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CNN LIVE SATURDAY
FBI Investigates Possible Isaeli Spy At Pentagon; Republicans Descend on New York City
Aired August 28, 2004 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: It is 12:00 p.m. in New York, 8:00 p.m. in Baghdad. I'm Fredricka Whitfield. Welcome to CNN LIVE SATURDAY. Ahead this hour, Republicans descending on New York as are thousands of demonstrators. Live with protesters and a preview of the convention.
Also, a possible a possible spy at the Pentagon? What information the FBI has revealed about the investigation and which allied nation may be involved.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The state of Wyoming really thinks there will be a terrorist related strike in this state?
(END VIDEO CLIP)
WHITFIELD: Millions of dollars spent on defending against terror attacks in rural areas of the country. Why so much?
But first, here are some stories now in the news. Two Brooklyn men are under arrest in an alleged plot to blow up a subway station in midtown Manhattan. Officials said the men failed to obtain any explosives and so far there's no evidence the plot had anything to do with the Republican National Convention. Stay with us for live report coming up in about 30 minutes.
Authorities now have more reason to suspect terrorists may have been behind the downing of two planes in Russia this week. Russia Security Service confirms traces of the explosive substance hexogen have been found in the wreckage of both aircrafts. Hexogen has been used by guerrilla groups including Chechen rebels.
A spy in the Pentagon? The FBI says it has evidence at least one mole possibly working for Israel could be operating inside the Defense Department. We'll have a live report from the Pentagon coming up in about 30 minutes, as well.
Just two days from now the Republican National Convention gets underway in the Big Apple and already protesters are assembling. In Brooklyn, a big demonstration by Planned Parenthood and other groups is on its way. Jason CNN's Jason Carroll is there in Brooklyn with a live update.
Hi Jason. JASON CARROLL, CNN CORRESPONDENT: And hello to you Fredricka, the protest here is loud, but it is a peaceful one. As you said we're standing here in Brooklyn at a park, we'll take look at the number of people that have showed up for this Planned Parenthood demonstration. This rally is actually just about to wrap up, but the demonstration will be far from over. Tough to estimate the number of people that out here now, but I think it's safe to say they are in the thousands. What's going to happen is you're going to have a rally here at this park and then after that all of the people you see out here are going to march across the Brooklyn Bridge and they're going to go -- they're going to end up at city hall where they will hold a second rally. Now joining them -- all of those people in that march is Kathleen Turner. She joins us here now.
You've been a member of Planned Parenthood, this organization, for what, you told me 30 years.
KATHLEEN TURNER, ACTRESS: I believe -- I'd say 30 years, yes.
CARROLL: Yeah, and you were -- we were also talking about the timing, the timing for you at this point of this organization to get your point across could not be better. Tell us why?
TURNER: Well, we have to -- I mean, we're here today because in New York City the republican convention will start on Monday. They are already coming in. We want our agenda and the issues of choice to be very clear, on top of the list.
CARROLL: Now, I know that some of those were saying that this is a nonpartisan event. We were talking earlier, and I think it's safe to also say that most of the people out here do not support the president and his agenda when it comes to abortion -- yes?
TURNER: Absolutely. I think we do have some republicans for choice here, I'm glad to say. But the truth is that the republican platform does not really support choice and this administration in particular has been incredibly hostile and extremely dangerous to our right to choose.
CARROLL: What do you -- also let's talk about demonstrations during this period of time.
TURNER: Sure.
CARROLL: Pre-convention, during the convention there's obviously going to be a lot of demonstrations. And I'm just wondering do you think in this day and age it's still an effective forum of displaying and trying to get your point across?
TURNER: Oh absolutely. First of all, it is so extraordinary for everybody involved in it. It is just -- it's great. And second place, to have -- to move a body of people like this, thousands upon thousands, it sends a very present, very powerful message. We're going to be doing all kinds of things this week. We're going to be reading the constitution because we think perhaps the republicans haven't yet. Things like that. CARROLL: All right, I think there will be some who would disagree with you on that namely there are those out here who are going to be out here who are opposed to abortion, who will be marching alongside you guys as well. How are you prepared to meet those people?
TURNER: Well, we know that the majority of this country is pro- choice. There is no doubt about that. And I hope that we are a loving and we are cherishing people. We want the quality of life. We want every child to be a wanted child. So I don't think that we should create any hostility and I hope people will respect us.
CARROLL: All right, Kathleen Turner, I want to thank you very much for joining us for joining us.
TURNER: Pleasure.
CARROLL: Have a good time out there, a safe time as well.
As soon as this rally wraps up here, they'll be marching across the Brooklyn Bridge. And again, there will be those opposed to abortion who will be marching, as well as we're going to see what happens when the two groups meet -- Fredricka.
WHITFIELD: And Jason, we already know that there are some groups who have had a difficult time getting the proper permits to organize in Manhattan since this group Planned Parenthood is making its way to lower Manhattan, do you have any understanding as to whether their march or protest in the city will be permitted?
CARROLL: Interesting you say that, because the organizer from Planned Parenthood say that they do have permits to march across the Brooklyn Bridge to hold the second rally at city hall when this one is over. As far as they understand it, the group opposed to them, those opposed to abortion, do not have the proper permits. So, in this situation these organizers say they have police on their side.
WHITFIELD: All right, it will be interesting to see. Jason Carroll in Brooklyn, for now, while Planned Parenthood makes its way to lower Manhattan.
Well, New York City police have already clamped down on protesters making more than 264 arrests. Arrested last night bicyclists sponsored by an environmental group called "Time's Up." Authorities say in all about 5,000 cyclists gathered at Union Square, many blocking hospital access and causing massive disruptions. The cyclists claim the bike ride was peaceful and police overreacted.
Also yesterday in New York, hundreds of parents with small children marched across the Brooklyn Bridge in a protest against President Bush.
The Republican National Convention officially kicks off on Monday and it all wraps up on Thursday night with President Bush accepting his party's nomination. CNN national correspondent Bob Franken is with us now from Madison Square Garden where everything will be taking place starting Monday. To give us an idea what's happening this weekend prior to the start of the convention.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, welcome to fortress New York, Fredricka. As we of course know very well, the story on Saturday and Sunday will be on the streets, outside Madison Square Garden, but it goes inside if everybody has a peaceful weekend. The big story goes inside the garden on Monday and that's when the other show begins.
(BEGIN VIDEOTAPE)
FRANKEN (voice-over): They say lineup is like putting lipstick on a pig. Compassionate conservatives, yes. Passionate ones, no. From night one the party will be putting what it regards as its best faces forward or best glosses, depending on the point of view. Doesn't matter, says the campaign chairman.
MARC RACICOT, BUSH CAMPAIGN CHAIRMAN: So, I think just a remarkable difference for the American people between the president and what he has to offer and his opposition in terms of their clarity, their consistency, and their steady hand.
FRANKEN: So senator John McCain, who has morphed recently from the picture of Bush irritant to pictures of Bush embrace is at the podium Monday evening. So is Rudy Giuliani, another so-called moderates and a reminder of the September 11 attacks here.
RUDY GIULIANI, FORMER NEW YORK MAYOR: We need someone who is going to understand that we have to remain firm against terrorists.
FRANKEN: Tuesday is another night of stars. Quite literally, with California Governor Arnold Schwarzenegger certainly a muscular party figure, but conservatives say he's weak on gun control and abortion. Maryland Lieutenant Governor Michael Steel will also speak that night. Who's that? Well that was the same question everybody asked about Illinois democratic senate candidate Barack Obama before he spoke to his convention. And that's not all. First lady Laura Bush also goes gently into the night Tuesday.
Wednesday the warm republican embrace includes a democrat, a nominal one in many eyes, Georgia Senator Zell Miller. Then Vice President Cheney, so the conservatives finally get their red meat man. And don't expect anything in his speech about gay rights.
And then of course Thursday's big finish, President Bush with a variation on his theme. Bush good, John Kerry not good.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're going to beat him come November.
FRANKEN: the president will deliver his remarks from a specially constructed theater in the round stage.
(END VIDEOTAPE)
FRANKEN: Of course like the democratic convention this will be extreme political theater, except for this case many of the main characters will be kept out of sight -- Fredricka.
WHITFIELD: All right, Bob Franken from Madison Square Garden, thanks so much.
Well, ahead of his party's convention, President Bush is stumping for votes. He's in a key battleground today, the state of Ohio. On his agenda, stops in Troy, Lima and Perrysburg. And CNN's White House correspondent, Suzanne Malveaux, is on the road with the president and joins us now via phone -- Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hey, good afternoon, Fred. As a matter of fact this is what's known as the I-75 corridor; really the backbone of republican Ohio and it is a three stop bus trip. This is the third bus trip he's actually taken through the buck -- Buckeye State. And what the president calls is this is fertilizing the grassroots. That's essentially getting those party loyalists out there, getting them revved up, excited to go.
We saw, according to Bush aides, about 20,000 who attended just this last stop in Troy, Ohio. And really it is about, what Bush aides are saying, is echo politics, get your party faithful out there, and then really engage in people to people door to door, getting out the message from the president, trying to win those undecided and swing voters to vote for him. And really the big emphasis here, it's not only on Iraq, but as you know, Ohio, it is really all about the economy, as well. The president essentially making a comparison between his economic policy of tax cuts and tax relief to what the he calls Kerry's policy, which he says, will Kerry's tax only those who make $200,000 or more, but he says that's the small businesses who are going to be taxed and here in Ohio, small business is big business. So, that is the main message that the president is making along the way.
He's shaking a lot of hands, feeding a lot of folks and, of course, sending out his message that he believes his economic plan is the way to go. And, Fred, this is not the last time we're going to be here, as a matter of fact, next Saturday I'll be back on this bus again. Again, he'll be shaking more hands trying to win this critical state.
WHITFIELD: Get comfortable on that bus.
Meantime, a possible distraction now, for President Bush with the former lieutenant governor of Texas making remarks of an apology and saying he was ashamed to help the president get into the national guard. How is the White House responding to this? If at all?
MALVEAUX: Well, that's right, Fred. As a matter of fact the White House is responding to this because I just spoke with Trent Duff, the White House spokesman, about Ben Barnes who has this video posted on the Internet, who talks about and says he's ashamed that he helped the president get into the Texas Air National Guard to avoid service and in Vietnam. Trent Duffy saying that, you know, the Bush family has denied that there was any type of influence that, first of all, got him into the guard and secondly he says it is -- it's no surprise that this is a partisan democrat who is making these statements and that essentially this was an issue that was addressed five years ago and he says there is really nothing new.
WHITFIELD: All right, Suzanne Malveaux traveling with the president in a battleground state of Ohio. Thanks very much.
MALVEAUX: Thanks Fred.
WHITFIELD: Well, undecided voters hold the key to the oval office. So, has the Bush-Cheney campaign figured out how to reach them? Some answers now from CNN's senior political analyst, Bill Schneider joining us from New York.
Good to see you, Bill.
WILLIAM SCHNEIDER, SENIOR POLITICAL ANALYST: Hi, Fredricka.
WHITFIELD: Well, is there any specific strategy to speak of that the Bush/Cheney camp is using to try to appeal to the undecided voters?
SCHNEIDER: Well, you heard Bob Franken talk about the moderates who are going to be speaking at the convention. I imagine even Dick Cheney will give a fairly low key speech if they try to fire up the troops, passion in that room, they're going to have a problem because what the undecided voters are looking for is someone who can unite the country. Bush's biggest vulnerability right now is that he got elected on a promise to be a uniter, not a divider, and the country is more divided than ever. He's got to reassure those undecided voters that he can unite the country, despite the record of division, and that he's not a reckless or dangerous president. That's what they're worried about.
WHITFIELD: And so, perhaps to exemplify that, being a uniter not a divider by having somebody like Zell Miller, a democrat, having someone who is considered moderate, Arnold Schwarzenegger, all of these people under the same roof?
SCHNEIDER: Schwarzenegger, McCain, Pataki, Giuliani, they're all moderate republicans, some conservatives are grumbling. But, I'll put it this way, the more he fires up the audience at Madison Square Garden, the more trouble he's going to be in with undecided voters.
WHITFIELD: Well you have to wonder, even though a moderate is being described for a John McCain, it also interestingly opens up another can of worms being that he really helped father the reform of campaign -- you know, moneys and how they're being spent and now he is encouraging President Bush to condemn these Swift Boat ads. He hasn't -- Bush hasn't necessarily done that, but you have to wonder what their relationship really is going to be like behind the scenes as well as what we're seeing in front of the scenes with a lot of hugging and handshaking, but you know, how genuine is that?
SCHNEIDER: Well, it's very strange bedfellows as usual in politics, but I remind you that this past week President Bush and John McCain actually joined forces in a lawsuit to do exactly with President Bush says he wants to do, ban all 527's, the so-called independent expenditure groups, like the Swift Boat Veterans, like MoveOn.org PAC, which running independent ads.
The idea, President Bush's idea is none of those ads should be running because you know what? The democratic groups, the pro-Kerry groups have been spending a lot more money so far on those ads than the pro-Bush groups.
WHITFIELD: All right, Bill Schneider thanks so much for joining us from New York. Of course we'll seeing a lot of you throughout the week.
And still much more coverage of the Republican National Convention coming up at 2:00 Eastern, we're live with political analyst, Ron Brownstein on what bounce the Bush/Cheney ticket may get from this convention.
Also, CNN's special convention coverage kicks off Sunday night at 8:00 Eastern. And all new "CNN Presents" on the mission of George W. Bush. And at 9:00 Eastern, a special edition of "Larry King Live." At 10:00 Eastern, the RNC preview with anchors Wolf Blitzer and Judy Woodruff, and we invite you to join CNN Sunday night.
Well, the three week battle in Najaf is over as long as a new peace deal holds. Ahead on CNN LIVE SATURDAY, we'll profile a key figure behind that truce deal.
Also, the women's U.S. basketball team lives the golden dream. We'll have the latest from Athens.
And this:
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: According to department of Homeland Security, California and New York will spend about $11 per person on homeland defense. Wyoming's per capita spending will be four times that amount, $45.22.
(END VIDEO CLIP)
WHITFIELD: Four times the spending for the smallest state, population-wise, in the country? CNN's Drew Griffin takes an in-depth look at why Wyoming is at the center of a counterterrorism spending spree. This is CNN LIVE SATURDAY.
(COMMERCIAL BREAK)
WHITFIELD: Let's check the headlines from Iraq this hour inside our situation report. Gunmen open fire on a professor in the northern city of Mosul today, killing her as she headed for work. The scholar headed the translation department at Mosul University.
Fighting today between militants and U.S. forces in Baghdad's poor neighborhood of Sadr City, officials say, three people have been killed in the skirmishes and elsewhere in Baghdad, mortar attacks today, left two Iraqi civilians dead. Struggling to find normalcy in Najaf's old city this weekend following three weeks of fighting, decomposing bodies in homes on the streets there, are slowly being collected, this after Shiite clerics brokered a deal to end the fighting between insurgents, Iraqi, and American forces this week. U.S. Marines pulled back from the center of town, but remained ready to step in if there is any more trouble. Hundreds of fighters loyal to radical cleric Moqtada al-Sadr died in that fighting. The Iraqi government is urging al-Sadr to join the political process now that his followers handed over their weapons.
Well, the grand Ayatollah Ali al-Sistani brokered the Najaf peace deal with rival, Moqtada al-Sadr. The ailing elderly cleric is the most prominent Shiite religious figure in Iraq and his stature is rising. Rob Sobhani is a professor at Georgetown University and he joins us from Washington to talk about the Ayatollah.
Good to see you, Professor.
PROF. ROB SOBHANI, GEORGETOWN UNIVERSITY: Good morning, Fredricka.
WHITFIELD: Well, will the Iraqis give all of the credit to Ali al-Sistani and none to the interim government?
SOBHANI: Well, hopefully they will give some to the interim government, because they were the ones who actually, probably behind the scene, urged Ayatollah Sistani to return quickly from his medical treatment in London. But, yes, the fact of the matter is that Ayatollah Sistani is now the man to be looked upon in Iraq for the big decisions and that means a plus for the U.S. because it means peace. But on the negative side it means that whatever Ayatollah Sistani decides, the United States will have to go along with.
WHITFIELD: But, then publicly won't people believe that it was Moqtada al-Sadr's idea to reach out to the Ayatollah saying, "I'll hand over the keys, but only to the Ayatollah?"
SOBHANI: The position of Moqtada al-Sadr got weak when the Ayatollah Sistani decided to enter into the fray. There is a hierarchy in Shiasm. The Shia are the majority in Iraq, and Ayatollah Sistani is the Grand Ayatollah, not just an ayatollah, and so in that sense, Moqtada al-Sadr had really very little choice but to listen to Sistani. This does not mean that Moqtada al-Sadr will not at another point challenge Ayatollah Sistani, but for now, Ayatollah Sistani is the man to be reckoned with.
WHITFIELD: So, this 72-year-old man, Ali al-Sistani is powerful mostly by virtue of his age, that he's a senior Shiite religious leader and mostly really because of the Shiite majority giving a lot of respect to him. He has no army of his own, like Moqtada al-Sadr did. How is it that he is so respected across the board and listened to so thoroughly?
SOBHANI: Well, because when you have the title, Fredricka, "grand Ayatollah," it really shows that this man has gone through the whole process of religious training, he is truly a religious man. And, by the way, his philosophy is one in which religion and politics should be separate, and I think Iraqis are beginning to like that idea. Religion and politics need to be separated; the Iraqi's want to get back with their life. Moqtada al-Sadr is trying to derail this process, Ali al-Sistani, the grand Ayatollah, is saying we have a chance here, for the Shia to be empowered, we need do it peacefully, we need to do it within the democratic process. But, he brings to the table enormous, enormous amount of legitimacy because he is a revered Shia cleric and also, according to Shia tradition, a source of emulation. People actually listen to him when they have questions on religious matters.
WHITFIELD: Professor Rob Sobhani of Georgetown University thanks so much for joining us from Washington.
SOBHANI: Thanks a lot.
WHITFIELD: Well, there are substantial changes coming to America's prime intelligence agency, the CIA, President Bush, signed an executive order on Friday expanding the powers of the CIA director. That is seen as an interim step until a new national intelligence director position is created.
Last week republican Senator Pat Roberts proposed a major overhaul of all intelligence agencies. Coming up at 2:00 p.m. Eastern, an in-depth look at what these changes could mean to the CIA and other intelligence agencies.
Well, the new Olympic dream team, we'll tell you about the golden girls of women's basketball, while the men's hoopsters are shooting for bronze. A live report from Athens coming up.
(COMMERCIAL BREAK)
WHITFIELD: U.S. Secretary of State Colin Powell is canceling his planned visit to Athens for tomorrow's Olympic closing ceremonies. Anti-Powell protesters in Athens took that as a victory. No specific reason given by the U.S. other than what was called the press of business in Washington. Powell has now proposed visiting Greece in October.
Well, lots of final round action and more gold medal ceremonies as the summer games moved toward their conclusion in Athens. CNN's Michael Holmes is there and joins us with us a live update -- Michael.
MICHAEL HOLMES, CNN CORRESPONDENT: Hi to you, Fredricka. Good news for the U.S. women's basketball team. They took their third straight gold medal in the Olympic Games and they beat Australia to do so. The Aussies have not had a good run against the U.S. women, they've lost now 12 games in a row. The game was fairly tight up until the last quarter. The U.S. pulling ahead winning 74-63. And Russia beat Brazil for the bronze medal.
Now, men's basketball, of course, the U.S. dream team in their nightmare run, they're going to be playing off a bronze, this evening, against Lithuania. That's not going to be such an easy game, either. Lithuania are a very strong team. The gold medal game is going to be Argentina versus Italy. Of course, it was Argentina who knocked the U.S. off in -- to move ahead into the gold medal game. I think the U.S. basketball team is going to be pretty glad when this is all over.
The Argentineans will be playing, of course, for their first gold medal and they got another gold medal in football, soccer if you like. The Argentineans beating Paraguay 1-nil for the football gold medal. The two-time world cup winners get their first Olympic gold in 52 years and they have never won a football gold, hard to believe considering their World Cup efforts over the years, so we have Argentina winning the basketball, they're going to have two first time golds. They haven't won a basketball one, either.
Also, just very quickly, the men's four by 100 meter relay is on tonight, that's always a glamour event of these games. Have a look out for Maurice Greene, He's going to be running in it. They just named their four, they've go Shawn Crawford, Maurice Greene, Colby Miller, and Darvis Patton. Be watching for that one a little bit later on. We'll be back and we'll inform you of what went on the track. Eight medals are up for grabs -- Fredricka.
WHITFIELD: And Michael, hopefully the next time we see Maurice Greene, he'll have the tongue in his mouth. That's the picture. Thanks a lot, Michael.
HOLMES: Yeah.
(LAUGHTER)
WHITFIELD: That's the picture. All right, thanks a lot, Michael.
All right, South Carolina is keeping a close eye on tropical storm Gaston. We'll have the latest on what it might do.
Also, the case of a possible spy in the Pentagon. CNN live today continues in a moment.
(COMMERCIAL BREAK)
WHITFIELD: "Now in the News", tropical storm Gaston is spinning off the coast of South Carolina. The state's coastline is under a tropical storm warning. Forecasters predict Gaston could come ashore around Charleston tomorrow night. Meanwhile, coastal areas from Georgia to North Carolina can expect heavy rains.
New York City is a place for protests ahead of the National Republican Convention. Planned Parenthood is holding a rally today in Brooklyn and will march across the bridge to city hall in Lower Manhattan and some other groups marching today don't have permits and that could lead to arrests.
This flu season you may find a delay in getting your flu shot. The Centers for Disease Control says 4 million doses of a leading flu vaccine are contaminated. However, the CDC says that will only cause a slight delay in getting shots and there will not be a shortage. Only days ahead of the GOP convention, a possible bomb threat is averted in New York City. Law enforcement sources say two Brooklyn men were arrested in an alleged plan to blow up a subway station. CNN's Bob Franken is live from Madison Square Garden within some of the details.
And, Bob, about where in Manhattan was this expected to take place, this alleged plot?
FRANKEN: Well, first of all, we have a court hearing scheduled for this hour before a U.S. magistrate. We're hoping to get more details. There were two arrests. According to police, the arrests were the result of intelligence from an informant.
The plot, according to police, very sketchy reports, was some efforts, a conspiracy to perhaps blow up -- or at least do something explosive to the Herald Square subway top. That is only around the corner, a couple of blocks away from where we are.
Police are saying that thus far they're not reporting that there is any indication that there was a connection with the Republican National Convention. But, of course, that's happening at this very same subway area. As a matter of fact, there is another 34th Street stop in front of Madison Square Garden.
We know very little about the nature of the plot. We're told that one of the persons has been arrested is a Pakistani national, not much more than that. We're expecting a news conference from the police commissioner, Ray Kelly, following the hearing and perhaps we'll get more details.
Of course, there is a huge, huge police presence and connection with the Republican National Convention. Not only the massive security presence you see, the thousands of police, all the barricades, but a major intelligence effort. And according to police, an intelligence effort that is to say the word of an informant is what led to this arrest.
Many, many gaps to fill in this story. That's where it stands now, Fredricka.
WHITFIELD: All right. And apparently, the two arrested had not actually obtained explosives, as we understand it. Bob Franken ...
FRANKEN: That's correct.
WHITFIELD: ... reporting from Madison Square Garden. Thanks so much.
Well, the FBI is trying to figure out today what information from inside the Pentagon may have been improperly passed to a U.S. ally CNN's Kathleen Koch is at the White House with some of the details on that.
KATHLEEN KOCH, CNN WHITE HOUSE CORRESPONDENT: These allegations came to light here in Washington last night with senior U.S. officials telling CNN that the FBI does have evidence that there may be a spy for Israel working at the Pentagon.
One official tells CNN that this person, the suspect, an analyst to there, could have been in the position to actually influence Bush administration policy, both on Iran and on Iraq. This morning as President Bush left the White House for this all day campaign swing through Ohio, I asked him whether or not he was concerned about these reports, but he did not respond.
Sources say that the FBI investigation has been going on for many months and that more than one government employee is under investigation. CBS News, which first broke the story, does say that the alleged spy has ties to both Deputy Defense Secretary Paul Wolfowitz, as well as Undersecretary of Defense Douglas Feith (ph).
The Pentagon, in a statement said, quote, "The Department of Defense has been cooperating with the Department of Justice on this matter for an extended period of time. It is the DoD's understanding that the investigation within the DoD is limited in its scope."
A spokesman, meanwhile, for the Israeli embassy refuted the charges, saying, quite, "We deny these allegations. The United States is a Israel's most cherished friend and ally. We have a strong, ongoing working relationship at all levels. And it in no way would Israel do anything to impair this relationship."
Officials said the suspect involved allegedly passed classified information to Israel through a pro-Israel lobbying group called the American Israel Public Affairs Committee.
But in a statement, a spokesman for AIPAC (ph), said, quote, "Any allegation of criminal conduct by the organization, or its employees, is baseless and false. We are fully cooperating with governmental authorities and will continue to do so."
Sources tell CNN, though, that two AIPAC (ph) employees have been interviewed by the FBI in this investigation.
Very important to point out right now that, at this point, no one has been arrested and government officials tell CNN that not only has there not been a decision to prosecute, but there may indeed be no decision to bring any charges at all. And if charges are indeed brought, that they may not be charged with espionage.
Washington insiders do point out it is not unusual for friendly governments to have some access to certain classified U.S. information. So if these allegations indeed are correct, it may be possible that those involved did not know did not believe that they were engaging at all in espionage.
But here from the administration, really the only word we have on this officially today, from White House Spokesman Scott McClellan is he cannot comment on this ongoing investigation, but he does say, quote, "Anytime there is an allegation of this nature, it is serious" -- Fredricka.
WHITFIELD: Kathleen Koch from the White House, thanks so much. While on the campaign trail, President Bush is making stops in the Midwest on his way to Republican National Convention. The president is making three stops in Ohio today on his bus tour.
Mr. Bush began his tour today with a rally in Troy; he'll then visit Lima and Perrysberg later on in the day. The president won Ohio, and its electoral votes back in 2000. Polls in the state show this race, however, is extremely tight.
John Kerry, who is also facing controversy over his military service, is campaigning through the Northwest today. Senator Kerry is in Washington State again today and he has a rally at the Tacoma Dome. And Kerry rallied supporters in Everett yesterday. He also attended a fundraiser in Seattle.
The senator is leading in the polls in Washington state. Washington hasn't voted for a Republican president in 20 years.
The electoral college will ultimately determine which candidate will win the White House. A CNN analysis of electoral votes finds President Bush has a small lead over John Kerry. If the election were held now, Bush would receive 274 electoral votes compared to 264 for Kerry. A candidate needs 270 electoral votes to win the presidency.
This programming note, CNN will have much more from the RNC on "Inside Politics Sunday". Among Judy Woodruff's guests, Nicole Devonish, the communications director for the Bush/Cheney campaign.
Wyoming may not be the first state you think of as a terror target. But it leads the nation in federal dollars spent to counter the terrorism risk, and the reason might surprise you. Details coming up.
(COMMERCIAL BREAK)
WHITFIELD: A live shot now, just outside Madison Square Garden where any moment now, New York Police Commissioner Ray Kelly will hold a press conference possibly providing some details on the arrests of two in an alleged bomb plot at a subway station. When that press conference begins, we'll bringing that to you live here on CNN.
Turning now homeland defense and the dollar spent to protect the states. The allocation of Homeland Security funding has less to do with risk and more to do with population. Believe it or not, Wyoming has the smallest population of any state, yet gets more money per capita than New York. CNN's Drew Griffin travels to Wyoming and files this report.
(BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN CORRESPONDENT (voice over): It may seem unlikely, a remote chance, in this remote town that sits on the plain, but Douglas, Wyoming's 15 sworn police officers are ready.
UNIDENTIFIED MALE: There is four suits, two different types. Air cartridge pops out. GRIFFIN: They are ready for a chemical, biological or even dirty bomb attack.
CHIEF LORI EMMERT, DOUGLAS POLICE DEPT: We're very fortunate to be at the level we are.
Douglas Police Chief Lori Emmert says don't laugh, her city of 5500 sits on a major interstate. Last week Douglas hosted the state fair. And if anything happens here, 50 miles east of Casper ...
UNIDENTIFIED FEMALE: Have a nice day.
EMMERT: Thank you.
GRIFFIN: ...it is up to the chief and her officers to respond.
(on camera): Why does Douglas, Wyoming, need to protect itself from terrorists?
EMMERT: My feeling is that every emergency responder, fire, police or medical, should have the equipment they need to respond to an incident. And I don't know that state or boundaries negates that.
GRIFFIN (voice over): Douglas is one of many small towns across America benefiting from the fight against terrorism. The Homeland Security Act sends money across the nation to help first responders prepare for the next attack. Douglas purchased this mobile command post, new air tanks for its firefighters, radios, and every single police officer in Wyoming received chemical and biological defense suits thanks to federal dollars.
(On camera): Is this something you could afford without Homeland Security?
EMMERT: No. We could not afford it.
GRIFFIN: Kelly Ruiz is with Wyoming's Office of Homeland Security.
(on camera): Does the state of Wyoming really think there will be a terrorist related strike in this state?
KELLY RUIZ, WYOMING HOMELAND SEC. OFFICE: All we know is you cannot second guess a terrorist. Wyoming is strong in agriculture and energy. You just can't second guess and say where they will strike or where they're not going to strike.
GRIFFIN (on camera): Yet even during the height of the busy state fair, it is hard to imagine any terrorist would strike Douglas, Wyoming. Yet this town, and the state of Wyoming are spending more federal dollars per person defending themselves against terrorism than even New York.
(voice over): In fact, according to the Department of Homeland Security, while California and New York will spend about $11 per person on Homeland Defense, Wyoming's per capita spending will be four times that amount, $45.22 for every man, woman and child in the state.
How did it happen? In the aftermath of 9/11, Congress was pressed to react, swiftly passing legislation to help the country defend itself. And nothing could be quicker than plugging in an existing federal funding formula.
REP. CHRISTOPHER COX (R-CA), HOUSE SLCT. CMTE ON HOMELAND SECURITY: We used the same funding formulas for paving roads.
GRIFFIN: That's right. Road paving. Based, in part, on population, but also on such details as the number of postal roads in a state. Congressman Christopher Cox heads the House Select Committee on Homeland Security; he's pushing a bill that would change the formula.
COX: Terrorism funding isn't like paving roads. Terrorism funding, counter-terrorism funding, has to be focused on actual threats, actual vulnerabilities.
GRIFFIN: Cox says the current system pays little attention to actual risk. All states get money no matter the need this led to a counter-terrorism spending spree that in some cases has little to do with countering terrorism.
In Lake County, Tennessee, counter-terrorism money purchased a $30,000 defibrillator for a high school. The mayor said it would be good to have on hand for the district basketball tournament. Mason County, Washington, bought a $63,000 decontamination unit, the sheriff's department says it cannot currently use.
West Bloomfield, Michigan is waiting on a $217,000 check, Homeland Security money for fire prevention. In Grand Isle, Vermont, the sheriff's department bought a new four wheel drive pickup truck for winter patrols, it also pulls the new command center.
COX: Monies should be spent, according to the 9/11 Commission, according to risk, according to threat and that's what the pending legislation in Congress will do.
UNIDENTIFIED MALE: In the north arena, contestant number 208.
GRIFFIN: The bill is getting wide support in Congress. But that support is likely to wither in the Senate, where small states like Wyoming may not have an equal risk of terrorism, but they do have an equal vote. Drew Griffin, CNN, Douglas, Wyoming.
(END VIDEOTAPE)
WHITFIELD: Any moment now in New York City we're awaiting a press conference to begin involving the Police Commissioner Ray Kelly. You're looking at a live shot now outside Madison Square Garden. When that happens, we'll bring that you to live.
Politics and the city: New York is banking on a big payday from the Republican National Convention. Maybe you can, too. Details up next in our weekend getaway. (COMMERCIAL BREAK)
WHITFIELD: Before we get to our look at the weekend getaways, want to let you know we are awaiting a press conference out of Midtown Manhattan where the police commissioner is expected to talk a little bit more about the alleged bomb plot involving a subway station in New York.
All right. Well, weekend getaways, the Republicans are coming to New York. Many of them already there. And some New Yorkers are fleeing to the Hamptons just two days away from the start of the convention.
Is this a good time for tourists to pick up a Big Apple vacation deal? Christyne Nicholas is the president of NYC & Company, formerly known as the New York Convention & Visitors Bureau.
You are definitely open for business now, right? We know the convention is about to begin on Monday. But is that frightening off a lot of tourists, Christyne?
CHRISTYNE NICHOLAS, PRESIDNET, NYC & COMPANY: No, it is not. Keep in mind that the convention coming in New York City the last week of August is perfect timing for New York City. Most New Yorkers flee New York anyway right before Labor Day weekend. So this is really an ideal time to come to New York or if you are a New Yorker, you could be a tourist in your own town.
At NYC & Company we put together a number of programs and specials. Some are breaks for one, for example, where you have a number of hotels offering rooms at about 50 percent off, some of them. All you need to do is check out all the deals on nycvisit.com. Come to New York. We have the U.S. Open, one of the greatest tennis matches in the world, taking place in Flushing Meadow in Queens. The also have the Mets and Yankees, both home.
Lots of wonderful concerts in Central Park and also, River-To- River Festival in Downtown Manhattan. And the Statue of Liberty just recently reopened. You should come back to New York if you haven't been there and help support us.
WHITFIELD: Are you finding that despite the sporting events, always a huge lure for a lot of out of towners, given because of the fears that may come with the convention, and just about a month ago the threats of a heightened terrorism alert level going up, are you finding that a lot of hotels are offering these deals because they were unable to book them in advance of next week?
NICHOLAS: Well, the deals were booked back in June. That's when we started preparing for this program, before the heightened terror alert and before any of the recent press with the conventions. But PricewaterhouseCoopers, an independent study, they are predicting that hotel occupancy for the week of the convention will be 87 percent in New York City.
And compare that to the same week last year where we had 73 percent occupancy. You see it is a 14 percent jump. So, obviously, we can attribute that to the Republican Convention, but also tourists feeling comfortable about coming to New York City.
WHITFIELD: What about the scheduled protest? Might that be a distraction or something that stands in the way of a lot of the tourists you're trying to lure from get around?
NICHOLAS: Some of the protesters are indeed tourists themselves. I read in "The Times" today there is a group coming in from Texas, that drove all the way from Texas. We're welcoming them as well. Providing that they're peaceful, political activists. We even have a program for them. They just need to pick up their button or download their coupon and they can take advantage of some of the savings and offers at about 100 different establishments.
All are welcome in New York City, regardless of your political affiliation. The only thing we ask is that you remain peaceful and respect New York City. We have been through a great deal and also our police department is the greatest in the world, which they're not going to tolerate any behavior that is going to be destructive or illegal.
WHITFIELD: All right, Christyne Nicholas of NYC & Company, giving us a perfect segue into the New York police department.
The police commissioner, any moment now is expected to hold a press conference in Midtown Manhattan. Just outside of Madison Square Garden to talk more about an alleged bomb plot involving a Herald Square Subway station.
Two people were arrested last night, we're expecting to get more tails from Commissioner Kelly.
We'll be right back.
(COMMERCIAL BREAK)
WHITFIELD: We're still awaiting a press conference to begin outside of Madison Square Garden involving the New York Police Commissioner Ray Kelly. When that happens we'll bring that to you live, right here on CNN. '
Still much more ahead on the CNN SATURDAY. In a few moments, as well, "In The Money", at 2 Eastern CNN LIVE SATURDAY in-depth on the lead up to Republican National Convention, from protest to what is at stake for the president. And at 3 it is "Next @ CNN", today looking at fish contamination and if it is safe eat fish caught in many rivers and lakes in America.
But first, Jack Cafferty with a preview of "In The Money".
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