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CNN Live At Daybreak

Explosion Kills Thousands of People on Train in North Korea; Decision to Partially Reverse De-Baathification Policy

Aired April 23, 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: Good morning to you.
From the CNN global headquarters in Atlanta, this is DAYBREAK for Friday. Oh, happy Friday.

It's April 23.

I'm Carol Costello.

Here are the latest headlines for you now.

Reuters quotes the Red Cross as saying 54 people were killed and more than 1,200 injured in that train explosion in North Korea. It also says nearly 2,000 homes were destroyed.

The University of North Dakota will hold a public memorial service next Wednesday for Dru Sjodin, whose body was found last weekend. Her funeral will be held tomorrow in Minnesota.

Less than a month before Scott Peterson goes on trial, the judge has received an anonymous letter claiming that someone else killed Laci Peterson. The judge sealed the letter while it's being investigated.

In the case against Zacarias Moussaoui, a court says the government can introduce evidence of the 9/11 attacks. But it also says he can use written testimony from al Qaeda captives.

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

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Some startling figures to start with. In North Korea, more than 1,800 homes have been destroyed, more than 6,000 damaged. Scores of people are dead and more than 1,000 people have been injured. South Korean officials say a train carrying explosives blew up. It happened near the Chinese border.

Our Jaime FlorCruz is near the scene and he filed this report for you just minutes ago.

(BEGIN VIDEOTAPE)

JAMIE FLORCRUZ, CNN CORRESPONDENT: A major humanitarian disaster in this city behind me, the city of Sinuiju and beyond that, the town of Ryongchon, a town of about 130,000 people just across the border from China, where an explosion is believed to have killed and injured many people. It's still not clear what caused the collision or the explosion. It's also not clear just exactly how many people died or were injured. But what is clear is that North Korea is now coping with a huge humanitarian disaster.

The Chinese have offered help, and also the Red Cross from different parts of the world, including the International Red Cross, have also offered medical assistance.

This is Jaime FlorCruz reporting from Dundojn (ph) on the border with North Korea.

(END VIDEOTAPE)

COSTELLO: In Iraq, the situation in Fallujah remains tense. Lieutenant General James Conway says insurgents have days, not weeks, to turn in their weapons. He said some of the weapons already turned in were junk and he estimates there are about 200 fighters from other countries in Fallujah.

A report in "USA Today" says the coalition is recruiting Iraqis for a volunteer unit that would battle insurgents. And the man who led the troops into Iraq, retired General Tommy Franks, says the recent increase in insurgency could be an effort to influence the upcoming presidential election. He says attacks could become more frequent as the election nears.

The White House is adjusting its post-war policy regarding top members of Saddam Hussein's Baath Party. Now they're going to be allowed to serve in the Iraqi government and in military posts.

Live now to Baghdad for more on this and from our Jim Clancy -- and, Jim, tell us first what this term de-Baathification means.

JIM CLANCY, CNN CORRESPONDENT: Well, literally when the coalition came in here, all of the members of the Baath Party were purged from the ranks not only in the army -- the entire army was dismissed -- also, plant managers, even teachers that were members of the Baath Party told they couldn't return to their jobs. And a lot of people have argued that this did two things. Number one, it deprived Iraqis of some of their best trained people. Number two, it alienated the Sunni minority that held so much power under Saddam Hussein. They argue that membership in the Baath Party was nominal in many cases.

I think now a lot of people are looking at this and saying -- and not to make a pun here -- that what the coalition did when it arrived was to throw out the baby with the bath water.

COSTELLO: So -- oh, I'm sorry, Jim.

Why reverse the -- or modify this policy now? Why now?

CLANCY: Well, I think there's been a lot of lessons that have been learned over the course of the last couple of weeks, Carol. And that includes the situation that you have in Fallujah. What was seen was, number one, that Iraqi troops were not following the commands of Iraq -- of American officers. That was very clear to everybody. They estimate about 50 percent of that force either melted away or actually aided the insurgents. In some cases in Fallujah, they were seen campaigning with the people. In the south, as well, they were seen to walk in the ranks of Muqtada al-Sadr's Al-Mahdi Army and to do joint patrols with them.

In effect, what they were doing was preserving their own safety by leaving these people alone, just, you know, not even upholding law and order, just saying we won't bother you as long as you don't bother us. No attacks against Iraqi police will leave us safe, we won't feel so vulnerable and you can do whatever you want.

In this kind of a situation, the U.S. has to take some action. They are now coming around to the idea that the Iraqis have to have a bigger say in all of this, need to be included, need to help bring discipline back into this army and credibility -- Carol.

COSTELLO: Jim Clancy live in Baghdad this morning.

Senator Joe Lieberman will talk about all of this with Bill and Soledad on "American Morning." That begins, of course, at 7:00 Eastern.

In the war on terror, there's an update in the case of Zacarias Moussaoui, the only person charged in connection to the 9/11 attacks. For a while there, it looked as though the case against him had been derailed.

But as CNN justice correspondent Kelli Arena reports, a new court ruling seems to have changed that.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN CORRESPONDENT (voice-over): The government's case against Zacarias Moussaoui is still on track. The appeals court ruled to lift sanctions imposed by the trial judge that would have prevented Moussaoui from facing the death penalty and would have kept all evidence regarding September 11 out of court.

But the appeals panel also said Moussaoui has the right to introduce testimony from these three top al Qaeda operatives, who he says can help clear him.

FRANK DUNHAM, MOUSSAOUI ATTORNEY: You can't underestimate the importance of a witness upon whose testimony the death penalty may ride. Moussaoui's life in a death penalty case, we have argued, would rest upon the testimony of these witnesses.

ARENA: The government argued Moussaoui is not entitled to access to the detainees because they are in military custody outside the United States. Prosecutors offered written summaries of their interrogations instead. Moussaoui's defense attorneys balked. So did the judge, Leonie Brinkema, ruling there could be no adequate substitute for live witness testimony. But the appeals court disagreed and sent the case back to Brinkema so she could work out a compromise.

JAYNE WEINTRAUB, ATTORNEY: What they've done is said basically well, yes, you're entitled to present mitigating evidence, you're entitled to show some part of the defense by introducing mitigation from witnesses outside the United States that you maintain are al Qaeda witnesses. However, we're not going to let you have the right of confrontation.

ARENA (on camera): Even though Moussaoui's lawyers call the ruling a positive step and a win-win, the government is studying the ruling and says it's pleased its core position was upheld.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Government and law enforcement officials say they are highly concerned about the possibility of a terrorist attack in the United States in the coming months. Officials say terrorists have been known to seek out symbolic targets and the upcoming political conventions in New York and Boston, as well as the g8 summit here in Georgia, could provide opportunities.

(BEGIN VIDEO CLIP)

JOHN ASHCROFT, ATTORNEY GENERAL: We believe that the terrorists are interested in the United States and in injuring American citizens and disrupting American freedom. And we are operating day and night to do whatever we can to disrupt terrorist activity, not only abroad, but here in the United States.

(END VIDEO CLIP)

COSTELLO: Well, having said all of that, this is pretty comforting. The House has passed a so-called Doomsday Bill. It would require special elections within 45 days if more than 100 House members are killed in a terrorist attack. The bill now goes to the Senate. Senators have been discussing a proposal for a constitutional amendment possibly allowing governors or state legislatures to appoint successors more quickly.

A reporting scandal at "USA Today" claims another top editor.

That leads our look at stories across America this Friday.

High alert Ritter, the paper's managing editor of news, has resigned. On Tuesday, Karen Jurgensen, the paper's top editor, resigned over the scandal. At the heart of it, former star reporter Jack Kelley. An investigation by the paper discovered that Kelley fabricated some stories. A report by an independent panel of journalists blames top editors at "USA Today."

One hundred thirty-five years in prison is a long time. The man in the orange prison suit with the white beard and glasses is 58-year- old Malachi York, leader of the United Nuwabian Nations of Moors. He's now been sentenced to 135 years for molesting boys and girls at his cult compound in Georgia's Putnam County.

A woman allegedly raped by a University of Colorado football player in 2001 says she did not press charges because she felt intimidated by Coach Gary Barnett. The claim was in an affidavit given to investigators looking into sexual misconduct in the school's football program.

A wake will be held in Minnesota today for college student Dru Sjodin, with funeral services scheduled for Saturday. Sjodin's body was found last Saturday, nearly five months after she was abducted from a North Dakota mall parking lot.

Family members appeared on CNN's "Larry King Live."

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

SVEN SJODIN, DRU SJODIN'S BROTHER: You know, I'd say we're all doing very well. They're doing very well for the circumstances. You know, we have a great strength amongst our families. You know, we've been given strength from above and we think -- we just thank god that she's not lost anymore. You know, we know where she is now so that's, it's a slight peace, but also disturbing in the same.

(END VIDEO CLIP)

COSTELLO: The funeral home in charge of burial arrangements has received more than 1,000 messages from Sjodin's family through a Web link attached to her obituary.

Home from Iraq, but no welcome home. Japanese citizens held hostage in Iraq are threatened with execution when they returned home to their nation's fury and scorn.

Atika Shubert joins us live from Tokyo to explain why this is happening.

News cameras cover the horror of war, but the military doesn't want you to see the ultimate price many Americans have paid.

And Earth Day awards celebrate personal sacrifice and struggle to do the right thing.

And pop a top -- the nation's largest beer makers invites all dieters to belly up to the bar.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:15 Eastern.

Here's what's all new this morning.

A deadly train blast in North Korea. Reuters News Agency quotes Red Cross officials as saying 54 people were killed, more than 1,000 injured, but there may be many more dead.

Newly released documents show the FBI has questioned more than 3,000 pilots and owners of crop dusting planes. It comes amid fears the planes could be used in chemical or biological attacks.

In money news, a former Healthsouth executive pleads guilty to fraud. Vincent Nico was accused of conspiring to receive kickbacks of $125,000 a year from a Saudi businessman.

In sports, the NFL draft is this weekend. The San Diego Chargers get tomorrow's first pick. Mississippi quarterback Eli Manning is among those considered a top choice. You might -- and he is number one.

In culture, kicking off today for a 10 day run, the New Orleans Jazz Festival -- 12 stages, two large food areas, arts, crafts, rhythm and blues, Cajun, Zydeco. What more could you want, Chad?

MYERS: Crawdads!

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

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

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

JIM BOULDEN, CNN CORRESPONDENT: Hi.

Good morning, Carol.

I want to say to any DaimlerChrysler shareholders out there to wake up and rub your eyes, look closely at the television screen, because I've got a really nice Friday morning present for you. DaimlerChrysler's shares up seven and a half percent this morning. They had been as high as nine percent higher. That's because DaimlerChrysler has said that it is sick and tired of Mitsubishi. That's its subsidiary in Japan that it has pumped a lot of money into. The DaimlerChrysler and other shareholders were discussing a $6 billion injection into Mitsubishi. Daimler says enough, we're not going to put any more money into that troubled Japanese auto maker. In fact, we're probably going to sell our stake in that company.

And as you can see, that has helped DaimlerChrysler's shares do very well. Of course, the troubled merger between Daimler and Chrysler has hurt shareholders in the U.S. a great deal. But this morning, a bit of a fill up here for all of you.

Also, DaimlerChrysler helping the main markets, as well. You can see the DAX here up almost one and a half percent. Daimler is a very big part of that index.

London doing well, Switzerland. Switzerland and France doing well. All of these doing very well because of Wall Street's high close yesterday. And the DAX, again, doing the best out of all of these.

Now, a quick look at currencies. The dollar has lost a bit of ground against the euro. Of course, it's done very well this week against the euro and the pound because of the thought that interest rates will rise in the U.S. come August or so. But some mixed numbers out of London today. Retail sales doing very well, indeed, out of U.K., which some people think that might mean that interest rates will also rise here. So a bit of U.S. money going back into the pound.

Now, Carol, before we go, I just want to say Happy Saint George's Day to you. Not many people know it, but he is the patron saint of England. But he doesn't get nearly as much recognition, of course, as Saint Patrick out of Ireland.

COSTELLO: Do they do anything like drink green beer on Saint George's Day?

BOULDEN: Well, of course, here you have things like brown ale. New Castle brown ale is what you drink, I think, here. You know, English beer is very, very popular and there's many of them. But some of them, I have to say, aren't very drinkable.

COSTELLO: Well, the green beer here isn't either. And I'm sure they don't drink green beer in Ireland on Saint Patrick's Day. I have been told that by a very good source.

BOULDEN: No, they all -- no.

COSTELLO: Thank you, Jim.

We appreciate it.

BOULDEN: They all go to the U.S., yes.

COSTELLO: To get that delicious green beer.

Thank you, Jim.

Wait until you hear this story. The Japanese civilians who were held hostage in Iraq, you know they're free and they're back home in Japan. But they are hardly getting a warm welcome. To the contrary. The public is angry at them and the government is actually billing them $6,000 for their air fare back to Japan.

Details now live from Atika Shubert in Tokyo -- Atika, this just seems mean.

ATIKA SHUBERT, CNN CORRESPONDENT: It's certainly not a warm welcome at all, by any means. In effect, the hostages are being blamed for their own kidnapping. And we've certainly seen the stress that it's putting on the hostages. When they first arrived back in Japan, they were literally doubled over bowing in apology, hoping to put this ordeal behind them. But the debate still continues. Just to give you an idea of some of the disapproval and really harassment that they're getting, letters from the public calling them the shame of the nation; tabloids looking into their private lives; some even suggesting that they staged the kidnapping themselves; and then politicians saying they should be billed for the expense of getting them out of Iraq.

So certainly not a warm welcome at all -- Carol.

COSTELLO: But, Atika, one of the people taken hostages, she was helping like poor, hungry Iraqi children there. There was a journalist there. I mean it seemed like they were trying to do good things in Iraq.

SHUBERT: That's right. It seems almost contrary and counter- intuitive, but people here say they felt that the family members were demanding too much of the government, that they were demanding that, if necessary, troops be withdrawn. And essentially it was, for many people we spoke to on the street, said it was too much. And for that reason, the backlash against the hostages.

Effectively what's happened is the hostages have stepped into this debate that's divided the nation -- what should the nation do? Should it -- should Japan support U.S. troops in Iraq? Should Japan send its own troops to Iraq? And the hostages, unfortunately, have been caught in the middle.

COSTELLO: Well, you know, what's really confusing? During the time they were held hostage -- and we all saw those really terrifying pictures with the knives under their throats -- it seemed like the people of Japan were on their side. They were very emotional. You could see them watching television and asking for a safe return.

What was that all about then?

SHUBERT: Well, certainly people were very shocked and angry when they first saw those pictures of the hostages being held at gunpoint. But then when the news of a release became imminent, suddenly the tables started to turn.

There were rumors that perhaps there was something fishy about the hostage taking, rumors that perhaps it was staged. All of this filtering around. And, also, it really steps in that people were angry that the hostages -- the hostage families appeared to be asking a lot, asking that, if necessary, the troops be withdrawn. And this really, again, gets to the heart of the debate here. About 50 percent of the people believe that Japanese troops should stay in Iraq and another 50 feel that they should be pulled out. And both sides were using the hostage case to their disadvantage. And unfortunately it's just put extra stress and pressure on what's already been an agonizing ordeal for the hostages.

COSTELLO: Atika Shubert live from Tokyo this morning.

Armed and dangerous to prevent the unthinkable from happening again. Hundreds of commercial pilots get ready to lock and load. And a covert attempt at Bush bashing. We'll tell you why a few choice words proved prosperous for an unsuspecting business owner.

(COMMERCIAL BREAK)

COSTELLO: I don't believe this study. I don't believe it.

MYERS: You don't?

COSTELLO: This is a study by Cornell's Institute for Health and Productivity.

MYERS: Yes.

COSTELLO: And it says that workers who come in sick cost their employers mega dollars.

MYERS: You should stay home when you're sick, it says.

COSTELLO: It says that, specifically, "Workers who come in sick cost their employers an average $255 each per year. Sick employees have difficulty concentrating, work more slowly, have to repeat tasks, bogging down productivity." And, of course, they make their other follow employees sick. I always come into work sick.

MYERS: They make their employees sick. They make other people sick. That's the problem. Because how can you be less productive if you're in the building than home? If you're home, you're not productive at all. But -- I am a germophobe. You should see the office. I've got this little Purelle hand thing here. People come in sick all the time, touch all the computer mouses, the keyboards. It's like go home. You're sick.

COSTELLO: I always come in when I'm sick.

MYERS: Well, go home.

COSTELLO: I feel guilty. I feel guilty if I don't come in, because someone else would have to work this awful shift.

MYERS: And down here in the South, and probably up in the North, now, too, because it's warming up, people can't tell if they're sick or not because there's so much pollen in the air. You can't tell whether you're head is stuffed up or not.

COSTELLO: See? That's another thing.

MYERS: I know.

COSTELLO: And by the time you get really sick, you probably are at work. You don't know that you're getting sick and you've already infected people. So I don't see how this study -- does it take everything into account, I wonder?

MYERS: I think it's just a little study.

COSTELLO: I think so, too.

MYERS: It probably costs millions of dollars but it's just a little study.

COSTELLO: All right, well, here's another question for you. How close do you look at those bilingual washing instruction labels? Boy, I bet you study those.

MYERS: Yes.

COSTELLO: That tops our DAYBREAK Eye-Opener.

A mystery. The bags sold by designer Tom Bihn in Seattle are getting a lot of attention for their labels. The instructions in French read, "We are sorry that our president is an idiot. We didn't vote for him." The designer says he doesn't know who came up with that label, but business is doing really good because of it. Hmmm.

In Florida, the North Miami Police Department is dropping a requirement that new police officers take a swimming test. The police chief, who's African-American, says part of the reason for dropping the requirement is to recruit black police officers. She says the requirement discouraged some African-Americans. That doesn't make sense to me.

MYERS: Well, that's (UNINTELLIGIBLE).

COSTELLO: And check out this cat. Talk about lost. This is Cheyenne, adopted by a woman in Bradenton, Florida in 1997. Shortly after the adoption, Cheyenne disappeared. Well, she was found this month all the way in San Francisco. The implanted computer chip in her body confirmed the cross country cat's identity. No one knows how the heck she got from Florida...

MYERS: I left my cat in San Francisco.

COSTELLO: In San Francisco.

We'll be right back.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: Restaurant chains typically build their menus on a type of food, say, Mexican or Chinese. But what about a restaurant focused on dessert?

The Cheesecake Factory has 75 locations based on the namesake dessert for which it offers over 40 varieties. And according to a recent restaurant publication, The Cheesecake Factory has the highest sales per store of any restaurant chain in the country.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired April 23, 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: Good morning to you.
From the CNN global headquarters in Atlanta, this is DAYBREAK for Friday. Oh, happy Friday.

It's April 23.

I'm Carol Costello.

Here are the latest headlines for you now.

Reuters quotes the Red Cross as saying 54 people were killed and more than 1,200 injured in that train explosion in North Korea. It also says nearly 2,000 homes were destroyed.

The University of North Dakota will hold a public memorial service next Wednesday for Dru Sjodin, whose body was found last weekend. Her funeral will be held tomorrow in Minnesota.

Less than a month before Scott Peterson goes on trial, the judge has received an anonymous letter claiming that someone else killed Laci Peterson. The judge sealed the letter while it's being investigated.

In the case against Zacarias Moussaoui, a court says the government can introduce evidence of the 9/11 attacks. But it also says he can use written testimony from al Qaeda captives.

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

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Some startling figures to start with. In North Korea, more than 1,800 homes have been destroyed, more than 6,000 damaged. Scores of people are dead and more than 1,000 people have been injured. South Korean officials say a train carrying explosives blew up. It happened near the Chinese border.

Our Jaime FlorCruz is near the scene and he filed this report for you just minutes ago.

(BEGIN VIDEOTAPE)

JAMIE FLORCRUZ, CNN CORRESPONDENT: A major humanitarian disaster in this city behind me, the city of Sinuiju and beyond that, the town of Ryongchon, a town of about 130,000 people just across the border from China, where an explosion is believed to have killed and injured many people. It's still not clear what caused the collision or the explosion. It's also not clear just exactly how many people died or were injured. But what is clear is that North Korea is now coping with a huge humanitarian disaster.

The Chinese have offered help, and also the Red Cross from different parts of the world, including the International Red Cross, have also offered medical assistance.

This is Jaime FlorCruz reporting from Dundojn (ph) on the border with North Korea.

(END VIDEOTAPE)

COSTELLO: In Iraq, the situation in Fallujah remains tense. Lieutenant General James Conway says insurgents have days, not weeks, to turn in their weapons. He said some of the weapons already turned in were junk and he estimates there are about 200 fighters from other countries in Fallujah.

A report in "USA Today" says the coalition is recruiting Iraqis for a volunteer unit that would battle insurgents. And the man who led the troops into Iraq, retired General Tommy Franks, says the recent increase in insurgency could be an effort to influence the upcoming presidential election. He says attacks could become more frequent as the election nears.

The White House is adjusting its post-war policy regarding top members of Saddam Hussein's Baath Party. Now they're going to be allowed to serve in the Iraqi government and in military posts.

Live now to Baghdad for more on this and from our Jim Clancy -- and, Jim, tell us first what this term de-Baathification means.

JIM CLANCY, CNN CORRESPONDENT: Well, literally when the coalition came in here, all of the members of the Baath Party were purged from the ranks not only in the army -- the entire army was dismissed -- also, plant managers, even teachers that were members of the Baath Party told they couldn't return to their jobs. And a lot of people have argued that this did two things. Number one, it deprived Iraqis of some of their best trained people. Number two, it alienated the Sunni minority that held so much power under Saddam Hussein. They argue that membership in the Baath Party was nominal in many cases.

I think now a lot of people are looking at this and saying -- and not to make a pun here -- that what the coalition did when it arrived was to throw out the baby with the bath water.

COSTELLO: So -- oh, I'm sorry, Jim.

Why reverse the -- or modify this policy now? Why now?

CLANCY: Well, I think there's been a lot of lessons that have been learned over the course of the last couple of weeks, Carol. And that includes the situation that you have in Fallujah. What was seen was, number one, that Iraqi troops were not following the commands of Iraq -- of American officers. That was very clear to everybody. They estimate about 50 percent of that force either melted away or actually aided the insurgents. In some cases in Fallujah, they were seen campaigning with the people. In the south, as well, they were seen to walk in the ranks of Muqtada al-Sadr's Al-Mahdi Army and to do joint patrols with them.

In effect, what they were doing was preserving their own safety by leaving these people alone, just, you know, not even upholding law and order, just saying we won't bother you as long as you don't bother us. No attacks against Iraqi police will leave us safe, we won't feel so vulnerable and you can do whatever you want.

In this kind of a situation, the U.S. has to take some action. They are now coming around to the idea that the Iraqis have to have a bigger say in all of this, need to be included, need to help bring discipline back into this army and credibility -- Carol.

COSTELLO: Jim Clancy live in Baghdad this morning.

Senator Joe Lieberman will talk about all of this with Bill and Soledad on "American Morning." That begins, of course, at 7:00 Eastern.

In the war on terror, there's an update in the case of Zacarias Moussaoui, the only person charged in connection to the 9/11 attacks. For a while there, it looked as though the case against him had been derailed.

But as CNN justice correspondent Kelli Arena reports, a new court ruling seems to have changed that.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN CORRESPONDENT (voice-over): The government's case against Zacarias Moussaoui is still on track. The appeals court ruled to lift sanctions imposed by the trial judge that would have prevented Moussaoui from facing the death penalty and would have kept all evidence regarding September 11 out of court.

But the appeals panel also said Moussaoui has the right to introduce testimony from these three top al Qaeda operatives, who he says can help clear him.

FRANK DUNHAM, MOUSSAOUI ATTORNEY: You can't underestimate the importance of a witness upon whose testimony the death penalty may ride. Moussaoui's life in a death penalty case, we have argued, would rest upon the testimony of these witnesses.

ARENA: The government argued Moussaoui is not entitled to access to the detainees because they are in military custody outside the United States. Prosecutors offered written summaries of their interrogations instead. Moussaoui's defense attorneys balked. So did the judge, Leonie Brinkema, ruling there could be no adequate substitute for live witness testimony. But the appeals court disagreed and sent the case back to Brinkema so she could work out a compromise.

JAYNE WEINTRAUB, ATTORNEY: What they've done is said basically well, yes, you're entitled to present mitigating evidence, you're entitled to show some part of the defense by introducing mitigation from witnesses outside the United States that you maintain are al Qaeda witnesses. However, we're not going to let you have the right of confrontation.

ARENA (on camera): Even though Moussaoui's lawyers call the ruling a positive step and a win-win, the government is studying the ruling and says it's pleased its core position was upheld.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Government and law enforcement officials say they are highly concerned about the possibility of a terrorist attack in the United States in the coming months. Officials say terrorists have been known to seek out symbolic targets and the upcoming political conventions in New York and Boston, as well as the g8 summit here in Georgia, could provide opportunities.

(BEGIN VIDEO CLIP)

JOHN ASHCROFT, ATTORNEY GENERAL: We believe that the terrorists are interested in the United States and in injuring American citizens and disrupting American freedom. And we are operating day and night to do whatever we can to disrupt terrorist activity, not only abroad, but here in the United States.

(END VIDEO CLIP)

COSTELLO: Well, having said all of that, this is pretty comforting. The House has passed a so-called Doomsday Bill. It would require special elections within 45 days if more than 100 House members are killed in a terrorist attack. The bill now goes to the Senate. Senators have been discussing a proposal for a constitutional amendment possibly allowing governors or state legislatures to appoint successors more quickly.

A reporting scandal at "USA Today" claims another top editor.

That leads our look at stories across America this Friday.

High alert Ritter, the paper's managing editor of news, has resigned. On Tuesday, Karen Jurgensen, the paper's top editor, resigned over the scandal. At the heart of it, former star reporter Jack Kelley. An investigation by the paper discovered that Kelley fabricated some stories. A report by an independent panel of journalists blames top editors at "USA Today."

One hundred thirty-five years in prison is a long time. The man in the orange prison suit with the white beard and glasses is 58-year- old Malachi York, leader of the United Nuwabian Nations of Moors. He's now been sentenced to 135 years for molesting boys and girls at his cult compound in Georgia's Putnam County.

A woman allegedly raped by a University of Colorado football player in 2001 says she did not press charges because she felt intimidated by Coach Gary Barnett. The claim was in an affidavit given to investigators looking into sexual misconduct in the school's football program.

A wake will be held in Minnesota today for college student Dru Sjodin, with funeral services scheduled for Saturday. Sjodin's body was found last Saturday, nearly five months after she was abducted from a North Dakota mall parking lot.

Family members appeared on CNN's "Larry King Live."

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

SVEN SJODIN, DRU SJODIN'S BROTHER: You know, I'd say we're all doing very well. They're doing very well for the circumstances. You know, we have a great strength amongst our families. You know, we've been given strength from above and we think -- we just thank god that she's not lost anymore. You know, we know where she is now so that's, it's a slight peace, but also disturbing in the same.

(END VIDEO CLIP)

COSTELLO: The funeral home in charge of burial arrangements has received more than 1,000 messages from Sjodin's family through a Web link attached to her obituary.

Home from Iraq, but no welcome home. Japanese citizens held hostage in Iraq are threatened with execution when they returned home to their nation's fury and scorn.

Atika Shubert joins us live from Tokyo to explain why this is happening.

News cameras cover the horror of war, but the military doesn't want you to see the ultimate price many Americans have paid.

And Earth Day awards celebrate personal sacrifice and struggle to do the right thing.

And pop a top -- the nation's largest beer makers invites all dieters to belly up to the bar.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:15 Eastern.

Here's what's all new this morning.

A deadly train blast in North Korea. Reuters News Agency quotes Red Cross officials as saying 54 people were killed, more than 1,000 injured, but there may be many more dead.

Newly released documents show the FBI has questioned more than 3,000 pilots and owners of crop dusting planes. It comes amid fears the planes could be used in chemical or biological attacks.

In money news, a former Healthsouth executive pleads guilty to fraud. Vincent Nico was accused of conspiring to receive kickbacks of $125,000 a year from a Saudi businessman.

In sports, the NFL draft is this weekend. The San Diego Chargers get tomorrow's first pick. Mississippi quarterback Eli Manning is among those considered a top choice. You might -- and he is number one.

In culture, kicking off today for a 10 day run, the New Orleans Jazz Festival -- 12 stages, two large food areas, arts, crafts, rhythm and blues, Cajun, Zydeco. What more could you want, Chad?

MYERS: Crawdads!

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

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

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

JIM BOULDEN, CNN CORRESPONDENT: Hi.

Good morning, Carol.

I want to say to any DaimlerChrysler shareholders out there to wake up and rub your eyes, look closely at the television screen, because I've got a really nice Friday morning present for you. DaimlerChrysler's shares up seven and a half percent this morning. They had been as high as nine percent higher. That's because DaimlerChrysler has said that it is sick and tired of Mitsubishi. That's its subsidiary in Japan that it has pumped a lot of money into. The DaimlerChrysler and other shareholders were discussing a $6 billion injection into Mitsubishi. Daimler says enough, we're not going to put any more money into that troubled Japanese auto maker. In fact, we're probably going to sell our stake in that company.

And as you can see, that has helped DaimlerChrysler's shares do very well. Of course, the troubled merger between Daimler and Chrysler has hurt shareholders in the U.S. a great deal. But this morning, a bit of a fill up here for all of you.

Also, DaimlerChrysler helping the main markets, as well. You can see the DAX here up almost one and a half percent. Daimler is a very big part of that index.

London doing well, Switzerland. Switzerland and France doing well. All of these doing very well because of Wall Street's high close yesterday. And the DAX, again, doing the best out of all of these.

Now, a quick look at currencies. The dollar has lost a bit of ground against the euro. Of course, it's done very well this week against the euro and the pound because of the thought that interest rates will rise in the U.S. come August or so. But some mixed numbers out of London today. Retail sales doing very well, indeed, out of U.K., which some people think that might mean that interest rates will also rise here. So a bit of U.S. money going back into the pound.

Now, Carol, before we go, I just want to say Happy Saint George's Day to you. Not many people know it, but he is the patron saint of England. But he doesn't get nearly as much recognition, of course, as Saint Patrick out of Ireland.

COSTELLO: Do they do anything like drink green beer on Saint George's Day?

BOULDEN: Well, of course, here you have things like brown ale. New Castle brown ale is what you drink, I think, here. You know, English beer is very, very popular and there's many of them. But some of them, I have to say, aren't very drinkable.

COSTELLO: Well, the green beer here isn't either. And I'm sure they don't drink green beer in Ireland on Saint Patrick's Day. I have been told that by a very good source.

BOULDEN: No, they all -- no.

COSTELLO: Thank you, Jim.

We appreciate it.

BOULDEN: They all go to the U.S., yes.

COSTELLO: To get that delicious green beer.

Thank you, Jim.

Wait until you hear this story. The Japanese civilians who were held hostage in Iraq, you know they're free and they're back home in Japan. But they are hardly getting a warm welcome. To the contrary. The public is angry at them and the government is actually billing them $6,000 for their air fare back to Japan.

Details now live from Atika Shubert in Tokyo -- Atika, this just seems mean.

ATIKA SHUBERT, CNN CORRESPONDENT: It's certainly not a warm welcome at all, by any means. In effect, the hostages are being blamed for their own kidnapping. And we've certainly seen the stress that it's putting on the hostages. When they first arrived back in Japan, they were literally doubled over bowing in apology, hoping to put this ordeal behind them. But the debate still continues. Just to give you an idea of some of the disapproval and really harassment that they're getting, letters from the public calling them the shame of the nation; tabloids looking into their private lives; some even suggesting that they staged the kidnapping themselves; and then politicians saying they should be billed for the expense of getting them out of Iraq.

So certainly not a warm welcome at all -- Carol.

COSTELLO: But, Atika, one of the people taken hostages, she was helping like poor, hungry Iraqi children there. There was a journalist there. I mean it seemed like they were trying to do good things in Iraq.

SHUBERT: That's right. It seems almost contrary and counter- intuitive, but people here say they felt that the family members were demanding too much of the government, that they were demanding that, if necessary, troops be withdrawn. And essentially it was, for many people we spoke to on the street, said it was too much. And for that reason, the backlash against the hostages.

Effectively what's happened is the hostages have stepped into this debate that's divided the nation -- what should the nation do? Should it -- should Japan support U.S. troops in Iraq? Should Japan send its own troops to Iraq? And the hostages, unfortunately, have been caught in the middle.

COSTELLO: Well, you know, what's really confusing? During the time they were held hostage -- and we all saw those really terrifying pictures with the knives under their throats -- it seemed like the people of Japan were on their side. They were very emotional. You could see them watching television and asking for a safe return.

What was that all about then?

SHUBERT: Well, certainly people were very shocked and angry when they first saw those pictures of the hostages being held at gunpoint. But then when the news of a release became imminent, suddenly the tables started to turn.

There were rumors that perhaps there was something fishy about the hostage taking, rumors that perhaps it was staged. All of this filtering around. And, also, it really steps in that people were angry that the hostages -- the hostage families appeared to be asking a lot, asking that, if necessary, the troops be withdrawn. And this really, again, gets to the heart of the debate here. About 50 percent of the people believe that Japanese troops should stay in Iraq and another 50 feel that they should be pulled out. And both sides were using the hostage case to their disadvantage. And unfortunately it's just put extra stress and pressure on what's already been an agonizing ordeal for the hostages.

COSTELLO: Atika Shubert live from Tokyo this morning.

Armed and dangerous to prevent the unthinkable from happening again. Hundreds of commercial pilots get ready to lock and load. And a covert attempt at Bush bashing. We'll tell you why a few choice words proved prosperous for an unsuspecting business owner.

(COMMERCIAL BREAK)

COSTELLO: I don't believe this study. I don't believe it.

MYERS: You don't?

COSTELLO: This is a study by Cornell's Institute for Health and Productivity.

MYERS: Yes.

COSTELLO: And it says that workers who come in sick cost their employers mega dollars.

MYERS: You should stay home when you're sick, it says.

COSTELLO: It says that, specifically, "Workers who come in sick cost their employers an average $255 each per year. Sick employees have difficulty concentrating, work more slowly, have to repeat tasks, bogging down productivity." And, of course, they make their other follow employees sick. I always come into work sick.

MYERS: They make their employees sick. They make other people sick. That's the problem. Because how can you be less productive if you're in the building than home? If you're home, you're not productive at all. But -- I am a germophobe. You should see the office. I've got this little Purelle hand thing here. People come in sick all the time, touch all the computer mouses, the keyboards. It's like go home. You're sick.

COSTELLO: I always come in when I'm sick.

MYERS: Well, go home.

COSTELLO: I feel guilty. I feel guilty if I don't come in, because someone else would have to work this awful shift.

MYERS: And down here in the South, and probably up in the North, now, too, because it's warming up, people can't tell if they're sick or not because there's so much pollen in the air. You can't tell whether you're head is stuffed up or not.

COSTELLO: See? That's another thing.

MYERS: I know.

COSTELLO: And by the time you get really sick, you probably are at work. You don't know that you're getting sick and you've already infected people. So I don't see how this study -- does it take everything into account, I wonder?

MYERS: I think it's just a little study.

COSTELLO: I think so, too.

MYERS: It probably costs millions of dollars but it's just a little study.

COSTELLO: All right, well, here's another question for you. How close do you look at those bilingual washing instruction labels? Boy, I bet you study those.

MYERS: Yes.

COSTELLO: That tops our DAYBREAK Eye-Opener.

A mystery. The bags sold by designer Tom Bihn in Seattle are getting a lot of attention for their labels. The instructions in French read, "We are sorry that our president is an idiot. We didn't vote for him." The designer says he doesn't know who came up with that label, but business is doing really good because of it. Hmmm.

In Florida, the North Miami Police Department is dropping a requirement that new police officers take a swimming test. The police chief, who's African-American, says part of the reason for dropping the requirement is to recruit black police officers. She says the requirement discouraged some African-Americans. That doesn't make sense to me.

MYERS: Well, that's (UNINTELLIGIBLE).

COSTELLO: And check out this cat. Talk about lost. This is Cheyenne, adopted by a woman in Bradenton, Florida in 1997. Shortly after the adoption, Cheyenne disappeared. Well, she was found this month all the way in San Francisco. The implanted computer chip in her body confirmed the cross country cat's identity. No one knows how the heck she got from Florida...

MYERS: I left my cat in San Francisco.

COSTELLO: In San Francisco.

We'll be right back.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: Restaurant chains typically build their menus on a type of food, say, Mexican or Chinese. But what about a restaurant focused on dessert?

The Cheesecake Factory has 75 locations based on the namesake dessert for which it offers over 40 varieties. And according to a recent restaurant publication, The Cheesecake Factory has the highest sales per store of any restaurant chain in the country.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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