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American Morning

Countdown to Handover: President Bush's Speech; Witness Perjury Charge in Martha Stewart Case; '90-Second Pop'

Aired May 24, 2004 - 9:00   ET

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


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


SOLEDAD O'BRIEN, CNN ANCHOR: The President explains to the American people what comes next for Iraq on a day when more explosions rock Baghdad.
Does this videotape prove the U.S. military was wrong about a raid in western Iraq that killed dozens of people?

And spring storms churning across the country, dropping tornadoes from the sky. Where are the dangers now on this AMERICAN MORNING?

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Soledad O'Brien and Bill Hemmer.

BILL HEMMER, CNN ANCHOR: Nine o'clock here in New York. Good morning, everybody. Welcome to AMERICAN MORNING. Other headlines this hour...

The President expected later tonight to lay out how the Iraqi transfer of sovereignty will work. He'll speak to the country in prime time. How much is at stake for the White House politically? We'll talk to Ron Brownstein about that topic this hour in a moment here.

O'BRIEN: Also ahead this morning, The Associated Press has obtained home video apparently of a wedding. Now, locals say it proves that innocent people were killed in a U.S. attack last week in western Iraq. We're going to get an update on that and other developments from Iraq when Harris Whitbeck joins us from Baghdad in just a few moments.

HEMMER: Also this morning, if you were paying attention last Friday, Friday afternoon, new charges stemming from the government's case against Martha Stewart. This time against a witness from her trial that worked for the prosecution. Some are suggesting it could be a tremendous break for Stewart, others are saying, no, not so fast. Bottom line, Jeff Toobin knows it. In a moment, we'll get to Jeff here.

O'BRIEN: That's ahead. But first, Jack Cafferty.

Hello.

JACK CAFFERTY, CNN ANCHOR: Good morning.

What is the one thing you'd like to hear come out of President Bush's mouth when he makes that speech to the nation tonight? There are many issues swirling around this administration in the third year of its first term. What's the one thing you'd like to hear? AM@CNN.com, and we'll read some of the responses later. And some of them are really good.

HEMMER: Wow. Good deal.

O'BRIEN: That's a good tease. All right, Jack, thanks.

About 11 hours from now, President Bush will be at the Army War College in Pennsylvania, where he will begin a series of speeches about the future of Iraq. Earlier here on AMERICAN MORNING, one of the president's top communication aides said that he will concentrate on the Iraqi interim government that will take over partial power at the end of June.

(BEGIN VIDEO CLIP)

SUZY DEFRANCIS, DEPUTY ASSISTANT TO THE PRESIDENT FOR COMMUNICATIONS: He'll specifically talk about how we achieve our goal of a securing and self-governing Iraq that will no longer threaten America or the rest of the world. And he's going to lay out some very steps to get to that goal.

(END VIDEO CLIP)

O'BRIEN: We are told that the President will also address the international community's role in Iraq and how to improve Iraq's infrastructure.

Joining us this morning from Washington, D.C., is CNN political analyst and LA Times political correspondent, Ron Brownstein.

Nice to see you, Ron, as always.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning, Soledad.

O'BRIEN: Let's get right to it. Obviously, this evening is going to be a friendly audience. What do you think the President has to say in this speech?

BROWNSTEIN: Well, I think the overriding need he has is to convince the American public that he has a plan to make this move toward success. When you look at all that's going on in Iraq, whether it's the prison scandal, the casualties, the violence, the real risk at the core of all of that to the President is the erosion of confidence that we are going to succeed in our mission there. And that, I think, is what he has to try to turn around.

There is only so much you can do in a speech, however. In the end, events on the ground will last day after day, while the speech will come and go.

O'BRIEN: Well, in fact, I was going to ask you that. How much can actually be accomplished with the speech? Because when you talk about erosion, specifically the question was the public support for U.S. military policy in Iraq has dropped 18 points since December. How far can you go with the speech?

BROWNSTEIN: Necessary, but not sufficient, as the saying goes. It's important for the President to show the public that he has a clear sense of where he wants to go. In the long run, it's more important that that roadmap that he lays out actually move us in that direction.

Soledad, we saw a rallying around the President in the polls in April after his press conference, where he emphasized resolve to make Iraq work. But the news day after day, first the high levels of casualties in April, then the prison scandal in May, has driven him down to the point where you mentioned he is now, with a very low approval rating on Iraq, that has dragged his overall approval rating down below 50 percent and put him behind John Kerry in most polls.

O'BRIEN: David Gergen earlier this morning said that the fact that the networks have declined to carry this speech means that there is going to be no big breaking news that the President is going to make. Do you think he needs to do some kind of big bombshell, for lack of a better word, where he really moves the ball forward? And do you think the networks have it right that they don't expect that because it hasn't been leaked so far?

BROWNSTEIN: Well, what they're saying -- in fact, the White House is saying that there will not a groundbreaking policy shift. This speech is more designed to reassert why we were there, give people a better sense of what the next steps are that the President envisions on the road to the June 30 handoff, and also to give people kind of a sober assessment that this is not going to be easy. As if really they need to be reminded of that.

So in that sense, the networks can make that judgment. Right now, the President does not feel the need, or even perhaps feel that he has the option to change course. Whether -- again, whether that posture is sustainable will depend more on events than on the words that he offers tonight.

O'BRIEN: Well, there's another book out there. Retired General Anthony Zinni has written a book, and here is what he says -- a little bit of it.

"In the lead-up to the war in Iraq and later conduct, I saw at a minimum true dereliction, negligence, irresponsibility. At worst, lying, incompetence, corruption. If there is a center that could hold this mess together, I don't know what it is. Civil war could break out at any time."

"Resources are needed. A strategy is needed. A plan is needed."

That is an incredibly harsh critique of the administration's plans or lack thereof going into Iraq. Do you think this just adds to yet another book or movie critical of the President, or do you think it really could have an impact?

BROWNSTEIN: Well, I think it reinforces what is already going on. I mean, what you're seeing -- first of all, General Zinni has been one of the most persistent and eloquent critics of the former Mideast envoy of the administration. But it really tracks with what we're seeing in Washington, which is sort of this growing concern even among Republicans in the Senate, who have been very reluctant to exercise an oversight role but have become more aggressive in the last few weeks.

Senator Lugar, chair of the Foreign Relations Committee, Senator Warner, chair of the Armed Services Committee, tougher questions are being asked. And in the end, I think it is in the administration's interest to have these questions asked because they are going to be judged by results. And they need to have this plan, sort of their direction questioned, challenged, ad hopefully for the country and the President. Produce something that has a better chance of success than the road we seem to be on right now.

O'BRIEN: CNN political analyst Ron Brownstein joining us this morning. Ron, as always, thanks.

And CNN will have live coverage of the president's address tonight in a special edition of "PAULA ZAHN NOW" at 8:00 p.m. Eastern Time.

Bill?

HEMMER: Six minutes past the hour. A strong, blunt denial from the U.S. military this weekend. A report in The Washington Post saying that the Army's top commander in Iraq witnessed or knew about the abuse of Iraqi prisoners. That report says Lieutenant General Ricardo Sanchez was present during inmate interrogations of the Abu Ghraib prison west of Baghdad. It came from the attorney for Sergeant Ivan Chip Frederick, one of the soldiers charged in that scandal.

In the statement, Brigadier General Mark Kimmitt says -- I'm quoting now -- "This report is false, and Lieutenant General Sanchez stands by his testimony before congressional committees." Retired Army Major General Michael Nardotti, a former Army judge, advocate general, our guest to talk about this.

And welcome here to AMERICAN MORNING.

MAJ. GEN. MICHAEL NARDOTTI (RET.), FMR. ARMY JAG: Thank you very much, Bill.

HEMMER: What is your take on this?

NARDOTTI: Well, I think we have to be careful to view this in the proper context. The information that came out in that report yesterday is about two months old. It was at a hearing on April 2nd. And also, the defense counsel was making a representation. Captain Shook (ph), the defense counsel, was making a representation as to what he believed the company commander, Captain Reese (ph), would say if he were able to talk about this.

He would say that he believed that General Sanchez witnessed some of the activities that are now the suB.J.ect of the courts-martial. However, as was also noted in that report, Captain Reese (ph) was questioned during the interview -- during the investigation of General Taguba. And he did not indicate any involvement or any knowledge by General Sanchez. So there are some issues there that...

HEMMER: Let me clarify this. You're saying the dates are critical and important. Why is that then?

NARDOTTI: Well, that's because this was a hearing in the first part of April. We're about 60 days down the road. The defense counsel made that representation, and certain things should have followed from that. We don't know what they are, we don't know whether or not the defense counsel had an opportunity to pursue other avenues to try to corroborate what Captain Reese (ph) had said.

For instance, the schedules of general officers in virtually anywhere that you go would be fairly easy to track in terms of a matter of record. And I think they could certainly go back and determine whether or not General Sanchez had visited the prison.

HEMMER: So you watch the timeline, you see how your defense adds up. But if you're going to defend yourself in case like this, doesn't it help you immensely if you can prove that a senior above knew about your involvement and that that would exonerate you effectively? True or not?

NARDOTTI: It depends on what the facts are, the specific facts with respect to the misconduct charge against staff Sergeant Frederick. Certainly, the -- in the first instance, first of all, if there was some command support or encouragement of this, that might mitigate the circumstance. But it would not excuse it.

In that instance, if higher-ups in the chain of command solicited that or encouraged it, they would be as culpable as those committing the unlawful acts. But, in particular, look at the acts that the soldiers are charged with, and you have to make a judgment as to whether or not they legitimately fall within the bounds of the intensified interrogation techniques that were being encouraged, or did they go beyond that to the type of abuse and retaliation for which there would no justification.

HEMMER: Others are suggesting you need to bring everybody at that prison back to this center location, because a lot of them dispersed about Iraq. Probably some of them come home as well. To get this case going, you're going to have to have the testimony from each and every person that was there.

Thank you. Good to talk to you. Major General Michael Nardotti there in D.C. Thanks -- pleasure,

NARDOTTI: You're welcome, Bill.

HEMMER: Soledad?

(WEATHER REPORT)

O'BRIEN: Well, prosecutors are afraid that Michael Jackson could jump bail and flee the country. The district attorney is opposed to reducing Jackson's $3 million bond. Jackson is charged with child molestation. A motion by the prosecution says that $3 million is a lot of money to leave behind, even for him.

A witness who testified in the Martha Stewart trial has been now charged with perjury. What does that mean for Stewart's conviction? CNN senior legal analyst Jeff Toobin back to talk about this one.

This is kind of an unusual case. We're talking about the guy who was the ink expert.

JEFFREY TOOBIN, CNN LEGAL ANALYST: The national expert for ink, as he described himself.

O'BRIEN: And apparently he, at the very least, exaggerated his role. He's now been charged with two counts of perjury. People think he lied on the stand in that testimony, in the Martha Stewart case specifically.

But the U.S. attorney, David Kelly, says he thinks it's going to have, "no impact on the convictions of Stewart and Bacanovic." That seems surprising to me.

TOOBIN: Well, it's a very unusual situation. I've never heard of a government witness being charged with perjury even before the defendants in a case are being sentenced.

The issue is, did the testimony contribute in a material way to their convictions? The government argues, no, it didn't, because the specific document that was at issue in this fellow's testimony, that document was -- Bacanovic was charged with falsifying it. He was acquitted of that charge. So the government says, look, it doesn't relate to Stewart, Bacanovic was acquitted of the charge. So his testimony was essentially irrelevant to the core conduct.

O'BRIEN: So now Bacanovic's lawyers want to get a new trial. I think they've actually already gone ahead and asked for a new trial. If he was acquitted on the charges that this witness was being -- you know, testifying about, what are their likelihood? What's the chance that they're going to get a new trial based on this?

TOOBIN: Well, it's interesting to follow the stock market. As soon as the news broke that someone was being charged with perjury in connection with this case, Martha Stewart's stock went up 23 percent, shot up. People think, oh, she's going to get a new trial, the company's going to be OK.

As the news started percolating through, the stock only went up nine percent. I think it's going to be tougher than many of us originally thought for them to get a new trial because the information was not directly relevant to the core counts against him. However, the defendants will argue it was relevant to the conspiracy count, it was relevant to the overall counts against them, so maybe that's enough to get them a new trial.

O'BRIEN: Very briefly, because we're out of time, you saw this guy on the stand. How was he? TOOBIN: He was weird. He was a very strange guy.

O'BRIEN: Egomaniac?

TOOBIN: He was full of ego. And what he's accused of lying about is he says he performed the actual tests on the document. The government says, no, he didn't do any tests, he just reviewed the work of other people. It's not the most surprising charge in the world for those of us who watched the testimony because he did seem so caught up in his ink expertise, which was a field that I certainly didn't know much about before this trial.

O'BRIEN: Well, now you know a lot more about it, right, Jeff?

TOOBIN: I sat there day after day listening to him.

O'BRIEN: Jeffrey Toobin, thanks, as always.

TOOBIN: OK.

O'BRIEN: And let's turn back to Heidi Collins and a look at some of the other stories that are making headlines this morning.

Heidi, good morning again.

HEIDI COLLINS, CNN ANCHOR: Good morning, Soledad. And good morning to you, everybody. Fifteen minutes past the hour now. I want to get you caught up on the headlines.

The U.S. will circulate a draft resolution on Iraq among U.N. Security Council members. A senior State Department official says U.S. and British officials will discuss the text with members of the 15-nation council today. U.S. officials say the new resolution will define a larger U.N. role in Iraq and lay out steps for Iraq's reconstruction.

Rail commuters may see some delays today as security on passenger train service across the country gets tighter. New federal mandates are now in effect on subway and rail systems. Bomb-sniffing dogs and random I.D. checks are part of the plan. The new security guidelines are said to be a response to the Madrid train attacks which killed nearly 200 people back in March.

Closing arguments getting under way this morning in the state murder trial of Oklahoma City bombing conspirator Terry Nichols. The judge is first expected to rule on several defense motions before the arguments start. Nichols is already serving a life term on a federal conviction and could face the death penalty if convicted in a state trial.

To Michigan now. Residents are trying to recover after three days of fierce storms there. Heavy rains pounded the southern part of the state, causing widespread flooding and submerging homes under water, like that one you see there. Over 20 counties remain under a flood warning this morning. Power was knocked out to tens of thousands of homes due to high winds. To the NBA playoffs. The Minnesota Timberwolves tear through game two 89-71, to even it up with the Los Angeles Lakers. The Timberwolves Derek Martin stepped off the bench for 15 points after Sam Cassell (ph) left the game with a back injury.

Lakers' star Kobe Bryant's 27 points wasn't enough to keep his team in the game. The Lakers heading now for home. Game three coming up tomorrow. So we'll see how they do on the home court.

HEMMER: That's a heck of a series.

COLLINS: A heck of a series.

HEMMER: And you're staying oB.J.ective on this, right? Because you grew up in Minnesota.

COLLINS: Being oB.J.ective as always -- Timberwolves!

O'BRIEN: She was talking about it this morning and made -- exactly, just like that.

HEMMER: Good to have you, Heidi.

COLLINS: Thank you.

HEMMER: All right. Back to Jack and the Question of the Day.

CAFFERTY: Big night tonight for President Bush. What is the most important thing you'd like him to say? What are you looking forward to hearing come out of the president's mouth as he talks about the war in Iraq and all of the difficulties?

Renee in Connecticut: "President Bush is doing a terrific job. And the reason you don't get a lot of these is because thoughtful Americans do not watch CNN for its partisanship coverage of world events."

Renee, you're watching, though. You know what I'm saying?

Peter in Houston, Texas: "This is it. After Abu Ghraib, I've almost given up on this war. This is Mr. Bush's last chance to convince me. We're on the verge of a clash of civilizations and everything depends tonight on Mr. Bush's ability to justify this war."

And Tom in New York writes: "I want to hear President Bush say we're going to stay the course. I'm disgusted by the impatience, short-sightedness and selfishness of this generation. The United States changes its mind every week based on the latest headlines. If this generation was living in the '40s, it wouldn't have the endurance to defeat Germany and Japan."

AM@CNN.com.

HEMMER: Thank you, Jack.

In a moment here, an explosion killing two near a coalition checkpoint. Live to Baghdad and what is happening there today in a moment.

O'BRIEN: Also, Ahmad Chalabi was once a U.S. favorite to lead a post-war Iraq. Well, now he's accused of spying. We're going to take a look at his fall from favor.

HEMMER: Also, later tonight in LA, Madonna is back on stage. She's 45 years old, she's a mother, and she can still shock you. "90- Second Pop" has a shot at that in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Madonna is back, and you can see her for the low, low price of $936! Honest! Face value for some of the tickets.

Welcome back, everybody, on a Monday. "90-Second Pop" comes your way. B.J. Sigesmund, staff editor for US Weekly -- nice to see you, B.J.. Good morning.

B.J. SIGESMUND, STAFF WRITER, US WEEKLY: Good to see you.

HEMMER: Sarah Bernard, contributing editor for New York Magazine. And a first-timer, humorist Paul Scheer.

Michael Moore wins at Cannes over the weekend. Shocked everybody. I think even him. Before we get into what happened in France, why is this film so controversial?

SIGESMUND: Basically, it takes aim at President Bush and his handling of the war in Iraq. And it connects the Bush family to several prominent Saudis.

HEMMER: Or so he alleges in this film?

SIGESMUND: Yes. Yes. And including the family of Osama himself.

But the reason this is controversial, you know Cannes gave this film a lot of legitimacy now. And overnight it is a huge thorn in President Bush's side. This is a two-hour screen against the president that now has a must-see feel to it, like we saw with "The Passion."

HEMMER: But you read the reviews last week. The critics panned this film. They said all the information was old. It was all in a book two years ago.

SIGESMUND: Yes, but that doesn't matter. Five to 10 million people are going to see it when they ultimately release it at the height of the election season. So its impact cannot be overestimated.

SARAH BERNARD, CONTRIBUTING EDITOR, NEW YORK MAGAZINE: I think what is more exciting is the drama between Harvey Weinstein and Michael Eisner. I mean the drama between the political side is important, but this is really going to be a problem for Michael Eisner because...

PAUL SCHEER, HUMORIST: Miramax is going to pull out from Disney now and actually be their own company now.

HEMMER: Last documentary to win at Cannes was what?

BERNARD: (UNINTELLIGIBLE), 1966.

HEMMER: Very good. Very good, you guys. You'll be back, by the way.

Madonna starts her tour tonight in Los Angeles. Boy, what does she have planned, huh?

SCHEER: Just when you think it was safe, Madonna is back. She used to be -- she's into the Kabbalah. She writes children's books. But now her new tour, Reinvention, has an electric chair, pregnant women that are nearly naked, and a lot of lesbian fantasy scenes.

BERNARD: It's typical Madonna, though, don't you think? I mean, it's really just her same stuff. But what's happened is she started the whole shocking everybody thing with her "Like a Virgin" tour, rolling around on the stage in her wedding dress. And now it's so hard for her to be shocking because everybody has caught up with her completely.

SIGESMUND: Although, Liz Rosenberg, Madonna's rep, told US Weekly that there aren't scantily clad pregnant women in the show. But she did say that behind the scenes, back stage, it's the mellowist vibe she's ever experience on a Madonna tour.

BERNARD: Oh, I don't know if I believe that.

SIGESMUND: She attributed it to Kabbalah.

HEMMER: Sarah, I think your point is exactly right. She always has to push it to continue to get headlines.

BERNARD: Absolutely.

HEMMER: And attention.

BERNARD: And now she's got Britney and Christina doing all the same things she used to do.

SCHEER: I'm actually scared for the next Britney tour, because now Britney has to one-up Madonna. At this point she's going to have to...

SIGESMUND: But there will not be a return of the Jean Paul Gautier cone bras. She is not reinventing those.

(CROSSTALK)

HEMMER: P. Diddy wants to talk to John Kerry and George Bush.

BERNARD: Isn't that amazing?

HEMMER: And his quote was, "I'm going to make Kerry and Bush squirm."

BERNARD: Yes, watch out.

HEMMER: What's he got planned?

BERNARD: Well, he's working on a political talk show. So he's going from Broadway to -- he's trying to beat Tim Russert now, I think, is actually what he's trying to do. He's got a show in the works called "Product Change," and he has figured out that people who get to ask the presidents questions are often screened. Can you believe it?

So what he wants to do is get real people from New York, from Detroit, to ask what they really want to know. And put the questions to them live on TV.

SIGESMUND: The amazing thing, though, is that reps for Bush and Kerry have both said that they're willing to do it. So I think it's just a matter of time.

BERNARD: But I think this is really going to be the first up into P. Diddy's political aspirations. I think he's looking for a way in.

(CROSSTALK)

SIGESMUND: Well, he seems to feel that is there nothing he can't do.

BERNARD: Yes. He's not afraid of failure or embarrassment.

HEMMER: He's a very busy man. "Raisin in the Sun" on Broadway. The ticket has record sales at that theater. He's got a perfume planned?

BERNARD: Yes.

(CROSSTALK)

HEMMER: Is it perfume or is it cologne?

BERNARD: I think it's perfume. He knows what to do.

SCHEER: Like two years ago he was allegedly in this incident with a gun in a club, and now he's like the McLaughlin Group. You know? This is amazing for this guy. Like he's turned around.

HEMMER: Well done, Paul. You'll be back.

See you later, OK? Sarah, B.J., great to see you on a Monday.

All right. Here's Soledad.

O'BRIEN: Bill, thanks.

Still to come this morning, President Bush will make a major speech on Iraq tonight. Much is expected. A look at that coming up.

And also, more than 80 tornadoes tore through the Midwest this weekend. Today's outlook for that not good. The damage and a forecast just ahead as AMERICAN MORNING continues right after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

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

There were more attacks on the coalition this morning at the entrance to Baghdad's so-called Green Zone. Two British civilians were killed. Harris Whitbeck is standing by for us this morning on the very latest of what happened there.

HEMMER: Also, back in this country, really tough news weather- wise. Those people in Nebraska hardest hit by the tornadoes, cleaning up again today. Massive twisters ripping over the weekend through there. At least 18, some say 19 touching down. Forecasters say another risk today. We'll look at the weather map in a few moments and let you know what we're seeing so far.

O'BRIEN: That twister just wiped out that town.

HEMMER: Unbelievable. That's right.

O'BRIEN: Completely gone it looks like.

Also this morning, what is happening to children who take drugs like Prozac and Paxil and Zoloft before they even get out of elementary school? Dr. Sanjay Gupta has the latest medical research on children and antidepressants.

HEMMER: In the meantime, though, here at the half-hour, back to Iraq. Several explosions heard across Baghdad earlier today. The most serious killed two British citizens near an entrance to the so- called Green Zone, where the U.S Coalition Authority has its offices. Straight to Baghdad and Harris Whitbeck for more on this.

Harris, what do you have?

HARRIS WHITBECK, CNN CORRESPONDENT: Hello, Bill. We've heard at least six smaller explosions since the one that killed two British civilians outside the Green Zone this morning. That incident occurred when the SUV that they were traveling in, an SUV that was armored, apparently hit an improvised explosive device. The British foreign office confirming that two British civilians were killed and one more was wounded. The explosion occurred not too far from a checkpoint near the (UNINTELLIGIBLE) gate entrance to the Green Zone, which, as you know, houses the headquarters for the U.S.-led coalition here in Iraq.

Meanwhile, last week's U.S. air strike against a group of people in the desert near the border with Syria continues to spark more questions this morning. Television news agency APTN distributed a video it obtained that shows the people attacked last Wednesday by U.S. aircraft were celebrating a traditional tribal wedding. And one of the images you can see a wedding musician who was buried the next day in Baghdad. And APTN also had pictures of that burial ceremony, proving that it was the same man.

Now, neither APTN or CNN have been able to confirm the authenticity of these videos. The U.S. military spokesman in Baghdad continued to insist the attack was on a group of foreign fighters use a safe house near the Syrian border. And they said, "Bad people can have parties, too." They also showed pictures of medical and military equipment that they say proves their version of those events -- Bill.

HEMMER: Harris Whitbeck, following all the action yet again today in Iraq. Another busy day out of Baghdad.

Meanwhile, Ahmad Chalabi has fallen an awful long way in a short period of time. As the war started, more than a year ago, he had been working closely with the White House and the Pentagon. Now, he is accused of spying and doing it for Iran, a charge Chalabi says was invented by the CIA director, George Tenet. He was talking yesterday.

Mark Hosenball has a feature story on Chalabi in Newsweek Magazine. He's here to talk about it live in D.C.

Mark, good morning to you. Welcome here on AMERICAN MORNING.

MARK HOSENBALL, NEWSWEEK: Hello.

HEMMER: Ahmad Chalabi was asked about that Iranian connection yesterday on "WOLF BLITZER REPORTS." Listen to how he answer thad.

(BEGIN VIDEO CLIP)

AHMAD CHALABI, IRAQI GOVERNING COUNCIL: That's a false charge. We never provided any classified information from the U.S. to Iran. And neither I, nor anyone in the INC. And that is a charge being put out by George Tenet.

(END VIDEO CLIP)

HEMMER: Denies it. You've heard it before, you heard it yesterday, you heard it last week. Why would he work on behalf of Iran? How does he gain there, if true?

HOSENBALL: Well, Iran is the neighbor of Iraq. And Iran, obviously, has some influence over the sort of Shiite community of which he's part of in Iraq. And if he sees, as arguably he's seeing already, that American influence in Iraq is not going to work, or American influence in Iraq is waning, this guy is tremendously ambitious.

That's the whole point. He doesn't care about the United States. He doesn't really care about Iran. He doesn't care about anybody but himself. And so if he sees that Iran is potentially more powerful in the future of Iraq then the United States is, he's going to cozy up to Iran.

HEMMER: I mentioned the report in Newsweek Magazine. Here's a part of what you wrote on the screen for our viewers.

In quoting, "A certain amount of corruption can be expected when new governments rise out of old dictatorships. But according to Iraqi investigators who raided Chalabi's house and headquarters last week, Chalabi has run the INC the way Tony Soprano runs the Bada Bing."

How so, Mark?

HOSENBALL: Well, this guy has been acting, from what we can tell, like a bit of a gangster, like a gang boss. He arrived there in Iraq, air-lifted in there by the Pentagon without apparently the permission of the White House and the State Department, surrounded by this sort of specially trained militia, which then apparently was bolstered by militant supply to him, possibly by the government of Iran.

He's installed relatives and cronies in various ministries somehow in Iraq. So he controls various elements of the economy. And then, allegedly, he's used various government files that he see is with his own militia during and after the war, such as the Ba'ath Party files and Iraqi intelligence files to apparently go around squeezing people, extorting people, shaking them down.

I know somebody -- for example, I know firsthand that he told the United Nations last year that he was going to get them because he had documents about this corruption in the Oil for Food Program. Well, the Oil for Food Program was, indeed, corrupt, but I wouldn't necessarily want this guy to be investigating it, which is what he's trying to do.

HEMMER: Help me understand this, Mark, if the U.S. has basically stiff-armed this guy and did several months ago, and he's done the same in turn, how is it that he would be privy to U.S. secrets in Iraq today?

HOSENBALL: I think that is actually a good question. I mean, we don't really know the strength of these allegations. We know that the intelligence indicated has given sensitive information to Iran was convincing enough and important enough that senior officials at the White House and elsewhere around the government and on Capitol Hill were briefed about it.

We don't really know how underlying this (UNINTELLIGIBLE) the information is. We don't really know that he got classified information. That's certainly being alleged by some people. The FBI is investigating whether he got classified information, whether he passed it on to Iran, whether people in the American government might have passed such information to him. But we don't positively know that those things happened.

What we do know is that, by his own admission, he has a close relationship with Iran. And from his history, we know that he would use basically all weapons available to him, including secret information if he had it, to ingratiate himself with Iran.

HEMMER: Mark, thanks. Mark Hosenball from Newsweek Magazine. Good story. Nice to talk to you.

Soledad?

(WEATHER REPORT)

HEMMER: In a moment here, the clock is ticking on a labor strike. What happens if there is no progress today? Andy has that in a moment.

O'BRIEN: Also, doctors are prescribing antidepressants to kids as young as three and a half. Is it safe? Dr. Sanjay Gupta has a report on that just ahead as AMERICAN MORNING continues.

(COMMERCIAL BREAK)

O'BRIEN: Millions of American children are taking antidepressant drugs. And according to the CDC, preschoolers are actually the fastest growing group of children being medicated. So do the benefits outweigh the potential risks? Our senior medical correspondent, Dr. Sanjay Gupta, tells us of one little girl's struggle and how medication is helping her.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): When Carolyn Sey (ph) was younger, she dealt with severe anxiety. Daily acts, such as putting on a jacket, were stress-ridden choices, usually ending in tears.

UNIDENTIFIED FEMALE: You hear about the terrible twos, and she was five and still doing this. And approaching six. And it just seemed to be getting worse and worse.

GUPTA: Now, Carolyn is 10, and has been taking antidepressants for anxiety and attention disorder for the fast four years.

UNIDENTIFIED FEMALE: I can concentrate better on my work.

GUPTA: And she's not alone. Carolyn is part of a quickly- growing population, young children who are being treated with antidepressants. Alarming? Absolutely. Necessary? Perhaps.

While medication is given to less than one half of one percent of all children, there have been rapid increases in a short time. According to a recent study, antidepressant use increased about 10 percent a year between 1998 and 2002 among preschoolers.

UNIDENTIFIED MALE: These drugs have been given to hundreds of thousands of children in the last, you know, 14 years or so. And the record of side effects is actually exactly very decent.

GUPTA: But there are still many unknowns: tolerance buildup, effects on a developing brain. UNIDENTIFIED MALE: We have to be candid and honest and say there are certain things that we do not know.

GUPTA: But for a parent, when do the short-term benefits outweigh the unknown risks?

UNIDENTIFIED FEMALE: As a parent, if your child is miserable, you become desperate. And certainly, I used to be one of those people that said I would never put my child on any type of a Ritalin or a medication.

GUPTA: For Carolyn, behavioral therapy and alternative treatments didn't work. Only medications provided the answer.

UNIDENTIFIED MALE: We know it's a chemical thing. You know, whether it's your brain or your pancreas or another part of your body, it's a chemical process in the body. And, you know, certainly we cross our fingers that there aren't going to be long-term negatives.

GUPTA: Dr. Sanjay Gupta, CNN, New York.

(END VIDEOTAPE)

O'BRIEN: Doctors say that most children do get better through behavioral therapies without medication. In the U.K., Prozac is the only antidepressant allowed for treating children.

Still to come this morning, the clock is ticking for striking workers of the nation's second largest phone provider. That's ahead as AMERICAN MORNING continues. We've got a short break.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. Straight away to Heidi Collins here with us in New York City.

Welcome, yet again, to you.

COLLINS: Well, thank you very much.

HEMMER: And there's some other news. Good morning.

COLLINS: Yes, some other news. That is indeed the case.

We're talking about President Bush, who is going before the nation tonight. He will outline plans for the transfer of power in Iraq during a primetime speech. It's the first address in a series of speeches he will give. Aides say it's an effort to reassure the public about the war. Mr. Bush is expected to stress his plan to create a democracy in Iraq.

The U.S. military strongly denying a report that a top general in Iraq witnessed Iraqi prisoner abuse firsthand. According to The Washington Post, a military lawyer claims he was told Lieutenant General Ricardo Sanchez was present during some unspecified interrogations at the Abu Ghraib prison. Sanchez has said he was unaware of any abuse until January.

In Paris, authorities at Charles de Gaulle Airport have evacuated some workers from a partially collapsed terminal. Officials fear the terminal could collapse again. Four people died yesterday after part of the terminal collapsed. And according to officials, an investigation will determine if the entire terminal will need to be torn down. Right now, it is not being used for passengers.

Firefighters in New Mexico are trying to push back a wildfire that has scorched about 4,600 acres. The fire near Corona was said to be a human-started warning fire in an area where campfires are banned. Strong winds have fanned the flames and are hampering efforts now by airborne tankers to extinguish the blaze. No injuries have yet been reported.

And at the box office this weekend, "Shrek 2" is number one. Dreamworks' animated sequel, starring the voices of Mike Myers and Cameron Diaz, pulled in more than $104 million just this weekend alone. That makes it number two in the ranking for the biggest three- day movie tally, behind "Spiderman" in 2002. So now you know what to go see.

HEMMER: Enjoy it while it lasts, because "Harry Potter" comes out in two weeks.

COLLINS: Yes, that's what they're saying.

HEMMER: It's going to blow away "Shrek 2," just like "Shrek 2" blew away "Troy."

O'BRIEN: We will see .

COLLINS: A lot of people (UNINTELLIGIBLE) "Harry Potter" -- you know, they say the books, which I have read a lot of, are just so much better because of the way that she explains the details. So I don't know. We'll have to see.

O'BRIEN: And "Troy" off the charts now.

HEMMER: Twenty-three million dollars.

(CROSSTALK)

HEMMER: It's more change than Andy has in his pocket there.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: A lot -- big, big business. Big business.

COLLINS: I see treats.

SERWER: We've got some treats. You're sitting a little far away from them, aren't you, Heidi?

COLLINS: I find out there is food, I can't reach it.

SERWER: We'll get some over to you. O'BRIEN: Look how convenient it is to me!

SERWER: Well, that's the whole point, isn't it?

O'BRIEN: Thank you, Andy.

This morning we're talking about the strike of the nation's second biggest phone provider. Is their message being heard? Also, the market action this morning. Andy Serwer "Minding Your Business." And there's food.

SERWER: And there's food for you, Soledad.

O'BRIEN: Thank you. God bless you.

SERWER: You're welcome.

Let's talk about the markets, though, first. Oil prices are down, stock prices are up this morning. Let's go to the Big Board and check it out. Up 55, 75, 74. That's good.

What's moving this morning? Wal-Mart is up. It says its business is on track. That stock is up about 50 cents to $55.

Let's talk about the SBC situation, the gentlemen's strike. Four days. They said they were going to strike for four days, they struck for four days. The strike ends at midnight tonight. Did they accomplish anything?

O'BRIEN: Did they?

SERWER: No. I think you'd have to say no. The company said, yes, our demands are on the table, they're still there. And if you don't accept them, we're going to take them away.

So I'm not sure what we accomplished here by walking out for four days. A hundred thousand people in 13 states. Obviously, there weren't any disruptions in terms of service. We didn't hear about any of that. But today...

HEMMER: They were very proper, were they not?

SERWER: It was a gentlemen's strike.

HEMMER: Yes.

O'BRIEN: Interesting. Get to the food.

SERWER: Could we get to the food, please? I can tell...

O'BRIEN: Wrap it up,. Get to the food.

SERWER: OK. The food here. These are brand new product in our continuing series to feed our anchor, Soledad O'Brien. These are breakfast yogurt bars.

O'BRIEN: I'm very hungry.

SERWER: Frozen yogurt bars for breakfast. It's not just for dessert anymore. Yoplait makes these. And the big news is the USDA has approved these for consumption by schoolchildren in our nation's public schools.

HEMMER: There you go.

O'BRIEN: It tastes like there's Corn Flakes on the outside.

SERWER: What do you think? Look at Heidi over there.

(CROSSTALK)

HEMMER: These look like...

SERWER: That's right. Those are the orange ones. This is a vanilla flavor. What do you think?

HEMMER: As part of the welcome party here on AMERICAN MORNING, Heidi, we're going to give you...

O'BRIEN: I'm not loving the...

SERWER: She's not loving them. You don't like the outside?

O'BRIEN: And I eat everything, right?

SERWER: You're usually pretty easy.

COLLINS: They don't taste so hot.

SERWER: Soledad is usually very easy with this stuff.

O'BRIEN: It's the Corn Flakes on the outside that are...

SERWER: Bill, 110 calories in the vanilla and strawberry, 180 in the orange.

COLLINS: This is much better. The strawberry is better.

SERWER: See, it matches the outfit over there. Go for the strawberry.

O'BRIEN: You know what? Strawberry is good. But the outside coating is kind of...

SERWER: You don't like that?

COLLINS: It's not...

SERWER: All right. Back to the drawing board, folks, at Yoplait. You've got mixed reviews here.

O'BRIEN: You know what? I liked it better when you were bringing in chocolate doughnuts. SERWER: We'll try.

HEMMER: Thank you, Andy.

(COMMERCIAL BREAK)

HEMMER: Thanks for being with us, everybody. See you again tomorrow, Tuesday morning, 7:00 a.m. to 10:00 a.m., Monday through Friday.

How is that ice-cream, Heidi?

COLLINS: Pretty much gone.

SERWER: She's finishing it off.

HEMMER: She's still working on it.

O'BRIEN: Anything you want to share with us? You're doing a lot of eating this morning.

SERWER: No.

HEMMER: How did you like your first day? Come on. Gosh.

COLLINS: Actually...

O'BRIEN: You coming back tomorrow?

COLLINS: I mean, what's to complain about? There were treats.

SERWER: Bon-Bons for all.

COLLINS: But you've set the standard now, Serwer. You've got to...

SERWER: Every day?

COLLINS: Yes.

SERWER: Well, we'll work on it.

HEMMER: See you again tomorrow.

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 24, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: The President explains to the American people what comes next for Iraq on a day when more explosions rock Baghdad.
Does this videotape prove the U.S. military was wrong about a raid in western Iraq that killed dozens of people?

And spring storms churning across the country, dropping tornadoes from the sky. Where are the dangers now on this AMERICAN MORNING?

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Soledad O'Brien and Bill Hemmer.

BILL HEMMER, CNN ANCHOR: Nine o'clock here in New York. Good morning, everybody. Welcome to AMERICAN MORNING. Other headlines this hour...

The President expected later tonight to lay out how the Iraqi transfer of sovereignty will work. He'll speak to the country in prime time. How much is at stake for the White House politically? We'll talk to Ron Brownstein about that topic this hour in a moment here.

O'BRIEN: Also ahead this morning, The Associated Press has obtained home video apparently of a wedding. Now, locals say it proves that innocent people were killed in a U.S. attack last week in western Iraq. We're going to get an update on that and other developments from Iraq when Harris Whitbeck joins us from Baghdad in just a few moments.

HEMMER: Also this morning, if you were paying attention last Friday, Friday afternoon, new charges stemming from the government's case against Martha Stewart. This time against a witness from her trial that worked for the prosecution. Some are suggesting it could be a tremendous break for Stewart, others are saying, no, not so fast. Bottom line, Jeff Toobin knows it. In a moment, we'll get to Jeff here.

O'BRIEN: That's ahead. But first, Jack Cafferty.

Hello.

JACK CAFFERTY, CNN ANCHOR: Good morning.

What is the one thing you'd like to hear come out of President Bush's mouth when he makes that speech to the nation tonight? There are many issues swirling around this administration in the third year of its first term. What's the one thing you'd like to hear? AM@CNN.com, and we'll read some of the responses later. And some of them are really good.

HEMMER: Wow. Good deal.

O'BRIEN: That's a good tease. All right, Jack, thanks.

About 11 hours from now, President Bush will be at the Army War College in Pennsylvania, where he will begin a series of speeches about the future of Iraq. Earlier here on AMERICAN MORNING, one of the president's top communication aides said that he will concentrate on the Iraqi interim government that will take over partial power at the end of June.

(BEGIN VIDEO CLIP)

SUZY DEFRANCIS, DEPUTY ASSISTANT TO THE PRESIDENT FOR COMMUNICATIONS: He'll specifically talk about how we achieve our goal of a securing and self-governing Iraq that will no longer threaten America or the rest of the world. And he's going to lay out some very steps to get to that goal.

(END VIDEO CLIP)

O'BRIEN: We are told that the President will also address the international community's role in Iraq and how to improve Iraq's infrastructure.

Joining us this morning from Washington, D.C., is CNN political analyst and LA Times political correspondent, Ron Brownstein.

Nice to see you, Ron, as always.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning, Soledad.

O'BRIEN: Let's get right to it. Obviously, this evening is going to be a friendly audience. What do you think the President has to say in this speech?

BROWNSTEIN: Well, I think the overriding need he has is to convince the American public that he has a plan to make this move toward success. When you look at all that's going on in Iraq, whether it's the prison scandal, the casualties, the violence, the real risk at the core of all of that to the President is the erosion of confidence that we are going to succeed in our mission there. And that, I think, is what he has to try to turn around.

There is only so much you can do in a speech, however. In the end, events on the ground will last day after day, while the speech will come and go.

O'BRIEN: Well, in fact, I was going to ask you that. How much can actually be accomplished with the speech? Because when you talk about erosion, specifically the question was the public support for U.S. military policy in Iraq has dropped 18 points since December. How far can you go with the speech?

BROWNSTEIN: Necessary, but not sufficient, as the saying goes. It's important for the President to show the public that he has a clear sense of where he wants to go. In the long run, it's more important that that roadmap that he lays out actually move us in that direction.

Soledad, we saw a rallying around the President in the polls in April after his press conference, where he emphasized resolve to make Iraq work. But the news day after day, first the high levels of casualties in April, then the prison scandal in May, has driven him down to the point where you mentioned he is now, with a very low approval rating on Iraq, that has dragged his overall approval rating down below 50 percent and put him behind John Kerry in most polls.

O'BRIEN: David Gergen earlier this morning said that the fact that the networks have declined to carry this speech means that there is going to be no big breaking news that the President is going to make. Do you think he needs to do some kind of big bombshell, for lack of a better word, where he really moves the ball forward? And do you think the networks have it right that they don't expect that because it hasn't been leaked so far?

BROWNSTEIN: Well, what they're saying -- in fact, the White House is saying that there will not a groundbreaking policy shift. This speech is more designed to reassert why we were there, give people a better sense of what the next steps are that the President envisions on the road to the June 30 handoff, and also to give people kind of a sober assessment that this is not going to be easy. As if really they need to be reminded of that.

So in that sense, the networks can make that judgment. Right now, the President does not feel the need, or even perhaps feel that he has the option to change course. Whether -- again, whether that posture is sustainable will depend more on events than on the words that he offers tonight.

O'BRIEN: Well, there's another book out there. Retired General Anthony Zinni has written a book, and here is what he says -- a little bit of it.

"In the lead-up to the war in Iraq and later conduct, I saw at a minimum true dereliction, negligence, irresponsibility. At worst, lying, incompetence, corruption. If there is a center that could hold this mess together, I don't know what it is. Civil war could break out at any time."

"Resources are needed. A strategy is needed. A plan is needed."

That is an incredibly harsh critique of the administration's plans or lack thereof going into Iraq. Do you think this just adds to yet another book or movie critical of the President, or do you think it really could have an impact?

BROWNSTEIN: Well, I think it reinforces what is already going on. I mean, what you're seeing -- first of all, General Zinni has been one of the most persistent and eloquent critics of the former Mideast envoy of the administration. But it really tracks with what we're seeing in Washington, which is sort of this growing concern even among Republicans in the Senate, who have been very reluctant to exercise an oversight role but have become more aggressive in the last few weeks.

Senator Lugar, chair of the Foreign Relations Committee, Senator Warner, chair of the Armed Services Committee, tougher questions are being asked. And in the end, I think it is in the administration's interest to have these questions asked because they are going to be judged by results. And they need to have this plan, sort of their direction questioned, challenged, ad hopefully for the country and the President. Produce something that has a better chance of success than the road we seem to be on right now.

O'BRIEN: CNN political analyst Ron Brownstein joining us this morning. Ron, as always, thanks.

And CNN will have live coverage of the president's address tonight in a special edition of "PAULA ZAHN NOW" at 8:00 p.m. Eastern Time.

Bill?

HEMMER: Six minutes past the hour. A strong, blunt denial from the U.S. military this weekend. A report in The Washington Post saying that the Army's top commander in Iraq witnessed or knew about the abuse of Iraqi prisoners. That report says Lieutenant General Ricardo Sanchez was present during inmate interrogations of the Abu Ghraib prison west of Baghdad. It came from the attorney for Sergeant Ivan Chip Frederick, one of the soldiers charged in that scandal.

In the statement, Brigadier General Mark Kimmitt says -- I'm quoting now -- "This report is false, and Lieutenant General Sanchez stands by his testimony before congressional committees." Retired Army Major General Michael Nardotti, a former Army judge, advocate general, our guest to talk about this.

And welcome here to AMERICAN MORNING.

MAJ. GEN. MICHAEL NARDOTTI (RET.), FMR. ARMY JAG: Thank you very much, Bill.

HEMMER: What is your take on this?

NARDOTTI: Well, I think we have to be careful to view this in the proper context. The information that came out in that report yesterday is about two months old. It was at a hearing on April 2nd. And also, the defense counsel was making a representation. Captain Shook (ph), the defense counsel, was making a representation as to what he believed the company commander, Captain Reese (ph), would say if he were able to talk about this.

He would say that he believed that General Sanchez witnessed some of the activities that are now the suB.J.ect of the courts-martial. However, as was also noted in that report, Captain Reese (ph) was questioned during the interview -- during the investigation of General Taguba. And he did not indicate any involvement or any knowledge by General Sanchez. So there are some issues there that...

HEMMER: Let me clarify this. You're saying the dates are critical and important. Why is that then?

NARDOTTI: Well, that's because this was a hearing in the first part of April. We're about 60 days down the road. The defense counsel made that representation, and certain things should have followed from that. We don't know what they are, we don't know whether or not the defense counsel had an opportunity to pursue other avenues to try to corroborate what Captain Reese (ph) had said.

For instance, the schedules of general officers in virtually anywhere that you go would be fairly easy to track in terms of a matter of record. And I think they could certainly go back and determine whether or not General Sanchez had visited the prison.

HEMMER: So you watch the timeline, you see how your defense adds up. But if you're going to defend yourself in case like this, doesn't it help you immensely if you can prove that a senior above knew about your involvement and that that would exonerate you effectively? True or not?

NARDOTTI: It depends on what the facts are, the specific facts with respect to the misconduct charge against staff Sergeant Frederick. Certainly, the -- in the first instance, first of all, if there was some command support or encouragement of this, that might mitigate the circumstance. But it would not excuse it.

In that instance, if higher-ups in the chain of command solicited that or encouraged it, they would be as culpable as those committing the unlawful acts. But, in particular, look at the acts that the soldiers are charged with, and you have to make a judgment as to whether or not they legitimately fall within the bounds of the intensified interrogation techniques that were being encouraged, or did they go beyond that to the type of abuse and retaliation for which there would no justification.

HEMMER: Others are suggesting you need to bring everybody at that prison back to this center location, because a lot of them dispersed about Iraq. Probably some of them come home as well. To get this case going, you're going to have to have the testimony from each and every person that was there.

Thank you. Good to talk to you. Major General Michael Nardotti there in D.C. Thanks -- pleasure,

NARDOTTI: You're welcome, Bill.

HEMMER: Soledad?

(WEATHER REPORT)

O'BRIEN: Well, prosecutors are afraid that Michael Jackson could jump bail and flee the country. The district attorney is opposed to reducing Jackson's $3 million bond. Jackson is charged with child molestation. A motion by the prosecution says that $3 million is a lot of money to leave behind, even for him.

A witness who testified in the Martha Stewart trial has been now charged with perjury. What does that mean for Stewart's conviction? CNN senior legal analyst Jeff Toobin back to talk about this one.

This is kind of an unusual case. We're talking about the guy who was the ink expert.

JEFFREY TOOBIN, CNN LEGAL ANALYST: The national expert for ink, as he described himself.

O'BRIEN: And apparently he, at the very least, exaggerated his role. He's now been charged with two counts of perjury. People think he lied on the stand in that testimony, in the Martha Stewart case specifically.

But the U.S. attorney, David Kelly, says he thinks it's going to have, "no impact on the convictions of Stewart and Bacanovic." That seems surprising to me.

TOOBIN: Well, it's a very unusual situation. I've never heard of a government witness being charged with perjury even before the defendants in a case are being sentenced.

The issue is, did the testimony contribute in a material way to their convictions? The government argues, no, it didn't, because the specific document that was at issue in this fellow's testimony, that document was -- Bacanovic was charged with falsifying it. He was acquitted of that charge. So the government says, look, it doesn't relate to Stewart, Bacanovic was acquitted of the charge. So his testimony was essentially irrelevant to the core conduct.

O'BRIEN: So now Bacanovic's lawyers want to get a new trial. I think they've actually already gone ahead and asked for a new trial. If he was acquitted on the charges that this witness was being -- you know, testifying about, what are their likelihood? What's the chance that they're going to get a new trial based on this?

TOOBIN: Well, it's interesting to follow the stock market. As soon as the news broke that someone was being charged with perjury in connection with this case, Martha Stewart's stock went up 23 percent, shot up. People think, oh, she's going to get a new trial, the company's going to be OK.

As the news started percolating through, the stock only went up nine percent. I think it's going to be tougher than many of us originally thought for them to get a new trial because the information was not directly relevant to the core counts against him. However, the defendants will argue it was relevant to the conspiracy count, it was relevant to the overall counts against them, so maybe that's enough to get them a new trial.

O'BRIEN: Very briefly, because we're out of time, you saw this guy on the stand. How was he? TOOBIN: He was weird. He was a very strange guy.

O'BRIEN: Egomaniac?

TOOBIN: He was full of ego. And what he's accused of lying about is he says he performed the actual tests on the document. The government says, no, he didn't do any tests, he just reviewed the work of other people. It's not the most surprising charge in the world for those of us who watched the testimony because he did seem so caught up in his ink expertise, which was a field that I certainly didn't know much about before this trial.

O'BRIEN: Well, now you know a lot more about it, right, Jeff?

TOOBIN: I sat there day after day listening to him.

O'BRIEN: Jeffrey Toobin, thanks, as always.

TOOBIN: OK.

O'BRIEN: And let's turn back to Heidi Collins and a look at some of the other stories that are making headlines this morning.

Heidi, good morning again.

HEIDI COLLINS, CNN ANCHOR: Good morning, Soledad. And good morning to you, everybody. Fifteen minutes past the hour now. I want to get you caught up on the headlines.

The U.S. will circulate a draft resolution on Iraq among U.N. Security Council members. A senior State Department official says U.S. and British officials will discuss the text with members of the 15-nation council today. U.S. officials say the new resolution will define a larger U.N. role in Iraq and lay out steps for Iraq's reconstruction.

Rail commuters may see some delays today as security on passenger train service across the country gets tighter. New federal mandates are now in effect on subway and rail systems. Bomb-sniffing dogs and random I.D. checks are part of the plan. The new security guidelines are said to be a response to the Madrid train attacks which killed nearly 200 people back in March.

Closing arguments getting under way this morning in the state murder trial of Oklahoma City bombing conspirator Terry Nichols. The judge is first expected to rule on several defense motions before the arguments start. Nichols is already serving a life term on a federal conviction and could face the death penalty if convicted in a state trial.

To Michigan now. Residents are trying to recover after three days of fierce storms there. Heavy rains pounded the southern part of the state, causing widespread flooding and submerging homes under water, like that one you see there. Over 20 counties remain under a flood warning this morning. Power was knocked out to tens of thousands of homes due to high winds. To the NBA playoffs. The Minnesota Timberwolves tear through game two 89-71, to even it up with the Los Angeles Lakers. The Timberwolves Derek Martin stepped off the bench for 15 points after Sam Cassell (ph) left the game with a back injury.

Lakers' star Kobe Bryant's 27 points wasn't enough to keep his team in the game. The Lakers heading now for home. Game three coming up tomorrow. So we'll see how they do on the home court.

HEMMER: That's a heck of a series.

COLLINS: A heck of a series.

HEMMER: And you're staying oB.J.ective on this, right? Because you grew up in Minnesota.

COLLINS: Being oB.J.ective as always -- Timberwolves!

O'BRIEN: She was talking about it this morning and made -- exactly, just like that.

HEMMER: Good to have you, Heidi.

COLLINS: Thank you.

HEMMER: All right. Back to Jack and the Question of the Day.

CAFFERTY: Big night tonight for President Bush. What is the most important thing you'd like him to say? What are you looking forward to hearing come out of the president's mouth as he talks about the war in Iraq and all of the difficulties?

Renee in Connecticut: "President Bush is doing a terrific job. And the reason you don't get a lot of these is because thoughtful Americans do not watch CNN for its partisanship coverage of world events."

Renee, you're watching, though. You know what I'm saying?

Peter in Houston, Texas: "This is it. After Abu Ghraib, I've almost given up on this war. This is Mr. Bush's last chance to convince me. We're on the verge of a clash of civilizations and everything depends tonight on Mr. Bush's ability to justify this war."

And Tom in New York writes: "I want to hear President Bush say we're going to stay the course. I'm disgusted by the impatience, short-sightedness and selfishness of this generation. The United States changes its mind every week based on the latest headlines. If this generation was living in the '40s, it wouldn't have the endurance to defeat Germany and Japan."

AM@CNN.com.

HEMMER: Thank you, Jack.

In a moment here, an explosion killing two near a coalition checkpoint. Live to Baghdad and what is happening there today in a moment.

O'BRIEN: Also, Ahmad Chalabi was once a U.S. favorite to lead a post-war Iraq. Well, now he's accused of spying. We're going to take a look at his fall from favor.

HEMMER: Also, later tonight in LA, Madonna is back on stage. She's 45 years old, she's a mother, and she can still shock you. "90- Second Pop" has a shot at that in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Madonna is back, and you can see her for the low, low price of $936! Honest! Face value for some of the tickets.

Welcome back, everybody, on a Monday. "90-Second Pop" comes your way. B.J. Sigesmund, staff editor for US Weekly -- nice to see you, B.J.. Good morning.

B.J. SIGESMUND, STAFF WRITER, US WEEKLY: Good to see you.

HEMMER: Sarah Bernard, contributing editor for New York Magazine. And a first-timer, humorist Paul Scheer.

Michael Moore wins at Cannes over the weekend. Shocked everybody. I think even him. Before we get into what happened in France, why is this film so controversial?

SIGESMUND: Basically, it takes aim at President Bush and his handling of the war in Iraq. And it connects the Bush family to several prominent Saudis.

HEMMER: Or so he alleges in this film?

SIGESMUND: Yes. Yes. And including the family of Osama himself.

But the reason this is controversial, you know Cannes gave this film a lot of legitimacy now. And overnight it is a huge thorn in President Bush's side. This is a two-hour screen against the president that now has a must-see feel to it, like we saw with "The Passion."

HEMMER: But you read the reviews last week. The critics panned this film. They said all the information was old. It was all in a book two years ago.

SIGESMUND: Yes, but that doesn't matter. Five to 10 million people are going to see it when they ultimately release it at the height of the election season. So its impact cannot be overestimated.

SARAH BERNARD, CONTRIBUTING EDITOR, NEW YORK MAGAZINE: I think what is more exciting is the drama between Harvey Weinstein and Michael Eisner. I mean the drama between the political side is important, but this is really going to be a problem for Michael Eisner because...

PAUL SCHEER, HUMORIST: Miramax is going to pull out from Disney now and actually be their own company now.

HEMMER: Last documentary to win at Cannes was what?

BERNARD: (UNINTELLIGIBLE), 1966.

HEMMER: Very good. Very good, you guys. You'll be back, by the way.

Madonna starts her tour tonight in Los Angeles. Boy, what does she have planned, huh?

SCHEER: Just when you think it was safe, Madonna is back. She used to be -- she's into the Kabbalah. She writes children's books. But now her new tour, Reinvention, has an electric chair, pregnant women that are nearly naked, and a lot of lesbian fantasy scenes.

BERNARD: It's typical Madonna, though, don't you think? I mean, it's really just her same stuff. But what's happened is she started the whole shocking everybody thing with her "Like a Virgin" tour, rolling around on the stage in her wedding dress. And now it's so hard for her to be shocking because everybody has caught up with her completely.

SIGESMUND: Although, Liz Rosenberg, Madonna's rep, told US Weekly that there aren't scantily clad pregnant women in the show. But she did say that behind the scenes, back stage, it's the mellowist vibe she's ever experience on a Madonna tour.

BERNARD: Oh, I don't know if I believe that.

SIGESMUND: She attributed it to Kabbalah.

HEMMER: Sarah, I think your point is exactly right. She always has to push it to continue to get headlines.

BERNARD: Absolutely.

HEMMER: And attention.

BERNARD: And now she's got Britney and Christina doing all the same things she used to do.

SCHEER: I'm actually scared for the next Britney tour, because now Britney has to one-up Madonna. At this point she's going to have to...

SIGESMUND: But there will not be a return of the Jean Paul Gautier cone bras. She is not reinventing those.

(CROSSTALK)

HEMMER: P. Diddy wants to talk to John Kerry and George Bush.

BERNARD: Isn't that amazing?

HEMMER: And his quote was, "I'm going to make Kerry and Bush squirm."

BERNARD: Yes, watch out.

HEMMER: What's he got planned?

BERNARD: Well, he's working on a political talk show. So he's going from Broadway to -- he's trying to beat Tim Russert now, I think, is actually what he's trying to do. He's got a show in the works called "Product Change," and he has figured out that people who get to ask the presidents questions are often screened. Can you believe it?

So what he wants to do is get real people from New York, from Detroit, to ask what they really want to know. And put the questions to them live on TV.

SIGESMUND: The amazing thing, though, is that reps for Bush and Kerry have both said that they're willing to do it. So I think it's just a matter of time.

BERNARD: But I think this is really going to be the first up into P. Diddy's political aspirations. I think he's looking for a way in.

(CROSSTALK)

SIGESMUND: Well, he seems to feel that is there nothing he can't do.

BERNARD: Yes. He's not afraid of failure or embarrassment.

HEMMER: He's a very busy man. "Raisin in the Sun" on Broadway. The ticket has record sales at that theater. He's got a perfume planned?

BERNARD: Yes.

(CROSSTALK)

HEMMER: Is it perfume or is it cologne?

BERNARD: I think it's perfume. He knows what to do.

SCHEER: Like two years ago he was allegedly in this incident with a gun in a club, and now he's like the McLaughlin Group. You know? This is amazing for this guy. Like he's turned around.

HEMMER: Well done, Paul. You'll be back.

See you later, OK? Sarah, B.J., great to see you on a Monday.

All right. Here's Soledad.

O'BRIEN: Bill, thanks.

Still to come this morning, President Bush will make a major speech on Iraq tonight. Much is expected. A look at that coming up.

And also, more than 80 tornadoes tore through the Midwest this weekend. Today's outlook for that not good. The damage and a forecast just ahead as AMERICAN MORNING continues right after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

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

There were more attacks on the coalition this morning at the entrance to Baghdad's so-called Green Zone. Two British civilians were killed. Harris Whitbeck is standing by for us this morning on the very latest of what happened there.

HEMMER: Also, back in this country, really tough news weather- wise. Those people in Nebraska hardest hit by the tornadoes, cleaning up again today. Massive twisters ripping over the weekend through there. At least 18, some say 19 touching down. Forecasters say another risk today. We'll look at the weather map in a few moments and let you know what we're seeing so far.

O'BRIEN: That twister just wiped out that town.

HEMMER: Unbelievable. That's right.

O'BRIEN: Completely gone it looks like.

Also this morning, what is happening to children who take drugs like Prozac and Paxil and Zoloft before they even get out of elementary school? Dr. Sanjay Gupta has the latest medical research on children and antidepressants.

HEMMER: In the meantime, though, here at the half-hour, back to Iraq. Several explosions heard across Baghdad earlier today. The most serious killed two British citizens near an entrance to the so- called Green Zone, where the U.S Coalition Authority has its offices. Straight to Baghdad and Harris Whitbeck for more on this.

Harris, what do you have?

HARRIS WHITBECK, CNN CORRESPONDENT: Hello, Bill. We've heard at least six smaller explosions since the one that killed two British civilians outside the Green Zone this morning. That incident occurred when the SUV that they were traveling in, an SUV that was armored, apparently hit an improvised explosive device. The British foreign office confirming that two British civilians were killed and one more was wounded. The explosion occurred not too far from a checkpoint near the (UNINTELLIGIBLE) gate entrance to the Green Zone, which, as you know, houses the headquarters for the U.S.-led coalition here in Iraq.

Meanwhile, last week's U.S. air strike against a group of people in the desert near the border with Syria continues to spark more questions this morning. Television news agency APTN distributed a video it obtained that shows the people attacked last Wednesday by U.S. aircraft were celebrating a traditional tribal wedding. And one of the images you can see a wedding musician who was buried the next day in Baghdad. And APTN also had pictures of that burial ceremony, proving that it was the same man.

Now, neither APTN or CNN have been able to confirm the authenticity of these videos. The U.S. military spokesman in Baghdad continued to insist the attack was on a group of foreign fighters use a safe house near the Syrian border. And they said, "Bad people can have parties, too." They also showed pictures of medical and military equipment that they say proves their version of those events -- Bill.

HEMMER: Harris Whitbeck, following all the action yet again today in Iraq. Another busy day out of Baghdad.

Meanwhile, Ahmad Chalabi has fallen an awful long way in a short period of time. As the war started, more than a year ago, he had been working closely with the White House and the Pentagon. Now, he is accused of spying and doing it for Iran, a charge Chalabi says was invented by the CIA director, George Tenet. He was talking yesterday.

Mark Hosenball has a feature story on Chalabi in Newsweek Magazine. He's here to talk about it live in D.C.

Mark, good morning to you. Welcome here on AMERICAN MORNING.

MARK HOSENBALL, NEWSWEEK: Hello.

HEMMER: Ahmad Chalabi was asked about that Iranian connection yesterday on "WOLF BLITZER REPORTS." Listen to how he answer thad.

(BEGIN VIDEO CLIP)

AHMAD CHALABI, IRAQI GOVERNING COUNCIL: That's a false charge. We never provided any classified information from the U.S. to Iran. And neither I, nor anyone in the INC. And that is a charge being put out by George Tenet.

(END VIDEO CLIP)

HEMMER: Denies it. You've heard it before, you heard it yesterday, you heard it last week. Why would he work on behalf of Iran? How does he gain there, if true?

HOSENBALL: Well, Iran is the neighbor of Iraq. And Iran, obviously, has some influence over the sort of Shiite community of which he's part of in Iraq. And if he sees, as arguably he's seeing already, that American influence in Iraq is not going to work, or American influence in Iraq is waning, this guy is tremendously ambitious.

That's the whole point. He doesn't care about the United States. He doesn't really care about Iran. He doesn't care about anybody but himself. And so if he sees that Iran is potentially more powerful in the future of Iraq then the United States is, he's going to cozy up to Iran.

HEMMER: I mentioned the report in Newsweek Magazine. Here's a part of what you wrote on the screen for our viewers.

In quoting, "A certain amount of corruption can be expected when new governments rise out of old dictatorships. But according to Iraqi investigators who raided Chalabi's house and headquarters last week, Chalabi has run the INC the way Tony Soprano runs the Bada Bing."

How so, Mark?

HOSENBALL: Well, this guy has been acting, from what we can tell, like a bit of a gangster, like a gang boss. He arrived there in Iraq, air-lifted in there by the Pentagon without apparently the permission of the White House and the State Department, surrounded by this sort of specially trained militia, which then apparently was bolstered by militant supply to him, possibly by the government of Iran.

He's installed relatives and cronies in various ministries somehow in Iraq. So he controls various elements of the economy. And then, allegedly, he's used various government files that he see is with his own militia during and after the war, such as the Ba'ath Party files and Iraqi intelligence files to apparently go around squeezing people, extorting people, shaking them down.

I know somebody -- for example, I know firsthand that he told the United Nations last year that he was going to get them because he had documents about this corruption in the Oil for Food Program. Well, the Oil for Food Program was, indeed, corrupt, but I wouldn't necessarily want this guy to be investigating it, which is what he's trying to do.

HEMMER: Help me understand this, Mark, if the U.S. has basically stiff-armed this guy and did several months ago, and he's done the same in turn, how is it that he would be privy to U.S. secrets in Iraq today?

HOSENBALL: I think that is actually a good question. I mean, we don't really know the strength of these allegations. We know that the intelligence indicated has given sensitive information to Iran was convincing enough and important enough that senior officials at the White House and elsewhere around the government and on Capitol Hill were briefed about it.

We don't really know how underlying this (UNINTELLIGIBLE) the information is. We don't really know that he got classified information. That's certainly being alleged by some people. The FBI is investigating whether he got classified information, whether he passed it on to Iran, whether people in the American government might have passed such information to him. But we don't positively know that those things happened.

What we do know is that, by his own admission, he has a close relationship with Iran. And from his history, we know that he would use basically all weapons available to him, including secret information if he had it, to ingratiate himself with Iran.

HEMMER: Mark, thanks. Mark Hosenball from Newsweek Magazine. Good story. Nice to talk to you.

Soledad?

(WEATHER REPORT)

HEMMER: In a moment here, the clock is ticking on a labor strike. What happens if there is no progress today? Andy has that in a moment.

O'BRIEN: Also, doctors are prescribing antidepressants to kids as young as three and a half. Is it safe? Dr. Sanjay Gupta has a report on that just ahead as AMERICAN MORNING continues.

(COMMERCIAL BREAK)

O'BRIEN: Millions of American children are taking antidepressant drugs. And according to the CDC, preschoolers are actually the fastest growing group of children being medicated. So do the benefits outweigh the potential risks? Our senior medical correspondent, Dr. Sanjay Gupta, tells us of one little girl's struggle and how medication is helping her.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): When Carolyn Sey (ph) was younger, she dealt with severe anxiety. Daily acts, such as putting on a jacket, were stress-ridden choices, usually ending in tears.

UNIDENTIFIED FEMALE: You hear about the terrible twos, and she was five and still doing this. And approaching six. And it just seemed to be getting worse and worse.

GUPTA: Now, Carolyn is 10, and has been taking antidepressants for anxiety and attention disorder for the fast four years.

UNIDENTIFIED FEMALE: I can concentrate better on my work.

GUPTA: And she's not alone. Carolyn is part of a quickly- growing population, young children who are being treated with antidepressants. Alarming? Absolutely. Necessary? Perhaps.

While medication is given to less than one half of one percent of all children, there have been rapid increases in a short time. According to a recent study, antidepressant use increased about 10 percent a year between 1998 and 2002 among preschoolers.

UNIDENTIFIED MALE: These drugs have been given to hundreds of thousands of children in the last, you know, 14 years or so. And the record of side effects is actually exactly very decent.

GUPTA: But there are still many unknowns: tolerance buildup, effects on a developing brain. UNIDENTIFIED MALE: We have to be candid and honest and say there are certain things that we do not know.

GUPTA: But for a parent, when do the short-term benefits outweigh the unknown risks?

UNIDENTIFIED FEMALE: As a parent, if your child is miserable, you become desperate. And certainly, I used to be one of those people that said I would never put my child on any type of a Ritalin or a medication.

GUPTA: For Carolyn, behavioral therapy and alternative treatments didn't work. Only medications provided the answer.

UNIDENTIFIED MALE: We know it's a chemical thing. You know, whether it's your brain or your pancreas or another part of your body, it's a chemical process in the body. And, you know, certainly we cross our fingers that there aren't going to be long-term negatives.

GUPTA: Dr. Sanjay Gupta, CNN, New York.

(END VIDEOTAPE)

O'BRIEN: Doctors say that most children do get better through behavioral therapies without medication. In the U.K., Prozac is the only antidepressant allowed for treating children.

Still to come this morning, the clock is ticking for striking workers of the nation's second largest phone provider. That's ahead as AMERICAN MORNING continues. We've got a short break.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. Straight away to Heidi Collins here with us in New York City.

Welcome, yet again, to you.

COLLINS: Well, thank you very much.

HEMMER: And there's some other news. Good morning.

COLLINS: Yes, some other news. That is indeed the case.

We're talking about President Bush, who is going before the nation tonight. He will outline plans for the transfer of power in Iraq during a primetime speech. It's the first address in a series of speeches he will give. Aides say it's an effort to reassure the public about the war. Mr. Bush is expected to stress his plan to create a democracy in Iraq.

The U.S. military strongly denying a report that a top general in Iraq witnessed Iraqi prisoner abuse firsthand. According to The Washington Post, a military lawyer claims he was told Lieutenant General Ricardo Sanchez was present during some unspecified interrogations at the Abu Ghraib prison. Sanchez has said he was unaware of any abuse until January.

In Paris, authorities at Charles de Gaulle Airport have evacuated some workers from a partially collapsed terminal. Officials fear the terminal could collapse again. Four people died yesterday after part of the terminal collapsed. And according to officials, an investigation will determine if the entire terminal will need to be torn down. Right now, it is not being used for passengers.

Firefighters in New Mexico are trying to push back a wildfire that has scorched about 4,600 acres. The fire near Corona was said to be a human-started warning fire in an area where campfires are banned. Strong winds have fanned the flames and are hampering efforts now by airborne tankers to extinguish the blaze. No injuries have yet been reported.

And at the box office this weekend, "Shrek 2" is number one. Dreamworks' animated sequel, starring the voices of Mike Myers and Cameron Diaz, pulled in more than $104 million just this weekend alone. That makes it number two in the ranking for the biggest three- day movie tally, behind "Spiderman" in 2002. So now you know what to go see.

HEMMER: Enjoy it while it lasts, because "Harry Potter" comes out in two weeks.

COLLINS: Yes, that's what they're saying.

HEMMER: It's going to blow away "Shrek 2," just like "Shrek 2" blew away "Troy."

O'BRIEN: We will see .

COLLINS: A lot of people (UNINTELLIGIBLE) "Harry Potter" -- you know, they say the books, which I have read a lot of, are just so much better because of the way that she explains the details. So I don't know. We'll have to see.

O'BRIEN: And "Troy" off the charts now.

HEMMER: Twenty-three million dollars.

(CROSSTALK)

HEMMER: It's more change than Andy has in his pocket there.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: A lot -- big, big business. Big business.

COLLINS: I see treats.

SERWER: We've got some treats. You're sitting a little far away from them, aren't you, Heidi?

COLLINS: I find out there is food, I can't reach it.

SERWER: We'll get some over to you. O'BRIEN: Look how convenient it is to me!

SERWER: Well, that's the whole point, isn't it?

O'BRIEN: Thank you, Andy.

This morning we're talking about the strike of the nation's second biggest phone provider. Is their message being heard? Also, the market action this morning. Andy Serwer "Minding Your Business." And there's food.

SERWER: And there's food for you, Soledad.

O'BRIEN: Thank you. God bless you.

SERWER: You're welcome.

Let's talk about the markets, though, first. Oil prices are down, stock prices are up this morning. Let's go to the Big Board and check it out. Up 55, 75, 74. That's good.

What's moving this morning? Wal-Mart is up. It says its business is on track. That stock is up about 50 cents to $55.

Let's talk about the SBC situation, the gentlemen's strike. Four days. They said they were going to strike for four days, they struck for four days. The strike ends at midnight tonight. Did they accomplish anything?

O'BRIEN: Did they?

SERWER: No. I think you'd have to say no. The company said, yes, our demands are on the table, they're still there. And if you don't accept them, we're going to take them away.

So I'm not sure what we accomplished here by walking out for four days. A hundred thousand people in 13 states. Obviously, there weren't any disruptions in terms of service. We didn't hear about any of that. But today...

HEMMER: They were very proper, were they not?

SERWER: It was a gentlemen's strike.

HEMMER: Yes.

O'BRIEN: Interesting. Get to the food.

SERWER: Could we get to the food, please? I can tell...

O'BRIEN: Wrap it up,. Get to the food.

SERWER: OK. The food here. These are brand new product in our continuing series to feed our anchor, Soledad O'Brien. These are breakfast yogurt bars.

O'BRIEN: I'm very hungry.

SERWER: Frozen yogurt bars for breakfast. It's not just for dessert anymore. Yoplait makes these. And the big news is the USDA has approved these for consumption by schoolchildren in our nation's public schools.

HEMMER: There you go.

O'BRIEN: It tastes like there's Corn Flakes on the outside.

SERWER: What do you think? Look at Heidi over there.

(CROSSTALK)

HEMMER: These look like...

SERWER: That's right. Those are the orange ones. This is a vanilla flavor. What do you think?

HEMMER: As part of the welcome party here on AMERICAN MORNING, Heidi, we're going to give you...

O'BRIEN: I'm not loving the...

SERWER: She's not loving them. You don't like the outside?

O'BRIEN: And I eat everything, right?

SERWER: You're usually pretty easy.

COLLINS: They don't taste so hot.

SERWER: Soledad is usually very easy with this stuff.

O'BRIEN: It's the Corn Flakes on the outside that are...

SERWER: Bill, 110 calories in the vanilla and strawberry, 180 in the orange.

COLLINS: This is much better. The strawberry is better.

SERWER: See, it matches the outfit over there. Go for the strawberry.

O'BRIEN: You know what? Strawberry is good. But the outside coating is kind of...

SERWER: You don't like that?

COLLINS: It's not...

SERWER: All right. Back to the drawing board, folks, at Yoplait. You've got mixed reviews here.

O'BRIEN: You know what? I liked it better when you were bringing in chocolate doughnuts. SERWER: We'll try.

HEMMER: Thank you, Andy.

(COMMERCIAL BREAK)

HEMMER: Thanks for being with us, everybody. See you again tomorrow, Tuesday morning, 7:00 a.m. to 10:00 a.m., Monday through Friday.

How is that ice-cream, Heidi?

COLLINS: Pretty much gone.

SERWER: She's finishing it off.

HEMMER: She's still working on it.

O'BRIEN: Anything you want to share with us? You're doing a lot of eating this morning.

SERWER: No.

HEMMER: How did you like your first day? Come on. Gosh.

COLLINS: Actually...

O'BRIEN: You coming back tomorrow?

COLLINS: I mean, what's to complain about? There were treats.

SERWER: Bon-Bons for all.

COLLINS: But you've set the standard now, Serwer. You've got to...

SERWER: Every day?

COLLINS: Yes.

SERWER: Well, we'll work on it.

HEMMER: See you again tomorrow.

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