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CNN Live At Daybreak

Latest on Capture of Palestinian Militant Who Masterminded Achille Lauro Hijacking

Aired April 16, 2003 - 05:00   ET

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

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


CAROL COSTELLO, CNN ANCHOR: Five o'clock Eastern time.
I'm Carol Costello at the CNN Center with a check of the latest developments for you.

A top U.S. official says the capture of Abu Abbas sends a warning to other terrorists -- we will hold you to account. Abbas was captured by U.S. special forces at a compound on the southern outskirts of Baghdad. We'll go live to Baghdad shortly for a full report.

Despite concerns about Syria, Secretary of State Colin Powell says the U.S. has no war plans for Iraq's neighbor. Top U.S. officials have turned up the rhetoric against Damascus recently. They've accused Syria of harboring Iraqi leaders and developing weapons of mass destruction.

A 12-year-old Iraqi boy who lost his arms in a coalition air strike arrived at a Kuwait City hospital today for treatment. Ali Ismaeel Abbas Hamza's story has been followed worldwide. His parents and eight other family members died in that air strike.

(OTHER NEWS HEADLINES)

Here's what's coming up this hour. Rescuing Private Lynch, we'll review new details about the CIA's role in that dramatic rescue.

Plus, the attack on the umpire. Find out what happened when a violent baseball fan charges the field at a game between the Royals and the White Sox.

And delivering Baghdad letters, how notes from family members outside of Iraq spell relief along with water and food aid going to the capital.

And good morning to you.

It's Wednesday, April 16.

I'm Carol Costello at CNN's global headquarters in Atlanta.

It's 5:00 a.m. on the East Coast, 2:00 a.m. out West and one o'clock in the afternoon in the new Iraq.

Let's go directly to Baghdad now, shall we, for the latest on the capture of the Palestinian militant who masterminded the Achille Lauro hijacking.

CNN's Michael Holmes is standing by live in Baghdad -- good morning.

MICHAEL HOLMES, CNN CORRESPONDENT: Good morning to you, Carol.

Yes, certainly some drama when news came out about this. What happened, we're told, is that Abu Abbas headed for Syria. Now, he was going there. He got quite close to the border, I'm told, and then he was stopped. He was turned around by, I believe, Kurdish soldiers in the area and sent back the way he came.

Now, when he was about 50 miles west of Baghdad, word had obviously gotten out to U.S. special forces. They pounced, intercepted his vehicle, took him into custody.

As you mentioned, Abu Abbas is part of the Palestine Liberation Organization. He was responsible as the architect of the Achille Lauro hijacking during which an elderly American tourist was shot and killed. Since then he has been around the Middle East. He has been in Baghdad most recently. Under the terms of the Oslo Accords, he was allowed to return to Gaza and he did so, even going into Israel at one point to visit his birthplace.

And then once the second intifada started, he perhaps saw the writing on the wall that perhaps the Oslo Accords might be looking shaky, and so he departed.

He came to Baghdad. He's been living here for some time. He says that it's one of the few places he can live now. He is in custody. What will happen to him? Well, he does face a life imprisonment term which was handed down in abstentia by Italy. And whether he is sent back to Italy or not, yet to be seen. He is, of course, in U.S. custody. They may wish to take him back there. When asked what would happen to him a major at CENTCOM in Doha, Qatar said justice will be served -- Carol.

COSTELLO: Yes, and just something else to throw into the mix. Just this morning a Palestinian official came out and said that by the United States arresting Abbas, they violated the Oslo peace accord, and that essentially says no member of the PLO will be arrested for incidents prior to September 13, 1993. So this throws some more confusion into the matter.

HOLMES: That's right, Carol. It's a very interesting development. In fact, Saeb Erakat came out with that today, the chief Palestinian negotiator, also a member of the Palestinian Legislative Council. And he makes the point that under the Oslo Accords -- let's remember, they were signed in 1993 -- as you correctly point out, any member of the Palestine Liberation Organization could not be held accountable for what happened prior to the signing of the Accords.

Now, the Achille Lauro took place in 1985. The U.S. signed these Accords, Israel, the Palestinian Authority, although other countries, Norway and other Europeans. So there's going to be an interesting political debate here about -- and jurisdictional debate over whether they could, in fact, take him into custody at all. He is considered by the United States a terrorist, but these Accords are still in effect. There are those who say that since the intifada, the Oslo Accords have broken down, and certainly a lot of what was agreed to in Oslo is not being adhered to by either side at the moment.

But the Accords, nevertheless, are still in effect. They haven't gone away. So there's going to be some interesting debate in Washington and elsewhere about what Saeb Erakat says -- Carol.

COSTELLO: We'll see what happens.

Michael Holmes reporting live from Baghdad this morning.

The fact that Abbas is now in U.S. custody is somewhat comforting to the Klinghoffer family. His daughters did pass along a statement and this is part of it. It says, "We are delighted that the murderous terrorist, Abu Abbas, is in U.S. custody. Bringing Abbas to justice will send a strong signal to terrorists anywhere in the world that there is no place to run, no place to hide."

Now more on keeping the peace in Baghdad. Several hundred troops called the Free Iraqi Forces arrived there this morning. They're working with U.S. special forces. So what role will they play in Baghdad? Well, that is unclear right now.

CNN's Mike Boettcher is traveling with all of them and he joins us live by phone this morning -- Mike, good morning.

MIKE BOETTCHER, CNN CORRESPONDENT: Good morning, Carol.

Well, 120 of the FIF, the Free Iraqi Forces, did arrive at mid- morning in Baghdad. Right now they're waiting for orders on what to do. They were escorted by the U.S. special forces, who helped to train them over the last few days, and they were also trained for a period of several weeks in Northern Iraq.

While they were deployed in southern Iraq, they did patrol smaller cities and villages. And according to the special forces that escorted them, they were very successful. And I saw for myself the various missions they went on. They seemed to get the cooperation of the population. They were able to work informants and find weapons caches, arrest Fedayeen and also generally keep peace in these cities.

They hope to transfer that ability in the south to the north and central of Iraq, including Baghdad. But that may be a tougher task. The south is primarily Shiite, which is more sympathetic to the FIF. The FIF has Sunni Muslims and Shiite Muslims. But in Baghdad, as we arrived this morning, the reception was indifferent, I would say. There were some people who gave the thumbs up and applauded and smiled. But for the most part, people just watched as they passed by.

Now, they're here in Baghdad, awaiting orders what to do -- Carol.

COSTELLO: All right, thanks.

Mike Boettcher updating us live this morning.

Now to the difficult issue of governing Iraq.

Our Bill Schneider looks at what it may take for Washington to win the peace now that it's apparently won the war.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our victory in Iraq is certain, but it is not complete.

WILLIAM SCHNEIDER, CNN CORRESPONDENT (voice-over): What does the U.S. have to do to complete the mission? It boils down to three things: provide humanitarian assistance to Iraqis who need food, water, shelter and medical supplies; maintain law and order so Iraqis have a sense of security; turn over power to a government that has legitimacy with the Iraqi people, one that is purged of dangerous elements linked to Saddam Hussein's regime, but is not seen as a U.S. puppet.

Achieving those tasks involves several thorny issues. What role will the United Nations play? How much will it cost and who's going to pay for it? It's not clear that either the U.N. or other countries will be willing to share the costs. It will take several years to restore full oil production in Iraq and the Bush administration says Iraq's oil money will be used only for the Iraqi people, and presumably not for U.S. military costs.

How long will the U.S. stay in Iraq?

BUSH: We will remain in Iraq as long as necessary and not a day more.

SCHNEIDER: The longer the U.S. stays, the more it will look like a military occupation. And remember, Iraq has been governed by the Turks, the British, a king, and, for the last 24 years, a totalitarian dictator, but never a democracy.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And we may get a response today to new U.S. accusations that the former head of Iraq's intelligence service might be in Syria.

CNN's senior international correspondent Sheila MacVicar filed this report just a short time ago.

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN CORRESPONDENT: The news that U.S. administration officials are now saying that a former chief of an Iraqi intelligence organization is here in Damascus will, of course, leave Syrian officials with some big questions to answer a little later on this morning. They have consistently denied either harboring or giving safe passage to any senior official from the regime, or even family members from Iraq's regime, trying to transit Syria. We have heard consistent warnings from U.S. officials over the last few days that if Syria is giving safe haven to anyone that's on the U.S. list, they should consider giving them up, and that if there are people seeking to enter Syria, they should make clear to them that their borders are closed.

Now, in this instance, the U.S. administration is talking about Farouk Hijazi. Mr. Hijazi was most recently Iraq's ambassador to Tunisia, based in the Tunisian city of Tunis. Prior to that, he was Iraq's ambassador to Turkey. In the late 1990s, he was also the point person between Saddam Hussein's regime and Osama bin Laden at a time when the United States was engaging with the Taliban and appeared certain to -- appeared ready, rather, to offer the Taliban recognition in exchange for the expulsion of Mr. Bin Laden.

Osama bin Laden went looking for another place to go and came into contact with the Iraqis. Farouk Hijazi was the person that was sent to meet with him, contacts that eventually foundered on grounds of mutual suspicion and distrust. And, as we all know, of course, Osama bin Laden remained in Afghanistan until the fall of 2001.

Now, the question now for the Syrians is is Mr. Hijazi here? He was reportedly traveling on a diplomatic passport. What's the value of that diplomatic passport and the immunity it would offer if it comes from a regime that is no longer in existence? The U.S. has a particular interest in Mr. Hijazi and that is because they suspect him of involvement in an early 1990s plot to assassinate the first President Bush.

Big questions for the Syrians to answer today.

Sheila MacVicar, CNN, Damascus.

(END VIDEOTAPE)

COSTELLO: Lots of questions remain. The latest killings in Iraq are not linked to combat, but apparent crowd control. At least 10 Iraqis were reportedly killed and 16 injured in a fight between Marines and a stone throwing crowd in Mosul. A CENTCOM official quoted by the "New York Times" denies reports U.S. troops shot into the crowd. A CENTCOM spokesman also says the Marines were fired on, so they shot back.

We'll get the latest on the military situation when we take the U.S. Central Command national briefing live from Doha, Qatar. Of course, that happens at 7:00 a.m. Eastern, 4:00 Pacific Time.

Just ahead, his story has touched the hearts of millions and it's a jolting reminder of the cruelties of war. Remember the Iraqi boy maimed during a coalition bombing that killed his family? We'll tell you how the world has reached out to comfort him.

Plus, CNN has learned new details about the amazing rescue of POW Private Jessica Lynch. We'll tell you about it.

And later, cleaning up some dangerous leftovers abandoned by the Iraqi military.

We'll be right back.

COMMERCIAL

COSTELLO: One of the most telling images of war, a U.S. Marine taking a nap in one of Saddam Hussein's many palaces. He looks pretty comfortable.

Well, we told you this week about one 12-year-old boy, an innocent caught in the wave of bullets and bombs early in the war. His story is tragic and we're about to show you how far it has gone -- how it has gone, rather, for Ali Ismaeel Abbas Hamza. We caution you, though, some of what you see is quite graphic.

(BEGIN VIDEOTAPE)

(REPEAT OF EARLIER SEGMENT AIRED DURING 04:00-05:00 HOUR)

(END VIDEOTAPE)

COSTELLO: And he's in Kuwait this morning. We'll get an update again for you later.

Coming up, intriguing details on the inside help the CIA got hours before the rescue of Private Jessica Lynch.

We'll be right back.

COMMERCIAL

COSTELLO: 5:23 Eastern time.

Welcome back.

CNN is learning new details about the rescue of POW Jessica Lynch. An Iraqi spy on the CIA's payroll played a key part in her return. Armed with a video camera, he snuck into the Iraqi hospital where Lynch was being held and mapped a route to get her out of there.

CNN's Barbara Starr says it helped make the rescue mission a success.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): CNN has learned that just hours before Private First Class Jessica Lynch was rescued by special forces, the CIA sent a trusted Iraqi operative already on the agency payroll into the hospital with a secret video camera provided by the Pentagon. His mission? To tape the building's interiors, critical information for planning the daring raid, a rescue the team would then tape themselves as it unfolded.

In the 72 hours before the April 1st rescue, the U.S. intelligence community began to hear whispers of Jessica Lynch's location. At least two enemy prisoners of war offered some information indicating she had been at another location in Nasiriya. But none of that could be verified.

Then a local Iraqi man informed nearby Marines that Jessica Lynch was at the hospital. His information needed to be verified.

But the CIA and the military were already working frantically on a number of leads, all pointing to the hospital in Nasiriya. The Defense Intelligence Agency obtained hospital blueprints for the commando team. It was then decided to risk sending in the Iraqi operative with a hidden video camera.

The rescue team was actually a group of special forces formed to hunt and capture regime leaders. They were diverted to this mission. It was Navy SEALS that went into the hospital, while Army Rangers provided outside security and the Marines staged a diversion. At the same time, Air Force special forces were waiting outside to take Jessica Lynch to safety.

(on camera): The mission went off without a hitch. Indeed, by the time the special forces team got there, most Iraqi fighters had deserted the hospital and the role of the CIA operative would remain hidden until now.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: And we'll hear about being in the heat of battle at the top of the next hour. Some of those wounded U.S. troops are holding a news conference and we'll take you live to Germany to Landstuhl Regional Medical Center, where many of those troops are receiving treatment. We'll hear their stories. That will be live at the top of the next hour on DAYBREAK.

An update of the hour's top stories coming up.

And later, making it possible for those outside Baghdad to communicate to those within.

COMMERCIAL

COSTELLO: 5:28 Eastern Time. Here are the latest developments at this hour.

The fugitive mastermind of the 1985 hijacking of the Achille Lauro cruise ship was captured Monday near Baghdad by U.S. forces. That's according to Central Command. Palestinian official Saeb Erakat, though, says the arrest is a violation of the 1993 Oslo Peace Accords.

Twelve-year-old Ali arrived at a Kuwait hospital early today. The boy lost his arms and most of his family in an air strike. He was also seriously burned. The Limbless Association of Britain tells CNN that Ali was among a group of children flown by the United States to Kuwait for medical treatment.

Secretary of State Colin Powell says the U.S. has no designs on attacking Syria, but he warns Syria could face sanctions if it gives sanctuary to people the U.S. calls war criminals. U.S. officials charge that Iraq's former head of intelligence has taken refuge in Damascus.

(OTHER NEWS HEADLINES)

COSTELLO: And good morning to you.

It's Wednesday, April 16th.

I'm Carol Costello at CNN's global headquarters in Atlanta.

One dividend from the war in Iraq has been to tie up an 18-year- old loose end, namely the 1985 Achille Lauro hijacking. For the past nine years, Abu Abbas, the mastermind behind the terror attack, has been living in Iraq under the protection of Saddam Hussein. The war suddenly changed that.

CNN national security correspondent David Ensor brings us up to date.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): CNN was the first to report that Abu Abbas, a wanted terrorist since 1985, was captured by U.S. special forces Monday night in a compound on the southern outskirts of Baghdad, acting on a tip from U.S. intelligence. Abu Abbas, the nom de guerre of Muhammad Abbas, was taken along with several others, U.S. officials say, and documents and passports. The fact that Saddam Hussein's government gave him sanctuary was cited recently by President Bush as evidence of Baghdad's ties to terrorists.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Iraq has also provided safe haven to Abu Abbas, who was responsible for seizing the Achille Lauro and killing an American passenger.

ENSOR: Leon Klinghoffer, seen here with his wife, was shot in full view of his wife and then his wheelchair pushed overboard off the deck of the Italian cruise ship, the Achille Lauro, which the terrorists had just seized. Abbas was found guilty of murder by an Italian court. U.S. officials say there is no decision yet on his fate. Piracy and conspiracy charges in the U.S. have expired, but could be refiled, officials say.

In the years since 1985, Abbas has lived at various times in Tunisia, Libya and the Gaza Strip, before settling in Iraq. In a 1996 interview with CNN, he said they never intended to kill anybody.

ABU ABBAS (THROUGH TRANSLATOR): The media didn't tell the world that Abu Abbas saved the lives of 600 passengers, only that a disabled man was killed.

ENSOR (on camera): Abu Abbas was not a serious threat to the U.S. or others. But officials say his capture could send a message to terrorists around the world that no matter how long it takes, the U.S. will get them in the end.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And the fact that Abbas is now in U.S. custody is somewhat comforting to the Klinghoffer family. His daughters did pass us a statement and this is part of what it says. It says, "We are delighted that the murderous terrorist, Abu Abbas, is in U.S. custody. Bringing Abbas to justice will send a strong signal to terrorists anywhere in the world that there is no place to hide."

There was a different reaction, though, to the capture from Saeb Erakat. The Palestinian cabinet member says the U.S. violated the Oslo Peace Accords when it seized Abbas. That agreement specified no member of the Palestine Liberation Organization will be arrested for an action before September of 1993. The Achille Lauro incident happened in 1985.

Another late breaking development to pass along to you, Italy's justice minister says he will ask for the extradition of Abu Abbas. An arrest warrant had been issued for Abbas after he somehow slipped out of Italy back in 1985.

On to Syria now. The U.S. says the former Iraqi intelligence chief has taken refuge in Damascus and the U.S. is worried other Iraqi leaders are there, too. For more on how the U.S. is dealing with Iraq's Western neighbor here, CNN's State Department correspondent Andrea Koppel.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN CORRESPONDENT (voice-over): One day after a chorus of Bush administration officials threatened the regime of Syrian President Bashar al-Assad, Secretary of State Powell appeared before foreign journalists to play down any suggestion Syria was next on a U.S. hit list.

COLIN POWELL, SECRETARY OF STATE: But there is no list. There is no war plan right now to go attack someone else, either for the purpose of overthrowing their leadership or for the purpose of imposing democratic values.

KOPPEL: No war plan right now, but still a softer message than Monday, when Defense Secretary Donald Rumsfeld refused to rule out Syria as a target.

QUESTION: Should Syria understand that one of the potential consequences of their actions that you're talking about today is military action by the United States?

DONALD RUMSFELD, SECRETARY OF DEFENSE: I didn't say anything like that.

QUESTION: But could you respond to that, though? Is that something that they should consider as a potential... RUMSFELD: I think what I've -- I've said what I've said and I've stated facts, and that's what I tend to do. In terms of policy, that's for others.

KOPPEL: Tuesday, Rumsfeld demurred.

RUMSFELD: The president has spoken on it. Secretary Powell has spoken on it. I'll leave that to them.

BUSH: And there's no doubt we're going to meet those priorities.

KOPPEL: President Bush has not spelled out potential consequences for the Syrian regime. But Powell repeated U.S. warnings to Syria not to harbor Iraqi war criminals, to end its alleged chemical weapons program and support for terrorists. The U.S. also believes Iraqi chemical and biological weapons may have been moved into Syria for safekeeping.

POWELL: We hope that Syria understands now that there is a new environment in the region with the end of the regime of Saddam Hussein and that Syria will reconsider its policies of past years.

KOPPEL (on camera): At the moment, the Bush administration's policy seems to be to try to use its victory in Iraq to scare Syria into cooperating without closing the door on possible military action. As one senior administration official put it, the U.S. has no intention of using force against Syria, unless, "Syria does something really stupid and fires on American troops."

Andrea Koppel, CNN, at the State Department.

(END VIDEOTAPE)

COSTELLO: And some signs of normalcy are returning to Baghdad with the opening of more shops.

But as CNN's Nic Robertson reports, merchants must deal with shortages and security concerns.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN CORRESPONDENT (voice-over): With a smile and a blast at Saddam, Mohammed (ph) reopens his bookstore. Neighbors quick to point out he's not a looter. After a month's closure, dust thick on the shelves he prudently emptied before he left. Gone so long the clock stopped. But now, he says, it's time to restart his business.

Today it's safer, he says. I didn't hear any tank shells or bullets. Next door, Mohammed (ph) the grocer is back at work. Candy and soda all he can offer for now.

MOHAMMED: We are afraid. Any time, any, but when the night is coming, we are closing. And I don't know the next day. I see my shop, my shop safe or robbed. ROBERTSON: At the bakery, war didn't stop Abu Achmed (ph) working. But now he says making bread is getting harder. "It's very difficult to do our job. We have a shortage of everything," he says. "Electricity, flour, fuel, water, even salt."

At the counter, customers wait patiently.

UNIDENTIFIED MALE: Losing the dignity of the Arab.

ROBERTSON: But seeing us, many vent pent up anger at the lack of electricity and security.

UNIDENTIFIED MALE: I wish that I am nothing now. I wish that I have no mind to think, not my country, that I lost my country. Who can help me to feel that my country is still there?

ROBERTSON (on camera): Most stores here remain locked up and shuttered. Many businessmen, it seems, still feel it's too dangerous to open up just yet. The situation is still far from normal.

(voice-over): Increasing their efforts to restore that normality, U.S. Marines are now patrolling some Baghdad streets on foot, a more visible presence designed to help reduce looting. But unlike British forces in the south, these U.S. Marines still in full combat gear. To help restore water and other much needed services, Marines have been meeting with city planners and engineers. The shift away from fighting the war apparently not topping the thinly spread U.S. force from its original mission. This day, another weapons cache discovered by the Marines in the center of the capital.

Possibly, however, the long days taking their toll. This Marine snatches a quick nap in a chair at Saddam's wife's palace. Most in the city, though, would likely prefer the Marines weren't this stretched and there were enough to get the job done quickly.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

COSTELLO: And I want to remind you about two news conferences you will not want to miss this morning. American servicemen wounded in Iraq will speak at the Landstuhl Regional Medical Center in Germany. That begins about 30 minutes from now at 6:00 a.m. Eastern. CNN will bring it to you live. And about an hour later, Central Command will hold its daily news briefing in Doha, Qatar. That's at 7:00 Eastern. CNN will bring you that live, too.

When our coverage continues now, though, the queen of Jordan speaks out against U.S. military planners for their approach to the war in Iraq. We'll tell you what she has to say.

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Achille Lauro Hijacking>


Aired April 16, 2003 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Five o'clock Eastern time.
I'm Carol Costello at the CNN Center with a check of the latest developments for you.

A top U.S. official says the capture of Abu Abbas sends a warning to other terrorists -- we will hold you to account. Abbas was captured by U.S. special forces at a compound on the southern outskirts of Baghdad. We'll go live to Baghdad shortly for a full report.

Despite concerns about Syria, Secretary of State Colin Powell says the U.S. has no war plans for Iraq's neighbor. Top U.S. officials have turned up the rhetoric against Damascus recently. They've accused Syria of harboring Iraqi leaders and developing weapons of mass destruction.

A 12-year-old Iraqi boy who lost his arms in a coalition air strike arrived at a Kuwait City hospital today for treatment. Ali Ismaeel Abbas Hamza's story has been followed worldwide. His parents and eight other family members died in that air strike.

(OTHER NEWS HEADLINES)

Here's what's coming up this hour. Rescuing Private Lynch, we'll review new details about the CIA's role in that dramatic rescue.

Plus, the attack on the umpire. Find out what happened when a violent baseball fan charges the field at a game between the Royals and the White Sox.

And delivering Baghdad letters, how notes from family members outside of Iraq spell relief along with water and food aid going to the capital.

And good morning to you.

It's Wednesday, April 16.

I'm Carol Costello at CNN's global headquarters in Atlanta.

It's 5:00 a.m. on the East Coast, 2:00 a.m. out West and one o'clock in the afternoon in the new Iraq.

Let's go directly to Baghdad now, shall we, for the latest on the capture of the Palestinian militant who masterminded the Achille Lauro hijacking.

CNN's Michael Holmes is standing by live in Baghdad -- good morning.

MICHAEL HOLMES, CNN CORRESPONDENT: Good morning to you, Carol.

Yes, certainly some drama when news came out about this. What happened, we're told, is that Abu Abbas headed for Syria. Now, he was going there. He got quite close to the border, I'm told, and then he was stopped. He was turned around by, I believe, Kurdish soldiers in the area and sent back the way he came.

Now, when he was about 50 miles west of Baghdad, word had obviously gotten out to U.S. special forces. They pounced, intercepted his vehicle, took him into custody.

As you mentioned, Abu Abbas is part of the Palestine Liberation Organization. He was responsible as the architect of the Achille Lauro hijacking during which an elderly American tourist was shot and killed. Since then he has been around the Middle East. He has been in Baghdad most recently. Under the terms of the Oslo Accords, he was allowed to return to Gaza and he did so, even going into Israel at one point to visit his birthplace.

And then once the second intifada started, he perhaps saw the writing on the wall that perhaps the Oslo Accords might be looking shaky, and so he departed.

He came to Baghdad. He's been living here for some time. He says that it's one of the few places he can live now. He is in custody. What will happen to him? Well, he does face a life imprisonment term which was handed down in abstentia by Italy. And whether he is sent back to Italy or not, yet to be seen. He is, of course, in U.S. custody. They may wish to take him back there. When asked what would happen to him a major at CENTCOM in Doha, Qatar said justice will be served -- Carol.

COSTELLO: Yes, and just something else to throw into the mix. Just this morning a Palestinian official came out and said that by the United States arresting Abbas, they violated the Oslo peace accord, and that essentially says no member of the PLO will be arrested for incidents prior to September 13, 1993. So this throws some more confusion into the matter.

HOLMES: That's right, Carol. It's a very interesting development. In fact, Saeb Erakat came out with that today, the chief Palestinian negotiator, also a member of the Palestinian Legislative Council. And he makes the point that under the Oslo Accords -- let's remember, they were signed in 1993 -- as you correctly point out, any member of the Palestine Liberation Organization could not be held accountable for what happened prior to the signing of the Accords.

Now, the Achille Lauro took place in 1985. The U.S. signed these Accords, Israel, the Palestinian Authority, although other countries, Norway and other Europeans. So there's going to be an interesting political debate here about -- and jurisdictional debate over whether they could, in fact, take him into custody at all. He is considered by the United States a terrorist, but these Accords are still in effect. There are those who say that since the intifada, the Oslo Accords have broken down, and certainly a lot of what was agreed to in Oslo is not being adhered to by either side at the moment.

But the Accords, nevertheless, are still in effect. They haven't gone away. So there's going to be some interesting debate in Washington and elsewhere about what Saeb Erakat says -- Carol.

COSTELLO: We'll see what happens.

Michael Holmes reporting live from Baghdad this morning.

The fact that Abbas is now in U.S. custody is somewhat comforting to the Klinghoffer family. His daughters did pass along a statement and this is part of it. It says, "We are delighted that the murderous terrorist, Abu Abbas, is in U.S. custody. Bringing Abbas to justice will send a strong signal to terrorists anywhere in the world that there is no place to run, no place to hide."

Now more on keeping the peace in Baghdad. Several hundred troops called the Free Iraqi Forces arrived there this morning. They're working with U.S. special forces. So what role will they play in Baghdad? Well, that is unclear right now.

CNN's Mike Boettcher is traveling with all of them and he joins us live by phone this morning -- Mike, good morning.

MIKE BOETTCHER, CNN CORRESPONDENT: Good morning, Carol.

Well, 120 of the FIF, the Free Iraqi Forces, did arrive at mid- morning in Baghdad. Right now they're waiting for orders on what to do. They were escorted by the U.S. special forces, who helped to train them over the last few days, and they were also trained for a period of several weeks in Northern Iraq.

While they were deployed in southern Iraq, they did patrol smaller cities and villages. And according to the special forces that escorted them, they were very successful. And I saw for myself the various missions they went on. They seemed to get the cooperation of the population. They were able to work informants and find weapons caches, arrest Fedayeen and also generally keep peace in these cities.

They hope to transfer that ability in the south to the north and central of Iraq, including Baghdad. But that may be a tougher task. The south is primarily Shiite, which is more sympathetic to the FIF. The FIF has Sunni Muslims and Shiite Muslims. But in Baghdad, as we arrived this morning, the reception was indifferent, I would say. There were some people who gave the thumbs up and applauded and smiled. But for the most part, people just watched as they passed by.

Now, they're here in Baghdad, awaiting orders what to do -- Carol.

COSTELLO: All right, thanks.

Mike Boettcher updating us live this morning.

Now to the difficult issue of governing Iraq.

Our Bill Schneider looks at what it may take for Washington to win the peace now that it's apparently won the war.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our victory in Iraq is certain, but it is not complete.

WILLIAM SCHNEIDER, CNN CORRESPONDENT (voice-over): What does the U.S. have to do to complete the mission? It boils down to three things: provide humanitarian assistance to Iraqis who need food, water, shelter and medical supplies; maintain law and order so Iraqis have a sense of security; turn over power to a government that has legitimacy with the Iraqi people, one that is purged of dangerous elements linked to Saddam Hussein's regime, but is not seen as a U.S. puppet.

Achieving those tasks involves several thorny issues. What role will the United Nations play? How much will it cost and who's going to pay for it? It's not clear that either the U.N. or other countries will be willing to share the costs. It will take several years to restore full oil production in Iraq and the Bush administration says Iraq's oil money will be used only for the Iraqi people, and presumably not for U.S. military costs.

How long will the U.S. stay in Iraq?

BUSH: We will remain in Iraq as long as necessary and not a day more.

SCHNEIDER: The longer the U.S. stays, the more it will look like a military occupation. And remember, Iraq has been governed by the Turks, the British, a king, and, for the last 24 years, a totalitarian dictator, but never a democracy.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And we may get a response today to new U.S. accusations that the former head of Iraq's intelligence service might be in Syria.

CNN's senior international correspondent Sheila MacVicar filed this report just a short time ago.

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN CORRESPONDENT: The news that U.S. administration officials are now saying that a former chief of an Iraqi intelligence organization is here in Damascus will, of course, leave Syrian officials with some big questions to answer a little later on this morning. They have consistently denied either harboring or giving safe passage to any senior official from the regime, or even family members from Iraq's regime, trying to transit Syria. We have heard consistent warnings from U.S. officials over the last few days that if Syria is giving safe haven to anyone that's on the U.S. list, they should consider giving them up, and that if there are people seeking to enter Syria, they should make clear to them that their borders are closed.

Now, in this instance, the U.S. administration is talking about Farouk Hijazi. Mr. Hijazi was most recently Iraq's ambassador to Tunisia, based in the Tunisian city of Tunis. Prior to that, he was Iraq's ambassador to Turkey. In the late 1990s, he was also the point person between Saddam Hussein's regime and Osama bin Laden at a time when the United States was engaging with the Taliban and appeared certain to -- appeared ready, rather, to offer the Taliban recognition in exchange for the expulsion of Mr. Bin Laden.

Osama bin Laden went looking for another place to go and came into contact with the Iraqis. Farouk Hijazi was the person that was sent to meet with him, contacts that eventually foundered on grounds of mutual suspicion and distrust. And, as we all know, of course, Osama bin Laden remained in Afghanistan until the fall of 2001.

Now, the question now for the Syrians is is Mr. Hijazi here? He was reportedly traveling on a diplomatic passport. What's the value of that diplomatic passport and the immunity it would offer if it comes from a regime that is no longer in existence? The U.S. has a particular interest in Mr. Hijazi and that is because they suspect him of involvement in an early 1990s plot to assassinate the first President Bush.

Big questions for the Syrians to answer today.

Sheila MacVicar, CNN, Damascus.

(END VIDEOTAPE)

COSTELLO: Lots of questions remain. The latest killings in Iraq are not linked to combat, but apparent crowd control. At least 10 Iraqis were reportedly killed and 16 injured in a fight between Marines and a stone throwing crowd in Mosul. A CENTCOM official quoted by the "New York Times" denies reports U.S. troops shot into the crowd. A CENTCOM spokesman also says the Marines were fired on, so they shot back.

We'll get the latest on the military situation when we take the U.S. Central Command national briefing live from Doha, Qatar. Of course, that happens at 7:00 a.m. Eastern, 4:00 Pacific Time.

Just ahead, his story has touched the hearts of millions and it's a jolting reminder of the cruelties of war. Remember the Iraqi boy maimed during a coalition bombing that killed his family? We'll tell you how the world has reached out to comfort him.

Plus, CNN has learned new details about the amazing rescue of POW Private Jessica Lynch. We'll tell you about it.

And later, cleaning up some dangerous leftovers abandoned by the Iraqi military.

We'll be right back.

COMMERCIAL

COSTELLO: One of the most telling images of war, a U.S. Marine taking a nap in one of Saddam Hussein's many palaces. He looks pretty comfortable.

Well, we told you this week about one 12-year-old boy, an innocent caught in the wave of bullets and bombs early in the war. His story is tragic and we're about to show you how far it has gone -- how it has gone, rather, for Ali Ismaeel Abbas Hamza. We caution you, though, some of what you see is quite graphic.

(BEGIN VIDEOTAPE)

(REPEAT OF EARLIER SEGMENT AIRED DURING 04:00-05:00 HOUR)

(END VIDEOTAPE)

COSTELLO: And he's in Kuwait this morning. We'll get an update again for you later.

Coming up, intriguing details on the inside help the CIA got hours before the rescue of Private Jessica Lynch.

We'll be right back.

COMMERCIAL

COSTELLO: 5:23 Eastern time.

Welcome back.

CNN is learning new details about the rescue of POW Jessica Lynch. An Iraqi spy on the CIA's payroll played a key part in her return. Armed with a video camera, he snuck into the Iraqi hospital where Lynch was being held and mapped a route to get her out of there.

CNN's Barbara Starr says it helped make the rescue mission a success.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): CNN has learned that just hours before Private First Class Jessica Lynch was rescued by special forces, the CIA sent a trusted Iraqi operative already on the agency payroll into the hospital with a secret video camera provided by the Pentagon. His mission? To tape the building's interiors, critical information for planning the daring raid, a rescue the team would then tape themselves as it unfolded.

In the 72 hours before the April 1st rescue, the U.S. intelligence community began to hear whispers of Jessica Lynch's location. At least two enemy prisoners of war offered some information indicating she had been at another location in Nasiriya. But none of that could be verified.

Then a local Iraqi man informed nearby Marines that Jessica Lynch was at the hospital. His information needed to be verified.

But the CIA and the military were already working frantically on a number of leads, all pointing to the hospital in Nasiriya. The Defense Intelligence Agency obtained hospital blueprints for the commando team. It was then decided to risk sending in the Iraqi operative with a hidden video camera.

The rescue team was actually a group of special forces formed to hunt and capture regime leaders. They were diverted to this mission. It was Navy SEALS that went into the hospital, while Army Rangers provided outside security and the Marines staged a diversion. At the same time, Air Force special forces were waiting outside to take Jessica Lynch to safety.

(on camera): The mission went off without a hitch. Indeed, by the time the special forces team got there, most Iraqi fighters had deserted the hospital and the role of the CIA operative would remain hidden until now.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: And we'll hear about being in the heat of battle at the top of the next hour. Some of those wounded U.S. troops are holding a news conference and we'll take you live to Germany to Landstuhl Regional Medical Center, where many of those troops are receiving treatment. We'll hear their stories. That will be live at the top of the next hour on DAYBREAK.

An update of the hour's top stories coming up.

And later, making it possible for those outside Baghdad to communicate to those within.

COMMERCIAL

COSTELLO: 5:28 Eastern Time. Here are the latest developments at this hour.

The fugitive mastermind of the 1985 hijacking of the Achille Lauro cruise ship was captured Monday near Baghdad by U.S. forces. That's according to Central Command. Palestinian official Saeb Erakat, though, says the arrest is a violation of the 1993 Oslo Peace Accords.

Twelve-year-old Ali arrived at a Kuwait hospital early today. The boy lost his arms and most of his family in an air strike. He was also seriously burned. The Limbless Association of Britain tells CNN that Ali was among a group of children flown by the United States to Kuwait for medical treatment.

Secretary of State Colin Powell says the U.S. has no designs on attacking Syria, but he warns Syria could face sanctions if it gives sanctuary to people the U.S. calls war criminals. U.S. officials charge that Iraq's former head of intelligence has taken refuge in Damascus.

(OTHER NEWS HEADLINES)

COSTELLO: And good morning to you.

It's Wednesday, April 16th.

I'm Carol Costello at CNN's global headquarters in Atlanta.

One dividend from the war in Iraq has been to tie up an 18-year- old loose end, namely the 1985 Achille Lauro hijacking. For the past nine years, Abu Abbas, the mastermind behind the terror attack, has been living in Iraq under the protection of Saddam Hussein. The war suddenly changed that.

CNN national security correspondent David Ensor brings us up to date.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): CNN was the first to report that Abu Abbas, a wanted terrorist since 1985, was captured by U.S. special forces Monday night in a compound on the southern outskirts of Baghdad, acting on a tip from U.S. intelligence. Abu Abbas, the nom de guerre of Muhammad Abbas, was taken along with several others, U.S. officials say, and documents and passports. The fact that Saddam Hussein's government gave him sanctuary was cited recently by President Bush as evidence of Baghdad's ties to terrorists.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Iraq has also provided safe haven to Abu Abbas, who was responsible for seizing the Achille Lauro and killing an American passenger.

ENSOR: Leon Klinghoffer, seen here with his wife, was shot in full view of his wife and then his wheelchair pushed overboard off the deck of the Italian cruise ship, the Achille Lauro, which the terrorists had just seized. Abbas was found guilty of murder by an Italian court. U.S. officials say there is no decision yet on his fate. Piracy and conspiracy charges in the U.S. have expired, but could be refiled, officials say.

In the years since 1985, Abbas has lived at various times in Tunisia, Libya and the Gaza Strip, before settling in Iraq. In a 1996 interview with CNN, he said they never intended to kill anybody.

ABU ABBAS (THROUGH TRANSLATOR): The media didn't tell the world that Abu Abbas saved the lives of 600 passengers, only that a disabled man was killed.

ENSOR (on camera): Abu Abbas was not a serious threat to the U.S. or others. But officials say his capture could send a message to terrorists around the world that no matter how long it takes, the U.S. will get them in the end.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And the fact that Abbas is now in U.S. custody is somewhat comforting to the Klinghoffer family. His daughters did pass us a statement and this is part of what it says. It says, "We are delighted that the murderous terrorist, Abu Abbas, is in U.S. custody. Bringing Abbas to justice will send a strong signal to terrorists anywhere in the world that there is no place to hide."

There was a different reaction, though, to the capture from Saeb Erakat. The Palestinian cabinet member says the U.S. violated the Oslo Peace Accords when it seized Abbas. That agreement specified no member of the Palestine Liberation Organization will be arrested for an action before September of 1993. The Achille Lauro incident happened in 1985.

Another late breaking development to pass along to you, Italy's justice minister says he will ask for the extradition of Abu Abbas. An arrest warrant had been issued for Abbas after he somehow slipped out of Italy back in 1985.

On to Syria now. The U.S. says the former Iraqi intelligence chief has taken refuge in Damascus and the U.S. is worried other Iraqi leaders are there, too. For more on how the U.S. is dealing with Iraq's Western neighbor here, CNN's State Department correspondent Andrea Koppel.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN CORRESPONDENT (voice-over): One day after a chorus of Bush administration officials threatened the regime of Syrian President Bashar al-Assad, Secretary of State Powell appeared before foreign journalists to play down any suggestion Syria was next on a U.S. hit list.

COLIN POWELL, SECRETARY OF STATE: But there is no list. There is no war plan right now to go attack someone else, either for the purpose of overthrowing their leadership or for the purpose of imposing democratic values.

KOPPEL: No war plan right now, but still a softer message than Monday, when Defense Secretary Donald Rumsfeld refused to rule out Syria as a target.

QUESTION: Should Syria understand that one of the potential consequences of their actions that you're talking about today is military action by the United States?

DONALD RUMSFELD, SECRETARY OF DEFENSE: I didn't say anything like that.

QUESTION: But could you respond to that, though? Is that something that they should consider as a potential... RUMSFELD: I think what I've -- I've said what I've said and I've stated facts, and that's what I tend to do. In terms of policy, that's for others.

KOPPEL: Tuesday, Rumsfeld demurred.

RUMSFELD: The president has spoken on it. Secretary Powell has spoken on it. I'll leave that to them.

BUSH: And there's no doubt we're going to meet those priorities.

KOPPEL: President Bush has not spelled out potential consequences for the Syrian regime. But Powell repeated U.S. warnings to Syria not to harbor Iraqi war criminals, to end its alleged chemical weapons program and support for terrorists. The U.S. also believes Iraqi chemical and biological weapons may have been moved into Syria for safekeeping.

POWELL: We hope that Syria understands now that there is a new environment in the region with the end of the regime of Saddam Hussein and that Syria will reconsider its policies of past years.

KOPPEL (on camera): At the moment, the Bush administration's policy seems to be to try to use its victory in Iraq to scare Syria into cooperating without closing the door on possible military action. As one senior administration official put it, the U.S. has no intention of using force against Syria, unless, "Syria does something really stupid and fires on American troops."

Andrea Koppel, CNN, at the State Department.

(END VIDEOTAPE)

COSTELLO: And some signs of normalcy are returning to Baghdad with the opening of more shops.

But as CNN's Nic Robertson reports, merchants must deal with shortages and security concerns.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN CORRESPONDENT (voice-over): With a smile and a blast at Saddam, Mohammed (ph) reopens his bookstore. Neighbors quick to point out he's not a looter. After a month's closure, dust thick on the shelves he prudently emptied before he left. Gone so long the clock stopped. But now, he says, it's time to restart his business.

Today it's safer, he says. I didn't hear any tank shells or bullets. Next door, Mohammed (ph) the grocer is back at work. Candy and soda all he can offer for now.

MOHAMMED: We are afraid. Any time, any, but when the night is coming, we are closing. And I don't know the next day. I see my shop, my shop safe or robbed. ROBERTSON: At the bakery, war didn't stop Abu Achmed (ph) working. But now he says making bread is getting harder. "It's very difficult to do our job. We have a shortage of everything," he says. "Electricity, flour, fuel, water, even salt."

At the counter, customers wait patiently.

UNIDENTIFIED MALE: Losing the dignity of the Arab.

ROBERTSON: But seeing us, many vent pent up anger at the lack of electricity and security.

UNIDENTIFIED MALE: I wish that I am nothing now. I wish that I have no mind to think, not my country, that I lost my country. Who can help me to feel that my country is still there?

ROBERTSON (on camera): Most stores here remain locked up and shuttered. Many businessmen, it seems, still feel it's too dangerous to open up just yet. The situation is still far from normal.

(voice-over): Increasing their efforts to restore that normality, U.S. Marines are now patrolling some Baghdad streets on foot, a more visible presence designed to help reduce looting. But unlike British forces in the south, these U.S. Marines still in full combat gear. To help restore water and other much needed services, Marines have been meeting with city planners and engineers. The shift away from fighting the war apparently not topping the thinly spread U.S. force from its original mission. This day, another weapons cache discovered by the Marines in the center of the capital.

Possibly, however, the long days taking their toll. This Marine snatches a quick nap in a chair at Saddam's wife's palace. Most in the city, though, would likely prefer the Marines weren't this stretched and there were enough to get the job done quickly.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

COSTELLO: And I want to remind you about two news conferences you will not want to miss this morning. American servicemen wounded in Iraq will speak at the Landstuhl Regional Medical Center in Germany. That begins about 30 minutes from now at 6:00 a.m. Eastern. CNN will bring it to you live. And about an hour later, Central Command will hold its daily news briefing in Doha, Qatar. That's at 7:00 Eastern. CNN will bring you that live, too.

When our coverage continues now, though, the queen of Jordan speaks out against U.S. military planners for their approach to the war in Iraq. We'll tell you what she has to say.

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