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CNN Wolf Blitzer Reports

Nation Put on High Alert on Eve of 9/11; Fresh Details of bin Laden's Activities During WTC Attacks Revealed

Aired September 10, 2002 - 17:00   ET

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

WOLF BLITZER, CNN ANCHOR: Now on WOLF BLITZER REPORTS: Code Orange; on the eve of this 9/11 the nation is placed on high alert.
(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We'll do everything we can to protect the American people.

(END VIDEO CLIP)

BLITZER: With terror threats at home and abroad, where's Vice President Cheney?

Tears of joy.

(BEGIN VIDEO CLIP)

MIKE BOETTCHER, CNN NATIONAL CORRESPONDENT (voice-over): Bin Laden begins weeping and praying, then shouts Allah Akbar, "God is great."

(END VIDEO CLIP)

BLITZER: Exclusive details of what Osama bin Laden was doing on September 11. And, fresh al Qaeda videos offer a window into his terror network.

Martha Stewart's in hot water as lawmakers reach the boiling point. And, paralyzed for years, actor Christopher Reeve proves he is a super hero.

It's Tuesday, September 10, 2002. I'm Wolf Blitzer in Washington. Welcome to a special edition. President Bush today raised the nation's terror alert warning to its second-highest level signaling a high risk of attack ahead of tomorrow's one-year anniversary of the September 11 attacks. The Attorney General John Ashcroft announced the increase of the terror alert level from Code Yellow to Code Orange earlier this afternoon.

In this hour, we'll speak live with the Homeland Security Director Tom Ridge and ask him why. We also have reports on this move and its implications around the world on the possible threats here in the United States and what's being done about them. We have reports from Jeanne Meserve, here in Washington; Kelly Wallace over at the White House; Jamie McIntyre at the Pentagon; and Jason Carroll on the streets of New York City. Let's begin with Jeanne Meserve -- Jeanne.

JEANNE MESERVE, CNN CORRESPONDENT: Wolf, it is the first time the threat level has been raised since the alert system went into effect last March. The reasons are compelling. One homeland security official tells me "we had no choice."

(BEGIN VIDEOTAPE)

MESERVE (voice-over): Increased security of government buildings and monuments, every air marshal in the sky, local law enforcement on its toes all across the nation, measures being taken here in the U.S. as the threat level is ratcheted up from yellow to orange, high risk, though the most serious threat is abroad.

JOHN ASHCROFT, ATTORNEY GENERAL: The United States Government has concluded, based on analysis and specific intelligence of possible attacks on U.S. interests overseas to call government, law enforcement, and citizens, both at home and overseas to a heightened state of alert.

MESERVE: Fresh intelligence from a senior al Qaeda operative in the custody of a friendly country indicates American embassies and military facilities in Southeast Asia could be targeted on the anniversary of the September 11 attacks. Intelligence from a separate source suggests the possibility of al Qaeda suicide attacks against American targets in the Middle East.

In response, embassy security is being beefed up. Concern about a possible attack had already shut some embassies, including those in Malaysia, Indonesia, Pakistan, and Bahrain. Americans overseas were warned by the State Department to be vigilant. No specific or credible threat against any domestic targets but the current pattern is so similar to what was seen just prior to last September's attacks, security within the U.S. will be more visible and robust.

TOM RIDGE, HOMELAND SECURITY DIRECTOR: They may engage in increased surveillance or counter surveillance operations. They make adjustments as to the number of entry points into buildings.

(END VIDEOTAPE)

MESERVE: With 90 percent of the nation's critical infrastructure in private hands, Governor Ridge today briefed industry leaders as well as state and local government leaders about security steps they might take. As for the public, they're being told to keep their eyes open and go about their business as usual, even if that includes attending commemorations tomorrow of last year's terrorist events; Wolf, back to you.

BLITZER: Thank you very much Jeanne Meserve. And, with the heightened terror alert, the Vice President Dick Cheney is once again spending his nights at a secure and secret location. Let's go live to the White House. Our correspondent there, Kelly Wallace, is standing by with details -- Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Wolf, senior officials say they are doing this at "an overabundance of caution" and also due to continuity of government concerns, the desires to keep the president and the vice president in separate locations at times when there is an increased threat of terrorist attacks.

And so, we saw the vice president here at the White House earlier this morning. He was meeting with the president and other national security advisers. But then later in the day, he headed to that secure undisclosed location. He was expected to give a big speech, a speech on the war on terror in Washington this evening. Instead, he will be delivering his remarks on videotape. Said one official, "they're really in a minute-by-minute approach now in determining the vice president's schedule."

Now the president for his part gave the go ahead earlier this morning to increase the nation's threat level. At the Embassy of Afghanistan this afternoon, the president explained why he made that decision.

(BEGIN VIDEO CLIP)

BUSH: The threats that we have heard recently remind us of the pattern of threats we heard prior to September the 11th. We have no specific threat to America but we're taking everything seriously, obviously.

(END VIDEO CLIP)

WALLACE: Now the president is keeping his schedule tomorrow, attending events at the Pentagon and then traveling to Pennsylvania and New York to remember the victims of the September 11 attacks. It is not clear though if the vice president will join the president at events in Washington and at the Pentagon as he was scheduled to do. Wolf.

BLITZER: Kelly Wallace at the White House thanks very much. U.S. military leaders are keeping an eye on the threats to U.S. targets around the world.

Our senior Pentagon correspondent Jamie McIntyre is covering that for us -- Jamie.

JAMIE MCINTYRE, CNN PENTAGON CORRESPONDENT: Well, Wolf, the U.S. military has raised its threat level all around the world but, in particular, in the Persian Gulf. In Bahrain, where (UNINTELLIGIBLE) is the headquarters of the U.S. Fifth Fleet, they've gone to the highest level, Delta, but all of the countries in the Persian Gulf region have pretty much gone to the second-highest level alert known in the military as Charlie; forces in the Pacific Command and in the European theater also on higher alert but not quite as high as in the Persian Gulf region.

In addition, the navy has issued an alert to commercial shipping warning that al Qaeda might be prepared to launch an attack against an oil tanker and it's warned commercial shipping about that.

Back in our own backyard, literally, outside the Pentagon, you can see missile systems deployed. Yesterday, the Pentagon said it's an exercise. Today they changed it now to a deployment and stinger missiles will be moved to these Avenger missile launching systems in order to provide an actual air defense capability at key Washington military installations until further notice. Wolf.

BLITZER: Jamie McIntyre thanks for that report. In New York City, meanwhile, emotions and security concerns run deep for some people. For others, the focus this past year has been on returning to normal routines shattered by the September 11 attacks. CNN's Jason Carroll is standing by. He's on the streets of New York. He's getting ready for what could be a very, big day tomorrow.

Tell us a little bit, Jason, about the pulse of the city right now.

JASON CARROLL, CNN CORRESPONDENT: Well, Wolf, I think New Yorkers are basically used to hearing about these terror alerts. You know that New York has been under the orange alert for most of the past year.

The New York City Police Department has been operating under that. They have been dedicating their resources based on that, so they were ready to add security to the United Nations where the General Assembly is being held this week. They were ready to provide added surveillance of the city's bridges and tunnels.

The police will be conducting random security checks at those particular locations. They'll also be paying special attention to the city's landmarks and religious institutions. The New Yorkers we talked to definitely have concerns but most feel comforted by the steps the police department has taken so far.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We need to go about our daily activities, and although I think we need to heed the warnings, we still need to kind of come to the city, do our thing and just, you know, carry on.

UNIDENTIFIED MALE: Deep down I worry about it but, no, it doesn't change how I conduct myself or do business.

UNIDENTIFIED FEMALE: You're safer in New York now than you are in the small towns.

UNIDENTIFIED MALE: I think that everything is going to go, you know, smooth and just like every other day to work.

(END VIDEO CLIP)

CARROLL: New York City's Police Commissioner Ray Kelly also points out that the city has safely held several large scale events within the past week, namely the U.S. Open, that large NFL kickoff concert that we saw in Times Square, the special session of Congress, and he expects tomorrow's 9/11 ceremonies to go off safely as well. Wolf.

BLITZER: Jason Carroll on Thursday the president will be in New York City addressing the U.N. General Assembly. This note, in just a few minutes I'll be speaking live with the Homeland Security Director Governor Tom Ridge. Please join us for that. He'll explain why this decision to go to a high terror alert level.

First, here's your chance to weigh in on the story. Our web question of the day is this: Will you change your daily activities because of this new heightened terror alert? We'll have the results later in this program. Vote at cnn.com/wolf. While you're there, send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

He was blindfolded and taken to meet the masterminds of the September 11 terror attacks, but how did the terrorists contact him? Where are U.S. officials getting their warnings, which led to the heightened terror alert? Again, I'll speak live with the Homeland Security Director Tom Ridge.

Plus, the people who control Martha Stewart's fate have made a handoff, why the switch? And, the future of the war on terror, Colin Powell spells it out in a special one-on-one interview coming up.

(COMMERCIAL BREAK)

BLITZER: Welcome back. The Arab language network Al-Jazeera says it plans to broadcast audiotapes Thursday of an interview with two masterminds of the September 11 attacks. Earlier, I talked with Yosri Fouda. He's the network's chief investigative reporter who conducted that interview. He joined me from the Al-Jazeera newsroom in Doha, Qatar.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Yosri Fouda thanks for joining us. Tell our viewers in the United States, indeed around the world, how you got this exclusive interview with these two al Qaeda terrorists.

YOSRI FOUDA, CHIEF INVEST. REPORTER, AL-JAZEERA: I got lucky but I guess you need to do a little bit of work so that you can get lucky one day. Somebody called me and wondered if I was thinking of doing anything on the first anniversary, and if so, that he would be able to provide me with something top secret, which is the name of my monthly investigative program, and then asked for my fax number and he took it from there, starting giving me my first instruction going to Islamabad.

From there to Karachi and then, you know, messing around with me a little bit in the streets of Karachi, out of Karachi, being blindfolded until I was led eventually to the door of some flats. The door opened. The blindfold was taken away. I opened my eyes. I found a very important man indeed, Khalid Shaikh Mohammed himself.

BLITZER: And he confessed to being part of this group that attacked the World Trade Center and the Pentagon in the United States a year ago?

FOUDA: Not only part of it, he introduced himself immediately to me as the head of the al Qaeda military committee. He would go on and tell me about a meeting that was held during which a decision was taken to strike at America inside America, and then starts telling me details.

BLITZER: And so, there should be no doubt in anyone's mind in the Arab world, in the Muslim world, anyplace else around the world right now that al Qaeda and Osama bin Laden were behind these terrorist attacks of 9/11?

FOUDA: There shouldn't, but I guess that there will always be some diehards, some people especially in our part of the world who will always think of conspiracy theories. I certainly have no doubts in my mind based on this very unique experience that those 19 people were indeed on the planes which crashed onto those targets, and indeed that at least the people that I met Khalid Sheikh Mohammed and Ramzi Binalshibh (ph) was actually a mastermind in it.

BLITZER: Yosri Fouda of Al-Jazeera Television thanks for joining us.

FOUDA: Thank you very much.

BLITZER: And investigators are making progress in piecing together the September 11 plot. Today's "New York Times" reports on evidence linking Osama bin Laden directly to the hijackers and their ringleader Mohamed Atta.

Joining me now from New York is Richard Bernstein. He's a veteran reporter for the "New York Times," also the co-author of the new book "Out of the Blue," the newspaper's book on the September 11 plot and its aftermath, an excellent new book. Richard thanks for joining us.

First of all, talk to us a little bit about this front page story you have in the paper today about Mohamed Atta and the way he got to where he eventually wound up.

RICHARD BERNSTEIN, "NEW YORK TIMES": Well, we were trying at the paper to write a piece around the time of the anniversary that would bring together all the information that we had on how the plot took place, how these 19 men were able to carry it out and to piece together all the information that we had on who commanded them and what their connections with al Qaeda were.

And, recently, we got information from intelligence sources, not only in the United States but in Germany, that interviews with captured al Qaeda fighters being held in Guantanamo Bay and also interviews with Abu Zubaydah who up to that point was the -- still is the highest-ranking al Qaeda figure in custody telling us that Atta did, in fact, meet with bin Laden. First, that he went to Afghanistan and received training in Afghanistan and that he actually had an audience with bin Laden. BLITZER: And this is so-called the highest honor that one of these al Qaeda operatives could have to actually meet with Osama bin Laden?

BERNSTEIN: Yes. If you look at the history of al Qaeda and some of its earlier operations, we have a great deal of information, for example, on the 1998 bombing of two American embassies in Africa in Nairobi and Dar Es Salaam. There was a defector and there was one of the figures who was supposed to die in that attack but actually didn't and told his story to the FBI, which came out in court testimony.

So that it became clear to me then, looking at that trial, and the 1998 case, that that's what happened. When somebody was designated for an important mission, they would get an audience with bin Laden. They might get other privileges as a consequence of that audience. For example, they would be allowed to be armed, to carry their weapons in camp, even when bin Laden was present.

BLITZER: Richard, were you surprised that the federal government today went on a higher state of alert knowing what you know about al Qaeda's operations and their capabilities right now?

BERNSTEIN: No. The federal government has warned of the possibility of new terrorist actions several times in the past. I mean to some extent I don't know what information they have that led them to this particular alert.

Certainly, we know from 9/11 itself that we were insufficiently vigilant in the past even when there were signs, very important and conspicuous signs over the years that we were the target of this international Islamic army led by bin Laden. Maybe we're over compensating a little bit right now but it makes sense certainly to be vigilant.

BLITZER: Better to be safe than sorry. Richard Bernstein, the author of a new and important book "Out of the Blue" published by the writers and reporters of the "New York Times" thanks for joining us.

BERNSTEIN: Thank you.

BLITZER: And in just a few moments, the Homeland Security Director Tom Ridge joins us live on this new heightened alert; and later, a frightening look inside Osama bin Laden's inner circle as he heard news of the attacks. And, the president's niece under investigation for a possible drug relapse, we'll update you on what could be big trouble for Noel Bush. Stay with us.

(COMMERCIAL BREAK)

(AUDIO/VIDEO GAP)

(BEGIN VIDEOTAPE)

BOETTCHER (voice-over): As the hijackers board their planes in the United States, sources say only three people of those at the safe house in Afghanistan have exact knowledge of the attack, Osama bin Laden, his trusted military commander Mohammed Atef, and this man Khalid Sheikh Mohammed, wanted by the U.S. since 1995 for his alleged role in a plan to blow up U.S. airliners flying from Southeast Asia.

By the time American Airlines Flight 11 slams into the North Tower of the World Trade Center, say those intelligence officials, bin Laden is sitting beside a short wave radio and waiting for news. He says nothing. As people gather around, there is a bulletin about the first plane.

This seems to agree with Osama bin Laden's version of events in this tape obtained by the U.S. government in Afghanistan and released last December.

OSAMA BIN LADEN (through translator): We had notification since the previous Thursday that the event would take place that day. We had finished our work that day and had the radio on. It was 5:30 p.m. our time. I was sitting with Dr. Ahmed (UNINTELLIGIBLE). Immediately, we heard the news that a plane had hit the World Trade Center.

We turned the radio station to the news from Washington. The news continued and no mention of the attack until the end. At the end of the newscast, they reported that a plane just hit the World Trade Center.

BOETTCHER: Bin Laden begins weeping and praying, then shouts Allah Akbar, God is great, according to detainees who were present. Then, in a chilling sign of what is still to come, the coalition intelligence sources say Osama bin Laden raises his arm and lifts two fingers. This is perhaps what bin Laden's spokesman Suleyman Abu Ghaith is talking about in his account of what happened.

SULEYMAN ABU GHAITH (through translator): So I went back to Sheikh bin Laden who was sitting in a room with 50 to 60 people. I tried to tell him about what I saw but he made a gesture with his hands, meaning I know, I know.

BOETTCHER: Bin Laden himself also offers a clue to his behavior.

BIN LADEN (through translator): We were overjoyed when the first plane hit the building, so I said to them "be patient."

BOETTCHER: Bin Laden moves to an adjacent room with satellite TV. More people gather to watch with him and they begin to record coverage of the events, a tape which we found in the al Qaeda tape archives obtained by CNN. At this point, say the sources, bin Laden is silent. Then, cameras catch United Airlines Flight 175 as it crashes into the South Tower.

BIN LADEN (through translator): After a little while, they announced that another plane had hit the World Trade Center. The brothers who heard the news were overjoyed by it.

BOETTCHER: When the second tower is hit, bin Laden again prays and weeps, shouting Allah Akbar. Then he lifts three fingers. It becomes clear to the people in the room that he's signaling a third attack is to come, according to the intelligence sources. It does. American Airlines Flight 77 hits the Pentagon.

BIN LADEN (through translator): Those young men said in deeds in New York and Washington speeches that overshadowed all other speeches made everywhere else in the world.

BOETTCHER: Once again, bin Laden prays, weeps, and shouts Allah Akbar. This time he lifts four fingers. Those beside him wait for the fourth attack. Only the select few know United Flight 93 has already been hijacked and pointed toward Washington.

UNIDENTIFIED MALE: United 93, I understand you have a bomb on board.

BOETTCHER: The passengers on United Flight 93 rushed the cockpit, prevent the hijackers from achieving their aim, and the plane crashes in a Pennsylvania field. Even as the fourth attack fails, the Twin Towers are collapsing, something Osama bin Laden, who once worked in his family's construction business, has been planning for.

BIN LADEN (through translator): Due to my experience in this field, I was thinking that the fire from the gas in the plane would melt the iron structure of the building and collapse the area where the plane hit and all the floors above it only. This is all that we had hoped for.

BOETTCHER: By now it is nighttime in Afghanistan. Bin Laden's followers again watch as he prays and weeps. They wait for him to raise his hand to indicate a fifth attack. He never does.

Mike Boettcher CNN, New York.

(END VIDEOTAPE)

BLITZER: And, the war on terror one year later. Has the U.S. lost its focus, the Secretary of State Colin Powell one-on-one later this hour? Plus, oil tankers on alert, are they the next target? And, fed up with Martha Stewart, lawmakers say let the investigation begin.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN. I'm Wolf Blitzer in Washington. Coming up, the homeland security director, Tom Ridge, but first, let's look at some other stories making headlines right now.

One day before the first anniversary of the terrorist attacks on the United States, the U.S. government raises the terror threat alert to Code Orange. That's the second-highest level. The attorney general, John Ashcroft, says terrorists are considering strikes timed to coincide with the anniversary. President Bush says there's no specific threat, but the government is taking no chances.

The U.S. Navy is warning all ships in the Persian Gulf and Middle East of possible terrorist attacks. The Navy says, according to unconfirmed reports, al Qaeda has planned attacks on oil tankers in the Arabian Gulf and the Horn of Africa. But, Navy officials insist there are no indications an attack is imminent.

A private jet registered in Egypt was forced to land today, under fighter escort, at Charlotte-Douglas International Airport in North Carolina. Federal officials say the plane was not cleared to fly in U.S. airspace. Two F-16's from a South Carolina Air Force base were scrambled to intercept the plane after it took off from Columbia, South Carolina. The Cessna was on a presale inspection flight. Two Americans were onboard.

And as we showed you earlier, security in New York City is extremely tight, on this eve of the September 11 anniversary. I'm joined now by someone who knows New York security inside and out. Bernard Kerik is the former New York City police commissioner.

Commissioner, thanks for joining us. What do you make of this decision? Were you surprised that they're going now on this higher state of alert, the federal government?

BERNARD KERIK, FORMER NYC POLICE COMMISSIONER: No, not necessarily, Wolf. I think I have to agree with Governor Ridge. I don't specifically know the information that they have obtained, but they have access to information that obviously, they feel concerned with. And it's a judgment call. And I think, you know, the date being September 11 tomorrow, the information they've received, and analysis of that information, has led them to believe that there may be a significant threat or some increased threat. And I think the move is appropriate.

BLITZER: Commissioner, you were the police commissioner during 9/11. What advice -- specific advice do you have for our viewers out there? Many of them are probably confused. Do they just stay in their homes, in their apartments? Do they go outside tomorrow? What should they make from this high state of alert?

KERIK: Well, I think we cannot live in fear. The state of alert is primarily for the law enforcement agencies. It's to let them know they should be aware of certain things. The public, I think, they should be aware of their surroundings. If they see something suspicious, they should notify their local police authorities, but we can't be intimidated and we can't coward because if we do and when we do, we've -- basically, the terrorists have achieved their goal and that's to instill terror across this country. They don't have to do it by act; they can do it by just instilling fear and terror.

We can't be afraid. We can't be intimidated. We should go about our lives. We should celebrate tomorrow in reflection and think about the people we lost, think about the freedoms of this country and why we were attacked, and most importantly, think about the future and how strong we've become as a result.

BLITZER: Commissioner, practically speak, can your colleagues in New York City go on any higher state of alert than they're already on with all the events tomorrow, plus the General Assembly of the U.N., the president coming to New York City this week? What else can they do? KERIK: Well, right now, they are at an extremely high state of alert based on all of the things that's going on, based on the recommendations by the Justice Department. There is a U.N. General Assembly here. They're -- they'll do the best they can and I'm sure they'll do just fine.

Can you stop every single incident? No, you can't, but I think between what's going on in New York City -- I think the intelligence networks now that are working together, coordinating with local and state authorities, I think they're doing a much better job. And I think that New York City will be just fine.

BLITZER: Commissioner Kerik, as usual, thanks for your insight, appreciate it very much.

KERIK: Wolf, thank you.

BLITZER: Thank you. Good luck tomorrow as well.

And since last year's terror attacks, President Bush has stressed that the U.S. must be prepared to take the battle to the enemy, to strike preemptively. In part two of my interview with the secretary of state, Colin Powell, he makes this -- this strategy -- he says this strategy is not necessarily completely new.

(BEGIN VIDEOTAPE)

COLIN POWELL, SECRETARY OF STATE: If you see somebody coming at you and you can identify that enemy and there's no question in your mind that that enemy has a capability to strike you and strike you hard, has an intention to do so and is acting on that intention, then it seems to me a case is there for you to consider taking preemptive action and not wait to be struck.

If we had known where these perpetrators were, if we had known where Osama bin Laden or his lieutenants were and were planning this activity, of course, we would have taken preemption action against them. If we had known in Yemen where those individuals were who were planning to attack our ship, the USS Cole, of course, we would have taken action or worked with the enemies to take action.

So preemption is not a new strategy. It's been highlighted and it will be highlighted in the future by the president. He did it in his West Point speech and it's a part of our policy, part of our strategy, but it is not something that is revolutionary. It has always been one of the tools in our strategic toolbox.

BLITZER: But the -- a lot of people say that the main lesson learned from 9/11 -- and hindsight is obviously imperfect -- but the main lesson learned is you can't wait for the terrorists and their sponsors to strike, you have to strike at them first.

POWELL: Yes, but you have to know where to strike. You have to make sure that you're just not willy-nilly going around the world, hitting here and there. You have to know where they are. You have to make sure you've identified them. And if they're in another country, you have to respect the sovereignty in that country and at least as a minimum see if there are ways to work with that country.

What has been very reassuring to me and I'm very pleased about this is that more and more countries are taking that kind of action. Singapore rolled up a bunch of terrorists who were heading our way. Many other countries are pulling up these cells, all over Europe, all over Asia. People recognize that this particular terrorist, al Qaeda, and many other terrorist groups have to be dealt with now. And preemption isn't always a matter of a military strike. Very often, it's a quiet law enforcement operation. Very often, it's a successful intelligence operation that you may never know about, Wolf. Even you, Wolf, may never know about it.

(LAUGHTER)

BLITZER: But...

POWELL: That's preemption. That's prevention. That's going after them before they can get to us.

BLITZER: But, on a very serious note, if you look back at the coalition you put together right after 9/11, the whole world almost united. The Russians on board. The Chinese on board. Even countries like Sudan and Libya perhaps even cooperating. Syria and maybe even Iran on board. But right now, as the U.S. perhaps gears up for a preemptive strike against Iraq, the U.S. is pretty isolated in that kind of strategy. Even the closest allies in Europe are nervous about what the U.S. may be doing.

POWELL: We have a strong antiterrorism coalition. The coalition that President Bush forged after 9/11 is still very much intact, but it is not a blind check. Whenever we decide that there is some other action that should be taken, it is incumbent on us to discuss it with our coalition partners and see which of them agrees with us and wants to participate in whatever action might be appropriate.

With respect to diplomatic action, the coalition is united against Iraq, insisting that Iraq meet its obligations under the various U.N. resolutions. It took me a year of negotiating, but we got the smart sanctions back together. At the time when this administration came in office, the sanctions were falling apart and so, there is a good strong diplomatic coalition and a good strong political coalition against Saddam Hussein and the Iraqi regime. And if the president makes a judgment in due course that military action is appropriate, you could be sure we work with the members of our coalition and make our case.

BLITZER: Finally, Mr. Secretary, what do you want your grandchildren to remember about you and 9/11?

POWELL: I hope that they will remember that day as one of tragedy for the nation, but also in the days afterwards, they saw a nation they came -- that came together. They saw an international community that came together. And they saw what this country is really made of.

They're still young. They're 13 and 8, and they've never been through a war. Desert Storm means nothing to them, even though their grandfather was a chairman of the joint chiefs of staff at that time. So this is their first real tragedy or crisis of the warlike nature that they've ever seen. And in that tragedy, I hope they also saw strength and what the country really was capable of. And with respect to their grandfather, I hope they will look back and think of it, a pretty fair job.

BLITZER: Well, let's hope that we never have to look back at another 9/11 in our lifetime or anyone else's lifetime.

POWELL: Let that be our prayer.

BLITZER: Let's hope. Thank you.

(END VIDEOTAPE)

BLITZER: And CNN will devote tomorrow's programming to the first anniversary of the September 11 attacks -- "9/11: AMERICA REMEMBERS," coverage will begin at 6:00 am Eastern, 3:00 a.m. Pacific. We'll have a number of special reports on what happened that day, including, "INSIDE THE FIRE," "BUNKER CAPITOL HILL," "TARGET WHITE HOUSE," "INSIDE THE PENTAGON," and "UNITED 93 LINE OF DEFENSE." I'll be reporting from 6:00 a.m. tomorrow morning from the Pentagon until into the evening.

And the queen of clean, Martha Stewart, stuck in a mess. Is she guilty of insider trading? Hear what Congressional investigators have to say. Plus, rock cocaine -- Noelle Bush apparently caught again with illegal drugs. And a super recovery for a super man -- Christopher Reeve regains some movement. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Lawmakers are asking the Justice Department to investigate whether Martha Stewart lied to a House committee looking into insider trading allegations against her. I am joined now by Representative Jim Greenwood. He's the chairman of the House Energy and Commerce Subcommittee's investigative panel, which looking into Stewart's ImClone stock trading.

Thanks, Congressman, for joining us. What's the practical implication of what you've done today?

REP. JIM GREENWOOD (R), ENERGY AND COMMERCE COMMITTEE: Well, we asked the Justice Department to conduct a criminal investigation as to whether Miss Stewart violated the Federal False Statements Act when she, through her attorneys, communicated to us that in fact she had no inside information about the ImClone company before she sold her stock on December the 27th.

We didn't want to do this. We would have preferred that she come in and clear the record herself, but because -- even after negotiating with her attorneys until 2:00 this afternoon to get her an agreement that she would speak with us, it was clear indication that she would take the Fifth Amendment if called before the committee. So we felt we had no choice but to refer this matter to Justice and put it behind us.

BLITZER: And you expect the Justice Department to open up a criminal investigation right now.

GREENWOOD: Well, the Justice Department has been investigating this matter for some time. Sam Waksal, the CEO, has been indicted. The company has been -- the Justice Department, I should say, has been interviewing the brokers involved in Miss Stewart's sale. So they're very interested in the case and we think that we needed to give them all the information that we had gathered for their criminal investigation.

BLITZER: An attorney representing Martha Stewart issued a statement among other things. He says, "I'm glad that the political aspects of this matter will now terminate. And I'm confident that the investigation will lead to Miss Stewart's exoneration." You know, you're getting hammered at least by some of some fans out there of Martha Stewart who say, "Why are you going after her? She's just small potatoes when there are so many bigger, potential crooks out there."

GREENWOOD: Well, first of all, we didn't go after her. We were involved in a series of investigations, starting with Enron and Arthur Andersen, and ImClone, and we just happened to come upon the fact that she was one of those who was trading her stock with the others. We weren't searching for her.

This matter could have cleared up months ago by her had she simply stated the facts. She chose not to do that. She chose not to be interviewed. And she's not -- this is not some little House for all selling stock between cooking loaves of banana bread. She's a CEO of a major company, she's a former stockbroker and she sits on the board of New York Stock Exchange, so this is -- she's not just an average American out there. In fact, the average American is hurt when insiders sell stock before the average American knows about impeding news.

BLITZER: Good to have you on the program, Congressman Jim Greenwood. We'll be continuing to stay in touch with you, I'm sure, from time to time. Thank you very much.

And let's check these other stories on this evening's "Newswire." More trouble for Noelle Bush, the daughter of Florida's governor and the president's niece. She's under investigation now after being caught with a substance that tested positive for cocaine. It happened last night at the drug rehab center where she's staying. No charges have been filed yet, and she remains at the center.

NBA star, Chris Webber, is talking about his troubles. At a news conference about an hour ago, the 29-year-old Sacramento Kings forward vowed he'd be vindicated of obstruction of justice charges. He's accused of lying about taking money from a team booster while he played at the University of Michigan. That man, Ed Martin, pleaded guilty in May to money laundering charges.

(BEGIN VIDEO CLIP) CHRIS WEBBER, SACRAMENTO KINGS: This case is about a 60-year-old man, a 65-year-old man, who benefited -- who befriended kids such as myself, ages 14, 12, some 19, preying on our naivete, our innocence, claiming that he loved us and he wanted to support us, and later, wanting to cash in on that love and support that we thought was great.

(END VIDEO CLIP)

BLITZER: And almost seven years after a horse-riding accident left him paralyzed from the neck down, actor Christopher Reeve is showing some improvement. He's experiencing movement in his fingers and toes, and he's able to tell the difference between hot and cold. It's a development Reeve's doctor calls "unprecedented." Reeve, best known for his role as "Superman," had hoped to walk again by his 50th birthday, which is about two weeks from now.

Health news making headlines for smokers who want to kick the habit. Take a deep breath: gum and patches may not necessarily be a permanent fix. The full story when we come back, but first, today's "News Quiz."

According to the Surgeon General, what is the best way to quit smoking? Quitting cold turkey, chewing on straws, counseling, nicotine replacement therapy? The answer coming up.

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BLITZER: Earlier we asked: What is the best way to break a nicotine addiction? According to the Surgeon Generals' Office, the best way to quit smoking is a combination of counseling and nicotine replacement therapy, such as the nicotine patch, inhaler or gum.

And smokers who turn primarily to nicotine replacement products to help them kick the habit may be disappointed with the results. A new study finds that patches, gum and other nicotine replacements helped some heavy smokers stay away from cigarettes at first. But the success rate after a few months dropped to around 20 percent. That's the same rate for smokers who did not use the products. For light smokers, patches and gum provided even less help at first, but their eventual success rate was higher. The study was conducted in California.

Let's go to New York now and get a preview of "LOU DOBBS MONEYLINE," beginning right at the top of the hour -- Lou.

LOU DOBBS, HOST, "LOU DOBBS MONEYLINE": Wolf, thank you very much. Tonight, we'll have complete coverage of heightened terrorist threat alert. Americans at home and abroad are told to be extra cautious and vigilant. We'll have live reports for you from the White House and the Pentagon tonight.

Martha Stewart's fate is now in the hands of the Justice Department. A Congressional committee has asked the Department of Justice to investigate whether Stewart acted on insider information. We'll have that report. And tonight, we'll have an exclusive interview with Martha Stewart's attorney. And investors shook off this latest terrorist threat warning. Stocks rallied for a third straight session. We'll have complete coverage of the market. All of that and a great deal more ahead on "MONEYLINE" at the top of the hour. Please join us. Now back to Wolf Blitzer -- Wolf.

BLITZER: Thank you very much, Lou. We will be joining you.

Time is running out to weigh in on our "Web Question of The Day." You'll -- will you change your daily activities because of the new heightened alert? Log on to CNN.com/Wolf to vote. The results when we come back.

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BLITZER: Our "Picture of The Day" comes from New Zealand. As Americans prepare to mark the first anniversary of the terrorist attacks. It's already Wednesday on that side of the world. Memorial services are among the events being held in New Zealand to mark the anniversary. One choir performed Mozart's "Requiem in Offland" (ph).

Earlier we asked -- will you change your daily activities because of the new heightened terror alert? Thirteen percent of you said, "yes," 87 percent of you say "no." Remember, this is not -- repeat, not a scientific poll.

That's all the time we have today. I will see you tomorrow throughout the day, our special coverage for the September 11 anniversary. Beginning at 6:00 a.m., I'll be over at the Pentagon. I'm Wolf Blitzer in Washington.

"LOU DOBBS MONEYLINE" begins right now.

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