The CNN Wire: Monday, Sep. 17

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.

Abizaid: U.S. can 'live with' nuclear-armed Iran

WASHINGTON (CNN) -- The United States and its allies can "live with" a nuclear-armed Iran, but they should continue pressuring the Islamic Republic to keep it from developing an atomic bomb, the former commander of U.S. forces in the Middle East said Monday.

Gen. John Abizaid, who retired from the Army in March after three years leading U.S. Central Command, told a Washington think tank that Iran's leadership is pursing "reckless" policies and seeks to dominate the Middle East. But he added, "I believe the United States, with our great military power, can contain Iran."

"Let's face it -- we lived with a nuclear Soviet Union, we've lived with a nuclear China, and we're living with nuclear powers as well," he told an audience at the Center for Strategic and International Studies.

The U.N. Security Council slapped sanctions on Iran in December after Tehran refused international demands to freeze its production of enriched uranium. While European Union members Britain, France and Germany have led negotiations with Tehran over its nuclear program, French Foreign Minister Bernard Kouchner warned Sunday that Europe must prepare for war if Iran continues to flout the Security Council -- and President Bush has called the prospect of a nuclear-armed Iran "unacceptable." (Posted 9:57 p.m.)

Third man arrested in Simpson robbery case

LAS VEGAS (CNN) -- A third suspect has been arrested in connection with the Las Vegas armed robbery for which NFL star O.J. Simpson now faces felony charges, police announced Monday.

Clarence Stewart, 54, was booked on a total of six counts of robbery, assault, burglary and conspiracy in the Thursday incident at the Palace Station Hotel and Casino, which police said was orchestrated by Simpson. (Posted 9:55 p.m.)

Iraq says Blackwater barred after deadly Baghdad firefight

BAGHDAD (CNN) -- Iraqi officials Monday condemned the weekend killings of eight civilians by American security contractors during a Baghdad street battle and said it would shut down the company involved, which said its employees acted in self-defense.

The U.S. State Department called the killings a "terrible incident" Monday, and Secretary of State Condoleezza Rice called Iraqi Prime Minister Nuri al-Maliki to offer her personal and official regrets, both governments said.

The security firm, North Carolina-based Blackwater, was guarding a State Department convoy when the firefight took place. Iraqi officials said they had barred Blackwater from working in the country after the incident, but company and State Department officials said they had not been notified of any order to that effect.

Sunday's firefight took place about noon (4 a.m. ET) near Nusoor Square, in western Baghdad. Marty Strong, vice president of Blackwater USA, said the group's employees were protecting an American official when they were hit by "a large explosive device, then repeated small-arms fire -- and to the point where it disabled one of the vehicles, and the vehicle had to be towed out of the firefight." (Posted 7:30 p.m.)

DA: Simpson charges could come in 'next few days'

LAS VEGAS (CNN) -- Prosecutors said they anticipate filing charges "within the next few days" against NFL hall of famer O.J. Simpson and other defendants in an alleged armed robbery case.

"While this case is certainly attracting more attention from the media than our other cases, we will treat this case with the same professionalism we afford all the cases we prosecute," Clark County District Attorney David Roger said in a statement issued Monday.

Simpson, 60, who will have his first scheduled court appearance Wednesday after his weekend arrest in connection with a sports-memorabilia heist last week. A judge is scheduled to decide Wednesday decide whether authorities have probable cause to detain him longer. (Posted 7:35 p.m.)

Iran criticizes French minister's warnings of war

TEHRAN, Iran (CNN) -- Iran's foreign ministry criticized France on Monday for a blunt warning over the weekend that Europe must prepare for war if Tehran continues to flout international demands to stop producing nuclear fuel.

"We hope that such statements are superficial and do not reflect France's realistic and strategic points of view," Foreign Ministry spokesman Mohammad-Ali Hosseini said Monday, according to the state-run Islamic Republic News Agency.

French Foreign Minister Bernard Kouchner said in a televised interview Sunday that European nations should consider sanctions outside the U.N. framework if Iran continues to ignore a Security Council call to halt its production of enriched uranium -- and he added, "We must prepare ourselves for the worst."

Asked what "the worst" meant, Kouchner -- co-founder of the the Nobel Prize-winning relief agency Doctors Without Borders -- replied, "That is war, sir." (Posted 6:31 p.m.)

ACLU brief backs senator, says men's room sting can 'trap innocent people'

(CNN) -- The American Civil Liberties Union filed a brief in court Monday calling Sen. Larry Craig's bathroom bust unconstitutional.

The Republican lawmaker was arrested in June at Minneapolis-St. Paul International Airport after a police officer, in a men's bathroom stall next to Craig, alleged that Craig had attempted to solicit sex. Craig pleaded guilty Aug. 8 to one charge of disorderly conduct. When the case came to light earlier this month, Craig announced his intention to resign Sept. 30.

But days later, it was announced that Craig would fight to overturn his conviction and may not resign. Craig filed papers Sept. 10 to withdraw his guilty plea.

The ACLU friend-of-the-court brief was submitted to the Minnesota 4th District Court. (Posted 6:26 p.m.)

Democratic candidates stress health care, middle class before labor union

CHICAGO (CNN) -- Democratic presidential hopefuls Sen. Hillary Clinton, Sen. John Edwards and Sen. Joe Biden all stressed providing universal health care and enlarging the middle class when they spoke Monday to members of the Laborers' International Union of North America at a convention in Chicago.

Before heading to Iowa to unveil her health plan, Clinton spoke to a crowd of about 1,000 laborers, while more viewed a Web simulcast, saying she has been working on her health-care plan for a while now. "When I am president we're going to have quality affordable health care for every single American man, woman and child," she said.

Edwards said people need to stand up to drug companies, insurance companies and their lobbyists in Washington. Edwards, who came out with his universal health-care proposal seven months ago, said he's glad to see Clinton's plan.

Biden also stressed the need for universal health care. "Every major nation we compete with has universal health care or some version of it," he said. --From CNN's Karin Matz (Posted 3:28 p.m.)

Rice offers 'regrets' for Baghdad shootings, Iraq says

BAGHDAD (CNN) -- U.S. Secretary of State Condoleezza Rice has expressed regret for the weekend killings of eight Iraqi civilians by private security contractors guarding a State Department convoy in Baghdad, Prime Minister Nuri al-Maliki's office announced late Monday.

Rice called al-Maliki to offer "her personal and the U.S. administration's regrets" for the shootings, which occurred about noon Sunday near Western Baghdad's Nusoor Square. They agreed to conduct "a fair and transparent investigation into this incident" and punish those responsible, the prime minister's office said. (Posted 3:26 p.m.)

UAW members on job at GM as talks continue

NEW YORK (CNNMoney.com) -- Members of the United Auto Workers union reported to work at General Motors plants Monday morning as negotiators continue to seek a new labor agreement more than two days after their old contract expired.

Bargainers had another marathon negotiating session Sunday night before breaking at about 3 a.m. ET Monday, according to GM spokesman Tom Wickham. Talks resumed late Monday morning. A union spokesman was not available for comment.

The union has not announced a formal extension of the contract with GM, meaning a strike could still start at any time. But the informal hour-to-hour extension at GM has held off any work stoppage at the nation's No. 1 automaker. --By CNNMoney.com's Chris Isidore (Posted 2:52 p.m.)

Simpson to be arraigned in court Wednesday

LAS VEGAS (CNN) -- O.J. Simpson will appear in court Wednesday morning, at which time charges against him will likely be filed, a Las Vegas judge said Monday.

Judge Nancy Oesterle, who is briefing media but will not oversee Simpson's case, said Judge Ann Zimmerman was reviewing paperwork in Simpson's arrest, and will determine whether there is proper cause to detain him.

Within 72 hours of arrest, a judge must see the person arrested, either in courtroom or by video, and Zimmerman does all her arraignments in person, Oesterle said.

Las Vegas Chief Judge Douglas Smith made the initial determination to put a "no-bail hold" on Simpson, meaning bail is not an option for him before Zimmerman makes her decision. Oesterle said someone who spoke with Smith told her two of the factors Oesterle considered were the possibility of flight and that Simpson has "no known ties to the Las Vegas community." (Posted 2:46 p.m.)

Cheney blasts anti-Petraeus ad in GOP fund-raiser

KANSAS CITY, Mo. (CNN) -- Vice President Dick Cheney on Monday waded into the week-old controversy over a newspaper advertisement that criticized the top U.S. commander in Iraq, using a speech at a Republican fund-raiser to call the ad "an outrage."

Republicans have blasted the full-page New York Times ad by the anti-war activist group MoveOn.org, which questioned whether Gen. David Petraeus was "cooking the books" in his report to Congress last week. GOP lawmakers have demanded that Democrats disavow the Sept. 11 ad, which was titled "General Petraeus or General Betray Us?"

"Like most Americans I admire the integrity and the candor that General Petraeus showed in his hearings before Congress," Cheney said during a fund-raiser for Missouri Republican congressman Sam Graves. "The attacks on him by MoveOn.org in ad space provided at subsidized rates in the New York Times last week were an outrage."

The Times said last week that MoveOn.org paid $65,000 for the page -- the normal rate for an advocacy ad from a non-profit group, according to newspaper spokeswoman Catherine Mathis. The newspaper had no additional comment Monday. (Posted 2:37 p.m.)

Hillary Clinton unveils ambitious health plan

DES MOINES, Iowa (CNN) -- Democratic presidential candidate Sen. Hillary Clinton on Monday unveiled an ambitious health plan intended to provide health coverage for all Americans.

"I believe everyone -- every man, woman and child -- should have quality, affordable health care in America," she told supporters at Broadlawns Medical Center, where more than half of patients are uninsured.

"We should do it because it is the right thing to do," she said about her plan, dubbed the American Health Choices Plan.

The Democrat from New York, whose previous attempt at leading a movement to change the health care system foundered in 1994 in the face of opposition from special interest groups, said the problem has only worsened during the intervening years. (Posted 2:20 p.m.)

Obama tells Wall Street 'reappraisal of values' needed

NEW YORK (CNN) -- Democratic presidential candidate Sen. Barack Obama, D-Ill., had a message for Wall Street on Monday while speaking from the NASDAQ Marketsite in Times Square:

Taking a page out of a Franklin Delano Roosevelt speech, he called for a "reappraisal of values," saying that several people on Wall Street have been too focused on their own gains at the expense of struggling Americans.

While addressing members of New York's Executive Council, Obama pointed the finger at Wall Street for being wasteful and for using what he called unethical anti-market practices.

He cited examples of CEOs getting robust severance packages while company employees lose their jobs and pensions, and he spoke of corporate boards that set the price of company stock options, ensuring their own personal gains regardless of how well the company does. --From CNN's Brian Vitagliano (Posted 1:07 p.m.)

Hillary Clinton unveils ambitious health plan

DES MOINES, Iowa (CNN) -- Democratic presidential candidate Sen. Hillary Clinton on Monday unveiled an ambitious health plan intended to provide health coverage for all Americans.

"I believe everyone -- every man, woman and child -- should have quality, affordable health care in America," she told supporters at Broadlawns Medical Center, where more than half of its patient population is uninsured. "We should do it because it is the right thing to do," she said.

America's Health Insurance Plans, a trade group representing insurers, did not immediately return a call seeking comment.

"It's the real McCoy for sure," said Professor Uwe Reinhardt, professor of health economics at Princeton University in an e-mail. "Not a timid plan." (Posted 12:07 p.m.)

Bush announces Mukasey as attorney general nominee

WASHINGTON (CNN) -- President Bush Monday announced that he has chosen former federal judge Michael Mukasey to replace Alberto Gonzales as U.S. attorney general.

Bush said Mukasey (prono: mew-KAY-zee) earned a reputation as "a tough but fair judge" while serving as chief judge of the Southern District of New York, one of the nation's busiest and highest-profile courthouses.

"Throughout his time on the bench, Judge Mukasey was widely admired for his brilliance and his integrity," said Bush, speaking in the White House Rose Garden.

Mukasey said that as attorney general he would "pursue justice by enforcing the law with unswerving fidelity to the Constitution."(Posted 10:50 a.m.)

White House: Bush to announce former judge Mukasey as attorney general nominee

WASHINGTON (CNN) -- President Bush on Monday will announce that he has chosen former federal judge Michael Mukasey to replace Alberto Gonzales as U.S. attorney general, the White House confirmed in a statement.

The formal announcement will take place at 10:30 a.m. in the Rose Garden, White House spokeswoman Emily Lawrimore said. Bush will take no questions following his announcement, she said.

The White House fact sheet on Mukasey said he "will bring to this position a lifetime of legal experience and over 18 years of service as a federal judge." (Posted 10:07 a.m.)

More weapons from Iran captured In Afghanistan, general says

WASHINGTON (CNN) -- NATO forces in western Afghanistan captured a convoy of weapons -- which were shipped from Iran -- earlier this month that could have been made into advanced armor penetrating bombs, according to the top NATO commander in the region.

Until recent weeks, the United States had only acknowledged a handful of weapons from Iran inside Afghanistan.

General Dan McNeil, commander of the International Security Assistance Force, said the weapons were from Iran, but that he could not confirm the Iranian government approved the shipment. (Posted 9:37 a.m.)

Cancer Society ad campaign focuses on uninsured

(CNN) -- Rather than reminding Americans about the dangers of smoking or the need for regular check-ups, the American Cancer Society is devoting its entire 2007 advertising budget of $15 million to highlight the dangers of not having any or enough health insurance.

American Cancer Society CEO John Seffrin described the advertisements -- which begin airing on Monday -- as "unprecedented." The society's previous ad campaigns have urged people to get checked for colon cancer or warned against the dangers of second-hand smoke.

The new push is intended to raise awareness about the millions of Americans who have no health insurance and those who are insured, but find a lot of their medical treatments are not covered. (Posted 9:14 a.m.)

EU court rules against Microsoft, upholds $613 million fine

NEW YORK (CNNMoney.com) -- A European court dealt Microsoft Corp. a severe blow Monday rejecting the company's appeal of a landmark 2004 antitrust ruling and upholding a $613 million fine against the world's largest software maker.

The European Union's Court of First Instance said the EU's antitrust commission ruled correctly against Microsoft when it said the software maker leveraged its dominant position in the market for PC operating systems into work group server operating systems and media players.

European regulators contended that as a result, Microsoft not only thwarted competitors such as RealNetworks, but hindered innovation and ultimately consumers.

As a result of the 2004 ruling, the Redmond, Wash.-based Microsoft was ordered to share information about its operating system with competitors and offer a version of Windows without Windows Media Player. (Posted 7:44 a.m.)

Official: Bush to announce former judge Mukasey as attorney general nominee

WASHINGTON (CNN) -- President Bush Monday will announce that he has chosen former federal judge Michael Mukasey to replace Alberto Gonzales as U.S. attorney general, a senior administration official told CNN.

Two government sources familiar with the president's selection said Sunday that Mukasey would be Bush's nominee, but the White House had refused comment on the report Sunday night.

"Judge Mukasey has a wealth of legal and judicial experience, and has a superb reputation for his fairness, intellect, and dedication to public service," the senior administration official said. (Posted 7:34 a.m.)

Simpson sits in jail following Las Vegas robbery arrest

LAS VEGAS (CNN) -- Hall of Fame running back and onetime murder defendant O.J. Simpson sat in a Las Vegas jail Monday morning following his arrest in connection with a sports-memorabilia heist.

Las Vegas police announced Sunday there would be no bail for Simpson, 60, who will have his first scheduled court appearance Thursday after he was charged with robbery, assault, burglary and conspiracy. No explanation accompanied the decision to deny bail, which was announced in a police statement Sunday night.

Simpson was booked Sunday evening on two counts of robbery with a deadly weapon, two counts of assault with a deadly weapon and one count each of armed burglary and conspiracy to commit burglary, Las Vegas Metropolitan Police Capt. James Dillon told reporters. (Posted 6:50 a.m.)

Suicide attacker in southern Afghanistan targets police; 7 killed

(CNN) -- A suicide attacker on Monday killed at least seven people in southern Afghanistan, Interior Ministry spokesman Zmarai Bashary said.

The incident occurred in the Nad Ali district of Helmand province, a region that has been a major front in the war between NATO forces and the Taliban militant group.

The bomb detonated in front of the entrance gate of the district's chief police officer. Of the seven killed, four were police and three were civilians. Six others were wounded. (Posted 6:50 a.m.)

Clinton to unveil mandatory health care proposal

DES MOINES, Iowa (CNN) -- Democratic presidential candidate Hillary Clinton will roll out a health care reform plan on Monday that would cost the federal government around $110 billion require all Americans to have health insurance, Clinton campaign sources said.

The Clinton proposal will be unveiled during a major health care policy speech in the Hawkeye state.

Under the plan, federal subsidies would be provided for those who are not able to afford insurance and large businesses would be required to provide or help pay for their employees' insurance.

The package would also require insurers to provide coverage for anyone who applies for it, but would also bar insurance companies from charging people with greater health care costs more for their premiums. (Posted 6:49 a.m.)

3 dead, 11 wounded in Baghdad car bombing

BAGHDAD (CNN) -- Three people were killed and 11 were wounded in Baghdad on Monday when a parked car detonated near a Shiite mosque on the edge of a densely populated Shiite neighborhood, an Interior Ministry official told CNN.

The bomb exploded near the Ansar Husseiniya in Jamila after 1 p.m. (Posted 6:24 a.m.)

Iraq's Interior Ministry bans Blackwater ops after contractors linked to civilian deaths

BAGHDAD (CNN) -- Iraq's Interior Ministry has revoked the license of Blackwater, an American security firm whose contractors are blamed for a gun battle on Sunday in western Baghdad that left eight civilians dead.

Blackwater is one of many security firms contracted by the U.S. government during the Iraq war. An estimated 25,000-plus employees of private security firms are working in Iraq, guarding diplomats, reconstruction workers and government officials. As many as 200 are believed to have been killed on the job, according to U.S. congressional reports.

"We have revoked Blackwater's license to operate in Iraq, as of now they are not allowed to operate anywhere in the Republic of Iraq," Interior Ministry spokesman Brig. Gen. Abdul Kareem Khalaf said on Monday. (Posted 6:24 a.m.)

4 Americans killed in Thai airliner crash

PHUKET, Thailand (CNN) -- At least four Americans were killed and one injured in Sunday's plane crash in the resort island of Phuket, a spokeswoman for the U.S. Embassy in Bangkok said.

The identification process is still under way, U.S. Deputy Press Attache Cynthia Brown said. (Posted 6:24 a.m.)

7 killed, 31 detained in coalition raids across Iraq

BAGHDAD (CNN) -- Seven people were killed and 31 were detained on Monday in coalition raids across Iraq, the U.S. military said.

The fatalities occurred west of Yusufiya, southwest of the capital, as coalition forces targeted two buildings used by al Qaeda in Iraq militants, who organize suicide attacks.

Armed men at one building drew weapons as troops approached one building, and the troops "engaged" the two and killed them.

"A number of men from inside the buildings were maneuvering into tactical positions in the surrounding area, indicating they had advance warning of the raid," the military said. "When the assault force followed the men, they encountered four individuals acting as lookouts and passing information to other enemy elements."

The troops called in air support and killed the four, and they killed another who wouldn't surrender when ordered. Nineteen people were detained.

Troops also arrested others in regions north of the capital -- north of Taji, near Balad, in Baiji, and near the Syrian border. (Posted 5:10 a.m.)

Greek voters keep Karamanlis in prime minister's post

ATHENS (CNN) -- Greek Prime Minister Kostas Karamanlis has won re-election, capturing a ringing endorsement for much-needed social and economic reforms despite widespread anger over his handling of a wildfires disaster that left more than 60 people dead and much of the country ravaged.

With nearly all of the votes counted, returns showed Karamanlis, who swept to power in 2004 as Greece's youngest prime minister, winning 43 percent of the poll against 38.4 percent for the rival Panhellenic Socialist Movement, or PASOK.

The conservatives' results correspond to 152 seats in the country's 300-seat parliament -- 13 less that those held by the governing New Democracy party in its previous term.

Even so, a beaming Karamanlis said Sunday's victory was "a strong mandate for a new and dynamic beginning," whipping up a frenzy among fevered crowds that had gathered to celebrate at the conservatives' headquarters in central Athens. (Posted 4:25 a.m.)

Death toll climbs to 88 dead in Thai jetliner crash; 40 known survivors

PHUKET, Thailand (CNN) -- The death toll from a Thai passenger jet crash climbed to 88 Monday as diplomats and investigators converged on the scene of Sunday's deadly crash.

"At this time, the death toll is at 88, and salvaging of the plane is still going on and we expect that this will finish today," said Thai Prime Minister Surayud Chulanont. "Now, the deputy director of the Airports of Thailand and the Minister of Transport are trying to find more dead bodies that may still be within the plane's debris."

Piriya Khempon with Thai Ministry of Foreign Affairs said there are 40 known survivors among the 130 passengers and crew that were aboard the plane, leaving two people unaccounted for.

"We are trying our best to cope with the situation," he said, adding officials from the German, British, French, Israeli and Australia embassies had arrived on a ministry flight overnight. (Posted 3:55 a.m.)

GM, UAW negotiators agree on short break, but not on new contract

(CNN) -- The United Auto Workers union and General Motors failed to reach a new labor contract despite marathon negotiating sessions over the weekend, but both sides did agree to take a break early Monday, according to GM spokeswoman Katie McBride.

All workers will remain on the job as talks are set to resume later Monday morning, McBride said.

GM's contract with the UAW expired after midnight Friday, but the union told its nearly 75,000 GM workers to continue working while negotiations were under way.

If union members were to walk, it could cripple the efforts of the nation's No. 1 to turn around troubled North American operations that have been losing money for nearly three years.

Negotiations are aimed at reaching a new contract seen as crucial to the company's efforts to stem losses and improve its competitiveness with nonunion rivals from Asia and Europe. But analysts said that the automaker could probably weather a short strike. (Posted 3:55 a.m.)

China recalls tainted leukemia drugs; returns tainted pork to U.S., Canadian companies

BEIJING (CNN) -- China has recalled two tainted leukemia drugs tied to "adverse reactions" in patients, the state-run Xinhua news agency reported Sunday.

According to Xinhau, the State Food and Drug Administration and the Ministry of Health suspended the production, sale and usage of methotrexate and cytarabin hydrochloride, produced by Shanghai Hualian Pharmaceutical Co., on Sept. 5.

There is no indication the drugs in question were ever exported outside of China.

On Friday, the two agencies issued a notice saying that vincristine sulfate was the culprit -- an anti-cancer medicine which had been mistakenly mixed with the leukemia drugs, causing leg pains and retention of urine -- Xinhua reported. The factories involved have been closed, while the cause is being investigated. (Posted 2:02 a.m.)

Gore's cable network wins Emmy

LOS ANGELES (CNN) -- First the Oscars, now an Emmy: Current TV, the cable network co-founded by former Vice President Al Gore, was awarded the television academy's top honor for interactive television Sunday night.

Gore, the Democratic Party's 2000 presidential nominee, and Democratic fund-raiser Joel Hyatt launched Current in 2004. The network is built on user-created features and aimed at democratizing the business.

"We are trying to open up the television medium, so viewers can help to make television and join the conversation of democracy and reclaim American democracy by talking about the choices we have to make," he said.

The win follows Gore's March appearance at the Academy Awards, when "An Inconvenient Truth" won the Oscar for best documentary feature. The film, directed by Davis Guggenheim, was based on Gore's lectures on the dangers posed by a changing global climate. (Posted 11:50 p.m.) E-mail to a friend