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CNN Live At Daybreak

President Bush Promising U.S. Will Not Cut and Run from Iraq; California Grand Jury Finds Enough Evidence to Send Michael Jackson to Trial

Aired April 22, 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: Home from Iraq -- Fort Hood celebrates the return of more of its troops.
It is Thursday, April 22.

This is DAYBREAK.

Good morning to you.

From the CNN global headquarters in Atlanta, this is DAYBREAK for Thursday, April 22.

I'm Carol Costello.

Here are the latest headlines right now.

A heartfelt homecoming for 4th Infantry Division soldiers at Fort Hood, Texas today. An estimated 50,000 people will be at the base to cheer more troops returning from Iraq.

Terrorism in Turkey -- a bomb explodes under a bridge in Istanbul, damaging a bus carrying Turkish military officers. No one was hurt.

A group allied with al Qaeda claims responsibility for a bombing in Saudi Arabia and vows more attacks. Four people killed, 148 others wounded.

The death toll doubles in Illinois. Eight people die in the tornadoes that swept through Utica, Illinois. All the bodies were pulled from the rubble of a tavern. No other people are missing this morning.

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

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

That was officially called an F3 tornado, somewhere between 150 and almost 200 miles per hour. The one that hit Joliet an F1 tornado, over 100 miles per hour, but certainly not the size or the width of that one that was in central and western Illinois.

(WEATHER REPORT)

COSTELLO: The chairman of the joint chiefs says the Iraq war will run over budget by as much as $4 billion by late summer and more billions of dollars will be needed after that. But President Bush is promising the U.S. will not cut and run from Iraq as long as he is in the Oval Office.

CNN's John King has more for you from the White House.

(BEGIN VIDEOTAPE)

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT (voice-over): Outlining the stakes in Iraq to newspaper editors a promise that also appeared to be a criticism of his father's choice at the end of the first Gulf War.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The Iraqi people are looking, you know, they're looking at Americans saying are we going to cut and run again? That's what they're thinking as well and we're not going to cut and run if I'm in the Oval Office.

KING: At the moment not cutting and running means increased troop levels in Iraq and a faster pace of operations that is draining money fast, so much so that key members of Congress say the $51 billion budgeted for military operations in Iraq this year will soon run out.

REP. JOHN SPRATT (D), SOUTH CAROLINA: What's the cost of 20,000 more troops?

PAUL WOLFOWITZ, DEPUTY DEFENSE SECRETARY: I can't give you that number right now.

KING: The administration thinks it can get by in Iraq until at least August with existing money but also concedes it might have to reverse course and request billions more in emergency funding before the November election.

WOLFOWITZ: We made predictions and one of them we thought the 1st Armored Division could be coming home now. That prediction turned out to be wrong.

KING: At the editor's event, Mr. Bush said he came to talk policy, not politics but, when asked, the president did take issue with how his Democratic opponent recently defined the threshold for bringing U.S. troops home.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: It was a stable Iraq, not whether or not that's a full democracy. I can't tell you what's it's going to be but a stable Iraq.

KING: Mr. Bush said democracy is essential to keeping Iraq from collapsing into chaos.

BUSH: It's necessary. It's what will change the world, help change the world.

KING: Mr. Bush also said Wednesday's bombing in Saudi Arabia and the recent attack in Madrid are reminders terrorists would like to target the United States again too.

BUSH: Our intelligence is good. It's just never perfect is the problem.

(END VIDEOTAPE)

COSTELLO: Our Web site is the place to go for all the news you need to know on the war in Iraq. The address, cnn.com.

Saudi Arabia's ambassador to the United States denies he knew about Iraq and the war plans there before Secretary of State Colin Powell. Bob Woodward asserts in "Plan of Attack" that the ambassador saw the top secret U.S. war plan two months before the war began and two days before Mr. Powell saw it. Prince Bandar commented after a White House meeting with National Security Advisor Condoleezza Rice.

(BEGIN VIDEO CLIP)

PRINCE BANDAR BIN SULTAN, SAUDI AMBASSADOR TO U.S.: And to be very honest with you, and no B.S. -- I've been in this town too long to know I should not tell you B.S. -- I didn't know about the war actually except one hour before the attack.

(END VIDEO CLIP)

COSTELLO: There you have it. Prince Bandar also denies Woodward's allegation of a secret deal with the White House to drive down gas prices before the November election.

A Santa Barbara County, California grand jury has found enough evidence to send Michael Jackson to trial. Grand jurors have been investigating allegations the pop star molested a young boy.

CNN's Miguel Marquez has more for you.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT: CNN has confirmed that a grand jury hearing evidence against Michael Jackson has reached an indictment. For the past 13 days, 19 residents of Santa Barbara County have been hearing testimony offered by Santa Barbara District Attorney Tom Sneddon against the pop star. Mr. Jackson's attorney, Benjamin Brafman, says in a statement, "Mr. Jackson and his attorneys are confident that after a trial on these charges, Mr. Jackson will be fully exonerated and that the allegations contained in the indictment will be shown to be patently false."

Brafman goes on to say that Mr. Jackson will be back in court on April 30, where he will plead not guilty to these new charges.

It's not clear yet what exact charges have been filed against the pop star.

Miguel Marquez, CNN, Santa Barbara, California.

(END VIDEOTAPE) COSTELLO: And we will talk more about the Jackson indictment with legal analyst Kendall Coffey in our Coffey Talk segment. That happens in the next hour of DAYBREAK.

Two spent nuclear fuel rods are missing in Vermont. That leads our look at Stories Across America this Thursday.

Federal officials are trying to learn how the small but highly radioactive rods got lost. They say it's unlikely the rods were taken out of the Vermont Yankee nuclear plant in Vernon. A nuclear regulatory official says the rods just may be unaccounted for.

The Food and Drug Administration says it won't be stopping any more buses of older Americans who return from Canada with cheaper prescription drugs. The agency admitted yesterday its agents stopped a bus returning to Minnesota last October. The incident was revealed after Senator Mark Dayton of Minnesota complained. Dayton, who is a millionaire, donates his entire Senate salary to pay for those bus trips.

A U.S. House bill could ease the financial strain on National Guard troops and Reservists in Iraq and Afghanistan. The Republican approved bill, approved Wednesday, would allow them to make early withdrawals from their IRS accounts and 401K programs without paying a penalty. But they'll still have to pay income tax on what they take out.

We've got more pictures, weather pictures, you will not believe. Yes it is spring, but it's hard to believe that in Oklahoma, but it's hard to believe that in Oklahoma. This firefighter is not shoveling snow. That would be hail, some of it as big as baseballs. The state was hit for a second straight day Wednesday with severe storms. One highway death is blamed on the weather. Heavy rains also caused problems. This woman was rescued from her car in Oklahoma City when it became stuck in the rising water.

And federal officials plan to inspect tornado damage in north- central Illinois today, including Utica, where eight people were killed.

Our Chris Lawrence has more on the tornado aftermath from Utica.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): From what people could see, the tornado itself lasted seconds.

UNIDENTIFIED FEMALE: It was a matter of that fast.

LAWRENCE: And just like that left years of hard work destroyed.

UNIDENTIFIED MALE: A lifetime gone.

LAWRENCE: Nowhere got hit harder than Utica, Illinois where a local tavern collapsed and crushed eight people inside.

UNIDENTIFIED FEMALE: Everything was just demolished. Nothing was in order. It was just destroyed.

UNIDENTIFIED FEMALE: And those buildings have been there forever. I mean they're over 100 years old.

LAWRENCE: The tornado blasted through homes with so much force it's hard to tell where the inside stops and the outside begins. Some of these trees took decades to grow but seconds to be ripped out by their roots.

A tornado chaser in Utica caught up to the funnel cloud just as it hit town.

UNIDENTIFIED MALE: I've seen tornadoes just as big but never this close.

LAWRENCE: Winds blew the windows out of an elementary school and rows of homes were flattened by strong winds peaking near 200 miles per hour but Utica wasn't the only place hit hard.

In nearby Joliet, twisters damaged dozens of homes and two tornadoes touched down in Indiana. One in Cocomo blew part of the roof off a skating rink sending it flying into the homes next door.

(END VIDEOTAPE)

COSTELLO: What is it like to watch a tornado rip through your community? Find out on "American Morning," when tornado survivor Jeremy Thorsin (ph) talks with Bill and Soledad. Of course, "American Morning" comes your way at 7:00 a.m. Eastern.

All of us probably have relatives who are victims of the prescription drug crisis. Now, some of our elected law makers are going to bat for older Americans forced into a life of drug smuggling.

Fingers point to al Qaeda for the devastating suicide bombing in the Saudi Arabian capital. We'll have an update for you.

And John Kerry's campaign posts the senator's war record for everyone to see and invites a comparison.

And nearly 85,000 people are waiting for an organ transplant. We'll get a personal look at this life and death issue.

This is DAYBREAK for Thursday, April 22.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:13 Eastern.

Here's what's all new this morning.

Among the dead, 17 schoolchildren.

What a homecoming. This is Fort Hood, Texas, where some troops from the 4th Infantry Division arrived home Wednesday from Iraq. More soldiers are returning today. We're going to take you there live in the next hour of DAYBREAK.

Funerals for some of the 73 victims from five suicide bombers in Basra are being held today. Among the dead, 17 schoolchildren.

In money news, American and United Airlines have agreed to reduce flights at Chicago's O'Hare Airport this summer. The two and a half percent cutback is aimed at reducing flight delays and congestion.

In sports, Hubie Brown has been named NBA Coach of the Year. Brown, the oldest coach in the league -- he's 70 -- led the Memphis Grizzlies to their first play-off appearance.

In culture, CBS' "48 Hours" aired never before seen photos last night of Princess Diana from her fatal 1997 Paris car wreck. British tabloids are outraged. The program interviewed a witness to her autopsy who says she was not pregnant -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: All right, those are the latest headlines.

Thank you, Chad.

A group of Republican and Democratic senators have joined forces to fight the drug war -- but not the one involving police. This battle is over the high cost of prescription drugs and the senators have proposed a law that would allow cheaper medicine to be imported.

Our Peter Viles looks at this issue.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT: Two bottles of Lipitor made at the same factory in Ireland.

SEN. BYRON DORGAN (D), NORTH DAKOTA: Sent to Canada, sent to the United States, $1.01 per tablet in Canada, $1.81 per tablet in the United States. That is typical of what you find.

VILES: That 80 percent difference is why Congress is trying again to give American consumers access to cheap drugs from Canada and other countries.

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: We know it will be opposed by the drug companies. It will be opposed by the Bush administration. But it will be welcomed by someone else, by every family in every community in America who needs to fill a prescription.

SEN. JOHN MCCAIN (R), ARIZONA: Last night, thousands of seniors in my state and millions of seniors all over America went to bed making a choice between eating or taking a prescription drug. They couldn't afford both. VILES: The FDA has long opposed reimportation of prescription drugs,, saying it can't guarantee that most foreign-made drugs are safe. But the Senate bill sponsored by Byron Dorgan would give the FDA the money and the responsibility to ensure the safety of the drugs. The issue pits two huge lobbying groups against each other. The powerful pharmaceutical lobby argues flooding America with cheap drugs will stifle research and development of new drugs.

ALAN HOLMER, CEO, PHARMA: For us to import price controls in the United States, the net result of that is going to be to create a disincentive against pharmaceutical research. And that's not what we want on behalf of America's patients and families.

VILES: But the lobby for senior citizens disagrees.

(BEGIN VIDEO CLIP, AD)

NARRATOR: That's why AARP is fighting to speed generics to market and legalize the safe importation of drugs from Canada. It's a drug war we can win.

(END VIDEO CLIP)

(END VIDEOTAPE)

COSTELLO: Wall Street is set to open higher this morning. So, let's see what's going on in the European markets.

For that, we head live to London and Jim Boulden -- good morning, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Hi.

Good morning.

I thought I'd start with pharmaceuticals here, as well, because it is really the biggest story out of Europe. Many pharmaceutical companies here make the vast majority of their money in the United States and that's why we're seeing a lot of action here, a lot of consolidation, because these companies know that they may not be on the U.S. gravy train for much longer.

A big deal here out of today. Aventis is out of France. It is in a hostile takeover bid with Sanofia. Sanofia wants to take over Aventis, but the Swiss pharmaceutical giant Novartis has stepped in and said that it might take over Aventis. They're in friendly talks now. And that's really important because it has become a very messy deal here in the -- in Europe because the French and the German governments are getting involved. But Aventis shareholders are very happy to hear that they might be getting taken over from Novartis. So shares here in Aventis yup four percent.

This is helping the markets, indeed. And if Novartis and Aventis do merge, it'll create the second largest drugs company in the world.

Another look here at the SAP. They say that they're finally getting their act together in the U.S. This is Europe's largest software firm and it's had some trouble as of late. But finally SAP says that first quarter sales, first orders are up and, indeed, it is doing better in the U.S. However, shareholders taking a bit of profit taking here.

Now, Ericsson and Alcatel, two big telecommunication companies doing very well because of Qualcom out of the U.S. coming up with stellar numbers.

A quick look at your markets here. I have to say there hasn't been much action at all. I think it's a bit of a Greenspan hangover -- back to you.

COSTELLO: All right, Jim Boulden live from London this morning.

There's a lot of talk about reinstating the military draft. Later on DAYBREAK, the possibility of it happening and the controversy associated with it.

And what John Kerry's military record reveals about the senator during the Vietnam era.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Earth Day activities dominates the day runners of both presidential candidates. President Bush speaks at a national research reserve in Wells, Maine and visits the Little River salt marsh there. Then he flies back to Washington for the president's environmental youth awards ceremony at the White House.

Senator John Kerry speaks at an Earth Day rally at the University of Houston this afternoon and he attends a fundraising reception tonight in Houston.

Republican critics wanted Kerry to reveal more about his military service, Vietnam in particular. Kerry's campaign has accommodated them, hoping to quell any controversy about his record.

More now from CNN national correspondent Kelly Wallace.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN CORRESPONDENT (voice-over): On the campaign Web site more than 100 pages of documents which Kerry's advisers say put to rest any questions about whether Kerry deserved three Purple Hearts for his Vietnam service.

UNIDENTIFIED MALE: John Kerry has a record in the military that he's running on not running from.

WALLACE: A Purple Heart, military experts say, is awarded to a soldier wounded by enemy fire. The documents provide details of the injuries which earned Kerry his second and third Purple Hearts. Shrapnel wounds when he came under fire, more shrapnel wounds and contusions when a mine detonated in another incident.

But regarding his first Purple Heart, Kerry's military records don't specify his injuries or how he was wounded. His former commanding officer told the Boston Globe he had questioned whether Kerry's boat had taken enemy fire.

The campaign showed CNN what it called a sick call treatment record from Kerry's personal files describing a shrapnel wound to his left arm.

KERRY: Those of us who were there know what happened. It hasn't been questioned in 35 years. Obviously in presidential races politics are politics and I understand that but I'm proud of my service.

WALLACE: The documents are filled with praise one superior saying in combat Kerry was unsurpassed. He was awarded the Bronze Star for saving a fellow soldier's life and the Silver Star, one of the highest honors for battle.

(on camera): And when he came home, he protested the war. Thursday marks 33 years since he spoke out before the Senate Foreign Relations Committee, actions that angered many of the same Vietnam veterans who are most vigorously questioning the awards Kerry received.

Kelly Wallace, CNN, New York.

(END VIDEOTAPE)

COSTELLO: And here's one more story to consider heading towards election day. Many state have spent or plan to spend billions of dollars on electronic voting machines. But California officials might say buyer beware. The state is considering disciplinary action against Diebold Elections Systems. And that could include fines or a ban. The secretary of state's office in California accuses Diebold of computer glitches, late software fixes and poor service that jeopardized the outcome of a March election.

You can read about anything that affects the 2004 elections by going to our Web site. The address, cnn.com/allpolitics.

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

(BEGIN VIDEO CLIP)

BANDAR: It's a total war with them now and there will be no compromises and no give up. We're not going to give up on them.

(END VIDEO CLIP)

COSTELLO: Terrorists strike a dramatic blow against Saudi Arabia's security forces. We'll get an inside look at terror in a live report.

Seen but not heard -- why a message by Vice President Dick Cheney to the Chinese people may not have reached its intended audience. We'll have that live from Hong Kong.

And Big Brother is watching. It's one of the latest intelligence weapons in the war on terror. We'll go behind closed doors for an exclusive look at the agency that keeps an eye on the enemy.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: A day after suicide bombers killed dozens in Basra, the funerals begin today.

It is Thursday, April 22.

This is DAYBREAK.

And good morning to you.

Welcome to the second half hour of DAYBREAK.

It is Thursday, April 22.

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

Let me bring you up to date right now.

Sixteen thousand soldiers of the 4th Infantry Division, Task Force Iron Horse, have returned to Fort Hood, Texas after one year in Iraq. The deployment cost the 4th Division 79 soldiers. They were killed in action.

Israeli troops demolish several houses today during an incursion into the southern Gaza Strip. Witnesses say at least 10 homes were destroyed in one town and a three story building was blown up in another.

Key witness Michael Fortier faces more cross-examination today in the Terry Nichols murder trial in Oklahoma. Fortier is a former Army buddy of Nichols who was charged with murder in the 1995 Oklahoma City bombing.

Now to the forecast center and Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

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Aired April 22, 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: Home from Iraq -- Fort Hood celebrates the return of more of its troops.
It is Thursday, April 22.

This is DAYBREAK.

Good morning to you.

From the CNN global headquarters in Atlanta, this is DAYBREAK for Thursday, April 22.

I'm Carol Costello.

Here are the latest headlines right now.

A heartfelt homecoming for 4th Infantry Division soldiers at Fort Hood, Texas today. An estimated 50,000 people will be at the base to cheer more troops returning from Iraq.

Terrorism in Turkey -- a bomb explodes under a bridge in Istanbul, damaging a bus carrying Turkish military officers. No one was hurt.

A group allied with al Qaeda claims responsibility for a bombing in Saudi Arabia and vows more attacks. Four people killed, 148 others wounded.

The death toll doubles in Illinois. Eight people die in the tornadoes that swept through Utica, Illinois. All the bodies were pulled from the rubble of a tavern. No other people are missing this morning.

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

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

That was officially called an F3 tornado, somewhere between 150 and almost 200 miles per hour. The one that hit Joliet an F1 tornado, over 100 miles per hour, but certainly not the size or the width of that one that was in central and western Illinois.

(WEATHER REPORT)

COSTELLO: The chairman of the joint chiefs says the Iraq war will run over budget by as much as $4 billion by late summer and more billions of dollars will be needed after that. But President Bush is promising the U.S. will not cut and run from Iraq as long as he is in the Oval Office.

CNN's John King has more for you from the White House.

(BEGIN VIDEOTAPE)

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT (voice-over): Outlining the stakes in Iraq to newspaper editors a promise that also appeared to be a criticism of his father's choice at the end of the first Gulf War.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The Iraqi people are looking, you know, they're looking at Americans saying are we going to cut and run again? That's what they're thinking as well and we're not going to cut and run if I'm in the Oval Office.

KING: At the moment not cutting and running means increased troop levels in Iraq and a faster pace of operations that is draining money fast, so much so that key members of Congress say the $51 billion budgeted for military operations in Iraq this year will soon run out.

REP. JOHN SPRATT (D), SOUTH CAROLINA: What's the cost of 20,000 more troops?

PAUL WOLFOWITZ, DEPUTY DEFENSE SECRETARY: I can't give you that number right now.

KING: The administration thinks it can get by in Iraq until at least August with existing money but also concedes it might have to reverse course and request billions more in emergency funding before the November election.

WOLFOWITZ: We made predictions and one of them we thought the 1st Armored Division could be coming home now. That prediction turned out to be wrong.

KING: At the editor's event, Mr. Bush said he came to talk policy, not politics but, when asked, the president did take issue with how his Democratic opponent recently defined the threshold for bringing U.S. troops home.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: It was a stable Iraq, not whether or not that's a full democracy. I can't tell you what's it's going to be but a stable Iraq.

KING: Mr. Bush said democracy is essential to keeping Iraq from collapsing into chaos.

BUSH: It's necessary. It's what will change the world, help change the world.

KING: Mr. Bush also said Wednesday's bombing in Saudi Arabia and the recent attack in Madrid are reminders terrorists would like to target the United States again too.

BUSH: Our intelligence is good. It's just never perfect is the problem.

(END VIDEOTAPE)

COSTELLO: Our Web site is the place to go for all the news you need to know on the war in Iraq. The address, cnn.com.

Saudi Arabia's ambassador to the United States denies he knew about Iraq and the war plans there before Secretary of State Colin Powell. Bob Woodward asserts in "Plan of Attack" that the ambassador saw the top secret U.S. war plan two months before the war began and two days before Mr. Powell saw it. Prince Bandar commented after a White House meeting with National Security Advisor Condoleezza Rice.

(BEGIN VIDEO CLIP)

PRINCE BANDAR BIN SULTAN, SAUDI AMBASSADOR TO U.S.: And to be very honest with you, and no B.S. -- I've been in this town too long to know I should not tell you B.S. -- I didn't know about the war actually except one hour before the attack.

(END VIDEO CLIP)

COSTELLO: There you have it. Prince Bandar also denies Woodward's allegation of a secret deal with the White House to drive down gas prices before the November election.

A Santa Barbara County, California grand jury has found enough evidence to send Michael Jackson to trial. Grand jurors have been investigating allegations the pop star molested a young boy.

CNN's Miguel Marquez has more for you.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT: CNN has confirmed that a grand jury hearing evidence against Michael Jackson has reached an indictment. For the past 13 days, 19 residents of Santa Barbara County have been hearing testimony offered by Santa Barbara District Attorney Tom Sneddon against the pop star. Mr. Jackson's attorney, Benjamin Brafman, says in a statement, "Mr. Jackson and his attorneys are confident that after a trial on these charges, Mr. Jackson will be fully exonerated and that the allegations contained in the indictment will be shown to be patently false."

Brafman goes on to say that Mr. Jackson will be back in court on April 30, where he will plead not guilty to these new charges.

It's not clear yet what exact charges have been filed against the pop star.

Miguel Marquez, CNN, Santa Barbara, California.

(END VIDEOTAPE) COSTELLO: And we will talk more about the Jackson indictment with legal analyst Kendall Coffey in our Coffey Talk segment. That happens in the next hour of DAYBREAK.

Two spent nuclear fuel rods are missing in Vermont. That leads our look at Stories Across America this Thursday.

Federal officials are trying to learn how the small but highly radioactive rods got lost. They say it's unlikely the rods were taken out of the Vermont Yankee nuclear plant in Vernon. A nuclear regulatory official says the rods just may be unaccounted for.

The Food and Drug Administration says it won't be stopping any more buses of older Americans who return from Canada with cheaper prescription drugs. The agency admitted yesterday its agents stopped a bus returning to Minnesota last October. The incident was revealed after Senator Mark Dayton of Minnesota complained. Dayton, who is a millionaire, donates his entire Senate salary to pay for those bus trips.

A U.S. House bill could ease the financial strain on National Guard troops and Reservists in Iraq and Afghanistan. The Republican approved bill, approved Wednesday, would allow them to make early withdrawals from their IRS accounts and 401K programs without paying a penalty. But they'll still have to pay income tax on what they take out.

We've got more pictures, weather pictures, you will not believe. Yes it is spring, but it's hard to believe that in Oklahoma, but it's hard to believe that in Oklahoma. This firefighter is not shoveling snow. That would be hail, some of it as big as baseballs. The state was hit for a second straight day Wednesday with severe storms. One highway death is blamed on the weather. Heavy rains also caused problems. This woman was rescued from her car in Oklahoma City when it became stuck in the rising water.

And federal officials plan to inspect tornado damage in north- central Illinois today, including Utica, where eight people were killed.

Our Chris Lawrence has more on the tornado aftermath from Utica.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): From what people could see, the tornado itself lasted seconds.

UNIDENTIFIED FEMALE: It was a matter of that fast.

LAWRENCE: And just like that left years of hard work destroyed.

UNIDENTIFIED MALE: A lifetime gone.

LAWRENCE: Nowhere got hit harder than Utica, Illinois where a local tavern collapsed and crushed eight people inside.

UNIDENTIFIED FEMALE: Everything was just demolished. Nothing was in order. It was just destroyed.

UNIDENTIFIED FEMALE: And those buildings have been there forever. I mean they're over 100 years old.

LAWRENCE: The tornado blasted through homes with so much force it's hard to tell where the inside stops and the outside begins. Some of these trees took decades to grow but seconds to be ripped out by their roots.

A tornado chaser in Utica caught up to the funnel cloud just as it hit town.

UNIDENTIFIED MALE: I've seen tornadoes just as big but never this close.

LAWRENCE: Winds blew the windows out of an elementary school and rows of homes were flattened by strong winds peaking near 200 miles per hour but Utica wasn't the only place hit hard.

In nearby Joliet, twisters damaged dozens of homes and two tornadoes touched down in Indiana. One in Cocomo blew part of the roof off a skating rink sending it flying into the homes next door.

(END VIDEOTAPE)

COSTELLO: What is it like to watch a tornado rip through your community? Find out on "American Morning," when tornado survivor Jeremy Thorsin (ph) talks with Bill and Soledad. Of course, "American Morning" comes your way at 7:00 a.m. Eastern.

All of us probably have relatives who are victims of the prescription drug crisis. Now, some of our elected law makers are going to bat for older Americans forced into a life of drug smuggling.

Fingers point to al Qaeda for the devastating suicide bombing in the Saudi Arabian capital. We'll have an update for you.

And John Kerry's campaign posts the senator's war record for everyone to see and invites a comparison.

And nearly 85,000 people are waiting for an organ transplant. We'll get a personal look at this life and death issue.

This is DAYBREAK for Thursday, April 22.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:13 Eastern.

Here's what's all new this morning.

Among the dead, 17 schoolchildren.

What a homecoming. This is Fort Hood, Texas, where some troops from the 4th Infantry Division arrived home Wednesday from Iraq. More soldiers are returning today. We're going to take you there live in the next hour of DAYBREAK.

Funerals for some of the 73 victims from five suicide bombers in Basra are being held today. Among the dead, 17 schoolchildren.

In money news, American and United Airlines have agreed to reduce flights at Chicago's O'Hare Airport this summer. The two and a half percent cutback is aimed at reducing flight delays and congestion.

In sports, Hubie Brown has been named NBA Coach of the Year. Brown, the oldest coach in the league -- he's 70 -- led the Memphis Grizzlies to their first play-off appearance.

In culture, CBS' "48 Hours" aired never before seen photos last night of Princess Diana from her fatal 1997 Paris car wreck. British tabloids are outraged. The program interviewed a witness to her autopsy who says she was not pregnant -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: All right, those are the latest headlines.

Thank you, Chad.

A group of Republican and Democratic senators have joined forces to fight the drug war -- but not the one involving police. This battle is over the high cost of prescription drugs and the senators have proposed a law that would allow cheaper medicine to be imported.

Our Peter Viles looks at this issue.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT: Two bottles of Lipitor made at the same factory in Ireland.

SEN. BYRON DORGAN (D), NORTH DAKOTA: Sent to Canada, sent to the United States, $1.01 per tablet in Canada, $1.81 per tablet in the United States. That is typical of what you find.

VILES: That 80 percent difference is why Congress is trying again to give American consumers access to cheap drugs from Canada and other countries.

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: We know it will be opposed by the drug companies. It will be opposed by the Bush administration. But it will be welcomed by someone else, by every family in every community in America who needs to fill a prescription.

SEN. JOHN MCCAIN (R), ARIZONA: Last night, thousands of seniors in my state and millions of seniors all over America went to bed making a choice between eating or taking a prescription drug. They couldn't afford both. VILES: The FDA has long opposed reimportation of prescription drugs,, saying it can't guarantee that most foreign-made drugs are safe. But the Senate bill sponsored by Byron Dorgan would give the FDA the money and the responsibility to ensure the safety of the drugs. The issue pits two huge lobbying groups against each other. The powerful pharmaceutical lobby argues flooding America with cheap drugs will stifle research and development of new drugs.

ALAN HOLMER, CEO, PHARMA: For us to import price controls in the United States, the net result of that is going to be to create a disincentive against pharmaceutical research. And that's not what we want on behalf of America's patients and families.

VILES: But the lobby for senior citizens disagrees.

(BEGIN VIDEO CLIP, AD)

NARRATOR: That's why AARP is fighting to speed generics to market and legalize the safe importation of drugs from Canada. It's a drug war we can win.

(END VIDEO CLIP)

(END VIDEOTAPE)

COSTELLO: Wall Street is set to open higher this morning. So, let's see what's going on in the European markets.

For that, we head live to London and Jim Boulden -- good morning, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Hi.

Good morning.

I thought I'd start with pharmaceuticals here, as well, because it is really the biggest story out of Europe. Many pharmaceutical companies here make the vast majority of their money in the United States and that's why we're seeing a lot of action here, a lot of consolidation, because these companies know that they may not be on the U.S. gravy train for much longer.

A big deal here out of today. Aventis is out of France. It is in a hostile takeover bid with Sanofia. Sanofia wants to take over Aventis, but the Swiss pharmaceutical giant Novartis has stepped in and said that it might take over Aventis. They're in friendly talks now. And that's really important because it has become a very messy deal here in the -- in Europe because the French and the German governments are getting involved. But Aventis shareholders are very happy to hear that they might be getting taken over from Novartis. So shares here in Aventis yup four percent.

This is helping the markets, indeed. And if Novartis and Aventis do merge, it'll create the second largest drugs company in the world.

Another look here at the SAP. They say that they're finally getting their act together in the U.S. This is Europe's largest software firm and it's had some trouble as of late. But finally SAP says that first quarter sales, first orders are up and, indeed, it is doing better in the U.S. However, shareholders taking a bit of profit taking here.

Now, Ericsson and Alcatel, two big telecommunication companies doing very well because of Qualcom out of the U.S. coming up with stellar numbers.

A quick look at your markets here. I have to say there hasn't been much action at all. I think it's a bit of a Greenspan hangover -- back to you.

COSTELLO: All right, Jim Boulden live from London this morning.

There's a lot of talk about reinstating the military draft. Later on DAYBREAK, the possibility of it happening and the controversy associated with it.

And what John Kerry's military record reveals about the senator during the Vietnam era.

We'll be right back.

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COSTELLO: Earth Day activities dominates the day runners of both presidential candidates. President Bush speaks at a national research reserve in Wells, Maine and visits the Little River salt marsh there. Then he flies back to Washington for the president's environmental youth awards ceremony at the White House.

Senator John Kerry speaks at an Earth Day rally at the University of Houston this afternoon and he attends a fundraising reception tonight in Houston.

Republican critics wanted Kerry to reveal more about his military service, Vietnam in particular. Kerry's campaign has accommodated them, hoping to quell any controversy about his record.

More now from CNN national correspondent Kelly Wallace.

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KELLY WALLACE, CNN CORRESPONDENT (voice-over): On the campaign Web site more than 100 pages of documents which Kerry's advisers say put to rest any questions about whether Kerry deserved three Purple Hearts for his Vietnam service.

UNIDENTIFIED MALE: John Kerry has a record in the military that he's running on not running from.

WALLACE: A Purple Heart, military experts say, is awarded to a soldier wounded by enemy fire. The documents provide details of the injuries which earned Kerry his second and third Purple Hearts. Shrapnel wounds when he came under fire, more shrapnel wounds and contusions when a mine detonated in another incident.

But regarding his first Purple Heart, Kerry's military records don't specify his injuries or how he was wounded. His former commanding officer told the Boston Globe he had questioned whether Kerry's boat had taken enemy fire.

The campaign showed CNN what it called a sick call treatment record from Kerry's personal files describing a shrapnel wound to his left arm.

KERRY: Those of us who were there know what happened. It hasn't been questioned in 35 years. Obviously in presidential races politics are politics and I understand that but I'm proud of my service.

WALLACE: The documents are filled with praise one superior saying in combat Kerry was unsurpassed. He was awarded the Bronze Star for saving a fellow soldier's life and the Silver Star, one of the highest honors for battle.

(on camera): And when he came home, he protested the war. Thursday marks 33 years since he spoke out before the Senate Foreign Relations Committee, actions that angered many of the same Vietnam veterans who are most vigorously questioning the awards Kerry received.

Kelly Wallace, CNN, New York.

(END VIDEOTAPE)

COSTELLO: And here's one more story to consider heading towards election day. Many state have spent or plan to spend billions of dollars on electronic voting machines. But California officials might say buyer beware. The state is considering disciplinary action against Diebold Elections Systems. And that could include fines or a ban. The secretary of state's office in California accuses Diebold of computer glitches, late software fixes and poor service that jeopardized the outcome of a March election.

You can read about anything that affects the 2004 elections by going to our Web site. The address, cnn.com/allpolitics.

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

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BANDAR: It's a total war with them now and there will be no compromises and no give up. We're not going to give up on them.

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COSTELLO: Terrorists strike a dramatic blow against Saudi Arabia's security forces. We'll get an inside look at terror in a live report.

Seen but not heard -- why a message by Vice President Dick Cheney to the Chinese people may not have reached its intended audience. We'll have that live from Hong Kong.

And Big Brother is watching. It's one of the latest intelligence weapons in the war on terror. We'll go behind closed doors for an exclusive look at the agency that keeps an eye on the enemy.

This is DAYBREAK for Thursday.

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COSTELLO: A day after suicide bombers killed dozens in Basra, the funerals begin today.

It is Thursday, April 22.

This is DAYBREAK.

And good morning to you.

Welcome to the second half hour of DAYBREAK.

It is Thursday, April 22.

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

Let me bring you up to date right now.

Sixteen thousand soldiers of the 4th Infantry Division, Task Force Iron Horse, have returned to Fort Hood, Texas after one year in Iraq. The deployment cost the 4th Division 79 soldiers. They were killed in action.

Israeli troops demolish several houses today during an incursion into the southern Gaza Strip. Witnesses say at least 10 homes were destroyed in one town and a three story building was blown up in another.

Key witness Michael Fortier faces more cross-examination today in the Terry Nichols murder trial in Oklahoma. Fortier is a former Army buddy of Nichols who was charged with murder in the 1995 Oklahoma City bombing.

Now to the forecast center and Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

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