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CNN Live At Daybreak

Audiotape Said to be Voice of Osama Bin Laden; U.S. Forces Massing Outside Shiite Holy City of Najaf

Aired April 15, 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: Ominous words this morning, but are they the words of Osama bin Laden?
Good morning to you.

From the CNN global headquarters in Atlanta, this is DAYBREAK for Thursday, April 15.

I'm Carol Costello.

Here's what's happening right now.

There is a new audiotape out this morning that might be the voice of Osama bin Laden. The speaker threatens revenge on Israel for the assassination of Hamas founder Sheikh Ahmed Yassin.

In Spain, Jose Luis Rodriguez Zapatero addresses parliament and the nation. Zapatero's socialists were upset winners in general elections last month following the terrorist train bombings.

In southern Gaza, Palestinians say bullets from an Israeli helicopter gunship have wounded 15 people. The Israelis say they fired into a group of armed men after Palestinians activated explosive devices and launched anti-tank missiles.

Tony Blair comes to the United States today to discuss the situation in Iraq. The British prime minister meets with Kofi Annan at the U.N. today. Tomorrow, he will meet with President Bush at the White House.

In Britain, five people appear in court today, accused of conspiracy and terror related charges in the bombing last year of a pub in Tel Aviv. Three people were killed, 50 wounded in that bombing.

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

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: We're going to get more on that new audiotape that has surfaced this morning, said to be the voice of Osama bin Laden. The speaker on the tape vows revenge on the United States, but offers European nations a truce.

More on this now from CNN correspondent Caroline Faraj.

She joins us live by telephone from Dubai -- tell us about this tape.

CAROLINE FARAJ, CNN CORRESPONDENT: Well, the tape, actually, that was aired on the Arabic language TV networks Al Jazeera and Al- Arabiya early today local time, it is -- it says that it is a tape that is from Osama bin Laden, although we cannot verify this or check the authenticity.

In this tape, Osama bin Laden is offering a truce or non- aggression for any European country that stops attacking Muslims. But this tape, also in this tape, he excludes the United States from any such deed.

Also, the speaker gives a three month deadline starting April 15, because he said, as of this tape has been heard, for countries to stop attacking Muslims. He mentioned Iraq, but not in the specific context of the U.S.-led war.

As well, the tape also mentioned the killing of the Hamas leader, Sheikh Ahmed Yassin, who was killed on March 22. He basically said that he would take revenge from the United States, which is a bit strange that he was not really attacking or accusing Israel.

COSTELLO: The whole thing is just...

FARAJ: And...

COSTELLO: You know, the whole thing is just strange, Caroline. You always wonder how these tapes manage to get made, in the first place, and how they get to Al Jazeera, in the second place.

FARAJ: That's very correct. And this time they're giving it for both networks, which is Al-Arabiya, which is based in Dubai, and the Qatari network, Al Jazeera. And there is a new thing in this tape is that Al-Arabiya told us that they also received another two videotapes, but not for Osama bin Laden, for somebody who is claiming that he is one of his aides, who is repeating the same message, but with two different subtitles, one in English and the other one in the German language. And this is the first time they are doing this.

Of course, we asked Al-Arabiya how they got this tape. They declined and they said "from our sources."

COSTELLO: Why in German?

FARAJ: That's, that was also my question about this. And they said maybe -- they did not clarify, of course, the sources where they got that. But the analyst I talked to, they said they would like to address the question for those who cannot speak English, as well, and they're addressing German because of their stand regarding the Iraq war.

COSTELLO: OK, just let me make sure I have this straight. Along with the audiotape came a videotape and on the videotape supposedly is an aide to Osama bin Laden and there are English subtitles and there are also German subtitles?

FARAJ: That's correct. The man appearing on the tape, he was reading the same message that was reported or claimed to be Osama bin Laden's and he was basically having the same message in Arabic. He was reading it, but with two subtitles, one in English and one in German, yes.

COSTELLO: Fascinating.

Caroline Faraj joining us by telephone from Dubai this morning.

Thank you very much.

We'll have much more information on this audiotape in the minutes and hours to come on DAYBREAK.

Here are some of the messages we've heard in the past, allegedly, from Osama bin Laden.

On January 4, Al Jazeera broadcast warnings on an audiotape said to be from the al Qaeda leader. The CIA says it is likely the voice of Osama bin Laden.

On December 20, 2003, a tape, allegedly with bin Laden's voice on it, calls the Iraq war "a new crusade against the Muslim world."

September 10, 2003, Al Jazeera broadcasts a videotape of Osama bin Laden walking in a mountainous area with other al Qaeda members.

November 12, 2002, an alleged bin Laden audiotape is released. It criticizes President Bush and Israel.

October 6, 2002, an allegedly bin Laden audiotape broadcast on Al Jazeera warns that more attacks on the United States lie ahead.

And December 13, 2001, this is the so-called smoking gun tape, 40 minutes long, found in a house in Afghanistan. Bin Laden and other men brag and joke about the 9/11 attacks.

Hold the homecomings. Thousands of U.S. troops on the front lines in Iraq will have to stay there. That tops our situation report this morning. Defense Secretary Donald Rumsfeld will announce today a plan to extend the combat tours of about 20,000 U.S. troops in Iraq. The units are being notified this week.

Iraqi militants have executed one of four Italian hostages and are threatening to kill the other three. Italian diplomats are on their way to Iraq right now to secure the release of the remaining hostages. The militants are demanding a U.S. withdrawal.

Also happening right now, Russia is evacuating its citizens from Iraq. You're looking at new pictures this morning of them heading to the airport. The move was prompted by the hostage taking and the increase in fighting in Iraq.

And U.S. forces are massing today outside the Shiite holy city of Najaf. That's where radical cleric Muqtada al-Sadr is holed up. The U.S. has vowed to capture or kill him.

Our Baghdad bureau chief Jane Arraf joins us live now with more on the situation in Najaf and the rising insurgency -- Jane, tell us more.

JANE ARRAF, CNN CORRESPONDENT: Carol, U.S. forces are obviously hoping they don't have to make good on that threat to capture or kill Muqtada al-Sadr. There are still negotiations going on and sources familiar with the talks tell us that the negotiations center on a possible resolution in which Sadr would agree to be tried by an Iraqi court, not Americans, an Iraqi court, but only after a hand over to power and only if there's no U.S.-coalition presence here.

Now, not quite sure at this point what that last point means, whether he's insisting there be no U.S. soldiers or simply that the U.S. has handed over power. But there are intense negotiations going on there, apparently with the help of Iranian diplomats, to try to break this logjam -- Carol.

COSTELLO: And that in itself is rather strange, that Iranian diplomats would be involved.

How many are there and how did this happen?

ARRAF: Iran has always played a pretty strong role in the religious clerics that are here. Many of them are either educated in Iran or Iranian born or, like Muqtada al-Sadr, has had ties to Shia clerics who have been in Iran. Now, they are here at the deputy foreign minister's level for what they call security talks. But there is believed to be some talks going on, as well, to try to break this impasse with Muqtada al-Sadr.

It's obviously in their interests to try to be involved in this. They share a border with Iraq and they have played a very strong behind-the-scenes role, in many cases, with the Shia clerics here, the leading Shia leaders -- Carol.

COSTELLO: Interesting.

One more question for you.

We said a little earlier that an Italian diplomat is heading to Iraq to negotiate the release of other hostages.

Who will they negotiate with?

ARRAF: That's a really tricky one. Essentially, they will likely be negotiating with intermediaries. It's unlikely that they will, at this point, be taken to the kidnappers themselves, although it could be a remote possibility. But in cases like this, there have been intermediaries that include religious officials, tribal sheikhs. This obviously is a huge and worrying problem, particularly with the evacuation of hundreds of Russian workers that we've seen and a steady stream of people leaving this country.

So it's in everyone's interests, every local leader's interests to try to resolve this. So essentially the intense diplomatic negotiations that will go on regarding the Italians will likely be done through Iraqi intermediaries -- Carol.

COSTELLO: You know, it's -- at face value it's disturbing that they would negotiate with intermediaries that are Sunni religious leaders. What does that mean? Does that mean these religious leaders are connected to the kidnappers or that the kidnappers are just willing to talk to them?

ARRAF: There have to be intermediaries. There almost always are. It would not be the situation that they would be negotiating directly. The people holding these people captive would never be put in that position.

They're not necessarily Sunni leaders. They're every different kind of leaders -- Sunnis, Shias. This is an Iraqi problem, this is not a Shia problem or a Sunni problem. And there are a variety of people who are trying to act as mediators in this role -- Carol.

COSTELLO: Jane Arraf live from Baghdad.

Thank you very much.

Two more Japanese citizens have been kidnapped in Iraq. If confirmed, that would bring the total of Japanese hostages to five.

Details on this late development and the reaction to it from CNN correspondent Atika Shubert.

She's live in Tokyo this morning -- Atika, tell us about this.

ATIKA SHUBERT, CNN CORRESPONDENT: Well, Carol, it's the seventh day of Japan's hostage crisis and the news clearly going from bad to worse. As you mentioned, it's been reported that two more Japanese nationals have been kidnapped in Iraq. The government still trying to confirm this report. But what we do know is that a media NGO received an e-mail early this morning detailing a description of the abduction of one freelance journalist and the other a peace activist, apparently sent by an eyewitness to the kidnapping.

Now, in addition to that, of course, the news in Japan, it was heard that an Italian hostage had been executed. That, of course, will have repercussions here, as family members still wait for those three hostages in Japan -- that are held hostage in Iraq, excuse me.

The prime minister, Junichiro Koizumi, made a statement earlier today saying that while he was saddened by the news, the country must not give in to hostage takers' demands, again reiterating that Japan will keep its troops in Iraq -- Carol.

COSTELLO: Atika Shubert live from Tokyo this morning.

We will talk about the latest tape allegedly from Osama bin Laden with French journalist Alex Jordanov.

That's coming up later this hour live on DAYBREAK. In Iraq, one Italian hostage is killed and others are threatened. We'll get to a live report, too, and we'll get reaction from Rome.

Also, Tony Blair is coming to America today. But his thoughts will be on Iraq.

And a new study discounts some of the supposed benefits of estrogen only therapy.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: It is 5:15 Eastern time.

Here's what's all new this morning.

Still yet to be confirmed is an apparent new audiotape from al Qaeda. The message says the train bombings in Madrid last month are payback for Spain's actions in Iraq, Afghanistan and what the tape refers to as Palestine.

In southern Gaza, an Israeli helicopter gunship fires into the refugee camp in Rafah, wounding 15 Palestinians. Israeli military sources tell CNN its troops shot into a group of armed men.

In money news, it's April 15 and many of you might have a late night date at the post office, unless, of course, you are filing electronically. Congratulations if you are.

In sports, caught in a kayak. Both of Barry Bonds' milestone homers are nabbed by the same guy, pushed in a kayak just outside of the stadium.

In culture, 92 years ago this day, the British liner Titanic sank after hitting an iceberg in the North Atlantic. More than 1,000 people died. It was the majestic ship's maiden voyage -- Chad.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

He stood face to face with hostile forces in Iraq and lived to tell the tale. Yes, he was taken hostage by Iraqi insurgents. We will get a firsthand account of his harrowing experience. And we'll hear details about the ominous message he brought from the insurgents. We'll show you the letter.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: 5:20 Eastern time.

Let's turn to things financial now.

There may be hints of a rebound in European stocks.

For that, let's head live to London and Mallika Kapur -- good morning, Mallika.

MALLIKA KAPUR, CNN CORRESPONDENT: You're right, we are seeing a little bit of a rebound here in the European markets. These markets have been dipping in and out of positive territory over the last couple of hours. These markets opened lower this morning. But as you can see, they have made up some of those losses and they are in positive territory at the moment, though Germany's DAX quite flat at the moment.

Now, one of the factors weighing on these markets is the fact that there is a lot of nervousness in the markets, some concern among investors that the Federal Reserve is going to be raising interest rates sooner rather than later. Many analysts were expecting the Fed to wait until next year to raise interest rates. But now they're saying that we could see a rate hike, some people saying even as early as August this year. And that is weighing on these markets.

Now, the reason for people expecting the Fed to raise interest rates earlier rather than later is because of some very positive economic data we've seen over the last couple of days. On Wednesday, we had a rise in U.S. consumer prices. On Tuesday, we saw a big jump in retail sales. And that is making people feel that the Fed is going to raise rates in just a couple of months.

And another sector that is in focus today here in Europe is the technology sector. And we are seeing some positive momentum in this sector. And that's largely because of some positive results we saw after the bell on Wall Street last night. We had positive earnings news from Apple Computer and from Texas Instruments and that is helping the markets. We've also had positive results in from Sage. That's a British software maker. And its stock is up 3 1/2 percent at the moment -- back to you, Carol.

COSTELLO: Mallika Kapur live from London this morning.

He was kidnapped by Iraqi militants and passed from one armed group to another. But French journalist Alex Jordanov is one of the lucky ones. He lived to tell of his harrowing ordeal and he's got a message from his captors.

Jordanov joins us now live from Baghdad with more of his amazing story.

Good morning.

ALEX JORDANOV, JOURNALIST/FORMER HOSTAGE: Good morning.

COSTELLO: Tell me how this happened exactly.

JORDANOV: We were actually on our way to the holy city of Karbala when we were caught in heavy fire after an American convoy was attacked. At one point I lost track of my cameraman and I was left alone on the road. People started shooting at me out of the surroundings and a car jumped out of nowhere and four men grabbed me and took me away to a location that I have no idea where it is.

COSTELLO: So they put you into a car. Did the men have their faces covered? And, of course, they are armed. And once you were in the back seat of the car, did they say anything to you?

JORDANOV: They was quoting Jihad and they blindfolded me and threw me in the back of the car with a blade under my throat and took me to a -- the first location was a madrassa. And then we kept changing locations for the next four days.

COSTELLO: And you changed locations, what, eight times?

JORDANOV: About 10 times, yes.

COSTELLO: Did they ever tell you or communicate to you in any way why they were holding you?

JORDANOV: It's very confusing in their eyes. I believe that the Iraqi people are at this point very united, at least in the provincial cities, whether it's the Muqtada al-Sadr people or the former Saddam army people or the Islamic Party people, they're all interconnected. They all know each other. They don't share the same political views, but they have one common enemy, and it's the American occupation.

COSTELLO: Did they think you were an American or did they know that you were French at first?

JORDANOV: Well, it took them a few days to figure it out, considering that we did not speak the same language. They did not speak English or neither did they speak French. So it was very difficult to communicate. They would sometimes bring a translator, check your identity and then the head of the tribe or the head of the movement would like decide whether or not to like release you and -- which actually happened. You know, they would like, they would pass you off to another group. And it went on for four days like this.

COSTELLO: Well, in between the times that they were passing you off, I mean what happened? Were you just tied up and left in a room? I mean what was it like for you?

JORDANOV: No, they'd stay with you. They'd stay with you. They'd try to like, you know, talk to you. They'd feed you well. They did not harm you or anything like that. But they would try to find out why America is here. They would try to find some information. They're pretty far removed from any source of information out there and they would try to find out things.

At this point the French passport did not help at all. I mean I thought it would, but it did not. And it was a -- you had to explain yourself. Every single time you changed hands, you had to explain yourself, what you are doing here and what you're doing there and why is the -- why is America occupying this country.

COSTELLO: And I understand that they...

JORDANOV: It's a... COSTELLO: ... they gave you a letter.

Can you tell us what the letter said and why they gave you it?

JORDANOV: The last people, who actually released me, were people who I had an OK rapport with, an OK human rapport, which I think, personally, changed the course of this whole ordeal. They gave me a letter stating that it is the United Front of Mujahedeen that decided to release me, which is all the factions I tried to tell you about earlier, which doesn't mean anything, really, because there's so many factions and it's so confusing at this point of who is running what.

But it's the United Front of Mujahedeen who gave me this letter to give to the imam of the great mosque in Baghdad, who was very pleased to read it to the media over here.

COSTELLO: So what did the letter say? What was the message?

JORDANOV: That was it. That was it. We -- the letter said we release Alex Jordanov in your hands and it was signed by the United Front of Mujahedeen. That was it. It was very short. It was like two lines.

COSTELLO: That's just so strange.

So, again, you're saying that all this -- these disparate groups are running around out there and they're all interconnected in some way.

So do you think that there's any organized effort at all? Because a lot of people are being kidnapped. Or is it just one group copycatting after another group?

JORDANOV: No, it's not like that. Sometimes when you -- they blindfold you and they just drive you around from one location to another. You can sometimes see where you're going or parts of the road. And they would often stop. Like at every road intersection or every village, they would know people that were not necessarily from their side. But they would all know each other and they would all like seem to be very united in the resistance of Iraq.

They, pretty much every mile that you go, they would like know people. They would know people. And we did a lot of miles. We traveled maybe -- sometimes we'd drive for like two hours. Sometimes we'd drive for three hours. Every time they would stop and say hello to their colleagues, you know, if I can -- may say so. And these colleagues were sometimes from the Saddam party, sometimes from the Muqtada al-Sadr party. But they all knew each other and they all had a common goal. It was like to, I guess, get a hostage and try to get something out of it.

COSTELLO: Alex, one last question for you.

Are you staying in Iraq to continue to cover the events there?

JORDANOV: At this point, no. I have another assignment. And I'll be returning to Paris, most likely tomorrow, if there is a flight out.

COSTELLO: All right, well, we're glad you're OK and thank you for sharing your story.

Alex Jordanov reporting -- actually, telling us his story live from Baghdad this morning.

Here's what we have for you in the next half hour of DAYBREAK.

Identifying the voice on that tape -- what the latest tape claiming to be Osama bin Laden says to the world.

In Iraq, an Italian hostage is killed, but Italian officials refuse to give in to demands to withdraw their troops.

And the British military presence in Iraq will also be a hot button issue as Tony Blair pays a visit to the United States.

(COMMERCIAL BREAK)

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Aired April 15, 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: Ominous words this morning, but are they the words of Osama bin Laden?
Good morning to you.

From the CNN global headquarters in Atlanta, this is DAYBREAK for Thursday, April 15.

I'm Carol Costello.

Here's what's happening right now.

There is a new audiotape out this morning that might be the voice of Osama bin Laden. The speaker threatens revenge on Israel for the assassination of Hamas founder Sheikh Ahmed Yassin.

In Spain, Jose Luis Rodriguez Zapatero addresses parliament and the nation. Zapatero's socialists were upset winners in general elections last month following the terrorist train bombings.

In southern Gaza, Palestinians say bullets from an Israeli helicopter gunship have wounded 15 people. The Israelis say they fired into a group of armed men after Palestinians activated explosive devices and launched anti-tank missiles.

Tony Blair comes to the United States today to discuss the situation in Iraq. The British prime minister meets with Kofi Annan at the U.N. today. Tomorrow, he will meet with President Bush at the White House.

In Britain, five people appear in court today, accused of conspiracy and terror related charges in the bombing last year of a pub in Tel Aviv. Three people were killed, 50 wounded in that bombing.

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

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: We're going to get more on that new audiotape that has surfaced this morning, said to be the voice of Osama bin Laden. The speaker on the tape vows revenge on the United States, but offers European nations a truce.

More on this now from CNN correspondent Caroline Faraj.

She joins us live by telephone from Dubai -- tell us about this tape.

CAROLINE FARAJ, CNN CORRESPONDENT: Well, the tape, actually, that was aired on the Arabic language TV networks Al Jazeera and Al- Arabiya early today local time, it is -- it says that it is a tape that is from Osama bin Laden, although we cannot verify this or check the authenticity.

In this tape, Osama bin Laden is offering a truce or non- aggression for any European country that stops attacking Muslims. But this tape, also in this tape, he excludes the United States from any such deed.

Also, the speaker gives a three month deadline starting April 15, because he said, as of this tape has been heard, for countries to stop attacking Muslims. He mentioned Iraq, but not in the specific context of the U.S.-led war.

As well, the tape also mentioned the killing of the Hamas leader, Sheikh Ahmed Yassin, who was killed on March 22. He basically said that he would take revenge from the United States, which is a bit strange that he was not really attacking or accusing Israel.

COSTELLO: The whole thing is just...

FARAJ: And...

COSTELLO: You know, the whole thing is just strange, Caroline. You always wonder how these tapes manage to get made, in the first place, and how they get to Al Jazeera, in the second place.

FARAJ: That's very correct. And this time they're giving it for both networks, which is Al-Arabiya, which is based in Dubai, and the Qatari network, Al Jazeera. And there is a new thing in this tape is that Al-Arabiya told us that they also received another two videotapes, but not for Osama bin Laden, for somebody who is claiming that he is one of his aides, who is repeating the same message, but with two different subtitles, one in English and the other one in the German language. And this is the first time they are doing this.

Of course, we asked Al-Arabiya how they got this tape. They declined and they said "from our sources."

COSTELLO: Why in German?

FARAJ: That's, that was also my question about this. And they said maybe -- they did not clarify, of course, the sources where they got that. But the analyst I talked to, they said they would like to address the question for those who cannot speak English, as well, and they're addressing German because of their stand regarding the Iraq war.

COSTELLO: OK, just let me make sure I have this straight. Along with the audiotape came a videotape and on the videotape supposedly is an aide to Osama bin Laden and there are English subtitles and there are also German subtitles?

FARAJ: That's correct. The man appearing on the tape, he was reading the same message that was reported or claimed to be Osama bin Laden's and he was basically having the same message in Arabic. He was reading it, but with two subtitles, one in English and one in German, yes.

COSTELLO: Fascinating.

Caroline Faraj joining us by telephone from Dubai this morning.

Thank you very much.

We'll have much more information on this audiotape in the minutes and hours to come on DAYBREAK.

Here are some of the messages we've heard in the past, allegedly, from Osama bin Laden.

On January 4, Al Jazeera broadcast warnings on an audiotape said to be from the al Qaeda leader. The CIA says it is likely the voice of Osama bin Laden.

On December 20, 2003, a tape, allegedly with bin Laden's voice on it, calls the Iraq war "a new crusade against the Muslim world."

September 10, 2003, Al Jazeera broadcasts a videotape of Osama bin Laden walking in a mountainous area with other al Qaeda members.

November 12, 2002, an alleged bin Laden audiotape is released. It criticizes President Bush and Israel.

October 6, 2002, an allegedly bin Laden audiotape broadcast on Al Jazeera warns that more attacks on the United States lie ahead.

And December 13, 2001, this is the so-called smoking gun tape, 40 minutes long, found in a house in Afghanistan. Bin Laden and other men brag and joke about the 9/11 attacks.

Hold the homecomings. Thousands of U.S. troops on the front lines in Iraq will have to stay there. That tops our situation report this morning. Defense Secretary Donald Rumsfeld will announce today a plan to extend the combat tours of about 20,000 U.S. troops in Iraq. The units are being notified this week.

Iraqi militants have executed one of four Italian hostages and are threatening to kill the other three. Italian diplomats are on their way to Iraq right now to secure the release of the remaining hostages. The militants are demanding a U.S. withdrawal.

Also happening right now, Russia is evacuating its citizens from Iraq. You're looking at new pictures this morning of them heading to the airport. The move was prompted by the hostage taking and the increase in fighting in Iraq.

And U.S. forces are massing today outside the Shiite holy city of Najaf. That's where radical cleric Muqtada al-Sadr is holed up. The U.S. has vowed to capture or kill him.

Our Baghdad bureau chief Jane Arraf joins us live now with more on the situation in Najaf and the rising insurgency -- Jane, tell us more.

JANE ARRAF, CNN CORRESPONDENT: Carol, U.S. forces are obviously hoping they don't have to make good on that threat to capture or kill Muqtada al-Sadr. There are still negotiations going on and sources familiar with the talks tell us that the negotiations center on a possible resolution in which Sadr would agree to be tried by an Iraqi court, not Americans, an Iraqi court, but only after a hand over to power and only if there's no U.S.-coalition presence here.

Now, not quite sure at this point what that last point means, whether he's insisting there be no U.S. soldiers or simply that the U.S. has handed over power. But there are intense negotiations going on there, apparently with the help of Iranian diplomats, to try to break this logjam -- Carol.

COSTELLO: And that in itself is rather strange, that Iranian diplomats would be involved.

How many are there and how did this happen?

ARRAF: Iran has always played a pretty strong role in the religious clerics that are here. Many of them are either educated in Iran or Iranian born or, like Muqtada al-Sadr, has had ties to Shia clerics who have been in Iran. Now, they are here at the deputy foreign minister's level for what they call security talks. But there is believed to be some talks going on, as well, to try to break this impasse with Muqtada al-Sadr.

It's obviously in their interests to try to be involved in this. They share a border with Iraq and they have played a very strong behind-the-scenes role, in many cases, with the Shia clerics here, the leading Shia leaders -- Carol.

COSTELLO: Interesting.

One more question for you.

We said a little earlier that an Italian diplomat is heading to Iraq to negotiate the release of other hostages.

Who will they negotiate with?

ARRAF: That's a really tricky one. Essentially, they will likely be negotiating with intermediaries. It's unlikely that they will, at this point, be taken to the kidnappers themselves, although it could be a remote possibility. But in cases like this, there have been intermediaries that include religious officials, tribal sheikhs. This obviously is a huge and worrying problem, particularly with the evacuation of hundreds of Russian workers that we've seen and a steady stream of people leaving this country.

So it's in everyone's interests, every local leader's interests to try to resolve this. So essentially the intense diplomatic negotiations that will go on regarding the Italians will likely be done through Iraqi intermediaries -- Carol.

COSTELLO: You know, it's -- at face value it's disturbing that they would negotiate with intermediaries that are Sunni religious leaders. What does that mean? Does that mean these religious leaders are connected to the kidnappers or that the kidnappers are just willing to talk to them?

ARRAF: There have to be intermediaries. There almost always are. It would not be the situation that they would be negotiating directly. The people holding these people captive would never be put in that position.

They're not necessarily Sunni leaders. They're every different kind of leaders -- Sunnis, Shias. This is an Iraqi problem, this is not a Shia problem or a Sunni problem. And there are a variety of people who are trying to act as mediators in this role -- Carol.

COSTELLO: Jane Arraf live from Baghdad.

Thank you very much.

Two more Japanese citizens have been kidnapped in Iraq. If confirmed, that would bring the total of Japanese hostages to five.

Details on this late development and the reaction to it from CNN correspondent Atika Shubert.

She's live in Tokyo this morning -- Atika, tell us about this.

ATIKA SHUBERT, CNN CORRESPONDENT: Well, Carol, it's the seventh day of Japan's hostage crisis and the news clearly going from bad to worse. As you mentioned, it's been reported that two more Japanese nationals have been kidnapped in Iraq. The government still trying to confirm this report. But what we do know is that a media NGO received an e-mail early this morning detailing a description of the abduction of one freelance journalist and the other a peace activist, apparently sent by an eyewitness to the kidnapping.

Now, in addition to that, of course, the news in Japan, it was heard that an Italian hostage had been executed. That, of course, will have repercussions here, as family members still wait for those three hostages in Japan -- that are held hostage in Iraq, excuse me.

The prime minister, Junichiro Koizumi, made a statement earlier today saying that while he was saddened by the news, the country must not give in to hostage takers' demands, again reiterating that Japan will keep its troops in Iraq -- Carol.

COSTELLO: Atika Shubert live from Tokyo this morning.

We will talk about the latest tape allegedly from Osama bin Laden with French journalist Alex Jordanov.

That's coming up later this hour live on DAYBREAK. In Iraq, one Italian hostage is killed and others are threatened. We'll get to a live report, too, and we'll get reaction from Rome.

Also, Tony Blair is coming to America today. But his thoughts will be on Iraq.

And a new study discounts some of the supposed benefits of estrogen only therapy.

We'll be right back.

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COSTELLO: It is 5:15 Eastern time.

Here's what's all new this morning.

Still yet to be confirmed is an apparent new audiotape from al Qaeda. The message says the train bombings in Madrid last month are payback for Spain's actions in Iraq, Afghanistan and what the tape refers to as Palestine.

In southern Gaza, an Israeli helicopter gunship fires into the refugee camp in Rafah, wounding 15 Palestinians. Israeli military sources tell CNN its troops shot into a group of armed men.

In money news, it's April 15 and many of you might have a late night date at the post office, unless, of course, you are filing electronically. Congratulations if you are.

In sports, caught in a kayak. Both of Barry Bonds' milestone homers are nabbed by the same guy, pushed in a kayak just outside of the stadium.

In culture, 92 years ago this day, the British liner Titanic sank after hitting an iceberg in the North Atlantic. More than 1,000 people died. It was the majestic ship's maiden voyage -- Chad.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

He stood face to face with hostile forces in Iraq and lived to tell the tale. Yes, he was taken hostage by Iraqi insurgents. We will get a firsthand account of his harrowing experience. And we'll hear details about the ominous message he brought from the insurgents. We'll show you the letter.

This is DAYBREAK for Thursday.

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COSTELLO: 5:20 Eastern time.

Let's turn to things financial now.

There may be hints of a rebound in European stocks.

For that, let's head live to London and Mallika Kapur -- good morning, Mallika.

MALLIKA KAPUR, CNN CORRESPONDENT: You're right, we are seeing a little bit of a rebound here in the European markets. These markets have been dipping in and out of positive territory over the last couple of hours. These markets opened lower this morning. But as you can see, they have made up some of those losses and they are in positive territory at the moment, though Germany's DAX quite flat at the moment.

Now, one of the factors weighing on these markets is the fact that there is a lot of nervousness in the markets, some concern among investors that the Federal Reserve is going to be raising interest rates sooner rather than later. Many analysts were expecting the Fed to wait until next year to raise interest rates. But now they're saying that we could see a rate hike, some people saying even as early as August this year. And that is weighing on these markets.

Now, the reason for people expecting the Fed to raise interest rates earlier rather than later is because of some very positive economic data we've seen over the last couple of days. On Wednesday, we had a rise in U.S. consumer prices. On Tuesday, we saw a big jump in retail sales. And that is making people feel that the Fed is going to raise rates in just a couple of months.

And another sector that is in focus today here in Europe is the technology sector. And we are seeing some positive momentum in this sector. And that's largely because of some positive results we saw after the bell on Wall Street last night. We had positive earnings news from Apple Computer and from Texas Instruments and that is helping the markets. We've also had positive results in from Sage. That's a British software maker. And its stock is up 3 1/2 percent at the moment -- back to you, Carol.

COSTELLO: Mallika Kapur live from London this morning.

He was kidnapped by Iraqi militants and passed from one armed group to another. But French journalist Alex Jordanov is one of the lucky ones. He lived to tell of his harrowing ordeal and he's got a message from his captors.

Jordanov joins us now live from Baghdad with more of his amazing story.

Good morning.

ALEX JORDANOV, JOURNALIST/FORMER HOSTAGE: Good morning.

COSTELLO: Tell me how this happened exactly.

JORDANOV: We were actually on our way to the holy city of Karbala when we were caught in heavy fire after an American convoy was attacked. At one point I lost track of my cameraman and I was left alone on the road. People started shooting at me out of the surroundings and a car jumped out of nowhere and four men grabbed me and took me away to a location that I have no idea where it is.

COSTELLO: So they put you into a car. Did the men have their faces covered? And, of course, they are armed. And once you were in the back seat of the car, did they say anything to you?

JORDANOV: They was quoting Jihad and they blindfolded me and threw me in the back of the car with a blade under my throat and took me to a -- the first location was a madrassa. And then we kept changing locations for the next four days.

COSTELLO: And you changed locations, what, eight times?

JORDANOV: About 10 times, yes.

COSTELLO: Did they ever tell you or communicate to you in any way why they were holding you?

JORDANOV: It's very confusing in their eyes. I believe that the Iraqi people are at this point very united, at least in the provincial cities, whether it's the Muqtada al-Sadr people or the former Saddam army people or the Islamic Party people, they're all interconnected. They all know each other. They don't share the same political views, but they have one common enemy, and it's the American occupation.

COSTELLO: Did they think you were an American or did they know that you were French at first?

JORDANOV: Well, it took them a few days to figure it out, considering that we did not speak the same language. They did not speak English or neither did they speak French. So it was very difficult to communicate. They would sometimes bring a translator, check your identity and then the head of the tribe or the head of the movement would like decide whether or not to like release you and -- which actually happened. You know, they would like, they would pass you off to another group. And it went on for four days like this.

COSTELLO: Well, in between the times that they were passing you off, I mean what happened? Were you just tied up and left in a room? I mean what was it like for you?

JORDANOV: No, they'd stay with you. They'd stay with you. They'd try to like, you know, talk to you. They'd feed you well. They did not harm you or anything like that. But they would try to find out why America is here. They would try to find some information. They're pretty far removed from any source of information out there and they would try to find out things.

At this point the French passport did not help at all. I mean I thought it would, but it did not. And it was a -- you had to explain yourself. Every single time you changed hands, you had to explain yourself, what you are doing here and what you're doing there and why is the -- why is America occupying this country.

COSTELLO: And I understand that they...

JORDANOV: It's a... COSTELLO: ... they gave you a letter.

Can you tell us what the letter said and why they gave you it?

JORDANOV: The last people, who actually released me, were people who I had an OK rapport with, an OK human rapport, which I think, personally, changed the course of this whole ordeal. They gave me a letter stating that it is the United Front of Mujahedeen that decided to release me, which is all the factions I tried to tell you about earlier, which doesn't mean anything, really, because there's so many factions and it's so confusing at this point of who is running what.

But it's the United Front of Mujahedeen who gave me this letter to give to the imam of the great mosque in Baghdad, who was very pleased to read it to the media over here.

COSTELLO: So what did the letter say? What was the message?

JORDANOV: That was it. That was it. We -- the letter said we release Alex Jordanov in your hands and it was signed by the United Front of Mujahedeen. That was it. It was very short. It was like two lines.

COSTELLO: That's just so strange.

So, again, you're saying that all this -- these disparate groups are running around out there and they're all interconnected in some way.

So do you think that there's any organized effort at all? Because a lot of people are being kidnapped. Or is it just one group copycatting after another group?

JORDANOV: No, it's not like that. Sometimes when you -- they blindfold you and they just drive you around from one location to another. You can sometimes see where you're going or parts of the road. And they would often stop. Like at every road intersection or every village, they would know people that were not necessarily from their side. But they would all know each other and they would all like seem to be very united in the resistance of Iraq.

They, pretty much every mile that you go, they would like know people. They would know people. And we did a lot of miles. We traveled maybe -- sometimes we'd drive for like two hours. Sometimes we'd drive for three hours. Every time they would stop and say hello to their colleagues, you know, if I can -- may say so. And these colleagues were sometimes from the Saddam party, sometimes from the Muqtada al-Sadr party. But they all knew each other and they all had a common goal. It was like to, I guess, get a hostage and try to get something out of it.

COSTELLO: Alex, one last question for you.

Are you staying in Iraq to continue to cover the events there?

JORDANOV: At this point, no. I have another assignment. And I'll be returning to Paris, most likely tomorrow, if there is a flight out.

COSTELLO: All right, well, we're glad you're OK and thank you for sharing your story.

Alex Jordanov reporting -- actually, telling us his story live from Baghdad this morning.

Here's what we have for you in the next half hour of DAYBREAK.

Identifying the voice on that tape -- what the latest tape claiming to be Osama bin Laden says to the world.

In Iraq, an Italian hostage is killed, but Italian officials refuse to give in to demands to withdraw their troops.

And the British military presence in Iraq will also be a hot button issue as Tony Blair pays a visit to the United States.

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