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CNN LIVE SATURDAY

9/11 Commission's final report; Chinese Olympic Basketball Team to Be Coached By American

Aired July 17, 2004 - 12:00   ET

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


FREDRICKA WHITFIELD, CNN ANCHOR: It is Noon on the East coast, 9:00 a.m. out West. I'm Fredricka Whitfield at the CNN global headquarters in Atlanta. Ahead this hour, new information about a possible tie between the 9/11 terrorists and the Iranian government.
Also, a live report from the West coast where wildfires have more than 2,000 firefighters scrambling to keep things under control.

And talk about the spy who loves you. We look at the continued use of sex as a special tool in the game of espionage.

But first, a look at the top stories now the news.

A U.S. soldier has been killed in northern Iraq after his convoy was hit by a roadside bomb. A second soldier was wounded. The U.S. troop death toll in Iraq now stands at 895.

Funeral services were held for 90 schoolchildren killed in a schoolhouse fire in southern India. Most died while trapped inside the thatch roofed school, others died later of severe burns. The school principal and four others are under arrest, no adults were killed. Faculty members are accused of abandoning the children.

Palestinian President Yasser Arafat has rejected the resignation of Prime Minister Ahmed Qureia. Qureia offered to step down during an emergency Palestinian cabinet session called after a state of emergency was imposed in Gaza. Keeping you informed, CNN, the most trusted name in news.

We begin this hour with's 9/11 Commission's final report that is expected to come out next week. It reportedly points an incriminating finger at Iran. Quoting from the article:

"Citing a recently discovered December 2001 memo buried in the files of the National Security Agency, the commission report states that Iranian border inspectors were instructed not to place stamps in the passports of al-Qaeda fighters from Saudi Arabia who were traveling from bin Laden's camps through Iran..."

The report is the cover story for the upcoming issue of "Newsweek." It's called "9/11 Report: The Iran Factor." And its author, Investigative Reporter Michael Isikoff is joining us now from Washington.

Good to see you, Michael. MICHAEL ISIKOFF, "NEWSWEEK": Good morning.

WHITFIELD: Well first, let's explain what that passage we just gave really means. That Iran didn't stamp the passports of suspected al-Qaeda members coming from those Afghanistan camps. Why and why is this significant?

ISIKOFF: Well, it's primarily significant because the commission report states that 8 to 10 of the so-called "muscle hijackers," the hijackers who came in -- starting in April of 2001 and served as the sort of backup to the pilots, to -- on September 11 and allowed the hijacking to take place, had gone from the Afghan training camps through Iran and had clean passports. In other words, when they came into the United States, they had no stamps indicating they had been to either Afghanistan or Iran, which would have been red flags for U.S. border inspectors that might have prompted further scrutiny of who they were and why they were coming to the United States. The reason they apparently did so is because there appears to have been a general policy by the Iranian Security Services to ensure that al-Qaeda fighters coming from the Afghan training camps did not have stamps placed in their passports. Now this...

WHITFIELD: So your report indicates thought, that the Iranian government had no idea that these suspected al-Qaeda members were going to carry out 9/11, but at the same time it sounds like the government wanted to protect them in some capacity.

ISIKOFF: Exactly. One thing worth noting is, from all indications, it's not clear the hijackers themselves, the muscle hijackers, had any idea what the mission was when they came into the United States. In fact, there's some indications they didn't know what the mission was when they hijacked the planes, only the pilots knew what the destination of the planes was going to be. And the report makes clear that the Iranian government did not have advance knowledge of the attacks. But it did have this arrangement with al- Qaeda, which is quite serious and actually, in the view of many counterterrorism officials and some on the commission, goes far beyond any connections that al-Qaeda had with the Iraqi government of Saddam Hussein. In effect, the Iranian Security Services by having this arrangement were acting as -- helping to facilitate the September 11 attacks whether they knew about the ultimate goal of the September 11 attacks or not.

WHITFIELD: And so now these findings will come out next week in the 9/11 Commission report, and in many ways, I can see this bolstering the Bush administration's labeling of Iran as the "axis of evil" when for so long so many questions have been brought about as to why did President Bush say that in that famous State of the Union Address.

ISIKOFF: Right. Exactly. It that was the January 2002 State of the Union, which he identified Iraq, Iran, and North Korea. It bolsters the Iran part of that, on the other hand, many will say -- why was the administration so focused on Iraq, and especially playing up the Iraqi/al-Qaeda ties, which the commission will find did not constitute a collaborative operational relationship. And I think that will get some attention, already has gotten some attention. The seeming inconsistency between what the commission is finding about the nature of the al-Qaeda Iraq/Iran relationship and what the administration had previously portrayed it to be.

WHITFIELD: So, while this may better link or solidify the link between Iran and al-Qaeda, it may not be necessarily used to help solidify a link between Iraq and al-Qaeda.

ISIKOFF: Absolutely. And, in fact -- you know, you already, you have people saying things like, "oh, so we invaded the wrong country." If, in fact, the concern was about al-Qaeda connections, then it clearly from the report, it indicates it may have been far more serious when it comes to Iran rather than Iraq. And of course, when it comes to weapons of mass destruction, we do also have strong indications that the Iranians are continuing a nuclear programs, something that the Senate Intelligence report suggests last week, was not the case with Iraq.

WHITFIELD: Michael Isikoff from "Newsweek" magazine, joining us from Washington. Thanks very much. And the report coming out in next week's edition of "9/11 Report: The Iran Factor."

Well, more expected fallout from the 9/11 report. The "New York Times" reports today that the commission will recommend creating a new cabinet level post to coordinate all U.S. intelligence agencies. Such a proposal is sure to meet stiff comp -- opposition, rather, in Washington. Elaine Quijano is following that story from the White House, this morning.

ELAINE QUIJANO, CNN CORRESPONDENT: Good afternoon, Fredricka. Here in Washington, actually, not at the White House, but no confirmation yet from any commissioners on that report. But, as for the White House's perspective, what President Bush has said is that he is open to intelligence reform and he welcomes the commission's recommendation when they come out publicly. Now, the topic of intelligence has come up numerously on presidential trips and on the campaign trail. President Bush has indicated he feels the qualities and quantity of the U.S.'s intelligence needs to be improved and says there needs to be better coordination among agencies.

Now, the president made those particular comments at the beginning of the week, just days after the scathing Senate Committee report that found the U.S.'s intelligence in the run-up to the Iraq war was flawed.

Now John Kerry, President Bush's democratic opponent has also raised this issue. Yesterday, in fact, Senator Kerry said he believed the first step was to reorganize the way in which intelligence is gathered and he said it was long overdue that there be a coordinator of national intelligence in the U.S. Now, the arguments for the creation of a new cabinet level position will likely echo those from a couple of years ago when the new Homeland Security Department was created. Now, that was a move that President Bush opposed at first. And this time around, if there is a push for this new position, there is expected to be some resistance at the Pentagon and the CIA, which would lose some authority over the multi-billion-dollar intelligence budget, as well as other matters -- Fredricka.

WHITFIELD: All right, Elaine Quijano from Washington, thanks very much.

Wildfires are raging out of control in the America West. In southern California, homes and businesses are threatened by a 16,000- acre fire, North of Los Angeles. In Nevada, firefighters are trying to contain a fire that Nevada Governor Kenny Guinn calls "mean, ugly, and uncooperative."

Scott Huntley is a fire information officer with the Nevada Department of Fire and he is joining us now live by phone with an update.

And Scott, what is happening right now?

SCOTT HUNTLEY, NEVADA FIRE DEPT.: Well, we've made very good progress. Currently we have 50 percent containment, we have 7,566 acres burned, and -- but we are containing the fire, now. Unfortunately, we did lose 16 homes, and it looks very good, though, up on the lines. The weather has been actually in our favor, and instead of having very angry fire, now we have a fire that, I believe, is getting tired out, and we have a great number of personnel on it now that is starting to take hold of it.

WHITFIELD: And Scott, what is it about this fire in Carson City that is so particularly challenging compared to wildfires of the past?

HUNTLEY: Well, with the Western states and how dry they are, the weather conditions, it's the right mixture, and unfortunately I think nationally, we're seeing this trend and the Carson City fire is -- the waterfall fire is a great example of that. Also that makes this so unique is it is our state capital, and also above it, we have Tahoe, which is a national jewel we're concerned about, and also surrounded by recreational areas. So there's a lot of attributes to this fire.

WHITFIELD: Now, you mentioned it's 50 percent contained, but are you having to widen the potential danger areas in any capacity?

HUNTLEY: No, we aren't. And actually, we are starting to reduce the impact of this fire. We're letting a lot of folks back into their homes. We found out today there's been some good research of some folks checking things out and a lot of the recreational areas we are really concerned about have held their own. We've also found out a lot of the prior pre-planning and work that was done in case there was a fire has actually helped us out a lot and has prevented a lot of damage, even to some a lot of the structures, they did -- the community did get active and those efforts, it's obvious now that things are winding down, we're seeing things pay off, and that's a really positive thing to be able to let everybody know that some of these concepts are working.

WHITFIELD: Well, Scott Huntley of the Nevada Fire Department, thanks very much for taking the time to join us and continued best wishes on your efforts out there.

The firefighters out West are hoping they get some help from the weather soon. Rob Marciano has the latest forecast.

(NEWSBREAK)

WHITFIELD: All right, thanks a lot, Rob.

From one disaster to another do massive fires later lead to big hurricanes? CNN's John Zarrella looks at that later on in this hour.

And the world saw a defiant Martha Stewart yesterday.

(BEGIN VIDEO CLIP)

MARTHA STEWART, MARTHA STEWART LIVING OMNIMEDIA: I will be back. Whatever I have to do in the next few months, I hope the months go by quickly.

(END VIDEO CLIP)

WHITFIELD: But will that feistiness be enough to save her company? We take you live to her hometown. Plus an analyst looks at the company's future.

Also -- first came the mourning, now comes the anger over the tragedy in India that killed dozens of children. This is CNN LIVE SATURDAY.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

STEWART: There are certain people that I wish I had never met.

BARBARA WALTERS, ABC REPORTER: Want to name any names?

STEWART: No, I'm not naming any names,

WALTERS: OK.

STEWART: but you can guess who they are. And, of course, you're angry. I lost my job. I have lost my position in my company. I am no longer the chairman and CEO of Martha Stewart Living Omnimedia.

WALTERS: Would you...

STEWART: A great, great company, you know, so that makes me both angry and sad.

(END VIDEO CLIP)

WHITFIELD: Martha Stewart tells ABC's Barbara Walters she's a really good camper and is not afraid of prison. She also invoked the name of Nelson Mandela, pointing out that a lot of good people have gone to prison.

Trooper Martha Stewart put on a brave face and is talking like a survivor. Stewart remains free pending an appeal of her conviction. She was sentenced Friday to five months in prison, five months home confinement, plus two years supervised probation for lying about a stock sale. CNN's Deborah Feyerick is in Stewart's hometown of Westport, Connecticut, with some reaction there -- Deborah.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well Fredricka, a lot of different thoughts here on the streets of Westport, as you can here there's a street fair going on. A lot of people wandering around, but you definitely hear the buzz about Martha. Two people joining me right now, Whitney Finn and Tom Cowl (PH). You have pretty strong thoughts about Martha. How did she come across to you yesterday, Whitney?

WHITNEY FINN, WESTPORT RESIDENT: It seems like she was fairly arrogant, and I was bothered that she didn't really take responsibility for what she'd done. It was more -- you know, sorry that the courts and that everyone else blew this out of proportion, as opposed to, sorry for what I did.

FEYERICK: So, when she said it was a private matter or personal matter, that rubbed you the wrong way?

FINN: It did, I think she should just take responsibility for what she did and that is what she did to her company, not what other people did to her company.

FEYERICK: OK. And Tom Cowl (PH), what about you? What do you think about the things Martha has said since her sentencing?

TOM COWL, WESTPORT RESIDENT: I was struck by her comment that it was a small, private matter. It was -- that was an outrageous comment. You know.

FEYERICK: One of the things she said, and don't know if you heard this, but on "20/20" last night she said, you know, "a lot of good people have gone to prison. Consider Nelson Mandela," and she sort of brought herself to that level, as well. Again, what are your sort, of, impression on that?

COWL: That kind of comment from her wouldn't surprise me at all. You know, it's why she's in trouble, today.

FEYERICK: There are some people who do think that she got too heavy of a sentence, five months in prison, five months house probation for simply making false statements and obstruction of justice during a federal investigation. What do you think about the sentence?

FINN: I don't have so much to say, I think, about the jail time or the house arrest. I think what bothers me more is the financial fine was only $30,000 and given her net worth, I think it would have hurt her more and sent a lot clearer message to people who were doing those kinds of things if it were a much, much larger fine.

FEYERICK: Whitney Finn, Tom Cow, thank you so much. So again, lots to say here on a beautiful day in Westport, Connecticut -- Fredricka. WHITFIELD: And Deborah, I wonder outside Martha Stewart's home, at least one of her properties there in Westport in a very busy street corner, is there any activity? Are people going by there leaving any kind of - you know, gestures of thoughts or anything like that?

FEYERICK: No. We're quite far from the home, actually. We're here on Main Street. Best place though, to always come to tap the pulse of what folks are thinking. But again the time that she would serve would not be at her Westport home. That's really the home she used as a studio for her television show. Most likely she would be serving her time in her Bedford home, a place she calls Turkey Hill Farms -- Fredricka.

WHITFIELD: Deborah Feyerick, in Westport, thanks very much.

Well, shares in Martha Stewart Living Omnimedia soared 37 percent yesterday after the homemaking guru made her post-sentencing speech. She told supporters she'd be back and asked them to continue buying her products.

With us in West Palm Beach, Florida, is branding expert, Samantha Ettus. Her first book, "The Expert's Guide to 100 Things Everyone Should Know How to do" will be published in September.

Samantha, good to see you.

SAMANTHA ETTUS, BRANDING EXPERT: Good to see you.

WHITFIELD: Well, explain the rising stock and how, what is being called, a lenient sentence may, in some way, have restored some confidence in Omnimedia.

ETTUS: Well, this is almost the finish line that we're seeing now of what has been -- you know, a two-year marathon. And so a lot of investors are feeling more comfortable now knowing that she received what is equivalent to the minimum sentence. It gives them more confidence in her brand going forward. This is a company that thrives on brand extensions, which gives them a lot -- you know, a sort of, greater chance of success than a lot of other companies. And Martha's feistiness, her feistiness on the steps yesterday is really that same spirit that got her to where she is.

WHITFIELD: Do you see the momentum kind of keeping pace?

ETTUS: I do. You know, Sharon Patrick, the CEO, has done a phenomenal job of keeping the company on course during this tumultuous time and moving forward, once the sentence is served and/or the appeal goes through -- you know, it just, everyone at this point wants closure -- investors, board members, and employees and consumers.

WHITFIELD: Well, you talk about closure then. I wonder if some conventional wisdom is that perhaps Martha Stewart needs to go ahead and carry out her five-month sentence and five months -- you know, house arrest, and following probation as opposed to dragging things out with an appellate process that could take up to a year, possibly further stagnating her company. ETTUS: I am not as familiar with the legal intricacies of the case, but as a branding expert, I would absolutely advise her, if she was my client, to just serve the sentence and go through with it. But it's hard advice to give -- you know, jail time is a difficult thing to advise someone on. But in this case, I do believe that the closer we come to closure in seeing this case, the better off everyone is, involved. You know, if I were advising her I would advise her to stay strong, continue what she's doing, and if she does serve jail time, I think it's important she keeps her distance from the company while she's in jail so that she doesn't taint it and...

WHITFIELD: She asked subscribers to come back to her magazine and advertisers as well. Do you think that appeal helps and that they will?

ETTUS: The appeal was -- it was a mixed bag. I think some people were turned off by it. Others were not. You know, that's the same -- that's the same spirit that got her to where she is. And I think that that will appeal to her supporters. And I think there are so many people that have outreached her during this time and she was really speaking to them.

WHITFIELD: All right, Samantha Ettus the first book that you've coming out in September, called "The Expert's Guide to 100 Things Everyone Should Know How to do." Thanks very much for joining us from Palm Beach.

ETTUS: Thank you.

WHITFIELD: Well, Martha Stewart is talking to Larry King in her first live primetime interview, Monday night at 9:00 Eastern. She'll take phone calls, as well. Only right here on CNN.

Well, coming up on CNN LIVE SATURDAY: Hoop dreams. Hardly just an American yearning, it's international as well.

(COMMERCIAL BREAK)

WHITFIELD: Let's talk a little sports. Lance's chances are looking good at the Tour de France. Cyclist Lance Armstrong won the 13th and perhaps the hardest stage of the race today through the French mountains. Armstrong is now only 22 seconds behind the leader. Armstrong is seeking his sixth Tour de France championship.

Will Olympian Marion Jones be able to defend her title in the 200 meter run in Athens? She runs the 200 semifinal today after struggling yesterday in the quarterfinal trials in Sacramento, California. Jones is already Athens bound after winning the long jump event at the trials.

China's Olympic hoop dreams hinge on an NBA coach and a Chinese NBA star. Beijing has taken an unprecedented step of hiring an American coach to lead its men's basketball team to victory in Athens. CNN's Mike Chinoy has the story from courtside.

(BEGIN VIDEOTAPE) MIKE CHINOY, CNN CORRESPONDENT (voice-over): Dell Harris is the most popular American in China. And he's coaching the most popular Chinese in America. NBA star Yao Ming and the rest of this country's 1.3 billion people, hoping the Dallas Mavericks' assistant coach will lead China to its first Olympic basketball medal.

(on camera): But, translating that ambition into success is no guaranteed slam dunk or as the Chinese would say coe-long (ph) (UNINTELLIGIBLE).

(voice-over): Harris is trying to master hundreds of basketball terms in Chinese.

DELL HARRIS, BASKETBALL COACH: Believe me, I know hundreds of them. But transmission of information has to be so rapid fire that I can't think of the Chinese word quickly enough and by the time I say what I want to say and the translator says it, well, the moment has passed.

CHINOY: That's not the only coaching challenge.

HARRIS: Basically, they are not an aggressive, violent type of mentality.

CHINOY: But Yao Ming of the Houston Rockets says the team is thrilled.

YAO MING, CHINESE TEAM: He teaches us very -- many new plays and many new ideas for help us grow.

CHINOY : It's clear Beijing isn't Dallas, standing at attention for the Chinese national anthem, the boys from the Ministry of Public Security in the stands. The team, not yet at NBA level. But there's time because Harris knows the goal really isn't this year, but 2008, when the Olympics will be held here in Beijing and the Chinese get the home court advantage.

Mike Chinoy, CNN, Beijing.

(END VIDEOTAPE)

WHITFIELD: Well, still to come on CNN LIVE SATURDAY, a close-up look at a training manual for terrorists. We'll get some insight into al Qaeda's military strategy.

Plus -- an Ohio man survives some terrifying moments in Lake Erie. The amazing rescue, straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: Now in the news: Nevada's governor is calling it the meanest, ugliest wildfire to threaten Carson City. At least 14 homes have been consumed by the 7600-acre blaze. Firefighters have managed to protect the rest of the city and have about half the blaze so far contained. Palestinian Authority President Yasser Arafat has rejected the resignation of Prime Minister Ahmed Qureia. Qureia offered to resign this morning during an emergency cabinet session. The government shakeup is under way.

A state emergency has been declared in Gaza where Palestinian militants carried out a number of kidnapping this week.

Iraq's minister of justice was the apparent target of a car bomb this morning in Baghdad. He was not injured. Iraqi police say the explosion killed at least four people believed to be his guards.

Keeping you informed, this is CNN, the most trusted name in news.

On the campaign trail, both President Bush and John Kerry take the day off while the vice presidential candidates make the rounds. This hour, Dick Cheney is at a rally in Minneapolis, Minnesota. It is his fifth visit to what could be a swing state in the 2004 elections.

Later this afternoon, Democratic hopeful John Edwards will address a crowd gathered in Newport Beach, California. He has been seeking Latino support in the Golden State. Next stop for him, Florida.

The FBI warns Al Qaeda terrorists planning to attack the U.S. may be changing strategy. The federal agency is warning local authorities that Al Qaeda appears to be recruiting non-Arabs. The bulletin tells law enforcement agencies that Al Qaeda is looking for people with American citizenship or legal residency status to help carry out an attack. The notice does not mention a possible time, place or method of any potential attack.

A bi-weekly publication offers valuable insight into terrorist military strategy. It is called "Al Battar" and it includes everything from how to carry out a kidnapping to keeping up a safe house. Sean Callebs is in Washington with details from Al Qaeda's training manual -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Exactly, Fredricka.

A modern medium is helping terrorists spread their message of Jihad and at the same time luring legions of new potential killers into the fold. The Internet and the explosion of online magazines is proving to be an effective messenger for Al Qaeda. U.S. terror experts say there is no way to shut these sites down.

One of the most recent successes for Al Qaeda is their online magazine called "Al Battar", or "The Sword". It's published twice a month. From its appearance it could be any slickly produced periodical. Lots of colors, a table of contents, an op-ed page and even letters to the editors.

But these are magazines devoted to such topics as cleaning and care of weapons, an AK-47 to a rocket-propelled grenade launcher.

A recent edition focused on kidnappings, all the specifics of who, what, when, where and how.

(BEGIN VIDEO CLIP)

GABRIEL WEIMANN, U.S. INSTITUTE OF PEACE: It's a very sophisticated presence on the Internet. We have to realize that terrorists employ or have very efficient advanced, sophisticated computer geeks working for them.

You look at the Web sites of today. Compare them to six years ago when we started the project and you see how advanced they have become. For propaganda purposes, it's an ideal medium. Nobody is censoring them, nobody is blocking them. There's no way to block them.

(END VIDEO CLIP)

CALLEBS: Experts say it's probably not a coincidence there's been a rash of kidnappings in Iraq on the heels of the "Al Battar" issue. A study published by the United States Institute of Peaces says seven years ago it tracked one dozen Web sites that were actively used by terrorists. Today, they say, there are more than 4,000 out there.

Authorities say "Al Battar" goes beyond recruitment and fundraising. They contend that Al Qaeda isn't as much an organization as it is a wide number of cells around the world.

While it may seem as though it makes total sense for the U.S. to try to shut down these Web sites, terror experts say these sites are monitored by the U.S., and other nations, and this where intelligence experts are able to glean so much of the so-called chatter that provides insight into possible Al Qaeda operations.

Fredricka?

WHITFIELD: Sean Callebs, in Washington, thanks very much.

A small town in India is in mourning after a fire killed dozens of school children ages eight to 10. And as funeral services are held for the young victims, authorities are trying to determine how the fire started and why it spread so quickly. More from Satinder Bindra in Kumbakonam, India.

(BEGIN VIDEOTAPE)

SATINDER BINDRA, CNN INTERNATIONAL CORRESPONDENT (voice over): Inconsolable in her grief, a mother asks why? Why did she have to lose her seven-year-old daughter, Kanif Pria (ph), this way?

UNIDENTIFIED FEMALE (through translator): I can't bear this. I want my child back.

BINDRA: More than 90 children were killed in this southern Indian town when a fire engulfed their school.

(on camera): Officials believe the fire began in the school's kitchen and quickly spread to this roof, made of bamboo shafts. Within minutes this entire structure collapsed on screaming children. They had no chance. Firefighters later discovered their charred bodies clinging to each other.

(voice over): As they lay their loved ones to rest, many parents say this is a tragedy that could have been avoided.

"The kids weren't able to escape," he says. "There was only one way out."

Officials confirm the school had no proper fire escape and had violated several safety norms. The school's principal and other staffers have been arrested.

About 15 injured children are in hospital fighting for their lives. Their parents close at hand trying to provide them support and care.

UNIDENTIFIED FEMALE (through translator): They should have kept the kitchen away from the school. Oh, my god. What has happened to our children?

BINDRA: Back at the graveyard, many parents say they are better off dead. Another family lights a flame to ward off evil spirits from their son's grave. They also leave behind his favorite cookies.

Meanwhile, seven-year-old Konif Pria's (ph) family still has work to do. They bury her by the side of her 12-year-old cousin, also killed in the blaze. Two children whose families just a day ago were waiting for them to return from school; now together in this graveyard.

Satinder Bindra, CNN, Kumbakonam, South India.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WHITFIELD: Hundreds of firefighters are back on the front lines this weekend as dozens of wildfires sweep across parts of the Western United States. In California, alone, more than 200 fires are burning. The biggest in the mountains near Los Angeles has charred more than 14,000 acres. Hundreds of people have had to pack up and leave their homes as the flames have spread. Big wildfires are also burning in Nevada.

Thick smoke from wildfires is also a common scene this summer parts of South Florida. And if history is an indication of things to come, the dry weather pattern, there, could also spell trouble when this year's hurricane season nears its peak. CNN's John Zarrella reports.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT (voice over): Wildfires producing thick, choking, blinding smoke have been more of a nuisance this summer in South Florida than usual. The reason, a very dry spring. In fact, this past May was one of the driest Mays here since record keeping began.

Jim Lushine, a National Weather Service expert on severe weather says this could be a sign of bad things to come.

JIM LUSHINE, NATIONAL WEATHER SERVICE: There is a positive correlation between the dryness in the spring months here in South Florida and the event of a major hurricane.

ZARRELLA: There's no way to know if a big one will hit here, but Lushine says, if you look back historically, it's somewhat ominous. After three of the previous driest Mays, South Florida was hit with major hurricanes, Andrew in 1992, the 1935 Florida Keys hurricane and Betsy in 1965. Hurricanes hitting South Florida and unusually dry weather are both caused, to some degree, by the same weather feature in the Atlantic called the Bermuda High.

When it sets up close to the U.S. East Coast, as it has this year, storms can be steered into Florida. But Hurricane Center Director Max Mayfield says the High won't stay in the same place indefinitely.

MAX MAYFIELD, DIR., NAT'L. HURRICAN CENTER: I would hate to characterize the steering (ph) (UNINTELLIGIBLE) whole season by what's going on right now. It would be unheard of for this condition to persist.

ZARRELLA: The satellite image of Hurricane Isabel last year shows what happens when the Bermuda High is nudged away from the East Coast. Isabel turned to the north. Good for Florida, bad for the Carolinas.

(on camera): Because weather patterns are ever changing, hurricane forecasters say it's impossible to know which area, if any, will be in the bulls' eye a month or six weeks from now when hurricane season peaks. Which means no one from Texas to Maine should think they've dodged a bullet.

John Zarrella, CNN, Miami.

(END VIDEOTAPE)

WHITFIELD: Checking some other stories making headlines across America. Searchers are combing a rugged area in Southern California for a teenager who was reported missing two days ago. Seventeen-year- old Eric Sears (ph) disappeared while camping in Joshua Tree National Park. Sears is a cross-country runner and experienced hiker. Authorities believe he is carrying very little food and water.

This was a scene in Salt Lake City, Utah, as flames spread through a container manufacturing warehouse. Smoke from the blaze could be seen over the entire valley. About 100 firefighters were called to the scene. It was the biggest fire in the area in more than a year. Along Alabama's Gulf Coast, swimmers are being warned to look out for sharks. Right now authorities have spotted more than double the number of sharks that are usually in the water off the Gulf shores and Orange Beach.

An Ohio man told his rescuers he thought he was going to die when he got caught in the churning waters of Lake Erie. Reporter Scott McFarland, of affiliate WOIO, has the story.

(BEGIN VIDEOTAPE)

SCOTT MACFARLAND, WOIO CORRESPONDENT (voice over): The waves are rough and ruthless. They trapped a 28-year-old man beneath a small, wooden pier. They exhausted the team of divers who tried to pull that man to safety.

That, as firefighter Mike Rowe (ph), knocked out by the force of the water, took 15 minutes to pry this drowning man loose. Firefighter Larry Heczko finally emerged with the Avon Lake man, who by then had lost all energy and his swimsuit.

LARRY HECZKO, FIREFIGHTER: He was very scared. He was afraid. He was afraid that he might have been injured. But from the conditions of the water and the conditions that he was in, he didn't look to be trapped or entrapped, other than from fear.

MACFARLAND: As the pair emerged they smashed helplessly into the side of the peer. Heczko says was exhausted, too, but had help from the dozen or so firefighters by his side.

HECZKO: All I had to do, and all I had to think of was to hold on to my victim.

UNIDENTIFIED FEMALE: Those divers are unbelievable how they got him out of there and how he could hold on, but they kept him alive.

LARRY DRIZZELL, AVON LAKE FIRE CHIEF: To all the guys, it was tremendous. The dedication was overwhelming.

MACFARLAND: Hard to believe this man wasn't more seriously injured and hard to believe he thought it would be safe to swim in water this rough.

(END VIDEOTAPE)

WHITFIELD: Our thanks, for that report to CNN affiliate WOIO in Cleveland.

Coming up -- the dog days of summer. You and your pooch can share fun at a summer camp or stay in resorts and hotels these days. We'll show you some dog friendly travel spots.

And how sex-pionage, how hanky-panky and spying go hand in hand, when CNN LIVE SATURDAY returns.

(COMMERCIAL BREAK) WHITFIELD: If you believe a dog really is man's best friend, then you'll be wagging your tail if you plan a getaway to places like New York or Chicago. Dogfriendly.com is out with its second annual list of pooch friendly cities.

And Monterey/Caramel, California seems to top the list. That is followed by Cape Cod/Nantucket, Chicago, Seattle and Key West. And rounding out the bottom half of the list of Lake Tahoe, Toronto, New York, Washington and San Francisco.

The rates are based on the quality and number of dog friendly places that a traveler would use, such as attractions, outdoor restaurants, and lodging.

But where can you stay with your four-legged friend while you are on vacation? And what if you want to take a trip that focuses on your pet's interests instead of just on your own? Tara Kain, with Dogfriendly.com, has been following the trends of the growing market and joins us now from Sacramento.

Good to see you, Tara.

TARA KAIN, DOGFRIENDLY.COM: Hi.

WHITFIELD: Well there is a lot to choose from, isn't there? I mean folks really do consider their pets like family and they want them to vacation as well.

KAIN: There are a lot of -- the good news is there are lot of dog friendly places out there and a lot of establishments are gearing up for pet travelers having all kinds of special pet amenities for them.

WHITFIELD: I guess we've always known that there are a lot of hotels that will allow travelers to bring their pets. I've stayed in a few when I've traveled with my pets and they are not always that pretty.

You know, sometimes the room is a lot like feeling like the other people's pets are still there. So nowadays, some of the hotels, even luxury hotels have stepped up to the plate, haven't they? We're seeing a lot of luxury hotels catering to pets?

KAIN: That's right. A lot of them like Sheraton, Weston, and Lowe's Hotels, Kempton Hotels, which include the Hotel Monaco chain. A lot of them really have some amenities and the rooms are very nice. They clean the rooms with special vacuums and so they do a really good job and make your pet feel very welcome.

With special pet amenities like dog bed, dog bowls, when you get to the room there's special water just for the dogs and some cookies and treats. And...

WHITFIELD: And special treats. We saw the video with like the silver tray with what looked like brownies, but we know they are little bit more dog-friendly than that. KAIN: Exactly, yes.

A lot of them, too, will even be able to arrange a pet sitter or if you want your dog walked, they can help out with that, too.

WHITFIELD: What are the costs? What are we talking about? People are really ready to plunk down a lot of money for these special treats?

KAIN: It depends on the hotel. Some of them you do have to pay extra. For example, Lowe's Hotel, they don't charge any extra for a dog. You can take a dog of any size, little Chihuahuas, a big Great Dane. And they'll treat you just the same. There's no extra pet fee at all, which is great.

WHITFIELD: Maybe it's not a hotel you are looking for, but maybe a real outdoorsy kind of adventure for your pet. I understand there are a lot of dog camps now. And this doesn't necessarily mean a campsite where the dog owners want to stick around, but pets only.

KAIN: OK. Well, there are some of those. There are some boarding -- basically without a kennel. You can leave your dog there. It is more of an informal environment. There's also dog camps, which are like a summer camp for people. You get to take your dog with you.

WHITFIELD: And so when it's for people as well, you really are trying to craft your vacation around your pet because, you know, you are trying to do some activities that your dog can enjoy as well, like what?

KAIN: That's right. All kinds of activities like agility. They can have obedience training, tracking, even search and rescue and other -- all kinds of things. Games like dancing with your dog, painting with your dog, learning how to make homemade cookies and all kind of...

WHITFIELD: Painting with your dog?

KAIN: Yeah, they have some special, safe, nontoxic paint they put on the dog's paws. The dog can walk around on the paper or do whatever they want.

WHITFIELD: If you dare to venture to do these things with your pet, where do you find these locations? Are they geographically specific, or what?

KAIN: Well, for the dog camps, you mean?

WHITFIELD: Yes.

KAIN: Yes, the dog camps, actually, the good news is they are all throughout the country and Canada. Anywhere from California to New York, Michigan, down to Texas, North Carolina, and pretty much everywhere in between. It's pretty good geographical range.

WHITFIELD: How much can you expect to pay? Are we talking a few hundred dollars, or are we in the thousands?

KAIN: We're getting up higher. Start up to $300 to $1,000 for a three-day weekend per person.

WHITFIELD: So that's pet and people?

KAIN: Exactly. That's usually one- or two-dogs per person. If you have a week-long camp it's about $1500 per person.

WHITFIELD: Wow. Well, people love their dogs. So, you know, dogs will appreciate these little treats as well.

KAIN: Yes.

WHITFIELD: All right, Tara Kain of DogFriendly.com. Thanks very much.

Of course, folks can visit your Web site to get other ideas on how to be all inclusive with your four-legged friend.

KANE: Thank you.

WHITFIELD: Whether it's saving money on vacations involving your pets or maybe saving money on healthcare costs, it's all there on "DOLLAR $IGNS" today. Today it's shopping for health insurance. And what to do with those bills if perhaps you don't have medical insurance, but you have medical bills.

Whether you are unemployed or small business owner, do you know what to do? We'll take your calls and get answers to your e-mails. DollarSigns@cnn.com is the Web site. 1-800-807-2620 is the phone number. That's at 4:30 Eastern Time.

Coming up next, sex, lies and videotape.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Everybody does it. Every intelligence service utilizes sex in some capacity.

(END VIDEO CLIP)

WHITFIELD: A closer look at the undercover sex-pionage business.

(COMMERCIAL BREAK)

WHITFIELD: It's a move chess champ Bobby Fischer couldn't get himself out of. Japanese authorities detained Fischer at Tokyo's International Airport. They say Fischer violated immigration laws. Fischer is also a fugitive from the U.S. He's accused of violating international sanctions during the Balkan Wars in 1992, by attending a chess match in the former Yugoslavia.

Sex and espionage have teamed up for some great Hollywood movies. And during the Cold War, the two were closely linked. But is that still the case? CNN's David Ensor takes a closer look at the role sex plays in the spying game.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: You're one of the most beautiful girls I've ever seen.

UNIDENTIFIED FEMALE: Thank you.

DAVID ENSOR, CNN SECURITY CORRESPONDENT: In the classic Hollywood version, it's usually two spies in the bedroom, each trying to entrap the other. Real life may not be so glamorous, but Hollywood is right in this sense, historian Keith Melton told a sell-out crowd at the International Spy Museum. Sex and spies have always mixed.

KEITH MELTON, SPY HISTORIAN: Everybody does it. Every intelligence service utilizes sex in some capacity.

ENSOR: In Moscow hotels, the Soviet KGB did it routinely and filmed the whole thing. Here, two KGB women entice a Spanish diplomat in the '70s, blackmail film designed to induce treason.

MELTON (voice over): When confronted with this. Many diplomats were faced with an ugly reality. Do I accept what I've done in contact security, or do I agree to give some small seeming innocuous piece of information to the KGB?

ENSOR: But it was East German spy chief Marcus Wolf, says Melton, who turned sex-espionage into an art form, finding that women often make more propositioning targets than men. And love works better than blackmail.

UNIDENTIFIED MALE: I want to know when the plane will leave. Where they are going? How many, what type of aircraft will be involved.

UNIDENTIFIED FEMALE: But Victor, that's classified information!

UNIDENTIFIED MALE: If you really love me, you will do this for me.

ENSOR: Agents like Herbert Schroeder were taught to woo, second propose to secretaries like Gerta with access to secrets, and then go to step three.

MELTON: The third thing is, confess that you are indeed an East German agent who came here for another purpose entirely -- but unless, somehow, you can get some information, they're going to recall you, and you're never going to be able to spend your life together. Blatant honesty worked.

ENSOR: And it still does. These more permissive times, blackmail is less effective. But honey traps based on the yearning for real love will always be there.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

Still much more ahead on CNN SATURDAY. "In The Money" at 2:00 Eastern on CNN LIVE SATURDAY.

First, Susan Lisovicz with a preview of "In the Money".

SUSAN LISOVICZ, CNN ANCHOR, IN THE MONEY: Thanks.

Coming up on IN THE MONEY, battleground America. Find out whether the country is really taking sides in fight between Left and Right. Plus, more than skin deep as a new safety standard for cholesterol comes out see if the lower numbers are really necessary. And take a hike, Dad. Pushy parents are grinding the fun out of baseball for kids. We'll tell you what a former major leaguer is doing to help.

All that on and more after this quick check of the headlines.

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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