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LOU DOBBS MONEYLINE

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Aired November 7, 2001 - 18:00   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.
ANNOUNCER: This is LOU DOBBS MONEYLINE for Wednesday, November 7.

Here now, Lou Dobbs.

LOU DOBBS, CNN ANCHOR: Good evening everyone.

Cutting off the Taliban and choking off their money -- tonight, a huge breakthrough in shutting down terrorist funding. Two major financial networks with links to Osama bin Laden have been shut down, some of them in the United States. We'll have the latest for you.

And in Afghanistan, the United States' heavy bombing campaign against the Taliban and al Qaeda network continues. We'll have a live report for you from Taliban-controlled kandahar.

And we'll hear from a Northern Alliance spokesman on the progress of the ground operations.

And for the first time in more than a year, the supersonic Concorde flies again. We'll have a report for you.

And on Wall Street, the Dow Jones Industrials end the day lower, the Nasdaq posts a modest gain, the S&P 500 down three points.

Turning now to the latest developments in the war against terrorism: The Taliban city of Kandahar under intense attack by United States jets today. CNN correspondent Kamal Hyder reported hearing tremendous fire just west of the city. Hyder also saying he's heard what sounded like AC-130 gunships, which are capable of delivering a barrage of deadly fire. We'll be having his live report in just a moment. The Pentagon today saying it's making progress in the war against the Taliban.

(BEGIN VIDEO CLIP)

GENERAL PETER PACE, JOINT CHIEFS VICE CHAIRMAN: We have taken down their air defense systems. We have taken their command-and- control communications equipment. We have disrupted their lines of communications.

(END VIDEO CLIP) The Pentagon says now more than 2,000 sorties have been flown in Afghanistan since the war began one month ago today. In recent days, jets and bombers have focused their attention on supporting opposition forces near the Taliban frontlines. Four of Osama bin Laden's sons were apparently shown playing on the Al Jazeera television network today. One of those sons, heard saying that the capital of Afghanistan will not fall to the U.S.-led military. The boys' identities could not be independently verified.

Heavy U.S. bombing against terrorist targets continues in Kandahar. The city is controlled by the Taliban. And CNN's Kamal Hyder joins us live now with a report from Kandahar.

KAMAL HYDER, CNN CORRESPONDENT: Lou -- witnessed tonight allied bombers attack Kandahar again. This being the second consecutive night that Kandahar's adjoining areas were being targeted. But last night's attack, Wednesday's night's attack, basically being directed against the western part of the city.

For 20 minutes, at a stretch, the bombing and targeting of positions to the west continued as loud explosions shook most part of Kandahar. And, of course, the aircraft humming overhead for almost half an hour to 45 minutes and then continuing into late at night -- Lou.

DOBBS: Kamal, any sense that these were AC-130 gunships? Can you give us some idea of the type of firepower that was arrayed against the targets in Kandahar tonight?

HYDER: Lou, we heard the propeller noise from the engines of these aircraft humming over Kandahar. They were, basically, circling Kandahar quite low, the sound of the engines quite prominent.

Some people have believed that these aircraft, when they come in, they are basically adding cover to other aircraft, which may be operating in the area. With the humming noise low over Afghanistan, they say, that this sound of AC-130s is used, basically, to give cover to choppers or military aircraft flying at high altitude which may be taking part in the action.

We did see some bright flashes of light in the sky and, of course, the explosions on the ground which would, of course, basically mean that they were primarily, probably the AC-130 gunships opening up with their guns -- Lou.

DOBBS: And, Kamal, any -- and I know it's difficult given that it's nightfall there. But, any way in which to assess the effectiveness of those strikes against the Taliban?

HYDER: Well, Lou, it's very difficult to say. I mean, in Kandahar, at this point, you can not go to see the damaged areas or the targets that have been hit until first light. Damage assessment if any, is basically coming at first light.

And, of course, the Taliban being very strict, not allowing, basically, people to see military areas if those are hit. They have, however, been allowing us to go and see civilian damage as in when it happens. They allowed the media to go and see that. But if it's military targets, then of course the authorities there say that it basically concerns national security and they don't allow people to come and see for themselves the damage being caused -- Lou.

DOBBS: Kamal, thank you very much.

And again, it is obvious to our viewers the delay in our communication between Kamal and myself because of the extraordinary distances as we hop across those satellites.

Kamal, thank you very much -- Kamal Hyder from Taliban-controlled Kandahar tonight.

The U.S. air assaults have been helping the efforts of opposition forces in Afghanistan. The Pentagon says the Northern Alliance is now moving closer to the key city of Mazar-e-Sharif.

Haron Amin is a spokesman for the Northern Alliance and joins us tonight from our studios in Washington, D.C. Thank you for being here.

HARON AMIN, SPOKESMAN, NORTHERN ALLIANCE: Thank you, Lou.

DOBBS: Reports that there is some significant advance by the Northern Alliance forces around Mazar-e-Sharif. Can you confirm that?

AMIN: Yes, we can confirm over the last three days we've been able to first capture the district of Zari, then as of yesterday it was Keshenday (ph) and today it is Sholgar, which is very close to -- overlooking -- and is very close to the Mazar-e-Sharif Airport which is to the south of the city.

Certainly, efforts are also underway to make sure, not only the fall of Mazar, but also surrounding provinces, neighboring provinces, -- Fariab to the west, Samangan and Zatapul (ph) to the east of Mazar- e-Sharif.

The important thing here is that once Mazar-e-Sharif falls, it's going to trigger the collapse of additional cities and towns across northern Afghanistan and that's going to tremendously effect the Taliban capability and decimate their strength and military power.

DOBBS: The fact is that the Pentagon has raised the number of sorties by about roughly 30 percent over the last two days. Does this auger a significant effort by the Northern Alliance and its ground troops to advance on these cities?

AMIN: Yes, the important thing is that the military campaign, having started about a month ago, and the last phase that -- maybe seven days or so -- has been the most effective, particularly the air raids.

And the important thing in this context is that it's going to pave the ground for our troops who are, as we speak, are being supplied to make the move on the ground. And that's going to be happening, hopefully, throughout the next couple of weeks or few weeks, you know, throughout the holy month of Ramadan. So I think it's very important that the air raids continue at least for now so that we can actually do the job on the ground.

DOBBS: Those air assaults, the Pentagon says, the White House says will continue through Ramadan and that the pressure will continue to be applied against the Taliban's forward positions.

Does the Northern Alliance have sufficient supplies, sufficient training -- I know that the special forces, the number of the U.S. special forces have been doubled recently to help an air strike coordination and to help in the assault by the Northern Alliance, particularly around Mazar-e-Sharif.

Is there a sufficient a supply line, a sufficient number of troops in the Northern Alliance to achieve the goals?

AMIN: I think that the numbers that we have are certainly very significant. And I think it's sufficient in addressing onslaughts on to the Taliban.

The strength of the Taliban is not so much derived from them being a capable, competent force. It's much more the al Qaeda which spearheads operations as well as militants from across the region including Pakistan, which by the way, even as of now as we speak, is still providing supplies to the Taliban as well as sending people -- thousands -- into the war in Afghanistan.

So, in terms of supplies, we can tell you that the amount that we are receiving right now, it is sufficient in addressing the immediate progress on the ground. But in the long term, I think that much more is going to be needed. And I think that the international coalition is looking into that and hopefully over the next few weeks or so, I would say that that would be addressed in a very sufficient fashion. And we hope that the campaign will continue so that the Taliban would not have the opportunity to be able to regroup or do anything of that nature to spearhead counter-offenses.

DOBBS: Haron, you mentioned the Pakistanis crossing into Afghanistan with more supplies, more troops. What can be done to stop that?

AMIN: I think it's very clear. I think that being duplicitous and this -- Pakistan can not afford, given that it is feeling threats inside Pakistan. I would say that the presence of the international coalition, the promise by Pakistan needs to be much more magnanimous in this context. And certainly, I would have to say that the United States can put, exert pressure on Pakistan to abide by the desire of the international coalition and to strengthen its position as a member of this coalition so that the mistake that happened in Afghanistan, with the help of the former resolve by the Pakistanis, would not be repeated once again, to also not only safeguard Afghanistan, but at the same time, to safeguard Pakistani integrity and sovereignty for the sake of Pakistan.

DOBBS: Haron, thank you very much -- Haron Amin, thank you for being here.

AMIN: Thank you.

DOBBS: Osama bin Laden's money supply took a big hit today. Two major financial networks with terrorist links were shut down in raids conducted in both this country and abroad.

Allan Dodds Frank with the report.

(BEGIN VIDEOTAPE)

ALLAN DODDS FRANK, CNN CORRESPONDENT (voice-over): From a suburb of Boston to Seattle, Washington, U.S. law enforcement agents swooped in on offices of a global money transfer outfit called Al-Barakaat. The president said those companies, and another group of overseas financial companies called al Taqwa, supplied tens of millions of dollars to Osama bin Laden's terrorist organization.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: They manage, invest and distribute those funds. They provide terrorist supporters with Internet service, secure telephone communications and other ways of sending messages and sharing information. They even arrange for the shipment of weapons.

FRANK: The raids in five states targeted eight offices of Al- Barakaat which, according to a criminal complaint filed against two of its officers, moved more than $2 million this year and has operations in 40 countries. Using accounts at Citizens Bank in Boston and Key Bank in Portland, Maine, Al-Barakaat wire-transferred several million dollars back and forth from a headquarters office in Dubai.

JOHN ASHCROFT, ATTORNEY GENERAL: Today we have shut down several financial networks exploited by terrorist groups. Piece by piece, we are dismantling the infrastructure of the terrorist network.

FRANK: The government action was part of a freeze placed on 62 companies and individuals by the United States and its allies. The second group, al Taqwa, specializes in offshore banking and has no known operations in the United States.

PAUL O'NEILL, TREASURY SECRETARY: The al Taqwa group have long acted as financial adviser to al Qaeda with offices in Switzerland, Liechtenstein, Italy and the Caribbean. The Al-Barakaat companies are the money movers, if you will, the quarter masters of terror.

(END VIDEOTAPE)

FRANK: The Treasury secretary says the crackdown is just the beginning of unraveling the terrorists' financial webs. And with more than 1,000 bank accounts under review, there almost certainly will be more additions to the terrorist lists and more raids in the days ahead -- Lou.

DOBBS: Both of these networks built around the so-called Hawalas. How significant is this within the broader scheme of things? FRANK: This is a very big deal because it will give them countless leads -- the investigators, countless leads into one: how the system works, and two: who was on the receiving end.

DOBBS: It also suggests a get-tough attitude with these organizations. Are we also moving to a point where suddenly there won't be these wire transfers and less going through U.S. commercial banks or the banking system?

FRANK: I think so. It will be much more difficult for these organizations to do that. Dubai, for instance, which is a major center, participated in this crackdown and it froze all the Al- Barakaat accounts.

DOBBS: Well that is, in itself, significant progress.

Allan, thank you -- Allan Dodds Frank.

Well, Prime Minister Tony Blair has been a key player in the war against terrorism. The prime minister is, tonight, at the White House meeting with President Bush.

John King is there and has more for us -- John.

JOHN KING, CNN WHITE HOUSE CORRESPONDENT: And, Lou, that financial operation, that crackdown, one of the many items being discussed at a dinner now in the White House residence behind me between President Bush and Prime Minister Blair of Great Britain.

The two leaders also discussing not only the ongoing military campaign, but the prime minister wants to talk in more detail about what a post-Taliban Afghanistan might look like, including a United Nations role in nation building and the possibility, we are told by British officials, of some multi-national force, a peacekeeping transitional force, if you will, that would go in after the current bombing campaign.

Now some might say those discussions -- premature because, of course, as you've been reporting tonight, the bombing campaign continues. The United States increasingly trying to help those frontline Northern Alliance troops against the Taliban forces.

The president, asked about this at a brief news conference with Prime Minister Blair. And the president said from the very beginning, he told the American people this campaign, just phase one in Afghanistan, would take several months if not even longer.

(BEGIN VIDEO CLIP)

BUSH: I told the American people many times and I've told the press corps many times that this is a struggle that is going to take a while, that it's not one of these Kodak moments. There's no moment to this. This is a long struggle in a different kind of war. But we're patient and our close friends are patient, which is bad news for the Taliban and the people they harbor.

(END VIDEO CLIP)

KING: An appeal for patience as well from the British prime minister. Polls here in the United States continue to show very high public support for the campaign, but there has been some dip in that support in polls across Europe, including Great Britain, France and Germany.

Still, Prime Minister Blair saying that he is convinced the international coalition is perhaps even stronger now than it was in the days immediately following the September 11 attacks.

(BEGIN VIDEO CLIP)

TONY BLAIR, PRIME MINISTER, GREAT BRITAIN: The determination to see that justice is done, is every bit as strong today as it was on September the 11th. The cause is just, the strategy is there, the determination is there and there is a complete and total commitment to making sure that this is a battle in which we will prevail.

(END VIDEO CLIP)

KING: Both leaders voicing some frustration that their personal efforts and the efforts of their governments to try to broker some calming of the tensions between the Israelis and the Palestinians have been unsuccessful. But both leaders, Lou, also defiantly making clear that they make no connection between the Arab-Israeli conflict and the continuing campaign in Afghanistan. The prime minister saying he believes Osama bin Laden is trying to -- quote -- "hijack the Palestinian cause." He said he will be unsuccessful and that the military campaign as well as the diplomatic and financial efforts will continue -- Lou.

DOBBS: John, thank you very much -- John King reporting from the White House.

Well still ahead here, we'll tell you how biotechnology companies are now gearing up to join the battle against bioterrorism. And we'll tell you how some investors are cashing in.

Also, we'll be telling you what's happening to foreign workers who came to the United States on special visas, but now find themselves out of work and perhaps soon on their way back to their countries.

Also, more than a year after the entire fleet was grounded, the supersonic Concorde is back in the air. We'll have the latest for you.

And a former cabinet member will be here to tell us what effect America's new war is having on economies all around the world.

ANNOUNCER: After the break, Lou is joined by chairman and CEO of the Cohen Group, William Cohen.

(COMMERCIAL BREAK) DOBBS: Half of the $85 million Twin Towers fund will soon be in the hands of those who need it. New York Mayor Rudolph Giuliani promising that that money will be sent out within the next 10 days. Now that money is earmarked for the families of police, firefighters and emergency services personnel who were killed in the September 11 terrorist attacks against the United States.

(BEGIN VIDEO CLIP)

MAYOR RUDOLPH GIULIANI (R), NEW YORK: I want to emphasize the fact that every single penny will go to the families of Port Authority, NYPD and fire department. And as far as administrative costs are concerned, we're going to try and see if we can raise money separately for that so that people who have given money to get to firefighters and police officers will know that the money got to firefighters and police officers.

(END VIDEO CLIP)

DOBBS: By the mayor's estimates, each family could receive as much as $100,000.

Now, for the latest developments on the anthrax attacks, New York City health officials say anthrax has been discovered in the second- floor mail room of ABC News Network. Two spots were found. Both have been decontaminated.

FBI agents are beginning to focus their attention now on laboratories with access to anthrax. Homeland Security Chief Tom Ridge says investigators will pursue leads to try to identify the origin of the bacteria. Ridge says it's still not known whether the anthrax attacks are the work of domestic criminals or overseas terrorists.

Tons of mail from a processing facility in Hamilton, New Jersey will be transported to an off-site facility this week for irradiation. Several letters that passed through the mail facility did contain traces of anthrax.

Fears of bioterrorism have made biotech companies hot again. The industry expected to benefit from a wave of government defense spending.

Casey Wian reports from San Diego, California.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): This device resembling a beefed-up personal computer may become one of the newest weapons in the war against bioterrorism. It analyzes DNA on the head of a microchip.

KIERAN GALLAHUF, PRESIDENT, NANOGEN: The application in bioterrorism is the ability to detect the presence of certain organisms. And by using a microchip, you can potentially speed that application. You can also potentially look for multiple organisms at the same time, because you may not know what you're looking for.

WIAN: Nanogen says its machine can perform accurate tests that now take three hours in 16 seconds. It's working on portable models for military and other government uses.

Another San Diego area company, Ibis Therapeutics, is developing both sensors to detect and drugs to treat infectious diseases.

DAVID ECKER, PRESIDENT, IBIS THERAPEUTICS: It's very apparent to us and very apparent to the government that there is an extraordinary sense of urgency to advance the technology faster.

WIAN: Stocks of companies working on bioterrorism defense have rallied in recent weeks, even though government spending remains modest. The biggest chunk, $140 million this year, comes from the Defense Advanced Research Projects Agency. Previous DARPA research led to the creation of the Internet.

(on camera): DARPA says it has not requested or received additional money for biotech research since the September 11th terrorist attacks or the anthrax outbreaks that have followed. But the industry is expecting more money soon.

UNIDENTIFIED MALE: The companies have been getting small seed grants from the government at this point, probably as a first step of a multi-layer or multi-part transaction that will happen in the future. It's usually the way that it works.

WIAN: In California, many biotech companies are preparing for the future by hiring. The state was expected to add 70,000 bio-tech jobs this decade, even before September 11th.

Casey Wian, CNN Financial News, San Diego, California.

(END VIDEOTAPE)

DOBBS: Well, now for more on America's new war, we're joined by former Defense Secretary William Cohen. Bill Cohen has just landed, in point of fact, from a whirlwind trip from Asia to South America back to this country.

Welcome back.

WILLIAM COHEN, FORMER SECRETARY OF DEFENSE: Good to be back.

COHEN: Obviously, the relationship between this war against terrorism and the economic condition indeed of the world all very much interrelated. What is your sense of its effects so far in Asia?

COHEN: Well, in virtually every country I visited, from Brazil all the way to Northeast and Southeast Asia, every economy is suffering. As we've discussed on this program before, when America is wounded, the rest of the world bleeds. And many of them are bleeding right now economically, looking to America, and our economy, of course, in a downturn. And until it starts to have an upturn, it's going to have considerable implication for the rest of the world economy.

DOBBS: And in the attitude toward the war against terrorism with the government leaders and business leaders you met with?

COHEN: All are supportive. All recognize that this war, this campaign has no boundaries. There are no geographical limitations to it. So they are all committed to helping the United States in this effort. We've seen that just recently with Germany, Spain, Italy, France, obviously Great Britain and others now prepared to commit troops to the region as well. That's a very positive sign.

DOBBS: And obviously, you think it's an appropriate and timely edition to the manpower that's being arrayed in Afghanistan.

COHEN: Well, two very significant things taking place. Germany 10 years ago never would have considered the possibility of putting troops out of country into this environment. Japan will be sending ships to the region. So, that's a major change in the geopolitical landscape in recent days.

DOBBS: And their military, the Japanese military, the -- the defense agency taking, for the first time, an aggressive defensive posture, if you will, against terrorism by moving those ships there.

COHEN: Surprising a Japanese Diet passed anti-terrorism legislation just in the last few days by rather significant amounts. And that's a very significant shift for us -- shift on their part, and important for us to look to.

DOBBS: You just stepped off an airplane. Your successor in the job, Donald Rumsfeld -- for his benefit I'll put it this way; you may not like it -- somewhat older than you. Now, the most-travelled member of the administration. What do you think of the job he's doing?

COHEN: Oh, I think he's doing a great job. And that's part of the territory as well. I traveled some 800,000 miles in four years in that position, and I hope he doesn't have to travel quite as much. But it looks like he's on the road to doing that.

DOBBS: OK. Bill Cohen, thank you very much. Welcome back.

Coming up next, we will have the latest for you on the war against terrorism. Also, a hearing dealing with international airline alliances turning into a battle about airline security. We'll be heading to Washington, D.C. for that story for you.

Celebrities, business leaders, our own Richard Quest aboard the Concorde, its first commercial flight in more than a year, a move many hope will boost the suffering airline industry worldwide.

And escaping everyday stress with a good movie, or even a not-so- good one, or just having fun. We'll take a look at the recent surge in movie attendance when MONEYLINE continues. Stay with us.

(COMMERCIAL BREAK) DOBBS: In the latest developments in the war against terrorism, President Bush and British Prime Minister Tony Blair offering assurances this evening of victory in the war against terrorism. Earlier, President Bush announced new steps to cut off terrorist funds, freezing the assets of 62 individuals and financial organizations.

Meanwhile, the United States military is keeping up the pressure on the Taliban military machine, bombing the city -- targets in the city of Kandahar. The Pentagon says it is making progress helping the opposition Northern Alliance fighters against the Taliban forces.

Health officials today said anthrax has been found in a second- floor mailroom at ABC News in New York City. ABC says two out of 126 samples taken tested positive for anthrax. A producer's 8-month-old baby contracted skin anthrax more than a month ago. The baby's health continues to improve.

Homeland security chief Tom Ridge says FBI agents have begun to focus on laboratories with access to anthrax. Ridge says they still don't know whether the bacteria is the work of domestic or overseas terrorists. Ridge says the country is still on a state of alert and will remain so indefinitely.

A Washington, D.C. postal worker who died of inhalation anthrax made a 911 call just hours before his death last month. Thomas Morris Jr. requested an ambulance and he described his symptoms to the dispatcher. Morris was one of two D.C. mail workers who died from inhalation anthrax. Two others remain hospitalized.

Well, there was supposed to be a Senate hearing on international airline alliances, but members of the subcommittee on antitrust had a different agenda today, airline security.

Tim O'Brien with the report.

(BEGIN VIDEOTAPE)

TIM O'BRIEN, CNN CORRESPONDENT (voice-over): Although the hearing was called to discuss airline alliances, senators made it clear from the outset they were much more troubled by airport security.

SEN. HERB KOHL (D), WISCONSIN: With the system that we now have operating in this country, on a given day, a group of saboteurs could load up 12 different airplanes across the country with explosives, go home and we would have a disaster.

O'BRIEN: When senators suggested the airlines match all checked bags with passengers who boarded the plane, as they do in Europe, the CEO of Northwest got defensive.

RICHARD ANDERSON, CEO, NORTHWEST AIRLINES: European airlines are much smaller and they run relatively few banks.

SEN. MIKE DEWINE (R), OHIO: I'm not sure it's acceptable to the American people for you to say, "Well, they can do it in Europe because there just aren't as many people they're dealing with." That's just not an acceptable answer.

O'BRIEN: The CEO of American Airlines said his airline could match checked bags to passengers, but it would mean fewer flights and longer delays.

DONALD CARTY, CHAIRMAN, CEO, AMERICAN AIRLINES: We don't know how to do it and keep the airlines looking like they look.

KOHL: You have to be able to assure your customers that you have a system in place functioning, that prevents people from loading explosives on your plane. Now guys, you know that's true.

DEWINE: I think that one of the things that all of us have to do is just to recognize that in the past eight weeks, we have remade the security system in aviation in America.

O'BRIEN: Everyone agreed the airlines had made important safety improvements, but to the senators, not nearly enough.

(END VIDEOTAPE)

(on camera): Several lawmakers were distressed that only about five percent of the luggage checked at U.S. airports is ever inspected for explosives. Now the airlines have agreed to install new devices that would be able to check every bag, but under the current timetable, that new system would not become fully operational until the year 2017 -- Lou.

DOBBS: Something more timely on the agenda there, Tim in terms of...

O'BRIEN: Well, I think that timetable was drawn up before September 11. And I think it's going to be accelerated. There was also a concern about the money, but with 650 million passengers traveling every year, it would add up to about $1.00 a ticket.

DOBBS: And Leo Mullin of Delta saying that they have remade the airline security system in eight weeks. Was he at all challenged by anyone in that hearing?

O'BRIEN: No, not really. They did say the progress has been impressive, but the airlines have to do a lot more. And there didn't seem to be any disagreement about that. They all did agree that more needs to be done and they're prepared to do more.

DOBBS: OK, Tim O'Brien, thank you very much. Tim O'Brien from Washington.

Good news for the otherwise faltering airline industry tonight. The world's fastest passenger jet is back in service. The Concorde grounded for more than a year after a crash that killed 113 people. Today's flight viewed as a vote of confidence for the entire industry.

Richard Quest, a passenger today, but he still took along a camera and a notebook.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN CORRESPONDENT (voice-over): 15 months of planning and millions of dollars have been spent. This was the result, the first commercial Concorde flight since the crash in Paris last year.

For British Airways, flying Concorde again was a priority. The rich and famous pay $6,000 to cross the Atlantic.

(on camera): For British Airways, beset by financial doom and gloom, getting the Concorde service back in the air was important. Not only because it makes a profit, but it also sends a message to London and New York that business is getting back to normal.

(voice-over): So today's flight was also about showing support for a city and an industry in trouble. The good wishes flowed like the champagne.

UNIDENTIFIED MALE: I've used it for 20 years. Countless, I've forgotten how many times I've used it, but (INAUDIBLE), it really is.

QUEST: Concorde's chief captain has made the journey more than 4,000 times. But today's trip was the most important.

MIKE RANNISTER, CONCORDE CAPTAIN: It's wonderful to hear the good wishes from air traffic control and other pilots. And even as we rolled down the runway, an American pilot, Paul Gaulfinger, it's wonderful to see the really, good strong will that is at the London end. And we're anticipating a very, very warm welcome in New York.

QUEST: And when we arrived, a warm welcome from New York's Mayor Rudy Giuliani. He said he's always wanted to fly on the plane nicknamed "the rocket." He also had an important message.

GIULIANI: And I have to ask you to do one very a special favor for me while you're here. Spend a lot of money.

(END VIDEOTAPE)

QUEST: There is no doubt the Concorde is a vintage plane, an antique. It's more than 20-years-old. But as they say in the motor industry, the planes only had one careful owner and it's now been lovingly restored -- Lou.

DOBBS: And it is nice to see it back in the air. The passengers, today, you focused there on (INAUDIBLE) for a while. Very impressive, Richard, that you're traveling in such company. But what is there sense how long it will take to get back to a normal level of traffic aboard the Concorde?

QUEST: Oh, almost immediately. The people who travel Concorde regularly are simply delighted that it's back. It may cost $10,000 dollars to go backwards and forwards across the Atlantic, but if you're signing a deal for a $100 million, well you know, that's sort of...

DOBBS: Cost effective?

QUEST: Well, it's small change, really, isn't it? The rounding error on the deal.

DOBBS: Well, let me help you out. Richard Quest, as I'm sure most of you know, is our correspondent based in London. And the trip cost how much?

QUEST: $12,000.

DOBBS: In these kind of times, I think it might be wise for you to consider being a New York based correspondent.

QUEST: Absolutely. Where's my wallet?

DOBBS: Richard, thanks. Richard Quest.

Well, after six months of sliding profits, the movie industry could be in for a turnaround. Attendance has been soaring lately. And even mediocre movies are doing well. But economic hardship and times of war generally send Americans to the theater. And it seems as this time is no different.

Kitty Pilgrim with the story.

(BEGIN VIDEOTAPE)

KITTY PILGIRM, CNN CORRESPONDENT (voice-over): This past weekend, movie attendance was up 41 percent over the same time last year. Some of that business was due to the box office behemoth "Monsters," but some suggest America is finding a simple trip to the movies, a great escape.

MARTIN GROVE, "HOLLYWOOD REPORTER": They have to do something. They want to get out of the house. And whatever the price of a movie ticket is, whether it's $8 to $10 today, whether it was 25 cents a ticket back in the Depression, it still is cheap entertainment compared to everything else.

PILGRIM: History proves the point. From the glamour and glitz of Nick and Nora Charles in "The Thin Man" series at the height of the Depression, to the high escapism of Fred Astaire in "Top Hat." During World War II, the grinding news of war, broken up by patriotic movies like "The Fighting Sullivans."

Analysts say look to 20th Century Fox's "Behind Enemy Lines" for a new dose of patriotism. Or "Harry Potter" for fantasy. The combination of themes which reflect society and fantasy, a typical mix in challenging times.

RICHARD SKLAR, TISCH SCHOOL OF THE ARTS: The depression had two kinds of really popular films. One of them was the gangster and crime film, which you know, dealt with actual problems in society. And the other was the musical, which was kind of a fantasy, escapist story. PILGRIM: Some themes are just too sensitive. The movie "Collateral Damage" was moved to sometime next year, because it involves a terrorist plot. And the film "Bad Company," which was postponed because of a plot with a nuclear bomb on a plane.

(END VIDEOTAPE)

Now no matter how much people are going to the movies, the news will still get their primary attention. The weekend the original anthrax news was claiming national attention, it was a disappointing time at the box office because many people chose to say home that particular weekend -- Lou.

DOBBS: And how much is attendance up?

PILGRIM: 41 percent last weekend. People are really flocking to the movies for entertainment.

DOBBS: Terrific, all right. Kitty, thank you.

Coming up next, victims of a slowing economy, many unemployed immigrants here on special work visas find themselves not only unemployed, but now targeted for deportation. We'll have the latest for you. Some of this nation's top executives are meeting in New York City. The host of the conference tells us what's troubling America's chief executive officers next here on MONEYLINE.

ANNOUNCER: Coming up, Lou speaks with "Fortune" managing editor and regular MONEYLINE contributor, Rik Kirkland.

(COMMERCIAL BREAK)

DOBBS: Since September 11, President Bush has made it clear that visa violators will be tracked down in this country, putting unemployed H-1B visa holders in jeopardy of being deported.

Fred Katayama reports.

(BEGIN VIDEOTAPE)

FRED KATAYAMA, CNN CORRESPONDENT (voice-over): High tech companies couldn't hire enough skilled foreign workers during the dotcom boom, but now many are laying off holders of the so-called H-1B visa as the economy slows further.

And following the terrorist attacks, Congress' focus has moved to economic and national security. So the half million H-1Bs and their employers could face tighter scrutiny.

Colorado Congressman Tom Pancretto has proposed rolling back H-1B admissions to 65,000 from the current cap of 195,000. And cutting that back further if the jobless rate rises. He argues American workers should get preference in hiring. Immigration backers say that would hurt the U.S. economy, because it would force companies to move work overseas. Missouri Senator Christopher Bond wants employers who lay off H- 1B workers, to immediately notify immigration authorities, a step some employers ignore or risk a stiff penalty. SEN CHRISTOPHER BOND (R), MISSOURI: This does not make it foolproof, but it's the best check we have, to make sure we know that people who come into the United States for a specific purpose don't stay here for other purposes.

KATAYAMA: None of the attackers involved in the World Trade Center attacks was an H-1B visa holder, but immigration critics say some would have made good candidates because they were highly skilled.

UNIDENTIFIED MALE: Immigration control is indivisible. You can't tighten up on one element of immigration control or the immigration system, without fixing it overall because a potential terrorist or other kind of bad guy will simply probe for weaknesses.

KATAYAMA : Many laid off H-1B workers don't go home. They pump gas, work at stores and perform odd jobs while they look for new, high tech jobs.

(END VIDEOTAPE)

But so far, the Immigration and Naturalization Service has no plans to reform its H-1B program. It still has no policy on how long H-1B holders can stay once they've become jobless. It's considering offering a 60 day grace period to give laid off workers time to find another job or pack up and go home -- Lou.

DOBBS: 60 days. Now would that be until they are deported, is that the idea?

KATAYAMA: No, it's to give them time, basically, to find jobs. They won't be deported, really, unless they run afoul of the law because they're doing nothing to enforce them.

DOBBS: So even though they are not employed here, which is the basis of their visa, they wouldn't be deported or given citizenship, either one?

KATAYAMA: Unless someone really turns them in.

DOBBS: For what? OK.

(LAUGHTER)

It sounds like the INS has something to solve.

KATAYAMA: Some work to do.

DOBBS: All right, Fred, thanks a lot.

CEOs from some of the biggest companies in the country gathered in New York today, a conference on leadership. The events, hosted by "Fortune" magazine, designed to help business leaders deal with current challenges and to keep their companies and the economy moving.

Kathleen Hays at the conference today. And she is taking time today to join us now -- Kathleen.

KATHLEEN HAYS, CNN CORRESPONDENT: It's a great conference. People were so excited about meeting all these CEOs. And just the fact people were willing to gather in New York they thought was a very significant and a real boost to their morale and the country's morale.

Jeff Immelt was chairman and CEO of GE for just a couple of days officially when the September 11 attacks hit. I spoke to Jeff today. He tore himself away from the conference. And he said, yes, they were hit hard in the insurance, aircraft orders, broadcast, but they are bouncing back. He insists GE is still a growth company, but he says the next few months will be tough going.

(BEGIN VIDEO CLIP)

JEFF IMMELT, CEO, GE: When we're doing business planning for next year, we're assuming that 2002 is going to be another tough year. But we've been wrestling with tough -- we saw it in August of 2000. So we've been preparing for that. And when we look at 2002, we think they're going to be a year that's more less like 2001, a very tough level.

(END VIDEO CLIP)

HAYS: Jeff still promises double digit growth at GE. Gordon Bethune says his company, Continental Airlines, even though aided by federal money, won't return to profitability until the economy picks up. But he squashed speculation that his company is a merger candidate.

(BEGIN VIDEO CLIP)

GORDON BETHUNE, CEO, CONTINENTAL AIRLINES: We were one of two airlines that were profitable up until that time. And some of the things that we did different than others, that were going to hold us in good stead coming out the other side.

So we looked to be innocent and independent, and I think, regain our strength. I don't think that'll, you know, unless something else happens dramatically that we can't foretell. The other people who are in trouble were in trouble prior to 9/11. And the marketplace will shake out, as it always has

(END VIDEO CLIP)

HAYS: Michael Dell, head of leading PC maker, Dell, said their orders came back pretty quickly after September 11. The attacks didn't effect core business. He was actually more worried about his people morale than anything else. As for what's going to drive his business now, he had some interesting comments on the HP/Compaq merger.

(BEGIN VIDEO CLIP) MICHAEL DELL, CEO, DELL: The history of combinations in our industry is not particularly good. You know, if you go back to, you know, Sperion-Burros and you know, Compaq and Tandem, and Compaq and Digital, you don't have a lot of successes. In fact, no industry leader has been created through combinations in our industry.

(END VIDEO CLIP)

HAYS: So a lot of -- actually, a lot of positive comments, Lou, despite what's been happening, I think, everyone's looking ahead and focusing on rallying their troops.

DOBBS: Rallying their troops. And earnings are going to go right through the roof this quarter, right?

HAYS: Well, I didn't exactly say that. But I think they all believe in their own prospects. And I think you had a lot of really strong CEOs there who think they've got what it takes to lead their companies and their people forward.

DOBBS: Thanks. To this point, they've certainly demonstrated that. All right. Thanks, Kathleen Hays.

Well, we're going to learn a little more about the conference and how those business leaders are dealing with this economy climate we're in. We're joined by "Fortune's" managing editor, Rik Kirkland.

Rik, the conference on innovative leadership. How's it going?

RIK KIRKLAND, CNN CORRESPONDENT: It's going great, Lou. We've had a great day. You know, we just did a cover story in "Fortune" on leading on a crisis called "What it takes." And it's been very gratifying to see how many of those themes have been echoed by the CEOs here.

And I think one of the key things that they stressed is how important it is now to stand up and be seen. Jeff Immelt, who you just spoke to, talked about the need right now to get out and give the human touch, to see whether it's with employees or your customers. Michael dell talked about the same thing.

DOBBS: I think we ought to point out something. I just thought of it when Kathleen was talking about it, too.

Immelt and GE should be given great credit for being the first to step up with that $10 million. They're the ones who really starting corporate contributions on behalf of the families, the victims of September 11.

KIRKLAND: That's absolutely right, Lou. In fact, again, that is one of the themes that a lot of employees of these large companies needed, was to see their companies engaging with this in a way to speak to people's emotional needs. Michael Dell talked about that.

And that kind of contribution is important, now more than ever. DOBBS: What is the sense there? Kathleen, you heard, talking about -- with Jeff Immelt, looking for a tough 2002. Is that view generally shared by most of the CEOs there?

KIRKLAND: Yes, yes, it was a pretty broad consensus. You know, one of the other things that we talk about, that leaders have to do now is display brutal optimism. And what that means is you can't tell people it's going to be easy. You have to be optimistic about the long-term. But most of the business guys see a very tough year ahead, which is a little bit different from the view on Wall Street. I think they're taking a page from an old Mel Brooks song. You know, hope for the best, expect the worst. And then you can surprise on the upside.

DOBBS: Yes, are there any particular stories of a CEO who has step up there? Was there anything that comes to mind?

KIRKLAND: No, just a general sense that we need to be out there, we need to be telling the country that it's not going to be easy. Telling employees that we have what it takes in America, in New York City, in American business to get through this and survive and triumph in the long run. That's an important message.

DOBBS: Is Phil Condit there? Is Phil Condit at the meeting?

KIRKLAND: No, he's not here, Lou.

DOBBS: You know, we should point out Phil Condit did that in the face-off, if you will, the bidding with Lockheed Martin. Lockheed Martin wasn't going to join us on the air if they lost. Phil Condit said we'll be here whether we win or lose in a very circumstance. And obviously having lost, he stepped right up. A stand up guy.

KIRKLAND: Exactly.

DOBBS: Rik Kirkland, we thank you for being with us here on MONEYLINE.

KIRKLAND: Thanks a lot.

DOBBS: Have a good conference.

KIRKLAND: All right, thanks a lot.

DOBBS: Coming up next, my interview with the president of the American Red Cross struck a nerve and a lot of you just plain don't like her. We'll tell you about that in just a minute. Stocks unable to build on yesterday's solid rally. We'll have a check of the markets next on MONEYLINE.

(COMMERCIAL BREAK)

DOBBS: On Wall Street today, blue chips finished the day modestly lower. The Dow slipping 36 points, after a 500 point run up over the past four sessions. Time for a little bit of a breather, I guess. The Nasdaq edging higher. Technology issues struggled to hold onto their early gains. Now let's turn to Christine Romans at the New York Exchange, Greg Clarkin at the Nasdaq marketsite, as is our want every night -- Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: Well, Lou, the stock market really meandered today, but there was a lot of deal talk in the works here today. Take a look at some of these who were effected. Hewlett- Packard, dragging on the Dow again today. Now we have members of both the Hewlett and the Packard families voicing their displeasure with the pending merger of Hewlett-Packard and Compaq.

And Enron, sliding to a 10-year low, with its woes mounting. But late in the day, it cut its losses on reports that its rival, Dynegy, is in talks to infuse maybe $2 billion into that energy trader. Maybe the first step for a deal there. All those stocks ending lower, but not just recession in the Fed we're talking about on Wall Street anymore, Lou.

DOBBS: And volume today?

ROMANS: Volume better, 1.4 billion shares.

DOBBS: OK. Greg Clarkin?

GREG CLARKIN, CNN CORRESPONDENT: Lou, I tell you the Nasdaq adds two points today. Fairly quiet day of trading. Now the big caps, for the most part, added to their recent run up. Take a look at this screen. Look at the big caps, what they've done since October 1, where they closed today. You see some big jumps there. Sun is up better than 50 percent. Cisco from a less than $12, to up to almost $19 in that span. So these stocks continue to make gains. For the most part, they added on to that today.

But what we saw was a real cautious tone to trading. After all, the Nasdaq is up about 29 percent since those September 21 lows.

Lou?

DOBBS: That's pretty good for a two point gain on the day, Greg, thanks. Greg Clarkin.

"WOLF BLITZER REPORTS" will begin in just a few minutes. Let's go to Wolf now in Washington. Wolf?

WOLF BLITZER, CNN ANCHOR: Thank you, Lou. It's been a month since the start of the U.S.-led air strikes. Are things going as smoothly as President Bush insists? And can he keep the coalition together? We'll get three very different perspectives here in the CNN war room.

A Pakistani with close ties to President Musharraf, a congressman who recently met with Afghanistan's exiled king, and a specialist who has studied the region for years. That and much more next -- Lou.

DOBBS: Wolf, thank you very much. Coming up next here, your support and criticism of the American Red Cross. And we'll take a look at what to expect tomorrow. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Tomorrow, we'll have reports on the economy and those include same-store sales for retailers in October. Import-export prices and weekly jobless claims, as well.

Well, turning to your thoughts, we were inundated here with e- mail regarding the distribution of charitable donations specifically by the Red Cross. Most of you were extremely critical of the American Red Cross and its outgoing president Bernadine Healy. Dr. Healy, our guest here, of course, last night.

Lee Cary wrote in to say, "To redeem their reputation, they should immediately distribute every last cent."

From Charles Knowles, "Her organization lied to us and took advantage of our sympathy."

Andrew Couch wants his money back. He writes: "If our donation is not going to be distributed to assist the recovery effort in New York City, Dr. Healy, would you be kind enough to refund our contribution?"

On to another topic that has many of you exasperated, credit card interest rates. Roberta Eckland wrote in to say: "At a time Americans needs relief the most, they are locked into exorbitant interest rates and various fees with no way to reduce their debt load."

Another viewer writes: "Give us a break. If the rate weren't so excessively high, people could pay off the balances a lot quicker, buy more and therefore stimulate the economy out of a recession."

Kerkstra writes into say, "It looks like the road to economic recovery goes over the backs of senior citizens with CDs and bank savings."

And we'll have a report here tomorrow night, as we take a special look at those credit card interest rates. Please join us then. And please, send us your thoughts at moneyline@cnn.com. Don't forget to include your name and address.

For this Wednesday evening, that's MONEYLINE. Thanks for being with us. I'm Lou Dobbs. Good night from New York. "WOLF BLITZER REPORTS" begins right now.

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