be incorporated in the kurdistan region. in that sense, he's no different. but this split between the k.d.p. and sort of the political parties and other parties is significant as this conflict over disputed territories is going to play itself out in the coming year, especially as we are going to approach a time for when the united states is going to withdraw its troops. now, there are three things going on. one is the u.s. troop withdrawal, and maybe, just like the announcement of a troop withdrawal was preceded by a surge, now we see that the withdrawal from the disputed territories and from the areas in northern iraq is preceded by sort of a mini surge that the general announced yesterday, which is the additional deployment of american troops ahead of a withdrawal in order to bring down tensions between the regions. but this is a stopgap measure clearly aimed at reducing tensions, but it's not in itself a solution to the problem of the disputed territories. and worse, it could actually make the parties on the ground depend

kurdistan democratic party that is now headed by the original founders son, the president of the kurdistan region the patriotic union of kurdistan, which sprang from the kdp in 1976, which is led by jilal talabani, who is also now the president of iraq. these two parties have been at loggerheads at many times but have also cooperated on a number of occasions as they are still doing now. they fought a civil war in the 1990's, but they have made peace since then -- an uneasy peace -- and they have tried to reintegrate the two separate administrations that they had set up. these two are largely integrated at the top level, but underneath, a lot is still stirred. a lot of the members of the parties do not get along at all, and there is a lot of conflict. moreover, because these parties have had a very difficult transition -- and i say that acknowledging that these transitions are always difficult -- from a guerrilla movement to a government that needs to administer its territory, there have been a lot of complaints from the kurdish people, especially about corruption, the lack of governance, the lack

not necessarily the kurdistan region. the resources have grown and i've seen the un i lateral steps there are two dimension that's are twoing to play this year. the second dimension is a regional one. they do not want an independent kurdistan. they want it to be weak and stable. they have no interest. turkey does not have an interest and is not able. they fear they are a stable iraq. the rest of iraq is going to be unstable. they don't want to be that stable and blossoming that it might start to act on the situation to be independent. they play the difficult game of keeping kurdistan stable by weak. moreover what these states also want especially turkey is part of those resources. it is access to oil and gas inside the kurdistan region. if they do have oil and gas, the more south and southwest you go from the region into the territories. the better the quality of oil and the larger the quality of oil and gas. that's why we show you the third map. we'll put all of this together. >> we have a map that shows the region in the

ng held tonight in iran they were arrested after crossing the border into iran's from iraq's kurdistan region. they entered kurdistan from turk can where our chief foreign correspondent richard engel is tonight on this developing situation. richard, what do we know? >> good evening, lester, from downtown istanbul, this appears to have been a camping trip gone wrong a senior kurdish official told nbc news that the american ares entered northern iraq into the region of kurdistan which is semiautonomous, relatively stable on tuesday. some tourists do go to kurdistan, it's not exactly a p popular defendant nation, they stayed in kurdistan for a few days, mostly staying in hotels. then on friday, they were camping right along the iranian border. it's a beautiful area full of mount, they were near a waterfall and that when they crossed into iran according to iranian officials and were quickly surrounded by iranian security and remain in detention. the u.s. state department has asked for some clarification and is starting to investigate, asking switzerland, which represents u.s. interests in iran to

he strongly holds these territories should be incorporated into the kurdistan region. so it is no different than barzani. but this split between the kdp and the political parties is a significant as the conflict over disputed territories is going to play itself out in coming years, approaching a time where the united states will withdraw troops. three things are going on. what is the u.s. troop withdrawal, and it's just like the announcement of the withdrawal was preceded by a surge, now we see that the withdrawal from the disputed territories and areas of northern iraq is preceded by a mini-surge that was announced yesterday, involving additional deployment of american troops ahead of withdrawal to bring down tensions between baghdad and r. beall. but this is a stop-gap measure at reducing tensions. it is not in itself a solution to the problem of the disputed territory, and it could make the parties depended on american troops, which is not a good thing when you are going to take the american troops out. so there is an inherent contradiction between the short- term o

the area of iraq's north is run by the kurdistan regional government. it has been spared of a lot of the violence that has ravished the rest of the country. it is considered to be fairly safe and very much a tourist destination. this incident still very much under investigation. kurdish authorities are saying they are putting all of their efforts into trying to find out exactly what happened to these three americans. they are believed to have been detained by the iranians. perhaps there is some intelligence indicating they are currently in custody in iran. but kurdish officials saying they're doing their best to try to make sure that these three americans get back home safely. arwa damon, cnn, baghdad. >>> in tehran, trials under way for nearly 100 people arrested during the protest over the disputed presidential election. the state run news agency says the group includes several members of a reformist party. among the charges they face, destroying public property, creating panic in public, and beating up members of the security forces. a government com

. >> they entered into iran from iraq's kurdistan region. >> reporter: just before the three americans were captured, they contacted a friend, shon meckfessel, who stayed behind at the hotel. their last message, we are surrounded by armed men. irene meckfessel says her grandson is safe at the u.s. embassy. >> he had a cold, so he didn't go with them. he says they didn't go over the border. >> reporter: iranian tv says the trio was warned by border guards before they were arrested. another u.s. citizen, journalist roxana saberi, was recently arrested and held by the iranian government for three months. in joshua fattal's neighborhood, the uncertainty is frightening. >> you never know what they're going to do, what they're feeling. i guess it's really scary, and we can't really know because we're not there. >> reporter: the u.s. does not have diplomatic relations with iran, so it's up to the swiss to sort things out. the state department is doing all it can to obtain the release. ross? >> susan roberts in washington, thank you. >>> also in iran this morning, a resolution of june's disput

>> we have a deputy governor of the kurdistan region as saying that three people, definitely americans, were detained four days ago. we do not know whether they are tourists are not -- "we do not know whether they are terrorisourists or not we have arrested them." it is a mountainous area between kurdistan and iran. they strayed accidentally across the border. obviously there are not many tourists in iraq, but iraq's kurdistan area is safer than the rest of the country. in fact come to the kurdish regional government has been trying to promote tourism there. it seems that they -- the three of them were in the area, two of them freelance journalist, one of them a woman, and two of them had been apparently studying arabic in damascus. the word from a relative is that they had crossed inadvertently into iran, but obviously the u.s. is very concerned, and yesterday the u.s. secretary of state hillary clinton appealed for their release as soon as possible and said that the u.s. wanted to know their whereabouts. of course you know that the u.s. has no embassy. >> yes, there is no u.s. diplom

. >> they've been detained for illegal entry into iran from iraq's kurdistan region. >> reporter: but state department officials say the american tourists accidently strayed into iranian territory and are now in custody somewhere in iran. shane bower from minnesota, based in the middle east as a free lance journalist, sarah shroud from california, a writer, teacher based in the middle east. joshua fatal, environmental worker in oregon, curious about his father's native iraq and a fourth american stayed in the hotel in the iraqi city. >> he didn't go with them. >> reporter: mcfessel, an english teacher from seattle got an alarming phone call from his three friends saying we're surrounded. it comes at a tense time in u.s./iranian relations. iran accusing the u.s. of stirring up protests following the june election and meddling with its nuclear program. >> i think there's a decent chance iran will portray the three as spies. and leave it up to the united states or the three individuals to prove their innocence. >> reporter: family members hope the americans will not be used as bargaining

warned not to cross the border >> they've been detained for illegal entry into iran from the kurdistan regionicials say the case is under investigation. >> reporter: the swiss embassy is trying to step in and help but eight tricky time for diplomacy. iran's regime blames western powers for the continuing protests against president ahmadinejad. this weekend more than a hundred of his challengers were put on trial before he's sworn if in for a second term on wednesday with three americans uncomfortably close by. >> another deadly bombing rped through a busy marketplace northwest of baghdad on sunday. a car packed with explosives killed at least five people and injured more than 30 others in a former insurgent stronghold. the attack raises concern about the ability of iraqi forces to protect the population had when u.s. troops withdraw by 2011. >> a navy pilot missing since the first gulf war is finally coming home. the the remains of captain michael scott spiker were positive identified after a witness pointed out where he had been buried in iraq. spiker was shot down on the fist night of opera

they are two men and one woman who were on a hike in iraq's northern kurdistan region reportedly to learnut the middle east when according to iran's media they strayed across the border into iran. an iraqi official is claiming the three are cia operatives and the state department is now involved. >>> meantime, iran's supreme leader formally approved mahmoud ahmadinejad as president for a second term of iran. despite continuing massive protests i cuesing the government of risking the vote. ahmadinejad is to be sworn in on wednesday. >>> the family of navy pilot michael scott speicher says learning the fate the their loved one 18 years after he disappeared has been difficult. speicher left behind a wife and two young children when he became the first american casualty of the gulf war. his plane was shot down and his remains were never found until last week when an iraqi led u.s. marines to where he had been buried. >>> the fate of a popular cash for clunkers program is now in the hands of the senate. the president wants to keep it running. last week the house approved another $2 billion to

we told they were hiking in the mountains in iraq's self-ruled kurdistan region. kurdish officials say one of the hike is called a friend who did not go and said they crossed into iran by mistake and were surrounded by troops. iran's state-run television reports the americans were arrested after ignoring warnings from the border guards there. jonathan is in the newsroom sorting out what is from what is uncertain. the state department is dependent on suisse officials in this case. >> those diplomatic ties cut off during the hostage crisis, so the u.s. is simply having difficulty even finding out information and getting confirmation that these three americans are indeed being held by the iranians and who exactly is holding them. as the secretary of state made clear earlier today. listen. >> we asked our swiss partners who represent our interests in iran to please pursue our inquiries to determine the status of the three missing americans. obviously, we are concerned. we want this matter brought to a resolution as soon as possible. >> information is what they need fi

woman were arrested last week after reportedly straying across the border from iraq's northern kurdistan region. swiss diplomats are trying to learn more about the arrests on behalf of the u.s. which has no direct diplomatic ties with iran. >>> the family of u.s. navy captain michael "scott" speicher wants to find out exactly how he died. the fighter pilot was hot down 18 years ago on the first day of the first iraq war and his remains were finally found last week by u.s. marines. the family wants to know if he was alive after he ejected from the plane. >>> a bomb killed at least ten people today in western afghanistan. the taliban has claimed responsibility and has said it was targeting the local police chief who was wounded. afghanistan has seen a surge in violence ahead of this month's presidential election. >>> in sudan, bloody clashes have left at least 160 people dead, most of them women and children. they were killed on sunday when heavily armed south sudan tribal fighters launched a raid on a rival ethnic group. >>> a five-hour pro ses woupd through the streets of manila today as the bo

iran's reporter, they're backpackers, warned not to hike in the mountains of the kurdistan region because of how close it is to the border of iran. and were there clear markers? is it fairly understandable how one can cross into the border and not know it? >> actually, fredericka, there aren't any clear markers in the area. it is very much a natural border. police in the area, warned the three that they were into iran. you should watch yourself. these are tense times. you are americans and not iraqis. now the state department has issued a statement, saying it is asking swiss diplomats to look into these reports on iranian tv and if in fact the three are being held by the iranians to see if they can gain access. what we are hearing from kurdish officials is that they believe they are still being held at the border post. near the border to kurdistan. here is what we know about the journey the three took. in fact, four americans started out from syria where two are believed to be students. from syria to turkey and crossed into northern iraq. it might seem strange they were coming to a place

they've been detained for illegal entry from the kurdistan region. officials say the case is under investigation. >> reporter: an anonymous iraqi security official says the trio and a fourth traveler arrived in iraq from turkey on tuesday. on thursday, the three took a cab to the resort, and the self- ruled kurdish region, a popular hiking destination for tourist. they went on their hike friday. iranian tv says police warned the trio to be careful and not mistakenly cross the border. >> a security official said police had warned the americans not to cross the border. a senior american official says the u.s. embassy in baghdad is looking into the case. >> reporter: the state department is working with the swiss who represent u.s. interests in iran to confirm their capture. in new york, laura ingals, fox news. >> that area in northern iraq's kurdish region has been free of the violence that plagues the rest of iraq and has been relatively safe for foreigners. >>> also in iran, more than 100 iranian activists are on trial for protesting the presidential

they were hiking to mountainous area in northern kurdistan region. but they were surrounded by the military and arrested and the three are identified as sean gabriel maxwell, shane bower and sarah shore. a fourth friend stayed behind in the hotel there. were four in all but one stayed behind after he fell ill. the department of state is now asking swissland to try to intervene on behalf of the captured tourists. the swiss represented u.s. interest in iran for the past 30 years. >> jamie: right now, there is a close to the mystery surrounding a missing gulf war pilot. the u.s. navy identified the remains of captain scott spiker. we know that captain spiker's plane was shot down by enemy fire on january 17, 1991. this is confirmed. his mission was part of the first man strike of operation desert storm. the pentagon believes he was the first combat casualty of the war. joining me is jennifer griffin. jennifer, you broke the story this morning. how did you first hear that captain speichter had been found? >> i got a call at 6:00 a.m. this morning from a

that is the word we're getting from the hard-to-define border area between iraq's northern kurdistan region, and iran. the americans reportedly strayed into iranian territory while hiking. senior state department officials say the u.s. has identified three of the detainees and their families have been notified. for more, we turn to cnn's arwa damon who is monitoring all the developments for us from baghdad. >> reporter: the u.s. department of state has asked swiss diplomats to look into reports on iranian tv that they have, in fact, arrested three americans, and if this is true, to see if they could gain counselor access. iranian tv is reporting that the three were detained by the iranian military, along the border with northern iraq for illegal crossing into iran and failing to heed the border guard's warnings. the three's journey started in syria with a fourth companion. from syria they went to turkey and then crossed into northern iraq. and arrived in sulaimaniya on thursday. on friday morning, three of them, one stayed behind because he was sick, traveled to an area right up against the

name of one of the three american hikers arrested in iran after crossing the border from iraq's kurdistan region. he is joshua fatal and lives in this park in pennsylvania. his mother told cnn the family is only concerned with fatal's welfare. iran's state-run media says the men were arrested after they entered the country illegally. >>> president obama's top economic adviser predicts 2010 will be a milestone year. this morning on "state of the union," christina romer said she's confident the administration's economic recovery plan will create or save millions of jobs, but she adds, any major unemployment turnaround requires robust economic growth, which she says is not expected until the end of 2009, at the earliest. that and more ahead on "state of the union." >>> hi, howie. >> hi, jessica. you know, "the washington post" has a video series called "mouthpiece theater," where they pontificate with pipes and smoking jackets, but went too far with a routine about beer suggestions for politicians after that suds summit at the white house, which they said hillary clinton should drink mad pitch beer

backpacking in the kurdistan region of iraq. >> it was a hike through the mountains to the waterfall the three americans in iranian custody, accused of not heeding warnings from border guards, even possibly spying. >> diplomatic efforts have been fruitless. >> they have not been granted consular access to the three american hikers. iran has also not provided information about their location. >> the lack of progress prompted this recent travel warning from hillary clinton. >> go hiking, have a great time, you know, do journalism, but stay away from those borders. do not put yourself in these positions where you can end up in prison in a country like iran or north korea. >> and here with me right now are alex fattal, who is the brother of josh fattal, shane bauer's sister, shannon bauer, and sarah shourd's brother, chris rapp, all joining me now. thank you, guys, appreciate you being here. shannon, let me start with you. i know all of you hadn't had any contact with your siblings, obviously, but are you able to get information at all about their whereabouts, about what's going on in ir

name of one of three american hikers arrested in iran after crossing the border from iraq's kurdistan region. his name is joshua fattal and he lives in this house in elkins park, pennsylvania. iran's state-run media says the americans were arrested after they entered the country illegally. the state department says it is assisting the families of the americans. >>> and in canada one person was kill ed and as many as 76 other were injured when a stage collapsed during an outdoor concert in western alberta. a violent storm slammed into the area during last night's performance. the event organizer has canceled today's activities. all that and more ahead on "state of the union." >>> and right now, you're looking at a shot of the u.s. capitol in washington, d.c. that's a little humid, a little rainy on this summer morning. washington, d.c., always a little humid in the summer. and joining me in washington, here, chris cillizza of "the washington post," who writes the popular politics blog, the fix. time magazine national political correspondent, karen tumulty, and peter baker, white house corresp

they were traveling in iraq's kurdistan region last week when they apparently crossed into the unmarked boarder into iran and were surrounded by iranian soldiers. clinton says she is asking swiss diplomats who represent u.s. interests in iran to find out more. >> we want this matter brought to a resolution as soon as possible, and we call on the iranian government to help us determine the whereabouts of the three missing americans and return them as quickly as possible. >> we'll have much more on the case of these three americans believed held in iran here in "the situation room." >>> well, jack cafferty is in new york. and jack, great to see you for "the cafferty file." what are you following? >> likewise, suzanne. good to see you. all the -- all the places in the world to go hiking, who picks the border between iran and iraq? oh, let's go hiking. i know a perfect place. popular cash for clunkers program is out of cash, and its fate now lies in the hands of the senate. the initial pool for rebates to trade in gas guzzlers was a billion dollars. the obama administration says it'll end t

the americans were hiking into iran from eastern iraq's kurdistan region. there were no signs. that's according also to iran state run media and kurdish officials. >> we have been following this story from baghdad. >> reporter: iranian press tv report that three americans have been detained for strange across the border for failing to heed border guard warnings. one has been identified. a fourth american who was traveling with the group is believed to be at the u.s. embassy. the four started out their journey in syria, traveling to turkey before they crossed into northern iraq on july 28th. on july 30th they arrived and on the morning of the 31st the three traveled to an area they are the iranian border. sean stayed behind because he was feeling ill. the three at the border were said to have been warned by local tourist police that they were very close to iran and that they should watch out. the border in this area is a natural border and should pay attention because these were very tense times. the three were last heard from when they placed a phone callback to sean at 1:30 on

kurdistan and iran. how do you respond to that? >> actually, it's a rest area for that region. it's becoming very popular. shane and share arah live in damascus. as we go hiking, their location is syria and that would be a typical place for them to recreate. >> when you hear there are charges or allegations that perhaps they were spying on the behalf of the united states, i mean this is the timing of this, the political unrest in iran, the cia has done stranger things in the past than send young americans in to stir the pot. are you completely confident you know the entire story here with your own children in. >> absolutely. >> absolutely. >> no question. >> no chance of that. >> no. >> when you saw the results, bill clinton achieved in north korea, do you sit at home and say, former president clinton, what about us? >> we know the state department is working on our behalf. we've had outstanding support throughout the country, the united states and throughout the world. so we know our children are being looked after. >> we wish you some luck and some news and some information a

. >> they were in the kurdistan region. >> reporter: fattal wanted to know more about his family's roots. his father born in iraq told abc news "currently we are only concerned about the well-being of joshua and the other two people. we hope they come home as soon as possible." a fourth person, shon meckfessel an english teacher also hiked with the group for part of the time. meckfessel received a phone call from his friends saying "we're surrounded." meckfessel is now at the u.s. embassy in baghdad. these arrests come on the heels of the detention and eventual release of american journalist roxana saberi earlier this year who was accused of spying. the united states and iran haven't had diplomatic ties in 30 years. >> if they start talking about spying and start talking about needing to investigate and the thing runs into days and then weeks, that's a very serious message that they don't want better relations with us. >> reporter: the white house has yet to issue any kind of statement about this and it will also be something to watch to see how iraq responds and maybe helps out. robin?

three are former students at the university of california berkeley and were hiking in iraq's kurdistan regiony crossed an unmarked area. friday afternoon they contacted a friend to say they were surrounded by iranian soldiers. >>> a new strain of the virus that causes aids has been identified and for the first time traced to gorillas instead of chimpanzees. it was detected in a 62-year-old african woman from cameroon who lives in paris. >>> a terrifying moment for those onboard a continental flight en route to houston from rio de janeiro. severe turbulence injured 26, four seriously. they diverted to miami. a lot of people get scared, but erica, flying is very safe. this is very rare but wear those seat belts. a man who flies about 18 times a week. i'll take your word. >>> just ahead on "360," michael jackson's children and a fresh wild card from his former dermatologist dr. arnie klein. we have the latest on the custody ruling. what it means for katherine jackson and debbie rowe and the strange request from the dermatologist. what did he ask the judge for? that is coming up. >>> 40 years lat

kurdistan. some people call it "the other iraq." this region, even compared with the rest of the middle east, stands out in some many different ways. we did so many different ways. ♪ i have travelled extensively throughout the middle east. here, in kurdistan, it is like western countries. is there any comparison to america or israel? >> it is better that the imam should not inspire hatred. our prophet says we should not tolerate violence to others. >> islamic parties are united in campaign as one. >> we are all on the same common ground. >> after the invasion of iraq and in 2003, iraqi christians were attacked at churches throughout iraq. ♪ many christians escape the violence and found refuge here, in kurdistan. >> just a year ago, this church was built to accommodate christians to escape persecution from cities like baghdad and mosul. christians from all over iraq have found peace and comfort here. >> i am from baghdad. i came here. i am working in in this restaurant. >> the christian quarter in the capital city -- this business is thriving. t

>> they were hiking through the kurdistan region before they crossed an unmarked border near iran. they stayed at a hotel. the hotel owner repeatedly warned them not to hike in the area because it is not safe for u.s. citizens. a former u.s. intelligence officer saying it's lush areas with caves and water falls, though. he says the border is not clear my marked there and people have wandered across before. >> richard, thank you very much. we'll talk about what's needed to get them back home. >>> a lottery ticket worth $500,000 slipped out of one man's hand. how his incredible stroke of good luck was followed by a heart-breaking loss. >>> unemployment benefits are about to run out soon for a lot of people who cannot pay the bills, and the job market isn't getting any better. our money expert jennifer westhoven has this information. are these people and there are a lot of people going to get any more help? >> that's what we look for, robin. there are members of congress sounding the alarm. they want an emergency 13 week of extensions of benefits. we're talking about states that have

that is north iraq and you can see the line there to the north and east of that line is the kurdistan regionit was between 1991 and 2003 rngs to the south and west of it is the rest of iraq. this green line was the cease-fire line that came with iraqi troops withdrew not succeeding, they withdrew. that was the green line. in 2003, kurdish forces crossed that green line into areas that they claimed were a majority kurdish. for this, we need to see a second map of territories.

kurdistan. some call it the other iraq. this is a dominated region, it even when compared with the rest of the middle east. it stands out in some anyways. ♪ >> i have trouble throughout the middle east. in some places, i have gone down to israel or one of the west and countries, but here in kurdistan, it is like a western country. is there any influence from america or israel? >> it is better that the imam should not inspired hatred. our profit says we should not launch an attack on others. -- our prophet says we should not launch an attack on others. >> last month, islamic parties campaign as one. >> we all live on common ground. >> after the invasion of iraq in 2003, churches were attacked across all of iraq. ♪ many christians escape the violence and found refuge here, in kurdistan. this church was built to accommodate those fleeing produce and in cities like baghdad and mosul. christians from all over iraq have been able to find peace and comfort here. >> i am it from baghdad. i came here. i am working in this restaurant. >> the local business is

kurdistan is a mountainous autonomous region relatively safe in northern iraq. occasionally tourists do go there, it is increasingly popular for backpackers, those looking for some adventure travel. the americans were traveling in kurdistan, staying in hotels for a few days, then decided to go camping right on the border with iran. this was on friday. it was during this hiking/camping trip that iranian officials say three americans crossed the border into iran. it is not clear if they knew they were crossing into iran. that border is not clearly marked. there were originally four backpackers. one of them, however, decided not to go on this camping expedition. he stayed back at the hotel. he was the last person to speak to his friends, and heard them on a cell phone say something has gone wrong, we have been surrounded by iranian security. the u.s. state department is trying to help. it's contacted switzerland which represents u.s. interests in iran. there are no direct u.s./iranian diplomatic relations so the united states state department has asked switzerland t

this was the first time this message was relayed, but iran does not want them to fall to the kurdistan region because the kurdish bid for independence would be much stronger. i think iran knows how to meddle in the kurdistan. it has supported islamist groups that are radical in the sunni cents -- and sunni sense. it may do that again if it finds it necessary, but it says turkey is doing the heavy lifting. >> any questions from the press? >> once and ambassador to iraq. this is a question i tried out once before. in terms of a confrontation without predicting anything, if you look at it from the krg point of view, would they rather have a confrontation earlier? they look at the buildup of the security forces, they will get f-16's from the united states. isn't there -- could not at least be a strong incentive for the kurds to try to settle this even in a confrontation earlier rather than later when the iraqi military would be stronger? >> they definitely do want to settle this earlier but then later. they want to settle this early on, then they became very frustrated. they want to solve it as b

iran has long been suspicious of any activity in the border region, particularly the goings on in kurdistan. it has been used by militants to smuggle weapons and drugs across the border. even the cia had an outpost there to plot attacks against saddam hussein. i myself was picked up and arrested in that border region a few years ago while reporting there. i fortunate natalie was taken in by kurdish officials. the kurds are very pro-american. i was let go after just a few hours. the iranians would not have been nearly that forgiving. >> richard engel in istanbul for us tonight. >>> back in this country now, the obama administration is feeling increasingly bullish about the future of the american economy. but he's also now beginning to speak candidly about what all this is costing the country and now we're going to pay the bills. mike viqueira joins me from the white house. hi, mike. >> good evening, lester. the theed administration continues tout the good news. this morning a top administration official refused to rule out a tax hike to help to cover it. the president today returning to wash

it was near this waterfall in iraq's mountainous region of kurdistan where police say they last saw the young american tourists, shane bauer, sharon shourd and josh fattal were spotted by these kurdish policemen by a local camp last month. they bought tea from this vendor around 10:00 p.m. but while hiking on friday morning, july 31st, the local kurdish police chief told us they got lost. "these three did not have a guide or translator with them, he said. that's how i think they ventured into iran by mistake." but the americans were all seasons travelers. sarah and shane both extensive travelers in the middle east, yemen and ethiopia. iran has hinted the americans could be spies sent by the united states to stir unrest. they say not to expect any high-profile clinton-like intervention because iran would never allow it. >> richard engel, thanks. >>> a large wildfire is burning in santa barbara, california in a remote area of the wilderness. no buildings are being threatened. >>> in michigan, a strong storm uprooted huge trees and knocked them into homes and roads. >>> it is now 8:04. let

who were arrested in iran and those americans reportedly hiking to a lush mountainous region in iraq's northern kurdistanrnment is saying during the trip, the tourists either knowingly or unknowingly entered iranian territory. david piper that's the story from baghdad. >> reporter: there is still no word on the fate of the three u.s. tourists arrested by iranian border guards friday. state controlled iranian tv reported friday the three had been apprehended after crossing the border incurred tan and there has been no update since then. the last contact the tourists made was to a friend, presumably by phone in which they said they were surrounded. we spoke with kurdish security sources today but they say nothing has changed since the three disappeared. it is believed the tourists were staying at a hotel and had gone out to see a famous waterfall in the mountains, a state department spokesman has said the u.s. has asked the swiss to represent american interests in iran, to confirm the reports, and arrange diplomatic access to the three. iran's embassy here in baghdad has the not returned our calls today. w

region even today. i mean, i've personally been to northern pakistan and kurdistan and kazakhstan and northern india and i have some understanding of the state of development there. and 50 years ago, in appalachian in the united states, you know, we needed a rural electricfication administration so we could have light bulbs in those coal miner's houses down there. so the problems tibet had in terms of income and quality were not -- equality were not unique, they existed in a lot of the world. there were reform attempts that were being made and i think the tibetans might have succeeded on their own if the chinese had not pushed very hard, the communal policies under chairman mao. that was what really caused the reaction of the people, and you know, this is much like iraq. there are a lot of places that need reform, but not very many people like it at the point of a bay net and if you want to arouse people's patriotism and their nationalistic passions and their desire to defend their homes and their families and just march in with bay nets, that's all you have to do, you can be the u.s. you can have the b

region. two men and one women wandering across the border in iran's c d kurdistan province. not realizing they crossed the invisible line until the guards surrounded them. we'll update you as they come into the news room. a military family getting some closure today. the u.s. military found and identified the remains after pilot who disappeared 18 years ago. navy captain michael scott speicor was the first american loss in the 1991 persian gulf war. his plane was shot down the first night of the conflict. there was speculation he may have survived the landing and taken into captivity. thanks to tips from iraqi citizens and forensic tests the navy identified his remains and we're told he did not survive that crash ap was buried by locals. president george h.w. bush spoke about the then lieutenant commander during his 1992 state of the union. >> a few days after the war began, i received a telegram in joanne s pchpeicher, the wife oe first lieutenant killed in the gulf. even in her grief she wanted me to know that some day, when her children were old enough. she would tell the

region. there is a nse of tolerance. weave this rport. >> srtcards, a brand w road system, and the highes echnology. this ithe most progress in iraq. th is ecapital of kurdistan. some peopleall it "e other iraq." thisegion, even comparedith theest of the middle east, ands outn so many different ys. we d so many different ys. ♪ i have tralled extensely throughout the middleast. here, in kurstan, it is li western cotries. is there any comparison t america or rael? >>t is better that the imam ould not inspire hatred. our prophet says we shld not torate violce to others. >> islamic parties are united in campaign as one. >> we are all on the same common ground. >> aer the invasion of ira anin 2003, iraqi christians were attacke at churche throughout iraq. ♪ many christians escape the violence and und refuge here, inurdistan. >> jusa year agothis church was built to accmodate christians to esca persecution from cities like baghd and mosul. ristians from all over iraq have found peace and comfort here. >> i am from baghdad. i came here. i am worngn in this restaunt. >> he cristian quarter in the capital ty -- th business i thriving. ths jack niels. this costs almost

kurdistan on friday. officials say the two men and one woman were arrested near the border. their relatives say they strayed over the border accidentally while hiking in northern iraq. russian troops in the breakaway region of south acetia have heightened their state of battle readiness. the foreign ministry in moscow blames what it calls a series of provocations from georgia. a five-day war between russia and georgia started a year ago this coming friday. police in the afghan capital say insurgents have fired nine rockets into the city. the missiles landed across kabul, injuring two people. one landed in the diplomatic district close to western embassies and nato headquarters. australian police are saying they foiled a terrorist plot to attack an army base in sydney. four men were arrested in dawn raids across melbourne. they are said to have links to a somali militant group and their attention is raising concern that al qaeda supporters in africa are now seeking targets elsewhere. the bbc's nick bryant reports from sydney. >> in the quiet streets of melbourne's lace curtain suburbs, one of the biggest counterterrorism operations that australia has ever seen. the race got underway in the middle of the n

kurdistan, has been a safe area. and there's a burgeoning tourist industry. and it's been historically a very safe region. the kurdish tourist authority markets itself as the other iraq. this isn't the iraq that we're seeing otv every day, with all of the terrible bloodshed that's going on. this is really a beautiful area. and it's a great tourist area. >> and been considered safe. >> yeah. diane, they're meticulous travelers. they're always planning and they're careful. they got sim cards for their cell phones. typically, they're very careful where they are, what they're doing. >> and to go back to the border area. you've been told there's no markings in some region. they're wooden paths up in the hill there. it was impossible for them to know where they were? >> there's not a big sign saying, you're about to go into iran. there's nothing. >> the swiss government, the intermediary between the u.s. and iran. nothing from the swiss government? >> we're waiting. we got official confirmation that they're being held. that's something. we want to get -- we want to hear their voices. more than anything. >> and