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Mystery Man Behind Picasso Painting; Benghazi Suspect Captured By U.S. Forces; Arwa Damon Interviews Khattala; Clinton On Benghazi; Militants Within 40 Miles Of Baghdad; Militants Near Baghdad; Protecting the U.S. Embassy

Aired June 17, 2014 - 13:00   ET

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


WOLF BLITZER, CNN HOST: Right now, the U.S. captures a key suspect in the Benghazi attack that left four Americans dead. A Libyan militia leader is now in U.S. custody. It's the first arrest in connection with the 2012 attack.

Also right now, ISIS fighters move in closer and closer to Baghdad. Gun battles with the Iraqi security forces are underway just north of the capital. Our own Anderson Cooper is there. He'll join us live this hour.

And right now, Hillary Clinton getting ready to face what could be her toughest audience yet. Iraq, Benghazi, Clinton's new book. All topics, "Fair Game," at CNN's exclusive town hall event.

Hello, I'm Wolf Blitzer reporting from Washington. We want to welcome our viewers in the United States and around the world. We start with the breaking news out of Libya. One of the prime suspects in the 2012 attack in the U.S. consulate in Benghazi has now been captured. He is in U.S. custody. Four Americans died in the attack, including the U.S. ambassador, Chris Stevens.

The White House released a statement from President Obama that reads, in part, this individual will now face the full weight of the American justice system.

Barbara Starr's over at the Pentagon. She's got details. Our Senior International Correspondent Arwa Damon is standing by in Iraq. But, Barbara, first to you. The arrest, this is the first arrest, connected with the Benghazi attack. Give us the details. What is -- what is the Pentagon saying?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Wolf, more than just an arrest, this was a capture by U.S. special operations forces. They are not telling us which unit but when special operations forces means tier one guys. This is on the level of SEAL Team 6, Delta Force. Those are the ones that go into these types of contested areas. We are told this happened near Benghazi. Not perhaps in the city center itself. Suggesting perhaps that Ahmed Abu Khattala has been traveling or moving around.

We know that the U.S. military, the intelligence personnel and the FBI now had had their eyes on him for some time. They were developing the very specific intelligence when and where to move in. They had tried, back in October, to get him. That attempt did not work out. They had been keeping eyes on Benghazi very quietly, very coherently for the last several months.

We expect more details in the coming hours, and days perhaps, on how this mission went down. But Abu Khattala, now, as the president said, will face U.S. justice. He is expected, we are told, to be on his way to the United States in the coming days. Charges in Washington, D.C. have been unsealed. They include, I want to read them to you, killing a person in the course of an attack on a federal facility, providing and attempting and conspiring to provide material support to terrorism, discharging, brandishing, using, carrying firearms.

I think Arwa will tell you more about all of this and how it relates to what Abu Khattala says happened at Benghazi, quite different than what the U.S. charges are. They believe that this man was a major mastermind behind the September 2012 attacks that, of course, killed the U.S. ambassador and three other Americans -- Wolf.

BLITZER: Barbara, I want you to stand by. Arwa Damon is standing by. She's in Erbil, Iraq right now. But, Arwa, you've done an amazing reporting in Libya as well. And you actually met this man, Ahmed Abu Khattala, in Libya more than a year ago. You sat down with him. I want to show our viewers your fascinating report. It aired on CNN September of last year.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): U.S. officials have often suggested that they would be interested in speaking to a man named Ahmed Abu Khattala about the events the night of the attack. He's really not that difficult to find.

(on camera): We met with Ahmed Abu Khattala in public at the coffee shop of a well-known hotel here in Benghazi for around two hours. He seemed to be confident, his demeanor most certainly not that of a man who believed he was going to be detained or targeted any time soon. And he agreed to let us film audio, but not video, of our conversation.

(voice-over): He doesn't deny that he was there the night of the attack.

(on camera) (translated on screen): Can you describe in detail that night for us? What time did you get the news? When did you arrive and what did you see?

AHMED ABU KHATTALA (translated): Is this a journalistic interview or an investigation?

DAMON: It is a journalistic interview.

KHATTALA: The way that you are asking is like an interrogation.

DAMON: What time did you arrive?

KHATTALA: I can't tell you exactly. DAMON (voice-over): He claims he didn't even know the Americans had a consulate in Benghazi, never mind having any information about a specific location.

KHATTALA: I didn't know where the place was. When I heard, we went to examine the situation.

DAMON: His narrative is unclear and at times seems to be contradictory. He says when he arrived at the perimeter of the compound, he saw men carrying rocket propelled grenades and medium guns and the gunfire prevented him from entering. By the time he managed to get inside the compound, everyone, he says, had withdrawn.

Khattala claims ambassador Stevens suffocated because he was trying to burn important documents.

(on camera): Did anyone from the American or Libyan government get in touch with you?

KHATTALA: Never.

DAMON: Never?

KHATTALA: Never.

DAMON: No American official or Libyan official tried to contact you?

KHATTALA: Even the investigative team did not try to contact me.

DAMON: You're talking about the FBI team?

KHATTALA: Yes.

DAMON: And if they tried, are you ready to meet with them?

KHATTALA: Yes, no problem, but not as an interrogation. As a conversation like the one we are having right now.

DAMON (voice-over): But in the long rambling interview, he also accuses the Americans of using Al Qaeda as a boogie man whenever it suits them and adds --

KHATTALA: Al Qaeda is not something to be ashamed of. Al Qaeda is people who are devout, protecting their religion and people. America is the terrorist.

(END VIDEOTAPE)

BLITZER: That's Ahmed Abu Khattala strongly defending Al Qaeda. Arwa's with us. Arwa, that was an amazing report. You went to Libya once again last -- in 2013, May. That report aired on CNN around the time of the anniversary, 2013, of the -- of the attack in Benghazi, killing those four Americans. You see that now. It's pretty chilling.

Here's the question, how difficult was it to find him, because it's taken the U.S., clearly, a long time to capture this guy. He was one of the most wanted.

DAMON (live): Well, it wasn't that difficult, Wolf, as you saw in that report. And we weren't the first journalists to speak to him, although we were the first television crew. There had been other print journalists, a handful of them before us, that had managed to reach out to him as well. This was not a man that appeared concerned for his security either. He had a security detail with him, members of one of the other smaller Islamist militias.

Now, what might have been a factor in the duration of time it took for the Americans to pinpoint him is, one, the political climate in Libya. Launching this kind of a snatch and grab operation is one incredibly difficult, militarily speaking. But also, the Americans had a very tenuous relationship with the Libyan government. At the time, the Libyans themselves were reluctant to go after him. They, obviously, knew exactly where he was all along. And we had been asking him if the Americans had specifically put forward any kind of request for the Libyans themselves to go after him.

Right now, the climate in Benghazi is one that has really seen significant operations being launched by what -- a man who's known as the renegade general, specifically going after (INAUDIBLE) on various other Islamist groups. There's been this big backlash on (INAUDIBLE) perhaps creating a political climate inside the country that would allow for less of a backlash after the U.S. launches an operation like this one.

But then, also, there's the reality of intelligence gathering. After the U.S. consulate and the annex, the CIA annex, were affectively shut down after the attack, the U.S. lost a significant number of its assets on the ground. Its eyes on the ground, its boots on the ground were no longer in Benghazi operating in the way that they were. So, that might have been part of the factors, some of the factors that contributed to the duration that it took the Americans to get their hands on him.

BLITZER: Long before U.S. Special Forces caught up with Ahmed Abu Khattala, Arwa Damon caught up with Ahmed Abu Khattala. Arwa, thanks very much. We're going to get back to you on what's going on in Iraq and other news. Stand by.

Up next, the Islamic militants pushing closer and closer to the Iraqi capital. The latest on ISIS and its brutal march across Iraq. We'll go live to Baghdad. Our own Anderson Cooper is on the scene.

And coming up late, Hillary Clinton can expect a lot of questions today about the Benghazi terror attack, the capture of this key suspect by U.S. forces who, we're now told will be brought before U.S. justice, a U.S. court of law, in the coming days. Hillary Clinton getting ready to appear in a few hours from now at a town hall event moderated by our own Christiane Amanpour.

(COMMERCIAL BREAK)

BLITZER: Militants on a murderous rampage across Iraq are now less than 40 miles from the capital, Baghdad. ISIS fighters are battling for control of Baqubah, that's 37 miles to the north. They stormed the police station. They luded (ph) the weapons. But the governor's office says Baqubah has not fallen to ISIS militants. Anderson Cooper is in the Iraqi capital. So, what's the situation like in Baghdad, Anderson, right now?

ANDERSON COOPER, CNN ANCHOR, "ANDERSON COOPER 360": Well, it's been a deadly day outside the capital and inside the capital as well. There were six bombs set off inside Baghdad today, five roadside bombs, at least one car bomb in Sadr City. A total of 12 -- at least 12 people killed, according to Iraqi police. Dozens wounded in those multiple bombings.

There is in -- very tightened security here in the capital. We went out. As soon as we got out of our vehicles, police were instantly on us, asking for identity papers. That has not been enough, though, to stop the bloodshed within the city itself. And as you reported, the fight for Baqubah continues from all reports.

If the -- if ISIS fighters are able to take Baqubah, that will put them within some 37 miles of Baghdad. That's the closest they have gotten thus far. And it's, basically, a straight shot from Baqubah to the gates of Baghdad -- Wolf.

BLITZER: Anderson, a top priority, of course, is protecting, what, about 5,000 Americans in Baghdad, some of the surrounding areas, but most of them in the so-called green zone at that huge U.S. embassy complex. What's the latest on how the U.S. is preparing for whatever may come next, including the possibility of massive evacuations?

COOPER: Well, as you know, 275 military personnel have been brought to the region. More than 100 sent already to the embassy over -- since the weekend. Said to be about 100 more in the region. That's about all the U.S. military is saying, capable of dealing with airlifts, helicopter transport and the like. All of that really to protect the enormous U.S. embassy, which is really kind of a city within the city itself, inside the green zone. As you said, some 5,000 employees at that embassy. The largest, most expensive embassy that the United States has anywhere in the world. So to evacuate it, that would obviously be a massive challenge, which is one of the reasons they brought in these troops. Combat ready troops, according to the White House, but obviously not directly engaged in the fight against ISIS.

BLITZER: U.S. taxpayers spent, what, $1 billion -- $1 billion building that embassy complex in the green zone in Baghdad, not far away from where you are, Anderson. Let me get your analysis of this amazing statement released today by Prime Minister Nuri al Maliki's office actually accusing Saudi Arabia of appeasing terrorists, providing support to these radical groups. What's going on here?

COOPER: Well certainly Saudi Arabia, they make the case that the royal family in Saudi Arabia feels they are under a threat from ISIS, according to Saudi officials. ISIS has been leafleting some areas in Saudi Arabia, trying to get recruits to join the fight there. They view ISIS as a security threat. But clearly the government of Nuri al Maliki is pointing the finger at Saudi Arabia. Although the fact - the facts on the ground right now, Wolf, is that

ISIS has made so much money from the fight in Syria, taking over oil fields, extorting money, a variety of rackets, even looting antiquities and selling them, very high-priced items, selling them from some areas in Syria. And now that they've taken over Mosul, as you know, they were able to raid government banks, as well as private banks, and take a lot of gold and also hundreds of millions of dollars.

So this now may be the -- probably the most well-funded terror organization, jihadist organization, in the world with more money than al Qaeda in the Arabian Peninsula or other groups out there. So, at this point, it seems like they have no lack of funds and recruiting more people is probably going to be a lot easier for them now that they've had these successes on the battlefield here in Iraq.

BLITZER: You're absolutely right. And Mosul alone, the second largest city in Iraq, nearly 2 million people, they looted all those banks and they walked away, most estimates suggesting at least half a billion dollars, $500 million in cash and in gold among other priceless items.

Anderson, thanks very much.

Anderson will host -- will anchor a special edition of "AC 360" once again live tonight from Baghdad, 8:00 p.m. Eastern, right here on CNN. He will interview, among others, Tony Blair, the former British prime minister.

Anderson, we'll see you back then. We'll see you at 8:00 tonight. Thanks very much.

And up next, with ISIS fighters just miles from Baghdad and the U.S. embassy, I'll ask the former U.S. ambassador to Iraq, James Jeffrey, what needs to be done to make sure that that compound is secure.

(COMMERCIAL BREAK)

BLITZER: The heart of American operations in Iraq of course is the U.S. embassy in Baghdad. Right now, the U.S. is mobilizing troops to protect the compound. There are hundreds more on standby, as well as dozens of helicopters. Our Tom Foreman takes a closer look at what's at stake.

TOM FOREMAN, CNN CORRESPONDENT: If you look at a map of Iraq, you can see that Baghdad is more or less in the middle of the country. And if you look at a map of Baghdad, in the middle of the city, you can find the very heavily protected green zone. That's where the U.S. embassy is, boarded on the south side by the Tigris River. This was completed in 2009 at a cost of about $750 million, the biggest embassy in the world. And, of course, it is guarded on all sides. There are barricades. There are switchbacks and there are guard posts at ever place that you might get inside this giant blast wall designed to protect it from any sort of attack.

The man presiding over all of this is Ambassador Stephen Beecroft. He lived inside here. There are also a half dozen apartment buildings for the staff. And there are scores of offices to handle everything from trade deals to visas to diplomatic relations, even to agriculture. There are about 5,600 workers who labor each day behind these fortified walls, this bullet proof glass, with military troops standing by to protect them in the event of an attack. And they really can't leave here without heavy guard almost all the time.

As a result, this is a place where they have to have everything they need. There is a swimming pool. There are tennis courts. There's a cafeteria. There's even a movie theater. And the ability to generate their own water and power, all part of the cost of doing business in a very dangerous part of the world.

BLITZER: Tom Foreman reporting for us. Thank you.

So, what options does the United States have to make sure those people at the U.S. embassy are protected? There are other Americans, lots of them, in other places of Iraq. Let's bring in the former deputy national security adviser and the former U.S. ambassador to Iraq, James Jeffrey.

Ambassador, thanks very much for joining us.

Can you believe we're even talking about security at the U.S. embassy in Baghdad right now, and the fear that those 5,000 Americans who are there could be in danger, may have to be evacuated? What does that say to you?

JAMES JEFFREY, FMR. U.S. AMBASSADOR TO IRAQ (2010-2012): What it says is that there is a breakdown in the overall security of the host nation. At the end of the day, the host nation has the primary responsibility. When that begins melting away, as we see now, the president and his top advisers are going to focus on this night and day. This isn't Benghazi, Wolf. They're doing everything they can under these circumstances to ensure that the embassy remains safe. But the underlying situation, particularly places like Baqubah (ph) and to the south of Baghdad falling under the sway of the ISIS is a danger to essentially cut off and besiege the city. That's worry number one.

BLITZER: The president yesterday announced he wrote to Congress as part of the War Powers Act, that he was dispatching 275 combat equipped U.S. troops to the embassy area, that so-called green zone, to protect Americans. Two hundred and seventy-five doesn't sound like a whole lot, but here's a question, I don't know if you know the answer off the top of your head. Do these American combat forces who are now being dispatched to Baghdad, will they have immunity from Iraqi prosecution? Because that was the big sticking point when all U.S. troops were withdrawn, as far as that status of forces agreement that never really materialized.

JEFFREY: It's a very good question, Wolf. But in an emergency situation, the president, as commander in chief, can do everything under the Constitution to protect Americans. And that's the underlying reason why those American troops are now there.

BLITZER: When I hear 275 are on their way, I begin to worry that could just be the beginning. There may be a whole lot more troops need. Is that your fear as well?

JEFFREY: It's not my fear. First of all, the president has promised no American boots on the ground, other than these. And that's a valid position. What he has to consider, and I'm sure they are considering, is to use air power to stop this drive on Baghdad itself. If they can do that, that will stabilize the situation, relieve the pressure on us for the embassy and, most importantly, preclude Iran from intervening with significant ground troops on the side of the largely Shia government. That's the immediate problem. The political situation and what to do with the huge chunk of Iraq under ISIS control now, that's a longer term problem.

BLITZER: You think this is the beginning of the end of Nuri al Maliki in Iraq?

JEFFREY: I think that Nuri al Maliki has an very uncertain future as prime minister.

BLITZER: Because on top of everything else -

JEFFREY: Are the -

BLITZER: His office issues a statement accusing Saudi Arabia. Saudi Arabia being behind this ISIS, this terrorist attack on Iraq. What do you make of that decision by the office of the prime minister in Baghdad?

JEFFREY: There's always been bad relations between the Maliki government and King Abdullah of Saudi Arabia. And the fault has not been entirely on Maliki's fault, on Maliki's side. But nonetheless, the Kurds are very unhappy at the relationship with Baghdad right now. Maliki's going to have to change his tune and do many things differently, very quickly, Wolf, if he wants to hold his country together.

BLITZER: James Jeffrey is the former U.S. ambassador in Baghdad.

Ambassador, thanks very much for joining us.

JEFFREY: Thank you.

BLITZER: Thank you.

Just ahead this hour, President Obama under a lot of pressure to respond to the crisis in Iraq. You just heard that analysis. But a Democratic congressman says, not so fast, Mr. President. Congressman Adam Schiff of the Intelligence Committee standing by to join us live.

Also coming up, Hillary Clinton prepares for an exclusive town hall event today, moderated by our own Christiane Amanpour. What will Secretary Clinton have to say about the arrest of a key suspect in the Benghazi terror attack?

(COMMERCIAL BREAK)