Return to Transcripts main page

American Morning

Pentagon Bars Thousands of Soldiers From Leaving Ranks; Interview With Senator Joseph Biden; CIA Leak Investigation

Aired June 03, 2004 - 09:00   ET

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

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


SOLEDAD O'BRIEN, CNN ANCHOR: U.S. troops on the attack in Kufa, trying to secure the city while the Pentagon tries to secure its fighting force.
The president taking some personal steps in the CIA leak matter incase the investigation comes to his desk.

And Scott Peterson's lawyer makes a stunning declaration about the baby his client is accused of killing.

Those stories all ahead on this AMERICAN MORNING.

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

BILL HEMMER, CNN ANCHOR: Welcome, everybody -- 9:01 here in New York. Good morning.

The headlines this hour: the Pentagon making sure it does not face a shortage of troops in Iraq and Afghanistan, putting new rules into place now that could affect thousands of men and women in uniform. Many thought they would be going home sooner rather than later. We'll get to the Pentagon in a moment. Barbara Starr has more on this.

O'BRIEN: Also this morning, we're focusing on Iraqi politician Ahmad Chalabi. He's accused of telling Iran that the U.S. cracked its secret intelligence codes. Our conversation with Senator Joseph Biden about just how damaging this might be.

HEMMER: Also, on a Thursday, David Bach is back with us today. Our personal money coach answering questions a lot of us think about putting off. Life insurance, do you have enough, how many years can you wait to get it? What type is best for you? We'll get to all those critical questions with David.

O'BRIEN: And Jack Cafferty is with us.

Hello, Jack.

JACK CAFFERTY, CNN ANCHOR: Good morning.

President Bush compared the war on terror to World War II in a speech at the Air Force Academy yesterday. Do you agree with the comparison? AM@CNN.com -- write us your thoughts.

HEMMER: A big response already, too, aren't you?

CAFFERTY: Lots of -- yes, a lot of mail.

HEMMER: Ready to go. Thank you, Jack.

Let's start this hour at the Pentagon. Some unwelcome news from there. The families of thousands of U.S. soldiers may now be affected. Those soldiers are going to be staying in the ranks longer than first expected. Barbara Starr is at the Pentagon watching this.

Barbara, what did you learn?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Bill, good morning again to you.

It is now official policy. It may not make the troops very happy, but now an Army-wide policy that troops headed for Iraq or headed for Afghanistan may not be able to retire or leave the volunteer force when they want to.

Now, what the Army has put into place is an Army-wide policy that for troops headed overseas, they may not retire or leave the service 90 days before their deployment. If they are within that 90-day window, they will have to stay, do a one-year tour of duty, and stay perhaps for 90 days after they come back. Forty-five thousand troops had already been impacted by this so-called stop loss policy, but as we say now, as of yesterday, no longer piecemeal Army-wide.

A signal officials believe is being sent here, a concern that they keep enough forces on the job and that the troops are, indeed, stretched thin so they are going to have to keep this in place. Essentially, what they want to do is make sure that combat units are fully trained, that they don't get a lot of new soldiers in, that they are full of troops that are fully combat capable without this stop loss policy, the Army says. If they didn't keep those troops in place, every time a division deployed, they'd have to find 4,000 fresh troops, and that would be a problem for unit cohesion.

So a soldier, again, might wind up staying 18 months beyond when they thought they might get out. But there's been some very interesting analysis from top Pentagon officials on just how long a soldier can stay in a combat environment.

(BEGIN VIDEO CLIP)

GEN. PETER PACE, JOINT CHIEFS OF STAFF: In all of the studies from World War II and Korea and Vietnam, indicate that at about the one-year mark, a person, an individual's personal capacity to endure combat drops off significantly.

(END VIDEO CLIP)

STARR: And now, of course, also the Pentagon looking very closely at its recruiting numbers. Are people joining up? One statistic has caused them concern. Recruiting into the Air National Guard now down more than 20 percent -- Bill. HEMMER: Barbara, thanks for that, at the Pentagon -- Soledad.

O'BRIEN: Turning now to the spying scandal involving now former ally of the U.S. and Iraq, Ahmad Chalabi. Chalabi allegedly telling an Iranian official that the U.S. had cracked the secret codes used by Iranian intelligence. But in a letter to the FBI and the attorney general's office, Chalabi's lawyers say this: "Dr. Chalabi denies all the charges which had been anonymously leaked. We therefore demand that they cease forthwith and that you order an investigation into the identity of the government sources who disclosed said investigation to the media."

The Bush administration is investigating who may have told Chalabi about the U.S. cracking Iran's secret code. Earlier on AMERICAN MORNING, we were joined by one of Chalabi's critics, Delaware Democrat Senator Joe Biden, and I asked him for his take on these allegations against Chalabi.

(BEGIN VIDEOTAPE)

SEN. JOSEPH BIDEN (D), DELAWARE: I don't know the specifics of the charge. I don't know whether they're true or not true. I do know that the State Department and the CIA have, for a long, long time, not trusted Mr. Chalabi, believed the information he has been providing us has been useful only when it's been useful to Mr. Chalabi's own political purposes, and not very useful beyond that.

So I'm reluctant to say what I don't know. I'm giving you honestly my assessment of Mr. Chalabi overall.

O'BRIEN: Give me your assessment of how big of a problem this is. I mean, it's been described as a major security breach. What does that mean exactly?

BIDEN: I think it's a big problem. I think it is a major security breach.

O'BRIEN: Meaning what?

BIDEN: Here's what it means. Up till now, we've been able to, allegedly, have access to communications from those elements within Iran, the clerical leadership, the supreme council, that has an interest very different than ours in the region. The same outfit that snuffed out the democracy movement within Iran recently, essentially disbanded the modulus, their parliament.

And it's a very useful thing, particularly to know what activity is going on inside of Iraq. Because with the Shia community in Iran and the Shia community in Iraq, one Arab, one not Arab, nonetheless, there have been close ties. A lot of people in the Shia community have been in hiding and/or out of Saddam's way in Iraq. I mean, in Iran.

So there is a lot of talk about who is on whose team. And there is going to be an incredible fight even if we get it right in Iraq among the competing factions within Iraq for leadership. And it's obviously very much in the interest of Iran to see things turn out in a way that they find most favorable, which is most likely not to be in our interests. So that's, to me, the single greatest concern, being able to access that interchange between Iranians and Iraqis who are plotting the outcome of Iraq.

(END VIDEOTAPE)

O'BRIEN: That was Senator Joe Biden earlier here on AMERICAN MORNING.

Some legal experts say that Chalabi could be prosecuted under U.S. law and that he could be vulnerable to arrest if he ever enters U.S. territory again. Chalabi's U.S. attorney, John Markham, is going to be our guest tomorrow on AMERICAN MORNING -- Bill.

HEMMER: And we get to the White House now, Soledad. Thanks for that.

President Bush has had, "discussions" with a private attorney in connection with the investigation to the leaking of the name of that CIA agent more than a year ago. Today, the president meets with the leader of Australia, then heads for a quick trip over in Europe.

To the White House and Suzanne Malveaux for more on all of this.

Good morning there.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Bill.

President Bush has had discussions with a private attorney and may retain him when it comes to that CIA leak investigation. Now, what officials are saying is that this does not mean that the president is the focus of this investigation, but rather they anticipate that he could face some questions.

(BEGIN VIDEOTAPE)

MALVEAUX (voice-over): The White House confirms President Bush has consulted a private attorney to possibly represent him in the criminal investigation into who leaked the name of a covert CIA operative last year. White House Press Secretary Scott McClellan said the president has had discussions with a private attorney recently in the event he is sought by the grand jury.

But there is no indication that President Bush is the target of the leak investigation. McClellan noted that while Mr. Bush has recently spoken to Washington attorney Jim Sharp (ph), he has not yet retained him.

The leak first appeared in a print last July that anonymous senior administration officials had exposed the identify of CIA operative Valerie Plame. Plame's husband, former Ambassador Joe Wilson, had publicly accused the president of using bogus intelligence to make the case for invading Iraq, and Wilson suspected the White House was seeking revenge. Wilson had been hired by the CIA to investigate reports that Iraq had sought uranium from Africa. Mr. Bush used that information in his 2003 state of the union speech as part of his case to go to war.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Saddam Hussein recently sought significant quantities of uranium from Africa.

MALVEAUX: Since January, a federal grand jury has been hearing testimony from administration and government officials to try to find who leaked Plame's identity, a federal crime. It has combed through thousands of pages of documents turned over by the White House and called witnesses, but returned no indictments. McClellan said the president has always encouraged everyone in the White House to cooperate with the investigation, and that would mean him, too.

(END VIDEOTAPE)

MATTHEWS: Now, clearly, the leak investigation has become a political football during this election season. The Democratic National Committee immediately released a statement, calling for President Bush to come forward with everything that he knows and to come clean with the American people -- Bill.

HEMMER: Suzanne, also, I mentioned the meeting with the Australian prime minister today. We'll carry that live a bit later this morning. Also, this trip over to Europe, give us more details on what is happening there in France, first off.

MALVEAUX: Bill, this is a critical trip for the president, of course. It really is a chance to prove his credibility here.

In the short term, what he is trying to do is win the support of a U.N. Security Council resolution for Iraqi sovereignty. In the long term here, he is trying to again build alliances, repair those relations with France, with Germany, with other counterparts who were against the war effort. And also, he is trying to convince his critics to counter that kind of criticism that says he lost much of the goodwill and the credibility from the international community because of his Iraq policy.

HEMMER: And after that, it's the Sea Island in Georgia and the G-8. Thanks, Suzanne. Suzanne Malveaux on the front lawn.

Soledad?

O'BRIEN: Let's turn now to California. Testimony resumes today in Scott Peterson's double murder trial. Defense attorney Mark Geragos hit the ground running yesterday with his opening statement, calling the state's case flimsy and circumstantial, and declaring his client "stone cold innocent." That after prosecutors painted Peterson as a liar and a cold-blooded killer.

So which side made a better first impression on the jury? CNN's legal analyst, Jeffrey Toobin -- senior legal analyst I believe we need to say. Jeff Toobin joining us with a take on that. We're like five seconds into this and already -- I mean, they have just run right out of the gate. Mark Geragos called his own client a cad but not a murderer. What do you think of that strategy? Like he's a bad guy, he obviously was cheating on his wife, but he didn't kill her.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: I they he has to make that argument. It's a little like the Kobe Bryant case. Adultery doesn't mean rape in that case. Say the defense attorneys here, adultery doesn't mean murder.

In fact, the argument he is making -- Geragos is making in the Peterson case -- is, look, he didn't care about his wife because he had an affair with Amber Frey. He didn't care about Amber Frey either. And he wasn't willing to kill his wife to do it. So it is not an appealing picture of Scott Peterson, but I think people do understand intuitively that adultery doesn't equal murder.

O'BRIEN: You can tell already from the opening statements that the timing of the baby's death and also the forensic evidence about when the baby was born, those things are going to be critical, central to the case. Is this going to be like a dueling experts...

TOOBIN: There will certainly be dueling experts on this. And it is -- look, I mean, Geragos has good arguments if he can back them up. The prosecution's theory is completely clear that she was killed, together with her unborn baby, on December 24th. Killed somehow, we don't know -- it's a problem in the prosecution case -- and thrown into San Francisco Bay.

Geragos says, no, that baby was born alive. If he can prove that through the autopsy evidence on the baby, it really does make the prosecution theory almost completely wrong.

O'BRIEN: How does Geragos, though, deal with some things like his client was found with $15,000 in cash and dyed his hair, told his best friends that it just got a little bleached in the swimming pool and that he had an I.D. that didn't belong to him, an identification card that was not him on his person? I mean, all those things seem extremely damaging, I think. And I get it's circumstantial, but if you're a jury member, you're going to say, come on, what is he covering up?

TOOBIN: Doesn't it look like he's trying to skip town with all that? But he did have explanations for all that.

He said, look, there was a media frenzy, which there was. He was trying to get away. He had his brother's I.D. because he wanted to play cheap golf in San Diego, where local residents got a discount.

I mean, you know, each piece of evidence can be refuted in some way. The problem is there's a lot of it, and maybe all of the investigations just look like, you know, inventions.

O'BRIEN: What is this connection with Martha Stewart?

TOOBIN: It's the unified theory of all scandals.

O'BRIEN: All of the trials connect to Martha.

TOOBIN: All of them come together. OK. Here you go.

The prosecution claimed that Peterson said the last time he saw his wife she was watching the Martha Stewart show, and it was about how do you make meringue. But Geragos came back, in his opening statement, and said, no, the meringue show was the 24th, the day that Peterson said he was. The prosecution had said, no, it was on the 23rd. So there is a dispute in the case about what did Martha say and when did she say it.

O'BRIEN: That's got to be easy to clarify and confirm.

TOOBIN: Well, they both played statements from Martha Stewart's show in their opening statements, and there was apparently some discussion of meringue in both the 23rd and the 24th. So poor Martha.

O'BRIEN: I tell you. Yes, dragged into another case. Who wants to be part of this case? It is going to be, I think, just a really interesting trial because there is just a lot there.

TOOBIN: And California, it's a long one.

O'BRIEN: Yes, no question about that. We know that. If history is any mark of that.

All right. Jeff Toobin, thanks, as always.

(WEATHER REPORT)

HEMMER: About 16 minutes past the hour. Now more headlines. Over to Heidi Collins and more on that. Iraq news again today.

HEIDI COLLINS, CNN ANCHOR: That's right. More Iraq news indeed.

In fact, in Iraq, there is word this morning a mortar attack injured several Iraqis near the Italian embassy in Baghdad. That is according to wire reports at this time.

Meanwhile, fighting persists in the Iraqi holy city of Kufa. The U.S. military says 30 insurgents were killed in the latest operation. The fighters are believed to be behind mortar attacks on a U.S. base.

One of the three Italian hostages in Iraq says their captors are treating them excellently. The Arab television network, Al Jazeera, aired video of the three men yesterday. It's the first time pictures were seen of the hostages in more than a month. You're looking at it now.

The three men were among four Italians taken hostage on April 12th. Al Jazeera said it received a statement from the captors who identified themselves as the Green Brigades. They're calling on Italians to protest the country's policies in Iraq. FBI Director Robert Mueller expected to face questions from lawmakers on changes being made to the agency post 9/11. He'll go before a House subcommittee later today. The FBI chief appeared with the attorney general last week to release pictures of individuals believed to be plotting against the United States.

It's time to head back into the movie theater in Kabul, the country's largest theater in Afghanistan, called the Arianna (ph). It's finally opened for business. The Taliban regime shut down the cinema in the 1990s and Arianna (ph) has completely been rebuilt with the support of the French film industry.

And a hot dog vendor in Detroit known for belting out a tune while handing out hot dogs is being asked to put a lid on it. I think he should be on "American Idol."

Some fans say he's the most entertaining thing at the Tigers' home games. Ouch. But workers who handle concessions at the stadium say they've gotten some complaints about the singing. It's not clear whether this no singing order will stand.

O'BRIEN: He doesn't sound very good.

COLLINS: I think he wasn't that bad.

CAFFERTY: What is the difference?

HEMMER: Just trying to make a buck.

CAFFERTY: So he sells hot dogs and sings. Where is this, Detroit?

HEMMER: Yes. Get a sense of humor.

O'BRIEN: I didn't think he sounded on key to me, but that's me.

COLLINS: Maybe we should book him as a guest.

HEMMER: Picky, picky, picky.

O'BRIEN: Give me my hot dog.

CAFFERTY: Maybe you pay him extra not to sing. Yes, hot dog with mustard and no songs.

HEMMER: Now you're talking like an entrepreneur.

CAFFERTY: Three dollars for that. All right.

The speech at the Air Force Academy yesterday, the graduation ceremonies, the president compared World War II to the war on terror. He talked about the similarities between the September 11th attacks and those at Pearl Harbor. The president said this is not the time for impatience or pessimism, and he said Americans must show the same courage of past generations. So we asked this morning, is the global war on terror this generation's World War II? Brian in Pittsburgh writes this: "I believe that the war on terror is more akin to the never-ending war on drugs than World War II. In World War II, there were clear-cut lines of battle, along with a sure sense of exactly who it was we were fighting."

Steven in Toronto writes: "I disagree with the president. He should be comparing the war on terror in Iraq and Afghanistan to Vietnam. Vietnam was a war that was unwinnable and exhausted the nation's finances and was unjust."

Carolyn in Cincinnati writes: "Shame on you! Of course, the two wars are to be compared. My father in World War II or my son in this war. I'm proud of them both, and for anyone to denigrate this war and make it appear less than what it is only shows their ignorance and lack of foresight."

And this letter, "World War II had Hitler, who controlled the most powerful military of the day, teamed with the Italians and the Japanese. Today we have a bunch of thugs who have no state or army and are more comparable to the Hells Angels. It's mind-boggling how the American public has allowed themselves to be manipulated."

We'll do one more batch of these.

O'BRIEN: Excellent, I think, some of the feedback.

CAFFERTY: Interesting question.

O'BRIEN: Yes. And fantastic e-mail. Great question, too.

HEMMER: And history will tell us where it fits in. To be determined.

O'BRIEN: Yes, that's true. Thank you, Jack.

CAFFERTY: You're most welcome.

O'BRIEN: Still ahead this morning, maybe you're thinking about buying life insurance. Do you really need it? We've got some advice and tips coming up.

HEMMER: Also in a moment here, sunscreen is a must when you go to the beach. But it turns out you cannot buy the best protection out there, at least in this country anyway. We'll tell you why with Sanjay.

O'BRIEN: And President Bush heads to Italy, a key ally in the Iraq war. But don't expect a warm welcome.

Those stories are all ahead as AMERICAN MORNING continues right after this short break.

(COMMERCIAL BREAK)

O'BRIEN: It's been called the foundation of your financial plan, but it often causes confusion and anxiety. We're talking about life insurance this morning, and this week's edition of "90-Second Tips" tackles the significant part of your financial life.

I recently asked our personal finance contributor, David Bach, for some important advice on the matter, like who needs it, what kind and how much? Bach is the author of the best-selling book "The Automatic Millionaire." And I said, let's start with exactly who needs to buy into the life insurance plan.

(BEGIN VIDEOTAPE)

DAVID BACH, FINANCE CONTRIBUTOR: If you are single, no kids, no family, nobody that needs money if you die, then you don't need life insurance. But basically everybody else does. Again, if you have family, if you have children, if you have a spouse, if you have a mortgage payment, you probably want to have a protection plan.

O'BRIEN: Let's walk through some of the options, because I actually -- we just did our life insurance, and I find it so confusing.

BACH: It's overwhelming, and people are scared by it.

O'BRIEN: OK. So there is term and there is whole to start with. Let's start with those two. What is term?

BACH: The key thing with term is that what you're buying is a death benefit. So you pay a specific dollar amount a month. And usually people will get what's called a level policy. They'll get a 10-year or a 15 or a 20-year policy. The monthly cost is fixed.

O'BRIEN: Now why would you go for that? I mean, after 15 years done, you have no insurance suddenly.

BACH: The reason people choose term is because it's significantly less expensive than whole life insurance. So what they're saying is, look, over the next 20 years, I know I want to have a million dollars in life insurance incase I die before my kids get to college.

O'BRIEN: Then let's talk about whole life insurance. Whole covers your whole life, I assume?

BACH: Whole life insurance is what we call cash value life insurance. It's where you're putting money into an insurance policy and part of the premium is actually building a little nest egg for you. And that money is going into an investment, which is like a CD or money market account. It's very secure.

A lot of people recommend that whole life insurance is an investment in addition to the death policy. How much death benefit do you need? That is the most important thing. What is your income and what are you covering?

O'BRIEN: All right. So how much do you need?

BACH: Well, people say there are all kinds of formulas. You need to take four times your salary. You need to take eight times your salary. You need to take 12 times your salary.

It depends. Tell me how big your mortgage is, tell me how much money you want to provide your family. Usually somewhere between 8 to 12 times your annual income is a large enough death benefit to totally protect your family. The key thing with whole life insurance is that you can borrow out the money, and you borrow that money out tax-free.

So, again, as you have greater wealth, a lot of people will say, for sophisticated investors, look at life insurance both as a death benefit but also as an investment vehicle and possibly an estate- planning vehicle. The key thing to understand with insurance is that it comes to your beneficiaries tax-free. So there is a lot of ways to use insurance. It's not simple, and also you have to make decisions on who do you buy it from.

O'BRIEN: Who do you buy it from? Because there are even ads in the paper about who you could get it from more. You could have a broker call you up on the phone or you could go to your guy, you know somebody who sells it. Who do you buy from?

BACH: I think it depends on how much you're buying and how sophisticated you are. If you're looking for term policy today, let's face it, bottom line, you can get a very cheap term policy by going online, doing a Google search, and running a bunch of different Internet company searches and finding the best price.

If you're looking at a whole life insurance policy, then realistically you're going to want some advice. And you're going to need to pay a commission for that to the person who is giving you the advice. Then I recommend talking to a professional insurance expert.

What I recommend you do when you work with a financial expert is you say, I want to understand what you're getting paid. So if I'm buying a $3 million variable life insurance policy, and I'm putting $5,000 into this policy every year, explain to me how much do you make?

That way you understand, OK, great, this person is making this much money in commissions. Then you're clear at least on what the cost is. Another thing that is really important, what is the cost to get out of the insurance policy? Make sure you know what the termination fee is if you cancel the policy.

(END VIDEOTAPE)

O'BRIEN: David Bach has his own nationally syndicated radio show. It airs every Saturday afternoon on Sirius Satellite Radio. And every Thursday you can catch David right here on AMERICAN MORNING with tips on how to improve your financial life.

Bill?

HEMMER: In a moment here, Soledad, international diplomacy now for the president from the White House to Europe this weekend. What kind of reception can the president expect? Especially in places like France. Also in a moment here, surviving summer. Some common sense tips today on making your next trip to the amusement park a safe one.

Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody -- 9:30. Good morning.

O'BRIEN: Good morning.

HEMMER: I've welcomed you back, haven't I?

O'BRIEN: Thank you. Yes.

HEMMER: Good to have you.

O'BRIEN: Thank you very much. Nice to be back.

HEMMER: In a moment here on AMERICAN MORNING, the president has an important diplomatic mission ahead of him. Boy is this big. Talking to the U.S. allies this week and this weekend about what he has planned for Iraq and the next steps for sovereignty. We'll get a report from Italy in a few moments.

Also, expect to get some live remarks from the president and the White House with the Australian president today. We'll get you there live this half-hour as well.

O'BRIEN: Also this morning, our summer safety series continues. We're looking at amusement park safety and whether blind trust is really the best way to have a good time on all those rides, or maybe there are a few precautions that are in order. That's ahead.

HEMMER: Also, a very intriguing medical story here. The most common form of cancer in America can be prevented in so many cases. Why isn't the product that works best against skin cancer or preventing it in, anyway, in sunscreens, why is that not available in this country? Sanjay has that in a moment. We'll try and get some answers for you.

O'BRIEN: All right. But first, President Bush meeting with Australia's prime minister at the White House this morning before heading to Europe for the weekend. The first stop is Italy, where Mr. Bush will meet with Pope John Paul II and with Italian prime minister Silvio Berlusconi.

The president is expected to get an enthusiastic official reception, but unofficially it may not be quite so warm. Here is Alessio Vinci in Rome.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (voice-over): Italians welcome President Bush with mixed feelings. There is gratitude for allied help liberating Italy 60 years ago, but also growing discontent towards today's unwanted war in Iraq, a conflict that so far has claimed the lives of 20 Italian soldiers and four civilians, a body count people here are still trying to absorb.

UNIDENTIFIED FEMALE: We know from recent polls that six out of 10 of the Italian public opinion thinks that we would have to withdraw by the end of June. So certainly there is the sense of new vulnerability.

VINCI: In Rome, Bush will meet two leaders with opposing views on that conflict, Prime Minister Silvio Berlusconi, who stands shoulder to shoulder with the U.S. president. "The west isn't the aggressor," the prime minister said in a recent interview. "We are defending ourselves and trying to rout out terrorists from their hideouts. That's what happened in Afghanistan and that is what Bush says is the case in Iraq."

A less enthusiastic welcome is expected at the Vatican. Pope John Paul II was a fierce opponent of military action and predicted war would bring chaos.

UNIDENTIFIED MALE: All of those warnings are now being shown to have been correct. The analysis was correct on the part of the holy father.

CROWD: Stop, stop, stop the war!

VINCI: Tens of thousands plan to attend a large antiwar protest on Friday. And security officials, who will deploy 10,000 policemen to patrol the city, are bracing for possible violence.

(on camera): President Bush will come nowhere near those demonstrators who plan to gather here in the historical Piazaa Vanezia (ph). Also home here behind me to the Tomb of the Unknown Soldier. An initial plan for the president to lay a wreath here was also scrapped because of security reasons.

(voice-over): The president will be in Italy for 36 hours, enough time to hear both praise and some criticism in a country still debating whether it was a good idea to invite him.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE)

O'BRIEN: And we've got this just in to CNN. OPEC members are announcing that, in fact, they are raising production by two million barrels a day. That starts on July 1st. Another 500,000 today will be added to that additionally. That starts on August 1st.

The question, of course, is the impact on what that will have on what you pay at the pump. There might be more, some people say, psychological impact than actual dollar value since the United States uses some 20 million barrels of oil every single day. Susan Lisovicz is going to join us with a little bit more on that in just a few moments. Also later this hour, CNN will have live coverage of the president' joint news conference with Australia's prime minister. That at 9:50 am Eastern Time.

Bill?

HEMMER: All right. As we await that, Soledad, 25 minutes now before the our hour.

If you're a fan of the roller coaster, then you know every year they seem to get bigger and faster and more thrilling. But are these mechanical marvels as safe as they should be? Already, so far this year, we've seen three ride-related deaths.

This morning, as part of our "Surviving Summer" series, some advice to you, common sense tips on how to keep that trip from turning tragic. I talked with the safety advocate Kathy Fackler this week, asking her what helped her and led her to found the group Safer Parks.

(BEGIN VIDEOTAPE)

KATHY FACKLER, SAFER PARKS: In 1998, when my younger son was five years old, he was in a bad accident on a roller coaster, and his foot was torn in half. And what concerned me, almost as much as the accident, was the lack of any kind of safety oversight or public reporting.

The accident was just kind of covered up. And it seemed to me that if something that serious could happen on a modern roller coaster for my own child, that the public wasn't getting the kind of information that they need in order to protect their own families.

HEMMER: So intimately you were involved in this issue. I want to talk about some of the tips you provided for us. Number one, dress for safety. Not quite sure what you mean by that with summertime and T-shirts, a lot of flip-flops out there. Explain, if you could.

FACKLER: Well, if you think about it, you're really going down to spend the day with industrial machinery. So you need to dress appropriately, which means have closed-toed shoes without high heels. You don't want to be tripping around machinery like that. You don't want to have any dangling necklaces or earrings or drawstrings that might get caught up in the machinery.

HEMMER: Find the ride that fits, that's advice number two. What do you mean by that, Kathy?

FACKLER: That's very important, especially with modern day machines. They're meant to fit people who are 170 pounds. Adults, for the most part.

So anyone who is on either end of that spectrum is going to be more likely to be hurt. Younger children are at highest risk for ejection and falling out of amusement rides because the restraints are made to fit adults. So you need to pick and choose and find the ride that fits your child and safely contains him or her. HEMMER: You mentioned children twice in your answer. This goes into the next issue here, number three, learn before you board. Learn before you get on.

FACKLER: It's very important that you understand how the machine works, where the load and unload points are, what kind of ride action it's going to have. And particularly if you're trying to figure out what ride is right for your child, take a look at his or her face, see what they think about it.

Some children who are very timid shouldn't be on rides that might scare them. You never want to put your child on a ride that scares him, because if he happens to be scared and does something to get himself hurt, you're going to regret it later.

HEMMER: Get off safely. Are you suggesting that people don't wait till the ride is over?

FACKLER: Well, oftentimes, they're just too excited and they want to go off on another ride. Oftentimes, for young children, especially, it can be quite confusing.

Some rides will stop temporarily before the unloading point. And a 5-year-old has no idea what the difference is between a permanent stop and a temporary stop. So you need to be able to teach them where the unloading point is and make sure that they stay safely inside.

HEMMER: Overall, Kathy, do you think the amusement parks are getting safer year by year or not?

FACKLER: I think that amusement parks are paying an awful lot of attention to safety. And I think as patrons now, it's our job to kind of meet them halfway and learn how to use the equipment safely.

(END VIDEOTAPE)

HEMMER: Kathy Fackler earlier this week. For more safety tips and information, log on to her Web site, saferparks.org, online for you right now.

Also, tomorrow, final part of our series "Surviving Summer." We'll tell you about barbecuing safely. Tips to know.

Soledad?

O'BRIEN: Still to come this morning, Dr. Sanjay Gupta stops by to tell us why the best sunscreen in the world isn't available to us here in the U.S.

Also ahead, the Red Planet is ready for its close-up. We've got more amazing pictures as AMERICAN MORNING continues.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. The sunshine coming through here in Manhattan. Just appropriate for this next segment. The harmful effects of the sun have our attention today. As you generously apply that sunscreen, think about this prospect: the best protection against the sun is not even available in this country. Sanjay explains at the CNN center.

What gives, Sanjay? Good morning.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, Bill.

Yes, most people get the importance of sunscreen. But even I was surprised to learn that one of the best ingredients, something known as mexarel (ph), not yet available in the United States. Available primarily in Canada, Europe, Mexico, South America and Australia.

What gives is that most sunscreens, you go to your store, you buy it over the counter, or just buy it from the counter somewhere. But this is actually a prescription product and has not yet been FDA approved.

The reason people are very excited about this product that is, again, not yet available here, is that doctors believe it is two times better at protecting against UVA rays. Again, not available here in the United States. Loreal, a company seeking FDA approval. European studies have already studied this product, finding that it's pretty safe and effective.

Now, doctors are always going to advocate sunscreen usage, especially when you're outside in the sun for a long time. But this product, a lot of people are getting excited about it and they want it approved here in the United States before too long -- Bill.

HEMMER: Short of that, though, why doesn't any sunscreen in the U.S. have something that's even comparable?

GUPTA: You know -- good question. Again, I was sort of surprised by this as well. It turns out it's sort of a historical question.

For a long time, it was believed that UVB rays were the most harmful rays. And, therefore, a lot of the sunscreen products that you see today are actually focused on these UVB rays. The UVB rays, incidentally, most people know, most intense midday. They're the ones that cause sunburns, cause wrinkles and cause skin cancer.

It was years later that people started to recognize the importance of UVA rays as well. This is the other kind. About 90 percent of radiation, most intense in the early morning and the afternoon.

This is the stuff that can penetrate glass, like when you're driving in your car, cause wrinkles, cause skin cancer, weaken your immune system. So as doctors and researchers learn more about UVA rays, they're going to make products that protect as well against both.

HEMMER: And as you mentioned, mexarel (ph). If people are looking for the right product, what do they need to look at on the label? What products, what ingredients are important?

GUPTA: It's still important to use sunscreen. There are some important things to look for. SPF 15 or greater, look for UVA protection, specific products, parsal1789 (ph) or avobenzone (ph). Those are the ingredients to look for. UVB protection: zinc oxide. That's the colorful stuff you put on your nose sometimes. Titanium dioxide. And remember, broad spectrum means nothing. You've got to reapply the stuff. Even if it's SPF of 900, you've still got to reapply it or it won't work -- Bill.

HEMMER: Thank you, Sanjay. And again, good to have you back.

GUPTA: Thanks.

HEMMER: Sanjay Gupta at the CNN Center.

In a moment here, Disney movies usually have a happy ending. We know that. But does the same hold true for one particular relationship with a very important partner? We'll get to that.

Back in a moment here after this.

(COMMERCIAL BREAK)

O'BRIEN: It's 46 minutes past the hour now. It's time for a look at some of the other stories now that are making headlines today with Heidi Collins.

Good morning to you.

COLLINS: Good morning to you guys as well. And good morning to you, everybody.

President Bush meeting with an ally of the war in Iraq. The president hosting Australia's prime minister, John Howard, before taking off for Europe. Mr. Bush will begin the European trip in Rome, where he'll meet with Italian leader Silvio Berlusconi and the pope. He'll then attend D-Day ceremonies in Normandy before heading to the G-8 summit, which begins next week.

A joint news conference with President Bush and Prime Minister Howard is set to begin shortly in the Rose Garden. Of course we will have live coverage of that event for you.

Meanwhile, on the campaign trail, Democratic presidential candidate John Kerry attacking Bush on Iraq. Senator Kerry expected to deliver a speech at the Truman Presidential Library in Missouri, saying the lack of troops has complicated the mission of stabilizing Iraq. Kerry is on an 11-day campaign blitz, laying out his national security plans.

In California, Scott Peterson's attorney says his client is, "stone cold innocent." The defense accused police of failing to pursue evidence that would have led them to the real killer or killers. The first of hundreds of witnesses took the stand yesterday. Scott Peterson is accused of killing his wife, Laci, and their unborn son. Testimony there continues today.

NASA revealing new pictures from its extended Mars mission. The Opportunity Rover has been driving around the southern rim of what's called the Endurance Crater, seen here. Scientists say there are a number of incredible rock formations, but NASA says its still deciding whether to risk a trip inside the crater. Pretty steep.

And some neighbors and city officials in Providence, Rhode Island, don't like their neighborhood ape. Everybody has a neighborhood ape, right? Well, Val, the 400-pound inflatable gorilla, has been a fixture on Lloyd Morris' (ph) lawn, but when he was used to advertise a flea market, neighbors said no way. The city is now threatening a fine of $100 a day. Mr. Morris (ph) plans to fight the fines and has asked the ACLU to help him. That makes perfect sense doesn't it?

HEMMER: Those neighbors need better fences.

COLLINS: Or something ...

HEMMER: Thank you, Heidi.

Getting reaction now to this OPEC decision that Soledad talked about a short time ago. Susan Lisovicz working for Andy Serwer today.

The markets are watching this closely, too.

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Yes. The three major averages right now are down.

OPEC, as expected, increasing production, two million barrels per day. And as you know, Bill, and have told me, the U.S. uses on a daily basis 20 million barrels a day. We've seen oil trading higher overseas.

Other economic news out today, weekly jobless claims. A forerunner to tomorrow's employment report down. The four-week average is down. That's good.

We also got some retail sales for the month of May. Wal-Mart, the world's biggest retailer, coming in well above estimates, nearly 6 percent, despite the fact that Wal-Mart says that higher price of oil eats up $7 per week in disposable income.

So the economic news is pretty good, been a quiet week so far. The catalyst this week, oil, the higher price of oil. And interest rates, which will gauge better tomorrow.

HEMMER: Any coincidence that Andy Serwer is in Bentonville, Arkansas, working on a piece for Fortune Magazine and here it is Wal- Mart is in the news?

LISOVICZ: Always in the news.

HEMMER: That's so true. A million employees around the world. Michael Eisner and Disney and Pixar, are they going to be able to settle this dispute that they've got going here?

LISOVICZ: Well, certainly Michael Eisner and Disney want this agreement with Pixar signed, sealed and delivered. Why? Because Pixar is the Smarty Jones of animation.

Think about it. Every picture that Pixar has put out, whether it's "Finding Nemo," last year's blockbuster, "Monsters," or "Toy Story," has been an enormous success.

It's a tough year for Disney, whether it's the shareholder revolt, whether it's the hostile bid. Eisner says he is still optimistic that that deal could get back on track, but he says no talks are under way right now. However, he's encouraged by the fact that Pixar hasn't been talking to anyone else.

HEMMER: It's a great comparison, too, by the way.

LISOVICZ: Smarty Jones...

HEMMER: Smarty Jones, Pixar, the little guy.

LISOVICZ: Yes.

O'BRIEN: All right. Susan, thanks.

LISOVICZ: My pleasure.

HEMMER: Good to have you here.

I want to get you to the White House real quick. Watching the camera here. The British -- or rather the Australian prime minister, excuse me, slip of the tongue -- meeting with President Bush. And we do expect a statement here.

Australia one of the firm partners for the White House so far in the war on terror. And all this preceding the president's trip to Europe. That will get under way as soon as this statement gets concluded today in the Rose Garden.

O'BRIEN: And, of course, firm partner, but Australia has actually ponied up just 850 troops, which some people say, for such a staunch ally, is sort of low as the figures go. The president is expected after he does this joint conference. We'll hear from -- oh, here they come.

That is, of course, John Howard. He's the Australian prime minister on your left here . And President Bush coming out to make a joint statement. Let's listen in.

(INTERRUPTED BY LIVE EVENT)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Good morning. Thanks for coming.

Couple of opening statements and we'll answer two questions from each side.

It's my honor to welcome back to the White House my friend and our ally Prime Minister John Howard. He is a close friend of mine. I appreciate the frequent discussions we have. I value his advice. I appreciate his clear vision.

Our two nations were allies in every major conflict of the last century. We've each lost citizens in the first war of the new century.

I will never forget standing with the prime minister on September the 10th, 2001, the day before the world changed forever.

Americans will never forget the vicious attack in Bali which claimed the lives of dozens of innocent Australians.

Today, Australians and Americans are standing together on the front lines of freedom.

As members of the common coalition, our two nations helped to free the people of Afghanistan and Iraq from the grip of tyranny. Today, we are working together to help the Afghan and Iraqi people build free societies and prevent tyranny's return.

Today, the prime minister and I discussed our coalition's progress in Iraq. The country took a major step two days ago when the new interim government was named. That government will assume full sovereignty later this month.

Our coalition will remain in Iraq to help them along the path of freedom.

The new Iraqi government's foremost task will be to prepare Iraq for a national election no later than January of next year and to work with our coalition to provide the security that'll make that election possible.

A sovereign Iraq deserves the full support of the international community as it works to establish a representative and freely elected system of government in the months ahead.

We're working toward a new Security Council resolution that will express international support for Iraq's interim government, reaffirm the world's security commitment to the Iraqi people, and encourage other U.N. members to join in the effort of building a free Iraq.

BUSH: I appreciated the prime minister's advice and support for the ongoing process.

Today, I'll leave for Europe and then we'll host the G-8 summit.

I will discuss -- continue to discuss with world leaders our common responsibility to help the new government of Iraq and our common opportunity to help to advance the momentum of freedom in the broader Middle East. Freedom must succeed in Iraq. In the long run, the defeat of terror requires the triumph of hope. A free Iraq rising in the heart of the Middle East will show the people of that region a clear alternative to the bitterness that feeds terror.

Freedom is the true foundation of stability, prosperity and peace. By working for freedom in the Middle East, we make America, Australia and the world safer.

The United States and Australia are committed to the principles of human dignity. Today, I assured the prime minister that my nation will conduct a full accounting of the cruel and disgraceful abuse of Iraqi detainees. He strongly reflected his government's and the Australian people's desires to make sure that the Australians being held in Guantanamo are not only treated fairly, but their cases are brought to finality.

And I appreciated your candid discussion, Mr. Prime Minister.

We also, of course, discussed issues that affect our economies. Just last month, our two nations signed an important free trade agreement that would eliminate nearly all tariffs on manufactured goods, open international markets and deepen our strong economic ties.

This agreement is good for both countries, and our Congress and the Australian parliament should ratify the free trade agreement as soon as possible. I assured the prime minister that I'll work with leadership in the Congress -- in our Congress to move this agreement forward.

Australia and the United States have never been closer. Our closeness is based on a shared belief in the power of freedom and democracy to change lives.

As the prime minister said, the war on terror is not a contest of civilization, it is a contest of convictions. Our victory hinges on the free world's willingness to protect and encourage democratic values.

I look forward to seeing the prime minister in France later this week as we commemorate the Normandy landings. It will be a fitting time to remember our partnerships in past wars of freedom, as well as the sacrifices we have made together in our current struggle.

Mr. Prime Minister, welcome.

JOHN HOWARD, PRIME MINISTER OF AUSTRALIA: Thank you, Mr. President.

May I express to you personally and to your wife, Laura, and to the members of your administration, my gratitude for the very warm welcome that you've extended to me and my wife and the other members of my party?

HOWARD: You reminded me, Mr. President, that the first occasion on which we met in our respective positions was indeed the 10th of September, 2001, at the naval dockyard not far from here and then we later continued our discussions at the White House.

Since then, we have worked together not only as leaders of two countries that share the values of democracy, share the values of aspirational people who believe in economic achievement and individual liberty, but also work together very closely in the war against terror.

We continue to work closely with you and share your aspirations for a free and democratic Iraq.

The establishment of the Iraqi interim government is a major step forward. It is a light to the future so far as Iraq is concerned. It is a visible demonstration of the willingness of Iraqi leaders to stand before their people and to show leadership.

The Western world, the countries of the free world have a lot at stake in relation to Iraq. If the democratic future of Iraq can be achieved, that will have beneficial consequences not only in Iraq, but it will also be a wonderful demonstration in the Middle East and around the world that democracy is not something which is confined to countries that have historically enjoyed it.

I regard that is something of an arrogant attitude on behalf of those who think that in some way democracy cannot be extended to countries that haven't regularly enjoyed it over past decades.

In recent weeks, the news out of Iraq has not been as positive as we would of liked. And the reason for that are understood. But that has not altered Australia's view.

HOWARD: We will keep a presence in Iraq. We will maintain a presence in Iraq until the job assigned to the individual force elements of the ADF have been completed.

This is not a time -- it is the worst time imaginable for allies to be showing any weakness in relation to the pursuit of our goals in Iraq. And I express my strong support for the leadership that the president has continued to display, particularly through some of the more difficult aspects of recent weeks.

We did take the opportunity of canvassing the free trade agreement, and I share very much the president's hope that the legislative processes is in both of our countries can be disposed of as soon as possible.

From Australia's point of view, this is a great opportunity to link our strong economy with the strongest economy the world has ever seen. The economic relationship between Australia and the United States can only get better in so many areas. And I had the opportunity in California of discussing growing energy links between our two countries.

I welcome the assurances the president has given me regarding the proper treatment of the two Australian detainees in Guantanamo Bay.

I also want to take this opportunity of emphasizing that the relationship between our two countries, which goes back a long way, to which the president referred, is very much a relationship which is built on shared values. We are both countries that treasure the democratic tradition. We are both countries that treasure individual freedom. We are both countries that believe in individual effort and reward for that effort.

Ours is a society, as is the United States, that encourages people to work hard and seek reward for that hard work and, providing they pay their fair share of tax, to keep what they earn and to build on it and to invest for the future. Unless you have an aspirational society built on those principles, economic progress cannot be achieved.

We have been through, as nations, many struggles together. As the president said, we've been engaged together in every major conflict beginning in World War I.

But the thing that binds us together more than anything else is a common belief in certain fundamental values. And for me, the greatest opportunity that an occasion such as this presents is to reaffirm that common commitment.

We will differ. We will have changed emphasis.

HOWARD: We will not agree on everything. But at the end of the day, if you share values in common, the relationship between two nations will always be sure, will always be predictable and above all will be enduring.

BUSH; Thanks, John.

QUESTION: Mr. President, why have you consulted an attorney in the CIA leak investigation? Have you received any indication from prosecutors that they want to question you? And what could you tell them that might shed some light on this case?

BUSH: I've told our administration that we'll fully cooperate with their investigation. I want to know the truth and I'm willing to cooperate myself. And you need to refer your questions to them.

In terms of whether or not I need advice from counsel, this is a criminal matter, it's a serious matter. I have met with an attorney to determine whether or not I need his advice, and if I deem I need his advice, I'll probably hire him.

QUESTION: Mr. President, the prime minister said he got an assurance from you that the two Australians in Guantanamo Bay will get fair treatment. And who's going to guarantee they haven't been mistreated to this point? And when will you make a decision, or when will there be a decision made of whether they face trial?

BUSH: It is my understanding that the Hicks case will be referred to the military shortly and that the other case is proceeding as well. And the military is fully investigating any allegations as to whether or not they've been mistreated. Let's see here. David Morgan. Is that you? QUESTION: That's me. Mr. President, Secretary Powell has made it clear that Iraq would have no veto power over U.S.-led forces after the formal handover on June 30th.

Why do you believe that countries like France and Russia would back a U.N. Security Council resolution if the understanding is that it would leave the Iraqi government powerless to stop an unwelcome military offensive within its borders?

BUSH: Let me tell you this. The government of Iraq will be fully sovereign and that means that our coalition will be there with the consent of the fully sovereign government. And that's what the U.N. resolution is going to say.

Now, Prime Minister Allawi has made it clear that he wants help from the coalition to deal with the security issues so that the country can have free elections. That's what he has said. He is the prime minister and that's what he has said.

We've had these arrangements before -- these security arrangements with other countries. We're good about forging relationships on the ground, respecting the sovereignty of the country and at the same time being able to do our jobs that the host government expects to be done.

BUSH: And I'm confident we'll work out a mutually acceptable security arrangement with the fully sovereign Iraqi government.

No other questions? This is unbelievable. You'd better hurry. Australians, sorry Elizabeth. You're not Australian. Oh, Mr. Lewis (ph).

STEVE LEWIS (ph): Steve Lewis (ph), Australian.

BUSH: Nice try though. She tried to become Australian.

QUESTION: President Bush, if I could ask you a question?

BUSH: Where are you? There you are.

QUESTION: Just here. Thank you. Mr. Howard and yourself reaffirmed the commitment that Australia and the U.S. have to staying the course in Iraq. But you would be aware the alternative prime minister in Australia, Mark Latham, has promised to withdraw Australian troops from Iraq by Christmas if he wins the election. What signal would that send to the Iraqi people and the other members of the coalition...

BUSH: I think that would be disastrous. It would be a disastrous decision for the leader of a great country like Australia to say that, "We're pulling out."

It would be dispirit those who love freedom in Iraq. It would say that the Australian government doesn't see the hope of a free and democratic society leading to a peaceful world. It would embolden the enemy who believe that they can shake our will. See, they want to kill innocent life because they think that the Western world and the free world is weak; that when times get tough, we will shirk our duty to those who long for freedom and we'll leave. And I -- anyway.

QUESTION: (OFF-MIKE)

BUSH: No, you can't anymore. Thank you all very much for coming.

KAGAN: We've been listening in at the Rose garden of the White House. President Bush and Australian Prime Minister John Howard meeting there, a close ally of the United States and President Bush. Australia have sent 850 troops to Iraq to help fight with that battle there. Much more on the president, also some of the questions he answered there, including why he has decided to meet with an attorney in case he's a subject and has to be questioned with the CIA leak investigation. More on that with our White House correspondents straight ahead. Also a lot more. This begins, today kicks off a big international month for President Bush and what that means for him. That is all ahead.


Aired June 3, 2004 - 09:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: U.S. troops on the attack in Kufa, trying to secure the city while the Pentagon tries to secure its fighting force.
The president taking some personal steps in the CIA leak matter incase the investigation comes to his desk.

And Scott Peterson's lawyer makes a stunning declaration about the baby his client is accused of killing.

Those stories all ahead on this AMERICAN MORNING.

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

BILL HEMMER, CNN ANCHOR: Welcome, everybody -- 9:01 here in New York. Good morning.

The headlines this hour: the Pentagon making sure it does not face a shortage of troops in Iraq and Afghanistan, putting new rules into place now that could affect thousands of men and women in uniform. Many thought they would be going home sooner rather than later. We'll get to the Pentagon in a moment. Barbara Starr has more on this.

O'BRIEN: Also this morning, we're focusing on Iraqi politician Ahmad Chalabi. He's accused of telling Iran that the U.S. cracked its secret intelligence codes. Our conversation with Senator Joseph Biden about just how damaging this might be.

HEMMER: Also, on a Thursday, David Bach is back with us today. Our personal money coach answering questions a lot of us think about putting off. Life insurance, do you have enough, how many years can you wait to get it? What type is best for you? We'll get to all those critical questions with David.

O'BRIEN: And Jack Cafferty is with us.

Hello, Jack.

JACK CAFFERTY, CNN ANCHOR: Good morning.

President Bush compared the war on terror to World War II in a speech at the Air Force Academy yesterday. Do you agree with the comparison? AM@CNN.com -- write us your thoughts.

HEMMER: A big response already, too, aren't you?

CAFFERTY: Lots of -- yes, a lot of mail.

HEMMER: Ready to go. Thank you, Jack.

Let's start this hour at the Pentagon. Some unwelcome news from there. The families of thousands of U.S. soldiers may now be affected. Those soldiers are going to be staying in the ranks longer than first expected. Barbara Starr is at the Pentagon watching this.

Barbara, what did you learn?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Bill, good morning again to you.

It is now official policy. It may not make the troops very happy, but now an Army-wide policy that troops headed for Iraq or headed for Afghanistan may not be able to retire or leave the volunteer force when they want to.

Now, what the Army has put into place is an Army-wide policy that for troops headed overseas, they may not retire or leave the service 90 days before their deployment. If they are within that 90-day window, they will have to stay, do a one-year tour of duty, and stay perhaps for 90 days after they come back. Forty-five thousand troops had already been impacted by this so-called stop loss policy, but as we say now, as of yesterday, no longer piecemeal Army-wide.

A signal officials believe is being sent here, a concern that they keep enough forces on the job and that the troops are, indeed, stretched thin so they are going to have to keep this in place. Essentially, what they want to do is make sure that combat units are fully trained, that they don't get a lot of new soldiers in, that they are full of troops that are fully combat capable without this stop loss policy, the Army says. If they didn't keep those troops in place, every time a division deployed, they'd have to find 4,000 fresh troops, and that would be a problem for unit cohesion.

So a soldier, again, might wind up staying 18 months beyond when they thought they might get out. But there's been some very interesting analysis from top Pentagon officials on just how long a soldier can stay in a combat environment.

(BEGIN VIDEO CLIP)

GEN. PETER PACE, JOINT CHIEFS OF STAFF: In all of the studies from World War II and Korea and Vietnam, indicate that at about the one-year mark, a person, an individual's personal capacity to endure combat drops off significantly.

(END VIDEO CLIP)

STARR: And now, of course, also the Pentagon looking very closely at its recruiting numbers. Are people joining up? One statistic has caused them concern. Recruiting into the Air National Guard now down more than 20 percent -- Bill. HEMMER: Barbara, thanks for that, at the Pentagon -- Soledad.

O'BRIEN: Turning now to the spying scandal involving now former ally of the U.S. and Iraq, Ahmad Chalabi. Chalabi allegedly telling an Iranian official that the U.S. had cracked the secret codes used by Iranian intelligence. But in a letter to the FBI and the attorney general's office, Chalabi's lawyers say this: "Dr. Chalabi denies all the charges which had been anonymously leaked. We therefore demand that they cease forthwith and that you order an investigation into the identity of the government sources who disclosed said investigation to the media."

The Bush administration is investigating who may have told Chalabi about the U.S. cracking Iran's secret code. Earlier on AMERICAN MORNING, we were joined by one of Chalabi's critics, Delaware Democrat Senator Joe Biden, and I asked him for his take on these allegations against Chalabi.

(BEGIN VIDEOTAPE)

SEN. JOSEPH BIDEN (D), DELAWARE: I don't know the specifics of the charge. I don't know whether they're true or not true. I do know that the State Department and the CIA have, for a long, long time, not trusted Mr. Chalabi, believed the information he has been providing us has been useful only when it's been useful to Mr. Chalabi's own political purposes, and not very useful beyond that.

So I'm reluctant to say what I don't know. I'm giving you honestly my assessment of Mr. Chalabi overall.

O'BRIEN: Give me your assessment of how big of a problem this is. I mean, it's been described as a major security breach. What does that mean exactly?

BIDEN: I think it's a big problem. I think it is a major security breach.

O'BRIEN: Meaning what?

BIDEN: Here's what it means. Up till now, we've been able to, allegedly, have access to communications from those elements within Iran, the clerical leadership, the supreme council, that has an interest very different than ours in the region. The same outfit that snuffed out the democracy movement within Iran recently, essentially disbanded the modulus, their parliament.

And it's a very useful thing, particularly to know what activity is going on inside of Iraq. Because with the Shia community in Iran and the Shia community in Iraq, one Arab, one not Arab, nonetheless, there have been close ties. A lot of people in the Shia community have been in hiding and/or out of Saddam's way in Iraq. I mean, in Iran.

So there is a lot of talk about who is on whose team. And there is going to be an incredible fight even if we get it right in Iraq among the competing factions within Iraq for leadership. And it's obviously very much in the interest of Iran to see things turn out in a way that they find most favorable, which is most likely not to be in our interests. So that's, to me, the single greatest concern, being able to access that interchange between Iranians and Iraqis who are plotting the outcome of Iraq.

(END VIDEOTAPE)

O'BRIEN: That was Senator Joe Biden earlier here on AMERICAN MORNING.

Some legal experts say that Chalabi could be prosecuted under U.S. law and that he could be vulnerable to arrest if he ever enters U.S. territory again. Chalabi's U.S. attorney, John Markham, is going to be our guest tomorrow on AMERICAN MORNING -- Bill.

HEMMER: And we get to the White House now, Soledad. Thanks for that.

President Bush has had, "discussions" with a private attorney in connection with the investigation to the leaking of the name of that CIA agent more than a year ago. Today, the president meets with the leader of Australia, then heads for a quick trip over in Europe.

To the White House and Suzanne Malveaux for more on all of this.

Good morning there.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Bill.

President Bush has had discussions with a private attorney and may retain him when it comes to that CIA leak investigation. Now, what officials are saying is that this does not mean that the president is the focus of this investigation, but rather they anticipate that he could face some questions.

(BEGIN VIDEOTAPE)

MALVEAUX (voice-over): The White House confirms President Bush has consulted a private attorney to possibly represent him in the criminal investigation into who leaked the name of a covert CIA operative last year. White House Press Secretary Scott McClellan said the president has had discussions with a private attorney recently in the event he is sought by the grand jury.

But there is no indication that President Bush is the target of the leak investigation. McClellan noted that while Mr. Bush has recently spoken to Washington attorney Jim Sharp (ph), he has not yet retained him.

The leak first appeared in a print last July that anonymous senior administration officials had exposed the identify of CIA operative Valerie Plame. Plame's husband, former Ambassador Joe Wilson, had publicly accused the president of using bogus intelligence to make the case for invading Iraq, and Wilson suspected the White House was seeking revenge. Wilson had been hired by the CIA to investigate reports that Iraq had sought uranium from Africa. Mr. Bush used that information in his 2003 state of the union speech as part of his case to go to war.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Saddam Hussein recently sought significant quantities of uranium from Africa.

MALVEAUX: Since January, a federal grand jury has been hearing testimony from administration and government officials to try to find who leaked Plame's identity, a federal crime. It has combed through thousands of pages of documents turned over by the White House and called witnesses, but returned no indictments. McClellan said the president has always encouraged everyone in the White House to cooperate with the investigation, and that would mean him, too.

(END VIDEOTAPE)

MATTHEWS: Now, clearly, the leak investigation has become a political football during this election season. The Democratic National Committee immediately released a statement, calling for President Bush to come forward with everything that he knows and to come clean with the American people -- Bill.

HEMMER: Suzanne, also, I mentioned the meeting with the Australian prime minister today. We'll carry that live a bit later this morning. Also, this trip over to Europe, give us more details on what is happening there in France, first off.

MALVEAUX: Bill, this is a critical trip for the president, of course. It really is a chance to prove his credibility here.

In the short term, what he is trying to do is win the support of a U.N. Security Council resolution for Iraqi sovereignty. In the long term here, he is trying to again build alliances, repair those relations with France, with Germany, with other counterparts who were against the war effort. And also, he is trying to convince his critics to counter that kind of criticism that says he lost much of the goodwill and the credibility from the international community because of his Iraq policy.

HEMMER: And after that, it's the Sea Island in Georgia and the G-8. Thanks, Suzanne. Suzanne Malveaux on the front lawn.

Soledad?

O'BRIEN: Let's turn now to California. Testimony resumes today in Scott Peterson's double murder trial. Defense attorney Mark Geragos hit the ground running yesterday with his opening statement, calling the state's case flimsy and circumstantial, and declaring his client "stone cold innocent." That after prosecutors painted Peterson as a liar and a cold-blooded killer.

So which side made a better first impression on the jury? CNN's legal analyst, Jeffrey Toobin -- senior legal analyst I believe we need to say. Jeff Toobin joining us with a take on that. We're like five seconds into this and already -- I mean, they have just run right out of the gate. Mark Geragos called his own client a cad but not a murderer. What do you think of that strategy? Like he's a bad guy, he obviously was cheating on his wife, but he didn't kill her.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: I they he has to make that argument. It's a little like the Kobe Bryant case. Adultery doesn't mean rape in that case. Say the defense attorneys here, adultery doesn't mean murder.

In fact, the argument he is making -- Geragos is making in the Peterson case -- is, look, he didn't care about his wife because he had an affair with Amber Frey. He didn't care about Amber Frey either. And he wasn't willing to kill his wife to do it. So it is not an appealing picture of Scott Peterson, but I think people do understand intuitively that adultery doesn't equal murder.

O'BRIEN: You can tell already from the opening statements that the timing of the baby's death and also the forensic evidence about when the baby was born, those things are going to be critical, central to the case. Is this going to be like a dueling experts...

TOOBIN: There will certainly be dueling experts on this. And it is -- look, I mean, Geragos has good arguments if he can back them up. The prosecution's theory is completely clear that she was killed, together with her unborn baby, on December 24th. Killed somehow, we don't know -- it's a problem in the prosecution case -- and thrown into San Francisco Bay.

Geragos says, no, that baby was born alive. If he can prove that through the autopsy evidence on the baby, it really does make the prosecution theory almost completely wrong.

O'BRIEN: How does Geragos, though, deal with some things like his client was found with $15,000 in cash and dyed his hair, told his best friends that it just got a little bleached in the swimming pool and that he had an I.D. that didn't belong to him, an identification card that was not him on his person? I mean, all those things seem extremely damaging, I think. And I get it's circumstantial, but if you're a jury member, you're going to say, come on, what is he covering up?

TOOBIN: Doesn't it look like he's trying to skip town with all that? But he did have explanations for all that.

He said, look, there was a media frenzy, which there was. He was trying to get away. He had his brother's I.D. because he wanted to play cheap golf in San Diego, where local residents got a discount.

I mean, you know, each piece of evidence can be refuted in some way. The problem is there's a lot of it, and maybe all of the investigations just look like, you know, inventions.

O'BRIEN: What is this connection with Martha Stewart?

TOOBIN: It's the unified theory of all scandals.

O'BRIEN: All of the trials connect to Martha.

TOOBIN: All of them come together. OK. Here you go.

The prosecution claimed that Peterson said the last time he saw his wife she was watching the Martha Stewart show, and it was about how do you make meringue. But Geragos came back, in his opening statement, and said, no, the meringue show was the 24th, the day that Peterson said he was. The prosecution had said, no, it was on the 23rd. So there is a dispute in the case about what did Martha say and when did she say it.

O'BRIEN: That's got to be easy to clarify and confirm.

TOOBIN: Well, they both played statements from Martha Stewart's show in their opening statements, and there was apparently some discussion of meringue in both the 23rd and the 24th. So poor Martha.

O'BRIEN: I tell you. Yes, dragged into another case. Who wants to be part of this case? It is going to be, I think, just a really interesting trial because there is just a lot there.

TOOBIN: And California, it's a long one.

O'BRIEN: Yes, no question about that. We know that. If history is any mark of that.

All right. Jeff Toobin, thanks, as always.

(WEATHER REPORT)

HEMMER: About 16 minutes past the hour. Now more headlines. Over to Heidi Collins and more on that. Iraq news again today.

HEIDI COLLINS, CNN ANCHOR: That's right. More Iraq news indeed.

In fact, in Iraq, there is word this morning a mortar attack injured several Iraqis near the Italian embassy in Baghdad. That is according to wire reports at this time.

Meanwhile, fighting persists in the Iraqi holy city of Kufa. The U.S. military says 30 insurgents were killed in the latest operation. The fighters are believed to be behind mortar attacks on a U.S. base.

One of the three Italian hostages in Iraq says their captors are treating them excellently. The Arab television network, Al Jazeera, aired video of the three men yesterday. It's the first time pictures were seen of the hostages in more than a month. You're looking at it now.

The three men were among four Italians taken hostage on April 12th. Al Jazeera said it received a statement from the captors who identified themselves as the Green Brigades. They're calling on Italians to protest the country's policies in Iraq. FBI Director Robert Mueller expected to face questions from lawmakers on changes being made to the agency post 9/11. He'll go before a House subcommittee later today. The FBI chief appeared with the attorney general last week to release pictures of individuals believed to be plotting against the United States.

It's time to head back into the movie theater in Kabul, the country's largest theater in Afghanistan, called the Arianna (ph). It's finally opened for business. The Taliban regime shut down the cinema in the 1990s and Arianna (ph) has completely been rebuilt with the support of the French film industry.

And a hot dog vendor in Detroit known for belting out a tune while handing out hot dogs is being asked to put a lid on it. I think he should be on "American Idol."

Some fans say he's the most entertaining thing at the Tigers' home games. Ouch. But workers who handle concessions at the stadium say they've gotten some complaints about the singing. It's not clear whether this no singing order will stand.

O'BRIEN: He doesn't sound very good.

COLLINS: I think he wasn't that bad.

CAFFERTY: What is the difference?

HEMMER: Just trying to make a buck.

CAFFERTY: So he sells hot dogs and sings. Where is this, Detroit?

HEMMER: Yes. Get a sense of humor.

O'BRIEN: I didn't think he sounded on key to me, but that's me.

COLLINS: Maybe we should book him as a guest.

HEMMER: Picky, picky, picky.

O'BRIEN: Give me my hot dog.

CAFFERTY: Maybe you pay him extra not to sing. Yes, hot dog with mustard and no songs.

HEMMER: Now you're talking like an entrepreneur.

CAFFERTY: Three dollars for that. All right.

The speech at the Air Force Academy yesterday, the graduation ceremonies, the president compared World War II to the war on terror. He talked about the similarities between the September 11th attacks and those at Pearl Harbor. The president said this is not the time for impatience or pessimism, and he said Americans must show the same courage of past generations. So we asked this morning, is the global war on terror this generation's World War II? Brian in Pittsburgh writes this: "I believe that the war on terror is more akin to the never-ending war on drugs than World War II. In World War II, there were clear-cut lines of battle, along with a sure sense of exactly who it was we were fighting."

Steven in Toronto writes: "I disagree with the president. He should be comparing the war on terror in Iraq and Afghanistan to Vietnam. Vietnam was a war that was unwinnable and exhausted the nation's finances and was unjust."

Carolyn in Cincinnati writes: "Shame on you! Of course, the two wars are to be compared. My father in World War II or my son in this war. I'm proud of them both, and for anyone to denigrate this war and make it appear less than what it is only shows their ignorance and lack of foresight."

And this letter, "World War II had Hitler, who controlled the most powerful military of the day, teamed with the Italians and the Japanese. Today we have a bunch of thugs who have no state or army and are more comparable to the Hells Angels. It's mind-boggling how the American public has allowed themselves to be manipulated."

We'll do one more batch of these.

O'BRIEN: Excellent, I think, some of the feedback.

CAFFERTY: Interesting question.

O'BRIEN: Yes. And fantastic e-mail. Great question, too.

HEMMER: And history will tell us where it fits in. To be determined.

O'BRIEN: Yes, that's true. Thank you, Jack.

CAFFERTY: You're most welcome.

O'BRIEN: Still ahead this morning, maybe you're thinking about buying life insurance. Do you really need it? We've got some advice and tips coming up.

HEMMER: Also in a moment here, sunscreen is a must when you go to the beach. But it turns out you cannot buy the best protection out there, at least in this country anyway. We'll tell you why with Sanjay.

O'BRIEN: And President Bush heads to Italy, a key ally in the Iraq war. But don't expect a warm welcome.

Those stories are all ahead as AMERICAN MORNING continues right after this short break.

(COMMERCIAL BREAK)

O'BRIEN: It's been called the foundation of your financial plan, but it often causes confusion and anxiety. We're talking about life insurance this morning, and this week's edition of "90-Second Tips" tackles the significant part of your financial life.

I recently asked our personal finance contributor, David Bach, for some important advice on the matter, like who needs it, what kind and how much? Bach is the author of the best-selling book "The Automatic Millionaire." And I said, let's start with exactly who needs to buy into the life insurance plan.

(BEGIN VIDEOTAPE)

DAVID BACH, FINANCE CONTRIBUTOR: If you are single, no kids, no family, nobody that needs money if you die, then you don't need life insurance. But basically everybody else does. Again, if you have family, if you have children, if you have a spouse, if you have a mortgage payment, you probably want to have a protection plan.

O'BRIEN: Let's walk through some of the options, because I actually -- we just did our life insurance, and I find it so confusing.

BACH: It's overwhelming, and people are scared by it.

O'BRIEN: OK. So there is term and there is whole to start with. Let's start with those two. What is term?

BACH: The key thing with term is that what you're buying is a death benefit. So you pay a specific dollar amount a month. And usually people will get what's called a level policy. They'll get a 10-year or a 15 or a 20-year policy. The monthly cost is fixed.

O'BRIEN: Now why would you go for that? I mean, after 15 years done, you have no insurance suddenly.

BACH: The reason people choose term is because it's significantly less expensive than whole life insurance. So what they're saying is, look, over the next 20 years, I know I want to have a million dollars in life insurance incase I die before my kids get to college.

O'BRIEN: Then let's talk about whole life insurance. Whole covers your whole life, I assume?

BACH: Whole life insurance is what we call cash value life insurance. It's where you're putting money into an insurance policy and part of the premium is actually building a little nest egg for you. And that money is going into an investment, which is like a CD or money market account. It's very secure.

A lot of people recommend that whole life insurance is an investment in addition to the death policy. How much death benefit do you need? That is the most important thing. What is your income and what are you covering?

O'BRIEN: All right. So how much do you need?

BACH: Well, people say there are all kinds of formulas. You need to take four times your salary. You need to take eight times your salary. You need to take 12 times your salary.

It depends. Tell me how big your mortgage is, tell me how much money you want to provide your family. Usually somewhere between 8 to 12 times your annual income is a large enough death benefit to totally protect your family. The key thing with whole life insurance is that you can borrow out the money, and you borrow that money out tax-free.

So, again, as you have greater wealth, a lot of people will say, for sophisticated investors, look at life insurance both as a death benefit but also as an investment vehicle and possibly an estate- planning vehicle. The key thing to understand with insurance is that it comes to your beneficiaries tax-free. So there is a lot of ways to use insurance. It's not simple, and also you have to make decisions on who do you buy it from.

O'BRIEN: Who do you buy it from? Because there are even ads in the paper about who you could get it from more. You could have a broker call you up on the phone or you could go to your guy, you know somebody who sells it. Who do you buy from?

BACH: I think it depends on how much you're buying and how sophisticated you are. If you're looking for term policy today, let's face it, bottom line, you can get a very cheap term policy by going online, doing a Google search, and running a bunch of different Internet company searches and finding the best price.

If you're looking at a whole life insurance policy, then realistically you're going to want some advice. And you're going to need to pay a commission for that to the person who is giving you the advice. Then I recommend talking to a professional insurance expert.

What I recommend you do when you work with a financial expert is you say, I want to understand what you're getting paid. So if I'm buying a $3 million variable life insurance policy, and I'm putting $5,000 into this policy every year, explain to me how much do you make?

That way you understand, OK, great, this person is making this much money in commissions. Then you're clear at least on what the cost is. Another thing that is really important, what is the cost to get out of the insurance policy? Make sure you know what the termination fee is if you cancel the policy.

(END VIDEOTAPE)

O'BRIEN: David Bach has his own nationally syndicated radio show. It airs every Saturday afternoon on Sirius Satellite Radio. And every Thursday you can catch David right here on AMERICAN MORNING with tips on how to improve your financial life.

Bill?

HEMMER: In a moment here, Soledad, international diplomacy now for the president from the White House to Europe this weekend. What kind of reception can the president expect? Especially in places like France. Also in a moment here, surviving summer. Some common sense tips today on making your next trip to the amusement park a safe one.

Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody -- 9:30. Good morning.

O'BRIEN: Good morning.

HEMMER: I've welcomed you back, haven't I?

O'BRIEN: Thank you. Yes.

HEMMER: Good to have you.

O'BRIEN: Thank you very much. Nice to be back.

HEMMER: In a moment here on AMERICAN MORNING, the president has an important diplomatic mission ahead of him. Boy is this big. Talking to the U.S. allies this week and this weekend about what he has planned for Iraq and the next steps for sovereignty. We'll get a report from Italy in a few moments.

Also, expect to get some live remarks from the president and the White House with the Australian president today. We'll get you there live this half-hour as well.

O'BRIEN: Also this morning, our summer safety series continues. We're looking at amusement park safety and whether blind trust is really the best way to have a good time on all those rides, or maybe there are a few precautions that are in order. That's ahead.

HEMMER: Also, a very intriguing medical story here. The most common form of cancer in America can be prevented in so many cases. Why isn't the product that works best against skin cancer or preventing it in, anyway, in sunscreens, why is that not available in this country? Sanjay has that in a moment. We'll try and get some answers for you.

O'BRIEN: All right. But first, President Bush meeting with Australia's prime minister at the White House this morning before heading to Europe for the weekend. The first stop is Italy, where Mr. Bush will meet with Pope John Paul II and with Italian prime minister Silvio Berlusconi.

The president is expected to get an enthusiastic official reception, but unofficially it may not be quite so warm. Here is Alessio Vinci in Rome.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (voice-over): Italians welcome President Bush with mixed feelings. There is gratitude for allied help liberating Italy 60 years ago, but also growing discontent towards today's unwanted war in Iraq, a conflict that so far has claimed the lives of 20 Italian soldiers and four civilians, a body count people here are still trying to absorb.

UNIDENTIFIED FEMALE: We know from recent polls that six out of 10 of the Italian public opinion thinks that we would have to withdraw by the end of June. So certainly there is the sense of new vulnerability.

VINCI: In Rome, Bush will meet two leaders with opposing views on that conflict, Prime Minister Silvio Berlusconi, who stands shoulder to shoulder with the U.S. president. "The west isn't the aggressor," the prime minister said in a recent interview. "We are defending ourselves and trying to rout out terrorists from their hideouts. That's what happened in Afghanistan and that is what Bush says is the case in Iraq."

A less enthusiastic welcome is expected at the Vatican. Pope John Paul II was a fierce opponent of military action and predicted war would bring chaos.

UNIDENTIFIED MALE: All of those warnings are now being shown to have been correct. The analysis was correct on the part of the holy father.

CROWD: Stop, stop, stop the war!

VINCI: Tens of thousands plan to attend a large antiwar protest on Friday. And security officials, who will deploy 10,000 policemen to patrol the city, are bracing for possible violence.

(on camera): President Bush will come nowhere near those demonstrators who plan to gather here in the historical Piazaa Vanezia (ph). Also home here behind me to the Tomb of the Unknown Soldier. An initial plan for the president to lay a wreath here was also scrapped because of security reasons.

(voice-over): The president will be in Italy for 36 hours, enough time to hear both praise and some criticism in a country still debating whether it was a good idea to invite him.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE)

O'BRIEN: And we've got this just in to CNN. OPEC members are announcing that, in fact, they are raising production by two million barrels a day. That starts on July 1st. Another 500,000 today will be added to that additionally. That starts on August 1st.

The question, of course, is the impact on what that will have on what you pay at the pump. There might be more, some people say, psychological impact than actual dollar value since the United States uses some 20 million barrels of oil every single day. Susan Lisovicz is going to join us with a little bit more on that in just a few moments. Also later this hour, CNN will have live coverage of the president' joint news conference with Australia's prime minister. That at 9:50 am Eastern Time.

Bill?

HEMMER: All right. As we await that, Soledad, 25 minutes now before the our hour.

If you're a fan of the roller coaster, then you know every year they seem to get bigger and faster and more thrilling. But are these mechanical marvels as safe as they should be? Already, so far this year, we've seen three ride-related deaths.

This morning, as part of our "Surviving Summer" series, some advice to you, common sense tips on how to keep that trip from turning tragic. I talked with the safety advocate Kathy Fackler this week, asking her what helped her and led her to found the group Safer Parks.

(BEGIN VIDEOTAPE)

KATHY FACKLER, SAFER PARKS: In 1998, when my younger son was five years old, he was in a bad accident on a roller coaster, and his foot was torn in half. And what concerned me, almost as much as the accident, was the lack of any kind of safety oversight or public reporting.

The accident was just kind of covered up. And it seemed to me that if something that serious could happen on a modern roller coaster for my own child, that the public wasn't getting the kind of information that they need in order to protect their own families.

HEMMER: So intimately you were involved in this issue. I want to talk about some of the tips you provided for us. Number one, dress for safety. Not quite sure what you mean by that with summertime and T-shirts, a lot of flip-flops out there. Explain, if you could.

FACKLER: Well, if you think about it, you're really going down to spend the day with industrial machinery. So you need to dress appropriately, which means have closed-toed shoes without high heels. You don't want to be tripping around machinery like that. You don't want to have any dangling necklaces or earrings or drawstrings that might get caught up in the machinery.

HEMMER: Find the ride that fits, that's advice number two. What do you mean by that, Kathy?

FACKLER: That's very important, especially with modern day machines. They're meant to fit people who are 170 pounds. Adults, for the most part.

So anyone who is on either end of that spectrum is going to be more likely to be hurt. Younger children are at highest risk for ejection and falling out of amusement rides because the restraints are made to fit adults. So you need to pick and choose and find the ride that fits your child and safely contains him or her. HEMMER: You mentioned children twice in your answer. This goes into the next issue here, number three, learn before you board. Learn before you get on.

FACKLER: It's very important that you understand how the machine works, where the load and unload points are, what kind of ride action it's going to have. And particularly if you're trying to figure out what ride is right for your child, take a look at his or her face, see what they think about it.

Some children who are very timid shouldn't be on rides that might scare them. You never want to put your child on a ride that scares him, because if he happens to be scared and does something to get himself hurt, you're going to regret it later.

HEMMER: Get off safely. Are you suggesting that people don't wait till the ride is over?

FACKLER: Well, oftentimes, they're just too excited and they want to go off on another ride. Oftentimes, for young children, especially, it can be quite confusing.

Some rides will stop temporarily before the unloading point. And a 5-year-old has no idea what the difference is between a permanent stop and a temporary stop. So you need to be able to teach them where the unloading point is and make sure that they stay safely inside.

HEMMER: Overall, Kathy, do you think the amusement parks are getting safer year by year or not?

FACKLER: I think that amusement parks are paying an awful lot of attention to safety. And I think as patrons now, it's our job to kind of meet them halfway and learn how to use the equipment safely.

(END VIDEOTAPE)

HEMMER: Kathy Fackler earlier this week. For more safety tips and information, log on to her Web site, saferparks.org, online for you right now.

Also, tomorrow, final part of our series "Surviving Summer." We'll tell you about barbecuing safely. Tips to know.

Soledad?

O'BRIEN: Still to come this morning, Dr. Sanjay Gupta stops by to tell us why the best sunscreen in the world isn't available to us here in the U.S.

Also ahead, the Red Planet is ready for its close-up. We've got more amazing pictures as AMERICAN MORNING continues.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. The sunshine coming through here in Manhattan. Just appropriate for this next segment. The harmful effects of the sun have our attention today. As you generously apply that sunscreen, think about this prospect: the best protection against the sun is not even available in this country. Sanjay explains at the CNN center.

What gives, Sanjay? Good morning.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, Bill.

Yes, most people get the importance of sunscreen. But even I was surprised to learn that one of the best ingredients, something known as mexarel (ph), not yet available in the United States. Available primarily in Canada, Europe, Mexico, South America and Australia.

What gives is that most sunscreens, you go to your store, you buy it over the counter, or just buy it from the counter somewhere. But this is actually a prescription product and has not yet been FDA approved.

The reason people are very excited about this product that is, again, not yet available here, is that doctors believe it is two times better at protecting against UVA rays. Again, not available here in the United States. Loreal, a company seeking FDA approval. European studies have already studied this product, finding that it's pretty safe and effective.

Now, doctors are always going to advocate sunscreen usage, especially when you're outside in the sun for a long time. But this product, a lot of people are getting excited about it and they want it approved here in the United States before too long -- Bill.

HEMMER: Short of that, though, why doesn't any sunscreen in the U.S. have something that's even comparable?

GUPTA: You know -- good question. Again, I was sort of surprised by this as well. It turns out it's sort of a historical question.

For a long time, it was believed that UVB rays were the most harmful rays. And, therefore, a lot of the sunscreen products that you see today are actually focused on these UVB rays. The UVB rays, incidentally, most people know, most intense midday. They're the ones that cause sunburns, cause wrinkles and cause skin cancer.

It was years later that people started to recognize the importance of UVA rays as well. This is the other kind. About 90 percent of radiation, most intense in the early morning and the afternoon.

This is the stuff that can penetrate glass, like when you're driving in your car, cause wrinkles, cause skin cancer, weaken your immune system. So as doctors and researchers learn more about UVA rays, they're going to make products that protect as well against both.

HEMMER: And as you mentioned, mexarel (ph). If people are looking for the right product, what do they need to look at on the label? What products, what ingredients are important?

GUPTA: It's still important to use sunscreen. There are some important things to look for. SPF 15 or greater, look for UVA protection, specific products, parsal1789 (ph) or avobenzone (ph). Those are the ingredients to look for. UVB protection: zinc oxide. That's the colorful stuff you put on your nose sometimes. Titanium dioxide. And remember, broad spectrum means nothing. You've got to reapply the stuff. Even if it's SPF of 900, you've still got to reapply it or it won't work -- Bill.

HEMMER: Thank you, Sanjay. And again, good to have you back.

GUPTA: Thanks.

HEMMER: Sanjay Gupta at the CNN Center.

In a moment here, Disney movies usually have a happy ending. We know that. But does the same hold true for one particular relationship with a very important partner? We'll get to that.

Back in a moment here after this.

(COMMERCIAL BREAK)

O'BRIEN: It's 46 minutes past the hour now. It's time for a look at some of the other stories now that are making headlines today with Heidi Collins.

Good morning to you.

COLLINS: Good morning to you guys as well. And good morning to you, everybody.

President Bush meeting with an ally of the war in Iraq. The president hosting Australia's prime minister, John Howard, before taking off for Europe. Mr. Bush will begin the European trip in Rome, where he'll meet with Italian leader Silvio Berlusconi and the pope. He'll then attend D-Day ceremonies in Normandy before heading to the G-8 summit, which begins next week.

A joint news conference with President Bush and Prime Minister Howard is set to begin shortly in the Rose Garden. Of course we will have live coverage of that event for you.

Meanwhile, on the campaign trail, Democratic presidential candidate John Kerry attacking Bush on Iraq. Senator Kerry expected to deliver a speech at the Truman Presidential Library in Missouri, saying the lack of troops has complicated the mission of stabilizing Iraq. Kerry is on an 11-day campaign blitz, laying out his national security plans.

In California, Scott Peterson's attorney says his client is, "stone cold innocent." The defense accused police of failing to pursue evidence that would have led them to the real killer or killers. The first of hundreds of witnesses took the stand yesterday. Scott Peterson is accused of killing his wife, Laci, and their unborn son. Testimony there continues today.

NASA revealing new pictures from its extended Mars mission. The Opportunity Rover has been driving around the southern rim of what's called the Endurance Crater, seen here. Scientists say there are a number of incredible rock formations, but NASA says its still deciding whether to risk a trip inside the crater. Pretty steep.

And some neighbors and city officials in Providence, Rhode Island, don't like their neighborhood ape. Everybody has a neighborhood ape, right? Well, Val, the 400-pound inflatable gorilla, has been a fixture on Lloyd Morris' (ph) lawn, but when he was used to advertise a flea market, neighbors said no way. The city is now threatening a fine of $100 a day. Mr. Morris (ph) plans to fight the fines and has asked the ACLU to help him. That makes perfect sense doesn't it?

HEMMER: Those neighbors need better fences.

COLLINS: Or something ...

HEMMER: Thank you, Heidi.

Getting reaction now to this OPEC decision that Soledad talked about a short time ago. Susan Lisovicz working for Andy Serwer today.

The markets are watching this closely, too.

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Yes. The three major averages right now are down.

OPEC, as expected, increasing production, two million barrels per day. And as you know, Bill, and have told me, the U.S. uses on a daily basis 20 million barrels a day. We've seen oil trading higher overseas.

Other economic news out today, weekly jobless claims. A forerunner to tomorrow's employment report down. The four-week average is down. That's good.

We also got some retail sales for the month of May. Wal-Mart, the world's biggest retailer, coming in well above estimates, nearly 6 percent, despite the fact that Wal-Mart says that higher price of oil eats up $7 per week in disposable income.

So the economic news is pretty good, been a quiet week so far. The catalyst this week, oil, the higher price of oil. And interest rates, which will gauge better tomorrow.

HEMMER: Any coincidence that Andy Serwer is in Bentonville, Arkansas, working on a piece for Fortune Magazine and here it is Wal- Mart is in the news?

LISOVICZ: Always in the news.

HEMMER: That's so true. A million employees around the world. Michael Eisner and Disney and Pixar, are they going to be able to settle this dispute that they've got going here?

LISOVICZ: Well, certainly Michael Eisner and Disney want this agreement with Pixar signed, sealed and delivered. Why? Because Pixar is the Smarty Jones of animation.

Think about it. Every picture that Pixar has put out, whether it's "Finding Nemo," last year's blockbuster, "Monsters," or "Toy Story," has been an enormous success.

It's a tough year for Disney, whether it's the shareholder revolt, whether it's the hostile bid. Eisner says he is still optimistic that that deal could get back on track, but he says no talks are under way right now. However, he's encouraged by the fact that Pixar hasn't been talking to anyone else.

HEMMER: It's a great comparison, too, by the way.

LISOVICZ: Smarty Jones...

HEMMER: Smarty Jones, Pixar, the little guy.

LISOVICZ: Yes.

O'BRIEN: All right. Susan, thanks.

LISOVICZ: My pleasure.

HEMMER: Good to have you here.

I want to get you to the White House real quick. Watching the camera here. The British -- or rather the Australian prime minister, excuse me, slip of the tongue -- meeting with President Bush. And we do expect a statement here.

Australia one of the firm partners for the White House so far in the war on terror. And all this preceding the president's trip to Europe. That will get under way as soon as this statement gets concluded today in the Rose Garden.

O'BRIEN: And, of course, firm partner, but Australia has actually ponied up just 850 troops, which some people say, for such a staunch ally, is sort of low as the figures go. The president is expected after he does this joint conference. We'll hear from -- oh, here they come.

That is, of course, John Howard. He's the Australian prime minister on your left here . And President Bush coming out to make a joint statement. Let's listen in.

(INTERRUPTED BY LIVE EVENT)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Good morning. Thanks for coming.

Couple of opening statements and we'll answer two questions from each side.

It's my honor to welcome back to the White House my friend and our ally Prime Minister John Howard. He is a close friend of mine. I appreciate the frequent discussions we have. I value his advice. I appreciate his clear vision.

Our two nations were allies in every major conflict of the last century. We've each lost citizens in the first war of the new century.

I will never forget standing with the prime minister on September the 10th, 2001, the day before the world changed forever.

Americans will never forget the vicious attack in Bali which claimed the lives of dozens of innocent Australians.

Today, Australians and Americans are standing together on the front lines of freedom.

As members of the common coalition, our two nations helped to free the people of Afghanistan and Iraq from the grip of tyranny. Today, we are working together to help the Afghan and Iraqi people build free societies and prevent tyranny's return.

Today, the prime minister and I discussed our coalition's progress in Iraq. The country took a major step two days ago when the new interim government was named. That government will assume full sovereignty later this month.

Our coalition will remain in Iraq to help them along the path of freedom.

The new Iraqi government's foremost task will be to prepare Iraq for a national election no later than January of next year and to work with our coalition to provide the security that'll make that election possible.

A sovereign Iraq deserves the full support of the international community as it works to establish a representative and freely elected system of government in the months ahead.

We're working toward a new Security Council resolution that will express international support for Iraq's interim government, reaffirm the world's security commitment to the Iraqi people, and encourage other U.N. members to join in the effort of building a free Iraq.

BUSH: I appreciated the prime minister's advice and support for the ongoing process.

Today, I'll leave for Europe and then we'll host the G-8 summit.

I will discuss -- continue to discuss with world leaders our common responsibility to help the new government of Iraq and our common opportunity to help to advance the momentum of freedom in the broader Middle East. Freedom must succeed in Iraq. In the long run, the defeat of terror requires the triumph of hope. A free Iraq rising in the heart of the Middle East will show the people of that region a clear alternative to the bitterness that feeds terror.

Freedom is the true foundation of stability, prosperity and peace. By working for freedom in the Middle East, we make America, Australia and the world safer.

The United States and Australia are committed to the principles of human dignity. Today, I assured the prime minister that my nation will conduct a full accounting of the cruel and disgraceful abuse of Iraqi detainees. He strongly reflected his government's and the Australian people's desires to make sure that the Australians being held in Guantanamo are not only treated fairly, but their cases are brought to finality.

And I appreciated your candid discussion, Mr. Prime Minister.

We also, of course, discussed issues that affect our economies. Just last month, our two nations signed an important free trade agreement that would eliminate nearly all tariffs on manufactured goods, open international markets and deepen our strong economic ties.

This agreement is good for both countries, and our Congress and the Australian parliament should ratify the free trade agreement as soon as possible. I assured the prime minister that I'll work with leadership in the Congress -- in our Congress to move this agreement forward.

Australia and the United States have never been closer. Our closeness is based on a shared belief in the power of freedom and democracy to change lives.

As the prime minister said, the war on terror is not a contest of civilization, it is a contest of convictions. Our victory hinges on the free world's willingness to protect and encourage democratic values.

I look forward to seeing the prime minister in France later this week as we commemorate the Normandy landings. It will be a fitting time to remember our partnerships in past wars of freedom, as well as the sacrifices we have made together in our current struggle.

Mr. Prime Minister, welcome.

JOHN HOWARD, PRIME MINISTER OF AUSTRALIA: Thank you, Mr. President.

May I express to you personally and to your wife, Laura, and to the members of your administration, my gratitude for the very warm welcome that you've extended to me and my wife and the other members of my party?

HOWARD: You reminded me, Mr. President, that the first occasion on which we met in our respective positions was indeed the 10th of September, 2001, at the naval dockyard not far from here and then we later continued our discussions at the White House.

Since then, we have worked together not only as leaders of two countries that share the values of democracy, share the values of aspirational people who believe in economic achievement and individual liberty, but also work together very closely in the war against terror.

We continue to work closely with you and share your aspirations for a free and democratic Iraq.

The establishment of the Iraqi interim government is a major step forward. It is a light to the future so far as Iraq is concerned. It is a visible demonstration of the willingness of Iraqi leaders to stand before their people and to show leadership.

The Western world, the countries of the free world have a lot at stake in relation to Iraq. If the democratic future of Iraq can be achieved, that will have beneficial consequences not only in Iraq, but it will also be a wonderful demonstration in the Middle East and around the world that democracy is not something which is confined to countries that have historically enjoyed it.

I regard that is something of an arrogant attitude on behalf of those who think that in some way democracy cannot be extended to countries that haven't regularly enjoyed it over past decades.

In recent weeks, the news out of Iraq has not been as positive as we would of liked. And the reason for that are understood. But that has not altered Australia's view.

HOWARD: We will keep a presence in Iraq. We will maintain a presence in Iraq until the job assigned to the individual force elements of the ADF have been completed.

This is not a time -- it is the worst time imaginable for allies to be showing any weakness in relation to the pursuit of our goals in Iraq. And I express my strong support for the leadership that the president has continued to display, particularly through some of the more difficult aspects of recent weeks.

We did take the opportunity of canvassing the free trade agreement, and I share very much the president's hope that the legislative processes is in both of our countries can be disposed of as soon as possible.

From Australia's point of view, this is a great opportunity to link our strong economy with the strongest economy the world has ever seen. The economic relationship between Australia and the United States can only get better in so many areas. And I had the opportunity in California of discussing growing energy links between our two countries.

I welcome the assurances the president has given me regarding the proper treatment of the two Australian detainees in Guantanamo Bay.

I also want to take this opportunity of emphasizing that the relationship between our two countries, which goes back a long way, to which the president referred, is very much a relationship which is built on shared values. We are both countries that treasure the democratic tradition. We are both countries that treasure individual freedom. We are both countries that believe in individual effort and reward for that effort.

Ours is a society, as is the United States, that encourages people to work hard and seek reward for that hard work and, providing they pay their fair share of tax, to keep what they earn and to build on it and to invest for the future. Unless you have an aspirational society built on those principles, economic progress cannot be achieved.

We have been through, as nations, many struggles together. As the president said, we've been engaged together in every major conflict beginning in World War I.

But the thing that binds us together more than anything else is a common belief in certain fundamental values. And for me, the greatest opportunity that an occasion such as this presents is to reaffirm that common commitment.

We will differ. We will have changed emphasis.

HOWARD: We will not agree on everything. But at the end of the day, if you share values in common, the relationship between two nations will always be sure, will always be predictable and above all will be enduring.

BUSH; Thanks, John.

QUESTION: Mr. President, why have you consulted an attorney in the CIA leak investigation? Have you received any indication from prosecutors that they want to question you? And what could you tell them that might shed some light on this case?

BUSH: I've told our administration that we'll fully cooperate with their investigation. I want to know the truth and I'm willing to cooperate myself. And you need to refer your questions to them.

In terms of whether or not I need advice from counsel, this is a criminal matter, it's a serious matter. I have met with an attorney to determine whether or not I need his advice, and if I deem I need his advice, I'll probably hire him.

QUESTION: Mr. President, the prime minister said he got an assurance from you that the two Australians in Guantanamo Bay will get fair treatment. And who's going to guarantee they haven't been mistreated to this point? And when will you make a decision, or when will there be a decision made of whether they face trial?

BUSH: It is my understanding that the Hicks case will be referred to the military shortly and that the other case is proceeding as well. And the military is fully investigating any allegations as to whether or not they've been mistreated. Let's see here. David Morgan. Is that you? QUESTION: That's me. Mr. President, Secretary Powell has made it clear that Iraq would have no veto power over U.S.-led forces after the formal handover on June 30th.

Why do you believe that countries like France and Russia would back a U.N. Security Council resolution if the understanding is that it would leave the Iraqi government powerless to stop an unwelcome military offensive within its borders?

BUSH: Let me tell you this. The government of Iraq will be fully sovereign and that means that our coalition will be there with the consent of the fully sovereign government. And that's what the U.N. resolution is going to say.

Now, Prime Minister Allawi has made it clear that he wants help from the coalition to deal with the security issues so that the country can have free elections. That's what he has said. He is the prime minister and that's what he has said.

We've had these arrangements before -- these security arrangements with other countries. We're good about forging relationships on the ground, respecting the sovereignty of the country and at the same time being able to do our jobs that the host government expects to be done.

BUSH: And I'm confident we'll work out a mutually acceptable security arrangement with the fully sovereign Iraqi government.

No other questions? This is unbelievable. You'd better hurry. Australians, sorry Elizabeth. You're not Australian. Oh, Mr. Lewis (ph).

STEVE LEWIS (ph): Steve Lewis (ph), Australian.

BUSH: Nice try though. She tried to become Australian.

QUESTION: President Bush, if I could ask you a question?

BUSH: Where are you? There you are.

QUESTION: Just here. Thank you. Mr. Howard and yourself reaffirmed the commitment that Australia and the U.S. have to staying the course in Iraq. But you would be aware the alternative prime minister in Australia, Mark Latham, has promised to withdraw Australian troops from Iraq by Christmas if he wins the election. What signal would that send to the Iraqi people and the other members of the coalition...

BUSH: I think that would be disastrous. It would be a disastrous decision for the leader of a great country like Australia to say that, "We're pulling out."

It would be dispirit those who love freedom in Iraq. It would say that the Australian government doesn't see the hope of a free and democratic society leading to a peaceful world. It would embolden the enemy who believe that they can shake our will. See, they want to kill innocent life because they think that the Western world and the free world is weak; that when times get tough, we will shirk our duty to those who long for freedom and we'll leave. And I -- anyway.

QUESTION: (OFF-MIKE)

BUSH: No, you can't anymore. Thank you all very much for coming.

KAGAN: We've been listening in at the Rose garden of the White House. President Bush and Australian Prime Minister John Howard meeting there, a close ally of the United States and President Bush. Australia have sent 850 troops to Iraq to help fight with that battle there. Much more on the president, also some of the questions he answered there, including why he has decided to meet with an attorney in case he's a subject and has to be questioned with the CIA leak investigation. More on that with our White House correspondents straight ahead. Also a lot more. This begins, today kicks off a big international month for President Bush and what that means for him. That is all ahead.