9/27/01

LC010927

VAL>> I'M VAL ZAVALA.

JESS>> AND I'M JESS MARLOW.

THE PRESIDENT WANTS TO MAKE THE AIRLINES SAFER, BUT IN THE MEANTIME, LOTS OF TRAVELERS ARE KEEPING THEIR FEET ON THE GROUND.

GAY YEE>> THE PRESIDENT AND CONGRESS HAS PROMISED TO HELP. THE TRAVEL INDUSTRY IS LOSING MONEY AND JOBS AND THERE IS NO END IN SIGHT.

JOE MCCLURE>> THE TRAVEL INDUSTRY, OVERALL, IS HEMORRHAGING CASH IS WHAT YOU COULD SAY. THE AIRLINES ARE IN VERY DIRE STRAITS FINANCIALLY. WE HAVE BEEN HIT.

VAL>> THE ECONOMIC FALLOUT FROM THE TERRORIST CRISIS AFFECTS MORE THAN JUST THE TRAVEL BUSINESS. TONIGHT WE'LL HEAR FROM A LOCAL ECONOMIST WHO'S GOT A LONG LIST OF LOCAL INDUSTRIES THAT ARE STRUGGLING TO SURVIVE. IS LOS ANGELES HEADED FOR A RECESSION?

JESS>> WHILE AMERICA IS ON THE LOOKOUT FOR TERRORIST ATTACKS, PATT MORRISON SAYS WE SHOULD ALSO BE AWARE OF PEOPLE WHO WOULD TEAR OUR COUNTRY APART WITH WORDS.

PATT>> MIRROR, MIRROR, ON THE WALL, WHO'S THE REAL ENEMY WITHIN? ON TONIGHT'S INFINITELY MORRISON.

VAL>> AND ON THIS YOM KIPPUR, WE'LL LOOK BACK AT THE LIFE OF AN AMERICAN DIPLOMAT WHO RESCUED SCORES OF JEWS FROM CERTAIN DEATH AT THE HANDS OF THE NAZIS. HARRY BINGHAM HAD TO ACT ON HIS OWN, EVEN AGAINST THE U.S. GOVERNMENT, TO SAVE THE LIVES OF JEWS. TONIGHT WE'LL HEAR HOW BINGHAM OUTSMARTED HITLER.

JESS>> THESE STORIES ARE STRAIGHT AHEAD ON LIFE AND TIMES TONIGHT.

LIFE AND TIMES TONIGHT IS MADE POSSIBLE BY THE FOLLOWING FOUNDATIONS:

THE JAMES IRVINE FOUNDATION
WHICH IS DEDICATED TO THE DEVELOPMENT OF AN INFORMED CALIFORNIA CITIZENRY.

THE L.K. WHITTIER FOUNDATION
DEDICATED TO IMPROVING THE QUALITY OF LIFE BY SUPPORTING INNOVATIVE ENDEAVORS IN THE FIELDS OF MEDICINE, HEALTH, SCIENCE AND EDUCATION.

AND THE CALIFORNIA COMMUNITY FOUNDATION
UNDERWRITING THE SPANISH LANGUAGE TRANSLATION OF LIFE AND TIMES TONIGHT.

VAL>> GOOD EVENING, I'M VAL ZAVALA.

JESS>> AND I'M JESS MARLOW.

BY NOW YOU'VE PROBABLY HEARD PRESIDENT BUSH'S SWEEPING NEW SECURITY PLANS FOR THE NATION'S AIRPORTS AND COMMERCIAL AIRLINES, BUT WILL IT BE ENOUGH TO GET TRAVELERS BACK IN THE AIR?

VAL>> SINCE THE SEPTEMBER 11 ATTACKS, THE TRAVEL INDUSTRY HAS BEEN ON ITS LAST LEGS. AIRLINES AND CRUISELINES ARE GOING UNDER AND, HERE IN SOUTHERN CALIFORNIA, ONE OF AMERICA'S TOP TOURIST DESTINATIONS, BIG ATTRACTIONS ARE LOSING MILLIONS. TONIGHT GAY YEE REPORTS ON WHAT IT MAY TAKE TO GET THE PUBLIC IN A TRAVELING MOOD AGAIN.

GAY>> THE BURBANK AIRPORT USED TO BE A BUSY PLACE FRIDAY AFTERNOONS. CROWDS SPILLED OUT OF GATE SEATING AREAS ONTO THE FLOORS AND WALKWAYS, BUT THAT'S ALL HISTORY. THE BURBANK AIRPORT AND THE WORLD CHANGED AFTER SEPTEMBER 11 AND THE DEADLY TERRORIST ATTACKS.

MAHFOUZ DOSS>> IT'S A CATASTROPHIC THING THAT HAPPENED. IT'S TERRIBLE.

GAY>> MAHFOUZ DOSS IS A HEAVY TRAVELER. DOSS IS BOARD CHAIRMAN OF THE HOLLYWOOD FOREIGN PRESS ASSOCIATION. HE CHALKS UP 72,000 MILES A YEAR TRAVELING TO PREMIERES, FILM FESTIVALS AND JUNKETS ALL OVER THE WORLD. HE WAS AT ONE IN TORONTO THE DAY OF THE ATTACKS.

MAHFOUZ DOSS>> WE WERE STRANDED IN TORONTO FOR ABOUT SIX DAYS AND, WHEN WE CAME BACK, WE FOUND OUT THAT SOME JUNKETS WERE CANCELLED.

GAY>> THE TRAVEL INDUSTRY IS LOSING BILLIONS WORLDWIDE. DELTA, UNITED, AMERICAN, CONTINENTAL, US AIRWAYS. COMBINED, THE AIRLINES HAVE SLASHED 76,000 JOBS. MIDWAY AIRLINES WENT OUT OF BUSINESS TWO DAYS AFTER THE ATTACK. THIS WEEK, ANOTHER CASUALTY. RENAISSANCE CRUISES CEASED OPERATIONS AND FILED CHAPTER ELEVEN BANKRUPTCY. IT BLAMED TERRORISM AND A SEVERE DROP IN LEISURE TRAVEL.

MARIA SAENZ>> YOU KNOW, AIRLINES ARE GOING OUT OF BUSINESS. THIS IS THE FIRST CRUISELINE THAT'S BEEN HIT DUE TO CANCELLATIONS.

GAY>> TRAVEL AGENT, MARIA SAENZ, SAID EVEN BEFORE THIS TRAGEDY TRAVEL AGENCIES HAVE SUFFERED HEAVY BLOWS, ESPECIALLY THE SMALL MOM AND POP COMPANIES.

MARIA SAENZ>> MY GOD, THREE WEEKS BEFORE THIS ACTUALLY HAPPENED, THE AIRLINES HAD FINALLY COME ACROSS WITH A FINAL COMMISSION CAP HIT OF BASICALLY NOT PAYING US ANY COMMISSION ON AIRLINE TICKETS, AND THAT WAS A SERIES OF FIVE TIMES WITHIN A THREE-YEAR PERIOD WHERE THEY'RE TRYING TO TAKE AWAY OUR MONEY FOR PROVIDING THE SERVICE OF SELLING AIRLINE TICKETS FOR THEM.

JOE MCCLURE>> TRAVEL INDUSTRY, OVERALL, IS HEMORRHAGING CASH IS WHAT YOU COULD SAY. THE AIRLINES ARE IN VERY DIRE STRAITS FINANCIALLY.

GAY>> JOE MCCLURE IS THE OWNER OF MONTROSE TRAVEL, ONE OF THE LARGEST TRAVEL AGENCIES BASED IN L.A. COUNTY.

JOE MCCLURE>> WE HAVE BEEN HIT. PRIOR TO SEPTEMBER 11, FROM JANUARY 1 THROUGH SEPTEMBER 10, ON AVERAGE, WE WERE GENERATING ABOUT $35,000 A DAY WORTH OF COMMISSION INCOME. FROM SEPTEMBER 11 THROUGH SEPTEMBER 14, THAT DROPPED TO THE $5,000 RANGE, SO ABOUT AN 80 TO 85 PERCENT DROP IN THE FOUR FOLLOWING DAYS.

GAY>> BUT IN RECENT DAYS, SOME ENCOURAGING SIGNS.

>> HE'S LOOKING FOR LIKE JANUARY 11 TO JANUARY 19.

GAY>> 79 PERCENT OF MONTROSE'S BUSINESS IS BACK.

>> AND HAVE YOU BEEN TO KAUAI BEFORE?

MARIA SAENZ>> I'M SELLING A LOT OF TRAVEL BECAUSE THERE'S ENORMOUS DEALS GOING ON NOW, ESPECIALLY FOR NOVEMBER AND DECEMBER.

GAY>> SOME OF THIS MAY BE TEMPORARY AND SALES COULD DIP AGAIN, BUT MCCLURE SAYS THERE ARE CLEAR SIGNS PEOPLE ARE NOT ABANDONING TRAVEL, JUST POSTPONING IT. THE FOLKS AT MONTROSE TRAVEL SAY THE INDUSTRY WILL BOUNCE BACK. THEY SAY IT MAY TAKE AS MUCH AS A YEAR, BUT THE POINT IS, THERE WILL BE AN INDUSTRY STANDING. THE QUESTION IS, WHO AND HOW MANY?

JOE MCCLURE>> THERE HAS BEEN A PREDICTION BY THE CHAIRMAN OF THE CARNIVAL CORPORATION THAT UP TO FIVE CRUISELINES MAY NOT SURVIVE THIS AND THERE WILL BE A NUMBER OF AIRLINES THAT WILL NOT BE ABLE TO SURVIVE. SO WHETHER OR NOT THEY SURVIVE JUST WITHIN A CHAPTER ELEVEN BANKRUPTCY WHERE THEY'RE SIMPLY PROTECTED AGAINST PAYING THEIR BILLS IN THEIR DEBT VERSUS A CHAPTER SEVEN LIQUIDATION, I DON'T KNOW. BUT I DO BELIEVE THAT THERE WILL BE FURTHER AIRLINE BANKRUPTCIES IN ONE FORM OR ANOTHER.

GAY>> IN THE MEANTIME, MAHFOUZ DOSS SAYS HE HAS NO RESERVATIONS ABOUT STEPPING ON A PLANE AGAIN. HE FEELS FLYING WILL NOW BE SAFER THAN IT'S EVER BEEN.

JESS>> GAY JOINS US NOW. ACTUALLY, THE TICKET SALES HAVE INCREASED DRAMATICALLY IN THE LAST FEW DAYS.

GAY>> 79 PERCENT IN THE LAST FEW DAYS AND A LOT OF IT HAS TO DO WITH THE FACT THAT THERE ARE INCREDIBLE DEALS RIGHT NOW. SO MCCLURE FEELS THAT, YOU KNOW, WE'RE SEEING THIS SURGE RIGHT NOW BECAUSE THERE'S BEEN A PENT-UP NEED TOO. THERE WERE A LOT OF FLIGHTS THAT WERE CANCELED AND A LOT OF THESE BUSINESS PEOPLE HAVE TO BOOK THEIR FLIGHT. THEY STILL HAVE TO DO THEIR BUSINESS. SO HE THINKS THERE'S GOING TO BE A LITTLE BIT OF AN EBB AND FLOW, THAT'S IT UP NOW, IT'LL LEVEL OFF AT SIXTY AND THEN MAYBE COME BACK UP TO ABOUT EIGHTY PERCENT WITHIN A FEW MONTHS. BUT IT WILL TAKE ABOUT A YEAR TO TOTALLY RECOVER.

VAL>> WOW. BUT STILL, IN THE MEANTIME, YOU'RE TALKING ABOUT SOME SERIOUS BANKRUPTCIES AND BUSINESSES THAT WON'T BE ABLE TO SURVIVE THAT EBB AND FLOW.

GAY>> WELL, PART OF THE REASON IS, THERE HAVE BEEN SOME HEAVY HITS PRIOR TO THIS. WE'VE HAD A SOFT ECONOMY AND ONE OF THE BIG HITS IS THE FACT THAT A LOT OF THE BUSINESS TRAVELERS STARTED BECOMING GOOD CONSUMERS. BEFORE, THEY WOULD JUST BOOK A FLIGHT, TOP RATE, THAT WAS $2,000 TO GO TO, SAY, NEW YORK. THEN THEY DECIDED TO DO IT THE WAY BARGAIN HUNTERS DO AND WAIT 21 DAYS AND BOOK AHEAD AND STAY A SATURDAY NIGHT. SO THE AIRLINE INDUSTRIES REALLY RELIED ON THOSE HIGH-ROLLERS --

JESS>> -- WITH ALL THE THOUSANDS WHO'VE BEEN LAID OFF BY THE AIRLINE INDUSTRY, IF THERE IS THAT EBB AND FLOW, THEY'RE GOING TO BE VERY RELUCTANT TO CALL THOSE PEOPLE BACK RIGHT AWAY, AREN'T THEY?

GAY>> PERHAPS. IT'S HARD TO SAY. WE'LL HAVE TO SEE HOW MUCH THE FEDERAL GOVERNMENT KICKS IN AND HELPS OUT AND WHERE THAT MONEY WILL GO. THERE IS $5 BILLION DOLLARS THAT HOPEFULLY WILL HELP THINGS OUT, MAYBE ANOTHER $15 BILLION.

JESS>> THAT GOES TO THE AIRLINES, NOT TO THEIR LAID-OFF EMPLOYEES?

GAY>> PARDON?

JESS>> THAT GOES TO THE AIRLINES, NOT TO THEIR LAID-OFF EMPLOYEES.

GAY>> NOT THE LAID-OFF EMPLOYEES, NO. AND THERE ARE SOME BIG CHALLENGES TOO ABOUT LAYING THEM OFF IN THIS "WAR-LIKE" ATMOSPHERE AND THAT WILL BE CHALLENGED.

VAL>> RIGHT. AND THEN, OF COURSE, WILL THE BAILOUT HELP TRAVEL AGENCIES? WILL IT HELP HOTELS? OR WILL IT HELP JUST THE AIRLINES?

GAY>> CORRECT. THERE'S THIS HUGE TRICKLE-DOWN EFFECT.

VAL>> GAY, THANK YOU VERY MUCH FOR THAT REPORT.

TOMORROW ON LIFE AND TIMES, YOU'LL MEET THE OTHER L.A. MILLIONAIRE WHO WANTS TO BE GOVERNOR, AND WE DON'T MEAN FORMER MAYOR RICHARD RIORDAN.

AND COMING UP LATER, THE STORY OF A BRAVE AMERICAN WHO RESCUED JEWS FROM NAZI TERRITORY, EVEN WHEN THE U.S. GOVERNMENT WAS DOING NOTHING.

JESS>> THE TRAVEL INDUSTRY ABOUT WHICH WE WERE JUST TALKING ISN'T THE ONLY BUSINESS THAT'S BEEN HIT HARD IN THE WAKE OF AMERICA'S TERRORIST CRISIS.

VAL>> SOUTHERN CALIFORNIA IS STARTING TO FEEL THE PINCH ACROSS THE BOARD AND, AS LOCAL BUSINESSES START SCALING BACK, WILL IT DRAG L.A.'S ECONOMY FURTHER TOWARD RECESSION? ON THAT BRIGHT NOTE, WE'VE INVITED ECONOMIST, JACK KYSER, TO SHARE HIS PREDICTIONS. HE'S WITH THE L.A. COUNTY ECONOMIC DEVELOPMENT CORPORATION.

JESS>> YOU ARE NOT, AT THIS POINT IN TIME, RELUCTANT TO USE THE "R" WORD, RECESSION?

JACK KYSER>> NO. WE'RE SAYING THAT THE NATION IS IN A RECESSION, CALIFORNIA IS IN A RECESSION, SOUTHERN CALIFORNIA IS IN A RECESSION, AND IT'S PROBABLY GOING TO GET WORSE. THE FOURTH QUARTER WILL PROBABLY BE REALLY A TOUGH TIME, UNFORTUNATELY.

VAL>> NOW RECESSION ISN'T JUST AN ARBITRARY TERM. IT'S ACTUALLY DEFINED BY A SPECIFIC THING, YES?

JACK KYSER>> WELL, IN ECONOMIC TERMS, IT'S TWO CONSECUTIVE QUARTERS OF DECLINE IN GROSS PRODUCT. YOU DON'T HAVE A GROSS PRODUCT NUMBER FOR YOUR LOCAL ECONOMY. WE LOOK AT EMPLOYMENT NUMBERS AND WHAT WE'VE SEEN IS A VERY, VERY SHARP SLOWDOWN IN EMPLOYMENT GROWTH IN THE STATE AND IN SOUTHERN CALIFORNIA.

JESS>> THIS WOULD HAVE HAPPENED BEFORE THE EVENTS IN NEW YORK? THIS JUST EXAGGERATES IT?

JACK KYSER>> THIS JUST ACCELERATES IT, RIGHT. YOU HAVE TO SAY YOU WERE ON THE KNIFE EDGE. THERE WERE SIGNS THAT THE NATIONAL ECONOMY WAS STABILIZING. WE HAD SEVERAL PROBLEMS, BUT IT LOOKED LIKE THE NATIONAL ECONOMY WAS STABILIZING, THEN THIS EVENT CAME ON AND IT HAD HUGE RIPPLE IMPACTS. OF COURSE, PEOPLE LOOK AT THE TRAVEL INDUSTRY, BUT YOU HAVE WHAT WE CALL THE LOGISTICS INDUSTRY. ANYBODY THAT'S SHIPPING CARGO, THEY'RE HAVING A TOUGH TIME. PEOPLE IN THE LIFE INSURANCE INDUSTRY ARE NERVOUS.

VAL>> EXPLAIN THAT CONNECTION. LIFE INSURANCE, MEANING?

JACK KYSER>> BECAUSE THEY KNOW -- WELL, JUST INSURANCE, SOONER OR LATER, YOU'RE GOING TO HAVE TO PAY OFF THE CLAIMS --

VAL>> -- ALL THE CLAIMS THAT COME DIRECTLY FROM THE ATTACKS?

JACK KYSER>> FROM THE ATTACKS, YEAH, BECAUSE THERE ARE SOME VERY, VERY COMPLICATED ISSUES THERE. THEN EVEN THE MOVIE INDUSTRY IS STRUGGLING NOW AS A RESULT OF THE 11TH.

JESS>> AND THIS TRIGGERED ENORMOUS LAYOFFS TOO, AND THAT'S GOT TO DRAG THE ECONOMY DOWN EVEN FURTHER.

JACK KYSER>> OH, VERY DEFINITELY. THERE'S ABOUT 41,000 PEOPLE AT WORK IN THE AIRLINE INDUSTRY TO SUPPORT IN SOUTHERN CALIFORNIA. THEY'RE SAYING THAT 10,000 TO 12,000 WILL LOSE THEIR JOBS, SO THIS IS DEFINITELY --

VAL>> WOW. ABOUT A QUARTER OF THOSE 41,000?

JACK KYSER>> YEAH. THESE ARE AIRPORT SUPPORT AS WELL AS PEOPLE IN THE AIRLINE INDUSTRY, LIKE THE CATERERS THAT PREPARE THE AIRLINE FOOD. PEOPLE DON'T THINK ABOUT THAT, AND THE REDCAPS AND EVERYTHING, SO THERE IS A LOT OF RIPPLE IMPACT FROM THIS WHOLE THING.

JESS>> ONE OF THE THINGS THAT REALLY NICKS US IN SOUTHERN CALIFORNIA IS THE DECLINE IN TOURISM.

JACK KYSER>> OH, VERY DEFINITELY. THIS IS REALLY HURTING, ALTHOUGH YOU'RE SEEING PEOPLE FIGHT BACK. A LOT OF THE TOURIST ATTRACTIONS ARE STARTING TO ADVERTISE IN NEWSPAPERS AND ON RADIO TO TRAVEL LOCALLY. THEY THINK A LOT OF PEOPLE SAY THIS IS SOMETHING THAT WE HAVE TO DO. FIFTY-SIX PERCENT OF THE OVERNIGHT VISITORS TO L.A. DRIVE. IMAGINE THAT.

VAL>> FIFTY-SIX PERCENT OF -- OH, THEY DRIVE HERE. OKAY.

JACK KYSER>> YEAH, BUT THE INTERNATIONAL, WHICH IS WHAT YOU CALL THE CREAM, THAT HAS JUST COMPLETELY COME TO A HALT. TWENTY-TWO PERCENT OF THE OVERNIGHT VISITORS INTERNATIONAL, BUT THEY ACCOUNT FOR THIRTY PERCENT OF THE SPENDING.

JESS>> THERE WAS SOME TALK THAT THE MOVIE INDUSTRY MIGHT, THAT THE LOCAL MOVIE INDUSTRY, MIGHT BENEFIT FROM THE FACT THAT THEY WEREN'T GOING TO EXOTIC FOREIGN LOCALES TO FILM NOW AND THAT MIGHT BE HELPFUL, BUT THAT'S A DROP IN THE BUCKET, I SUSPECT.

JACK KYSER>> WELL, YOU LOOK AT THE TRADE PAPERS AND THEY SAY HOLLYWOOD DOESN'T KNOW WHAT TO PRODUCE. THEY'RE VERY SENSITIVE TO WHAT THE MOOD OF THE CONSUMER IS. YOU HAVE SEVERAL FILMS THAT HAVE LITERALLY BEEN PUT ON THE SHELF. WHAT THEY CALLED THE GREEN LIGHT FOR PRODUCTION WAS ACTUALLY A RED LIGHT BECAUSE THEY DIDN'T KNOW WHAT TO PRODUCE. BUT IRONICALLY, BOX OFFICE IS UP TEN PERCENT OVER THE YEAR, SO THEY'RE MAKING MONEY --

VAL>> OH, OVER THE YEAR.

JACK KYSER>> OVER THE YEAR, BUT THIS IS AT THE THEATERS. IT'S NOT WHAT'S HAPPENING IN HOLLYWOOD BECAUSE YOU HAVE THE RUSH IN PRODUCTION.

VAL>> THAT'S INTERESTING. SO HOLLYWOOD LITERALLY DOES NOT KNOW WHAT KIND OF MOVIES TO PRODUCE, SO IT'S PUTTING A LOT OF THEM ON HOLD.

JACK KYSER>> YEAH, THEY'RE VERY, VERY SENSITIVE. YOU KNOW, IT'S FUNNY. YOU PICK UP THE LITTLE SUBTLE INDICATORS WHEN SOMEBODY WAS REVIEWING THE OPENING SHOW OF "WILL AND GRACE" AND SAID THIS IS SORT OF, YOU KNOW, TRIVIAL. I DON'T THINK I LIKE THIS ANY MORE. AND IT WAS A HOT SHOW LAST YEAR.

VAL>> WELL, IT IS KIND OF FUNNY BECAUSE THEY'RE NOT GOING TO DO THE LIVE ACTION-PACKED VIOLENT MOVIES BECAUSE THAT SEEMS OUT OF SYNCH AND YOU CAN'T DO ANYTHING TOO LIGHT AND COMEDIC EITHER, SO THEY ARE KIND OF CAUGHT IN THE MIDDLE.

JACK KYSER>> YEAH. YOU SORT OF GO BACK TO WORLD WAR II AND YOU HAD A LOT OF FAMILY VALUE FILMS, BUT ALSO YOU DID HAVE SOME COMEDIES OUT THERE. I THINK THAT'S AN IMPORTANT THING. WE HAVE TO SORT OF GET OUR SENSE OF HUMOR BACK. WE'VE HAD A TERRIBLE TRAGEDY, BUT THE BEST THING FOR US IS TO GET THAT SENSE OF HUMOR BACK. YOU DO SEE SIGNS OF THAT STARTING TO SURFACE.

JESS>> ANY THINKING ON HOW LONG IT WILL TAKE?

JACK KYSER>> WELL, WE'RE SAYING PROBABLY ABOUT THE MIDDLE OF 2002, YOU'RE GOING TO START TO SEE SOME SOLID SIGNS --

VAL>> -- OF RECOVERY?

JACK KYSER>> OF RECOVERY. ONE IMPORTANT THING IS, AT LEAST IN SOUTHERN CALIFORNIA, WE ARE BETTER ORGANIZED AND THERE ARE SOME INDUSTRIES OBVIOUSLY THAT ARE GOING TO BENEFIT, LIKE TECHNOLOGY. THERE ARE SOME BUSINESSES THAT ARE SAYING, WELL, WE DON'T WANT TO SOURCE AS MUCH OVERSEAS BECAUSE OUR PEOPLE DON'T WANT TO TRAVEL, SO THEY'RE GOING TO START TO PULL BACK SOME PRODUCTION MAYBE FROM OVERSEAS.

BUT WE'RE STARTING TO PUT TOGETHER WHAT WE CALL OUR ECONOMIC RECOVERY PLAN AND WE'RE GOING TO HAVE AN ECONOMIC SUMMIT THAT'S CONVENED BY THE BOARD OF SUPERVISORS. MUCH DIFFERENT THAN THE EARLY 1990'S WHEN WE WERE SORT OF LIKE CLUELESS.

VAL>> BUT WHAT IF ANOTHER ATTACK HAPPENS OR IF WE REALLY SCALE UP AND ARE AT WAR, ACTIVELY MILITARILY? WILL THAT IMPACT THINGS?

JACK KYSER>> THOSE ARE WILD CARDS. OBVIOUSLY, IF THERE IS ANOTHER TERRORIST ATTACK, THAT WOULD REALLY SCARE PEOPLE. THEN I THINK EVERYBODY WAS EXPECTING SOME TYPE OF A MILITARY ACTION. YOU HAVEN'T HAD IT. BUT, OF COURSE, WHERE DO YOU ATTACK? SO JUST A LOT OF WILD CARDS OUT THERE AND YOU GO BEYOND BEING AN ECONOMIST. YOU'RE TRYING TO BE A PSYCHOLOGIST AND SAYING WHAT IS THE CONSUMER THINKING? WHAT IS THE BUSINESS PERSON THINKING?

JESS>> CALIFORNIA ECONOMY DEPENDS A GOOD BIT, TOO, ON FOREIGN TRADE. HOW HAS THAT BEEN AFFECTED BY THE DOWNTURN?

JACK KYSER>> WELL, FOREIGN TRADE WAS DRAGGING. LAST YEAR IT WAS A REAL TREMENDOUS SOURCE OF STRENGTH FOR THE CALIFORNIA ECONOMY. THIS YEAR, IN SOUTHERN CALIFORNIA, IT'S ABOUT EVEN. YOU GO TO THE BAY AREA, TECH CRASH, AND IT'S WAY DOWN. SO FOREIGN TRADE IS NOT THE SUPPORT TO THE ECONOMY THAT WE USED TO HAVE.

JESS>> BUT THE TECH DECLINE WAS HAPPENING BEFORE THE WORLD TRADE CENTER.

JACK KYSER>> OH, YEAH. TECH DECLINE WAS GOING ON BEFORE. THEN, OF COURSE, YOU HAD THE PROBLEMS IN THE U.S. FEEDBACK TO ASIA, TO JAPAN AND TO TAIWAN. EVEN CHINA IS SUFFERING A LITTLE BIT BECAUSE THEY HAVE BEEN INTEGRATED INTO THE DEVELOPED ECONOMY. IT'S FASCINATING TO WATCH ALL THESE LITTLE CURRENTS FLOWING.

VAL>> IN OUR LAST THIRTY SECONDS OR SO, IS CALIFORNIA EITHER MORE RESILIENT OR MORE VULNERABLE IN ANY WAY, GIVEN OUR STRENGTH AND THE SIZE OF OUR ECONOMY?

JACK KYSER>> YOU HAVE TO SAY MAYBE WE HAVE A LITTLE BIT MORE RESILIENCE BECAUSE WE DO HAVE THE DIVERSE ECONOMY. WHAT WE HAVE TO DO IS BE STRATEGIC AND THINK OF THINGS THAT WE CAN DO TO HELP THE PEOPLE THAT LOSE THEIR JOBS AND TO HELP INDUSTRIES.

VAL>> JACK KYSER, THANK YOU SO MUCH FOR COMING IN AND SHARING THOSE WORDS WITH US. IT'S ALWAYS A PLEASURE.

JACK KYSER>> THANK YOU.

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JESS>> PATT MORRISON'S BEEN THINKING ABOUT THREATS TO AMERICA'S SECURITY AND SHE IS DETERMINED TERRORISTS AREN'T THE ONLY PEOPLE WE SHOULD BE WORRIED ABOUT. IT'S TONIGHT'S INFINITELY MORRISON.

PATT>> .... MURDEROUSLY IMPORTED TO THESE SHORES, LEAVE ROOM FOR SOME CONCERN ABOUT THE HOMEGROWN HATE THAT HAS BEEN FLOURISHING FOR SOME TIME. TEN DAYS AFTER THE WORLD TRADE CENTER AND PENTAGON ATTACKS, A NEW NAME WENT ON THE FBI'S TEN MOST WANTED LIST, AN ALL-AMERICAN NAME, CLAYTON LEE WAGNER. WAGNER ESCAPED FROM JAIL WHILE AWAITING SENTENCING FOR FEDERAL CRIMES. HE SAID HE IS ON A MISSION FROM GOD TO KILL PEOPLE WHO PERFORM ABORTIONS.

A MISSION FROM GOD. NOW WHERE HAVE WE HEARD THAT LATELY? THE OKLAHOMA CITY BOMBING, AT FIRST BLAMED ON MIDDLE EASTERN TERRORISTS, WAS THE HANDIWORK OF TIMOTHY MCVEIGH, A U.S. ARMY TANK GUNNER FROM THE GULF WAR. AND IN A SWITCHEROO, TWO DAYS AFTER THE SEPTEMBER 11 ATTACKS MOUNTED BY MIDDLE EASTERN TERRORISTS, TWO FAMOUS TELEVANGELISTS WERE ALSO BLAMING AMERICANS.

ON PAT ROBERTSON'S NATIONAL TV SHOW, JERRY FALWELL SAID THAT "GOD CONTINUES TO LIFT THE CURTAIN AND ALLOW THE ENEMIES OF AMERICA TO GIVE US PROBABLY WHAT WE DESERVE." THEN HE BLAMED "THE PAGANS AND THE ABORTIONISTS AND THE FEMINISTS AND THE GAYS AND THE LESBIANS, THE ACLU, PEOPLE FOR THE AMERICAN WAY. I POINT THE FINGER IN THEIR FACE AND SAY YOU HELPED THIS HAPPEN." PAT ROBERTSON SAID, "I TOTALLY CONCUR."

EVEN PRESIDENT GEORGE W. BUSH, WHO CAME INTO OFFICE WITH THE SUPPORT OF THE RELIGIOUS RIGHT, DECLARED THAT HE DOES NOT SHARE THOSE VIEWS. FALWELL BACKED DOWN, BUT HIS RETREAT WAS CAREFULLY COUCHED. HERE'S WHAT HE SAID: "THIS WAS INSENSITIVE, UNCALLED FOR AT THE TIME AND UNNECESSARY AS PART OF THE COMMENTARY ON THIS DESTRUCTION." IN SHORT, HE DID NOT RETRACT HIS COMMENTS, BUT ONLY SAID THAT HIS TIMING STANK.

ONE IRONY HAS TO DO WITH PASSENGERS ABOARD FLIGHT 93. SOME OF THEM EVIDENTLY ATTACKED THE HIJACKERS AND THWARTED THEIR INTENT, SENDING THE PLANE CRASHING INTO A FIELD IN PENNSYLVANIA INSTEAD OF A MARBLE MONUMENT IN WASHINGTON. CONGRESS IS CONSIDERING AWARDING THOSE PASSENGERS THE MEDAL OF FREEDOM. ONE WAS A CALIFORNIAN NAMED MARK BINGHAM. HE STOOD SIX FEET FIVE, A PHYSICALLY FEARLESS MAN WHO RAN WITH THE BULLS IN PAMPLONA AND YET THIS MAN, ON THE LIST FOR NATIONAL HONORS, WAS ALSO ON JERRY FALWELL'S LIST OF THE CULPABLE, BECAUSE MARK BINGHAM WAS GAY.

VAL>> SEVERAL YEARS AGO, STEPHEN SPIELBERG MADE A MOVIE CALLED "SCHINDLER'S LIST". IT WAS ABOUT A GERMAN FACTORY OWNER WHO SAVED SCORES OF JEWS FROM CERTAIN DEATH AT THE HANDS OF THE NAZIS.

JESS>> BUT YOU MAY NOT HAVE HEARD THE STORY ABOUT A BRAVE AMERICAN DIPLOMAT WHO ALSO RESCUED JEWS FROM THE HITLER REGIME. HIS NAME WAS HARRY BINGHAM. HE WAS A U.S. DIPLOMAT STATIONED IN FRANCE DURING THE NAZI OCCUPATION. HITLER HAD TARGETED INTELLECTUALS, SCIENTISTS, ARTISTS FOR EXECUTION. HARRY BINGHAM PUT HIS CAREER ON THE LINE TO HELP THEM ESCAPE. TONIGHT, ON THE JEWISH HOLIDAY OF YOM KIPPUR, WE'RE JOINED BY BINGHAM'S SON, BILL. HE'S HERE TO TELL HIS DAD'S REMARKABLE STORY.

THERE IS A BINGHAM'S LIST, THEN?

BILL BINGHAM>> THERE WAS A LIST THAT MY FATHER HAD THAT HE RECEIVED FROM THE STATE DEPARTMENT, PEOPLE WHO COULD GET EMERGENCY VISAS, BUT THE PROBLEM WASN'T GETTING VISAS. THE PROBLEM WAS, THEY COULDN'T GET OUT OF NAZI-OCCUPIED FRANCE, SO THEY HAD TO SMUGGLE THEM OUT. ARTISTS, WRITERS, ANTI-FASCISTS, POLITICAL ACTIVISTS, UNION ACTIVISTS. AND THE PROBLEM WAS THAT THE STATE DEPARTMENT SAID YOU CANNOT HELP BREAK THE LAWS OF FRANCE BECAUSE WE ARE NOT AT WAR WITH HITLER.

VAL>> SO THE OFFICIAL U.S. STATE DEPARTMENT LINE WAS "DO NOT HELP JEWS ESCAPE FROM NAZI-OCCUPIED FRANCE"?

BILL BINGHAM>> AND OTHERS. PEOPLE WHO WERE WANTED BY THE NAZIS. YOU CANNOT HELP THEM ESCAPE. THEY GOT AN INITIAL GROUP OUT, INCLUDING LION FEUCHTWANGER OF THE WONDERFUL FEUCHTWANGER INSTITUTE HERE IN L.A., AND FRANZ WERFEL WHO WROTE "THE SONG OF BERNADETTE", THOMAS MANN'S BROTHER AND SON AND SISTER-IN-LAW.

A NUMBER OF PEOPLE GOT OUT AND THE NAZIS WIRED THE STATE DEPARTMENT IN WASHINGTON AND SAID SOMEBODY'S HELPING PEOPLE GET OUT OF THE COUNTRY. YOU'VE GOT TO STOP IT. SO THEY ISSUED AN ORDER THAT WEEK SAYING YOU MAY NOT ASSIST IN ANY ILLEGAL ACTIVITIES.

MY FATHER WAS ALREADY UP TO HIS NECK IN PARTICIPATING WITH A NUMBER OF PEOPLE HE HAD HELPED GET PEOPLE OUT OF SOME CONCENTRATION CAMPS. FEUCHTWANGER WAS DISGUISED AS A WOMAN AND HIDDEN AT HIS HOME FOR ABOUT SIX WEEKS WHILE THEY MADE THE PLANS. AND HE WAS DEEPLY INVOLVED WITH THE JEWISH UNDERGROUND AND FRENCH RESISTANCE MOVEMENT.

JESS>> WHAT MANY PEOPLE DON'T RECOGNIZE AND THE QUESTION IS ALWAYS ASKED, YOUR FAMILY'S NOT JEWISH, YOU'RE DESCRIBED AS CONNECTICUT WASPS?

BILL BINGHAM>> WELL, YES, HE WAS THE SON OF HIRAM BINGHAM, THE EXPLORER, WHO WAS ALSO A U.S. SENATOR. THERE WERE ANTI-SEMITES, I THINK, EVEN IN OUR OWN FAMILY, AND THERE WAS TREMENDOUS PRESSURE. BUT HE WAS A VERY SPIRITUAL MAN. HE HAD BEEN STATIONED IN JAPAN AND CHINA, HAD STUDIED BUDDHISM, HE WAS INTO MYSTICAL CHRISTIANITY, BELIEVED IN -- HE BELIEVED GOD PUTS US HERE FOR A REASON, WHICH IS ONE REASON THAT I CAME TODAY FOR THE YOM KIPPUR SERVICE.

VAL>> AND WE'RE GOING TO LEARN A LITTLE BIT MORE ABOUT HIM THROUGH THIS CLIP FROM THE HISTORY CHANNEL DOCUMENTARY THAT FOCUSED IN PART ON YOUR FATHER, HARRY BINGHAM. HERE IT IS.

[FILM CLIP]>> "HIRAM BINGHAM IV IS STILL IN THIS THIRTIES WHEN ASSIGNED AS AMERICAN VICE CONSUL IN MARSEILLE. THE SON OF A CONNECTICUT SENATOR, HE'S ATTRACTED, AS ARE MANY FELLOW GRADUATES OF YALE, TO A CAREER IN THE FOREIGN SERVICE. IT OFFERS THE GLAMOUR, TRAVEL AND PRESTIGE NOT FOUND IN BANKING OR THE LAW.

BINGHAM, THE FATHER OF SEVERAL YOUNG CHILDREN -- HE AND HIS WIFE WILL EVENTUALLY PRODUCE ELEVEN -- IS REVOLTED BY THE HUMAN TRAGEDY HITLER HAS CREATED. IN THE SUMMER OF 1940, HE FINDS HIMSELF AN IMPOTENT ONLOOKER AS REFUGEE FAMILIES SEEK AID FROM THE AMERICAN CONSULATE. THE UNITED STATES, NOT YET DRAWN INTO THE WAR, WON'T ALTER ITS TOKEN QUOTA POLICY.

HITLER HAS CIRCULATED A LIST OF THE MOST WANTED ARTISTS, INTELLECTUALS AND SCIENTISTS WHO OPPOSED HIS RISE TO POWER.

ERIC HALL>> THERE WAS A COMMUNIQUE FROM CORDELL HULL SAYING UNDER NO CIRCUMSTANCES TO HELP THE REFUGEES IN SOUTHERN FRANCE. CONSUL GENERAL, HUGH FULLERTON, BASICALLY WAS AGAINST IT AND WARNED BINGHAM ON A NUMBER OF OCCASIONS NOT TO GET CAUGHT UP IN THE WEB OF RESCUING JEWS.

WILLIAM BINGHAM>> HIS SOCIAL PEER GROUP DURING THIS PERIOD OF THE RESCUES WERE SENDING HIM THESE AWFUL LETTERS, SAYING, OH, WE HOPE YOU DON'T RESCUE TOO MANY MORE BECAUSE THEY SMELLED BAD WHEN WE WERE COMING OVER ON THE BOAT. I THINK ONE EXPRESSION THAT I READ WAS 'YOU'RE HELPING ALL THESE PEOPLE GET TO JEW YORK'."

JESS>> WHEN DID U.S. POLICY CHANGE?

BILL BINGHAM>> I THINK LATER ON IN THE WAR, IN THE LATER PART OF THE -- ACTUALLY THE POLICY GOT MORE RESTRICTED. MY FATHER TRIED TO HELP LOBBY WITH THE REFUGEE GROUPS FOR MORE OPEN POLICY AND IT BECAME MORE RESTRICTED.

THE INTERESTING THING ABOUT THIS STORY FROM A HUMAN INTEREST POINT OF VIEW IS THAT MY FATHER KEPT THIS A SECRET FROM US. I DIDN'T DISCOVER HIS PAPERS UNTIL 1996. A SURVIVOR CONTACTED MY FAMILY LOOKING FOR MY FATHER AND SAID, YOU KNOW, DO YOU HAVE ANY INFORMATION? I BEGAN RESEARCHING THIS STORY AND HE WORKED WITH VARIAN FRY. THERE'S A FILM COMING OUT THAT PIERRE SAUVAGE IS DOING CALLED "AND CROWN THY GOOD" BY VARIAN FRY, THE ONLY AMERICAN HONORED BY YAD VASHEM, BY ISRAEL, FOR RESCUING JEWS.

MY FATHER WORKED WITH HIM, BUT HE KEPT THE STORY A SECRET AND WE DIDN'T DISCOVER IT UNTIL AFTER HE -- I DISCOVERED IT. I'M A WRITER AND A JOURNALIST AND AN ATTORNEY, HUMAN RIGHTS ATTORNEY, AND I DID RESEARCH ON THIS. I BEGAN LOOKING FOR THE PAPERS AND I DISCOVERED THIS CACHE OF DOCUMENTS THAT HE HAD HIDDEN AWAY BECAUSE HE WAS AFRAID OF REPERCUSSIONS.

VAL>> WE'RE GOING TO TAKE A LOOK AT SOME OF THE EXTRAORDINARY PEOPLE YOUR FATHER HELPED SAVE. HERE IT IS.

[FILM CLIP]>> "PROMINENT JEWISH AND NON-JEWISH ENEMIES OF HITLER HAVE REACHED SAFETY IN AMERICA. AMONG THEM, WORLD-RENOWNED ARTIST, MARC CHAGALL; MARCEL DUCHAMP; FRANZ WERFEL, AUTHOR OF THE BEST-SELLING "THE SONG OF BERNADETTE"; RELATIVES OF NOBEL PRIZE WINNER, THOMAS MANN, ALREADY IN CALIFORNIA; OTTO MEYERHOF, NOBEL LAUREATE IN PHYSIOLOGY. FAKE AND FORGED PAPERS, BRIBES AND OFTEN DARING STRATEGIES AT ESCAPE ROUTES ARE ALL PART OF THE DEADLY GAME TO RESCUE SEVERAL THOUSAND REFUGEES."

JESS>> WHAT WAS YOUR FATHER'S PUNISHMENT FOR DEFYING THE STATE DEPARTMENT?

BILL BINGHAM>> WELL, HE WAS TRANSFERRED TO ARGENTINA WHERE, AT THE END OF THE WAR, HE DISCOVERED THAT NAZI ASSETS WERE COMING TO LATIN AMERICA. HE, AT THAT TIME, WENT TO WASHINGTON TO ARGUE THAT THERE SHOULD BE AN INTERNATIONAL FORCE TO GO AFTER THESE TERRORISTS WHO HAD COME FROM EUROPE AND WERE GOING TO ARGENTINA. THEY WERE GOING BY SUBMARINE, THEY WERE OFFLOADING GOLD AND WAR CRIMINALS. HE RESIGNED IN PROTEST WHEN THE STATE DEPARTMENT FAILED TO ACT.

VAL>> BILL BINGHAM, THANK YOU SO MUCH FOR BRINGING YOUR STORY TO US.

BILL BINGHAM>> THANK YOU FOR HAVING ME.

JESS>> ALSO, OUR THANKS TO RABBI DAVID BARON, LEE ORGELL AND TEMPLE SHALOM FOR THE ARTS FOR THEIR HELP.

VAL>> THAT'S OUR PROGRAM FOR THIS EVENING. FOR ALL OF US HERE AT LIFE AND TIMES TONIGHT, HAVE A WONDERFUL EVENING.

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