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Appointment of Interim Prime Minister in Iraq; Explosion Inside Green Zone; Explaining New Discounted Prescription Drug Program for Seniors

Aired June 01, 2004 - 06:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: The Iraqi Governing Council picks its new president, but it was not without controversy.
This is DAYBREAK for Tuesday, June 1.

And good morning to you.

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

Here are the latest headlines for you now.

The man who Washington wants to be president of the interim Iraqi government, Adnan Pachachi, on the left, says no thank you. So, the Iraqi Governing Council, in a decision within the last couple of hours, picks civil engineer Ghazi al-Yawer to lead the government.

Going on within the last hour or so, explosions and gunfire close to the high school green zone area, where the U.S.-led coalition has its headquarters. Wire reports say at least 10 and as many as 25 people have been killed. We take you live to Baghdad in 60 seconds.

In money news, economists fear the Saturday attack on several oil company compounds in Saudi Arabia could push oil prices to record levels. So far, U.S. crude oil futures are trading below May's $42 per barrel high.

In sports, the L.A. Lakers dumped the Minnesota Timberwolves 96- 90 to win the Western Conference finals. The Lakers will face either Detroit or Indiana for the championship.

In culture, wave to the cameras, ladies, and smile. Be sure to smile. In Quito, Ecuador, 80 women are trying to become the next Miss. Universe. The crowd, the tears, the hugs -- all that will happen later tonight -- Chad.

CHAD MYERS, CNN CORRESPONDENT: I probably won't be awake.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: It has been a wild morning in Iraq. There is a new Iraqi president, but it's not exactly who the United States wanted it to be. Close, but no.

Shortly after the announcement was made, loud explosions near the green zone.

Live to Baghdad now and Harris Whitbeck.

One of those explosions happened right behind you, Harris -- tell us about it.

HARRIS WHITBECK, CNN CORRESPONDENT: Well, Carol, we now understand that the explosion happened very near the building housing the political headquarters for the Patriotic Union of Kurdistan, one of the political parties that is represented in the Iraqi Governing Council. We understand, according to people who were at the scene, that there was some sort of celebration going on inside that building when the very, very powerful car bomb went off.

We are hearing reports of multiple deaths and injuries at that site. Again, the explosion was very loud. We could hear it and see it from where we are inside the green zone. And that explosion happened after there were several mortar rounds fired into the green zone. All of this latest violence happening as the Governing Council prepares to announce the composition of the new interim government of Iraq, which, as you know, will take office on June 30.

The president, the interim president of Iraq, as you said, Sheikh Ghazi al-Yawer, somebody the Iraqi Governing Council had supported all along, saying that they felt that he, as a very, very important tribal leader from the north of the country, could bring together the different political groups that are operating currently in Iraq -- Carol.

COSTELLO: Thank you, Harris.

I've just been monitoring -- I'm monitoring a press conference by Lakhdar Brahimi, the U.N. envoy. Supposedly he's going to announce this new interim Iraqi president. We're trying to determine if this news conference is in English or Arabic.

Is it in English?

It's in Arabic.

When we get a translator in, we'll go to that press conference live.

Don't you worry.

We're going to go back to Harris Whitbeck now to talk more about this man who has been named the new interim Iraqi president.

Harris, the United States might not be completely happy with this choice.

Why?

WHITBECK: Well, the United States and the U.N. apparently had been favoring Adnan Pachachi. He is a veteran statesman and politician here. He was foreign minister in Iraq back in the late 1960s, before the Saddam Hussein regime here. He was seen as somebody -- he was seen with a certain degree of mistrust, however, by some members of the Iraqi Governing Council, who saw him as espousing the pan-Arab nationalism, the old style pan-Arab nationalism that Saddam Hussein himself espoused. And, again, they favored Sheikh Ghazi al- Yawer as being somebody, who, being a tribal leader who spent apparently more time in Iraq as somebody who could bring together the different political organizations and groups that have cropped up since the fall of Saddam Hussein.

Now, interestingly enough, Adnan Pachachi had been offered the job of interim president and he turned it down. He turned it down, saying that he felt that the process of choosing a new interim president had not been transparent enough. He said that if the U.S. had made the outcome of its meetings with the Iraqi Governing Council more clear, that Iraq wouldn't be living the political crisis that it's currently living -- Carol.

COSTELLO: Interesting.

Harris Whitbeck live in Baghdad.

So, Sheikh Ghazi al-Yawer will be Iraq's interim president, a man who wants more control than the coalition wants to give.

So let's head live to D.C. for some reaction -- and Jennifer Davis.

Will Washington embrace this choice?

JENNIFER DAVIS, CNN CORRESPONDENT: Well, that's a very good question. It's a little early to tell at this point. It's early in the morning following the Memorial Day weekend so there has not been a lot of official notice. The one thing we do know is because this is an election year, a very important time for the president, he has said before the most important thing to him at this point is that the candidates that are chosen to lead the Iraqi Governing Council support America's choices and America's goals in that country.

COSTELLO: All right, we'll await more word from Washington this early morning.

Jennifer Davis live in D.C.

This program note for you. Saman Abdul Majid, Saddam Hussein's former translator, will be a guest this morning in the eight o'clock hour of CNN's "American Morning."

Two National Guard units are expected in Marengo, Indiana today to help the community slammed by a tornado over the weekend. Dozens of homes in the town of 800 were destroyed. One man was killed. The National Weather Service estimates the twister's winds were 170 miles per hour.

Northern and southern Kansas also hit. A swarm of about 175 tornadoes swept across several states over the weekend, as I said.

Time now for some other stories making news across America this Tuesday.

A tragic story out of Washington State. Five people hit by a freight train as they were walking over a railroad bridge. Two people were killed. A railroad official says the people were trespassing and should not have been on the Ghost Bridge over the Lewis River.

In Seattle, about 100 passengers on the famed monorail had to be evacuated after the train caught fire. Firefighters had to use ladders to reach the train. No serious injuries to report.

And it was a chicken's worst nightmare in Bellaire, Texas, after a truck carrying eggs overturned on the highway. Get this -- 30,000 pounds of eggs spilled over the roadway, leaving one big stinky mess for cleanup crews. Pressure washers and special cleaning solutions were used to try to keep down the smell.

Opening statements in the trial of Scott Peterson -- how will prosecutors make their case? Some legal analysis for you ahead.

And think you're feeling the pinch at the pump? Be glad you're not the king of the road.

And he's fired again. That guy. Kwame.

This is DAYBREAK for Tuesday, June 1.

(COMMERCIAL BREAK)

COSTELLO: Time for a little business buzz now.

Want to get price breaks on prescription drugs? Well, a new drug discount program for seniors takes effect today. But the signups have been disappointing.

So, is the new plan right for you?

Carrie Lee live from the NASDAQ market site has more word for that for you.

Did that make sense?

Good morning -- Carrie.

CARRIE LEE, CNN CORRESPONDENT: It makes sense to me, Carol. I'll explain a little more clearly.

The number of older Americans enrolling for this benefit has been disappointing. For example, AARP sent out 26,000 enrollment kits and only 400 people have signed up. Seniors complaining about the Web site, the Medicare Web site, saying it's too complicated; long lines at the 1-800 Medicare line to speak to a representative; and also people may be a little bit nervous to pick a drug card sponsor. That's because once they do, they're locked into the card they choose for a year.

But the drug sponsors can change their list of drugs and the pricing for those drugs on a weekly basis. That's something critics have been pointing out.

Now, meanwhile, the Bush administration projects that 7.3 million Medicare recipients will sign up for the cards. The administration claiming cardholders will get price breaks at anywhere between 11 and 18 percent on brand name medications, up to 60 percent on generics. But a couple of recent reports, Carol, have noted that drug price inflation has canceled out some of these discounts.

So certainly some kinks to be worked out, but today is the kick off date for the new drug card sponsor program -- back to you.

COSTELLO: Thanks for the explanation.

Carrie Lee live from the NASDAQ market site.

Your news, money, weather and sports.

It is 6:12 Eastern time.

Here's what's all new this morning.

Just a short time ago, the Iraqi Governing Council chose Sheikh Ghazi al-Yawer to become interim Iraqi president when power is transferred on June 30. The U.S.-led coalition had wanted Adnan Pachachi to lead the country, but Pachachi said no thanks.

A car bomb explodes just outside the entrance to coalition headquarters in Baghdad. Our correspondent there, Harris Whitbeck, says there are reports of multiple deaths, maybe as many as 25. Several other blasts in that area before that explosion, including at least two mortars that appeared to land inside the high security green zone.

All right, we're going to go back to that news conference in the United Nations.

Lakhdar Brahimi, who's supposedly announcing the new interim president of Iraq.

Let's listen.

LAKHDAR BRAHIMI, U.N. ENVOY: Allow me first of all to express to both of them and through them to their colleagues in the new government, my sincere congratulations and best wishes for the success of their mission.

I think that the people of Iraq will be praying all over the country for the success of their mission, which aims at starting the rebuilding of a new Iraq.

During the last few days, I have had detailed discussions with President Ghazi al-Yawer and with Dr. Allawi concerning the formation of the government. And I submitted to Dr. Allawi suggestions and recommendations we arrived at as a result of the consultations we held during three visits to Iraq. And these discussions, as you know, took place with the Governing Council, the CPA and large segments of the Iraqi people.

And now, His Excellency, President Ghazi al-Yawer, will say a few words and he will be followed by His Excellency, Dr. Iyad Allawi, who will present to you his cabinet.

Thank you very much.

GHAZI AL-YAWAR, IRAQ'S INTERIM PRESIDENT: Good afternoon, ladies and gentlemen.

It's my pleasure to stand here in front of you to express, on behalf of all Iraqis, our deepest gratitude to the United Nations, represented by U.N. General Secretary, His Excellency, Mr. Kofi Annan, and our friend, His Excellency, Mr. Lakhdar Brahimi for the great human efforts exerted for assisting Iraqis to step forward toward full sovereignty through the formation of the Iraqi interim government, which Mr. Brahimi spent a great efforts with a lot of bravery and distinguished wisdom.

We, the Iraqis, also look forward for being granted full sovereignty through a Security Council resolution, to enable us to rebuild a free, independent, democratic and federally unified homeland.

Thank you very much.

IYAD ALLAWI, PRIME MINISTER-DESIGNATE: Good afternoon, ladies and gentlemen.

I am going to lay out my vision and my government goals later today in the official ceremony.

But now really I would like to express my deepest, deepest thanks to the United Nations and the secretary general, and to his distinguished envoy, Brother Lakhdar Brahimi, for his vital role in supporting the political process in Iraq and for his unique contribution made to Iraq in these difficult times that Iraq is passing through.

After 35 years of a ruthless tyrant regime and after the liberation of Iraq by the coalition forces under the leadership of the United States, we are starting now our march towards sovereignty and democracy. And establishing the interim government in Iraq during this critical junction in history of this nation, it is with acknowledgement and deepest appreciation we thank the United Nations and especially the efforts done by Mr. L. Brahimi and his capabilities and unique experience in bringing about a positive result in Iraq.

I would read you now the members and the ministers in my cabinet. Later on we will have C.V.s distributed to you. The deputy prime minister for security affairs is Mr. Barham Saleh; minister of agriculture is Dr. Sousan Alsharifi (ph); minister of communications, Dr. Mohammed el-Hakeem (ph); minister of construction and housing, Dr. Amar Farouq al-Demnuji (ph); minister of culture, Mr. Mofid al-Jizani (ph); minister of Hassan, Mr. Shalan al-Khuzaei; minister of education, Dr. Samen Bafar (ph); minister of electricity, Dr. Ahem Samari (ph); minister of environment, Dr. Mishkat Moman (ph); minister of placement and immigration, Ms. Pascal Ishoarda (ph); minister of finance, Dr. Adil Abdel-Mahdi; minister of foreign affairs, Mr. Rashad Zibati (ph); minister of health, Dr. Alladin Herwan (ph); minister of higher education, Dr. Bahar el-Bakar (ph); minister of human rights, Dr. Baktiar Anin (ph); minister of industrial minerals, Dr. Hacham el- Hasani (ph); minister of interior, Mr. Falah Hassan; minister of water resources, Dr. Laveev Rasheed (ph); minister of justice, Dr. Malek Dohane Hassan (ph); minister of labor and social affairs, Ms. Leilah Abdel Abrev (ph); minister of oil, Mr. Thamir Ghadbhan; minister of planning, Dr. Mehdi Al-Haffav (ph); minister of public works, Mrs. Nasreen Barwadi -- Dr. Nasreen Barwadi (ph); minister of science and technology, Mr. Rashad Mendan (ph); minister of trade, Mr. Mohammed al-Jaburi (ph); minister of transportation, Mr. Loauh Sultan Al-Aris (ph); minister of youth and sports, Ali-Fayek Aban (ph); minister of state for the provinces, Judge Wial Abdel Ariv (ph); minister of state for women, Miss. Nareen Rafhman (ph); minister of state, Dr. Passan Daoud (ph); minister of state, Dr. Mano Erfman (ph); minister of state, Mr. Adnani Genavi (ph).

It is also important to acknowledge -- unfortunately, they are not with us -- that the Council, with the help of the United Nations -- have chosen two vice presidents. One of them is Mr. Abrahim Jaffrey Leshaga (ph) and the second gentleman is Dr. Rosha Shawiz (ph), two vice presidents, Elach Dektor Roshawese (ph), Walacha Dektor Ibrahim Jaffe Eleshekh Shukman (ph).

Thank you.

BRAHIMI: I don't think we will be taking questions at this stage. I think we'll be -- I will be holding a press conference at a later stage today or tomorrow.

We're terribly sorry...

COSTELLO: All right, we're going to break away right now.

You've been listening to Lakhdar Brahimi, along with Iraq's new interim prime minister and Iraq's new interim president, just announced this morning. And that was be Ghazi al-Yawer.

David Clinch is here to try to sort this all out for us.

We heard a very brief statement from the new interim president.

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Yes.

COSTELLO: But what he said was very important, as brief as it was.

CLINCH: Well, there were two things that were very important. This is the man who will be the interim president of Iraq, theoretically just a titular position...

COSTELLO: A figurehead.

CLINCH: A figurehead. But, nevertheless, important, as we've seen as the process has gone through. He stressed that he was thanking the United Nations. He himself did not mention the United States or the coalition, and he stressed that they would be pushing for a U.N. resolution for full sovereignty for Iraq, which is something he has been on the record as saying for the last few days.

COSTELLO: In fact, he wants to be in charge of security in Iraq, is that right?

CLINCH: Well, the Iraqi interim government, led by him, but also -- and, again, theoretically, the more important political position of prime minister, Mr. Allawi, who was standing on the other side of Brahimi, have said in a general sense that they want full sovereignty. At the very least, they do want control of security inside Iraq, including control of what the U.S. and coalition forces do in Iraq between now and whenever...

COSTELLO: And how likely is that to happen?

CLINCH: Well, the U.S. has said that they are prepared to continue the process of communication over security issues in Iraq with this interim government, but obviously the traditional approach from the Pentagon and the U.S. administrations has always been that the U.S. military does not take orders from anybody else. So that's still to be discussed.

But the question of full sovereignty, with 138,000 plus coalition troops -- U.S. and coalition troops in Iraq -- is something that the Governing Council and now this new interim government is pushing for; at the very least, as much power as possible.

COSTELLO: And something it is not likely to get.

CLINCH: Well, we'll see. It does not seem likely at this point. We do know that the Iraqi foreign minister, Zebari, is going back to the U.N. again. He's been there a number of times. He's going back to the U.N. today to be there over the next few days to push for this resolution giving full sovereignty. We'll see how that process goes.

But just to work backwards very quickly, you've got Allawi as prime minister and al-Yawer as president. They'll be a full ceremony later today. We'll also have stuff in the background. Pachachi said no and meanwhile car bombs in Baghdad, a very interesting day.

COSTELLO: All right, thank you, David.

We appreciate it.

CLINCH: OK.

COSTELLO: Here's what's all new in the next half hour of DAYBREAK.

The controversy continues over cloning and stem cell research. We'll tell you why after this.

(COMMERCIAL BREAK) COSTELLO: It's time, really. The Scott Peterson trial will finally begin today. And although it feels like Peterson has already been tried, a jury will hear opening statements in Redwood City, California.

Kimberly Osias is there with a preview now -- good morning.

KIMBERLY OSIAS, CNN CORRESPONDENT: Good morning to you, Carol.

As you certainly know, it has been months of meticulous jury selection and now it all boils down to six men and six women, all from very diverse backgrounds, who will eventually determine the fate of Scott Peterson.

(BEGIN VIDEOTAPE)

LAURIE LEVENSON, LOYOLA LAW SCHOOL: We have a very unusual jury. We have jurors who know the Peterson family. We have jurors who have assaulted other people. We have jurors who are married to somebody who was convicted of murder and died in prison.

OSIAS (voice-over): While they are different, they all agree on two critical legal tenets -- the presumption of innocence until proven guilt and, also, if warranted, state sanctioned death is an acceptable sentence.

The facts the prosecution and the defense agree upon are few. On December 24, 2002, 27-year-old Laci Peterson, eight months pregnant, disappeared. In April, 2003, the bodies of Peterson and her unborn son washed ashore on the San Francisco Bay, several miles from the Berkeley marina where Scott Peterson said he had been fishing Christmas Eve.

With no murder weapon and no eyewitness to the crime, experts say this case hinges on circumstantial evidence.

LEVENSON: We still don't really know all the evidence in the case. We don't know what's in those wiretaps. We don't know what was seized from Peterson's house.

OSIAS: Both sides are expected to summarize their theories of Laci Peterson's murder in opening statements.

LEVENSON: This case is a tragedy any way you look at it, because on both sides you have families that are deeply hurt.

(END VIDEOTAPE)

OSIAS: Unlike another highly publicized trial, the O.J. Simpson case, these jurors are not sequestered, so they will be able to go home and have somewhat of a semblance of normalcy, if that's possible in a trial that may go as long as six months -- Carol.

COSTELLO: Oh, you've got that right.

Kimberly Osias live in Redwood City, California this morning. Here's what's ahead on DAYBREAK.

As the presidential campaign heats up, so does the nastiness. We'll debate that issue when CNN DAYBREAK continues.

(COMMERCIAL BREAK)

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Aired June 1, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The Iraqi Governing Council picks its new president, but it was not without controversy.
This is DAYBREAK for Tuesday, June 1.

And good morning to you.

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

Here are the latest headlines for you now.

The man who Washington wants to be president of the interim Iraqi government, Adnan Pachachi, on the left, says no thank you. So, the Iraqi Governing Council, in a decision within the last couple of hours, picks civil engineer Ghazi al-Yawer to lead the government.

Going on within the last hour or so, explosions and gunfire close to the high school green zone area, where the U.S.-led coalition has its headquarters. Wire reports say at least 10 and as many as 25 people have been killed. We take you live to Baghdad in 60 seconds.

In money news, economists fear the Saturday attack on several oil company compounds in Saudi Arabia could push oil prices to record levels. So far, U.S. crude oil futures are trading below May's $42 per barrel high.

In sports, the L.A. Lakers dumped the Minnesota Timberwolves 96- 90 to win the Western Conference finals. The Lakers will face either Detroit or Indiana for the championship.

In culture, wave to the cameras, ladies, and smile. Be sure to smile. In Quito, Ecuador, 80 women are trying to become the next Miss. Universe. The crowd, the tears, the hugs -- all that will happen later tonight -- Chad.

CHAD MYERS, CNN CORRESPONDENT: I probably won't be awake.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: It has been a wild morning in Iraq. There is a new Iraqi president, but it's not exactly who the United States wanted it to be. Close, but no.

Shortly after the announcement was made, loud explosions near the green zone.

Live to Baghdad now and Harris Whitbeck.

One of those explosions happened right behind you, Harris -- tell us about it.

HARRIS WHITBECK, CNN CORRESPONDENT: Well, Carol, we now understand that the explosion happened very near the building housing the political headquarters for the Patriotic Union of Kurdistan, one of the political parties that is represented in the Iraqi Governing Council. We understand, according to people who were at the scene, that there was some sort of celebration going on inside that building when the very, very powerful car bomb went off.

We are hearing reports of multiple deaths and injuries at that site. Again, the explosion was very loud. We could hear it and see it from where we are inside the green zone. And that explosion happened after there were several mortar rounds fired into the green zone. All of this latest violence happening as the Governing Council prepares to announce the composition of the new interim government of Iraq, which, as you know, will take office on June 30.

The president, the interim president of Iraq, as you said, Sheikh Ghazi al-Yawer, somebody the Iraqi Governing Council had supported all along, saying that they felt that he, as a very, very important tribal leader from the north of the country, could bring together the different political groups that are operating currently in Iraq -- Carol.

COSTELLO: Thank you, Harris.

I've just been monitoring -- I'm monitoring a press conference by Lakhdar Brahimi, the U.N. envoy. Supposedly he's going to announce this new interim Iraqi president. We're trying to determine if this news conference is in English or Arabic.

Is it in English?

It's in Arabic.

When we get a translator in, we'll go to that press conference live.

Don't you worry.

We're going to go back to Harris Whitbeck now to talk more about this man who has been named the new interim Iraqi president.

Harris, the United States might not be completely happy with this choice.

Why?

WHITBECK: Well, the United States and the U.N. apparently had been favoring Adnan Pachachi. He is a veteran statesman and politician here. He was foreign minister in Iraq back in the late 1960s, before the Saddam Hussein regime here. He was seen as somebody -- he was seen with a certain degree of mistrust, however, by some members of the Iraqi Governing Council, who saw him as espousing the pan-Arab nationalism, the old style pan-Arab nationalism that Saddam Hussein himself espoused. And, again, they favored Sheikh Ghazi al- Yawer as being somebody, who, being a tribal leader who spent apparently more time in Iraq as somebody who could bring together the different political organizations and groups that have cropped up since the fall of Saddam Hussein.

Now, interestingly enough, Adnan Pachachi had been offered the job of interim president and he turned it down. He turned it down, saying that he felt that the process of choosing a new interim president had not been transparent enough. He said that if the U.S. had made the outcome of its meetings with the Iraqi Governing Council more clear, that Iraq wouldn't be living the political crisis that it's currently living -- Carol.

COSTELLO: Interesting.

Harris Whitbeck live in Baghdad.

So, Sheikh Ghazi al-Yawer will be Iraq's interim president, a man who wants more control than the coalition wants to give.

So let's head live to D.C. for some reaction -- and Jennifer Davis.

Will Washington embrace this choice?

JENNIFER DAVIS, CNN CORRESPONDENT: Well, that's a very good question. It's a little early to tell at this point. It's early in the morning following the Memorial Day weekend so there has not been a lot of official notice. The one thing we do know is because this is an election year, a very important time for the president, he has said before the most important thing to him at this point is that the candidates that are chosen to lead the Iraqi Governing Council support America's choices and America's goals in that country.

COSTELLO: All right, we'll await more word from Washington this early morning.

Jennifer Davis live in D.C.

This program note for you. Saman Abdul Majid, Saddam Hussein's former translator, will be a guest this morning in the eight o'clock hour of CNN's "American Morning."

Two National Guard units are expected in Marengo, Indiana today to help the community slammed by a tornado over the weekend. Dozens of homes in the town of 800 were destroyed. One man was killed. The National Weather Service estimates the twister's winds were 170 miles per hour.

Northern and southern Kansas also hit. A swarm of about 175 tornadoes swept across several states over the weekend, as I said.

Time now for some other stories making news across America this Tuesday.

A tragic story out of Washington State. Five people hit by a freight train as they were walking over a railroad bridge. Two people were killed. A railroad official says the people were trespassing and should not have been on the Ghost Bridge over the Lewis River.

In Seattle, about 100 passengers on the famed monorail had to be evacuated after the train caught fire. Firefighters had to use ladders to reach the train. No serious injuries to report.

And it was a chicken's worst nightmare in Bellaire, Texas, after a truck carrying eggs overturned on the highway. Get this -- 30,000 pounds of eggs spilled over the roadway, leaving one big stinky mess for cleanup crews. Pressure washers and special cleaning solutions were used to try to keep down the smell.

Opening statements in the trial of Scott Peterson -- how will prosecutors make their case? Some legal analysis for you ahead.

And think you're feeling the pinch at the pump? Be glad you're not the king of the road.

And he's fired again. That guy. Kwame.

This is DAYBREAK for Tuesday, June 1.

(COMMERCIAL BREAK)

COSTELLO: Time for a little business buzz now.

Want to get price breaks on prescription drugs? Well, a new drug discount program for seniors takes effect today. But the signups have been disappointing.

So, is the new plan right for you?

Carrie Lee live from the NASDAQ market site has more word for that for you.

Did that make sense?

Good morning -- Carrie.

CARRIE LEE, CNN CORRESPONDENT: It makes sense to me, Carol. I'll explain a little more clearly.

The number of older Americans enrolling for this benefit has been disappointing. For example, AARP sent out 26,000 enrollment kits and only 400 people have signed up. Seniors complaining about the Web site, the Medicare Web site, saying it's too complicated; long lines at the 1-800 Medicare line to speak to a representative; and also people may be a little bit nervous to pick a drug card sponsor. That's because once they do, they're locked into the card they choose for a year.

But the drug sponsors can change their list of drugs and the pricing for those drugs on a weekly basis. That's something critics have been pointing out.

Now, meanwhile, the Bush administration projects that 7.3 million Medicare recipients will sign up for the cards. The administration claiming cardholders will get price breaks at anywhere between 11 and 18 percent on brand name medications, up to 60 percent on generics. But a couple of recent reports, Carol, have noted that drug price inflation has canceled out some of these discounts.

So certainly some kinks to be worked out, but today is the kick off date for the new drug card sponsor program -- back to you.

COSTELLO: Thanks for the explanation.

Carrie Lee live from the NASDAQ market site.

Your news, money, weather and sports.

It is 6:12 Eastern time.

Here's what's all new this morning.

Just a short time ago, the Iraqi Governing Council chose Sheikh Ghazi al-Yawer to become interim Iraqi president when power is transferred on June 30. The U.S.-led coalition had wanted Adnan Pachachi to lead the country, but Pachachi said no thanks.

A car bomb explodes just outside the entrance to coalition headquarters in Baghdad. Our correspondent there, Harris Whitbeck, says there are reports of multiple deaths, maybe as many as 25. Several other blasts in that area before that explosion, including at least two mortars that appeared to land inside the high security green zone.

All right, we're going to go back to that news conference in the United Nations.

Lakhdar Brahimi, who's supposedly announcing the new interim president of Iraq.

Let's listen.

LAKHDAR BRAHIMI, U.N. ENVOY: Allow me first of all to express to both of them and through them to their colleagues in the new government, my sincere congratulations and best wishes for the success of their mission.

I think that the people of Iraq will be praying all over the country for the success of their mission, which aims at starting the rebuilding of a new Iraq.

During the last few days, I have had detailed discussions with President Ghazi al-Yawer and with Dr. Allawi concerning the formation of the government. And I submitted to Dr. Allawi suggestions and recommendations we arrived at as a result of the consultations we held during three visits to Iraq. And these discussions, as you know, took place with the Governing Council, the CPA and large segments of the Iraqi people.

And now, His Excellency, President Ghazi al-Yawer, will say a few words and he will be followed by His Excellency, Dr. Iyad Allawi, who will present to you his cabinet.

Thank you very much.

GHAZI AL-YAWAR, IRAQ'S INTERIM PRESIDENT: Good afternoon, ladies and gentlemen.

It's my pleasure to stand here in front of you to express, on behalf of all Iraqis, our deepest gratitude to the United Nations, represented by U.N. General Secretary, His Excellency, Mr. Kofi Annan, and our friend, His Excellency, Mr. Lakhdar Brahimi for the great human efforts exerted for assisting Iraqis to step forward toward full sovereignty through the formation of the Iraqi interim government, which Mr. Brahimi spent a great efforts with a lot of bravery and distinguished wisdom.

We, the Iraqis, also look forward for being granted full sovereignty through a Security Council resolution, to enable us to rebuild a free, independent, democratic and federally unified homeland.

Thank you very much.

IYAD ALLAWI, PRIME MINISTER-DESIGNATE: Good afternoon, ladies and gentlemen.

I am going to lay out my vision and my government goals later today in the official ceremony.

But now really I would like to express my deepest, deepest thanks to the United Nations and the secretary general, and to his distinguished envoy, Brother Lakhdar Brahimi, for his vital role in supporting the political process in Iraq and for his unique contribution made to Iraq in these difficult times that Iraq is passing through.

After 35 years of a ruthless tyrant regime and after the liberation of Iraq by the coalition forces under the leadership of the United States, we are starting now our march towards sovereignty and democracy. And establishing the interim government in Iraq during this critical junction in history of this nation, it is with acknowledgement and deepest appreciation we thank the United Nations and especially the efforts done by Mr. L. Brahimi and his capabilities and unique experience in bringing about a positive result in Iraq.

I would read you now the members and the ministers in my cabinet. Later on we will have C.V.s distributed to you. The deputy prime minister for security affairs is Mr. Barham Saleh; minister of agriculture is Dr. Sousan Alsharifi (ph); minister of communications, Dr. Mohammed el-Hakeem (ph); minister of construction and housing, Dr. Amar Farouq al-Demnuji (ph); minister of culture, Mr. Mofid al-Jizani (ph); minister of Hassan, Mr. Shalan al-Khuzaei; minister of education, Dr. Samen Bafar (ph); minister of electricity, Dr. Ahem Samari (ph); minister of environment, Dr. Mishkat Moman (ph); minister of placement and immigration, Ms. Pascal Ishoarda (ph); minister of finance, Dr. Adil Abdel-Mahdi; minister of foreign affairs, Mr. Rashad Zibati (ph); minister of health, Dr. Alladin Herwan (ph); minister of higher education, Dr. Bahar el-Bakar (ph); minister of human rights, Dr. Baktiar Anin (ph); minister of industrial minerals, Dr. Hacham el- Hasani (ph); minister of interior, Mr. Falah Hassan; minister of water resources, Dr. Laveev Rasheed (ph); minister of justice, Dr. Malek Dohane Hassan (ph); minister of labor and social affairs, Ms. Leilah Abdel Abrev (ph); minister of oil, Mr. Thamir Ghadbhan; minister of planning, Dr. Mehdi Al-Haffav (ph); minister of public works, Mrs. Nasreen Barwadi -- Dr. Nasreen Barwadi (ph); minister of science and technology, Mr. Rashad Mendan (ph); minister of trade, Mr. Mohammed al-Jaburi (ph); minister of transportation, Mr. Loauh Sultan Al-Aris (ph); minister of youth and sports, Ali-Fayek Aban (ph); minister of state for the provinces, Judge Wial Abdel Ariv (ph); minister of state for women, Miss. Nareen Rafhman (ph); minister of state, Dr. Passan Daoud (ph); minister of state, Dr. Mano Erfman (ph); minister of state, Mr. Adnani Genavi (ph).

It is also important to acknowledge -- unfortunately, they are not with us -- that the Council, with the help of the United Nations -- have chosen two vice presidents. One of them is Mr. Abrahim Jaffrey Leshaga (ph) and the second gentleman is Dr. Rosha Shawiz (ph), two vice presidents, Elach Dektor Roshawese (ph), Walacha Dektor Ibrahim Jaffe Eleshekh Shukman (ph).

Thank you.

BRAHIMI: I don't think we will be taking questions at this stage. I think we'll be -- I will be holding a press conference at a later stage today or tomorrow.

We're terribly sorry...

COSTELLO: All right, we're going to break away right now.

You've been listening to Lakhdar Brahimi, along with Iraq's new interim prime minister and Iraq's new interim president, just announced this morning. And that was be Ghazi al-Yawer.

David Clinch is here to try to sort this all out for us.

We heard a very brief statement from the new interim president.

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Yes.

COSTELLO: But what he said was very important, as brief as it was.

CLINCH: Well, there were two things that were very important. This is the man who will be the interim president of Iraq, theoretically just a titular position...

COSTELLO: A figurehead.

CLINCH: A figurehead. But, nevertheless, important, as we've seen as the process has gone through. He stressed that he was thanking the United Nations. He himself did not mention the United States or the coalition, and he stressed that they would be pushing for a U.N. resolution for full sovereignty for Iraq, which is something he has been on the record as saying for the last few days.

COSTELLO: In fact, he wants to be in charge of security in Iraq, is that right?

CLINCH: Well, the Iraqi interim government, led by him, but also -- and, again, theoretically, the more important political position of prime minister, Mr. Allawi, who was standing on the other side of Brahimi, have said in a general sense that they want full sovereignty. At the very least, they do want control of security inside Iraq, including control of what the U.S. and coalition forces do in Iraq between now and whenever...

COSTELLO: And how likely is that to happen?

CLINCH: Well, the U.S. has said that they are prepared to continue the process of communication over security issues in Iraq with this interim government, but obviously the traditional approach from the Pentagon and the U.S. administrations has always been that the U.S. military does not take orders from anybody else. So that's still to be discussed.

But the question of full sovereignty, with 138,000 plus coalition troops -- U.S. and coalition troops in Iraq -- is something that the Governing Council and now this new interim government is pushing for; at the very least, as much power as possible.

COSTELLO: And something it is not likely to get.

CLINCH: Well, we'll see. It does not seem likely at this point. We do know that the Iraqi foreign minister, Zebari, is going back to the U.N. again. He's been there a number of times. He's going back to the U.N. today to be there over the next few days to push for this resolution giving full sovereignty. We'll see how that process goes.

But just to work backwards very quickly, you've got Allawi as prime minister and al-Yawer as president. They'll be a full ceremony later today. We'll also have stuff in the background. Pachachi said no and meanwhile car bombs in Baghdad, a very interesting day.

COSTELLO: All right, thank you, David.

We appreciate it.

CLINCH: OK.

COSTELLO: Here's what's all new in the next half hour of DAYBREAK.

The controversy continues over cloning and stem cell research. We'll tell you why after this.

(COMMERCIAL BREAK) COSTELLO: It's time, really. The Scott Peterson trial will finally begin today. And although it feels like Peterson has already been tried, a jury will hear opening statements in Redwood City, California.

Kimberly Osias is there with a preview now -- good morning.

KIMBERLY OSIAS, CNN CORRESPONDENT: Good morning to you, Carol.

As you certainly know, it has been months of meticulous jury selection and now it all boils down to six men and six women, all from very diverse backgrounds, who will eventually determine the fate of Scott Peterson.

(BEGIN VIDEOTAPE)

LAURIE LEVENSON, LOYOLA LAW SCHOOL: We have a very unusual jury. We have jurors who know the Peterson family. We have jurors who have assaulted other people. We have jurors who are married to somebody who was convicted of murder and died in prison.

OSIAS (voice-over): While they are different, they all agree on two critical legal tenets -- the presumption of innocence until proven guilt and, also, if warranted, state sanctioned death is an acceptable sentence.

The facts the prosecution and the defense agree upon are few. On December 24, 2002, 27-year-old Laci Peterson, eight months pregnant, disappeared. In April, 2003, the bodies of Peterson and her unborn son washed ashore on the San Francisco Bay, several miles from the Berkeley marina where Scott Peterson said he had been fishing Christmas Eve.

With no murder weapon and no eyewitness to the crime, experts say this case hinges on circumstantial evidence.

LEVENSON: We still don't really know all the evidence in the case. We don't know what's in those wiretaps. We don't know what was seized from Peterson's house.

OSIAS: Both sides are expected to summarize their theories of Laci Peterson's murder in opening statements.

LEVENSON: This case is a tragedy any way you look at it, because on both sides you have families that are deeply hurt.

(END VIDEOTAPE)

OSIAS: Unlike another highly publicized trial, the O.J. Simpson case, these jurors are not sequestered, so they will be able to go home and have somewhat of a semblance of normalcy, if that's possible in a trial that may go as long as six months -- Carol.

COSTELLO: Oh, you've got that right.

Kimberly Osias live in Redwood City, California this morning. Here's what's ahead on DAYBREAK.

As the presidential campaign heats up, so does the nastiness. We'll debate that issue when CNN DAYBREAK continues.

(COMMERCIAL BREAK)

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