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CNN Wolf Blitzer Reports

As Casualties Rise, Army Recruitment Down; Authorities Find Tunnel from Mexico to U.S.; Parole Denied for Convicted Rapist Alex Kelly

Aired March 03, 2005 - 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: the little plane that could. How did 60-year-old Steve Fossett fly around the world when he may not have had enough fuel to carry him? We'll ask the other rich guy behind the record, Sir Richard Branson.
Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Under the border, authorities say this high-tech tunnel was used to smuggle drugs. Could such a system also give free passage to terrorists?

Rich rapist: the former fugitive has served eight years for his crimes. What does the parole board say now?

Signing off, stunning revelations as Dan Rather prepares to bid farewell. I'll speak with author Ken Auletta of "The New Yorker."

Finding the net. An all-star helps kids stay safe online. But Shaquille O'Neal really wants to be a sheriff. I'll go one on one with the big guy.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, March 3, 2005.

BLITZER: American forces in Iraq have reached yet another grim milestone. The U.S. military today announced three more troops have been killed. That puts the total of U.S. military deaths at 1,502, most of them coming in combat.

One hundred seventy-two members of other multinational forces have died in Iraq, raising the coalition death toll to 1,674. The Pentagon reports more than 11,000 U.S. troops have been wounded in action.

There are no official figures for Iraqi dead, but non-government estimates are in the tens of thousands.

Meantime, the Pentagon is seeing a drop in another important figure, the number of recruits.

Let's go live to our senior Pentagon correspondent, Jamie McIntyre -- Jamie.

JAMIE MCINTYRE, CNN CORRESPONDENT: Well, Wolf, the two U.S. military services that make up U.S. ground forces in Iraq are both suffering recruiting woes. Both the Army and Marine Corps have missed recruiting goals for February.

In the Army, for the first time in nearly five years, the number of recruits who reported to boot camp was 1,936 short of the Army's goal of just over 7,000. And the Army Reserves missed by 330 their goal of 1,320 Marines.

Now, for the Marines it was the second straight month of recruiting shortfalls. These numbers represents contracts signed by new recruits: 192 short of the 2,900 goal for February, and 84 short of January's 3,270 goal.

Now, the casualty figures you mentioned, 1,502 U.S. troops in Iraq dying, that's a big factor. But Pentagon officials say it's not as much as a reluctance of potential new recruits to go to Iraq, but as grave misgivings by their parents.

(BEGIN VIDEO CLIP)

LAWRENCE DIRITA, PENTAGON SPOKESMAN: There's prominent media coverage of casualties in Iraq. Parents factor those kinds of things in to what they want their children doing, and parents, I think, are still considered in -- for the purposes of recruiting, one of the strongest influencers.

(END VIDEO CLIP)

MCINTYRE: Meanwhile, the number of U.S. troops who died in Iraq in February is down. It's the lowest month. And Pentagon officials say it's because of the changing nature of the insurgency, which is -- is being hurt by the counterinsurgency efforts and is now resorting to cruder, but more powerful bombs that are more targeting Iraqi citizens and Iraqi recruits and not targeting the United States military as much with those roadside bombs.

That's resulting in fewer U.S. military deaths, but a large number of Iraqis continue to be killed in those attacks, such as the one in Hillah. That was the deadliest so far -- Wolf.

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

In our "CNN Security Watch," while U.S. authorities have been watching closely to see what comes over the border from Mexico, a stunning discovery shows they now need to watch what comes under the border.

Our Zain Verjee is joining us now from the CNN Center. She has more -- Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, three tunnels have been discovered in the past 15 months. Two were found by accident. The latest one was found using military experts and radar technology.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): Below ground and below the radar, until now. Border patrol agents have uncovered a 200-yard tunnel collecting a house in East Calexico in the U.S. to a house in Mexicali, Mexico.

Homeland security officials say the tunnel is sophisticated. It's about 20 feet underground and has a cement floor, wood planks on the sides, a ventilation systems, phone cabling, possibly for an intercom system. The tunnel is three feet by five. That's large enough for a person to squeeze through.

Authorities say it's likely the tunnel and ones like it have been used for drug trafficking. Security officials are also not ruling out money or arms being smuggled through.

The Department of Homeland Security says there's no indication terrorists have used the tunnel to enter the U.S., but the possibility of cross-border infiltration has caught the eye of Congress.

REP. SOLOMON ORTIZ (D), TEXAS: The southern border is literally under siege, and there's a real possibility that terrorists, particularly al Qaeda forces, could exploit this series of holes in our law enforcement system along the southern border.

VERJEE: Peter Gadiel, who lost his son on 9/11, says the terrorists responsible for the death of his son, and nearly 3,000 others, took advantage of holes in the system.

PETER GADIEL, 9/11 FAMILIES FOR SECURE AMERICA: Those 19 mass murderers counted on lax scrutiny of their visa applications and overwhelmed inspectors at our ports of entry. Then once here, the terrorists counted on being able to hide in plain sight in an ocean of over 10 million illegal aliens living in the United States.

VERJEE: That's not entirely fair, says Democratic Representative Sheila Jackson Lee.

SHEILA JACKSON LEE (D), TEXAS: Immigration does not equate to terrorism. And I say it again: immigration does not equate to terrorism. I hope in the future weeks and months to come, we'll find common ground to address the concerns of Lou Dobbs.

(END VIDEOTAPE)

VERJEE: And Wolf, about the tunnels, the Department of Homeland Security says no one's been arrested, but the investigation is ongoing.

BLITZER: CNN's Zain Verjee reporting for us. Zain, thank you very much.

And to our viewers, please stay tuned to CNN day and night for the most reliable news about your security. Here at home, a white supremacist now in jail says he had nothing to do with the killing of the husband and mother of federal Judge Joan Lefkow. Matthew Hale is awaiting sentencing for trying to have Lefkow killed.

In a trademark dispute, Lefkow ordered Hale to change the name of his extremist group. Lefkow discovered the bodies of her husband and her mother in the basement of her Chicago home on Monday. Both had been shot in the head.

According to "TIME" magazine, in a statement released by his mother today, Hale said, and I'm quoting now, "I want the perpetrator caught and prosecuted. Only an idiot would think that I would do this."

Lefkow reportedly remains in seclusion under federal armed guard, but yesterday she spoke by telephone with several reporters, including Ana Beatriz Cholo of "The Chicago Tribune." Cholo wrote the obituary of Lefkow's husband.

Earlier today I spoke with her about her conversation with the judge.

(BEGIN VIDEOTAPE)

ANA BEATRIZ CHOLO, "THE CHICAGO TRIBUNE": I told her that I wish I would have known him, because he sounded like such a great person. He really was committed to helping people that were less fortunate, poor people, people with unemployment issues, and he was committed to social justice. And he seemed like a very, very admirable, ethical, loyal man and an attorney.

BLITZER: And they had been -- this was clearly a very loving marriage. How many children did they have?

CHOLO: Michael had a daughter from a previous relationship, but with Joan, they had four daughters -- or they have four daughters.

BLITZER: One of them is getting married this summer, is that right?

CHOLO: Yes. The second oldest daughter is getting married in September, and he already had a suit.

BLITZER: They were clearly planning for the wedding?

CHOLO: Yes. He -- his oldest daughter called me this morning, and we talked for a little bit. She said that he already had his top of the line Brooks Brothers suit, and he was ready to go. He wanted to walk her down the aisle.

(END VIDEOTAPE)

BLITZER: Sad story indeed.

No parole set for the jet-set rapist Alex Kelly. The Connecticut Board of Pardons today denied Kelly's request to be released from prison, saying he'll remain behind bars for at least three more years.

Kelly was charged with raping two teenagers while a high school wrestling star in 1986. Just before his trial was to start, he fled the country for Europe, spending most of eight years at expensive ski resorts, using money sent to him by his parents.

He gave himself up in 1995, and was sentenced to 16 years in prison. Emotions were high when both Kelly and his victims spoke to the parole board.

(BEGIN VIDEOTAPE)

ALEX KELLY, CONVICTED RAPIST: I take full responsibility for the things I have done. I have caused a lot of pain to a lot of people, and I am sorry for that.

While I have not been subjected to anything I do not deserve, I do believe it's significant that you understand a little of what I've been through, though. Only by knowing what I've been through and a little bit of what I've lost will you have any idea of how important this is to me.

To be honest with you, it's not my own pain that keeps me up at night anymore. Quite frankly, I'm pretty much numb to it. Excuse me.

UNIDENTIFIED MALE: Take your time.

KELLY: What keeps me up at night these days is the pain that I've caused other people. Ms. Bak and Ms. Tollett (ph), I can't even fathom what I've caused in their lives.

HILARY BUCHANAN, RAPE VICTIM: In one moment, this sexual predator and fugitive of justice changed my entire life forever. His inability to control his impulses, ranging from predation of women to complete disregard of the law. I do not believe that being in prison for less time that he was vacationing in Europe on Mom and Dad's tab is sufficient enough punishment for the brutal, unconscionable crimes he committed against Adrienne and I.

ADRIENNE BAK, RAPE VICTIM: I rejected his first advance. And when I wouldn't submit, he pinned me down and choked me until breathing was so difficult fighting back was impossible. I just prayed that he wouldn't kill me when it was over.

He took away my control, my choices, my rights, and most of all my dignity. It was a brutal attack that would change my life forever. This violent criminal took away my innocence and my adolescence. I will never get them back. And worse, I would spend the rest of my life overcoming all the emotional difficulties that a survivor of sexual assault deals with.

KELLY: So there's no more parole hearings?

UNIDENTIFIED MALE: There's no more parole considerations, and there will be no new hearing dates set.

KELLY: I would like to say something real fast.

UNIDENTIFIED MALE: Mr. Kelly, this hearing is concluded. Thank you.

KELLY: Why did we come here? What -- this is a waste of time.

UNIDENTIFIED MALE: Mr. Kelly, this hearing has been concluded.

KELLY: This was a...

(END VIDEOTAPE)

BLITZER: When we come back, flying around the world in almost three days without making a pit stop, without even getting a good night's sleep. How did a billionaire daredevil make a global record against the odds? I'll ask the backer of this expedition, Sir Richard Branson.

Tasting freedom but still not free. Why Martha Stewart's life at home confinement may seem like a country club until you hear some of the details we're about to share with you. Mary Snow standing by for that.

And Shaquille O'Neal, the sheriff. I'll ask the NBA star about life after basketball, what he plans to do next. Stay with us.

(COMMERCIAL BREAK)

BLITZER: It's official: billionaire adventurer Steve Fossett has become the first person to fly around the world solo, nonstop and without refueling. He touched down in Kansas this afternoon. What a sight it was.

The project was financed by Virgin Atlantic founder and fellow adventurer Sir Richard Branson. I spoke with him just a short while ago.

(BEGIN VIDEOTAPE)

BLITZER: Richard Branson, congratulations. You must be so excited. Well, tell us how excited are you.

RICHARD BRANSON, VIRGIN ATLANTIC FOUNDER: Well, we're obviously all literally over the moon down here. It's a beautiful days in Kansas. It was fantastic watching the Virgin Atlantic Global Flyer coming in through the crowds, and -- and there were thousands of people here to greet it. And it was just a great -- it was a fantastic day. And Steve is -- Steve is obviously elated, as well.

BLITZER: We were scared yesterday. There was supposedly a fuel shortage that could endanger the whole operation. How real was that scare?

BRANSON: The craft is an experimental craft. It's never -- you know, it's never flown on a long flight before. It's been built especially to go around the world, and it couldn't be tested -- it couldn't be tested with a full load of fuel on board.

And so early on in the flight, he had navigational problems, and he lost about just under 2.5 tons of fuel, almost definitely through the fence. Fortunately, because he had lost it early on, he was actually carrying 2.5 tons of weight less.

And so we took him in stages, and as the stages went on, we found that the plane that we built or that Scaled Electrics (sic) had built, was so good that it was -- it was actually traveling on less fuel per gallon than -- than a normal car would be using.

BLITZER: We saw that tiny space where he sat for more than 60 hours. Is this safe for a 60-year-old man to be in a stationary position like that, given all the fear of blood clots nowadays?

BRANSON: I think there's a lot of things that Steve does that are not particularly safe. I mean, when you think that, you know, he's flown around the world in a balloon.

(END VIDEOTAPE)

BLITZER: Steve Fossett, congratulations. Congratulations to Sir Richard Branson, as well. Job well done.

From Camp Cupcake to a sprawling estate where he can bake all the cupcakes she wants. On the eve of Martha Stewart's prison release, we have new details of her home confinement, including some of her new neighbors.

Fearless family, brave actions to retrieve the body of a family member killed in last week's Beirut bombing.

And later, when the limelight fades: new revelations about CBS News anchorman Dan Rather as he prepares to sign off.

(COMMERCIAL BREAK)

BLITZER: Five months in prison is almost up for Martha Stewart. She's set to walk out of a federal prison in West Virginia tomorrow, but she won't be scot-free just yet.

CNN's Mary Snow is in New York. She's following this story. She's joining us live with details -- Mary.

MARY SNOW, CNN CORRESPONDENT: Wolf, Martha Stewart could get out of prison as early as 12:01 a.m. tonight. Now, under probation rules, she'll have 72 hours to contact her probation officer and begin five months of home confinement.

And while there are strict limits on her movements, she won't exactly be slumming it.

(BEGIN VIDEOTAPE)

SNOW (voice-over): The Bedford, New York, estate where Martha Stewart will be staying is bigger than the 95-acre prison grounds at Alderson where she's been held for the past five months.

She's been sharing close quarters with inmates, most of whom are there on drug convictions. Now she's going home to her neighbors like Ralph Lauren, billionaire George Soros and Glenn Close.

Adding Martha Stewart back into the mix in Westchester County doesn't seem to be fazing residents used to fame.

CHERYL FISHER, KATONAH RESIDENT: We expect their privacy. I mean, the Clintons live in Chappaqua, so we're -- I don't think anyone is going to be too star-struck to see her walking down the street or shopping in any of these shops that we go to every today.

SNOW: But Stewart isn't allowed to roam free. This gourmet grocery store said to be one of her favorites is one place she could go, since grocery shopping is on the approved list under probation rules.

She's allowed to leave her home for 48 hours a week, to go to work, attend church services, medical appointments and grocery shopping. There will be one day a week of lockdown where she can't leave her home.

When she does go anywhere, it first must be approved by her probation officer. He will be making unscheduled trips to her home and work.

Stewart must wear an electronic ankle bracelet like this one, that cannot be taken off for the next five months. That monitor will let her parole officer know when she enters and leaves her house.

Probation officers who have had to monitor high-profile people like Martha Stewart say home confinement could prove challenging, imposing limits on her marathon work hours.

LISA KUCA, FORMER PROBATION OFFICER: It's not a piece of cake. It's very frustrating. It is not as easy as it's perceived from the common public. And I do think she will have interesting challenges as will the probation officer supervising her with the employment situation.

SNOW: Stewart won't have to be alone. She can have visitors to her home as long as they haven't been convicted of a crime.

(END VIDEOTAPE)

SNOW: Now, in August, when she completes home confinement, she'll still have 19 months of supervised release. And that means that her probation officer will still check up on her. And if she does travel outside the immediate areas of her work or home, she still has to get permission first -- Wolf.

BLITZER: All right. Mary Snow, she'll be watching this story for us all day tomorrow as well. Mary, thank you very much.

Also in our justice report, the sexual assault case that gripped the nation has abruptly come to an end. Professional basketball star Kobe Bryant and the woman who accused him of rape almost two years ago have now settled her civil lawsuit out of court. Terms were not released.

The accuser was a 19-year-old clerk at a Colorado resort hotel when she told police Bryant assaulted her in 2003. Bryant admitted having sex with her, but insisted it was consensual.

He's wanted dead or alive but rarely mentioned by name nowadays, so why was Osama bin Laden such a hot topic today? We'll hear what President Bush had to say about the al Qaeda leader.

Dan Rather, getting ready to step down next week. I'll talk with author Ken Auletta, who's written about the controversial CBS anchor in "The New Yorker" magazine.

And laying down the law? Could Shaquille O'Neal one day be a sheriff? My interview with the pro basketball giant, that's coming up.

(COMMERCIAL BREAK)

ANNOUNCER: From our studios in Washington, once again, Wolf Blitzer.

BLITZER: Welcome back.

A rare mention of Osama bin Laden by President Bush today, and a confirmation that the al Qaeda leader has contacted the most wanted terrorist in Iraq, Abu Musab al-Zarqawi.

We'll get to that in a moment. First, though, a quick check of some other stories now in the news.

The sister of the accuser in the Michael Jackson molestation trial was on the witness stand earlier today. She testified that during the family's first visit to Jackson's Neverland Ranch in 2000, her brother brought up the subject of being allowed to sleep in Jackson's bed.

What's being called one of the biggest criminal trials in French history got under way today. Sixty-six men and women are accused of taking part in a child prostitution ring. Police say some parents raped their own children or offered them to others in exchange for food or small amounts of money.

He doesn't mention him much anymore, but President Bush today brought up the name of his No. 1 enemy, Osama bin Laden. To find out why, let's go to our White House correspondent, Dana Bash -- Dana.

DANA BASH, CNN CORRESPONDENT: Hi, Wolf.

And what was striking about the fact that the president talked about Osama bin Laden, which as you said, he rarely does, was the fact that he talked actually about the fact that the search for him, the unsuccessful three and a half year hunt for him. And he did so in a specific context. Let's take a listen.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're on a constant hunt for bin Laden. We're keeping the pressure on him, keeping him in hiding. And, today, Zarqawi understands the coalition and Iraqi troops are on a constant hunt for him as well.

(END VIDEO CLIP)

BASH: Now, White House officials say that the reason Mr. Bush talked about bin Laden was essentially because of recent intelligence that he's gotten about an intercept from bin Laden to Abu Musab al- Zarqawi, vowing to strike the U.S. again and also because of the forum.

There, you see he was at a swearing-in ceremony for his new homeland security secretary, Michael Chertoff. Later in the day, Mr. Bush visited the CIA. And he was asked about that rare mention of bin Laden and whether or not it means that the U.S. is actually closer to finding him. And in his response, he reverted to the way he had described bin Laden many, many times in the past, which is the fact is that you shouldn't focus on not finding him, but put in a broader context, that other top al Qaeda figures have been caught.

(BEGIN VIDEO CLIP)

BUSH: If al Qaeda was of course structured like corporate America, you would have a chairman of the board still in office, but many of the key operators would no longer be around.

(END VIDEO CLIP)

BASH: Now, the president did not directly answer whether the U.S. is close to finding bin Laden, but he did say that they're not resting on their laurels.

Now, officials here at the White House and outside who are familiar with intelligence say they don't think that this was prompted by any new information that they are actually closer to Osama bin Laden. It's simply that the president has a new homeland security secretary, was focusing on the war on terrorism, and, of course, Osama bin Laden is the U.S.' top priority when it comes to that.

BLITZER: Dana Bash at the White House -- thank you, Dana, very much.

Meanwhile, Saudi Arabia today told Syria to start withdrawing its approximately 15,000 troops, intelligence forces from Lebanon immediately. Saudi officials say the ultimatum came during talks in Riyadh between Crown Prince Abdullah and visiting Syrian President Bashar al-Assad. The Saudi call echoes similar demands from the United States and other nations following last month's bombing in Beirut which killed the former Lebanese Prime Minister Rafik Hariri. The Saudis are said to be especially angry because Hariri also held Saudi citizenship. It was a massive blast that killed a former prime minister, toppled Lebanon's government and may yet drive Syrian troops out of the country, but amid these earth-shaking events, the shocking story of a family's fight to find a loved one last in the rubble.

Our Beirut bureau chief, Brent Sadler, reports.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): Seething discontent on the streets of Beirut, supporting this heartbroken Sunni Muslim family, burying bomb victim Abdul Hamid Kaliani (ph). He was killed in the blast that targeted Lebanon's former prime minister, Rafik Hariri more than two weeks ago.

Abdul Hamid's (ph) body officially missing in a scandal that has shocked this nation. His body was lying beneath rubble for 17 days until his distraught family took the law into their own hands, forcing their way through a security cordon, searching the bomb site themselves.

Minutes later, screams, followed by floods of tears and naked anger. The decomposed remains found at last. Inconsolable relatives lash out at the authorities. What kind of negligence is this, wails the daughter. Mourners show contempt for official explanations that the site was sealed off to preserve evidence, making it difficult to find the body. A poor excuse, claims the family and many of those who walked to the burial site.

(on camera): The broad-based political opposition is calling for the immediate resignations of Lebanon's top security and intelligence chiefs. A demand echoed here at the funeral of Abdul Hamid Kaliani (ph).

(voice-over): A passerby in the devastating Hariri bomb attack finally laid to rest.

Brent Sadler, CNN, Beirut.

(END VIDEOTAPE)

BLITZER: Let's take a quick look now at some other stories making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): ... alleged leader of a group linked to al Qaeda to 2 1/2 years in prison for the Bali nightclub bombings three years ago. But the court cleared Abu Bakar Bashir of involvement in the bombing of the Marriott Hotel in Jakarta in 2003.

Pearl Murder case. Pakistani police are questioning a key suspect in the kidnapping and murder of "Wall Street Journal" reporter Daniel Pearl three years ago. Mohammed Sohail was arrested yesterday in Karachi. Victory for women. Afghanistan has its first-ever woman provincial governor. Observers say it's a key step toward reviving women's rights since the fall of the hard-line Taliban government in 2002.

Pope's health. Pope John Paul II might be released from a Rome hospital in time for Easter. That's the word from the Vatican, which also says the pope is progressively improving from throat surgery and improving his breathing as well.

And that's our look around the world.

(END VIDEOTAPE)

BLITZER: Anchor away. As Dan Rather gets ready to sign of, we'll get surprising revelations from media critic Ken Auletta of "The New Yorker."

Shaquille O'Neal for sheriff? The all-time all-star tells me what he wants to do after life in the NBA. All that coming up.

(COMMERCIAL BREAK)

BLITZER: Dan Rather steps down from the "Cbs Evening News" anchor desk next Wednesday. His long career in the limelight ends amid scandal, as well as praise.

Author Ken Auletta has written an article about Rather in the new issue of the "New Yorker" magazine. I spoke with him today.

(BEGIN VIDEOTAPE)

BLITZER: Ken Auletta, you paint a powerful picture in this article, but a very depressed Dan Rather. The Dan Rather you saw simply doesn't seem to be the Dan Rather all of us have known all these years.

KEN AULETTA, "THE NEW YORKER": Well, the luxury of time, when you have time as a journalist to spend it with a source and with the people around them for two, three months and you have the length to write, as "The New Yorker" gives you, hopefully, you can penetrate below the surface.

And I think Dan Rather is, at age 73, in some ways depressed, because he loves what he does. And he defines his life by reporting, which he loves to do. And, suddenly, he's going to step down next weeks as anchor for CBS News and then worries about, will he have a place at CBS? Even though they've promised him a place on CBS' "60 Minutes Wednesday," it's not at all certain that "60 Minutes Wednesday" will be renewed next season.

So, Dan Rather looks at the future and worries about it and worries about whether he'll have work. And he also worries about his reputation. He spent a distinguished career as a reporter. He has a black mark on September 8 on CBS, when he made a beautiful mistake, and I mean beautiful in the La Guardia sense of a beaut. And he worries that that will be the first paragraph of his obit. And he doesn't want that to happen, and it shouldn't happen.

BLITZER: There were some quotes in there. You interviewed a lot of his colleagues.

Let me read a couple folks them. Mike Wallace: "Rather is a superb reporter and dead honest. But he's not as easy to watch as Jennings or Brokaw. He's uptight and occasionally contrived."

Walter Cronkite said: "It seemed that Rather was playing a role of newsman, that he was conscious of this, whereas the other two appeared to be more the third-party reporter."

Were you surprised at some of these nasty comments by some of his colleagues?

AULETTA: Well, I was surprised that -- Rather, you know, excites some opposition, but I wasn't surprised by something else. They were all saying something that a lot of people said to me about Dan Rather, which is that, as good a reporter as he is, as an anchor, when he reads from a teleprompter, he is stiff and he is not camera-friendly.

And they were just saying -- they were just being honest and saying it on the record what a lot of other people were saying on a not-by-attribution basis. I'll tell you what I was surprised about. I was surprised that that made the front page of the tabloids in New York, those quotes.

This is a 12,000-word article. And to single out those things about a guy's life I know depressed him. And I understand why it would.

BLITZER: I got the impression reading the article -- you spent a day with him while he was working at CBS -- that you got the sense -- at least I came away with the impression that he was putting on a show for you.

AULETTA: Yes, I said that, and I kind of poked fun at it.

But there's a famous story within CBS that there was an AP reporter who covered television by the name of Rothenberg (ph) who once spent a day with Rather probably 15 years ago and it was called the full Rothenberg treatment. Rather pretended to be actually the managing editor, which is his title. But, in fact, the executive producer is the managing editor, because an anchor has got many other responsibilities that he or she fulfills.

And so he was pretending to direct orders, to write scripts, to review scripts, etcetera. And he did a little bit of that. And I invoked for the reader the Rothenberg rule and said at various points he was now approaching a full Rothenberg moment. When the phone rang in the newsroom, he suddenly stabbed, lurched for it and he picked it up and he said, Rather here.

And the person on the other end, he was in Indonesia, a producer, said, who?

(LAUGHTER)

AULETTA: He was just so shocked that Dan Rather had answered the phone. And the truth is, he would not normally have answered the phone.

BLITZER: In the interview at some point, you suggest he was close to tears. What was that about?

AULETTA: Wolf, I just lost your voice. I apologize.

BLITZER: In the interview, you suggest that, at one point, Dan Rather was close to tears at one point. What was that about?

AULETTA: Well, actually, it happened at several points. I interviewed him on three different days, including the full day I spent with him.

And on each of those days, at sometimes surprising moments, talking to him about his fourth-grade teacher Ms. Spencer (ph), talking to him about his mom and dad, talking about covering the war in Vietnam, I would say probably a good 30 or so times, Dan Rather had tears in his eyes, and, by the way, not self-consciously. It wasn't like a man who was going like this and just kind of flicking it, hoping I didn't notice.

He was unashamedly -- had tears in his eyes. And I think what it was about -- at least, what I concluded it was about -- and at one point I asked him, why are you crying? And I think his whole life is flashing before him. And I think it's a mixture of pride and sentiment and probably fear, in the sense of, you're wondering, what's tomorrow going to be like?

BLITZER: There's a full-page picture of Dan Rather in "The New Yorker," the caption underneath, a quote. "A lot of people know Dan and nobody knows him," one of his producers says.

But I have to tell you -- and I'm sure many people have said to you, this is about the most unflattering picture of Dan Rather that I've ever seen. What was the thinking behind using this photo?

AULETTA: Well, you know, the writer is not the photographer. And the photographer actually is a very good photographer.

When I did a profile of Ted Turner several years ago, he took the full-page photograph of Ted Turner, and it was a terrific photo. This is not a terrific photo, in my judgment, and it was not consonant with the complicated view I was portraying of Dan Rather. I thought he looked like a half-Martian figure. And I know the photographer is very good, but it was not my favorite photograph. And I know I've taken some heat about that.

BLITZER: This is a decision that the editors make or the photographer makes, which photo they use, the photographer being Martin Schoeller?

AULETTA: No, Martin Schoeller submits the photograph. He was assigned to take the photograph.

He submits. He comes back with several. The photo editor picks some, and then the editors decide. And that's their prerogative to do that. And, I mean, I looked at the photograph late Thursday afternoon last week as the piece was closing, it was already chosen, and in pages, and I saw a grainier picture and I said, gee, is there something wrong with the eyes?

And they said, no, it's really an interesting photograph. And, listen, this is very personal taste kind of an issue. And I'm sure in good faith, there are people who looked at that and they're very talented people and they liked it. I didn't and don't.

(CROSSTALK)

BLITZER: I'm sure he hated it. The eyes look very weird. The mouth, the teeth look like they're almost metal. But that's a subject for another day.

(CROSSTALK)

AULETTA: Actually, he did not. I have talked to him once. And he did not. His initial reaction was not an objection to the photograph, which surprised me. I thought he would have.

BLITZER: Ken Auletta does good work for "The New Yorker," among other publications. Thanks very much for joining us.

AULETTA: My pleasure, Wolf.

(END VIDEOTAPE)

BLITZER: After the interview, I spoke with Perri Dorset, a spokeswoman for "The New Yorker" magazine. She said that Martin Schoeller, the photographer, is out of the country right now, but has been bombarded with questions about the photo. She noted that he has made his name over the years with these unique and big head shots of famous people, feels that the photo expressed the measure of the Auletta article and that it says a lot about Rather's character. That's what Schoeller's photo, she added -- photos -- she says they often do that.

Keeping kids safe online. Find out what this pro basketball star, not any star, but this one, Shaquille O'Neal, is doing to protect your kids while they're surfing the Internet. My interview with Shaquille, that's coming up next.

(COMMERCIAL BREAK)

BLITZER: We're just getting a statement in from Martha Stewart's company that she will be released from the prison in West Virginia shortly after midnight tonight. She is expected to be at the airport there sometime between 12:30 a.m., 1:30 a.m. CNN will have coverage of that. Martha Stewart is going to be released after midnight tonight. Miami Heat star Shaquille O'Neal says he would like to be packing heat as a sheriff when he's done with the NBA. He's also taking aim at Internet predators as spokesman for a new group to protect children, that group being called Safe Surfin'.

I spoke with Shaquille O'Neal about that.

(BEGIN VIDEOTAPE)

BLITZER: Shaquille O'Neal, congratulations. You're a deputy U.S. Marshal. Tell our viewers how this came about.

SHAQUILLE O'NEAL, MIAMI HEAT: Well, I started police academy about five years ago in Los Angeles. Everyone knows the love I have for the people who defend the streets, the police officers, the people who defend our country, the armed forces, the Army, Navy, Marines. Those guys know that, without them, there would be no me.

I've been named to Internet Crimes Against Children Task Force. And it's my part as a father, as a person, to help keep kids safe on the Internet. And when I was named to the task force, I was also named a deputy U.S. Marshal.

BLITZER: You're really serious about this law enforcement issue. This is not simply a public relations stunt. This is something that motivates you, that drives you.

O'NEAL: I'm very serious.

Ever since I was a youngster, my father always told me to have something to fall back on. And I've had a fabulous NBA career. My NBA career will be over soon, and I want to do something else. I don't want to just sit at an analyst bullpen and talk about what I used to do and talk about guys and criticize guys. I want to do stuff that is going out in the community.

And I think I would be best fit as a sheriff or a chief of police somewhere. So, in doing that, I wanted to do everything the right way. I attended a police academy in Los Angeles. I worked in Los Angeles. I'm now working in Miami Beach. And I'm doing everything the right way. I'm also working on my master's in criminal justice from the University of Phoenix. So, when I'm done playing basketball, I'll walk right over into a chief of police or sheriff's job right away.

BLITZER: So you're really serious? Because everybody knows you make a ton of money. When you retire from the NBA, you're going to go into law enforcement and get a job?

O'NEAL: Yes, I am.

Like I said, my dreams and aspirations have always been to be a chief of police or a sheriff. I admit, as a youngster, I hit the athletic lottery a few times. And I have beautiful children. I have a beautiful wife. But you can't play basketball forever, but I think you can help out in the community forever. BLITZER: Now, you're here in Washington as we speak, because you're here for a specific cause involving the kids and the Internet. Tell our viewers what motivates you on this issue.

O'NEAL: Well, as you know, there's over 70 million kids on the Internet right now.

And there's over -- there's over 400,000 different chat rooms that kids can go to. And I think it's part of my job as a father, as a person, as a law enforcement personnel, to help keep those kids safe. We want to keep the children away from sexual predators and criminals.

BLITZER: So, what are you doing? What can you do about it? What can parents do about it, teachers? What should we be doing?

O'NEAL: I'll tell you, you know, parents need to monitor what their kids do on the Internet. And the kids just need to know the basic tips. Don't talk to strangers. Don't give out your phone numbers. Don't tell people where you are. Don't tell them anything.

BLITZER: All right, let's get back to basketball for a second while I have you. You've been injured a little bit. Are you ready? You're coming back, right?

O'NEAL: Yes. We play against the New Jersey Nets tomorrow, and I'm going to play tomorrow.

BLITZER: How does it feel to be on the injured list, at least briefly?

O'NEAL: You know, Pat Riley and Coach Van Gundy, they told me to take it easy. They didn't want me to try to be a hero and come back too soon. So, I took a couple games off. I got ample rest. And now I'm ready to get back to work.

BLITZER: That awful incident that a lot of our viewers remember in Detroit between Detroit and Indiana, when some of the players went up into the stands, now, as far as I know, that was a total aberration from all the years I've been a huge NBA fan. But give me your perspective.

O'NEAL: I think it was a one-time incident. I think it will never happen again. I think the Commissioner Stern did a great job in handing out the penalties. And we as players, we learn from our mistakes. And we see it all the time and it's something that will probably never, never happen again.

BLITZER: Because the amazing thing about basketball, the NBA, the fans are basically right there on the court, unlike hockey, where they have got walls that separate the fans from the players.

Fans are right there. You don't want to see a situation where you've got to start building a wall around the court.

O'NEAL: Security has never been a problem in an NBA situation. Like I said before, this is a one-time thing. It will probably never happen again.

That's what makes our game so intimate, that the fans are right there. They say certain things. You make a play and you go smack their hands. You get to see a little kid and wink at them or do whatever. And this is a situation that will never happen again.

BLITZER: Are you happy in Miami now? Because all of our viewers know there was tension between you and Kobe Bryant when you both played for L.A.

O'NEAL: There was never really tension between myself and Kobe. We're just bullheaded guys trying to accomplish the same thing. And we did accomplish many of the championships that we wanted to accomplish.

But I'm very happy in Miami. I'm very happy with the law enforcement and what they're doing in protecting our country. I'm very happy with the police officers all over the world.

And I'm very happy with you, Mr. Wolf Blitzer. You are the man.

(LAUGHTER)

BLITZER: Our viewers are going to think I paid you to say that.

O'NEAL: No, of course not. No, of course not. I love your show.

BLITZER: All right.

(LAUGHTER)

BLITZER: Shaquille O'Neal, arguably -- I say arguably because you've got a lot of competition -- the best in the NBA right now, but we shall see as the season continues. Still got a long way to go.

(CROSSTALK)

BLITZER: Always good to have you on the program, Shaquille. Good luck.

O'NEAL: All right. Nice to see you again, Wolf.

BLITZER: Thank you.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: That's it for me. I'll be back tomorrow, 5:00 p.m. Eastern. I'm Wolf Blitzer in Washington.

"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 March 3, 2005 - 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: the little plane that could. How did 60-year-old Steve Fossett fly around the world when he may not have had enough fuel to carry him? We'll ask the other rich guy behind the record, Sir Richard Branson.
Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Under the border, authorities say this high-tech tunnel was used to smuggle drugs. Could such a system also give free passage to terrorists?

Rich rapist: the former fugitive has served eight years for his crimes. What does the parole board say now?

Signing off, stunning revelations as Dan Rather prepares to bid farewell. I'll speak with author Ken Auletta of "The New Yorker."

Finding the net. An all-star helps kids stay safe online. But Shaquille O'Neal really wants to be a sheriff. I'll go one on one with the big guy.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, March 3, 2005.

BLITZER: American forces in Iraq have reached yet another grim milestone. The U.S. military today announced three more troops have been killed. That puts the total of U.S. military deaths at 1,502, most of them coming in combat.

One hundred seventy-two members of other multinational forces have died in Iraq, raising the coalition death toll to 1,674. The Pentagon reports more than 11,000 U.S. troops have been wounded in action.

There are no official figures for Iraqi dead, but non-government estimates are in the tens of thousands.

Meantime, the Pentagon is seeing a drop in another important figure, the number of recruits.

Let's go live to our senior Pentagon correspondent, Jamie McIntyre -- Jamie.

JAMIE MCINTYRE, CNN CORRESPONDENT: Well, Wolf, the two U.S. military services that make up U.S. ground forces in Iraq are both suffering recruiting woes. Both the Army and Marine Corps have missed recruiting goals for February.

In the Army, for the first time in nearly five years, the number of recruits who reported to boot camp was 1,936 short of the Army's goal of just over 7,000. And the Army Reserves missed by 330 their goal of 1,320 Marines.

Now, for the Marines it was the second straight month of recruiting shortfalls. These numbers represents contracts signed by new recruits: 192 short of the 2,900 goal for February, and 84 short of January's 3,270 goal.

Now, the casualty figures you mentioned, 1,502 U.S. troops in Iraq dying, that's a big factor. But Pentagon officials say it's not as much as a reluctance of potential new recruits to go to Iraq, but as grave misgivings by their parents.

(BEGIN VIDEO CLIP)

LAWRENCE DIRITA, PENTAGON SPOKESMAN: There's prominent media coverage of casualties in Iraq. Parents factor those kinds of things in to what they want their children doing, and parents, I think, are still considered in -- for the purposes of recruiting, one of the strongest influencers.

(END VIDEO CLIP)

MCINTYRE: Meanwhile, the number of U.S. troops who died in Iraq in February is down. It's the lowest month. And Pentagon officials say it's because of the changing nature of the insurgency, which is -- is being hurt by the counterinsurgency efforts and is now resorting to cruder, but more powerful bombs that are more targeting Iraqi citizens and Iraqi recruits and not targeting the United States military as much with those roadside bombs.

That's resulting in fewer U.S. military deaths, but a large number of Iraqis continue to be killed in those attacks, such as the one in Hillah. That was the deadliest so far -- Wolf.

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

In our "CNN Security Watch," while U.S. authorities have been watching closely to see what comes over the border from Mexico, a stunning discovery shows they now need to watch what comes under the border.

Our Zain Verjee is joining us now from the CNN Center. She has more -- Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, three tunnels have been discovered in the past 15 months. Two were found by accident. The latest one was found using military experts and radar technology.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): Below ground and below the radar, until now. Border patrol agents have uncovered a 200-yard tunnel collecting a house in East Calexico in the U.S. to a house in Mexicali, Mexico.

Homeland security officials say the tunnel is sophisticated. It's about 20 feet underground and has a cement floor, wood planks on the sides, a ventilation systems, phone cabling, possibly for an intercom system. The tunnel is three feet by five. That's large enough for a person to squeeze through.

Authorities say it's likely the tunnel and ones like it have been used for drug trafficking. Security officials are also not ruling out money or arms being smuggled through.

The Department of Homeland Security says there's no indication terrorists have used the tunnel to enter the U.S., but the possibility of cross-border infiltration has caught the eye of Congress.

REP. SOLOMON ORTIZ (D), TEXAS: The southern border is literally under siege, and there's a real possibility that terrorists, particularly al Qaeda forces, could exploit this series of holes in our law enforcement system along the southern border.

VERJEE: Peter Gadiel, who lost his son on 9/11, says the terrorists responsible for the death of his son, and nearly 3,000 others, took advantage of holes in the system.

PETER GADIEL, 9/11 FAMILIES FOR SECURE AMERICA: Those 19 mass murderers counted on lax scrutiny of their visa applications and overwhelmed inspectors at our ports of entry. Then once here, the terrorists counted on being able to hide in plain sight in an ocean of over 10 million illegal aliens living in the United States.

VERJEE: That's not entirely fair, says Democratic Representative Sheila Jackson Lee.

SHEILA JACKSON LEE (D), TEXAS: Immigration does not equate to terrorism. And I say it again: immigration does not equate to terrorism. I hope in the future weeks and months to come, we'll find common ground to address the concerns of Lou Dobbs.

(END VIDEOTAPE)

VERJEE: And Wolf, about the tunnels, the Department of Homeland Security says no one's been arrested, but the investigation is ongoing.

BLITZER: CNN's Zain Verjee reporting for us. Zain, thank you very much.

And to our viewers, please stay tuned to CNN day and night for the most reliable news about your security. Here at home, a white supremacist now in jail says he had nothing to do with the killing of the husband and mother of federal Judge Joan Lefkow. Matthew Hale is awaiting sentencing for trying to have Lefkow killed.

In a trademark dispute, Lefkow ordered Hale to change the name of his extremist group. Lefkow discovered the bodies of her husband and her mother in the basement of her Chicago home on Monday. Both had been shot in the head.

According to "TIME" magazine, in a statement released by his mother today, Hale said, and I'm quoting now, "I want the perpetrator caught and prosecuted. Only an idiot would think that I would do this."

Lefkow reportedly remains in seclusion under federal armed guard, but yesterday she spoke by telephone with several reporters, including Ana Beatriz Cholo of "The Chicago Tribune." Cholo wrote the obituary of Lefkow's husband.

Earlier today I spoke with her about her conversation with the judge.

(BEGIN VIDEOTAPE)

ANA BEATRIZ CHOLO, "THE CHICAGO TRIBUNE": I told her that I wish I would have known him, because he sounded like such a great person. He really was committed to helping people that were less fortunate, poor people, people with unemployment issues, and he was committed to social justice. And he seemed like a very, very admirable, ethical, loyal man and an attorney.

BLITZER: And they had been -- this was clearly a very loving marriage. How many children did they have?

CHOLO: Michael had a daughter from a previous relationship, but with Joan, they had four daughters -- or they have four daughters.

BLITZER: One of them is getting married this summer, is that right?

CHOLO: Yes. The second oldest daughter is getting married in September, and he already had a suit.

BLITZER: They were clearly planning for the wedding?

CHOLO: Yes. He -- his oldest daughter called me this morning, and we talked for a little bit. She said that he already had his top of the line Brooks Brothers suit, and he was ready to go. He wanted to walk her down the aisle.

(END VIDEOTAPE)

BLITZER: Sad story indeed.

No parole set for the jet-set rapist Alex Kelly. The Connecticut Board of Pardons today denied Kelly's request to be released from prison, saying he'll remain behind bars for at least three more years.

Kelly was charged with raping two teenagers while a high school wrestling star in 1986. Just before his trial was to start, he fled the country for Europe, spending most of eight years at expensive ski resorts, using money sent to him by his parents.

He gave himself up in 1995, and was sentenced to 16 years in prison. Emotions were high when both Kelly and his victims spoke to the parole board.

(BEGIN VIDEOTAPE)

ALEX KELLY, CONVICTED RAPIST: I take full responsibility for the things I have done. I have caused a lot of pain to a lot of people, and I am sorry for that.

While I have not been subjected to anything I do not deserve, I do believe it's significant that you understand a little of what I've been through, though. Only by knowing what I've been through and a little bit of what I've lost will you have any idea of how important this is to me.

To be honest with you, it's not my own pain that keeps me up at night anymore. Quite frankly, I'm pretty much numb to it. Excuse me.

UNIDENTIFIED MALE: Take your time.

KELLY: What keeps me up at night these days is the pain that I've caused other people. Ms. Bak and Ms. Tollett (ph), I can't even fathom what I've caused in their lives.

HILARY BUCHANAN, RAPE VICTIM: In one moment, this sexual predator and fugitive of justice changed my entire life forever. His inability to control his impulses, ranging from predation of women to complete disregard of the law. I do not believe that being in prison for less time that he was vacationing in Europe on Mom and Dad's tab is sufficient enough punishment for the brutal, unconscionable crimes he committed against Adrienne and I.

ADRIENNE BAK, RAPE VICTIM: I rejected his first advance. And when I wouldn't submit, he pinned me down and choked me until breathing was so difficult fighting back was impossible. I just prayed that he wouldn't kill me when it was over.

He took away my control, my choices, my rights, and most of all my dignity. It was a brutal attack that would change my life forever. This violent criminal took away my innocence and my adolescence. I will never get them back. And worse, I would spend the rest of my life overcoming all the emotional difficulties that a survivor of sexual assault deals with.

KELLY: So there's no more parole hearings?

UNIDENTIFIED MALE: There's no more parole considerations, and there will be no new hearing dates set.

KELLY: I would like to say something real fast.

UNIDENTIFIED MALE: Mr. Kelly, this hearing is concluded. Thank you.

KELLY: Why did we come here? What -- this is a waste of time.

UNIDENTIFIED MALE: Mr. Kelly, this hearing has been concluded.

KELLY: This was a...

(END VIDEOTAPE)

BLITZER: When we come back, flying around the world in almost three days without making a pit stop, without even getting a good night's sleep. How did a billionaire daredevil make a global record against the odds? I'll ask the backer of this expedition, Sir Richard Branson.

Tasting freedom but still not free. Why Martha Stewart's life at home confinement may seem like a country club until you hear some of the details we're about to share with you. Mary Snow standing by for that.

And Shaquille O'Neal, the sheriff. I'll ask the NBA star about life after basketball, what he plans to do next. Stay with us.

(COMMERCIAL BREAK)

BLITZER: It's official: billionaire adventurer Steve Fossett has become the first person to fly around the world solo, nonstop and without refueling. He touched down in Kansas this afternoon. What a sight it was.

The project was financed by Virgin Atlantic founder and fellow adventurer Sir Richard Branson. I spoke with him just a short while ago.

(BEGIN VIDEOTAPE)

BLITZER: Richard Branson, congratulations. You must be so excited. Well, tell us how excited are you.

RICHARD BRANSON, VIRGIN ATLANTIC FOUNDER: Well, we're obviously all literally over the moon down here. It's a beautiful days in Kansas. It was fantastic watching the Virgin Atlantic Global Flyer coming in through the crowds, and -- and there were thousands of people here to greet it. And it was just a great -- it was a fantastic day. And Steve is -- Steve is obviously elated, as well.

BLITZER: We were scared yesterday. There was supposedly a fuel shortage that could endanger the whole operation. How real was that scare?

BRANSON: The craft is an experimental craft. It's never -- you know, it's never flown on a long flight before. It's been built especially to go around the world, and it couldn't be tested -- it couldn't be tested with a full load of fuel on board.

And so early on in the flight, he had navigational problems, and he lost about just under 2.5 tons of fuel, almost definitely through the fence. Fortunately, because he had lost it early on, he was actually carrying 2.5 tons of weight less.

And so we took him in stages, and as the stages went on, we found that the plane that we built or that Scaled Electrics (sic) had built, was so good that it was -- it was actually traveling on less fuel per gallon than -- than a normal car would be using.

BLITZER: We saw that tiny space where he sat for more than 60 hours. Is this safe for a 60-year-old man to be in a stationary position like that, given all the fear of blood clots nowadays?

BRANSON: I think there's a lot of things that Steve does that are not particularly safe. I mean, when you think that, you know, he's flown around the world in a balloon.

(END VIDEOTAPE)

BLITZER: Steve Fossett, congratulations. Congratulations to Sir Richard Branson, as well. Job well done.

From Camp Cupcake to a sprawling estate where he can bake all the cupcakes she wants. On the eve of Martha Stewart's prison release, we have new details of her home confinement, including some of her new neighbors.

Fearless family, brave actions to retrieve the body of a family member killed in last week's Beirut bombing.

And later, when the limelight fades: new revelations about CBS News anchorman Dan Rather as he prepares to sign off.

(COMMERCIAL BREAK)

BLITZER: Five months in prison is almost up for Martha Stewart. She's set to walk out of a federal prison in West Virginia tomorrow, but she won't be scot-free just yet.

CNN's Mary Snow is in New York. She's following this story. She's joining us live with details -- Mary.

MARY SNOW, CNN CORRESPONDENT: Wolf, Martha Stewart could get out of prison as early as 12:01 a.m. tonight. Now, under probation rules, she'll have 72 hours to contact her probation officer and begin five months of home confinement.

And while there are strict limits on her movements, she won't exactly be slumming it.

(BEGIN VIDEOTAPE)

SNOW (voice-over): The Bedford, New York, estate where Martha Stewart will be staying is bigger than the 95-acre prison grounds at Alderson where she's been held for the past five months.

She's been sharing close quarters with inmates, most of whom are there on drug convictions. Now she's going home to her neighbors like Ralph Lauren, billionaire George Soros and Glenn Close.

Adding Martha Stewart back into the mix in Westchester County doesn't seem to be fazing residents used to fame.

CHERYL FISHER, KATONAH RESIDENT: We expect their privacy. I mean, the Clintons live in Chappaqua, so we're -- I don't think anyone is going to be too star-struck to see her walking down the street or shopping in any of these shops that we go to every today.

SNOW: But Stewart isn't allowed to roam free. This gourmet grocery store said to be one of her favorites is one place she could go, since grocery shopping is on the approved list under probation rules.

She's allowed to leave her home for 48 hours a week, to go to work, attend church services, medical appointments and grocery shopping. There will be one day a week of lockdown where she can't leave her home.

When she does go anywhere, it first must be approved by her probation officer. He will be making unscheduled trips to her home and work.

Stewart must wear an electronic ankle bracelet like this one, that cannot be taken off for the next five months. That monitor will let her parole officer know when she enters and leaves her house.

Probation officers who have had to monitor high-profile people like Martha Stewart say home confinement could prove challenging, imposing limits on her marathon work hours.

LISA KUCA, FORMER PROBATION OFFICER: It's not a piece of cake. It's very frustrating. It is not as easy as it's perceived from the common public. And I do think she will have interesting challenges as will the probation officer supervising her with the employment situation.

SNOW: Stewart won't have to be alone. She can have visitors to her home as long as they haven't been convicted of a crime.

(END VIDEOTAPE)

SNOW: Now, in August, when she completes home confinement, she'll still have 19 months of supervised release. And that means that her probation officer will still check up on her. And if she does travel outside the immediate areas of her work or home, she still has to get permission first -- Wolf.

BLITZER: All right. Mary Snow, she'll be watching this story for us all day tomorrow as well. Mary, thank you very much.

Also in our justice report, the sexual assault case that gripped the nation has abruptly come to an end. Professional basketball star Kobe Bryant and the woman who accused him of rape almost two years ago have now settled her civil lawsuit out of court. Terms were not released.

The accuser was a 19-year-old clerk at a Colorado resort hotel when she told police Bryant assaulted her in 2003. Bryant admitted having sex with her, but insisted it was consensual.

He's wanted dead or alive but rarely mentioned by name nowadays, so why was Osama bin Laden such a hot topic today? We'll hear what President Bush had to say about the al Qaeda leader.

Dan Rather, getting ready to step down next week. I'll talk with author Ken Auletta, who's written about the controversial CBS anchor in "The New Yorker" magazine.

And laying down the law? Could Shaquille O'Neal one day be a sheriff? My interview with the pro basketball giant, that's coming up.

(COMMERCIAL BREAK)

ANNOUNCER: From our studios in Washington, once again, Wolf Blitzer.

BLITZER: Welcome back.

A rare mention of Osama bin Laden by President Bush today, and a confirmation that the al Qaeda leader has contacted the most wanted terrorist in Iraq, Abu Musab al-Zarqawi.

We'll get to that in a moment. First, though, a quick check of some other stories now in the news.

The sister of the accuser in the Michael Jackson molestation trial was on the witness stand earlier today. She testified that during the family's first visit to Jackson's Neverland Ranch in 2000, her brother brought up the subject of being allowed to sleep in Jackson's bed.

What's being called one of the biggest criminal trials in French history got under way today. Sixty-six men and women are accused of taking part in a child prostitution ring. Police say some parents raped their own children or offered them to others in exchange for food or small amounts of money.

He doesn't mention him much anymore, but President Bush today brought up the name of his No. 1 enemy, Osama bin Laden. To find out why, let's go to our White House correspondent, Dana Bash -- Dana.

DANA BASH, CNN CORRESPONDENT: Hi, Wolf.

And what was striking about the fact that the president talked about Osama bin Laden, which as you said, he rarely does, was the fact that he talked actually about the fact that the search for him, the unsuccessful three and a half year hunt for him. And he did so in a specific context. Let's take a listen.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're on a constant hunt for bin Laden. We're keeping the pressure on him, keeping him in hiding. And, today, Zarqawi understands the coalition and Iraqi troops are on a constant hunt for him as well.

(END VIDEO CLIP)

BASH: Now, White House officials say that the reason Mr. Bush talked about bin Laden was essentially because of recent intelligence that he's gotten about an intercept from bin Laden to Abu Musab al- Zarqawi, vowing to strike the U.S. again and also because of the forum.

There, you see he was at a swearing-in ceremony for his new homeland security secretary, Michael Chertoff. Later in the day, Mr. Bush visited the CIA. And he was asked about that rare mention of bin Laden and whether or not it means that the U.S. is actually closer to finding him. And in his response, he reverted to the way he had described bin Laden many, many times in the past, which is the fact is that you shouldn't focus on not finding him, but put in a broader context, that other top al Qaeda figures have been caught.

(BEGIN VIDEO CLIP)

BUSH: If al Qaeda was of course structured like corporate America, you would have a chairman of the board still in office, but many of the key operators would no longer be around.

(END VIDEO CLIP)

BASH: Now, the president did not directly answer whether the U.S. is close to finding bin Laden, but he did say that they're not resting on their laurels.

Now, officials here at the White House and outside who are familiar with intelligence say they don't think that this was prompted by any new information that they are actually closer to Osama bin Laden. It's simply that the president has a new homeland security secretary, was focusing on the war on terrorism, and, of course, Osama bin Laden is the U.S.' top priority when it comes to that.

BLITZER: Dana Bash at the White House -- thank you, Dana, very much.

Meanwhile, Saudi Arabia today told Syria to start withdrawing its approximately 15,000 troops, intelligence forces from Lebanon immediately. Saudi officials say the ultimatum came during talks in Riyadh between Crown Prince Abdullah and visiting Syrian President Bashar al-Assad. The Saudi call echoes similar demands from the United States and other nations following last month's bombing in Beirut which killed the former Lebanese Prime Minister Rafik Hariri. The Saudis are said to be especially angry because Hariri also held Saudi citizenship. It was a massive blast that killed a former prime minister, toppled Lebanon's government and may yet drive Syrian troops out of the country, but amid these earth-shaking events, the shocking story of a family's fight to find a loved one last in the rubble.

Our Beirut bureau chief, Brent Sadler, reports.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): Seething discontent on the streets of Beirut, supporting this heartbroken Sunni Muslim family, burying bomb victim Abdul Hamid Kaliani (ph). He was killed in the blast that targeted Lebanon's former prime minister, Rafik Hariri more than two weeks ago.

Abdul Hamid's (ph) body officially missing in a scandal that has shocked this nation. His body was lying beneath rubble for 17 days until his distraught family took the law into their own hands, forcing their way through a security cordon, searching the bomb site themselves.

Minutes later, screams, followed by floods of tears and naked anger. The decomposed remains found at last. Inconsolable relatives lash out at the authorities. What kind of negligence is this, wails the daughter. Mourners show contempt for official explanations that the site was sealed off to preserve evidence, making it difficult to find the body. A poor excuse, claims the family and many of those who walked to the burial site.

(on camera): The broad-based political opposition is calling for the immediate resignations of Lebanon's top security and intelligence chiefs. A demand echoed here at the funeral of Abdul Hamid Kaliani (ph).

(voice-over): A passerby in the devastating Hariri bomb attack finally laid to rest.

Brent Sadler, CNN, Beirut.

(END VIDEOTAPE)

BLITZER: Let's take a quick look now at some other stories making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): ... alleged leader of a group linked to al Qaeda to 2 1/2 years in prison for the Bali nightclub bombings three years ago. But the court cleared Abu Bakar Bashir of involvement in the bombing of the Marriott Hotel in Jakarta in 2003.

Pearl Murder case. Pakistani police are questioning a key suspect in the kidnapping and murder of "Wall Street Journal" reporter Daniel Pearl three years ago. Mohammed Sohail was arrested yesterday in Karachi. Victory for women. Afghanistan has its first-ever woman provincial governor. Observers say it's a key step toward reviving women's rights since the fall of the hard-line Taliban government in 2002.

Pope's health. Pope John Paul II might be released from a Rome hospital in time for Easter. That's the word from the Vatican, which also says the pope is progressively improving from throat surgery and improving his breathing as well.

And that's our look around the world.

(END VIDEOTAPE)

BLITZER: Anchor away. As Dan Rather gets ready to sign of, we'll get surprising revelations from media critic Ken Auletta of "The New Yorker."

Shaquille O'Neal for sheriff? The all-time all-star tells me what he wants to do after life in the NBA. All that coming up.

(COMMERCIAL BREAK)

BLITZER: Dan Rather steps down from the "Cbs Evening News" anchor desk next Wednesday. His long career in the limelight ends amid scandal, as well as praise.

Author Ken Auletta has written an article about Rather in the new issue of the "New Yorker" magazine. I spoke with him today.

(BEGIN VIDEOTAPE)

BLITZER: Ken Auletta, you paint a powerful picture in this article, but a very depressed Dan Rather. The Dan Rather you saw simply doesn't seem to be the Dan Rather all of us have known all these years.

KEN AULETTA, "THE NEW YORKER": Well, the luxury of time, when you have time as a journalist to spend it with a source and with the people around them for two, three months and you have the length to write, as "The New Yorker" gives you, hopefully, you can penetrate below the surface.

And I think Dan Rather is, at age 73, in some ways depressed, because he loves what he does. And he defines his life by reporting, which he loves to do. And, suddenly, he's going to step down next weeks as anchor for CBS News and then worries about, will he have a place at CBS? Even though they've promised him a place on CBS' "60 Minutes Wednesday," it's not at all certain that "60 Minutes Wednesday" will be renewed next season.

So, Dan Rather looks at the future and worries about it and worries about whether he'll have work. And he also worries about his reputation. He spent a distinguished career as a reporter. He has a black mark on September 8 on CBS, when he made a beautiful mistake, and I mean beautiful in the La Guardia sense of a beaut. And he worries that that will be the first paragraph of his obit. And he doesn't want that to happen, and it shouldn't happen.

BLITZER: There were some quotes in there. You interviewed a lot of his colleagues.

Let me read a couple folks them. Mike Wallace: "Rather is a superb reporter and dead honest. But he's not as easy to watch as Jennings or Brokaw. He's uptight and occasionally contrived."

Walter Cronkite said: "It seemed that Rather was playing a role of newsman, that he was conscious of this, whereas the other two appeared to be more the third-party reporter."

Were you surprised at some of these nasty comments by some of his colleagues?

AULETTA: Well, I was surprised that -- Rather, you know, excites some opposition, but I wasn't surprised by something else. They were all saying something that a lot of people said to me about Dan Rather, which is that, as good a reporter as he is, as an anchor, when he reads from a teleprompter, he is stiff and he is not camera-friendly.

And they were just saying -- they were just being honest and saying it on the record what a lot of other people were saying on a not-by-attribution basis. I'll tell you what I was surprised about. I was surprised that that made the front page of the tabloids in New York, those quotes.

This is a 12,000-word article. And to single out those things about a guy's life I know depressed him. And I understand why it would.

BLITZER: I got the impression reading the article -- you spent a day with him while he was working at CBS -- that you got the sense -- at least I came away with the impression that he was putting on a show for you.

AULETTA: Yes, I said that, and I kind of poked fun at it.

But there's a famous story within CBS that there was an AP reporter who covered television by the name of Rothenberg (ph) who once spent a day with Rather probably 15 years ago and it was called the full Rothenberg treatment. Rather pretended to be actually the managing editor, which is his title. But, in fact, the executive producer is the managing editor, because an anchor has got many other responsibilities that he or she fulfills.

And so he was pretending to direct orders, to write scripts, to review scripts, etcetera. And he did a little bit of that. And I invoked for the reader the Rothenberg rule and said at various points he was now approaching a full Rothenberg moment. When the phone rang in the newsroom, he suddenly stabbed, lurched for it and he picked it up and he said, Rather here.

And the person on the other end, he was in Indonesia, a producer, said, who?

(LAUGHTER)

AULETTA: He was just so shocked that Dan Rather had answered the phone. And the truth is, he would not normally have answered the phone.

BLITZER: In the interview at some point, you suggest he was close to tears. What was that about?

AULETTA: Wolf, I just lost your voice. I apologize.

BLITZER: In the interview, you suggest that, at one point, Dan Rather was close to tears at one point. What was that about?

AULETTA: Well, actually, it happened at several points. I interviewed him on three different days, including the full day I spent with him.

And on each of those days, at sometimes surprising moments, talking to him about his fourth-grade teacher Ms. Spencer (ph), talking to him about his mom and dad, talking about covering the war in Vietnam, I would say probably a good 30 or so times, Dan Rather had tears in his eyes, and, by the way, not self-consciously. It wasn't like a man who was going like this and just kind of flicking it, hoping I didn't notice.

He was unashamedly -- had tears in his eyes. And I think what it was about -- at least, what I concluded it was about -- and at one point I asked him, why are you crying? And I think his whole life is flashing before him. And I think it's a mixture of pride and sentiment and probably fear, in the sense of, you're wondering, what's tomorrow going to be like?

BLITZER: There's a full-page picture of Dan Rather in "The New Yorker," the caption underneath, a quote. "A lot of people know Dan and nobody knows him," one of his producers says.

But I have to tell you -- and I'm sure many people have said to you, this is about the most unflattering picture of Dan Rather that I've ever seen. What was the thinking behind using this photo?

AULETTA: Well, you know, the writer is not the photographer. And the photographer actually is a very good photographer.

When I did a profile of Ted Turner several years ago, he took the full-page photograph of Ted Turner, and it was a terrific photo. This is not a terrific photo, in my judgment, and it was not consonant with the complicated view I was portraying of Dan Rather. I thought he looked like a half-Martian figure. And I know the photographer is very good, but it was not my favorite photograph. And I know I've taken some heat about that.

BLITZER: This is a decision that the editors make or the photographer makes, which photo they use, the photographer being Martin Schoeller?

AULETTA: No, Martin Schoeller submits the photograph. He was assigned to take the photograph.

He submits. He comes back with several. The photo editor picks some, and then the editors decide. And that's their prerogative to do that. And, I mean, I looked at the photograph late Thursday afternoon last week as the piece was closing, it was already chosen, and in pages, and I saw a grainier picture and I said, gee, is there something wrong with the eyes?

And they said, no, it's really an interesting photograph. And, listen, this is very personal taste kind of an issue. And I'm sure in good faith, there are people who looked at that and they're very talented people and they liked it. I didn't and don't.

(CROSSTALK)

BLITZER: I'm sure he hated it. The eyes look very weird. The mouth, the teeth look like they're almost metal. But that's a subject for another day.

(CROSSTALK)

AULETTA: Actually, he did not. I have talked to him once. And he did not. His initial reaction was not an objection to the photograph, which surprised me. I thought he would have.

BLITZER: Ken Auletta does good work for "The New Yorker," among other publications. Thanks very much for joining us.

AULETTA: My pleasure, Wolf.

(END VIDEOTAPE)

BLITZER: After the interview, I spoke with Perri Dorset, a spokeswoman for "The New Yorker" magazine. She said that Martin Schoeller, the photographer, is out of the country right now, but has been bombarded with questions about the photo. She noted that he has made his name over the years with these unique and big head shots of famous people, feels that the photo expressed the measure of the Auletta article and that it says a lot about Rather's character. That's what Schoeller's photo, she added -- photos -- she says they often do that.

Keeping kids safe online. Find out what this pro basketball star, not any star, but this one, Shaquille O'Neal, is doing to protect your kids while they're surfing the Internet. My interview with Shaquille, that's coming up next.

(COMMERCIAL BREAK)

BLITZER: We're just getting a statement in from Martha Stewart's company that she will be released from the prison in West Virginia shortly after midnight tonight. She is expected to be at the airport there sometime between 12:30 a.m., 1:30 a.m. CNN will have coverage of that. Martha Stewart is going to be released after midnight tonight. Miami Heat star Shaquille O'Neal says he would like to be packing heat as a sheriff when he's done with the NBA. He's also taking aim at Internet predators as spokesman for a new group to protect children, that group being called Safe Surfin'.

I spoke with Shaquille O'Neal about that.

(BEGIN VIDEOTAPE)

BLITZER: Shaquille O'Neal, congratulations. You're a deputy U.S. Marshal. Tell our viewers how this came about.

SHAQUILLE O'NEAL, MIAMI HEAT: Well, I started police academy about five years ago in Los Angeles. Everyone knows the love I have for the people who defend the streets, the police officers, the people who defend our country, the armed forces, the Army, Navy, Marines. Those guys know that, without them, there would be no me.

I've been named to Internet Crimes Against Children Task Force. And it's my part as a father, as a person, to help keep kids safe on the Internet. And when I was named to the task force, I was also named a deputy U.S. Marshal.

BLITZER: You're really serious about this law enforcement issue. This is not simply a public relations stunt. This is something that motivates you, that drives you.

O'NEAL: I'm very serious.

Ever since I was a youngster, my father always told me to have something to fall back on. And I've had a fabulous NBA career. My NBA career will be over soon, and I want to do something else. I don't want to just sit at an analyst bullpen and talk about what I used to do and talk about guys and criticize guys. I want to do stuff that is going out in the community.

And I think I would be best fit as a sheriff or a chief of police somewhere. So, in doing that, I wanted to do everything the right way. I attended a police academy in Los Angeles. I worked in Los Angeles. I'm now working in Miami Beach. And I'm doing everything the right way. I'm also working on my master's in criminal justice from the University of Phoenix. So, when I'm done playing basketball, I'll walk right over into a chief of police or sheriff's job right away.

BLITZER: So you're really serious? Because everybody knows you make a ton of money. When you retire from the NBA, you're going to go into law enforcement and get a job?

O'NEAL: Yes, I am.

Like I said, my dreams and aspirations have always been to be a chief of police or a sheriff. I admit, as a youngster, I hit the athletic lottery a few times. And I have beautiful children. I have a beautiful wife. But you can't play basketball forever, but I think you can help out in the community forever. BLITZER: Now, you're here in Washington as we speak, because you're here for a specific cause involving the kids and the Internet. Tell our viewers what motivates you on this issue.

O'NEAL: Well, as you know, there's over 70 million kids on the Internet right now.

And there's over -- there's over 400,000 different chat rooms that kids can go to. And I think it's part of my job as a father, as a person, as a law enforcement personnel, to help keep those kids safe. We want to keep the children away from sexual predators and criminals.

BLITZER: So, what are you doing? What can you do about it? What can parents do about it, teachers? What should we be doing?

O'NEAL: I'll tell you, you know, parents need to monitor what their kids do on the Internet. And the kids just need to know the basic tips. Don't talk to strangers. Don't give out your phone numbers. Don't tell people where you are. Don't tell them anything.

BLITZER: All right, let's get back to basketball for a second while I have you. You've been injured a little bit. Are you ready? You're coming back, right?

O'NEAL: Yes. We play against the New Jersey Nets tomorrow, and I'm going to play tomorrow.

BLITZER: How does it feel to be on the injured list, at least briefly?

O'NEAL: You know, Pat Riley and Coach Van Gundy, they told me to take it easy. They didn't want me to try to be a hero and come back too soon. So, I took a couple games off. I got ample rest. And now I'm ready to get back to work.

BLITZER: That awful incident that a lot of our viewers remember in Detroit between Detroit and Indiana, when some of the players went up into the stands, now, as far as I know, that was a total aberration from all the years I've been a huge NBA fan. But give me your perspective.

O'NEAL: I think it was a one-time incident. I think it will never happen again. I think the Commissioner Stern did a great job in handing out the penalties. And we as players, we learn from our mistakes. And we see it all the time and it's something that will probably never, never happen again.

BLITZER: Because the amazing thing about basketball, the NBA, the fans are basically right there on the court, unlike hockey, where they have got walls that separate the fans from the players.

Fans are right there. You don't want to see a situation where you've got to start building a wall around the court.

O'NEAL: Security has never been a problem in an NBA situation. Like I said before, this is a one-time thing. It will probably never happen again.

That's what makes our game so intimate, that the fans are right there. They say certain things. You make a play and you go smack their hands. You get to see a little kid and wink at them or do whatever. And this is a situation that will never happen again.

BLITZER: Are you happy in Miami now? Because all of our viewers know there was tension between you and Kobe Bryant when you both played for L.A.

O'NEAL: There was never really tension between myself and Kobe. We're just bullheaded guys trying to accomplish the same thing. And we did accomplish many of the championships that we wanted to accomplish.

But I'm very happy in Miami. I'm very happy with the law enforcement and what they're doing in protecting our country. I'm very happy with the police officers all over the world.

And I'm very happy with you, Mr. Wolf Blitzer. You are the man.

(LAUGHTER)

BLITZER: Our viewers are going to think I paid you to say that.

O'NEAL: No, of course not. No, of course not. I love your show.

BLITZER: All right.

(LAUGHTER)

BLITZER: Shaquille O'Neal, arguably -- I say arguably because you've got a lot of competition -- the best in the NBA right now, but we shall see as the season continues. Still got a long way to go.

(CROSSTALK)

BLITZER: Always good to have you on the program, Shaquille. Good luck.

O'NEAL: All right. Nice to see you again, Wolf.

BLITZER: Thank you.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: That's it for me. I'll be back tomorrow, 5:00 p.m. Eastern. I'm Wolf Blitzer in Washington.

"LOU DOBBS TONIGHT" starts right now.

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