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CNN Live At Daybreak

Finger Pointing Will Not Stop at Attorney General Ashcroft; Two U.S. Marines killed During Battle With Iraqi Insurgents

Aired April 13, 2004 - 05:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: A major development out of Baghdad this morning. U.S. troops detain a top aide to Shiite cleric Muqtada al-Sadr. He is behind the violent Shiite uprising that swept across parts of Iraq.
Good morning.

From the CNN global headquarters in Atlanta, this is DAYBREAK for Tuesday, April 13.

I'm Carol Costello.

Here are the latest headlines now.

Fighting between U.S. forces and Iraqi insurgents flares again in Fallujah. At least two Marines were killed and either others wounded in the latest attack. U.S. troops in Iraq have detained a top aide to an anti-American cleric. Muqtada al-Sadr's aide was picked up as he was attending a tribal conference in Baghdad today.

President Bush hopes to calm Americans about the rising U.S. casualties in Iraq and explain the next steps in the United States plans there. He'll hold a prime time news conference tonight at 8:30 Eastern.

Some of the biggest names in U.S. law enforcement past and present face tough questions from the 9/11 Commission today. The panel wants to know why the FBI was unable to detect the 9/11 plot.

And Israeli Prime Minister Ariel Sharon arrives in Washington today to prepare for a meeting with President Bush tomorrow. Mr. Sharon hopes to win support for an Israeli plan to withdraw from Gaza.

And suspected -- and suspended, rather -- University of Colorado football coach Gary Barnett prepares for today's appearance before investigators looking into the athletic department's sex scandal.

To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Former and current Justice Department and intelligence officials plan to offer a spirited defense of their actions leading up to the terrorist attacks. Among those testifying today before the 9/11 Commission are Louis Freeh, who was FBI director from September 1993 until June of 2001; Cofer Black, who headed the CIA's Counter- Terrorism Center between 1999 and 2002; and Attorney General John Ashcroft.

Ashcroft is expected to face criticism he was more interested in issues like illegal drugs and gun crimes than terrorism before 9/11.

But as CNN's David Ensor reports, the finger pointing will not stop at the attorney general.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The nation's top law enforcement officials and their predecessors face a lot of questions, especially for the FBI, about what it didn't do in the summer of 2001.

TIMOTHY ROEMER, 9/11 COMMISSION MEMBER: It is a crescendo type activity that is causing the CIA director to have, so to speak, his hair on fire. Why aren't we seeing a commensurate reaction out of FBI and Justice to try to meet this threat?

ENSOR: Commissioners want to know more about the 70 FBI-al Qaeda related investigations in the summer of 2001, referred to last week by National Security Advisor Condoleezza Rice and contained in the now famous August 6th presidential daily brief from the CIA. Also, why didn't law enforcement connect the dots between Zacarias Moussaoui and the flight training mentioned in the FBI's Phoenix memo? Why didn't the CIA share its information about two al Qaeda suspects in the United States?

According to Commission sources, Attorney General John Ashcroft will face criticism from then acting FBI Director Thomas Pickard. He has said Ashcroft had little interest in counter-terrorism before 9/11, a charge the attorney general's aides reject.

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.

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

ENSOR (on camera): One commissioner told CNN everyone shares some blame for failing to stop 9/11 and he believes the final report, due in July, should name names.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: By now, we all know about the presidential daily briefing of August 6, 2001. But what about the senior executive intelligence brief sent out a day later? There is criticism about omissions in the document, which went to senior government peacemakers. According to Associated Press, the second memo did not mention the 70 FBI investigations into al Qaeda activities nor the May 2001 threat of a U.S.-based attack, nor FBI concerns over surveillance of New York buildings. Bush administration officials say memos to senior executives typically do not include the sensitive information found in the president's briefings.

CNN's live coverage of today's 9/11 Commission hearing begins at 9:00 a.m. Eastern.

President Bush will use tonight's prime time news conference to talk about that pre-September 11 memo warning of al Qaeda threats and we will have that news conference for you live at 8:30 p.m. Eastern.

As the nation gears up for another round of testimony before the 9/11 Commission, tell us what you think. Send us your e-mails. The address is daybreak@cnn.com.

Accusations of racial profiling on one college campus tops our look at stories making news across America this Tuesday.

At the University of Virginia, a search for a serial rapist has turned into a debate over police procedures. At least one student has refused to take part in the investigation. He claims the police are unfairly profiling African-American men. Police have been gathering DNA samples of men who match the description of the suspect.

The grand jury hearing the Michael Jackson molestation case will take the next two days off. They have heard from more than a dozen witnesses, including Jackson's 14-year-old accuser. A grand jury indictment would put the case on a fast track to trial. If Jackson is not indicted, prosecutors will go ahead with the preliminary hearing or drop the charges.

In Kentucky, the state's senate is expected to vote today to approve a constitutional amendment banning same-sex marriages. The statehouse has already passed the measure that would put the matter on the ballot in November. The bill also calls for a ban on same-sex civil unions.

The U.S. casualty count keeps going up in Iraq. Two U.S. Marines were killed during a battle with Iraqi insurgents.

CNN Baghdad bureau chief Jane Arraf joins us live with that and other developments, like the detainment of this aide to Sheikh al-Sadr -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Yes, Carol, U.S. forces came in and detained Hazen al-Aaraji. Now he is an aide in the district of Khadimiya, the head of the Sadr Khadimiya office. Khadimiya is one of the main, the main, in fact, Shia neighborhoods in Baghdad. It's home to some of the holiest shrines in the world to Shia Muslims, and he was the head of the office that's loyal to Muqtada al-Sadr, the radical Shia leader whom the U.S. has vowed to capture or kill.

al-Aaraji was detained, according to the military, but not yet, it's not yet clear whether he has been arrested. He was taken from this hotel complex after meeting with tribal sheikhs, who later demanded his release.

Now, that obviously is going to increase tension between the U.S. forces and the Sadr people. That stand-off still going on in many places, particularly in Najaf, where U.S. troops are building up forces in the event that they have to go in militarily to grab him.

Now in Fallujah, west of Baghdad, as you mentioned, two Marines killed last night and eight others wounded in an intense firefight with insurgents. This despite a general cease-fire to allow civilians to bury their dead and get aide -- Carol.

COSTELLO: Jane, back to this aide to al-Sadr. Many people say al-Sadr is not the one calling the shots.

How powerful is this aide?

ARRAF: The Sadr organization essentially has offices any -- everywhere and aides everywhere. The fact that he was the head of the office in Khadimiya, which is next to Sadr City, would be the most important. Baghdad is fairly indicative. But, also, the fact that he has been able to go around the city freely, seemingly, without being arrested so far is also an indication.

Now, the U.S. military tells us that they have no information yet as to whether he will be held and they can't tell us yet whether there had been a warrant for his arrest. But they have declared the Sadr forces hostile to the coalition, which means essentially anyone who works with or is affiliated with Muqtada al-Sadr is liable to be arrested, a very delicate, potentially dangerous situation -- Carol.

COSTELLO: Jane Arraf live from Baghdad this morning.

Other developments in our situation report, at least 27 foreign nationals are missing or being held hostage right now in Iraq, including nine Americans. That tops the situation report. The latest kidnapping took place in Baghdad. Gunmen seized three Russian and five Ukrainian contractors from their residence.

In the meantime, seven Chinese hostages are now safe. They were freed by their kidnappers after being held for one day.

The U.S. commander in Iraq says he needs 10,000 more U.S. troops to help fight the insurgency. That means troops scheduled to come home will have to stay a while longer.

Six American civilians who work for a subsidiary of the Houston- based Halliburton Company are still missing in Iraq. They went missing after attacks on truck convoys over the weekend. Two other workers arrived home in Houston yesterday. They were attacked by Iraqi insurgents outside of Baghdad.

In the meantime, the fate of Thomas Hamil, who was kidnapped during am ambush Friday, is still unclear.

CNN's Gary Tuchman traveled to Hamil's hometown in Mississippi.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): In a city with only 2,400 people this was a large gathering.

UNIDENTIFIED MALE: You will hear and answer our prayers.

TUCHMAN: One of Macon, Mississippi's own is in peril. Thomas Hamill took a job driving trucks in Iraq. This video was taken by an Australian news crew after he was kidnapped by Iraqi insurgents.

UNIDENTIFIED MALE: What happened.

THOMAS HAMILL: They attacked our convoy. That's all I'm going to say.

UNIDENTIFIED MALE: OK.

TUCHMAN: Hamill's attackers threatened to kill him this past weekend. His wife and two children in seclusion in this home do not know if he is still alive. Macon Mayor Dorothy Hines is close friends with Hamill's wife Kelly (ph).

MAYOR DOROTHY HINES, MACON, MISSISSIPPI: He's just a good old country boy and he just, you know, just wanted to try to get a job and do something that would help his family because they've had a lot of problems with their -- Kelly had open heart surgery, you know, two months ago, you know, health wise and I'm sure something like that can be devastating.

TUCHMAN: In this poverty-stricken part of Mississippi, the 43- year-old Hamill had sold this dairy farm but still found himself in financial trouble. He took the job in Iraq with a division of Halliburton because it paid good money.

SCOTT BOYD, REPORTER, "THE MACON BEACON": It was a chance to go and earn wages much higher than probably what he could have made staying and working here even though there were a lot of sacrifices that came along with the job.

TUCHMAN: And now a community puts up yellow ribbons and American flags and a loving family sits and waits praying that Thomas Hamill hasn't paid the ultimate sacrifice.

UNIDENTIFIED MALE: Do you want to give us your name?

HAMILL: Hamill, Thomas.

TUCHMAN (on camera): Thomas Hamill's family members have asked the people of Macon to limit their public comments about the situation, their fear that publicity could make things worse for him.

Gary Tuchman CNN, Macon, Mississippi.

(END VIDEOTAPE)

COSTELLO: Military sources tell CNN the Army will likely grant a request to reassign two Wisconsin sisters serving in Iraq after a third sister was killed. But the military says the soldiers, and not the family, must make that request. Twenty-year-old Private Michelle Witmer was killed in an ambush in Baghdad last week. Her funeral was Wednesday, or is this coming Wednesday, tomorrow. Earlier, her family had appealed to the Army to reassign their surviving daughters.

There is more to come on DAYBREAK.

Just ahead, Vice President Dick Cheney is right in the thick of the Iraq hostage situation. He's been with the Japanese. Now it's on to China. We'll have a live report for you next.

Are more U.S. troops needed in Iraq? If so, how many and will the Pentagon approve?

And you know the signs -- runny nose, watery eyes -- it's allergy season. Later, three steps to stay allergy free this spring.

Plus, beauty and brains reign on the stage in Los Angeles. Later, who is waking up as the new Miss. USA?

This is DAYBREAK for Tuesday, April 13.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 5:16 Eastern.

Here's what's all new this morning.

A representative of radical Shiite cleric Muqtada al-Sadr is in coalition custody this morning. U.S. troops detained the aide while he attended a meeting of tribal leaders in a Baghdad hotel.

It'll be a tough day for law enforcement at the 9/11 Commission hearings. Today, Attorney General John Ashcroft and former Attorney General Janet Reno are among those testifying -- or those scheduled to appear.

In money news, many of the nation's top companies are set to reveal their first quarter earnings this week. Analysts believe the numbers will point towards a robust economy.

And in sports, Barry Bonds finally belted home run number 660. The blast into McCovey's Cove ties him with his godfather Willie Mays for the third most career home runs. Mays gave Bonds a torch they both carried before the last Olympics.

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 a million bucks per episode -- Chad.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Now onto the fight for Iraq.

New hostages to tell you about. Employees of a Russian energy company are the latest to be taken captive in Iraq.

Let's head live to Moscow to find out the reaction there.

Ryan Chilcote is there for us -- good morning, Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Good morning, Carol.

Well, eight employees of a Russian, as you said, power company that is repairing power stations in the Baghdad area, eight employees remain hostage in Baghdad right now. It happened last night, yesterday evening. A group of masked gunmen, according to this company's executive director, a man by the name of Alexander Rybinsky, pulled up to the building where these men were resting after they'd just finished up their shift at a power plant in that area and took nine of them hostage.

Apparently this company did have a security guard there for protection who was armed, but he was simply not able to do anything because he was overpowered by such a large number of these masked gunmen.

They loaded the hostages into a car and drove them off in an unknown direction, later releasing one of them. The Ukrainian foreign ministry is saying that five of those eight employees are actually Ukrainian citizens. The other three are so far presumed to be Russian nationals.

So far, the company, IES, as it is known by its abbreviation, is saying that the hostage takers haven't made any demands. They are anxious to hear for what these hostage takers would like -- Carol.

COSTELLO: Ryan Chilcote live from Moscow this morning.

Vice President Dick Cheney has just arrived in China. It is the second stop on his tour of Asia and it comes amidst rising tensions over the surge of violence in Iraq.

Our CNN Beijing bureau chief, Jaime Florcruz, joins us live now with more.

And the Chinese must be very relieved that the Chinese hostages have been released.

JAMIE FLORCRUZ, CNN CORRESPONDENT: Indeed, Carol.

Cheney arrived just an hour or so ago, spared, apparently, of another thorny and embarrassing hostage crisis now that seven Chinese nationals who were abducted a day earlier have been released.

Now, Cheney and his Chinese hosts may focus on the original agenda, and that includes Taiwan and North Korea. Cheney's hosts are expected to press him for the U.S. to abide by the so-called one China policy. And that means opposing Taiwan independence.

Cheney, at the same time, Cheney is expected to praise the Chinese for their active role in trying to seek for a breakthrough over the Korean nuclear crisis. Cheney is expected to prod the Chinese to do more so that there could be a breakthrough and that North Korea could be persuaded to abandon its nuclear weapons ambition -- Carol.

COSTELLO: Jaime, on the subject of North Korea, the "New York Times" has a report in it saying that Vice President Cheney has been briefed that there is clear evidence now that North Korea does have nuclear weapons.

FLORCRUZ: If so, if such reports were true, then Cheney's hand would be strengthened, as Cheney can now argue -- convince the Chinese that it's very urgent now to find a solution to the Korean nuclear crisis and that the Chinese can no longer just deny that the Koreans are still far away from achieving such a nuclear capability. Cheney can now press the Chinese to do more than just holding or hosting this -- the two rounds of talks and perhaps even tell the Chinese that measures like sanctions are now justifiable now that such reports are claiming or saying that the North Koreans, indeed, have nuclear weapons -- Carol.

COSTELLO: Jaime Florcruz reporting live from Beijing, China this morning.

Time now to check the overseas markets to see what may be in store for Wall Street investors.

For that, we head live to London and Diana Muriel -- good morning, Diana.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol.

Well, the European markets have started this rather short trading week in a very buoyant mood. Of course, the markets have opened for the first time since the four day Easter holiday, taking their cue, really, from the United States, which was up in trading yesterday and, indeed, from Tokyo, where the Nikkei ended at a 32-month high.

So we see Germany up just under 1 1/2 percent, leading a generally positive European market.

Let's have a look at the currencies. We've seen the dollar strengthening against the euro. It hit a four month high against the euro in earlier trading. Not so strong against the yen, though. The yen buoyed, of course, by that strong performance in the stock market and the decision by the Singapore monetary authority to tighten rates there, which generally boosted the Asian currencies.

Against the pound, though, the greenback is also strengthening slightly.

Oil very much in focus on both sides of the Atlantic. We've seen Brent crude for May delivery at up $0.26. You can see how it's performed over the course of the last 12 months. This is of great concern. Gasoline prices at 20-year highs and, indeed, American consumers paying some of the highest prices at the pumps in recent weeks.

Phillips, which is the big consumer electronics company in Holland, that reported first quarter results, very solid performance there, but it's being sold off in the market -- Carol.

COSTELLO: Diana Muriel reporting live from London.

Many thanks to you.

Pollen can make spring unbearable for many of us. Still to come on DAYBREAK, how to steer clear of the things that agitate allergies.

And what happened at a well known Las Vegas hotel that forced patrons to take their gambling dollars elsewhere?

MYERS: Oh, no.

COSTELLO: Oh.

(COMMERCIAL BREAK)

COSTELLO: Take a look. That is Shandi Finnessey. She becomes the first Miss. Missouri to ever win the Miss. USA crown.

She is pretty -- Chad.

MYERS: I'm staying out of this one.

COSTELLO: She's 25 years old. She's a graduate student and she has published a children's book already.

MYERS: Yes.

COSTELLO: And she was crowned, of course, Miss. USA at the 52nd annual pageant on Monday. She says she is a Republican and she told Reuters she would use her position to help explain America's involvement in Iraq. "What needed to be done had to be done," she said.

MYERS: I like this.

COSTELLO: And she wants a career in television.

MYERS: The winner's prize package -- a $200,000 crown; free accommodations in New York City; free dental work; and dermatological services.

COSTELLO: Free dental work? She has perfect teeth already. And can she sell the crown and get the 200,000 bucks?

MYERS: Well, I would hope not. Now, she goes on to be Miss. -- or can be Miss. Universe.

COSTELLO: Right.

MYERS: Miss. America and Miss. USA are completely different pageants, right?

COSTELLO: Exactly, Chad. Exactly right.

MYERS: Right. See, I'm getting this now.

COSTELLO: And, by the way, first runner up was Miss. South Carolina, Amanda Helen Pennekamp. And the second runner up was Miss....

MYERS: I thought you were going to say a man, a man was runner up. No.

COSTELLO: No. That would be interesting, though, wouldn't it?

The second runner up, Miss. North Carolina, Ashley Rachel Puelo.

MYERS: Congrats, yes.

COSTELLO: Mayor Bloomberg, you know...

MYERS: Yes.

COSTELLO: All smoking is banned from New York bars.

MYERS: Yes.

COSTELLO: Well, one company is fighting back. The Rheingold Beer Company is taking aim right at Mayor Bloomberg and they're putting commercials on television which combat New York's anti-smoking law.

MYERS: Interesting. Rheingold Beer.

COSTELLO: Exactly. Eye-Opener. Oh, I'm sorry. We're going to the Eye-Opener now, the DAYBREAK Eye-Opener.

MYERS: I know. I'm following you, Carol.

COSTELLO: I wondered why you weren't saying anything to me.

MYERS: I'm just nodding.

COSTELLO: And I appreciate that.

Doctors say Lauren Hutton's chest pains were a false alarm. They say the 60-year-old entertainer was probably just suffering from indigestion. Hutton was airlifted to the hospital from her home in Taos, New Mexico after feeling those chest pains. But she's OK this morning.

There's an uncharacteristic dark spot on the strip in Las Vegas. The lights at the Bellagio Hotel & Casino remain out this morning following a massive power failure early Monday. Thousands of guests and visitors were sent elsewhere after the outage. Technicians hope to get the power turned back on some time today.

Tourism officials in the nation's capital say visitors are flocking back to the city at pre-9/11 levels. D.C. expects to host 20 million tourists this year, and that is on par with the numbers from the year 2000.

Here's what's all new in the next half hour.

Another round of 9/11 Commission hearings begins this morning. Law enforcement will be in the hot seat. We'll have a preview for you.

And the U.S.-led war effort in Iraq is about to get an infusion of more troops. We'll tell you what that's all about.

And why former basketball star Jayson Williams, on trial for manslaughter, may find out today if the charges against him will be dropped.

All that and much more and the next half hour of DAYBREAK.

(COMMERCIAL BREAK)

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Aired April 13, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A major development out of Baghdad this morning. U.S. troops detain a top aide to Shiite cleric Muqtada al-Sadr. He is behind the violent Shiite uprising that swept across parts of Iraq.
Good morning.

From the CNN global headquarters in Atlanta, this is DAYBREAK for Tuesday, April 13.

I'm Carol Costello.

Here are the latest headlines now.

Fighting between U.S. forces and Iraqi insurgents flares again in Fallujah. At least two Marines were killed and either others wounded in the latest attack. U.S. troops in Iraq have detained a top aide to an anti-American cleric. Muqtada al-Sadr's aide was picked up as he was attending a tribal conference in Baghdad today.

President Bush hopes to calm Americans about the rising U.S. casualties in Iraq and explain the next steps in the United States plans there. He'll hold a prime time news conference tonight at 8:30 Eastern.

Some of the biggest names in U.S. law enforcement past and present face tough questions from the 9/11 Commission today. The panel wants to know why the FBI was unable to detect the 9/11 plot.

And Israeli Prime Minister Ariel Sharon arrives in Washington today to prepare for a meeting with President Bush tomorrow. Mr. Sharon hopes to win support for an Israeli plan to withdraw from Gaza.

And suspected -- and suspended, rather -- University of Colorado football coach Gary Barnett prepares for today's appearance before investigators looking into the athletic department's sex scandal.

To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Former and current Justice Department and intelligence officials plan to offer a spirited defense of their actions leading up to the terrorist attacks. Among those testifying today before the 9/11 Commission are Louis Freeh, who was FBI director from September 1993 until June of 2001; Cofer Black, who headed the CIA's Counter- Terrorism Center between 1999 and 2002; and Attorney General John Ashcroft.

Ashcroft is expected to face criticism he was more interested in issues like illegal drugs and gun crimes than terrorism before 9/11.

But as CNN's David Ensor reports, the finger pointing will not stop at the attorney general.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The nation's top law enforcement officials and their predecessors face a lot of questions, especially for the FBI, about what it didn't do in the summer of 2001.

TIMOTHY ROEMER, 9/11 COMMISSION MEMBER: It is a crescendo type activity that is causing the CIA director to have, so to speak, his hair on fire. Why aren't we seeing a commensurate reaction out of FBI and Justice to try to meet this threat?

ENSOR: Commissioners want to know more about the 70 FBI-al Qaeda related investigations in the summer of 2001, referred to last week by National Security Advisor Condoleezza Rice and contained in the now famous August 6th presidential daily brief from the CIA. Also, why didn't law enforcement connect the dots between Zacarias Moussaoui and the flight training mentioned in the FBI's Phoenix memo? Why didn't the CIA share its information about two al Qaeda suspects in the United States?

According to Commission sources, Attorney General John Ashcroft will face criticism from then acting FBI Director Thomas Pickard. He has said Ashcroft had little interest in counter-terrorism before 9/11, a charge the attorney general's aides reject.

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.

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

ENSOR (on camera): One commissioner told CNN everyone shares some blame for failing to stop 9/11 and he believes the final report, due in July, should name names.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: By now, we all know about the presidential daily briefing of August 6, 2001. But what about the senior executive intelligence brief sent out a day later? There is criticism about omissions in the document, which went to senior government peacemakers. According to Associated Press, the second memo did not mention the 70 FBI investigations into al Qaeda activities nor the May 2001 threat of a U.S.-based attack, nor FBI concerns over surveillance of New York buildings. Bush administration officials say memos to senior executives typically do not include the sensitive information found in the president's briefings.

CNN's live coverage of today's 9/11 Commission hearing begins at 9:00 a.m. Eastern.

President Bush will use tonight's prime time news conference to talk about that pre-September 11 memo warning of al Qaeda threats and we will have that news conference for you live at 8:30 p.m. Eastern.

As the nation gears up for another round of testimony before the 9/11 Commission, tell us what you think. Send us your e-mails. The address is daybreak@cnn.com.

Accusations of racial profiling on one college campus tops our look at stories making news across America this Tuesday.

At the University of Virginia, a search for a serial rapist has turned into a debate over police procedures. At least one student has refused to take part in the investigation. He claims the police are unfairly profiling African-American men. Police have been gathering DNA samples of men who match the description of the suspect.

The grand jury hearing the Michael Jackson molestation case will take the next two days off. They have heard from more than a dozen witnesses, including Jackson's 14-year-old accuser. A grand jury indictment would put the case on a fast track to trial. If Jackson is not indicted, prosecutors will go ahead with the preliminary hearing or drop the charges.

In Kentucky, the state's senate is expected to vote today to approve a constitutional amendment banning same-sex marriages. The statehouse has already passed the measure that would put the matter on the ballot in November. The bill also calls for a ban on same-sex civil unions.

The U.S. casualty count keeps going up in Iraq. Two U.S. Marines were killed during a battle with Iraqi insurgents.

CNN Baghdad bureau chief Jane Arraf joins us live with that and other developments, like the detainment of this aide to Sheikh al-Sadr -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Yes, Carol, U.S. forces came in and detained Hazen al-Aaraji. Now he is an aide in the district of Khadimiya, the head of the Sadr Khadimiya office. Khadimiya is one of the main, the main, in fact, Shia neighborhoods in Baghdad. It's home to some of the holiest shrines in the world to Shia Muslims, and he was the head of the office that's loyal to Muqtada al-Sadr, the radical Shia leader whom the U.S. has vowed to capture or kill.

al-Aaraji was detained, according to the military, but not yet, it's not yet clear whether he has been arrested. He was taken from this hotel complex after meeting with tribal sheikhs, who later demanded his release.

Now, that obviously is going to increase tension between the U.S. forces and the Sadr people. That stand-off still going on in many places, particularly in Najaf, where U.S. troops are building up forces in the event that they have to go in militarily to grab him.

Now in Fallujah, west of Baghdad, as you mentioned, two Marines killed last night and eight others wounded in an intense firefight with insurgents. This despite a general cease-fire to allow civilians to bury their dead and get aide -- Carol.

COSTELLO: Jane, back to this aide to al-Sadr. Many people say al-Sadr is not the one calling the shots.

How powerful is this aide?

ARRAF: The Sadr organization essentially has offices any -- everywhere and aides everywhere. The fact that he was the head of the office in Khadimiya, which is next to Sadr City, would be the most important. Baghdad is fairly indicative. But, also, the fact that he has been able to go around the city freely, seemingly, without being arrested so far is also an indication.

Now, the U.S. military tells us that they have no information yet as to whether he will be held and they can't tell us yet whether there had been a warrant for his arrest. But they have declared the Sadr forces hostile to the coalition, which means essentially anyone who works with or is affiliated with Muqtada al-Sadr is liable to be arrested, a very delicate, potentially dangerous situation -- Carol.

COSTELLO: Jane Arraf live from Baghdad this morning.

Other developments in our situation report, at least 27 foreign nationals are missing or being held hostage right now in Iraq, including nine Americans. That tops the situation report. The latest kidnapping took place in Baghdad. Gunmen seized three Russian and five Ukrainian contractors from their residence.

In the meantime, seven Chinese hostages are now safe. They were freed by their kidnappers after being held for one day.

The U.S. commander in Iraq says he needs 10,000 more U.S. troops to help fight the insurgency. That means troops scheduled to come home will have to stay a while longer.

Six American civilians who work for a subsidiary of the Houston- based Halliburton Company are still missing in Iraq. They went missing after attacks on truck convoys over the weekend. Two other workers arrived home in Houston yesterday. They were attacked by Iraqi insurgents outside of Baghdad.

In the meantime, the fate of Thomas Hamil, who was kidnapped during am ambush Friday, is still unclear.

CNN's Gary Tuchman traveled to Hamil's hometown in Mississippi.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): In a city with only 2,400 people this was a large gathering.

UNIDENTIFIED MALE: You will hear and answer our prayers.

TUCHMAN: One of Macon, Mississippi's own is in peril. Thomas Hamill took a job driving trucks in Iraq. This video was taken by an Australian news crew after he was kidnapped by Iraqi insurgents.

UNIDENTIFIED MALE: What happened.

THOMAS HAMILL: They attacked our convoy. That's all I'm going to say.

UNIDENTIFIED MALE: OK.

TUCHMAN: Hamill's attackers threatened to kill him this past weekend. His wife and two children in seclusion in this home do not know if he is still alive. Macon Mayor Dorothy Hines is close friends with Hamill's wife Kelly (ph).

MAYOR DOROTHY HINES, MACON, MISSISSIPPI: He's just a good old country boy and he just, you know, just wanted to try to get a job and do something that would help his family because they've had a lot of problems with their -- Kelly had open heart surgery, you know, two months ago, you know, health wise and I'm sure something like that can be devastating.

TUCHMAN: In this poverty-stricken part of Mississippi, the 43- year-old Hamill had sold this dairy farm but still found himself in financial trouble. He took the job in Iraq with a division of Halliburton because it paid good money.

SCOTT BOYD, REPORTER, "THE MACON BEACON": It was a chance to go and earn wages much higher than probably what he could have made staying and working here even though there were a lot of sacrifices that came along with the job.

TUCHMAN: And now a community puts up yellow ribbons and American flags and a loving family sits and waits praying that Thomas Hamill hasn't paid the ultimate sacrifice.

UNIDENTIFIED MALE: Do you want to give us your name?

HAMILL: Hamill, Thomas.

TUCHMAN (on camera): Thomas Hamill's family members have asked the people of Macon to limit their public comments about the situation, their fear that publicity could make things worse for him.

Gary Tuchman CNN, Macon, Mississippi.

(END VIDEOTAPE)

COSTELLO: Military sources tell CNN the Army will likely grant a request to reassign two Wisconsin sisters serving in Iraq after a third sister was killed. But the military says the soldiers, and not the family, must make that request. Twenty-year-old Private Michelle Witmer was killed in an ambush in Baghdad last week. Her funeral was Wednesday, or is this coming Wednesday, tomorrow. Earlier, her family had appealed to the Army to reassign their surviving daughters.

There is more to come on DAYBREAK.

Just ahead, Vice President Dick Cheney is right in the thick of the Iraq hostage situation. He's been with the Japanese. Now it's on to China. We'll have a live report for you next.

Are more U.S. troops needed in Iraq? If so, how many and will the Pentagon approve?

And you know the signs -- runny nose, watery eyes -- it's allergy season. Later, three steps to stay allergy free this spring.

Plus, beauty and brains reign on the stage in Los Angeles. Later, who is waking up as the new Miss. USA?

This is DAYBREAK for Tuesday, April 13.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 5:16 Eastern.

Here's what's all new this morning.

A representative of radical Shiite cleric Muqtada al-Sadr is in coalition custody this morning. U.S. troops detained the aide while he attended a meeting of tribal leaders in a Baghdad hotel.

It'll be a tough day for law enforcement at the 9/11 Commission hearings. Today, Attorney General John Ashcroft and former Attorney General Janet Reno are among those testifying -- or those scheduled to appear.

In money news, many of the nation's top companies are set to reveal their first quarter earnings this week. Analysts believe the numbers will point towards a robust economy.

And in sports, Barry Bonds finally belted home run number 660. The blast into McCovey's Cove ties him with his godfather Willie Mays for the third most career home runs. Mays gave Bonds a torch they both carried before the last Olympics.

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 a million bucks per episode -- Chad.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Now onto the fight for Iraq.

New hostages to tell you about. Employees of a Russian energy company are the latest to be taken captive in Iraq.

Let's head live to Moscow to find out the reaction there.

Ryan Chilcote is there for us -- good morning, Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Good morning, Carol.

Well, eight employees of a Russian, as you said, power company that is repairing power stations in the Baghdad area, eight employees remain hostage in Baghdad right now. It happened last night, yesterday evening. A group of masked gunmen, according to this company's executive director, a man by the name of Alexander Rybinsky, pulled up to the building where these men were resting after they'd just finished up their shift at a power plant in that area and took nine of them hostage.

Apparently this company did have a security guard there for protection who was armed, but he was simply not able to do anything because he was overpowered by such a large number of these masked gunmen.

They loaded the hostages into a car and drove them off in an unknown direction, later releasing one of them. The Ukrainian foreign ministry is saying that five of those eight employees are actually Ukrainian citizens. The other three are so far presumed to be Russian nationals.

So far, the company, IES, as it is known by its abbreviation, is saying that the hostage takers haven't made any demands. They are anxious to hear for what these hostage takers would like -- Carol.

COSTELLO: Ryan Chilcote live from Moscow this morning.

Vice President Dick Cheney has just arrived in China. It is the second stop on his tour of Asia and it comes amidst rising tensions over the surge of violence in Iraq.

Our CNN Beijing bureau chief, Jaime Florcruz, joins us live now with more.

And the Chinese must be very relieved that the Chinese hostages have been released.

JAMIE FLORCRUZ, CNN CORRESPONDENT: Indeed, Carol.

Cheney arrived just an hour or so ago, spared, apparently, of another thorny and embarrassing hostage crisis now that seven Chinese nationals who were abducted a day earlier have been released.

Now, Cheney and his Chinese hosts may focus on the original agenda, and that includes Taiwan and North Korea. Cheney's hosts are expected to press him for the U.S. to abide by the so-called one China policy. And that means opposing Taiwan independence.

Cheney, at the same time, Cheney is expected to praise the Chinese for their active role in trying to seek for a breakthrough over the Korean nuclear crisis. Cheney is expected to prod the Chinese to do more so that there could be a breakthrough and that North Korea could be persuaded to abandon its nuclear weapons ambition -- Carol.

COSTELLO: Jaime, on the subject of North Korea, the "New York Times" has a report in it saying that Vice President Cheney has been briefed that there is clear evidence now that North Korea does have nuclear weapons.

FLORCRUZ: If so, if such reports were true, then Cheney's hand would be strengthened, as Cheney can now argue -- convince the Chinese that it's very urgent now to find a solution to the Korean nuclear crisis and that the Chinese can no longer just deny that the Koreans are still far away from achieving such a nuclear capability. Cheney can now press the Chinese to do more than just holding or hosting this -- the two rounds of talks and perhaps even tell the Chinese that measures like sanctions are now justifiable now that such reports are claiming or saying that the North Koreans, indeed, have nuclear weapons -- Carol.

COSTELLO: Jaime Florcruz reporting live from Beijing, China this morning.

Time now to check the overseas markets to see what may be in store for Wall Street investors.

For that, we head live to London and Diana Muriel -- good morning, Diana.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol.

Well, the European markets have started this rather short trading week in a very buoyant mood. Of course, the markets have opened for the first time since the four day Easter holiday, taking their cue, really, from the United States, which was up in trading yesterday and, indeed, from Tokyo, where the Nikkei ended at a 32-month high.

So we see Germany up just under 1 1/2 percent, leading a generally positive European market.

Let's have a look at the currencies. We've seen the dollar strengthening against the euro. It hit a four month high against the euro in earlier trading. Not so strong against the yen, though. The yen buoyed, of course, by that strong performance in the stock market and the decision by the Singapore monetary authority to tighten rates there, which generally boosted the Asian currencies.

Against the pound, though, the greenback is also strengthening slightly.

Oil very much in focus on both sides of the Atlantic. We've seen Brent crude for May delivery at up $0.26. You can see how it's performed over the course of the last 12 months. This is of great concern. Gasoline prices at 20-year highs and, indeed, American consumers paying some of the highest prices at the pumps in recent weeks.

Phillips, which is the big consumer electronics company in Holland, that reported first quarter results, very solid performance there, but it's being sold off in the market -- Carol.

COSTELLO: Diana Muriel reporting live from London.

Many thanks to you.

Pollen can make spring unbearable for many of us. Still to come on DAYBREAK, how to steer clear of the things that agitate allergies.

And what happened at a well known Las Vegas hotel that forced patrons to take their gambling dollars elsewhere?

MYERS: Oh, no.

COSTELLO: Oh.

(COMMERCIAL BREAK)

COSTELLO: Take a look. That is Shandi Finnessey. She becomes the first Miss. Missouri to ever win the Miss. USA crown.

She is pretty -- Chad.

MYERS: I'm staying out of this one.

COSTELLO: She's 25 years old. She's a graduate student and she has published a children's book already.

MYERS: Yes.

COSTELLO: And she was crowned, of course, Miss. USA at the 52nd annual pageant on Monday. She says she is a Republican and she told Reuters she would use her position to help explain America's involvement in Iraq. "What needed to be done had to be done," she said.

MYERS: I like this.

COSTELLO: And she wants a career in television.

MYERS: The winner's prize package -- a $200,000 crown; free accommodations in New York City; free dental work; and dermatological services.

COSTELLO: Free dental work? She has perfect teeth already. And can she sell the crown and get the 200,000 bucks?

MYERS: Well, I would hope not. Now, she goes on to be Miss. -- or can be Miss. Universe.

COSTELLO: Right.

MYERS: Miss. America and Miss. USA are completely different pageants, right?

COSTELLO: Exactly, Chad. Exactly right.

MYERS: Right. See, I'm getting this now.

COSTELLO: And, by the way, first runner up was Miss. South Carolina, Amanda Helen Pennekamp. And the second runner up was Miss....

MYERS: I thought you were going to say a man, a man was runner up. No.

COSTELLO: No. That would be interesting, though, wouldn't it?

The second runner up, Miss. North Carolina, Ashley Rachel Puelo.

MYERS: Congrats, yes.

COSTELLO: Mayor Bloomberg, you know...

MYERS: Yes.

COSTELLO: All smoking is banned from New York bars.

MYERS: Yes.

COSTELLO: Well, one company is fighting back. The Rheingold Beer Company is taking aim right at Mayor Bloomberg and they're putting commercials on television which combat New York's anti-smoking law.

MYERS: Interesting. Rheingold Beer.

COSTELLO: Exactly. Eye-Opener. Oh, I'm sorry. We're going to the Eye-Opener now, the DAYBREAK Eye-Opener.

MYERS: I know. I'm following you, Carol.

COSTELLO: I wondered why you weren't saying anything to me.

MYERS: I'm just nodding.

COSTELLO: And I appreciate that.

Doctors say Lauren Hutton's chest pains were a false alarm. They say the 60-year-old entertainer was probably just suffering from indigestion. Hutton was airlifted to the hospital from her home in Taos, New Mexico after feeling those chest pains. But she's OK this morning.

There's an uncharacteristic dark spot on the strip in Las Vegas. The lights at the Bellagio Hotel & Casino remain out this morning following a massive power failure early Monday. Thousands of guests and visitors were sent elsewhere after the outage. Technicians hope to get the power turned back on some time today.

Tourism officials in the nation's capital say visitors are flocking back to the city at pre-9/11 levels. D.C. expects to host 20 million tourists this year, and that is on par with the numbers from the year 2000.

Here's what's all new in the next half hour.

Another round of 9/11 Commission hearings begins this morning. Law enforcement will be in the hot seat. We'll have a preview for you.

And the U.S.-led war effort in Iraq is about to get an infusion of more troops. We'll tell you what that's all about.

And why former basketball star Jayson Williams, on trial for manslaughter, may find out today if the charges against him will be dropped.

All that and much more and the next half hour of DAYBREAK.

(COMMERCIAL BREAK)

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