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American Morning

Al Qaeda Plot; Interview With Mayor Michael Coleman; Handing Over Saddam

Aired June 15, 2004 - 9:00   ET

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


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


BILL HEMMER, CNN ANCHOR: Good morning. Soft target? The government says it's broken up al Qaeda's plan to blow up a shopping mall. A suspect now facing federal charges in that case.
Anger in the courts. Scott Peterson's lawyer getting mad enough to call for a mistrial. Then he gets laughed at in court.

And seeing fruit in a whole new light. What's the connection to better eyesight?

All ahead this hour on 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, everybody. Some of the news making headlines this morning.

The Justice Department saying that al Qaeda was plotting to bomb a shopping mall somewhere around Columbus, Ohio. The mayor of Columbus is our guest in just a few moments. We're going to find out just how much he knows about this threat.

HEMMER: Also, Iraq's interim prime minister telling us earlier today that his government is now negotiating with the U.S. and the coalition to take charge of Saddam Hussein. The military have been saying they did not know anything about that. We'll find out what they're saying this morning. A live report from the Pentagon has to his fate and the fate of thousands of other detainees in Iraq.

O'BRIEN: Also this morning, identity theft has become such a huge problem, costing millions of -- millions of Americans billions of dollars. This morning, we're going to teach you how you can unwittingly allow thieves to access your bank account and how not to do that.

HEMMER: Information you need to know, too.

Jack Cafferty, good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

What do you have in common with your United States' senator? The financial disclosure forms are out for all the members of the U.S. Senate from last year. Some of them are very, very wealthy, some of them not so wealthy. All kinds of interesting little tidbits in there, and it prompted us to ask, what do you feel like you might have in common with your senator?

HEMMER: Do they have to look long and far, or not?

CAFFERTY: Well, you know, it's funny. I mean, Indiana, we got a letter saying, you know, "I feel like I have a lot in common." And whatever they identify with -- "My senator's a farmer, I'm a farmer. We live a simpler life."

Other people -- I mean, in New Jersey, Jon Corzine is an investment banker from Goldman Sachs, probably worth over $100 million. A little tough to relate if you're, you know, a schoolteacher trying to buy the groceries.

HEMMER: Quick quiz. Who are the senators in Indiana?

CAFFERTY: Lugar and...

HEMMER: Evan Bayh.

O'BRIEN: Evan Bayh.

CAFFERTY: Evan Bayh. It used to be Birch Bayh.

HEMMER: Correct.

CAFFERTY: Yes. That's -- Birch Bayh was my generation senator in Indiana. Evan Bayh is yours.

HEMMER: We'll go with Evan Bayh today.

CAFFERTY: Yes.

HEMMER: Thanks, Jack.

CAFFERTY: All right.

O'BRIEN: Thanks, Jack. Good question today.

Federal officials say a Somali man plotted to blow up a shopping mall in the Columbus, Ohio, area. The man, Nuradin Abdi, has been indicted for providing material support to al Qaeda. Here's Justice correspondent Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE DEPT. CORRESPONDENT (voice-over): U.S. officials say they may have thwarted a devastating attack on an Ohio shopping mall.

JOHN ASHCROFT, ATTORNEY GENERAL: The American heartland was targeted for death and destruction by an al Qaeda cell which allegedly included a Somali immigrant who will now face justice.

ARENA: Nuradin Abdi, a 32-year-old Somali, is charged with providing material support to al Qaeda for allegedly conspiring to set off bomb at an unidentified mall. KEVIN BROCK, FBI: There could be a presumption perhaps that because the conspirators were in our area that they were looking at malls in our area. But we don't have that specificity.

ARENA: As the charges were read in court, Abdi did not enter a plea. His brothers insist he is innocent.

UNIDENTIFIED MALE: The truth, I think of it as all lies and stuff, because it's not something that Nuradin would be capable of doing. Usually he would be the guy that would hate terrorism.

ARENA: One of Abdi's co-conspirators, according to government, was convicted al Qaeda operative Iyman Faris, who is already serving 20 years in prison. Law enforcement officials say Abdi was under surveillance before being taken into immigration custody in November. He's also charged with fraud and misuse of documents.

The FBI says the shopping mall plot was just one of the threats associated with Abdi. But it's the only one listed in the indictment. Terror experts say malls are wide open to attack.

UNIDENTIFIED MALE: The bomb, if it's a suicide bomb, can be constructed just about anyplace and then freely transported. We don't have internal security checkpoints to stop people, to look for the contents of their vehicles.

ARENA (on camera): The FBI and homeland security officials insist there was no imminent danger, and sources say the plot was in its early stages. Still, officials say the investigation into Abdi and anyone he associated with continues.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

O'BRIEN: Joining us from Columbus, Ohio, with his reaction to this alleged terror plot, is the city's mayor, Michael Coleman.

Nice to see you, Mr. Mayor. Thanks for being with us this morning.

MAYOR MICHAEL COLEMAN, COLUMBUS, OHIO: Good morning, Soledad.

O'BRIEN: We heard from the attorney general that the American heartland could be -- could have been facing death and destruction. Do you think that Columbus and the areas around there are becoming a center of terrorism?

COLEMAN: No, I don't think we're becoming a center of terrorism. But I have to say that every city in America, including the city of Columbus, are engaged in national defense for the first time in the history of our nation. As a result, this city, we will do whatever is necessary to keep our city safe from terrorism and crime.

O'BRIEN: Abdi has been charged with two counts of providing material support to al Qaeda. But it's unclear whether the charges specifically include the bomb plot. Do you know that?

COLEMAN: What's the question again?

O'BRIEN: He's charged with two counts of material support to al Qaeda. But it's unclear if those specifically include the bombing plot per se, or if it's those charges that they're holding them on today. Do you know that to be the case, that this includes -- these charges include the specific bombing plot?

COLEMAN: No, I don't know that one way or another. I must say, though, that the FBI and the federal authorities have been very communicative to the city of Columbus through a joint terrorism task force which involves the Columbus Division of Police. So they've been very helpful and I commend them for taking this action.

O'BRIEN: What exactly are they telling you? Because there are lots of unanswered questions. For example, what exactly was the evidence? We're told there was no imminent threat, that there was a plan in the making, but it hadn't gotten very far along. Where exactly was the plan?

COLEMAN: Well, you know, those are things that frankly we can't even talk about. And, frankly, some of those things we may not even know about. But certainly we are grateful to the FBI and the Columbus Police for working together to take this person off the streets of Columbus.

O'BRIEN: What do you blame this -- this and other terrorist activities that you were just referencing in your first answer a moment ago, what do you blame that on, the influx of foreigners into Columbus and areas around there?

COLEMAN: Well, I don't blame it on that at all. Columbus is a very welcoming city for diversity. We are not in a war against the Muslim religion. We are not in a war against the Somalian population.

We are in a war against terrorism. And any indication that this is about immigration is frankly -- those folks are wrong. And we do not want to divide this country, we want to unite this current.

O'BRIEN: Nuradin Abdi, a business owner in Columbus, his family has denied any links to any kind of terror organization. Do you think there's any chance whatsoever that officials have nabbed the wrong guy?

COLEMAN: Say that again?

O'BRIEN: Do you think there's any -- excuse me, we're obviously having some audio problems. So my apologies to you. Do you think there's any possibility that officials have nabbed the wrong guy? His family members have said he's the first person who would fight out against terror.

COLEMAN: Well, you know, we have to put faith and trust in the FBI that they have done the job necessary to identify this person as a threat to our community and that they have indicted him. There has been a federal indictment against this person. Obviously, in America, you're innocent until proven guilty. But certainly they have taken this person off the streets of Columbus, and we want to eliminate any threat.

O'BRIEN: Do you feel more comforted by that, that he is off the streets? Or do you feel more worried that it looks like there is some sort, potentially, of a terror cell in your neighborhood?

COLEMAN: I think, just generally speaking, that anytime we get potential terrorists off the street that's a good thing. But one thing we cannot do, Soledad, is blame any race, any religion in our country or in our city. That would be the wrong thing to do. And I'm not going to do that, and there should -- nobody in our city or in this nation should do that.

O'BRIEN: Mayor Michael Coleman is mayor of Columbus. Thanks for being with us this morning. We sure appreciate it.

COLEMAN: Thank you. Thank you very much.

O'BRIEN: Bill?

HEMMER: A bit earlier on our program here, Iraq's interim prime minister said his government is, "currently negotiating with coalition authorities regarding the handover of Saddam Hussein to Iraqi custody." This is some of what Iyad Allawi told me a short time ago.

(BEGIN VIDEO CLIP)

IYAD ALLAWI, INTERIM PRIME MINISTER, IRAQ: Well, definitely, we'll be trying our best to get custody of Saddam and the other criminals. We have so far some definite promises from the coalition that this would be the case. The negotiations are under way and are progressing well.

(END VIDEO CLIP)

HEMMER: That was the word from Baghdad. The Pentagon, however, says there are no immediate plans calling for the handover of Saddam. To the Pentagon now, and Barbara Starr, who is watching it there.

Good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Bill.

Well, plenty of confusion. And in a way, plenty of clarification, all at the same time. Now, here's what the current state of play is.

Pentagon officials say no immediate plans indeed. But they do confirm that they are in active discussions with the new Iraqi government about turning Saddam Hussein over. If they can get it done by June 30, they say that's all to the better. But they're not making a commitment to do it by June 30. What they say is they must discuss and get the conditions set with the new Iraqi government, particularly the conditions under which Saddam Hussein would be held and the security conditions if he is going to be held by the Iraqis -- Bill.

HEMMER: Through this, Barbara, there's this discussion about thousands of detainees throughout Iraq. What's the status regarding the Pentagon's position as to when they would be handed over to Iraqis?

STARR: It's really the same issue on the table, but it gets quite interesting, of course. There are thousands of additional people the U.S. expects it will continue to hold. But also, many will be turned over to the Iraqis.

Now, the ones that were going to be turned over to the Iraqis, some of the most interesting questions, what about the top 55, that deck of cards, the top officials of the former regime that may still have information about the insurgency but also may have information about weapons of mass destruction programs? All of this is under discussion, what people will be turned over, how the Iraqis will hold them, and the conditions, when the U.S. would be allowed to continue to interrogate these people that may be turned over to the Iraqi government -- Bill.

HEMMER: Barbara, thanks for that. Barbara Starr at the Pentagon.

Eleven minutes now past the hour. An intriguing legal story yesterday. Prosecutors in the Scott Peterson case presenting police testimony to cast suspicion on his behavior the night his wife, Laci, disappeared. In court yesterday, that testimony led defense attorney Mark Geragos to angrily ask for a mistrial. That was denied, but today, Gloria Gomez covering that case for KOVR in Sacramento, live with us outside the courthouse in Redwood City, California.

Good morning, Gloria.

GLORIA GOMEZ, KOVR CORRESPONDENT: Good morning, Bill.

HEMMER: I know you were in the courtroom yesterday. What set Mark Geragos off?

GOMEZ: Well, the fact that he was hearing for the first time this X-rated language by Scott Peterson soon after the investigation, he had no idea this even existed. He obviously erupted in anger after the jury was excused and told the judge that this was the first time he was hearing this, this wasn't in any police reports, and that he demanded a mistrial. Of course, the judge denied that, but did admonish the prosecution, telling them that every piece of information, every statement must be turned over to the defense immediately.

HEMMER: What was the prosecution implicating with that evidence in court? GOMEZ: Well, it sounded to me like they were trying to insinuate that after some questioning, one of the responding officers who first showed up at the scene began questioning Scott Peterson about his phishing story, what was he going phishing for? Scott couldn't answer it. He was -- he said that he had a blank look on his face and couldn't answer the question. Soon after that, Scott walked out of the house, threw down a flashlight, and said a four-letter word, almost insinuating that he was upset because he wasn't able to answer these alibi questions.

HEMMER: Did the prosecution definitively show in court yesterday why he cursed and why he threw this flashlight?

GOMEZ: No. I mean, the judge says, well, you could cut this both ways. It could be that maybe Scott Peterson was upset over his missing wife, and why are police asking him these silly questions. Or, obviously, that he was frustrated because he couldn't answer these simple alibi questions.

HEMMER: Back to the issue of Mark Geragos, what was the gallery reaction? I understand a few snickers went through the audience there.

GOMEZ: Absolutely. And that engaged Mark Geragos. As a matter of fact, when he said he demanded a mistrial, there was chuckling in the courtroom. He quickly turned around and said, "Judge, tell these people to be quiet. If not, throw them out." The judge responded, "Mr. Geregos, this isn't a movie. I can't do that."

HEMMER: Given that response, what was your impression about how the judge responded?

GOMEZ: He was very, very sharp, he was right on top of it. He knew that the anger was quickly escalating. He quickly calmed both attorneys down, tried to referee them and say, listen, I understand what's going on, I know the issues are going to come up. But we need to get this done.

He calmed both lawyers down, told them that the request was denied and moved on. But he's very in charge of his courtroom -- Bill.

HEMMER: One more thing, Gloria, here. The response from the jurors was what that you could gauge?

GOMEZ: Well, actually, when that happened, when the -- you know, the four-letter word came out, obviously, they were taking notes during that time. And then as soon as Mark Geragos heard it, he asked if the jury could be excused. So they didn't get to hear, obviously, what happened inside the courtroom.

But they knew something was going on, because when they came in, (AUDIO GAP) question of, why wasn't this in your report? If it was so important, why wasn't it there? So the jury also taking note of that as well -- Bill.

HEMMER: We'll see what happens today. Gloria, thanks.

GOMEZ: You're welcome.

HEMMER: Gloria Gomez, KOVR reporter there out of Sacramento, working the story in Redwood, California. Nice to see you. Thanks.

GOMEZ: Nice to see you, too.

HEMMER: Almost 15 minutes past the hour. Back to Heidi Collins, check of the other news today.

Heidi, good morning.

HEIDI COLLINS, CNN ANCHOR: Good morning, Bill. Good morning to you, everybody, once again.

President Bush hosting Afghan leader Hamid Karzai at the White House today. The two leaders are expected to discuss security in Afghanistan and plans for long-awaited elections. Karzai will address a joint meeting of Congress before holding talks with President Bush. The two will hold a news conference in the Rose Garden at 11:25 a.m. Eastern, and CNN will have live coverage.

There's word this morning original plans for the September 11 terrorist attacks were put on hold. According to sources cited in The Washington Post, al Qaeda leaders postponed the attacks because a lead hijacker was not ready. The delay is reportedly part of evidence found by the commission investigating the 9/11 attacks. The panel is expected to discuss its findings during a final public hearing tomorrow.

Pop star Michael Jackson won't get a break on his bail. The California judge decided the bail will remain as set at $3 million. Jackson's attorney had argued the amount was unreasonably high.

And tennis star Andre Agassi is pulling out of Wimbledon. The 34-year-old former Wimbledon winner saying he won't take part in next week's tournament because of a hip injury. He notified tournament officials in a written statement. Agassi said he feels the grass courts will aggravate his condition but expects to play in the prestigious event next year. Hope he can do that.

HEMMER: They're going to miss him, too.

COLLINS: Yes.

HEMMER: Very competitive there.

COLLINS: Always a big draw.

HEMMER: That's right. Thank you, Heidi.

COLLINS: Yes.

O'BRIEN: Jack's got the "Question of the Day."

CAFFERTY: He's been whooped (ph) up on...

O'BRIEN: Yes.

CAFFERTY: ... the last couple of tournaments. He's been knocked out in the first round.

HEMMER: A little bit. But so many times, though, you see him come back with such speed.

CAFFERTY: With such what?

HEMMER: With such speed. I mean, this guy can cover a court when he's...

CAFFERTY: Oh, yes. No, he's a great player. I just wonder if he's maybe past his prime, like some of us are.

That thing about the plural of the word mongoose, before we get to the real stuff, Doug in Connecticut says, "I once asked my father the correct plural of mongoose. He said, 'You say, look, a mongoose. Look another one.'"

(LAUGHTER)

HEMMER: Noted.

CAFFERTY: What do you have in common with your U.S. senator? Financial disclosure forms out. Some of them very wealthy, some of them not so wealthy. So we thought we'd sample a little opinion on what people feel they might have in common with these folks.

Keith in Shorewood, Wisconsin, "Our senator, Russ Feingold, not only takes less than his full salary, he also carries a second mortgage on his house. And though Russ does better than most with his Senate salary, it would be great if other states would elect politicians like him."

Anthony in Washington, D.C., "Oh, to whine about my senator or congressmen. However, I live in the nation's capital. We have no representation in Congress, yet we continue to pay our taxes without representation. Something sound wrong with that?"

Mary in Laurel, New York, "How many of us would choose to work at all if we were as wealthy as some in Congress? And would we work at a job where we were so highly scrutinized by the public? Perhaps all I have in common with those who serve our country in Congress is an intense interest in making things better."

And John in Oxford, Connecticut, "I was discussing this very question sitting on my senator's yacht the other day. We were having a good laugh listening to the Enron tapes as we watched some old veteran sitting in his little dinghy phishing. I said, 'He's phishing for better prescription rates.' The senator laughed and said, 'Ha, we'll see that never happens. Let him eat cake.'"

O'BRIEN: Excellent responses. CAFFERTY: All kinds of opinions about those elected folks.

O'BRIEN: Yes.

HEMMER: (UNINTELLIGIBLE) response from Doug, too.

CAFFERTY: Look, there's a mongoose.

O'BRIEN: There's another one.

CAFFERTY: There's another one.

O'BRIEN: That's the best line of the day, for sure.

HEMMER: Thank you, Jack.

CAFFERTY: Yes.

(WEATHER REPORT)

O'BRIEN: Let's take you down to Atlantic City in New Jersey. That is where presidential candidate John Kerry is talking to the New Jersey state AFL-CIO convention. The group has just given the senator its endorsement. You'll recall he canceled most of his events last week, the week of Ronald Reagan's death. So let's listen in to what he's telling them.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Raise the minimum wage, but have a labor secretary who represents the interests of labor in the United States of America.

(APPLAUSE)

KERRY: And not to bring politics into this...

(LAUGHTER)

KERRY: ... but thanks to your voice, scores of people, including me, have won an election or two across this country. I've got news for you. We're going to do it again this November. America will hear your voice loud and clear all the way to the White House.

(APPLAUSE)

O'BRIEN: An enthusiastic reception from the folks at the AFL-CIO convention. Apparently, the senator spent the night at the gaming resort in Atlantic City. He raised a million bucks at Jon Bon Jovi's mansion, where they had a fund raiser last night. Doing all right in the fund raising part of it.

Still to come this morning, criminals stole billions of dollars last year online. All they had to do was ask. We're going to tell you what you can do to protect yourself just ahead.

HEMMER: Also, Afghanistan's President Hamid Karzai coming to Washington, at the White House, in fact, today, looking for help. What kind of reception will he get? What's he looking for? A live report in a moment from the White House as we continue after this.

(COMMERCIAL BREAK)

O'BRIEN: There's a disturbing new trend in online identity theft. Nearly two million Americans were victims of it last year for a total of more than $2 billion. Lisa Sylvester takes a look.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Thieves have found a new way to tap into consumers' bank accounts. They don't even have to steal personal information. They just ask for it.

It's called phishing. Criminals send out phoney e-mails requesting bank information updates with a link to a fake Web site. It's almost impossible to tell the difference between this phoney fleet bank Web site and the real one.

UNIDENTIFIED FEMALE: Even though it may say in your e-mail a legitimate Web site, hidden behind that address is the crook's address.

SYLVESTER: For identity theft victims, clearing their names can take years. Sharon Jones has a pile of letters from creditors demanding payments for bills that are not hers.

SHARON JONES, IDENTITY THEFT VICTIM: It's been a total nightmare, because you never know when something else is going to pop up. So you have to constantly check your credit report.

SYLVESTER: Phishing e-mails have increased 4,000 percent in the past six months, according to the Anti-phishing Working Group, which includes Internet service providers, banks and law enforcement officials. Citibank, eBay and PayPal are the most common targets. But consumers can protect themselves by looking for tip-offs, such as misspelled words and by not clicking on links, even ones that appear legitimate.

UNIDENTIFIED MALE: The most effective thing is to really open up a Web browser window and go directly to the bank yourself. Type in the address into the Web browser rather than relying on the link.

SYLVESTER: The financial and computer industries are working on standards to authenticate e-mail. In the meantime, banks will reimburse victims of credit and checking account scams provided they're reported within two months.

(on camera): There's another growing trend in identity theft called Trojan Horse or Spyware. Consumers are sent a link, and when they've open it they have unknowingly downloaded Spyware software that records every keystroke, including personal financial information.

Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE) O'BRIEN: If you want to learn how to protect yourself from online identity theft, log on to the Web site for the Anti-Phishing -- that's p-h-i-s-h-i-n-g -- Working Group. That's Anti-Phishing, one word, with the "ph" again -- .org -- Bill.

HEMMER: In a moment here, Afghanistan's interim president says there's a growing threat in his country. A live report from the White House in a moment, what's happening there today.

Also, the shifting terror tactics in Saudi Arabia. Is the kingdom doing all it can to keep Americans safe? We'll talk to a security expert who's lived there and worked there ahead in a moment.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

HEMMER: Welcome back, everybody, 9:30 here in New York. Good morning again, and welcome back to AMERICAN MORNING.

The president of Afghanistan right now heading into a meeting in Congress there in Washington, looking for help to see him through the September elections. Hamid Karzai does not enjoy the same popularity he had about two years ago. He has important meeting, though, with the president today at the White House. We'll get you down there in a moment here and figure out the agenda today and what the request is. Stay tuned for more on that.

O'BRIEN: Also this morning, an American's been kidnapped in Saudi Arabia. Several others have been killed. But the State Department had told American companies that their people were not safe in Saudi Arabia. We're going to take a look at the new terrorist tactics there and what thousands of Americans who are there should do.

HEMMER: Also, remember when mom used to say eat your carrots, they're good for your eyes? Did your mom say that?

O'BRIEN: Yes.

HEMMER: Sometimes, sure. Whatever works. Mom was wrong.

You're better off with grapes and strawberries. So says Sanjay, anyway. We're going to talk to Sanjay in a moment here. We'll get to that about preventing vision loss.

O'BRIEN: Interesting. I knew (ph) that. All right, that's ahead.

Afghan President Hamid Karzai has predicted that security problems will increase with elections looming in September. President Karzai is due to address Congress in just a few minutes.

He's going to follow that with a meeting with President Bush in the Oval Office. As you can see, they're assembling there in Congress, still waiting for him. Our congressional correspondent, though, Ed Henry, is on Capitol Hill. He has much more with what to expect this morning.

Nice to see you, Ed. Good morning again.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Soledad.

This is a rare honor for a foreign leader to get, to be able to address a joint meeting of Congress. It shows, obviously, that Afghanistan is a key ally for the United States in the war on terror. It also shows that it is a critical ally in trying to find Osama bin Laden along the Afghan-Pakistan border.

Also, the backdrop here is that the Bush administration, as you mentioned, wants to make sure that Afghanistan pushes ahead with elections in September. That could also play a role in the U.S. elections here this fall. Obviously, if there is a stabilized Afghanistan, if the election moves forward, that could give President Bush a feather in his cap heading into the U.S. election, that there's a stabilized Afghanistan.

Also, while Iraq dominates the headlines these days, we still have 20,000 U.S. troops in Afghanistan. And if the election does not move forward, if the country does not get stabilized, you can bet that Democratic Senator John Kerry will be making that an issue in the presidential campaign here in the United States.

Mr. Karzai is launching an international tour here. He's trying to generate support for his government in advance of those elections, but also generate support for himself.

He's come under fire. There have been charges that he is corrupt. There's been charges he's not doing enough to crack down on the drug trade in Afghanistan. There's been charges that he's been dealing -- cutting too many backroom deals with warlords, and also that Mr. Karzai is not pushing ahead hard enough on democracy. But I can tell you that Republicans and Democrats, like Senate Democratic Leader Tom Daschle, he told CNN yesterday that, while Mr. Karzai has not been perfect, he thinks he's been a strong leader, and that he is the best hope for democracy in Afghanistan -- Soledad.

O'BRIEN: Ed, is the expectation that he's going to get -- Hamid Karzai's going to get a warm reception as he talks to Congress or the opposite?

HENRY: Absolutely. I think that you're going to see support from the Congress. That's why this invitation was extended to him. You're going to see warm support from this Congress, but there are going to be tough questions. Even people like Senator Daschle, who said he supports Karzai, said that nobody can underestimate the challenge ahead for Mr. Karzai and the United States as we move forward toward those elections in September and beyond -- Soledad.

O'BRIEN: Ed Henry is our congressional correspondent. Ed, thanks for that. We'll check in with you again as this gets under way. Appreciate it. CNN, of course, is going to have live coverage of President Bush's Rose Garden news conference with the Afghan president, Hamid Karzai. That happens this morning at 11:25 Eastern Time -- Bill.

HEMMER: Back to the story now in Saudi Arabia. The U.S. government has been urging Americans to leave that country for about two months. White House spokesperson Scott McClellan yesterday saying Americans should "take those advisories very seriously."

Alastair Morrison is chairman of Kroll Security International. He's advised oil companies in the kingdom on security for the past 30 years. He's now our guest live in London.

Thanks for your time, sir. And welcome here to AMERICAN MORNING. How do companies keep their employees safe in that country?

ALASTAIR MORRISON, KROLL SECURITY INTERNATIONAL: Well, up until now, there hasn't been too much of a threat. But over the last 12 months, the terrorists, or the fundamentalists, have obviously decided to go for some fairly soft targets. Hence, over the last particularly couple of months one has seen some pretty bad attacks on the expatriate population.

Every company has a responsibility to care for their employees. And when a situation like this occurs, the company will be taking all the actions they can to try and improve the security. In Saudi Arabia, the armed security is provided by government forces, the national guard, police, or so on. And there's no private security which is allowed to be armed. So the companies are facing quite a problem at the moment.

HEMMER: It is a fact, though, that it's a big country. Riyadh itself is a very big city.

MORRISON: Yes.

HEMMER: Is there a sense of danger today in that city?

MORRISON: I think the problem is that the attacks that have occurred recently have been so random that the feeling among the expatriates and, indeed, among the Saudi nationals themselves, is one of great uncertainty because the people don't really feel safe while they're in their own homes or in the place of work, or indeed the shopping malls or other places that people might go.

HEMMER: I asked you about the companies there working and employing people in Saudi Arabia. What about the country itself, the government of Saudi Arabia? As best you can tell, are they doing enough at this point?

MORRISON: As far as I can tell, yes. And I think the fact that the soft targets, the expatriate population are being attacked, probably illustrates that the terrorists or the fundamentalists appreciate that the other targets, the key infrastructure projects and the members of the government, royal family and so on, are adequately protected. So therefore, they're going for a much easier target. HEMMER: When you hear warnings come out of the White House, like we heard again yesterday, should Americans leave there? Or is that an overreaction?

MORRISON: No, I think that the American government is being very responsible. It's a very dangerous situation at the moment. I think that as the spokesman said yesterday, American citizens, indeed other expatriates, should listen to those advisories.

HEMMER: And the advisories may continue to come. And when they do, we'll listen as well. Alastair Morrison, thanks. Chairman of Kroll Security International, our guest there live in London. Thank you -- Soledad.

O'BRIEN: Well, still to come this morning, we are "Paging Dr. Gupta." He might tell you about something you can eat that might fight off your vision problems. That's just ahead.

HEMMER: I like this story, too. Also, clearing up the confusion over Saddam Hussein. Who exactly will be holding him on the 30th of June? We'll take a look at that.

Hamid Karzai now in Congress on Capitol Hill. Back in a moment as our coverage continues right after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody.

Eat more fruit, see more clearly. A new study says that could be the case. Dr. Sanjay Gupta has this in his focus this morning.

What gives? Good morning.

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

Well, there's a lot of good reasons to eat fruit. Certainly, people have known that for some time. Fiber, nutrients, antioxidants, fruit can also ward off cardiovascular disease or stroke, maybe even Alzheimer's. But now you be able to add another reason to eat fruits, specifically three fruits a day.

This is a new study, a very large study looking at over 70,000 women, nearly 50,000 men, following them over a period of time, trying to figure out how it affected vision, specifically something known as age-related maculopathy or macular degeneration. This is the most common cause of blindness in adults besides glaucoma, and a very, very important thing that people have been trying to focus on for some time.

What they've found in all sorts of different sort of myths about what might ward off this disease, eating three or more fruit servings a day gave you a 36 percent lower risk of age-related macular degeneration as compared to people who ate less, even if they ate up to one-and-a-half servings a day. So, really, it was three servings a day that was so important. Now, there's been a lot of other research as well, looking at other ways to ward off ARM, age-related maculopathy, such as carrots, such as vitamins, all that sort of stuff. They really found that fruits in this particular instance were going to be the best in terms of stacking the decks against vision loss later on in life.

HEMMER: What is it, Sanjay, about fruit that can help eyesight?

GUPTA: You know, it's interesting. There's lots of different proposed mechanisms on this.

One of the most common is that it probably has a lot of antioxidants, specifically. When you talk about age-related macular degeneration, you're talking about a cumulative disease, a disease that really takes place over someone's life, as opposed to something that you're suddenly struck with. So if you're getting the benefit of things like antioxidants, sort of sweeping up the bad cells that are attacking your eyes, that might be your best bet in trying -- in trying to fight it off -- Bill.

HEMMER: So is the focus strictly on fruits, or are there other things where people could help increase their vision?

GUPTA: Well, you know, I mean, a lot of people talk about carrots. And carrots and vision, something that have gone together since we were children, certainly. And that's sort of true and not true.

Carrots do increase your levels of vitamin A, which help preserve normal vision. But they're not so good at warding off this specific thing.

What this study showed, Bill, was that fruits, better than vitamins, better than supplements, and better than most vegetables in terms of warding it off. Macular degeneration, incidentally, again, age-related maculopathy, it's the leading cause of vision loss that's non-surgical besides glaucoma.

Part of the retina actually deteriorates. And every older person, if you live long enough, you're going to be at risk of this. And Bill, people are living longer, so this is becoming more of a concern.

HEMMER: So my banana and raisins every morning at 5:00 a.m., I'm on the right track, right?

GUPTA: That's right. You're not going to need those glasses after a while.

HEMMER: Yes, right. Lasic. Thanks, Sanjay.

GUPTA: Talk to you.

HEMMER: In a moment here, some U.S. border agents upset. They say it has everything to do with the uniforms. Andy's back in a moment, minding their business, and yours as well, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: It's 45 minutes past the hour now. Time to look at some of the other stories making headlines today with Heidi Collins.

Heidi, good morning.

COLLINS: Good morning, Soledad. And good morning once again, everybody.

At this hour, Afghan President Hamid Karzai addressing a joint meeting of Congress. Karzai in Washington today, discussing the security situation in Afghanistan.

(BEGIN VIDEO CLIP)

(APPLAUSE)

HAMID KARZAI, PRESIDENT OF AFGHANISTAN: We have secured an open and inclusive society, where minority languages are accorded official recognition and where the press enjoys unprecedented freedom. We have -- we, the Afghan people, have once again established ourselves as a proud and sovereign nation.

(END VIDEO CLIP)

COLLINS: He will be holding talks with President Bush shortly after his remarks to Congress. The two leaders expected to discuss security issues as well. They'll hold a news conference in the Rose Garden at 11:25 a.m. Eastern Time.

A top homeland security official says authorities have a terror threat -- or believe that a terror threat has been thwarted. Federal law enforcement officials have linked a Somali man, Nuradin Abdi, to a plot to blow up a shopping mall. A detention hearing on his behalf is expected tomorrow.

There appears to be some confusion over the custody of former Iraqi leader Saddam Hussein. Pentagon officials say the U.S. will continue to hold Saddam after the transfer of power on June 30. Earlier on AMERICAN MORNING, Iraq's interim prime minister said negotiations are under way for his handover to the Iraqis.

China says it will host another round of talks on North Korea's nuclear program. Representatives from six nations met last February. The new round of talks will be held in Beijing beginning on June 23. China, the two Koreas, the U.S., Japan, and Russia will be taking part in those discussions.

Campaign 2004, the candidates back on the road this week. President Bush was in Missouri yesterday defending his new Medicare prescription drug plan. Tomorrow, the president will visit troops in Florida.

Meanwhile, the Democratic candidate, John Kerry, speaking to union leaders right now in Atlantic City, New Jersey. A live picture for you there. He'll be holding a roundtable discussion tomorrow with families in Ohio.

Bill and Soledad, back over to you.

O'BRIEN: All right. Heidi, thanks.

Well, some angry border patrol agents don't like the label that they're being stuck with. With that, and a check of the markets this morning as well, Andy Serwer, "Minding Your Business."

Good morning to you.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE" MAGAZINE: Good morning.

Let's talk about the markets first. We'll get to that ironic border patrol story in a moment.

Stocks moving up as we speak, up 64 on the Big Board. What's happening? Lehman Brothers and Boeing reporting their businesses are going very well. Those two stocks are up.

Interesting one here for you. Vail -- yes, that's the ski mountain -- best quarter ever. Skiing season's way over, they're still reporting the numbers, 86 percent up, season pass is doing the trick there. Vail, Beaver Creek, Breckenridge, Keystone, they own those resorts. Best quarter ever for that company.

Delta Airlines reporting that Song, that's their discount carrier, is cutting back one-third of its flights. That's a big deal. Delta was really looking at this business to carry it forward.

Forty-one of its 140 flights being axed. They call it routine slowdown in the summer. Huh? That's what some Wall Street analysts are saying. Others are saying it's simply not working.

And now let's move on to this border patrol story. I love this. Border patrol in Mexico, guys got a bunch of new uniforms the other day. They looked at the label and guess what? The uniforms were made in Mexico.

You know, what can you say here? A lot of the guys were upset, saying, we want to buy American, we want American made, we want -- well, maybe you could get American made uniforms, but I bet you they'd cost a lot more. And then maybe some of the guys would have to get laid off.

You know, it's kind of like it's all about NAFTA. It's a global economy here. So, you know, that kind of thing is inevitable, I believe.

HEMMER: Would they be more upset if they were made in China?

SERWER: Yes, or India. I mean, you know, it's kind of hard to avoid that these days.

O'BRIEN: Right. Exactly. Interesting.

CAFFERTY: Make them in Beaver Creek.

SERWER: Yes.

(CROSSTALK)

CAFFERTY: I'm going to be in Beaver Creek next week.

HEMMER: Oh really? You're not staying in Bachelor Gulch by any chance, are you? No.

CAFFERTY: Say what?

HEMMER: I just had to know. There's a beautiful resort in Beaver Creek.

CAFFERTY: Yes?

SERWER: That's where he's going.

HEMMER: The Bachelor Gulch Ritz.

CAFFERTY: Do they have a golf course?

HEMMER: I think they do, yes.

CAFFERTY: My daughter -- I've got a daughter in Denver and she's made the arrangements. We're going to get together with the kids and...

HEMMER: Oh.

O'BRIEN: You're going on vacation again?

CAFFERTY: ... play a little.

HEMMER: Them is fighting words.

CAFFERTY: Yes. I'm going on maternity leave.

SERWER: No good deed goes...

CAFFERTY: That's correct. Alert those beavers in Beaver Creek, I'm coming.

HEMMER: All right.

CAFFERTY: The "Question of the Day" has to do with how much you think you have in common with your U.S. senator. Dale in Milwaukee writes this: "I don't feel connected to my senators. However, I also understand that it takes a great deal of wealth to run for elective office today. Until we pass meaningful campaign finance reform, we'll always be represented by those with the financial capacity to run and win." Jason in North Carolina writes: "What do I have in common with my state senators? Well, if there's any justice in the world, come November they'll be as unemployed as I am."

And Michelle in Lewistown, New York: "Hillary Clinton and I have the following things in common: we both live in New York, we're both women, we both have short hair, and we both have husbands who cheated on us."

SERWER: Wow. Coming clean on national television.

HEMMER: We're going to end on that note?

CAFFERTY: That would be -- that's all I have at this time. Unless you want to go back to the discussion of the plural for mongoose.

HEMMER: Eight minutes left.

CAFFERTY: Oh, my goodness. So much fun yet to be had here on AMERICAN MORNING.

HEMMER: Buckle up.

O'BRIEN: All right, Jack. Thanks.

Still to come this morning, one last check of the forecast is ahead on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

(WEATHER REPORT)

O'BRIEN: Still ahead this morning on CNN, Afghan interim President Hamid Karzai looking for help in Washington, D.C. We've got live coverage of his Rose Garden news conference with President Bush. That coming up with Daryn Kagan on "CNN LIVE TODAY."

AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

HEMMER: Before we get out of here, Aaron Brown and a preview of what's coming later tonight on "NEWSNIGHT." Here's Aaron.

(BEGIN VIDEO CLIP)

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on the program, remembering a moment in history long forgotten. A church outing, a ship on fire, a tragedy that played out before hundreds of thousands of people. It was New York City's worst disaster prior to 9/11, 100 years ago today. One hundred years ago today, 100 years later, the story is being told again, and our Nissen is telling it. We'll have that, plus all the day's top news stories, morning papers and everything else that makes "NEWSNIGHT" "NEWSNIGHT," CNN tonight, 10 p.m. Eastern -- Bill.

(END VIDEO CLIP)

HEMMER: We'll be there. Aaron, thanks much. See you later tonight on "NEWSNIGHT."

In the meantime we've got to run. Andy has five bucks on Cafferty for the Lakers to beat Detroit tonight, right?

SERWER: Put the (UNINTELLIGIBLE).

HEMMER: Send the series back to L.A.?

CAFFERTY: Mortgage the house and bet it all on Detroit.

HEMMER: Woo!

SERWER: My lunch is paid for. Free lunch.

CAFFERTY: Bet the children's college fund on the Pistons.

SERWER: Everyone else can e-mail in and join me win this bet, if you'd like.

HEMMER: We will see you tomorrow bright and early.

SERWER: He won't take it, but you can e-mail.

HEMMER: He might. We've got to run. Have a great day. Here's Daryn Kagan at the CNN Center.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired June 15, 2004 - 9:00   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. Soft target? The government says it's broken up al Qaeda's plan to blow up a shopping mall. A suspect now facing federal charges in that case.
Anger in the courts. Scott Peterson's lawyer getting mad enough to call for a mistrial. Then he gets laughed at in court.

And seeing fruit in a whole new light. What's the connection to better eyesight?

All ahead this hour on 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, everybody. Some of the news making headlines this morning.

The Justice Department saying that al Qaeda was plotting to bomb a shopping mall somewhere around Columbus, Ohio. The mayor of Columbus is our guest in just a few moments. We're going to find out just how much he knows about this threat.

HEMMER: Also, Iraq's interim prime minister telling us earlier today that his government is now negotiating with the U.S. and the coalition to take charge of Saddam Hussein. The military have been saying they did not know anything about that. We'll find out what they're saying this morning. A live report from the Pentagon has to his fate and the fate of thousands of other detainees in Iraq.

O'BRIEN: Also this morning, identity theft has become such a huge problem, costing millions of -- millions of Americans billions of dollars. This morning, we're going to teach you how you can unwittingly allow thieves to access your bank account and how not to do that.

HEMMER: Information you need to know, too.

Jack Cafferty, good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

What do you have in common with your United States' senator? The financial disclosure forms are out for all the members of the U.S. Senate from last year. Some of them are very, very wealthy, some of them not so wealthy. All kinds of interesting little tidbits in there, and it prompted us to ask, what do you feel like you might have in common with your senator?

HEMMER: Do they have to look long and far, or not?

CAFFERTY: Well, you know, it's funny. I mean, Indiana, we got a letter saying, you know, "I feel like I have a lot in common." And whatever they identify with -- "My senator's a farmer, I'm a farmer. We live a simpler life."

Other people -- I mean, in New Jersey, Jon Corzine is an investment banker from Goldman Sachs, probably worth over $100 million. A little tough to relate if you're, you know, a schoolteacher trying to buy the groceries.

HEMMER: Quick quiz. Who are the senators in Indiana?

CAFFERTY: Lugar and...

HEMMER: Evan Bayh.

O'BRIEN: Evan Bayh.

CAFFERTY: Evan Bayh. It used to be Birch Bayh.

HEMMER: Correct.

CAFFERTY: Yes. That's -- Birch Bayh was my generation senator in Indiana. Evan Bayh is yours.

HEMMER: We'll go with Evan Bayh today.

CAFFERTY: Yes.

HEMMER: Thanks, Jack.

CAFFERTY: All right.

O'BRIEN: Thanks, Jack. Good question today.

Federal officials say a Somali man plotted to blow up a shopping mall in the Columbus, Ohio, area. The man, Nuradin Abdi, has been indicted for providing material support to al Qaeda. Here's Justice correspondent Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE DEPT. CORRESPONDENT (voice-over): U.S. officials say they may have thwarted a devastating attack on an Ohio shopping mall.

JOHN ASHCROFT, ATTORNEY GENERAL: The American heartland was targeted for death and destruction by an al Qaeda cell which allegedly included a Somali immigrant who will now face justice.

ARENA: Nuradin Abdi, a 32-year-old Somali, is charged with providing material support to al Qaeda for allegedly conspiring to set off bomb at an unidentified mall. KEVIN BROCK, FBI: There could be a presumption perhaps that because the conspirators were in our area that they were looking at malls in our area. But we don't have that specificity.

ARENA: As the charges were read in court, Abdi did not enter a plea. His brothers insist he is innocent.

UNIDENTIFIED MALE: The truth, I think of it as all lies and stuff, because it's not something that Nuradin would be capable of doing. Usually he would be the guy that would hate terrorism.

ARENA: One of Abdi's co-conspirators, according to government, was convicted al Qaeda operative Iyman Faris, who is already serving 20 years in prison. Law enforcement officials say Abdi was under surveillance before being taken into immigration custody in November. He's also charged with fraud and misuse of documents.

The FBI says the shopping mall plot was just one of the threats associated with Abdi. But it's the only one listed in the indictment. Terror experts say malls are wide open to attack.

UNIDENTIFIED MALE: The bomb, if it's a suicide bomb, can be constructed just about anyplace and then freely transported. We don't have internal security checkpoints to stop people, to look for the contents of their vehicles.

ARENA (on camera): The FBI and homeland security officials insist there was no imminent danger, and sources say the plot was in its early stages. Still, officials say the investigation into Abdi and anyone he associated with continues.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

O'BRIEN: Joining us from Columbus, Ohio, with his reaction to this alleged terror plot, is the city's mayor, Michael Coleman.

Nice to see you, Mr. Mayor. Thanks for being with us this morning.

MAYOR MICHAEL COLEMAN, COLUMBUS, OHIO: Good morning, Soledad.

O'BRIEN: We heard from the attorney general that the American heartland could be -- could have been facing death and destruction. Do you think that Columbus and the areas around there are becoming a center of terrorism?

COLEMAN: No, I don't think we're becoming a center of terrorism. But I have to say that every city in America, including the city of Columbus, are engaged in national defense for the first time in the history of our nation. As a result, this city, we will do whatever is necessary to keep our city safe from terrorism and crime.

O'BRIEN: Abdi has been charged with two counts of providing material support to al Qaeda. But it's unclear whether the charges specifically include the bomb plot. Do you know that?

COLEMAN: What's the question again?

O'BRIEN: He's charged with two counts of material support to al Qaeda. But it's unclear if those specifically include the bombing plot per se, or if it's those charges that they're holding them on today. Do you know that to be the case, that this includes -- these charges include the specific bombing plot?

COLEMAN: No, I don't know that one way or another. I must say, though, that the FBI and the federal authorities have been very communicative to the city of Columbus through a joint terrorism task force which involves the Columbus Division of Police. So they've been very helpful and I commend them for taking this action.

O'BRIEN: What exactly are they telling you? Because there are lots of unanswered questions. For example, what exactly was the evidence? We're told there was no imminent threat, that there was a plan in the making, but it hadn't gotten very far along. Where exactly was the plan?

COLEMAN: Well, you know, those are things that frankly we can't even talk about. And, frankly, some of those things we may not even know about. But certainly we are grateful to the FBI and the Columbus Police for working together to take this person off the streets of Columbus.

O'BRIEN: What do you blame this -- this and other terrorist activities that you were just referencing in your first answer a moment ago, what do you blame that on, the influx of foreigners into Columbus and areas around there?

COLEMAN: Well, I don't blame it on that at all. Columbus is a very welcoming city for diversity. We are not in a war against the Muslim religion. We are not in a war against the Somalian population.

We are in a war against terrorism. And any indication that this is about immigration is frankly -- those folks are wrong. And we do not want to divide this country, we want to unite this current.

O'BRIEN: Nuradin Abdi, a business owner in Columbus, his family has denied any links to any kind of terror organization. Do you think there's any chance whatsoever that officials have nabbed the wrong guy?

COLEMAN: Say that again?

O'BRIEN: Do you think there's any -- excuse me, we're obviously having some audio problems. So my apologies to you. Do you think there's any possibility that officials have nabbed the wrong guy? His family members have said he's the first person who would fight out against terror.

COLEMAN: Well, you know, we have to put faith and trust in the FBI that they have done the job necessary to identify this person as a threat to our community and that they have indicted him. There has been a federal indictment against this person. Obviously, in America, you're innocent until proven guilty. But certainly they have taken this person off the streets of Columbus, and we want to eliminate any threat.

O'BRIEN: Do you feel more comforted by that, that he is off the streets? Or do you feel more worried that it looks like there is some sort, potentially, of a terror cell in your neighborhood?

COLEMAN: I think, just generally speaking, that anytime we get potential terrorists off the street that's a good thing. But one thing we cannot do, Soledad, is blame any race, any religion in our country or in our city. That would be the wrong thing to do. And I'm not going to do that, and there should -- nobody in our city or in this nation should do that.

O'BRIEN: Mayor Michael Coleman is mayor of Columbus. Thanks for being with us this morning. We sure appreciate it.

COLEMAN: Thank you. Thank you very much.

O'BRIEN: Bill?

HEMMER: A bit earlier on our program here, Iraq's interim prime minister said his government is, "currently negotiating with coalition authorities regarding the handover of Saddam Hussein to Iraqi custody." This is some of what Iyad Allawi told me a short time ago.

(BEGIN VIDEO CLIP)

IYAD ALLAWI, INTERIM PRIME MINISTER, IRAQ: Well, definitely, we'll be trying our best to get custody of Saddam and the other criminals. We have so far some definite promises from the coalition that this would be the case. The negotiations are under way and are progressing well.

(END VIDEO CLIP)

HEMMER: That was the word from Baghdad. The Pentagon, however, says there are no immediate plans calling for the handover of Saddam. To the Pentagon now, and Barbara Starr, who is watching it there.

Good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Bill.

Well, plenty of confusion. And in a way, plenty of clarification, all at the same time. Now, here's what the current state of play is.

Pentagon officials say no immediate plans indeed. But they do confirm that they are in active discussions with the new Iraqi government about turning Saddam Hussein over. If they can get it done by June 30, they say that's all to the better. But they're not making a commitment to do it by June 30. What they say is they must discuss and get the conditions set with the new Iraqi government, particularly the conditions under which Saddam Hussein would be held and the security conditions if he is going to be held by the Iraqis -- Bill.

HEMMER: Through this, Barbara, there's this discussion about thousands of detainees throughout Iraq. What's the status regarding the Pentagon's position as to when they would be handed over to Iraqis?

STARR: It's really the same issue on the table, but it gets quite interesting, of course. There are thousands of additional people the U.S. expects it will continue to hold. But also, many will be turned over to the Iraqis.

Now, the ones that were going to be turned over to the Iraqis, some of the most interesting questions, what about the top 55, that deck of cards, the top officials of the former regime that may still have information about the insurgency but also may have information about weapons of mass destruction programs? All of this is under discussion, what people will be turned over, how the Iraqis will hold them, and the conditions, when the U.S. would be allowed to continue to interrogate these people that may be turned over to the Iraqi government -- Bill.

HEMMER: Barbara, thanks for that. Barbara Starr at the Pentagon.

Eleven minutes now past the hour. An intriguing legal story yesterday. Prosecutors in the Scott Peterson case presenting police testimony to cast suspicion on his behavior the night his wife, Laci, disappeared. In court yesterday, that testimony led defense attorney Mark Geragos to angrily ask for a mistrial. That was denied, but today, Gloria Gomez covering that case for KOVR in Sacramento, live with us outside the courthouse in Redwood City, California.

Good morning, Gloria.

GLORIA GOMEZ, KOVR CORRESPONDENT: Good morning, Bill.

HEMMER: I know you were in the courtroom yesterday. What set Mark Geragos off?

GOMEZ: Well, the fact that he was hearing for the first time this X-rated language by Scott Peterson soon after the investigation, he had no idea this even existed. He obviously erupted in anger after the jury was excused and told the judge that this was the first time he was hearing this, this wasn't in any police reports, and that he demanded a mistrial. Of course, the judge denied that, but did admonish the prosecution, telling them that every piece of information, every statement must be turned over to the defense immediately.

HEMMER: What was the prosecution implicating with that evidence in court? GOMEZ: Well, it sounded to me like they were trying to insinuate that after some questioning, one of the responding officers who first showed up at the scene began questioning Scott Peterson about his phishing story, what was he going phishing for? Scott couldn't answer it. He was -- he said that he had a blank look on his face and couldn't answer the question. Soon after that, Scott walked out of the house, threw down a flashlight, and said a four-letter word, almost insinuating that he was upset because he wasn't able to answer these alibi questions.

HEMMER: Did the prosecution definitively show in court yesterday why he cursed and why he threw this flashlight?

GOMEZ: No. I mean, the judge says, well, you could cut this both ways. It could be that maybe Scott Peterson was upset over his missing wife, and why are police asking him these silly questions. Or, obviously, that he was frustrated because he couldn't answer these simple alibi questions.

HEMMER: Back to the issue of Mark Geragos, what was the gallery reaction? I understand a few snickers went through the audience there.

GOMEZ: Absolutely. And that engaged Mark Geragos. As a matter of fact, when he said he demanded a mistrial, there was chuckling in the courtroom. He quickly turned around and said, "Judge, tell these people to be quiet. If not, throw them out." The judge responded, "Mr. Geregos, this isn't a movie. I can't do that."

HEMMER: Given that response, what was your impression about how the judge responded?

GOMEZ: He was very, very sharp, he was right on top of it. He knew that the anger was quickly escalating. He quickly calmed both attorneys down, tried to referee them and say, listen, I understand what's going on, I know the issues are going to come up. But we need to get this done.

He calmed both lawyers down, told them that the request was denied and moved on. But he's very in charge of his courtroom -- Bill.

HEMMER: One more thing, Gloria, here. The response from the jurors was what that you could gauge?

GOMEZ: Well, actually, when that happened, when the -- you know, the four-letter word came out, obviously, they were taking notes during that time. And then as soon as Mark Geragos heard it, he asked if the jury could be excused. So they didn't get to hear, obviously, what happened inside the courtroom.

But they knew something was going on, because when they came in, (AUDIO GAP) question of, why wasn't this in your report? If it was so important, why wasn't it there? So the jury also taking note of that as well -- Bill.

HEMMER: We'll see what happens today. Gloria, thanks.

GOMEZ: You're welcome.

HEMMER: Gloria Gomez, KOVR reporter there out of Sacramento, working the story in Redwood, California. Nice to see you. Thanks.

GOMEZ: Nice to see you, too.

HEMMER: Almost 15 minutes past the hour. Back to Heidi Collins, check of the other news today.

Heidi, good morning.

HEIDI COLLINS, CNN ANCHOR: Good morning, Bill. Good morning to you, everybody, once again.

President Bush hosting Afghan leader Hamid Karzai at the White House today. The two leaders are expected to discuss security in Afghanistan and plans for long-awaited elections. Karzai will address a joint meeting of Congress before holding talks with President Bush. The two will hold a news conference in the Rose Garden at 11:25 a.m. Eastern, and CNN will have live coverage.

There's word this morning original plans for the September 11 terrorist attacks were put on hold. According to sources cited in The Washington Post, al Qaeda leaders postponed the attacks because a lead hijacker was not ready. The delay is reportedly part of evidence found by the commission investigating the 9/11 attacks. The panel is expected to discuss its findings during a final public hearing tomorrow.

Pop star Michael Jackson won't get a break on his bail. The California judge decided the bail will remain as set at $3 million. Jackson's attorney had argued the amount was unreasonably high.

And tennis star Andre Agassi is pulling out of Wimbledon. The 34-year-old former Wimbledon winner saying he won't take part in next week's tournament because of a hip injury. He notified tournament officials in a written statement. Agassi said he feels the grass courts will aggravate his condition but expects to play in the prestigious event next year. Hope he can do that.

HEMMER: They're going to miss him, too.

COLLINS: Yes.

HEMMER: Very competitive there.

COLLINS: Always a big draw.

HEMMER: That's right. Thank you, Heidi.

COLLINS: Yes.

O'BRIEN: Jack's got the "Question of the Day."

CAFFERTY: He's been whooped (ph) up on...

O'BRIEN: Yes.

CAFFERTY: ... the last couple of tournaments. He's been knocked out in the first round.

HEMMER: A little bit. But so many times, though, you see him come back with such speed.

CAFFERTY: With such what?

HEMMER: With such speed. I mean, this guy can cover a court when he's...

CAFFERTY: Oh, yes. No, he's a great player. I just wonder if he's maybe past his prime, like some of us are.

That thing about the plural of the word mongoose, before we get to the real stuff, Doug in Connecticut says, "I once asked my father the correct plural of mongoose. He said, 'You say, look, a mongoose. Look another one.'"

(LAUGHTER)

HEMMER: Noted.

CAFFERTY: What do you have in common with your U.S. senator? Financial disclosure forms out. Some of them very wealthy, some of them not so wealthy. So we thought we'd sample a little opinion on what people feel they might have in common with these folks.

Keith in Shorewood, Wisconsin, "Our senator, Russ Feingold, not only takes less than his full salary, he also carries a second mortgage on his house. And though Russ does better than most with his Senate salary, it would be great if other states would elect politicians like him."

Anthony in Washington, D.C., "Oh, to whine about my senator or congressmen. However, I live in the nation's capital. We have no representation in Congress, yet we continue to pay our taxes without representation. Something sound wrong with that?"

Mary in Laurel, New York, "How many of us would choose to work at all if we were as wealthy as some in Congress? And would we work at a job where we were so highly scrutinized by the public? Perhaps all I have in common with those who serve our country in Congress is an intense interest in making things better."

And John in Oxford, Connecticut, "I was discussing this very question sitting on my senator's yacht the other day. We were having a good laugh listening to the Enron tapes as we watched some old veteran sitting in his little dinghy phishing. I said, 'He's phishing for better prescription rates.' The senator laughed and said, 'Ha, we'll see that never happens. Let him eat cake.'"

O'BRIEN: Excellent responses. CAFFERTY: All kinds of opinions about those elected folks.

O'BRIEN: Yes.

HEMMER: (UNINTELLIGIBLE) response from Doug, too.

CAFFERTY: Look, there's a mongoose.

O'BRIEN: There's another one.

CAFFERTY: There's another one.

O'BRIEN: That's the best line of the day, for sure.

HEMMER: Thank you, Jack.

CAFFERTY: Yes.

(WEATHER REPORT)

O'BRIEN: Let's take you down to Atlantic City in New Jersey. That is where presidential candidate John Kerry is talking to the New Jersey state AFL-CIO convention. The group has just given the senator its endorsement. You'll recall he canceled most of his events last week, the week of Ronald Reagan's death. So let's listen in to what he's telling them.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Raise the minimum wage, but have a labor secretary who represents the interests of labor in the United States of America.

(APPLAUSE)

KERRY: And not to bring politics into this...

(LAUGHTER)

KERRY: ... but thanks to your voice, scores of people, including me, have won an election or two across this country. I've got news for you. We're going to do it again this November. America will hear your voice loud and clear all the way to the White House.

(APPLAUSE)

O'BRIEN: An enthusiastic reception from the folks at the AFL-CIO convention. Apparently, the senator spent the night at the gaming resort in Atlantic City. He raised a million bucks at Jon Bon Jovi's mansion, where they had a fund raiser last night. Doing all right in the fund raising part of it.

Still to come this morning, criminals stole billions of dollars last year online. All they had to do was ask. We're going to tell you what you can do to protect yourself just ahead.

HEMMER: Also, Afghanistan's President Hamid Karzai coming to Washington, at the White House, in fact, today, looking for help. What kind of reception will he get? What's he looking for? A live report in a moment from the White House as we continue after this.

(COMMERCIAL BREAK)

O'BRIEN: There's a disturbing new trend in online identity theft. Nearly two million Americans were victims of it last year for a total of more than $2 billion. Lisa Sylvester takes a look.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Thieves have found a new way to tap into consumers' bank accounts. They don't even have to steal personal information. They just ask for it.

It's called phishing. Criminals send out phoney e-mails requesting bank information updates with a link to a fake Web site. It's almost impossible to tell the difference between this phoney fleet bank Web site and the real one.

UNIDENTIFIED FEMALE: Even though it may say in your e-mail a legitimate Web site, hidden behind that address is the crook's address.

SYLVESTER: For identity theft victims, clearing their names can take years. Sharon Jones has a pile of letters from creditors demanding payments for bills that are not hers.

SHARON JONES, IDENTITY THEFT VICTIM: It's been a total nightmare, because you never know when something else is going to pop up. So you have to constantly check your credit report.

SYLVESTER: Phishing e-mails have increased 4,000 percent in the past six months, according to the Anti-phishing Working Group, which includes Internet service providers, banks and law enforcement officials. Citibank, eBay and PayPal are the most common targets. But consumers can protect themselves by looking for tip-offs, such as misspelled words and by not clicking on links, even ones that appear legitimate.

UNIDENTIFIED MALE: The most effective thing is to really open up a Web browser window and go directly to the bank yourself. Type in the address into the Web browser rather than relying on the link.

SYLVESTER: The financial and computer industries are working on standards to authenticate e-mail. In the meantime, banks will reimburse victims of credit and checking account scams provided they're reported within two months.

(on camera): There's another growing trend in identity theft called Trojan Horse or Spyware. Consumers are sent a link, and when they've open it they have unknowingly downloaded Spyware software that records every keystroke, including personal financial information.

Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE) O'BRIEN: If you want to learn how to protect yourself from online identity theft, log on to the Web site for the Anti-Phishing -- that's p-h-i-s-h-i-n-g -- Working Group. That's Anti-Phishing, one word, with the "ph" again -- .org -- Bill.

HEMMER: In a moment here, Afghanistan's interim president says there's a growing threat in his country. A live report from the White House in a moment, what's happening there today.

Also, the shifting terror tactics in Saudi Arabia. Is the kingdom doing all it can to keep Americans safe? We'll talk to a security expert who's lived there and worked there ahead in a moment.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

HEMMER: Welcome back, everybody, 9:30 here in New York. Good morning again, and welcome back to AMERICAN MORNING.

The president of Afghanistan right now heading into a meeting in Congress there in Washington, looking for help to see him through the September elections. Hamid Karzai does not enjoy the same popularity he had about two years ago. He has important meeting, though, with the president today at the White House. We'll get you down there in a moment here and figure out the agenda today and what the request is. Stay tuned for more on that.

O'BRIEN: Also this morning, an American's been kidnapped in Saudi Arabia. Several others have been killed. But the State Department had told American companies that their people were not safe in Saudi Arabia. We're going to take a look at the new terrorist tactics there and what thousands of Americans who are there should do.

HEMMER: Also, remember when mom used to say eat your carrots, they're good for your eyes? Did your mom say that?

O'BRIEN: Yes.

HEMMER: Sometimes, sure. Whatever works. Mom was wrong.

You're better off with grapes and strawberries. So says Sanjay, anyway. We're going to talk to Sanjay in a moment here. We'll get to that about preventing vision loss.

O'BRIEN: Interesting. I knew (ph) that. All right, that's ahead.

Afghan President Hamid Karzai has predicted that security problems will increase with elections looming in September. President Karzai is due to address Congress in just a few minutes.

He's going to follow that with a meeting with President Bush in the Oval Office. As you can see, they're assembling there in Congress, still waiting for him. Our congressional correspondent, though, Ed Henry, is on Capitol Hill. He has much more with what to expect this morning.

Nice to see you, Ed. Good morning again.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Soledad.

This is a rare honor for a foreign leader to get, to be able to address a joint meeting of Congress. It shows, obviously, that Afghanistan is a key ally for the United States in the war on terror. It also shows that it is a critical ally in trying to find Osama bin Laden along the Afghan-Pakistan border.

Also, the backdrop here is that the Bush administration, as you mentioned, wants to make sure that Afghanistan pushes ahead with elections in September. That could also play a role in the U.S. elections here this fall. Obviously, if there is a stabilized Afghanistan, if the election moves forward, that could give President Bush a feather in his cap heading into the U.S. election, that there's a stabilized Afghanistan.

Also, while Iraq dominates the headlines these days, we still have 20,000 U.S. troops in Afghanistan. And if the election does not move forward, if the country does not get stabilized, you can bet that Democratic Senator John Kerry will be making that an issue in the presidential campaign here in the United States.

Mr. Karzai is launching an international tour here. He's trying to generate support for his government in advance of those elections, but also generate support for himself.

He's come under fire. There have been charges that he is corrupt. There's been charges he's not doing enough to crack down on the drug trade in Afghanistan. There's been charges that he's been dealing -- cutting too many backroom deals with warlords, and also that Mr. Karzai is not pushing ahead hard enough on democracy. But I can tell you that Republicans and Democrats, like Senate Democratic Leader Tom Daschle, he told CNN yesterday that, while Mr. Karzai has not been perfect, he thinks he's been a strong leader, and that he is the best hope for democracy in Afghanistan -- Soledad.

O'BRIEN: Ed, is the expectation that he's going to get -- Hamid Karzai's going to get a warm reception as he talks to Congress or the opposite?

HENRY: Absolutely. I think that you're going to see support from the Congress. That's why this invitation was extended to him. You're going to see warm support from this Congress, but there are going to be tough questions. Even people like Senator Daschle, who said he supports Karzai, said that nobody can underestimate the challenge ahead for Mr. Karzai and the United States as we move forward toward those elections in September and beyond -- Soledad.

O'BRIEN: Ed Henry is our congressional correspondent. Ed, thanks for that. We'll check in with you again as this gets under way. Appreciate it. CNN, of course, is going to have live coverage of President Bush's Rose Garden news conference with the Afghan president, Hamid Karzai. That happens this morning at 11:25 Eastern Time -- Bill.

HEMMER: Back to the story now in Saudi Arabia. The U.S. government has been urging Americans to leave that country for about two months. White House spokesperson Scott McClellan yesterday saying Americans should "take those advisories very seriously."

Alastair Morrison is chairman of Kroll Security International. He's advised oil companies in the kingdom on security for the past 30 years. He's now our guest live in London.

Thanks for your time, sir. And welcome here to AMERICAN MORNING. How do companies keep their employees safe in that country?

ALASTAIR MORRISON, KROLL SECURITY INTERNATIONAL: Well, up until now, there hasn't been too much of a threat. But over the last 12 months, the terrorists, or the fundamentalists, have obviously decided to go for some fairly soft targets. Hence, over the last particularly couple of months one has seen some pretty bad attacks on the expatriate population.

Every company has a responsibility to care for their employees. And when a situation like this occurs, the company will be taking all the actions they can to try and improve the security. In Saudi Arabia, the armed security is provided by government forces, the national guard, police, or so on. And there's no private security which is allowed to be armed. So the companies are facing quite a problem at the moment.

HEMMER: It is a fact, though, that it's a big country. Riyadh itself is a very big city.

MORRISON: Yes.

HEMMER: Is there a sense of danger today in that city?

MORRISON: I think the problem is that the attacks that have occurred recently have been so random that the feeling among the expatriates and, indeed, among the Saudi nationals themselves, is one of great uncertainty because the people don't really feel safe while they're in their own homes or in the place of work, or indeed the shopping malls or other places that people might go.

HEMMER: I asked you about the companies there working and employing people in Saudi Arabia. What about the country itself, the government of Saudi Arabia? As best you can tell, are they doing enough at this point?

MORRISON: As far as I can tell, yes. And I think the fact that the soft targets, the expatriate population are being attacked, probably illustrates that the terrorists or the fundamentalists appreciate that the other targets, the key infrastructure projects and the members of the government, royal family and so on, are adequately protected. So therefore, they're going for a much easier target. HEMMER: When you hear warnings come out of the White House, like we heard again yesterday, should Americans leave there? Or is that an overreaction?

MORRISON: No, I think that the American government is being very responsible. It's a very dangerous situation at the moment. I think that as the spokesman said yesterday, American citizens, indeed other expatriates, should listen to those advisories.

HEMMER: And the advisories may continue to come. And when they do, we'll listen as well. Alastair Morrison, thanks. Chairman of Kroll Security International, our guest there live in London. Thank you -- Soledad.

O'BRIEN: Well, still to come this morning, we are "Paging Dr. Gupta." He might tell you about something you can eat that might fight off your vision problems. That's just ahead.

HEMMER: I like this story, too. Also, clearing up the confusion over Saddam Hussein. Who exactly will be holding him on the 30th of June? We'll take a look at that.

Hamid Karzai now in Congress on Capitol Hill. Back in a moment as our coverage continues right after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody.

Eat more fruit, see more clearly. A new study says that could be the case. Dr. Sanjay Gupta has this in his focus this morning.

What gives? Good morning.

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

Well, there's a lot of good reasons to eat fruit. Certainly, people have known that for some time. Fiber, nutrients, antioxidants, fruit can also ward off cardiovascular disease or stroke, maybe even Alzheimer's. But now you be able to add another reason to eat fruits, specifically three fruits a day.

This is a new study, a very large study looking at over 70,000 women, nearly 50,000 men, following them over a period of time, trying to figure out how it affected vision, specifically something known as age-related maculopathy or macular degeneration. This is the most common cause of blindness in adults besides glaucoma, and a very, very important thing that people have been trying to focus on for some time.

What they've found in all sorts of different sort of myths about what might ward off this disease, eating three or more fruit servings a day gave you a 36 percent lower risk of age-related macular degeneration as compared to people who ate less, even if they ate up to one-and-a-half servings a day. So, really, it was three servings a day that was so important. Now, there's been a lot of other research as well, looking at other ways to ward off ARM, age-related maculopathy, such as carrots, such as vitamins, all that sort of stuff. They really found that fruits in this particular instance were going to be the best in terms of stacking the decks against vision loss later on in life.

HEMMER: What is it, Sanjay, about fruit that can help eyesight?

GUPTA: You know, it's interesting. There's lots of different proposed mechanisms on this.

One of the most common is that it probably has a lot of antioxidants, specifically. When you talk about age-related macular degeneration, you're talking about a cumulative disease, a disease that really takes place over someone's life, as opposed to something that you're suddenly struck with. So if you're getting the benefit of things like antioxidants, sort of sweeping up the bad cells that are attacking your eyes, that might be your best bet in trying -- in trying to fight it off -- Bill.

HEMMER: So is the focus strictly on fruits, or are there other things where people could help increase their vision?

GUPTA: Well, you know, I mean, a lot of people talk about carrots. And carrots and vision, something that have gone together since we were children, certainly. And that's sort of true and not true.

Carrots do increase your levels of vitamin A, which help preserve normal vision. But they're not so good at warding off this specific thing.

What this study showed, Bill, was that fruits, better than vitamins, better than supplements, and better than most vegetables in terms of warding it off. Macular degeneration, incidentally, again, age-related maculopathy, it's the leading cause of vision loss that's non-surgical besides glaucoma.

Part of the retina actually deteriorates. And every older person, if you live long enough, you're going to be at risk of this. And Bill, people are living longer, so this is becoming more of a concern.

HEMMER: So my banana and raisins every morning at 5:00 a.m., I'm on the right track, right?

GUPTA: That's right. You're not going to need those glasses after a while.

HEMMER: Yes, right. Lasic. Thanks, Sanjay.

GUPTA: Talk to you.

HEMMER: In a moment here, some U.S. border agents upset. They say it has everything to do with the uniforms. Andy's back in a moment, minding their business, and yours as well, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: It's 45 minutes past the hour now. Time to look at some of the other stories making headlines today with Heidi Collins.

Heidi, good morning.

COLLINS: Good morning, Soledad. And good morning once again, everybody.

At this hour, Afghan President Hamid Karzai addressing a joint meeting of Congress. Karzai in Washington today, discussing the security situation in Afghanistan.

(BEGIN VIDEO CLIP)

(APPLAUSE)

HAMID KARZAI, PRESIDENT OF AFGHANISTAN: We have secured an open and inclusive society, where minority languages are accorded official recognition and where the press enjoys unprecedented freedom. We have -- we, the Afghan people, have once again established ourselves as a proud and sovereign nation.

(END VIDEO CLIP)

COLLINS: He will be holding talks with President Bush shortly after his remarks to Congress. The two leaders expected to discuss security issues as well. They'll hold a news conference in the Rose Garden at 11:25 a.m. Eastern Time.

A top homeland security official says authorities have a terror threat -- or believe that a terror threat has been thwarted. Federal law enforcement officials have linked a Somali man, Nuradin Abdi, to a plot to blow up a shopping mall. A detention hearing on his behalf is expected tomorrow.

There appears to be some confusion over the custody of former Iraqi leader Saddam Hussein. Pentagon officials say the U.S. will continue to hold Saddam after the transfer of power on June 30. Earlier on AMERICAN MORNING, Iraq's interim prime minister said negotiations are under way for his handover to the Iraqis.

China says it will host another round of talks on North Korea's nuclear program. Representatives from six nations met last February. The new round of talks will be held in Beijing beginning on June 23. China, the two Koreas, the U.S., Japan, and Russia will be taking part in those discussions.

Campaign 2004, the candidates back on the road this week. President Bush was in Missouri yesterday defending his new Medicare prescription drug plan. Tomorrow, the president will visit troops in Florida.

Meanwhile, the Democratic candidate, John Kerry, speaking to union leaders right now in Atlantic City, New Jersey. A live picture for you there. He'll be holding a roundtable discussion tomorrow with families in Ohio.

Bill and Soledad, back over to you.

O'BRIEN: All right. Heidi, thanks.

Well, some angry border patrol agents don't like the label that they're being stuck with. With that, and a check of the markets this morning as well, Andy Serwer, "Minding Your Business."

Good morning to you.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE" MAGAZINE: Good morning.

Let's talk about the markets first. We'll get to that ironic border patrol story in a moment.

Stocks moving up as we speak, up 64 on the Big Board. What's happening? Lehman Brothers and Boeing reporting their businesses are going very well. Those two stocks are up.

Interesting one here for you. Vail -- yes, that's the ski mountain -- best quarter ever. Skiing season's way over, they're still reporting the numbers, 86 percent up, season pass is doing the trick there. Vail, Beaver Creek, Breckenridge, Keystone, they own those resorts. Best quarter ever for that company.

Delta Airlines reporting that Song, that's their discount carrier, is cutting back one-third of its flights. That's a big deal. Delta was really looking at this business to carry it forward.

Forty-one of its 140 flights being axed. They call it routine slowdown in the summer. Huh? That's what some Wall Street analysts are saying. Others are saying it's simply not working.

And now let's move on to this border patrol story. I love this. Border patrol in Mexico, guys got a bunch of new uniforms the other day. They looked at the label and guess what? The uniforms were made in Mexico.

You know, what can you say here? A lot of the guys were upset, saying, we want to buy American, we want American made, we want -- well, maybe you could get American made uniforms, but I bet you they'd cost a lot more. And then maybe some of the guys would have to get laid off.

You know, it's kind of like it's all about NAFTA. It's a global economy here. So, you know, that kind of thing is inevitable, I believe.

HEMMER: Would they be more upset if they were made in China?

SERWER: Yes, or India. I mean, you know, it's kind of hard to avoid that these days.

O'BRIEN: Right. Exactly. Interesting.

CAFFERTY: Make them in Beaver Creek.

SERWER: Yes.

(CROSSTALK)

CAFFERTY: I'm going to be in Beaver Creek next week.

HEMMER: Oh really? You're not staying in Bachelor Gulch by any chance, are you? No.

CAFFERTY: Say what?

HEMMER: I just had to know. There's a beautiful resort in Beaver Creek.

CAFFERTY: Yes?

SERWER: That's where he's going.

HEMMER: The Bachelor Gulch Ritz.

CAFFERTY: Do they have a golf course?

HEMMER: I think they do, yes.

CAFFERTY: My daughter -- I've got a daughter in Denver and she's made the arrangements. We're going to get together with the kids and...

HEMMER: Oh.

O'BRIEN: You're going on vacation again?

CAFFERTY: ... play a little.

HEMMER: Them is fighting words.

CAFFERTY: Yes. I'm going on maternity leave.

SERWER: No good deed goes...

CAFFERTY: That's correct. Alert those beavers in Beaver Creek, I'm coming.

HEMMER: All right.

CAFFERTY: The "Question of the Day" has to do with how much you think you have in common with your U.S. senator. Dale in Milwaukee writes this: "I don't feel connected to my senators. However, I also understand that it takes a great deal of wealth to run for elective office today. Until we pass meaningful campaign finance reform, we'll always be represented by those with the financial capacity to run and win." Jason in North Carolina writes: "What do I have in common with my state senators? Well, if there's any justice in the world, come November they'll be as unemployed as I am."

And Michelle in Lewistown, New York: "Hillary Clinton and I have the following things in common: we both live in New York, we're both women, we both have short hair, and we both have husbands who cheated on us."

SERWER: Wow. Coming clean on national television.

HEMMER: We're going to end on that note?

CAFFERTY: That would be -- that's all I have at this time. Unless you want to go back to the discussion of the plural for mongoose.

HEMMER: Eight minutes left.

CAFFERTY: Oh, my goodness. So much fun yet to be had here on AMERICAN MORNING.

HEMMER: Buckle up.

O'BRIEN: All right, Jack. Thanks.

Still to come this morning, one last check of the forecast is ahead on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

(WEATHER REPORT)

O'BRIEN: Still ahead this morning on CNN, Afghan interim President Hamid Karzai looking for help in Washington, D.C. We've got live coverage of his Rose Garden news conference with President Bush. That coming up with Daryn Kagan on "CNN LIVE TODAY."

AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

HEMMER: Before we get out of here, Aaron Brown and a preview of what's coming later tonight on "NEWSNIGHT." Here's Aaron.

(BEGIN VIDEO CLIP)

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on the program, remembering a moment in history long forgotten. A church outing, a ship on fire, a tragedy that played out before hundreds of thousands of people. It was New York City's worst disaster prior to 9/11, 100 years ago today. One hundred years ago today, 100 years later, the story is being told again, and our Nissen is telling it. We'll have that, plus all the day's top news stories, morning papers and everything else that makes "NEWSNIGHT" "NEWSNIGHT," CNN tonight, 10 p.m. Eastern -- Bill.

(END VIDEO CLIP)

HEMMER: We'll be there. Aaron, thanks much. See you later tonight on "NEWSNIGHT."

In the meantime we've got to run. Andy has five bucks on Cafferty for the Lakers to beat Detroit tonight, right?

SERWER: Put the (UNINTELLIGIBLE).

HEMMER: Send the series back to L.A.?

CAFFERTY: Mortgage the house and bet it all on Detroit.

HEMMER: Woo!

SERWER: My lunch is paid for. Free lunch.

CAFFERTY: Bet the children's college fund on the Pistons.

SERWER: Everyone else can e-mail in and join me win this bet, if you'd like.

HEMMER: We will see you tomorrow bright and early.

SERWER: He won't take it, but you can e-mail.

HEMMER: He might. We've got to run. Have a great day. Here's Daryn Kagan at the CNN Center.

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