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CNN Live At Daybreak

Escape of Thomas Hamill From His Captors; Foiled Terrorist Plot in Turkey

Aired May 03, 2004 - 05:00   ET

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


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


(BEGIN VIDEO CLIP)
KELLIE HAMILL, THOMAS HAMILL'S WIFE: And I want to thank everybody for the support that they have given us at this time. But he is fine. He's doing real well.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: Half a world away from Iraq, a wife welcomes news of her husband's escape from his captors.

It is Monday, May 3.

This is DAYBREAK.

And good morning to you.

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

Here are the latest headlines for you now.

The waiting almost over. Family and friends of the U.S. contractor who escaped his Iraqi captors breathe a sigh of relief. The wife of Thomas Hamill prepares to see him go and we do understand he has boarded a plane to Germany. We will keep you posted.

The highest ranking member of al Qaeda in U.S. custody before 9/11 is being sentenced today for stabbing a corrections officer. Mamdouh Mahmud Salim is expected to get more than 20 years in prison.

Israel's Likud Party defeats a proposal by Israeli Prime Minister Ariel Sharon to pull Jewish settlements out of Gaza and most of the West Bank. Despite the blow, the prime minister says he will not resign.

Mexico is recalling its ambassador to Cuba and ordering the Cuban ambassador to Mexico to leave. Mexico is upset with Cuba's human rights record.

In Turkey, CNN Turk reports police have foiled a bomb plot targeting a NATO summit in Istanbul next month. President Bush and other Western leaders are to attend that summit. Police have arrested 16 Islamic militants and seized training instructions from al Qaeda.

Let's head to the forecast center now and Chad -- good morning. BEN WEDEMAN, CNN CORRESPONDENT: Good morning, Carol. (WEATHER REPORT)

COSTELLO: More threats to U.S. soldiers in Iraq. Here's the situation report for you this morning. The main U.S. Army base in Najaf came under attack overnight. As many as 18 mortar rounds were fired at the base. No injuries reported.

The chairman of the joint chiefs of staff denies reports of widespread abuse of Iraqi prisoners. One soldier who is facing criminal charges plus the military police commander put the blame on U.S. military intelligence.

An attack on a U.S. military convoy Saturday night has killed two U.S. troops and an American soldier was wounded Sunday near Kirkuk. And coalition officials say Iraqi Major General Jasim Mohamed Saleh will not lead Iraqi forces taking over from Marines in Fallujah as offered. Officials say the general may have a role, but he will not oversee the force.

Well, the second time was the charm for Thomas Hamill. He's the truck driver from Mississippi who was taken hostage in Iraq on April 9, escaped once, was recaptured, escaped again, this time for good.

Live to Baghdad now and Ben Wedeman -- good morning, Ben. BEN WEDEMAN, CNN CORRESPONDENT: Yes, good morning, Carol.

Well, Thomas Hamill is on his way to a U.S. base in Germany right now. There he's going to receive a medical checkup and from there he will return to the United States.

Now, he appeared yesterday after spending 23 days in the custody of unknown kidnappers. He apparently was able to escape, somehow force his way out of the building where he was being held, ran about half a mile, where he found a U.S. patrol who then -- and then who took him back to their base and he was flown by helicopter to Baghdad.

Now, obviously coalition officials very heartened by this news, but there are still hostages at large. There's one American soldier. Keith Maupin is among the six people known to be held hostage at the moment. Six others are missing and eight hostages are known to have been killed by their captors.

Now, regarding the situation in Fallujah, we are told it is -- things are looking well for the U.S. forces in the area, that the Iraqi security force that was hastily assembled has now taken up positions in the southern sector of the city.

Now, the United States has appointed a former senior Iraqi Army intelligence officer, Mohammed Latif, to head the forces there. Initially they had tipped Jasim Saleh, also a former general in the Iraqi Army, to lead that force. However, questions have arisen about his role in the suppression of a bloody Shiite uprising in the southern part of Iraq in 1991.

Now, there does seem to be a somewhat general hesitation among this Iraqi force to confront the insurgents in Fallujah. Last night I was watching a live interview on Al Jazeera with General Saleh and he pointedly avoided saying that his forces were going to confront the insurgents. He said his top priority there is law and order and just bringing life back to normal for the residents of that city of 300,000.

Now, on the question of abuse of Iraqi prisoners at the Abu Ghraib Prison, run by the United States, a spokesman here in Baghdad said that six letters of reprimand and one of admonishment have been issued to those involved in the incident. This is separate from an ongoing criminal investigation -- Carol.

COSTELLO: Ben Wedeman live in Baghdad this morning.

Thomas Hamill's wife will hop on a plane today, too, the first leg of a trip to be reunited with her husband.

CNN's Bob Franken visited Hamill's hometown of Macon, Mississippi, where family and well wishers celebrated her freedom.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN CORRESPONDENT: Kellie Hamill is heading today to Houston, to Halliburton headquarters, on her way to meet up with her husband. That destination unknown. But first she had to come here to the courthouse, the Noxubee County Court Square, to share with her neighbors the exhilaration of finding out that after three weeks, her husband had escaped captivity in Iraq, the same neighbors that she had shared all the despair, all the uncertainty during that three weeks.

They had been, she said, there for her in her time of need. She wanted to be them in her time of celebration.

HAMILL: I want to thank everybody for the support that they have given us at this time. But he is fine. He's doing real well.

FRANKEN: The call had come to the family about 5:30 in the morning here in Macon, Mississippi and the word spread very quickly throughout the town. So there was a day of celebration. Kellie Hamill was kept busy dealing with various media requests, talking to the same news organizations that had spread the word about her concern after her husband had been picked up, had been taken into captivity.

He was a contract worker. He had gone because he needed to make the money here in a soft economy. But Kellie Hamill was very firm. She said he will be coming back, coming back to an entire community that embraced the family in their time of need and now embraces him on his return, which should be shortly. It'll be in the next week or so. He will be returned home as a hero with a parade.

Bob Franken, CNN, Macon, Mississippi.

(END VIDEOTAPE)

COSTELLO: And Thomas Hamill's friends and family will be guests tonight on CNN's "Larry King Live." You can catch that at 9:00 p.m. Eastern.

Well, the prison abuse scandal in Iraq is widening. The Army insists mistreatment of prisoners is not widespread, but the evidence appears to tell a different story.

Our Kathleen Koch reports the blame game is just getting started.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): Top Pentagon and coalition officials promised swift reaction to the alleged abuse of Iraqi prisoners as seen in graphic photos first aired by CBS.

DAN SENOR, COALITION SPOKESMAN: Whole careers will be ended. There will be criminal repercussions for those involved.

KOCH: But debate is growing over just who is responsible.

GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: Well, those individuals for starters. Then we'll find out if there's a systemic problem and other issues.

KOCH: Army reserve Brig. General, Janice Karpinski, in charge of the prison told newspapers she new nothing about the incidents until long afterwards. A March internal army investigation of the Abu Ghraib prison obtained by the "New Yorker" magazine finds a pattern of abuse at the prison. The journalist who wrote it said that the investigating officer did not find those acted alone.

SEYMOUR HERSH, NEW YORKER: He said he believes that the private contractors and the civilians, the CIA, paramilitary people and the military drove the actions of that prison.

KOCH: The family of one of the 6 U.S. soldiers facing charges related to the abuse cases released photo os of Staff Sergeant Chip Frederick and a journal he kept in Iraq. It catalogs the alleged abuse and his concerns about it, quote, "leaving inmates in their cell with clothes or in female underpants, handcuffing them to the door of their cell. I questioned this and the answer got was, this is how military intelligence wants it done." Another section says, "a prisoner died during interrogation, quote, "they stressed him out so bad that the man passed away. They put his body in a body bag and packed him on ice for approximately for 24 hours. The next day the medics came in an put his body on a stretcher, placed a fake IV in his arm and took him away."

The CIA inspector general and Pentagon are investigating one Abu Ghraib prison death. But a CIA spokesman said he did not know if this was the same incident.

Frederick's family says the fault lies higher than the GIs.

UNIDENTIFIED MALE: From the time he got there, he was worried about what was going on.

UNIDENTIFIED MALE: The United States government is now trying to sacrifice and use these six soldiers as scapegoats.

KOCH: One lawmaker warns no matter who is to blame, it's a costly scandal for the U.S.

SEN. JOE BIDEN (D) DELAWARE: This is the single most significant undermining act that's occurred in a decade in that region of the world in terms of our standing.

(END VIDEOTAPE)

COSTELLO: And as you heard Ben Wedeman report just a short time ago, six commissioned and non-commissioned Army officers have been reprimanded -- that is the most serious form of punishment -- in written form. We'll have more on that breaking development later on on DAYBREAK. And for more on the prisoner abuse story, be sure to catch Seymour Hersh of the "New Yorker" magazine. He will be on CNN's "American Morning." That comes your way about two hours from now, at 7:00 Eastern.

Hundreds of people are expected to attend a memorial service today in San Jose, California for former NFL player Pat Tillman. Tillman, as you know, was killed in action in Afghanistan on April 22. Today's service is one of several planned for this week. Also today, his family will announce details of the newly established Pat Tillman Foundation.

The death toll from a suspected Louisiana serial killer is on the rise. That tops our look at stories making news across America this Monday.

Over the weekend, Sean Gillis confessed to killing three more women. How do we know this? Well, his attorney says his client absolutely insisted on confessing. This brings his admitted total to eight women since 1994. Gillis has been charged with first degree murder. His attorney says he will ask the court for a psychological evaluation.

In Texas, more than 50 people were helped ashore after a party boat sank in deep water on Lake Travis. Officials say the revelers overloaded one end of the pontoon boat as it neared the state's only legal nude beach. Two people suffered minor injuries, while the others just got wet.

Remember Douglas Faneuil? He was the prosecution's star witness against Martha Stewart. Faneuil is dealing with his own legal troubles now. His sentencing is set for tomorrow on a misdemeanor charge stemming from the Stewart stock deal.

Searching for clues -- financial markets are wary as the Fed gets ready to meet tomorrow.

Echoes of John Kerry -- a veteran of the front lines in Iraq now leads a different fight.

And in Israel, a resounding rejection for Ariel Sharon. We take you live there. Our Matthew Chance will have more on the prime minister's stalled peace plan.

And got milk? Don't run to the store for a gallon, because you probably can't afford the gas for the milk.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:14 Eastern.

Here's what's all new this morning.

Celebrating in Macon, Mississippi. Friends and family of Thomas Hamill, the American civilian kidnapped last month in Iraq, celebrate his escape. He, by the way, is now on his way to Germany.

In Israel, Prime Minister Ariel Sharon says he is not resigning. That's after his Likud Party voted against his plan to pull Jewish settlements out of Gaza and parts of the West Bank.

In money news, the chain, the grocery store chain Winn Dixie, coming off a disappointing quarterly report, says it is closing 156 stores and cutting about 10,000 jobs. That's about 10 percent of its workforce.

In sports, the Associated Press is reporting Minnesota Timberwolves' forward Kevin Garnett will be named the NBA's most valuable player later today. It would be Garnett's first MVP award.

In culture, girl power rules. Make that mean girl power rules. "Mean Girls," the movie about high school cliques, was the weekend's top earning movie, pulling in $25 million -- Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines.

Thank you very much, Chad.

The cost of borrowing money has been unbelievably low for years, but some economists say that is about to change.

As CNN's Gerri Willis reports, some say the Fed is already laying the groundwork for higher interest rates.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT (voice-over): Jobs are growing, consumers are spending, even manufacturing is starting to turn around. But this good news could have a down side -- higher interest rates.

ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: The Federal Reserve recognizes that sustained prosperity requires the maintenance of price stability and will act as necessary to ensure that outcome. WILLIS: Translation -- the Federal Reserve will move sooner rather than later to stop inflation before it gets started by tightening monetary policy, which would lead to higher consumer interest rates. For consumers, that means paying more for cars, credit cards, home equity loans and, of course, mortgages.

Already, mortgage bankers have started pushing home loan rates higher, with dramatic consequences for buyers. Consider -- if you'd taken out a $300,000 home loan last June, when rates were at 45-year lows, your monthly mortgage payment would be $1,662. Today, it's $148 higher and more bad news could be on the way. Mortgage rates are expected to go as high as seven percent by year end.

In any event, consumers will want to keep an eye on any loan that has a variable rate. That means home equity lines of credit and variable rate credit cards. Even fixed rate card owners may see their fees rise.

GREG MCBRIDE, BANKRATE.COM: The best move you can make is to aggressively pay down that debt. The more debt you have on those credit cards when interest rates start to rise, the more debt you're going to be carrying uphill in the face of higher interest rates.

WILLIS: But it's not all bad news.

MARK ZANDI, ECONOMY.COM: For savers, rising rates are not a bad thing. I mean many older households with CDs have been hurt very badly in this low rate environment. There's no good CDs out there to be had. But with rising rates, many of these households, in a year or two, will be able to go out and purchase a CD at a rate that will look darned right attractive compared to the rates they're getting right now.

WILLIS (on camera): The bottom line -- pay down as much of your debt as possible and lock in low interest rates before they move higher. And keep your eyes peeled for higher prices. They could be a signal of more rate hikes to come.

Gerri Willis, CNN Financial News, New York.

(END VIDEOTAPE)

COSTELLO: Right now we want to get more on an alleged bomb plot against the NATO summit that's to take place in Istanbul, Turkey next month. Apparently 16 militants are under arrest linked to al Qaeda.

We have live on the phone Alphonso Van Marsh -- Alphonso, tell us more about this.

ALPHONSO VAN MARSH, CNN CORRESPONDENT: Yes, good morning.

That information comes from Turkish government officials in the town of Bursa. That's about three hours north of Istanbul. Now, it's also a concern because U.S. President George W. Bush is expected to come to Istanbul next month for that NATO summit you talked about. Turkish officials saying 16 people detained on alleged suspected terrorist activity, planning to bomb the summit next month in June.

Now, officials here say that it's been a year long investigation against these 16 and that when they arrested them or took them under detention, they found a CD-ROM with materials allegedly containing terrorist training materials -- three guns, as well as a pipe bomb -- Carol.

COSTELLO: And were these militants linked to al Qaeda, Alphonso?

VAN MARSH: Well, those details are still coming out as we speak. So far, Turkish officials are saying that the 16 that are detained were linked to Ansar al-Islam. Now, that's another group that has been alleged to have links, very wide ranging links, to al Qaeda. But it's still not clear at this point if these are direct al Qaeda links. But either way, Turkish officials saying that they were planning suspected terrorist activities that would have targeted the very NATO summit being held here in Istanbul in just a few weeks.

COSTELLO: Alphonso Van Marsh reporting live for us from Istanbul, Turkey this morning.

Coming up next on DAYBREAK, he's a man on a mission.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's a motivation to tell the truth. I don't feel like an accurate picture is being displayed.

(END VIDEO CLIP)

COSTELLO: He led his troops into battle in Iraq. Now he's out in front of a controversial issue.

Plus...

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: You've heard some of the titles -- "Big Lies," "The Lies of George W. Bush," "The Lies and the Lying Liars Who Tell Them."

(END VIDEO CLIP)

COSTELLO: Laughapalooza on Capitol Hill. Did you like that, Chad, Laughapalooza?

MYERS: Yes.

COSTELLO: Yes, we've got the side splitting details just ahead.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW")

JAY LENO, "THE TONIGHT SHOW" HOST: You know, I watched Condoleezza Rice testify a couple of weeks ago. And as I watched her, I said to myself, you know, I've seen that hairstyle before. Where have I seen it? Can we put that picture up? I tried, I couldn't place it. Put that up. There it is. Where did I see it? And then I remembered, oh, yes, that's where I'd seen it. Yes, that's where I'd seen it. Yes. I knew it'd seen it before.

(END VIDEO CLIP)

COSTELLO: You know, she has a sense of humor.

MYERS: Yes, she even laughed at it.

COSTELLO: Yes.

MYERS: That was pretty good.

COSTELLO: I'd be really upset, I think.

MYERS: It was the little flippy things in the back, I think.

COSTELLO: Yes. Not the...

MYERS: Yes. It wasn't the comb over.

COSTELLO: That was from the White House Correspondents Dinner, which took place over the weekend. And, of course, there are time for many light moments. President Bush also spoke and he was funny at times, too. But then he turned things rather serious, paying homage to the journalists who died overseas covering the war.

MYERS: Of course.

COSTELLO: And...

MYERS: You said it's a prestigious thing to go to. I had no idea.

COSTELLO: Oh, yes.

MYERS: Yes. It's like...

COSTELLO: People clamor to go to that.

MYERS: ... a bunch of reporters sitting around having dinner.

COSTELLO: No, it's more than that...

MYERS: No?

COSTELLO: ... because correspondents will invite special guests.

MYERS: Ah!

COSTELLO: And supposedly the correspondents invite the special guests to try to get information for future stories. But some correspondents kind of take advantage of it because some brought Drew Barrymore and Ben Affleck. And I don't know how... MYERS: Well, if I was going to bring someone, I'd bring Drew Barrymore, OK?

COSTELLO: Point taken.

MYERS: I'm not going to invite Ralph Nader. But he was there.

COSTELLO: Yes, he was there.

MYERS: He was there.

COSTELLO: And that was...

MYERS: Ben Affleck was there.

COSTELLO: Exactly.

MYERS: Who else was there? Drew Carey was there.

COSTELLO: Henry Kissinger.

MYERS: Yes.

COSTELLO: So that would be a good person to take to get some stories, some fodder for future stories.

MYERS: That would be -- absolutely.

COSTELLO: Yes.

MYERS: You want him at your table.

COSTELLO: On the campaign trail -- let's continue on a Washington theme, shall we? President Bush hits the road today for the first bus tour of his reelection bid. The president's two day trip will take him to Michigan and to Ohio. His first stop will be this morning in Niles, Michigan, where he'll take part in a town hall style forum. Aides say his message will center on the economy, jobs and keeping the country safe.

John Kerry will attend a fundraiser in Minnesota tonight. He's also launching new television commercials this week about his biography and platform. It's part of a $25 million month long advertising blitz.

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

Charges and counter-charges are flying in the alleged abuse of Iraqi prisoners by U.S. troops. We're going to get the latest live for you out of Baghdad.

Ariel Sharon gets slammed by his own party. Why Israel's prime minister says resignation is not in the cards. We take you live to Jerusalem straight ahead.

And got milk? It's going to cost you. Later this hour, the scoop on why the white stuff is in short supply.

This is DAYBREAK for Monday.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: You probably recognize the Aflac duck.

UNIDENTIFIED MALE: Aflac!

UNIDENTIFIED MALE: But do you know what the company actually does? The American Family Life Assurance Company insures more than 40 million people worldwide, with supplemental medical policies covering special conditions like cancer. Heading up the Fortune 500 company is Daniel Amos. During his 13 year tenure as CEO, revenues have grown from almost $3 billion to over $11 billion as of last year.

Amos says the key to running a thriving company is the ability to stay focused.

DANIEL P. AMOS, CHAIRMAN & CEO, AFLAC INC.: Come up with a strategic plan and don't vary from the plan. You constantly revise it and look at it, but you stick with that plan and never lose focus.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired May 3, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
KELLIE HAMILL, THOMAS HAMILL'S WIFE: And I want to thank everybody for the support that they have given us at this time. But he is fine. He's doing real well.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: Half a world away from Iraq, a wife welcomes news of her husband's escape from his captors.

It is Monday, May 3.

This is DAYBREAK.

And good morning to you.

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

Here are the latest headlines for you now.

The waiting almost over. Family and friends of the U.S. contractor who escaped his Iraqi captors breathe a sigh of relief. The wife of Thomas Hamill prepares to see him go and we do understand he has boarded a plane to Germany. We will keep you posted.

The highest ranking member of al Qaeda in U.S. custody before 9/11 is being sentenced today for stabbing a corrections officer. Mamdouh Mahmud Salim is expected to get more than 20 years in prison.

Israel's Likud Party defeats a proposal by Israeli Prime Minister Ariel Sharon to pull Jewish settlements out of Gaza and most of the West Bank. Despite the blow, the prime minister says he will not resign.

Mexico is recalling its ambassador to Cuba and ordering the Cuban ambassador to Mexico to leave. Mexico is upset with Cuba's human rights record.

In Turkey, CNN Turk reports police have foiled a bomb plot targeting a NATO summit in Istanbul next month. President Bush and other Western leaders are to attend that summit. Police have arrested 16 Islamic militants and seized training instructions from al Qaeda.

Let's head to the forecast center now and Chad -- good morning. BEN WEDEMAN, CNN CORRESPONDENT: Good morning, Carol. (WEATHER REPORT)

COSTELLO: More threats to U.S. soldiers in Iraq. Here's the situation report for you this morning. The main U.S. Army base in Najaf came under attack overnight. As many as 18 mortar rounds were fired at the base. No injuries reported.

The chairman of the joint chiefs of staff denies reports of widespread abuse of Iraqi prisoners. One soldier who is facing criminal charges plus the military police commander put the blame on U.S. military intelligence.

An attack on a U.S. military convoy Saturday night has killed two U.S. troops and an American soldier was wounded Sunday near Kirkuk. And coalition officials say Iraqi Major General Jasim Mohamed Saleh will not lead Iraqi forces taking over from Marines in Fallujah as offered. Officials say the general may have a role, but he will not oversee the force.

Well, the second time was the charm for Thomas Hamill. He's the truck driver from Mississippi who was taken hostage in Iraq on April 9, escaped once, was recaptured, escaped again, this time for good.

Live to Baghdad now and Ben Wedeman -- good morning, Ben. BEN WEDEMAN, CNN CORRESPONDENT: Yes, good morning, Carol.

Well, Thomas Hamill is on his way to a U.S. base in Germany right now. There he's going to receive a medical checkup and from there he will return to the United States.

Now, he appeared yesterday after spending 23 days in the custody of unknown kidnappers. He apparently was able to escape, somehow force his way out of the building where he was being held, ran about half a mile, where he found a U.S. patrol who then -- and then who took him back to their base and he was flown by helicopter to Baghdad.

Now, obviously coalition officials very heartened by this news, but there are still hostages at large. There's one American soldier. Keith Maupin is among the six people known to be held hostage at the moment. Six others are missing and eight hostages are known to have been killed by their captors.

Now, regarding the situation in Fallujah, we are told it is -- things are looking well for the U.S. forces in the area, that the Iraqi security force that was hastily assembled has now taken up positions in the southern sector of the city.

Now, the United States has appointed a former senior Iraqi Army intelligence officer, Mohammed Latif, to head the forces there. Initially they had tipped Jasim Saleh, also a former general in the Iraqi Army, to lead that force. However, questions have arisen about his role in the suppression of a bloody Shiite uprising in the southern part of Iraq in 1991.

Now, there does seem to be a somewhat general hesitation among this Iraqi force to confront the insurgents in Fallujah. Last night I was watching a live interview on Al Jazeera with General Saleh and he pointedly avoided saying that his forces were going to confront the insurgents. He said his top priority there is law and order and just bringing life back to normal for the residents of that city of 300,000.

Now, on the question of abuse of Iraqi prisoners at the Abu Ghraib Prison, run by the United States, a spokesman here in Baghdad said that six letters of reprimand and one of admonishment have been issued to those involved in the incident. This is separate from an ongoing criminal investigation -- Carol.

COSTELLO: Ben Wedeman live in Baghdad this morning.

Thomas Hamill's wife will hop on a plane today, too, the first leg of a trip to be reunited with her husband.

CNN's Bob Franken visited Hamill's hometown of Macon, Mississippi, where family and well wishers celebrated her freedom.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN CORRESPONDENT: Kellie Hamill is heading today to Houston, to Halliburton headquarters, on her way to meet up with her husband. That destination unknown. But first she had to come here to the courthouse, the Noxubee County Court Square, to share with her neighbors the exhilaration of finding out that after three weeks, her husband had escaped captivity in Iraq, the same neighbors that she had shared all the despair, all the uncertainty during that three weeks.

They had been, she said, there for her in her time of need. She wanted to be them in her time of celebration.

HAMILL: I want to thank everybody for the support that they have given us at this time. But he is fine. He's doing real well.

FRANKEN: The call had come to the family about 5:30 in the morning here in Macon, Mississippi and the word spread very quickly throughout the town. So there was a day of celebration. Kellie Hamill was kept busy dealing with various media requests, talking to the same news organizations that had spread the word about her concern after her husband had been picked up, had been taken into captivity.

He was a contract worker. He had gone because he needed to make the money here in a soft economy. But Kellie Hamill was very firm. She said he will be coming back, coming back to an entire community that embraced the family in their time of need and now embraces him on his return, which should be shortly. It'll be in the next week or so. He will be returned home as a hero with a parade.

Bob Franken, CNN, Macon, Mississippi.

(END VIDEOTAPE)

COSTELLO: And Thomas Hamill's friends and family will be guests tonight on CNN's "Larry King Live." You can catch that at 9:00 p.m. Eastern.

Well, the prison abuse scandal in Iraq is widening. The Army insists mistreatment of prisoners is not widespread, but the evidence appears to tell a different story.

Our Kathleen Koch reports the blame game is just getting started.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): Top Pentagon and coalition officials promised swift reaction to the alleged abuse of Iraqi prisoners as seen in graphic photos first aired by CBS.

DAN SENOR, COALITION SPOKESMAN: Whole careers will be ended. There will be criminal repercussions for those involved.

KOCH: But debate is growing over just who is responsible.

GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: Well, those individuals for starters. Then we'll find out if there's a systemic problem and other issues.

KOCH: Army reserve Brig. General, Janice Karpinski, in charge of the prison told newspapers she new nothing about the incidents until long afterwards. A March internal army investigation of the Abu Ghraib prison obtained by the "New Yorker" magazine finds a pattern of abuse at the prison. The journalist who wrote it said that the investigating officer did not find those acted alone.

SEYMOUR HERSH, NEW YORKER: He said he believes that the private contractors and the civilians, the CIA, paramilitary people and the military drove the actions of that prison.

KOCH: The family of one of the 6 U.S. soldiers facing charges related to the abuse cases released photo os of Staff Sergeant Chip Frederick and a journal he kept in Iraq. It catalogs the alleged abuse and his concerns about it, quote, "leaving inmates in their cell with clothes or in female underpants, handcuffing them to the door of their cell. I questioned this and the answer got was, this is how military intelligence wants it done." Another section says, "a prisoner died during interrogation, quote, "they stressed him out so bad that the man passed away. They put his body in a body bag and packed him on ice for approximately for 24 hours. The next day the medics came in an put his body on a stretcher, placed a fake IV in his arm and took him away."

The CIA inspector general and Pentagon are investigating one Abu Ghraib prison death. But a CIA spokesman said he did not know if this was the same incident.

Frederick's family says the fault lies higher than the GIs.

UNIDENTIFIED MALE: From the time he got there, he was worried about what was going on.

UNIDENTIFIED MALE: The United States government is now trying to sacrifice and use these six soldiers as scapegoats.

KOCH: One lawmaker warns no matter who is to blame, it's a costly scandal for the U.S.

SEN. JOE BIDEN (D) DELAWARE: This is the single most significant undermining act that's occurred in a decade in that region of the world in terms of our standing.

(END VIDEOTAPE)

COSTELLO: And as you heard Ben Wedeman report just a short time ago, six commissioned and non-commissioned Army officers have been reprimanded -- that is the most serious form of punishment -- in written form. We'll have more on that breaking development later on on DAYBREAK. And for more on the prisoner abuse story, be sure to catch Seymour Hersh of the "New Yorker" magazine. He will be on CNN's "American Morning." That comes your way about two hours from now, at 7:00 Eastern.

Hundreds of people are expected to attend a memorial service today in San Jose, California for former NFL player Pat Tillman. Tillman, as you know, was killed in action in Afghanistan on April 22. Today's service is one of several planned for this week. Also today, his family will announce details of the newly established Pat Tillman Foundation.

The death toll from a suspected Louisiana serial killer is on the rise. That tops our look at stories making news across America this Monday.

Over the weekend, Sean Gillis confessed to killing three more women. How do we know this? Well, his attorney says his client absolutely insisted on confessing. This brings his admitted total to eight women since 1994. Gillis has been charged with first degree murder. His attorney says he will ask the court for a psychological evaluation.

In Texas, more than 50 people were helped ashore after a party boat sank in deep water on Lake Travis. Officials say the revelers overloaded one end of the pontoon boat as it neared the state's only legal nude beach. Two people suffered minor injuries, while the others just got wet.

Remember Douglas Faneuil? He was the prosecution's star witness against Martha Stewart. Faneuil is dealing with his own legal troubles now. His sentencing is set for tomorrow on a misdemeanor charge stemming from the Stewart stock deal.

Searching for clues -- financial markets are wary as the Fed gets ready to meet tomorrow.

Echoes of John Kerry -- a veteran of the front lines in Iraq now leads a different fight.

And in Israel, a resounding rejection for Ariel Sharon. We take you live there. Our Matthew Chance will have more on the prime minister's stalled peace plan.

And got milk? Don't run to the store for a gallon, because you probably can't afford the gas for the milk.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:14 Eastern.

Here's what's all new this morning.

Celebrating in Macon, Mississippi. Friends and family of Thomas Hamill, the American civilian kidnapped last month in Iraq, celebrate his escape. He, by the way, is now on his way to Germany.

In Israel, Prime Minister Ariel Sharon says he is not resigning. That's after his Likud Party voted against his plan to pull Jewish settlements out of Gaza and parts of the West Bank.

In money news, the chain, the grocery store chain Winn Dixie, coming off a disappointing quarterly report, says it is closing 156 stores and cutting about 10,000 jobs. That's about 10 percent of its workforce.

In sports, the Associated Press is reporting Minnesota Timberwolves' forward Kevin Garnett will be named the NBA's most valuable player later today. It would be Garnett's first MVP award.

In culture, girl power rules. Make that mean girl power rules. "Mean Girls," the movie about high school cliques, was the weekend's top earning movie, pulling in $25 million -- Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines.

Thank you very much, Chad.

The cost of borrowing money has been unbelievably low for years, but some economists say that is about to change.

As CNN's Gerri Willis reports, some say the Fed is already laying the groundwork for higher interest rates.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT (voice-over): Jobs are growing, consumers are spending, even manufacturing is starting to turn around. But this good news could have a down side -- higher interest rates.

ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: The Federal Reserve recognizes that sustained prosperity requires the maintenance of price stability and will act as necessary to ensure that outcome. WILLIS: Translation -- the Federal Reserve will move sooner rather than later to stop inflation before it gets started by tightening monetary policy, which would lead to higher consumer interest rates. For consumers, that means paying more for cars, credit cards, home equity loans and, of course, mortgages.

Already, mortgage bankers have started pushing home loan rates higher, with dramatic consequences for buyers. Consider -- if you'd taken out a $300,000 home loan last June, when rates were at 45-year lows, your monthly mortgage payment would be $1,662. Today, it's $148 higher and more bad news could be on the way. Mortgage rates are expected to go as high as seven percent by year end.

In any event, consumers will want to keep an eye on any loan that has a variable rate. That means home equity lines of credit and variable rate credit cards. Even fixed rate card owners may see their fees rise.

GREG MCBRIDE, BANKRATE.COM: The best move you can make is to aggressively pay down that debt. The more debt you have on those credit cards when interest rates start to rise, the more debt you're going to be carrying uphill in the face of higher interest rates.

WILLIS: But it's not all bad news.

MARK ZANDI, ECONOMY.COM: For savers, rising rates are not a bad thing. I mean many older households with CDs have been hurt very badly in this low rate environment. There's no good CDs out there to be had. But with rising rates, many of these households, in a year or two, will be able to go out and purchase a CD at a rate that will look darned right attractive compared to the rates they're getting right now.

WILLIS (on camera): The bottom line -- pay down as much of your debt as possible and lock in low interest rates before they move higher. And keep your eyes peeled for higher prices. They could be a signal of more rate hikes to come.

Gerri Willis, CNN Financial News, New York.

(END VIDEOTAPE)

COSTELLO: Right now we want to get more on an alleged bomb plot against the NATO summit that's to take place in Istanbul, Turkey next month. Apparently 16 militants are under arrest linked to al Qaeda.

We have live on the phone Alphonso Van Marsh -- Alphonso, tell us more about this.

ALPHONSO VAN MARSH, CNN CORRESPONDENT: Yes, good morning.

That information comes from Turkish government officials in the town of Bursa. That's about three hours north of Istanbul. Now, it's also a concern because U.S. President George W. Bush is expected to come to Istanbul next month for that NATO summit you talked about. Turkish officials saying 16 people detained on alleged suspected terrorist activity, planning to bomb the summit next month in June.

Now, officials here say that it's been a year long investigation against these 16 and that when they arrested them or took them under detention, they found a CD-ROM with materials allegedly containing terrorist training materials -- three guns, as well as a pipe bomb -- Carol.

COSTELLO: And were these militants linked to al Qaeda, Alphonso?

VAN MARSH: Well, those details are still coming out as we speak. So far, Turkish officials are saying that the 16 that are detained were linked to Ansar al-Islam. Now, that's another group that has been alleged to have links, very wide ranging links, to al Qaeda. But it's still not clear at this point if these are direct al Qaeda links. But either way, Turkish officials saying that they were planning suspected terrorist activities that would have targeted the very NATO summit being held here in Istanbul in just a few weeks.

COSTELLO: Alphonso Van Marsh reporting live for us from Istanbul, Turkey this morning.

Coming up next on DAYBREAK, he's a man on a mission.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's a motivation to tell the truth. I don't feel like an accurate picture is being displayed.

(END VIDEO CLIP)

COSTELLO: He led his troops into battle in Iraq. Now he's out in front of a controversial issue.

Plus...

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: You've heard some of the titles -- "Big Lies," "The Lies of George W. Bush," "The Lies and the Lying Liars Who Tell Them."

(END VIDEO CLIP)

COSTELLO: Laughapalooza on Capitol Hill. Did you like that, Chad, Laughapalooza?

MYERS: Yes.

COSTELLO: Yes, we've got the side splitting details just ahead.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW")

JAY LENO, "THE TONIGHT SHOW" HOST: You know, I watched Condoleezza Rice testify a couple of weeks ago. And as I watched her, I said to myself, you know, I've seen that hairstyle before. Where have I seen it? Can we put that picture up? I tried, I couldn't place it. Put that up. There it is. Where did I see it? And then I remembered, oh, yes, that's where I'd seen it. Yes, that's where I'd seen it. Yes. I knew it'd seen it before.

(END VIDEO CLIP)

COSTELLO: You know, she has a sense of humor.

MYERS: Yes, she even laughed at it.

COSTELLO: Yes.

MYERS: That was pretty good.

COSTELLO: I'd be really upset, I think.

MYERS: It was the little flippy things in the back, I think.

COSTELLO: Yes. Not the...

MYERS: Yes. It wasn't the comb over.

COSTELLO: That was from the White House Correspondents Dinner, which took place over the weekend. And, of course, there are time for many light moments. President Bush also spoke and he was funny at times, too. But then he turned things rather serious, paying homage to the journalists who died overseas covering the war.

MYERS: Of course.

COSTELLO: And...

MYERS: You said it's a prestigious thing to go to. I had no idea.

COSTELLO: Oh, yes.

MYERS: Yes. It's like...

COSTELLO: People clamor to go to that.

MYERS: ... a bunch of reporters sitting around having dinner.

COSTELLO: No, it's more than that...

MYERS: No?

COSTELLO: ... because correspondents will invite special guests.

MYERS: Ah!

COSTELLO: And supposedly the correspondents invite the special guests to try to get information for future stories. But some correspondents kind of take advantage of it because some brought Drew Barrymore and Ben Affleck. And I don't know how... MYERS: Well, if I was going to bring someone, I'd bring Drew Barrymore, OK?

COSTELLO: Point taken.

MYERS: I'm not going to invite Ralph Nader. But he was there.

COSTELLO: Yes, he was there.

MYERS: He was there.

COSTELLO: And that was...

MYERS: Ben Affleck was there.

COSTELLO: Exactly.

MYERS: Who else was there? Drew Carey was there.

COSTELLO: Henry Kissinger.

MYERS: Yes.

COSTELLO: So that would be a good person to take to get some stories, some fodder for future stories.

MYERS: That would be -- absolutely.

COSTELLO: Yes.

MYERS: You want him at your table.

COSTELLO: On the campaign trail -- let's continue on a Washington theme, shall we? President Bush hits the road today for the first bus tour of his reelection bid. The president's two day trip will take him to Michigan and to Ohio. His first stop will be this morning in Niles, Michigan, where he'll take part in a town hall style forum. Aides say his message will center on the economy, jobs and keeping the country safe.

John Kerry will attend a fundraiser in Minnesota tonight. He's also launching new television commercials this week about his biography and platform. It's part of a $25 million month long advertising blitz.

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

Charges and counter-charges are flying in the alleged abuse of Iraqi prisoners by U.S. troops. We're going to get the latest live for you out of Baghdad.

Ariel Sharon gets slammed by his own party. Why Israel's prime minister says resignation is not in the cards. We take you live to Jerusalem straight ahead.

And got milk? It's going to cost you. Later this hour, the scoop on why the white stuff is in short supply.

This is DAYBREAK for Monday.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: You probably recognize the Aflac duck.

UNIDENTIFIED MALE: Aflac!

UNIDENTIFIED MALE: But do you know what the company actually does? The American Family Life Assurance Company insures more than 40 million people worldwide, with supplemental medical policies covering special conditions like cancer. Heading up the Fortune 500 company is Daniel Amos. During his 13 year tenure as CEO, revenues have grown from almost $3 billion to over $11 billion as of last year.

Amos says the key to running a thriving company is the ability to stay focused.

DANIEL P. AMOS, CHAIRMAN & CEO, AFLAC INC.: Come up with a strategic plan and don't vary from the plan. You constantly revise it and look at it, but you stick with that plan and never lose focus.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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