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CNN LIVE AT DAYBREAK

Russia Talking Tough Against Fighting Terrorism; Growing Pressure on Congress to Pass Intelligence Reforms

Aired September 8, 2004 - 06:00   ET

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


CAROL COSTELLO, CNN ANCHOR: Russia is talking tough against fighting terrorism this morning and officials are putting their money where their mouths are.
It is Wednesday, September 8.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, Russia says it's ready to launch preemptive strikes on what it calls terrorist bases anywhere in the world. Russia's security service is offering more than $10 million for information on Chechen rebel leaders it says were behind that deadly school hostage incident.

You heard the explosions in Iraq this morning. They're lighting up the sky over Fallujah. The Iraqis say U.S. warplanes have been pounding the city overnight. A doctor in Fallujah says at least six Iraqis have been killed.

$2 billion worth of disaster relief. That's what Florida has coming. President Bush plans to sign the measure this morning before a trip to the storm ravaged state. I'll talk to the head of the Red Cross about the needs there in Florida in just about nine minutes.

And finally, bringing a piece of the sun back to earth. Later today, helicopters will snatch NASA's returning Genesis specific over Utah. Genesis has been collecting particles that stream from the sun.

To the forecast center and Chad, who's now watching Ivan.

CHAD MYERS, CNN METEOROLOGIST: We're collecting particles that stream from the clouds -- rain drops. My goodness, the rain drops are everywhere.

(WEATHER REPORT)

COSTELLO: Russia is talking tough this morning. In an effort to prevent the kind of terror that happened inside that elementary school. It is prepared to preemptively strike terrorists anywhere in the world. As for that eerie videotape taken inside the school, we know a little bit more about it.

Let's head to Moscow now and CNN's Ryan Chilcote -- hello, Ryan.

What can you tell us?

RYAN CHILCOTE, CNN CORRESPONDENT: Hey, Carol.

Well, we'll start with the statement about the preemptive strikes. That came from the head of the general staff. His name is Yuri Baluyevski. He told that to reporters earlier in the day. What he specifically said was that Russia was ready to use preemptive strikes against terrorists wherever they are in the world to liquidate them, but that that did not include the use of strategic weapons. It was a very interesting statement.

We have heard the Russians say something similar to that in the past. That was about a year ago when the Russian government was complaining that Chechen rebels, Chechen fighters were infiltrating Russian territory from the nearby country of Georgia. So this is not a first, but it is interesting that he is saying this.

Now, the second measure that the Russian government announced today, part of their new offensive in the war on terror, if you will, for Russia, is that the Russian Federal Security Service is now going to offer an award of 300 million rubles -- that's about $10.3 million -- for, to anyone who can provide any kind of information that would lead to the, as they put it, the neutralization of Chechen rebel leader Baseyev or Chechen rebel leader Aslan Maskhadov. So anyone who can provide the Federal Security Service with information that would lead to the neutralization -- that in Russian military speak means the death of or the capture of either of these two rebel leaders, Shamil Baseyev, who has been tied to the attacks, the attack in Beslan, or Aslan Maskhadov, would get, according to this new Russian policy, as much as $10.3 million -- Carol.

COSTELLO: And, Ryan, I want to talk more about this videotape, sort of a home video that was taken inside the school while the hostage crisis was going on. We know a little bit more about that. Matthew Chance reported earlier that the hostage takers actually shot that video and then threw it out the window.

Can you tell us any more?

CHILCOTE: That's right. We have no official confirmation that that is the same tape that we learned about on day one of the siege. That was Wednesday of last week. But then we knew that the hostage takers had shot some video and thrown it out the window and passed it on, in so doing, to Russian officials. What we didn't know was on -- what was on that tape. We knew the Russian officials had seen it, but they did not share it with the press. Perhaps this Russian TV station that has it now got it from Russian officials.

But what we now know -- and a lot of this is coming from both that video and from Russia's chief prosecutor, General Ustinov, who met with the Russian president today -- is a lot more than what we knew certainly when this began.

What the prosecutor was saying is that these militants you see in that video gathered in the forest near the town of Beslan. There were a bit more than 30 of them; 32, to be exact. They used three cars to get to the school, according to the Russian prosecutor. On their way to the school, they came across a policeman who offered some kind of resistance. There was some kind of firefight between them and they moved on.

Now, the leader of this group, according to the prosecutor, called himself "The Colonel." And apparently when "The Colonel" moved in with these 31 other fighters into the school's courtyard, he ordered all of his men and women -- Russian officials saying that two of the individuals that were part of this group were actually female suicide bombers -- ordered them to seize the school. And apparently very early on there was some dissatisfaction, this coming from Russian officials, among some of the hostage takers, that they were being told, they were being ordered to seize a school.

And to squash, if you will, those, that dissatisfaction, that dissent from within his group, Russian officials are saying that this man who identified himself as "Colonel" then killed one of his own fighters to put the others in fear. He then, a short while later, blew up the two female suicide bombers -- this all according to Russian officials -- because they were offering resistance to their plan of seizing this thing.

And lastly, and this is the most important thing, the Russian officials are now saying it was when these militants were trying to rearrange their bombs inside that school gym -- if you look at that video carefully, you can see that there were three wires hanging between the school gym's two basketball hoops. And it was when they were trying to rearranging that setup of bombs that the first blast went off. That was what ended the siege on Friday. That's what began the fighting.

That's what they're saying today, it was an accident. The hostage takers were just trying to rearranging their bombs and detonated the first one by accident. And, of course, that led in the events that followed to the death of hundreds of people, including many children -- Carol.

COSTELLO: Ryan Chilcote reporting live from Moscow this morning.

Thank you.

As we approach the 9/11 anniversary, there is growing pressure on Congress to pass intelligence reforms. President Bush meets with key law makers about three hours from now to tell them what he wants done.

CNN congressional correspondent Joe Johns has more for you.

(BEGIN VIDEO TAPE)

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT (voice-over): With time running out to act on the 9/11 Commission's recommendations before Congress breaks for the election, Republican Senator John McCain and Democrat Joe Lieberman, two key players on national defense and security issues, unveiled legislation that addresses all the commission's proposals.

SEN. JOHN MCCAIN (R), ARIZONA: The recommendations of the 9/11 Commission have been embraced by virtually one and all, clearly with some reservations because it's not a perfect document but overall the overwhelming majority of Americans expect that we should act on this blueprint.

SEN. JOE LIEBERMAN (D), CONNECTICUT: The commission's recommendations should be our starting point and I believe in many cases, probably most, they should be our ending point as well.

JOHNS: The bill would create a new National Intelligence Director and National Counterterrorism Center. It would strip power from the Pentagon over 80 percent of the nation's intelligence budget, improve information sharing throughout the intelligence community, set up a terrorism screening network at U.S. borders and ensure the protection of civil liberties. The bill won the endorsement of the 9/11 Commission co-chairs.

TOM KEAN, 9/11 COMMISSION CHAIR: This is a dream.

JOHNS: The proposal has bipartisan support but it also faces considerable resistance.

REP. ROY BLUNT (R), MISSOURI: The idea that we would just carte blanche accept everything the commission came up with I personally think would be a big mistake.

JOHNS: But a warning from the bill's backers that the political price for inaction could be severe.

SEN EVAN BAYH (D), INDIANA: For those who would seek to delay, for those who would seek to temporize, the burden will be very heavy.

JOHNS (on camera): The president is meeting Wednesday morning with top congressional leaders on how to proceed with the commission's recommendations. A senior Republican aide says Mr. Bush is expected to outline which proposals he wants Congress to pass and how quickly.

Joe Johns, CNN, Capitol Hill.

(END VIDEO TAPE)

COSTELLO: Turning to Iraq now, keep fighting. The Bush administration says that's the best way to honor the troops killed there. The U.S. death toll in Iraq has now topped 1,000.

White House spokesman Scott McClellan says America will honor its dead by finishing its mission. He's also tying the Iraq conflict to the broader war on terror.

Senator John Kerry is calling the U.S. deaths in Iraq a tragic milestone and one that should never have been reached. In his latest campaign stop, the Democratic challenger says President Bush has made a mess in Iraq. Kerry plans to continue his stepped up attack in a speech in Cincinnati today. In the meantime, President Bush is accusing Senator Kerry of shifting his views on the war yet again.

The vice presidential candidates are also increasing their verbal jabs. At a campaign stop in Iowa, Vice President Dick Cheney suggested the U.S. would be at risk of another terror attack if the Democratic ticket wins in November.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: It's absolutely essential that eight weeks from today, on November 2, we make the right choice. Because if we make the wrong choice then the danger is that we'll get hit again, that we'll be hit in a way that'll be devastating from the standpoint of the United States and that we'll fall back into the pre-9/11 mind set, if you will, that, in fact, these terrorist attacks are just criminal acts and that we're not really at war.

(END VIDEO CLIP)

COSTELLO: John Edwards is firing back at the vice president. Edwards says a John Kerry administration would keep the American people safe without dividing the country.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: Dick Cheney's scare tactics today crossed the line. What he said to the American people was if you go to the polls in November and elect any other than us, then -- and another terrorist attack occurs, it's your fault. This is un-American. But the truth is it proves once again that they'll do anything and say anything to keep their jobs.

(END VIDEO CLIP)

COSTELLO: Cheney's spokeswoman is downplaying the vice president's comments, saying they simply reflect a difference in policy between the presidential tickets.

Later in the hour, we'll talk more about the daunting task ahead for claims adjustors in Florida adding up the damage reports.

At 17 minutes past, though, pleading with the pilots. One airline's struggle to avoid bankruptcy.

Then at 22 after the hour, inside the school where terrorists took children hostage. A new videotape could shed light on what it was like inside.

And at the end of the hour, a look at the mistakes we all make when we eat on the go and some quick fixes to make quick meals healthier.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Time now for a little business buzz.

One major airline is asking its pilots for some serious help.

Carrie Lee has more for you from the Nasdaq market site.

And I guess that means they want to take back some money.

CARRIE LEE, CNN CORRESPONDENT: They actually do, Carol.

U.S. Airways, that's the airline we're talking about here. The company has issued a general appeal to its 3,000 pilots. This after the pilots' union leaders rejected proposed concessions on late Monday.

Now, the executive committee of the pilots' union rejected that motion to send the company's latest proposal to the labor group's full membership for ratification. And a deal with the pilots is crucial to a restructuring for the U.S. number seven airline, which came out of bankruptcy protection back in March of 2003.

Now, analysts say a second bankruptcy would raise the possibility of liquidation. Through last night, no new talks had been scheduled, but U.S. Airways' stock has been affected by weakened expectations for a deal. Shares were down 13 percent yesterday. As far as the money, U.S. Airways looking for $800 million in concessions from its labor groups. And that's part of the $1.5 billion total the company says it needs to save by the end of September or it will have to file for bankruptcy once again.

Quickly, I just want to tell you about Continental Airlines, the latest to impose these fees. A $5 fee for tickets bought through U.S. call centers. $10 fees for tickets bought at U.S. airport ticket counters. Joining U.S. Airways, AMR and Northwest Airlines, Carol. So if you don't go on line, you're going to pay a little more extra money -- back to you.

COSTELLO: Thanks for the tip.

Carrie Lee live from the NASDAQ market site.

Your news, money, weather and sports.

It is 6:16 Eastern.

Here's what's all new this morning.

Russia says it's ready to launch preemptive strikes on terrorist bases anywhere in the world. And it's now offering a $10 million reward for two Chechen rebel leaders it believes are responsible for that Beslan school tragedy.

Expect a sentence of just over a year in prison for former investment banker Frank Quattrone. Quattrone is being sentenced today for his role in blocking investigations into the dot-com stock boom of the 1990s.

In money news, oil prices may rise even though there is a surplus. The head of OPEC says there's a surplus of 1.5 million barrels, but OPEC ministers may still vote to raise prices and production when they meet next week.

In culture, time for some fancy rags to hit the runways in New York City. Fashion Week begins today with dozens of designers, multitudes of very skinny models and the usual outrageous outfits.

In sports, get this, Jennifer Capriati is in the semi-finals at the U.S. Open after a sometimes contentious win over Serena Williams. Williams told reporters she was robbed by a bad call after her three set loss to Capriati.

To the forecast center now and Chad.

MYERS: And good morning, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Floridians trying to recover from the one-two punch of hurricanes Charley and Frances are getting some big time help. President Bush is expected to sign a $2 billion disaster relief bill this morning before he leaves for Florida, where he'll meet with relief workers.

In the meantime, the head of the Federal Emergency Management Agency says even though the storms are gone, there's still plenty to worry about.

(BEGIN VIDEO CLIP)

MIKE BROWN, FEMA DIRECTOR: We need to make certain we get the message out that even though hurricane Frances and Charley have now moved on, it's still a very dangerous situation, with floodwaters, downed power lines, no electrical current. I mean it's just a very dangerous situation. And then life sustaining -- we still have thousands of people in shelters.

(END VIDEO CLIP)

COSTELLO: Volunteers with the American Red Cross have been working nonstop in Florida helping victims of the hurricanes.

Joining us this morning, the president of the American Red Cross, Marty Evans.

Good morning.

MARTY EVANS, PRESIDENT, AMERICAN RED CROSS: Good morning, Carol.

COSTELLO: Tell us how bad it's become, especially in places like St. Lucie County. EVANS: Well, we are still providing very significant sheltering operations for people who have lost their homes and sustained significant damage. We have 95 shelters open and we had over 22,000 people in them just last night. So that includes not only St. Lucie County, but many other counties in Florida with people who have no homes to go to or whose homes are so seriously damages.

COSTELLO: We have so many reports of desperation, like fights breaking out and long lines for gas, huge lines to get ice.

How do your workers handle this level of frustration?

EVANS: Well, we're trying to get resources to people as quickly as possible. We have Red Crossers fanning out in neighborhoods in our familiar Red Cross trucks and other vehicles, going house by house, literally, to provide people with water, with food, with a shoulder to cry on, that mental health that's so important, and, also, personal hygiene supplies, as well as cleanup supplies.

So I think that as people know that the Red Cross is going to be there for them, that's, I hope, a calming influence.

COSTELLO: Oh, we hope so, too.

You know, a lot of supplies are stuck in northern and western Florida because of the lingering effects of Frances.

How much is actually getting through to those in need?

EVANS: Well, we've been able to move all of the extensive supplies, equipment and material out of our staging areas in the north, in Atlanta, as well as in Tampa. So we have the Red Cross supplies on the job. And, actually, yesterday they were fully on the job. So the weather is a factor for us and we also still have shelters opened up in Alabama and Georgia for evacuees. So it continues to be a factor, but we are working very hard in Florida.

COSTELLO: So hurricane Ivan is out there. It may hit Florida, as well.

How do you prepare?

EVANS: You said the most important word, and that's prepare. People need to have an evacuation plan. They need to know what they're going to do if the order to evacuate is given. They need to have basic disaster supplies. And as we've seen from the last two storms, they need to have food, they need to have water, they need to have their important papers assembled so if they have to evacuate. And they need to plan for their pets.

So preparation is the key. It's not going to make this storm go away, but it certainly is the key to getting through it better.

COSTELLO: And, quickly, tell us how we can help.

EVANS: Americans want to help and we need their help. We need financial donations. The Red Cross is not a part of the federal government so we don't get that appropriation that you just mentioned.

They can call 1-800-HELP-NOW or go online to redcross.org and make a financial contribution. And it will help the victims of the several storms in Florida.

COSTELLO: Marty Evans, president of the American Red Cross, joining us live this morning.

Thank you.

Coming up next on DAYBREAK, a look at the terror inside that Russian school. See what some of the hostages saw in a new tape showing their captors.

(COMMERCIAL BREAK)

COSTELLO: There is a lot of talk this morning as to who was responsible for that terrible attack on a Russian elementary school. Some are saying Islamic extremists were involved. But were they?

To get the Arab view on this and more, Octavia Nasr is here with us now.

She's our senior editor for Arab affairs -- good morning.

OCTAVIA NASR, CNN CORRESPONDENT: Good morning to you.

COSTELLO: So let's talk about that. I was listening to talk radio all afternoon yesterday and that's all they were talking about, that Islamic extremists were really to blame for this attack on this Russian school.

NASR: Well, that's possible. The thing is we do not know yet who was behind that siege and the bloody results that ensued.

The thing is, when you talk about Islamic extremists, I mean what does that mean really? I mean we've been seeing -- since 9/11 we've been talking a lot about bin Laden. We've been talking a lot about al Qaeda, his terror network. These people believe in Jihad, which is the holy war. So any time you hear bin Laden or any of his lieutenants or assistants, you hear the word -- the names Chechnya, Palestine, Bosnia and so forth.

So how do these countries come into the picture? They come into the picture because they have Muslims and in the mind of these extremists, these are oppressed Muslims and they deserve that their brothers, their other Muslim brothers, come over and help them. The same thing happened in Afghanistan when the Mujahedeen were fighting the Soviets.

So this is common, that Muslims -- and we're talking about extreme Muslims. We're not talking about the mainstream. We're not talking about the majority of Muslims around the world.

COSTELLO: Within the Arab world, though, some wonder why there isn't a bigger outcry, because it seems as if this small group of people are hijacking the Muslim faith.

NASR: It would seem that way. And the thing is that people always criticize the Arabs and the Arab media for not condemning these acts enough. The problem is people do not read Arab media and listen to Arab media to see this outcry. Just like the Arab world, for example, and Muslim world, criticizes the West for not caring much about their causes and their lives and culture, that's because they don't pay attention or they don't watch or read Western media long- term. You know, they watch one report and say oh, this is so biased I don't believe it.

COSTELLO: So is there a huge outcry? Is there anger in the Arab media about this very thing?

NASR: There is anger and outcry in the Arab media, on the Arab street. You hear from clerics. You hear from experts, analysts, people, regular ordinary people in the streets. The problem is these extremists are taking their cause way out of line, in the words of many experts and observers, and even, like I said, ordinary people. It all started, the outcry started when we started seeing a lot of beheadings, a lot of hostage taking. And people are not understanding where these guys are going.

They're saying well, you have a cause. We were supporting your cause. We thought you had something to fight for. Now what are you doing? This is so un-Islamic. This is so unlike our culture and our religion.

So there is an outcry. Some people would say it's not enough, and maybe it's not enough, but it's definitely there and it's starting. There was a very interesting article over the weekend from one Arab network executive, who went so far as to say our sons are terrorists and every terrorist is a Muslim now and there's something that we need to do about this.

COSTELLO: Octavia Nasr, thank you for joining DAYBREAK this morning.

NASR: Thank you very much.

COSTELLO: Still to come on DAYBREAK, home sweet home.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That's our whole life right there on that one little plot of ground.

(END VIDEO CLIP)

COSTELLO: Calculating losses and counting their blessings. Family head home after Frances, only to find they have a big job ahead of them.

(COMMERCIAL BREAK)

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