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CNN Live At Daybreak

Incursion in Gaza; Display Dispute; High Gas Prices; Dissecting Diets

Aired May 18, 2004 - 05:30   ET

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

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


CAROL COSTELLO, CNN ANCHOR: And good morning to you, welcome to the second half-hour of DAYBREAK. From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Here are the latest headlines now.

A massive operation in Gaza, at least 13 Palestinians have been killed during rocket attacks from Israeli helicopters in the Rafah Refugee Camp. The attacks were followed by the arrival of around 100 tanks and bulldozers. Israel is demolishing Palestinian homes in the area to create a security buffer.

The independent 9/11 Commission opens hearings in New York City this morning. The commission is looking at the emergency response procedures at the World Trade Center.

In money news, rising gas prices may be making some people think twice about buying that big SUV. Sales for April dropped 15 percent. Analysts say prospective buyers are waiting to see if gas prices drop.

In sports, transsexuals have been cleared to compete in the upcoming Athens Olympics. The International Olympic Committee set new rules saying that anyone who has legally and physically changed sexes can compete as their new gender.

In culture, Martha Stewart is trying to get back on TV. "Daily Variety" reports Stewart met with a noted reality TV producer to work on a syndication deal. Her TV show was pulled off the air in most major markets after her conviction in March.

And in weather, a heavy hurricane season may be on the way. We'll find out more from Rob Marciano.

Good morning.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: All right, thank you, Rob.

Tensions running high in Gaza this hour, about 100 Israeli tanks and bulldozers rolled into the Rafah Refugee Camp today. Israel says 13 Palestinians have been killed in those helicopter attacks.

Matthew Chance live in Gaza with more for you. Matthew, tell us more.

MATTHEW CHANCE, CNN CORRESPONDENT: Carol, a big Israeli security operation under way in the south of the Gaza Strip in this Rafah Refugee Camp where tens of thousands of Palestinians live right up close to the Egyptian border. This is the area where, in the past week, there have been seven Israeli soldiers killed by Palestinian militants.

Because of that, Israeli forces have moved in in some considerable strength. You say at least 100 armored vehicles there, as well as tanks and bulldozers and armored personnel carriers, preparing to clear hundreds of Palestinian homes to increase the security barrier between itself, its forces along the Egyptian border and the Palestinian residential areas.

The Israeli army is saying that it's conducting house-to-house searches of the Rafah Refugee Camp in order to locate the strongholds of Palestinian militants and also to destroy houses that are being used by Palestinian militants as cover, either to shoot at troops or to dig tunnels into Egypt, which they use to smuggle weapons.

Well this has created a sense of fear and panic amongst ordinary Palestinians there. And many hundreds, according to the U.N., have left their homes, carrying whatever belongings they can with them to safer areas further back from the fighting -- Carol.

COSTELLO: Matthew Chance reporting live from Gaza this morning.

You can keep up with the latest on the crisis in the Middle East on our Web site. The address, CNN.com.

In Iraq this morning, the U.S. civilian administrator says Washington is not giving up on the goal of a democratic Iraq. Paul Bremer spoke at the funeral of Izzedine Salim, the Iraqi Governing Council president killed Monday in a suicide car bombing. Said Bremer, we must continue the political process.

This comes as U.S. officials in Baghdad decide to rename Abu Ghraib Prison. The prison where some Iraqi prisoners were abused will now be known as Camp Redemption. The Iraqi Governing Council recommended that name change.

And more troubles for the Halliburton Corporation. Auditors for the Pentagon are recommending withholding nearly $160 million in payments to Halliburton. The auditors say the company charged the military for meals that were never served.

We are just one day away from the first legal proceedings in the prison abuse scandal. Specialist Jeremy Sivits is expected to plead guilty to charges of conspiracy, dereliction of duty, cruelty and maltreatment of detainees.

Corporal Charles Graner will be arraigned tomorrow. He is charged with conspiracy, dereliction of duty, cruelty and maltreatment, assault, committing indecent acts, adultery and obstruction of justice.

Staff Sergeant Ivan Frederick also being arraigned. His charges include conspiracy, dereliction of duty, cruelty and maltreatment and assault and committing indecent acts.

And the third man to be arraigned tomorrow is Sergeant Javal Davis. He is charged with conspiracy, dereliction of duty, cruelty and maltreatment, providing a false statement and assaulting detainees.

Let's bring in our senior international editor David Clinch to talk more about this.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Yes, Carol, well one of the most interesting things, we are talking about our coverage of both the arraignments tomorrow and Specialist Sivits who will be the first one to be court-martialed tomorrow around this time, Eastern Time, 5:00 a.m. tomorrow. We'll have our own reporter there.

But one of the most interesting things, I've just been watching the Arab networks doing live interviews right now with the JAG officers who were in charge of this process at the courts with senior U.S. military and CPA officials. The Arab world is watching this very closely.

And we were talking about this earlier, the U.S. military and the CPA in Baghdad making it clear that a very important part of this process for them is showing how open this is to the Arab world.

COSTELLO: But how difficult, because they are going to have to have a translator in there, aren't they?

CLINCH: They do have translators. They have set it all up for translation to be done in real time over both the closed circuit TV for any Arab journalists that want to watch from outside and they will distribute Arabic translation of all the proceedings immediately following the proceedings every day, not just with tomorrow's court- martial, but all of them. So obviously a public relations aspect to this, but it's a very serious public relations aspect because that is one of the central parts of the story.

The Bush administration right from the top making it clear that this has been a big hit to the U.S. goal of displaying themselves as liberators leading up to the handover in Iraq. And they have got to deal with that.

COSTELLO: As far as who will testify, Jeremy Sivits, of course, will be in there.

CLINCH: Right.

COSTELLO: But who else will testify?

CLINCH: Well that depends on exactly who pleads and what kind of a court-martial they face. We have made the distinction already that Sivits, we're told, will be a special court-martial with the assumption that he will plead guilty. The assumption, and again, it is, at this point, an assumption that he will give out information. Others have yet to plead. When they are arraigned, we'll hear what they plea.

Based on their pleas, we will then find out whether they face special court-martials or the more severe general court-martials. Those take a little bit longer to put together. They will face stiffer sentences. And again, the question will they (INAUDIBLE)? We don't know yet. But the goal right now from the administration in Baghdad is to make sure that no matter who pleads that it's all open and that we and the Arab world, in particular, get to see how open this is.

COSTELLO: That will be very fascinating to watch, very interesting. Thank you -- David.

CLINCH: It will be. You're welcome.

COSTELLO: The Iraq prison abuse scandal is evoking strong reaction around the world. An artist brought it home to the streets of Seattle, Washington.

And reporter Pat McReynolds of CNN affiliate KING in Seattle reports on reaction.

(BEGIN VIDEOTAPE)

PAT MCREYNOLDS, KING-TV REPORTER (voice-over): What would evoke such emotion that grown men would scuffle in the streets of Seattle? Only the disturbing snapshot viewed around the world recreated in Fremont.

It started with an anonymous artist voicing silent protest, placing black hoods on the statues known as "Waiting for the Inner Urban." He even placed an electric chair hooked to a car battery in front.

UNIDENTIFIED MALE: You know this is headline news right here in Fremont.

MCREYNOLDS: Passersby couldn't help but be moved by the image.

UNIDENTIFIED FEMALE: I think it's really scary. My first reaction was, oh my God, why would somebody do that?

UNIDENTIFIED MALE: First I thought it looked like the five guys behind the guy they just beheaded last week.

MCREYNOLDS: But suddenly, this man charged the display, snatching the hoods and tearing off down the street before ditching the cloth in the waters of Lake Union.

TRIP ALLEN, GAVE CHASE: I asked him if it was his art piece, his statement and he said it is mine now.

MCREYNOLDS: Trip Allen gave chase. ALLEN: I wanted to get those bags back. I felt like the statement, that art, it's someone's statement that they made and he is violating that free speech. I wanted the bags back.

MCREYNOLDS: So did Tom Mellado who fished them out of the lake to bring back to the statues.

TOM MELLADO, RETRIEVED BAGS: There are venues for everyone's opinion. And I think if you -- if you decide to do something constructive to voice your own opinion, I mean that's fine. But to actually destroy someone else's opinion, I think that's a tragedy and I don't think it belongs in this country.

ALLEN: I think with a slipknot, tie them tight.

MCREYNOLDS: In the end, these strangers felt compelled to recreate the shocking display, not necessarily because they agree with it, but because no voice should be tossed aside.

MELLADO: I don't know how long it's going to last like this, but I think for a little while longer it will be great.

MCREYNOLDS: The artist for the work remains anonymous, but if their intention was to get people to think, they more than succeeded.

(END VIDEOTAPE)

COSTELLO: That report from Pat McReynolds of CNN affiliate KING.

Americans aren't the only ones feeling the pain at the pump. Just ahead, how people overseas are coping with gas prices that don't seem to be coming down anytime soon.

And later, yet another low carb versus low fat study. Why one method of dieting may be preferred over the other.

This is DAYBREAK for Tuesday, May 18.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 5:45 Eastern Time. Here is what's all new this morning.

Israeli rocket attacks kill at least 13 Palestinians in the Rafah Refugee Camp on the border with Egypt. Later, hundreds of Israeli tanks and bulldozers rolled in.

The independent commission looking into the September 11 attacks opens a hearing in New York City today. It will look at whether there were missteps and problems that led to deaths that could have been avoided.

In money news, Lucent Technologies agrees to pay a $25 million fine for not cooperating with government investigators in a securities fraud investigation. It is the largest penalty ever imposed by the SEC against a company for failing to cooperate. In sports, Denver Broncos tight end Shannon Sharpe says he is retiring after 14 years in the NFL. A CBS spokeswoman says Sharpe will replace Deion Sanders on the "NFL Today" pregame show. Hallelujah.

In culture, Don Hewitt, the creator of "60 Minutes," is being honored tonight in a farewell tribute. Hewitt, who is 81 years old, has spent 50 years in broadcast journalism. I bet he'd like to go on, too, huh -- Rob?

MARCIANO: Fifty years is a long time. In TV time, that's like 150.

COSTELLO: True.

MARCIANO: Good for him.

(WEATHER REPORT)

COSTELLO: All right, thank you, Rob.

Those are the latest headlines for you.

Well it has been a steady drone of discontent is getting louder by the day. Gas prices are too high. With Crude oil above $40 a barrel and gas topping two bucks a gallon, some industry execs are calling for the government to help by releasing emergency reserves. But the Energy Department has this to say about that. The president believes that the Strategic Petroleum Reserve should be used only for protection against oil supply disruption and not to manipulate price.

A Florida gas station owner feels your pain at the pump and tells it like it is with some amusing adjustments to the typical price sign. Take a look. See arm, leg and the bottom one, first born.

The oil price monster certainly isn't just a problem we face in this country. Let's see how it's hitting Europe.

Our Jim Boulden joins us live from London to talk more about that.

Jim, how high are gas prices there?

JIM BOULDEN, CNN CORRESPONDENT: Well, Carol, I have to say that people here do not feel sorry for Americans who drive those big SUVs, not at all. The comparison is that gas prices in Germany are about $4 a gallon and that's one of the lowest in Europe. Here in the U.K., it's $4.50 a gallon. In the Netherlands is the highest one I could find, $4.80 a gallon. And this is really, you know, not far off where it's been for the whole year. So it's not just a big surge in the oil prices, it's because taxes here are so incredibly high.

For instance, in the U.K., 75 percent of what you pay at the pump goes to the government, 75 percent. So they use this as a huge revenue raiser. And also the environmental groups love it because they say that high oil prices, high prices at the pump means people will use their car less. So that's a real big reason why prices here are so high.

It's also a reason why prices here don't go as quickly up as they do in the states, because it's got so much tax involved, you only see a little incremental increases. So while people here are beginning to feel the pinch, I talked to a couple of companies yesterday.

They are paying a lot more money for their petrol than they were just a few months ago. But they say because there really isn't any inflation in the market, they can not use that -- they can not increase the prices of their products to consumers. So they are going to have to bite the bullet and pay for these rather, rather, you know, vicious and very quick increases that they are facing, things that nobody really, you know, that they weren't really building into their budgets. But again, prices here at least double or triple what you're facing at home.

COSTELLO: Well I must say though, in parts of California, the gas prices are as high as $3 a gallon, and because of the very same reasons that there are so many...

BOULDEN: Goodness.

COSTELLO: ... taxes attached to the price of gas.

BOULDEN: Yes, people here are talking a lot about alternative fuels now. And the two companies interviewed yesterday, one was a florist and one delivers groceries, it's a dot-com. You never think of a dot-com having to worry about oil prices, but they are very worried about the oil prices because they deliver 20,000 delivers a week to homes around southern England.

And they said, look, we're going to have to look at alternative fuel vehicles the next time around for the next generation vehicles because of what's happened. So again, that's something that groups here are very happy about that they are thinking what can we do to bring our costs down even because we can not control the oil prices. These companies can't do it at all. And if California is paying $3 a gallon, people here are still paying close to $5 a gallon, especially in the Netherlands.

COSTELLO: Yes, yes. All right. Jim Boulden live from London this morning.

Healthy French fries. Is that an oxymoron? Just ahead, how McDonald's is trying to make one of their most popular items diet friendly.

And on the subject of health, low carb versus low fat, why one may be more effective than the other.

(COMMERCIAL BREAK)

COSTELLO: Welcome back to DAYBREAK. Some 'Health Headlines' for you this morning.

The next time you pick up a soft drink, you may want to think twice. Researchers say carbonated drinks may raise your risk for cancer of the esophagus. The research comes out of a meeting of cancer and gastrointestinal experts.

Another health link to tell you about, a study of 824 nuns, priests and Roman Catholic brothers finds that diabetes may significantly increase the risk of developing Alzheimer's. Researchers calculate that diabetics face a 65 percent heightened risk of developing diabetes.

And finally, are you one of those low carbers? Well here is more research to pass along. Two studies of low carb diets finds they can help you lose weight in the short term but do not work any better than other diets after one year. I wish Chad were here, that way I could yell at him.

MARCIANO: He's an Atkins guy, isn't he?

COSTELLO: He's an -- he's an obsessive Atkins guy. I think he has a problem now.

MARCIANO: No, no, there's no problem there.

COSTELLO: Sure.

If you're one of the millions -- if you're one of the millions of Americans who have turned to low carb diets to lose weight, pay attention now, they may not be as effective as advertised. Didn't I just say that? I did. Or the problem might be you, actually.

Our medical correspondent Elizabeth Cohen has more for you.

051700CN.V98

COSTELLO: OK. Another healthy trend coming out...

MARCIANO: You don't want to tell them about your theory on diet and exercise?

COSTELLO: No. No, because I don't think people will like it.

MARCIANO: World class marathon runner right here, so she has her own theories. What was it?

COSTELLO: Well, no, I really do think that the lack of exercise is the real problem. And all you have to do is walk 30 minutes a day, that's it, 30 minutes a day.

MARCIANO: Really?

COSTELLO: That's it. You burn so many...

MARCIANO: But you're blessed with incredible metabolism.

COSTELLO: No, I am not. I am not. I exercise my bottom off.

MARCIANO: OK, I'm sorry. Don't hit me -- Carol. COSTELLO: OK.

MARCIANO: Chad will be back on Tuesday.

COSTELLO: We only have 10 seconds to talk about these -- this French fry maker. J.R. Simplot, that's the French fry maker, he is going to stop making artery clogging French fries for school cafeterias. They are going to bake the fries instead of dip them in hot oil like that. And that means the trans fats will go, which is the bad fat.

MARCIANO: Right, but it won't taste nearly as good.

COSTELLO: No.

MARCIANO: Which, for the kids, is fine. For us, though, we want the good stuff.

COSTELLO: Exactly.

MARCIANO: Just exercise, according to Carol Costello.

COSTELLO: We'll be back in a minute.

(COMMERCIAL BREAK)

COSTELLO: The search for answers. The 9/11 Commission moves to New York this morning and families get a chance to ask why.

This is DAYBREAK for Tuesday, May 18.

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


Aired May 18, 2004 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you, welcome to the second half-hour of DAYBREAK. From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Here are the latest headlines now.

A massive operation in Gaza, at least 13 Palestinians have been killed during rocket attacks from Israeli helicopters in the Rafah Refugee Camp. The attacks were followed by the arrival of around 100 tanks and bulldozers. Israel is demolishing Palestinian homes in the area to create a security buffer.

The independent 9/11 Commission opens hearings in New York City this morning. The commission is looking at the emergency response procedures at the World Trade Center.

In money news, rising gas prices may be making some people think twice about buying that big SUV. Sales for April dropped 15 percent. Analysts say prospective buyers are waiting to see if gas prices drop.

In sports, transsexuals have been cleared to compete in the upcoming Athens Olympics. The International Olympic Committee set new rules saying that anyone who has legally and physically changed sexes can compete as their new gender.

In culture, Martha Stewart is trying to get back on TV. "Daily Variety" reports Stewart met with a noted reality TV producer to work on a syndication deal. Her TV show was pulled off the air in most major markets after her conviction in March.

And in weather, a heavy hurricane season may be on the way. We'll find out more from Rob Marciano.

Good morning.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: All right, thank you, Rob.

Tensions running high in Gaza this hour, about 100 Israeli tanks and bulldozers rolled into the Rafah Refugee Camp today. Israel says 13 Palestinians have been killed in those helicopter attacks.

Matthew Chance live in Gaza with more for you. Matthew, tell us more.

MATTHEW CHANCE, CNN CORRESPONDENT: Carol, a big Israeli security operation under way in the south of the Gaza Strip in this Rafah Refugee Camp where tens of thousands of Palestinians live right up close to the Egyptian border. This is the area where, in the past week, there have been seven Israeli soldiers killed by Palestinian militants.

Because of that, Israeli forces have moved in in some considerable strength. You say at least 100 armored vehicles there, as well as tanks and bulldozers and armored personnel carriers, preparing to clear hundreds of Palestinian homes to increase the security barrier between itself, its forces along the Egyptian border and the Palestinian residential areas.

The Israeli army is saying that it's conducting house-to-house searches of the Rafah Refugee Camp in order to locate the strongholds of Palestinian militants and also to destroy houses that are being used by Palestinian militants as cover, either to shoot at troops or to dig tunnels into Egypt, which they use to smuggle weapons.

Well this has created a sense of fear and panic amongst ordinary Palestinians there. And many hundreds, according to the U.N., have left their homes, carrying whatever belongings they can with them to safer areas further back from the fighting -- Carol.

COSTELLO: Matthew Chance reporting live from Gaza this morning.

You can keep up with the latest on the crisis in the Middle East on our Web site. The address, CNN.com.

In Iraq this morning, the U.S. civilian administrator says Washington is not giving up on the goal of a democratic Iraq. Paul Bremer spoke at the funeral of Izzedine Salim, the Iraqi Governing Council president killed Monday in a suicide car bombing. Said Bremer, we must continue the political process.

This comes as U.S. officials in Baghdad decide to rename Abu Ghraib Prison. The prison where some Iraqi prisoners were abused will now be known as Camp Redemption. The Iraqi Governing Council recommended that name change.

And more troubles for the Halliburton Corporation. Auditors for the Pentagon are recommending withholding nearly $160 million in payments to Halliburton. The auditors say the company charged the military for meals that were never served.

We are just one day away from the first legal proceedings in the prison abuse scandal. Specialist Jeremy Sivits is expected to plead guilty to charges of conspiracy, dereliction of duty, cruelty and maltreatment of detainees.

Corporal Charles Graner will be arraigned tomorrow. He is charged with conspiracy, dereliction of duty, cruelty and maltreatment, assault, committing indecent acts, adultery and obstruction of justice.

Staff Sergeant Ivan Frederick also being arraigned. His charges include conspiracy, dereliction of duty, cruelty and maltreatment and assault and committing indecent acts.

And the third man to be arraigned tomorrow is Sergeant Javal Davis. He is charged with conspiracy, dereliction of duty, cruelty and maltreatment, providing a false statement and assaulting detainees.

Let's bring in our senior international editor David Clinch to talk more about this.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Yes, Carol, well one of the most interesting things, we are talking about our coverage of both the arraignments tomorrow and Specialist Sivits who will be the first one to be court-martialed tomorrow around this time, Eastern Time, 5:00 a.m. tomorrow. We'll have our own reporter there.

But one of the most interesting things, I've just been watching the Arab networks doing live interviews right now with the JAG officers who were in charge of this process at the courts with senior U.S. military and CPA officials. The Arab world is watching this very closely.

And we were talking about this earlier, the U.S. military and the CPA in Baghdad making it clear that a very important part of this process for them is showing how open this is to the Arab world.

COSTELLO: But how difficult, because they are going to have to have a translator in there, aren't they?

CLINCH: They do have translators. They have set it all up for translation to be done in real time over both the closed circuit TV for any Arab journalists that want to watch from outside and they will distribute Arabic translation of all the proceedings immediately following the proceedings every day, not just with tomorrow's court- martial, but all of them. So obviously a public relations aspect to this, but it's a very serious public relations aspect because that is one of the central parts of the story.

The Bush administration right from the top making it clear that this has been a big hit to the U.S. goal of displaying themselves as liberators leading up to the handover in Iraq. And they have got to deal with that.

COSTELLO: As far as who will testify, Jeremy Sivits, of course, will be in there.

CLINCH: Right.

COSTELLO: But who else will testify?

CLINCH: Well that depends on exactly who pleads and what kind of a court-martial they face. We have made the distinction already that Sivits, we're told, will be a special court-martial with the assumption that he will plead guilty. The assumption, and again, it is, at this point, an assumption that he will give out information. Others have yet to plead. When they are arraigned, we'll hear what they plea.

Based on their pleas, we will then find out whether they face special court-martials or the more severe general court-martials. Those take a little bit longer to put together. They will face stiffer sentences. And again, the question will they (INAUDIBLE)? We don't know yet. But the goal right now from the administration in Baghdad is to make sure that no matter who pleads that it's all open and that we and the Arab world, in particular, get to see how open this is.

COSTELLO: That will be very fascinating to watch, very interesting. Thank you -- David.

CLINCH: It will be. You're welcome.

COSTELLO: The Iraq prison abuse scandal is evoking strong reaction around the world. An artist brought it home to the streets of Seattle, Washington.

And reporter Pat McReynolds of CNN affiliate KING in Seattle reports on reaction.

(BEGIN VIDEOTAPE)

PAT MCREYNOLDS, KING-TV REPORTER (voice-over): What would evoke such emotion that grown men would scuffle in the streets of Seattle? Only the disturbing snapshot viewed around the world recreated in Fremont.

It started with an anonymous artist voicing silent protest, placing black hoods on the statues known as "Waiting for the Inner Urban." He even placed an electric chair hooked to a car battery in front.

UNIDENTIFIED MALE: You know this is headline news right here in Fremont.

MCREYNOLDS: Passersby couldn't help but be moved by the image.

UNIDENTIFIED FEMALE: I think it's really scary. My first reaction was, oh my God, why would somebody do that?

UNIDENTIFIED MALE: First I thought it looked like the five guys behind the guy they just beheaded last week.

MCREYNOLDS: But suddenly, this man charged the display, snatching the hoods and tearing off down the street before ditching the cloth in the waters of Lake Union.

TRIP ALLEN, GAVE CHASE: I asked him if it was his art piece, his statement and he said it is mine now.

MCREYNOLDS: Trip Allen gave chase. ALLEN: I wanted to get those bags back. I felt like the statement, that art, it's someone's statement that they made and he is violating that free speech. I wanted the bags back.

MCREYNOLDS: So did Tom Mellado who fished them out of the lake to bring back to the statues.

TOM MELLADO, RETRIEVED BAGS: There are venues for everyone's opinion. And I think if you -- if you decide to do something constructive to voice your own opinion, I mean that's fine. But to actually destroy someone else's opinion, I think that's a tragedy and I don't think it belongs in this country.

ALLEN: I think with a slipknot, tie them tight.

MCREYNOLDS: In the end, these strangers felt compelled to recreate the shocking display, not necessarily because they agree with it, but because no voice should be tossed aside.

MELLADO: I don't know how long it's going to last like this, but I think for a little while longer it will be great.

MCREYNOLDS: The artist for the work remains anonymous, but if their intention was to get people to think, they more than succeeded.

(END VIDEOTAPE)

COSTELLO: That report from Pat McReynolds of CNN affiliate KING.

Americans aren't the only ones feeling the pain at the pump. Just ahead, how people overseas are coping with gas prices that don't seem to be coming down anytime soon.

And later, yet another low carb versus low fat study. Why one method of dieting may be preferred over the other.

This is DAYBREAK for Tuesday, May 18.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 5:45 Eastern Time. Here is what's all new this morning.

Israeli rocket attacks kill at least 13 Palestinians in the Rafah Refugee Camp on the border with Egypt. Later, hundreds of Israeli tanks and bulldozers rolled in.

The independent commission looking into the September 11 attacks opens a hearing in New York City today. It will look at whether there were missteps and problems that led to deaths that could have been avoided.

In money news, Lucent Technologies agrees to pay a $25 million fine for not cooperating with government investigators in a securities fraud investigation. It is the largest penalty ever imposed by the SEC against a company for failing to cooperate. In sports, Denver Broncos tight end Shannon Sharpe says he is retiring after 14 years in the NFL. A CBS spokeswoman says Sharpe will replace Deion Sanders on the "NFL Today" pregame show. Hallelujah.

In culture, Don Hewitt, the creator of "60 Minutes," is being honored tonight in a farewell tribute. Hewitt, who is 81 years old, has spent 50 years in broadcast journalism. I bet he'd like to go on, too, huh -- Rob?

MARCIANO: Fifty years is a long time. In TV time, that's like 150.

COSTELLO: True.

MARCIANO: Good for him.

(WEATHER REPORT)

COSTELLO: All right, thank you, Rob.

Those are the latest headlines for you.

Well it has been a steady drone of discontent is getting louder by the day. Gas prices are too high. With Crude oil above $40 a barrel and gas topping two bucks a gallon, some industry execs are calling for the government to help by releasing emergency reserves. But the Energy Department has this to say about that. The president believes that the Strategic Petroleum Reserve should be used only for protection against oil supply disruption and not to manipulate price.

A Florida gas station owner feels your pain at the pump and tells it like it is with some amusing adjustments to the typical price sign. Take a look. See arm, leg and the bottom one, first born.

The oil price monster certainly isn't just a problem we face in this country. Let's see how it's hitting Europe.

Our Jim Boulden joins us live from London to talk more about that.

Jim, how high are gas prices there?

JIM BOULDEN, CNN CORRESPONDENT: Well, Carol, I have to say that people here do not feel sorry for Americans who drive those big SUVs, not at all. The comparison is that gas prices in Germany are about $4 a gallon and that's one of the lowest in Europe. Here in the U.K., it's $4.50 a gallon. In the Netherlands is the highest one I could find, $4.80 a gallon. And this is really, you know, not far off where it's been for the whole year. So it's not just a big surge in the oil prices, it's because taxes here are so incredibly high.

For instance, in the U.K., 75 percent of what you pay at the pump goes to the government, 75 percent. So they use this as a huge revenue raiser. And also the environmental groups love it because they say that high oil prices, high prices at the pump means people will use their car less. So that's a real big reason why prices here are so high.

It's also a reason why prices here don't go as quickly up as they do in the states, because it's got so much tax involved, you only see a little incremental increases. So while people here are beginning to feel the pinch, I talked to a couple of companies yesterday.

They are paying a lot more money for their petrol than they were just a few months ago. But they say because there really isn't any inflation in the market, they can not use that -- they can not increase the prices of their products to consumers. So they are going to have to bite the bullet and pay for these rather, rather, you know, vicious and very quick increases that they are facing, things that nobody really, you know, that they weren't really building into their budgets. But again, prices here at least double or triple what you're facing at home.

COSTELLO: Well I must say though, in parts of California, the gas prices are as high as $3 a gallon, and because of the very same reasons that there are so many...

BOULDEN: Goodness.

COSTELLO: ... taxes attached to the price of gas.

BOULDEN: Yes, people here are talking a lot about alternative fuels now. And the two companies interviewed yesterday, one was a florist and one delivers groceries, it's a dot-com. You never think of a dot-com having to worry about oil prices, but they are very worried about the oil prices because they deliver 20,000 delivers a week to homes around southern England.

And they said, look, we're going to have to look at alternative fuel vehicles the next time around for the next generation vehicles because of what's happened. So again, that's something that groups here are very happy about that they are thinking what can we do to bring our costs down even because we can not control the oil prices. These companies can't do it at all. And if California is paying $3 a gallon, people here are still paying close to $5 a gallon, especially in the Netherlands.

COSTELLO: Yes, yes. All right. Jim Boulden live from London this morning.

Healthy French fries. Is that an oxymoron? Just ahead, how McDonald's is trying to make one of their most popular items diet friendly.

And on the subject of health, low carb versus low fat, why one may be more effective than the other.

(COMMERCIAL BREAK)

COSTELLO: Welcome back to DAYBREAK. Some 'Health Headlines' for you this morning.

The next time you pick up a soft drink, you may want to think twice. Researchers say carbonated drinks may raise your risk for cancer of the esophagus. The research comes out of a meeting of cancer and gastrointestinal experts.

Another health link to tell you about, a study of 824 nuns, priests and Roman Catholic brothers finds that diabetes may significantly increase the risk of developing Alzheimer's. Researchers calculate that diabetics face a 65 percent heightened risk of developing diabetes.

And finally, are you one of those low carbers? Well here is more research to pass along. Two studies of low carb diets finds they can help you lose weight in the short term but do not work any better than other diets after one year. I wish Chad were here, that way I could yell at him.

MARCIANO: He's an Atkins guy, isn't he?

COSTELLO: He's an -- he's an obsessive Atkins guy. I think he has a problem now.

MARCIANO: No, no, there's no problem there.

COSTELLO: Sure.

If you're one of the millions -- if you're one of the millions of Americans who have turned to low carb diets to lose weight, pay attention now, they may not be as effective as advertised. Didn't I just say that? I did. Or the problem might be you, actually.

Our medical correspondent Elizabeth Cohen has more for you.

051700CN.V98

COSTELLO: OK. Another healthy trend coming out...

MARCIANO: You don't want to tell them about your theory on diet and exercise?

COSTELLO: No. No, because I don't think people will like it.

MARCIANO: World class marathon runner right here, so she has her own theories. What was it?

COSTELLO: Well, no, I really do think that the lack of exercise is the real problem. And all you have to do is walk 30 minutes a day, that's it, 30 minutes a day.

MARCIANO: Really?

COSTELLO: That's it. You burn so many...

MARCIANO: But you're blessed with incredible metabolism.

COSTELLO: No, I am not. I am not. I exercise my bottom off.

MARCIANO: OK, I'm sorry. Don't hit me -- Carol. COSTELLO: OK.

MARCIANO: Chad will be back on Tuesday.

COSTELLO: We only have 10 seconds to talk about these -- this French fry maker. J.R. Simplot, that's the French fry maker, he is going to stop making artery clogging French fries for school cafeterias. They are going to bake the fries instead of dip them in hot oil like that. And that means the trans fats will go, which is the bad fat.

MARCIANO: Right, but it won't taste nearly as good.

COSTELLO: No.

MARCIANO: Which, for the kids, is fine. For us, though, we want the good stuff.

COSTELLO: Exactly.

MARCIANO: Just exercise, according to Carol Costello.

COSTELLO: We'll be back in a minute.

(COMMERCIAL BREAK)

COSTELLO: The search for answers. The 9/11 Commission moves to New York this morning and families get a chance to ask why.

This is DAYBREAK for Tuesday, May 18.

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