Return to Transcripts main page

American Morning

American Beheaded; Interview With Senator Carl Levin; Caught by Web

Aired May 12, 2004 - 9:00   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.


ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody. There are other stories that we're following as well this morning. Lots to cover in that Iraq prisoner abuse story.

U.S. senators today are going to view more photographs of the abuse under some pretty high security conditions. We're going to talk with one of them, Senator Carl Levin, about that controversy this morning.

BILL HEMMER, CNN ANCHOR: Also this hour, citizen justice in Florida, and it's working apparently. We'll talk to a man who took matters into his own hands, using the Internet to capture the man responsible for a deadly crash. We'll get to that this hour.

O'BRIEN: His brother-in-law was killed in that crash. What a sad story, and what incredible luck he ended up having.

HEMMER: He set up a Web site or something to capture the guy?

O'BRIEN: Yes, it's a great story. So we'll have that this morning, as well.

Mr. Cafferty, good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

The question we're entertaining this morning is whether the decapitation murder of that American citizen at the hands of five hooded terrorist goons has changed the debate over whether or not to release additional photographs and perhaps video of alleged Iraqi prisoner abuse. A lot of people think it's changed a lot, actually -- AM@CNN.com.

HEMMER: You're getting a huge response, aren't you?

CAFFERTY: Lots and lots of mail, yes.

O'BRIEN: All right, Jack. Thank you.

CAFFERTY: Sure.

O'BRIEN: Well, U.S. officials say murdered 26-year-old American Nicholas Berg was told to leave Iraq but apparently ignored the warning. Berg's beheading was shown yesterday on an al Qaeda Web site -- a Web site, rather, that was linked to al Qaeda. He was in Iraq working on telecommunication towers when he was taken hostage. And the last time his family heard anything from him was on April 9.

This morning, we're joined by a spokesman for the Berg family, their neighbor, Bruce Hauser. He is in West Chester, Pennsylvania.

Mr. Hauser, thank you so much for talking with us this morning. And I must start by telling you words I think can not adequately express just how horrified and how sad we are for that family today. So thank you for taking the time to speak with us.

BRUCE HAUSER, BERG FAMILY FRIEND: Yes, good morning, Soledad. Thank you so much.

O'BRIEN: How are they doing? I mean, this is -- it's beyond the worst thing any parent could ever imagine happening to their child. How is the family coping today?

HAUSER: Well, the family is mighty devastated. I spoke with the family on numerous occasions yesterday, and it was just so sad to walk into the home and look at neighbors I have been living next to for all these years. Just, you know, I see them on a daily bases and see how happy this family was. And to have this happen to this family, this wasn't right for this family.

Nick Berg was the greatest young man you would ever want to meet. Very helpful to anyone in the community. I have known him ever since he was a toddler, watched him grow up to a decent young man. He played baseball in my backyard, helped me with different projects in the house, around the house.

The family and Nice are just great people. And my heart just goes out to this family.

One thing I'd like to say to America and across the world, let's keep this family in prayer. Let's hold this family up. Realistically, it was Nick Berg; it could have been one of our own.

And, really, Nick was just like one of my own. I called him my son because I watched him grow up from a child to an adult.

O'BRIEN: I've got to imagine it's not only hard for the family, but devastating for the community, as well.

HAUSER: Exactly.

O'BRIEN: How did the parents learn of his death? And how did they learn that, in fact, that the beheading was actually being seen on the Web site by many people?

HAUSER: I didn't learn until Monday afternoon. Nick's mother came over and informed me that they had found Nick's body and that he was, indeed, dead. That devastated me so bad.

I was working in New York, I dropped everything I had. And being the man I am, I didn't want to cry in front of his mother, so I went inside and cried, later on went back over to see the parents and broke down in front of the parent.

And this is really devastating, not only for the parents, but this whole neighborhood. The neighborhood met together last night for a vigil. There are probably 150 homes in this neighborhood, and everyone came together to show their support for not just the family, but Nick Berg. Nick was a great kid, a kid anyone would want to have for their own son.

O'BRIEN: I know that he owned a telecommunications company.

HAUSER: Yes he did, yes.

O'BRIEN: And so he had gone to Iraq, really, to get work for his company. Did he go -- did he go by himself? Give me a little more on the circumstances of what brought him into Iraq. And did he actually end up getting work?

HAUSER: I believe his first trip over he did work up an agreement where he had work. He came back home, and when he went back over, the work he had earlier agreed on fell through. So, knowing Nick, when he gets his mind made up, he is a great humanitarian, always wanting to help people. Nick is going to find something good that he can do for someone.

So I'm not surprised that when he went back over and found out that the agreement he originally had fell through, that he did not turn around and come back home. Nick was going to see how he can be a help to anyone.

O'BRIEN: Any idea when the body will be returned to his parents?

HAUSER: I'm not sure. I have not had a chance to meet with the parents. I plan to meet with them this morning again to offer my support and condolences. And I will get that information at that time.

O'BRIEN: Well, please add our voices to that, as well. Mr. Hauser, thanks for your time this morning.

HAUSER: Sure. Sure.

O'BRIEN: Terrible story to report.

HAUSER: Thank you so much. Once again, please pray for this family.

O'BRIEN: Believe me, we all are. Thanks.

HAUSER: Thank you. Thank you, Soledad.

O'BRIEN: Bill?

HEMMER: I've been reading a lot of his e-mails that he sent back to family and friends and business colleagues, too. It is quite remarkable to see how much he enjoyed his time there and so many positive things to say about the people in Iraq and the effort there also.

Other news this morning, radical Muslim cleric Muqtada al-Sadr says he wants his fighters to be part of a force patrolling the volatile cities of Najaf and Karbala and will only dissolve the Mehdi Army when there is an elected government in Iraq. Meanwhile, military officials say coalition soldiers exchanged fire with fighters loyal to the cleric during an ongoing operation in Karbala, a holy city in south central Iraq. Twenty-five insurgents killed in today's raid, several coalition troops hurt during that battle. Many, we are told, have returned to duty.

More money for the war in Iraq and Afghanistan is expected to be the focus of today's hearing before a Senate subcommittee. Defense Secretary Donald Rumsfeld earlier today, Joint Chiefs Chairman Richard Myers expected to appear at this hour. President Bush has put in a request for $25 billion more from Congress to continue the war effort in both countries.

NBA star Kobe Bryant has pleaded not guilty to one charge of sexual assault. Two days of hearings held in Eagle, Colorado, so far this week. A trial date has not yet been set, but lawyers for both sides have agreed to begin in the month of August. Bryant's accuser was not in court yesterday as she was on Monday earlier this week.

(WEATHER REPORT)

HEMMER: In the Iraqi prisoner abuse scandal, we're now hearing from Army Private Lynndie England in this country, who has been seen in some of the photos taken inside the prison. England says she was told by superiors to pose as she did in photographs like this one. Here is also what she told Denver's KCNC television.

(BEGIN VIDEO CLIP)

PFC LYNNDIE ENGLAND, U.S. ARMY: I was instructed by persons in higher rank to stand there, hold this leash, and look at the camera. And they took a picture for PSYOP, and that's all I know.

(END VIDEO CLIP)

HEMMER: England appearing subdued in that latest interviewed, compared to the photos, is now at Ft. Brag, North Carolina, and is said to be almost five months pregnant, as well.

U.S. senators have a chance to review more material depicting Iraqi prisoner abuse today in D.C. Democratic Senator Carl Levin in Michigan here to talk about this, as well as yesterday's abuse hearings, as well.

Senator, welcome back to AMERICAN MORNING.

SEN. CARL LEVIN (D), MICHIGAN: Good to be with you, Bill.

HEMMER: Will you be viewing these photos later today in the afternoon?

LEVIN: Yes.

HEMMER: And do you believe they should be released to the public?

LEVIN: I do. I think it's best that they get out and we get this behind us.

Obviously, they've got to be -- if they're going to be put out to the public, that's a decision for the Pentagon and for the White House, not for the Senate. But if they do decide to put these pictures out, obviously they ought to be treated somewhat carefully. They ought to cover up private parts, genitals. You don't have to see faces to understand what happened, but I think it's best to just be open, get it out, and then get on with the investigation.

HEMMER: Republican Senator Saxby Chambliss said a similar thing earlier. He said get it out and get it over with. Is there a majority of opinion that you know of among your Senate colleagues who feel the same way? And do you share any concern at all that if you put out more photos, it could put Americans more in harm's way in Iraq?

LEVIN: I think the only hope that we have, really, of redeeming ourselves here and winning back some of the support that this incident has cost us, if we act as an open society that will deal with problems openly, that will hold people accountable. I think that's what we are and what we should be, and that's one of the reasons that I think we will continue to have appeal to people around the world is that we will deal openly and honestly about the problems we have and not just hide them under the rug. And hopefully that will end up being a net plus. But I don't think we have any choice here.

HEMMER: Senator, let me take you back to yesterday. Major General Antonio Taguba on the Hill before many senators yesterday. Here's how he talked about what he found in that report, about high up the chain of command the abuse goes and who should be responsible. Listen here.

(BEGIN VIDEO CLIP)

MAJ. GEN. ANTONIO TAGUBA, U.S. ARMY: At the end of the day, a few soldiers and civilians conspired to abuse and conduct egregious acts of violence against detainees and other civilians outside the bounds of international law and the Geneva Convention.

(END VIDEO CLIP)

HEMMER: A few soldiers and civilians his conclusion. Does it end there?

LEVIN: Well, it may, but we have to take the trail wherever it leads us. We just heard on your show from Ms. England, who said that she was given direct orders to do what she did. We have to follow that chain up. Who gave her those orders and who knew about the person who was giving those orders? How far up in the command chain did it go?

But that's what investigations are about. That's what honesty and openness are about. That's what thoroughness is all about. And I hope that's what we as a people will continue to do. No matter how painful this thing is, it is one of the attractions of America that we deal with problems.

HEMMER: There are suggestions that it's not systemic based on the report that was released yesterday and made public in those hearings. You seem to indicate, though, you're still on the fence about this and you have not decided ultimately.

LEVIN: Oh, yes.

HEMMER: Why do you still have so much doubt at this point?

LEVIN: Well, these are not just spontaneous acts which occurred. That leash did not just appear there spontaneously. Those cameras didn't just appear there spontaneously.

There was a plan here to extract information from prisoners, and that plan involved not just those folks, those enlisted personnel. This plan, obviously, involved the intelligence people who were at that prison. There was a collaboration, according to General Taguba. I think he's right.

Just from the pictures, it shows that he's right, as well as the evidence already accumulated. And so we have got to see just how far up did this procedure get approved. Whether it was a written policy or not is dubious. No one is going to put this kind of policy in writing.

But clearly, there was a practice and procedure which was put in motion by the intelligence community. And they used here the military police to carry out what was a procedure they decided to use. That is what already appears clear to me.

HEMMER: Senator, the viewing is later today, 2:00 to 5:00 Eastern Time there in D.C. Perhaps tomorrow we can talk more about it. Carl Levin, thanks again for your time at Capitol Hill.

LEVIN: Thanks, Bill.

HEMMER: Soledad?

O'BRIEN: Former President Clinton came out to support Democrat John Kerry's race for the White House. Mr. Clinton was talking politics last night at a special fundraising concert at the legendary Apollo Theater in Harlem. He encouraged the audience to get behind Senator Kerry.

(BEGIN VIDEO CLIP)

WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: The only way we can lose is if we're lazy or dumb and we don't do what we're supposed to do. And we have a candidate we can be proud of who will do a good job for this country. And now the rest of us have to line up and do a good job for him and for our future.

(END VIDEO CLIP)

O'BRIEN: Mr. Clinton also talked about completing his memoir. The book, which is called "My Life," is about 900 pages long and will be in stores in late June.

HEMMER: Apparently he has had a tough time finishing that thing, huh?

O'BRIEN: Yes. He said writing was even worse than living it the first time, which was tough already.

HEMMER: Late June, stay tuned.

In a moment here, tracking down a hit and run suspect by creating a Web site. A novel approach that apparently has worked so far. That's next.

O'BRIEN: Also, a bizarre phenomenon in the Mexican sky. Details ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Rolando Pozo was angry the suspect in the hit and run death of his brother-in-law did not show up in court. When Carlos Giddings missed a second court date, well then Pozo decided to create a Web site devoted to catching him. It worked, believe it or not. A response to the Web site led police to Giddings, eventually.

Rolando Pozo joins us this morning from Tampa, Florida.

Nice to see you. Good morning to you and congratulations, I have to say.

ROLANDO POZO, FOUND SUSPECT WITH WEB SITE: Good morning, thanks a lot.

O'BRIEN: Your brother-in-law was killed in a crash and Carlos Giddings didn't show up, as we mentioned, for court. How much after that second court appearance that was missed did you say, what I need to do is create this Web site?

POZO: And actually, it wasn't even after the second court appearance. It was after the pretrial the Thursday before is when the idea was born. And then, you know, after he didn't show up Monday, I went home and immediately started working on the project.

O'BRIEN: What did you put on the Web site?

POZO: Everything I could find out about Carlos. My sister-in- law, Tammy Burton (ph), and I e-mailed each other back and forth, and we just got all the information together that we could get from the Hillsborough County State Sheriff's Office Web site, Tampa PD, everything we could find. And we put it all on the Web site. O'BRIEN: Did you realistically have an expectation that someone would log into your Web site, read through it and say, oh, yeah, I know where this guy is? I mean, that is sort of like the needle in the haystack thing, right?

POZO: It was totally a long shot from the beginning, but there was always a chance. And that's what we were hoping for, is one slight chance. And we got lucky; we got the chance of a lifetime.

O'BRIEN: Explain to me what happened with that chance in a lifetime, because you really got a little bit of publicity about this Web site, and that's kind of what led to the next thing, right?

POZO: Yes, absolutely. We were able to get the broadcast on local Channel 10 News at 6:00 on Thursday night. And it appears that someone had a change of heart at about 3:52 a.m., Thursday night, Friday morning, and sent in the tip that led us right to Carlos.

O'BRIEN: So someone e-mailed you and said I know where Carlos Giddings is?

POZO: Exactly.

O'BRIEN: And you took that information then to the police.

POZO: Exactly.

O'BRIEN: You gave them the address because I guess they were pretty specific. They gave you an address where you could find the guy.

POZO: Yes, they did.

O'BRIEN: The cops go there. What happened?

POZO: The cops walked into the room and there was a room full of adults there, and he asked everyone, "Is Carlos Giddings here?" And everybody acted like they don't know where he is, they haven't seen him in a long time. So the cop has the awareness to ask this child that's sitting on the floor, "Is Carlos here?" And the child turns around and points to the room that Carlos is at, and he was crawling out the back window as the police made their way around the back.

O'BRIEN: They were able to track him down.

POZO: Yes.

O'BRIEN: You have on your Web site now, "Three days." We caught him in three days.

POZO: Three days, yes.

O'BRIEN: Is this something that you recommend that other people who feel like justice has been denied or maybe temporarily deferred because of similar situations, that they do the same thing, do you think? POZO: Absolutely. I think that people should take an interactive role and help the authorities to bring people to justice. I don't know if it will work for them. We got lucky. But not trying anything will certainly not help.

O'BRIEN: Where does the case stand now?

POZO: We have no idea. We haven't been contacted since he's been taken in.

O'BRIEN: Well, congratulations, again. Good work...

POZO: Thank you very much.

O'BRIEN: ... I guess the police would say to you. Rolando Pozo joining us this morning. Thanks.

Bill?

HEMMER: A renowned UFO expert held news conference yesterday talking about a bizarre phenomenon over eastern Mexico. Some strange lights to look at here surrounding a Mexican military surveillance plane.

The 11 objects picked up by an inferred camera on the fifth of March. UFO experts, including Janie Massan (ph), says the objects were invisible to the naked eye, but they can be seen on videotape. Mexican Air Force officials confirm that they shot the tape along the east coast of Mexico.

O'BRIEN: Looks like a UFO to me.

HEMMER: Yes.

O'BRIEN: I don't know. Why not?

HEMMER: No chance.

O'BRIEN: Could be.

HEMMER: Sorry.

O'BRIEN: How do you know?

HEMMER: It could be the backside of a cargo plane or something.

O'BRIEN: Oh, really? Flying like that? Does that look like the backside of a courage plane to you?

HEMMER: It could be. Or...

O'BRIEN: You can't see it with your naked eye, but you can only see it on videotape?

HEMMER: All I'm saying is if they can get there, then can get down here. O'BRIEN: You are a real doubter on these things.

HEMMER: Are we finished?

O'BRIEN: Yes, I'm done. I'm quite through, thanks.

HEMMER: In a moment here, you talked with the spokesperson for the Berg family outside of Philadelphia. Tough, tough, tough times for them. More on what they're saying in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Jack's got the Question of the Day.

Good morning.

CAFFERTY: Hi, Soledad.

The debate about what to do with the additional pictures and video of the Iraqi prisoners is getting more complicated. Before yesterday, the debate was mostly about spin and political considerations. If the pictures were not released, would they eventually leak out anyway, would that cause additional embarrassment to the administration? If they were dumped on the public and press, would they create a second round of public revulsion and opposition to the war?

Because the terrorists claim the decapitation murder of an American was revenge for the abuse of Iraqi prisoners, all of a sudden the debate is a little different this morning. The question we're asking, should additional pictures now and video of the alleged prisoner abuse be released?

Patrick in Old Orchard, Maine, writes this: "As a long-standing and staunch opponent to the war in Iraq, the video and barbaric murder of Nick Berg has so overcome my anti-war beliefs and enraged me to the degree that I now believe in collective annihilation. The terrorists have totally misplayed any public sympathy they may have had from even the most die-hard pacifists. I can't believe I have become like them."

Doug in Florida writes: "It wouldn't surprise me there was some wag the dog going on here. Of course, that wouldn't be the popular thing to say. But you have to admit the White House desperately needs public outrage and support. After all, President Bush is in serious trouble in the polls."

Naomi in Bryan, Texas: "No, the additional pictures should not be released. How do you explain this to small children? I feel we can read between the lines. We're smart people, we don't need someone to draw us pictures. Where is the outrage from the rest of the world about what was done to Mr. Berg?"

Catherine in Del Rey Beach, Florida: "The pictures should never have been released to begin with. But let's keep in mind that Nicholas Berg's family would have no complaints if that's all that had happened to their son. Nor would the families of those killed or strung up over an Iraqi bridge, or Danny Pearl's widow, or the victims of September 11th."

And finally, VB in North Carolina: "We should release our military. We can worry about the hearts and minds of those who have them after we kill those with neither."

O'BRIEN: Wow, tough responses.

CAFFERTY: You talk about -- they pushed some buttons with that little act yesterday.

O'BRIEN: Really. All right, Jack. Thank you.

Still to come this morning, blockbuster or bust? A preview of the weekend's box office opening of Brad Pitt's "Troy." Plus, what you can look to from other summer flicks. All that, plus a look at the "Frasier" finale all ahead on "90-Second Pop."

Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back to AMERICAN MORNING.

O'BRIEN: And, in fact, it is just about half past the hour on this AMERICAN MORNING.

Coming up in just a few minutes, we'll take a look at some of the last words that were shared between Nick Berg and his family before he was murdered in Iraq. Looking at some of the e-mails that he sent, and they show a lot about what kind of young man he was.

HEMMER: Very revealing, too. Very positive, very hopeful for the future, and loved the countryside. He didn't care much for what he called the smoggy streets of Baghdad, but loved being in the north and in the east.

Also, less than 100 days before the summer games and there is still so much to do, we're told. We'll look at the security plans for Athens, Greece. Is the city ready? Can it assure the world the games are safe from terrorism?

We talked earlier about this, too. So we'll get to it.

O'BRIEN: Right. We'll see what they say.

Also, top stories this morning. British Prime Minister Tony Blair says despite the damage done by reports of mistreatment at Iraqi prisons, complaints about British troops have been addressed. Speaking before parliament, Blair says there is no abuse that such abuse ever took place.

(BEGIN VIDEO CLIP) TONY BLAIR, BRITISH PRIME MINISTER: There is no evidence whatever either of systematic abuse or of ministers or anyone else refusing to act on allegations of abuse in respect of detainees in British custody. On the contrary, the only evidence that is being presented are photographs that are almost certainly fake.

(END VIDEO CLIP)

O'BRIEN: The prime minister adds that any claims of abuse are now being investigated.

A police officer in Afghanistan claims he was abused while in coalition custody. The incident reportedly took place in Gardez and Bagram in August of 2003. According to the statement, the officer says he was stripped naked, photographed, kicked, and subjected to sexual taunting during his incarceration before he was released. The U.S. military is investigating.

A gallon of gas going to cost more than 2 bucks by some time next month. According to the Department of Energy, the national regular price for unleaded regular will top out at $2.03 in June. The current average, $1.94 a gallon, that's 45 cents more than a year ago.

Some stations in California are already charging more than $3 a gallon for premium. San Diego pays the highest average price. Self- serve regular costs $2.25 per gallon. A consumer group there is calling on Governor Schwarzenegger to declare a state of emergency.

And in France, it is opening day for the 57th Cannes Film Festival. A total of 18 films will battle it out for the grand prize. American film director Michael Moore will also premier his controversial film. It's called "Fahrenheit 911," which takes jabs at President Bush. There were fears that the festival will be disrupted by protests from striking French workers, but a last-minute deal, in fact, was worked out.

(WEATHER REPORT)

HEMMER: About 30 minutes ago here on AMERICAN MORNING, a family friend and neighbor of murdered American Nicholas Berg told us it is unclear when Berg's body will arrive back in the U.S. The beheading of the 26-year-old shown yesterday on an al Qaeda-linked Web site. Berg went to Iraq to find work rebuilding telecommunications towers. Family friend Bruce Hauser talked with us about the loss.

(BEGIN VIDEO CLIP)

HAUSER: Nick Berg was the greatest young man you would ever want to meet. Very helpful to anyone in the community. I have known him ever since he was a toddler, watched him grow up to a decent young man, played baseball in my backyard, helped me with different projects in the house, around the house.

The family and Nick, they're just great people. And my heart just goes out to this family.

(END VIDEO CLIP)

HEMMER: U.S. officials tell us that Berg was warned to leave that country, but he apparently ignored that warning. The last time his family heard from Berg was back on the ninth of April. Some reports say he was making his way out of Iraq at the time.

About 150 friends and neighbors held a candlelight vigil near the Berg home in West Chester, Pennsylvania, outside of Philadelphia. (AUDIO GAP) and the life of the young American.

(BEGIN VIDEOTAPE)

HEMMER (voice-over): Twenty-six-year-old Nicholas Berg went to Iraq to help rebuild the country and make his own company stronger. Nick was working on communication towers, many badly damaged from bombing and from sabotage. Those closest to him say he was smart, funny and committed, ideals that compelled him to travel to Iraq. These were his father's words before he learned of his son's death.

MICHAEL BERG, NICK BERG'S FATHER: He just really wanted to be part of something that was important. He supported the administration's being in Iraq, he supported everything that they were doing. And he wanted to help, and he wanted to help in a positive way by building rather than breaking down.

HEMMER: Through e-mail, Nick kept in touch with family, friends and business colleagues. When he was working in northern Iraq, he wrote, "Mosul is very calm, except for the Army convoys and checkpoints. You can't really tell there's an occupation. Baghdad every night, you hear IEDs and such, but here I've yet to hear or see anything except a few aged craters."

In another e-mail, he also mentioned the democratic reform starting to take hold. "The fact alone that an Iraqi man and I are just now sitting in a free and open Internet shop is unbelievable to most Iraqis."

But in the end, Nick was in Iraq to help rebuild its infrastructure. And he wrote about the freedom he experienced while doing his work.

"When I'm climbing these towers, I even get to go a few hours without some awkward America (ph) question. The answer to which is usually Sawa (ph), as you like."

Nick Berg, far too young to die, will never see the Iraq he tried to make better.

(END VIDEOTAPE)

HEMMER: We can also learn from those e-mails that his Arabic was decent. Oftentimes he would catch a bus or a taxi traveling solo throughout Iraq. He was also making progress with his business, too. The White House vowing that the killers in the Berg video will be hunted down and brought to justice.

Soledad?

O'BRIEN: Three months from now the Olympic games will open in an unprecedented atmosphere of concern over terrorism. Earlier this morning, I spoke with Denis Oswald in Athens Greece, the site of the games. He is the chairman of the Olympic Coordination Commission, and I asked him if Athens will, in fact, be ready to be in the spotlight come August.

(BEGIN VIDEOTAPE)

DENIS OSWALD, CHAIRMAN, IOC: Our assessment is very positive. You know, at some stage we had doubts about the completion of some of the infrastructures, including some spots (ph), venues, but I can really say that this problem is now behind us.

O'BRIEN: Obviously, when it comes to questions of progress, it's more than just buildings and structures. It's also how things are security-wise. How would you rate how the progress is on the security front? And can you guarantee that we will have a secure and safe Olympic games, not only for the athletes, but, of course, the visitors, as well?

OSWALD: Well, security has always been the highest priority for the IOC and for the Greek government as well. As you know, the Greek government has put a lot of efforts for security, and they are assisted by a group of seven so-called advisory nations which includes United States, Great Britain and other countries.

And I met with representatives of this group yesterday, and their assessment is really positive. All efforts will be made to make sure that the games are safe, not only for the athletes, but also for the visitors.

O'BRIEN: But then, of course, you had this recent spate of bombings in Athens, right outside a police station, actually. The public order minister said that it was essentially meaningless. And he said it was local anarchists who were to blame for that. Are you not concerned anymore about that kind of thing?

OSWALD: This happened in a residential area, not in an Olympic- secure-related venue. And we had the same information. That kind of small bombing happened from time to time in Greece. And here, nobody paid attention to that, and it doesn't change at all our assessment about security.

O'BRIEN: $1.2 billion, in fact, being spent on security. Some predict that number could actually go significantly higher. What is that money really going for? I mean, what are you buying with that money that you didn't buy in Sydney, for example?

OSWALD: It's partly related to the specific situation of Greece. They bode for about $800 million of technical equipment for security. And this is, of course, a part of the budget.

But, of course, this Olympic game 2004, the first summer games happening after September 11. And they will have to spend the money also to have forces from the army, from the police, and other groups to make sure that the games are successful, that the operation for security. But this amount is an indication that this aspect is taken very seriously by all the government and all the people involved.

(END VIDEOTAPE)

O'BRIEN: Denis Oswald of the IOC. The Olympic games will be held from August 13 to August 29.

Bill?

HEMMER: Soledad, I've been watching while that report was coming to us regarding Athens, Greece, watching the situation in Baghdad. A press conference under way with Brigadier General Kimmitt, Dan Senor, talking about just a few minutes ago their reaction to the beheading of Nick Berg.

Dan Senor called it "grotesque" and "brutal," saying, "Once again, our thoughts and prayers are with the Berg family back in Pennsylvania." We'll listen to this throughout the morning and bring you more news when we get it out of Baghdad.

In a moment, the markets back above 10,000. Andy tells us what is key today.

And saying goodbye to Frasier Crane after 11 long seasons.

Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: As we mentioned right before that commercial break, Dan Senor talking in Baghdad about the death and execution of Nick Berg. Listen now to Dan Senor minutes ago.

(BEGIN VIDEO CLIP)

DAN SENOR, COALITION SPOKESMAN: Sometimes the banality of terrorist acts speak for itself. I know there are images being broadcast, I know in this part of the world, and I think in the west, as well, of Mr. Berg's grotesque and brutal murder. And this is clearly and tragically one of those terrorist acts. Again, our thoughts and prayers are with the Berg family and their community.

(END VIDEO CLIP)

HEMMER: That community just outside of Philadelphia in Pennsylvania. Ironically, Nick Berg, some of the work he was doing there in Iraq took place just outside the Abu Ghraib prison, working on transmission towers there. Nick Berg, beheaded at the age of 26.

Soledad?

O'BRIEN: Medical news now. Something that's coming out might be helpful to people who cannot tolerate some of the popular pain killers, like Aleve or Celebrex. Dr. Sanjay Gupta at the CNN Center this morning to tell us about this new drug.

What's it called, Sanjay?

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: It's called Licofelone, and it's made by a German manufacturer called Merckle. But you're absolutely right. I mean, these other non-steroidal anti- inflammatory drugs known as NSAIDs in the medical community are very, very popular.

Take a look at the list there. Everyone has taken probably one of these drugs at some point or another, unless you have an allergy to them. If you have arthritis, you're even more likely to have taken them. About 70 million Americans do have arthritis and rely on these drugs, making it a $15 billion industry.

But here's the thing, Soledad. One of the big complications, side-effects, concerns about this drug is gastrointestinal disturbances or bleeding, even. And it's sort of the holy grail of developing one of these anti-inflammatory drugs that does not have gastrointestinal side-effects, and that's what a lot of people have been focused on. And that's why we're reporting this now to you.

The American Journal of Gastroenterology talking about Licofelone, and specifically its relationship to gastrointestinal side-effects. What they did was they compared this drug to a well known anti-inflammatory, Naperson, to try and figure out how the two stack, one against the other.

In a study of about 121 patients, what they found was that after four weeks, those on Licofelone had no ulcers, and those taking Naperson, about 20 percent of them had ulcers. In 12 weeks, the sort of difference was even more striking, about 12 times more likely to develop ulcers in those taking Naperson.

Bottom line, fewer ulcers, better gastric tolerability, at least in these small studies initially with Licofelone. Bad news about this is it won't be available in Europe until 2006 and will probably take even a bit longer here in the United States -- Soledad.

O'BRIEN: But what about the other bad news which is, of course, the question of side-effects?

GUPTA: Well, I mean, one of the side effects, obviously this gastrointestinal problem. But you also think about other side- effects. There are a whole list of them.

The ulcers, specifically, but you can also have kidney problems, high blood pressure. There was some concern a couple of years ago about Vioxx and its relationship to the heart. So those are all significant concerns, as well.

Bottom line, if you look at the numbers, though, specifically, how big a deal is this? Well, 107,000 people a year hospitalized from GI bleeding due to these anti-inflammatories -- 16,500 people die each year as well. So there are some concerns about this. The exciting thing about this drug is that Licofelone -- again, the name -- works a little bit differently than some of the other anti-inflammatories. We have to wait for some larger studies to see how it pans out in terms of those GI side-effects -- Soledad.

O'BRIEN: All right. You've got to wait for the drug, at least here in the U.S. Maybe waiting a little less time in Europe. All right. Sanjay, thanks.

GUPTA: Thank you.

O'BRIEN: Bill?

HEMMER: In a moment here, something new for Gameboy lovers. And this could be the time to buy a Playstation. Andy tells us why.

Back in a moment here. And what's that Dow doing around 10,000? Back in a moment after this.

(COMMERCIAL BREAK)

O'BRIEN: The big electronics entertainment expo kicks off today in Los Angeles. That, as Nintendo steps up with the competition with Sony. For a look at that and also a check on the markets, Andy Serwer "Minding Your Business."

Hello.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Hello, again.

They call it E3 in LA.

O'BRIEN: Right. That's right.

SERWER: That's the electronics expo.

O'BRIEN: I've been there.

SERWER: You have? All right. Let's talk a little bit about the markets first.

Stocks swooning at this hour. Let's go to the Big Board and see what we got. Dow is down 44 points and Nasdaq is down -- well, one stock is up, Northrop Grumman. Say what you will; it's a good environment for defense stock. They've got a stock split and a dividend that they're increasing.

Let's talk about the electronic entertainment expo in LA. A lot of stuff going on in that business.

Nintendo, obviously, dominate in the handheld market, but Sony is moving in, Soledad. They're introducing a Playstation portable. Nintendo's firing back with the new handheld dual screen version. Boy oh boy.

All your kids will be doing this, particularly boys. A new study out showing that boys from five to 12 now play with video games more than traditional games.

O'BRIEN: Not a shock at all.

SERWER: We have crossed the threshold. Not a shock at all.

Microsoft has a new product, as well. It's a video chat software online where, if you're playing like Madden Football, you can watch the expression of the other guy or gal playing.

Another interesting story, "The Millionaire Next Door." You know that book?

O'BRIEN: That was a great book.

SERWER: Yes, it is a great book. It's written by Thomas Stanley, a professor in Atlanta. He is now suing his publisher, according to published reports in Atlanta, Longstreet Press, because he says they've stiffed him on royalties of tens of thousands of copies of books.

Here's what an executive from Longstreet said: they said the company is in all kind of trouble. The number of employees have dropped from 28 to two in wake of the economic crisis caused by the September 11 terrorist attacks. He's playing the 9/11 card for not paying this guy. Kind of hard to figure that one, isn't it?

O'BRIEN: I know. Hard to believe, yes, it is. Andy, thank you very much.

SERWER: You're welcome.

O'BRIEN: A short break. We're back in a moment.

(COMMERCIAL BREAK)


Aired May 12, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody. There are other stories that we're following as well this morning. Lots to cover in that Iraq prisoner abuse story.

U.S. senators today are going to view more photographs of the abuse under some pretty high security conditions. We're going to talk with one of them, Senator Carl Levin, about that controversy this morning.

BILL HEMMER, CNN ANCHOR: Also this hour, citizen justice in Florida, and it's working apparently. We'll talk to a man who took matters into his own hands, using the Internet to capture the man responsible for a deadly crash. We'll get to that this hour.

O'BRIEN: His brother-in-law was killed in that crash. What a sad story, and what incredible luck he ended up having.

HEMMER: He set up a Web site or something to capture the guy?

O'BRIEN: Yes, it's a great story. So we'll have that this morning, as well.

Mr. Cafferty, good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

The question we're entertaining this morning is whether the decapitation murder of that American citizen at the hands of five hooded terrorist goons has changed the debate over whether or not to release additional photographs and perhaps video of alleged Iraqi prisoner abuse. A lot of people think it's changed a lot, actually -- AM@CNN.com.

HEMMER: You're getting a huge response, aren't you?

CAFFERTY: Lots and lots of mail, yes.

O'BRIEN: All right, Jack. Thank you.

CAFFERTY: Sure.

O'BRIEN: Well, U.S. officials say murdered 26-year-old American Nicholas Berg was told to leave Iraq but apparently ignored the warning. Berg's beheading was shown yesterday on an al Qaeda Web site -- a Web site, rather, that was linked to al Qaeda. He was in Iraq working on telecommunication towers when he was taken hostage. And the last time his family heard anything from him was on April 9.

This morning, we're joined by a spokesman for the Berg family, their neighbor, Bruce Hauser. He is in West Chester, Pennsylvania.

Mr. Hauser, thank you so much for talking with us this morning. And I must start by telling you words I think can not adequately express just how horrified and how sad we are for that family today. So thank you for taking the time to speak with us.

BRUCE HAUSER, BERG FAMILY FRIEND: Yes, good morning, Soledad. Thank you so much.

O'BRIEN: How are they doing? I mean, this is -- it's beyond the worst thing any parent could ever imagine happening to their child. How is the family coping today?

HAUSER: Well, the family is mighty devastated. I spoke with the family on numerous occasions yesterday, and it was just so sad to walk into the home and look at neighbors I have been living next to for all these years. Just, you know, I see them on a daily bases and see how happy this family was. And to have this happen to this family, this wasn't right for this family.

Nick Berg was the greatest young man you would ever want to meet. Very helpful to anyone in the community. I have known him ever since he was a toddler, watched him grow up to a decent young man. He played baseball in my backyard, helped me with different projects in the house, around the house.

The family and Nice are just great people. And my heart just goes out to this family.

One thing I'd like to say to America and across the world, let's keep this family in prayer. Let's hold this family up. Realistically, it was Nick Berg; it could have been one of our own.

And, really, Nick was just like one of my own. I called him my son because I watched him grow up from a child to an adult.

O'BRIEN: I've got to imagine it's not only hard for the family, but devastating for the community, as well.

HAUSER: Exactly.

O'BRIEN: How did the parents learn of his death? And how did they learn that, in fact, that the beheading was actually being seen on the Web site by many people?

HAUSER: I didn't learn until Monday afternoon. Nick's mother came over and informed me that they had found Nick's body and that he was, indeed, dead. That devastated me so bad.

I was working in New York, I dropped everything I had. And being the man I am, I didn't want to cry in front of his mother, so I went inside and cried, later on went back over to see the parents and broke down in front of the parent.

And this is really devastating, not only for the parents, but this whole neighborhood. The neighborhood met together last night for a vigil. There are probably 150 homes in this neighborhood, and everyone came together to show their support for not just the family, but Nick Berg. Nick was a great kid, a kid anyone would want to have for their own son.

O'BRIEN: I know that he owned a telecommunications company.

HAUSER: Yes he did, yes.

O'BRIEN: And so he had gone to Iraq, really, to get work for his company. Did he go -- did he go by himself? Give me a little more on the circumstances of what brought him into Iraq. And did he actually end up getting work?

HAUSER: I believe his first trip over he did work up an agreement where he had work. He came back home, and when he went back over, the work he had earlier agreed on fell through. So, knowing Nick, when he gets his mind made up, he is a great humanitarian, always wanting to help people. Nick is going to find something good that he can do for someone.

So I'm not surprised that when he went back over and found out that the agreement he originally had fell through, that he did not turn around and come back home. Nick was going to see how he can be a help to anyone.

O'BRIEN: Any idea when the body will be returned to his parents?

HAUSER: I'm not sure. I have not had a chance to meet with the parents. I plan to meet with them this morning again to offer my support and condolences. And I will get that information at that time.

O'BRIEN: Well, please add our voices to that, as well. Mr. Hauser, thanks for your time this morning.

HAUSER: Sure. Sure.

O'BRIEN: Terrible story to report.

HAUSER: Thank you so much. Once again, please pray for this family.

O'BRIEN: Believe me, we all are. Thanks.

HAUSER: Thank you. Thank you, Soledad.

O'BRIEN: Bill?

HEMMER: I've been reading a lot of his e-mails that he sent back to family and friends and business colleagues, too. It is quite remarkable to see how much he enjoyed his time there and so many positive things to say about the people in Iraq and the effort there also.

Other news this morning, radical Muslim cleric Muqtada al-Sadr says he wants his fighters to be part of a force patrolling the volatile cities of Najaf and Karbala and will only dissolve the Mehdi Army when there is an elected government in Iraq. Meanwhile, military officials say coalition soldiers exchanged fire with fighters loyal to the cleric during an ongoing operation in Karbala, a holy city in south central Iraq. Twenty-five insurgents killed in today's raid, several coalition troops hurt during that battle. Many, we are told, have returned to duty.

More money for the war in Iraq and Afghanistan is expected to be the focus of today's hearing before a Senate subcommittee. Defense Secretary Donald Rumsfeld earlier today, Joint Chiefs Chairman Richard Myers expected to appear at this hour. President Bush has put in a request for $25 billion more from Congress to continue the war effort in both countries.

NBA star Kobe Bryant has pleaded not guilty to one charge of sexual assault. Two days of hearings held in Eagle, Colorado, so far this week. A trial date has not yet been set, but lawyers for both sides have agreed to begin in the month of August. Bryant's accuser was not in court yesterday as she was on Monday earlier this week.

(WEATHER REPORT)

HEMMER: In the Iraqi prisoner abuse scandal, we're now hearing from Army Private Lynndie England in this country, who has been seen in some of the photos taken inside the prison. England says she was told by superiors to pose as she did in photographs like this one. Here is also what she told Denver's KCNC television.

(BEGIN VIDEO CLIP)

PFC LYNNDIE ENGLAND, U.S. ARMY: I was instructed by persons in higher rank to stand there, hold this leash, and look at the camera. And they took a picture for PSYOP, and that's all I know.

(END VIDEO CLIP)

HEMMER: England appearing subdued in that latest interviewed, compared to the photos, is now at Ft. Brag, North Carolina, and is said to be almost five months pregnant, as well.

U.S. senators have a chance to review more material depicting Iraqi prisoner abuse today in D.C. Democratic Senator Carl Levin in Michigan here to talk about this, as well as yesterday's abuse hearings, as well.

Senator, welcome back to AMERICAN MORNING.

SEN. CARL LEVIN (D), MICHIGAN: Good to be with you, Bill.

HEMMER: Will you be viewing these photos later today in the afternoon?

LEVIN: Yes.

HEMMER: And do you believe they should be released to the public?

LEVIN: I do. I think it's best that they get out and we get this behind us.

Obviously, they've got to be -- if they're going to be put out to the public, that's a decision for the Pentagon and for the White House, not for the Senate. But if they do decide to put these pictures out, obviously they ought to be treated somewhat carefully. They ought to cover up private parts, genitals. You don't have to see faces to understand what happened, but I think it's best to just be open, get it out, and then get on with the investigation.

HEMMER: Republican Senator Saxby Chambliss said a similar thing earlier. He said get it out and get it over with. Is there a majority of opinion that you know of among your Senate colleagues who feel the same way? And do you share any concern at all that if you put out more photos, it could put Americans more in harm's way in Iraq?

LEVIN: I think the only hope that we have, really, of redeeming ourselves here and winning back some of the support that this incident has cost us, if we act as an open society that will deal with problems openly, that will hold people accountable. I think that's what we are and what we should be, and that's one of the reasons that I think we will continue to have appeal to people around the world is that we will deal openly and honestly about the problems we have and not just hide them under the rug. And hopefully that will end up being a net plus. But I don't think we have any choice here.

HEMMER: Senator, let me take you back to yesterday. Major General Antonio Taguba on the Hill before many senators yesterday. Here's how he talked about what he found in that report, about high up the chain of command the abuse goes and who should be responsible. Listen here.

(BEGIN VIDEO CLIP)

MAJ. GEN. ANTONIO TAGUBA, U.S. ARMY: At the end of the day, a few soldiers and civilians conspired to abuse and conduct egregious acts of violence against detainees and other civilians outside the bounds of international law and the Geneva Convention.

(END VIDEO CLIP)

HEMMER: A few soldiers and civilians his conclusion. Does it end there?

LEVIN: Well, it may, but we have to take the trail wherever it leads us. We just heard on your show from Ms. England, who said that she was given direct orders to do what she did. We have to follow that chain up. Who gave her those orders and who knew about the person who was giving those orders? How far up in the command chain did it go?

But that's what investigations are about. That's what honesty and openness are about. That's what thoroughness is all about. And I hope that's what we as a people will continue to do. No matter how painful this thing is, it is one of the attractions of America that we deal with problems.

HEMMER: There are suggestions that it's not systemic based on the report that was released yesterday and made public in those hearings. You seem to indicate, though, you're still on the fence about this and you have not decided ultimately.

LEVIN: Oh, yes.

HEMMER: Why do you still have so much doubt at this point?

LEVIN: Well, these are not just spontaneous acts which occurred. That leash did not just appear there spontaneously. Those cameras didn't just appear there spontaneously.

There was a plan here to extract information from prisoners, and that plan involved not just those folks, those enlisted personnel. This plan, obviously, involved the intelligence people who were at that prison. There was a collaboration, according to General Taguba. I think he's right.

Just from the pictures, it shows that he's right, as well as the evidence already accumulated. And so we have got to see just how far up did this procedure get approved. Whether it was a written policy or not is dubious. No one is going to put this kind of policy in writing.

But clearly, there was a practice and procedure which was put in motion by the intelligence community. And they used here the military police to carry out what was a procedure they decided to use. That is what already appears clear to me.

HEMMER: Senator, the viewing is later today, 2:00 to 5:00 Eastern Time there in D.C. Perhaps tomorrow we can talk more about it. Carl Levin, thanks again for your time at Capitol Hill.

LEVIN: Thanks, Bill.

HEMMER: Soledad?

O'BRIEN: Former President Clinton came out to support Democrat John Kerry's race for the White House. Mr. Clinton was talking politics last night at a special fundraising concert at the legendary Apollo Theater in Harlem. He encouraged the audience to get behind Senator Kerry.

(BEGIN VIDEO CLIP)

WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: The only way we can lose is if we're lazy or dumb and we don't do what we're supposed to do. And we have a candidate we can be proud of who will do a good job for this country. And now the rest of us have to line up and do a good job for him and for our future.

(END VIDEO CLIP)

O'BRIEN: Mr. Clinton also talked about completing his memoir. The book, which is called "My Life," is about 900 pages long and will be in stores in late June.

HEMMER: Apparently he has had a tough time finishing that thing, huh?

O'BRIEN: Yes. He said writing was even worse than living it the first time, which was tough already.

HEMMER: Late June, stay tuned.

In a moment here, tracking down a hit and run suspect by creating a Web site. A novel approach that apparently has worked so far. That's next.

O'BRIEN: Also, a bizarre phenomenon in the Mexican sky. Details ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Rolando Pozo was angry the suspect in the hit and run death of his brother-in-law did not show up in court. When Carlos Giddings missed a second court date, well then Pozo decided to create a Web site devoted to catching him. It worked, believe it or not. A response to the Web site led police to Giddings, eventually.

Rolando Pozo joins us this morning from Tampa, Florida.

Nice to see you. Good morning to you and congratulations, I have to say.

ROLANDO POZO, FOUND SUSPECT WITH WEB SITE: Good morning, thanks a lot.

O'BRIEN: Your brother-in-law was killed in a crash and Carlos Giddings didn't show up, as we mentioned, for court. How much after that second court appearance that was missed did you say, what I need to do is create this Web site?

POZO: And actually, it wasn't even after the second court appearance. It was after the pretrial the Thursday before is when the idea was born. And then, you know, after he didn't show up Monday, I went home and immediately started working on the project.

O'BRIEN: What did you put on the Web site?

POZO: Everything I could find out about Carlos. My sister-in- law, Tammy Burton (ph), and I e-mailed each other back and forth, and we just got all the information together that we could get from the Hillsborough County State Sheriff's Office Web site, Tampa PD, everything we could find. And we put it all on the Web site. O'BRIEN: Did you realistically have an expectation that someone would log into your Web site, read through it and say, oh, yeah, I know where this guy is? I mean, that is sort of like the needle in the haystack thing, right?

POZO: It was totally a long shot from the beginning, but there was always a chance. And that's what we were hoping for, is one slight chance. And we got lucky; we got the chance of a lifetime.

O'BRIEN: Explain to me what happened with that chance in a lifetime, because you really got a little bit of publicity about this Web site, and that's kind of what led to the next thing, right?

POZO: Yes, absolutely. We were able to get the broadcast on local Channel 10 News at 6:00 on Thursday night. And it appears that someone had a change of heart at about 3:52 a.m., Thursday night, Friday morning, and sent in the tip that led us right to Carlos.

O'BRIEN: So someone e-mailed you and said I know where Carlos Giddings is?

POZO: Exactly.

O'BRIEN: And you took that information then to the police.

POZO: Exactly.

O'BRIEN: You gave them the address because I guess they were pretty specific. They gave you an address where you could find the guy.

POZO: Yes, they did.

O'BRIEN: The cops go there. What happened?

POZO: The cops walked into the room and there was a room full of adults there, and he asked everyone, "Is Carlos Giddings here?" And everybody acted like they don't know where he is, they haven't seen him in a long time. So the cop has the awareness to ask this child that's sitting on the floor, "Is Carlos here?" And the child turns around and points to the room that Carlos is at, and he was crawling out the back window as the police made their way around the back.

O'BRIEN: They were able to track him down.

POZO: Yes.

O'BRIEN: You have on your Web site now, "Three days." We caught him in three days.

POZO: Three days, yes.

O'BRIEN: Is this something that you recommend that other people who feel like justice has been denied or maybe temporarily deferred because of similar situations, that they do the same thing, do you think? POZO: Absolutely. I think that people should take an interactive role and help the authorities to bring people to justice. I don't know if it will work for them. We got lucky. But not trying anything will certainly not help.

O'BRIEN: Where does the case stand now?

POZO: We have no idea. We haven't been contacted since he's been taken in.

O'BRIEN: Well, congratulations, again. Good work...

POZO: Thank you very much.

O'BRIEN: ... I guess the police would say to you. Rolando Pozo joining us this morning. Thanks.

Bill?

HEMMER: A renowned UFO expert held news conference yesterday talking about a bizarre phenomenon over eastern Mexico. Some strange lights to look at here surrounding a Mexican military surveillance plane.

The 11 objects picked up by an inferred camera on the fifth of March. UFO experts, including Janie Massan (ph), says the objects were invisible to the naked eye, but they can be seen on videotape. Mexican Air Force officials confirm that they shot the tape along the east coast of Mexico.

O'BRIEN: Looks like a UFO to me.

HEMMER: Yes.

O'BRIEN: I don't know. Why not?

HEMMER: No chance.

O'BRIEN: Could be.

HEMMER: Sorry.

O'BRIEN: How do you know?

HEMMER: It could be the backside of a cargo plane or something.

O'BRIEN: Oh, really? Flying like that? Does that look like the backside of a courage plane to you?

HEMMER: It could be. Or...

O'BRIEN: You can't see it with your naked eye, but you can only see it on videotape?

HEMMER: All I'm saying is if they can get there, then can get down here. O'BRIEN: You are a real doubter on these things.

HEMMER: Are we finished?

O'BRIEN: Yes, I'm done. I'm quite through, thanks.

HEMMER: In a moment here, you talked with the spokesperson for the Berg family outside of Philadelphia. Tough, tough, tough times for them. More on what they're saying in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Jack's got the Question of the Day.

Good morning.

CAFFERTY: Hi, Soledad.

The debate about what to do with the additional pictures and video of the Iraqi prisoners is getting more complicated. Before yesterday, the debate was mostly about spin and political considerations. If the pictures were not released, would they eventually leak out anyway, would that cause additional embarrassment to the administration? If they were dumped on the public and press, would they create a second round of public revulsion and opposition to the war?

Because the terrorists claim the decapitation murder of an American was revenge for the abuse of Iraqi prisoners, all of a sudden the debate is a little different this morning. The question we're asking, should additional pictures now and video of the alleged prisoner abuse be released?

Patrick in Old Orchard, Maine, writes this: "As a long-standing and staunch opponent to the war in Iraq, the video and barbaric murder of Nick Berg has so overcome my anti-war beliefs and enraged me to the degree that I now believe in collective annihilation. The terrorists have totally misplayed any public sympathy they may have had from even the most die-hard pacifists. I can't believe I have become like them."

Doug in Florida writes: "It wouldn't surprise me there was some wag the dog going on here. Of course, that wouldn't be the popular thing to say. But you have to admit the White House desperately needs public outrage and support. After all, President Bush is in serious trouble in the polls."

Naomi in Bryan, Texas: "No, the additional pictures should not be released. How do you explain this to small children? I feel we can read between the lines. We're smart people, we don't need someone to draw us pictures. Where is the outrage from the rest of the world about what was done to Mr. Berg?"

Catherine in Del Rey Beach, Florida: "The pictures should never have been released to begin with. But let's keep in mind that Nicholas Berg's family would have no complaints if that's all that had happened to their son. Nor would the families of those killed or strung up over an Iraqi bridge, or Danny Pearl's widow, or the victims of September 11th."

And finally, VB in North Carolina: "We should release our military. We can worry about the hearts and minds of those who have them after we kill those with neither."

O'BRIEN: Wow, tough responses.

CAFFERTY: You talk about -- they pushed some buttons with that little act yesterday.

O'BRIEN: Really. All right, Jack. Thank you.

Still to come this morning, blockbuster or bust? A preview of the weekend's box office opening of Brad Pitt's "Troy." Plus, what you can look to from other summer flicks. All that, plus a look at the "Frasier" finale all ahead on "90-Second Pop."

Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back to AMERICAN MORNING.

O'BRIEN: And, in fact, it is just about half past the hour on this AMERICAN MORNING.

Coming up in just a few minutes, we'll take a look at some of the last words that were shared between Nick Berg and his family before he was murdered in Iraq. Looking at some of the e-mails that he sent, and they show a lot about what kind of young man he was.

HEMMER: Very revealing, too. Very positive, very hopeful for the future, and loved the countryside. He didn't care much for what he called the smoggy streets of Baghdad, but loved being in the north and in the east.

Also, less than 100 days before the summer games and there is still so much to do, we're told. We'll look at the security plans for Athens, Greece. Is the city ready? Can it assure the world the games are safe from terrorism?

We talked earlier about this, too. So we'll get to it.

O'BRIEN: Right. We'll see what they say.

Also, top stories this morning. British Prime Minister Tony Blair says despite the damage done by reports of mistreatment at Iraqi prisons, complaints about British troops have been addressed. Speaking before parliament, Blair says there is no abuse that such abuse ever took place.

(BEGIN VIDEO CLIP) TONY BLAIR, BRITISH PRIME MINISTER: There is no evidence whatever either of systematic abuse or of ministers or anyone else refusing to act on allegations of abuse in respect of detainees in British custody. On the contrary, the only evidence that is being presented are photographs that are almost certainly fake.

(END VIDEO CLIP)

O'BRIEN: The prime minister adds that any claims of abuse are now being investigated.

A police officer in Afghanistan claims he was abused while in coalition custody. The incident reportedly took place in Gardez and Bagram in August of 2003. According to the statement, the officer says he was stripped naked, photographed, kicked, and subjected to sexual taunting during his incarceration before he was released. The U.S. military is investigating.

A gallon of gas going to cost more than 2 bucks by some time next month. According to the Department of Energy, the national regular price for unleaded regular will top out at $2.03 in June. The current average, $1.94 a gallon, that's 45 cents more than a year ago.

Some stations in California are already charging more than $3 a gallon for premium. San Diego pays the highest average price. Self- serve regular costs $2.25 per gallon. A consumer group there is calling on Governor Schwarzenegger to declare a state of emergency.

And in France, it is opening day for the 57th Cannes Film Festival. A total of 18 films will battle it out for the grand prize. American film director Michael Moore will also premier his controversial film. It's called "Fahrenheit 911," which takes jabs at President Bush. There were fears that the festival will be disrupted by protests from striking French workers, but a last-minute deal, in fact, was worked out.

(WEATHER REPORT)

HEMMER: About 30 minutes ago here on AMERICAN MORNING, a family friend and neighbor of murdered American Nicholas Berg told us it is unclear when Berg's body will arrive back in the U.S. The beheading of the 26-year-old shown yesterday on an al Qaeda-linked Web site. Berg went to Iraq to find work rebuilding telecommunications towers. Family friend Bruce Hauser talked with us about the loss.

(BEGIN VIDEO CLIP)

HAUSER: Nick Berg was the greatest young man you would ever want to meet. Very helpful to anyone in the community. I have known him ever since he was a toddler, watched him grow up to a decent young man, played baseball in my backyard, helped me with different projects in the house, around the house.

The family and Nick, they're just great people. And my heart just goes out to this family.

(END VIDEO CLIP)

HEMMER: U.S. officials tell us that Berg was warned to leave that country, but he apparently ignored that warning. The last time his family heard from Berg was back on the ninth of April. Some reports say he was making his way out of Iraq at the time.

About 150 friends and neighbors held a candlelight vigil near the Berg home in West Chester, Pennsylvania, outside of Philadelphia. (AUDIO GAP) and the life of the young American.

(BEGIN VIDEOTAPE)

HEMMER (voice-over): Twenty-six-year-old Nicholas Berg went to Iraq to help rebuild the country and make his own company stronger. Nick was working on communication towers, many badly damaged from bombing and from sabotage. Those closest to him say he was smart, funny and committed, ideals that compelled him to travel to Iraq. These were his father's words before he learned of his son's death.

MICHAEL BERG, NICK BERG'S FATHER: He just really wanted to be part of something that was important. He supported the administration's being in Iraq, he supported everything that they were doing. And he wanted to help, and he wanted to help in a positive way by building rather than breaking down.

HEMMER: Through e-mail, Nick kept in touch with family, friends and business colleagues. When he was working in northern Iraq, he wrote, "Mosul is very calm, except for the Army convoys and checkpoints. You can't really tell there's an occupation. Baghdad every night, you hear IEDs and such, but here I've yet to hear or see anything except a few aged craters."

In another e-mail, he also mentioned the democratic reform starting to take hold. "The fact alone that an Iraqi man and I are just now sitting in a free and open Internet shop is unbelievable to most Iraqis."

But in the end, Nick was in Iraq to help rebuild its infrastructure. And he wrote about the freedom he experienced while doing his work.

"When I'm climbing these towers, I even get to go a few hours without some awkward America (ph) question. The answer to which is usually Sawa (ph), as you like."

Nick Berg, far too young to die, will never see the Iraq he tried to make better.

(END VIDEOTAPE)

HEMMER: We can also learn from those e-mails that his Arabic was decent. Oftentimes he would catch a bus or a taxi traveling solo throughout Iraq. He was also making progress with his business, too. The White House vowing that the killers in the Berg video will be hunted down and brought to justice.

Soledad?

O'BRIEN: Three months from now the Olympic games will open in an unprecedented atmosphere of concern over terrorism. Earlier this morning, I spoke with Denis Oswald in Athens Greece, the site of the games. He is the chairman of the Olympic Coordination Commission, and I asked him if Athens will, in fact, be ready to be in the spotlight come August.

(BEGIN VIDEOTAPE)

DENIS OSWALD, CHAIRMAN, IOC: Our assessment is very positive. You know, at some stage we had doubts about the completion of some of the infrastructures, including some spots (ph), venues, but I can really say that this problem is now behind us.

O'BRIEN: Obviously, when it comes to questions of progress, it's more than just buildings and structures. It's also how things are security-wise. How would you rate how the progress is on the security front? And can you guarantee that we will have a secure and safe Olympic games, not only for the athletes, but, of course, the visitors, as well?

OSWALD: Well, security has always been the highest priority for the IOC and for the Greek government as well. As you know, the Greek government has put a lot of efforts for security, and they are assisted by a group of seven so-called advisory nations which includes United States, Great Britain and other countries.

And I met with representatives of this group yesterday, and their assessment is really positive. All efforts will be made to make sure that the games are safe, not only for the athletes, but also for the visitors.

O'BRIEN: But then, of course, you had this recent spate of bombings in Athens, right outside a police station, actually. The public order minister said that it was essentially meaningless. And he said it was local anarchists who were to blame for that. Are you not concerned anymore about that kind of thing?

OSWALD: This happened in a residential area, not in an Olympic- secure-related venue. And we had the same information. That kind of small bombing happened from time to time in Greece. And here, nobody paid attention to that, and it doesn't change at all our assessment about security.

O'BRIEN: $1.2 billion, in fact, being spent on security. Some predict that number could actually go significantly higher. What is that money really going for? I mean, what are you buying with that money that you didn't buy in Sydney, for example?

OSWALD: It's partly related to the specific situation of Greece. They bode for about $800 million of technical equipment for security. And this is, of course, a part of the budget.

But, of course, this Olympic game 2004, the first summer games happening after September 11. And they will have to spend the money also to have forces from the army, from the police, and other groups to make sure that the games are successful, that the operation for security. But this amount is an indication that this aspect is taken very seriously by all the government and all the people involved.

(END VIDEOTAPE)

O'BRIEN: Denis Oswald of the IOC. The Olympic games will be held from August 13 to August 29.

Bill?

HEMMER: Soledad, I've been watching while that report was coming to us regarding Athens, Greece, watching the situation in Baghdad. A press conference under way with Brigadier General Kimmitt, Dan Senor, talking about just a few minutes ago their reaction to the beheading of Nick Berg.

Dan Senor called it "grotesque" and "brutal," saying, "Once again, our thoughts and prayers are with the Berg family back in Pennsylvania." We'll listen to this throughout the morning and bring you more news when we get it out of Baghdad.

In a moment, the markets back above 10,000. Andy tells us what is key today.

And saying goodbye to Frasier Crane after 11 long seasons.

Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: As we mentioned right before that commercial break, Dan Senor talking in Baghdad about the death and execution of Nick Berg. Listen now to Dan Senor minutes ago.

(BEGIN VIDEO CLIP)

DAN SENOR, COALITION SPOKESMAN: Sometimes the banality of terrorist acts speak for itself. I know there are images being broadcast, I know in this part of the world, and I think in the west, as well, of Mr. Berg's grotesque and brutal murder. And this is clearly and tragically one of those terrorist acts. Again, our thoughts and prayers are with the Berg family and their community.

(END VIDEO CLIP)

HEMMER: That community just outside of Philadelphia in Pennsylvania. Ironically, Nick Berg, some of the work he was doing there in Iraq took place just outside the Abu Ghraib prison, working on transmission towers there. Nick Berg, beheaded at the age of 26.

Soledad?

O'BRIEN: Medical news now. Something that's coming out might be helpful to people who cannot tolerate some of the popular pain killers, like Aleve or Celebrex. Dr. Sanjay Gupta at the CNN Center this morning to tell us about this new drug.

What's it called, Sanjay?

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: It's called Licofelone, and it's made by a German manufacturer called Merckle. But you're absolutely right. I mean, these other non-steroidal anti- inflammatory drugs known as NSAIDs in the medical community are very, very popular.

Take a look at the list there. Everyone has taken probably one of these drugs at some point or another, unless you have an allergy to them. If you have arthritis, you're even more likely to have taken them. About 70 million Americans do have arthritis and rely on these drugs, making it a $15 billion industry.

But here's the thing, Soledad. One of the big complications, side-effects, concerns about this drug is gastrointestinal disturbances or bleeding, even. And it's sort of the holy grail of developing one of these anti-inflammatory drugs that does not have gastrointestinal side-effects, and that's what a lot of people have been focused on. And that's why we're reporting this now to you.

The American Journal of Gastroenterology talking about Licofelone, and specifically its relationship to gastrointestinal side-effects. What they did was they compared this drug to a well known anti-inflammatory, Naperson, to try and figure out how the two stack, one against the other.

In a study of about 121 patients, what they found was that after four weeks, those on Licofelone had no ulcers, and those taking Naperson, about 20 percent of them had ulcers. In 12 weeks, the sort of difference was even more striking, about 12 times more likely to develop ulcers in those taking Naperson.

Bottom line, fewer ulcers, better gastric tolerability, at least in these small studies initially with Licofelone. Bad news about this is it won't be available in Europe until 2006 and will probably take even a bit longer here in the United States -- Soledad.

O'BRIEN: But what about the other bad news which is, of course, the question of side-effects?

GUPTA: Well, I mean, one of the side effects, obviously this gastrointestinal problem. But you also think about other side- effects. There are a whole list of them.

The ulcers, specifically, but you can also have kidney problems, high blood pressure. There was some concern a couple of years ago about Vioxx and its relationship to the heart. So those are all significant concerns, as well.

Bottom line, if you look at the numbers, though, specifically, how big a deal is this? Well, 107,000 people a year hospitalized from GI bleeding due to these anti-inflammatories -- 16,500 people die each year as well. So there are some concerns about this. The exciting thing about this drug is that Licofelone -- again, the name -- works a little bit differently than some of the other anti-inflammatories. We have to wait for some larger studies to see how it pans out in terms of those GI side-effects -- Soledad.

O'BRIEN: All right. You've got to wait for the drug, at least here in the U.S. Maybe waiting a little less time in Europe. All right. Sanjay, thanks.

GUPTA: Thank you.

O'BRIEN: Bill?

HEMMER: In a moment here, something new for Gameboy lovers. And this could be the time to buy a Playstation. Andy tells us why.

Back in a moment here. And what's that Dow doing around 10,000? Back in a moment after this.

(COMMERCIAL BREAK)

O'BRIEN: The big electronics entertainment expo kicks off today in Los Angeles. That, as Nintendo steps up with the competition with Sony. For a look at that and also a check on the markets, Andy Serwer "Minding Your Business."

Hello.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Hello, again.

They call it E3 in LA.

O'BRIEN: Right. That's right.

SERWER: That's the electronics expo.

O'BRIEN: I've been there.

SERWER: You have? All right. Let's talk a little bit about the markets first.

Stocks swooning at this hour. Let's go to the Big Board and see what we got. Dow is down 44 points and Nasdaq is down -- well, one stock is up, Northrop Grumman. Say what you will; it's a good environment for defense stock. They've got a stock split and a dividend that they're increasing.

Let's talk about the electronic entertainment expo in LA. A lot of stuff going on in that business.

Nintendo, obviously, dominate in the handheld market, but Sony is moving in, Soledad. They're introducing a Playstation portable. Nintendo's firing back with the new handheld dual screen version. Boy oh boy.

All your kids will be doing this, particularly boys. A new study out showing that boys from five to 12 now play with video games more than traditional games.

O'BRIEN: Not a shock at all.

SERWER: We have crossed the threshold. Not a shock at all.

Microsoft has a new product, as well. It's a video chat software online where, if you're playing like Madden Football, you can watch the expression of the other guy or gal playing.

Another interesting story, "The Millionaire Next Door." You know that book?

O'BRIEN: That was a great book.

SERWER: Yes, it is a great book. It's written by Thomas Stanley, a professor in Atlanta. He is now suing his publisher, according to published reports in Atlanta, Longstreet Press, because he says they've stiffed him on royalties of tens of thousands of copies of books.

Here's what an executive from Longstreet said: they said the company is in all kind of trouble. The number of employees have dropped from 28 to two in wake of the economic crisis caused by the September 11 terrorist attacks. He's playing the 9/11 card for not paying this guy. Kind of hard to figure that one, isn't it?

O'BRIEN: I know. Hard to believe, yes, it is. Andy, thank you very much.

SERWER: You're welcome.

O'BRIEN: A short break. We're back in a moment.

(COMMERCIAL BREAK)