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CNN Live At Daybreak

Ron Reagan's Remarks, Speaking Off The Cuff?; 9/11 Commission Final Hearings; Attacks on Iraq's Oil Industry

Aired June 16, 2004 - 06:31   ET

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


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


CAROL COSTELLO, CNN ANCHOR: The 9/11 plot and the response to the attacks front and center at the commission hearings starting today. It is Wednesday, June 16th. 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.

The final 9/11 Commission hearing begins today. They'll look at the plot leading up to the attacks and the military response.

Key oil pipelines have been attacked in southern Iraq, cutting off that area's crude oil exports. And gunmen in the north killed a top security official for a state-run oil company.

In money news, OPEC's president says he'll go outside the oil cartel and ask other producers to increase their output. Earlier this month, OPEC agreed to boost production in an effort to cool oil prices that had hit 21-year highs.

In culture, Rock the Vote, the drive to register young voters hits the road today. The bus tour begins in Los Angeles and stops in 50 cities. Performers include Hoobastank, the Black Eyed Peas and the Dixie Chicks.

In sports, the Detroit Pistons motored over the L.A. Lakers once again. The 100-87 victory gives the Pistons their first NBA championship in 14 years.

(WEATHER BREAK)

COSTELLO: We may finally know most of what transpired that terrible day September 11th. The 9/11 Commission wraps up its hearings today and tomorrow.

Today, the panel is focusing on the plot leading up to the attacks. One surprising revelation: the September date was not necessarily a firm one. Reports say the attack was first scheduled for earlier in the year, but the hijackers changed their plans.

(BEGIN VIDEO CLIP)

PETER BERGEN, TERRORISM ANALYST: They felt sufficiently comfortable that the plot hadn't been penetrated in any way, that they could take their time to really get it right by their lights. I think it's actually quite bold of them.

(END VIDEO CLIP)

COSTELLO: Tomorrow is the last day of testimony. The panel's final report is due out by the end of next month.

A preliminary draft of that report is already in circulation though. "The New York Times" is reporting the nation's air defense response was slow and confused. The paper quotes this passage from the report: "On the morning of 9/11, the existing protocol was unsuited in every respect for what was about to happen. What ensued was a hurried attempt to create an improvised defense by officials who had never encountered or trained against the situation they faced."

Thomas Kean and Lee Hamilton, co-chair of the 9/11 Commission, will be guests on "AMERICAN MORNING." That will come your way in the 8:00 a.m. Eastern hour.

The Saudis are promising more action in hunting down and killed terrorists, but negotiation is not in the equation. Islamic militants holding American Paul Johnson captive want an exchange. These chilling pictures of Johnson were released on an Islamic Web site. The kidnappers want Saudi Arabia to release al Qaeda prisoners.

The U.S. State Department has now urged all Americans to leave Saudi Arabia, and the State Department has been in touch with members of Johnson's family, who are now in seclusion in New Jersey.

John Kerry is having breakfast this morning with supporters in Ohio. It's his seventh visit to the key battleground state. Also on the menu, an endorsement from the "Philadelphia Daily News." Later this afternoon, Kerry travels to Washington for some private meetings.

President Bush is spending the morning in Florida. He's talking with troops at MacDill Air Force Base near Tampa. A little less than four hours from now, his speech will be broadcast live to troops in Iraq and Afghanistan. He'll also get a briefing on the war on terrorism.

In the meantime, a controversy is brewing over remarks made by the son of President Ronald Reagan. Was it a criticism of President Bush? Our Brian Todd takes a look.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): The comment during a eulogy for his father was softly worded.

RON REAGAN, RONALD REAGAN'S SON: Dad was also a deeply, unabashedly religious man. But he never made the fatal mistake of so many politicians, wearing his faith on his sleeve to gain political advantage.

TODD: A number of Democratic and Republican analysts we spoke to, who did not want to be named, interpreted this as a criticism of President Bush. Others say that's a leap. Ron Reagan isn't saying. We called his office for clarification and were told he wouldn't comment. However Reagan meant it, the president was pinned for a response.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I -- whether or not a politician should wear their -- I've always said I think it's very important for someone not to try to take the speck out of somebody's else's eye when they may have a log in their own. In other words, I'm very mindful about saying, you know, oh, vote for me, I'm more religious than my neighbor.

And I think it's -- I think it's perfectly -- I think it's important for people of religion to serve. I think it is very important for people who are serving to make sure there's a separation of church and state.

TODD: While we don't know for sure if the Reagan comment was a salvo at Bush, we do know there is animosity. During the Republican National Convention four years ago, Ron Reagan was quoted in "The Washington Post": "The elephant sitting in the corner is that George W. Bush is simply unqualified for the job. What's his accomplishment? That he's no longer an obnoxious drunk?"

But the criticisms have also come over policy, and they're not just coming from Ron Reagan. Nancy Reagan is now leading a campaign against President Bush's restrictions on stem cell research.

NANCY REAGAN, FORMER FIRST LADY: Now, science has presented us with a hope called stem cell research, which may provide our scientists with many answers they have had for so long been beyond our grasp. I just don't see how we can turn our backs on this. There are so many diseases that can be cured or at least helped. We have lost so much time already, and I just really can't bear to lose any more.

TODD: In the end, those may be the comments that weigh most heavily. Many Republicans dismiss Ron Reagan's politics as liberal. They cannot dismiss Nancy Reagan.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: You've heard of the do-not-call national registry. So, how about a do-not-spam registry? The latest on a national effort to discourage unwanted e-mail. That story is coming up.

And later, in Sin City, why residents are upset about this mural of a naked woman. We'll be back.

(COMMERCIAL BREAK)

COSTELLO: Time for a little business buzz now. The government isn't sure how to stop unwanted e-mail from clogging your inbox.

Carrie Lee has more on this story live from the Nasdaq Marketsite.

Is there nothing they can do? CARRIE LEE, CNN FINANCIAL NEWS: Well, they're not going to create a do-not-e-mail registry here, similar to the do-not-call phone registry. Interesting. The FTC says that they're concerned that senders of unwanted sales pitches might actually be able to mine such a registry for names. So no national do-not-spam e-mail registry, at least not immediately.

What regulators want to do instead is try to implement technology that would make it harder to send unwanted e-mails anonymously, so there will always be a name attached to the e-mail, and that way they will be more easily traceable.

So, the do-not-call phone registry was successful, but it doesn't look like it's going to happen, Carol, as far as e-mails are concerned, at least not in the immediate future.

COSTELLO: Darn. A quick look at the futures before you go.

LEE: Things are looking pretty positive this morning. It looks like the buying we saw yesterday will continue into today's session. Of course, we have some comments from Fed chief Alan Greenspan, as well as some inflation numbers, sort of abating investor fears that we could see fast interest rate hikes.

One stock to watch this morning, Bear Stearns, out with profits this morning. Wall Street is looking for $2.23 a share in this second quarter.

Back to you.

COSTELLO: Thank you, Carrie Lee, live from the Nasdaq Marketsite.

The commission investigating the 9/11 attack is moving into its final hearings. Officials from the CIA and the FBI are expected to face questions today.

Judlyne Lilly of radio station WTOP in Washington joins us live by phone to tell us what more we can expect.

Good morning, Judlyne.

JUDLYNE LILLY, WTOP ANCHOR: Good morning, Carol.

Well, you know, these are the final two days, like you said, of the hearings. But, you know, the anguish and pain will never end for those injured or the families of those who died in the September 11 attacks.

But these hearings, however, are trying to determine what happened when and why. We will hear from the FBI and the CIA, and various and sundry agents who were involved prior to the September 11 attacks.

We've heard about "The New York Times" report that NORAD and the DOD were not ready for something like this. In a sense, you have to look back to Pearl Harbor to determine whether or not they were ready. However, the attack on Pearl Harbor happened right in the heart of the Navy, and so they were there and they were ready. However, this was at the World Trade Center.

So, you will be hearing from the commission members who will be asking the FBI and CIA agents what led up to this, what could have happened, what should have happened. And at that point then they will then put together their final report, which will be available in July.

COSTELLO: You know, I was just going to ask you that. Will anybody be able to read that final report?

LILLY: Of course. Of course. You can't have had these hearings all of this time with testimony from Condoleezza Rice, from President Clinton and George Tenet, who is leaving the CIA, without some sort of report coming out as to what it is that the United States should have been doing and should be doing now to prevent anymore attacks on U.S. soil.

COSTELLO: Judlyne Lilly joining us live from Washington, D.C. this morning. Thank you, Judlyne.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

A group linked to al Qaeda has posted a video of kidnapped American hostage Paul Johnson on its Web site. They have threatened to kill the Lockheed Martin employee on Friday if their demands are not met.

Iran has threatened to revive parts of its nuclear program. Iran's president is opposed to a pending Atomic Energy Agency resolution that criticizes his country for the lack of cooperation with U.N. inspectors.

In money news, a big buyout. MGM Mirage is making a bid to buy Mandalay Resort Group for nearly $5 billion. It will create the gambling industry's biggest casino operation.

In pop culture, Britney Spears cancels her 36-city Onyx Hotel tour. Blame it on a bad left knee. She hurt it doing a music video and has to rest up after arthroscopic surgery.

In sports, Cincinnati ends a seven-game losing streak, beating Texas 5-4. But alas, Ken Griffey, Jr. remains stuck on home run No. 499. And the Rangers Kenny Rogers failed to become the first 10-game winner of the season.

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you.

You could already be a millionaire. After all, the number of millionaires is growing. Ahead, just how many millionaires are there out there? And feeding the skin. The vital vitamins in sunscreen that could protect you from the sun's rays. We'll take a closer look. This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: We've heard about the benefits of getting vitamins from our diets, but how important is it to get vitamins in our sunscreen? You never thought about that, did you?

Joining us now (AUDIO GAP).

Can you really get vitamins from sunscreen?

LISA DRAYER, REGISTERED DIETITIAN: You can, Carol, these days, and you will find a lot of them on shelves; that is, sunscreens that have vitamins added to them.

But the question is: What's the science behind this? Well, at least one recent study has found that a combination of vitamins C and E does provide some protection against damage caused by the sun's ultraviolet rays.

So, this particular study was from Duke University, and what they found was that when animal skin was irradiated with ultraviolet light the combination of vitamins C and E applied topically provided a four- fold protection against sunburns.

COSTELLO: Really?

DRAYER: So, it was four times the amount of sunburn.

And I spoke with Vincent Delayo (ph). He's a dermatologist in New York City. He says this finding is consistent with the fact that vitamins will increase the sun protection factor by about 2 to 4. So, if you have an SPF of 15, you have vitamins in that sunscreen, you're really probably getting an SPF of about 19. Now...

COSTELLO: Yes, but the big question, Lisa, is how much vitamin C and E have to be in that sunscreen? I mean, if they just put a trace in there, is that going to help you?

DRAYER: Not necessarily. And we don't know exactly how much of each of these vitamins will be enough to have a beneficial effect. And different sunscreens can have different amounts. It's not regulated like a lot of the supplements we've talked about. So, certainly we do need to see more research before we know the amount.

COSTELLO: So, what do you look for?

DRAYER: Right. Well, there are some important things that you do want to look for in a sunscreen. An SPF, sun protection factor, of 15 is the minimum. So 15 will protect -- will prevent 93 percent of the ultraviolet rays from getting through. An SPF of 30 would block 97 percent. This is compared to only 50 percent with an SPF of 2. You also want to go for a sunscreen with broad spectrum protection. That is, protection against both UVA and UVB rays. UVB rays are the ones that cause sunburn, and it can lead to skin cancer. But UVA rays are dangerous as well, and they can penetrate the skin pretty deeply.

In addition, the actual blocks can be physical or chemical. The chemical blocks go by names like parcel 1787 (ph), solicite (ph), cinemates (ph) and benzaphenones (ph). But physical blocks include zinc oxide and titanium bioxides (ph). These reflect the light way instead of absorbing them into the skin.

And you can choose a water-resistant sunscreen if you know you will be swimming. However, these may lose their effectiveness after 80 minutes in the water. So, you do want to be sure to reapply.

COSTELLO: All right, we will. Good advice this morning. Lisa Drayer, many thanks to you, live from New York.

We've been trying to get Brent Sadler, CNN's Brent Sadler all morning, because there have been attacks on the oil industry inside of Iraq. In fact, there was an attack this morning on an oil pipeline, and it's virtually shut down oil exports from Iraq, at least for a time.

So, Brent Sadler, where exactly are you? You're on Basra somewhere.

BRENT SADLER, CNN CORRESPONDENT: Carol, yes, I'm just outside Basra near the oil refinery. I'm standing next to a lake of crude oil that burst out of this strategic pipeline that came under an act of sabotage during the hours of darkness.

I can tell you that the toxicity levels are high. The explosive levels are high. Workers here, under a blistering sun here, are trying to do something about this enormous problem.

I can see crude oil bubbling up from this lake. Concerns, as I say, that one spark could send the whole thing sky high. So, a lot of concern about the safety issue right here on the ground.

But in terms of the overall picture, this has been a devastating series of attacks over the past several days. It's now resulted in a complete shutdown of Iraq's oil exports from the south of the country. These exports go from land to two major crude terminals offshore, and ships load up those terminals. And really, this whole industry has now been brought to a standstill from this part of Iraq.

Add to that, difficulties in the north, a drop really of exports going from there because of a succession of similar attacks.

So, really, as the Iraqi oil minister says in his own words, Iraq's oil industry has now had war declared upon it. So, it's a very critical situation right here at the moment -- Carol.

COSTELLO: Brent, how were these attacks carried out on the pipeline? What happened?

SADLER: Well, you're getting insurgents, saboteurs, managing to slip through during the hours of darkness and attacking what's known as the strategic piping network. This network covers vastly uninhabited areas, difficult to control, difficult to patrol from the security aspect.

This one, however, is just a few miles from Basra's main oil refinery. So, an edacious -- an audacious, rather, a nighttime attack that has resulted in a backlog of crude oil shooting down the pipeline and gushing into the sky, creating this large lake which I am now standing next to.

In terms of how long it will be before they get back online, they're talking about several days, but no precise indication of how long Iraq's vital money earner, the crude oil business, will be offline.

And the bigger picture is that the more the insurgents attack this crucial industry the more that serves to undermine U.S. efforts to stabilize this country, to provide funding for reconstruction efforts, as this country moves into the critical phase towards the handover of sovereignty at the end of this month -- Carol.

COSTELLO: Which is fast approaching. Brent Sadler somewhere near the oil fields right outside of Basra, Iraq. Stay safe, Brent. Thank you.

We're back after a quick break, but first the latest headlines for you.

(COMMERCIAL BREAK)

COSTELLO: Well, we don't have time for the new mug questions.

CHAD MYERS, CNN METEOROLOGIST: Yes.

COSTELLO: But we do have time to reveal the winner of yesterday's mug questions.

MYERS: Getting that one right there. The questions were: What was the name of the camp that Kyle Petty is putting together for his son, Adam, and his wife, obviously, Patty, doing the same thing? That was the Victory Junction Gang Camp. And, according to Diana Muriel's report, what was the estimated 2004 Summer Olympic cost? Eight- billion dollar to put that Games together.

COSTELLO: And congratulations...

MYERS: Michelle Matthews of Boston, Massachusetts.

COSTELLO: Congratulations, Michelle. The cup is in the mail.

I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.

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 16, 2004 - 06:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The 9/11 plot and the response to the attacks front and center at the commission hearings starting today. It is Wednesday, June 16th. 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.

The final 9/11 Commission hearing begins today. They'll look at the plot leading up to the attacks and the military response.

Key oil pipelines have been attacked in southern Iraq, cutting off that area's crude oil exports. And gunmen in the north killed a top security official for a state-run oil company.

In money news, OPEC's president says he'll go outside the oil cartel and ask other producers to increase their output. Earlier this month, OPEC agreed to boost production in an effort to cool oil prices that had hit 21-year highs.

In culture, Rock the Vote, the drive to register young voters hits the road today. The bus tour begins in Los Angeles and stops in 50 cities. Performers include Hoobastank, the Black Eyed Peas and the Dixie Chicks.

In sports, the Detroit Pistons motored over the L.A. Lakers once again. The 100-87 victory gives the Pistons their first NBA championship in 14 years.

(WEATHER BREAK)

COSTELLO: We may finally know most of what transpired that terrible day September 11th. The 9/11 Commission wraps up its hearings today and tomorrow.

Today, the panel is focusing on the plot leading up to the attacks. One surprising revelation: the September date was not necessarily a firm one. Reports say the attack was first scheduled for earlier in the year, but the hijackers changed their plans.

(BEGIN VIDEO CLIP)

PETER BERGEN, TERRORISM ANALYST: They felt sufficiently comfortable that the plot hadn't been penetrated in any way, that they could take their time to really get it right by their lights. I think it's actually quite bold of them.

(END VIDEO CLIP)

COSTELLO: Tomorrow is the last day of testimony. The panel's final report is due out by the end of next month.

A preliminary draft of that report is already in circulation though. "The New York Times" is reporting the nation's air defense response was slow and confused. The paper quotes this passage from the report: "On the morning of 9/11, the existing protocol was unsuited in every respect for what was about to happen. What ensued was a hurried attempt to create an improvised defense by officials who had never encountered or trained against the situation they faced."

Thomas Kean and Lee Hamilton, co-chair of the 9/11 Commission, will be guests on "AMERICAN MORNING." That will come your way in the 8:00 a.m. Eastern hour.

The Saudis are promising more action in hunting down and killed terrorists, but negotiation is not in the equation. Islamic militants holding American Paul Johnson captive want an exchange. These chilling pictures of Johnson were released on an Islamic Web site. The kidnappers want Saudi Arabia to release al Qaeda prisoners.

The U.S. State Department has now urged all Americans to leave Saudi Arabia, and the State Department has been in touch with members of Johnson's family, who are now in seclusion in New Jersey.

John Kerry is having breakfast this morning with supporters in Ohio. It's his seventh visit to the key battleground state. Also on the menu, an endorsement from the "Philadelphia Daily News." Later this afternoon, Kerry travels to Washington for some private meetings.

President Bush is spending the morning in Florida. He's talking with troops at MacDill Air Force Base near Tampa. A little less than four hours from now, his speech will be broadcast live to troops in Iraq and Afghanistan. He'll also get a briefing on the war on terrorism.

In the meantime, a controversy is brewing over remarks made by the son of President Ronald Reagan. Was it a criticism of President Bush? Our Brian Todd takes a look.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): The comment during a eulogy for his father was softly worded.

RON REAGAN, RONALD REAGAN'S SON: Dad was also a deeply, unabashedly religious man. But he never made the fatal mistake of so many politicians, wearing his faith on his sleeve to gain political advantage.

TODD: A number of Democratic and Republican analysts we spoke to, who did not want to be named, interpreted this as a criticism of President Bush. Others say that's a leap. Ron Reagan isn't saying. We called his office for clarification and were told he wouldn't comment. However Reagan meant it, the president was pinned for a response.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I -- whether or not a politician should wear their -- I've always said I think it's very important for someone not to try to take the speck out of somebody's else's eye when they may have a log in their own. In other words, I'm very mindful about saying, you know, oh, vote for me, I'm more religious than my neighbor.

And I think it's -- I think it's perfectly -- I think it's important for people of religion to serve. I think it is very important for people who are serving to make sure there's a separation of church and state.

TODD: While we don't know for sure if the Reagan comment was a salvo at Bush, we do know there is animosity. During the Republican National Convention four years ago, Ron Reagan was quoted in "The Washington Post": "The elephant sitting in the corner is that George W. Bush is simply unqualified for the job. What's his accomplishment? That he's no longer an obnoxious drunk?"

But the criticisms have also come over policy, and they're not just coming from Ron Reagan. Nancy Reagan is now leading a campaign against President Bush's restrictions on stem cell research.

NANCY REAGAN, FORMER FIRST LADY: Now, science has presented us with a hope called stem cell research, which may provide our scientists with many answers they have had for so long been beyond our grasp. I just don't see how we can turn our backs on this. There are so many diseases that can be cured or at least helped. We have lost so much time already, and I just really can't bear to lose any more.

TODD: In the end, those may be the comments that weigh most heavily. Many Republicans dismiss Ron Reagan's politics as liberal. They cannot dismiss Nancy Reagan.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: You've heard of the do-not-call national registry. So, how about a do-not-spam registry? The latest on a national effort to discourage unwanted e-mail. That story is coming up.

And later, in Sin City, why residents are upset about this mural of a naked woman. We'll be back.

(COMMERCIAL BREAK)

COSTELLO: Time for a little business buzz now. The government isn't sure how to stop unwanted e-mail from clogging your inbox.

Carrie Lee has more on this story live from the Nasdaq Marketsite.

Is there nothing they can do? CARRIE LEE, CNN FINANCIAL NEWS: Well, they're not going to create a do-not-e-mail registry here, similar to the do-not-call phone registry. Interesting. The FTC says that they're concerned that senders of unwanted sales pitches might actually be able to mine such a registry for names. So no national do-not-spam e-mail registry, at least not immediately.

What regulators want to do instead is try to implement technology that would make it harder to send unwanted e-mails anonymously, so there will always be a name attached to the e-mail, and that way they will be more easily traceable.

So, the do-not-call phone registry was successful, but it doesn't look like it's going to happen, Carol, as far as e-mails are concerned, at least not in the immediate future.

COSTELLO: Darn. A quick look at the futures before you go.

LEE: Things are looking pretty positive this morning. It looks like the buying we saw yesterday will continue into today's session. Of course, we have some comments from Fed chief Alan Greenspan, as well as some inflation numbers, sort of abating investor fears that we could see fast interest rate hikes.

One stock to watch this morning, Bear Stearns, out with profits this morning. Wall Street is looking for $2.23 a share in this second quarter.

Back to you.

COSTELLO: Thank you, Carrie Lee, live from the Nasdaq Marketsite.

The commission investigating the 9/11 attack is moving into its final hearings. Officials from the CIA and the FBI are expected to face questions today.

Judlyne Lilly of radio station WTOP in Washington joins us live by phone to tell us what more we can expect.

Good morning, Judlyne.

JUDLYNE LILLY, WTOP ANCHOR: Good morning, Carol.

Well, you know, these are the final two days, like you said, of the hearings. But, you know, the anguish and pain will never end for those injured or the families of those who died in the September 11 attacks.

But these hearings, however, are trying to determine what happened when and why. We will hear from the FBI and the CIA, and various and sundry agents who were involved prior to the September 11 attacks.

We've heard about "The New York Times" report that NORAD and the DOD were not ready for something like this. In a sense, you have to look back to Pearl Harbor to determine whether or not they were ready. However, the attack on Pearl Harbor happened right in the heart of the Navy, and so they were there and they were ready. However, this was at the World Trade Center.

So, you will be hearing from the commission members who will be asking the FBI and CIA agents what led up to this, what could have happened, what should have happened. And at that point then they will then put together their final report, which will be available in July.

COSTELLO: You know, I was just going to ask you that. Will anybody be able to read that final report?

LILLY: Of course. Of course. You can't have had these hearings all of this time with testimony from Condoleezza Rice, from President Clinton and George Tenet, who is leaving the CIA, without some sort of report coming out as to what it is that the United States should have been doing and should be doing now to prevent anymore attacks on U.S. soil.

COSTELLO: Judlyne Lilly joining us live from Washington, D.C. this morning. Thank you, Judlyne.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

A group linked to al Qaeda has posted a video of kidnapped American hostage Paul Johnson on its Web site. They have threatened to kill the Lockheed Martin employee on Friday if their demands are not met.

Iran has threatened to revive parts of its nuclear program. Iran's president is opposed to a pending Atomic Energy Agency resolution that criticizes his country for the lack of cooperation with U.N. inspectors.

In money news, a big buyout. MGM Mirage is making a bid to buy Mandalay Resort Group for nearly $5 billion. It will create the gambling industry's biggest casino operation.

In pop culture, Britney Spears cancels her 36-city Onyx Hotel tour. Blame it on a bad left knee. She hurt it doing a music video and has to rest up after arthroscopic surgery.

In sports, Cincinnati ends a seven-game losing streak, beating Texas 5-4. But alas, Ken Griffey, Jr. remains stuck on home run No. 499. And the Rangers Kenny Rogers failed to become the first 10-game winner of the season.

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you.

You could already be a millionaire. After all, the number of millionaires is growing. Ahead, just how many millionaires are there out there? And feeding the skin. The vital vitamins in sunscreen that could protect you from the sun's rays. We'll take a closer look. This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: We've heard about the benefits of getting vitamins from our diets, but how important is it to get vitamins in our sunscreen? You never thought about that, did you?

Joining us now (AUDIO GAP).

Can you really get vitamins from sunscreen?

LISA DRAYER, REGISTERED DIETITIAN: You can, Carol, these days, and you will find a lot of them on shelves; that is, sunscreens that have vitamins added to them.

But the question is: What's the science behind this? Well, at least one recent study has found that a combination of vitamins C and E does provide some protection against damage caused by the sun's ultraviolet rays.

So, this particular study was from Duke University, and what they found was that when animal skin was irradiated with ultraviolet light the combination of vitamins C and E applied topically provided a four- fold protection against sunburns.

COSTELLO: Really?

DRAYER: So, it was four times the amount of sunburn.

And I spoke with Vincent Delayo (ph). He's a dermatologist in New York City. He says this finding is consistent with the fact that vitamins will increase the sun protection factor by about 2 to 4. So, if you have an SPF of 15, you have vitamins in that sunscreen, you're really probably getting an SPF of about 19. Now...

COSTELLO: Yes, but the big question, Lisa, is how much vitamin C and E have to be in that sunscreen? I mean, if they just put a trace in there, is that going to help you?

DRAYER: Not necessarily. And we don't know exactly how much of each of these vitamins will be enough to have a beneficial effect. And different sunscreens can have different amounts. It's not regulated like a lot of the supplements we've talked about. So, certainly we do need to see more research before we know the amount.

COSTELLO: So, what do you look for?

DRAYER: Right. Well, there are some important things that you do want to look for in a sunscreen. An SPF, sun protection factor, of 15 is the minimum. So 15 will protect -- will prevent 93 percent of the ultraviolet rays from getting through. An SPF of 30 would block 97 percent. This is compared to only 50 percent with an SPF of 2. You also want to go for a sunscreen with broad spectrum protection. That is, protection against both UVA and UVB rays. UVB rays are the ones that cause sunburn, and it can lead to skin cancer. But UVA rays are dangerous as well, and they can penetrate the skin pretty deeply.

In addition, the actual blocks can be physical or chemical. The chemical blocks go by names like parcel 1787 (ph), solicite (ph), cinemates (ph) and benzaphenones (ph). But physical blocks include zinc oxide and titanium bioxides (ph). These reflect the light way instead of absorbing them into the skin.

And you can choose a water-resistant sunscreen if you know you will be swimming. However, these may lose their effectiveness after 80 minutes in the water. So, you do want to be sure to reapply.

COSTELLO: All right, we will. Good advice this morning. Lisa Drayer, many thanks to you, live from New York.

We've been trying to get Brent Sadler, CNN's Brent Sadler all morning, because there have been attacks on the oil industry inside of Iraq. In fact, there was an attack this morning on an oil pipeline, and it's virtually shut down oil exports from Iraq, at least for a time.

So, Brent Sadler, where exactly are you? You're on Basra somewhere.

BRENT SADLER, CNN CORRESPONDENT: Carol, yes, I'm just outside Basra near the oil refinery. I'm standing next to a lake of crude oil that burst out of this strategic pipeline that came under an act of sabotage during the hours of darkness.

I can tell you that the toxicity levels are high. The explosive levels are high. Workers here, under a blistering sun here, are trying to do something about this enormous problem.

I can see crude oil bubbling up from this lake. Concerns, as I say, that one spark could send the whole thing sky high. So, a lot of concern about the safety issue right here on the ground.

But in terms of the overall picture, this has been a devastating series of attacks over the past several days. It's now resulted in a complete shutdown of Iraq's oil exports from the south of the country. These exports go from land to two major crude terminals offshore, and ships load up those terminals. And really, this whole industry has now been brought to a standstill from this part of Iraq.

Add to that, difficulties in the north, a drop really of exports going from there because of a succession of similar attacks.

So, really, as the Iraqi oil minister says in his own words, Iraq's oil industry has now had war declared upon it. So, it's a very critical situation right here at the moment -- Carol.

COSTELLO: Brent, how were these attacks carried out on the pipeline? What happened?

SADLER: Well, you're getting insurgents, saboteurs, managing to slip through during the hours of darkness and attacking what's known as the strategic piping network. This network covers vastly uninhabited areas, difficult to control, difficult to patrol from the security aspect.

This one, however, is just a few miles from Basra's main oil refinery. So, an edacious -- an audacious, rather, a nighttime attack that has resulted in a backlog of crude oil shooting down the pipeline and gushing into the sky, creating this large lake which I am now standing next to.

In terms of how long it will be before they get back online, they're talking about several days, but no precise indication of how long Iraq's vital money earner, the crude oil business, will be offline.

And the bigger picture is that the more the insurgents attack this crucial industry the more that serves to undermine U.S. efforts to stabilize this country, to provide funding for reconstruction efforts, as this country moves into the critical phase towards the handover of sovereignty at the end of this month -- Carol.

COSTELLO: Which is fast approaching. Brent Sadler somewhere near the oil fields right outside of Basra, Iraq. Stay safe, Brent. Thank you.

We're back after a quick break, but first the latest headlines for you.

(COMMERCIAL BREAK)

COSTELLO: Well, we don't have time for the new mug questions.

CHAD MYERS, CNN METEOROLOGIST: Yes.

COSTELLO: But we do have time to reveal the winner of yesterday's mug questions.

MYERS: Getting that one right there. The questions were: What was the name of the camp that Kyle Petty is putting together for his son, Adam, and his wife, obviously, Patty, doing the same thing? That was the Victory Junction Gang Camp. And, according to Diana Muriel's report, what was the estimated 2004 Summer Olympic cost? Eight- billion dollar to put that Games together.

COSTELLO: And congratulations...

MYERS: Michelle Matthews of Boston, Massachusetts.

COSTELLO: Congratulations, Michelle. The cup is in the mail.

I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.

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