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CNN Live At Daybreak
A Deadly Attack in Baghdad; Reports Iraqi Insurgents Have Killed Second Hostage
Aired September 23, 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: The angry streets of Baghdad's Sadr City on another dangerous day in Iraq.
It is Wednesday, September 22.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, a deadly attack in Baghdad. Just about three hours ago, insurgents set off a car bomb near a police recruiting site. At least seven people have been killed, nearly 50 injured.
Hostage Jack Hensley would have celebrated his 49th birthday today. Instead, his family is facing reports that Iraqi insurgents have killed him. U.S. and Iraqi officials now say a headless body was discovered in Baghdad. No confirmation yet that it is Hensley.
On Capitol Hill, the Senate is ready to vote today on the nomination of Florida Congressman Porter Goss to head the CIA. Senators will first debate for about six hours -- Chad.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
Taking a look at all of these spinning wheels out here. Actually, we're seeing the wheels on the bus go round and round up here. We have Karl here, we have Jeanne here, obviously Lisa back here and maybe the beginning of Matthew back out to the west of there. Obviously an active day in the Atlantic, but right now at least nothing making its way to the U.S.
It does look like Jeanne could be turning to the west here. We'll have to watch that.
(WEATHER REPORT)
COSTELLO: Unfortunately, a busy day this morning in Iraq.
Let's get you up to speed in our "Situation Report."
U.S. forces backed by war planes and tanks battle insurgents in the Baghdad slum of Sadr City. Hospital officials tell us at least 10 people were killed and nearly 100 wounded. The fighting broke out as American and Iraqi forces searched for weapons caches. In western Baghdad, a car bomb attack targets Iraqi police recruits. At least seven are dead. Dozens of others are wounded. Soldiers found and safely detonated a second car bomb.
And farther south, in Nasiriyah, the U.S. military says a Black Hawk helicopter crashed shortly after takeoff. Three car bombs were hurt. An investigation now under way.
She's known as "Dr. Germ" and Iraqi officials say they plan to release the jailed scientist. U.S. officials say they're still reviewing the case.
Just who is "Dr. Germ?" Her real name is Rihab Taha. She got the nickname "Dr. Germ" because she's the former head of an Iraqi biological weapons program. She's married to Iraq's former oil minister, Amir Muhammad Rashid, and she was schooled in Britain in the late 1970s. The Iraqis are not saying if the planned release had anything to do with the recent demands from terrorists, who seized three Westerners in Baghdad.
CNN's Walter Rodgers brings us up to date on the hostage crisis.
(BEGIN VIDEO TAPE)
WALTER RODGERS, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): The Islamist militants have now killed two of the three hostages they kidnapped from an upscale Baghdad neighborhood Thursday a week ago. The second man killed is Jack Hensley, another private contractor from Georgia. Both men were Americans. The kidnappers later issued a statement saying: "Thank God the lions of Tawhid and Jihad have slaughtered a second American hostages."
From their statement, these Muslim militants appear to see themselves in a religious war with the West, or at least with the United States and Britain. Their statement says: "Bush eat your heart out. Blair may cry tears of blood. Glory be to God."
The remaining hostage in this trio is Kenneth Bigley, a British subject. And he, too, faces a death threat.
This string of executions began Monday when the Tawhid and Jihad group beheaded this American hostage, Eugene Armstrong. They made a grisly videotape of the decapitation and say they have a video of the second killing. Sources have told CNN a second headless body has now been found in Baghdad.
(on camera): The demands of this gang of Islamist militants are simple -- release all Iraqi women now in prison. That seems all but moot, however, with but one hostage left alive. Still, the psychological impact of these killings leaves most of the few remaining Westerners here locked in a prison of fear.
Walter Rodgers, CNN, Baghdad.
(END VIDEO TAPE) COSTELLO: And people in Britain are now praying for hostage Kenneth Bigley's life. He's the next hostage marked for death in Iraq. A candlelight vigil drew hundreds of people at Bigley's hometown of Liverpool. In addition to the prayers, there were also gasps of horror and tears as people learned of reports that Iraqi insurgents had killed a second American hostage.
Bigley's family is pleading with British leaders to intervene and they're also lashing out at the British government's Iraq policy.
For more on that and the case of the woman known as "Dr. Germ," let's go live to London and CNN European editor Robin Oakley -- good morning, Robin.
ROBIN OAKLEY, CNN CORRESPONDENT: Good morning, Carol.
And as you say, the media and the people in Britain are really offering nothing but prayers now for Kenneth Bigley, the remaining hostage under death threat from Abu Musab al-Zarqawi and his group.
There has been horror across the community at the decapitation of two American fellow hostages. Emotional appeals, of course, from the family to Prime Minister Tony Blair. They say that he is the only man who can make any difference in this situation.
Mr. Blair and Foreign Secretary Jack Straw have both telephoned the family, insisting that they're doing everything they can. But it's being made quite clear by the British authorities that they're not in the business of doing deals with any terrorists because, of course, their fear is that the moment they do that, they will precipitate more kidnaps and more death threats -- Carol.
COSTELLO: You know, we got word of a recent poll that 71 percent of the British people want a date where British troops will leave Iraq.
Is it getting worse in Britain as far as support, if there ever was any support for the war in Iraq?
OAKLEY: Yes. There is strong division in Britain and has been all through on the basic question of the war in Iraq. But when it comes to episodes like 9/11 or a particularly horrific death brought about by the terrorists, then people tend to rally to the government of the day. And opinion pollsters tell me that this -- it's not likely that anything happening to Kenneth Bigley now is going to immediately make life worse for Tony Blair. But there is this growing pressure to bring back British troops, particularly when elections are held in Iraq in January.
Tony Blair faces his party conference next week. The demands for an early recall of British troops will be led by former Foreign Secretary Robin Cook. And every episode like this is adding to the pressure on Tony Blair -- Carol.
COSTELLO: Robin Oakley live from London this morning.
Thank you.
As the hostage crisis goes on, so are the family vigils. Jack Hensley's family trying to cope with reports of his death. If it's confirmed, Hensley would be the second American murdered in Iraq in as many days.
Reporter Doug Evans of our Atlanta affiliate, WAGA, joined Hensley's family.
(BEGIN VIDEO TAPE)
UNIDENTIFIED MALE: Great.
What's the name of the team?
DOUG EVANS, WAGA CORRESPONDENT (voice-over): Outside the family's home, Sarah Hensley's softball team lit candles and lifted prayers. They say Jack Hensley was devoted to his 13-year-old daughter and her sport, keeping track of their standings by Internet from Iraq.
LAURA HAMBRICK, NEIGHBOR: Even though he couldn't be there, he was there in her -- his thoughts. He loved her dearly.
EVANS: Close family friends emerged from the Hensley home just after 6:00 p.m. It was another day keeping an unbearable vigil inside and now with news that an American hostage had been killed by his captors, the family's wait turned to the official confirmation.
JAKE HALEY, FAMILY SPOKESMAN: It's very somber, you know? I mean we're kind of expecting, we're still shocked.
EVANS: Like the rest of the world, they've waited for news of Jack Hensley. A family spokesman tells Fox 5 the White House called to discuss the efforts made in what the family says would have been a miracle.
(on camera): What was the nature of that conversation with the White House
HALEY: It was to let us know that they have our support and they're trying legitimately to do everything that they can. And I feel in my heart that everybody that was involved in this operation has done everything that they can do.
EVANS (voice-over): The family is asking people to visit a Web site dedicated to Jack Hensley's life, www.jackhensley.org. And although no official confirmation had yet been made, his close family friends seemed resigned to his fate.
UNIDENTIFIED MALE: As rough as losing any close family member, any -- you couldn't have lost a better friend.
(END VIDEO TAPE)
COSTELLO: Again, that story from reporter Doug Evans from our affiliate, WAGA, here in Atlanta.
The hostage crisis shows that Americans are, indeed, on dangerous ground in Iraq. And that brings us to our e-mail Question of the Day. Should U.S. contractors temporarily be restricted from working in Iraq? Is it time for them to go, to get out of Iraq for just a while?
Drop us a line at daybreak@cnn.com. That's daybreak@cnn.com.
And be sure to join us for a special look at the strategy for Iraq. That's on a special Iraq edition of "NEWSNIGHT." And, of course, that airs at 10:00 p.m. Eastern right here on CNN.
Forty-one days and counting until the November presidential election.
Here is the latest from the campaign trail now.
President Bush heads to the battleground state of Pennsylvania today. First, he'll wrap up his visit to the U.N. in New York and then he'll fly to suburban Philadelphia to talk about education. He'll also visit Latrobe, Pennsylvania.
John Kerry is in another battleground state, and that would be Florida. He'll head from Orlando to West Palm Beach for a town hall meeting and then he'll move on to Columbus, Ohio.
Senator Kerry has been dishing out some heavy criticism of President Bush. But he's also showing a lighter side.
Our senior political correspondent, Candy Crowley, has been covering the Kerry campaign.
(BEGIN VIDEO TAPE)
CANDY CROWLEY, CNN CORRESPONDENT: (voice-over): The president's U.N. speech inspired John Kerry's first news conference in almost seven weeks.
SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: The president of the United States stood before a stony-faced body and barely talked about the realities at all of Iraq after lecturing them, instead of leading them, to understand how we are all together with a stake in the outcome of Iraq.
CROWLEY: In a speech Monday, Kerry had urged President Bush to use the gathering of world leaders in New York to reach out for help in Iraq.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The U.N. and its member nations must respond to Prime Minister Allawi's request and do more to help build an Iraq that is secure, democratic, federal and free.
CROWLEY: That, Kerry complained, is not what he had in mind.
KERRY: You don't just stand up in front of folks in the midst of a sort of running through all the issues speech and pretend that that's the way you lead people to the table.
CROWLEY: The Kerry campaign thinks it's on to something. The Senator's acid review of the state of war in Iraq got blanket coverage and rave reviews from fellow Democrats.
It's too early to tell whether this new heat will warm up Kerry's poll numbers, but the campaign was enthused enough to give it another go-round Tuesday, refusing to be thrown off message with suggestions that Kerry has been inconsistent about Iraq.
KERRY: No. I have one position on Iraq. One position. What they should be confused about is what President Bush has done.
CROWLEY: Still, even as he goes alpha male on the stump, Kerry is tending to his softer side, yucking it up on Letterman for the show's highest rated season opener since 1993.
(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN," COURTESY CBS)
KERRY: Eliminate all income taxes. Just ask Teresa to cover the whole damn thing.
(END VIDEO CLIP)
CROWLEY: And dropping by for a little "Regis and Kelly" in the morning.
KERRY: For any undecided voter in America, Regis, I have five words for them.
REGIS PHILBIN, HOST: Yes? And?
KERRY: Secretary of State Regis Philbin.
PHILBIN: Oh.
CROWLEY: Still to come, a chat with Dr. Phil.
Candy Crowley, CNN, Jacksonville, Florida.
(END VIDEO TAPE)
COSTELLO: CNN's election express bus is rolling toward Palm Beach, Florida for John Kerry's town hall meeting this afternoon. So be sure to join Judy Woodruff for that at 3:00 Eastern, 1:00 Pacific.
Have you heard enough about CBS and the now discredited documents on President Bush's National Guard service? Because the story is getting even more complicated.
The attorney for the man who gave CBS News those documents does not have firsthand knowledge of the events. But he is sharing what he says Bill Burkett told him about his dealings with CBS.
Here it is. (BEGIN VIDEO CLIP)
DAVID VAN OS, BILL BURKETT'S ATTORNEY: They promised him that they would keep his identity absolutely confidential. And they promised him that they would make sure that the documents were authentic and that they would not use them unless their studies of the documents proved to them that they were authentic.
(END VIDEO CLIP)
COSTELLO: Burkett, by the way, is also telling a second clock and dagger version of how he got those documents. His lawyer says the story sounds "far-fetched."
A brutal police beating. The aftermath caught on tape. We'll have details on what may have led to this at 45 minutes after the hour.
Plus, the riveting testimony in the Scott Peterson murder trial. Get a front row seat in the courtroom in five minutes.
And you won't want to miss the amazing Joey. This little dog can skateboard, drive, jump rope and more. Yes, I said drive. He'll crack you up. That's at 55 minutes past.
But first, here's a look at what else is making news this Wednesday morning.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It's 5:17 Eastern.
Here's what's all new this morning.
At least 10 militants were killed during clashes with U.S. forces in the Sadr City area of Baghdad. The fighting broke out after U.S. and Iraqi forces detained several of Muqtada al-Sadr's closest aides.
NASA has extended funding for the Mars rover mission for another six months. The Rovers Spirit and Opportunity completed their primary mission in April, but they haven't worn out yet.
In money news, store owners don't expect you to buy as much stuff this holiday season. The National Retail Federation says it's expecting a smaller jump in sales this season as compared to last year. Higher interest rates and energy costs are to blame.
In culture, many big names have signed on for an all star tribute concert to remember Ray Charles. Stevie Wonder, Usher and Elton John are among the stars who have agreed to take part in the October 8 show in Los Angeles. In sports, Jason Giambi hit his first homerun since June and it helped the Yankees keep their distance in the American League Eastern Division. The Yankees lead the Red Sox by four and a half games now -- Chad.
MYERS: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: The lead detective investigating Laci Peterson's disappearance says he had more than enough reason to suspect her husband. And he even confronted Scott Peterson in a phone call. That call was one of the details that captured the jury's attention.
CNN's Ted Rowlands tells us about it.
(BEGIN VIDEO TAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Jurors were riveted and at least one wept as Scott Peterson talked about his relationship with his wife during a television interview played in court.
Lead detective Craig Grogan spent a second day on the stand detailing the case against Scott Peterson. Grogan testified he thought Peterson was involved from the beginning, and, more than a month after Laci Peterson was reported missing, he confronted Scott Peterson on the phone about it.
(BEGIN AUDIO CLIP)
CRAIG GROGAN, LEAD DETECTIVE: I mean, you and I both know what happened to Laci.
SCOTT PETERSON: Do you know what happened to her?
GROGAN: We both do.
PETERSON: Craig, I need to know what happened to her. Are you telling me you know what happened to her?
GROGAN: Scott, I mean, let's be serious with one another.
PETERSON: Craig, tell me what -- do you know what happened to her? Do you know where she is?
GROGAN: Well, I know where we're looking for her. And...
PETERSON: Where?
GROGAN: ... and I think we're probably going to find her over there in the Bay.
PETERSON: Oh...
GROGAN: It's a matter of time. PETERSON: ... Craig, you -- I had nothing to do with Laci's disappearance. Unreal. OK, I'm going to go.
GROGAN: Scott, what I'm offering you is an opportunity here to end all of this nonsense.
PETERSON: I'm going to find her, Craig.
(END AUDIO CLIP)
ROWLANDS: The prosecution also played videotapes of Peterson talking to the media, including this interview with Diane Sawyer, where he lies about telling the police that he was having an affair.
(BEGIN VIDEO CLIP FROM ABC NEWS, COURTESY ABC)
DIANE SAWYER, HOST: Did you tell police?
PETERSON: I told the police immediately.
SAWYER: When?
PETERSON: That was the first night we were together, the police, I spent with the police...
SAWYER: You told them about her?
PETERSON: Yes.
(END VIDEO CLIP)
COSTELLO: The day after the interview, Detective Grogan called Scott Peterson. It was in that call that Peterson admitted to lying to police about his affair.
In other news across America this morning, do you remember the singer Cat Stevens? Well, so does the U.S. government. He's going back to London today after being denied entry into the United States. Now known as Yusuf Islam, he was pulled off a flight from London to Washington, D.C.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: They said, you know, get ready to land. And then they said, "Welcome to Bangor." And we thought they were joking. We had no idea that we'd been diverted.
UNIDENTIFIED MALE: Here you've got this plane full of passengers. Everybody stayed remarkably calm. I really -- I was really kind of surprised by that because it was a situation where you'd think after a while people would get a little bit edgy.
(END VIDEO CLIP)
COSTELLO: The plane was diverted to Maine after Islam, Cat Stevens, popped up on a terror watch list. The Transportation Security Administration says the 56-year-old Islam was recently added to the list because of financial support to organizations believed to be aiding terrorism. He gives a lot of money to charity organizations, if you know what I mean.
If you flew anywhere in June, the government wants to know. The Transportation Security Administration wants all 77 U.S. air carriers to hand over the names of travelers. The TSA wants to use the personal information from June to test a new screening system. The so-called Secure Flight System matches passenger information against terror watch lists.
Police are still searching for a missing 13-year-old Florida girl. She may have been taken to Georgia by the registered sex offender. An amber alert was issued Sunday for Briana Schultheis. Police say 31-year-old Raymond Lewis had been hired to do odd jobs by the girl's parents and the two may have developed a relationship.
Happy autumn. Today is the autumnal equinox. That means both the day and night are exactly 12 hours long. But for people south of the equator, it's the first day of spring.
What's hot on the Web site, straight ahead.
Plus...
(BEGIN VIDEO CLIP FROM "60 MINUTES," COURTESY CBS NEWS)
MIKE WALLACE, HOST: I'm Mike Wallace.
MORLEY SAFER, HOST: I'm Morley Safer.
ED BRADLEY, HOST: I'm Ed Bradley.
DAN RATHER, HOST: (UNINTELLIGIBLE).
(END VIDEO CLIP)
COSTELLO: Aw, the jokes just keep on coming as Jay Leno weighs in on the CBS docuflap.
And keep those e-mails coming. Should U.S. contractors temporarily be restricted from working in Iraq? The address, daybreak@cnn.com.
And you're watching DAYBREAK for a Wednesday.
(COMMERCIAL BREAK)
MYERS: Web clicks. What are you clicking on this morning?
COSTELLO: Yes, we're interested, as I sit...
MYERS: What are you drinking over there?
COSTELLO: I'm drinking the strongest coffee that Starbucks has. I had a late night last night. But let's talk about Web clicks, shall we?
MYERS: So did Cat Stevens, I guess.
COSTELLO: Well, you know, the thing that's most upsetting to me about this story, we got into it a little bit before...
MYERS: Yes. There you go.
COSTELLO: Cat Stevens is on this flight from London to Washington-Dulles. His name -- because he's adopted Islam, and he did that like -- a Muslim name, I should say, he did that a long time ago, in the '70s.
MYERS: Yes.
COSTELLO: But his name turns up on this terror watch list...
MYERS: Because he has known associations and financial support to organizations believed to be aiding terrorism. That's according to the government officials.
COSTELLO: Yes. So his name is on this watch list. He gets on the plane and then they notice his name is on the watch list.
MYERS: When they're over the Atlantic.
COSTELLO: Yes.
MYERS: Not like on the ground.
COSTELLO: Yes.
MYERS: It scares me a little bit.
COSTELLO: So, that's the most upsetting thing still.
MYERS: So they turned it around. They landed the plane in Bangor, Maine and...
COSTELLO: Yes. And he's off the plane now and he's headed back to Britain, somehow, some way, we don't know how.
The second most clicked on story, "Men Break Into Lotto Winner's Home With Body Inside."
MYERS: This guy, remember this Jack Whittaker guy from West Virginia who won all this money?
COSTELLO: Yes.
MYERS: He's the most unlucky guy.
COSTELLO: He is. He wasn't home at the time and he had nothing to do with this man's death. An 18-year-old guy found dead inside his home. It was a friend of his granddaughter. MYERS: Some kind of (UNINTELLIGIBLE).
COSTELLO: And then these other guys break into the house and steal everything and leave the dead body there. It was just a bizarre story.
MYERS: That they (UNINTELLIGIBLE) doing.
And then a guy falls in the Grand Canyon and his wife didn't hear it. So...
COSTELLO: Well, she was walking in front of him and she turned around and he wasn't there.
MYERS: Yes.
COSTELLO: And he fell 500 feet. They still haven't recovered the body.
MYERS: They couldn't get it because the winds were too strong in the Grand Canyon yesterday.
COSTELLO: Yes. So a real mystery there.
MYERS: So those are the three that you're clicking on this morning.
COSTELLO: All right.
And thanks for that.
We've been telling you how CBS is in damage control mode over its reporting on President Bush's National Guard service. Well, here's Jay Leno's spin on the situation.
(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)
JAY LENO, HOST: I'm sure you all heard about the beach at CBS, which stands for can't back story, by the way. (UNINTELLIGIBLE).
(LAUGHTER)
LENO: Well, CBS now admits that, yes, Bush National Guard memo was a fake. And, of course, this has caused a huge shakeup at CBS. Now they're starting to question other shows, like does everybody really love Raymond?
(END VIDEO CLIP)
COSTELLO: Poor Dan Rather, though. He just must be in absolute hell these days.
MYERS: Yes, he is...
COSTELLO: Because you know he feels bad about it. MYERS: Of course. Of course.
COSTELLO: It's just incredible.
MYERS: And he's still an icon to me, you know? Whether this happened or not, whatever.
COSTELLO: Well, he's got more trouble to come, I'm sure.
MYERS: Oh, yes.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
He shoots, he scores and he's heading for stardom. Later this hour, a playful pooch shows us some amazing tricks.
Stay tuned.
(COMMERCIAL BREAK)
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Aired September 23, 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: The angry streets of Baghdad's Sadr City on another dangerous day in Iraq.
It is Wednesday, September 22.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, a deadly attack in Baghdad. Just about three hours ago, insurgents set off a car bomb near a police recruiting site. At least seven people have been killed, nearly 50 injured.
Hostage Jack Hensley would have celebrated his 49th birthday today. Instead, his family is facing reports that Iraqi insurgents have killed him. U.S. and Iraqi officials now say a headless body was discovered in Baghdad. No confirmation yet that it is Hensley.
On Capitol Hill, the Senate is ready to vote today on the nomination of Florida Congressman Porter Goss to head the CIA. Senators will first debate for about six hours -- Chad.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
Taking a look at all of these spinning wheels out here. Actually, we're seeing the wheels on the bus go round and round up here. We have Karl here, we have Jeanne here, obviously Lisa back here and maybe the beginning of Matthew back out to the west of there. Obviously an active day in the Atlantic, but right now at least nothing making its way to the U.S.
It does look like Jeanne could be turning to the west here. We'll have to watch that.
(WEATHER REPORT)
COSTELLO: Unfortunately, a busy day this morning in Iraq.
Let's get you up to speed in our "Situation Report."
U.S. forces backed by war planes and tanks battle insurgents in the Baghdad slum of Sadr City. Hospital officials tell us at least 10 people were killed and nearly 100 wounded. The fighting broke out as American and Iraqi forces searched for weapons caches. In western Baghdad, a car bomb attack targets Iraqi police recruits. At least seven are dead. Dozens of others are wounded. Soldiers found and safely detonated a second car bomb.
And farther south, in Nasiriyah, the U.S. military says a Black Hawk helicopter crashed shortly after takeoff. Three car bombs were hurt. An investigation now under way.
She's known as "Dr. Germ" and Iraqi officials say they plan to release the jailed scientist. U.S. officials say they're still reviewing the case.
Just who is "Dr. Germ?" Her real name is Rihab Taha. She got the nickname "Dr. Germ" because she's the former head of an Iraqi biological weapons program. She's married to Iraq's former oil minister, Amir Muhammad Rashid, and she was schooled in Britain in the late 1970s. The Iraqis are not saying if the planned release had anything to do with the recent demands from terrorists, who seized three Westerners in Baghdad.
CNN's Walter Rodgers brings us up to date on the hostage crisis.
(BEGIN VIDEO TAPE)
WALTER RODGERS, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): The Islamist militants have now killed two of the three hostages they kidnapped from an upscale Baghdad neighborhood Thursday a week ago. The second man killed is Jack Hensley, another private contractor from Georgia. Both men were Americans. The kidnappers later issued a statement saying: "Thank God the lions of Tawhid and Jihad have slaughtered a second American hostages."
From their statement, these Muslim militants appear to see themselves in a religious war with the West, or at least with the United States and Britain. Their statement says: "Bush eat your heart out. Blair may cry tears of blood. Glory be to God."
The remaining hostage in this trio is Kenneth Bigley, a British subject. And he, too, faces a death threat.
This string of executions began Monday when the Tawhid and Jihad group beheaded this American hostage, Eugene Armstrong. They made a grisly videotape of the decapitation and say they have a video of the second killing. Sources have told CNN a second headless body has now been found in Baghdad.
(on camera): The demands of this gang of Islamist militants are simple -- release all Iraqi women now in prison. That seems all but moot, however, with but one hostage left alive. Still, the psychological impact of these killings leaves most of the few remaining Westerners here locked in a prison of fear.
Walter Rodgers, CNN, Baghdad.
(END VIDEO TAPE) COSTELLO: And people in Britain are now praying for hostage Kenneth Bigley's life. He's the next hostage marked for death in Iraq. A candlelight vigil drew hundreds of people at Bigley's hometown of Liverpool. In addition to the prayers, there were also gasps of horror and tears as people learned of reports that Iraqi insurgents had killed a second American hostage.
Bigley's family is pleading with British leaders to intervene and they're also lashing out at the British government's Iraq policy.
For more on that and the case of the woman known as "Dr. Germ," let's go live to London and CNN European editor Robin Oakley -- good morning, Robin.
ROBIN OAKLEY, CNN CORRESPONDENT: Good morning, Carol.
And as you say, the media and the people in Britain are really offering nothing but prayers now for Kenneth Bigley, the remaining hostage under death threat from Abu Musab al-Zarqawi and his group.
There has been horror across the community at the decapitation of two American fellow hostages. Emotional appeals, of course, from the family to Prime Minister Tony Blair. They say that he is the only man who can make any difference in this situation.
Mr. Blair and Foreign Secretary Jack Straw have both telephoned the family, insisting that they're doing everything they can. But it's being made quite clear by the British authorities that they're not in the business of doing deals with any terrorists because, of course, their fear is that the moment they do that, they will precipitate more kidnaps and more death threats -- Carol.
COSTELLO: You know, we got word of a recent poll that 71 percent of the British people want a date where British troops will leave Iraq.
Is it getting worse in Britain as far as support, if there ever was any support for the war in Iraq?
OAKLEY: Yes. There is strong division in Britain and has been all through on the basic question of the war in Iraq. But when it comes to episodes like 9/11 or a particularly horrific death brought about by the terrorists, then people tend to rally to the government of the day. And opinion pollsters tell me that this -- it's not likely that anything happening to Kenneth Bigley now is going to immediately make life worse for Tony Blair. But there is this growing pressure to bring back British troops, particularly when elections are held in Iraq in January.
Tony Blair faces his party conference next week. The demands for an early recall of British troops will be led by former Foreign Secretary Robin Cook. And every episode like this is adding to the pressure on Tony Blair -- Carol.
COSTELLO: Robin Oakley live from London this morning.
Thank you.
As the hostage crisis goes on, so are the family vigils. Jack Hensley's family trying to cope with reports of his death. If it's confirmed, Hensley would be the second American murdered in Iraq in as many days.
Reporter Doug Evans of our Atlanta affiliate, WAGA, joined Hensley's family.
(BEGIN VIDEO TAPE)
UNIDENTIFIED MALE: Great.
What's the name of the team?
DOUG EVANS, WAGA CORRESPONDENT (voice-over): Outside the family's home, Sarah Hensley's softball team lit candles and lifted prayers. They say Jack Hensley was devoted to his 13-year-old daughter and her sport, keeping track of their standings by Internet from Iraq.
LAURA HAMBRICK, NEIGHBOR: Even though he couldn't be there, he was there in her -- his thoughts. He loved her dearly.
EVANS: Close family friends emerged from the Hensley home just after 6:00 p.m. It was another day keeping an unbearable vigil inside and now with news that an American hostage had been killed by his captors, the family's wait turned to the official confirmation.
JAKE HALEY, FAMILY SPOKESMAN: It's very somber, you know? I mean we're kind of expecting, we're still shocked.
EVANS: Like the rest of the world, they've waited for news of Jack Hensley. A family spokesman tells Fox 5 the White House called to discuss the efforts made in what the family says would have been a miracle.
(on camera): What was the nature of that conversation with the White House
HALEY: It was to let us know that they have our support and they're trying legitimately to do everything that they can. And I feel in my heart that everybody that was involved in this operation has done everything that they can do.
EVANS (voice-over): The family is asking people to visit a Web site dedicated to Jack Hensley's life, www.jackhensley.org. And although no official confirmation had yet been made, his close family friends seemed resigned to his fate.
UNIDENTIFIED MALE: As rough as losing any close family member, any -- you couldn't have lost a better friend.
(END VIDEO TAPE)
COSTELLO: Again, that story from reporter Doug Evans from our affiliate, WAGA, here in Atlanta.
The hostage crisis shows that Americans are, indeed, on dangerous ground in Iraq. And that brings us to our e-mail Question of the Day. Should U.S. contractors temporarily be restricted from working in Iraq? Is it time for them to go, to get out of Iraq for just a while?
Drop us a line at daybreak@cnn.com. That's daybreak@cnn.com.
And be sure to join us for a special look at the strategy for Iraq. That's on a special Iraq edition of "NEWSNIGHT." And, of course, that airs at 10:00 p.m. Eastern right here on CNN.
Forty-one days and counting until the November presidential election.
Here is the latest from the campaign trail now.
President Bush heads to the battleground state of Pennsylvania today. First, he'll wrap up his visit to the U.N. in New York and then he'll fly to suburban Philadelphia to talk about education. He'll also visit Latrobe, Pennsylvania.
John Kerry is in another battleground state, and that would be Florida. He'll head from Orlando to West Palm Beach for a town hall meeting and then he'll move on to Columbus, Ohio.
Senator Kerry has been dishing out some heavy criticism of President Bush. But he's also showing a lighter side.
Our senior political correspondent, Candy Crowley, has been covering the Kerry campaign.
(BEGIN VIDEO TAPE)
CANDY CROWLEY, CNN CORRESPONDENT: (voice-over): The president's U.N. speech inspired John Kerry's first news conference in almost seven weeks.
SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: The president of the United States stood before a stony-faced body and barely talked about the realities at all of Iraq after lecturing them, instead of leading them, to understand how we are all together with a stake in the outcome of Iraq.
CROWLEY: In a speech Monday, Kerry had urged President Bush to use the gathering of world leaders in New York to reach out for help in Iraq.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The U.N. and its member nations must respond to Prime Minister Allawi's request and do more to help build an Iraq that is secure, democratic, federal and free.
CROWLEY: That, Kerry complained, is not what he had in mind.
KERRY: You don't just stand up in front of folks in the midst of a sort of running through all the issues speech and pretend that that's the way you lead people to the table.
CROWLEY: The Kerry campaign thinks it's on to something. The Senator's acid review of the state of war in Iraq got blanket coverage and rave reviews from fellow Democrats.
It's too early to tell whether this new heat will warm up Kerry's poll numbers, but the campaign was enthused enough to give it another go-round Tuesday, refusing to be thrown off message with suggestions that Kerry has been inconsistent about Iraq.
KERRY: No. I have one position on Iraq. One position. What they should be confused about is what President Bush has done.
CROWLEY: Still, even as he goes alpha male on the stump, Kerry is tending to his softer side, yucking it up on Letterman for the show's highest rated season opener since 1993.
(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN," COURTESY CBS)
KERRY: Eliminate all income taxes. Just ask Teresa to cover the whole damn thing.
(END VIDEO CLIP)
CROWLEY: And dropping by for a little "Regis and Kelly" in the morning.
KERRY: For any undecided voter in America, Regis, I have five words for them.
REGIS PHILBIN, HOST: Yes? And?
KERRY: Secretary of State Regis Philbin.
PHILBIN: Oh.
CROWLEY: Still to come, a chat with Dr. Phil.
Candy Crowley, CNN, Jacksonville, Florida.
(END VIDEO TAPE)
COSTELLO: CNN's election express bus is rolling toward Palm Beach, Florida for John Kerry's town hall meeting this afternoon. So be sure to join Judy Woodruff for that at 3:00 Eastern, 1:00 Pacific.
Have you heard enough about CBS and the now discredited documents on President Bush's National Guard service? Because the story is getting even more complicated.
The attorney for the man who gave CBS News those documents does not have firsthand knowledge of the events. But he is sharing what he says Bill Burkett told him about his dealings with CBS.
Here it is. (BEGIN VIDEO CLIP)
DAVID VAN OS, BILL BURKETT'S ATTORNEY: They promised him that they would keep his identity absolutely confidential. And they promised him that they would make sure that the documents were authentic and that they would not use them unless their studies of the documents proved to them that they were authentic.
(END VIDEO CLIP)
COSTELLO: Burkett, by the way, is also telling a second clock and dagger version of how he got those documents. His lawyer says the story sounds "far-fetched."
A brutal police beating. The aftermath caught on tape. We'll have details on what may have led to this at 45 minutes after the hour.
Plus, the riveting testimony in the Scott Peterson murder trial. Get a front row seat in the courtroom in five minutes.
And you won't want to miss the amazing Joey. This little dog can skateboard, drive, jump rope and more. Yes, I said drive. He'll crack you up. That's at 55 minutes past.
But first, here's a look at what else is making news this Wednesday morning.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It's 5:17 Eastern.
Here's what's all new this morning.
At least 10 militants were killed during clashes with U.S. forces in the Sadr City area of Baghdad. The fighting broke out after U.S. and Iraqi forces detained several of Muqtada al-Sadr's closest aides.
NASA has extended funding for the Mars rover mission for another six months. The Rovers Spirit and Opportunity completed their primary mission in April, but they haven't worn out yet.
In money news, store owners don't expect you to buy as much stuff this holiday season. The National Retail Federation says it's expecting a smaller jump in sales this season as compared to last year. Higher interest rates and energy costs are to blame.
In culture, many big names have signed on for an all star tribute concert to remember Ray Charles. Stevie Wonder, Usher and Elton John are among the stars who have agreed to take part in the October 8 show in Los Angeles. In sports, Jason Giambi hit his first homerun since June and it helped the Yankees keep their distance in the American League Eastern Division. The Yankees lead the Red Sox by four and a half games now -- Chad.
MYERS: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: The lead detective investigating Laci Peterson's disappearance says he had more than enough reason to suspect her husband. And he even confronted Scott Peterson in a phone call. That call was one of the details that captured the jury's attention.
CNN's Ted Rowlands tells us about it.
(BEGIN VIDEO TAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Jurors were riveted and at least one wept as Scott Peterson talked about his relationship with his wife during a television interview played in court.
Lead detective Craig Grogan spent a second day on the stand detailing the case against Scott Peterson. Grogan testified he thought Peterson was involved from the beginning, and, more than a month after Laci Peterson was reported missing, he confronted Scott Peterson on the phone about it.
(BEGIN AUDIO CLIP)
CRAIG GROGAN, LEAD DETECTIVE: I mean, you and I both know what happened to Laci.
SCOTT PETERSON: Do you know what happened to her?
GROGAN: We both do.
PETERSON: Craig, I need to know what happened to her. Are you telling me you know what happened to her?
GROGAN: Scott, I mean, let's be serious with one another.
PETERSON: Craig, tell me what -- do you know what happened to her? Do you know where she is?
GROGAN: Well, I know where we're looking for her. And...
PETERSON: Where?
GROGAN: ... and I think we're probably going to find her over there in the Bay.
PETERSON: Oh...
GROGAN: It's a matter of time. PETERSON: ... Craig, you -- I had nothing to do with Laci's disappearance. Unreal. OK, I'm going to go.
GROGAN: Scott, what I'm offering you is an opportunity here to end all of this nonsense.
PETERSON: I'm going to find her, Craig.
(END AUDIO CLIP)
ROWLANDS: The prosecution also played videotapes of Peterson talking to the media, including this interview with Diane Sawyer, where he lies about telling the police that he was having an affair.
(BEGIN VIDEO CLIP FROM ABC NEWS, COURTESY ABC)
DIANE SAWYER, HOST: Did you tell police?
PETERSON: I told the police immediately.
SAWYER: When?
PETERSON: That was the first night we were together, the police, I spent with the police...
SAWYER: You told them about her?
PETERSON: Yes.
(END VIDEO CLIP)
COSTELLO: The day after the interview, Detective Grogan called Scott Peterson. It was in that call that Peterson admitted to lying to police about his affair.
In other news across America this morning, do you remember the singer Cat Stevens? Well, so does the U.S. government. He's going back to London today after being denied entry into the United States. Now known as Yusuf Islam, he was pulled off a flight from London to Washington, D.C.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: They said, you know, get ready to land. And then they said, "Welcome to Bangor." And we thought they were joking. We had no idea that we'd been diverted.
UNIDENTIFIED MALE: Here you've got this plane full of passengers. Everybody stayed remarkably calm. I really -- I was really kind of surprised by that because it was a situation where you'd think after a while people would get a little bit edgy.
(END VIDEO CLIP)
COSTELLO: The plane was diverted to Maine after Islam, Cat Stevens, popped up on a terror watch list. The Transportation Security Administration says the 56-year-old Islam was recently added to the list because of financial support to organizations believed to be aiding terrorism. He gives a lot of money to charity organizations, if you know what I mean.
If you flew anywhere in June, the government wants to know. The Transportation Security Administration wants all 77 U.S. air carriers to hand over the names of travelers. The TSA wants to use the personal information from June to test a new screening system. The so-called Secure Flight System matches passenger information against terror watch lists.
Police are still searching for a missing 13-year-old Florida girl. She may have been taken to Georgia by the registered sex offender. An amber alert was issued Sunday for Briana Schultheis. Police say 31-year-old Raymond Lewis had been hired to do odd jobs by the girl's parents and the two may have developed a relationship.
Happy autumn. Today is the autumnal equinox. That means both the day and night are exactly 12 hours long. But for people south of the equator, it's the first day of spring.
What's hot on the Web site, straight ahead.
Plus...
(BEGIN VIDEO CLIP FROM "60 MINUTES," COURTESY CBS NEWS)
MIKE WALLACE, HOST: I'm Mike Wallace.
MORLEY SAFER, HOST: I'm Morley Safer.
ED BRADLEY, HOST: I'm Ed Bradley.
DAN RATHER, HOST: (UNINTELLIGIBLE).
(END VIDEO CLIP)
COSTELLO: Aw, the jokes just keep on coming as Jay Leno weighs in on the CBS docuflap.
And keep those e-mails coming. Should U.S. contractors temporarily be restricted from working in Iraq? The address, daybreak@cnn.com.
And you're watching DAYBREAK for a Wednesday.
(COMMERCIAL BREAK)
MYERS: Web clicks. What are you clicking on this morning?
COSTELLO: Yes, we're interested, as I sit...
MYERS: What are you drinking over there?
COSTELLO: I'm drinking the strongest coffee that Starbucks has. I had a late night last night. But let's talk about Web clicks, shall we?
MYERS: So did Cat Stevens, I guess.
COSTELLO: Well, you know, the thing that's most upsetting to me about this story, we got into it a little bit before...
MYERS: Yes. There you go.
COSTELLO: Cat Stevens is on this flight from London to Washington-Dulles. His name -- because he's adopted Islam, and he did that like -- a Muslim name, I should say, he did that a long time ago, in the '70s.
MYERS: Yes.
COSTELLO: But his name turns up on this terror watch list...
MYERS: Because he has known associations and financial support to organizations believed to be aiding terrorism. That's according to the government officials.
COSTELLO: Yes. So his name is on this watch list. He gets on the plane and then they notice his name is on the watch list.
MYERS: When they're over the Atlantic.
COSTELLO: Yes.
MYERS: Not like on the ground.
COSTELLO: Yes.
MYERS: It scares me a little bit.
COSTELLO: So, that's the most upsetting thing still.
MYERS: So they turned it around. They landed the plane in Bangor, Maine and...
COSTELLO: Yes. And he's off the plane now and he's headed back to Britain, somehow, some way, we don't know how.
The second most clicked on story, "Men Break Into Lotto Winner's Home With Body Inside."
MYERS: This guy, remember this Jack Whittaker guy from West Virginia who won all this money?
COSTELLO: Yes.
MYERS: He's the most unlucky guy.
COSTELLO: He is. He wasn't home at the time and he had nothing to do with this man's death. An 18-year-old guy found dead inside his home. It was a friend of his granddaughter. MYERS: Some kind of (UNINTELLIGIBLE).
COSTELLO: And then these other guys break into the house and steal everything and leave the dead body there. It was just a bizarre story.
MYERS: That they (UNINTELLIGIBLE) doing.
And then a guy falls in the Grand Canyon and his wife didn't hear it. So...
COSTELLO: Well, she was walking in front of him and she turned around and he wasn't there.
MYERS: Yes.
COSTELLO: And he fell 500 feet. They still haven't recovered the body.
MYERS: They couldn't get it because the winds were too strong in the Grand Canyon yesterday.
COSTELLO: Yes. So a real mystery there.
MYERS: So those are the three that you're clicking on this morning.
COSTELLO: All right.
And thanks for that.
We've been telling you how CBS is in damage control mode over its reporting on President Bush's National Guard service. Well, here's Jay Leno's spin on the situation.
(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)
JAY LENO, HOST: I'm sure you all heard about the beach at CBS, which stands for can't back story, by the way. (UNINTELLIGIBLE).
(LAUGHTER)
LENO: Well, CBS now admits that, yes, Bush National Guard memo was a fake. And, of course, this has caused a huge shakeup at CBS. Now they're starting to question other shows, like does everybody really love Raymond?
(END VIDEO CLIP)
COSTELLO: Poor Dan Rather, though. He just must be in absolute hell these days.
MYERS: Yes, he is...
COSTELLO: Because you know he feels bad about it. MYERS: Of course. Of course.
COSTELLO: It's just incredible.
MYERS: And he's still an icon to me, you know? Whether this happened or not, whatever.
COSTELLO: Well, he's got more trouble to come, I'm sure.
MYERS: Oh, yes.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
He shoots, he scores and he's heading for stardom. Later this hour, a playful pooch shows us some amazing tricks.
Stay tuned.
(COMMERCIAL BREAK)
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