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CNN LOU DOBBS MONEYLINE

Dow Up 103.15; Nasdaq Advances to 1,349.02

Aired February 21, 2003 - 18:00   ET

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 Friday, February 21. Sitting in for Lou Dobbs, Jan Hopkins.
JAN HOPKINS, GUEST HOST: Good evening. Tonight, another nightclub tragedy with lingering questions. At least 95 people are dead and scores are injured, following a fire last night in Rhode Island. Officials fear that the death toll may rise even further. The fire began during a concert by the band Great White. We begin our coverage tonight with Bob Franken in West Warwick, Rhode Island.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN CORRESPONDENT (voice-over): The lawyers for the owners of the club described as devastated and shocked insistent they had no idea the performers were planning to use fireworks in their concert. Quote, "No permission was ever requested by the band or its agents to use pyrotechnics at the Station, and no permission was ever given." That is emphatically disputed by the leader of Great White, whose lead guitarist is among the missing.

JACK RUSSELL, LEAD SINGER, GREAT WHITE: We advance the shows and they'll say -- we even say -- this is what we have. This is what it does. Is it okay to use here or not? Some places say, yes, no problem. Some places say, no, we can't do that. So we don't. It's not like a big part of the show. Tonight, we had the permission to do it.

FRANKEN: But the owner of the famous Stone Pony in Asbury Park, New Jersey, says he was surprised recently when Great White used pyrotechnics at his club without permission.

DOMENIC SANTANA, OWNER, STONE PONY: Not once were we told that there were going to be any pyrotechnics whatsoever.

FRANKEN: The pictures of what happened were captured by a news cameraman, who happened to be in the club Thursday night.

BRIAN BUTLER, WPRI PHOTOGRAPHER: I noticed when the pyro stopped, the flame kept going on both sides. And then on one side, I noticed it come over the top, and that's when I said, I have to leave. And I turned around and I said get out, get out. Get to the door.

ERIN PUCINO, NIGHTCLUB GOER: It was like a big wave of people just floating towards the front door and then when we got to the front door, somebody fell and then everybody fell on top of them. FRANKEN: More than 80 are hospitalized, some in critical condition. Officials are having a tough Time finding out who all the victims are.

GOV. DONALD CARCIERI, RHODE ISLAND: Maybe in some cases that we're going to rely on DNA or some other things. Every case is different. I mean, some of the situations are just horrific.

FRANKEN: The club had recently passed a routine fire inspection.

CHIEF CHARLES HALL, WEST WARWICK FIRE DEPT.: They had several minor violations that were taken care of. And once they were inspected, they met all our requirements.

(END VIDEOTAPE)

FRANKEN: There will be investigations and perhaps prosecutions, but for the moment the community is dealing with an overwhelming tragedy, Jan, and unspeakable grief.

HOPKINS: Thanks, Bob Franken in Warwick, Rhode Island. Some of the lingering questions about the tragedy in Rhode Island center on responsibility for the band's use of pyrotechnics, as Bob explained. Band members say that the club's owners knew of their plans to use fireworks and granted permission. The club owner's deny that. CNN's Michael Brooks joins us now. Mike, what about this issue of responsibility? Who is responsible for deciding whether pyrotechnics are used in a club?

MICHAEL BROOKS, CNN CORRESPONDENT: Well, just a short time ago, Jan, the fire chief of West Warwick had a press conference, answered that question. He said in that town, whether the pyrotechnician is with the band or the club has to be licensed within the state. And then, they have to get a permit from the town to use pyrotechnics in that particular club.

Earlier today, I spoke with Don Bliss. He is the president of the National Association of State Fire Marshals. And he says that most states and most municipalities and cities will make it so that if they ask for a permit, for that particular club, that they will send a fire marshal or fire inspector out to talk to the pyrotechnician, test the pyrotechnics that are going to be used, and be there, also, at the club, when the show goes on. So that is the normal procedure that would happen and the chief, Charles Hog of West Warwick, Rhode Island said that it sounds like it is very similar to this kind of procedure, but that the pyrotechnician has to be licensed and get a permit for that particular show from the town.

HOPKINS: But in this case, clearly, that didn't happen, right?

BROOKS: That's exactly right. That didn't happen. The club seemed to be in compliance, as Bob Franken just reported. The maximum occupancy for this particular club was 300 people. And apparently, they were not at the maximum occupancy of 300 people, and there are four exits. Now, four exits are more than sufficient for those 300 people. After we've talked to other fire officials, they say that is not a problem. Four exits are in code with the 300 -- maximum occupancy for that particular property.

HOPKINS: But, apparently, what happened is that everyone rushed to the same exits where they came in, and they didn't realize there were other exits.

BROOKS: That's exactly right. And the fire chief said that 25 victims were found by the front door. Other victims were found in the bar area and, also, in the restrooms. And Jan, we can make all kinds of -- cities and states can make all kinds of codes for building -- on how they should be, how the -- they should run their buildings, but there's one thing that we cannot regulate and that's human factors -- how people will react during chaos. The chief said that it seemed that there was panic and chaos, in this particular case. And we look a week ago, where 21 lives lost in Chicago where there was no fire at all. And, in that also, again, panicking chaos of the crowd -- Jan.

HOPKINS: And, of course, that happens in that kind of a situation, when you don't know what's going on, and where there are a lot of people in one place trying to get out. Is there likely to be a lot more attention on clubs around the country as a result of two incidents like this in one week?

BROOKS: I think the local cities and municipalities will take a look at their building codes, their occupancies for clubs like this. And I also spoke with a fire chief a short time ago who is on a legislative committee with the international association of fire chiefs. And they, too, are looking at the different regulations that govern establishments such as this, and also sporting events, and other specialty-type events in small clubs and large clubs alike -- Jan.

HOPKINS: Thanks, CNN's Mike Brooks. And turning now to the other major story that we're following tonight, the countdown to a possible war with Iraq. President Bush will welcome the Spanish prime minister to his ranch in Crawford, Texas, within the hour. The Spanish leader is one of the president's closest allies in Europe. The two will discuss the wording of a new U.N. resolution to authorize the use of force against Iraq. Senior White House correspondent John King has more from Crawford -- John.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Jan, those conversations with the Spanish Prime Minister Jose Maria Asnar are part of an urgent day of diplomacy for the president. He has been out of the public eye, but, as you noted, he will confer with the Spanish prime minister tonight. Not only is Spain an ally of the United States, but the talks to focus on Spain taking an even more prominent role. Spain sits on the Security Council. Senior administration officials telling us they want the Prime Minister Aznar to help the United States and Great Britain sell that new resolution.

We are told the United States will put that resolution forward early next week, perhaps as early as Monday. But we are also told the Bush administration is not expecting a vote until early in the second week of March. That would be just after the chief weapons inspector Hans Blix delivers his next report to the Security Council. So a much clearer sense tonight of the possible timetable for any military confrontation with Iraq. A vote in the Security Council on the new U.S. resolution not expected until sometime around March 10.

Now, also, a breakthrough today in yet another diplomatic struggle for the administration. After days of frustration and demands that the administration needed an answer from Turkey, as to whether U.S. troops would be allowed to be stationed there, U.S. officials voicing frustration yesterday. But, today, as the outlines of a deal emerged, a much more polite approach from the White House press secretary Ari Fleischer.

(BEGIN VIDEO CLIP)

ARI FLEISCHER, WHITE HOUSE PRESS SECRETARY: Well, the United States has noted the statements made by Turkish officials. This is a serious matter, and our good friend and ally, Turkey, is taking it seriously. And we are continuing to talk to Turkish officials and look forward to having more to say or more to indicate at the appropriate time. We continue to talk with our good friends.

(END VIDEO CLIP)

KING: Turkey's prime minister and Turkey's foreign minister, both saying today they expect a deal to be announced within the next several days. A multibillion-dollar aid package from the United States. And, finally, after days of frustration, permission expected for U.S. troops, tanks and other military hardware to go ashore to prepare for a possible northern front in any war with Iraq. President Bush also spoke today to the Emir and the foreign minister of Kuwait. Of course, Kuwait, a major staging point for what could be the southern front of the war. U.S. military troops practicing and staging exercises in Kuwait now as the military deployment is now past the 150,000-troop mark -- Jan.

HOPKINS: Thanks very much, John King in Crawfrod, Texas.

Defense officials say that the total number of U.S. troops in the Gulf region could reach 230,000 over the next week. Defense Secretary Donald Rumsfeld said that the military is ready to go to war with Iraq now if the president gives the order. Senior Pentagon correspondent Jamie McIntyre has that story -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Jan, it's hard to keep track of exactly how many U.S. troops are within striking distance of Iraq because the number keeps changing every day. At last check, there were more than 180,000 troops in the region for the express purpose of a possible war with Iraq. And that is more than enough to launch an assault especially if the U.S. were to give up on opening a northern front with troops from Turkey.

Now, privately, Pentagon officials said once they pass the 150,000 mark, the U.S. was militarily capable of executing a war plan. But the first time we heard that publicly from Defense Secretary Rumsfeld was in a broadcast interview last night.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: There's been a good deal of time, so we are at a point where if the president makes that decision, why, the department of defense is prepared and has the capabilities and the strategy to do that.

(END VIDEO CLIP)

MCINTYRE: Now, what that means according to Pentagon sources is that once President Bush makes a decision, the U.S. could be in a war with Iraq within about two weeks. There still would need to be have some preparations carried out once the order is given. And they can't really shorten that time too much unless something unexpected were to happen. It also -- there's also, though, a feeling that the U.S. will wait to see if it gets permission from Turkey.

But if it doesn't, it doesn't really matter when those troops from the 4th Infantry Division get to Kuwait, because they would be bringing up the rear in any event. So their arrival would not stop a possible offensive. But, again, all of this based on when President Bush makes a decision. And, at this point, Pentagon officials say he still hasn't made that fateful decision -- Jan.

HOPKINS: Jamie, last night you were telling us that U.S. troops are headed to the Philippines. What more can you tell us about their mission today?

MCINTYRE: Well, we know a little bit more about exactly how many troops, where they're going and what they're doing. About 350 special forces will actually conduct a hunt in the jungle, side by side with Philippine military forces, to hunt Abu Sayyaf guerrillas in the islands in the southern Philippines. Another 400 support troops will be on a support base, and about a thousand marines will be on a ship offshore -- two ships, actually, to serve as a quick reaction force just in case there's trouble. This is the first time that the U.S. military's engaged in offensive operations in the Philippines. They'll be under the command of an U.S. commander, but they will be following the directions of the Philippine military -- Jan.

HOPKINS: Thanks, Jamie McIntyre at the Pentagon.

And coming up on MONEYLINE, new details about the fire that killed more than 130 people in a South Korean subway station. Police talk of possible negligence and a cover up. It's one of the Pentagon's worst nightmares, a sea of fire in Iraq's oil fields. Bill Tucker reports on the lessons learned from the Kuwaiti oil field fires in 1991 -- Bill.

BILL TUCKER, CNNfn CORRESPONDENT: Jan, the technology's better. The stakes are higher. And it comes down to one word, and we'll explain.

HOPKINS: Thank you, Bill.

And, it was a second straight week of gains for the markets. The Dow Jones Industrial Average ended more than 100 points higher today. Christine Romans will have a complete report.

And also tonight, Joe Wilson, the last U.S. diplomat to talk with Saddam Hussein. We'll discuss American and British strategy against Iraq. That, and more, ahead.

(COMMERCIAL BREAK)

HOPKINS: ... investigating whether there was an attempt to cover up any wrongdoing by subway officials.

A bomb exploded outside a shopping mall in the southern Philippines today injuring five people. It was a third attack in two days. Police say that the device exploded under a car.

Hundreds of United Nations humanitarian workers are being allowed to leave Iraq voluntarily. The U.N. calls it a precautionary measure. About half of the roughly 900 U.N. employees left Iraq this month. The new policy does not affect the U.N. weapons inspectors in Iraq.

As John King reported earlier, the United states and its allies are discussing the language of a new resolution on Iraq. That resolution is expected to be introduced next week. Joining us to talk about it is Joe Wilson, a Middle East scholar and former diplomat in Iraq. In fact, he was the last U.S. diplomat to meet with Saddam Hussein. Mr. Wilson joins us now. Ambassador, what about this strategy to get try to get the majority of the Security Council around some kind of a resolution in the next week or so, do you think it will work?

AMB. JOE WILSON, FORMER U.S. AMBASSADOR TO IRAQ: Well, it's only going to work if they're able to get to the other members who hold veto power to abstain. And judging from what happened last week at the Security Council, and the hardening of positions since, there's still some work to be done. I guess where I would come down on this, it's important not to lose sight of the objective which is enshrined in 1441, which is disarmament. And the question really is, how do you best disarm Saddam?

HOPKINS: Now, it's interesting. John King was saying that the new resolution would be introduced next week but not voted on for another week or so. Is that partly because of the need for the diplomacy to kind of get everybody on board?

WILSON: Well, remember, last time we introduced a resolution it took several weeks to get it to come to a vote while various countries were massaging the language. I believe that it's in the interest of the United States and its allies to have as broad an international consensus, and as broad a multilateral coalition as possible to underpin what it intends to do to give it international legitimacy. So it's probably worth waiting in the hopes that you can bring on some of the more recalcitrant members of the international community.

HOPKINS: Do you think that promises will be made to the reluctant members of things that they may want?

WILSON: I think a combination of promises and threats. We've seen how the negotiating process has worked with Turkey. We see selective leaks from the administration talking about the pressure that is being brought to bear on some of the other members of the Security Council. So I think it will be a combination of carrots and sticks. We should all remember that after Yemen voted against the U.N. resolution in the first Gulf War, Secretary of State Baker walked out of the council chamber and said that was the most expensive vote they ever cast. And their aid allotment of $40 million a year was cut the next day.

HOPKINS: It's also interesting that the administration is saying that it doesn't really need another resolution in order to go to war against Iraq. So why all of this work? All of the diplomacy.

WILSON: Well, certainly, when we went into the negotiations for 1441, the administration tried very hard to make this the last resolution that they would need. And the U.N. Security Council and everybody decided that, in fact, what would happen if Saddam did not comply with this is that there would be another debate, but not necessarily another resolution. Now, it seems to me that certain of our alliance partners and, notably, Prime Minister Blair, actually needs a second resolution because of his plummeting popularity and public opinion in the U.K. That the sort of war that is being envisioned is not the sort of war that they should get into.

HOPKINS: So, really, this is to help Tony Blair?

WILSON: Well, at the end of the day, I think as President Bush has said repeatedly that he's fully prepared to go to war just based on what he thinks his authority is under existing U.N. resolution. So, it is not necessarily to help him. Although, I would go back to the point I made earlier which is that we want to have as broad an international consensus as possible. In order to get that, we need to narrow the objective. Everybody needs to understand that the objective of this is disarmament and, as it stands now, most people that were out protesting think that it's about something else. That it's about invading, conquering and occupying Iraq.

HOPKINS: Colin Powell said today that war could be avoided if Saddam Hussein left. I mean, how likely is that? You met with him.

WILSON: Well, I think it's unlikely that he will leave. First of all, I think that those who have been making those assertions that if he left everything would be okay, such as Secretary Rumsfeld, if I were Saddam Hussein, I probably wouldn't trust our secretary of defense, irrespective, of who that person might be making those assertions based on his experience with other dictators in the dock such as Mr. Milosevic.

I think it is highly unlikely he will go. I also wonder if it will avoid a U.S. ground movement into Iraq. I noticed today that there were a number of people in the administration were saying that even if Saddam were not there, the U.S. would feel compelled to go to Iraq just for the purposes of trying to go and find these weapons of mass destruction. So, entering Iraq is a military action, even if you do it in the absence of Saddam Hussein.

HOPKINS: Ambassador Joe Wilson, thanks for joining us.

WILSON: Pleasure. HOPKINS: The oil markets could face massive supply disruptions if there is a war with Iraq. Military planners fear that Saddam Hussein may try to destroy Iraq' oil wells. The Pentagon has already asked firefighting experts to make plans to put out oil fires. Bill Tucker has the story.

(BEGIN VIDEOTAPE)

TUCKER (voice-over): This fire at ExxonMobil's storage facility in New York Harbor burned for less than a day. The fires in Kuwait during the Gulf War burned for seven months. It took two years before the wells were returned to normal use, and caused environmental damage 20 times worse than the Exxon Valdez oil spill. Should Saddam do to Iraq's wells what he did to Kuwait, the damage environmentally and financially would be far greater.

LARRY GOLDSTEIN, PETROLEUM INDUSTRY RESEARCH INST.: If Saddam were to put his wells afire, we would not be able to get that economy up and running relatively quickly. And we can win the military battle and lose the bigger war, unless we can protect that economy. We have to get it running immediately.

TUCKER: The Department of Defense currently estimates cleanup costs could run between $30 and $50 billion, or a little more than double what was spent in Kuwait. Complicating the situation is that Kuwait's 700-plus wells are in a relatively compact area, unlike Iraq's 1500 wells which are spread out in the north and south. Which puts the pressure on these guys, not before 1991 in Kuwait, nor anywhere at any time since, has the oil well firefighting industry faced such a challenge. A lot was learned fighting fires in Kuwait, and the technology has improved. But the ability to handle a worse- case scenario in Iraq would come down to experience and people.

MIKE MILLER, CHMN. & CEO, SAFETY BOSS: The greatest factor, and the speed with which Kuwait was carried out, was the experience of men working on those big wells every day, and those experienced people are still available.

(END VIDEOTAPE)

TUCKER: The biggest concern among observers is whether or not preparations are being made to get well firefighters in place in the region before any fighting begins. The Department of Defense won't comment on the state of preparation, or whether it's in contract talks with any companies, except to say that if contracts are signed, Jan, announcements will be made at that time.

HOPKINS: And the companies aren't saying anything?

TUCKER: And the companies are very tight lipped about it. And they admitted to me, they're getting a lot of phone calls from a lot of reporters who want to know, and they're not talking.

HOPKINS: Thanks very much, Bill Tucker.

Coming up on MONEYLINE, doctors say the recipient of a second heart and lung has suffered a major set back. We'll have details. And investigators now say as many as three large chunks of foam may have hit the shuttle Columbia on takeoff. That, and more, coming up.

(COMMERCIAL BREAK)

HOPKINS: Coming up next, doctors say the teenager girl who had a second heart and lung transplant has suffered a serious injury. Our medical correspondent will have a live report from Duke University Hospital in Durham, North Carolina.

And we rely on paramedics to save our lives, yet they are among the most underpaid workers in the country. We'll have those stories and more when we come back.

HOPKINS: Some new developments tonight in the investigation into the space shuttle Columbia disaster. A NASA safety engineer warned of a devastating breach near the shuttle's left wheel days before the disaster. And in e-mails released by NASA today, that engineer was concerned that officials were not adequately considering the threat. Other documents released by NASA show that Columbia may have been struck by as many as three large chunks of foam. These documents came were from Boeing eight days before the disaster.

In other news, another set back for double transplant patient Jessica Santillian. Doctors revealed today that the 17-year-old girl may have irreversible brain damage. Elizabeth Cohen is at Duke University Hospital with the latest -- Elizabeth.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Jan, unfortunately, the situation appears to have gotten even worse. Very sad news from here at Duke University hospital. A spokesman for the Santillian family says that doctors have told the family that Jessica is brain dead, that they've done an EEG, and they have seen no brain activity. The doctors say they want to do two more tests, one at 7:00 a.m. tomorrow and one in the afternoon to confirm that. And this family friend Mack Mahoney says then the family will have to make the decision about taking her off the ventilator, once she's absolutely, officially declared brain dead.

As you can imagine, the family is devastated. They had such high hopes when on February 7 their daughter received a heart and lung transplant that she had been waiting for three years. As we all know by now, that was the wrong type. The organs were type A, and Jessica is type O. She had to live with those organs for two weeks while her body tried to reject them. Then she had the second operation yesterday morning. And from what the family says, it was a story that will not, unfortunately, have a happy ending.

Now, there's been a lot of antagonism between the Santillian family and Duke University. The family says that Duke did not publicly discuss this mistake that they made until ten days after the botched operation. And Duke says that that is true, that it was ten days before they publicly discussed it, even though they told the family right away. The family says during those ten days if they had told the media that perhaps they would have found that second set of organs more quickly. And so, this is what the family spokesman, Mack Mahoney had to say earlier today.

(BEGIN VIDEO CLIP)

MACK MAHONEY, SPOKESMAN FOR TRANSPLANT FAMILY: To me, if she dies, they murdered her.

(END VIDEO CLIP)

COHEN: And Mack Mahoney there when he says "they murdered her," he means that Duke murdered her. Duke said throughout this entire process, once they realized the mistake, that they have done everything in their power to save Jessica Santillian's life -- Jan.

HOPKINS: Thanks, Elizabeth Cohen in Durham, North Carolina.

And still ahead tonight, the head of the International Atomic Energy Agency is looking for nukes in Iran. Kitty Pilgrim has that report.

KITTY PILGRIM, CNNfn CORRESPONDENT: Jan, Iran has some very suspicious facilities, and authorities want to get a closer look. The question is, will Iran cooperate with regular inspections? -- Jan.

HOPKINS: Thanks, Kitty. And later, I'll be joined by some of the brightest minds in business journalism in our weekly "Editor Circle."

And our CEO of the week's recipe for success may come from down under. That story and more, next.

(COMMERCIAL BREAK)

HOPKINS: Two close allies of the United States repeated their support of President Bush's Iraq policy in Europe today. British Prime Minister Tony Blair and Italian Prime Minister Silvio Berlusconi held talks in Rome. Just a week ago, the largest demonstrations against a war with Iraq were held in Britain and Italy. Alessio Vinci reports from Rome.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN ROME BUREAU CHIEF (voice-over): Tony Blair and Silvio Berlusconi emerged from their talks to say there's no rush to war and that they both want to see Saddam Hussein disarmed peacefully through the United Nations. But the time for that is running out.

TONY BLAIR, BRITISH PRIME MINISTER: The only circumstances in which Saddam is going to disarm peacefully are circumstances where he gets a clear, united message on behalf of the world community, disarm peacefully or you will be disarmed by force.

VINCI: Both leaders suggest the Iraqi president has no intention of cooperating fully the U.N. inspectors, and the British prime minister says Saddam Hussein should not make the mistake of thinking that the will of international community to disarm him is weakening.

In other words, don't pay too much attention to the anti-war protests. Both men aware that public opinion is against them. The largest anti-war demonstrations in Europe last week were in Rome and London, where people felt Saddam Hussein was not an imminent threat. The Italian prime minister says the public is simply misinformed.

"In Italy someone compared Bush to Hitler and Berlusconi to Mussolini," he says. "And someone basically made Saddam Hussein look like a good Muslim-Arab citizen. The reality," he says, "is opposite. We must inform people about the real history of Saddam, and how his regime used weapons of mass destruction against his own people."

The two prime ministers are more cautious about possible links between Saddam Hussein and al Qaeda, but don't rule out the possibility that terrorists want to secure weapons of mass destruction, and that Iraq might be a source.

BLAIR: If you leave Saddam Hussein with these chemical, biological, potentially nuclear weapons, the link between that and international terrorism is so obvious it hardly needs to be stated.

VINCI: For now, these two political veterans, often portrayed by critics as hawks on Iraq, want to be seen as reluctant warriors.

(on camera): Mr. Blair and Mr. Berlusconi had two messages. First, that there is still room for a peaceful solution to the Iraqi crisis. But the second, that the choice between war and peace rests solely with Saddam Hussein.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE)

HOPKINS: The world is also watching events in Iran. The head of the U.N.'s nuclear monitoring agency visited a controversial Iranian nuclear facility today. The United States says that facility could be part of a secret nuclear weapons program. But Iran says its nuclear research is harmless and only for developing power plants. Kitty Pilgrim has the story.

(BEGIN VIDEOTAPE)

PILGRIM (voice-over): Looking for nukes. Mohamed ElBaradei has a tough job. His beat these days, the axis of evil. First Iraq, then dealing with North Korea, now Friday and this weekend, Iran. Two facilities in Iran under scrutiny are Natanz (ph), about 200 miles south of Tehran, and Arak (ph). Natanz (ph) is visible in these satellite photos.

Last December, the U.S. State Department said the buildings at the Natanz site were being covered with earth. They said it was a tip-off Iran building a secret, underground site, probably part of a secret weapons program. The second worry is the site in Arak, also on the schedule for this trip. GARY MILHOLLIN, WISCONSIN PROJECT: Iran is building a series of plants that have no relationship to its civilian nuclear program. Power program. And so, the inference has to be that these are really for making nuclear weapons.

PILGRIM: Very worrisome is the fact Iranian President Mohammad Khatami recently announced that Iran has started excavating and processing uranium, which can be used to make bombs. Iran is building its first nuclear power plant at Bushehr (ph) with Russian help. It will be finished by the end of the year. It is something experts find worrisome.

LEONARD SPECTOR, MONTEREY INSTITUTE: The Russian help on the Bushehr plant is troubling, because it creates a cover for all kinds of nuclear transactions. The other problem is that you are training a lot of Iranians in nuclear power plant construction, in very high quality construction, for these nuclear facilities, safety procedures and the rest.

(END VIDEOTAPE)

PILGRIM: There's great skepticism over Iran's claim to need to nuclear power for energy. Iran is sitting on some of the richest oil fields in the world -- Jan.

HOPKINS: Why now? Why are we hearing about these plants at this point?

PILGRIM: Well, the inspection was scheduled. ElBaradei was scheduled to do this a while back. It started to really come out into public view in December. And this is the soonest they've started to look.

HOPKINS: Thanks, Kitty Pilgrim.

And as we reported, Turkey wants more aid from the United States in return for the U.S. use of Turkish bases. That is a subject of tonight's MONEYLINE poll. Should the United States offer aid to gain military cooperation from countries in action against Iraq? Cast your vote at CNN.com/moneyline, and we'll bring you the preliminary results later in the broadcast.

Despite the talk of war, stocks finished higher today on Wall Street. The Dow Industrials closed out the week with a triple digit rally. Today's gains cap a second straight winning week for all three of the major indexes. Christine Romans joins us with more on what's behind the rally -- Christine.

CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: Hi there, Jan. Well, a benign CPI report was one reason why the market was doing better. And the market also overcoming worries this morning about that Staten Island oil fire. And in the end, the market's higher for the week.

The Nasdaq really the best performer on the week, up about 3 percent. You can take a look. The Dow, the Nasdaq and S&P all higher this week, as is the 10-year note, still up about .5 percent. Take a look at this year, though; you still have the Dow down, the S&P 500 down about 3.6 percent. The Nasdaq, though, now positive on the week, and obviously the 10-year note still the big winner.

Overall, a lot of folks saying that geopolitics continues to rule here. They sort of feel like maybe there was some, as they say, short covering to close out accounts as we head into the long weekend. Also, there was a double expiration today. So the volume was a little bit better, about 1.4 billion shares. That's the best volume, Jan, that we've seen in a couple of weeks.

HOPKINS: Christine, is money starting to move back into the markets? Do we have evidence of that?

ROMANS: It is. You know, AMG data shows over the last four days that you've seen money coming into the markets. Particularly, into technology funds. And Lipper points out that you had equity funds positive this week for the first time in about seven weeks. And science and technology doing the best. And you had pullbacks in gold and bear funds, so that's showing, at least, a little bit cautious entry into the market.

HOPKINS: But there's still people betting against the markets. Short interest is rising.

ROMANS: Absolutely, absolutely. The latest numbers from the New York Stock exchange show short interest rising to 1.4 percent of all the volume here on the Big Board. So for February, at least ending February 14, short interest rising here. And that's a number we continue to watch. It's been hovering near record levels.

HOPKINS: Thanks. Christine Romans at the New York Stock Exchange.

The market is one of the topics for our "Editor's Circle" of leading business journalists tonight. The economy, the impact of growing international tensions are also on the minds of my guests.

I'm joined by Steve Shepard, he's editor-in-chief of "Businessweek," and Robert Lenzner, he is national editor of "Forbes." Welcome to both of you.

One of the things I read about the market today was that it is up because of the expectation that war is delayed. So war is still very much in the market. Would you agree, Steve?

STEVE SHEPARD, EDITOR-IN-CHIEF, "BUSINESSWEEK": Oh, absolutely. I don't think there's going to be any clear pattern up or down. I think it'll go sideways. Some days up, some days down, until we get some resolution of this.

HOPKINS: And Bob?

ROBERT LENZNER, NATIONAL EDITOR, "FORBES": Well, I think there's signs that the economy is not so badly off. I think that might have been one of the things. But I think there's so much uncertainty over the war, I don't think you can take any hope from just a few days of trading.

HOPKINS: And you can't interpret whether people think that there's a delay, or imminent, or whatever?

LENZNER: Well, no, I don't think you can. I wouldn't. If I was an investor, I wouldn't do that. But I think that it's clear from what happened this afternoon, that Secretary of State Powell made this offer that if Saddam Hussein would stand down, that there would be no war. That was -- and that we would put a military governor in Iraq. And so, that might have -- I don't know what time that came out, but that's a major offer that the secretary of state made. Which sort of changes -- it's clear we're looking for a way to delay it or to try to resolve it without going in.

HOPKINS: In the meantime, Steve, what are you hearing from companies? And from individuals. What are they doing in this kind of environment, where everything's on hold?

SHEPARD: Well, the companies are clearly hunkered down. I've never seen CEOs so gloomy. They don't want to invest, they don't want to spend until they see what's going on. And, of course, they're waiting for profits pick up. But profits aren't going to pick up until we get the international situation resolved. Consumers are just going sideways. I mean, consumer spending has held up remarkably well so far. But the question is how long that will continue.

HOPKINS: You know, it's interesting. In the last few days, we really have heard from the axis of evil. North Korea, Colin Powell's going to Asia. Iran, Iraq. Can we, you know, kind of resolve all of these things at the same time?

LENZNER: No. We may not resolve any of them. That's one of the things. If you compare it today with 1990, before we went in -- before the Gulf War. I was looking at it today. Today there were four different risky things that were not there in 1990.

One is al Qaeda. And the threat, that was apparently very real, of another terrorist attack on America. That's A. B is North Korea. Three is the split between the Europeans and the Americans on Iraq, and a number of other trade issues. OK? And four is the problems of Venezuela with the shortage of oil. And it's driving up the price of crude oil up to, I think it went up to $37 a barrel. Gasoline went up to $1.66 and $2 in some places. Those are serious negative influences on the economy.

SHEPARD: You know, what's very interesting, and ironic, is that when it comes to Iraq, our allies want U.S. to act multi-laterally through the United Nations. When it comes to North Korea, China, which has taken different position in Iraq, is saying, we want you to deal with this. We don't want to be bothered. So they can't have it both ways. If we're going to act multilaterally with our partners and allies, then we have to do that in North Korea where, frankly, I think, it could pay off more.

HOPKINS: Well, and it's interesting that Powell is visiting, Japan, China, and South Korea to try to get some kind of a, you know, or multi-lateral position on North Korea. Right?

LENZNER: I discussed it with the editor of "Foreign Affair" magazine, since I'm not a geopolitical expert. He told me that it's to try to cool off what's going on over there with North Korea, while we deal with Iraq. In other words, to try to not have something happen, not have tensions rise too much over there because we got to concentrate on whether we're going in, and how long it's going to take, and what the ramifications of that are. So, yes, these are really incredible times.

SHEPARD: I can't figure out the game China is playing over there. It's not in their interest to have a dangerous North Korea running around.

HOPKINS: Next door.

SHEPARD: Yes. It is not in their interest to see Japan arm itself with nuclear weapons, because they're afraid of North Korea. It is in China's interest to damp this down; and I think, ultimately, they will, acting with the Japanese and the Russians and the South Koreans and the U.S. There's got to be a multi-lateral solution over there. The U.S. can't solve this problem by itself over there.

LENZNER: You know, it's an embarrassing time for America. Because we're the strongest economic nation in the world. We're the strongest military nation in the world. Europe doesn't have great defense forces. Japan has none. China's coming along. And yet, look at what we're faced with. The crisis that we're faced with right now. We were discussing it before the show and ...

SHEPARD: It's the paradox of power. We have all this power, and yet, we're not able to use it effectively.

HOPKINS: Meeting, this weekend, of a group of seven finance ministers in Paris. Presumably, that discussion is going to be about Iraq, not about finances, right?

SHEPARD: I don't think so. This is a regularly scheduled meeting of economic ministers. John Snow is going, secretary of treasury for the United States. They're going to talk about economics. The United States wants Europe to grow faster; they want them to be more of a locomotive. Right now they're not even a caboose. And, it will be colored by the political situation, but this is not a meeting of diplomats. I think they're going to focus on economics.

LENZNER: I was somewhat disappointed to read this afternoon, also, that he was going to discuss corporate governance in Europe. Where the ministers of finance -- I think it's a get to know the guys that are going to be on your beat.

HOPKINS: Meet and greet. Thanks very much, Steve Shepard and Robert Lenzner.

Coming up next, his company operates nearly 1,000 restaurants around the world, and his most famous chain is blooming across America. He's our CEO of the week.

Also tonight, a special report on paramedics. They often mean the difference between life and death for a seriously ill or injured person. But they are also among America's most underpaid workers.

(COMMERCIAL BREAK)

HOPKINS: When Outback Steakhouse was founded, the partners thought it might be four or five restaurants in the Tampa area. Fifteen years later, there are nearly 700 Outback outposts in all 50 States. Outback Steakhouse's Chris Sullivan is our CEO of the week.

(BEGIN VIDEOTAPE)

HOPKINS (voice-over): Outback Steakhouse CEO Chris Sullivan never went to Australia to research restaurants when he was starting his business.

CHRIS SULLIVAN, CEO, OUTBACK STEAKHOUSE: We went and visited Australians that were in business in the United States to find out what was making them successful. But we didn't go to Australia to bring back a bunch of authentic Australian dishes, because I'm not sure the American would palette would go there. Vegemite isn't a staple in the United States.

HOPKINS: Sullivan has expanded the brand, since going public 1991, to include Carrabba's Italian Grill, Fleming's Prime Steakhouse and Wine Bar, Bonefish Grill, Roy's, and Lee Roy Selmon's.

There are 972 restaurants worldwide, generating $2.4 billion in revenue, and employing more than 73,000 people. Shares of Outback Steakhouse are up 20 percent over the past three years. Its board is independent. Outback Steakhouses and Carrabba's Italian Grills are run through a partnership program. Potential restaurant managers make an initial $25,000 investment in the business. In return, they receive a base salary and 10 percent of the restaurant's monthly sales.

SULLIVAN: They do act like owners. And they're looking at ways to increase their top line, improve the customer experience, improve their employee experiences, and they know that that's the key to driving sales.

HOPKINS: Benefit packages are priced on a sliding scale for Outback employees.

SULLIVAN: As the compensation levels, salary levels, of different employee groups move down, they pay less of their salary toward employee benefits. So an hourly employee at Outback can get a nice plan for about $40 a month.

HOPKINS: The US Military was recently a beneficiary of Outback Steakhouse volunteerism. Employees flew to Afghanistan to bring food to the US troops stationed there.

SULLIVAN: Those troops get these Bloomin' Onions and Shrimp on the Barbie and eat Outback specials. The troops had a blast, and all our people just -- it was a lifetime experience for them.

(END VIDEOTAPE)

HOPKINS: Chris Sullivan of Outback Steakhouse, our CEO of the week. Congratulations, Chris.

And coming up next, they are the professionals we call on when our lives are on the line. Yet, they are among the most underpaid in our society. We'll have a report.

(COMMERCIAL BREAK)

HOPKINS: When that tragic fire broke out last night in Warwick, Rhode Island, paramedics were among the first responders on the scene. Their efforts undoubtedly helped save several lives. Yet, like many health professionals, paramedics are notoriously underpaid. Fred Katayama has the report.

(BEGIN VIDEOTAPE)

FRED KATAYAMA, CNNfn CORRESPONDENT (voice-over): Paramedic Ted Flanagan hates paperwork, but boredom is brief. Ted and his partner average one 911 call every hour. He passed up law school and took a 35 percent pay cut as a newspaper reporter to join the front line of health care. The ten-year veteran works 48 hours a week, but makes just $38,000, $3,000 more than the national average. To support his family, he works a second job.

TED FLANAGAN, PARAMEDIC, NEW BRITAIN EMS: We have EMTs here with Ivy League educations. People that could be doing anything they want, and they want to be doing this, because it's a great job. Monetarily, maybe not the greatest. We love the chaos. We love the fact that every day is different. Every day you get a chance to help somebody.

KATAYAMA: Paramedics turn any space into an emergency room. With ERs overcrowded, some people misuse paramedics to get care.

FLANAGAN: Diabetic, sugar 478. Hasn't had insulin for two days.

KATAYAMA (on camera): Some people see paramedics as ambulance drivers, but they're much more than just that. They can administer drugs, read electrocardiograms, and treat people for heart attacks and burns. And unlike nurses in a hospital, they work out in the field, often in adverse conditions.

KATAYAMA (voice-over): Ten medics died in the 9/11 attacks. As America ages, emergency calls spike higher. But low pay is causing a shortage of medics.

WILLIAM BROWN, JR., EXECUTIVE DIRECTOR, NATIONAL REGISTRY OF EMTS: We're going to have a crisis where you may be waiting 45 minutes to an hour after you call 911 for an ambulance to show up, because of the shortage of personnel.

KATAYAMA: That warning should set off alarm bells, but experts do not see pay turning sharply higher. Fred Katayama, CNN Financial News, New Britain, Connecticut.

(END VIDEOTAPE)

HOPKINS: "CROSSFIRE" begins in a few minutes. Let's get a preview from Paul Begala and Bob Novak in Washington -- Bob.

BOB NOVAK, HOST, CROSSFIRE: Jan, the road to the White House begins right here, and we have perhaps the next president of the United States to be harassed by Paul and me. Dennis Kucinich, congressman from Ohio.

PAUL BEGALA, HOST, CROSSFIRE: The debate is heating up again in Georgia about the Confederate battle flag on the state flag. There will be a referendum, courtesy of the new republican Governor, who was elected on the strength of people who wanted to restore that Confederate flag banner. It should be pretty contentious and interesting debate tonight. Jan.

HOPKINS: Thanks very much. "CROSSFIRE," at the top of the hour.

This Sunday, the 45th annual Grammy awards air on CBS. And during the broadcast, Procter and Gamble will air its first Spanish language advertisement on an English-speaking network.

The ad for its Crest Whitening Toothpaste is part of P&G's plan to tap into the buying power of Hispanic Americans. About 37 million Hispanics live in America, making them the country's largest minority group. The company expects the ad to be well received by everyone, because viewers don't have to speak Spanish to get it.

Still to come, the results of tonight's MONEYLINE poll, and an e- mail that we promised you last night about fighting war in the news.

(COMMERCIAL BREAK)

HOPKINS: Now the preliminary results of tonight's MONEYLINE poll. Should the United States offer financial aid to gain military cooperation from countries in action against Iraq? 19 percent of you said yes, and 81 percent said no.

Now for a look at your words. Lorrie from Germany is angry about overweight kids suing McDonald's. She writes, "They should all go on a diet. Their parents should be fined for poor control -- and they need to stop going to McDonald's."

On another matter, Dorothy Sawyer, from Florida, writes, "David Letterman hit the nail on the head when he said 'France wants more evidence... The last time France wanted more evidence it rolled right through France with a German flag.'"

And Doris Spencer, of California, writes, "Should we pay more money to get countries to assist us in the Middle East? Why don't we stop paying those that don't?"

And finally tonight, this thought from Gregory Miller, who writes, "I have come to the conclusion that if we were to fight all wars in the nude, we would all laugh and go home."

We love hearing from you. Send us your thoughts and ideas to MONEYLINE@CNN.com. Please include your name and address.

That's MONEYLINE for this Friday evening. Join us Monday, when our guests will include defense expert Richard Pearl and Turkish Ambassador to the United Nations, Farroukh Lolu. I'm Jan Hopkins in for Lou Dobbs. For all of us here, good night from New York.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com




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