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CNN Live At Daybreak

Iraq Now Has Interim Constitution; California's Celebrity Governor Says He Has Another Job

Aired March 08, 2004 - 06:00 ET

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

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

CAROL COSTELLO, CNN ANCHOR: And good morning to you.
It is Monday, March 8.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Thanks for waking up with us.

Let me bring you up to date. It's been a busy morning.

It is official. Just moments ago the Iraqi interim constitution was signed. Despite disagreements inside and violence outside, the Iraqi Governing Council has approved the country's new interim charter.

A Human Rights Watch report out today is highly critical of U.S. forces in Afghanistan. The report cites needless civilian casualties, illegal arrests and the alleged torture of prisoners.

The search resumes this morning for a man, a woman and a 6-year- old boy missing and presumed dead in the capsizing of a tour boat in the Baltimore Harbor. Actually, it was a water taxi.

Martha Stewart reports to her probation officer today. She'll be told about restrictions on her life before she is sentenced on June 17.

And Bishop Gene Robinson officially takes control of the Episcopal Church in New Hampshire. The openly gay bishop says he'll keep reaching out to those troubled by his homosexuality.

We update the top stories every 15 minutes. The next update comes your way at 6:15 Eastern.

Pen to paper but not before a barrage of bombs. Iraq now has an interim constitution, but there are those who seem intent on spoiling this day.

Our Baghdad bureau chief Jane Arraf is watching as history is being made in Iraq.

She brings us more on this story.

Let's start with the happy news -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Carol, the happy news was that these 25 members of the Governing Council showed up. They came, they made speeches talking about what a historic day this was. And each one of them signed that document. They now have a constitution. And that included the five Shia members of the Council, who had revolted two days ago, who had gone to consult with the chief Shia cleric and came back and put pen to paper and agreed to a document that sets out a bill of rights for all Iraqis, democratic institutions, calls for full elections and essentially is the way forward, according to these people -- despite the bombs, through the bombs, through the explosions, for the way Iraq is meant to be -- Carol.

COSTELLO: It's exciting, you get to be right in the convention center there in Baghdad, where this is taking place. American officials were also in the audience.

Can you tell us a bit more about that?

ARRAF: They certainly were. L. Paul Bremer, the chief civilian administrator here, played a key role trying to bring these people together. And when we showed up at this convention center -- this was built by Saddam Hussein for the non-aligned summit and put now to a very different use. When we showed up two days ago, expecting this document to be signed, it went on for hour and hour and hour, as it became quite clear there were many disagreements. And we were told then that the U.S. really wanted the Iraqis to work themselves -- to work this out themselves, that they wanted to be able to air their grievances, to talk about it, even if it was last minute -- and come to their own agreements.

Now, they did have some help -- and, we have to understand, some pressure from the United States and Britain. It would have been a disaster had they not showed up today. But they did. They each signed it. And I'm sure this will be just the start of many debates about what exactly this constitution means and how it will be implemented.

But at least here today, at this moment, in this building, they put their names on a piece of paper that is meant to govern Iraq for years to come -- Carol.

COSTELLO: All 25 members of the Iraqi Governing Council signing that interim constitution. But the day, well, the day included violence, as well.

Can you tell us where it happened in Iraq -- Jane.

ARRAF: That was not too far from here, another rocket attack near a police station. And police, we have to remember, are a frequent target of attacks these days. There were three civilians injured and reports of three policemen injured, as well, Carol.

And last night, of course, rocket attacks just across from here, very close to here, across the street at the Rashid Hotel, where coalition officials had been staying before a previous rocket attack there. But it's an indication that this violence is not going to end. No one expects those bombs to stop with the sighing of this constitution. They say that their will is stronger than the bombs -- Carol.

COSTELLO: Jane Arraf reporting live from the Baghdad convention center.

Let's talk about what's happening this morning in Baltimore. Rescue workers are just about to begin searching again, searching the chilly waters of the Inner Harbor, looking for three missing people. Those people -- a man, a woman and a 6-year-old boy -- now presumed dead after a water taxi capsized over the weekend. Twenty-two people were rescued, but one of them, a 60-year-old woman, later died.

As for how it happened, authorities blame a freak storm.

(BEGIN VIDEO CLIP)

CHIEF WILLIAM GOODWIN, BALTIMORE FIRE DEPARTMENT: It was a fast moving, as I called it this morning, anomaly. It started out and in five minutes was gone, traveling at 50 miles per hour, accompanying thunderstorms and high winds with it.

(END VIDEO CLIP)

COSTELLO: You can find out more about the water taxi investigation later this morning on CNN. NTSB Chairman Ellen Engleman Connors will be a guest in the eight o'clock Eastern hour of AMERICAN MORNING.

News across America now. A man and a 4-year-old girl are dead, a woman is missing, after heavy rains caused flash floods in Kentucky. It's believed all three victims were swept into flood waters as rains pounded eastern and central parts of that state. The girl was in a pickup truck that plunged into a swollen creek.

At UCLA, a second arrest in what the "Los Angeles Times" says is a stolen body parts investigation. The latest man arrested, not a university employee, is charged with receiving stolen property. On Saturday, the director of UCLA's donated cadaver program was arrested and charged with grand theft.

For more than 30 Boy Scouts in Utah, a field trip to learn winter survival techniques got a little too real. While the Scouts were asleep in snow caves, an avalanche buried the cave entrances under six feet of snow. But Scout leaders called for help and rescue workers dug the boys out. All are safe this morning.

Can you imagine that?

CHAD MYERS, CNN CORRESPONDENT: Wow!

COSTELLO: They were there to learn about survival techniques, in the case of an avalanche, and one happens.

MYERS: Well, they put their learning and their training to a test. And it worked out for them.

COSTELLO: Thank goodness. MYERS: You know what, Carol? I was listening to Jane Arraf's story and even David Clinch, and I was wondering, can the Iraqis even see this? I mean do they have television? Is the television working?

COSTELLO: Yes.

MYERS: Do they have power to see it?

COSTELLO: Well, some of them do.

MYERS: Yes, I mean...

COSTELLO: But a lot of them have TV sets and they can watch it.

MYERS: Well, that's good.

COSTELLO: A lot of people are in the audience, as well.

MYERS: Yes?

COSTELLO: So it's an exciting time in Baghdad this morning.

MYERS: It sure is. It'd be a shame if the country of Iraq couldn't watch the signing of that constitution, you know? Because I know Americans, even if we had one TV for 35 people, there would be 35 people watching one TV all around the country, right? It's just been a, quite an exciting moment.

COSTELLO: Exactly. Well, we were wondering, you know, all 25 members of the Iraqi Governing Council were signing it.

MYERS: Yes?

COSTELLO: But then you think to our own constitution, pretty much everybody signed it there, too.

MYERS: I know.

COSTELLO: Interesting.

MYERS: Yes, it is. It's a good time for them, an exciting time for Iraq.

(WEATHER REPORT)

COSTELLO: In California, the governor is flexing his multi- tasking muscles. Arnold Schwarzenegger, who is already facing a huge money crisis and trying to navigate through a gay marriage mine field, now he's an editor.

Details from CNN's Miguel Marquez.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): California's celebrity governor says he has another job. GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: I am announcing here today that I will be, from now on, the executive editor of "Muscle & Fitness" and "Flex" magazine. Is that a good move or what, huh?

MARQUEZ: A good move? Not so much, says political science professor, Raph Sonenshein.

PROF. RAPHAEL SONENSHEIN, CALIFORNIA STATE FULLERTON: It's not the greatest time in the world to go out and get another job. You've got the bond markets watching California, that's just decided to borrow $27 billion. If ever there was a time to say let's prove we're serious about the budget and getting down to the budget, this is it.

MARQUEZ: Schwarzenegger has written a guest column for 10 years in "Muscle & Fitness," was friends with the magazine's previous owner, Joe Wieder, and has appeared on the covers of both magazines a total of 50 times. "Muscle & Fitness" and "Flex" are owned by the same company that owns the "National Enquirer" and "Star."

In the two months leading up to the recall, Schwarzenegger never made the cover of either magazine and was only mentioned twice, once negative, once positive.

SONENSHEIN: They laid off him completely. There were questions raised at the time about what arrangements there may or may not have been between the governor and his allies and those magazines. So it's already an issue. And now he's basically on staff.

MARQUEZ (on camera): A spokesman for Governor Schwarzenegger says Schwarzenegger sees no conflict of interest here, that this is simply about fitness. Neither the "National Enquirer" nor "Star" would comment about their editorial practices. But a public relations representative for American Media says Schwarzenegger got no special treatment during the recall and his new position will have no impact on the editorial integrity of the company's other publications.

Miguel Marquez, CNN, Los Angeles.

(END VIDEOTAPE)

COSTELLO: John Kerry takes his campaign to the Sunshine State. That would be Florida. You know, that's where things began to fall apart for the Democrats four years ago. We'll take a look at the front runner's efforts there. And if, in fact, John Kerry is the nominee, just who will join him on the Democratic ticket? Our Bill Schneider gives us a look at what the number two on the ticket would bring to the table.

Also, a demonstration in Haiti that turns ugly. Our Lucia Newman brings us the details.

This is DAYBREAK for Monday, March 8.

(COMMERCIAL BREAK)

COSTELLO: 6:13 Eastern time. Time for a little business buzz.

Is your office break room going low carb? Are you saying good- bye Snicker's bars?

Carrie Lee has more on this story from the NASDAQ market site.

CARRIE LEE, CNN CORRESPONDENT: Atkins...

COSTELLO: Everything is going low carb.

LEE: Atkins mania, Carol. It never ends. We talk about new developments here every week and this morning is no exception. There's a Beverly Hills, California company that's announcing low carb vending machines. They're working with a hotel chain trying to roll these out. And these machines will include Atkins branded shakes and snacks; 17 snacks in total, eight beverages. This company is called Pure Foods. They already have two low carb stores, in Beverly Hills and Santa Monica. And they're expecting that sales could hit $4.2 million in the first year from these machines. So if you're interested in those types of products, keep your eye out, Carol. We could very well see them coming down the pike.

Turning to...

COSTELLO: This is just crazy. It's like the fad that will not die.

LEE: You know, it's amazing. NPD Group, which tracks this sort of thing, says 17 percent of Americans have tried the Atkins diet, really surpassing any of the fad diets we've seen in the past. So who knows? Maybe this is going to stick. So far people don't seem to be giving up this concept at all. In fact, quite the opposite.

COSTELLO: Oh, you've got that right.

A quick look at the futures.

LEE: Yes, things looking pretty high this morning, pretty bullish, rather. We could see stocks open a little bit higher. The major market indices did end in fractionally positive territory last week.

One stock to watch, Martha Stewart Living Omnimedia. A roller coaster ride on Friday, Carol. Shares gaining about 16 percent right before her guilty verdict came out. The stock was then halted and ended the day actually lower by 23 percent. So we'll see if there's some follow through today on Martha Stewart Living Omnimedia -- Carol.

COSTELLO: We're going to talk more about Martha Stewart a little later, because she's supposed to report to her probation officer today. So that should be interesting.

LEE: That's right. That's right. And her sentencing, of course, in June.

COSTELLO: Exactly.

Carrie Lee live from the NASDAQ market site.

6:15 Eastern now.

Time to take a quick look at the top stories.

The Iraqi Governing Council has finally signed the country's often delayed interim constitution. Last minute disagreements postponed last week's singing ceremony.

Jury selection resumes today and should be completed this week in the murder trial of convicted Oklahoma City bombing co-conspirator Terry Nichols.

NASA will run tests today to find out why the rover Opportunity has been unable to collect rock samples from an important area on Mars.

We update the top stories every 15 minutes. The next update comes your way at 6:30 Eastern.

Coming up on DAYBREAK, an explosion in the stands. We'll tell you what happened during this game.

And the D.C. snipers before a judge yet again. What's in store for Mohammed and Malvo?

And our DAYBREAK Photo of the Day. Take a look. Come on, take a look. What the heck is this? We'll have the answer, when we come back.

(COMMERCIAL BREAK)

COSTELLO: All right, here is our DAYBREAK Photo of the Day.

Chad, join me, will you, please?

MYERS: Yes, sure.

COSTELLO: Can you figure out what this is?

MYERS: Well, of course, I can, Carol.

COSTELLO: Oh, no.

MYERS: It's a checkered flag painted on an infield of some race track.

COSTELLO: I should have known you would get this, Mr. NASCAR.

MYERS: Ah!

COSTELLO: It is, indeedy. It is the infield at the Las Vegas Motor Speedway.

MYERS: Ah, that's from yesterday.

COSTELLO: Yes, and that is, what, Matt Kenseth? Is that the guy's name?

MYERS: That is correct.

COSTELLO: He's in the number 17 car. I know that. And somehow he spun out after winning. I don't know.

MYERS: They do that on purpose.

COSTELLO: Oh do they? Just for fun?

MYERS: Yes, just to tear up the infield, because they do so much work painting all that, then they get to enjoy it and spin through it and do a lot of smoke burnouts and such.

COSTELLO: I'm sure the folks in Las Vegas appreciate that.

MYERS: They had a great race yesterday. It really, it wasn't a barn burner. It wasn't like they had neck and neck racing there all day, but it was a pretty decent race.

COSTELLO: I'm sure it was.

MYERS: And there was good weather.

(WEATHER REPORT)

COSTELLO: Our spring countdown is up. Only 12 days until spring now.

MYERS: And only eight days till the next snowstorm.

COSTELLO: Oh, Chad, please don't bring us down off of that.

MYERS: It's not spring yet.

COSTELLO: Well, 12 -- I said 12 days till spring.

MYERS: Well, don't be planting anything out there yet.

COSTELLO: We won't.

Thank you, Chad.

MYERS: You're welcome.

COSTELLO: Time now to check some stories making headlines around the world.

Here is our Global Minute.

In El Salvador, one person was killed, another 27 injured, after an explosion at a soccer stadium. Investigators believe the explosion was caused by pyrotechnics used to produce smoke. There is a lot of celebrating in Greece after voters chose a new direction for that country. The conservative New Democracy Party gained the majority of new parliament seats and the presidency, while the ruling Socialist Party lost for the first time in more than a decade.

In Venezuela, around half a million people took to the streets of Caracas to protest against President Hugo Chavez. And an elections council ruling against a proposed recall vote. Chavez says the recall effort is part of a plot by the Bush administration.

Jean-Bertrand Aristide, the deposed president of Haiti, is expected to talk with reporters this morning in the Central African Republic where he is currently in exile. In the meantime, in Port-au- Prince, at least four people are dead after gunfire erupts during a massive demonstration.

Lucia Newman covered the story in the Haitian capital.

(BEGIN VIDEOTAPE)

NEWMAN (voice-over): One minute, there was cheering and celebration in front of Haiti's presidential palace. The next, it was this.

(GUNSHOTS)

Gunmen armed with pistols and high powered rifles shot at anti- Aristide demonstrators, while U.S. Marines guarding the palace fired their first shots since arriving in Haiti. Nearby, an unarmed Haitian laid dead in a pool of blood. People in shock, but also angry.

The demonstration began peacefully enough with U.S. Marines and French troops joining Haitian police to escort the marches towards the palace.

UNIDENTIFIED MALE: Aristide needs to go in prison, because he's a criminal. He killed a lot of people in Haiti.

NEWMAN: There were tense moments when those celebrating last week's departure of President Aristide confronted some of his supporters. The Marines, keeping both sides apart, allowing the march to continue.

(on camera): Celebrating Aristide's departure is the easy part. Trying to get this extraordinarily polarized nation to decide on how to move forward is the real challenge.

(voice-over): A challenge that became brutally clear when even the celebration turned violent with the foreign troops who had escorted them no longer visible.

"Where were the French and American troops when we needed them?" screamed this group. Others said Marines should never have pressed rebels led by a former Army officer to lay down their weapons before disarming gangs loyal to the former president. The bullets fired by gunmen believed to be supporters of the former president also killed a Spanish television journalist seen in the back seat of this ambulance. He was shot trying to get help for an injured American photographer, seen here in a dark T-shirt.

Another dark day for Haiti. Another demonstration of how difficult it will be to achieve peace in this country.

(END VIDEOTAPE)

COSTELLO: Good morning to you.

Welcome back to DAYBREAK.

I'm Carol Costello.

It is Monday, March 8.

Thanks for waking up with us

Let me bring you up to date.

In just the last hour, Iraq's Governing Council finally sat down and did, indeed, sign the country's first interim constitution. An agreement had been reached last week, but last minute disagreements led to the delay.

More bureaucracy to fight terror. "USA Today" reporting that a new government agency will be launched today. The agency's goal will be to stop the flow of money to terrorist organizations.

Attorney General John Ashcroft remains in a Washington hospital in intensive care this morning. Four days ago, he was admitted with a severe case of gallstone pancreatitis.

Mars may be too tough for the rover Opportunity. NASA plans to test the rover today to find out why it's been unable to scrape up samples in an important area called Flat Rock.

We update the top stories every 15 minutes. Our next update comes your way at 6:45 Eastern.

History made and you saw it live right here on CNN. Pen met paper in Iraq and that country now has an interim constitution, so important in many ways.

Our Baghdad bureau chief Jane Arraf witnessed it all.

She joins us live from the convention center in Baghdad -- hello, Jane.

ARRAF: Hi, Carol.

Just a few minutes ago, all 25 members of this Governing Council picked up their gold pens and each, one after the other, signed this interim constitution. Now, that may not sound like the huge deal that it is, but there are two reasons that it is a huge deal. One is this has been delayed twice; the first by a terrible attack on the main Shia holy day, the holy day for them, attacks in the holy city of Karbala and in Baghdad that killed more than 170 people. Two days later, after the delayed ceremony, Governing Council members did not show up. Some of them had reservations.

Now, they have been working it out, hammering out their disagreements over the last couple of days. And they did come back today. Amid music, children singing and speeches, they all signed this and put it into effect. It is an interim constitution for this country, a constitution the likes of which it has never seen, many countries have never seen. It provides the basic rights, fundamental laws and democratic institutions. People here say this is the start to shape the kind of Iraq they hope to create -- Carol.

COSTELLO: I was just wondering about the impact in the Arab world.

ARRAF: That is a really interesting and important question and we're not quite sure what that impact is going to be yet. But certainly a constitution that has things such as a target of electing 25 percent women in general elections is going to have an impact on some of the countries neighboring Iraq, where women aren't allowed to even vote or even drive in some countries.

COSTELLO: I was just wondering about the impact in the Arab world.

ARRAF: That is a really interesting and important question, and were not quite sure what that impact is going to be yet. But certainly a constitution that has things such as a target of electing 25 percent women in general elections is going to have an impact on some of the countries neighboring Iraq where women aren't allowed to even vote, or even drive in some countries. It's going to have sweeping impact if it's indeed implemented and put into effect.

Now, this is the first step, Carol. But as they were signing it just before that ceremony started, there was another rocket attack in a neighborhood not far from here -- an indication that there are a lot of forces, a lot of things acting against this country stabilizing. They say that they will work through all of that; that the will of the people, in the words of one Governing Council member, is stronger than any bomb -- Carol.

COSTELLO: Jane Arraf reporting live from the Baghdad Convention Center.

Politics and crime dominate the Washington agenda this week. President Bush and Senator John Kerry ask for your vote, while two convicted killers ask for mercy.

Our Bill Prasad live in Washington with a look at the week ahead.

Good morning -- Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol. Eight months before the election and the battle lines are already clearly drawn. Republicans and Democrats exchanged angry words over the weekend, setting the tone for what we will hear this week.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): Democratic presidential candidate John Kerry on the stump in the South. On Tuesday, Mississippi, Florida, Louisiana and Texas holding nominating contests.

Kerry says he'll talk about 9/11 in his campaign. He accused the president of stonewalling the 9/11 investigation.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: I think they're slow-walking it and I think it is. I think they don't want accountability.

PRASAD: President Bush campaigns today in Texas. It's expected the president and other Republicans will continue to paint Kerry as a tax-and-spend liberal.

RUDY GIULIANI, FORMER MAYOR OF NEW YORK CITY: If you want to vote for the most liberal member of the United States Senate, the most liberal voting record, somebody who is going to raise your taxes, vote for John Kerry.

PRASAD: From politics to crime, in northern Virginia judges will formally sentence the two men convicted in the Washington-area sniper slayings. On Tuesday, a judge is expected to sentence John Allen Muhammad to death. On Wednesday, his accomplice, 19-year-old Lee Malvo, is expected to be sentenced to life in prison. Ten people were killed in the October, 2002 shootings.

(END VIDEOTAPE)

Attorneys for both men are asking for leniency. The judges do have the option of reducing the sentences, but this is highly unlikely, especially in a death penalty case.

We're live in Washington this morning. I'm Bill Prasad.

Carol -- back to you.

COSTELLO: Bill, let's talk a little bit more about presidential politics, or campaign politics, I should say. The Bush campaign ads, the ones with the images of 9/11, will the Bush people decide finally not to run them this week?

PRASAD: So far, the Bush administration is saying that it's going to stick by that ad.

Now, this ad had a brief image of 9/11. Some of the families who lost loved ones in the 9/11 tragedy had called this political exploitation. But the Bush administration is saying that this is part of the nation's history. It must be something we look at, and we just can't ignore it as we go into November. COSTELLO: All right, Bill Prasad live from Washington.

On the subject of Senator John Kerry, he will send a team to Iraq to assess the situation there. The Democratic front-runner took his campaign to Texas and Mississippi over the weekend. Earlier, Kerry told "TIME" magazine his Iraq team will help him formulate his Iraq policy positions.

President Bush, meeting over the weekend at his Texas ranch with Mexico's president, has not commented on Kerry's Iraq team idea. But White House communications director Dan Bartlett says Kerry's mission reveals, once again, that his attacks are based on politics and not facts.

Well, it is still early in the game, but the speculation on the Democratic side now is about John Kerry's choice of a running mate. Here's a guide to the possibilities, courtesy of our senior political analyst, Bill Schneider.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST (voice-over): There are 10 reasons for picking a running mate. Reason No. 1: pick someone who will help you win. The other nine reasons don't matter.

How can a running help you win? Three ways: geography, demography and message.

So, what are John Kerry's options? Democrats around the country seem to be thrilled at the prospect of a Kerry-Edwards ticket. Since Super Tuesday, Edwards has been sounding very vice presidential.

SEN. JOHN EDWARDS (D-NC), FORMER PRESIDENTIAL CANDIDATE: John Kerry has what it takes right here to be president of the United States. And I, for one, intend to do everything in my power to make him the next president of the United States.

SCHNEIDER: What Edwards really adds is message.

KERRY: He is a valiant champion of the values for which our party stands.

SCHNEIDER: Namely, populist economic values, a sharp contrast with George W. Bush.

The most competitive Southern state is Florida, land of the hanging chads, which happens to have two Democratic senators available: former astronaut Bill Nelson and former Intelligence Committee Chairman Bob Graham.

KERRY: And Bob Graham, obviously, beloved, now wrapping up at least this portion of his career.

SCHNEIDER: A portion of his career? Hmmm.

But the geography Kerry is after may not be in the South. It may be in the Midwest, in states Democrats hope to take away from Bush in 2004: Ohio, West Virginia and Missouri.

Missouri's own Dick Gephardt could help with his sharply focused economic message -- jobs, jobs, jobs.

You want demography? Try New Mexico Governor Bill Richardson. The first Hispanic on a national ticket might create excitement in the nation's largest ethnic minority. Plus, Richardson, a former ambassador to the United Nations, has international experience.

Any women who might add demographic appeal? Well, there's Arizona Governor Janet Napolitano and Louisiana Senator Mary Landrieu, two states that went for Bush in 2000.

But the woman many Democrats fantasize about is this one.

SEN. HILLARY CLINTON (D), NEW YORK: I don't think I would ever be offered; I don't think I would accept.

SCHNEIDER: That doesn't sound definitive. But would putting Senator Hillary Clinton on the ticket help Kerry win? And why not go for broke and name former President Bill Clinton to the ticket? Constitutional experts say it's OK, since you can only be elected to the presidency twice -- nothing about the vice-presidency.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: We have breaking news to tell you about. We just got these pictures in just a short time ago; in fact, this story is still developing right now.

This is in Prince George's County, Maryland, which is near Washington, D.C. You can see those two trains there. One is a commuter train, and one is a passenger train. You can see the smoke pouring from there. It's kind of a strange accident -- a freight train, rather. One is a passenger train, and one is a freight train.

Apparently, a driver was trying to cross the tracks as these two trains were approaching from opposite directions. The car got tangled up in the freight train in the undercarriage, and that caused everything to come to a stop.

We don't know injuries, deaths. We have no idea just yet, because this is just happening. It's from our CNN affiliate WTTG out of Washington.

Again, this is Prince George's County, Maryland.

And as you know, Chad, a lot of people commute to work using these trains.

CHAD MYERS, CNN METEOROLOGIST: Oh, yes.

COSTELLO: So, it's going to create quite a mess as far as people trying to get in and out of Washington to go to work this morning. MYERS: Sure. I mean, I have friends all the way up to Gaithersburg who take the train in, and then you get to P.G. County or wherever, and then you get on the Metro. And then you go downtown again. So, thousands literally, maybe tens of thousands of people would be back on those tracks as trains go by one after another after another literally every four or five minutes.

COSTELLO: Yes. And we'll try to get more information for you.

MEYERS: It's a little scary there. There is a firefighter between the two trains there. You can kind of see him.

COSTELLO: Well, hopefully they got everybody off by now.

MYERS: Yes.

(WEATHER BREAK)

(COMMERCIAL BREAK)

COSTELLO: All right, we're going to head live back to Baghdad, because Jane Arraf has managed to snag a member of the Iraqi Governing Council, Ahmed Chalabi. As you know, Iraqis have just signed an interim constitution.

Jane -- take it way.

ARRAF: Carol, we have Mr. Ahmed Chalabi with us, a member of the Governing Council, a member who had just picked up that gold pen and signed that document. And he has won a very interesting role in this.

Mr. Chalabi, you were one of the five members of the Governing Council who agreed to this, unanimously agreed, and then came back two days later and said you had reservations, delaying this for two days. What happened?

AHMED CHALABI, IRAQI GOVERNING COUNCIL: This is a great law for Iraq. Altogether, it's a great law, because it guarantees the Iraqi people a bill of rights, and it guarantees nationalities a place in Iraq and recognizes the Kurds as an equal and second nationality in the country, and it recognizes the Kurdish language as an equal official language.

Now, the issue that we had with this law was from the beginning we said over and over again that it is a law that is being legislated by an unelected body, the Governing Council, to bind an elected body, which is the constituent assembly.

The article in question that we wanted to explain was Article 61C, which could drive us into a vicious cycle, where if we don't have a permanent constitution and we would continue to have elections, then referendums, and elections and referendums, while this law becomes -- this transition becomes really a permanent law.

We wanted to get support all over the country, especially among leaders of civil society and also among the grand ayatollahs in Najaf about this. They were aware of the problem, and many other people became aware of the problem as days went by. We wanted the time, 48 hours, to extend them, and I think it was time well worth spending, because now this issue of the law is understood more. And, therefore, any negative reactions to it will be minimized, and we will have a chance to move forward to make the law more successful.

ARRAF: Now, one of the things that it seemed to point out was the immense power that the Grand Ayatollah Ali Sistani, whom you went to see with other members of the Governing Council, has over the political process. Is that a proper thing in what is supposed to be emerging as a democratic country?

CHALABI: Ayataollah Sistani is a man who is a great (UNINTELLIGIBLE). He has great respect among a huge part of the population (UNINTELLIGIBLE) tens of millions of people.

Now, Ayatollah Sistani has stated clearly that he is not interested in the minutiae of politics. He has the interests of the nation, the (UNINTELLIGIBLE). He deals with the (UNINTELLIGIBLE). We deal with the political dynamics.

And this law is an important law in the sense that it is a law that would regulate the Iraqi state. And Ayatollah Sistani has from the beginning said that he believes the constitution should be drafted and adopted by an elected body. And we wanted to assure him that this is the intent of the political process, although logic within the text of the law puts us -- may put us in a vicious circle, but we wanted to explain to him that the intent as a political process is to move forward to a permanent constitution.

We also met with other ayatollahs in Najaf, also Grand Ayatollah Mohammad Said el-Hakim (ph) and Sheikh Hafim Fayed (ph). Both of them were aware of this problem. It was of concern to them. We talked to them. They gave us to understand that they had confidence in the political leadership, and that they understood and took note and believed our intent to move towards a permanent constitution.

The whole process benefited from those two days, because we got a great deal of the Iraqi people to support us as a result.

ARRAF: Where do you go from here? Who is the U.S. going to hand power to on June 30?

CHALABI: Oh, they will hand power to an Iraqi government, which would be a sovereign government in Iraq.

ARRAF: Thank you so much.

Mr. Ahmed Chalabi, a member of the Governing Council, and one of the members who had not shown up to sign this constitution two days ago, but he is saying in the intervening time they managed to get the support they needed. They explained what the problems were, and they have come up with what he says is a great document. History made here today -- Carol.

COSTELLO: Absolutely. Jane Arraf live from Baghdad this morning.

Let's talk a little bit about Haiti now. We've been telling you all morning long that the deposed president, Jean-Bertrand Aristide, was going to speak at a news conference somewhere in Africa. Well, he has.

And David Clinch from our International Desk is here to tell us what he said.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Carol, I just want to tell you about this very briefly. Former priest, former president, now think of another word that starts with "P." But Jean- Bertrand Aristide just will not go away. We're watching a live press conference via videophone from the Central African Republic, where he was basically dumped off by a U.S. plane a number of -- a few weeks ago.

He is still saying today that he is, as far as he was concerned, was politically abducted by the U.S. military and others. He is still saying that he believes he has a role to play in Haiti. He's calling for what he calls peaceful resistance to an occupation of Haiti.

So, he is, you see it, just wrapping up here now. He still does not have asylum in this country. The Central African Republic is where he is right now. They're very uncomfortable about him speaking out. The United States is surely also uncomfortable about him speaking out, particularly about this idea that he's saying he was abducted, kidnapped, by the U.S. military.

COSTELLO: Interesting. So, I know you want to go back and monitor the rest of what he said.

CLINCH: Yes, we want to go back and listen to everything else he says. He still thinks he has a role to play, and his supporters had a role to play yesterday in Port-au-Prince. Violence in the streets left at least four dead there.

COSTELLO: It's very sad. David Clinch, many thanks.

Are we going to a break, or are we heading on? We're going -- we're going to a break now, right? All right, we're going to go to a break. When we come back, we're going to talk about Martha Stewart meeting her probation officer. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: It's 6:52 Eastern.

It won't be a good thing. Martha Stewart, now convicted, will report to her probation officer today.

A good topic over coffee this morning. Our legal analyst, Kendall Coffey, joins us live from New York.

Tell us about this process, Kendall. KENDALL COFFEY, CNN LEGAL ANALYST: Well, she's now in a process, which is the process that confronts a criminal, a felon that's been convicted in the federal system.

What we'll see within a few days are a bunch of post-trial motions. Her lawyers will basically tell the judge, judge, change your mind, throw out the conviction. That's not going to happen.

Meanwhile, she'll be meeting with her probation officer, reporting in, and there will be a process of getting together a pre- sentence investigation report, Carol. And that's going to contain the numbers, the calculations, which under the sentencing guidelines will create a range of potential sentences that would put Martha Stewart in prison.

COSTELLO: So, what kinds of information will the probation officer be responsible for?

COFFEY: Well, it's a range of things. It will include everything from her financial means. Does she have the wherewithal to pay significant fines? To looking at things and ultimately doing a calculation on whether there will be separately added to her potential sentencing exposure, which most people calculate at 10 to 16 months, some additional things.

There are enhancements which can make the sentence even worse. And the pre-sentence investigation court is going to include an analysis of potential enhancements. It could put her into prison for years.

COSTELLO: Now, I am just struggling to even imagine this: a probation officer trying to establish some sort of relationship with Martha Stewart. I mean, she is under some obligation to be very cooperative and very nice to this person, isn't she?

COFFEY: She will, and she will cooperate. And one of the things defendants do in this scenario, convicted defendants, is they try to establish a good communication with a person, because that division, which is an arm of the courts, may have a lot to say in how the report is prepared and what her potential sentencing exposure is.

The main thing she'll need to do is be completely candid, completely open and completely cooperative in every possible way.

COSTELLO: Ooh, something she has not done in the past.

COFFEY: Well, she is now going to have to really make some significant decisions. Does she continue to deny to deny, to say that this whole thing is terribly wrong, or do we start to talk about some kind of acknowledgment here? Because, let's face it, Carol, everyone who was in that courtroom with any kind of objectivity thinks she actually is guilty of the thing she was charged with.

COSTELLO: Kendall Coffey, live from New York this morning, many thanks. Now, for some more business news. U.S. stock gained fractionally last week, but finished -- little changed on Friday. The reason? The disappointing February jobs report. By the end of Friday's session, investors were focused on what else? They were focused on the Martha Stewart case. Martha Stewart Omnimedia stock was halted for trading once the guilty verdicts were announced. When the stock reopened, it fell 23 percent.

We'll be back in just a moment.

(COMMERCIAL BREAK)

MYERS: The Monkeys are getting 50 -- getting 60 now; 59.

COSTELLO: I know. It's crazy. It's crazy how old we're getting.

MYERS: My goodness!

COSTELLO: Hey, it is time for "The Lightning Round," so let's get to it.

MYERS: All right.

COSTELLO: Chad, the best in show title at the Crufts Dog Show in England went to 4-year-old Deedee. She's a whippet. She's named DeeDee. She beat out more than 21,000 other pets for this prestigious title. Oh, look at DeeDee.

MYERS: Yeah, not as good as ours at the Westminster, though.

COSTELLO: Well, you got that right.

This competition is for a different breed -- Alaska's famous Iditarod just kicked off.

MYERS: Yes.

COSTELLO: Isn't this exciting? I love this. A thousand miles from Anchorage to Nome. Would you do something like that?

MYERS: No.

COSTELLO: I wouldn't either. It's too cold.

Scientists, Chad, call it a stunning discovery -- a three-headed frog with six legs.

MYERS: Yes.

COSTELLO: Look at that thing.

MYERS: The Mensa frog society.

COSTELLO: It's a very smart frog. This was found in England, right outside of a day care center. I hope they don't drink the same water that this frog was found in.

MYERS: Yes.

COSTELLO: And I want to say thank you to Kent State University. That's where I was last week.

MYERS: That's where you were, yes.

COSTELLO: Yes, I was teaching the students there. I was a visiting faculty member, and I also finished my degree.

MYERS: Awesome, Carol.

COSTELLO: So, thanks to Kent State University. You were wonderful, and what bright and wonderful students.

MYERS: And congratulations to you, too.

COSTELLO: Thank you, Chad.

MYERS: You bet.

COSTELLO: Well, we wrap it up this morning. We'll be back tomorrow. "AMERICAN MORNING" starts right now.

MYERS: Have a great day.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com

Governor Says He Has Another Job>

Aired March 8, 2004 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you.
It is Monday, March 8.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Thanks for waking up with us.

Let me bring you up to date. It's been a busy morning.

It is official. Just moments ago the Iraqi interim constitution was signed. Despite disagreements inside and violence outside, the Iraqi Governing Council has approved the country's new interim charter.

A Human Rights Watch report out today is highly critical of U.S. forces in Afghanistan. The report cites needless civilian casualties, illegal arrests and the alleged torture of prisoners.

The search resumes this morning for a man, a woman and a 6-year- old boy missing and presumed dead in the capsizing of a tour boat in the Baltimore Harbor. Actually, it was a water taxi.

Martha Stewart reports to her probation officer today. She'll be told about restrictions on her life before she is sentenced on June 17.

And Bishop Gene Robinson officially takes control of the Episcopal Church in New Hampshire. The openly gay bishop says he'll keep reaching out to those troubled by his homosexuality.

We update the top stories every 15 minutes. The next update comes your way at 6:15 Eastern.

Pen to paper but not before a barrage of bombs. Iraq now has an interim constitution, but there are those who seem intent on spoiling this day.

Our Baghdad bureau chief Jane Arraf is watching as history is being made in Iraq.

She brings us more on this story.

Let's start with the happy news -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Carol, the happy news was that these 25 members of the Governing Council showed up. They came, they made speeches talking about what a historic day this was. And each one of them signed that document. They now have a constitution. And that included the five Shia members of the Council, who had revolted two days ago, who had gone to consult with the chief Shia cleric and came back and put pen to paper and agreed to a document that sets out a bill of rights for all Iraqis, democratic institutions, calls for full elections and essentially is the way forward, according to these people -- despite the bombs, through the bombs, through the explosions, for the way Iraq is meant to be -- Carol.

COSTELLO: It's exciting, you get to be right in the convention center there in Baghdad, where this is taking place. American officials were also in the audience.

Can you tell us a bit more about that?

ARRAF: They certainly were. L. Paul Bremer, the chief civilian administrator here, played a key role trying to bring these people together. And when we showed up at this convention center -- this was built by Saddam Hussein for the non-aligned summit and put now to a very different use. When we showed up two days ago, expecting this document to be signed, it went on for hour and hour and hour, as it became quite clear there were many disagreements. And we were told then that the U.S. really wanted the Iraqis to work themselves -- to work this out themselves, that they wanted to be able to air their grievances, to talk about it, even if it was last minute -- and come to their own agreements.

Now, they did have some help -- and, we have to understand, some pressure from the United States and Britain. It would have been a disaster had they not showed up today. But they did. They each signed it. And I'm sure this will be just the start of many debates about what exactly this constitution means and how it will be implemented.

But at least here today, at this moment, in this building, they put their names on a piece of paper that is meant to govern Iraq for years to come -- Carol.

COSTELLO: All 25 members of the Iraqi Governing Council signing that interim constitution. But the day, well, the day included violence, as well.

Can you tell us where it happened in Iraq -- Jane.

ARRAF: That was not too far from here, another rocket attack near a police station. And police, we have to remember, are a frequent target of attacks these days. There were three civilians injured and reports of three policemen injured, as well, Carol.

And last night, of course, rocket attacks just across from here, very close to here, across the street at the Rashid Hotel, where coalition officials had been staying before a previous rocket attack there. But it's an indication that this violence is not going to end. No one expects those bombs to stop with the sighing of this constitution. They say that their will is stronger than the bombs -- Carol.

COSTELLO: Jane Arraf reporting live from the Baghdad convention center.

Let's talk about what's happening this morning in Baltimore. Rescue workers are just about to begin searching again, searching the chilly waters of the Inner Harbor, looking for three missing people. Those people -- a man, a woman and a 6-year-old boy -- now presumed dead after a water taxi capsized over the weekend. Twenty-two people were rescued, but one of them, a 60-year-old woman, later died.

As for how it happened, authorities blame a freak storm.

(BEGIN VIDEO CLIP)

CHIEF WILLIAM GOODWIN, BALTIMORE FIRE DEPARTMENT: It was a fast moving, as I called it this morning, anomaly. It started out and in five minutes was gone, traveling at 50 miles per hour, accompanying thunderstorms and high winds with it.

(END VIDEO CLIP)

COSTELLO: You can find out more about the water taxi investigation later this morning on CNN. NTSB Chairman Ellen Engleman Connors will be a guest in the eight o'clock Eastern hour of AMERICAN MORNING.

News across America now. A man and a 4-year-old girl are dead, a woman is missing, after heavy rains caused flash floods in Kentucky. It's believed all three victims were swept into flood waters as rains pounded eastern and central parts of that state. The girl was in a pickup truck that plunged into a swollen creek.

At UCLA, a second arrest in what the "Los Angeles Times" says is a stolen body parts investigation. The latest man arrested, not a university employee, is charged with receiving stolen property. On Saturday, the director of UCLA's donated cadaver program was arrested and charged with grand theft.

For more than 30 Boy Scouts in Utah, a field trip to learn winter survival techniques got a little too real. While the Scouts were asleep in snow caves, an avalanche buried the cave entrances under six feet of snow. But Scout leaders called for help and rescue workers dug the boys out. All are safe this morning.

Can you imagine that?

CHAD MYERS, CNN CORRESPONDENT: Wow!

COSTELLO: They were there to learn about survival techniques, in the case of an avalanche, and one happens.

MYERS: Well, they put their learning and their training to a test. And it worked out for them.

COSTELLO: Thank goodness. MYERS: You know what, Carol? I was listening to Jane Arraf's story and even David Clinch, and I was wondering, can the Iraqis even see this? I mean do they have television? Is the television working?

COSTELLO: Yes.

MYERS: Do they have power to see it?

COSTELLO: Well, some of them do.

MYERS: Yes, I mean...

COSTELLO: But a lot of them have TV sets and they can watch it.

MYERS: Well, that's good.

COSTELLO: A lot of people are in the audience, as well.

MYERS: Yes?

COSTELLO: So it's an exciting time in Baghdad this morning.

MYERS: It sure is. It'd be a shame if the country of Iraq couldn't watch the signing of that constitution, you know? Because I know Americans, even if we had one TV for 35 people, there would be 35 people watching one TV all around the country, right? It's just been a, quite an exciting moment.

COSTELLO: Exactly. Well, we were wondering, you know, all 25 members of the Iraqi Governing Council were signing it.

MYERS: Yes?

COSTELLO: But then you think to our own constitution, pretty much everybody signed it there, too.

MYERS: I know.

COSTELLO: Interesting.

MYERS: Yes, it is. It's a good time for them, an exciting time for Iraq.

(WEATHER REPORT)

COSTELLO: In California, the governor is flexing his multi- tasking muscles. Arnold Schwarzenegger, who is already facing a huge money crisis and trying to navigate through a gay marriage mine field, now he's an editor.

Details from CNN's Miguel Marquez.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): California's celebrity governor says he has another job. GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: I am announcing here today that I will be, from now on, the executive editor of "Muscle & Fitness" and "Flex" magazine. Is that a good move or what, huh?

MARQUEZ: A good move? Not so much, says political science professor, Raph Sonenshein.

PROF. RAPHAEL SONENSHEIN, CALIFORNIA STATE FULLERTON: It's not the greatest time in the world to go out and get another job. You've got the bond markets watching California, that's just decided to borrow $27 billion. If ever there was a time to say let's prove we're serious about the budget and getting down to the budget, this is it.

MARQUEZ: Schwarzenegger has written a guest column for 10 years in "Muscle & Fitness," was friends with the magazine's previous owner, Joe Wieder, and has appeared on the covers of both magazines a total of 50 times. "Muscle & Fitness" and "Flex" are owned by the same company that owns the "National Enquirer" and "Star."

In the two months leading up to the recall, Schwarzenegger never made the cover of either magazine and was only mentioned twice, once negative, once positive.

SONENSHEIN: They laid off him completely. There were questions raised at the time about what arrangements there may or may not have been between the governor and his allies and those magazines. So it's already an issue. And now he's basically on staff.

MARQUEZ (on camera): A spokesman for Governor Schwarzenegger says Schwarzenegger sees no conflict of interest here, that this is simply about fitness. Neither the "National Enquirer" nor "Star" would comment about their editorial practices. But a public relations representative for American Media says Schwarzenegger got no special treatment during the recall and his new position will have no impact on the editorial integrity of the company's other publications.

Miguel Marquez, CNN, Los Angeles.

(END VIDEOTAPE)

COSTELLO: John Kerry takes his campaign to the Sunshine State. That would be Florida. You know, that's where things began to fall apart for the Democrats four years ago. We'll take a look at the front runner's efforts there. And if, in fact, John Kerry is the nominee, just who will join him on the Democratic ticket? Our Bill Schneider gives us a look at what the number two on the ticket would bring to the table.

Also, a demonstration in Haiti that turns ugly. Our Lucia Newman brings us the details.

This is DAYBREAK for Monday, March 8.

(COMMERCIAL BREAK)

COSTELLO: 6:13 Eastern time. Time for a little business buzz.

Is your office break room going low carb? Are you saying good- bye Snicker's bars?

Carrie Lee has more on this story from the NASDAQ market site.

CARRIE LEE, CNN CORRESPONDENT: Atkins...

COSTELLO: Everything is going low carb.

LEE: Atkins mania, Carol. It never ends. We talk about new developments here every week and this morning is no exception. There's a Beverly Hills, California company that's announcing low carb vending machines. They're working with a hotel chain trying to roll these out. And these machines will include Atkins branded shakes and snacks; 17 snacks in total, eight beverages. This company is called Pure Foods. They already have two low carb stores, in Beverly Hills and Santa Monica. And they're expecting that sales could hit $4.2 million in the first year from these machines. So if you're interested in those types of products, keep your eye out, Carol. We could very well see them coming down the pike.

Turning to...

COSTELLO: This is just crazy. It's like the fad that will not die.

LEE: You know, it's amazing. NPD Group, which tracks this sort of thing, says 17 percent of Americans have tried the Atkins diet, really surpassing any of the fad diets we've seen in the past. So who knows? Maybe this is going to stick. So far people don't seem to be giving up this concept at all. In fact, quite the opposite.

COSTELLO: Oh, you've got that right.

A quick look at the futures.

LEE: Yes, things looking pretty high this morning, pretty bullish, rather. We could see stocks open a little bit higher. The major market indices did end in fractionally positive territory last week.

One stock to watch, Martha Stewart Living Omnimedia. A roller coaster ride on Friday, Carol. Shares gaining about 16 percent right before her guilty verdict came out. The stock was then halted and ended the day actually lower by 23 percent. So we'll see if there's some follow through today on Martha Stewart Living Omnimedia -- Carol.

COSTELLO: We're going to talk more about Martha Stewart a little later, because she's supposed to report to her probation officer today. So that should be interesting.

LEE: That's right. That's right. And her sentencing, of course, in June.

COSTELLO: Exactly.

Carrie Lee live from the NASDAQ market site.

6:15 Eastern now.

Time to take a quick look at the top stories.

The Iraqi Governing Council has finally signed the country's often delayed interim constitution. Last minute disagreements postponed last week's singing ceremony.

Jury selection resumes today and should be completed this week in the murder trial of convicted Oklahoma City bombing co-conspirator Terry Nichols.

NASA will run tests today to find out why the rover Opportunity has been unable to collect rock samples from an important area on Mars.

We update the top stories every 15 minutes. The next update comes your way at 6:30 Eastern.

Coming up on DAYBREAK, an explosion in the stands. We'll tell you what happened during this game.

And the D.C. snipers before a judge yet again. What's in store for Mohammed and Malvo?

And our DAYBREAK Photo of the Day. Take a look. Come on, take a look. What the heck is this? We'll have the answer, when we come back.

(COMMERCIAL BREAK)

COSTELLO: All right, here is our DAYBREAK Photo of the Day.

Chad, join me, will you, please?

MYERS: Yes, sure.

COSTELLO: Can you figure out what this is?

MYERS: Well, of course, I can, Carol.

COSTELLO: Oh, no.

MYERS: It's a checkered flag painted on an infield of some race track.

COSTELLO: I should have known you would get this, Mr. NASCAR.

MYERS: Ah!

COSTELLO: It is, indeedy. It is the infield at the Las Vegas Motor Speedway.

MYERS: Ah, that's from yesterday.

COSTELLO: Yes, and that is, what, Matt Kenseth? Is that the guy's name?

MYERS: That is correct.

COSTELLO: He's in the number 17 car. I know that. And somehow he spun out after winning. I don't know.

MYERS: They do that on purpose.

COSTELLO: Oh do they? Just for fun?

MYERS: Yes, just to tear up the infield, because they do so much work painting all that, then they get to enjoy it and spin through it and do a lot of smoke burnouts and such.

COSTELLO: I'm sure the folks in Las Vegas appreciate that.

MYERS: They had a great race yesterday. It really, it wasn't a barn burner. It wasn't like they had neck and neck racing there all day, but it was a pretty decent race.

COSTELLO: I'm sure it was.

MYERS: And there was good weather.

(WEATHER REPORT)

COSTELLO: Our spring countdown is up. Only 12 days until spring now.

MYERS: And only eight days till the next snowstorm.

COSTELLO: Oh, Chad, please don't bring us down off of that.

MYERS: It's not spring yet.

COSTELLO: Well, 12 -- I said 12 days till spring.

MYERS: Well, don't be planting anything out there yet.

COSTELLO: We won't.

Thank you, Chad.

MYERS: You're welcome.

COSTELLO: Time now to check some stories making headlines around the world.

Here is our Global Minute.

In El Salvador, one person was killed, another 27 injured, after an explosion at a soccer stadium. Investigators believe the explosion was caused by pyrotechnics used to produce smoke. There is a lot of celebrating in Greece after voters chose a new direction for that country. The conservative New Democracy Party gained the majority of new parliament seats and the presidency, while the ruling Socialist Party lost for the first time in more than a decade.

In Venezuela, around half a million people took to the streets of Caracas to protest against President Hugo Chavez. And an elections council ruling against a proposed recall vote. Chavez says the recall effort is part of a plot by the Bush administration.

Jean-Bertrand Aristide, the deposed president of Haiti, is expected to talk with reporters this morning in the Central African Republic where he is currently in exile. In the meantime, in Port-au- Prince, at least four people are dead after gunfire erupts during a massive demonstration.

Lucia Newman covered the story in the Haitian capital.

(BEGIN VIDEOTAPE)

NEWMAN (voice-over): One minute, there was cheering and celebration in front of Haiti's presidential palace. The next, it was this.

(GUNSHOTS)

Gunmen armed with pistols and high powered rifles shot at anti- Aristide demonstrators, while U.S. Marines guarding the palace fired their first shots since arriving in Haiti. Nearby, an unarmed Haitian laid dead in a pool of blood. People in shock, but also angry.

The demonstration began peacefully enough with U.S. Marines and French troops joining Haitian police to escort the marches towards the palace.

UNIDENTIFIED MALE: Aristide needs to go in prison, because he's a criminal. He killed a lot of people in Haiti.

NEWMAN: There were tense moments when those celebrating last week's departure of President Aristide confronted some of his supporters. The Marines, keeping both sides apart, allowing the march to continue.

(on camera): Celebrating Aristide's departure is the easy part. Trying to get this extraordinarily polarized nation to decide on how to move forward is the real challenge.

(voice-over): A challenge that became brutally clear when even the celebration turned violent with the foreign troops who had escorted them no longer visible.

"Where were the French and American troops when we needed them?" screamed this group. Others said Marines should never have pressed rebels led by a former Army officer to lay down their weapons before disarming gangs loyal to the former president. The bullets fired by gunmen believed to be supporters of the former president also killed a Spanish television journalist seen in the back seat of this ambulance. He was shot trying to get help for an injured American photographer, seen here in a dark T-shirt.

Another dark day for Haiti. Another demonstration of how difficult it will be to achieve peace in this country.

(END VIDEOTAPE)

COSTELLO: Good morning to you.

Welcome back to DAYBREAK.

I'm Carol Costello.

It is Monday, March 8.

Thanks for waking up with us

Let me bring you up to date.

In just the last hour, Iraq's Governing Council finally sat down and did, indeed, sign the country's first interim constitution. An agreement had been reached last week, but last minute disagreements led to the delay.

More bureaucracy to fight terror. "USA Today" reporting that a new government agency will be launched today. The agency's goal will be to stop the flow of money to terrorist organizations.

Attorney General John Ashcroft remains in a Washington hospital in intensive care this morning. Four days ago, he was admitted with a severe case of gallstone pancreatitis.

Mars may be too tough for the rover Opportunity. NASA plans to test the rover today to find out why it's been unable to scrape up samples in an important area called Flat Rock.

We update the top stories every 15 minutes. Our next update comes your way at 6:45 Eastern.

History made and you saw it live right here on CNN. Pen met paper in Iraq and that country now has an interim constitution, so important in many ways.

Our Baghdad bureau chief Jane Arraf witnessed it all.

She joins us live from the convention center in Baghdad -- hello, Jane.

ARRAF: Hi, Carol.

Just a few minutes ago, all 25 members of this Governing Council picked up their gold pens and each, one after the other, signed this interim constitution. Now, that may not sound like the huge deal that it is, but there are two reasons that it is a huge deal. One is this has been delayed twice; the first by a terrible attack on the main Shia holy day, the holy day for them, attacks in the holy city of Karbala and in Baghdad that killed more than 170 people. Two days later, after the delayed ceremony, Governing Council members did not show up. Some of them had reservations.

Now, they have been working it out, hammering out their disagreements over the last couple of days. And they did come back today. Amid music, children singing and speeches, they all signed this and put it into effect. It is an interim constitution for this country, a constitution the likes of which it has never seen, many countries have never seen. It provides the basic rights, fundamental laws and democratic institutions. People here say this is the start to shape the kind of Iraq they hope to create -- Carol.

COSTELLO: I was just wondering about the impact in the Arab world.

ARRAF: That is a really interesting and important question and we're not quite sure what that impact is going to be yet. But certainly a constitution that has things such as a target of electing 25 percent women in general elections is going to have an impact on some of the countries neighboring Iraq, where women aren't allowed to even vote or even drive in some countries.

COSTELLO: I was just wondering about the impact in the Arab world.

ARRAF: That is a really interesting and important question, and were not quite sure what that impact is going to be yet. But certainly a constitution that has things such as a target of electing 25 percent women in general elections is going to have an impact on some of the countries neighboring Iraq where women aren't allowed to even vote, or even drive in some countries. It's going to have sweeping impact if it's indeed implemented and put into effect.

Now, this is the first step, Carol. But as they were signing it just before that ceremony started, there was another rocket attack in a neighborhood not far from here -- an indication that there are a lot of forces, a lot of things acting against this country stabilizing. They say that they will work through all of that; that the will of the people, in the words of one Governing Council member, is stronger than any bomb -- Carol.

COSTELLO: Jane Arraf reporting live from the Baghdad Convention Center.

Politics and crime dominate the Washington agenda this week. President Bush and Senator John Kerry ask for your vote, while two convicted killers ask for mercy.

Our Bill Prasad live in Washington with a look at the week ahead.

Good morning -- Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol. Eight months before the election and the battle lines are already clearly drawn. Republicans and Democrats exchanged angry words over the weekend, setting the tone for what we will hear this week.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): Democratic presidential candidate John Kerry on the stump in the South. On Tuesday, Mississippi, Florida, Louisiana and Texas holding nominating contests.

Kerry says he'll talk about 9/11 in his campaign. He accused the president of stonewalling the 9/11 investigation.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: I think they're slow-walking it and I think it is. I think they don't want accountability.

PRASAD: President Bush campaigns today in Texas. It's expected the president and other Republicans will continue to paint Kerry as a tax-and-spend liberal.

RUDY GIULIANI, FORMER MAYOR OF NEW YORK CITY: If you want to vote for the most liberal member of the United States Senate, the most liberal voting record, somebody who is going to raise your taxes, vote for John Kerry.

PRASAD: From politics to crime, in northern Virginia judges will formally sentence the two men convicted in the Washington-area sniper slayings. On Tuesday, a judge is expected to sentence John Allen Muhammad to death. On Wednesday, his accomplice, 19-year-old Lee Malvo, is expected to be sentenced to life in prison. Ten people were killed in the October, 2002 shootings.

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Attorneys for both men are asking for leniency. The judges do have the option of reducing the sentences, but this is highly unlikely, especially in a death penalty case.

We're live in Washington this morning. I'm Bill Prasad.

Carol -- back to you.

COSTELLO: Bill, let's talk a little bit more about presidential politics, or campaign politics, I should say. The Bush campaign ads, the ones with the images of 9/11, will the Bush people decide finally not to run them this week?

PRASAD: So far, the Bush administration is saying that it's going to stick by that ad.

Now, this ad had a brief image of 9/11. Some of the families who lost loved ones in the 9/11 tragedy had called this political exploitation. But the Bush administration is saying that this is part of the nation's history. It must be something we look at, and we just can't ignore it as we go into November. COSTELLO: All right, Bill Prasad live from Washington.

On the subject of Senator John Kerry, he will send a team to Iraq to assess the situation there. The Democratic front-runner took his campaign to Texas and Mississippi over the weekend. Earlier, Kerry told "TIME" magazine his Iraq team will help him formulate his Iraq policy positions.

President Bush, meeting over the weekend at his Texas ranch with Mexico's president, has not commented on Kerry's Iraq team idea. But White House communications director Dan Bartlett says Kerry's mission reveals, once again, that his attacks are based on politics and not facts.

Well, it is still early in the game, but the speculation on the Democratic side now is about John Kerry's choice of a running mate. Here's a guide to the possibilities, courtesy of our senior political analyst, Bill Schneider.

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WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST (voice-over): There are 10 reasons for picking a running mate. Reason No. 1: pick someone who will help you win. The other nine reasons don't matter.

How can a running help you win? Three ways: geography, demography and message.

So, what are John Kerry's options? Democrats around the country seem to be thrilled at the prospect of a Kerry-Edwards ticket. Since Super Tuesday, Edwards has been sounding very vice presidential.

SEN. JOHN EDWARDS (D-NC), FORMER PRESIDENTIAL CANDIDATE: John Kerry has what it takes right here to be president of the United States. And I, for one, intend to do everything in my power to make him the next president of the United States.

SCHNEIDER: What Edwards really adds is message.

KERRY: He is a valiant champion of the values for which our party stands.

SCHNEIDER: Namely, populist economic values, a sharp contrast with George W. Bush.

The most competitive Southern state is Florida, land of the hanging chads, which happens to have two Democratic senators available: former astronaut Bill Nelson and former Intelligence Committee Chairman Bob Graham.

KERRY: And Bob Graham, obviously, beloved, now wrapping up at least this portion of his career.

SCHNEIDER: A portion of his career? Hmmm.

But the geography Kerry is after may not be in the South. It may be in the Midwest, in states Democrats hope to take away from Bush in 2004: Ohio, West Virginia and Missouri.

Missouri's own Dick Gephardt could help with his sharply focused economic message -- jobs, jobs, jobs.

You want demography? Try New Mexico Governor Bill Richardson. The first Hispanic on a national ticket might create excitement in the nation's largest ethnic minority. Plus, Richardson, a former ambassador to the United Nations, has international experience.

Any women who might add demographic appeal? Well, there's Arizona Governor Janet Napolitano and Louisiana Senator Mary Landrieu, two states that went for Bush in 2000.

But the woman many Democrats fantasize about is this one.

SEN. HILLARY CLINTON (D), NEW YORK: I don't think I would ever be offered; I don't think I would accept.

SCHNEIDER: That doesn't sound definitive. But would putting Senator Hillary Clinton on the ticket help Kerry win? And why not go for broke and name former President Bill Clinton to the ticket? Constitutional experts say it's OK, since you can only be elected to the presidency twice -- nothing about the vice-presidency.

Bill Schneider, CNN, Washington.

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COSTELLO: We have breaking news to tell you about. We just got these pictures in just a short time ago; in fact, this story is still developing right now.

This is in Prince George's County, Maryland, which is near Washington, D.C. You can see those two trains there. One is a commuter train, and one is a passenger train. You can see the smoke pouring from there. It's kind of a strange accident -- a freight train, rather. One is a passenger train, and one is a freight train.

Apparently, a driver was trying to cross the tracks as these two trains were approaching from opposite directions. The car got tangled up in the freight train in the undercarriage, and that caused everything to come to a stop.

We don't know injuries, deaths. We have no idea just yet, because this is just happening. It's from our CNN affiliate WTTG out of Washington.

Again, this is Prince George's County, Maryland.

And as you know, Chad, a lot of people commute to work using these trains.

CHAD MYERS, CNN METEOROLOGIST: Oh, yes.

COSTELLO: So, it's going to create quite a mess as far as people trying to get in and out of Washington to go to work this morning. MYERS: Sure. I mean, I have friends all the way up to Gaithersburg who take the train in, and then you get to P.G. County or wherever, and then you get on the Metro. And then you go downtown again. So, thousands literally, maybe tens of thousands of people would be back on those tracks as trains go by one after another after another literally every four or five minutes.

COSTELLO: Yes. And we'll try to get more information for you.

MEYERS: It's a little scary there. There is a firefighter between the two trains there. You can kind of see him.

COSTELLO: Well, hopefully they got everybody off by now.

MYERS: Yes.

(WEATHER BREAK)

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COSTELLO: All right, we're going to head live back to Baghdad, because Jane Arraf has managed to snag a member of the Iraqi Governing Council, Ahmed Chalabi. As you know, Iraqis have just signed an interim constitution.

Jane -- take it way.

ARRAF: Carol, we have Mr. Ahmed Chalabi with us, a member of the Governing Council, a member who had just picked up that gold pen and signed that document. And he has won a very interesting role in this.

Mr. Chalabi, you were one of the five members of the Governing Council who agreed to this, unanimously agreed, and then came back two days later and said you had reservations, delaying this for two days. What happened?

AHMED CHALABI, IRAQI GOVERNING COUNCIL: This is a great law for Iraq. Altogether, it's a great law, because it guarantees the Iraqi people a bill of rights, and it guarantees nationalities a place in Iraq and recognizes the Kurds as an equal and second nationality in the country, and it recognizes the Kurdish language as an equal official language.

Now, the issue that we had with this law was from the beginning we said over and over again that it is a law that is being legislated by an unelected body, the Governing Council, to bind an elected body, which is the constituent assembly.

The article in question that we wanted to explain was Article 61C, which could drive us into a vicious cycle, where if we don't have a permanent constitution and we would continue to have elections, then referendums, and elections and referendums, while this law becomes -- this transition becomes really a permanent law.

We wanted to get support all over the country, especially among leaders of civil society and also among the grand ayatollahs in Najaf about this. They were aware of the problem, and many other people became aware of the problem as days went by. We wanted the time, 48 hours, to extend them, and I think it was time well worth spending, because now this issue of the law is understood more. And, therefore, any negative reactions to it will be minimized, and we will have a chance to move forward to make the law more successful.

ARRAF: Now, one of the things that it seemed to point out was the immense power that the Grand Ayatollah Ali Sistani, whom you went to see with other members of the Governing Council, has over the political process. Is that a proper thing in what is supposed to be emerging as a democratic country?

CHALABI: Ayataollah Sistani is a man who is a great (UNINTELLIGIBLE). He has great respect among a huge part of the population (UNINTELLIGIBLE) tens of millions of people.

Now, Ayatollah Sistani has stated clearly that he is not interested in the minutiae of politics. He has the interests of the nation, the (UNINTELLIGIBLE). He deals with the (UNINTELLIGIBLE). We deal with the political dynamics.

And this law is an important law in the sense that it is a law that would regulate the Iraqi state. And Ayatollah Sistani has from the beginning said that he believes the constitution should be drafted and adopted by an elected body. And we wanted to assure him that this is the intent of the political process, although logic within the text of the law puts us -- may put us in a vicious circle, but we wanted to explain to him that the intent as a political process is to move forward to a permanent constitution.

We also met with other ayatollahs in Najaf, also Grand Ayatollah Mohammad Said el-Hakim (ph) and Sheikh Hafim Fayed (ph). Both of them were aware of this problem. It was of concern to them. We talked to them. They gave us to understand that they had confidence in the political leadership, and that they understood and took note and believed our intent to move towards a permanent constitution.

The whole process benefited from those two days, because we got a great deal of the Iraqi people to support us as a result.

ARRAF: Where do you go from here? Who is the U.S. going to hand power to on June 30?

CHALABI: Oh, they will hand power to an Iraqi government, which would be a sovereign government in Iraq.

ARRAF: Thank you so much.

Mr. Ahmed Chalabi, a member of the Governing Council, and one of the members who had not shown up to sign this constitution two days ago, but he is saying in the intervening time they managed to get the support they needed. They explained what the problems were, and they have come up with what he says is a great document. History made here today -- Carol.

COSTELLO: Absolutely. Jane Arraf live from Baghdad this morning.

Let's talk a little bit about Haiti now. We've been telling you all morning long that the deposed president, Jean-Bertrand Aristide, was going to speak at a news conference somewhere in Africa. Well, he has.

And David Clinch from our International Desk is here to tell us what he said.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Carol, I just want to tell you about this very briefly. Former priest, former president, now think of another word that starts with "P." But Jean- Bertrand Aristide just will not go away. We're watching a live press conference via videophone from the Central African Republic, where he was basically dumped off by a U.S. plane a number of -- a few weeks ago.

He is still saying today that he is, as far as he was concerned, was politically abducted by the U.S. military and others. He is still saying that he believes he has a role to play in Haiti. He's calling for what he calls peaceful resistance to an occupation of Haiti.

So, he is, you see it, just wrapping up here now. He still does not have asylum in this country. The Central African Republic is where he is right now. They're very uncomfortable about him speaking out. The United States is surely also uncomfortable about him speaking out, particularly about this idea that he's saying he was abducted, kidnapped, by the U.S. military.

COSTELLO: Interesting. So, I know you want to go back and monitor the rest of what he said.

CLINCH: Yes, we want to go back and listen to everything else he says. He still thinks he has a role to play, and his supporters had a role to play yesterday in Port-au-Prince. Violence in the streets left at least four dead there.

COSTELLO: It's very sad. David Clinch, many thanks.

Are we going to a break, or are we heading on? We're going -- we're going to a break now, right? All right, we're going to go to a break. When we come back, we're going to talk about Martha Stewart meeting her probation officer. We'll be right back.

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COSTELLO: It's 6:52 Eastern.

It won't be a good thing. Martha Stewart, now convicted, will report to her probation officer today.

A good topic over coffee this morning. Our legal analyst, Kendall Coffey, joins us live from New York.

Tell us about this process, Kendall. KENDALL COFFEY, CNN LEGAL ANALYST: Well, she's now in a process, which is the process that confronts a criminal, a felon that's been convicted in the federal system.

What we'll see within a few days are a bunch of post-trial motions. Her lawyers will basically tell the judge, judge, change your mind, throw out the conviction. That's not going to happen.

Meanwhile, she'll be meeting with her probation officer, reporting in, and there will be a process of getting together a pre- sentence investigation report, Carol. And that's going to contain the numbers, the calculations, which under the sentencing guidelines will create a range of potential sentences that would put Martha Stewart in prison.

COSTELLO: So, what kinds of information will the probation officer be responsible for?

COFFEY: Well, it's a range of things. It will include everything from her financial means. Does she have the wherewithal to pay significant fines? To looking at things and ultimately doing a calculation on whether there will be separately added to her potential sentencing exposure, which most people calculate at 10 to 16 months, some additional things.

There are enhancements which can make the sentence even worse. And the pre-sentence investigation court is going to include an analysis of potential enhancements. It could put her into prison for years.

COSTELLO: Now, I am just struggling to even imagine this: a probation officer trying to establish some sort of relationship with Martha Stewart. I mean, she is under some obligation to be very cooperative and very nice to this person, isn't she?

COFFEY: She will, and she will cooperate. And one of the things defendants do in this scenario, convicted defendants, is they try to establish a good communication with a person, because that division, which is an arm of the courts, may have a lot to say in how the report is prepared and what her potential sentencing exposure is.

The main thing she'll need to do is be completely candid, completely open and completely cooperative in every possible way.

COSTELLO: Ooh, something she has not done in the past.

COFFEY: Well, she is now going to have to really make some significant decisions. Does she continue to deny to deny, to say that this whole thing is terribly wrong, or do we start to talk about some kind of acknowledgment here? Because, let's face it, Carol, everyone who was in that courtroom with any kind of objectivity thinks she actually is guilty of the thing she was charged with.

COSTELLO: Kendall Coffey, live from New York this morning, many thanks. Now, for some more business news. U.S. stock gained fractionally last week, but finished -- little changed on Friday. The reason? The disappointing February jobs report. By the end of Friday's session, investors were focused on what else? They were focused on the Martha Stewart case. Martha Stewart Omnimedia stock was halted for trading once the guilty verdicts were announced. When the stock reopened, it fell 23 percent.

We'll be back in just a moment.

(COMMERCIAL BREAK)

MYERS: The Monkeys are getting 50 -- getting 60 now; 59.

COSTELLO: I know. It's crazy. It's crazy how old we're getting.

MYERS: My goodness!

COSTELLO: Hey, it is time for "The Lightning Round," so let's get to it.

MYERS: All right.

COSTELLO: Chad, the best in show title at the Crufts Dog Show in England went to 4-year-old Deedee. She's a whippet. She's named DeeDee. She beat out more than 21,000 other pets for this prestigious title. Oh, look at DeeDee.

MYERS: Yeah, not as good as ours at the Westminster, though.

COSTELLO: Well, you got that right.

This competition is for a different breed -- Alaska's famous Iditarod just kicked off.

MYERS: Yes.

COSTELLO: Isn't this exciting? I love this. A thousand miles from Anchorage to Nome. Would you do something like that?

MYERS: No.

COSTELLO: I wouldn't either. It's too cold.

Scientists, Chad, call it a stunning discovery -- a three-headed frog with six legs.

MYERS: Yes.

COSTELLO: Look at that thing.

MYERS: The Mensa frog society.

COSTELLO: It's a very smart frog. This was found in England, right outside of a day care center. I hope they don't drink the same water that this frog was found in.

MYERS: Yes.

COSTELLO: And I want to say thank you to Kent State University. That's where I was last week.

MYERS: That's where you were, yes.

COSTELLO: Yes, I was teaching the students there. I was a visiting faculty member, and I also finished my degree.

MYERS: Awesome, Carol.

COSTELLO: So, thanks to Kent State University. You were wonderful, and what bright and wonderful students.

MYERS: And congratulations to you, too.

COSTELLO: Thank you, Chad.

MYERS: You bet.

COSTELLO: Well, we wrap it up this morning. We'll be back tomorrow. "AMERICAN MORNING" starts right now.

MYERS: Have a great day.

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