Return to Transcripts main page

CNN Live At Daybreak

Post-9/11 Security Lapses; FBI, Justice Department to Face 9/11 Panel

Aired April 13, 2004 - 06:30   ET

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

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


CAROL COSTELLO, CNN ANCHOR: Good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here are the latest headlines for you at this hour.
Testimony at the 9/11 Commission hearings today will center on the intelligence agencies and law enforcement. Attorney General John Ashcroft and former FBI Director Louie Freeh are among those expected to testify today.

Eight hostages have now been released in Iraq. The five Ukrainians and three Russians had been seized from their residence in Baghdad yesterday.

And the Associated Press is reporting that a U.S. Apache helicopter has gone down in flames near Fallujah. The Apache apparently was brought down by a rocket fired from the ground. There is no word on the condition of the two-man Apache crew.

The U.S. military has detained a top aide to radical Shiite leader Moqtada al-Sadr. The Shiite leader is believed to have spearheaded most of the attacks against coalition forces. The aide was taken into custody during a meeting of tribal leaders.

And about two hours ago, Vice President Dick Cheney arrived in China for some high-level meetings. He'll meet with China's president to discuss the situations in Iraq, North Korea and Taiwan.

(WEATHER BREAK)

COSTELLO: We know the 9/11 Commission will zero in on that now- famous declassified memo. But will it address the Saudi question? That's what "Boston Globe" reporter Craig Unger is wondering this morning. He says he's turned up evidence that at least 140 Saudis were flown out of the United States two days after 9/11 at a time when airplanes were grounded by government order. If that's true, why? And did the president allow it?

Craig Unger is joining us live from New York.

And, Craig, you call this the single-most egregious security lapse related to the attacks. How so?

CRAIG UNGER, "THE BOSTON GLOBE": Well, it's quite possible. Remember, this is after September 11. Reasonable people can argue about how much terrorism should have been on the president's radar screen beforehand. But immediately afterwards, it appears that the White House authorized the departure of I found a total of eight airplanes stopping in 12 American cities, taking 140 passengers, most of them Saudis, many members of the royal family, 24 members of the bin Laden family among them. And there was a potential treasure trove of intelligence here.

We know that 15 out of 19 of the hijackers were Saudis. We know that the Saudis played a big role in financing terrorism. Why were these people not questioned?

COSTELLO: Well...

UNGER: Why were they waived through?

COSTELLO: Well, Craig, if this is true, why did they want to leave?

UNGER: Why did they want to leave? Their stated reason has essentially been that they feared for their lives in America. Whether that's the case or not, I frankly don't know of any real threats of attack on them, but it was possible certainly to protect them and to ask them questions.

Let's assume that everyone's innocent. I think one certainly has to assume that. At the same time, this is the greatest national security crisis we've faced in my lifetime. This is where the investigation begins.

COSTELLO: But, Craig, the White House is denying this ever happened. The FBI denies it ever took place. The FAA has absolutely no record of it. This sort of sounds like a conspiracy theory. How credible are your sources?

UNGER: I spoke to two men, who were on the first flight on September 13 from Tampa to Lexington on the record. They were quite credible. In addition, I have passenger lists. The commission has passenger lists for four of these flights. I also spoke to FBI agents who were involved in identifying but not interviewing passengers as they left.

There is an enormous amount of evidence that these flights took place. I have photos of the interior of one of the planes.

COSTELLO: The sources that you spoke to -- one was an ex-FBI agent, the other a Tampa police officer. What can you tell us about those two men?

UNGER: They were on the first flight from Tampa to Lexington as security officers, and this flight took place at a time during which American private aviation was still locked down. This required White House approval, and Richard Clarke in an interview in my book and later, and in his testimony before the 9/11 Commission, did say that he was party to discussions in which authorization was discussed. This is while he was in the situation room in the White House. COSTELLO: But I guess I'm asking -- the White House is absolutely denying this ever happened. If it gave approval, why then would it turn around and deny it when there were eyewitnesses?

UNGER: Well, you'll have to ask the White House that. In other words, I am certain these flights took place. There is absolutely no question about it. I think the White House's relationship with the Saudis is exactly what's in question. Were they doing favors for the Saudis? The Bush family has had a long and close relationship with the Saudi royal family. It's long been close, personal friends with Prince Bandar.

And in my book, I trace $1.4 billion in investments and contracts that went from the royal house of Saud to companies in which the Bushes and their allies have had prominent positions.

So, I think there's a real question as to whether the Bush White House was simply performing a favor for Saudi friends, or were they looking at a very serious national security question?

COSTELLO: And in the spirit of full disclosure, you just mentioned you are writing a book about this. Some critics might wonder...

UNGER: It...

COSTELLO: Go ahead.

UNGER: Oh, no, the book has been published: "House of Bush, House of Saud."

COSTELLO: All right, Craig Unger joining us live from New York; a reporter for "The Boston Globe" as well.

We're getting new pictures in from Iraq right now. We told you just a few minutes ago about an Apache helicopter that was apparently shot down.

Our senior international editor, David Clinch, is here to tell us more about this.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Right. Actually, what we're seeing here now is not the helicopter. What we've been talking about most days last week and again today is this pool video we get from Fallujah.

Let me just very quickly explain why we do this with me on the set here rather than a Baghdad reporter. This pool video comes directly to us in Atlanta, bypassing our reporters in Baghdad. We have to view the video, and then tell them what we see. So, as we're seeing this, we're getting a description from our pool producer in Fallujah of what we're seeing here.

This is the aftermath of an attack on a Marine location in Fallujah on Monday, which was described as either a mortar, a rocket attack hitting a house, where Marines were located in central Fallujah. Our pool reporter -- or producer, I should say, indicating to us that at least two Marines were killed and eight injured in that attack. Then followed by what was described as an hour-long firefight with Marines firing at militants, as they thought, around the location of the mortar attack.

All of this happening, of course -- and we spoke about this earlier -- while what was described by the U.S. Marines as a cease- fire, a unilateral cease-fire on their part, to allow for negotiations is still -- quote -- "holding."

Now, obviously, what is really the case from the Marines' point of view is they fire when they're fired upon, and they were fired upon yesterday in Fallujah around 8:00 p.m. local time last night, and they fired back -- big time, if you'll excuse the phrase.

But they put themselves in positions -- we can see clearly here -- on the buildings, looking out in the direction of where the mortars came, and fired towards the locations from the mortar -- from where the mortar came. And you will see them aiming their small and larger arms in the direction from which the attack came.

Again, our producer describing a dramatic scene, lasting an hour, upwards of an hour after the initial attack as they fired out towards the militants.

COSTELLO: Do we know what kind of weapons the enemy has here?

CLINCH: Well, we talked about this last week. We know from eyewitness reports from the Marines themselves, and from our own material, and from material we've seen on Arab networks from the other side, from the militant side, that at least some of these militants are carrying quite sophisticated light arms, and in some cases obviously RPGs.

The Marines were telling us last week as they went into Fallujah they were seeing strong indications that -- again, from their point of view -- that at least some of these militants were former Saddam loyalists or army members, who not only had retained their trained, but in some cases obviously their weapons.

And whether these mortars or rockets were from previous army stocks, we don't know, of course, but the firefight clearly going in both directions with light arms for an hour or more.

COSTELLO: And before you go -- and we're going to continue to look at these pictures -- I do want to talk more about this Apache helicopter that apparently has gone down this morning.

CLINCH: Right. We are hearing -- and, again, this the cloudy world of Iraq at the moment -- of three separate Apache incidents over three days. One we've already confirmed on Sunday. Then we've seen video within the last few hours being shown on Al Jazeera, and we're going to check on this, but they say this was an Apache that went down Monday. And now, we're hearing from the AP that they're seeing a helicopter, an Apache, down today. Not clear whether those are three separate incidents, not clear whether those were three separate Apaches, or whether all came down in hostile fire. But obviously, at least one of them confirmed killing the crew of two on Sunday. So, a dangerous world for those Apache crews as well.

COSTELLO: All right, David Clinch joining us with these pictures just in to CNN this morning.

CLINCH: Yes.

COSTELLO: Thank you very much.

We're going to take a short break. DAYBREAK will be right back after this.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:44 Eastern Time. Here's what's all new this morning.

Another big day at the 9/11 hearings. Ex-FBI chief Louie Freeh, Attorney General John Ashcroft, and his predecessor, Janet Reno, will take turns in the hot seat today.

The Associated Press is reporting a U.S. Apache helicopter on fire outside of Fallujah, Iraq. Witnesses say it was it hit by a rocket from the ground. No word right now on casualties. Also, Reuters is reporting a bomb attack on a convoy south of Baghdad. It has killed a U.S. soldier there. When we get more information on this, of course, we'll pass it along.

The U.S. military has detained a top aide to radical Shiite leader Moqtada al-Sadr. He was taken into custody while attending a meeting of tribal leaders.

In money news, you can expect to start paying 50 cents more for milk soon. The price hike is due to a combination of factors, including smaller herds and higher feed prices.

In the world of sports, Tiger Woods goes from the green jacket in Augusta, Georgia, to the Green Berets in Fort Bragg, North Carolina. He's getting a feel for how Special Ops do their thing.

In culture, another big deal for Donald Trump. The "L.A. Times" reports that his salary will double for the second and third installments of "The Apprentice." Trump will make about $1 million per episode.

CHAD MYERS, CNN METEOROLOGIST: Wait. His salary goes up?

COSTELLO: His salary goes up.

MYERS: He doesn't need more money.

COSTELLO: Everybody needs more money. MYERS: I guess.

(WEATHER BREAK)

COSTELLO: And those are the latest headlines. Thank you, Chad.

Still to come on DAYBREAK, in business buzz an investigation into a major media company's advertising sales.

And, this may seem like an ordinary herd of zebras in Africa, but -- well, there you see the newest member of the family. We'll show you more after this.

(COMMERCIAL BREAK)

MYERS: Time to win a coffee mug. Maybe that one right there with Carol's lipstick on it.

COSTELLO: Oh, lordy!

MYERS: I'll wipe it off.

Here are your two questions, and you have to answer them both.

The price of a gallon of milk is expected to increase this week, but by how much?

And answer question No. 2: Which military unit is expected to stay in Iraq for an extra 90 days?

E-mail your answers to Daybreak@CNN.com. There is not a link there on CNN.com. Just go right to the e-mail, type in Daybreak@CNN.com, and start answering. Type, type, type.

COSTELLO: And at 6:10 Eastern Time tomorrow, we will announce the winner to this round of DAYBREAK quiz.

MYERS: I got an e-mail from Paris, Texas (sic), from the winner yesterday. It's snowing in Paris, Tennessee this morning.

COSTELLO: In Tennessee?

MYERS: Paris, Tennessee is getting some snow coming down right now.

COSTELLO: That's just wrong!

Time for a little business buzz right now. The SEC is reportedly ready to crack down on our parent company: Time Warner.

Carrie Lee reports live from the Nasdaq Marketsite.

What's up with this -- Carrie?

CARRIE LEE, CNN FINANCIAL NEWS: We'll see if this has any effect on the stock price, Carol. But "The Washington Post" is reporting today that the Securities and Exchange Commission is preparing to formally accuse Time Warner of improperly booking over $400 million in advertising revenue.

Now, the case alleges that Time Warner and its America Online unit misled investors about the financial health of the company by pumping up ad sales in numerous deals and by inflating AOL subscriber numbers. Basically, the "Post" says that the company improperly booked revenue related to an ad deal with German media company Bertelsmann.

So, the SEC plans to file a formal -- or send, rather, a formal letter of notification to Time Warner by early summer.

Carol, there has been talk about this for quite some time. So, it'll be interesting to see how much of this has really factored into the company's stock price, where our company could end up paying a fine to settle all of this. But we should know more once the summer rolls around.

COSTELLO: All right, Carrie Lee live from the Nasdaq Marketsite.

The FBI and CIA will be under scrutiny today as the 9/11 Commission presses for more answers on how or if the terrorist attacks on 9/11 could have been avoided. Former FBI Director Louie Freeh and Attorney General John Ashcroft are among those scheduled to testify.

CNN's Bill Prasad is in Washington with more for you.

(BEGIN VIDEOTAPE)

BILL PRASAD, CNN CORRESPONDENT (voice-over): It was a tranquil summer in 2001 in Washington, but a storm of intelligence was brewing, suggesting terrorist activity and sparking concern at the CIA.

UNIDENTIFIED MALE: Why aren't we seeing a commensurate reaction out of FBI and justice to try to meet this threat?

PRASAD: It's a question Attorney General John Ashcroft may field. Sources say he'll face criticism from then acting FBI Director Thomas Pickard, who's expected to tell the panel Ashcroft had little interest in counterterrorism before 9/11.

The Bush and Clinton law enforcement teams may also be asked whether the U.S. should set up a British-style MI5 domestic spy agency and take that job away from the FBI.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I think the hearings are good things, particularly when they address any weaknesses in the system.

PRASAD: Commissioners will also want to know about FBI al Qaeda- related investigations, mentioned in the August 6, 2001 presidential daily brief -- or PDB. Also, why didn't the CIA share its information about two al Qaeda suspects in the U.S.?

JOHN LEHMAN, 9/11 COMMISSION MEMBER: Their whole internal systems and culture was not to share anything.

PRASAD: It's a culture that the panel may conclude contributed to what some call one of the greatest intelligence failures in U.S. history.

(on camera): Tonight, President Bush will hold his first primetime news conference of the year. Reporters are expected to ask him about that PDB and intelligence problems.

In Washington, I'm Bill Prasad.

(END VIDEOTAPE)

COSTELLO: And the president's news conference will be held at 8:30 p.m. Eastern Time. Of course, CNN will carry that live.

Chad joins me for "The Lightning Round" coming your way next, but first the latest headlines.

(COMMERCIAL BREAK)

MYERS: That little Ricky Schroeder is 34.

COSTELLO: Little Ricky is all grown up.

MYERS: Yes.

COSTELLO: It is time for our "Lightning Round."

One of these zebras is not like the other.

MYERS: Yes, it needs a little paint.

COSTELLO: Yes, certainly. Wildlife experts cannot explain why this month-old zebra has no stripes. The good news is the zebra doesn't seem to notice he's different than the rest of the herd. He fits in quite well, even though he looks different. Could this be a lesson for all of humanity, Chad?

MYERS: I'm not even going to try that one. He looks like a happy little zebra, and that's all that counts.

COSTELLO: He certainly does.

MYERS: Yes.

COSTELLO: Happy birthday to Yoda. You can see Yoda. He's on the left. This is a genetically-modified dwarf mouse at the University of Michigan, and the mouse just turned 4. What's the big deal, you say? Well, researchers say that's like 130-plus years in human years. Yoda's looking good, and just imagine if they could genetically modify humans to live that long.

MYERS: We really would run out of social security. Yikes!

COSTELLO: Something did not settle well with Lauren Hutton. The actress was airlifted to the Heart Hospital of New Mexico with chest pain, but doctors later said her symptoms were most likely caused by indigestion. Hutton issued a statement saying it is important for women to seek medical treatment when they experience chest pain. And that is for certain, but we're glad she's OK this morning.

MYERS: Absolutely.

COSTELLO: I'm Carol Costello with Chad Myers. "AMERICAN MORNING" starts right now.

MYERS: See you tomorrow, Carol.

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 13, 2004 - 06:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here are the latest headlines for you at this hour.
Testimony at the 9/11 Commission hearings today will center on the intelligence agencies and law enforcement. Attorney General John Ashcroft and former FBI Director Louie Freeh are among those expected to testify today.

Eight hostages have now been released in Iraq. The five Ukrainians and three Russians had been seized from their residence in Baghdad yesterday.

And the Associated Press is reporting that a U.S. Apache helicopter has gone down in flames near Fallujah. The Apache apparently was brought down by a rocket fired from the ground. There is no word on the condition of the two-man Apache crew.

The U.S. military has detained a top aide to radical Shiite leader Moqtada al-Sadr. The Shiite leader is believed to have spearheaded most of the attacks against coalition forces. The aide was taken into custody during a meeting of tribal leaders.

And about two hours ago, Vice President Dick Cheney arrived in China for some high-level meetings. He'll meet with China's president to discuss the situations in Iraq, North Korea and Taiwan.

(WEATHER BREAK)

COSTELLO: We know the 9/11 Commission will zero in on that now- famous declassified memo. But will it address the Saudi question? That's what "Boston Globe" reporter Craig Unger is wondering this morning. He says he's turned up evidence that at least 140 Saudis were flown out of the United States two days after 9/11 at a time when airplanes were grounded by government order. If that's true, why? And did the president allow it?

Craig Unger is joining us live from New York.

And, Craig, you call this the single-most egregious security lapse related to the attacks. How so?

CRAIG UNGER, "THE BOSTON GLOBE": Well, it's quite possible. Remember, this is after September 11. Reasonable people can argue about how much terrorism should have been on the president's radar screen beforehand. But immediately afterwards, it appears that the White House authorized the departure of I found a total of eight airplanes stopping in 12 American cities, taking 140 passengers, most of them Saudis, many members of the royal family, 24 members of the bin Laden family among them. And there was a potential treasure trove of intelligence here.

We know that 15 out of 19 of the hijackers were Saudis. We know that the Saudis played a big role in financing terrorism. Why were these people not questioned?

COSTELLO: Well...

UNGER: Why were they waived through?

COSTELLO: Well, Craig, if this is true, why did they want to leave?

UNGER: Why did they want to leave? Their stated reason has essentially been that they feared for their lives in America. Whether that's the case or not, I frankly don't know of any real threats of attack on them, but it was possible certainly to protect them and to ask them questions.

Let's assume that everyone's innocent. I think one certainly has to assume that. At the same time, this is the greatest national security crisis we've faced in my lifetime. This is where the investigation begins.

COSTELLO: But, Craig, the White House is denying this ever happened. The FBI denies it ever took place. The FAA has absolutely no record of it. This sort of sounds like a conspiracy theory. How credible are your sources?

UNGER: I spoke to two men, who were on the first flight on September 13 from Tampa to Lexington on the record. They were quite credible. In addition, I have passenger lists. The commission has passenger lists for four of these flights. I also spoke to FBI agents who were involved in identifying but not interviewing passengers as they left.

There is an enormous amount of evidence that these flights took place. I have photos of the interior of one of the planes.

COSTELLO: The sources that you spoke to -- one was an ex-FBI agent, the other a Tampa police officer. What can you tell us about those two men?

UNGER: They were on the first flight from Tampa to Lexington as security officers, and this flight took place at a time during which American private aviation was still locked down. This required White House approval, and Richard Clarke in an interview in my book and later, and in his testimony before the 9/11 Commission, did say that he was party to discussions in which authorization was discussed. This is while he was in the situation room in the White House. COSTELLO: But I guess I'm asking -- the White House is absolutely denying this ever happened. If it gave approval, why then would it turn around and deny it when there were eyewitnesses?

UNGER: Well, you'll have to ask the White House that. In other words, I am certain these flights took place. There is absolutely no question about it. I think the White House's relationship with the Saudis is exactly what's in question. Were they doing favors for the Saudis? The Bush family has had a long and close relationship with the Saudi royal family. It's long been close, personal friends with Prince Bandar.

And in my book, I trace $1.4 billion in investments and contracts that went from the royal house of Saud to companies in which the Bushes and their allies have had prominent positions.

So, I think there's a real question as to whether the Bush White House was simply performing a favor for Saudi friends, or were they looking at a very serious national security question?

COSTELLO: And in the spirit of full disclosure, you just mentioned you are writing a book about this. Some critics might wonder...

UNGER: It...

COSTELLO: Go ahead.

UNGER: Oh, no, the book has been published: "House of Bush, House of Saud."

COSTELLO: All right, Craig Unger joining us live from New York; a reporter for "The Boston Globe" as well.

We're getting new pictures in from Iraq right now. We told you just a few minutes ago about an Apache helicopter that was apparently shot down.

Our senior international editor, David Clinch, is here to tell us more about this.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Right. Actually, what we're seeing here now is not the helicopter. What we've been talking about most days last week and again today is this pool video we get from Fallujah.

Let me just very quickly explain why we do this with me on the set here rather than a Baghdad reporter. This pool video comes directly to us in Atlanta, bypassing our reporters in Baghdad. We have to view the video, and then tell them what we see. So, as we're seeing this, we're getting a description from our pool producer in Fallujah of what we're seeing here.

This is the aftermath of an attack on a Marine location in Fallujah on Monday, which was described as either a mortar, a rocket attack hitting a house, where Marines were located in central Fallujah. Our pool reporter -- or producer, I should say, indicating to us that at least two Marines were killed and eight injured in that attack. Then followed by what was described as an hour-long firefight with Marines firing at militants, as they thought, around the location of the mortar attack.

All of this happening, of course -- and we spoke about this earlier -- while what was described by the U.S. Marines as a cease- fire, a unilateral cease-fire on their part, to allow for negotiations is still -- quote -- "holding."

Now, obviously, what is really the case from the Marines' point of view is they fire when they're fired upon, and they were fired upon yesterday in Fallujah around 8:00 p.m. local time last night, and they fired back -- big time, if you'll excuse the phrase.

But they put themselves in positions -- we can see clearly here -- on the buildings, looking out in the direction of where the mortars came, and fired towards the locations from the mortar -- from where the mortar came. And you will see them aiming their small and larger arms in the direction from which the attack came.

Again, our producer describing a dramatic scene, lasting an hour, upwards of an hour after the initial attack as they fired out towards the militants.

COSTELLO: Do we know what kind of weapons the enemy has here?

CLINCH: Well, we talked about this last week. We know from eyewitness reports from the Marines themselves, and from our own material, and from material we've seen on Arab networks from the other side, from the militant side, that at least some of these militants are carrying quite sophisticated light arms, and in some cases obviously RPGs.

The Marines were telling us last week as they went into Fallujah they were seeing strong indications that -- again, from their point of view -- that at least some of these militants were former Saddam loyalists or army members, who not only had retained their trained, but in some cases obviously their weapons.

And whether these mortars or rockets were from previous army stocks, we don't know, of course, but the firefight clearly going in both directions with light arms for an hour or more.

COSTELLO: And before you go -- and we're going to continue to look at these pictures -- I do want to talk more about this Apache helicopter that apparently has gone down this morning.

CLINCH: Right. We are hearing -- and, again, this the cloudy world of Iraq at the moment -- of three separate Apache incidents over three days. One we've already confirmed on Sunday. Then we've seen video within the last few hours being shown on Al Jazeera, and we're going to check on this, but they say this was an Apache that went down Monday. And now, we're hearing from the AP that they're seeing a helicopter, an Apache, down today. Not clear whether those are three separate incidents, not clear whether those were three separate Apaches, or whether all came down in hostile fire. But obviously, at least one of them confirmed killing the crew of two on Sunday. So, a dangerous world for those Apache crews as well.

COSTELLO: All right, David Clinch joining us with these pictures just in to CNN this morning.

CLINCH: Yes.

COSTELLO: Thank you very much.

We're going to take a short break. DAYBREAK will be right back after this.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:44 Eastern Time. Here's what's all new this morning.

Another big day at the 9/11 hearings. Ex-FBI chief Louie Freeh, Attorney General John Ashcroft, and his predecessor, Janet Reno, will take turns in the hot seat today.

The Associated Press is reporting a U.S. Apache helicopter on fire outside of Fallujah, Iraq. Witnesses say it was it hit by a rocket from the ground. No word right now on casualties. Also, Reuters is reporting a bomb attack on a convoy south of Baghdad. It has killed a U.S. soldier there. When we get more information on this, of course, we'll pass it along.

The U.S. military has detained a top aide to radical Shiite leader Moqtada al-Sadr. He was taken into custody while attending a meeting of tribal leaders.

In money news, you can expect to start paying 50 cents more for milk soon. The price hike is due to a combination of factors, including smaller herds and higher feed prices.

In the world of sports, Tiger Woods goes from the green jacket in Augusta, Georgia, to the Green Berets in Fort Bragg, North Carolina. He's getting a feel for how Special Ops do their thing.

In culture, another big deal for Donald Trump. The "L.A. Times" reports that his salary will double for the second and third installments of "The Apprentice." Trump will make about $1 million per episode.

CHAD MYERS, CNN METEOROLOGIST: Wait. His salary goes up?

COSTELLO: His salary goes up.

MYERS: He doesn't need more money.

COSTELLO: Everybody needs more money. MYERS: I guess.

(WEATHER BREAK)

COSTELLO: And those are the latest headlines. Thank you, Chad.

Still to come on DAYBREAK, in business buzz an investigation into a major media company's advertising sales.

And, this may seem like an ordinary herd of zebras in Africa, but -- well, there you see the newest member of the family. We'll show you more after this.

(COMMERCIAL BREAK)

MYERS: Time to win a coffee mug. Maybe that one right there with Carol's lipstick on it.

COSTELLO: Oh, lordy!

MYERS: I'll wipe it off.

Here are your two questions, and you have to answer them both.

The price of a gallon of milk is expected to increase this week, but by how much?

And answer question No. 2: Which military unit is expected to stay in Iraq for an extra 90 days?

E-mail your answers to Daybreak@CNN.com. There is not a link there on CNN.com. Just go right to the e-mail, type in Daybreak@CNN.com, and start answering. Type, type, type.

COSTELLO: And at 6:10 Eastern Time tomorrow, we will announce the winner to this round of DAYBREAK quiz.

MYERS: I got an e-mail from Paris, Texas (sic), from the winner yesterday. It's snowing in Paris, Tennessee this morning.

COSTELLO: In Tennessee?

MYERS: Paris, Tennessee is getting some snow coming down right now.

COSTELLO: That's just wrong!

Time for a little business buzz right now. The SEC is reportedly ready to crack down on our parent company: Time Warner.

Carrie Lee reports live from the Nasdaq Marketsite.

What's up with this -- Carrie?

CARRIE LEE, CNN FINANCIAL NEWS: We'll see if this has any effect on the stock price, Carol. But "The Washington Post" is reporting today that the Securities and Exchange Commission is preparing to formally accuse Time Warner of improperly booking over $400 million in advertising revenue.

Now, the case alleges that Time Warner and its America Online unit misled investors about the financial health of the company by pumping up ad sales in numerous deals and by inflating AOL subscriber numbers. Basically, the "Post" says that the company improperly booked revenue related to an ad deal with German media company Bertelsmann.

So, the SEC plans to file a formal -- or send, rather, a formal letter of notification to Time Warner by early summer.

Carol, there has been talk about this for quite some time. So, it'll be interesting to see how much of this has really factored into the company's stock price, where our company could end up paying a fine to settle all of this. But we should know more once the summer rolls around.

COSTELLO: All right, Carrie Lee live from the Nasdaq Marketsite.

The FBI and CIA will be under scrutiny today as the 9/11 Commission presses for more answers on how or if the terrorist attacks on 9/11 could have been avoided. Former FBI Director Louie Freeh and Attorney General John Ashcroft are among those scheduled to testify.

CNN's Bill Prasad is in Washington with more for you.

(BEGIN VIDEOTAPE)

BILL PRASAD, CNN CORRESPONDENT (voice-over): It was a tranquil summer in 2001 in Washington, but a storm of intelligence was brewing, suggesting terrorist activity and sparking concern at the CIA.

UNIDENTIFIED MALE: Why aren't we seeing a commensurate reaction out of FBI and justice to try to meet this threat?

PRASAD: It's a question Attorney General John Ashcroft may field. Sources say he'll face criticism from then acting FBI Director Thomas Pickard, who's expected to tell the panel Ashcroft had little interest in counterterrorism before 9/11.

The Bush and Clinton law enforcement teams may also be asked whether the U.S. should set up a British-style MI5 domestic spy agency and take that job away from the FBI.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I think the hearings are good things, particularly when they address any weaknesses in the system.

PRASAD: Commissioners will also want to know about FBI al Qaeda- related investigations, mentioned in the August 6, 2001 presidential daily brief -- or PDB. Also, why didn't the CIA share its information about two al Qaeda suspects in the U.S.?

JOHN LEHMAN, 9/11 COMMISSION MEMBER: Their whole internal systems and culture was not to share anything.

PRASAD: It's a culture that the panel may conclude contributed to what some call one of the greatest intelligence failures in U.S. history.

(on camera): Tonight, President Bush will hold his first primetime news conference of the year. Reporters are expected to ask him about that PDB and intelligence problems.

In Washington, I'm Bill Prasad.

(END VIDEOTAPE)

COSTELLO: And the president's news conference will be held at 8:30 p.m. Eastern Time. Of course, CNN will carry that live.

Chad joins me for "The Lightning Round" coming your way next, but first the latest headlines.

(COMMERCIAL BREAK)

MYERS: That little Ricky Schroeder is 34.

COSTELLO: Little Ricky is all grown up.

MYERS: Yes.

COSTELLO: It is time for our "Lightning Round."

One of these zebras is not like the other.

MYERS: Yes, it needs a little paint.

COSTELLO: Yes, certainly. Wildlife experts cannot explain why this month-old zebra has no stripes. The good news is the zebra doesn't seem to notice he's different than the rest of the herd. He fits in quite well, even though he looks different. Could this be a lesson for all of humanity, Chad?

MYERS: I'm not even going to try that one. He looks like a happy little zebra, and that's all that counts.

COSTELLO: He certainly does.

MYERS: Yes.

COSTELLO: Happy birthday to Yoda. You can see Yoda. He's on the left. This is a genetically-modified dwarf mouse at the University of Michigan, and the mouse just turned 4. What's the big deal, you say? Well, researchers say that's like 130-plus years in human years. Yoda's looking good, and just imagine if they could genetically modify humans to live that long.

MYERS: We really would run out of social security. Yikes!

COSTELLO: Something did not settle well with Lauren Hutton. The actress was airlifted to the Heart Hospital of New Mexico with chest pain, but doctors later said her symptoms were most likely caused by indigestion. Hutton issued a statement saying it is important for women to seek medical treatment when they experience chest pain. And that is for certain, but we're glad she's OK this morning.

MYERS: Absolutely.

COSTELLO: I'm Carol Costello with Chad Myers. "AMERICAN MORNING" starts right now.

MYERS: See you tomorrow, Carol.

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