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CNN Wolf Blitzer Reports

Crisis in Iraq; Interview With Colin Powell

Aired April 09, 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)
WOLF BLITZER, HOST: Happening now. Crisis in Iraq. In just a few minutes, the Secretary of State Colin Powell will join me to speak out on the hostilities, the hostages, and the upcoming handover of power. Stand by for hard news on WOLF BLITZER REPORTS.

War in Iraq, then and now.

GENERAL JOHN ABIZAID, U.S. CENTRAL COMMAND: One year later, we thought clearly a good sized fight going on here.

BLITZER: U.S. troops wage a bloody battle against old foes and a deadly new enemy.

Kidnapped. A cruel tactic targets civilians. I'll speak with Terry Anderson who spent years as a hostage in Lebanon.

Allies on alert. In Rome, stepped up security for holy week. In London, a growing belief that a terror attack is inevitable.

Nightmare ride. They were parasailing when the line suddenly snapped. We'll show you the dramatic rescue.

ANNOUNCER: This is WOLF BLITZER REPORTS for Friday, April 9, 2004.

(END VIDEOTAPE)

BLITZER: A halt in fighting on one front, significant progress on another, and a sobering reminder of the high cost of the war in Iraq. The Pentagon is reporting five more Americans killed in action. Two U.S. army soldiers, three United States marines. In just a moment, my special conversation with the Secretary of State Colin Powell about Iraq. First, though, an update on the battle lines.

(BEGIN VIDEOTAPE)

BLITZER: On this the one-year anniversary of the fall of Baghdad, the Iraqi capital. U.S. forces today pulling down posters in Firdos (ph) Square of Muqtada al-Sadr, the young Shiite cleric behind much of the current anti-American uprising.

The same location one year ago as American troops stormed Baghdad, toppling Saddam Hussein literally and figuratively. But today, a loud reminder that the coalition's work is far from over. A mortar shell fired at a major Baghdad hotel. It missed, hitting a tennis court instead. No one was hurt. The head of the U.S. central command sums up the situation.

ABIZAID: Certainly not the same level of intensity that we had during the movement phase of the war, but it is a counter-insurgency operation up here. It's an operation against an illegal militia force down in the south.

BLITZER: The operation includes the city of Kut. U.S. military officials report progress in taking back the town from al-Sadr's Mehdi army. They say American soldiers destroyed al-Sadr's office there and have secured strategic sites. And the officials say tribal leaders in Kut are on their side, disgusted by the violence of al-Sadr's uprising. In Fallujah, a lull after days of fierce fighting between U.S. marines and insurgents. American commanders have halted their offensive to allow negotiations between anti-American forces and Iraqi leaders. But...

BRIG. GEN. MARK KIMMITT, U.S. ARMY: The coalition remains firm that should these discussions break down, the coalition military forces are prepared to go back on the offensive operations and at no time during the suspension of offensive operations do soldiers forfeit the inherent right of self-defense.

BLITZER: And in the north, fresh hotspots, including Mosul where violence broke out after a demonstration.

(END VIDEOTAPE)

BLITZER: Behind the scenes of bombings and gun battles there's another story playing out, as well. The building of a new Iraq. CNN's Jim Clancy reports from Baghdad.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN CORRESPONDENT: Hundreds of thousands of Iraqi students have returned to refurbish classrooms where teachers are being paid a living wage. For the first time schools are getting computers. But students say the security situation makes it difficult for them to take advantage of the improvements.

UNIDENTIFIED FEMALE: I must say our driver who take us to college carry a gun which is not to protect us.

UNIDENTIFIED FEMALE: From this situation. I don't know what -- when it will be solve this problem. I don't know. And I am helpless. Believe me.

CLANCY: Some improvements don't hinge on security. Electricity has been restored to levels well above those before the coalition invaded Iraq to topple Saddam Hussein. Clean water, also widely available sometimes in rural areas that never had it before the coalition arrived. Newspapers and the media are flourishing. There are estimated to be around 200 newspapers published representing views that Iraqis were never able to hear before. Telephone communications not only restored but international links are available that were never possible before. And there are several major cell phone providers, as well.

Internet access, unheard of under Saddam Hussein is now open along with dozens of Internet cafes allowing users without computers to get on the Internet for communication and research. Iraqi hospitals, they have seen some improvement, although much more is expected on that front in the coming year. The U.S. is preparing to spend more than a billion dollars on new and existing healthcare facilities. One of the biggest changes Iraqis see is that their own security forces are being trained and ready. But they are not ready yet.

A year after arriving here some members of the U.S.-led coalition say they can't fix everything. They complain too many Iraqis are standing on the sidelines watching and waiting instead of seizing the opportunities already taking shape in their country. Jim Clancy, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: So how big a setback is the current wave of warfare in Iraq? Just a short while ago I spoke with the Secretary of State Colin Powell.

(BEGIN VIDEOTAPE)

BLITZER: Secretary, thanks very much for joining us. Honestly, did you expect a year ago when we saw that statue of Saddam Hussein go down in Baghdad, that a year later it would be as violent and as dangerous as it is right now for U.S. military personnel?

POWELL: No, but we knew that there would be those who would stick with the old regime, the old despotic regime that filled so many mass graves and caused such trouble. And those elements haven't been fully dealt with yet. But they will be dealt with.

We have remnants of the old regime in the Sunni Triangle, and you've seen them at work for the past week or so. And we have this situation down south with this cleric, Mr. al-Sadr, who has a militia that doesn't represent all of the Shia people. Nor does he represent all of the Shia people. And he's caused a great deal of trouble over the last week.

But our military commanders are slowly rolling this problem back. They've retaken al-Kut. They're on the outskirts of Fallujah in the Sunni Triangle, and I'm confident that they will bring the situation under control and that we'll get back on track with moving toward an Iraqi interim government to be in place by the end of June and for the reconstruction effort to go forward.

BLITZER: Former Senator Bob Kerrey says that this was all very predictable. A largely Christian army, a U.S. coalition-led army occupying a largely Muslim nation. Was this all predictable?

POWELL: No, I don't think it was all predictable. I think we knew it was going to be a difficult mission. We essentially took down a regime that had been there for many years, oppressed its people for many years. And in taking down that regime, we took down the political structure that supported it and the great part of the civil structure, as well. All of that has to be built back up. And I don't see it in those terms at all.

I think the Iraqi people want democracy, deserve democracy and we're going to help them achieve that goal of having a democracy. And when you ask the Iraqi people what they want, they want the same thing that our own citizens want. They want to live in peace. They want jobs. They want health care. And they want a better future. And we're determined to help them achieve those goals.

BLITZER: There has been a new and ominous development in the past couple days: kidnappings, hostage taking of people -- aid workers, journalists. What does this say to you, and are there, as far as you know, any Americans that have been taken hostage?

POWELL: The reports earlier of a couple of Americans that were taken hostage, some news reports, but I haven't had any confirmation that any Americans have been taken hostages -- taken hostage.

But there are hostages that have been taken. And you're familiar with the nations they're from: Japan, the United Kingdom and several others.

This shows that there are people out there -- think of what they're doing. They are going after those who were there to serve the Iraqi people. They're going after health care workers. They're going after people who were there to help with reconstruction, to help with fixing the sewer systems, sanitation system.

So we can't let these individuals determine the future of the country or determine the future of 25 million people. And so we will go after them, and we are going to encourage Iraqi citizens to help us identify who these people are, get them under control, bring them to justice and destroy them.

BLITZER: Is there any wiggle room in the June 30 hand over of sovereignty from the coalition authority to the Iraqis?

POWELL: We're sticking with June 30. We think it's the right date. We think it's achievable. Ambassador Brahimi, the United Nations representative, is in Baghdad now, working with Ambassador Bremer and the coalition -- or the governing council to look at models of what this interim government might look like.

And so we're going to continue to drive ahead with that work. There's no point delaying it. While the security situation gets stabilized by our military forces, let's keep driving straightforward with our reconstruction efforts and with the political process.

BLITZER: Is June 30 a goal, or is that set in concrete?

POWELL: It is our goal. It is an achievable goal, and it is the goal that we're working towards.

BLITZER: Mr. Secretary, you served with distinction in Vietnam. Senator Kennedy says Iraq has become President Bush's Vietnam. Has it?

POWELL: No. It's one of these interesting and charming (ph) but rather unpleasant labels. Vietnam was another time, another place, several presidents ago. And there is no parallel here. And we should not try to contaminate the work we are doing, the important, vital work we are doing now, by trying to hang ancient labels on it.

Let's view the situation for what it is. A dictator is gone. That regime is gone. He's in jail. What we are trying to do is build a democracy. We are there for the best purposes.

And what is happening right now is that there are remnants of this regime. There are terrorists. And there are individuals who have no concept of democracy, don't want to see freedom for the people of Iraq, don't want to see anything other than a new dictator take over, who are trying to keep democracy from happening, trying to thwart our reconstruction efforts.

We must not let that happen, and we must not suddenly lose -- lose the energy needed for this task by dragging out old labels such as "This is Vietnam. This is Beirut." This is Iraq, 2004, and we're going to help the Iraqi people to a better life.

BLITZER: Mr. Secretary, thanks very much for joining us.

POWELL: Thank you, Wolf.

(END VIDEOTAPE)

BLITZER: And here's your chance to weigh in on this important story. Our Web question of the day is this, "are things going the way you expected in Iraq one year after the fall of Saddam Hussein." You can vote right now, go to cnn.com/wolf. We'll have the results for you later this broadcast.

Iraqi insurgents working on the offensive and using a new tactic to target civilians. An update on the hostages being held right now.

Plus, insight from someone who is experienced this type of terror firsthand. I'll speak with former Beirut hostage Terry Anderson. He'll join me live.

Declassifying a key White House document. Will it reveal new clues about Osama bin Laden? And what the Bush administration may have known prior to 9/11?

Plus this...

(BEGIN VIDEO CLIP)

QUESTION: What were you thinking when it snapped?

UNIDENTIFIED FEMALE: That I was going to die. I really did.

(END VIDEO CLIP)

BLITZER: A horrifying ride; parasailers in a panic after their rope snaps. The dramatic rescue. That is coming up later.

(COMMERCIAL BREAK)

BLITZER: As U.S. and coalition troops battle various enemies on multiple fronts in Iraq, the insurgents are cruelly targeting foreign noncombatants. The latest weapon, kidnapping. CNN's Brian Todd reports.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): A new tactic in Iraq, perhaps inevitable, shuddering nonetheless. Three young Japanese nationals, blind folded, terrified, under threat of being burned alive if Japan does not pull its forces out of Iraq. The prime minister shows his resolve.

JUNICHIRO KOIZUMI, JAPANESE PRIM MINISTER (through translator): We will not bow to any despicable terrorist threats.

TODD: This week alone, at least 12 foreign civilians have been kidnapped in different incidents throughout Iraq. Some have been released, but experts say this signifies a shift to an ominous method of warfare.

BRIAN JENKINS, TERRORISM EXPERT RAND CORP: To choreograph this violence. To make these threats as they have done, burning people alive, to videotape all of this, this is true terrorism and its calculated to create these effects and it will create a crisis.

TODD: Experts we spoke to, including two former members of the U.S. special forces, say this tactic could actually be effective in driving a wedge in the coalition. One says targeting Japan, where public resistance to joining the coalition force has been strong, embodies the same logic as the commuter train bombings in Madrid. An effort to shake a smaller less powerful and divided member of the coalition. Some believe it has collateral benefits.

KEN POLLACK, CNN ANALYST: Even if these hostage takers can't get the United States and its coalition allies to withdraw from Iraq, they may be hoping that holding hostages will give them the same kind of leverage and ability to humiliate the United States and its coalition powers that the Hezbollah gained from the same method in Lebanon.

TODD: What about the century old motivation for kidnapping. Cold hard cash? Still used with success by rebels in Latin America. It also became popular in Iraq, where outlaws took advantage of the lawlessness that followed the fall of Saddam Hussein.

But those abductions for ransom targeted wealthy Iraqis, not foreigners. The experts we have spoken with say the current wave of kidnapping appears for now to be strictly political.

A former U.S. special forces member reminds foreign civilians in Iraq to be especially cautious of roadblocks. Don't drive near disabled vehicle vehicles. Look around when you leave your compound in the morning and move fast. Brian Todd, CNN, Washington. (END VIDEOTAPE)

BLITZER: Two decades ago during Lebanon's bloody civil war dozens of foreigners were kidnapped. Most of them to Shiite militants tied to an Hezbollah group. Terry Anderson was the chief Mideast correspondent for the Associated Press when he was grabbed at gunpoint in Beirut in 1985. He spent almost seven years in captivity.

Terry Anderson is joining us now live from New York. Terry, thanks very much for joining us. When you hear what is going on in Iraq now, this new tactic, kidnapping, hostage-taking, what goes through your mind?

TERRY ANDERSON, FMR. BEIRUT HOSTAGE: Well it's not surprising. The same kind of conditions in Iraq today as were in Lebanon then, total chaos, no central government authority, no effective police force or army. Dozens of groups of militia wandering around. I'm not surprised that they are trying this tactic out again. Look, this is not for practical gain. The kidnappers in general learned in Lebanon eventually that they couldn't get a government to bow to their wishes just as the Japanese prime minister is saying he can't give in. Nonetheless, they are putting terrible pressure on people. Look at that film. Look at those terribly scared young people. One of them is 18 years old. It's just horrible. How would you like to be the government that has to say no, we will not trade for you. That's terrible pressure they are putting on.

BLITZER: All of us, of course, remember among these people who have been taken hostage, right now kidnapped, there are aid workers, humanitarian workers but there are also some journalists and how can we forget Daniel Pearl who was an American journalist who was kidnapped in Pakistan and eventually executed?

ANDERSON: I don't want to draw that parallel because it's too frightening. The people that went after Daniel Pearl had no intention of trading him for anything. They knew they were going to kill him from the beginning. It was a pure terror tactic. I'm with the Committee to Protect Journalists and we worry about the journalists in Iraq. They are professional. They are there because they have to. It's the biggest story in the world. It is vitally important that people see what is going on there and learn what is really going on there.

We try to help them, we support them, we try to give them training, we have a book out on how to report from dangerous places and Iraq right now is the most dangerous place in the world for a journalist. I worry more about the civilians. The aid workers, the construction workers, all the people who have been brought over there to help in the so-called reconstruction effort. What are they supposed to do? How can they operate? Then you always get in a situation like this, young idealistic people who want to help with the Red Cross or with some well meaning organization, all I can tell them is go back to your hotel and pack a bag and sit on it until you can get to the airport because this is not going to get better, not that I can see.

BLITZER: The argument, the other argument is, if that happens, the terrorists will have then won?

ANDERSON: Well, no, it's a matter of personal safety. If you don't have to be there, if you are not a professional, don't do it. This is not a game. This is terrible. What is it doing to the families of those Japanese civilians? These are terrible people. When they threaten to burn these kids alive, we have to take that seriously. These are terrorists in the true meaning of the word and you have to take that seriously. If you don't have to be there, don't.

BLITZER: I know that you -- I know that you relive the horror of what you went through 20 years ago or so in Lebanon. And you thought a great deal about it. Take us to those first few days when you were taken captive. What were you going through? What might those who are going through in Iraq right now, the kidnapped people, what are they going through?

ANDERSON: Well, of course, there's a fear and that terrible sense of helplessness, there's nothing you can do or say that will help the situation. You know, most adults have never been in that situation. They have never been in a place where they are completely helpless to affect their own fate or anybody else's. You are just a piece of meat. Hundreds of humiliations, when you go to the bathroom, when you eat, when you get a drink of water. Plus these people seem to be deliberately trying to frighten those students, those aide workers.

I mean, I don't know whether that was an act for the camera. They are certainly capable of that or whether that is really the way they are being treated. I hope not. I hope that was just an act for the terror effect on the tape. But, yes, it's a horrible situation. You feel guilty that you have done something so stupid as to get kidnapped and you know it's devastating your family and there's absolutely nothing you can do about it, nothing.

BLITZER: Terry Anderson, we're so happy you are OK. You are back home safe and sound after that ordeal you went through. Thanks very much for sharing some thoughts with us.

ANDERSON: Thank you, Wolf.

BLITZER: Going public with a secret document. What else is in the memo that prompted heated discussion at the 9/11 hearings? We'll have details.

Major European cities step up security. What has officials so nervous right now?

Plus, ancient rites and an ailing pope. Marking Good Friday in Rome and around the world.

(COMMERCIAL BREAK)

BLITZER: The White House says it's working to declassify an August 6, 2001 intelligence memo titled "bin Laden determined to attack inside the United States." The memo was mentioned during National Security Adviser Condoleezza Rice's testimony to the 9/11 Commission. Our White House correspondent Suzanne Malveaux is near the president's ranch in Crawford, Texas. She's joining us now live with some new information -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, officials tell us don't expect to see the brief declassified today. Perhaps in the next couple of days, it's going to take some more time. The White House is eager to get it declassified and to get on top of this controversy. It's all over that August 6, 2001 presidential daily brief that was given to the president at his Crawford ranch a month before the September 11 attacks.

It was in response to the president inquiring about the potential of al Qaeda attacking in the United States because it was such a high state of alert of Americans being attacked overseas. Now, the title created some alarm among viewers and also Bush critics at Rice's testimony. It is called "bin Laden determined to attack inside the U.S." Some commissioners questioning Rice rather harshly suggesting this could have been a warning for the September 11 attacks. Rice saying emphatically that they didn't have those kind of details. As you can imagine, both sides are eager to make their point to get the document out to the public -- Wolf.

BLITZER: Suzanne Malveaux in Crawford, Texas. Thanks very much.

One day after hearing testimony from former president Clinton, the 9/11 Commission heard testimony from former vice president Al Gore today. Like Clinton, Gore testified behind closed doors and not under oath. After the three-hour session was over the commission issued a statement saying the former vice president's testimony was candid and forthcoming and it thanked him for what it called his continued cooperation.

Now the fighting since suspended in Fallujah but that's not the case for other cities across Iraq where troops continue to battle fierce opposition. Where does the U.S. go from here?

Plus will the violence in Iraq affect the president politically? Carlos Watson joins me for the inside edge with new poll numbers out today.

And allies on alert around the world stepped up security for the holy week.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN. I'm Wolf Blitzer in Washington.

We're following a developing story from one year in Iraq after the symbol of Saddam Hussein's regime came down.

U.S. military forces in Iraq have put their offensive against insurgents in Fallujah on hold while Iraqi officials try to negotiate an end to hostilities there. Meanwhile, American forces report progress in taking the southern city of Kut back from a Shiite militia. We'll have much more on Iraq with an in-depth report from Baghdad in just a moment.

Former Enron CEO Jeffrey Skilling is reportedly hospitalized. The Associated Press quotes police as saying Skilling was taken in for observation in the middle of the night after allegedly exhibiting bizarre behavior in a bar and on the street. The AP says he was pulling on people's clothes and accusing them of being FBI agents and of following him. Skilling has pleaded not guilty to charges of fraud and insider trading.

A yearlong mission in space. NASA is considering a Russian proposal to double the time crews stay -- they stay on the International Space Station. NASA says part of the reason is President Bush's proposal for manned Mars missions. Those would last more than a year.

We continue to monitor events in Iraq on this first anniversary of the fall of Baghdad.

As Julian Manyon of Britain's International Television News reports, the Iraqi capital still sometimes looks like a war zone.

(BEGIN VIDEOTAPE)

JULIAN MANYON, ITN REPORTER (voice-over): On the outskirts of Baghdad, American vehicles burn. On the anniversary of the fall of the Iraqi capital, it's now the insurgents who are on the offensive.

To the west of Baghdad, fighting has broken out again in the town of Fallujah. That's despite a coalition announcement that the Marine offensive would halt to allow humanitarian efforts and talks with the insurgents to take place.

BRIG. GEN. MARK KIMMITT, U.S. DEPUTY CHIEF OF OPERATIONS: It's important to understand that the coalition remains firm that should these discussions break down that the coalition military forces are prepared to go back on the offensive operations.

MANYON: For those who plan and desired this war, the toppling of Saddam's giant statue in the center of Baghdad was a moment of triumph, but anyone who expected celebrations in the square today was disappointed.

(on camera): This square which briefly symbolized the victory of Saddam Hussein, is now empty and under heavy American guard. The American Humvee jeep with a loudspeaker on top is telling people in Arabic that the square is locked down and that anyone seen entering it in a car or carrying a weapon will be shot on sight.

(voice-over): U.S. troops climbed the plank where Saddam's statue used to stand to remove fresh posters of the Shiite militant leader Muqtada al-Sadr. Later, a mortar round landed near the square, one of at least half a dozen fired into the city center today.

At this anniversary of what was supposed to be liberation, many Iraqis are now turning against the coalition. For the first time in living memory, Sunni and Shia worshipers prayed together in one of Baghdad's largest mosque and denounced the U.S. operation in Fallujah. The speaker demanded that the occupying forces leave Iraq.

In one of Baghdad's Shiite slums, a massive demonstration chanted "victory to Muqtada al-Sadr." And al-Sadr himself issued a statement calling George Bush an enemy and warning that if U.S. forces do not leave Iraq, they will face a revolution. Meanwhile, the three Japanese hostages are still under threat of death from their captors. A year after victory, the coalition's woes are piling up.

Julian Manyon, ITV News, Baghdad.

(END VIDEOTAPE)

BLITZER: And let's get an update on the fighting right now from our senior Pentagon correspondent, Jamie McIntyre.

Jamie, there has been a cease-fire supposedly brokered in Fallujah. What do we know about its status?

JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: Well, Wolf, technically, that pause or cease-fire as you said remains in effect.

But shortly after it went into effect, some of the Marines in Fallujah said they were taking enemy fire, so they were returning fire. But the Pentagon insists that's part of the inherent right of self-protection and that the offensive -- pause in offensive operations remains in effect. That was designed to allow members of the Iraqi Governing Council to negotiate with local leaders, also to allow the residents there to tend to their wounded and get some humanitarian aid.

But, Wolf, as night hit Fallujah tonight, there are reports that what appears to be AC-130 gunships firing at targets in Fallujah is under way. So it is really unclear how much of a cease-fire this pause really is.

BLITZER: Jamie McIntyre at the Pentagon -- Jamie, thank you very much.

President Bush had high praise for the testimony of his national security adviser, Condoleezza Rice, before the 9/11 Commission, but how does America feel? Look at this. A new CNN/"TIME" poll was taken yesterday, the day of her testimony; 48 percent of those polled said they believe Bush did all he could to fight terrorism before 9/11; 40 percent said no. Last month, 42 percent said the president did all he could, while 54 percent said no; 49 percent now say they approve of the way the president is handling his job; 47 percent disapprove.

With more now on the political impact of the 9/11 Commission's investigation and more, CNN political analyst Carlos Watson joins me now with "The Inside Edge."

Carlos, the 9/11 Commission, all eyes were on Condoleezza Rice yesterday. What really happened?

CARLOS WATSON, CNN POLITICAL ANALYST: She gave a solid performance, but despite what we see as a little bit of movement, it's not a huge movement, where you move 20 points of one direction in another.

Fundamentally, I don't think Americans are as focused and I don't think they will be as the election comes close on what happened yesterday as much as what is going on now in Iraq and what is likely to happen this summer maybe and this fall here in the U.S., the fear about more terrorist incidents.

And what that says to me is that Iraq is really going to become the centerpiece of the discussion, the range frankly of bad options no matter how you look at Iraq. There's real chaos there, from the hostage taking to the hangings in Fallujah.

And as I think about this, Wolf, and I think as a lot of people start to think about it, come this summer, I don't think we'll be talking about the spring of Rice, if you will, but what I call the summer of Powell. I think there's really one person who the president can partner with who has the military, if you will, the diplomatic, even the political skills to help the president, not only within the U.S. broker consensus, but also internationally.

And it's not Don Rumsfeld and it's not Dick Cheney. It's not Condoleezza Rice. So I think you will hear a lot more from Secretary Powell, who obviously you had a very intriguing interview with today. And I think there's a real question out there, how engaged will he be? He certainly gave very different comments than you heard from Condoleezza Rice only in the last several days, in effect admitting that things were disquieting a little bit worrisome in terms of what's going on in Iraq.

BLITZER: All right, so how does it all play out politically in the battle between Bush and Kerry?

WATSON: One of the interesting things, it's not clear that John Kerry is going to benefit as George Bush's numbers go down. And we have seen the president's numbers go down from 60 several months ago down in the 50s, now down to the 40s.

(CROSSTALK)

WATSON: His job approval numbers go down to 40.

But still if you look at the polls, George Bush is still up by three or four points as of the last several weeks. And so I think a lot of people are saying to themselves, yes, we've got worries, yes, we're scared, but we are not automatically going to bet on this guy who we don't know a lot of.

In fact, this election, if you want to think about an analogy, it reminds me not of an election on U.S. soil, but actually an election five years ago in 1999, the election for prime minister in Israel, where you had a center-right prime minister, in this case Benjamin Netanyahu, who had real troubles, as you will recall, on the security front, and an economy that was really stuck. And he faced a war hero who was representing the center left party, Ehud Barak.

By the way, Barak ultimately wins, as people fundamentally say they want change. They don't say, we love Barak and his rule, but they say, we want a change and we trust this guy who has got a chestful of medals, if you will. Sound a lot like George Bush and John Kerry? Maybe. You may also be interested to know that John Kerry and Ehud Barak have the same political consultant, Bob Shrum.

BLITZER: Bob Shrum, I remember interviewing him in Tel Aviv right after that election.

Carlos Watson, thanks.

And for our viewers who want more of your insight, just go to CNN.com/Carlos, "The Inside Edge."

WATSON: If they want to hear it, here first.

BLITZER: You can hear it and then you can read more about it.

WATSON: I like that, both, two ways.

BLITZER: All right, Carlos, thanks very much.

WATSON: Good to join you.

BLITZER: On alert around the world. For U.S. allies, the Easter holiday weekend means heightened security and heightened fears. Also, celebrating the holiday from Rome to the Philippines, how Christians around the world are marking Good Friday.

And look at this. Stuck in the sky, two young girls left dangling -- yes, dangling -- above the Florida shoreline.

(COMMERCIAL BREAK)

BLITZER: French officials say they remain on alert for terrorists a day after a CIA tip forced the evacuation of a Paris commuter rail line. Authorities halted traffic on the line yesterday when the U.S. spy agency warned of a possible attack. The alert was lifted about an hour later when nothing suspicious was found. France is among several nations on high alert in the wake of terror threats.

We have two reports, beginning with our Rome bureau chief, Alessio Vinci.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (voice-over): The Italian government has identified more than 13,000 potential targets of a possible terrorist attack, including train stations and embassy and tourist sites.

"We are exposed to a terrorist threat, like all other European nations deployed in Iraq," he says. "But at this time we have no information regarding a specific imminent attack against civilian or religious targets."

Italy has currently close to 3,000 troops in Iraq as part of the U.S.-led coalition. They were recently engaged in heavy fighting during which scores of civilians were killed.

(on camera): Prime Minister Silvio Berlusconi says he will keep Italian troops in Iraq at least until the end of June and is likely to request additional funding from Parliament to extend their presence there beyond that, until he says an Iraqi government can maintain security on its own.

(voice-over): This kind of support, some fear, could give terrorists a reason to strike in Italy. It is a holiday season this week for the Roman Catholics, who celebrate Easter. Tourist locations are filled with visitors. There is a sizable police presence in places such as St. Peter's Square at the Vatican, identified by Italian officials as one potential target.

The pope was confident enough to tour St. Peter's Square recently in an open deck car. And Vatican officials point out if they are aware of real threat, he could not do it.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN SR. INTERNATIONAL CORRESPONDENT (voice- over): This is Sheila MacVicar in London.

For months, British officials have warned a terror attack in the U.K. is -- quote -- "inevitable." British police will not discuss specific measures, but security has been strengthened with a more visible police presence. And from London's underground, a new campaign to promote public awareness of security.

This week, the head of the Metropolitan Police said in an interview that -- quote -- Britain was "now in a state of real danger." His remarks were published a day after security sources confirmed British police had foiled a plot to explode a bomb laced with a potentially lethal chemical. And last week police seized half a ton of fertilizer which can be used as an explosive. Six men, all British, including a 17-year-old have now been charged with conspiring to carry out an attack.

Sheila MacVicar, CNN, London.

(END VIDEOTAPE)

BLITZER: Strangers spring into action to help two teenagers in trouble.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: There were 100 maybe, 100 people, like, you could see these people running from hotels, running from parking lots.

(END VIDEO CLIP)

BLITZER: A scary rescue for two parasailors after their rope snaps.

Tornado on tape, one of four twisters spotted across New Mexico. We'll get to that.

First, though, a quick look at some other news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Christians across the globe are marking Good Friday. Pilgrims march through Jerusalem's old city, retracking the path Jesus is said to have taken on the way to his crucifixion. And there was a passion play in Nazareth, the boyhood home of Jesus.

Good Friday in Rome. At the Vatican, Pope John Paul II heard the confessions of five men and six women and led a good Friday mass, as cardinals prepared to lead the station of the cross procession at the Roman Coliseum.

Painful piety. A controversial religious tradition continued in the Philippines, as worshipers lashed themselves, then were nailed to crosses. The crowd watching the crucifixion ceremony was said to be bigger this year, perhaps because of interest generated by Mel Gibson's crucifixion movie, "The Passion of the Christ."

Thrills and spills, a tradition of a different kind in Japan. Every seven years, the men in one town climb aboard large tree trunks and slide down muddy hills. It's thrilling to watch, but it can be very dangerous. Deaths and injuries are not uncommon.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: It was no typical day at the beach when a recreational adventure turned dangerous near Saint Petersburg, Florida. Beachgoers there are credited with rescuing two Georgia teenagers.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Chelsea Waddell and Theresa Blaneford were being towed out to sea when the cord connecting their parasail to the towboat snapped. As shown on this home video, the girls began drifting, dangling 200 to 250 feet in the sky toward a line of condominiums and hotels. They thought they were going to die.

JOHN THOMAS, WFTS REPORTER: When it snapped and whiplashed, what were you thinking?

BLANEFORD: I want down, pretty much. Like I was saying that pretty much the whole ride because it was really windy.

CHELSEA WADDELL, SURVIVED PARASAIL ACCIDENT: I fell off and the rope went around her leg.

THOMAS: You had to be terrified.

WADDELL: Oh, yes, very scared.

BLITZER: Beachgoers saw what was going on. One of them managed to grab the dangling cord from the parasail and the effort began to pull the girls down. As many as 100 people joined in, but because of the strong winds, the job still took half an hour.

TIM VANDORT, RESCUER: My oldest son is -- he's 15. And he grabbed the front of it in front of me. And he was actually lifted right off the ground.

BLITZER: Chelsea Waddell's father, John Waddell, the general manager of the Atlanta Thrashers hockey team, criticized the parasailing company, Get Wet Water Sports, for taking the girls up in such windy conditions.

He told "The Saint Petersburg Times" -- quote -- "You trust that people know their business." The operator of another parasail business on the beach said he had suspended operations and was surprised that Get Wet Water Sports had continued to operate.

THOMAS: Were you shocked when you saw them still flying?

VICTOR RONCHETTI, FLY-N-HIGH: Yes, I was. They should not have been out there in the first place.

THOMAS: Were you surprised by what happened?

RONCHETTI: No.

BLITZER: "The Tampa Tribune" quoted the manager of Get Wet Water Sports as saying the wind had diminished by the time the girls went out. The girls, while unhurt, say their experience has turned them off parasailing.

(END VIDEOTAPE)

BLITZER: The U.S. Coast Guard is responsible for inspecting and regulating parasail boats and their operators. There are no inspection requirements for parasail equipment such as tow lines.

Residents of Southeastern New Mexico are assessing the damage after tornadoes swept through the area. Tornadoes were spotted in open fields outside Roswell last night. At least one mobile home was destroyed, but no injuries are reported.

Our hot "Web Question of the Day" is this: Are things going the way you expected in Iraq one year after the fall of Saddam Hussein? We'll have the results for you when we come back.

Plus, no ordinary Easter bunny, exotic treats for the holiday.

First, though, today's news quiz. In which country did the first edible Easter bunnies appear, France, Germany, Switzerland, the United States? The answer coming up.

(COMMERCIAL BREAK)

BLITZER: There's an important development we're getting from our senior Pentagon correspondent, Jamie McIntyre. He's joining us now live.

Jamie, what have you learned?

MCINTYRE: Well, Wolf, there have been rumors circulating around Baghdad, reports all day, that some numbers of Americans may have been captured by insurgents. Up until this point, the Pentagon is saying they could not confirm those reports.

But a short time ago, we were told by a senior Pentagon officials that in fact a number of Americans, including two U.S. soldiers, are missing and unaccounted for after an attack on a fuel convoy today outside Baghdad. According to Pentagon officials, in that attack, one U.S. soldier was killed, 12 people were wounded. This was an attack with RPG and small-arms fire against a convoy of four fuel trucks.

And after sorting through the situation, they discovered that two American soldiers are unaccounted for. And the search is under way for them. As well, we're told several people we are told are civilian contract workers are also unaccounted for. Now, again, we can't confirm that they are being held or captured by enemy insurgent forces. But what we can say is, the Pentagon now believes that two U.S. soldiers are missing, unaccounted for, as well as undetermined number of civilian American contractors also missing after this attack on a convoy outside Baghdad today -- Wolf.

BLITZER: And what is very alarming, obviously, Jamie, is, this comes on the heels over the past day or two of several other non- Americans being kidnapped in Iraq, including some Japanese aid workers and journalists.

MCINTYRE: A dangerous new trend. And today, Dan Senor, who is the coalition spokesman in Baghdad said -- quote -- that the message he had for anyone who would take a foreign or foreign citizen, anybody hostage is the same, that it will not be tolerated, that the U.S. will not negotiate with any terrorist who takes a hostage or individual, that instead the U.S. would seek to capture or kill them -- Wolf.

BLITZER: Jamie McIntyre with disturbing news from the Pentagon -- Jamie, thanks very much.

We'll continue to monitor this story here on CNN in the coming hours, several people unaccounted for right now.

"LOU DOBBS TONIGHT" starts right now.

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 9, 2004 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
WOLF BLITZER, HOST: Happening now. Crisis in Iraq. In just a few minutes, the Secretary of State Colin Powell will join me to speak out on the hostilities, the hostages, and the upcoming handover of power. Stand by for hard news on WOLF BLITZER REPORTS.

War in Iraq, then and now.

GENERAL JOHN ABIZAID, U.S. CENTRAL COMMAND: One year later, we thought clearly a good sized fight going on here.

BLITZER: U.S. troops wage a bloody battle against old foes and a deadly new enemy.

Kidnapped. A cruel tactic targets civilians. I'll speak with Terry Anderson who spent years as a hostage in Lebanon.

Allies on alert. In Rome, stepped up security for holy week. In London, a growing belief that a terror attack is inevitable.

Nightmare ride. They were parasailing when the line suddenly snapped. We'll show you the dramatic rescue.

ANNOUNCER: This is WOLF BLITZER REPORTS for Friday, April 9, 2004.

(END VIDEOTAPE)

BLITZER: A halt in fighting on one front, significant progress on another, and a sobering reminder of the high cost of the war in Iraq. The Pentagon is reporting five more Americans killed in action. Two U.S. army soldiers, three United States marines. In just a moment, my special conversation with the Secretary of State Colin Powell about Iraq. First, though, an update on the battle lines.

(BEGIN VIDEOTAPE)

BLITZER: On this the one-year anniversary of the fall of Baghdad, the Iraqi capital. U.S. forces today pulling down posters in Firdos (ph) Square of Muqtada al-Sadr, the young Shiite cleric behind much of the current anti-American uprising.

The same location one year ago as American troops stormed Baghdad, toppling Saddam Hussein literally and figuratively. But today, a loud reminder that the coalition's work is far from over. A mortar shell fired at a major Baghdad hotel. It missed, hitting a tennis court instead. No one was hurt. The head of the U.S. central command sums up the situation.

ABIZAID: Certainly not the same level of intensity that we had during the movement phase of the war, but it is a counter-insurgency operation up here. It's an operation against an illegal militia force down in the south.

BLITZER: The operation includes the city of Kut. U.S. military officials report progress in taking back the town from al-Sadr's Mehdi army. They say American soldiers destroyed al-Sadr's office there and have secured strategic sites. And the officials say tribal leaders in Kut are on their side, disgusted by the violence of al-Sadr's uprising. In Fallujah, a lull after days of fierce fighting between U.S. marines and insurgents. American commanders have halted their offensive to allow negotiations between anti-American forces and Iraqi leaders. But...

BRIG. GEN. MARK KIMMITT, U.S. ARMY: The coalition remains firm that should these discussions break down, the coalition military forces are prepared to go back on the offensive operations and at no time during the suspension of offensive operations do soldiers forfeit the inherent right of self-defense.

BLITZER: And in the north, fresh hotspots, including Mosul where violence broke out after a demonstration.

(END VIDEOTAPE)

BLITZER: Behind the scenes of bombings and gun battles there's another story playing out, as well. The building of a new Iraq. CNN's Jim Clancy reports from Baghdad.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN CORRESPONDENT: Hundreds of thousands of Iraqi students have returned to refurbish classrooms where teachers are being paid a living wage. For the first time schools are getting computers. But students say the security situation makes it difficult for them to take advantage of the improvements.

UNIDENTIFIED FEMALE: I must say our driver who take us to college carry a gun which is not to protect us.

UNIDENTIFIED FEMALE: From this situation. I don't know what -- when it will be solve this problem. I don't know. And I am helpless. Believe me.

CLANCY: Some improvements don't hinge on security. Electricity has been restored to levels well above those before the coalition invaded Iraq to topple Saddam Hussein. Clean water, also widely available sometimes in rural areas that never had it before the coalition arrived. Newspapers and the media are flourishing. There are estimated to be around 200 newspapers published representing views that Iraqis were never able to hear before. Telephone communications not only restored but international links are available that were never possible before. And there are several major cell phone providers, as well.

Internet access, unheard of under Saddam Hussein is now open along with dozens of Internet cafes allowing users without computers to get on the Internet for communication and research. Iraqi hospitals, they have seen some improvement, although much more is expected on that front in the coming year. The U.S. is preparing to spend more than a billion dollars on new and existing healthcare facilities. One of the biggest changes Iraqis see is that their own security forces are being trained and ready. But they are not ready yet.

A year after arriving here some members of the U.S.-led coalition say they can't fix everything. They complain too many Iraqis are standing on the sidelines watching and waiting instead of seizing the opportunities already taking shape in their country. Jim Clancy, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: So how big a setback is the current wave of warfare in Iraq? Just a short while ago I spoke with the Secretary of State Colin Powell.

(BEGIN VIDEOTAPE)

BLITZER: Secretary, thanks very much for joining us. Honestly, did you expect a year ago when we saw that statue of Saddam Hussein go down in Baghdad, that a year later it would be as violent and as dangerous as it is right now for U.S. military personnel?

POWELL: No, but we knew that there would be those who would stick with the old regime, the old despotic regime that filled so many mass graves and caused such trouble. And those elements haven't been fully dealt with yet. But they will be dealt with.

We have remnants of the old regime in the Sunni Triangle, and you've seen them at work for the past week or so. And we have this situation down south with this cleric, Mr. al-Sadr, who has a militia that doesn't represent all of the Shia people. Nor does he represent all of the Shia people. And he's caused a great deal of trouble over the last week.

But our military commanders are slowly rolling this problem back. They've retaken al-Kut. They're on the outskirts of Fallujah in the Sunni Triangle, and I'm confident that they will bring the situation under control and that we'll get back on track with moving toward an Iraqi interim government to be in place by the end of June and for the reconstruction effort to go forward.

BLITZER: Former Senator Bob Kerrey says that this was all very predictable. A largely Christian army, a U.S. coalition-led army occupying a largely Muslim nation. Was this all predictable?

POWELL: No, I don't think it was all predictable. I think we knew it was going to be a difficult mission. We essentially took down a regime that had been there for many years, oppressed its people for many years. And in taking down that regime, we took down the political structure that supported it and the great part of the civil structure, as well. All of that has to be built back up. And I don't see it in those terms at all.

I think the Iraqi people want democracy, deserve democracy and we're going to help them achieve that goal of having a democracy. And when you ask the Iraqi people what they want, they want the same thing that our own citizens want. They want to live in peace. They want jobs. They want health care. And they want a better future. And we're determined to help them achieve those goals.

BLITZER: There has been a new and ominous development in the past couple days: kidnappings, hostage taking of people -- aid workers, journalists. What does this say to you, and are there, as far as you know, any Americans that have been taken hostage?

POWELL: The reports earlier of a couple of Americans that were taken hostage, some news reports, but I haven't had any confirmation that any Americans have been taken hostages -- taken hostage.

But there are hostages that have been taken. And you're familiar with the nations they're from: Japan, the United Kingdom and several others.

This shows that there are people out there -- think of what they're doing. They are going after those who were there to serve the Iraqi people. They're going after health care workers. They're going after people who were there to help with reconstruction, to help with fixing the sewer systems, sanitation system.

So we can't let these individuals determine the future of the country or determine the future of 25 million people. And so we will go after them, and we are going to encourage Iraqi citizens to help us identify who these people are, get them under control, bring them to justice and destroy them.

BLITZER: Is there any wiggle room in the June 30 hand over of sovereignty from the coalition authority to the Iraqis?

POWELL: We're sticking with June 30. We think it's the right date. We think it's achievable. Ambassador Brahimi, the United Nations representative, is in Baghdad now, working with Ambassador Bremer and the coalition -- or the governing council to look at models of what this interim government might look like.

And so we're going to continue to drive ahead with that work. There's no point delaying it. While the security situation gets stabilized by our military forces, let's keep driving straightforward with our reconstruction efforts and with the political process.

BLITZER: Is June 30 a goal, or is that set in concrete?

POWELL: It is our goal. It is an achievable goal, and it is the goal that we're working towards.

BLITZER: Mr. Secretary, you served with distinction in Vietnam. Senator Kennedy says Iraq has become President Bush's Vietnam. Has it?

POWELL: No. It's one of these interesting and charming (ph) but rather unpleasant labels. Vietnam was another time, another place, several presidents ago. And there is no parallel here. And we should not try to contaminate the work we are doing, the important, vital work we are doing now, by trying to hang ancient labels on it.

Let's view the situation for what it is. A dictator is gone. That regime is gone. He's in jail. What we are trying to do is build a democracy. We are there for the best purposes.

And what is happening right now is that there are remnants of this regime. There are terrorists. And there are individuals who have no concept of democracy, don't want to see freedom for the people of Iraq, don't want to see anything other than a new dictator take over, who are trying to keep democracy from happening, trying to thwart our reconstruction efforts.

We must not let that happen, and we must not suddenly lose -- lose the energy needed for this task by dragging out old labels such as "This is Vietnam. This is Beirut." This is Iraq, 2004, and we're going to help the Iraqi people to a better life.

BLITZER: Mr. Secretary, thanks very much for joining us.

POWELL: Thank you, Wolf.

(END VIDEOTAPE)

BLITZER: And here's your chance to weigh in on this important story. Our Web question of the day is this, "are things going the way you expected in Iraq one year after the fall of Saddam Hussein." You can vote right now, go to cnn.com/wolf. We'll have the results for you later this broadcast.

Iraqi insurgents working on the offensive and using a new tactic to target civilians. An update on the hostages being held right now.

Plus, insight from someone who is experienced this type of terror firsthand. I'll speak with former Beirut hostage Terry Anderson. He'll join me live.

Declassifying a key White House document. Will it reveal new clues about Osama bin Laden? And what the Bush administration may have known prior to 9/11?

Plus this...

(BEGIN VIDEO CLIP)

QUESTION: What were you thinking when it snapped?

UNIDENTIFIED FEMALE: That I was going to die. I really did.

(END VIDEO CLIP)

BLITZER: A horrifying ride; parasailers in a panic after their rope snaps. The dramatic rescue. That is coming up later.

(COMMERCIAL BREAK)

BLITZER: As U.S. and coalition troops battle various enemies on multiple fronts in Iraq, the insurgents are cruelly targeting foreign noncombatants. The latest weapon, kidnapping. CNN's Brian Todd reports.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): A new tactic in Iraq, perhaps inevitable, shuddering nonetheless. Three young Japanese nationals, blind folded, terrified, under threat of being burned alive if Japan does not pull its forces out of Iraq. The prime minister shows his resolve.

JUNICHIRO KOIZUMI, JAPANESE PRIM MINISTER (through translator): We will not bow to any despicable terrorist threats.

TODD: This week alone, at least 12 foreign civilians have been kidnapped in different incidents throughout Iraq. Some have been released, but experts say this signifies a shift to an ominous method of warfare.

BRIAN JENKINS, TERRORISM EXPERT RAND CORP: To choreograph this violence. To make these threats as they have done, burning people alive, to videotape all of this, this is true terrorism and its calculated to create these effects and it will create a crisis.

TODD: Experts we spoke to, including two former members of the U.S. special forces, say this tactic could actually be effective in driving a wedge in the coalition. One says targeting Japan, where public resistance to joining the coalition force has been strong, embodies the same logic as the commuter train bombings in Madrid. An effort to shake a smaller less powerful and divided member of the coalition. Some believe it has collateral benefits.

KEN POLLACK, CNN ANALYST: Even if these hostage takers can't get the United States and its coalition allies to withdraw from Iraq, they may be hoping that holding hostages will give them the same kind of leverage and ability to humiliate the United States and its coalition powers that the Hezbollah gained from the same method in Lebanon.

TODD: What about the century old motivation for kidnapping. Cold hard cash? Still used with success by rebels in Latin America. It also became popular in Iraq, where outlaws took advantage of the lawlessness that followed the fall of Saddam Hussein.

But those abductions for ransom targeted wealthy Iraqis, not foreigners. The experts we have spoken with say the current wave of kidnapping appears for now to be strictly political.

A former U.S. special forces member reminds foreign civilians in Iraq to be especially cautious of roadblocks. Don't drive near disabled vehicle vehicles. Look around when you leave your compound in the morning and move fast. Brian Todd, CNN, Washington. (END VIDEOTAPE)

BLITZER: Two decades ago during Lebanon's bloody civil war dozens of foreigners were kidnapped. Most of them to Shiite militants tied to an Hezbollah group. Terry Anderson was the chief Mideast correspondent for the Associated Press when he was grabbed at gunpoint in Beirut in 1985. He spent almost seven years in captivity.

Terry Anderson is joining us now live from New York. Terry, thanks very much for joining us. When you hear what is going on in Iraq now, this new tactic, kidnapping, hostage-taking, what goes through your mind?

TERRY ANDERSON, FMR. BEIRUT HOSTAGE: Well it's not surprising. The same kind of conditions in Iraq today as were in Lebanon then, total chaos, no central government authority, no effective police force or army. Dozens of groups of militia wandering around. I'm not surprised that they are trying this tactic out again. Look, this is not for practical gain. The kidnappers in general learned in Lebanon eventually that they couldn't get a government to bow to their wishes just as the Japanese prime minister is saying he can't give in. Nonetheless, they are putting terrible pressure on people. Look at that film. Look at those terribly scared young people. One of them is 18 years old. It's just horrible. How would you like to be the government that has to say no, we will not trade for you. That's terrible pressure they are putting on.

BLITZER: All of us, of course, remember among these people who have been taken hostage, right now kidnapped, there are aid workers, humanitarian workers but there are also some journalists and how can we forget Daniel Pearl who was an American journalist who was kidnapped in Pakistan and eventually executed?

ANDERSON: I don't want to draw that parallel because it's too frightening. The people that went after Daniel Pearl had no intention of trading him for anything. They knew they were going to kill him from the beginning. It was a pure terror tactic. I'm with the Committee to Protect Journalists and we worry about the journalists in Iraq. They are professional. They are there because they have to. It's the biggest story in the world. It is vitally important that people see what is going on there and learn what is really going on there.

We try to help them, we support them, we try to give them training, we have a book out on how to report from dangerous places and Iraq right now is the most dangerous place in the world for a journalist. I worry more about the civilians. The aid workers, the construction workers, all the people who have been brought over there to help in the so-called reconstruction effort. What are they supposed to do? How can they operate? Then you always get in a situation like this, young idealistic people who want to help with the Red Cross or with some well meaning organization, all I can tell them is go back to your hotel and pack a bag and sit on it until you can get to the airport because this is not going to get better, not that I can see.

BLITZER: The argument, the other argument is, if that happens, the terrorists will have then won?

ANDERSON: Well, no, it's a matter of personal safety. If you don't have to be there, if you are not a professional, don't do it. This is not a game. This is terrible. What is it doing to the families of those Japanese civilians? These are terrible people. When they threaten to burn these kids alive, we have to take that seriously. These are terrorists in the true meaning of the word and you have to take that seriously. If you don't have to be there, don't.

BLITZER: I know that you -- I know that you relive the horror of what you went through 20 years ago or so in Lebanon. And you thought a great deal about it. Take us to those first few days when you were taken captive. What were you going through? What might those who are going through in Iraq right now, the kidnapped people, what are they going through?

ANDERSON: Well, of course, there's a fear and that terrible sense of helplessness, there's nothing you can do or say that will help the situation. You know, most adults have never been in that situation. They have never been in a place where they are completely helpless to affect their own fate or anybody else's. You are just a piece of meat. Hundreds of humiliations, when you go to the bathroom, when you eat, when you get a drink of water. Plus these people seem to be deliberately trying to frighten those students, those aide workers.

I mean, I don't know whether that was an act for the camera. They are certainly capable of that or whether that is really the way they are being treated. I hope not. I hope that was just an act for the terror effect on the tape. But, yes, it's a horrible situation. You feel guilty that you have done something so stupid as to get kidnapped and you know it's devastating your family and there's absolutely nothing you can do about it, nothing.

BLITZER: Terry Anderson, we're so happy you are OK. You are back home safe and sound after that ordeal you went through. Thanks very much for sharing some thoughts with us.

ANDERSON: Thank you, Wolf.

BLITZER: Going public with a secret document. What else is in the memo that prompted heated discussion at the 9/11 hearings? We'll have details.

Major European cities step up security. What has officials so nervous right now?

Plus, ancient rites and an ailing pope. Marking Good Friday in Rome and around the world.

(COMMERCIAL BREAK)

BLITZER: The White House says it's working to declassify an August 6, 2001 intelligence memo titled "bin Laden determined to attack inside the United States." The memo was mentioned during National Security Adviser Condoleezza Rice's testimony to the 9/11 Commission. Our White House correspondent Suzanne Malveaux is near the president's ranch in Crawford, Texas. She's joining us now live with some new information -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, officials tell us don't expect to see the brief declassified today. Perhaps in the next couple of days, it's going to take some more time. The White House is eager to get it declassified and to get on top of this controversy. It's all over that August 6, 2001 presidential daily brief that was given to the president at his Crawford ranch a month before the September 11 attacks.

It was in response to the president inquiring about the potential of al Qaeda attacking in the United States because it was such a high state of alert of Americans being attacked overseas. Now, the title created some alarm among viewers and also Bush critics at Rice's testimony. It is called "bin Laden determined to attack inside the U.S." Some commissioners questioning Rice rather harshly suggesting this could have been a warning for the September 11 attacks. Rice saying emphatically that they didn't have those kind of details. As you can imagine, both sides are eager to make their point to get the document out to the public -- Wolf.

BLITZER: Suzanne Malveaux in Crawford, Texas. Thanks very much.

One day after hearing testimony from former president Clinton, the 9/11 Commission heard testimony from former vice president Al Gore today. Like Clinton, Gore testified behind closed doors and not under oath. After the three-hour session was over the commission issued a statement saying the former vice president's testimony was candid and forthcoming and it thanked him for what it called his continued cooperation.

Now the fighting since suspended in Fallujah but that's not the case for other cities across Iraq where troops continue to battle fierce opposition. Where does the U.S. go from here?

Plus will the violence in Iraq affect the president politically? Carlos Watson joins me for the inside edge with new poll numbers out today.

And allies on alert around the world stepped up security for the holy week.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN. I'm Wolf Blitzer in Washington.

We're following a developing story from one year in Iraq after the symbol of Saddam Hussein's regime came down.

U.S. military forces in Iraq have put their offensive against insurgents in Fallujah on hold while Iraqi officials try to negotiate an end to hostilities there. Meanwhile, American forces report progress in taking the southern city of Kut back from a Shiite militia. We'll have much more on Iraq with an in-depth report from Baghdad in just a moment.

Former Enron CEO Jeffrey Skilling is reportedly hospitalized. The Associated Press quotes police as saying Skilling was taken in for observation in the middle of the night after allegedly exhibiting bizarre behavior in a bar and on the street. The AP says he was pulling on people's clothes and accusing them of being FBI agents and of following him. Skilling has pleaded not guilty to charges of fraud and insider trading.

A yearlong mission in space. NASA is considering a Russian proposal to double the time crews stay -- they stay on the International Space Station. NASA says part of the reason is President Bush's proposal for manned Mars missions. Those would last more than a year.

We continue to monitor events in Iraq on this first anniversary of the fall of Baghdad.

As Julian Manyon of Britain's International Television News reports, the Iraqi capital still sometimes looks like a war zone.

(BEGIN VIDEOTAPE)

JULIAN MANYON, ITN REPORTER (voice-over): On the outskirts of Baghdad, American vehicles burn. On the anniversary of the fall of the Iraqi capital, it's now the insurgents who are on the offensive.

To the west of Baghdad, fighting has broken out again in the town of Fallujah. That's despite a coalition announcement that the Marine offensive would halt to allow humanitarian efforts and talks with the insurgents to take place.

BRIG. GEN. MARK KIMMITT, U.S. DEPUTY CHIEF OF OPERATIONS: It's important to understand that the coalition remains firm that should these discussions break down that the coalition military forces are prepared to go back on the offensive operations.

MANYON: For those who plan and desired this war, the toppling of Saddam's giant statue in the center of Baghdad was a moment of triumph, but anyone who expected celebrations in the square today was disappointed.

(on camera): This square which briefly symbolized the victory of Saddam Hussein, is now empty and under heavy American guard. The American Humvee jeep with a loudspeaker on top is telling people in Arabic that the square is locked down and that anyone seen entering it in a car or carrying a weapon will be shot on sight.

(voice-over): U.S. troops climbed the plank where Saddam's statue used to stand to remove fresh posters of the Shiite militant leader Muqtada al-Sadr. Later, a mortar round landed near the square, one of at least half a dozen fired into the city center today.

At this anniversary of what was supposed to be liberation, many Iraqis are now turning against the coalition. For the first time in living memory, Sunni and Shia worshipers prayed together in one of Baghdad's largest mosque and denounced the U.S. operation in Fallujah. The speaker demanded that the occupying forces leave Iraq.

In one of Baghdad's Shiite slums, a massive demonstration chanted "victory to Muqtada al-Sadr." And al-Sadr himself issued a statement calling George Bush an enemy and warning that if U.S. forces do not leave Iraq, they will face a revolution. Meanwhile, the three Japanese hostages are still under threat of death from their captors. A year after victory, the coalition's woes are piling up.

Julian Manyon, ITV News, Baghdad.

(END VIDEOTAPE)

BLITZER: And let's get an update on the fighting right now from our senior Pentagon correspondent, Jamie McIntyre.

Jamie, there has been a cease-fire supposedly brokered in Fallujah. What do we know about its status?

JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: Well, Wolf, technically, that pause or cease-fire as you said remains in effect.

But shortly after it went into effect, some of the Marines in Fallujah said they were taking enemy fire, so they were returning fire. But the Pentagon insists that's part of the inherent right of self-protection and that the offensive -- pause in offensive operations remains in effect. That was designed to allow members of the Iraqi Governing Council to negotiate with local leaders, also to allow the residents there to tend to their wounded and get some humanitarian aid.

But, Wolf, as night hit Fallujah tonight, there are reports that what appears to be AC-130 gunships firing at targets in Fallujah is under way. So it is really unclear how much of a cease-fire this pause really is.

BLITZER: Jamie McIntyre at the Pentagon -- Jamie, thank you very much.

President Bush had high praise for the testimony of his national security adviser, Condoleezza Rice, before the 9/11 Commission, but how does America feel? Look at this. A new CNN/"TIME" poll was taken yesterday, the day of her testimony; 48 percent of those polled said they believe Bush did all he could to fight terrorism before 9/11; 40 percent said no. Last month, 42 percent said the president did all he could, while 54 percent said no; 49 percent now say they approve of the way the president is handling his job; 47 percent disapprove.

With more now on the political impact of the 9/11 Commission's investigation and more, CNN political analyst Carlos Watson joins me now with "The Inside Edge."

Carlos, the 9/11 Commission, all eyes were on Condoleezza Rice yesterday. What really happened?

CARLOS WATSON, CNN POLITICAL ANALYST: She gave a solid performance, but despite what we see as a little bit of movement, it's not a huge movement, where you move 20 points of one direction in another.

Fundamentally, I don't think Americans are as focused and I don't think they will be as the election comes close on what happened yesterday as much as what is going on now in Iraq and what is likely to happen this summer maybe and this fall here in the U.S., the fear about more terrorist incidents.

And what that says to me is that Iraq is really going to become the centerpiece of the discussion, the range frankly of bad options no matter how you look at Iraq. There's real chaos there, from the hostage taking to the hangings in Fallujah.

And as I think about this, Wolf, and I think as a lot of people start to think about it, come this summer, I don't think we'll be talking about the spring of Rice, if you will, but what I call the summer of Powell. I think there's really one person who the president can partner with who has the military, if you will, the diplomatic, even the political skills to help the president, not only within the U.S. broker consensus, but also internationally.

And it's not Don Rumsfeld and it's not Dick Cheney. It's not Condoleezza Rice. So I think you will hear a lot more from Secretary Powell, who obviously you had a very intriguing interview with today. And I think there's a real question out there, how engaged will he be? He certainly gave very different comments than you heard from Condoleezza Rice only in the last several days, in effect admitting that things were disquieting a little bit worrisome in terms of what's going on in Iraq.

BLITZER: All right, so how does it all play out politically in the battle between Bush and Kerry?

WATSON: One of the interesting things, it's not clear that John Kerry is going to benefit as George Bush's numbers go down. And we have seen the president's numbers go down from 60 several months ago down in the 50s, now down to the 40s.

(CROSSTALK)

WATSON: His job approval numbers go down to 40.

But still if you look at the polls, George Bush is still up by three or four points as of the last several weeks. And so I think a lot of people are saying to themselves, yes, we've got worries, yes, we're scared, but we are not automatically going to bet on this guy who we don't know a lot of.

In fact, this election, if you want to think about an analogy, it reminds me not of an election on U.S. soil, but actually an election five years ago in 1999, the election for prime minister in Israel, where you had a center-right prime minister, in this case Benjamin Netanyahu, who had real troubles, as you will recall, on the security front, and an economy that was really stuck. And he faced a war hero who was representing the center left party, Ehud Barak.

By the way, Barak ultimately wins, as people fundamentally say they want change. They don't say, we love Barak and his rule, but they say, we want a change and we trust this guy who has got a chestful of medals, if you will. Sound a lot like George Bush and John Kerry? Maybe. You may also be interested to know that John Kerry and Ehud Barak have the same political consultant, Bob Shrum.

BLITZER: Bob Shrum, I remember interviewing him in Tel Aviv right after that election.

Carlos Watson, thanks.

And for our viewers who want more of your insight, just go to CNN.com/Carlos, "The Inside Edge."

WATSON: If they want to hear it, here first.

BLITZER: You can hear it and then you can read more about it.

WATSON: I like that, both, two ways.

BLITZER: All right, Carlos, thanks very much.

WATSON: Good to join you.

BLITZER: On alert around the world. For U.S. allies, the Easter holiday weekend means heightened security and heightened fears. Also, celebrating the holiday from Rome to the Philippines, how Christians around the world are marking Good Friday.

And look at this. Stuck in the sky, two young girls left dangling -- yes, dangling -- above the Florida shoreline.

(COMMERCIAL BREAK)

BLITZER: French officials say they remain on alert for terrorists a day after a CIA tip forced the evacuation of a Paris commuter rail line. Authorities halted traffic on the line yesterday when the U.S. spy agency warned of a possible attack. The alert was lifted about an hour later when nothing suspicious was found. France is among several nations on high alert in the wake of terror threats.

We have two reports, beginning with our Rome bureau chief, Alessio Vinci.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (voice-over): The Italian government has identified more than 13,000 potential targets of a possible terrorist attack, including train stations and embassy and tourist sites.

"We are exposed to a terrorist threat, like all other European nations deployed in Iraq," he says. "But at this time we have no information regarding a specific imminent attack against civilian or religious targets."

Italy has currently close to 3,000 troops in Iraq as part of the U.S.-led coalition. They were recently engaged in heavy fighting during which scores of civilians were killed.

(on camera): Prime Minister Silvio Berlusconi says he will keep Italian troops in Iraq at least until the end of June and is likely to request additional funding from Parliament to extend their presence there beyond that, until he says an Iraqi government can maintain security on its own.

(voice-over): This kind of support, some fear, could give terrorists a reason to strike in Italy. It is a holiday season this week for the Roman Catholics, who celebrate Easter. Tourist locations are filled with visitors. There is a sizable police presence in places such as St. Peter's Square at the Vatican, identified by Italian officials as one potential target.

The pope was confident enough to tour St. Peter's Square recently in an open deck car. And Vatican officials point out if they are aware of real threat, he could not do it.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN SR. INTERNATIONAL CORRESPONDENT (voice- over): This is Sheila MacVicar in London.

For months, British officials have warned a terror attack in the U.K. is -- quote -- "inevitable." British police will not discuss specific measures, but security has been strengthened with a more visible police presence. And from London's underground, a new campaign to promote public awareness of security.

This week, the head of the Metropolitan Police said in an interview that -- quote -- Britain was "now in a state of real danger." His remarks were published a day after security sources confirmed British police had foiled a plot to explode a bomb laced with a potentially lethal chemical. And last week police seized half a ton of fertilizer which can be used as an explosive. Six men, all British, including a 17-year-old have now been charged with conspiring to carry out an attack.

Sheila MacVicar, CNN, London.

(END VIDEOTAPE)

BLITZER: Strangers spring into action to help two teenagers in trouble.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: There were 100 maybe, 100 people, like, you could see these people running from hotels, running from parking lots.

(END VIDEO CLIP)

BLITZER: A scary rescue for two parasailors after their rope snaps.

Tornado on tape, one of four twisters spotted across New Mexico. We'll get to that.

First, though, a quick look at some other news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Christians across the globe are marking Good Friday. Pilgrims march through Jerusalem's old city, retracking the path Jesus is said to have taken on the way to his crucifixion. And there was a passion play in Nazareth, the boyhood home of Jesus.

Good Friday in Rome. At the Vatican, Pope John Paul II heard the confessions of five men and six women and led a good Friday mass, as cardinals prepared to lead the station of the cross procession at the Roman Coliseum.

Painful piety. A controversial religious tradition continued in the Philippines, as worshipers lashed themselves, then were nailed to crosses. The crowd watching the crucifixion ceremony was said to be bigger this year, perhaps because of interest generated by Mel Gibson's crucifixion movie, "The Passion of the Christ."

Thrills and spills, a tradition of a different kind in Japan. Every seven years, the men in one town climb aboard large tree trunks and slide down muddy hills. It's thrilling to watch, but it can be very dangerous. Deaths and injuries are not uncommon.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: It was no typical day at the beach when a recreational adventure turned dangerous near Saint Petersburg, Florida. Beachgoers there are credited with rescuing two Georgia teenagers.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Chelsea Waddell and Theresa Blaneford were being towed out to sea when the cord connecting their parasail to the towboat snapped. As shown on this home video, the girls began drifting, dangling 200 to 250 feet in the sky toward a line of condominiums and hotels. They thought they were going to die.

JOHN THOMAS, WFTS REPORTER: When it snapped and whiplashed, what were you thinking?

BLANEFORD: I want down, pretty much. Like I was saying that pretty much the whole ride because it was really windy.

CHELSEA WADDELL, SURVIVED PARASAIL ACCIDENT: I fell off and the rope went around her leg.

THOMAS: You had to be terrified.

WADDELL: Oh, yes, very scared.

BLITZER: Beachgoers saw what was going on. One of them managed to grab the dangling cord from the parasail and the effort began to pull the girls down. As many as 100 people joined in, but because of the strong winds, the job still took half an hour.

TIM VANDORT, RESCUER: My oldest son is -- he's 15. And he grabbed the front of it in front of me. And he was actually lifted right off the ground.

BLITZER: Chelsea Waddell's father, John Waddell, the general manager of the Atlanta Thrashers hockey team, criticized the parasailing company, Get Wet Water Sports, for taking the girls up in such windy conditions.

He told "The Saint Petersburg Times" -- quote -- "You trust that people know their business." The operator of another parasail business on the beach said he had suspended operations and was surprised that Get Wet Water Sports had continued to operate.

THOMAS: Were you shocked when you saw them still flying?

VICTOR RONCHETTI, FLY-N-HIGH: Yes, I was. They should not have been out there in the first place.

THOMAS: Were you surprised by what happened?

RONCHETTI: No.

BLITZER: "The Tampa Tribune" quoted the manager of Get Wet Water Sports as saying the wind had diminished by the time the girls went out. The girls, while unhurt, say their experience has turned them off parasailing.

(END VIDEOTAPE)

BLITZER: The U.S. Coast Guard is responsible for inspecting and regulating parasail boats and their operators. There are no inspection requirements for parasail equipment such as tow lines.

Residents of Southeastern New Mexico are assessing the damage after tornadoes swept through the area. Tornadoes were spotted in open fields outside Roswell last night. At least one mobile home was destroyed, but no injuries are reported.

Our hot "Web Question of the Day" is this: Are things going the way you expected in Iraq one year after the fall of Saddam Hussein? We'll have the results for you when we come back.

Plus, no ordinary Easter bunny, exotic treats for the holiday.

First, though, today's news quiz. In which country did the first edible Easter bunnies appear, France, Germany, Switzerland, the United States? The answer coming up.

(COMMERCIAL BREAK)

BLITZER: There's an important development we're getting from our senior Pentagon correspondent, Jamie McIntyre. He's joining us now live.

Jamie, what have you learned?

MCINTYRE: Well, Wolf, there have been rumors circulating around Baghdad, reports all day, that some numbers of Americans may have been captured by insurgents. Up until this point, the Pentagon is saying they could not confirm those reports.

But a short time ago, we were told by a senior Pentagon officials that in fact a number of Americans, including two U.S. soldiers, are missing and unaccounted for after an attack on a fuel convoy today outside Baghdad. According to Pentagon officials, in that attack, one U.S. soldier was killed, 12 people were wounded. This was an attack with RPG and small-arms fire against a convoy of four fuel trucks.

And after sorting through the situation, they discovered that two American soldiers are unaccounted for. And the search is under way for them. As well, we're told several people we are told are civilian contract workers are also unaccounted for. Now, again, we can't confirm that they are being held or captured by enemy insurgent forces. But what we can say is, the Pentagon now believes that two U.S. soldiers are missing, unaccounted for, as well as undetermined number of civilian American contractors also missing after this attack on a convoy outside Baghdad today -- Wolf.

BLITZER: And what is very alarming, obviously, Jamie, is, this comes on the heels over the past day or two of several other non- Americans being kidnapped in Iraq, including some Japanese aid workers and journalists.

MCINTYRE: A dangerous new trend. And today, Dan Senor, who is the coalition spokesman in Baghdad said -- quote -- that the message he had for anyone who would take a foreign or foreign citizen, anybody hostage is the same, that it will not be tolerated, that the U.S. will not negotiate with any terrorist who takes a hostage or individual, that instead the U.S. would seek to capture or kill them -- Wolf.

BLITZER: Jamie McIntyre with disturbing news from the Pentagon -- Jamie, thanks very much.

We'll continue to monitor this story here on CNN in the coming hours, several people unaccounted for right now.

"LOU DOBBS TONIGHT" starts right now.

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