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CNN Wolf Blitzer Reports

Candidates Go For The Wallet; Interview With P. Diddy

Aired March 26, 2004 - 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)
MILES O'BRIEN, CNN ANCHOR (voice-over): Your pocketbook at stake as they square-off over the economy.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The unemployment rate today is lower than the average rate in the 1970s, 1980s and 1990s.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: And my plan is for 10 million new jobs in the next four years.

O'BRIEN: Terror threats. An ally stands up to al Qaeda.

SHEIKH RASHID AHMEN, PAKISTANI INFORMATION MIN.: ... that we finish all these terrorists, wherever they are.

O'BRIEN: Hit and run. Convicted of a felony. Will a retired bishop spend time behind bars?

Music mogul.

SEAN "P. DIDDY" COMBS, ENTERTAINER: The money and the power and the sales aren't going to get me into Heaven at the end of the day.

O'BRIEN: Wolf raps with Sean "P. Diddy" Combs.

ANNOUNCER: This WOLF BLITZER REPORTS for Friday, March 26, 2004.

(END VIDEOTAPE)

O'BRIEN: Hello. I'm Miles O'Brien. Wolf is off today.

We begin with a sharp new escalation in the war of words over events leading up to 9/11. The White House has been hammering its former counterterrorist chief Richard Clarke who's alleged that the Bush administration mishandled the terror threat.

And now members of Congress are upping the ante, pushing to declassify some formerly secret testimony. Let's go live to our congressional correspondent Joe Johns. Joe, what's the latest?

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: First, certainly, is the No. 1 Republican who has actually called for an investigation, Miles. He is essentially questioning whether Clarke lied. He says a number of things have happened here, including the fact that apparently, Clark praised the administration in conversations with reporter in August of 2002, Clarke apparently praised the administration in intelligence committee hearings around July 2002. But now is sharply critical of the administration, in a hot selling new book.

He wants that closed testimony in July of 2002, declassified so Congress can judge for itself whether Clarke lied.

(BEGIN VIDEO CLIP)

SEN. BILL FRIST (R-TN), MAJORITY LEADER: It is one thing for Mr. Clarke to dissemble in front of the media, in front of the press. But if he lied under oath to the United States Congress, it's a far, far more serious matter.

(END VIDEO CLIP)

JOHNS: Democratic Senator Bob Graham of Florida was there during all that. That he was co-chair of the Intelligence Committee during that time. He says he sees nothing wrong with declassifying all the information, and he sees no contradictions between what Clarke was saying then and what he's saying now.

(BEGIN VIDEO CLIP)

SEN. BOB GRAHAM (D), FLORIDA: Absolutely. And I think there should be even more declassification.

First, the president should declassify all of Mr. Clarke's statement, not as he has done previously, cherry pick just those parts that make the president's case.

(END VIDEO CLIP)

JOHNS: Clarke, for his part, has been asked on the record as to whether he lied, and if so, why? Clarke said he did not lie, that simply, he was asked by the administration to put best foot forward.

Obviously, all of this has become a political football. Senator John Kerry, the Democratic presidential candidate, saying my challenge to the Bush administration would be if he's not believable and they have reason to show it then prosecute him for perjury, because he is under oath, they have a perfect right to do that. So on it goes -- Miles.

O'BRIEN: Joe Johns on Capitol Hill watching the political football game. Appreciate it.

National Security Adviser Condoleezza Rice may be headed for another session with the September 11 Commission. The White House says it is willing to make Rice available for a second appearance before the panel. But it says the second appearance, like the first, must be behind closed doors. Here is your turn to weigh in on this important story. Our "Web Question of the Day" is this: if Condoleezza Rice meets privately again with the 9/11 panel, it could close the book on the commission's questions? You can vote right now at cnn.com/wolf. We'll have the results little later in this broadcast.

Democratic presidential candidate John Kerry came out swinging on the economy today. CNN's Sean Callebs standing by with more on that. Hello, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Hello, Sean. hello, Miles. Indeed, you are exactly right. John Kerry making it clear, he plans on making the economy and the flow of the U.S. jobs overseas among the cornerstones of his campaign.

(BEGIN VIDEOTAPE)

CALLEBS (voice-over): The economy will be booming in a Kerry administration, so predicted a presumptive Democratic nominee.

KERRY: I will focus on raising American competitiveness by spurring the growth new industries like the broadband technology that will dominate future, by lowering health care costs that put American businesses at a competitive and priced disadvantage, by lowering energy costs which burdens businesses and consumers and by creating half a million new jobs in renewable fuels to make America energy independent of Mideast oil in ten years.

CALLEBS: Among the initiatives unveiled today, reforming the corporate tax code, improving job training and skills for American workers and restoring U.S. fiscal discipline.

Taking a pages Bill Clinton's "It's the economy, stupid" campaign, which unseeded the president's father in 1992, Kerry hammered the president.

KERRY: This president doesn't have a record it run on, but a record to run from. And that's what he's doing.

CALLEBS: At pains to present himself as a pro-business candidate, Kerry announced a carrot and stick approach it corporate America, calling for an end to corporate tax breaks on overseas income, lowering the tax rate to 33.25 percent from 35 percent and encouraging firms to shift investments to the U.S.

(END VIDEOTAPE)

CALLEBS: It's no accident that Kerry chose Michigan, the labor intensive state, to make his pitch. It is considered one of the key battlegrounds in the upcoming presidential election. In 2000 Al Gore carried Michigan, scrapping by, Miles, with 51 percent of the vote.

O'BRIEN: Sean Callebs in our Washington newsroom, thank you very much.

President Bush tried to shift the spotlight on the economy campaigning in the Southwest today. He talked about expanding home ownership. President is in Phoenix at this hour. CNN White House correspondent Dana Bash is standing by from there. Hello, Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Hi, Miles. And while John Kerry was in Michigan talking about his new plan for outsourcing and also as you heard hitting the president on more than 2 million jobs lost on his watch, the president came here to two Southwest states, first to New Mexico, now in Arizona to say essentially, it's about more than jobs.

As the incumbent, of course, this is for better or worse, the Bush economy. And the president is trying to put the focus on what he says are the positive aspects of it. That's exactly what he tried to do today.

(BEGIN VIDEO CLIP)

BUSH: We're the fastest-growing, major industrialized nation in the world. Unemployment rate in Arizona has gone from 5.9 percent last year to 5.2 percent this year. Inflation is low. Interest rates are low. Manufacturing activity is up.

Now, this economy has gone through a lot. And you know why? Because the American workers and the American people, and the American entrepreneurs are strong, steady and resolute.

(END VIDEO CLIP)

BASH: Now, home ownership and the rise in home ownership was the theme of the day. And the president talking about the fact that 68 percent of Americans own their own home. That's the highest nationwide in American history, he said.

But when he sat down with some folks here at a carpenter's training center, the head of the carpenter's union sat down to talk about home ownership and building homes. He took the opportunity to say, Mr. President, this is the most important thing to me and to us is jobs, which, of course, forced the president to say that jobs are also important to him, creating jobs.

So it goes to show you, Miles, in a situation where the president is trying to change the, is it's hard to do sometimes -- Miles.

O'BRIEN: All right, Dana. Quick question for you, any response to the Kerry economic plan that was floated today?

BASH: The president didn't say a word about it. But his campaign was really out in force talking about the fact that they do not think it's what it's all cracked up to be.

They made a couple points. First of all, they say it would not prevent outsourcing. They say that there are other things beside tax incentives that forces jobs overseas.

Also they say that it would create a complicated accounting for companies. Essentially saying this would be a boondoggle for accountants and make it a nightmare for these big companies. And also they said that it would not help small businesses.

And of course, pointing to another part of the Kerry tax plan which is to cut the president's highest bracket in tax cuts. They say that would hurt small businesses and again they say that would hurt jobs -- Miles.

O'BRIEN: Dana Bash, thank you very much. You can hear from presidential candidate John Kerry at length with "LOU DOBBS TONIGHT" right after this program, 6:00 p.m. Eastern, 3:00 p.m. Pacific.

Standing firm in the wake of new threats from al Qaeda. Pakistan's government confirming its commitment to the war on terror, but will the pressure be too much?

Probation or prison? A Catholic bishop convicted of a fatal hit and run accident received his punishment a few moments ago.

Plus this...

(BEGIN VIDEO CLIP)

WOLF BLITZER, CNN ANCHOR: How much are you worth?

COMBS: Millions. I'm worth a lot.

(END VIDEO CLIP)

O'BRIEN: From intern to icon and still moving on up. How Sean "P. Diddy" Combs could influence the upcoming election. Wolf Blitzer, one on one with the music industry phenomenon.

But first, today's "News Quiz."

(BEGIN VIDEO CLIP)

O'BRIEN (voice-over): Which artist or group received the first ever Grammy Award in the rap music genre? MC Hammer, DJ Jazzy Jeff and the Fresh Prince, Coolio or the Beastie Boys? The answer is coming up?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

O'BRIEN: A retired Catholic bishop is sentenced.

Plus trouble in the Tyco trial. Heated exchanges inside the jury room for deliberations, and ultimately a decision in doubt. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back. He's believed to be the first Roman Catholic bishop in the U.S. history to be convicted of a felony. And just a short while ago Thomas O'Brien found out his punishment for a deadly hit and run accident in February. CNN national correspondent Frank Buckley joining us from Phoenix with details of all of this. We saw it unfold a new moments ago -- Frank.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Miles, the decision coming from Judge Stephen Gerst after more than an hour of explanation as to how he arrived at his decision.

The decision is that Bishop Thomas O'Brien will get four years of probation, that's the maximum period of probation allowable in a Class IV felony conviction. As part of that too, conduct 1,000 hours of community service in which he will counsel severely injured or dying members of this community. His driver's license will be suspended for five years.

And he has a six-month long deferred jail sentence. That doesn't mean that the bishop will be going to jail. But, in fact, what it means is as long as Bishop O'Brien conducts the probation as required, it's believed that the deferred jail sentence will be removed. If for some reason the probation isn't satisfied, that's when this (UNINTELLIGIBLE) deferred jail sentence would take place.

As I said, Miles, Judge Stephen Gerst going to great lengths to explain how he arrived at his decision. He told the people in the courtroom, he looked at all 99 cases going back to 1996 of a similar nature, reviewed all the factors that went into each and every one of those cases. And that's how he arrive at his decision -- Miles.

O'BRIEN: Frank, question for you. Did the judge factor in at all the church sex scandal, which, of course, Thomas O'Brien was a part of, ultimately cutting a deal where he resigned over this past summer did. That factor in at all?

BUCKLEY: He did say that was one of the many factors he looked at. But he didn't give that any more weight than the other factors and he didn't ascribe any negative aspects to that particular factor. He said that he did look at that, but he also looked at all the positive things that were included in the package from letters to testimony. And to the nature of the crime, and what happened, what he was convicted of. He looked at everything in totality -- Miles.

O'BRIEN: Frank, the maximum here was upwards of four years in jail with $150,000 fine. Would you call this a light sentence or middle of the road sentence?

BUCKLEY: Certainly, it's light in terms of the possible range that he could have faced. He could have faced prison time, he could have faced jail time in county jail. But the judge went for probation.

What the judge was trying to carefully do is show in the case of all of these 99 cases going back to 1996, that's all of the cases in the Phoenix area during this time period. All of the cases that had similar factors like the factors that were involved in Bishop O'Brien's case, you had no one going to prison for four years, no one getting jail time. In the one particular case that was most on point, it was the same soft of thing, six months, deferred jail, plus probation.

O'BRIEN: CNN's Frank Buckley in Phoenix, thanks very much.

Other news for you now. A CIA spokesman says the voice on the al Qaeda audiotape is indeed likely of that Ayman al-Zawahiri. In his recorded rant Osama bin Laden's No. 2 man threatened a key ally in the war on terror. But so far Pakistan is standing firm. CNN senior international correspondent Nic Robertson reports from Islamabad.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): Anger for Pakistan's government sparking this demonstration.

Although protests following Friday prayers are not unusual, emotion this day fueled by the government's hard-hand hunt for al Qaeda in remote tribal lands.

Into this potentially volatile mix, Ayman al-Zawahiri, the man Pakistani officials thought a week ago they might have cornered on their border, is now believed to be on an audiotape calling for the overthrow of Pakistani President Pervez Musharraf.

AYMAN AL-ZAWAHIRI (through translator): The United States has told Musharraf to seek revenge from the border tribes, especially the honorable Pashtun tribes. That is to defeat the grassroot efforts to Jihad against its crusader movement. So he began by destroying houses, jailing many and killing people in markets.

ROBERTSON: Not clear if he's referring to the current military operation in Waziristan. Officials, though, readily dismissing the message.

AHMEN: We condemn this statement, and we stand for our commitment against the terrorism, and we are going to finish all these terrorists.

ROBERTSON: In the Waziristan offensive, though, that has meant bowing to tribal pressure, and back off on artillery and helicopter offensives in favor of deadlocked negotiations.

Adding to government frustrations, the discovery of tunnels indicating high-value targets authorities thought they had cornered may well have escaped, raising the question of Pakistan's ability to round up terror suspects.

FAISAL SALAH HAYAT, PAKISTANI INTERIOR MIN.: (UNINTELLIGIBLE) only then we shall say with great authority and finality as to who exactly have in there.

ROBERTSON (on camera): As the United States is relying heavily on Pakistan to police up al Qaeda on their side of the Afghan/Pakistan border, failures here will likely be cause for concern in Washington. But what Pakistani officials want President Bush and his administration to understand is the pressures they are up against here.

Nic Robertson, CNN, Islamabad, Pakistan.

(END VIDEOTAPE)

O'BRIEN: Arguments in the jury room and a verdict in doubt. Why the jury in the Tyco trial says ability to deliberate has been irreparably compromised. Inside ahead.

Plus this.

(BEGIN VIDEO CLIP)

CARLOS WATSON, CNN POLITICAL ANALYST: Did a major new V.P. contender emerge from the 9/11 hearings? I'm Carlos Watson. Stay tuned next on the inside edge.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

O'BRIEN: A splintered and rancorous jury in the Tyco corruption trial is getting the weekend to cool off. It appears they need it.

Calling the jury worse than hung, a judge in New York today recessed the trial of Tyco's former CEO and its former finance chief.

Here to help us understand what's been going on in the jury room is Paul Zwier, Montgomery University in Atlanta.

Professor Zwier, good to have you join us.

PAUL ZWIER, MONTGOMERY UNIVERSITY: Thank you, Miles.

O'BRIEN: First of all, this whole 12 angry men and women notion here. I think we conjure up all kinds of images in our mind. That is for real and that really does happen every day, doesn't it?

ZWIER: Well, it does. You know, some states have gone to a 9-3 verdict. But New York hasn't. It requires a unanimous verdict in order to be able to have a jury verdict.

O'BRIEN: What's the dynamic like, though, when you get a one versus 11 or 11 versus one type of scenario in one of these jury rooms?

ZWIER: Well, actually, what -- obviously what's going on, especially after a judge has given one of those dynamite charges. You know, they call them Alan (ph) charges or dynamite charges, saying go back and talk to each other or try to figure out what it is that you can do to agree. There is enormous pressure that seems to be applied.

And it looks like, from what we can tell, that one of the jurors is just refusing to play, that this juror may just be turning away and not talking. And so the other jurors are writing notes out to the judge, saying they're not, this juror isn't deliberating in good faith.

And you know, what's going on is the defense has been praying for this, that one of their jurors has adopted their arguments about how they see the case.

O'BRIEN: And so far the judge's instructions, do you think he's handling this jury properly? Prodding them in just the right way based on what you've seen?

ZWIER: Well, it is really tricky. And I do think he has. One of his quotes is, you know, "I wish I was Abraham Lincoln. I could tell you exactly, then, what to say. But all I can tell you is go back and deliberate."

The judge cannot intrude in the jury's deliberations and usurp them in any way. But at the same time, the judge has got to say we've been at this for six months. For Pete's sake, come together if you can at all come together. We don't want to have to go through this all over again.

O'BRIEN: All right. One final thought here. There are reports over the wires and the "Wall Street Journal" is carrying this, that one of the jurors, juror No. 4, flashed an OK sign, apparently in the direction of the defense table, as the jury came back out to be dismissed for the weekend.

Now there's all kinds of ways this could be interpreted or misinterpreted. On the face of it, though, a communication between a juror and the defense, not a good thing?

ZWIER: Not a good thing at all. And you know, it is one of the little-known facts that there is this possibility that you might excuse a jury if the jury isn't deliberating in good faith.

Now how do you find that out? The jurors can tell on him, or the judge can do an interview. You'd have to do that very carefully, so the judge didn't seem to be intruding too much on it.

And so what you're worrying about is whether this little signal is something that really is an indication that they're not deliberating in good faith or whether the fix is in, if you think of a Grisham novel, or whether or not, in fact, it's nothing more than something harmless that, in fact, their opinion is that the defendant should win.

O'BRIEN: All right, Paul Zwier, we're out of time. Otherwise this would be the runaway interview. Thank you very much for your time. Appreciate it.

ZWIER: Thank you.

O'BRIEN: We know the Supreme Court's impact on the 2000 presidential election, but what effect it could have this year? Up next, Carlos Watson gives up the inside edge on presidential politics, the Supreme Court and a whole lot more.

And then, turbulence in Taiwan, an election dispute spins out of control.

Plus this...

(BEGIN VIDEO CLIP)

SEAN "P. DIDDY" COMBS, ENTERTAINER: There's a lot of lies in politics, a lot of deception. What you're hearing isn't what I think somebody can guarantee they can do.

(END VIDEO CLIP)

O'BRIEN: From politics and principle to fortune and fame, Wolf's one-on-one interview with rapper P. Diddy.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back to CNN. I'm Miles O'Brien in Washington, for Wolf Blitzer.

Election Day impact. Which party will benefit from the 9/11 Commission hearings in November? "The Inside Edge" with Carlos Watson just ahead.

But, first, a quick check of the latest headlines for you.

The U.S. Navy says a pilot who ejected from a fighter jet before its fiery crash today in North Carolina is being taken to a hospital. No word yet on his condition. The pilot was the only person aboard the F/A-18 when it went down during takeoff from Raleigh-Durham International Airport.

A major artery connecting New Jersey with Connecticut and the rest of New England is shut down in Bridgeport, Connecticut, because of last night's colossal tanker truck accident. The crash created a ball of fire that buckled Interstate 95. No serious injuries, however. The governor says it will take at least two weeks to repair and reopen the interstate.

This week's big news stories included the 9/11 investigation and Supreme Court arguments over the Pledge of Allegiance. Will those developments have an impact on the presidential race?

CNN political analyst Carlos Watson joined us from Mountain View, California, with "The Inside Edge."

(BEGIN VIDEOTAPE)

O'BRIEN: First of all, let's look at week we just saw. Obviously, the 9/11 Commission was such a blockbuster, it has to stand out in your mind. Anything in particular?

CARLOS WATSON, CNN POLITICAL ANALYST: It was a profound week, Miles.

I think two things really stood out as you liked at the two-day hearings. One, I think that, whereas a lot of commissions don't deliver very much, the bottom line here is that there will be real impact on the war on terror. I think it was a kick in the pants to everyone, both former Clinton officials and current Bush officials. And I think you'll start to see progress on things like border protection, on issues like checking containers that come into the country, protections of our train system, etcetera.

The second thing besides I think what will be some meaningful legislation, both during this year and next year, I think was that there's a new V.P. contender. I think Bob Kerrey, the chairman of the commission, now has got to be on the list of one of the top two or three choices, another Vietnam war hero, someone who cried early that there was a problem with terrorism, that we should do more, and someone who came across as a straight shooter. I think he helped himself a lot.

And now, along with John Edwards and probably Dick Gephardt, you got to think of him as one or two or three favorites at the moment.

O'BRIEN: Let's go back to that first point you made about actually something substantive congressman out of a commission like this. That's unusual, isn't it?

WATSON: It is.

A lot of times, you see things like the Social Security Commission and other things, where not much comes out of it except kind of a big report. But here, I think, behind the scenes, you will see probably more interagency cooperation between the FBI and CIA, which lots of people think is an issue. And I think you'll also to start to see more legislation, maybe not as much this summer, but maybe more after the next election, because, frankly, nobody wants to be raked over the coals again, besides the fact that obviously no one wants to see the kind of tragedy we had on 9/11.

O'BRIEN: All right, let's get out the crystal ball now. What are you going to be looking for next week?

WATSON: Next week, I think you will see a whole new issue begin to emerge, not from the Congress, not from the presidency, but a big issue in the presidential debate will be the Supreme Court.

A couple reasons for this. No. 1, there are a couple of major cases that are about to be decided before June, one which could help the Bush campaign, one which could potentially help the Kerry campaign. The Bush campaign could be helped if this Pledge of Allegiance case, as it's been called. If a ruling comes down that somehow says that "under God" is struck and is not appropriate, that could help Bush rally conservative religious supporters, some four million of whom sat home during the last election he wants to make sure come out and vote.

On the other side, there's an energy task force case, where Vice President Cheney doesn't want to share who was part of his energy task force. If it turns out that he has got to share it and it turns out there were some of the guys of Enron, stay tuned, Miles. This could end up becoming a big story as Kerry talks about this as evidence of corporate corruption.

O'BRIEN: The campaigns haven't really gotten to this issue of the Supreme Court and how pivotal it is right now, because, undoubtedly, whoever is elected is going to be making some serious decisions about new Supreme Court justices. Can you almost predict campaign commercials talking about this very issue, can't you?

WATSON: You know they will, Miles. The next president is likely to appoint two or three new justices, probably form a new majority on the court. And they'll make big decisions on issues like gay rights, as well as school prayer and other issues.

So expect both Kerry and Bush to tell their bases, vote for me not only because of what I can do legislatively, but because I will likely set the new course of the Supreme Court for the next 10 or 12 years. By the way, you'll hear Senate campaigns say the same thing, including out here in California, where Barbara Boxer will say, if you don't want to overturn Roe v. Wade, vote for me. I'll only confirm people -- I'll only vote to confirm people who support Roe v. Wade.

O'BRIEN: Our "Inside Edge" is now sharpened. Carlos Watson, have a good weekend. Thank you.

WATSON: Hey, you have a great weekend.

O'BRIEN: All right.

(END VIDEOTAPE)

O'BRIEN: For more insight on the upcoming election, check out Carlos Watson's new political column. You can find it at CNN.com/Carlos.

Well, you have heard of P. Diddy the rapper, but how about P. Diddy the revolutionary?

(BEGIN VIDEO CLIP)

SEAN "P. DIDDY" COMBS, ENTERTAINER: I'd probably be more interested in being a revolutionary.

WOLF BLITZER, CNN ANCHOR: What does that mean?

COMBS: Somebody that's, you know, making a change, forcing a change.

(END VIDEO CLIP)

O'BRIEN: Up next, Wolf's one-on-one interview with one of hip- hop's biggest names, Sean "P. Diddy" Combs.

And later, forget about a getaway. This horse gallops away right into the streets of a California city.

First, a quick look at some news making headlines all around the world. (BEGIN VIDEOTAPE)

O'BRIEN (voice-over): Protesters scuffled with riot police in Taiwan as government officials certified the reelection of president Chen Shui-bian. Mr. Chen won by just 30,000 votes, and 300,000 votes were declared invalid.

Plot probe. French investigators are questioning three bomb plot suspects. A shadowy group calling itself AZF has threatened to attack French railways unless a ransom is paid. And two unexploded bombs have been found in recent weeks along French railway tracks.

Turkey quake. An earthquake in Eastern Turkey has killed nine people, including at least six children. A tremor leveled most of the buildings in a small village about 600 miles east of Ankara, leaving hundreds homeless.

From cave to custody. One day after six Britons were rescued from a flooded cave in Mexico, the Mexican government has taken them into custody for suspected immigration violations. Four of the six were British sailors and Mexico says it appears they were conducting a training exercise without Mexican approval.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

O'BRIEN: Well, he first went by the moniker Puffy. Now it's P. Diddy. In between, hip-hop's Sean Combs evolved as a prime mover in the entertainment universe.

Here to tell us why, CNN's Jennifer Coggiola.

Hello, Jennifer.

JENNIFER COGGIOLA, CNN CORRESPONDENT: Hi, Miles.

Well, this is more than the story of just a rap artist. This is about a young boy from Harlem who came to be one of the most successful executives in the music industry, but not without a few bumps in the road.

(BEGIN VIDEOTAPE)

COGGIOLA (voice-over): An international player with an entertainment empire and a net worth of nearly $250 million, according to "Forbes," magazine, Sean Combs' hip-hop style and golden touch have left their marks on the music world and way beyond.

UNIDENTIFIED MALE: Puffy is my role model.

UNIDENTIFIED MALE: I want to be just like him when I grow up.

UNIDENTIFIED MALE: If he can make it, we can make it. UNIDENTIFIED MALE: He's become such a mainstream phenomenon, such a huge success, that he's influential across the board.

COGGIOLA: Harlem, New York, 1969, Sean Combs was born. He was just two when his father was tragically murdered. Working three jobs, his mother shortly after moved her children to a safer neighborhood and put her son through school.

While at Howard University in Washington, D.C., the 19-year-old shuttled back and forth to New York, interning at Uptown Entertainment, a music production company. It was only five years later in '94 that Sean "Puffy" Combs left Uptown to go out on his own, joining longtime friend and rap artist Christopher Wallace, also known as Notorious BIG, to launch Bad Boy Entertainment. It would be the murder of his friend just a few years later that would influence Combs' Grammy Award-winning tribute, "I'll Be Missing You."

Combs' presence in the music world took off. His first single album won over two dozen industry award nominations and two Grammys, showcasing his unique style of blending hip-hop with rock 'n' roll artists. As his musical career amplified, so did the publicity, not all of it glowing. Over a period of 18 troubling months, beginning '99, Combs was charged with second-degree harassment for severely beating a record executive and created a media frenzy with his romantic interest, Jennifer Lopez, a frenzy that escalated during another trial, this time revolving around a New York City nightclub shooting where the couple were partying.

Combs was acquitted on all charges, but his romance didn't survive. Looking for a clean slate, he dumped the name Puffy for his now professional name P. Diddy. Next up was his Sean John fashion line, seen on runway models and teenagers across the U.S. In 2002, it raked in $150 million in sales.

But aside from his record label, clothing line and restaurant chain, Combs says his most valuable work is his charity contributions. In 2003's Diddy Runs the City, he completed the New York marathon, raising $1 million for the New York public school system.

Now it's Combs the actor. After making his acting debut in 2001's "Made," Combs followed with a role in "Monster's Ball" as a death row inmate.

(BEGIN VIDEO CLIP, "MONSTER'S BALL")

COMBS: I'm a bad man.

(END VIDEO CLIP)

COGGIOLA: Earning critical praise and setting the stage for what's next for P. Diddy.

(END VIDEOTAPE)

COGGIOLA: Now, for his next venture, P. Diddy is going to make his Broadway debut in "Raisin in the Sun" this spring, a role last played by Sidney Poitier. So, Miles, he's certainly got some big shoes to fill there.

O'BRIEN: He's got the Midas touch and a lot of talent, doesn't he?

COGGIOLA: Yes, absolutely.

O'BRIEN: All right, Jennifer, thank you very much.

Before he left, Wolf Blitzer had a chance to sit down with Sean Combs and he spoke with him about his incredibly busy life.

(BEGIN VIDEOTAPE)

BLITZER: Sean, thanks very much for joining us. You're probably asked this question a lot. But what's the most important thing you're doing right now? Because you're on the cusp. You're doing all sorts of things.

SEAN "P. DIDDY" COMBS, ENTERTAINER: Yes.

All I can say right now is getting prepared to star on Broadway, "A Raisin in the Sun."

BLITZER: This is amazing, that you're going to be on Broadway.

COMBS: Yes.

BLITZER: A very traditional, classical performance.

COMBS: Yes, sir.

BLITZER: How hard is it?

COMBS: I'd have to say it's the hardest thing I've ever done, you know? I never had aspirations to star on Broadway. And this came across my plate, and I really jumped at the opportunity.

It's such a classic piece of literary work from Lorraine Hansberry. It's a story that rings true in my heart, about the American dream. And, you know, it's something I think that's important to be told right now, when a lot of dreams are being deferred.

BLITZER: How did you decide you wanted to do this and focus in all your energies, now, on Broadway?

COMBS: I mean, I just felt like -- when it came across my path I felt like it was something that I had to step up to this challenge. I wanted to. It was something that was historical and something that meant something to me and also, I think, would mean something to a lot of young people who haven't really been exposed to Broadway.

And also, it being an African-American play, and there are not a lot of them, it was huge opportunity and chance. And it was a story I wanted to be a part of. It's the first time it's been revived on Broadway in 50 years. BLITZER: You went, in a decade, from being an intern and a college kid who was from Howard University, basically, and then within 10 years you've got this empire...

COMBS: Yes.

BLITZER: ... that you've put together, where it's -- I'm guessing tens of millions, if not hundreds of millions, of dollars.

COMBS: Yes.

BLITZER: How much are you worth right now?

COMBS: I mean, it's -- I'm worth a lot.

BLITZER: We're talking -- we're talking in...?

COMBS: I mean, I don't -- you know, I like to value my success on how many people I've been -- been able to give a chance to.

I -- I employ over -- over 400 employees worldwide. You know, I'm an independent company. I own my own record company, my clothing line. All of my ventures, I'm an owner of it.

I'm the owner of my catalogue, wrote my master's. And that's something that I've very proud of. But the most important thing, not the monetary aspects. It's how many lives I could touch and change and help to -- to get a chance to so they could realize their dreams and have a life of their own.

BLITZER: You want to be an inspiration to a lot of young people.

COMBS: I try my best. I think that -- I think that's important. I won't shy away from trying my best to be a role model. And one of my ways that I try to be a role model is by being real and being true and being honest, and you know, living my life the best way I can and doing the best I can on a day to day basis.

BLITZER: Do you want to go into politics?

COMBS: No, not at all.

BLITZER: Why?

COMBS: I mean, politics to me is -- there's a lot of lies in politics, a lot of deception. What you're hearing isn't what I think somebody can guarantee they could do. I would have to say, I'd probably be more interested in being a revolutionary.

BLITZER: What does that mean?

COMBS: Somebody that's, you know, making a change, forcing a change, you know, exposing -- exposing the lies and forcing a change and overturning the liars, you know?

(CROSSTALK) BLITZER: How do you go about doing that?

COMBS: I would also have to say -- I would also have to say I would, you know -- I would want to be an activist, you know, before I would want to be a politician.

BLITZER: So you -- you are an activist to a certain degree.

COMBS: Yes.

BLITZER: Because you supported Al Sharpton.

COMBS: I support the -- you know, overturning the Rockefeller Law, which should be overturned in New York state.

BLITZER: What's that?

COMBS: You know, this is the law that we have where you have people that are jailed for drug related crimes. And it could be their first offense, and they could go away for life for a minimal, you know, minimal -- having minimal drugs on them in their possession.

So you have a mother and maybe she had, you know, ten vials of crack on her. And she stays in, you know, up to 25 years to life.

And this was something that was supposed to deter, you know, drug kingpins. And you know, it just didn't work. And it's really just affected the black community, the Latino community and put a lot of mothers and fathers and daughters and sons away for a long time, people that never -- made their first mistake.

And so, you know, I'm an activist on that.

(END VIDEOTAPE)

O'BRIEN: Getting involved in the upcoming election. Find out if Sean "P. Diddy" Combs will actively support a campaign for a presidential candidate. Wolf's interview with the music mogul continues after a break.

(COMMERCIAL BREAK)

O'BRIEN: Earlier we asked: Which artist or group received the first ever Grammy Award in the rap music genre? The answer, D.J. Jazzy Jeff and the Fresh Prince.

(BEGIN VIDEO CLIP)

WILL SMITH, SINGER (singing): Parents just don't understand.

(END VIDEO CLIP)

O'BRIEN: In 1989, the duo won in the best rap performance category for "Parents Just Don't Understand." That year, the award show didn't differentiate between rap solo artist and group. Now, before the break, we brought you the first part of Wolf Blitzer's interview with Sean Combs. At one point, he talked about his interest in politics. As the interview continued, Wolf asked him about the presidential race.

(BEGIN VIDEOTAPE)

BLITZER: Do you want to get involved in the presidential campaign this year? You support Kerry, or you support Bush?

COMBS: I'm looking into it, you know. I'm -- I definitely -- you know, I'm looking towards supporting Kerry. You know, some...

BLITZER: There have been some reports you're going to work with Bill Clinton, and you're going to try to generate some -- get some young people registered.

COMBS: I think -- I think that it's very important. I think that it's very important that young people get involved in this election. I think young people who could decide who is in the White House...

BLITZER: Tell me what...

COMBS: But I have to be honest. I'm not just going to go and do it because -- because Bill Clinton called me or the president of the Democratic Party called me.

BLITZER: Did Bill Clinton call you?

COMBS: I have -- I've been invited by the Democratic Party and various people in the Democratic Party...

BLITZER: Terry McAuliffe, the chairman?

COMBS: ... to -- yes, to -- to be involved and -- in being helpful in this election. And it's something that I'm pondering, you know? Because if I do something, I want to do it all the way.

But to be honest, I -- it's -- Kerry and Bush, anybody running for president, I can only go on what I'm hearing them say. And you know, I hear a lot of talking around in circles, like I usually do.

It's time that we make these candidates accountable, and it's time they start talking about issues that affect urban inner city life, that affect young people, education, health care and also affect minorities.

You know, I mean -- you have people that -- I know that there are wars going on, but you have people that are dying right in our own back yards from poverty, illiteracy and just, you know, depression of not being able to make something of themselves.

And you know, I know it's the hardest job in the world to be the president, you know? So that's why I watch knocking people too much. But I feel like, you know, this president that's in office has had an ample chance.

And that's why I'm even more, you know, leery of who's going to be in the office next. No matter if it's a Republican or a Democrat, I want what's the best for all of us, for our people. I want what's the best for our kids.

And if my power as a youth leader can affect that in a positive way, and I can feel trustworthy to trust somebody that they want to deal with these issues that are important to us, and I feel like I would defend someone like Kerry.

BLITZER: Have you met with Kerry?

COMBS: No, I haven't yet. I look forward -- I look forward to meeting with him, you know, if the time -- if the time arises.

BLITZER: What's the next, after the Broadway play? After the registering young people to vote? After getting involved a little bit in supporting various causes? What's your next big challenge that you're looking forward to?

COMBS: My own goal and challenge with me is to become the best person that I could become and make sure that, due to my success and power, that -- that I don't get pulled in ways that I don't keep focused on what I am.

I'm a child of God. I give all glory to God. And I have a responsibility to be the best child of God that I could be. And I have to stay focused on that. Because the money and the power and the sales aren't going to get me into heaven at the end of the day. And it won't have as much of an impact as me having a positive impact on somebody's life, especially my kids and my family.

BLITZER: Sean, good luck.

COMBS: All right. Thank you. Thank you very much.

(END VIDEOTAPE)

O'BRIEN: Up next, in it's off to the races. Why is this truck chasing this horse? The answer is coming up in our picture of the day.

(COMMERCIAL BREAK)

O'BRIEN: Our picture of the day comes from a San Francisco area racetrack. This is what it looked like when a horse named Deja Vu threw its rider during a workout and then ran through a gate and along a road. It kind of looks like an old Mustang commercial. Track workers eventually caught up with him. The horse needed a few stitches for superficial wounds, but he should be Deja Vu all over again in about two months.

A reminder, you can always catch Wolf Blitzer at this time Monday through Friday. I'm Miles O'Brien. Thanks for being with us on WOLF BLITZER REPORTS. Up next, "LOU DOBBS TONIGHT."

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


Aired March 26, 2004 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
MILES O'BRIEN, CNN ANCHOR (voice-over): Your pocketbook at stake as they square-off over the economy.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The unemployment rate today is lower than the average rate in the 1970s, 1980s and 1990s.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: And my plan is for 10 million new jobs in the next four years.

O'BRIEN: Terror threats. An ally stands up to al Qaeda.

SHEIKH RASHID AHMEN, PAKISTANI INFORMATION MIN.: ... that we finish all these terrorists, wherever they are.

O'BRIEN: Hit and run. Convicted of a felony. Will a retired bishop spend time behind bars?

Music mogul.

SEAN "P. DIDDY" COMBS, ENTERTAINER: The money and the power and the sales aren't going to get me into Heaven at the end of the day.

O'BRIEN: Wolf raps with Sean "P. Diddy" Combs.

ANNOUNCER: This WOLF BLITZER REPORTS for Friday, March 26, 2004.

(END VIDEOTAPE)

O'BRIEN: Hello. I'm Miles O'Brien. Wolf is off today.

We begin with a sharp new escalation in the war of words over events leading up to 9/11. The White House has been hammering its former counterterrorist chief Richard Clarke who's alleged that the Bush administration mishandled the terror threat.

And now members of Congress are upping the ante, pushing to declassify some formerly secret testimony. Let's go live to our congressional correspondent Joe Johns. Joe, what's the latest?

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: First, certainly, is the No. 1 Republican who has actually called for an investigation, Miles. He is essentially questioning whether Clarke lied. He says a number of things have happened here, including the fact that apparently, Clark praised the administration in conversations with reporter in August of 2002, Clarke apparently praised the administration in intelligence committee hearings around July 2002. But now is sharply critical of the administration, in a hot selling new book.

He wants that closed testimony in July of 2002, declassified so Congress can judge for itself whether Clarke lied.

(BEGIN VIDEO CLIP)

SEN. BILL FRIST (R-TN), MAJORITY LEADER: It is one thing for Mr. Clarke to dissemble in front of the media, in front of the press. But if he lied under oath to the United States Congress, it's a far, far more serious matter.

(END VIDEO CLIP)

JOHNS: Democratic Senator Bob Graham of Florida was there during all that. That he was co-chair of the Intelligence Committee during that time. He says he sees nothing wrong with declassifying all the information, and he sees no contradictions between what Clarke was saying then and what he's saying now.

(BEGIN VIDEO CLIP)

SEN. BOB GRAHAM (D), FLORIDA: Absolutely. And I think there should be even more declassification.

First, the president should declassify all of Mr. Clarke's statement, not as he has done previously, cherry pick just those parts that make the president's case.

(END VIDEO CLIP)

JOHNS: Clarke, for his part, has been asked on the record as to whether he lied, and if so, why? Clarke said he did not lie, that simply, he was asked by the administration to put best foot forward.

Obviously, all of this has become a political football. Senator John Kerry, the Democratic presidential candidate, saying my challenge to the Bush administration would be if he's not believable and they have reason to show it then prosecute him for perjury, because he is under oath, they have a perfect right to do that. So on it goes -- Miles.

O'BRIEN: Joe Johns on Capitol Hill watching the political football game. Appreciate it.

National Security Adviser Condoleezza Rice may be headed for another session with the September 11 Commission. The White House says it is willing to make Rice available for a second appearance before the panel. But it says the second appearance, like the first, must be behind closed doors. Here is your turn to weigh in on this important story. Our "Web Question of the Day" is this: if Condoleezza Rice meets privately again with the 9/11 panel, it could close the book on the commission's questions? You can vote right now at cnn.com/wolf. We'll have the results little later in this broadcast.

Democratic presidential candidate John Kerry came out swinging on the economy today. CNN's Sean Callebs standing by with more on that. Hello, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Hello, Sean. hello, Miles. Indeed, you are exactly right. John Kerry making it clear, he plans on making the economy and the flow of the U.S. jobs overseas among the cornerstones of his campaign.

(BEGIN VIDEOTAPE)

CALLEBS (voice-over): The economy will be booming in a Kerry administration, so predicted a presumptive Democratic nominee.

KERRY: I will focus on raising American competitiveness by spurring the growth new industries like the broadband technology that will dominate future, by lowering health care costs that put American businesses at a competitive and priced disadvantage, by lowering energy costs which burdens businesses and consumers and by creating half a million new jobs in renewable fuels to make America energy independent of Mideast oil in ten years.

CALLEBS: Among the initiatives unveiled today, reforming the corporate tax code, improving job training and skills for American workers and restoring U.S. fiscal discipline.

Taking a pages Bill Clinton's "It's the economy, stupid" campaign, which unseeded the president's father in 1992, Kerry hammered the president.

KERRY: This president doesn't have a record it run on, but a record to run from. And that's what he's doing.

CALLEBS: At pains to present himself as a pro-business candidate, Kerry announced a carrot and stick approach it corporate America, calling for an end to corporate tax breaks on overseas income, lowering the tax rate to 33.25 percent from 35 percent and encouraging firms to shift investments to the U.S.

(END VIDEOTAPE)

CALLEBS: It's no accident that Kerry chose Michigan, the labor intensive state, to make his pitch. It is considered one of the key battlegrounds in the upcoming presidential election. In 2000 Al Gore carried Michigan, scrapping by, Miles, with 51 percent of the vote.

O'BRIEN: Sean Callebs in our Washington newsroom, thank you very much.

President Bush tried to shift the spotlight on the economy campaigning in the Southwest today. He talked about expanding home ownership. President is in Phoenix at this hour. CNN White House correspondent Dana Bash is standing by from there. Hello, Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Hi, Miles. And while John Kerry was in Michigan talking about his new plan for outsourcing and also as you heard hitting the president on more than 2 million jobs lost on his watch, the president came here to two Southwest states, first to New Mexico, now in Arizona to say essentially, it's about more than jobs.

As the incumbent, of course, this is for better or worse, the Bush economy. And the president is trying to put the focus on what he says are the positive aspects of it. That's exactly what he tried to do today.

(BEGIN VIDEO CLIP)

BUSH: We're the fastest-growing, major industrialized nation in the world. Unemployment rate in Arizona has gone from 5.9 percent last year to 5.2 percent this year. Inflation is low. Interest rates are low. Manufacturing activity is up.

Now, this economy has gone through a lot. And you know why? Because the American workers and the American people, and the American entrepreneurs are strong, steady and resolute.

(END VIDEO CLIP)

BASH: Now, home ownership and the rise in home ownership was the theme of the day. And the president talking about the fact that 68 percent of Americans own their own home. That's the highest nationwide in American history, he said.

But when he sat down with some folks here at a carpenter's training center, the head of the carpenter's union sat down to talk about home ownership and building homes. He took the opportunity to say, Mr. President, this is the most important thing to me and to us is jobs, which, of course, forced the president to say that jobs are also important to him, creating jobs.

So it goes to show you, Miles, in a situation where the president is trying to change the, is it's hard to do sometimes -- Miles.

O'BRIEN: All right, Dana. Quick question for you, any response to the Kerry economic plan that was floated today?

BASH: The president didn't say a word about it. But his campaign was really out in force talking about the fact that they do not think it's what it's all cracked up to be.

They made a couple points. First of all, they say it would not prevent outsourcing. They say that there are other things beside tax incentives that forces jobs overseas.

Also they say that it would create a complicated accounting for companies. Essentially saying this would be a boondoggle for accountants and make it a nightmare for these big companies. And also they said that it would not help small businesses.

And of course, pointing to another part of the Kerry tax plan which is to cut the president's highest bracket in tax cuts. They say that would hurt small businesses and again they say that would hurt jobs -- Miles.

O'BRIEN: Dana Bash, thank you very much. You can hear from presidential candidate John Kerry at length with "LOU DOBBS TONIGHT" right after this program, 6:00 p.m. Eastern, 3:00 p.m. Pacific.

Standing firm in the wake of new threats from al Qaeda. Pakistan's government confirming its commitment to the war on terror, but will the pressure be too much?

Probation or prison? A Catholic bishop convicted of a fatal hit and run accident received his punishment a few moments ago.

Plus this...

(BEGIN VIDEO CLIP)

WOLF BLITZER, CNN ANCHOR: How much are you worth?

COMBS: Millions. I'm worth a lot.

(END VIDEO CLIP)

O'BRIEN: From intern to icon and still moving on up. How Sean "P. Diddy" Combs could influence the upcoming election. Wolf Blitzer, one on one with the music industry phenomenon.

But first, today's "News Quiz."

(BEGIN VIDEO CLIP)

O'BRIEN (voice-over): Which artist or group received the first ever Grammy Award in the rap music genre? MC Hammer, DJ Jazzy Jeff and the Fresh Prince, Coolio or the Beastie Boys? The answer is coming up?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

O'BRIEN: A retired Catholic bishop is sentenced.

Plus trouble in the Tyco trial. Heated exchanges inside the jury room for deliberations, and ultimately a decision in doubt. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back. He's believed to be the first Roman Catholic bishop in the U.S. history to be convicted of a felony. And just a short while ago Thomas O'Brien found out his punishment for a deadly hit and run accident in February. CNN national correspondent Frank Buckley joining us from Phoenix with details of all of this. We saw it unfold a new moments ago -- Frank.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Miles, the decision coming from Judge Stephen Gerst after more than an hour of explanation as to how he arrived at his decision.

The decision is that Bishop Thomas O'Brien will get four years of probation, that's the maximum period of probation allowable in a Class IV felony conviction. As part of that too, conduct 1,000 hours of community service in which he will counsel severely injured or dying members of this community. His driver's license will be suspended for five years.

And he has a six-month long deferred jail sentence. That doesn't mean that the bishop will be going to jail. But, in fact, what it means is as long as Bishop O'Brien conducts the probation as required, it's believed that the deferred jail sentence will be removed. If for some reason the probation isn't satisfied, that's when this (UNINTELLIGIBLE) deferred jail sentence would take place.

As I said, Miles, Judge Stephen Gerst going to great lengths to explain how he arrived at his decision. He told the people in the courtroom, he looked at all 99 cases going back to 1996 of a similar nature, reviewed all the factors that went into each and every one of those cases. And that's how he arrive at his decision -- Miles.

O'BRIEN: Frank, question for you. Did the judge factor in at all the church sex scandal, which, of course, Thomas O'Brien was a part of, ultimately cutting a deal where he resigned over this past summer did. That factor in at all?

BUCKLEY: He did say that was one of the many factors he looked at. But he didn't give that any more weight than the other factors and he didn't ascribe any negative aspects to that particular factor. He said that he did look at that, but he also looked at all the positive things that were included in the package from letters to testimony. And to the nature of the crime, and what happened, what he was convicted of. He looked at everything in totality -- Miles.

O'BRIEN: Frank, the maximum here was upwards of four years in jail with $150,000 fine. Would you call this a light sentence or middle of the road sentence?

BUCKLEY: Certainly, it's light in terms of the possible range that he could have faced. He could have faced prison time, he could have faced jail time in county jail. But the judge went for probation.

What the judge was trying to carefully do is show in the case of all of these 99 cases going back to 1996, that's all of the cases in the Phoenix area during this time period. All of the cases that had similar factors like the factors that were involved in Bishop O'Brien's case, you had no one going to prison for four years, no one getting jail time. In the one particular case that was most on point, it was the same soft of thing, six months, deferred jail, plus probation.

O'BRIEN: CNN's Frank Buckley in Phoenix, thanks very much.

Other news for you now. A CIA spokesman says the voice on the al Qaeda audiotape is indeed likely of that Ayman al-Zawahiri. In his recorded rant Osama bin Laden's No. 2 man threatened a key ally in the war on terror. But so far Pakistan is standing firm. CNN senior international correspondent Nic Robertson reports from Islamabad.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): Anger for Pakistan's government sparking this demonstration.

Although protests following Friday prayers are not unusual, emotion this day fueled by the government's hard-hand hunt for al Qaeda in remote tribal lands.

Into this potentially volatile mix, Ayman al-Zawahiri, the man Pakistani officials thought a week ago they might have cornered on their border, is now believed to be on an audiotape calling for the overthrow of Pakistani President Pervez Musharraf.

AYMAN AL-ZAWAHIRI (through translator): The United States has told Musharraf to seek revenge from the border tribes, especially the honorable Pashtun tribes. That is to defeat the grassroot efforts to Jihad against its crusader movement. So he began by destroying houses, jailing many and killing people in markets.

ROBERTSON: Not clear if he's referring to the current military operation in Waziristan. Officials, though, readily dismissing the message.

AHMEN: We condemn this statement, and we stand for our commitment against the terrorism, and we are going to finish all these terrorists.

ROBERTSON: In the Waziristan offensive, though, that has meant bowing to tribal pressure, and back off on artillery and helicopter offensives in favor of deadlocked negotiations.

Adding to government frustrations, the discovery of tunnels indicating high-value targets authorities thought they had cornered may well have escaped, raising the question of Pakistan's ability to round up terror suspects.

FAISAL SALAH HAYAT, PAKISTANI INTERIOR MIN.: (UNINTELLIGIBLE) only then we shall say with great authority and finality as to who exactly have in there.

ROBERTSON (on camera): As the United States is relying heavily on Pakistan to police up al Qaeda on their side of the Afghan/Pakistan border, failures here will likely be cause for concern in Washington. But what Pakistani officials want President Bush and his administration to understand is the pressures they are up against here.

Nic Robertson, CNN, Islamabad, Pakistan.

(END VIDEOTAPE)

O'BRIEN: Arguments in the jury room and a verdict in doubt. Why the jury in the Tyco trial says ability to deliberate has been irreparably compromised. Inside ahead.

Plus this.

(BEGIN VIDEO CLIP)

CARLOS WATSON, CNN POLITICAL ANALYST: Did a major new V.P. contender emerge from the 9/11 hearings? I'm Carlos Watson. Stay tuned next on the inside edge.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

O'BRIEN: A splintered and rancorous jury in the Tyco corruption trial is getting the weekend to cool off. It appears they need it.

Calling the jury worse than hung, a judge in New York today recessed the trial of Tyco's former CEO and its former finance chief.

Here to help us understand what's been going on in the jury room is Paul Zwier, Montgomery University in Atlanta.

Professor Zwier, good to have you join us.

PAUL ZWIER, MONTGOMERY UNIVERSITY: Thank you, Miles.

O'BRIEN: First of all, this whole 12 angry men and women notion here. I think we conjure up all kinds of images in our mind. That is for real and that really does happen every day, doesn't it?

ZWIER: Well, it does. You know, some states have gone to a 9-3 verdict. But New York hasn't. It requires a unanimous verdict in order to be able to have a jury verdict.

O'BRIEN: What's the dynamic like, though, when you get a one versus 11 or 11 versus one type of scenario in one of these jury rooms?

ZWIER: Well, actually, what -- obviously what's going on, especially after a judge has given one of those dynamite charges. You know, they call them Alan (ph) charges or dynamite charges, saying go back and talk to each other or try to figure out what it is that you can do to agree. There is enormous pressure that seems to be applied.

And it looks like, from what we can tell, that one of the jurors is just refusing to play, that this juror may just be turning away and not talking. And so the other jurors are writing notes out to the judge, saying they're not, this juror isn't deliberating in good faith.

And you know, what's going on is the defense has been praying for this, that one of their jurors has adopted their arguments about how they see the case.

O'BRIEN: And so far the judge's instructions, do you think he's handling this jury properly? Prodding them in just the right way based on what you've seen?

ZWIER: Well, it is really tricky. And I do think he has. One of his quotes is, you know, "I wish I was Abraham Lincoln. I could tell you exactly, then, what to say. But all I can tell you is go back and deliberate."

The judge cannot intrude in the jury's deliberations and usurp them in any way. But at the same time, the judge has got to say we've been at this for six months. For Pete's sake, come together if you can at all come together. We don't want to have to go through this all over again.

O'BRIEN: All right. One final thought here. There are reports over the wires and the "Wall Street Journal" is carrying this, that one of the jurors, juror No. 4, flashed an OK sign, apparently in the direction of the defense table, as the jury came back out to be dismissed for the weekend.

Now there's all kinds of ways this could be interpreted or misinterpreted. On the face of it, though, a communication between a juror and the defense, not a good thing?

ZWIER: Not a good thing at all. And you know, it is one of the little-known facts that there is this possibility that you might excuse a jury if the jury isn't deliberating in good faith.

Now how do you find that out? The jurors can tell on him, or the judge can do an interview. You'd have to do that very carefully, so the judge didn't seem to be intruding too much on it.

And so what you're worrying about is whether this little signal is something that really is an indication that they're not deliberating in good faith or whether the fix is in, if you think of a Grisham novel, or whether or not, in fact, it's nothing more than something harmless that, in fact, their opinion is that the defendant should win.

O'BRIEN: All right, Paul Zwier, we're out of time. Otherwise this would be the runaway interview. Thank you very much for your time. Appreciate it.

ZWIER: Thank you.

O'BRIEN: We know the Supreme Court's impact on the 2000 presidential election, but what effect it could have this year? Up next, Carlos Watson gives up the inside edge on presidential politics, the Supreme Court and a whole lot more.

And then, turbulence in Taiwan, an election dispute spins out of control.

Plus this...

(BEGIN VIDEO CLIP)

SEAN "P. DIDDY" COMBS, ENTERTAINER: There's a lot of lies in politics, a lot of deception. What you're hearing isn't what I think somebody can guarantee they can do.

(END VIDEO CLIP)

O'BRIEN: From politics and principle to fortune and fame, Wolf's one-on-one interview with rapper P. Diddy.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back to CNN. I'm Miles O'Brien in Washington, for Wolf Blitzer.

Election Day impact. Which party will benefit from the 9/11 Commission hearings in November? "The Inside Edge" with Carlos Watson just ahead.

But, first, a quick check of the latest headlines for you.

The U.S. Navy says a pilot who ejected from a fighter jet before its fiery crash today in North Carolina is being taken to a hospital. No word yet on his condition. The pilot was the only person aboard the F/A-18 when it went down during takeoff from Raleigh-Durham International Airport.

A major artery connecting New Jersey with Connecticut and the rest of New England is shut down in Bridgeport, Connecticut, because of last night's colossal tanker truck accident. The crash created a ball of fire that buckled Interstate 95. No serious injuries, however. The governor says it will take at least two weeks to repair and reopen the interstate.

This week's big news stories included the 9/11 investigation and Supreme Court arguments over the Pledge of Allegiance. Will those developments have an impact on the presidential race?

CNN political analyst Carlos Watson joined us from Mountain View, California, with "The Inside Edge."

(BEGIN VIDEOTAPE)

O'BRIEN: First of all, let's look at week we just saw. Obviously, the 9/11 Commission was such a blockbuster, it has to stand out in your mind. Anything in particular?

CARLOS WATSON, CNN POLITICAL ANALYST: It was a profound week, Miles.

I think two things really stood out as you liked at the two-day hearings. One, I think that, whereas a lot of commissions don't deliver very much, the bottom line here is that there will be real impact on the war on terror. I think it was a kick in the pants to everyone, both former Clinton officials and current Bush officials. And I think you'll start to see progress on things like border protection, on issues like checking containers that come into the country, protections of our train system, etcetera.

The second thing besides I think what will be some meaningful legislation, both during this year and next year, I think was that there's a new V.P. contender. I think Bob Kerrey, the chairman of the commission, now has got to be on the list of one of the top two or three choices, another Vietnam war hero, someone who cried early that there was a problem with terrorism, that we should do more, and someone who came across as a straight shooter. I think he helped himself a lot.

And now, along with John Edwards and probably Dick Gephardt, you got to think of him as one or two or three favorites at the moment.

O'BRIEN: Let's go back to that first point you made about actually something substantive congressman out of a commission like this. That's unusual, isn't it?

WATSON: It is.

A lot of times, you see things like the Social Security Commission and other things, where not much comes out of it except kind of a big report. But here, I think, behind the scenes, you will see probably more interagency cooperation between the FBI and CIA, which lots of people think is an issue. And I think you'll also to start to see more legislation, maybe not as much this summer, but maybe more after the next election, because, frankly, nobody wants to be raked over the coals again, besides the fact that obviously no one wants to see the kind of tragedy we had on 9/11.

O'BRIEN: All right, let's get out the crystal ball now. What are you going to be looking for next week?

WATSON: Next week, I think you will see a whole new issue begin to emerge, not from the Congress, not from the presidency, but a big issue in the presidential debate will be the Supreme Court.

A couple reasons for this. No. 1, there are a couple of major cases that are about to be decided before June, one which could help the Bush campaign, one which could potentially help the Kerry campaign. The Bush campaign could be helped if this Pledge of Allegiance case, as it's been called. If a ruling comes down that somehow says that "under God" is struck and is not appropriate, that could help Bush rally conservative religious supporters, some four million of whom sat home during the last election he wants to make sure come out and vote.

On the other side, there's an energy task force case, where Vice President Cheney doesn't want to share who was part of his energy task force. If it turns out that he has got to share it and it turns out there were some of the guys of Enron, stay tuned, Miles. This could end up becoming a big story as Kerry talks about this as evidence of corporate corruption.

O'BRIEN: The campaigns haven't really gotten to this issue of the Supreme Court and how pivotal it is right now, because, undoubtedly, whoever is elected is going to be making some serious decisions about new Supreme Court justices. Can you almost predict campaign commercials talking about this very issue, can't you?

WATSON: You know they will, Miles. The next president is likely to appoint two or three new justices, probably form a new majority on the court. And they'll make big decisions on issues like gay rights, as well as school prayer and other issues.

So expect both Kerry and Bush to tell their bases, vote for me not only because of what I can do legislatively, but because I will likely set the new course of the Supreme Court for the next 10 or 12 years. By the way, you'll hear Senate campaigns say the same thing, including out here in California, where Barbara Boxer will say, if you don't want to overturn Roe v. Wade, vote for me. I'll only confirm people -- I'll only vote to confirm people who support Roe v. Wade.

O'BRIEN: Our "Inside Edge" is now sharpened. Carlos Watson, have a good weekend. Thank you.

WATSON: Hey, you have a great weekend.

O'BRIEN: All right.

(END VIDEOTAPE)

O'BRIEN: For more insight on the upcoming election, check out Carlos Watson's new political column. You can find it at CNN.com/Carlos.

Well, you have heard of P. Diddy the rapper, but how about P. Diddy the revolutionary?

(BEGIN VIDEO CLIP)

SEAN "P. DIDDY" COMBS, ENTERTAINER: I'd probably be more interested in being a revolutionary.

WOLF BLITZER, CNN ANCHOR: What does that mean?

COMBS: Somebody that's, you know, making a change, forcing a change.

(END VIDEO CLIP)

O'BRIEN: Up next, Wolf's one-on-one interview with one of hip- hop's biggest names, Sean "P. Diddy" Combs.

And later, forget about a getaway. This horse gallops away right into the streets of a California city.

First, a quick look at some news making headlines all around the world. (BEGIN VIDEOTAPE)

O'BRIEN (voice-over): Protesters scuffled with riot police in Taiwan as government officials certified the reelection of president Chen Shui-bian. Mr. Chen won by just 30,000 votes, and 300,000 votes were declared invalid.

Plot probe. French investigators are questioning three bomb plot suspects. A shadowy group calling itself AZF has threatened to attack French railways unless a ransom is paid. And two unexploded bombs have been found in recent weeks along French railway tracks.

Turkey quake. An earthquake in Eastern Turkey has killed nine people, including at least six children. A tremor leveled most of the buildings in a small village about 600 miles east of Ankara, leaving hundreds homeless.

From cave to custody. One day after six Britons were rescued from a flooded cave in Mexico, the Mexican government has taken them into custody for suspected immigration violations. Four of the six were British sailors and Mexico says it appears they were conducting a training exercise without Mexican approval.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

O'BRIEN: Well, he first went by the moniker Puffy. Now it's P. Diddy. In between, hip-hop's Sean Combs evolved as a prime mover in the entertainment universe.

Here to tell us why, CNN's Jennifer Coggiola.

Hello, Jennifer.

JENNIFER COGGIOLA, CNN CORRESPONDENT: Hi, Miles.

Well, this is more than the story of just a rap artist. This is about a young boy from Harlem who came to be one of the most successful executives in the music industry, but not without a few bumps in the road.

(BEGIN VIDEOTAPE)

COGGIOLA (voice-over): An international player with an entertainment empire and a net worth of nearly $250 million, according to "Forbes," magazine, Sean Combs' hip-hop style and golden touch have left their marks on the music world and way beyond.

UNIDENTIFIED MALE: Puffy is my role model.

UNIDENTIFIED MALE: I want to be just like him when I grow up.

UNIDENTIFIED MALE: If he can make it, we can make it. UNIDENTIFIED MALE: He's become such a mainstream phenomenon, such a huge success, that he's influential across the board.

COGGIOLA: Harlem, New York, 1969, Sean Combs was born. He was just two when his father was tragically murdered. Working three jobs, his mother shortly after moved her children to a safer neighborhood and put her son through school.

While at Howard University in Washington, D.C., the 19-year-old shuttled back and forth to New York, interning at Uptown Entertainment, a music production company. It was only five years later in '94 that Sean "Puffy" Combs left Uptown to go out on his own, joining longtime friend and rap artist Christopher Wallace, also known as Notorious BIG, to launch Bad Boy Entertainment. It would be the murder of his friend just a few years later that would influence Combs' Grammy Award-winning tribute, "I'll Be Missing You."

Combs' presence in the music world took off. His first single album won over two dozen industry award nominations and two Grammys, showcasing his unique style of blending hip-hop with rock 'n' roll artists. As his musical career amplified, so did the publicity, not all of it glowing. Over a period of 18 troubling months, beginning '99, Combs was charged with second-degree harassment for severely beating a record executive and created a media frenzy with his romantic interest, Jennifer Lopez, a frenzy that escalated during another trial, this time revolving around a New York City nightclub shooting where the couple were partying.

Combs was acquitted on all charges, but his romance didn't survive. Looking for a clean slate, he dumped the name Puffy for his now professional name P. Diddy. Next up was his Sean John fashion line, seen on runway models and teenagers across the U.S. In 2002, it raked in $150 million in sales.

But aside from his record label, clothing line and restaurant chain, Combs says his most valuable work is his charity contributions. In 2003's Diddy Runs the City, he completed the New York marathon, raising $1 million for the New York public school system.

Now it's Combs the actor. After making his acting debut in 2001's "Made," Combs followed with a role in "Monster's Ball" as a death row inmate.

(BEGIN VIDEO CLIP, "MONSTER'S BALL")

COMBS: I'm a bad man.

(END VIDEO CLIP)

COGGIOLA: Earning critical praise and setting the stage for what's next for P. Diddy.

(END VIDEOTAPE)

COGGIOLA: Now, for his next venture, P. Diddy is going to make his Broadway debut in "Raisin in the Sun" this spring, a role last played by Sidney Poitier. So, Miles, he's certainly got some big shoes to fill there.

O'BRIEN: He's got the Midas touch and a lot of talent, doesn't he?

COGGIOLA: Yes, absolutely.

O'BRIEN: All right, Jennifer, thank you very much.

Before he left, Wolf Blitzer had a chance to sit down with Sean Combs and he spoke with him about his incredibly busy life.

(BEGIN VIDEOTAPE)

BLITZER: Sean, thanks very much for joining us. You're probably asked this question a lot. But what's the most important thing you're doing right now? Because you're on the cusp. You're doing all sorts of things.

SEAN "P. DIDDY" COMBS, ENTERTAINER: Yes.

All I can say right now is getting prepared to star on Broadway, "A Raisin in the Sun."

BLITZER: This is amazing, that you're going to be on Broadway.

COMBS: Yes.

BLITZER: A very traditional, classical performance.

COMBS: Yes, sir.

BLITZER: How hard is it?

COMBS: I'd have to say it's the hardest thing I've ever done, you know? I never had aspirations to star on Broadway. And this came across my plate, and I really jumped at the opportunity.

It's such a classic piece of literary work from Lorraine Hansberry. It's a story that rings true in my heart, about the American dream. And, you know, it's something I think that's important to be told right now, when a lot of dreams are being deferred.

BLITZER: How did you decide you wanted to do this and focus in all your energies, now, on Broadway?

COMBS: I mean, I just felt like -- when it came across my path I felt like it was something that I had to step up to this challenge. I wanted to. It was something that was historical and something that meant something to me and also, I think, would mean something to a lot of young people who haven't really been exposed to Broadway.

And also, it being an African-American play, and there are not a lot of them, it was huge opportunity and chance. And it was a story I wanted to be a part of. It's the first time it's been revived on Broadway in 50 years. BLITZER: You went, in a decade, from being an intern and a college kid who was from Howard University, basically, and then within 10 years you've got this empire...

COMBS: Yes.

BLITZER: ... that you've put together, where it's -- I'm guessing tens of millions, if not hundreds of millions, of dollars.

COMBS: Yes.

BLITZER: How much are you worth right now?

COMBS: I mean, it's -- I'm worth a lot.

BLITZER: We're talking -- we're talking in...?

COMBS: I mean, I don't -- you know, I like to value my success on how many people I've been -- been able to give a chance to.

I -- I employ over -- over 400 employees worldwide. You know, I'm an independent company. I own my own record company, my clothing line. All of my ventures, I'm an owner of it.

I'm the owner of my catalogue, wrote my master's. And that's something that I've very proud of. But the most important thing, not the monetary aspects. It's how many lives I could touch and change and help to -- to get a chance to so they could realize their dreams and have a life of their own.

BLITZER: You want to be an inspiration to a lot of young people.

COMBS: I try my best. I think that -- I think that's important. I won't shy away from trying my best to be a role model. And one of my ways that I try to be a role model is by being real and being true and being honest, and you know, living my life the best way I can and doing the best I can on a day to day basis.

BLITZER: Do you want to go into politics?

COMBS: No, not at all.

BLITZER: Why?

COMBS: I mean, politics to me is -- there's a lot of lies in politics, a lot of deception. What you're hearing isn't what I think somebody can guarantee they could do. I would have to say, I'd probably be more interested in being a revolutionary.

BLITZER: What does that mean?

COMBS: Somebody that's, you know, making a change, forcing a change, you know, exposing -- exposing the lies and forcing a change and overturning the liars, you know?

(CROSSTALK) BLITZER: How do you go about doing that?

COMBS: I would also have to say -- I would also have to say I would, you know -- I would want to be an activist, you know, before I would want to be a politician.

BLITZER: So you -- you are an activist to a certain degree.

COMBS: Yes.

BLITZER: Because you supported Al Sharpton.

COMBS: I support the -- you know, overturning the Rockefeller Law, which should be overturned in New York state.

BLITZER: What's that?

COMBS: You know, this is the law that we have where you have people that are jailed for drug related crimes. And it could be their first offense, and they could go away for life for a minimal, you know, minimal -- having minimal drugs on them in their possession.

So you have a mother and maybe she had, you know, ten vials of crack on her. And she stays in, you know, up to 25 years to life.

And this was something that was supposed to deter, you know, drug kingpins. And you know, it just didn't work. And it's really just affected the black community, the Latino community and put a lot of mothers and fathers and daughters and sons away for a long time, people that never -- made their first mistake.

And so, you know, I'm an activist on that.

(END VIDEOTAPE)

O'BRIEN: Getting involved in the upcoming election. Find out if Sean "P. Diddy" Combs will actively support a campaign for a presidential candidate. Wolf's interview with the music mogul continues after a break.

(COMMERCIAL BREAK)

O'BRIEN: Earlier we asked: Which artist or group received the first ever Grammy Award in the rap music genre? The answer, D.J. Jazzy Jeff and the Fresh Prince.

(BEGIN VIDEO CLIP)

WILL SMITH, SINGER (singing): Parents just don't understand.

(END VIDEO CLIP)

O'BRIEN: In 1989, the duo won in the best rap performance category for "Parents Just Don't Understand." That year, the award show didn't differentiate between rap solo artist and group. Now, before the break, we brought you the first part of Wolf Blitzer's interview with Sean Combs. At one point, he talked about his interest in politics. As the interview continued, Wolf asked him about the presidential race.

(BEGIN VIDEOTAPE)

BLITZER: Do you want to get involved in the presidential campaign this year? You support Kerry, or you support Bush?

COMBS: I'm looking into it, you know. I'm -- I definitely -- you know, I'm looking towards supporting Kerry. You know, some...

BLITZER: There have been some reports you're going to work with Bill Clinton, and you're going to try to generate some -- get some young people registered.

COMBS: I think -- I think that it's very important. I think that it's very important that young people get involved in this election. I think young people who could decide who is in the White House...

BLITZER: Tell me what...

COMBS: But I have to be honest. I'm not just going to go and do it because -- because Bill Clinton called me or the president of the Democratic Party called me.

BLITZER: Did Bill Clinton call you?

COMBS: I have -- I've been invited by the Democratic Party and various people in the Democratic Party...

BLITZER: Terry McAuliffe, the chairman?

COMBS: ... to -- yes, to -- to be involved and -- in being helpful in this election. And it's something that I'm pondering, you know? Because if I do something, I want to do it all the way.

But to be honest, I -- it's -- Kerry and Bush, anybody running for president, I can only go on what I'm hearing them say. And you know, I hear a lot of talking around in circles, like I usually do.

It's time that we make these candidates accountable, and it's time they start talking about issues that affect urban inner city life, that affect young people, education, health care and also affect minorities.

You know, I mean -- you have people that -- I know that there are wars going on, but you have people that are dying right in our own back yards from poverty, illiteracy and just, you know, depression of not being able to make something of themselves.

And you know, I know it's the hardest job in the world to be the president, you know? So that's why I watch knocking people too much. But I feel like, you know, this president that's in office has had an ample chance.

And that's why I'm even more, you know, leery of who's going to be in the office next. No matter if it's a Republican or a Democrat, I want what's the best for all of us, for our people. I want what's the best for our kids.

And if my power as a youth leader can affect that in a positive way, and I can feel trustworthy to trust somebody that they want to deal with these issues that are important to us, and I feel like I would defend someone like Kerry.

BLITZER: Have you met with Kerry?

COMBS: No, I haven't yet. I look forward -- I look forward to meeting with him, you know, if the time -- if the time arises.

BLITZER: What's the next, after the Broadway play? After the registering young people to vote? After getting involved a little bit in supporting various causes? What's your next big challenge that you're looking forward to?

COMBS: My own goal and challenge with me is to become the best person that I could become and make sure that, due to my success and power, that -- that I don't get pulled in ways that I don't keep focused on what I am.

I'm a child of God. I give all glory to God. And I have a responsibility to be the best child of God that I could be. And I have to stay focused on that. Because the money and the power and the sales aren't going to get me into heaven at the end of the day. And it won't have as much of an impact as me having a positive impact on somebody's life, especially my kids and my family.

BLITZER: Sean, good luck.

COMBS: All right. Thank you. Thank you very much.

(END VIDEOTAPE)

O'BRIEN: Up next, in it's off to the races. Why is this truck chasing this horse? The answer is coming up in our picture of the day.

(COMMERCIAL BREAK)

O'BRIEN: Our picture of the day comes from a San Francisco area racetrack. This is what it looked like when a horse named Deja Vu threw its rider during a workout and then ran through a gate and along a road. It kind of looks like an old Mustang commercial. Track workers eventually caught up with him. The horse needed a few stitches for superficial wounds, but he should be Deja Vu all over again in about two months.

A reminder, you can always catch Wolf Blitzer at this time Monday through Friday. I'm Miles O'Brien. Thanks for being with us on WOLF BLITZER REPORTS. Up next, "LOU DOBBS TONIGHT."

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