>> this is the "journal" on dw- tv. coming up, the german chancellor marks the 20-year anniversary of the unification treaty, the document that enters its fourth decade in division. -- ended four decades of division. new rules on child sex abuse, and the u.s. formally ends operations in iraq. chancellor angela merkel fears

east german braverynd th country's unification set an example for the world, marking the moment that the treaty was signed two decades ago, she praised the role of civil rights activists and those who escaped the regime. the german leader grew up in the east and says it is now germany's responsibility to fight globally for freedom. >> the original unification treaty was presented to today's chancellor to commemorate its signing in the same room 20 years ago. angela merkel, who grow up in east germany, was joined ere byany politicns iolved in the deal. the interior met -- for the then interim minister, signing the treaty was the high point of his career. >> we left the room together for a moment, and then we simply cried because we were moved, exhausted, and overjoyed. >> it took just 23 minutes to end four decades of communist east german rule.

unification had previously been approved by east germany's parliament. chancellor merkel was present at the proedings 20 years ago. she called on germans to do more for other nations in their struggles for freedom. >> i'm concerned that now we have more less achieved our own visions, our enthusiasm may be flagging when it comes to helping others accomplish their dreams of living in freedom and democracy. the chancellor praised the role of the east german people in helping bring down the communist regime. their bravery, she said, was far greatethan c bemagined t decades on.z% >> later, we will be looking at how life has changed for people in east germany since unification. germany's catholic church has unveiled new guidelines for cases of child sex abuse. the measures are in response to a wave of alleged cover-ups earlier this year. church authorities but the

bishop of trieste in charge of reviewing the legislation. under the new rules, all allegations of abuse must be reformed, unless the alleged victim objects. the regulations began when four peoples of the catholic high school in berlin came forward, saying they had been abused -- former pupils of a catholic high school in berlin came forward. john, tell us what sort of differences do you think these changes are going to actually make. >> there is a range of measures, actually, in these new regulations, which are intended to prevent cases of child abuse occurring. it is difficult to see how effective they are going to be. obviously the intention is good. theaspect thais going to be grabbing headlines in germany in tomorrow's this papers will be the fact that the german newspapers have committed themselves in all 27 diocese to contact the police to report

cases of child abuse to the police as soon as there is a reasonable suspicion that child abuse has taken place, with the sole exception, they say, and this should be a rare exception -- if the victim himself or herself insists upon the police not being informed. that is very unusual, particarlyinceany people do not realize there is no legal obligation whatsoever for anyone to report a case of sexual abuse. this is a particular restraint the church is voluntarily placing on itself. >> i have spoken myself to a lot of child sex abuse victims, especially in the church, and would you think this puts a lot of all this on the victim? >> yes, you mean that from the point of view that finally won the decision is on the weather should be reported to the police? yes, it does, and that is a regrettable aspect. i ink most pple see that. on the other hand, we know statistically that groups of

psychologists tell us at least in germany that the majority of victims of sexual abuse -- that includes women, rape victims -- choose not to press charges. it places a victim, of course, under tremendous pressure to have to go through after having a painful psychological experience, to have to go through the experience of repeating that periods of the church as well as the civil authorities are reluctant to force somebody to do that against their will. >> thank you very muchor cong in. in other news, four israelis have been killed in a shooting in the west bank two days before a new round of peace talks start in washington. civilians were driving along a busy highway near a jewish settlement. the armed wing of the palestinian group hamas has issued a statement claiming responsibility for the attack. the prime minister and palestinian leader are due to begin talks with barack obama on thursday.

iraq's prime minister says the countris w a sovereig nation after the in the ad states formally ended its combat operations there -- after the united states formally ended its combat operations there. it was launched seven and a half years ago by barack obama's predecessor with the stated aim of destroying iraq's weapons of mass destruction, weapons that were never found. >> these u.s. soldiers are packing up. for them, the dangerous mission in iraq is over. they will be heading home after completing a fin insctionat a ca in italy. >> i'm excited to go back to the states, you know? i'm excited to go back and see my family and everything. >> visiting war veterans in texas, president obama said much remains to be done in iraq, but he said the country had made enormous strides, thanks to their sacrifices. >> because of the extraordinary service that all of you have done and so many people here at

fort bliss have done, iraq has an opportunity to create a better future for itself. >> iraqi security forces are now officially on their own on street patrols and checkpoints. there is no u.s. soldier in sight. u.s. vice president joe biden was in baghdad to preside over the formal end to the u.s. combat mission. iraq's prime minister called it an historic day. >> today, iraq is sovereign and independent with full ownership of its decisions and everything related to its present and future. august 31 will remain an immortal day shares by the iraqi people. -- cherished by the iraqi people. >> 50,000 troops remain focusing on trading the military, but they will still accompany forces on patrols and on high-risk missions. washington's current plan

foresees a final withdrawal at the end of next year. >> rescue workers in chilly have begun work on an escape shaft with 33 miners trapped underground. they began drilling a test hole on thursday with a special drill had flown in from germany. officials say could take up to four months to reach the miners, who were found more than a week ago 700 meters below the surface. they have been trapped for a total of 26 days, a record in recent mining history. for some good news now, steve is here with the latest in unemployment figures. and a continued improvement on the job market. the german economy created more jobs in august. they had a released tuesday by the federal unemployment agency, showing unemployment fell in august to its lowest level since november 2008, adding to evidence that germany'sexpo le economy is outperforming its peers. policymakers are now hoping that german consumers will spend more to make domestic consumption another strong pillar supporting

the rebound in europe's biggest economy. >> anyone looking for a drop in germany at the moment has pretty good chances of finding one -- looking for a job in germany at the moment has pretty good chances at the moment. german companies are hiring again, even during the traditionally slow month of august 1 summer holidays are in full spring. figures reased on tuesy p the number of jobless at 3,180,000, 4000 fewer than in the previous month. the unemployment rate remains at 7.6%. compared to august 2009, some 280,000 fewer people were out of a job this year. with the expected seasonal boost as autumn approaches, the german government is optimistic. >> there is a good chance that unemployment numbers will drop below 3 million, and i believe in the long run, if no immediatel we might be ab to move towards full employment.

that demographic changes could help to reach that goal. the german population is getting older, and the birthrate is decreasing. as a result, the working population is dwindling, easing competition on the labor market. >> taking a look at tuesday's market action now, and after a fairly weak start to the day, most european markets were able to bounce back and finish higher. after getting a bit of help from batcof enomic dataut of the united states. our correspondence sent us this summary of the day's trading from frankfurt. >> how is the situation of the economy in the u.s.? this is the most important question for the german stock market, and this is dominating trading in frankfurt. although traders are pleased about positive german economic data, the data has not much influence on the german markets. on the better than expected consumer confidence in the u.s. could change for the better. but the summer is really gloomy. in august, the germanax was

pushed dn fearsf recession in the u.s., so this august was one of the biggest trading months. >> we can stay for a closer look at tuesday's numbers, and the blue-chip dax index closing down by 0.2% at 5925. euro stocks 50 also ending the day up, rather, at 2622. across the atlantic, the dow trading fairly flat, closing at 10,014 points, and on currency markets, the year of trading at a value of $1.2679. -- t euro trading at. the door to a bond trader and head of friends met to discuss competition and progress on privatisation. according to eu law, the rail sectors should be completely liberalized by now in both nations, but in reality, those plans have gotten a little bit off track.

>> this german i.c.e. is from sugar, and france will take passengers in the other direction. three years ago, deutsche a bond joined forces with its french counterpart to provide high- speed service between the two countries, but the joint venture is now threatening to derail. the french accused the germans are only paying lip service to liberalization. they also complain that a door to a bond subsidiary and not a neutral body divides routes between competitors. the germans accused sncf of maintaining a monopoly dostic ssenger tvel, while running passenger services in germany through a subsidiary. deutsche upon urgently wants to resolve the conflicts, so it can test its high-speed ice 3 on the title bout between paris and london, but that would challenge

the french monopoly and the french blocked deutsche a bond was last at 10, saying the german high-speed train was 25 meters short of the required length. >> european media companies say they are benefiting from a covering mart for adveising. among them is a corporation in germany reporting profits of about 250 million euros for the first half of the year, following losses the same time last year. advertising funded media companies are enjoying a rebound. the bottom line has also been boosted by deep cuts in operating costs. that has increased its profit forecast for the full year. inranc and luxury goods maker says first half profits jumped by 55% to 195 million years, but luxury goods market is apparently also on the mend after suffering through one of

its toughest years ever in 2009. hermes says top sellers were its signature leather handbags, which could sell for thousands of years of peace. sales of high-priced excess -- increasingly prosperous buyers from emerging markets in asia, africa, and south america were also an important factor. that is your business update. >> france has defended its deportation of role in assisting it is in line with european laws. two french ministers were in brussels on tuesday to discuss the issue with eu officials. the european commission has criticized the deportations, saying all eu cizens have the right of freedom of movement. so far this year, france has deported over 8000 migrants to romania and bulgaria. >> a group of roma are waiting for their flight. they are being deported by the government, despite the fact

that they are you citizens. european commission have expressed concern over the policy. >> each person needs to be treated equally under eu law. there is absolutely no justification for mass expulsions. >> france has sent more than 8000 to romania and bulgaria. leading european commission officials in brussels on tuesday, the french immigration minister defended the crackdown. he said france's actions had been unacceptably caricatured and insisted paris had been scrupulously respecting eu laws regarding rights like freedom of movement. >> freedom of movement is also a source of duty, not representing an unreasonable burden on the system of social security. >> the european union says it needs more information before it can determine whether france is failing to comply with eu laws.

>> tthe ited states ere residents of the eascoast are preparing for hurricane earl. after crossing the caribbean, the storm is expected to brush north carolina on thursday. the hurricane has been reaching winds of over 200 kilometers per hour, damaging homes and causing floods on several islands in the caribbean. u.s. officials are closely monitoring the storm, which could strengthen and lead to evacuations along the eastern seaboard. divers in finland have begun salvaging what is thought to be the oldest champagne in the world. divers found about 70 bottles last month in a shipwreck off the coast of the islands in the baltic sea. they say it may have been a consignment sent by king louis xvi of france for the russian imperial court more than 200 years ago. experts say the bottles have been perfectly preserved in the temperature is 50 meters down. >> i would not be surprised if

that comes up a couple bottles short of a full case. >> up next, german unification -- a new system and new life. stay tuned for that.

,help.eu.com. >> it was 20 years ago on tuesday that representatives of the former communist east germany signed a document with west german leaders in berlin. it would bring an end to the country's post-war division and lay the groundwork for treatment -- german unity on october 1, 1990. the unification treaty was the culmination of the east's peaceful resolution and put an end to the police state that had grown increasingly corrupt and despised. >> two signatures sealed the end of east germany. [applause] with the unification treaty in 1990, the former communist state merge with the federal republic of germany and adopted its laws and constitution.

>> the unification treaty is a huge achievement for the future united germany. >> for many east germans, the treaty delivered freedom from an oppressive regime, but there are still areas of contention. one was whether to release the files selected by the east german secret police. another was what to do with land and property confiscated by the communists. on both issues, there was a compromise. there were also divisions over abortion rights. terminating a pregnancy in the east had been much easier than in the west, and it remained so for a time after unification, but it was britain's economic divide that stirred up the most bitter resentment. with a single stroke, the unification treaty turned east german it was a planned economy into market economy, and ma did not survive the transition. >> 20 years on, germany's

current economic recovery is delivering levels of employment that have not been seen here since that era. that goes even for the rural eastern regions, hard hit by the collapse of their uncompetitive agricultural sector, but eastern country folks are not just celebrating 20 years of post- unification prosperity and freedom. they are also happy that, just like western germans, for most people, it is your own personal merit and effort that determines how you live, not your party contacts or your talent for currying favor. >> this town in northern germany -- 3500 people live in the rural community, and like most others in the former communist east, it seems to -- it has seen major changes. before reunification, two large- scale agricultural collectors were based here. the state-run farms here were

praised as model operatis, and withhe sject of this civic education film in the late 1980's. back then, of around 300 people work for the livestock and crop production units. today, he still works on the land, but now, it is for the farmers' cooperative. he has seen 2/3 of his former colleagues lose their jobs in the tough environment of the market economy. >> before reunification, we did a lot by hand. the feat was unloaded by hand. fertilizing was done by hand. we had a tractor, but everything took time. >> new technology has made farm work less labor intensive, but he says he is now under far more

pressure. >> you have a lot more responsibility than before. there were moreeople here, and we were told what to do. now we have to decide for ourselves. i have to decide for myself, for my work colleagues. i'm responsible for everyone here. >> the cooperative's director has also seen both systems. before reunification, he was a functionary working in a planned, socialist economy. now, he is required to negotiate wages, calculate prices, and find customers for his products. playing by the rules he market has been a learning process for workers and for management. >> today, everyone knows we only get paid for what we produce, and people have that attitude now. everyone is dependent on their job and knows what is expected

of them. >> the past 20 years have transformed this town. the once spartan socialist township now has supermarkets and stores like those found all over germany. it has also attracted new residents, thanks to its picturesque countryside and proximity to the state capital. when the town outgrew the old kindergarten, a new one was built on the same spot. heidi has been a teacher here for almost 40 years, but her wages have only just reached parity with her colleagues in western germany. she used to fund political directives frustrating. now, it is the high demand placed on teachers. >> you cannot compare children today with those in east

germany. they are more self confidence, much more free. they are great. but it is simply not the best situation for one teacher to look after 18 kids. the work has become so intense that you are exhausted when you come back home. no one has any idea how hard it is. >> a short distance away is a mail order service with a staff of 200, it is the town's biggest employer. in 1990, west german entrepreneurs converted a state- run factory. they kept on some of the works. a stroke of luck for this man, now the company's chief technical officer. am i would have never gotten this far back in east germany. there were people who had contact or were party members. they always got the jobs, whether they could do it or not. they were the ones in these positions.

>> the managing director, whose father helped set up the company, and he has talked about the problems in the early years. back then, locals treated the west germans with suspicion. he says such prejudices are long gone. >> i know companies in the west and in the east and the different mentalitie i also kw mpansin southern germany. i would say the differences between north and south are just the same as east and west. it is a regional problem. >> meanwhile, this man continues to enjoy his time off in the garden, but he misses the social contacts of his old life, especially spending time with friends. >> you do not see them much anymore. they are all working in hamburg or someone else. sometimes, they are around on weekends, but it is always, "no

time, got to sh the kiw to get together and chat for an hour or so, and now it does not happen, and i kind of miss it -- got to rush." we use to get together and chat for an hour or so. >> memories of east germany have all but faded. >> they go where the work is and have adapted better than others. sometimes, they say it is not a big deal anymore, but it still is to us, even after 20 years. >> a w system and a new way of life. older generations of east germans have had to find their way since reunification. hear, they are proud that so many have succeeded -- here. >> that is our "in depth" as german marks 20 years since

reunification. you're watching dw-tv. stay tuned. captioned by the national captioning institute --www.ncicap.org--

captioning sponsored by macneil/lehrer productions >> lehrer: good evening. i'm jim leer. president obama addresses the nation as the u.s. combat mission ends in iraq. >> woodruff: and i'm judy woodruff. on the newshour tonight, we get the analysis of mark shields and david brooks. >> lehrer: and margaret warner in baghdad examines the challenges iraqis still face in their daily lives. >> woodruff: then, from mexico city, we learn the latest on the arrest of an alleged drug lord from jason beaubien of npr. >> lerher: we have another in john merrow's reports on the washington, d.c., schools.

tonight he looks at a new test for teachers. >> how can you possibly have a system where the vast majority of adults are running around thinking i'm doing an excellent job when what we're producing for kids is 8% success. >> woodruff: and jeffrey brown updates the story of new orleans musician and scholar michael white, five years after katrina. >> i went through a serious period of depression, of anger, of many different kinds of emotions. and then i came to realize the most valuable thing that i have i never lost. it's iide. it's that music tradition. >> lehrer: that's all ahead on tonight's newshour. major funding for the pbs newshour has been provided by:

and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs

station from viewers like you. thank you. >> lehrer: the psident tonight de ioffial. the u.s. military is moving from fighting to advising in iraq. he said it's time now to focus on restoring the u.s. economy. here's part of his address from the oval office at the white house. >> tonight i am announcing that the american combat mission in iraq has ended. operation iraqi freedom is over. and the iraqi people now have lead responsibility for the security of their country. this was my pledge to the american people as a candidate for this office. last february i announced a plan that would bring our combat brigades out of iraq while redoubling our efforts to strengthen iraq's security

forces and support its government and people. that's what we've done. our combat missi has ended. but our commitment to iraq's future has not. going forward, a transition transitional force of u.s. troops will remain in iraq with a different mission: advising and assisting iraq security forces; supporting iraqi troop in targeted counterterrorism missions; and protecting our civilians. consistent with our agreement with the iraqi government, all u.s. troops will leave by the end of next year. as our military draws down, our dedicated civilians-- diplomats, aid workers and advisors-- are moving into the lead to support iraq as it strengthens its government, resolves political disputes, resettles those displaced by war, and builds ties with the region and the world. through this remarkable chapter and the history of the united states and iraq, we have met our responsibilities.

now it's time to turn the page. as we do, i'm mindful that the iraq war has been a contentious issue at home. here, too, it's time to turn the page. this afternoon i spoke to former president george w. bush. it's well known that he and i disagreed about the war from its outset. yet no one can doubt president bush's support for our troops or his love of country and commitment to our security. as i've said, there were patriots who supported this war and patriots who opposed it. and all of us are united in appreciation for our servicemen and women, and our hopes for iraq's future. throughout our history, america has been willing to bear the burden of promoting liberty and human dignity overseas, understanding its links to our own liberty and security. but we have also understood that our nation's strength and

influence abroad must be firmly anchored in our prosperityt home. and the bedrock of that prosperity must be a growing middle class. unfortunately, over the last decade, we've not done what's necessary to shore up the foundations of our own prosperity. we spent a trillion dollars at war. often financed by borrowing from overseas. this in turn has shortchanged investments in our own people and contributed to record deficits. for too long we have put off tough decisions on everything from our manufacturing base to our energy policy to educaon reform as a result, too many middle class families find themselves working harder for less while our nation's long-term competitiveness is put at risk. and so at this moment, as we wind down the war in iraq, we must tackle those challenges at home with as much energy and grit and sense of common purpose as our men and women in uniform

who have served abroad. they have met every test that they faced. now it's our turn. in an age without surrender ceremonies, we must earn victory through the success of our partners and the strength of our own nation. every american who serves joins an unbroken line of heroes that stretches from lexington to gettysburg, from iwo jima to caisson to kandahar. americans who have fought to see that the lives of our children are betterhan our own. our oopsre the steel in our ship of state. and though our nation may be traveling through rough waters, they give us confidence that our course is true, and that beyond the pre-dawn darkness better days lie ahead.

syndicated columnist mark shields, "new york times" columnist david brooks. david, you said going in that the president had to walk several fine lines. to be kind of, yes, we did it but don't go too far. how do you think he walked the lines. >> he rose above the lines. i thought the speech was a little too much more generality. i thought it lacked the concreteness of individual experiences, the concreteness of exactly what we're going to do. i would say it's a speech that succeeded is not offending anybody and had some effect in unifying the country. i'm not sure you knew exactly what was happening or why we were gathered here. i thought it was a speech that, you know, did not pick any fights but it didn't settle any issues or give you a clear road map for where we're headed. >> lehrer: mark, looking back on it, do you think it was a speech that the president felt he had to give tonight? >> i mean, ....

>> lehrer: i mean outside events. in other words it was expected he would speak to the nation on this particular day. to coincide with the end of combat operations. he had to sit in the oval office? >> i think there was a logical demarcation point to make a statement on iraq which has been a source of great division, divisiveness and polarization within the country for a long time. he tried to use ... it struck me, the one unifying element in that whole national experience were the troops. the troops became the center piece of moving from iraq to the economy. i mean.... >> lehrer: through afghanistan. >> and then to the economy. we had to show the same kint of mettle and dedication and courage that they had shown here at home. we owed it to them to do it. but in answer to your question,

jim, what did lincoln say at gettysburg? a little note the world won't long remember. he was excessively modest in his own words. i can't imagine that this speech will be learned by elementary school kids. >> lehrer: just to not pick up on that. david, the idea that the the president, you know, this is a war without surrender , ceremonies, and that we've had lot of those. is he essentially saying we have to get used to that? this is the way modern wars will be ... have been and will be. is that something.... >> not necessarily true. i mean yugoslavia there was a winner and a loser. i'm not sure he's always right that. i guess he's right in this case because it will be decades before conflict and violence ends. i thought if was a sentence that's going to be remembered and that will be pulled out it will be the one where he has

said we have met our responsibility and now it's time to turn the page. thatould seem to signal, iraq, we've paid our debts to you. good luck with it. i'm not sure that's what he meant because there's another part of the speech he said our commitments to iraq are long lasting and we'll be there for you. do think that sentence will be the one that will be picked up and will be the core message of the speech. to me that's a very dangerous sentence. because the iraqis have achieved great things in the last couple of years. but the sectarian feelings are still there. without an american presence there, if we really are just leaving at the end of next year, a lot of serious people who have served a loin iraq think the whole... all the gains could be surrendered and another upsurge in sectarian violence. >> lehrer: particularly without a coalition government functioning. >> without a government that's functioning at all. but he was explicit. he said the u.s. troops will leave iraq by the end of next year. lately there's been sort of an argument and a pundit ocracy

that it's korea, that iraq is korea. >> lehrer: that's the kind of ceremony. >> that's right. that korea didn't take root as a democracy in its economy until the late '80s. believe me, there is not the will or the commitment for a 35-year stay in iraq. but i mean the sectarian thing, jim, for 1,000 years-- understand this-- the sunni minority has run iraq. over the shia majority. is there going to be sectarian strife? you better believe it. if that doesn't turn to strife i don't know what will. >> lehrer: what about his message on ahanian? was the a coherent message there? did he set parameters that you could go away from the tv set tonight and say now i know what we're doing about afghanistan? >> i thought he was deliberately sort of vague on afghanistan. of. >> lehrer: do you agree, david? >> absolutely. >> lehrer: why deliberately? you tell me.

>> i mean, it was ... the vagueness took the form of we will start coming out next july but we keep our word, i've kept my promise on this. but conditions will dictate , you ow, whether it's a platoon, a company a brigade or .... >> i would say this vagueness is a problem in iraq and afghanistan. one of the reasons the iraqis have not formed a government is because they think we're leaving and they don't want to do anything until we're gone. the same is true in afghanistan. they think we have one foot out the door or they suspect we may. it's been hard to get actual commitments because everybody is waiting for that moment when the u.s. power diminishes. i understand why he didn't want to settle the issue in afghanistan. the people in his government are bitterly divided. there are different arguments for getting out or staying a little longer. >> lehrer: isn't it correct, just to play devil's advocate, isn't there the momentum of american public opinion does

not want an open ended. they want deadlines. they wanted them on iraq. that's why they voted for obama. >> there's no question saying we've turned the page and met our responsibilities. we're out of there. that is popular backhoe. no question about that. >> the counterargument to david's position is they will not stand up, whether it's the iraqis or the afghans, until we stand down. i mean that's.... >> that proposition hasn't worked. >> lehrer: thank you both very much. >> woodruff: still to come on the newshour, the scars of war for ordinary iraqis; the arrest of an alleged drug kingpin in mexico; tests for teachers in the washington, d.c., schools; and a musical rebirth in new orleans. but first, the other news of the day. here's hari sreenivasan in our newsroom. >> sreenivasan: five more american troops were killed in afghanistan today. that made u.s. deat in e last four days and 55 for the month of august.

the total in july was 66 killed. word of the latest casualties came as general david petraeus, the top commander in afghanistan, acknowledged it's been slow going. >> it is very, very understandable that there would be impatience and desire to see progress right now. but the nature of these endeavors is such that that progress is slow. it's hard-fought. and as i mentioned earlier the fact is that we are just now for the first time getting the inputs right. >> sreenivasan: petraeus also said he shares afghan president hamid karzai's concern about threats from insurgents in pakistan. the f.b.i. chased leads today on two arab men arrested in the netherlands after a flight from the u.s. american officials said it now appears they were not part of any terror plot. still, the dutch investigation continued full force. we have a report from martin geissler of independent television news. >> reporter: this is ahmed mohammed nasser al soofi filmed by a passenger as he was led off a flight by dutch police

yesterday. he and his traveling companion have spent the past two days facing questions about their trip to holland and more specifically why al soofi sent a bag carrying what's been described as a mock bomb on a separate flight. bound for dubai and then yemen. the authorities here have been guarded with all but a few of the details they have at this stage. can you tell us how seriously it's being taken by the dutch authorities? >> seriously because we have arrested them. we're taken this seriously because otherwise we didn't arrest them. >> rorter: al ofi fell under suspicion as soon as he began his journey in alabama. security agents searched his bag and found a phone taped to a bottle. some reports also suggest he carried knives, box cutters and watches taped together. as none of the items presented a danger on their own he was allowed to continue his journey. he flew first to chicago where his companion joined him. they were due to travel on to yemen via washington and dubai

but at the last minute their destination changed to amsterdam. now their bags were going through washington and they weren't. that set alarm bells ringing again. this case is particularly sensitive here because it has real echoes of another case. a nigerian accused of trying to blow up the amsterdam to detroit flight on christmas day as well as an airport connection. there were addresses in detroit and they're from yemen. he is said to have attended terror training camp there. dutch police say they're working closely with the american authorities on this case. they have until thursday night to decide whether there's enough evidence to bring charges. >> sreenivasan: white house officials said tay neither of thmen was on terr wah list in the u.s. in the middle east, a palestinian gunman killed four israelis in the west bank. it came on the eve of new middle east peace talks in washington. police said the shooter opened fire on a car, killing two men and two women. the militant group hamas claimed responsibility. the israeli government vowed to

retaliate. from north carolina to new england, the east coast turned its attention to hurricane earl today. the second major storm of the atlantic season built up winds of 135 miles an hour. the big storm churned toward the u.s. mainland as it left the caribbean region in its wake. it battered puerto rico overnight after lashing various islands with strong winds and heavy downpours. but there was no word of any casualties in the caribbean. by this afternoon, forecasters projected earl was on track to make a close approach to cape hatteras, north carolina, late thursday, just in time for the labor day holiday weekend. it was expected to turn north and miss a direct landfall. still the national hurricane center urged coastal communities to keep an eye on the storm's path, and evacuations remain possible if the storm wobbles to the west. local emergency management officials were already taking

heed. >> everybody is ready, and we're watching it. we're crossing our fingers that it doesn't impact the weekend and everybody can enjoy it. once again people really need to pay attention to what's going on over the next couple days. >> reporter: for now earl was generating heavy surf and rip current warnings in several states. close behind the hurricane, another tropical storm, fiona, neared the caribbean today. it was expected to stay farther out in the atlantic. wall street s osed out its worst august in nine years. the dow jones industrial average gained five points to close at 10,014. the nasdaq fell nearly 6 points to close at 2114. and the price of oil continued its recent slide, falling below $72 a barrel. those are some of the day's major stories. now, back to judy. >> woodruff: now, back to the iraq story. margaret warner continues her reporting from there as iraqis take more control of their security. margaret talks with iraqis around the country about how safe they are now feeling. >> warner: one of the great

delicacies of iraqi cuisine is fresh fish, split open, sliced and oiled and grilled over an open wood flame for an hour. during baghdad's years of bloodshed, this popular park along the tigris river was shut down. restauranteurs like this man left town. now he's back doing what he loves best. >> people just want to go out and enjoy themselves. they are sick and tired of the situation. they want back again. >> reporter: among his customers this hot baghdad night he and his wife are relieved to be out. >> we don't go after two years ago any place. any place. >> warner: do you feel safer? >> yes. >> a little bit safer. >> more than before. >> when we go with the whole family it's different. but alone, no. >> warner: make no mistake about it. baghdad retains the feel of a garrison city.

drivers must navigate a maze of blast walls, check points and roving iraqi convoys. many buildings bear the bullet and mortar scars of seven years of fighting and occupation. and bombs still explode almost daily. its people, too, bear the scars and trauma of war. none more so, says activist hannah edward, than women. >> we have over one million women are widows because of the violent situation after 2003. this is a lot for the country. the widows have no incomes, no source of incomes. there are children. they have children. >> warner: one of those widows, this 40-year-old. in 2006 her police officer husband and their two young sons were abducted by insurgents. >> they took him out of the car and chained him to the back. took him to some ruins near the highway and slaughtered him in

front of his kids. after they slowly killed him they cut off his head in front of them. >> warner: since then, she and the children have been living the edge and not just financially. her house in baghdad was at the center of the inter-ethnic carnage that exploded that same year. >> bullets were flying everywhere. sometimes they hit inside the house. we had to lock the doors, sit inside the room and listen to the sound of bullets. i didn't have a weapon. my husband was dead and i was so scared. someone would come inside and kill us. >> warner: during the height of the sectarian violence in baghdad this traffic circle was a war zone. killings, car bombs, suicide attacks-- this neighborhood saw an average of 40 bodies a day pile up in its streets. now it's quite a different picture. army and police patrol the

streets in convoys and on foot. markets are coming back and so are some shoppers. 33-year-old dentist and mother is shopping for shoes with her sister. >> we see the guards here, the policemen, more. they're in the market. you can feel safe here. two years, three years ago we don't go. alone. >> warner: security is so improved, she says, that she can now see her dental patients in the evening. but still, she feels confined. police set up random security roadblocks without warning. >> it could be closed. you can't stay in your car with your kids this hot. you stay two hours sometimes in your car. >> warner: if they shut down the neighborhood.... >> don't. >> warner: you're locked out. >> it's locked. >> warner: more than a million other professional iraqis who couldn't deal with the violence

or frustration fled the country. hannah edward says iraq's middle class hasn't recovered. >> they are suffering from poverty, from displacement of enduring the sectarian war. many of them run away from the country. >> warner: the lack of predictable security also holds back the economy and jobs. with just a ninth grade education, another widow is now learning computer skills. >> my dream is to get a job with a good salary, to be something in this society and support my children. >> warner: do you think it will be possible to find a job? >> i could get a minor job but nothing to fulfill my dream. we have students male and female who graduate from universities and they can't find a job. >> warner: do you want to stay in iraq? or if you had the opportunity, would you want to leave? >> i would definitely leave. it's just too difficult to live

in iraq. everything is difficult. >> warner: things are quite different in the ancient holy city of najaf, 100 miles south of baghdad. it attracts shiite pilgrims from throughout the islamic world. this thursday night outside the shrine of imam ali thousands have gathered to break the daily fast of ramadan. after picnicking on roasted chicken and rice, they relax for hours, visiting with family and friends and with us. najaf was brutalized in the time of saddam hussein and saw its share of post-invasion bloodshed too.

yet college students note when explosions hit, more than a dozen iraqi cities the day before, the holy cities of the shiite south were untouched. >> we are all shiites here so we feel safe and secure. we come to najaf to visit the shrine of ali or to karbala to visit the shrine of hussein because they are holy places for the shiite people. we feel safe. >> warner: under a tent nearby, this man and his family are resting in the cool of a misting fan. >> four years ago we could not go out after a certain hour. not because we told you not to but because you were too scared to go out. now in karbala, you can go out any time. >> warner: his mother agreed... up to a point. >> i feel totally safe. our area is just as safe for women as it is for men. >> warner: but she is still haunted.

>> i can say this to you. iraqi women are tired. tired of this situation. as mothers and sisters we're always living in fear. when our sons or brothers go anywhere, especially if they go to baghdad, we worry all the time. that's why iraqi women are so tired. >> warner: these najaf women didn't look tired later that evening at the brand new mirage mall down the road. clad in their full-length clothes they scooped up the american-packaged cosmetics, clothes and baby wares. >> if you check with the cashier everyday they have more goods here. >> warner: this man of dearborn heights, michigan, just opened this mall three weeks ago. it's najaf's first. at 10:30 on a thursday night it's mobbed. he never would have dared make this investment two or three years ago. >> najaf is different than baghdad. the business has become very

good. >> warner: he credits the local government for enforcing a high level of security. but he says the war-scarred people of najaf are a factor too. >> they understand because if anything happens, they know. >> warr: the governor of najaf isn't a bit modest about his role in bringing security to this region. with an iron hand when need be. >> we are not against anybody, the islamic, secular, liberals. i told them you are free to work, to do something. get an education, culture, anything. security is the issue of our government. >> warner: he's also quick to share credit with najaf's shiite clergy and tribal leaders. >> the clergy has the power on the people. they always taught their people to respect their government, to respect.

>> warner: back in the sectarian stew of baghdad, the dentist doesn't share the same faith in iraq's central government or iraqi society. to bring about a better life. >> who will change it? nobody will change it. >> warner: you don't think the government ever will be strong enough and capable enough? >> we have 30 years. from the day i born, we have wars, killings. 30 years the same. we need up to 100 years we need to change the condition. >> warner: well, i hope you're wrong. >> i don't think so. i don't think so. ask my mom and my grandmother. it was the same. i will ask my children and their children. it will be the same. believe me. iraq is cursed. believe it. it is cursed.