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CNN Wolf Blitzer Reports

Should U.S. Military Give a Harsh Response to Atrocity in Fallujah? Boxer Is Killed During Match

Aired April 01, 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)
DARYN KAGAN, CNN ANCHOR (voice-over): Happening right now. The U.S. military sends a strong signal to the hostile Iraqis who took part in a massacre. Stand by for hard news on WOLF BLITZER REPORTS.

Atrocity aftermath.

Shock, rage and vows of revenge.

BRIG. GEN. MARK KIMMITT, U.S. ARMY: We will hunt down the criminals. We will kill them or we will capture them and we will pacify Fallujah.

KAGAN: But Americans are attacked again. Is the mission impossible?

SEN. JOHN MCCAIN (R), ARIZONA: Democracy is a messy business but I think we can and will succeed -- we must succeed and I think we will over time.

KAGAN: Wolf speaks with Senator John McCain.

Terror handbook, a chilling discovery. Do al Qaeda and its allies have a blueprint for world domination? A CNN exclusive.

Caught on tape. Scenes from a California youth facility. Are officers taking correction too far?

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, April 1, 2004.

(END VIDEOTAPE)

KAGAN: Hello. I'm Daryn Kagan at CNN center in Atlanta. Wolf has the day off today. Americans are still reeling from yesterday's attack on civilian contractors. The graphic pictures and the gruesome accounts how a gleeful mob mutilated and displayed the bodies. Now the U.S. military is vowing to hunt down those behind the outrage in Fallujah. We begin with our CNN senior Pentagon correspondent Jamie McIntyre.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Daryn, the murder and mutilation of four American contractors in Fallujah yesterday has prompted the U.S. military to change its strategy. It will no longer keep its forces on the outskirts of the city while relying on poorly trained and poorly equipped Iraqi police to provide security. Those marines, about 3,000 of them are being told they will retake the city.

(BEGIN VIDEO CLIP)

KIMMITT: Will there are a fight? That's up to the belligerents, that's up to the insurgents. Because the coalition forces will respond, they'll be in that city. It will be at a time and a place of our choosing. It will be methodical. It will be precise, and it will be overwhelming.

(END VIDEO CLIP)

MCINTYRE: Pentagon sources say planning is underway for, quote, a major campaign to pacify Fallujah. Beginning in the next few days, marines will move in to hunt for enemy fighters and pressure city officials to finger those responsible for recent attacks. They'll also be looking for any of the Iraqis who can be identified from this kind of television footage that shows the angry mob celebrating after the recent deaths.

They'd like to question those people about what they know about the people behind the attacks. But the new strategy is also going to try to win the hearts and minds of those in Fallujah by pumping more money into schools and health clinics. It's dangerous and difficult double job, one to hunt down the insurgents, at the same time, trying to win over the local populace with acts of kindness. It is, however, a mission befitting the official slogan of the Marine, 1st. Marine Division, which is, "no better friend, no worse enemy" -- Daryn.

KAGAN: Jamie McIntyre with the latest from the Pentagon. Thank you, Jamie.

U.S. authorities are determined to go after the killers and gain control of Fallujah, Iraqi insurgents seem just as determined to press on with their attacks. Jim Clancy reports on the aftermath of the atrocity. We do have to caution you there is a graphic nature of some of the pictures you are about to see.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN CORRESPONDENT (voice-over): A day after Iraqi insurgents ambushed and killed nine American soldiers and civilians in separate attacks around Fallujah, U.S. officials vowed to stay the course in Iraq and pursue those responsible. The incident, involving four civilian contractors, whose charred bodies were dismembered and put on display by a crowd of jubilant Iraqis caused the most concern. Some Iraqis were shocked by the violence. Others said Fallujah harbored some of the most ardent supporters of Saddam Hussein in all of Iraq, and that no one should be surprised they treated American civilians Wednesday just like they treated Iraqis for decades. But most appeared to excuse the mob scene in the streets as a reaction to the continuing U.S. occupation. U.S. officials rejected that notion. PAUL BREMER, U.S. CIVILIAN ADMINISTRATOR: The acts we have seen were despicable and inexcusable. They violate the tenets of all religions including Islam as well as the foundations of civilized society. Their deaths will not go unpunished.

CLANCY: General Mark Kimmitt was more direct promising to send in the marines.

KIMMITT: They're coming back, they are going to hunt down the people responsible for the bestial act. It is up to the people, the small number of people in Fallujah to determine if they want to do it with a fight or without a fight.

CLANCY: But the fight continued in northwest Baghdad. Two roadside bombs took aim at a U.S. supply convoy, including fuel trucks. The first roadside bomb struck a civilian vehicle wounding the Iraqi driver who was evacuated for medical treatment. A convoy of fuel trucks were the suspected target. And U.S. troops prepare to search using a robot for any other improvised explosive devices.

That is when a second explosion rocked the scene, dust, debris and smoke could be seen rising from its location. The blast hit the middle of the convoy, shattering windscreens with shrapnel. U.S. troops took up defensive positions along their vehicles taking aim at suspected gunmen on nearby rooftops. It was believed both roadside bombs were detonated by remote control. Meantime medics treated one of the drivers of a fuel truck for head wounds, wrapped in bandages that covered most of his face, it was unclear as he was evacuated whether this civilian contract worker was an Iraqi or foreign national working for the U.S.

(END VIDEOTAPE)

KAGAN: That was our Jim Clancy in Baghdad. We have a chance now to talk more about the recent deadly attacks on Americans in Iraq, and who might be behind them and the likely U.S. response. For that we turn to world affairs analyst and former defense secretary William Cohen joining us in Washington. Mr. Secretary, thanks for being with us.

I'm sure you heard the general earlier say that this will not go unpunished, that they are going to go after the people who did this. But whom exactly do you go after?

WILLIAM COHEN, FMR. DEFENSE SECRETARY: Well, they're going to spend a good deal of time trying to track down those identified on camera. But individuals that might lead them to those who perpetrated the act, there certainly were a number of witness, whether they can persuade them to help in the search for the perpetrators of the heinous act remains to be seen. But certainly there is every effort made to do that.

KAGAN: It seems like this is a two-part attack here. You have the original men who did the attack. Do you go after them with the same zeal that you go after the people who then took the bodies out of car and drug (ph) those bodies across the city. COHEN: The question becomes whether they are the Iraqi people who are filled with hatred toward the United States, or whether they're in fact supporting, giving some sort of aid, comfort and support to the individuals who carry out the bombing attacks and the basic guerrilla activities. I think that great restraint frankly is being exercised by the American soldiers, and so in addition to the looking at these horrific films, we have to praise our soldiers who are exercising restraint in the face of great acts of barbarity. But I think there will be really intensive effort under way to track down as many of those who are still plotting to blow our forces up as much as they can.

KAGAN: Do you think that restraint would completely correct yesterday, 4,000 marines, a number of police stations nearby, not the type of response that you might have expected. And indeed you heard the general today say it's not going to be like that. They're going in stronger and they're going to go in with more force?

COHEN: They're going to go in stronger. But again, what distinguishes our troops from those conducting the attacks is we are not barbarians. The United States troops are well disciplined. They will go after the individuals and the perpetrators but to engage in a wholesale attack upon those civilians who were there, certainly would not solve any problem that we have right now, and might create even more anger and hatred directed toward the Americans. It's a balance that has to be struck, we will go in with greater force but it will be focused on the individuals plotting to attack the soldiers rather than the civilians who are taking great joy at the moment and jubilation at what has been done.

KAGAN: Mr. Secretary, that does seem to point out exactly one of the toughest parts of this battle. You do want to go in, you do want to show force and yet, that doesn't exactly look like you're going to convert hearts and minds. If you see the reaction of the aftermath of that attack, that is even a bigger battle than going after the insurgents.

COHEN: The challenge is going to be how do you persuade the Iraqi citizens that their future lies in support for the coalition forces, that they have to understand that those seeking to bring about this kind of destruction are really destroying their opportunity for a future. And so winning the hearts and minds requires a balance on the part of the military leadership and civilian leadership to make sure that we don't act in a way that only creates more hatred directed toward the coalition forces but rather persuades them that we are there for the long haul, that they're not going to drive the forces out by engaging this type of activity, and so that they should be on the side of the forces seeking to bring about a stabilized and hopefully economically prosperous Iraq for the future.

Otherwise their future is going to be very dim indeed.

KAGAN: In the last minute that we have, I want to ask you about the 9/11 Commission. I know Wolf has had a chance to talk to you about this on this program. Since then, we've learned that national security adviser Condoleezza Rice is going to testify in public, in person. In fact, we're finding out it's going to be one week from today. Do you think it's going to help a lot with the commission's work?

COHEN: I think the commission will find it very helpful. There are some rather, I guess, obvious inconsistencies in terms of what has been said in the past. They will have to -- not necessarily by Condi Rice, but certainly from Mr. Clarke and Rice and different interpretations of what has been seen and observed.

I think it's going to be important for them to resolve the issues. It's important for the administration also to be front and center publicly, under oath, as everyone who testifies before a commission should be.

KAGAN: Including the president and vice president?

COHEN: Well, I think, frankly, whether it's done in public or not, I think that anyone who testifies before a commission ought to consider themselves under oath. No president or vice president should consider that they're less than truthful or under an obligation to tell the full truth, even though they're not sworn in public to do so.

KAGAN: Former defense secretary William Cohen. Sir, thank you for your time today. Appreciate it.

And now it's your turn to weigh in on our important story. Our Web question on this day is this, "is it U.S. right to impose an overwhelming response to the killings of 4 Americans in Fallujah?" You can vote right now, cnn.com/wolf. We'll have the results later in this broadcast.

And while you're there, we'd like to hear directly you from. Send us your comments, any time, we just might read them, and some of them at end of this program on each day.

Violence in Iraq and outrage following yesterday's gruesome attacks.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, (R) ARIZONA: We have to make sure that these kinds of images do not erode either Iraqi national will or American national will, because we cannot afford to lose.

(END VIDEO CLIP)

KAGAN: We have more from Wolf's interview with Senator John McCain, what the U.S. must do to accomplish its mission.

Terror plans, al Qaeda's blueprint for global domination?

And disturbing images caught on tape, do the youth counselors in this California correctional facility go too far?

(COMMERCIAL BREAK) KAGAN: Indonesia authorities raided a terror state house and found what's being described as a blue print to take over the world. CNN has obtained an exclusive copy of this confidential and secret document. Our Jakarta bureau chief, Maria Ressa, shows us the chilling details in this exclusive report.

(BEGIN VIDEOTAPE)

MARIA RESSA, CNN CORRESPONDENT (on camera): Wolf, this is a unique document for the first time gives the reason why al Qaeda has franchised terror. There have been 30 or so al Qaeda training manuals that have been discovered around the world, they've been widely distributed and have focused on the nuts and bolts of terrorism, acts of terror, how to make a bomb, carry out an assassination attempt.

(voice-over): This document discovered in Indonesia is unique because it has a much broader perspective, call it an ideological blueprint for how to conquer the world for global domination. It's written for al Qaeda's arm in Southeast Asia, the Jemma Islamiya or JI. The group which has carried out 2 al Qaeda funded attacks here in Indonesia since 9/11.

The group document is written in a combination of Arabic and Indonesian, it outlines 2 divisions of JI: administrative and an operations arm which carries out terrorist attacks, both governed by a charter and a very well-defined leadership structure this.

This document also talks about how global domination can be possible. It talks about three different stages. First a molding, the individual, then the society, and then finally the world in order to restore the Islamic Khalifa. This is Maria Ressa, CNN, Jakarta.

(END VIDEOTAPE)

KAGAN: And now to Britain, where authorities there investigating a possible terrorist link outside of the country. It follows this week's arrest of a young man in Ottawa and the arrest of several men of Pakistani descent in and around London. Officials declined comment. Documents alleged the Canadian man has facilitated a terrorist activity in both countries since since November of last year. And his father was arrested in Saudi Arabia at the request of the Canadian government.

An al Qaeda update, more than two years into the war on terror, what has the impact been on the world's most feared organization?

Four civilians killed in Fallujah, all employees of 1 private U.S. company. We'll take a closer look at firm, its workers and their dangerous mission.

Plus, President Bush signs a bill named after Laci Peterson. Why critics say it could undermine abortion rights.

(COMMERCIAL BREAK)

KAGAN: As we mentioned, Wolf is off today. Before he left town, he had a chance to sit down with Senator John McCain who, of course, is a member of the Senate Armed Services Committee and a Vietnam veteran. The topic, what took place in Fallujah. Also, what can be done to make Iraq a safer place. Here's Wolf and John McCain.

(BEGIN VIDEOTAPE)

WOLF BLITZER, HOST: Senator McCain, thank you for joining us. These images of Americans' bodies being dragged through the streets of Fallujah, who goes through your mind when you see this?

SEN. JOHN MCCAIN (R), ARIZONA: Sorrow, outrage, anger, and a belief that we must make sure that Iraq does not fall into the hands of people like these who will do that to their own people. As we know, they mounted these attacks against Iraqi citizens as well as American citizens.

BLITZER: But what was more disturbing, perhaps, were the literally scores of people we saw cheering, screaming, they were thrilled. Delighted by the spectacle. These were Iraqis in the so- called Sunni Triangle. Does that suggest, as some critics of the war are suggesting, the U.S. perhaps bit off more than it can chew?

MCCAIN: I don't believe so, Wolf. As you may know, I called for additional troops there a year and a half ago. The fact is that this is the most volatile and difficult part of Iraq, northern Iraq is largely quiet. Southern Iraq, we've made significant progress in most areas. The so-called Sunni Triangle is still the toughest place, and yes, there's a lot of people that still hate Americans, but I would argue that Iraq is a heck of a lot better off today than it was when Saddam Hussein was in power.

BLITZER: I certainly remember your suggestion that the U.S. beef up its military presence in Iraq. Why didn't they pay attention to you, the military, on the ground, they continue to insist they have enough personnel?

MCCAIN: A lot of the people on the ground insisted to me that they didn't have enough at that time. But right now, in this particular situation, we've got to keep our resolve, we've got to stay the course. We have to make sure that these kinds of images do not erode either Iraqi national will or American national will because we cannot afford to lose, and we need do what's necessary. And I believe that we still will prevail. It's tough.

BLITZER: Are you concerned, though, that these images could have a negative impact here on the homefront in demoralizing Americans, just as what happened in Mogadishu and Somalia, that American -- after that Blackhawk went down, was dragged through the streets there?

MCCAIN: There's no doubt, Wolf, that this has a gripping effect on all Americans. It's a terrible, horrifying thing to see. I hope it has the effect of strengthening our resolve. We could leave Somalia and unfortunately, we had to, and it's still a chaotic terrible situation. We cannot leave Iraq. And the fact that these people have been attacking civilians rather than military, in my view, means that we're doing better militarily. Look, I'm not digging for the pony here. This is a terrible situation. But we can and will show resolve, and we'll show these people that we'll bring democracy and freedom to Iraq. It will be flawed, and it will be difficult, but we must prevail.

BLITZER: So let's talk about militarily and politically. Militarily, what must the U.S. do right now?

MCCAIN: Well, I think we obviously have to concentrate more effort in the so-called Sunni Triangle. It's hard for me to be a tactician. I, again, would repeat that in many parts of the country things are much better. For example, oil exports are now higher than pre-war levels. There's a lot of signs of progress, but we probably have to do a lot more in the Sunni Triangle area, militarily and recognize that we're going to be in Iraq militarily for a long time. I've said that on this program for a long time, too.

BLITZER: Militarily, the war itself, the four, five weeks of the actual invasion, a huge success, a brilliant military campaign. The post-war planning, by almost all accounts leaves something to be desired. How frustrated are you that apparently the post-war planning wasn't as thoroughly thought out as it should have been?

MCCAIN: I'm disappointed, of course, but the reason why we avoid conflicts is because they are unpredictable, things happens. In the Korean war, we never anticipated that the Chinese would come down and inflict thousands and thousands of additional American casualties. Things don't always go according to plan. Yes, we should find out what went wrong and hold anyone responsible. I would argue that our progress has been slow but steady and absolutely necessary.

BLITZER: Politically, June 30, there's supposed to be a handover to the Iraqis -- Iraqi sovereignty. Ambassador Paul Bremer, the civilian administrator, is supposed to leave July 1. This isn't a very ambitious timetable. Is Iraq ready for this?

MCCAIN: I think in some respects you could argue they'll never be ready. But there's nothing like giving people power and responsibility to have them exercise it. There will be great difficulties. The United States will be there militarily. Maybe not in the street but certainly in bases where they can come and help restore order. There will be enormous difficulties, ethnically, religious and other ways, but I think that we will have a functioning democracy in Iraq. I truly believe that, only under very difficult circumstances.

BLITZER: When you say there will be a functioning democracy in Iraq, are we talking a year from now? Five years from now? Ten years from now? What kind of timetable are you looking at?

MCCAIN: I'm looking at a long-term gradual improvement. The Federal Republic of Germany is still spending about $3 billion a year on what used to be East Germany trying to bring them, integrating them into the Federal Republic of Germany. Democracy is a messy business, but I think that we can and -- we must succeed, and I think we will over time. Under very difficult circumstances. BLITZER: How important will the eventual war crimes trials of Saddam Hussein and his other Ba'athist party leaders, once those get started by the Iraqis with U.S. and outside assistance, how important will that be in this entire process?

MCCAIN: I'd like to see that trial start as soon as possible, because we need to be reminded of the absolute brutality of this incredible despot. And it will affirm again that what we have done is for the betterment of the Iraqi people.

BLITZER: Senator McCain, what do you say to those critics who argue that the whole Iraq war was simply a distraction, it distracted the U.S. from the real national security threat, the war on terror, Osama bin Laden, and al Qaeda?

MCCAIN: I'd say, first of all, the facts on the ground are we went to Afghanistan and we prevailed there. Second, Saddam Hussein had weapons of mass destruction, he used weapons of mass destruction, and there's no doubt in my mind, if he were still in power, he'd be still trying to acquire weapons of mass destruction. The world and Iraq is better off in my view.

BLITZER: Do you think they might yet find WMD in Iraq someday?

MCCAIN: I think it's certainly possible, it becomes less likely every day, but certainly I will hold out hope. But I'm not real optimistic.

BLITZER: As you know, the critics argue that there's a finite number of U.S. soldiers, finite number of special operations forces, Arabic-speaking personnel, and that you either use them in Iraq or Afghanistan but there's probably not enough to do a thorough job in both places.

MCCAIN: I think we have sufficient troops to do the job in both places. It's very difficult but I believe we can.

BLITZER: Let's briefly talk about politics for a moment, domestic politics, this being an election year. Your good friend John Kerry is running for president. The vice president and many of the Republicans, the Bush/Cheney team argue he's not strong on national security, but you disagree with them on that. Tell our viewers why.

MCCAIN: I've been through this before, Wolf. Look, I'm just not going to attack a friend of mine. He has to defend his own voting record. I disagreed with John Kerry on the vote to fund Iraq, and that was a disagreement we had. But I'm just not going attack a friend.

BLITZER: And clarify, once and for all for our viewers, I know you've been asked this a million times but I'll ask it again. The vice presidential running mate slot. You're asked all the time. Are you categorically telling us now you're not interested?

MCCAIN: I'm categorically telling you that, Wolf.

BLITZER: You're not going to run with John Kerry?

MCCAIN: I am not.

BLITZER: But will you actively go out and campaign for the president?

MCCAIN: I am already. Yes, I'm co-chairman of his campaign in Arizona. I've already campaigned for the president in New Hampshire, and I will. Now I'm on this commission, he's asked me to serve on this commission on WMD, that, of course, will curtail some of my activities, but I am supporting George Bush for re-election of the presidency of the United States. And Dick Cheney as vice president.

BLITZER: On that note, Senator McCain, I'll let you go back to work. Thanks very much for joining us.

MCCAIN: Thank you. Thank you, Wolf.

(END VIDEOTAPE)

KAGAN: Wolf trying to make news with Senator John McCain.

She was found alive after disappearing from her dorm room. Now authorities are looking for answers. We are standing by for a news conference in Wisconsin on any updates in the case. You'll see it live on CNN.

Plus, mortal match, a professional boxer dies after a knockout. Now we hear from his opponent.

And California collision, a fiery series of pileups causing chaos on the freeway.

(COMMERCIAL BREAK)

KAGAN: Welcome back to CNN. I'm Daryn Kagan in Atlanta. Wolf Blitzer is off today.

Let's take a look live at Madison, Wisconsin. Police there waiting to brief the media on the case of a missing college student found just yesterday. We're going to bring you that news conference live. First, though, let's take the opportunity to check the latest headlines.

Today marked 11th day of deliberations in the trial of former Tyco executive Dennis Kozlowski and Mark Swartz. The judge spoke with the jury to clarify situation facing the two men, including conspiracy and securities fraud. Both are accused of looting $600 million from the company through unauthorized bonuses, personal loans and dishonest stock sales.

The Dow Jones industrial average index will drop long time components AT&T, Eastman Kodak and International Paper. Going onto the list, Verizon, American International Group and Pfizer. The changes are the first since 1999. They take effect April 8. Experts say it's a reflection of trends in the U.S. stock market. Almost two dozen people are injured following a 2 mile vehicle pileup that closed part of Interstate 15 in Southern California for several hours. The early morning chain collision happened during a thick fog situation. Investigators say more than 60 vehicles collided and some tractor trailers jackknifed.

President Bush signed the Unborn Victims of Violence Act, also referred to as the Laci and Connor Fetal Protection Bill. It's named for the pregnant California woman killed who was in 2002 and her unborn son. The legislation makes it a federal crime to harm a fetus during an attack on a pregnant woman.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: With this action, we widen the circle of compassion and inclusion in our society. And we reaffirm that the United States of America is building a culture of life.

(END VIDEO CLIP)

KAGAN: Critics of the measure say it will undermine abortion rights.

It is official, one week from today, President Bush's national security adviser Condoleezza Rice will appear before the commission investigating the 9/11 terror attacks. Let's go live to the White House and correspondent Suzanne Malveaux with more on Condoleezza Rice's testimony -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Daryn, it's official, all eyes will be on the testimony. We're told it's about 90 minutes in length. And as you know this comes after a great deal of pressure and reversal from the White House to allow her to testify publicly. Bush aides are anxious for her to make the case, the president's case, that he took these threats from al Qaeda seriously, making it a top priority.

It also comes on a day when there are excerpts from a speech that Dr. Rice was to deliver on September 11, but did not. Those excerpts leaked to the press today. It is a broad policy speech that focuses on national security. It talks about the need to protect the homeland from weapons of mass destruction. The focus, the primary focus on strengthening the missile defense system. It does not, however, mention al Qaeda or Osama bin Laden, but White House officials say that does not mean that al Qaeda or Osama bin Laden wasn't a priority for this administration.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECY: This administration doesn't measure commitment based on one speech or one conference call or one meeting. We look at the sum total of strong actions that we take.

(END VIDEO CLIP) MALVEAUX: White House officials also say just look at first foreign policy directive. The initiative from the White House was to eliminate al Qaeda. There are critics however, who say it's fairly consistent, if you look at speeches, briefings and things like that from White House officials leading up to September 11, that for the most part they were focusing on strengthening the missile defense system.

Should also let you know as well that the administration speak out very strongly against the attacks in Fallujah. We have understand that the president himself actually saw some of the disturbing pictures from yesterday, and he is resolved to bring them to justice.

(BEGIN VIDEO CLIP)

MCCLELLAN: Will not be deterred by these cowardly, hateful acts. These were despicable attacks, and this administration will continue working closely with the coalition and the international community and the Iraqi people to help the Iraqi people realize a better future built on democracy and freedom.

(END VIDEO CLIP)

MALVEAUX: Bush aides say it affects administration personally as well as the president, but also politically as well. This is a president who is running on his leadership as a wartime leader.

KAGAN: Suzanne Malveaux at the White House. Suzanne, thank you.

U.S. military officials in Iraq are promising an overwhelming response to the attack yesterday that killed four Americans in Fallujah. The Americans were employed by a U.S. company called Blackwater Security Consulting. One of the many private contractors worked in Iraq.

(BEGIN VIDEOTAPE)

KAGAN (voice-over): If you saw these men on the streets of Iraq, you might mistake them for U.S. troops. You'd be wrong, but you wouldn't be that far off. Blackwater Security was founded in part to take advantage of business opportunities created by the downsizing of the U.S. military.

It's based at a 6,000 acre site in rural North Carolina, a campus the company calls the most comprehensive private tactical training facility in the U.S. President Gary Jackson and two other Blackwater leaders are former Navy SEALs and their company hires veterans to provide security for clients around the world.

KEN ROBINSON, CNN NATL. SECURITY ANALYST: These are typically former special operations community personnel who are highly trained in the use of deadly force, also in surveillance detection, and in avoidance, risk avoidance.

KAGAN: The Blackwater employees attacked in Iraq were providing security for U.S. government food deliveries. But the company's role there is much more extensive. Its duties include, providing protection for Paul Bremer, the U.S. civil administrator in Iraq.

Blackwater is just one of a growing number of private contractors hiring veterans to do jobs that previously were assigned to the regular military, including the protection of personnel working for private companies and nongovernment organizations.

ROBINSON: They provide very focused security for detailing out how a protectee's day occurs, from the beginning of the morning from the time they tuck that person back into bed at night, or whether that be an NGO trying to conduct operations providing food or water or support to the population.

KAGAN: Military analysts say the arrangement allows regular troops to concentrate on fighting, but worry that the lucrative pay offered by the private contractors, often more than $100,000 a year, is depleting the ranks of the special forces.

On the Blackwater Web site today, a somber statement saying that yesterday's events demonstrate, quote, "the extraordinary conditions under which we voluntarily work to bring freedom and democracy to the Iraqi people." The statement goes onto say, "while we feel sadness for our fallen colleagues, we also feel pride and satisfaction that we're making a difference for the people of Iraq."

(END VIDEOTAPE)

KAGAN: And from a private security government to the U.S. government, looking at the question of how fragmented is al Qaeda and how much progress is the U.S. seeing in its war against terror. Our National security correspondent David Ensor brings us an update from Washington, D.C. -- David.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Well, Daryn, first the good news from Cofer Black, the State Department's counterterrorism coordinator whose a former senior CIA official. The good news, he says, is that since 9/11 al Qaeda has been dealt a body blow by the U.S. and its allies.

(BEGIN VIDEO CLIP)

COFER BLACK, COUNTERTERRORISM COORDINATOR: The al Qaeda organization that we engaged before 9/11 and at 9/11 has been put under catastrophic stress. 70 percent of their leadership has been arrested, detained or killed. The majority of the rest them essentially are primarily defensive.

(END VIDEO CLIP)

ENSOR: Black says, with much of the A-team of al Qaeda dead or in jail, less experienced terrorists are now running the attacks. The classic example, he says, was the November bombings in Saudi Arabia that killed mostly Muslims and have been, Black says, a public relations disaster for the group. While al Qaeda has been gravely wounded, according to Black, it is, quote, "patient, resourceful and flexible, able to draw on the global support of Jihadists around the world." Black also worries that al Qaeda's extreme ideology is spreading well beyond the Middle East. The group, he told Congress, is finding ways to harness local terrorist groups in its more global anti-western cause -- Daryn.

KAGAN: David Ensor in Washington.

Barricades surrounding many structures in the nation's Capitol trying to thwart a possible terrorist attack. Some are reviving a proposal to put a fence around the U.S. Capitol and office buildings. Critics say the proposal goes too far, adding that a fence would not protect against an attack from a plane or a shoulder-fired missile.

We are standing by once again for a news conference at Madison, Wisconsin, a college student found alive, but what happened to her in the four days that she was missing? An update just ahead.

Also youth inmate beating caught on tape. Did the guards go too far? We'll go live to California for more on that story.

And a fatal fight, a round in a ring leaves a professional boxer dead, his opponent shaken.

Plus this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Want to shop till I drop.

(END VIDEO CLIP)

KAGAN: You can laugh but she now has the money to do it. Meet the couple who won the second largest Lottery jackpot in history. That's ahead, right now let's go live to Madison, Wisconsin for the latest.

(NEWS CONFERENCE IN PROGRESS)

UNIDENTIFIED MALE: ...We will not be taking questions after that. So I will turn it over to Chief Wray for a brief statement.

Well, good evening. Make a brief statement and that will be it. I will not be taking questions. On March 27, Audrey Seiler reported that she was abducted by knifepoint from her apartment. After extensive searching by hundreds of volunteers and numerous law enforcement officials Audrey was located. Audrey was able to provide a description of a suspect to our department prior to being transported to St. Mary's Hospital where she was evaluated and eventually released.

Madison police officials had an opportunity to speak with Audrey regarding the description of the suspect and began searching the area where she was last seen. After several hours of intensive police operations, the area was searched and no suspect was located. Currently, the Madison police department is investigating the reported sequence of events from Audrey and other witness statements. Like in any other major investigation, there may be inconsistencies. But we are continuing forward with this investigation. Let me repeat that. Like in any other major investigation, there may be inconsistencies, but we are continuing forward with this investigation. It is not our role or the role of police, the police department to speculate on the outcome of an investigation until it has been completed. The Madison police department will continue to investigate all reports made to our department, in an attempt to identify the facts involving the reported abduction. We continue to urge people to continue taking normal safety precautions such as locking your doors, utilizing safe rides, never walking alone. The Seiler family is doing well as our investigation continues to progress. We continue to urge anyone with information about this incident to contact Crimestoppers. We also have a composite that we'd like to share.

UNIDENTIFIED MALE: I'll make it available at the doorway as you exit, it will be there.

UNIDENTIFIED MALE: Thank you.

KAGAN: All right. Listening to a brief statement by the Madison, Wisconsin police department bringing an update on the situation involving Audrey Seiler, she's a 20-year-old University of Wisconsin college student who disappeared last Saturday morning and then was found Wednesday. You heard the police officer talk about how in any investigation there are some inconsistencies, they are going forward with their investigation of what might have happened to Audrey Seiler.

We want to bring in Mike Brooks, who helps us on these police matters. That was different. That was a very different kind of news conference. We've listened to hundreds of them here on CNN. When he first came out and made that statement, it sounded like he was going to say we're calling off the whole thing.

MIKE BROOKS, CNN CENTER: It did. He said on March 27, she reported that she was abducted at knifepoint. But again, law enforcement can only go on the facts they're given by witnesses and by the victim. We go back to February 1, she was also the victim of an assault back then that's still an open case...

KAGAN: An alleged victim. Even that they said -- that was another one that didn't have any witnesses.

BROOKS: Exactly. And so law enforcement can only go on the information it had. My sources out there, the day before yesterday, when they said they had basically absolutely nothing. But I've said all along...

KAGAN: Let me just interrupt here and hold that thought. We're getting sketches of what they're saying is the suspect. This is a composite drawing. Today police said that they talked for many hours with Audrey Seiler, that this is the description she gave of her alleged abductor, as a white male, late 20s, early 30s. About six feet tall, last seen wearing a black sweatshirt, black hat and jeans. As we take a look at that, and again, sorry for the interruption, Mike, continue with your thought. BROOKS: I said yesterday, while they were searching this area that investigators were going all on theories of whether she was the victim of a random act of violence. Was it a planned kidnapping or she left of her own accord. They're still looking at all the facts and all the evidence to see if one of the theories played out. They went back to the scene today, they said early on today, they went back to the scene looking for evidence in the area they were searching for yesterday. We don't know if they found any evidence there as of yet.

That will also be very, very telling in their investigation to say whether or not she was candid in her interviews, and her initial interview and the lengthy interviews that they've conducted. And again, going back to the witnesses, we don't know what the witnesses have said, but early on, I thought it was very strange yesterday that all of a sudden, boom, they found her, searched this area. But as we saw, the number of law enforcement that were in the area yesterday searching. Law enforcement was taking a response they thought they had to because the information was given to them by the victim and by witnesses.

KAGAN: What about the surveillance video that shows her leaving by herself early Saturday morning.

BROOKS: It doesn't show much. I've looked at that a couple of times and you really can't make out unless you use some enhancements that law enforcement can do. It really doesn't show much by looking in the background of that. A lot of times investigators will look at video but they'll also look in the background to see if there's a car there, there wasn't much to go on that I could see, investigators are not giving up much information on what they gleaned from that video.

KAGAN: All right, Mike Brooks, thank you for that. Once again, police in Madison, Wisconsin saying that their investigation will go on, on exactly what happened to Audrey Seiler, the four days she was missing over last week.

Much more news ahead, including some very disturbing video from a California correctional facility for teenagers. Was a beating that one of those teenagers took warranted? We'll talk about that just ahead.

(COMMERCIAL BREAK)

KAGAN: Juvenile justice under fire in California. At the center of the controversy surveillance tape showing two young men being beaten by guards at a state facility. Our Rusty Dornin is live in Sacramento with a look at video -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Daryn, we've known about this for weeks. There's been a big controversy over it. Although the state was not going to release it. Things really heated up when this internal investigation was released that said what was on that tape showed that the staff used excessive force on two of the young inmates. Now, what you see on the tape is a brawl breaking out in the center of this youth correctional facility in Stockton, California, allegedly after two of the young inmates attacked the counselors. In the foreground, one of the counselors punched the young inmate on the ground subdued 28 times with both fist. In the background, one of the of the other inmates is kicked by another counselor.

Now as I said, there was an internal investigation, they said the staff used excessive force, and there was a cover-up among the witnesses who did not come forward or gave statements that were really inconsistent with what was on the videotape. They handed over statements to the district attorney's office locally, but they refused to prosecute or file charges. They said there just wasn't enough evidence. Now it's been turned over to the state attorney general, he talked to reporters this afternoon. He says, look, he said you didn't see what was on the tape what happened before or what happened afterward. There is some evidence that we don't know about. But he did admit that one inmate was subdued and there was excessive force used. But he just kept saying there was other evident involved. He wouldn't say anything else. He said they are looking at it, and they'll discuss whether they'll file charges either later this week or sometime next week -- Daryn.

KAGAN: Rusty Dornin, tracking that for us from Sacramento.

A fatal knockout inside the ring...

UNIDENTIFIED MALE: In the back of your mind, you don't think it's going happen to you. You know, but unfortunately it did happen to one of us.

KAGAN: Hundreds of people looking on as one boxer loses much more than a fight.

(COMMERCIAL BREAK)

KAGAN: A North Carolina boxer says he's hanging up his gloves for now after a weekend bout took a tragic turn.

(BEGIN VIDEOTAPE)

KAGAN (voice-over): It was a typical boxing match, in the striped trunk, 29-year-old David Richtman (ph), an intensive care nurse boxing professionally for only nine months. His opponent, 30- year-old Earl Ladson, a church deacon and pro boxer with two years under his belt. Observers say Richtman was winning this fight Savannah, Georgia last Saturday. Because of the grim nature we're about to describe, we're not going to show the video from the fourth round. That though was when Ladson landed a series of blows to Richtman's face resulting in a knock out. Richtman never regained consciousness and later died.

EARL LADSON, BOXER: We here today to set record straight.

KAGAN: At a news conference Thursday, he apologized once again.

LADSON: We both fighter, we had the same intention to win. We both knew at time that somebody could be killed going into the ring because that's part of the sport. But you don't expect that nobody's going to be killed. KAGAN: Ladson says he's waiting for the autopsy results which he says could show Richtman died as a result of a previous injury, aggravated during their fight. He also says he's spoken to Richtman's widow.

LADSON: We had a good conversation, and I spoke with her, and she's in good -- she in a good condition right now. She said that she wish that that was somewhat kind of way possible that I could come down and speak at his funeral.

KAGAN: Ladson says the accident has left him too shaken to go into the ring any time soon.

LADSON: I can't say I just quit, I know as of now, I am taking time off, and -- because right now my confidence is just not there to go right back in and just hit a man.

(END VIDEOTAPE)

KAGAN: An autopsy on Richtman is planned. No word on when we can expect results.

The results of our web "Question of the Day" when we come back.

Also words any wife would love to hear from her husband. Listen to these.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Heard him say 1, 13, 20, 21, 30 and 24, I said sweet heart, we've got that number.

(END VIDEO CLIP)

KAGAN: Oh, yes. The winners of the second biggest jackpot in history finally come forward.

(COMMERCIAL BREAK)

KAGAN: Here's how you're weighing in on our web "Question of the Day."

Is the U.S. right to propose an "overwhelming" response to the killings of 4 Americans in Fallujah? Seventy-seven percent of you say, yes, 23 percent say, no.

Once again, a reminder, this is not a scientific poll, just a place to express some opinions.

And now to your e-mail.

Eugene writes to us, "The situation in Fallujah cannot be allowed to continue. Without an immediate military response, the enemy will continue it's attacks and gather more local support."

But Erik says this, "I completely support finding those responsible for the atrocities at Fallujah, but the last thing we need in that area is an aggressive indiscriminate military response to those atrocities. These kind of anti-terror tactics have proven only to escalate the conflicts."

Mega Million winners come forward and that is our "Picture of the Day." J.R. Triplett and his wife Peggy are taking home the second largest jackpot in world history. $239 million. Here is what they had to say about that.

J.R. TRIPLETT, LOTTERY WINNER: I'm going to spend it somewheres. I don't know, probably in (UNINTELLIGIBLE). I'm going to spend it wise I'll put it that way.

PEGGY TRIPLETT, LOTTERY WINNER: I'm going to shop until I drop.

(END VIDEO CLIP)

KAGAN: Congratulations to them.

That's it for me. I'm Daryn Kagan. See you tomorrow morning. Wolf is right back here tomorrow.

"LOU DOBBS" is next.

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


Aired April 1, 2004 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
DARYN KAGAN, CNN ANCHOR (voice-over): Happening right now. The U.S. military sends a strong signal to the hostile Iraqis who took part in a massacre. Stand by for hard news on WOLF BLITZER REPORTS.

Atrocity aftermath.

Shock, rage and vows of revenge.

BRIG. GEN. MARK KIMMITT, U.S. ARMY: We will hunt down the criminals. We will kill them or we will capture them and we will pacify Fallujah.

KAGAN: But Americans are attacked again. Is the mission impossible?

SEN. JOHN MCCAIN (R), ARIZONA: Democracy is a messy business but I think we can and will succeed -- we must succeed and I think we will over time.

KAGAN: Wolf speaks with Senator John McCain.

Terror handbook, a chilling discovery. Do al Qaeda and its allies have a blueprint for world domination? A CNN exclusive.

Caught on tape. Scenes from a California youth facility. Are officers taking correction too far?

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, April 1, 2004.

(END VIDEOTAPE)

KAGAN: Hello. I'm Daryn Kagan at CNN center in Atlanta. Wolf has the day off today. Americans are still reeling from yesterday's attack on civilian contractors. The graphic pictures and the gruesome accounts how a gleeful mob mutilated and displayed the bodies. Now the U.S. military is vowing to hunt down those behind the outrage in Fallujah. We begin with our CNN senior Pentagon correspondent Jamie McIntyre.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Daryn, the murder and mutilation of four American contractors in Fallujah yesterday has prompted the U.S. military to change its strategy. It will no longer keep its forces on the outskirts of the city while relying on poorly trained and poorly equipped Iraqi police to provide security. Those marines, about 3,000 of them are being told they will retake the city.

(BEGIN VIDEO CLIP)

KIMMITT: Will there are a fight? That's up to the belligerents, that's up to the insurgents. Because the coalition forces will respond, they'll be in that city. It will be at a time and a place of our choosing. It will be methodical. It will be precise, and it will be overwhelming.

(END VIDEO CLIP)

MCINTYRE: Pentagon sources say planning is underway for, quote, a major campaign to pacify Fallujah. Beginning in the next few days, marines will move in to hunt for enemy fighters and pressure city officials to finger those responsible for recent attacks. They'll also be looking for any of the Iraqis who can be identified from this kind of television footage that shows the angry mob celebrating after the recent deaths.

They'd like to question those people about what they know about the people behind the attacks. But the new strategy is also going to try to win the hearts and minds of those in Fallujah by pumping more money into schools and health clinics. It's dangerous and difficult double job, one to hunt down the insurgents, at the same time, trying to win over the local populace with acts of kindness. It is, however, a mission befitting the official slogan of the Marine, 1st. Marine Division, which is, "no better friend, no worse enemy" -- Daryn.

KAGAN: Jamie McIntyre with the latest from the Pentagon. Thank you, Jamie.

U.S. authorities are determined to go after the killers and gain control of Fallujah, Iraqi insurgents seem just as determined to press on with their attacks. Jim Clancy reports on the aftermath of the atrocity. We do have to caution you there is a graphic nature of some of the pictures you are about to see.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN CORRESPONDENT (voice-over): A day after Iraqi insurgents ambushed and killed nine American soldiers and civilians in separate attacks around Fallujah, U.S. officials vowed to stay the course in Iraq and pursue those responsible. The incident, involving four civilian contractors, whose charred bodies were dismembered and put on display by a crowd of jubilant Iraqis caused the most concern. Some Iraqis were shocked by the violence. Others said Fallujah harbored some of the most ardent supporters of Saddam Hussein in all of Iraq, and that no one should be surprised they treated American civilians Wednesday just like they treated Iraqis for decades. But most appeared to excuse the mob scene in the streets as a reaction to the continuing U.S. occupation. U.S. officials rejected that notion. PAUL BREMER, U.S. CIVILIAN ADMINISTRATOR: The acts we have seen were despicable and inexcusable. They violate the tenets of all religions including Islam as well as the foundations of civilized society. Their deaths will not go unpunished.

CLANCY: General Mark Kimmitt was more direct promising to send in the marines.

KIMMITT: They're coming back, they are going to hunt down the people responsible for the bestial act. It is up to the people, the small number of people in Fallujah to determine if they want to do it with a fight or without a fight.

CLANCY: But the fight continued in northwest Baghdad. Two roadside bombs took aim at a U.S. supply convoy, including fuel trucks. The first roadside bomb struck a civilian vehicle wounding the Iraqi driver who was evacuated for medical treatment. A convoy of fuel trucks were the suspected target. And U.S. troops prepare to search using a robot for any other improvised explosive devices.

That is when a second explosion rocked the scene, dust, debris and smoke could be seen rising from its location. The blast hit the middle of the convoy, shattering windscreens with shrapnel. U.S. troops took up defensive positions along their vehicles taking aim at suspected gunmen on nearby rooftops. It was believed both roadside bombs were detonated by remote control. Meantime medics treated one of the drivers of a fuel truck for head wounds, wrapped in bandages that covered most of his face, it was unclear as he was evacuated whether this civilian contract worker was an Iraqi or foreign national working for the U.S.

(END VIDEOTAPE)

KAGAN: That was our Jim Clancy in Baghdad. We have a chance now to talk more about the recent deadly attacks on Americans in Iraq, and who might be behind them and the likely U.S. response. For that we turn to world affairs analyst and former defense secretary William Cohen joining us in Washington. Mr. Secretary, thanks for being with us.

I'm sure you heard the general earlier say that this will not go unpunished, that they are going to go after the people who did this. But whom exactly do you go after?

WILLIAM COHEN, FMR. DEFENSE SECRETARY: Well, they're going to spend a good deal of time trying to track down those identified on camera. But individuals that might lead them to those who perpetrated the act, there certainly were a number of witness, whether they can persuade them to help in the search for the perpetrators of the heinous act remains to be seen. But certainly there is every effort made to do that.

KAGAN: It seems like this is a two-part attack here. You have the original men who did the attack. Do you go after them with the same zeal that you go after the people who then took the bodies out of car and drug (ph) those bodies across the city. COHEN: The question becomes whether they are the Iraqi people who are filled with hatred toward the United States, or whether they're in fact supporting, giving some sort of aid, comfort and support to the individuals who carry out the bombing attacks and the basic guerrilla activities. I think that great restraint frankly is being exercised by the American soldiers, and so in addition to the looking at these horrific films, we have to praise our soldiers who are exercising restraint in the face of great acts of barbarity. But I think there will be really intensive effort under way to track down as many of those who are still plotting to blow our forces up as much as they can.

KAGAN: Do you think that restraint would completely correct yesterday, 4,000 marines, a number of police stations nearby, not the type of response that you might have expected. And indeed you heard the general today say it's not going to be like that. They're going in stronger and they're going to go in with more force?

COHEN: They're going to go in stronger. But again, what distinguishes our troops from those conducting the attacks is we are not barbarians. The United States troops are well disciplined. They will go after the individuals and the perpetrators but to engage in a wholesale attack upon those civilians who were there, certainly would not solve any problem that we have right now, and might create even more anger and hatred directed toward the Americans. It's a balance that has to be struck, we will go in with greater force but it will be focused on the individuals plotting to attack the soldiers rather than the civilians who are taking great joy at the moment and jubilation at what has been done.

KAGAN: Mr. Secretary, that does seem to point out exactly one of the toughest parts of this battle. You do want to go in, you do want to show force and yet, that doesn't exactly look like you're going to convert hearts and minds. If you see the reaction of the aftermath of that attack, that is even a bigger battle than going after the insurgents.

COHEN: The challenge is going to be how do you persuade the Iraqi citizens that their future lies in support for the coalition forces, that they have to understand that those seeking to bring about this kind of destruction are really destroying their opportunity for a future. And so winning the hearts and minds requires a balance on the part of the military leadership and civilian leadership to make sure that we don't act in a way that only creates more hatred directed toward the coalition forces but rather persuades them that we are there for the long haul, that they're not going to drive the forces out by engaging this type of activity, and so that they should be on the side of the forces seeking to bring about a stabilized and hopefully economically prosperous Iraq for the future.

Otherwise their future is going to be very dim indeed.

KAGAN: In the last minute that we have, I want to ask you about the 9/11 Commission. I know Wolf has had a chance to talk to you about this on this program. Since then, we've learned that national security adviser Condoleezza Rice is going to testify in public, in person. In fact, we're finding out it's going to be one week from today. Do you think it's going to help a lot with the commission's work?

COHEN: I think the commission will find it very helpful. There are some rather, I guess, obvious inconsistencies in terms of what has been said in the past. They will have to -- not necessarily by Condi Rice, but certainly from Mr. Clarke and Rice and different interpretations of what has been seen and observed.

I think it's going to be important for them to resolve the issues. It's important for the administration also to be front and center publicly, under oath, as everyone who testifies before a commission should be.

KAGAN: Including the president and vice president?

COHEN: Well, I think, frankly, whether it's done in public or not, I think that anyone who testifies before a commission ought to consider themselves under oath. No president or vice president should consider that they're less than truthful or under an obligation to tell the full truth, even though they're not sworn in public to do so.

KAGAN: Former defense secretary William Cohen. Sir, thank you for your time today. Appreciate it.

And now it's your turn to weigh in on our important story. Our Web question on this day is this, "is it U.S. right to impose an overwhelming response to the killings of 4 Americans in Fallujah?" You can vote right now, cnn.com/wolf. We'll have the results later in this broadcast.

And while you're there, we'd like to hear directly you from. Send us your comments, any time, we just might read them, and some of them at end of this program on each day.

Violence in Iraq and outrage following yesterday's gruesome attacks.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, (R) ARIZONA: We have to make sure that these kinds of images do not erode either Iraqi national will or American national will, because we cannot afford to lose.

(END VIDEO CLIP)

KAGAN: We have more from Wolf's interview with Senator John McCain, what the U.S. must do to accomplish its mission.

Terror plans, al Qaeda's blueprint for global domination?

And disturbing images caught on tape, do the youth counselors in this California correctional facility go too far?

(COMMERCIAL BREAK) KAGAN: Indonesia authorities raided a terror state house and found what's being described as a blue print to take over the world. CNN has obtained an exclusive copy of this confidential and secret document. Our Jakarta bureau chief, Maria Ressa, shows us the chilling details in this exclusive report.

(BEGIN VIDEOTAPE)

MARIA RESSA, CNN CORRESPONDENT (on camera): Wolf, this is a unique document for the first time gives the reason why al Qaeda has franchised terror. There have been 30 or so al Qaeda training manuals that have been discovered around the world, they've been widely distributed and have focused on the nuts and bolts of terrorism, acts of terror, how to make a bomb, carry out an assassination attempt.

(voice-over): This document discovered in Indonesia is unique because it has a much broader perspective, call it an ideological blueprint for how to conquer the world for global domination. It's written for al Qaeda's arm in Southeast Asia, the Jemma Islamiya or JI. The group which has carried out 2 al Qaeda funded attacks here in Indonesia since 9/11.

The group document is written in a combination of Arabic and Indonesian, it outlines 2 divisions of JI: administrative and an operations arm which carries out terrorist attacks, both governed by a charter and a very well-defined leadership structure this.

This document also talks about how global domination can be possible. It talks about three different stages. First a molding, the individual, then the society, and then finally the world in order to restore the Islamic Khalifa. This is Maria Ressa, CNN, Jakarta.

(END VIDEOTAPE)

KAGAN: And now to Britain, where authorities there investigating a possible terrorist link outside of the country. It follows this week's arrest of a young man in Ottawa and the arrest of several men of Pakistani descent in and around London. Officials declined comment. Documents alleged the Canadian man has facilitated a terrorist activity in both countries since since November of last year. And his father was arrested in Saudi Arabia at the request of the Canadian government.

An al Qaeda update, more than two years into the war on terror, what has the impact been on the world's most feared organization?

Four civilians killed in Fallujah, all employees of 1 private U.S. company. We'll take a closer look at firm, its workers and their dangerous mission.

Plus, President Bush signs a bill named after Laci Peterson. Why critics say it could undermine abortion rights.

(COMMERCIAL BREAK)

KAGAN: As we mentioned, Wolf is off today. Before he left town, he had a chance to sit down with Senator John McCain who, of course, is a member of the Senate Armed Services Committee and a Vietnam veteran. The topic, what took place in Fallujah. Also, what can be done to make Iraq a safer place. Here's Wolf and John McCain.

(BEGIN VIDEOTAPE)

WOLF BLITZER, HOST: Senator McCain, thank you for joining us. These images of Americans' bodies being dragged through the streets of Fallujah, who goes through your mind when you see this?

SEN. JOHN MCCAIN (R), ARIZONA: Sorrow, outrage, anger, and a belief that we must make sure that Iraq does not fall into the hands of people like these who will do that to their own people. As we know, they mounted these attacks against Iraqi citizens as well as American citizens.

BLITZER: But what was more disturbing, perhaps, were the literally scores of people we saw cheering, screaming, they were thrilled. Delighted by the spectacle. These were Iraqis in the so- called Sunni Triangle. Does that suggest, as some critics of the war are suggesting, the U.S. perhaps bit off more than it can chew?

MCCAIN: I don't believe so, Wolf. As you may know, I called for additional troops there a year and a half ago. The fact is that this is the most volatile and difficult part of Iraq, northern Iraq is largely quiet. Southern Iraq, we've made significant progress in most areas. The so-called Sunni Triangle is still the toughest place, and yes, there's a lot of people that still hate Americans, but I would argue that Iraq is a heck of a lot better off today than it was when Saddam Hussein was in power.

BLITZER: I certainly remember your suggestion that the U.S. beef up its military presence in Iraq. Why didn't they pay attention to you, the military, on the ground, they continue to insist they have enough personnel?

MCCAIN: A lot of the people on the ground insisted to me that they didn't have enough at that time. But right now, in this particular situation, we've got to keep our resolve, we've got to stay the course. We have to make sure that these kinds of images do not erode either Iraqi national will or American national will because we cannot afford to lose, and we need do what's necessary. And I believe that we still will prevail. It's tough.

BLITZER: Are you concerned, though, that these images could have a negative impact here on the homefront in demoralizing Americans, just as what happened in Mogadishu and Somalia, that American -- after that Blackhawk went down, was dragged through the streets there?

MCCAIN: There's no doubt, Wolf, that this has a gripping effect on all Americans. It's a terrible, horrifying thing to see. I hope it has the effect of strengthening our resolve. We could leave Somalia and unfortunately, we had to, and it's still a chaotic terrible situation. We cannot leave Iraq. And the fact that these people have been attacking civilians rather than military, in my view, means that we're doing better militarily. Look, I'm not digging for the pony here. This is a terrible situation. But we can and will show resolve, and we'll show these people that we'll bring democracy and freedom to Iraq. It will be flawed, and it will be difficult, but we must prevail.

BLITZER: So let's talk about militarily and politically. Militarily, what must the U.S. do right now?

MCCAIN: Well, I think we obviously have to concentrate more effort in the so-called Sunni Triangle. It's hard for me to be a tactician. I, again, would repeat that in many parts of the country things are much better. For example, oil exports are now higher than pre-war levels. There's a lot of signs of progress, but we probably have to do a lot more in the Sunni Triangle area, militarily and recognize that we're going to be in Iraq militarily for a long time. I've said that on this program for a long time, too.

BLITZER: Militarily, the war itself, the four, five weeks of the actual invasion, a huge success, a brilliant military campaign. The post-war planning, by almost all accounts leaves something to be desired. How frustrated are you that apparently the post-war planning wasn't as thoroughly thought out as it should have been?

MCCAIN: I'm disappointed, of course, but the reason why we avoid conflicts is because they are unpredictable, things happens. In the Korean war, we never anticipated that the Chinese would come down and inflict thousands and thousands of additional American casualties. Things don't always go according to plan. Yes, we should find out what went wrong and hold anyone responsible. I would argue that our progress has been slow but steady and absolutely necessary.

BLITZER: Politically, June 30, there's supposed to be a handover to the Iraqis -- Iraqi sovereignty. Ambassador Paul Bremer, the civilian administrator, is supposed to leave July 1. This isn't a very ambitious timetable. Is Iraq ready for this?

MCCAIN: I think in some respects you could argue they'll never be ready. But there's nothing like giving people power and responsibility to have them exercise it. There will be great difficulties. The United States will be there militarily. Maybe not in the street but certainly in bases where they can come and help restore order. There will be enormous difficulties, ethnically, religious and other ways, but I think that we will have a functioning democracy in Iraq. I truly believe that, only under very difficult circumstances.

BLITZER: When you say there will be a functioning democracy in Iraq, are we talking a year from now? Five years from now? Ten years from now? What kind of timetable are you looking at?

MCCAIN: I'm looking at a long-term gradual improvement. The Federal Republic of Germany is still spending about $3 billion a year on what used to be East Germany trying to bring them, integrating them into the Federal Republic of Germany. Democracy is a messy business, but I think that we can and -- we must succeed, and I think we will over time. Under very difficult circumstances. BLITZER: How important will the eventual war crimes trials of Saddam Hussein and his other Ba'athist party leaders, once those get started by the Iraqis with U.S. and outside assistance, how important will that be in this entire process?

MCCAIN: I'd like to see that trial start as soon as possible, because we need to be reminded of the absolute brutality of this incredible despot. And it will affirm again that what we have done is for the betterment of the Iraqi people.

BLITZER: Senator McCain, what do you say to those critics who argue that the whole Iraq war was simply a distraction, it distracted the U.S. from the real national security threat, the war on terror, Osama bin Laden, and al Qaeda?

MCCAIN: I'd say, first of all, the facts on the ground are we went to Afghanistan and we prevailed there. Second, Saddam Hussein had weapons of mass destruction, he used weapons of mass destruction, and there's no doubt in my mind, if he were still in power, he'd be still trying to acquire weapons of mass destruction. The world and Iraq is better off in my view.

BLITZER: Do you think they might yet find WMD in Iraq someday?

MCCAIN: I think it's certainly possible, it becomes less likely every day, but certainly I will hold out hope. But I'm not real optimistic.

BLITZER: As you know, the critics argue that there's a finite number of U.S. soldiers, finite number of special operations forces, Arabic-speaking personnel, and that you either use them in Iraq or Afghanistan but there's probably not enough to do a thorough job in both places.

MCCAIN: I think we have sufficient troops to do the job in both places. It's very difficult but I believe we can.

BLITZER: Let's briefly talk about politics for a moment, domestic politics, this being an election year. Your good friend John Kerry is running for president. The vice president and many of the Republicans, the Bush/Cheney team argue he's not strong on national security, but you disagree with them on that. Tell our viewers why.

MCCAIN: I've been through this before, Wolf. Look, I'm just not going to attack a friend of mine. He has to defend his own voting record. I disagreed with John Kerry on the vote to fund Iraq, and that was a disagreement we had. But I'm just not going attack a friend.

BLITZER: And clarify, once and for all for our viewers, I know you've been asked this a million times but I'll ask it again. The vice presidential running mate slot. You're asked all the time. Are you categorically telling us now you're not interested?

MCCAIN: I'm categorically telling you that, Wolf.

BLITZER: You're not going to run with John Kerry?

MCCAIN: I am not.

BLITZER: But will you actively go out and campaign for the president?

MCCAIN: I am already. Yes, I'm co-chairman of his campaign in Arizona. I've already campaigned for the president in New Hampshire, and I will. Now I'm on this commission, he's asked me to serve on this commission on WMD, that, of course, will curtail some of my activities, but I am supporting George Bush for re-election of the presidency of the United States. And Dick Cheney as vice president.

BLITZER: On that note, Senator McCain, I'll let you go back to work. Thanks very much for joining us.

MCCAIN: Thank you. Thank you, Wolf.

(END VIDEOTAPE)

KAGAN: Wolf trying to make news with Senator John McCain.

She was found alive after disappearing from her dorm room. Now authorities are looking for answers. We are standing by for a news conference in Wisconsin on any updates in the case. You'll see it live on CNN.

Plus, mortal match, a professional boxer dies after a knockout. Now we hear from his opponent.

And California collision, a fiery series of pileups causing chaos on the freeway.

(COMMERCIAL BREAK)

KAGAN: Welcome back to CNN. I'm Daryn Kagan in Atlanta. Wolf Blitzer is off today.

Let's take a look live at Madison, Wisconsin. Police there waiting to brief the media on the case of a missing college student found just yesterday. We're going to bring you that news conference live. First, though, let's take the opportunity to check the latest headlines.

Today marked 11th day of deliberations in the trial of former Tyco executive Dennis Kozlowski and Mark Swartz. The judge spoke with the jury to clarify situation facing the two men, including conspiracy and securities fraud. Both are accused of looting $600 million from the company through unauthorized bonuses, personal loans and dishonest stock sales.

The Dow Jones industrial average index will drop long time components AT&T, Eastman Kodak and International Paper. Going onto the list, Verizon, American International Group and Pfizer. The changes are the first since 1999. They take effect April 8. Experts say it's a reflection of trends in the U.S. stock market. Almost two dozen people are injured following a 2 mile vehicle pileup that closed part of Interstate 15 in Southern California for several hours. The early morning chain collision happened during a thick fog situation. Investigators say more than 60 vehicles collided and some tractor trailers jackknifed.

President Bush signed the Unborn Victims of Violence Act, also referred to as the Laci and Connor Fetal Protection Bill. It's named for the pregnant California woman killed who was in 2002 and her unborn son. The legislation makes it a federal crime to harm a fetus during an attack on a pregnant woman.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: With this action, we widen the circle of compassion and inclusion in our society. And we reaffirm that the United States of America is building a culture of life.

(END VIDEO CLIP)

KAGAN: Critics of the measure say it will undermine abortion rights.

It is official, one week from today, President Bush's national security adviser Condoleezza Rice will appear before the commission investigating the 9/11 terror attacks. Let's go live to the White House and correspondent Suzanne Malveaux with more on Condoleezza Rice's testimony -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Daryn, it's official, all eyes will be on the testimony. We're told it's about 90 minutes in length. And as you know this comes after a great deal of pressure and reversal from the White House to allow her to testify publicly. Bush aides are anxious for her to make the case, the president's case, that he took these threats from al Qaeda seriously, making it a top priority.

It also comes on a day when there are excerpts from a speech that Dr. Rice was to deliver on September 11, but did not. Those excerpts leaked to the press today. It is a broad policy speech that focuses on national security. It talks about the need to protect the homeland from weapons of mass destruction. The focus, the primary focus on strengthening the missile defense system. It does not, however, mention al Qaeda or Osama bin Laden, but White House officials say that does not mean that al Qaeda or Osama bin Laden wasn't a priority for this administration.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECY: This administration doesn't measure commitment based on one speech or one conference call or one meeting. We look at the sum total of strong actions that we take.

(END VIDEO CLIP) MALVEAUX: White House officials also say just look at first foreign policy directive. The initiative from the White House was to eliminate al Qaeda. There are critics however, who say it's fairly consistent, if you look at speeches, briefings and things like that from White House officials leading up to September 11, that for the most part they were focusing on strengthening the missile defense system.

Should also let you know as well that the administration speak out very strongly against the attacks in Fallujah. We have understand that the president himself actually saw some of the disturbing pictures from yesterday, and he is resolved to bring them to justice.

(BEGIN VIDEO CLIP)

MCCLELLAN: Will not be deterred by these cowardly, hateful acts. These were despicable attacks, and this administration will continue working closely with the coalition and the international community and the Iraqi people to help the Iraqi people realize a better future built on democracy and freedom.

(END VIDEO CLIP)

MALVEAUX: Bush aides say it affects administration personally as well as the president, but also politically as well. This is a president who is running on his leadership as a wartime leader.

KAGAN: Suzanne Malveaux at the White House. Suzanne, thank you.

U.S. military officials in Iraq are promising an overwhelming response to the attack yesterday that killed four Americans in Fallujah. The Americans were employed by a U.S. company called Blackwater Security Consulting. One of the many private contractors worked in Iraq.

(BEGIN VIDEOTAPE)

KAGAN (voice-over): If you saw these men on the streets of Iraq, you might mistake them for U.S. troops. You'd be wrong, but you wouldn't be that far off. Blackwater Security was founded in part to take advantage of business opportunities created by the downsizing of the U.S. military.

It's based at a 6,000 acre site in rural North Carolina, a campus the company calls the most comprehensive private tactical training facility in the U.S. President Gary Jackson and two other Blackwater leaders are former Navy SEALs and their company hires veterans to provide security for clients around the world.

KEN ROBINSON, CNN NATL. SECURITY ANALYST: These are typically former special operations community personnel who are highly trained in the use of deadly force, also in surveillance detection, and in avoidance, risk avoidance.

KAGAN: The Blackwater employees attacked in Iraq were providing security for U.S. government food deliveries. But the company's role there is much more extensive. Its duties include, providing protection for Paul Bremer, the U.S. civil administrator in Iraq.

Blackwater is just one of a growing number of private contractors hiring veterans to do jobs that previously were assigned to the regular military, including the protection of personnel working for private companies and nongovernment organizations.

ROBINSON: They provide very focused security for detailing out how a protectee's day occurs, from the beginning of the morning from the time they tuck that person back into bed at night, or whether that be an NGO trying to conduct operations providing food or water or support to the population.

KAGAN: Military analysts say the arrangement allows regular troops to concentrate on fighting, but worry that the lucrative pay offered by the private contractors, often more than $100,000 a year, is depleting the ranks of the special forces.

On the Blackwater Web site today, a somber statement saying that yesterday's events demonstrate, quote, "the extraordinary conditions under which we voluntarily work to bring freedom and democracy to the Iraqi people." The statement goes onto say, "while we feel sadness for our fallen colleagues, we also feel pride and satisfaction that we're making a difference for the people of Iraq."

(END VIDEOTAPE)

KAGAN: And from a private security government to the U.S. government, looking at the question of how fragmented is al Qaeda and how much progress is the U.S. seeing in its war against terror. Our National security correspondent David Ensor brings us an update from Washington, D.C. -- David.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Well, Daryn, first the good news from Cofer Black, the State Department's counterterrorism coordinator whose a former senior CIA official. The good news, he says, is that since 9/11 al Qaeda has been dealt a body blow by the U.S. and its allies.

(BEGIN VIDEO CLIP)

COFER BLACK, COUNTERTERRORISM COORDINATOR: The al Qaeda organization that we engaged before 9/11 and at 9/11 has been put under catastrophic stress. 70 percent of their leadership has been arrested, detained or killed. The majority of the rest them essentially are primarily defensive.

(END VIDEO CLIP)

ENSOR: Black says, with much of the A-team of al Qaeda dead or in jail, less experienced terrorists are now running the attacks. The classic example, he says, was the November bombings in Saudi Arabia that killed mostly Muslims and have been, Black says, a public relations disaster for the group. While al Qaeda has been gravely wounded, according to Black, it is, quote, "patient, resourceful and flexible, able to draw on the global support of Jihadists around the world." Black also worries that al Qaeda's extreme ideology is spreading well beyond the Middle East. The group, he told Congress, is finding ways to harness local terrorist groups in its more global anti-western cause -- Daryn.

KAGAN: David Ensor in Washington.

Barricades surrounding many structures in the nation's Capitol trying to thwart a possible terrorist attack. Some are reviving a proposal to put a fence around the U.S. Capitol and office buildings. Critics say the proposal goes too far, adding that a fence would not protect against an attack from a plane or a shoulder-fired missile.

We are standing by once again for a news conference at Madison, Wisconsin, a college student found alive, but what happened to her in the four days that she was missing? An update just ahead.

Also youth inmate beating caught on tape. Did the guards go too far? We'll go live to California for more on that story.

And a fatal fight, a round in a ring leaves a professional boxer dead, his opponent shaken.

Plus this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Want to shop till I drop.

(END VIDEO CLIP)

KAGAN: You can laugh but she now has the money to do it. Meet the couple who won the second largest Lottery jackpot in history. That's ahead, right now let's go live to Madison, Wisconsin for the latest.

(NEWS CONFERENCE IN PROGRESS)

UNIDENTIFIED MALE: ...We will not be taking questions after that. So I will turn it over to Chief Wray for a brief statement.

Well, good evening. Make a brief statement and that will be it. I will not be taking questions. On March 27, Audrey Seiler reported that she was abducted by knifepoint from her apartment. After extensive searching by hundreds of volunteers and numerous law enforcement officials Audrey was located. Audrey was able to provide a description of a suspect to our department prior to being transported to St. Mary's Hospital where she was evaluated and eventually released.

Madison police officials had an opportunity to speak with Audrey regarding the description of the suspect and began searching the area where she was last seen. After several hours of intensive police operations, the area was searched and no suspect was located. Currently, the Madison police department is investigating the reported sequence of events from Audrey and other witness statements. Like in any other major investigation, there may be inconsistencies. But we are continuing forward with this investigation. Let me repeat that. Like in any other major investigation, there may be inconsistencies, but we are continuing forward with this investigation. It is not our role or the role of police, the police department to speculate on the outcome of an investigation until it has been completed. The Madison police department will continue to investigate all reports made to our department, in an attempt to identify the facts involving the reported abduction. We continue to urge people to continue taking normal safety precautions such as locking your doors, utilizing safe rides, never walking alone. The Seiler family is doing well as our investigation continues to progress. We continue to urge anyone with information about this incident to contact Crimestoppers. We also have a composite that we'd like to share.

UNIDENTIFIED MALE: I'll make it available at the doorway as you exit, it will be there.

UNIDENTIFIED MALE: Thank you.

KAGAN: All right. Listening to a brief statement by the Madison, Wisconsin police department bringing an update on the situation involving Audrey Seiler, she's a 20-year-old University of Wisconsin college student who disappeared last Saturday morning and then was found Wednesday. You heard the police officer talk about how in any investigation there are some inconsistencies, they are going forward with their investigation of what might have happened to Audrey Seiler.

We want to bring in Mike Brooks, who helps us on these police matters. That was different. That was a very different kind of news conference. We've listened to hundreds of them here on CNN. When he first came out and made that statement, it sounded like he was going to say we're calling off the whole thing.

MIKE BROOKS, CNN CENTER: It did. He said on March 27, she reported that she was abducted at knifepoint. But again, law enforcement can only go on the facts they're given by witnesses and by the victim. We go back to February 1, she was also the victim of an assault back then that's still an open case...

KAGAN: An alleged victim. Even that they said -- that was another one that didn't have any witnesses.

BROOKS: Exactly. And so law enforcement can only go on the information it had. My sources out there, the day before yesterday, when they said they had basically absolutely nothing. But I've said all along...

KAGAN: Let me just interrupt here and hold that thought. We're getting sketches of what they're saying is the suspect. This is a composite drawing. Today police said that they talked for many hours with Audrey Seiler, that this is the description she gave of her alleged abductor, as a white male, late 20s, early 30s. About six feet tall, last seen wearing a black sweatshirt, black hat and jeans. As we take a look at that, and again, sorry for the interruption, Mike, continue with your thought. BROOKS: I said yesterday, while they were searching this area that investigators were going all on theories of whether she was the victim of a random act of violence. Was it a planned kidnapping or she left of her own accord. They're still looking at all the facts and all the evidence to see if one of the theories played out. They went back to the scene today, they said early on today, they went back to the scene looking for evidence in the area they were searching for yesterday. We don't know if they found any evidence there as of yet.

That will also be very, very telling in their investigation to say whether or not she was candid in her interviews, and her initial interview and the lengthy interviews that they've conducted. And again, going back to the witnesses, we don't know what the witnesses have said, but early on, I thought it was very strange yesterday that all of a sudden, boom, they found her, searched this area. But as we saw, the number of law enforcement that were in the area yesterday searching. Law enforcement was taking a response they thought they had to because the information was given to them by the victim and by witnesses.

KAGAN: What about the surveillance video that shows her leaving by herself early Saturday morning.

BROOKS: It doesn't show much. I've looked at that a couple of times and you really can't make out unless you use some enhancements that law enforcement can do. It really doesn't show much by looking in the background of that. A lot of times investigators will look at video but they'll also look in the background to see if there's a car there, there wasn't much to go on that I could see, investigators are not giving up much information on what they gleaned from that video.

KAGAN: All right, Mike Brooks, thank you for that. Once again, police in Madison, Wisconsin saying that their investigation will go on, on exactly what happened to Audrey Seiler, the four days she was missing over last week.

Much more news ahead, including some very disturbing video from a California correctional facility for teenagers. Was a beating that one of those teenagers took warranted? We'll talk about that just ahead.

(COMMERCIAL BREAK)

KAGAN: Juvenile justice under fire in California. At the center of the controversy surveillance tape showing two young men being beaten by guards at a state facility. Our Rusty Dornin is live in Sacramento with a look at video -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Daryn, we've known about this for weeks. There's been a big controversy over it. Although the state was not going to release it. Things really heated up when this internal investigation was released that said what was on that tape showed that the staff used excessive force on two of the young inmates. Now, what you see on the tape is a brawl breaking out in the center of this youth correctional facility in Stockton, California, allegedly after two of the young inmates attacked the counselors. In the foreground, one of the counselors punched the young inmate on the ground subdued 28 times with both fist. In the background, one of the of the other inmates is kicked by another counselor.

Now as I said, there was an internal investigation, they said the staff used excessive force, and there was a cover-up among the witnesses who did not come forward or gave statements that were really inconsistent with what was on the videotape. They handed over statements to the district attorney's office locally, but they refused to prosecute or file charges. They said there just wasn't enough evidence. Now it's been turned over to the state attorney general, he talked to reporters this afternoon. He says, look, he said you didn't see what was on the tape what happened before or what happened afterward. There is some evidence that we don't know about. But he did admit that one inmate was subdued and there was excessive force used. But he just kept saying there was other evident involved. He wouldn't say anything else. He said they are looking at it, and they'll discuss whether they'll file charges either later this week or sometime next week -- Daryn.

KAGAN: Rusty Dornin, tracking that for us from Sacramento.

A fatal knockout inside the ring...

UNIDENTIFIED MALE: In the back of your mind, you don't think it's going happen to you. You know, but unfortunately it did happen to one of us.

KAGAN: Hundreds of people looking on as one boxer loses much more than a fight.

(COMMERCIAL BREAK)

KAGAN: A North Carolina boxer says he's hanging up his gloves for now after a weekend bout took a tragic turn.

(BEGIN VIDEOTAPE)

KAGAN (voice-over): It was a typical boxing match, in the striped trunk, 29-year-old David Richtman (ph), an intensive care nurse boxing professionally for only nine months. His opponent, 30- year-old Earl Ladson, a church deacon and pro boxer with two years under his belt. Observers say Richtman was winning this fight Savannah, Georgia last Saturday. Because of the grim nature we're about to describe, we're not going to show the video from the fourth round. That though was when Ladson landed a series of blows to Richtman's face resulting in a knock out. Richtman never regained consciousness and later died.

EARL LADSON, BOXER: We here today to set record straight.

KAGAN: At a news conference Thursday, he apologized once again.

LADSON: We both fighter, we had the same intention to win. We both knew at time that somebody could be killed going into the ring because that's part of the sport. But you don't expect that nobody's going to be killed. KAGAN: Ladson says he's waiting for the autopsy results which he says could show Richtman died as a result of a previous injury, aggravated during their fight. He also says he's spoken to Richtman's widow.

LADSON: We had a good conversation, and I spoke with her, and she's in good -- she in a good condition right now. She said that she wish that that was somewhat kind of way possible that I could come down and speak at his funeral.

KAGAN: Ladson says the accident has left him too shaken to go into the ring any time soon.

LADSON: I can't say I just quit, I know as of now, I am taking time off, and -- because right now my confidence is just not there to go right back in and just hit a man.

(END VIDEOTAPE)

KAGAN: An autopsy on Richtman is planned. No word on when we can expect results.

The results of our web "Question of the Day" when we come back.

Also words any wife would love to hear from her husband. Listen to these.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Heard him say 1, 13, 20, 21, 30 and 24, I said sweet heart, we've got that number.

(END VIDEO CLIP)

KAGAN: Oh, yes. The winners of the second biggest jackpot in history finally come forward.

(COMMERCIAL BREAK)

KAGAN: Here's how you're weighing in on our web "Question of the Day."

Is the U.S. right to propose an "overwhelming" response to the killings of 4 Americans in Fallujah? Seventy-seven percent of you say, yes, 23 percent say, no.

Once again, a reminder, this is not a scientific poll, just a place to express some opinions.

And now to your e-mail.

Eugene writes to us, "The situation in Fallujah cannot be allowed to continue. Without an immediate military response, the enemy will continue it's attacks and gather more local support."

But Erik says this, "I completely support finding those responsible for the atrocities at Fallujah, but the last thing we need in that area is an aggressive indiscriminate military response to those atrocities. These kind of anti-terror tactics have proven only to escalate the conflicts."

Mega Million winners come forward and that is our "Picture of the Day." J.R. Triplett and his wife Peggy are taking home the second largest jackpot in world history. $239 million. Here is what they had to say about that.

J.R. TRIPLETT, LOTTERY WINNER: I'm going to spend it somewheres. I don't know, probably in (UNINTELLIGIBLE). I'm going to spend it wise I'll put it that way.

PEGGY TRIPLETT, LOTTERY WINNER: I'm going to shop until I drop.

(END VIDEO CLIP)

KAGAN: Congratulations to them.

That's it for me. I'm Daryn Kagan. See you tomorrow morning. Wolf is right back here tomorrow.

"LOU DOBBS" is next.

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