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CNN Live At Daybreak

A New Audiotape with a Very Anti-American Message

Aired April 15, 2004 - 06:00   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 new audiotape with a very anti- American message. But is it really the voice of al Qaeda's infamous leader, Osama bin Laden?
This is DAYBREAK for Thursday, April 15.

And good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Here are the latest headlines for you now.

There is a new audiotape out this morning that, well, it just might have the voice of Osama bin Laden on it. The speaker threatens revenge on the United States 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.

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 and 50 wounded in that bombing.

And 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.

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

(WEATHER REPORT)

COSTELLO: Let's talk more about that new audiotape attributed to Osama bin Laden. It's just out today. But how the tape's message is received in the Middle East may be as important as who the messenger is.

Our senior international editor David Clinch joins me on the set with some analysis of this tape. First of all, this tape was delivered to the both Arab television networks?

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Right. To, first of all, the Arab television network Al-Arabiya and then later to Al Jazeera. And, of course we begin with our mandatory disclaimer. We do not know that this is Osama bin Laden. We never know for sure when these audiotapes play whether, in fact, it is him. We can only say that our experts, who have listened to many, many tapes of him, say that it sounds like him, it sounds like tapes that have been said by the CIA and others to be him before.

COSTELLO: Is this message different from the others?

CLINCH: Well, what's always interesting to us -- it is different. And what's always interesting to us is, first of all, we look for references that date it. And there are two references that date this tape. Again, we're not saying for sure that it is Osama, but the two dated references that are most interesting are, first of all, the attack on Sheikh Yassin by Israel, the assassination of the Hamas leader Sheikh Yassin.

Interestingly, on the editorial side, Osama bin Laden promising revenge on the United States for that attack. And, of course, it's always interesting to us when we view this is that we can draw distinctions in our coverage between what happens in Iraq, what happens in Israel, what happens everywhere else. But from the terrorists' point of view, and, again, not saying this is Osama, but from the al Qaeda point of view, those distinctions don't exist.

What happens by Israel happens by the United States. And that's made clear in this tape.

The other dated reference is to the Madrid, both to the September 11 attacks in the U.S., but also to the Madrid attacks in March.

COSTELLO: In March.

CLINCH: So that makes the tape recorded within the last month or so. So that's interesting.

COSTELLO: And, also, it vows revenge on the United States, but it wants a truce with European nations...

CLINCH: Right.

COSTELLO: ... if?

CLINCH: The voice purporting to be Osama promises a truce for European nations who stop attacking Muslims and says that those European nations have three months from now, from the date of the airing of this tape, to take action that shows that they will no longer attack Muslims.

Now, what that means, of course, we don't really know. We talked about this earlier. We try not to pretend that we get inside the mind of the terrorists as they say statements, but, of course, the timing of these things is always interesting. Both on the Israel side, we had Prime Minister Sharon and President Bush last night with their controversial statements on a Gaza withdrawal plan. And then, of course, the timing in Spain and in Europe, the new Spanish prime minister being sworn in today. He's already promised to pull troops out of Iraq.

It's a very interesting timing and that's really what matters, the timing for the audience in Europe and, of course, for the audience in the Middle East, where the United States and Europe are very vulnerable to the image of being aggressive in the Middle East right now with what's going on in Iraq.

COSTELLO: And we're going to talk with a terrorism expert in the next half hour of DAYBREAK.

CLINCH: OK.

COSTELLO: Thank you very much, David Clinch.

CLINCH: All right.

COSTELLO: 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 now on their way to Iraq to try to secure the release of the remaining hostages. The militants are demanding that Italian troops leave Iraq.

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.

And we also have new pictures to show you out of Falluja this morning. These pictures are of Iraqi insurgents with their faces covered. They are heavily armed. You're going to see those pictures in just a second.

But let's head live to Baghdad now and Jane Arraf -- Jane, you have been in Iraq for a long time.

When the Iraqi people hear of grizzly killings by Iraqi kidnappers, are they outraged?

JANE ARRAF, CNN CORRESPONDENT: Many of them are, Carol. I mean these are people who obviously say that civilians should not be subjected to this sort of thing. Even people who believe that U.S. troops shouldn't be here certainly draw a difference between U.S. soldiers, or any soldiers, for that matter, and civilians.

Now, these Italians were security guards. There are a variety of different people, as you know, who have been kidnapped. Some of them are civilian contractors.

There's quite a bit of a resentment against contractors, whom Iraqis believe are taking jobs that they could be doing at unimaginable salaries. But that generally doesn't translate into any desire to see them harmed or any happiness when things like this happen -- Carol.

COSTELLO: And I was specifically referring to the videotape that Al Jazeera received of that Italian hostage being killed in such a grizzly way that even Al Jazeera not showing the pictures to its audience.

Let's move on to Najaf right now as we take a look at more of those pictures of insurgents in Falluja. And they're holding weaponry. They have rocket propelled grenades. You can see them there. We'll show those pictures again.

But let's talk about Najaf, because U.S. troops are gathered outside of that city this morning.

ARRAF: They are gathered outside that city to make good their threat, if they have to, to capture or kill Muqtada al-Sadr. Now, they're obviously hoping it won't come to that. And there are indications, that, indeed, it won't. Negotiations going on between senior religious leaders, possibly with the involvement of Iran, to try to get a peaceful resolution to this.

There are very few things people are afraid of more than U.S. forces in Najaf and the effect that would have. It's a holy city for Shias all over the world. But the negotiations are going on and there are indications that Muqtada al-Sadr may agree to be tried by Iraqis after the U.S. hands over power. There is an arrest warrant, of course, issued for him.

He won't be handed over to the U.S., he says, and he is demanding that those troops withdraw -- Carol.

COSTELLO: Jane Arraf live in Baghdad.

And, of course, those pictures that we just saw were of U.S. Marines around the city of Najaf.

Jane Arraf live from Baghdad this morning.

It is over, at least until May. That's when the 9/11 Commission will next hold hearings. But it will be busy in the meantime, sorting through a lot of information, hopefully leading to why the attacks of 9/11 were not foiled.

Let's head live to D.C. and Bill Prasad -- good morning, Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.

The U.S. is still very vulnerable, that's what the leaders of the 9/11 Commission say after two days of hearings this week in Washington, D.C.

The focus was on the CIA and the FBI.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): George Tenet, CIA director...

GEORGE TENET, CIA DIRECTOR: We made mistakes.

PRASAD: He blamed intelligence failures on, among other things, cutbacks in manpower and resources.

TENET: But we've made an enormous amount of progress.

PRASAD: Improvements since September 11. But then Tenet said something no one really wanted to hear.

TENET: It will take us another five years to have the kind of clandestine service our country needs.

PRASAD: Against that backdrop, a new audiotape, supposedly from Osama bin Laden. The voice on the tape again threatening the U.S. The Commission puts pressure on the intelligence agencies to stop bin Laden.

TOM KEAN, 9/11 COMMISSION CHAIRMAN: These agencies are the most important agencies in the war on terror, I think, more important than the Army, more important than anything else.

PRASAD: The Commission is considering giving new muscle to Tenet's successor, including hiring and budget power over the other intelligence agencies. Also among consideration, the creation of a new domestic intelligence agency, taking the job away from the FBI, something that agency opposes.

ROBERT MUELLER, FBI DIRECTOR: I do believe that creating a separate agency to collect intelligence in the United States would be a grave mistake.

PRASAD: But the Commission vows to choose a new path.

UNIDENTIFIED MALE: There is a train coming down the track. There are going to be very real changes made.

(END VIDEOTAPE)

PRASAD: The Commission did applaud some of the reforms adopted by the various agencies, but they say it's not enough, especially when the safety of the United States is on the line -- Carol.

COSTELLO: Bill Prasad live from Washington, D.C. this morning.

For more on the September 11 hearings, be sure to stick around for "American Morning." 9/11 Commissioner Slade Gorton will be a guest. Of course, "American Morning" comes your way at 7:00 Eastern time.

Chad is walking to the set right now because normally...

CHAD MYERS, CNN CORRESPONDENT: Carol...

COSTELLO: ... we would reveal the winner of our DAYBREAK coffee quiz. But...

MYERS: But the winner didn't send in the address.

COSTELLO: Well, you don't really have to send in your address, but you have to send in your first and last name and where you're from.

MYERS: No.

COSTELLO: Is that right, executive producer Brian?

MYERS: Well, anyway, we've got a lot of...

COSTELLO: He's not answering me.

MYERS: We've got an awful lot of things that were going on yesterday, too. So we -- here are the answers to the DAYBREAK quiz. But when we ask the questions today we do need your mailing address with it, please.

COSTELLO: Oh, really?

MYERS: Yes.

COSTELLO: You want the mailing address?

MYERS: Yes, yes, yes.

COSTELLO: OK.

MYERS: Well, because we tried to e-mail them back and they didn't respond and it's like, it was just too much of a hassle. So, anyway, if you do it, it's not by time anymore. We were doing it the first person, but then people would dial up who were upset that we were giving it to the quickest person. So it's by random choice.

Which famous composer will be commemorated with a postage stamp today? The answer was Henry Mancini. And in a recent study, what percentage of people said they eat fresh fish? And, you know, I got a lot of answers. I would say, I don't know, maybe half the answers were 33 percent. But, in fact, it was right on the screen and it said 34 percent. So I couldn't take 33. COSTELLO: Really? I thought it was 33 percent myself.

MYERS: Well, it wasn't.

COSTELLO: So, again, no winner today because no one put their address on the e-mail. So we'll get...

MYERS: Well, the winner didn't. I have an awful lot of other people that did and we'll still probably send one out secretly.

COSTELLO: This is so confusing.

MYERS: I've got extra ones.

COSTELLO: But what's not confusing is we're going to ask the new questions at 6:50 Eastern time.

MYERS: That's right.

COSTELLO: And there will be a winner, darn it.

MYERS: We're going to do it.

COSTELLO: All right, thank you, Chad.

MYERS: All right.

COSTELLO: Still to come on DAYBREAK, we will talk to a terror analyst about the latest tape released with a voice some say is that of Osama bin Laden.

And you know what April 15 on the calendar means. Do you feel your income taxes are fair? You may find some of our new poll numbers quite interesting.

And Google goes local. But that's not the only thing that's changing with the popular search engine.

And before you stock up on fertilizer and weed killers, find out what you should be shopping for at your favorite home improvement store. We'll have some expert advice.

This is DAYBREAK for April 15.

(COMMERCIAL BREAK)

COSTELLO: 6:15 Eastern time.

Time for a little business buzz now.

Changes may be in store for Google's new g-mail service.

Carrie Lee has more live from the NASDAQ market site.

You know, when Google came out with this, a lot of people thought it was an April Fool's Day joke. But it is real, but they are having problems.

CARRIE LEE, CNN CORRESPONDENT: It is real, Carol. Incredible services within this e-mail service. Google calls it g-mail. They announced this about two weeks ago. And part of the concern here among some groups is that there's going to be some search capability built into this g-mail service, basically having some advertising and personal messages that are placed after searching for key search words.

This is a point of contention among some privacy groups and a California state senator. The "Wall Street Journal" online today reporting that the company is now considering giving people the option to either opt in or opt out of this advertising portion of the service. So that's the latest on the search capabilities.

Meanwhile, the "New York Times" is reporting that Google plans to announce today that it's going to start offering companies the option of local advertising limited to Internet users in selected regions. So this is separate from the g-mail service, basically a yellow pages system online for local businesses. So a lot happening in the technology area related to Google these days -- Carol.

Meanwhile...

COSTELLO: It will be interesting...

LEE: Yes.

COSTELLO: Oh, go ahead.

LEE: It is.

COSTELLO: Go ahead.

LEE: Oh, I just wanted to give you a quick check on the markets. Looking like a little bit of a higher open right now. We did see just a slight bit of selling yesterday. All of the major market indices ending a little bit lower. Last night, we heard from Apple Computer and Texas Instruments, both reporting profits for the recent quarter. Apple saw profits more than triple, sales up about 30 percent. Texas Instruments saw quarterly profit rise threefold. Apple was up about 10 percent in the after hours session. Those IPods really catching on like wildfire. So those are stocks to watch today.

COSTELLO: I know. I'm yearning for one but I want someone else to buy it for me.

LEE: Yes. I don't know if those iPod minis are still back ordered, but definitely a hot ticket. You know, this is the first time the company sold more IPods than computers. So really a strategy shift going on at Apple. A lot of people like that product, for sure.

COSTELLO: Oh, I bet.

Carrie Lee, live from the NASDAQ market site this morning.

Coming up on DAYBREAK, all the tools you need to make your neighbors green with envy when they see your yard this summer.

Chad is back with some good advice after a quick break.

(COMMERCIAL BREAK)

COSTELLO: A top Italian diplomat is heading to Iraq to try to win the release of three hostages. The mission follows the killing of another Italian, the first confirmed execution since insurgents began abducting civilians. The killing of the private security guard was videotaped and the tape was sent to an Arab TV network, which did not air it because it was much too graphic.

A French journalist has been freed, though, after four days as a hostage in Iraq, and he told us his story a short time ago.

(BEGIN VIDEOTAPE)

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.

(END VIDEOTAPE)

COSTELLO: More than 40 hostages have been taken captive in recent days, 32 of whom have been released.

DAYBREAK will be right back.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (voice-over): Warren Buffett, the billionaire nicknamed the oracle of Omaha, is also known for his folksy style and love of Coca-Cola. In 2003, "Forbes" magazine named him the second richest man in the world. And through his company, Berkshire Hathaway, he controls one of the most liquid sources of capital on earth.

But his approach is simple. Some even call it quaint.

WARREN BUFFETT, CHAIRMAN & CEO, BERKSHIRE HATHAWAY: If I find a business that I understand that's selling for less than it's worth, I'll buy it.

UNIDENTIFIED MALE: In the late '80s, critics said he was losing his touch when he stayed away from technology stocks. But when the dot-com bubble burst, Buffett was still standing. This year, Buffett entered the political arena, serving as Arnold Schwarzenegger's economic adviser in the California governor's race. And at 73, the man dubbed greatest investor of all time isn't slowing down. He's still looking for his next lucrative deal and doing things in his own unique way.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired April 15, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A new audiotape with a very anti- American message. But is it really the voice of al Qaeda's infamous leader, Osama bin Laden?
This is DAYBREAK for Thursday, April 15.

And good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Here are the latest headlines for you now.

There is a new audiotape out this morning that, well, it just might have the voice of Osama bin Laden on it. The speaker threatens revenge on the United States 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.

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 and 50 wounded in that bombing.

And 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.

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

(WEATHER REPORT)

COSTELLO: Let's talk more about that new audiotape attributed to Osama bin Laden. It's just out today. But how the tape's message is received in the Middle East may be as important as who the messenger is.

Our senior international editor David Clinch joins me on the set with some analysis of this tape. First of all, this tape was delivered to the both Arab television networks?

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Right. To, first of all, the Arab television network Al-Arabiya and then later to Al Jazeera. And, of course we begin with our mandatory disclaimer. We do not know that this is Osama bin Laden. We never know for sure when these audiotapes play whether, in fact, it is him. We can only say that our experts, who have listened to many, many tapes of him, say that it sounds like him, it sounds like tapes that have been said by the CIA and others to be him before.

COSTELLO: Is this message different from the others?

CLINCH: Well, what's always interesting to us -- it is different. And what's always interesting to us is, first of all, we look for references that date it. And there are two references that date this tape. Again, we're not saying for sure that it is Osama, but the two dated references that are most interesting are, first of all, the attack on Sheikh Yassin by Israel, the assassination of the Hamas leader Sheikh Yassin.

Interestingly, on the editorial side, Osama bin Laden promising revenge on the United States for that attack. And, of course, it's always interesting to us when we view this is that we can draw distinctions in our coverage between what happens in Iraq, what happens in Israel, what happens everywhere else. But from the terrorists' point of view, and, again, not saying this is Osama, but from the al Qaeda point of view, those distinctions don't exist.

What happens by Israel happens by the United States. And that's made clear in this tape.

The other dated reference is to the Madrid, both to the September 11 attacks in the U.S., but also to the Madrid attacks in March.

COSTELLO: In March.

CLINCH: So that makes the tape recorded within the last month or so. So that's interesting.

COSTELLO: And, also, it vows revenge on the United States, but it wants a truce with European nations...

CLINCH: Right.

COSTELLO: ... if?

CLINCH: The voice purporting to be Osama promises a truce for European nations who stop attacking Muslims and says that those European nations have three months from now, from the date of the airing of this tape, to take action that shows that they will no longer attack Muslims.

Now, what that means, of course, we don't really know. We talked about this earlier. We try not to pretend that we get inside the mind of the terrorists as they say statements, but, of course, the timing of these things is always interesting. Both on the Israel side, we had Prime Minister Sharon and President Bush last night with their controversial statements on a Gaza withdrawal plan. And then, of course, the timing in Spain and in Europe, the new Spanish prime minister being sworn in today. He's already promised to pull troops out of Iraq.

It's a very interesting timing and that's really what matters, the timing for the audience in Europe and, of course, for the audience in the Middle East, where the United States and Europe are very vulnerable to the image of being aggressive in the Middle East right now with what's going on in Iraq.

COSTELLO: And we're going to talk with a terrorism expert in the next half hour of DAYBREAK.

CLINCH: OK.

COSTELLO: Thank you very much, David Clinch.

CLINCH: All right.

COSTELLO: 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 now on their way to Iraq to try to secure the release of the remaining hostages. The militants are demanding that Italian troops leave Iraq.

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.

And we also have new pictures to show you out of Falluja this morning. These pictures are of Iraqi insurgents with their faces covered. They are heavily armed. You're going to see those pictures in just a second.

But let's head live to Baghdad now and Jane Arraf -- Jane, you have been in Iraq for a long time.

When the Iraqi people hear of grizzly killings by Iraqi kidnappers, are they outraged?

JANE ARRAF, CNN CORRESPONDENT: Many of them are, Carol. I mean these are people who obviously say that civilians should not be subjected to this sort of thing. Even people who believe that U.S. troops shouldn't be here certainly draw a difference between U.S. soldiers, or any soldiers, for that matter, and civilians.

Now, these Italians were security guards. There are a variety of different people, as you know, who have been kidnapped. Some of them are civilian contractors.

There's quite a bit of a resentment against contractors, whom Iraqis believe are taking jobs that they could be doing at unimaginable salaries. But that generally doesn't translate into any desire to see them harmed or any happiness when things like this happen -- Carol.

COSTELLO: And I was specifically referring to the videotape that Al Jazeera received of that Italian hostage being killed in such a grizzly way that even Al Jazeera not showing the pictures to its audience.

Let's move on to Najaf right now as we take a look at more of those pictures of insurgents in Falluja. And they're holding weaponry. They have rocket propelled grenades. You can see them there. We'll show those pictures again.

But let's talk about Najaf, because U.S. troops are gathered outside of that city this morning.

ARRAF: They are gathered outside that city to make good their threat, if they have to, to capture or kill Muqtada al-Sadr. Now, they're obviously hoping it won't come to that. And there are indications, that, indeed, it won't. Negotiations going on between senior religious leaders, possibly with the involvement of Iran, to try to get a peaceful resolution to this.

There are very few things people are afraid of more than U.S. forces in Najaf and the effect that would have. It's a holy city for Shias all over the world. But the negotiations are going on and there are indications that Muqtada al-Sadr may agree to be tried by Iraqis after the U.S. hands over power. There is an arrest warrant, of course, issued for him.

He won't be handed over to the U.S., he says, and he is demanding that those troops withdraw -- Carol.

COSTELLO: Jane Arraf live in Baghdad.

And, of course, those pictures that we just saw were of U.S. Marines around the city of Najaf.

Jane Arraf live from Baghdad this morning.

It is over, at least until May. That's when the 9/11 Commission will next hold hearings. But it will be busy in the meantime, sorting through a lot of information, hopefully leading to why the attacks of 9/11 were not foiled.

Let's head live to D.C. and Bill Prasad -- good morning, Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.

The U.S. is still very vulnerable, that's what the leaders of the 9/11 Commission say after two days of hearings this week in Washington, D.C.

The focus was on the CIA and the FBI.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): George Tenet, CIA director...

GEORGE TENET, CIA DIRECTOR: We made mistakes.

PRASAD: He blamed intelligence failures on, among other things, cutbacks in manpower and resources.

TENET: But we've made an enormous amount of progress.

PRASAD: Improvements since September 11. But then Tenet said something no one really wanted to hear.

TENET: It will take us another five years to have the kind of clandestine service our country needs.

PRASAD: Against that backdrop, a new audiotape, supposedly from Osama bin Laden. The voice on the tape again threatening the U.S. The Commission puts pressure on the intelligence agencies to stop bin Laden.

TOM KEAN, 9/11 COMMISSION CHAIRMAN: These agencies are the most important agencies in the war on terror, I think, more important than the Army, more important than anything else.

PRASAD: The Commission is considering giving new muscle to Tenet's successor, including hiring and budget power over the other intelligence agencies. Also among consideration, the creation of a new domestic intelligence agency, taking the job away from the FBI, something that agency opposes.

ROBERT MUELLER, FBI DIRECTOR: I do believe that creating a separate agency to collect intelligence in the United States would be a grave mistake.

PRASAD: But the Commission vows to choose a new path.

UNIDENTIFIED MALE: There is a train coming down the track. There are going to be very real changes made.

(END VIDEOTAPE)

PRASAD: The Commission did applaud some of the reforms adopted by the various agencies, but they say it's not enough, especially when the safety of the United States is on the line -- Carol.

COSTELLO: Bill Prasad live from Washington, D.C. this morning.

For more on the September 11 hearings, be sure to stick around for "American Morning." 9/11 Commissioner Slade Gorton will be a guest. Of course, "American Morning" comes your way at 7:00 Eastern time.

Chad is walking to the set right now because normally...

CHAD MYERS, CNN CORRESPONDENT: Carol...

COSTELLO: ... we would reveal the winner of our DAYBREAK coffee quiz. But...

MYERS: But the winner didn't send in the address.

COSTELLO: Well, you don't really have to send in your address, but you have to send in your first and last name and where you're from.

MYERS: No.

COSTELLO: Is that right, executive producer Brian?

MYERS: Well, anyway, we've got a lot of...

COSTELLO: He's not answering me.

MYERS: We've got an awful lot of things that were going on yesterday, too. So we -- here are the answers to the DAYBREAK quiz. But when we ask the questions today we do need your mailing address with it, please.

COSTELLO: Oh, really?

MYERS: Yes.

COSTELLO: You want the mailing address?

MYERS: Yes, yes, yes.

COSTELLO: OK.

MYERS: Well, because we tried to e-mail them back and they didn't respond and it's like, it was just too much of a hassle. So, anyway, if you do it, it's not by time anymore. We were doing it the first person, but then people would dial up who were upset that we were giving it to the quickest person. So it's by random choice.

Which famous composer will be commemorated with a postage stamp today? The answer was Henry Mancini. And in a recent study, what percentage of people said they eat fresh fish? And, you know, I got a lot of answers. I would say, I don't know, maybe half the answers were 33 percent. But, in fact, it was right on the screen and it said 34 percent. So I couldn't take 33. COSTELLO: Really? I thought it was 33 percent myself.

MYERS: Well, it wasn't.

COSTELLO: So, again, no winner today because no one put their address on the e-mail. So we'll get...

MYERS: Well, the winner didn't. I have an awful lot of other people that did and we'll still probably send one out secretly.

COSTELLO: This is so confusing.

MYERS: I've got extra ones.

COSTELLO: But what's not confusing is we're going to ask the new questions at 6:50 Eastern time.

MYERS: That's right.

COSTELLO: And there will be a winner, darn it.

MYERS: We're going to do it.

COSTELLO: All right, thank you, Chad.

MYERS: All right.

COSTELLO: Still to come on DAYBREAK, we will talk to a terror analyst about the latest tape released with a voice some say is that of Osama bin Laden.

And you know what April 15 on the calendar means. Do you feel your income taxes are fair? You may find some of our new poll numbers quite interesting.

And Google goes local. But that's not the only thing that's changing with the popular search engine.

And before you stock up on fertilizer and weed killers, find out what you should be shopping for at your favorite home improvement store. We'll have some expert advice.

This is DAYBREAK for April 15.

(COMMERCIAL BREAK)

COSTELLO: 6:15 Eastern time.

Time for a little business buzz now.

Changes may be in store for Google's new g-mail service.

Carrie Lee has more live from the NASDAQ market site.

You know, when Google came out with this, a lot of people thought it was an April Fool's Day joke. But it is real, but they are having problems.

CARRIE LEE, CNN CORRESPONDENT: It is real, Carol. Incredible services within this e-mail service. Google calls it g-mail. They announced this about two weeks ago. And part of the concern here among some groups is that there's going to be some search capability built into this g-mail service, basically having some advertising and personal messages that are placed after searching for key search words.

This is a point of contention among some privacy groups and a California state senator. The "Wall Street Journal" online today reporting that the company is now considering giving people the option to either opt in or opt out of this advertising portion of the service. So that's the latest on the search capabilities.

Meanwhile, the "New York Times" is reporting that Google plans to announce today that it's going to start offering companies the option of local advertising limited to Internet users in selected regions. So this is separate from the g-mail service, basically a yellow pages system online for local businesses. So a lot happening in the technology area related to Google these days -- Carol.

Meanwhile...

COSTELLO: It will be interesting...

LEE: Yes.

COSTELLO: Oh, go ahead.

LEE: It is.

COSTELLO: Go ahead.

LEE: Oh, I just wanted to give you a quick check on the markets. Looking like a little bit of a higher open right now. We did see just a slight bit of selling yesterday. All of the major market indices ending a little bit lower. Last night, we heard from Apple Computer and Texas Instruments, both reporting profits for the recent quarter. Apple saw profits more than triple, sales up about 30 percent. Texas Instruments saw quarterly profit rise threefold. Apple was up about 10 percent in the after hours session. Those IPods really catching on like wildfire. So those are stocks to watch today.

COSTELLO: I know. I'm yearning for one but I want someone else to buy it for me.

LEE: Yes. I don't know if those iPod minis are still back ordered, but definitely a hot ticket. You know, this is the first time the company sold more IPods than computers. So really a strategy shift going on at Apple. A lot of people like that product, for sure.

COSTELLO: Oh, I bet.

Carrie Lee, live from the NASDAQ market site this morning.

Coming up on DAYBREAK, all the tools you need to make your neighbors green with envy when they see your yard this summer.

Chad is back with some good advice after a quick break.

(COMMERCIAL BREAK)

COSTELLO: A top Italian diplomat is heading to Iraq to try to win the release of three hostages. The mission follows the killing of another Italian, the first confirmed execution since insurgents began abducting civilians. The killing of the private security guard was videotaped and the tape was sent to an Arab TV network, which did not air it because it was much too graphic.

A French journalist has been freed, though, after four days as a hostage in Iraq, and he told us his story a short time ago.

(BEGIN VIDEOTAPE)

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.

(END VIDEOTAPE)

COSTELLO: More than 40 hostages have been taken captive in recent days, 32 of whom have been released.

DAYBREAK will be right back.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (voice-over): Warren Buffett, the billionaire nicknamed the oracle of Omaha, is also known for his folksy style and love of Coca-Cola. In 2003, "Forbes" magazine named him the second richest man in the world. And through his company, Berkshire Hathaway, he controls one of the most liquid sources of capital on earth.

But his approach is simple. Some even call it quaint.

WARREN BUFFETT, CHAIRMAN & CEO, BERKSHIRE HATHAWAY: If I find a business that I understand that's selling for less than it's worth, I'll buy it.

UNIDENTIFIED MALE: In the late '80s, critics said he was losing his touch when he stayed away from technology stocks. But when the dot-com bubble burst, Buffett was still standing. This year, Buffett entered the political arena, serving as Arnold Schwarzenegger's economic adviser in the California governor's race. And at 73, the man dubbed greatest investor of all time isn't slowing down. He's still looking for his next lucrative deal and doing things in his own unique way.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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