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CNN Live At Daybreak

Spain Struggles to Overcome Own 9/11; 9/11 Commission Hearings

Aired March 24, 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: Good morning to you.
It is Wednesday, March 24th.

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

Thank you for waking up with us.

Let me bring you up to date.

His new book accuses President Bush of botching the war on terror. Today, former counter-terrorism czar Richard Clarke will air his complaints at a public hearing of the 9/11 Commission.

A military convoy comes under attack in Fallujah, just west of Baghdad. Two coalition soldiers are wounded. Their nationalities unclear. There are reports that at least two Iraqis were killed in return fire.

A specific threat shuts the U.S. Embassy in the United Arab Emirates. Reaction to the killing of Sheikh Ahmed Yassin may have led to the closing.

The European Union has just hit Microsoft with a record $613 million fine for anti-trust abuse and orders changes in how the software giant operates. Microsoft says it will appeal the decision.

In Mexico, British divers are expected to swim through a flooded cave today to reach six of their countrymen. The explorers have been trapped in caverns for a week now.

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

Something is happening live in Spain right now. We want to bring you to Madrid, as Spain struggles to overcome its own 9/11. A memorial service now under way for victims of this month's terrorist train bombings. As I said, you're looking at live pictures from Madrid. World leaders have joined Spain's royal family and the nation for this ceremony honoring the 190 people killed in the March 11th strikes.

Our Elise Labott is there, too. She has accompanied Secretary of State Colin Powell and his aides to Madrid.

She joins us by phone to tell us what's happening now -- good morning, Elise. ELISE LABOTT, CNN PRODUCER: Good morning, Carol.

Well, naturally the main reason Secretary of State Powell is here in Madrid is to lend sympathy and support to the Spanish government and the Spanish people during this tragic time and to show solidarity with Europe in general. You know, the Madrid bombing really was the 9/11 of Europe in the eyes of the U.S.

But Powell obviously has an opportunity to speak with a lot of world leaders on the sidelines, just greeting them at this memorial service that he'll be attending. Right now he's meeting with Prime Minister Asnar and later he'll be meeting with the incoming prime minister, Zapatero.

The message Secretary Powell will be delivering here is the U.S. and Spain have an excellent relationship, strong cooperation in a lot of areas, Carol. And Powell is going to say let's keep that going.

You know, incoming Prime Minister Zapatero had a lot of derogatory comments about the U.S. during his campaign. But U.S. officials are now looking to start fresh. They say they have a lot of good relationships with people who they expect to be in his incoming government. So they want to listen to his agenda and get off to a good start. And obviously that's what Prime Minister Tony Blair will be doing when he meets with Zapatero today.

COSTELLO: Right. We just saw Secretary of State Colin Powell entering the building there. And I wanted to talk more about the repairing of the relationship between Spain and the United States. Before Donald Rumsfeld testified before the 9/11 Commission, he reached out and expressed sympathy to the people of Spain, which I found really quite interesting.

Will Spain pull its 1,300 troops from Iraq and what can the secretary of state say to Spain to persuade the new leader to keep the troops there?

LABOTT: Well, first of all, Carol, Secretary Powell is going to say Spain has been working very closely with the U.S. in a lot of areas -- the war against terrorism, a lot of intelligence sharing, law enforcement cooperation. The U.S. has been cooperating with Europe in general on these issues. So in the wake of the bombings, the U.S. wants to see how Europe will deal with this terrorist threat, in terms of cracking down on financing and things like that.

And in Afghanistan, Spain has a lot of -- committed a lot of troops. Some reports that the prime minister plans to increase additional troops to offset any withdrawal from Iraq. We'll obviously have to see about that.

But on Iraq, Secretary Powell will emphasize what the international community is doing to rebuild Iraq is very important and that everyone needs to stay the course. Obviously, Tony Blair is going to be saying that, too.

Zapatero has threatened to withdraw Spanish troops without a U.N. mandate, unless they fall under U.N. command when the U.S. hands over sovereignty to the Iraqis in June. Powell will address a possible U.N. resolution, trying to, giving more power to the U.N. and we hear that the U.S. is likely to seek such a new resolution. Right now they're just talking to ideas.

But Powell aides caution this meeting today is really not a very deep exchange. The new government isn't taking office until next month. The U.S. wants to let it get its feet on the ground and aides say really today is about to reflect what happened to Spain, continue the relationship with Prime Minister Asnar and starting a new one with the incoming government -- Carol.

COSTELLO: Well, we'll see what happens...

LABOTT: The emphasis on the relationship...

COSTELLO: Elise Labott reporting live from Madrid.

The pictures you're looking at, by the way, King Juan Carlos greeting people as they walk into a midday mass at the Almudena Cathedral.

We'll have more live from Madrid as events warrant.

More high level Bush and Clinton officials will try explaining today why the terrorist attacks were not prevented. George Tenet, CIA chief under both administrations, will kick off the testimony before the 9/11 Commission today. He'll be followed by Clinton's national security advisor, Samuel Berger. Then we will hear from former counter-terrorism chief Richard Clarke. And, finally, Deputy Secretary of State Richard Armitage will testify before the Commission.

Of course, that testimony could get really interesting, particularly because former anti-terrorism director Richard Clarke has had a lot to say lately about the Bush administration's handling of the terrorism threat.

Our Bill Prasad is following the hearings.

(BEGIN VIDEOTAPE)

BILL PRASAD, CNN CORRESPONDENT (voice-over): They watch and wear their losses -- photos of loved ones killed on 9/11.

UNIDENTIFIED FEMALE: My concern is, you know, security and what happened to security on that day.

PRASAD: The bipartisan 9/11 Commission grills representatives from past and present administrations, learning that at least three times since 1998, the U.S. came close to capturing or killing Osama bin Laden.

MADELEINE ALBRIGHT, FORMER SECRETARY OF STATE: We occasionally learned where bin Laden had been or where he might be going or where someone who appeared to resemble him might be. It was truly maddening.

PRASAD: Numerous times, the Commission heard about close calls due to vague intelligence.

BOB KERREY, IDI COMMISSION MEMBER: I keep hearing the excuse we didn't have actionable intelligence. Well, what the hell does that say to al Qaeda?

PRASAD: The Commission wanted to know if 9/11 would have happened without bin Laden.

DONALD RUMSFELD, SECRETARY OF DEFENSE: Even if bin Laden had been captured or killed in the weeks before September 11, no one I know believes that it would necessarily have prevented September 11.

PRASAD: Bush administration officials testified that the White House needed to formulate a plan to fight terrorism before taking action.

KERREY: Why in god's name have I got to wait eight months to get a plan?

PRASAD: A new book suggests Mr. Bush put al Qaeda on the back burner because he was obsessed with Iraq, prompting this defense.

PAUL WOLFOWITZ, DEPUTY DEFENSE SECRETARY: I've never been dismissive of al Qaeda. And I think precisely because I think terrorism is such a serious problem.

PRASAD (on camera): Today, the author of that book, former White House terrorism advisor Richard Clarke, will be appearing. His testimony could be the most interesting and most controversial of these hearings.

Bill Prasad, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And, of course, we will have live hourly coverage of today's Commission hearings, starting at 9:00 a.m. Eastern.

It will be an interesting and painful day in Eagle, Colorado in a courtroom there. The young woman who is accusing basketball star Kobe Bryant of rape will face questions about her sexual history.

CNN's Adrian Baschue is in Eagle this morning.

He joins us live now -- good morning.

ADRIAN BASCHUE, CNN CORRESPONDENT: Good morning to you, Carol.

It's been exactly eight months and three weeks since Kobe Bryant last saw his accuser in the Cordillera hotel room. And it's an interesting case to watch, not just because of Kobe Bryant's celebrity factor, but also because the tables are turned. Colorado legal insiders say that usually the prosecution comes stacked with its deck of cards with the evidence. But here, the defense has filed a mountain of motions, seeking to get their own version of the facts in regarding her sexual past and mental health records, most specifically claiming that she had sex with multiple partners within the 72 hours before and after the alleged rape by Bryant took place.

Now, Kobe Bryant will be in court to see his accuser testify, although he plans to be back in L.A. tonight to face the Sacramento Kings.

We spoke with legal insiders on this case and victim advocates regarding the pivotal nature of today's hearing.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think if we see evidence that this young lady may have had sex with another man after Kobe, but before she went to the cops, then there's no way Kobe Bryant can lose this trial.

UNIDENTIFIED FEMALE: In this case, we make the victim respond to her sexual history. We don't even make Kobe respond to his sexual history.

(END VIDEO CLIP)

BASCHUE: ... has received numerous death threats in this case. There will be an increased police presence outside the courthouse, with security officials having to escort her into the courtroom -- Carol.

COSTELLO: Adrian Baschue reporting live from Eagle, Colorado this morning.

A Denver furniture dealer hopes to cash in on the Kobe Bryant case. Wait until you hear this one. Steve Farland, owner of The Chairman, is selling beds, chairs and other furniture from the lodge and spa near Vail, where Kobe Bryant stayed. There's no guarantee anyone of the furniture came from Room 35, where the alleged sexual assault took place. But Farland says could be and he's looking to make a lot of money from this.

To the forecast center now and Chad.

CHAD MYERS, CNN CORRESPONDENT: I've stayed at that lodge and spa at Cordillera, in fact.

COSTELLO: It's beautiful, isn't it?

MYERS: It is amazing.

COSTELLO: Yes.

MYERS: Yes. The first place I ever took my wife. That's pretty -- it's pretty outstanding stuff.

(WEATHER REPORT)

MYERS: Do you know what time it is, Carol?

COSTELLO: Hopefully it's time for something happy to happen.

MYERS: It is time for the DAYBREAK mug.

COSTELLO: Oh, yes.

MYERS: Can you see the background I have behind me?

COSTELLO: I do, indeed. Oh, that's beautiful.

MYERS: Sent to us by a viewer. It's not going to stop flipping, but that's OK. Sent to us Anna Holmes (ph). We're going to have to use that over and over and over, because she said we can use it for free.

COSTELLO: Really?

MYERS: Yes. And those are the only kind of graphics we have here, free ones.

COSTELLO: Well, I believe that she sent that because you didn't have a DAYBREAK coffee quiz graphic yesterday.

MYERS: That's right. I know.

COSTELLO: And she wanted to help you out.

MYERS: She did.

COSTELLO: She did, indeed.

MYERS: And we'll have more on that -- I'll have it up at 6:50 when we ask the next questions, too.

COSTELLO: Absolutely.

Are we asking the Tuesday questions now, today's winner?

MYERS: We are giving away the winner. Yes.

COSTELLO: We'll, let's give away our mug today then.

MYERS: All right. Here we go. The two questions from yesterday, in the most recent Gallup poll, this was yesterday, what are people blaming the bad investment climate for right now? The answer to that one was actually high energy costs, the high cost of gasoline, the high price of your therm bill at home if you have gas, natural gas, look at your therms. They're ridiculous this year. And the northern New Jersey seaport is the first in the country to receive one of these. What is it? That was that big radiation detector. In case any cargo comes in with radiation in it, this little guy, actually, big guy, will detect that.

And the winner is, drum roll, please -- Ryan McKeen from Enfield, Connecticut. Today, we will be sending you the coffee mug when we get it.

COSTELLO: You know, I left my CNN coffee mug in the newsroom and someone stole it.

MYERS: There's been a rash of that around.

COSTELLO: Well, you know, that's how popular these cups are, so you people are lucky out there.

MYERS: Well, do you have a DAYBREAK one already?

COSTELLO: I'm not telling.

Thank you, Chad.

MYERS: OK.

COSTELLO: Do fill-ups have you fed up these days? Gas prices are hitting record prices. What's a driver to do? We've got information that could save you money.

And cracking down on college kids for using their computers for something other than homework.

Plus, cut down carbs without cutting out beer. Hmmm, it can be done.

This is DAYBREAK for March 24th.

COMMERCIAL

COSTELLO: 6:16 Eastern time.

Time to take a quick look now at the top stories in our DAYBREAK early briefing.

Former White House terrorism advisor Richard Clarke testifies before the 9/11 Commission today. His new book blasts President Bush's leadership in fighting terrorism.

A government report says the Medicare system will go broke in the year 2019 if no changes are made to the current system. That's 11 years sooner than previously thought.

And we now know why legendary singer Aretha Franklin is in the hospital. Her doctor says she had an allergic reaction to antibiotics but she is getting better. The soul singer turns 62 tomorrow.

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

You have been complaining loudly about gas prices for some time and now officially you have good reason. Gas prices have hit an history high. The average price of a gallon of unleaded regular gas is $1.74.

Live to Washington and Mantill Williams with AAA.

Good morning to you.

MANTILL WILLIAMS, AAA: Good morning, Carol.

How are you doing?

COSTELLO: OK.

While we talk, we're going to put up a graphic showing the highest and lowest gas prices in the nation. So let's put that up right now.

WILLIAMS: OK.

COSTELLO: My goodness, California, $2.14. In Hawaii, a gallon of gas will cost you $2.09.

Should we be outraged?

WILLIAMS: Well, I think some motorists are and that's because we've had these high prices for at least, almost going on two months. And last year the reason we had prices this high is because we were ramping up to war with Iraq. Now, that's not the situation. It's a totally different scenario now. Now it's really based on the high price of crude oil. We have low inventories. We also have rising demand. But we still have those lingering problems. We have inefficient refining capacity and we have a myriad of regulations. Like we have 15 different fuel rules throughout the country. So all those things are kind of working together right now to drive up prices.

COSTELLO: I, well, you know, they all may be good reasons, but I don't think that will make consumers any happier.

Will prices go even higher?

WILLIAMS: Well, Carol, that we don't know. It's not -- it's sort of like predicting what's going to happen in the stock market. But I can just tell you, historically we found that as we hit the summer driving season, particularly when we get in the middle of the summer driving season when we have really high demand, gas prices usually go up. And gas prices usually also get a bump up when we make that transfer from the winter grade fuels to the summer grade fuels. And that's the type of fuels that makes it -- that are a little bit more environmentally friendly.

COSTELLO: Gas prices have become a political hot potato now, with President Bush and John Kerry tossing that hot potato around. But let me ask you this. Has any investigation by any politician ever resulted in lower gas prices?

WILLIAMS: Well, Carol, we've had a couple of investigations the last couple of years. They were investigating whether there was some type of collusion or some type of illegal activity by the people who sell gasoline on the retail level. But they haven't found any type of wrongdoing or any type of illegal activity. So the bottom line is people are going to sell gasoline for the highest price they can get it.

So just keep in mind when you're, as a motorist, just shop with your steering wheel. Try to go for the lowest price, because gasoline is gasoline. They all get it from the same place.

COSTELLO: I know but they all seem to raise their prices at the same time.

So is there anything a consumer can really do?

WILLIAMS: Well, really, the only thing you can do is compare prices. Also, make sure your vehicle is well maintained. Carol, I'm imagining this is probably something you do every week, is you need to check your inflation pressure on your tires. I'm sure you do that every week.

COSTELLO: Oh, yes.

WILLIAMS: And then also this might be a time to use the most fuel efficient car. You might want to park that SUV. Also, talk to your employer. Maybe there are some telecommuting opportunities. This might be a good time to bring that up. And then also it's a good time to use public transit when you can.

COSTELLO: All right, Mantill Williams, many thanks, live from D.C. this morning.

And before we get completely off the topic, we'd like to show you a list of the cars that do have the best gas mileage. These figures are based on 15,000 miles a year of driving and $1.71 per gallon gas prices. And you can see what's best. Honda Insight, a five speed, you'll spend $405 a year on gas. Toyota Corolla, a five speed, you'll spend $705 a year. Jeep Liberty, a five speed, you'll spend $1,155 a year on gas. And a Ford Ranger pickup, also a five speed, $959 a year on gas.

This comes from fueleconomy.gov if you want the -- if you want more information on other brands of cars. But as you can see, we pay an awful lot of money for gas every year.

Time to talk more money in our business buzz this morning.

The European Union cracks down on Microsoft.

Stacey Tisdale has more live from the NASDAQ market site.

Wow, what a fine.

STACEY TISDALE, CNN CORRESPONDENT: It is incredible, Carol. We're just starting to see all the details of this ruling, which came out about an hour ago. Folks, what happened is European regulators have slapped a record find on Microsoft, more than $600 million, basically saying that Microsoft's a bully and it's abusing its monopoly power in the market. This fine, Carol, actually could have been a lot more than this, as much as $3 billion. But there are bigger problems for Microsoft when you like at the conditions.

First, the company has 120 days to supply technical information to rivals. That allows the competitors to create products that are compatible with Windows.

In addition, Microsoft has to offer PC makers a version of Windows that does not carry its Media Player. And under this, it has 90 days to do that.

As for what's next, Microsoft really is going to appeal this. They've already said that. But that could take a couple of years. And interestingly, some competitors are hoping that this makes the United States and countries like Japan really take another look at what Microsoft's been doing and perhaps levy some anti-trust fines of their own.

Well, here in the States, the government is cracking down on college students when it comes to downloading music. I'm sorry, the recording industry. The recording industry is suing students at 21 schools for copyright infringement. This is the first time they've really gone after college networks and the swappers at 21 pretty prestigious schools, including New York University, Stanford and Marquette. So we'll see how that plays out.

Now back over to you.

COSTELLO: All right, Stacey Tisdale reporting live from New York this morning.

Coming up, the carb craze means some of you are cutting back on your favorite beer. But our dietitian, Lisa Drayer, explains how you could have your beer and drink it, too.

And our DAYBREAK Photo of the Day. Take a look. What is it? We'll have the answer for you, coming up.

COMMERCIAL

COSTELLO: We got an e-mail from someone guessing, Chad.

MYERS: Oh yes?

COSTELLO: He guessed they are tulips in Holland.

MYERS: Close.

COSTELLO: But no cigar.

MYERS: Only about 7,000 miles away.

COSTELLO: What is it?

MYERS: The Carlsbad flower fields out there in the hills of California. You can really even see the ocean from there. Fifty acres of flowers, Carol. I was just looking it up on the Internet, do a Yahoo! search, type in Carlsbad flower fields. A nice shot there, obviously.

COSTELLO: It's beautiful.

MYERS: Rows and rows and rows. They cut them, they plant them, they use the seeds and all that other kind of stuff.

COSTELLO: Whatever they do with all those flowers out there.

MYERS: All those flowers. Nice big gardens. I wish I could make flowers grow.

COSTELLO: Me, too.

MYERS: Sometimes it's frustrating. Especially if you just planted your tomatoes outside in D.C. and right now it's 25. That's not good and you shouldn't be planting this early anyway.

(WEATHER REPORT)

COSTELLO: All right, thank you, Chad.

MYERS: You're welcome.

COSTELLO: Day two promises just as much drama as the first. The 9/11 Commission hearings continue. What will be said today? We'll have a live report for you out of Washington.

Plus, trapped in a deadly tangle of fishing gear. Today, a rescue effort under way to save a whale.

COMMERCIAL

COSTELLO:

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Aired March 24, 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: Good morning to you.
It is Wednesday, March 24th.

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

Thank you for waking up with us.

Let me bring you up to date.

His new book accuses President Bush of botching the war on terror. Today, former counter-terrorism czar Richard Clarke will air his complaints at a public hearing of the 9/11 Commission.

A military convoy comes under attack in Fallujah, just west of Baghdad. Two coalition soldiers are wounded. Their nationalities unclear. There are reports that at least two Iraqis were killed in return fire.

A specific threat shuts the U.S. Embassy in the United Arab Emirates. Reaction to the killing of Sheikh Ahmed Yassin may have led to the closing.

The European Union has just hit Microsoft with a record $613 million fine for anti-trust abuse and orders changes in how the software giant operates. Microsoft says it will appeal the decision.

In Mexico, British divers are expected to swim through a flooded cave today to reach six of their countrymen. The explorers have been trapped in caverns for a week now.

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

Something is happening live in Spain right now. We want to bring you to Madrid, as Spain struggles to overcome its own 9/11. A memorial service now under way for victims of this month's terrorist train bombings. As I said, you're looking at live pictures from Madrid. World leaders have joined Spain's royal family and the nation for this ceremony honoring the 190 people killed in the March 11th strikes.

Our Elise Labott is there, too. She has accompanied Secretary of State Colin Powell and his aides to Madrid.

She joins us by phone to tell us what's happening now -- good morning, Elise. ELISE LABOTT, CNN PRODUCER: Good morning, Carol.

Well, naturally the main reason Secretary of State Powell is here in Madrid is to lend sympathy and support to the Spanish government and the Spanish people during this tragic time and to show solidarity with Europe in general. You know, the Madrid bombing really was the 9/11 of Europe in the eyes of the U.S.

But Powell obviously has an opportunity to speak with a lot of world leaders on the sidelines, just greeting them at this memorial service that he'll be attending. Right now he's meeting with Prime Minister Asnar and later he'll be meeting with the incoming prime minister, Zapatero.

The message Secretary Powell will be delivering here is the U.S. and Spain have an excellent relationship, strong cooperation in a lot of areas, Carol. And Powell is going to say let's keep that going.

You know, incoming Prime Minister Zapatero had a lot of derogatory comments about the U.S. during his campaign. But U.S. officials are now looking to start fresh. They say they have a lot of good relationships with people who they expect to be in his incoming government. So they want to listen to his agenda and get off to a good start. And obviously that's what Prime Minister Tony Blair will be doing when he meets with Zapatero today.

COSTELLO: Right. We just saw Secretary of State Colin Powell entering the building there. And I wanted to talk more about the repairing of the relationship between Spain and the United States. Before Donald Rumsfeld testified before the 9/11 Commission, he reached out and expressed sympathy to the people of Spain, which I found really quite interesting.

Will Spain pull its 1,300 troops from Iraq and what can the secretary of state say to Spain to persuade the new leader to keep the troops there?

LABOTT: Well, first of all, Carol, Secretary Powell is going to say Spain has been working very closely with the U.S. in a lot of areas -- the war against terrorism, a lot of intelligence sharing, law enforcement cooperation. The U.S. has been cooperating with Europe in general on these issues. So in the wake of the bombings, the U.S. wants to see how Europe will deal with this terrorist threat, in terms of cracking down on financing and things like that.

And in Afghanistan, Spain has a lot of -- committed a lot of troops. Some reports that the prime minister plans to increase additional troops to offset any withdrawal from Iraq. We'll obviously have to see about that.

But on Iraq, Secretary Powell will emphasize what the international community is doing to rebuild Iraq is very important and that everyone needs to stay the course. Obviously, Tony Blair is going to be saying that, too.

Zapatero has threatened to withdraw Spanish troops without a U.N. mandate, unless they fall under U.N. command when the U.S. hands over sovereignty to the Iraqis in June. Powell will address a possible U.N. resolution, trying to, giving more power to the U.N. and we hear that the U.S. is likely to seek such a new resolution. Right now they're just talking to ideas.

But Powell aides caution this meeting today is really not a very deep exchange. The new government isn't taking office until next month. The U.S. wants to let it get its feet on the ground and aides say really today is about to reflect what happened to Spain, continue the relationship with Prime Minister Asnar and starting a new one with the incoming government -- Carol.

COSTELLO: Well, we'll see what happens...

LABOTT: The emphasis on the relationship...

COSTELLO: Elise Labott reporting live from Madrid.

The pictures you're looking at, by the way, King Juan Carlos greeting people as they walk into a midday mass at the Almudena Cathedral.

We'll have more live from Madrid as events warrant.

More high level Bush and Clinton officials will try explaining today why the terrorist attacks were not prevented. George Tenet, CIA chief under both administrations, will kick off the testimony before the 9/11 Commission today. He'll be followed by Clinton's national security advisor, Samuel Berger. Then we will hear from former counter-terrorism chief Richard Clarke. And, finally, Deputy Secretary of State Richard Armitage will testify before the Commission.

Of course, that testimony could get really interesting, particularly because former anti-terrorism director Richard Clarke has had a lot to say lately about the Bush administration's handling of the terrorism threat.

Our Bill Prasad is following the hearings.

(BEGIN VIDEOTAPE)

BILL PRASAD, CNN CORRESPONDENT (voice-over): They watch and wear their losses -- photos of loved ones killed on 9/11.

UNIDENTIFIED FEMALE: My concern is, you know, security and what happened to security on that day.

PRASAD: The bipartisan 9/11 Commission grills representatives from past and present administrations, learning that at least three times since 1998, the U.S. came close to capturing or killing Osama bin Laden.

MADELEINE ALBRIGHT, FORMER SECRETARY OF STATE: We occasionally learned where bin Laden had been or where he might be going or where someone who appeared to resemble him might be. It was truly maddening.

PRASAD: Numerous times, the Commission heard about close calls due to vague intelligence.

BOB KERREY, IDI COMMISSION MEMBER: I keep hearing the excuse we didn't have actionable intelligence. Well, what the hell does that say to al Qaeda?

PRASAD: The Commission wanted to know if 9/11 would have happened without bin Laden.

DONALD RUMSFELD, SECRETARY OF DEFENSE: Even if bin Laden had been captured or killed in the weeks before September 11, no one I know believes that it would necessarily have prevented September 11.

PRASAD: Bush administration officials testified that the White House needed to formulate a plan to fight terrorism before taking action.

KERREY: Why in god's name have I got to wait eight months to get a plan?

PRASAD: A new book suggests Mr. Bush put al Qaeda on the back burner because he was obsessed with Iraq, prompting this defense.

PAUL WOLFOWITZ, DEPUTY DEFENSE SECRETARY: I've never been dismissive of al Qaeda. And I think precisely because I think terrorism is such a serious problem.

PRASAD (on camera): Today, the author of that book, former White House terrorism advisor Richard Clarke, will be appearing. His testimony could be the most interesting and most controversial of these hearings.

Bill Prasad, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And, of course, we will have live hourly coverage of today's Commission hearings, starting at 9:00 a.m. Eastern.

It will be an interesting and painful day in Eagle, Colorado in a courtroom there. The young woman who is accusing basketball star Kobe Bryant of rape will face questions about her sexual history.

CNN's Adrian Baschue is in Eagle this morning.

He joins us live now -- good morning.

ADRIAN BASCHUE, CNN CORRESPONDENT: Good morning to you, Carol.

It's been exactly eight months and three weeks since Kobe Bryant last saw his accuser in the Cordillera hotel room. And it's an interesting case to watch, not just because of Kobe Bryant's celebrity factor, but also because the tables are turned. Colorado legal insiders say that usually the prosecution comes stacked with its deck of cards with the evidence. But here, the defense has filed a mountain of motions, seeking to get their own version of the facts in regarding her sexual past and mental health records, most specifically claiming that she had sex with multiple partners within the 72 hours before and after the alleged rape by Bryant took place.

Now, Kobe Bryant will be in court to see his accuser testify, although he plans to be back in L.A. tonight to face the Sacramento Kings.

We spoke with legal insiders on this case and victim advocates regarding the pivotal nature of today's hearing.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think if we see evidence that this young lady may have had sex with another man after Kobe, but before she went to the cops, then there's no way Kobe Bryant can lose this trial.

UNIDENTIFIED FEMALE: In this case, we make the victim respond to her sexual history. We don't even make Kobe respond to his sexual history.

(END VIDEO CLIP)

BASCHUE: ... has received numerous death threats in this case. There will be an increased police presence outside the courthouse, with security officials having to escort her into the courtroom -- Carol.

COSTELLO: Adrian Baschue reporting live from Eagle, Colorado this morning.

A Denver furniture dealer hopes to cash in on the Kobe Bryant case. Wait until you hear this one. Steve Farland, owner of The Chairman, is selling beds, chairs and other furniture from the lodge and spa near Vail, where Kobe Bryant stayed. There's no guarantee anyone of the furniture came from Room 35, where the alleged sexual assault took place. But Farland says could be and he's looking to make a lot of money from this.

To the forecast center now and Chad.

CHAD MYERS, CNN CORRESPONDENT: I've stayed at that lodge and spa at Cordillera, in fact.

COSTELLO: It's beautiful, isn't it?

MYERS: It is amazing.

COSTELLO: Yes.

MYERS: Yes. The first place I ever took my wife. That's pretty -- it's pretty outstanding stuff.

(WEATHER REPORT)

MYERS: Do you know what time it is, Carol?

COSTELLO: Hopefully it's time for something happy to happen.

MYERS: It is time for the DAYBREAK mug.

COSTELLO: Oh, yes.

MYERS: Can you see the background I have behind me?

COSTELLO: I do, indeed. Oh, that's beautiful.

MYERS: Sent to us by a viewer. It's not going to stop flipping, but that's OK. Sent to us Anna Holmes (ph). We're going to have to use that over and over and over, because she said we can use it for free.

COSTELLO: Really?

MYERS: Yes. And those are the only kind of graphics we have here, free ones.

COSTELLO: Well, I believe that she sent that because you didn't have a DAYBREAK coffee quiz graphic yesterday.

MYERS: That's right. I know.

COSTELLO: And she wanted to help you out.

MYERS: She did.

COSTELLO: She did, indeed.

MYERS: And we'll have more on that -- I'll have it up at 6:50 when we ask the next questions, too.

COSTELLO: Absolutely.

Are we asking the Tuesday questions now, today's winner?

MYERS: We are giving away the winner. Yes.

COSTELLO: We'll, let's give away our mug today then.

MYERS: All right. Here we go. The two questions from yesterday, in the most recent Gallup poll, this was yesterday, what are people blaming the bad investment climate for right now? The answer to that one was actually high energy costs, the high cost of gasoline, the high price of your therm bill at home if you have gas, natural gas, look at your therms. They're ridiculous this year. And the northern New Jersey seaport is the first in the country to receive one of these. What is it? That was that big radiation detector. In case any cargo comes in with radiation in it, this little guy, actually, big guy, will detect that.

And the winner is, drum roll, please -- Ryan McKeen from Enfield, Connecticut. Today, we will be sending you the coffee mug when we get it.

COSTELLO: You know, I left my CNN coffee mug in the newsroom and someone stole it.

MYERS: There's been a rash of that around.

COSTELLO: Well, you know, that's how popular these cups are, so you people are lucky out there.

MYERS: Well, do you have a DAYBREAK one already?

COSTELLO: I'm not telling.

Thank you, Chad.

MYERS: OK.

COSTELLO: Do fill-ups have you fed up these days? Gas prices are hitting record prices. What's a driver to do? We've got information that could save you money.

And cracking down on college kids for using their computers for something other than homework.

Plus, cut down carbs without cutting out beer. Hmmm, it can be done.

This is DAYBREAK for March 24th.

COMMERCIAL

COSTELLO: 6:16 Eastern time.

Time to take a quick look now at the top stories in our DAYBREAK early briefing.

Former White House terrorism advisor Richard Clarke testifies before the 9/11 Commission today. His new book blasts President Bush's leadership in fighting terrorism.

A government report says the Medicare system will go broke in the year 2019 if no changes are made to the current system. That's 11 years sooner than previously thought.

And we now know why legendary singer Aretha Franklin is in the hospital. Her doctor says she had an allergic reaction to antibiotics but she is getting better. The soul singer turns 62 tomorrow.

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

You have been complaining loudly about gas prices for some time and now officially you have good reason. Gas prices have hit an history high. The average price of a gallon of unleaded regular gas is $1.74.

Live to Washington and Mantill Williams with AAA.

Good morning to you.

MANTILL WILLIAMS, AAA: Good morning, Carol.

How are you doing?

COSTELLO: OK.

While we talk, we're going to put up a graphic showing the highest and lowest gas prices in the nation. So let's put that up right now.

WILLIAMS: OK.

COSTELLO: My goodness, California, $2.14. In Hawaii, a gallon of gas will cost you $2.09.

Should we be outraged?

WILLIAMS: Well, I think some motorists are and that's because we've had these high prices for at least, almost going on two months. And last year the reason we had prices this high is because we were ramping up to war with Iraq. Now, that's not the situation. It's a totally different scenario now. Now it's really based on the high price of crude oil. We have low inventories. We also have rising demand. But we still have those lingering problems. We have inefficient refining capacity and we have a myriad of regulations. Like we have 15 different fuel rules throughout the country. So all those things are kind of working together right now to drive up prices.

COSTELLO: I, well, you know, they all may be good reasons, but I don't think that will make consumers any happier.

Will prices go even higher?

WILLIAMS: Well, Carol, that we don't know. It's not -- it's sort of like predicting what's going to happen in the stock market. But I can just tell you, historically we found that as we hit the summer driving season, particularly when we get in the middle of the summer driving season when we have really high demand, gas prices usually go up. And gas prices usually also get a bump up when we make that transfer from the winter grade fuels to the summer grade fuels. And that's the type of fuels that makes it -- that are a little bit more environmentally friendly.

COSTELLO: Gas prices have become a political hot potato now, with President Bush and John Kerry tossing that hot potato around. But let me ask you this. Has any investigation by any politician ever resulted in lower gas prices?

WILLIAMS: Well, Carol, we've had a couple of investigations the last couple of years. They were investigating whether there was some type of collusion or some type of illegal activity by the people who sell gasoline on the retail level. But they haven't found any type of wrongdoing or any type of illegal activity. So the bottom line is people are going to sell gasoline for the highest price they can get it.

So just keep in mind when you're, as a motorist, just shop with your steering wheel. Try to go for the lowest price, because gasoline is gasoline. They all get it from the same place.

COSTELLO: I know but they all seem to raise their prices at the same time.

So is there anything a consumer can really do?

WILLIAMS: Well, really, the only thing you can do is compare prices. Also, make sure your vehicle is well maintained. Carol, I'm imagining this is probably something you do every week, is you need to check your inflation pressure on your tires. I'm sure you do that every week.

COSTELLO: Oh, yes.

WILLIAMS: And then also this might be a time to use the most fuel efficient car. You might want to park that SUV. Also, talk to your employer. Maybe there are some telecommuting opportunities. This might be a good time to bring that up. And then also it's a good time to use public transit when you can.

COSTELLO: All right, Mantill Williams, many thanks, live from D.C. this morning.

And before we get completely off the topic, we'd like to show you a list of the cars that do have the best gas mileage. These figures are based on 15,000 miles a year of driving and $1.71 per gallon gas prices. And you can see what's best. Honda Insight, a five speed, you'll spend $405 a year on gas. Toyota Corolla, a five speed, you'll spend $705 a year. Jeep Liberty, a five speed, you'll spend $1,155 a year on gas. And a Ford Ranger pickup, also a five speed, $959 a year on gas.

This comes from fueleconomy.gov if you want the -- if you want more information on other brands of cars. But as you can see, we pay an awful lot of money for gas every year.

Time to talk more money in our business buzz this morning.

The European Union cracks down on Microsoft.

Stacey Tisdale has more live from the NASDAQ market site.

Wow, what a fine.

STACEY TISDALE, CNN CORRESPONDENT: It is incredible, Carol. We're just starting to see all the details of this ruling, which came out about an hour ago. Folks, what happened is European regulators have slapped a record find on Microsoft, more than $600 million, basically saying that Microsoft's a bully and it's abusing its monopoly power in the market. This fine, Carol, actually could have been a lot more than this, as much as $3 billion. But there are bigger problems for Microsoft when you like at the conditions.

First, the company has 120 days to supply technical information to rivals. That allows the competitors to create products that are compatible with Windows.

In addition, Microsoft has to offer PC makers a version of Windows that does not carry its Media Player. And under this, it has 90 days to do that.

As for what's next, Microsoft really is going to appeal this. They've already said that. But that could take a couple of years. And interestingly, some competitors are hoping that this makes the United States and countries like Japan really take another look at what Microsoft's been doing and perhaps levy some anti-trust fines of their own.

Well, here in the States, the government is cracking down on college students when it comes to downloading music. I'm sorry, the recording industry. The recording industry is suing students at 21 schools for copyright infringement. This is the first time they've really gone after college networks and the swappers at 21 pretty prestigious schools, including New York University, Stanford and Marquette. So we'll see how that plays out.

Now back over to you.

COSTELLO: All right, Stacey Tisdale reporting live from New York this morning.

Coming up, the carb craze means some of you are cutting back on your favorite beer. But our dietitian, Lisa Drayer, explains how you could have your beer and drink it, too.

And our DAYBREAK Photo of the Day. Take a look. What is it? We'll have the answer for you, coming up.

COMMERCIAL

COSTELLO: We got an e-mail from someone guessing, Chad.

MYERS: Oh yes?

COSTELLO: He guessed they are tulips in Holland.

MYERS: Close.

COSTELLO: But no cigar.

MYERS: Only about 7,000 miles away.

COSTELLO: What is it?

MYERS: The Carlsbad flower fields out there in the hills of California. You can really even see the ocean from there. Fifty acres of flowers, Carol. I was just looking it up on the Internet, do a Yahoo! search, type in Carlsbad flower fields. A nice shot there, obviously.

COSTELLO: It's beautiful.

MYERS: Rows and rows and rows. They cut them, they plant them, they use the seeds and all that other kind of stuff.

COSTELLO: Whatever they do with all those flowers out there.

MYERS: All those flowers. Nice big gardens. I wish I could make flowers grow.

COSTELLO: Me, too.

MYERS: Sometimes it's frustrating. Especially if you just planted your tomatoes outside in D.C. and right now it's 25. That's not good and you shouldn't be planting this early anyway.

(WEATHER REPORT)

COSTELLO: All right, thank you, Chad.

MYERS: You're welcome.

COSTELLO: Day two promises just as much drama as the first. The 9/11 Commission hearings continue. What will be said today? We'll have a live report for you out of Washington.

Plus, trapped in a deadly tangle of fishing gear. Today, a rescue effort under way to save a whale.

COMMERCIAL

COSTELLO:

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