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American Morning

Violence in Iraq; Interview With Senator Saxby Chambliss; Roadside Bomb in Iraq Kills U.S. Military Personnel

Aired March 31, 2004 - 9:00   ET

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

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


SOLEDAD O'BRIEN, CNN ANCHOR: Blood flowing in the Sunni Triangle again this morning. One of the deadliest days for Americans in months.
Plans being made for Condoleezza Rice to go before the 9/11 Commission. Should she be asked about her efforts to discredit Richard Clarke?

And just a few minutes ago, OPEC makes the call that could have you paying higher prices at the gas pump.

We'll explain ahead on this AMERICAN MORNING.

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

BILL HEMMER, CNN ANCHOR: Nine o'clock here in New York. Welcome back, everyone. Good to have you with us today.

Other stories this hour: interesting one, too. We'll talk to a couple on vacation spotting a child and thought something was out of place. It led to a remarkable bit of detective work. We'll tell you that story in a moment.

O'BRIEN: Truly an amazing story. Kudos to the woman who did that.

Also this morning, Michael Jackson turned up in Washington, D.C., yesterday, for a meeting with members of Congress. What's on his mind? We're going to check in with Congressman Gregory Meeks, who's one of only a handful of representatives who really were willing to sit down with Michael Jackson.

HEMMER: Cafferty was not in that audience.

CAFFERTY: Did you ask what was on his mind? Now, if anybody could answer that question, that would be something to listen to, wouldn't you say?

O'BRIEN: He was talking about his efforts on AIDS in Africa, as Congressman Meeks will tell us in just a little bit.

CAFFERTY: I think he has other issues ahead of AIDS in Africa that may have concerned him.

Air America, the New liberal radio network, launches today at noon. Is this just what the country needs or not? AM@CNN.com is the e-mail address, and we're having a little fun with that this morning.

HEMMER: We are. Jack, thanks. Top stories now.

Word from Austria the OPEC oil cartel now formally approving a cut in production. Word from the OPEC ministers meeting in Vienna that a 4 percent cut in output has been agreed to, despite U.S. calls for a raise in production. The move comes with prices at the pump in this country at or near the record levels.

It's become a hot issue on the campaign trail. Senator John Kerry criticizing President Bush for pumping millions of barrels of oil into the nation's strategic petroleum reserve despite the high prices. The White House dismissing that argument, saying that filling the reserve to its maximum level is a matter of national security.

BP Oil Refinery back up and running today in a Texas city. The plant was evacuated yesterday near Houston after a fire caused by an explosion inside of a furnace. No injuries reported. An investigation has been started, but a company official says there does not appear to be any foul play. Again, southeastern Texas there.

Middle East now. Clashes broke out today in the Palestinian- controlled area of east Jerusalem. About 15 Israelis moved into the neighborhood today, prompting Palestinians to throw rocks. Israeli police and soldiers fired tear gas. More than a half-dozen taken into custody. Several police officers and Palestinians have reportedly been injured as a result.

Minneapolis, a judge there says begging is a form of free speech. The judge ruled that an ordinance on the books that prohibits begging is unconstitutional. The ordinance was challenged by a homeless man who was ticketed by police while begging drivers for money.

The judge said she saw little difference between begging for cash and soliciting money for charities. Again, that out of Minneapolis.

You're up to date now, 9:03.

O'BRIEN: An interesting legal interpretation, I think.

(WEATHER REPORT)

O'BRIEN: It has been another deadly day in Iraq. Five members of the American military were killed by a roadside bomb west of Baghdad near Fallujah. And in a separate incident in Fallujah, witnesses say a grenade attack on two vehicles there left four people dead, at least.

Earlier on AMERICAN MORNING, I spoke with Major General Ray Odierno. He is the commander of the 4th Infantry Division. He's recently back from Iraq. And I asked him if he thinks the violence there is getting worse.

(BEGIN VIDEOTAPE)

MAJ. GEN. RAY ODIERNO, COMMANDER, 4TH INFANTRY DIVISION: I think it has to do with desperation. I think that what they are trying to do is they want to influence the future government of Iraq.

They see it coming aboard. They see it making progress. They don't want that to happen. These people have everything to lose. What I would emphasize, it is a small percentage of the total population of the Iraqi people.

O'BRIEN: We've heard General Kimmitt make clear distinctions between insurgents and terrorists. Do you see those distinctions, and what exactly are the distinctions, and how do you change your battle plans for fighting each group?

ODIERNO: Well, again, while we were over there, every single day I would tell you we re-evaluated how things were going. Because of the successes we had, they would then change their tactics.

The insurgents are individuals who are what I always called nationalists that were really associated with they don't want any foreign individuals within Iraq. They want to take over control, continue to have power in Iraq. The terrorists are individuals who want to just conduct terrorism throughout the world, and they use Iraq as just one other forum to conduct that terrorism.

O'BRIEN: So of those two then, which do you think is the bigger threat right now in these hotspots, these areas in Iraq?

ODIERNO: I think in the hotspots it's still insurgents, for the most part. I think they are trying to influence the outcome of the government being turned over and the future government of Iraq.

I think the terrorists will continue to try to establish their base in Iraq in order to conduct attacks against western forces. However, I believe we've been able, so far, to interdict most of that, and I think we'll continue to try to do that.

O'BRIEN: I know that training an Iraqi Civil Defense Corps was a really big part of your mission, training the police as well. Are you finding that the police are -- or people that want to be members of the police force are still coming in, in spite of the attacks against them?

ODIERNO: I found -- I left about two weeks ago, Soledad. And up until that point, about a week before I left, we had an attack up in Kirkuk on a police station with a suicide bomber. And it killed about eight police officers.

The next day, we had 30 to 50 people who came forward who wanted to replace those eight police officers. Throughout we've had about a six to one ratio in the last three months here to join the Iraqi Civil Defense Corps or the police force.

The Iraqis want to move forward. The majority of Iraqis want to move forward. They understand democracy. They understand having their own choice, and they want to be a part of it. Unfortunately, we have these individuals who want to do everything they can to unhinge this because they have everything to lose in this battle in Iraq.

(END VIDEOTAPE)

O'BRIEN: That's Major General Ray Odierno joining us a little bit earlier on AMERICAN MORNING.

The total U.S. death toll in Iraq is now 600; 461 have died since President Bush declared on May 1 that major fighting was over -- Bill.

HEMMER: Also, the president changing his mind about allowing Condoleezza Rice to testify publicly. Thirty minutes ago, I talked with Democratic senator, Jay Rockefeller, about what he would like to hear from Dr. Rice.

(BEGIN VIDEO CLIP)

SEN. JAY ROCKEFELLER (D), INTELLIGENCE COMMITTEE: Was there any really fundamental difference between the terrorism plan that Clarke had drawn up for President Clinton in October, and then of 2000? And then the plan which Clarke had to wait for eight months before the president's cabinet, so to speak, ratified it. And that happen just one week before September 11. Was it really more or less the same plan?

(END VIDEO CLIP)

HEMMER: That's the one question Senator Rockefeller wants answered. Republican Senator Saxby Chambliss of Georgia, member of the Intelligence Committee as well, with us now from D.C.

Senator, welcome back here.

SEN. SAXBY CHAMBLISS (R-GA), INTELLIGENCE COMMITTEE: Good morning, Bill.

HEMMER: Thank you, sir. Senator Rockefeller just said what his pressing question is. What is yours?

CHAMBLISS: Well, the fact of the matter is, what Jay just said, Richard Clarke has already said there was no plan, that the Clinton administration had no plan for preventing terrorism. That there was no plan that was transferred to the Bush administration.

What I look to see from Dr. Rice is her version of exactly what was said relative to the focus of the Bush administration on terrorism. And I can tell you that there's a huge contradiction in what Richard Clarke said back in June of 2002 before the joint House Senate intelligence Committees and what he said in his book and what he said in his testimony the other day.

HEMMER: Well, take that just a step further, because Senator Rockefeller answered that same question. He said he saw no inconsistencies. Where do you see them, Senator?

CHAMBLISS: Well, I don't think there's any question. You don't have to be a Philadelphia lawyer to realize by reading the testimony from 2002 and reading the testimony from last week, there's a huge contradiction. The president of the United States was very focused from the very day he took office, and Mr. Clarke was a big part of the team that prepared him for the -- on the issue of terrorism.

HEMMER: I also asked Senator Rockefeller, I'll ask you the same way. Does this settle the argument when Condoleezza Rice appears or does it just push it forward more?

CHAMBLISS: No, absolutely not. I don't think anybody will be convinced who wasn't convinced before about the situation relative to the preparation and focus of the Bush team on terrorism. And that's the problem with commissions like this, Bill, that they really raise more questions than they will ever answer.

And it's unfortunate that these people who are -- have had family members as victims on September 11 are going to have their emotions to churn once again as we continue to go through this. But there will be more questions raised than answers given.

HEMMER: Let me pose this question to you and put it on the screen for our viewers to see. CNN-USA Today-Gallup poll, a question was about how they believe the Bush administration is handling terrorism, a key component this election year, security and the war on terror. Fifty-eight percent say now they approve of it. as compared to 65 percent, a dip back in December.

There's also suggestions today in the "L.A. Times" that Republicans on Capitol Hill were getting impatient. Impatient in the White House not to put Condoleezza Rice forward. Was that the case among your colleagues?

CHAMBLISS: Well, there's some frustration out there. I mean, I come from a very conservative state, and people in my state would ask me as I went home last week and talked with them, "You know, Condoleezza Rice has talked to every reporter out there. She's answered every question. I don't understand this separation of state."

You simply can't explain that to people. So I think there has been some frustration.

I think the White House has made the correct decision. And, you know, it's not just the correct decision to put Condoleezza Rice on the stand, so to speak, but it's also a positive decision when the president says Vice President Cheney and myself will answer any question the commission wants to ask us. That's not playing politics. That's wanting to get to the bottom of the issue and give the American public exactly what they are looking for, and that's the truth.

HEMMER: Well, Governor Kean says they'll hear that testimony within the next two weeks. So we'll await word now on exactly when that will take place.

Senator, thank you. Appreciate it.

CHAMBLISS: Sure, Bill.

HEMMER: Saxby Chambliss there in D.C. Appreciate it. O'BRIEN: Still to come this morning, call it a mother's instinct. You heard the story. A missing boy reunited with his mom after a chance encounter with some newlyweds far from home. That couple and the happy mother and the adorable little boy join us up next.

HEMMER: Also, what's behind the recent turmoil in the Tyco jury deliberations? Some insight in a moment when we hear from an alternate juror in that case.

O'BRIEN: And, also, what was the king of pop doing on Capitol Hill? The latest moves by Michael Jackson just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Barb Quinlan was vacationing in Belize when she had a feeling that something was just wrong. She spotted this 4-year-old Jake Clenney with his father at her hotel and she took a picture. When she got home, followed up, she found that Jake was, in fact, taken from his mom in Texas.

Jake is back with his mom now. Heather Clenney joins us. So do Barb Quinlans, Barb's fiance, Murray Kadel -- sorry Murray -- who is part of the detective duo in Belize.

Nice to see you.

Hey, Jake, you fine? You all right? I see you getting up, walking around a little bit. That's fine. If you want to get up and walk around, you're welcome to. We want you to be comfortable.

Thanks for coming in, guys. This is such a bizarre story.

So Barb, let's start with you. You were suspicious. You were on vacation in Belize at your hotel, and you see Jake with his dad. And you say you were suspicious. Why?

BARB QUINLAN, IDENTIFIED BOY: Because there was -- throughout the whole time that we saw him there, there was never a mom figure there. It was just David and Jake. And being that the main nationality on the island was either black or Hispanic, Jake was the only white boy, little white boy there the whole time.

O'BRIEN: People would say, OK, that's unusual. But you thought it was suspicious. I mean, you really took it to the next level. Was there anything that his dad was doing that made you say, there's something wrong with this picture?

QUINLAN: Just the fact that he never mentioned a wife, a mother.

O'BRIEN: You can see your mom on TV, can't you, Jake?

QUINLAN: He never mentioned a wife or mother or anything about Jake's mom.

JAKE CLENNEY, REUNITED WITH MOTHER: I can see you on TV.

O'BRIEN: You can see your mom on TV, can't you, Jake?

QUINLAN: He never mentioned a wife or a mother or anything about, you know, Jake's mom. And just seeing the two of them together day in and day out...

O'BRIEN: He didn't mistreat the boy in any way?

QUINLAN: No. And he was always up late at night.

O'BRIEN: One o'clock in the morning you'd see them in the hotel?

QUINLAN: Yes. Like 1100 in a bar. It was just not the right thing.

O'BRIEN: So it seemed so unusual. You decided to take a photograph. And you arranged to do this without the knowledge of Jake and his dad. And to do this you got your fiance into the act a little bit. Tell me a little bit about what you did.

QUINLAN: Well, he was sitting next to David, and I asked him to switch places with me. And I asked him to take a picture of me. It was a Super Bowl Sunday party and we had on a funny football hat. And I asked them to focus more on David and get his face.

O'BRIEN: So you pretended to take a picture of you...

QUINLAN: Exactly.

O'BRIEN: ... but actually, at the same time, you were taking a picture of the guy you were suspicious of.

Did you think your fiance was nuts, was crazy? What did you think at first?

MURRAY KADEL, FIANCE IDENTIFED BOY: Well, at first, when I found out he lived there with a 4-year-old boy. So we talked it over and thought it look a little suspicious.

O'BRIEN: You came back to the U.S., got online, and started searching on the Web site for the National Center for Missing and Exploited Children. What did you find?

QUINLAN: As I typed in a year missing, male, Houston, Texas, and I was scrolling down; there was only seven that were missing from there.

O'BRIEN: Because he said he was from Texas.

QUINLAN: Correct. He said he was from Houston, Texas. And as I was scrolling down, I saw Jake's picture.

O'BRIEN: What went through your mind at that moment?

QUINLAN: I screamed and called Murray and said, "It's Jake. It's Jake. It's him." You know, here's David. Because you click on view poster and there was his picture.

O'BRIEN: Heather, you get a call from a complete stranger who has done so much detective work. I cannot even imagine what that was like for you. What went through your mind?

HEATHER CLENNEY, JAKE'S MOTHER: I still have a hard time imagining, too. It was -- I couldn't believe it. I was -- you know, it's something you dream of every day. I'd go to sleep at night just waiting to hear something.

And if I happen -- I couldn't sleep. I lost sleep for several nights. I mean, I went through a month waiting.

O'BRIEN: Did you have any clue that Jake was with his dad in Belize?

CLENNEY: I had a clue who he was with. I just didn't have any idea where they'd be. I had no idea where they would wind up going.

O'BRIEN: What happens now? Jake's been reunited with you. And he's so cute. He's been wandering around the set a little bit, trying to play with some of our decor. We like that.

You like that, Jake. You can touch anything you want. What happens now to your ex-husband?

CLENNEY: All I know is he faces federal charges. So he's being -- they withheld bond. They wouldn't let him out on bond. So he's just facing charges.

O'BRIEN: How do you say thank you to somebody, to two people who have returned your child to you?

CLENNEY: I don't know how to begin to start saying thank you. It's just amazing. She's our angel sent from god. I mean, she brought my little boy back home.

O'BRIEN: How is he doing?

CLENNEY: Pretty good.

O'BRIEN: He looks pretty good. He looks pretty rambunctious. Looks kind of like a normal 4-year-old, doesn't he?

CLENNEY: That's him.

O'BRIEN: Well, Barb and Murray and Heather, thank you so much for coming in to talk to us.

CLENNEY: Thank you.

O'BRIEN: Congratulations to you. I mean, talk about an angel. Wow. What an amazing story.

Thanks for sharing it with us. We appreciate.

And, Jake, you're too cute. Thanks for coming in to talk to us.

Bill?

HEMMER: Yes, we like a story to end that way. Soledad, thank you.

In a moment here, Michael Jackson to Washington, bringing an important cause to Capitol Hill there. All this while a California grand jury considers his child molestation case back in Santa Barbara.

Back in a moment. More on that, and more here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: In a few minutes, the jury in the case of the former Tyco CEO, Dennis Kozlowski, starting 10th day of deliberations today. Kozlowski and another top Tyco official accused of looting the company of about $600 million, spending the money on lavish lifestyles.

One juror, who we're calling juror number four, is said to have flashed an OK sign to the defense attorneys last week. What's going on inside that jury room? We'd like to know, certainly.

Yesterday, in fact last night, I talked with an alternate juror, Darryl Barrett, who was with the sitting jury until it started deliberations. I asked him if he noticed any friction between juror number four and the others on that panel.

(BEGIN VIDEOTAPE)

DARRYL BARRETT, ALTERNATE JUROR: I seen her get into one of the jurors before. She had told one juror to shut up once before.

HEMMER: She did?

BARRETT: Yes.

HEMMER: Told another juror on this one occasion?

BARRETT: Yes.

HEMMER: Now, was that the only you ever saw this type of friction?

BARRETT: Other times other jurors may have gotten into it with her, but it was nothing serious.

HEMMER: Do you think the jurors right now -- it's a difficult question, I know -- are they going to be able to reach a verdict in this case?

BARRETT: I believe (UNINTELLIGIBLE). They're very strong. I believe they can do it.

HEMMER: Yes. If you were still on that panel, deliberating this, what would be your verdict?

BARRETT: It's hard to say. I'd have to weight it out with the rest of the jurors.

HEMMER: Well, what did you think of the prosecutor's case?

BARRETT: They have a strong case, but I don't see where they're 100 percent guilty.

HEMMER: Oh, really? So you're still undecided then at the point that you left?

BARRETT: Very undecided, yes.

HEMMER: All right.

(END VIDEOTAPE)

HEMMER: He explained that, too. Interesting after that interview. He said it seemed to him as if the board approved Dennis Kozlowski to use this $200 or $300 million to go out and buy these things, and that it also seemed to him that his attorneys were proving that he was paying the money back to the company. Which left him questioning whether or not he committed any wrongdoing.

That's one alternate juror, his opinion. So it might give us a bit of insight into what's happening there.

CAFFERTY: How would you like to be in that jury room after 10 days of those folks?

HEMMER: Six months, Jack.

CAFFERTY: No, I mean in the jury room, the deliberations.

HEMMER: Yes. That's been going on for six months.

CAFFERTY: They haven't been in there six months. They've only been in there 10 days.

O'BRIEN: Do the Question of the Day.

CAFFERTY: I'm trying to get along with everyone here this morning.

HEMMER: You are. Keep trying.

O'BRIEN: Do we need to hold hands and do "Kumbaya?"

CAFFERTY: No. I don't do that stuff.

Coming soon to cable TV and radio airwaves, The New York Observer reports former Vice President Al Gore is going to make a deal later this week to buy a cable TV channel. Gore's team says they'll take the station and make it into a "youth-oriented public affairs channel." It sounds pretty exciting. And the liberal talk radio network Air America debuts today at noon with Al Franken. He's going to call his show "The O'Franken Factor" after that guy up the street at the "F" word network.

So the question today is: does America need additional liberal media outlets? Getting some pretty good mail, actually.

Tracy in Port Royal, South Carolina: "You bet you your United States Constitution we need more liberal outlets. In the past few years, I've traveled our country coast to coast, border to border. It's difficult, if not impossible, in most areas in the United States to find radio stations with a decidedly liberal slant."

Dave in Nevada writes this: "Most media are balanced between the right-leaning owners and left-leaning reporters. Fox doesn't lean. It fell over a long time ago. But talk radio has been owned by the right. We do have a free enterprise media, so we'll let the listeners decide if Franken and company make it."

Mark in Bethany Beach, Delaware: "I do not feel we need any additional liberal media outlets. CNN is doing a great job already."

And Doug in Waco, Texas: "Every market I travel through has the major national and a minor league local version of the daily Republican pep rally. Radio today teaches us Republicans are good, you can lose weight while sleeping, Democrats are bad, and you can increase your penis size with a daily pill. So the answer is, yes."

Thank you, Doug. AM@CNN.com.

O'BRIEN: Just what I was thinking.

HEMMER: What do you think he had for breakfast?

O'BRIEN: Just what I was thinking, it couldn't get any worse.

CAFFERTY: Just the messenger here.

HEMMER: We were noting earlier 7:01:33 Eastern Time was the moment earlier today in which...

O'BRIEN: (UNINTELLIGIBLE), Jack Cafferty.

CAFFERTY: I'm sensing a certain hostility.

O'BRIEN: Not at all. I am so off tomorrow. In 33 minutes, I start...

CAFFERTY: Are you going to be away tomorrow?

O'BRIEN: Yes, I am.

HEMMER: Jeez.

O'BRIEN: Still to come this morning, the travel season right around the corner. There's time to save money, believe it or not. You can still enjoy it in style. But you've got to stick around for our "90-Second Tips" just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

O'BRIEN: And it's exactly half-past the hour on this AMERICAN MORNING.

Another bloody attack on troops in Fallujah today to report. Five soldiers killed in a roadside bombing. We're going to get you an update on that attack. Also, another attack to tell you about equally disturbing, this time involving civilians. Really a horrific thing.

HEMMER: Very much so. And there is some videotape there that we will not show, even the graphic content of it. Jim Clancy is standing by, and we'll get you there live in a moment.

Also, a much lighter note. Financial advice around the corner here. A guy that you want on your side when it comes time to saving money this morning.

We're talking about David Bach about how to get the most vacation bang for your buck. "90-Second Tips" up this next 30 minutes as well.

O'BRIEN: Top stories, though, first to begin with.

Plans now under way for National Security Adviser Condoleezza Rice to go before the September 11th Commission. President Bush announced yesterday that Rice would testify in public and under oath.

The president made the decision after getting a written guarantee that this would not set a precedent for future congressional investigations. The commission chairman, Tom Kean, says the panel is coordinating with the White House right now to set a date.

(BEGIN VIDEO CLIP)

THOMAS KEAN, CHAIRMAN, 9/11 COMMISSION: All the commissioners want to be there. So we want to get it around their schedules as well as her schedule. So (UNINTELLIGIBLE) too easy. We hope to do it in the next week, 10 days.

(END VIDEO CLIP)

O'BRIEN: The president and vice president are also planning to meet with the commission.

Democratic presidential candidate John Kerry will undergo shoulder surgery today. That means he won't be able to do much vigorous handshaking for a while. Senator Kerry's right shoulder was hurt last January during a sudden bus stop while he was campaigning in Iowa. Doctors say rotator cuff surgery takes only about 45 minutes and the senator is expected to be back on the road next week.

And three southbound lanes on Interstate 95 open again. Crews worked during the night to replace an overpass in Bridgeport, Connecticut. The lanes were shut a week ago because of a fiery crash there. Officials say the temporary bridge is safe, but they are urging commuters to stick with the 45-mile-an-hour speed limit.

(WEATHER REPORT)

HEMMER: From Iraq today, another deadly day there. Two separate attacks to talk about.

Witnesses say in one attack, a grenade in Fallujah on two vehicles leaving at least four dead there. Also, five members of the American military killed by a roadside bomb also west of Baghdad near the town of Fallujah. Jim Clancy on the scene there in Baghdad, reports now on both of those incidents.

Jim, hello there again. A bloody day on this Wednesday.

JIM CLANCY, CNN CORRESPONDENT: It certainly is, Bill. And a spike in casualties for the U.S. here. Nine, if they are counted altogether. Five of them were U.S. soldiers that were in a convoy.

A bomb apparently exploded under their vehicle, killing five U.S. soldiers. We don't have more details than that, but General Mark Kimmitt did give us more details on what happened in nearby Fallujah, a real hotbed for resistance to the U.S. occupation and the coalition forces' goals in Iraq.

There were four civilian contractors who were trying to make their way in a convoy of two cars. They were set upon with hand grenades, apparently igniting the vehicles. It is not known if the occupants were killed by the -- in the initial grenade attacks or by the gunfire that was sprayed into their cars to follow.

But crowds gathered very quickly. The whole scene became something of a nightmare.

Some of the charred bodies were dragged out through the streets. They were mutilated. There were other problems that were experienced there. And, yet, as we heard just a few minutes ago from General Kimmitt, there is not yet, or there may be just now arriving, U.S. forces on the scene. They may be working with Iraqi police to try to recover the bodies.

No more information available on that. But on this subject of Fallujah itself, a recurring problem for the U.S. military, here's what General Kimmitt had to say.

(BEGIN VIDEO CLIP)

BRIG. GEN. MARK KIMMITT, U.S. ARMY: Fallujah remains one of those cities in Iraq that just don't get it. It's a former Ba'athist stronghold. This was a city that profited immeasurably and immensely under the former regime.

They have a view that somehow the harder they fight the better chance they have of achieving some sort of restoreationist movement within the country. They fight. We work with them. It is a small minority of the people in Fallujah. Most of the people in Fallujah want to move on with their lives, want to move forward. Want to be part of the New Iraq.

(END VIDEO CLIP)

CLANCY: On those people who celebrated outside the burning cars, Dan Senor had this to say: he said, "Those aren't the people we came here to help."

Back to you, Bill.

HEMMER: Jim, if I could, quickly, he said a small number at work there in Fallujah. Can we define that number "small"?

CLANCY: Well, I don't think you can define it in strictest terms, but I think that you can say that it's probably in the low hundreds. Certainly, it doesn't take many people to carry out a number of attacks like this. And in recent days, we have seen a growing trend toward one vehicle, one group of occupants being involved in multiple incidents in the same day.

And all of this, all of these horrific scenes have to be weighed against something else that came out of the press conference today. More than 50 arrests, tens of thousands of dollars, hundreds of millions of dinars seized by coalition troops, along with huge arms caches. There's a lot going on, on both sides, but this incident is going to be burned in a lot of people's minds.

HEMMER: Indeed, it is. And some of that video too graphic for us to show. Jim Clancy, thanks, from Baghdad -- Soledad.

O'BRIEN: While a California grand jury decides whether Michael Jackson will stand trial for child molestation, the pop star is in Washington, D.C., promoting the fight against AIDS in Africa. Jackson has been meeting with members of the Congressional Black Caucus.

And earlier this morning, we were joined by Congressman Gregory Meeks. He was one of those who met yesterday with Jackson. And I asked him why he and 11 members of the Congressional Black Caucus agreed to the meeting when the rest of the caucus declined.

(BEGIN VIDEOTAPE)

REP. GREGORY MEEKS (D), NEW YORK: I am on the International Relations Committee, and I sit on the subcommittee for Africa. I understood going in that the conversation would be around HIV and AIDS, and what's taking place in Africa, and some of the accomplishments, as well as some of the future aspirations of Mr. Jackson in helping to eradicate the disease on HIV-AIDS. And so I went to listen to hear what he had to say and to do anything that I can to draw attention to the fact that we here, we sit comfortably, but have to make sure we eradicate that disease that is worse than the black plague ever was.

O'BRIEN: You say that it's always difficult to get all the members of the Congressional Black Caucus in one room. But, realistically, many of those members said that actually -- and they said this anonymously -- that actually there was no political upside for them to meet with Michael Jackson, considering the charges that are now pending against him. You didn't have those concerns?

MEEKS: No, again, I'm sitting here today, and we could talk, and I could talk a little about HIV-AIDS and what's taking place in Africa. You know, I've sat previously in my former profession as a prosecutor, so I understand what's taking place there; I'm not there to prejudge in the political part.

I'm here, though, to make sure that we live in a global world, that we can make sure that we begin to eradicate HIV and AIDS. And I want to do whatever I can and work with whomever I can to accomplish that goal.

O'BRIEN: What sorts of things are you hoping that Michael Jackson will be able to do for you? As you well know, his charity has had some serious financial troubles, and, in fact, has stopped making any kind of donations at this point. So what would you like him to do?

MEEKS: Well, at least according to what he stated to us at the meeting, you know, he wants to do things such as what he did with "We are the World," and trying to work with others that may be in Hollywood and other artists so that they can raise some funds. Again, via music, doing something similar to what Oprah Winfrey is doing now over in South Africa.

So I think just the attention, the attention that anyone can bring to the ravaging disease. Sometimes we get so comfortable here in America, that we -- we know that, you know, even our underbelly, AIDS is still there. So any time we can bring attention to it, any time we can talk about it, anybody that can, I think we should, because I think it's extremely important in this day and age in which we live in.

(END VIDEOTAPE)

O'BRIEN: Congressman Meeks of the Congressional Black Caucus talking with us earlier this morning.

Michael Jackson is planning a trip to Africa later this year to help in the fight against AIDS -- Bill.

HEMMER: In a moment here, how you pack for summer vacation. It's not too early to think about it.

O'BRIEN: Never too early.

HEMMER: It could make a difference when it comes to saving money. That's up in a moment.

O'BRIEN: Also, a toy that's just about as American as apple pie, but now is it part of a political battle? We'll take a look at that just ahead on AMERICAN MORNING. (COMMERCIAL BREAK)

O'BRIEN: Well, spring has sprung. So the time is right to plan and save for that summer vacation. In this week's edition of "90- Second Tips," personal finance contributor David Bach tells us how the early bird gets the deals.

Hey, nice to see you, as always. Thanks so much.

DAVID BACH, PERSONAL FINANCE CONTRIBUTOR: Good to see you, Soledad.

O'BRIEN: How much lead time do you realistically need to start saving enough money for your summer vacation?

BACH: It really depends on how much money you're going to spend on vacation. You know, there's sort of good news and bad news.

Our friends in Europe go on vacation up to two months a year. Here in the United States, you go on vacation for a week and a half. But that week and a half vacation can cost the average family $2,000, $3,000, $4,000.

O'BRIEN: At least.

BACH: At least. So really the thing to do is plan your vacation budget six months out. Create a vacation fund. That's what I teach in my books; that's what I teach in my seminar.

O'BRIEN: Next piece of advice: use credit cards to accrue cash -- to accrue and cash in on mileage points. And I know sometimes you are not a big fan of credit cards.

BACH: I'm not a big fan of using credit cards. But if you are responsible and you pay your credit cards off every month, and you have a rebate card, over the year you can get enough frequent flyer points to pay for the entire vacation. You know, get two or three free plane tickets, or you might even get a couple thousand dollars in cash back, depending on the card.

So the key is, make sure you are paying those credit cards off each month. But get those credit cards to work for you, to actually pay for your vacation.

O'BRIEN: What's the best way to plan for your vacation so that there are no surprises? So that you've stashed away the money, boy, you've put that $5,000 away and, oops, actually your vacation costs $6,500 with you and the four kids.

BACH: Well, I think one of the biggest things is to really read the fine print on your actual travel tickets. In other words, if someone tells you that this vacations is going to cost $2,000, does that include tax, local fees?

You know, when you go into a hotel, they tell you it's $150. But by the time you get your bill, there's an extra $50 in miscellaneous taxes. The same thing happens with rental cars. So ask your travel agent, or if you're doing it yourself, get all the fees up front so you really know what you are paying for.

O'BRIEN: You also say consider pre-planned vacation packages, because they essentially do that for you. They spell it out.

BACH: They do. And the nice thing about prepaid vacation packages is that everything is included. You can get the food, the hotel, the airline, the car, all in one package deal. And sometimes it's a very, very good price.

O'BRIEN: If you are flexible you actually can save a lot of money.

BACH: Yes. For example, right now, if you wanted to go skiing, there's a lot of snow right now in the mountains. But guess what? Nobody is skiing at the end of March, beginning of April. So when you travel on times that are maybe just two weeks away from the major time, you can get a trip as much as 50 percent off.

O'BRIEN: Practice the art of negotiation. Can you really bargain with people like travel agents and...

BACH: Oh, let me tell you....

O'BRIEN: I mean, can you go to the Ritz-Carlton and say I'm not paying $300 for a room. I'll pay $150.

BACH: Yes, yes and yes. And I'll give you my Ritz-Carlton story.

O'BRIEN: OK.

BACH: OK. I just went to the Ritz in Bachelor Gulch. It's a classic example of this.

I went online to the Ritz-Carlton. They didn't have any special deals for skiing. I then called directly and said, "Are you guys having any ski packages right now?" Well, it turned out they were.

I got a package rate that included my lift tickets that was half the price of the typical rack rate. So the rack rate was like $800. But I got my ski tickets and my room for less than that.

Then, when I got to the hotel, they had another special coupon inside one of their magazines. I went back to the manager and said, "Hey, you were advertising this price last month. Can I have the same price?" "Yes, Mr. Bach, we'll be happy to accommodate you."

O'BRIEN: That's not just because you're Mr. Bach and they can do that?

BACH: No, anybody really can do that. But you do have to spend time. And I spent about an hour shopping around. But can I tell you something, Soledad? That saved me $2,000 on that trip.

O'BRIEN: Wow. Totally worth it then. You also say stick to an itinerary?

BACH: Yes, stick to an itinerary. In other words, when you go on a vacation, a lot of times people all of a sudden make a change, believe it or not. They decide they're going to come back a day later or come back a day early.

That's how you get nailed. Those extra change fees on your airline tickets, your train tickets can add up to hundreds of dollars and increase the cost of your vacation by 20 or 30 percent.

O'BRIEN: Next piece of advice, bring, don't buy. I know what this is, and I am so bad at this. I land somewhere and I have to buy everything because I've forgotten my shampoo, my lotion. You know, everything.

BACH: You know when you go on the beach vacation and you forget your suntan lotion?

O'BRIEN: Always.

BACH: At Wal-Mart, suntan lotion's $2, right? But by the pool it's $19.95. It's the exact same suntan lotion.

So suntan lotion, shaving cream, razor blades, film, all the obvious things, stock up on that and take it with you before you go on that trip. You could save easily $100 on your vacation.

O'BRIEN: Yes. I would imagine at least $100.

And, finally, there's no place like home. Are you encouraging people to stay home for vacation? That's a fun vacation, camp out in your backyard?

BACH: Yes, but think about it. It really can be. And, again, using myself as an example here, last week we were supposed to go to Vermont. We stayed in New York City.

We did the things in New York City that people come here to do. We went to the museums, we visited some of the local areas. We went out to restaurants. Had a great week.

But people live in a lot of cities like New York where there's a lot to do. When people come into the town for that visit, they bring people to these locations, but they don't go to those locations when they are just living there.

O'BRIEN: Right. You never -- I went to the Empire State Building. I'm a New Yorker. I went to the Empire State Building two years ago, first time ever.

BACH: And guess what? That's free.

O'BRIEN: Yes, -- well, nothing's free. But it's not very expensive.

David Bach, as always, nice to see you. Thanks for some great tips.

BACH: Thank you, Soledad.

O'BRIEN: Appreciate it.

David Bach, of course, is America Online's money coach. His Web site is finishrich.com. David's here every Wednesday with tips on how you can improve your financial life.

Bill?

HEMMER: All right, Soledad. Thanks.

Still to come here, the little red wagon, a fixture for generations of Americans. Well, it's going a long way from home. Andy has that after this.

(COMMERCIAL BREAK)

HEMMER: Well, the trend of outsourcing American jobs overseas now includes even that little red wagon. That and a check of the markets. Andy Serwer is "Minding Your Business" with us now, 21 minutes into the day of trading.

Which way are we going?

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: South. Yes.

Markets folding back a little bit this morning. Let's check it out.

A lot of that has to do with what's going -- you see it down here 20 points on the Big Board. A lot of that has to do with what's going on with OPEC.

Earlier this morning, OPEC announcing they would be cutting back production by about 4 percent. That is sure to make oil prices continue to rise a little bit. Obviously, not very good news for the U.S. economy.

OPEC provides about a third of the world's oil. Eleven nations in that cartel. And the price of oil around $36 a barrel. If it goes to $40, that's a big psychological point that would really wreak even more havoc. Obviously, people not happy with the price of gasoline.

One stock moving northward, Bill, though, is Best Buy. They said they are selling a lot of consumer electronics. So that stock has been moving up.

But let's talk about outsourcing. I know we talk about this almost every day. This is a story we couldn't resist doing, though.

The Radio Flyer, the little red wagon, an American classic made in Chicago for over 70 years. There it is. Bumping up and down, Bill, in my little red wagon. No, Barney did not write that song. That's a folk song, by the way. It will be shipped to China. They're going to be making them in China starting -- that's a great...

CAFFERTY: There's the construction crew.

SERWER: Senior executives at a certain network, Jack, remember? Anyway, the -- it will be outsourced to China starting this fall. This company has been in Chicago, as I mentioned, for decades and decades. And some 40 jobs probably sent overseas along with that.

HEMMER: Symbolic, too. Thank you, Andy.

SERWER: Yes. You're welcome.

HEMMER: Soledad?

O'BRIEN: Jack, Question of the Day?

CAFFERTY: Thanks for reminding me. I got into so much trouble that day. Just one of many days.

SERWER: It's a good day for you.

CAFFERTY: The question: Does America need additional liberal media outlets? Prompted by the launch of Air America, the liberal radio network. We've been having a little fun at their expense here this morning.

We wish them well. We hope they don't take any viewers from AMERICAN MORNING, but except for that, we wish them well.

Here's some of what you said...

Don writes: "Yes, we do need purely liberal voices to counter Rush, Fox and sometimes CNN. The conservatives try to shout down any liberal thought as unpatriotic, sissy, stupid, immoral, et cetera. Give us a voice."

John in Willard, Ohio: "As long as we allow the right wing junky extremists to distort the truth on the air, why not allow the left wing comedians to distort the truth?"

And Bill writes from Theodore, Alabama: "We need more liberal media outlets like we need more lawyers, more 7-Eleven stores and more taxes."

SERWER: 7-Eleven stores?

O'BRIEN: I was going to say, we can leave the 7-Elevens...

SERWER: I've never thrown that in. Bring on the Slurpees.

CAFFERTY: Apparently they have a lot of them in Theodore, Alabama, where Bill lives.

SERWER: Not this Bill, though. CAFFERTY: No, no. Where is Willard, Ohio?

HEMMER: Northeast, I think.

SERWER: He's guessing.

O'BRIEN: Totally guessing. No idea.

HEMMER: No. I'm usually pretty good at this.

CAFFERTY: What kind of a name is that?

O'BRIEN: Oh, Billy. I love you so much. Thank you very much.

Coming up this morning on CNN, are the already high prices at the pump about to take another jump? A live report is coming up on "CNN LIVE TODAY" with Daryn Kagan.

AMERICAN MORNING is back in just a minute.

(COMMERCIAL BREAK)

HEMMER: We've got to run. You have a great vacation.

O'BRIEN: Thank you. I will.

SERWER: Have a great vacation, Soledad.

HEMMER: He was saying already how much he's going to miss you. And Andy, ditto.

O'BRIEN: Thank you, Jack. Thank you, Jackie.

SERWER: Uh-oh. That again.

CAFFERTY: We'll get together again soon.

HEMMER: Yes, we will.

O'BRIEN: Not too soon. Like a week and a bit.

SERWER: Stop it, you guys. Stop it.

CAFFERTY: It's so hard to be nice.


Aired March 31, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Blood flowing in the Sunni Triangle again this morning. One of the deadliest days for Americans in months.
Plans being made for Condoleezza Rice to go before the 9/11 Commission. Should she be asked about her efforts to discredit Richard Clarke?

And just a few minutes ago, OPEC makes the call that could have you paying higher prices at the gas pump.

We'll explain ahead on this AMERICAN MORNING.

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

BILL HEMMER, CNN ANCHOR: Nine o'clock here in New York. Welcome back, everyone. Good to have you with us today.

Other stories this hour: interesting one, too. We'll talk to a couple on vacation spotting a child and thought something was out of place. It led to a remarkable bit of detective work. We'll tell you that story in a moment.

O'BRIEN: Truly an amazing story. Kudos to the woman who did that.

Also this morning, Michael Jackson turned up in Washington, D.C., yesterday, for a meeting with members of Congress. What's on his mind? We're going to check in with Congressman Gregory Meeks, who's one of only a handful of representatives who really were willing to sit down with Michael Jackson.

HEMMER: Cafferty was not in that audience.

CAFFERTY: Did you ask what was on his mind? Now, if anybody could answer that question, that would be something to listen to, wouldn't you say?

O'BRIEN: He was talking about his efforts on AIDS in Africa, as Congressman Meeks will tell us in just a little bit.

CAFFERTY: I think he has other issues ahead of AIDS in Africa that may have concerned him.

Air America, the New liberal radio network, launches today at noon. Is this just what the country needs or not? AM@CNN.com is the e-mail address, and we're having a little fun with that this morning.

HEMMER: We are. Jack, thanks. Top stories now.

Word from Austria the OPEC oil cartel now formally approving a cut in production. Word from the OPEC ministers meeting in Vienna that a 4 percent cut in output has been agreed to, despite U.S. calls for a raise in production. The move comes with prices at the pump in this country at or near the record levels.

It's become a hot issue on the campaign trail. Senator John Kerry criticizing President Bush for pumping millions of barrels of oil into the nation's strategic petroleum reserve despite the high prices. The White House dismissing that argument, saying that filling the reserve to its maximum level is a matter of national security.

BP Oil Refinery back up and running today in a Texas city. The plant was evacuated yesterday near Houston after a fire caused by an explosion inside of a furnace. No injuries reported. An investigation has been started, but a company official says there does not appear to be any foul play. Again, southeastern Texas there.

Middle East now. Clashes broke out today in the Palestinian- controlled area of east Jerusalem. About 15 Israelis moved into the neighborhood today, prompting Palestinians to throw rocks. Israeli police and soldiers fired tear gas. More than a half-dozen taken into custody. Several police officers and Palestinians have reportedly been injured as a result.

Minneapolis, a judge there says begging is a form of free speech. The judge ruled that an ordinance on the books that prohibits begging is unconstitutional. The ordinance was challenged by a homeless man who was ticketed by police while begging drivers for money.

The judge said she saw little difference between begging for cash and soliciting money for charities. Again, that out of Minneapolis.

You're up to date now, 9:03.

O'BRIEN: An interesting legal interpretation, I think.

(WEATHER REPORT)

O'BRIEN: It has been another deadly day in Iraq. Five members of the American military were killed by a roadside bomb west of Baghdad near Fallujah. And in a separate incident in Fallujah, witnesses say a grenade attack on two vehicles there left four people dead, at least.

Earlier on AMERICAN MORNING, I spoke with Major General Ray Odierno. He is the commander of the 4th Infantry Division. He's recently back from Iraq. And I asked him if he thinks the violence there is getting worse.

(BEGIN VIDEOTAPE)

MAJ. GEN. RAY ODIERNO, COMMANDER, 4TH INFANTRY DIVISION: I think it has to do with desperation. I think that what they are trying to do is they want to influence the future government of Iraq.

They see it coming aboard. They see it making progress. They don't want that to happen. These people have everything to lose. What I would emphasize, it is a small percentage of the total population of the Iraqi people.

O'BRIEN: We've heard General Kimmitt make clear distinctions between insurgents and terrorists. Do you see those distinctions, and what exactly are the distinctions, and how do you change your battle plans for fighting each group?

ODIERNO: Well, again, while we were over there, every single day I would tell you we re-evaluated how things were going. Because of the successes we had, they would then change their tactics.

The insurgents are individuals who are what I always called nationalists that were really associated with they don't want any foreign individuals within Iraq. They want to take over control, continue to have power in Iraq. The terrorists are individuals who want to just conduct terrorism throughout the world, and they use Iraq as just one other forum to conduct that terrorism.

O'BRIEN: So of those two then, which do you think is the bigger threat right now in these hotspots, these areas in Iraq?

ODIERNO: I think in the hotspots it's still insurgents, for the most part. I think they are trying to influence the outcome of the government being turned over and the future government of Iraq.

I think the terrorists will continue to try to establish their base in Iraq in order to conduct attacks against western forces. However, I believe we've been able, so far, to interdict most of that, and I think we'll continue to try to do that.

O'BRIEN: I know that training an Iraqi Civil Defense Corps was a really big part of your mission, training the police as well. Are you finding that the police are -- or people that want to be members of the police force are still coming in, in spite of the attacks against them?

ODIERNO: I found -- I left about two weeks ago, Soledad. And up until that point, about a week before I left, we had an attack up in Kirkuk on a police station with a suicide bomber. And it killed about eight police officers.

The next day, we had 30 to 50 people who came forward who wanted to replace those eight police officers. Throughout we've had about a six to one ratio in the last three months here to join the Iraqi Civil Defense Corps or the police force.

The Iraqis want to move forward. The majority of Iraqis want to move forward. They understand democracy. They understand having their own choice, and they want to be a part of it. Unfortunately, we have these individuals who want to do everything they can to unhinge this because they have everything to lose in this battle in Iraq.

(END VIDEOTAPE)

O'BRIEN: That's Major General Ray Odierno joining us a little bit earlier on AMERICAN MORNING.

The total U.S. death toll in Iraq is now 600; 461 have died since President Bush declared on May 1 that major fighting was over -- Bill.

HEMMER: Also, the president changing his mind about allowing Condoleezza Rice to testify publicly. Thirty minutes ago, I talked with Democratic senator, Jay Rockefeller, about what he would like to hear from Dr. Rice.

(BEGIN VIDEO CLIP)

SEN. JAY ROCKEFELLER (D), INTELLIGENCE COMMITTEE: Was there any really fundamental difference between the terrorism plan that Clarke had drawn up for President Clinton in October, and then of 2000? And then the plan which Clarke had to wait for eight months before the president's cabinet, so to speak, ratified it. And that happen just one week before September 11. Was it really more or less the same plan?

(END VIDEO CLIP)

HEMMER: That's the one question Senator Rockefeller wants answered. Republican Senator Saxby Chambliss of Georgia, member of the Intelligence Committee as well, with us now from D.C.

Senator, welcome back here.

SEN. SAXBY CHAMBLISS (R-GA), INTELLIGENCE COMMITTEE: Good morning, Bill.

HEMMER: Thank you, sir. Senator Rockefeller just said what his pressing question is. What is yours?

CHAMBLISS: Well, the fact of the matter is, what Jay just said, Richard Clarke has already said there was no plan, that the Clinton administration had no plan for preventing terrorism. That there was no plan that was transferred to the Bush administration.

What I look to see from Dr. Rice is her version of exactly what was said relative to the focus of the Bush administration on terrorism. And I can tell you that there's a huge contradiction in what Richard Clarke said back in June of 2002 before the joint House Senate intelligence Committees and what he said in his book and what he said in his testimony the other day.

HEMMER: Well, take that just a step further, because Senator Rockefeller answered that same question. He said he saw no inconsistencies. Where do you see them, Senator?

CHAMBLISS: Well, I don't think there's any question. You don't have to be a Philadelphia lawyer to realize by reading the testimony from 2002 and reading the testimony from last week, there's a huge contradiction. The president of the United States was very focused from the very day he took office, and Mr. Clarke was a big part of the team that prepared him for the -- on the issue of terrorism.

HEMMER: I also asked Senator Rockefeller, I'll ask you the same way. Does this settle the argument when Condoleezza Rice appears or does it just push it forward more?

CHAMBLISS: No, absolutely not. I don't think anybody will be convinced who wasn't convinced before about the situation relative to the preparation and focus of the Bush team on terrorism. And that's the problem with commissions like this, Bill, that they really raise more questions than they will ever answer.

And it's unfortunate that these people who are -- have had family members as victims on September 11 are going to have their emotions to churn once again as we continue to go through this. But there will be more questions raised than answers given.

HEMMER: Let me pose this question to you and put it on the screen for our viewers to see. CNN-USA Today-Gallup poll, a question was about how they believe the Bush administration is handling terrorism, a key component this election year, security and the war on terror. Fifty-eight percent say now they approve of it. as compared to 65 percent, a dip back in December.

There's also suggestions today in the "L.A. Times" that Republicans on Capitol Hill were getting impatient. Impatient in the White House not to put Condoleezza Rice forward. Was that the case among your colleagues?

CHAMBLISS: Well, there's some frustration out there. I mean, I come from a very conservative state, and people in my state would ask me as I went home last week and talked with them, "You know, Condoleezza Rice has talked to every reporter out there. She's answered every question. I don't understand this separation of state."

You simply can't explain that to people. So I think there has been some frustration.

I think the White House has made the correct decision. And, you know, it's not just the correct decision to put Condoleezza Rice on the stand, so to speak, but it's also a positive decision when the president says Vice President Cheney and myself will answer any question the commission wants to ask us. That's not playing politics. That's wanting to get to the bottom of the issue and give the American public exactly what they are looking for, and that's the truth.

HEMMER: Well, Governor Kean says they'll hear that testimony within the next two weeks. So we'll await word now on exactly when that will take place.

Senator, thank you. Appreciate it.

CHAMBLISS: Sure, Bill.

HEMMER: Saxby Chambliss there in D.C. Appreciate it. O'BRIEN: Still to come this morning, call it a mother's instinct. You heard the story. A missing boy reunited with his mom after a chance encounter with some newlyweds far from home. That couple and the happy mother and the adorable little boy join us up next.

HEMMER: Also, what's behind the recent turmoil in the Tyco jury deliberations? Some insight in a moment when we hear from an alternate juror in that case.

O'BRIEN: And, also, what was the king of pop doing on Capitol Hill? The latest moves by Michael Jackson just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Barb Quinlan was vacationing in Belize when she had a feeling that something was just wrong. She spotted this 4-year-old Jake Clenney with his father at her hotel and she took a picture. When she got home, followed up, she found that Jake was, in fact, taken from his mom in Texas.

Jake is back with his mom now. Heather Clenney joins us. So do Barb Quinlans, Barb's fiance, Murray Kadel -- sorry Murray -- who is part of the detective duo in Belize.

Nice to see you.

Hey, Jake, you fine? You all right? I see you getting up, walking around a little bit. That's fine. If you want to get up and walk around, you're welcome to. We want you to be comfortable.

Thanks for coming in, guys. This is such a bizarre story.

So Barb, let's start with you. You were suspicious. You were on vacation in Belize at your hotel, and you see Jake with his dad. And you say you were suspicious. Why?

BARB QUINLAN, IDENTIFIED BOY: Because there was -- throughout the whole time that we saw him there, there was never a mom figure there. It was just David and Jake. And being that the main nationality on the island was either black or Hispanic, Jake was the only white boy, little white boy there the whole time.

O'BRIEN: People would say, OK, that's unusual. But you thought it was suspicious. I mean, you really took it to the next level. Was there anything that his dad was doing that made you say, there's something wrong with this picture?

QUINLAN: Just the fact that he never mentioned a wife, a mother.

O'BRIEN: You can see your mom on TV, can't you, Jake?

QUINLAN: He never mentioned a wife or mother or anything about Jake's mom.

JAKE CLENNEY, REUNITED WITH MOTHER: I can see you on TV.

O'BRIEN: You can see your mom on TV, can't you, Jake?

QUINLAN: He never mentioned a wife or a mother or anything about, you know, Jake's mom. And just seeing the two of them together day in and day out...

O'BRIEN: He didn't mistreat the boy in any way?

QUINLAN: No. And he was always up late at night.

O'BRIEN: One o'clock in the morning you'd see them in the hotel?

QUINLAN: Yes. Like 1100 in a bar. It was just not the right thing.

O'BRIEN: So it seemed so unusual. You decided to take a photograph. And you arranged to do this without the knowledge of Jake and his dad. And to do this you got your fiance into the act a little bit. Tell me a little bit about what you did.

QUINLAN: Well, he was sitting next to David, and I asked him to switch places with me. And I asked him to take a picture of me. It was a Super Bowl Sunday party and we had on a funny football hat. And I asked them to focus more on David and get his face.

O'BRIEN: So you pretended to take a picture of you...

QUINLAN: Exactly.

O'BRIEN: ... but actually, at the same time, you were taking a picture of the guy you were suspicious of.

Did you think your fiance was nuts, was crazy? What did you think at first?

MURRAY KADEL, FIANCE IDENTIFED BOY: Well, at first, when I found out he lived there with a 4-year-old boy. So we talked it over and thought it look a little suspicious.

O'BRIEN: You came back to the U.S., got online, and started searching on the Web site for the National Center for Missing and Exploited Children. What did you find?

QUINLAN: As I typed in a year missing, male, Houston, Texas, and I was scrolling down; there was only seven that were missing from there.

O'BRIEN: Because he said he was from Texas.

QUINLAN: Correct. He said he was from Houston, Texas. And as I was scrolling down, I saw Jake's picture.

O'BRIEN: What went through your mind at that moment?

QUINLAN: I screamed and called Murray and said, "It's Jake. It's Jake. It's him." You know, here's David. Because you click on view poster and there was his picture.

O'BRIEN: Heather, you get a call from a complete stranger who has done so much detective work. I cannot even imagine what that was like for you. What went through your mind?

HEATHER CLENNEY, JAKE'S MOTHER: I still have a hard time imagining, too. It was -- I couldn't believe it. I was -- you know, it's something you dream of every day. I'd go to sleep at night just waiting to hear something.

And if I happen -- I couldn't sleep. I lost sleep for several nights. I mean, I went through a month waiting.

O'BRIEN: Did you have any clue that Jake was with his dad in Belize?

CLENNEY: I had a clue who he was with. I just didn't have any idea where they'd be. I had no idea where they would wind up going.

O'BRIEN: What happens now? Jake's been reunited with you. And he's so cute. He's been wandering around the set a little bit, trying to play with some of our decor. We like that.

You like that, Jake. You can touch anything you want. What happens now to your ex-husband?

CLENNEY: All I know is he faces federal charges. So he's being -- they withheld bond. They wouldn't let him out on bond. So he's just facing charges.

O'BRIEN: How do you say thank you to somebody, to two people who have returned your child to you?

CLENNEY: I don't know how to begin to start saying thank you. It's just amazing. She's our angel sent from god. I mean, she brought my little boy back home.

O'BRIEN: How is he doing?

CLENNEY: Pretty good.

O'BRIEN: He looks pretty good. He looks pretty rambunctious. Looks kind of like a normal 4-year-old, doesn't he?

CLENNEY: That's him.

O'BRIEN: Well, Barb and Murray and Heather, thank you so much for coming in to talk to us.

CLENNEY: Thank you.

O'BRIEN: Congratulations to you. I mean, talk about an angel. Wow. What an amazing story.

Thanks for sharing it with us. We appreciate.

And, Jake, you're too cute. Thanks for coming in to talk to us.

Bill?

HEMMER: Yes, we like a story to end that way. Soledad, thank you.

In a moment here, Michael Jackson to Washington, bringing an important cause to Capitol Hill there. All this while a California grand jury considers his child molestation case back in Santa Barbara.

Back in a moment. More on that, and more here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: In a few minutes, the jury in the case of the former Tyco CEO, Dennis Kozlowski, starting 10th day of deliberations today. Kozlowski and another top Tyco official accused of looting the company of about $600 million, spending the money on lavish lifestyles.

One juror, who we're calling juror number four, is said to have flashed an OK sign to the defense attorneys last week. What's going on inside that jury room? We'd like to know, certainly.

Yesterday, in fact last night, I talked with an alternate juror, Darryl Barrett, who was with the sitting jury until it started deliberations. I asked him if he noticed any friction between juror number four and the others on that panel.

(BEGIN VIDEOTAPE)

DARRYL BARRETT, ALTERNATE JUROR: I seen her get into one of the jurors before. She had told one juror to shut up once before.

HEMMER: She did?

BARRETT: Yes.

HEMMER: Told another juror on this one occasion?

BARRETT: Yes.

HEMMER: Now, was that the only you ever saw this type of friction?

BARRETT: Other times other jurors may have gotten into it with her, but it was nothing serious.

HEMMER: Do you think the jurors right now -- it's a difficult question, I know -- are they going to be able to reach a verdict in this case?

BARRETT: I believe (UNINTELLIGIBLE). They're very strong. I believe they can do it.

HEMMER: Yes. If you were still on that panel, deliberating this, what would be your verdict?

BARRETT: It's hard to say. I'd have to weight it out with the rest of the jurors.

HEMMER: Well, what did you think of the prosecutor's case?

BARRETT: They have a strong case, but I don't see where they're 100 percent guilty.

HEMMER: Oh, really? So you're still undecided then at the point that you left?

BARRETT: Very undecided, yes.

HEMMER: All right.

(END VIDEOTAPE)

HEMMER: He explained that, too. Interesting after that interview. He said it seemed to him as if the board approved Dennis Kozlowski to use this $200 or $300 million to go out and buy these things, and that it also seemed to him that his attorneys were proving that he was paying the money back to the company. Which left him questioning whether or not he committed any wrongdoing.

That's one alternate juror, his opinion. So it might give us a bit of insight into what's happening there.

CAFFERTY: How would you like to be in that jury room after 10 days of those folks?

HEMMER: Six months, Jack.

CAFFERTY: No, I mean in the jury room, the deliberations.

HEMMER: Yes. That's been going on for six months.

CAFFERTY: They haven't been in there six months. They've only been in there 10 days.

O'BRIEN: Do the Question of the Day.

CAFFERTY: I'm trying to get along with everyone here this morning.

HEMMER: You are. Keep trying.

O'BRIEN: Do we need to hold hands and do "Kumbaya?"

CAFFERTY: No. I don't do that stuff.

Coming soon to cable TV and radio airwaves, The New York Observer reports former Vice President Al Gore is going to make a deal later this week to buy a cable TV channel. Gore's team says they'll take the station and make it into a "youth-oriented public affairs channel." It sounds pretty exciting. And the liberal talk radio network Air America debuts today at noon with Al Franken. He's going to call his show "The O'Franken Factor" after that guy up the street at the "F" word network.

So the question today is: does America need additional liberal media outlets? Getting some pretty good mail, actually.

Tracy in Port Royal, South Carolina: "You bet you your United States Constitution we need more liberal outlets. In the past few years, I've traveled our country coast to coast, border to border. It's difficult, if not impossible, in most areas in the United States to find radio stations with a decidedly liberal slant."

Dave in Nevada writes this: "Most media are balanced between the right-leaning owners and left-leaning reporters. Fox doesn't lean. It fell over a long time ago. But talk radio has been owned by the right. We do have a free enterprise media, so we'll let the listeners decide if Franken and company make it."

Mark in Bethany Beach, Delaware: "I do not feel we need any additional liberal media outlets. CNN is doing a great job already."

And Doug in Waco, Texas: "Every market I travel through has the major national and a minor league local version of the daily Republican pep rally. Radio today teaches us Republicans are good, you can lose weight while sleeping, Democrats are bad, and you can increase your penis size with a daily pill. So the answer is, yes."

Thank you, Doug. AM@CNN.com.

O'BRIEN: Just what I was thinking.

HEMMER: What do you think he had for breakfast?

O'BRIEN: Just what I was thinking, it couldn't get any worse.

CAFFERTY: Just the messenger here.

HEMMER: We were noting earlier 7:01:33 Eastern Time was the moment earlier today in which...

O'BRIEN: (UNINTELLIGIBLE), Jack Cafferty.

CAFFERTY: I'm sensing a certain hostility.

O'BRIEN: Not at all. I am so off tomorrow. In 33 minutes, I start...

CAFFERTY: Are you going to be away tomorrow?

O'BRIEN: Yes, I am.

HEMMER: Jeez.

O'BRIEN: Still to come this morning, the travel season right around the corner. There's time to save money, believe it or not. You can still enjoy it in style. But you've got to stick around for our "90-Second Tips" just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

O'BRIEN: And it's exactly half-past the hour on this AMERICAN MORNING.

Another bloody attack on troops in Fallujah today to report. Five soldiers killed in a roadside bombing. We're going to get you an update on that attack. Also, another attack to tell you about equally disturbing, this time involving civilians. Really a horrific thing.

HEMMER: Very much so. And there is some videotape there that we will not show, even the graphic content of it. Jim Clancy is standing by, and we'll get you there live in a moment.

Also, a much lighter note. Financial advice around the corner here. A guy that you want on your side when it comes time to saving money this morning.

We're talking about David Bach about how to get the most vacation bang for your buck. "90-Second Tips" up this next 30 minutes as well.

O'BRIEN: Top stories, though, first to begin with.

Plans now under way for National Security Adviser Condoleezza Rice to go before the September 11th Commission. President Bush announced yesterday that Rice would testify in public and under oath.

The president made the decision after getting a written guarantee that this would not set a precedent for future congressional investigations. The commission chairman, Tom Kean, says the panel is coordinating with the White House right now to set a date.

(BEGIN VIDEO CLIP)

THOMAS KEAN, CHAIRMAN, 9/11 COMMISSION: All the commissioners want to be there. So we want to get it around their schedules as well as her schedule. So (UNINTELLIGIBLE) too easy. We hope to do it in the next week, 10 days.

(END VIDEO CLIP)

O'BRIEN: The president and vice president are also planning to meet with the commission.

Democratic presidential candidate John Kerry will undergo shoulder surgery today. That means he won't be able to do much vigorous handshaking for a while. Senator Kerry's right shoulder was hurt last January during a sudden bus stop while he was campaigning in Iowa. Doctors say rotator cuff surgery takes only about 45 minutes and the senator is expected to be back on the road next week.

And three southbound lanes on Interstate 95 open again. Crews worked during the night to replace an overpass in Bridgeport, Connecticut. The lanes were shut a week ago because of a fiery crash there. Officials say the temporary bridge is safe, but they are urging commuters to stick with the 45-mile-an-hour speed limit.

(WEATHER REPORT)

HEMMER: From Iraq today, another deadly day there. Two separate attacks to talk about.

Witnesses say in one attack, a grenade in Fallujah on two vehicles leaving at least four dead there. Also, five members of the American military killed by a roadside bomb also west of Baghdad near the town of Fallujah. Jim Clancy on the scene there in Baghdad, reports now on both of those incidents.

Jim, hello there again. A bloody day on this Wednesday.

JIM CLANCY, CNN CORRESPONDENT: It certainly is, Bill. And a spike in casualties for the U.S. here. Nine, if they are counted altogether. Five of them were U.S. soldiers that were in a convoy.

A bomb apparently exploded under their vehicle, killing five U.S. soldiers. We don't have more details than that, but General Mark Kimmitt did give us more details on what happened in nearby Fallujah, a real hotbed for resistance to the U.S. occupation and the coalition forces' goals in Iraq.

There were four civilian contractors who were trying to make their way in a convoy of two cars. They were set upon with hand grenades, apparently igniting the vehicles. It is not known if the occupants were killed by the -- in the initial grenade attacks or by the gunfire that was sprayed into their cars to follow.

But crowds gathered very quickly. The whole scene became something of a nightmare.

Some of the charred bodies were dragged out through the streets. They were mutilated. There were other problems that were experienced there. And, yet, as we heard just a few minutes ago from General Kimmitt, there is not yet, or there may be just now arriving, U.S. forces on the scene. They may be working with Iraqi police to try to recover the bodies.

No more information available on that. But on this subject of Fallujah itself, a recurring problem for the U.S. military, here's what General Kimmitt had to say.

(BEGIN VIDEO CLIP)

BRIG. GEN. MARK KIMMITT, U.S. ARMY: Fallujah remains one of those cities in Iraq that just don't get it. It's a former Ba'athist stronghold. This was a city that profited immeasurably and immensely under the former regime.

They have a view that somehow the harder they fight the better chance they have of achieving some sort of restoreationist movement within the country. They fight. We work with them. It is a small minority of the people in Fallujah. Most of the people in Fallujah want to move on with their lives, want to move forward. Want to be part of the New Iraq.

(END VIDEO CLIP)

CLANCY: On those people who celebrated outside the burning cars, Dan Senor had this to say: he said, "Those aren't the people we came here to help."

Back to you, Bill.

HEMMER: Jim, if I could, quickly, he said a small number at work there in Fallujah. Can we define that number "small"?

CLANCY: Well, I don't think you can define it in strictest terms, but I think that you can say that it's probably in the low hundreds. Certainly, it doesn't take many people to carry out a number of attacks like this. And in recent days, we have seen a growing trend toward one vehicle, one group of occupants being involved in multiple incidents in the same day.

And all of this, all of these horrific scenes have to be weighed against something else that came out of the press conference today. More than 50 arrests, tens of thousands of dollars, hundreds of millions of dinars seized by coalition troops, along with huge arms caches. There's a lot going on, on both sides, but this incident is going to be burned in a lot of people's minds.

HEMMER: Indeed, it is. And some of that video too graphic for us to show. Jim Clancy, thanks, from Baghdad -- Soledad.

O'BRIEN: While a California grand jury decides whether Michael Jackson will stand trial for child molestation, the pop star is in Washington, D.C., promoting the fight against AIDS in Africa. Jackson has been meeting with members of the Congressional Black Caucus.

And earlier this morning, we were joined by Congressman Gregory Meeks. He was one of those who met yesterday with Jackson. And I asked him why he and 11 members of the Congressional Black Caucus agreed to the meeting when the rest of the caucus declined.

(BEGIN VIDEOTAPE)

REP. GREGORY MEEKS (D), NEW YORK: I am on the International Relations Committee, and I sit on the subcommittee for Africa. I understood going in that the conversation would be around HIV and AIDS, and what's taking place in Africa, and some of the accomplishments, as well as some of the future aspirations of Mr. Jackson in helping to eradicate the disease on HIV-AIDS. And so I went to listen to hear what he had to say and to do anything that I can to draw attention to the fact that we here, we sit comfortably, but have to make sure we eradicate that disease that is worse than the black plague ever was.

O'BRIEN: You say that it's always difficult to get all the members of the Congressional Black Caucus in one room. But, realistically, many of those members said that actually -- and they said this anonymously -- that actually there was no political upside for them to meet with Michael Jackson, considering the charges that are now pending against him. You didn't have those concerns?

MEEKS: No, again, I'm sitting here today, and we could talk, and I could talk a little about HIV-AIDS and what's taking place in Africa. You know, I've sat previously in my former profession as a prosecutor, so I understand what's taking place there; I'm not there to prejudge in the political part.

I'm here, though, to make sure that we live in a global world, that we can make sure that we begin to eradicate HIV and AIDS. And I want to do whatever I can and work with whomever I can to accomplish that goal.

O'BRIEN: What sorts of things are you hoping that Michael Jackson will be able to do for you? As you well know, his charity has had some serious financial troubles, and, in fact, has stopped making any kind of donations at this point. So what would you like him to do?

MEEKS: Well, at least according to what he stated to us at the meeting, you know, he wants to do things such as what he did with "We are the World," and trying to work with others that may be in Hollywood and other artists so that they can raise some funds. Again, via music, doing something similar to what Oprah Winfrey is doing now over in South Africa.

So I think just the attention, the attention that anyone can bring to the ravaging disease. Sometimes we get so comfortable here in America, that we -- we know that, you know, even our underbelly, AIDS is still there. So any time we can bring attention to it, any time we can talk about it, anybody that can, I think we should, because I think it's extremely important in this day and age in which we live in.

(END VIDEOTAPE)

O'BRIEN: Congressman Meeks of the Congressional Black Caucus talking with us earlier this morning.

Michael Jackson is planning a trip to Africa later this year to help in the fight against AIDS -- Bill.

HEMMER: In a moment here, how you pack for summer vacation. It's not too early to think about it.

O'BRIEN: Never too early.

HEMMER: It could make a difference when it comes to saving money. That's up in a moment.

O'BRIEN: Also, a toy that's just about as American as apple pie, but now is it part of a political battle? We'll take a look at that just ahead on AMERICAN MORNING. (COMMERCIAL BREAK)

O'BRIEN: Well, spring has sprung. So the time is right to plan and save for that summer vacation. In this week's edition of "90- Second Tips," personal finance contributor David Bach tells us how the early bird gets the deals.

Hey, nice to see you, as always. Thanks so much.

DAVID BACH, PERSONAL FINANCE CONTRIBUTOR: Good to see you, Soledad.

O'BRIEN: How much lead time do you realistically need to start saving enough money for your summer vacation?

BACH: It really depends on how much money you're going to spend on vacation. You know, there's sort of good news and bad news.

Our friends in Europe go on vacation up to two months a year. Here in the United States, you go on vacation for a week and a half. But that week and a half vacation can cost the average family $2,000, $3,000, $4,000.

O'BRIEN: At least.

BACH: At least. So really the thing to do is plan your vacation budget six months out. Create a vacation fund. That's what I teach in my books; that's what I teach in my seminar.

O'BRIEN: Next piece of advice: use credit cards to accrue cash -- to accrue and cash in on mileage points. And I know sometimes you are not a big fan of credit cards.

BACH: I'm not a big fan of using credit cards. But if you are responsible and you pay your credit cards off every month, and you have a rebate card, over the year you can get enough frequent flyer points to pay for the entire vacation. You know, get two or three free plane tickets, or you might even get a couple thousand dollars in cash back, depending on the card.

So the key is, make sure you are paying those credit cards off each month. But get those credit cards to work for you, to actually pay for your vacation.

O'BRIEN: What's the best way to plan for your vacation so that there are no surprises? So that you've stashed away the money, boy, you've put that $5,000 away and, oops, actually your vacation costs $6,500 with you and the four kids.

BACH: Well, I think one of the biggest things is to really read the fine print on your actual travel tickets. In other words, if someone tells you that this vacations is going to cost $2,000, does that include tax, local fees?

You know, when you go into a hotel, they tell you it's $150. But by the time you get your bill, there's an extra $50 in miscellaneous taxes. The same thing happens with rental cars. So ask your travel agent, or if you're doing it yourself, get all the fees up front so you really know what you are paying for.

O'BRIEN: You also say consider pre-planned vacation packages, because they essentially do that for you. They spell it out.

BACH: They do. And the nice thing about prepaid vacation packages is that everything is included. You can get the food, the hotel, the airline, the car, all in one package deal. And sometimes it's a very, very good price.

O'BRIEN: If you are flexible you actually can save a lot of money.

BACH: Yes. For example, right now, if you wanted to go skiing, there's a lot of snow right now in the mountains. But guess what? Nobody is skiing at the end of March, beginning of April. So when you travel on times that are maybe just two weeks away from the major time, you can get a trip as much as 50 percent off.

O'BRIEN: Practice the art of negotiation. Can you really bargain with people like travel agents and...

BACH: Oh, let me tell you....

O'BRIEN: I mean, can you go to the Ritz-Carlton and say I'm not paying $300 for a room. I'll pay $150.

BACH: Yes, yes and yes. And I'll give you my Ritz-Carlton story.

O'BRIEN: OK.

BACH: OK. I just went to the Ritz in Bachelor Gulch. It's a classic example of this.

I went online to the Ritz-Carlton. They didn't have any special deals for skiing. I then called directly and said, "Are you guys having any ski packages right now?" Well, it turned out they were.

I got a package rate that included my lift tickets that was half the price of the typical rack rate. So the rack rate was like $800. But I got my ski tickets and my room for less than that.

Then, when I got to the hotel, they had another special coupon inside one of their magazines. I went back to the manager and said, "Hey, you were advertising this price last month. Can I have the same price?" "Yes, Mr. Bach, we'll be happy to accommodate you."

O'BRIEN: That's not just because you're Mr. Bach and they can do that?

BACH: No, anybody really can do that. But you do have to spend time. And I spent about an hour shopping around. But can I tell you something, Soledad? That saved me $2,000 on that trip.

O'BRIEN: Wow. Totally worth it then. You also say stick to an itinerary?

BACH: Yes, stick to an itinerary. In other words, when you go on a vacation, a lot of times people all of a sudden make a change, believe it or not. They decide they're going to come back a day later or come back a day early.

That's how you get nailed. Those extra change fees on your airline tickets, your train tickets can add up to hundreds of dollars and increase the cost of your vacation by 20 or 30 percent.

O'BRIEN: Next piece of advice, bring, don't buy. I know what this is, and I am so bad at this. I land somewhere and I have to buy everything because I've forgotten my shampoo, my lotion. You know, everything.

BACH: You know when you go on the beach vacation and you forget your suntan lotion?

O'BRIEN: Always.

BACH: At Wal-Mart, suntan lotion's $2, right? But by the pool it's $19.95. It's the exact same suntan lotion.

So suntan lotion, shaving cream, razor blades, film, all the obvious things, stock up on that and take it with you before you go on that trip. You could save easily $100 on your vacation.

O'BRIEN: Yes. I would imagine at least $100.

And, finally, there's no place like home. Are you encouraging people to stay home for vacation? That's a fun vacation, camp out in your backyard?

BACH: Yes, but think about it. It really can be. And, again, using myself as an example here, last week we were supposed to go to Vermont. We stayed in New York City.

We did the things in New York City that people come here to do. We went to the museums, we visited some of the local areas. We went out to restaurants. Had a great week.

But people live in a lot of cities like New York where there's a lot to do. When people come into the town for that visit, they bring people to these locations, but they don't go to those locations when they are just living there.

O'BRIEN: Right. You never -- I went to the Empire State Building. I'm a New Yorker. I went to the Empire State Building two years ago, first time ever.

BACH: And guess what? That's free.

O'BRIEN: Yes, -- well, nothing's free. But it's not very expensive.

David Bach, as always, nice to see you. Thanks for some great tips.

BACH: Thank you, Soledad.

O'BRIEN: Appreciate it.

David Bach, of course, is America Online's money coach. His Web site is finishrich.com. David's here every Wednesday with tips on how you can improve your financial life.

Bill?

HEMMER: All right, Soledad. Thanks.

Still to come here, the little red wagon, a fixture for generations of Americans. Well, it's going a long way from home. Andy has that after this.

(COMMERCIAL BREAK)

HEMMER: Well, the trend of outsourcing American jobs overseas now includes even that little red wagon. That and a check of the markets. Andy Serwer is "Minding Your Business" with us now, 21 minutes into the day of trading.

Which way are we going?

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: South. Yes.

Markets folding back a little bit this morning. Let's check it out.

A lot of that has to do with what's going -- you see it down here 20 points on the Big Board. A lot of that has to do with what's going on with OPEC.

Earlier this morning, OPEC announcing they would be cutting back production by about 4 percent. That is sure to make oil prices continue to rise a little bit. Obviously, not very good news for the U.S. economy.

OPEC provides about a third of the world's oil. Eleven nations in that cartel. And the price of oil around $36 a barrel. If it goes to $40, that's a big psychological point that would really wreak even more havoc. Obviously, people not happy with the price of gasoline.

One stock moving northward, Bill, though, is Best Buy. They said they are selling a lot of consumer electronics. So that stock has been moving up.

But let's talk about outsourcing. I know we talk about this almost every day. This is a story we couldn't resist doing, though.

The Radio Flyer, the little red wagon, an American classic made in Chicago for over 70 years. There it is. Bumping up and down, Bill, in my little red wagon. No, Barney did not write that song. That's a folk song, by the way. It will be shipped to China. They're going to be making them in China starting -- that's a great...

CAFFERTY: There's the construction crew.

SERWER: Senior executives at a certain network, Jack, remember? Anyway, the -- it will be outsourced to China starting this fall. This company has been in Chicago, as I mentioned, for decades and decades. And some 40 jobs probably sent overseas along with that.

HEMMER: Symbolic, too. Thank you, Andy.

SERWER: Yes. You're welcome.

HEMMER: Soledad?

O'BRIEN: Jack, Question of the Day?

CAFFERTY: Thanks for reminding me. I got into so much trouble that day. Just one of many days.

SERWER: It's a good day for you.

CAFFERTY: The question: Does America need additional liberal media outlets? Prompted by the launch of Air America, the liberal radio network. We've been having a little fun at their expense here this morning.

We wish them well. We hope they don't take any viewers from AMERICAN MORNING, but except for that, we wish them well.

Here's some of what you said...

Don writes: "Yes, we do need purely liberal voices to counter Rush, Fox and sometimes CNN. The conservatives try to shout down any liberal thought as unpatriotic, sissy, stupid, immoral, et cetera. Give us a voice."

John in Willard, Ohio: "As long as we allow the right wing junky extremists to distort the truth on the air, why not allow the left wing comedians to distort the truth?"

And Bill writes from Theodore, Alabama: "We need more liberal media outlets like we need more lawyers, more 7-Eleven stores and more taxes."

SERWER: 7-Eleven stores?

O'BRIEN: I was going to say, we can leave the 7-Elevens...

SERWER: I've never thrown that in. Bring on the Slurpees.

CAFFERTY: Apparently they have a lot of them in Theodore, Alabama, where Bill lives.

SERWER: Not this Bill, though. CAFFERTY: No, no. Where is Willard, Ohio?

HEMMER: Northeast, I think.

SERWER: He's guessing.

O'BRIEN: Totally guessing. No idea.

HEMMER: No. I'm usually pretty good at this.

CAFFERTY: What kind of a name is that?

O'BRIEN: Oh, Billy. I love you so much. Thank you very much.

Coming up this morning on CNN, are the already high prices at the pump about to take another jump? A live report is coming up on "CNN LIVE TODAY" with Daryn Kagan.

AMERICAN MORNING is back in just a minute.

(COMMERCIAL BREAK)

HEMMER: We've got to run. You have a great vacation.

O'BRIEN: Thank you. I will.

SERWER: Have a great vacation, Soledad.

HEMMER: He was saying already how much he's going to miss you. And Andy, ditto.

O'BRIEN: Thank you, Jack. Thank you, Jackie.

SERWER: Uh-oh. That again.

CAFFERTY: We'll get together again soon.

HEMMER: Yes, we will.

O'BRIEN: Not too soon. Like a week and a bit.

SERWER: Stop it, you guys. Stop it.

CAFFERTY: It's so hard to be nice.