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CNN Wolf Blitzer Reports

What Evidence Does Modesto Police Department Have Against Scott Peterson? A recap of Amazing Footage Taken From War in Iraq

Aired April 21, 2003 - 17:00   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.


(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR: Happening now: Scott Peterson before a judge. Could he have killed his wife and his unborn son? What's the evidence? Do police have a motive?

Day one of a new era in Iraq, with a new man in charge.

RET. U.S. ARMY. LET. GEN. JAY GARNER, U.S.-APPOINTED HEAD OF INTERIM IRAQI GOVERNMENT: The new ruler of Iraq is going to be an Iraqi. I'm not -- I don't rule anything.

They're tasting freedom for the first time. But will they turn on those who gave it to them?

Who's next after Iraq? Should other leaders be nervous? The former CIA Director James Woolsey speaks out.

JAMES WOOLSEY, FMR. CIA DIRECTOR: I think the key thing is to keep the Syrians and Iranians from using terrorism.

BLITZER: One minute they're millionaires, the next -- we'll hear from U.S. soldiers who found a fortune.

UNIDENTIFIED MALE: I didn't know what to think (AUDIO GAP).

BLITZER: And a few weeks that changed history, and changed these reporters' lives.

WALTER RODGERS, CNN SR. INTERNATIONAL CORRESPONDENT: You've never seen battlefield pictures like these before.

BLITZER: Today, gripping accounts of danger on the front lines.

(END VIDEOTAPE)

BLITZER: It's Monday, April 21, 2003. I'm Wolf Blitzer reporting live from Washington. We're tracking several developing stories right now.

First, in California, Scott Peterson suspected of killing his wife and unborn son just went before a judge to answer the accusations. You're looking at new pictures just shown for the first time, within only the past few minutes as he walked into the courtroom. We'll go live to Modesto with new information on the case. Also, we're live in Baghdad where -- where another top man loyal to Saddam Hussein is captured.

And another dramatic arrest unfolded before our own cameras. Law and order returned to Baghdad -- look at this -- with a vengeance.

And making his first appearance in the Iraqi capital, retired U.S. Army Lieutenant General Jay Garner. He's the man who will oversee Iraq's new civil administration. Today, General Garner downplayed his power position.

And over at the Pentagon, the defense secretary, Donald Rumsfeld, downplayed America's role in Iraq for the future.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, DEFENSE SECRETARY: The impression that is left around the world is that we plan to occupy the country, we plan to use their bases over the long period of time and it's flat false.

(END VIDEO CLIP)

BLITZER: More on the new Iraq in just a moment.

But we begin with the latest twist in the Laci Peterson mystery. Only moments ago her husband appeared before a judge in Modesto, California. CNN's Rusty Dornin is outside the courthouse with all the late breaking developments -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Wolf, you could have heard a pin drop when Scott Peterson, shackled and handcuffed, walked into the courtroom, sporting a clean shaven face, his hair, however, is still blond, wearing, of course, the orange jump suit. Did not look at his family or anyone in the courtroom, sat down. The judge began reading the counts of double homicide against him. He replied in a very clear voice, "I am not guilty." He also denied the special allegations and enhancements on those double homicide charges.

Now, before the proceedings started, when Sharon Rocha, Laci's mother came into the courtroom, she walked in by herself. She sat down and there was a very emotional moment. Jackie Peterson, Scott Peterson's mother, got up, came over and hugged Sharon Rocha in her chair and said, I am sorry. We could not hear what Sharon Rocha said back. Jackie Peterson went back into her chair.

And as soon as Scott Peterson came into the courtroom, that's when Sharon Rocha just broke down in tears and, of course, was comforted by her husband, Ron Grantski.

Also the judge did ask Scott Peterson during the proceedings are you in a position to hire a lawyer. He said, "No, I am not," because there was a lot of indication that he was going hire Kirk McAllester (ph), who had been an attorney early on. He had the head of the public defender's office appointed to his case, Tim Bazar (ph). He will be the one handling the case.

Now May 6 there will be a bail hearing and May 19 there will be a pretrial hearing also here -- Wolf.

BLITZER: When you say, Rusty, that Jackie Peterson, Scott's mother, went over to the mother of Laci Peterson and said, "I am sorry," What was the context? Sorry that her -- her son got into this, sorry that Laci Peterson was dead? Was there a relationship between these two families over these many months since Christmas Eve?

DORNIN: Well, there was a relationship, of course, very close on. Jackie, the Peterson family, along with the Rochas used to come into the volunteer center quite often. I spoke to Jackie Peterson in the first month of the investigation, before they closed down the volunteer center. So they were very close family and it -- and even if the statements and the interviews that the Petersons have done, they've always indicated how horribly sorry and moved that they were by Laci's death, that they loved Laci very, very much. They are just upset because they are maintaining that their son is innocent in this case -- Wolf.

BLITZER: And they're not backing away from that. The words I am sorry from his mother doesn't seem to be suggesting that they're now convinced he did it.

DORNIN: No, they are not convinced he did it. They are -- they've been criticizing the Modesto police department all along, claiming that actually the Rochas have been brainwashed by the Modesto police and that their son was not involved in this.

BLITZER: All right, Rusty Dornin outside the courthouse. We're going to have much more coming up. Thanks, Rusty, very much.

All of this follows continued and adamant denials by Scott Peterson that he had anything to do with his wife's disappearance. Here's what he told a reporter from CNN affiliate KOVR back in January.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I know that law enforcement officials have told me that you won't take a lie detector test, that you've waivered back and forth on that. Why?

SCOTT PETERSON, LACI PETERSON'S HUSBAND: Well, let me say this about the investigation. I gave you two times earlier, 9:30 and 10:30, when the dog was returned here. Investigators on both sides, law enforcement and private asked me not to comment anymore about times, about conversations I had with the police, about the possible polygraph, you know, tests, if I've taken or if I've not. And there are, you know, things surrounding the investigation so that it can be clear. So I am simply not going to comment.

UNIDENTIFIED FEMALE: On why you're not going to take it?

S. PETERSON: I'm not going to comment if I have or have not taken a polygraph with the police.

UNIDENTIFIED FEMALE: The life insurance policy -- why take one out on Laci -- $250,00?

S. PETERSON: We have life insurance policies in place that were established when we bought this home that you're in right now, two years ago. There was no life insurance policy taken out recently, as has been reported in the "National Enquirer."

UNIDENTIFIED FEMALE (voice-over): After remaining silent for over a month, Scott says he decided to speak out because he felt the focus had shifted from Laci to him.

S. PETERSON: In hopes that people will go, You know what, if I think he had some involvement, if I don't think he had some involvement, that doesn't matter because Laci is what mattered and she's out there missing and she needs to be home with her families. So I don't care to defend myself. I don't care what people think of me.

(END VIDEOTAPE)

BLITZER: That was Scott Peterson speaking to our affiliate KOVR at the end of January.

Joining me now from New York to talk about this case against Scott Peterson are Lisa Bloom of Court TV and CNN's own legal analyst, Jeffrey Toobin.

Lisa, let me begin with you. Do we have any evidence on the public record yet implicating Scott Peterson?

LISA BLOOM, COURT TV: Well, I would say the best evidence, Wolf, is that he places himself at the crime scene by his own story that he went fishing 75 miles from his home on Christmas Eve. The bodies washed up within three miles of the location that he gave. I think that's significant.

Also, flight indicates consciousness of guilt legally. What was he doing with a changed appearance, $10,000 in cash on his way to the Mexican border when the bodies were found?

BLITZER: What about that, Jeffrey? Let's talk a little about the evidence. Apparently today in the court they did suggest that the murder was conducted not at the site where the -- the body floated up, but at the house in Modesto. That seems to suggest they might -- may have some harder evidence than was led -- that we were led to believe.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Remember, Wolf, they have conducted repeated searches of that house. They have not said what they discovered. In fact, the Modesto police has been very closed mouth about what evidence they have found here.

What they said in court today suggests that they have some proof that the murder took place at the -- at the house. But it is important to say in fairness to Scott Peterson that based on the public record, there are a lot of holes in this case. You know, what is the murder weapon, are there any eyewitnesses? Does -- does -- is there even a cause of death established for either of the victims. The answer to all those do not yet implicate Scott Peterson and you know, for someone calling this a slam dunk case, it really just doesn't look like a slam dunk case based on the evidence that's in the public record.

BLITZER: And presumably, Lisa, we won't know what that evidence is at least until around May 19 when that preliminary hearing takes place. Is that right?

BLOOM: Well, that's right. The press did report that certain cement containers were taken from Scott Peterson's home and the way these bodies were found indicates that the limbs may have been weighted down underwater, That's where they still may be.

But don't forget, Scott Peterson seems to be the only one to have had a motive to have committed the murders. The two oldest motives in the book, sex and money, a $250,00 life insurance policy and the fact that he started an affair a month before the death of this woman. Other than that, I'm not aware of anyone who would have a motive to commit this killing.

BLITZER: But that sounds, Jeffrey, very circumstantial. A lot of people have affairs and they don't wind up killing their spouse.

TOOBIN: That's right. I mean, there is no question that there is a lot of evidence of motive here. But in terms of actual physical testimonial evidence, tying -- tying Scott Peterson to the crime to the crime scene, to the bodies of his wife and infant or unborn son, it is simply not there yet, as far as we know. It's important to emphasize that the Modesto Police have not tried their case in public. There may be evidence that we don't know about, but in terms of what's out there, there is not a lot of evidence, except relating to motive and the discovery of the body.

BLITZER: We'll be patient and wait for that. One final question, Lisa, for you. The double homicide charge, an unborn baby, is that a definite as far as California law is concerned, that an 8- month-old fetus is definitely considered a human being?

BLOOM: Yes, it is very clear under California law, Wolf. That law enacted 30 years ago in response to a case very similar to this one, where an eight-month pregnant woman was murdered, and that case set the precedent that established that it is fetal homicide. It is murder in California to kill an unborn baby.

BLITZER: All right, May 6 the bail hearing, May 19 the preliminary hearing, presumably probable cause to show cause going forward. Lisa Bloom, Jeffrey Toobin, thanks to both of you for helping us better understand some of the legal intricacies of this case. The family, by the way, of Laci Peterson will be making a public statement. They're planning to do so in just a couple of hours. CNN will bring it you to you live. That's at 7:00 p.m. Eastern, 4:00 p.m. Pacific.

Let's turn now to the daunting task of creating a new Iraq. In Baghdad, there is a new man in charge today, at least for the time being. CNN's Nic Robertson reports from the Iraqi capital. (BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): On his first day in Baghdad, heading the U.S. reconstruction of Iraq, retired U.S. General Jay Garner seemed keen to play down local rumors he's come here to rule the country.

GARNER: I don't rule anything. I'm the coalition facilitator to establish a different environment where these people can pull things together themselves.

ROBERTSON: For now, pulling anything together here can be tough. Even lining up for fuel causes heated debate. Gassan (ph), the manager of the government-run filling station, weighs in to calm nerves shattered by war and looting. His message for Garner, relieve the pressure on his station. "Use the country's oil reserves," he says, "so that all the stations are operating. That will spread hope in the citizens' minds."

State fuel truck driver Jassim (ph) has a more personal call. "Honestly, our salaries are not enough. How can I live on less than $1 a day?"

Opinions at the pumps, however, on whether Garner can deliver, divided. "We don't accept him," says Khadim (ph). "We need an Iraqi. What can he understand about us?"

We don't know him," says Yacub (ph). "We'll see how he does, and then we'll have an idea."

A few miles away, at the state-run Al Dora oil refinery, Iraqi engineers have just restarted fuel production. Technicians tend government-owned equipment, much of which has seen only sporadic investment since U.S. companies first built the plant in 1952.

Keeping this cash-generating industry going, they say, will actually need little help from Garner.

HUSSEIN SULIMAN ALI, DORA OIL REFINERY: Inside the refinery, only to protect the refinery, not to help us with the operation.

ROBERTSON: At the gate, oil workers armed with Kalashnikovs keep guard where less than a week ago they fought off looters.

(on camera): Here at the Oil Ministry, one of the only Iraqi government buildings where U.S. troops prevented looters destroying the premises, Iraqi officials have already begun talks to choose a new oil minister.

(voice-over): Baghdad's self-appointed governor, Mohammed Zubaidi, who is yet to be recognized by Garner's office, plans sending his deputy as the top Iraqi representative to the OPEC meeting in Vienna this week.

For Garner, likely sorting the leadership post will prove the trickiest of his early tasks; restoring basic services, his most pressing. And reconstruction, the most enduring. No small feat for a man trying to keep a low profile.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: And if you're just joining us, another most wanted Iraqi is captured. Also, witness justice. Look at this, with a vengeance. CNN cameras roll as law and order returns to Baghdad. The dramatic arrest is coming up. Plus, live from the front lines, the reporters who risked everything to bring it to you as it happened. Walter Rodgers, Ryan Chilcote, Alessio Vinci, all will join us live to describe their most harrowing wartime experiences.

And multi-million-dollar find. U.S. soldiers stumble on a fortune in Iraq. Hear what they plan to do with the money. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. He was the queen of spades in that deck of cards, representing the most wanted leaders of the Iraqi regime. But Muhammad Hazmaq Al-Zubaydi is now in custody, according to the U.S. Central Command. At number 18 on the list, he's the most senior official arrested so far. Al-Zubaydi was the central Euphrates regional commander and a one-time deputy prime minister.

Police in Baghdad are eager to prove they can bring justice to the city, now scarred by looting and lawlessness. Today, they rounded up a group of would-be bank robbers as a crowd of Baghdad residents looked on. More now from CNN's Jim Clancy, who's joining us live from Baghdad -- Jim.

JIM CLANCY, CNN CORRESPONDENT: Well, Wolf, certainly the security situation here has improved dramatically. But I can tell you we just heard gunshots a few seconds ago out on the streets. Probably it was looters, trying to break into someone's home. We don't know for sure, but this repeats itself every day, every night.

We were driving through the city streets, in fact, just by the headquarters of the International Committee of the Red Cross today when we heard gunshots. We got out of the car, went to take a look and saw everybody hiding behind a wall, and we'll pick up the story from there.

(BEGIN VIDEOTAPE)

CLANCY (voice-over): Firing their newly issued AK-47s, Iraqi police moved in to thwart the broad daylight bank burglary in the center of the city. It was a vivid example of how officers have returned to the streets and confronted brazen looters.

With the chase on in earnest, squad cars and officers on foot chased after suspects desperately trying to flee the scene, dressed in athletic outfits. This man was caught and stuffed in the trunk of a police cruiser as he underwent what might be described as accelerated interrogation, Iraqi style. His pleas that he was also chasing the suspects obviously fell on deaf ears.

While it could be argued that Baghdad's finest were being a bit too eager to get back to business as usual, the public seemed fully supportive. They ignored repeated warnings to retreat to safety out of the line of fire. Apparently, no one wants to miss the latest episode of the return of justice to the streets of the city.

This eyewitness said the suspect fired at police, and he yelled a few choice words at him. "You're a thief, you're not a good citizen, you've sold yourself," he shouted.

Meantime back at the bank, U.S. troops aboard a Bradley fighting vehicle obliged the police, and pointed their cannon at the bank entrance while officers scoured the scene for our suspects. One other man was picked up nearby and held at the scene.

(END VIDEOTAPE)

Wolf, a note on Muhammed Hamzaq Zubaydi, the man who was picked up, No. 18 on the most wanted list. It is not because of what he knows, not because of some information he might have about weapons of mass destruction, it is most likely he earned that level on that most wanted list because he was involved in the killing of tens of thousands of Shia Muslims when they rebelled against the government in 1991. He was also involved in the repression of the (UNINTELLIGIBLE) Arab. So, a big figure certainly, one who could face a war crimes tribunal.

BLITZER: The queen of spades, No. 18 on most wanted list captured. Jim Clancy live with all the details for us from Baghdad tonight.

Thanks, Jim, very much.

Shiite Muslims filled the streets of Karbala in central Iraq earlier today. Some walked 50 miles to reach the tomb of a Muslim martyr who was killed more than 1,300 years ago. The pilgrimage which involves the city of Najaf was banned during the decades when Saddam Hussein ruled over Iraq. Many of the marchers are calling for the establishment of an Islamic state.

They risk their lives to cover the war. But what was going on when the cameras turned off?

Walter Rogers and Ryan Chilcote will join us live immediately when we return.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I can't here what you said, but you can hear for yourselves, more live firing here at Umm Qasr.

(END VIDEO CLIP) BLITZER: Many said it has been a war covered like no other. Reporter on the air live brought it to audiences around the world in real time. Something journalism schools may be discussing for years to come.

CNN's Walter Rodgers was one of those reporters covering American troops leading that charge to Baghdad. The 3rd Squadron of the army's 7th Cavalry. He'll join us live in a moment.

But here say quick look at some of the defining moments for Walter Rodgers.

(BEGIN VIDEOTAPE)

RODGERS: The pictures you're seeing are absolutely phenomenal. These are live pictures of the 7th Cavalry racing across the desert. You've never seen battlefield pictures like these before. What you're watching here is truly historic television and journalism.

This is a live, as it happens, real time war. Again, a few seconds ago the Iraqis fired another rocket-propelled grenade over our heads.

It was the army which assigned me to the 3rd Squadron 7th Cavalry, and that was extremely fortuitous. It was like sitting in a poker game and drawing four aces.

We're hearing incoming. We're not sure what it is. Good-bye, we've got to dive for vehicles, we think. See you. Bye.

This giant wave of steel that grows every hour is ever pushing northward, ever pushing toward the Iraqi capital.

This Iraqi soldier that you're looking at has been lying between these two metal bars for more than a few hours now, increasingly as he was given water and after the IV went in his arm, it was as if he suddenly realized he wasn't going to die in a dirty ditch. And in point of fact, began smiling and trying as best he could to thank the CNN crew as well as the army medics who came along and treated his wounds until he could be evacuated.

(END VIDEOTAPE)

BLITZER: Joining us now is Walter Rodgers. Walter, great job.

How did this war change you, if it did change you?

RODGERS: Well, you know, revisiting those tapes, Wolf, as I watched them and listened to them now, I realize I deliberately understated the degree of danger we were in so as not to hype and not to exaggerate the situation. It was -- there were some really dodgy times there -- Wolf.

BLITZER: Many of your colleagues, young war correspondents, some veterans who have been through these kind of situations say what they saw up close and personal made them sick. They're having nightmares. They had to walk away from it.

Did you have that kind of an experience?

RODGERS: No, but then again this was not my first war. I can say that last night was the first night since I got out that I did not dream about the army and being in the desert. But no, it didn't make me sick and it is not first time I've seen this. And I think it is very important when journalism schools discuss this that they realize the import of sending seasoned, experienced reporters to out to cover war -- Wolf.

BLITZER: Was there a defining moment for you that seemed to crystallize the events in your mind?

RODGERS: No, I don't think so. There were times, for example, when you would go into combat two to three days consecutively, and realize -- and want to say, OK, Atlanta, I've done my bid, I earned it again and the army would say no, we have another week or two weeks of fighting. That was the most amusing thing about it for me this was not just an in-and-out situation, you were in for a penny, in for a pound, in for the duration -- Wolf.

BLITZER: You look great in those desert fatigues. You look much dapper now in London. Walter Rodgers, I'm sure your family, everybody is happy you're back safe and sound. We're especially happy. Thanks for the great work.

Let's move on now.

CNN's Ryan Chilcote was embedded with the 101st Airborne Division. Moving with that unit all the way from Kuwait to Baghdad. He'll join us live in just a moment. His reports, of course, gave our viewers a firsthand look at some of the obstacles that troops face including violent weather.

(BEGIN VIDEO CLIP)

RYAN CHILCOTE, CNN CORRESPONDENT: The entire fleet of the 101st Airborne has been grounded. So in terms of -- I mean, this is an air assault division. They specialize in moving troops to the battlefield with their helicopters. So, they obviously can't do that right now. In addition to that, a lot of -- when this kicked up, this sandstorm began, I don't know if you're getting an idea of it, it is snowing sand now. When this began it came up so quickly, and violently that a lot of the pilots out there, they had to put their helicopters down on the ground right away, wherever they were.

Military convoy was moving through city today, actually trying to make its way to the mosques to establish contact with the cleric of the Ali Mosque here in the city of al Najaf when for various reasons had it had to stop. And people around the convoy, this is primarily a Shia Muslim city, really just started chanting pro American and anti- Saddam slogans. Obviously, there is very little love lost for president Saddam Hussein here in southern Iraq.

(END VIDEO CLIP) BLITZER: And joining us now live is Ryan Chilcote. Let me ask you the same question asked Walter. A defining moment for you during the weeks of war coverage?

CHILCOTE: Well, sure, Wolf. Difficult to single out one moment. There was a time just about a week ago when the troops were out on a patrol in southern Baghdad, it was supposed to be an uneventful patrol, they've been told about a weapons cache inside of a residential building. They went inside the build and found 13 surface-to-air missiles. Almost uneventful considering the number of weapons that they were finding inside of those residences, inside of buildings in Baghdad.

We came out of the building and there was a soldier sitting on a tank and there was a crowd of boys standing around him and he had a trial-sized bottle of Tabasco sauce and he was giving the kids a taste of Tabasco and all the kids were tasting and going, ooh.

And right nearby there was this beautiful girl wearing a dress. She couldn't have been older than 5-years-old. And she had a tray and on it she had at tea cups and she was serving the soldiers hot tea. That's a juxtaposition in moments that I don't think I'll ever forget.

BLITZER: Did you ever think your life was in danger, Ryan?

CHILCOTE: Yes, there were a couple of times when I was nervous. It was mainly because I felt vulnerable.

Actually the funny thing is during the fire fights, I felt the least nervous because I sort of knew what I was getting into, it was pretty clear. There was one time when I was on top of a hill just north of Hala, we were doing a live shot, waiting to do a live shot, actually. It got dark and we decided we felt pretty safe, we decided turned on the white lights to light me up so you can see me.

So I was looking out over the ruins of ancient Babylon, actually. And in front of me all I could see was darkness, just black. And obviously anyone else could see, if they were down below, was the white that was lighting me up. And that was, of course, what tipped off one man with a mortar to send in a mortar round.

That scared me pretty well. We came scurrying down the building. And the next fear, of course, because we hadn't been with troops at the time, was that we wanted to approach U.S. troops but they didn't know we were coming. So even more than the mortar fire scared me, I was scared of getting shot by U.S. troops who didn't know who was approaching them.

BLITZER: Friendly fire, as they say. Ryan Chilcote. I'm sure our viewers are thrilled to see you all cleaned up, shaven, no more sand, more dirt all over your face. You look great. Thanks for the good work, as well. Always appreciated your live coverage from the 101st Airborne Division. CNN's Ryan Chilcote.

We're going to have more on these embedded journalists, what they saw, what they couldn't tell us during the course of the war. We also, of course, would love to hear from you. "Our Web Question of the Day" is this, should the military allow embedded journalists to report on future conflicts. Please vote at cnn.com/wolf. We'll have the results at the end of this program.

We have much more coverage coming up. First, let's get the latest headlines. For that, to Anderson Cooper in the CNN Newsroom in Atlanta -- Anderson.

(NEWSBREAK)

BLITZER: Where's Saddam Hussein and what about his chemical and biological weapons? I'll speak with the former head of the CIA, ask him about the key reasons President Bush went to war and what happens next.

Plus, Middle East despots on notice. Will the war in Iraq have a ripple effect in the region? We'll take a closer look.

And multimillion dollar jackpot. Not the Lotto, but in Iraq. Hear what these soldiers plan to do with the money. Millions, millions of dollars they found stashed away. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. As the fall of the Iraqi regime just the beginning. Are sweeping changes in store for the Middle East? Let's go live to the White House our senior White House correspondent John King is standing by -- John.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Wolf, the president certainly thinks so. On one hand he says the war continues. His top man in Baghdad says the priority is restoring water and electricity.

But if you listen closely to the president these days, he makes clear he believes the fall of Saddam Hussein will have dramatic political impact across the entire region.

(BEGIN VIDEOTAPE)

KING (voice-over): Iraq's post-war political direction is anything but clear. Yet already there is a ripple effect across the region.

MARTIN INDYK, BROOKING INSTITUTION: The people see what's happening and say why can't we have this for ourselves, too? Why can't we have democracy? Why can't we have free demonstrations?

KING: Religious, ethic and other rivalries make shaping post-war Iraq a daunting challenge. But the president talks optimistically of a model democracy.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We believe that people across the Middle East and across the world are weary of poverty, weary of oppression and yearn to be free. KING: It is a message aimed squarely at Syria and Iran, two of Iraq's neighbors on less than friendly terms with Washington. But Mr. Bush's words are not going unnoticed in more friendly Arab capitals like Riyadh and Cairo.

HISHAM MELHAM, "AS-SAFIR": Neighboring states are not going to look kindly at the possibility of the flourishing of politics in Iraq or the empowerment of the Iraqi people because they did not allow -- they are not going to empower their own people in any serious way.

KING: There are cautious democratic reforms under way in the region. Bahrain last year re-established its parliament, and women were among the voters and the candidates.

Morocco's King Mohammed won international praise for last year's national assembly elections. And Jordan's King Abdullah is taking modest steps toward economic and political reforms.

But Mr. Bush's talk of more dramatic reforms is viewed suspiciously by those in the region already worried about too much U.S. influence over the new Iraq.

MELHAM: The United States would be in a position to neutralize Syria, isolate Iran, marginalize Saudi Arabia, determine oil policy, determine the outcome of any Arab-Israeli negotiations. So this is how many governments see the American project (UNINTELLIGIBLE).

KING: And even many who applaud the president's focus suggest a go slow approach in Iraq and across the region.

MELHAM: We have to be always conscious that this process can be hijacked by people who are not democrats, who are extremists in religious garb who have a different definition of democracy which is one vote, one time until they gain power.

KING: The dramatic events in Iraq are being covered extensively by Arab media outlets. And the White House believes images like these will leave other governments in the region no choice but to give their own citizens more of a voice.

(END VIDEOTAPE)

KING: And the Bush White House is well aware on the Arab street the next big test of U.S. motives in the region is how this president deals with the Arab-Israeli conflict. They say here at the White House that the road map for peace between Israel and the Palestinians is ready, but held up because of an ongoing dispute between Yasser Arafat and his choice to be the new Palestinian prime minister -- Wolf.

BLITZER: John King at the White House. Thanks, John, very much.

And while the war in Iraq may indeed have far ranging effects, can the U.S. actually declare victory if it doesn't find Saddam Hussein? Earlier I put that question to the former CIA Director James Woolsey. He joined me from San Antonio, Texas. (BEGIN VIDEOTAPE)

JAMES WOOLSEY, FORMER CIA DIRECTOR: Oh, I think it can be, certainly. He may be buried under tons of rubble somewhere, but I think probably eventually we will find either his remains or him. But we can proceed effectively, I think, anyway, although it would sure be nice to get him.

BLITZER: Because as you know, a lot of Iraqis are after decades of his rule are still worried he might still show up. So they want hard evidence that he's gone one way or another.

WOOLSEY: Well, that's very understandable. I think the key thing is to keep the Syrians and Iranians from using terrorism and support for the remaining pockets of Baathists in Iraq and the like to disrupt Iraq and turn it into something like Lebanon in the early '80s. Bashar Assad already said in late March that's what he wanted to do, and I think the Iranian government, the mullahs, are not being quite so candid, but I think that's what they want to do.

I think that is what will frighten the Iraqi people the most, and if we can keep that from happening, we can deal with some period of time when we don't know exactly where Saddam or his remains are.

BLITZER: Well, let's talk about both of those contingencies. Briefly, do you believe the Iranians are meddling now in Iraqi affairs?

WOOLSEY: I think the Iranian mullahs are. They have a serious problem that they are very unpopular with their own people, with the young people, teenagers and younger half of Iran, with the women, with the reformers, and increasingly they're unpopular with their own grand ayatollahs, like the conservative Ayatollah Tahari (ph), who lit into them last summer. So they badly need to undermine democracy in Iraq, and they talk out of both sides of their mouths. But I think the mullahs, the people like Khameini and those who follow him are very much trying to undermine democracy in Iraq.

BLITZER: Do you think Bashar Al-Assad is beginning to get the message that he's in deep trouble unless he stops supporting groups the State Department brands as terrorists, like Hezbollah?

WOOLSEY: He's beginning to say that he's getting the message, but that may be a different thing in his case than his actually getting the message. I think when we're in the position we're in here, we need to push him pretty hard to do a number of things he needs to do. He needs to get out of Lebanon, for example. Lebanon was the Arab world's one successful democracy. And Syria in effect and the PLO in the '80s destroyed it. I think -- and also it is pretty clear that he has sort of sublet important parts of Lebanon to Hezbollah and other terrorist organization, like Hamas and Islamic Jihad, and that needs to stop. There are a number of things that need to change in Syria, including their, I think, probably continued support for Iraqi Baathists and terrorism in Iraq against us.

BLITZER: How close do you believe the U.S. is to finding evidence there were, in fact, weapons of mass destruction in Iraq?

WOOLSEY: Well, some early reports this morning, which were the last ones that I saw today, indicated that we have in custody one of their senior scientists, who said that at least a number of weapons of mass destruction known to him that were in existence until a few days before the war were destroyed.

Now, that may or may not mean that the rest was destroyed, bacteriological weapons particularly can be kept in small vials and petri dishes. So it may be some time before we get this all sorted out, but that was at least a good lead to what may have happened to some of the weapons of mass destruction that were certainly in existence at the time all of this question about U.N. inspections was going on.

We weren't looking, really, Wolf, for big things like nuclear reactors. We had to be and the inspectors had to be looking for very small things that can be easily buried. And that's one reason there was such difficulty finding anything, unless people who knew about the program could be taken out of Iraq and questioned by the inspectors outside Iraq. And they never did that.

(END VIDEOTAPE)

BLITZER: Part two of my interview with James Woolsey tomorrow. We'll speak about what he calls World War IV, World War III being the Cold War. Now the U.S. is engaged in World War IV. He'll explain tomorrow.

In the meantime, hundreds of hours of unprecedented coverage. Embedded reporters brought us the war in Iraq like no other war before. We'll hear from CNN's Alessio Vinci, a witness to the harsh realities of combat.

Plus, hundreds of millions of dollars in cash discovered in Iraq. We'll hear from the two U.S. soldiers who found a fortune. They'll tell us the story. That's just ahead.

(COMMERCIAL BREAK)

BLITZER: The war in Iraq was undoubtedly the most widely covered conflict in history. For the first time, hundreds of reporters were embedded with U.S.-led forces, with many of CNN's own correspondents, of course, among them. Our Rome bureau chief Alessio Vinci was with the 1st Battalion of the 2nd Marines task force. Here is going to join us live in just a moment, but first, here is some of what he was able to share with us during the war.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (on camera): What I can report to you at this time is that a number of U.S. Marines at this time have entered the southern city of An Nasiriya, in the southwestern part of this country. Everything began early this morning, when the column of several thousand Marines advanced towards An Nasiriya and started encountering some resistance from Iraqi forces. Several hours after the Iraqi forces ambushed a U.S. military supply convoy, Iraqi forces continued to engage the U.S. military.

The U.S. commanders here are now telling us that they believe that almost all of the nine Marines killed in action, their bodies may have been recovered.

Are there any soldiers here?

UNIDENTIFIED MALE: No soldiers. All of them go to their home.

VINCI (voice-over): People here tell us they forced all the soldiers to leave town or to stay home. Alessio Vinci, CNN, with the U.S. Marines.

(END VIDEOTAPE)

BLITZER: And Alessio is joining us now live from Rome. Good to be back in Rome, I'm sure, Alessio, but was there a moment where you thought it might be all over for you and some of your -- some of the soldiers, the Marines you were covering at that moment?

VINCI: Well, never as close as believing it was all over, Wolf. Perhaps, you know, the single biggest battle that, you know, worst part of the war was, of course, the Marines trying to capture the city of An Nasiriya. And when we arrived there on that Sunday, March the 23rd, it was pretty violent. We saw the convoy of the U.S. military had been ambushed. It was quite clear from the very beginning that there was going to be a battle ahead, and it was quite violent for several hours. And it was really early during the war, and we had heard throughout the briefings before the war started that the south of the country was going to be friendly to U.S. forces, and indeed, once we got there, we saw a different story.

So we sort of -- we felt that at some point, the cameraman and myself said, well, you know, we're still at the beginning of the war, what will happen once we are going to go up north and meet the Republican Guard? So we were quite surprised to see the amount of resistance that the Iraqis had put up there down in the south in An Nasiriya.

BLITZER: How scared were you, Alessio?

VINCI: Say it again, Wolf?

BLITZER: How scared were you?

VINCI: To be honest with you, I was not as scared as I've been in other conflicts in the past, and namely both in the Balkans as well as in Afghanistan a couple of years ago. The reason is, I believe, is that I have not seen as much conflict in this war as I've seen in, say, in Mazar-e Sharif for three straight days. We had a pretty intense battle in An Nasiriya at the beginning of this war. But after that it was mainly about trying to protect ourselves for potential attack that never came compared to, for example, both in Kosovo or in Belgrade, during the bombing campaign where we were under NATO bombing for 70 days straight. It was much more scarier for me. We have seen a lot less battle in Iraq, at least our unit, than I've seen in the past.

BLITZER: There Alesso Vinci covered this war for us. Good to see you back in Rome. Get a glass of wine, some pasta. You look great now, even though it look like you lost a few pounds, I'm sure you're happy to be back in Rome. Alesso Vinci, did a great job for us, very courageous job like all of our embedded journalists. All of the embedded journalists, 600 or so who covered this war we tip our hats of, we salute them for the good work that all of them did. Of course we would love to hear from you as well.

Our web question of the day is this, "Should the military allow embedded journalist to report on future conflicts?" Please vote, right now, at cnn.com/wolf.

Two U.S. Army sergeants make an incredible find in the middle of a Baghdad neighborhood. We'll tell you what it was and how the soldiers handled it. That's just ahead. Please stay with us.

(COMMERCIAL BREAK)

BLITZER: Of all the interesting finds that U.S. Forces have made since entering Iraq, Friday's was among most surprising, a fortune in U.S. bills, a total of some $650 million.

A CNN crew in Baghdad caught up with the two U.S. soldiers who first stumbled on the cash.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Just kind of walked out into the open, seen some doors over on another building, went over to another building, searched that area.

BLITZER (voice-over): Meet two honest U.S. Army sergeants who for a fleeting few seconds stared fortune in the face.

UNIDENTIFIED MALE: Oh, my goodness. Didn't know what to think. Was overwhelmed with it.

BLITZER: Unfortunately for them it wasn't their fortune. Sergeants Kenneth Buff (ph) and Donald Van Ess were searching through abandoned estates in a wealthy Baghdad neighborhood. They were looking for saws to cut down branches that were blocking their humvees.

UNIDENTIFIED MALE: We noticed two buildings that were all blocked in with no windows or doors. So we decided to investigate. And what we found inside was boxes of money.

BLITZER: Make that several boxes with lots of money. The sergeants went from cottage to cottage, tore down windows and doors that had been walled off with cinder blocks and discovered dozens of boxes of crisp 100 dollar bills, U.S. currency, all told about $320 million worth. They insist they were not tempted. They simply started piling boxes into a truck and notified their commanders.

SGT. DANIEL VAN ESS, U.S. ARMY: No talking about putting it in the pocket.

BLITZER: The bills, eventually $650 million were found were apparently stashed by top Ba'ath party officials and Republican Guard commanders who were in a hurry to leave Baghdad shortly after the war erupted.

UNIDENTIFIED MALE: Maybe they didn't have room to take it with what they packed up.

BLITZER: As for these two sergeants, a valuable discovery did not distract them from their mission.

UNIDENTIFIED FEMALE: (UNINTELLIGIBLE)

UNIDENTIFIED MALE: Yes, we did.

UNIDENTIFIED FEMALE: You cut down the branches?

UNIDENTIFIED MALE: Yes, we did.

(END VIDEOTAPE)

BLITZER: We'll have the result of the web question of date immediately when we come back. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Look at results of our web question of the day. Seventy-eight percent of you think the U.S. military should allow embedded journalists to report on future conflicts, 22 percent say no.

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





Scott Peterson? A recap of Amazing Footage Taken From War in Iraq>


Aired April 21, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR: Happening now: Scott Peterson before a judge. Could he have killed his wife and his unborn son? What's the evidence? Do police have a motive?

Day one of a new era in Iraq, with a new man in charge.

RET. U.S. ARMY. LET. GEN. JAY GARNER, U.S.-APPOINTED HEAD OF INTERIM IRAQI GOVERNMENT: The new ruler of Iraq is going to be an Iraqi. I'm not -- I don't rule anything.

They're tasting freedom for the first time. But will they turn on those who gave it to them?

Who's next after Iraq? Should other leaders be nervous? The former CIA Director James Woolsey speaks out.

JAMES WOOLSEY, FMR. CIA DIRECTOR: I think the key thing is to keep the Syrians and Iranians from using terrorism.

BLITZER: One minute they're millionaires, the next -- we'll hear from U.S. soldiers who found a fortune.

UNIDENTIFIED MALE: I didn't know what to think (AUDIO GAP).

BLITZER: And a few weeks that changed history, and changed these reporters' lives.

WALTER RODGERS, CNN SR. INTERNATIONAL CORRESPONDENT: You've never seen battlefield pictures like these before.

BLITZER: Today, gripping accounts of danger on the front lines.

(END VIDEOTAPE)

BLITZER: It's Monday, April 21, 2003. I'm Wolf Blitzer reporting live from Washington. We're tracking several developing stories right now.

First, in California, Scott Peterson suspected of killing his wife and unborn son just went before a judge to answer the accusations. You're looking at new pictures just shown for the first time, within only the past few minutes as he walked into the courtroom. We'll go live to Modesto with new information on the case. Also, we're live in Baghdad where -- where another top man loyal to Saddam Hussein is captured.

And another dramatic arrest unfolded before our own cameras. Law and order returned to Baghdad -- look at this -- with a vengeance.

And making his first appearance in the Iraqi capital, retired U.S. Army Lieutenant General Jay Garner. He's the man who will oversee Iraq's new civil administration. Today, General Garner downplayed his power position.

And over at the Pentagon, the defense secretary, Donald Rumsfeld, downplayed America's role in Iraq for the future.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, DEFENSE SECRETARY: The impression that is left around the world is that we plan to occupy the country, we plan to use their bases over the long period of time and it's flat false.

(END VIDEO CLIP)

BLITZER: More on the new Iraq in just a moment.

But we begin with the latest twist in the Laci Peterson mystery. Only moments ago her husband appeared before a judge in Modesto, California. CNN's Rusty Dornin is outside the courthouse with all the late breaking developments -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Wolf, you could have heard a pin drop when Scott Peterson, shackled and handcuffed, walked into the courtroom, sporting a clean shaven face, his hair, however, is still blond, wearing, of course, the orange jump suit. Did not look at his family or anyone in the courtroom, sat down. The judge began reading the counts of double homicide against him. He replied in a very clear voice, "I am not guilty." He also denied the special allegations and enhancements on those double homicide charges.

Now, before the proceedings started, when Sharon Rocha, Laci's mother came into the courtroom, she walked in by herself. She sat down and there was a very emotional moment. Jackie Peterson, Scott Peterson's mother, got up, came over and hugged Sharon Rocha in her chair and said, I am sorry. We could not hear what Sharon Rocha said back. Jackie Peterson went back into her chair.

And as soon as Scott Peterson came into the courtroom, that's when Sharon Rocha just broke down in tears and, of course, was comforted by her husband, Ron Grantski.

Also the judge did ask Scott Peterson during the proceedings are you in a position to hire a lawyer. He said, "No, I am not," because there was a lot of indication that he was going hire Kirk McAllester (ph), who had been an attorney early on. He had the head of the public defender's office appointed to his case, Tim Bazar (ph). He will be the one handling the case.

Now May 6 there will be a bail hearing and May 19 there will be a pretrial hearing also here -- Wolf.

BLITZER: When you say, Rusty, that Jackie Peterson, Scott's mother, went over to the mother of Laci Peterson and said, "I am sorry," What was the context? Sorry that her -- her son got into this, sorry that Laci Peterson was dead? Was there a relationship between these two families over these many months since Christmas Eve?

DORNIN: Well, there was a relationship, of course, very close on. Jackie, the Peterson family, along with the Rochas used to come into the volunteer center quite often. I spoke to Jackie Peterson in the first month of the investigation, before they closed down the volunteer center. So they were very close family and it -- and even if the statements and the interviews that the Petersons have done, they've always indicated how horribly sorry and moved that they were by Laci's death, that they loved Laci very, very much. They are just upset because they are maintaining that their son is innocent in this case -- Wolf.

BLITZER: And they're not backing away from that. The words I am sorry from his mother doesn't seem to be suggesting that they're now convinced he did it.

DORNIN: No, they are not convinced he did it. They are -- they've been criticizing the Modesto police department all along, claiming that actually the Rochas have been brainwashed by the Modesto police and that their son was not involved in this.

BLITZER: All right, Rusty Dornin outside the courthouse. We're going to have much more coming up. Thanks, Rusty, very much.

All of this follows continued and adamant denials by Scott Peterson that he had anything to do with his wife's disappearance. Here's what he told a reporter from CNN affiliate KOVR back in January.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I know that law enforcement officials have told me that you won't take a lie detector test, that you've waivered back and forth on that. Why?

SCOTT PETERSON, LACI PETERSON'S HUSBAND: Well, let me say this about the investigation. I gave you two times earlier, 9:30 and 10:30, when the dog was returned here. Investigators on both sides, law enforcement and private asked me not to comment anymore about times, about conversations I had with the police, about the possible polygraph, you know, tests, if I've taken or if I've not. And there are, you know, things surrounding the investigation so that it can be clear. So I am simply not going to comment.

UNIDENTIFIED FEMALE: On why you're not going to take it?

S. PETERSON: I'm not going to comment if I have or have not taken a polygraph with the police.

UNIDENTIFIED FEMALE: The life insurance policy -- why take one out on Laci -- $250,00?

S. PETERSON: We have life insurance policies in place that were established when we bought this home that you're in right now, two years ago. There was no life insurance policy taken out recently, as has been reported in the "National Enquirer."

UNIDENTIFIED FEMALE (voice-over): After remaining silent for over a month, Scott says he decided to speak out because he felt the focus had shifted from Laci to him.

S. PETERSON: In hopes that people will go, You know what, if I think he had some involvement, if I don't think he had some involvement, that doesn't matter because Laci is what mattered and she's out there missing and she needs to be home with her families. So I don't care to defend myself. I don't care what people think of me.

(END VIDEOTAPE)

BLITZER: That was Scott Peterson speaking to our affiliate KOVR at the end of January.

Joining me now from New York to talk about this case against Scott Peterson are Lisa Bloom of Court TV and CNN's own legal analyst, Jeffrey Toobin.

Lisa, let me begin with you. Do we have any evidence on the public record yet implicating Scott Peterson?

LISA BLOOM, COURT TV: Well, I would say the best evidence, Wolf, is that he places himself at the crime scene by his own story that he went fishing 75 miles from his home on Christmas Eve. The bodies washed up within three miles of the location that he gave. I think that's significant.

Also, flight indicates consciousness of guilt legally. What was he doing with a changed appearance, $10,000 in cash on his way to the Mexican border when the bodies were found?

BLITZER: What about that, Jeffrey? Let's talk a little about the evidence. Apparently today in the court they did suggest that the murder was conducted not at the site where the -- the body floated up, but at the house in Modesto. That seems to suggest they might -- may have some harder evidence than was led -- that we were led to believe.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Remember, Wolf, they have conducted repeated searches of that house. They have not said what they discovered. In fact, the Modesto police has been very closed mouth about what evidence they have found here.

What they said in court today suggests that they have some proof that the murder took place at the -- at the house. But it is important to say in fairness to Scott Peterson that based on the public record, there are a lot of holes in this case. You know, what is the murder weapon, are there any eyewitnesses? Does -- does -- is there even a cause of death established for either of the victims. The answer to all those do not yet implicate Scott Peterson and you know, for someone calling this a slam dunk case, it really just doesn't look like a slam dunk case based on the evidence that's in the public record.

BLITZER: And presumably, Lisa, we won't know what that evidence is at least until around May 19 when that preliminary hearing takes place. Is that right?

BLOOM: Well, that's right. The press did report that certain cement containers were taken from Scott Peterson's home and the way these bodies were found indicates that the limbs may have been weighted down underwater, That's where they still may be.

But don't forget, Scott Peterson seems to be the only one to have had a motive to have committed the murders. The two oldest motives in the book, sex and money, a $250,00 life insurance policy and the fact that he started an affair a month before the death of this woman. Other than that, I'm not aware of anyone who would have a motive to commit this killing.

BLITZER: But that sounds, Jeffrey, very circumstantial. A lot of people have affairs and they don't wind up killing their spouse.

TOOBIN: That's right. I mean, there is no question that there is a lot of evidence of motive here. But in terms of actual physical testimonial evidence, tying -- tying Scott Peterson to the crime to the crime scene, to the bodies of his wife and infant or unborn son, it is simply not there yet, as far as we know. It's important to emphasize that the Modesto Police have not tried their case in public. There may be evidence that we don't know about, but in terms of what's out there, there is not a lot of evidence, except relating to motive and the discovery of the body.

BLITZER: We'll be patient and wait for that. One final question, Lisa, for you. The double homicide charge, an unborn baby, is that a definite as far as California law is concerned, that an 8- month-old fetus is definitely considered a human being?

BLOOM: Yes, it is very clear under California law, Wolf. That law enacted 30 years ago in response to a case very similar to this one, where an eight-month pregnant woman was murdered, and that case set the precedent that established that it is fetal homicide. It is murder in California to kill an unborn baby.

BLITZER: All right, May 6 the bail hearing, May 19 the preliminary hearing, presumably probable cause to show cause going forward. Lisa Bloom, Jeffrey Toobin, thanks to both of you for helping us better understand some of the legal intricacies of this case. The family, by the way, of Laci Peterson will be making a public statement. They're planning to do so in just a couple of hours. CNN will bring it you to you live. That's at 7:00 p.m. Eastern, 4:00 p.m. Pacific.

Let's turn now to the daunting task of creating a new Iraq. In Baghdad, there is a new man in charge today, at least for the time being. CNN's Nic Robertson reports from the Iraqi capital. (BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): On his first day in Baghdad, heading the U.S. reconstruction of Iraq, retired U.S. General Jay Garner seemed keen to play down local rumors he's come here to rule the country.

GARNER: I don't rule anything. I'm the coalition facilitator to establish a different environment where these people can pull things together themselves.

ROBERTSON: For now, pulling anything together here can be tough. Even lining up for fuel causes heated debate. Gassan (ph), the manager of the government-run filling station, weighs in to calm nerves shattered by war and looting. His message for Garner, relieve the pressure on his station. "Use the country's oil reserves," he says, "so that all the stations are operating. That will spread hope in the citizens' minds."

State fuel truck driver Jassim (ph) has a more personal call. "Honestly, our salaries are not enough. How can I live on less than $1 a day?"

Opinions at the pumps, however, on whether Garner can deliver, divided. "We don't accept him," says Khadim (ph). "We need an Iraqi. What can he understand about us?"

We don't know him," says Yacub (ph). "We'll see how he does, and then we'll have an idea."

A few miles away, at the state-run Al Dora oil refinery, Iraqi engineers have just restarted fuel production. Technicians tend government-owned equipment, much of which has seen only sporadic investment since U.S. companies first built the plant in 1952.

Keeping this cash-generating industry going, they say, will actually need little help from Garner.

HUSSEIN SULIMAN ALI, DORA OIL REFINERY: Inside the refinery, only to protect the refinery, not to help us with the operation.

ROBERTSON: At the gate, oil workers armed with Kalashnikovs keep guard where less than a week ago they fought off looters.

(on camera): Here at the Oil Ministry, one of the only Iraqi government buildings where U.S. troops prevented looters destroying the premises, Iraqi officials have already begun talks to choose a new oil minister.

(voice-over): Baghdad's self-appointed governor, Mohammed Zubaidi, who is yet to be recognized by Garner's office, plans sending his deputy as the top Iraqi representative to the OPEC meeting in Vienna this week.

For Garner, likely sorting the leadership post will prove the trickiest of his early tasks; restoring basic services, his most pressing. And reconstruction, the most enduring. No small feat for a man trying to keep a low profile.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: And if you're just joining us, another most wanted Iraqi is captured. Also, witness justice. Look at this, with a vengeance. CNN cameras roll as law and order returns to Baghdad. The dramatic arrest is coming up. Plus, live from the front lines, the reporters who risked everything to bring it to you as it happened. Walter Rodgers, Ryan Chilcote, Alessio Vinci, all will join us live to describe their most harrowing wartime experiences.

And multi-million-dollar find. U.S. soldiers stumble on a fortune in Iraq. Hear what they plan to do with the money. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. He was the queen of spades in that deck of cards, representing the most wanted leaders of the Iraqi regime. But Muhammad Hazmaq Al-Zubaydi is now in custody, according to the U.S. Central Command. At number 18 on the list, he's the most senior official arrested so far. Al-Zubaydi was the central Euphrates regional commander and a one-time deputy prime minister.

Police in Baghdad are eager to prove they can bring justice to the city, now scarred by looting and lawlessness. Today, they rounded up a group of would-be bank robbers as a crowd of Baghdad residents looked on. More now from CNN's Jim Clancy, who's joining us live from Baghdad -- Jim.

JIM CLANCY, CNN CORRESPONDENT: Well, Wolf, certainly the security situation here has improved dramatically. But I can tell you we just heard gunshots a few seconds ago out on the streets. Probably it was looters, trying to break into someone's home. We don't know for sure, but this repeats itself every day, every night.

We were driving through the city streets, in fact, just by the headquarters of the International Committee of the Red Cross today when we heard gunshots. We got out of the car, went to take a look and saw everybody hiding behind a wall, and we'll pick up the story from there.

(BEGIN VIDEOTAPE)

CLANCY (voice-over): Firing their newly issued AK-47s, Iraqi police moved in to thwart the broad daylight bank burglary in the center of the city. It was a vivid example of how officers have returned to the streets and confronted brazen looters.

With the chase on in earnest, squad cars and officers on foot chased after suspects desperately trying to flee the scene, dressed in athletic outfits. This man was caught and stuffed in the trunk of a police cruiser as he underwent what might be described as accelerated interrogation, Iraqi style. His pleas that he was also chasing the suspects obviously fell on deaf ears.

While it could be argued that Baghdad's finest were being a bit too eager to get back to business as usual, the public seemed fully supportive. They ignored repeated warnings to retreat to safety out of the line of fire. Apparently, no one wants to miss the latest episode of the return of justice to the streets of the city.

This eyewitness said the suspect fired at police, and he yelled a few choice words at him. "You're a thief, you're not a good citizen, you've sold yourself," he shouted.

Meantime back at the bank, U.S. troops aboard a Bradley fighting vehicle obliged the police, and pointed their cannon at the bank entrance while officers scoured the scene for our suspects. One other man was picked up nearby and held at the scene.

(END VIDEOTAPE)

Wolf, a note on Muhammed Hamzaq Zubaydi, the man who was picked up, No. 18 on the most wanted list. It is not because of what he knows, not because of some information he might have about weapons of mass destruction, it is most likely he earned that level on that most wanted list because he was involved in the killing of tens of thousands of Shia Muslims when they rebelled against the government in 1991. He was also involved in the repression of the (UNINTELLIGIBLE) Arab. So, a big figure certainly, one who could face a war crimes tribunal.

BLITZER: The queen of spades, No. 18 on most wanted list captured. Jim Clancy live with all the details for us from Baghdad tonight.

Thanks, Jim, very much.

Shiite Muslims filled the streets of Karbala in central Iraq earlier today. Some walked 50 miles to reach the tomb of a Muslim martyr who was killed more than 1,300 years ago. The pilgrimage which involves the city of Najaf was banned during the decades when Saddam Hussein ruled over Iraq. Many of the marchers are calling for the establishment of an Islamic state.

They risk their lives to cover the war. But what was going on when the cameras turned off?

Walter Rogers and Ryan Chilcote will join us live immediately when we return.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I can't here what you said, but you can hear for yourselves, more live firing here at Umm Qasr.

(END VIDEO CLIP) BLITZER: Many said it has been a war covered like no other. Reporter on the air live brought it to audiences around the world in real time. Something journalism schools may be discussing for years to come.

CNN's Walter Rodgers was one of those reporters covering American troops leading that charge to Baghdad. The 3rd Squadron of the army's 7th Cavalry. He'll join us live in a moment.

But here say quick look at some of the defining moments for Walter Rodgers.

(BEGIN VIDEOTAPE)

RODGERS: The pictures you're seeing are absolutely phenomenal. These are live pictures of the 7th Cavalry racing across the desert. You've never seen battlefield pictures like these before. What you're watching here is truly historic television and journalism.

This is a live, as it happens, real time war. Again, a few seconds ago the Iraqis fired another rocket-propelled grenade over our heads.

It was the army which assigned me to the 3rd Squadron 7th Cavalry, and that was extremely fortuitous. It was like sitting in a poker game and drawing four aces.

We're hearing incoming. We're not sure what it is. Good-bye, we've got to dive for vehicles, we think. See you. Bye.

This giant wave of steel that grows every hour is ever pushing northward, ever pushing toward the Iraqi capital.

This Iraqi soldier that you're looking at has been lying between these two metal bars for more than a few hours now, increasingly as he was given water and after the IV went in his arm, it was as if he suddenly realized he wasn't going to die in a dirty ditch. And in point of fact, began smiling and trying as best he could to thank the CNN crew as well as the army medics who came along and treated his wounds until he could be evacuated.

(END VIDEOTAPE)

BLITZER: Joining us now is Walter Rodgers. Walter, great job.

How did this war change you, if it did change you?

RODGERS: Well, you know, revisiting those tapes, Wolf, as I watched them and listened to them now, I realize I deliberately understated the degree of danger we were in so as not to hype and not to exaggerate the situation. It was -- there were some really dodgy times there -- Wolf.

BLITZER: Many of your colleagues, young war correspondents, some veterans who have been through these kind of situations say what they saw up close and personal made them sick. They're having nightmares. They had to walk away from it.

Did you have that kind of an experience?

RODGERS: No, but then again this was not my first war. I can say that last night was the first night since I got out that I did not dream about the army and being in the desert. But no, it didn't make me sick and it is not first time I've seen this. And I think it is very important when journalism schools discuss this that they realize the import of sending seasoned, experienced reporters to out to cover war -- Wolf.

BLITZER: Was there a defining moment for you that seemed to crystallize the events in your mind?

RODGERS: No, I don't think so. There were times, for example, when you would go into combat two to three days consecutively, and realize -- and want to say, OK, Atlanta, I've done my bid, I earned it again and the army would say no, we have another week or two weeks of fighting. That was the most amusing thing about it for me this was not just an in-and-out situation, you were in for a penny, in for a pound, in for the duration -- Wolf.

BLITZER: You look great in those desert fatigues. You look much dapper now in London. Walter Rodgers, I'm sure your family, everybody is happy you're back safe and sound. We're especially happy. Thanks for the great work.

Let's move on now.

CNN's Ryan Chilcote was embedded with the 101st Airborne Division. Moving with that unit all the way from Kuwait to Baghdad. He'll join us live in just a moment. His reports, of course, gave our viewers a firsthand look at some of the obstacles that troops face including violent weather.

(BEGIN VIDEO CLIP)

RYAN CHILCOTE, CNN CORRESPONDENT: The entire fleet of the 101st Airborne has been grounded. So in terms of -- I mean, this is an air assault division. They specialize in moving troops to the battlefield with their helicopters. So, they obviously can't do that right now. In addition to that, a lot of -- when this kicked up, this sandstorm began, I don't know if you're getting an idea of it, it is snowing sand now. When this began it came up so quickly, and violently that a lot of the pilots out there, they had to put their helicopters down on the ground right away, wherever they were.

Military convoy was moving through city today, actually trying to make its way to the mosques to establish contact with the cleric of the Ali Mosque here in the city of al Najaf when for various reasons had it had to stop. And people around the convoy, this is primarily a Shia Muslim city, really just started chanting pro American and anti- Saddam slogans. Obviously, there is very little love lost for president Saddam Hussein here in southern Iraq.

(END VIDEO CLIP) BLITZER: And joining us now live is Ryan Chilcote. Let me ask you the same question asked Walter. A defining moment for you during the weeks of war coverage?

CHILCOTE: Well, sure, Wolf. Difficult to single out one moment. There was a time just about a week ago when the troops were out on a patrol in southern Baghdad, it was supposed to be an uneventful patrol, they've been told about a weapons cache inside of a residential building. They went inside the build and found 13 surface-to-air missiles. Almost uneventful considering the number of weapons that they were finding inside of those residences, inside of buildings in Baghdad.

We came out of the building and there was a soldier sitting on a tank and there was a crowd of boys standing around him and he had a trial-sized bottle of Tabasco sauce and he was giving the kids a taste of Tabasco and all the kids were tasting and going, ooh.

And right nearby there was this beautiful girl wearing a dress. She couldn't have been older than 5-years-old. And she had a tray and on it she had at tea cups and she was serving the soldiers hot tea. That's a juxtaposition in moments that I don't think I'll ever forget.

BLITZER: Did you ever think your life was in danger, Ryan?

CHILCOTE: Yes, there were a couple of times when I was nervous. It was mainly because I felt vulnerable.

Actually the funny thing is during the fire fights, I felt the least nervous because I sort of knew what I was getting into, it was pretty clear. There was one time when I was on top of a hill just north of Hala, we were doing a live shot, waiting to do a live shot, actually. It got dark and we decided we felt pretty safe, we decided turned on the white lights to light me up so you can see me.

So I was looking out over the ruins of ancient Babylon, actually. And in front of me all I could see was darkness, just black. And obviously anyone else could see, if they were down below, was the white that was lighting me up. And that was, of course, what tipped off one man with a mortar to send in a mortar round.

That scared me pretty well. We came scurrying down the building. And the next fear, of course, because we hadn't been with troops at the time, was that we wanted to approach U.S. troops but they didn't know we were coming. So even more than the mortar fire scared me, I was scared of getting shot by U.S. troops who didn't know who was approaching them.

BLITZER: Friendly fire, as they say. Ryan Chilcote. I'm sure our viewers are thrilled to see you all cleaned up, shaven, no more sand, more dirt all over your face. You look great. Thanks for the good work, as well. Always appreciated your live coverage from the 101st Airborne Division. CNN's Ryan Chilcote.

We're going to have more on these embedded journalists, what they saw, what they couldn't tell us during the course of the war. We also, of course, would love to hear from you. "Our Web Question of the Day" is this, should the military allow embedded journalists to report on future conflicts. Please vote at cnn.com/wolf. We'll have the results at the end of this program.

We have much more coverage coming up. First, let's get the latest headlines. For that, to Anderson Cooper in the CNN Newsroom in Atlanta -- Anderson.

(NEWSBREAK)

BLITZER: Where's Saddam Hussein and what about his chemical and biological weapons? I'll speak with the former head of the CIA, ask him about the key reasons President Bush went to war and what happens next.

Plus, Middle East despots on notice. Will the war in Iraq have a ripple effect in the region? We'll take a closer look.

And multimillion dollar jackpot. Not the Lotto, but in Iraq. Hear what these soldiers plan to do with the money. Millions, millions of dollars they found stashed away. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. As the fall of the Iraqi regime just the beginning. Are sweeping changes in store for the Middle East? Let's go live to the White House our senior White House correspondent John King is standing by -- John.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Wolf, the president certainly thinks so. On one hand he says the war continues. His top man in Baghdad says the priority is restoring water and electricity.

But if you listen closely to the president these days, he makes clear he believes the fall of Saddam Hussein will have dramatic political impact across the entire region.

(BEGIN VIDEOTAPE)

KING (voice-over): Iraq's post-war political direction is anything but clear. Yet already there is a ripple effect across the region.

MARTIN INDYK, BROOKING INSTITUTION: The people see what's happening and say why can't we have this for ourselves, too? Why can't we have democracy? Why can't we have free demonstrations?

KING: Religious, ethic and other rivalries make shaping post-war Iraq a daunting challenge. But the president talks optimistically of a model democracy.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We believe that people across the Middle East and across the world are weary of poverty, weary of oppression and yearn to be free. KING: It is a message aimed squarely at Syria and Iran, two of Iraq's neighbors on less than friendly terms with Washington. But Mr. Bush's words are not going unnoticed in more friendly Arab capitals like Riyadh and Cairo.

HISHAM MELHAM, "AS-SAFIR": Neighboring states are not going to look kindly at the possibility of the flourishing of politics in Iraq or the empowerment of the Iraqi people because they did not allow -- they are not going to empower their own people in any serious way.

KING: There are cautious democratic reforms under way in the region. Bahrain last year re-established its parliament, and women were among the voters and the candidates.

Morocco's King Mohammed won international praise for last year's national assembly elections. And Jordan's King Abdullah is taking modest steps toward economic and political reforms.

But Mr. Bush's talk of more dramatic reforms is viewed suspiciously by those in the region already worried about too much U.S. influence over the new Iraq.

MELHAM: The United States would be in a position to neutralize Syria, isolate Iran, marginalize Saudi Arabia, determine oil policy, determine the outcome of any Arab-Israeli negotiations. So this is how many governments see the American project (UNINTELLIGIBLE).

KING: And even many who applaud the president's focus suggest a go slow approach in Iraq and across the region.

MELHAM: We have to be always conscious that this process can be hijacked by people who are not democrats, who are extremists in religious garb who have a different definition of democracy which is one vote, one time until they gain power.

KING: The dramatic events in Iraq are being covered extensively by Arab media outlets. And the White House believes images like these will leave other governments in the region no choice but to give their own citizens more of a voice.

(END VIDEOTAPE)

KING: And the Bush White House is well aware on the Arab street the next big test of U.S. motives in the region is how this president deals with the Arab-Israeli conflict. They say here at the White House that the road map for peace between Israel and the Palestinians is ready, but held up because of an ongoing dispute between Yasser Arafat and his choice to be the new Palestinian prime minister -- Wolf.

BLITZER: John King at the White House. Thanks, John, very much.

And while the war in Iraq may indeed have far ranging effects, can the U.S. actually declare victory if it doesn't find Saddam Hussein? Earlier I put that question to the former CIA Director James Woolsey. He joined me from San Antonio, Texas. (BEGIN VIDEOTAPE)

JAMES WOOLSEY, FORMER CIA DIRECTOR: Oh, I think it can be, certainly. He may be buried under tons of rubble somewhere, but I think probably eventually we will find either his remains or him. But we can proceed effectively, I think, anyway, although it would sure be nice to get him.

BLITZER: Because as you know, a lot of Iraqis are after decades of his rule are still worried he might still show up. So they want hard evidence that he's gone one way or another.

WOOLSEY: Well, that's very understandable. I think the key thing is to keep the Syrians and Iranians from using terrorism and support for the remaining pockets of Baathists in Iraq and the like to disrupt Iraq and turn it into something like Lebanon in the early '80s. Bashar Assad already said in late March that's what he wanted to do, and I think the Iranian government, the mullahs, are not being quite so candid, but I think that's what they want to do.

I think that is what will frighten the Iraqi people the most, and if we can keep that from happening, we can deal with some period of time when we don't know exactly where Saddam or his remains are.

BLITZER: Well, let's talk about both of those contingencies. Briefly, do you believe the Iranians are meddling now in Iraqi affairs?

WOOLSEY: I think the Iranian mullahs are. They have a serious problem that they are very unpopular with their own people, with the young people, teenagers and younger half of Iran, with the women, with the reformers, and increasingly they're unpopular with their own grand ayatollahs, like the conservative Ayatollah Tahari (ph), who lit into them last summer. So they badly need to undermine democracy in Iraq, and they talk out of both sides of their mouths. But I think the mullahs, the people like Khameini and those who follow him are very much trying to undermine democracy in Iraq.

BLITZER: Do you think Bashar Al-Assad is beginning to get the message that he's in deep trouble unless he stops supporting groups the State Department brands as terrorists, like Hezbollah?

WOOLSEY: He's beginning to say that he's getting the message, but that may be a different thing in his case than his actually getting the message. I think when we're in the position we're in here, we need to push him pretty hard to do a number of things he needs to do. He needs to get out of Lebanon, for example. Lebanon was the Arab world's one successful democracy. And Syria in effect and the PLO in the '80s destroyed it. I think -- and also it is pretty clear that he has sort of sublet important parts of Lebanon to Hezbollah and other terrorist organization, like Hamas and Islamic Jihad, and that needs to stop. There are a number of things that need to change in Syria, including their, I think, probably continued support for Iraqi Baathists and terrorism in Iraq against us.

BLITZER: How close do you believe the U.S. is to finding evidence there were, in fact, weapons of mass destruction in Iraq?

WOOLSEY: Well, some early reports this morning, which were the last ones that I saw today, indicated that we have in custody one of their senior scientists, who said that at least a number of weapons of mass destruction known to him that were in existence until a few days before the war were destroyed.

Now, that may or may not mean that the rest was destroyed, bacteriological weapons particularly can be kept in small vials and petri dishes. So it may be some time before we get this all sorted out, but that was at least a good lead to what may have happened to some of the weapons of mass destruction that were certainly in existence at the time all of this question about U.N. inspections was going on.

We weren't looking, really, Wolf, for big things like nuclear reactors. We had to be and the inspectors had to be looking for very small things that can be easily buried. And that's one reason there was such difficulty finding anything, unless people who knew about the program could be taken out of Iraq and questioned by the inspectors outside Iraq. And they never did that.

(END VIDEOTAPE)

BLITZER: Part two of my interview with James Woolsey tomorrow. We'll speak about what he calls World War IV, World War III being the Cold War. Now the U.S. is engaged in World War IV. He'll explain tomorrow.

In the meantime, hundreds of hours of unprecedented coverage. Embedded reporters brought us the war in Iraq like no other war before. We'll hear from CNN's Alessio Vinci, a witness to the harsh realities of combat.

Plus, hundreds of millions of dollars in cash discovered in Iraq. We'll hear from the two U.S. soldiers who found a fortune. They'll tell us the story. That's just ahead.

(COMMERCIAL BREAK)

BLITZER: The war in Iraq was undoubtedly the most widely covered conflict in history. For the first time, hundreds of reporters were embedded with U.S.-led forces, with many of CNN's own correspondents, of course, among them. Our Rome bureau chief Alessio Vinci was with the 1st Battalion of the 2nd Marines task force. Here is going to join us live in just a moment, but first, here is some of what he was able to share with us during the war.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (on camera): What I can report to you at this time is that a number of U.S. Marines at this time have entered the southern city of An Nasiriya, in the southwestern part of this country. Everything began early this morning, when the column of several thousand Marines advanced towards An Nasiriya and started encountering some resistance from Iraqi forces. Several hours after the Iraqi forces ambushed a U.S. military supply convoy, Iraqi forces continued to engage the U.S. military.

The U.S. commanders here are now telling us that they believe that almost all of the nine Marines killed in action, their bodies may have been recovered.

Are there any soldiers here?

UNIDENTIFIED MALE: No soldiers. All of them go to their home.

VINCI (voice-over): People here tell us they forced all the soldiers to leave town or to stay home. Alessio Vinci, CNN, with the U.S. Marines.

(END VIDEOTAPE)

BLITZER: And Alessio is joining us now live from Rome. Good to be back in Rome, I'm sure, Alessio, but was there a moment where you thought it might be all over for you and some of your -- some of the soldiers, the Marines you were covering at that moment?

VINCI: Well, never as close as believing it was all over, Wolf. Perhaps, you know, the single biggest battle that, you know, worst part of the war was, of course, the Marines trying to capture the city of An Nasiriya. And when we arrived there on that Sunday, March the 23rd, it was pretty violent. We saw the convoy of the U.S. military had been ambushed. It was quite clear from the very beginning that there was going to be a battle ahead, and it was quite violent for several hours. And it was really early during the war, and we had heard throughout the briefings before the war started that the south of the country was going to be friendly to U.S. forces, and indeed, once we got there, we saw a different story.

So we sort of -- we felt that at some point, the cameraman and myself said, well, you know, we're still at the beginning of the war, what will happen once we are going to go up north and meet the Republican Guard? So we were quite surprised to see the amount of resistance that the Iraqis had put up there down in the south in An Nasiriya.

BLITZER: How scared were you, Alessio?

VINCI: Say it again, Wolf?

BLITZER: How scared were you?

VINCI: To be honest with you, I was not as scared as I've been in other conflicts in the past, and namely both in the Balkans as well as in Afghanistan a couple of years ago. The reason is, I believe, is that I have not seen as much conflict in this war as I've seen in, say, in Mazar-e Sharif for three straight days. We had a pretty intense battle in An Nasiriya at the beginning of this war. But after that it was mainly about trying to protect ourselves for potential attack that never came compared to, for example, both in Kosovo or in Belgrade, during the bombing campaign where we were under NATO bombing for 70 days straight. It was much more scarier for me. We have seen a lot less battle in Iraq, at least our unit, than I've seen in the past.

BLITZER: There Alesso Vinci covered this war for us. Good to see you back in Rome. Get a glass of wine, some pasta. You look great now, even though it look like you lost a few pounds, I'm sure you're happy to be back in Rome. Alesso Vinci, did a great job for us, very courageous job like all of our embedded journalists. All of the embedded journalists, 600 or so who covered this war we tip our hats of, we salute them for the good work that all of them did. Of course we would love to hear from you as well.

Our web question of the day is this, "Should the military allow embedded journalist to report on future conflicts?" Please vote, right now, at cnn.com/wolf.

Two U.S. Army sergeants make an incredible find in the middle of a Baghdad neighborhood. We'll tell you what it was and how the soldiers handled it. That's just ahead. Please stay with us.

(COMMERCIAL BREAK)

BLITZER: Of all the interesting finds that U.S. Forces have made since entering Iraq, Friday's was among most surprising, a fortune in U.S. bills, a total of some $650 million.

A CNN crew in Baghdad caught up with the two U.S. soldiers who first stumbled on the cash.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Just kind of walked out into the open, seen some doors over on another building, went over to another building, searched that area.

BLITZER (voice-over): Meet two honest U.S. Army sergeants who for a fleeting few seconds stared fortune in the face.

UNIDENTIFIED MALE: Oh, my goodness. Didn't know what to think. Was overwhelmed with it.

BLITZER: Unfortunately for them it wasn't their fortune. Sergeants Kenneth Buff (ph) and Donald Van Ess were searching through abandoned estates in a wealthy Baghdad neighborhood. They were looking for saws to cut down branches that were blocking their humvees.

UNIDENTIFIED MALE: We noticed two buildings that were all blocked in with no windows or doors. So we decided to investigate. And what we found inside was boxes of money.

BLITZER: Make that several boxes with lots of money. The sergeants went from cottage to cottage, tore down windows and doors that had been walled off with cinder blocks and discovered dozens of boxes of crisp 100 dollar bills, U.S. currency, all told about $320 million worth. They insist they were not tempted. They simply started piling boxes into a truck and notified their commanders.

SGT. DANIEL VAN ESS, U.S. ARMY: No talking about putting it in the pocket.

BLITZER: The bills, eventually $650 million were found were apparently stashed by top Ba'ath party officials and Republican Guard commanders who were in a hurry to leave Baghdad shortly after the war erupted.

UNIDENTIFIED MALE: Maybe they didn't have room to take it with what they packed up.

BLITZER: As for these two sergeants, a valuable discovery did not distract them from their mission.

UNIDENTIFIED FEMALE: (UNINTELLIGIBLE)

UNIDENTIFIED MALE: Yes, we did.

UNIDENTIFIED FEMALE: You cut down the branches?

UNIDENTIFIED MALE: Yes, we did.

(END VIDEOTAPE)

BLITZER: We'll have the result of the web question of date immediately when we come back. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Look at results of our web question of the day. Seventy-eight percent of you think the U.S. military should allow embedded journalists to report on future conflicts, 22 percent say no.

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





Scott Peterson? A recap of Amazing Footage Taken From War in Iraq>