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America's New War: Perspectives from Around the World

Aired September 16, 2001 - 02:00   ET

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


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MICHAEL HOLMES, CNN ANCHOR: A badly damaged fire truck pulled from the ruins of the World Trade Center. A poignant reminder to rescue workers of what is at risk.

COLLEEN MCEDWARDS, CNN ANCHOR: Investigators find links between two targets of terrorism, the attack on the Pentagon and on the USS Cole.

HOLMES: And killed in the line of duty, New York firefighters lay their leader to rest. Hello, I'm Michael Holmes.

MCEDWARDS: And Colleen McEdwards of CNN Center. This is CNN's continuing coverage of America's new war. United States President George W. Bush telling Americans, once again today, to prepare themselves for war.

HOLMES: That's right. Speaking at Camp David on Saturday, Mr. Bush said his national security council is planning a comprehensive assault on terrorism, and he vowed that America would win that struggle. No details of any pending assault have been released, but Mr. Bush is warning it will likely take time and it will take sacrifice.

MCEDWARDS: And in New York, the search for survivors continues through the night. But now, nearly five days after the tragedy, hopes are beginning to fade. No survivors were found Saturday; no one's been pulled out alive now, since Wednesday.

In the meantime, a second man is being held as a material witness in connection with the attacks. The first material witness was arrested Thursday at Kennedy Airport in New York. A total of 25 people are being questioned. Authorities say, evidence so far is strengthening the case against chief suspect, Osama Bin Laden.

HOLMES: Thousands of mourners gathered at a funeral for New York City Fire Chaplain, Michael Judge. He was killed administering the last rites to a dying firefighter. Two other New York Fire Department officials also laid to rest Saturday, including the city's Fire Chief. And that, sadly, is only the start. More than 300 firefighters remain missing.

The investigation into Tuesday's attacks is the largest in United States' history. Authorities now say that two of the hijackers were on an FBI watch list. Eileen O'Connor has more on that.

(BEGIN VIDEOTAPE)

EILEEN O'CONNOR, CNN CORRESPONDENT (voice-over): They booked the tickets on American Airlines Flight 77, from Washington to Los Angeles, on Travelocity, using a New Jersey address -- a Mail Boxes Et Cetera -- and names U.S. officials confirm were known to them. Khalid Al-Midhar and Saleem Alhamzi. Once on board, together with Alhamzi's brother and an old roommate, a known pilot, they took over the flight, crashing it into the Pentagon.

Within minutes, the facade of a symbol of American strength crumbled. As the search and rescue effort continued, sources say the FBI was informed that Khalid Al-Midhar and Saleem Al-Hamzi were associated with Osama Bin Laden and the bombing of the U.S.S. Cole. Once source confirms Al-Midhar was seen on surveillance tape in Malaysia, meeting with the suspect in that bombing.

LEBARON COKER: One was kind of short, and the other two was tall...

O'CONNOR: Al-Midhar was a frequent visitor of Alhamzi and his brother, Nawaq, in the San Diego Apartment complex.

COKER: They was always together. They left, it was together; they come back, they was together.

O'CONNOR: They hung out a lot at the pool, despite telling their neighbors they were studying at a nearby college.

FREDDIE EVANS: You'd see three of them in the pool swimming, or you'd see the dude always looking out the window, another one outside the door on the phone.

O'CONNOR: At one point they left, telling one landlord they were in Arizona, living in different cities at different addresses, as it turns out, rooming with another hijacker aboard that plane, Hani Hanjour. Hani attended this flying school, CRM, Cockpit Resource Management, but left without a certification.

PAUL BLAIR, CRM: He was kind of a waste of time; he wouldn't show up for flights on time, didn't do his homework.

O'CONNOR: Not a promising student, but skilled enough to carry out the mission. Eileen O'Connor, CNN, Washington.

(END VIDEOTAPE)

MCEDWARDS: The Justice Department is releasing more information about the alleged hijackers and the terrorist network thought to have sponsored Tuesday's attacks. CNN has obtained photos of eight of those suspected hijackers.

We want to show you all of that now. From American Airlines Flight 11, which hit the World Trade Center's North Tower, Mohamed Atta, Waleed Alshehri, Abdulaziz Alomari, and Walled M. Alshehri. From United Airlines Flight 175, which hit the World Trade Center's South Tower, Marwan Al-Shehhi, and from United Airlines Flight 93, which crashed in rural Pennsylvania, Saeed Alghamdi, Ahmed Alhaznawi, and Ziad jSamir Jarrahi.

While the attacks showed the United States and the world that it is not easy to identify hijackers before they commit their crimes; but investigators have managed to identify some common traits.

Our national correspondent Mike Boettcher has that.

(BEGIN VIDEOTAPE)

MIKE BOETTCHER, CNN CORRESPONDENT (voice-over): To help them better understand the group of people that managed to successfully hijack four aircraft, investigators have put together a list of common characteristics of those 19 people. Let's take a look at the list.

The first two items, male, early 20s, that's obvious; but it also says they're likely to have Saudi Passports, likely to have visas issued in Saudi Arabia, and also clean-shaven and Western appearance.

Now, we also have another document, which was given as evidence in the African Embassy trial, and it is the Al Qaida training manual. Al Qaida, of course, the group U.S. officials say is the terrorist umbrella organization under Osama bin Laden. And this is their operational manual, the thing that they gave to their operatives worldwide, telling them how to carry out an operation.

We thought we would compare this to the common characteristics on the list. Let's look at items number three and four: likely to have a Saudi passport; likely to have visas issued in Saudi Arabia. Let's see what the Al Qaida training manual says about that. "All documents of the undercover brothers, such as identity card and passport, should be falsified."

Now that means, if you look at the common characteristic list, it says most of them have Saudi passports. It's very likely, if this was an Al Qaida operation, that those passports, or many of them, were falsified. Let's go back to the common characteristics list, the last item, "clean-shaven Western appearance."

Now, if you go into the operations manual, let's see what they tell their operatives to do in terms of appearance. It says, the photograph of the brother in these documents should be without a beard. So, it was followed, in this case, and there is one other item that is not a personal characteristic, but it's an operational characteristic.

Item number seven in the operational manual of Al Qaida when it talks about what targets to chose, says, "Blasting and destroying the embassies, and attacking vital economic centers." If this was an Al Qaida operation, they did follow their manual to a T.

(END VIDEOTAPE)

HOLMES: Rescue workers in New York are refusing to give up hope. They say they still believe there are people buried alive under the pile of destruction. Now, for more on this, let's go to our Gary Tuchman, standing by in New York. Gary, what can you bring us?

GARY TUCHMAN, CNN CORRESPONDENT: Michael, the World Trade Center Building and the surrounding area used to be one of the most pleasant and convenient places to work. You could take the subway right into the building; you didn't have to go outside. On a nice day, you could sit outside by the Hudson River, eat you lunch, look at the Statue of Liberty, look at the boats coming by. There was an observatory on the 110th floor, a great place to take children. They had virtual reality games, a beautiful view out the window. They had a lunchroom that looked like Central Park with trees. Now that's all gone.

What we have behind me, now, where the World Trade Center used to be is a cauldron of fire and smoke. And what's really incredible, and I've been here since the very beginning, but I still can't get used to the fact, basically, you have a graveyard behind me, with up to 5,000 bodies still buried in this rubble.

We have some pictures we want to show you, shot by a many who was one of the rescue workers who went out there the first couple of days to help out, and he brought his video camera there. The police are not allowing the news media to get too close to ground zero, so we're relying on this type of video to show you, and we want to give you a picture of the masses of steel that are piled up to 100 feet high, in places. It's literally like a mountain range, all the debris that is out there. It's estimated there are 600,000 tons of rubble; 22,000 tons have now been removed. That's less than four percent of the estimated amount of rubble.

But what is also there, are the victims, and hopefully, survivors. But for the last three days, not one survivor has been found, and that is very disappointing news, but they are still looking. Something that was found today, an extraordinary, poignant site: a fire truck. And this shows you how deep the rubble is. The fire truck was pulled out by crane out of the rubble. It said on it, "Ladder 18," it was completely destroyed. There were no people inside that fire truck. That gives you an idea of what they're contending with, here, at this rubble site here at the World Trade Center.

The World Trade Center consisted of 200,000 tons of steel, 14 acres of windows, and if anyone tells you they know how long it will take to clean this area up, they're not telling you the truth, because no one's ever experienced anything like this before. No one's ever dealt with anything like this before, and no one really knows how long it will take.

Michael, back to you.

HOLMES: Gary, as you've reported over past days, there is still hope for survivors, as there has been from the start, but as each day, each hour passes, that hope must fade a little. Is that effecting morale, there, on the scene?

TUCHMAN: It certainly is, Michael, because there was great hope, considering the fact that so many people are involved. There are 4,972 people missing. There was great hope they could find a great number of survivors, and they did find six survivors over the first two days. They found them in pockets under the rubble, so they weren't hit by the rubble; they were actually under the rubble, and they were able to dig and get them out, and they were hopeful they would find a lot.

And what really scares a lot of the rescue workers and diminishes their feelings right now, and makes them feel very badly, is the fact that these people who went through such horror could have suffered even more, for a period of hours or even days, waiting to be rescued, and then passing away while waiting for the rescue that never came.

HOLMES: All right, Gary Tuchman in New York, 2:11 on the East Coast, here. Thanks, Gary.

Well, mourners gathered in New York as three firefighters killed in the aftermath of the attacks on the World Trade Center were laid to rest.

The three were among the group of firefighters who rushed to the scene when the first plane struck on Tuesday. They included that beloved chaplain we mentioned before, Reverend Michael Judge, who had comforted colleagues for decades. He was killed by falling debris while administering last rights to a dying firefighter.

New York City Mayor, Rudy Giuliani, was one of the thousands in attendance.

(BEGIN VIDEO CLIP)

MAYOR RUDY GIULIANI, NEW YORK CITY: ... I believe, a recognition for many of us, that this is only the first group of funerals that we are going to have to conduct for our men and women, and so many whose lives were lost at the World Trade Center. My heart goes out to the men and women of the Fire Department, in particular, and their families.

(END VIDEO CLIP)

HOLMES: About 300 firefighters remain unaccounted for. Well, as rescue workers dig through the pile of rubble for signs of survivors, friends and families are also actively searching for their missing loved ones.

For more on that, let's go to CNN's Michael Okwu. He's at the Armory in New York, where thousands have been providing information on those still unaccounted for. Michael, what can you bring us?

MICHAEL OKWU, CNN CORRESPONDENT: Well, Michael, I can tell you that there is a very tired, weary feeling that has taken grip of this city. So many people have shed so many tears over the course of these days, and in the coming days, and, in fact, I'm beginning to hear it already, you will likely start hearing words and praises that are so often used at times like this, that they have a ring of cliche: words like "resolution" and "moving forward" and "returning to normalcy."

But, for so many people, possibly tens of thousands of people that may be connected to what they hope are still almost 5,000 lives underneath the ash and rubble at the World Trade Center, there will be no returning to normalcy. How they try to find resolution is by coming here. I am in front of the Armory, which is at 26th Street and Lexington Avenue in Midtown Manhattan, and here is where relatives can come forward and fill out, essentially, what is a seven-page form, where they give information to some of the rescue workers and some of the authorities, here, that might help connect authorities' investigation to identifying some of those people who have been recovered.

They are asked to give them all kinds of identifiable information, from the color of their ears -- I'm sorry, the color of their eyes and their hair, to any recognizable scares they may have, even the kind of nail polish they like to wear.

Over the course of the past few days, 3100 people, relatives, have passed through the doors behind me, and this, at some point today, the New York Health Department announced the fact that a company called Lab Corp, which is one of the biggest medical lab companies in the country, has offered to provide free DNA collections that may ultimately connect some of those bodies that have been recovered to real identification.

I spoke to one young woman earlier this evening, who is looking for her godmother.

(BEGIN VIDEO CLIP)

ANGELA CICCONE, GODMOTHER MISSING IN WTC: This is the only that they can identify, so we've come in with hair brushes, tooth brushes, her brother took a saliva sample for DNA, and everyone's willing to do anything, but it's just a matter of waiting.

(END VIDEO CLIP)

OKWU: Now, Lab Corp, as I mentioned, is one of the biggest medical lab companies across the country. They have 900 centers around the United States, and they've offered a number that relatives can call who are not in New York City, who don't have access to this particular armory and some of the sources here. And that number is 888-520-6952. I'll repeat that again, 888-520-6952.

There's been an incredible outpouring of emotion at this particular location, as New Yorkers try to get back to what they believe is a sense of normalcy. But, while some of us are thinking about what happens next, there are still so many people who are thinking and focused on perhaps what was. Michael.

HOLMES: Sense of normalcy, as you say, Michael, it's going to be a while before that comes back, and it'll probably be a different normalcy. You know, I've been noticing a lot of young people, out there, a lot of young people in New York City, wearing the red, white, and blue. You know, the younger generation, Generation Y, Generation X, whatever you want to call it, haven't been known for their patriotism in this day and age. Tell me your impressions.

OKWU: My impressions are this, that the impact, what has been felt, by what happened just some blocks south of where I'm standing, knows no boundaries. It knows no color distinction. It knows no ethnic distinction. It knows no age distinction.

New Yorkers are not known for being a compassionate lot, but if you walk around this town as I have in the past three or four days now, everybody is -- is been hit with this compassionate feeling. Just on my way down here, I saw a group of people who were standing and singing, and it looked like it was a group of people who didn't really know each other. They had come by, and some shop owner had his television tuned in to CNN; people were watching it; and another group next to them started singing.

There are so many stories like that across the city, and they involve all kinds of people of all ages and of all colors.

HOLMES: You're seeing it up close, too, Michael Okwu, thanks very much. I want to tell you that our Internet Web site provides a special service for those seeking information about people missing after the attacks. You can post the person's name, also their picture, on our Web site. You can see one of them there. Information on the missing can be sent to us, here, at missing@cnn.com. Obviously, that's an e-mail address.

OK, now let's update you on the latest developments as we know them, at the moment. The grim task of clearing debris from the fallen twin towers goes on in New York City. These are live pictures, now. Mayor Rudy Giuliani says authorities are taking it day-by-day, in deciding when the operation switches from a rescue to a recovery mode," as we've been discussing in the last few minutes.

And, more promising news on the investigative front. A Justice Department official tells CNN a second person has been taken into FBI custody in New York. Now, that man is considered a material witness in the terror attacks, as was the earlier man arrested.

President Bush is continuing to draw up plans for a U.S. response to the hijackings. Mr. Bush met Saturday with his National Security Advisers at Camp David. And he also called the leaders of Mexico and Spain as part of his effort to build an international coalition against terrorism. Colleen.

MCEDWARDS: All right, Michael. Well, should the United States decide to launch an offensive, and if that offensive is against Afghanistan, that is going to create its own challenges, in and of itself. It's a mountainous country far removed from most U.S. allies.

The closest and most likely launching place for any attack is Pakistan. And Pakistan's president, General Pervez Musharraf, has pledged to help the United States, but on the other hand, his is one of the few countries to actually maintain ties to Afghanistan's ruling Taliban. Well, two veteran diplomats say that dealing with terrorists in such a conflict would call for a new and demanding style of war.

(BEGIN VIDEO CLIP)

LAWRENCE EAGLEBURGER, FMR. SECRETARY OF STATE: This time around, we have a lot of enemies; we know some of them. We will find out more of them. They have an interlocking network; there's no question about that, and it's going to be much tougher to get at them, and it's going to be a much -- therefore, a much more complicated and long-term effort. The Iraq war was over in what, six weeks, whatever it was. That will not be the case this time. This is going to take some years to accomplish, and you have to hope and pray that the president can lead us all for that period of time, and keep the support up.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

HENRY KISSINGER, FORMER SECRETARY OF STATE: Countries have to be put on notice that safe havens for terrorists will no longer be accepted by the United States. These terrorists cannot undertake the actions that we have experienced last week, unless they have a base from which they operate, unless they have organization, communications. It takes long planning, and we cannot permit them the period of quiet in which they prepare and then they strike us.

(END VIDEO CLIP)

MCEDWARDS: Well, officials in Washington keep saying, keep suggesting, that the investigation does point to Saudi dissident Osama Bin Laden, so attention is turning to Afghanistan's ruling Taliban. The fundamentalist Islamic militia is believed to be giving Bin Laden sanctuary. Mind you, the Taliban has said that they don't believe that bin Laden could have had anything to do with these attacks. It's a poor country, they say; it would be impossible to train pilots there.

Meanwhile, fighters in the opposition Northern Alliance are mourning the death of their leader. A bomb attack last week mortally wounded Ahmed Shah Massoud, and Steve Harrigan joins us, now, by our videophone, from Northern Afghanistan, with more on this. Steve?

STEVE HARRIGAN, CNN CORRESPONDENT: Colleen, a very emotional funeral is just unwinding, here, in remote Northern Afghanistan. Thousands of Afghani villagers traveled from all around, many of them on foot, to pay their last respects to Ahmed Shah Massoud. Mr. Massoud, of course, fought first the Soviets, and then the Taliban, for more than the past 20 years, so a very emotional day here. His body arrived by helicopter. People were throwing roses on it, flowers, wailing, crying. A most emotional day, here, in remote Northern Afghanistan.

Now, as you know, Mr. Massoud was assassinated by a television camera that exploded just before the terrorist attacks in the United States. So what they're saying, here, his supporters say, that those two events are linked. They say the assassination of their leader is closely tied to the terrorist attacks in the United States. And we have the unique situation, here, of opposition figures in Northern Afghanistan calling for military action against their own country.

We've talked to high officials here in the Islamic State of Afghanistan. They say they want military action by the United States in Afghanistan, against the Taliban. They say they are ready to join in that fight, fighting side-by-side with U.S. soldiers, should those events come to pass. Colleen.

MCEDWARDS: Steve, how strong is this opposition? Help us understand exactly where it fits here?

HARRIGAN: It is a shifting coalition. They say they have about 15,000 regular fighters ready to go, perhaps as many as 15,000 irregulars, who would join them as soon as possible. They control about five to 10 percent of the country, and mostly they are located here in one of the most remote places on earth, a very mountainous dessert-like culture of Northern Afghanistan.

So, the question for the opposition here is how will they fare, after the assassination of their charismatic leader, Massoud? Will they be able to bind together and form a new leader, and eventually, will they be able to take part in any operations, should they come, against the Taliban? Those questions still unanswered. Colleen.

MCEDWARDS: You know, Steve, there's a lot of discussion right now in the United States about the difficulties that Afghanistan would create, if there were to be some sort of military action, and if it were to be against Afghanistan. You know a lot about that. You know the kinds of problems that the Soviets had there. What would be the challenges?

HARRIGAN: Certainly, anyone visiting Afghanistan, walking around here, looking at this terrain, it becomes readily apparent, just what an enormous undertaking it would be to carry on a war in this kind of terrain. Also, history, as you mentioned, the Soviet Union fought for ten years, here, against the Afghanis and were driven out. That defeat, really, in some ways helped to bring about the fall of Communism in the Soviet Union. So they failed for ten years.

Now, could the US, or could a coalition of Western nations do any better here? And what would the stakes be? History shows it would be a very tough fight, indeed. And the question is whether or not the Afghani opposition would help in such a fight. They say that they've been fighting the Taliban for more than five years. They say they've already lost thousands of lives in that fight, and they say they have the experience and the knowledge to help the U.S. or a Western coalition that perhaps might fight in Afghanistan. But so far, contacts between the two sides, according to opposition figures here, have been minimal. Colleen.

MCEDWARDS: CNN's Steve Harrigan in Northern Afghanistan for us, thanks. Michael, over to you, now.

HOLMES: OK, Colleen. Thanks very much. Pakistan and Iran both say they'll take steps to seal their very long borders with Afghanistan. Both countries are at risk of receiving a flood of refugees, in the even of any United States military strike on Afghanistan.

Some Afghanis already anticipating the strike; they're leaving their homes. Western aid agencies have already pulled out of Kabul, further worsening the situation for displaced Afghanis.

Meanwhile, there are eight international aid workers who have been caught in the middle of all of this. They are being held in Taliban custody, accused of attempting to convert Muslims to Christianity. Now, with the possibility of a military strike against Afghanistan, family members fear the detained aid workers may be in greater danger than ever before.

Sheilah Kast has that.

(BEGIN VIDEOTAPE)

SHEILAH KAST, CNN CORRESPONDENT (voice-over): 24-year-old Heather Mercer was excited last spring, about going to Afghanistan with a Christian aid group.

DARYL WRIGHT: She was trying to think of ways that she could really blend in to the culture, and she just really wanted to immerse herself in another culture.

KAST: But within five months, Mercer and seven other Westerners were arrested, charged with trying to convert Muslims to Christianity, a very serious charge in Afghanistan. And then, this happened.

COLIN POWELL, SECRETARY OF STATE: To the extent that governments such as the Taliban government in Afghanistan supports such things, you need to understand you cannot separate your activities from the activities of these perpetrators.

KAST: Afghanistan, where Mercer is on trial, is at the top of the potential target list for U.S. military retaliation, because of Afghanistan's support for Osama Bin Laden, the top suspect in the terrorist attacks.

(on camera): So, on Thursday, U.S. and German diplomats pulled out of Afghanistan, along with United Nations and some Red Cross workers. There is no one from the U.S. there to continue negotiations about Mercer and the other American, Dana Curry (ph).

(voice-over): Even Dana's mother, Deborah Audi (ph), who had just arrived in Afghanistan on Tuesday, was forced to leave. Her head covered, as required, she told reporters it was "devastating to leave after just one visit with her daughter."

UNIDENTIFIED MALE: It sounds like she's in a dangerous situation as it is, and now, with what's happened in the last week, that's heightened.

CYNTHIA RAHAL: Everyone's prayer is that just God brings her through this safely; she's expelled from the country. That's our best hope.

KAST: To be expelled, rather than forgotten, as the United States decides the next step in its new war on terrorism.

Sheilah Kast, for CNN, Washington.

(END VIDEOTAPE)

MCEDWARDS: While President Bush is leaving little doubt about what the attacks mean for the United States, and as Kelly Wallace reports, he now faces the challenge of maintaining public support, as he goes ahead and plans a response.

(END VIDEOTAPE)

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT (voice-over): Spending the weekend at the secluded presidential retreat in the Maryland mountains, President Bush huddled with his national security team, and prepares the American people for war.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're at war. There's been an act of war declared upon America, by terrorists, and we will respond accordingly.

WALLACE: The president refuses to discuss military options, but for the first time, he specifically tamed suspected terrorist, Osama Bin Laden, as a prime suspect behind Tuesday's terrorism spree. Bin Laden is believed to be hiding out in Afghanistan, with the ruling Taliban government providing him safe haven.

BUSH: This act will not stand. We will find those who did it. We will smoke them out of their holes. We will get them running; and we will bring them to justice.

WALLACE: When asked if those words mean President Bush is considering using ground troops to attack terrorists, aids say nothing has been ruled out. But winning this so-called war and finding the illusive bin Laden won't be easy, says a former Clinton administration official.

JIM STEINBERG, FMR. DEP. NATL. SEC. ADVISER: We're not fighting a military; we're not fighting an organized power, but we're fighting a very diffuse and shadowy organization that has links in many different parts of the world.

WALLACE: Knowing Americans are hungry for swift retaliation, the president uses his radio address to say, a sweeping response will come, in time.

BUSH: You will be asked for your patience, for the conflict will not be short. You will be asked for resolve, for the conflict will not be easy. You will be asked for your strength, because the course to victory may be long.

WALLACE: And aids say President Bush has gained strength from his meeting, Friday, with more than 200 family members with loved ones still missing, believing his job is to turn their sorrow into something positive for future generations.

While the American people overwhelmingly support a military response, keeping that support up will be another big challenge for the President, especially if a prolonged military attack means some U.S. troops lose their lives. Kelly Wallace, CNN, near Camp David, Maryland.

(END VIDEOTAPE)

HOLMES: Well, U.S. military leaders are making plans for the mobilization of 55,000 reservists. With more on operation Noble Eagle, let's go to Mark Potter's standing by at the Pentagon, once more. Mark.

MARK POTTER, CNN CORRESPONDENT: Well, good morning. The Pentagon says Operation Noble Eagle is its new name for the mission to provide homeland security and disaster relief. It covers the warships patrolling the East and West Coasts of the United States, the fighter jets patrolling the skies over Washington, DC, and New York, and the hospital ship, the Navy ship, the Comfort, which is providing lodging for rescue and recovery workers in New York City.

Now, the Pentagon is preparing to activate some 35,000 reservists for Operation Noble Eagle, and notice will be sent out to most of them shortly. Hundreds of Coast Guard reservists have already been called up, and among other things, they will be providing increased port security.

We're looking, here, at a live picture of the Pentagon tonight. Now, the Pentagon has released some new video that was shot a few days ago, shot Tuesday, shortly after American Airlines Flight 77 slammed into the building. The pictures were shot by an Air Force tech sergeant, showing the heavy smoke and the wall collapsing on top of the hole created when the 757 jet crashed into a lower floor. Since then, workers have been digging in, trying to shore up the walls, trying to dig deeper into the building.

Now, the Pentagon video shows, also, the heavily damaged area inside the structure. Revealed in the pictures is evidence of the human toll. These clearly were areas where people were working.

Officials say it will take years, and hundreds of millions of dollars to repair the damage, and they say that because the plane hit in a newly-renovated area that had been reinforced, more extensive damage was prevented, and many lives were spared.

(BEGIN VIDEOTAPE)

POTTER: So, you estimated 3500 people were in Wedge One when this happened, or could have been?

LEE EVEY, PENTAGON RESTORATION MGR.: Could have been -- could have been.

POTTER: So, as a percentage, the casualties seem to be reasonably light, although, of course, each one is significant.

EVEY: I think that the fact that they happened to hit an area that we had built so sturdily, was a wonderful gift.

POTTER: In a perverse way.

EVEY: In a perverse way.

(END VIDEOTAPE)

POTTER: Now, it's believed that many employees were protected by steel reinforcements in that renovated area, and also by new, blast-proof glass that had been installed.

Now, earlier in the day, grieving families of some of the victims here at the Pentagon were bussed into the area. They were escorted by Police and attended to by military officials. For many it appeared to be a very emotional visit Those who wished to, were allowed to leave flowers and mementos at the site.

The death toll here has been placed at 188. That's 124 Pentagon personnel -- 124 Pentagon personnel, and 64 people who died on the plane. Remains are still being removed from the site, and they are being taken to the Dover Air Force Base mortuary for identification. Back to you.

HOLMES: All right, Mark Potter, thanks very much.

OK, let's bring you up to date, now, with the latest in the investigation into Tuesday's terrorist attacks. Police have arrested a second person they describe as a material witness, and is thought to have information vital to the case. And this man was detained in New York, his identity not yet being released.

President George W. Bush discussed the U.S. response to the attacks and also global terrorism, with his national security team. Speaking from Camp David, he warned Americans to be prepared for what could be a protracted war. He said, so far, the Saudi dissident, Osama Bin Laden, remains the chief suspect.

Meanwhile, rescue workers are holding out hope of finding more survivors under the rubble, but they have not pulled out anyone alive, since Wednesday. Those hopes must be fading by the hour. Nearly 5,000 people remain missing at the site of the fallen twin towers.

On Saturday, New York paid its last respects to three senior members of the city's fire department. More than 300 firefighters are missing.

MCEDWARDS: While people all over the world are expressing their sympathy and support, thousands of Israelis took part in rallies in Tel Aviv and in Jerusalem. Israeli Foreign Minister Shimon Perez, told the crown in Tel Aviv, that the U.S. leads the struggle for freedom, for security, and for humanity.

Kuwaitis gathered at blood banks to donate blood for the victims of the attacks. Donors say they want to show their gratitude for U.S. involvement in the Gulf War, after the Iraqi invasion in 1990.

And then, in Britain, soccer players observed a minute of silence. They were wearing black arm bands, as you see there, as a sign of mourning.

Well, Russia is moving closer to supporting the United States in its proposed military action against terrorists. However, officials in Moscow are saying that they've been warning against such attacks for some time, now.

CNN's Jill Dougherty has that story.

(BEGIN VIDEOTAPE)

JILL DOUGHERTY, CNN CORRESPONDENT (voice-over): Russia is telling the West, "We tried to tell you, terror in the United States, or terror in Russia, it's all controlled by international terrorist organizations," they say. The Number One criminal suspect in both countries, Osama Bin Laden.

The FSB, successor to the KGB, tells CNN it new where Bin Laden was hiding before the attacks on the U.S., and informed other special services. He since changed his location, the FSB says, but is still in Afghanistan, and the agency vows to find out where he is and inform its Western colleagues.

NIKOLAI PATRUSHEV, RUSSIAN COUNTERINTELLIGENCE: Russia has never tried to kill Osama Bin Laden. We usually deal with infiltrating criminals, arresting them, and turning them over to the courts to be punished. That's what I think should be done. However, we have experience where, when a suspect was to gives armed resistance, in order to avoid casualties, it is possible to kill him.

DOUGHERTY: President Vladimir Putin says he's been warning the West since he took office, that there is a worldwide network of fanatical terrorist, funded primarily by drug money. They're fighting in Chechnya, he claims, and are responsible for a wave of apartment house bombings that hit Russia two years ago. But the West, Moscow says, spent too much time scolding Russia for how it dealt with the threat.

PATRUSHEV: I think, now they understand that it is not just our internal issue; it's a problem for the entire international community.

DOUGHERTY: Evil must be punished, says the Russian President.

PRES. VLADIMIR PUTIN, RUSSIA: But we should not become like bandits that acting behind a corner. We should consider our decisions, and proceed from true facts.

DOUGHERTY: The attacks in the United States, he says, could be compared in scale and cruelty, to what the Nazi's were perpetrating. "I feel guilty for what has happened," Vladimir Putin says. "We spoke so much about this threat, but apparently not enough." Jill Dougherty, CNN, Moscow.

(END VIDEOTAPE)

HOLMES: The terrorist attack on the United States is already having a huge impact on the world's economy, as you might imagine. Well, Richard Quest joining us, now, from London, with a look at what might be in store for global business; Richard, obviously, major effects. What can you tell us? What's ahead?

RICHARD QUEST, CNN CORRESPONDENT: Indeed, into this grim malaise, let me put in a little bit of cheer, if that's what it is. On Monday, a degree of normality will return to the financial world, when the New York Stock Exchange and the New York markets are expected to open. Others, like the NASDAQ, will schedule opened at 9:30 on Monday morning. That's four days after trading was stopped.

Stock exchange workers have tested equipment and communication lines. That took place on Saturday. Officials say Monday's trading day will begin with two minutes of silence, followed by the singing of God Bless America. Members of the New York City Police and the Fire Department and other emergency services, they will ceremonially ring the opening bell.

There is not doubt that the terrorist attack is already having a huge effect on the world economy.

Joining me to discuss exactly what the effect might be, is Howard Davis, Britain's chief regulator of the financial industry. And, Howard, when -- when the markets do reopen on Monday, the New York markets, that is -- it is more than just the beginning of a trading day; it's sending a message, which is an important one.

HOWARD DAVIS, FINANCIAL SERVICES AUTHORITY: Yes, I think it's a very important message that things are getting back to normal. And also, one has to say that although the London markets and European markets have worked well during the last week, there's been a great sense that the world financial system had been operating without its sense of functioning. And, therefore, it's been a slightly unusual kind of week, and everybody has felt that we are really waiting for New York to reopen, before we can begin to see what the impact of this disaster is.

QUEST: The experts tell us that it will be down on the open, on Monday, but the truth is, whatever we see in the first five minutes, it's more the medium-term, the confidence-building, that the markets are back open, that's the important signal.

DAVIS: Yes, I think that's right. I mean, there are two aspects of this. One, is functionality, if you like. Will the markets operate in an orderly way? And, the American authorities, and we've been talking to them very closely during the week; I'm sure they will have that organized. Then, of course, there's the question of what direction the markets will take, which is very, very difficult to forecast.

Over here, people thought they would be down. In fact, they were up, until right near the end of the week. My own view is that the underlying economic situation has not been changed. The issue is the impact on confidence, and that is something we won't know about for another week or two.

QUEST: That issue of confidence in the general economy, we know that the consumer and the ability of the consumer to keep spending, is what is crucial. Clearly, too many people -- not too many people will feel like going out spending, at the moment.

I'm avoiding using the "R" word, however, let me put it. Are we more likely to see a recession in the U.S., now?

DAVIS: Well, the consensus forecast remains for a continued slowdown, during the course of this year. And, I imagine people are now reworking all their figures to say just how slow will that slowdown be? But at the moment, it's only hunch, if you think that there will be a big impact on confidence. I think it's far too early to say.

QUEST: And finally, what should we look for when trading stocks, in terms of the stresses and the strains in the system. We know the phones and the lines and all that, have been tested. But, so many brokerages are dislocated, so many different investment houses are basically working with two tin cans and a piece of string?

DAVIS: Well, the disaster recovery arrangements have been pretty good. We have seen that during the course of this week, because, of course, there have been settlements going on in the U.S., of European trades.

QUEST: Any problem that you know of?

DAVIS: No, and in fact, what's been really encouraging, over the last week, is the willingness of firms to help each other, and to ensure that the system operates. There has been a real cooperative and collaborative spirit abroad. I guess it won't last; markets are not like that. But, for the moment, that's what we've seen, and it's been very encouraging.

QUEST: Howard Davis, of Britain's financial services, I've already -- many thanks, indeed, for joining us now. The devastating attack on Wall Street is already having an effect on some U.S. Corporations. For instance, the Ford Motor Company has announced it will cut back on the output of cars, because of production difficulties, mainly relating to just-in-time production, while restaurants and retailers are warning that they'll be hit because of the reluctance by consumers to go out and spend, at this difficult time.

One industry already feeling the effect, is the aviation industry. The attacks are taking a heavy toll on a business that was already in some trouble. The nation's largest carriers have announced that they are cutting jobs and scaling back on their route networks. It's all part of their efforts to cut costs, which some say could be mounting at the rate of $300 million a day.

CNN's Bruce Francis has more.

(BEGIN VIDEOTAPE)

BRUCE FRANCIS, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): Continental Airlines says it is furloughing 12,000 employees, more than a fifth of its work force, as it cuts 20 percent of its schedule.

GORDON BETHUNE, CHMN., CONTINENTAL: Continental's just getting -- we're not going to be bankrupt first -- I'll tell you that -- but we're going to be first to move to prevent it. And I think that's a prudent thing to do.

FRANCIS: Northwest is also cutting its schedule by 20 percent, although it hasn't announced any job reductions. Most airlines are flying reduced schedules right now, but at a heavy loss. The airline industry has been losing as much as $275 million a day, since Tuesday's terrorist attacks. And even with most airports now open, the outlook is bleak, with passengers reluctant to fly.

Airlines face further constraints, as pilots are called up from military reserve, at the same time the carriers are paying for increased security measures. That's why Bethune and others are calling for a government bailout.

BETHUNE: By now, and we, all of us, call on the President of the United States and members of our Congress, to take immediate action to restore the stability of this vital industry.

FRANCIS: A first attempt in Congress to provide $15 billion in assistance, has failed. If the money is eventually approved, it may come too late for some airlines. Midway has already folded, and seven of the top ten U.S. airlines lost money in the second quarter. Prior to the attacks, the industry was on a course to lose $2 billion this. Analysts now say that could soar to $10 billion.

MICHAEL MILLER, AVIATION DAILY: The financial situation is such that I really expect three to four small carriers to file for bankruptcy in the coming weeks, and for the major airlines actually to lay off people, so it's a downward spiral.

FRANCIS: Airlines chiefs will get their chance to voice their concerns directly to the Bush administration. Next week, they're going to sit down with Transportation Secretary, Norman Mineta. Potentially on the agenda: beefing up security without scaring away an already nervous public. Bruce Francis, CNN Financial News, New York.

(END VIDEOTAPE)

QUEST: So, clearly, some industries, the airline and many production industries, feeling the effects already, in the wider economy. But, Colleen, perhaps the best bit of cheer we can offer is the confidence we'll see the New York markets trading starts, 9:30 eastern time, in New York. Colleen.

MCEDWARDS: I think people will be watching very closely, Richard Quest. Thanks very much, now.

You've heard Bruce Francis mention in his report, that the airline industry is facing some tough new safety requirements. Federal officials in the United States say they are also considering some other measures. CNN's Jeanne Meserve, have talked to a couple of pilots about the safety issue.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): For pilots, the rule of thumb in hijackings has always been "Be passive; be cooperative. Get on the ground and into negotiations." Tuesday, the rules changed, instantaneously. Commercial pilot Paul Emens was in the air.

PAUL EMENS, PILOT: And my copilot and I basically looked at each other, and say, "You want to fly or fight?" And he was -- had his big steel flashlight, and if anybody came through the door, he was going to go after him, and I was going to get the airplane on the ground.

MESERVE: According to the Airline Pilot's Association, pilots and flight attendants, the airlines, the FAA, and law enforcement, are engaged in an unprecedented cooperative effort to improve aircraft security quickly.

DUANE WOERTH, AIRLINE PILOTS ASSOCIATION: We are at war, and we're taking it, treating it that way. And everybody's cutting through the red tape, making decisions.

MESERVE: Among the changes being considered on an expedited basis, whether to provide law enforcement escorts; whether to arm pilots with weapons, and how to modify equipment, like the cockpit door, so it is a more effective barrier.

WOERTH: This new door that we want for -- well, I hope, by Friday -- really, by Friday, I want a certification process approved by the FAA and manufacturer, and ALPA and I believe we can have that, and are on our way to getting that door.

MESERVE: Some airlines have told their pilots to do what they must, to save themselves, their aircraft, and their passengers. Pilot, Paul Emens, says that if his plane are under threat, passengers better hold on.

EMENS: You should be wearing your seatbelt.

MESERVE: What does that mean?

EMENS: We can start to maneuver that aircraft so that he cannot function.

MESERVE: Depressurize?

EMENS: Or we can depressurize the aircraft. We can throw it around the sky we can do all sorts of things, and he won't be walking when it's over.

MESERVE: Despite the financial distress of the airline industry, the Airline Pilots' Association says no security measure is off the table, no matter what the expense. But, some aviation watchdogs are critical. They say the problems and the solutions were known long ago, and they ask, "Why are we seeing corrections so late? Too late?"

Jeanne Meserve, of CNN, Washington.

(END VIDEOTAPE)

MCEDWARDS: I want to update you now on the latest developments: rescuers in New York still digging through the rubble of what was the World Trade Center, for the fifth straight night, now. They're holding out hope that there could be people still buried alive underneath that rubble, but no survivors have been found there since Wednesday.

Mourners gathered on Saturday to bury three top Fire Department officers who were killed in the aftermath of the attack. They were among the first group of rescue crews who rushed to that scene. About 300 firefighters still unaccounted for.

And police have arrested a second material witness. He's one of 25 people in police custody for possible immigration violations. The other person charged in connection with the investigation was detained at New York's John F. Kennedy International Airport, Thursday, for allegedly holding a false pilot's license -- Michael.

HOLMES: Thanks, Colleen. Well, part of the healing process that New Yorkers, and indeed, people everywhere must now endure, is the void in one of the world's most recognizable skylines. Now, we've produced this video to show you what the skyline looked like then -- take a look at it, of course, familiar to everyone -- and then, what it looked like after Tuesday's events.

I remember first coming to New York in 1980, as a backpacking young man, and climbing to the top of those buildings, and seeing the view from the top. Of course, the World Trade Center is one of the landmarks in one of the cities of the world -- let's have another look of this -- of course, no more, after the events of Tuesday. That famous skyline in photo albums around the world, on postcards, in movies -- no more, never be the same. Very powerful picture. Very powerful comparison. If a picture is worth a thousand words, that one certainly is.

OK, joining us once again from New York, is Gary Tuchman, someone very familiar with the city, who's been there, virtually, since this happened. Gary. Those pictures, incredible, what can you tell us?

TUCHMAN: Well, Michael, you were just taking about the postcards, and that's an interesting thing, because that is one of the more popular New York postcards. The World Trade Center, also the Statue of Liberty, Empire State Building postcards are very popular, too. But right now, you go through New York City, you really can't find the World Trade Center postcards any more, because everybody's buying them as keepsakes. Obviously, they're not going to make World Trade Center postcards any more.

One of the sad parts of the story is that it's erased from New York City. You could see the World Trade Center 40 miles away on a clear day and now, that's not here. And that's what you have instead, this fiery, smoky cauldron behind me, where up to 5,000 bodies may be buried.

You know, there are thousands of emergency workers from all over the United States participating in this rescue and recovery mission, and never before have any of them dealt with anything of this magnitude. The work is physically very difficult. It's psychologically very difficult, but New Yorkers are really expressing their appreciation.

We've seen an extraordinary sight, over the past couple of days, of hundreds of New Yorkers gathering just outside of the danger zone, to thank the emergency workers who have come here. They are clapping. They are holding signs that say, "Thank you."

The intersection you're looking at right now, is Canal Street and West Street. West Street runs along the Hudson River. Canal Street is the zone where the public has to be behind right now, and what they're doing is they're blowing whistles, and they're letting people know that they're appreciated. The emergency workers come by. Some of them wave back. I saw a couple of them with tears in their eyes. They didn't wave; they were just looking, and just could not believe that they were getting such an ovation. That's certainly not something they're used to.

New Yorkers, in many cases, are very worried. They're scared; they're concerned about what's happened, but they've been giving a lot of patriotism through this situation. They've been infused with the sense that this is very important to show their patriotic spirit. We see flags all over New York City. We see posters going up. We see people painting murals on sides of buildings, with the American flag, and also offering thanks to the emergency workers who are here.

One more thing I want to mention, people are also making food for the emergency workers. One of the firefighters gave us this to show you. It's three M&M cookies with a little note. It says, "Thank you for working so hard for others. Hope you enjoy the cookies," from Michelle in Yorktown. Well, Michelle in Yorktown, the firemen say you make good cookies.

Back to you, Michael.

HOLMES: I'm sure they do, and I bet they're welcome. Gary Tuchman, thanks, as always. We'll be checking in with you, later, no doubt. Colleen.

MCEDWARDS: I'm sure they do, and there's the little acts of kindness in that area, inside the Armory -- pictures I'm sure you're familiar with by now -- where families are gathering with pictures of their lost loved ones, trying to find out if they're in a hospital, if they're alive, if they've been accounted for. So many of them have more worries than certainties. And as CNN's Candy Crowley found out, it's the pain and the hope -- both of them come from not knowing.

(BEGIN VIDEOTAPE)

DAVID VINCENT: Yes, Dan? Yes, this is David Vincent.

CANDY CROWLEY, CNN CORRESPONDENT (voice-over): He's an Eastman Kodak Executive from Webster, New York, a man with a problem to solve, a man on a mission.

VINCENT: How is being set up, so that I can make the best use of my time, because you're working a timeline, here. You have to get your daughter as fast as you can.

CROWLEY: Melissa is missing. She's a technology recruiter at Alliance Consulting.

VINCENT: But we know that there's -- that's 102nd floor of Tower One.

CROWLEY: The enormity of what's happened in David Vincent's life shows on his face, but does not slow his step.

VINCENT: Please focus on the picture, to get her face out there, so that any...

CROWLEY: Working on three hours sleep and a couple of crackers, he protects his fondest hopes, battles his worst fears, and sometimes loses.

VINCENT: I don't have an video of her. To be honest with you, Melissa didn't like to be videoed. She used to holler at me every time I did it. I'd give anything to have her holler at me, now.

CROWLEY: "I'd give anything, he says, to have her holler at me right now." It's a rare lapse. Mostly, there is a desperate monotony to his mission.

VINCENT: I know she made a 911 call at 9:02:07...

CROWLEY: It's all that David knows about what's happened to his eldest daughter. It's enough to hang hope on.

VINCENT: When we went back to the cell phone provider, the only thing that we had that they could tell us, is that there was a 911 call made from that cell phone at 9:02, which was some 17 minutes after the jet had piled into the thing, so...

CROWLEY: 9:02:07, he tells it to everyone he talks to. He clings to it for dear life, because, of course, it is.

VINCENT: I need to know where she was when she made that call, because that will tell me whether she was downstairs just getting off the path, and may be in a void someplace downstairs, or whether I have to understand that she was upstairs on 102, and have to wonder whether she was able to get out, or not able to get out.

CROWLEY: By evening, David Vincent has pretty much worn out the corner of 26th and Lexington, and his cell battery is fading, so he moves on.

Craig Spitzer is CEO of Alliance. Seven employees everyone thought to be in the building that morning are missing. He cannot, will not, bring himself to believe they're gone.

CRAIG SPITZER, ALLIANCE CEO: I'm not going to say that to you right now.

CROWLEY: You can't?

SPITZER: No, and I won't. And I won't, for myself, and I won't, for the people in there.

CROWLEY: In there is a room full of people who have loved someone too long to give up so soon. And what's left after hope, is unthinkable. It is why they agreed to expose this rawest of human times to the glare of the camera lens, because, maybe somebody out there has information about Roland, something that will keep his brother moving.

UNIDENTIFIED MALE: I go to sleep with hope, I wake up with none.

CROWLEY: And perhaps somebody saw Eric in a stairwell, racing to safety.

UNIDENTIFIED FEMALE: Maybe he's out there someplace, and hit on the head, and he doesn't know who he is. You know, maybe he's unconscious and he doesn't have identification on him.

CROWLEY: And as it turns out, nobody can say for sure that Melissa was in the office for that 8:30 meeting.

VINCENT: I have to tell you, Craig, that's the best news that I could possibly hear, because what you're telling me is, you can't confirm Melissa in that office space, and that's what I had to know. That's what keeps me going.

CROWLEY: So, if you know anything about Melissa, call her father. He'd give anything to hear her holler at him again. Candy Crowley, CNN, New York.

(END VIDEOTAPE)

HOLMES: New York's Fire Department buried some of its own on Saturday. Fire Chief Peter Ganci; Deputy Commissioner, William Feehan, the Department's Chaplain, Friar Father, Michael Judge. Their loss has left some of their friends asking, "Why them? Why not me?" Richard Blystone has that story.

(BEGIN VIDEOTAPE)

RICHARD BLYSTONE, CNN CORRESPONDENT (voice-over): Surgery is going to keep news photographer, David Handschuh (ph), away from some friend's funerals. But this one, he wasn't going to miss. Because, in the line of duty, he saw a lot of Father Mike Judge, the firefighter's chaplain, who was killed Tuesday, while giving last rites to a fireman.

DAVID HANDSCHUH: He -- he would hold your hand, and you would just feel good. He -- he emanated some form of, just positive goodwill, that nobody else I've ever met could, by just touching you, by putting his hand on you and giving you a hug, you just floated away happy.

BLYSTONE: Many of those in the overflow crowd had narrow escapes that day. David Handschuh had two.

HANDSCHUH: You heard the sound, and then the building starts falling down in slow motion. And, I'm a photographer, and the initial reaction was to raise the camera and take a picture, but something up here said, "Just run." And in the 20-plus years I've been doing this, I never once run from a -- I never once run from anything. It probably saved my life. The wall of debris that came flying down, just picked me up and threw me a block.

BLYSTONE: One leg shattered, the other torn up. Firemen pulled him to a delicatessen. Another photographer captured that moment, but it wasn't over.

HANDSCHUH: When the second building collapsed, the facade of that building -- we were trapped once again. Using their hands and tools and sheer strength and will, they pushed their way out.

BLYSTONE: For news photographers, cameramen, reporters, days like that are part of an unwritten contract with life. So, too, with soldiers, policemen, firemen -- which doesn't make it much easier.

But the thousands still missing downtown, they didn't sign up for this.

HANDSCHUH: I'm so sorry that so many people lost their lives over this. It's not comprehendible. It's not right.

BLYSTONE: At the end, the photographer pulled out his camera. It may not make much of a picture, but this one's personal. Richard Blystone, CNN, New York.

(END VIDEOTAPE)

MCEDWARDS: You know, the people waiting downtown, today. Some of those people still searching for their relatives. We talked a little bit about the small acts of kindness that are out there. A gospel choir -- a group of gospel singers, actually came out and sang for them, as they stood there and waited to register the names and descriptions of their loved ones, to try to lift their spirits a little bit.

HOLMES: Spontaneous stuff. You know, we want to -- in so many images around in the last few days, let's leave you now, briefly, with some images of yet another day of sadness, of hope, and of inspiration, in New York City.

MCEDWARDS: And we'll be back.

HOLMES: Search, rescue and recovery workers in New York City battle a horrible stench and more flash fires in the debris. And their hope begins to fade of finding anyone else alive.

(BEGIN VIDEO CLIP)

BUSH: We're at war. There's been an act of war declared upon America by terrorists.

(END VIDEO CLIP)

McEDWARDS: More strong words from U.S. President George W. Bush, mixing compassion with resolve, as we see the first pictures from inside the Pentagon.

HOLMES: And America begins to bury its dead. And it is just the beginning, I'm Michael Holmes.

McEDWARDS: That's right. And I'm Colleen McEdwards at CNN Center. This is CNN's continuing coverage of America's New War. And we want to get you right to some late developments in the investigation.

The FBI has arrested a second man in connection with the attacks on the World Trade Center. He was arrested as a material witness in Jersey City, New Jersey, late Saturday. Now police say there that the man was taken into custody at an apartment. We don't know his name, age or nationality at this point.

Also, Justice Department sources say one of the hijackers was connected to last October's attack on the U.S.S. Cole.

HOLMES: And U.S. officials say that even before Tuesday's attacks the FBI was searching for two of the hijackers because of their connection with suspected terror mastermind Osama bin Laden.

Now, Eileen O'Connor reports there is also some evidence emerging of links between the hijackers and the attack last year on the warship the U.S.S. Cole.

(BEGIN VIDEOTAPE)

EILEEN O'CONNOR, CNN CORRESPONDENT (voice-over): They booked the tickets on American Airlines Flight 77, from Washington to Los Angeles, on Travelocity, using a New Jersey address -- a Mail Boxes Et Cetera -- and names U.S. officials confirm were known to them. Khalid Al-Midhar and Saleem Alhamzi. Once on board, together with Alhamzi's brother and an old roommate, a known pilot, they took over the flight, crashing it into the Pentagon.

Within minutes, the facade of a symbol of American strength crumbled. As the search and rescue effort continued, sources say the FBI was informed that Khalid Al-Midhar and Saleem Al-Hamzi were associated with Osama Bin Laden and the bombing of the U.S.S. Cole. Once source confirms Al-Midhar was seen on surveillance tape in Malaysia, meeting with the suspect in that bombing.

LEBARON COKER: One was kind of short, and the other two was tall...

O'CONNOR: Al-Midhar was a frequent visitor of Alhamzi and his brother, Nawaq, in the San Diego Apartment complex.

COKER: They was always together. They left, it was together; they come back, they was together.

O'CONNOR: They hung out a lot at the pool, despite telling their neighbors they were studying at a nearby college.

FREDDIE EVANS: You'd see three of them in the pool swimming, or you'd see the dude always looking out the window, another one outside the door on the phone.

O'CONNOR: At one point they left, telling one landlord they were in Arizona, living in different cities at different addresses, as it turns out, rooming with another hijacker aboard that plane, Hani Hanjour. Hani attended this flying school, CRM, Cockpit Resource Management, but left without a certification.

PAUL BLAIR, CRM: He was kind of a waste of time; he wouldn't show up for flights on time, didn't do his homework.

O'CONNOR: Not a promising student, but skilled enough to carry out the mission. Eileen O'Connor, CNN, Washington.

(END VIDEOTAPE)

HOLMES: Well, the Justice Department has released more information about the alleged hijackers and the terrorist network thought to have sponsored Tuesday's attacks. CNN has obtained photos of eight of those suspected hijackers. Let's show them to you now.

From American Airlines' flight 11, which target the World Trade Center's North Tower, there's Mohamed Atta, Waleed Alshehri, Abdulaziz Alamari and Walid M Alshehri.

From United Airlines' flight 175 -- now that's the one that targeted the World Trade Center's South Tower -- Marwan al-Shehhi. And, from United Airlines' flight 93 -- that's the one that crashed in rural Pennsylvania -- the photos before you are Sahid Al-Gamdi (ph), Ahmed Al-Haznali (ph) and Ziad Samir Jarrah.

McEDWARDS: Well U.S. President Bush says the nation needs to temper its anger with patience. He says the battle against terrorism will not be brief nor will it be painless.

Well Mr. Bush spent much of his day with his national security team at the Camp David Presidential Retreat. And Major Garrett is at the White House and joins us now with more. Major, any sense at this point about what they talked about through the day?

MAJOR GARRETT, CNN WHITE HOUSE CORRESPONDENT: Well they talked about an entire range of issues, Colleen. Among the people in the meeting with the president at Camp David: his top national security advisers; the CIA director; his Secretary of State, Colin Powell; his National Security Adviser, Condoleezza Rice. Also, the Attorney General, John Ashcroft, bringing the president the latest information about the investigation into the terrorist attack on Tuesday.

In talking to reporters at the top of this meeting, the president -- for the first time -- identified Osama bin Laden as the prime U.S. suspect behind the terrorist attack on Tuesday. Though he hastened to add that Osama bin Laden is not the only suspect the United States government is looking at.

The White House also, later, did not rule out the use of ground troops and any military response to the terrorist attacks. Thirdly, the president spoke on the phone for about 10 minutes with Pakistani President and military leader, Pervez Musharraf. White House says thanking him to -- rather, thanking President Musharraf for the agreement and cooperation Pakistan has provided the United States. He, Secretary of State Powell says among the broadening coalition of nations willing to join the United States in a military response to the terrorist acts.

The president also told reporters -- when he was asked -- if he would discuss any of the details of the decision-making process at that meeting. And he would not, in any way, disclose any of the decision-making process, but he made it clear to the American public the gravity of the situation.

(BEGIN VIDEO CLIP)

BUSH: We're at war. There's been an act of war declared upon America by terrorists and we will respond accordingly. And I appreciate very much the American people understanding that. As we plan, as we put our strategy into action, we will let you know when we think it's appropriate not only for -- to protect the lives of our service men and women, but to make sure our coalition has had proper time to be noticed as well. But we're going to act.

(END VIDEO CLIP)

GARRETT: Keying on the fact that the president outlined the members of the coalition, which the United States says is broadening, will be given proper notice. The Arab League, on Saturday, also said that it would agree to support the United States and whatever military action it takes, provided it receives advanced notice ahead of time.

Also, Secretary of State Colin Powell -- at that very same meeting at Camp David -- told reporters, "We are receiving ..." and I quote here, "expressions of support from around the world; and not just rhetorical support, but real support for whatever may lie ahead in this campaign that is ahead of us to win the war." And the president also told reporters that the United States would seek high and low everywhere across the world to find the suspected terrorists.

(BEGIN VIDEO CLIP)

BUSH: They will try to hide; they will try to avoid the United States and our allies, but we're not going to let them. They run to the hills; they find holes to get in. And we will do whatever it takes to smoke them out and get them running, and we'll get them. And -- listen, this is a great nation. We're a kind people. None of us could have envisioned the barbaric acts of these terrorists. But they have stirred up the might of the American people and we're going to get them for however long it takes.

(END VIDEO CLIP)

GARRETT: Colleen, if I could, I'd like to take you back to the terrifying and earliest moments of this catastrophe. Tuesday morning the President was in Sarasota, Florida. We were traveling with him. The day was to have began in a quite ordinary way. The President was going to talk education reform to a group of students at Emma E. Booker Elementary School. He was preparing to do just that. You could see his Chief of Staff, Andrew Card, telling him something. You see the president's expression change dramatically.

We have only just recently learned what Mr. Card told the president in that hushed conversation. Mr. Card said to the president -- and you should understand that the president, by this time, already knew that one jet airliner had already crashed into the first tower of the World Trade Center -- but Mr. Card leaned over and said, "A second plane hit the other tower and America's under attack."

Asked to describe it later, Andrew Card said, "It was a surreal moment, doubtless, indeed." -- Colleen.

McEDWARDS: Major Garrett, thanks very much.

Well, U.S. officials planning tactics for what it is calling a new war, as Major has told us. Also, the Pentagon is preparing to call up more than 35,000 reservists to protect U.S. territory and to help in the recovery effort in New York and at the Pentagon as well.

Well this operation has been dubbed, "Noble Eagle." And Mark Potter joins us now live from the Pentagon with details on this. Mark, what can you tell us?

POTTER: Well good morning, Colleen. I can tell you that Noble Eagle is the Pentagon's new name for the mission to provide homeland defense and disaster relief. It does not cover any military attack on terrorism that may come in the future. And, by the way, no indications here at the Pentagon that such an attack is imminent.

Now examples of Operation Noble Eagle include: the warships that are patrolling along the East and West Coasts of the United States; of the combat air patrols over Washington DC and New York City; increased security at the ports, the sea ports around the country; and the use of the Navy hospital ship, to comfort, to provide lodging for rescue and recovery workers in New York City.

The Pentagon plans to activate some 35,000 reservists for Operation Noble Eagle, and most of them should be getting their notices in a few days. Some Coast Guard reservists -- hundreds, actually -- have already been notified.

Now this morning the Pentagon -- the workers at the Pentagon, I'm sorry -- are still going through the rubble, sifting through the rubble, trying to find victims. At last report, 85 remains have been pulled from the site. You're seeing a live picture as it can be seen this morning. At this hour, under the foot lights, the workers are still there. Eighty-five remains have been recovered; they're being taken to the Dover Air Base in Delaware for identification. Now the Arlington County Fire Chief says that recovery efforts could taken 10 days or more.

Pentagon officials say the repair of the building itself could take years and could cost hundreds of millions of dollars. The area hit by the plane had just been reinforced and officials say that that may actually have been fortuitous. It was fortuitous in that many lives may have been saved because of the reinforced steel and the bomb-proof windows and the strong walls that were there in that area.

And they say that because of that, many people were protected and were able to flee the building to safety before that area hit by the plane had a lower floor collapsed in on itself.

Back to you.

McEDWARDS: All right. Mark Potter, thanks very much for that update.

Michael, over to you.

HOLMES: OK, Colleen. Thanks very much.

Well to many experts, the United States and its allies would face a formidable task, should they opt for a sustained military campaign in Afghanistan. (UNINTELLIGIBLE), at the moment, it is a possibility. Let's have a look at the map briefly. This is the area they refer to as the arc of crisis. Others call it simply a rough neighborhood.

Looking at the map there, you can see just how crucial Pakistan is in reaching Afghanistan. And, so far, the Bush administration is happy with the cooperation being promised by Pakistan and Islamabad. Let's listen in.

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: And I especially want to thank the president and the people of Pakistan for the support they have offered and their willingness to assist us in whatever might be required in that part of the world as we determine who these perpetrators are.

It's a coalition that will stay in tact, that will be built upon over time. And what we have to do is not just go after these perpetrators and those who gave them haven, but the whole curse of terrorism that is upon the face of the earth. And this is a campaign that we have begun this week and we will stick with it until we are successful.

(END VIDEO CLIP)

HOLMES: So how comfortable is Pakistan to be enlisted as an ally of the United States, in what President Bush describes as, "the first war of the 21st century?"

Well, let's go across to Islamabad. Our Tom Mintier is standing there to bring us up to date. Tom, what can you tell us?

TOM MINTIER, CNN CORRESPONDENT: Michael, that map you were talking about, the rough neighborhood, we're in one of the houses of that rough neighborhood, Pakistan. President Bush did call President Musharraf, as Major Garrett was talking about earlier, and spent about 10 minutes on the phone.

President Musharraf has really gone out on a limb here in Pakistan, by providing and pledging support to the United States. Yesterday, he held a cabinet meeting and a meeting of his national security council. That meeting lasted four hours. But just how much dissent or discussion inside, we don't know. We were asked to leave shortly after the pictures were made inside. They opened with a minute of silent prayer for those who were killed in the terrorist attacks on the United States, then they got down to business, discussing the level of cooperation between Pakistan and the United States.

When it was all over, Pakistan's foreign minister talked about the United Nations passing a resolution condemning terrorism and going after the perpetrators of the crime. Also, the foreign minister talked about being a charter member of the U.N. They have to uphold the resolutions of the United Nations. He spoke very little about the exact extent of the cooperation between the United States and Pakistan.

What we do know is that the United States had a rather lengthy wish list, including: closing off the border with Afghanistan; reducing the amount of fuel down to zero that was sold to the Taliban; they wanted the intelligence -- the human intelligence -- that's gathered by the Pakistani intelligence services to be provided in assisting a potential strike. These are all things that apparently are on the table and under discussion and possibly have been promised by the Musharraf government.

What's going on today inside the president's office are meetings to sure up support for the decision that's apparently already been made by the government. Public leaders, editorial writers, journalists and even religious leaders, will be called to the president's office throughout the day for meetings, where he will be basically building a consensus domestically, trying to take the Pakistani public into his confidence that this was the right decision to make.

There are a lot of people who may disagree with what the president has decided to do in siding with the United States and providing logistical support, intelligence support, moral support, if you will. But this is a decision that has been made by the leadership here, and it's one that is now today being sold to the population of Pakistan -- Michael.

HOLMES: Tom, Tom as you well know, there are many fundamentalist factions within Pakistan. Might General Musharraf be putting his very leadership at risk? Or, at the same time, do you think perhaps he might get a quid pro quo from the United States? We know that Pakistan's still facing sanctions. Two questions there, but they're kind of linked.

MINTIER: Well let me take the second one first. There is probably a good possibility that the United States has to offer something, maybe a partial lifting of the sanctions to garner the cooperation of the Pakistani government and military. The first one is: yes, there are a lot of religious fundamentalists who may not agree with this policy.

And part of that consensus building that's going on right now -- that president meeting with the religious leaders later today -- will be an effort to thwart any uprising or trouble in the streets. If there is a military strike against Afghanistan, places like Islamabad could become a very noisy area in the streets if people disagree with policy for well-founded reasons in their minds, they could really create some domestic upheaval here.

I don't think it's enough to really challenge the president's position or his government. You have to remember, this is not a democratically elected government. The elections are far off in the future here. And they control all of the security apparatus and the military.

Yesterday, when I met with the president, he was in his uniform. So don't be alluded to think that, you know, you're in the standard political system with the opposition. The opposition in Pakistan is a lot different than any other country around the world.

HOLMES: Indeed, Tom. Thanks very much. Tom Mintier in Islamabad with perspective from Pakistan.

Well military experts expect the United States to use a range of options, as we've been discussing, in devising its strategy. Most expect the use of force -- when it comes, if it comes -- to be massive.

(BEGIN VIDEO CLIP)

GEN. MARTIN BRANDTNER: You have air power which is very capable. It's going to be mixed with a variety of other kinds of actions. And I cross the spectrum of economic sanctions, embargoes, forming alliances that will act in concert against these countries, and as well as military action. So it's going to be long-range; it's going to be very, very complicated. I think you'll find that the military activities that occur are going to be selective. They'll be very aggressive. And probably, in some cases, massive.

But I think that you're going to find that it's going to be a longer term, very carefully orchestrated effort on a magnitude that we have not seen before.

(END VIDEO CLIP)

HOLMES: In the country where prime suspect Osama bin Laden has been offered sanctuary, thousands of Afghanis are not waiting for U.S. retaliatory strikes, may they come. Many are already crowding the border with Pakistan in a desperate attempt to flee the country. Western nationals also leaving Afghanistan after the ruling Taliban says it could not guarantee their safety if the U.S. attacks.

Now, a short while ago, our Nic Robertson gave us this update from Kabul by a video phone.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN CORRESPONDENT (on camera): Well the latest information we have is that the Iranian government has ordered its border with Afghanistan sealed in the case of the aftermath of an American attack on Afghanistan that refugees try and flood across the border. Iran says it has too many Afghan refugees already and can't take anymore.

Now this comes hard on the heels of the Pakistani government, giving the go ahead to United States support. That has implications in Afghanistan as well, because it could mean the border with Pakistan and Afghanistan is sealed. That would mean -- in the capital here, Kabul, and other cities around the country -- shortages of food.

Most food coming to Afghanistan comes from Pakistan and Iran. So the outlook for the people here in Kabul and the other cities is fairly bleak. Already we know that there's been a little panic buying. People trying to buy up supplies in case of attack. Food prices have gone up 10 to 15 percent. And those with a little bit more money have been trying to get out of the city to see relatives in the country. Or if they can, flee across those borders. Particularly, to Pakistan, before the borders close.

The Taliban, today, did try to put pressure on Pakistan not to sign up to help America. They threatened that if any neighbor -- particularly an Islamic one -- was to help America by giving its soil or airspace to America, then they would consider them an enemy as well in case of attack and then they might invade that country as well. So that a clear -- a clear statement, a clear threat towards Pakistan.

A council of elders today also told the Taliban, here in Afghanistan, that they shouldn't close the door to diplomacy. But they did say -- and they made it very clear -- that if Afghanistan was attacked, then the council of elders which represent many of the tribes here in Afghanistan would throw their complete support behind the Taliban.

Nic Robertson, CNN, Kabul, Afghanistan.

(END VIDEOTAPE)

HOLMES: Let's have a look now at India. And India's ambassador to the United States says numerous Indian nationals were lost in the New York City attacks. He said his government is "fully behind the U.S. fight against terrorism."

OK, well India's External Affairs Minister, Jaswant Singh, joins us now live from New Delhi for more on India's position.

Minister, we've got limited time. Thanks very much for joining us. Your government has said that it supports the United States in this effort. Specifically, what do you mean? Will you allow U.S. troops on Indian soil, for example?

JASWANT SINGH, EXTERNAL AFFAIRS MINISTER, INDIA: Well what you are asking is to define exactly what kind of support would be needed and what kind of support will then be provided. India's fight against terrorism is many decades old. And we have pronounced about terrorism. We have (UNINTELLIGIBLE) the United Nations for their (UNINTELLIGIBLE) and convention against terrorism.

And we have made it very clear to the U.S. government that we stand solidly with the United States and the international community in its fight against terrorism.

HOLMES: But, sir -- can I ask you, Minister, what specifically you are offering the United States? Are you offering airspace rights? Are you offering to allow U.S. troops on Indian soil?

SINGH: That is for the United States and the concept of democracy -- and as this situation develops -- to ask of India. We have not yet been asked yet for any specific. And besides, for me to start defining would also be a violation of the intelligence requirements of the situation.

HOLMES: The left in India has said that it does not support the U.S. staging attacks from Indian soil. How do you deal with that politically?

SINGH: How do I -- I couldn't hear, who has said that?

HOLMES: The left parties. Parties on the left in India have said they do not support ...

(CROSSTALK)

SINGH: Yes, I understand now. But we had, you know, a full meeting with all the parties of the opposition, and they have all come out entirely in support of the government's stand and its fight against terrorism. What the left parties have said is what they have been holding to for quite a length of time.

HOLMES: Are you concerned about what will be the necessary relationship with Pakistan as this unfolds? Are you concerned that deals may be done? Are you concerned that Pakistan is perhaps edging closer to the United States as a result of this?

SINGH: We must please understand the ginger relationship with the United States is not a hyphenated relationship. It's not a reflection or a reaction, and it is not to be seen through the prism of any other kind of prejudice. India's relations with the United States are based on values, on democracy, subscription to democracy, on human rights, freedom, and these are not temporary issues or aspects. I think that they are a particular situation. A very grim reality faces the world today and it would be, in fact, trivializing the whole challenge if you began addressing a response to that challenge in this kind of fashion.

HOLMES: We could, however, conceivably see an alliance of sorts between the United States, Russia, Pakistan and India. Obviously, an inconceivable alliance only a couple of years ago. Do you think it's an alliance that would work in this regard, in this set of circumstances?

SINGH: Well I have stated so publicly and shared the thought with the political spectrum of India, that what India stands for is really the establishment of a concert of democracies against terrorism, unified in purpose and in resolve. Because as President Bush quite rightly has pointed out, that the issue is really addressing ourselves to the system, that mentality which gives birth to these kinds of attitudes. It's not as if an individual has declared war against a great country like the United States of America. And the United States is in turn declaring war against an individual. It is the system that gives rise to all these tendencies ...

HOLMES: Jaswant Singh ...

SINGH: ... that we have to collectively address.

HOLMES: ... we have to leave it there. Jaswant Singh, Indian external affairs minister, live from New Delhi. Thank you very much, minister, for being with us.

OK, back to you now, Colleen.

McEDWARDS: All right, Michael. Thanks very much.

We want to bring you up to date now on what's going on in New York at ground zero. As you know, only five survivors have been discovered among that rubble in New York City, that's since Tuesday. Thousands of tons of debris have now been removed from the area around the collapsed World Trade Center Towers. That's helped relief workers recover 159 bodies, 60 of them still unidentified.

Almost 5,000 people remain missing; most presumed dead. But the city's mayor is still holding out hope that survivors can be found.

(BEGIN VIDEO CLIP)

GIULIANI: We're advised that you cannot, at this point, rule out the possibility that there may still be people that are alive, and the experts inform us of that. So if there's any chance to save even a single human life, we're going to try.

(END VIDEO CLIP)

McEDWARDS: Well, our Gary Tuchman joins us now from a rooftop position near the recovery site at the World Trade Center.

Gary, we just heard the mayor saying that experts tell him -- technicians tell him -- that there could still be people alive. What is it that they're hearing that still gives them hope?

TUCHMAN: I don't think it's anything they're hearing, Colleen. It's just that the possibility does exist that people could be in pockets -- which they refer to as voids -- and they could still be alive. We know from earthquakes throughout the world that people can survive for more than a week in situations like that. So that's what they're hoping for.

You know, it's Sunday morning right now in New York City, and soon the sun will come up on this most peaceful day of the week. But the scene here in this part of Manhattan is anything but peaceful. The streets are full of emergency vehicles. And behind me there's the potential that 4,900 bodies are buried beneath the rubble of where the World Trade Center went down.

It's an incredible number of victims. Just consider the fact, for an average, that each person has one hundred family members and friends. That means that half a million people would be directly affected by this. And that may be underestimating the number.

We want to show you some close-up pictures of the rubble and the efforts tonight -- or actually, Saturday night, New York City time -- for the thousands of workers to do their job. This is what was going on tonight, and the workers were digging with machinery, with shovels, with their hands, looking for the possibility of survivors.

As you've said, five survivors have been found. They were found the day of and the day after for the last 72 hours, nobody has been found. And that's very disappointing and discouraging news. But as we've said, no one is giving up.

About three hours ago, a find -- a very poignant find -- was made inside the rubble. And this gives you an idea of just how much rubble there is. A dump truck pulled out a fire truck that got stuck under the rubble when the World Trade Center building collapsed. The fire truck says ladder 18 on it. It's gray from all the rubble. It was pulled out, there was no one inside the truck. But that gives you an idea. We are talking about a grand total of 600,000 tons of rubble. That's the estimate that's on the grounds here in New York City.

So they will continue searching for survivors. No one's giving up just yet. But they certainly had hoped that by now they would have found a lot more people alive than they have.

Colleen, back to you.

McEDWARDS: All right. CNN's Gary Tuchman, thanks so much.

Now, about 300 firefighters still missing after this collapse. But the bodies of three of the forces top officials have been recovered: Peter Ganci, the Fire Department Chief; William Freehan (ph), First Deputy Fire Commissioner; and Father Michael Judge, the department's Chaplain. All three laid to rest Saturday.

HOLMES: Aftershocks from the fall of the twin towers rippling around the world, of course. In Kuwait, citizens and officials express support for their U.S. ally. Residents donated blood and Kuwait's defense minister offered his condolences in an address to U.S. troops.

OK, now in Israel, Foreign Minister Simon Peres is praising the way the U.S. is responding to the tragic events at the World Trade Center and also at the Pentagon, of course. Peres says the U.S. has always conducted itself with dignity in times of crisis.

(BEGIN VIDEO CLIP)

SIMON PERES, FOREIGN MINISTER, ISRAEL: America today makes all of us feel painful, but makes all of us feel proud that the mightiest country never used force but for the most noble human needs and hopes. The United States went to war. Our children paid a heavy price in the first, in the second, and many other wars, never for any selfish purpose; always their neighbor, the weaker one, the needed one, to enjoy freedom and hope and security. God bless America.

(END VIDEO CLIP)

HOLMES: Peres was addressing thousands of Israelis who gathered in Jerusalem, Saturday, for a rally in support of the United States.

Meanwhile, in their own way, athletes and sports fans around the world, on Saturday, honored the victims of the terrorist attacks. English Premiere League teams, Liverpool and Edmonton (ph), joined thousands of fans at the Gridisam (ph) Park Stadium in a moment of silence before their celebrated traditional derby match. A wreath was laid on a huge American flag that adorned the inner circle.

There were similar moments of homage across Europe. In Germany, the Cast (ph) Auto Race was renamed the American Memorial 500.

McEDWARDS: A quick update again on the latest developments. Rescuers in New York digging through the rubble of what was the World Trade Center for the fifth straight night now. They say they still believe there are people buried alive -- perhaps under a large pocket of rubble -- somewhere in that rubble. But no survivors have been found in there since Wednesday.

Mourners gathered in New York City, Saturday, to pay their last respects to three top fire officials who died in the aftermath of the attacks. They were among the first groups of rescue crews who rushed to that scene. About 300 hundred firefighters still unaccounted for.

Police have arrested a second material witness. He is one of 25 people in police custody for possible immigration violations. The other person charged in connection with the investigation was detained at New York's John F. Kennedy International Airport Thursday, for allegedly holding a false pilot's license -- Michael.

HOLMES: OK, Colleen. Thanks.

Well as global markets prepared for a new week of trading, they of course are assessing the effects of last week's terror attacks.

OK, Richard Quest joining us now from London with a look at what might be in store for the world of business.

Richard, it's going to be a heck of a week in the business world.

QUEST: Oh, absolutely a week that few of us will ever have thought we would have seen. The New York markets, of course, have been closed since Tuesday. And despite the terrorist attack against the World Trade Center in New York, U.S. financial markets will resume trading on Monday morning.

On Saturday, the New York Stock Exchange tested its systems in preparation for the first day of business since the tragedy. CNN's Greg Clarkin reports on the preparations.

(BEGIN VIDEOTAPE)

GREG CLARKIN, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): The opening bell is expected to sound on Wall Street Monday morning, breaking the silence that has blanketed the New York Stock Exchange since Tuesday's terrorist attacks. Sitting just a few blocks east of what was the World Trade Center, the NYSE has been covered in ash. But the grime has now washed away, replaced by an American flag.

After hours of testing its internal systems Saturday, Chairman Richard Grasso declared all systems go and vowed Monday's opening bell would be rich in symbolism.

RICHARD GRASSO, NYSE CHAIRMAN: To send a very important message to the criminals who so heinously attacked this country that they've lost. The American way of life goes on; business recommences.

CLARKIN: The NYSE sustained no major structural damage. And inside the more than 100-year-old building, technicians tested the systems, linking brokerages to the Exchange, and the results have been encouraging.

CATHERINE KINNEY: We are very pleased with the progress that all the firms have made; particularly, our major firms who account for the line share of the order flow here.

CLARKIN: Uptown, the Nasdaq has run tests of its own and termed those results terrific. It, too, vows to begin trading Monday morning. As for the American Stock Exchange, it suffered damage to its building and will trade out of the NYSE. The Exchange and the city of New York have worked to restore access to the financial district. Once there, employees will find even tighter security around the NYSE and everything from counselors to deal with trauma, to surgical masks to deal with dust, will be readily available.

Greg Clarkin, CNN financial news, New York.

(END VIDEOTAPE)

QUEST: Now the opening ceremony -- which of course if usually performed by a chief executive or other dignitary -- on Monday morning it will be performed by firefighters and police officials from New York City.

The price of crude oil has traditionally been sensitive to times of uncertainty such as these. And, indeed, prices rose sharply on Friday, heading over 29 dollars a barrel. So what's the outlook for this week and, indeed, for further ahead?

Joining me now to answer some of those questions, Gary Ross, Chief Executive of Pira Energy Group from New York. Gary, 29 dollars a barrel is what we saw. We know that there was a spike initially after the attack. This is what markets do, isn't it?

GARY ROSS, CHIEF EXECUTIVE, PIRA ENERGY GROUP, NEW YORK: Exactly. I mean, the first thing that happens are the shorts (ph) people have to cover. People that need oil have to go out there and buy it. So the initial impact, about 15 to 20 percent. But Richard, keep in mind, prices are still 10 percent below where they were a year ago.

QUEST: What we can say, though, in terms of the supply of oil and the actual demand of oil at the moment?

ROSS: Well, I think the market is balanced. The problem is the perceived insecurity of Middle East supply. Some 60 percent of the worlds crude oil that's traded comes from the Middle East. And you have very import-dependent markets, from Asia to Europe, even the United -- obviously, the United States. So that's -- the issue is the perceived insecurity of some U.S. military action potentially impacting supply.

And you also have consumers going out there and building their product stocks. A bit of hoarding going on both in Europe and the United States and probably Asia.

QUEST: As the prospect of retaliation gets closer, so the disruption of supply from the Middle East will become the key factor. Putting it bluntly, prices will rise again.

ROSS: Well, prices could go up further next week. But I think you have to keep in mind, there's plenty of spare capacity. OPEC has something like four and a half million barrels there of spare capacity. During the Gulf War, there wasn't any spare capacity. So OPEC has four and a half million barrels; they've already cut, this year, three and a half million barrels a day. If prices were to go up further, I think OPEC would gladly increase supply to the market.

QUEST: On that point, the political aspect of OPEC virtually from day one of this crisis, OPEC made it clear that it wouldn't wish to be seen to be doing anything that would hinder the United States or indeed the oil supply market.

ROSS: I think that's right. I mean, OPEC's economic policies and political policies -- it's very important that the most important economic power in the world -- that they satisfy all the requirements. It's not in their interest to have very high prices. It's only going to hurt them in the long term.

QUEST: Perhaps OPEC is very -- wants to be -- not only -- OPEC not only wants to do the right thing, it wants to be seen to do the right thing.

ROSS: Oh, for sure. No question about that. They're all supporters of the United States and the allies. Certainly, they want to be seen.

QUEST: Finally -- and is there actually a shortage of crude oil that would push up prices?

ROSS: No, there's no shortage. But if there's any real tightness, it's in products. Because, basically, the consumer is going to be hoarding products and, essentially, there's plenty of crude oil. And OPEC could supply incremental crude oil. It's going to be whether the refining system and logistical system can appropriately supply the products.

QUEST: And in a word, you wouldn't be surprised to see prices next week?

ROSS: Yes, but I think it will be limited. We're not going to be seeing anything like we saw in the Gulf War.

QUEST: OK, very many thanks, indeed.

Now the U.S. airline industry has been losing as much as 300 million dollars a day since Tuesday's attacks. Flights may be resuming, but airlines are taking measures to reduce losses. Continental Airlines says it's reducing its work force by more than a fifth, 12,000 jobs. And the U.S. Transportation Secretary, Norman Mineta, plans to meet with heads of the major airlines next week. Some industry officials are already calling for government compensation.

(BEGIN VIDEO CLIP)

GORDON BETHUNE, CONTINENTAL AIRLINES: I, now -- and we, all of us -- call on the president of the United States and members of our Congress to take immediate action to restore the stability of this vital industry on which our whole nation's economy heavily depends. Our industry needs direct and immediate government-sponsored liquidity and aid if we -- and a vital part of our economy -- are to survive.

(END VIDEO CLIP)

QUEST: Continental Airlines and Northwest are each cutting their schedules by 20 percent.

Commercial pilots suddenly find themselves in the midst of an air war, and it's not the first episode of sky piracy. But our CNN's Jeanne Meserve reports on this week's compelling new challenge to air transport security.

And I beg your pardon; unfortunately, we don't have that report for you at the moment. We will be taking a look at the challenges facing the business community all through the week here on CNN.

Jeanne Meserve now joins us, of course, to talk about the challenges facing airline pilots.

(BEGIN VIDEOTAPE)

MESERVE (voice-over): For pilots, the rule of thumb in hijackings has always been: be passive, be cooperative, get on the ground and into negotiations. Tuesday, the rules changed instantaneously. Commercial pilot, Paul Emems, was in the air.

PAUL EMENS, COMMERCIAL PILOT: And my copilot and I basically looked at each other and said, "Do you want to fly or fight?" And he had his big steel flashlight, and if anybody came through the door, he was going to go after them and I was going to get the airplane on the ground.

MESERVE: According to the Airline Pilot's Association, pilots and flight attendants, the airlines, the FAA, and law enforcement, are engaged in an unprecedented cooperative effort to improve aircraft security quickly.

CAPT. DUANE WOERTH (ph), AIRLINE PILOTS ASSOCIATION: We are at war, and we are taking it and treating it that way and everybody's cutting through the red tape, making decisions.

MESERVE: Among the changes being considered on an expedited basis: whether to provide law enforcement escorts; whether to arm pilots with weapons; and how to modify equipment, like the cockpit door, so it is a more effective barrier.

WOERTH: This new door that we want -- I hope by Friday -- really, by Friday, I want a certification process approved by the FAA and the manufacturer, and I believe we can have that and are on our way to getting that door.

MESERVE: Some airlines have told their pilots to do what they must to save themselves, their aircraft, and their passengers. Pilot Paul Emens says if his plane is under threat, passengers better hold on.

EMENS: You should be wearing your seat belt.

MESERVE: What does that mean?

EMENS: We can start to maneuver that aircraft so that he cannot function.

MESERVE: De-pressurize?

EMENS: We can de-pressurize the aircraft, we can float around the sky, we can do all sorts of things. And he won't be walking when it's over.

MESERVE: Despite the financial distress of the airline industry, the Airline Pilot's Association says no security measure is off the table, no matter what the expense. But some aviation watchdogs are critical. They say the problems and the solutions were known long ago, and they ask, "Why are we seeing corrections so late? Too late."

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

QUEST: A look there at some of the challenges that are facing the business world and industry in the week ahead.

Now back to Colleen in Atlanta. She's got more news on America's New War -- Colleen.

McEDWARDS: All right. Thanks so much, Richard. Always good to see you.

We've been telling you, of course, all morning here about the importance of Pakistan -- because of its border with Afghanistan and also its relationship with the ruling Taliban -- the U.S. asking Pakistan for its support.

And we want to take you right now to Tom Mintier, who is in Islamabad -- Tom.

MINTIER: Colleen, Pakistan has already pledged its support to the United States to do whatever is necessary. While they haven't spelled out the details of it, it's pretty clear that the cooperation -- as President Musharraf has said -- will be total, full and complete.

Joining us now is Imran Khan. Most people know you around the world as a cricketer, but you're a politician now. And you may be new to politics, but the reality is that President Musharraf is going to have hard sell in this country to convince the public that he's made the right decision to go along with the United States. How difficult?

IMRAN KHAN, CRICKET PLAYER AND POLITICIAN: Extremely hard to sell it to the public because the majority of Pakistanis would have liked to have stayed out of this. It's a no-win situation for them because once they get involved -- which they have -- and if the eight bases are used -- which there's every possibility now -- that means war against Taliban.

And war against Taliban means that we have almost a 1,400 mile border with Afghanistan. We have one million refugees -- Afghan refugees -- in Pakistan. We have religious groups that are supporting -- have supported -- the Taliban. And we have an element in Pakistan which will immediately turn against the United States once ...

MINTIER: Do you think the president made the wrong decision? Do you think there was anything else he could do?

KHAN: I don't think he had much choice. I think he was coerced into this. Pakistan is bankrupt; economic sanctions, perhaps even bombing, was threatened. I just don't think he was left with much choice.

MINTIER: He's meeting today with political, religious, media leaders of this country. What is he doing? Is he trying to justify his action in the public's eye?

KHAN: Yes, we are meeting with him today and we'll find out what were the sort of pressures he was under and he'll explain to us. And, I guess, try to mobilize the public behind his move.

MINTIER: How about the public sentiment toward the Taliban, toward Osama bin Laden in this country? There are long ties, long relationships. There are a lot of religious fundamentalists in this country who see what President Musharraf has done as totally contrary to what they believe in.

KHAN: Well let me first say that there's unanimous feeling that the people who perpetrated those horrors -- the terrorist horrors in the United States -- should be punished. That -- the people are unanimous. But, you know, to convince the people that Osama was involved, some hard facts and evidence should have been shown here. Perhaps on television, perhaps General Musharraf should go to the public and tell them about his involvement. Only then will there be less of a backlash.

Otherwise, the feeling is that it's this awful incident has been used to settle scores against the enemies of the United States, which Taliban prefers to be.

MINTIER: A couple of days ago someone told me that the Taliban -- a political analyst here in Pakistan -- said that unless the Taliban wants to be bombed back into the stone age, they need to hand him over and end this without taking more losses. Can that happen? Is there a diplomatic solution?

KHAN: Well that would be a solution that would create the least bloodshed. It would certainly be a solution that would save Pakistan from a possible backlash.

MINTIER: OK, Imran Khan, thank you very much for joining us.

Some very difficult decisions; some very tough talk going on right now at the president's office, where he is taking at least the leaders of the media and the religious community and the political community into his confidence. But as Mr. Khan just said, he's going to have a very difficult time selling it to the public -- Colleen.

McEDWARDS: Indeed. Tom Mintier, thanks very much.

We want to take you back to New York again for a moment. You see all the buildings in that area around where the World Trade Center was. Well those are other businesses and peoples homes. And people, of course, have had to stay away since the attack occurred. But now they're slowly being allowed to return to their homes and their jobs near the site of the World Trade Center.

Brian Palmer reports now on how they find their worlds forever changed.

(BEGIN VIDEOTAPE)

KEVIN SEGALLA, FILM PRODUCER: This morning I'm standing by the door there and I hear the plane and I look up and I just see this huge explosion.

BRIAN PALMER, CNN CORRESPONDENT (voice-over): Film producer, Kevin Segalla saw the obliteration of a landmark from his terrace with his one-year-old son, Griffin (ph). Segalla and his wife Michelle (ph) return to their apartment for the first time.

SEGALLA: My life -- the moment that plane went into the building -- really pretty much stopped. I think everybody's lives have stopped. And I don't live here anymore. I haven't been to work again.

PALMER: This was the view from his terrace that day. This is the view now. The area around ground zero covers about five square miles and was home to roughly 50,000 people.

When the towers collapsed, the familiar rhythm of life stopped in this corner of Manhattan. The West Side Highway -- one of the main roads downtown -- now the primary route for the massive recovery operation as well as the staging area for the effort, complete with a mobile animal hospital.

On the once bustling street corners of fashionable Tribecca (ph), military check points. Twenty miles of high-voltage cable -- all installed since Tuesday -- snake through the streets of lower Manhattan. Shuttered stores and a few reminders of the devastation just seven blocks away. Few shoppers, many curious passers-by, and shell-shocked residents, many moving in with family and friends north of the area.

HOLLY HAFF: Everyone is so focused on the rescue that all of us in the neighborhood who are displaced, you know, are really secondary. And that's how it should be, except we don't know what to do. So we're hoping to try to organize amongst ourselves.

SEGALLA: Every bit of activity out there is geared towards this disaster. And, you know, you walk out there and you can't get it out of your head if you're seeing it every second.

PALMER: Seeing it every second, living like this for months. Normal life, as it was before, likely years away.

Brian Palmer, CNN, New York.

(END VIDEOTAPE)

HOLMES: Now of course nearly 5,000 people are still missing after Tuesday's attacks, but friends and relatives have not yet given up hope. The focus of their efforts to find their loved ones is in New York City Armory, where details of the missing are registered.

Now joining us from there, CNN's Michael Okwu. He's been there for some time.

Michael, what is the latest?

OKWU: Michael, you know, it occurred to me that at times like this we talk so often about numbers. But it's something that we in the media have to do. And I suppose, in some ways, it helps remind us that there are so many extraordinary tales to tell, so many stories worth telling. Forty-nine hundred people -- or over 4,900 people -- buried under the ash and rubble of the World Trade Center. And possibly tens of thousands of people, relatives, connected to that. Hoping against the slimmest bit of hope that they are still alive and trying in some way to find some measure of resolution.

And to do that, they come here to the Armory at Lexington Avenue and 26th Street, the emotional ground zero. Here they basically fill out seven page forms where they're asked to give details about identifiable traits of their loved ones. Everything from scars -- recognizable scars -- strange scars to their hair color to their eye color to the kind of nail polish they like to use.

They're either, in the end, on a list of those people who were taken to the hospitals or they officially get put on the list of the missing. Since Thursday, some 3,100 people have passed through these doors. And yesterday, the New York City Department of Health announced that a company -- one of the largest medical lab companies in the country, called LabCorp, was offering free DNA collection that may ultimately help rescue workers identify some of the bodies.

They are asked to provide tooth brushes, hair brushes, samples of saliva from the closest blood relative. Earlier today -- tonight -- I spoke to one young woman who is missing her stepsister.

(BEGIN VIDEO CLIP)

YASMINE LEON, STEPSISTER MISSING IN WTC: Hope is still there, but it's dwindling fast. I keep hearing reports of bodies found of -- you know, unidentified bodies -- and every time I hear that I say, "Oh my god, could she be one of those people?" And my only thought is right now that I just hope that they find her -- herself -- to give us that closure if it gets to that point. I just hope that we can get that closure as a family and move on from there and mourn her together.

(END VIDEO CLIP)

OKWU: Michael, there is a lot of love here. There are relatives, of course, who traveled here together to try to reach some sense of resolution. And there are other families who see other families in need and sometimes run into New Yorkers -- other pedestrians -- who just happen to be walking in the neighborhood, and there's a great deal of emotional outpouring.

So there's love here, but if you look at the headlines this morning -- the New York Post, the local tabloid here in New York -- "War." And on the Daily News, again, "We're At War." In the coming days you will probably here the word closure, but here -- at the Armory on Lexington Avenue -- nobody will return back to normal -- Michael.

HOLMES: All right. Michael Okwu, as always, thanks very much. There, at the Armory, bearing witness to sadness and some hope. Michael, thanks -- Colleen.

McEDWARDS: Well you know what -- and when you see the people there, you sometimes wonder how it is that they can keep their hope.

We want to bring you a Bruce Burkhardt story now, an account of persistence and diligence that unfolded right before our eyes. Watch.

(BEGIN VIDEOTAPE)

BRUCE BURKHARDT, CNN CORRESPONDENT (voice-over): Another day in the Red Cross shelter in Gramercy Park for Rose Franklin (ph). Another day wondering what happened to her husband, Harry (ph).

ROSE FRANKLIN: I hear him (UNINTELLIGIBLE).

BURKHARDT: On Tuesday morning -- election day in New York -- Rose and Harry were working as volunteers at the polling station on Chamber Street, just a few blocks away from the World Trade Center.

FRANKLIN: I go out and I see all that smoke.

BURKHARDT: While Harry stayed inside, Rose wondered outside to check out the big boom. She wondered too far. By the time she tried to return, chaos had taken over and she was swept up in the stampede.

FRANKLIN: They kept pushing everybody up north, up north, up north.

BURKHARDT: Now confused, wondering where her husband was, the 81-year-old Rose stumbled along for two and a half miles before winding up at a shelter. It was there that she met a volunteer names Sergio (ph), or as Rose calls him, her angel.

SERGIO: At the beginning, she was one more person there. Slowly you get together and you talk, which is really the only thing you can do.

BURKHARDT: At first, Rose said she had no family. But after warming up to Sergio, said she had a son in Boston. Though she didn't know his phone number or where he worked, Sergio tracked him down. It paid off. The son reported that he had received two messages from his father. He said he was alive and well, but the message didn't say where he was.

SERGIO: He's not sure how to talk to an answering machine, and he's probably pretty confused.

FRANKLIN: He's always been on these heart pills because he had a triple bypass. So I've never known him to be without those pills.

BURKHARDT: Sergio tried everything, searching shelters, hospitals.

SERGIO: Then I went to the Armory, hoping that he would be there looking for her. He wasn't.

BURKHARDT: So that was to be our story. A couple, in their golden anniversary years, separated by tragedy. The End. Well, not quite.

SERGIO: We got him.

UNIDENTIFIED MALE: What?

SERGIO: He left a message on my phone.

UNIDENTIFIED MALE: The husband did?

SERGIO: Yeah.

UNIDENTIFIED MALE: Are you sure?

BURKHARDT: Sergio, who just a few minutes before this had left the shelter, came running back to tell Rose the great news: Harry had left a message.

Harry, it turns out, had been hunkered down in the couples' apartment in an evacuated zone near the Trade Center. Without electricity, without water, Harry didn't know whether Rose was alive or dead. No one thought to look for him there.

FRANKLIN: Harry, where've you been, Harry?

HARRY FRANKLIN: Where have I been? Where has she been?

BURKHARDT: Sergio and Red Cross officials then produced their version of "When Harry Met Rosie."

HARRY FRANKLIN: I didn't really lose her.

BURKHARDT: It was Sergio's notice in the Armory that did it, when it happened to show up in a local TV news report. A neighbor saw it and told Harry.

ROSE FRANKLIN: After I met Sergio, forget home.

BURKHARDT: For Sergio, confirmation of his notion of what volunteering is all about.

SERGIO: We have to concentrate on the small things. Go to a place, and when you find somebody sitting down, sit down by their side like I did and talk to them. And you might be surprised of the information that you can get. And just one person -- stick with that person -- and with that information you can make a miracle happen.

FRANKLIN: Where's Sergio?

HARRY FRANKLIN: Sergio is with me.

BURKHARDT: Bruce Burkhardt, CNN, New York.

(END VIDEOTAPE)

McEDWARDS: There you have a reason for hope.

HOLMES: Indeed.

McEDWARDS: Well CNN's coverage of the U.S. terrorist attacks is going to continue right now with Jim Clancy and Ralitsa Vassileva. We're done here.

HOLMES: Indeed. We are done for the night. As Colleen and I leave you, we're going to leave you also with some pictures. Some pictures shot immediately after the second airliner hit the World Trade Center. More chilling images at the end of a week of chilling images.

Stay tuned to CNN.

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

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