Anthrax Anxiety Escalates on Capitol Hill; Anthrax Developments Rattle Investors
LOU DOBBS, CNN ANCHOR: Good evening. America battling terrorists in Afghanistan, while Americans battle anthrax anxiety at home. Good evening. Part of our nation's capital shutting down because of a growing anthrax scare. More than three dozen people have now been exposed to the bacteria nationwide. So far, no links to terrorists have been discovered. Tonight, we'll tell you how the United States is responding to the anthrax scare, and the efforts being made to bring more anthrax medicine to the market. We'll also have the latest for you on the military attacks against the Taliban and Al Qaeda network targets in Afghanistan, and what effect growing tensions between India and Pakistan could have on the world's antiterrorism war. Former Defense Secretary William Cohen will be here. As efforts move through Congress to choke off Osama bin Laden's money, we'll hear from one of those individuals whose assets have been frozen. And on Wall Street, new anthrax developments rattle investors, pressuring stock prices. The anthrax scare causing chaos in the nation's capital. Thirty- one people in Senate Majority Leader Tom Daschle's office were exposed to anthrax. Officials now warn that nasal swab tests can, however, produce false results. Three staffers of Senator Russell Feingold also exposed to anthrax. We'll have a live report for you from Capitol Hill in just a moment. New York Governor George Pataki, closing his Manhattan offices after tests found anthrax spores in a room used by the governor's security detail. Governor Pataki says he and his staff are taking antibiotics as a precaution. Nationwide, there have now been a total of four anthrax infections. Two of those were in Florida, one of them resulted in death. Two, in New York City, including an assistant to NBC news anchor Tom Brokaw. Investigators say the anthrax strain sent to Brokaw matches one found in the mailroom of a Florida media company. So far, there are a total of 38 known exposures to anthrax. They include staffers of Senators Daschle and Feingold. Eileen O'Connor is in Washington, D.C. Eileen, what is the latest on the anthrax investigation?</s>EILEEN O'CONNOR, CNN CORRESPONDENT: Well, basically, Lou, they're trying to determine exactly the kind of strain, and if the strains of all of the New York, Washington and the Florida case are matching. Now, we do know that the strain found in the letter sent to the NBC anchor Tom Brokaw, and the spores found in Florida -- as you know, there was no letters ever found down there. Apparently, according to CDC, that's the same strain. That's going to be very helpful to investigators. Another helpful piece of information today: the sample found in Senator Daschle's letter that was sent to his office -- that was, being told, is a common strain. A naturally occurring strain, a pure -- they were pure spores in that sample. Now, what does that mean? That means that it is not genetically altered, it's not resistant to antibiotics. That lessens the possibility that it was actually produced in a state-sponsored lab, a lab that would be used to produce biological weapons, the kinds that are designed to kill a massive amount of people, because it does respond to antibiotics. Very promising news, Lou, on the investigative side. On the one hand, because it eliminates that kind of state sponsorship. On the other hand, though, Lou, it's going to expand the list of possible suspects. So that's going to make it even harder for investigators.</s>DOBBS: Eileen, the first reports were that the -- the anthrax strain, if you will, the spores in Senate Majority Leader Tom Daschle's office, were of a very potent and presumably sophisticated nature. Now we're not so certain about that?</s>O'CONNOR: Well, what I've been told, by people who are experts in this, in the military area, is that virulence means the ability to cause disease, and cause the kind of cutaneous anthrax, or inhaled anthrax. So it was possible the kind that was found was very pure. But at the same time, sophistication, what does that mean? It wasn't sophisticated enough to be a weapon of mass destruction, but it was the kind that does require a bit of sophistication. It requires the kind of sophistication required in a college-level biochemistry degree. But, Lou, it can be produced in a laboratory, a regular laboratory setting. Now, what's going to be interesting for investigators now is to determine what the strain was, that was used. Because that's going to be able to lead them down the path of the source. A lot of commercial labs have been able to sell this to research facilities, where they could produce vaccines -- or perhaps it was stolen from a lab. And it's going to be the strain that's going to be almost like a fingerprint for investigators -- Lou?</s>DOBBS: Do we have any sense of the number of laboratories? Because irrespective, it would require, would it not, a laboratory in which to process this anthrax, no matter how pure, how virulent, how potent or not -- to create this anthrax and to distribute it?</s>O'CONNOR: It would. But someone could recreate that kind of laboratory. I've been told by sources who are familiar with the making of this that -- and with the strain and the test results -- it could be made in a home. If you have enough expertise, you could order the required materials, to process it, to grow it and to put it into this powdery substance. And you know, another interesting thing was this: the one found in Senator Daschle's office, we know, may have been transferred through a ventilation system, originally flurrying one to two microns, we're told, inside. But again, that's the kind that could still be produce in a laboratory setting. Doesn't mean it's in one of these very sophisticated state labs -- Lou.</s>DOBBS: At this point, Eileen, to very quickly recap, we know that we're dealing with two different strains of anthrax, suggesting two different sources?</s>O'CONNOR: We don't necessarily know that, because we don't know if they've compared that sample from Senator Daschle's office to the New York and Florida. We know the New York and Florida seem to be of the same strain, according to those tests. We do not know if Fort Detrick has now compared that strain to those two. If it's all the same strain, that at least will possibly a relief to investigators, at least, if not two different groups that they might be dealing with.</s>DOBBS: And Fort Detrick being the Army's principle investigative lab for chemical biological weaponry. One last question: Any advancement on the part of the FBI or the Justice Department? Any leads? are we any closer to knowing who is doing this?</s>O'CONNOR: They are very tight-lipped, Lou. But I've been told by investigators, they're not ruling out any possibility. But it does not seem right now if they're any closer. They haven't ruled anyone in or out.</s>DOBBS: Eileen O'Connor, thank you.</s>DOBBS: Well, for the latest now on the anthrax scare on Capitol Hill, we're going to Capitol Hill correspondent Kate Snow -- Kate.</s>KATE SNOW, CNN CORRESPONDENT: Well, Lou, precaution is being taken here on Capitol Hill tonight. Within the hour, about 7:00 Eastern time, about 55 minutes from now, all of the office buildings that are on either side of the Capitol, here, the House and Senate Office Buildings, are going to be shut down. They're going to be testing environmentally inside those buildings, testing for any kind of threat from anthrax. They're doing this, again, just as a precaution. Senate offices will remain closed until Monday, although we're told the Senate itself will technically be in session tomorrow. And the House, in contrast, will be out of session. They will not be due back here until next Tuesday. We're told a lot of members trying to make arrangements right now, to hold some hearings off campus, of you will, tomorrow. Some of them looking at hotels and other spaces they might be able to use, to continue with their work. As you mentioned already in the show, 31 people have now been found to be positive for anthrax exposure. That's not the same as infection. And authorities in Capitol Hill here urging a lot of caution about all this. They don't want people to overreact. In fact, a news conference was just completed, at which Senator Bill Frist, the only doctor in the U.S. Senate, was very clear. He said there is a threat here, certainly, but it's under control.</s>SEN. BILL FRIST (R), TENNESSEE: The good news, and the good news you heard today, is that this bug, this bacteria, that has a shell or spore around it, is sensitive to every single antibiotic for which it was tested -- that's penicillin, tetracycline, doxycycline, Cipro. And that's good news, and that means this thing is eminently treatable.</s>SNOW: There's no sign of anthrax being in the ventilation systems. At least, not at this point, Lou, although they are doing some further testing. Right now the only places its been found is in the office of Senator Daschle, and also in a mailroom on the Senate side. And everyone who has been exposed is being treated with 60 days worth of antibiotics -- Lou?</s>DOBBS: Kate, one last question. How long do we expect this week to take, both in the Senate and the House -- the House, of course, with far more offices to sweep?</s>SNOW: Well, we believe it will run through the weekend. House Speaker Dennis Hastert saying that they needed until Tuesday to complete the sweep. And we understand in the Senate that the sweep will take until Monday. So, presumably, they think they can get it all done by early next week.</s>DOBBS: Kate, thank you very much. Kate Snow from Capitol Hill. As this anthrax scare intensifies, the administration says the federal drug stockpile is adequate, and it is growing, and that two antibiotics, in addition to Cipro, are in fact approved to treat anthrax. Peter Viles has that part of the story.</s>PETER VILES, CNN CORRESPONDENT (voice-over): Along the Mexican border, Americans looking to buy cheap Cipro. In New York, even the governor is taking it, and there is a shortage. On Capitol Hill, a push to manufacturer generic Cipro. Against that backdrop, the Bush administration's point man on the issue went to Capitol Hill with a message: Cipro is not the only way to fight anthrax.</s>TOMMY THOMPSON, HHS SECRETARY: The FDA is officially approving today the use of two additional generic antibiotics for the treatment of anthrax: doxycycline and penicillin, because these drugs are available in generic forms and produced by several manufacturers. They will be relatively inexpensive, and readily available.</s>VILES: In fact, the government's anti-ant anthrax stockpile, currently capable of treating 2 million people for 60 days, and with plans to expand that figure to 12 million people, already relies heavily on penicillin and doxycycline. Only 10 percent of the stockpile is ciprofloxacin. Thompson insisting every strain of anthrax examined in recent days is sensitive to all three drugs. Scientists worry, however, about attacks using other strains of anthrax, developed specifically to resist some antibiotics. Even as the anthrax investigation widened, a developing issue surfaced: the government's preparedness to fight smallpox.</s>UNIDENTIFIED MALE: Is it accurate to say that smallpox is a -- if it could be obtained by a terrorist, would be a more threatening substance than anthrax?</s>THOMPSON: There is no question, because it's infectious and contagious.</s>VILES: The hearing, however, ended abruptly, an unfortunate sign of the times on Capitol Hill.</s>SEN. JOE LIEBERMAN (D), CONNECTICUT: I've just received a message and request from Senator Daschle that we recess this hearing for now, and that the two of you come with us to the joint caucus of senators.</s>VILES: Prior to this hearing today, the government had said it wanted a stockpile of 40 million vaccines for smallpox. Today Thompson informed the Congress that's not nearly enough. He wants 300 million vaccines of smallpox on hand -- Lou.</s>DOBBS: How soon?</s>VILES: He didn't say how soon. They think they can get the 40 by the end of next year, and perhaps even the 300. He met with drug manufacturers today to form a partnership to get what they need in a hurry, and he said he did get good cooperation from them.</s>DOBBS: You don't think it would be over</s>VILES: Not soon enough.</s>DOBBS: Thank you very much, Peter Viles. Here now are the latest developments in the attacks against the Al Qaeda and Taliban targets in Afghanistan. U.S. aircraft continuing to pound Taliban and Al Qaeda targets. The heavy bombing has been focused on front line troops, those located north of Kabul, the capital. And the Pentagon tonight says those airstrikes are hurting Taliban resistance. The assaults around the capital city mark the first time that the special forces AC-130 Spectre gunships, such as the one shown here, have been used in the area. The Pentagon says more than 2,000 missiles and bombs have been launched against Afghanistan since the war on terrorism began October 7th. And today, President Bush promised those bombs will continue to fall until the terrorists are rooted out.</s>GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: They're learning that anyone who strikes America will hear from our military. And they're not going to like what they hear.</s>DOBBS: International aid organizations, however, want the bombing to stop, at least for awhile. Those groups want to make sure the Afghan people have food before winter arrives. And British Prime Minister Tony Blair saying that the bombing will continue. Meanwhile, the Taliban has seized more than half the United Nations' food aid in Afghanistan, that hindering efforts to send that aid into Afghanistan. Tensions between India and Pakistan are intensifying, despite a trip to both countries by Secretary of State Colin Powell, who is trying very hard to ease those tensions. That friction could undermine antiterrorism efforts in the region. John Vause is in Islamabad, Pakistan with more for us now on that -- John?</s>JOHN VAUSE, CNN CORRESPONDENT: Yes, Lou. Well, U.S. Secretary of State Colin Powell was barely out the door before this latest development took place. We were at a briefing at the foreign ministry here, in Islamabad, when General Quereshi, a spokesman for President Musharraf, interrupted. He informed us that he believed that Indian troops were making threatening movements on that line of control. You might recall that the last couple of days, there has been sporadic fire on the border. India fired first. Pakistan retaliated. For its part, India says the troop movement, merely routine. Pakistan is not buying that. It's placed the army here on high alert. Really quite extraordinary, given the meeting earlier between first, Pakistan President Musharraf, and then Indian Prime Minister Vajpayee. Now, the other news from this part of the world: There have been more nighttime airstrikes. A couple of hours ago on the city of Kandahar, we've been told by our people on the ground in Kandahar, something like six to eight explosions. Very, very loud explosions, they're saying, in the vicinity of the Taliban headquarters. Kandahar, of course, is the stronghold for the Taliban and has been the focus of many attacks over the last 11, 12 days. Also being struck tonight, the city of Jalalabad, as well as Kabul. Earlier today there were some daytime raids on Kandahar, hit very hard. These pictures you're seeing now are the hospital. This is also some video that we shot, a CNN crew took, taken to that scene by the Taliban. They say this, in fact, was a bus, which was hit by a stray U.S. missile, or a stray bomb. The Taliban claim 18 people were killed in that attack. There's obviously no way to get that confirmed. Foreign journalists, very light on the ground, inside Afghanistan. But obviously, these nighttime raids continuing. And as we said, more nighttime raids in Kandahar -- Lou?</s>DOBBS: John, very quickly, a couple of things. One is, Kandahar has been under attack from almost the very beginning of this assault against the Taliban. The headquarters you say, apparently being struck at today, with six to eight explosions in the area. Has not the headquarters of the Taliban in Kandahar been attacked previously, and do we have an assessment of damage?</s>VAUSE: It's very difficult to get assessment of destruction, from our point of view. Yes, they have hit the Taliban, and they have hit them hard, and they have hit them before. And they're going back and they're hitting them again. In fact, what we're being told tonight is that these explosions are very targeted, very specific explosions in the region of the Taliban headquarters. As far as the extent of the destruction, we cannot be too sure. I guess it's very difficult to gauge how much destruction is taking place in Afghanistan. As one British newspaper put it, "rubble upon rubble."</s>DOBBS: Specifically, I was referring to the headquarters, John, of the Taliban in Kandahar. Does one infer then, that it had not been destroyed in previous attacks?</s>VAUSE: Well, I guess from what we're gathering at this point, is that the Taliban headquarters is a fairly extensive network of buildings. And while one part of it may have been hit, there are probably other parts which are still standing, which would warrant for these airstrikes to go back over to Kandahar, to hit these targets again. In fact, yesterday we were told that many of the missions which are being flown over Afghanistan now are mopping-up missions, to complete their original targets, sent out to hit. So that's possibly one explanation as to why they continue to hit the Taliban headquarters in Kandahar, as well as those strongholds in Kabul, and Jalalabad as well.</s>DOBBS: John, as you are reporting, the Pakistani military on high alert tonight because of the troop movements by India to the border. But over the two previous days we've had actual engagements at the border between India and Pakistani -- the Pakistanis at their outpost. Is there any report tonight of a third day of those attacks?</s>VAUSE: Essentially, you're quiet on that front at this stage. But as we have been reporting, the Pakistan military placed on high alert. What was interesting at that press conference, which I spoke of earlier, General Quereshi was very light on details as to what exactly was happening in the part of the world. He said he would not divulge details of exactly where this was taking place, because of security concerns. He would not actually give any indication of what Pakistan was doing, as far as any kind of military response. All he said was that Pakistan reserves the right to retaliate with force. That it's appropriate for any misadventure or mischief making on India's part. So as far as exactly what's happening in the area, Pakistan is very tight-lipped. India, playing it completely down, saying these troop movements are just routine.</s>DOBBS: John, thank you very much. John Vause tonight, from Islamabad. Efforts to choke off Osama bin Laden's money supply continue, as well as the attacks against the Taliban and Al Qaeda, targets in Afghanistan. Assets belonging to several Muslim charities have now been frozen, because it is believed, money from some of those charities are funneled to terrorists. Allan Dodds Frank talks with a wealthy Saudi businessman who ran one of those charities, whose assets have been frozen. This is his report.</s>ALLAN DODDS FRANK, CNN CORRESPONDENT (voice-over): Afghan refugees in Pakistan. According to the United States government, perfect cover for Muslim charities that actually served as fronts for Osama bin Laden. In its most resent asset freeze, the U.S. Treasury took aim at several charities and the people behind them. Perhaps the most notable, Yassin Kadi, a prominent Saudi businessman, whose Muwafaq Foundation, the government says is a front for Al Qaeda, Osama bin Laden's organization.</s>YASSIN KADI, SAUDI BUSINESSMAN: I have nothing to do whatsoever with bin Laden and his group. And I never financed them by any cent -- not even millions of dollars, but not even with one cent.</s>FRANK: The Treasury stands by its naming of Kadi, saying -- quote -- "The U.S. government has clear, convincing and credible evidence to put each individual and organization on that list." Kadi says his foundation spent between 10 million an $20 million on charitable organizations and schools, in Afghanistan, Pakistan, Sudan, Bosnia and Malaysia.</s>KADI: We send a lot of students from different countries of the world to continue their education, like countries like Malaysia.</s>FRANK: But Kadi's money has come up before. Three years ago, U.S. law enforcement froze $820,000 a Kadi company sent through Switzerland to affiliates of this suburban Chicago foundation, called the Koranic Literacy Institute. The U.S. government believes the money was intended to benefit Mohammed Salah, who the government claims is an operative of Hamas, a Middle Eastern terrorist organization.</s>KADI: This is a Koranic institute. We gave them a loan -- yes, I confirm that.</s>FRANK: Yes, he may have met Mohammed Salah, Kadi admits, but he says the money was to buy Islamic books like this one, and he has never filed suit to get his money back from the Chicago case. Kadi says he's talking with American authorities and has a message for the United States.</s>KADI: These days, you need friends. You don't need more enemies. You have to make sure not to point finger on people, on innocent people. We like -- we have nothing to hate about America.</s>FRANK: Kadi told me his books and audits will be in order shortly, and available for examination. And he insists his books will prove the foundation never gave any money to bin Laden, even unwittingly -- Lou?</s>DOBBS: That's quite a statement. Is he saying, in point of fact, that he will open up all of his books and operations to U.S. agencies?</s>FRANK: Well, he told me he would let me look at them, on the phone yesterday. We'll see if he lives up to that.</s>DOBBS: We'll certainly take him up on that. Allan, thanks very much. Allan Dodds Frank. Well, now, for more on the money, the Taliban and the situation between India and Pakistan, we are joined by Mansoor Ijaz. He lived in Dubai. He knows how easy it is to hide money. He is the chairman of Crescent Investment Management, handling nearly $1 billion in investments. He has experience negotiating as well with the Taliban. Last year he brokered a cease-fire between India and Pakistan in Kashmir. Sir, it's good to have you with us.</s>MANSOOR IJAZ, CHMN. CRESCENT INVESTMENT MGMT: Thank you for having me, Lou.</s>DOBBS: Let's start first with Kashmir, which is one of the most intractable political situations, and occasionally military situations, in the world. The movement of Indian troops, the heightened state of alert there, both between India and Pakistan, what do you think is going on?</s>IJAZ: Well, I think this was all started by a terrorist attack in Srinigar, which is the capital of the Indian side of Kashmir, a few days after the September 11 tragedy here in New York City. And the Indian government argued that if the United States was going to help stamp out terrorism in Afghanistan, they might as well go ahead and stamp it out in the Pakistan side outside of Kashmir, and with Pakistanis themselves. So I think the Indians are right now reacting to something that, in my judgment, causes a lot more tension than it needs to. And, far from troop movements being normal or anything of the sort, there's no routine troop movements between India and Pakistan under any circumstances. And the problem now is that the military movements with the aircraft that happened today, those are very similar to what we saw during the cargo crisis two years ago, that brought General Musharraf to power.</s>DOBBS: And do you believe, first, that this is simply a transitory act by the Indians, to establish with Secretary of State Powell being in the region, that the Indian interest will be preserved here to remind Secretary Powell, President Bush, that Pakistan is not the sole player here?</s>IJAZ: Well, it's unfortunate that that's probably what's going on. And certainly, they didn't treat Secretary Powell very well by inviting him in, having discussions and then the minute he left Indian airspace, moving their military aircraft to the front lines. But the larger problem here is that, as a coalition partner, if India, as a democracy, has a capacity to run a country of a billion people, they ought to understand the value of having to stamp out terrorism in Afghanistan first, before we go after other types. Because the terrorism in Afghanistan is a very different breed. That is against civilization. The terrorism in Kashmir is an extension of a freedom movement that's going on there for the last 50 years. It's a different type of movement altogether.</s>DOBBS: You talk about democracy. As my friends in India remind me, it is the longest-running free democracy in the world. Moving from the situation between Pakistan and India -- and after all, it is what's going on in Afghanistan who's creating all of tension there -- how does the progress of the war look to you against the Taliban and the Al Qaeda, to this point now -- and it's well into its second week?</s>IJAZ: Well, it's pretty clear that we have probably taken most of the military installations that we needed to. But unfortunately, that's not really what we have to achieve in this ground campaign that's going to be coming up in the not-too-distant future. And we're not going to have very much time to execute that before the Muslim holy month of Ramadan starts, on November 17th. The difficulty that the Defense Department and the war planning department, if you will, faces right now is, one, to get the American commando troops in there efficiently. And once you get them in there, then you have to get them out, get whatever we want, out of those caves as quickly as possible.</s>DOBBS: And amongst the things that, obviously, are wanted, would be the Al Qaeda and specifically, Osama bin Laden, should he be there.</s>IJAZ: Yes.</s>DOBBS: Relying, as it appears the United States and Great Britain are now, on the Northern Alliance, and these troops supporting the Northern Alliance, as they try to unseat the Taliban from power, do you think that's going to be a sufficient solution, going forward, for Afghanistan?</s>IJAZ: the Northern Alliance by itself cannot be, because the majority of the population Afghanistan are Pashtuns.</s>DOBBS: Right.</s>IJAZ: But what people are not paying attention to is that the Taliban don't necessarily represent all Pashtun, either. They are, essentially, a student militia that has grown into something different. And so the opportunity that's before us is to reach out, once we have removed these radical minds from the scene -- to reach out and have a dialogue with those people in the Pashtun tribes that are still reasonable people to talk to.</s>DOBBS: Of the many things that are not clear tonight, it is clear we're a long ways away from that point at which that's going to be relevant, unfortunately. It's very good to have you with us.</s>IJAZ: Thank you for having me.</s>DOBBS: Thank you. Coming up here next, we'll take a look at the future of the skyscraper after the terrorist attacks of September 11. And Former Defense Secretary William Cohen will be here to give us his insight on the battle against terrorism in Afghanistan, and against terrorism in this country.