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CNN WOLF BLITZER REPORTS

Hearings Held on 9/11 Commission Findings; Iraqis Negotiate with Radical Cleric; Iran Denies Helping Cleric; Ambassador Wilson: Bush Should Fire Employees Who Don't Cooperate with Justice Department; D.A. in Michael Jackson Case Argumentative on Stand; Colorado Supreme Court Backs Judge on Kobe Accuser's Sexual History; Scott Peterson Jury Hears Secret Tapes

Aired August 16, 2004 - 17:00   ET

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


WOLF BLITZER, HOST: Happening now: waiting to reach out to loved ones. They are survivors of Hurricane Charley cut off virtually from the rest of the world, and right now they're lining up in their cars, desperately seeking help. Standby for hard news on WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)

BLITZER (voice-over): After Charley, homes are gone. Businesses destroyed. Almost a million are still without power. Despite the fury of the storm, could some of this have been prevented?

On the move, as troops fight for their lives in Iraq, others face a major redeployment.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The world has changed a great deal and our posture must change with it.

BLITZER: In court, Michael Jackson, face-to-face with the man who has pursued him for years.

Kobe Bryant case. Another stunning setback for prosecutors. Will they still go to trial?

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Monday, August 16, 2004.

BLITZER: The storm is now gone but for at least a million Florida residents, the nightmare that started when Charley came to visit continues. Seventeen deaths are now directly linked to the storm. And no one is yet sure just how many people are still unaccounted for; 900,000 Florida customers remain without power and it may be weeks before they're all back on-line.

Authorities have instituted curfews in three counties. And one sheriff says tensions are rising and things are starting to get difficult. And then there's the financial cost. Estimates right now are well over $10 billion. The Florida governor, Jeb Bush, briefing reporters on what's happening. Let's listen in. GOV. JEB BUSH (R), FLORIDA: ... quite got our arms around the scope of this yet. There still will be a state contribution, of course. So we're obviously interested in this as well, as we focus on preparing adjustments to this year's budget, as well as to next year's budget.

But it's a significant commitment. And in addition to that, there's a lot of support, direct support, not just to governments, like the state and the local governments, but the largest amount will go directly to Floridians. And those assistance centers will be the means by which that happens.

QUESTION: Secretary Hood earlier said he was going to be calling election supervisors to determine the feasibility of the August 31st primary, particularly in Charlotte County. Have you gotten more answers there yet?

BUSH: We have, and I'll let Secretary Hood brief you on that. But she did have a very positive meeting. And there's lots of cooperation from the supervisors to help the counties that clearly are going to have some challenges and they need a lot of help.

There are three counties that have not started early voting. All counties but three have begun -- Lee County actually will start tomorrow. Hardee, DeSoto and Charlotte County have not started early voting. They can't start until there is power restored in the official areas or the buildings that have been designated as the place for early voting.

But there's a lot of progress that's been made.

BUSH: And I'm encouraged that the supervisors of elections in the non-impacted areas are prepared to provide support to allow us to go forward. But we'll let Linda perhaps give you more information.

LINDA LONG, FLORIDA DIVISION OF EMERGENCY MANAGEMENT: Thank you, Governor. I did have a conference call with over 60 of our supervisors of elections today. I'm pleased to report that their offices and all the infrastructure appear to be fine on their initial assessment.

They reported that polling places are still being surveyed, no equipment damage has been reported. No problems with voter registration systems have been reported. No damage to ballots have been reported.

As the governor said, they are very focused on the early voting for the August 31 primary right now.

And, Governor, in fact, I even have a more recent update. Hardee County with backup generator is going to be begin early voting. So they are taking care of that challenge. And I know that Charlotte and Hardee are also focusing on that.

BLITZER: All right, we're going to break away from this news conference in Florida, continue to monitor it, obviously, for our viewers. Clearly all sorts of unforeseen problems as a result of Hurricane Charley, including the elections and the new voting procedures under way in that state. We'll continue to follow that story for our viewers.

Certainly while the winds have died down and the fury of the storm has passed, the burden facing those residents who were in Charley's path is only now just beginning. CNN's John Zarrella has been at ground zero of this storm, mainly Punta Gorda, since shortly before Charley passed through. He is still there, he's joining us now live -- John.

JOHN ZARRELLA, CNN CORRESPONDENT: Wolf, I guess you would say there's a bit of good news, a little silver lining here in that the search and rescue efforts are beginning to wind down, and it appears -- let me emphasize, it appears that those worst fears of many casualties will not be realized. Officials here believe that many, in fact, most of those who are still accounted (sic) for simply haven't been able to get to a phone.

(BEGIN VIDEOTAPE)

ZARRELLA (voice-over): For three solid days, urban search and rescue teams have walked every block in Punta Gorda, knocked on every door.

UNIDENTIFIED MALE: Hello? Fire rescue.

ZARRELLA: They've been looking for the missing and the dead.

UNIDENTIFIED MALE: Our mission today is basically accountability, make sure those fatalities...

UNIDENTIFIED MALE: We're the only two here and we're fine, we're fine, yes.

UNIDENTIFIED MALE: How about your neighbors? Do you know if anyone is home?

UNIDENTIFIED MALE: He just left. They're an elderly couple. He and his wife just left. They're fine.

ZARRELLA: There is a growing sense here that fears of dozens of casualties will not be the case. There have already been two complete sweeps of the entire county by federal search teams who...

UNIDENTIFIED MALE: Targeted 31 mobile home parks, went to all the condominiums and other buildings that we knew were compromised, went door to door, room to room, and they've not found anything.

ZARRELLA: Officials here believe people still unaccounted for simply haven't been able to get to a phone.

UNIDENTIFIED MALE: No phones, no power, no water. It just looks like a bomb hit the place.

ZARRELLA: A wireless company set up a mobile phone bank so people could get the word out to worried loved ones. UNIDENTIFIED FEMALE: Can you call John to let him know we're OK?

Yes. Call everybody, tell everybody that we are OK, all right?

ZARRELLA: As word gets out, as one person, then another, makes contact, the number of missing is reduced. Gisela D'Augustino (ph) can finally rest easy. Her sisters in Rochester know she's alive.

(END VIDEOTAPE)

ZARRELLA: Now this is one of the four federal comfort stations, FEMA, Federal Emergency Management Agency comfort stations, that's been set up. Our viewers can see that there are cases and cases of bottled water here, there are staples, cars are pulling up. And as the cars pull up in this line they are given whatever they need. Some MREs, the hot meals. There's a car over in the distance, there's water, there are trucks, there are four semis, five semis loaded with ice, with food, with those heater meals and MREs. And this station is being manned by volunteers and by members of the Florida National Guard who are here.

And it has been literally nonstop here, Wolf. There's a line of four across cars in the distance just waiting to get here. It has been nonstop like this all afternoon. You see everything from toilet paper to plastic wrap to put over the top of holes in the roofs in people's homes that have to be patched. Gallons of Clorox and bleach to clean bathrooms and to clean up and also to use just as sanitation. It is a massive effort that's under way. And Wolf, this massive effort really has come very, very quickly.

Very much unlike what happened in 1992 during Hurricane Andrew, Wolf, when it took days, in fact, weeks to get this kind of help to the people -- Wolf.

BLITZER: All right. Looks like the federal government has learned an important lesson. John Zarrella, thanks very much for that.

And the degree of devastation caused by Hurricane Charley is best seen from above. Here an aerial tour of the aftermath of a killer storm.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): This is where Charley first came ashore, offshore, pounding the barrier islands near Ft. Myers.

UNIDENTIFIED MALE: Every single house along here has just been hit and hit hard.

BLITZER: The eye of the storm hit Captiva Island, pushing a wall of water that split a luxury resort in two, creating a new inlet. Access to nearby Sanibel and Ft. Myers Beach is cut off, so is power and water. It may be many days before either is restored.

The worst damage came as the storm moved inland. Just miles to the northeast, an arena is torn apart in Arcadia. But hardest hit were Port Charlotte and the retirement community of Punta Gorda, labeled ground zero by Florida's lieutenant governor. The hurricane winds reached 180 miles per hour there. And one resident describes the downtown center as a bomb zone.

These aerials show flattened homes and trailer after trailer tossed about.

UNIDENTIFIED MALE: Every house, every mobile home, every car looks like it has had some sort of damage to it.

BLITZER: At the local airfield, planes are grounded, many of them for good.

UNIDENTIFIED MALE: This is one of the command centers. And in every single hangar, every single plane here has some sort of damage.

BLITZER: Even in the area around Winter Haven, right in the center of the state, there was major damage. And as rescuers and insurance adjusters spread across Florida today, 25 counties are now part of the federal disaster zone.

(END VIDEOTAPE)

BLITZER: It is hard to register just what the words mean when a forecaster says 145 miles an hour winds. Reading that or hearing it said is nothing like living through the experience. The old saying a picture is worth a thousand words has never been more true. Storm chaser Jim Reed was in the path of Charley.

(BEGIN VIDEO CLIP)

JIM REED, STORM CHASER: Oh, (EXPLETIVE DELETED). Oh, my God. Oh, my God.

Oh, my God. OK. Right now the time here is roughly 4:37. We are watching a neighborhood disintegrate. This is Hurricane Charley. For the past five minutes or so, we have been experiencing winds in excess of 100 miles an hour. It is tearing off roofs.

Category 4 hurricane. (UNINTELLIGIBLE) right here. (UNINTELLIGIBLE) Charley. (UNINTELLIGIBLE). If you want to know what it looks like inside a category 4 hurricane, this is it.

(END VIDEO CLIP)

BLITZER: Storm chaser Jim Reed, living through that experience and recording it on videotape.

Successfully predicting the path of a hurricane, any hurricane is at best a combination of really good science, but also good luck. Predicting this storm's path, though, turned out to be tough. And when Charley took an unexpected turn to the coast, it caught many residents by surprise. CNN's Brian Todd is here. He is picking up that part of the story -- Brian. BRIAN TODD, CNN CORRESPONDENT: Wolf, it seemed all weekend we were hearing from residents of the southern part of Florida's west coast saying they were caught off guard. It led us to take a look at some key questions regarding Charley's path and what was said before and after the storm hit.

(BEGIN VIDEOTAPE)

TODD (voice-over): Amid the stories of homes devastated, lives shattered by a monster hurricane, words of recrimination from people who hadn't thought they were directly in Charley's path, like these residents of Punta Gorda, Florida.

UNIDENTIFIED MALE: We didn't know where it was turning in at until about an hour away.

TODD: A storm chaser tells CNN he, too, was thrown off by prestorm projections.

REED: Absolutely, and one thing that concerns us is that there was a lot of focus on Tampa.

TODD: You didn't even have to observe closely to notice the abundance of local and network TV resources in Tampa, as Charley approached.

UNIDENTIFIED MALE: And at this point, the forecast track does bring it somewhere into Tampa Bay.

TODD: But you should listen closely to what officials from the National Hurricane Center were saying in the days before Charley came ashore.

MAX MAYFIELD, DIRECTOR, NATIONAL HURRICANE CENTER: And we have hurricane warnings up, not just for western Cuba, but for the lower Keys, and much of the Florida west coast.

TODD: Officials at the National Weather Service remind us those warnings were consistent, serious and issued responsibly in advance.

D.L. JOHNSON, DIRECTOR, NATIONAL WEATHER SERVICE: We issued a hurricane warning when the storm was still south of Cuba, that included the west coast of Florida, as you can see by the graphic here, for a major hurricane. So a full 23 hours out.

TODD: National Weather Service officials and meteorologists tell CNN they draw a so-called cone of uncertainty around a storm's projected path to let people in many far flung areas know they could also be in danger. They admit the course of a storm like Charley, which paralleled the coastline, is harder to predict than a hurricane coming directly at the coast from a 90 degree angle. And they say, Charley's rapid shift in intensity, moving from category 2 to 3 and then 4 very quickly did surprise them.

But given Tampa's development and vulnerability, experts say it was not irresponsible for the news media to send reporters there. JACQUI JERAS, CNN METEOROLOGIST: Well, Tampa was also a very big concern because of the population there. There are a lot more people that live in Tampa. You also have the bay area involved. And you tend to get a little bit more of a funnel effect as that wave of water, that storm surge moves through.

TODD: An official with the National Weather Service does offer one point of regret -- that with Tampa getting so much attention, the message that the entire west coast of Florida was vulnerable may have gotten lost.

(END VIDEOTAPE)

TODD: Officials at the National Weather Service tell us it is very likely they will do what they call a service assessment of Hurricane Charley and their performance up to and during the storm. This does include the National Hurricane Center. They'll look at the meteorology that was used, examine the predictions, the communications with local authorities and residents, the response, the performance of technology, and equipment. The assessment will be comprehensive. It will look at the successes and failures, Wolf.

BLITZER: Literally a postmortem will be undertaken. Thanks very much, Brian Todd, for that explanation.

And while the impact of Charley can be seen very directly on the ground, just look at the wrecked homes destroyed and businesses and downed trees. It's also very visible from space.

For example, here is Punta Gorda on the left before Charley came ashore. And here it is afterwards on the right.

Moving on, President Bush giving new marching orders to tens of thousands of U.S. troops around the world.

(BEGIN VIDEO CLIP)

BUSH: The new plan will help us fight and win these wars of the 21st century.

(END VIDEO CLIP)

BLITZER: More on this major announcement and what it means for the war on terror. I'll speak live with the former defense secretary, William Cohen.

Michael Jackson is back in court. The pop star meeting face to face with the district attorney in his child molestation case.

And another huge blow to the prosecution in the Kobe Bryant case. Will the trial end before it even begins? Will there be a trial? Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. President Bush today announced a major global realignment of United States military forces as the U.S. military moves from fighting communism to fighting terrorism.

But the commander in chief's order has already come in for some sharp criticism.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): It's the most sweeping redeployment of U.S. troops around the world since the collapse of the Soviet Union and the end of the Cold War.

BUSH: Although we'll still have a significant presence overseas, under the plan I'm announcing today over the next 10 years we'll bring home about 60,000 to 70,000 uniformed personnel. And about 100,000 members and civilian employees.

BLITZER: None of those troops will be coming home from Iraq or Afghanistan.

Addressing the 105th annual meeting of the Veterans of Foreign Wars in Cincinnati, the president insisted the redeployment has been in the works for three years and will enable the United States to better fight the war on terror.

BUSH: The world has changed a great deal. And our posture must change with it, for the sake of our military families, for the sake of our taxpayers. And so we can be more effective at projecting our strength and spreading freedom and peace.

BLITZER: Most of the departing troops will come from Germany and other NATO countries in Western Europe, as well as South Korea and Japan.

BUSH: America's current force posture was designed, for example, to protect us and our allies from Soviet aggression. That threat no longer exists.

BLITZER: It didn't take long for top advisers to Democratic presidential nominee John Kerry to blast the president's decision.

RICHARD HOLBROOKE, FORMER U.S. AMBASSADOR TO U.N.: There is no question in my mind that this will weaken our national security. I was ambassador to Germany. I know that the Germans are very unhappy about these withdrawals. The Koreans are going to be equally unhappy.

BLITZER: Holbrooke warned that withdrawing large numbers of troops from South Korea sends the wrong message to North Korean leader Kim Jong-il, just as this country is engaged in delicate negotiations to end the North Korean nuclear bomb program.

Another Kerry adviser, former NATO supreme allied commander Wesley Clark, added this.

GEN. WESLEY CLARK (RET.), FORMER NATO ALLIED SUPREME COMMANDER: It's a move that doesn't make any sense militarily, because they're just as flexible where they are in Germany. And in fact, most of those troops right now are in Iraq or just returning from Iraq. (END VIDEOTAPE)

BLITZER: Senator Kerry will be able to make his case directly to the Veterans of Foreign Wars when he addresses that group on Wednesday.

So is moving the troops the right move? Joining us now, our world affairs analyst, the former Defense Secretary William Cohen. What's your bottom line assessment on the president's announcement today?

WILLIAM COHEN, FORMER DEFENSE SECRETARY: Well, this is not something that's new. This has been coming for some time. It was under study in the final -- or the early phases even during my tenure at the Pentagon.

Joe Ralston, former vice chairman of the Joint Chiefs, also supreme allied commander in NATO, also was looking at ways in which they could reduce some of the presence in Western Europe and put them closer to the Caucus region. So this is not something that is radical in terms of just coming out; this has been in the planning stages for some time.

You have to look at it in three ways -- strategically, economically and politically. Strategically, it makes some sense to have troops closer to the potential flashpoints. From an economic point of view, we have to look at it very closely, because it may cost us more ultimately in trying to build up the infrastructure of new bases in some of the new NATO members as opposed to where we are now.

And then politically, you have to take into account what the reaction is going to be on the part of the Germans and others. So right now, I think it makes sense to start talking about it, examining it, presenting it to the Congress and allowing a full debate on the issue.

BLITZER: There are a lot of people, especially in Germany, who think this is political payback for the German government's refusal to support the Bush administration in going to war against Saddam Hussein.

COHEN: Again, the initial phases of this examination were well under way prior to 9/11. So it had very little to do with Germany's refusal to participate in Iraq. And so I wouldn't ascribe any political motivation to it. It really is a question of should there be some reduction and redeployment of forces. The numbers remain to be debated. But putting them closer to potential flashpoints is something that has to be actively considered.

BLITZER: What about the argument that this is politics, coming only two and a half months before the election -- in the key battleground state of Ohio, the president goes ahead and makes this announcement. What do you make of the timing of this?

COHEN: Well, first of all, nothing's going to happen in the short term. We're talking about anywhere from four to six or 10 years. So there's going to be no immediate reduction anywhere, so no troops are coming home from Europe. And so the politics of it seem to me coincidental, although there are very few coincidences in politics.

But frankly, the BRAC (ph) process, the base reduction and closure commission really has to -- you have to have this process in place. And the members of Congress are going to be very concerned about whether or not you're bringing troops home, whether their bases should be closed or not. So the president really had no alternative but to present this in preparation for next year. So it happens to coincide with the political campaign, but I think there are other factors involved.

BLITZER: Finally, there is no threat to Western Europe from the Soviet Union since the Soviet Union no longer exists. But there is a threat still to South Korea from North Korea. The decision to pull out, what, 12,000 or 14,000 troops at this time from South Korea, what do you make of the argument that we heard from Holbrooke and General Clark that this sends the wrong signal to Kim Jong-il?

COHEN: Well, again, militarily, it will not decrease our capabilities significantly in working with the South Korean forces. But it does raise some issues in terms of how this is going to be read. It will be read -- it could be read by the North Koreans as a sign of the United States slowly pulling out.

But secondly, I think we have to consider the implications for Japan. We have a much larger presence in Japan and a good deal of the rationale for that presence in Japan also is to reinforce the forces in South Korea. So it may set in motion a concern on part of the Japanese that perhaps they should have a comparable reduction, or it may signal that perhaps they should do more to take care of their own national security interests.

But it is something we have to look at. I don't want to use the word "sensitively," but we ought to look at very cautiously in dealing with our Japanese allies as well as our South Korean friends.

BLITZER: All right, just to reaffirm, that the 140,000 or so U.S. troops in Iraq, and another 15,000 or so still in Afghanistan, they're staying put for the time being.

COHEN: They're not coming home, and the people, our soldiers, who are now currently deployed along with their families throughout the European theater are not coming home in the near term.

BLITZER: William Cohen, as usual, thanks.

COHEN: Thank you.

BLITZER: And here to our viewers, you have a chance to weigh in on this very important story. Our Web question of the day is this -- will realigning U.S. troops help in the war on terror? You can vote right now. Go to Cnn.com/wolf. We'll have the results for you later in this broadcast.

There's been a major ruling in the Kobe Bryant case. Will jurors hear details of his accuser's sexual history?

He's a Bush critic whose wife was outed as a covert CIA operative. Joe Wilson, the former acting ambassador at the center of the spy scandal, he'll join me next.

Plus, an alleged find literally of biblical proportions. What archaeologists are saying about a new discovery.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Violence continuing on the streets, but there's new proof democracy is alive in Baghdad. We'll have an update from Iraq just ahead.

First, though, a quick check of some stories now in the news. Thousands of emergency workers are distributing food, water and other supplies in storm-ravaged Florida. Hurricane Charley killed at least 17 people and caused damage estimated right now at more than $10 billion. Hundreds of thousands of households remain without power.

The U.S. embassy in Baghdad says it is looking into the fate of a journalist who's apparently gone missing in Arabic -- in Iraq. The Arabic language Al Jazeera television network says Mika Guerin (ph), who holds dual French and American citizenship, was kidnapped in Nasiriya.

And archaeologists excavating a cave near Jerusalem are making what they say is a sensational and controversial claim.

They say they discovered evidence that the cave was used by John the Baptist to baptize many of his followers. Other scholars are already disputing the findings.

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

On Capitol Hill today, three congressional committees held hearings on intelligence reform. Our congressional correspondent, Ed Henry, is covering the story for us. He's joining us now live with details -- Ed.

ED HENRY, CNN CORRESPONDENT: Good evening, Wolf.

Congress will hold even more hearings on the 9/11 Commission's final report later this week, but some prominent lawmakers are starting to raise questions about whether Congress is just spinning its wheels.

(BEGIN VIDEOTAPE)

HENRY (voice-over): The hearings keep coming. By the end of this week, Congress will finish 20 sessions on the 9/11 Commission's final report. But one Democrat questions whether Congress is getting anywhere or just looking busy in an election year.

SEN. RICHARD DURBIN (D), ILLINOIS: Is the intelligence community ready for reform? If it isn't ready for reform, are we kidding ourselves here? Are we going through a political exercise, moving nameplates around?

HENRY: Three former CIA directors deflected the question. One of them pointed the finger back at Congress.

STANSFIELD TURNER, FORMER CIA DIRECTOR: Changing these boxes will help some, but it's not the solution. The solution is with you. Are you interrogating these people when they come up and finding out if they really can back up what they're saying?

UNIDENTIFIED MALE: Admiral...

HENRY: Another key senator warned of grave consequences if Congress caves in to the Pentagon and does not give enough power to a national intelligence director.

SEN. JAY ROCKEFELLER (D), WEST VIRGINIA: So we're going to have to break some china around here. Otherwise we will fail. We will fail. We will do little bits and pieces, and we will be like Congress has so often been. The American people need real reform.

HENRY: But allies of the Pentagon are already digging in, saying the Defense Department should not cede its control of 85 percent of the intelligence budget.

JOHN HAMRE, FORMER DEPUTY DEFENSE SECRETARY: You can't help but have that become a source of great friction over time. And I think that would not be healthy.

(END VIDEOTAPE)

HENRY: That tension will grow on Tuesday when Defense Secretary Donald Rumsfeld comes up to Capitol Hill to testify.

Rumsfeld will be walking a very fine line. He does not want to give up too much of the Pentagon's turf, but he knows that his own boss, the president, has already endorsed the idea of a national intelligence director, Wolf.

BLITZER: All right. We'll see how they manage to divide that -- explain that split between the president and the defense secretary. We'll have coverage of that tomorrow here on CNN. Thanks very much, Ed Henry.

In Iraq, U.S. forces continuing to battle supporters of the renegade Shiite cleric Moqtada al-Sadr.

In Baghdad, a U.S. tank crew had the worst of it, losing their vehicle to an explosive device but escaping with minor injuries, according to the U.S. military.

Iraqi officials, meantime, are trying to end the showdown with a Najaf-based cleric. CNN's John Vause has the story from Baghdad.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: With the ongoing violence in Najaf, delegates at a national conference here in Baghdad have called on Moqtada al-Sadr and his Mehdi militia to lay down their weapons and leave the Imam Ali mosque and join the political process.

To back that up, they're sending a delegation of 21 people to Najaf to negotiate directly with al-Sadr. A spokesperson called the Shiite cleric says he will welcome that delegation when it does arrive.

This is the second day of that national conference. They're there to elect a 100-person interim assembly to advise the Iraqi interim government in the lead-up to elections next year. That vote was put off till tomorrow.

There are expected to be arguments and disagreements. Many delegates aren't happy with the selection process of just how that body will be elected.

John Vause, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: So what or who are behind the meteoric rise of the cleric Moqtada al-Sadr? CNN's Zain Verjee been looking into that question. She's joining us now live from the CNN Center in Atlanta -- Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, bloody battles in Najaf have forced many to ask whether Moqtada al-Sadr is his own man or if he's just being exploited by a regional power to further its own interests.

There are two competing views.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): Could Iran be involved in instigating bloody battles in Najaf? The U.S. says it's concerned about allegations like this, adding a stable Iraq is in Iran's best interests.

ADAM ERELI, STATE DEPARTMENT SPOKESMAN: Iran should use its influence toward that objective and not to take any actions that would be destabilizing.

VERJEE: Iran says since the war in Iraq, its policies have been positive and constructive. And the situation in Najaf today is a result of poor American policies.

Political analysts critical of Tehran don't agree.

MICHAEL RUBIN, AMERICAN ENTERPRISE INSTITUTE: Iran doesn't want a stable democracy in Iraq. It would set a bad precedent in Iran.

VERJEE: And they blame Iran for al-Sadr.

RUBIN: Iran is basically the lifeblood of Sadr, financially, materially and with regard to military and intelligence advice.

VERJEE: The Iranian government rejects that and tells CNN, "Iran does not support Moqtada al-Sadr financially and has never done so."

A U.S. State Department spokesman confirms to CNN that al-Sadr is getting money from Iran, but it's unclear whether the money is coming from official government sources or from wealthy individuals.

Over the years, Iran has supported many competing groups in Iraq, hedging its bets to retain influence, say experts. But that doesn't necessarily mean instability in Najaf is Iran's fault.

It's possible that there's some Iranian involvement, but certainly this is not Iran stirring the punch. Moqtada al-Sadr's movement is primarily a movement among the Shiite urban tora (ph), and it's a popular movement.

VERJEE: And supporting Sadr may not be in Iran's interests.

SHAUL BAKHASH, GEORGE MASON UNIVERSITY: He's unpopular in Iraq, as he is with many of the Shiites which Iran supports. He's a troublemaker; he's unreliable.

VERJEE: Sadr himself has been described as a charismatic leader who operates with a savvy group of advisers. Some say Sadr doesn't need Iran.

Analysts say pressure on Iran to effect regime change and give up its suspect nuclear weapons program is motivating Tehran's political calculations in Iraq and its military calculations.

Iran just tested a medium rage missile two weeks after Israel tested its Arrow 2 missile.

(END VIDEOTAPE)

VERJEE: Analysts also say, Wolf, Iran may use its influence in Iraq as a bargaining chip over its nuclear program.

The Iranian Foreign Ministry, for its part, says there is no connection between the developments in Iraq and its own nuclear program -- Wolf.

BLITZER: Zain Verjee, thanks very much for that report. Zain Verjee at the CNN Center in Atlanta.

Let's switch gears now. We're joined by Joe Wilson, the former acting U.S. ambassador in Iraq. His wife's identity as an undercover CIA officer was leaked shortly after Wilson criticized the president's claim about Iraqi efforts to obtain uranium from Africa.

Joe Wilson, thanks very much for joining us.

JOE WILSON, FORMER AMBASSADOR TO IRAQ: Good to see you, Wolf.

BLITZER: There's been a fascinating -- from my perspective -- very worrying turn in the investigation that the U.S. government is now undertaking, namely going after journalists who may know something and trying to force them to testify against their wishes before this grand jury in Washington about confidential sources.

You're at the center of this entire investigation. I wonder what's going through your mind as you see this turn?

WILSON: Well, first of all, of course the crime that they're investigating is the crime against the United States, not against Joe Wilson or my wife, Valerie Plame, Valerie Wilson, actually. But you're right, it is troubling.

The fact of the matter is, it seems to me, this ought to be looked at as a national security issue, rather than a First Amendment issue.

The president said in October of last year, 2003, that he wanted his staff to cooperate fully and provide timely information to the Justice Department. The Justice Department asked employees around the president to sign waivers, releasing journalists from their obligations to protect their sources at this particular matter. Many of them did not do so on the advice of attorneys.

Now, it is absolutely true that they have the right against self- incrimination, but that does not guarantee them to continue to be in the employ of the president of the United States and to continue to have security clearances.

Now, there have been three leaks in the last view: one of Valerie, one of Iranian codes, effectively breaking the Iranian codes and the third one of this double agent that you interviewed Dr. Rice on last week.

The ship of state is leaking like a sieve. And this is affecting our national security.

BLITZER: You're referring to Mohammed Naeem Noor Khan, the Pakistani who apparently had been flipped. But that's another issue.

Let's get into the whole issue now of how far you believe the federal government should go. Matt Cooper, our colleague from "TIME" magazine, our sister publication. He's now being threatened he'll go to jail if he doesn't testify about confidential sources.

Should he be forced to do so?

WILSON: Well, in my judgment, anything that further circumscribes the press' ability to do its job is regrettable. But I have no say over that. That is a legal matter. I'm not a lawyer.

As a national security measure, however, the president really needs to enforce his own edict on his staff that they cooperate fully with the Justice Department. Signing these waivers releasing the press from their obligations to protect their sources' confidentiality, is a good way of getting started on that. BLITZER: Well, we know that the chief of staff to the vice president, Scooter Libby, has released Tim Russert from any obligations and Glenn Kessler of the "Washington Post," because they went ahead and voluntarily agreed to be interviewed by the federal prosecutors.

WILSON: That's right. And I think that's a good precedent. And I think the president should insist that all of his senior staff, everybody at the Justice Department that's interested in having waived, should sign that waiver as a condition of further employment with the U.S. government.

BLITZER: Correct me if I'm wrong, but Scooter Libby, Lewis Libby, he was one of those you suspected of having leaked the name of your wife.

WILSON: Well, it's not so much that I suspected; it's what a lot of people told me about how this -- this effort to do an intel op against me was created and was put together.

BLITZER: But you now accept his -- that he had nothing to do with this?

WILSON: No, not necessarily. No, I don't accept or reject anything. I would like to see the president get to the bottom of this, as a national security matter.

And waiving -- getting to get his staff, as a condition of ongoing employment, to waive confidentiality is a good first step. And the precedent was established with Mr. Libby having waived that right for Russert and for Glenn Kessler.

BLITZER: To prove criminality, you have to prove -- you have to prove that they intended to undermine the national -- that they knew it was a violation to release her name. Is that right?

WILSON: Well, that's something that the lawyers and the judge and the jury will decide. The Intelligence Identities Protection Act I believe does have that intent clause in it. There are a number of other statutes, I believe, that may be germane to this case, as well.

But irrespective of that, the national security of the country has been breached on three occasions in the last year. It is time for the president to call on his staff to cooperate fully and to force them to do so by making it a condition of ongoing employment.

BLITZER: All right. Well, we know that the president has urged everyone to cooperate, but you want him to go one step further and insist that all reporters who are bound by confidentiality are no longer bound by that.

WILSON: He instructed his staff to cooperate fully with the Justice Department. The Justice Department asked them to waive the confidentiality agreement with reporters.

A number of them had decided not to, which is their right against self-incrimination. But that does not guarantee them, nor should it give them continued employment where they have security clearances and operate close to the president of the United States.

BLITZER: All right. We'll continue this conversation. Joe Wilson, thanks very much for joining us.

WILSON: Thanks, Wolf. Good to be with you.

BLITZER: Colorado Supreme Court weighing in on the Kobe Bryant rape case. What the decision could mean to the defense and the prosecution.

And Scott Peterson and his mistress talk about his wife's disappearance. Jurors hear new taped phone conversations.

Plus, it's the first U.S. medal in this sport in two decades. A complete wrap of all of today's Olympic action in Athens. That's coming up.

First, though, a quick look at some other news making headlines around the world.

An Israeli missile attack kills two in Gaza. Israeli military sources say the men were setting up a rocket launcher near Gaza City.

And in Nablus, Israeli troops say they discovered and destroyed an explosives lab. Palestinian witnesses say troops shot and killed an unarmed man.

In Caracas, Venezuela, president Hugo Chavez has apparently survived a recall vote. With most votes counted, 58 percent of Venezuelans say the president should finish out his term.

And from Portsmouth Harbor, southwest of London, news of an amazing archaeological find. The bow of king Henry VII's main warship, the Mary Rose, has been uncovered by divers. Sunk by the French in 1545, it was the king's most important warship. Much of the ship was raised earlier and is preserved in a museum.

And that's our look around the world.

(COMMERCIAL BREAK)

BLITZER: A major victory for Kobe Bryant and another setback for the prosecution as the Colorado Supreme Court weighs in on the closely watched rape case.

Our national correspondent, Gary Tuchman, is in Eagle, Colorado.

He's joining us now live with details. Actually, Thelma Gutierrez is joining us right now first before we go to Gary Tuchman.

Thelma, I want you to brief our viewers, update us on the latest developments in the Michael Jackson case.

THELMA GUTIERREZ, CNN CORRESPONDENT: Hi there, Wolf. Well, the mood in the courtroom definitely took a heated turn today, with the judge admonishing District Attorney Tom Sneddon, saying that he was being argumentative as he was being questioned.

Now, all the while Michael Jackson sat in court with his defense team. He stared down the man who is trying to prosecute him.

Jackson is not under court order to attend the preliminary hearing, but he, his parents and brothers and sisters came to confront Sneddon, saying that Sneddon has a personal vendetta against Jackson.

Each time Jackson walked in and out of that courtroom, his fans, about 100 or so out here, began to chant his name.

Now, in court, criminal defense attorney Tom Mesereau is trying to establish that the D.A., Sneddon, violated attorney/client privilege by seizing evidence, videos, letters and files from the office of a private investigator, an investigator who was working for Jackson's former attorney, Mark Geragos.

And they say that if, in fact, that is proven, that all of that evidence that was seized should be ruled inadmissible.

(BEGIN VIDEO CLIP)

ARTHUR BARENS, CRIMINAL DEFENSE ATTORNEY: If you eliminate the evidence you eliminate the case. And we get back to a situation where they can't go forward. If major parts of their evidence are stricken or inadmissible by a ruling of the judge, there is no prosecution case.

(END VIDEO CLIP)

GUTIERREZ: The preliminary hearing is expected to go through the end of the week. And Michael Jackson has told people here that he will not be coming back tomorrow.

Back to you.

BLITZER: All right. Thelma Gutierrez, thanks very much.

Let's head out to Eagle, Colorado now. Gary Tuchman is following the latest developments in the Kobe Bryant case.

Gary, tell our viewers what's happening on that front.

GARY TUCHMAN, CNN CORRESPONDENT: Well, Wolf, if Kobe Bryant wasn't accused of sexual assault, he would likely be on the U.S. Olympic basketball team in Athens right now, and they certainly could use him. Instead he's getting ready for his trial, which is scheduled to start a week from this Friday.

Today he received some news he had hoped for. The Colorado Supreme Court has rejected a prosecution appeal about a very important issue. Last month the judge inside this building, Terry Ruckriegle, ruled that the accuser's sexual history in the 72-hour period surrounding the time she was with Kobe Bryant will be allowed to be talked about during the trial.

Today the Colorado Supreme Court said it will not get involved, so it will be allowed in the trial, if there is a trial. That's still a big if. That's because the personal attorneys have filed a civil suit. They have said they're considering not having her going forward with the case, which would make it hard for the prosecution to do so.

Meanwhile, the prosecution earlier this week told the judge they want an indefinite delay in the criminal case because of the disarray. And just yesterday the judge ruled there will be no delay.

The prosecution is telling us today they are still prepared to go forward with this case. Jury selection begins on the 27th of August, a week from Friday, as we said.

One thousand prospective jurors will be coming into this building behind me. That's one out of every 42 people who live in this jurisdiction. One out of every 42 men, women and children and, of course, the children won't be showing up.

Wolf, to you.

BLITZER: All right, Gary Tuchman. We'll see if that process actually winds up going forward.

In California, jurors in the Scott Peterson murder case are hearing more recorded conversations between Peterson and his former mistress, in which they talk about the disappearance of his wife, Laci.

CNN's Ted Rowlands, he's covering the trial for us in Redwood City -- Ted.

TED ROWLANDS, CNN CORRESPONDENT: Wolf, jurors have now heard more than ten hours of these taped conversations that Amber Frey taped, helping out police during their investigation. And that process continues this afternoon.

Much of today's tapes have consisted of Frey confronting Peterson about his lies and trying to get more answers from him.

At one point Frey in the courtroom broke down as she listened to herself go through the pain of trying to -- telling Peterson how painful the entire episode has been.

Every time Amber Frey tries to get Peterson to open up and tell her more, he says he can't say anything until there's a resolution in the case.

(BEGIN VIDEO CLIP)

GLORIA ALLRED, AMBER FREY'S LAWYER: What if he believed that Laci would never be found? What if he believed that she was at the bottom of the bay? Then he would never have to explain himself out of the many lies that he had told to Amber?

(END VIDEO CLIP)

ROWLANDS: At one point Laci Peterson's mother and stepfather got up and said they had heard enough of these tapes. It's expected that jurors will have to hear another day of them before the defense cross- examines Amber Frey -- Wolf.

BLITZER: CNN's Ted Rowlands, covering the trial for us. Thanks, Ted, very much.

Going for the gold. Can U.S. swimming phenom Michael Phelps capture Mark Spitz's Olympic medal record? A wrap of all of today's action in Athens, that's coming up.

First, though, our "Weekend Snapshot."

(BEGIN VIDEO CLIP)

BLITZER (voice-over): Officials in northern California predict a wind driven wildfire that tore through the town of Reading will not be fully contained until Friday. The blaze has torched 9,000 acres and destroyed more than 20 homes.

A final ovation. Services were held for singer Rick James in his hometown of Buffalo, New York. Thousands of fans turned out to pay tribute to the pop icon. James died in his sleep last week at his home near Los Angeles.

The king of rock 'n' roll remembered. Fans lined up along Elvis Presley Boulevard in Memphis for a chance to file past the grave of the legendary rocker. Presley died of a drug overdose 27 years ago today.

Stroke of good fortune. Vijay Singh birdied the first hole of a three-hole playoff to win the '86 PGA tournament at Whistling Straits. It was Singh's third major in his career and fifth victory this year.

And that's our "Weekend Snapshot."

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BLITZER: It's day three of Olympic competition in Athens, where more than 10,000 athletes from around the world are going for gold.

We're about to show you some of today's results. If you want to wait to see tonight's television coverage, you might want to turn down the sound on your TV right now.

(BEGIN VIDEO CLIP)

BLITZER (voice-over): In swimming, the end of Michael Phelps' quest to tie Mark Spitz's record seven gold medals. Phelps came in third in the men's 200-meter freestyle, with Australia's Ian Thorpe, a star of the Sydney games, taking the gold, his second so far in Athens.

Better news for Phelps' teammate, Aaron Piersol. He took gold in the 100-meter backstroke, while American Natalie Coughlin won the same event on the women's side, missing her own world's record by just under 0.8 of a second.

In men's 73K judo, James Pedro tied for bronze.

Meanwhile, in basketball, the former Dream Team might be hoping its match with Puerto Rico was just a bad dream. The U.S. lost by 19 points.

But for the U.S. women's softball team, a third straight shutout, beating Japan 3-0.

(END VIDEO CLIP)

BLITZER: And just over an hour ago, the U.S. men's gymnastic team captured silver, the first American medal in that sport in 20 years. Japan took the gold.

Keeping a steady eye on the ball, one Olympians' intense focus is our "Picture of the Day."

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our Web question of the day. Remember, this is not a scientific poll.

If photos win Olympic medals, this one would be a contender. An A.P. photographer captured this Canadian athlete, here eye squarely on the ball while serving up table tennis in the women's singles first round.

"LOU DOBBS TONIGHT" starts right now.

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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