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Delay at Signing of Iraq's Interim Constitution; Head of CIA Testifies before House Intelligence Committee

Aired March 05, 2004 - 10:00   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.


DARYN KAGAN, CNN ANCHOR: Good morning, everyone. From CNN headquarters in Atlanta, I'm Daryn Kagan. And here are the latest headlines at this hour.
A delay at the signing of Iraq's interim constitution, some Shiite members of the Iraq Governing Council, apparently have balked at signing the document. That signing ceremony was supposed to take place a couple of hours ago; no word yet on when that might take place. The new legal framework is scheduled to take effect this summer.

In Haiti, a semblance of security is now being provided by about 1600 international troops. Many of them are U.S. Marines. Besides patrolling sections of the capitol, the Marines have now moved into Cap-Haitien, the second largest city.

On Capitol Hill, the head of the CIA will testify before the House Intelligence Committee today. A live picture of someone's ear there on Capitol Hill. The hearing is closed to the public and the press. George Tenet went before the Senate Intelligence Committee yesterday, where he was grilled about pre-war intelligence on Iraq.

And at President Bush's Texas ranch, a visible sign of improving relations with the leader of Mexico. President Vicente Fox will be a guest at the ranch later today. Relations have been strained since Mr. Fox cancelled a visit two years ago over the U.S. execution of a Mexican national.

Our lead story at this hour, a severe case of gallstones has landed Attorney General John Ashcroft in intensive care. Our medical correspondent Dr. Sanjay Gupta joins us from New York to explain the condition and the prognosis for the attorney general.

Sanjay, good morning.

DR. SANJAY GUPTA, CNN CORRESPONENT: Good morning, Daryn. Yes, it's a pretty serious situation gallstones. Everyone's heard of those. But when it actually develops into something known as gallstone pancreatitis, that's a much more complicated thing. All sorts of symptoms can sort of present with this sort of thing. Patients can have back pain, abdominal pain, nausea, fever. Oftentimes because -- just a mechanical problem. The ducts within the pancreas get blocked up and those enzymes start to elevate. And that can be really problematic for the attorney general.

KAGAN: What causes this to happen, Sanjay?

GUPTA: That's a good question. You know, typically when you think of gallstones, most doctors think of gallstones, they think of women. They think of women who are in their 40s typically. Older men can also develop gallstones obviously as we see here. Alcohol can also be a precipitating factor. In the attorney general's case, it appears to be more related to gal stones, an actual mechanical obstruction. You can see the numbers there, 20 million American adults, a pretty common thing. But of those, only 5 percent develop gallstone disease, and even a smaller percentage actually develop gallstone disease, to the point where it affects the pancreas -- Daryn.

KAGAN: Finally, what kind of danger is the attorney general in?

GUPTA: Well, you know, years ago, before they really knew how to treat this sort of thing, it could be a very serious thing. And that's not to underplay how serious it is. But it's also very treatable nowadays. A couple of things: one is that antibiotics are often used to try and cool down the pancreas. It's likely he's in the intensive care unit receiving those antibiotics, receiving pain medications.

After that it's going to be sort of trying to address the mechanical nature of this. Where are these stones exactly? How should they best be taken out? Does he need an operation or can it just be a stint actually being placed into one of the ducts. So you can see the diagram there, Daryn. The green is the gallbladder. Those black things in there are the stones. Sometimes they sort of pass down the little duct there and will actually get stuck. And if they get stuck in such a position that it blocks the pancreas, then you have gallstone pancreatitis. Getting those stones out, that's the name of the game. An operation or another procedure may be needed there -- Daryn.

KAGAN: A new meaning to enemy combatant inside the attorney General's body today. We wish him well in feeling better.

GUPTA: We do.

KAGAN: Sanjay, thank you.

GUPTA: Thank you.

KAGAN: Now we move on to President Bush's re-election campaign on the air and near Ground Zero. Some people who lost loved ones in the 9/11 attacks, are holding a news conference at this hour protesting the president's newest political ad. They used fleeting images of the tragedy and they are raising questions of propriety. One woman who lost her husband in the attack on the World Trade Center spoke earlier on "AMERICAN MORNING." She criticized the president's use of the ads and his cooperation or lack there of with the 9/11 Commission.

(BEGIN VIDEO CLIP) KRISTIN BREITWEISER, HUSBAND KILLED ON 9/11: I don't think it's appropriate to use the imagery of death and destruction in an ad for political gain. I think that you can't ignore September 11, and certainly in this election year. I want them to discuss the issues. I want them to debate the issues. I want the candidates to tell what they would have done differently or what they feel their role as a leader is. But to use the imagery, it is very different discussing the issue than using the imagery in an ad for political gain.

(END VIDEO CLIP)

KAGAN: Meanwhile Rudolph Giuliani, New York's mayor at the time of the attacks, is defending the Bush campaign's use of the 9/11 images. The Republican who received lavish praise for his handling of the crisis say in his words, "The ads reflect a shared experience."

(BEGIN VIDEO CLIP)

RUDY GIULIANI, FMR. NEW YORK MAYOR: September 11, people have very, very different emotional views about it. But I think the president is quite correct to point out that this is one of the challenges that he faced. And in my opinion, he faced in a really very, very superb way for this country. I mean it's hard for me to think of having had more support, more strength, more of a sense of purpose, and having lived through it and being there with the president on September 14, than President Bush and Vice President Cheney brought to this.

(END VIDEO CLIP)

KAGAN: The former mayor would not say if he too would use the 9/11 images if he seeks a future office. Mr. Giuliani publicly has supported Mr. Bush's re-election.

One of the most enduring images of Ground Zero is now on a credit card and spurring criticism of its known. The MNBA credit card is dubbed "Spirit of America," and it shows firefighters raising a flag over the ruins of the World Trade Center. Families of those killed there are calling it "crass and tasteless."

We are just about at five minutes past the hour. We turn to the southwestern part of the U.S.; the first signs of spring charging in like a lion. Tornadoes were reported yesterday across much of Texas. At least a dozen counties say roofs were peeled off homes, tractor- trailers were flipped, and mobile homes were toppled. Only minor injuries have been reported. Check out the scene from Phoenix, Arizona, pummeled by hail and lashed by flash floodings, motorists were trapped by rapidly rising waters.

Lots of news to get to though, first to Iraq. Some last-minute concerns have delayed the signing of the interim constitution that paves the way to elections and self-rule. One official tells CNN, the delay could be substantial but the landmark achievement is not in jeopardy.

Our Baghdad bureau chief Jane Arraf, joins us from the capitol on more about what is causing the problem.

Jane, hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Hello, Daryn. We've just spoken to one of the members of the Governing Council, who has been in a hall not very far with the rest of the council members, trying to sort this out. Now essentially what it is, according to Mamoud Othman, one of the Kurdish members of Parliament, is a walkout by some of the Shiia members objecting, he says, at the last minute to a clause in the constitution. That means essentially, the Kurds, or even Sunnis, would be able to veto a constitution if they had enough people.

Now, this has come up at the last minute. Everything was ready here. The pens were ready for signing. The chairs were set. And just before it started it became apparent that it was not going to be signed. Now they say they still hope to sign it, but in speaking to this Governing Council member, it does sound like a very serious disagreement -- Daryn.

KAGAN: And, Jane, what about the provisions that are made for women in this constitution?

ARRAF: Well, the ones made for women are actually quite remarkable. They don't seem to be at issue. They provide for 25 percent, a target of 25 percent of people elected, when they do hold full elections, perhaps by the next -- by end of January, to be women. Which is really unheard of anywhere in this region. It's actually unheard in almost any country. It's something they were very proud of.

But what they have come down to, Daryn, seems to be much more fundamental. It is a disagreement by some Shiia members, essentially saying that they do not want Kurdish provinces or Sunni provinces to be able to veto this constitution when it becomes permanent.

KAGAN: Hmm. All right, a big snag to get over before this is all done. Thank you so much, Jane Arraf in Baghdad.

Well, Iraq's interim constitution came only after divisive debates among Governing Council members. Clearly those debates are still going on. It does include a number of compromises; but most of Iraq's political leaders are praising it as a framework that will guide the nation through its early days of self-rule.

(BEGIN VIDEO CLIP)

DR. ADNAN PACHACHI, IRAQI GOVERNING COUNCIL: I think it's a great day, it's an important day in the history of Iraq because for the first time, we have a bill of rights which can rival any all over the world. And there are basic, fundamental rights that cannot be tampered with, or changed, or reduced. And this is something quite new for Iraq, and even I would say for the region as a whole.

(END VIDEO CLIP)

KAGAN: We will continue to monitor the developments in Baghdad.

Meanwhile, British Prime Minister Tony Blair today launched a fiery defense of his decision to join the war on Iraq. A move that has soured his popularity among his countrymen. Mr. Blair concedes the war remains divisive even now, but says the progress as seen today, shows it was the right decision. And the danger of terrorism, he says, may loom larger than ever.

(BEGIN VIDEO CLIP)

TONY BLAIR, PRIME MINISTER, UNITED KINGDOM: I have no doubt Iraq is better without Saddam. But no doubt either that as a result of his removal, the dangers of the threat we face will be diminished. But that is not to say the terrorists won't redouble their efforts. They will. This war is not ended. It may only be at the beginning at the end of the first phase.

(END VIDEO CLIP)

KAGAN: Mr. Blair also warned that ignoring the threat of terrorism would put his country in, what he believes, will be mortal danger.

For all the latest from Iraq visit our continually updated web site. The address is cnn.com/Iraq.

Usama bin Laden on the move? That is what the U.S. military expects. We'll show you what's being done to try to track him.

And will this be a day that the jury in the Martha Stewart trial renders a verdict? We are live outside the courthouse.

And later...

(BEGIN VIDEO CLIP)

OWEN WILSON, ACTOR: Don't give up on us baby. Lord knows we've come this far...

(END VIDEO CLIP)

KAGAN: ... have some fits and giggles here on Friday. They're singing for their supper, "Starsky & Hutch" from the big screen. Ben Stiller, Owen Wilson with us here live, talking about the new "Starsky & Hutch" movie.

(COMMERCIAL BREAK)

KAGAN: Deliberations resume in hour in the Martha Stewart case. The jurors' attention seems to be focused more on her former stockbroker and co-defendant, at this hour at least.

Our Mary Snow has been following the proceedings and she joins us from outside the federal courthouse.

Mary, good morning. MARY SNOW, CNN CORRESPONDENT: Good morning, Daryn. Yes, it's Day 3 of deliberations. And late yesterday, one of the latest notes that came from the jury was about Martha Stewart's co-defendant, Peter Bacanovic. The jury had sent out a question pertaining to the charge of perjury against him. The judge, saying this morning that this jury is obviously a very careful and intelligent jury, asking a very relevant question. The question they had asked was about one of the aspects of that perjury charge, whether or not a witness and a phone log can be considered two witnesses.

And to that, the judge this morning ruled yes, it can. Bottom- line there is, it's not a good indication for Stewart's co-defendant, Peter Bacanovic. His lawyers tried to fight the judge on this. She had assigned them yesterday -- late yesterday, homework, saying she wanted an answer. They submitted a number of cases, saying they searched "all night," in their words, in terms of previous cases, trying to prevent her from indicating a positive answer to that question. But the judge said no, her answer would stay firm.

She just sent a note back to the jury. And this is pertaining to Count 6. So lot of speculation about the order. Was the jury going in order? If so, there are two more counts. But it's not clear that the jury is going in that order. So hard to tell. Lot of reading of the tealeaves. But one thing about this jury, very thorough. They asked for a number of pieces of evidence yesterday -- Daryn.

KAGAN: Mary Snow in Manhattan, thank you. Keeping track of things at that trial, we will check back.

In the same-sex marriage debate, a number of legal developments. The City of San Francisco plans to file legal briefs in the state Supreme Court. California is challenging the legality of thousands of marriages of gay couples in recent weeks. The city argues that homosexuals have the right to marry. And far up the West Coast in Seattle, the ACLU says it's going to join the legal battle to secure marriage rights for gays and lesbians in Washington State.

Coming up on CNN's LIVE TODAY, sexy guys from the 1970s. They have been reborn in a new century. Can their new moves make a box office mark?

And earn some money working at home. Gerri Willis had to come into the office to earn her keep today. But we're glad to have her.

Hi Ger.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. It's good to be king, or at least your own boss. We'll tell you how to set up your own home office, the best way to do it. Stay with us on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: Perhaps you're working at home this morning. Operating a business from your home, it can be a great source of income and freedom; also the basis for a tax deduction or a few of those. And there are other advantages and strategies you should know about. Which happens to be the topic, conveniently, of today's "Top Five Tips." Personal finance correspondent Gerri Willis of CNNfn here to explain.

Good morning, Ger.

WILLIS: Hey, Daryn. Good to see you. You know, a lot of people think about home business with those jobs numbers we had today, people looking for other options for making money. One good way, have your job at home. And of course, you're going to get a tax break, but it may not be as easy as you think.

You have to absolutely dedicate some portion of your house to that home business. And it has to be clear that you're not using it for something else. So you can't have a corner of the kitchen or maybe the den turned into an office. It has to be exclusively used for that purpose. Go to the our web site, money.com. We have some details there about how you can actually compute that deduction. It's a little complicated but still doable -- Daryn.

KAGAN: All right. What about insurance?

WILLIS: You know, the folks at the Independence Insurance and Brokers of America, they say most people don't have insurance for their home business. In fact, 60 percent do not. And guess what? You're going to need, because look, anything can happen. There are three things -- three ways actually, that you might get insurance for your home business. You can just have an endorsement on your home policy, your homeowners' policy. Or you can have a combined policy homeowner and business. Or you can have a simple business policy. But keep in mind your homeowners insurance is not going to cover problems with your business.

KAGAN: OK, because you have to pay for things like extra insurance, you're going to try to save money in other places.

WILLIS: That's right. If you're starting a new business, you're probably doing it on a shoestring. You're looking for savings anywhere you can find them. Billsaver.com can help you save money on your long distance calls.

And here's a little tip, Daryn, I've never heard before. I think it's brilliant. Listen to this. They told us that you want to buy plans that bill you in increments of six seconds. Why? Well, if you're a business owner, you're probably making lots of phone calls all the time, leaving messages. They're really short phone calls and you don't want to be charged a lot for each one. So, keep that in the back of your head. And remember you can get your phone service and your internet service sometimes bundled into the same plan. It's cheaper that way. Check out billsaver.com.

KAGAN: What's your advice for the little guys out there trying to compete with the big companies?

WILLIS: Well, you have got to find ways to make yourself look big. And one way is to get a really great accounting software program. "P.C." magazine recently reviewed a lot of these. A couple of the ones they recommended, Quick Books and Peach Tree Premium. Now, it will make you look bigger, but you're going to have to pay for it. Check out all the details at pcmagazine.com. And also, think about getting a virtual assistant at assistyou.com. I think we all could use that -- Daryn.

KAGAN: Yes, I could use a virtual one and a real one, and lots of ones. What about other resources that are out there?

WILLIS: Well, there are a couple websites that new business operators should definitely check out sba.gov, is the Small Business Administration. They give you lots of advice. They even give you a training network. And check out score.org., they also council small business.

You know, everyone's going to want to give you advice on your new small business, make sure you go to the best resources -- Daryn.

KAGAN: And we have done just that today.

WILLIS: That's very nice.

KAGAN: Gerri Willis, thank you for that. You have a great weekend.

WILLIS: You, too.

KAGAN: Pressing the hunt for Usama bin Laden, trying to force the al Qaeda leader out of hiding. We'll show you how they plan to find him.

And a little girl left paralyzed after a car accident. Her family is awarded millions by a jury; But Ford says that's wrong. The story coming up on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: Let's take a look at the top stories at this hour.

A last-minute pitch has the delayed this morning's scheduled signing of Iraq's transitional constitution. The nation's Governing Council has assembled for the ceremony a few hours ago, but they are told -- were told actually, that several Shiite members cited concerns and want those concerns resolved before they sign. An official tells CNN, the delay could be substantial, but the historic framework is not in jeopardy.

In Washington State a superior court judge has ruled that two 13- year-old boys will be tried as adults in the death of a playmate. The boys were 12 at the time of the crime. They will face first-degree murder charges. They are accused of beating and stabbing a boy, who was physically and mentally handicapped.

The man accused of kidnapping a missing college student is in a North Dakota courtroom this morning. Convicted sex offender, Alphonso Rodriquez, Junior is the primary suspect in the November disappearance of 22-year-old Dru Sjodin. Today's hearing is to determine whether to proceed to trial against Rodriguez, who maintains his innocence.

Baseball slugger, Barry Bonds has a new voice coming to his defense in the sports steroid scandal. Lawyers representing two men accused in the drug distribution ring, say Bonds never received steroids from the lab at the center of the federal investigation. Bonds has denied using steroids.

And we have the latest coming out of the Martha Stewart trial. We understand that the jury has come back to the judge with yet another question. Let's go to Mary Snow in Lower Manhattan to find out what that is about -- Mary.

SNOW: Hi, Daryn. Well, their question really relates to what happened yesterday. And this is about Peter Bacanovic, the co- defendant in this case. Not a good indication for his team. Basically, it comes down to this. The jury yesterday, sent out a question about the perjury count, Count 6. And particularly about one item, a Specification 1, and this was about whether or not he committed perjury by his testimony regarding a phone message that he gave to Martha Stewart's assistant in -- on December 2001. That's the day that show sold her Imclone stock.

And this count, in order to find someone guilty of this charge, you have to find that two witnesses will corroborate the claim. Basically, what happened was the jurors sent out a note to the judge saying, can the testimony of this one witness, Martha Stewart's assistant, be corroborated by the same person's phone logs that she kept in the course of her business? This sent off a lot of legal research. The judge told Bacanovic's team go and research this. They came back today. They submitted their papers. And the judge said after reading through everything that, yes, that the phone log can be considered a second witness in corroboration of the testimony of that same witness.

So bottom line, this is not a good indication for Peter Bacanovic because on this purjury charge, there are a number of specifications the judge informed the jurors that they only needed to find one of those specifications in order for a conviction.

Bacanovic's team, his lawyer said they looked all night for a case. They disagreed with the judge, took exception, but in the end she ruled this was two witnesses. She said this was not an easy question. And the fact that the jury was even asking it shows they are very careful and intelligent -- Daryn.

KAGAN: All right. We'll see what this is all adding up to when they come out with their verdict. Mary Snow, thank you.

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CIA Testifies before House Intelligence Committee>


Aired March 5, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning, everyone. From CNN headquarters in Atlanta, I'm Daryn Kagan. And here are the latest headlines at this hour.
A delay at the signing of Iraq's interim constitution, some Shiite members of the Iraq Governing Council, apparently have balked at signing the document. That signing ceremony was supposed to take place a couple of hours ago; no word yet on when that might take place. The new legal framework is scheduled to take effect this summer.

In Haiti, a semblance of security is now being provided by about 1600 international troops. Many of them are U.S. Marines. Besides patrolling sections of the capitol, the Marines have now moved into Cap-Haitien, the second largest city.

On Capitol Hill, the head of the CIA will testify before the House Intelligence Committee today. A live picture of someone's ear there on Capitol Hill. The hearing is closed to the public and the press. George Tenet went before the Senate Intelligence Committee yesterday, where he was grilled about pre-war intelligence on Iraq.

And at President Bush's Texas ranch, a visible sign of improving relations with the leader of Mexico. President Vicente Fox will be a guest at the ranch later today. Relations have been strained since Mr. Fox cancelled a visit two years ago over the U.S. execution of a Mexican national.

Our lead story at this hour, a severe case of gallstones has landed Attorney General John Ashcroft in intensive care. Our medical correspondent Dr. Sanjay Gupta joins us from New York to explain the condition and the prognosis for the attorney general.

Sanjay, good morning.

DR. SANJAY GUPTA, CNN CORRESPONENT: Good morning, Daryn. Yes, it's a pretty serious situation gallstones. Everyone's heard of those. But when it actually develops into something known as gallstone pancreatitis, that's a much more complicated thing. All sorts of symptoms can sort of present with this sort of thing. Patients can have back pain, abdominal pain, nausea, fever. Oftentimes because -- just a mechanical problem. The ducts within the pancreas get blocked up and those enzymes start to elevate. And that can be really problematic for the attorney general.

KAGAN: What causes this to happen, Sanjay?

GUPTA: That's a good question. You know, typically when you think of gallstones, most doctors think of gallstones, they think of women. They think of women who are in their 40s typically. Older men can also develop gallstones obviously as we see here. Alcohol can also be a precipitating factor. In the attorney general's case, it appears to be more related to gal stones, an actual mechanical obstruction. You can see the numbers there, 20 million American adults, a pretty common thing. But of those, only 5 percent develop gallstone disease, and even a smaller percentage actually develop gallstone disease, to the point where it affects the pancreas -- Daryn.

KAGAN: Finally, what kind of danger is the attorney general in?

GUPTA: Well, you know, years ago, before they really knew how to treat this sort of thing, it could be a very serious thing. And that's not to underplay how serious it is. But it's also very treatable nowadays. A couple of things: one is that antibiotics are often used to try and cool down the pancreas. It's likely he's in the intensive care unit receiving those antibiotics, receiving pain medications.

After that it's going to be sort of trying to address the mechanical nature of this. Where are these stones exactly? How should they best be taken out? Does he need an operation or can it just be a stint actually being placed into one of the ducts. So you can see the diagram there, Daryn. The green is the gallbladder. Those black things in there are the stones. Sometimes they sort of pass down the little duct there and will actually get stuck. And if they get stuck in such a position that it blocks the pancreas, then you have gallstone pancreatitis. Getting those stones out, that's the name of the game. An operation or another procedure may be needed there -- Daryn.

KAGAN: A new meaning to enemy combatant inside the attorney General's body today. We wish him well in feeling better.

GUPTA: We do.

KAGAN: Sanjay, thank you.

GUPTA: Thank you.

KAGAN: Now we move on to President Bush's re-election campaign on the air and near Ground Zero. Some people who lost loved ones in the 9/11 attacks, are holding a news conference at this hour protesting the president's newest political ad. They used fleeting images of the tragedy and they are raising questions of propriety. One woman who lost her husband in the attack on the World Trade Center spoke earlier on "AMERICAN MORNING." She criticized the president's use of the ads and his cooperation or lack there of with the 9/11 Commission.

(BEGIN VIDEO CLIP) KRISTIN BREITWEISER, HUSBAND KILLED ON 9/11: I don't think it's appropriate to use the imagery of death and destruction in an ad for political gain. I think that you can't ignore September 11, and certainly in this election year. I want them to discuss the issues. I want them to debate the issues. I want the candidates to tell what they would have done differently or what they feel their role as a leader is. But to use the imagery, it is very different discussing the issue than using the imagery in an ad for political gain.

(END VIDEO CLIP)

KAGAN: Meanwhile Rudolph Giuliani, New York's mayor at the time of the attacks, is defending the Bush campaign's use of the 9/11 images. The Republican who received lavish praise for his handling of the crisis say in his words, "The ads reflect a shared experience."

(BEGIN VIDEO CLIP)

RUDY GIULIANI, FMR. NEW YORK MAYOR: September 11, people have very, very different emotional views about it. But I think the president is quite correct to point out that this is one of the challenges that he faced. And in my opinion, he faced in a really very, very superb way for this country. I mean it's hard for me to think of having had more support, more strength, more of a sense of purpose, and having lived through it and being there with the president on September 14, than President Bush and Vice President Cheney brought to this.

(END VIDEO CLIP)

KAGAN: The former mayor would not say if he too would use the 9/11 images if he seeks a future office. Mr. Giuliani publicly has supported Mr. Bush's re-election.

One of the most enduring images of Ground Zero is now on a credit card and spurring criticism of its known. The MNBA credit card is dubbed "Spirit of America," and it shows firefighters raising a flag over the ruins of the World Trade Center. Families of those killed there are calling it "crass and tasteless."

We are just about at five minutes past the hour. We turn to the southwestern part of the U.S.; the first signs of spring charging in like a lion. Tornadoes were reported yesterday across much of Texas. At least a dozen counties say roofs were peeled off homes, tractor- trailers were flipped, and mobile homes were toppled. Only minor injuries have been reported. Check out the scene from Phoenix, Arizona, pummeled by hail and lashed by flash floodings, motorists were trapped by rapidly rising waters.

Lots of news to get to though, first to Iraq. Some last-minute concerns have delayed the signing of the interim constitution that paves the way to elections and self-rule. One official tells CNN, the delay could be substantial but the landmark achievement is not in jeopardy.

Our Baghdad bureau chief Jane Arraf, joins us from the capitol on more about what is causing the problem.

Jane, hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Hello, Daryn. We've just spoken to one of the members of the Governing Council, who has been in a hall not very far with the rest of the council members, trying to sort this out. Now essentially what it is, according to Mamoud Othman, one of the Kurdish members of Parliament, is a walkout by some of the Shiia members objecting, he says, at the last minute to a clause in the constitution. That means essentially, the Kurds, or even Sunnis, would be able to veto a constitution if they had enough people.

Now, this has come up at the last minute. Everything was ready here. The pens were ready for signing. The chairs were set. And just before it started it became apparent that it was not going to be signed. Now they say they still hope to sign it, but in speaking to this Governing Council member, it does sound like a very serious disagreement -- Daryn.

KAGAN: And, Jane, what about the provisions that are made for women in this constitution?

ARRAF: Well, the ones made for women are actually quite remarkable. They don't seem to be at issue. They provide for 25 percent, a target of 25 percent of people elected, when they do hold full elections, perhaps by the next -- by end of January, to be women. Which is really unheard of anywhere in this region. It's actually unheard in almost any country. It's something they were very proud of.

But what they have come down to, Daryn, seems to be much more fundamental. It is a disagreement by some Shiia members, essentially saying that they do not want Kurdish provinces or Sunni provinces to be able to veto this constitution when it becomes permanent.

KAGAN: Hmm. All right, a big snag to get over before this is all done. Thank you so much, Jane Arraf in Baghdad.

Well, Iraq's interim constitution came only after divisive debates among Governing Council members. Clearly those debates are still going on. It does include a number of compromises; but most of Iraq's political leaders are praising it as a framework that will guide the nation through its early days of self-rule.

(BEGIN VIDEO CLIP)

DR. ADNAN PACHACHI, IRAQI GOVERNING COUNCIL: I think it's a great day, it's an important day in the history of Iraq because for the first time, we have a bill of rights which can rival any all over the world. And there are basic, fundamental rights that cannot be tampered with, or changed, or reduced. And this is something quite new for Iraq, and even I would say for the region as a whole.

(END VIDEO CLIP)

KAGAN: We will continue to monitor the developments in Baghdad.

Meanwhile, British Prime Minister Tony Blair today launched a fiery defense of his decision to join the war on Iraq. A move that has soured his popularity among his countrymen. Mr. Blair concedes the war remains divisive even now, but says the progress as seen today, shows it was the right decision. And the danger of terrorism, he says, may loom larger than ever.

(BEGIN VIDEO CLIP)

TONY BLAIR, PRIME MINISTER, UNITED KINGDOM: I have no doubt Iraq is better without Saddam. But no doubt either that as a result of his removal, the dangers of the threat we face will be diminished. But that is not to say the terrorists won't redouble their efforts. They will. This war is not ended. It may only be at the beginning at the end of the first phase.

(END VIDEO CLIP)

KAGAN: Mr. Blair also warned that ignoring the threat of terrorism would put his country in, what he believes, will be mortal danger.

For all the latest from Iraq visit our continually updated web site. The address is cnn.com/Iraq.

Usama bin Laden on the move? That is what the U.S. military expects. We'll show you what's being done to try to track him.

And will this be a day that the jury in the Martha Stewart trial renders a verdict? We are live outside the courthouse.

And later...

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OWEN WILSON, ACTOR: Don't give up on us baby. Lord knows we've come this far...

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KAGAN: ... have some fits and giggles here on Friday. They're singing for their supper, "Starsky & Hutch" from the big screen. Ben Stiller, Owen Wilson with us here live, talking about the new "Starsky & Hutch" movie.

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KAGAN: Deliberations resume in hour in the Martha Stewart case. The jurors' attention seems to be focused more on her former stockbroker and co-defendant, at this hour at least.

Our Mary Snow has been following the proceedings and she joins us from outside the federal courthouse.

Mary, good morning. MARY SNOW, CNN CORRESPONDENT: Good morning, Daryn. Yes, it's Day 3 of deliberations. And late yesterday, one of the latest notes that came from the jury was about Martha Stewart's co-defendant, Peter Bacanovic. The jury had sent out a question pertaining to the charge of perjury against him. The judge, saying this morning that this jury is obviously a very careful and intelligent jury, asking a very relevant question. The question they had asked was about one of the aspects of that perjury charge, whether or not a witness and a phone log can be considered two witnesses.

And to that, the judge this morning ruled yes, it can. Bottom- line there is, it's not a good indication for Stewart's co-defendant, Peter Bacanovic. His lawyers tried to fight the judge on this. She had assigned them yesterday -- late yesterday, homework, saying she wanted an answer. They submitted a number of cases, saying they searched "all night," in their words, in terms of previous cases, trying to prevent her from indicating a positive answer to that question. But the judge said no, her answer would stay firm.

She just sent a note back to the jury. And this is pertaining to Count 6. So lot of speculation about the order. Was the jury going in order? If so, there are two more counts. But it's not clear that the jury is going in that order. So hard to tell. Lot of reading of the tealeaves. But one thing about this jury, very thorough. They asked for a number of pieces of evidence yesterday -- Daryn.

KAGAN: Mary Snow in Manhattan, thank you. Keeping track of things at that trial, we will check back.

In the same-sex marriage debate, a number of legal developments. The City of San Francisco plans to file legal briefs in the state Supreme Court. California is challenging the legality of thousands of marriages of gay couples in recent weeks. The city argues that homosexuals have the right to marry. And far up the West Coast in Seattle, the ACLU says it's going to join the legal battle to secure marriage rights for gays and lesbians in Washington State.

Coming up on CNN's LIVE TODAY, sexy guys from the 1970s. They have been reborn in a new century. Can their new moves make a box office mark?

And earn some money working at home. Gerri Willis had to come into the office to earn her keep today. But we're glad to have her.

Hi Ger.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. It's good to be king, or at least your own boss. We'll tell you how to set up your own home office, the best way to do it. Stay with us on CNN LIVE TODAY.

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KAGAN: Perhaps you're working at home this morning. Operating a business from your home, it can be a great source of income and freedom; also the basis for a tax deduction or a few of those. And there are other advantages and strategies you should know about. Which happens to be the topic, conveniently, of today's "Top Five Tips." Personal finance correspondent Gerri Willis of CNNfn here to explain.

Good morning, Ger.

WILLIS: Hey, Daryn. Good to see you. You know, a lot of people think about home business with those jobs numbers we had today, people looking for other options for making money. One good way, have your job at home. And of course, you're going to get a tax break, but it may not be as easy as you think.

You have to absolutely dedicate some portion of your house to that home business. And it has to be clear that you're not using it for something else. So you can't have a corner of the kitchen or maybe the den turned into an office. It has to be exclusively used for that purpose. Go to the our web site, money.com. We have some details there about how you can actually compute that deduction. It's a little complicated but still doable -- Daryn.

KAGAN: All right. What about insurance?

WILLIS: You know, the folks at the Independence Insurance and Brokers of America, they say most people don't have insurance for their home business. In fact, 60 percent do not. And guess what? You're going to need, because look, anything can happen. There are three things -- three ways actually, that you might get insurance for your home business. You can just have an endorsement on your home policy, your homeowners' policy. Or you can have a combined policy homeowner and business. Or you can have a simple business policy. But keep in mind your homeowners insurance is not going to cover problems with your business.

KAGAN: OK, because you have to pay for things like extra insurance, you're going to try to save money in other places.

WILLIS: That's right. If you're starting a new business, you're probably doing it on a shoestring. You're looking for savings anywhere you can find them. Billsaver.com can help you save money on your long distance calls.

And here's a little tip, Daryn, I've never heard before. I think it's brilliant. Listen to this. They told us that you want to buy plans that bill you in increments of six seconds. Why? Well, if you're a business owner, you're probably making lots of phone calls all the time, leaving messages. They're really short phone calls and you don't want to be charged a lot for each one. So, keep that in the back of your head. And remember you can get your phone service and your internet service sometimes bundled into the same plan. It's cheaper that way. Check out billsaver.com.

KAGAN: What's your advice for the little guys out there trying to compete with the big companies?

WILLIS: Well, you have got to find ways to make yourself look big. And one way is to get a really great accounting software program. "P.C." magazine recently reviewed a lot of these. A couple of the ones they recommended, Quick Books and Peach Tree Premium. Now, it will make you look bigger, but you're going to have to pay for it. Check out all the details at pcmagazine.com. And also, think about getting a virtual assistant at assistyou.com. I think we all could use that -- Daryn.

KAGAN: Yes, I could use a virtual one and a real one, and lots of ones. What about other resources that are out there?

WILLIS: Well, there are a couple websites that new business operators should definitely check out sba.gov, is the Small Business Administration. They give you lots of advice. They even give you a training network. And check out score.org., they also council small business.

You know, everyone's going to want to give you advice on your new small business, make sure you go to the best resources -- Daryn.

KAGAN: And we have done just that today.

WILLIS: That's very nice.

KAGAN: Gerri Willis, thank you for that. You have a great weekend.

WILLIS: You, too.

KAGAN: Pressing the hunt for Usama bin Laden, trying to force the al Qaeda leader out of hiding. We'll show you how they plan to find him.

And a little girl left paralyzed after a car accident. Her family is awarded millions by a jury; But Ford says that's wrong. The story coming up on CNN LIVE TODAY.

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KAGAN: Let's take a look at the top stories at this hour.

A last-minute pitch has the delayed this morning's scheduled signing of Iraq's transitional constitution. The nation's Governing Council has assembled for the ceremony a few hours ago, but they are told -- were told actually, that several Shiite members cited concerns and want those concerns resolved before they sign. An official tells CNN, the delay could be substantial, but the historic framework is not in jeopardy.

In Washington State a superior court judge has ruled that two 13- year-old boys will be tried as adults in the death of a playmate. The boys were 12 at the time of the crime. They will face first-degree murder charges. They are accused of beating and stabbing a boy, who was physically and mentally handicapped.

The man accused of kidnapping a missing college student is in a North Dakota courtroom this morning. Convicted sex offender, Alphonso Rodriquez, Junior is the primary suspect in the November disappearance of 22-year-old Dru Sjodin. Today's hearing is to determine whether to proceed to trial against Rodriguez, who maintains his innocence.

Baseball slugger, Barry Bonds has a new voice coming to his defense in the sports steroid scandal. Lawyers representing two men accused in the drug distribution ring, say Bonds never received steroids from the lab at the center of the federal investigation. Bonds has denied using steroids.

And we have the latest coming out of the Martha Stewart trial. We understand that the jury has come back to the judge with yet another question. Let's go to Mary Snow in Lower Manhattan to find out what that is about -- Mary.

SNOW: Hi, Daryn. Well, their question really relates to what happened yesterday. And this is about Peter Bacanovic, the co- defendant in this case. Not a good indication for his team. Basically, it comes down to this. The jury yesterday, sent out a question about the perjury count, Count 6. And particularly about one item, a Specification 1, and this was about whether or not he committed perjury by his testimony regarding a phone message that he gave to Martha Stewart's assistant in -- on December 2001. That's the day that show sold her Imclone stock.

And this count, in order to find someone guilty of this charge, you have to find that two witnesses will corroborate the claim. Basically, what happened was the jurors sent out a note to the judge saying, can the testimony of this one witness, Martha Stewart's assistant, be corroborated by the same person's phone logs that she kept in the course of her business? This sent off a lot of legal research. The judge told Bacanovic's team go and research this. They came back today. They submitted their papers. And the judge said after reading through everything that, yes, that the phone log can be considered a second witness in corroboration of the testimony of that same witness.

So bottom line, this is not a good indication for Peter Bacanovic because on this purjury charge, there are a number of specifications the judge informed the jurors that they only needed to find one of those specifications in order for a conviction.

Bacanovic's team, his lawyer said they looked all night for a case. They disagreed with the judge, took exception, but in the end she ruled this was two witnesses. She said this was not an easy question. And the fact that the jury was even asking it shows they are very careful and intelligent -- Daryn.

KAGAN: All right. We'll see what this is all adding up to when they come out with their verdict. Mary Snow, thank you.

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CIA Testifies before House Intelligence Committee>