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Tuesday, March 27

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Editor's Note: The CNN Wire is a running log of the latest news from CNN World Headquarters, reported by CNN's correspondents and producers, and The CNN Wire editors. "Posted" times are Eastern Time.

School teachers, children held hostage on Philippine bus

MANILA (CNN) -- At least two gunmen took a group of more than 30 preschool children and their teachers hostage on a bus as they left on a field trip Wednesday morning in Manila, authorities said.

The gunmen were demanding housing and education for kids at a daycare center.

According to local media reports, one of the hostage-takers was the owner of the daycare center and a local politician identified him as Jun Ducat, a man who had taken two Catholic priests hostage over a pay dispute in the 1980s.

"He actually knows all of these children and all of the teachers of the bus," said Social Welfare Secretary Esperanza Cabral, who talked with Ducat on the phone. "He has been a donor to the daycare center and to the school." (Posted 2:05 a.m.)

Study released examining connection between IBM plant and cancer in residents

NEW YORK (CNN) -- Residents living near an IBM computer-parts plant in upstate New York who claim they were sickened with cancer due to chemical spills from the plant received muted support for their claims from a state and federal health report released Tuesday.

The study follows a scathing report released in 2006 that found evidence of elevated cancer and fetal deaths in the area surrounding the Endicott, N.Y., plant, which was sold by IBM in 2002.

In 1979, IBM spilled a number of chemicals in Endicott that seeped into the ground, creating a "plume" underneath approximately 500 homes, according to 20-year resident and community group activist Alan Turnbull.

Turnbull's wife, Donna Turnbull, received chemotherapy and radiation for cancer in her tongue and throat which she and her husband attribute to the inhalation of fumes and vapor that rose from the plume.

IBM spokesman Ari Fishkind said the company is not commenting publicly on the report released Tuesday by the New York State Health Dept. and the U.S. Dept. of Health & Human Services.

-- By CNN's Katy Byron (Posted 8:49 p.m.)

Judge: Jeffs trial to remain in southern Utah -- for now

ST. GEORGE, Utah (CNN) -- A judge Tuesday denied a request to move the trial of polygamist sect leader Warren Steed Jeffs, charged with being an accomplice to rape by arranging the marriage of a 14-year-old girl to her 19-year-old cousin, out of southern Utah because of media coverage.

But Fifth District Judge James Shumate said he will reconsider the request, made by Jeffs' defense attorneys, immediately if difficulties are encountered during voir dire, the process of jury selection.

Jeffs' trial initially was to begin April 23, but Shumate last week postponed it and did not set a new date. The delay, Shumate said in his order, was due to "recent information in the case" although he did not elaborate.

Also Tuesday, Shumate denied two other defense motions -- a request to dismiss the case and a request to overturn Shumate's earlier decision to bind Jeffs over for trial. (Posted 8:19 p.m.)

Senate keeps call for Iraq pullout in spending bill, defies veto threat

WASHINGTON (CNN) -- Defying a threatened veto by President Bush, the Democratic-led Senate on Tuesday turned back a Republican attempt to remove a call for a U.S. withdrawal from Iraq from a $124 billion war-spending bill.

Though the 50-48 vote is far short of the two-thirds margin needed to override a veto, Democrats said the measure was a sign of growing support for bringing the 4-year-old war to an end.

The bill would require U.S. combat troops to begin withdrawing from Iraqi within 120 days and complete that pullout by next March. A reduced American contingent would stay to focus on training Iraqi troops and police and battling al Qaeda terrorists. (Posted 6:48 p.m.)

False rumors of Iran firing on U.S. ships send crude oil price up

NEW YORK (CNNMoney.com) -- U.S. crude oil futures spiked over $5 a barrel in electronic trading late Tuesday on rumors that Iran fired on U.S. Navy warships.

Crude gave up most of those gains after reports of a confrontation were denied, according to one trader.

U.S. light crude for May delivery jumped $5.18, or about 8 percent, to $68.91 a barrel in electronic trading before settling back down to $64.40, $1.47 above Tuesday's closing price on the New York Mercantile Exchange.

"We have no information at this time that an incident has taken place in the Gulf," Gordon Johndroe, a spokesman for the National Security Council, said about reports of a confrontation between Iran and U.S. Navy warships.

Said Andy Lebow, a broker at Man Financial in New York, "This just illustrates how this market is on tenterhooks regarding the situation in the Gulf." (Posted 6:32 p.m.)

Soldier, government contractor killed in Green Zone attack

BAGHDAD (CNN) -- A U.S. soldier and a U.S. government contractor were killed Tuesday a rocket attack on Baghdad's heavily fortified Green Zone, U.S. officials said.

The U.S. military announced the death of the soldier in a written statement that added another soldier was wounded in the attack.

Daniel Speckhard, the U.S. Embassy's Baghdad charge d'affaires, announced the death of the American contractor in a separate statement.

The names of the dead were withheld pending notification of next of kin. (Posted 6:04 p.m.)

McCain: New Iraq strategy 'succeeding as we speak'

WASHINGTON (CNN) -- Sen. John McCain said Tuesday that President Bush's new strategy in Iraq is "succeeding as we speak," and he believes the American people can be persuaded to support continuing a U.S. military presence in Iraq if they can be shown a "path to success."

"I am confident in a short time we've already achieved some measurable successes," McCain said on CNN's "The Situation Room," citing improved security in some Baghdad neighborhoods and better cooperation from tribal leaders in Anbar province. "That doesn't mean it isn't going to be hard and tough."

The Arizona Republican, who is seeking his party's 2008 presidential nomination, said he believes that a year from now, the situation in Iraq will either be much better or much worse, and, if the latter situation comes to pass, "then obviously we're going to have to examine a set of bad options."

"But I'm confident it won't be (worse)," McCain said. "If I'm wrong, we've got a lot more problems than anything it does to my political reputation." (Posted 5:58 p.m.)

Senate keeps call for Iraq pullout in spending bill, defies veto threat

WASHINGTON (CNN) -- Defying a veto threat from President Bush, the Senate Tuesday voted 50-48 to keep a call for a U.S. withdrawal from Iraq in a $124 billion war spending bill.

The down-to-the wire vote keeps language requiring U.S. combat troops to begin withdrawing from Iraqi within a year and complete that pullout in another year. A reduced American contingent would stay to focus on training Iraqi troops and police and battling al Qaeda terrorists.

Senate Minority Leader Mitch McConnell, R-Ky., said the bill's demand for a U.S. withdrawal would effectively set a "surrender date" in the 4-year-old war.

But Sen. Dick Durbin, the chamber's No. 2 Democrat, said the call for a pullout is a step toward bringing "the worst foreign policy mistake of our time" to an end. (Posted 5:37 p.m.,)

Advocacy group: Subprime foreclosures will leave 1 million fewer homeowners

NEW YORK (CNNMoney.com) -- About 2.4 million holders of subprime mortgage loans made between 1998 and 2006 will lose their properties to foreclosure, according to a report from the Center for Responsible Lending, a non-profit policy and advocacy organization for home owners.

Worse, that will result in a net home ownership loss of 1 million households.

CRL's analysis rebutted the mortgage industry's claims that the increase in subprime loans has opened up home ownership for millions of low income buyers. Instead, CRL contends, relatively little subprime lending is used for first-time home buying.

Testifying before the House Finance Committee on Tuesday, CRL's president, Michael Calhoun, said the primary reason for the jump in foreclosures is "the abandonment of underwriting standards." (Posted 5:14 p.m.)

Dozens of Iraqi police fall ill after dinner

BAGHDAD (CNN) -- At least 100 Iraqi police fell sick after having dinner Tuesday at the Police Academy Headquarters in central Baghdad, an official with the Iraqi Interior Ministry told CNN.

The official said that the sickened police officers were sent to at least three hospitals in the capital for treatment.

The investigation is still under way to find out what caused the illnesses, the official said, adding that samples of the food and water were being tested. (Posted 4:15 p.m.)

Pat Tillman's mother rejects latest explanation of probe of son's death

(CNN) -- The mother of Cpl. Pat Tillman, the former NFL player killed by friendly fire in Afghanistan in April 2004, rejected Tuesday the latest explanation from the U.S. military about the circumstances surrounding her son's death.

"It became very obvious, early on, that they were lying to us," Mary Tillman said on ESPN Radio's Dan Patrick Show. "They were only telling one side of the story. They weren't telling the other side."

The military reported Monday that nine military officers, including four generals, will face "corrective action" for making critical mistakes in the aftermath of the Army Ranger's death.

An investigation by the Army's inspector general and Criminal Investigation Command concluded officers in Tillman's chain of command knew almost immediately after his death that he had been killed by fire from his own platoon, but that information was withheld from his family for more than a month, in violation of Army regulations. (Posted 4:07 p.m.)

Attorney pushes to release reputed black book of alleged D.C. prostitution ring

WASHINGTON (CNN) -- A defense attorney Tuesday filed papers asking a judge to clarify a restraining order against a reputed "black book" compiled by a woman accused of running a large-scale prostitution ring with clients in the District of Columbia, Maryland and Virginia.

The documents last week were ruled to be valuable business records belonging to Deborah Jeane Palfrey, who for more than a dozen years ran a company called Pamela Martin & Associates. Palfrey is fighting a multiple-count racketeering and money-laundering indictment.

Attorney Montgomery Blair Sibley told CNN he filed the papers Tuesday because the judge's order may not apply to copies of the original documents. Sibley has said a copy has already gone to a media outlet that is trying to match names with phone numbers. --From CNN's Paul Courson (Posted 3:11 p.m.)

Webb calls aide's arrest on weapons charges 'unfortunate'

WASHINGTON (CNN) -- Sen. Jim Webb called the arrest of a top aide on weapons charges "extremely unfortunate" Tuesday after the aide was stopped as he brought the senator's loaded pistol into a Senate office building.

Through an attorney, Phillip Thompson pleaded not guilty to a felony charge of carrying a pistol without a license Tuesday afternoon. He was released on his own recognizance after spending the night in jail.

Capitol police arrested Thompson after finding the weapon in a bag he was carrying into the Russell Senate Office Building Monday afternoon.

Webb, who has a concealed handgun permit in Virginia and an A rating from the National Rifle Association, said he handed his gun off to aides before getting on a plane to New Orleans on Friday. He said he did not give Thompson the weapon directly, and was unsure how it ended up with him. (Posted 2:43 p.m.)

Sunni tribal leader killed in assault

BAGHDAD (CNN) -- Attackers Tuesday launched an assault on the house of an anti-al Qaeda in Iraq tribal leader, killing one of his sons -- a tribal leader in his own right.

An Iraqi Interior Ministry official told CNN the militants used machine guns and rocket-propelled grenades to assault the house of Dhahir al-Dhari, leader of the al-Zobaa tribe, one of the Sunni tribes that opposes al Qaeda in Iraq.

The slain son is Sheikh Harith Dhahir al-Dhari, also a tribal leader. Two guards were wounded.

The incident took place in Khan Dhari, on the western outskirts of Baghdad, It is not clear where the father was at the time of the attack. (Posted 2:36 p.m.)

15 militants thought dead in solder-insurgent battle Monday in Anbar

BAGHDAD (CNN) -- U.S. soldiers and insurgents squared off in Iraq's Anbar province Monday amid two suicide truck bombs and an assault on a coalition post, the U.S. military said Tuesday.

"Initial estimates indicate as many as 15 terrorists were killed," the military said, while eight U.S. soldiers were wounded in the fighting. (Posted 2:14 p.m.)

Jack Valenti, long-time Hollywood lobbyist, suffers stroke

WASHINGTON (CNN) -- Jack Valenti, who served as president of the Motion Picture Association of America for nearly four decades, has suffered a stroke and has been taken to Johns Hopkins Hospital in Baltimore, officials said.

Valenti, 85, suffered the stroke "recently," said a spokeswoman for the Motion Picture Association of America, which he led for 38 years.

"He is under a doctor's care; he is resting comfortably," the spokeswoman said. (Posted 1:36 p.m.)

At least 50 killed by Tal Afar bombs

BAGHDAD (CNN) -- Attackers detonated truck bombs in the northern Iraqi city of Tal Afar on Tuesday, killing 50 people.

The bombs targeted markets in the northern and central part of city, the mayor told CNN.

Mayor Najam Abdulla -- who said another 103 people were wounded -- told CNN the explosions came within few minutes of each other, one in a market in the central part of the city and the other in a market in the northern part.

Separately, police in Tal Afar said Tuesday that police killed two militants in a house being used as a suicide belt factory on Monday, and one of the victims was wearing a suicide belt. Tal Afar, located near the Syrian border in Nineveh province, is a predominantly Turkmen community with both Sunni and Shiite residents. (Posted 1:19 p.m.)

Defense contractor admits sending classified materials overseas, will pay $100 million penalty

WASHINGTON (CNN) -- The leading manufacturer of night vision gear for the Defense Department has admitted sending classified materials overseas and will pay a $100 million penalty, according to federal prosecutors, who say the actions of ITT Corp. have jeopardized the security of U.S. soldiers.

ITT, based in Roanoke, Va., exported classified or sensitive technical data to China, Singapore and Britain without having obtained authorization from the United States, prosecutors said.

The conviction is the first involving a major defense contractor violating the Arms Export Control Act, prosecutors said.

Saying that American soldiers are "the principal victims of ITT's crimes," U.S. Attorney John Brownlee said he has structured the $100 million penalty so that half of the money is spent by ITT to develop a next-generation night vision system and "ensure that our soldiers have the best night vision equipment in the world." --From CNN Producer Mike M. Ahlers (Posted 12:36 p.m.)

Blair warns of a 'different phase' if diplomacy fails to free Britons held by Iran

LONDON (CNN) -- British Prime Minister Tony Blair warned Iran on Tuesday that negotiations to secure the release of 15 sailors and marines will "move into a different phase" if diplomacy fails.

"But at the moment, what we are trying to do is to make sure that that diplomatic initiative works," Blair said on ITV's "Good Morning TV."

British Foreign Secretary Margaret Beckett also delivered a "robust" message to her Iranian counterpart, Manouchehr Mottaki, on Tuesday, the British Foreign Office said.

Iran has refused to say where it is holding the Britons or allow British diplomats access to the detained men and women, who were seized Friday in what Iran said was its territorial waters.

On Monday, hard-liners in Iran urged the government to charge the Britons with espionage, and put them on trial. (Posted 12:21 p.m.)

Inquest begins into death of Anna Nicole Smith's son

NASSAU, Bahamas (CNN) -- A formal inquest into the death last year of 20-year-old Daniel Smith opened Tuesday in the Bahamas, a day after the release of autopsy results showed that his mother, Anna Nicole Smith, died of an accidental drug overdose.

Daniel Smith died Sept. 10 in his mother's hospital room in the Bahamas, just days after the birth of her daughter, Dannielynn.

Pathologist Cyril Wecht, who obtained test results from a Pennsylvania laboratory, told CNN that the son died from a combination of methadone and the antidepressants Lexapro and Zoloft. (Posted 12:20 p.m.)

Tony Snow's cancer has returned, White House spokeswoman says

WASHINGTON (CNN) -- White House spokesman Tony Snow's cancer has returned and has spread to his liver, his deputy, Dana Perino, announced Tuesday.

Snow had previously been treated for colon cancer in 2005 and had his colon removed at that time.

Perino said an operation Monday to remove a growth from Snow's abdomen showed that the cancer had returned and had metastasized to his liver. He will consult his doctors about an aggressive plan for treatment that is likely to include chemotherapy, she said at the White House briefing.

President Bush spoke to Snow earlier Tuesday, and in a brief statement to reporters in the Rose Garden said his spokesman was "upbeat."

"His attitude is one that he is not going to let this whip him," the president said. "My attitude is that we need to pray for him and for his family. ... My message to Tony is to stay strong. A lot of people love you and care for you and pray for you and we're hoping for all the best." (Posted 11:18 a.m.)

Pakistan signs new peace deal with pro-Taliban tribal leaders

ISLAMABAD, Pakistan (CNN) -- Pakistan has signed a peace deal with pro-Taliban tribal leaders near its border with Afghanistan, despite recent criticism that President Pervez Musharraf is giving militants free rein in the tribal areas.

Local government authorities and tribal elders in Bajaur agency -- about 50 miles (80 km) west of Jalalabad, Afghanistan -- inked the deal on Monday with tribal leaders in the city of Khaar, government officials told CNN.

Some 800 tribal elders, local clerics and members of parliament were present at the signing.

Under the deal, the tribal leaders agreed not to harbor any Taliban or al Qaeda terrorists. In return, the government agreed not to carry out any arrests or raids without alerting tribal elders.

Anyone who violates the agreement will have their house torched and demolished and will be expelled from the area, in line with tribal customs, a senior government official told CNN. (Posted 10:31 a.m.)

U.S. Navy moves second carrier close to Iran, starts exercises

WASHINGTON (CNN) - The U.S. Navy began large-scale exercises Tuesday in the Persian Gulf, marking one of its biggest shows of force since the days leading up to Operation Iraqi Freedom in early 2003, and putting numerous U.S. ships just miles off the coast of Iran.

The exercises, led by two aircraft carriers, the USS John C. Stennis and the USS Dwight D. Eisenhower, put the two giant ships and their support ships, called strike groups, within easy striking distance of Iran, which makes up the eastern coastline of the Persian Gulf.

The ships begin their staging just days after Iran took several British sailors hostage, claiming they were in Iranian waters.

The Navy has long planned putting the Stennis into the gulf after it completed flight operations over Afghanistan as part of Operation Enduring Freedom, according to U.S. Navy officials. Navy officials said the exercise between the two ships was more of a hasty decision, however.

President Bush ordered an additional carrier to the region to send a message to Iran that the United States could put a show of force in the region quickly as well as giving a security commitment to regional allies. --From CNN Pentagon Producer Mike Mount (Posted 10:03 a.m.)

10 killed, 25 wounded in Ramadi suicide car bombing; 8 killed in Baghdad, Najaf incidents

BAGHDAD (CNN) -- A suicide car bomb detonated just north of Iraq's Anbar provincial capital of Ramadi, killing 10 civilians and wounding 25, police told CNN.

Elsewhere in Iraq on Tuesday, 12 people were killed in scattered incidents in Baghdad, Kirkuk, Tal Afar and near Najaf city.

Col. Tareq al-Thibawi told CNN that the Ramadi bomb exploded outside a shopping area and near a restaurant on a main thoroughfare around 1 p.m. in the Albu Thaib district. Al Qaeda in Iraq has been targeting the district, where local tribes have taken on the militants.

The tribes are affiliated with the Anbar Salvation Council -- formed nine months ago. The council -- which includes a number of tribal leaders who decided to fight al Qaeda in Iraq -- has the backing of Prime Minister Nuri al-Maliki's government.

This comes a day after security and coalition forces started "a major operation to clear al Qaeda" from parts of Ramadi, the U.S. military said. --From CNN's Mohammed Tawfeeq (Posted 9:27 a.m.)

U.S. Marine killed in Anbar province

BAGHDAD (CNN) -- A U.S. Marine died Saturday during combat operations in Anbar province, west of Baghdad, a military statement released Tuesday said.

The Marine was assigned to Multi National Force-West.

Since the start of the war, the U.S. military has suffered 3,242 fatalities in Iraq.(Posted 9:03 a.m.)

New Central Command leader: No civil war in Iraq but country needs 'more pervasive security' before troops leave

BAGHDAD (CNN) -- Iraq isn't engulfed in a "civil war" and there are signs of hope outside strife-torn Baghdad, the new leader of the U.S. Central Command says.

But the country needs "more pervasive security" -- as well as a more efficient and responsive government -- before the United States starts withdrawing troops, said Adm. William J. Fallon.

Fallon, interviewed by CNN's Kyra Phillips, stressed that "security" in the war-weary country is clearly the biggest challenge for the nascent government and the U.S.-led coalition.

Fallon said there can be no Iraqi confidence in the new governmental system without strides in keeping the peace. If law and order can't be implanted, he said, "we're not going to be able to get there."

On the other hand, he isn't envisioning U.S. troops mired down in Iraq for decades. And he is realistic about the limitations of government; he doesn't foresee the development of a government that is a "mirror-image" of the U.S. political system. (Posted 8:27 a.m.)

Olmert, Abbas agree to meet every two weeks

JERUSALEM (CNN) -- Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas have agreed to meet every two weeks to discuss security issues and "build confidence," U.S. Secretary of State Condoleezza Rice said at a news conference in Jerusalem Tuesday.

Rice has shuttled between the Middle Eastern neighbors since arriving on Sunday. Neither Olmert nor Abbas attended the news conference.

According to Rice, the meetings will initially focus on "immediate concerns," including cross-border movement and access, and preventing arms smuggling and rocket fire by "terrorists" from Gaza. Israel has greatly restricted travel between Israel and Gaza because of attacks by Palestinian militants.

"These are initial discussions to build confidence between the parties," Rice said. "Palestinians must know that their state will be viable. Israelis must know that a future state of Palestine will be a source of security, not a threat to it."

The hope is the regular meetings between the two leaders will lead to something greater, like Middle East peace, or what Rice said would be "two states living side by side in peace and security." (Posted 8:04 a.m.)

At least 6 dead, 60 missing after sewage pond floods Gaza village

GAZA CITY (CNN) -- At least six people were killed and 60 were missing after a sewage storage pond overflowed Tuesday morning, flooding a Bedouin village in northern Gaza, according to Palestinian medical sources and local residents.

Fifteen homes were submerged in the flooding.

Responding to the scene, the convoy of new Palestinian Authority Interior Minister Hani Talab al-Qawasmi was fired on by gunmen near the village, wounding one of his bodyguards, witnesses said. -- From CNN Jerusalem Bureau Chief Kevin Flower (Posted 7:15 a.m.)

Tamil suicide bombers attack army camp, kill themselves, 5 victims

COLOMBO, Sri Lanka (CNN) -- Two Tamil Tiger suicide bombers riding an explosives-packed tractor detonated outside a Sri Lankan army base in the country's east, after a guard opened fire on them, military sources said.

The suicide bombers killed two soldiers and three civilians, and wounded two soldiers. The bombers also died in the attack.

On Monday, rebels staged a first-ever aerial attack on a Sri Lankan air force base, killing three airmen and wounding 16 others.

The Tamil Tigers have been fighting since 1983 for a separate homeland for the Tamil minority in the north and east, citing decades of discrimination by the majority Sinhalese.

About 65,000 people died before a 2002 cease-fire, which has frayed as fighting between the military and Tamil Tigers has escalated in recent months. --From CNN's Iqbal Athas (Posted 7:13 a.m.)

U.N.: Nearly 5,000 families in southern Afghanistan uprooted by conflict

KANDAHAR (CNN) -- Conflict in southern Afghanistan has displaced nearly 5,000 families in the country's Helmand province, one of the fronts in the grinding war between NATO-led forces and the Taliban.

The Office of the U.N. High Commissioner for Refugees said Afghan authorities have requested assistance to help 3,200 families in Kajaki district and 1,600 families from Musa Qala district.

Last year, the Afghan government said fighting in two Kandahar province districts uprooted an estimated 15,000 families, spurring them to settle in and around Kandahar city.

"Recent reports suggest that most of them have since returned to their home areas," the UNHCR said.

The U.N. agency said on Tuesday it is "concerned" about this latest displacement of people because of fighting.

The World Food Program, UNICEF and the UNHCR are providing food and relief items to the displace people. There are about 130,000 internally displaced people in Afghanistan, mostly in the south. They had been "displaced by previous conflicts and drought before 2002."(Posted 7:12 a.m.)

Najaf mayor's office: U.S. raid on al-Sadr aide's house; 2 dead

BAGHDAD (CNN) -- U.S. troops in the southern Iraqi province of Najaf raided the house of an aide to Shiite cleric Muqtada al-Sadr and the action resulted in the deaths of two civilians, a Najaf city mayoral official told CNN.

The U.S. military told CNN it is looking into the report.

Along with the two dead civilians, three were wounded and two were detained, the office said. (Posted 6:44 a.m.)

2 police officers killed in Baghdad

BAGHDAD (CNN) -- Baghdad police reported the following incidents on Tuesday:

-- At 8 a.m., one police officer was killed and two were wounded when a roadside bomb exploded near their patrol in the Jisser Diyala section of southwestern Baghdad.

-- At 8:15 a.m., a police officer was found shot to death in his car in eastern Baghdad's Zayouna district. Zayouna is a mixed Sunni-Shia neighborhood, but is still considered a hot zone for Sunni insurgents. During Saddam Hussein's regime many high-ranking army officers lived there.

-- Four civilians were killed and 14 wounded when four mortar rounds fell in the Abu Disher section of southern Baghdad. The Shiite enclave is located in the middle of the Sunni-dominated Dora neighborhood. (Posted 2:45 a.m., Updated 4:15 a.m.)

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