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CNN Live At Daybreak

U.S. Marine Plan to Pullback From Fallujahh; Google's Announcement That They Will Make an IPO

Aired April 30, 2004 - 06:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: A pullback from the Iraqi flashpoint city of Fallujah.
This is DAYBREAK for Friday, April 30.

And good morning to you.

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

Here are the latest headlines for you now.

U.S. Marines plan to pullback from Fallujah into surrounding rural areas. The decision follows an agreement with former Iraqi generals over security for the besieged city.

A recording said to be that of terrorist leader Abu Musab al- Zarqawi talks of a plan to bomb the Jordanian intelligence headquarters. The attack was to be a response to Jordan's collaboration with the United States and Israel.

The circus returns to Santa Maria, California today. Media fans and the curious will squeeze into the small city for Michael Jackson's second arraignment in a child molestation case.

And a perfect landing for a U.S. astronaut and his Russian and Dutch crewmates. The trio return to Earth today after six months on the international space station.

To Chad for the forecast.

CHAD MYERS, CNN CORRESPONDENT: Do you remember when the first guys came back from Apollo and they put them in quarantine and they had their suits and all? Now, the guys are just going hey, welcome back. How are you doing.

COSTELLO: Oh, well. Let's go to Denny's.

MYERS: Right.

(WEATHER REPORT)

COSTELLO: To Iraq now and Fallujah. We want to talk more about the Marines pulling back from the city. What exactly does it mean?

Let's head live to Baghdad and Ben Wedeman -- Ben, we've been talking about this proposed deal between Iraqi generals and the Marines.

Is it a done deal now? BEN WEDEMAN, CNN CORRESPONDENT: Well, it certainly seems to be moving ahead. What we've seen this morning is the Marines beginning to pull back in certain areas. This, part of this arrangement worked out with a group of former generals and officers from Saddam Hussein's army. They have come forward. They volunteered a force of between 600 and 1,000 men who would take up security duties in and around Fallujah. So we do see that the Marines certainly seem to think that this may be going ahead.

Now, there are reports that some of those generals went inside Fallujah themselves and were greeted by a jubilant crowd. Now, this city of 300,000 has been severely disrupted over the last several weeks. Hundreds have been killed. Thousands have basically fled the city. The economy is in shambles, so it's not surprising that the prospect of a return to law and order, ordinary life, would be welcome to many people there.

The question is would it be welcome to the possibly as many as 2,000 armed insurgents who are reportedly still in Fallujah, reportedly not yet reached any agreement with these generals on laying down their arms and bringing that city back to some form of normalcy -- Carol.

COSTELLO: So, then, Ben, why are the U.S. Marines pulling back from the city into rural areas?

Is it to allow the experiment some time to work?

WEDEMAN: Essentially, that's it, Carol, to allow the security of these Iraqi security forces to take up positions, to show that the Marines are pulling back and the Iraqi forces are moving in. Of course, this experiment is fascinating in the sense that the U.S., in the beginning of this experiment in Iraq, had basically fired all the former members of the Iraqi Army. Now we find them a year later turning around and they're trying to cooperate with them, seeing them as possibly the only ones who can resolve this very thorny problem -- Carol.

COSTELLO: Ben Wedeman live from Baghdad this morning.

There is also a deal similar to the one in Fallujah now under way in the Iraqi city of Najaf. Soldiers are surrounding the city there. Sheikh al-Sadr still holed up somewhere inside the city.

Our Baghdad bureau chief Jane Arraf is in Najaf.

Tell us about this proposed deal in Najaf -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Carol, it's very early stages and it has some differences from Fallujah. But where it's similar is that there is an attempt, a political and military attempt, to try to bring together local leaders, religious officials, anyone who has authority in Najaf who will talk to American forces or intermediaries to broker a deal where Iraqis would take control again over security in Najaf. And by Iraqis, this is the Iraqi civil defense forces and perhaps a compilation of other elements. But essentially it would be civil defense forces going back in, the militia disbanding -- and this is the militia that's loyal to the radical cleric Muqtada al-Sadr.

And the interesting thing is an offer is apparently being made to members of the militia, who will lay down their arms, leave that banned militia to become members of the Iraqi civil defense forces.

Now, again, this is in the very early stages, but it would be a concept similar to that being tried in Fallujah, military and political sources tell us.

At the same time, Carol, the buildup of U.S. forces here continues. They're emphasizing that they would like a political solution. They're not going anywhere near the holy city of Najaf. But they do have the military capability to take action if they have to -- Carol.

COSTELLO: Jane Arraf reporting live from Najaf, Iraq this morning.

The woman who photographed the U.S. military caskets being flown home has herself returned home. Tami Silicio was fired by the military contractor after her photographs appeared in a Seattle newspaper.

Silicio and her husband talked to reporters after landing in Seattle and she was asked if she regretted taking those photos.

(BEGIN VIDEO CLIP)

TAMI SILICIO, EX-CARGO WORKER: No, I don't, because what happened has opened up eyes, from what I have understood now, and that it has helped a great many people a lot.

(END VIDEO CLIP)

COSTELLO: Defense Department policy bars the media from photographing caskets being returned to the United States.

And there is more controversy over pictures of troops killed in Iraq. Tonight, "Nightline" will air the names and pictures of the fallen in a tribute. Well, Sinclair Broadcasting, a company that owns seven TV stations that carry ABC, will not air tonight's "Nightline." The company finds the programming contrary to the public interest.

ABC News says the "Nightline" show seeks to "honor those who've laid down their lives for this country." We'd like to know if you agree or disagree with the decision by Sinclair Broadcasting. E-mail us your opinions to daybreak@cnn.com. That's daybreak@cnn.com.

We've gotten a lot of great e-mails and we'll read some to you later this morning.

While some U.S. troops prepare to deploy overseas, others are returning. In St. Martinsville, Louisiana, family, friends and others came out to send off National Guard soldiers from the 199th Support Battalion. The troops are heading to Fort Hood, Texas and then on to Iraq.

It was a different story in Sante Fe, New Mexico. The National Guard's 717th Medical Company returned from Afghanistan to the delight of this crowd.

A posthumous promotion for Pat Tillman. Of course, he's the former NFL player killed in Afghanistan last week. He was promoted from specialist to corporal. Tillman turned down a $3 million contract offer from the Arizona Cardinals to join the Army two years ago.

Still to come on DAYBREAK, the president's meeting with the 9/11 Commission -- hear how members describe the president's performance at that closed door session.

Plus, the company's slogan is don't be evil. But how will that motto stand as Google enters the big, bad world of Wall Street?

This is DAYBREAK for April 30.

(COMMERCIAL BREAK)

COSTELLO: 6:10 Eastern time.

After being drilled about events surrounding September 11, President Bush holds an Oval Office meeting today with Canadian Prime Minister Paul Martin. The 9/11 Commission held an unprecedented Q&A meeting with President Bush and Vice President Dick Cheney. The three hour meeting was private, as you know, and few details are being released. But, Commission members are describing the pair as "candid."

President Bush describes it this way.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If we had something to hide, we wouldn't have met with them in the first place. We answered all their questions. And, as I say, I think -- I came away good about the session because I wanted them to know, you know, how I set strategy, how we run the White House, how we deal with threats.

(END VIDEO CLIP)

COSTELLO: The Commission is expected to issue its report by July 26.

John Kerry takes his campaign to Missouri today. He will speak at Westminster College. That is the very same college where Vice President Dick Cheney earlier this week blasted Kerry's judgment on national security. Last night, Kerry made an unscheduled stop in an African-American community in Harrisburg, Pennsylvania. He shook hands and signed autographs for people who waved at his motorcade. In the meantime, on Black Entertainment Television, Kerry invited rival Al Sharpton to speak at the Democratic National Convention.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: And he certainly earned the right to be part of this process. And I think he can be very, very helpful in motivating people and helping to register people and being part.

QUESTION: Will he speak at the convention?

KERRY: I hope so. Sure.

QUESTION: Is that your call or...

KERRY: That's my call.

QUESTION: OK. So if he wants to do it, he can do it?

KERRY: If he wants to do it, he can do it. If he wants to do it -- I'd like him to do it. I think he did a terrific job. I think he'll add something.

QUESTION: OK.

KERRY: So it's -- he doesn't have to -- there's no plea necessary.

QUESTION: OK.

KERRY: It's my invitation.

(END VIDEO CLIP)

COSTELLO: Your news, money, weather and sports.

It is 6:12 Eastern time.

Here's what's all new this morning.

After progress in talks, U.S. Marines said today they do plan to pull back from Fallujah into rural areas. No word on exactly when that will happen, though.

A jury has decided in favor of nine insurance firms, agreeing the Twin Towers attack was a single event. The verdict reduces by 50 percent the amount sought by the World Trade Center leaseholder.

In money news, it looks like being connected to the Internet will remain tax-free. The Senate votes to renew a ban on taxing Internet access. The tax ban is for four years. The House wants a permanent ban.

In sports, the Kentucky Derby kicks off with a new tradition on Saturday. Jockeys may now have ads plastered on their silks. A judge blocked a state rule banning jockeys from wearing ads during races, so gentlemen and ladies, start your horses.

I said that again for your benefit, Chad. He thinks that's funny for some reason.

MYERS: I do.

COSTELLO: In culture, Donald Trump is tying the knot for the third time. Trump has proposed to his long time girlfriend. He gave her a serious ring. We don't know how many carats, though. But I'm sure it's a doozy.

MYERS: Yes. She probably can't keep her hand up.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Time for a little business buzz right now.

Wall Street gets ready to Google.

Joya Dass has more on the story from the NASDAQ market site -- good morning.

JOYA DASS, CNN CORRESPONDENT: Good morning, Carol.

That's right, it is official. Google said yesterday that they are going to make a $2.7 billion initial public offering and this is one of the most hotly anticipated initial public offerings since the '90s, and maybe even Netscape, I think, is the last one to have this much hype.

Now, you notice something different here. They're already kind of setting a very unconventional tone in this stock offering. We don't know how many shares are going to be floated. And, more importantly, we don't know how much each share is going to be valued at. What Google is doing is they're doing somebody unconventional in the way that they're even setting the fair value market price for each share of Google. They're going to do an auction where informed buyers and sellers are going to actually going to be able to set what that price is going to be. This is really a means to an end for Google. The two former graduate students who started the company say that they want to make sure that Google gets to the masses. Normally, you or I wouldn't be able to get in on a stock offering. It's all who you know. They want to make sure that it gets into as many hands as the individual investors can get their hands on them.

So, Google also, the founders did a little tongue in check letter, if you will, an owners manual to shareholders, saying don't be evil, invest in this company for the long-term. And we're not a conventional company and we're never going to be one.

COSTELLO: Let's hope so, because they are refreshing, aren't they?

Joya Dass live from the NASDAQ market site.

This week, a Texas jury awarded $1 billion to the family of a woman who died after taking the now banned Fen-Phen diet drugs. Some legal experts say that award is not likely to stand. The drug maker is appealing. In the meantime, other diet pills remain popular despite possible bad side effects.

Our medical correspondent Elizabeth Cohen has more for you.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN CORRESPONDENT (voice-over): Karen Bowers (ph) says after failing on all sorts of diets, an experimental pill helped her go from 190 to 145 pounds in about a year.

KAREN BOWERS: And I lost 45 pounds. And I didn't -- that was without effort, without pain. It just melted away.

COHEN: Sounds great. But here's a diet pill reality check. Most of the people who took the drug weren't nearly as lucky as Karen. They were, for the most part, obese, and when they took the pill, called Rimonabant, and dieted for a year, they lost just 19 pounds. And the pill can have side effects. Some people became nauseated. Others developed upper respiratory infections. And, since it's an experimental drug, there can be side effects that no one yet knows about.

But Karen said she didn't mind taking the risks.

BOWERS: You'll end up dying from obesity anyway. And I was miserable. And I wanted to lose weight and so I'm willing to gamble.

COHEN: There are millions like her out there, willing to take risks to lose weight. Even when doctors reported that the diet drug Fen-Phen caused heart problems, people still demanded it. The FDA later took it off the market.

And people take the drug Xenical, even though many say it doesn't work that well, and it can cause embarrassing gastrointestinal problems.

Meridia, the only other FDA approved diet drug, can make your blood pressure go up. No one knows the long-term side effects of most diet drugs, because studies haven't been done yet. But that doesn't bother Karen Bowers. She gained back nearly half her weight when she went off Rimonabant and so she says she wants to go back on it and stay on it for life.

Elizabeth Cohen, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: Next, the fastest two minutes in sports.

This year the horses aren't all the talk of the Derby, though. Find out why the jockeys' silk has been at the center of controversy. And our DAYBREAK Photo of the Day. What is it? We'll tell you after a break.

(COMMERCIAL BREAK)

COSTELLO: Oh, yes, Ted Koppel will be on Anderson Cooper's show at 7:00 p.m. Eastern. And no doubt he'll be talking about his "Nightline" program tonight. It airs in most cities at 11:35 p.m. Eastern time.

MYERS: Right.

COSTELLO: And the big controversy -- Ted Koppel is going to honor the war dead by naming their names and showing their pictures. Sinclair Broadcasting, that owns seven stations which carry ABC, has decided not to show the "Nightline" program in their cities.

We've been soliciting your e-mails.

MYERS: And the whole thing was -- we read a bunch of it earlier -- we read some comments from Sinclair that they just don't think this is the way to do it. But...

COSTELLO: No, they think it's politically motivated.

MYERS: They think it's politically motivated.

COSTELLO: On the other hand, Sinclair executives donated to the Bush-Cheney campaign and did not donate any money to the Kerry camp.

MYERS: I'm so glad you said that, because Gus in Akron, not far from you, said: "You were quick to point out that several upper echelon members of Sinclair gave to the Bush campaign, but now many ABC bigwigs gave to the Kerry campaign."

COSTELLO: Good point.

MYERS: Don't know. There you go.

COSTELLO: This from Edwin in Toronto: "I don't care. I watch CNN. They can put whatever they like on that channel."

MYERS: There you go. There you go. Who was that from?

COSTELLO: That was from Edwin from Toronto.

MYERS: All right, we appreciate it.

COSTELLO: And this one: "What have we come to? A censored state for our own good? What does that sound like? Is anyone protesting? I am a faithful follower of "Nightline" and was looking forward to the salute to our fallen troops." That's from Karen.

MYERS: That's been the way it's been running. We've got about 250 e-mails this morning and that's pretty much the way it's running. "Disagree with Sinclair's decision to pull "Nightline" on the air. We owe it to our fallen to give them respect and recognition." That was from Nancy Moran (ph).

COSTELLO: This is from Thomas from Atlanta, Texas: "War is a terrible thing, bought by the old and paid for with the blood of the young. Those who die for their country should absolutely be honored and their faces and names should be indelibly impressed on all who have benefited from their sacrifice."

Thank you for the e-mails this morning.

Very interesting.

MYERS: Yes.

COSTELLO: Time now for our DAYBREAK Eye-Openers.

First, the big blow in New Mexico. Blowing dust shut down part of Interstate 40 -- you've been telling us about that, Chad.

MYERS: Yes.

COSTELLO: Well, it shut down other major roadways, as well, in southeastern New Mexico. Dust storms Wednesday and last week blamed for a fatal chain reaction traffic accident. Much the same story in Nevada, where strong winds kicked up dust storms, cutting visibility near zero in some areas.

In Florida, beware of Big Brother in one ritzy Palm Beach County town. Driving past waterfront mansions in Manalapan will put you on record. Did I pronounce that right?

MYERS: I don't know.

COSTELLO: I hope so.

High tech cameras will snap pictures of cars and license plates. A computer will run the tags against a criminal database.

And in California, a diver who got separated from his diving group was drifting about seven miles offshore when he was spotted by a Boy Scout on an excursion cruise.

(BEGIN VIDEO CLIP)

DAN CARLOCK, RESCUED DIVER: I started waving that tube and waving the other arm and blowing the hell out of the whistle.

ZACH MAYBERRY, BOY SCOUT: I had to look through a pair of binoculars to even see him because he was that far out. Everybody's saying I'm a hero. I don't -- to tell you the truth, I don't really care. All I really care about is that this guy is safe.

(END VIDEO CLIP)

COSTELLO: I hope he gets a new Boy Scout patch, though, don't you?

MYERS: Yes.

COSTELLO: Carlock floated for hours waiting for his diving buddies to come back for him, but they never did.

More than money will be riding on the Kentucky Derby tomorrow. Jockeys may be wearing advertising on their silks. A judge's ruling blocks a state ban on jockeys wearing ads.

Craig Hoffman of CNN affiliate WAVE in Louisville got some reaction to that ruling.

(BEGIN VIDEOTAPE)

CRAIG HOFFMAN, WAVE CORRESPONDENT (voice-over): Veteran Shane Sellers led the charge so that Kentucky jockeys can display their union patch. And some of those who sued can now wear advertiser logos on their pants or tunics.

SHANE SELLERS, JOCKEY: And it's showing that if we stick together, we can get things done in this -- in the industry. And I'm just so grateful. And I'm pretty lost for words. I mean, you know, I stuck my neck out on the line and we got this done and it's a great feeling.

HOFFMAN: Sellers alone stands to make $30,000 in sponsorship dollars Derby day. Jockeys can't step on Churchill Downs sponsors, but the judge's ruling gives them an opportunity they did not have before.

ROBBY ALBARADO, JOCKEY: It comes up, if an opportunity would arise, I would consider. Not to say that I would do it, but I'm sure I'll be wearing a guild patch.

PAT DAY, JOCKEY: And an opportunity to include some new sponsors into the game and get some new money in here and expand the horizons, if you would. And I see it as a good deal.

HOFFMAN (on camera): Kentucky Governor Ernie Fletcher, who formed the new horse racing authority, says it's time to put this issue aside and start working on new regulations to protect the traditions of the turf and give jockeys commercial opportunity.

(voice-over): Lawyers representing the jockeys say it's time for the governor to back those words with action.

CHRISTOPHER LASCH, JOCKEY'S GUILD ATTORNEY: You know, we hope that the authority will take to heart the judge's ruling and understand that their power is not all encompassing, that they have to respect the constitutional rights of these riders.

(END VIDEOTAPE)

COSTELLO: Interesting.

MYERS: Can you see it? He gets off the horse, yes, I want to thank the Home Depot horse man. He was great today. We gave him some Pepsi this morning and he really, really ran. I want to thank Goodyear. I want to thank -- oh, you just think, oh my, here we go.

COSTELLO: Everybody wants to make a buck.

MYERS: So, did you figure out what the picture was?

COSTELLO: I didn't, actually. I know it was flowers, but...

MYERS: Drew here from our, our little stage manager here, said it was probably the Run for the Roses roses. But, in fact, it was close. Carnations, a Maryland incarnation, in fact, that's what it says. This is from the Minneapolis Institute of Art's 21st annual Art In Bloom show. Three thousand carnations went into this one particular little display and there are many, many displays there. It lasts through Sunday. Get out and see it. A great -- a lot of work on those guys.

COSTELLO: And on the right hand side you saw the Andy Warhol rendition in carnations.

MYERS: It was the other side, right? What was that called?

COSTELLO: Yes.

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

Remember when you used to pop the tape in the VCR when there was something you wanted to watch on television? Well, coming up, the new wave of home entertainment. It's easier than you may think to get on this technology bandwagon.

Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Audrey Woods. I'm representing Mrs. Harrison.

UNIDENTIFIED MALE: Audrey Woods?

UNIDENTIFIED FEMALE: Right. Mrs. Harrison.

UNIDENTIFIED MALE: I've heard good things.

(END VIDEO CLIP)

COSTELLO: Some of your favorite stars heat up the big screen this weekend. We'll get a box office preview for you.

And a live report from the West Coast, where a show of another sort is scheduled for today -- Michael Jackson's arraignment in a California courtroom.

(COMMERCIAL BREAK)

COSTELLO: One year ago tomorrow, we heard the words "mission accomplished." Today, a democracy in transition, a country in turmoil.

This is DAYBREAK for Friday, April 30.

And good morning to you.

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

And good morning to you.

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

Let me bring you up to date.

U.S. Marines say they plan to pull back from Fallujah and have former Iraqi generals oversee an Iraqi force securing the city. CNN's Jane Arraf is reporting a similar deal is under way for Najaf.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired April 30, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A pullback from the Iraqi flashpoint city of Fallujah.
This is DAYBREAK for Friday, April 30.

And good morning to you.

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

Here are the latest headlines for you now.

U.S. Marines plan to pullback from Fallujah into surrounding rural areas. The decision follows an agreement with former Iraqi generals over security for the besieged city.

A recording said to be that of terrorist leader Abu Musab al- Zarqawi talks of a plan to bomb the Jordanian intelligence headquarters. The attack was to be a response to Jordan's collaboration with the United States and Israel.

The circus returns to Santa Maria, California today. Media fans and the curious will squeeze into the small city for Michael Jackson's second arraignment in a child molestation case.

And a perfect landing for a U.S. astronaut and his Russian and Dutch crewmates. The trio return to Earth today after six months on the international space station.

To Chad for the forecast.

CHAD MYERS, CNN CORRESPONDENT: Do you remember when the first guys came back from Apollo and they put them in quarantine and they had their suits and all? Now, the guys are just going hey, welcome back. How are you doing.

COSTELLO: Oh, well. Let's go to Denny's.

MYERS: Right.

(WEATHER REPORT)

COSTELLO: To Iraq now and Fallujah. We want to talk more about the Marines pulling back from the city. What exactly does it mean?

Let's head live to Baghdad and Ben Wedeman -- Ben, we've been talking about this proposed deal between Iraqi generals and the Marines.

Is it a done deal now? BEN WEDEMAN, CNN CORRESPONDENT: Well, it certainly seems to be moving ahead. What we've seen this morning is the Marines beginning to pull back in certain areas. This, part of this arrangement worked out with a group of former generals and officers from Saddam Hussein's army. They have come forward. They volunteered a force of between 600 and 1,000 men who would take up security duties in and around Fallujah. So we do see that the Marines certainly seem to think that this may be going ahead.

Now, there are reports that some of those generals went inside Fallujah themselves and were greeted by a jubilant crowd. Now, this city of 300,000 has been severely disrupted over the last several weeks. Hundreds have been killed. Thousands have basically fled the city. The economy is in shambles, so it's not surprising that the prospect of a return to law and order, ordinary life, would be welcome to many people there.

The question is would it be welcome to the possibly as many as 2,000 armed insurgents who are reportedly still in Fallujah, reportedly not yet reached any agreement with these generals on laying down their arms and bringing that city back to some form of normalcy -- Carol.

COSTELLO: So, then, Ben, why are the U.S. Marines pulling back from the city into rural areas?

Is it to allow the experiment some time to work?

WEDEMAN: Essentially, that's it, Carol, to allow the security of these Iraqi security forces to take up positions, to show that the Marines are pulling back and the Iraqi forces are moving in. Of course, this experiment is fascinating in the sense that the U.S., in the beginning of this experiment in Iraq, had basically fired all the former members of the Iraqi Army. Now we find them a year later turning around and they're trying to cooperate with them, seeing them as possibly the only ones who can resolve this very thorny problem -- Carol.

COSTELLO: Ben Wedeman live from Baghdad this morning.

There is also a deal similar to the one in Fallujah now under way in the Iraqi city of Najaf. Soldiers are surrounding the city there. Sheikh al-Sadr still holed up somewhere inside the city.

Our Baghdad bureau chief Jane Arraf is in Najaf.

Tell us about this proposed deal in Najaf -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Carol, it's very early stages and it has some differences from Fallujah. But where it's similar is that there is an attempt, a political and military attempt, to try to bring together local leaders, religious officials, anyone who has authority in Najaf who will talk to American forces or intermediaries to broker a deal where Iraqis would take control again over security in Najaf. And by Iraqis, this is the Iraqi civil defense forces and perhaps a compilation of other elements. But essentially it would be civil defense forces going back in, the militia disbanding -- and this is the militia that's loyal to the radical cleric Muqtada al-Sadr.

And the interesting thing is an offer is apparently being made to members of the militia, who will lay down their arms, leave that banned militia to become members of the Iraqi civil defense forces.

Now, again, this is in the very early stages, but it would be a concept similar to that being tried in Fallujah, military and political sources tell us.

At the same time, Carol, the buildup of U.S. forces here continues. They're emphasizing that they would like a political solution. They're not going anywhere near the holy city of Najaf. But they do have the military capability to take action if they have to -- Carol.

COSTELLO: Jane Arraf reporting live from Najaf, Iraq this morning.

The woman who photographed the U.S. military caskets being flown home has herself returned home. Tami Silicio was fired by the military contractor after her photographs appeared in a Seattle newspaper.

Silicio and her husband talked to reporters after landing in Seattle and she was asked if she regretted taking those photos.

(BEGIN VIDEO CLIP)

TAMI SILICIO, EX-CARGO WORKER: No, I don't, because what happened has opened up eyes, from what I have understood now, and that it has helped a great many people a lot.

(END VIDEO CLIP)

COSTELLO: Defense Department policy bars the media from photographing caskets being returned to the United States.

And there is more controversy over pictures of troops killed in Iraq. Tonight, "Nightline" will air the names and pictures of the fallen in a tribute. Well, Sinclair Broadcasting, a company that owns seven TV stations that carry ABC, will not air tonight's "Nightline." The company finds the programming contrary to the public interest.

ABC News says the "Nightline" show seeks to "honor those who've laid down their lives for this country." We'd like to know if you agree or disagree with the decision by Sinclair Broadcasting. E-mail us your opinions to daybreak@cnn.com. That's daybreak@cnn.com.

We've gotten a lot of great e-mails and we'll read some to you later this morning.

While some U.S. troops prepare to deploy overseas, others are returning. In St. Martinsville, Louisiana, family, friends and others came out to send off National Guard soldiers from the 199th Support Battalion. The troops are heading to Fort Hood, Texas and then on to Iraq.

It was a different story in Sante Fe, New Mexico. The National Guard's 717th Medical Company returned from Afghanistan to the delight of this crowd.

A posthumous promotion for Pat Tillman. Of course, he's the former NFL player killed in Afghanistan last week. He was promoted from specialist to corporal. Tillman turned down a $3 million contract offer from the Arizona Cardinals to join the Army two years ago.

Still to come on DAYBREAK, the president's meeting with the 9/11 Commission -- hear how members describe the president's performance at that closed door session.

Plus, the company's slogan is don't be evil. But how will that motto stand as Google enters the big, bad world of Wall Street?

This is DAYBREAK for April 30.

(COMMERCIAL BREAK)

COSTELLO: 6:10 Eastern time.

After being drilled about events surrounding September 11, President Bush holds an Oval Office meeting today with Canadian Prime Minister Paul Martin. The 9/11 Commission held an unprecedented Q&A meeting with President Bush and Vice President Dick Cheney. The three hour meeting was private, as you know, and few details are being released. But, Commission members are describing the pair as "candid."

President Bush describes it this way.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If we had something to hide, we wouldn't have met with them in the first place. We answered all their questions. And, as I say, I think -- I came away good about the session because I wanted them to know, you know, how I set strategy, how we run the White House, how we deal with threats.

(END VIDEO CLIP)

COSTELLO: The Commission is expected to issue its report by July 26.

John Kerry takes his campaign to Missouri today. He will speak at Westminster College. That is the very same college where Vice President Dick Cheney earlier this week blasted Kerry's judgment on national security. Last night, Kerry made an unscheduled stop in an African-American community in Harrisburg, Pennsylvania. He shook hands and signed autographs for people who waved at his motorcade. In the meantime, on Black Entertainment Television, Kerry invited rival Al Sharpton to speak at the Democratic National Convention.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: And he certainly earned the right to be part of this process. And I think he can be very, very helpful in motivating people and helping to register people and being part.

QUESTION: Will he speak at the convention?

KERRY: I hope so. Sure.

QUESTION: Is that your call or...

KERRY: That's my call.

QUESTION: OK. So if he wants to do it, he can do it?

KERRY: If he wants to do it, he can do it. If he wants to do it -- I'd like him to do it. I think he did a terrific job. I think he'll add something.

QUESTION: OK.

KERRY: So it's -- he doesn't have to -- there's no plea necessary.

QUESTION: OK.

KERRY: It's my invitation.

(END VIDEO CLIP)

COSTELLO: Your news, money, weather and sports.

It is 6:12 Eastern time.

Here's what's all new this morning.

After progress in talks, U.S. Marines said today they do plan to pull back from Fallujah into rural areas. No word on exactly when that will happen, though.

A jury has decided in favor of nine insurance firms, agreeing the Twin Towers attack was a single event. The verdict reduces by 50 percent the amount sought by the World Trade Center leaseholder.

In money news, it looks like being connected to the Internet will remain tax-free. The Senate votes to renew a ban on taxing Internet access. The tax ban is for four years. The House wants a permanent ban.

In sports, the Kentucky Derby kicks off with a new tradition on Saturday. Jockeys may now have ads plastered on their silks. A judge blocked a state rule banning jockeys from wearing ads during races, so gentlemen and ladies, start your horses.

I said that again for your benefit, Chad. He thinks that's funny for some reason.

MYERS: I do.

COSTELLO: In culture, Donald Trump is tying the knot for the third time. Trump has proposed to his long time girlfriend. He gave her a serious ring. We don't know how many carats, though. But I'm sure it's a doozy.

MYERS: Yes. She probably can't keep her hand up.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Time for a little business buzz right now.

Wall Street gets ready to Google.

Joya Dass has more on the story from the NASDAQ market site -- good morning.

JOYA DASS, CNN CORRESPONDENT: Good morning, Carol.

That's right, it is official. Google said yesterday that they are going to make a $2.7 billion initial public offering and this is one of the most hotly anticipated initial public offerings since the '90s, and maybe even Netscape, I think, is the last one to have this much hype.

Now, you notice something different here. They're already kind of setting a very unconventional tone in this stock offering. We don't know how many shares are going to be floated. And, more importantly, we don't know how much each share is going to be valued at. What Google is doing is they're doing somebody unconventional in the way that they're even setting the fair value market price for each share of Google. They're going to do an auction where informed buyers and sellers are going to actually going to be able to set what that price is going to be. This is really a means to an end for Google. The two former graduate students who started the company say that they want to make sure that Google gets to the masses. Normally, you or I wouldn't be able to get in on a stock offering. It's all who you know. They want to make sure that it gets into as many hands as the individual investors can get their hands on them.

So, Google also, the founders did a little tongue in check letter, if you will, an owners manual to shareholders, saying don't be evil, invest in this company for the long-term. And we're not a conventional company and we're never going to be one.

COSTELLO: Let's hope so, because they are refreshing, aren't they?

Joya Dass live from the NASDAQ market site.

This week, a Texas jury awarded $1 billion to the family of a woman who died after taking the now banned Fen-Phen diet drugs. Some legal experts say that award is not likely to stand. The drug maker is appealing. In the meantime, other diet pills remain popular despite possible bad side effects.

Our medical correspondent Elizabeth Cohen has more for you.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN CORRESPONDENT (voice-over): Karen Bowers (ph) says after failing on all sorts of diets, an experimental pill helped her go from 190 to 145 pounds in about a year.

KAREN BOWERS: And I lost 45 pounds. And I didn't -- that was without effort, without pain. It just melted away.

COHEN: Sounds great. But here's a diet pill reality check. Most of the people who took the drug weren't nearly as lucky as Karen. They were, for the most part, obese, and when they took the pill, called Rimonabant, and dieted for a year, they lost just 19 pounds. And the pill can have side effects. Some people became nauseated. Others developed upper respiratory infections. And, since it's an experimental drug, there can be side effects that no one yet knows about.

But Karen said she didn't mind taking the risks.

BOWERS: You'll end up dying from obesity anyway. And I was miserable. And I wanted to lose weight and so I'm willing to gamble.

COHEN: There are millions like her out there, willing to take risks to lose weight. Even when doctors reported that the diet drug Fen-Phen caused heart problems, people still demanded it. The FDA later took it off the market.

And people take the drug Xenical, even though many say it doesn't work that well, and it can cause embarrassing gastrointestinal problems.

Meridia, the only other FDA approved diet drug, can make your blood pressure go up. No one knows the long-term side effects of most diet drugs, because studies haven't been done yet. But that doesn't bother Karen Bowers. She gained back nearly half her weight when she went off Rimonabant and so she says she wants to go back on it and stay on it for life.

Elizabeth Cohen, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: Next, the fastest two minutes in sports.

This year the horses aren't all the talk of the Derby, though. Find out why the jockeys' silk has been at the center of controversy. And our DAYBREAK Photo of the Day. What is it? We'll tell you after a break.

(COMMERCIAL BREAK)

COSTELLO: Oh, yes, Ted Koppel will be on Anderson Cooper's show at 7:00 p.m. Eastern. And no doubt he'll be talking about his "Nightline" program tonight. It airs in most cities at 11:35 p.m. Eastern time.

MYERS: Right.

COSTELLO: And the big controversy -- Ted Koppel is going to honor the war dead by naming their names and showing their pictures. Sinclair Broadcasting, that owns seven stations which carry ABC, has decided not to show the "Nightline" program in their cities.

We've been soliciting your e-mails.

MYERS: And the whole thing was -- we read a bunch of it earlier -- we read some comments from Sinclair that they just don't think this is the way to do it. But...

COSTELLO: No, they think it's politically motivated.

MYERS: They think it's politically motivated.

COSTELLO: On the other hand, Sinclair executives donated to the Bush-Cheney campaign and did not donate any money to the Kerry camp.

MYERS: I'm so glad you said that, because Gus in Akron, not far from you, said: "You were quick to point out that several upper echelon members of Sinclair gave to the Bush campaign, but now many ABC bigwigs gave to the Kerry campaign."

COSTELLO: Good point.

MYERS: Don't know. There you go.

COSTELLO: This from Edwin in Toronto: "I don't care. I watch CNN. They can put whatever they like on that channel."

MYERS: There you go. There you go. Who was that from?

COSTELLO: That was from Edwin from Toronto.

MYERS: All right, we appreciate it.

COSTELLO: And this one: "What have we come to? A censored state for our own good? What does that sound like? Is anyone protesting? I am a faithful follower of "Nightline" and was looking forward to the salute to our fallen troops." That's from Karen.

MYERS: That's been the way it's been running. We've got about 250 e-mails this morning and that's pretty much the way it's running. "Disagree with Sinclair's decision to pull "Nightline" on the air. We owe it to our fallen to give them respect and recognition." That was from Nancy Moran (ph).

COSTELLO: This is from Thomas from Atlanta, Texas: "War is a terrible thing, bought by the old and paid for with the blood of the young. Those who die for their country should absolutely be honored and their faces and names should be indelibly impressed on all who have benefited from their sacrifice."

Thank you for the e-mails this morning.

Very interesting.

MYERS: Yes.

COSTELLO: Time now for our DAYBREAK Eye-Openers.

First, the big blow in New Mexico. Blowing dust shut down part of Interstate 40 -- you've been telling us about that, Chad.

MYERS: Yes.

COSTELLO: Well, it shut down other major roadways, as well, in southeastern New Mexico. Dust storms Wednesday and last week blamed for a fatal chain reaction traffic accident. Much the same story in Nevada, where strong winds kicked up dust storms, cutting visibility near zero in some areas.

In Florida, beware of Big Brother in one ritzy Palm Beach County town. Driving past waterfront mansions in Manalapan will put you on record. Did I pronounce that right?

MYERS: I don't know.

COSTELLO: I hope so.

High tech cameras will snap pictures of cars and license plates. A computer will run the tags against a criminal database.

And in California, a diver who got separated from his diving group was drifting about seven miles offshore when he was spotted by a Boy Scout on an excursion cruise.

(BEGIN VIDEO CLIP)

DAN CARLOCK, RESCUED DIVER: I started waving that tube and waving the other arm and blowing the hell out of the whistle.

ZACH MAYBERRY, BOY SCOUT: I had to look through a pair of binoculars to even see him because he was that far out. Everybody's saying I'm a hero. I don't -- to tell you the truth, I don't really care. All I really care about is that this guy is safe.

(END VIDEO CLIP)

COSTELLO: I hope he gets a new Boy Scout patch, though, don't you?

MYERS: Yes.

COSTELLO: Carlock floated for hours waiting for his diving buddies to come back for him, but they never did.

More than money will be riding on the Kentucky Derby tomorrow. Jockeys may be wearing advertising on their silks. A judge's ruling blocks a state ban on jockeys wearing ads.

Craig Hoffman of CNN affiliate WAVE in Louisville got some reaction to that ruling.

(BEGIN VIDEOTAPE)

CRAIG HOFFMAN, WAVE CORRESPONDENT (voice-over): Veteran Shane Sellers led the charge so that Kentucky jockeys can display their union patch. And some of those who sued can now wear advertiser logos on their pants or tunics.

SHANE SELLERS, JOCKEY: And it's showing that if we stick together, we can get things done in this -- in the industry. And I'm just so grateful. And I'm pretty lost for words. I mean, you know, I stuck my neck out on the line and we got this done and it's a great feeling.

HOFFMAN: Sellers alone stands to make $30,000 in sponsorship dollars Derby day. Jockeys can't step on Churchill Downs sponsors, but the judge's ruling gives them an opportunity they did not have before.

ROBBY ALBARADO, JOCKEY: It comes up, if an opportunity would arise, I would consider. Not to say that I would do it, but I'm sure I'll be wearing a guild patch.

PAT DAY, JOCKEY: And an opportunity to include some new sponsors into the game and get some new money in here and expand the horizons, if you would. And I see it as a good deal.

HOFFMAN (on camera): Kentucky Governor Ernie Fletcher, who formed the new horse racing authority, says it's time to put this issue aside and start working on new regulations to protect the traditions of the turf and give jockeys commercial opportunity.

(voice-over): Lawyers representing the jockeys say it's time for the governor to back those words with action.

CHRISTOPHER LASCH, JOCKEY'S GUILD ATTORNEY: You know, we hope that the authority will take to heart the judge's ruling and understand that their power is not all encompassing, that they have to respect the constitutional rights of these riders.

(END VIDEOTAPE)

COSTELLO: Interesting.

MYERS: Can you see it? He gets off the horse, yes, I want to thank the Home Depot horse man. He was great today. We gave him some Pepsi this morning and he really, really ran. I want to thank Goodyear. I want to thank -- oh, you just think, oh my, here we go.

COSTELLO: Everybody wants to make a buck.

MYERS: So, did you figure out what the picture was?

COSTELLO: I didn't, actually. I know it was flowers, but...

MYERS: Drew here from our, our little stage manager here, said it was probably the Run for the Roses roses. But, in fact, it was close. Carnations, a Maryland incarnation, in fact, that's what it says. This is from the Minneapolis Institute of Art's 21st annual Art In Bloom show. Three thousand carnations went into this one particular little display and there are many, many displays there. It lasts through Sunday. Get out and see it. A great -- a lot of work on those guys.

COSTELLO: And on the right hand side you saw the Andy Warhol rendition in carnations.

MYERS: It was the other side, right? What was that called?

COSTELLO: Yes.

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

Remember when you used to pop the tape in the VCR when there was something you wanted to watch on television? Well, coming up, the new wave of home entertainment. It's easier than you may think to get on this technology bandwagon.

Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Audrey Woods. I'm representing Mrs. Harrison.

UNIDENTIFIED MALE: Audrey Woods?

UNIDENTIFIED FEMALE: Right. Mrs. Harrison.

UNIDENTIFIED MALE: I've heard good things.

(END VIDEO CLIP)

COSTELLO: Some of your favorite stars heat up the big screen this weekend. We'll get a box office preview for you.

And a live report from the West Coast, where a show of another sort is scheduled for today -- Michael Jackson's arraignment in a California courtroom.

(COMMERCIAL BREAK)

COSTELLO: One year ago tomorrow, we heard the words "mission accomplished." Today, a democracy in transition, a country in turmoil.

This is DAYBREAK for Friday, April 30.

And good morning to you.

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

And good morning to you.

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

Let me bring you up to date.

U.S. Marines say they plan to pull back from Fallujah and have former Iraqi generals oversee an Iraqi force securing the city. CNN's Jane Arraf is reporting a similar deal is under way for Najaf.

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