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CNN Live At Daybreak

Another Huge Explosion Has Rocked Baghdad; Big week in Washington Before 9/11 Commission

Aired April 26, 2004 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: New pictures this morning. The smoke rises from another blast in Iraq on the same day a new symbol of democracy emerges. Does this nation have a new identity?
This is DAYBREAK for Monday, April 26.

And good morning to you.

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

Here are the latest headlines for you now.

Black smoke rises in Baghdad -- a huge explosion this morning sets four U.S. Humvees on fire. There are casualties. We don't know many more details just yet. We're going to take you live to Baghdad for more in just a minute or two.

Three U.S. Marines have been wounded, one seriously, in an ambush in the southern Afghan province of Kandahar. Taliban and al Qaeda fighters have stepped up attacks there in the last couple of weeks.

International aid is pouring into a North Korean town devastated by a train explosion. But relief workers say much more help is needed. One hundred sixty-one people were killed, more than 1,300 injured.

The U.S. Coast Guard won't be able to handle its duties under a current modernization plan. That is the finding of a new study just out this morning.

And two high profile attorneys have left Michael Jackson's legal team. Benjamin Bronfman says he and Mark Geragos are stepping down due to "complicated issues" -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The fight for Iraq has led to more bloodshed this morning. Another huge explosion has rocked Baghdad. This happened just a few hours ago. We don't know the casualty count just yet.

Jim Clancy has been busy getting the latest information for us. He joins us live from Baghdad with more -- hello, Jim.

JIM CLANCY, CNN CORRESPONDENT: Hello again, Carol. That's right, the details of this are developing very slowly. Once hundreds of people converged on the scene of this blast in northwest Baghdad, in an area that has some chemical storehouses for pesticides, for other legitimate uses. There was this huge blast and it is said to have wounded several people. We've seen pictures of people being dug out from the rubble. We've seen pictures of people being carried off on stretchers. So we know that there have been some casualties. No indication of the number yet, whether any U.S. military personnel may have been involved.

One eyewitness account says that soldiers went to this location, parked their Humvees outside it and attempted to enter it. That is when there was a huge explosion. Another eyewitness says there were shots fired before the explosion. In any event, it went up almost like a mushroom cloud over Baghdad and then hundreds and hundreds of people converged on the scene, some of them dancing on the burning Humvees.

There was an interesting article by Ian Fisher of the "New York Times" this morning in which he was told, he reports, anyway, that some of the cameramen that came on the scene actually asked the young people to do that, to jump up and down on the Humvees, to make better pictures. Actually, very dangerous to be doing that.

We don't know all of the details here. We're still looking at that. But it's something that made the situation in Baghdad a little more unsettled this day.

Meantime, coalition forces are planning to take steps in coming days that could have broad significance on two fronts -- one, in Najaf, in the south; the other on Fallujah, west of Baghdad.

(BEGIN VIDEOTAPE)

CLANCY (voice-over): Coalition forces are poised for movements in two key trouble spots that hold promise and enormous risk. South of Baghdad, U.S. coalition forces plan to move into the Spanish military base on the outskirts of the holy city of Najaf, where militant supporters of Muqtada al-Sadr have threatened suicide attacks to prevent being disarmed and to protect their leader from arrest. The coalition warns Shia leaders militants were preparing religious and civilian sites as armed fortresses in Najaf.

DAN SENOR, CPA SPOKESMAN: A dangerous situation is developing in Najaf where weapons are being stockpiled in mosques and in shrines and in schools.

CLANCY: The action, warned the coalition spokesman, put the population at risk. It appeared to put local leaders on notice that if militants were allowed a free hand within Najaf, it would only make matters worse.

West of Baghdad, in the Sunni Triangle, U.S. Marines are preparing for joint patrols with Iraqi police that will test insurgents' willingness to go along with a shaky truce agreed by religious and community leaders. If Fallujah's gunmen cooperate by allowing the patrols peaceful passage, it could ease the siege and help end daily skirmishes. But if U.S. or Iraqi forces meet armed resistance, it could send both sides scrambling to find other options, including a U.S. threat to take Fallujah by force.

(END VIDEOTAPE)

CLANCY: Well, right now we are told that there have been battles on two fronts in Fallujah. Ten Marines reported wounded, four of those seriously. That does not bode well for these joint patrols. It's a situation, Carol, that really bears watching.

COSTELLO: Jim Clancy live in Baghdad this morning.

It will be another big week in Washington before the 9/11 Commission. President Bush and Vice President Dick Cheney will appear together in private to tell the Commission what they knew and when they knew it.

Let's head live to D.C. and Bill Prasad for that story and much more -- good morning, Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.

Does the public have a right to know or should the courts protect the vice president's rights to confidentiality? It's a question the Supreme Court will ponder this week.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): The case surrounds Vice President Dick Cheney's energy policy meetings with executives in the energy industry. Mr. Cheney says the lists of participants are the business of the executive branch and that court involvement is meddling.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: We're setting a terrible precedent. We're saying the vice president cannot have confidential meetings.

PRASAD: His adversaries say the lists would show heavy influence by corporate energy interests, including ousted Enron chief executive Ken Lay. Add to this demands that Supreme Court Justice Antonin Scalia recuse himself because Cheney had taken him hunting.

UNIDENTIFIED MALE: This is a question of public confidence in the courts.

PRASAD: Also this week, the court will hear appeals involving two enemy combatants who are U.S. citizens, Yaser Hamdi and Jose Padilla. The case will test the limits of executive power officials have when it comes to detaining enemy combatants.

On Thursday, President Bush and the vice president will talk to the commission investigating the 9/11 attacks. The meeting will be in private. The men will not be under oath.

Finally, this image -- one year ago Saturday, the president stood on the deck of a Navy ship and announced an end to major hostilities in Iraq. More than 570 U.S. troops have been killed in Iraq since May 1, 2003.

(END VIDEOTAPE)

PRASAD: This as the stand-off continues in Najaf and Fallujah. U.S. soldiers may be drawn into the type of fight military officials were hoping to avoid -- street to street urban warfare.

We're live in Washington this morning.

I'm Bill Prasad -- Carol, back to you.

COSTELLO: All right, thank you, Bill.

A flood disaster in Arkansas tops our look at stories making news across America this Monday.

In just a few hours, rescue divers will resume their search for a 2-year-old boy. The boy was swept away by the flash flood. The body of the boy's 3-year-old sister was recovered on Saturday. Arkansas Governor Mike Huckabee will tour the devastated area by helicopter today, one day after designating seven counties disaster areas.

In Toledo, Ohio today, a priest is to be arraigned on a murder charge. The Reverend Gerald Robinson is accused of killing a nun 24 years ago. Cold case investigators believe Robinson strangled and stabbed Sister Margaret Ann Pahl in 1980.

Massachusetts Governor Mitt Romney is making it clear that only local couples can take advantage of the state's same-sex marriage law. Romney says he will block out of state couples from getting married when the law takes effect on May 17. At the same time, the governor's chief counsel says that any justices of the peace who refuse to perform same-sex marriages will be terminated.

Hundreds of thousands of women rally in Washington to hold onto a right they already have -- the right to choose an abortion. On hand in the midst of this huge crowd, Hillary Clinton, Madeleine Albright and Whoopi Goldberg.

CNN's Elaine Quijano was on the Mall.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): Thirty one years after the Supreme Court legalized abortion, a sea of abortion rights activists descended on Washington for what they called the March for Women's Lives. Their main message? To keep abortion legal. Organizers say roughly 1,400 groups mobilized activists for the event, which focused on broader women's health care issues.

UNIDENTIFIED MALE: It's not only abortion. It's sex education in the schools. It's providing condoms. It's a full reproductive health care program. SEN. HILLARY RODHAM CLINTON (D), NEW YORK: If all we do is march today, that will not change the direction that this country is headed under the leadership of this administration.

UNIDENTIFIED PROTESTERS: Hey, hey, ho, ho, George Bush has got to go!

QUIJANO: The marchers made clear their opposition to President Bush during this election year, whose policies, they say, have undermined reproductive rights.

WHOOPI GOLDBERG, ACTRESS: A couple of people said to me why are you carrying a hangar? I said because this is what life was like before choice. I'm here to tell you never again. We are not going backwards, child. Never again.

QUIJANO: Dozens of law makers and actors like Whoopi Goldberg and Cybill Shepherd, joined in the march and rally and appealed to younger generations of abortion rights supporters.

JULIANNE MOORE, ACTRESS: It's important for them to realize that these rights are not a given, that we're going to have to fight for them.

QUIJANO: The march also drew about 200 anti-abortion activists, who lined part of the route in a counter-demonstration, one prompted to action by an abortion she says she had.

ANTOINETTE CARR, ANTI-ABORTION ACTIVIST: I regret every second. It's not a second that doesn't go by that I don't think about that I took a life.

QUIJANO: U.S. Park Police say 16 of the anti-abortion activists were arrested for protesting without a permit.

(on camera): As for abortion rights activists, most hope their showing here will be enough to win swing voters come November and galvanize support behind President Bush's Democratic rival, Senator John Kerry.

Elaine Quijano, CNN, on the National Mall.

(END VIDEOTAPE)

COSTELLO: I might have mentioned it before, but we are getting in new pictures of Fallujah this morning.

David Clinch is here to explain what you're going to see.

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Yes, Carol, good morning.

First, as we are saying there on the scroll, that's the most important piece of information that we're getting to go with this video that we're getting from Fallujah today via video phone. At least 10 Marines have been injured in fighting today, Monday, in Fallujah. Now, they're still under the circumstances of a cease-fire, which the U.S. military was telling us yesterday would now last until Tuesday before -- at least Tuesday before any major assault.

Well, even in the absence of a major assault, obviously these minor clashes are continuing. Ten Marines injured. We're told four of them seriously injured today, Monday.

This...

COSTELLO: But do we know exactly how their injuries occurred? We're looking at this same industrial park in Fallujah, aren't we?

CLINCH: That's exactly correct. You and I were watching video from not exactly this building, but the same over -- position overlooking this part of the city. The Marines' classic rule of battle, take the high ground. There is no high ground in Fallujah. It's high buildings. The Marines have taken these high buildings, over which they can view the entire city. But, of course, if you're in a high building, you're also a target. No our pool reporters who are there continue to tell us that because the insurgents know where the Marines are, those buildings are being hit continuously.

COSTELLO: The reason I ask is because there's sort of a shift in strategy. Aren't coalition forces now going through the streets with Iraqi security forces?

CLINCH: Right. They are about to. That's a very good point. We were being told during the day yesterday that there was a plan, again, indicating that they would give these insurgents until at least Tuesday to hand over their weapons or face a massive assault on the city. They also made clear that what they wanted to do was take a new strategy -- go out into the streets with Iraqi forces, which might temper the effect of the Marines marching through the streets in Fallujah, and see if that had an effect to get more weapons handed over, to try and dampen this insurgency.

Well, these Marines clearly are not able to do those patrols today. We'll see now over the next 24 hours or so whether they can do that. It's just a continued low level conflict on at least one side of the city. On the other side of the city, we continue to see families coming back to Fallujah. We saw more pictures earlier of Iraqis, thousands of whom are still exiled from their homes because of this fighting, slowly but surely some are coming back. Some weapons have been handed over.

So it's a very difficult situation to read. We don't want to over dramatize the fighting as the only aspect of this. Some families are returning. Some weapons have handed over.

COSTELLO: And another point we should make, on Tuesday, let's say nobody's come -- because, you know, the only weapons they're turning in are weapons that are in disrepair and are essentially junk -- but on Tuesday, it doesn't necessarily mean that the U.S. is going to do an all out battle in Fallujah.

In fact, they've decided pretty much against that now, haven't they?

CLINCH: Well, that's not entirely clear. We do know that in Najaf, which is a separate situation with the Shiites there, that they've made it pretty clear they do not have any intention of marching into the holy sites there in Najaf to get Muqtada al-Sadr. That's one situation.

In Fallujah, I would not say yet that it's clear they will not march in again. They did it before. They may very well do it again. I think what is very clear is that they're giving as much time as possible for this cease-fire to work, for the local Iraqis to help them get these weapons handed over. But, of course, in the meantime, again, the headline from what we're seeing here, at least 10 Marines injured, four seriously. So this is at a cost.

COSTELLO: All right, David Clinch, many thanks to you.

CLINCH: OK.

COSTELLO: We're going to take a short break.

We'll be back with much more on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Time for a little business buzz right now. Think you're paying a lot for health care? Well, soon you may be paying even more.

Joya Dass live from the NASDAQ market site has the why of it all -- good morning.

JOYA DASS, CNN CORRESPONDENT: Good morning, Carol.

You'd think I'd have some good news for you. Well, employees might already be grumbling about the fact that they're paying more for their health care. But now employers are, too. There's a new study published in "USA Today." It's been done by the Mercer Human Resources Consulting Group. And what they've discovered is that about 73 percent of the companies that were surveyed have shown an interest in a new program called health savings accounts.

So, in other words, what this particular program allows you do to is set aside, as an employee you set aside money tax-free in a particular account that's going to cover the cost of your health care. The catch is that your deductible if you're a single person is $1,000. And if you're a family, your deductible is $2,000. And just to put that into perspective, that's about three times what people are paying right now. But employers are saying look, our health care costs are going up. They're almost at double digit increases right now and we need to figure out some other ways to kind of stave this off.

And, by the way, an additional part of this survey also says that these plans might be in effect by 2006 -- Carol.

COSTELLO: A quick look at the futures, Joya? DASS: They're looking flat this morning. We'll have to see how the day turns out, but right now they're looking flat.

CALLAWAY: All right, Joya Dass live from the NASDAQ market site.

We have some news to tell you just into us out of Fallujah.

Karl Penhaul is live -- is he in Fallujah?

He is in Fallujah -- Karl, what do you have to tell us?

KARL PENHAUL, CNN CORRESPONDENT: Here now in the northwest edge of Fallujah, there is a lull now in the fighting. But over the last three and a half hours, there's been a raging firefight. That began about 11:30 local time, as a Marine platoon pushed forward across to the southeast edge of the cemetery that you may be able to see behind. They moved into two buildings there before dawn and took up positions there so that they could observe suspected insurgent positions deeper inside the city.

The Marine platoon that the U.S. networks pool also traveled with was holed up in there for the space of four or five hours. And then an intense firefight broke out.

Captain Douglas Zembech (ph), commander of the company, of Echo Company, which is based here on the northwest edge of Fallujah, has told us that his men fought like lions during that firefight. He believes his men were vastly outnumbered by the Iraqi insurgents. Mortar rounds, rockets and automatic weapons fire was coming into both buildings. A very intense firefight. And the commander, Captain Zembech, does tell us that four of his men have been seriously wounded. He says that at least six others have also received shrapnel wounds.

The four that were injured have now been Medivaced out of the area and have been taken back to a rear position for treatment.

Following the firefight in those two buildings, the Marine platoon, backed up by tanks and also by Cobra attack helicopters, managed to punch out of that building and again move around the southeast edge of the cemetery, back into a schoolhouse. The firefight continued there and then elements of the platoon took up their other positions, their normal positions back on base and again returned fire to insurgent positions.

Again, Cobra attack helicopters were called in and this morning we've seen all sorts of munitions going off, ranging from mortars sent by Marines in a position further to the rear and also JDAMs. We've also seen 500 pound bombs, we understand, and possibly hellfire missiles being fired by those Cobra attack helicopters.

A number of buildings were in smoke. We saw at least three or four buildings where intense insurgent fire had been coming from. They went up in smoke. There was also the minaret of one of the mosques nearest to our position. Marines say that they were receiving sniper fire from that position. That minaret has now been totally destroyed.

This is Karl Penhaul for U.S. networks pool, Fallujah, Iraq.

COSTELLO: That information just coming into us from Fallujah. Again, 10 United States Marines wounded in Fallujah this morning. We'll have much more for you when DAYBREAK returns.

(COMMERCIAL BREAK)

COSTELLO: 6:24 Eastern time.

Time to pump up the volume now with our talker of the morning. Every few days, we like to tune the dial to see what's being said over the airwaves in this country.

This morning, the dial has landed on WBAL Radio in Baltimore.

Chip Franklin is a libertarian talk radio host.

Chip is on the phone with us live from Baltimore.

Hello, Chip.

CHIP FRANKLIN, WBAL RADIO HOST: Good morning, Carol.

COSTELLO: Hey...

FRANKLIN: Will someone tell Prince Bandar it's OK now to start manipulating oil prices?

COSTELLO: Oh, we're not going to talk about that again, are we?

FRANKLIN: Oh, man, I just took a second mortgage just to fill up my SUV. But, hey, thanks to Greenspan, I got a great rate. I'm with him.

COSTELLO: Do you believe that the average price of a gallon of gas is now $1.83?

FRANKLIN: Well, you know, considering in Europe it's about $6.50, I guess...

COSTELLO: Yes, but who cares? Here it's $1.83.

FRANKLIN: Well, not if you steal -- you siphon your neighbor's, it's not that bad, really.

COSTELLO: Hey, good idea.

Actually, on tap today we want to talk about the situation in Iraq and how it may play out in the days to come.

What do your listeners fear?

FRANKLIN: You know, it depends on who you talk to. I think there's a building sense of cynicism for some. We said yesterday we would give the political track longer to work and, of course, the whole country is like a Midwestern gun show. It seems like there's weapons everywhere. My favorite part is the extension of the deadline for residents to hand over these heavy weapons.

Did you see the junk we've received in this exchange?

COSTELLO: Oh, just, yes, I did.

FRANKLIN: I think I saw Timmy's B.B. gun from "Lassie" turn up.

COSTELLO: Oh, Chip.

You know, though, with the possibility of an all out attack by American forces on Fallujah -- and they haven't decided yet, mind you -- and the stockpiling of weapons by Iraqis in Najaf; Spain, Honduras, Bulgaria pulling troops out of Iraq; is there a shift in how your listeners are viewing the war?

FRANKLIN: Well, it depends on who you listen to, obviously. Some of the media has an agenda. The polls, of course, support President Bush. His popularity continues to go up even after a couple of weeks, which has to drive Kerry crazy.

COSTELLO: Well, definitely.

But why do you think that is? Fifty-one percent of Americans still think that invading Iraq was the right thing to do. Is it because they believe things are working out in Iraq or is it because President Bush is delivering such a strong message?

FRANKLIN: I think the average person is really not quite as bright as we give them credit for. I saw a poll that said 70 percent of high school students couldn't find Canada on a map and I thought if they kick the draft in, I bet that changes.

COSTELLO: Oh, Chip Franklin...

FRANKLIN: Honestly. I don't, you know, you look at this, it's, the whole thing is crazy. I mean June 30 is looming and we really have no plan. Who are we going to hand the country over to? To Halliburton?

COSTELLO: Chip Franklin, interesting, as always.

Chip Franklin from WBAL Radio in Baltimore.

Again, our radio segments are a chance for you to hear what's being said over the air waves in this country.

Tomorrow, libertarian conservative talker Neal Boortz and liberal talker Mike Malloy will join us live -- Chad.

MYERS: All right, Carol?

COSTELLO: Is it your turn?

MYERS: I'm not sure.

COSTELLO: I'm not sure either. What are we doing?

MYERS: Well, we're going to do a free cone day.

COSTELLO: Oh, free cone day.

MYERS: Yes. Do you know you can go to tomorrow, go to Ben & Jerry's and actually get a free ice cream cone if you sign up to vote?

CALLAWAY: Really.

MYERS: They are combining with Rock The Vote.

COSTELLO: Really?

MYERS: Yes.

CALLAWAY: So can you register to vote at the Ben & Jerry's?

MYERS: Most of them you can. You can go online and find out what locations will have the registering locations there for people there. But most of them will have that.

COSTELLO: That is a terrific idea.

MYERS: They typically give away free cones as their thank you for this day. This is the day they started tomorrow back in 1978, something like that. So this is kind of their thank you. But this year they're teaming up with Rock The Vote. So come in to get a free cone and sign up to vote.

COSTELLO: Now there will be virtually no excuse not to vote.

MYERS: Or to get a Rocky Road.

COSTELLO: Exactly.

Thank you, Chad.

MYERS: Yes.

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

Kobe Bryant's legal team in another face-off with the prosecution. We'll head live to Eagle County.

Plus, Donald Rumsfeld, Dick Cheney and the Supreme Court -- big government cases, big government names this week.

And then, the NFL salutes one of its own heroes on draft day. More on the patriotism and the picks later this hour.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: To all those heroes who have given their lives...

(END VIDEO CLIP)

(COMMERCIAL BREAK)

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Aired April 26, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: New pictures this morning. The smoke rises from another blast in Iraq on the same day a new symbol of democracy emerges. Does this nation have a new identity?
This is DAYBREAK for Monday, April 26.

And good morning to you.

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

Here are the latest headlines for you now.

Black smoke rises in Baghdad -- a huge explosion this morning sets four U.S. Humvees on fire. There are casualties. We don't know many more details just yet. We're going to take you live to Baghdad for more in just a minute or two.

Three U.S. Marines have been wounded, one seriously, in an ambush in the southern Afghan province of Kandahar. Taliban and al Qaeda fighters have stepped up attacks there in the last couple of weeks.

International aid is pouring into a North Korean town devastated by a train explosion. But relief workers say much more help is needed. One hundred sixty-one people were killed, more than 1,300 injured.

The U.S. Coast Guard won't be able to handle its duties under a current modernization plan. That is the finding of a new study just out this morning.

And two high profile attorneys have left Michael Jackson's legal team. Benjamin Bronfman says he and Mark Geragos are stepping down due to "complicated issues" -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The fight for Iraq has led to more bloodshed this morning. Another huge explosion has rocked Baghdad. This happened just a few hours ago. We don't know the casualty count just yet.

Jim Clancy has been busy getting the latest information for us. He joins us live from Baghdad with more -- hello, Jim.

JIM CLANCY, CNN CORRESPONDENT: Hello again, Carol. That's right, the details of this are developing very slowly. Once hundreds of people converged on the scene of this blast in northwest Baghdad, in an area that has some chemical storehouses for pesticides, for other legitimate uses. There was this huge blast and it is said to have wounded several people. We've seen pictures of people being dug out from the rubble. We've seen pictures of people being carried off on stretchers. So we know that there have been some casualties. No indication of the number yet, whether any U.S. military personnel may have been involved.

One eyewitness account says that soldiers went to this location, parked their Humvees outside it and attempted to enter it. That is when there was a huge explosion. Another eyewitness says there were shots fired before the explosion. In any event, it went up almost like a mushroom cloud over Baghdad and then hundreds and hundreds of people converged on the scene, some of them dancing on the burning Humvees.

There was an interesting article by Ian Fisher of the "New York Times" this morning in which he was told, he reports, anyway, that some of the cameramen that came on the scene actually asked the young people to do that, to jump up and down on the Humvees, to make better pictures. Actually, very dangerous to be doing that.

We don't know all of the details here. We're still looking at that. But it's something that made the situation in Baghdad a little more unsettled this day.

Meantime, coalition forces are planning to take steps in coming days that could have broad significance on two fronts -- one, in Najaf, in the south; the other on Fallujah, west of Baghdad.

(BEGIN VIDEOTAPE)

CLANCY (voice-over): Coalition forces are poised for movements in two key trouble spots that hold promise and enormous risk. South of Baghdad, U.S. coalition forces plan to move into the Spanish military base on the outskirts of the holy city of Najaf, where militant supporters of Muqtada al-Sadr have threatened suicide attacks to prevent being disarmed and to protect their leader from arrest. The coalition warns Shia leaders militants were preparing religious and civilian sites as armed fortresses in Najaf.

DAN SENOR, CPA SPOKESMAN: A dangerous situation is developing in Najaf where weapons are being stockpiled in mosques and in shrines and in schools.

CLANCY: The action, warned the coalition spokesman, put the population at risk. It appeared to put local leaders on notice that if militants were allowed a free hand within Najaf, it would only make matters worse.

West of Baghdad, in the Sunni Triangle, U.S. Marines are preparing for joint patrols with Iraqi police that will test insurgents' willingness to go along with a shaky truce agreed by religious and community leaders. If Fallujah's gunmen cooperate by allowing the patrols peaceful passage, it could ease the siege and help end daily skirmishes. But if U.S. or Iraqi forces meet armed resistance, it could send both sides scrambling to find other options, including a U.S. threat to take Fallujah by force.

(END VIDEOTAPE)

CLANCY: Well, right now we are told that there have been battles on two fronts in Fallujah. Ten Marines reported wounded, four of those seriously. That does not bode well for these joint patrols. It's a situation, Carol, that really bears watching.

COSTELLO: Jim Clancy live in Baghdad this morning.

It will be another big week in Washington before the 9/11 Commission. President Bush and Vice President Dick Cheney will appear together in private to tell the Commission what they knew and when they knew it.

Let's head live to D.C. and Bill Prasad for that story and much more -- good morning, Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.

Does the public have a right to know or should the courts protect the vice president's rights to confidentiality? It's a question the Supreme Court will ponder this week.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): The case surrounds Vice President Dick Cheney's energy policy meetings with executives in the energy industry. Mr. Cheney says the lists of participants are the business of the executive branch and that court involvement is meddling.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: We're setting a terrible precedent. We're saying the vice president cannot have confidential meetings.

PRASAD: His adversaries say the lists would show heavy influence by corporate energy interests, including ousted Enron chief executive Ken Lay. Add to this demands that Supreme Court Justice Antonin Scalia recuse himself because Cheney had taken him hunting.

UNIDENTIFIED MALE: This is a question of public confidence in the courts.

PRASAD: Also this week, the court will hear appeals involving two enemy combatants who are U.S. citizens, Yaser Hamdi and Jose Padilla. The case will test the limits of executive power officials have when it comes to detaining enemy combatants.

On Thursday, President Bush and the vice president will talk to the commission investigating the 9/11 attacks. The meeting will be in private. The men will not be under oath.

Finally, this image -- one year ago Saturday, the president stood on the deck of a Navy ship and announced an end to major hostilities in Iraq. More than 570 U.S. troops have been killed in Iraq since May 1, 2003.

(END VIDEOTAPE)

PRASAD: This as the stand-off continues in Najaf and Fallujah. U.S. soldiers may be drawn into the type of fight military officials were hoping to avoid -- street to street urban warfare.

We're live in Washington this morning.

I'm Bill Prasad -- Carol, back to you.

COSTELLO: All right, thank you, Bill.

A flood disaster in Arkansas tops our look at stories making news across America this Monday.

In just a few hours, rescue divers will resume their search for a 2-year-old boy. The boy was swept away by the flash flood. The body of the boy's 3-year-old sister was recovered on Saturday. Arkansas Governor Mike Huckabee will tour the devastated area by helicopter today, one day after designating seven counties disaster areas.

In Toledo, Ohio today, a priest is to be arraigned on a murder charge. The Reverend Gerald Robinson is accused of killing a nun 24 years ago. Cold case investigators believe Robinson strangled and stabbed Sister Margaret Ann Pahl in 1980.

Massachusetts Governor Mitt Romney is making it clear that only local couples can take advantage of the state's same-sex marriage law. Romney says he will block out of state couples from getting married when the law takes effect on May 17. At the same time, the governor's chief counsel says that any justices of the peace who refuse to perform same-sex marriages will be terminated.

Hundreds of thousands of women rally in Washington to hold onto a right they already have -- the right to choose an abortion. On hand in the midst of this huge crowd, Hillary Clinton, Madeleine Albright and Whoopi Goldberg.

CNN's Elaine Quijano was on the Mall.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): Thirty one years after the Supreme Court legalized abortion, a sea of abortion rights activists descended on Washington for what they called the March for Women's Lives. Their main message? To keep abortion legal. Organizers say roughly 1,400 groups mobilized activists for the event, which focused on broader women's health care issues.

UNIDENTIFIED MALE: It's not only abortion. It's sex education in the schools. It's providing condoms. It's a full reproductive health care program. SEN. HILLARY RODHAM CLINTON (D), NEW YORK: If all we do is march today, that will not change the direction that this country is headed under the leadership of this administration.

UNIDENTIFIED PROTESTERS: Hey, hey, ho, ho, George Bush has got to go!

QUIJANO: The marchers made clear their opposition to President Bush during this election year, whose policies, they say, have undermined reproductive rights.

WHOOPI GOLDBERG, ACTRESS: A couple of people said to me why are you carrying a hangar? I said because this is what life was like before choice. I'm here to tell you never again. We are not going backwards, child. Never again.

QUIJANO: Dozens of law makers and actors like Whoopi Goldberg and Cybill Shepherd, joined in the march and rally and appealed to younger generations of abortion rights supporters.

JULIANNE MOORE, ACTRESS: It's important for them to realize that these rights are not a given, that we're going to have to fight for them.

QUIJANO: The march also drew about 200 anti-abortion activists, who lined part of the route in a counter-demonstration, one prompted to action by an abortion she says she had.

ANTOINETTE CARR, ANTI-ABORTION ACTIVIST: I regret every second. It's not a second that doesn't go by that I don't think about that I took a life.

QUIJANO: U.S. Park Police say 16 of the anti-abortion activists were arrested for protesting without a permit.

(on camera): As for abortion rights activists, most hope their showing here will be enough to win swing voters come November and galvanize support behind President Bush's Democratic rival, Senator John Kerry.

Elaine Quijano, CNN, on the National Mall.

(END VIDEOTAPE)

COSTELLO: I might have mentioned it before, but we are getting in new pictures of Fallujah this morning.

David Clinch is here to explain what you're going to see.

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Yes, Carol, good morning.

First, as we are saying there on the scroll, that's the most important piece of information that we're getting to go with this video that we're getting from Fallujah today via video phone. At least 10 Marines have been injured in fighting today, Monday, in Fallujah. Now, they're still under the circumstances of a cease-fire, which the U.S. military was telling us yesterday would now last until Tuesday before -- at least Tuesday before any major assault.

Well, even in the absence of a major assault, obviously these minor clashes are continuing. Ten Marines injured. We're told four of them seriously injured today, Monday.

This...

COSTELLO: But do we know exactly how their injuries occurred? We're looking at this same industrial park in Fallujah, aren't we?

CLINCH: That's exactly correct. You and I were watching video from not exactly this building, but the same over -- position overlooking this part of the city. The Marines' classic rule of battle, take the high ground. There is no high ground in Fallujah. It's high buildings. The Marines have taken these high buildings, over which they can view the entire city. But, of course, if you're in a high building, you're also a target. No our pool reporters who are there continue to tell us that because the insurgents know where the Marines are, those buildings are being hit continuously.

COSTELLO: The reason I ask is because there's sort of a shift in strategy. Aren't coalition forces now going through the streets with Iraqi security forces?

CLINCH: Right. They are about to. That's a very good point. We were being told during the day yesterday that there was a plan, again, indicating that they would give these insurgents until at least Tuesday to hand over their weapons or face a massive assault on the city. They also made clear that what they wanted to do was take a new strategy -- go out into the streets with Iraqi forces, which might temper the effect of the Marines marching through the streets in Fallujah, and see if that had an effect to get more weapons handed over, to try and dampen this insurgency.

Well, these Marines clearly are not able to do those patrols today. We'll see now over the next 24 hours or so whether they can do that. It's just a continued low level conflict on at least one side of the city. On the other side of the city, we continue to see families coming back to Fallujah. We saw more pictures earlier of Iraqis, thousands of whom are still exiled from their homes because of this fighting, slowly but surely some are coming back. Some weapons have been handed over.

So it's a very difficult situation to read. We don't want to over dramatize the fighting as the only aspect of this. Some families are returning. Some weapons have handed over.

COSTELLO: And another point we should make, on Tuesday, let's say nobody's come -- because, you know, the only weapons they're turning in are weapons that are in disrepair and are essentially junk -- but on Tuesday, it doesn't necessarily mean that the U.S. is going to do an all out battle in Fallujah.

In fact, they've decided pretty much against that now, haven't they?

CLINCH: Well, that's not entirely clear. We do know that in Najaf, which is a separate situation with the Shiites there, that they've made it pretty clear they do not have any intention of marching into the holy sites there in Najaf to get Muqtada al-Sadr. That's one situation.

In Fallujah, I would not say yet that it's clear they will not march in again. They did it before. They may very well do it again. I think what is very clear is that they're giving as much time as possible for this cease-fire to work, for the local Iraqis to help them get these weapons handed over. But, of course, in the meantime, again, the headline from what we're seeing here, at least 10 Marines injured, four seriously. So this is at a cost.

COSTELLO: All right, David Clinch, many thanks to you.

CLINCH: OK.

COSTELLO: We're going to take a short break.

We'll be back with much more on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Time for a little business buzz right now. Think you're paying a lot for health care? Well, soon you may be paying even more.

Joya Dass live from the NASDAQ market site has the why of it all -- good morning.

JOYA DASS, CNN CORRESPONDENT: Good morning, Carol.

You'd think I'd have some good news for you. Well, employees might already be grumbling about the fact that they're paying more for their health care. But now employers are, too. There's a new study published in "USA Today." It's been done by the Mercer Human Resources Consulting Group. And what they've discovered is that about 73 percent of the companies that were surveyed have shown an interest in a new program called health savings accounts.

So, in other words, what this particular program allows you do to is set aside, as an employee you set aside money tax-free in a particular account that's going to cover the cost of your health care. The catch is that your deductible if you're a single person is $1,000. And if you're a family, your deductible is $2,000. And just to put that into perspective, that's about three times what people are paying right now. But employers are saying look, our health care costs are going up. They're almost at double digit increases right now and we need to figure out some other ways to kind of stave this off.

And, by the way, an additional part of this survey also says that these plans might be in effect by 2006 -- Carol.

COSTELLO: A quick look at the futures, Joya? DASS: They're looking flat this morning. We'll have to see how the day turns out, but right now they're looking flat.

CALLAWAY: All right, Joya Dass live from the NASDAQ market site.

We have some news to tell you just into us out of Fallujah.

Karl Penhaul is live -- is he in Fallujah?

He is in Fallujah -- Karl, what do you have to tell us?

KARL PENHAUL, CNN CORRESPONDENT: Here now in the northwest edge of Fallujah, there is a lull now in the fighting. But over the last three and a half hours, there's been a raging firefight. That began about 11:30 local time, as a Marine platoon pushed forward across to the southeast edge of the cemetery that you may be able to see behind. They moved into two buildings there before dawn and took up positions there so that they could observe suspected insurgent positions deeper inside the city.

The Marine platoon that the U.S. networks pool also traveled with was holed up in there for the space of four or five hours. And then an intense firefight broke out.

Captain Douglas Zembech (ph), commander of the company, of Echo Company, which is based here on the northwest edge of Fallujah, has told us that his men fought like lions during that firefight. He believes his men were vastly outnumbered by the Iraqi insurgents. Mortar rounds, rockets and automatic weapons fire was coming into both buildings. A very intense firefight. And the commander, Captain Zembech, does tell us that four of his men have been seriously wounded. He says that at least six others have also received shrapnel wounds.

The four that were injured have now been Medivaced out of the area and have been taken back to a rear position for treatment.

Following the firefight in those two buildings, the Marine platoon, backed up by tanks and also by Cobra attack helicopters, managed to punch out of that building and again move around the southeast edge of the cemetery, back into a schoolhouse. The firefight continued there and then elements of the platoon took up their other positions, their normal positions back on base and again returned fire to insurgent positions.

Again, Cobra attack helicopters were called in and this morning we've seen all sorts of munitions going off, ranging from mortars sent by Marines in a position further to the rear and also JDAMs. We've also seen 500 pound bombs, we understand, and possibly hellfire missiles being fired by those Cobra attack helicopters.

A number of buildings were in smoke. We saw at least three or four buildings where intense insurgent fire had been coming from. They went up in smoke. There was also the minaret of one of the mosques nearest to our position. Marines say that they were receiving sniper fire from that position. That minaret has now been totally destroyed.

This is Karl Penhaul for U.S. networks pool, Fallujah, Iraq.

COSTELLO: That information just coming into us from Fallujah. Again, 10 United States Marines wounded in Fallujah this morning. We'll have much more for you when DAYBREAK returns.

(COMMERCIAL BREAK)

COSTELLO: 6:24 Eastern time.

Time to pump up the volume now with our talker of the morning. Every few days, we like to tune the dial to see what's being said over the airwaves in this country.

This morning, the dial has landed on WBAL Radio in Baltimore.

Chip Franklin is a libertarian talk radio host.

Chip is on the phone with us live from Baltimore.

Hello, Chip.

CHIP FRANKLIN, WBAL RADIO HOST: Good morning, Carol.

COSTELLO: Hey...

FRANKLIN: Will someone tell Prince Bandar it's OK now to start manipulating oil prices?

COSTELLO: Oh, we're not going to talk about that again, are we?

FRANKLIN: Oh, man, I just took a second mortgage just to fill up my SUV. But, hey, thanks to Greenspan, I got a great rate. I'm with him.

COSTELLO: Do you believe that the average price of a gallon of gas is now $1.83?

FRANKLIN: Well, you know, considering in Europe it's about $6.50, I guess...

COSTELLO: Yes, but who cares? Here it's $1.83.

FRANKLIN: Well, not if you steal -- you siphon your neighbor's, it's not that bad, really.

COSTELLO: Hey, good idea.

Actually, on tap today we want to talk about the situation in Iraq and how it may play out in the days to come.

What do your listeners fear?

FRANKLIN: You know, it depends on who you talk to. I think there's a building sense of cynicism for some. We said yesterday we would give the political track longer to work and, of course, the whole country is like a Midwestern gun show. It seems like there's weapons everywhere. My favorite part is the extension of the deadline for residents to hand over these heavy weapons.

Did you see the junk we've received in this exchange?

COSTELLO: Oh, just, yes, I did.

FRANKLIN: I think I saw Timmy's B.B. gun from "Lassie" turn up.

COSTELLO: Oh, Chip.

You know, though, with the possibility of an all out attack by American forces on Fallujah -- and they haven't decided yet, mind you -- and the stockpiling of weapons by Iraqis in Najaf; Spain, Honduras, Bulgaria pulling troops out of Iraq; is there a shift in how your listeners are viewing the war?

FRANKLIN: Well, it depends on who you listen to, obviously. Some of the media has an agenda. The polls, of course, support President Bush. His popularity continues to go up even after a couple of weeks, which has to drive Kerry crazy.

COSTELLO: Well, definitely.

But why do you think that is? Fifty-one percent of Americans still think that invading Iraq was the right thing to do. Is it because they believe things are working out in Iraq or is it because President Bush is delivering such a strong message?

FRANKLIN: I think the average person is really not quite as bright as we give them credit for. I saw a poll that said 70 percent of high school students couldn't find Canada on a map and I thought if they kick the draft in, I bet that changes.

COSTELLO: Oh, Chip Franklin...

FRANKLIN: Honestly. I don't, you know, you look at this, it's, the whole thing is crazy. I mean June 30 is looming and we really have no plan. Who are we going to hand the country over to? To Halliburton?

COSTELLO: Chip Franklin, interesting, as always.

Chip Franklin from WBAL Radio in Baltimore.

Again, our radio segments are a chance for you to hear what's being said over the air waves in this country.

Tomorrow, libertarian conservative talker Neal Boortz and liberal talker Mike Malloy will join us live -- Chad.

MYERS: All right, Carol?

COSTELLO: Is it your turn?

MYERS: I'm not sure.

COSTELLO: I'm not sure either. What are we doing?

MYERS: Well, we're going to do a free cone day.

COSTELLO: Oh, free cone day.

MYERS: Yes. Do you know you can go to tomorrow, go to Ben & Jerry's and actually get a free ice cream cone if you sign up to vote?

CALLAWAY: Really.

MYERS: They are combining with Rock The Vote.

COSTELLO: Really?

MYERS: Yes.

CALLAWAY: So can you register to vote at the Ben & Jerry's?

MYERS: Most of them you can. You can go online and find out what locations will have the registering locations there for people there. But most of them will have that.

COSTELLO: That is a terrific idea.

MYERS: They typically give away free cones as their thank you for this day. This is the day they started tomorrow back in 1978, something like that. So this is kind of their thank you. But this year they're teaming up with Rock The Vote. So come in to get a free cone and sign up to vote.

COSTELLO: Now there will be virtually no excuse not to vote.

MYERS: Or to get a Rocky Road.

COSTELLO: Exactly.

Thank you, Chad.

MYERS: Yes.

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

Kobe Bryant's legal team in another face-off with the prosecution. We'll head live to Eagle County.

Plus, Donald Rumsfeld, Dick Cheney and the Supreme Court -- big government cases, big government names this week.

And then, the NFL salutes one of its own heroes on draft day. More on the patriotism and the picks later this hour.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: To all those heroes who have given their lives...

(END VIDEO CLIP)

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