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American Morning

Controversy Over Whether Ahmad Chalabi Passed U.S. Intelligence Secrets to Iran; What to Expect From Today's Meeting of OPEC Oil Ministers

Aired June 03, 2004 - 08:00   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.


BILL HEMMER, CNN ANCHOR: Good morning.
Could the president be questioned in the CIA leak matter? The president now seeing private legal advice.

Has the U.S. lost a major intelligence advantage? A former CIA officer talks about the accusations aimed against Ahmad Chalabi.

And severe weather charging across the U.S., rearranging the scenery in a substantial way. All ahead on this AMERICAN MORNING.

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

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning.

Welcome back, everybody.

Some stories making headlines this morning. Lots to cover, of course, with the president. In a few minutes, we're going to focus on the CIA leak probe. The president talking to a private attorney about that, even though he hasn't actually hired an attorney. Jeff Toobin is going to explain what might be going on here.

HEMMER: At this hour, the first full day of testimony starting today in the Scott Peterson murder trial. We'll look at that. Also, the aggressive defense offered by his attorney, Mark Geragos, yesterday -- his opening statements there in northern California.

O'BRIEN: Yes, he started by saying yes, he's a cad, but not a murderer. That was interesting.

Also this morning, the OPEC oil summit that could change the price that you pay for gasoline. Are the oil ministers prepared to tell the United States what it wants to hear? We'll see about that.

HEMMER: We certainly will.

What's happening, Jack -- good morning.

JACK CAFFERTY, CNN CORRESPONDENT: Lots of stuff going on -- Bill, right?

HEMMER: Yes.

CAFFERTY: Yes.

Coming up on the Cafferty File in less than an hour, an unconventional TV ad campaign that gives a whole new meaning to the phrase "The City of Brotherly Love."

And an example of political correctness run amok. There is a move against "ladies night" under way in the saloons in New Jersey.

HEMMER: Whoa Nellie.

CAFFERTY: I mean this will be the worst thing that single guys have ever heard in their entire life. It's a nightmare come true. They're going to start making women pay the same as men. No more discounts.

HEMMER: And we know who lives in Jersey, don't we?

CAFFERTY: Well, you know, it has nothing to do with me.

HEMMER: Jack, right?

CAFFERTY: I'm an old married guy. But all -- I mean ladies night is, I mean, the idea is to -- well, you know what the idea is.

O'BRIEN: It's to bring the guys in.

CAFFERTY: Yes.

The crew obviously knows what that means.

HEMMER: Clearly.

Thank you, Jack.

O'BRIEN: So what's the idea, Jack?

CAFFERTY: Hmmm?

O'BRIEN: What's the idea?

CAFFERTY: Chicks. Get the chicks to come into the bar so the guys can make the moves on the chicks. That's how you got this way.

HEMMER: Need we remind you?

CAFFERTY: In case you had forgotten.

O'BRIEN: You know, it's like even just a two day week is too long.

HEMMER: Welcome back, baby.

O'BRIEN: Moving on (UNINTELLIGIBLE)...

HEMMER: Let's start this hour. The fallout from allegations...

O'BRIEN: ... please.

HEMMER: You got it. I'm here for you.

Ahmad Chalabi, the allegations regarding him leaking top secret U.S. intelligence information to Iran. Word from some Pentagon employees being given polygraphs related to that scandal. And in a letter to the FBI and the attorney general's office, lawyers for Chalabi say flatly, and quoting now, "Dr. Chalabi denies all the charges which have 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."

If the charges are true, how damaging a betrayal is it?

Bob Baer, former CIA officer, with us now from Washington to talk about this.

Good morning, Bob.

Welcome back here.

BOB BAER, FORMER CIA OFFICER: Good morning, Bill.

HEMMER: Were U.S. lives compromised in this?

BAER: Oh, absolutely. Look, we have to keep in mind, you've got to look at this historically. The people that this information was leaked to is the Iranian security ministry. These people were involved in blowing up our embassy in Beirut, blowing up the Marines, kidnapping Americans, attacking the Israeli embassy in Argentina and so on.

This is bad, very bad.

HEMMER: There is a report in the "New York Times" this morning. It says that the Pentagon now under investigation by the FBI. There could be Pentagon employees who are given polygraph tests.

Your reaction to that story?

BAER: It sounds credible. I mean this information was tightly compartmented, as described by the "New York Times." And it's a violation of the law. I mean someone could, in this case, could very easily go to jail.

HEMMER: How likely is it that they'll catch someone?

BAER: That's the hard part. And, you know, in espionage cases, you almost always have to pass paper to get a conviction. But in this case, it's so highly politicized and it is so important to our war in Iraq, finding out what, you know, what Iran is doing, that they just may go forward and try to get somebody for it.

HEMMER: You told some of our producers last night you're extremely disturbed by this. What disturbs you the most?

BAER: Because it's going to cost us American lives. This -- these people are our enemies in Iraq. These people, the Iranians, are targeting Americans in Najaf and Karbala. We are going to lose soldiers if we can't get good intelligence. And if this time we're going around compromising this stuff willy-nilly, we are damaging the intelligence community even further. We can't afford it.

HEMMER: Quickly, Richard Perle yesterday, a longstanding supporter, I believe, of Chalabi, said this. He was quoted in a number of articles yesterday. "The CIA has disliked him" -- meaning Chalabi -- "passionately for a long time and has mounted a campaign against him with some considerable success. I've seen no evidence of improper behavior on his part, no evidence whatsoever."

He suggests that the U.S. is using Chalabi as a scapegoat.

Is there truth to that?

BAER: That's nonsense. It's very clear today in the newspapers, and it's been confirmed by the government, that the referral to the Justice Department is from the National Security Agency. That falls under the Pentagon. The National Security Agency, trust me, does not play politics.

HEMMER: Bob Baer in D.C.

BAER: Thank you.

HEMMER: Thanks, Bob -- Soledad.

O'BRIEN: Well, meanwhile, another leak investigation is ongoing in Washington into who leaked the identity of a covert CIA operative. President Bush has now consulted with an attorney should he face questioning in that federal probe.

Here now to look into the president's legal position is CNN senior legal analyst Jeff Toobin -- good morning.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Good morning.

O'BRIEN: The White House press secretary, Scott McClellan, says that there's no indication that the president himself is a target of this investigation.

So why would he, the president, have discussions with an attorney and why now, when many people think the investigation is sort of toward the tail end and might be wrapping up?

TOOBIN: Well, it is very likely that even if he is not a target of the investigation, which it is, in all indications he is not, he may well be questioned by the investigator about what he was told about any just disclosures of Joseph Wilson's wife's name.

O'BRIEN: So why not White House counsel? TOOBIN: Well, that's -- there is a very important precedent from the Clinton administration. During the Clinton administration in the Lewinsky investigation, it was ruled by the courts that White House counsels and anyone they consult with within the administration do not have a privilege. They work for the United States government. They don't work for individual clients.

So if President Bush had a conversation with the White House counsel in preparation to speak to the prosecutor, the prosecutor could then ask the lawyer what President Bush said.

O'BRIEN: So he'd lose all attorney-client privilege?

TOOBIN: He's lose all attorney-client privilege. So that's why he hires a private lawyer, who he will have a privilege with.

O'BRIEN: Who is this lawyer, Jim Sharp? Not a really familiar name.

TOOBIN: Jim Sharp, he is not part of the very high profile group of Washington lawyers. He is a well known Washington lawyer, however. He represented -- I knew him because in the late '80s in the Iran- Contra investigation, he represented Richard Secord, who was one of the figures there. I was involved in that investigation. He's had a successful white collar crime practice for a long time, a very solid lawyer, not flashy, not famous, but not a huge surprise that the president would hire someone like him.

O'BRIEN: So indications that they're in discussions is, I think, sort of the way it's been phrased.

Does that mean that the president expects, in fact, he will be called to testify at some point?

TOOBIN: I think, knowing Pat Fitzgerald, the prosecutor in this case, who's a very thorough, conscientious prosecutor, it would be unlikely to finish this case without talking to President Bush. It would make sense for him to talk to President Bush.

But you wouldn't talk to him until the end of the investigation. This seems to be towards the end. So it all seems to make sense that he's going to be questioned there. Not clear whether it will be in the grand jury -- probably not -- or just a private office interview.

O'BRIEN: So then what is Jim Sharp doing? What's his role going to be, to advise the president? To run him through sort of pretend questions that he might be asked, that kind of thing?

TOOBIN: That's right. Any time you're going to be questioned by law enforcement, it's a good idea to have a lawyer there to talk about what to expect, to give you advice about what kinds of questions you should answer, what you shouldn't answer. One thing lawyers always say is, you know, answer what you know. Don't speculate about what other people may be thinking. Just say this is what I saw, this is what I said, this is what I heard, not well, he must have meant X or I must have been thinking Y. Just keep your answers narrow. Those are the kinds of advice that lawyers give in circumstances like that.

O'BRIEN: If, indeed, they do figure out who is the one who revealed the identity of Valerie Plame, what's the punishment, potentially?

TOOBIN: It's a serious felony, prison time. I mean this is a serious offense, if it can be disclosed. But as with the Chalabi investigation we were just talking about, leak investigations in Washington often take place, but they are almost never successful and prosecutions are rare.

O'BRIEN: Jeff Toobin ending on sort of a downer of a note...

TOOBIN: Well...

O'BRIEN: But thank you very much.

I hear you.

TOOBIN: ... it depends on your perspective.

O'BRIEN: The true, you know, that's the facts.

TOOBIN: Right.

O'BRIEN: Thanks very much.

TOOBIN: OK.

O'BRIEN: Appreciate it -- Bill.

HEMMER: Soledad, a key decision being made in Beirut, Lebanon that may be felt in places like Baltimore and Boston and Birmingham. It's all about oil, how much is being produced.

Beirut bureau chief Brent Sadler is covering that for us -- Brent, good afternoon there.

BRENT SADLER, CNN CORRESPONDENT: Good afternoon from here, Bill.

First of all, the OPEC ministers, oil ministers, are meeting here, 11 nations, working on a crucial formula to increase oil output. A positive announcement expected in the next two or three hours or so.

But don't expect any quick fix to the problem of skyrocketing fuel prices. And motorists, do not expect those high prices at the gas pumps to come down any time soon.

(BEGIN VIDEOTAPE)

SADLER (voice-over): In Beirut, all eyes are on Saudi Arabia's oil minister, Ali Al-Naimi, signaling support for an OPEC increase in oil production. But he warns that surging prices are being driven higher not just by supply shortages, but what he calls an exaggerated perception that Saudi supplies could be seriously disrupted by terrorist action. ALI AL-NAIMI, SAUDI OIL MINISTER: You may call it terrorism. You may call it expectation of destruction of oil and gas facilities in producing areas and so forth. But increasing production does not help this perception.

SADLER: Saudi Arabia is like the world's central bank of oil, sitting on reserves of 260 billion barrels, heavily protected and so far untouched by terrorism. But terrorist threats to those supplies intensified after Saturday's attacks on foreign workers that left 22 people dead in the Saudi oil hub of Khobar. Oil ministers remain jittery and the so-called fear factor premium, say oil experts, has added as much as $10 to the price of a barrel of oil. Now, oil ministers are trying to cool an over heated market by promising to pump more oil and trying to persuade customers that Saudi Arabia can block terrorist attacks.

(END VIDEOTAPE)

SADLER: So, expect an announcement from here within the next two or three hours or so for more oil to come from OPEC, at least two and a half million barrels per day. That's what analysts would like to see. Anything less than that might knock the markets yet again. That's the high fuel prices. Expect those to continue for some time to come -- Bill.

HEMMER: Brent Sadler, thanks, live in Beirut -- Soledad.

O'BRIEN: Some revealing new insight on how the prison abuse was able to go on at Iraq's Abu Ghraib Prison.

Specialist David Monath was a reservist and intelligence analyst at the prison until February.

Last night, he spoke with Paula Zahn. And he says there was pressure for soldiers to get as much intelligence as possible from the prisoners.

(BEGIN VIDEO CLIP FROM CNN'S "PAULA ZAHN NOW")

SPEC. DAVID MONATH, WORKED AT ABU GHRAIB PRISON: Direct evidence from people that you may have already talked to, individuals such as Colonel Pappas, Major General Barbara Fast, who was chief of intelligence for the theater. They were telling us to put out information as soon as it was available in any form, actually, regardless of whether or not it was finalized or in any way corroborated.

PAULA ZAHN, HOST: So was it the pressure of performance or were you told that if you didn't get X amount of intelligence that you were going to lose your job or...

MONATH: One of my fellow soldiers on one of General Fast's visits to Abu Ghraib heard her say that she was very interested in quantity, not quality. That's the kind of thing that you never expect to hear. You just see people act that out. But she directly said that. And so we were under a tremendous amount of pressure and the people above us. And the interrogators were taking very rough notes that they had just made sketches of in the interrogation booths, and were being told by Colonel Pappas, ordered to disseminate this as actionable intelligence, meaning that soldiers should go out and conduct operations based on that intelligence.

(END VIDEO CLIP)

O'BRIEN: Meantime, watchdog groups, including the ACLU, accuse the Bush administration of illegally withholding records about the treatment of the prisoners at Abu Ghraib Prison -- Bill.

HEMMER: About 13 minutes past the hour.

Weather-wise, work crews have been clearing railroad tracks in Kansas. Strong winds there derailed more than 60 train cars yesterday. What a scene that was. The empty grain cars easily toppled by the wind. Three locomotives stayed on the tracks. They were strong enough there and heavy enough. Two rail lines affected. No injuries, luckily, as the rain came down and the winds came through.

(WEATHER REPORT)

O'BRIEN: It is 14 minutes past the hour. That means it's time for a look at some of the other stories making headlines today with Heidi Collins -- hi, Heidi.

HEIDI COLLINS, CNN ANCHOR: Hello to you guys.

HEMMER: Good morning.

COLLINS: Thanks so much for that.

We want to get everybody to Iraq right away, though, where U.S. forces are striking back at insurgents believed to be behind mortar attacks on a U.S. base. Military officials say some 30 insurgents in Kufa have been killed. The Iraqi city is considered a stronghold of radical Shiite cleric Muqtada al-Sadr. Four American troops were slightly injured in the firefight.

A Syrian man listed among the FBI's list of 30 top terror suspects is now free. Nabil Al-Marabh is suspected of plotting terrorist attacks in several U.S. cities. The Justice Department told the Associated Press despite evidence against Marabh, it couldn't take the case to court. Justice officials say an indictment could have compromised intelligence sources. Amarab has been deported to Syria.

President Bush's war time funding request of $25 billion has been approved by the Senate. The Senate voted unanimously to boost the funds for operations in Iraq and Afghanistan. But the president will not be able to spend all of the money without the law makers' approval. A House committee approved even tighter restrictions on the funds. But the White House says the House restrictions go too far.

Police in Syracuse, New York say they may be dealing with a serial killer. The bodies of two women were discovered at an apartment building where he lived. Nicholas Wiley has been charged with the murders now. Wiley, who has an extensive criminal record, was released from prison earlier this year. Police say they have no reason to believe more victims may be found.

And the horse many think will be the first Triple Crown winner in 26 years taking on Manhattan. Smarty Jones arrived in the Big Apple after a police escort from Philadelphia. Quite the little entourage there. A nice bus. Actually, that would be a trailer. Anyway, he'll start from the outside post in a field of nine in Saturday's Belmont stakes. And just in case you're wondering, we were talking about this before, odds makers say that he is the 2-5 favorite so.

O'BRIEN: He's in New York City?

COLLINS: Um-hmm.

HEMMER: Well, no, he's out at the track, Belmont, Long Island, Elmont, New York.

O'BRIEN: Oh, OK.

COLLINS: Which there's always a lot of discussion about, is that New Jersey or New York, actually? It is New York.

HEMMER: Yes.

COLLINS: So they tell me.

HEMMER: Clearly.

O'BRIEN: I just had the idea he was going to be in Manhattan somewhere.

HEMMER: Welcome.

O'BRIEN: (UNINTELLIGIBLE).

COLLINS: Yes, like I really know. I mean I was kind of thinking that.

O'BRIEN: We can all go by and visit Smarty in midtown later on, maybe showing him off and...

HEMMER: (UNINTELLIGIBLE).

COLLINS: Hey, there were elephants when the circus was here going around.

O'BRIEN: That's true.

HEMMER: There you go.

O'BRIEN: And you know when they have it at Radio City they bring camels through.

HEMMER: Camels, absolutely. O'BRIEN: Anything could happen.

All right, Heidi, thanks.

CAFFERTY: There's a lot of donkeys around some days, too.

HEMMER: That's right. Daily.

What's up?

CAFFERTY: What's up is the following. Funny you should ask. In a speech at the Air Force Academy graduation yesterday, the president compared World War 2 to the war on terror. He talked about similarities between September 11 and Pearl Harbor. The president said, "This is not the time for impatience or pessimism and that Americans must show the same courage of past generations."

So we thought we'd ask is the global war on terror this generation's World War 2?

As promised, the letter from Adam in Florida: "Comparing World War 2 to the war in Iraq clearly shows this president's utter lack of historical acumen. The comparison would work better if after Pearl Harbor, the United States then attacked Norway."

Somebody wrote in and said I should apologize to Norway. How do you do that? Is Norway -- I'm very sorry, Norway.

HEMMER: You know, we're on prime time in Norway.

O'BRIEN: You did it. You're done. You're covered, Jack.

CAFFERTY: Yes. And they said I should apologize to you, too, but I refuse to.

O'BRIEN: Actually, that would be good. Go ahead.

CAFFERTY: Walter in Williamson, Michigan: "Japan and Germany started World War 2. George W. Bush started the war in Iraq. Comparing his personal war with our defense of the free world 60 years ago insults the memory of the millions who died for a noble cause."

John disagrees. "Without a doubt," he writes, "the war on terror is this generation's World War 2. A world ruled by radical Muslims would be far worse than Japanese imperialism would have ever been."

And Marcum says: "September 11 may well be this generation's Pearl Harbor. The war on terror may well be our World War 2. But Bush is certainly no Roosevelt. Perhaps he is this generation's Herbert Hoover and soon he can look forward to having vacuums named after him because of his ability to suck the life out of our economy."

O'BRIEN: Ooh.

CAFFERTY: Marcum has harsh words.

O'BRIEN: Clearly.

CAFFERTY: That's cruel.

O'BRIEN: He's not a fan. Wow.

CAFFERTY: I like the thing about Norway. It's funny.

O'BRIEN: Yes, that was.

CAFFERTY: Sorry, Norway.

O'BRIEN: And? Anybody else you want to apologize to?

CAFFERTY: Yes, no, I made a reference to Soledad's pregnancy and somebody wrote in...

O'BRIEN: No, you call me skinny every day, which is (UNINTELLIGIBLE)...

CAFFERTY: Well, that's -- no, they wanted me to apologize for the...

O'BRIEN: Oh, for something else?

CAFFERTY: For something else, yes.

O'BRIEN: Oh, yes, talking about my sex life on TV?

CAFFERTY: Yes.

O'BRIEN: Yes, that.

CAFFERTY: Let me just apologize to everybody who wants an apology, all right? Now, don't ask anymore. Now I'm done. That's -- I apologize...

O'BRIEN: Thank you. I accept.

CAFFERTY: Good.

O'BRIEN: Thank you, Jack.

CAFFERTY: You're most welcome. Now leave me alone.

O'BRIEN: All right.

The competition, as everyone knows, is tough at the 77th Annual Scripps National Spelling Bee in Washington, D.C. They start off with 265 competitors. We're down to only 46 spellers heading into the finals today. So, guess what, Billy?

HEMMER: Yes.

O'BRIEN: We're going to do our own little spelling bee right here this morning. OK, so, I'd like you to spell this word. I'm going to give it to you... HEMMER: I'm not supposed to look at that prompter over there.

O'BRIEN: We took it out of prompter, don't worry.

HEMMER: OK.

O'BRIEN: I'm going to give you a sentence...

HEMMER: All right, did I ever tell you how great it is to have you back?

O'BRIEN: Blah, blah, blah. I'm going to give it to you in a sentence. You ready?

HEMMER: Yes.

O'BRIEN: Eisegesis. The report -- and here's the sentence. The report included his eisegesis of the forensic evidence.

HEMMER: I would say SOLEDAD.

O'BRIEN: I'm going to give you another chance to really try, Billy.

HEMMER: Eisegesis?

O'BRIEN: Eisegesis. It's usually, it's talked about, the interpretation of like a biblical text.

HEMMER: I've got no clue.

O'BRIEN: So what letter does it start with?

CAFFERTY: It's only a three hour show.

HEMMER: I.

O'BRIEN: I've got him -- wrong.

HEMMER: All right, E.

O'BRIEN: Anybody want to help him out?

CAFFERTY: I can do it.

HEMMER: Go ahead.

CAFFERTY: I-S-E-E-J-E-S-U-S-. I see Jesus.

HEMMER: Oh, yes!

O'BRIEN: No.

Let's watch the tape and see how the young man who was able to take -- tackle this word.

(BEGIN VIDEO CLIP)

UNIDENTIFIED CHILD: May I please have the definition?

UNIDENTIFIED MALE: The interpretation of a text, as of the bible, by reading into it one's own ideas.

UNIDENTIFIED CHILD: May I please have the language of origin?

UNIDENTIFIED MALE: Greek.

UNIDENTIFIED CHILD: Eisegesis -- E-I-S-E-G-E-S-I-S, Eisegesis.

(END VIDEO CLIP)

HEMMER: Oh, no. He's missing a vowel there, too. There should be something between the S and the G.

O'BRIEN: E-I...

HEMMER: Eisegesis, right? Is that what you said?

O'BRIEN: S-E-G-E-S-I-S.

(CROSSTALK)

O'BRIEN: So he got it right.

CAFFERTY: Well, that's it. We misspelled it on the thing.

HEMMER: We spelled it wrong. Dorks.

O'BRIEN: Oh, the people...

CAFFERTY: That's good.

O'BRIEN: I have it right on my paper here.

HEMMER: That's good.

O'BRIEN: And that young man, what is he, 12, got it right.

HEMMER: I saw Jesus.

O'BRIEN: I think your problem (UNINTELLIGIBLE) ask (UNINTELLIGIBLE).

CAFFERTY: That's amazing. That's one to go -- if I ever write the book, that'll be in it. And one day we did a thing on the National Spelling Bee and misspelled the winning word on our bottom graphic.

O'BRIEN: Well, the other day -- I think you were off, but we put, what was it, Atlanta? We put in...

HEMMER: Could we play again, please?

O'BRIEN: We put it in in the wrong state.

You want to do another one?

HEMMER: No.

O'BRIEN: Sure. Can we do another one?

Oh, we're going to do another one later on in the show.

HEMMER: Later? Do one later.

O'BRIEN: And what you want to do is ask...

HEMMER: Stay tuned, folks, really.

O'BRIEN: ... the country of origin.

HEMMER: You're not going to want to miss this.

O'BRIEN: I thought that kid was cute.

HEMMER: Greece.

O'BRIEN: All right, moving on.

HEMMER: Yes.

O'BRIEN: The final round of the National Spelling Bee concludes today. The winner is going to get 17 grand.

HEMMER: Yup.

O'BRIEN: Cashola. We're going to speak with the winner tomorrow morning.

HEMMER: In a moment here...

O'BRIEN: And it's not you.

HEMMER: That's right.

The warning signs for heart disease and diabetes. An alarming number of kids already have them. Sanjay stops back in a moment to look at what you need to know in a moment here.

O'BRIEN: Also, some stunning statements by Scott Peterson's lawyer, Mark Geragos. Why he says the condition of the Peterson pregnancy proves his client's innocence.

HEMMER: Also, it's a Thursday. Political Pop comes your way. Republicans say John Kerry is not your average Joe. So why are they playing games that prove it online? Kerryopoly in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK) O'BRIEN: More testimony is scheduled today in the Scott Peterson trial. In his opening statement yesterday, defense lawyer Mark Geragos contended that Scott Peterson is "stone cold innocent" in the death of his wife Laci and their unborn child. And he claimed the tape found around the neck of the child will help prove his case.

Ted Rowlands is live for us this morning in Redwood City, California -- Ted, good morning to you.

And let's start with that claim, and others made by Geragos.

TED ROWLANDS, CNN CORRESPONDENT: Well, it has to do with a photograph -- two photographs of the remains of the child. And it depicts a piece of what appears to be clear tape wrapped around the child's neck and then underneath around the child and around the arm. And then it is tied in what appears to be a bow. It's going to be a very central part of this case.

The prosecution says that that tape was simply debris in the San Francisco Bay, that was wrapped around the child as the child was in the Bay and was eventually pushed off onto the shore during a storm.

The defense, however, says that it is clear evidence that the child was handled outside of its mother's womb, Laci Peterson, and if that fact is true, you have to say that Scott Peterson is not guilty because he is not being charged with mutilating his wife by any means.

It's going to be a very central part of this case.

There is also a rectangular piece of debris or of something on the baby's ear, which is also in that photograph. The prosecution says it is kelp. The defense says it is electrical tape. It is symmetrical in that it is perfectly rectangular. The jury is going to have to decide which way to go. Both sides will have experts talking about these two photographs.

O'BRIEN: Right out of the box, Ted, you definitely get the sense that Geragos is really going to toe the line in his defense for his client.

What do you expect today? What do you expect to happen today?

ROWLANDS: Today it's expected that the prosecution will continue to build the scene around the time that Laci was first reported missing. Yesterday we heard from the maid who cleaned the house the day before and it really was just a set up to where the mop was and other items about the blinds in the house.

But today we should probably learn more about what happened after Scott Peterson reported that his wife was missing. There is a neighbor that said that he told her he was golf and not fishing, one of a couple of people that he said that to. That's most likely where this is going to go.

The prosecution, this is their style, is to be very methodical. And that is why this is going to take up to five months. They're going to go piecemeal through this and probably in chronological order and it's going to start in earnest today. They only heard -- they only had about an hour yesterday of testimony.

O'BRIEN: Ted Rowlands for us this morning.

Ted, thanks.

We'll look forward to seeing what happens tomorrow -- Bill.

HEMMER: In a moment here, feeling the pinch at the pump? If you are, relief may be on the way. Critical news in a moment. We'll mind your business on that.

Also, the makers of this popular anti-depressant facing a lawsuit. We'll tell you what when we continue, after this.

(COMMERCIAL BREAK)

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Aired June 3, 2004 - 08:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning.
Could the president be questioned in the CIA leak matter? The president now seeing private legal advice.

Has the U.S. lost a major intelligence advantage? A former CIA officer talks about the accusations aimed against Ahmad Chalabi.

And severe weather charging across the U.S., rearranging the scenery in a substantial way. All ahead on this AMERICAN MORNING.

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

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning.

Welcome back, everybody.

Some stories making headlines this morning. Lots to cover, of course, with the president. In a few minutes, we're going to focus on the CIA leak probe. The president talking to a private attorney about that, even though he hasn't actually hired an attorney. Jeff Toobin is going to explain what might be going on here.

HEMMER: At this hour, the first full day of testimony starting today in the Scott Peterson murder trial. We'll look at that. Also, the aggressive defense offered by his attorney, Mark Geragos, yesterday -- his opening statements there in northern California.

O'BRIEN: Yes, he started by saying yes, he's a cad, but not a murderer. That was interesting.

Also this morning, the OPEC oil summit that could change the price that you pay for gasoline. Are the oil ministers prepared to tell the United States what it wants to hear? We'll see about that.

HEMMER: We certainly will.

What's happening, Jack -- good morning.

JACK CAFFERTY, CNN CORRESPONDENT: Lots of stuff going on -- Bill, right?

HEMMER: Yes.

CAFFERTY: Yes.

Coming up on the Cafferty File in less than an hour, an unconventional TV ad campaign that gives a whole new meaning to the phrase "The City of Brotherly Love."

And an example of political correctness run amok. There is a move against "ladies night" under way in the saloons in New Jersey.

HEMMER: Whoa Nellie.

CAFFERTY: I mean this will be the worst thing that single guys have ever heard in their entire life. It's a nightmare come true. They're going to start making women pay the same as men. No more discounts.

HEMMER: And we know who lives in Jersey, don't we?

CAFFERTY: Well, you know, it has nothing to do with me.

HEMMER: Jack, right?

CAFFERTY: I'm an old married guy. But all -- I mean ladies night is, I mean, the idea is to -- well, you know what the idea is.

O'BRIEN: It's to bring the guys in.

CAFFERTY: Yes.

The crew obviously knows what that means.

HEMMER: Clearly.

Thank you, Jack.

O'BRIEN: So what's the idea, Jack?

CAFFERTY: Hmmm?

O'BRIEN: What's the idea?

CAFFERTY: Chicks. Get the chicks to come into the bar so the guys can make the moves on the chicks. That's how you got this way.

HEMMER: Need we remind you?

CAFFERTY: In case you had forgotten.

O'BRIEN: You know, it's like even just a two day week is too long.

HEMMER: Welcome back, baby.

O'BRIEN: Moving on (UNINTELLIGIBLE)...

HEMMER: Let's start this hour. The fallout from allegations...

O'BRIEN: ... please.

HEMMER: You got it. I'm here for you.

Ahmad Chalabi, the allegations regarding him leaking top secret U.S. intelligence information to Iran. Word from some Pentagon employees being given polygraphs related to that scandal. And in a letter to the FBI and the attorney general's office, lawyers for Chalabi say flatly, and quoting now, "Dr. Chalabi denies all the charges which have 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."

If the charges are true, how damaging a betrayal is it?

Bob Baer, former CIA officer, with us now from Washington to talk about this.

Good morning, Bob.

Welcome back here.

BOB BAER, FORMER CIA OFFICER: Good morning, Bill.

HEMMER: Were U.S. lives compromised in this?

BAER: Oh, absolutely. Look, we have to keep in mind, you've got to look at this historically. The people that this information was leaked to is the Iranian security ministry. These people were involved in blowing up our embassy in Beirut, blowing up the Marines, kidnapping Americans, attacking the Israeli embassy in Argentina and so on.

This is bad, very bad.

HEMMER: There is a report in the "New York Times" this morning. It says that the Pentagon now under investigation by the FBI. There could be Pentagon employees who are given polygraph tests.

Your reaction to that story?

BAER: It sounds credible. I mean this information was tightly compartmented, as described by the "New York Times." And it's a violation of the law. I mean someone could, in this case, could very easily go to jail.

HEMMER: How likely is it that they'll catch someone?

BAER: That's the hard part. And, you know, in espionage cases, you almost always have to pass paper to get a conviction. But in this case, it's so highly politicized and it is so important to our war in Iraq, finding out what, you know, what Iran is doing, that they just may go forward and try to get somebody for it.

HEMMER: You told some of our producers last night you're extremely disturbed by this. What disturbs you the most?

BAER: Because it's going to cost us American lives. This -- these people are our enemies in Iraq. These people, the Iranians, are targeting Americans in Najaf and Karbala. We are going to lose soldiers if we can't get good intelligence. And if this time we're going around compromising this stuff willy-nilly, we are damaging the intelligence community even further. We can't afford it.

HEMMER: Quickly, Richard Perle yesterday, a longstanding supporter, I believe, of Chalabi, said this. He was quoted in a number of articles yesterday. "The CIA has disliked him" -- meaning Chalabi -- "passionately for a long time and has mounted a campaign against him with some considerable success. I've seen no evidence of improper behavior on his part, no evidence whatsoever."

He suggests that the U.S. is using Chalabi as a scapegoat.

Is there truth to that?

BAER: That's nonsense. It's very clear today in the newspapers, and it's been confirmed by the government, that the referral to the Justice Department is from the National Security Agency. That falls under the Pentagon. The National Security Agency, trust me, does not play politics.

HEMMER: Bob Baer in D.C.

BAER: Thank you.

HEMMER: Thanks, Bob -- Soledad.

O'BRIEN: Well, meanwhile, another leak investigation is ongoing in Washington into who leaked the identity of a covert CIA operative. President Bush has now consulted with an attorney should he face questioning in that federal probe.

Here now to look into the president's legal position is CNN senior legal analyst Jeff Toobin -- good morning.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Good morning.

O'BRIEN: The White House press secretary, Scott McClellan, says that there's no indication that the president himself is a target of this investigation.

So why would he, the president, have discussions with an attorney and why now, when many people think the investigation is sort of toward the tail end and might be wrapping up?

TOOBIN: Well, it is very likely that even if he is not a target of the investigation, which it is, in all indications he is not, he may well be questioned by the investigator about what he was told about any just disclosures of Joseph Wilson's wife's name.

O'BRIEN: So why not White House counsel? TOOBIN: Well, that's -- there is a very important precedent from the Clinton administration. During the Clinton administration in the Lewinsky investigation, it was ruled by the courts that White House counsels and anyone they consult with within the administration do not have a privilege. They work for the United States government. They don't work for individual clients.

So if President Bush had a conversation with the White House counsel in preparation to speak to the prosecutor, the prosecutor could then ask the lawyer what President Bush said.

O'BRIEN: So he'd lose all attorney-client privilege?

TOOBIN: He's lose all attorney-client privilege. So that's why he hires a private lawyer, who he will have a privilege with.

O'BRIEN: Who is this lawyer, Jim Sharp? Not a really familiar name.

TOOBIN: Jim Sharp, he is not part of the very high profile group of Washington lawyers. He is a well known Washington lawyer, however. He represented -- I knew him because in the late '80s in the Iran- Contra investigation, he represented Richard Secord, who was one of the figures there. I was involved in that investigation. He's had a successful white collar crime practice for a long time, a very solid lawyer, not flashy, not famous, but not a huge surprise that the president would hire someone like him.

O'BRIEN: So indications that they're in discussions is, I think, sort of the way it's been phrased.

Does that mean that the president expects, in fact, he will be called to testify at some point?

TOOBIN: I think, knowing Pat Fitzgerald, the prosecutor in this case, who's a very thorough, conscientious prosecutor, it would be unlikely to finish this case without talking to President Bush. It would make sense for him to talk to President Bush.

But you wouldn't talk to him until the end of the investigation. This seems to be towards the end. So it all seems to make sense that he's going to be questioned there. Not clear whether it will be in the grand jury -- probably not -- or just a private office interview.

O'BRIEN: So then what is Jim Sharp doing? What's his role going to be, to advise the president? To run him through sort of pretend questions that he might be asked, that kind of thing?

TOOBIN: That's right. Any time you're going to be questioned by law enforcement, it's a good idea to have a lawyer there to talk about what to expect, to give you advice about what kinds of questions you should answer, what you shouldn't answer. One thing lawyers always say is, you know, answer what you know. Don't speculate about what other people may be thinking. Just say this is what I saw, this is what I said, this is what I heard, not well, he must have meant X or I must have been thinking Y. Just keep your answers narrow. Those are the kinds of advice that lawyers give in circumstances like that.

O'BRIEN: If, indeed, they do figure out who is the one who revealed the identity of Valerie Plame, what's the punishment, potentially?

TOOBIN: It's a serious felony, prison time. I mean this is a serious offense, if it can be disclosed. But as with the Chalabi investigation we were just talking about, leak investigations in Washington often take place, but they are almost never successful and prosecutions are rare.

O'BRIEN: Jeff Toobin ending on sort of a downer of a note...

TOOBIN: Well...

O'BRIEN: But thank you very much.

I hear you.

TOOBIN: ... it depends on your perspective.

O'BRIEN: The true, you know, that's the facts.

TOOBIN: Right.

O'BRIEN: Thanks very much.

TOOBIN: OK.

O'BRIEN: Appreciate it -- Bill.

HEMMER: Soledad, a key decision being made in Beirut, Lebanon that may be felt in places like Baltimore and Boston and Birmingham. It's all about oil, how much is being produced.

Beirut bureau chief Brent Sadler is covering that for us -- Brent, good afternoon there.

BRENT SADLER, CNN CORRESPONDENT: Good afternoon from here, Bill.

First of all, the OPEC ministers, oil ministers, are meeting here, 11 nations, working on a crucial formula to increase oil output. A positive announcement expected in the next two or three hours or so.

But don't expect any quick fix to the problem of skyrocketing fuel prices. And motorists, do not expect those high prices at the gas pumps to come down any time soon.

(BEGIN VIDEOTAPE)

SADLER (voice-over): In Beirut, all eyes are on Saudi Arabia's oil minister, Ali Al-Naimi, signaling support for an OPEC increase in oil production. But he warns that surging prices are being driven higher not just by supply shortages, but what he calls an exaggerated perception that Saudi supplies could be seriously disrupted by terrorist action. ALI AL-NAIMI, SAUDI OIL MINISTER: You may call it terrorism. You may call it expectation of destruction of oil and gas facilities in producing areas and so forth. But increasing production does not help this perception.

SADLER: Saudi Arabia is like the world's central bank of oil, sitting on reserves of 260 billion barrels, heavily protected and so far untouched by terrorism. But terrorist threats to those supplies intensified after Saturday's attacks on foreign workers that left 22 people dead in the Saudi oil hub of Khobar. Oil ministers remain jittery and the so-called fear factor premium, say oil experts, has added as much as $10 to the price of a barrel of oil. Now, oil ministers are trying to cool an over heated market by promising to pump more oil and trying to persuade customers that Saudi Arabia can block terrorist attacks.

(END VIDEOTAPE)

SADLER: So, expect an announcement from here within the next two or three hours or so for more oil to come from OPEC, at least two and a half million barrels per day. That's what analysts would like to see. Anything less than that might knock the markets yet again. That's the high fuel prices. Expect those to continue for some time to come -- Bill.

HEMMER: Brent Sadler, thanks, live in Beirut -- Soledad.

O'BRIEN: Some revealing new insight on how the prison abuse was able to go on at Iraq's Abu Ghraib Prison.

Specialist David Monath was a reservist and intelligence analyst at the prison until February.

Last night, he spoke with Paula Zahn. And he says there was pressure for soldiers to get as much intelligence as possible from the prisoners.

(BEGIN VIDEO CLIP FROM CNN'S "PAULA ZAHN NOW")

SPEC. DAVID MONATH, WORKED AT ABU GHRAIB PRISON: Direct evidence from people that you may have already talked to, individuals such as Colonel Pappas, Major General Barbara Fast, who was chief of intelligence for the theater. They were telling us to put out information as soon as it was available in any form, actually, regardless of whether or not it was finalized or in any way corroborated.

PAULA ZAHN, HOST: So was it the pressure of performance or were you told that if you didn't get X amount of intelligence that you were going to lose your job or...

MONATH: One of my fellow soldiers on one of General Fast's visits to Abu Ghraib heard her say that she was very interested in quantity, not quality. That's the kind of thing that you never expect to hear. You just see people act that out. But she directly said that. And so we were under a tremendous amount of pressure and the people above us. And the interrogators were taking very rough notes that they had just made sketches of in the interrogation booths, and were being told by Colonel Pappas, ordered to disseminate this as actionable intelligence, meaning that soldiers should go out and conduct operations based on that intelligence.

(END VIDEO CLIP)

O'BRIEN: Meantime, watchdog groups, including the ACLU, accuse the Bush administration of illegally withholding records about the treatment of the prisoners at Abu Ghraib Prison -- Bill.

HEMMER: About 13 minutes past the hour.

Weather-wise, work crews have been clearing railroad tracks in Kansas. Strong winds there derailed more than 60 train cars yesterday. What a scene that was. The empty grain cars easily toppled by the wind. Three locomotives stayed on the tracks. They were strong enough there and heavy enough. Two rail lines affected. No injuries, luckily, as the rain came down and the winds came through.

(WEATHER REPORT)

O'BRIEN: It is 14 minutes past the hour. That means it's time for a look at some of the other stories making headlines today with Heidi Collins -- hi, Heidi.

HEIDI COLLINS, CNN ANCHOR: Hello to you guys.

HEMMER: Good morning.

COLLINS: Thanks so much for that.

We want to get everybody to Iraq right away, though, where U.S. forces are striking back at insurgents believed to be behind mortar attacks on a U.S. base. Military officials say some 30 insurgents in Kufa have been killed. The Iraqi city is considered a stronghold of radical Shiite cleric Muqtada al-Sadr. Four American troops were slightly injured in the firefight.

A Syrian man listed among the FBI's list of 30 top terror suspects is now free. Nabil Al-Marabh is suspected of plotting terrorist attacks in several U.S. cities. The Justice Department told the Associated Press despite evidence against Marabh, it couldn't take the case to court. Justice officials say an indictment could have compromised intelligence sources. Amarab has been deported to Syria.

President Bush's war time funding request of $25 billion has been approved by the Senate. The Senate voted unanimously to boost the funds for operations in Iraq and Afghanistan. But the president will not be able to spend all of the money without the law makers' approval. A House committee approved even tighter restrictions on the funds. But the White House says the House restrictions go too far.

Police in Syracuse, New York say they may be dealing with a serial killer. The bodies of two women were discovered at an apartment building where he lived. Nicholas Wiley has been charged with the murders now. Wiley, who has an extensive criminal record, was released from prison earlier this year. Police say they have no reason to believe more victims may be found.

And the horse many think will be the first Triple Crown winner in 26 years taking on Manhattan. Smarty Jones arrived in the Big Apple after a police escort from Philadelphia. Quite the little entourage there. A nice bus. Actually, that would be a trailer. Anyway, he'll start from the outside post in a field of nine in Saturday's Belmont stakes. And just in case you're wondering, we were talking about this before, odds makers say that he is the 2-5 favorite so.

O'BRIEN: He's in New York City?

COLLINS: Um-hmm.

HEMMER: Well, no, he's out at the track, Belmont, Long Island, Elmont, New York.

O'BRIEN: Oh, OK.

COLLINS: Which there's always a lot of discussion about, is that New Jersey or New York, actually? It is New York.

HEMMER: Yes.

COLLINS: So they tell me.

HEMMER: Clearly.

O'BRIEN: I just had the idea he was going to be in Manhattan somewhere.

HEMMER: Welcome.

O'BRIEN: (UNINTELLIGIBLE).

COLLINS: Yes, like I really know. I mean I was kind of thinking that.

O'BRIEN: We can all go by and visit Smarty in midtown later on, maybe showing him off and...

HEMMER: (UNINTELLIGIBLE).

COLLINS: Hey, there were elephants when the circus was here going around.

O'BRIEN: That's true.

HEMMER: There you go.

O'BRIEN: And you know when they have it at Radio City they bring camels through.

HEMMER: Camels, absolutely. O'BRIEN: Anything could happen.

All right, Heidi, thanks.

CAFFERTY: There's a lot of donkeys around some days, too.

HEMMER: That's right. Daily.

What's up?

CAFFERTY: What's up is the following. Funny you should ask. In a speech at the Air Force Academy graduation yesterday, the president compared World War 2 to the war on terror. He talked about similarities between September 11 and Pearl Harbor. The president said, "This is not the time for impatience or pessimism and that Americans must show the same courage of past generations."

So we thought we'd ask is the global war on terror this generation's World War 2?

As promised, the letter from Adam in Florida: "Comparing World War 2 to the war in Iraq clearly shows this president's utter lack of historical acumen. The comparison would work better if after Pearl Harbor, the United States then attacked Norway."

Somebody wrote in and said I should apologize to Norway. How do you do that? Is Norway -- I'm very sorry, Norway.

HEMMER: You know, we're on prime time in Norway.

O'BRIEN: You did it. You're done. You're covered, Jack.

CAFFERTY: Yes. And they said I should apologize to you, too, but I refuse to.

O'BRIEN: Actually, that would be good. Go ahead.

CAFFERTY: Walter in Williamson, Michigan: "Japan and Germany started World War 2. George W. Bush started the war in Iraq. Comparing his personal war with our defense of the free world 60 years ago insults the memory of the millions who died for a noble cause."

John disagrees. "Without a doubt," he writes, "the war on terror is this generation's World War 2. A world ruled by radical Muslims would be far worse than Japanese imperialism would have ever been."

And Marcum says: "September 11 may well be this generation's Pearl Harbor. The war on terror may well be our World War 2. But Bush is certainly no Roosevelt. Perhaps he is this generation's Herbert Hoover and soon he can look forward to having vacuums named after him because of his ability to suck the life out of our economy."

O'BRIEN: Ooh.

CAFFERTY: Marcum has harsh words.

O'BRIEN: Clearly.

CAFFERTY: That's cruel.

O'BRIEN: He's not a fan. Wow.

CAFFERTY: I like the thing about Norway. It's funny.

O'BRIEN: Yes, that was.

CAFFERTY: Sorry, Norway.

O'BRIEN: And? Anybody else you want to apologize to?

CAFFERTY: Yes, no, I made a reference to Soledad's pregnancy and somebody wrote in...

O'BRIEN: No, you call me skinny every day, which is (UNINTELLIGIBLE)...

CAFFERTY: Well, that's -- no, they wanted me to apologize for the...

O'BRIEN: Oh, for something else?

CAFFERTY: For something else, yes.

O'BRIEN: Oh, yes, talking about my sex life on TV?

CAFFERTY: Yes.

O'BRIEN: Yes, that.

CAFFERTY: Let me just apologize to everybody who wants an apology, all right? Now, don't ask anymore. Now I'm done. That's -- I apologize...

O'BRIEN: Thank you. I accept.

CAFFERTY: Good.

O'BRIEN: Thank you, Jack.

CAFFERTY: You're most welcome. Now leave me alone.

O'BRIEN: All right.

The competition, as everyone knows, is tough at the 77th Annual Scripps National Spelling Bee in Washington, D.C. They start off with 265 competitors. We're down to only 46 spellers heading into the finals today. So, guess what, Billy?

HEMMER: Yes.

O'BRIEN: We're going to do our own little spelling bee right here this morning. OK, so, I'd like you to spell this word. I'm going to give it to you... HEMMER: I'm not supposed to look at that prompter over there.

O'BRIEN: We took it out of prompter, don't worry.

HEMMER: OK.

O'BRIEN: I'm going to give you a sentence...

HEMMER: All right, did I ever tell you how great it is to have you back?

O'BRIEN: Blah, blah, blah. I'm going to give it to you in a sentence. You ready?

HEMMER: Yes.

O'BRIEN: Eisegesis. The report -- and here's the sentence. The report included his eisegesis of the forensic evidence.

HEMMER: I would say SOLEDAD.

O'BRIEN: I'm going to give you another chance to really try, Billy.

HEMMER: Eisegesis?

O'BRIEN: Eisegesis. It's usually, it's talked about, the interpretation of like a biblical text.

HEMMER: I've got no clue.

O'BRIEN: So what letter does it start with?

CAFFERTY: It's only a three hour show.

HEMMER: I.

O'BRIEN: I've got him -- wrong.

HEMMER: All right, E.

O'BRIEN: Anybody want to help him out?

CAFFERTY: I can do it.

HEMMER: Go ahead.

CAFFERTY: I-S-E-E-J-E-S-U-S-. I see Jesus.

HEMMER: Oh, yes!

O'BRIEN: No.

Let's watch the tape and see how the young man who was able to take -- tackle this word.

(BEGIN VIDEO CLIP)

UNIDENTIFIED CHILD: May I please have the definition?

UNIDENTIFIED MALE: The interpretation of a text, as of the bible, by reading into it one's own ideas.

UNIDENTIFIED CHILD: May I please have the language of origin?

UNIDENTIFIED MALE: Greek.

UNIDENTIFIED CHILD: Eisegesis -- E-I-S-E-G-E-S-I-S, Eisegesis.

(END VIDEO CLIP)

HEMMER: Oh, no. He's missing a vowel there, too. There should be something between the S and the G.

O'BRIEN: E-I...

HEMMER: Eisegesis, right? Is that what you said?

O'BRIEN: S-E-G-E-S-I-S.

(CROSSTALK)

O'BRIEN: So he got it right.

CAFFERTY: Well, that's it. We misspelled it on the thing.

HEMMER: We spelled it wrong. Dorks.

O'BRIEN: Oh, the people...

CAFFERTY: That's good.

O'BRIEN: I have it right on my paper here.

HEMMER: That's good.

O'BRIEN: And that young man, what is he, 12, got it right.

HEMMER: I saw Jesus.

O'BRIEN: I think your problem (UNINTELLIGIBLE) ask (UNINTELLIGIBLE).

CAFFERTY: That's amazing. That's one to go -- if I ever write the book, that'll be in it. And one day we did a thing on the National Spelling Bee and misspelled the winning word on our bottom graphic.

O'BRIEN: Well, the other day -- I think you were off, but we put, what was it, Atlanta? We put in...

HEMMER: Could we play again, please?

O'BRIEN: We put it in in the wrong state.

You want to do another one?

HEMMER: No.

O'BRIEN: Sure. Can we do another one?

Oh, we're going to do another one later on in the show.

HEMMER: Later? Do one later.

O'BRIEN: And what you want to do is ask...

HEMMER: Stay tuned, folks, really.

O'BRIEN: ... the country of origin.

HEMMER: You're not going to want to miss this.

O'BRIEN: I thought that kid was cute.

HEMMER: Greece.

O'BRIEN: All right, moving on.

HEMMER: Yes.

O'BRIEN: The final round of the National Spelling Bee concludes today. The winner is going to get 17 grand.

HEMMER: Yup.

O'BRIEN: Cashola. We're going to speak with the winner tomorrow morning.

HEMMER: In a moment here...

O'BRIEN: And it's not you.

HEMMER: That's right.

The warning signs for heart disease and diabetes. An alarming number of kids already have them. Sanjay stops back in a moment to look at what you need to know in a moment here.

O'BRIEN: Also, some stunning statements by Scott Peterson's lawyer, Mark Geragos. Why he says the condition of the Peterson pregnancy proves his client's innocence.

HEMMER: Also, it's a Thursday. Political Pop comes your way. Republicans say John Kerry is not your average Joe. So why are they playing games that prove it online? Kerryopoly in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK) O'BRIEN: More testimony is scheduled today in the Scott Peterson trial. In his opening statement yesterday, defense lawyer Mark Geragos contended that Scott Peterson is "stone cold innocent" in the death of his wife Laci and their unborn child. And he claimed the tape found around the neck of the child will help prove his case.

Ted Rowlands is live for us this morning in Redwood City, California -- Ted, good morning to you.

And let's start with that claim, and others made by Geragos.

TED ROWLANDS, CNN CORRESPONDENT: Well, it has to do with a photograph -- two photographs of the remains of the child. And it depicts a piece of what appears to be clear tape wrapped around the child's neck and then underneath around the child and around the arm. And then it is tied in what appears to be a bow. It's going to be a very central part of this case.

The prosecution says that that tape was simply debris in the San Francisco Bay, that was wrapped around the child as the child was in the Bay and was eventually pushed off onto the shore during a storm.

The defense, however, says that it is clear evidence that the child was handled outside of its mother's womb, Laci Peterson, and if that fact is true, you have to say that Scott Peterson is not guilty because he is not being charged with mutilating his wife by any means.

It's going to be a very central part of this case.

There is also a rectangular piece of debris or of something on the baby's ear, which is also in that photograph. The prosecution says it is kelp. The defense says it is electrical tape. It is symmetrical in that it is perfectly rectangular. The jury is going to have to decide which way to go. Both sides will have experts talking about these two photographs.

O'BRIEN: Right out of the box, Ted, you definitely get the sense that Geragos is really going to toe the line in his defense for his client.

What do you expect today? What do you expect to happen today?

ROWLANDS: Today it's expected that the prosecution will continue to build the scene around the time that Laci was first reported missing. Yesterday we heard from the maid who cleaned the house the day before and it really was just a set up to where the mop was and other items about the blinds in the house.

But today we should probably learn more about what happened after Scott Peterson reported that his wife was missing. There is a neighbor that said that he told her he was golf and not fishing, one of a couple of people that he said that to. That's most likely where this is going to go.

The prosecution, this is their style, is to be very methodical. And that is why this is going to take up to five months. They're going to go piecemeal through this and probably in chronological order and it's going to start in earnest today. They only heard -- they only had about an hour yesterday of testimony.

O'BRIEN: Ted Rowlands for us this morning.

Ted, thanks.

We'll look forward to seeing what happens tomorrow -- Bill.

HEMMER: In a moment here, feeling the pinch at the pump? If you are, relief may be on the way. Critical news in a moment. We'll mind your business on that.

Also, the makers of this popular anti-depressant facing a lawsuit. We'll tell you what when we continue, after this.

(COMMERCIAL BREAK)

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