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American Morning

Interview With Bush Campaign Adviser Karen Hughes; Rebuilding Iraq's Civilian Health Care System

Aired March 04, 2004 - 07:30   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.


SOLEDAD O'BRIEN, CNN ANCHOR: Yes, we are.
Also, it is time to break out the body bags. "The Sopranos" back for its fifth season this Sunday. The "90-Second Pop" gang is with us to talk a little bit more about what we can expect from the hit drama, and also what's new this time around.

BILL HEMMER, CNN ANCHOR: Apparently, a pretty good plot with Tony.

O'BRIEN: It's always good.

HEMMER: Things are going on in his head.

(CROSSTALK)

O'BRIEN: Well, Carmela is leaving and, you know, the whole nine yards.

HEMMER: Top stories here, bottom of the hour.

Some changes at the Walt Disney Company. Michael Eisner was stripped of his chairman's title yesterday, but will stay on as the CEO. The board of directors decided to split Eisner's responsibilities after more than 40 percent of the shareholders voted to oppose his re-election to the board. Former Senator George Mitchell will be the company's new chairman. More on this throughout the show. Andy is watching it quite closely for us.

From New Jersey, the prosecutor's key witness takes the stand again today in the Jayson Williams trial. A former teammate told the court yesterday that Williams had his finger near the trigger of a shotgun and screamed obscenities at a driver just before that shotgun went off. Williams accused of eight charges, including manslaughter and witness tampering. More on this trial also next hour here on AMERICAN MORNING.

Broadcasters who air indecent material could face fines of half a million dollars. The plan to raise fines was fueled by heavy complaints after Janet Jackson's Super Bowl incident; involving Howard Stern's radio show also. A House subcommittee voted 49-1 yesterday to impose the larger fines. That measure now goes to the full House on Capitol Hill.

From sports, as they say, all good things must come to an end. And what a streak this was. Duke University at home, their home- winning streak snapped by Georgia Tech, a 41-game home-winning streak, the longest in the country. Georgia Tech's man-to-man defense too much last night for the Blue Devils, 76-68 the final. They are in mourning at the Serat (ph) household in North Carolina. Serat (ph) is our boss.

Anyone looking for free shrimp has NASA to blame. Seafood restaurant chain Long John Silvers had launched a promotion offering a free six-inch shrimp to every American if one of the Mars rovers found evidence of water on the Red Planet. NASA's Opportunity rover came through, but the freebies will not be coming, they say it was too late. The promotion would have cost the chain about $230 million. So, guess again for the next promotion.

O'BRIEN: You can't do that.

HEMMER: I'm telling you. Do you want me to get the company on the phone?

O'BRIEN: What? The rovers didn't work fast enough?

HEMMER: Not enough cocktail sauce?

O'BRIEN: Wow! Huh.

Weather now.

(WEATHER BREAK)

O'BRIEN: The president's political team has their candidate on the road and their ads now on the air. Today, the Bush-Cheney team is launching the first wave in its 2004 media campaign. Let's take a look.

(BEGIN VIDEO CLIP)

ANNOUNCER: The last few years have tested America in many ways. Some challenges we've seen before, and some were like no others. But America rose to the challenge. What sees us through tough times? Freedom, faith, families and sacrifice. President Bush, steady leadership in times of change.

(END VIDEO CLIP)

O'BRIEN: The television ads will run in 16 states and nationally on cable.

Joining us this morning from Austin, Texas, to talk about the president's message is Karen Hughes. She's a former White House counselor, now a Bush campaign advisor.

Nice to see you, Karen. Thanks for being with us.

KAREN HUGHES, BUSH CAMPAIGN ADVISOR: Good morning, Soledad. Nice to be here.

O'BRIEN: Thank you very much. There is word in some local papers here in New York City that says that some of the family members of victims of 9/11 are furious -- that's a quote -- about the way these ads have come across. Also there are members of the firefighters union who say that they are unhappy with the one-second image of firefighters in that ad as well. Do you think in retrospect maybe that was a mistake?

HUGHES: Soledad, no, I just respectfully completely disagree. Your viewers just saw the ad. I think it's very tasteful. It's a reminder of our shared experience as a nation. I mean, September 11 is not just some distant tragedy from the past. It really defined our future.

I was at the White House when it happened, and it changed forever our national public policy. And it's important that the next president knows that and realizes we are still at war today. Because of that day, we are at war against terror.

So, you know, it impacted our nation in so many ways, not only the lives lost -- and many of us lost friends in that terrible tragedy -- not only the lives lost, however, also in terms of jobs. It was a blow to our economy, and it forever changed the international security landscape.

I remember my friend, Condoleezza Rice, the national security advisor, calling it an earthquake across the international security environment. So, I think it's very important that the next president recognize the lessons of that day and be prepared to wage and win the war against terror.

O'BRIEN: There are some who have been advising the administration apparently who said that -- are quoted as saying that these ads are set up to frame the debate. Explain to me what exactly is being framed this early on? They're positive ads as opposed to moving into negative ads.

HUGHES: Well, I think that's an important contrast. Senator Kerry started his campaign with a negative attack ad against President Bush. We've seen a lot of anger and invective throughout the course of the Democratic primary process. These are optimistic ads, because President Bush is an optimistic leader.

You know, these ads are a reminder of the extraordinary three years that we've had. We've been through a lot. I tell friends that it's often hard to recognize history when you are living in the midst of it. We've been living in amazing times. The world is changing very dramatically. Our economy is changing. We've been through the tragedy of September 11. We've been through a recession that President Bush inherited. We saw the corporate scandals and the stock market decline and the dot-com boom gone bust.

And so, we've been through an extraordinary time together, and these ads recognize that, and also talk about the incredible resiliency of the American people and how despite all we've been through, we're coming back. President Bush has pursued the right policies, which have led our economy back to growth. We're once again creating jobs. And I think this can be an incredibly optimistic time for our country and for the cause of human freedom in the world.

I've just returned from Afghanistan, where everyone there is -- the people I met were so grateful to the United States of America for what we've done to help them live in freedom.

O'BRIEN: We only have a few seconds left, and I want to get a final question to you. The DNC chairman is not quite as optimistic as you paint your picture. He says these ads are expected to reference the president's steady leadership as president, but they would be remiss to leave out some steady facts when it comes to his leadership, a steady loss of jobs, a steady increase in the uninsured Americans, a state of decline in education funding. How do you respond to that?

HUGHES: Well, I suspect that the Democratic chairman is not for President Bush, and it's an interesting reflection that what we've seen throughout the Democratic nomination process is anger and invective directed at President Bush. But anger is not an optimistic vision for the future of this country. Anger doesn't create jobs. Anger doesn't wage and win the war against terror. Anger does improve, extend freedom in the world or peace in the world.

And so, I think you're going to see a big contrast in this campaign between the optimistic vision of President George W. Bush, and sort of the negative partisan anger of the Democratic Party as reflected in its chairman.

O'BRIEN: Karen Hughes is a Bush campaign advisor joining us this morning. Nice to see you. Thanks for being with us.

HUGHES: Good to see you, Soledad. Thank you for having me.

O'BRIEN: My pleasure -- Bill.

HEMMER: About 22 minutes now before the hour.

An explosion tore apart Iraq's main phone exchange yesterday. That exchange had only reopened a few days ago. And rebuilding in Iraq continues to be a massive struggle.

Last year, at the start of the war, our own Dr. Sanjay Gupta spent about six weeks reporting with the Devil Docs, a group of Navy corpsmen, as they treated wounded soldiers right near the front lines. It was considered revolutionary.

This past week, Sanjay went back to Iraq to report on the rebuilding of its civilian health care system. And Sanjay is here in New York to talk about his experience.

Good morning. What did you learn?

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: And good morning.

A year later, just how organized are they getting? Well, it was so chaotic about a year ago, were they ever going to be able to turn this health care system around? How bad was it before the war? How bad is it now? How good might it get? (BEGIN VIDEOTAPE)

GUPTA (voice-over): This hospital in Baghdad specializes in pediatric care. It's not enough, though, to meet the challenges. And according to the Iraqi minister of health, 1 in 10 infants will die before they are a year old.

Antibiotics that save lives and costs just pennies in the United States are in short supply. These women, for example, are at risk of dying from routine infections.

Sadly, the Iraqi health system that 30 years ago was the finest in the Middle East needs more than a financial band-aid. It needs to be completely overhauled.

TOMMY THOMPSON, HHS SECRETARY: What we're going to do as a department is to collaborate and to cooperate and to partnership with the people in Iraq to rebuild that medical system back to what it was in the 1970s.

GUPTA (on camera): Without question, Iraq's health system has faltered. Some believe because of a cruel dictator who made his people pay for the embargos placed on his country. Others believe three wars and 20 years were more to blame.

(voice-over): To be sure, best estimates say Iraq spent around $20 million on health care in 2002. That's about 68 cents per person. This year, the expenditure will be close to 900 million, or about $40 per person -- most of that money from oil revenues. For reference, in the U.S., around $4,000 is spent per person by the government.

Starting from scratch will not be easy, but both Americans and Iraqis agree that is what needs to be done. For too long, little or no money was spent on the infrastructure needed to provide basic care and prevent disease; $900 million may change that slowly.

(END VIDEOTAPE)

And you really get a sense looking inside that hospital what things are like now. I mean, there were stories of raw sewage, contamination, all sorts of things flowing through those hospitals. We were traveling with the secretary of health, so it was probably a little cleaned up for him, no question. But, you know, they've still got a long way to go. They've got to rebuild an entire country's health care system from scratch.

HEMMER: And the point you make about paying for it though oil revenue. There was a report out just over the weekend that said the oil output is right near the same levels pre-war, which is a good sign if you're looking for money to pay for it.

GUPTA: And they've already increased their health care expenditures by 40 times. The health minister, I talked to him. He said, you know what? I want to even double that. He said, I want about $2 billion a year to pay for this.

HEMMER: Good to have you back here.

GUPTA: Thank you.

HEMMER: Talk to you next hour, Sanjay. All right -- Soledad.

O'BRIEN: Still to come on AMERICAN MORNING, prospective jurors in the Scott Peterson case have a lot of questions to answer before the trial even gets under way. We're going to take you live to California in our next hour.

HEMMER: Also, the Hummer may be first in war and first in peace, but it's just about last in the hearts of consumers. We'll explain that.

O'BRIEN: And, the inside dope on the season premiere of "The Sopranos." Our "90-Second Pop" panel risks life and limb. That's ahead as AMERICAN MORNING continues.

(COMMERCIAL BREAK)

HEMMER: Oh, "90-Second Pop" back today. Say hello this morning to our esteemed panel. Jessica Shaw, "Entertainment Weekly."

Nice to see you back here, Jessica.

JESSICA SHAW, "ENTERTAINMENT WEEKLY": Thank you.

HEMMER: B.J. Sigesmund, staff editor for "US Weekly."

Good morning.

B.J. SIGESMUND, "US WEEKLY": Good morning.

HEMMER: Sarah Bernard, contributing editor for "New York" magazine.

Nice to see you, Sarah.

SARAH BERNARD, "NEW YORK" MAGAZINE: You, too.

HEMMER: How do you like the tunes?

SIGESMUND: Love them.

SHAW: Love them.

HEMMER: Yeah?

SHAW: Eminem.

HEMMER: They waking you up?

SIGESMUND: I like the mix, too, with Starsky up there, also "The Sopranos."

HEMMER: Putting it all together. SHAW: You're all about Snoop here at AMERICAN MORNING.

HEMMER: Very true.

Let's see, Sunday night's "Sopranos." You've seen at least, what, the first episode?

BERNARD: Yes. Yes, I have.

HEMMER: What did you think?

BERNARD: You know, it's really, really good. Last season, it was getting dark. It was really mired in Tony's and Carmela's breakup. And I was feeling like it had lost something about the first couple of years, some of the humor, some of the unexpected perkiness. And it's really all back. David Chase is back on his game. And the most interesting development is that there are a whole bunch of mobsters who were jailed in the '80s that are now coming out, and...

HEMMER: Yes. Retribution?

BERNARD: That's right. Well, they are some of Tony's relatives -- one of them is played by Steve Buscemi, who actually directed one of the best episodes called the "Pine Barrens." You remember the one where Steve -- Christopher and Pauly were kind of wandering around in the woods. So, now he's actually become a character, and he wants, you know, back in on the action.

HEMMER: So...

SHAW: I just want Carmela to get in on the action.

(CROSSTALK)

BERNARD: She's starting to have some action.

SHAW: (UNINTELLIGIBLE) out on people.

BERNARD: She's going to have some of her own action this season.

SIGESMUND: I'm most into the Tony-Dr. Melfi burgeoning romance. Supposedly, he asks her to go to the Bahamas or Bermuda with him, and she has like this weird sex dream about him. I can't wait for that.

SHAW: He's such a dog.

BERNARD: Yes, he is.

SIGESMUND: He's a dog in a good way.

HEMMER: Oh, the complexities in Tony's head, though.

SHAW: That's so true.

HEMMER: You know, Jeff Toobin saw the first two episodes.

BERNARD: And he liked it.

HEMMER: I don't know how he got them, by the way. We'll have to ask him about that. He liked both of them, too.

(CROSSTALK)

HEMMER: A lot of dark humor, but he said it worked.

Let's talk about the box office this weekend. "Starsky and Hutch" is back.

SIGESMUND: Yes, this is going to be...

HEMMER: What do you got? Ben Stiller and Owen Wilson? How did they do?

SIGESMUND: Right. This is going to be the big movie of this weekend. This is a spoof directed by the same guy who did "Old School" and "Road Trip." So, you kind of know what to expect. It basically exploits all of the unintentional humor in the 1970s series, you know, the era of bad perms and leisure suits. Plus, it's got Snoop Dog in there as an informant.

SHAW: But it's actually supposed to be really good.

SIGESMUND: Yes, he's...

SHAW: Like, people are saying he's a serious actor now. Like, this movie is going to do it for him.

BERNARD: Yes, and...

HEMMER: Isn't that amazing how he remakes himself? I love it.

BERNARD: He says he wants an Academy Award. That's his goal. And I think he might (UNINTELLIGIBLE).

SIGESMUND: Him and Michael Jackson.

SHAW: He will, of course, get it, absolutely.

HEMMER: How did they do on screen chemistry? They've made a number of films together.

SIGESMUND: This is actually their fifth movie together. Remember, they were in "Meet the Parents."

HEMMER: "Zoolander."

SIGESMUND: And they were in "Zoolander," of course. They're like this great new team, and they have a schtick. You know, Stiller plays the nevishe (ph) guy, and Owen Wilson is like the cook dude, relaxed and laid back. And it works for them, and they're very bankable.

HEMMER: One critic said it's a predictable rut that they're falling into.

SIGESMUND: Yes.

HEMMER: But based on what you're saying, you didn't buy into it.

SIGESMUND: This movie is pretty predictable. Well, when you go to a movie like this and it's directed by the guy who did "Old School," you sort of know what to expect, which is not much.

SHAW: And also, what else is there out there? Like, a horse movie, you know?

BERNARD: Yes.

SHAW: There's not so much -- I mean...

(CROSSTALK)

SIGESMUND: That should be our segue to "Hidalgo."

HEMMER: Go ahead, quickly.

SIGESMUND: Yes, "Hidalgo," it stars Viggo Mortensen, the guy, of course, from "Lord of the Rings." He plays -- it's set in 1890, and he plays a Pony Express messenger who takes his aging horse to the Middle East for this 3,000 mile race across over the Arabian Desert.

HEMMER: I like it.

SHAW: The poorest movie, totally over...

HEMMER: But did you see it?

SHAW: ... "Seabiscuit" backlash...

HEMMER: You didn't like it? I loved "Seabisuit."

SHAW: Did it win any awards?

HEMMER: No, it didn't, but I thought it should have, though.

SIGESMUND: You know...

BERNARD: This looks like an "Indiana Jones" movie. I mean...

(CROSSTALK)

SIGESMUND: Well, the good reviews -- and it's gotten both good and bad. The good reviews say that parts of it are very much like "Raiders of the Lost Ark." This is a real-guy movie. You know, it's a race.

(CROSSTALK)

HEMMER: It's like "Lawrence of Arabia" a little bit, too.

SIGESMUND: The horse actually...

SHAW: Omar Sharif is in it, also.

SIGESMUND: Omar Sharif is in it.

HEMMER: Yes, there you go.

SIGESMUND: It's more about the horse than it is Hidalgo. I'm sorry -- more about the horse than it is about Viggo.

BERNARD: I don't think anything can overshadow Viggo. Let me just say that right now. A horse is a horse.

SIGESMUND: The horse gets a lot of screen time in this movie.

SHAW: Judging from the size of his head on the poster I think (UNINTELLIGIBLE).

HEMMER: Quickly, Jessica, Steven King premiered last night, "Kingdom Hospital" on ABC. Did you like it?

SHAW: Yes. Well, it was OK. It was long. It's the first of 13 episodes, haunted hospital, talking anteater, if that's your thing.

HEMMER: Does it come together?

SHAW: You know, it wasn't really dark enough for me, like I was kind of hoping that Steven King...

HEMMER: Yes.

SHAW: ... it was going to like be really, really creepy.

SIGESMUND: What I love about this is that Steven King saw this Danish miniseries called "The Kingdom" from the '90s, which I loved. It was very funny and dark. And he sort of rewrote it himself and put in a lot of own personal history...

SHAW: Put in himself.

(CROSSTALK)

BERNARD: That's right.

SHAW: The accident he put in, and it was sort like...

HEMMER: Well, he wrote the thing while he was recovering in bed from that van crash.

SIGESMUND: Right, right.

SHAW: But it's of kind like (UNINTELLIGIBLE) with Dr. Melfi, you know.

(CROSSTALK)

HEMMER: We've got to leave it there. Thanks, Jessica. Good to see you. B.J., Sarah, have a good day, all right?

Here's Soledad again -- Soledad.

O'BRIEN: Still to come this morning, one low-cost carrier says it's in it for the long haul, and it's taking things overseas. We'll explain up next.

Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Sales of a high-profile SUV are cooling, and one carrier in the air has some big plans.

Andy Serwer is "Minding Your Business" this morning.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you. We're going to do a transportation segment, OK?

O'BRIEN: Fantastic.

SERWER: All right, let's talk about the Hummer. Obviously, this car has been red hot for a couple of years now. But are sales cooling off? Yes, in fact, they are. Not making the people at General Motors very happy.

Sales of the H2 down six months in a row. Last year, they sold 35,000 of these puppies. And the H3 is rolling out.

Why are the sales down? Well, how about this: Can you say saturation? How big can this market be? Also, gas prices...

JACK CAFFERTY, CNN ANCHOR: It's an ugly car?

SERWER: Oh, Jack doesn't like it.

O'BRIEN: I think it's a cute car.

SERWER: Well, so much for your Christmas present.

HEMMER: What's the retail on that, like 52 grand?

SERWER: It's 48,000.

(CROSSTALK)

HEMMER: Oh, it's come down a bit.

SERWER: Right, yes.

(CROSSTALK)

SERWER: The H1 one was 100, so, you know, they really have come down. That's right. Let's talk about airlines, though. JetBlue, that would be JetBlue, the 4-year-old discount airline, very, very hot. This is a company that's really been growing at a very fast rate, now expanding overseas. They're going to the Caribbean, which could be a lot of fun, because they have those leather seats and they have those TVs which are...

O'BRIEN: I live TV.

HEMMER: Yes.

SERWER: I don't want to sound like I'm going for this thing, but if you've got little kids, those TVs in the seat are -- they're fantastic.

O'BRIEN: Just pop them there, throw it on.

SERWER: Yes.

HEMMER: He's giving you ideas, Soledad.

O'BRIEN: If I ever have all of those ideas, believe me. TV?

HEMMER: (UNINTELLIGIBLE) day before.

SERWER: Already the biggest airline at JFK now.

HEMMER: Is that so?

O'BRIEN: Really?

SERWER: Yes, they are.

O'BRIEN: Wow!

SERWER: Interesting.

O'BRIEN: Do the market update.

SERWER: OK, very quickly. A mixed day yesterday. Dow was up. Nasdaq down. Of course, that big jobs report coming on Friday. We're waiting for that. Two stocks in the news today. Martha Stewart coming out. They have a profit, but warning about the first quarter. And ImClone -- why are these two companies always in the news? Billionaire Carl Icon (ph) is saying he's got a stake. That stock is moving in the pre-market. We'll be watching those.

(CROSSTALK)

O'BRIEN: Interesting, all right.

SERWER: Yes.

O'BRIEN: And we're also going to be talking a little more about Disney coming up in the top of our next hour.

SERWER: We will.

O'BRIEN: All right, thanks, Andy.

SERWER: You're welcome.

HEMMER: Here's Jack, question of the day now.

CAFFERTY: Thanks, Bill.

President Bush's new campaign commercials are on the air around parts of the country, and they include images of ground zero and the terrorist attacks of September 11.

One New York newspaper reports the families of the victims are furious. They accuse the president of exploiting the national tragedy. Administration officials defend the spots, saying the imagery is appropriate, because September 11 was -- quote -- "a defining moment of these times" -- unquote.

So, we wanted your opinion: Is it appropriate to use images of September 11 in political ads? Hundreds of people responded. I mean, like that. So, there's some emotion around this out there.

Jeff in Sarasota, Florida: "The use of September 11 footage in Bush campaign ads is vulgar in the extreme. The arrogance and audacity of the Bush administration is mind boggling. If anything, the imperialist attitude that Bush represents is responsible for the September 11th attacks."

Charlie in Virginia writes: "Without a doubt, George Bush deserves the right to have a flash picture of the remains of the Twin Towers in his ads. He faced that huge problem without a stumble, and should get an 'at a boy' from the entire country for doing so."

Natalie in Mount Lookout, West Virginia: "One question: If there's another attack prior to the election, which is a real possibility, does John Kerry get to use those images in his ads? Just wondering."

Lorraine in Leesburg, Indiana: "No, but since when has Bush cared about propriety? The photo-op at ground zero with the hard hat, the megaphone, the stunt on the Lincoln" -- that's the aircraft carrier -- "Thanksgiving in Baghdad, he's been campaigning for re- election since a month after he was sworn in and on the taxpayer's nickel."

And Paul from Pennsylvania, Hellertown, writes: "Throughout the September 11 tragedy, President Bush for once actually looked and acted presidential. So, give him a break and let him use the event to his political advantage during this final eight months in the White House, but make sure he leaves the flight suit behind."

AM@cnn.com.

HEMMER: Hundreds already, huh?

O'BRIEN: Wow!

CAFFERTY: Yes, just -- I mean, a very quick and big response.

HEMMER: Here's the question. The fingers, the shadows of 9/11, stretches into all aspects of our society even today. How do you run a campaign without referencing it? Or is it the images themselves that have people concerned?

CAFFERTY: Well, nobody is talking about him not referencing it. They're talking about pictures...

O'BRIEN: Right.

CAFFERTY: ... of the place where 3,000 people died and shots that suggest the removal of human remains in a political ad.

O'BRIEN: It's not surprising to me that it's emotional at all.

SERWER: Right.

O'BRIEN: It doesn't shock me.

HEMMER: And you can understand how people would be furious.

SERWER: And it is a question of degree, as you said, because you have to mention it. It's unavoidable.

O'BRIEN: Yes.

SERWER: But do you use those images?

O'BRIEN: (UNINTELLIGIBLE). Well, we'll see what people say.

HEMMER: David Gergen is up. He knows a few things about...

O'BRIEN: Yes, he does.

HEMMER: ... PR and political campaigns. We'll talk to him in the next hour.

O'BRIEN: All right. And still to come this morning, the people who will decide the fate of Scott Peterson in his murder trial about to be chosen. It's going to be a long process, though. We've got details on that just ahead as AMERICAN MORNING continues.

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Rebuilding Iraq's Civilian Health Care System>


Aired March 4, 2004 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Yes, we are.
Also, it is time to break out the body bags. "The Sopranos" back for its fifth season this Sunday. The "90-Second Pop" gang is with us to talk a little bit more about what we can expect from the hit drama, and also what's new this time around.

BILL HEMMER, CNN ANCHOR: Apparently, a pretty good plot with Tony.

O'BRIEN: It's always good.

HEMMER: Things are going on in his head.

(CROSSTALK)

O'BRIEN: Well, Carmela is leaving and, you know, the whole nine yards.

HEMMER: Top stories here, bottom of the hour.

Some changes at the Walt Disney Company. Michael Eisner was stripped of his chairman's title yesterday, but will stay on as the CEO. The board of directors decided to split Eisner's responsibilities after more than 40 percent of the shareholders voted to oppose his re-election to the board. Former Senator George Mitchell will be the company's new chairman. More on this throughout the show. Andy is watching it quite closely for us.

From New Jersey, the prosecutor's key witness takes the stand again today in the Jayson Williams trial. A former teammate told the court yesterday that Williams had his finger near the trigger of a shotgun and screamed obscenities at a driver just before that shotgun went off. Williams accused of eight charges, including manslaughter and witness tampering. More on this trial also next hour here on AMERICAN MORNING.

Broadcasters who air indecent material could face fines of half a million dollars. The plan to raise fines was fueled by heavy complaints after Janet Jackson's Super Bowl incident; involving Howard Stern's radio show also. A House subcommittee voted 49-1 yesterday to impose the larger fines. That measure now goes to the full House on Capitol Hill.

From sports, as they say, all good things must come to an end. And what a streak this was. Duke University at home, their home- winning streak snapped by Georgia Tech, a 41-game home-winning streak, the longest in the country. Georgia Tech's man-to-man defense too much last night for the Blue Devils, 76-68 the final. They are in mourning at the Serat (ph) household in North Carolina. Serat (ph) is our boss.

Anyone looking for free shrimp has NASA to blame. Seafood restaurant chain Long John Silvers had launched a promotion offering a free six-inch shrimp to every American if one of the Mars rovers found evidence of water on the Red Planet. NASA's Opportunity rover came through, but the freebies will not be coming, they say it was too late. The promotion would have cost the chain about $230 million. So, guess again for the next promotion.

O'BRIEN: You can't do that.

HEMMER: I'm telling you. Do you want me to get the company on the phone?

O'BRIEN: What? The rovers didn't work fast enough?

HEMMER: Not enough cocktail sauce?

O'BRIEN: Wow! Huh.

Weather now.

(WEATHER BREAK)

O'BRIEN: The president's political team has their candidate on the road and their ads now on the air. Today, the Bush-Cheney team is launching the first wave in its 2004 media campaign. Let's take a look.

(BEGIN VIDEO CLIP)

ANNOUNCER: The last few years have tested America in many ways. Some challenges we've seen before, and some were like no others. But America rose to the challenge. What sees us through tough times? Freedom, faith, families and sacrifice. President Bush, steady leadership in times of change.

(END VIDEO CLIP)

O'BRIEN: The television ads will run in 16 states and nationally on cable.

Joining us this morning from Austin, Texas, to talk about the president's message is Karen Hughes. She's a former White House counselor, now a Bush campaign advisor.

Nice to see you, Karen. Thanks for being with us.

KAREN HUGHES, BUSH CAMPAIGN ADVISOR: Good morning, Soledad. Nice to be here.

O'BRIEN: Thank you very much. There is word in some local papers here in New York City that says that some of the family members of victims of 9/11 are furious -- that's a quote -- about the way these ads have come across. Also there are members of the firefighters union who say that they are unhappy with the one-second image of firefighters in that ad as well. Do you think in retrospect maybe that was a mistake?

HUGHES: Soledad, no, I just respectfully completely disagree. Your viewers just saw the ad. I think it's very tasteful. It's a reminder of our shared experience as a nation. I mean, September 11 is not just some distant tragedy from the past. It really defined our future.

I was at the White House when it happened, and it changed forever our national public policy. And it's important that the next president knows that and realizes we are still at war today. Because of that day, we are at war against terror.

So, you know, it impacted our nation in so many ways, not only the lives lost -- and many of us lost friends in that terrible tragedy -- not only the lives lost, however, also in terms of jobs. It was a blow to our economy, and it forever changed the international security landscape.

I remember my friend, Condoleezza Rice, the national security advisor, calling it an earthquake across the international security environment. So, I think it's very important that the next president recognize the lessons of that day and be prepared to wage and win the war against terror.

O'BRIEN: There are some who have been advising the administration apparently who said that -- are quoted as saying that these ads are set up to frame the debate. Explain to me what exactly is being framed this early on? They're positive ads as opposed to moving into negative ads.

HUGHES: Well, I think that's an important contrast. Senator Kerry started his campaign with a negative attack ad against President Bush. We've seen a lot of anger and invective throughout the course of the Democratic primary process. These are optimistic ads, because President Bush is an optimistic leader.

You know, these ads are a reminder of the extraordinary three years that we've had. We've been through a lot. I tell friends that it's often hard to recognize history when you are living in the midst of it. We've been living in amazing times. The world is changing very dramatically. Our economy is changing. We've been through the tragedy of September 11. We've been through a recession that President Bush inherited. We saw the corporate scandals and the stock market decline and the dot-com boom gone bust.

And so, we've been through an extraordinary time together, and these ads recognize that, and also talk about the incredible resiliency of the American people and how despite all we've been through, we're coming back. President Bush has pursued the right policies, which have led our economy back to growth. We're once again creating jobs. And I think this can be an incredibly optimistic time for our country and for the cause of human freedom in the world.

I've just returned from Afghanistan, where everyone there is -- the people I met were so grateful to the United States of America for what we've done to help them live in freedom.

O'BRIEN: We only have a few seconds left, and I want to get a final question to you. The DNC chairman is not quite as optimistic as you paint your picture. He says these ads are expected to reference the president's steady leadership as president, but they would be remiss to leave out some steady facts when it comes to his leadership, a steady loss of jobs, a steady increase in the uninsured Americans, a state of decline in education funding. How do you respond to that?

HUGHES: Well, I suspect that the Democratic chairman is not for President Bush, and it's an interesting reflection that what we've seen throughout the Democratic nomination process is anger and invective directed at President Bush. But anger is not an optimistic vision for the future of this country. Anger doesn't create jobs. Anger doesn't wage and win the war against terror. Anger does improve, extend freedom in the world or peace in the world.

And so, I think you're going to see a big contrast in this campaign between the optimistic vision of President George W. Bush, and sort of the negative partisan anger of the Democratic Party as reflected in its chairman.

O'BRIEN: Karen Hughes is a Bush campaign advisor joining us this morning. Nice to see you. Thanks for being with us.

HUGHES: Good to see you, Soledad. Thank you for having me.

O'BRIEN: My pleasure -- Bill.

HEMMER: About 22 minutes now before the hour.

An explosion tore apart Iraq's main phone exchange yesterday. That exchange had only reopened a few days ago. And rebuilding in Iraq continues to be a massive struggle.

Last year, at the start of the war, our own Dr. Sanjay Gupta spent about six weeks reporting with the Devil Docs, a group of Navy corpsmen, as they treated wounded soldiers right near the front lines. It was considered revolutionary.

This past week, Sanjay went back to Iraq to report on the rebuilding of its civilian health care system. And Sanjay is here in New York to talk about his experience.

Good morning. What did you learn?

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: And good morning.

A year later, just how organized are they getting? Well, it was so chaotic about a year ago, were they ever going to be able to turn this health care system around? How bad was it before the war? How bad is it now? How good might it get? (BEGIN VIDEOTAPE)

GUPTA (voice-over): This hospital in Baghdad specializes in pediatric care. It's not enough, though, to meet the challenges. And according to the Iraqi minister of health, 1 in 10 infants will die before they are a year old.

Antibiotics that save lives and costs just pennies in the United States are in short supply. These women, for example, are at risk of dying from routine infections.

Sadly, the Iraqi health system that 30 years ago was the finest in the Middle East needs more than a financial band-aid. It needs to be completely overhauled.

TOMMY THOMPSON, HHS SECRETARY: What we're going to do as a department is to collaborate and to cooperate and to partnership with the people in Iraq to rebuild that medical system back to what it was in the 1970s.

GUPTA (on camera): Without question, Iraq's health system has faltered. Some believe because of a cruel dictator who made his people pay for the embargos placed on his country. Others believe three wars and 20 years were more to blame.

(voice-over): To be sure, best estimates say Iraq spent around $20 million on health care in 2002. That's about 68 cents per person. This year, the expenditure will be close to 900 million, or about $40 per person -- most of that money from oil revenues. For reference, in the U.S., around $4,000 is spent per person by the government.

Starting from scratch will not be easy, but both Americans and Iraqis agree that is what needs to be done. For too long, little or no money was spent on the infrastructure needed to provide basic care and prevent disease; $900 million may change that slowly.

(END VIDEOTAPE)

And you really get a sense looking inside that hospital what things are like now. I mean, there were stories of raw sewage, contamination, all sorts of things flowing through those hospitals. We were traveling with the secretary of health, so it was probably a little cleaned up for him, no question. But, you know, they've still got a long way to go. They've got to rebuild an entire country's health care system from scratch.

HEMMER: And the point you make about paying for it though oil revenue. There was a report out just over the weekend that said the oil output is right near the same levels pre-war, which is a good sign if you're looking for money to pay for it.

GUPTA: And they've already increased their health care expenditures by 40 times. The health minister, I talked to him. He said, you know what? I want to even double that. He said, I want about $2 billion a year to pay for this.

HEMMER: Good to have you back here.

GUPTA: Thank you.

HEMMER: Talk to you next hour, Sanjay. All right -- Soledad.

O'BRIEN: Still to come on AMERICAN MORNING, prospective jurors in the Scott Peterson case have a lot of questions to answer before the trial even gets under way. We're going to take you live to California in our next hour.

HEMMER: Also, the Hummer may be first in war and first in peace, but it's just about last in the hearts of consumers. We'll explain that.

O'BRIEN: And, the inside dope on the season premiere of "The Sopranos." Our "90-Second Pop" panel risks life and limb. That's ahead as AMERICAN MORNING continues.

(COMMERCIAL BREAK)

HEMMER: Oh, "90-Second Pop" back today. Say hello this morning to our esteemed panel. Jessica Shaw, "Entertainment Weekly."

Nice to see you back here, Jessica.

JESSICA SHAW, "ENTERTAINMENT WEEKLY": Thank you.

HEMMER: B.J. Sigesmund, staff editor for "US Weekly."

Good morning.

B.J. SIGESMUND, "US WEEKLY": Good morning.

HEMMER: Sarah Bernard, contributing editor for "New York" magazine.

Nice to see you, Sarah.

SARAH BERNARD, "NEW YORK" MAGAZINE: You, too.

HEMMER: How do you like the tunes?

SIGESMUND: Love them.

SHAW: Love them.

HEMMER: Yeah?

SHAW: Eminem.

HEMMER: They waking you up?

SIGESMUND: I like the mix, too, with Starsky up there, also "The Sopranos."

HEMMER: Putting it all together. SHAW: You're all about Snoop here at AMERICAN MORNING.

HEMMER: Very true.

Let's see, Sunday night's "Sopranos." You've seen at least, what, the first episode?

BERNARD: Yes. Yes, I have.

HEMMER: What did you think?

BERNARD: You know, it's really, really good. Last season, it was getting dark. It was really mired in Tony's and Carmela's breakup. And I was feeling like it had lost something about the first couple of years, some of the humor, some of the unexpected perkiness. And it's really all back. David Chase is back on his game. And the most interesting development is that there are a whole bunch of mobsters who were jailed in the '80s that are now coming out, and...

HEMMER: Yes. Retribution?

BERNARD: That's right. Well, they are some of Tony's relatives -- one of them is played by Steve Buscemi, who actually directed one of the best episodes called the "Pine Barrens." You remember the one where Steve -- Christopher and Pauly were kind of wandering around in the woods. So, now he's actually become a character, and he wants, you know, back in on the action.

HEMMER: So...

SHAW: I just want Carmela to get in on the action.

(CROSSTALK)

BERNARD: She's starting to have some action.

SHAW: (UNINTELLIGIBLE) out on people.

BERNARD: She's going to have some of her own action this season.

SIGESMUND: I'm most into the Tony-Dr. Melfi burgeoning romance. Supposedly, he asks her to go to the Bahamas or Bermuda with him, and she has like this weird sex dream about him. I can't wait for that.

SHAW: He's such a dog.

BERNARD: Yes, he is.

SIGESMUND: He's a dog in a good way.

HEMMER: Oh, the complexities in Tony's head, though.

SHAW: That's so true.

HEMMER: You know, Jeff Toobin saw the first two episodes.

BERNARD: And he liked it.

HEMMER: I don't know how he got them, by the way. We'll have to ask him about that. He liked both of them, too.

(CROSSTALK)

HEMMER: A lot of dark humor, but he said it worked.

Let's talk about the box office this weekend. "Starsky and Hutch" is back.

SIGESMUND: Yes, this is going to be...

HEMMER: What do you got? Ben Stiller and Owen Wilson? How did they do?

SIGESMUND: Right. This is going to be the big movie of this weekend. This is a spoof directed by the same guy who did "Old School" and "Road Trip." So, you kind of know what to expect. It basically exploits all of the unintentional humor in the 1970s series, you know, the era of bad perms and leisure suits. Plus, it's got Snoop Dog in there as an informant.

SHAW: But it's actually supposed to be really good.

SIGESMUND: Yes, he's...

SHAW: Like, people are saying he's a serious actor now. Like, this movie is going to do it for him.

BERNARD: Yes, and...

HEMMER: Isn't that amazing how he remakes himself? I love it.

BERNARD: He says he wants an Academy Award. That's his goal. And I think he might (UNINTELLIGIBLE).

SIGESMUND: Him and Michael Jackson.

SHAW: He will, of course, get it, absolutely.

HEMMER: How did they do on screen chemistry? They've made a number of films together.

SIGESMUND: This is actually their fifth movie together. Remember, they were in "Meet the Parents."

HEMMER: "Zoolander."

SIGESMUND: And they were in "Zoolander," of course. They're like this great new team, and they have a schtick. You know, Stiller plays the nevishe (ph) guy, and Owen Wilson is like the cook dude, relaxed and laid back. And it works for them, and they're very bankable.

HEMMER: One critic said it's a predictable rut that they're falling into.

SIGESMUND: Yes.

HEMMER: But based on what you're saying, you didn't buy into it.

SIGESMUND: This movie is pretty predictable. Well, when you go to a movie like this and it's directed by the guy who did "Old School," you sort of know what to expect, which is not much.

SHAW: And also, what else is there out there? Like, a horse movie, you know?

BERNARD: Yes.

SHAW: There's not so much -- I mean...

(CROSSTALK)

SIGESMUND: That should be our segue to "Hidalgo."

HEMMER: Go ahead, quickly.

SIGESMUND: Yes, "Hidalgo," it stars Viggo Mortensen, the guy, of course, from "Lord of the Rings." He plays -- it's set in 1890, and he plays a Pony Express messenger who takes his aging horse to the Middle East for this 3,000 mile race across over the Arabian Desert.

HEMMER: I like it.

SHAW: The poorest movie, totally over...

HEMMER: But did you see it?

SHAW: ... "Seabiscuit" backlash...

HEMMER: You didn't like it? I loved "Seabisuit."

SHAW: Did it win any awards?

HEMMER: No, it didn't, but I thought it should have, though.

SIGESMUND: You know...

BERNARD: This looks like an "Indiana Jones" movie. I mean...

(CROSSTALK)

SIGESMUND: Well, the good reviews -- and it's gotten both good and bad. The good reviews say that parts of it are very much like "Raiders of the Lost Ark." This is a real-guy movie. You know, it's a race.

(CROSSTALK)

HEMMER: It's like "Lawrence of Arabia" a little bit, too.

SIGESMUND: The horse actually...

SHAW: Omar Sharif is in it, also.

SIGESMUND: Omar Sharif is in it.

HEMMER: Yes, there you go.

SIGESMUND: It's more about the horse than it is Hidalgo. I'm sorry -- more about the horse than it is about Viggo.

BERNARD: I don't think anything can overshadow Viggo. Let me just say that right now. A horse is a horse.

SIGESMUND: The horse gets a lot of screen time in this movie.

SHAW: Judging from the size of his head on the poster I think (UNINTELLIGIBLE).

HEMMER: Quickly, Jessica, Steven King premiered last night, "Kingdom Hospital" on ABC. Did you like it?

SHAW: Yes. Well, it was OK. It was long. It's the first of 13 episodes, haunted hospital, talking anteater, if that's your thing.

HEMMER: Does it come together?

SHAW: You know, it wasn't really dark enough for me, like I was kind of hoping that Steven King...

HEMMER: Yes.

SHAW: ... it was going to like be really, really creepy.

SIGESMUND: What I love about this is that Steven King saw this Danish miniseries called "The Kingdom" from the '90s, which I loved. It was very funny and dark. And he sort of rewrote it himself and put in a lot of own personal history...

SHAW: Put in himself.

(CROSSTALK)

BERNARD: That's right.

SHAW: The accident he put in, and it was sort like...

HEMMER: Well, he wrote the thing while he was recovering in bed from that van crash.

SIGESMUND: Right, right.

SHAW: But it's of kind like (UNINTELLIGIBLE) with Dr. Melfi, you know.

(CROSSTALK)

HEMMER: We've got to leave it there. Thanks, Jessica. Good to see you. B.J., Sarah, have a good day, all right?

Here's Soledad again -- Soledad.

O'BRIEN: Still to come this morning, one low-cost carrier says it's in it for the long haul, and it's taking things overseas. We'll explain up next.

Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Sales of a high-profile SUV are cooling, and one carrier in the air has some big plans.

Andy Serwer is "Minding Your Business" this morning.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you. We're going to do a transportation segment, OK?

O'BRIEN: Fantastic.

SERWER: All right, let's talk about the Hummer. Obviously, this car has been red hot for a couple of years now. But are sales cooling off? Yes, in fact, they are. Not making the people at General Motors very happy.

Sales of the H2 down six months in a row. Last year, they sold 35,000 of these puppies. And the H3 is rolling out.

Why are the sales down? Well, how about this: Can you say saturation? How big can this market be? Also, gas prices...

JACK CAFFERTY, CNN ANCHOR: It's an ugly car?

SERWER: Oh, Jack doesn't like it.

O'BRIEN: I think it's a cute car.

SERWER: Well, so much for your Christmas present.

HEMMER: What's the retail on that, like 52 grand?

SERWER: It's 48,000.

(CROSSTALK)

HEMMER: Oh, it's come down a bit.

SERWER: Right, yes.

(CROSSTALK)

SERWER: The H1 one was 100, so, you know, they really have come down. That's right. Let's talk about airlines, though. JetBlue, that would be JetBlue, the 4-year-old discount airline, very, very hot. This is a company that's really been growing at a very fast rate, now expanding overseas. They're going to the Caribbean, which could be a lot of fun, because they have those leather seats and they have those TVs which are...

O'BRIEN: I live TV.

HEMMER: Yes.

SERWER: I don't want to sound like I'm going for this thing, but if you've got little kids, those TVs in the seat are -- they're fantastic.

O'BRIEN: Just pop them there, throw it on.

SERWER: Yes.

HEMMER: He's giving you ideas, Soledad.

O'BRIEN: If I ever have all of those ideas, believe me. TV?

HEMMER: (UNINTELLIGIBLE) day before.

SERWER: Already the biggest airline at JFK now.

HEMMER: Is that so?

O'BRIEN: Really?

SERWER: Yes, they are.

O'BRIEN: Wow!

SERWER: Interesting.

O'BRIEN: Do the market update.

SERWER: OK, very quickly. A mixed day yesterday. Dow was up. Nasdaq down. Of course, that big jobs report coming on Friday. We're waiting for that. Two stocks in the news today. Martha Stewart coming out. They have a profit, but warning about the first quarter. And ImClone -- why are these two companies always in the news? Billionaire Carl Icon (ph) is saying he's got a stake. That stock is moving in the pre-market. We'll be watching those.

(CROSSTALK)

O'BRIEN: Interesting, all right.

SERWER: Yes.

O'BRIEN: And we're also going to be talking a little more about Disney coming up in the top of our next hour.

SERWER: We will.

O'BRIEN: All right, thanks, Andy.

SERWER: You're welcome.

HEMMER: Here's Jack, question of the day now.

CAFFERTY: Thanks, Bill.

President Bush's new campaign commercials are on the air around parts of the country, and they include images of ground zero and the terrorist attacks of September 11.

One New York newspaper reports the families of the victims are furious. They accuse the president of exploiting the national tragedy. Administration officials defend the spots, saying the imagery is appropriate, because September 11 was -- quote -- "a defining moment of these times" -- unquote.

So, we wanted your opinion: Is it appropriate to use images of September 11 in political ads? Hundreds of people responded. I mean, like that. So, there's some emotion around this out there.

Jeff in Sarasota, Florida: "The use of September 11 footage in Bush campaign ads is vulgar in the extreme. The arrogance and audacity of the Bush administration is mind boggling. If anything, the imperialist attitude that Bush represents is responsible for the September 11th attacks."

Charlie in Virginia writes: "Without a doubt, George Bush deserves the right to have a flash picture of the remains of the Twin Towers in his ads. He faced that huge problem without a stumble, and should get an 'at a boy' from the entire country for doing so."

Natalie in Mount Lookout, West Virginia: "One question: If there's another attack prior to the election, which is a real possibility, does John Kerry get to use those images in his ads? Just wondering."

Lorraine in Leesburg, Indiana: "No, but since when has Bush cared about propriety? The photo-op at ground zero with the hard hat, the megaphone, the stunt on the Lincoln" -- that's the aircraft carrier -- "Thanksgiving in Baghdad, he's been campaigning for re- election since a month after he was sworn in and on the taxpayer's nickel."

And Paul from Pennsylvania, Hellertown, writes: "Throughout the September 11 tragedy, President Bush for once actually looked and acted presidential. So, give him a break and let him use the event to his political advantage during this final eight months in the White House, but make sure he leaves the flight suit behind."

AM@cnn.com.

HEMMER: Hundreds already, huh?

O'BRIEN: Wow!

CAFFERTY: Yes, just -- I mean, a very quick and big response.

HEMMER: Here's the question. The fingers, the shadows of 9/11, stretches into all aspects of our society even today. How do you run a campaign without referencing it? Or is it the images themselves that have people concerned?

CAFFERTY: Well, nobody is talking about him not referencing it. They're talking about pictures...

O'BRIEN: Right.

CAFFERTY: ... of the place where 3,000 people died and shots that suggest the removal of human remains in a political ad.

O'BRIEN: It's not surprising to me that it's emotional at all.

SERWER: Right.

O'BRIEN: It doesn't shock me.

HEMMER: And you can understand how people would be furious.

SERWER: And it is a question of degree, as you said, because you have to mention it. It's unavoidable.

O'BRIEN: Yes.

SERWER: But do you use those images?

O'BRIEN: (UNINTELLIGIBLE). Well, we'll see what people say.

HEMMER: David Gergen is up. He knows a few things about...

O'BRIEN: Yes, he does.

HEMMER: ... PR and political campaigns. We'll talk to him in the next hour.

O'BRIEN: All right. And still to come this morning, the people who will decide the fate of Scott Peterson in his murder trial about to be chosen. It's going to be a long process, though. We've got details on that just ahead as AMERICAN MORNING continues.

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Rebuilding Iraq's Civilian Health Care System>