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On the Story

Search Warrant Served in Missing Family Case; Chaos Reigns in Haiti; Bush Jump Starts His Campaign; "The Passion" Spurs National Debate; Bush's Radio Address

Aired February 28, 2004 - 10:00   ET

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

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


HEIDI COLLINS, CNN ANCHOR: Good morning, everyone. I'm Heidi Collins at the CNN Center.
We want to give you some news coming in to us "At This Hour", here at CNN. There is a search under way for that missing family we've been telling you about, ever since Valentine's Day now. You may remember the names Rebecca and Michael Hargon and their little four- year-old boy James Patrick.

Again, they have been missing since Valentine's Day. We are getting information that a search warrant -- the investigators are waiting for a search warrant to go into some property in Smith County.

Again, we do not have confirmation this is the home of the family. Not sure what the property is. But investigators are waiting for clearance to get a search warrant to go in and search this particular property again in Smith County.

You are looking at some pictures once again, of this family we've been telling you about for quite some time. We will, of course, keep our eye on the situation and bring any more information to you once it become available.

We want to go now to Washington and ON THE STORY. It begins right now.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Welcome to CNN's ON THE STORY where our journalists have the inside word on the stories that we covered this week. I'm Suzanne Malveaux, ON THE STORY of President Bush throwing himself into the political game this week, taking aim at his likely Democratic challenger.

KELLY WALLACE, CNN WASHINGTON CORRESPONDENT: I'm Kelly Wallace in Atlanta ON THE STORY of the Democratic candidates battling it out ahead of the 10 Super Tuesday states and punching away at the president as well.

MARIA HINOJOSA, CNN CORRESPONDENT: I'm Maria Hinojosa in New York, ON THE STORY of the popularity and the controversy of Mel Gibson's "The Passion".

DARYN KAGAN, CNN CORRESPONDENT: I'm Daryn Kagan in Hollywood. I will tell you what to expect from the movie industry when Hollywood dresses up tomorrow for Oscar night. KATHLEEN HAYS, CNN ECONOMICS CORRESPONDENT: And I'm Kathleen Hays, ON THE STORY of was it brave or reckless for Greenspan to talk about Social Security cuts in an election year?

Also, coming up, a daring less is more legal strategy for the Martha Stewart defense team. We'll go live to Haiti, and CNN's Lucia Newman and how that near neighbor to the U.S. is teetering on the brink.

And we'll listen to the president's weekly radio address at the end of the hour. E-mail us at onthestory@cnn.com.

Now, to Kelly and the Democratic race.

(BEGIN VIDEO CLIP)

JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: I think and Edwards/Kerry ticket would be powerful. And I think (UNINTELLIGIBLE)

(APPLAUSE, LAUGHTER)

QUESTION: And where does Edwards stand, in your thinking? You have to be thinking about him. To say you're not thinking about it, you're kidding me.

JOHN KERRY (D), PRESIDENTIAL CANDIDATE: I want to thank him for the consideration. I appreciate it.

(APPLAUSE, LAUGHTER)

(END VIDEO CLIP)

WALLACE: Well, it was all smiles at Thursday's sit around the table, CNN/"L.A. Times" debate that was just replayed here on CNN.

But behind the banter of vice presidential choices, of course, this very serious reality. John Kerry is way ahead. John Edwards needs some wins, coming up with 10 states holding contest on Super Tuesday. And that, you guys, is just three days away.

KAGAN: (AUDIO GAP) ...delegates, 370 of those in California. The media, you see out here from John Edwards, says, just wait, I'm the late surge guy. I can make up that ground as the primaries and caucuses are being held. Any chance for Edwards on Super Tuesday?

WALLACE: (AUDIO GAP) ... hoping to pull out some upsets somewhere. Not likely where you are, in California. He is very far behind. He did spend some time out there trying to get some free media attention, going to local markets trying to get attention, because it's so expensive to advertise there.

The thinking is, he possibly, possibly could win here in Georgia. He's also hoping for an upset in Ohio. Spending a lot of time this weekend as well in New York. He was in Minnesota yesterday. He's trying to focus on states very hard hit by job losses, manufacturing jobs that are gone, he says, because of trade. So he's hoping for some wins. Consensus is he just can't keep coming in second. He must have some wins Tuesday, really, and truly to keep going.

MALVEAUX: Kelly, one of the things I noticed there was an awful lot of talk about who was going to be who's running mate, between Kerry and Edwards. They were joking back and forth. From what you're hearing, is there serious consideration for those two teaming up against Bush?

WALLACE: No surprise, Suzanne, no one -- no one wants to talk about this. You ask Kerry 's aides privately, you say come on, you have to be talking about this. They say absolutely not, we're not taking anything for granted, we're focusing on winning the nomination.

It was interesting watching the debate. And Edwards has used this line before, saying an Edwards/Kerry ticket would be strong. You didn't hear John Kerry saying a Kerry /Edwards ticket would be very strong, saying he's not really there yet.

So no discussion, according to aides. Behind the scenes, this is clearly something people are thinking about. Some people raising the question looking at Edwards, is he possibly deciding the numbers are not on his side, trying to continue this positive campaign, get as much attention as possible to make him one of the serious contenders for that vice presidential slot?

He and his aide say that's not the case, but others believe he could be doing a little bit of that over the next few days.

HAYS: So, Kelly, tell me, why are Dennis Kucinich and Al Sharpton still in the race? Although, Kucinich did come in as a solid second in Hawaii. There's still some issue about what purpose it serves them? Is it trying to influence the platform at some point? Does one of them hope maybe they could be the vice president if Edwards doesn't take the job?

WALLACE: If you ask either candidate, they say they're in it to win. Al Sharpton says he's looking forward to delivering the speech when he receives the nomination at the Democratic Convention.

But if you also heard Al Sharpton at that debate, he kept talking about delegates. For Dennis Kucinich, it is the same story as well. They're hoping to have delegates and they're hoping to have an influence on these other candidates.

Both of those men, Dennis Kucinich and Al Sharpton, taking very different position from John Kerry and John Edwards. So they're hoping to gather enough influence to have some influence over the platform and over the candidates, whomever become the nominee and the vice presidential candidate.

HINOJOSA: Kelly, I'm wondering now that for example, New York is in the race on Super Tuesday, are you seeing any -- there's so much talk about transformations. Are you seeing any candidates -- certainly Kucinich and Sharpton are talking about urban issues, certainly Sharpton talking about issues regarding people of color.

Are you seeing anything different in terms of Edwards or Kerry making more of an urban agenda or reaching out to people of color, or is it still not happening?

WALLACE: Well, no, I think it's fair to say -- one of the most interesting things about the race is how all the other candidates seem to be influencing the other, even people like, of course, Howard Dean, especially, who was of course now out of the race. But he has had an enormous influence on just sort of what you're hearing from, especially John Kerry, as he goes around the country.

John Kerry is trying in some way to appeal to African-Americans. He was up in Harlem earlier in the week on Monday, getting the support of Congressman Charlie Rangel who had been backing Wesley Clark. There didn't seem to be a tremendous response there for John Kerry.

Edwards, as we know, is spending a lot of time here in Georgia, just this morning in fact speaking to African-American lawmakers. So both these men trying, as much as they can, to appeal to the African- American community, to talk about various issues. It doesn't seem as if either candidate has really struck a major chord at this point in time.

KAGAN: And Kelly it seems to me one of the problems John Edwards is having is defining what exactly is the difference between him and John Kerry, and why he would be a choice to go toward.

WALLACE: This is the difficult thing, Daryn, because they have really a lot -- much more in common than really their differences. They have voted on many of the same issues, they have the same position when it comes to the war, on education. Really, one of their only major differences, brought out in the CNN/"L.A. Times" debate, is the death penalty.

John Edwards supports it, John Kerry is opposed, except in the case of terrorist. So there is so much that they have in common that they are really trying to talk about their backgrounds and their styles. Everywhere John Edwards goes, he talks about being the son of a mill worker, saying he is more of an outsider than John Kerry. If you really want to bring about change, you need an outsider.

John Kerry talks about his lengthy experience on Capitol Hill, his Vietnam War experience, how he has the national security experience. They're contrasting their backgrounds, but not really their stances on issues.

HAYS: Of course, one big issue for everyone is the economy, jobs. Economic news making a big splash in the campaign thanks to Greenspan and his thoughts on cuts to the most popular program in America, Social Security. I'm back ON THE STORY after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP) GREENSPAN, CHAIRMAN, FEDERAL RESERVE BOARD: Dramatic demographic change is certain to place enormous demands on our nation's sources. Demands we almost surely will unable to meet unless action is taken. For a variety of reasons that action is better taken as soon as possible.

(END VIDEO CLIP)

HAYS: Calm and cool as always, but the reaction to Federal Reserve Chairman Greenspan and his suggestion to cut Social Security was hot and heavy. He'd said it before, but suddenly the election year seemed to catch up.

Welcome back. We're ON THE STORY.

HINOJOSA: So, Kathleen, you know this idea that Greenspan wants to cut Social Security -- I mean, I heard on the street, oh, great, they cut taxes for the rich and make the poor work -- I mean, make the old work longer into their lives. Is that the cynical view or really what's happening here?

HAYS: It wasn't just on the street a lot of economists making that criticism here in Washington. People saying we had this $300 billion tax cut, fair enough. In his testimony, Greenspan said make those tax cuts permanent if Congress will pay for them. But one of the ways he suggests paying for them, again, is by raising the retirement age even further.

Greenspan said in his testimony the budget deficit -- President Bush saying he could halve it over the next five years, just isn't going to work. We're going to have something like 77 million baby boomers eligible to receive Social Security by the year 2011.

So the question is what do you do, what do you do to get the money? Greenspan has his solution. But a lot of people, too, I want to add, one more thing. This is the same Fed chairman who two years ago said this budget surplus is so big, we better start cutting taxes in support of the first round of tax cuts.

A lot of people are thinking, hey, Greenspan, you're trying to get it both ways. Maybe you got it wrong, and maybe the solution you're suggesting isn't the best thing. But it's a very important debate, obviously.

KAGAN: Kathleen, one of the biggest business stories of the week broke yesterday. The federal judge in the case against Martha Stewart dropping the most serious charge against her. But the domestic diva is not completely out of the woods yet, is she?

HAYS: No. But they've got to be breathing the hugest sigh of relief. The charge of securities fraud that Martha Stewart lied to the public, particularly to her shareholders, about whether or not she had sold ImClone stock on kind of an insider trading basis, to protect the shareholder value -- that was the securities fraud charge.

From the very beginning, the judge said, you know this is a very novel way of looking at what securities fraud actually is. This is the charge that carried up to 10 years in prison. The judge dismissed this. She still faces conspiracy, obstruction of justice, and those carry penalties up to five year.

Apparently, even if she were to be convicted of those other charges, there might be a way Martha could see no jail time at all. So, again, she has to be feeling a lot better as she waits for summations this week and then the jury deliberations.

MALVEAUX: Kathleen, I know we all kind of joked about community service with Martha Stewart. If your garden was done by Martha Stewart, how interesting that would be.

But I want to bring it back to the Greenspan comments and Social Security. Because one of the things that the Bush administration reacted to, very strongly, saying that, yes, they weren't going to go ahead and cut these benefits.

But what was really important was the fact that you had 2001, he was talking about this as a platform, the whole idea of these personal accounts with Social Security, having to pay for them, his own commission saying, look, you're going to have to make these cuts, somehow we'll have to adjust. And he dropped it years ago.

This is something the administration certainly doesn't want to take up during this election time and it is such a hot political issue.

HAYS: Of course, this is a very interesting solution, right? We all have 401(k)s, right? We're all thinking about saving for the future. So there are people who say -- and this is what some of Bush and his supporters say, why not have personal retirement savings accounts within Social Security. You know that 12 percent tax you pay it started out as a 2 percent payroll tax?

Invest that yourself, start when you're young. Despite the ups and downs of the stock market, you'll have money in the end. One thing, though, it's estimated it will cost $1 trillion to switch over from the current system, to this privately funded system. That's one issue.

And there are other people who say, look, Americans have already gotten battered by stock market investments do we really think this is such a safe thing? We need something that is safe and secure, that's why you don't want to take over Social Security away in that way.

WALLACE: Kathleen, are I'm curious, because you should have seen the smiles on the faces of the Democratic candidates after Greenspan did this. The was the day after, of course, the controversial gay marriage. They certainly wanted to change the focus, put it back to the economy.

There was Greenspan, and they pounced, saying, No, Democrats will protect Social Security. Are people on Wall Street saying that Alan Greenspan is sort of speaking the truth and it's time for the country to wake up and say, we just have to do something at some point in time?

HAYS: Well, you know, that's a good point, Kelly. Because, yes, something has to be done. That's their -- the system is going to face a short fall. When they talk about a Social Security trust fund, that's a fallacy. Basically, the government takes in taxes and it pays them out.

At some point, the Social Security system will be taking in less money then it has to pay out in benefits. So something has to be done. But I think what some people are critical of Greenspan for is saying, you're the man who support the tax cut. You still support make the tax cuts permanent. Why couldn't you, for example, change the payroll tax? Maybe employers should pay less of that, maybe someone else should pay more of that?

I don't think Greenspan was being so political toward either side. I don't think he meant to hurt President Bush or help him. Actually, one of the more interesting comment I got this week was from a trader was from a Chicago at the Chicago Mercantile Exchange, who said this kind of reminded him of Moses talking to the Hebrew people, saying, I've taken you as far as I can to the Promised Land. At some point you're on your own. And Greenspan maybe kind of issuing some warnings for the very, very long term.

Now, granted it happened in an election year, but just reminding everybody, whether you like my solutions or somebody else's, something has to be done.

KAGAN: Well, something will be done here in Hollywood tomorrow night. It will be Oscar night. We're talking Oscar gold. I'll be back with a wrap of what you can expect coming up after this break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BEN KINGSLY, ACTOR, OSCAR NOMINEE: It is totally new, my fourth nomination, and it is totally new.

(END VIDEO CLIP)

KAGAN: That was Ben Kingsley talking to me just a couple of weeks ago at the Oscar Nominee Lunch. He is nominated for his role in "The House of Sand And Fog."

If you're asking, is it Oscar time already? It's not just you. The Academy made the choice this year to move it up by about four weeks, deciding it didn't want to be the last awards show in town. So, it is early this year, but frankly, Hollywood is ready.

Last year's Oscars, completely overshadowed by the war in Iraq. It was very subdued, they didn't do the red carpet. They are ready to take back their big night and it is tomorrow night here in Hollywood.

WALLACE: Daryn, fair to say we all envy the job you have ahead of you. But give us a sense -- you know, the other award shows, we know the winners in those shows. Is the sense that those winners, likely to be winners again? Or should we expect some big surprises tomorrow night?

KAGAN: Well this, the whole process of moving up the Oscar night has completely thrown all the conventional wisdom out the window. It used to be, though, who won the Golden Globe that would affect the nomination. Now they're thinking that will affect who wins the big award.

One big category to watch here is best actor. That is the one that is really up for grabs. Sean Penn in "Mystic River" was considered almost a shoo-in. It is his fourth nomination as well. He's never won. But some other late contenders, Bill Murray in "Lost in Translation" and then just last weekend, at the SAG Awards, we Johnny Depp swoop in there, literally, and win for his comedic performance in "Pirates of the Caribbean". So, a lot of awards up for grabs this Oscar season.

HINOJOSA: Hey, Daryn, you're right, last year, it was -- the Oscars suddenly became so political. I can't remember seeing an Oscars that was so political until maybe the '70s. What about this year? Are politics just off the table? Or is it going to be expressed in different ways, people talking gay marriage, what's the issue, or is there none this year?

KAGAN: Well, this is Hollywood and people do have their issues out here, don't they, political and otherwise, Maria. You will expect -- almost expected statements.

We're hearing that a number of stars will be driving up in electrical cars, instead of the stretch limousines, to make a statement about energy conservation. You might see some making a statement about the troops in Iraq.

An interesting thing to watch here, and this is an overflow from what happened at the "Super Bowl" there will be a five-second delay. And Joe Roth, the producer of the show, told me yesterday that there will be a woman, a censor from ABC sitting right there in the control room with her finger over the button. She can push it at any time.

But the word is, she will only push it if it is something obscene, and they will not be trying to do any kind of censorship if someone comes out, I don't know, let's say, Susan Sarandon or Tim Robbins, they're known to make political statements. If there's any type of political statement, those will not be bleeped here in Hollywood, tomorrow night.

MALVEAUX: Daryn, it may be difficult to determine this, but what are the actors, what are their reactions to all of this? This 5 second delay and the "Super Bowl" with Janet Jackson? I mean, do they really feel like their expression, their moment, their night is really being put down or dampened somewhat?

KAGAN: Well, you know, I'll tell you another thing to watch -- because Joe Roth, again, the producer, made a decision this year -- Oscar, as the years has gone on has skewed older and they're not getting that key demographic group of the younger men. So expect more comedy.

They've put in comedy skits this year with people like Robin Williams, Will Ferrell, Billy Crystal is hosting, Jack Black, "School of Rock." These are the types of people you'll see on the Oscars tomorrow night. And they're looking for some of those outrageous moments.

What Oscar's going for, and the Academy is going for, and ABC is going for in ratings might be against what the censors are going for in terms of a cleaner show.

HAYS: I'm a big one for thinking that costuming, what you wear is very important. I always wear red on Federal Reserve days. But I want to know what you're wearing.

(LAUGHTER)

So, can you -- much more interesting in terms of the big night and what you think some of the great gowns are going to be, besides yours.

KAGAN: Let's talk about what you wear. I did not know you wore red on Federal Reserve day. I learned something today, Kathleen.

(LAUGHTER)

I will be wearing a gown by Vera Wang. It is a magenta, fuchsia color, I guess you could say. Pretty excited about it. You know have to go for the look, but we're also working. That red carpet is kind of some serious, physical work there. So, I'm excited about that. Some nice bling-bling from folks at Fred Lleyton (ph).

In terms of the big picture of what you'll expect to see, a lot of color. That's what we've been seeing at the awards shows coming up. Again, spring coming around the corner, glamour coming back, "jewel tones" is the key phrase you hear out here.

(LAUGHTER)

WALLACE: Daryn, quick question, though. It does seem as if this could be a good year for women. You have very strong women actresses, up for, you know, best actress, best supporting actress, even directors. Are you hearing some buzz this could be a year where -- you know, really strong for women at the Academy?

KAGAN: The big woman story is in the director category. Sophia Coppola, she is Hollywood royalty herself. Of course, daddy is Francis Ford Coppola. She is nominated for best director of "Lost in Translation". Incredible, ladies, when you stop and think, Sophia Coppola is only the first American woman ever nominated in 76 years of Oscar history for best director. And she's only the third woman ever nominated in this category. Will she win? Probably not. Because Peter Jackson will probably be rewarded for his trilogy, for the third part of "Lord of the Rings". But she is also nominated for best original screenplay. So, one of two things will happen, she'll either pick up best original screenplay or I'm sure that's not the last we have heard of the very young, talented woman.

HAYS: And when you say young, 26, 28, it's just amazing. She is a baby.

KAGAN: She is a baby, but look how -- she was in school -- for film school -- her first exposure to film, remember "The Godfather"? She played Michael Corleone's son, the infant. So she's been around the movies practically since the day she came out of the womb, so she's had some good training at home.

HAYS: There you go, bouncing on her daddy's knee.

From Hollywood to a dead serious political and human drama playing out in Haiti. We'll be back ON THE STORY with CNN's Lucia Newman in Haiti after the break and a check on the headlines.

(BEGIN VIDEO CLIP)

ANNOUNCER: Lucia Newman is CNN's Havana bureau chief and correspondent. Earlier she was CNN bureau chief in Mexico, Chile, Nicaragua and Panama. She has a communications degree from the University of New South Wales in Australia.

(COMMERCIAL BREAK)

COLLINS: Good morning, everyone, I'm Heidi Collins at CNN Center. Breaking news this morning in the case of the missing family from Yahoo County (sic), Mississippi.

Michael and Rebecca Hargon and their 4-year-old son, James Patrick -- you see them here -- have been missing since February 14, Valentine's Day. Law enforcement authorities now believe they are close to breaking the case.

With more on this now, we are joined by Warren Strain, public affairs director for the Mississippi Department of Public Safety. He's joining us by telephone from Smith County.

Warren, are you there? Can you hear me?

WARREN STRAIN, MISSISSIPPI DEPARTMENT OF PUBLIC SAFETY: Yes, good morning, Heidi.

COLLINS: What can you tell us about what's happening there? I understand investigators have been waiting for a search warrant. Do they now have that in their possession?

STRAIN: They do, in fact, Heidi. And it has just been within the past three or four minutes been affected on a place of business, a veterinary clinic, which is -- also doubles as a residence here in Smith County, near the town of Taylorsville.

COLLINS: Can you tell us who owns that office/home, if you will?

STRAIN: It is owned by a female by the name of Lisa Ainsworth (ph). The veterinary clinic, however -- she's also residing at this residence, is another individual. That individual is currently being questioned by law enforcement at the Smith County Sheriff's Department.

COLLINS: Is that individual now considered a suspect?

STRAIN: Well, at this point, we're just questioning him. And wanted to take a look inside the place of business and residence here, just to kind of sort through things.

Midday yesterday, the Bureau of Investigations, which is a division of the Department of Public Safety, developed some information in this very intense investigation that's been going on for two weeks now. That led us here to Smith County, where the search warrants are being affected, and the individual who lives here is being questioned.

COLLINS: Warren, can you tell us any more specifically exactly what type of information led investigators to this property?

STRAIN: At this point it would be premature to get into that.

COLLINS: OK. Any relation to the family here, as far as the people residing, or working in this property?

STRAIN: The -- as far as the Hargon family, it is a half-brother of Michael.

COLLINS: OK. Anything else you can tell us about that relationship?

STRAIN: Excuse me -- he's a cousin, I'm sorry. But not at this point.

COLLINS: I know you guys have really been working with a lot of tips. It has been, as you say, quite awhile, very intense, investigative work. How much information have you gotten from the public?

Strain: A good bit. We've had 400 leads come in to the task force, multi-jurisdictional task force made up of federal, state, and local authorities. We've had 400 tips that we've been working off of.

One of those tips, which was developed by the Bureau of Investigations, in terms -- in terms of interviews, has developed on out. We have also moved forward rapidly overnight.

And as these things go as much as a domino-effect-type situation, where we've had several hypotheses, one of which was this particular situation that we were talking about. And now we're moving forward with that. COLLINS: So this is -- If I understand you correctly, this is something that investigators had anticipated, going to this area?

STRAIN: Well, it was -- it was one of the different theories that had come forward.

COLLINS: All right. Can you break us down for us, Warren, the best that you can? How close would investigators be to solving this case?

STRAIN: We are very confident that we are very close to resolving the whereabouts of the Hargon family.

COLLINS: All right. We, of course, will keep our eye on this situation for our viewer.

I must want to recap quickly. We have been speaking with Warren Strain, public affairs director for the Mississippi Department of Public Safety. Telling us that investigators have now obtained a search warrant for some type of property in Smith County, in the investigation of the Hargon family, Michael, Rebecca, and James Patrick, who have been missing since Valentine's Day.

He also tells us, the headline here, investigators very close to solving this case. As we said, we will keep our eye on it very closely for you and bring you any more information, should it become available.

Warren, if you're still with us, thanks so very much for your time.

And for now, back to ON THE STORY.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will turn back any refugee that attempts to reach our shore. And that message needs to be very clear, as well, to the Haitian people.

(END VIDEO CLIP)

SUZANNE MALVEAUX, CO-HOST: President Bush, Wednesday, with a blunt message, that the U.S. Coast Guard will send back any Haitian refugees.

No word yet on any multinational military force. But Pentagon officials told CNN the U.S. was considering sending a three-ship task force with more than 2000 Marines to sit off the Haitian coast.

Welcome back. We're ON THE STORY.

And joining us now from Haiti, via videophone, is CNN's Lucia Newman.

Lucia, I want to tell you, first of all, that we commend you on your courageous work. You have been talking about people who have been massacred, beheaded, and all these type of things.

The Bush administration is under an incredible amount of pressure to intervene immediately. The Congressional Black Caucus going directly to the president this week. Also, the U.S. Coast Guard sending back more than 500 Haitians, back on that coast, to that country.

What are you seeing? What is the situation on the ground?

LUCIA NEWMAN, CNN CORRESPONDENT: It's very, very tense. It's chaotic. Anarchic may be the best word.

Certainly, yesterday, there was actually -- nobody has any control of this place. I mean, there were these gangs of thugs armed to the teeth in trucks, riding all over the city, roaming all over. Looting, robbing people, killing people, shooting them.

One man, in fact, was found castrated by a machete on the ground. Another reporter had a gun held to his head, while another Haitian was executed right in front of him.

At this, at the port, which was being looted by everyone who wanted to take whatever they could find. And the police were nowhere to be found, Suzanne.

KATHLEEN HAYS, CO-HOST: Lucia, question for you. What is the likelihood, or is there any likelihood, that President Aristide will heed growing calls for him to resign or leave the country and allow the political opposition to take control? Is that likely?

NEWMAN: If you listen to what he has to say, it's not likely at all. He, in fact, repeated this morning on Haitian state television that he wasn't going to leave under any circumstances. Out of the question, he said.

In fact, he said that he and his government were going to be back in the palace Monday morning, back at their offices, business as usual. But of course, as you know, there's nothing in this country that's business as usual. It's chaotic.

The rebels say that they've surrounded the city. We haven't actually seen them, but they've certainly caused havoc in the whole country. And they say that unless he gets out of the palace soon, they're going to march in and get him.

HAYS: Lucia, last week, the president sent some 50 Marines to guard the American embassy. There was some sense that the administration might send 2000 Marines to sit off the coast.

How is that playing into the situation? And is it helping at all, restoring the order? And how about the Americans and other people who are kind of stuck in Haiti now?

NEWMAN: I would say that that announcement really hasn't had much of an impact at all. Not here. Most Haitians probably don't even know about it. The political opposition is kind of divided. Some say that the Americans should come in and help restore order after President Aristide resigns. Others say no, all we need is for him to resign, and we'll take care of the situation ourselves. We don't need any more foreign interference. So it really depends on who you ask.

But the American citizens here are feeling very insecure. So are all foreigners. In fact, yesterday, there was despair at the airport. People trying to get out of here, but all flights have been canceled. People just can't leave here.

The border with the Dominican Republic is closed, too. So people are stuck. People who want to leave just can't get out.

We saw helicopters yesterday going to the embassy of the Dominican Republic, which is just very near here, where I'm speaking to you from, and they were ferrying some foreigners out of the embassy, taking them back to the Dominican Republic, but in very small quantities. They were small Huey helicopters so they can't take very many people.

So they're choosing the people whom they say most need it for humanitarian reasons.

MARIA HINOJOSA, CNN CORRSPONDENT: Lucia, you know, we're all reporters and we want to know what it's like to be working in a place like Haiti. And you were saying that you yourself were even held up at some point.

So can you tell us what is it like day to day for you as a reporter? How are you making the decision of what you're recovering? And how often are you able to get out on the street when it's so dangerous at this point?

NEWMAN: Depends on the day, really. Yesterday was very dangerous, I have to tell you. We were lucky.

We were -- Our crew was going down the main road and saw a truck load of these armed thugs coming towards the car, pointed a gun, but then we swerved off and we were lucky.

But other reporters were held at gunpoint. Some were robbed, bribed. An NBC car had the window broke within a rifle butt. People were very, very frightened.

And in the past, in other demonstrations where we had been, the pro-government people are very, very aggressive towards the foreign media. They think that we're on the side of the opposition.

We're not, obviously. We're here to report a story. But they were seen as that. So they're very aggressive towards the foreign correspondents. A Mexican reporter, in fact, was hit on the head with a machete. Thank goodness he was wearing a helmet.

But it's -- you have to play it by ear, really. MALVEAUX: And Lucia, I want to go back to one thing you said about, the State Department actually issued an announcement to Americans, essentially saying that they should hunker down and try to find a safe place, because there's just no way to get out of the country now.

NEWMAN: Yes.

MALVEAUX: But we want to thank you for your good work, and wish you good luck, to be careful. We'll all be watching ON THE STORY in the days ahead.

And from diplomacy to politics and how President Bush jumped into the race with both feet this week. Back on that story after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BUSH: For NAFTA and against NAFTA, for the Patriot Act and against the Patriot Act. In favor of liberating Iraq, and opposed to it. And that's just one senator from Massachusetts.

(END VIDEO CLIP)

MALVEAUX: President Bush this week, breaking out and directly take on Democratic front-runner John Kerry. Welcome back. We're ON THE STORY.

HAYS: Well, it's no wonder he's lashing out at Kerry and trying to get some hits in. Some people say the reason consumer confidence has fallen recently, a big drop in February, is because the Democrats have been beating so hard on the economy and jobs.

And other people say no, it's because jobs are lousy. Either way, Bush has got to be getting worried, and that's why he's on the attack now.

WHITFIELD: The campaign is essentially a jump-start for this group, because they were not expecting to jump in so quickly.

You'll see the rhetoric has changed, and it's more aggressive. You had President Bush out there taking on John Kerry's record and essentially -- why now? They don't know exactly what the transition is going to be like inside of Iraq.

You brought up a very good point. The economic condition, the jobs aren't coming as quickly as they would like.

And, also, we're going to see, two days after Super Tuesday, this huge blitz they've been talking about, campaign ads on television, more than $4 million worth.

And they're going to be hitting CNN, other cable networks, Fox, sports. They want to hit those NASCAR dads. They want to hit those people who are watching golf, all the sports, the big sports people. They want to reel them in as quickly as possible, because they have been hit hard over the last four months.

DARYN KAGAN, CO-HOST: Suzanne, the big statement President Bush making up to this point, coming out and making -- saying that he does support, in fact, a ban on gay marriage as an amendment to the contusion.

He made his big statement, called for Congress to act, and then we didn't really hear anything. It didn't seem like anybody on Capitol Hill picked up that ball. And President Bush, you haven't heard speak a lot about it since that big statement from the White House.

MALVEAUX: You know what's very interesting, was that if you watched the Democratic debates, and you heard Reverend Sharpton, got a huge applause saying that doesn't -- shouldn't matter who you go to bed with that night, but whether or not you wake up, the two of you have a job the next morning.

One of the things that the Bush administration reacted to was initially saying, yes, we support a constitutional amendment banning gay marriage, but then later softening the position. You heard President Bush coming out more, talking about supporting civil union, about respect and civility.

This is something where the Bush administration is really walking a very fine line. This is a very delicate balancing act. They want to support the social conservatives. They've been asking for this for months now. No surprise to them.

But also, according to the moderate base they want to say, look, we support civil unions, but we do not tolerate gay marriages.

HINOJOSA: You know Suzanne, I was actually up in New Paltz yesterday, where the 26-year-old mayor there from the Green Party started giving -- same-sex marriages. And tons of people came up, out of the blue really.

There's a lot of discussion in the gay and lesbian community, how much of this was a really planned and calculated strategy? How much is this people jus coming out and saying, I want to take part in what they call the new civil rights movement of the era.

But is President Bush set up at this point to really take on a culture war around the issue of gay marriage in this country?

MALVEAUX: You bring up a really good point. And one of the things is that the Democrats say that this is a cultural war, that this is a way of escaping dealing with some of the other issues: Iraq, the economy, and so forth.

What -- What is also very interesting is that President Bush, four years ago, essentially said that he believed that it was a state issue, that it was up to the states. Both he and Vice President Cheney have changed their tune. They say, because it's a direct reaction to what they're seeing in San Francisco and Massachusetts and other places.

HINOJOSA: Well...

HAYS: Suzanne, very quickly, let me -- I'm sorry, Maria, you go ahead. You go.

HINOJOSA: From the war -- well, from the White House politics to a very different story, the movie house, and how "The Passion" revved up emotions. I'm back on that story after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's the most awesome thing I've ever seen.

UNIDENTIFIED MALE: It was an unambiguous portrayal that the Jews were blood thirsty, the Jews were angry, the Jews were vengeful.

(END VIDEO CLIP)

HINOJOSA: A fan and a critic, as the new Mel Gibson movie "The Passion of the Christ" opened this week and prompted big crowds and big opinions about its spiritual power, its accuracy, its violence, its potential to kick up old prejudices.

Welcome back. We're ON THE STORY.

KAGAN: Maria, I've been -- I have not seen the movie myself yet. I've been fascinated, the people I talk to, people I interviewed, how different people can go and see the exact same movie and come out with a completely different experience and describe a completely different film.

HINOJOSA: That's exactly it, Daryn. It's the kind of movie that it's hard to make a generalization about.

It you are close to Jesus Christ and you want to get closer to him or feel the experience, you're going to go into this movie, and you're come out really identifying with what Jesus Christ went through.

I mean, it is a very painful -- really two hours. There's just no other way to describe it but painful, bloody, gory, difficult to watch, no doubt. Not something that you're going to want to take children to, even preteens to.

On the other hand, if you have issues around anti-Semitism, you might go into this movie and you're going to see what some people say are very stereotypical images of Jewish people.

One critic I spoke to said they were all ugly, with big noses and bad teeth and they all wanted -- they were all bloodthirsty. So it's very, very hard to come out with one opinion.

KELLY WALLACE, CO-HOST: Maria, give us a sense of the premiere. You said you were there. There has been so much attention to this movie, so much controversy. What was it like there on that day?

HINOJOSA: Nothing like a premiere that I've ever seen. There were -- Not a typical audience. A lot of religion folks who went in from one side or the other.

But what's weird is that you're supposed to be having a religious experience. There were people bantering about, you know, sit down, you jerk. Get off my seat. Move over. Which is just so strange.

The other premiere that I went to, there were people saying it was anti-Semitic. They were wearing concentration camp uniforms and saying Hitler gives the movies two thumbs up.

So very, very strange, drawing a lot of -- a lot of very divergent opinions out there.

HAYS: So, Maria, what about the buzz of what this means for Mel Gibson? Obviously, I think one of the cute quips is confusing prophet and profit. He's make a lot of money. The opening figures on this movie, incredible, although obviously, stacked with religious audiences.

HINOJOSA: You know, it depends. There's buzz in Hollywood among some who are saying they will never work with Mel Gibson ever again.

There are others who are saying he made a great movie. But it's showing profits so therefore, that's what works in Hollywood.

And still others who say, you know what this is the controversy of the moment, but it all might blow over and so Mel Gibson will be good to go in, who knows, a couple of months. It's hard to say at this point.

HAYS: It is. But whoever would have thought that another movie about Jesus Christ would be kicking up so much dust?

Well, President Bush gets his say in his weekly radio address. We're back ON THE STORY.

(COMMERCIAL BREAK)

MALVEAUX: Thanks to my colleagues and thank you for watching ON THE STORY. we'll be back next week.

Still ahead, "PEOPLE IN THE NEWS," focusing this week on Mel Gibson and his new movie, "The Passion of the Christ."

Coming up at the top of the hour being a check of the top stories. But first, the president's weekly radio address.

BUSH: Good morning. For many years, illegal drug use has been a serious problem facing our country. Drugs cost people their savings and their health and rob children of their promise.

My administration has taken action to confront this danger. We have pursued an ambitious, focused strategy to cut demand for drugs at home, interdict supplies of drugs abroad and treat more addicts who seek help.

In 2002, I set a goal to reduce illegal drug use by 10 percent over two years and by 25 percent over five years. This Monday, we will release the annual National Drug Control Strategy, which shows the impressive progress we have made.

Youth drug use declined 11 percent between 2001 and 2003, meaning 400,000 fewer young people used drugs. These results exceeded our goal and proved that our hard work is paying off.

This year, we will expand our strategy so that we can make even greater progress in the fight against drugs.

The best way to cut drug use is to cut demand for drugs at the ground level. So my budget includes a $10 million increase for drug- free communities, a common sense prevention program that supports local coalitions working to stop young people from using drugs.

Research shows that teenagers who abstain from drugs are unlikely to start using them later in life. So I have asked Congress to provide an additional $23 million for high schools who want to develop and carry out drug testing programs.

Random drug testing gives students a strong answer to the social pressure to try drugs. It helps schools identify those using drugs so they can intervene with counseling and treatment before experiments turn into addictions.

We've seen the positive results of drug testing across the country. Just two years after Hunterdon Central Regional High School in New Jersey began its testing program, drug use had declined significantly throughout the school.

Hunterdon's principal described the program's effect this way: "We have never seen a prevention curriculum that affected the numbers this substantially. We finally had a tool that was making a large difference."

As we reduce demand for drugs, we're also preventing drug supplies from entering our country. Our military and law enforcement personnel are targeting the world's most dangerous drug trafficking networks. We're dismantling these organizations and putting their leaders in jail.

And by working with governments across our hemisphere, we're drying up the world's supply of illegal drugs at its source.

Finally, we are taking steps to help those who have fallen into the destructive cycle of addiction. Drug dependence undermines productivity as well as moral conviction and devastates millions of families each year.

Some addicts recognize their problem and want to change but cannot afford access to professional care. To help men and women like these, I've launched an initiative called Access to Recovery. This program will help thousands of Americans get the treatment they need.

And because I know a good way to change a person's behavior is to change their heart, faith-based treatment programs will always be an option. Congress has provided $100 million for this lifesaving program, and this year I have asked them to double that amount.

The progress reported in this year's Drug Control Strategy is encouraging. Our goals are ambitious, and we have seen they can be achieved. Now we will build on the improvement of the past two years. And we will continue working toward a society in which all citizens can lead a life of independence and purpose, free from the devastating influence of drugs.

Thank you for listening.

MARTIN SAVIDGE, ANCHOR: I'm Martin Savidge at the CNN Center in Atlanta with the headlines at this hour.

Prayer interrupted by violence. A suicide bomber attacks a Shia mosque in Pakistan. Police say people were praying when the explosives were detonated in Rawalpindi. There's been no claim of responsibility yet.

Haiti on the brink of anarchy. Rebels there claim that they have surrounding the capital of a Caribbean nation in their bid to oust President Jean-Bertrand Aristide. There have been lootings -- rather, burnings and killings in Port-au-Prince. Meanwhile Mr. Aristide vows to stay in office.

In Iraq, American soldiers killed suspect attackers in Mosul. The military says the suspects were involved in a drive-by shooting at an Iraqi police traffic stop in northern Iraq. Also in Mosul, U.S. soldiers arrest three people after homemade bombs were found.

Back at home, yielding to pressure, House Speaker Dennis Hastert, will now give the 9/11 Commission a 60 day extension to turn in it's report. Hastert had opposed an extension on the May 27 deadline. The panel and family members of the victims demanded that extension.

I'm Martin Savidge at CNN Center. A look at faith that drove Mel Gibson to make the controversial film "The Passion of the Christ" on "PEOPLE IN THE NEWS."

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





in Haiti; Bush Jump Starts His Campaign; "The Passion" Spurs National Debate; Bush's Radio Address>


Aired February 28, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Good morning, everyone. I'm Heidi Collins at the CNN Center.
We want to give you some news coming in to us "At This Hour", here at CNN. There is a search under way for that missing family we've been telling you about, ever since Valentine's Day now. You may remember the names Rebecca and Michael Hargon and their little four- year-old boy James Patrick.

Again, they have been missing since Valentine's Day. We are getting information that a search warrant -- the investigators are waiting for a search warrant to go into some property in Smith County.

Again, we do not have confirmation this is the home of the family. Not sure what the property is. But investigators are waiting for clearance to get a search warrant to go in and search this particular property again in Smith County.

You are looking at some pictures once again, of this family we've been telling you about for quite some time. We will, of course, keep our eye on the situation and bring any more information to you once it become available.

We want to go now to Washington and ON THE STORY. It begins right now.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Welcome to CNN's ON THE STORY where our journalists have the inside word on the stories that we covered this week. I'm Suzanne Malveaux, ON THE STORY of President Bush throwing himself into the political game this week, taking aim at his likely Democratic challenger.

KELLY WALLACE, CNN WASHINGTON CORRESPONDENT: I'm Kelly Wallace in Atlanta ON THE STORY of the Democratic candidates battling it out ahead of the 10 Super Tuesday states and punching away at the president as well.

MARIA HINOJOSA, CNN CORRESPONDENT: I'm Maria Hinojosa in New York, ON THE STORY of the popularity and the controversy of Mel Gibson's "The Passion".

DARYN KAGAN, CNN CORRESPONDENT: I'm Daryn Kagan in Hollywood. I will tell you what to expect from the movie industry when Hollywood dresses up tomorrow for Oscar night. KATHLEEN HAYS, CNN ECONOMICS CORRESPONDENT: And I'm Kathleen Hays, ON THE STORY of was it brave or reckless for Greenspan to talk about Social Security cuts in an election year?

Also, coming up, a daring less is more legal strategy for the Martha Stewart defense team. We'll go live to Haiti, and CNN's Lucia Newman and how that near neighbor to the U.S. is teetering on the brink.

And we'll listen to the president's weekly radio address at the end of the hour. E-mail us at onthestory@cnn.com.

Now, to Kelly and the Democratic race.

(BEGIN VIDEO CLIP)

JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: I think and Edwards/Kerry ticket would be powerful. And I think (UNINTELLIGIBLE)

(APPLAUSE, LAUGHTER)

QUESTION: And where does Edwards stand, in your thinking? You have to be thinking about him. To say you're not thinking about it, you're kidding me.

JOHN KERRY (D), PRESIDENTIAL CANDIDATE: I want to thank him for the consideration. I appreciate it.

(APPLAUSE, LAUGHTER)

(END VIDEO CLIP)

WALLACE: Well, it was all smiles at Thursday's sit around the table, CNN/"L.A. Times" debate that was just replayed here on CNN.

But behind the banter of vice presidential choices, of course, this very serious reality. John Kerry is way ahead. John Edwards needs some wins, coming up with 10 states holding contest on Super Tuesday. And that, you guys, is just three days away.

KAGAN: (AUDIO GAP) ...delegates, 370 of those in California. The media, you see out here from John Edwards, says, just wait, I'm the late surge guy. I can make up that ground as the primaries and caucuses are being held. Any chance for Edwards on Super Tuesday?

WALLACE: (AUDIO GAP) ... hoping to pull out some upsets somewhere. Not likely where you are, in California. He is very far behind. He did spend some time out there trying to get some free media attention, going to local markets trying to get attention, because it's so expensive to advertise there.

The thinking is, he possibly, possibly could win here in Georgia. He's also hoping for an upset in Ohio. Spending a lot of time this weekend as well in New York. He was in Minnesota yesterday. He's trying to focus on states very hard hit by job losses, manufacturing jobs that are gone, he says, because of trade. So he's hoping for some wins. Consensus is he just can't keep coming in second. He must have some wins Tuesday, really, and truly to keep going.

MALVEAUX: Kelly, one of the things I noticed there was an awful lot of talk about who was going to be who's running mate, between Kerry and Edwards. They were joking back and forth. From what you're hearing, is there serious consideration for those two teaming up against Bush?

WALLACE: No surprise, Suzanne, no one -- no one wants to talk about this. You ask Kerry 's aides privately, you say come on, you have to be talking about this. They say absolutely not, we're not taking anything for granted, we're focusing on winning the nomination.

It was interesting watching the debate. And Edwards has used this line before, saying an Edwards/Kerry ticket would be strong. You didn't hear John Kerry saying a Kerry /Edwards ticket would be very strong, saying he's not really there yet.

So no discussion, according to aides. Behind the scenes, this is clearly something people are thinking about. Some people raising the question looking at Edwards, is he possibly deciding the numbers are not on his side, trying to continue this positive campaign, get as much attention as possible to make him one of the serious contenders for that vice presidential slot?

He and his aide say that's not the case, but others believe he could be doing a little bit of that over the next few days.

HAYS: So, Kelly, tell me, why are Dennis Kucinich and Al Sharpton still in the race? Although, Kucinich did come in as a solid second in Hawaii. There's still some issue about what purpose it serves them? Is it trying to influence the platform at some point? Does one of them hope maybe they could be the vice president if Edwards doesn't take the job?

WALLACE: If you ask either candidate, they say they're in it to win. Al Sharpton says he's looking forward to delivering the speech when he receives the nomination at the Democratic Convention.

But if you also heard Al Sharpton at that debate, he kept talking about delegates. For Dennis Kucinich, it is the same story as well. They're hoping to have delegates and they're hoping to have an influence on these other candidates.

Both of those men, Dennis Kucinich and Al Sharpton, taking very different position from John Kerry and John Edwards. So they're hoping to gather enough influence to have some influence over the platform and over the candidates, whomever become the nominee and the vice presidential candidate.

HINOJOSA: Kelly, I'm wondering now that for example, New York is in the race on Super Tuesday, are you seeing any -- there's so much talk about transformations. Are you seeing any candidates -- certainly Kucinich and Sharpton are talking about urban issues, certainly Sharpton talking about issues regarding people of color.

Are you seeing anything different in terms of Edwards or Kerry making more of an urban agenda or reaching out to people of color, or is it still not happening?

WALLACE: Well, no, I think it's fair to say -- one of the most interesting things about the race is how all the other candidates seem to be influencing the other, even people like, of course, Howard Dean, especially, who was of course now out of the race. But he has had an enormous influence on just sort of what you're hearing from, especially John Kerry, as he goes around the country.

John Kerry is trying in some way to appeal to African-Americans. He was up in Harlem earlier in the week on Monday, getting the support of Congressman Charlie Rangel who had been backing Wesley Clark. There didn't seem to be a tremendous response there for John Kerry.

Edwards, as we know, is spending a lot of time here in Georgia, just this morning in fact speaking to African-American lawmakers. So both these men trying, as much as they can, to appeal to the African- American community, to talk about various issues. It doesn't seem as if either candidate has really struck a major chord at this point in time.

KAGAN: And Kelly it seems to me one of the problems John Edwards is having is defining what exactly is the difference between him and John Kerry, and why he would be a choice to go toward.

WALLACE: This is the difficult thing, Daryn, because they have really a lot -- much more in common than really their differences. They have voted on many of the same issues, they have the same position when it comes to the war, on education. Really, one of their only major differences, brought out in the CNN/"L.A. Times" debate, is the death penalty.

John Edwards supports it, John Kerry is opposed, except in the case of terrorist. So there is so much that they have in common that they are really trying to talk about their backgrounds and their styles. Everywhere John Edwards goes, he talks about being the son of a mill worker, saying he is more of an outsider than John Kerry. If you really want to bring about change, you need an outsider.

John Kerry talks about his lengthy experience on Capitol Hill, his Vietnam War experience, how he has the national security experience. They're contrasting their backgrounds, but not really their stances on issues.

HAYS: Of course, one big issue for everyone is the economy, jobs. Economic news making a big splash in the campaign thanks to Greenspan and his thoughts on cuts to the most popular program in America, Social Security. I'm back ON THE STORY after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP) GREENSPAN, CHAIRMAN, FEDERAL RESERVE BOARD: Dramatic demographic change is certain to place enormous demands on our nation's sources. Demands we almost surely will unable to meet unless action is taken. For a variety of reasons that action is better taken as soon as possible.

(END VIDEO CLIP)

HAYS: Calm and cool as always, but the reaction to Federal Reserve Chairman Greenspan and his suggestion to cut Social Security was hot and heavy. He'd said it before, but suddenly the election year seemed to catch up.

Welcome back. We're ON THE STORY.

HINOJOSA: So, Kathleen, you know this idea that Greenspan wants to cut Social Security -- I mean, I heard on the street, oh, great, they cut taxes for the rich and make the poor work -- I mean, make the old work longer into their lives. Is that the cynical view or really what's happening here?

HAYS: It wasn't just on the street a lot of economists making that criticism here in Washington. People saying we had this $300 billion tax cut, fair enough. In his testimony, Greenspan said make those tax cuts permanent if Congress will pay for them. But one of the ways he suggests paying for them, again, is by raising the retirement age even further.

Greenspan said in his testimony the budget deficit -- President Bush saying he could halve it over the next five years, just isn't going to work. We're going to have something like 77 million baby boomers eligible to receive Social Security by the year 2011.

So the question is what do you do, what do you do to get the money? Greenspan has his solution. But a lot of people, too, I want to add, one more thing. This is the same Fed chairman who two years ago said this budget surplus is so big, we better start cutting taxes in support of the first round of tax cuts.

A lot of people are thinking, hey, Greenspan, you're trying to get it both ways. Maybe you got it wrong, and maybe the solution you're suggesting isn't the best thing. But it's a very important debate, obviously.

KAGAN: Kathleen, one of the biggest business stories of the week broke yesterday. The federal judge in the case against Martha Stewart dropping the most serious charge against her. But the domestic diva is not completely out of the woods yet, is she?

HAYS: No. But they've got to be breathing the hugest sigh of relief. The charge of securities fraud that Martha Stewart lied to the public, particularly to her shareholders, about whether or not she had sold ImClone stock on kind of an insider trading basis, to protect the shareholder value -- that was the securities fraud charge.

From the very beginning, the judge said, you know this is a very novel way of looking at what securities fraud actually is. This is the charge that carried up to 10 years in prison. The judge dismissed this. She still faces conspiracy, obstruction of justice, and those carry penalties up to five year.

Apparently, even if she were to be convicted of those other charges, there might be a way Martha could see no jail time at all. So, again, she has to be feeling a lot better as she waits for summations this week and then the jury deliberations.

MALVEAUX: Kathleen, I know we all kind of joked about community service with Martha Stewart. If your garden was done by Martha Stewart, how interesting that would be.

But I want to bring it back to the Greenspan comments and Social Security. Because one of the things that the Bush administration reacted to, very strongly, saying that, yes, they weren't going to go ahead and cut these benefits.

But what was really important was the fact that you had 2001, he was talking about this as a platform, the whole idea of these personal accounts with Social Security, having to pay for them, his own commission saying, look, you're going to have to make these cuts, somehow we'll have to adjust. And he dropped it years ago.

This is something the administration certainly doesn't want to take up during this election time and it is such a hot political issue.

HAYS: Of course, this is a very interesting solution, right? We all have 401(k)s, right? We're all thinking about saving for the future. So there are people who say -- and this is what some of Bush and his supporters say, why not have personal retirement savings accounts within Social Security. You know that 12 percent tax you pay it started out as a 2 percent payroll tax?

Invest that yourself, start when you're young. Despite the ups and downs of the stock market, you'll have money in the end. One thing, though, it's estimated it will cost $1 trillion to switch over from the current system, to this privately funded system. That's one issue.

And there are other people who say, look, Americans have already gotten battered by stock market investments do we really think this is such a safe thing? We need something that is safe and secure, that's why you don't want to take over Social Security away in that way.

WALLACE: Kathleen, are I'm curious, because you should have seen the smiles on the faces of the Democratic candidates after Greenspan did this. The was the day after, of course, the controversial gay marriage. They certainly wanted to change the focus, put it back to the economy.

There was Greenspan, and they pounced, saying, No, Democrats will protect Social Security. Are people on Wall Street saying that Alan Greenspan is sort of speaking the truth and it's time for the country to wake up and say, we just have to do something at some point in time?

HAYS: Well, you know, that's a good point, Kelly. Because, yes, something has to be done. That's their -- the system is going to face a short fall. When they talk about a Social Security trust fund, that's a fallacy. Basically, the government takes in taxes and it pays them out.

At some point, the Social Security system will be taking in less money then it has to pay out in benefits. So something has to be done. But I think what some people are critical of Greenspan for is saying, you're the man who support the tax cut. You still support make the tax cuts permanent. Why couldn't you, for example, change the payroll tax? Maybe employers should pay less of that, maybe someone else should pay more of that?

I don't think Greenspan was being so political toward either side. I don't think he meant to hurt President Bush or help him. Actually, one of the more interesting comment I got this week was from a trader was from a Chicago at the Chicago Mercantile Exchange, who said this kind of reminded him of Moses talking to the Hebrew people, saying, I've taken you as far as I can to the Promised Land. At some point you're on your own. And Greenspan maybe kind of issuing some warnings for the very, very long term.

Now, granted it happened in an election year, but just reminding everybody, whether you like my solutions or somebody else's, something has to be done.

KAGAN: Well, something will be done here in Hollywood tomorrow night. It will be Oscar night. We're talking Oscar gold. I'll be back with a wrap of what you can expect coming up after this break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BEN KINGSLY, ACTOR, OSCAR NOMINEE: It is totally new, my fourth nomination, and it is totally new.

(END VIDEO CLIP)

KAGAN: That was Ben Kingsley talking to me just a couple of weeks ago at the Oscar Nominee Lunch. He is nominated for his role in "The House of Sand And Fog."

If you're asking, is it Oscar time already? It's not just you. The Academy made the choice this year to move it up by about four weeks, deciding it didn't want to be the last awards show in town. So, it is early this year, but frankly, Hollywood is ready.

Last year's Oscars, completely overshadowed by the war in Iraq. It was very subdued, they didn't do the red carpet. They are ready to take back their big night and it is tomorrow night here in Hollywood.

WALLACE: Daryn, fair to say we all envy the job you have ahead of you. But give us a sense -- you know, the other award shows, we know the winners in those shows. Is the sense that those winners, likely to be winners again? Or should we expect some big surprises tomorrow night?

KAGAN: Well this, the whole process of moving up the Oscar night has completely thrown all the conventional wisdom out the window. It used to be, though, who won the Golden Globe that would affect the nomination. Now they're thinking that will affect who wins the big award.

One big category to watch here is best actor. That is the one that is really up for grabs. Sean Penn in "Mystic River" was considered almost a shoo-in. It is his fourth nomination as well. He's never won. But some other late contenders, Bill Murray in "Lost in Translation" and then just last weekend, at the SAG Awards, we Johnny Depp swoop in there, literally, and win for his comedic performance in "Pirates of the Caribbean". So, a lot of awards up for grabs this Oscar season.

HINOJOSA: Hey, Daryn, you're right, last year, it was -- the Oscars suddenly became so political. I can't remember seeing an Oscars that was so political until maybe the '70s. What about this year? Are politics just off the table? Or is it going to be expressed in different ways, people talking gay marriage, what's the issue, or is there none this year?

KAGAN: Well, this is Hollywood and people do have their issues out here, don't they, political and otherwise, Maria. You will expect -- almost expected statements.

We're hearing that a number of stars will be driving up in electrical cars, instead of the stretch limousines, to make a statement about energy conservation. You might see some making a statement about the troops in Iraq.

An interesting thing to watch here, and this is an overflow from what happened at the "Super Bowl" there will be a five-second delay. And Joe Roth, the producer of the show, told me yesterday that there will be a woman, a censor from ABC sitting right there in the control room with her finger over the button. She can push it at any time.

But the word is, she will only push it if it is something obscene, and they will not be trying to do any kind of censorship if someone comes out, I don't know, let's say, Susan Sarandon or Tim Robbins, they're known to make political statements. If there's any type of political statement, those will not be bleeped here in Hollywood, tomorrow night.

MALVEAUX: Daryn, it may be difficult to determine this, but what are the actors, what are their reactions to all of this? This 5 second delay and the "Super Bowl" with Janet Jackson? I mean, do they really feel like their expression, their moment, their night is really being put down or dampened somewhat?

KAGAN: Well, you know, I'll tell you another thing to watch -- because Joe Roth, again, the producer, made a decision this year -- Oscar, as the years has gone on has skewed older and they're not getting that key demographic group of the younger men. So expect more comedy.

They've put in comedy skits this year with people like Robin Williams, Will Ferrell, Billy Crystal is hosting, Jack Black, "School of Rock." These are the types of people you'll see on the Oscars tomorrow night. And they're looking for some of those outrageous moments.

What Oscar's going for, and the Academy is going for, and ABC is going for in ratings might be against what the censors are going for in terms of a cleaner show.

HAYS: I'm a big one for thinking that costuming, what you wear is very important. I always wear red on Federal Reserve days. But I want to know what you're wearing.

(LAUGHTER)

So, can you -- much more interesting in terms of the big night and what you think some of the great gowns are going to be, besides yours.

KAGAN: Let's talk about what you wear. I did not know you wore red on Federal Reserve day. I learned something today, Kathleen.

(LAUGHTER)

I will be wearing a gown by Vera Wang. It is a magenta, fuchsia color, I guess you could say. Pretty excited about it. You know have to go for the look, but we're also working. That red carpet is kind of some serious, physical work there. So, I'm excited about that. Some nice bling-bling from folks at Fred Lleyton (ph).

In terms of the big picture of what you'll expect to see, a lot of color. That's what we've been seeing at the awards shows coming up. Again, spring coming around the corner, glamour coming back, "jewel tones" is the key phrase you hear out here.

(LAUGHTER)

WALLACE: Daryn, quick question, though. It does seem as if this could be a good year for women. You have very strong women actresses, up for, you know, best actress, best supporting actress, even directors. Are you hearing some buzz this could be a year where -- you know, really strong for women at the Academy?

KAGAN: The big woman story is in the director category. Sophia Coppola, she is Hollywood royalty herself. Of course, daddy is Francis Ford Coppola. She is nominated for best director of "Lost in Translation". Incredible, ladies, when you stop and think, Sophia Coppola is only the first American woman ever nominated in 76 years of Oscar history for best director. And she's only the third woman ever nominated in this category. Will she win? Probably not. Because Peter Jackson will probably be rewarded for his trilogy, for the third part of "Lord of the Rings". But she is also nominated for best original screenplay. So, one of two things will happen, she'll either pick up best original screenplay or I'm sure that's not the last we have heard of the very young, talented woman.

HAYS: And when you say young, 26, 28, it's just amazing. She is a baby.

KAGAN: She is a baby, but look how -- she was in school -- for film school -- her first exposure to film, remember "The Godfather"? She played Michael Corleone's son, the infant. So she's been around the movies practically since the day she came out of the womb, so she's had some good training at home.

HAYS: There you go, bouncing on her daddy's knee.

From Hollywood to a dead serious political and human drama playing out in Haiti. We'll be back ON THE STORY with CNN's Lucia Newman in Haiti after the break and a check on the headlines.

(BEGIN VIDEO CLIP)

ANNOUNCER: Lucia Newman is CNN's Havana bureau chief and correspondent. Earlier she was CNN bureau chief in Mexico, Chile, Nicaragua and Panama. She has a communications degree from the University of New South Wales in Australia.

(COMMERCIAL BREAK)

COLLINS: Good morning, everyone, I'm Heidi Collins at CNN Center. Breaking news this morning in the case of the missing family from Yahoo County (sic), Mississippi.

Michael and Rebecca Hargon and their 4-year-old son, James Patrick -- you see them here -- have been missing since February 14, Valentine's Day. Law enforcement authorities now believe they are close to breaking the case.

With more on this now, we are joined by Warren Strain, public affairs director for the Mississippi Department of Public Safety. He's joining us by telephone from Smith County.

Warren, are you there? Can you hear me?

WARREN STRAIN, MISSISSIPPI DEPARTMENT OF PUBLIC SAFETY: Yes, good morning, Heidi.

COLLINS: What can you tell us about what's happening there? I understand investigators have been waiting for a search warrant. Do they now have that in their possession?

STRAIN: They do, in fact, Heidi. And it has just been within the past three or four minutes been affected on a place of business, a veterinary clinic, which is -- also doubles as a residence here in Smith County, near the town of Taylorsville.

COLLINS: Can you tell us who owns that office/home, if you will?

STRAIN: It is owned by a female by the name of Lisa Ainsworth (ph). The veterinary clinic, however -- she's also residing at this residence, is another individual. That individual is currently being questioned by law enforcement at the Smith County Sheriff's Department.

COLLINS: Is that individual now considered a suspect?

STRAIN: Well, at this point, we're just questioning him. And wanted to take a look inside the place of business and residence here, just to kind of sort through things.

Midday yesterday, the Bureau of Investigations, which is a division of the Department of Public Safety, developed some information in this very intense investigation that's been going on for two weeks now. That led us here to Smith County, where the search warrants are being affected, and the individual who lives here is being questioned.

COLLINS: Warren, can you tell us any more specifically exactly what type of information led investigators to this property?

STRAIN: At this point it would be premature to get into that.

COLLINS: OK. Any relation to the family here, as far as the people residing, or working in this property?

STRAIN: The -- as far as the Hargon family, it is a half-brother of Michael.

COLLINS: OK. Anything else you can tell us about that relationship?

STRAIN: Excuse me -- he's a cousin, I'm sorry. But not at this point.

COLLINS: I know you guys have really been working with a lot of tips. It has been, as you say, quite awhile, very intense, investigative work. How much information have you gotten from the public?

Strain: A good bit. We've had 400 leads come in to the task force, multi-jurisdictional task force made up of federal, state, and local authorities. We've had 400 tips that we've been working off of.

One of those tips, which was developed by the Bureau of Investigations, in terms -- in terms of interviews, has developed on out. We have also moved forward rapidly overnight.

And as these things go as much as a domino-effect-type situation, where we've had several hypotheses, one of which was this particular situation that we were talking about. And now we're moving forward with that. COLLINS: So this is -- If I understand you correctly, this is something that investigators had anticipated, going to this area?

STRAIN: Well, it was -- it was one of the different theories that had come forward.

COLLINS: All right. Can you break us down for us, Warren, the best that you can? How close would investigators be to solving this case?

STRAIN: We are very confident that we are very close to resolving the whereabouts of the Hargon family.

COLLINS: All right. We, of course, will keep our eye on this situation for our viewer.

I must want to recap quickly. We have been speaking with Warren Strain, public affairs director for the Mississippi Department of Public Safety. Telling us that investigators have now obtained a search warrant for some type of property in Smith County, in the investigation of the Hargon family, Michael, Rebecca, and James Patrick, who have been missing since Valentine's Day.

He also tells us, the headline here, investigators very close to solving this case. As we said, we will keep our eye on it very closely for you and bring you any more information, should it become available.

Warren, if you're still with us, thanks so very much for your time.

And for now, back to ON THE STORY.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will turn back any refugee that attempts to reach our shore. And that message needs to be very clear, as well, to the Haitian people.

(END VIDEO CLIP)

SUZANNE MALVEAUX, CO-HOST: President Bush, Wednesday, with a blunt message, that the U.S. Coast Guard will send back any Haitian refugees.

No word yet on any multinational military force. But Pentagon officials told CNN the U.S. was considering sending a three-ship task force with more than 2000 Marines to sit off the Haitian coast.

Welcome back. We're ON THE STORY.

And joining us now from Haiti, via videophone, is CNN's Lucia Newman.

Lucia, I want to tell you, first of all, that we commend you on your courageous work. You have been talking about people who have been massacred, beheaded, and all these type of things.

The Bush administration is under an incredible amount of pressure to intervene immediately. The Congressional Black Caucus going directly to the president this week. Also, the U.S. Coast Guard sending back more than 500 Haitians, back on that coast, to that country.

What are you seeing? What is the situation on the ground?

LUCIA NEWMAN, CNN CORRESPONDENT: It's very, very tense. It's chaotic. Anarchic may be the best word.

Certainly, yesterday, there was actually -- nobody has any control of this place. I mean, there were these gangs of thugs armed to the teeth in trucks, riding all over the city, roaming all over. Looting, robbing people, killing people, shooting them.

One man, in fact, was found castrated by a machete on the ground. Another reporter had a gun held to his head, while another Haitian was executed right in front of him.

At this, at the port, which was being looted by everyone who wanted to take whatever they could find. And the police were nowhere to be found, Suzanne.

KATHLEEN HAYS, CO-HOST: Lucia, question for you. What is the likelihood, or is there any likelihood, that President Aristide will heed growing calls for him to resign or leave the country and allow the political opposition to take control? Is that likely?

NEWMAN: If you listen to what he has to say, it's not likely at all. He, in fact, repeated this morning on Haitian state television that he wasn't going to leave under any circumstances. Out of the question, he said.

In fact, he said that he and his government were going to be back in the palace Monday morning, back at their offices, business as usual. But of course, as you know, there's nothing in this country that's business as usual. It's chaotic.

The rebels say that they've surrounded the city. We haven't actually seen them, but they've certainly caused havoc in the whole country. And they say that unless he gets out of the palace soon, they're going to march in and get him.

HAYS: Lucia, last week, the president sent some 50 Marines to guard the American embassy. There was some sense that the administration might send 2000 Marines to sit off the coast.

How is that playing into the situation? And is it helping at all, restoring the order? And how about the Americans and other people who are kind of stuck in Haiti now?

NEWMAN: I would say that that announcement really hasn't had much of an impact at all. Not here. Most Haitians probably don't even know about it. The political opposition is kind of divided. Some say that the Americans should come in and help restore order after President Aristide resigns. Others say no, all we need is for him to resign, and we'll take care of the situation ourselves. We don't need any more foreign interference. So it really depends on who you ask.

But the American citizens here are feeling very insecure. So are all foreigners. In fact, yesterday, there was despair at the airport. People trying to get out of here, but all flights have been canceled. People just can't leave here.

The border with the Dominican Republic is closed, too. So people are stuck. People who want to leave just can't get out.

We saw helicopters yesterday going to the embassy of the Dominican Republic, which is just very near here, where I'm speaking to you from, and they were ferrying some foreigners out of the embassy, taking them back to the Dominican Republic, but in very small quantities. They were small Huey helicopters so they can't take very many people.

So they're choosing the people whom they say most need it for humanitarian reasons.

MARIA HINOJOSA, CNN CORRSPONDENT: Lucia, you know, we're all reporters and we want to know what it's like to be working in a place like Haiti. And you were saying that you yourself were even held up at some point.

So can you tell us what is it like day to day for you as a reporter? How are you making the decision of what you're recovering? And how often are you able to get out on the street when it's so dangerous at this point?

NEWMAN: Depends on the day, really. Yesterday was very dangerous, I have to tell you. We were lucky.

We were -- Our crew was going down the main road and saw a truck load of these armed thugs coming towards the car, pointed a gun, but then we swerved off and we were lucky.

But other reporters were held at gunpoint. Some were robbed, bribed. An NBC car had the window broke within a rifle butt. People were very, very frightened.

And in the past, in other demonstrations where we had been, the pro-government people are very, very aggressive towards the foreign media. They think that we're on the side of the opposition.

We're not, obviously. We're here to report a story. But they were seen as that. So they're very aggressive towards the foreign correspondents. A Mexican reporter, in fact, was hit on the head with a machete. Thank goodness he was wearing a helmet.

But it's -- you have to play it by ear, really. MALVEAUX: And Lucia, I want to go back to one thing you said about, the State Department actually issued an announcement to Americans, essentially saying that they should hunker down and try to find a safe place, because there's just no way to get out of the country now.

NEWMAN: Yes.

MALVEAUX: But we want to thank you for your good work, and wish you good luck, to be careful. We'll all be watching ON THE STORY in the days ahead.

And from diplomacy to politics and how President Bush jumped into the race with both feet this week. Back on that story after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BUSH: For NAFTA and against NAFTA, for the Patriot Act and against the Patriot Act. In favor of liberating Iraq, and opposed to it. And that's just one senator from Massachusetts.

(END VIDEO CLIP)

MALVEAUX: President Bush this week, breaking out and directly take on Democratic front-runner John Kerry. Welcome back. We're ON THE STORY.

HAYS: Well, it's no wonder he's lashing out at Kerry and trying to get some hits in. Some people say the reason consumer confidence has fallen recently, a big drop in February, is because the Democrats have been beating so hard on the economy and jobs.

And other people say no, it's because jobs are lousy. Either way, Bush has got to be getting worried, and that's why he's on the attack now.

WHITFIELD: The campaign is essentially a jump-start for this group, because they were not expecting to jump in so quickly.

You'll see the rhetoric has changed, and it's more aggressive. You had President Bush out there taking on John Kerry's record and essentially -- why now? They don't know exactly what the transition is going to be like inside of Iraq.

You brought up a very good point. The economic condition, the jobs aren't coming as quickly as they would like.

And, also, we're going to see, two days after Super Tuesday, this huge blitz they've been talking about, campaign ads on television, more than $4 million worth.

And they're going to be hitting CNN, other cable networks, Fox, sports. They want to hit those NASCAR dads. They want to hit those people who are watching golf, all the sports, the big sports people. They want to reel them in as quickly as possible, because they have been hit hard over the last four months.

DARYN KAGAN, CO-HOST: Suzanne, the big statement President Bush making up to this point, coming out and making -- saying that he does support, in fact, a ban on gay marriage as an amendment to the contusion.

He made his big statement, called for Congress to act, and then we didn't really hear anything. It didn't seem like anybody on Capitol Hill picked up that ball. And President Bush, you haven't heard speak a lot about it since that big statement from the White House.

MALVEAUX: You know what's very interesting, was that if you watched the Democratic debates, and you heard Reverend Sharpton, got a huge applause saying that doesn't -- shouldn't matter who you go to bed with that night, but whether or not you wake up, the two of you have a job the next morning.

One of the things that the Bush administration reacted to was initially saying, yes, we support a constitutional amendment banning gay marriage, but then later softening the position. You heard President Bush coming out more, talking about supporting civil union, about respect and civility.

This is something where the Bush administration is really walking a very fine line. This is a very delicate balancing act. They want to support the social conservatives. They've been asking for this for months now. No surprise to them.

But also, according to the moderate base they want to say, look, we support civil unions, but we do not tolerate gay marriages.

HINOJOSA: You know Suzanne, I was actually up in New Paltz yesterday, where the 26-year-old mayor there from the Green Party started giving -- same-sex marriages. And tons of people came up, out of the blue really.

There's a lot of discussion in the gay and lesbian community, how much of this was a really planned and calculated strategy? How much is this people jus coming out and saying, I want to take part in what they call the new civil rights movement of the era.

But is President Bush set up at this point to really take on a culture war around the issue of gay marriage in this country?

MALVEAUX: You bring up a really good point. And one of the things is that the Democrats say that this is a cultural war, that this is a way of escaping dealing with some of the other issues: Iraq, the economy, and so forth.

What -- What is also very interesting is that President Bush, four years ago, essentially said that he believed that it was a state issue, that it was up to the states. Both he and Vice President Cheney have changed their tune. They say, because it's a direct reaction to what they're seeing in San Francisco and Massachusetts and other places.

HINOJOSA: Well...

HAYS: Suzanne, very quickly, let me -- I'm sorry, Maria, you go ahead. You go.

HINOJOSA: From the war -- well, from the White House politics to a very different story, the movie house, and how "The Passion" revved up emotions. I'm back on that story after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's the most awesome thing I've ever seen.

UNIDENTIFIED MALE: It was an unambiguous portrayal that the Jews were blood thirsty, the Jews were angry, the Jews were vengeful.

(END VIDEO CLIP)

HINOJOSA: A fan and a critic, as the new Mel Gibson movie "The Passion of the Christ" opened this week and prompted big crowds and big opinions about its spiritual power, its accuracy, its violence, its potential to kick up old prejudices.

Welcome back. We're ON THE STORY.

KAGAN: Maria, I've been -- I have not seen the movie myself yet. I've been fascinated, the people I talk to, people I interviewed, how different people can go and see the exact same movie and come out with a completely different experience and describe a completely different film.

HINOJOSA: That's exactly it, Daryn. It's the kind of movie that it's hard to make a generalization about.

It you are close to Jesus Christ and you want to get closer to him or feel the experience, you're going to go into this movie, and you're come out really identifying with what Jesus Christ went through.

I mean, it is a very painful -- really two hours. There's just no other way to describe it but painful, bloody, gory, difficult to watch, no doubt. Not something that you're going to want to take children to, even preteens to.

On the other hand, if you have issues around anti-Semitism, you might go into this movie and you're going to see what some people say are very stereotypical images of Jewish people.

One critic I spoke to said they were all ugly, with big noses and bad teeth and they all wanted -- they were all bloodthirsty. So it's very, very hard to come out with one opinion.

KELLY WALLACE, CO-HOST: Maria, give us a sense of the premiere. You said you were there. There has been so much attention to this movie, so much controversy. What was it like there on that day?

HINOJOSA: Nothing like a premiere that I've ever seen. There were -- Not a typical audience. A lot of religion folks who went in from one side or the other.

But what's weird is that you're supposed to be having a religious experience. There were people bantering about, you know, sit down, you jerk. Get off my seat. Move over. Which is just so strange.

The other premiere that I went to, there were people saying it was anti-Semitic. They were wearing concentration camp uniforms and saying Hitler gives the movies two thumbs up.

So very, very strange, drawing a lot of -- a lot of very divergent opinions out there.

HAYS: So, Maria, what about the buzz of what this means for Mel Gibson? Obviously, I think one of the cute quips is confusing prophet and profit. He's make a lot of money. The opening figures on this movie, incredible, although obviously, stacked with religious audiences.

HINOJOSA: You know, it depends. There's buzz in Hollywood among some who are saying they will never work with Mel Gibson ever again.

There are others who are saying he made a great movie. But it's showing profits so therefore, that's what works in Hollywood.

And still others who say, you know what this is the controversy of the moment, but it all might blow over and so Mel Gibson will be good to go in, who knows, a couple of months. It's hard to say at this point.

HAYS: It is. But whoever would have thought that another movie about Jesus Christ would be kicking up so much dust?

Well, President Bush gets his say in his weekly radio address. We're back ON THE STORY.

(COMMERCIAL BREAK)

MALVEAUX: Thanks to my colleagues and thank you for watching ON THE STORY. we'll be back next week.

Still ahead, "PEOPLE IN THE NEWS," focusing this week on Mel Gibson and his new movie, "The Passion of the Christ."

Coming up at the top of the hour being a check of the top stories. But first, the president's weekly radio address.

BUSH: Good morning. For many years, illegal drug use has been a serious problem facing our country. Drugs cost people their savings and their health and rob children of their promise.

My administration has taken action to confront this danger. We have pursued an ambitious, focused strategy to cut demand for drugs at home, interdict supplies of drugs abroad and treat more addicts who seek help.

In 2002, I set a goal to reduce illegal drug use by 10 percent over two years and by 25 percent over five years. This Monday, we will release the annual National Drug Control Strategy, which shows the impressive progress we have made.

Youth drug use declined 11 percent between 2001 and 2003, meaning 400,000 fewer young people used drugs. These results exceeded our goal and proved that our hard work is paying off.

This year, we will expand our strategy so that we can make even greater progress in the fight against drugs.

The best way to cut drug use is to cut demand for drugs at the ground level. So my budget includes a $10 million increase for drug- free communities, a common sense prevention program that supports local coalitions working to stop young people from using drugs.

Research shows that teenagers who abstain from drugs are unlikely to start using them later in life. So I have asked Congress to provide an additional $23 million for high schools who want to develop and carry out drug testing programs.

Random drug testing gives students a strong answer to the social pressure to try drugs. It helps schools identify those using drugs so they can intervene with counseling and treatment before experiments turn into addictions.

We've seen the positive results of drug testing across the country. Just two years after Hunterdon Central Regional High School in New Jersey began its testing program, drug use had declined significantly throughout the school.

Hunterdon's principal described the program's effect this way: "We have never seen a prevention curriculum that affected the numbers this substantially. We finally had a tool that was making a large difference."

As we reduce demand for drugs, we're also preventing drug supplies from entering our country. Our military and law enforcement personnel are targeting the world's most dangerous drug trafficking networks. We're dismantling these organizations and putting their leaders in jail.

And by working with governments across our hemisphere, we're drying up the world's supply of illegal drugs at its source.

Finally, we are taking steps to help those who have fallen into the destructive cycle of addiction. Drug dependence undermines productivity as well as moral conviction and devastates millions of families each year.

Some addicts recognize their problem and want to change but cannot afford access to professional care. To help men and women like these, I've launched an initiative called Access to Recovery. This program will help thousands of Americans get the treatment they need.

And because I know a good way to change a person's behavior is to change their heart, faith-based treatment programs will always be an option. Congress has provided $100 million for this lifesaving program, and this year I have asked them to double that amount.

The progress reported in this year's Drug Control Strategy is encouraging. Our goals are ambitious, and we have seen they can be achieved. Now we will build on the improvement of the past two years. And we will continue working toward a society in which all citizens can lead a life of independence and purpose, free from the devastating influence of drugs.

Thank you for listening.

MARTIN SAVIDGE, ANCHOR: I'm Martin Savidge at the CNN Center in Atlanta with the headlines at this hour.

Prayer interrupted by violence. A suicide bomber attacks a Shia mosque in Pakistan. Police say people were praying when the explosives were detonated in Rawalpindi. There's been no claim of responsibility yet.

Haiti on the brink of anarchy. Rebels there claim that they have surrounding the capital of a Caribbean nation in their bid to oust President Jean-Bertrand Aristide. There have been lootings -- rather, burnings and killings in Port-au-Prince. Meanwhile Mr. Aristide vows to stay in office.

In Iraq, American soldiers killed suspect attackers in Mosul. The military says the suspects were involved in a drive-by shooting at an Iraqi police traffic stop in northern Iraq. Also in Mosul, U.S. soldiers arrest three people after homemade bombs were found.

Back at home, yielding to pressure, House Speaker Dennis Hastert, will now give the 9/11 Commission a 60 day extension to turn in it's report. Hastert had opposed an extension on the May 27 deadline. The panel and family members of the victims demanded that extension.

I'm Martin Savidge at CNN Center. A look at faith that drove Mel Gibson to make the controversial film "The Passion of the Christ" on "PEOPLE IN THE NEWS."

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





in Haiti; Bush Jump Starts His Campaign; "The Passion" Spurs National Debate; Bush's Radio Address>