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Iranian President Suffers Setback in Election; Miss USA Keeps Her Crown; New Orleans Rebuilding Continues

Aired December 19, 2006 - 12:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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CONDOLEEZZA RICE, SECY. OF STATE: ... there are children who have suffered, and we are concerned for their suffering, and that of their families. But we also are concerned that these medics will be allowed to go home at the earliest possible date. These are people who deserve to go home. And we are very disappointed at the outcome of this verdict. And I want to you know...

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JIM CLANCY, CNN ANCHOR: All right, the Bulgarian minister of Foreign Affairs Ivailo Kalfin joins us now live from Washington. He's just met with Secretary of State Condoleezza Rice.

Mr. Kalfin, what can Bulgaria, what can Washington do at this stage?

IVAILO KALFIN, BULGARIAN FOREIGN AFFAIRS MINISTER: I think that really the decision in court was very much disappointing, because the court didn't take into consideration all of the very, very clear evidence about the innocent of the Bulgarian nurses.

We are also very much concerned, and Bulgaria in parts of the efforts of the international community helping the children, that are infected with the AIDS virus. But again, making the linkage between this case and the work of the Bulgarian nurses is absolutely unfounded and unfair.

What we can do from this moment on, this is to urge the Libyan authorities there is still a legal process that can be followed in Libya. I think that (INAUDIBLE) in January is going to make (INAUDIBLE) that these innocent nurses are detained, and that are there in Libyan prison. There should be a model and very clear commitment of the Libyan authorities, not only the judicial system, but also leadership of the country, so that we can find a positive solution of this case as soon as possible.

CLANCY: When you look at this doctor, when you look at the nurses that are inside that cell, that cage, if you want to call it that, inside the courtroom, I mean, this case is a labyrinth of different cases. The government is saying international intelligence agencies directed this doctor and these nurses to intentionally spread a manufactured form of AIDS? KALFIN: This is absolutely ungrounded and there is not any evidence for that.

CLANCY: But no evidence except, except, that everybody admitted it, or at least some of the people, some of the nurses admitted it. And now they say, or they have said in the past -- this has all been to court, too -- just to explain this for our audience, they say they were tortured to confess to those charges?

KALFIN: Exactly. There are two of them (INAUDIBLE) the Palestinian doctor who at the very early stage of the case, of the trial have committed, they have intentionally used bad hygiene in the hospital. But they had been tortured at that point. And there was a case, there was a trial against doctors in Libya. And once again, there's many, many evidences, including there's (INAUDIBLE) published in the "Metro (ph)" magazine, showing first that this is not an artificial virus; this is an African-type virus. Second that the children ere infected much before the arrival of the Bulgarian medical staff in this hospital. And this (INAUDIBLE) several researchers, including here in the United States, also by some European researchers, so there isn't really any evidence that there cannot be a linkage here, the poor hygiene and the..

CLANCY: Yes, the parents seen out there holding up the, you know, the photographs of the children. I believe out of the 400 -- what, at least 50 have already died of full-blown AIDS. Many others are afflicted by it. They don't understand. The Bolivian government says that it offered Bulgaria the option of, you know, pay the victims what, $15 million?

KALFIN: What they're saying is that Bulgaria should pay blood money for the nurses. You don't have any reason to pay any blood money, because there is no guilt for them. We feel really very sorry and there is lots of sympathy. And there is the Bulgarian community, who is much involved in helping the Libyan children that are infected. But it has nothing to do with the Bulgarian nurses, and there is no question to pay blood money for them.

And there is another (INAUDIBLE). They linked this to the Lockerbie (ph) case, saying they have paid $10 million per person in the Lockerbie case. Now we have to be compensated, and there is no ground for such a requirement.

CLANCY: At the same time, are you talking at all with the Libyan government, trying to pursue with them in any way now what you can do in the case of these nurses? Because they have been sentenced to death, not for the first time.

KALFIN: Yes, we are talking to the Libyan government. And we are talking not -- only by letter, but there is a four-party forum where the United States and the (INAUDIBLE) are participating. We tried to convince the Libyan authorities really to speed up this case. And this is, I think, very crucial, because for eight years, we are still somewhere lost in the judicial procedure.

And if the court is since enough and fair enough, then all of this evidence are going to be taken into consideration.

CLANCY: Ivailo Kalfin, The deputy prime minister and foreign minister, I want to thank you very much for being with us to discuss this case. It certainly has many Bulgarians today very confused, angry and certainly disappointed.

KALFIN: I thank you.

COLLEEN MCEDWARDS, CNN ANCHOR: All right, well, coming up, the return of the reformers.

CLANCY: They say, they sat out the last election in Iran, and they got Mahmoud Ahmadinejad.

That's right. This time, they sent a message to the hard-liners, but was anyone listening? We'll take a look.

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MCEDWARDS: Welcome back to CNN International and YOUR WORLD TODAY.

CLANCY: We are seen live in more than 200 countries all around the globe. Thanks for being with us today.

Well, partial results from Friday's voting from municipal councils and that all-important assembly of experts in Iran who chooses the president ultimately or who can run for president, indicate political allies of President Mahmoud Ahmadinejad aren't exactly doing as well as expected.

Mr. Ahmadinejad said that it only shows Democracy is Iran is alive and well. His opponents say it's a repudiation of the president's hard-line policies.

Aneesh Raman is there.

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ANEESH RAMAN, CNN CORRESPONDENT (voice-over): Casting his vote, Iran's president knew this election would be seen as a referendum on his hard-line policies. And with results all but official with record turnout reported, the message is clear, most Iranians want change.

It's evident in the race for Tehran's city council, viewed as a barometer for national trends. There, moderate-conservatives, led by Tehran's mayor are winning a majority of seats and reformists are making a big comeback. Their voters hopeful both will address growing economic problems at home.

On the streets of moderate north Tehran, the results are being viewed as a political blow to the president. But there is also caution voiced by those like 19-year-old (INAUDIBLE)

UNIDENTIFIED FEMALE (through translator): The reformist wins make a difference, but not a huge one right now, given their small numbers. Still, it's better than nothing and sends a message.

RAMAN: Nobody expects immediate change. Hard-liners still retain the power nationally in Iran. And to hear their views, it's best to leave the capital.

(on camera): We've traveled about 2 and a half hours south of Tehran now to the holy city of Gaul. Behind me, this is one of the most important mosques in all of Iran and this city is one of the most conservative places in the entire country.

(voice-over): The bus stops are filled with women wearing shadors. Mullhas ride motorbikes and Islamic law dominates everyday life. Here, Ahmadinejad supporters are expected to do extremely well.

The West is a culture of war, this man tells me. And it has been an still is a morally corrupt culture. Ahmadinejad's defiance of the West keeps his allegiance of the base, and despite the results, the defiance continues.

MAHMOUD AHMADINEJAD, IRAN PRESIDENT (through translator): If countries insist on preventing Iran from using nuclear technology by imposing sanctions, the Iranian nation would consider that as hostility and will change it's behavior in return.

RAMAN: An indication that while hard-line conservatives may have suffered a defeat, Iran's president may see that as a reason to ramp up his national defiance, not soften it, as he tries to win back support that he's clearly lost.

Aneesh Raman, CNN, Tehran.

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MCEDWARDS: All right. For more on the Iranian election and what it might say about the country's future direction, we're joined by Reza Aslan, an expert on Islam and the author of the book "No God But God." Thank you so much for being here.

REZA ASLAN, CBS NEWS ANALYST: My pleasure.

MCEDWARDS: So, what's the message in here for Ahmadinejad?

ASLAN: Well, the message is this is a man who came to power in Iran based on a single platform and that was reforming the economy, rooting out corruption, and giving particularly the poorer classes, the rural classes the opportunity to lift themselves up.

And for one reason or another, he has yet to actually put together any of these promises in any serious or meaningful way. And I think most Iranians, even those who voted for Ahmadinejad, and perhaps even those who continue to support his posturing, his nationalistic views, his views on the nuclear program are becoming a little bit fed up with the fact that he has yet to really, really go through with any of the promises that he made, with any of the election promises that he's made. MCEDWARDS: So he's mucked up the election promises, particularly the economy. But does this message matter? Does he even have to listen to this and does he really have any power to do anything differently?

ASLAN: That's an interesting way of asking that question and I'm glad you did it because you're absolutely right. The president of Iran, the democratically elected president of Iran has almost no power whatsoever in that country. Certainly, does not have any say whatsoever in any matter of foreign policy.

And in fact, has absolutely no say whatsoever in Iran's nuclear program. That's something that I think a Western audience tends to forget, because of this posturing, because of the fact that he has this bully pulpit that he uses so effectively. But I think it's important to recognize that in the end, all-important decisions are made with the unelected clerical establishment which is becoming actually quite fed up with Ahmadinejad.

MCEDWARDS: So where does that leave -- the whole rhetoric question is an interesting one because that tends to be what grabs the headlines. But he's playing to his base, right? He's playing to his home crowd. So is that going to change?

ASLAN: It's not going to change. In fact it's important to understand that Ahmadinejad is playing not only to his base in Iran, which of course, includes the rural classes, some of the lower middle class and poorer classes, and of course, the military in Iran.

In fact, in many ways, Ahmadinejad represents a sort of militarization of Iranian politics more than anything else. But Ahmadinejad also recognizes that he has a larger base in the wider Arab and Muslim world.

Indeed, I would say he's far more popular outside of Iran than he is inside of Iran. In some ways he's kind of set himself as a new Nasr, if you will. This kind of person around which the entire Muslim world can gather around in this anti-Western, anti-Israeli sentiment that is so pervasive in that region.

MCEDWARDS: You mentioned the issue of the nuclear program and I want to hear you on that. Do you think there'll be any change in Iran's hard-line stance?

ASLAN: There is nothing anyone on Earth can do in order to keep Iran from developing a civilian nuclear program. And the sooner, I think, particularly the Western powers recognize that fundamental fact, the sooner they can get to what's really important and that is making absolutely certain that its civilian nuclear program does not transform into a weaponized program.

That is still something at that West has plenty of options to prevent. But this kind of hard-line stance from Europe and the United States that all enrichment has to stop before any discussion can happen, that's really a non-starter. I think a much more fruitful dialogue would be, first and foremost to go around Ahmadinejad. To completely ignore him, because his opinion is irrelevant, as far as foreign policy goes in Iran. But also to recognize that something's got to give. That we have understand to that Iran is going to develop a civilian program. And that our primary concern has to be, OK, now, how do we make sure that that program does not become a weapons program?

MCEDWARDS: All right. Reza Aslan, we've got to leave it there. Thank you so much for your thoughts. Pleasure to talk to you.

ASLAN: My pleasure.

CLANCY: Right to the point. He was very interesting.

MCEDWARDS: He's great.

CLANCY: Still ahead, on YOUR WORLD TODAY. Miss USA was in real trouble of losing her crown.

MCEDWARDS: After accusations of partying in bars, under age drinking, the beauty queen's future has now been decided. We will tell you what happened after the break.

CLANCY: I can't wait.

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CLANCY: Well, we actually have an answer in the case of that famous beauty queen, Miss USA. She was called into her boss's office and she thought she was going to hear Donald Trump's famous line of "you're fired!"

MCEDWARDS: It wasn't quite the expression though, I think it got pretty close. Apparently Trump has a more softer, compassionate side after all.

CLANCY: Now we should back up a little bit in case you're just getting in on this, it started when Miss USA Tara Conner, got into a bit of hot water.

MCEDWARDS: Yes, just a bit, for what they called behavior unbecoming of a beauty queen. That is for sure. Well Brooke Anderson joins us now live from New York with this story of a small-town girl getting into big trouble in the big city -- Brook?

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: That's right, Colleen.

You know Donald Trump, co-owner of the Miss USA Organization, Miss USA pageant believes in second chances because that is exactly what he's giving Miss USA, Tara Conner. Donald Trump announced today at a press conference today here the Trump Tower that he will not fire Tara, despite allegations of underage drinking, despite allegations of drug use, despite reports that she hadn't shown up for some scheduled appearances. Trump said Conner will remain Miss USA, that there will be drug testing going forward, and that she will go to rehab to work through her issues. Tara Conner also spoke, a tearful Tara Conner also spoke today at the press conference. Let's take a listen to what Trump and Tara Conner had to say.

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DONALD TRUMP, REAL ESTATE MAGNATE: I believe after speaking with Tara, I believe that she can do a tremendous service to young people. She's agreed to go into rehab. She knows that if she makes even the slightest mistake from here on, she will be immediately replaced.

TARA CONNER, MISS USA: And you'll never know how much I appreciate Mr. Trump for saving me on this one.

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ANDERSON: Conner also said she apologizes to her family if she has disgraced them, and that she's not going to let them down this time around. Paula Shugart, the president of the Miss Universe Organization told me after the press conference that never in the past have they had a drug-testing policy with anyone.

But this is something new they have implemented with Tara. Trump nor Tara nor Shugart would elaborate on the drug testing, on the specifics of the allegations. Shugart did tell me that she's going to rehab to deal with a number of issues. She told me they have not decided where she will attend rehab or when that will begin. She will be spending the holidays with her family first. For now, Tara Conner remains Miss USA, though.

MCEDWARDS: Brooke, is anybody calling this a bit farcical? I mean, here she is, she's barely 21, she's barely crowned and she's off to rehab. I mean, come on.

ANDERSON: Well they're hoping that she will become a role model for other people who are maybe struggling with some other issues. Shugart told me that after the press conference. She said, you know, we kept her. She's a good person. She means well. Yes, we've had trying times with her, but we want to get her help. And they hope on the back end she comes through this and really sets a good example for others who may have had similar problems.

MCEDWARDS: Yes, you bet they hope. Brooke, thank you so much, appreciate that. Brooke Anderson for us there.

CLANCY: All right, not off to rehab, down to New Orleans, the Big Easy, where there's at least one sign of a rebirth.

MCEDWARDS: That's right. A sound of it, as well. The bells of street cars ringing again, at least on some of the routes.

Susan Roesgen takes us there.

(BEGIN VIDEOTAPE) SUSAN ROESGEN, CNN GULF COAST CORRESPONDENT (voice-over): It's a New Orleans treasure, a ride on the street car is a ride back in time. Street cars first rolled on St. Charles Avenue in 1835, gliding past the avenue's graceful oaks and grand mansions until Hurricane Katrina. The hurricane knocked down the electric wires and the total repairs will cost $11 million dollars. But now part of the track is no longer empty.

CLARENCE OLIVER, STREETCAR OPERATOR: You hear the wheels on the tracks and you can feel it. It's just a feeling that sends a rush to you that's just incredible.

ROESGEN: 25 years ago Clarence Glover was working in the bank on St. Charles, looking out the window when he saw a street car go past and knew his true calling. He's been a streetcar driver ever since.

GLOVER: It was a feeling that I didn't think I was going to miss, but I did.

ROESGEN: Right now the city can only afford to open the first mile and a half of the track and it probably won't attract anywhere near the three million people that used to ride it each year. For tourists, the street car is as popular as Mardi Gras beads for Bourbon Street. But for locals, it's part of the city's soul. Peggy Scott Laborde is a local documentary filmmaker.

PEGGY SCOTT LABORDE, FILMAKER: In a way, a streetcar is the continuum of the past -- to set that, there is something very reassuring for us.

ROESGEN: For Clarence Glover, driving the streetcar again makes him proud.

GLOVER: It makes you feel like that you are the main attraction. Everyone wants to wave at you and see you.

ROESGEN: Susan Roesgen, CNN, New Orleans.

(END VIDEOTAPE)

MCEDWARDS: And there's some good news, I'm Colleen McEdwards.

CLANCY: I'm Jim Clancy. Back on track in New Orleans. This is CNN.

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