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CNN Wolf Blitzer Reports

Palestinians Prepare for Arafat's Funeral

Aired November 11, 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: Happening now. You're looking at a live picture of Ramallah. Palestinians there are working around the clock, they're preparing the gravesite of Yasser Arafat.
Crowds of mourners already waiting to pay their respects.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

(voice-over): Yasser Arafat's final journey. As Palestinians mourn their national symbol, does his death finally open the door to peace or a new wave of violence?

Fight for Iraq. Troops punish Falluja but pay a heavy price.

From Baghdad to Mosul, the insurgents strike back.

Veteran's Day. Money could be tight for military families.

UNIDENTIFIED FEMALE: It's been a rollercoaster to lose your breadwinner.

BLITZER: It's a lot tougher for families of the fallen.

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, November 11, 2004.

(END VIDEOTAPE)

BLITZER: Yasser Arafat spent most of his life in exile and traveled the world to press the Palestinian cause. He died far from home. Now, in just the past hour, his body has been brought back to the Middle East for a funeral in the land of his birth and burial in the land where he fought to create his state. We begin our coverage today of CNN with CNN's Ben Wedeman. He's joining us live in Cairo -- Ben.

BEN WEDEMAN, CNN CORRESPONDENT: Yes, Wolf, Yasser Arafat died this morning and the Egyptian authorities have been busy throughout the day preparing for his arrival. As you mention, he arrived in the Egyptian capital just about one hour ago. But this was the Palestinian leader's final journey after a long life of exile.

(BEGIN VIDEOTAPE) (voice-over): At a solemn ceremony outside Paris, Yasser Arafat begins his last journey home accompanied by his wife Suha and senior Palestinian officials. The first leg of the trip taking him to Cairo where Egyptian authorities are rushing to finalize preparations for what is being described as a military funeral for the Palestinian leader.

Opening the Egyptian parliament, President Hosni Mubarak led lawmakers in a minute of silence in honor of Arafat who was born in Egypt and studied here. His return welcomed in the streets of the Egyptian capital.

UNIDENTIFIED MALE: In our country will be his country, his second country. Today Egypt will be his mother country because he lived here and learned here. So he deserves to be here and Egypt is the mother of the Arab world.

WEDEMAN: From Cairo, Arafat's body will be flown by helicopter to Ramallah and the West Bank where workers spent Thursday building a mausoleum. Not his final resting place, insists Palestinian officials. Arafat wanted to be buried on the grounds of Jerusalem's Al Aqsa Mosque but with the future of Jerusalem at the heart of the conflict between Israel and the Palestinians that wish may not be realized for many years to come.

(END VIDEOTAPE)

WEDEMAN: And Wolf, the ceremony that's scheduled to take place here in Cairo tomorrow morning is going to be relatively brief, we're told. Just 25 minutes. That inside a military compound, not far from Cairo International Airport after which he will be flown on an Egyptian military helicopter to Ramallah in the West Bank. Back to you, Wolf.

BLITZER: Ben Wedeman in Cairo, thank you very much. Palestinians have gathered outside Yasser Arafat's West Bank headquarters in Ramallah to mourn the man who was their national icon. CNN's John Vause is in Ramallah. He's joining us now live -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Wolf. After all the conflicting reports, the confusion and the rumors, finally today Palestinians were told their leader is dead and the time has come to grieve.

(BEGIN VIDEOTAPE)

(voice-over): The waiting was finally over bringing tears, mixed with anger.

UNIDENTIFIED MALE (through translator): Abu Amar shouldn't have died. He's all we got (ph). All the people are crying for him.

VAUSE: But mostly it seems there was shock, Yasser Arafat's time as the only leader of the Palestinian people had passed.

You have left the earth but you have not left our hearts, this man yelled from the main square in Ramallah.

Palestinians took to the streets. "With our souls and our blood we sacrifice to you," they chanted. The slogan reserved for martyrs to the Palestinian cause.

Children dressed as militants marched with those from the Al Aqsa Martyrs Brigade. They brought a promise to abide by the decisions of the Palestinian Authority.

Thick black smoke from burning tires hung over Ramallah.

Because of the Israeli occupation when you are sad you burn tires, this boy said.

On this day, Arafat's failings were forgotten.

UNIDENTIFIED MALE: I think he was one -- one of the greatest men in the world.

VAUSE: But there's also anxiety. What will the world be like without Arafat? A promising sign the speaker of the Palestinian parliament was sworn in as interim leader for 60 days. For now at least an orderly transfer of a power but politics and election seem a distant thought. For now, Palestinians are preparing to lay Yasser Arafat to rest in his West Bank compound. By nightfall more than a thousand mourners crammed the streets outside the main gate. And many cannot imagine life without the man who often seemed larger than life.

UNIDENTIFIED MALE: I don't think it's real. Maybe we're waiting for a miracle.

(END VIDEOTAPE)

VAUSE: And, Wolf, those preparations continue at this hour. Just a few hours really now before Arafat's body is flown from Cairo to the West Bank compound here in Ramallah. If we look closer at the compound, the compound where Yasser Arafat was kept under virtual house arrest for almost three years. The lit area in the center of the compound is where Arafat will be laid to rest in what they call a movable monument. Movable because the Palestinian Authority hopes that one day they will eventually be able to lay Arafat to rest permanently, bury him in east Jerusalem in the Al Aqsa Mosque which was his wish, part of his will.

But in fact, if Yasser Arafat cannot go to Al Aqsa Mosque, at least for now, but at least part of the Al Aqsa Mosque will come to him. A senior Islamic cleric from Jerusalem will bring soil from the Al Aqsa Mosque and spread it around the compound.

Right now, mainly workmen in the compound. The mourners have left for the evening. We are told that it will be mostly VIPs here tomorrow. Following that though, Palestinians will be given three days to arrive at this compound to pay their respects to the Palestinian leader -- Wolf.

BLITZER: John Vause reporting for us from Ramallah. Thank you very much. We'll have much more coming up on Yasser Arafat's legacy. But there's another important story we're following.

U.S. military officials in Iraq say the battle of Falluja is in a new stage of fierce house to house fighting. They say it has come at a very high cost. Since the start of the offensive on Monday at least 18 American troops have been killed, 178 have been wounded. Fighting along the side of the Americans are Iraqi soldiers. So far five Iraqi troops killed and 34 Iraqis have been wounded. As far as the insurgents are concerned, a rough estimate puts the number of insurgents killed at more than 500. But insurgents are also on the attack in other cities throughout Iraq. CNN's Karl Penhaul has more now on the fighting and a surprise discovery.

(BEGIN VIDEOTAPE)

KARL PENHAUL, CNN CORRESPONDENT (voice-over): With hand signs, this man explains how he was blindfold and chained by the wrists and ankles. Held hostage in an insurgent slaughter house in Falluja, according to U.S. marines. Now, he's free from his shackles and under the watchful eye of his rescuers, he's getting hospital treatment for cuts and bruises.

UNIDENTIFIED MALE: I never thought I would be free again. I thought I was going to die. Today, early this morning, I heard American voices. And I asked myself, what is going on? American voices, and they started shouting and shouting. And they broke down the door and they rescued me.

PENHAUL: Iraqi and U.S. marine commanders said they found other houses where rebels imprisoned hostages.

UNIDENTIFIED MALE: We have found hostage slaughterhouses in Falluja that were used by these people and the black clothing that they wear to identify themselves.

PENHAUL: It's not clear whether any of the foreign kidnap victims were beheaded in such slaughterhouses. Coalition forces say they now control about three quarters of the rebel stronghold. Marines are still battling pockets of resistance, street by street and house by house. Elsewhere across the city, marines destroyed weapons caches like this haul of anti-tank blinds. Overall, U.S. commanders say they've faced lighter resistance than originally anticipated. But this pool of smoke over the Baghdad skyline is ample evidence the insurgents still pose a huge threat elsewhere in Iraq. Survivors of this massive suicide car bomb, a drag to safety. The dead lie charred in blazing vehicles or in the rubble of buildings.

UNIDENTIFIED MALE: This explosion was done by terrorists. These terrorists are against the country and against Iraq. They are against peace and they don't want it. This is murder.

PENHAUL: In Mosul these resistance gunmen took to the streets in solidarity with their comrades in Falluja. They torched at least three police stations in Mosul overnight and fought gun battles with police, authorities said.

UNIDENTIFIED MALE (through translator): We are terrorists to terrorize the enemy of God, to terrorize the Iraqi national guards in Falluja who are fighting our brothers.

PENHAUL: Since Monday, the day the Falluja offensive began, insurgents have struck in Baghdad, Balad, Baquba, Karbala and Mosul. Falluja may have almost fallen but Iraq's anti-coalition rebellion has not lost its deadly punch.

Karl Penhaul, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: CNN's Jane Arraf is with the U.S. Army. She's embedded with American troops in Falluja. She is joining us now live on the phone. What's the latest from your vantage point -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Wolf, the latest is that U.S. tanks and troops -- I don't know if you can hear that, explosions behind me, have moved into the south of Falluja for the first time. This is Task Force 22 of the 1st Infantry Division. And they are clearing the way through these parts for the Marines to take over parts of the city that they haven't been in before.

Now, as we came through here, they made a breach point with suppressing (ph) fire that included wired-guided missiles as well as tank fire, huge explosions lighting up the sky. Some of the houses set on fire were still burning.

We have seen very few -- in fact, we have seen no civilians, Wolf. There was an -- Iraqi forces have been scheduled to go and find what they believed would be pockets of civilians still in the area who either refused or were unable to leave. It's not clear whether they found any -- Wolf.

BLITZER: Jane, any idea, anybody saying over there how much longer this is expected to continue?

ARRAF: They won't say, but we spoke with one of the Marine generals earlier today who told us he believes that the Marine effort was ahead of schedule, actually. Still, this is -- given the fighting that is going on and even if there is sporadic resistance, it is still out there, almost every block that we went through.

The industrial section was wired and either had land mines or explosive devices. Insurgents still shooting from rooftops from buildings. This will take quite a while -- Wolf.

BLITZER: Jane Arraf reporting for us. Just do recap, 18 American troops at least have already been killed. More than 170 American troops have been wounded. We'll continue to watch the story. More coming up later this hour.

To our viewers your chance to weigh in on the story. Our "Web Question of the Day" is this: How will having new Palestinian leadership affect the prospects for peace in the Middle East? Increase, decrease, or will there be no change? You can vote right now, go to cnn.com/wolf. We'll have the results for you later in this broadcast. After Yasser Arafat, what now for the Palestinians and for the Israelis?

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI FINANCE MINISTER: It may be an opportunity for the tragedy to be replaced by hope. The tragedy was that Arafat who had the power and prestige to move his people to peace instead moved them and us into a terrible war of terror.

(END VIDEO CLIP)

BLITZER: My interview with the former Israeli prime minister, Benjamin Netanyahu, that's coming up.

An apparent kidnapping in front of horrified witnesses and a surveillance camera. Will the videotape lead police to a victim?

Plus, a network movie special tonight, but why some stations around the country are now deciding not to air "Saving Private Ryan." We'll tell you. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM 2002)

YASSER ARAFAT, PRESIDENT, PALESTINIAN AUTHORITY: When I was a small boy I used to play side by side -- I was living with my uncle in Jerusalem (UNINTELLIGIBLE) area. And I used to go as a small boy to play with the Jews in the Jewish quarter, and they used to come to play with me in my area. You forget this? I tend to forget. I was a small boy, but it's still in my mind. Historically we were living together. We never -- you know now that now what we call them, Jews? You know what we call them? Our cousins. Still it is a popular -- pronounce. We never say Jews. We say, he is one of our cousins because spiritually we are cousins.

(END VIDEO CLIP)

BLITZER: That was from my interview with Yasser Arafat at his Ramallah headquarters, the Muqata, in May of 2003. It's there at the Muqata he will be buried tomorrow. May of 2002, that is.

Earlier today I spoke with one of his long-time critics, the former Israeli prime minister and the current finance minister, Benjamin Netanyahu. He joined me from Jerusalem.

(BEGIN VIDEOTAPE)

Mr. Minister, welcome back to CNN. Thanks very much for joining us.

What happens now that Yasser Arafat is dead?

NETANYAHU: It may be an opportunity for a tragedy to be replaced by hope. The tragedy was that Arafat, who had the power and prestige to move his people to peace, instead moved them and us into a terrible war of terror that cost thousands of lives, Israelis and Palestinians alike. This is the man who also pioneered international terrorism, the art of hijacking planes, ships, kidnapping and seizing of hostages, and you name it, which gave birth, of course, to other terrorist groups who emulated him, including al Qaeda.

So his demise opens an opportunity that wasn't available when he was there for more moderate leadership to emerge. Will it emerge? That really remains to be scene. There is a toxified society that has to be detoxified. And I think President Bush had it exactly right when he said that the test of this leadership would be that it follows more civil norms, that it fights terrorism, and fights corruption, it fights the terrible incitement against Israel. And If such a leadership emerges, I assure you, that everybody in Israel will embrace them and will actually engage in the enthusiasm in a political process for peace.

On the other hand, you could have here a battle of succession of militant gangs and great upheaval, and it's too early to say. I think we have to take a look.

But at least we're discussing this possibility, and we couldn't do so as long as Arafat ruled the Palestinians, because he simply made peace impossible.

BLITZER: There was a moment in the '90s when you were prime minister. You met with Yasser Arafat, Bill Clinton, the president of the United States put together the Wye negotiations, plantation negotiations. You were at the White House. We're showing our viewers some pictures of that right now. There was a moment where you were willing to negotiate with Yasser Arafat but it didn't work out, obviously, the way everyone had hoped. What happened?

NETANYAHU: Well, I inherited the Oslo Agreements which essentially gave Arafat a good chunk of land right next to our major cities, gave him a small army, gave him international access to the White House and to respectability, even gave him a Nobel Prize. The deal was that he was supposed to in exchange fight terrorism and prepare his people for peace. He did the exact opposite. And I as I inherited the Oslo Accords I could that see he wasn't doing anything. So at Wye and previously in the Hebron agreement I put milestones of what he has to do. He has to do certain things for us to do certain things. And we started moving that way very slowly.

I must say that the terror stopped when he was forced to cough up real things, substantial -- substantive things. I think that was the only way to proceed with him but I had no illusions that this could be sustainable because he never -- I could never really get from him that change of mind that says, this is not a tactical ploy. I'm not getting these concessions for Israel in order to set up a state next to Israel. I'm really going to set up a state instead of Israel. I think this was what differentiated him from the late Egyptian president Anwar Sadat who said peace is peace. No more war, no more bloodshed. He meant it. We have peace with Egypt. The same thing with the late King Hussein of Jordan. Arafat didn't mean it. That's the whole problem. BLITZER: What about the new Palestinian leadership, the interim leadership, if you will. Mahmoud Abbas, Ahmed Qorei. These leaders who now will now take over at least for the time being. Are these Palestinians with whom the Israeli government, your government can negotiate?

NETANYAHU: Well, I'm not going to speak of any particular person, personalities even though obviously I met both gentlemen, and spent a lot of time with them. I think, again, the president -- President Bush put forward a very clear criteria. I think the first one is fighting terror. You can't have peace and terror. If there's one thing we learned with this terrible decade with Arafat, is that you can't have terror and peace co-existing. The test of a peacemaker is that he fights terror. He may not succeed all the time but he has to make an effort all the time. A real effort.

In the case of Arafat he thought he could have it both ways, and of course, you can't and nor can peace. So the test of anyone coming to leadership right now, a leadership position, is to make that fateful choice between peace and terror. We can only hope in Israel -- I think the entire country right now is praying, perhaps the entire world is praying that a new and responsible leadership emerges that will do what is required of a serious leadership. Fight terror, embrace peace.

(END VIDEOTAPE)

BLITZER: The Israeli finance minister, the former prime minister Benjamin Netanyahu speaking with me earlier today from Jerusalem. Coming up later this hour, more, also of my interview with Yasser Arafat. The interview that was conducted almost two years ago in Ramallah at his headquarters.

Up next, though, on the front lines in Falluja.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Watch out!

(END VIDEO CLIP)

BLITZER: Urban combat up close. It's not pretty. What are U.S. force facing right now?

Also this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Have your paycheck stopped the day your husband is killed and then asked to give back what they ever paid you because your husband died. It can be traumatic.

(END VIDEO CLIP)

BLITZER: War widows and war widowers facing very harsh economic realities. Police scour surveillance tape looking for clues to an apparent kidnapping. The latest on the investigation, all that coming up.

(COMMERCIAL BREAK)

BLITZER: It's Veterans Day and a particular poignant one with U.S. troops on active duty in Afghanistan and Iraq. Traditional observances here at home including a wreath laying ceremony at the World War II memorial in Washington, the first there since the site opened earlier this year. There were also parades including this one in Jacksonville, Florida, among the country's largest according to the city. This year's theme, "Heroes Then and Now." And Houston was one of several Texas cities honoring veterans with a parade. The event is called "Houston Salutes American Heroes." This was its sixth year.

President Bush marked the day with a traditional wreath laying ceremony at the Tomb of the Unknowns at Arlington National Cemetery. In his speech he offered the country's respect and gratitude not only to the millions of veterans living and dead but to those of the future, as well.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Some of tomorrow's veterans are in combat in Iraq at this hour. They have a clear mission: to defeat the terrorists and aid the rise of a free government that can defend itself. They are performing that mission with skill and with honor. They are making us proud. They are winning.

(END VIDEO CLIP)

BLITZER: Families of American forces killed in Iraq are having to deal with terrible emotional pain. But their ordeal doesn't stop there. Joining us now with more on this on this Veteran's Day CNN's Thomas Roberts -- Thomas.

THOMAS ROBERTS, CNN CORRESPONDENT: Hi, Wolf. Good afternoon. You know, losing a loved one to war is devastating for military families and it hits especially hard for them, financially.

(BEGIN VIDEOTAPE)

(voice-over): Chelle Pokorney is 33, the mother of a 4-year-old daughter and a widow with a lot on her mind.

CHELLE POKORNEY, MILITARY WIDOW: I often ask, will I die of a broken heart because some days I feel like I could because I miss him.

ROBERTS: Before her husband, Marine Lieutenant Fred Pokorney was killed in action in Iraq, money was tight. Now...

POKORNEY: It's been a rollercoaster. To lose your breadwinner every day seems to be a struggle and to know which way to turn.

ROBERTS: Military family death benefits include a one-time payout of $12,000. Monthly, surviving spouses receive $967. And each dependent child receives $241. If a spouse remarries benefits cease. Chelle and hundreds of other families are also being helped privately. One such financial guardian angel the Intrepid Fallen Heroes Fund.

BILL WHITE, INTREPID FALLEN HEROES FUND: We don't consider ourselves a charitable organization. The military isn't charity. It's our duty and it's what we owe these families nothing less than our gratitude and support.

ROBERTS: Without strings, a military family receives $11,000 and each child receives $5,000. To date the fund has given out $8 million.

POKORNEY: I cannot provide the life for her that Fred and I were going to provide, no matter how hard I work. It's going to be less than. Even with what I was given, the benefits that we're entitled to, it's going to be a different lifestyle for us.

(END VIDEOTAPE)

ROBERTS: Most military families pay for optional life insurance. It's a benefit of $250,000. But what we learned researching in this report is that as many as 10 percent of the enlisted, that is, the 19- to-24-year-olds, they opt out of that extra coverage, Wolf, and it leaves families pretty much on hard time when it comes to finances.

BLITZER: A pretty sad story, especially on this Veterans Day.

Thomas Roberts, thanks very much.

ROBERTS: You're welcome.

BLITZER: You have heard about the deadly urban combat in Iraq. Just ahead, we're going to show you something different, a vivid close-up look at the actual fighting in Falluja.

And will the death of Yasser Arafat increase chances for a Middle East peace settlement? We'll tell you what the Bush administration is saying.

And why your local television station may not be showing you "Saving Private Ryan" tonight. We'll explain what is going on. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

More now on our top story, the death of Yasser Arafat. The Bush administration saw Arafat as corrupt and incorrigible and it kept its distance. Will Arafat's death now open up new opportunities for peacemaking?

For that, let's turn to our State Department correspondent Andrea Koppel -- Andrea. ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: Wolf, the answer is that it certainly could, but a lot of that depends on, among other things, who the Palestinian people choose as their new leaders and how the United States and Israel respond to those choices.

(BEGIN VIDEOTAPE)

KOPPEL (voice-over): From Europe to the Middle East, a king, presidents and foreign ministers all announce plans to attend Yasser Arafat's funeral, but President Bush won't be traveling to Cairo. Neither will his secretary of state, the last Cabinet member to meet Arafat in April 2002. Instead, Mr. Bush is sending Assistant Secretary of State William Burns, several ranks below Colin Powell.

GEORGE MITCHELL (D), FORMER U.S. SENATOR: Obviously, it will be disappointing to them. They would have hoped, I think, for a higher- level delegation, but I don't think it's going to have any lasting impact.

KOPPEL: Some experts believe the key will be for President Bush to act quickly to empower Arafat's successors to prevent Hamas or other extremist groups from attacking Israel.

JAMES RUBIN, FORMER STATE DEPARTMENT SPOKESMAN: The problem isn't so much the peace process. The problem is the lack of accountability and real leadership.

KOPPEL: Elections for a new Palestinian Authority president are scheduled to take place in 60 days. Until then, Prime Minister Ahmed Qorei and former Prime Minister Mahmoud Abbas, both familiar faces to the U.S. and Israel, considered moderates, but lacking Arafat's grassroots support and charisma, will be among those sharing day-to- day responsibilities. Some Palestinians are openly calling on the U.S. to help.

SAEB EREKAT, CHIEF PALESTINIAN NEGOTIATOR: Help us with the elections. Help us resume a meaningful peace process.

KOPPEL: U.S. allies have also begun urging the Bush administration to consider appointing a Middle East envoy and to use U.S. influence with Israel to offer confidence-building measures, such as releasing Palestinian prisoners, freeing up Palestinian assets, and easing up on closures in the West Bank and Gaza.

(END VIDEOTAPE)

KOPPEL: Suggestions British Prime Minister Tony Blair expected to raise when, on the same day as Yasser Arafat's burial and funeral, he meets with a newly reelected President Bush here in Washington -- Wolf.

BLITZER: Andrea Koppel at the State Department, thanks very much.

I interviewed Yasser Arafat inside his Ramallah compound in may of 2002. We covered a number of topics, including the future of an independent Palestinian state.

(BEGIN VIDEOTAPE)

BLITZER: I remember as a younger reporter and you were a younger man, I was in the U.N. General Assembly, I think it was 1974, and you spoke of an olive branch.

YASSER ARAFAT, PRESIDENT, PALESTINIAN AUTHORITY: Yes.

BLITZER: Are you closer today to an independent Palestinian state that will live alongside in peace with Israel than you were then?

ARAFAT: Yes. And don't forget, when I left Beirut, and you remember...

BLITZER: I was in Beirut then.

ARAFAT: Yes. When they ask me, where are you going, Arafat, I said to them, to Palestine. And now we are in Palestine. And we hope that we will have this independent state side by side with Israel, Israeli Jewish state.

BLITZER: That's a significant statement you just made.

ARAFAT: No, for me, not to forget, our colleague, our cousins, and in Palestine, we are Jews and we have very good relations with them.

BLITZER: Are you prepared now to promise the United States, the people of Israel, people of Palestine, everybody, that you, Yasser Arafat, the president of the Palestinian Authority, will do everything you possibly can to prevent terrorism?

ARAFAT: No doubt. This is my policy from the beginning. Although, there are some, I don't want to say their names, some international power are supporting this.

BLITZER: Iraq?

ARAFAT: I am not speaking names. I will not mention any names, have supported them.

BLITZER: Iran?

ARAFAT: I am not saying names. I am saying that and their leaders, their main leaders is not here. Their main leaders are outside. And in spite of that, I am following, and this what have been decided in our leadership, in our cabinet, in our executive committee, and have been accepted by all the Palestinians, and have been accepted by the majority of the Israeli people. And I am very happy that is big majority of the Israeli people are with the peace.

BLITZER: They would be ready to make peace if they are convinced you were sincere. Remember when Sadat...

ARAFAT: They know that I am...

BLITZER: Remember when Sadat came to Jerusalem in 1977?

ARAFAT: Yes. But not to forget...

BLITZER: They were convinced, because Sadat was sincere.

ARAFAT: Not to forget, I used to go to the house of my partner...

BLITZER: Rabin.

ARAFAT: I used to go to the house of Prime Minister Barak. I used to go to many places there. You know that.

BLITZER: Shimon Peres.

ARAFAT: With Shimon Peres. And not to forget, there is a permanent contact between us and Israelis, still now, for the peace. The last meeting took place in Paris between our speaker and the speaker of the Knesset (UNINTELLIGIBLE) and they prevented him to continue his mission.

BLITZER: Thank you very much, Mr. President.

ARAFAT: Thank you.

(END VIDEOTAPE)

BLITZER: Yasser Arafat speaking with me two years ago-plus, May 2002 in Ramallah.

Right now, U.S. forces are involved in the largest urban combat offensive since the Vietnam War. It's called the battle for Falluja.

CNN's Brian Todd is here with an up-close look at the reality of urban warfare -- Brian.

BRIAN TODD, CNN CORRESPONDENT: All right, Wolf, we undertook this with the idea to give viewers a real-time sense of how dangerous and chaotic street-by-street combat really is. We went through reams of network pool feeds from Falluja and were able to piece together some dramatic sequences from a soldier's-eye view.

(BEGIN VIDEOTAPE)

TODD (voice-over): A wall is no cover if you are on the wrong side of it. In seconds, everything can change, from taking a defensive position to looking for an enemy who disappeared or the lure he's left behind.

UNIDENTIFIED MALE: Check it for booby traps.

TODD: Don't tell these guys the most dangerous insurgents have left Falluja. Here, every corner, pile of rubble, dark room or rooftop could be the last thing you see. UNIDENTIFIED MALE: Watch out. Watch out. Let me get a shot.

TODD: In one sequence, a cameraman is in the middle of an American unit taking fire in an alleyway. It's a tight cluster of buildings. The Americans at first can't tell if they are being targeted from eye level or above.

UNIDENTIFIED MALE: Where is he?

UNIDENTIFIED MALE: Hey, you got him?

TODD: With the help of a spotter on an adjacent rooftop the Americans think they have got a read on him.

UNIDENTIFIED MALE: Hey, he's on the garage!

UNIDENTIFIED MALE: This one right here?

UNIDENTIFIED MALE: Yes!

UNIDENTIFIED MALE: He's in there!

UNIDENTIFIED MALE: We've got friendlies on the roof!

UNIDENTIFIED MALE: Everybody, (UNINTELLIGIBLE).

TODD: The Americans open up. More confusion.

UNIDENTIFIED MALE: Hey, is that friendlies on the roof?

(CROSSTALK)

UNIDENTIFIED MALE: On the roof!

TODD: Whoever they are looking for escapes the camera's eye in this sequence. The combat team keeps firing from behind walls and backed up against them. Then a break, maybe.

UNIDENTIFIED MALE: Hey, he's wounded in between these two houses. I don't know how far down third squad is.

TODD: They blast into doorways and run in. We don't know if they found their attacker. We know they found weapons. In other quadrants of the city, the fighting is only slightly more distant, weapons stashes found everywhere.

UNIDENTIFIED MALE: I've got one RPG round, two mortar tubes, numerous AK-47 magazines.

TODD: A captain relays his group's immediate orders, but might as well be speaking for all coalition units.

UNIDENTIFIED MALE: This area right here was templated to be an enemy stronghold, this whole industrial area. So we knew we were going to have to clear it building by building, street by street.

TODD: Or inch by inch.

(END VIDEOTAPE)

TODD: What you have just seen is footage from cameramen who are embedded with coalition units in Falluja. Under the rules of embedding, we're not allowed to give you some details that would compromise operational security. That includes the various locations where the video was shot and in some cases the names of those military units.

But, Wolf, every day, we're getting some more dramatic pictures from Falluja. And you get that real sense of -- the cameramen are right there alongside these guys.

BLITZER: It's a scary, scary situation. Brian, thank you very much. It brings home the reality of warfare to our viewers.

You have heard Bill Cosby's controversial comments about young African-Americans. Now the outspoken comedian is responding to his critics. He's speaking to our Paula Zahn.

When ABC shows "Saving Private Ryan" tonight, some local stations will be running other shows instead. We'll tell you why.

And there's new dramatic videotape of an apparent abduction. Why didn't anyone try to stop it?

Stay with us.

(COMMERCIAL BREAK)

BLITZER: A dramatic videotape recorded Sunday and released by police yesterday is raising questions. Who is the woman? Who grabbed her? And why didn't anyone try to help her?

CNN's Thelma Gutierrez has the story.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): At this discount mall in Corona, California, a woman appears to be abducted from this parking lot.

UNIDENTIFIED MALE: This is our victim here.

GUTIERREZ: The chilling scene is caught on tape by security cameras.

UNIDENTIFIED MALE: You can visually see the vehicle pull up behind her.

GUTIERREZ: In the tape, you see a young woman walking in the parking lot with more than a half-dozen shoppers around her. A car pulls up. The woman looks back and begins to run as fast as she can across the parking lot.

UNIDENTIFIED MALE: He catches her right about here, grabs her in a bear hug.

GUTIERREZ: The man throws her over his shoulder and shoves her into the trunk of the car, then speeds away.

SGT. JERRY RODRIGUEZ, CORONA POLICE DEPARTMENT: We do know from one of the store clerks that she was actually screaming for help for somebody to call the police.

GUTIERREZ: But Corona, California, police say none of the shoppers who were nearby either called them or came to her aid. The call to 911 was placed by a mall security guard who witnessed what detectives say appears to be a kidnapping.

(on camera): But that's where investigators say their trail goes cold. They have not identified the young woman or the suspects. And they say they have no reports of a missing person who matches her description.

(voice-over): The woman appears to be in her late teens or early 20s. She has medium build and was last seen wearing jeans, a hooded sweatshirt and a white T-shirt. Police say the suspect vehicle is a newer black two-door hatchback, possibly a Toyota Solara with a spare right front tire.

Thelma Gutierrez, CNN, Los Angeles.

(END VIDEOTAPE)

BLITZER: Saving the airwaves. Coming up next, find out why you may not be able to watch "Saving Private Ryan" to commemorate this Veterans Day. That's coming up.

(COMMERCIAL BREAK)

BLITZER: On this Veterans Day, when American troops are being killed in Iraq, there's controversy over an award-winning film about American soldiers who died for our country in another war. The film is "Saving Private Ryan," the issue, why several ABC affiliates are refusing to air it tonight.

CNN's Susan Lisovicz is joining us with more -- Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Wolf, we don't have a firm fix right now on the number of ABC affiliates that have refused to run the film. An ABC spokeswoman tells me that the situation is fluid and that the network itself doesn't know.

What we do know is this. Two years ago, the Federal Communications Commission said that "Saving Private Ryan" depicted a historical view of World War II and wartime atrocities and that offensive language was not presented in a pandering or titillating manner.

(BEGIN VIDEOTAPE)

LISOVICZ (voice-over): Steven Spielberg himself called "Saving Private Ryan" boot camp for the audience, yet, ABC twice aired the film that many say set a new standard for combat reality. And the Federal Communications Commission itself came to the network's defense afterwards, saying the Academy Award-winning movie was not indecent.

But that was the FCC before the Super Bowl wardrobe malfunction that cost CBS a record $550,000 fine. A number of ABC affiliates say they won't air "Saving Private Ryan" this Veterans Day, because they don't want a backlash from the FCC or groups like the American Family Association.

RANDY SHARP, AMERICAN FAMILY ASSOCIATION: People are energized. We want television to come back to a little bit safer realm for our children, especially during those prime-time viewing hours, when our kids are watching TV in their room.

LISOVICZ: But some observers say the surprise backlash against "Saving Private Ryan" has less to do with the timing of the FCC's decisions and more to do with the results of last week's election, when many voters say moral issues were a top priority.

PORTER BIBB, MEDIA ANALYST: Is this the latest result of exit polls and moral values in the red states? It's hard for anybody to take this seriously.

LISOVICZ: A senior staffer at the FCC tells CNN that the commission acts only in response to complaints and never before a program has aired.

UNIDENTIFIED MALE: Gratuitous raunch, gratuitous violence, gratuitous language, that is what is upsetting the public, not a storyline that might include violence, that might include some language, but it's essential to that story.

(END VIDEOTAPE)

LISOVICZ: An ABC spokeswoman says the network will indemnify any station that runs "Saving Private Ryan" tonight. In nonlegal speak, that means ABC would pay any fines if the FCC were to impose them -- Wolf.

BLITZER: Susan Lisovicz in New York -- thank you, Susan, very much.

The comedian Bill Cosby is standing by controversial comments he made earlier this year. Cosby said young African-Americans should pay less attention to pop culture and take more personal responsibility for their lives. In an interview to be aired tonight, CNN's Paula Zahn asks Cosby to respond to his critics.

(BEGIN VIDEO CLIP)

PAULA ZAHN, CNN ANCHOR: Their accusation is, in talking about the problems of the black community the way you have, you are basically, they say, saying blacks are their own worst enemy. True or false? BILL COSBY, COMEDIAN: Am I saying that? Not all. And I love my people. And I want my people to answer the call of our ancestors and the people who got an education and went to historically black colleges, graduated from medical school, law school, engineering school, in the face of odds. And I'm saying to these people, I don't think you know your history. Somebody has got to teach you.

(END VIDEO CLIP)

BLITZER: You can see more of the interview on tonight's CNN's "PAULA ZAHN NOW." That airs 8:00 p.m. Eastern, 5:00 Pacific -- Paula and Bill Cosby.

We'll have the results of our Web question of the day when we come back.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our Web question of the day.

Remember, we've been asking you this question. Take a look at the question. How will having new Palestinian leadership affect the prospects for peace in the Middle East? Forty-eight percent of you say it will increase the prospects, 15 percent decrease; 37 percent don't believe it will make much of a difference. Remember, this is not -- repeat, not -- a scientific poll.

A reminder, we're on weekdays 5:00 p.m. Eastern. We're also on weekdays noon Eastern. I'll see you back here tomorrow. Thanks very much for joining us.

"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 November 11, 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: Happening now. You're looking at a live picture of Ramallah. Palestinians there are working around the clock, they're preparing the gravesite of Yasser Arafat.
Crowds of mourners already waiting to pay their respects.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

(voice-over): Yasser Arafat's final journey. As Palestinians mourn their national symbol, does his death finally open the door to peace or a new wave of violence?

Fight for Iraq. Troops punish Falluja but pay a heavy price.

From Baghdad to Mosul, the insurgents strike back.

Veteran's Day. Money could be tight for military families.

UNIDENTIFIED FEMALE: It's been a rollercoaster to lose your breadwinner.

BLITZER: It's a lot tougher for families of the fallen.

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, November 11, 2004.

(END VIDEOTAPE)

BLITZER: Yasser Arafat spent most of his life in exile and traveled the world to press the Palestinian cause. He died far from home. Now, in just the past hour, his body has been brought back to the Middle East for a funeral in the land of his birth and burial in the land where he fought to create his state. We begin our coverage today of CNN with CNN's Ben Wedeman. He's joining us live in Cairo -- Ben.

BEN WEDEMAN, CNN CORRESPONDENT: Yes, Wolf, Yasser Arafat died this morning and the Egyptian authorities have been busy throughout the day preparing for his arrival. As you mention, he arrived in the Egyptian capital just about one hour ago. But this was the Palestinian leader's final journey after a long life of exile.

(BEGIN VIDEOTAPE) (voice-over): At a solemn ceremony outside Paris, Yasser Arafat begins his last journey home accompanied by his wife Suha and senior Palestinian officials. The first leg of the trip taking him to Cairo where Egyptian authorities are rushing to finalize preparations for what is being described as a military funeral for the Palestinian leader.

Opening the Egyptian parliament, President Hosni Mubarak led lawmakers in a minute of silence in honor of Arafat who was born in Egypt and studied here. His return welcomed in the streets of the Egyptian capital.

UNIDENTIFIED MALE: In our country will be his country, his second country. Today Egypt will be his mother country because he lived here and learned here. So he deserves to be here and Egypt is the mother of the Arab world.

WEDEMAN: From Cairo, Arafat's body will be flown by helicopter to Ramallah and the West Bank where workers spent Thursday building a mausoleum. Not his final resting place, insists Palestinian officials. Arafat wanted to be buried on the grounds of Jerusalem's Al Aqsa Mosque but with the future of Jerusalem at the heart of the conflict between Israel and the Palestinians that wish may not be realized for many years to come.

(END VIDEOTAPE)

WEDEMAN: And Wolf, the ceremony that's scheduled to take place here in Cairo tomorrow morning is going to be relatively brief, we're told. Just 25 minutes. That inside a military compound, not far from Cairo International Airport after which he will be flown on an Egyptian military helicopter to Ramallah in the West Bank. Back to you, Wolf.

BLITZER: Ben Wedeman in Cairo, thank you very much. Palestinians have gathered outside Yasser Arafat's West Bank headquarters in Ramallah to mourn the man who was their national icon. CNN's John Vause is in Ramallah. He's joining us now live -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Wolf. After all the conflicting reports, the confusion and the rumors, finally today Palestinians were told their leader is dead and the time has come to grieve.

(BEGIN VIDEOTAPE)

(voice-over): The waiting was finally over bringing tears, mixed with anger.

UNIDENTIFIED MALE (through translator): Abu Amar shouldn't have died. He's all we got (ph). All the people are crying for him.

VAUSE: But mostly it seems there was shock, Yasser Arafat's time as the only leader of the Palestinian people had passed.

You have left the earth but you have not left our hearts, this man yelled from the main square in Ramallah.

Palestinians took to the streets. "With our souls and our blood we sacrifice to you," they chanted. The slogan reserved for martyrs to the Palestinian cause.

Children dressed as militants marched with those from the Al Aqsa Martyrs Brigade. They brought a promise to abide by the decisions of the Palestinian Authority.

Thick black smoke from burning tires hung over Ramallah.

Because of the Israeli occupation when you are sad you burn tires, this boy said.

On this day, Arafat's failings were forgotten.

UNIDENTIFIED MALE: I think he was one -- one of the greatest men in the world.

VAUSE: But there's also anxiety. What will the world be like without Arafat? A promising sign the speaker of the Palestinian parliament was sworn in as interim leader for 60 days. For now at least an orderly transfer of a power but politics and election seem a distant thought. For now, Palestinians are preparing to lay Yasser Arafat to rest in his West Bank compound. By nightfall more than a thousand mourners crammed the streets outside the main gate. And many cannot imagine life without the man who often seemed larger than life.

UNIDENTIFIED MALE: I don't think it's real. Maybe we're waiting for a miracle.

(END VIDEOTAPE)

VAUSE: And, Wolf, those preparations continue at this hour. Just a few hours really now before Arafat's body is flown from Cairo to the West Bank compound here in Ramallah. If we look closer at the compound, the compound where Yasser Arafat was kept under virtual house arrest for almost three years. The lit area in the center of the compound is where Arafat will be laid to rest in what they call a movable monument. Movable because the Palestinian Authority hopes that one day they will eventually be able to lay Arafat to rest permanently, bury him in east Jerusalem in the Al Aqsa Mosque which was his wish, part of his will.

But in fact, if Yasser Arafat cannot go to Al Aqsa Mosque, at least for now, but at least part of the Al Aqsa Mosque will come to him. A senior Islamic cleric from Jerusalem will bring soil from the Al Aqsa Mosque and spread it around the compound.

Right now, mainly workmen in the compound. The mourners have left for the evening. We are told that it will be mostly VIPs here tomorrow. Following that though, Palestinians will be given three days to arrive at this compound to pay their respects to the Palestinian leader -- Wolf.

BLITZER: John Vause reporting for us from Ramallah. Thank you very much. We'll have much more coming up on Yasser Arafat's legacy. But there's another important story we're following.

U.S. military officials in Iraq say the battle of Falluja is in a new stage of fierce house to house fighting. They say it has come at a very high cost. Since the start of the offensive on Monday at least 18 American troops have been killed, 178 have been wounded. Fighting along the side of the Americans are Iraqi soldiers. So far five Iraqi troops killed and 34 Iraqis have been wounded. As far as the insurgents are concerned, a rough estimate puts the number of insurgents killed at more than 500. But insurgents are also on the attack in other cities throughout Iraq. CNN's Karl Penhaul has more now on the fighting and a surprise discovery.

(BEGIN VIDEOTAPE)

KARL PENHAUL, CNN CORRESPONDENT (voice-over): With hand signs, this man explains how he was blindfold and chained by the wrists and ankles. Held hostage in an insurgent slaughter house in Falluja, according to U.S. marines. Now, he's free from his shackles and under the watchful eye of his rescuers, he's getting hospital treatment for cuts and bruises.

UNIDENTIFIED MALE: I never thought I would be free again. I thought I was going to die. Today, early this morning, I heard American voices. And I asked myself, what is going on? American voices, and they started shouting and shouting. And they broke down the door and they rescued me.

PENHAUL: Iraqi and U.S. marine commanders said they found other houses where rebels imprisoned hostages.

UNIDENTIFIED MALE: We have found hostage slaughterhouses in Falluja that were used by these people and the black clothing that they wear to identify themselves.

PENHAUL: It's not clear whether any of the foreign kidnap victims were beheaded in such slaughterhouses. Coalition forces say they now control about three quarters of the rebel stronghold. Marines are still battling pockets of resistance, street by street and house by house. Elsewhere across the city, marines destroyed weapons caches like this haul of anti-tank blinds. Overall, U.S. commanders say they've faced lighter resistance than originally anticipated. But this pool of smoke over the Baghdad skyline is ample evidence the insurgents still pose a huge threat elsewhere in Iraq. Survivors of this massive suicide car bomb, a drag to safety. The dead lie charred in blazing vehicles or in the rubble of buildings.

UNIDENTIFIED MALE: This explosion was done by terrorists. These terrorists are against the country and against Iraq. They are against peace and they don't want it. This is murder.

PENHAUL: In Mosul these resistance gunmen took to the streets in solidarity with their comrades in Falluja. They torched at least three police stations in Mosul overnight and fought gun battles with police, authorities said.

UNIDENTIFIED MALE (through translator): We are terrorists to terrorize the enemy of God, to terrorize the Iraqi national guards in Falluja who are fighting our brothers.

PENHAUL: Since Monday, the day the Falluja offensive began, insurgents have struck in Baghdad, Balad, Baquba, Karbala and Mosul. Falluja may have almost fallen but Iraq's anti-coalition rebellion has not lost its deadly punch.

Karl Penhaul, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: CNN's Jane Arraf is with the U.S. Army. She's embedded with American troops in Falluja. She is joining us now live on the phone. What's the latest from your vantage point -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Wolf, the latest is that U.S. tanks and troops -- I don't know if you can hear that, explosions behind me, have moved into the south of Falluja for the first time. This is Task Force 22 of the 1st Infantry Division. And they are clearing the way through these parts for the Marines to take over parts of the city that they haven't been in before.

Now, as we came through here, they made a breach point with suppressing (ph) fire that included wired-guided missiles as well as tank fire, huge explosions lighting up the sky. Some of the houses set on fire were still burning.

We have seen very few -- in fact, we have seen no civilians, Wolf. There was an -- Iraqi forces have been scheduled to go and find what they believed would be pockets of civilians still in the area who either refused or were unable to leave. It's not clear whether they found any -- Wolf.

BLITZER: Jane, any idea, anybody saying over there how much longer this is expected to continue?

ARRAF: They won't say, but we spoke with one of the Marine generals earlier today who told us he believes that the Marine effort was ahead of schedule, actually. Still, this is -- given the fighting that is going on and even if there is sporadic resistance, it is still out there, almost every block that we went through.

The industrial section was wired and either had land mines or explosive devices. Insurgents still shooting from rooftops from buildings. This will take quite a while -- Wolf.

BLITZER: Jane Arraf reporting for us. Just do recap, 18 American troops at least have already been killed. More than 170 American troops have been wounded. We'll continue to watch the story. More coming up later this hour.

To our viewers your chance to weigh in on the story. Our "Web Question of the Day" is this: How will having new Palestinian leadership affect the prospects for peace in the Middle East? Increase, decrease, or will there be no change? You can vote right now, go to cnn.com/wolf. We'll have the results for you later in this broadcast. After Yasser Arafat, what now for the Palestinians and for the Israelis?

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI FINANCE MINISTER: It may be an opportunity for the tragedy to be replaced by hope. The tragedy was that Arafat who had the power and prestige to move his people to peace instead moved them and us into a terrible war of terror.

(END VIDEO CLIP)

BLITZER: My interview with the former Israeli prime minister, Benjamin Netanyahu, that's coming up.

An apparent kidnapping in front of horrified witnesses and a surveillance camera. Will the videotape lead police to a victim?

Plus, a network movie special tonight, but why some stations around the country are now deciding not to air "Saving Private Ryan." We'll tell you. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM 2002)

YASSER ARAFAT, PRESIDENT, PALESTINIAN AUTHORITY: When I was a small boy I used to play side by side -- I was living with my uncle in Jerusalem (UNINTELLIGIBLE) area. And I used to go as a small boy to play with the Jews in the Jewish quarter, and they used to come to play with me in my area. You forget this? I tend to forget. I was a small boy, but it's still in my mind. Historically we were living together. We never -- you know now that now what we call them, Jews? You know what we call them? Our cousins. Still it is a popular -- pronounce. We never say Jews. We say, he is one of our cousins because spiritually we are cousins.

(END VIDEO CLIP)

BLITZER: That was from my interview with Yasser Arafat at his Ramallah headquarters, the Muqata, in May of 2003. It's there at the Muqata he will be buried tomorrow. May of 2002, that is.

Earlier today I spoke with one of his long-time critics, the former Israeli prime minister and the current finance minister, Benjamin Netanyahu. He joined me from Jerusalem.

(BEGIN VIDEOTAPE)

Mr. Minister, welcome back to CNN. Thanks very much for joining us.

What happens now that Yasser Arafat is dead?

NETANYAHU: It may be an opportunity for a tragedy to be replaced by hope. The tragedy was that Arafat, who had the power and prestige to move his people to peace, instead moved them and us into a terrible war of terror that cost thousands of lives, Israelis and Palestinians alike. This is the man who also pioneered international terrorism, the art of hijacking planes, ships, kidnapping and seizing of hostages, and you name it, which gave birth, of course, to other terrorist groups who emulated him, including al Qaeda.

So his demise opens an opportunity that wasn't available when he was there for more moderate leadership to emerge. Will it emerge? That really remains to be scene. There is a toxified society that has to be detoxified. And I think President Bush had it exactly right when he said that the test of this leadership would be that it follows more civil norms, that it fights terrorism, and fights corruption, it fights the terrible incitement against Israel. And If such a leadership emerges, I assure you, that everybody in Israel will embrace them and will actually engage in the enthusiasm in a political process for peace.

On the other hand, you could have here a battle of succession of militant gangs and great upheaval, and it's too early to say. I think we have to take a look.

But at least we're discussing this possibility, and we couldn't do so as long as Arafat ruled the Palestinians, because he simply made peace impossible.

BLITZER: There was a moment in the '90s when you were prime minister. You met with Yasser Arafat, Bill Clinton, the president of the United States put together the Wye negotiations, plantation negotiations. You were at the White House. We're showing our viewers some pictures of that right now. There was a moment where you were willing to negotiate with Yasser Arafat but it didn't work out, obviously, the way everyone had hoped. What happened?

NETANYAHU: Well, I inherited the Oslo Agreements which essentially gave Arafat a good chunk of land right next to our major cities, gave him a small army, gave him international access to the White House and to respectability, even gave him a Nobel Prize. The deal was that he was supposed to in exchange fight terrorism and prepare his people for peace. He did the exact opposite. And I as I inherited the Oslo Accords I could that see he wasn't doing anything. So at Wye and previously in the Hebron agreement I put milestones of what he has to do. He has to do certain things for us to do certain things. And we started moving that way very slowly.

I must say that the terror stopped when he was forced to cough up real things, substantial -- substantive things. I think that was the only way to proceed with him but I had no illusions that this could be sustainable because he never -- I could never really get from him that change of mind that says, this is not a tactical ploy. I'm not getting these concessions for Israel in order to set up a state next to Israel. I'm really going to set up a state instead of Israel. I think this was what differentiated him from the late Egyptian president Anwar Sadat who said peace is peace. No more war, no more bloodshed. He meant it. We have peace with Egypt. The same thing with the late King Hussein of Jordan. Arafat didn't mean it. That's the whole problem. BLITZER: What about the new Palestinian leadership, the interim leadership, if you will. Mahmoud Abbas, Ahmed Qorei. These leaders who now will now take over at least for the time being. Are these Palestinians with whom the Israeli government, your government can negotiate?

NETANYAHU: Well, I'm not going to speak of any particular person, personalities even though obviously I met both gentlemen, and spent a lot of time with them. I think, again, the president -- President Bush put forward a very clear criteria. I think the first one is fighting terror. You can't have peace and terror. If there's one thing we learned with this terrible decade with Arafat, is that you can't have terror and peace co-existing. The test of a peacemaker is that he fights terror. He may not succeed all the time but he has to make an effort all the time. A real effort.

In the case of Arafat he thought he could have it both ways, and of course, you can't and nor can peace. So the test of anyone coming to leadership right now, a leadership position, is to make that fateful choice between peace and terror. We can only hope in Israel -- I think the entire country right now is praying, perhaps the entire world is praying that a new and responsible leadership emerges that will do what is required of a serious leadership. Fight terror, embrace peace.

(END VIDEOTAPE)

BLITZER: The Israeli finance minister, the former prime minister Benjamin Netanyahu speaking with me earlier today from Jerusalem. Coming up later this hour, more, also of my interview with Yasser Arafat. The interview that was conducted almost two years ago in Ramallah at his headquarters.

Up next, though, on the front lines in Falluja.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Watch out!

(END VIDEO CLIP)

BLITZER: Urban combat up close. It's not pretty. What are U.S. force facing right now?

Also this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Have your paycheck stopped the day your husband is killed and then asked to give back what they ever paid you because your husband died. It can be traumatic.

(END VIDEO CLIP)

BLITZER: War widows and war widowers facing very harsh economic realities. Police scour surveillance tape looking for clues to an apparent kidnapping. The latest on the investigation, all that coming up.

(COMMERCIAL BREAK)

BLITZER: It's Veterans Day and a particular poignant one with U.S. troops on active duty in Afghanistan and Iraq. Traditional observances here at home including a wreath laying ceremony at the World War II memorial in Washington, the first there since the site opened earlier this year. There were also parades including this one in Jacksonville, Florida, among the country's largest according to the city. This year's theme, "Heroes Then and Now." And Houston was one of several Texas cities honoring veterans with a parade. The event is called "Houston Salutes American Heroes." This was its sixth year.

President Bush marked the day with a traditional wreath laying ceremony at the Tomb of the Unknowns at Arlington National Cemetery. In his speech he offered the country's respect and gratitude not only to the millions of veterans living and dead but to those of the future, as well.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Some of tomorrow's veterans are in combat in Iraq at this hour. They have a clear mission: to defeat the terrorists and aid the rise of a free government that can defend itself. They are performing that mission with skill and with honor. They are making us proud. They are winning.

(END VIDEO CLIP)

BLITZER: Families of American forces killed in Iraq are having to deal with terrible emotional pain. But their ordeal doesn't stop there. Joining us now with more on this on this Veteran's Day CNN's Thomas Roberts -- Thomas.

THOMAS ROBERTS, CNN CORRESPONDENT: Hi, Wolf. Good afternoon. You know, losing a loved one to war is devastating for military families and it hits especially hard for them, financially.

(BEGIN VIDEOTAPE)

(voice-over): Chelle Pokorney is 33, the mother of a 4-year-old daughter and a widow with a lot on her mind.

CHELLE POKORNEY, MILITARY WIDOW: I often ask, will I die of a broken heart because some days I feel like I could because I miss him.

ROBERTS: Before her husband, Marine Lieutenant Fred Pokorney was killed in action in Iraq, money was tight. Now...

POKORNEY: It's been a rollercoaster. To lose your breadwinner every day seems to be a struggle and to know which way to turn.

ROBERTS: Military family death benefits include a one-time payout of $12,000. Monthly, surviving spouses receive $967. And each dependent child receives $241. If a spouse remarries benefits cease. Chelle and hundreds of other families are also being helped privately. One such financial guardian angel the Intrepid Fallen Heroes Fund.

BILL WHITE, INTREPID FALLEN HEROES FUND: We don't consider ourselves a charitable organization. The military isn't charity. It's our duty and it's what we owe these families nothing less than our gratitude and support.

ROBERTS: Without strings, a military family receives $11,000 and each child receives $5,000. To date the fund has given out $8 million.

POKORNEY: I cannot provide the life for her that Fred and I were going to provide, no matter how hard I work. It's going to be less than. Even with what I was given, the benefits that we're entitled to, it's going to be a different lifestyle for us.

(END VIDEOTAPE)

ROBERTS: Most military families pay for optional life insurance. It's a benefit of $250,000. But what we learned researching in this report is that as many as 10 percent of the enlisted, that is, the 19- to-24-year-olds, they opt out of that extra coverage, Wolf, and it leaves families pretty much on hard time when it comes to finances.

BLITZER: A pretty sad story, especially on this Veterans Day.

Thomas Roberts, thanks very much.

ROBERTS: You're welcome.

BLITZER: You have heard about the deadly urban combat in Iraq. Just ahead, we're going to show you something different, a vivid close-up look at the actual fighting in Falluja.

And will the death of Yasser Arafat increase chances for a Middle East peace settlement? We'll tell you what the Bush administration is saying.

And why your local television station may not be showing you "Saving Private Ryan" tonight. We'll explain what is going on. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

More now on our top story, the death of Yasser Arafat. The Bush administration saw Arafat as corrupt and incorrigible and it kept its distance. Will Arafat's death now open up new opportunities for peacemaking?

For that, let's turn to our State Department correspondent Andrea Koppel -- Andrea. ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: Wolf, the answer is that it certainly could, but a lot of that depends on, among other things, who the Palestinian people choose as their new leaders and how the United States and Israel respond to those choices.

(BEGIN VIDEOTAPE)

KOPPEL (voice-over): From Europe to the Middle East, a king, presidents and foreign ministers all announce plans to attend Yasser Arafat's funeral, but President Bush won't be traveling to Cairo. Neither will his secretary of state, the last Cabinet member to meet Arafat in April 2002. Instead, Mr. Bush is sending Assistant Secretary of State William Burns, several ranks below Colin Powell.

GEORGE MITCHELL (D), FORMER U.S. SENATOR: Obviously, it will be disappointing to them. They would have hoped, I think, for a higher- level delegation, but I don't think it's going to have any lasting impact.

KOPPEL: Some experts believe the key will be for President Bush to act quickly to empower Arafat's successors to prevent Hamas or other extremist groups from attacking Israel.

JAMES RUBIN, FORMER STATE DEPARTMENT SPOKESMAN: The problem isn't so much the peace process. The problem is the lack of accountability and real leadership.

KOPPEL: Elections for a new Palestinian Authority president are scheduled to take place in 60 days. Until then, Prime Minister Ahmed Qorei and former Prime Minister Mahmoud Abbas, both familiar faces to the U.S. and Israel, considered moderates, but lacking Arafat's grassroots support and charisma, will be among those sharing day-to- day responsibilities. Some Palestinians are openly calling on the U.S. to help.

SAEB EREKAT, CHIEF PALESTINIAN NEGOTIATOR: Help us with the elections. Help us resume a meaningful peace process.

KOPPEL: U.S. allies have also begun urging the Bush administration to consider appointing a Middle East envoy and to use U.S. influence with Israel to offer confidence-building measures, such as releasing Palestinian prisoners, freeing up Palestinian assets, and easing up on closures in the West Bank and Gaza.

(END VIDEOTAPE)

KOPPEL: Suggestions British Prime Minister Tony Blair expected to raise when, on the same day as Yasser Arafat's burial and funeral, he meets with a newly reelected President Bush here in Washington -- Wolf.

BLITZER: Andrea Koppel at the State Department, thanks very much.

I interviewed Yasser Arafat inside his Ramallah compound in may of 2002. We covered a number of topics, including the future of an independent Palestinian state.

(BEGIN VIDEOTAPE)

BLITZER: I remember as a younger reporter and you were a younger man, I was in the U.N. General Assembly, I think it was 1974, and you spoke of an olive branch.

YASSER ARAFAT, PRESIDENT, PALESTINIAN AUTHORITY: Yes.

BLITZER: Are you closer today to an independent Palestinian state that will live alongside in peace with Israel than you were then?

ARAFAT: Yes. And don't forget, when I left Beirut, and you remember...

BLITZER: I was in Beirut then.

ARAFAT: Yes. When they ask me, where are you going, Arafat, I said to them, to Palestine. And now we are in Palestine. And we hope that we will have this independent state side by side with Israel, Israeli Jewish state.

BLITZER: That's a significant statement you just made.

ARAFAT: No, for me, not to forget, our colleague, our cousins, and in Palestine, we are Jews and we have very good relations with them.

BLITZER: Are you prepared now to promise the United States, the people of Israel, people of Palestine, everybody, that you, Yasser Arafat, the president of the Palestinian Authority, will do everything you possibly can to prevent terrorism?

ARAFAT: No doubt. This is my policy from the beginning. Although, there are some, I don't want to say their names, some international power are supporting this.

BLITZER: Iraq?

ARAFAT: I am not speaking names. I will not mention any names, have supported them.

BLITZER: Iran?

ARAFAT: I am not saying names. I am saying that and their leaders, their main leaders is not here. Their main leaders are outside. And in spite of that, I am following, and this what have been decided in our leadership, in our cabinet, in our executive committee, and have been accepted by all the Palestinians, and have been accepted by the majority of the Israeli people. And I am very happy that is big majority of the Israeli people are with the peace.

BLITZER: They would be ready to make peace if they are convinced you were sincere. Remember when Sadat...

ARAFAT: They know that I am...

BLITZER: Remember when Sadat came to Jerusalem in 1977?

ARAFAT: Yes. But not to forget...

BLITZER: They were convinced, because Sadat was sincere.

ARAFAT: Not to forget, I used to go to the house of my partner...

BLITZER: Rabin.

ARAFAT: I used to go to the house of Prime Minister Barak. I used to go to many places there. You know that.

BLITZER: Shimon Peres.

ARAFAT: With Shimon Peres. And not to forget, there is a permanent contact between us and Israelis, still now, for the peace. The last meeting took place in Paris between our speaker and the speaker of the Knesset (UNINTELLIGIBLE) and they prevented him to continue his mission.

BLITZER: Thank you very much, Mr. President.

ARAFAT: Thank you.

(END VIDEOTAPE)

BLITZER: Yasser Arafat speaking with me two years ago-plus, May 2002 in Ramallah.

Right now, U.S. forces are involved in the largest urban combat offensive since the Vietnam War. It's called the battle for Falluja.

CNN's Brian Todd is here with an up-close look at the reality of urban warfare -- Brian.

BRIAN TODD, CNN CORRESPONDENT: All right, Wolf, we undertook this with the idea to give viewers a real-time sense of how dangerous and chaotic street-by-street combat really is. We went through reams of network pool feeds from Falluja and were able to piece together some dramatic sequences from a soldier's-eye view.

(BEGIN VIDEOTAPE)

TODD (voice-over): A wall is no cover if you are on the wrong side of it. In seconds, everything can change, from taking a defensive position to looking for an enemy who disappeared or the lure he's left behind.

UNIDENTIFIED MALE: Check it for booby traps.

TODD: Don't tell these guys the most dangerous insurgents have left Falluja. Here, every corner, pile of rubble, dark room or rooftop could be the last thing you see. UNIDENTIFIED MALE: Watch out. Watch out. Let me get a shot.

TODD: In one sequence, a cameraman is in the middle of an American unit taking fire in an alleyway. It's a tight cluster of buildings. The Americans at first can't tell if they are being targeted from eye level or above.

UNIDENTIFIED MALE: Where is he?

UNIDENTIFIED MALE: Hey, you got him?

TODD: With the help of a spotter on an adjacent rooftop the Americans think they have got a read on him.

UNIDENTIFIED MALE: Hey, he's on the garage!

UNIDENTIFIED MALE: This one right here?

UNIDENTIFIED MALE: Yes!

UNIDENTIFIED MALE: He's in there!

UNIDENTIFIED MALE: We've got friendlies on the roof!

UNIDENTIFIED MALE: Everybody, (UNINTELLIGIBLE).

TODD: The Americans open up. More confusion.

UNIDENTIFIED MALE: Hey, is that friendlies on the roof?

(CROSSTALK)

UNIDENTIFIED MALE: On the roof!

TODD: Whoever they are looking for escapes the camera's eye in this sequence. The combat team keeps firing from behind walls and backed up against them. Then a break, maybe.

UNIDENTIFIED MALE: Hey, he's wounded in between these two houses. I don't know how far down third squad is.

TODD: They blast into doorways and run in. We don't know if they found their attacker. We know they found weapons. In other quadrants of the city, the fighting is only slightly more distant, weapons stashes found everywhere.

UNIDENTIFIED MALE: I've got one RPG round, two mortar tubes, numerous AK-47 magazines.

TODD: A captain relays his group's immediate orders, but might as well be speaking for all coalition units.

UNIDENTIFIED MALE: This area right here was templated to be an enemy stronghold, this whole industrial area. So we knew we were going to have to clear it building by building, street by street.

TODD: Or inch by inch.

(END VIDEOTAPE)

TODD: What you have just seen is footage from cameramen who are embedded with coalition units in Falluja. Under the rules of embedding, we're not allowed to give you some details that would compromise operational security. That includes the various locations where the video was shot and in some cases the names of those military units.

But, Wolf, every day, we're getting some more dramatic pictures from Falluja. And you get that real sense of -- the cameramen are right there alongside these guys.

BLITZER: It's a scary, scary situation. Brian, thank you very much. It brings home the reality of warfare to our viewers.

You have heard Bill Cosby's controversial comments about young African-Americans. Now the outspoken comedian is responding to his critics. He's speaking to our Paula Zahn.

When ABC shows "Saving Private Ryan" tonight, some local stations will be running other shows instead. We'll tell you why.

And there's new dramatic videotape of an apparent abduction. Why didn't anyone try to stop it?

Stay with us.

(COMMERCIAL BREAK)

BLITZER: A dramatic videotape recorded Sunday and released by police yesterday is raising questions. Who is the woman? Who grabbed her? And why didn't anyone try to help her?

CNN's Thelma Gutierrez has the story.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): At this discount mall in Corona, California, a woman appears to be abducted from this parking lot.

UNIDENTIFIED MALE: This is our victim here.

GUTIERREZ: The chilling scene is caught on tape by security cameras.

UNIDENTIFIED MALE: You can visually see the vehicle pull up behind her.

GUTIERREZ: In the tape, you see a young woman walking in the parking lot with more than a half-dozen shoppers around her. A car pulls up. The woman looks back and begins to run as fast as she can across the parking lot.

UNIDENTIFIED MALE: He catches her right about here, grabs her in a bear hug.

GUTIERREZ: The man throws her over his shoulder and shoves her into the trunk of the car, then speeds away.

SGT. JERRY RODRIGUEZ, CORONA POLICE DEPARTMENT: We do know from one of the store clerks that she was actually screaming for help for somebody to call the police.

GUTIERREZ: But Corona, California, police say none of the shoppers who were nearby either called them or came to her aid. The call to 911 was placed by a mall security guard who witnessed what detectives say appears to be a kidnapping.

(on camera): But that's where investigators say their trail goes cold. They have not identified the young woman or the suspects. And they say they have no reports of a missing person who matches her description.

(voice-over): The woman appears to be in her late teens or early 20s. She has medium build and was last seen wearing jeans, a hooded sweatshirt and a white T-shirt. Police say the suspect vehicle is a newer black two-door hatchback, possibly a Toyota Solara with a spare right front tire.

Thelma Gutierrez, CNN, Los Angeles.

(END VIDEOTAPE)

BLITZER: Saving the airwaves. Coming up next, find out why you may not be able to watch "Saving Private Ryan" to commemorate this Veterans Day. That's coming up.

(COMMERCIAL BREAK)

BLITZER: On this Veterans Day, when American troops are being killed in Iraq, there's controversy over an award-winning film about American soldiers who died for our country in another war. The film is "Saving Private Ryan," the issue, why several ABC affiliates are refusing to air it tonight.

CNN's Susan Lisovicz is joining us with more -- Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Wolf, we don't have a firm fix right now on the number of ABC affiliates that have refused to run the film. An ABC spokeswoman tells me that the situation is fluid and that the network itself doesn't know.

What we do know is this. Two years ago, the Federal Communications Commission said that "Saving Private Ryan" depicted a historical view of World War II and wartime atrocities and that offensive language was not presented in a pandering or titillating manner.

(BEGIN VIDEOTAPE)

LISOVICZ (voice-over): Steven Spielberg himself called "Saving Private Ryan" boot camp for the audience, yet, ABC twice aired the film that many say set a new standard for combat reality. And the Federal Communications Commission itself came to the network's defense afterwards, saying the Academy Award-winning movie was not indecent.

But that was the FCC before the Super Bowl wardrobe malfunction that cost CBS a record $550,000 fine. A number of ABC affiliates say they won't air "Saving Private Ryan" this Veterans Day, because they don't want a backlash from the FCC or groups like the American Family Association.

RANDY SHARP, AMERICAN FAMILY ASSOCIATION: People are energized. We want television to come back to a little bit safer realm for our children, especially during those prime-time viewing hours, when our kids are watching TV in their room.

LISOVICZ: But some observers say the surprise backlash against "Saving Private Ryan" has less to do with the timing of the FCC's decisions and more to do with the results of last week's election, when many voters say moral issues were a top priority.

PORTER BIBB, MEDIA ANALYST: Is this the latest result of exit polls and moral values in the red states? It's hard for anybody to take this seriously.

LISOVICZ: A senior staffer at the FCC tells CNN that the commission acts only in response to complaints and never before a program has aired.

UNIDENTIFIED MALE: Gratuitous raunch, gratuitous violence, gratuitous language, that is what is upsetting the public, not a storyline that might include violence, that might include some language, but it's essential to that story.

(END VIDEOTAPE)

LISOVICZ: An ABC spokeswoman says the network will indemnify any station that runs "Saving Private Ryan" tonight. In nonlegal speak, that means ABC would pay any fines if the FCC were to impose them -- Wolf.

BLITZER: Susan Lisovicz in New York -- thank you, Susan, very much.

The comedian Bill Cosby is standing by controversial comments he made earlier this year. Cosby said young African-Americans should pay less attention to pop culture and take more personal responsibility for their lives. In an interview to be aired tonight, CNN's Paula Zahn asks Cosby to respond to his critics.

(BEGIN VIDEO CLIP)

PAULA ZAHN, CNN ANCHOR: Their accusation is, in talking about the problems of the black community the way you have, you are basically, they say, saying blacks are their own worst enemy. True or false? BILL COSBY, COMEDIAN: Am I saying that? Not all. And I love my people. And I want my people to answer the call of our ancestors and the people who got an education and went to historically black colleges, graduated from medical school, law school, engineering school, in the face of odds. And I'm saying to these people, I don't think you know your history. Somebody has got to teach you.

(END VIDEO CLIP)

BLITZER: You can see more of the interview on tonight's CNN's "PAULA ZAHN NOW." That airs 8:00 p.m. Eastern, 5:00 Pacific -- Paula and Bill Cosby.

We'll have the results of our Web question of the day when we come back.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our Web question of the day.

Remember, we've been asking you this question. Take a look at the question. How will having new Palestinian leadership affect the prospects for peace in the Middle East? Forty-eight percent of you say it will increase the prospects, 15 percent decrease; 37 percent don't believe it will make much of a difference. Remember, this is not -- repeat, not -- a scientific poll.

A reminder, we're on weekdays 5:00 p.m. Eastern. We're also on weekdays noon Eastern. I'll see you back here tomorrow. Thanks very much for joining us.

"LOU DOBBS TONIGHT" starts right now.

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