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CNN Live At Daybreak

President Bush's Trip to Rome, Controversy Surrounding It; CIA Director George Tenet's Resigns

Aired June 04, 2004 - 05:00   ET

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

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


CAROL COSTELLO, CNN ANCHOR: President Bush on a trip to Europe that begins in Rome and will end at the beach in Normandy.
It is Friday, June 4.

This is DAYBREAK.

And good morning to you.

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

Let me bring you up to date now.

President Bush and the first lady in Rome this morning. Later this hour, they will meet with the pope. The president is hoping his European visit will lead to more support for the rehabilitation of Iraq.

Pakistan test fired another missile today. It's the second test this week. Pakistani officials say the test is not meant to alarm India, its nuclear rival.

In money news, OPEC agrees to increase its oil output by two million barrels a day, beginning July 1. A Saudi official says that should bring global oil prices down.

In sports, the Calgary Flames can clinch their second Stanley Cup with a win tomorrow. The Flames beat the Tampa Bay Lightning 3-2 last night in overtime. That gives them a 3-2 game lead.

In culture, Harry Potter and his magic wand return to theaters. The latest from author J.K. Rowling, "Harry Potter and the Prisoner of Azkaban" opens today. But you'll have to leave your potions at the door -- Rob.

(WEATHER REPORT)

COSTELLO: Now on to Rome, where President Bush will be meeting with several leaders, some of them sharply critical of the United States campaign in Iraq, including Pope John Paul.

Our White House correspondent Dana Bash traveling with the president.

She joins us now life from Rome.

Dana, the official reason for going there is to commemorate a milestone.

Tell us about that.

DANA BASH, CNN CORRESPONDENT: Hi, Carol.

Well, today is the 60th anniversary of the Allied liberation of Rome during World War 2. That is the official reason why President Bush is here in Italy visiting, to commemorate that. But just as he will be over the next three days in Europe, he will be talking about World War 2, important milestones, as you put it, against the backdrop of some major cracks in the alliance over the past year over the war in Iraq. And a major part of the president's theme will be to try to mend fences on the war in Iraq.

Now, Italy's prime minister, Berlusconi, is somebody whom the president has had as a staunch ally in the war, before the war and still at this time there are about 3,000 Italian troops in Iraq. And he remains a staunch ally.

However, later this ally, Mr. Bush -- later this hour, Mr. Bush is going to meet with somebody who was not supportive of the war, and that is the pope. Now, the pope is -- and the Vatican -- was openly opposed the war and a senior official said when the president meets with the pontiff later this hour he is going to say that he understands that he does not support any kind of war, particularly this one, but that sometimes force is necessary in order to get the kind of human rights that the pope does support around the world.

Now, the other issue that the White House is bracing for the pope to bring up with Mr. Bush are the abuses at Abu Ghraib. Senior officials say that the president will make clear to the pope that he understands that this is something that is not acceptable, that he will promise this won't happen again and that those who are responsible will be brought to justice -- Carol.

COSTELLO: Dana, before you go, I want to talk about the protesters, because there is some sentiment that some of them may become quite, well, a little radical.

BASH: Well, that was a warning that we heard from the prime minister of Italy, Berlusconi, yesterday. He said that he was concerned that they could get dangerous. Certainly the security here is incredibly tight. There are police officers at every corner. They're expecting perhaps upwards of about 10,000 protesters, but they're not expected to get near the president. They were concerned that they would disrupt things like morning rush hour traffic. We understand that hasn't happened yet, but certainly the Italian, police and the Italian government are trying to take precautions and try to shut things down in order to avoid any kind of serious danger here -- Carol.

COSTELLO: Dana Bash, we'll get back to you.

Dana Bash live from Rome this morning.

The president is scheduled to meet with the pope, by the way, in just about 40 minutes. Of course, we will bring that to you live when it happens.

And while the president is in Europe, Washington is buzzing with the announcement by CIA Director George Tenet that he's resigning. He says it's for personal reasons.

Our national security correspondent David Ensor has more for you.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): George Tenet says it was he who told the president that he wants to leave office in mid- July, after seven years as director of Central Intelligence.

GEORGE TENET, CIA DIRECTOR: While Washington and the media will put many different fasces on the decision, it was a personal decision and had only one basis in fact -- the well being of my wonderful family. Nothing more and nothing less.

ENSOR: Tenet is well liked on both sides of the political aisle, but the 9/11 attacks by al Qaeda came on his watch. By definition, an intelligence failure. So was the case at the U.N. for going to war to stop Iraq's weapons of mass destruction, weapons that have yet to be found. It was, after all, Tenet quoted in Bob Woodward's book saying it was a slam dunk case.

SEN. RICHARD SHELBY (R-AL), VICE CHAIRMAN, SENATE INTELLIGENCE COMMITTEE: The record is there that there have been more failures on his watch as director of CIA, massive failures of intelligence, than anybody I know.

BOB KERREY, 9/11 COMMISSION MEMBER: I think he did a terrific job as DCI and I'm sad to see that there's so many people sort of gunning for him, trying to run him out of the position.

TENET: We're not perfect, but one of our best kept secrets is that we are very, very, very good.

ENSOR: There will be other departures. James Pavitt, the man in charge of spies at the CIA, who made a rare public appearance before the 9/11 Commission in April, is about to announce that he, too, will resign this summer. Officials insist it has nothing to do with Tenet's departure.

Some are calling for the intelligence director's job to be redefined, with more powers, before a new director is selected.

REP. JANE HARMAN (D-CF), VICE CHAIRWOMAN, INTELLIGENCE COMMITTEE: I think before we replace him, we should replace his job.

ENSOR: Tenet says despite some disappointments, he's proud of his record. A senior intelligence official points to the quick war in Afghanistan, to Libya giving up weapons of mass destruction, to rolling up the nuclear black market of Pakistan's A.Q. Khan and to two thirds of al Qaeda's leaders having been killed or captured, though Osama bin Laden is still out there. Some are suggesting that Tenet may want to go before the 9/11 Commission report comes out this summer and reports from Hill committees on Iraq WMD that sources say are highly critical of the intelligence community and of Tenet.

(on camera): But stressing the personal nature of his decision to go, a senior intelligence official says in August, Tenet hopes to be looking at colleges with his high school senior son.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: A little background for you now. George Tenet became director of the CIA during the Clinton administration, in the summer of 1997. In announcing his resignation, Tenet told CIA employees that the agency has done magnificent work, but he admits the CIA's record is not without flaws. Tenet will leave on July 11, the seventh anniversary of his swearing in ceremony. He's the first CIA director in 28 years to serve under two different presidents. He joined the Clinton administration in 1993 as a member of Clinton's national security team.

Relatives of the September 11 victims will hear graphic details today on what happened inside of those four hijacked planes just before they crashed. Relatives of the 256 people killed on those planes will attend a confidential Justice Department briefing in Princeton, New Jersey. Among other things, taped phone calls from two flight attendants to airline officials will be played. But personal messages, such as personal goodbyes, won't.

In other stories across America this Friday, a climber has died after a 200 foot fall on Washington's Mount Rainier. His climbing partner was rescued by a National Guard helicopter and is in satisfactory condition this morning with a wrist injury.

There's a scramble to safeguard drinking water in California. A levy broke near Stockton and it sucked salt water into a fresh water river delta. The latest word from officials is that the break will not affect water supplies for southern California.

The Missouri Supreme Court says a state constitutional ban on gay marriage should be on the ballot in August, not November. It's a victory of sorts for Democrats, who said the amendment might draw conservatives to the polls, conservatives who would then vote for the Republicans on the November ballot.

The Scott Peterson murder trial resumes on Monday with defense attorney Mark Geragos cross-examining prosecution witnesses.

CNN correspondent David Mattingly is covering the trial in Redwood City, California and he brings you up to date.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): On the evening before Laci Peterson was reported missing, she visited her sister, Amy Rocha, as Amy gave Scott Peterson a haircut. Amy did not know it was the last time she would see her big sister alive. And now testifying against her former brother-in-law, Amy Rocha provided details of Laci's last day.

She guided the jury around a diagram of the Peterson home, as the prosecution displayed a picture of the smiling pregnant Laci. Rocha claims her sister complained of being tired and once becoming sick. It is testimony supported by two women from a Modesto day spa who saw Laci Peterson earlier that day. They also told the court Laci said she was tired and uncomfortable from her pregnancy, information that could be used to challenge Scott Peterson's claim that his eight month pregnant wife walked the family dog on Christmas Eve.

But most questions focused on Laci Peterson's clothing and the neutral, khaki colored pants she wore when both she and Scott came to Amy Rocha at this Modesto salon. Prosecutors will likely show they are similar to the pants found when Laci's body was recovered last spring, again challenging Scott Peterson's story that he last saw his wife wearing black pants.

(on camera): Defense attorney Mark Geragos will continue with his cross-examination on Monday. At that time, he is expected to continue his pursuit of the Modesto Police Department, challenging their handling of every aspect of this investigation.

David Mattingly, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: A 15-year-old story that just won't go away -- Tiananmen Square in Beijing. CNN's Mike Chinoy was there covering the massacre back in 1989. He'll give us a personal perspective this morning.

And 60 years later, personal memories of D-Day, some of them not so pleasant to recall.

And does Smarty Jones have the legs to do it again. We'll be watching to see if history is made at tomorrow's Belmont stakes. This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:14 Eastern.

Here's what's all new this morning.

President Bush and the first lady in Rome right now. Later this hour, they'll meet with the pope. The president is hoping his European visit will lead to more support for the rehabilitation of Iraq.

There is another resignation expected today at the CIA. Spy master James Pavitt -- he's the guy in charge of covert operations -- is expected to resign. As you know, CIA Director George Tenet announced his resignation on Thursday.

In money news, mortgage rates dipped slightly last week. The 30 year fixed rate went down to 6.28 percent. But that's still higher than it was at this time a year ago, when the rate was 5.26.

In sports, the French Open over for Jennifer Capriati. She was the last American left in singles play, but she lost her semifinal match to Anastasia Mysinka of Russia 6-2, 6-2.

In culture, the Census Bureau says men generally are paid more than women, but in a few male dominated occupations like hazardous waste removal, women actually earn more. And I don't know if that makes me feel better or worse -- Rob.

ROB MARCIANO, CNN CORRESPONDENT: No comment.

COSTELLO: OK.

MARCIANO: Nice weather.

COSTELLO: Good for you.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

U.S. investors are keeping a careful eye on the markets this morning. Crude oil prices have taken a welcome slide, but there are fears payroll data out later today might signal an increase in interest rates.

For the look at the markets overseas, let's head live to London and Tony Campion -- good morning, Tony.

TONY CAMPION, CNN CORRESPONDENT: Hello, Carol.

Yes, that's a great summary you gave there. The non-farm payrolls regular jobs report, you know, set to increase something like 216,000 jobs. That's the consensus figure. But, you know, it's funny, what they do is they say this is the consensus increase that we're looking for and then they say well, you know, the number could even be higher than that because, I mean, think about the ISM numbers that we had earlier. Both the manufacturing and non-manufacturing surveys had jobs components, employment components, that were really positive. And, also, the new jobless claims numbers have been, you know, really quite subdued. That's the way to put it.

And so it's positive for jobs. That means it's positive for the U.S. economy and, you know, even if the Fed does, as people now expect, put rates up by a quarter point at the end of this month, then, you know, probably the U.S. economy can stand it. So it's not necessarily negative for stocks.

Actually, here's an interesting story that's been positive or will be positive for stocks in all likelihood. Nestle, the Swiss manufacturer, food manufacturing, is reportedly putting in a bid for General Mills; of course, based in Minneapolis. And people are talking about as much as $22 billion. Now, this report coming out of Switzerland by sources quoted by Bloomberg. They're saying that General Mills hasn't been approached yet, so the market may be looking to get ahead of, you know, the actual deal coming through.

And, of course, you talked about oil. Just very briefly, NYMEX, as you say, trading now down below $39 a barrel. It's lower than it was, but it's not exactly cheap, is it?

COSTELLO: No.

CAMPION: So we have to watch where that goes.

Carol -- that's quickly how it looks.

COSTELLO: All right, Tony Campion live in London.

Thank you.

Fifteen years ago today, the Chinese Army stormed Tiananmen Square in Beijing, killed hundreds and hundreds of student demonstrators. There's no public mention of Tiananmen in today's China, but everybody remembers.

And so does our Mike Chinoy, who was there 15 years ago.

(BEGIN VIDEOTAPE)

MIKE CHINOY, CNN CORRESPONDENT (voice-over): What is it about Tiananmen Square? Why do the images and the story retain such enduring power, enough power that the subject remains taboo in China and that even on this fifteenth anniversary, the event is still remembered?

It was partly the times. The hopeful students who occupied the heart of Beijing in the spring of 1989 represented the first stirrings of the wind of change that was to sweep through the communist world later that year. It was probably the shattering of so many stereotypes about China, a nation so regimented by Mao Tse-Tung's communist revolution that, to many, it was a revelation that the desire for freedom had not only not been extinguished, but burned as fiercely as anywhere else.

In many ways, Tiananmen represented a revolutionary challenge to China's communist hard-liners. And the way it was witnessed around the world represented a revolution, too.

UNIDENTIFIED MALE: I'm being told that the government officials are coming into the CNN control room now.

CHINOY: When the Chinese authorities pulled CNN off the air, as martial law was declared, it underscored the arrival of a new phenomenon.

UNIDENTIFIED FEMALE: We'll have to shut it down.

CHINOY: The first time an epic event in what had been for many a distant, impenetrable nation, was beamed live. Twenty-four hour a day global TV news had arrived. And, of course, it was the bloody, horrifying end -- the People's Liberation Army occupying Tiananmen Square.

UNIDENTIFIED MALE: Oh my god.

CHINOY: Gunning down unarmed protesters, toppling the Goddess of Democracy. Against the awesome apparatus of state repression, the demonstrators never had a chance.

UNIDENTIFIED MALE: Oh, there's a guy. You see that guy?

UNIDENTIFIED MALE: No.

UNIDENTIFIED MALE: Well, there's a guy standing in front of a tank.

CHINOY: And yet one man gamely stood his ground, the man in front of the tank. His identity and fate still unknown. But that gesture will go down as one of the great images of the 20th century, an enduring tribute to the power of the human spirit to confront the power of the state. And even though his cause failed, that autumn the Berlin Wall fell. The communist regimes of Eastern Europe collapsed. The State of the Union would soon follow. There was a sense that the Beijing movement helped to light a fuse that would one day come back to explode in China.

(on camera): But in that, those of us who covered Tiananmen were wrong. The Chinese Communist Party didn't collapse and ironically, in the early 1990s, the man blamed for the crackdown, senior leader Deng Xiaoping, orchestrated a revival of market reforms.

(voice-over): Since then, China has experienced one of the greatest economic booms of modern history. Political repression continued, but for most ordinary people, there was greater personal liberty than at almost any other time in Chinese history.

Yet Tiananmen remains so sensitive that even today all public discussion is banned. Mothers who lost their sons, like Ding Zu-Lin (ph), can't mourn in public. Their demands the tragedy be reexamined rebuffed.

For the Communist Party, reversing the verdict on Tiananmen would be like pulling a bandage off a still unhealed wound, because in the end, what Tiananmen showed was that the party still rules by repression and by fear. And that's why while for ordinary Chinese, Tiananmen, 15 years on, is largely forgotten, for those in the ruling elite and for many of those who were there, the ghosts have not gone away.

Mike Chinoy, CNN, Hong Kong.

(END VIDEOTAPE) (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM NATIONAL SPELLING BEE, COURTESY ESPN)

UNIDENTIFIED CHILD: T-H-O-M...

(END VIDEO CLIP)

COSTELLO: It sounds like he's the one that's going to faint, right?

MARCIANO: Or give birth to a child.

COSTELLO: Oh, Rob Marciano! This is the winner of the spelling bee, the National Spelling Bee. He's 14-year-old David Tidmarsh and he spelled autochthonous, autochthonous. And I hope I'm pronouncing that right. It means indigenous.

MARCIANO: I couldn't confirm whether or not you're pronouncing that right or not. Indigenous, which you should probably give another...

COSTELLO: There's the word he spelled. That's amazing. But you could see how nervous he was and how wracked with stress his body was. The second place finisher, I don't know if you've seen this, but let us show you what happened before he was to spell a word.

(VIDEO CLIP FROM NATIONAL SPELLING BEE, COURTESY ESPN)

COSTELLO: See, that's just frightening. This is 13-year-old Akshay Buddiga. He was the second place finisher. What's amazing about this is the poor kid fainted. He gets up, walks back to the podium and then spells alopecoid.

MARCIANO: Correctly?

COSTELLO: Correctly.

MARCIANO: Well, that should be a scene in like "Rocky." Get up, Rock.

COSTELLO: Well, did you ever see the movie "Spellbound?"

MARCIANO: No.

COSTELLO: It's about the National Spelling Bee and how stressful it is and how much these kids practice and how much it means to them.

MARCIANO: Yes, yes.

COSTELLO: And it's just like in the movie.

MARCIANO: They study the dictionary?

COSTELLO: But that just stress overwhelms them and they just can't take it sometimes. MARCIANO: So much so, I think it's like, kind of like ESPN or ESPN 2, it's become like a sporting event of sorts.

COSTELLO: The National -- Sanjay Gupta, yesterday I was talking to him, he was going to go home and watch it, the National Spelling Bee, on TV.

MARCIANO: (UNINTELLIGIBLE).

COSTELLO: I said you are not.

MARCIANO: Well, he's that smart. He probably was in a spelling bee.

COSTELLO: He says he really enjoys it. But congratulations to the winner.

MARCIANO: Yes.

COSTELLO: That was just amazing.

MARCIANO: Yes, good stuff.

COSTELLO: And by the way, Ashkay is going to be OK. His family said he was just a little nervous. He can't talk about it right now, but he's going to go home and recover. And he did come in second place.

MARCIANO: And he has a little story to tell his kids, you know? Always pick yourself up and get back in the game.

COSTELLO: And go back -- right. It's like getting back in the saddle.

MARCIANO: It's nice to be back here, Carol.

COSTELLO: Yes.

MARCIANO: We'll see you in a little bit.

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

Some Iraqis are finding a new voice in talk radio. But will free speech translate into true democracy?

A decorated veteran shares D-Day memories. It's a poignant story you'll want to hear more about.

This is DAYBREAK for Friday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: The real estate market has been red hot. But housing starts, a key measure of the market's health, slipped in April. Should consumers be worried? Experts say no. While construction of new homes was slightly lower last month, activity levels for April still ranked as one of the strongest of the last 20 years. And, according to the experts, improving economic conditions should keep the market hot.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired June 4, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: President Bush on a trip to Europe that begins in Rome and will end at the beach in Normandy.
It is Friday, June 4.

This is DAYBREAK.

And good morning to you.

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

Let me bring you up to date now.

President Bush and the first lady in Rome this morning. Later this hour, they will meet with the pope. The president is hoping his European visit will lead to more support for the rehabilitation of Iraq.

Pakistan test fired another missile today. It's the second test this week. Pakistani officials say the test is not meant to alarm India, its nuclear rival.

In money news, OPEC agrees to increase its oil output by two million barrels a day, beginning July 1. A Saudi official says that should bring global oil prices down.

In sports, the Calgary Flames can clinch their second Stanley Cup with a win tomorrow. The Flames beat the Tampa Bay Lightning 3-2 last night in overtime. That gives them a 3-2 game lead.

In culture, Harry Potter and his magic wand return to theaters. The latest from author J.K. Rowling, "Harry Potter and the Prisoner of Azkaban" opens today. But you'll have to leave your potions at the door -- Rob.

(WEATHER REPORT)

COSTELLO: Now on to Rome, where President Bush will be meeting with several leaders, some of them sharply critical of the United States campaign in Iraq, including Pope John Paul.

Our White House correspondent Dana Bash traveling with the president.

She joins us now life from Rome.

Dana, the official reason for going there is to commemorate a milestone.

Tell us about that.

DANA BASH, CNN CORRESPONDENT: Hi, Carol.

Well, today is the 60th anniversary of the Allied liberation of Rome during World War 2. That is the official reason why President Bush is here in Italy visiting, to commemorate that. But just as he will be over the next three days in Europe, he will be talking about World War 2, important milestones, as you put it, against the backdrop of some major cracks in the alliance over the past year over the war in Iraq. And a major part of the president's theme will be to try to mend fences on the war in Iraq.

Now, Italy's prime minister, Berlusconi, is somebody whom the president has had as a staunch ally in the war, before the war and still at this time there are about 3,000 Italian troops in Iraq. And he remains a staunch ally.

However, later this ally, Mr. Bush -- later this hour, Mr. Bush is going to meet with somebody who was not supportive of the war, and that is the pope. Now, the pope is -- and the Vatican -- was openly opposed the war and a senior official said when the president meets with the pontiff later this hour he is going to say that he understands that he does not support any kind of war, particularly this one, but that sometimes force is necessary in order to get the kind of human rights that the pope does support around the world.

Now, the other issue that the White House is bracing for the pope to bring up with Mr. Bush are the abuses at Abu Ghraib. Senior officials say that the president will make clear to the pope that he understands that this is something that is not acceptable, that he will promise this won't happen again and that those who are responsible will be brought to justice -- Carol.

COSTELLO: Dana, before you go, I want to talk about the protesters, because there is some sentiment that some of them may become quite, well, a little radical.

BASH: Well, that was a warning that we heard from the prime minister of Italy, Berlusconi, yesterday. He said that he was concerned that they could get dangerous. Certainly the security here is incredibly tight. There are police officers at every corner. They're expecting perhaps upwards of about 10,000 protesters, but they're not expected to get near the president. They were concerned that they would disrupt things like morning rush hour traffic. We understand that hasn't happened yet, but certainly the Italian, police and the Italian government are trying to take precautions and try to shut things down in order to avoid any kind of serious danger here -- Carol.

COSTELLO: Dana Bash, we'll get back to you.

Dana Bash live from Rome this morning.

The president is scheduled to meet with the pope, by the way, in just about 40 minutes. Of course, we will bring that to you live when it happens.

And while the president is in Europe, Washington is buzzing with the announcement by CIA Director George Tenet that he's resigning. He says it's for personal reasons.

Our national security correspondent David Ensor has more for you.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): George Tenet says it was he who told the president that he wants to leave office in mid- July, after seven years as director of Central Intelligence.

GEORGE TENET, CIA DIRECTOR: While Washington and the media will put many different fasces on the decision, it was a personal decision and had only one basis in fact -- the well being of my wonderful family. Nothing more and nothing less.

ENSOR: Tenet is well liked on both sides of the political aisle, but the 9/11 attacks by al Qaeda came on his watch. By definition, an intelligence failure. So was the case at the U.N. for going to war to stop Iraq's weapons of mass destruction, weapons that have yet to be found. It was, after all, Tenet quoted in Bob Woodward's book saying it was a slam dunk case.

SEN. RICHARD SHELBY (R-AL), VICE CHAIRMAN, SENATE INTELLIGENCE COMMITTEE: The record is there that there have been more failures on his watch as director of CIA, massive failures of intelligence, than anybody I know.

BOB KERREY, 9/11 COMMISSION MEMBER: I think he did a terrific job as DCI and I'm sad to see that there's so many people sort of gunning for him, trying to run him out of the position.

TENET: We're not perfect, but one of our best kept secrets is that we are very, very, very good.

ENSOR: There will be other departures. James Pavitt, the man in charge of spies at the CIA, who made a rare public appearance before the 9/11 Commission in April, is about to announce that he, too, will resign this summer. Officials insist it has nothing to do with Tenet's departure.

Some are calling for the intelligence director's job to be redefined, with more powers, before a new director is selected.

REP. JANE HARMAN (D-CF), VICE CHAIRWOMAN, INTELLIGENCE COMMITTEE: I think before we replace him, we should replace his job.

ENSOR: Tenet says despite some disappointments, he's proud of his record. A senior intelligence official points to the quick war in Afghanistan, to Libya giving up weapons of mass destruction, to rolling up the nuclear black market of Pakistan's A.Q. Khan and to two thirds of al Qaeda's leaders having been killed or captured, though Osama bin Laden is still out there. Some are suggesting that Tenet may want to go before the 9/11 Commission report comes out this summer and reports from Hill committees on Iraq WMD that sources say are highly critical of the intelligence community and of Tenet.

(on camera): But stressing the personal nature of his decision to go, a senior intelligence official says in August, Tenet hopes to be looking at colleges with his high school senior son.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: A little background for you now. George Tenet became director of the CIA during the Clinton administration, in the summer of 1997. In announcing his resignation, Tenet told CIA employees that the agency has done magnificent work, but he admits the CIA's record is not without flaws. Tenet will leave on July 11, the seventh anniversary of his swearing in ceremony. He's the first CIA director in 28 years to serve under two different presidents. He joined the Clinton administration in 1993 as a member of Clinton's national security team.

Relatives of the September 11 victims will hear graphic details today on what happened inside of those four hijacked planes just before they crashed. Relatives of the 256 people killed on those planes will attend a confidential Justice Department briefing in Princeton, New Jersey. Among other things, taped phone calls from two flight attendants to airline officials will be played. But personal messages, such as personal goodbyes, won't.

In other stories across America this Friday, a climber has died after a 200 foot fall on Washington's Mount Rainier. His climbing partner was rescued by a National Guard helicopter and is in satisfactory condition this morning with a wrist injury.

There's a scramble to safeguard drinking water in California. A levy broke near Stockton and it sucked salt water into a fresh water river delta. The latest word from officials is that the break will not affect water supplies for southern California.

The Missouri Supreme Court says a state constitutional ban on gay marriage should be on the ballot in August, not November. It's a victory of sorts for Democrats, who said the amendment might draw conservatives to the polls, conservatives who would then vote for the Republicans on the November ballot.

The Scott Peterson murder trial resumes on Monday with defense attorney Mark Geragos cross-examining prosecution witnesses.

CNN correspondent David Mattingly is covering the trial in Redwood City, California and he brings you up to date.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): On the evening before Laci Peterson was reported missing, she visited her sister, Amy Rocha, as Amy gave Scott Peterson a haircut. Amy did not know it was the last time she would see her big sister alive. And now testifying against her former brother-in-law, Amy Rocha provided details of Laci's last day.

She guided the jury around a diagram of the Peterson home, as the prosecution displayed a picture of the smiling pregnant Laci. Rocha claims her sister complained of being tired and once becoming sick. It is testimony supported by two women from a Modesto day spa who saw Laci Peterson earlier that day. They also told the court Laci said she was tired and uncomfortable from her pregnancy, information that could be used to challenge Scott Peterson's claim that his eight month pregnant wife walked the family dog on Christmas Eve.

But most questions focused on Laci Peterson's clothing and the neutral, khaki colored pants she wore when both she and Scott came to Amy Rocha at this Modesto salon. Prosecutors will likely show they are similar to the pants found when Laci's body was recovered last spring, again challenging Scott Peterson's story that he last saw his wife wearing black pants.

(on camera): Defense attorney Mark Geragos will continue with his cross-examination on Monday. At that time, he is expected to continue his pursuit of the Modesto Police Department, challenging their handling of every aspect of this investigation.

David Mattingly, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: A 15-year-old story that just won't go away -- Tiananmen Square in Beijing. CNN's Mike Chinoy was there covering the massacre back in 1989. He'll give us a personal perspective this morning.

And 60 years later, personal memories of D-Day, some of them not so pleasant to recall.

And does Smarty Jones have the legs to do it again. We'll be watching to see if history is made at tomorrow's Belmont stakes. This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:14 Eastern.

Here's what's all new this morning.

President Bush and the first lady in Rome right now. Later this hour, they'll meet with the pope. The president is hoping his European visit will lead to more support for the rehabilitation of Iraq.

There is another resignation expected today at the CIA. Spy master James Pavitt -- he's the guy in charge of covert operations -- is expected to resign. As you know, CIA Director George Tenet announced his resignation on Thursday.

In money news, mortgage rates dipped slightly last week. The 30 year fixed rate went down to 6.28 percent. But that's still higher than it was at this time a year ago, when the rate was 5.26.

In sports, the French Open over for Jennifer Capriati. She was the last American left in singles play, but she lost her semifinal match to Anastasia Mysinka of Russia 6-2, 6-2.

In culture, the Census Bureau says men generally are paid more than women, but in a few male dominated occupations like hazardous waste removal, women actually earn more. And I don't know if that makes me feel better or worse -- Rob.

ROB MARCIANO, CNN CORRESPONDENT: No comment.

COSTELLO: OK.

MARCIANO: Nice weather.

COSTELLO: Good for you.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

U.S. investors are keeping a careful eye on the markets this morning. Crude oil prices have taken a welcome slide, but there are fears payroll data out later today might signal an increase in interest rates.

For the look at the markets overseas, let's head live to London and Tony Campion -- good morning, Tony.

TONY CAMPION, CNN CORRESPONDENT: Hello, Carol.

Yes, that's a great summary you gave there. The non-farm payrolls regular jobs report, you know, set to increase something like 216,000 jobs. That's the consensus figure. But, you know, it's funny, what they do is they say this is the consensus increase that we're looking for and then they say well, you know, the number could even be higher than that because, I mean, think about the ISM numbers that we had earlier. Both the manufacturing and non-manufacturing surveys had jobs components, employment components, that were really positive. And, also, the new jobless claims numbers have been, you know, really quite subdued. That's the way to put it.

And so it's positive for jobs. That means it's positive for the U.S. economy and, you know, even if the Fed does, as people now expect, put rates up by a quarter point at the end of this month, then, you know, probably the U.S. economy can stand it. So it's not necessarily negative for stocks.

Actually, here's an interesting story that's been positive or will be positive for stocks in all likelihood. Nestle, the Swiss manufacturer, food manufacturing, is reportedly putting in a bid for General Mills; of course, based in Minneapolis. And people are talking about as much as $22 billion. Now, this report coming out of Switzerland by sources quoted by Bloomberg. They're saying that General Mills hasn't been approached yet, so the market may be looking to get ahead of, you know, the actual deal coming through.

And, of course, you talked about oil. Just very briefly, NYMEX, as you say, trading now down below $39 a barrel. It's lower than it was, but it's not exactly cheap, is it?

COSTELLO: No.

CAMPION: So we have to watch where that goes.

Carol -- that's quickly how it looks.

COSTELLO: All right, Tony Campion live in London.

Thank you.

Fifteen years ago today, the Chinese Army stormed Tiananmen Square in Beijing, killed hundreds and hundreds of student demonstrators. There's no public mention of Tiananmen in today's China, but everybody remembers.

And so does our Mike Chinoy, who was there 15 years ago.

(BEGIN VIDEOTAPE)

MIKE CHINOY, CNN CORRESPONDENT (voice-over): What is it about Tiananmen Square? Why do the images and the story retain such enduring power, enough power that the subject remains taboo in China and that even on this fifteenth anniversary, the event is still remembered?

It was partly the times. The hopeful students who occupied the heart of Beijing in the spring of 1989 represented the first stirrings of the wind of change that was to sweep through the communist world later that year. It was probably the shattering of so many stereotypes about China, a nation so regimented by Mao Tse-Tung's communist revolution that, to many, it was a revelation that the desire for freedom had not only not been extinguished, but burned as fiercely as anywhere else.

In many ways, Tiananmen represented a revolutionary challenge to China's communist hard-liners. And the way it was witnessed around the world represented a revolution, too.

UNIDENTIFIED MALE: I'm being told that the government officials are coming into the CNN control room now.

CHINOY: When the Chinese authorities pulled CNN off the air, as martial law was declared, it underscored the arrival of a new phenomenon.

UNIDENTIFIED FEMALE: We'll have to shut it down.

CHINOY: The first time an epic event in what had been for many a distant, impenetrable nation, was beamed live. Twenty-four hour a day global TV news had arrived. And, of course, it was the bloody, horrifying end -- the People's Liberation Army occupying Tiananmen Square.

UNIDENTIFIED MALE: Oh my god.

CHINOY: Gunning down unarmed protesters, toppling the Goddess of Democracy. Against the awesome apparatus of state repression, the demonstrators never had a chance.

UNIDENTIFIED MALE: Oh, there's a guy. You see that guy?

UNIDENTIFIED MALE: No.

UNIDENTIFIED MALE: Well, there's a guy standing in front of a tank.

CHINOY: And yet one man gamely stood his ground, the man in front of the tank. His identity and fate still unknown. But that gesture will go down as one of the great images of the 20th century, an enduring tribute to the power of the human spirit to confront the power of the state. And even though his cause failed, that autumn the Berlin Wall fell. The communist regimes of Eastern Europe collapsed. The State of the Union would soon follow. There was a sense that the Beijing movement helped to light a fuse that would one day come back to explode in China.

(on camera): But in that, those of us who covered Tiananmen were wrong. The Chinese Communist Party didn't collapse and ironically, in the early 1990s, the man blamed for the crackdown, senior leader Deng Xiaoping, orchestrated a revival of market reforms.

(voice-over): Since then, China has experienced one of the greatest economic booms of modern history. Political repression continued, but for most ordinary people, there was greater personal liberty than at almost any other time in Chinese history.

Yet Tiananmen remains so sensitive that even today all public discussion is banned. Mothers who lost their sons, like Ding Zu-Lin (ph), can't mourn in public. Their demands the tragedy be reexamined rebuffed.

For the Communist Party, reversing the verdict on Tiananmen would be like pulling a bandage off a still unhealed wound, because in the end, what Tiananmen showed was that the party still rules by repression and by fear. And that's why while for ordinary Chinese, Tiananmen, 15 years on, is largely forgotten, for those in the ruling elite and for many of those who were there, the ghosts have not gone away.

Mike Chinoy, CNN, Hong Kong.

(END VIDEOTAPE) (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM NATIONAL SPELLING BEE, COURTESY ESPN)

UNIDENTIFIED CHILD: T-H-O-M...

(END VIDEO CLIP)

COSTELLO: It sounds like he's the one that's going to faint, right?

MARCIANO: Or give birth to a child.

COSTELLO: Oh, Rob Marciano! This is the winner of the spelling bee, the National Spelling Bee. He's 14-year-old David Tidmarsh and he spelled autochthonous, autochthonous. And I hope I'm pronouncing that right. It means indigenous.

MARCIANO: I couldn't confirm whether or not you're pronouncing that right or not. Indigenous, which you should probably give another...

COSTELLO: There's the word he spelled. That's amazing. But you could see how nervous he was and how wracked with stress his body was. The second place finisher, I don't know if you've seen this, but let us show you what happened before he was to spell a word.

(VIDEO CLIP FROM NATIONAL SPELLING BEE, COURTESY ESPN)

COSTELLO: See, that's just frightening. This is 13-year-old Akshay Buddiga. He was the second place finisher. What's amazing about this is the poor kid fainted. He gets up, walks back to the podium and then spells alopecoid.

MARCIANO: Correctly?

COSTELLO: Correctly.

MARCIANO: Well, that should be a scene in like "Rocky." Get up, Rock.

COSTELLO: Well, did you ever see the movie "Spellbound?"

MARCIANO: No.

COSTELLO: It's about the National Spelling Bee and how stressful it is and how much these kids practice and how much it means to them.

MARCIANO: Yes, yes.

COSTELLO: And it's just like in the movie.

MARCIANO: They study the dictionary?

COSTELLO: But that just stress overwhelms them and they just can't take it sometimes. MARCIANO: So much so, I think it's like, kind of like ESPN or ESPN 2, it's become like a sporting event of sorts.

COSTELLO: The National -- Sanjay Gupta, yesterday I was talking to him, he was going to go home and watch it, the National Spelling Bee, on TV.

MARCIANO: (UNINTELLIGIBLE).

COSTELLO: I said you are not.

MARCIANO: Well, he's that smart. He probably was in a spelling bee.

COSTELLO: He says he really enjoys it. But congratulations to the winner.

MARCIANO: Yes.

COSTELLO: That was just amazing.

MARCIANO: Yes, good stuff.

COSTELLO: And by the way, Ashkay is going to be OK. His family said he was just a little nervous. He can't talk about it right now, but he's going to go home and recover. And he did come in second place.

MARCIANO: And he has a little story to tell his kids, you know? Always pick yourself up and get back in the game.

COSTELLO: And go back -- right. It's like getting back in the saddle.

MARCIANO: It's nice to be back here, Carol.

COSTELLO: Yes.

MARCIANO: We'll see you in a little bit.

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

Some Iraqis are finding a new voice in talk radio. But will free speech translate into true democracy?

A decorated veteran shares D-Day memories. It's a poignant story you'll want to hear more about.

This is DAYBREAK for Friday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: The real estate market has been red hot. But housing starts, a key measure of the market's health, slipped in April. Should consumers be worried? Experts say no. While construction of new homes was slightly lower last month, activity levels for April still ranked as one of the strongest of the last 20 years. And, according to the experts, improving economic conditions should keep the market hot.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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