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American Morning

Historic Day for Iraq

Aired March 05, 2004 - 08:00   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.


SOLEDAD O'BRIEN, CNN ANCHOR: Less than a year ago, Iraq under Saddam Hussein looked like this. Now, in just a few minutes, the country's new constitution will be signed.
Separated for six years, how the courts will return a little girl to the mother she never knew.

And the boxer.

(BEGIN VIDEO CLIP)

ERNIE LOPEZ, BOXING HALL OF FAME INDUCTEE: Not too many people get that opportunity, I don't believe. But I'm thankful that I got it.

(END VIDEO CLIP)

O'BRIEN: The Hall of Fame athlete who almost disappeared into obscurity until someone who cared found him.

Those stories all ahead on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Soledad O'Brien and Bill Hemmer.

BILL HEMMER, CNN ANCHOR: Good morning.

Welcome to Friday, 8:00 here in New York.

Live to the signing of Iraq's constitution. We'll get you that live in Baghdad in a few moments. They are starting to gather. We will not be far from this story this hour.

Also coming up, Barbara Starr tells us why the U.S. military thinks it might be getting closer to getting Osama bin Laden. A lot of high tech equipment being used in that search right now and Barbara will tell us how that will help. In addition, you still need that human intelligence on the ground, so we'll get to that from the Pentagon.

O'BRIEN: Also this morning, on a much lighter note, the Big Red lawsuit. Did an Italian TV company rip off Western Kentucky University, stealing its big, lovable blob of a mascot? We're going to talk to the school president, meet Big Red, too, a $250 million lawsuit now in the Italian courts.

HEMMER: Wow! And you said they're taking it very seriously in Italy, huh?

O'BRIEN: Absolutely. Yes.

HEMMER: Back to Jack now.

Good morning, Mr. Cafferty.

How are you on a Friday?

JACK CAFFERTY, CNN CORRESPONDENT: That thing's going to be on the show?

O'BRIEN: Yes, he is.

HEMMER: Yes.

CAFFERTY: There's something to look forward to.

HEMMER: A boomy.

CAFFERTY: Coming up on the Cafferty File in about 20 minutes, we're going to find out how a Texas election might get kinky. And it's not what you're thinking, so get your mind out of the gutter.

And when Arnold Schwarzenegger was running for the governor of California, I referred to him on this program as a walking barbell. And some of you took exception to that. Well, wait till you find out what his newest job is. I have been vindicated. It's coming up in the File.

O'BRIEN: Ah, you've waited so long to be able to say that, haven't you?

CAFFERTY: What?

O'BRIEN: I've been vindicated.

CAFFERTY: It doesn't happen often.

O'BRIEN: No, it doesn't.

CAFFERTY: We're going to take note of this in those few times that it does occur.

O'BRIEN: All right, Jack, thanks.

Top stories now.

We begin with campaign politics. Americans appear to be split over President Bush and Democratic front runner John Kerry. According to a new Associated Press poll, the two, the president and Senator Kerry, are statistically tied. President Bush is supported by 46 percent of people surveyed. Senator Kerry has the backing of 45 percent. Independent candidate Ralph Nader was also on the board with six percent of the vote. Some families of the victims of the September 11 terrorist attacks are angry over President Bush's new ad campaign. The reelection ads use pictures of the destruction of the World Trade Center and also images of firefighters working in the debris. Family members say the president should not use the attacks as political propaganda.

The wait continues for Martha Stewart in her obstruction of justice trial as jury deliberations resume in New York today. Jurors yesterday asked to see a transcript of testimony about interviews with Stewart's former stockbroker. They also made several other requests, as well. Stewart is accused of lying about why she sold nearly 4,000 shares of ImClone's stock. She has denied any wrongdoing.

Some students at a Washington, D.C. elementary school are receiving counseling after a teacher showed them some scenes of Mel Gibson's movie, "The Passion of the Christ." School officials say at least 16 students were shown 60 to 90 minutes of the R-rated film. Officials say it was inappropriate for the teacher to show a film with that rating or even one with religious content. Some of the parents claim that their children now have been traumatized and the teacher has been suspended.

In Arizona, flash floods and hail pounded parts of the region. Heavy fain and ice fell from the sky in the Phoenix area yesterday. The rush hour traffic was stop and go as the drivers there tried to navigate through those flooded streets. That looks pretty bad.

HEMMER: Wow, there in Arizona, you've got the deal in Texas. Rob was talking about this yesterday.

(WEATHER REPORT)

HEMMER: This is truly an historic day for Iraq. The country's U.S. appointed Governing Council set to sign an interim constitution. It will happen any moment in Baghdad and our bureau chief Jane Arraf standing by now in the Iraqi capital to bring us more on the significance for this day today -- Jane, good afternoon there.

JANE ARRAF, CNN CORRESPONDENT: Good afternoon, Bill.

You can probably hear behind me the orchestra has started playing. They're waiting for the Governing Council members to arrive. And it is a historic day. After a week in which a terrible tragedy of bombings in the holy cities of Karbala and holy shrines in Baghdad happened, people here are moving forward to sign a constitution which sets out a bill of rights, a bill of rights and it sets up democratic institutions, the way they hope this country will go in the next few years.

One Governing Council member says this today truly is the birthday of a new Iraq -- Bill.

HEMMER: Last hour Adnan Pachachi said, "It's a great day," to quote his words from last hour here. But outside the Iraqi Governing Council, how much are regular Iraqi people aware of what's happening and how much does this mean to them? Have you been able to gauge that?

ARRAF: This has been so overshadowed by the horrible events -- and, in fact, it was delayed for three days while the country was in official mourning over those bombings that killed more than 170 people, Bill. So people are starting to focus on that.

You're absolutely right, this is still an abstract concept. But what the people in this room who are going to sign this document pledge to do is to work to make it real, to make this a country, they say, where anyone, whether they're Shia or Sunni or any other nationality, has their rights respected, where they have religious freedom. It's a very tough balance, but they are pledging in this room to go out and explain to people in the streets what they hope Iraq will be like -- Bill.

HEMMER: Also, statements from that constitution talking about the role of women in the government, civil rights for the future and a host of other things regarding religion, Islam there in Iraq.

So we'll talk about that as we go throughout the morning.

Jane, thanks,

Jane Arraf there in Baghdad.

We will not leave this story for long.

ARRAF: Thank you, Bill.

HEMMER: All right -- Soledad.

O'BRIEN: High technology will soon be brought to bear in the hunt for the al Qaeda leader, Osama bin Laden. U.S. forces will deploy U2 spy planes and Predator drones to take pictures and intercept communications in the border region between Pakistan and Afghanistan.

Barbara Starr is live for us at the Pentagon this morning with more -- hey, Barbara, good morning.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Soledad.

Well, you know, the secret hunt for Osama bin Laden is turning out to be one of the worst kept secrets. Some new details now emerging about how it's all going to happen.

(BEGIN VIDEOTAPE)

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): CNN has learned the new strategy to catch Osama bin Laden includes high-tech surveillance to keep a 24/7 watch over the border region between Afghanistan and Pakistan. Officially, none of this is acknowledged.

GENERAL JOHN ABIZAID, U.S. CENTRAL COMMANDER: Of course, you've read and heard in the press the idea that Osama bin Laden is surrounded and we have him cornered and we know where he is, et cetera, et cetera, and, of course, we don't know that.

STARR: But U.S. officials believe bin Laden may be feeling the heat from Pakistani forces hunting him and could start to move so around the clock surveillance could pay off. As one official told CNN, we are putting the pieces in place to throw the net over him. Everything will be in position within days. Those intelligence gathering sensors include U-2 spy planes flying for hours at 70,000 feet or above, taking pictures, using radars and intercepting communications.

Unmanned predators will take a closer look. Flying at 25,000 feet, its cameras see vehicles and people. Special radars operate through clouds. Some may have held fire missiles. Ground sensors may be set along mountain passes, listening for vehicles. Streams of data will be sent via satellite to analysts for quick action. The military has brought up satellite transmission capacity in the region, making sure it can respond quickly. If Osama bin Laden is spotted moving, waiting U.S. special forces will try to capture or kill him. But Osama bin Laden has slipped away before. Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

STARR: So if Osama bin Laden is spotted by any of these high tech sensors, U.S. special forces will be waiting, trying to capture or kill him. But it's worth remembering, Osama bin Laden has slipped away before -- Soledad.

O'BRIEN: Yes, he has.

Barbara Starr for us at the Pentagon this morning.

Barbara, thanks -- Bill.

HEMMER: Soledad, we've been watching this incredible story of a mother who discovered that her daughter was alive six years after her presumed death in a fire. The mother, Luz Cuevas, and the girl, now six years old, had a brief get together yesterday.

Earlier in the day, a judge had approved a plan granting custody of the child to her mother.

Cuevas says Delimar Vera, her daughter, was kidnapped when she was just 10 days old by a family acquaintance who is accused of setting the fire as a ruse.

Earlier today, I talked with the attorney, Anthony Cianfrani, the attorney for Cuevas, asking him about the reaction of mother and daughter at the initial reunion yesterday.

(BEGIN VIDEOTAPE)

ANTHONY CIANFRANI, ATTORNEY FOR LUZ CUEVAS: My client told me that she called her mommy and was very excited and happy about seeing her and anxious to see her new siblings.

HEMMER: How did Ms. Cuevas react?

CIANFRANI: She was thrilled. She was gushing over.

HEMMER: We are told that there's a bit of a communication barrier. The girl does not speak Spanish, the mother does; speaks a little bit of English.

How were they able to overcome that, if at all?

CIANFRANI: The mother speaks enough English to communicate to the child. The mother can talk about foods and colors and how do you feel and that sort of thing. So the mother can communicate, but she understands that she needs to learn English so she can communicate better with her child.

HEMMER: It is also told us here at CNN Ms. Cuevas says that her daughter, Delimar, was hysterical when she found out the mother who she thought was her mom turned out not to be that way.

What sort of complications do you foresee in this relationship?

CIANFRANI: Well, we are working with psychologists to make the transition go as best as it can. It will be a fast transition. Over the next few days, my client will take custody. We do expect some problems, but the natural mom has a loving home and other children and she's just committed to doing whatever is necessary to make the transition go well.

HEMMER: And the natural father has come forward, also. He is now saying that he wants to be included in this process. He's hired an attorney.

What can he expect in terms of involvement in this little girl's life?

CIANFRANI: He will have access, but fairly limited for the near future. There's been enough turmoil in the child's life. She does not need some sort of split custody situation where she's with the natural mom some time and with the natural father some time. So his role will be limited to visitation for the next few months at least.

HEMMER: There is at least one city council member in Philadelphia calling for an investigation into what came out of the investigation of the fire back in 1997. You've said that you are planning a lawsuit against the city.

What do you plan to file suit against in Philadelphia?

CIANFRANI: It would be a civil rights suit in federal court. The Philadelphia officials are all immune under state law. So the only way to get around those immunities is to pursue a civil rights action. And I think the focus is on just about every department. I mean the police department didn't follow up. The fire department bungled it. And the medical examiner did a poor job, also. So it's hard to imagine a situation where the three responsible agencies didn't do their job, but it seems to have occurred in this situation.

(END VIDEOTAPE)

HEMMER: Anthony Cianfrani earlier today, the attorney for Luz Cuevas, talking earlier today. She says the mother and daughter are meeting again today for a few hours. He says that if all continues to go well, he expects the judge to grant official custody on Monday of next week. We'll follow it for you.

O'BRIEN: Still to come this morning, a political milestone this hour in Iraq as members of Iraq's Governing Council sign an interim constitution. We're going to bring you that ceremony live in just a few minutes.

HEMMER: Also, an aging boxer homeless and thought to be lost, brought home to be inducted into the Hall of Fame. A great story here.

O'BRIEN: And get a load of this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: ... have increased.

UNIDENTIFIED FEMALE: Gentlemen! Gentlemen!

(END VIDEO CLIP)

O'BRIEN: Oh, things got a little out of hand at a condo owners' meeting in Boca. More on that story ahead.

HEMMER: It's those association fees.

O'BRIEN: Wow!

(COMMCERCIAL BREAK)

HEMMER: Hi, welcome back on a Friday.

About 15 minutes away, a critical piece of economic news.

Andy is back for that here.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: That's called previewing it, right?

HEMMER: Yes.

SERWER: We're going to preview the jobs report coming out at 8:30. This is about February's employment rate. It should hold steady at 5.6 percent. That's what economists are looking for. Looking to add 125,000 jobs and you can be sure both the Democrats and the Republicans will be watching this closely. You can see here we've come down in the unemployment rate from a peak of 6.4 percent in June. Last month was disappointing in terms of adding jobs. We only added 112,000 jobs in January. That was a little light. So we're looking to improve upon that a little bit.

O'BRIEN: Earlier in the week you were talking about the Scrushies.

SERWER: Yes.

O'BRIEN: The TV show they're doing. And now you've got, there's actually some good video, huh?

SERWER: We do. We have some tape. Richard Scrushy, the former CEO of Healthsouth, he is in a lot of hot water, facing multiple counts. That company in a lot of trouble, as well. He has a new TV show on WTTO Birmingham, 7:30 in the morning. It's basically an infomercial, Soledad, like Ginzu knives.

O'BRIEN: For what?

SERWER: It's basically for his church. But some interesting stuff here. Let's see if we can go to the tape of Richard Scrushy from Birmingham, Alabama.

(BEGIN VIDEO CLIP)

RICHARD SCRUSHY: People have to understand pancreatic cancer is, it is an automatic death sentence. Nobody lives.

UNIDENTIFIED MALE: This man was...

SCRUSHY: Through the grace of god, through the power of god, this man lived.

UNIDENTIFIED MALE: Yes.

SCRUSHY: In two days, that...

UNIDENTIFIED MALE: Yes.

SCRUSHY: I mean if that doesn't wake you up -- and when you're choosing your path...

UNIDENTIFIED MALE: Which is only a month later, understand?

SCRUSHY: People have to understand, pancreatic cancer...

(END VIDEO CLIP)

SERWER: God, what a religious experience he's talking about, someone having cancer and recovering.

O'BRIEN: And his wife is the co-anchor of the show?

SERWER: That's correct. And he's getting more and more religious by the day, apparently. We talked to someone who'd been on the show and he said it was a great experience. He had no idea it was Richard Scrushy because it's just held out as being a part of the church that he supports. So kind of an interesting situation down there.

O'BRIEN: Oh, interesting.

All right, Andy, thanks a lot.

SERWER: You're welcome.

O'BRIEN: How about this story? Ernie Lopez flew from Dallas to Los Angeles yesterday. He was in the air for about three hours, but it was a trip that truly took him about 30 years to completer.

Reporter Barry Carpenter of CNN affiliate KDAF in Dallas/Fort Worth has his story.

(BEGIN VIDEOTAPE)

BARRY CARPENTER, KDAF CORRESPONDENT (voice-over): It's been a long road for 58-year-old former welterweight contender Ernie "Indian Red" Lopez. He arrived at Dallas/Fort Worth with a one way ticket to Los Angeles and a newspaper with him on the front page.

LOPEZ: I didn't think I'd ever be on the front page here of the "Star Telegram," you know?

CARPENTER: But Lopez was no stranger to the sports page of boxing magazines. That's him in his Indian Red warm-up and here in a 1970 title fight lost to Jose Napoles. He and his wife divorced in 1972, then in 1973, he lost another title fight to Napoles.

(on camera): Those losses were apparently so devastating that Lopez simply disappeared, wondering the country for years, ultimately winding up here, at a Fort Worth homeless shelter.

(voice-over): Lopez would sometimes contact family members, but for the past 10 years, he vanished. But family members in Los Angeles found out that Lopez had been inducted into the California Boxing Hall of Fame. L.A. police tracked him to this shelter and this bed. Now he and his tattered duffle bag are off to L.A.

LOPEZ: You know, got a hold of me and said they were going to put me in the Boxing Hall of Fame down in California. You know, I've got a pretty good record, so.

CARPENTER: Fifty-one, 10 and one, to be exact. But his biggest win may be seeing his family again -- former wife, four kids and 23 grandchildren who won't let him disappear again.

LOPEZ: That's what they told me, they said you'd better start keeping in touch with us.

CARPENTER: The Presbyterian Night Shelter has been his home for months. Friends there say the once fierce fighter is incredibly humble.

DENNIS PENNINGTON, PRESBYTERIAN NIGHT SHELTER: We didn't even know he boxed. He didn't go around talking about it. He's just humble. He's a genuinely nice guy.

CARPENTER: Lopez may have never been a world boxing champion, but he's earned the title of L.A.'s most wanted dad.

LOPEZ: Very, oh, oh, that's going to be nice. That will be good. Not too many people get that opportunity, I don't believe. But I'm thankful that I got it.

CARPENTER: In Dallas, Barry Carpenter for CNN.

(END VIDEOTAPE)

O'BRIEN: That's a nice shot, a little family reunion there.

HEMMER: Indeed it is, yes.

O'BRIEN: That's sweet.

HEMMER: In a moment here, why a college mascot is suing the prime minister of Italy. Big Red, we'll talk about it after this.

(COMMCERCIAL BREAK)

HEMMER: We'll get you live to Baghdad. We are awaiting this ceremony to begin. It should be signed in by the Iraqi Governing Council, an interim constitution set out to clear the way for the first small steps toward democracy in Iraq. All this versus the backdrop, juxtapositioned with the violence still on the streets.

We are only two days removed from the tragedy of Wednesday. More than 180 killed, more than 500 wounded in the day of bombings in Karbala, in Baghdad. Nonetheless, we are told by our reporters on the ground, this is a country that refuses to go backward and will go forward. And this is the evidence today and we'll get you back there live in a moment.

Also, later this morning, families of some of the victims of 9/11, firefighters, will protest the Bush campaign's use of certain images in new political TV ads. There's no sign the ads are going to come off the air or to be changed. That's the word from Washington we get, despite the pleas from some family members.

More on the controversy now.

Suzanne Malveaux is at the White House with more -- Suzanne, good morning there.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Good morning, Bill.

Well, Bush aides are telling us that, of course, the president is sensitive to the concerns of the victims and the family members, and, of course -- but, however, they say that he is not apologetic for these ads, that this really was a defining moment not only for all Americans, but for the president himself, as well.

They make the case here that it shows, as their campaign slogan says, steady leadership in times of change, that like many other Americans, this president felt it personally, but he was also tested when it came to his leadership.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: On September the 14th, 2001, I stood in the ruins of the Twin Towers. I'll never forget that day. I remember the workers and the hard hats who were shouting, "Whatever it takes." I remember the guy who pointed his finger me, he said, "Don't let me down." As we all did that day, these men and women searching through the rubble took it personally. I took it personally.

(END VIDEO CLIP)

MALVEAUX: Now, Bush aides say that President Bush not only took this personally, but, of course, it really was the impetus for his preemptive policy. Also, it was the first front when it came to the war on terror and also I should let you know, Bill, that they're using this, the September 11 attacks, to point out that it's, in part, one of the reasons why we have this sluggish economy. They say that the economy was in a recession, that it was on the up swing, that this really basically decreased consumer confidence, required that there was more expenditures when it came to the war on terror, as well as homeland security, that, in part, contributed to this record breaking deficit.

So they use both cases to say this is a legitimate argument and it's a legitimate use of the September 11 tragedy -- Bill.

O'BRIEN: Suzanne, thanks for that.

Much more on that at the top of the 9:00 a.m. hour. We'll talk with two widows, both husbands killed in the attacks of 9/11, their thoughts on this political ad campaign.

Back to Baghdad, quickly. We will not leave this image for long. This is the news of the hour, with the Iraqi Governing Council approving and ratifying that interim constitution. Much more on that as we continue throughout the morning here.

O'BRIEN: Before we go back there, though, let's go to the Cafferty File.

Mr. Cafferty, good morning again.

CAFFERTY: How are you doing?

Come November, things could get a little kinky in Texas at election time. Country music singer Kinky Friedman is running for governor of the State of Texas as an independent in 2006. Friedman is the author of such great books as "Kill Two Birds and Get Stoned." He fronts a great band called Kinky Friedman and the Texas Jew Boys. He says he wants to fight the "wussification of Texas." He says he'll run an unconventional campaign -- no kidding, Kinky. He wants to kiss not babies, but their mothers instead.

Personalities like -- I've got to love Kinky -- Willie Nelson, Dwight Yoakam, Robert Duvall, Johnny Depp already have pledged their support. And if I lived in Texas, I'd vote for him, too.

All right, back to Arnold Schwarzenegger. When he was running for governor of California, one morning on the program I referred to him as a walking barbell, which seemed to me at the time, and still does, a fairly apt description of a guy who got his start lifting stuff in a gym.

Well, now, he's the new executive editor of "Muscle and Fitness" and "Flex" magazines. So don't send me any more nasty notes about calling him a walking barbell. Both publications owned by American Media Publishers. They own the "National Enquirer" and the "Star." He's written a column for "Muscle and Fitness" for 10 years, says he'll have no additional duties, but they're going to donate his salary to charity.

Things got out of control last night at a condominium owners meeting in Boca Raton. These are a bunch of rich old people discussing country club memberships. And the fists began to fly. Well, maybe fly is too strong a word. Fists began to move slowly across the room.

HEMMER: Patter.

CAFFERTY: For the last 27 years, the condo owners didn't have to be members of the country club. Now the club wants to force future condo owners to buy into it. Nobody got hurt because nobody down there is strong enough to throw a punch that means anything anymore because they're all old.

HEMMER: They need the barbell.

O'BRIEN: Wow, that was pretty shocking to see, a little old guy trying to clock his friend.

CAFFERTY: Things to look forward to when you retire.

HEMMER: That's right. And we're just, we're an hour closer to your root canal today.

CAFFERTY: That's true.

HEMMER: Yippee yahey.

CAFFERTY: I have a dentist's appointment after we tape "In The Money." I'm not sure which is going to be the most fun, this, "In The Money" or getting a tooth pulled at two.

HEMMER: Thank you, Jack.

CAFFERTY: I'm still thinking about it. O'BRIEN: Still to come this morning, schools in the Lone Star State are on the offensive against childhood obesity. We've got details on what will be the strictest school lunch program in the nation. That's ahead as AMERICAN MORNING continues.

(COMMCERCIAL BREAK)

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Aired March 5, 2004 - 08:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Less than a year ago, Iraq under Saddam Hussein looked like this. Now, in just a few minutes, the country's new constitution will be signed.
Separated for six years, how the courts will return a little girl to the mother she never knew.

And the boxer.

(BEGIN VIDEO CLIP)

ERNIE LOPEZ, BOXING HALL OF FAME INDUCTEE: Not too many people get that opportunity, I don't believe. But I'm thankful that I got it.

(END VIDEO CLIP)

O'BRIEN: The Hall of Fame athlete who almost disappeared into obscurity until someone who cared found him.

Those stories all ahead on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Soledad O'Brien and Bill Hemmer.

BILL HEMMER, CNN ANCHOR: Good morning.

Welcome to Friday, 8:00 here in New York.

Live to the signing of Iraq's constitution. We'll get you that live in Baghdad in a few moments. They are starting to gather. We will not be far from this story this hour.

Also coming up, Barbara Starr tells us why the U.S. military thinks it might be getting closer to getting Osama bin Laden. A lot of high tech equipment being used in that search right now and Barbara will tell us how that will help. In addition, you still need that human intelligence on the ground, so we'll get to that from the Pentagon.

O'BRIEN: Also this morning, on a much lighter note, the Big Red lawsuit. Did an Italian TV company rip off Western Kentucky University, stealing its big, lovable blob of a mascot? We're going to talk to the school president, meet Big Red, too, a $250 million lawsuit now in the Italian courts.

HEMMER: Wow! And you said they're taking it very seriously in Italy, huh?

O'BRIEN: Absolutely. Yes.

HEMMER: Back to Jack now.

Good morning, Mr. Cafferty.

How are you on a Friday?

JACK CAFFERTY, CNN CORRESPONDENT: That thing's going to be on the show?

O'BRIEN: Yes, he is.

HEMMER: Yes.

CAFFERTY: There's something to look forward to.

HEMMER: A boomy.

CAFFERTY: Coming up on the Cafferty File in about 20 minutes, we're going to find out how a Texas election might get kinky. And it's not what you're thinking, so get your mind out of the gutter.

And when Arnold Schwarzenegger was running for the governor of California, I referred to him on this program as a walking barbell. And some of you took exception to that. Well, wait till you find out what his newest job is. I have been vindicated. It's coming up in the File.

O'BRIEN: Ah, you've waited so long to be able to say that, haven't you?

CAFFERTY: What?

O'BRIEN: I've been vindicated.

CAFFERTY: It doesn't happen often.

O'BRIEN: No, it doesn't.

CAFFERTY: We're going to take note of this in those few times that it does occur.

O'BRIEN: All right, Jack, thanks.

Top stories now.

We begin with campaign politics. Americans appear to be split over President Bush and Democratic front runner John Kerry. According to a new Associated Press poll, the two, the president and Senator Kerry, are statistically tied. President Bush is supported by 46 percent of people surveyed. Senator Kerry has the backing of 45 percent. Independent candidate Ralph Nader was also on the board with six percent of the vote. Some families of the victims of the September 11 terrorist attacks are angry over President Bush's new ad campaign. The reelection ads use pictures of the destruction of the World Trade Center and also images of firefighters working in the debris. Family members say the president should not use the attacks as political propaganda.

The wait continues for Martha Stewart in her obstruction of justice trial as jury deliberations resume in New York today. Jurors yesterday asked to see a transcript of testimony about interviews with Stewart's former stockbroker. They also made several other requests, as well. Stewart is accused of lying about why she sold nearly 4,000 shares of ImClone's stock. She has denied any wrongdoing.

Some students at a Washington, D.C. elementary school are receiving counseling after a teacher showed them some scenes of Mel Gibson's movie, "The Passion of the Christ." School officials say at least 16 students were shown 60 to 90 minutes of the R-rated film. Officials say it was inappropriate for the teacher to show a film with that rating or even one with religious content. Some of the parents claim that their children now have been traumatized and the teacher has been suspended.

In Arizona, flash floods and hail pounded parts of the region. Heavy fain and ice fell from the sky in the Phoenix area yesterday. The rush hour traffic was stop and go as the drivers there tried to navigate through those flooded streets. That looks pretty bad.

HEMMER: Wow, there in Arizona, you've got the deal in Texas. Rob was talking about this yesterday.

(WEATHER REPORT)

HEMMER: This is truly an historic day for Iraq. The country's U.S. appointed Governing Council set to sign an interim constitution. It will happen any moment in Baghdad and our bureau chief Jane Arraf standing by now in the Iraqi capital to bring us more on the significance for this day today -- Jane, good afternoon there.

JANE ARRAF, CNN CORRESPONDENT: Good afternoon, Bill.

You can probably hear behind me the orchestra has started playing. They're waiting for the Governing Council members to arrive. And it is a historic day. After a week in which a terrible tragedy of bombings in the holy cities of Karbala and holy shrines in Baghdad happened, people here are moving forward to sign a constitution which sets out a bill of rights, a bill of rights and it sets up democratic institutions, the way they hope this country will go in the next few years.

One Governing Council member says this today truly is the birthday of a new Iraq -- Bill.

HEMMER: Last hour Adnan Pachachi said, "It's a great day," to quote his words from last hour here. But outside the Iraqi Governing Council, how much are regular Iraqi people aware of what's happening and how much does this mean to them? Have you been able to gauge that?

ARRAF: This has been so overshadowed by the horrible events -- and, in fact, it was delayed for three days while the country was in official mourning over those bombings that killed more than 170 people, Bill. So people are starting to focus on that.

You're absolutely right, this is still an abstract concept. But what the people in this room who are going to sign this document pledge to do is to work to make it real, to make this a country, they say, where anyone, whether they're Shia or Sunni or any other nationality, has their rights respected, where they have religious freedom. It's a very tough balance, but they are pledging in this room to go out and explain to people in the streets what they hope Iraq will be like -- Bill.

HEMMER: Also, statements from that constitution talking about the role of women in the government, civil rights for the future and a host of other things regarding religion, Islam there in Iraq.

So we'll talk about that as we go throughout the morning.

Jane, thanks,

Jane Arraf there in Baghdad.

We will not leave this story for long.

ARRAF: Thank you, Bill.

HEMMER: All right -- Soledad.

O'BRIEN: High technology will soon be brought to bear in the hunt for the al Qaeda leader, Osama bin Laden. U.S. forces will deploy U2 spy planes and Predator drones to take pictures and intercept communications in the border region between Pakistan and Afghanistan.

Barbara Starr is live for us at the Pentagon this morning with more -- hey, Barbara, good morning.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Soledad.

Well, you know, the secret hunt for Osama bin Laden is turning out to be one of the worst kept secrets. Some new details now emerging about how it's all going to happen.

(BEGIN VIDEOTAPE)

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): CNN has learned the new strategy to catch Osama bin Laden includes high-tech surveillance to keep a 24/7 watch over the border region between Afghanistan and Pakistan. Officially, none of this is acknowledged.

GENERAL JOHN ABIZAID, U.S. CENTRAL COMMANDER: Of course, you've read and heard in the press the idea that Osama bin Laden is surrounded and we have him cornered and we know where he is, et cetera, et cetera, and, of course, we don't know that.

STARR: But U.S. officials believe bin Laden may be feeling the heat from Pakistani forces hunting him and could start to move so around the clock surveillance could pay off. As one official told CNN, we are putting the pieces in place to throw the net over him. Everything will be in position within days. Those intelligence gathering sensors include U-2 spy planes flying for hours at 70,000 feet or above, taking pictures, using radars and intercepting communications.

Unmanned predators will take a closer look. Flying at 25,000 feet, its cameras see vehicles and people. Special radars operate through clouds. Some may have held fire missiles. Ground sensors may be set along mountain passes, listening for vehicles. Streams of data will be sent via satellite to analysts for quick action. The military has brought up satellite transmission capacity in the region, making sure it can respond quickly. If Osama bin Laden is spotted moving, waiting U.S. special forces will try to capture or kill him. But Osama bin Laden has slipped away before. Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

STARR: So if Osama bin Laden is spotted by any of these high tech sensors, U.S. special forces will be waiting, trying to capture or kill him. But it's worth remembering, Osama bin Laden has slipped away before -- Soledad.

O'BRIEN: Yes, he has.

Barbara Starr for us at the Pentagon this morning.

Barbara, thanks -- Bill.

HEMMER: Soledad, we've been watching this incredible story of a mother who discovered that her daughter was alive six years after her presumed death in a fire. The mother, Luz Cuevas, and the girl, now six years old, had a brief get together yesterday.

Earlier in the day, a judge had approved a plan granting custody of the child to her mother.

Cuevas says Delimar Vera, her daughter, was kidnapped when she was just 10 days old by a family acquaintance who is accused of setting the fire as a ruse.

Earlier today, I talked with the attorney, Anthony Cianfrani, the attorney for Cuevas, asking him about the reaction of mother and daughter at the initial reunion yesterday.

(BEGIN VIDEOTAPE)

ANTHONY CIANFRANI, ATTORNEY FOR LUZ CUEVAS: My client told me that she called her mommy and was very excited and happy about seeing her and anxious to see her new siblings.

HEMMER: How did Ms. Cuevas react?

CIANFRANI: She was thrilled. She was gushing over.

HEMMER: We are told that there's a bit of a communication barrier. The girl does not speak Spanish, the mother does; speaks a little bit of English.

How were they able to overcome that, if at all?

CIANFRANI: The mother speaks enough English to communicate to the child. The mother can talk about foods and colors and how do you feel and that sort of thing. So the mother can communicate, but she understands that she needs to learn English so she can communicate better with her child.

HEMMER: It is also told us here at CNN Ms. Cuevas says that her daughter, Delimar, was hysterical when she found out the mother who she thought was her mom turned out not to be that way.

What sort of complications do you foresee in this relationship?

CIANFRANI: Well, we are working with psychologists to make the transition go as best as it can. It will be a fast transition. Over the next few days, my client will take custody. We do expect some problems, but the natural mom has a loving home and other children and she's just committed to doing whatever is necessary to make the transition go well.

HEMMER: And the natural father has come forward, also. He is now saying that he wants to be included in this process. He's hired an attorney.

What can he expect in terms of involvement in this little girl's life?

CIANFRANI: He will have access, but fairly limited for the near future. There's been enough turmoil in the child's life. She does not need some sort of split custody situation where she's with the natural mom some time and with the natural father some time. So his role will be limited to visitation for the next few months at least.

HEMMER: There is at least one city council member in Philadelphia calling for an investigation into what came out of the investigation of the fire back in 1997. You've said that you are planning a lawsuit against the city.

What do you plan to file suit against in Philadelphia?

CIANFRANI: It would be a civil rights suit in federal court. The Philadelphia officials are all immune under state law. So the only way to get around those immunities is to pursue a civil rights action. And I think the focus is on just about every department. I mean the police department didn't follow up. The fire department bungled it. And the medical examiner did a poor job, also. So it's hard to imagine a situation where the three responsible agencies didn't do their job, but it seems to have occurred in this situation.

(END VIDEOTAPE)

HEMMER: Anthony Cianfrani earlier today, the attorney for Luz Cuevas, talking earlier today. She says the mother and daughter are meeting again today for a few hours. He says that if all continues to go well, he expects the judge to grant official custody on Monday of next week. We'll follow it for you.

O'BRIEN: Still to come this morning, a political milestone this hour in Iraq as members of Iraq's Governing Council sign an interim constitution. We're going to bring you that ceremony live in just a few minutes.

HEMMER: Also, an aging boxer homeless and thought to be lost, brought home to be inducted into the Hall of Fame. A great story here.

O'BRIEN: And get a load of this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: ... have increased.

UNIDENTIFIED FEMALE: Gentlemen! Gentlemen!

(END VIDEO CLIP)

O'BRIEN: Oh, things got a little out of hand at a condo owners' meeting in Boca. More on that story ahead.

HEMMER: It's those association fees.

O'BRIEN: Wow!

(COMMCERCIAL BREAK)

HEMMER: Hi, welcome back on a Friday.

About 15 minutes away, a critical piece of economic news.

Andy is back for that here.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: That's called previewing it, right?

HEMMER: Yes.

SERWER: We're going to preview the jobs report coming out at 8:30. This is about February's employment rate. It should hold steady at 5.6 percent. That's what economists are looking for. Looking to add 125,000 jobs and you can be sure both the Democrats and the Republicans will be watching this closely. You can see here we've come down in the unemployment rate from a peak of 6.4 percent in June. Last month was disappointing in terms of adding jobs. We only added 112,000 jobs in January. That was a little light. So we're looking to improve upon that a little bit.

O'BRIEN: Earlier in the week you were talking about the Scrushies.

SERWER: Yes.

O'BRIEN: The TV show they're doing. And now you've got, there's actually some good video, huh?

SERWER: We do. We have some tape. Richard Scrushy, the former CEO of Healthsouth, he is in a lot of hot water, facing multiple counts. That company in a lot of trouble, as well. He has a new TV show on WTTO Birmingham, 7:30 in the morning. It's basically an infomercial, Soledad, like Ginzu knives.

O'BRIEN: For what?

SERWER: It's basically for his church. But some interesting stuff here. Let's see if we can go to the tape of Richard Scrushy from Birmingham, Alabama.

(BEGIN VIDEO CLIP)

RICHARD SCRUSHY: People have to understand pancreatic cancer is, it is an automatic death sentence. Nobody lives.

UNIDENTIFIED MALE: This man was...

SCRUSHY: Through the grace of god, through the power of god, this man lived.

UNIDENTIFIED MALE: Yes.

SCRUSHY: In two days, that...

UNIDENTIFIED MALE: Yes.

SCRUSHY: I mean if that doesn't wake you up -- and when you're choosing your path...

UNIDENTIFIED MALE: Which is only a month later, understand?

SCRUSHY: People have to understand, pancreatic cancer...

(END VIDEO CLIP)

SERWER: God, what a religious experience he's talking about, someone having cancer and recovering.

O'BRIEN: And his wife is the co-anchor of the show?

SERWER: That's correct. And he's getting more and more religious by the day, apparently. We talked to someone who'd been on the show and he said it was a great experience. He had no idea it was Richard Scrushy because it's just held out as being a part of the church that he supports. So kind of an interesting situation down there.

O'BRIEN: Oh, interesting.

All right, Andy, thanks a lot.

SERWER: You're welcome.

O'BRIEN: How about this story? Ernie Lopez flew from Dallas to Los Angeles yesterday. He was in the air for about three hours, but it was a trip that truly took him about 30 years to completer.

Reporter Barry Carpenter of CNN affiliate KDAF in Dallas/Fort Worth has his story.

(BEGIN VIDEOTAPE)

BARRY CARPENTER, KDAF CORRESPONDENT (voice-over): It's been a long road for 58-year-old former welterweight contender Ernie "Indian Red" Lopez. He arrived at Dallas/Fort Worth with a one way ticket to Los Angeles and a newspaper with him on the front page.

LOPEZ: I didn't think I'd ever be on the front page here of the "Star Telegram," you know?

CARPENTER: But Lopez was no stranger to the sports page of boxing magazines. That's him in his Indian Red warm-up and here in a 1970 title fight lost to Jose Napoles. He and his wife divorced in 1972, then in 1973, he lost another title fight to Napoles.

(on camera): Those losses were apparently so devastating that Lopez simply disappeared, wondering the country for years, ultimately winding up here, at a Fort Worth homeless shelter.

(voice-over): Lopez would sometimes contact family members, but for the past 10 years, he vanished. But family members in Los Angeles found out that Lopez had been inducted into the California Boxing Hall of Fame. L.A. police tracked him to this shelter and this bed. Now he and his tattered duffle bag are off to L.A.

LOPEZ: You know, got a hold of me and said they were going to put me in the Boxing Hall of Fame down in California. You know, I've got a pretty good record, so.

CARPENTER: Fifty-one, 10 and one, to be exact. But his biggest win may be seeing his family again -- former wife, four kids and 23 grandchildren who won't let him disappear again.

LOPEZ: That's what they told me, they said you'd better start keeping in touch with us.

CARPENTER: The Presbyterian Night Shelter has been his home for months. Friends there say the once fierce fighter is incredibly humble.

DENNIS PENNINGTON, PRESBYTERIAN NIGHT SHELTER: We didn't even know he boxed. He didn't go around talking about it. He's just humble. He's a genuinely nice guy.

CARPENTER: Lopez may have never been a world boxing champion, but he's earned the title of L.A.'s most wanted dad.

LOPEZ: Very, oh, oh, that's going to be nice. That will be good. Not too many people get that opportunity, I don't believe. But I'm thankful that I got it.

CARPENTER: In Dallas, Barry Carpenter for CNN.

(END VIDEOTAPE)

O'BRIEN: That's a nice shot, a little family reunion there.

HEMMER: Indeed it is, yes.

O'BRIEN: That's sweet.

HEMMER: In a moment here, why a college mascot is suing the prime minister of Italy. Big Red, we'll talk about it after this.

(COMMCERCIAL BREAK)

HEMMER: We'll get you live to Baghdad. We are awaiting this ceremony to begin. It should be signed in by the Iraqi Governing Council, an interim constitution set out to clear the way for the first small steps toward democracy in Iraq. All this versus the backdrop, juxtapositioned with the violence still on the streets.

We are only two days removed from the tragedy of Wednesday. More than 180 killed, more than 500 wounded in the day of bombings in Karbala, in Baghdad. Nonetheless, we are told by our reporters on the ground, this is a country that refuses to go backward and will go forward. And this is the evidence today and we'll get you back there live in a moment.

Also, later this morning, families of some of the victims of 9/11, firefighters, will protest the Bush campaign's use of certain images in new political TV ads. There's no sign the ads are going to come off the air or to be changed. That's the word from Washington we get, despite the pleas from some family members.

More on the controversy now.

Suzanne Malveaux is at the White House with more -- Suzanne, good morning there.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Good morning, Bill.

Well, Bush aides are telling us that, of course, the president is sensitive to the concerns of the victims and the family members, and, of course -- but, however, they say that he is not apologetic for these ads, that this really was a defining moment not only for all Americans, but for the president himself, as well.

They make the case here that it shows, as their campaign slogan says, steady leadership in times of change, that like many other Americans, this president felt it personally, but he was also tested when it came to his leadership.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: On September the 14th, 2001, I stood in the ruins of the Twin Towers. I'll never forget that day. I remember the workers and the hard hats who were shouting, "Whatever it takes." I remember the guy who pointed his finger me, he said, "Don't let me down." As we all did that day, these men and women searching through the rubble took it personally. I took it personally.

(END VIDEO CLIP)

MALVEAUX: Now, Bush aides say that President Bush not only took this personally, but, of course, it really was the impetus for his preemptive policy. Also, it was the first front when it came to the war on terror and also I should let you know, Bill, that they're using this, the September 11 attacks, to point out that it's, in part, one of the reasons why we have this sluggish economy. They say that the economy was in a recession, that it was on the up swing, that this really basically decreased consumer confidence, required that there was more expenditures when it came to the war on terror, as well as homeland security, that, in part, contributed to this record breaking deficit.

So they use both cases to say this is a legitimate argument and it's a legitimate use of the September 11 tragedy -- Bill.

O'BRIEN: Suzanne, thanks for that.

Much more on that at the top of the 9:00 a.m. hour. We'll talk with two widows, both husbands killed in the attacks of 9/11, their thoughts on this political ad campaign.

Back to Baghdad, quickly. We will not leave this image for long. This is the news of the hour, with the Iraqi Governing Council approving and ratifying that interim constitution. Much more on that as we continue throughout the morning here.

O'BRIEN: Before we go back there, though, let's go to the Cafferty File.

Mr. Cafferty, good morning again.

CAFFERTY: How are you doing?

Come November, things could get a little kinky in Texas at election time. Country music singer Kinky Friedman is running for governor of the State of Texas as an independent in 2006. Friedman is the author of such great books as "Kill Two Birds and Get Stoned." He fronts a great band called Kinky Friedman and the Texas Jew Boys. He says he wants to fight the "wussification of Texas." He says he'll run an unconventional campaign -- no kidding, Kinky. He wants to kiss not babies, but their mothers instead.

Personalities like -- I've got to love Kinky -- Willie Nelson, Dwight Yoakam, Robert Duvall, Johnny Depp already have pledged their support. And if I lived in Texas, I'd vote for him, too.

All right, back to Arnold Schwarzenegger. When he was running for governor of California, one morning on the program I referred to him as a walking barbell, which seemed to me at the time, and still does, a fairly apt description of a guy who got his start lifting stuff in a gym.

Well, now, he's the new executive editor of "Muscle and Fitness" and "Flex" magazines. So don't send me any more nasty notes about calling him a walking barbell. Both publications owned by American Media Publishers. They own the "National Enquirer" and the "Star." He's written a column for "Muscle and Fitness" for 10 years, says he'll have no additional duties, but they're going to donate his salary to charity.

Things got out of control last night at a condominium owners meeting in Boca Raton. These are a bunch of rich old people discussing country club memberships. And the fists began to fly. Well, maybe fly is too strong a word. Fists began to move slowly across the room.

HEMMER: Patter.

CAFFERTY: For the last 27 years, the condo owners didn't have to be members of the country club. Now the club wants to force future condo owners to buy into it. Nobody got hurt because nobody down there is strong enough to throw a punch that means anything anymore because they're all old.

HEMMER: They need the barbell.

O'BRIEN: Wow, that was pretty shocking to see, a little old guy trying to clock his friend.

CAFFERTY: Things to look forward to when you retire.

HEMMER: That's right. And we're just, we're an hour closer to your root canal today.

CAFFERTY: That's true.

HEMMER: Yippee yahey.

CAFFERTY: I have a dentist's appointment after we tape "In The Money." I'm not sure which is going to be the most fun, this, "In The Money" or getting a tooth pulled at two.

HEMMER: Thank you, Jack.

CAFFERTY: I'm still thinking about it. O'BRIEN: Still to come this morning, schools in the Lone Star State are on the offensive against childhood obesity. We've got details on what will be the strictest school lunch program in the nation. That's ahead as AMERICAN MORNING continues.

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