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CNN Live At Daybreak

Preview of Today's 9/11 Commission Hearing in New York City; Possible Find of Sarin Gas in Artillery Shell Shot at U.S. Troops in Iraq

Aired May 18, 2004 - 06:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: 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.

And good morning to you.

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

Let me bring you up to date now.

The civilian administrator in Iraq, Paul Bremer, spoke as Izzadine Saleem's funeral today. Saleem, the president of the Iraqi Governing Council, was killed in a suicide bombing. Bremer told mourners that moving forward with the hand over of power will honor Saleem's memory.

Lessons learned from the September 11 terror attack -- that is the focus of two days of public hearings getting under way in New York. One key agenda item, the city's emergency response systems.

In money news, call it a crude awakening. Prices on the rise again, with crude oil futures closing at a 21-year high of more than $41.50 a barrel.

In sports, a 2-2 tie sets the stage for tonight's face-off between the Philadelphia Flyers and the Tampa Bay Lightning. Game five of the Eastern Conference hockey finals being played in Tampa.

In culture, comedian Jimmy Fallon says he is leaving "Saturday Night Live" to focus on his movie career. He and Tina Fey have put their own comic spin on the show's long running Weekend Update segment.

Oh, in weather, the National Weather Service is warning Florida swimmers to watch out for riptides. At least four people have died in riptides along the south Florida coast in recent days.

Let's say hello to Rob Marciano, in for Chad Myers this morning -- good morning, Rob.

ROB MARCIANO, CNN CORRESPONDENT: Hi, Carol.

(WEATHER REPORT) COSTELLO: Was there an emergency response problem on 9/11? That's one of the issues being taken up this morning by 9/11 Commission members as they hold two days of public hearings in New York City, less than two miles from the former site of the World Trade Center.

Joining us live from New York with a preview is CNN's Keith Oppenheim -- Keith, tell us more.

KEITH OPPENHEIM, CNN CORRESPONDENT: Good morning, Carol.

And when the 9/11 Commission convenes this morning, there's sure to be praised for the courage of police and firefighters on September 11. But there is also likely to be criticism of the poor communication and fierce competition between city departments. The question to be asked by the Commission today is -- are the agencies in charge of emergencies in New York changing?

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Get some rope!

OPPENHEIM (voice-over): New York is drilling. That's the message city officials want to send to the visiting 9/11 Commission, that its emergency agencies are cooperating better than before.

RAYMOND KELLY, NYPD COMMISSIONER: I believe we've done a lot more than any other city in America, and we'll continue to do more.

OPPENHEIM: There is pressure to do more. When the attacks came, communications between police and fire radios were so poor, many firefighters didn't hear a police helicopter warning the North Tower was about to fall. Officials believe more than 100 firefighters could have gotten out had they known.

GERARDE SEAN BAPTISTE, FATHER OF NEW YORK FIREFIGHTER: (UNINTELLIGIBLE) because of the faulty radio system of the fire department.

OPPENHEIM: Because of years of competition between departments, the 9/11 Commission will likely ask tough questions about preparedness. The hearings will also include recordings that illustrate problems with communications and rescue.

DOUGLAS MUZZIO, PUBLIC POLICY PROFESSOR, BARUCH COLLEGE: You'll see some of the horror of it. You'll see it both visually on video and you'll hear it in testimony. It's going to be gut wrenching. It's going to be emotional.

OPPENHEIM: And while the people in charge now explain what New York is doing, the people in charge then will explain what New York knew.

RUDY GIULIANI, FORMER NEW YORK CITY MAYOR: You have to have one incident commander. OPPENHEIM: Former Mayor Rudy Giuliani will take front and center Wednesday, and is expected to detail what information his administration had about possible terror attacks before September 11.

(END VIDEOTAPE)

OPPENHEIM: Today, Carol, city officials will likely talk about something called CIMS. It stands for Citywide Incident Management System. It's an agreement between the police department and the fire department as to who's in charge for various kinds of emergencies, police or fire. Critics will likely say that that agreement doesn't go far enough to delegate authority -- back to you.

COSTELLO: Keith Oppenheim live in New York this morning.

The Commission finishes those New York hearings on Wednesday. After that, the next hearings are scheduled for the second week of June, and they'll take place back in Washington. Those hearings will look at national crisis management and the 9/11 plot.

And you can get a preview of the Commission's meeting on "American Morning" with Bill and Soledad. Their guests, Commission members Thomas Kean and Lee Hamilton. That's in the 7:00 a.m. Eastern hour.

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 Izzadine Saleem, the Iraqi Governing Council president assassinated in a suicide car bombing. Says Bremer: "We must continue the political process."

Army Specialist Jeremy Sivits is said to be cooperating with military investigators looking into the abuse of Iraqi prisoners at the Abu Ghraib Prison. Sivits goes before a court-martial tomorrow in Baghdad. He's accused of maltreating prisoners.

U.S. officials in Baghdad have decided to rename the Abu Ghraib Prison. The prison will now be known as Camp Redemption. The Iraqi Governing Council recommended that name change.

And more troubles for Halliburton this morning. 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.

Still no definitive word on whether the makings of sarin gas were found in Iraq. More tests are being conducted today to see if the deadly nerve agent was present in an artillery shell.

David Ensor has more for you.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The suspect artillery shell was discovered Saturday near Baghdad Airport. BRIG. GEN. MARK KIMMITT, U.S. BRIGADIER GENERAL: It was a weapon that we believe was stocked from the ex-regime time and it had been thought to be an ordinary artillery shell set up to explode like an ordinary IED.

ENSOR: An IED, an improvised explosive device, made from what insurgents may have thought was a conventional, .155 millimeter artillery shell, like the many that are all over Iraq. A few soldiers who helped transport the exploded shell got mild symptoms consistent with exposure to sarin gas. They got quick treatment. They were lucky.

JONATHAN TUCKER, CHEM-BIO WEAPONS EXPERT: At higher doses, there would be muscle spasms followed by convulsions and finally death by respiratory paralysis.

ENSOR: The exploded shell is in the hands of the Iraqi Survey Group, the team led by the CIA's Charles Duelfer searching for weapons of mass destruction in Iraq. Officials say additional tests have to be done to make sure it really is sarin gas.

DONALD RUMSFELD, SECRETARY OF DEFENSE: We have to be careful.

ENSOR: If it is sarin gas, it would follow the discovery of a mustard gas shell about 10 days ago. If there are many more of them out there, that could help the president deflect criticism over his argument that weapons of mass destruction in Iraq were reason enough to go to war.

SEN. JON KYL (R-AZ), INTELLIGENCE COMMITTEE: It would be the first evidence in this conflict that the chemical weapons that Saddam Hussein once had -- and we had no evidence of destruction -- might now be surfacing and might be used against our troops.

ENSOR (on camera): In 1990, Iraq admitted to the U.N. that it had built some sarin gas artillery shells, prototypes it insisted had all been destroyed during testing. It now appears that was not true.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Former Iraqi hostage Thomas Hamill is doing just fine this morning. He's just undergone surgery to repair his injured arm. His wife tells us he had a skin graft operation in Columbus, Mississippi. As you know, Hamill was wounded in his right arm and captured when his convoy was ambushed in Baghdad last month.

As always, you can read up on all the Iraq related stories by logging onto our Web site. It's just a click away at cnn.com.

Well, you won't see any formal celebrations at the Vatican today, even though it is Pope John Paul II's 84th birthday. But the occasion will be marked in another way. We take you live to Europe.

Plus, the Saudis, the Chinese, the Democrats, the Republicans -- everyone has a finger to point when it comes to high gas prices. That's why the high price at the pump is today's hot talker.

Then more on a deadly chemical possibly found in Iraq -- sarin and the danger for U.S. soldiers.

This is DAYBREAK for May 18.

(COMMERCIAL BREAK)

COSTELLO: Happy birthday, Pope John Paul. Today the pontiff turns 84. There will be pie, candles and even a book.

CNN's Allessio Vinci joins us live from London to tell us more.

So what will the pope be doing today?

ALESSIO VINCI, CNN CORRESPONDENT: Well, a lot of meetings. It's a working day for Pope John Paul II at the Vatican. No special celebrations at the Vatican, because the Vatican does not celebrate pope's birthdays, but rather their election. The day of the election for this pope, of course, is the month of October, back 20 years ago, 25 years ago, rather, when Pope John Paul II was -- became the first non-Italian pope in over 450 years.

We do know, however, that some of his closest aides are preparing a small pie. His cook, Sister Germana, is preparing that pie, as she does every year. And we understand there will be some candles.

The book, yes, it's not a book that he's been given as a present, but rather a book that he wrote back last year in the summer months of last year. It hits bookstores around Italy today. The previous book by the pope was extremely successful, more than 20 million copies worldwide. It is being released today in Italy. It will be released in the coming weeks and months in other countries.

It is a book basically looking back at 20 years of the pope's life before he became pope in 1978m, filled with some spiritual reflections, as well as many anecdotes; a book that the pope really has used as going down memory lane, if you want -- Carol.

COSTELLO: I know that the pope will meet with President Bush soon.

What will the pope say to him?

VINCI: Well, we don't know what the pope is going to say, but we do know that the Vatican officials working with Pope John Paul II in recent days and weeks, have been extremely critical of the way things have been going in Iraq, especially in light of the prisoners abuse. There is a perception inside the Vatican that the United States has been following too much of an isolationist policies in the Middle East and that while they want to see the United States succeed in their effort to democratize, if you want, the Middle East -- this is a common goal that the Vatican, or many Vatican officials share -- they do realize that the war in Iraq, which the pope opposed vehemently last year, is not doing -- is not making things better, but that it's actually making things worse, and therefore we do expect the pope to tell President Bush that his policies at least should be readdressed, especially in Iraq, to involve more the international community and especially the United Nations -- Carol.

COSTELLO: Alessio Vinci reporting live from London this morning.

A massive operation in Gaza. At least 13 Palestinians have been killed during rocket attacks from Israeli helicopters in the Rafah Refuge 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 buffer zone.

The 9/11 Commission opens hearings today in New York City for the first time. Among the witnesses expected to testify, former New York Mayor Rudy Giuliani.

In money news, Donald Trump looks to make more of it. His newest book, called "The Way TO The Top," hits bookstores today.

And in sports, a first for professional basketball. The Nashville Rhythm of the ABA, the American Basketball Association, hired Ashley McElhiney as the franchise's first head coach. And take a look, as you can see, McElhiney also becomes the first ever female head coach of a men's pro team. That's a minor league basketball association, if you're wondering.

In culture, grab your straw hat, because "Hee-Haw" is coming back. Full episodes of the show are being released on DVD. There are some 600 episodes of "Hee-Haw," which aired from 1969 until 1997 -- Rob.

MARCIANO: Hee-haw.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Time now for a little business buzz.

Counting points on Weight Watchers? Soon you can go to the popular restaurant chain and keep on counting.

Carrie Lee has more on this story, live from the NASDAQ market site.

Tell us -- Carrie.

CARRIE LEE, CNN CORRESPONDENT: OK, Carol.

More options for dieters. Appleby's is rolling out in its 1,600 restaurants across the country 10 Weight Watchers items, including everything from appetizers, entrees, desserts. A couple of examples here, the Baha Chicken rollup, 490 calories, 10 grams of fat, 10 grams of fiber. And the Chocolate Raspberry Layer Cake, 230 calories, three grams of fat, three grams of fiber. So if you're watching your weight, if you like the Weight Watchers program, more options at Appleby's restaurants across the country starting now. COSTELLO: That's...

LEE: We have to talk about -- oh, go ahead. I'm sorry.

COSTELLO: No, I was just going to say that's fascinating, because most restaurants are jumping on the Atkin's plan.

LEE: Or the low carb plan. Well, you know, there's a debate -- you were talking about it earlier -- which is better, low carb, low fat? So more options for people, certainly.

COSTELLO: Well, and Weight Watchers has been losing, you know, customers. So maybe that's why it decided to merge with Appleby's, so to speak.

LEE: Right. To try to expand it, right.

COSTELLO: Yes.

LEE: Expand its idea a little bit. That's right.

We have to talk about gas prices, Carol. You knew this day was going to come. The average price for a regular gallon of gasoline topped the $2 mark for the first time yesterday. The average price above $2. That's up $0.20 from a month ago, up $0.52 from a year ago.

Gas prices have been rising because oil prices have been going up. That makes up nearly half the cost of gas. Los Angeles, the highest county in the country, the highest city in terms of gas prices, $2.35. So, it doesn't look like the prices are going to abate, at least any time in the very near future.

COSTELLO: All right, Carrie Lee live from the NASDAQ market site.

Still to come on DAYBREAK, it's a chemical we've heard about before, but not since Saddam Hussein promised to rid his country of dangerous chemical weapons. What is sarin? We're talking about this deadly substance with our military expert this morning.

(COMMERCIAL BREAK)

COSTELLO: Sarin gas -- is it being used by insurgents in Iraq? U.S. troops found an artillery shell loaded with chemicals. It exploded before it could be disarmed. More tests will be done today to see if the nerve agent was, indeed, present inside that artillery shell. And, of course, if it was, is there more sarin gas out there?

Let's head live to Washington and our security analyst, Ken Robinson -- good morning, Ken.

KEN ROBINSON, CNN MILITARY INTELLIGENCE ANALYST: Hi, Carol.

COSTELLO: So this artillery shell may have been loaded with the chemicals needed to create sarin.

If that's true, what does that tell you?

ROBINSON: Well, if they -- if the insurgents knew what they had, one, it tells me they're sloppy, because it's very hard to weaponize that artillery shell with an improvised explosive device. If they didn't know what they had, that's also frightening, because that means that some of these may be out there and may be employed again.

COSTELLO: How many tests have to be conducted before they figure out what they actually have?

ROBINSON: Well, Carol, when they do a field test, the first time, what the first noticeable effects, which were occurring on the soldiers involved, they likely used a CAM, a chemical agent monitoring device, which tries to sniff and determine whether there's precursor for the chemical G.B., which is the chemical name for sarin. And then they can do another field test with chemical paper.

But the larger field assay test needs to be sent to a chemical lab, which is in theater, and the Iraqi Survey Group is more than prepared to do that.

I'm surprised that we've not heard yet the results of that final test.

COSTELLO: You know, I seem to remember during the war that it took more than one test and sometimes the initial test was wrong.

ROBINSON: That's correct. There are false positives which occur. During the first Gulf War, there were many chemical monitoring devices that went off that gave false positives. It's actually over 15,000 I believe. And so this is a ticklish business. That's why it was surprising to see them come out early and state it in theater in the Central Command area of operation that it was sarin so early.

COSTELLO: Well, it took them a couple days to actually come out and say it. But you're right, the information came out pretty fast.

General Kimmitt said U.S. troops who found this artillery shell showed minor traces of exposure to sarin. You mentioned it a little while ago.

Describe what those symptoms would be.

ROBINSON: Well, sarin is an organophosphate, what's known as an O.P. And if you reach in your, under your kitchen counter, you probably have a can of Raid. And it's an insecticide. And all that sarin is, is a more aggressive weaponized version of that same material, organophosphate. And the first noticeable effects of when sarin attacks the body are pinpointed pupils, a tightening of the chest, runny eyes and nose and it can cause rapid onset to death.

What it does is it impedes the acetylcholine esterese, which is a big long word --

COSTELLO: Wow.

ROBINSON: ... that talks about functions in the brain and neurotransmitters.

COSTELLO: And I should mention these U.S. troops were treated and released, so they're perfectly OK today.

Ken, if this does prove to be sarin, will there be a return to the use of those chemical suits in battle that we saw during the active combat phase of this war?

ROBINSON: Well, certainly you can bet that they have all got them closer to them now. The Central Command, the intelligence there will assess this, try to determine the age of the round, the purity of the agent, to determine whether they think this is a new threat. I would think certainly if the agent purity of that round shows to be something that was manufactured recently, they will take a different look at their changing their military operational preparedness posture than if it's something they believe came from 1989 or the 1991, 1990 time period.

COSTELLO: Ken Robinson live in Washington.

Thank you very much for joining DAYBREAK.

ROBINSON: Thanks, Carol.

COSTELLO: Do ordinary Americans believe the U.S. military campaign in Iraq will be successful? We'll hear how people are answering that question when we check in with our Gallup poll editor- in-chief. We'll head live to Princeton, New Jersey.

And the first soldier to be court-martialed for the prison abuse scandal -- we take you live to Baghdad for a look at the case against Jeremy Sivits and hear about support for him on the home front.

And then, the fuming and finger pointing over gas prices -- the prices and the politics are fueling today's hot topic.

(COMMERCIAL BREAK)

COSTELLO: The case against one of their own -- the U.S. Army prepares for the first court-martial in the prison abuse scandal.

This is DAYBREAK for May 18.

And good morning to you.

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

Thank you for joining us this morning.

Let me bring you up to date now.

The top U.S. official in Iraq says that moving forward with the handover of power will honor the memory of Governing Council President Izzadine Saleem. Saleem was killed in a suicide bomb attack near Baghdad. Paul Bremer spoke at Saleem's funeral today. 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 huge SUV. Sales for April dropped 15 percent. Analysts say some prospective buyers are waiting to see if gas prices drop before they buy.

In the world of sports, transsexuals. 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, get this, Martha Stewart is trying to get back on television. "Daily Variety" is reporting 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 back in March.

And in weather, a heavy hurricane season may be on the way.

Let's head over to the forecast center for more with Rob -- good morning.

MARCIANO: Good morning, Carol.

(WEATHER REPORT)

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Aired May 18, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: 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.

And good morning to you.

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

Let me bring you up to date now.

The civilian administrator in Iraq, Paul Bremer, spoke as Izzadine Saleem's funeral today. Saleem, the president of the Iraqi Governing Council, was killed in a suicide bombing. Bremer told mourners that moving forward with the hand over of power will honor Saleem's memory.

Lessons learned from the September 11 terror attack -- that is the focus of two days of public hearings getting under way in New York. One key agenda item, the city's emergency response systems.

In money news, call it a crude awakening. Prices on the rise again, with crude oil futures closing at a 21-year high of more than $41.50 a barrel.

In sports, a 2-2 tie sets the stage for tonight's face-off between the Philadelphia Flyers and the Tampa Bay Lightning. Game five of the Eastern Conference hockey finals being played in Tampa.

In culture, comedian Jimmy Fallon says he is leaving "Saturday Night Live" to focus on his movie career. He and Tina Fey have put their own comic spin on the show's long running Weekend Update segment.

Oh, in weather, the National Weather Service is warning Florida swimmers to watch out for riptides. At least four people have died in riptides along the south Florida coast in recent days.

Let's say hello to Rob Marciano, in for Chad Myers this morning -- good morning, Rob.

ROB MARCIANO, CNN CORRESPONDENT: Hi, Carol.

(WEATHER REPORT) COSTELLO: Was there an emergency response problem on 9/11? That's one of the issues being taken up this morning by 9/11 Commission members as they hold two days of public hearings in New York City, less than two miles from the former site of the World Trade Center.

Joining us live from New York with a preview is CNN's Keith Oppenheim -- Keith, tell us more.

KEITH OPPENHEIM, CNN CORRESPONDENT: Good morning, Carol.

And when the 9/11 Commission convenes this morning, there's sure to be praised for the courage of police and firefighters on September 11. But there is also likely to be criticism of the poor communication and fierce competition between city departments. The question to be asked by the Commission today is -- are the agencies in charge of emergencies in New York changing?

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Get some rope!

OPPENHEIM (voice-over): New York is drilling. That's the message city officials want to send to the visiting 9/11 Commission, that its emergency agencies are cooperating better than before.

RAYMOND KELLY, NYPD COMMISSIONER: I believe we've done a lot more than any other city in America, and we'll continue to do more.

OPPENHEIM: There is pressure to do more. When the attacks came, communications between police and fire radios were so poor, many firefighters didn't hear a police helicopter warning the North Tower was about to fall. Officials believe more than 100 firefighters could have gotten out had they known.

GERARDE SEAN BAPTISTE, FATHER OF NEW YORK FIREFIGHTER: (UNINTELLIGIBLE) because of the faulty radio system of the fire department.

OPPENHEIM: Because of years of competition between departments, the 9/11 Commission will likely ask tough questions about preparedness. The hearings will also include recordings that illustrate problems with communications and rescue.

DOUGLAS MUZZIO, PUBLIC POLICY PROFESSOR, BARUCH COLLEGE: You'll see some of the horror of it. You'll see it both visually on video and you'll hear it in testimony. It's going to be gut wrenching. It's going to be emotional.

OPPENHEIM: And while the people in charge now explain what New York is doing, the people in charge then will explain what New York knew.

RUDY GIULIANI, FORMER NEW YORK CITY MAYOR: You have to have one incident commander. OPPENHEIM: Former Mayor Rudy Giuliani will take front and center Wednesday, and is expected to detail what information his administration had about possible terror attacks before September 11.

(END VIDEOTAPE)

OPPENHEIM: Today, Carol, city officials will likely talk about something called CIMS. It stands for Citywide Incident Management System. It's an agreement between the police department and the fire department as to who's in charge for various kinds of emergencies, police or fire. Critics will likely say that that agreement doesn't go far enough to delegate authority -- back to you.

COSTELLO: Keith Oppenheim live in New York this morning.

The Commission finishes those New York hearings on Wednesday. After that, the next hearings are scheduled for the second week of June, and they'll take place back in Washington. Those hearings will look at national crisis management and the 9/11 plot.

And you can get a preview of the Commission's meeting on "American Morning" with Bill and Soledad. Their guests, Commission members Thomas Kean and Lee Hamilton. That's in the 7:00 a.m. Eastern hour.

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 Izzadine Saleem, the Iraqi Governing Council president assassinated in a suicide car bombing. Says Bremer: "We must continue the political process."

Army Specialist Jeremy Sivits is said to be cooperating with military investigators looking into the abuse of Iraqi prisoners at the Abu Ghraib Prison. Sivits goes before a court-martial tomorrow in Baghdad. He's accused of maltreating prisoners.

U.S. officials in Baghdad have decided to rename the Abu Ghraib Prison. The prison will now be known as Camp Redemption. The Iraqi Governing Council recommended that name change.

And more troubles for Halliburton this morning. 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.

Still no definitive word on whether the makings of sarin gas were found in Iraq. More tests are being conducted today to see if the deadly nerve agent was present in an artillery shell.

David Ensor has more for you.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The suspect artillery shell was discovered Saturday near Baghdad Airport. BRIG. GEN. MARK KIMMITT, U.S. BRIGADIER GENERAL: It was a weapon that we believe was stocked from the ex-regime time and it had been thought to be an ordinary artillery shell set up to explode like an ordinary IED.

ENSOR: An IED, an improvised explosive device, made from what insurgents may have thought was a conventional, .155 millimeter artillery shell, like the many that are all over Iraq. A few soldiers who helped transport the exploded shell got mild symptoms consistent with exposure to sarin gas. They got quick treatment. They were lucky.

JONATHAN TUCKER, CHEM-BIO WEAPONS EXPERT: At higher doses, there would be muscle spasms followed by convulsions and finally death by respiratory paralysis.

ENSOR: The exploded shell is in the hands of the Iraqi Survey Group, the team led by the CIA's Charles Duelfer searching for weapons of mass destruction in Iraq. Officials say additional tests have to be done to make sure it really is sarin gas.

DONALD RUMSFELD, SECRETARY OF DEFENSE: We have to be careful.

ENSOR: If it is sarin gas, it would follow the discovery of a mustard gas shell about 10 days ago. If there are many more of them out there, that could help the president deflect criticism over his argument that weapons of mass destruction in Iraq were reason enough to go to war.

SEN. JON KYL (R-AZ), INTELLIGENCE COMMITTEE: It would be the first evidence in this conflict that the chemical weapons that Saddam Hussein once had -- and we had no evidence of destruction -- might now be surfacing and might be used against our troops.

ENSOR (on camera): In 1990, Iraq admitted to the U.N. that it had built some sarin gas artillery shells, prototypes it insisted had all been destroyed during testing. It now appears that was not true.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Former Iraqi hostage Thomas Hamill is doing just fine this morning. He's just undergone surgery to repair his injured arm. His wife tells us he had a skin graft operation in Columbus, Mississippi. As you know, Hamill was wounded in his right arm and captured when his convoy was ambushed in Baghdad last month.

As always, you can read up on all the Iraq related stories by logging onto our Web site. It's just a click away at cnn.com.

Well, you won't see any formal celebrations at the Vatican today, even though it is Pope John Paul II's 84th birthday. But the occasion will be marked in another way. We take you live to Europe.

Plus, the Saudis, the Chinese, the Democrats, the Republicans -- everyone has a finger to point when it comes to high gas prices. That's why the high price at the pump is today's hot talker.

Then more on a deadly chemical possibly found in Iraq -- sarin and the danger for U.S. soldiers.

This is DAYBREAK for May 18.

(COMMERCIAL BREAK)

COSTELLO: Happy birthday, Pope John Paul. Today the pontiff turns 84. There will be pie, candles and even a book.

CNN's Allessio Vinci joins us live from London to tell us more.

So what will the pope be doing today?

ALESSIO VINCI, CNN CORRESPONDENT: Well, a lot of meetings. It's a working day for Pope John Paul II at the Vatican. No special celebrations at the Vatican, because the Vatican does not celebrate pope's birthdays, but rather their election. The day of the election for this pope, of course, is the month of October, back 20 years ago, 25 years ago, rather, when Pope John Paul II was -- became the first non-Italian pope in over 450 years.

We do know, however, that some of his closest aides are preparing a small pie. His cook, Sister Germana, is preparing that pie, as she does every year. And we understand there will be some candles.

The book, yes, it's not a book that he's been given as a present, but rather a book that he wrote back last year in the summer months of last year. It hits bookstores around Italy today. The previous book by the pope was extremely successful, more than 20 million copies worldwide. It is being released today in Italy. It will be released in the coming weeks and months in other countries.

It is a book basically looking back at 20 years of the pope's life before he became pope in 1978m, filled with some spiritual reflections, as well as many anecdotes; a book that the pope really has used as going down memory lane, if you want -- Carol.

COSTELLO: I know that the pope will meet with President Bush soon.

What will the pope say to him?

VINCI: Well, we don't know what the pope is going to say, but we do know that the Vatican officials working with Pope John Paul II in recent days and weeks, have been extremely critical of the way things have been going in Iraq, especially in light of the prisoners abuse. There is a perception inside the Vatican that the United States has been following too much of an isolationist policies in the Middle East and that while they want to see the United States succeed in their effort to democratize, if you want, the Middle East -- this is a common goal that the Vatican, or many Vatican officials share -- they do realize that the war in Iraq, which the pope opposed vehemently last year, is not doing -- is not making things better, but that it's actually making things worse, and therefore we do expect the pope to tell President Bush that his policies at least should be readdressed, especially in Iraq, to involve more the international community and especially the United Nations -- Carol.

COSTELLO: Alessio Vinci reporting live from London this morning.

A massive operation in Gaza. At least 13 Palestinians have been killed during rocket attacks from Israeli helicopters in the Rafah Refuge 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 buffer zone.

The 9/11 Commission opens hearings today in New York City for the first time. Among the witnesses expected to testify, former New York Mayor Rudy Giuliani.

In money news, Donald Trump looks to make more of it. His newest book, called "The Way TO The Top," hits bookstores today.

And in sports, a first for professional basketball. The Nashville Rhythm of the ABA, the American Basketball Association, hired Ashley McElhiney as the franchise's first head coach. And take a look, as you can see, McElhiney also becomes the first ever female head coach of a men's pro team. That's a minor league basketball association, if you're wondering.

In culture, grab your straw hat, because "Hee-Haw" is coming back. Full episodes of the show are being released on DVD. There are some 600 episodes of "Hee-Haw," which aired from 1969 until 1997 -- Rob.

MARCIANO: Hee-haw.

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COSTELLO: Those are the latest headlines for you this morning.

Time now for a little business buzz.

Counting points on Weight Watchers? Soon you can go to the popular restaurant chain and keep on counting.

Carrie Lee has more on this story, live from the NASDAQ market site.

Tell us -- Carrie.

CARRIE LEE, CNN CORRESPONDENT: OK, Carol.

More options for dieters. Appleby's is rolling out in its 1,600 restaurants across the country 10 Weight Watchers items, including everything from appetizers, entrees, desserts. A couple of examples here, the Baha Chicken rollup, 490 calories, 10 grams of fat, 10 grams of fiber. And the Chocolate Raspberry Layer Cake, 230 calories, three grams of fat, three grams of fiber. So if you're watching your weight, if you like the Weight Watchers program, more options at Appleby's restaurants across the country starting now. COSTELLO: That's...

LEE: We have to talk about -- oh, go ahead. I'm sorry.

COSTELLO: No, I was just going to say that's fascinating, because most restaurants are jumping on the Atkin's plan.

LEE: Or the low carb plan. Well, you know, there's a debate -- you were talking about it earlier -- which is better, low carb, low fat? So more options for people, certainly.

COSTELLO: Well, and Weight Watchers has been losing, you know, customers. So maybe that's why it decided to merge with Appleby's, so to speak.

LEE: Right. To try to expand it, right.

COSTELLO: Yes.

LEE: Expand its idea a little bit. That's right.

We have to talk about gas prices, Carol. You knew this day was going to come. The average price for a regular gallon of gasoline topped the $2 mark for the first time yesterday. The average price above $2. That's up $0.20 from a month ago, up $0.52 from a year ago.

Gas prices have been rising because oil prices have been going up. That makes up nearly half the cost of gas. Los Angeles, the highest county in the country, the highest city in terms of gas prices, $2.35. So, it doesn't look like the prices are going to abate, at least any time in the very near future.

COSTELLO: All right, Carrie Lee live from the NASDAQ market site.

Still to come on DAYBREAK, it's a chemical we've heard about before, but not since Saddam Hussein promised to rid his country of dangerous chemical weapons. What is sarin? We're talking about this deadly substance with our military expert this morning.

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COSTELLO: Sarin gas -- is it being used by insurgents in Iraq? U.S. troops found an artillery shell loaded with chemicals. It exploded before it could be disarmed. More tests will be done today to see if the nerve agent was, indeed, present inside that artillery shell. And, of course, if it was, is there more sarin gas out there?

Let's head live to Washington and our security analyst, Ken Robinson -- good morning, Ken.

KEN ROBINSON, CNN MILITARY INTELLIGENCE ANALYST: Hi, Carol.

COSTELLO: So this artillery shell may have been loaded with the chemicals needed to create sarin.

If that's true, what does that tell you?

ROBINSON: Well, if they -- if the insurgents knew what they had, one, it tells me they're sloppy, because it's very hard to weaponize that artillery shell with an improvised explosive device. If they didn't know what they had, that's also frightening, because that means that some of these may be out there and may be employed again.

COSTELLO: How many tests have to be conducted before they figure out what they actually have?

ROBINSON: Well, Carol, when they do a field test, the first time, what the first noticeable effects, which were occurring on the soldiers involved, they likely used a CAM, a chemical agent monitoring device, which tries to sniff and determine whether there's precursor for the chemical G.B., which is the chemical name for sarin. And then they can do another field test with chemical paper.

But the larger field assay test needs to be sent to a chemical lab, which is in theater, and the Iraqi Survey Group is more than prepared to do that.

I'm surprised that we've not heard yet the results of that final test.

COSTELLO: You know, I seem to remember during the war that it took more than one test and sometimes the initial test was wrong.

ROBINSON: That's correct. There are false positives which occur. During the first Gulf War, there were many chemical monitoring devices that went off that gave false positives. It's actually over 15,000 I believe. And so this is a ticklish business. That's why it was surprising to see them come out early and state it in theater in the Central Command area of operation that it was sarin so early.

COSTELLO: Well, it took them a couple days to actually come out and say it. But you're right, the information came out pretty fast.

General Kimmitt said U.S. troops who found this artillery shell showed minor traces of exposure to sarin. You mentioned it a little while ago.

Describe what those symptoms would be.

ROBINSON: Well, sarin is an organophosphate, what's known as an O.P. And if you reach in your, under your kitchen counter, you probably have a can of Raid. And it's an insecticide. And all that sarin is, is a more aggressive weaponized version of that same material, organophosphate. And the first noticeable effects of when sarin attacks the body are pinpointed pupils, a tightening of the chest, runny eyes and nose and it can cause rapid onset to death.

What it does is it impedes the acetylcholine esterese, which is a big long word --

COSTELLO: Wow.

ROBINSON: ... that talks about functions in the brain and neurotransmitters.

COSTELLO: And I should mention these U.S. troops were treated and released, so they're perfectly OK today.

Ken, if this does prove to be sarin, will there be a return to the use of those chemical suits in battle that we saw during the active combat phase of this war?

ROBINSON: Well, certainly you can bet that they have all got them closer to them now. The Central Command, the intelligence there will assess this, try to determine the age of the round, the purity of the agent, to determine whether they think this is a new threat. I would think certainly if the agent purity of that round shows to be something that was manufactured recently, they will take a different look at their changing their military operational preparedness posture than if it's something they believe came from 1989 or the 1991, 1990 time period.

COSTELLO: Ken Robinson live in Washington.

Thank you very much for joining DAYBREAK.

ROBINSON: Thanks, Carol.

COSTELLO: Do ordinary Americans believe the U.S. military campaign in Iraq will be successful? We'll hear how people are answering that question when we check in with our Gallup poll editor- in-chief. We'll head live to Princeton, New Jersey.

And the first soldier to be court-martialed for the prison abuse scandal -- we take you live to Baghdad for a look at the case against Jeremy Sivits and hear about support for him on the home front.

And then, the fuming and finger pointing over gas prices -- the prices and the politics are fueling today's hot topic.

(COMMERCIAL BREAK)

COSTELLO: The case against one of their own -- the U.S. Army prepares for the first court-martial in the prison abuse scandal.

This is DAYBREAK for May 18.

And good morning to you.

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

Thank you for joining us this morning.

Let me bring you up to date now.

The top U.S. official in Iraq says that moving forward with the handover of power will honor the memory of Governing Council President Izzadine Saleem. Saleem was killed in a suicide bomb attack near Baghdad. Paul Bremer spoke at Saleem's funeral today. 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 huge SUV. Sales for April dropped 15 percent. Analysts say some prospective buyers are waiting to see if gas prices drop before they buy.

In the world of sports, transsexuals. 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, get this, Martha Stewart is trying to get back on television. "Daily Variety" is reporting 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 back in March.

And in weather, a heavy hurricane season may be on the way.

Let's head over to the forecast center for more with Rob -- good morning.

MARCIANO: Good morning, Carol.

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