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CNN Wolf Blitzer Reports

John Kerry Gets Little Bounce From DNC; Terror Level Raised in New York, New Jersey, Wasington D.C.

Aired August 02, 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.


WOLF BLITZER, HOST: (UNINTELLIGIBLE) a candidates concern, John Kerry hits the trail with a thud instead of bounce. Why haven't his poll numbers gone up?
Stand by for hard news on Wolf Blitzer reports.

(BEGIN VIDEO TAPE)

ANNOUNCER: After the alert from Wall Street to Washington.

UNIDENTIFIED MALE: You have just have to place your faith in, you know, (UNINTELLIGIBLE) are taking care of you.

UNIDENTIFIED MALE: I'm not going to be live my life in fear. We've come to far.

ANNOUNCER: American's respond to a terror threat.

The president says the nation is in danger.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Today I'm asking Congress to create the position of the national intelligence director.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The time to act is now, not later.

ANNOUNCER: out in Iraq: Is the U.S. in a final showdown with a radical Shiite cleric.

From missing to murder, Utah police make an arrest in the case of Lori Hacking.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Monday, August 2, 2004.

BLITZER: Al Qaeda may have this nation's economy in its sights, and many Americans went to work today wonder if they are targets. Security is being stepped up at key financial centers in New York, along with Newark and Washington, D.C. The latest terror threat may involve truck bombs and the Holland Tunnel into New York City is now closed to inbound commercial traffic. Here in the nation's capital, police are keeping a close eye on the World Bank and International Monetary Fund along with government buildings and national landmarks. Is Wall Street being turn a fortress?

We'll have a live report from the New York Stock exchange. That's coming up.

CNN's Elaine Quijano is over at the White House where the president has now endorsed an intelligence overhaul. But we begin with CNN justice correspondent Kelli Arena with chilling detail on what officials know about the threat and, more worrisome, what they don't know -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: The level of concern is high. Residents, as you said, in New York and Washington witnessing a visible reaction to the latest intelligence. But there's still nothing defensive on whether al Qaeda is operational or when it plans to attack.

(BEGIN VIDEOTAPE)

ARENA (voice-over): With enhanced security in place around the named targets, counterterrorism officials believe al Qaeda conducted surveillance inside the five buildings, some of it done within the last few months.

TOM RIDGE, HOMELAND SECURITY SECRETARY: It indicates that they've taken a long, hard look at several sights.

ARENA: Sources say there are event and date references in the material confiscated in Pakistan, along with about 500 computer images, including photographs, drawings and layouts. These are helping investigators determine precisely when the surveil was conducted.

COMMISSIONER RAY KELLY, NEW YORK POLICE: This is an intelligence report by the enemy, you might say, but not tied at this moment in time to any operational plan that we're aware of.

ARENA: Investigators are trying to find out who carried out the surveillance by scanning employee and visitor records from the various sites. And to determine whether those individuals are still in the United States. But officials say there's been no headway made concerning the timing of a possible attack.

KELLY: Although I don't have real concrete information around how long this is going to last.

ARENA: The fact the new intelligence was found in connection with the arrest of an alleged al Qaeda expert, an accused operative, Ahmed Ghailani is very troubling to some experts.

MICHAEL HERSHMAN, HOMELAND SECURITY EXPERT: I think it is an imminent threat because the individual Ghailani who was arrested two weeks ago in Pakistan, had the documents with him, had over $5 million and was known to be training agents in Pakistan to carry out suicide missions in the United States and the U.K.

(END VIDEOTAPE)

ARENA: Experts also point out al Qaeda remains a very flexible organization. Pardon one target and they'll plan to attack another -- Wolf.

BLITZER: Kelli Arena, thanks very much.

For now, one of the targets to be the New York Stock Exchange is on the list for extra security.

CNN's Chris Huntington is there. He's been taking the pulse of wall street.

(BEGIN VIDEOTAPE)

CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): The New York Stock Exchange put on a brave face this morning. The big board's new chief executive John Thain, accompanied by New York Senator Charles Schumer greeted traders and exchange staff as they showed up for work amid heightened terror concerns.

JOHN THAIN, CEO NEW YORK STOCK EXCHANGE: We are open for business. We intend to keep it functioning.

SEN. CHARLES SCHUMER (D), NEW YORK: The terrorists want to scare us. If every time they made a threat we stop doing what we're doing, they'd win. And so, we feel it is almost imperative for everybody to go about their jobs.

HUNTINGTON: Inside the exchange the mood was defiant with New York Governor George Pataki, accompanying New York Mayor Michael Bloomberg to ring the opening bell. Technically, the terror alert level in New York City remains at level orange and it's been that way since the 9/11 attacks. But security immediately outside the Stock Exchange was visibly beefed up with heavily armed guards and new traffic checkpoints to a new perimeter that extends several blocks around Wall Street. and there was security around Prudential headquarters in New Jersey and around Citigroup's main offices in Manhattan and Queens. All of the financial institutions targeted in the latest terror threat opened for business and urged their employees to come to work. And most did so, even if they were a bit uneasy.

UNIDENTIFIED MALE: I'm a little bit more apprehensive, but I'm not nervous, per se.

UNIDENTIFIED MALE: I know people are just traveling and traveling. I notice people are a lot more quiet.

UNIDENTIFIED MALE: I think it's probably today the safest building today in New York City.

Mayor Bloomberg toured the Citigroup headquarters with first lady Laura Bush. He says security has been stepped up at the identified targets, he pledged to keep a vigilant watch else where in the city, and he urged New Yorkers to do the same.

MAYOR MICHAEL BLOOMBERG, NEW YORK: It is a good wake-up call to everybody in every building. Just because your name wasn't on the list doesn't mean you shouldn't take precautions. And the more precautions you take, the safer you will be.

(END VIDEOTAPE)

HUNTINGTON: Now, the latest terror threats were specific as to location, but not as to timing. Mayor Bloomberg made it closer they would maintain the security in New York City for as long as necessary and at as high a level as necessary. And Wolf, for folks in the financial industry, that means getting back to business among new threats for the unforeseeable future.

BLITZER: Chris Huntington, reporting from Wall Street. Thank, Chris, very much.

Sounding a urgent note on the terror threat, the president embraced key recommendations of the 9/11 Commission.

But his campaign rival is calling for even quicker action.

Let's go to CNN's Elaine Quijano. She's over at the White House -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good evening, Wolf.

President Bush, says reforms have already been put into place. He points to the creation of the Homeland Security Department and also what he says is better information sharing between the FBI and CIA. At the same time, the president said he agrees with many of the September 11 Commission recommendations and today said he would act.

(BEGIN VIDEOTAPE)

QUIJANO (voice-over): Less than two weeks after the September 11 Commission released its report, President Bush asked Congress to create a new national intelligence director and a national counterterrorism center as the panel recommended.

BUSH: We are a nation in danger. We're doing everything we can in our power to confront the danger.

QUIJANO: Senior administration officials say the new director would coordinate 15 intelligence agencies, now a job handled by the head of the CIA. But in a departure from the commission's recommendations, Mr. Bush said that new position should remain outside the White House, in part, to ensure you autonomy.

MICHAEL O'HANLON, BROOKINGS INSTITUTION: The basic idea is you want the president to hear bad news, if there is bad news, even if it runs against the presidents policies. You don't want someone deliberately manufacturing intelligence or perhaps more realistic -- sort of slanting intelligence. QUIJANO: The president's announcements come against the backdrop of increasing criticism by his Democratic opponent, John Kerry, who says the White House has not moved quickly enough to reform the intelligence community. Kerry also says the administration's actions in carrying out the war on terror have focused an I animosity and anger against the U.S., an idea the president rejects.

BUSH: It is a ridiculous notion to assert that because the United States is on the offense more people want to hurt us. We're on the offense because people do want to hurt us.

(END VIDEOTAPE)

QUIJANO: Now, White House Chief of Staff Andy Card was asked about the role politics played in the president's decision. He insisted bluntly this had nothing to do with politics, that it had to do with better coordination of intelligence -- Wolf.

BLITZER: Elaine, Quijano, over at the White House. Thanks, Elaine, very much.

The Democratic presidential John Kerry says he's pleased the president has endorsed some of the 9/11 panel's recommendations, but he wants even quicker action.

(BEGIN VIDEO CLIP)

KERRY: If the president had a sense of urgency about this director of intelligence and about the needs to strengthen America, he would call the Congress back and get the job done now. That's what we need to do. That's the urgency that exists in order to make America as safe as possible. The terror alert yesterday just underscores that if we're being serious about this, we have to move on every possible option to make our nation as safe as possible. The time to act is now, not later.

(END VIDEO CLIP)

BLITZER: And joining us now with more on the situation in New York, the former New York City police commissioner, Bernard Kerik. Commissioner thanks very much for joining us.

One of the key questions -- the key question, unanswered by all the new intelligence, is when. Do you have any indication what -- what the answer of that question might be?

BERNARD KERIK, FORMER NEW YORK CITY POLICE COMMISSIONER: No. I don't think anybody does based on what we have found so far. I think you have to go back to one of your speakers, Wolf.

They said the threat is imminent. Anybody that doesn't think after September 11, 2001 that there is an imminent threat against this country, they're crazy. These people are out there. They despise our country. They despise our freedoms, and they're going to do anything in their power to destroy us. That has -- we saw it on September 11. We've heard about it consistently. If you look at the 9/11 Commission report, they, basically, say, the one thing they are all in concern -- concerned with and everyone is saying the same thing, and that is there is a threat against us that is imminent. And we have to keep that into consideration, each and every day moving forward.

BLITZER: So, what you're saying is this higher security precaution level that everybody is under right now in New York, New Jersey, here in Washington for the foreseeable future, that going to have to be the case?

KERIK: Wolf, we live in a different day, in a different world after September 11, and people have to realize that. I found it humorous this morning some of the CEOs, you know they are running looking for threatened vulnerability assessments and looking for security companies today, to come in quickly and do assessment on their employees, on their companies, on their buildings. This -- you know, they've been sleeping for two and a half years. The president has said it for two and a half years, there is a war against us. We have to combat that war, combat the terrorism. And that's what we have to do. This shouldn't be something new.

BLITZER: Commissioner, those bridges, the tunnels the one that is are closed to inbound commercial traffic, that means truck traffic.

Can New York City survive economically with that kind of disruption?

KERIK: Well, I don't think they can survive with that kind of disruption on a daily basis. But there are mechanisms to do random checks. There are mechanisms -- I think one thing we have to realize out of this information today, the system is working. The creation of Homeland Security, the merging of the 22 agencies, the coordination and communications that has started back on September 12, it's working or we wouldn't have this. We would never have gotten this coined of information on September 10 of '01. We have to use that intelligence, use that information, and then create mechanisms to keep on top of the every day way we live, including the bridges, the tunnels, the buildings, the high-rise buildings, the landmark locations, tourist sights.

BLITZER: I've heard a lot of law enforcement authorities suggest that by going public with all this information the way Tom Ridge, the secretary for Homeland Security did yesterday, you may be preempting -- preventing the kind of strike, because the terrorists are watching television as well.

Do you accept that?

KERIK: I guess it runs both ways, Wolf. You know, We have to tell the public what we know, what we believe. We have to tell the corporations. We have to tell the media. So we do the best we can. If you don't tell them, you're wrong. If you tell them, you're wrong. So, I think you have to run a delicate balance and do the best you can.

BLITZER: What is your bottom line sense right now as far as the threat level in New York, New Jersey, and Washington D.C. today, as opposed to a year ago or two years ago?

KERIK: I don't think it should be any different than the morning of September 11. I don't think it should be any different. We should consider there is an imminent threat against us and do everything physically in our power to protect our buildings, our government locations, our landmark locations, tourist sites, and our employees and people that live in this city.

BLITZER: Bernard Kerik, the former police commissioner, he was on the job on the day of 9/11, thanks very much for joining us.

KERIK: Thank you, Wolf.

And to our viewers, here's your chance to weigh in on this important story, our Web "Question of the Day" is this: will President Bush's intelligence reforms help thwart terrorist attacks?

You can vote right now. Go to cnn.com/wolf. We'll have the results later in the broadcast.

New urgency. Will the heightened terror alert put pressure on the Congress to pass the 9/11 reforms.

Plus this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hopefully we will find the body obviously. But we believe this case is strong.

(END VIDEO CLIP)

BLITZER: An arrest in the case of the Utah woman who so -- who was reporting missing. We're live from Salt Lake City with this developing story.

Church explosions. Why Christians are now the new target in Iraq. Insight from the former U.S. defense secretary, William Cohen.

And Olympic challenge: Greece scrambling to get ready for the games and the danger that is may go with them. We're live from Athens.

(COMMERCIAL BREAK)

BLITZER: There's a dramatic development in the case of a pregnant Utah Woman who disappeared two weeks ago.

CNN's Miguel Marquez is in Salt Lake City. He joins us now live with the latest -- Miguel.

MIGUEL MARQUEZ, CNN CORRESPONDENT: Yes, Wolf, and it's a development that a lot of people have expect indeed this city, and certainly across the country now that this has become a national story. Mark Hacking has moved from a local psychiatric hospital to the Salt Lake City jail. His mug shot appearing on Web sites earlier today. He's been charged with one count of aggravated murder in the death of his wife, Lori Hacking. Police say Hacking was the focus of the investigation from the very beginning and evidence from the apartment and nearby dumpster and Lori Hackings car, and witnesses lead to the charge.

Lori Hacking has been missing for two weeks. Her husband reported her missing and police through their investigation discovered that Mark Hacking lied to his wife and family about being accepted into medical school and about graduating from the University of Utah. Police say even if they don't find body, they believe they have a solid case.

(BEGIN VIDEO CLIP)

CHIEF RICK DINSE, SALT LAKE CITY POLICE: Well, we believe we have sufficient evidence we can do that. We're hopeful we'll find the body, obviously. But we believe that this case is strong enough that we could prosecute without that. But we're going to be talking carefully with the District Attorney's office.

(END VIDEO CLIP)

MARQUEZ: One thing that still torments police is that they have not recovered the body. They believe it is in a local landfill. They've been going through a two acre plot there and they just hate the idea of that being her final resting place. They're going begin looking for her again on Wednesday -- Wolf.

BLITZER: Miguel Marquez reporting the latest from Salt Lake City, Migel, thanks very much. The community clearly has been shocked by all of these developments the last two weeks. Joining us now, with more on this situation is the mayor of Salt Lake City, Rocky Anderson.

Mr. Mayor, thanks very much for joining us.

How surprised are you by this latest twist in this horrible case?

MAYOR ROCKEY ANDERSON, SALT LAKE CITY, UTAH: We fully expected that there would be an arrest made. I know the police have been doing a very thorough, comprehensive job. There have been challenging circumstances. We certainly will continue the search for Lori's body. I think both from an evidentiary point of view it's important, but it's certainly also important to Lori's family and other loved ones.

BLITZER: The suspicion is the body -- it's a horrible thought -- is at that dump in Utah. Is that right?

ANDERSON: That's where everything seems to be leading, yes.

BLITZER: And is there a master search of underway there for the body?

ANDERSON: Yes. They've been using some trained cadaver dogs to help out. They needed a couple days rest. They're going to continuing that search and it's a very daunting thing, as you might imagine, with thousands of tons of garbage dumped each day. But fortunately only about a day after Lori was missing the police got to the operators at the landfill, to get them to keep people from dumping in that area. So, they're trying to control it as best they can. They will continue to do their best to find Lori.

BLITZER: How are the two families doing in this situation?

ANDERSON: I'm sure that it's the worst thing anybody could go through. First of all, having somebody missing like Lori, going through all of this, finding out about the deceit by her husband and then an arrest of her husband being made, I don't think anybody could go through anything worse. But I know this entire community is supporting these families. Thousands of people came out to help in the search. They -- hundreds of people came out for the vigil for prayer and fasting services. This community really comes together in remarkable ways, as they did during the Elizabeth Smart case, which, amazingly, ended about a year ago.

BLITZER: Well, Given The history of your community, we all remember the Elizabeth Smart case and now this case, I assume you're going to prosecute the husband in Salt Lake.

But can he get a fair trial there?

ANDERSON: I think there's no question he can get a fair trial. Although, There's Been a lot of publicity, there's been nothing really aid about any of the evidence. Police have been very, very careful about that. Appropriately discreet about the information they've left out to the media. And I think, as we see in a lot of cases where it seems before the trial begins to be a lot of publicity, the jurors are very capable of weighing the evidence, and I think that's going to be the case in this trial.

BLITZER: Based on what you know, what the evidence is out there, is there a motive, is there a possible motive that anyone has right now?

ANDERSON: Wolf, I'm sorry. For the very reasons we just discussed, I don't think it's appropriate to get into that.

BLITZER: To get into motive, he's still in a psychiatric ward right now, in a psychiatric hospital undergoing mental treatment?

ANDERSON: Well, actually, an arrest has been made. He's in the Salt Lake County Jail. He is on suicide watch. But he has been in the psychiatric ward since the day following Lori's disappearance.

BLITZER: When he was seen running around naked outside a motel. A horrible case. I'm sorry we have to talk, Mr. Mayor, under these circumstances. Perhaps the next time it will be a better story. Appreciate it very much.

ANDERSON: I hope so, wolf. Nice talking to you.

BLITZER: Thank you very much.

It's just a week and a half until the Olympics. Is Athens ready for the unexpected?

Also, the latest update on Tropical Storm Alex. Should the Carolinas be bracing a hurricane?

And the post-convention polls are out, where's the bounce and does it matter?

(COMMERCIAL BREAK)

BLITZER: Just 11 days until the opening of the Summer Olympics, in Athens, Greece. Organizers are running some last minute test, going through their final security checks.

Our Michael Holmes is there following all of this for us. He's joins us live with an update -- Michael.

MICHAEL HOLMES, CNN CORRESPONDENT: Hi, Wolf. Beautiful scene behind me, the acropolis there at night. It's after midnight, there's still a concert going on back there. And as you security is the uppermost issue on people's minds as we head to the finish line in the race to the Olympics beginning on the 14th of this month.

I got to tell you, it's very unobtrusive at the moment. You do see police around town, some riot police with automatic weapons. It is not a whole lot. And we spoke with the mayor today, and she told us that's what they're trying to do, keep it unobtrusive, but it is there. There is a blimp overhead all day. There's NATO involvement. There's going to AWACS in the skies. There's going to be frogmen in the harbors looking out for those staying on boats. We spoke to a NATO spokesman today about the potential risk and what's being done.

(BEGIN VIDEO CLIP)

JAMES APPATHURAI, NATO SPOKESMAN: This is a complex operation. It's a country that's very difficult to defend in terms of it's geography. And of course, there's millions of people coming from all over the world. So, it's complicated. But yes, the intelligence assessment is of a relatively low risk, but you can never predict, of course, it is impossible to know. From what we know now, these Olympics are not under any particular threat. And the Greek government has done everything humanly possible with our support where appropriate to provide a secure and safe and happy games.

(END VIDEO CLIP)

HOLMES: As you can hear from that, Wolf, that NATO very keen, as are all nations that are bringing their own security, like the United States. Very keen to say the Greeks are running the show here. In fact, there's going to be 70,000 Greek Police and soldiers on the streets. But they're going to be backed up by NATO. Just as an example, some Czech Republic experts in bio and chem-warfare are just standing off outside Greece in case something happenings.

The FBI is sending in a hostage rescue team and a bomb scene analysis team as well. Security very much on everyone's mind. But I've got to tell you, people here, like the mayor said, they don't feel like they're targets at the moment. Everybody being careful of course. Remember, a dollar's figure, $1.2 billion being spent on these games. Think back to Atlanta, Wolf, eight years ago, it's 15 times the amount spent in Atlanta -- Wolf.

BLITZER: CNN's Michael Holmes reporting from Athens for us. Michael will be reporting throughout these coming days as the Olympic games get under way. Thank you, Michael, very much.

More on today's terror alert here at home, that's coming up.

A Tanzanian suspect may have provided some important clues.

And now that President Bush has endorsed some of the 9/11 Commission anti-terror proposals will the U.S. Congress actually follow through?

And Tropical Storm Alex, just off the coast of the Carolinas. Will it grow into a hurricane? We'll have an update straight ahead.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Heightened security after alarming intelligence. Will lawmakers take action on the new 9/11 Commission recommendations? Our live coverage of the terror threat continues.

First, though, some news happening right now.

The first tropical storm of the year in the North Atlantic is picking up strength off the Carolinas. Forecasters say Tropical Storm Alex could, possibly could become a hurricane.

CNN meteorologist Jacqui Jeras joining us now live with more on this -- Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Hey, Wolf.

I think it will become a hurricane and probably by midday tomorrow. And the National Hurricane Center has now just issued hurricane warnings in effect from Cape Lookout on up to the Oregon inlet and then extended tropical storm warnings up towards the North Carolina to the Virginia border.

Now, we are not expecting this to make direct landfall. However, hurricane-force winds may be skirting along the Outer Banks, we think, for tomorrow afternoon. Right now, the maximum sustained winds are 60 miles per hour. It is moving up to the north and northeast at six miles per hour, but should pick up forward speed through the overnight hours.

Showers and thunderstorms common across the Carolinas. There is a threat of some minor flash flooding, one to three inches, and water spouts can be expected for tonight, also some very strong rip currents in place. Forecast track for tomorrow, we'll show you. It should be getting within 50 miles, we think, of the coastline, strengthening to a Category 1, though, as it pulls away from shore.

BLITZER: CNN's Jacqui Jeras reporting on the latest on Alex for us. We'll be watching that tropical storm, see if in fact it does become a hurricane.

Keeping you informed, CNN, the most trusted name in news.

Officials say the new terror alert levels in New York, Newark, New, Jersey and Washington, D.C. largely based on information coming from Pakistan.

CNN's Zain Verjee has been looking into that angle. She's joining us now live from the CNN Center -- Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, the arrest of one man in Pakistan appears to have influenced the decision to raise the terror alert to orange.

A U.S. intelligence official says so-called documentary evidence discovered after the arrest was viewed over 36 hours before Sunday's announcement.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): A crackdown on suspected al Qaeda operatives in Pakistan and the seizure of computers produced evidence that prompted American officials to issue specific terror warnings.

According to U.S. and Pakistani officials, the arrest of a 25- year-old computer expert on July 13 led to the discovery of a treasure trove of information on al Qaeda's secret information system.

SHEIKH RASHID AHMED, PAKISTANI INFORMATION MINISTER: We have arrested a computer master, and we got some information from his computer and from his e-mails.

VERJEE: The computer master has been identified by one U.S. official as Mohammed Naim Noor Kahn (ph). But Pakistani officials say it could be an alias. It appears he transmit cryptic coded messages to al Qaeda suspect, codes apparently cracked by U.S. investigators.

It was this coded information, U.S. and Pakistani officials say, that was mainly responsible for the increased threat level. And U.S. Homeland Security Chief Tom Ridge stressed Pakistan's vital role and support.

TOM RIDGE, HOMELAND SECURITY SECRETARY: The reports that have led to this alert are the result of offensive intelligence and military operations overseas, as well as strong partnerships with our allies around the world, such as Pakistan.

VERJEE: Another computer was seized after the capture last week of Ahmed Khalfan Ghailani, a senior al Qaeda suspect wanted for the twin embassy bombings in 1998.

He was captured in central Pakistan. American officials say Ghailani's arrest was not linked to the latest terror alert, but the Pakistani government says e-mails in his computer revealed plans to attack the U.S. and Britain. Pakistan says both suspects are being interrogated and is acting on new information.

AHMED: From this clue we have arrested other few peoples. So it is a big network.

(END VIDEOTAPE)

VERJEE: Wolf, Pakistani officials say they have arrested seven people since Ghailani was captured.

BLITZER: Let's get back, Zain, to this Mohammed Naim Noor Kahn. What specifically do they suspect was his role?

VERJEE: Well, according to a "New York Times" story that quotes a Pakistani intelligence official, Khan told investigators that couriers took messages from senior al Qaeda leaders who were in hiding to religious schools in Pakistan's tribal areas. Then other couriers would then bring those messages to Khan. And Kahn, for his part, would post them in code on Web sites or e-mail them and transmit them electronically -- Wolf.

BLITZER: Pretty sophisticated operation, at least on paper.

Thanks very much, Zain Verjee, reporting for us.

With al Qaeda eying America, there is growing pressure on the U.S. Congress to pass the reforms laid out in the 9/11 report.

For more on that, let's turn to our congressional correspondent, Ed Henry -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Wolf, the heightened terror warnings are giving the 9/11 Commission new impetus to get the recommendations implemented on Capitol Hill.

(BEGIN VIDEOTAPE)

HENRY (voice-over): 9/11 commissioners believe President Bush took a strong first step, but they urged Congress to act quickly, especially in the wake of the latest warnings of terrorist attacks.

TIMOTHY ROEMER, PRESIDENT, CENTER FOR NATIONAL POLICY: I can't think of a higher priority than implementing some of these reforms quickly and smartly and efficiently. Al Qaeda is not on a vacation schedule.

HENRY: Even before the threat level was raised, 9/11 Commission Chairman Thomas Kean spoke of the imminent danger. He testified Friday at the first of a slew of rare summer hearings on Capitol Hill.

THOMAS KEAN, CHAIRMAN, 9/11 COMMISSION: It is an emergency. There's an enemy out there who is planning as we meet here to attack us. HENRY: Commissioners will start hitting the road nationwide Tuesday to whip up support for their proposals. Since it's an election year, they want to keep the heat on lawmakers.

ROEMER: Well, I would strongly encourage the Congress to work in a bipartisan way to try to get a number of these recommendations, many of which are not new, implemented and protect this country so that when they run for reelection in November, they can run with a good conscience, fulfilling their job description and job responsibilities to defend and protect this great country.

HENRY: Democratic nominee John Kerry wants Congress called back for a special session to follow up hearings with legislative action this month. The president disagrees.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Congress has been thinking about some of these ideas. They can think about them over August and come back and act on them in September.

HENRY: The president prodded Congress to improve its own handling of intelligence, rather than simply shaking up the executive branch.

BUSH: There are too many committees with overlapping jurisdiction, which wastes time and makes it difficult for meaningful oversight and reform.

(END VIDEOTAPE)

HENRY: The 9/11 Commission will step up its push for reform tomorrow; 9/11 commissioners Bob Kerry and John Lehman will be testifying at a hearing on the House side. There will also be a Senate hearing on the plan for a national counterterrorism that President Bush endorsed today -- Wolf.

BLITZER: All right, thanks very much, CNN's Ed Henry, reporting

The battle for Iraq, that's coming next, heavy, heavy fighting in the holy city of Najaf. We'll tell you who the target is.

Plus, the former Defense Secretary William Cohen, he will join us live with his take on Iraq, the war on terror, other key developments.

Convention bounce, did John Kerry get one from his Boston extravaganza? And does it matter if he didn't?

Also, there's something new about a very old high-diving competition. It is our picture of the day. We'll get to all of that.

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

(BEGIN VIDEOTAPE)

ANNOUNCER: Survivors of a supermarket fire in Paraguay's capital say locked doors impeded their escape from the blaze that killed more than 300 people. The store's management denies doors were locked. Yesterday's fire is being called the country's worst disaster in more than 50 years.

Czech explosion. Officials in Prague are blaming gang activity for an explosion outside a casino that wounded 18 people. A grenade went off under a sports utility vehicle belonging the Israeli owner of the casino. His father was shot to death two years ago. No one has been charged in that attack.

Uprising anniversary. Western leaders paid tribute to the Polish fighters who revolted against the Nazi occupation in World War II. An estimated 200,000 Poles were killed in the 63-day Warsaw uprising that began on August 1, 1944.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: There was heavy fighting today in the Iraqi holy city of Najaf, home of the radical Shiite cleric Muqtada al-Sadr. A spokesman for al-Sadr says a gun battle erupted between militants protecting al-Sadr and U.S. Marines and Iraqi forces. U.S. military officials said the Marines were not involved in that action, but did come under fire while patrolling the city.

The Marines say they returned fire, killing two insurgents. Al- Sadr's militia battled U.S. forces for weeks in April, but fighting died down after a series of truces.

Joining us now with more on the latest fighting in Iraq, as well as the terror warnings here in the United States, the former Defense Secretary William Cohen.

Mr. Secretary, thanks very much for joining us.

First of all, in Iraq, did you notice yesterday a series of coordinated attacks against Christian churches in Baghdad and Mosul? Is this a new target or is this something we shouldn't be surprised is happening right now?

WILLIAM COHEN, CNN WORLD AFFAIRS ANALYST: Well, it is a new target. And there hasn't been this kind of violence directed at the Christian churches recently. Certainly, during the time that Saddam was in power, they didn't have that kind of concern because of his repressive tactics to make sure it didn't happen.

Now, the question becomes, is it religiously inspired or this part of the radical insurgency that we see taking place? I would think that, on the one hand, there are questions raised about whether it was Shia-related or whether this is Sunni-related. I think the Ayatollah al-Sistani speaking out and condemning it would be an indication that it really was the insurgency, the radical elements of that insurgency, trying to attack the Christian element. BLITZER: And these are not foreigners who go to these Christian churches in Baghdad. These are Iraqi Christians. There are about 700,000 of them. And they have been there for centuries.

COHEN: They are Iraqi citizens. And they are also indiscriminate in terms of who they kill. There are many Muslims of any faith who are there who are wiped out during the course of these bombing attacks.

So you have innocent Muslims who may be Shia. They may be Muslim. They may be Christian. And they are slaughtered in the same bombings. So they are barbaric. They are unmoved by any sense of conscience in terms of how many they want to kill in order to disrupt and destroy this interim government and drive the coalition forces out.

BLITZER: What's your take on this heightened terror alert level in New York, New Jersey and here in Washington?

COHEN: I think it's long overdue. We have known for a long time now that they have been planning these types of attacks, if go back to the Hart-Rudman commission report that started in 1999, a three-part report, warning that we are going to see attacks on American soil perhaps using chemical and biological agents.

And if you have to have any foresight at all and say where will they attack, financial centers, political centers and also entertainment centers, Hollywood, etcetera. So it's not rocket science to understand what they're trying to do. And we should have been on a much higher state of alert for a long period of time now. So this doesn't come as a surprise. The specificity of the individuals involved who may be part of this planning does come as news. And that's good news for us to be cracking down as much as we can on those individuals.

BLITZER: When I interviewed the homeland security secretary, Tom Ridge, about a year or so ago, when they were occasionally doing the threat level alert going from yellow to orange nationwide, I said, why not just target one area, the most vulnerable areas, the targets that are most likely, instead of making people in Kansas or Wyoming heighten up their security preparations as well?

He said, the downside of doing that is that you sort of advertise where there aren't higher threat levels, where there aren't higher security precautions and you're in effect giving information to terrorists. They've obviously thought through that and rejected that stance going into this regional higher level of security.

COHEN: But, as a practical matter, the terrorist groups are going to target those cities and those areas and those instruments of our prosperity that are most vulnerable in terms of the impact it will cause, the chaos in terms -- and the loss of prosperity for our country.

So in Kansas or some of the other areas of the country, they're not going to be on high alert, as you would in New York City, here in Washington, D.C. or in Los Angeles or Chicago. Those are the centers that the terrorists are most likely to go.

To the extent that you increase your awareness, warnings of heightened alert, that may drive the terrorists or draw the terrorists into other areas. But the impact will be less. And I think that what we have to do is focus on financial centers, political centers and also entertainment centers.

BLITZER: William Cohen, the former defense secretary, thanks for joining us.

COHEN: My pleasure, Wolf.

President Bush says he's in favor of having a national intelligence director. We'll go on the trail to get John Kerry's reaction.

And, staying with politics, there was no convention bounce, for all practical purposes. Should Democrats be deflated? Our Brian Todd, he will join us with more on that.

First, though, a quick look at some stories you may have missed this past weekend.

(BEGIN VIDEOTAPE)

ANNOUNCER: Train trouble. About 20 cars of a freight train derailed in northeast Kentucky, rupturing a natural gas line. Authorities evacuated 45 nearby residents for two hours.

Deck collapse. At least 80 people were hurt when a 14-foot-high deck collapsed at a popular night spot in western Montana, the Diamond Horseshoe Casino. Authorities are investigating.

Born to run. Disabled runners braved the rain to join in a marathon in New York's Central Park. They runners included Iraq war amputees.

And that's our weekend snapshot.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: As we reported, President Bush today endorsed several recommendations of the 9/11 Commission, including the plan to create a new position for a national intelligence coordinator. It took Democratic nominee John Kerry only a few moments to react to the president's announcement.

CNN's Judy Woodruff takes us on the campaign trail.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN ANCHOR (voice-over): John Kerry says he's pleased with President Bush's decision to support the appointment of a national intelligence director, but Kerry says the president needs to do more.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: If the president had a sense of urgency about this director of intelligence and about the needs to strengthen America, he would call the Congress back and get the job done now.

WOODRUFF: Kerry campaigned in Grand Rapids, Michigan, earlier today, and he'll appear at a rally in Milwaukee, Wisconsin tonight.

After spending most of the weekend on the trail with Kerry, running mate John Edwards is campaigning solo in Florida today. President Bush is spending the day in Washington, but Vice President Cheney talked about the war on terror at Peterson Air Force Base in Colorado.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: This enemy is perfectly prepared to slaughter anyone, man, woman, or child, to advance its cause.

WOODRUFF: After leaving Colorado, the vice president headed for Texas.

Judy Woodruff, CNN, Washington.

(END VIDEOTAPE)

BLITZER: A new CNN/"USA Today"/Gallup poll shows Kerry and Bush effectively tied in the presidential contest. It suggests that Kerry got virtually no bounce at all from the Democratic Convention.

Our Brian Todd is joining us now live with more on this -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, not since 1972 has a candidate come out completely flat from a convention. And political watchers on both sides are struggling to find out what this really means.

(BEGIN VIDEOTAPE)

TODD (voice-over): Before the convention, Democrats argued John Kerry already had a bounce and wouldn't likely see much of one after Boston. Now that we seem to have a self-fulfilling prophecy on our hands and Kerry actually loses a percentage point among registered voters after the convention, is this a disaster for the Democrats?

AMY WALTER, CNN POLITICAL ANALYST: I think, if you are a partisan Democrat, you probably want to see something come out of Boston. At the same time, you look at a neck-and-neck race between a challenger and a sitting incumbent president. That incumbent president, actually, the weight is on him right now.

TODD: With the race so close all year, with so many voters apparently having made up their minds long ago, all the analysts we spoke to agree. Despite the millions spent on the Boston convention to showcase the candidate, there wasn't much of a bounce to get. KEATING HOLLAND, CNN POLLING DIRECTOR: This year, we're seeing a historically low number of persuadable voters. Only about one in seven, one in six, possibly even fewer than that, are persuadable, undecided voters.

TODD: Bounces also tend to fade as the fall debate season approaches. But history sends mixed signals on their importance; 1980, incumbent Jimmy Carter gets a bounce from the Democratic Convention that's huge by modern standards, 10 percentage points (AUDIO GAP) against a surging populist challenger; 1988, Michael Dukakis gets a 7-point bounce, compared with George Bush Senior's six- point surge after his convention.

But one analyst says the modest bounce for Bush was much more important and he couldn't have won that election without it. Popular rhetoric in recent years says the conventions have lost news value. If they don't matter as much, why would a bounce matter? Well, consider 1992. A young challenger has moved ahead of the Democratic pack, but is not yet a familiar national figure. Bill Clinton dominates his convention. It's the largest bounce in modern political history, 16 points, and has the juice to beat a vulnerable incumbent.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: And suddenly Clinton looked like a candidate of change, the message he sold to the convention, someone who could run the country. And after that convention, he never lost his lead.

(END VIDEOTAPE)

TODD: Coming out of this convention, Kerry certainly does not seem to have changed many minds, that despite convention TV ratings that were up from four years ago. It leaves the question, was this a massive opportunity squandered or has interest in the campaign been so high all year long that few people are open to being swayed? That's a question that may not be answered until the fall, Wolf.

BLITZER: When you say the fall, that would be November 2.

TODD: November 2.

BLITZER: The day of the election.

TODD: That's right.

BLITZER: Brian Todd, thanks very much for that explanation.

The results of our Web question of the day, that is coming up.

Plus, bridge jumping, it is not an Olympic sport, but it is a thrill we should watch.

(COMMERCIAL BREAK)

BLITZER: Here are the results of our Web question of the day. Take a look at this. Remember, this is not a scientific poll. What is believed to be the world's oldest high-diving competition has moved to a new bridge. Ever since 1664, divers have been jumping off a bridge at this site in Mostar, Bosnia. The bridge was destroyed 11 years ago during the Balkans War. A new bridge was completed late last month. Now the competition has been held on the new bridge for the first time. And that's our picture of the day.

That's all the time we have. "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 August 2, 2004 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: (UNINTELLIGIBLE) a candidates concern, John Kerry hits the trail with a thud instead of bounce. Why haven't his poll numbers gone up?
Stand by for hard news on Wolf Blitzer reports.

(BEGIN VIDEO TAPE)

ANNOUNCER: After the alert from Wall Street to Washington.

UNIDENTIFIED MALE: You have just have to place your faith in, you know, (UNINTELLIGIBLE) are taking care of you.

UNIDENTIFIED MALE: I'm not going to be live my life in fear. We've come to far.

ANNOUNCER: American's respond to a terror threat.

The president says the nation is in danger.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Today I'm asking Congress to create the position of the national intelligence director.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The time to act is now, not later.

ANNOUNCER: out in Iraq: Is the U.S. in a final showdown with a radical Shiite cleric.

From missing to murder, Utah police make an arrest in the case of Lori Hacking.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Monday, August 2, 2004.

BLITZER: Al Qaeda may have this nation's economy in its sights, and many Americans went to work today wonder if they are targets. Security is being stepped up at key financial centers in New York, along with Newark and Washington, D.C. The latest terror threat may involve truck bombs and the Holland Tunnel into New York City is now closed to inbound commercial traffic. Here in the nation's capital, police are keeping a close eye on the World Bank and International Monetary Fund along with government buildings and national landmarks. Is Wall Street being turn a fortress?

We'll have a live report from the New York Stock exchange. That's coming up.

CNN's Elaine Quijano is over at the White House where the president has now endorsed an intelligence overhaul. But we begin with CNN justice correspondent Kelli Arena with chilling detail on what officials know about the threat and, more worrisome, what they don't know -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: The level of concern is high. Residents, as you said, in New York and Washington witnessing a visible reaction to the latest intelligence. But there's still nothing defensive on whether al Qaeda is operational or when it plans to attack.

(BEGIN VIDEOTAPE)

ARENA (voice-over): With enhanced security in place around the named targets, counterterrorism officials believe al Qaeda conducted surveillance inside the five buildings, some of it done within the last few months.

TOM RIDGE, HOMELAND SECURITY SECRETARY: It indicates that they've taken a long, hard look at several sights.

ARENA: Sources say there are event and date references in the material confiscated in Pakistan, along with about 500 computer images, including photographs, drawings and layouts. These are helping investigators determine precisely when the surveil was conducted.

COMMISSIONER RAY KELLY, NEW YORK POLICE: This is an intelligence report by the enemy, you might say, but not tied at this moment in time to any operational plan that we're aware of.

ARENA: Investigators are trying to find out who carried out the surveillance by scanning employee and visitor records from the various sites. And to determine whether those individuals are still in the United States. But officials say there's been no headway made concerning the timing of a possible attack.

KELLY: Although I don't have real concrete information around how long this is going to last.

ARENA: The fact the new intelligence was found in connection with the arrest of an alleged al Qaeda expert, an accused operative, Ahmed Ghailani is very troubling to some experts.

MICHAEL HERSHMAN, HOMELAND SECURITY EXPERT: I think it is an imminent threat because the individual Ghailani who was arrested two weeks ago in Pakistan, had the documents with him, had over $5 million and was known to be training agents in Pakistan to carry out suicide missions in the United States and the U.K.

(END VIDEOTAPE)

ARENA: Experts also point out al Qaeda remains a very flexible organization. Pardon one target and they'll plan to attack another -- Wolf.

BLITZER: Kelli Arena, thanks very much.

For now, one of the targets to be the New York Stock Exchange is on the list for extra security.

CNN's Chris Huntington is there. He's been taking the pulse of wall street.

(BEGIN VIDEOTAPE)

CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): The New York Stock Exchange put on a brave face this morning. The big board's new chief executive John Thain, accompanied by New York Senator Charles Schumer greeted traders and exchange staff as they showed up for work amid heightened terror concerns.

JOHN THAIN, CEO NEW YORK STOCK EXCHANGE: We are open for business. We intend to keep it functioning.

SEN. CHARLES SCHUMER (D), NEW YORK: The terrorists want to scare us. If every time they made a threat we stop doing what we're doing, they'd win. And so, we feel it is almost imperative for everybody to go about their jobs.

HUNTINGTON: Inside the exchange the mood was defiant with New York Governor George Pataki, accompanying New York Mayor Michael Bloomberg to ring the opening bell. Technically, the terror alert level in New York City remains at level orange and it's been that way since the 9/11 attacks. But security immediately outside the Stock Exchange was visibly beefed up with heavily armed guards and new traffic checkpoints to a new perimeter that extends several blocks around Wall Street. and there was security around Prudential headquarters in New Jersey and around Citigroup's main offices in Manhattan and Queens. All of the financial institutions targeted in the latest terror threat opened for business and urged their employees to come to work. And most did so, even if they were a bit uneasy.

UNIDENTIFIED MALE: I'm a little bit more apprehensive, but I'm not nervous, per se.

UNIDENTIFIED MALE: I know people are just traveling and traveling. I notice people are a lot more quiet.

UNIDENTIFIED MALE: I think it's probably today the safest building today in New York City.

Mayor Bloomberg toured the Citigroup headquarters with first lady Laura Bush. He says security has been stepped up at the identified targets, he pledged to keep a vigilant watch else where in the city, and he urged New Yorkers to do the same.

MAYOR MICHAEL BLOOMBERG, NEW YORK: It is a good wake-up call to everybody in every building. Just because your name wasn't on the list doesn't mean you shouldn't take precautions. And the more precautions you take, the safer you will be.

(END VIDEOTAPE)

HUNTINGTON: Now, the latest terror threats were specific as to location, but not as to timing. Mayor Bloomberg made it closer they would maintain the security in New York City for as long as necessary and at as high a level as necessary. And Wolf, for folks in the financial industry, that means getting back to business among new threats for the unforeseeable future.

BLITZER: Chris Huntington, reporting from Wall Street. Thank, Chris, very much.

Sounding a urgent note on the terror threat, the president embraced key recommendations of the 9/11 Commission.

But his campaign rival is calling for even quicker action.

Let's go to CNN's Elaine Quijano. She's over at the White House -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good evening, Wolf.

President Bush, says reforms have already been put into place. He points to the creation of the Homeland Security Department and also what he says is better information sharing between the FBI and CIA. At the same time, the president said he agrees with many of the September 11 Commission recommendations and today said he would act.

(BEGIN VIDEOTAPE)

QUIJANO (voice-over): Less than two weeks after the September 11 Commission released its report, President Bush asked Congress to create a new national intelligence director and a national counterterrorism center as the panel recommended.

BUSH: We are a nation in danger. We're doing everything we can in our power to confront the danger.

QUIJANO: Senior administration officials say the new director would coordinate 15 intelligence agencies, now a job handled by the head of the CIA. But in a departure from the commission's recommendations, Mr. Bush said that new position should remain outside the White House, in part, to ensure you autonomy.

MICHAEL O'HANLON, BROOKINGS INSTITUTION: The basic idea is you want the president to hear bad news, if there is bad news, even if it runs against the presidents policies. You don't want someone deliberately manufacturing intelligence or perhaps more realistic -- sort of slanting intelligence. QUIJANO: The president's announcements come against the backdrop of increasing criticism by his Democratic opponent, John Kerry, who says the White House has not moved quickly enough to reform the intelligence community. Kerry also says the administration's actions in carrying out the war on terror have focused an I animosity and anger against the U.S., an idea the president rejects.

BUSH: It is a ridiculous notion to assert that because the United States is on the offense more people want to hurt us. We're on the offense because people do want to hurt us.

(END VIDEOTAPE)

QUIJANO: Now, White House Chief of Staff Andy Card was asked about the role politics played in the president's decision. He insisted bluntly this had nothing to do with politics, that it had to do with better coordination of intelligence -- Wolf.

BLITZER: Elaine, Quijano, over at the White House. Thanks, Elaine, very much.

The Democratic presidential John Kerry says he's pleased the president has endorsed some of the 9/11 panel's recommendations, but he wants even quicker action.

(BEGIN VIDEO CLIP)

KERRY: If the president had a sense of urgency about this director of intelligence and about the needs to strengthen America, he would call the Congress back and get the job done now. That's what we need to do. That's the urgency that exists in order to make America as safe as possible. The terror alert yesterday just underscores that if we're being serious about this, we have to move on every possible option to make our nation as safe as possible. The time to act is now, not later.

(END VIDEO CLIP)

BLITZER: And joining us now with more on the situation in New York, the former New York City police commissioner, Bernard Kerik. Commissioner thanks very much for joining us.

One of the key questions -- the key question, unanswered by all the new intelligence, is when. Do you have any indication what -- what the answer of that question might be?

BERNARD KERIK, FORMER NEW YORK CITY POLICE COMMISSIONER: No. I don't think anybody does based on what we have found so far. I think you have to go back to one of your speakers, Wolf.

They said the threat is imminent. Anybody that doesn't think after September 11, 2001 that there is an imminent threat against this country, they're crazy. These people are out there. They despise our country. They despise our freedoms, and they're going to do anything in their power to destroy us. That has -- we saw it on September 11. We've heard about it consistently. If you look at the 9/11 Commission report, they, basically, say, the one thing they are all in concern -- concerned with and everyone is saying the same thing, and that is there is a threat against us that is imminent. And we have to keep that into consideration, each and every day moving forward.

BLITZER: So, what you're saying is this higher security precaution level that everybody is under right now in New York, New Jersey, here in Washington for the foreseeable future, that going to have to be the case?

KERIK: Wolf, we live in a different day, in a different world after September 11, and people have to realize that. I found it humorous this morning some of the CEOs, you know they are running looking for threatened vulnerability assessments and looking for security companies today, to come in quickly and do assessment on their employees, on their companies, on their buildings. This -- you know, they've been sleeping for two and a half years. The president has said it for two and a half years, there is a war against us. We have to combat that war, combat the terrorism. And that's what we have to do. This shouldn't be something new.

BLITZER: Commissioner, those bridges, the tunnels the one that is are closed to inbound commercial traffic, that means truck traffic.

Can New York City survive economically with that kind of disruption?

KERIK: Well, I don't think they can survive with that kind of disruption on a daily basis. But there are mechanisms to do random checks. There are mechanisms -- I think one thing we have to realize out of this information today, the system is working. The creation of Homeland Security, the merging of the 22 agencies, the coordination and communications that has started back on September 12, it's working or we wouldn't have this. We would never have gotten this coined of information on September 10 of '01. We have to use that intelligence, use that information, and then create mechanisms to keep on top of the every day way we live, including the bridges, the tunnels, the buildings, the high-rise buildings, the landmark locations, tourist sights.

BLITZER: I've heard a lot of law enforcement authorities suggest that by going public with all this information the way Tom Ridge, the secretary for Homeland Security did yesterday, you may be preempting -- preventing the kind of strike, because the terrorists are watching television as well.

Do you accept that?

KERIK: I guess it runs both ways, Wolf. You know, We have to tell the public what we know, what we believe. We have to tell the corporations. We have to tell the media. So we do the best we can. If you don't tell them, you're wrong. If you tell them, you're wrong. So, I think you have to run a delicate balance and do the best you can.

BLITZER: What is your bottom line sense right now as far as the threat level in New York, New Jersey, and Washington D.C. today, as opposed to a year ago or two years ago?

KERIK: I don't think it should be any different than the morning of September 11. I don't think it should be any different. We should consider there is an imminent threat against us and do everything physically in our power to protect our buildings, our government locations, our landmark locations, tourist sites, and our employees and people that live in this city.

BLITZER: Bernard Kerik, the former police commissioner, he was on the job on the day of 9/11, thanks very much for joining us.

KERIK: Thank you, Wolf.

And to our viewers, here's your chance to weigh in on this important story, our Web "Question of the Day" is this: will President Bush's intelligence reforms help thwart terrorist attacks?

You can vote right now. Go to cnn.com/wolf. We'll have the results later in the broadcast.

New urgency. Will the heightened terror alert put pressure on the Congress to pass the 9/11 reforms.

Plus this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hopefully we will find the body obviously. But we believe this case is strong.

(END VIDEO CLIP)

BLITZER: An arrest in the case of the Utah woman who so -- who was reporting missing. We're live from Salt Lake City with this developing story.

Church explosions. Why Christians are now the new target in Iraq. Insight from the former U.S. defense secretary, William Cohen.

And Olympic challenge: Greece scrambling to get ready for the games and the danger that is may go with them. We're live from Athens.

(COMMERCIAL BREAK)

BLITZER: There's a dramatic development in the case of a pregnant Utah Woman who disappeared two weeks ago.

CNN's Miguel Marquez is in Salt Lake City. He joins us now live with the latest -- Miguel.

MIGUEL MARQUEZ, CNN CORRESPONDENT: Yes, Wolf, and it's a development that a lot of people have expect indeed this city, and certainly across the country now that this has become a national story. Mark Hacking has moved from a local psychiatric hospital to the Salt Lake City jail. His mug shot appearing on Web sites earlier today. He's been charged with one count of aggravated murder in the death of his wife, Lori Hacking. Police say Hacking was the focus of the investigation from the very beginning and evidence from the apartment and nearby dumpster and Lori Hackings car, and witnesses lead to the charge.

Lori Hacking has been missing for two weeks. Her husband reported her missing and police through their investigation discovered that Mark Hacking lied to his wife and family about being accepted into medical school and about graduating from the University of Utah. Police say even if they don't find body, they believe they have a solid case.

(BEGIN VIDEO CLIP)

CHIEF RICK DINSE, SALT LAKE CITY POLICE: Well, we believe we have sufficient evidence we can do that. We're hopeful we'll find the body, obviously. But we believe that this case is strong enough that we could prosecute without that. But we're going to be talking carefully with the District Attorney's office.

(END VIDEO CLIP)

MARQUEZ: One thing that still torments police is that they have not recovered the body. They believe it is in a local landfill. They've been going through a two acre plot there and they just hate the idea of that being her final resting place. They're going begin looking for her again on Wednesday -- Wolf.

BLITZER: Miguel Marquez reporting the latest from Salt Lake City, Migel, thanks very much. The community clearly has been shocked by all of these developments the last two weeks. Joining us now, with more on this situation is the mayor of Salt Lake City, Rocky Anderson.

Mr. Mayor, thanks very much for joining us.

How surprised are you by this latest twist in this horrible case?

MAYOR ROCKEY ANDERSON, SALT LAKE CITY, UTAH: We fully expected that there would be an arrest made. I know the police have been doing a very thorough, comprehensive job. There have been challenging circumstances. We certainly will continue the search for Lori's body. I think both from an evidentiary point of view it's important, but it's certainly also important to Lori's family and other loved ones.

BLITZER: The suspicion is the body -- it's a horrible thought -- is at that dump in Utah. Is that right?

ANDERSON: That's where everything seems to be leading, yes.

BLITZER: And is there a master search of underway there for the body?

ANDERSON: Yes. They've been using some trained cadaver dogs to help out. They needed a couple days rest. They're going to continuing that search and it's a very daunting thing, as you might imagine, with thousands of tons of garbage dumped each day. But fortunately only about a day after Lori was missing the police got to the operators at the landfill, to get them to keep people from dumping in that area. So, they're trying to control it as best they can. They will continue to do their best to find Lori.

BLITZER: How are the two families doing in this situation?

ANDERSON: I'm sure that it's the worst thing anybody could go through. First of all, having somebody missing like Lori, going through all of this, finding out about the deceit by her husband and then an arrest of her husband being made, I don't think anybody could go through anything worse. But I know this entire community is supporting these families. Thousands of people came out to help in the search. They -- hundreds of people came out for the vigil for prayer and fasting services. This community really comes together in remarkable ways, as they did during the Elizabeth Smart case, which, amazingly, ended about a year ago.

BLITZER: Well, Given The history of your community, we all remember the Elizabeth Smart case and now this case, I assume you're going to prosecute the husband in Salt Lake.

But can he get a fair trial there?

ANDERSON: I think there's no question he can get a fair trial. Although, There's Been a lot of publicity, there's been nothing really aid about any of the evidence. Police have been very, very careful about that. Appropriately discreet about the information they've left out to the media. And I think, as we see in a lot of cases where it seems before the trial begins to be a lot of publicity, the jurors are very capable of weighing the evidence, and I think that's going to be the case in this trial.

BLITZER: Based on what you know, what the evidence is out there, is there a motive, is there a possible motive that anyone has right now?

ANDERSON: Wolf, I'm sorry. For the very reasons we just discussed, I don't think it's appropriate to get into that.

BLITZER: To get into motive, he's still in a psychiatric ward right now, in a psychiatric hospital undergoing mental treatment?

ANDERSON: Well, actually, an arrest has been made. He's in the Salt Lake County Jail. He is on suicide watch. But he has been in the psychiatric ward since the day following Lori's disappearance.

BLITZER: When he was seen running around naked outside a motel. A horrible case. I'm sorry we have to talk, Mr. Mayor, under these circumstances. Perhaps the next time it will be a better story. Appreciate it very much.

ANDERSON: I hope so, wolf. Nice talking to you.

BLITZER: Thank you very much.

It's just a week and a half until the Olympics. Is Athens ready for the unexpected?

Also, the latest update on Tropical Storm Alex. Should the Carolinas be bracing a hurricane?

And the post-convention polls are out, where's the bounce and does it matter?

(COMMERCIAL BREAK)

BLITZER: Just 11 days until the opening of the Summer Olympics, in Athens, Greece. Organizers are running some last minute test, going through their final security checks.

Our Michael Holmes is there following all of this for us. He's joins us live with an update -- Michael.

MICHAEL HOLMES, CNN CORRESPONDENT: Hi, Wolf. Beautiful scene behind me, the acropolis there at night. It's after midnight, there's still a concert going on back there. And as you security is the uppermost issue on people's minds as we head to the finish line in the race to the Olympics beginning on the 14th of this month.

I got to tell you, it's very unobtrusive at the moment. You do see police around town, some riot police with automatic weapons. It is not a whole lot. And we spoke with the mayor today, and she told us that's what they're trying to do, keep it unobtrusive, but it is there. There is a blimp overhead all day. There's NATO involvement. There's going to AWACS in the skies. There's going to be frogmen in the harbors looking out for those staying on boats. We spoke to a NATO spokesman today about the potential risk and what's being done.

(BEGIN VIDEO CLIP)

JAMES APPATHURAI, NATO SPOKESMAN: This is a complex operation. It's a country that's very difficult to defend in terms of it's geography. And of course, there's millions of people coming from all over the world. So, it's complicated. But yes, the intelligence assessment is of a relatively low risk, but you can never predict, of course, it is impossible to know. From what we know now, these Olympics are not under any particular threat. And the Greek government has done everything humanly possible with our support where appropriate to provide a secure and safe and happy games.

(END VIDEO CLIP)

HOLMES: As you can hear from that, Wolf, that NATO very keen, as are all nations that are bringing their own security, like the United States. Very keen to say the Greeks are running the show here. In fact, there's going to be 70,000 Greek Police and soldiers on the streets. But they're going to be backed up by NATO. Just as an example, some Czech Republic experts in bio and chem-warfare are just standing off outside Greece in case something happenings.

The FBI is sending in a hostage rescue team and a bomb scene analysis team as well. Security very much on everyone's mind. But I've got to tell you, people here, like the mayor said, they don't feel like they're targets at the moment. Everybody being careful of course. Remember, a dollar's figure, $1.2 billion being spent on these games. Think back to Atlanta, Wolf, eight years ago, it's 15 times the amount spent in Atlanta -- Wolf.

BLITZER: CNN's Michael Holmes reporting from Athens for us. Michael will be reporting throughout these coming days as the Olympic games get under way. Thank you, Michael, very much.

More on today's terror alert here at home, that's coming up.

A Tanzanian suspect may have provided some important clues.

And now that President Bush has endorsed some of the 9/11 Commission anti-terror proposals will the U.S. Congress actually follow through?

And Tropical Storm Alex, just off the coast of the Carolinas. Will it grow into a hurricane? We'll have an update straight ahead.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Heightened security after alarming intelligence. Will lawmakers take action on the new 9/11 Commission recommendations? Our live coverage of the terror threat continues.

First, though, some news happening right now.

The first tropical storm of the year in the North Atlantic is picking up strength off the Carolinas. Forecasters say Tropical Storm Alex could, possibly could become a hurricane.

CNN meteorologist Jacqui Jeras joining us now live with more on this -- Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Hey, Wolf.

I think it will become a hurricane and probably by midday tomorrow. And the National Hurricane Center has now just issued hurricane warnings in effect from Cape Lookout on up to the Oregon inlet and then extended tropical storm warnings up towards the North Carolina to the Virginia border.

Now, we are not expecting this to make direct landfall. However, hurricane-force winds may be skirting along the Outer Banks, we think, for tomorrow afternoon. Right now, the maximum sustained winds are 60 miles per hour. It is moving up to the north and northeast at six miles per hour, but should pick up forward speed through the overnight hours.

Showers and thunderstorms common across the Carolinas. There is a threat of some minor flash flooding, one to three inches, and water spouts can be expected for tonight, also some very strong rip currents in place. Forecast track for tomorrow, we'll show you. It should be getting within 50 miles, we think, of the coastline, strengthening to a Category 1, though, as it pulls away from shore.

BLITZER: CNN's Jacqui Jeras reporting on the latest on Alex for us. We'll be watching that tropical storm, see if in fact it does become a hurricane.

Keeping you informed, CNN, the most trusted name in news.

Officials say the new terror alert levels in New York, Newark, New, Jersey and Washington, D.C. largely based on information coming from Pakistan.

CNN's Zain Verjee has been looking into that angle. She's joining us now live from the CNN Center -- Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, the arrest of one man in Pakistan appears to have influenced the decision to raise the terror alert to orange.

A U.S. intelligence official says so-called documentary evidence discovered after the arrest was viewed over 36 hours before Sunday's announcement.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): A crackdown on suspected al Qaeda operatives in Pakistan and the seizure of computers produced evidence that prompted American officials to issue specific terror warnings.

According to U.S. and Pakistani officials, the arrest of a 25- year-old computer expert on July 13 led to the discovery of a treasure trove of information on al Qaeda's secret information system.

SHEIKH RASHID AHMED, PAKISTANI INFORMATION MINISTER: We have arrested a computer master, and we got some information from his computer and from his e-mails.

VERJEE: The computer master has been identified by one U.S. official as Mohammed Naim Noor Kahn (ph). But Pakistani officials say it could be an alias. It appears he transmit cryptic coded messages to al Qaeda suspect, codes apparently cracked by U.S. investigators.

It was this coded information, U.S. and Pakistani officials say, that was mainly responsible for the increased threat level. And U.S. Homeland Security Chief Tom Ridge stressed Pakistan's vital role and support.

TOM RIDGE, HOMELAND SECURITY SECRETARY: The reports that have led to this alert are the result of offensive intelligence and military operations overseas, as well as strong partnerships with our allies around the world, such as Pakistan.

VERJEE: Another computer was seized after the capture last week of Ahmed Khalfan Ghailani, a senior al Qaeda suspect wanted for the twin embassy bombings in 1998.

He was captured in central Pakistan. American officials say Ghailani's arrest was not linked to the latest terror alert, but the Pakistani government says e-mails in his computer revealed plans to attack the U.S. and Britain. Pakistan says both suspects are being interrogated and is acting on new information.

AHMED: From this clue we have arrested other few peoples. So it is a big network.

(END VIDEOTAPE)

VERJEE: Wolf, Pakistani officials say they have arrested seven people since Ghailani was captured.

BLITZER: Let's get back, Zain, to this Mohammed Naim Noor Kahn. What specifically do they suspect was his role?

VERJEE: Well, according to a "New York Times" story that quotes a Pakistani intelligence official, Khan told investigators that couriers took messages from senior al Qaeda leaders who were in hiding to religious schools in Pakistan's tribal areas. Then other couriers would then bring those messages to Khan. And Kahn, for his part, would post them in code on Web sites or e-mail them and transmit them electronically -- Wolf.

BLITZER: Pretty sophisticated operation, at least on paper.

Thanks very much, Zain Verjee, reporting for us.

With al Qaeda eying America, there is growing pressure on the U.S. Congress to pass the reforms laid out in the 9/11 report.

For more on that, let's turn to our congressional correspondent, Ed Henry -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Wolf, the heightened terror warnings are giving the 9/11 Commission new impetus to get the recommendations implemented on Capitol Hill.

(BEGIN VIDEOTAPE)

HENRY (voice-over): 9/11 commissioners believe President Bush took a strong first step, but they urged Congress to act quickly, especially in the wake of the latest warnings of terrorist attacks.

TIMOTHY ROEMER, PRESIDENT, CENTER FOR NATIONAL POLICY: I can't think of a higher priority than implementing some of these reforms quickly and smartly and efficiently. Al Qaeda is not on a vacation schedule.

HENRY: Even before the threat level was raised, 9/11 Commission Chairman Thomas Kean spoke of the imminent danger. He testified Friday at the first of a slew of rare summer hearings on Capitol Hill.

THOMAS KEAN, CHAIRMAN, 9/11 COMMISSION: It is an emergency. There's an enemy out there who is planning as we meet here to attack us. HENRY: Commissioners will start hitting the road nationwide Tuesday to whip up support for their proposals. Since it's an election year, they want to keep the heat on lawmakers.

ROEMER: Well, I would strongly encourage the Congress to work in a bipartisan way to try to get a number of these recommendations, many of which are not new, implemented and protect this country so that when they run for reelection in November, they can run with a good conscience, fulfilling their job description and job responsibilities to defend and protect this great country.

HENRY: Democratic nominee John Kerry wants Congress called back for a special session to follow up hearings with legislative action this month. The president disagrees.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Congress has been thinking about some of these ideas. They can think about them over August and come back and act on them in September.

HENRY: The president prodded Congress to improve its own handling of intelligence, rather than simply shaking up the executive branch.

BUSH: There are too many committees with overlapping jurisdiction, which wastes time and makes it difficult for meaningful oversight and reform.

(END VIDEOTAPE)

HENRY: The 9/11 Commission will step up its push for reform tomorrow; 9/11 commissioners Bob Kerry and John Lehman will be testifying at a hearing on the House side. There will also be a Senate hearing on the plan for a national counterterrorism that President Bush endorsed today -- Wolf.

BLITZER: All right, thanks very much, CNN's Ed Henry, reporting

The battle for Iraq, that's coming next, heavy, heavy fighting in the holy city of Najaf. We'll tell you who the target is.

Plus, the former Defense Secretary William Cohen, he will join us live with his take on Iraq, the war on terror, other key developments.

Convention bounce, did John Kerry get one from his Boston extravaganza? And does it matter if he didn't?

Also, there's something new about a very old high-diving competition. It is our picture of the day. We'll get to all of that.

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

(BEGIN VIDEOTAPE)

ANNOUNCER: Survivors of a supermarket fire in Paraguay's capital say locked doors impeded their escape from the blaze that killed more than 300 people. The store's management denies doors were locked. Yesterday's fire is being called the country's worst disaster in more than 50 years.

Czech explosion. Officials in Prague are blaming gang activity for an explosion outside a casino that wounded 18 people. A grenade went off under a sports utility vehicle belonging the Israeli owner of the casino. His father was shot to death two years ago. No one has been charged in that attack.

Uprising anniversary. Western leaders paid tribute to the Polish fighters who revolted against the Nazi occupation in World War II. An estimated 200,000 Poles were killed in the 63-day Warsaw uprising that began on August 1, 1944.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: There was heavy fighting today in the Iraqi holy city of Najaf, home of the radical Shiite cleric Muqtada al-Sadr. A spokesman for al-Sadr says a gun battle erupted between militants protecting al-Sadr and U.S. Marines and Iraqi forces. U.S. military officials said the Marines were not involved in that action, but did come under fire while patrolling the city.

The Marines say they returned fire, killing two insurgents. Al- Sadr's militia battled U.S. forces for weeks in April, but fighting died down after a series of truces.

Joining us now with more on the latest fighting in Iraq, as well as the terror warnings here in the United States, the former Defense Secretary William Cohen.

Mr. Secretary, thanks very much for joining us.

First of all, in Iraq, did you notice yesterday a series of coordinated attacks against Christian churches in Baghdad and Mosul? Is this a new target or is this something we shouldn't be surprised is happening right now?

WILLIAM COHEN, CNN WORLD AFFAIRS ANALYST: Well, it is a new target. And there hasn't been this kind of violence directed at the Christian churches recently. Certainly, during the time that Saddam was in power, they didn't have that kind of concern because of his repressive tactics to make sure it didn't happen.

Now, the question becomes, is it religiously inspired or this part of the radical insurgency that we see taking place? I would think that, on the one hand, there are questions raised about whether it was Shia-related or whether this is Sunni-related. I think the Ayatollah al-Sistani speaking out and condemning it would be an indication that it really was the insurgency, the radical elements of that insurgency, trying to attack the Christian element. BLITZER: And these are not foreigners who go to these Christian churches in Baghdad. These are Iraqi Christians. There are about 700,000 of them. And they have been there for centuries.

COHEN: They are Iraqi citizens. And they are also indiscriminate in terms of who they kill. There are many Muslims of any faith who are there who are wiped out during the course of these bombing attacks.

So you have innocent Muslims who may be Shia. They may be Muslim. They may be Christian. And they are slaughtered in the same bombings. So they are barbaric. They are unmoved by any sense of conscience in terms of how many they want to kill in order to disrupt and destroy this interim government and drive the coalition forces out.

BLITZER: What's your take on this heightened terror alert level in New York, New Jersey and here in Washington?

COHEN: I think it's long overdue. We have known for a long time now that they have been planning these types of attacks, if go back to the Hart-Rudman commission report that started in 1999, a three-part report, warning that we are going to see attacks on American soil perhaps using chemical and biological agents.

And if you have to have any foresight at all and say where will they attack, financial centers, political centers and also entertainment centers, Hollywood, etcetera. So it's not rocket science to understand what they're trying to do. And we should have been on a much higher state of alert for a long period of time now. So this doesn't come as a surprise. The specificity of the individuals involved who may be part of this planning does come as news. And that's good news for us to be cracking down as much as we can on those individuals.

BLITZER: When I interviewed the homeland security secretary, Tom Ridge, about a year or so ago, when they were occasionally doing the threat level alert going from yellow to orange nationwide, I said, why not just target one area, the most vulnerable areas, the targets that are most likely, instead of making people in Kansas or Wyoming heighten up their security preparations as well?

He said, the downside of doing that is that you sort of advertise where there aren't higher threat levels, where there aren't higher security precautions and you're in effect giving information to terrorists. They've obviously thought through that and rejected that stance going into this regional higher level of security.

COHEN: But, as a practical matter, the terrorist groups are going to target those cities and those areas and those instruments of our prosperity that are most vulnerable in terms of the impact it will cause, the chaos in terms -- and the loss of prosperity for our country.

So in Kansas or some of the other areas of the country, they're not going to be on high alert, as you would in New York City, here in Washington, D.C. or in Los Angeles or Chicago. Those are the centers that the terrorists are most likely to go.

To the extent that you increase your awareness, warnings of heightened alert, that may drive the terrorists or draw the terrorists into other areas. But the impact will be less. And I think that what we have to do is focus on financial centers, political centers and also entertainment centers.

BLITZER: William Cohen, the former defense secretary, thanks for joining us.

COHEN: My pleasure, Wolf.

President Bush says he's in favor of having a national intelligence director. We'll go on the trail to get John Kerry's reaction.

And, staying with politics, there was no convention bounce, for all practical purposes. Should Democrats be deflated? Our Brian Todd, he will join us with more on that.

First, though, a quick look at some stories you may have missed this past weekend.

(BEGIN VIDEOTAPE)

ANNOUNCER: Train trouble. About 20 cars of a freight train derailed in northeast Kentucky, rupturing a natural gas line. Authorities evacuated 45 nearby residents for two hours.

Deck collapse. At least 80 people were hurt when a 14-foot-high deck collapsed at a popular night spot in western Montana, the Diamond Horseshoe Casino. Authorities are investigating.

Born to run. Disabled runners braved the rain to join in a marathon in New York's Central Park. They runners included Iraq war amputees.

And that's our weekend snapshot.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: As we reported, President Bush today endorsed several recommendations of the 9/11 Commission, including the plan to create a new position for a national intelligence coordinator. It took Democratic nominee John Kerry only a few moments to react to the president's announcement.

CNN's Judy Woodruff takes us on the campaign trail.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN ANCHOR (voice-over): John Kerry says he's pleased with President Bush's decision to support the appointment of a national intelligence director, but Kerry says the president needs to do more.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: If the president had a sense of urgency about this director of intelligence and about the needs to strengthen America, he would call the Congress back and get the job done now.

WOODRUFF: Kerry campaigned in Grand Rapids, Michigan, earlier today, and he'll appear at a rally in Milwaukee, Wisconsin tonight.

After spending most of the weekend on the trail with Kerry, running mate John Edwards is campaigning solo in Florida today. President Bush is spending the day in Washington, but Vice President Cheney talked about the war on terror at Peterson Air Force Base in Colorado.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: This enemy is perfectly prepared to slaughter anyone, man, woman, or child, to advance its cause.

WOODRUFF: After leaving Colorado, the vice president headed for Texas.

Judy Woodruff, CNN, Washington.

(END VIDEOTAPE)

BLITZER: A new CNN/"USA Today"/Gallup poll shows Kerry and Bush effectively tied in the presidential contest. It suggests that Kerry got virtually no bounce at all from the Democratic Convention.

Our Brian Todd is joining us now live with more on this -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, not since 1972 has a candidate come out completely flat from a convention. And political watchers on both sides are struggling to find out what this really means.

(BEGIN VIDEOTAPE)

TODD (voice-over): Before the convention, Democrats argued John Kerry already had a bounce and wouldn't likely see much of one after Boston. Now that we seem to have a self-fulfilling prophecy on our hands and Kerry actually loses a percentage point among registered voters after the convention, is this a disaster for the Democrats?

AMY WALTER, CNN POLITICAL ANALYST: I think, if you are a partisan Democrat, you probably want to see something come out of Boston. At the same time, you look at a neck-and-neck race between a challenger and a sitting incumbent president. That incumbent president, actually, the weight is on him right now.

TODD: With the race so close all year, with so many voters apparently having made up their minds long ago, all the analysts we spoke to agree. Despite the millions spent on the Boston convention to showcase the candidate, there wasn't much of a bounce to get. KEATING HOLLAND, CNN POLLING DIRECTOR: This year, we're seeing a historically low number of persuadable voters. Only about one in seven, one in six, possibly even fewer than that, are persuadable, undecided voters.

TODD: Bounces also tend to fade as the fall debate season approaches. But history sends mixed signals on their importance; 1980, incumbent Jimmy Carter gets a bounce from the Democratic Convention that's huge by modern standards, 10 percentage points (AUDIO GAP) against a surging populist challenger; 1988, Michael Dukakis gets a 7-point bounce, compared with George Bush Senior's six- point surge after his convention.

But one analyst says the modest bounce for Bush was much more important and he couldn't have won that election without it. Popular rhetoric in recent years says the conventions have lost news value. If they don't matter as much, why would a bounce matter? Well, consider 1992. A young challenger has moved ahead of the Democratic pack, but is not yet a familiar national figure. Bill Clinton dominates his convention. It's the largest bounce in modern political history, 16 points, and has the juice to beat a vulnerable incumbent.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: And suddenly Clinton looked like a candidate of change, the message he sold to the convention, someone who could run the country. And after that convention, he never lost his lead.

(END VIDEOTAPE)

TODD: Coming out of this convention, Kerry certainly does not seem to have changed many minds, that despite convention TV ratings that were up from four years ago. It leaves the question, was this a massive opportunity squandered or has interest in the campaign been so high all year long that few people are open to being swayed? That's a question that may not be answered until the fall, Wolf.

BLITZER: When you say the fall, that would be November 2.

TODD: November 2.

BLITZER: The day of the election.

TODD: That's right.

BLITZER: Brian Todd, thanks very much for that explanation.

The results of our Web question of the day, that is coming up.

Plus, bridge jumping, it is not an Olympic sport, but it is a thrill we should watch.

(COMMERCIAL BREAK)

BLITZER: Here are the results of our Web question of the day. Take a look at this. Remember, this is not a scientific poll. What is believed to be the world's oldest high-diving competition has moved to a new bridge. Ever since 1664, divers have been jumping off a bridge at this site in Mostar, Bosnia. The bridge was destroyed 11 years ago during the Balkans War. A new bridge was completed late last month. Now the competition has been held on the new bridge for the first time. And that's our picture of the day.

That's all the time we have. "LOU DOBBS TONIGHT" starts right now.

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