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CNN Live At Daybreak

In Utica, Illinois, Extensive Damage From Severe Storms; Simultaneous Attacks on Iraqi Police Stations

Aired April 21, 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.


(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: The school, the bank, everything, it's gone.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: Violent weather takes a toll in northern Illinois.

It is Wednesday, April 21.

This is DAYBREAK.

And good morning to you.

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

Here are the latest headlines for you now.

Powerful tornadoes ripped through parts of Illinois and Indiana, killing four people. Daylight will reveal the extent of the damage left by those storms. The cleanup has already begun.

It is another deadly morning in Iraq. Huge explosions ripped through three police stations in Basra at nearly the same time. At least 40 Iraqis are dead, including children.

Israeli forces killed four more Palestinians in Gaza this morning. The Israeli military moved in with tanks and bulldozers. They exchanged fire with Palestinian gunmen.

The man who exposed Israel's nuclear secrets walked out of prison less than one hour ago. He's spent 18 years behind bars, but that clearly did not break his spirit. He says he is proud of what he did.

(WEATHER REPORT)

COSTELLO: As we've been telling you, people in several Midwestern communities are waking up to see extensive damage from severe storms. One of those towns is mourning its dead. There were tornadoes or apparent tornadoes in Utica and Joliet, Illinois, and in Kokomo, Indiana. At least four are dead in Utica, where a tavern was literally flattened. Dozens of other buildings in a three to four block area were damaged or destroyed. In Joliet, a roof collapsed in a drug store. About 15,000 people are without power this morning in northern Illinois and some buildings also damaged in Indiana. But most of the tornado sightings were only brief touchdowns, as you heard Chad say.

We want to take you now live to Utica, Illinois. That was hit hardest by the storm.

CNN's Lisa Leiter is in Utica.

She joins us on the phone this morning.

Tell us exactly where you are there -- Lisa.

LISA LEITER, CNN CORRESPONDENT: Well, Carol, we just drove into Utica. Right now we are parked in front of an elementary school, where there is extensive damage here, and not far from me is that tavern that you described, where four people, at least four people are confirmed dead after being trapped in the rubble of that collapsed restaurant there.

The fire chief earlier saying that when these people heard the sirens, they went down into the basement of the restaurant and then the building caved in on them.

Right now, emergency crews have been working through the night and are still working to dig through that rubble. They are using generator powered lights, bright lights, here, because this town and many other towns in the area are without power.

We do have a more updated number from Con Edison, the power company in the area. That 15,000 number, as of about an hour or two ago, was taken down to 9,000 homes without power, most of those in the Joliet area, which is east of where we are right now.

You know, really, these storms left a trail of destruction today in this area. Many damaged homes, downed power lines and piles of debris everywhere. We obviously haven't had a chance yet to walk through the town and really get a good sense of how extensive the damage is but...

COSTELLO: Lisa, can I interrupt you for just a second?

LEITER: Sure.

COSTELLO: We're seeing pictures now, amateur video coming to us, of the tornado. And I wanted to bring Chad in, if I could, right now, to explain what we're seeing.

CHAD MYERS, CNN CORRESPONDENT: Carol.

Well, we're not seeing too much here, Carol, that I can tell. I'm looking at some rain shafts here, looking at, obviously, some gray clouds. The, unfortunately the banner now getting in the way of that. But now I'm seeing the -- a little bit of debris on the ground. Do you see that -- actually, can we take that banner off? Do you mind? Because that's exactly where we want to see it -- that DAYBREAK banner? There we go. Thanks. Right there on the ground you see the, like almost like a dust storm developing. And that is actually the tornado itself picking up dust, picking up dirt when it actually -- when the touchdown was made. So many of these were just funnels yesterday, skipping along, one after another, barely touching down then coming back up again. And here you can actually see the storm just...

COSTELLO: Oh, it just...

MYERS: Ooh, that looks like scud there, we call that. Rising air off the ground and that circulation underneath that scud eventually turns into a tornado on the ground -- Carol.

COSTELLO: Truly frightening.

And, Lisa, let me bring you back in.

Was there much warning for people there?

LEITER: Well, some people said they did receive a warning. Whether it was from the warning sirens that are sounded during these types of events, and also some people that, frankly, got calls from friends or relatives in neighboring towns. And there are a couple of residents who said they went right into the basement. And we have some comments from one man who said he heard the sirens, went into the basement, came back up because he didn't hear anything and then saw the tornado out his window.

So even though there was some warning, you know, there was still -- this still happened very quickly for many people here.

COSTELLO: All right, Lisa Leiter reporting live from Utica, Illinois.

We'll get back to her throughout DAYBREAK and, of course, we'll have more on those deadly storms that ripped through parts of the Midwest overnight.

You can find the latest on the Midwest storm damage on our Web site -- cnn.com/weather.

This has been a particularly violent and deadly day in Iraq. Five explosions near three police stations and a police training facility in Basra has killed at least 40 people and injured more than 200. In Fallujah, insurgents attacked U.S. Marines. U.S. officials say the Marines may assault the city if insurgents do not lay down their weapons.

Halliburton says three of four bodies found last week were, indeed, employees of its subsidiary, KBR. The three had been missing since an attack on the fuel convoy outside of Baghdad.

And the Dominican Republic is pulling its 300 troops out of Iraq ahead of schedule. Spain and Honduras are also pulling troops out of Iraq.

We want to get more details, though, on those bombings that claimed so many lives in Basra this morning.

Our Jim Clancy following that story.

He joins us live from Baghdad to tell us more -- hello, Jim.

JIM CLANCY, CNN CORRESPONDENT: Quite possibly, Carol, this is the worst day since the beginning of the Iraq conflict more than a year ago. In the southern city of Basra, Iraq's second largest, more than 40 people reported killed in three suicide car bomb attacks on Iraqi police stations. A fourth suicide car bomb at an Iraqi police academy said to kill 10 more. A fifth bomb blast -- not known if this was also a suicide car bomb. No reports there on the casualty toll. But clearly, with more than 200 people wounded, some of them very severely, this death toll could, and likely will, go higher.

Charred vehicles the only thing that were left there, still smoldering, still burning. Among those vehicles were two vans that are used as school buses, one for preschool children, the other for a middle girl or girls' school in Basra. Both burned out, seats shredded. At least 10 children, schoolchildren, reported killed.

Now, while the ostensible or the apparent target of all of this was the Iraqi police stations, it must be said that because of the timing of the attacks, during the peak rush hour in the morning, it's likely that the real target may have been Iraqi civilians. The real message, to spread terror, written in their blood, the blood of Iraqi civilians here. The police stations perhaps adding a nationalist tone. But this was not a nationalist attack, this was a terrorist attack, the worst ever seen by Basra.

Well, April has been a terribly bloody month across some parts of Iraq, Basra had some relative security and calm. These car blasts, these suicide car bombings this day have shattered any notion it is beyond the reach of violence today.

COSTELLO: Jim Clancy reporting live from Baghdad this morning.

Former Secretary of State Madeleine Albright talks about the situation in Iraq on "American Morning." That begins at 7:00 Eastern.

In the midst of the upsurge in violence in Iraq, U.S. troops face yet another growing problem -- coalition allies who are pulling out.

Our Jamie McIntyre looks at how the American military is trying to compensate for the loss.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): With the U.S. military taking casualties in Iraq at the highest rate since the war began and with two allies, Spain and Honduras pulling forces out of the coalition, the Pentagon is making plans for a quick infusion of reinforcements just in case.

GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: We have done a scrub of forces that could be available essentially immediately to in the next few weeks to the next couple of months in case we need more forces.

MCINTYRE: Currently, there are 135,000 U.S. troops in Iraq including 20,000 whose combat tours were recently extended by three months but even as it makes contingency plans to boost U.S. force levels above 135,000, the Pentagon insists the option is not under active consideration.

DONALD RUMSFELD, DEFENSE SECRETARY: Are we considering it, no, but have we prepared, you bet.

MCINTYRE: The abrupt departure of 1,300 Spanish troops and 370 Honduran forces has forced the U.S. to fill the gap with soldiers from the just extended 2nd Armored Cavalry Regiment. It's also prompted a flurry of calls by America's top diplomat to urge other coalition partners not to follow suit.

COLIN POWELL, SECRETARY OF STATE: I'm getting solid support for our efforts, commitments to remain and finish the job that they came to do.

MCINTYRE: The Pentagon believes the key to success between now and the June 30th turnover of sovereignty is convincing the Sunni minority they have a stake in Iraq's future and motivating the Iraqi police and military to battle the insurgents.

PAUL WOLFOWITZ, DEPUTY SECRETARY OF DEFENSE: They need to feel and to have their friends and relatives feel that they're fighting for Iraq not for the Americans.

(END VIDEOTAPE)

COSTELLO: He is a decorated Vietnam War hero. But now John Kerry's war record is being attacked. Is this a battle he can win? Find out how he's fighting back.

Plus, the man who exposed Israel's nuclear secrets out of prison this morning. He's not exactly free, but, oh, is he defiant as ever. We're going to take you live to Israel for one bizarre news conference.

Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Docking confirmed. New residents have arrived at the international space station.

(END VIDEO CLIP)

COSTELLO: That new crew arrived just this morning aboard a Russian rocket. We'll have a live report for you later this hour.

And those in the business of selling sex are tackling a condom controversy. We'll take you behind the scenes of the porn industry for both sides of the debate.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:14 Eastern time.

Here's what's all new this morning.

In Basra, at least 40 dead, including 10 schoolchildren. They were killed in several explosions at three police stations in southern Iraq.

Tornadoes sweep through north central Illinois, leaving a 60 mile path of destruction into the suburbs of Chicago. At least four people are dead, several others injured.

In money news, Federal Reserve Board Chairman Alan Greenspan appears on Capitol Hill this morning to report on the nation's economy. He told a Senate panel Tuesday the economy has picked up again.

In sports, you knew it would happen -- 19-year-old Lebron James is the NBA Rookie of the Year. The Cleveland Cavalier becomes the youngest player to be named the league's top rookie.

In culture, is "The Passion of the Christ" too graphic for television's four largest networks? Possibly. Executives of the networks say it's unlikely they will make the deal -- make a deal, rather, to show the movie on television -- Chad.

MYERS: Carol, good morning.

(WEATHER REPORT)

COSTELLO: And those are the latest headlines for you.

You know, if you're watching us and you've been affected by those tornadoes, send us an e-mail, daybreak@cnn.com, and describe the situation for us. It's daybreak@cnn.com.

It is back to Capitol Hill this morning for Federal Reserve Chairman Alan Greenspan. His comments before law makers Tuesday left Wall Street a little deflated. Let's see how the overseas markets are being affected.

For that, we turn to Jim Boulden live in London -- good morning, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Hi.

Good morning.

Yes, you can see we have a bit of deflation here, as well, though these markets are rebounding a little bit off of their lows. But it was Wall Street's dramatic dive last night, after Mr. Greenspan's statements, that has affected these markets. But I have to say that everything here now really is focused on Greenspan's testimony later. His -- he will start talking -- with these markets, you'll have about an hour left in trading. So we may not get too much reaction today. We may see some of it tomorrow.

But his comments yesterday have definitely affected markets here. The sense of it is that interest rate rises in the U.S. will be coming along.

You've got some markets here, they were very, very good over the last couple of days, the markets up maybe a 20, 21 month high for the FTSE. But as you see today, not doing that at all, as well.

The currency market very much affected, as well. The dollar rising strongly against the euro, very strongly against the pound, much higher than it had been this morning. Again, the idea is that if you're going to get interest rate rises, they're going to come from the U.S. It's unlikely to happen here in Europe or in the U.K. any time soon. And that means that if you want to get somewhere where interest rates are going up you put your money into the dollar, and that's what European traders are doing -- back to you.

COSTELLO: Jim Boulden live in London this morning.

The new crew cometh. After a stellar sendoff, the Soyuz rocket reaches its destination. More on the happy homecoming later this hour.

And more questions about John Kerry's war record.

This is DAYBREAK for Wednesday.

(COMMERCIAL BREAK)

COSTELLO: Both John Kerry and George Bush have skipped public financing, freeing them from the program's spending limits. Well, now it seems the Senator Kerry's the limit for their fundraising efforts. Here are some records set so far. Bush has the most money raised, $185 million. He's also spent most in a month, $50 million.

Kerry has some firsts, as well -- the most money raised by a Democratic presidential candidate, $85 million; and the most raised over the Internet in one day, $2.6 million.

A decorated veteran who served in John Kerry's Navy unit say allegations Kerry made about war crimes there decades ago are lies and make him unfit to be president. John O'Neill joined the Navy's Coastal Division 11 two months after Kerry left Vietnam. He says Kerry knew he was lying when he accused fellow servicemen of atrocities.

(BEGIN VIDEO CLIP)

JOHN O'NEILL, ATTORNEY & VIETNAM VET: I think you're going to find many people, many people from Coastal Division 11, are coming forward now. I've been in contact with them. We drew the black bane. We'd much rather stay at home. Most of us would much rather have nothing to do with this. I've been contacted at least 50 times over the past 30 years by Kerry's opponents of various kinds. I've refused to do it.

Why are we coming forward? Because we were there, we know the truth and we know that this guy is unfit to be commander-in-chief.

(END VIDEO CLIP)

COSTELLO: The criticism comes as the Kerry campaign announces it will post all the senator's Navy records on its Web site.

CNN's Kelly Wallace has more for you on that.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN CORRESPONDENT (voice-over): The move comes as John Kerry's former commanding officer says during Vietnam he questioned whether the Senator earned the first of his three Purple Hearts.

Lieutenant Commander Grant Hibbard told the "Boston Globe" last week: "People in the office were saying I don't think we got any fire and there is this guy holding a little piece of shrapnel in his palm."

On NBC's "Meet the Press," Kerry was asked if to answer that charge he would follow President Bush's lead and release all his military records.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: They're available to you to come and look at. I think that's a very unfair characterization by that person. I mean politics is politics. The medical records show that I had shrapnel removed from my arm.

WALLACE: A handful of documents on the Web site Tuesday evening include previously released information such as the three certificates noting Kerry was awarded Purple Hearts for wounds received in action.

John Dalton is a former Navy secretary and now a Kerry supporter.

JOHN DALTON, FMR. NAVY SECRETARY: When you're in a military combat zone and you get hit by enemy fire, you deserve a Purple Heart period, paragraph. I mean that's the way it is.

WALLACE: The Bush-Cheney campaign waded into the controversy accusing the Senator of waffling about releasing his records.

KEN MEHLMAN, BUSH-CHENEY CAMPAIGN MANAGER: I think what we're pointing out is that on this issue, like on many others, what John Kerry says and what John Kerry does are two very different things.

(END VIDEOTAPE)

COSTELLO: What are the legal rights of so-called enemy combatants? That tops our look at news across America this Wednesday.

The Supreme Court is expected to rule by late June on whether detainees at Guantanamo Bay, Cuba are under the jurisdiction of the U.S. courts. The lawsuits were filed on behalf of 14 of the more than 600 detainees.

"USA Today" editor Karen Jurgensen has resigned in the wake of a scandal involving one of the paper's star reporters. An internal investigation found evidence that reporter Jack Kelly had made up parts of stories plagiarized and lied.

In Oregon, a judge ruled that Multnomah County must stop issuing same-sex marriage licenses. But the state was ordered -- that would be Oregon -- was ordered to recognize the more than 3,000 marriages that were already sanctioned. The judge says the final decision on the legality of the unions must be made by the state Supreme Court.

Here's what's happening in the next half hour of DAYBREAK.

A deadly tornado leaves a path of destruction and death across parts of the Midwest. We're going to have the latest from that part of our country just ahead.

Plus, the casualty count climbs in Basra after a series of deadly explosions. We'll tell you live to Baghdad.

And a nuclear whistleblower goes free after 18 years behind bars. But it comes with restrictions. We'll have a live report for you out of Israel.

This is DAYBREAK for Wednesday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: Want to read the economic tea leaves yourself? Well, one key economic indicator is consumer confidence. Individual Americans are critical to the economy's health because they provide two thirds of all economic spending. And lately, consumers have been in a less generous mood.

Confidence was higher at the start of this year, but recently dipped to a five month low. Consumers are showing increased concern over the job market.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired April 21, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: The school, the bank, everything, it's gone.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: Violent weather takes a toll in northern Illinois.

It is Wednesday, April 21.

This is DAYBREAK.

And good morning to you.

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

Here are the latest headlines for you now.

Powerful tornadoes ripped through parts of Illinois and Indiana, killing four people. Daylight will reveal the extent of the damage left by those storms. The cleanup has already begun.

It is another deadly morning in Iraq. Huge explosions ripped through three police stations in Basra at nearly the same time. At least 40 Iraqis are dead, including children.

Israeli forces killed four more Palestinians in Gaza this morning. The Israeli military moved in with tanks and bulldozers. They exchanged fire with Palestinian gunmen.

The man who exposed Israel's nuclear secrets walked out of prison less than one hour ago. He's spent 18 years behind bars, but that clearly did not break his spirit. He says he is proud of what he did.

(WEATHER REPORT)

COSTELLO: As we've been telling you, people in several Midwestern communities are waking up to see extensive damage from severe storms. One of those towns is mourning its dead. There were tornadoes or apparent tornadoes in Utica and Joliet, Illinois, and in Kokomo, Indiana. At least four are dead in Utica, where a tavern was literally flattened. Dozens of other buildings in a three to four block area were damaged or destroyed. In Joliet, a roof collapsed in a drug store. About 15,000 people are without power this morning in northern Illinois and some buildings also damaged in Indiana. But most of the tornado sightings were only brief touchdowns, as you heard Chad say.

We want to take you now live to Utica, Illinois. That was hit hardest by the storm.

CNN's Lisa Leiter is in Utica.

She joins us on the phone this morning.

Tell us exactly where you are there -- Lisa.

LISA LEITER, CNN CORRESPONDENT: Well, Carol, we just drove into Utica. Right now we are parked in front of an elementary school, where there is extensive damage here, and not far from me is that tavern that you described, where four people, at least four people are confirmed dead after being trapped in the rubble of that collapsed restaurant there.

The fire chief earlier saying that when these people heard the sirens, they went down into the basement of the restaurant and then the building caved in on them.

Right now, emergency crews have been working through the night and are still working to dig through that rubble. They are using generator powered lights, bright lights, here, because this town and many other towns in the area are without power.

We do have a more updated number from Con Edison, the power company in the area. That 15,000 number, as of about an hour or two ago, was taken down to 9,000 homes without power, most of those in the Joliet area, which is east of where we are right now.

You know, really, these storms left a trail of destruction today in this area. Many damaged homes, downed power lines and piles of debris everywhere. We obviously haven't had a chance yet to walk through the town and really get a good sense of how extensive the damage is but...

COSTELLO: Lisa, can I interrupt you for just a second?

LEITER: Sure.

COSTELLO: We're seeing pictures now, amateur video coming to us, of the tornado. And I wanted to bring Chad in, if I could, right now, to explain what we're seeing.

CHAD MYERS, CNN CORRESPONDENT: Carol.

Well, we're not seeing too much here, Carol, that I can tell. I'm looking at some rain shafts here, looking at, obviously, some gray clouds. The, unfortunately the banner now getting in the way of that. But now I'm seeing the -- a little bit of debris on the ground. Do you see that -- actually, can we take that banner off? Do you mind? Because that's exactly where we want to see it -- that DAYBREAK banner? There we go. Thanks. Right there on the ground you see the, like almost like a dust storm developing. And that is actually the tornado itself picking up dust, picking up dirt when it actually -- when the touchdown was made. So many of these were just funnels yesterday, skipping along, one after another, barely touching down then coming back up again. And here you can actually see the storm just...

COSTELLO: Oh, it just...

MYERS: Ooh, that looks like scud there, we call that. Rising air off the ground and that circulation underneath that scud eventually turns into a tornado on the ground -- Carol.

COSTELLO: Truly frightening.

And, Lisa, let me bring you back in.

Was there much warning for people there?

LEITER: Well, some people said they did receive a warning. Whether it was from the warning sirens that are sounded during these types of events, and also some people that, frankly, got calls from friends or relatives in neighboring towns. And there are a couple of residents who said they went right into the basement. And we have some comments from one man who said he heard the sirens, went into the basement, came back up because he didn't hear anything and then saw the tornado out his window.

So even though there was some warning, you know, there was still -- this still happened very quickly for many people here.

COSTELLO: All right, Lisa Leiter reporting live from Utica, Illinois.

We'll get back to her throughout DAYBREAK and, of course, we'll have more on those deadly storms that ripped through parts of the Midwest overnight.

You can find the latest on the Midwest storm damage on our Web site -- cnn.com/weather.

This has been a particularly violent and deadly day in Iraq. Five explosions near three police stations and a police training facility in Basra has killed at least 40 people and injured more than 200. In Fallujah, insurgents attacked U.S. Marines. U.S. officials say the Marines may assault the city if insurgents do not lay down their weapons.

Halliburton says three of four bodies found last week were, indeed, employees of its subsidiary, KBR. The three had been missing since an attack on the fuel convoy outside of Baghdad.

And the Dominican Republic is pulling its 300 troops out of Iraq ahead of schedule. Spain and Honduras are also pulling troops out of Iraq.

We want to get more details, though, on those bombings that claimed so many lives in Basra this morning.

Our Jim Clancy following that story.

He joins us live from Baghdad to tell us more -- hello, Jim.

JIM CLANCY, CNN CORRESPONDENT: Quite possibly, Carol, this is the worst day since the beginning of the Iraq conflict more than a year ago. In the southern city of Basra, Iraq's second largest, more than 40 people reported killed in three suicide car bomb attacks on Iraqi police stations. A fourth suicide car bomb at an Iraqi police academy said to kill 10 more. A fifth bomb blast -- not known if this was also a suicide car bomb. No reports there on the casualty toll. But clearly, with more than 200 people wounded, some of them very severely, this death toll could, and likely will, go higher.

Charred vehicles the only thing that were left there, still smoldering, still burning. Among those vehicles were two vans that are used as school buses, one for preschool children, the other for a middle girl or girls' school in Basra. Both burned out, seats shredded. At least 10 children, schoolchildren, reported killed.

Now, while the ostensible or the apparent target of all of this was the Iraqi police stations, it must be said that because of the timing of the attacks, during the peak rush hour in the morning, it's likely that the real target may have been Iraqi civilians. The real message, to spread terror, written in their blood, the blood of Iraqi civilians here. The police stations perhaps adding a nationalist tone. But this was not a nationalist attack, this was a terrorist attack, the worst ever seen by Basra.

Well, April has been a terribly bloody month across some parts of Iraq, Basra had some relative security and calm. These car blasts, these suicide car bombings this day have shattered any notion it is beyond the reach of violence today.

COSTELLO: Jim Clancy reporting live from Baghdad this morning.

Former Secretary of State Madeleine Albright talks about the situation in Iraq on "American Morning." That begins at 7:00 Eastern.

In the midst of the upsurge in violence in Iraq, U.S. troops face yet another growing problem -- coalition allies who are pulling out.

Our Jamie McIntyre looks at how the American military is trying to compensate for the loss.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): With the U.S. military taking casualties in Iraq at the highest rate since the war began and with two allies, Spain and Honduras pulling forces out of the coalition, the Pentagon is making plans for a quick infusion of reinforcements just in case.

GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: We have done a scrub of forces that could be available essentially immediately to in the next few weeks to the next couple of months in case we need more forces.

MCINTYRE: Currently, there are 135,000 U.S. troops in Iraq including 20,000 whose combat tours were recently extended by three months but even as it makes contingency plans to boost U.S. force levels above 135,000, the Pentagon insists the option is not under active consideration.

DONALD RUMSFELD, DEFENSE SECRETARY: Are we considering it, no, but have we prepared, you bet.

MCINTYRE: The abrupt departure of 1,300 Spanish troops and 370 Honduran forces has forced the U.S. to fill the gap with soldiers from the just extended 2nd Armored Cavalry Regiment. It's also prompted a flurry of calls by America's top diplomat to urge other coalition partners not to follow suit.

COLIN POWELL, SECRETARY OF STATE: I'm getting solid support for our efforts, commitments to remain and finish the job that they came to do.

MCINTYRE: The Pentagon believes the key to success between now and the June 30th turnover of sovereignty is convincing the Sunni minority they have a stake in Iraq's future and motivating the Iraqi police and military to battle the insurgents.

PAUL WOLFOWITZ, DEPUTY SECRETARY OF DEFENSE: They need to feel and to have their friends and relatives feel that they're fighting for Iraq not for the Americans.

(END VIDEOTAPE)

COSTELLO: He is a decorated Vietnam War hero. But now John Kerry's war record is being attacked. Is this a battle he can win? Find out how he's fighting back.

Plus, the man who exposed Israel's nuclear secrets out of prison this morning. He's not exactly free, but, oh, is he defiant as ever. We're going to take you live to Israel for one bizarre news conference.

Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Docking confirmed. New residents have arrived at the international space station.

(END VIDEO CLIP)

COSTELLO: That new crew arrived just this morning aboard a Russian rocket. We'll have a live report for you later this hour.

And those in the business of selling sex are tackling a condom controversy. We'll take you behind the scenes of the porn industry for both sides of the debate.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:14 Eastern time.

Here's what's all new this morning.

In Basra, at least 40 dead, including 10 schoolchildren. They were killed in several explosions at three police stations in southern Iraq.

Tornadoes sweep through north central Illinois, leaving a 60 mile path of destruction into the suburbs of Chicago. At least four people are dead, several others injured.

In money news, Federal Reserve Board Chairman Alan Greenspan appears on Capitol Hill this morning to report on the nation's economy. He told a Senate panel Tuesday the economy has picked up again.

In sports, you knew it would happen -- 19-year-old Lebron James is the NBA Rookie of the Year. The Cleveland Cavalier becomes the youngest player to be named the league's top rookie.

In culture, is "The Passion of the Christ" too graphic for television's four largest networks? Possibly. Executives of the networks say it's unlikely they will make the deal -- make a deal, rather, to show the movie on television -- Chad.

MYERS: Carol, good morning.

(WEATHER REPORT)

COSTELLO: And those are the latest headlines for you.

You know, if you're watching us and you've been affected by those tornadoes, send us an e-mail, daybreak@cnn.com, and describe the situation for us. It's daybreak@cnn.com.

It is back to Capitol Hill this morning for Federal Reserve Chairman Alan Greenspan. His comments before law makers Tuesday left Wall Street a little deflated. Let's see how the overseas markets are being affected.

For that, we turn to Jim Boulden live in London -- good morning, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Hi.

Good morning.

Yes, you can see we have a bit of deflation here, as well, though these markets are rebounding a little bit off of their lows. But it was Wall Street's dramatic dive last night, after Mr. Greenspan's statements, that has affected these markets. But I have to say that everything here now really is focused on Greenspan's testimony later. His -- he will start talking -- with these markets, you'll have about an hour left in trading. So we may not get too much reaction today. We may see some of it tomorrow.

But his comments yesterday have definitely affected markets here. The sense of it is that interest rate rises in the U.S. will be coming along.

You've got some markets here, they were very, very good over the last couple of days, the markets up maybe a 20, 21 month high for the FTSE. But as you see today, not doing that at all, as well.

The currency market very much affected, as well. The dollar rising strongly against the euro, very strongly against the pound, much higher than it had been this morning. Again, the idea is that if you're going to get interest rate rises, they're going to come from the U.S. It's unlikely to happen here in Europe or in the U.K. any time soon. And that means that if you want to get somewhere where interest rates are going up you put your money into the dollar, and that's what European traders are doing -- back to you.

COSTELLO: Jim Boulden live in London this morning.

The new crew cometh. After a stellar sendoff, the Soyuz rocket reaches its destination. More on the happy homecoming later this hour.

And more questions about John Kerry's war record.

This is DAYBREAK for Wednesday.

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COSTELLO: Both John Kerry and George Bush have skipped public financing, freeing them from the program's spending limits. Well, now it seems the Senator Kerry's the limit for their fundraising efforts. Here are some records set so far. Bush has the most money raised, $185 million. He's also spent most in a month, $50 million.

Kerry has some firsts, as well -- the most money raised by a Democratic presidential candidate, $85 million; and the most raised over the Internet in one day, $2.6 million.

A decorated veteran who served in John Kerry's Navy unit say allegations Kerry made about war crimes there decades ago are lies and make him unfit to be president. John O'Neill joined the Navy's Coastal Division 11 two months after Kerry left Vietnam. He says Kerry knew he was lying when he accused fellow servicemen of atrocities.

(BEGIN VIDEO CLIP)

JOHN O'NEILL, ATTORNEY & VIETNAM VET: I think you're going to find many people, many people from Coastal Division 11, are coming forward now. I've been in contact with them. We drew the black bane. We'd much rather stay at home. Most of us would much rather have nothing to do with this. I've been contacted at least 50 times over the past 30 years by Kerry's opponents of various kinds. I've refused to do it.

Why are we coming forward? Because we were there, we know the truth and we know that this guy is unfit to be commander-in-chief.

(END VIDEO CLIP)

COSTELLO: The criticism comes as the Kerry campaign announces it will post all the senator's Navy records on its Web site.

CNN's Kelly Wallace has more for you on that.

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KELLY WALLACE, CNN CORRESPONDENT (voice-over): The move comes as John Kerry's former commanding officer says during Vietnam he questioned whether the Senator earned the first of his three Purple Hearts.

Lieutenant Commander Grant Hibbard told the "Boston Globe" last week: "People in the office were saying I don't think we got any fire and there is this guy holding a little piece of shrapnel in his palm."

On NBC's "Meet the Press," Kerry was asked if to answer that charge he would follow President Bush's lead and release all his military records.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: They're available to you to come and look at. I think that's a very unfair characterization by that person. I mean politics is politics. The medical records show that I had shrapnel removed from my arm.

WALLACE: A handful of documents on the Web site Tuesday evening include previously released information such as the three certificates noting Kerry was awarded Purple Hearts for wounds received in action.

John Dalton is a former Navy secretary and now a Kerry supporter.

JOHN DALTON, FMR. NAVY SECRETARY: When you're in a military combat zone and you get hit by enemy fire, you deserve a Purple Heart period, paragraph. I mean that's the way it is.

WALLACE: The Bush-Cheney campaign waded into the controversy accusing the Senator of waffling about releasing his records.

KEN MEHLMAN, BUSH-CHENEY CAMPAIGN MANAGER: I think what we're pointing out is that on this issue, like on many others, what John Kerry says and what John Kerry does are two very different things.

(END VIDEOTAPE)

COSTELLO: What are the legal rights of so-called enemy combatants? That tops our look at news across America this Wednesday.

The Supreme Court is expected to rule by late June on whether detainees at Guantanamo Bay, Cuba are under the jurisdiction of the U.S. courts. The lawsuits were filed on behalf of 14 of the more than 600 detainees.

"USA Today" editor Karen Jurgensen has resigned in the wake of a scandal involving one of the paper's star reporters. An internal investigation found evidence that reporter Jack Kelly had made up parts of stories plagiarized and lied.

In Oregon, a judge ruled that Multnomah County must stop issuing same-sex marriage licenses. But the state was ordered -- that would be Oregon -- was ordered to recognize the more than 3,000 marriages that were already sanctioned. The judge says the final decision on the legality of the unions must be made by the state Supreme Court.

Here's what's happening in the next half hour of DAYBREAK.

A deadly tornado leaves a path of destruction and death across parts of the Midwest. We're going to have the latest from that part of our country just ahead.

Plus, the casualty count climbs in Basra after a series of deadly explosions. We'll tell you live to Baghdad.

And a nuclear whistleblower goes free after 18 years behind bars. But it comes with restrictions. We'll have a live report for you out of Israel.

This is DAYBREAK for Wednesday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: Want to read the economic tea leaves yourself? Well, one key economic indicator is consumer confidence. Individual Americans are critical to the economy's health because they provide two thirds of all economic spending. And lately, consumers have been in a less generous mood.

Confidence was higher at the start of this year, but recently dipped to a five month low. Consumers are showing increased concern over the job market.

(END VIDEOTAPE)

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