L.A. Diocese Finalizing $660 Million Settlement; Campaign on to Save Georgia Death Row Inmate; Bush Calls for Middle East Conference
KYRA PHILLIPS, CO-HOST: It can't find peace. It can't restore youth or innocence or trust. But $660 million is the price for putting to rest hundreds of sex abuse claims against the Catholic Church.</s>T.J. HOLMES, CO-HOST: In Alhambra now, judge in Los Angeles to give his blessing to the largest church abuse settlement to date.</s>PHILLIPS: Hello, everyone. I'm Kyra Phillips at the CNN world headquarters in Atlanta.</s>HOLMES: And I'm T.J. Holmes, sitting in today for Don Lemon. And you are in the</s>CNN NEWSROOM. PHILLIPS: Live pictures just outside of Los Angeles, California. This is the Alhambra are affiliate, KVC, bringing up these live pictures. This is what we know so far. The two-alarm fire at a strip mall. It started just before noon Eastern Time, 9 a.m. local time. This is Valley Boulevard, just north of the 10 (ph) freeway. Part of the building, as you can see, has collapsed. No word on the injuries or cause at this time. We're told that the nearby business across the street had to -- had to evacuate as firefighters work this fire. We'll keep you updated on what's happening among firefighters. Now, the latest sex abuse cases to rock the Catholic Church. At this moment right now, leaders of the nation's largest archdiocese are in Los Angeles superior court, finalizing a landmark settlement. The Los Angeles Archdiocese will pay $660 million, the largest payout of its kind. More than 500 alleged victims will split the money, and it averages out to more than $1.3 million per plaintiff. The payouts will be based on the severity of the abuse. The deal ends more than five years of negotiations, but CNN's Kara Finnstrom tells us neither church leaders nor the plaintiffs are celebrating.</s>CARDINAL ROGER MAHONEY, LOS ANGELES DIOCESE, CATHOLIC CHURCH: Once again, I apologize.</s>KARA FINNSTROM, CNN CORRESPONDENT (voice-over): With those words the Cardinal Roger Mahony announced the L.A. Archdiocese's record settlement: $660 million to 508 people who have accused priests of sexual abuse.</s>MAHONY: It should not have happened and should not ever happen again.</s>FINNSTROM: The cardinal was then repeatedly asked whether he'd made mistakes handling the allegations.</s>MAHONY: Spiritually, because sometimes I honestly had reached the bottom. I didn't know what to do, what to do next. It seemed like everything I tried to do was wrong.</s>FINNSTROM: Sunday's announcement came one day before the civil trials were slated to start, trials where Mahony might have had to testify.</s>ESTHER MILLER, ALLEGED VICTIM: Mahony decided for a purely business decision to settle this so that he wouldn't stand in front of God and colleagues and the media.</s>FINNSTROM: Esther Miller is one of the alleged victims who belongs to SNAP, the Survivors Network for those Abused by Priests.</s>MARY GRANT, ALLEGED VICTIM: There's a picture of me around the age of 13, when I began to be repeatedly raped by a priest.</s>FINNSTROM: Mary Grant is another.</s>GRANT: No amount of money or guilty verdict will give back those kids that lost their childhood.</s>FINNSTROM: Mahony says the church is now using new screening programs and education to prevent future abuse. He says the settlement costs will largely be split between the archdiocese, insurers and the religious orders whose priests were accused. (on camera) The $660 million settlement that brings a legal end to these cases is by far the largest settlement in the child molestation scandal that's rocked this church. The next largest, $157 million in the Archdiocese of Boston. Kara Finnstrom for CNN, Los Angeles.</s>PHILLIPS: And a reminder: Kara is inside the courtroom. We're going to hear from her and possibly others as soon as the hearing ends. As for the priests accused of sexual abuse, Cardinal Mahony says almost all were eventually convicted. Sorry about the president's video there bumping up.</s>HOLMES: I think we want to get back to that now. Propping up the Palestinian government, a big job. In just a few minutes, President Bush will announce a big financial and diplomatic push. On the financial front, he will pledge $190 in additional U.S. aid. He'll also call for a conference this fall among Israel and its Arab neighbors. Right now Palestinian President Mahmoud Abbas is governing just half of the Palestinian territories. He retreated to the West Bank last month as Hamas fighters trapped his security forces and supporters in Gaza. Hamas is still in control there, jeopardizing the U.S.-backed two-state solution to the Israeli-Palestinian conflict. And of course, when the president speaks, we will bring that to you live here in the CNN NEWSROOM. Well, here in Georgia now. Time running out for Death Row inmate Troy Davis. He's due to be executed tomorrow for the shooting death of a police officer in Savannah almost 20 years ago. He swears he's innocent. And now many of the prosecution witnesses agree. CNN's Rusty Dornin reports.</s>MARTINA CORREIA, SISTER OF TROY DAVIS: I'm trying to answer all these e-mails and things about Troy.</s>RUSTY DORNIN, CNN CORRESPONDENT (voice-over): On a mission, Martina Correia works 18-hour days with one aim: to save her brother Troy's life. Troy Davis was convicted of killing Savannah police Officer Mark McPhail in 1989. He's scheduled to be executed on Tuesday. There was no physical evidence, no murder weapon found. Correia says that alone should cast doubt on the jury's guilty verdict.</s>CORREIA: When you only have eyewitness testimony, you have no physical evidence, people have fallacies. We make mistakes.</s>DORNIN: A case of a mistaken identity. That's what Davis' lawyers and supporters claim. This was the scene in 1989, this parking lot of the Greyhound bus station in Savannah, Georgia. Some witnesses say Davis and two other men were following a homeless man across the street, harassing him. Off-duty Officer Mark McPhail ran out to break up the fight. That's when some witnesses claim Troy Davis shot the policeman twice and ran. In Savannah, the manhunt was on. Davis surrendered to investigators days later. (on camera) Since Davis' conviction, the defense claims seven witnesses have changed and sometimes even contradicted their own story. During the trial, the defense claims it was another man that shot McPhail in this parking lot. Now some of the witnesses are pointing their finger at the same man, claiming that fear or reprisal and police coercion caused them to accuse Davis. (voice-over) Monty Holmes is one witness who changed his story. Now he claims he was coerced by police.</s>MONTY HOLMES, WITNESS: They were trying to get me to say that he did it. He didn't do it.</s>DORNIN: Major Everett Ragan, head of the homicide investigation unit back then. He dismisses allegations of coercion. And as for witnesses changing their stories, he doesn't believe it.</s>MAJ. EVERETT RAGAN, SAVANNAH POLICE: There's no doubt in my mind that this is the right person.</s>DORNIN (on camera): There's no element of doubt that it could have been the other man?</s>RAGAN: No.</s>DORNIN (voice-over): Sergeant David Owens has no doubts, either. He was a close friend of the victim, a man everyone called Mac. It was Owens you see here trying to save McPhail's life in the back of the ambulance in 1989. Owens now hopes the victim won't be forgotten.</s>HOLMES: Rusty Dornin joins us now after that report. We're talking about Davis here. A lot of questions. And he's been rejected left and right by the courts.</s>DORNIN: That's right.</s>HOLMES: What kind of chance does he have now? Any other court? Any other options?</s>DORNIN: Well, his last hope for a court hearing was dashed on Friday night in Savannah. Apparently, it denied him what they call an extraordinary motion for a new trial. Right now there's a clemency hearing in Atlanta. This morning the defense witnesses are testifying. This afternoon, the prosecution will testify. And the only thing the parole board can do is actually just commute his sentence to life without the possibility of parole. They can't pardon him or anything like that.</s>HOLMES: And you were telling me earlier about the history of hearings like this with the clemency board.</s>DORNIN: Right. And since 1977 they've had 47 of these hearings. And only eight of them have had their sentences commuted.</s>HOLMES: And also, you've talked to him over the phone, Death Row there. How is he holding up? How is he doing?</s>DORNIN: We spoke to him twice. The last time I spoke to him was on Friday afternoon. And the thing is I asked him -- they keep pointing the finger at this other man.</s>HOLMES: Right.</s>DORNIN: And apparently during his trial, he never did that. And we do have a piece of sound from that interview. Let's listen.</s>TROY DAVIS, DEATH ROW INMATE: Because I didn't want to be labeled as a snitch.</s>DORNIN: And that's the only reason?</s>DAVIS: Yes, which is stupid.</s>DORNIN: He didn't point the finger at this other person during his trial. It only came out later. Now you've got all these witnesses changing their stories and contradicting themselves. But as we said, his last hope is today. And we understand there may be a decision by sometime tonight.</s>HOLMES: He is on Death Row, and not to say -- it would have made difference. We're going to have to go ahead. I wish we could talk to more. We've got to get to the president here. Rusty Dornin, thank you so much.</s>PHILLIPS: The president calling for international support in a conference in the Middle East. Addressing reporters now.</s>GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... first American president to call for the creation of a Palestinian state. In the Rose Garden I said that Palestinians should not have to live in poverty and occupation. I said that the Israelis should not have to live in terror and violence. And I laid out a new vision for the future: two democratic states, Israel and Palestine, living side by side in peace and security. Since then, many changes have come. Some hopeful, some dispiriting. Israel has taken difficult actions, including withdrawal from Gaza and parts of the West Bank. Palestinians have held pre- elections and chosen a president committed to peace. Arab states put forward a plan that recognizes Israel's place in the Middle East. And all these parties, along with most of the international community, now share the goal of a peaceful, democratic Palestinian state, a level of consensus never before seen on this crucial issue. Past five years have also brought developments far too familiar in the recent history of the region. Confronted with the prospect of peace, extremists have responded with acts of aggression and terror. In Gaza, Hamas radicals betrayed the Palestinian people with a lawless and violent takeover. By its actions, Hamas demonstrated beyond all doubt that it is devoted to extremism and murder than to serving the Palestinian people. This is a moment of clarity for all Palestinians. And now comes a moment of choice. The alternatives before the Palestinian people are stark. There's vision of Hamas, which the world saw in Gaza, with murderers and black -- murderers in black masks and summary executions and men thrown to their death from rooftops. By following this path, the Palestinian people would guarantee chaos and suffering and the endless perfect perpetuation of grievance. They would surrender their future to Hamas' foreign sponsors in Syria and Iran. And they would crush the possibility of any -- of a Palestinian state. There's another option, and that's a hopeful option. It is the vision of President Abbas and Prime Minister Fayad. It's the vision of their government. It's the vision of a peaceful state called Palestine as a homeland for the Palestinian people. To realize this vision, these leaders are striving to build the institutions of a modern democracy. They're working to strengthen the Palestinian security services so they can confront the terrorists and protect the innocent. They're acting to set up competent ministries that deliver services without corruption. They're taking steps to improve the economy and unleash the natural enterprise of the Palestinian people. And they're assuring that Palestinian society operates under the rule of law. By following this path, Palestinians can reclaim their dignity and their future and establish a state of their own. Only the Palestinians can decide which of these courses to pursue. Yet all responsible nations have the duty to help clarify the way forward. By supporting the reforms of President Abbas and Prime Minister Fayad, we can help them show the world what a Palestinian state would look like and act like. We can help them prove to the world the region in Israel that a Palestinian state would be a partner, not a danger. We can help them make clear to all Palestinians that rejecting violence is the surest path to security and a better life. And we can help them demonstrate to the extremists once and for all that terror will have no place in a Palestinian state. So in consultation with our partners in the quartet, the European Union, Russia, and the United Nations, the United States is taking a series of steps to strengthen the forces of moderation and peace among the Palestinian people. First, we're strengthening our financial commitment. Immediately after President Abbas expelled Hamas from the Palestinian government, the United States lifted financial restrictions on the Palestinian Authority that we had imposed. This year we will provide the Palestinians with more than $190 million in American assistance, including funds for humanitarian relief in Gaza. To build on this support, I recently authorized the Overseas Private Investment Corporation to join in a program that will help generate $228 million in lending to Palestinian businesses. Today, I announce our intention to make a direct contribution of $80 million to help Palestinians reform their security services. A vital effort they're undertaking the guidance of American General Keith Dayton. We will work with Congress and partners around the world to provide additional resources, once a plan to build a Palestinian institutions is in place. All this assistance, we are showing the Palestinian people that a commitment to peace leads to the generous support of the United States. Second, we're strengthening our political and diplomatic commitment. Again, today President Abbas and Prime Minister Olmert sat down together to discuss priorities and resolve issues. Secretary Rice and I have strongly supported these meetings, and she has worked with both parties to sketch out a political horizon for a Palestinian state. Now we will intensify these efforts with the goal of increasing the confidence of all parties in a two-state solution. And we will continue to deliver a firm message to Hamas. You must stop Gaza from being a safe haven for attacks against Israel. You must accept the legitimate Palestinian government, permit humanitarian aid in Gaza and dismantle the militias. And you must reject violence and recognize Israel's right to exist and commit to all previous agreements between the parties. As I said in the Rose Garden five years ago, a Palestinian state will never be created by terror. Third, we're strengthening our commitment to helping build the institutions of a Palestinian state. Last month former prime minister -- British prime minister, Tony Blair, agreed to take on a new role as quartet representative. In his post he will coordinate international efforts to help the Palestinians establish the institutions of a strong and lasting free society, including effective governing structures, a sound financial system, and the rule of law. He will encourage young Palestinians to participate in the political process. And America will strongly support his work to help the Palestinian leaders answer their people's desire to live in peace. All the steps I have outlined are designed to lay the foundation for a successful Palestinian state in the West Bank and Gaza. A nation with functioning political institutions and capable security forces and leaders who reject terror and violence. With the proper foundation, we can soon begin serious negotiations towards the creation of a Palestinian state. These negotiations must resolve difficult questions and uphold clear principles. They must assure that Israel is secure. They must guarantee that a Palestinian state is viable and contiguous. And they must lead to a territorial settlement with mutually agreed borders, reflecting previous lines and current realities and mutually agreed adjustments. America is prepared to lead discussions to discuss these issues. But they must be resolved by Palestinians and Israelis themselves. Resolving these issues would help show Palestinians a clear way forward and ultimately could lead to a final peace in the Middle East, a permanent end to the conflict and an agreement on all issues, including refugees in Jerusalem. To make this prospect a reality, the Palestinian people must decide that they want a future of decency and hope, not a future of terror and death. They must match their words denouncing terror with action to combat terror. The Palestinian government must arrest terrorists, dismantle their infrastructure and confiscate illegal weapons as the road map requires. They must work to stop attacks on Israel and to free the Israeli soldier held hostage by extremists. And they must enforce the law without corruption so they can earn the trust of their people and of the world. Taking these steps will enable the Palestinians to have a state of their own. And there's only one way to end the conflict. And nothing less is acceptable. Israel has a clear path. Prime Minister Olmert must continue to release Palestinian tax revenues to the government of Prime Minister Fayad. Prime Minister Olmert has also made clear that Israel's future lies in developing areas like the Nagaf (ph) in Galilee, not in continuing occupation of the West Bank. This is a reality that Prime Minister Sharon recognized, as well. So unauthorized outposts should be removed and settlement expansion ended. At the same time Israelis should find other practical ways to reduce their footprint without reducing their security so they can help President Abbas improve economic and humanitarian conditions. They should be confident that the United States will never abandon its commitment to the security of Israel as a Jewish state and homeland for the Jewish people. The international community must rise to the moment and provide decisive support to responsible Palestinian leaders working for peace. One forum to develop that support is the ad hoc liaison committee, a group chaired by Norway that includes the United States and Japan, the World Bank and the International Monetary Fund, and Arab states such as Saudi Arabia, Egypt and Jordan. Today I call for a session of this committee to gather soon so that the world can back its words in real support for the new Palestinian government. The world can do more to build the conditions for peace. So I will call together an international meeting this fall of representatives from nations that support two-state solution, reject violence, recognize Israel's right to exist, and commit to all previous agreements between the parties. The key participants in this meeting will be the Israelis, the Palestinians, and their neighbors in the region. Secretary Rice will chair the meeting. She and her counterparts will review the progress that's been made toward building Palestinian institutions. They will look for innovative and effective ways to support further reform. And they will provide diplomatic support for the parties in their bilateral discussions and negotiations so that we can move forward on a successful path to a Palestinian state. Arab states have a pivotal role to play, as well. They should show strong support for President Abbas's government and reject the violent extreme -- extremism of Hamas. They should use their resources to provide much needed assistance to the Palestinian people. Nations like Jordan and Egypt, which are natural gateways for Palestinian exports, should open up trade and create opportunities on both sides of the border. Arab nations should also take an active part in promoting peace negotiations. Relaunching the Arab League initiative was a welcome first step. Arab nations should build on this initiative, by ending the fiction that Israel does not exist, stopping the incitement of hatred in their official media, and sending cabinet level visitors to Israel. All these steps, today's Arab leaders can show themselves to be the equals of peacemakers like Anwar Sadat and King Hussein of Jordan. The conflict in Gaza and the West Bank today is the struggle between extremists and moderates. And these are not the only places where the forces of radicalism and violence threaten freedom and peace. Struggle between extremists and moderates is also playing out in Lebanon, where Hezbollah and Syria and Iran are trying to destabilize the popularly elected government. The struggle is playing out in Afghanistan, where the Taliban and al Qaeda are trying to roll back democratic gains. And the struggle is playing out in Iraq, where al Qaeda insurgents and militia are trying to defy the will of nearly 12 million Iraqis who voted for a free future. Ceding any of these struggles to extremists would have deadly consequences for the region in the world. So in Gaza and the West Bank and beyond, the international community must stand with the brave men and women who are working for peace. Recent days have brought a chapter of upheaval and uncertainty in the Middle East. But the story does not have to end that way. After the wave of killing by Hamas last month, a 16-year-old girl in Gaza City told a reporter, "The gunmen want to destroy the culture of our fathers and grandfathers. We will not allow them to do it." She went on, "I'm saying it's enough killing. Enough." That young woman speaks for millions in Gaza, the West Bank, in Israel, and Arab nations and in every nation. And now the world must answer her call. We must show that, in the face of extremism and violence, we stand on the side of tolerance and decency. In the face of chaos and murder, we stand on the side of law and justice. And in the face of terror and cynicism and anger, we stand on the side of peace in the holy land. Thank you.</s>PHILLIPS: The president of the United States there at the White House talking about propping up the Palestinian government, which of course, has been in turmoil since the breakdown of it. The president saying that he's not only going to give a big financial and diplomatic push; he's also going to pledge additional aid of $190 million, in addition to calling for a conference this fall among Israel and all its Arab neighbors. He's hoping that the majority of that money will go towards security issues and trying to rebuild that government.</s>HOLMES: Want to take you back to this live picture out of Alhambra in California where we've been keeping an eye on this strip mall fire. You can see the flames are pretty much gone here. And so is this building. Several businesses will be lucky to salvage anything out of that building now. We are keeping a close eye on this. We're going to give you an update throughout the NEWSROOM and certainly when we come back here in a moment.</s>PHILLIPS: Straight ahead, a single shot, a single suspect. A singer falls dead during a nightclub performance. Wyoming police say her estranged husband is their only quarry.</s>HOLMES: Also, Bobby Kennedy made poverty a cornerstone of his 1968 campaign. Can John Edwards stir similar sentiment in '08?</s>PHILLIPS: And we're watching your money this hour. Will the Dow soar to a new record? You're watching CNN, the most trusted name in news.