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CNN Live At Daybreak
U.S. Commander Orders Major Review of Jails in Afghanistan; Ahmed Chalabi Factor
Aired May 21, 2004 - 06:30 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: More details of abuse this morning from inside Abu Ghraib. On the front page of "The Washington Post," new worse pictures.
This picture appears to show a U.S. soldier with a baton, apparently ordering a naked and dirty detainee to walk a line with his ankles handcuffed.
In other picture, a U.S. soldier uses both hands to apparently restrain a dog, which is facing the detainee. The detainee appears to be handcuffed as well.
The "Post" also describes sworn statements by detainees, saying they were ridden like animals, sexually fondled by female soldiers, and forced to retrieve their food from toilets.
Hundreds more prisoners are being released from Abu Ghraib today. These are new pictures that we got out of Baghdad. Several buses left the facility used by Saddam Hussein to detain political opponents. Close to 500 prisoners are being released. About 300 were released last week.
And there is word from Afghanistan this morning of a top-to- bottom review. The U.S. commander there has ordered an investigation into detention facilities. It comes after allegations of physical and sexual abuse.
Let's head live to Kabul and Ryan Chilcote to tell us more.
Hello -- Ryan.
RYAN CHILCOTE, CNN CORRESPONDENT: Good morning, Carol.
Well, there are really a large number of investigations here in Afghanistan, U.S. investigations into prisoner abuse.
First of all, there is that review you were just mentioning ordered by the top commander here, General David Barno. He has ordered a review of all detention facilities here in this country. The report -- the assessment is due out in mid-June.
Now, in addition to that, there are several investigations into some specific incidents of alleged prisoner abuse here in Afghanistan, one that has been launched by the CIA. The CIA is looking at the circumstances of the death of one detainee at a detention facility in northeastern Afghanistan in 2003. The detainee there dying after being interrogated by a private contractor that was working for the U.S. government.
The U.S. Army is looking into the circumstances of two deaths of detainees at the Bagram airfield. This was just north here, north of the capital.
Now, these detainees passed away in December of 2002 while they were in the custody of U.S. soldiers. The U.S. Army is also looking at some recent allegations of abuse, including one that comes from an Afghan policeman, who says he was sexually abused by U.S. soldiers -- Carol.
COSTELLO: Ryan, a question for you. Is there any connection between the investigation into prisons within Afghanistan and the investigations going on right now in Iraq?
CHILCOTE: Well the U.S. military spokesman here acknowledges that all of the attention to the situation in Iraq has increased the focus on the allegations of prison abuse here. But the military here says that they take the issue of how they treat their detainees very seriously and review it constantly anyway. So, this review is not specifically linked to what we're seeing in Iraq.
Nonetheless, the question, of course, really is: Is there a common pattern common to both Iraq and Afghanistan, a pattern of abuse in both countries? The U.S. military does not think so. In fact, General Abizaid, who is responsible for both wars, says that he asked the U.S. Army inspector general that question and was told no, there isn't.
The other question, and this is the important one, is: Did these practices, some practices of mistreatment of detainees migrate from Afghanistan to Iraq? And what we're seeing right now is that at least one military intelligence unit that was interrogating prisoners here was then in Iraq in that Abu Ghraib prison in the detention facility. So, there's a lot of focus on whether they brought their practices from here to there -- Carol.
COSTELLO: Ryan Chilcote reporting live from Kabul, Afghanistan, this morning.
The Iraqi Governing Council member, Ahmed Chalabi, has a really messy office to clean up this morning. Exactly 24 hours ago, Iraqi police, accompanied by American troops, were raiding Chalabi's compound. Senior U.S. officials say an associate of Chalabi may be an Iranian intelligence agent. Chalabi says the raid shows the U.S.-led Coalition Provisional authority is failing, and there are many out there still scratching their heads about Ahmed Chalabi.
As I said, his compounded is raided in Iraq. He criticizes American policy there, but says he is America's best friend. Listen to what he said after that raid at his headquarters in Baghdad.
(BEGIN VIDEO CLIP)
AHMED CHALABI, IRAQI GOVERNING COUNCIL: I am America's best friend in Iraq. If the CPA finds it necessary to direct an armed attack against my home, you can see the state of relations between the CPA and the Iraqi people.
(END VIDEO CLIP)
COSTELLO: What's this thing about? Has he been playing a high- stakes power grab all along?
Let's head live to Washington and Patrick Bashon, a senior fellow in the Cato Institute Center for Representative Government.
Good morning.
PATRICK BASHAM, CATO INSTITUTE: Good morning.
COSTELLO: Chalabi has not been charged in this mess, but 16 of his associates have. Is he next?
BASHAM: He may well be, but it may not be necessary to charge him. Basically what's happening here is the United States is sending a message to the Iraqi people that he is no longer our guy. You don't view him as legitimate. We no longer view him as a legitimate future leader or future power player in Iraq. And so, he is not going to have a role as far as we're concerned in a newly-sovereign Iraq after June 30.
COSTELLO: These charges of giving intelligence to Iran are quite disturbing. Do you think that he himself had anything to do with that? Because he does have ties to Iranian Shiites, right?
BASHAM: Yes, he's had ties for some time going back to the shah of Iran. I would imagine that it's unlikely that he does, but some of his people are, you know, dubious to say the least. And that is possible. But the point here is that he has crossed swords with the American government on a variety of issues, including relations with Iran.
And it is just got to the breaking point as far as the State Department particularly, but also the Bush administration more generally is concerned. And we have cut our ties. He is no longer getting funding. And now, we're seeing that his people, and perhaps even he, will be prosecuted.
COSTELLO: But, Patrick, how did he get this far along? I mean, supposedly he feeds the United States this information of weapons of mass destruction before the war. And then he, like, insinuates himself into the Iraqi Governing Council. Is he, like, the best con man in the world? Or is he remotely sincere?
BASHAM: Well, maybe it's somewhere in between. I mean, basically, for a long time he was the best hope we had in the sense that he appeared to have decent intelligence. He was the guy most committed to getting rid of Saddam Hussein. And so, we gave him tens of millions of dollars over a number of years. He appeared to have Iraqis behind him. It turns out that his intelligence wasn't so good, and he didn't have anybody in Iraq behind him.
But he was useful to us, or we felt he was at the time. Now, we see that it's a pretty -- you know, it's a pretty empty situation as far as he and his organization are concerned. He can't do anything for us anymore really. So...
COSTELLO: Well, Patrick, to sum it up, what will his ouster mean? And how has he harmed the burgeoning Iraqi government?
BASHAM: Well, I don't think he has. Actually, his ouster will help, because he's not popular in Iraq. Iraqis didn't want him on the Governing Council. They don't want him to play a role in the future of Iraq. And so, this is actually a net plus for the Bush administration.
COSTELLO: Patrick Basham joining us live from Washington, D.C. from the Cato Institute. Thank you very much.
BASHAM: My pleasure.
COSTELLO: You can hear what Ahmed Chalabi has to say about this when he talks with Paula Zahn. You can see that 8:00 Eastern tonight.
The terror alert remains at yellow this morning, but there is cause for concern. The FBI is now on alert for suicide bombers within the United States. It's alerted local police, and wants you to report any suspicious activity. And I know what you're thinking. No, the threats are not any more specific than that.
In New York, transit officials want to ban photography on subways and buses. They say a ban could help prevent surveillance by terrorists on the nation's largest mass transit system. That would mean no more picture-taking aboard a train.
And the Department of Homeland Security is telling passenger railways to do more for security. For example, ask passengers and employees to report unattended property or suspicious behavior, or, in some places, remove trash cans that would be used to hide bombs.
Coming up on DAYBREAK, what's hot at a theater near you this weekend? Hollywood serves up ogres, disasters and a little bit of controversy. We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Time for a little business buzz. Here it comes. Workers at SBC have begun their strike, and that will impact homes in 13 states. But will it directly affect you, you know, as in your phone?
Carrie Lee has more on that live from the Nasdaq Marketsite.
So, will it affect phone lines at home?
CARRIE LEE, CNN FINANCIAL NEWS: Well, Carol, SBC for its part says so far things have gone pretty smoothly. They haven't reported any problems. But as you said, SBC does operate in 13 states. We're talking about nearly 100,000 unionized employees at the local phone giant striking. They are protesting the company's latest contract offer. The big issues here: medical benefits and the level of outsourcing.
Here's a shot yesterday of protestors in Connecticut. Basically when some local phone companies have gone on strike in the past, it hasn't affected basic calling, but it has slowed responses to service requests for new installations or repairs.
If you are an SBC customer, if you're experiencing any phone problems, you should probably call the company, but it could take a little longer than normal to get things worked out.
In the meantime, as this strike goes on -- and by the way, it's set to end at 12:01 a.m. on Tuesday -- they're having some managers and retirees maintain operations. So, so far no issues, at least from SBC's standpoint, but we'll keep you posted if things change.
Turning to stocks, we saw a pretty flat session yesterday. Futures this morning are looking very strong. One stock to watch: Nordstrom, the upscale retailer, reporting profits that beat the Wall Street expectation in the last quarter. Same-store sales a key gauge for retailers also outpacing the consensus.
So, Nordstrom was a nice gainer last night. We'll see what it does today.
Carol -- back to you.
COSTELLO: All right, Carrie Lee live from the Nasdaq Marketsite.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
A bus ride and 25 bucks in cash -- that's what almost 500 Iraqi prisoners are getting today. The U.S. military is dropping them off near their homes as it cuts the number of inmates at Abu Ghraib prison.
Israel is redeploying its troops in Gaza, which is pulling out of the Rafah refugee camp. On Tuesday, Israel launched a major operation to destroy tunnels used to smuggle weapons. Forty Palestinians have been killed in the clashes.
In money news, oh, the pain for a little shady gain. Richard Strong, the founder and former CEO of Strong Financial, has agreed to pay a $60 million fine. He was accused of making nearly $2 million from improper mutual fund trading.
In sports, Eric Musselman is out as coach of the Golden State Warriors. A Pac-10 source says Stanford basketball Coach Mike Montgomery will be the Warriors' new coach.
In culture, Alicia Keys has sold a lot of R&B hip-hop records. But can she make "The New York Times" best-seller list? We'll know come November. That's when the first of two books she signed a deal to write is due at bookstores. But if the (UNINTELLIGIBLE) of her song, "If I Ain't Got You," is any indicator, don't expect a literary masterpiece.
(WEATHER BREAK)
COSTELLO: Those are the latest headlines for you this morning.
Now let's head live to New York to check in with Bill and Soledad.
And you guys are going to have more on this new terror alert about suicide bombers in this country.
BILL HEMMER, CNN ANCHOR: Yes, we certainly are, Carol. A lot of interesting details, too. The FBI putting out to its agents, 18,000 strong across the country, being on alert for suicide bombers. We'll let you know what's in that bulletin, what they need to look out for, and whether or not any of this even helps ultimately in the end. We'll get to it.
SOLEDAD O'BRIEN, CNN ANCHOR: Also this morning, Carol, of course, we're following this prisoner abuse scandal. There are some new photos in "The Washington Post" this morning. We're going to share some of those with you. Also, we'll talk to Barbara Starr from the Pentagon.
And the question this morning, it comes from a professor who did a study 33 years ago. He claims that is a capacity for great cruelty in all of us. We'll explain about that experiment. It's fascinating.
HEMMER: Also, remember Courtney from yesterday, 3 and a half years old, lost in Baltimore? Apparently, Courtney may not be her real name, and it may be that the mother has come forward. We'll talk to two attorneys today. They'll talk about why it took two weeks for the woman to come forward. They're going to be in court today, Carol, trying to figure out who gets the right to this girl and who really is her mom and her dad. So, we'll have it all for you.
O'BRIEN: Confusing story there.
HEMMER: Interesting twist, though.
O'BRIEN: Yes.
HEMMER: You know, we kind of knew yesterday it was going to come down this way.
O'BRIEN: Yes, there was something going on.
HEMMER: Yes. Hey, happy Friday to you, Carol.
COSTELLO: It's got ugly domestic situation all over it.
HEMMER: Yes.
COSTELLO: Did you say happy Friday?
HEMMER: Yes, I said happy Friday. COSTELLO: I've been waiting for Friday since Monday, Bill.
HEMMER: Isn't that the truth?
O'BRIEN: Can I tell you? Me too.
COSTELLO: We'll see you guys in 10 minutes.
HEMMER: Have a great weekend.
COSTELLO: Thank you.
HEMMER: Bye-bye.
COSTELLO: Coming up, it's the season of the blockbuster, and audiences won't be disappointed if they're looking for a big Hollywood production. We'll give you a sneak peak.
And see why these young people keep working their way up and up and up. We'll be back.
(COMMERCIAL BREAK)
COSTELLO: I know what you're going to do this weekend, especially if you have kids. You'll be visiting a green ogre and irritating donkey and a very suave kitty cat.
Our movie critic, Tom O'Neil, joins us from New York. He's from "In Touch Weekly."
Good morning.
TOM O'NEIL, "IN TOUCH WEEKLY: Good morning, Carol.
COSTELLO: So, let's start with "Shrek 2," shall we?
O'NEIL: Absolutely. It's so wonderful to have good news for moviegoers that a sequel is almost as good as the original.
COSTELLO: Oh, that's so nice to hear.
O'NEIL: It really is. This picks up where the original left off, where the jolly green ogre marries the princess, but mom and dad don't like the ogre much. This isn't going to be happily ever after, because they send Puss N' Boots after him, and Puss N' Boots steals this movie. It's played by Antonio Banderas. But check out...
COSTELLO: Oh, you didn't say his name right. It's Antonio Banderas!
O'NEIL: But check out the evil ugly stepsister, though, Carol. You probably know this because you're a CNN gal.
COSTELLO: I do.
O'NEIL: You tell the viewers who is behind that ugly (UNINTELLIGIBLE)?
COSTELLO: Larry King is the voice of the ugly stepsister, and she has a 5:00 shadow and the whole bit.
O'NEIL: Has he ever looked lovelier?
COSTELLO: He got really great reviews, too, didn't he, Larry King, as the voice?
O'NEIL: He really did. But has he ever looked lovelier?
COSTELLO: You know, it kind of looks like Larry King in a strange, awful way.
O'NEIL: Spooky.
COSTELLO: OK, we have to move on before Larry gets mad. "Day After Tomorrow."
O'NEIL: Well, we haven't seen this yet. Fox is not letting critics in until Monday. But it looks great.
This is from the producers and writers of "Independence Day," the Wolf Smith (ph) movie. And this takes all of the nightmares of global warming and heaps them one on the other after the other. It opens a week from Friday.
It's George Bush's worst nightmare, because the one thing the Bush administration is vulnerable on is global warming. You know, we pulled out of the Kyoto Accords. He's cut spending on global warming and weather studies 2 percent.
And what's really alarming about this movie, expect, you know, the news channels to be buzzing about this topic for the next two weeks, because it's so important. Six months ago, the Pentagon issued a report on global warming that says, believe it or not, the Ice Age could start in 16 years, by the year 2020.
And the one disaster that's not in this movie and was in the Pentagon report is that World War III could break out over food supplies.
COSTELLO: Oh, geez! Is Al Gore...
O'NEIL: I know. This is a political firecracker.
COSTELLO: Yes. Is Al Gore going to open the movie in theaters nationwide, a little blurb by him? I'm just kidding.
O'NEIL: I bet you Al is the first one to be standing in line next week to see it.
COSTELLO: I bet. Let's talk about another controversial movie, "Fahrenheit 9/11."
O'NEIL: Yes, this is the buzz at the Cannes Film Festival right now. It got a 20-minute standing ovation when Michael Moore opened it. And, of course, this is his Bush-bashing documentary about the Bush ties to the shaky Mideast terrorist thing, and it's also the whole 9/11 study.
But what's happening is it's tearing up the Cannes Film Festival right now. John Luke Gidard (ph), one of the great French directors, is bashing Moore now for saying, hey, you're only helping George Bush out by helping him look as a sympathetic figure.
And poor Tom Hanks. Hanks had never been to the Cannes Film Festival before. He's over there trying to show the movie, "Ladykillers." And even the audience was hitting on him, saying, what do you think? What do you think of this "Fahrenheit" thing? And Tom just said, look, we live in very confusing times. Let's pray for the soldiers and let's show my movie.
COSTELLO: Well, that was very sensitive of Tom.
O'NEIL: It was. It was. He handled it brilliantly actually.
COSTELLO: Oh, sure, yes. So, will we get to see "Fahrenheit 9/11?" Will it be distributed by anyone? Do we know that yet?
O'NEIL: Well, this is a really good question, Carol, because we don't know yet. And what's happening behind the scenes at Cannes is they're trying to piece together an oddball distribution plan to get this thing out by July/August when the Republican Convention will be held.
Michael Moore wants this movie to play a role in the downfall of George Bush, but no one distributor can do that. So, they're trying to find out who can open it in this market on this date and who can open it then. Then he wants the DVD out before November, so that it can have a double effect.
So, this -- talk about firecrackers. This is -- it's not George Bush's best time at the movie houses these days.
COSTELLO: All right, Tom O'Neil reporting live for us from new. Thanks so much.
O'NEIL: Thanks, Carol.
COSTELLO: All right, let's talk about something really, really good.
ROB MARCIANO, CNN METEOROLOGIST: Yes, I don't want to talk about Michael Moore. I think we gave him way too much time right there anyway.
COSTELLO: Well, he's jumping right back into the fire, isn't he?
MARCIANO: I don't know. Of course, they're going to give him a standing ovation when you get all of those Hollywood types in one spot.
COSTELLO: Would you give away the mug?
MARCIANO: Oh, sorry. The mug is -- there it is. Today's question...
COSTELLO: Actually, this is the winner of the DAYBREAK coffee quiz from Thursday.
MARCIANO: Oh, give the winner. You give the winner, and I'll give tomorrow's questions.
COSTELLO: OK. These are the questions we asked you on Thursday. Which Major League Baseball team could move to Washington or northern Virginia? That was the Montreal Expos. And we also asked you, what famous author's papers were sold at auction? That was author Coden Doyle (ph).
The winner, Andy Chatman from Pittsford, New York. Congratulations, Andy. Your mug is in the mail.
MARCIANO: OK, here's your chance to win a DAYBREAK coffee mug. Today's question is: The house voted -- the U.S. House voted to preserve the child tax credit. How much was that tax reduction? And Julia Vallese reported three tips in the Powerful Savings program that can help you cut the fuel cost. Name two of them.
And then we'll announce the winner on Monday.
COSTELLO: Daybreak@CNN.com. Daybreak@CNN.com. We're going to take a short break. We'll come back with more.
(COMMERCIAL BREAK)
COSTELLO: We're still talking about movies, but it is time...
MARCIANO: It's politics.
COSTELLO: I know. Let's start with "The Lightning Round." We don't have the sound effects for you. We're sorry.
MARCIANO: (UNINTELLIGIBLE).
COSTELLO: We're sorry. It's a slick tradition. Plebes at the Naval Academy in Annapolis made their annual climb up the Herndon Monument on Thursday. The winner is a first midshipman, who reaches the top and removes an officer's hat. That's what they get for climbing up that thing. It's difficult to do, because it's smooth anyway.
MARCIANO: And they've had a tough year, that's for sure as well. They're happy about it being over.
COSTELLO: Yes, happy about finally graduating, I'll bet.
Check out this tale of lost and found. Nearly four years ago, her husband lost his wedding ring while water skiing in Prospect Lake. Well, the lake was recently drained. So, the woman asked a treasure seeker with a metal detector to look for it after the water was all gone. And sure enough, can you believe it? He found it.
MARCIANO: Oh, I love those stories.
COSTELLO: Yes. Her husband passed away, though, but what a nice happy find for her.
MARCIANO: Yes, it is.
COSTELLO: That's cool.
From the CNN global headquarters in Atlanta, I'm Carol Costello, along with Rob Marciano. "AMERICAN MORNING" starts right now.
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 21, 2004 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: More details of abuse this morning from inside Abu Ghraib. On the front page of "The Washington Post," new worse pictures.
This picture appears to show a U.S. soldier with a baton, apparently ordering a naked and dirty detainee to walk a line with his ankles handcuffed.
In other picture, a U.S. soldier uses both hands to apparently restrain a dog, which is facing the detainee. The detainee appears to be handcuffed as well.
The "Post" also describes sworn statements by detainees, saying they were ridden like animals, sexually fondled by female soldiers, and forced to retrieve their food from toilets.
Hundreds more prisoners are being released from Abu Ghraib today. These are new pictures that we got out of Baghdad. Several buses left the facility used by Saddam Hussein to detain political opponents. Close to 500 prisoners are being released. About 300 were released last week.
And there is word from Afghanistan this morning of a top-to- bottom review. The U.S. commander there has ordered an investigation into detention facilities. It comes after allegations of physical and sexual abuse.
Let's head live to Kabul and Ryan Chilcote to tell us more.
Hello -- Ryan.
RYAN CHILCOTE, CNN CORRESPONDENT: Good morning, Carol.
Well, there are really a large number of investigations here in Afghanistan, U.S. investigations into prisoner abuse.
First of all, there is that review you were just mentioning ordered by the top commander here, General David Barno. He has ordered a review of all detention facilities here in this country. The report -- the assessment is due out in mid-June.
Now, in addition to that, there are several investigations into some specific incidents of alleged prisoner abuse here in Afghanistan, one that has been launched by the CIA. The CIA is looking at the circumstances of the death of one detainee at a detention facility in northeastern Afghanistan in 2003. The detainee there dying after being interrogated by a private contractor that was working for the U.S. government.
The U.S. Army is looking into the circumstances of two deaths of detainees at the Bagram airfield. This was just north here, north of the capital.
Now, these detainees passed away in December of 2002 while they were in the custody of U.S. soldiers. The U.S. Army is also looking at some recent allegations of abuse, including one that comes from an Afghan policeman, who says he was sexually abused by U.S. soldiers -- Carol.
COSTELLO: Ryan, a question for you. Is there any connection between the investigation into prisons within Afghanistan and the investigations going on right now in Iraq?
CHILCOTE: Well the U.S. military spokesman here acknowledges that all of the attention to the situation in Iraq has increased the focus on the allegations of prison abuse here. But the military here says that they take the issue of how they treat their detainees very seriously and review it constantly anyway. So, this review is not specifically linked to what we're seeing in Iraq.
Nonetheless, the question, of course, really is: Is there a common pattern common to both Iraq and Afghanistan, a pattern of abuse in both countries? The U.S. military does not think so. In fact, General Abizaid, who is responsible for both wars, says that he asked the U.S. Army inspector general that question and was told no, there isn't.
The other question, and this is the important one, is: Did these practices, some practices of mistreatment of detainees migrate from Afghanistan to Iraq? And what we're seeing right now is that at least one military intelligence unit that was interrogating prisoners here was then in Iraq in that Abu Ghraib prison in the detention facility. So, there's a lot of focus on whether they brought their practices from here to there -- Carol.
COSTELLO: Ryan Chilcote reporting live from Kabul, Afghanistan, this morning.
The Iraqi Governing Council member, Ahmed Chalabi, has a really messy office to clean up this morning. Exactly 24 hours ago, Iraqi police, accompanied by American troops, were raiding Chalabi's compound. Senior U.S. officials say an associate of Chalabi may be an Iranian intelligence agent. Chalabi says the raid shows the U.S.-led Coalition Provisional authority is failing, and there are many out there still scratching their heads about Ahmed Chalabi.
As I said, his compounded is raided in Iraq. He criticizes American policy there, but says he is America's best friend. Listen to what he said after that raid at his headquarters in Baghdad.
(BEGIN VIDEO CLIP)
AHMED CHALABI, IRAQI GOVERNING COUNCIL: I am America's best friend in Iraq. If the CPA finds it necessary to direct an armed attack against my home, you can see the state of relations between the CPA and the Iraqi people.
(END VIDEO CLIP)
COSTELLO: What's this thing about? Has he been playing a high- stakes power grab all along?
Let's head live to Washington and Patrick Bashon, a senior fellow in the Cato Institute Center for Representative Government.
Good morning.
PATRICK BASHAM, CATO INSTITUTE: Good morning.
COSTELLO: Chalabi has not been charged in this mess, but 16 of his associates have. Is he next?
BASHAM: He may well be, but it may not be necessary to charge him. Basically what's happening here is the United States is sending a message to the Iraqi people that he is no longer our guy. You don't view him as legitimate. We no longer view him as a legitimate future leader or future power player in Iraq. And so, he is not going to have a role as far as we're concerned in a newly-sovereign Iraq after June 30.
COSTELLO: These charges of giving intelligence to Iran are quite disturbing. Do you think that he himself had anything to do with that? Because he does have ties to Iranian Shiites, right?
BASHAM: Yes, he's had ties for some time going back to the shah of Iran. I would imagine that it's unlikely that he does, but some of his people are, you know, dubious to say the least. And that is possible. But the point here is that he has crossed swords with the American government on a variety of issues, including relations with Iran.
And it is just got to the breaking point as far as the State Department particularly, but also the Bush administration more generally is concerned. And we have cut our ties. He is no longer getting funding. And now, we're seeing that his people, and perhaps even he, will be prosecuted.
COSTELLO: But, Patrick, how did he get this far along? I mean, supposedly he feeds the United States this information of weapons of mass destruction before the war. And then he, like, insinuates himself into the Iraqi Governing Council. Is he, like, the best con man in the world? Or is he remotely sincere?
BASHAM: Well, maybe it's somewhere in between. I mean, basically, for a long time he was the best hope we had in the sense that he appeared to have decent intelligence. He was the guy most committed to getting rid of Saddam Hussein. And so, we gave him tens of millions of dollars over a number of years. He appeared to have Iraqis behind him. It turns out that his intelligence wasn't so good, and he didn't have anybody in Iraq behind him.
But he was useful to us, or we felt he was at the time. Now, we see that it's a pretty -- you know, it's a pretty empty situation as far as he and his organization are concerned. He can't do anything for us anymore really. So...
COSTELLO: Well, Patrick, to sum it up, what will his ouster mean? And how has he harmed the burgeoning Iraqi government?
BASHAM: Well, I don't think he has. Actually, his ouster will help, because he's not popular in Iraq. Iraqis didn't want him on the Governing Council. They don't want him to play a role in the future of Iraq. And so, this is actually a net plus for the Bush administration.
COSTELLO: Patrick Basham joining us live from Washington, D.C. from the Cato Institute. Thank you very much.
BASHAM: My pleasure.
COSTELLO: You can hear what Ahmed Chalabi has to say about this when he talks with Paula Zahn. You can see that 8:00 Eastern tonight.
The terror alert remains at yellow this morning, but there is cause for concern. The FBI is now on alert for suicide bombers within the United States. It's alerted local police, and wants you to report any suspicious activity. And I know what you're thinking. No, the threats are not any more specific than that.
In New York, transit officials want to ban photography on subways and buses. They say a ban could help prevent surveillance by terrorists on the nation's largest mass transit system. That would mean no more picture-taking aboard a train.
And the Department of Homeland Security is telling passenger railways to do more for security. For example, ask passengers and employees to report unattended property or suspicious behavior, or, in some places, remove trash cans that would be used to hide bombs.
Coming up on DAYBREAK, what's hot at a theater near you this weekend? Hollywood serves up ogres, disasters and a little bit of controversy. We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Time for a little business buzz. Here it comes. Workers at SBC have begun their strike, and that will impact homes in 13 states. But will it directly affect you, you know, as in your phone?
Carrie Lee has more on that live from the Nasdaq Marketsite.
So, will it affect phone lines at home?
CARRIE LEE, CNN FINANCIAL NEWS: Well, Carol, SBC for its part says so far things have gone pretty smoothly. They haven't reported any problems. But as you said, SBC does operate in 13 states. We're talking about nearly 100,000 unionized employees at the local phone giant striking. They are protesting the company's latest contract offer. The big issues here: medical benefits and the level of outsourcing.
Here's a shot yesterday of protestors in Connecticut. Basically when some local phone companies have gone on strike in the past, it hasn't affected basic calling, but it has slowed responses to service requests for new installations or repairs.
If you are an SBC customer, if you're experiencing any phone problems, you should probably call the company, but it could take a little longer than normal to get things worked out.
In the meantime, as this strike goes on -- and by the way, it's set to end at 12:01 a.m. on Tuesday -- they're having some managers and retirees maintain operations. So, so far no issues, at least from SBC's standpoint, but we'll keep you posted if things change.
Turning to stocks, we saw a pretty flat session yesterday. Futures this morning are looking very strong. One stock to watch: Nordstrom, the upscale retailer, reporting profits that beat the Wall Street expectation in the last quarter. Same-store sales a key gauge for retailers also outpacing the consensus.
So, Nordstrom was a nice gainer last night. We'll see what it does today.
Carol -- back to you.
COSTELLO: All right, Carrie Lee live from the Nasdaq Marketsite.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
A bus ride and 25 bucks in cash -- that's what almost 500 Iraqi prisoners are getting today. The U.S. military is dropping them off near their homes as it cuts the number of inmates at Abu Ghraib prison.
Israel is redeploying its troops in Gaza, which is pulling out of the Rafah refugee camp. On Tuesday, Israel launched a major operation to destroy tunnels used to smuggle weapons. Forty Palestinians have been killed in the clashes.
In money news, oh, the pain for a little shady gain. Richard Strong, the founder and former CEO of Strong Financial, has agreed to pay a $60 million fine. He was accused of making nearly $2 million from improper mutual fund trading.
In sports, Eric Musselman is out as coach of the Golden State Warriors. A Pac-10 source says Stanford basketball Coach Mike Montgomery will be the Warriors' new coach.
In culture, Alicia Keys has sold a lot of R&B hip-hop records. But can she make "The New York Times" best-seller list? We'll know come November. That's when the first of two books she signed a deal to write is due at bookstores. But if the (UNINTELLIGIBLE) of her song, "If I Ain't Got You," is any indicator, don't expect a literary masterpiece.
(WEATHER BREAK)
COSTELLO: Those are the latest headlines for you this morning.
Now let's head live to New York to check in with Bill and Soledad.
And you guys are going to have more on this new terror alert about suicide bombers in this country.
BILL HEMMER, CNN ANCHOR: Yes, we certainly are, Carol. A lot of interesting details, too. The FBI putting out to its agents, 18,000 strong across the country, being on alert for suicide bombers. We'll let you know what's in that bulletin, what they need to look out for, and whether or not any of this even helps ultimately in the end. We'll get to it.
SOLEDAD O'BRIEN, CNN ANCHOR: Also this morning, Carol, of course, we're following this prisoner abuse scandal. There are some new photos in "The Washington Post" this morning. We're going to share some of those with you. Also, we'll talk to Barbara Starr from the Pentagon.
And the question this morning, it comes from a professor who did a study 33 years ago. He claims that is a capacity for great cruelty in all of us. We'll explain about that experiment. It's fascinating.
HEMMER: Also, remember Courtney from yesterday, 3 and a half years old, lost in Baltimore? Apparently, Courtney may not be her real name, and it may be that the mother has come forward. We'll talk to two attorneys today. They'll talk about why it took two weeks for the woman to come forward. They're going to be in court today, Carol, trying to figure out who gets the right to this girl and who really is her mom and her dad. So, we'll have it all for you.
O'BRIEN: Confusing story there.
HEMMER: Interesting twist, though.
O'BRIEN: Yes.
HEMMER: You know, we kind of knew yesterday it was going to come down this way.
O'BRIEN: Yes, there was something going on.
HEMMER: Yes. Hey, happy Friday to you, Carol.
COSTELLO: It's got ugly domestic situation all over it.
HEMMER: Yes.
COSTELLO: Did you say happy Friday?
HEMMER: Yes, I said happy Friday. COSTELLO: I've been waiting for Friday since Monday, Bill.
HEMMER: Isn't that the truth?
O'BRIEN: Can I tell you? Me too.
COSTELLO: We'll see you guys in 10 minutes.
HEMMER: Have a great weekend.
COSTELLO: Thank you.
HEMMER: Bye-bye.
COSTELLO: Coming up, it's the season of the blockbuster, and audiences won't be disappointed if they're looking for a big Hollywood production. We'll give you a sneak peak.
And see why these young people keep working their way up and up and up. We'll be back.
(COMMERCIAL BREAK)
COSTELLO: I know what you're going to do this weekend, especially if you have kids. You'll be visiting a green ogre and irritating donkey and a very suave kitty cat.
Our movie critic, Tom O'Neil, joins us from New York. He's from "In Touch Weekly."
Good morning.
TOM O'NEIL, "IN TOUCH WEEKLY: Good morning, Carol.
COSTELLO: So, let's start with "Shrek 2," shall we?
O'NEIL: Absolutely. It's so wonderful to have good news for moviegoers that a sequel is almost as good as the original.
COSTELLO: Oh, that's so nice to hear.
O'NEIL: It really is. This picks up where the original left off, where the jolly green ogre marries the princess, but mom and dad don't like the ogre much. This isn't going to be happily ever after, because they send Puss N' Boots after him, and Puss N' Boots steals this movie. It's played by Antonio Banderas. But check out...
COSTELLO: Oh, you didn't say his name right. It's Antonio Banderas!
O'NEIL: But check out the evil ugly stepsister, though, Carol. You probably know this because you're a CNN gal.
COSTELLO: I do.
O'NEIL: You tell the viewers who is behind that ugly (UNINTELLIGIBLE)?
COSTELLO: Larry King is the voice of the ugly stepsister, and she has a 5:00 shadow and the whole bit.
O'NEIL: Has he ever looked lovelier?
COSTELLO: He got really great reviews, too, didn't he, Larry King, as the voice?
O'NEIL: He really did. But has he ever looked lovelier?
COSTELLO: You know, it kind of looks like Larry King in a strange, awful way.
O'NEIL: Spooky.
COSTELLO: OK, we have to move on before Larry gets mad. "Day After Tomorrow."
O'NEIL: Well, we haven't seen this yet. Fox is not letting critics in until Monday. But it looks great.
This is from the producers and writers of "Independence Day," the Wolf Smith (ph) movie. And this takes all of the nightmares of global warming and heaps them one on the other after the other. It opens a week from Friday.
It's George Bush's worst nightmare, because the one thing the Bush administration is vulnerable on is global warming. You know, we pulled out of the Kyoto Accords. He's cut spending on global warming and weather studies 2 percent.
And what's really alarming about this movie, expect, you know, the news channels to be buzzing about this topic for the next two weeks, because it's so important. Six months ago, the Pentagon issued a report on global warming that says, believe it or not, the Ice Age could start in 16 years, by the year 2020.
And the one disaster that's not in this movie and was in the Pentagon report is that World War III could break out over food supplies.
COSTELLO: Oh, geez! Is Al Gore...
O'NEIL: I know. This is a political firecracker.
COSTELLO: Yes. Is Al Gore going to open the movie in theaters nationwide, a little blurb by him? I'm just kidding.
O'NEIL: I bet you Al is the first one to be standing in line next week to see it.
COSTELLO: I bet. Let's talk about another controversial movie, "Fahrenheit 9/11."
O'NEIL: Yes, this is the buzz at the Cannes Film Festival right now. It got a 20-minute standing ovation when Michael Moore opened it. And, of course, this is his Bush-bashing documentary about the Bush ties to the shaky Mideast terrorist thing, and it's also the whole 9/11 study.
But what's happening is it's tearing up the Cannes Film Festival right now. John Luke Gidard (ph), one of the great French directors, is bashing Moore now for saying, hey, you're only helping George Bush out by helping him look as a sympathetic figure.
And poor Tom Hanks. Hanks had never been to the Cannes Film Festival before. He's over there trying to show the movie, "Ladykillers." And even the audience was hitting on him, saying, what do you think? What do you think of this "Fahrenheit" thing? And Tom just said, look, we live in very confusing times. Let's pray for the soldiers and let's show my movie.
COSTELLO: Well, that was very sensitive of Tom.
O'NEIL: It was. It was. He handled it brilliantly actually.
COSTELLO: Oh, sure, yes. So, will we get to see "Fahrenheit 9/11?" Will it be distributed by anyone? Do we know that yet?
O'NEIL: Well, this is a really good question, Carol, because we don't know yet. And what's happening behind the scenes at Cannes is they're trying to piece together an oddball distribution plan to get this thing out by July/August when the Republican Convention will be held.
Michael Moore wants this movie to play a role in the downfall of George Bush, but no one distributor can do that. So, they're trying to find out who can open it in this market on this date and who can open it then. Then he wants the DVD out before November, so that it can have a double effect.
So, this -- talk about firecrackers. This is -- it's not George Bush's best time at the movie houses these days.
COSTELLO: All right, Tom O'Neil reporting live for us from new. Thanks so much.
O'NEIL: Thanks, Carol.
COSTELLO: All right, let's talk about something really, really good.
ROB MARCIANO, CNN METEOROLOGIST: Yes, I don't want to talk about Michael Moore. I think we gave him way too much time right there anyway.
COSTELLO: Well, he's jumping right back into the fire, isn't he?
MARCIANO: I don't know. Of course, they're going to give him a standing ovation when you get all of those Hollywood types in one spot.
COSTELLO: Would you give away the mug?
MARCIANO: Oh, sorry. The mug is -- there it is. Today's question...
COSTELLO: Actually, this is the winner of the DAYBREAK coffee quiz from Thursday.
MARCIANO: Oh, give the winner. You give the winner, and I'll give tomorrow's questions.
COSTELLO: OK. These are the questions we asked you on Thursday. Which Major League Baseball team could move to Washington or northern Virginia? That was the Montreal Expos. And we also asked you, what famous author's papers were sold at auction? That was author Coden Doyle (ph).
The winner, Andy Chatman from Pittsford, New York. Congratulations, Andy. Your mug is in the mail.
MARCIANO: OK, here's your chance to win a DAYBREAK coffee mug. Today's question is: The house voted -- the U.S. House voted to preserve the child tax credit. How much was that tax reduction? And Julia Vallese reported three tips in the Powerful Savings program that can help you cut the fuel cost. Name two of them.
And then we'll announce the winner on Monday.
COSTELLO: Daybreak@CNN.com. Daybreak@CNN.com. We're going to take a short break. We'll come back with more.
(COMMERCIAL BREAK)
COSTELLO: We're still talking about movies, but it is time...
MARCIANO: It's politics.
COSTELLO: I know. Let's start with "The Lightning Round." We don't have the sound effects for you. We're sorry.
MARCIANO: (UNINTELLIGIBLE).
COSTELLO: We're sorry. It's a slick tradition. Plebes at the Naval Academy in Annapolis made their annual climb up the Herndon Monument on Thursday. The winner is a first midshipman, who reaches the top and removes an officer's hat. That's what they get for climbing up that thing. It's difficult to do, because it's smooth anyway.
MARCIANO: And they've had a tough year, that's for sure as well. They're happy about it being over.
COSTELLO: Yes, happy about finally graduating, I'll bet.
Check out this tale of lost and found. Nearly four years ago, her husband lost his wedding ring while water skiing in Prospect Lake. Well, the lake was recently drained. So, the woman asked a treasure seeker with a metal detector to look for it after the water was all gone. And sure enough, can you believe it? He found it.
MARCIANO: Oh, I love those stories.
COSTELLO: Yes. Her husband passed away, though, but what a nice happy find for her.
MARCIANO: Yes, it is.
COSTELLO: That's cool.
From the CNN global headquarters in Atlanta, I'm Carol Costello, along with Rob Marciano. "AMERICAN MORNING" starts right now.
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