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Negotiations for Ceasefire in Fallujah; Pope Celebrates Good Friday; White House Declassifying Contentious Document; Will Tiger Make the Cut?

Aired April 09, 2004 - 11:00   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.


DARYN KAGAN, ANCHOR: Let's take a look at the latest developments we're following at this hour.
A loud explosion rattled central Baghdad. It was heard in the area around the Sheraton Hotel. The explosion is believed to have been caused by a mortar fired into the area. There have been no reports so far of injuries.

Here in the U.S., the White House responds to a request by the 9/11 commission following Condoleezza Rice's testimony. The administration is working to declassify an intelligence memo given to President Bush in August of 2001. Rice says the memo was a historical document, not a specific warning about the impending terrorist attacks.

U.S. soldiers pulled down pictures of a radical Muslim cleric in Iraq. This action comes a year after the toppling of Saddam Hussein's statue in Baghdad. That symbolized the end of his regime. A year later, U.S. forces are battling armed followers of cleric Moqtada al- Sadr and Iraqi insurgents in the Sunni Triangle.

The terror suspects who blew themselves up in Spain left behind a videotape vowing blood for blood. That tape warns Spain to withdraw its troops from Iraq and Afghanistan. It was found in the rubble of an apartment building where some of the Madrid bombing suspects set off explosives, killing themselves.

Pope John Paul II began Good Friday services at the Vatican by hearing confessions. He also presides over an afternoon service. For Catholics and other Christians, Good Friday commemorates the crucifixion of Jesus. Security has been increased at the Vatican during the period leading up to Easter Sunday.

It is 11 a.m. on the East Coast, 8 a.m. on the West Coast. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.

It was one year ago today the statue of Saddam Hussein came down in Baghdad, symbolizing the end of his brutal regime. Today U.S. troops are still engaged in fighting, trying to put down an uprising by insurgents.

At the site where Saddam's statue stood, American troops were back on their ladders today. And this is what they were doing, pulling pictures of Shiite cleric Moqtada al-Sadr. He is blamed for much of the current violence. The military is warning it will not tolerate any violent demonstrations in the square today. People with weapons, the military says, will be shot.

Now let's look at some numbers, trying to demonstrate the ongoing nature of the war. Fifty-four U.S. troops were killed in the period between March 20 to March 28 last year. This year in a similar time frame, 50 Americans have lost their lives. These statistics coming from the Pentagon.

A pause in Fallujah, an explosion in Baghdad. Our Jim Clancy is joining us from the Iraqi capital with all of this breaking and developing news.

Jim, first let's start with the explosion you heard just minutes ago.

JIM CLANCY, CNN CORRESPONDENT: Well, Daryn, I think that what we should report first is the fact we can confirm there were no casualties.

This is a suspected 120-millimeter mortar that was fired by suspected insurgents. It hit a tennis court in the sporting club that is just adjacent to the Sheraton Hotel, just across, not even 100 meters from where I'm standing right now.

And it was a thunderous roar because we were so close to it. But at the same time, we're glad to report that there was no significant damage. And of course, no injuries in that.

It was expected, really, that insurgents would in one way or another want to target the specific area of Baghdad on this specific day to underline their point that, in one year, the U.S. has not been able to bring stability and security for Iraqis to their country.

And it is a sore point with Iraqis themselves. Some Iraqis will say they want the U.S. out. Others will say they want the U.S. to handle the situation, to go in and get the insurgents and put an end to it.

But what all Iraqis agree on is they want this violence, they want the killing to come to an end.

Well, the killing, if you will, almost came to an end in Fallujah today when the U.S. announced that it was going to have a unilateral cessation of offensive operations in that city, part of a brokered deal with a member of the governing council here. Also some of the local city leaders in Fallujah, tribal leaders, religious leaders.

And hopefully, there are talks that have gone on this day where they could discuss some of the common grounds for perhaps ending that military operation, if the U.S. can get some kind of assurances that it needs that the insurgents are going to back off, perhaps surrender their arms. We don't know what the details of the talks are.

We did talk with General Kimmitt, though, earlier, and he told us that the situation is one of where we've been watching over the past week. We've been looking at all of these pictures that have been coming in of the fighting in Fallujah.

And you have to understand that, the U.S. military knows it is very small number of people in Fallujah that have been launching these attacks that killed the four U.S. civilian contractors in Fallujah a week ago Wednesday and that there is a city of more than 300,000 people there that have been paying the price for it.

This allows them to get in food, medical aid, blood, water, other things that they need right now. It also allows them to tend to their dead and wounded. There have been a lot of casualties. The director of the hospital there estimates 300 people killed, 400 wounded in the last six days of violence.

Meantime, and I think you were talking just a short while ago with a U.S. military commander who had just returned from Kut, U.S. forces engaging elements of the al-Mehdi Army. Now this is a Shia militia that is working for Moqtada al-Sadr, a young Shia militant, who wants U.S. forces to pull back from the cities, release all of their prisoners, including his top aide, who was wanted for murder.

And he has been pressing his fight here in Baghdad in Shia neighborhoods in Sadr City, also across the south, U.S. military moving aggressively to counter that and to neutralize him.

At the same time, we are hearing reports that other militias, like the Badr (ph) brigades, also a Shia militia, may have been engaging al-Sadr's forces, his al-Mehdi Army down there. And a lot of residents not happy about what's happening.

One of the crucial questions in all of this was whether Moqtada al-Sadr could lead the majority Shia in this country into a conflict, a confrontation with the coalition.

And clearly, the word that we are getting from the south today, from our own sources and what we heard from the general in your interview is that he cannot, that he's got too much opposition. His military, his al-Mehdi Army just too ill-disciplined for people there to tolerate. And they would like him to get off of the streets.

So that may be a success story in the making for the U.S. Still, too early to tell.

A lot of people in Iraq a year after Saddam Hussein was toppled, wondering about their future, uncertain about that, certain about one thing: that the security situation needs a lot of improving -- Daryn.

KAGAN: Real quickly I need to ask you some of the most disturbing images we saw from yesterday included the hostages, the civilian hostages that were taken, a number of different nationalities. Anything new on those hostages in captivity and any word of new hostages taken today?

CLANCY: Well, unfortunately nothing new on the hostages that we believe are already in the hands of unknown individuals or groups. We do have reports that more hostages have been taken. There are reports that two Italians, two Americans and two others of a nationality we don't yet know, were taken hostage today.

But let me caution on that one, Daryn, a little bit. Because sometimes people are taken, they can be held for seven, eight hours or even longer, and then they will be released.

So right now, what we believe is there have been another instance of armed militiamen taking foreigners, taking outsiders that may have been traveling on the roads. They may be holding them as hostages. They may be questioning them and they're going to release them. We'll just have to wait and see on that front. But it is a disturbing development.

KAGAN: All right. We'll be checking back with you live from Baghdad. Our Jim Clancy in the Iraqi capital with all those developments. Thank you, Jim.

Let's get a look now at the big military picture in Iraq today. For that we bring in General George Harrison, retired from the U.S. Air Force.

General, thanks for staying with us throughout this breaking news and developing news.

Let's look forward into the weekend. We are talking about this holy Muslim holiday of Arbaeen. It means a lot of people on the move. Using our map, where are people going and what's the significance?

GEN. GEORGE HARRISON, U.S. AIR FORCE (RET.): Well, people are going to Karbala and Najaf. The significance is that this is the first celebration of this holiday in probably the 30 years since Saddam Hussein took charge of the country of Iraq.

KAGAN: We did see a little bit of movement last year...

HARRISON: A little bit last year.

KAGAN: ... because things had eased a little bit. But nothing like the freedom that people will be able to enjoy this year.

HARRISON: That's right. And this is a major holiday in the Shia sector, the Shia portion of the Muslim religion.

So we'll see a lot of people moving. We heard an estimate from General Kimmitt of about 1.2 million, which is a big crowd of people. It presents a tremendous security problem, but at the same time, it presents a tremendous opportunity for the coalition forces and the emerging provisional Iraqi government.

If this pilgrimage can be secured and guaranteed, if religious freedom in this context can be guaranteed, this is really a great step forward for the overall situation in Iraq.

KAGAN: So opportunity, perhaps, for things to flare up. HARRISON: Sure.

KAGAN: Or perhaps a great selling point about what could be happening for Iraq.

HARRISON: That's right.

KAGAN: Let's move north and talk about Fallujah, or what is taking place there. An unusual military step, the U.S. military saying, "You know what? We're going to cool it for a little bit here and let some other things take place."

HARRISON: Well, I think very important in Fallujah, obviously there's a lot of suffering. We've heard reports of 300 casualties just now from Jim Clancy.

A very bad situation for Iraqis, for the citizens who are not involved in either the insurgency or support of the coalition forces particularly. They're the punished bystanders.

And I think the withdrawal, the cessation of active combat operations in Fallujah, is a recognition of the difficulty that they're going through.

Now the other part of that is the incredibly rapid response of the coalition military. They demonstrated flexibility, quick deployment, overnight deployment.

And we heard a really outstanding recognition of the cultural shift that's taking place in the Iraqi forces.

As they shift from an atmosphere of intimidation under Saddam Hussein where they held a population with an iron fist, to an atmosphere more like we'd be comfortable with in the United States where the police provide a benevolent presence in most situations.

KAGAN: But still a long way to go.

HARRISON: Yes.

KAGAN: There's a nice balance between benevolent presence and a military that can hold its own...

HARRISON: That's right.

KAGAN: ... and a police force that can hold its own when things flare up.

Want to get back to the breaking story that happened just about an hour ago. We were watching the aftermath of this explosion taking place in Baghdad. We believe it was a mortar shell fired into the Ishtar Sheraton Hotel in central Baghdad.

We have a keyhole map to give you a better idea of what we're talking about. So here, we're way out in outer space, and you have Baghdad. We're going to zoom in now. And you can see on the left side of your screen, that's the Green Zone.

HARRISON: That's correct.

KAGAN: And General, you talk a little bit about what the Green Zone is and the significance in terms of safety.

HARRISON: That's right. It's the place where the majority of the official coalition presence is located, where the nucleus of the new Iraqi government will be located.

And it's really a place where security really has to be guaranteed. Except, of course, for these things that are fired from outside, like mortars, rockets, all those kinds of harassment devices.

KAGAN: As you were pointing out, Baghdad, a huge city of five million people, a metropolis.

As we move the keyhole, again, to the right side of the river, you're going to see the square. That, of course, is significant. One year ago today the fall of Baghdad. This is where the statue of Saddam Hussein...

HARRISON: That's right.

KAGAN: ... did stand, was toppled, first with the American flag over it, then toppled over.

Today, we saw two things. We saw the ripping down of posters of Moqtada al-Sadr, the radical Shiite cleric. But also, this is right where the Sheraton Hotel stands.

HARRISON: Exactly.

KAGAN: And this is what was fired upon. Now, you're looking this, you are trying to explain to us the delivery system of how you would even fire a mortar, a 120 millimeter mortar.

HARRISON: A mortar is simply a tube. And it -- The mortar shell contains its own propellant. You drop the mortar into the tube. You change the location or the azimuth (ph) and elevation of the tube to get a particular impact point.

Now this may have been a lucky shot or it may have been a well- measured, well rehearsed, carefully planned shot. The range of the mortar could be up to three or four miles. So sterilizing an area three or four miles around that hotel would be almost impossible.

KAGAN: Almost impossible.

And the important news, of course, as Jim Clancy pointing out, at this point...

HARRISON: No casualties. KAGAN: ... no casualties. They might have gotten what they think is a lucky shot into the hotel, but they didn't hit any of the journalists or private contractors who might be staying there.

HARRISON: Right.

KAGAN: That is the good news there.

Don't go far.

HARRISON: OK.

KAGAN: I'm sure we'll have more news coming out of Iraq. The general is going to stay with us.

Meanwhile, there's a lot more news to get to.

And of course, this is Good Friday. Our Allessio Vinci is standing by at the Vatican, talking about a frail pope John Paul II. He is observing Good Friday, the day that Christians soberly remember for the crucifixion of Jesus.

The pope is now presiding at the traditional passion service at St. Peter's basilica. He is recalling the last hours of Christ. Later he'll mark the way of the cross at Rome's coliseum.

Allessio Vinci, not in the Vatican, I'm told, but in Rome -- Allessio.

ALLESSIO VINCI, CNN CORRESPONDENT: Hello, Daryn.

Indeed, this is the most solemn day in the Christian calendar, Good Friday, when Catholics commemorate the day that Jesus was crucified.

At this time inside of St. Peter's basilica, Pope John Paul II presiding over a ceremony with -- in front of thousands of pilgrims, as well as many church officials, including cardinals who were expected at some point to read out portions of the gospel recounting those final moments of Jesus.

The pope just attending, presiding over the ceremony but not expected to read or deliver any kind of blessing or speech at this time. Later in the day, he will move across town to the coliseum, where despite his frail health, he will preside over the way of the cross, which is pretty much again a procession reenacting or representing the final hours of Jesus.

He -- this procession will be led by cardinals, and pilgrims behind will follow, chanting and praying.

The pope, as has been the case in recent years, will not be able to carry the cross himself, as he used to do. But he nevertheless is expected to deliver a blessing at the end of that procession.

These are really demanding times for the pope who, despite his fail health, insists on wanting to participate and preside over those church events.

He has appeared in relatively good form lately. Last night, for example, he presided over first ceremony commemorating the Last Supper. This morning, at the St. Peter's basilica, John Paul II heard confessions of ordinary Catholics.

And again, then today, a demanding evening for the pope, who will move across town.

It's quite unusual for the pope these days to move away from the Vatican. His frail health really, especially his Parkinson's Disease, prevents him from moving around on his own. He's using a wheelchair to move around. Vatican officials are really trying to do all that they can in trying to facilitate his participation to all these events.

But the pope really wanting to mark this very important week in the Christian calendar by presiding over all of the ceremonies.

KAGAN: Allessio Vinci joining us from Rome. And we will have more from Rome and the Vatican just ahead.

Also, we're going to check back in in Baghdad and Iraq. If you're with us, we've been following the breaking news, the Sheraton Hotel fired upon by a mortar. No casualties reported. This is a hotel that houses journalists and private contractors, as well. We'll be checking back with Jim Clancy.

Also looking at the overall military situation in Iraq. We'll be back in a moment.

(COMMERCIAL BREAK)

KAGAN: We are not going to get far from the story that is developing out of Baghdad. And that is the explosion at the Sheraton Hotel in central Baghdad.

This is the one-year anniversary of the toppling of not just -- the falling of Baghdad, but also the toppling of that statue of Saddam that stood very close to the Sheraton Hotel.

No word of any casualties in that explosion. But we'll be back with Jim Clancy not too long from right now.

Meanwhile, let's get other news in from right here in the U.S.

The Bush administration saying it will declassify a document that is part of the 9/11 investigation. The intelligence memo was the subject of debate, if you were listening to Condoleezza Rice's testimony before the 9/11 commission; you saw it live right here on CNN.

The White House says it is working on making that memo public.

Jeanne Meserve joins us with details about what is in the memo and when we might get a look at it. Jeanne, good morning.

JEANNE MESERVE, CNN CORRESPONDENT: Daryn, we could get that document as early as today. White House officials say they want it in the public domain, because they fear it may have been distorted or taken out of context.

(BEGIN VIDEOTAPE)

MESERVE (voice-over): The presidential daily brief of August 6, 2001, figured prominently in Rice's appearance before the 9/11 commission. Because the administration believed that summer that any terrorist attack would likely be overseas, even the PDB's title provoked a tough exchange.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISOR: I believe the title was "Bin Laden Determined to Attack Inside the United States." Now the...

RICHARD BEN-VENISTE, 9/11 COMMISSION MEMBER: Thank you.

RICE: ... the PDB. No, Mr. Ben-Veniste, you're not...

BEN-VENISTE: I want to get into...

RICE: I would like to finish my point here.

BEN-VENISTE: I didn't know there was a point.

RICE: You asked me whether or not it warned of attacks.

BEN-VENISTE: I asked you what the title was.

RICE: You said did it not warn of attacks. It did not warn of attacks inside the United States. It was historical information based on old reporting. There was no new threat information.

MESERVE: But Rice disclosed the brief mentioned 70 FBI investigations into al Qaeda cells in the U.S., and the possibility of hijacking.

BOB KERREY, 9/11 COMMISSION MEMBER: That the FBI indicates patterns of suspicious activity in the United States consistent with preparations for hijacking. That's what -- that's the language of the memo that was briefed to the president on the 6th of August.

RICE: And that was checked out. And steps were taken through FAA circulars to warn of hijackings.

MESERVE: But Rice said she had never been briefed on the use of planes as missiles, though intelligence agencies had warned of the danger as early as 1995.

Rice denied claims by her former counterterrorism aide Richard Clarke that the Bush administration under reacted to al Qaeda the summer before 9/11, saying the government was on full alert. At least one panel member was skeptical.

JAMIE GORELICK, 9/11 COMMISSION MEMBER: Have you actually looked at the list of messages that the FBI put out?

RICE: Yes.

GORELICK: To me, and you're free to comment on them, they are feckless. They don't tell anybody anything. They don't bring anyone to battle stations.

(END VIDEOTAPE)

MESERVE: Rice blamed 9/11 on intelligence failures, which she said were brought about by structural problems within the U.S. government. Those have been much discussed since the 9/11 attack.

The commission will be taking a closer look next week when they hear from Attorney General John Ashcroft and the directors of the CIA and the FBI.

Daryn, back to you.

KAGAN: And Jeanne, since you're there at the White House, let's ask you: any update on when President Bush and Vice President Cheney will appear together before the commission?

MESERVE: Daryn, I have nothing for you on that. So sorry.

KAGAN: All right. Jeanne Meserve at White House. Thank you for the latest on Condoleezza Rice and the classified document possibly coming out very soon.

Tiger in trouble. He is making the cut at Augusta this morning. Of course, we're lightening things up quite a bit right now. Second round gets under way at the Masters.

Our sports correspondent Josie Burke, joining us from Augusta National. Josie, giving up a much-needed break after all the intense news that we have had.

Take us among the azaleas, please, young lady.

JOSIE BURKE, CNN SPORTS CORRESPONDENT: I'm happy to give you that break.

And you know, the big question swirling around Augusta here when the Masters started was what's wrong with Tiger Woods? And with his play so far, he hasn't really done anything to quiet those questions.

I can give you an update right now. He started his second round. He is still three over par for the tournament. But he really dug himself quite a hole yesterday when he started out.

He shot a 40, a four over par, on the front nine yesterday. He only made it through 14 holes. He had to then finish up his first round this morning. He actually birdied No. 15, which his was first hole this morning. And that was his first and only birdie to this point.

So those questions about what's wrong with Tiger Woods, they'll persist as he really has to fight to try to make the cut. He was in a similar situation last year and ended up making the cut. We'll keep our eye on him and also Arnold Palmer, making his final Masters appearance today -- Daryn.

KAGAN: Josie burke at Augusta, Georgia, Augusta National. T hank you so much for that.

Affordable health care? One state is working to bring down the cost of prescription drugs. We're talking to the governor of New Hampshire, Craig Benson. He'll be with us to talk about what he is doing when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

KAGAN: New Hampshire is going against a federal mandate, becoming the fourth state to endorse cheaper prescription drugs from Canada. The state's official web site links citizens to an online Canadian pharmacy.

Governor Craig Benson joins us From Manchester this morning.

Governor, good morning. Thanks for being with us.

GOV. CRAIG BENSON, NEW HAMPSHIRE: Good morning, Daryn. Good to be here.

KAGAN: Let's go ahead, check out the web site. Explain to us how it works for citizens of New Hampshire, and why has it come to this?

BENSON: Well, people can't afford their prescription drugs in my state and many other states throughout the country. And yet, right across the border -- and we border Canada -- you're able to buy the exact same drugs from the exact same manufacturers for half as much or even less.

And I just think it's wrong and there's ways in which we can allow our citizens to reach out to those drugs and get what they need.

KAGAN: Now, is your earpiece OK there?

BENSON: Yes.

KAGAN: OK. You say the exact same drugs. But the FDA has come out very strongly with great concern about the safety issues of drugs that are purchased in Canada.

You also have the pharmaceutical industry understandably concerned here in the U.S. about safety and calling safety into question, saying there's no oversight agency that's looking over drugs in Canada like the FDA does here in the U.S.

BENSON: Well, Canada health does look over drugs in Canada. And you know, the life expectancy in Canada is longer than here in the United States.

The site that we've picked for New Hampshire and done a survey of is a very, very reputable company, growing very rapidly: has about 200 employees, and more than that, has much more oversight in the way they fill the prescriptions that we do even here in the United States.

I personally bought drugs from Canada and drugs from here in New Hampshire and sent them to our state lab for evaluation. And they were found to be the exact same, except for the fact that Canada actually ships the products in the original manufacturers' containers with the seal of the manufacturer on it. So that's even more safe than what we do here in the United States.

KAGAN: If you don't have any safety concerns, about what the issue potentially, Governor, that you could be breaking the law? The FDA also saying that all parties who cause a prohibited act can be found civilly and criminally liable. Have you considered that?

BENSON: Well, you know, I happen to think that there's a number of citizens in my state that can't afford their prescription drugs, are going without food so they can, or going without heat. They're taking half the drugs they need or cutting their pills in half.

You know, I have a responsibility to them, too, to do what's right for their health. And they deserve a good quality of life.

And so if this is the side I'm on, this is the side that I think I would choose to be on, because I can get up and look myself in the mirror in the morning and say we're doing the right thing for our citizens.

KAGAN: Not to take away from the suffering, especially the senior citizens of New Hampshire and the difficult situation that people are facing, not in your -- just your state but across the country, but isn't there a problem with a governor of a state decides, "Well, I'm going to enforce these laws, and these I'm not."

It sounds kind of like the chief justice down in Alabama deciding about the Ten Commandments.

BENSON: Well, I took an oath to the constitution of the state of New Hampshire. And nowhere did we say we cannot buy drugs from Canada.

What I also took an oath is to protect the rights and privileges of those in the state. And I think I'm upholding that right by getting people the drugs they need to enjoy their life.

You know, we have a lot of break-throughs in this world. And unfortunately, the drug companies have chosen to charge much higher prices for those exact same products here in the United States than any other country in the world.

It seems to me if we have a worldwide market, we should be able to buy the products we want from the places we think are best. And the state of New Hampshire's gone out and done a lot of work and research into finding good, affordable prescription drugs at places that we can do business with that are safe. And allow people to live that life that they choose to live.

KAGAN: Finally, have you heard anything from the federal government about taking down the web site?

BENSON: The FDA has written us a letter, prior to the...

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


Aired April 9, 2004 - 11:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, ANCHOR: Let's take a look at the latest developments we're following at this hour.
A loud explosion rattled central Baghdad. It was heard in the area around the Sheraton Hotel. The explosion is believed to have been caused by a mortar fired into the area. There have been no reports so far of injuries.

Here in the U.S., the White House responds to a request by the 9/11 commission following Condoleezza Rice's testimony. The administration is working to declassify an intelligence memo given to President Bush in August of 2001. Rice says the memo was a historical document, not a specific warning about the impending terrorist attacks.

U.S. soldiers pulled down pictures of a radical Muslim cleric in Iraq. This action comes a year after the toppling of Saddam Hussein's statue in Baghdad. That symbolized the end of his regime. A year later, U.S. forces are battling armed followers of cleric Moqtada al- Sadr and Iraqi insurgents in the Sunni Triangle.

The terror suspects who blew themselves up in Spain left behind a videotape vowing blood for blood. That tape warns Spain to withdraw its troops from Iraq and Afghanistan. It was found in the rubble of an apartment building where some of the Madrid bombing suspects set off explosives, killing themselves.

Pope John Paul II began Good Friday services at the Vatican by hearing confessions. He also presides over an afternoon service. For Catholics and other Christians, Good Friday commemorates the crucifixion of Jesus. Security has been increased at the Vatican during the period leading up to Easter Sunday.

It is 11 a.m. on the East Coast, 8 a.m. on the West Coast. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.

It was one year ago today the statue of Saddam Hussein came down in Baghdad, symbolizing the end of his brutal regime. Today U.S. troops are still engaged in fighting, trying to put down an uprising by insurgents.

At the site where Saddam's statue stood, American troops were back on their ladders today. And this is what they were doing, pulling pictures of Shiite cleric Moqtada al-Sadr. He is blamed for much of the current violence. The military is warning it will not tolerate any violent demonstrations in the square today. People with weapons, the military says, will be shot.

Now let's look at some numbers, trying to demonstrate the ongoing nature of the war. Fifty-four U.S. troops were killed in the period between March 20 to March 28 last year. This year in a similar time frame, 50 Americans have lost their lives. These statistics coming from the Pentagon.

A pause in Fallujah, an explosion in Baghdad. Our Jim Clancy is joining us from the Iraqi capital with all of this breaking and developing news.

Jim, first let's start with the explosion you heard just minutes ago.

JIM CLANCY, CNN CORRESPONDENT: Well, Daryn, I think that what we should report first is the fact we can confirm there were no casualties.

This is a suspected 120-millimeter mortar that was fired by suspected insurgents. It hit a tennis court in the sporting club that is just adjacent to the Sheraton Hotel, just across, not even 100 meters from where I'm standing right now.

And it was a thunderous roar because we were so close to it. But at the same time, we're glad to report that there was no significant damage. And of course, no injuries in that.

It was expected, really, that insurgents would in one way or another want to target the specific area of Baghdad on this specific day to underline their point that, in one year, the U.S. has not been able to bring stability and security for Iraqis to their country.

And it is a sore point with Iraqis themselves. Some Iraqis will say they want the U.S. out. Others will say they want the U.S. to handle the situation, to go in and get the insurgents and put an end to it.

But what all Iraqis agree on is they want this violence, they want the killing to come to an end.

Well, the killing, if you will, almost came to an end in Fallujah today when the U.S. announced that it was going to have a unilateral cessation of offensive operations in that city, part of a brokered deal with a member of the governing council here. Also some of the local city leaders in Fallujah, tribal leaders, religious leaders.

And hopefully, there are talks that have gone on this day where they could discuss some of the common grounds for perhaps ending that military operation, if the U.S. can get some kind of assurances that it needs that the insurgents are going to back off, perhaps surrender their arms. We don't know what the details of the talks are.

We did talk with General Kimmitt, though, earlier, and he told us that the situation is one of where we've been watching over the past week. We've been looking at all of these pictures that have been coming in of the fighting in Fallujah.

And you have to understand that, the U.S. military knows it is very small number of people in Fallujah that have been launching these attacks that killed the four U.S. civilian contractors in Fallujah a week ago Wednesday and that there is a city of more than 300,000 people there that have been paying the price for it.

This allows them to get in food, medical aid, blood, water, other things that they need right now. It also allows them to tend to their dead and wounded. There have been a lot of casualties. The director of the hospital there estimates 300 people killed, 400 wounded in the last six days of violence.

Meantime, and I think you were talking just a short while ago with a U.S. military commander who had just returned from Kut, U.S. forces engaging elements of the al-Mehdi Army. Now this is a Shia militia that is working for Moqtada al-Sadr, a young Shia militant, who wants U.S. forces to pull back from the cities, release all of their prisoners, including his top aide, who was wanted for murder.

And he has been pressing his fight here in Baghdad in Shia neighborhoods in Sadr City, also across the south, U.S. military moving aggressively to counter that and to neutralize him.

At the same time, we are hearing reports that other militias, like the Badr (ph) brigades, also a Shia militia, may have been engaging al-Sadr's forces, his al-Mehdi Army down there. And a lot of residents not happy about what's happening.

One of the crucial questions in all of this was whether Moqtada al-Sadr could lead the majority Shia in this country into a conflict, a confrontation with the coalition.

And clearly, the word that we are getting from the south today, from our own sources and what we heard from the general in your interview is that he cannot, that he's got too much opposition. His military, his al-Mehdi Army just too ill-disciplined for people there to tolerate. And they would like him to get off of the streets.

So that may be a success story in the making for the U.S. Still, too early to tell.

A lot of people in Iraq a year after Saddam Hussein was toppled, wondering about their future, uncertain about that, certain about one thing: that the security situation needs a lot of improving -- Daryn.

KAGAN: Real quickly I need to ask you some of the most disturbing images we saw from yesterday included the hostages, the civilian hostages that were taken, a number of different nationalities. Anything new on those hostages in captivity and any word of new hostages taken today?

CLANCY: Well, unfortunately nothing new on the hostages that we believe are already in the hands of unknown individuals or groups. We do have reports that more hostages have been taken. There are reports that two Italians, two Americans and two others of a nationality we don't yet know, were taken hostage today.

But let me caution on that one, Daryn, a little bit. Because sometimes people are taken, they can be held for seven, eight hours or even longer, and then they will be released.

So right now, what we believe is there have been another instance of armed militiamen taking foreigners, taking outsiders that may have been traveling on the roads. They may be holding them as hostages. They may be questioning them and they're going to release them. We'll just have to wait and see on that front. But it is a disturbing development.

KAGAN: All right. We'll be checking back with you live from Baghdad. Our Jim Clancy in the Iraqi capital with all those developments. Thank you, Jim.

Let's get a look now at the big military picture in Iraq today. For that we bring in General George Harrison, retired from the U.S. Air Force.

General, thanks for staying with us throughout this breaking news and developing news.

Let's look forward into the weekend. We are talking about this holy Muslim holiday of Arbaeen. It means a lot of people on the move. Using our map, where are people going and what's the significance?

GEN. GEORGE HARRISON, U.S. AIR FORCE (RET.): Well, people are going to Karbala and Najaf. The significance is that this is the first celebration of this holiday in probably the 30 years since Saddam Hussein took charge of the country of Iraq.

KAGAN: We did see a little bit of movement last year...

HARRISON: A little bit last year.

KAGAN: ... because things had eased a little bit. But nothing like the freedom that people will be able to enjoy this year.

HARRISON: That's right. And this is a major holiday in the Shia sector, the Shia portion of the Muslim religion.

So we'll see a lot of people moving. We heard an estimate from General Kimmitt of about 1.2 million, which is a big crowd of people. It presents a tremendous security problem, but at the same time, it presents a tremendous opportunity for the coalition forces and the emerging provisional Iraqi government.

If this pilgrimage can be secured and guaranteed, if religious freedom in this context can be guaranteed, this is really a great step forward for the overall situation in Iraq.

KAGAN: So opportunity, perhaps, for things to flare up. HARRISON: Sure.

KAGAN: Or perhaps a great selling point about what could be happening for Iraq.

HARRISON: That's right.

KAGAN: Let's move north and talk about Fallujah, or what is taking place there. An unusual military step, the U.S. military saying, "You know what? We're going to cool it for a little bit here and let some other things take place."

HARRISON: Well, I think very important in Fallujah, obviously there's a lot of suffering. We've heard reports of 300 casualties just now from Jim Clancy.

A very bad situation for Iraqis, for the citizens who are not involved in either the insurgency or support of the coalition forces particularly. They're the punished bystanders.

And I think the withdrawal, the cessation of active combat operations in Fallujah, is a recognition of the difficulty that they're going through.

Now the other part of that is the incredibly rapid response of the coalition military. They demonstrated flexibility, quick deployment, overnight deployment.

And we heard a really outstanding recognition of the cultural shift that's taking place in the Iraqi forces.

As they shift from an atmosphere of intimidation under Saddam Hussein where they held a population with an iron fist, to an atmosphere more like we'd be comfortable with in the United States where the police provide a benevolent presence in most situations.

KAGAN: But still a long way to go.

HARRISON: Yes.

KAGAN: There's a nice balance between benevolent presence and a military that can hold its own...

HARRISON: That's right.

KAGAN: ... and a police force that can hold its own when things flare up.

Want to get back to the breaking story that happened just about an hour ago. We were watching the aftermath of this explosion taking place in Baghdad. We believe it was a mortar shell fired into the Ishtar Sheraton Hotel in central Baghdad.

We have a keyhole map to give you a better idea of what we're talking about. So here, we're way out in outer space, and you have Baghdad. We're going to zoom in now. And you can see on the left side of your screen, that's the Green Zone.

HARRISON: That's correct.

KAGAN: And General, you talk a little bit about what the Green Zone is and the significance in terms of safety.

HARRISON: That's right. It's the place where the majority of the official coalition presence is located, where the nucleus of the new Iraqi government will be located.

And it's really a place where security really has to be guaranteed. Except, of course, for these things that are fired from outside, like mortars, rockets, all those kinds of harassment devices.

KAGAN: As you were pointing out, Baghdad, a huge city of five million people, a metropolis.

As we move the keyhole, again, to the right side of the river, you're going to see the square. That, of course, is significant. One year ago today the fall of Baghdad. This is where the statue of Saddam Hussein...

HARRISON: That's right.

KAGAN: ... did stand, was toppled, first with the American flag over it, then toppled over.

Today, we saw two things. We saw the ripping down of posters of Moqtada al-Sadr, the radical Shiite cleric. But also, this is right where the Sheraton Hotel stands.

HARRISON: Exactly.

KAGAN: And this is what was fired upon. Now, you're looking this, you are trying to explain to us the delivery system of how you would even fire a mortar, a 120 millimeter mortar.

HARRISON: A mortar is simply a tube. And it -- The mortar shell contains its own propellant. You drop the mortar into the tube. You change the location or the azimuth (ph) and elevation of the tube to get a particular impact point.

Now this may have been a lucky shot or it may have been a well- measured, well rehearsed, carefully planned shot. The range of the mortar could be up to three or four miles. So sterilizing an area three or four miles around that hotel would be almost impossible.

KAGAN: Almost impossible.

And the important news, of course, as Jim Clancy pointing out, at this point...

HARRISON: No casualties. KAGAN: ... no casualties. They might have gotten what they think is a lucky shot into the hotel, but they didn't hit any of the journalists or private contractors who might be staying there.

HARRISON: Right.

KAGAN: That is the good news there.

Don't go far.

HARRISON: OK.

KAGAN: I'm sure we'll have more news coming out of Iraq. The general is going to stay with us.

Meanwhile, there's a lot more news to get to.

And of course, this is Good Friday. Our Allessio Vinci is standing by at the Vatican, talking about a frail pope John Paul II. He is observing Good Friday, the day that Christians soberly remember for the crucifixion of Jesus.

The pope is now presiding at the traditional passion service at St. Peter's basilica. He is recalling the last hours of Christ. Later he'll mark the way of the cross at Rome's coliseum.

Allessio Vinci, not in the Vatican, I'm told, but in Rome -- Allessio.

ALLESSIO VINCI, CNN CORRESPONDENT: Hello, Daryn.

Indeed, this is the most solemn day in the Christian calendar, Good Friday, when Catholics commemorate the day that Jesus was crucified.

At this time inside of St. Peter's basilica, Pope John Paul II presiding over a ceremony with -- in front of thousands of pilgrims, as well as many church officials, including cardinals who were expected at some point to read out portions of the gospel recounting those final moments of Jesus.

The pope just attending, presiding over the ceremony but not expected to read or deliver any kind of blessing or speech at this time. Later in the day, he will move across town to the coliseum, where despite his frail health, he will preside over the way of the cross, which is pretty much again a procession reenacting or representing the final hours of Jesus.

He -- this procession will be led by cardinals, and pilgrims behind will follow, chanting and praying.

The pope, as has been the case in recent years, will not be able to carry the cross himself, as he used to do. But he nevertheless is expected to deliver a blessing at the end of that procession.

These are really demanding times for the pope who, despite his fail health, insists on wanting to participate and preside over those church events.

He has appeared in relatively good form lately. Last night, for example, he presided over first ceremony commemorating the Last Supper. This morning, at the St. Peter's basilica, John Paul II heard confessions of ordinary Catholics.

And again, then today, a demanding evening for the pope, who will move across town.

It's quite unusual for the pope these days to move away from the Vatican. His frail health really, especially his Parkinson's Disease, prevents him from moving around on his own. He's using a wheelchair to move around. Vatican officials are really trying to do all that they can in trying to facilitate his participation to all these events.

But the pope really wanting to mark this very important week in the Christian calendar by presiding over all of the ceremonies.

KAGAN: Allessio Vinci joining us from Rome. And we will have more from Rome and the Vatican just ahead.

Also, we're going to check back in in Baghdad and Iraq. If you're with us, we've been following the breaking news, the Sheraton Hotel fired upon by a mortar. No casualties reported. This is a hotel that houses journalists and private contractors, as well. We'll be checking back with Jim Clancy.

Also looking at the overall military situation in Iraq. We'll be back in a moment.

(COMMERCIAL BREAK)

KAGAN: We are not going to get far from the story that is developing out of Baghdad. And that is the explosion at the Sheraton Hotel in central Baghdad.

This is the one-year anniversary of the toppling of not just -- the falling of Baghdad, but also the toppling of that statue of Saddam that stood very close to the Sheraton Hotel.

No word of any casualties in that explosion. But we'll be back with Jim Clancy not too long from right now.

Meanwhile, let's get other news in from right here in the U.S.

The Bush administration saying it will declassify a document that is part of the 9/11 investigation. The intelligence memo was the subject of debate, if you were listening to Condoleezza Rice's testimony before the 9/11 commission; you saw it live right here on CNN.

The White House says it is working on making that memo public.

Jeanne Meserve joins us with details about what is in the memo and when we might get a look at it. Jeanne, good morning.

JEANNE MESERVE, CNN CORRESPONDENT: Daryn, we could get that document as early as today. White House officials say they want it in the public domain, because they fear it may have been distorted or taken out of context.

(BEGIN VIDEOTAPE)

MESERVE (voice-over): The presidential daily brief of August 6, 2001, figured prominently in Rice's appearance before the 9/11 commission. Because the administration believed that summer that any terrorist attack would likely be overseas, even the PDB's title provoked a tough exchange.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISOR: I believe the title was "Bin Laden Determined to Attack Inside the United States." Now the...

RICHARD BEN-VENISTE, 9/11 COMMISSION MEMBER: Thank you.

RICE: ... the PDB. No, Mr. Ben-Veniste, you're not...

BEN-VENISTE: I want to get into...

RICE: I would like to finish my point here.

BEN-VENISTE: I didn't know there was a point.

RICE: You asked me whether or not it warned of attacks.

BEN-VENISTE: I asked you what the title was.

RICE: You said did it not warn of attacks. It did not warn of attacks inside the United States. It was historical information based on old reporting. There was no new threat information.

MESERVE: But Rice disclosed the brief mentioned 70 FBI investigations into al Qaeda cells in the U.S., and the possibility of hijacking.

BOB KERREY, 9/11 COMMISSION MEMBER: That the FBI indicates patterns of suspicious activity in the United States consistent with preparations for hijacking. That's what -- that's the language of the memo that was briefed to the president on the 6th of August.

RICE: And that was checked out. And steps were taken through FAA circulars to warn of hijackings.

MESERVE: But Rice said she had never been briefed on the use of planes as missiles, though intelligence agencies had warned of the danger as early as 1995.

Rice denied claims by her former counterterrorism aide Richard Clarke that the Bush administration under reacted to al Qaeda the summer before 9/11, saying the government was on full alert. At least one panel member was skeptical.

JAMIE GORELICK, 9/11 COMMISSION MEMBER: Have you actually looked at the list of messages that the FBI put out?

RICE: Yes.

GORELICK: To me, and you're free to comment on them, they are feckless. They don't tell anybody anything. They don't bring anyone to battle stations.

(END VIDEOTAPE)

MESERVE: Rice blamed 9/11 on intelligence failures, which she said were brought about by structural problems within the U.S. government. Those have been much discussed since the 9/11 attack.

The commission will be taking a closer look next week when they hear from Attorney General John Ashcroft and the directors of the CIA and the FBI.

Daryn, back to you.

KAGAN: And Jeanne, since you're there at the White House, let's ask you: any update on when President Bush and Vice President Cheney will appear together before the commission?

MESERVE: Daryn, I have nothing for you on that. So sorry.

KAGAN: All right. Jeanne Meserve at White House. Thank you for the latest on Condoleezza Rice and the classified document possibly coming out very soon.

Tiger in trouble. He is making the cut at Augusta this morning. Of course, we're lightening things up quite a bit right now. Second round gets under way at the Masters.

Our sports correspondent Josie Burke, joining us from Augusta National. Josie, giving up a much-needed break after all the intense news that we have had.

Take us among the azaleas, please, young lady.

JOSIE BURKE, CNN SPORTS CORRESPONDENT: I'm happy to give you that break.

And you know, the big question swirling around Augusta here when the Masters started was what's wrong with Tiger Woods? And with his play so far, he hasn't really done anything to quiet those questions.

I can give you an update right now. He started his second round. He is still three over par for the tournament. But he really dug himself quite a hole yesterday when he started out.

He shot a 40, a four over par, on the front nine yesterday. He only made it through 14 holes. He had to then finish up his first round this morning. He actually birdied No. 15, which his was first hole this morning. And that was his first and only birdie to this point.

So those questions about what's wrong with Tiger Woods, they'll persist as he really has to fight to try to make the cut. He was in a similar situation last year and ended up making the cut. We'll keep our eye on him and also Arnold Palmer, making his final Masters appearance today -- Daryn.

KAGAN: Josie burke at Augusta, Georgia, Augusta National. T hank you so much for that.

Affordable health care? One state is working to bring down the cost of prescription drugs. We're talking to the governor of New Hampshire, Craig Benson. He'll be with us to talk about what he is doing when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

KAGAN: New Hampshire is going against a federal mandate, becoming the fourth state to endorse cheaper prescription drugs from Canada. The state's official web site links citizens to an online Canadian pharmacy.

Governor Craig Benson joins us From Manchester this morning.

Governor, good morning. Thanks for being with us.

GOV. CRAIG BENSON, NEW HAMPSHIRE: Good morning, Daryn. Good to be here.

KAGAN: Let's go ahead, check out the web site. Explain to us how it works for citizens of New Hampshire, and why has it come to this?

BENSON: Well, people can't afford their prescription drugs in my state and many other states throughout the country. And yet, right across the border -- and we border Canada -- you're able to buy the exact same drugs from the exact same manufacturers for half as much or even less.

And I just think it's wrong and there's ways in which we can allow our citizens to reach out to those drugs and get what they need.

KAGAN: Now, is your earpiece OK there?

BENSON: Yes.

KAGAN: OK. You say the exact same drugs. But the FDA has come out very strongly with great concern about the safety issues of drugs that are purchased in Canada.

You also have the pharmaceutical industry understandably concerned here in the U.S. about safety and calling safety into question, saying there's no oversight agency that's looking over drugs in Canada like the FDA does here in the U.S.

BENSON: Well, Canada health does look over drugs in Canada. And you know, the life expectancy in Canada is longer than here in the United States.

The site that we've picked for New Hampshire and done a survey of is a very, very reputable company, growing very rapidly: has about 200 employees, and more than that, has much more oversight in the way they fill the prescriptions that we do even here in the United States.

I personally bought drugs from Canada and drugs from here in New Hampshire and sent them to our state lab for evaluation. And they were found to be the exact same, except for the fact that Canada actually ships the products in the original manufacturers' containers with the seal of the manufacturer on it. So that's even more safe than what we do here in the United States.

KAGAN: If you don't have any safety concerns, about what the issue potentially, Governor, that you could be breaking the law? The FDA also saying that all parties who cause a prohibited act can be found civilly and criminally liable. Have you considered that?

BENSON: Well, you know, I happen to think that there's a number of citizens in my state that can't afford their prescription drugs, are going without food so they can, or going without heat. They're taking half the drugs they need or cutting their pills in half.

You know, I have a responsibility to them, too, to do what's right for their health. And they deserve a good quality of life.

And so if this is the side I'm on, this is the side that I think I would choose to be on, because I can get up and look myself in the mirror in the morning and say we're doing the right thing for our citizens.

KAGAN: Not to take away from the suffering, especially the senior citizens of New Hampshire and the difficult situation that people are facing, not in your -- just your state but across the country, but isn't there a problem with a governor of a state decides, "Well, I'm going to enforce these laws, and these I'm not."

It sounds kind of like the chief justice down in Alabama deciding about the Ten Commandments.

BENSON: Well, I took an oath to the constitution of the state of New Hampshire. And nowhere did we say we cannot buy drugs from Canada.

What I also took an oath is to protect the rights and privileges of those in the state. And I think I'm upholding that right by getting people the drugs they need to enjoy their life.

You know, we have a lot of break-throughs in this world. And unfortunately, the drug companies have chosen to charge much higher prices for those exact same products here in the United States than any other country in the world.

It seems to me if we have a worldwide market, we should be able to buy the products we want from the places we think are best. And the state of New Hampshire's gone out and done a lot of work and research into finding good, affordable prescription drugs at places that we can do business with that are safe. And allow people to live that life that they choose to live.

KAGAN: Finally, have you heard anything from the federal government about taking down the web site?

BENSON: The FDA has written us a letter, prior to the...

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