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CNN Live At Daybreak

Returning Control to Iraq; Presidential Candidates; Taiwan Presidential Elections; March Madness

Aired March 18, 2004 - 05:30   ET

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


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


CAROL COSTELLO, CNN ANCHOR: And across Kosovo, at least 10 people are dead in ethnic clashes across the country. U.N. officials call it the worst violence since the end of the Kosovo War in 1999.
We update our 'Top Stories' every 15 minutes. The next update comes your way at 5:45 Eastern.

The FBI now on the scene of that huge explosion at a hotel in Baghdad. A suspected suicide car bomb with more than 1,000 pounds of explosives destroyed a hotel, some nearby homes and a few other buildings. The U.S. military says 17 people are known dead and as many as 50 wounded.

Before all that, U.S. forces had raided 22 homes in Baghdad arresting 15 people and confiscating several computers that could yield clues about daily attacks. Also Wednesday, a mortar attack near Baghdad killed two U.S. soldiers with the 13th Core Support Command. Six soldiers were wounded.

Those bombers appear to be going after easier targets and that means civilians. About three-and-a-half months from now, the U.S. is to transfer day-to-day control of the country back into Iraqi hands.

Providing some insight for us now is terrorism expert Sajjan Gohel of the Asia-Pacific Foundation. He joins us live from London.

Thank you for joining us.

SAJJAN GOHEL, TERRORISM EXPERT, ASIA-PACIFIC FOUNDATION: My pleasure.

COSTELLO: First of all, let's talk about these soft targets. Should we expect many more?

GOHEL: Well, yes, I am afraid we have to expect that terrorists inside of Iraq are looking for soft targets where there are a possibility of mass casualty attacks that will create devastation and further undermine the security operators in Iraq. And their ultimate goal is to prevent Iraq from progressing.

COSTELLO: Is there any way to determine whether this is the work of Ansar al-Islam, you know that terrorist group based in northern Iraq, or is it someone with ties to al Qaeda responsible for this?

GOHEL: Well I think we have to look at the type of attack. It seemed to have been a very large, powerful vehicle attack packed with over 1,000 pounds of explosives. We have seen that terrorists around the world have used that type of tactic before. And I think definitely a powerful transnational terrorist outfit like Ansar al- Islam, which is affiliated to al Qaeda, or the groups linked to Abu Musab al-Zarqawi, perhaps the most wanted terrorist inside of Iraq, could have planned this type of attack. It definitely bears their hallmarks.

COSTELLO: I want to show our viewers a piece of videotape we just got in this morning. This is from an Arab television station, and they were doing a live shot with a woman you are going to see. And you can see the explosion going off behind her across the street. There you see it, and how powerful that was.

The location of this bombing, does it have any special meaning, and I mean that television stations were around and journalists were literally right next door at another hotel?

GOHEL: Well I think the fact that this hotel was not protected, it did not have adequate security, it wasn't in the green zone, it was -- it was an area where it was possible to prey to mass casualty attack. Obviously it was chosen well in advance.

I think this is the problem that we're facing that these types of individuals, these terrorists, they look for these types of targets. They are no longer going after ones they think will be difficult to attack. They want to go for the devastating, spectacular attack.

The fact that this hotel was completely flattened showed how deliberate and menacing these people are. And this is just part of the problem that we are now facing that they are determined to drive out any element inside Iraq that contribute to its future well being.

We have seen the U.N. has been attacked, the Red Cross, the Italian troops in Nasiriya, Kurds in the north, Shi'as in a -- in a celebration. We are looking at all kinds of attacks. They are determined, these terrorists, to try and isolate the U.S. in any way possible.

COSTELLO: Walter Rodgers spoke to us a short time ago and he said many Iraqis are blaming Americans for this latest attacks and others. Is there any way to change minds?

GOHEL: The biggest problem that we're facing in Iraq is a lack of quality intelligence as to where these terror cells are operating, what they are planning to do and we need to improve our local intelligence. And, unfortunately, the best local intelligence is to get cooperation from the Iraqis, many of whom are frightened in helping because they may fear that their own lives are in danger.

But the only way we can directly challenge this is to find out where these terror cells are planning future attacks. And also prevent people from coming across Iraq's six borders, particularly from countries like Saudi Arabia and Syria who have been known to have been allowing these people from coming in. And until we get better cooperation from the neighbors and until we have better intelligence, unfortunately, I can't see this problem really eradicating itself. COSTELLO: Sajjan Gohel of the Asia-Pacific Foundation, thank you for joining us on DAYBREAK this morning.

The Bush administration is building on its ties with Pakistan. Some are calling it Islamabad's reward for cooperating with the U.S. in the war on terror.

Our senior international editor David Clinch joins us with this morning's big announcement.

How important is this?

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Well, it's very interesting. It's not, I suppose, totally unexpected. It's clear that Colin Powell visiting Pakistan by itself is a reward for the perceived cooperation and help from President Musharraf and others in Pakistan in the war on terror.

It's gone to a higher level now with this announcement that there will be a new alliance, described as one step short of a NATO alliance, which is remarkable for two reasons. One, it allows us greater military cooperation with Pakistan in a region that's volatile enough as itself.

And then, of course, secondly, Colin Powell himself, pointing out just after he made this announcement of the new alliance, making it clear that he is meeting with President Musharraf right now and will be pushing him for answers on the proliferation of nuclear weapons by a top Pakistani scientist who knew what and when, and specifically, did Musharraf himself know anything?

So a new alliance with a country which, not as a nation, but certainly the scientists involved in this nuclear proliferation which has been described by the U.S. as the worst case of proliferation in the world at the moment. So an interesting...

COSTELLO: Well let me ask you another -- a point about that. What will the United States give Pakistan specifically as a reward for its help in the war on terror?

CLINCH: Well one of the arguments Pakistan has always made about its inability to do what the United States wanted to do on the border with Afghanistan is that it doesn't have the equipment, it doesn't have the training and it doesn't have the military wherewithal to go into this area, which is very dangerous, and do what the U.S. wants it to do. The U.S. isn't allowed to send troops in there, so the compromise is they give them the equipment, they give them the training.

COSTELLO: As in weapons?

CLINCH: Right. Absolutely.

COSTELLO: As in big weapons?

CLINCH: Not clear what kind of weapons yet, but certainly we're talking about training and better equipment for a start.

COSTELLO: So what do you say to India then if you are...

CLINCH: Well India is already at that level of military cooperation with the United States and that certainly has not changed. So you would...

COSTELLO: But won't India be upset that America is giving Pakistan weaponry?

CLINCH: Possibly, but they will bite the bullet, I'm sure. And the United States, as Colin Powell was just in India, the United States has made it absolutely clear that India is and will be its primary ally in that region. But the war on terror wins out in the sense that the border with Afghanistan is a key, key region at the moment with the U.S. trying to push al Qaeda into Afghanistan.

Now one other area, we have reported on it this morning, Kosovo. We're keeping a very close eye on this. A story that sort of in the background for years and years, now NATO troops there. NATO pulling in reinforcements overnight tonight. Twenty-two people were killed there yesterday.

This started -- this is Muslims, ethnic Muslim-Albanians clashing with Serbs. The dream has been that Kosovo would be a multi-ethnic society, Serbs and Muslims living together. One Albanian -- one Kosovo-Albanian official saying this morning that that dream has now ended completely. NATO taking it very seriously and sending in reinforcements today.

COSTELLO: All right. David Clinch, many thanks to you.

CLINCH: OK.

COSTELLO: The political war to win the hearts and minds of American voters may get a little rest, at least from the Democratic front. John Kerry taking time off to vacation in Idaho. He and his wife, Teresa, plan to spend their time at their vacation home in Ketchum for the next five days.

But before arriving there, Senator Kerry did take aim at President Bush.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We need a commander-in-chief who honors and supports them for real. A commander-in-chief who repays their risks on the battlefield by providing them with the best weapons and protections as they go into battle. A commander-in-chief who recognizes their commitment and sacrifice and offers their families a decent life here at home.

(END VIDEO CLIP)

COSTELLO: On the Republican front, it was Vice President Dick Cheney on the attack. He says if it had been up to John Kerry, Saddam Hussein would still be in power and would almost certainly be in control of Kuwait as well.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: And the senator from Massachusetts has given us ample doubts about his judgement and the attitude he brings to bear on vital issues of national security. The American people will have a clear choice in the election of 2004.

(END VIDEO CLIP)

COSTELLO: The mud slinging has come early in this election.

Let's get some feedback from our friend, Jimmy Barrett, at WRVA Radio in Richmond, Virginia. He joins us live by phone.

Good morning -- Jimmy.

JIMMY BARRETT, WRVA RADIO MORNING SHOW: Good morning, Carol. How are you?

COSTELLO: I'm fine. Are we simulcast this morning?

BARRETT: Yes, live and local right here in Richmond, Virginia. You bet.

COSTELLO: Well hello, Virginians.

BARRETT: Well they appreciate the hello. How are things in Atlanta this morning?

COSTELLO: Warm.

BARRETT: Warm?

COSTELLO: Yes.

BARRETT: You dirty rotten -- anyway.

COSTELLO: Anywho (ph), let's talk about the election and how nasty it has become. A lot of interesting things happened after the bombing attack in Iraq yesterday.

BARRETT: Well I -- here's the -- you know I'm sure you have been cheering this statement that came out. And I did a little quiz this morning with our WRVA listeners in that I read the statement verbatim and then I said who said this, was it President Bush? No. Vice President Dick Cheney? No. Well we knew it was too diplomatic for Donald Rumsfeld, so I won't even go there.

COSTELLO: Well you are specifically talking about John Kerry's statement...

BARRETT: Yes.

COSTELLO: ... and it came out shortly after the bombing in Baghdad. And I want to read some for my viewers and your listeners.

BARRETT: Read on.

COSTELLO: He says "we must send a strong message to these cowards." I'm going to read it again. "We must send a strong message that these cowardly acts will only strengthen our resolve, not only to the enemies of peace in Iraq, but to our coalition allies, like the Spanish, who may be questioning whether the price is too high. That is why today I reiterate my call for America to convene an international summit to coordinate our efforts against terror and to strengthen and to grow our coalition in Iraq."

Now why do you suppose he said that?

BARRETT: Throw in a Texas accent and who is that? That's right out of -- page one out of -- out of the Bush campaign. Well...

COSTELLO: Well the interesting thing about this is because this is what John Kerry may be trying to do, Jimmy. By calling for an international summit, if President Bush goes ahead and does that, then John Kerry can take credit for it.

BARRETT: Well you know what, and that may well be the case, but here's the thing, we wanted an international effort in Iraq to begin with. We lobbied the United Nations. We lobbied all of our allies. We took everybody in to Iraq who was willing to go with us. Not to say that we should -- don't want to get the U.N. involved. I think we have shown signs we do want to get the U.N. involved in the election process. But there is nothing new about what Senator John Kerry has had to say.

Here's what I think has happened. I think he saw your latest CNN-Gallup Poll that says the majority of Americans think things are going pretty well in Iraq and that it was worth going there.

COSTELLO: Well support for the war in Iraq has been slipping, though. I mean he is just...

BARRETT: Well that may be. Support for the troops, however, has not. And I think Americans realize, even if they have some fundamental objections to the way the war has been carried out, that the Iraqi people are a whole lot better off than they were before.

COSTELLO: So do you think that this kind of thing would backfire on John Kerry?

BARRETT: Well here's what I think. I think we're going to hear a lot of statements. And do you know what, I'm going to try to be fair about this, I think there are going to be statements that are going to come out of the Bush camp that we are going to question as well. I think what this campaign really is going to need three things, a fact checker, a spin tester and flip-flopometer (ph) in order to be able to figure out what's going on during this presidential campaign.

COSTELLO: I don't think that will be possible because both sides need those things, don't you think?

BARRETT: Well that's what I'm saying. And you know what, there are plenty of -- there are plenty of places where you can check the facts. In fact there are Web sites devoted to checking the facts. And I urge everybody out there to do that. Make up your own mind about what's going on in this presidential campaign.

COSTELLO: Well beware of anything you read, especially on those Web sites, because you never know if what you are reading is correct. So I would say check out many, many sources, not just CNN, but other networks as well.

BARRETT: Yes, absolutely.

COSTELLO: What you find on the Internet, what you find in newspapers and come to your own conclusion.

BARRETT: And if you'd like to come to Richmond, Virginia and get my take on it, by all means, we welcome you.

COSTELLO: I'd love to do that.

Jimmy Barrett, many thanks to you. As always, very enjoyable.

DAYBREAK will return in just a moment. You stay right there.

(COMMERCIAL BREAK)

COSTELLO: 5:45 Eastern Time. The U.S. could be dragged into another major conflict, this one with China over Taiwan, which the U.S. has promised to defend. A lot depends on this weekend's presidential elections in Taiwan.

Our senior Asia correspondent Mike Chinoy explains the potentially explosive situation.

(BEGIN VIDEOTAPE)

MIKE CHINOY, CNN SENIOR ASIA CORRESPONDENT (voice-over): The campaign trail Taiwan style. On this island just 100 miles from Mainland China, a celebration of democracy and a political drama that's reverberating in capitals as far away as Beijing and Washington.

(on camera): In fact, diplomats, political analysts and security specialists say the outcome here could provoke a major new international crisis, one that, in the worst case, could lead to a war between China and the United States.

KENNETH LIEBERTHAL, UNIVERSITY OF MICHIGAN: Taiwan is probably the most dangerous situation in East Asia at this point. This is really the only place in East Asia where I think there is a real possibility that we could see military conflict in the next couple of years if things go badly.

CHINOY (voice-over): The roots of this explosive situation date back more than half a century when the Chinese Communists took power in Beijing but failed to capture Taiwan. For years, both sides have lived with an uneasy status quo. China claimed sovereignty over the island, but was willing to tolerate its separate existence as long as Taiwan didn't move towards formal independence.

Now, though, President Chen Shui-bian in a close reelection fight with opposition leader Lien Chan appears to be doing just that. While Lien has talked about reconciliation with Beijing, Chen has built his campaign around keeping Taiwan separate from China. He has asked voters to endorse a referendum authorizing a military build up to counter Beijing's forces. And he has called for a new constitution. All steps China sees as leading to the independence it has vowed to use force to prevent.

Before the 1996 presidential election here, Beijing fired missiles near Taiwan to deter pro-independent sentiment, prompting the Clinton administration to deploy aircraft carriers in the western Pacific. Now the signs are that Beijing is even more frustrated.

ANDREW YANG, TAIWAN POLITICAL ANALYST: This way is more dangerous than 1996 original crisis because if China decided to use force, it's not only exercises, it's not bluffing, it's not an intimidation, it's a decision to use force to damage Taiwan and make Taiwan to come to a negotiating table with China.

CHINOY: And the Bush administration, which is committed to defending Taiwan, could find itself dragged into a conflict it desperately wants to avoid.

MICHAEL SWAIRE, (UNINTELLIGIBLE) ENDOWMENT: If Chen Shui-bian is reelected and if he continues with his current course of action of wanting to consolidate what he says is Taiwan's sovereignty and independence, that could lead to, as I say, a real confrontation with China that is totally unnecessary and certainly not needed by the United States at this point.

(END VIDEOTAPE)

CHINOY: With voting set to begin on Saturday morning, the opinion polls say that the race to occupy the presidential palace behind me is, at this point, simply too close to call -- Carol.

COSTELLO: Mike Chinoy, reporting live for us this morning, many thanks to you.

Coming up next on DAYBREAK, some 'Front Page' news from around the country. And it is March Madness. Cinderella stories in the quest to be the best. We'll show you why all that glitters is gold.

(COMMERCIAL BREAK)

COSTELLO: All right, Chad, it's time to take a look at 'The Front Pages' across America.

CHAD MYERS, CNN METEOROLOGIST: Yes. COSTELLO: This first one is a moving image. Wait until you see it. This is from the "Rocky Mountain News" out of Denver, Colorado. You can see the little boy looking up at a helmet there. This is 6- year-old Alexander Wells. He is studying the memorial for his father, Stephen Wells. Had a service in his honor Tuesday at Fort Carson. His dad was shot down in a helicopter in Iraq.

I just want to read you a line from the article. It says "when the ceremony ended, Alexander Wells walked to his father's memorial and knelt. A few minutes later, the child, wearing pilot's wings on his black jacket and his father's dog tags around his neck, stood and looked down into his father's boots. He then straightened, put his shoulders back and his arms at his side."

That's just really sad. What a powerful picture.

MYERS: Yes.

COSTELLO: This one is from "The Charleston Gazette" out of West Virginia. And you can see that John Kerry was there. And the next time he goes there, they are going to work up a hunting trip -- a hunting trip for him -- Chad.

MYERS: Yes.

COSTELLO: Because you know John Kerry supposedly is this big hunter. And West Virginia, well there's a lot of hunters in West Virginia, and he wants to please the voters there because that is a very important state, another swing state.

MYERS: I'm sure there will be protests about that.

COSTELLO: I am sure there will be.

This is from "The Telegraph" out of New Hampshire. Look at that picture. Poor man shoveling all...

MYERS: Guess what, it was snowing.

COSTELLO: Five to 10 inches there.

MYERS: Yes.

COSTELLO: Ugly.

MYERS: Not more coming for them, though, I guess that's some good news.

(WEATHER REPORT)

COSTELLO: Two days until spring and just two minutes until we'll be back.

(COMMERCIAL BREAK)

COSTELLO: March Madness, that was a weird effect. I don't know if you heard that, but I did in my ear. So let me say it again, March Madness, the Big Dance, call it what you will. America gets caught up in the NCAA Basketball Tournament.

First round games begin today. Sixty-four teams, 32 games over the next two days across the country. And we're down to the Final Four millions. Two SEC teams, Kentucky and Duke are No. 1 seeds, along with Pac 10 Champion Stanford and the Hawks of St. Joseph's.

So hang on to your brackets, it's not just the Cinderella stories or the chance to cut down the net or that big shiny trophy.

As CNN's Jen Rogers reports, it's also about big green money.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): The sounds of March Madness. Fans cheering, buzzer beating shots, money changing hands. Yes, it's about more than college hoops, the Big Dance is also big business.

Take television rights, CBS has a $6 billion, 11-year contract with the NCAA. To recoup costs, CBS sells mega sponsorship deals to a handful of blue chip names. Cingular Wireless and General Motors are in the game and Coke has a monster $500 million multi-year agreement.

Just want to buy one ad, it won't come cheap either. A 30-second spot for the Final Four semi-final game costs $600,000. The same spot two nights later for the final 900,000 bucks.

DAVID CARTER, THE SPORTS BUSINESS GROUP: Advertisers love it beyond the fact that it delivers a great demographic of men 18 to 35. It also delivers a lot of consistency. It's really a two-and-a-half week miniseries.

ROGERS: Besides ad sales, there are ticket sales worth an estimated $35 million, legally. There is no official tally on how much scalpers make, but on eBay, there is plenty of supply if you are willing to pay.

BARRY REEVES, SPORTING NEWS MAGAZINE: A Final Four ticket is like gold. I mean people will start applying for Final Four tickets years in advance. Basically the only tougher ticket in probably the world is the Super Bowl ticket.

ROGERS: While getting a ticket might be tough, placing a bet isn't. The six-round tournament is by most estimates the biggest betting event of the year with billions wagered. Not only through casinos, but also those ubiquitous office pools.

With all this money changing hands, it seems the only party not seeing green, college basketball's amateur players. But while they don't get paid today, don't forget the starting salary in the NBA is closing in on $400,000 a year.

Jen Rogers, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

COSTELLO: Good morning to you. It is Thursday, March 18. From the CNN Global Headquarters in Atlanta, I'm Carol Costello. Thank you for joining us.

Let me bring you up to date now. New attacks against U.S. forces in Iraq. Mortar rounds kill one soldier and wound seven others near Baghdad's airport. And mortar fire also kills a Marine near the Syrian border.

President Bush defends the war in Iraq while thanking those who fought. The president speaks to troops at Fort Campbell, Kentucky today.

Secretary of State Colin Powell...

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





Presidential Elections; March Madness>


Aired March 18, 2004 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And across Kosovo, at least 10 people are dead in ethnic clashes across the country. U.N. officials call it the worst violence since the end of the Kosovo War in 1999.
We update our 'Top Stories' every 15 minutes. The next update comes your way at 5:45 Eastern.

The FBI now on the scene of that huge explosion at a hotel in Baghdad. A suspected suicide car bomb with more than 1,000 pounds of explosives destroyed a hotel, some nearby homes and a few other buildings. The U.S. military says 17 people are known dead and as many as 50 wounded.

Before all that, U.S. forces had raided 22 homes in Baghdad arresting 15 people and confiscating several computers that could yield clues about daily attacks. Also Wednesday, a mortar attack near Baghdad killed two U.S. soldiers with the 13th Core Support Command. Six soldiers were wounded.

Those bombers appear to be going after easier targets and that means civilians. About three-and-a-half months from now, the U.S. is to transfer day-to-day control of the country back into Iraqi hands.

Providing some insight for us now is terrorism expert Sajjan Gohel of the Asia-Pacific Foundation. He joins us live from London.

Thank you for joining us.

SAJJAN GOHEL, TERRORISM EXPERT, ASIA-PACIFIC FOUNDATION: My pleasure.

COSTELLO: First of all, let's talk about these soft targets. Should we expect many more?

GOHEL: Well, yes, I am afraid we have to expect that terrorists inside of Iraq are looking for soft targets where there are a possibility of mass casualty attacks that will create devastation and further undermine the security operators in Iraq. And their ultimate goal is to prevent Iraq from progressing.

COSTELLO: Is there any way to determine whether this is the work of Ansar al-Islam, you know that terrorist group based in northern Iraq, or is it someone with ties to al Qaeda responsible for this?

GOHEL: Well I think we have to look at the type of attack. It seemed to have been a very large, powerful vehicle attack packed with over 1,000 pounds of explosives. We have seen that terrorists around the world have used that type of tactic before. And I think definitely a powerful transnational terrorist outfit like Ansar al- Islam, which is affiliated to al Qaeda, or the groups linked to Abu Musab al-Zarqawi, perhaps the most wanted terrorist inside of Iraq, could have planned this type of attack. It definitely bears their hallmarks.

COSTELLO: I want to show our viewers a piece of videotape we just got in this morning. This is from an Arab television station, and they were doing a live shot with a woman you are going to see. And you can see the explosion going off behind her across the street. There you see it, and how powerful that was.

The location of this bombing, does it have any special meaning, and I mean that television stations were around and journalists were literally right next door at another hotel?

GOHEL: Well I think the fact that this hotel was not protected, it did not have adequate security, it wasn't in the green zone, it was -- it was an area where it was possible to prey to mass casualty attack. Obviously it was chosen well in advance.

I think this is the problem that we're facing that these types of individuals, these terrorists, they look for these types of targets. They are no longer going after ones they think will be difficult to attack. They want to go for the devastating, spectacular attack.

The fact that this hotel was completely flattened showed how deliberate and menacing these people are. And this is just part of the problem that we are now facing that they are determined to drive out any element inside Iraq that contribute to its future well being.

We have seen the U.N. has been attacked, the Red Cross, the Italian troops in Nasiriya, Kurds in the north, Shi'as in a -- in a celebration. We are looking at all kinds of attacks. They are determined, these terrorists, to try and isolate the U.S. in any way possible.

COSTELLO: Walter Rodgers spoke to us a short time ago and he said many Iraqis are blaming Americans for this latest attacks and others. Is there any way to change minds?

GOHEL: The biggest problem that we're facing in Iraq is a lack of quality intelligence as to where these terror cells are operating, what they are planning to do and we need to improve our local intelligence. And, unfortunately, the best local intelligence is to get cooperation from the Iraqis, many of whom are frightened in helping because they may fear that their own lives are in danger.

But the only way we can directly challenge this is to find out where these terror cells are planning future attacks. And also prevent people from coming across Iraq's six borders, particularly from countries like Saudi Arabia and Syria who have been known to have been allowing these people from coming in. And until we get better cooperation from the neighbors and until we have better intelligence, unfortunately, I can't see this problem really eradicating itself. COSTELLO: Sajjan Gohel of the Asia-Pacific Foundation, thank you for joining us on DAYBREAK this morning.

The Bush administration is building on its ties with Pakistan. Some are calling it Islamabad's reward for cooperating with the U.S. in the war on terror.

Our senior international editor David Clinch joins us with this morning's big announcement.

How important is this?

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Well, it's very interesting. It's not, I suppose, totally unexpected. It's clear that Colin Powell visiting Pakistan by itself is a reward for the perceived cooperation and help from President Musharraf and others in Pakistan in the war on terror.

It's gone to a higher level now with this announcement that there will be a new alliance, described as one step short of a NATO alliance, which is remarkable for two reasons. One, it allows us greater military cooperation with Pakistan in a region that's volatile enough as itself.

And then, of course, secondly, Colin Powell himself, pointing out just after he made this announcement of the new alliance, making it clear that he is meeting with President Musharraf right now and will be pushing him for answers on the proliferation of nuclear weapons by a top Pakistani scientist who knew what and when, and specifically, did Musharraf himself know anything?

So a new alliance with a country which, not as a nation, but certainly the scientists involved in this nuclear proliferation which has been described by the U.S. as the worst case of proliferation in the world at the moment. So an interesting...

COSTELLO: Well let me ask you another -- a point about that. What will the United States give Pakistan specifically as a reward for its help in the war on terror?

CLINCH: Well one of the arguments Pakistan has always made about its inability to do what the United States wanted to do on the border with Afghanistan is that it doesn't have the equipment, it doesn't have the training and it doesn't have the military wherewithal to go into this area, which is very dangerous, and do what the U.S. wants it to do. The U.S. isn't allowed to send troops in there, so the compromise is they give them the equipment, they give them the training.

COSTELLO: As in weapons?

CLINCH: Right. Absolutely.

COSTELLO: As in big weapons?

CLINCH: Not clear what kind of weapons yet, but certainly we're talking about training and better equipment for a start.

COSTELLO: So what do you say to India then if you are...

CLINCH: Well India is already at that level of military cooperation with the United States and that certainly has not changed. So you would...

COSTELLO: But won't India be upset that America is giving Pakistan weaponry?

CLINCH: Possibly, but they will bite the bullet, I'm sure. And the United States, as Colin Powell was just in India, the United States has made it absolutely clear that India is and will be its primary ally in that region. But the war on terror wins out in the sense that the border with Afghanistan is a key, key region at the moment with the U.S. trying to push al Qaeda into Afghanistan.

Now one other area, we have reported on it this morning, Kosovo. We're keeping a very close eye on this. A story that sort of in the background for years and years, now NATO troops there. NATO pulling in reinforcements overnight tonight. Twenty-two people were killed there yesterday.

This started -- this is Muslims, ethnic Muslim-Albanians clashing with Serbs. The dream has been that Kosovo would be a multi-ethnic society, Serbs and Muslims living together. One Albanian -- one Kosovo-Albanian official saying this morning that that dream has now ended completely. NATO taking it very seriously and sending in reinforcements today.

COSTELLO: All right. David Clinch, many thanks to you.

CLINCH: OK.

COSTELLO: The political war to win the hearts and minds of American voters may get a little rest, at least from the Democratic front. John Kerry taking time off to vacation in Idaho. He and his wife, Teresa, plan to spend their time at their vacation home in Ketchum for the next five days.

But before arriving there, Senator Kerry did take aim at President Bush.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We need a commander-in-chief who honors and supports them for real. A commander-in-chief who repays their risks on the battlefield by providing them with the best weapons and protections as they go into battle. A commander-in-chief who recognizes their commitment and sacrifice and offers their families a decent life here at home.

(END VIDEO CLIP)

COSTELLO: On the Republican front, it was Vice President Dick Cheney on the attack. He says if it had been up to John Kerry, Saddam Hussein would still be in power and would almost certainly be in control of Kuwait as well.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: And the senator from Massachusetts has given us ample doubts about his judgement and the attitude he brings to bear on vital issues of national security. The American people will have a clear choice in the election of 2004.

(END VIDEO CLIP)

COSTELLO: The mud slinging has come early in this election.

Let's get some feedback from our friend, Jimmy Barrett, at WRVA Radio in Richmond, Virginia. He joins us live by phone.

Good morning -- Jimmy.

JIMMY BARRETT, WRVA RADIO MORNING SHOW: Good morning, Carol. How are you?

COSTELLO: I'm fine. Are we simulcast this morning?

BARRETT: Yes, live and local right here in Richmond, Virginia. You bet.

COSTELLO: Well hello, Virginians.

BARRETT: Well they appreciate the hello. How are things in Atlanta this morning?

COSTELLO: Warm.

BARRETT: Warm?

COSTELLO: Yes.

BARRETT: You dirty rotten -- anyway.

COSTELLO: Anywho (ph), let's talk about the election and how nasty it has become. A lot of interesting things happened after the bombing attack in Iraq yesterday.

BARRETT: Well I -- here's the -- you know I'm sure you have been cheering this statement that came out. And I did a little quiz this morning with our WRVA listeners in that I read the statement verbatim and then I said who said this, was it President Bush? No. Vice President Dick Cheney? No. Well we knew it was too diplomatic for Donald Rumsfeld, so I won't even go there.

COSTELLO: Well you are specifically talking about John Kerry's statement...

BARRETT: Yes.

COSTELLO: ... and it came out shortly after the bombing in Baghdad. And I want to read some for my viewers and your listeners.

BARRETT: Read on.

COSTELLO: He says "we must send a strong message to these cowards." I'm going to read it again. "We must send a strong message that these cowardly acts will only strengthen our resolve, not only to the enemies of peace in Iraq, but to our coalition allies, like the Spanish, who may be questioning whether the price is too high. That is why today I reiterate my call for America to convene an international summit to coordinate our efforts against terror and to strengthen and to grow our coalition in Iraq."

Now why do you suppose he said that?

BARRETT: Throw in a Texas accent and who is that? That's right out of -- page one out of -- out of the Bush campaign. Well...

COSTELLO: Well the interesting thing about this is because this is what John Kerry may be trying to do, Jimmy. By calling for an international summit, if President Bush goes ahead and does that, then John Kerry can take credit for it.

BARRETT: Well you know what, and that may well be the case, but here's the thing, we wanted an international effort in Iraq to begin with. We lobbied the United Nations. We lobbied all of our allies. We took everybody in to Iraq who was willing to go with us. Not to say that we should -- don't want to get the U.N. involved. I think we have shown signs we do want to get the U.N. involved in the election process. But there is nothing new about what Senator John Kerry has had to say.

Here's what I think has happened. I think he saw your latest CNN-Gallup Poll that says the majority of Americans think things are going pretty well in Iraq and that it was worth going there.

COSTELLO: Well support for the war in Iraq has been slipping, though. I mean he is just...

BARRETT: Well that may be. Support for the troops, however, has not. And I think Americans realize, even if they have some fundamental objections to the way the war has been carried out, that the Iraqi people are a whole lot better off than they were before.

COSTELLO: So do you think that this kind of thing would backfire on John Kerry?

BARRETT: Well here's what I think. I think we're going to hear a lot of statements. And do you know what, I'm going to try to be fair about this, I think there are going to be statements that are going to come out of the Bush camp that we are going to question as well. I think what this campaign really is going to need three things, a fact checker, a spin tester and flip-flopometer (ph) in order to be able to figure out what's going on during this presidential campaign.

COSTELLO: I don't think that will be possible because both sides need those things, don't you think?

BARRETT: Well that's what I'm saying. And you know what, there are plenty of -- there are plenty of places where you can check the facts. In fact there are Web sites devoted to checking the facts. And I urge everybody out there to do that. Make up your own mind about what's going on in this presidential campaign.

COSTELLO: Well beware of anything you read, especially on those Web sites, because you never know if what you are reading is correct. So I would say check out many, many sources, not just CNN, but other networks as well.

BARRETT: Yes, absolutely.

COSTELLO: What you find on the Internet, what you find in newspapers and come to your own conclusion.

BARRETT: And if you'd like to come to Richmond, Virginia and get my take on it, by all means, we welcome you.

COSTELLO: I'd love to do that.

Jimmy Barrett, many thanks to you. As always, very enjoyable.

DAYBREAK will return in just a moment. You stay right there.

(COMMERCIAL BREAK)

COSTELLO: 5:45 Eastern Time. The U.S. could be dragged into another major conflict, this one with China over Taiwan, which the U.S. has promised to defend. A lot depends on this weekend's presidential elections in Taiwan.

Our senior Asia correspondent Mike Chinoy explains the potentially explosive situation.

(BEGIN VIDEOTAPE)

MIKE CHINOY, CNN SENIOR ASIA CORRESPONDENT (voice-over): The campaign trail Taiwan style. On this island just 100 miles from Mainland China, a celebration of democracy and a political drama that's reverberating in capitals as far away as Beijing and Washington.

(on camera): In fact, diplomats, political analysts and security specialists say the outcome here could provoke a major new international crisis, one that, in the worst case, could lead to a war between China and the United States.

KENNETH LIEBERTHAL, UNIVERSITY OF MICHIGAN: Taiwan is probably the most dangerous situation in East Asia at this point. This is really the only place in East Asia where I think there is a real possibility that we could see military conflict in the next couple of years if things go badly.

CHINOY (voice-over): The roots of this explosive situation date back more than half a century when the Chinese Communists took power in Beijing but failed to capture Taiwan. For years, both sides have lived with an uneasy status quo. China claimed sovereignty over the island, but was willing to tolerate its separate existence as long as Taiwan didn't move towards formal independence.

Now, though, President Chen Shui-bian in a close reelection fight with opposition leader Lien Chan appears to be doing just that. While Lien has talked about reconciliation with Beijing, Chen has built his campaign around keeping Taiwan separate from China. He has asked voters to endorse a referendum authorizing a military build up to counter Beijing's forces. And he has called for a new constitution. All steps China sees as leading to the independence it has vowed to use force to prevent.

Before the 1996 presidential election here, Beijing fired missiles near Taiwan to deter pro-independent sentiment, prompting the Clinton administration to deploy aircraft carriers in the western Pacific. Now the signs are that Beijing is even more frustrated.

ANDREW YANG, TAIWAN POLITICAL ANALYST: This way is more dangerous than 1996 original crisis because if China decided to use force, it's not only exercises, it's not bluffing, it's not an intimidation, it's a decision to use force to damage Taiwan and make Taiwan to come to a negotiating table with China.

CHINOY: And the Bush administration, which is committed to defending Taiwan, could find itself dragged into a conflict it desperately wants to avoid.

MICHAEL SWAIRE, (UNINTELLIGIBLE) ENDOWMENT: If Chen Shui-bian is reelected and if he continues with his current course of action of wanting to consolidate what he says is Taiwan's sovereignty and independence, that could lead to, as I say, a real confrontation with China that is totally unnecessary and certainly not needed by the United States at this point.

(END VIDEOTAPE)

CHINOY: With voting set to begin on Saturday morning, the opinion polls say that the race to occupy the presidential palace behind me is, at this point, simply too close to call -- Carol.

COSTELLO: Mike Chinoy, reporting live for us this morning, many thanks to you.

Coming up next on DAYBREAK, some 'Front Page' news from around the country. And it is March Madness. Cinderella stories in the quest to be the best. We'll show you why all that glitters is gold.

(COMMERCIAL BREAK)

COSTELLO: All right, Chad, it's time to take a look at 'The Front Pages' across America.

CHAD MYERS, CNN METEOROLOGIST: Yes. COSTELLO: This first one is a moving image. Wait until you see it. This is from the "Rocky Mountain News" out of Denver, Colorado. You can see the little boy looking up at a helmet there. This is 6- year-old Alexander Wells. He is studying the memorial for his father, Stephen Wells. Had a service in his honor Tuesday at Fort Carson. His dad was shot down in a helicopter in Iraq.

I just want to read you a line from the article. It says "when the ceremony ended, Alexander Wells walked to his father's memorial and knelt. A few minutes later, the child, wearing pilot's wings on his black jacket and his father's dog tags around his neck, stood and looked down into his father's boots. He then straightened, put his shoulders back and his arms at his side."

That's just really sad. What a powerful picture.

MYERS: Yes.

COSTELLO: This one is from "The Charleston Gazette" out of West Virginia. And you can see that John Kerry was there. And the next time he goes there, they are going to work up a hunting trip -- a hunting trip for him -- Chad.

MYERS: Yes.

COSTELLO: Because you know John Kerry supposedly is this big hunter. And West Virginia, well there's a lot of hunters in West Virginia, and he wants to please the voters there because that is a very important state, another swing state.

MYERS: I'm sure there will be protests about that.

COSTELLO: I am sure there will be.

This is from "The Telegraph" out of New Hampshire. Look at that picture. Poor man shoveling all...

MYERS: Guess what, it was snowing.

COSTELLO: Five to 10 inches there.

MYERS: Yes.

COSTELLO: Ugly.

MYERS: Not more coming for them, though, I guess that's some good news.

(WEATHER REPORT)

COSTELLO: Two days until spring and just two minutes until we'll be back.

(COMMERCIAL BREAK)

COSTELLO: March Madness, that was a weird effect. I don't know if you heard that, but I did in my ear. So let me say it again, March Madness, the Big Dance, call it what you will. America gets caught up in the NCAA Basketball Tournament.

First round games begin today. Sixty-four teams, 32 games over the next two days across the country. And we're down to the Final Four millions. Two SEC teams, Kentucky and Duke are No. 1 seeds, along with Pac 10 Champion Stanford and the Hawks of St. Joseph's.

So hang on to your brackets, it's not just the Cinderella stories or the chance to cut down the net or that big shiny trophy.

As CNN's Jen Rogers reports, it's also about big green money.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): The sounds of March Madness. Fans cheering, buzzer beating shots, money changing hands. Yes, it's about more than college hoops, the Big Dance is also big business.

Take television rights, CBS has a $6 billion, 11-year contract with the NCAA. To recoup costs, CBS sells mega sponsorship deals to a handful of blue chip names. Cingular Wireless and General Motors are in the game and Coke has a monster $500 million multi-year agreement.

Just want to buy one ad, it won't come cheap either. A 30-second spot for the Final Four semi-final game costs $600,000. The same spot two nights later for the final 900,000 bucks.

DAVID CARTER, THE SPORTS BUSINESS GROUP: Advertisers love it beyond the fact that it delivers a great demographic of men 18 to 35. It also delivers a lot of consistency. It's really a two-and-a-half week miniseries.

ROGERS: Besides ad sales, there are ticket sales worth an estimated $35 million, legally. There is no official tally on how much scalpers make, but on eBay, there is plenty of supply if you are willing to pay.

BARRY REEVES, SPORTING NEWS MAGAZINE: A Final Four ticket is like gold. I mean people will start applying for Final Four tickets years in advance. Basically the only tougher ticket in probably the world is the Super Bowl ticket.

ROGERS: While getting a ticket might be tough, placing a bet isn't. The six-round tournament is by most estimates the biggest betting event of the year with billions wagered. Not only through casinos, but also those ubiquitous office pools.

With all this money changing hands, it seems the only party not seeing green, college basketball's amateur players. But while they don't get paid today, don't forget the starting salary in the NBA is closing in on $400,000 a year.

Jen Rogers, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

COSTELLO: Good morning to you. It is Thursday, March 18. From the CNN Global Headquarters in Atlanta, I'm Carol Costello. Thank you for joining us.

Let me bring you up to date now. New attacks against U.S. forces in Iraq. Mortar rounds kill one soldier and wound seven others near Baghdad's airport. And mortar fire also kills a Marine near the Syrian border.

President Bush defends the war in Iraq while thanking those who fought. The president speaks to troops at Fort Campbell, Kentucky today.

Secretary of State Colin Powell...

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





Presidential Elections; March Madness>