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More Marines Killed in Iraq; Military Officials in Fallujah Hope to Extend Tense Cease-Fire With Iraqi Insurgents

Aired April 12, 2004 - 10:00   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, CNN ANCHOR: Good morning everyone. From CNN headquarters, I'm Daryn Kagan. And let's get started with a check of the top stories at this hour.
In Iraq, three U.S. Marines died from combat yesterday west of Baghdad. Two of the Marines were killed in action, the third died of wounds later in the day. And the military says 23 troops have been killed in the past three days. We'll have the latest in a live report just ahead.

Also in Iraq, military officials in Fallujah hope to extend a tense cease-fire with Iraqi insurgents. The armistice began yesterday when military commanders gave members of the Iraqi Governing Council a chance to negotiate an end to the recent violence in and around the city.

Vice President Dick Cheney is offering Japan U.S. help in the hostage crisis in Iraq. In that country for a visit, Cheney told the Japanese prime minister that America will do everything possible to help the country free three Japanese nationals that were abducted on Thursday. Iraqi militants threatened to burn the three hostages alive if Japan does not pull out of Iraq. That deadline was yesterday; there is no word of the hostages' fate today.

Israeli troops today killed three of four Palestinian gunmen in central Gaza. Israeli military officials say the killings came after the group opened fire on Israeli troops. In a separate attack, Palestinian militants fired rocket at an Israeli settlement in northern Gaza. There were no casualties in that incident.

The first hour of CNN LIVE TODAY begins right now.

We are going to begin this hour in Iraq; that is where the U.S. death toll climbs, the hostage ordeal goes on and a cease-fire faces the test of a second day.

Our Baghdad bureau chief Jane Arraf has the view from the Iraqi capital -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Daryn, that cease-fire in Fallujah, west of Baghdad, seems to be holding. but it is still quite tense with sporadic gunfire, according to reports. Now, that cease- fire, of course, not just to allow aid to get through and people to tend to the wounded, but to try to negotiate a settlement. Iraqi Governing Council members involved in that, as well as local and religious leaders. It is something that threatens to overshadow almost everything else here, that ongoing fighting in Fallujah.

On the other front that the U.S. has been fighting, that is the battle against the band militia of Shiia leader Muqtada al Sadr. The U.S. military says that it has in many towns where he had been -- sorry; many towns virtually extinguished that militia. But they are pouring troops still into the south to make sure that things remain stable. And in the holy city of Najaf, and surrounding areas where Sadr is, they are pouring troops as well, although the U.S. military spokesman, General Mark Kimmitt says they would like to see a negotiated settlement. They are prepared for everything.

(BEGIN VIDEO CLIP)

BRIG. GEN. MARK KIMMITT, DEPUTY OPS DIR., U.S. MILITARY: At this point, all of the options remain available. It would certainly not be our first choice to go into the holy cities of Karbala and Najaf. We certainly understand what those cities represent to the people of this country, to the Shiia religion, but we have an obligation and we have a responsibility to ensure sure that there is a safe and secure environment remaining in this country. And as long as Sadr and his militia continue to function within this country we will have to consider all options.

(END VIDEO CLIP)

ARRAF: Now, the city of Baghdad, according to senior U.S. military officials, still not secure but it is stable. They say it wasn't stable last week when they were fighting battles on several fronts, as Muqtada al Sadr's militia moved into the city. But that has stopped, fighting has been extinguished; there are continuing attacks in various parts of the city, but they say it has stabilized -- Daryn.

KAGAN: And what can you tell us, Jane, about members of the Iraqi Governing Council going to these different cities and meeting with representatives of Muqtada al Sadr?

ARRAF: Well, that is a really interesting one because it's a problem that has many layers to it. Now, the problem of trying to negotiate with Muqtada al Sadr is he speaks for a certain segment of the population, but he is considered one of the more radical Shiia leaders. You might recall that last year he declared Iraq was in fact an Islamic state; he very quickly modified that when it wasn't seen to have a whole lot of support. But essentially it is a simmering problem. He does have enough support but he can't be ignored and he can't be easily arrested. That is where that's where the Governing Council members and other religious officials come in to try to negotiate some sort of way out of this; so that this horrible scenario of U.S. troops, amassed around the edges of Najaf, don't actually move in -- Daryn.

KAGAN: Jane Arraf in Baghdad.

Let's talk about the military angle now. Washington's top civilian administrator in Iraq says that the surging volatility there is not likely to delay the June 30 handover of power. In fact, Paul Bremer is saying that American lives may depend on that very promise being kept.

Our Pentagon correspondent Barbara Starr joins us now with more -- Barbara.

BARBARA STARR, CNN PENTGON CORRESPONDENT: Good morning, Daryn. Well, with the handover now scheduled just weeks away, all eyes on the United Nations to see if anybody there can broker a deal.

(BEGIN VIDEOTAPE)

STARR (voice-over): As the violent insurgency exploded across Iraq in recent days, top U.S. officials still admitted they do not know who will take over power on June 30.

DAN SENSOR, COALITION SPOKESMAN: As to who we hand over sovereignty to, we are working that out right now.

STARR: Still, the Bush administration is determined to stick to its plan.

COLIN POWELL, SECRETARY OF STATE: We're going to continue to drive ahead with that work. There's no point delaying it.

STARR: The pressure is on. By May 30, an interim government is to be chosen. On June 30, it will take power. It will be operational one month later. The United Nations adviser Lakhdar Brahimi is trying to broker an agreement between the Iraq Governing Council and various factions, including the Grand Ayatollah Ali al Sistani for an interim government that could take power. The current violence has not helped.

KEN POLLACK, CNN ANALYST, BROOKINGS INST.: Those negotiations are extremely difficult and extremely delicate.

STARR: The leading option, the U.S. turns over authority to an expanded version of the Iraq Governing Council.

POLLACK: Grand Ayatollah Ali Sistani himself as already said, that if that is the course that the U.S. takes, that that governing council, that interim government will have no legitimacy and will have no authority.

STARR: U.S. officials feel the violence makes the turnover even more important. A new Iraqi government may lessen resentment against the U.S. occupation.

(END VIDEOTAPE)

STARR: That's all the political side of the question. but what about the U.S. military? Well, it will, of course, stay in place in Iraq after June 30 to look after the very fragile security situation. One recent indication of just how fragile it all is, now confirmation from the U.S. military, from the coalition that in the recent fighting in Fallujah, one Iraqi army battalion, one of the new Iraqi security force structures, did not show up in Fallujah to fight alongside the Marines Daryn. KAGAN: Barbara, take us back a week or two that the leader of U.S. Central Command, General John Abizaid saying that wanted the option of bringing in more troops to Iraq. What is the latest on that?

STARR: Well, that all is moving forward. That marker now on the table; it looks like sometime this week there will be a decision about force levels in Iraq. As it now appears, the discussion centers around keeping about 10,000 U.S. troops in the area. Troops that were scheduled to rotate back to the United States, they are now likely to stay in place, many of them from the First Armored Division. And the discussion now, how to backfill them; essentially replace them. Those troops now staying perhaps an extra 90 days. They want to make sure they can get those troops home. So a lot of discussion now what troops will replace them. That may be an acceleration of troops already scheduled to deploy, but also the question now being raised some troops that were not scheduled to go to Iraq at any point, they may now be earmarked to go -- Daryn.

KAGAN: Barbara Starr, we will be checking back with you in the next hour.

Right now, we want to take a look at reports of missing nationals in Iraq. Seven U.S. citizens are missing, that includes two U.S. soldiers and five civilian contractors. Three Japanese civilians have also been abducted; China is asking Baghdad authorities to rescue its seven citizens. Canada and Israel, each reporting one citizen missing. And two German security workers are missing and presumed dead.

A Sunday morning deadline has come and gone for American Thomas Hamel, with no word on the fate of the Mississippi man. He is 43 years old, the father of two and a truck driver for a division of a contractor for Halliburton. Friends say that financial reasons prompted him to take the high-risk job and that he had been home a few weeks ago, when his wife had open-heart surgery.

(BEGIN VIDEO CLIP)

DOROTHY BAKER HINES, MAYOR, MACON, MISSISSIPPI: We're all just praying for him and that's about all we can do right now. But we're going to show him our support by anything. We're going to have flags up, yellow ribbons, the prayer vigil and we will continue to keep him in prayer.

(END VIDEO CLIP)

KAGAN: Let's get a closer look now at Thomas Hamel and his situation and his reasons for going to Iraq. We are joined by Scott Boyd, he is a reporter with the "Macon Beacon Journal" in Macon, Mississippi, and had a chance to speak with Hamel's wife over the weekend.

Scott, thanks for being with us.

SCOTT BOYD, JOURNALIST, "MACON BEACON JOURNAL": Good morning, Daryn.

KAGAN: What is the latest that the family has been able to hear from Iraq?

BOYD: Well, I don't think they know much more than anybody else that is watching your report or any other media. They're just waiting and hoping for the best.

BOYD: And we mentioned his wife, just a few weeks ago, had open- heart surgery. How is she holding up? How is the family holding up?

BOYD: I think her health is fine. I think she's doing good under the circumstances. Just like everyone here, everybody is just worried sick over Tommy Hamel.

KAGAN: Tell us a little bit more about what you've been able to learn about Tommy Hamel. How does a man who earned most of his living as a dairy farmer in Mississippi, end up going to Iraq trying to earn a living?

BOYD: Well, Daryn, as you know, the dairy industry has really been hit the last couple of years. And Tommy tried to stick out in the dairy business but didn't. He sold his farm and didn't quite earn enough from that sale to satisfy the debt. So he saw an opportunity to go to Iraq for a high paying job, a lot better than the job that he can get over here. So he went over there and obligated himself for a year to try to earn enough money to support his family and to satisfy his debts from his farm.

KAGAN: Does he have any military background or any training in being in such a dangerous situation?

BOYD: Not that I know of.

KAGAN: And did he realize the danger involved in going and taking on this type of job?

BOYD: I'm sure did he; he's a very level-headed man. And I'm sure he knew exactly what he was getting into.

KAGAN: Very few places like small town America, where people pull together when someone is in trouble. I would imagine that Macon is doing that for the Hamel family now.

BOYD: Well, this is a wonderful community and they support all of their relatives and friends here. And we're all going to stick by them and do whatever we can to offer any kind of support.

KAGAN: Scott Boyd with the "Macon Beacon Journal," thank you for the update from Mississippi. Appreciate that.

BOYD: Thank you. Thank you.

KAGAN: A motion to dismiss in the Jayson Williams case. The defense accuses the prosecution of misconduct. Could it lead to a dismissal of charges for the former NBA star? President Bush meets with Egyptian President Hosni Mubarak; a live report from Crawford, Texas is just ahead.

Plus...

(BEGIN VIDEO CLIP)

(APPLAUSE)

(CHEERING)

(END VIDEO CLIP)

KAGAN: The best player never to win a major? Well, don't call Phil Mickelson that anymore. He is making his magic work at the Masters. A live report from Augusta coming up on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: We have an update for you now on Marcus Wesson; he is the California man accused of killing nine of his children one month ago today. Wesson's lead attorney says that a grizzly suicide murder pact may have been if in place. the plan called for older children to kill younger children before killing themselves. Police say a pistol and hunting knife were found under the body of Wesson's 25 year old daughter, the oldest of the victims. The others ranged in ages from one to 17.

Meanwhile, the manslaughter trial of former NBA star, Jayson Williams has resumed. The presiding judge may rule on a defense request to dismiss the charges.

Our Adaora Udoji is following the proceedings and she's joining us from our New York bureau this morning.

Adaora, good morning.

ADAORA UDOJI, CNN CORRESPONDENT: Good morning, Daryn. Indeed, the judge, Judge Edward Coleman in the Jayson Williams case, just started speaking a few moments ago. All morning, he has been listening to arguments from both the defense and the prosecution. They have started off a second week without the jury in the court. Instead this morning, defense attorneys, representing Williams, continue to argue the judge should drop aggravated manslaughter and seven other charges against Williams, and the case should be thrown out.

Why? The defense says the prosecution has repeatedly violated Williams' right to a fair trial. The argument stemming most specifically from the April 1 discovery, the prosecution had failed to turn over evidence related to the gun involved in the death of limousine driver Gus Christofi at Williams' house in 2002. Now, the revelations came as the defense rested its case back on April 1. Prosecutors acknowledged nearly 100 pages of notes and photographs taken by their gun expert should have been turned over to the defense, but vehemently say it was an unintended oversight. Now, the gun is central to the defense. They argue the 12-gauge shotgun accidentally went off killing Christofi. Prosecutors say it was Williams's reckless behavior that caused Christofi's death. Some legal experts have been predicting it's unlikely the judge will toss out the case.

And as I said, the Judge Coleman has just begun speaking following the arguments by both the defense and prosecution. He said that he did not believe that there was any plot on behalf -- on the part of the prosecution to withhold this material. That he believed that perhaps that gun expert could get on the stand, and that the defense could vigorously question that gun expert about that material that was late to get to the defense. Although Judge Coleman is speaking at this very moment, Daryn, and I'm sure he will clarify exactly what he believes should take place.

Now, remember, Williams is facing eight charges -- eight criminal charges that could land him in jail for up to 55 years if he convicted of some or all of them -- Daryn.

KAGAN: And Adaora, as I understand it, the defense not asking for a mistrial but asking that there be no chance of a retrial?

UDOJI: Absolutely. They're arguing that the prosecution has so severely violated Mr. Williams' right that the prosecution, who in their conduct have so badly acted, that they should be barred from bringing the charges against Williams again. Again, Judge Coleman speaking right now and he hasn't addressed that specific point, at least not yet.

KAGAN: All right. Well, we're going to cut you loose so you can listen in to what the Judge Coleman has to say. We'll move on to other news. Adaora Udoji, thank you for that.

Worried about getting your tax return to the IRS on time? There is a faster, cheaper and easier way to do it than just standing in long lines at the post office? Who else besides Gerri Willis to tell us the details on our "Top Five Tips."

And you think you're feeling the pinch when it comes to see prices at the pump? Find out which city is paying the most. Look at those numbers!

Stay with CNN, the news continues after this.

(COMMERCIAL BREAK)

KAGAN: Three days and counting toward that tax deadline. If you haven't filed your tax return just yet you might want to avoid those long lines at the post office and think about filing your taxes electronically. There are some good tips though, of how to do that with e-filing.

And we've brought in our FN personal finance correspondent Gerri Willis, live in New York -- Gerri. GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. Good to see you. Well, step No. 1, you've got to get online. Look, about half of the people who have already filed, according to the latest IRS numbers, filed electronically. So you should, too. And here is why. The government is encouraging it with some free filing programs you can find at www.irs.gov. Click on their free online filing page, and there you'll get information on the Free File Alliance. They'll line you up with software providers that let you use their software gratis -- Daryn.

KAGAN: That means free for those of us who don't like to spend the big bucks.

WILLIS: That's right.

KAGAN: It also could help you cut down on the worry, you say?

WILLIS: Right. Well, lots of advantages to these programs. Listen to this. You get your refund faster. You can get your refund in 10 days instead of six to eight weeks. And you may be more accurate in your filing. Here is why. Normally when you send a paper filing to the IRS, they have to take your numbers and transpose them into their computers. Now, as you might guess, there is a lot of chance for error there, but if you file electronically it's just zapped right into the IRS computers. No chance for mistakes.

KAGAN: But you want to be smart about what you're doing?

WILLIS: Absolutely. Understand a couple of things here. The Free File Alliance, if you go this way, you may end up getting solicitations in the mail over the web for other services and products from those companies. You do not have to take advantage of them. No. 2, you may be tempted to pay your tax bill with a credit card. This is not a great idea. Our expert Grace Weinstein, author of the "Procrastinators Guide To Taxes Made Easy," told us why.

(BEGIN VIDEO CLIP)

GRACE WEINSTEIN, AUTHOR, "PROCRASTINATORS GUIDE TO TAXES MADE EASY": You should be aware that there is a charge. The government doesn't charge anything extra, but the credit card companies may charge what they call a "convenience fee," which is up to 2.49 percent of the amount of tax you owe. That can be a fairly hefty amount. And in addition to that, you would have interest charges if do you spread the payments over time.

(END VIDEO CLIP)

WILLIS: And Daryn, the last thing you want to do is add to credit card debt.

KAGAN: Yes, exactly. That's not going to help things. How do you sign it if you're filing electronically?

WILLIS: Well, yes, that is the big question. If you're filing electronically, where do you put your John Doe? Well, you don't have to. You can pick a pin, that's a series of letters and numbers that you're going to use to identify yourself. Just like you do when you're going to the bank and using one of the bank machines. It's the same kind of idea.

Now, if you really do want to use a signature, get Form 8453 from the IRS web site. And you can actually file with a signature. But the easy way, really Daryn, is to use the pin number.

KAGAN: Yes you know, finally some people get really concerned still when they're online, worrying about security.

WILLIS: Exactly. Well, I've got to tell you, you know, professional tax providers, accountants and others, have been using this system for a long, long time. And the IRS provides privacy and security seals to those professional tax filers who are doing it all of the time. You should feel pretty comfortable doing this. There haven't been any major problems so far, knock wood. But I got to tell you; it's certainly an efficient way to go -- Daryn.

KAGAN: OK, Ger, are yours done? Did you do your taxes?

WILLIS: Oh, yes -- well, we haven't filed electronically yet, but we've definitely done the first version of them.

KAGAN: It's always the tax experts that wait until the last second! All right. Thank you Gerri Willis, we'll see you later in the week.

WILLIS: All righty.

KAGAN: International news ahead, a Mid East meeting. President Bush and Hosni Mubarak, we'll get a live report from Crawford, Texas straight ahead.

Plus, what's new in the auto industry? We'll have a live report from the New York Auto Show when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

KAGAN: Let's take a look at the top stories at this hour.

China's foreign ministry urging Iraqi authorities to rescue seven Chinese civilians taken hostage in central Iraq last night. It's not clear why they were in Iraq. It's not clear why they were in Iraq, at least eight other international citizens are also being held hostage in Iraq.

Spanish police arrested have three more suspects in connection with last month's train bombings in Madrid. The three Moroccans were taken into custody in recent days but their arrests were just announced a short time ago. The attacks, one month ago yesterday, killed 190 people and wounded more than 1800.

In India, at least 21 people have been killed in a stampede for free clothing. Authorities in northern India say 5,000 people gather for a local politician's offer of a traditional Indian dress to mark his birthday. The victims were crushed when the crowds surged forward.

In Russia, the death toll from a Saturday's explosion in a Siberian mine may top 40. Rescue officials say there is little hope of finding any more survivors. Fifty-one miners were underground at the time of the methane explosion; eight survivors are hospitalized. Russia has launched an investigation into the tragedy.

As violence escalates in Iraq, the crisis in the Middle East is deepening. President Bush today seeks new diplomatic in roads in the Israeli-Palestinian conflict, by hosting Egyptian President Hosni Mubarak at his Texas ranch.

Our White House correspondent Suzanne Malveaux is in Crawford with a preview of those talks -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONENT: Well, Daryn, this really comes at a critical time for the president, as well as the Egyptian President Hosni Mubarak this week. That is because of the violence we've seen erupt in Iraq as well as the Israeli/Palestinian peace process, the road map that has come to a dead-end. Both of the leaders are eager to pledge their cooperation for change.

Now you may remember the historic summit that happened last June. That's when Mubarak and four other Arab leaders pledged their commitment to the U.S. road map. That is the plan that calls for Israelis and Palestinians to take reciprocal steps towards the creation of an independent Israeli and Palestinian states.

But with these talks dead, essentially Israel Prime Minister Ariel Sharon is now poised to present Mr. Bush with his own plan. That is expected to happen on Wednesday at visit to the White House. Sharon's disengagement plan calls for Israel to unilaterally pull out of Gaza and a small portion of the West Bank.

Now the U.S. is expected to approve this plan on the condition that it leaves the door open for future Israeli and Palestinian talks. And to make it work, however, Mr. Sharon and Mr. bush are counting on Mubarak to provide some security. Mubarak situation, he is facing his own problems, protests on the ground over the U.S.-led Iraqi occupation. At the same time President Bush has been pushing for Mubarak for reforms.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The great and proud nation of Egypt has shown the way toward peace in the Middle East and now should show the way toward democracy in the Middle East.

(END VIDEO CLIP)

MALVEAUX: The president has long believed that it could become a terrorist breeding ground if he didn't see those kind of Democratic reforms. HE has been pushing Mubarak and other leaders to take those steps. But as you can imagine, Daryn, at top of the list, of course, that violence in the Middle East in Iraq as well as this peace initiative that they certainly hope to jumpstart this week -- Daryn. KAGAN: And especially with what is happening in Iraq. Is there any concern by this White House that the president is at his ranch and the appearance that gives instead of being at the White House?

MALVEAUX: There certainly was some criticism over the weekend about that. There were some who came forward saying that he wasn't doing enough or he didn't look engaged enough, that he didn't really feel that he was actively involved.

The president came out, he spoke out a number of times. His radio address, he said that he had been briefed by his national security council through these video conference calls.

But there were some people who felt perhaps he should have been in Washington during this time. We did get a pretty full briefing from the president yesterday about his feelings, about what's happened on the ground in Iraq.

KAGAN: Suzanne Malveaux in Crawford, Texas. Suzanne, thank you.

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Aired April 12, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning everyone. From CNN headquarters, I'm Daryn Kagan. And let's get started with a check of the top stories at this hour.
In Iraq, three U.S. Marines died from combat yesterday west of Baghdad. Two of the Marines were killed in action, the third died of wounds later in the day. And the military says 23 troops have been killed in the past three days. We'll have the latest in a live report just ahead.

Also in Iraq, military officials in Fallujah hope to extend a tense cease-fire with Iraqi insurgents. The armistice began yesterday when military commanders gave members of the Iraqi Governing Council a chance to negotiate an end to the recent violence in and around the city.

Vice President Dick Cheney is offering Japan U.S. help in the hostage crisis in Iraq. In that country for a visit, Cheney told the Japanese prime minister that America will do everything possible to help the country free three Japanese nationals that were abducted on Thursday. Iraqi militants threatened to burn the three hostages alive if Japan does not pull out of Iraq. That deadline was yesterday; there is no word of the hostages' fate today.

Israeli troops today killed three of four Palestinian gunmen in central Gaza. Israeli military officials say the killings came after the group opened fire on Israeli troops. In a separate attack, Palestinian militants fired rocket at an Israeli settlement in northern Gaza. There were no casualties in that incident.

The first hour of CNN LIVE TODAY begins right now.

We are going to begin this hour in Iraq; that is where the U.S. death toll climbs, the hostage ordeal goes on and a cease-fire faces the test of a second day.

Our Baghdad bureau chief Jane Arraf has the view from the Iraqi capital -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Daryn, that cease-fire in Fallujah, west of Baghdad, seems to be holding. but it is still quite tense with sporadic gunfire, according to reports. Now, that cease- fire, of course, not just to allow aid to get through and people to tend to the wounded, but to try to negotiate a settlement. Iraqi Governing Council members involved in that, as well as local and religious leaders. It is something that threatens to overshadow almost everything else here, that ongoing fighting in Fallujah.

On the other front that the U.S. has been fighting, that is the battle against the band militia of Shiia leader Muqtada al Sadr. The U.S. military says that it has in many towns where he had been -- sorry; many towns virtually extinguished that militia. But they are pouring troops still into the south to make sure that things remain stable. And in the holy city of Najaf, and surrounding areas where Sadr is, they are pouring troops as well, although the U.S. military spokesman, General Mark Kimmitt says they would like to see a negotiated settlement. They are prepared for everything.

(BEGIN VIDEO CLIP)

BRIG. GEN. MARK KIMMITT, DEPUTY OPS DIR., U.S. MILITARY: At this point, all of the options remain available. It would certainly not be our first choice to go into the holy cities of Karbala and Najaf. We certainly understand what those cities represent to the people of this country, to the Shiia religion, but we have an obligation and we have a responsibility to ensure sure that there is a safe and secure environment remaining in this country. And as long as Sadr and his militia continue to function within this country we will have to consider all options.

(END VIDEO CLIP)

ARRAF: Now, the city of Baghdad, according to senior U.S. military officials, still not secure but it is stable. They say it wasn't stable last week when they were fighting battles on several fronts, as Muqtada al Sadr's militia moved into the city. But that has stopped, fighting has been extinguished; there are continuing attacks in various parts of the city, but they say it has stabilized -- Daryn.

KAGAN: And what can you tell us, Jane, about members of the Iraqi Governing Council going to these different cities and meeting with representatives of Muqtada al Sadr?

ARRAF: Well, that is a really interesting one because it's a problem that has many layers to it. Now, the problem of trying to negotiate with Muqtada al Sadr is he speaks for a certain segment of the population, but he is considered one of the more radical Shiia leaders. You might recall that last year he declared Iraq was in fact an Islamic state; he very quickly modified that when it wasn't seen to have a whole lot of support. But essentially it is a simmering problem. He does have enough support but he can't be ignored and he can't be easily arrested. That is where that's where the Governing Council members and other religious officials come in to try to negotiate some sort of way out of this; so that this horrible scenario of U.S. troops, amassed around the edges of Najaf, don't actually move in -- Daryn.

KAGAN: Jane Arraf in Baghdad.

Let's talk about the military angle now. Washington's top civilian administrator in Iraq says that the surging volatility there is not likely to delay the June 30 handover of power. In fact, Paul Bremer is saying that American lives may depend on that very promise being kept.

Our Pentagon correspondent Barbara Starr joins us now with more -- Barbara.

BARBARA STARR, CNN PENTGON CORRESPONDENT: Good morning, Daryn. Well, with the handover now scheduled just weeks away, all eyes on the United Nations to see if anybody there can broker a deal.

(BEGIN VIDEOTAPE)

STARR (voice-over): As the violent insurgency exploded across Iraq in recent days, top U.S. officials still admitted they do not know who will take over power on June 30.

DAN SENSOR, COALITION SPOKESMAN: As to who we hand over sovereignty to, we are working that out right now.

STARR: Still, the Bush administration is determined to stick to its plan.

COLIN POWELL, SECRETARY OF STATE: We're going to continue to drive ahead with that work. There's no point delaying it.

STARR: The pressure is on. By May 30, an interim government is to be chosen. On June 30, it will take power. It will be operational one month later. The United Nations adviser Lakhdar Brahimi is trying to broker an agreement between the Iraq Governing Council and various factions, including the Grand Ayatollah Ali al Sistani for an interim government that could take power. The current violence has not helped.

KEN POLLACK, CNN ANALYST, BROOKINGS INST.: Those negotiations are extremely difficult and extremely delicate.

STARR: The leading option, the U.S. turns over authority to an expanded version of the Iraq Governing Council.

POLLACK: Grand Ayatollah Ali Sistani himself as already said, that if that is the course that the U.S. takes, that that governing council, that interim government will have no legitimacy and will have no authority.

STARR: U.S. officials feel the violence makes the turnover even more important. A new Iraqi government may lessen resentment against the U.S. occupation.

(END VIDEOTAPE)

STARR: That's all the political side of the question. but what about the U.S. military? Well, it will, of course, stay in place in Iraq after June 30 to look after the very fragile security situation. One recent indication of just how fragile it all is, now confirmation from the U.S. military, from the coalition that in the recent fighting in Fallujah, one Iraqi army battalion, one of the new Iraqi security force structures, did not show up in Fallujah to fight alongside the Marines Daryn. KAGAN: Barbara, take us back a week or two that the leader of U.S. Central Command, General John Abizaid saying that wanted the option of bringing in more troops to Iraq. What is the latest on that?

STARR: Well, that all is moving forward. That marker now on the table; it looks like sometime this week there will be a decision about force levels in Iraq. As it now appears, the discussion centers around keeping about 10,000 U.S. troops in the area. Troops that were scheduled to rotate back to the United States, they are now likely to stay in place, many of them from the First Armored Division. And the discussion now, how to backfill them; essentially replace them. Those troops now staying perhaps an extra 90 days. They want to make sure they can get those troops home. So a lot of discussion now what troops will replace them. That may be an acceleration of troops already scheduled to deploy, but also the question now being raised some troops that were not scheduled to go to Iraq at any point, they may now be earmarked to go -- Daryn.

KAGAN: Barbara Starr, we will be checking back with you in the next hour.

Right now, we want to take a look at reports of missing nationals in Iraq. Seven U.S. citizens are missing, that includes two U.S. soldiers and five civilian contractors. Three Japanese civilians have also been abducted; China is asking Baghdad authorities to rescue its seven citizens. Canada and Israel, each reporting one citizen missing. And two German security workers are missing and presumed dead.

A Sunday morning deadline has come and gone for American Thomas Hamel, with no word on the fate of the Mississippi man. He is 43 years old, the father of two and a truck driver for a division of a contractor for Halliburton. Friends say that financial reasons prompted him to take the high-risk job and that he had been home a few weeks ago, when his wife had open-heart surgery.

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DOROTHY BAKER HINES, MAYOR, MACON, MISSISSIPPI: We're all just praying for him and that's about all we can do right now. But we're going to show him our support by anything. We're going to have flags up, yellow ribbons, the prayer vigil and we will continue to keep him in prayer.

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KAGAN: Let's get a closer look now at Thomas Hamel and his situation and his reasons for going to Iraq. We are joined by Scott Boyd, he is a reporter with the "Macon Beacon Journal" in Macon, Mississippi, and had a chance to speak with Hamel's wife over the weekend.

Scott, thanks for being with us.

SCOTT BOYD, JOURNALIST, "MACON BEACON JOURNAL": Good morning, Daryn.

KAGAN: What is the latest that the family has been able to hear from Iraq?

BOYD: Well, I don't think they know much more than anybody else that is watching your report or any other media. They're just waiting and hoping for the best.

BOYD: And we mentioned his wife, just a few weeks ago, had open- heart surgery. How is she holding up? How is the family holding up?

BOYD: I think her health is fine. I think she's doing good under the circumstances. Just like everyone here, everybody is just worried sick over Tommy Hamel.

KAGAN: Tell us a little bit more about what you've been able to learn about Tommy Hamel. How does a man who earned most of his living as a dairy farmer in Mississippi, end up going to Iraq trying to earn a living?

BOYD: Well, Daryn, as you know, the dairy industry has really been hit the last couple of years. And Tommy tried to stick out in the dairy business but didn't. He sold his farm and didn't quite earn enough from that sale to satisfy the debt. So he saw an opportunity to go to Iraq for a high paying job, a lot better than the job that he can get over here. So he went over there and obligated himself for a year to try to earn enough money to support his family and to satisfy his debts from his farm.

KAGAN: Does he have any military background or any training in being in such a dangerous situation?

BOYD: Not that I know of.

KAGAN: And did he realize the danger involved in going and taking on this type of job?

BOYD: I'm sure did he; he's a very level-headed man. And I'm sure he knew exactly what he was getting into.

KAGAN: Very few places like small town America, where people pull together when someone is in trouble. I would imagine that Macon is doing that for the Hamel family now.

BOYD: Well, this is a wonderful community and they support all of their relatives and friends here. And we're all going to stick by them and do whatever we can to offer any kind of support.

KAGAN: Scott Boyd with the "Macon Beacon Journal," thank you for the update from Mississippi. Appreciate that.

BOYD: Thank you. Thank you.

KAGAN: A motion to dismiss in the Jayson Williams case. The defense accuses the prosecution of misconduct. Could it lead to a dismissal of charges for the former NBA star? President Bush meets with Egyptian President Hosni Mubarak; a live report from Crawford, Texas is just ahead.

Plus...

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(CHEERING)

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KAGAN: The best player never to win a major? Well, don't call Phil Mickelson that anymore. He is making his magic work at the Masters. A live report from Augusta coming up on CNN LIVE TODAY.

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KAGAN: We have an update for you now on Marcus Wesson; he is the California man accused of killing nine of his children one month ago today. Wesson's lead attorney says that a grizzly suicide murder pact may have been if in place. the plan called for older children to kill younger children before killing themselves. Police say a pistol and hunting knife were found under the body of Wesson's 25 year old daughter, the oldest of the victims. The others ranged in ages from one to 17.

Meanwhile, the manslaughter trial of former NBA star, Jayson Williams has resumed. The presiding judge may rule on a defense request to dismiss the charges.

Our Adaora Udoji is following the proceedings and she's joining us from our New York bureau this morning.

Adaora, good morning.

ADAORA UDOJI, CNN CORRESPONDENT: Good morning, Daryn. Indeed, the judge, Judge Edward Coleman in the Jayson Williams case, just started speaking a few moments ago. All morning, he has been listening to arguments from both the defense and the prosecution. They have started off a second week without the jury in the court. Instead this morning, defense attorneys, representing Williams, continue to argue the judge should drop aggravated manslaughter and seven other charges against Williams, and the case should be thrown out.

Why? The defense says the prosecution has repeatedly violated Williams' right to a fair trial. The argument stemming most specifically from the April 1 discovery, the prosecution had failed to turn over evidence related to the gun involved in the death of limousine driver Gus Christofi at Williams' house in 2002. Now, the revelations came as the defense rested its case back on April 1. Prosecutors acknowledged nearly 100 pages of notes and photographs taken by their gun expert should have been turned over to the defense, but vehemently say it was an unintended oversight. Now, the gun is central to the defense. They argue the 12-gauge shotgun accidentally went off killing Christofi. Prosecutors say it was Williams's reckless behavior that caused Christofi's death. Some legal experts have been predicting it's unlikely the judge will toss out the case.

And as I said, the Judge Coleman has just begun speaking following the arguments by both the defense and prosecution. He said that he did not believe that there was any plot on behalf -- on the part of the prosecution to withhold this material. That he believed that perhaps that gun expert could get on the stand, and that the defense could vigorously question that gun expert about that material that was late to get to the defense. Although Judge Coleman is speaking at this very moment, Daryn, and I'm sure he will clarify exactly what he believes should take place.

Now, remember, Williams is facing eight charges -- eight criminal charges that could land him in jail for up to 55 years if he convicted of some or all of them -- Daryn.

KAGAN: And Adaora, as I understand it, the defense not asking for a mistrial but asking that there be no chance of a retrial?

UDOJI: Absolutely. They're arguing that the prosecution has so severely violated Mr. Williams' right that the prosecution, who in their conduct have so badly acted, that they should be barred from bringing the charges against Williams again. Again, Judge Coleman speaking right now and he hasn't addressed that specific point, at least not yet.

KAGAN: All right. Well, we're going to cut you loose so you can listen in to what the Judge Coleman has to say. We'll move on to other news. Adaora Udoji, thank you for that.

Worried about getting your tax return to the IRS on time? There is a faster, cheaper and easier way to do it than just standing in long lines at the post office? Who else besides Gerri Willis to tell us the details on our "Top Five Tips."

And you think you're feeling the pinch when it comes to see prices at the pump? Find out which city is paying the most. Look at those numbers!

Stay with CNN, the news continues after this.

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KAGAN: Three days and counting toward that tax deadline. If you haven't filed your tax return just yet you might want to avoid those long lines at the post office and think about filing your taxes electronically. There are some good tips though, of how to do that with e-filing.

And we've brought in our FN personal finance correspondent Gerri Willis, live in New York -- Gerri. GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. Good to see you. Well, step No. 1, you've got to get online. Look, about half of the people who have already filed, according to the latest IRS numbers, filed electronically. So you should, too. And here is why. The government is encouraging it with some free filing programs you can find at www.irs.gov. Click on their free online filing page, and there you'll get information on the Free File Alliance. They'll line you up with software providers that let you use their software gratis -- Daryn.

KAGAN: That means free for those of us who don't like to spend the big bucks.

WILLIS: That's right.

KAGAN: It also could help you cut down on the worry, you say?

WILLIS: Right. Well, lots of advantages to these programs. Listen to this. You get your refund faster. You can get your refund in 10 days instead of six to eight weeks. And you may be more accurate in your filing. Here is why. Normally when you send a paper filing to the IRS, they have to take your numbers and transpose them into their computers. Now, as you might guess, there is a lot of chance for error there, but if you file electronically it's just zapped right into the IRS computers. No chance for mistakes.

KAGAN: But you want to be smart about what you're doing?

WILLIS: Absolutely. Understand a couple of things here. The Free File Alliance, if you go this way, you may end up getting solicitations in the mail over the web for other services and products from those companies. You do not have to take advantage of them. No. 2, you may be tempted to pay your tax bill with a credit card. This is not a great idea. Our expert Grace Weinstein, author of the "Procrastinators Guide To Taxes Made Easy," told us why.

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GRACE WEINSTEIN, AUTHOR, "PROCRASTINATORS GUIDE TO TAXES MADE EASY": You should be aware that there is a charge. The government doesn't charge anything extra, but the credit card companies may charge what they call a "convenience fee," which is up to 2.49 percent of the amount of tax you owe. That can be a fairly hefty amount. And in addition to that, you would have interest charges if do you spread the payments over time.

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WILLIS: And Daryn, the last thing you want to do is add to credit card debt.

KAGAN: Yes, exactly. That's not going to help things. How do you sign it if you're filing electronically?

WILLIS: Well, yes, that is the big question. If you're filing electronically, where do you put your John Doe? Well, you don't have to. You can pick a pin, that's a series of letters and numbers that you're going to use to identify yourself. Just like you do when you're going to the bank and using one of the bank machines. It's the same kind of idea.

Now, if you really do want to use a signature, get Form 8453 from the IRS web site. And you can actually file with a signature. But the easy way, really Daryn, is to use the pin number.

KAGAN: Yes you know, finally some people get really concerned still when they're online, worrying about security.

WILLIS: Exactly. Well, I've got to tell you, you know, professional tax providers, accountants and others, have been using this system for a long, long time. And the IRS provides privacy and security seals to those professional tax filers who are doing it all of the time. You should feel pretty comfortable doing this. There haven't been any major problems so far, knock wood. But I got to tell you; it's certainly an efficient way to go -- Daryn.

KAGAN: OK, Ger, are yours done? Did you do your taxes?

WILLIS: Oh, yes -- well, we haven't filed electronically yet, but we've definitely done the first version of them.

KAGAN: It's always the tax experts that wait until the last second! All right. Thank you Gerri Willis, we'll see you later in the week.

WILLIS: All righty.

KAGAN: International news ahead, a Mid East meeting. President Bush and Hosni Mubarak, we'll get a live report from Crawford, Texas straight ahead.

Plus, what's new in the auto industry? We'll have a live report from the New York Auto Show when CNN LIVE TODAY continues.

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KAGAN: Let's take a look at the top stories at this hour.

China's foreign ministry urging Iraqi authorities to rescue seven Chinese civilians taken hostage in central Iraq last night. It's not clear why they were in Iraq. It's not clear why they were in Iraq, at least eight other international citizens are also being held hostage in Iraq.

Spanish police arrested have three more suspects in connection with last month's train bombings in Madrid. The three Moroccans were taken into custody in recent days but their arrests were just announced a short time ago. The attacks, one month ago yesterday, killed 190 people and wounded more than 1800.

In India, at least 21 people have been killed in a stampede for free clothing. Authorities in northern India say 5,000 people gather for a local politician's offer of a traditional Indian dress to mark his birthday. The victims were crushed when the crowds surged forward.

In Russia, the death toll from a Saturday's explosion in a Siberian mine may top 40. Rescue officials say there is little hope of finding any more survivors. Fifty-one miners were underground at the time of the methane explosion; eight survivors are hospitalized. Russia has launched an investigation into the tragedy.

As violence escalates in Iraq, the crisis in the Middle East is deepening. President Bush today seeks new diplomatic in roads in the Israeli-Palestinian conflict, by hosting Egyptian President Hosni Mubarak at his Texas ranch.

Our White House correspondent Suzanne Malveaux is in Crawford with a preview of those talks -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONENT: Well, Daryn, this really comes at a critical time for the president, as well as the Egyptian President Hosni Mubarak this week. That is because of the violence we've seen erupt in Iraq as well as the Israeli/Palestinian peace process, the road map that has come to a dead-end. Both of the leaders are eager to pledge their cooperation for change.

Now you may remember the historic summit that happened last June. That's when Mubarak and four other Arab leaders pledged their commitment to the U.S. road map. That is the plan that calls for Israelis and Palestinians to take reciprocal steps towards the creation of an independent Israeli and Palestinian states.

But with these talks dead, essentially Israel Prime Minister Ariel Sharon is now poised to present Mr. Bush with his own plan. That is expected to happen on Wednesday at visit to the White House. Sharon's disengagement plan calls for Israel to unilaterally pull out of Gaza and a small portion of the West Bank.

Now the U.S. is expected to approve this plan on the condition that it leaves the door open for future Israeli and Palestinian talks. And to make it work, however, Mr. Sharon and Mr. bush are counting on Mubarak to provide some security. Mubarak situation, he is facing his own problems, protests on the ground over the U.S.-led Iraqi occupation. At the same time President Bush has been pushing for Mubarak for reforms.

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GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The great and proud nation of Egypt has shown the way toward peace in the Middle East and now should show the way toward democracy in the Middle East.

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MALVEAUX: The president has long believed that it could become a terrorist breeding ground if he didn't see those kind of Democratic reforms. HE has been pushing Mubarak and other leaders to take those steps. But as you can imagine, Daryn, at top of the list, of course, that violence in the Middle East in Iraq as well as this peace initiative that they certainly hope to jumpstart this week -- Daryn. KAGAN: And especially with what is happening in Iraq. Is there any concern by this White House that the president is at his ranch and the appearance that gives instead of being at the White House?

MALVEAUX: There certainly was some criticism over the weekend about that. There were some who came forward saying that he wasn't doing enough or he didn't look engaged enough, that he didn't really feel that he was actively involved.

The president came out, he spoke out a number of times. His radio address, he said that he had been briefed by his national security council through these video conference calls.

But there were some people who felt perhaps he should have been in Washington during this time. We did get a pretty full briefing from the president yesterday about his feelings, about what's happened on the ground in Iraq.

KAGAN: Suzanne Malveaux in Crawford, Texas. Suzanne, thank you.

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