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American Morning

Countdown to Handover: Bush's Iraq Plan; Pain at the Pump

Aired May 25, 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.


(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If they need more troops, I will send them.

(END VIDEO CLIP)

BILL HEMMER, CNN ANCHOR: Good morning. The president says the occupation of Iraq is ending soon, but sending more troops is a possibility.

A developing story in Georgia. A massive chemical fire burning right now in suburban Atlanta.

And the volatile spring weather exploding across the Midwest yet again on this AMERICAN MORNING.

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

SOLEDAD O'BRIEN, CNN ANCHOR: I love that shot. What a beautiful day it's going to be here in New York City. Welcome, everybody.

Some news making headlines this morning: President Bush says there will be difficult, even chaotic days ahead in Iraq. Last night he explained what will come next in the transfer of sovereignty. John King joins us in just a moment to go through the five-point plan. We'll also get some Democratic reaction this morning from Senator Joseph Biden.

HEMMER: Also, been a very tough month of May. Spring weather still keeping people very busy in parts of the Midwest. More tornadoes yesterday, now more flooding. We'll let you know what's happening out there today in a moment.

O'BRIEN: Also this morning, putting the high gas prices into some perspective. Tom Foreman looking at what you pay for gas now, what you really were paying 20 years ago, and just who is shelling out the most.

HEMMER: And we'll get to that also.

Jack Cafferty, good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning. President Bush last night said if Iraq wants it to, the United States will tear down the prison at Abu Ghraib and build a new prison there. Presumably, the taxpayer payers here would fund that. Symbolically, perhaps, trying to put this prisoner abuse scandal behind us. Is it enough, or what else needs to be done? AM@CNN.com is the e-mail address.

O'BRIEN: Jack, thank you very much.

CAFFERTY: You're welcome, Soledad.

O'BRIEN: And likewise. We're having a tough time. What?

CAFFERTY: Why are you giggling?

O'BRIEN: Nothing.

CAFFERTY: Nothing funny about serious business.

O'BRIEN: It is serious, and I'm just trying to move forward with my day, Jack. All right?

CAFFERTY: Yes, ma'am. That's not easy for you these days, is it, moving anywhere? I'm sorry.

O'BRIEN: Are you quite through?

CAFFERTY: Yes. I'll stop now.

O'BRIEN: OK. Then I'm moving on.

CAFFERTY: OK.

O'BRIEN: President Bush is predicting some difficult days ahead as Iraq gets closer to taking control of its own affairs at the end of June. He rolled out his five-point plan for Iraq's future last night before a military crowd in Pennsylvania. Joining us this morning with details, senior White House correspondent John King.

John, good morning.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Good morning to you, Soledad.

To hear the White House tell it, the president laid out a detailed plan last night that will have that handover of sovereignty take place in just five weeks. But the president's critics say the speech was full of generalities, no new policy proposals. And those critics say it left too many unanswered questions.

(BEGIN VIDEOTAPE)

KING (voice-over): At the Army War College, the commander in chief confronting mounting doubts about his war plan and his leadership.

BUSH: We must keep our focus. We must do our duty.

KING: The one new promise was aimed at easing the pain of the prisoner abuse scandal. BUSH: With the approval of the Iraqi government, we will demolish the Abu Ghraib prison as a fitting symbol of Iraq's new beginning.

KING: That new beginning is detailed in a new United Nations resolution the United States and Britain circulated Monday. The draft resolution calls for a sovereign interim government by June 30th and elections to pick a transitional government no later than January 2005, promises to train new Iraqi military and police forces, and in the meantime gives U.S. and other coalition troops authority to take all necessary measures to maintain security.

BUSH: I sent American troops to Iraq to defend our security, not to stay as an occupying power. I sent American troops to Iraq to make its people free, not to make them American.

KING: The nearly 140,000 U.S. troops in Iraq now will stay after the transfer of sovereignty and...

BUSH: If they need more troops, I will send them.

KING: The War College atmosphere was much more sober than the president's dramatic carrier visit a year ago to declare major combat in Iraq over. One hundred thirty-nine Americans had been killed in Iraq at that point. The death toll is nearly six times that now, and Mr. Bush's political standing has declined as doubts about his Iraq policy has mushroomed.

Forty-seven percent of Americans now approve of how Mr. Bush is handling his job, down 13 points since January and down 22 points from a year ago. This was the first of a series of speeches planned in the five weeks until the transfer of sovereignty.

(END VIDEOTAPE)

KING: And critics say the president gave no estimate at all of when U.S. troops can come home. The White House says he can't give that estimate yet, but that it will be at least a year before those troops begin to come home. Critics also say the president was very vague about who will be in this new Iraqi government.

The president himself said the names now being selected by a U.N. official should be out in public. Who will be Iraq's interim president, two interim vice presidents, the interim prime minister? Those names should be made public, Soledad, by the end of this week.

O'BRIEN: All right. John King at the White House for us this morning. John, thanks.

Georgia Republican Senator Saxby Chambliss told CNN last night that the president answered his critics, who said the administration has no plan for Iraq. Presumptive Democratic presidential nominee John Kerry disagreed, saying "The president laid out general principles, most of which we heard before. What's more important now is to turn these words into action by offering presidential leadership to the nation and to the world." Earlier this morning we were joined by Delaware Senator Joe Biden, the ranking Democrat on the Foreign Relations Committee, and I asked him if he was satisfied with what he heard from the president last night.

(BEGIN VIDEOTAPE)

SEN. JOSEPH BIDEN (D), DELAWARE: He didn't answer the question which we've been trying to get at, is when this new government takes power, do they control the actions of American troops? Do they say we can go to Fallujah or not go to Fallujah? And the bottom line is, everybody knows there is not enough security in Iraq and there is not enough help.

And one other thing is emerging. It's not just insurgents, it's not just outside terrorist. It is competition between Sunni, Shia and Kurd within Iraq that is going to be a gigantic problem. Who is going to be the referee for that like we have in Kosovo, and like we have in Afghanistan? A lot of questions unanswered.

O'BRIEN: All right. Well, let's walk through some of those unanswered questions, because the president did tackle some topics. Maybe not as thoroughly as you say you'd like to hear. For example, you've long called for more international involvement.

BIDEN: That is right.

O'BRIEN: Let's listen to a little bit of what the president had to say about that.

(BEGIN VIDEO CLIP)

BUSH: Despite past disagreements, most nations have indicated strong support for the success of a free Iraq. And I'm confident they will share in the responsibility of assuring that success.

(END VIDEO CLIP)

O'BRIEN: Why does that not go far in answering you questions about international involvement?

BIDEN: Well, I think that's great, but he didn't say who is going to send more troops, he didn't say who is going to pay more money. Now, maybe we're going to hear in the next speech that he has done what many of us have called for, that he's actually used presidential leadership, actually talked to the heads of state, actually talked to Mr. Putin, actually talked to our allies, actually talked to NATO, actually got those heads of state on the phone and gotten actual commitments.

If he's gotten more money and more troops, then I think that's very, very good. If he hasn't done that, if he hasn't personally invested himself with a sense of urgency in that, then I think it's a serious mistake.

O'BRIEN: You said you wanted a clear plan when it came to security. Here is a little of what the president had to say about security last night.

(BEGIN VIDEO CLIP)

BUSH: My direct direction, with the support of Iraqi authorities, we are accelerating our program to help train Iraqis to defend their country. A new team of senior military officers is now assessing every unit in Iraq's security forces. I've asked this team to oversee the training of a force of 260,000 Iraqi soldiers, police, and other security personnel.

(END VIDEO CLIP)

O'BRIEN: In addition to that, he said that the troop number is going to stay at 138,000 about -- for right now. How much more specific do you want him to get about things like that? Do you realistically think he's going to say, OK, here is the date for the troops to be out? I mean, he -- no one is going to name a date.

BIDEN: Oh, no, I'm not saying that. I've never said that. We shouldn't name a date.

What I'm expecting him to say is -- look, he did say later in his speech we're going to train 35,000 Iraqi army, 35,000-man Iraqi army. The fact of the matter is, all his experts have said to him, as well as to me, that will take three years to do that. He didn't say he was going to take up France and Germany to train them in Europe. He didn't say that he was going to speed up training in the Arab nations where American soldiers have trained Arab forces.

He did not do -- the 260,000 people he talks about, none of them are worth a tinker's darn. You know that. They've not been of any value to us.

We need real live troops. It's going to take three years just to get 35,000. It's a little misleading to say we're going to help train up the 260,000 Iraqis.

Later, as I said, he went on to say we're going to get 35,000-man army. What he didn't say that's going to take three years. How is he going to speed it up?

(END VIDEOTAPE)

O'BRIEN: That's Delaware Senator Joe Biden joining us a little bit earlier here on AMERICAN MORNING.

The president will have more to say about Iraq well before the handover of power. He has five more speeches on the subject all in the works.

(WEATHER REPORT)

HEMMER: Gas prices hit another record high across the country. The average price for a gallon of gas now, $2.07. It's a major pinch for motorists, but could it be worse? Tom Foreman has a check of that today from Washington. (BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): When the tourist season starts in Washington, George Mahowi's (ph) cabs fills with extra passengers, his pockets with extra money. But high gas prices this year are costing him an extra $70 a week.

(on camera): What have these prices done to your business?

UNIDENTIFIED MALE: It really hits home, because your investment is your time and your money. And seriously, when you work all day and you need a little extra gas, really, it hurts to go back to the gas station. So you might as well go home.

FOREMAN (voice-over): Or to an economist, because economists will tell you if since, say, the 1960s the cost of gas had risen as fast as everything else, we would probably be paying $3 or $4 a gallon by now. Even AAA agrees.

UNIDENTIFIED MALE: We are seeing a record level high gas prices right now. But if you factor in for inflation, the record would be in 1981, when we were paying $2.79 in today's dollars. Unfortunately, the motorist sees the $2 a gallon gasoline and he has to budget for that.

FOREMAN: It could be worse. Europeans already pay $4 to $5 a gallon. Although, AAA points out that includes a lot of taxes.

Drag racers here pay $18 a gallon for fuel and burn a gallon every half second. And that latte Americans love with their commute? That's about $30 a gallon. Maybe George has the right idea.

UNIDENTIFIED MALE: Well, I am mad, but what is the use of hitting your head against the wall?

FOREMAN: Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

HEMMER: Tom, thanks for that.

And despite the high prices, AAA expects the upcoming Memorial Day Weekend to bring record travel, with more than 30 million travelers driving at least 50 miles over the holiday weekend next weekend.

O'BRIEN: Let's go to Heidi Collins. She's got a look at some of the other stories making headlines.

Good morning again.

HEIDI COLLINS, CNN ANCHOR: Good morning once again, guys, to both of you. At 15 minutes past the hour or so, here is what's happening right now.

A car bomb explodes right in front of a Baghdad hotel, just yards from the Australian embassy. Conflicting reports on casualties. Iraqi police say at least four people were killed. But coalition officials disagree. They say five people were injured in the blast.

It looks like the top U.S. commander in Iraq may soon be on his way out. Pentagon officials say plans to replace Army Lieutenant General Ricardo Sanchez are part of the normal rotation and not a "no confidence" vote. There is speculation the Army vice chief of staff, General George Casey, is in line for the post.

Closing arguments this morning in the Terry Nicholas state murder trial. Yesterday, in McAlester, Oklahoma, prosecutors wrapped their case by saying Nichols did more to carry out the Oklahoma City bombing than Timothy McVeigh. Nichols is now serving a life sentence on federal charges. If convicted in the state trial, he could be sentenced to death.

And in sports, some NBA action to tell you about. Game two of the Eastern Conference Finals belongs to the Detroit Pistons. The Pistons edged out the Indiana Pacers 72-67 last night. Nearly setting a playoff record with 19 blocked shots, like that one. The Pistons evened out the seven-game series at one game a piece. Indiana heads to Detroit to face Pistons at home for games three and four Wednesday and friday nights.

And as promised, we're going to have some NHL hockey for you after the game tonight between Calgary and Tampa. Good stuff.

HEMMER: Are you a hockey fan?

COLLINS: I am a hockey fan, even though Minnesota, home state, like doesn't have it anymore. But that's another story entirely.

HEMMER: Make these guys happy. Thanks, Heidi.

Back to Jack again and the Question of the Day.

CAFFERTY: Summertime.

HEMMER: I would say. It's just about. Eighty-eight degrees here yesterday.

O'BRIEN: Is your mic on? Want me to get that?

CAFFERTY: I got it. But thank you for offering.

President Bush said the U.S. would tear down Abu Ghraib prison if the Iraqis approved. The military has suspended Brigadier General Janice Karpinski, who was in charge of the U.S. troops accused of abuse. And soldiers are being court-martialed.

The question is, what is the proper way to deal with the prisoner abuse scandal? Some of what you've written is as follows...

Lee in Maryland, "We should not spend one thin dime of American money to tear down the prison at Abu Ghraib. The Mexicans didn't rebuild the Alamo, the Japanese didn't redo Pearl Harbor. Let the Iraqis decide what to do with it as part of their history, just as we did with what happened on our soil."

Linda in Brooklyn: "Turn Bush out of office, fire Rumsfeld, hold the upper echelon of the military responsible, not just the lower- level troops. Tell the truth. What a novel idea."

And Debbie and Carrie from Wilmington, North Carolina: "An alternative to tearing the place down might be to get Debbie Travis or the those folks from 'Trading Spaces' to give the place a little facelift. Faux finishes and a few mirrors could turn the place around. Nothing says we're sorry we sodomized you like a nice stenciled border."

O'BRIEN: Oh my goodness.

CAFFERTY: Thank you, Debbie and Carrie.

O'BRIEN: Wow. Interesting feedback, Jack.

HEMMER: Stenciled borders.

CAFFERTY: Our viewers have ideas about these things.

O'BRIEN: Yes, clearly they do.

CAFFERTY: And they share. And we're grateful they do.

O'BRIEN: Portland, Oregon lawyer Brandon Mayfield has been cleared of any involvement in the Madrid train bombings. The FBI says it was working off a bad copy of the print found near the scene of the bombings. Here is justice correspondent, Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): In a stunning twist, the case against Oregon lawyer Brandon Mayfield has been thrown out, his name cleared of any involvement in the Madrid train bombings.

BRANDON MAYFIELD, ATTORNEY: I've been singled out and discriminated against. I feel as a Muslim.

ARENA: The government says there was no discrimination, only what officials thought was a fingerprint match.

UNIDENTIFIED FEMALE: The initial fingerprint that identified Mr. Mayfield was based on a computer match supported by the analysis of fingerprint experts at the FBI lab in Quantico, who had nothing and had never heard of Brandon Mayfield.

ARENA: The problem, according to the FBI, was that examiners were working off what officials say was a substandard copy of the print found at the scene of the bombings, not the original. When Spanish authorities last week said the print belonged to an Algerian man, the FBI sent a team to Madrid to have a look at the real McCoy.

BOB JORDAN, FBI: The FBI regrets the hardships that this matter has placed upon Mr. Mayfield and his family.

ARENA: That may not be enough for Mayfield, who was never charged in the case but held for two weeks as a material witness. He's considering legal action.

MAYFIELD: I'm, what, two or three days out of the detention center, and I'm just now starting to not shake. My blood pressure has, you know, risen, my pulse has risen, my heart hurts.

ARENA (on camera): The case may prompt changes in how the FBI does fingerprint analysis. The bureau says it is considering adopting new guidelines for examiners who are not dealing with an original print.

Kelli Arena, CNN, washington.

(END VIDEOTAPE)

HEMMER: In a moment here on AMERICAN MORNING, that chemical fire burning in Georgia, east of Atlanta. The latest in a moment. David Mattingly is at the scene. We will talk to him shortly.

O'BRIEN: Also, why do lawyers for Private First Class Lynndie England want her statements thrown out? That's ahead.

HEMMER: And an 11-year-old does not want to look like Britney Spears, and she wrote a major retailer about it. We'll explain in a moment.

(COMMERCIAL BREAK)

HEMMER: The pictures from Conyers, Georgia, absolutely stunning. This is videotape from earlier. And as we go in between aerial pictures here, we'll take you down to the street level, the highway level. Just a huge fire in Conyers, 20 miles east of Atlanta, Georgia. David Mattingly on the scene, and David joins us now by telephone.

If can you hear me, David, what do you have for us?

DAVID MATTINGLY, CNN CORRESPONDENT: Well, Bill, you're probably looking at the pictures of the aerials right now of this massive plume of smoke that's coming up from a chemical warehouse in Conyers, Georgia. That is east of Atlanta. But here, standing on the ground, it looks even bigger.

In fact, where I am, about a quarter of a mile from the burning warehouse, the plume is big enough to block out the morning sun here. So we're standing in the shade in otherwise what would be a bright, sunny day.

The chemical warehouse reportedly contains tens of thousands of chlorine products used in treating swimming pools. And that means there is chlorine product and gas, liquid and solid form, inside that warehouse. Hundreds of people have been evacuated about a mile around the warehouse at this point. Authorities say that there were numerous explosions. The last one was heard about 7:30 this morning, when a fireball erupted out of the plant.

Right now, about a quarter of the building has burned, and it could burn for at least another eight hours before it is completely put out here. The fire is spreading to buildings around the original warehouse. Evacuations are continuing in this area.

Hospitals nearby are reporting that they have treated a few people here in the area with respiratory problems, and they are gearing up just in case -- mind you, just in case -- there are more people later in the day that might need to come forward, seeking medical treatment. But, right now, we are looking at this massive cloud that is coming up out of this chemical warehouse where chlorine products are being stored.

Let's see, looking at numerous traffic helicopters around the area, they're keeping a close watch on this. They say that the plume now extends about 20 miles to the east. That is going away from the city of Atlanta, away from any major metropolitan area. So we're catching a break there.

But the winds are also keeping the plume close to the ground, and that is not good. They're hoping that the winds will slow down a little bit so the plume will gain some altitude and get off the ground.

In fact, where we're standing here, about a quarter of mile from the plant, the wind is at our back, and we still occasionally get whiffs of chlorine where we're standing. But it's very slight, sort of the odor that you would associate standing close to a swimming pool. So you can imagine, Bill...

HEMMER: We certainly can. David, take care there. David Mattingly in Conyers, Georgia. We will be back in touch with you in the next 30 minutes or spoke. A huge plume of smoke so evident in that videotape there in that live picture east of Atlanta.

In a moment, the president talks about transferring power to Iraq, but it may not be soon enough for some Iraqi leaders. More details on that in a moment.

Also, the day after the speech, a violent one in Baghdad. Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: It's 9:30 here in New York, half past the hour on this AMERICAN MORNING.

Already getting reaction from an Iraqi politician to the speech last night laying out the plan for Iraq. The country's defense minister saying today that U.S. troops will be needed for, "months rather than years." In a few minutes, we'll talk to the national security adviser for the IGC, the Iraqi Governing Council, to find out his take on this today.

O'BRIEN: Also this morning, we're talking about low rider jeans. We'll talk to an 11-year-old girl who says the pants aren't the right look for her. But she actually had to take on a major department store to get a little bit of choice in the matter.

HEMMER: Hmm, stay tuned for more there.

Half-past the hour now. Going to get back to the speech from last night.

Earlier today, here on AMERICAN MORNING, Delaware Democratic Senator Joe Biden telling us after listening the speech, he still has a lot of unanswered questions about current U.S. policy there. But what about the voters who go to the polls exactly 23 weeks from today? Judy Woodruff watched the president's speech and talked with a few of the voters last night right after that.

(BEGIN VIDEOTAPE)

BUSH: A free Iraq will always have a friend in the United States of America.

JUDY WOODRUFF, HOST, "INSIDE POLITICS" (voice-over): The first of a series of speeches on the future of Iraq through the watchful eyes of six voters. From the Republicans among them, hope.

UNIDENTIFIED FEMALE: I think he's saying that it's time and it's about time that we do let them live their own lives and start to rebuild their country the way it should be.

WOODRUFF: But from the Democrats, suspicion and lingering doubt.

RHEA SIMMONS, DEMOCRAT: I'm hearing a lot of double speak when it comes to the war. And, again, I can't help but remember that we created this situation. We are the ones who went in there without the U.N.

RAY VAN DE CASTLE, DEMOCRAT: This five-point plan is something that I would of been more encouraged by if we had heard it soon after we had attacked them.

WOODRUFF: One Democrat complained Bush used references and even chose the location for maximum political effect. But a Bush supporter in the group said the president did what he had to do.

DAVE THOMAS, REBPUBLICAN: I don't think in an election year there is anyway of avoiding politicizing a speech.

WOODRUFF: Which he pronounced a success.

THOMAS: I think he answered the questions that the critics wanted him to answer.

WOODRUFF: Judy Woodruff, CNN, Dover, Pennsylvania.

(END VIDEOTAPE)

HEMMER: Much more reaction on the president's speech from last night in a moment here.

In the meantime, I want to go back to this developing story. A massive chemical fire burning now, causing evacuations east of Atlanta, Georgia. A huge plume of smoke spreading across Rockdale County from the biolab warehouse. Again, a live picture courtesy of WAGA this hour.

Back to David Mattingly by phone in Conyers.

And David, you talked about evacuations the last time we spoke, just about five minutes ago. Also, what is the danger for these chemicals that are burning in the residences there?

MATTINGLY: Well, the danger is coming from just the inherent nature of chlorine. You know that when you go swimming and there's chlorine in the water, it irritates your eyes and can cause some respiratory irritation if you get too much of it. That's what the concern is right now.

In fact, there have been a couple of people treated at the local hospitals here in Rockdale County for some sort of respiratory ailments associated with the exposure they've had associated to this. But again, it's only been a few. The hospitals still are gearing up incase there are more people later today who might be coming forward.

There's a slight concern right now as the wind has shifted somewhat. It was -- a plume of smoke was blowing to the east. It is now shifted out over Interstate 20. That is the main thoroughfare running east and west here in this part of Georgia.

And authorities have been advising people to keep their windows up and their air conditioners off as they drive through the area. But the plume is, for the most part, up off of the ground, and it appears to be gaining in altitude as we speak right here, and that is definitely a good thing.

All morning long, the winds have been keeping it down relatively close to the ground. And so if it does get up in the air a little bit more, then the chances of more people having respiratory problems will probably be even slighter as we go through the day -- Bill.

HEMMER: All right. David, take care of yourself down there. David Mattingly by telephone in Conyers, Georgia. Back to that story in a moment.

But we want to return now to the speech last night and the five- point plan put forth by the president. President Bush did not include a timeline for getting troops out of that country, as some had hoped, but he did indicate the troops would not be there indefinitely.

(BEGIN VIDEO CLIP)

BUSH: I sent American troops to Iraq to defend our security, not to stay as an occupying power. I sent American troops to Iraq to make its people free, not to make them American. Iraqis will write their own history and find their own way. (END VIDEO CLIP)

HEMMER: President Bush from last night. Now today, reaction from Iraq in Baghdad. We're joined by Mowaffak al-Rubaie, Iraq's national security adviser, and a member of the Iraqi Governing Council.

And we appreciate your time here in speaking with us. Earlier today, the president of the Iraqi Governing Council said that proposal put forth yesterday by the U.S. and the Brits at the U.N. were less than our expectations. Do you agree with that? And if it is less, what more is needed, do you believe?

MOWAFFAK AL-RUBAIE, IRAQI GOVENRING COUNCIL: Well, my reading to the draft is good, I believe. We welcome the draft. It states very clearly the end of occupation. It states very clearly that the sovereignty of the Iraqi state will be handed over to the Iraqi interim government.

And it state also very clearly the commitment of the multinational forces. And also, it states very clearly the major role of the United Nation which is going to be played by the -- in Iraq, and the multinational force commitment. And that's through the -- Mr. President Bush's statement or speech yesterday, that he continued to committed to democracy in Iraq, to bring the Iraqi people to the world standard in economy and in democracy and in observing the human right. So I think I like the commitment from President George W. Bush.

HEMMER: Listen, also, the president last night said on June 30th the occupation will end, essentially end as we know it. How is that interpreted by the Iraqi people if, still, after the 30th of June, they're going to have 138,000 U.S. troops there trying to keep the peace and trying to keep security?

AL-RUBAIE: Well, this -- the American troops are going to be part of the multinational forces in Iraq. And Iraqi forces and new Iraqi army will be part and parcel of the command structure and coordination of the multinational forces. And according to the draft of the United Nations resolution, the multinational forces are going to help the Iraqi security forces and the major offensive against terrorism.

You have to remember that we are at the forefront of fighting global terrorism. And we -- the shape of the Iraqi security forces are not in the shape neither the level, nor the quality or the number we can fight the international terrorism on our own now.

We need to speed up the (UNINTELLIGIBLE) of our new Iraqi army. We need to also speed the process of training and recruiting the new Iraqi police and the ICDC, the Iraqi Civil Corps. But we also need to have the multinational force over the horizon to help us in defeating terrorism.

HEMMER: Quickly, the president last night said after consultations, that prison may be torn down, Abu Ghraib, west of Baghdad. Do Iraqis see that as necessary? AL-RUBAIE: I love that statement, to be quite honest with you. And I love that the Abu Ghraib prison has to be abolished or converted to a hospital or a refuge or whatever it has to be. Or it has to be converted to do a museum to remind the Iraqis of the atrocities Saddam and his gangsters have committed against the Iraqi people over 35 years.

It is a very -- it's a brilliant reminder of the crimes, horrible ruthless crimes against the Iraqi people. So I can't agree more with Mr. -- with the President Bush.

HEMMER: Thank you. Mowaffak al-Rubaie, Iraqi Governing Council, there live in Baghdad. Thank you, sir, for your time today.

Twenty minutes now before the hour. A break here. Back after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody.

Is the state of Vermont in danger from Wal-Mart? Plus, how about a DVD to go with that Big Mac and fries? It could happen. Andy's back, "Minding Your Business."

Good morning.

O'BRIEN: Hello.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Good morning. Nice to see you.

HEMMER: Nice to see you, too. A check of the markets? What, are we 12 minutes in?

SERWER: Let's do that. We are, but we're down. Hate to say it.

Another day in the doldrums here on Wall Street. Down 26 points on the Dow. The stocks moving this morning.

Krispy Kreme Doughnuts reporting that loss as anticipated because of carbs. but that stock is not moving too much because they already announced those problem.

Also, SBC settled the gentlemen's strike. We talked about that. The stock not moving too much either because, again, nothing earth- shattering going on there.

Let's talk about -- this is funny. You know, retail sales, I've heard companies talk about their sales were hurt by the weather, hurt by the war, hurt by the Super Bowl. How about this one? Hurt by "Shrek?"

OK. This is true. A retail sales group coming out this morning and saying retail sales hurt across the nation because "Shrek" took consumers away from the stores and into the movie theaters, doing $128.9 million worth of business.

News flash to retailers: most of the movie theaters are in malls, which are next to stores. Don't blame "Shrek." I don't know why you didn't have a good week last week, but I've never heard that before, blaming the ogre for weak sales.

Let's talk a little bit about this Wal-Mart story. Wal-Mart, you know, trying to put stores up across the country, running into resistance in various places. A group now putting Vermont, the entire state, on a list of endangered places, trying to keep Wal-Mart out.

The National Trust for Historic Preservation saying Vermont is an endangered place, saying Wal-Mart threatens its small-town charm. You know, you might want to ask the people in Vermont whether they want to have Wal-Marts there and go and get low prices, like the rest of the nation does. Lee Scott, the CEO of Wal-Mart, saying they are going to be opening Wal-Marts all across Europe, by the way. So let's get ready for that.

Hey, you want to talk about latest Coke?

HEMMER: I'd like to taste test.

SERWER: Taste test here?

O'BRIEN: You know I do.

SERWER: OK. This is the new Coke, C2. It's a low-carb Coke. And we like to give Soledad things to ingest. Eat, drink and be merry.

O'BRIEN: Not too much fizz.

SERWER: OK. Sorry.

O'BRIEN: It doesn't go down too well.

(CROSSTALK)

HEMMER: Oh, it's a taste test, yes?

O'BRIEN: It is.

HEMMER: I'm watching him pour it out of the can...

SERWER: Don't watch.

HEMMER: That wouldn't be much of a surprise.

SERWER: All right. It's not a blind taste test. It's a taste test.

(CROSSTALK)

O'BRIEN: And this is the?

SERWER: OK. Go.

O'BRIEN: OK, ready?

SERWER: Go, Bill.

HEMMER: How was that?

O'BRIEN: It's good.

HEMMER: Do you like that?

O'BRIEN: I like Coke. But I know what that is.

HEMMER: It's good.

SERWER: OK. Easy here. Thank you.

O'BRIEN: OK. This last one was Diet Coke.

HEMMER: You've got it.

O'BRIEN: I drink that every day.

HEMMER: Done.

O'BRIEN: I'm going to guess the middle one was the C2.

HEMMER: Oh, no, sorry.

(CROSSTALK)

SERWER: OK.

O'BRIEN: And so the first one was C2.

HEMMER: The first one was C2.

O'BRIEN: I've got to tell you, I like Diet Coke better.

SERWER: OK.

O'BRIEN: But everyone is drinking C2 because of lower carbs, right?

SERWER: Lower carbs. A new low-carb -- low-carb everything.

This news broadcast is not going to be low carb, though. We're never going to have a low-carb show here. OK?

HEMMER: Thank you, Andy.

Let's get a break here. In a moment, a lot of news to talk about in Iraq today. The latest in a moment when we come back right after this.

(COMMERCIAL BREAK) HEMMER: Welcome back, everybody. Straight away to Heidi Collins, across the room here. A lot of news again out of Iraq today.

Good morning.

COLLINS: That's certainly true. Thanks, Bill.

Another powerful car bombing in Najaf -- excuse me, in Baghdad. This time, in front of a hotel. A very violent day in baghdad. Iraqi insurgents are targeting an Iraqi police station. Shortly after the explosions, a U.S. soldier was evacuated, but it was not clear if they were involved in the incident.

Also, a car bombing in front of a baghdad hotel. I just told you about this a moment ago. About 100 yards from the Australian embassy. Iraqis say four people are dead, but coalition officials say five were only hurt.

The Army general who once oversaw U.S. prison guards at Abu Ghraib is now suspended from duty. Officials say Brigadier General Janice Karpinski is suspended from command of the 800th Military Police Brigade. Sources say it is unlikely she will be reinstated.

Karpinski insists military intelligence had been given control of the infamous prison. She has not been charged with an offense. And suspension from her command does not mean she's relieved of her duties.

An attorney for Private Lynndie England says she will ask statements made by England be thrown out, because she says England was interrogated after asking for a lawyer. England is facing charges in the Iraqi prisoner abuse scandal. Her Denver attorney says England was questioned by investigators three times, all after invoking her right to counsel.

And the attorney says England was only posing for photos when the infamous shot of her holding that leash was taken. She claims England was there visiting another soldier.

Residents in Missouri are picking up the pieces after several tornados swept through parts of the state. The twisters leveled homes and caused widespread damage. Several injuries were reported from last night's storms. But no deaths. Severe weather also hit parts of Nebraska, Kansas and Oklahoma.

HEMMER: Thanks, Heidi.

O'BRIEN: Well, still to come this morning, the president wants to tear down Abu Ghraib prison. But does everyone agree? Jack has some of your suggestions just ahead on AMERICAN MORNING.

Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back, everybody. Time to check in with Jack and the Question of the Day.

CAFFERTY: Thanks, Soledad.

The question is this: what is the proper way to deal with the prisoner abuse scandal in Iraq? President Bush said that if the Iraqis are willing to tear down Abu Ghraib prison and build a new one there -- there are courts-martial going on, presumably the chain of command will be looked at. Anyway, here's some of what you've written in that regard.

Bill in Baltimore, Maryland, says, "Not only should the soldiers involved be court-martialed, but the civilians involved should be tried in the newly-formed Iraqi courts, just as we would try any foreigner who would have the audacity to do such a thing on American soil. Only then may the rest of the world begin to believe this is an act that's not condoned and begin to forgive us."

Jeff in Spokane, "The events at Abu Ghraib almost make me ashamed that I was in the U.S. Army. It just about guarantees that we will be hated by the Muslim world for the next five generations. It's time that the phrase 'I accept full responsibility' actually mean something. Donald Rumsfeld should be fired immediately."

And Dana in Kansas, writes, "Jack, blaming a building for the prison abuse is like blaming a pencil for misspelled words. The prison should be renovated into a hospital or, better yet, a school."

Thank you for your thoughts this morning.

O'BRIEN: Great feedback today. I think a lot of people have been saying that, actually, why tear down the building when actually...

CAFFERTY: Plus, I wonder who would get the contract to build the new prison? Gee, let's think about that out loud for a minute.

HEMMER: Did you hear the member of the Iraqi Governing Council? He wants to make it into a museum to remind the Iraqis later in life and later generations about what happened there.

O'BRIEN: I think there are other things to do than to just necessarily bulldoze it and build another prison right there next to it.

HEMMER: Did you hear what Ben Wedeman said last week? He was out there about a week ago, and a woman came up to him and said, "I want to make a housing complex out of this place."

CAFFERTY: Wedeman's terrific, by the way.

O'BRIEN: Oh, yes, isn't he?

CAFFERTY: He's terrific. I like his stuff a lot.

O'BRIEN: It's great to see him back in Atlanta this morning.

CAFFERTY: Yes.

HEMMER: That's exactly right.

(WEATHER REPORT)

HEMMER: Next hour on CNN, U.S. forces in the holy Iraqi town of Najaf continue their fight against the forces of Muqtada al-Sadr. Daryn has details in a moment. That's next hour.

We're back in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: We are flat out of time. Thanks for being with us. See you tomorrow, on Wednesday. To Daryn Kagan now at the CNN Center in Atlanta.

Good morning there.

O'BRIEN: Hey, Daryn.

DARYN KAGAN, CNN ANCHOR: All right. We'll see you tomorrow, when people call it hump day, as Bill. You've got it. Thank you so much. We will see you tomorrow morning.

Good morning from CNN headquarters in Atlanta. I'm Daryn Kagan.

New developments out of Iraq today. Firefighters put out a fire from a Baghdad car bombing. Iraqi police say that four people were killed in the attack, but U.S. military officials say there were only injuries.

And in the holy city of Najaf, an explosion outside the walls of a temple has flatly damaged the building. It is not known who is responsible for that blast.

Stormy weather strikes the Midwest here in the U.S. again. Tornadoes touching down in Kansas, Oklahoma, Missouri and Nebraska. Two people were hurt when a trailer home was picked up by one twister and dropped onto a car. Heavy rains have flooded rivers in Illinois and Iowa.

A cloud estimated to be...


Aired May 25, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If they need more troops, I will send them.

(END VIDEO CLIP)

BILL HEMMER, CNN ANCHOR: Good morning. The president says the occupation of Iraq is ending soon, but sending more troops is a possibility.

A developing story in Georgia. A massive chemical fire burning right now in suburban Atlanta.

And the volatile spring weather exploding across the Midwest yet again on this AMERICAN MORNING.

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

SOLEDAD O'BRIEN, CNN ANCHOR: I love that shot. What a beautiful day it's going to be here in New York City. Welcome, everybody.

Some news making headlines this morning: President Bush says there will be difficult, even chaotic days ahead in Iraq. Last night he explained what will come next in the transfer of sovereignty. John King joins us in just a moment to go through the five-point plan. We'll also get some Democratic reaction this morning from Senator Joseph Biden.

HEMMER: Also, been a very tough month of May. Spring weather still keeping people very busy in parts of the Midwest. More tornadoes yesterday, now more flooding. We'll let you know what's happening out there today in a moment.

O'BRIEN: Also this morning, putting the high gas prices into some perspective. Tom Foreman looking at what you pay for gas now, what you really were paying 20 years ago, and just who is shelling out the most.

HEMMER: And we'll get to that also.

Jack Cafferty, good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning. President Bush last night said if Iraq wants it to, the United States will tear down the prison at Abu Ghraib and build a new prison there. Presumably, the taxpayer payers here would fund that. Symbolically, perhaps, trying to put this prisoner abuse scandal behind us. Is it enough, or what else needs to be done? AM@CNN.com is the e-mail address.

O'BRIEN: Jack, thank you very much.

CAFFERTY: You're welcome, Soledad.

O'BRIEN: And likewise. We're having a tough time. What?

CAFFERTY: Why are you giggling?

O'BRIEN: Nothing.

CAFFERTY: Nothing funny about serious business.

O'BRIEN: It is serious, and I'm just trying to move forward with my day, Jack. All right?

CAFFERTY: Yes, ma'am. That's not easy for you these days, is it, moving anywhere? I'm sorry.

O'BRIEN: Are you quite through?

CAFFERTY: Yes. I'll stop now.

O'BRIEN: OK. Then I'm moving on.

CAFFERTY: OK.

O'BRIEN: President Bush is predicting some difficult days ahead as Iraq gets closer to taking control of its own affairs at the end of June. He rolled out his five-point plan for Iraq's future last night before a military crowd in Pennsylvania. Joining us this morning with details, senior White House correspondent John King.

John, good morning.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Good morning to you, Soledad.

To hear the White House tell it, the president laid out a detailed plan last night that will have that handover of sovereignty take place in just five weeks. But the president's critics say the speech was full of generalities, no new policy proposals. And those critics say it left too many unanswered questions.

(BEGIN VIDEOTAPE)

KING (voice-over): At the Army War College, the commander in chief confronting mounting doubts about his war plan and his leadership.

BUSH: We must keep our focus. We must do our duty.

KING: The one new promise was aimed at easing the pain of the prisoner abuse scandal. BUSH: With the approval of the Iraqi government, we will demolish the Abu Ghraib prison as a fitting symbol of Iraq's new beginning.

KING: That new beginning is detailed in a new United Nations resolution the United States and Britain circulated Monday. The draft resolution calls for a sovereign interim government by June 30th and elections to pick a transitional government no later than January 2005, promises to train new Iraqi military and police forces, and in the meantime gives U.S. and other coalition troops authority to take all necessary measures to maintain security.

BUSH: I sent American troops to Iraq to defend our security, not to stay as an occupying power. I sent American troops to Iraq to make its people free, not to make them American.

KING: The nearly 140,000 U.S. troops in Iraq now will stay after the transfer of sovereignty and...

BUSH: If they need more troops, I will send them.

KING: The War College atmosphere was much more sober than the president's dramatic carrier visit a year ago to declare major combat in Iraq over. One hundred thirty-nine Americans had been killed in Iraq at that point. The death toll is nearly six times that now, and Mr. Bush's political standing has declined as doubts about his Iraq policy has mushroomed.

Forty-seven percent of Americans now approve of how Mr. Bush is handling his job, down 13 points since January and down 22 points from a year ago. This was the first of a series of speeches planned in the five weeks until the transfer of sovereignty.

(END VIDEOTAPE)

KING: And critics say the president gave no estimate at all of when U.S. troops can come home. The White House says he can't give that estimate yet, but that it will be at least a year before those troops begin to come home. Critics also say the president was very vague about who will be in this new Iraqi government.

The president himself said the names now being selected by a U.N. official should be out in public. Who will be Iraq's interim president, two interim vice presidents, the interim prime minister? Those names should be made public, Soledad, by the end of this week.

O'BRIEN: All right. John King at the White House for us this morning. John, thanks.

Georgia Republican Senator Saxby Chambliss told CNN last night that the president answered his critics, who said the administration has no plan for Iraq. Presumptive Democratic presidential nominee John Kerry disagreed, saying "The president laid out general principles, most of which we heard before. What's more important now is to turn these words into action by offering presidential leadership to the nation and to the world." Earlier this morning we were joined by Delaware Senator Joe Biden, the ranking Democrat on the Foreign Relations Committee, and I asked him if he was satisfied with what he heard from the president last night.

(BEGIN VIDEOTAPE)

SEN. JOSEPH BIDEN (D), DELAWARE: He didn't answer the question which we've been trying to get at, is when this new government takes power, do they control the actions of American troops? Do they say we can go to Fallujah or not go to Fallujah? And the bottom line is, everybody knows there is not enough security in Iraq and there is not enough help.

And one other thing is emerging. It's not just insurgents, it's not just outside terrorist. It is competition between Sunni, Shia and Kurd within Iraq that is going to be a gigantic problem. Who is going to be the referee for that like we have in Kosovo, and like we have in Afghanistan? A lot of questions unanswered.

O'BRIEN: All right. Well, let's walk through some of those unanswered questions, because the president did tackle some topics. Maybe not as thoroughly as you say you'd like to hear. For example, you've long called for more international involvement.

BIDEN: That is right.

O'BRIEN: Let's listen to a little bit of what the president had to say about that.

(BEGIN VIDEO CLIP)

BUSH: Despite past disagreements, most nations have indicated strong support for the success of a free Iraq. And I'm confident they will share in the responsibility of assuring that success.

(END VIDEO CLIP)

O'BRIEN: Why does that not go far in answering you questions about international involvement?

BIDEN: Well, I think that's great, but he didn't say who is going to send more troops, he didn't say who is going to pay more money. Now, maybe we're going to hear in the next speech that he has done what many of us have called for, that he's actually used presidential leadership, actually talked to the heads of state, actually talked to Mr. Putin, actually talked to our allies, actually talked to NATO, actually got those heads of state on the phone and gotten actual commitments.

If he's gotten more money and more troops, then I think that's very, very good. If he hasn't done that, if he hasn't personally invested himself with a sense of urgency in that, then I think it's a serious mistake.

O'BRIEN: You said you wanted a clear plan when it came to security. Here is a little of what the president had to say about security last night.

(BEGIN VIDEO CLIP)

BUSH: My direct direction, with the support of Iraqi authorities, we are accelerating our program to help train Iraqis to defend their country. A new team of senior military officers is now assessing every unit in Iraq's security forces. I've asked this team to oversee the training of a force of 260,000 Iraqi soldiers, police, and other security personnel.

(END VIDEO CLIP)

O'BRIEN: In addition to that, he said that the troop number is going to stay at 138,000 about -- for right now. How much more specific do you want him to get about things like that? Do you realistically think he's going to say, OK, here is the date for the troops to be out? I mean, he -- no one is going to name a date.

BIDEN: Oh, no, I'm not saying that. I've never said that. We shouldn't name a date.

What I'm expecting him to say is -- look, he did say later in his speech we're going to train 35,000 Iraqi army, 35,000-man Iraqi army. The fact of the matter is, all his experts have said to him, as well as to me, that will take three years to do that. He didn't say he was going to take up France and Germany to train them in Europe. He didn't say that he was going to speed up training in the Arab nations where American soldiers have trained Arab forces.

He did not do -- the 260,000 people he talks about, none of them are worth a tinker's darn. You know that. They've not been of any value to us.

We need real live troops. It's going to take three years just to get 35,000. It's a little misleading to say we're going to help train up the 260,000 Iraqis.

Later, as I said, he went on to say we're going to get 35,000-man army. What he didn't say that's going to take three years. How is he going to speed it up?

(END VIDEOTAPE)

O'BRIEN: That's Delaware Senator Joe Biden joining us a little bit earlier here on AMERICAN MORNING.

The president will have more to say about Iraq well before the handover of power. He has five more speeches on the subject all in the works.

(WEATHER REPORT)

HEMMER: Gas prices hit another record high across the country. The average price for a gallon of gas now, $2.07. It's a major pinch for motorists, but could it be worse? Tom Foreman has a check of that today from Washington. (BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): When the tourist season starts in Washington, George Mahowi's (ph) cabs fills with extra passengers, his pockets with extra money. But high gas prices this year are costing him an extra $70 a week.

(on camera): What have these prices done to your business?

UNIDENTIFIED MALE: It really hits home, because your investment is your time and your money. And seriously, when you work all day and you need a little extra gas, really, it hurts to go back to the gas station. So you might as well go home.

FOREMAN (voice-over): Or to an economist, because economists will tell you if since, say, the 1960s the cost of gas had risen as fast as everything else, we would probably be paying $3 or $4 a gallon by now. Even AAA agrees.

UNIDENTIFIED MALE: We are seeing a record level high gas prices right now. But if you factor in for inflation, the record would be in 1981, when we were paying $2.79 in today's dollars. Unfortunately, the motorist sees the $2 a gallon gasoline and he has to budget for that.

FOREMAN: It could be worse. Europeans already pay $4 to $5 a gallon. Although, AAA points out that includes a lot of taxes.

Drag racers here pay $18 a gallon for fuel and burn a gallon every half second. And that latte Americans love with their commute? That's about $30 a gallon. Maybe George has the right idea.

UNIDENTIFIED MALE: Well, I am mad, but what is the use of hitting your head against the wall?

FOREMAN: Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

HEMMER: Tom, thanks for that.

And despite the high prices, AAA expects the upcoming Memorial Day Weekend to bring record travel, with more than 30 million travelers driving at least 50 miles over the holiday weekend next weekend.

O'BRIEN: Let's go to Heidi Collins. She's got a look at some of the other stories making headlines.

Good morning again.

HEIDI COLLINS, CNN ANCHOR: Good morning once again, guys, to both of you. At 15 minutes past the hour or so, here is what's happening right now.

A car bomb explodes right in front of a Baghdad hotel, just yards from the Australian embassy. Conflicting reports on casualties. Iraqi police say at least four people were killed. But coalition officials disagree. They say five people were injured in the blast.

It looks like the top U.S. commander in Iraq may soon be on his way out. Pentagon officials say plans to replace Army Lieutenant General Ricardo Sanchez are part of the normal rotation and not a "no confidence" vote. There is speculation the Army vice chief of staff, General George Casey, is in line for the post.

Closing arguments this morning in the Terry Nicholas state murder trial. Yesterday, in McAlester, Oklahoma, prosecutors wrapped their case by saying Nichols did more to carry out the Oklahoma City bombing than Timothy McVeigh. Nichols is now serving a life sentence on federal charges. If convicted in the state trial, he could be sentenced to death.

And in sports, some NBA action to tell you about. Game two of the Eastern Conference Finals belongs to the Detroit Pistons. The Pistons edged out the Indiana Pacers 72-67 last night. Nearly setting a playoff record with 19 blocked shots, like that one. The Pistons evened out the seven-game series at one game a piece. Indiana heads to Detroit to face Pistons at home for games three and four Wednesday and friday nights.

And as promised, we're going to have some NHL hockey for you after the game tonight between Calgary and Tampa. Good stuff.

HEMMER: Are you a hockey fan?

COLLINS: I am a hockey fan, even though Minnesota, home state, like doesn't have it anymore. But that's another story entirely.

HEMMER: Make these guys happy. Thanks, Heidi.

Back to Jack again and the Question of the Day.

CAFFERTY: Summertime.

HEMMER: I would say. It's just about. Eighty-eight degrees here yesterday.

O'BRIEN: Is your mic on? Want me to get that?

CAFFERTY: I got it. But thank you for offering.

President Bush said the U.S. would tear down Abu Ghraib prison if the Iraqis approved. The military has suspended Brigadier General Janice Karpinski, who was in charge of the U.S. troops accused of abuse. And soldiers are being court-martialed.

The question is, what is the proper way to deal with the prisoner abuse scandal? Some of what you've written is as follows...

Lee in Maryland, "We should not spend one thin dime of American money to tear down the prison at Abu Ghraib. The Mexicans didn't rebuild the Alamo, the Japanese didn't redo Pearl Harbor. Let the Iraqis decide what to do with it as part of their history, just as we did with what happened on our soil."

Linda in Brooklyn: "Turn Bush out of office, fire Rumsfeld, hold the upper echelon of the military responsible, not just the lower- level troops. Tell the truth. What a novel idea."

And Debbie and Carrie from Wilmington, North Carolina: "An alternative to tearing the place down might be to get Debbie Travis or the those folks from 'Trading Spaces' to give the place a little facelift. Faux finishes and a few mirrors could turn the place around. Nothing says we're sorry we sodomized you like a nice stenciled border."

O'BRIEN: Oh my goodness.

CAFFERTY: Thank you, Debbie and Carrie.

O'BRIEN: Wow. Interesting feedback, Jack.

HEMMER: Stenciled borders.

CAFFERTY: Our viewers have ideas about these things.

O'BRIEN: Yes, clearly they do.

CAFFERTY: And they share. And we're grateful they do.

O'BRIEN: Portland, Oregon lawyer Brandon Mayfield has been cleared of any involvement in the Madrid train bombings. The FBI says it was working off a bad copy of the print found near the scene of the bombings. Here is justice correspondent, Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): In a stunning twist, the case against Oregon lawyer Brandon Mayfield has been thrown out, his name cleared of any involvement in the Madrid train bombings.

BRANDON MAYFIELD, ATTORNEY: I've been singled out and discriminated against. I feel as a Muslim.

ARENA: The government says there was no discrimination, only what officials thought was a fingerprint match.

UNIDENTIFIED FEMALE: The initial fingerprint that identified Mr. Mayfield was based on a computer match supported by the analysis of fingerprint experts at the FBI lab in Quantico, who had nothing and had never heard of Brandon Mayfield.

ARENA: The problem, according to the FBI, was that examiners were working off what officials say was a substandard copy of the print found at the scene of the bombings, not the original. When Spanish authorities last week said the print belonged to an Algerian man, the FBI sent a team to Madrid to have a look at the real McCoy.

BOB JORDAN, FBI: The FBI regrets the hardships that this matter has placed upon Mr. Mayfield and his family.

ARENA: That may not be enough for Mayfield, who was never charged in the case but held for two weeks as a material witness. He's considering legal action.

MAYFIELD: I'm, what, two or three days out of the detention center, and I'm just now starting to not shake. My blood pressure has, you know, risen, my pulse has risen, my heart hurts.

ARENA (on camera): The case may prompt changes in how the FBI does fingerprint analysis. The bureau says it is considering adopting new guidelines for examiners who are not dealing with an original print.

Kelli Arena, CNN, washington.

(END VIDEOTAPE)

HEMMER: In a moment here on AMERICAN MORNING, that chemical fire burning in Georgia, east of Atlanta. The latest in a moment. David Mattingly is at the scene. We will talk to him shortly.

O'BRIEN: Also, why do lawyers for Private First Class Lynndie England want her statements thrown out? That's ahead.

HEMMER: And an 11-year-old does not want to look like Britney Spears, and she wrote a major retailer about it. We'll explain in a moment.

(COMMERCIAL BREAK)

HEMMER: The pictures from Conyers, Georgia, absolutely stunning. This is videotape from earlier. And as we go in between aerial pictures here, we'll take you down to the street level, the highway level. Just a huge fire in Conyers, 20 miles east of Atlanta, Georgia. David Mattingly on the scene, and David joins us now by telephone.

If can you hear me, David, what do you have for us?

DAVID MATTINGLY, CNN CORRESPONDENT: Well, Bill, you're probably looking at the pictures of the aerials right now of this massive plume of smoke that's coming up from a chemical warehouse in Conyers, Georgia. That is east of Atlanta. But here, standing on the ground, it looks even bigger.

In fact, where I am, about a quarter of a mile from the burning warehouse, the plume is big enough to block out the morning sun here. So we're standing in the shade in otherwise what would be a bright, sunny day.

The chemical warehouse reportedly contains tens of thousands of chlorine products used in treating swimming pools. And that means there is chlorine product and gas, liquid and solid form, inside that warehouse. Hundreds of people have been evacuated about a mile around the warehouse at this point. Authorities say that there were numerous explosions. The last one was heard about 7:30 this morning, when a fireball erupted out of the plant.

Right now, about a quarter of the building has burned, and it could burn for at least another eight hours before it is completely put out here. The fire is spreading to buildings around the original warehouse. Evacuations are continuing in this area.

Hospitals nearby are reporting that they have treated a few people here in the area with respiratory problems, and they are gearing up just in case -- mind you, just in case -- there are more people later in the day that might need to come forward, seeking medical treatment. But, right now, we are looking at this massive cloud that is coming up out of this chemical warehouse where chlorine products are being stored.

Let's see, looking at numerous traffic helicopters around the area, they're keeping a close watch on this. They say that the plume now extends about 20 miles to the east. That is going away from the city of Atlanta, away from any major metropolitan area. So we're catching a break there.

But the winds are also keeping the plume close to the ground, and that is not good. They're hoping that the winds will slow down a little bit so the plume will gain some altitude and get off the ground.

In fact, where we're standing here, about a quarter of mile from the plant, the wind is at our back, and we still occasionally get whiffs of chlorine where we're standing. But it's very slight, sort of the odor that you would associate standing close to a swimming pool. So you can imagine, Bill...

HEMMER: We certainly can. David, take care there. David Mattingly in Conyers, Georgia. We will be back in touch with you in the next 30 minutes or spoke. A huge plume of smoke so evident in that videotape there in that live picture east of Atlanta.

In a moment, the president talks about transferring power to Iraq, but it may not be soon enough for some Iraqi leaders. More details on that in a moment.

Also, the day after the speech, a violent one in Baghdad. Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: It's 9:30 here in New York, half past the hour on this AMERICAN MORNING.

Already getting reaction from an Iraqi politician to the speech last night laying out the plan for Iraq. The country's defense minister saying today that U.S. troops will be needed for, "months rather than years." In a few minutes, we'll talk to the national security adviser for the IGC, the Iraqi Governing Council, to find out his take on this today.

O'BRIEN: Also this morning, we're talking about low rider jeans. We'll talk to an 11-year-old girl who says the pants aren't the right look for her. But she actually had to take on a major department store to get a little bit of choice in the matter.

HEMMER: Hmm, stay tuned for more there.

Half-past the hour now. Going to get back to the speech from last night.

Earlier today, here on AMERICAN MORNING, Delaware Democratic Senator Joe Biden telling us after listening the speech, he still has a lot of unanswered questions about current U.S. policy there. But what about the voters who go to the polls exactly 23 weeks from today? Judy Woodruff watched the president's speech and talked with a few of the voters last night right after that.

(BEGIN VIDEOTAPE)

BUSH: A free Iraq will always have a friend in the United States of America.

JUDY WOODRUFF, HOST, "INSIDE POLITICS" (voice-over): The first of a series of speeches on the future of Iraq through the watchful eyes of six voters. From the Republicans among them, hope.

UNIDENTIFIED FEMALE: I think he's saying that it's time and it's about time that we do let them live their own lives and start to rebuild their country the way it should be.

WOODRUFF: But from the Democrats, suspicion and lingering doubt.

RHEA SIMMONS, DEMOCRAT: I'm hearing a lot of double speak when it comes to the war. And, again, I can't help but remember that we created this situation. We are the ones who went in there without the U.N.

RAY VAN DE CASTLE, DEMOCRAT: This five-point plan is something that I would of been more encouraged by if we had heard it soon after we had attacked them.

WOODRUFF: One Democrat complained Bush used references and even chose the location for maximum political effect. But a Bush supporter in the group said the president did what he had to do.

DAVE THOMAS, REBPUBLICAN: I don't think in an election year there is anyway of avoiding politicizing a speech.

WOODRUFF: Which he pronounced a success.

THOMAS: I think he answered the questions that the critics wanted him to answer.

WOODRUFF: Judy Woodruff, CNN, Dover, Pennsylvania.

(END VIDEOTAPE)

HEMMER: Much more reaction on the president's speech from last night in a moment here.

In the meantime, I want to go back to this developing story. A massive chemical fire burning now, causing evacuations east of Atlanta, Georgia. A huge plume of smoke spreading across Rockdale County from the biolab warehouse. Again, a live picture courtesy of WAGA this hour.

Back to David Mattingly by phone in Conyers.

And David, you talked about evacuations the last time we spoke, just about five minutes ago. Also, what is the danger for these chemicals that are burning in the residences there?

MATTINGLY: Well, the danger is coming from just the inherent nature of chlorine. You know that when you go swimming and there's chlorine in the water, it irritates your eyes and can cause some respiratory irritation if you get too much of it. That's what the concern is right now.

In fact, there have been a couple of people treated at the local hospitals here in Rockdale County for some sort of respiratory ailments associated with the exposure they've had associated to this. But again, it's only been a few. The hospitals still are gearing up incase there are more people later today who might be coming forward.

There's a slight concern right now as the wind has shifted somewhat. It was -- a plume of smoke was blowing to the east. It is now shifted out over Interstate 20. That is the main thoroughfare running east and west here in this part of Georgia.

And authorities have been advising people to keep their windows up and their air conditioners off as they drive through the area. But the plume is, for the most part, up off of the ground, and it appears to be gaining in altitude as we speak right here, and that is definitely a good thing.

All morning long, the winds have been keeping it down relatively close to the ground. And so if it does get up in the air a little bit more, then the chances of more people having respiratory problems will probably be even slighter as we go through the day -- Bill.

HEMMER: All right. David, take care of yourself down there. David Mattingly by telephone in Conyers, Georgia. Back to that story in a moment.

But we want to return now to the speech last night and the five- point plan put forth by the president. President Bush did not include a timeline for getting troops out of that country, as some had hoped, but he did indicate the troops would not be there indefinitely.

(BEGIN VIDEO CLIP)

BUSH: I sent American troops to Iraq to defend our security, not to stay as an occupying power. I sent American troops to Iraq to make its people free, not to make them American. Iraqis will write their own history and find their own way. (END VIDEO CLIP)

HEMMER: President Bush from last night. Now today, reaction from Iraq in Baghdad. We're joined by Mowaffak al-Rubaie, Iraq's national security adviser, and a member of the Iraqi Governing Council.

And we appreciate your time here in speaking with us. Earlier today, the president of the Iraqi Governing Council said that proposal put forth yesterday by the U.S. and the Brits at the U.N. were less than our expectations. Do you agree with that? And if it is less, what more is needed, do you believe?

MOWAFFAK AL-RUBAIE, IRAQI GOVENRING COUNCIL: Well, my reading to the draft is good, I believe. We welcome the draft. It states very clearly the end of occupation. It states very clearly that the sovereignty of the Iraqi state will be handed over to the Iraqi interim government.

And it state also very clearly the commitment of the multinational forces. And also, it states very clearly the major role of the United Nation which is going to be played by the -- in Iraq, and the multinational force commitment. And that's through the -- Mr. President Bush's statement or speech yesterday, that he continued to committed to democracy in Iraq, to bring the Iraqi people to the world standard in economy and in democracy and in observing the human right. So I think I like the commitment from President George W. Bush.

HEMMER: Listen, also, the president last night said on June 30th the occupation will end, essentially end as we know it. How is that interpreted by the Iraqi people if, still, after the 30th of June, they're going to have 138,000 U.S. troops there trying to keep the peace and trying to keep security?

AL-RUBAIE: Well, this -- the American troops are going to be part of the multinational forces in Iraq. And Iraqi forces and new Iraqi army will be part and parcel of the command structure and coordination of the multinational forces. And according to the draft of the United Nations resolution, the multinational forces are going to help the Iraqi security forces and the major offensive against terrorism.

You have to remember that we are at the forefront of fighting global terrorism. And we -- the shape of the Iraqi security forces are not in the shape neither the level, nor the quality or the number we can fight the international terrorism on our own now.

We need to speed up the (UNINTELLIGIBLE) of our new Iraqi army. We need to also speed the process of training and recruiting the new Iraqi police and the ICDC, the Iraqi Civil Corps. But we also need to have the multinational force over the horizon to help us in defeating terrorism.

HEMMER: Quickly, the president last night said after consultations, that prison may be torn down, Abu Ghraib, west of Baghdad. Do Iraqis see that as necessary? AL-RUBAIE: I love that statement, to be quite honest with you. And I love that the Abu Ghraib prison has to be abolished or converted to a hospital or a refuge or whatever it has to be. Or it has to be converted to do a museum to remind the Iraqis of the atrocities Saddam and his gangsters have committed against the Iraqi people over 35 years.

It is a very -- it's a brilliant reminder of the crimes, horrible ruthless crimes against the Iraqi people. So I can't agree more with Mr. -- with the President Bush.

HEMMER: Thank you. Mowaffak al-Rubaie, Iraqi Governing Council, there live in Baghdad. Thank you, sir, for your time today.

Twenty minutes now before the hour. A break here. Back after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody.

Is the state of Vermont in danger from Wal-Mart? Plus, how about a DVD to go with that Big Mac and fries? It could happen. Andy's back, "Minding Your Business."

Good morning.

O'BRIEN: Hello.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Good morning. Nice to see you.

HEMMER: Nice to see you, too. A check of the markets? What, are we 12 minutes in?

SERWER: Let's do that. We are, but we're down. Hate to say it.

Another day in the doldrums here on Wall Street. Down 26 points on the Dow. The stocks moving this morning.

Krispy Kreme Doughnuts reporting that loss as anticipated because of carbs. but that stock is not moving too much because they already announced those problem.

Also, SBC settled the gentlemen's strike. We talked about that. The stock not moving too much either because, again, nothing earth- shattering going on there.

Let's talk about -- this is funny. You know, retail sales, I've heard companies talk about their sales were hurt by the weather, hurt by the war, hurt by the Super Bowl. How about this one? Hurt by "Shrek?"

OK. This is true. A retail sales group coming out this morning and saying retail sales hurt across the nation because "Shrek" took consumers away from the stores and into the movie theaters, doing $128.9 million worth of business.

News flash to retailers: most of the movie theaters are in malls, which are next to stores. Don't blame "Shrek." I don't know why you didn't have a good week last week, but I've never heard that before, blaming the ogre for weak sales.

Let's talk a little bit about this Wal-Mart story. Wal-Mart, you know, trying to put stores up across the country, running into resistance in various places. A group now putting Vermont, the entire state, on a list of endangered places, trying to keep Wal-Mart out.

The National Trust for Historic Preservation saying Vermont is an endangered place, saying Wal-Mart threatens its small-town charm. You know, you might want to ask the people in Vermont whether they want to have Wal-Marts there and go and get low prices, like the rest of the nation does. Lee Scott, the CEO of Wal-Mart, saying they are going to be opening Wal-Marts all across Europe, by the way. So let's get ready for that.

Hey, you want to talk about latest Coke?

HEMMER: I'd like to taste test.

SERWER: Taste test here?

O'BRIEN: You know I do.

SERWER: OK. This is the new Coke, C2. It's a low-carb Coke. And we like to give Soledad things to ingest. Eat, drink and be merry.

O'BRIEN: Not too much fizz.

SERWER: OK. Sorry.

O'BRIEN: It doesn't go down too well.

(CROSSTALK)

HEMMER: Oh, it's a taste test, yes?

O'BRIEN: It is.

HEMMER: I'm watching him pour it out of the can...

SERWER: Don't watch.

HEMMER: That wouldn't be much of a surprise.

SERWER: All right. It's not a blind taste test. It's a taste test.

(CROSSTALK)

O'BRIEN: And this is the?

SERWER: OK. Go.

O'BRIEN: OK, ready?

SERWER: Go, Bill.

HEMMER: How was that?

O'BRIEN: It's good.

HEMMER: Do you like that?

O'BRIEN: I like Coke. But I know what that is.

HEMMER: It's good.

SERWER: OK. Easy here. Thank you.

O'BRIEN: OK. This last one was Diet Coke.

HEMMER: You've got it.

O'BRIEN: I drink that every day.

HEMMER: Done.

O'BRIEN: I'm going to guess the middle one was the C2.

HEMMER: Oh, no, sorry.

(CROSSTALK)

SERWER: OK.

O'BRIEN: And so the first one was C2.

HEMMER: The first one was C2.

O'BRIEN: I've got to tell you, I like Diet Coke better.

SERWER: OK.

O'BRIEN: But everyone is drinking C2 because of lower carbs, right?

SERWER: Lower carbs. A new low-carb -- low-carb everything.

This news broadcast is not going to be low carb, though. We're never going to have a low-carb show here. OK?

HEMMER: Thank you, Andy.

Let's get a break here. In a moment, a lot of news to talk about in Iraq today. The latest in a moment when we come back right after this.

(COMMERCIAL BREAK) HEMMER: Welcome back, everybody. Straight away to Heidi Collins, across the room here. A lot of news again out of Iraq today.

Good morning.

COLLINS: That's certainly true. Thanks, Bill.

Another powerful car bombing in Najaf -- excuse me, in Baghdad. This time, in front of a hotel. A very violent day in baghdad. Iraqi insurgents are targeting an Iraqi police station. Shortly after the explosions, a U.S. soldier was evacuated, but it was not clear if they were involved in the incident.

Also, a car bombing in front of a baghdad hotel. I just told you about this a moment ago. About 100 yards from the Australian embassy. Iraqis say four people are dead, but coalition officials say five were only hurt.

The Army general who once oversaw U.S. prison guards at Abu Ghraib is now suspended from duty. Officials say Brigadier General Janice Karpinski is suspended from command of the 800th Military Police Brigade. Sources say it is unlikely she will be reinstated.

Karpinski insists military intelligence had been given control of the infamous prison. She has not been charged with an offense. And suspension from her command does not mean she's relieved of her duties.

An attorney for Private Lynndie England says she will ask statements made by England be thrown out, because she says England was interrogated after asking for a lawyer. England is facing charges in the Iraqi prisoner abuse scandal. Her Denver attorney says England was questioned by investigators three times, all after invoking her right to counsel.

And the attorney says England was only posing for photos when the infamous shot of her holding that leash was taken. She claims England was there visiting another soldier.

Residents in Missouri are picking up the pieces after several tornados swept through parts of the state. The twisters leveled homes and caused widespread damage. Several injuries were reported from last night's storms. But no deaths. Severe weather also hit parts of Nebraska, Kansas and Oklahoma.

HEMMER: Thanks, Heidi.

O'BRIEN: Well, still to come this morning, the president wants to tear down Abu Ghraib prison. But does everyone agree? Jack has some of your suggestions just ahead on AMERICAN MORNING.

Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back, everybody. Time to check in with Jack and the Question of the Day.

CAFFERTY: Thanks, Soledad.

The question is this: what is the proper way to deal with the prisoner abuse scandal in Iraq? President Bush said that if the Iraqis are willing to tear down Abu Ghraib prison and build a new one there -- there are courts-martial going on, presumably the chain of command will be looked at. Anyway, here's some of what you've written in that regard.

Bill in Baltimore, Maryland, says, "Not only should the soldiers involved be court-martialed, but the civilians involved should be tried in the newly-formed Iraqi courts, just as we would try any foreigner who would have the audacity to do such a thing on American soil. Only then may the rest of the world begin to believe this is an act that's not condoned and begin to forgive us."

Jeff in Spokane, "The events at Abu Ghraib almost make me ashamed that I was in the U.S. Army. It just about guarantees that we will be hated by the Muslim world for the next five generations. It's time that the phrase 'I accept full responsibility' actually mean something. Donald Rumsfeld should be fired immediately."

And Dana in Kansas, writes, "Jack, blaming a building for the prison abuse is like blaming a pencil for misspelled words. The prison should be renovated into a hospital or, better yet, a school."

Thank you for your thoughts this morning.

O'BRIEN: Great feedback today. I think a lot of people have been saying that, actually, why tear down the building when actually...

CAFFERTY: Plus, I wonder who would get the contract to build the new prison? Gee, let's think about that out loud for a minute.

HEMMER: Did you hear the member of the Iraqi Governing Council? He wants to make it into a museum to remind the Iraqis later in life and later generations about what happened there.

O'BRIEN: I think there are other things to do than to just necessarily bulldoze it and build another prison right there next to it.

HEMMER: Did you hear what Ben Wedeman said last week? He was out there about a week ago, and a woman came up to him and said, "I want to make a housing complex out of this place."

CAFFERTY: Wedeman's terrific, by the way.

O'BRIEN: Oh, yes, isn't he?

CAFFERTY: He's terrific. I like his stuff a lot.

O'BRIEN: It's great to see him back in Atlanta this morning.

CAFFERTY: Yes.

HEMMER: That's exactly right.

(WEATHER REPORT)

HEMMER: Next hour on CNN, U.S. forces in the holy Iraqi town of Najaf continue their fight against the forces of Muqtada al-Sadr. Daryn has details in a moment. That's next hour.

We're back in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: We are flat out of time. Thanks for being with us. See you tomorrow, on Wednesday. To Daryn Kagan now at the CNN Center in Atlanta.

Good morning there.

O'BRIEN: Hey, Daryn.

DARYN KAGAN, CNN ANCHOR: All right. We'll see you tomorrow, when people call it hump day, as Bill. You've got it. Thank you so much. We will see you tomorrow morning.

Good morning from CNN headquarters in Atlanta. I'm Daryn Kagan.

New developments out of Iraq today. Firefighters put out a fire from a Baghdad car bombing. Iraqi police say that four people were killed in the attack, but U.S. military officials say there were only injuries.

And in the holy city of Najaf, an explosion outside the walls of a temple has flatly damaged the building. It is not known who is responsible for that blast.

Stormy weather strikes the Midwest here in the U.S. again. Tornadoes touching down in Kansas, Oklahoma, Missouri and Nebraska. Two people were hurt when a trailer home was picked up by one twister and dropped onto a car. Heavy rains have flooded rivers in Illinois and Iowa.

A cloud estimated to be...