Monday, December 15, 2003

New Details of Saddam Hussein's Capture

New Details of Saddam Hussein's Capture
Aired December 15, 2003 - 22:00 ET

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

AARON BROWN, CNN ANCHOR: Good evening again everyone.Sometime after Saddam was captured and flown back to Baghdad for interrogation leaders of the U.S.-appointed Iraqi Governing Council were brought in to identify him. They did more than that. They had a little chat.Imagine for a moment what that must have been like. While his American interrogators want to know about weapons of mass destruction and terrorist groups these four men wanted something else. "Why did you kill so many and torture so many" they asked? "Why did you gas the Kurds," they wanted to know?

The former dictator was according to these men unremorseful, defiant, arrogant, hateful. The session ended when one asked him how he expected to face God some day. "I will face him with a calm heart" Saddam replied, said his interrogator "damn you. The Iraqi people will send you to hell." The question of the day seems to be what happens between now and hell? What kind of trial and when? It is one of the questions we look at tonight.First stop Tikrit, though, CNN's Nic Robertson starts the whip off, Nic a headline from you tonight.


NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Aaron, new details from U.S. troops about Saddam Hussein's capture. When he was found he came out with his hands up, introduced himself as the president of Iraq and demanded negotiations -- Aaron.

BROWN: Nic, thank you. We'll get back to you at the top tonight. Next to the White House where the president answered questions on the capture and started the discussion about what happens next. Our Senior White House Correspondent John King with the duty tonight, John a headline.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Aaron, the president says the Iraqis should take the lead in that trial whenever it is and he also says it must stand up to international scrutiny. As for when will it be U.S. officials believe they do not have the legal authority right now to turn Saddam Hussein over to the interim Iraqi government. They say he's likely to be in U.S. custody perhaps six months, maybe more.BROWN: John, thank you. On to politics and the efforts of Democrats who'd like to be president to define themselves on foreign policy, CNN's Candy Crowley with that so Candy a headline.

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Aaron, what does Saddam Hussein have to do with the presidential election of '04? Probably nothing if you're talking about next November but maybe something if you're talking about the primary season.

BROWN: Candy, thank you.And finally to one of those stories that is probably more rare than it feels but it is chilling always. CNN's Deborah Feyerick has the details. Give us a headline first.

DEBORAH FEYERICK, CNN CORRESPONDENT: Aaron, a chilling confession from an alleged serial killer, a nurse accused of targeting the patients in his care -- Aaron.

BROWN: Deb, thank you. We'll get back to you and the rest shortly.Also coming up tonight Strom Thurmond's love child, never imagined I'd say that, an African American woman born nearly 80 years ago.Also tonight we'll meet a man who's trying to keep the memories alive of all the people Saddam had tortured or killed.Segment 7 tonight the year in pictures, we'll look at some of the great photographs chosen by the photo editors of "Time" magazine.And, of course, the rooster stops by with a check of your papers for Tuesday morning, all that and more in the hour ahead.We begin tonight with post-Saddam Iraq, still a violent place. Two car bombs went off in Baghdad today, still a place of tremendous uncertainty and mixed emotions for many Iraqis. After seeing their former dictator surface on TV at the point of a tongue depressor he has once again vanished from view for interrogation at one of those undisclosed locations.Officials tell us he remains defiant that interrogators are learning little from him but much from the documents found with him at the home near the hole where he was captured. Today the military gave reporters a look around.Here again, CNN's Nic Robertson.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: We promise we'll stay here long enough everybody will get their opportunity to get a shot.

UNIDENTIFIED FEMALE: There's a wire here so watch your head and your cameras as you come through. 

ROBERTSON (voice-over): A coalition show and tell troops on the operation to capture Saddam Hussein explaining what happened.

UNIDENTIFIED MALE: And then this rug was thrown over the top and then they moved it back, saw it and heard noises in the bottom. That's when Saddam put his hands up and they assisted him out.

ROBERTSON (on camera): This tiny hole is really small inside it. It's concrete and mud on the walls, a wooden (unintelligible) here, wood around the top of the frame. It's very difficult to get in and out of. It wouldn't have been easy.When the soldiers discovered Saddam Hussein he came with his hands up. He said I'm Saddam Hussein. I'm the president of Iraq and I want to negotiate to which the troops, we are told, responded President Bush sends his regards. After that Saddam Hussein was whisked out of the hole, pulled up and taken away to a helicopter waiting in the field just across here.

UNIDENTIFIED MALE: And with that point I absolutely must be clear this was a team effort.

ROBERTSON (voice-over): Success, according to Colonel James Hickey whose battlefield command helped capture Hussein, down to timely intelligence and good luck.

UNIDENTIFIED MALE: There was zero illumination that night. Moon rise wouldn't happen for some hours. We were fortuitous.

UNIDENTIFIED MALE: Special Operation Forces came down the road that you walked in on and then from there went out there on procedure to search this area.ROBERTSON: Captain Desmond Bailey led the close-in security team.

UNIDENTIFIED MALE: It wasn't the blaze of glory that we had expected, you know, but nonetheless.

ROBERTSON: Surprise of a different kind for his colleague Major Steve Pitt running the outer cordon of defense.

UNIDENTIFIED MALE: It's surprising. It's -- did not expect to find him where we found him.

ROBERTSON (on camera): This bridge leads down to the Tigris River. This is a pomegranate and orange orchard and this is a small compound Saddam Hussein was living in. This is the kitchen here, a sink over here, medicine, Mars bars, a flashlight, a cart, rotting bananas. The place looks like a mess not the sort of place you would expect to see a former president living in, tins of Spam in the cupboard there and around this way walking around the corner behind the mud wall a box of oranges lying on the floor already beginning to rot, a pot of water here. The bedroom in here two beds and inside the bedroom a refrigerator, a heater. On the wall, posters, a Christian poster Noah's Ark, the bed crumpled bed clothing, fresh clean pair of boxer shorts unused still new, another bed, a box full of clothes, a few books.On the bookcase here pictures, brand new frames but nothing in the frames, no pictures to be spoken of and down here a pair of shoes unused, some water, (unintelligible) just chaos, not the conditions you'd really expect the former Iraqi leader to be living in.(voice-over): Surprise also for the lower ranks who didn't know that Hussein was their target.

UNIDENTIFIED MALE: The initial thought from the soldiers is, OK, we got his cook.

ROBERTSON: All ranks though happy many months tracking Hussein paid off.

UNIDENTIFIED MALE: Oh, yes. It was on our day off. I'll take a day off like that any day.

ROBERTSON: A day off unlike any other.

(END VIDEOTAPE)

ROBERTSON: The fact is, Aaron, for many of the soldiers here there really aren't many days off. They're kept pretty busy from what we can see -- Aaron.

BROWN: Just a couple quick things. Is it possible to tell, to know, to make an educated guess how long Saddam was living in that little house?

ROBERTSON: I would say at least a couple of days judging from the food there. There were some boxes of dates outside as well, the way that the sort of bed clothes and the amount of clothing in the room it looked like at least a couple of days. There was some partially eaten bits of food in the kitchen as well difficult to say if it was any longer than that though.

BROWN: Is it possible to say or make an educated guess on how long that hole or whatever we choose to call it had been there when it had been dug, reinforced, the electricity installed and the rest?

ROBERTSON: Well, the soil around it seemed fairly solid as if it was fairly well settled in. Coalition officials I've asked have said that they thought it was probably built after Saddam Hussein fell from power back in April. My assessment would be that it was fairly new. Indeed, coalition troops we've talked to said that they'd actually been to this compound before, tried to return an AK-47 to a lady who lived there so perhaps within the last few months at least there had been other Iraqis other than Saddam Hussein living there, perhaps an indication that this was a new addition to that little -- those out buildings there -- Aaron.

BROWN: Was it weird being in there?

ROBERTSON: Weird, very weird, strange. I mean when you get in that hole and you see that's where a former president was living, a man who held a reign of terror over this country for so many years incredible. It's a tiny space.

BROWN: Nic, thank you. That's a reporter's day for you, Nic Robertson in Tikrit tonight.On to Baghdad we go next. We're joined by Rod Nordland who's "Newsweek's" bureau chief there. We're always pleased to see him, good to see you now. 

ROD NORDLAND, BAGHDAD BUREAU CHIEF, "NEWSWEEK" MAGAZINE: Thanks.

BROWN: How is -- today how has Monday been different, how was Monday different from Sunday I guess?

NORDLAND: It was kind of the same really. I mean Sunday at first people were kind of reserved. They weren't sure if it was true. Then they saw the video. That started to sink in and there was some celebratory fire in the capital.And then on Monday the same thing and we were kind of bracing ourselves for sort of a huge outpouring and lots of shooting in the air because when that happened before after Uday was killed it was almost impossible to go outside but that never quite materialized and there was some shooting. It was a little bit dangerous but it was pretty random and I think overall the mood, especially among Sunnis in the capital it was pretty subdued.

BROWN: The mood among Sunnis was what, I'm sorry?

NORDLAND: Subdued, sorry.

BROWN: Subdued. Was there a sense that they had been humiliated not just their former leader had been humiliated?

NORDLAND: Yes. I talked to people even who were glad to see him captured, who were enthusiastic about the fall of his regime all along but when they saw him getting lice picked out of his hair and a flashlight thrust in his mouth like any common prisoner I think they felt offended as Arabs and as Iraqis to see their former leader treated that way.There were some small demonstrations on behalf of Saddam, especially in his hometown but more, it was more a thing of just the way he was handled and treated and kind of wounded pride.

BROWN: Am I right that there has been very little of the controversy about whether in fact this is Saddam compared to what broke out after his sons were killed?

NORDLAND: I think that's right, yes. People were so used to seeing Saddam on television and Saddam on every street corner and so on they had a good idea what he looked like and his mannerisms and everything else and I don't think anybody doubts that that was actually Saddam plus they know the Americans would have done a DNA test and there's not going to be any doubt about it.BROWN: How do they see this people you've been talking to in the last 24 hours, how would they like this to play out from this point on where he's concerned?

NORDLAND: Well, what they really want, what all Iraqis want I think is to see Saddam Hussein tried by the Iraqis and they don't want to see an international tribunal in another country. They don't want to see the Americans keep him indefinitely while they interrogate him.They would like to get onto a trial quickly and as a lot of them say frankly and then see him executed. There are even some of them saying why bother to try him. We all know what his crimes are and so on.That may be a sticking point in the future because it's not at all clear that the Americans are going to turn him over quickly to the Iraqis. I mean they agree that there should be Iraqi justice for him.But there's no government right now that would be able to put on a trial that would be regarded as anything other than a kangaroo trial plus the Americans want to interrogate him. They want to find out what he knows about WMD and the rest of the network of opposition against the Americans.

BROWN: But just back to the Iraqis for a second do they want this kind of detailed accounting of if not literally every killing, every torture, that kind of Nuremberg-esque litany?

NORDLAND: I think a lot of people do. I mean a lot of people are looking at this as a kind of final settling of accounts. I mean an awful lot of people lost their families, particularly in the Shiite community there's that strong feeling.And then there's also a feeling I think, you know, among more thoughtful people in all the communities of Iraq that if they're going to live in peace with each other with Shiites and Sunnis and especially and the Kurds with the Sunnis that they have to place his blame on somebody and not on the Sunnis as a sect or as a group but on Saddam Hussein and the people around him and that can best be done through a trial.

BROWN: Rod, good to see you again. Thank you very much.

NORDLAND: My pleasure.

BROWN: Rod Nordland of "Newsweek" magazine in Baghdad tonight.What happens next to Saddam was, as you might imagine, also the main topic of a presidential news conference today at the White House, an infrequent news conference. Without ever offering much in the way of detail the president reiterated that Iraqis will have a central role to play in what happens next. He also warned of trouble ahead and took a moment here or there to enjoy what was clearly a very big win.Here again our Senior White House Correspondent John King.

(BEGIN VIDEOTAPE)

KING (voice-over): The president says it is too soon to say exactly how and when Saddam Hussein will face trial but that Iraqis must take the lead.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: He murdered him. He gassed them. He tortured them. He had rape rooms and they need to be very much involved in the process.

KING: His personal view of the capture.

BUSH: Good riddance. 

KING: A clear hint but no direct answer when asked if he favors execution.

BUSH: I have my own personal views and this is a brutal dictator.

KING: Administration officials believe Saddam could be in U.S. custody for months until a new sovereign Iraqi government can legally take custody. The White House wants Iraqis to run the tribunal with U.S. help but is not ruling out some advisory role for the United Nations.

BUSH: Whatever justice is meted out needs to stand on international scrutiny.

KING: U.S. officials think the former Iraqi leader might have information about former generals involved in the insurgency against U.S. troops but the administration believes Saddam himself was isolated and not involved in directing the attacks.There was no communication equipment at the site of his capture, no evidence of communicating through couriers and officials believe the $750,000 in cash Saddam had was to pay for his personal security not terrorist attacks.The former Iraqi leader allegedly once ordered the assassination of the president's father and Mr. Bush recalled their telephone conversation as news of the capture broke.

BUSH: Just said congratulations. It's a great day for the country and I said it's a greater day for the Iraqi people.

KING: Mr. Bush warned of more attacks and more sacrifice in the days ahead but also included the capture of Saddam in testing an early reelection campaign theme. 

BUSH: In 2003, we have become a safer, more prosperous and better nation.

(END VIDEOTAPE)

KING: The lawyers are just starting to look at this, Aaron, but it is that promise that any trial would withstand international scrutiny that is giving the administration pause. The United States appointed the Iraqi Governing Council in place right now. Transferring Saddam Hussein to its custody would be like transferring custody from the United States to the United States in the view of White House lawyers so they think they might have Saddam Hussein in military custody for perhaps six months until the handover to the new Iraqi government takes place.

BROWN: Well, there are all sorts of little problems. If you bring the Europeans in or you bring the United Nations in then you have a death penalty issue.

KING: There is a death penalty issue. The president was crystal clear in his body language today that he believes, yes, it's up to the Iraqis but if he had a vote that he would put capital punishment on the table. Any United Nations tribunal would take capital punishment off the table so the president wants the framework to be set by the Iraqis. Whether you then bring in the United Nations to help with say defense lawyers, to help with some sort of recommendations or just to be there to watch so that you know it is a fair process those are all the things now being worked out. Administration officials say their primary emphasis right now is on the interrogation. The lawyers will get to that in due time.

BROWN: John, thank you very much, John King at the White House tonight.Now to a place where that outsized image of Saddam Hussein has fallen harder and farther than perhaps anywhere else, another corner of the Middle East, a different conflict, the same pictures though of a meek and haggard Saddam Hussein on their television screens.Reporting the story CNN's John Vause.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): This is one of the few places in the world where the capture of Saddam Hussein is being openly mourned, a small number of Palestinians in Gaza for the second day showing their support for the fallen dictator. "With our blood and our soul we'll sacrifice our life for you Saddam" they chant. To many Palestinians he was a hero, a potential leader of the Arab world. Saddam likened himself to Egypt's Jamal Abdul Nasser as the father of Arab nationalism. Even to Celandine (ph) who united the Muslims against the Crusaders but this is how his defiance ended with a whimper. For some Palestinians on the streets of East Jerusalem it is a painful and bitter reality.

UNIDENTIFIED MALE (through translator): Saddam Hussein was a brave Arab leader. I don't know what happened with all those other Arab traitor leaders.

MAHDI ABDUL HADI, PALESTINIAN ACADEMIC SOCIETY: Is it a conspiracy? Is he the real Saddam? People don't want to believe it, don't want to accept the reality as it stands.

VAUSE: The Palestinian Prime Minister Ahmed Qorei says the capture of Saddam is a matter solely for the Iraqi people.(on camera): Some Palestinians say they just can't watch any more TV coverage of Saddam's humiliation and the editorials in two out of the three Palestinian newspapers here lament that the myth of the great and powerful Arab leader appears to be just that.(voice-over): But for Israelis the news is only good.

UNIDENTIFIED MALE: I think it's pretty good, pretty good indeed. Next in line should be Yasser Arafat.

VAUSE: For now one less enemy and a warning they say to many others.

UNIDENTIFIED MALE: It's good for other dictators to know that one day they also can come into justice.VAUSE: Saddam, Israelis say, is now a problem of the past.

AVI PAZNER, ISRAELI GOVERNMENT SPOKESMAN: We hope that there will be a deepening realization within the Palestinian, not only authority, but within the Palestinian people that the ways of Saddam Hussein are wrong.VAUSE: For both Israelis and Palestinians the world is now a different place but for very different reasons.John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

BROWN: Ahead on NEWSNIGHT the evidence of his wrongdoing. We'll meet a man trying to preserve the details of Saddam's death squads.And later tonight a nurse who authorities in New Jersey believe may have killed as many as 40 of his patients.From New York this is NEWSNIGHT

.(COMMERCIAL BREAK)

BROWN: In Iraq just as in Nazi Germany brutality and bureaucracy live side by side. For every massacre it seems there was a manila folder in triplicate in a filing cabinet somewhere every torture victim a line item. Kanan Makiya has been going through this horrible accounting. He's the founder of the Iraqi Memory Foundation and he joins us tonight from Washington, nice to have you with us. You've been working on this almost a decade. Where have you gotten the records? What have you been trying to learn?

KANAN MAKIYA, FOUNDER, IRAQ MEMORY FOUNDATION: Well, the initial records we got were captured by the Kurds during the uprising that followed the 1991 Gulf War. I was the first person to enter Iraq and see those and ever since then I started a project at Harvard once the documents were transported out, which studied, analyzed, indexed, classified those documents.The second treasure trove which we fell upon in the Iraq Memory Foundation following the war was an archive of some three million pages underneath the regional command headquarters of the Ba'ath Party in central Baghdad and underneath the tomb of Michel Aflaq the founder of the Ba'ath Party.The kinds of material in this, in these documents are truly really quite extraordinary. For instance we have registers that list every school child with all the intimate details of his life and family particulars including the political positions of members of his family and so on.We have files that collect rumors. It turns out that the Ba'ath Party was interested in, had special departments that collected rumors and these we have them by year. They are sourced and the type of rumor is detailed in it.We have files of people who are forced to make confessions or sign pledges of allegiances. We have Ba'ath Party member files, something like 70,000, 80,000 of those, which contain affidavits by these party members talking about the number of people they've informed upon and this is, of course, presented as a way of getting promoted inside the party.We have registers of the number of villages destroyed by Saddam Hussein in northern Iraq. They list the village. They list the area, the dates of the elimination of the village, the map preferences and so on and so forth.

BROWN: Where does this all take you?

MAKIYA: Well, it seems to me that this is the fundamental evidentiary basis for any forthcoming trial of Saddam Hussein. I mean the single most important fact about what's happened in the last couple of days is that Saddam Hussein was caught alive and there is going to be a chance to try him.Now it's very important to get a handle on what that means. A trial should be of the whole system that he crated and that is a system that has been in place for 30 years. What we have here is some 300,000,000 pages of evidence. This is a regime that was absolutely obsessed with recording and documenting everything it did so this is the basis on which we should be trying him; therefore, this material needs to be very carefully gone through by professionals I might add, not by any Tom, Dick and Harry NGO that might come along and it is an extremely complex job.There are certain -- very few countries in the world with experience in this kind of work. Germany comes to mind, the Stasi files for instance from East Germany were handled by the Gauck Commission. We need to establish something like the Gauck Commission in Iraq.

BROWN: I'm sorry, I've got a minute and I want to try to get two things in. One is fairly quick. Have the Americans been especially cooperative in turning over documents that they have recovered?

MAKIYA: Unfortunately not. The overwhelming bulk of the documents exist in the hands of the coalition allies. They're controlled by an organization called the ISG, the Iraq Survey Group. That group is a coalition of different intelligence agencies and not a single Iraqi or for that matter member of a CPA has been allowed inside to see what's in that material.The U.S. government has combed that wealth of material, spent hundreds of millions of dollars doing it just looking for one thing, weapons of mass destruction. We have been trying very hard to tell them that if had they worked with us one could have looked through five, six, seven, eight, nine different things and therefore made this material usable in all sort of different ways and unpredictable ways and not just a matter of weapons of mass destruction. What the U.S. government now chooses to do with that collection of documents, that 300,000,000 pages, is going to be key and the way in which it transfers that to a responsible party, I stress professional and responsible party with international support and training and expertise is going to determine whether the archive has its integrity and is kept -- and is not something the people rifle through for use against other people and so on. This is dynamite material. People's lives are at stake here.

BROWN: Mr. Makiya we need to stay in touch and keep track of this to see how this plays out because this is history.

MAKIYA: Certainly.BROWN: And we are fascinated by it. Thanks for your time tonight.

MAKIYA: Thank you for inviting me.BROWN: Thank you, sir.Coming up on NEWSNIGHT, the political aftershocks of catching Saddam, Candy Crowley tonight looking at the effects on the Democratic presidential contest; a break first.On CNN, this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: You could argue the Democrats face a built-in disadvantage on foreign policy. A disadvantage that is tougher to shake against an incumbent president who has seen the country through two wars now and a terrorist attack. Against that backdrop, the day after a big victory for the president, the Democrats who would defeat him were busy defining themselves again. Here's CNN's Candy Crowley. 

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN CORRESPONDENT (voice-over): The capture of Saddam Hussein means double duty for Howard Dean, fending off rival Democrats who think they've found a soft spot and keeping up the case against George Bush and the war against Iraq. 

HOWARD DEAN (D), PRESIDENTIAL CANDIDATE: The capture of Saddam has not made America safer. 

CROWLEY: "That statement," responded Senator Joe Lieberman, "says to me that Howard Dean has climbed into his own spider hole of denial." Make that a double from Max Cleland, a supporter of Senator John Kerry, who told reporters, Dean had a chance to learn about the military, but he decided to go skiing in Colorado. Lieberman, the most hawkish of the '04 Democrats, and Kerry, a decorated war hero, both voted yes on the resolution to use force in Iraq. They have paid for it in faded fortunes during this decidedly anti-war Democratic primary season. Howard Dean, with no foreign policy experience to speak of, has dominated the primary season with his anti-war stance. Saddam in cuffs doesn't change that. DEAN: The difficulties and the tragedies which we have faced in Iraq show that the administration launched the war in a wrong way at the wrong time with inadequate planning, insufficient help, at the extraordinary cost so far of $166 billion. 

CROWLEY: Still, Dean's rivals hope Saddam's capture and the glow it put around the White House will give Democrats pause. 

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I think what this does is it says we need an experienced hand as the nominee of our party. 

CROWLEY: In a foreign policy speech scheduled before Saddam's capture and designed to calm fears about his inexperience, Dean likened his credentials to candidate Bill Clinton. 

DEAN: I think that what molds my view is the personal friendships I developed with other people around the world, some of whom are now in leadership positions in countries around the world. 

CROWLEY: Beyond the resume, Democrats worry that an anti-war candidate reinforces voter perceptions that Republicans are better able to handle national security and defense, another reason the anti- war candidate gave this speech. 

DEAN: And as president, I will never hesitate to deploy our armed forces to defend our country and its allies and protect our allies and protect the national interests. 

(END VIDEOTAPE)

CROWLEY: As one non-Dean camp put it, "Will the country, if the war goes well, go for an anti-war candidate, and in this post-9/11 world does the country require something different from its candidates in terms of a resume" -- Aaron. 

BROWN: You know, they say in so many things, timing is everything. And at best, it seems to me -- my view on this -- that this speech gets drowned out by events. Whatever he had to say gets drowned out by the picture of Saddam. 

CROWLEY: Sure. And whatever he had to say that didn't have to do with Saddam goes nowhere. I mean, this was an attempt -- and we'll see more as time goes on -- by Dean to sort of establish his foreign policy multilateralism, explain where he's going, on a variety of issues. But you're right. I mean, as we said, this was scheduled long before the Saddam capture. And so what it comes down to is, how does he feel about Saddam? And it opened a little opportunity for those who have been trying to derail Dean for some time now, because they do think it's a soft spot. 

BROWN: Candy, thank you very much. Candy Crowley on the campaign. A break in a moment. But first the "MONEYLINE" roundup, starting with a little cold water from Wal-mart. The giant retailer today predicting holiday sales will come out on the lower end of expectations, though still better than last year. McDonald's is getting out of the pizza business, selling the Italian restaurant chain it owns, 182 restaurants in all. The company saying it wants to get back to basics, burgers, fries, that sort of thing. Markets meantime finish down. So much for that big capturing Saddam boom. The market was up for most of the day, pretty much on the news of Iraq, but fell back at the end. Still to come tonight: Strom Thurmond's love child with a twist. And the story of a New Jersey nurse allegedly ending patients' suffering by killing them. Around the world, this is NEWSNIGHT.

(COMMERCIAL BREAK) 

BROWN: It is the first commandment of medicine. First do no harm. An a central tenet of any helping profession is, after all, to help, not to hurt. Certainly not to kill, as a nurse in New Jersey now says he did, as many as 40 times. Here is CNN's Deborah Feyerick. 

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Investigators say Charles Cullen called the murders mercy killings, the former nurse allegedly targeting very sick patients to ease their pain and suffering. 

CHARLES CULLEN, DEFENDANT: Your honor, I can only hope to be represented...

(UNINTELLIGIBLE) 

...charges, pleading guilty. 

FEYERICK: Cullen is charged with murder and attempted murder. One of his alleged victims, New Jersey Rev. Florian Gall. The Catholic vicar suffered cardiac arrest last June, an autopsy finding he died of a lethal level of the heart drug Digoxin. 

DR. WILLIAM CORS, SOMERSET MEDICAL CENTER: Digoxin in very high doses can cause a slowing of the heart rate to a point that the heart would stop. 

FEYERICK: For more than a year Cullen worked as a nurse at the Somerset Medical Center in Somerville, New Jersey. The hospital suspected it had a problem in June after discovering what it called extremely high levels of Digoxin in two patients. Police investigators believe Cullen may have killed as many as 15 patients there and that he did it by using a hospital computer to get large doses of heart medication from an in-house supply. 

WAYNE FORREST, SOMERSET COUNTY PROSECUTOR: He would access it, obtain the medication he was going to use, in that case, a medication called Digoxin. He would cancel the order after obtaining the medication to attempt to disguise his theft of the drugs. He would then administer the drugs. 

FEYERICK: Prosecutors say he would access records to see how his alleged victims are doing. Investigators are looking into as many as 40 deaths at ten different hospitals in New Jersey and Pennsylvania. 

FORREST: He asserted that his motive was to alleviate pain and suffering in these cases. 

(END VIDEOTAPE) 

FEYERICK: Cullen, a divorced Navy veteran, worked as a nurse for 16 years. He was fired from Somerset Medical Center in October, the hospital says, for lying about past jobs. He was arrested Friday. He had just finished eating dinner at a restaurant with an acquaintance -- Aaron. 

BROWN: Where does this go next? 

FEYERICK: Right now -- Well, the judge was stunned that he actually decided to plead guilty at a first appearance. And the judge cut him off, saying please go find a public defender. And he said he didn't want a public defender. We called their office, they said they had no such client. So we don't know whether he's going to get representation. 

BROWN: Deb, thanks very much.Now to a secret of a different sort. The late Senator Strom Thurmond from South Carolina began his long and stormy political career as a diehard segregationist. He later worked to dispel that image. Times changed. He changed. The south changed. And what would have been a scandal back then now is simply a chapter of family history, more or less, confirmed for us today. The story from CNN's David Mattingly. 

(BEGIN VIDEOTAPE)DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): Considered for years to be a poorly kept secret, the family of former U.S. Senator Strom Thurmond confirms the one-time fiery segregationist fathered a child with an African-American housekeeper back in 1925. 

JACK BASS, THURMOND BIOGRAPHER: They had an agreement that it would not be made public, that it would be just a family friendship. 

MATTINGLY: Now 78 years old and a retired Los Angeles schoolteacher, Essie Mae Washington-Williams broke her lifetime of silence in an interview Sunday by the "Washington Post." Williams' mother was a teenager working in the Thurmond family home, and the future senator was just 22 when she was born. She recounted how Thurmond visited her and provided financial support to her for decades. But she never said a word about being his daughter, even when confronted by reporters. BASS: Part of it was she didn't want to jeopardize his -- she didn't want to jeopardize his political career, and she considered him a wonderful man. 

MATTINGLY: Strom Thurmond died six months ago at the age of 100. According to Williams' attorney, she came forward now, seeking acknowledgement at the urging of her children. And in a brief statement from the Thurmond family, she seems to find it. It reads, "As J. Strom Thurmond has passed away and cannot speak for himself, the Thurmond family acknowledges Ms. Essie Mae Washington-Williams' claims to her heritage. We hope this acknowledgment will bring closure for Ms. Williams."Williams reportedly will not seek any money from the Thurmond estate. Satisfied, knowing that her chapter in the life of one of the nation's most storied politicians will now be part of history. David Mattingly, CNN. 

(END VIDEOTAPE)

BROWN: Ahead on NEWSNIGHT, the year in pictures. We'll look at the best of the best, selected by the editors of "TIME" magazine. From New York, this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: If you watch the program regularly, you already know that we have a love affair with still photos. We are taken by all they can capture in a single frame, how the power of one shot can linger, sometimes for a lifetime. Every year produces great pictures. This year seems to have produced more than most. These are "TIME" magazine's pictures of the year. In this week's edition which if you were with us last night know got a new cover at the last minute after Saddam Hussein was captured. But the pictures inside, the pictures stayed the same. Mary Ann Golden is the magazine's photo editor. 

(BEGIN VIDEOTAPE)

MARY ANN GOLDEN, "TIME" MAGAZINE PHOTO EDITOR: This year when we sat down to look at best photos of the year, we knew we had to start with Iraq, because it's been our major story for the country since the beginning of the year. But the thing that we found so amazing about it was how intimate the photography was. The closeness of the photographers was so compelling. And we had these images, you know, everything from the skittles sandstorm picture by James Hill, that was extraordinary, to the little boy with his hands up, you know, who's frightened by the soldiers. There's this beautiful image of these mourning women, Shiah women from the south that Jim Altry (ph) photographed. And you can't see anybody. There's just a hand and this beautiful blue sky behind them, but you can feel their pain. Stephanie Sinclair did this amazing image. And we didn't actually pick the U.N. bombing as much as her image really stood out. If you look at that, it's sort of the lone guy, the big machine. It's got echoes of things we've seen before. And we realize there was all this really up close and personal coverage of this war, which allowed us, then, in the second half of the package to sort of pull back. Michael Hamburg took the image that's on the top of the page. It's an image of someone brushing the dirt away from a child's face in a mass grave in Liberia. And Liberia was a huge story. There was probably eight or ten photographers working there, but it was incredibly dangerous. Liberia was tough. It's a rare breed of photographer, because you had to be incredibly brave to be working in Monrovia at that time. SARS was such a huge story. Everyone was wearing these masks, but there's something about seeing all those, you know, innocent young girls even learning their steps in the ballet. We also covered a terrible, terrible drought there was in India. And there's a very compelling image of people going for water in an area in India. It's really interesting when you can see that the photography continues to be unique and original of events that happen over and over again, like a storm. I love the photograph by the "Baltimore Sun" photographer of the little child with the arms outspread facing the wind of the hurricane that, of course, devastated the Outer Banks of North Carolina. The kiss page was to have fun, because this year there were all these kisses that got so much attention. You know, the one that -- the image that's my personal favorite is the one of Jacques Chirac kissing the hand of Laura Bush and her expression is just so sublime. And it's just a fabulous image, but it's truly fun. It's a sort of an interesting, fun thing to look at how all these kisses made so much news this year. Every year, I'm continually amazed that photography just keeps getting better and photojournalism certainly seems to be revitalized given so much news. 

(END VIDEOTAPE)

BROWN: This week's issue of "TIME" magazine. Their pictures of the year. Morning papers after the break.

(COMMERCIAL BREAK)

BROWN: Time to check morning papers from around the country and around the world. A kind of leisurely stroll through what is making news tomorrow. That means we have a little more time than we thought. If you're traveling abroad tomorrow or if you're watching this program from overseas, as many of you are -- or at least a couple of you are, here's the "International Herald Tribune." This will arrive at your hotel if you're fortunate tomorrow. The devil in the details, a piper (ph) betrays Saddam. John Burns' story, that will appear also in "The New York Times," on how they caught him. And also on the front page, "Bush to let the Iraqis decide fate of Saddam." That's the International Herald Tribune, which happens to be published by "The New York Times." Why don't we just get the "Times"?"Jerusalem Post": "Saddam capture tainted by bombings." I just found that interesting. It's the only paper I could find out there in the last few days that had a slight downturn on the story. The "Jerusalem Post," a fairly conservative paper in Israel. The "Hartford Currant." Forget the Saddam stuff for a second. "GOP rallies around Roland." That's the governor of the state. The governor of the state, we mentioned this the other day -- this has been, by the way, terrific work by this newspaper on this story -- had some politically connected people who had business with the state do some free fix-up at his little cottage. Then he lied about it, and then he admitted it. And there's a call for him to resign. And he's a Republican. The GOP says, "No. Stay there.""Minneapolis Star and Tribune." "Minneapolis Star Tribune." I put an "and" in there where it doesn't belong. I apologize. Kind of a hometown newspaper, newspaper of the Twin Cities. "Good riddance, Bush says." And then they've got a picture of Saddam's bedroom. "Saddam denies Iraq had prohibited weapons." Anything else there that I like? No. What's the weather tomorrow? Oh, it's a balmy 23 in Minneapolis tomorrow. "The Oregonian," lots of good friends out there. "Saddam's fate hangs in the balance" is their major story -- actually two stories. "The president, Bush, says his personal views on the Iraqi dictator won't influence a fair trial. The intelligence of Saddam's capture already has led to the arrest of key insurgency figures." "Inside the capture" is the way the "Philadelphia Inquirer" leads the story. But over here they put the nurse story that we just told you about on the front page, too. I would. "Nurse says he killed 30- 40." If that doesn't get you a front page, nothing does. How are we doing on time, David. Forty seconds. Just enough that this is going to time out perfectly tonight. The "Boston Herald," "Should he die? Weighing Saddam's fate." Have to go to page five to get it. I have no idea what's on pages two, three and four. But that's what's on page five, "Should he die?" And let's -- Why don't we end it with the "Chicago Sun-Times" for a change? Twenty seconds? "Saddam arrest unleashes flood of intelligence." I don't know. That may be a little overstated. But it's the front page. It's a tease to get you to buy the paper. The -- maybe it has and we just don't know it. Meant to mention this. Secretary of State Powell had prostate cancer surgery, and he's said to have come out of that pretty good, pretty well. The weather tomorrow in Chicago is gloomy, but their spirits will be up. That's what we like about Chicagoans. Take a break and update the night's top story, preview tomorrow in just a moment. 

(COMMERCIAL BREAK)

BROWN: We go for a recap of our top story. It isn't much, but it was home. The military today giving what has to be the strangest open house in recent memory. Reporters spent today popping in and out of the hole where troops found Saddam Hussein over the weekend, not far from Tikrit.Tomorrow on this program, the Food and Drug Administration takes up the debate over the morning after pill and whether you should be able to buy it over the counter nationwide. More on that tomorrow on NEWSNIGHT."LOU DOBBS TONIGHT" is next. Good night from all of us.

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

Sunday, December 14, 2003

Saddam Captured

Saddam Captured
Aired December 14, 2003 - 22:00 ET

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

AARON BROWN, CNN ANCHOR: Good evening, everyone. On his better days, and they all were better days than today no doubt, Saddam Hussein liked people to refer to him as the lion of Babylon, the anointed one, the glorious leader, the direct descendant of the prophet.On better days, that's what he liked and that's what people did because on his better days, he was quite persuasive. Tonight, he's just one more card in an ever decreasing deck of cards, the ace of spades. Defiant, we are told. Unrepentant, as you expect. But most importantly, captured and humiliated.It is a one story program tonight, with many sidebars, but it all comes back to a single sentence, "We got him." And CNN's Jamie McIntyre starts us off with the headline. Jamie?

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, for months, Aaron, it looked like the U.S. military was just a step behind Saddam Hussein. Today, they were a step ahead, as operation Red Dawn was right on.

BROWN: It was. Jamie, we'll get back to you at the top tonight. Tikrit next, a city with a somewhat complicated view of a hometown boy turned evil, if you will.CNN's Nic Robertson is there for us tonight. So Nic, the headline?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Aaron, Saddam Hussein picked up, hiding in a hole, almost within sight of his former presidential palace in Tikrit. The people of this town that were once loyal to him, still loyal, upset about his capture -- Aaron?

BROWN: Nic, thank you. It was -- had to be an interesting last 24 hours or so for the president and the White House. Our senior White House correspondent John King with the watch tonight.John, a headline?

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: (UNINTELLIGIBLE) was later called at a turning point for the Iraqi people. Not necessarily, he said, for the military mission.BROWN: John, thank you very much. And finally, to CNN's Jane Arraf in Baghdad, where for a change tonight, the gunfire seems to be mainly about celebration. Jane, a headline? 

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Aaron, of all the things that Iraqis would never have imagined a year ago, seeing Saddam Hussein like this, defeated and humiliated, might be near the top of that list.BROWN: Jane, thank you. We'll get back to you and the rest shortly. Also, coming up on this expanded edition of "NEWSNIGHT", we'll talk with the former Pentagon spokesperson, Torie Clark. Then what Saddam said after his capture. We talked with a "TIME" magazine correspondent about some fascinating details there.Also, will the capture of America's old nemesis really mean an end to the troubles in Iraq? It will end this hour and will end the next hour, too, with Monday morning papers, a double dose of your favorite segment or mine. Actually, they are fascinating today. All that and much more in the two hours ahead.We begin with the obvious. A little more than eight months after the statues of Saddam Hussein started coming down, eight months into a tough and costly occupation, the man himself has now been caught. Whether it turns out he had a principle role to play in the resistance, or was just a powerful symbol of defiance and fear, the hope tonight is that Saddam Hussein is now on his way to becoming neither. And perhaps just as significantly, as a prisoner, not a martyr.In any case, his journey began at about 8:30 local time last night, not far from his hometown in a hole in the ground.

(BEGIN VIDEOTAPE) 

BROWN (voice-over): He could have been in 1,000 places. He was captured in this one. A six foot deep tunnel covered by dirt, Styrofoam and a rug.

PAUL BREMER, CIVILIAN ADMINISTRATOR: Ladies and gentlemen, we got him.

(APPLAUSE)

BROWN: This is what Saddam looked like now, scraggly, salt and pepper beard. The American military said he offered no resistance, though he had a pistol. He was found with $750,000, U.S. dollars, cash.

MAJ. GEN. RAY ODIERNO, COMMANDER, 4th INFANTRY DIVISION: I think it's rather ironic that he was in a hole in the ground, across the river from these great palaces that he's built, where he robbed all the money from the Iraqi people.BROWN: It was these troops, member of the Army's 4th Infantry Division, who captured Saddam in an operation called Red Dawn. They had received information about his whereabouts from family members close to him.

ODIERNO: As we continue to conduct raids and capture people, we got more and more information on the families that were somewhat close to Saddam Hussein.

BROWN: Once the news became known, there were celebrations on the streets of Baghdad. And both relief and deep satisfaction in London and in Washington.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The capture of this man was crucial to the rise of a free Iraq. It marks the end of the road for him and for all who bullied and killed in his name.

TONY BLAIR, BRITISH PRIME MINISTER: The shadow of Saddam is finally lifted from the Iraqi people. We give thanks for that. But let this be more than a cause simply for rejoicing. Let it be a moment to reach out and to reconcile.

BROWN: American commanders said they believed Saddam has had as many as two dozen similar hiding places across Iraq. He was quickly flown to Baghdad after his capture. He's already had a first round of interrogation and faces a public trial sometime down the road.

BREMER: This is a great day in Iraq's history. For decades, hundreds of thousands of you suffered at the hands of this cruel man. For decades, Saddam Hussein divided you citizens against each other. For decades, he threatened and attacked your neighbors. Those days are over forever.

(END VIDEOTAPE)

BROWN: That's the big picture. And now the pieces. And is often the case, it is in those little pieces, the small details, that make this story, any story, fascinating.First, the operation itself. It was both long in the making. And in the end, as these things often turn out to be, quick to come together. Reporting the details, CNN's Jamie McIntyre.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): Operation Red Dawn was born at 10:50 a.m. Saturday Iraq time.

LT. GEN. RICARDO SANCHEZ: We received intelligence on the possible whereabouts of Saddam Hussein. Two likely locations were identified near the town of Adwar.

MCINTYRE: The two locations just south of Saddam Hussein's hometown of Tikrit are code named Wolverine 1 and Wolverine 2. By 5:00 p.m., the final piece of the puzzle falls in place. Actionable intelligence from an Iraqi informant.An hour later, 6:00 p.m., Raider brigades, 600 soldiers from the 4th Infantry Division, moves quickly under the cover of darkness, backing up this special operations task force 121, spearheading the hunt.The soldiers are after a high value target, but many don't know it's Saddam Hussein. By 8:00 p.m., the targeted areas are secured, but Saddam hasn't been found. The area is sealed and a meticulous search gets underway.

ODIERNO: Hussein was found hiding in underground crawl space at 8:26 p.m. Soldiers captured him without incident. He was in the middle -- bottom of a hole. So there's no way he could fight back. So he was just -- fought like a rat.

MCINTYRE: 9:15 p.m., a helicopter whisks the captured dictator to a secure area, which Pentagon sources say is the Baghdad International Airport. There, former regime members already in custody ID him. And he's given a medical exam.

(END VIDEOTAPE)

MCINTYRE: It would be another hour and a half before the top U.S. commander, General John Abuzaid, would have enough confidence to inform the Pentagon that Saddam Hussein's fugitive days appeared at an end. And amazingly, the news held until 5:00 this morning, when it was first reported by CNN -- Aaron?

BROWN: The -- why so -- this is not meant critically at anyone, just in the detail here, why so long between the time they got into Baghdad and they showed him off to people, and obviously they were certain what they had in the time they -- the story finally broke?

MCINTYRE: Well, I was talking to U.S. officials in the early hours of this morning. And they were being very, very cautious. They wanted to -- two things. One, they wanted to be absolutely sure that they didn't make a premature announcement, that it turned out that it wasn't Saddam Hussein. And the other thing was they wanted Ambassador Paul Bremer and General Sanchez to be able to make the announcement in Baghdad at 7:00 local time. And they were trying to keep a lid on it until then.

BROWN: It actually would be interesting to know how they planned to do this, because there were a lot of eyeballs on that early morning 7:00, whatever time it actually came off, that wouldn't have been on it, had it not leaked.

MCINTYRE: Absolutely. It did -- certainly heighten the tension. And the first feel we really got of it was when our reporter in Tikrit called in to say that the U.S. troops coming back from a raid, what could have been a routine raid, were in a very celebratory mood, taking pictures of each other, slapping each other on the back, even passing out cigars. That was a big hint that something big was up.

BROWN: Jamie, thanks a lot. Jamie McIntyre worked on the Pentagon side of the story.On now to Tikrit, where until recently, the Army's 4th ID has had a fairly rough go of it. In addition to hostility from the locals, it's in a very tough area, it has come under criticism for, as a Marine commander put it earlier this week, too much kicking down doors and other rough stuff.But valid or not, there's plenty of disagreement on that score. You don't hear much criticism about the 4th ID tonight. Reporting the story, CNN's Nic Robertson.

(BEGIN VIDEOTAPE)

ROBERTSON (voice-over): The first to know and the first to celebrate, these U.S. soldiers from the 4th Infantry Division returning to base hours after capturing Saddam Hussein.Almost a day later, winning praise from their commander.

ODIERNO: I just want everyone to know how proud I am of the great soldiers of the task force and the division.

ROBERTSON: The two star general showing pictures of how his troops raided the remote farmhouse where Saddam Hussein was found hiding in a hole. And detailing how intelligence gleaned from Hussein loyalists led to his capture.

ODIERNO: As we continued to conduct raids and capture people, we got more and more information on the families that were somewhat close to Saddam Hussein. 

ROBERTSON: On the streets around the U.S. military base in the former dictator's hometown of Tikrit, none of the joy being expressed elsewhere."Saddam Hussein is just an ordinary man," he says. "Governments fall and rise. This new authority is no use at all. We were a million times better of under Saddam Hussein.""It will have no effect on the resistance," this man adds. "They are not fighting for Saddam. They are fighting for Iraq. And Iraq is occupied."Around Tikrit, U.S. troop patrols continued through the day. None here letting their guard down yet. General Odierno cautious about the reactions in his area of operation, the Sunni Triangle.

ODIERNO: In the background, everything will be very a relief, a sense of relief, I think in most cases. So we'll wait and see what happens.

(END VIDEOTAPE)

ROBERTSON: And waiting is what these troops have been good at. And Aaron, it's reward seems to be evident today.

BROWN: Nic, are you surprised he was taken alive?

ROBERTSON: Not too much. I think the Iraqi people have probably been very surprised. I'm not so surprised. I think there was evidence that we've seen over the last few months that Saddam Hussein had made himself into a big brave person during his administration in Iraq, but there are things that come to light following that. The fact that he'd run away, the fact that this two sons had had a shootout. There were other indicators that he perhaps wouldn't go down in a blaze of glory. And that's exactly what happened. He had the gun. He had the opportunity to shoot himself, and he just didn't do it, Aaron.

BROWN: Part of the problem with this question, I think, is the answer depends on which part of the country you're in, whether you're in the north, the central part of the country, or the south. But do you believe that the view of the Americans or more importantly do Iraqis believe that the view of the Americans has changed, that they are more confident that they are more able to solve all of the other problems that plague the country right now?

ROBERTSON: I'm not sure that Iraqis believe that at the moment, Aaron. There are just too many things that aren't going right. The lines of a gas stations have been getting longer over the last few weeks. It's part of the problem of attacks against the oil refineries, the oil pipelines, part of the problems of importing oil from refined oil from Turkey.There are other things, the electricity, the security. There are a lot indicators that just aren't working for the Iraqis at the moment. This will boost their confidence in the United States. This will be a very, very positive sign for them.But in a few days, I think we can expect to be voicing all those other concerns we've been hearing over the last few months -- Aaron?

BROWN: Nic, thank you. Nic Robertson, who's in Tikrit tonight.In the end, capturing Saddam Hussein as many have predicted, along came down to someone who knew him, ratting him out, not by choice, we're told, but giving him up all the same.Friends of the family, it is said, though that could mean less than it seems. The intelligence side of this story reported by CNN's David Ensor.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): The man who urged supporters to fight to the death not only gave himself up without firing a shot, say U.S. officials, but he's now answering questions from American interrogators. Though officials say he has not provided any new information thus far.Saddam is willing, officials say, he could be the best possible source for the CIA's David Kay, the man in charge of looking for weapons of mass destruction in Iraq.In a statement, House Intelligence Committee chairman Porter Goss said, "With this capture, many lingering questions will be answered. But we cannot forget that Saddam has been engaged in deceit and deception for decades."How did they find Saddam? It was low tech human intelligence, U.S. officials say, actionable intelligence painstakingly gathered.

BUSH: The operation was based on the superb work of intelligence analysts, who found the dictator's footprints in a vast country.

ENSOR: The information did not come from a tip. U.S. officials pulled in former Saddam bodyguards and members of Tikriti families close to his regime for intense interrogation. Information extracted from one person led to another.

MAJ. GEN. RAYMOND ODIERNO, U.S. ARMY: Over the last 10 days or so, we brought in about five to 10 members of these families, who then were able to give us even more information. And finally, we got the ultimate information from one of these individuals.

ENSOR: Once captured, Saddam was shown to some other prisoners, like Tariq Aziz, his former senior aide, who eventually confirmed his identity beyond a shadow of a doubt.

(END VIDEOTAPE)

ENSOR: Though Saddam has given up nothing new so far, the interrogation that has been conducted, intelligence officials say prisoners that do talk, do exchange give and take with the interrogators like he already has, generally start giving up useful information eventually -- Aaron?

BROWN: Let's talk for a minute about the degree to which he is cooperating or not cooperating, because I think that there is some -- well I think different people are saying different things, different sources are saying different things.We know, or at least we believe we know that when he was asked who he was, he readily identified himself. That much I think we all agree on, right?

ENSOR: That's right, he did.

BROWN: Okay. Beyond that, is he defiant as some have said?

ENSOR: He is said to be defiant in some of the comments that he makes. He is answering the questions. He is listening to and answering them so far, giving basically the rote answers. What do you mean weapons of mass destruction? We don't have any Iraq, that sort of thing.But officials I've spoken to say when prisoners start talking right away, they generally start giving useful information at some point down the road. And they fully expect that to happen.

Friday, December 12, 2003

Bush Tries to Quiet Halliburton Controversy; Environmentalists Accuse Administration of Hypocrisy; Should Morning-After Pill Be Available Without Prescription?

Bush Tries to Quiet Halliburton Controversy; Environmentalists Accuse Administration of Hypocrisy; Should Morning-After Pill Be Available Without Prescription?
Aired December 12, 2003 - 22:00 ET

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

AARON BROWN, CNN ANCHOR: Good evening again.Life it seems is full of contradictions large and small. Take Iraq. It has the second largest pool of oil in the Middle East and you can't buy a gallon of gas in Baghdad. Actually you can but not easily as we'll show you in a few minutes.But when you can it's a steal, four cents a gallon or so. The price of gas in a place that has a sea of oil is the focus of a couple of stories tonight and is the starting point for the whip.Jamie McIntyre first away from his normal digs at the Pentagon I see, Jamie a headline from you.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, President Bush today tried to quiet the controversy over Halliburton saying if the company had overcharged the U.S. government the money would have to be repaid. Defense Secretary Rumsfeld called it just a disagreement not really an overpayment but the president's critics knowing a winning issue when they see one are turning up the heat -- Aaron.

BROWN: Jamie, thank you.Next, to the White House CNN's Suzanne Malveaux, Suzanne a headline from you tonight.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, questions about conflict of interest. First of course it was Vice President Dick Cheney and Halliburton but now as the former Secretary of State James Baker the president's special envoy, Mr. Bush today saying he is standing by his men.

BROWN: Suzanne, thank you.Now to questions of what's in the air and what's in your food and what is the government doing about it, CNN's Kelly Wallace with that tonight, Kelly a headline from you.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Aaron, environmentalists accuse the administration of being hypocritical, on the one hand warning about mercury levels in tuna and then on the other hand not doing enough to stop mercury from being emitted into the air. The EPA says environmentalists have their facts wrong that this White House is doing more than has been done before.

BROWN: Kelly, thank you.Finally the debate over making a contraceptive pill available over the counter, CNN's Christy Feig is working that story for us, Christy a headline.

CHRISTY FEIG, CNN CORRESPONDENT: Well, getting the morning after pill could soon be as buying aspirin and it's igniting a contentious debate. We'll tell you why, Aaron.BROWN: Christy, thank you. We'll get back to you and the rest shortly.Also coming up tonight so I've just now figured out how my cell phone works and now they're talking about phones through the Internet. We'll try to explain that in terms we can all understand.Segment 7 tonight the dying hobby of model railroading or is it really dying? It depends on which hobby store owner you ask.And we'll end the week with an encore from the rooster and his papers and we hear he's got a few special ones tonight, yes he does, all that and more in the hour ahead.We begin tonight with what the Secretary of Defense Rumsfeld is calling a disagreement. Others less friendly to the administration are calling it a disgrace. A cynic might say it is simply business as usual. Whatever it is the question of whether a subsidiary of Halliburton overcharged the Pentagon $61 million for fuel remains topic A tonight for many reasons.We begin with CNN's Jamie McIntyre.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): President Bush tackled the Halliburton flap head-on insisting the company formerly headed by his vice president would be held to the letter of the law.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If there's an overcharge like we think there is we expect that money to be repaid.

MCINTYRE: Defense Secretary Rumsfeld downplayed the findings of his own auditors even more insisting it wasn't really an overpayment for fuel imported into Iraq just a disagreement over charges by a Kuwaiti subcontractor.

DONALD RUMSFELD, DEFENSE SECRETARY: There was no overpayment to any company and, in fact, there is a fairly normal process going on where they submit bills from their subcontractors and for their own. It gets discussed and debated. We've got auditors that crawl all over these things.

MCINTYRE: Halliburton's current president vigorously defended its transactions with the U.S. government and insisted the company was being criticized for doing a high risk, low profit thankless job.A statement said: "Halliburton has repeatedly tried to transfer the fuel delivery mission to a local supplier because it is dangerous for our people. So far, no one has been able to find a replacement for Halliburton."Congressional critics, including Democrats John Dingell and Henry Waxman, argued they not Pentagon auditors were the first to blow the whistle on the high price the U.S. was paying for Kuwaiti gas.

(END VIDEOTAPE)

MCINTYRE: The White House insists that the Pentagon investigation will answer any questions about whether there was impropriety on the part of Halliburton and if it turns out that the Kuwaiti subcontractor did overcharge Halliburton by $61 million the Pentagon points out that during the combat phase in Iraq the Kuwaiti government provided the U.S. $300 million worth of gasoline for free -- Aaron.

BROWN: That's an interesting defense. I'm not sure it's exactly the issue but we'll let them sort that out. In trying to figure this out today it is not clear to me, maybe it is to you, it is not clear to me how in this scenario where Halliburton's paying $2.00 plus for a gallon of gas and selling it for four, six, 15 cents, how it is profiting from this deal. Is that clear to you?

MCINTYRE: Well, one of the things that the auditors determined was that Halliburton had not profited any more from the deal than they would have if they had bought the gas at a lower price. They got a fixed percentage of the contract with a ceiling and they didn't profit anymore.But what happened was the U.S. taxpayers paid perhaps $61 million more than they would have because they sell the gas in Iraq at a subsidized lower price, as you've noted. So, if anybody lost money it was the U.S. taxpayers and if anybody got that $61 million it was the Kuwaiti subcontractor.

BROWN: Jamie, thank you, Jamie McIntyre tonight.With all kinds of numbers flying around about who's paying how much for a gallon of gas in Iraq here's the reality. Except for the military there's hardly a drop to be had at any price in a country that used to be swimming in it.Here's CNN's Satinder Bindra.

(BEGIN VIDEOTAPE)

SATINDER BINDRA, CNN CORRESPONDENT (voice-over): Mohammed Odali (ph) begs for gasoline in a country that has the world's second largest oil reserves. The irony irritates Odali and as he goes from car to car his temper finally explodes."I blame Bush and the American administration" he says "because they are benefiting from the wealth of the Iraqi people."Millions of Iraqis are just as angry and gas hungry as Odali. This line for gasoline in Baghdad stretches for five kilometers, about three miles. Many motorists say it takes eight hours to fill up even if the price is still incredibly cheap by world standards about one U.S. cent a liter, slightly less than four cents a gallon.This man who gives his name as only Mohammed is so fed up he says he's quit driving.

UNIDENTIFIED MALE: We are feeling that we are humiliated in our country and humiliated in our places and humiliated in our homes.

BINDRA: With electricity in short supply, Iraq's aging oil refineries are struggling. The ongoing insurgency is another cause for concern.

DATHAT AL-KHASHAB, OIL REFINERY MANAGER: The main reason for the crude is not coming to the refineries are sabotage on pipelines and this sabotage is continuous.

BINDRA: What's also continuing to irritate Iraqis is a thriving black market. Some traders are selling stranded motorists gas at prices 15 times higher than those at the gas station. These costs are escalating tensions.Gunshots have been fired. Some gas stations are now guarded by U.S. Marines and just this week two U.S. soldiers corralling traffic near gas stations were shot dead. To cope with the shortage, Iraqi is now rationing gas.

BINDRA (on camera): Drivers can buy only 50 liters or 13 gallons of gas in one go. Iraq is also importing four million liters or approximately one million gallons of fuel from Turkey.(voice-over): Coalition forces are warning black marketers they face lengthy jail terms but Mohammed Odali is unimpressed. After hours of begging, a fellow Iraqi gives him some gas for free. Odali realizes he's been lucky. Tomorrow, he says, he'll have to be back in line again.Satinder Bindra, CNN, Baghdad.

(END VIDEOTAPE)

BROWN: On now to the White House and the Bush administration's newest troubleshooter. He's also the oldest, James Baker is. His mission involves persuading other countries to forgive Iraqi debt and few would doubt his influence in that regard or his clout. But both may also have a lot to do with the connections he's made since leaving public life and those connections are raising a few eyebrows.We turn to CNN's Suzanne Malveaux at the White House for the latest.

MALVEAUX: Well, Aaron, it was a bit of a dust-up that began with the "New York Times" editorial that said James Baker has to sever all of his ties to the private sector, otherwise it will be a conflict of interest in his new job to try to get these countries to forgive Iraqi debt.Now, President Bush today said that he did not read this "New York Times" piece but in his words he said he didn't mean to diss the "New York Times" but he is fully standing behind his man.

(BEGIN VIDEO CLIP)

BUSH: Jim Baker is a man of high integrity. He's a man of enormous experience and it makes sense for him to serve our country on an important mission and that mission is to encourage countries to forgive debt so the Iraqi people can more easily grow a nation that is prosperous and peaceful.

(END VIDEO CLIP)

MALVEAUX: Baker is a partner in a Houston law firm. One of its clients is Halliburton and Baker is a senior counselor to the Carlyle Group. This is an investment group that does business around the world, including in the Middle East and with the Saudi royal family.And the White House Counsel Office however says it is satisfied that Baker has complied with the law that there is no conflict of interest. Baker is considered a special government employee, a temporary volunteer unpaid position and as such he is not required to sever all his ties to the private sector but this is what Baker has done.He has filed a financial disclosure form, agreed to forego any earnings from clients with connections to Iraqi debt and has resigned from the board of EDS, a company with government contracts.Now, Monday Baker is going to be traveling to Europe. He's going to be meeting with the leaders of France, Russia, Germany, Italy and the United Kingdom. The administration believes if it's anybody who can go ahead and make a deal in forgiving Iraqi debt it is Baker -- Aaron.

BROWN: This is a fascinating moment and a fascinating negotiation. Other than the good will of the administration and perhaps what is morally right, you might argue that, what is it that Mr. Baker has to offer?

MALVEAUX: Well, Mr. Baker actually, I mean he's, as you know, a very powerful political player here. What he has to offer from the administration, of course, not only his diplomatic ties and international experience but there is a possibility that there is some wiggle room here. It is all very murky who's going to get on this list for these prime contracts and perhaps, you know, people who are already on that list. There is a possibility the administration signaling that if they forgive Iraqi debt they may be able to be eligible for some of those contracts. 

BROWN: Well, we'll watch the trip next week. Thank you, Suzanne, Suzanne Malveaux at the White House.On now to politics and fish, the two collided this week when a federal panel for the first time recommended that pregnant women, nursing mothers and young children should be warned to limit the amount of tuna they eat to avoid exposure to unsafe levels of mercury. OK, but given what we heard about mercury earlier this month we are a bit confused.Here's CNN's Kelly Wallace.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): The concerns about mercury in tuna came just a week after we learned the Bush administration is backing a controversial new plan to deal with the amount of mercury in the air.Instead of supporting mandatory cuts in emissions by power plants the EPA wants a market-based approach allowing the plants to buy and sell rights to emit mercury. Environmentalists say there is a glaring contradiction here.

DDR. LINDA GREER, NATIONAL RESOURCES DEFENSE COUNCIL: Well, it's incredibly hypocritical. On the one hand the government is acknowledging the problem of mercury in food and then on the other hand last week they're failing to do anything about it.WALLACE: The new EPA administrator disagrees.

MICHAEL LEAVITT, ADMINISTRATOR OF EPA: Those who would suggest that we're somehow rolling back the standard misstate the truth. This is the first time we have ever regulated mercury coming from power plants. This is the first time in the country's history that we've done it.

WALLACE: Leavitt said his plan would cut mercury emissions by 70 percent in 15 years. Environmentalists say the Bush administration is weakening Clean Air Act requirements which call for nearly wiping out mercury emissions in four years.Both sides do agree on this that there is a direct connection between the mercury that is emitted into the air by power plants and the mercury we find in tuna and other fish we eat.

DR. PHILIP LANDRIGAN, MOUNT SINAI SCHOOL OF MEDICINE: That mercury is vaporized. It goes up the power plant stack. It goes into the atmosphere, travels a certain distance through the atmosphere, comes down eventually into the lakes and rivers and into the ocean, gets into the food chain in the sea and accumulates in the fish.

WALLACE: So, the debate centers on how to reduce the mercury in the air and how quickly. With environmentalists arguing the Bush White House is putting industry interests ahead of public health and the EPA saying its incentive-based plan modeled after the one used to reduce acid rain has a proven track record and will not place an additional financial burden on energy companies.

(END VIDEOTAPE)

WALLACE: And the issue will take center stage Monday. That is when the EPA faces a court-issued deadline stemming from the Clinton years to release a public proposal to regulate mercury. It will release its market-based idea as well as a rule calling for mandatory cuts in emissions. Both of those ideas will then be open to public comment for a year so, Aaron, you can bet we'll be hearing a lot about both in the months ahead.

BROWN: We should be able -- I mean some things are opinion and we'll let those go but some things are factual and there is a factual question that seems to be in dispute. Who's right here? Are the environmentalists right when they say the previous plan would have eliminated 90 percent of mercury in the air in four years? Or, is the administration right saying that they will, in fact, do more to reduce the amount of mercury than the Clinton proposal, the Clinton era proposal?

WALLACE: Well, we haven't had regulations before so we don't really know the answer. That's part of it. So the administration would say by providing incentives to industry and preventing increased costs on utility companies you will be encouraging them to go ahead and cut their emissions of mercury but environmentalists say unless there's a mandatory regulation requiring its companies to do it you're not going to see anyone doing anything. That's what I know.BROWN: Thank you and that's all I ever ask is what you know. I don't want anything else. One more note before we go to break in this segment. Shoshanna Johnson, the Army private, who spent 22 days, I'll bet it seemed longer, as a prisoner of war in Iraq after being shot in an ambush was discharged from the Army today. Ms. Johnson was traveling in the same convoy as Jessica Lynch, later was shown in an Iraqi video being questioned by her captors. Her father accused the military of unfair treatment when his daughter was offered a smaller disability check than Ms. Lynch.Ms. Johnson, the first black female POW in American history said in a statement today she does not regret her five years in the military. She joined because she wanted to learn to be a chef.Ahead on NEWSNIGHT, the morning after pill, will approval to sell it over the counter create a new sexual revolution?And later, we'll visit two shops keeping the dying hobby of model railroading alive, competitors in more ways than one.From New York this is NEWSNIGHT.

(COMMERCIAL BREAK) 

BROWN: Once again a tiny pill has become ensnared in the politics of birth control and abortion. You may have heard it called the Morning After pill. Its brand name Plan B, for when Plan A, contraception, fails or fails to be used.The FDA has already approved it as safe. Doctors prescribe it. Some states even allow pharmacists to sell it without prescription. So far so good but next week the FDA will consider whether to allow Plan B to become the first emergency contraceptive sold over the counter nationwide and that, of course, has set off a whole lot of controversy.Here's CNN's Christy Feig.

(BEGIN VIDEOTAPE)

FEIG (voice-over): Within 72 hours of unprotected sex a woman can take two pills 12 hours apart and she has a good chance of preventing an unwanted pregnancy. The drug is called Plan B and works by keeping a fertilized egg from implanting in the wall of the uterus. It's available now without prescription in five states and it's reviving the abortion debate.

FLORIA FELDT, PRESIDENT, PLANNED PARENTHOOD: Scientifically and medically pregnancy occurs at the time of implantation.

WENDY WRIGHT, CONCERNED WOMEN FOR AMERICA: The fact that something is getting implanted shows that there is a pregnancy that already exists.

FEIG: If the egg is already attached to the wall of the uterus, which happens from seven to nine days after the egg is fertilized, Plan B will not have any effect but opponents have more concerns. Plan B contains a high dose of the hormone found in traditional birth control pills which can cause blood clots in certain people.

WRIGHT: If this is over the counter it would be a high dose of this drug so it's likely to cause all kinds of unknown problems and women are more likely to use it repeatedly.FEIG: Those who want the pill available over the counter disagree.

FELDT: All of the evidence indicates that women use emergency contraception very responsibly and the fact that they have it, all of the studies have shown so far, that because women have access to emergency contraception does not mean that they use it regularly.FEIG: Emergency contraceptives like Plan B are already sold without prescription in about 30 countries throughout the world.

(END VIDEOTAPE)

FEIG: Now, the morning after pill has been available by prescription since 1998 and its use is increasing slightly. Last year a survey found six percent of women of childbearing years use the pill, up from two percent in 2000 -- Aaron.

BROWN: And to what degree, if any, have there been complications from its use?

FEIG: Well you haven't seen a lot of that. What you have seen studies coming in on these places, it's available in other countries, about 30 other countries use this as we mentioned and the reports that you see coming in look more at things like STDs are there an increase in STDs because that would imply that people weren't using other protection.You do see in some cases that goes up a little bit. There has not been a lot of reports that we were able to find that people were having massive problems with blood clots and the people who are in favor of this going over the counter say that's not really a problem with this pill because you're not using it long term like you do when you're using it as birth control.

BROWN: Christy, thank you. STDs for those who don't know are sexually transmitted diseases. Thank you very much.A lot of contention over this contingency plan, a lot of questions too. We turn now to Dr. Camelia Davtyan, Director of Women's Health at UCLA's comprehensive Cal Health Program, nice to have you with us.On the question of side effects, anything you want to add there? Do we know much about repeated use and whether or not that causes additional problems?

DR. CAMELIA DAVTYAN, UCLA: We don't know that much about repeated use but if you think of how many prescriptions have been written in the United States for this medication and how many people have been using this being dispensed by pharmacies here in California and other four states, without reported serious side effects, in my opinion I think it's pretty safe to be approved for availability over the counter.As far as the blood clots, which is a side effect that has been discussed a lot in the media, we have to remember that Plan B only contains the hormone progesterone and not the estrogen and such it is not prone to cause blood clots. So, that's important to keep in mind.

BROWN: There is this and there probably will always be this debate over at what point it is a pregnancy, at what point what we're really talking about is an abortion. From a medical standpoint is it a pregnancy?

DAVTYAN: From a medical standpoint pregnancy begins with implantation. That's what we teach our medical students and what we learned in medical school and Plan B would work before implantation. It is not effective after implantation. In my opinion it is a contraceptive method and not an abortive method.

BROWN: And so this is -- from a medical and a scientific point of view this is really a political debate or a moral debate I guess on how you perceive the beginning of life?

DAVTYAN: Well, if you look at which agencies are supporting the over the counter availability like the American College of Obstetricians/Gynecologists, American Academy of Family Practitioners, American Academy of Pediatrics, you kind of get the message that the major medical groups are supporting that from a medical standpoint.

BROWN: Let's set these controversies aside for a minute or two and talk about a couple of other things. One of the things and we talked about this in our morning call today, a suggestion one of our colleagues made that it would have a pretty dramatic effect on the way women behave and use contraceptives or don't use contraceptives. Do we know much about that?

DAVTYAN: I don't think there has been many studies done as far as if this would change the contraceptive behavior. I doubt that women would stop using condoms because most women use condoms to protect from sexually transmitted diseases.On the other hand, given the fact that this medication has a good safety profile I don't think it's really that important to worry about that and if you think of when the pill was first introduced in the '60s there were worries about women maybe stopping having children or fertility decreasing tremendously. That really hasn't happened.I think most women are very responsible about the way that they use contraception and there's only a minority of women who might be prone to using something without knowing what it does and what the side effects are.

BROWN: So you think this idea that women might, women who are on the pill for example might come off the pill because of whatever concerns they have about the pill and just rely on this are perhaps overblown?

DAVTYAN: I think they are perhaps overblown because in my experience even the younger women or teenagers they usually ask questions about side effects and how a medication works.

BROWN: And I suppose if you -- politically this question cuts both ways but I'm not offering it up politically. Is there -- how do we think this would affect or might affect or do we know anything about how it might affect the behavior of young men and women, teenagers for example?

DAVTYAN: I don't think we know that much scientifically but the question of teen pregnancy in this country is still a very important social problem so I think the availability of a method that would not require a visit to the physician or a prescription for a physician would definitely be a very important choice that the teenager would have in order to prevent unwanted pregnancy.

BROWN: Because kids are reluctant to -- kids are reluctant to go to doctors.

DAVTYAN: They really are. They're reluctant to go to doctors. They're reluctant to talk to their parents sometimes and we need to remember that there are three million unwanted pregnancies in this country every year.

BROWN: Dr. Davtyan good to have you with us tonight, nice job. Thank you.

DAVTYAN: Thank you very much, Aaron.

BROWN: Thank you.Later on the program, morning papers, a very special Friday edition of morning papers I must say.Up next we update the story of the boy who got in trouble for saying that his mom is gay, that and more.This is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: A quick look now at some of the other stories that made news from around the country and around the world today. It begins in Hammond, Indiana. David Maust was in court today arraigned for the murder of a teenager. He pleaded innocent though police say he confessed to strangling the boy, wrapping him in plastic and burying him in concrete beneath his house. Coincidentally, two other bodies have been discovered also wrapped in plastic and covered in concrete. And Mr. Maust already has a history. He killed a boy 22 years ago, pleaded guilty then and served 18 years in prison. Goodness. The school board in Louisiana -- Lafayette, Louisiana -- says it won't apologize for punishing a boy who told a classmate that his mother, his own mother, was gay. The boy says the school board -- was disciplined for misbehaving, not for using the G-word, this despite a report from his teacher which clearly states otherwise. A lawyer for the ACLU called the board's decision last night revisionist history. No further comment from the board. Emily Dickinson was wrong. Hope is not the thing with feathers. Canada's new prime minister is. Paul Martin assumed his post today, the ceremonies including a native purification ritual by way of an eagle feather. And even though "The New York Times" will still refer to him as Mr. Jagger, you can call to him Sir Mick. He was knighted today. His band mate, plain old Keith Richards, called it ludicrous, a paltry honor, he says. Hey, it's only rock 'n' roll. Sir Mick and his drummer, Mr. Watts, are said to be pretty savvy indeed. So this "MONEYLINE Roundup" is dedicated to them tonight. Sony and Bertelsmann have finalized an agreement to merge their music divisions. The new outfit, Sony BMG, would become the second largest record company in the world, subject to approval from regulators in both the United States and in Europe. Regulators in Canada have OKed music downloading for personal use, but not uploading. The country's copyright board also imposed a tax of up to $25 on iPods and other iPod-like devices. But experts say the board's decision doesn't go far enough toward establishing once and for all a clear set of rules about buying and selling and trading copyrighted music online. Producer prices fell in November by 0.3 percent. Wall Street expected them to rise a tad. That's another bit of economic jargon that we occasionally throw in here on the program. But jargon on not, it kept the rally going. All major indexes were up today. So were all major indices. Man, this segment. Still to come on NEWSNIGHT: phoning over the Internet. Why are so many companies rushing to do it and what does it mean to you? Around the world, this is NEWSNIGHT. 

(COMMERCIAL BREAK) 

BROWN: I am of the belief -- and I may be wrong here, but I am of the belief that one of the few things in life you can count on is the phone. Even in a blackout, the phone works, unless, of course, you have one of those wireless phones. And then you're out of luck. I am also of the belief that phones are more reliable than, well, let's say cable. Cable goes out sometimes. The phone works. Given these two beliefs, I'm left wondering why it is that cable companies, including our sister company, Time Warner Cable, are racing to get into the phone business or, more importantly, why I should make the switch. Here's CNN's Daniel Sieberg. 

(BEGIN VIDEOTAPE) 

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT (voice-over): It's called voice-over Internet protocol, voice-over I.P., or VoIP, for short. 

UNIDENTIFIED FEMALE: Basically, voice-over I.P. is just taking voice and putting it over your data line. Why would someone want it? Right now, the compelling reason for both consumer and business is cost. It's just, frankly,, cheaper than getting a traditional phone line. 

SIEBERG: Some cable TV companies, including CNN sister company Time Warner Cable, have already announced plans for voice-over I.P. service. And AT&T already offers has VoIP for some business customers. But now, by the end of March, AT&T plans to extend that service to residential customers in the top 100 markets in the United States. And AT&T hasn't said how much it will charge, but you can already find the technology cheap, even free, over the Internet through small companies such as Skype. 

UNIDENTIFIED MALE: There are several hundreds millions of users on the broadband Internet. And I believe that, in the next few years, as the broadband penetration continues to double every 1.5 years, something like that, more and more people will be starting to use the Internet to make phone calls. 

SIEBERG: Analysts say VoIP reliability is comparable to cell phone technology. You might get some dropped calls and sound may not be as good as with a land line. And if your home loses power, so does your phone. And it's not necessarily easy to install. 

UNIDENTIFIED FEMALE: One of the most difficult things is going to be trying to figure out exactly how do you connect to it. So will the cable operator give you a box to do that? And, right now, there is additional hardware for a majority of these services. In some cases, it's software but then you have to download the software or load a disk. So, really, it's going to be a bit of an installation challenge for those that aren't very tech-savvy at the moment. 

SIEBERG: But AT&T's initiative could mark the beginning of a wide-scale shift in the way we make phone calls. 

UNIDENTIFIED FEMALE: AT&T saying they're going to do voice-over I.P. is a big validation of VoIP in the marketplace. Daniel Sieberg, CNN, Washington.

(END VIDEOTAPE) 

BROWN: Because, of course, some of us here at NEWSNIGHT are not too proud to admit that VoIP and broadband are not words that come up in everyday conversations very often, unless we're faking it, which is why we've asked Omar Wasow, the executive director of BlackPlanet.com, to help make sense of this. It's good to see you.

OMAR WASOW, EXECUTIVE DIRECTOR, BLACKPLANET.COM: Good to see you.

BROWN: Why is it cheaper?WASOW: Well, there are two main reasons why it's cheaper. One is that's it's radically more efficient to use the Internet to transmit voice calls than the older technology, which is really decades old. The second reason is that there are an enormous number of taxes that exist on the traditional phone calls that are not a part of an Internet call. 

BROWN: Yet.

WASOW: So you take those two together -- not yet at least, yes. So you take those two together and you can actually save a lot of money. 

BROWN: That was actually my next question. Is it a lot of money or are we talking a buck or two or five a month? Because you are giving up the reliability of a conventional phone. 

WASOW: Now it is not quite as reliable as a conventional phone. Over the next decade, you will see this technology become the standard and traditional phone technology will essentially fade away. 

BROWN: But how do you -- you need power. The telephone, the normal, regular telephone in your house has its own power. 

WASOW: And that certainly is a dramatic difference when there is a blackout or when there is some kind of crisis. 

BROWN: Well, that could never happen here, a big blackout. 

(LAUGHTER) 

WASOW: Right. That's just a thing of the past. It's obsolete. 

(CROSSTALK) 

BROWN: Can't happen. 

WASOW: It certainly can happen. And, certainly, we've seen other kind of crises in New York City where having reliable phone calls matter. But it does make a difference. You asked about the pricing. You're talking about $50 to $70 for an unlimited calling package for local and long distance in, say, the United States. And you're talking online from a company like Vonage $35 for an unlimited calling. And you're going to see those prices come down even more. So we're just at the beginning of this very dramatic compression on local, long distance, international calls, in part, again, because a lot of what the additional fees are, especially for something like international calls, are taxes. And so you're just going to cut through all of that. 

BROWN: A couple more 101 calls. Then I want to get beyond that. Maybe this is best asked of a psychiatrist. But do you think -- forget 20-somethings and 30-somethings. Let's talk about 50-somethings here. Are we culturally comfortable enough with technology these days? We all have computers. But are we comfortable with it that we would put our phone line through it? WASOW: Well, the Internet was once something, like was described in the package before, that took a lot of technical expertise to connect to. You really needed to know all kinds of esoteric, obscure, arcane things. And now it's one of those things where it's relatively straightforward. You can buy a computer that, out of the box, connects you to the Internet. That's what's going to happen with voice-over I.P. or this sort of Internet telephony. It's a little bit complicated now. It is going to get to the point where, you take a regular telephone, you plug it into a box and, boom, you're on. So we're in this transition area now, but it is really going to be fairly dramatic soon.

BROWN: And is that literally a regular telephone? Could I take the regular telephone that is in my house and, if I had the right boxes, and just plug it into there instead? 

WASOW: Take your regular telephone and plug it in. And that's a big evolution on what it used to be, which is where you had to wear a headset and sit in front of your computer. 

BROWN: And you can only talk to other people who are connected, right?

WASOW: Exactly. 

BROWN: OK.Looking out there, if this is in fact the future, is it just the future for making a phone call or is this the beginning of yet another revolution that may or may not actually play out? 

WASOW: There are a lot of other things besides cost and besides making a phone call that are the kind of features you can wrap around. So what we are looking at here is that, eventually, you'll see phones that have the kind of intelligence and capacity of a regular P.C. now. And when you put that intelligence in the phone, there are all sorts of new features, so that your phone can become like an ATM. You can do all sorts of things that you might have done on a computer. Plus, you can also do other kinds of things with phone call, like, I'm going to visit relatives for a week. I can have my phone, all my calls just route over to another location, because, on the Internet, that kind of fixed geographic capacity is no longer -- it's -- you're no longer constrained by being in a specific location. You can route those phone calls anywhere. 

BROWN: How long before you think this is really sort of the norm? 

WASOW: I think, over the next decade, you're going to see the old-line technology become -- it's so much more expensive and it's so much less efficient that it will become obsolete. 

BROWN: Now, just finally, you're young. You're hip. You know all of this. Do you have this as your phone?

WASOW: I don't.

BROWN: Oh, OK.

(LAUGHTER) 

WASOW: I use a conventional telephone. But give it a few years. And, I mean, the thing really to appreciate here is that, at some point, nobody will talk about voice-over I.P. It will just become the norm. 

BROWN: The phone.But you have not rushed out to do this yet? 

WASOW: I have not rushed out to do this yet.

BROWN: Will you call me when you do on whatever device you're calling me on? 

(CROSSTALK) 

BROWN: And then I'll wait two years and do it. 

(CROSSTALK) 

WASOW: It's a deal. 

BROWN: Good to see you.

WASOW: Likewise.

BROWN: Thanks for coming in.Ahead on NEWSNIGHT: train-spotting and the one block in Manhattan where the hobby of model railroading is being kept alive, if only barely. On CNN, this is NEWSNIGHT. 

(COMMERCIAL BREAK) 

BROWN: I didn't know that prime number had been lost. In the miracle on 34th Street, it was Gimbel's and Macy's and a little girl who wouldn't believe. This Christmas, the miracle on 45th street is Ralph and Allan and little boys, young and old, who still do. Here's NEWSNIGHT's Beth Nissen. 

(BEGIN VIDEOTAPE) 

BETH NISSEN, CNN CORRESPONDENT (voice-over): For half-a-century, for the half of American children with XY chromosomes, a Lionel train was a top Christmas wish, and more. It was a bonding experience, a rite of passage that could make a boy feel like a man and a man feel like a boy. Model trains still make lots of grown men feel like boys. 

UNIDENTIFIED MALE: I'm 50. Mentally, I'm still 16. 

NISSEN: But it's been years since the Santa's-lap crowd had the words Lionel or HO Gauge on their Christmas lists. 

RALPH ISRAEL, MANAGER, MANHATTAN TRAIN AND HOBBY: Now it's mostly an adult hobby. I would say the most typical customers is probably somebody my age who is 50-ish. 

ALLAN SPITZ, OPERATOR, THE RED CABOOSE HOBBY: The joke is, you go to a convention and every year the average age is one year older. 

NISSEN: Not that there's anything wrong with that, although, on West 45th Street in Manhattan, in two rival hobby shops across the street from each other, you will find two trains of thought on whether the aging of the average model train enthusiast signals the demise of the hobby. At the Red Caboose Hobby Shop, a cave-like basement store with model trains crammed floor to ceiling between narrow gauge aisles, the operator, Allan Spitz, says model railroading is losing steam. Sales of model planes are still good, he says, but sales of tank cars have tanked. Sales of flat cars are flat. 

SPITZ: Unfortunately the patterns of business are declining, as times grow older and so do the people. There's no great influx of people playing with trains. 

NISSEN: Although there is a constant influx of new, remarkably realistic product, from New York City's subway cars so authentic, they come with their own graffiti, to brass reproductions of Union Pacific engines in exact turn-of-the-century detail. 

SPITZ: An engine like that with a 

(UNINTELLIGIBLE), I would ask $1,500 for. 

NISSEN: Model trains and train accessories are so expensive. Most items are now mass produced in China, which has brought the cost down. But the hobby can still be pricey. 

SPITZ: We have a Conrail electric there.

NISSEN: But the hobby can still be pricey.

KENNETH HARRIS, MODEL RAILROAD HOBBYIST: I probably spend about $2,000 a year on the hobby, between magazines, locomotive and car purchases, buildings, track. 

NISSEN: Harris spends much of that at Manhattan Train and Hobby, the cherry second-floor store just across the street from the Red Caboose run by Ralph Israel. Unlike Spitz, Israel believes model trains are still chugging alone. Customers may be graying, he says, but they are loyal, devoted. Many have been building layouts and collecting trains for decades. 

RICHARD LAMPETER, TRAIN MODEL HOBBYIST: I've been a model railroader for over 30 years. I started when I was a teenager. 

NISSEN: Richard Lampeter, now an engineer -- no, not the train kind, the blueprint kind -- still remembers his first train. 

LAMPETER: And it was on a four-by-eight board. And it was a number of used locomotive and trains. And we put it together in the basement. And that's how I got kind of hooked. 

NISSEN: 'Tis the season for hooking new potential enthusiasts. Many shops' sales now are to customers who want trains to run around Christmas trees. 

UNIDENTIFIED MALE: This one here is $179. 

NISSEN: Enthusiasts also welcome Christmas as an excuse to give trains as presents, introduce others to their pastime. 

HARRIS: You give a gift and they will get attracted. And that's what we need more of in this hobby, is to really get younger people into the hobby, because that's what will make it grow. 

NISSEN: Israel thinks -- well, he hopes -- that it's just a matter of time before the GameBoy generation is engaged by the small gauge, realizes just how interactive model trains are. Many are now computer-controlled, with chips that mimic the sounds of pistons, wheels on tracks. 

ISRAEL: The world is the world. The world changes. And we have to change with it. And, hopefully, there will always be people that want to do these kinds of things. 

NISSEN: Hopefully, there will. Beth Nissen, CNN, New York. 

(END VIDEOTAPE) 

BROWN: The only thing unchanging is morning papers, after the break. 

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(ROOSTER CROWING) 

BROWN: Oh, what a two and half minutes we have planned for you. We don't really plan this. Time to check morning papers from around the country and around the world. And this being Friday, we may throw in a surprise or two. But here's a normal start to things, "The Hartford Courant" of Hartford, Connecticut. A very good story on the front page. "Gifts, Lies Admitted, An Apology From Governor John G. Rowland," who, it turns out, had top state officials doing work on his residence and lied about it. Front page. Should be. "San Antonio Express-News." That would be San Antonio, Texas. I have some friends from Texas in tonight. "Parents Worried Sick By Flu. They're Changing Kids' Habits to Avoid Others at Favorite Playgrounds." Hmm. That's interesting. Also, they put the Halliburton story on the front page. "Bush Says Uncle Sam Will Not Be Fleeced." "The Atlanta Journal-Constitution." I find this a very interesting front-page story. And then there is a reason for it. "Trade Deficit Tops $41 Billion." That would, in my thinking, not normally make the front page of the newspaper, but look down below. "Doubt About Summit Boost. G8 Meeting" -- leaders of the G8 countries coming to Savannah -- "G8 Meeting Might or Might Not Produce a Windfall For Coastal Georgia." So they're starting to talk a bit about the economy and international trade and all of that. Give me the whale, if you will. Keiko, the whale who was "Free Willy" has died. This just came in. This will be on the front page of some papers tomorrow. And we wanted to get that in before we went.Now, how are we doing on time, David? 

UNIDENTIFIED MALE: Forty-five. BROWN: Just exactly the right amount of time. This being Friday, you don't get necessarily all the great papers. And sometimes you miss a good story. So we went out and bought a couple of more. "The Weekly" -- that's "The Weekly World News." Did you know this? Had you heard this on television today? I don't know. I hadn't. "Alien Army Heads For Earth." And, actually, I can't tell you this, but it will tell you where and when they're going to land. So you might want to run out and pick that up. And this in the news-you-can-use category. If you're ever arrested, try and look better than Glen Campbell when they take the mug shot, OK? Give me one more quick shot of that. And we'll check the weather. Thank you.The weather in Chicago is somewhere, isn't it? Sure it is. It's "hearty" tomorrow in "The Chicago Sun-Times." "Indiana Suspect Says, 'I'll Be My Own Lawyer.'" That's morning papers for the day and for the week. We'll update the top story and preview Monday after the break. 

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BROWN: Very quickly, recap of our top story, the president saying today Halliburton should repay the government if it overcharged for gasoline delivered to Iraq. Pentagon auditors believe it did by $61 million. Coming up on the program on Monday, it isn't just our own romance with photography. We'll look at "TIME" magazine's pictures of the year. Good for us. That's Monday right here on NEWSNIGHT.Have a wonderful weekend."LOU DOBBS TONIGHT" is next.Good night for all of us. 

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