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How Much Did Condoleezza Rice's Testimony Help Bush Administration? U.S. Seeks Iraq Truce Amid Renewed Fighting

Aired April 10, 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.


FREDRICKA WHITFIELD, CNN ANCHOR: Hello, I'm Fredricka Whitfield at the CNN Center in Atlanta. ON THE STORY coming up next. But first, here's what's making news at this hour.
Australian TV is showing this footage of a man, apparently an American, being held hostage by masked, armed men in Iraq, in the backseat of a car. The man says -- quote -- "They attacked our convoy. That's all I'm going to say." He's believed to be one of those who has been missing since a fuel convoy was attacked yesterday near the Baghdad Airport. Others are also missing.

Germany's foreign ministry confirms that two security people assigned to its embassy in Baghdad are missing. The men were part of a convoy that was attacked while traveling from Amman, Jordan to Baghdad. A government spokesman says he can't rule out the possibility that the men are dead. A coalition news briefing is planned at 11:00 a.m. and CNN will be bringing that to you live out of Baghdad.

Televised images of three Japanese hostages in Iraq have provoked large anti-war demonstrations in Tokyo. Abductors say the hostages will be killed tomorrow unless Japan withdraws its troops from Iraq, which Japan says it will not do. But the protesters are pressing their demand that the troops be withdrawn to save the hostages' lives.

The protests in Japan coincide with the arrival of Vice President Dick Cheney in that country. He's scheduled to meet with Japanese leaders on Monday.

Those are the stories making news at this hour. I'm Fredricka Whitfield. ON THE STORY 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 we covered this week. I'm Suzanne Malveaux in Crawford, Texas, ON THE STORY of national security adviser Condoleezza Rice testifying before the 9/11 commission. And the fallout.

JOSIE BURKE, CNN SPORTS CORRESPONDENT: I'm Josie Burke in Augusta, Georgia, ON THE STORY of the Masters golf tournament, where Tiger Woods is lurking and Martha Burke isn't.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: And I'm Susan Candiotti in Miami ON THE STORY of the legal tug-of-war going on between state prosecutors and radio talk show host Rush Limbaugh over the right to look at his medical records. KELLY WALLACE, CNN NATIONAL CORRESPONDENT: And I'm Kelly Wallace, ON THE STORY of Democratic presidential candidate John Kerry back on the campaign stump after a brief medical detour and now blasting President Bush on job, taxes and Iraq.

Also coming up, we'll go to Jane Arraf in Iraq to talk about the Sunni and Shiite insurgencies and Iraq one year after the fall of Saddam Hussein's government.

We'll also talk about reaction from some of the September 11 families to Condoleezza Rice's testimony.

And CNN medical correspondent Holly Firfer will talk about the boom in cosmetic foot surgery for women, all to accommodate those very high-heeled shoes.

We'd also like to hear from you. E-mail us at onthestory@cnn.com.

Now straight to Suzanne Malveaux in Crawford, Texas, and Condoleezza Rice and the September 11 Commission.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: There was no silver bullet that could have prevented the 9/11 attacks. In hindsight, if anything might have helped stop 9/11, it would have been better information about threats inside the United States.

(END VIDEO CLIP)

MLAVEAUX: National Security Adviser Condoleezza Rice before the 9/11 Commission, making the administration's case that there was nothing that they could have done to prevent the September 11 attack.

I'm on that story -- quite a controversial one on Thursday. All eyes on Condoleezza Rice. A lot of questions coming out of it. Some Democrats and critics say perhaps more questions than answers.

BURKE: And Suzanne, a lot of questions about that PDB, that presidential daily briefing from August 6, 2001. You've got some new details about what was contained in that.

What can you tell us?

MALVEAUX: Well, sources who I've spoken to have given us some of the highlights of that top-secret, presidential daily brief. And one of them that stands out is in May of 2001 -- as you'll recall, this was a brief that was given to the president a month before the September 11 attack. But it was in May in 2000 of 1 that they had word al-Qaeda operatives were trying to get into the United States to carry out some sort of attack using explosives.

This was something that was alerted to an intelligence, as well as law enforcement officials. But it really goes to the heart of what Democrats and even some of the commissioners asked Rice over the week. And that is, she made the case that this is a historical document, that there were not the kind of details provided that would allow them to foresee September 11. You look at May 2001. Some say, Well, that's a different definition of historical; that perhaps that recent information -- they could have used and, in combination, have done more.

CANDIOTTI: Suzanne, I think there are a lot of people who are wondering, is there any danger in releasing some of this information contained in these previously classified briefings? They could be giving away state secrets, in effect.

MALVEAUX: Well, certainly, it's a long and involved process, and there are a lot of -- I've spoken with a lot of commissioners, a lot of sources, who say they are trying to work this out. They need to protect what's called sources and methods of intelligence, essentially make a whole bunch of phone calls, check some facts, perhaps even redact some of the documents to make sure that they are protecting people.

My sources saying, Look, the highlights we're giving you are not going to burn any sources. You're OK on this. This is something we expect is going to become public, perhaps in the next couple of days. It is something that the White House and commissioners are vigorously working on because both sides want to get their story out to the public as quickly as possible.

WALLACE: Suzanne, take us behind the scenes a little bit before Condoleezza Rice's testimony, because a number of the families who lost loved ones in September 11 were a little disappointed that they didn't get an apology from Condoleezza Rice and that they feel like they didn't even get some claim of responsibility, some sense that, My goodness, we could have done better. What was the thinking behind the scenes about her approach in that regard?

MALVEAUX: Well, Kelly there really was a lot of thinking behind that, because, as you know, Richard Clarke made that dramatic apology. And a lot of people sat up and took notice with that. As you know, the families as well.

The thinking and the debate within the administration was that if Condoleezza Rice was to go forward and do that, that it really would be an admission here that the administration was at fault for the September 11 attacks, that rice needed to say something, that she acknowledged the pain of the families and of the country. But what they're trying to emphasize is they say, Look, we're in this war on terror. We think that the best way to acknowledge and honor those families is to move forward.

One thing I should also let you know as well is that the Bush campaign, really, they say, Hey, we think that Rice did a good job. But they want the American voters, the people, to focus on what the president has done the last three years, after the September 11 attacks, as opposed to the eight months prior. They think that that record is very strong.

BURKE: Suzanne, can you tell us how closely the president watched while it was going on, live -- Condoleezza Rice's testimony -- and what his reaction was when it was all over? How'd she do, in his eyes?

MALVEAUX: Well, as you know, the president is at his Crawford ranch for the Easter holiday. And we are told that he and the first lady were at home at their Crawford ranch. They watched all three hours of the testimony. He giving a tour to some environmentalists. He was in his pick-up truck, and he called Condi on the phone to congratulate her. He couldn't get through the first time. We are told that the line was busy. So she called back, and he congratulated her, said, You did a great job. We're -- you know, we're all very proud of you. You articulated our message well.

Of course, there are others who say, Look, you know, this is far from over, because next week, what you're looking at is the intelligence officials, Justice Department officials -- they're all going to be in the hot seat and these questions are going to come fast and furious, as we've seen Thursday with Dr. Rice.

CANDIOTTI: And, of course, Suzanne, coming up next week, you have important testimony coming up from the attorney general, right?

MALVEAUX: Absolutely. You're looking at John Ashcroft, who is going to go first, and then Janet Reno, then George Tenet of the CIA, and Louis Freeh, his predecessor (sic).

And the big question here that came out of the testimony, one thing that Rice talked about time and time again, is that she did admit that this administration and previous administrations had a problem, a structural problem, she says, with the FBI and the CIA communicating with one another, that because of legal barriers and just a culture, that they weren't really sharing information. And that was one of the main problems to not seeing the September 11 attacks. So there's going to be a lot of hard questions, especially to those intelligence officials.

WALLACE: And Suzanne, of course, we are in a presidential election year. What's the sense from your sources about how the White House is feeling about President Bush, his handling of the war on terror, after Condoleezza Rice's testimony? I mean, how worried are they about this issue impacting the president in the months ahead?

MALVEAUX: You know, Kelly, there are two things that they're worried about.

First and foremost, if you look at the situation on the ground in Iraq, the way things have deteriorated. This is a president running on his wartime record, and they really want people to believe -- the allies, American people, the Iraqis, that this is going to work in transferring power. And they've been trying to shore up that support. That is the first thing.

The other thing with Dr. Rice's testimony here is they believe she did a good job, but they have to make the case. We've seen polls that have mixed result it is here about whether or not President Bush or Rice is more trustworthy, or whether or not they believe the White House really has a strategy to deal with Iraq.

That is something they know they have to work on. It's going to be very interesting to see in the months to come, especially when you have that turnover in Iraq, just how the administration is going to portray its message.

CANDIOTTI: Suzanne, you know, aside from the politics of all of this, the commission -- why do its members and others think that it is important to go over what happened on September 11 to the degree and to the detail we are? What is the end result?

MALVEAUX: Well, what's interesting is that they -- of course, they want to prevent another a tack like this from happening. The reason why you're going over the kind of detail here is because essentially what they're saying, is there was a lot of information out there -- a heck of a lot of information. And there was a failure in connecting the dots here.

I don't think that what they're seeing is that this individual or that individual was responsible, but that really it was systemic, and that it crosses both administrations. That is what they're trying to get at here.

As you know, too, they want to also present as best a public record as possible, and that is why you have that big, big fight over getting Dr. Rice in front of those cameras to make the case. They had already heard many of these argument, but, as you know, there were some contradictions between Rice and her deputy, Richard Clarke. But more so, they really want the American people to know that they are using as much information they can to come up with some sort of recommendation so this doesn't happen again.

WALLACE: Suzanne, moving from the September 11 investigation to another issue -- the administration's certainly watching very closely the fight for Iraq. Coalition forces now facing both Sunni and Shiite unrest.

Jane Arraf is on that story when we come back. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DAN SENOR, COALITION AUTHORITY SPOKESMAN: As we get closer and closer to June 30, as we hand over sovereignty here, there are going to be these bump notice road, where mobs of -- violent mobs and two- bit thugs are going to try to throw this process off course.

(END VIDEO CLIP)

WALLACE: And that was coalition authority spokesman Dan Senor, commenting on what's been a very bloody week for both coalition troops and Iraqi civilians.

Welcome back. We are ON THE STORY.

This week, coalition forces were facing attacks from both Shiite and Sunni fighter.

Joining us now by videophone from Kut, Iraq, with the U.S. Army's 1st Armored Division is our Baghdad bureau chief, Jane Arraf.

Jane, thanks for joining us.

First question -- what is the status right now of the U.S. Army trying to take control of Kut?

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Well, they say, Kelly, that they have control of 60 to 70 percent of the city. Now this is after two nights of fierce fighting in some places.

Early this morning, before dawn, they took control of the radio and TV station and a key bridge. They say they now control access to the entire city, and they are gearing up for another night of fighting tonight.

We were out in the streets of Kut, where it's relatively calm. People are just starting to come out. And many of them said that they have been intimidated by Muqtada al-Sadr and his militia. But others said that there were reasons that he has some support. It's a very poor area and there's quite a lot of discontent here -- Kelly.

MALVEAUX: Jane, the Bush administration has really marginalized these groups. We know that Shia and Sunni are both fighting right now. But they say that this is a bunch of thugs and terrorists. Can you give us a sense of how big this group is, or how significant, when you look at the larger Iraqi population?

ARRAF: You know, it's really interesting, because when you look at the numbers, they're not huge numbers.

Here in Kut, which is a city of 300,000 people, we're talking about 500 fighters at the most. And when the initial battle started, there were perhaps just a few dozen who were actually fighting against the U.S. troops.

And we have to remember, there's a phenomenal story as well involving the 1st Armored Division. They were due to go home. Some of them were on their way home. And instead of going home, they were re- deployed, sent out to fight these battles.

So the numbers that they're fighting against aren't huge, but one of the things that has helped make a big impact is that the Muqtada (ph) army took control, police stations, and in some cases the police just melted away. It's been a big problem, the lack of Iraqi police, the lack of Iraqi civil defense forces. The army has not had a lot of help in combating the Muqtada (ph) army.

So even though the numbers aren't very big, they've had a big impact in many places.

CANDIOTTI: Jane, this is Susan Candiotti talking.

I'm wondering about this new, very frightening aspect of the war, and that is the aspect of hostage-taking, that we heard about this week with the Japanese. And now we have this missing American, for example.

How much more dangerous of an indication is this, in what's happening over there?

ARRAF: You know, that's a great question, and it's really hard to tell.

I guess from the vantage point of discouraging people -- companies, particularly, foreign investments, from coming here -- it is a brilliant tactic if you're going to use that. Because there's almost nothing that scares people more -- not suicide bombs, not rocket attacks, that fear of being held hostage, I think. Among a wide variety of groups -- they have taken Arabs hostage, is really very chilling.

Does it make things more dangerous? Perhaps it makes one more cautious. But I'm really curious about the impact of this. It seems that it is having an extraordinary impact on the United States. Do you think this could be a turning point in the way people feel about how dangerous it is here?

BURKE: Jane, are there indications that the Sunni militia and the Shiite militia are actually, in some places, joining together?

ARRAF: Again, that's something that everyone has feared. But we haven't really seen evidence of it, nor have we heard of evidence of it.

What we've heard of is some anecdotal evidence, that in some cases there is sympathy on that basic level, where people are enraged enough at the United States and at the military that they are supporting whoever is fighting on their territory.

But the thing that many have feared, that broad-brushed cooperation from the highest levels that would unite the Shias and the Sunnis so far doesn't seem to be happening. I mean, again, this has been, as you've all mentioned, an extraordinary week, with the United States fighting these battles, political, and military, on so many fronts. And one of the things it fears is that it could spread if there is a lot of widespread support.

But what it continues to say is, now, a pretty localized problem in some places.

WALLACE: Jane, you're there, of course, with the U.S. Army's 1st Armored Division. You're talk to the men and women.

What's their sense of the situation? Are they surprised by the resistance? And what's their morale like now?

ARRAF: Well, I think when we're talking about morale, we have to understand that each and every one of these people had been expecting to go home. They have packed up their stuff, they've packed up their photos, they've packed up their television sets, they've sent them home. They have told their wives and husbands and children they are going to be home. Now they have to make that phone call saying, Guess what? I'm not going to be home for a while.

We're talking about three months from now, another deployment of three to four months for these people. So morale in that sense is not the greatest. But at the same time, you do hear from a lot of them that this is the reason that they're here, and if they didn't finish this, if they didn't fight these people, then that would simply leave it for the next people coming in. So it's an interesting combination.

As for the insurgents, they are relatively small numbers, but, really it has been driven home to them that they have to stay until this is finished. And that means several months. And we are getting into summer, so that's another reason that morale could suffer a little bit more.

But, again, extremely motivated, just very sad they're not going home right now.

BURKE: Jane, thanks so much for taking time out to talk to us this morning. We want to urge you to, number one, stay safe, and, number two, can you tell us where you'll be and what stories you'll be covering in the days ahead?

ARRAF: You bet.

We are going to be following what's going on in Kut. They're expecting to continue their operation this evening. And we'll be going out on that to see what happens. They're going to try to retake the rest of the city.

Back in Baghdad, of course, there's an awful lot happening. And we will be back there, following up those political developments. We're heading -- we are racing towards that deadline for the U.S. to hand power back, as well as Fallujah, all sorts of things going on, as you know, hard to keep up. But we're going to be covering military, political developments, basically, wondering if this is really going to work, before that deadline, June 30.

BURKE: Thanks again, Jane. And do stay safe.

From the grim reality of Iraq, we're going to now turn our attention to a much more pleasant rite of spring here in this country, and that's the Masters. I'm back on that story in just a moment.

(BEGIN VIDEOTAPE)

ANNOUNCER: Josie Burke is a correspondent for CNN Sports. She joined CNN in 1998. Earlier, she covered the Dallas Cowboys for the Fort Worth Star-Telegram. She graduated from Harvard.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP) ARNOLD PALMER, GOLFER: It's time. I won't say I'm happy it's done -- it's time for it to be done, for me.

(END VIDEO CLIP)

BURKE: Golf's first major, the Masters, got off to a bittersweet start, with 74-year-old Arnold Palmer, who is playing in his 50th consecutive Masters, calling it quits, saying that it was his last Masters.

Today, the rest of the golf professional world gets down to business, trying to win the most coveted prize in all of golf, an ugly green jacket. I'm back on that story.

CANDIOTTI: Well, Josie, so much for the ugly green jacket. I've got a green shirt on, anyway.

But it will be -- it will be strange not seeing Arnie, Arnold Palmer, out on the golf course any more, after having grown up watching him over the years. It will be sad seeing him hang up his cleats.

But I guess he'll stay play some kind of a role, possibly at the Masters, right?

BURKE: Yes, they have position of honorary starter. He's considering coming back to do that. He said he'll come back, even if it's just to sit on the verandah up here by the first tee, have lunch and watch everyone else struggle to conquer this course.

And what's interesting about Palmer is that he was so connected with this tournament. Other guys won it more -- he did win it four times, but a big part of his connection was the rapport that he had with the fans and the fact that he started winning when television got big and he was such a captivating television presence that he blew up with television. And when I say blew up, I mean in a great way -- really became a celebrity because of it.

MALVEAUX: And Josie, I know there are a lot of fans, but last time around there were some big protests as well because it's all male.

What are we seeing this year? Do you see that kind of protest this time around?

BURKE: Well, last year there was a very visible protest. It was held on Saturday, when they played the third round here. It did not go over well. It was very underattended and it was almost -- almost became a joke a little bit.

Totally different tactic year. The organizer of that protest, Martha Burke, announced this week that she's hired a lawyer, a very famous civil rights lawyer, to look into gender practices of eight big companies on Wall Street. And those eight big companies just happen to have top executives who are members here at Augusta National. So we're not hearing too much about the story this week, but it's certainly not something that's going to go away, because she's starting a different version of this battle.

WALLACE: Josie, of course, we can't talk about golf without talking about Tiger, Tiger, Tiger. He's been in a slump. What are they saying, experts, about why he's been having some many problems lately?

BURKE: This was so interesting, Kelly, because there were a couple of different theories that were being floated.

Number one, was the sort of grounded -- in what you saw on the golf course, that Tiger Woods' swing didn't look all that great and maybe it had something to do with the fact that a couple years....

WALLACE: Hmm. I think we have lost Josie Burke there, who is now with us -- she was telling us a little bit about some problems with Tiger Woods' golf swing. But she also had another theory she had been hearing from some people that some people are speculating that he's now engaged and that perhaps he might be a little distracted.

Josie, are you there back with us?

BURKE: I'm back with you. Do you have me, Kelly?

WALLACE: I do. I was trying to paraphrase your great reporting, which is terrible for me to do.

Pick up on why...

BURKE: I heard you. You did a good job.

WALLACE: All right, you're so very kind.

What's this about...

(CROSSTALK)

WALLACE: Could he be distracted by being engaged?

BURKE: Yes, this is something that he has had to answer a question about.

Last November, he got engaged to his sweetheart, Elin, and his game, since then, some people have correlated poor play with the engagement, making this commitment. Maybe he's distracted, maybe he doesn't care as much.

He disputes that wholeheartedly. He says, look at Jack Nicklaus, happily married, won all these majors because he had balance. I think being happy in my personal life and being fulfilled is actually going to help me on golf course.

So he definitely says that's not the case. But I think it's interesting because it's sort of like equal opportunity sexism. You always hear about women being criticized after they have a baby or after they get married, maybe losing their edge in the golf course. And here it's happening to a big guy out on the professional golf tour. WALLACE: We love that, equal opportunity criticism.

Josie, sorry we had some technical problems. Thanks so much for joining us. Tell us what's ON THE STORY for you, of course, in the day and days ahead.

BURKE: Well, everyone's going to be watching this tournament very closely.

And one interesting story we didn't talk about, the sentimental favorite here is a guy who is one of the best golfers on tour, Phil Mickelson, has never won a major. He is in contention. I think there are going to be a lot of people out here lining the fairways, pulling for the lefty, Phil Mickelson. And that's a story that I'm going to be following.

WALLACE: Well, Josie, we'll be watching all your fabulous reporting. Enjoy the weather there. Thanks again.

And we are moving from the links to the campaign trail and the buzz when it comes to Democratic presidential candidate John Kerry's search for a vice president.

I'm on that story when we return, but first being a check of what's making headlines at this hour.

WHITFIELD: Hello, I'm Fredricka Whitfield. Here's a look at the top stories at this hour.

A search is under way in Baghdad for two members of an elite German security team assigned to the embassy. Officials say they were part of a convoy driving from Amman, Jordan, to Baghdad. Other members of that convoy made it safely to the German embassy. A coalition news briefing is planned at 11:00 a.m., and CNN will bring that to you live, as it happens.

Australian TV is showing footage of a man who says he is an American taken hostage when his convoy was attacked. He's believed to be one of those missing after a fuel convoy was attacked yesterday near the Baghdad airport. Other soldiers and contractors are also considered unaccounted for.

Military officials are offering a cease-fire after a week of fierce fighting in Fallujah. The U.S.-led coalition is hoping militants will stop their attacks and allow for a transition to Iraqi control of the city. The offer comes one day after U.S. marines stopped firing to allow Iraqis to bring in supplies and bury their dead. The cease-fire offer comes a day before a Muslim holiday.

Those are the top stories at this hour. I'm Fredricka Whitfield. ON THE STORY is back in a moment.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP) SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We've made it through the spring training. We've made it through the regular season. We're in the playoffs. And I intend to win the World Series in this effort this year.

(END VIDEO CLIP)

WALLACE: And that is the presumptive Democratic nominee, John Kerry, signaling that he's ready to wrap up his challenge to President Bush after taking a brief hiatus from the campaign trail for shoulder surgery.

Welcome back. I am ON THE STORY.

And joining us all now is CNN medical correspondent Holly Firfer in Atlanta.

Holly, nice to see you.

HOLLY FIRFER, CNN MEDICAL CORRESPONDENT: Good morning, Kelly.

Question for you. You know, it's been a busy week, from Iraq to the 9/11 hearings, and Kerry had a major economic speech, a major economic message that sort of got lost.

What does he need to do to bring himself back into the forefront in this political election year?

WALLACE: He definitely wanted, Holly, to try and come back aggressively, criticizing the president when it comes to the budget deficit and tout his own economic plan, how he says he will cut the deficit in four years.

It definitely did get lost because of events in Iraq and because of the investigation into the September 11 attack. His aides say he will keep talking about the economy, and that when he travels around the country, to places like Illinois and Wisconsin, you'll have a lot of local reporters who were there, and they are reporting the story on their local stations, in their local papers. So it is getting out, and that message is getting to voters.

But you are seeing the senator talking more and more, even, about Iraq, and I am, you know, hearing from some sources that there's some discussion about whether the senator might, in the days ahead, want to do another Iraq speech to reiterate his own policy when it comes to the situation there.

MALVEAUX: And Kelly, tell us why he hasn't really talked that much about the 9/11 commission, the testimony of Dr. Rice and Richard Clarke. It seems as if he's kind of shied away from that a little bit. He wasn't as forthcoming. A lot of questions kept coming at him, and he really kind of stepped back a little.

Why do you suppose that's the case?

WALLACE: Politically, Suzanne, his advisers say they don't really need him or want him to step into this.

This is a controversial issue, as you know, from your vantage point. The White House is taking a lot of heat about this; President Bush is on the hot seat about it. And so they feel they don't need John Kerry to step into this and being accused of politicizing what is, obviously, a very important investigation.

So you did have him talk a little bit about the drum beat to call Dr. Rice to testify. He did sort of say she should come forward. But since then, he's saying, Look, it's a process. I'll wait for the report. I'm not going to comment. Really, mainly, a political reason there.

CANDIOTTI: Kelly, this week, we've been starting to hear more and more about choosing his vice presidential running mate this early, which of course is unusual. Can you talk a lot about that and who are some of the names you're hearing?

WALLACE: It is unusual, Susan, because one thing we are hearing, that people will sort of confirm, is that there is a sense of trying to announce this earlier than ever before, maybe as early as May. Part of that reason is to get extra help on the campaign trail to raise money. But also, you have President Bush and Vice President Cheney out there, criticizing John Kerry. So his advisers would like to get some help from the vice presidential candidate to criticize President Bush and Dick Cheney.

Of course, the Kerry campaign, the senator himself, saying, We are not talking about this. We are keeping this secret.

But some names out there that appear to be some of the top contenders, some former presidential candidates. We have John Edwards, who has been out there talking quite a bit on John Kerry's behalf. Dick Gephardt, the former Missouri congressman. You also have governors, like Bill Richardson and Tom Vilsack of Iowa.

And then a name that just gets so much buzz is John McCain, the Republican senator of Arizona. Some campaign advisers talk about this in some way, like, Wouldn't it be so amazing if you had that on the ticket? But John McCain keeps saying No way, no way, I'm not interested. That hasn't stopped reporters like ourselves from continuing to talk about it.

FIRFER: Kelly, I have a question for you. What about -- what does John Kerry need to do to sort redefine himself? He was gone for a while with shoulder surgery. Does he need to get a little more aggressive and make himself stand out?

WALLACE: One thing, Holly -- it's a great question, because one thing you're hearing, even from Democrats, some concern that you look at some polls and Americans say they just don't know much about John Kerry, and there is concern that John Kerry is letting Republicans define him, and he needs to define himself.

What many people believe he needs to do is sort of what he's trying to do now, is get out there, tell the American people, not just what President Bush is doing wrong, and what -- the problems with the Bush administration, but his plan, what he would do, as president. He did that in a big speech on the economy this week. He did it -- another economy speech not too long ago. Aides say he's going to continue to do that as he travels around the country with his plan, both on the domestic and international policies. And Democrats say the time is now, he needs to do it now, over these next few weeks, as more and more Americans are paying attention.

MALVEAUX: Kelly, you look at him now, and you wonder, How is he going to hold up for any of the months to come? I mean, take -- I look at pictures of him, and sometimes he looks great and other times it looks like -- you know? It's -- he's getting tired here (ph). And he's got a long way to go.

Do they have a strategy? I mean, this is a long-term project here.

WALLACE: It is. It is.

And that is why they say even though he was criticized for taking some downtime -- he was skiing and snowboarding in Idaho -- just as you know, President Bush was out there ramping up his general election campaign. They say that he needed some rest. And I know, I covered him for quite a long time. When you get tired, you know, you're run down, you might not be as sharp on the campaign trail. So he needed some rest.

They say they're going to try to and get him out there as much as possible, Suzanne, and then take, you know, periodic breaks. Like this weekend, it's the holiday Easter weekend. He's up in Boston, try to recharge his batteries.

But they're prepared, Suzanne. They know that this is a general election season like no other, that we haven't seen in a long time. So they're keeping their bags packed and they expect him to be on the road.

And you heard him in that opening. He says he's ready and we'll see in the months ahead.

(CROSSTALK)

MALVEAUX: And I'm sure your bags are packed, too, huh, Kelly?

WALLACE: Yes, so are yours, right?

MALVEAUX: Always. Always.

FIRFER: That will keep both of you busy, I'm sure.

WALLACE: Yes, it will.

FIRFER: Well, from the rough-and-tumble world of politics to new frontiers in cosmetic surgery, and the growing number of women willing to go under the knife for a pretty pair of shoes.

I'm ON THE STORY when we come back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I built my practice on being -- on patients being able to wear any shoes. And I think women -- it's like saying to someone "don't have chocolate." You know, women certainly consider shoes an important part of their wardrobe.

(END VIDEO CLIP)

FIRFER: The Institute Beaut's (ph) Dr. Suzanne Levine (ph) talks about the booming business of cosmetic foot surgery. More women are turning to the procedure because they're just not willing to part with a good-looking pair of high-heel shoes.

Welcome back. I am ON THE STORY.

MALVEAUX: Holly, I know a lot of people. They've gotten their noses done, their eyes done, a little nip, tuck here and there. I don't know anybody's who's gotten their foot done. How prevalent is this?

FIRFER: You would be surprised. A lot of women are doing this. It's becoming more popular.

You know, "Sex and the City," the HBO show that made Manilla Blanick (ph) and Jimmy Choo a household name. Women want to wear these shoes, high heels, pointy toes, and your feet are not meant to go that way.

We've heard such crazy things as women cutting down toes to fit in shoes, but more likely to have a bunionectomy, bunion surgery, which shaves part of the bone by the big toe to fit into the shoes. Women are getting Restalin (ph) or Botox injections. Restalin will boost up collagen into the heel to make it more comfortable, Botox to stop the sweating.

There's such a thing as toe cleavage even -- who knew? But women are doing it? Why?

CANDIOTTI: Holly, you've given me an idea. I'm going to try to work -- I'm going to try to work the word bunionectomy into a sentence sometime today. Thank you. OK.

I wanted to ask you about all these extreme makeover shows that are so popular these days. I mean, they certainly look inspiring and inviting for a lot of people. Hey, I'd like to get something like that done.

But what's the possible downside to it?

FIRFER: You bring up a great point.

We see these shows, like "Extreme Makeover," the one the other night, "The Swan," where they turn these women into so-called beauties, and they compete in beauty competitions. But what you're see is three to six months of major surgery, and recovery, condensed into one hour. So it makes it look like, Hey, I could do this. I could go under the knife and come out looking like Suzanne Sommers or Christie Brinkley.

But the problem, this is major surgery. There's major recovery time. And there's a lot of risks.

A couple months ago, we heard of the author who went for a facelift and she died during surgery. It's a big risk. And it brings up the question, What are people willing to do to have that perfect nose, or the perfect teeth or the perfect smile? And you see, they put their life at risk.

WALLACE: Holly, what about men? We're talk about women, want their high heels, Botox, yadda yadda yadda. But men -- I mean, it sounds like you're watching these shows, men are getting into the act as well.

FIRFER: Absolutely. That's a terrific point.

There's one plastic surgery center down in Florida that is open on Sundays just for men, because they realize that maybe they don't want to sit in the waiting room next to somebody and have people know they're getting Botox or a facelift or a tummy tuck, even, and so it's just for them on Sunday.

And a lot of it is the baby boomers. We talked to doctors who say these -- we're living longer. We're living more vital, healthy lives. And we don't feel old, so you don't -- we don't want to look old. So I'm -- you know, we're willing to do what it takes to still look like you feel.

MALVEAUX: Well, Holly, obviously, there must be some dangers to this as well, some health risk?

FIRFER: Absolutely. Anytime you go under general anesthesia, you have risks.

And an interesting issue was brought up by all the cosmetic surgery being done, is the psychological aspect. Many people believe, When I get a new nose, when I get my tummy tuck, when I look like the perfect person, I'm going to be fabulous, and all of a sudden, I'm going to walk out of the doctor's office and I'm going to have 10 people, 10 movie producers in line with scripts to tell me, you know, I'm going to be the next big thing next to Julia Roberts.

And that's not going to happen, because just because you change who you are on the outside, doesn't necessarily change who you are on the inside. And a good doctor will sit down with the patient and get to the root of this. Why do you want to do this? What is the cause? If somebody says, I want to do it to save my marriage, then they'll say -- a good doctor will say, You need to go fix your marriage first and then come back and tell me if you want me to remake you. On the other hand, some other doctors will argue and say, You know what, though? If you feel better on the outside, you're going to feel better on the inside, you're going to have that self confidence, that self esteem, that self image that you might lack.

But it's just about using -- choosing the right doctor and doing something that you know all the risks about.

CANDIOTTI: Holly, thank you so very much for that discussion.

Now, from talk of pretty feet and bunionectomies, to an ugly situation facing Rush Limbaugh in a Palm Beach courtroom, the legal tug-of-war over his medical records.

I'm ON THE STORY when we come back..

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ROY BLACK, RUSH LIMBAUGH'S ATTORNEY: Why is it that Rush Limbaugh they demand to plead guilty to a crime? That's because they want to embarrass him and disgrace him and discredit him. That's the only reason why.

(END VIDEO CLIP)

CANDIOTTI: That's Rush Limbaugh's attorney, Roy Black, suggesting that the state's investigation into whether Limbaugh illegally bought prescription painkillers, doctor shopping, might be politically motivated.

Welcome back. I'm ON THE STORY.

WALLACE: Susan, where -- what's the evidence there? What are they backing it up with, the accusation that they believe this whole investigation into Rush Limbaugh is politically motivated?

CANDIOTTI: Well, they're suggesting for one thing that the prosecutor who's heading the Palm Beach County State Attorney's Office is a Democrat and they're saying that -- implying that that's why they're going after him. Of course, that office denies it.

And other observers suggest that after all, that prosecutor, while he may be a Democrat, enjoys support on both sides of the political fence, and also point out he's running unopposed this year.

MALVEAUX: Tell us, what specifically is the case that the prosecutors are laying out here? What are the charges?

CANDIOTTI: Well, we have to remember that Rush Limbaugh hasn't been charged with anything. And that's what makes all this fuss and bother so unusual. This is just at an investigative stage.

Remember, that all this started a few months ago -- last fall, actually -- when Rush Limbaugh's former housekeeper, who had already nine months before that gone to investigators, revealed to The National Enquirer, claimed that Rush Limbaugh had illegally purchased prescription drugs from him, thousands and thousands of them, she charged.

So investigators say they took that information and began to look further into it. And they say that they have -- for one thing, they went to pharmacies and seized some of his drug records, saw that he had a number of pills over the last six months. That, in turn, led them to get a search warrant to seize Rush Limbaugh's medical record. Then they immediately sealed them until there was a hearing to get permission to look at them.

So they really only have seen them for about a day before this appeal was filed. And now, the question is over how they went about getting these medical records. Should they have used a search warrant, or, as the defense says according to the state legislature and state law here in Florida -- they maintain the problem here is you can't seize records and then have a hearing about it later. That you should have used -- authorities should have used a subpoena, which would have given Rush Limbaugh the right to challenge that subpoena. So -- to try to prevent them from getting those medical records.

FIRFER: Susan, has Rush been using his radio show to defend himself and get to his audience and defend what he says probably shouldn't happened?

CANDIOTTI: He certainly has. Certainly not every day, but from time to time, when there is a development in his case, he has taken to the airwaves and repeated his claim that, Look, I never did anything illegal. I admit I am an addict. But I did not go about doctor shopping and illegally try to get prescription painkillers.

And so he's been trying to enlist support from his radio listeners, who really believe in him and back him and support him, and try to say that this is politically motivated and they went about doing this the wrong way.

WALLACE: Susan, what's the next step? You know, when do we expect a decision regarding, you know, the access to these records? And how soon could it be before actual charges are filed against Rush Limbaugh?

CANDIOTTI: Well, right now, we're in a bit of a state of limbo here because we're waiting for the appeals court that just met this week and heard the latest argument, to make its decision about whether the state correctly seized those records or whether they should have used a subpoena. So it's possible, if this decision rules that they shouldn't have gotten these medical records the way, they did they might throw the case out altogether. There might never be a case against Rush Limbaugh.

On the other hand, they might throw it back to a lower court and make state prosecutors try to work for the right to look at those medical records, but just specific ones.

WALLACE: Thanks, Susan. We'll certainly be watching that. We want to let our viewers know that CNN will have live coverage of a news conference with the coalition provisional authority in Baghdad. That is at the top of the hour.

We are back ON THE STORY after this. Stay with us.

(BEGIN VIDEOTAPE)

ANNOUNCER: A juror in the Tyco mistrial has been making headlines: Ruth Jordan. What's her story? More when we come back.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

ANNOUNCER: Ruth Jordan -- what's her story? As juror No. 4 in the Tyco corporate corruption trial, Jordan made headlines when the case ended in a mistrial last week, after she received a coercive letter. Her name was printed in at least two newspapers after she allegedly flashed an "OK" sign to the defense table. The Manhattan District Attorney's Office is seeking to re-try the case, and a grand jury is investigating allegations of jury tampering.

(END VIDEOTAPE)

WALLACE: And thanks to my fabulous colleagues.

We also want to thank you for watching ON THE STORY. We will be back next week.

Stay tuned for CNN's live coverage of the coalition provisional authorities in Baghdad. A news conference coming up at the top of the hour. A check of the headlines is next.

Have a great Saturday. Thanks again for joining us.

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


Aired April 10, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Hello, I'm Fredricka Whitfield at the CNN Center in Atlanta. ON THE STORY coming up next. But first, here's what's making news at this hour.
Australian TV is showing this footage of a man, apparently an American, being held hostage by masked, armed men in Iraq, in the backseat of a car. The man says -- quote -- "They attacked our convoy. That's all I'm going to say." He's believed to be one of those who has been missing since a fuel convoy was attacked yesterday near the Baghdad Airport. Others are also missing.

Germany's foreign ministry confirms that two security people assigned to its embassy in Baghdad are missing. The men were part of a convoy that was attacked while traveling from Amman, Jordan to Baghdad. A government spokesman says he can't rule out the possibility that the men are dead. A coalition news briefing is planned at 11:00 a.m. and CNN will be bringing that to you live out of Baghdad.

Televised images of three Japanese hostages in Iraq have provoked large anti-war demonstrations in Tokyo. Abductors say the hostages will be killed tomorrow unless Japan withdraws its troops from Iraq, which Japan says it will not do. But the protesters are pressing their demand that the troops be withdrawn to save the hostages' lives.

The protests in Japan coincide with the arrival of Vice President Dick Cheney in that country. He's scheduled to meet with Japanese leaders on Monday.

Those are the stories making news at this hour. I'm Fredricka Whitfield. ON THE STORY 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 we covered this week. I'm Suzanne Malveaux in Crawford, Texas, ON THE STORY of national security adviser Condoleezza Rice testifying before the 9/11 commission. And the fallout.

JOSIE BURKE, CNN SPORTS CORRESPONDENT: I'm Josie Burke in Augusta, Georgia, ON THE STORY of the Masters golf tournament, where Tiger Woods is lurking and Martha Burke isn't.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: And I'm Susan Candiotti in Miami ON THE STORY of the legal tug-of-war going on between state prosecutors and radio talk show host Rush Limbaugh over the right to look at his medical records. KELLY WALLACE, CNN NATIONAL CORRESPONDENT: And I'm Kelly Wallace, ON THE STORY of Democratic presidential candidate John Kerry back on the campaign stump after a brief medical detour and now blasting President Bush on job, taxes and Iraq.

Also coming up, we'll go to Jane Arraf in Iraq to talk about the Sunni and Shiite insurgencies and Iraq one year after the fall of Saddam Hussein's government.

We'll also talk about reaction from some of the September 11 families to Condoleezza Rice's testimony.

And CNN medical correspondent Holly Firfer will talk about the boom in cosmetic foot surgery for women, all to accommodate those very high-heeled shoes.

We'd also like to hear from you. E-mail us at onthestory@cnn.com.

Now straight to Suzanne Malveaux in Crawford, Texas, and Condoleezza Rice and the September 11 Commission.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: There was no silver bullet that could have prevented the 9/11 attacks. In hindsight, if anything might have helped stop 9/11, it would have been better information about threats inside the United States.

(END VIDEO CLIP)

MLAVEAUX: National Security Adviser Condoleezza Rice before the 9/11 Commission, making the administration's case that there was nothing that they could have done to prevent the September 11 attack.

I'm on that story -- quite a controversial one on Thursday. All eyes on Condoleezza Rice. A lot of questions coming out of it. Some Democrats and critics say perhaps more questions than answers.

BURKE: And Suzanne, a lot of questions about that PDB, that presidential daily briefing from August 6, 2001. You've got some new details about what was contained in that.

What can you tell us?

MALVEAUX: Well, sources who I've spoken to have given us some of the highlights of that top-secret, presidential daily brief. And one of them that stands out is in May of 2001 -- as you'll recall, this was a brief that was given to the president a month before the September 11 attack. But it was in May in 2000 of 1 that they had word al-Qaeda operatives were trying to get into the United States to carry out some sort of attack using explosives.

This was something that was alerted to an intelligence, as well as law enforcement officials. But it really goes to the heart of what Democrats and even some of the commissioners asked Rice over the week. And that is, she made the case that this is a historical document, that there were not the kind of details provided that would allow them to foresee September 11. You look at May 2001. Some say, Well, that's a different definition of historical; that perhaps that recent information -- they could have used and, in combination, have done more.

CANDIOTTI: Suzanne, I think there are a lot of people who are wondering, is there any danger in releasing some of this information contained in these previously classified briefings? They could be giving away state secrets, in effect.

MALVEAUX: Well, certainly, it's a long and involved process, and there are a lot of -- I've spoken with a lot of commissioners, a lot of sources, who say they are trying to work this out. They need to protect what's called sources and methods of intelligence, essentially make a whole bunch of phone calls, check some facts, perhaps even redact some of the documents to make sure that they are protecting people.

My sources saying, Look, the highlights we're giving you are not going to burn any sources. You're OK on this. This is something we expect is going to become public, perhaps in the next couple of days. It is something that the White House and commissioners are vigorously working on because both sides want to get their story out to the public as quickly as possible.

WALLACE: Suzanne, take us behind the scenes a little bit before Condoleezza Rice's testimony, because a number of the families who lost loved ones in September 11 were a little disappointed that they didn't get an apology from Condoleezza Rice and that they feel like they didn't even get some claim of responsibility, some sense that, My goodness, we could have done better. What was the thinking behind the scenes about her approach in that regard?

MALVEAUX: Well, Kelly there really was a lot of thinking behind that, because, as you know, Richard Clarke made that dramatic apology. And a lot of people sat up and took notice with that. As you know, the families as well.

The thinking and the debate within the administration was that if Condoleezza Rice was to go forward and do that, that it really would be an admission here that the administration was at fault for the September 11 attacks, that rice needed to say something, that she acknowledged the pain of the families and of the country. But what they're trying to emphasize is they say, Look, we're in this war on terror. We think that the best way to acknowledge and honor those families is to move forward.

One thing I should also let you know as well is that the Bush campaign, really, they say, Hey, we think that Rice did a good job. But they want the American voters, the people, to focus on what the president has done the last three years, after the September 11 attacks, as opposed to the eight months prior. They think that that record is very strong.

BURKE: Suzanne, can you tell us how closely the president watched while it was going on, live -- Condoleezza Rice's testimony -- and what his reaction was when it was all over? How'd she do, in his eyes?

MALVEAUX: Well, as you know, the president is at his Crawford ranch for the Easter holiday. And we are told that he and the first lady were at home at their Crawford ranch. They watched all three hours of the testimony. He giving a tour to some environmentalists. He was in his pick-up truck, and he called Condi on the phone to congratulate her. He couldn't get through the first time. We are told that the line was busy. So she called back, and he congratulated her, said, You did a great job. We're -- you know, we're all very proud of you. You articulated our message well.

Of course, there are others who say, Look, you know, this is far from over, because next week, what you're looking at is the intelligence officials, Justice Department officials -- they're all going to be in the hot seat and these questions are going to come fast and furious, as we've seen Thursday with Dr. Rice.

CANDIOTTI: And, of course, Suzanne, coming up next week, you have important testimony coming up from the attorney general, right?

MALVEAUX: Absolutely. You're looking at John Ashcroft, who is going to go first, and then Janet Reno, then George Tenet of the CIA, and Louis Freeh, his predecessor (sic).

And the big question here that came out of the testimony, one thing that Rice talked about time and time again, is that she did admit that this administration and previous administrations had a problem, a structural problem, she says, with the FBI and the CIA communicating with one another, that because of legal barriers and just a culture, that they weren't really sharing information. And that was one of the main problems to not seeing the September 11 attacks. So there's going to be a lot of hard questions, especially to those intelligence officials.

WALLACE: And Suzanne, of course, we are in a presidential election year. What's the sense from your sources about how the White House is feeling about President Bush, his handling of the war on terror, after Condoleezza Rice's testimony? I mean, how worried are they about this issue impacting the president in the months ahead?

MALVEAUX: You know, Kelly, there are two things that they're worried about.

First and foremost, if you look at the situation on the ground in Iraq, the way things have deteriorated. This is a president running on his wartime record, and they really want people to believe -- the allies, American people, the Iraqis, that this is going to work in transferring power. And they've been trying to shore up that support. That is the first thing.

The other thing with Dr. Rice's testimony here is they believe she did a good job, but they have to make the case. We've seen polls that have mixed result it is here about whether or not President Bush or Rice is more trustworthy, or whether or not they believe the White House really has a strategy to deal with Iraq.

That is something they know they have to work on. It's going to be very interesting to see in the months to come, especially when you have that turnover in Iraq, just how the administration is going to portray its message.

CANDIOTTI: Suzanne, you know, aside from the politics of all of this, the commission -- why do its members and others think that it is important to go over what happened on September 11 to the degree and to the detail we are? What is the end result?

MALVEAUX: Well, what's interesting is that they -- of course, they want to prevent another a tack like this from happening. The reason why you're going over the kind of detail here is because essentially what they're saying, is there was a lot of information out there -- a heck of a lot of information. And there was a failure in connecting the dots here.

I don't think that what they're seeing is that this individual or that individual was responsible, but that really it was systemic, and that it crosses both administrations. That is what they're trying to get at here.

As you know, too, they want to also present as best a public record as possible, and that is why you have that big, big fight over getting Dr. Rice in front of those cameras to make the case. They had already heard many of these argument, but, as you know, there were some contradictions between Rice and her deputy, Richard Clarke. But more so, they really want the American people to know that they are using as much information they can to come up with some sort of recommendation so this doesn't happen again.

WALLACE: Suzanne, moving from the September 11 investigation to another issue -- the administration's certainly watching very closely the fight for Iraq. Coalition forces now facing both Sunni and Shiite unrest.

Jane Arraf is on that story when we come back. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DAN SENOR, COALITION AUTHORITY SPOKESMAN: As we get closer and closer to June 30, as we hand over sovereignty here, there are going to be these bump notice road, where mobs of -- violent mobs and two- bit thugs are going to try to throw this process off course.

(END VIDEO CLIP)

WALLACE: And that was coalition authority spokesman Dan Senor, commenting on what's been a very bloody week for both coalition troops and Iraqi civilians.

Welcome back. We are ON THE STORY.

This week, coalition forces were facing attacks from both Shiite and Sunni fighter.

Joining us now by videophone from Kut, Iraq, with the U.S. Army's 1st Armored Division is our Baghdad bureau chief, Jane Arraf.

Jane, thanks for joining us.

First question -- what is the status right now of the U.S. Army trying to take control of Kut?

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Well, they say, Kelly, that they have control of 60 to 70 percent of the city. Now this is after two nights of fierce fighting in some places.

Early this morning, before dawn, they took control of the radio and TV station and a key bridge. They say they now control access to the entire city, and they are gearing up for another night of fighting tonight.

We were out in the streets of Kut, where it's relatively calm. People are just starting to come out. And many of them said that they have been intimidated by Muqtada al-Sadr and his militia. But others said that there were reasons that he has some support. It's a very poor area and there's quite a lot of discontent here -- Kelly.

MALVEAUX: Jane, the Bush administration has really marginalized these groups. We know that Shia and Sunni are both fighting right now. But they say that this is a bunch of thugs and terrorists. Can you give us a sense of how big this group is, or how significant, when you look at the larger Iraqi population?

ARRAF: You know, it's really interesting, because when you look at the numbers, they're not huge numbers.

Here in Kut, which is a city of 300,000 people, we're talking about 500 fighters at the most. And when the initial battle started, there were perhaps just a few dozen who were actually fighting against the U.S. troops.

And we have to remember, there's a phenomenal story as well involving the 1st Armored Division. They were due to go home. Some of them were on their way home. And instead of going home, they were re- deployed, sent out to fight these battles.

So the numbers that they're fighting against aren't huge, but one of the things that has helped make a big impact is that the Muqtada (ph) army took control, police stations, and in some cases the police just melted away. It's been a big problem, the lack of Iraqi police, the lack of Iraqi civil defense forces. The army has not had a lot of help in combating the Muqtada (ph) army.

So even though the numbers aren't very big, they've had a big impact in many places.

CANDIOTTI: Jane, this is Susan Candiotti talking.

I'm wondering about this new, very frightening aspect of the war, and that is the aspect of hostage-taking, that we heard about this week with the Japanese. And now we have this missing American, for example.

How much more dangerous of an indication is this, in what's happening over there?

ARRAF: You know, that's a great question, and it's really hard to tell.

I guess from the vantage point of discouraging people -- companies, particularly, foreign investments, from coming here -- it is a brilliant tactic if you're going to use that. Because there's almost nothing that scares people more -- not suicide bombs, not rocket attacks, that fear of being held hostage, I think. Among a wide variety of groups -- they have taken Arabs hostage, is really very chilling.

Does it make things more dangerous? Perhaps it makes one more cautious. But I'm really curious about the impact of this. It seems that it is having an extraordinary impact on the United States. Do you think this could be a turning point in the way people feel about how dangerous it is here?

BURKE: Jane, are there indications that the Sunni militia and the Shiite militia are actually, in some places, joining together?

ARRAF: Again, that's something that everyone has feared. But we haven't really seen evidence of it, nor have we heard of evidence of it.

What we've heard of is some anecdotal evidence, that in some cases there is sympathy on that basic level, where people are enraged enough at the United States and at the military that they are supporting whoever is fighting on their territory.

But the thing that many have feared, that broad-brushed cooperation from the highest levels that would unite the Shias and the Sunnis so far doesn't seem to be happening. I mean, again, this has been, as you've all mentioned, an extraordinary week, with the United States fighting these battles, political, and military, on so many fronts. And one of the things it fears is that it could spread if there is a lot of widespread support.

But what it continues to say is, now, a pretty localized problem in some places.

WALLACE: Jane, you're there, of course, with the U.S. Army's 1st Armored Division. You're talk to the men and women.

What's their sense of the situation? Are they surprised by the resistance? And what's their morale like now?

ARRAF: Well, I think when we're talking about morale, we have to understand that each and every one of these people had been expecting to go home. They have packed up their stuff, they've packed up their photos, they've packed up their television sets, they've sent them home. They have told their wives and husbands and children they are going to be home. Now they have to make that phone call saying, Guess what? I'm not going to be home for a while.

We're talking about three months from now, another deployment of three to four months for these people. So morale in that sense is not the greatest. But at the same time, you do hear from a lot of them that this is the reason that they're here, and if they didn't finish this, if they didn't fight these people, then that would simply leave it for the next people coming in. So it's an interesting combination.

As for the insurgents, they are relatively small numbers, but, really it has been driven home to them that they have to stay until this is finished. And that means several months. And we are getting into summer, so that's another reason that morale could suffer a little bit more.

But, again, extremely motivated, just very sad they're not going home right now.

BURKE: Jane, thanks so much for taking time out to talk to us this morning. We want to urge you to, number one, stay safe, and, number two, can you tell us where you'll be and what stories you'll be covering in the days ahead?

ARRAF: You bet.

We are going to be following what's going on in Kut. They're expecting to continue their operation this evening. And we'll be going out on that to see what happens. They're going to try to retake the rest of the city.

Back in Baghdad, of course, there's an awful lot happening. And we will be back there, following up those political developments. We're heading -- we are racing towards that deadline for the U.S. to hand power back, as well as Fallujah, all sorts of things going on, as you know, hard to keep up. But we're going to be covering military, political developments, basically, wondering if this is really going to work, before that deadline, June 30.

BURKE: Thanks again, Jane. And do stay safe.

From the grim reality of Iraq, we're going to now turn our attention to a much more pleasant rite of spring here in this country, and that's the Masters. I'm back on that story in just a moment.

(BEGIN VIDEOTAPE)

ANNOUNCER: Josie Burke is a correspondent for CNN Sports. She joined CNN in 1998. Earlier, she covered the Dallas Cowboys for the Fort Worth Star-Telegram. She graduated from Harvard.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP) ARNOLD PALMER, GOLFER: It's time. I won't say I'm happy it's done -- it's time for it to be done, for me.

(END VIDEO CLIP)

BURKE: Golf's first major, the Masters, got off to a bittersweet start, with 74-year-old Arnold Palmer, who is playing in his 50th consecutive Masters, calling it quits, saying that it was his last Masters.

Today, the rest of the golf professional world gets down to business, trying to win the most coveted prize in all of golf, an ugly green jacket. I'm back on that story.

CANDIOTTI: Well, Josie, so much for the ugly green jacket. I've got a green shirt on, anyway.

But it will be -- it will be strange not seeing Arnie, Arnold Palmer, out on the golf course any more, after having grown up watching him over the years. It will be sad seeing him hang up his cleats.

But I guess he'll stay play some kind of a role, possibly at the Masters, right?

BURKE: Yes, they have position of honorary starter. He's considering coming back to do that. He said he'll come back, even if it's just to sit on the verandah up here by the first tee, have lunch and watch everyone else struggle to conquer this course.

And what's interesting about Palmer is that he was so connected with this tournament. Other guys won it more -- he did win it four times, but a big part of his connection was the rapport that he had with the fans and the fact that he started winning when television got big and he was such a captivating television presence that he blew up with television. And when I say blew up, I mean in a great way -- really became a celebrity because of it.

MALVEAUX: And Josie, I know there are a lot of fans, but last time around there were some big protests as well because it's all male.

What are we seeing this year? Do you see that kind of protest this time around?

BURKE: Well, last year there was a very visible protest. It was held on Saturday, when they played the third round here. It did not go over well. It was very underattended and it was almost -- almost became a joke a little bit.

Totally different tactic year. The organizer of that protest, Martha Burke, announced this week that she's hired a lawyer, a very famous civil rights lawyer, to look into gender practices of eight big companies on Wall Street. And those eight big companies just happen to have top executives who are members here at Augusta National. So we're not hearing too much about the story this week, but it's certainly not something that's going to go away, because she's starting a different version of this battle.

WALLACE: Josie, of course, we can't talk about golf without talking about Tiger, Tiger, Tiger. He's been in a slump. What are they saying, experts, about why he's been having some many problems lately?

BURKE: This was so interesting, Kelly, because there were a couple of different theories that were being floated.

Number one, was the sort of grounded -- in what you saw on the golf course, that Tiger Woods' swing didn't look all that great and maybe it had something to do with the fact that a couple years....

WALLACE: Hmm. I think we have lost Josie Burke there, who is now with us -- she was telling us a little bit about some problems with Tiger Woods' golf swing. But she also had another theory she had been hearing from some people that some people are speculating that he's now engaged and that perhaps he might be a little distracted.

Josie, are you there back with us?

BURKE: I'm back with you. Do you have me, Kelly?

WALLACE: I do. I was trying to paraphrase your great reporting, which is terrible for me to do.

Pick up on why...

BURKE: I heard you. You did a good job.

WALLACE: All right, you're so very kind.

What's this about...

(CROSSTALK)

WALLACE: Could he be distracted by being engaged?

BURKE: Yes, this is something that he has had to answer a question about.

Last November, he got engaged to his sweetheart, Elin, and his game, since then, some people have correlated poor play with the engagement, making this commitment. Maybe he's distracted, maybe he doesn't care as much.

He disputes that wholeheartedly. He says, look at Jack Nicklaus, happily married, won all these majors because he had balance. I think being happy in my personal life and being fulfilled is actually going to help me on golf course.

So he definitely says that's not the case. But I think it's interesting because it's sort of like equal opportunity sexism. You always hear about women being criticized after they have a baby or after they get married, maybe losing their edge in the golf course. And here it's happening to a big guy out on the professional golf tour. WALLACE: We love that, equal opportunity criticism.

Josie, sorry we had some technical problems. Thanks so much for joining us. Tell us what's ON THE STORY for you, of course, in the day and days ahead.

BURKE: Well, everyone's going to be watching this tournament very closely.

And one interesting story we didn't talk about, the sentimental favorite here is a guy who is one of the best golfers on tour, Phil Mickelson, has never won a major. He is in contention. I think there are going to be a lot of people out here lining the fairways, pulling for the lefty, Phil Mickelson. And that's a story that I'm going to be following.

WALLACE: Well, Josie, we'll be watching all your fabulous reporting. Enjoy the weather there. Thanks again.

And we are moving from the links to the campaign trail and the buzz when it comes to Democratic presidential candidate John Kerry's search for a vice president.

I'm on that story when we return, but first being a check of what's making headlines at this hour.

WHITFIELD: Hello, I'm Fredricka Whitfield. Here's a look at the top stories at this hour.

A search is under way in Baghdad for two members of an elite German security team assigned to the embassy. Officials say they were part of a convoy driving from Amman, Jordan, to Baghdad. Other members of that convoy made it safely to the German embassy. A coalition news briefing is planned at 11:00 a.m., and CNN will bring that to you live, as it happens.

Australian TV is showing footage of a man who says he is an American taken hostage when his convoy was attacked. He's believed to be one of those missing after a fuel convoy was attacked yesterday near the Baghdad airport. Other soldiers and contractors are also considered unaccounted for.

Military officials are offering a cease-fire after a week of fierce fighting in Fallujah. The U.S.-led coalition is hoping militants will stop their attacks and allow for a transition to Iraqi control of the city. The offer comes one day after U.S. marines stopped firing to allow Iraqis to bring in supplies and bury their dead. The cease-fire offer comes a day before a Muslim holiday.

Those are the top stories at this hour. I'm Fredricka Whitfield. ON THE STORY is back in a moment.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP) SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We've made it through the spring training. We've made it through the regular season. We're in the playoffs. And I intend to win the World Series in this effort this year.

(END VIDEO CLIP)

WALLACE: And that is the presumptive Democratic nominee, John Kerry, signaling that he's ready to wrap up his challenge to President Bush after taking a brief hiatus from the campaign trail for shoulder surgery.

Welcome back. I am ON THE STORY.

And joining us all now is CNN medical correspondent Holly Firfer in Atlanta.

Holly, nice to see you.

HOLLY FIRFER, CNN MEDICAL CORRESPONDENT: Good morning, Kelly.

Question for you. You know, it's been a busy week, from Iraq to the 9/11 hearings, and Kerry had a major economic speech, a major economic message that sort of got lost.

What does he need to do to bring himself back into the forefront in this political election year?

WALLACE: He definitely wanted, Holly, to try and come back aggressively, criticizing the president when it comes to the budget deficit and tout his own economic plan, how he says he will cut the deficit in four years.

It definitely did get lost because of events in Iraq and because of the investigation into the September 11 attack. His aides say he will keep talking about the economy, and that when he travels around the country, to places like Illinois and Wisconsin, you'll have a lot of local reporters who were there, and they are reporting the story on their local stations, in their local papers. So it is getting out, and that message is getting to voters.

But you are seeing the senator talking more and more, even, about Iraq, and I am, you know, hearing from some sources that there's some discussion about whether the senator might, in the days ahead, want to do another Iraq speech to reiterate his own policy when it comes to the situation there.

MALVEAUX: And Kelly, tell us why he hasn't really talked that much about the 9/11 commission, the testimony of Dr. Rice and Richard Clarke. It seems as if he's kind of shied away from that a little bit. He wasn't as forthcoming. A lot of questions kept coming at him, and he really kind of stepped back a little.

Why do you suppose that's the case?

WALLACE: Politically, Suzanne, his advisers say they don't really need him or want him to step into this.

This is a controversial issue, as you know, from your vantage point. The White House is taking a lot of heat about this; President Bush is on the hot seat about it. And so they feel they don't need John Kerry to step into this and being accused of politicizing what is, obviously, a very important investigation.

So you did have him talk a little bit about the drum beat to call Dr. Rice to testify. He did sort of say she should come forward. But since then, he's saying, Look, it's a process. I'll wait for the report. I'm not going to comment. Really, mainly, a political reason there.

CANDIOTTI: Kelly, this week, we've been starting to hear more and more about choosing his vice presidential running mate this early, which of course is unusual. Can you talk a lot about that and who are some of the names you're hearing?

WALLACE: It is unusual, Susan, because one thing we are hearing, that people will sort of confirm, is that there is a sense of trying to announce this earlier than ever before, maybe as early as May. Part of that reason is to get extra help on the campaign trail to raise money. But also, you have President Bush and Vice President Cheney out there, criticizing John Kerry. So his advisers would like to get some help from the vice presidential candidate to criticize President Bush and Dick Cheney.

Of course, the Kerry campaign, the senator himself, saying, We are not talking about this. We are keeping this secret.

But some names out there that appear to be some of the top contenders, some former presidential candidates. We have John Edwards, who has been out there talking quite a bit on John Kerry's behalf. Dick Gephardt, the former Missouri congressman. You also have governors, like Bill Richardson and Tom Vilsack of Iowa.

And then a name that just gets so much buzz is John McCain, the Republican senator of Arizona. Some campaign advisers talk about this in some way, like, Wouldn't it be so amazing if you had that on the ticket? But John McCain keeps saying No way, no way, I'm not interested. That hasn't stopped reporters like ourselves from continuing to talk about it.

FIRFER: Kelly, I have a question for you. What about -- what does John Kerry need to do to sort redefine himself? He was gone for a while with shoulder surgery. Does he need to get a little more aggressive and make himself stand out?

WALLACE: One thing, Holly -- it's a great question, because one thing you're hearing, even from Democrats, some concern that you look at some polls and Americans say they just don't know much about John Kerry, and there is concern that John Kerry is letting Republicans define him, and he needs to define himself.

What many people believe he needs to do is sort of what he's trying to do now, is get out there, tell the American people, not just what President Bush is doing wrong, and what -- the problems with the Bush administration, but his plan, what he would do, as president. He did that in a big speech on the economy this week. He did it -- another economy speech not too long ago. Aides say he's going to continue to do that as he travels around the country with his plan, both on the domestic and international policies. And Democrats say the time is now, he needs to do it now, over these next few weeks, as more and more Americans are paying attention.

MALVEAUX: Kelly, you look at him now, and you wonder, How is he going to hold up for any of the months to come? I mean, take -- I look at pictures of him, and sometimes he looks great and other times it looks like -- you know? It's -- he's getting tired here (ph). And he's got a long way to go.

Do they have a strategy? I mean, this is a long-term project here.

WALLACE: It is. It is.

And that is why they say even though he was criticized for taking some downtime -- he was skiing and snowboarding in Idaho -- just as you know, President Bush was out there ramping up his general election campaign. They say that he needed some rest. And I know, I covered him for quite a long time. When you get tired, you know, you're run down, you might not be as sharp on the campaign trail. So he needed some rest.

They say they're going to try to and get him out there as much as possible, Suzanne, and then take, you know, periodic breaks. Like this weekend, it's the holiday Easter weekend. He's up in Boston, try to recharge his batteries.

But they're prepared, Suzanne. They know that this is a general election season like no other, that we haven't seen in a long time. So they're keeping their bags packed and they expect him to be on the road.

And you heard him in that opening. He says he's ready and we'll see in the months ahead.

(CROSSTALK)

MALVEAUX: And I'm sure your bags are packed, too, huh, Kelly?

WALLACE: Yes, so are yours, right?

MALVEAUX: Always. Always.

FIRFER: That will keep both of you busy, I'm sure.

WALLACE: Yes, it will.

FIRFER: Well, from the rough-and-tumble world of politics to new frontiers in cosmetic surgery, and the growing number of women willing to go under the knife for a pretty pair of shoes.

I'm ON THE STORY when we come back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I built my practice on being -- on patients being able to wear any shoes. And I think women -- it's like saying to someone "don't have chocolate." You know, women certainly consider shoes an important part of their wardrobe.

(END VIDEO CLIP)

FIRFER: The Institute Beaut's (ph) Dr. Suzanne Levine (ph) talks about the booming business of cosmetic foot surgery. More women are turning to the procedure because they're just not willing to part with a good-looking pair of high-heel shoes.

Welcome back. I am ON THE STORY.

MALVEAUX: Holly, I know a lot of people. They've gotten their noses done, their eyes done, a little nip, tuck here and there. I don't know anybody's who's gotten their foot done. How prevalent is this?

FIRFER: You would be surprised. A lot of women are doing this. It's becoming more popular.

You know, "Sex and the City," the HBO show that made Manilla Blanick (ph) and Jimmy Choo a household name. Women want to wear these shoes, high heels, pointy toes, and your feet are not meant to go that way.

We've heard such crazy things as women cutting down toes to fit in shoes, but more likely to have a bunionectomy, bunion surgery, which shaves part of the bone by the big toe to fit into the shoes. Women are getting Restalin (ph) or Botox injections. Restalin will boost up collagen into the heel to make it more comfortable, Botox to stop the sweating.

There's such a thing as toe cleavage even -- who knew? But women are doing it? Why?

CANDIOTTI: Holly, you've given me an idea. I'm going to try to work -- I'm going to try to work the word bunionectomy into a sentence sometime today. Thank you. OK.

I wanted to ask you about all these extreme makeover shows that are so popular these days. I mean, they certainly look inspiring and inviting for a lot of people. Hey, I'd like to get something like that done.

But what's the possible downside to it?

FIRFER: You bring up a great point.

We see these shows, like "Extreme Makeover," the one the other night, "The Swan," where they turn these women into so-called beauties, and they compete in beauty competitions. But what you're see is three to six months of major surgery, and recovery, condensed into one hour. So it makes it look like, Hey, I could do this. I could go under the knife and come out looking like Suzanne Sommers or Christie Brinkley.

But the problem, this is major surgery. There's major recovery time. And there's a lot of risks.

A couple months ago, we heard of the author who went for a facelift and she died during surgery. It's a big risk. And it brings up the question, What are people willing to do to have that perfect nose, or the perfect teeth or the perfect smile? And you see, they put their life at risk.

WALLACE: Holly, what about men? We're talk about women, want their high heels, Botox, yadda yadda yadda. But men -- I mean, it sounds like you're watching these shows, men are getting into the act as well.

FIRFER: Absolutely. That's a terrific point.

There's one plastic surgery center down in Florida that is open on Sundays just for men, because they realize that maybe they don't want to sit in the waiting room next to somebody and have people know they're getting Botox or a facelift or a tummy tuck, even, and so it's just for them on Sunday.

And a lot of it is the baby boomers. We talked to doctors who say these -- we're living longer. We're living more vital, healthy lives. And we don't feel old, so you don't -- we don't want to look old. So I'm -- you know, we're willing to do what it takes to still look like you feel.

MALVEAUX: Well, Holly, obviously, there must be some dangers to this as well, some health risk?

FIRFER: Absolutely. Anytime you go under general anesthesia, you have risks.

And an interesting issue was brought up by all the cosmetic surgery being done, is the psychological aspect. Many people believe, When I get a new nose, when I get my tummy tuck, when I look like the perfect person, I'm going to be fabulous, and all of a sudden, I'm going to walk out of the doctor's office and I'm going to have 10 people, 10 movie producers in line with scripts to tell me, you know, I'm going to be the next big thing next to Julia Roberts.

And that's not going to happen, because just because you change who you are on the outside, doesn't necessarily change who you are on the inside. And a good doctor will sit down with the patient and get to the root of this. Why do you want to do this? What is the cause? If somebody says, I want to do it to save my marriage, then they'll say -- a good doctor will say, You need to go fix your marriage first and then come back and tell me if you want me to remake you. On the other hand, some other doctors will argue and say, You know what, though? If you feel better on the outside, you're going to feel better on the inside, you're going to have that self confidence, that self esteem, that self image that you might lack.

But it's just about using -- choosing the right doctor and doing something that you know all the risks about.

CANDIOTTI: Holly, thank you so very much for that discussion.

Now, from talk of pretty feet and bunionectomies, to an ugly situation facing Rush Limbaugh in a Palm Beach courtroom, the legal tug-of-war over his medical records.

I'm ON THE STORY when we come back..

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ROY BLACK, RUSH LIMBAUGH'S ATTORNEY: Why is it that Rush Limbaugh they demand to plead guilty to a crime? That's because they want to embarrass him and disgrace him and discredit him. That's the only reason why.

(END VIDEO CLIP)

CANDIOTTI: That's Rush Limbaugh's attorney, Roy Black, suggesting that the state's investigation into whether Limbaugh illegally bought prescription painkillers, doctor shopping, might be politically motivated.

Welcome back. I'm ON THE STORY.

WALLACE: Susan, where -- what's the evidence there? What are they backing it up with, the accusation that they believe this whole investigation into Rush Limbaugh is politically motivated?

CANDIOTTI: Well, they're suggesting for one thing that the prosecutor who's heading the Palm Beach County State Attorney's Office is a Democrat and they're saying that -- implying that that's why they're going after him. Of course, that office denies it.

And other observers suggest that after all, that prosecutor, while he may be a Democrat, enjoys support on both sides of the political fence, and also point out he's running unopposed this year.

MALVEAUX: Tell us, what specifically is the case that the prosecutors are laying out here? What are the charges?

CANDIOTTI: Well, we have to remember that Rush Limbaugh hasn't been charged with anything. And that's what makes all this fuss and bother so unusual. This is just at an investigative stage.

Remember, that all this started a few months ago -- last fall, actually -- when Rush Limbaugh's former housekeeper, who had already nine months before that gone to investigators, revealed to The National Enquirer, claimed that Rush Limbaugh had illegally purchased prescription drugs from him, thousands and thousands of them, she charged.

So investigators say they took that information and began to look further into it. And they say that they have -- for one thing, they went to pharmacies and seized some of his drug records, saw that he had a number of pills over the last six months. That, in turn, led them to get a search warrant to seize Rush Limbaugh's medical record. Then they immediately sealed them until there was a hearing to get permission to look at them.

So they really only have seen them for about a day before this appeal was filed. And now, the question is over how they went about getting these medical records. Should they have used a search warrant, or, as the defense says according to the state legislature and state law here in Florida -- they maintain the problem here is you can't seize records and then have a hearing about it later. That you should have used -- authorities should have used a subpoena, which would have given Rush Limbaugh the right to challenge that subpoena. So -- to try to prevent them from getting those medical records.

FIRFER: Susan, has Rush been using his radio show to defend himself and get to his audience and defend what he says probably shouldn't happened?

CANDIOTTI: He certainly has. Certainly not every day, but from time to time, when there is a development in his case, he has taken to the airwaves and repeated his claim that, Look, I never did anything illegal. I admit I am an addict. But I did not go about doctor shopping and illegally try to get prescription painkillers.

And so he's been trying to enlist support from his radio listeners, who really believe in him and back him and support him, and try to say that this is politically motivated and they went about doing this the wrong way.

WALLACE: Susan, what's the next step? You know, when do we expect a decision regarding, you know, the access to these records? And how soon could it be before actual charges are filed against Rush Limbaugh?

CANDIOTTI: Well, right now, we're in a bit of a state of limbo here because we're waiting for the appeals court that just met this week and heard the latest argument, to make its decision about whether the state correctly seized those records or whether they should have used a subpoena. So it's possible, if this decision rules that they shouldn't have gotten these medical records the way, they did they might throw the case out altogether. There might never be a case against Rush Limbaugh.

On the other hand, they might throw it back to a lower court and make state prosecutors try to work for the right to look at those medical records, but just specific ones.

WALLACE: Thanks, Susan. We'll certainly be watching that. We want to let our viewers know that CNN will have live coverage of a news conference with the coalition provisional authority in Baghdad. That is at the top of the hour.

We are back ON THE STORY after this. Stay with us.

(BEGIN VIDEOTAPE)

ANNOUNCER: A juror in the Tyco mistrial has been making headlines: Ruth Jordan. What's her story? More when we come back.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

ANNOUNCER: Ruth Jordan -- what's her story? As juror No. 4 in the Tyco corporate corruption trial, Jordan made headlines when the case ended in a mistrial last week, after she received a coercive letter. Her name was printed in at least two newspapers after she allegedly flashed an "OK" sign to the defense table. The Manhattan District Attorney's Office is seeking to re-try the case, and a grand jury is investigating allegations of jury tampering.

(END VIDEOTAPE)

WALLACE: And thanks to my fabulous colleagues.

We also want to thank you for watching ON THE STORY. We will be back next week.

Stay tuned for CNN's live coverage of the coalition provisional authorities in Baghdad. A news conference coming up at the top of the hour. A check of the headlines is next.

Have a great Saturday. Thanks again for joining us.

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