Return to Transcripts main page
CNN Live At Daybreak
Status of American Paul Johnson; Attacks on Major Oil Pipeline in Iraq
Aired June 16, 2004 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A day after they were attacked, Iraq's oil pipelines are hit again.
It is Wednesday, June 16.
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 right now.
In southern Iraq, saboteurs attacked two key oil pipelines for a second day in a row, cutting off that area's crude oil exports. And in the north, gunmen kill a top security official for a state-run oil company.
The final hearings of the 9/11 Commission begin this morning. Among the topics, a look at the plot leading up to the attacks.
In money news, Alan Greenspan says the U.S. economy has legs. He really did say it. It means the economy is recovering, so analysts think any rise in interest rates will probably be gradual.
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 included Hoobastank, the Black Eyed Peas and the Dixie Chicks.
In sports, it was a Motor City manhandling of the Los Angeles Lakers. The Detroit Pistons dominated the Lakers 100-87, to win their first NBA title in 14 years. And they're still partying this morning in Detroit -- Chad.
CHAD MYERS, CNN CORRESPONDENT: Some amateur video out of Denver from last night. A little south there, south of the city. A tornado on the ground. It was a funnel for a while and then it finally did touch down. No report of too much damage, way out there in the middle of -- well, it's not nowhere, but you can see nowhere from there. Scattered rain showers and thunderstorms throughout the Denver area yesterday. Actually, 13 tornadoes reported yesterday across the country. And probably that many today. It could be somewhere around that many, not an outbreak, but certainly some showers and thunderstorms that will be rotating today.
(WEATHER REPORT)
COSTELLO: There will be no negotiating. Those words from Saudi officials this morning. So American Paul Johnson remains in captivity, his neck bandaged and taped.
Is there a next step?
CNN's Bill Prasad joins us live from Washington with the latest -- good morning, Bill.
BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.
We do not negotiate with terrorists. That's the word this morning from the State Department and the Saudi government. It sets up a dangerous stalemate that is now being played out on videotape.
(BEGIN VIDEOTAPE)
PAUL JOHNSON, JR.: I'm an American out of the United States, Marshal Johnson, Jr.
PRASAD (voice-over): He is blindfolded, his shirt torn, his neck bandaged. The captive says he is 49-year-old Paul Johnson. He was kidnapped Saturday while in Saudi Arabia working for Lockheed Martin. The heavily edited videotape was released on an Islamic militant Web site.
A masked gunman speaks on the tape. He says he is Abdel Aziz al- Muqrin, the military leader of al Qaeda in Saudi Arabia. He demands the release of prisoners being held in Saudi custody and the withdrawal of all Westerners from the Arabian Peninsula. He gave a 72 hour deadline. If it is not met, he says Johnson will be executed.
Johnson's family has begged for his release.
PAUL JOHNSON III, SON OF KIDNAPPED AMERICAN: We are extremely distraught by this unforeseen situation and continue to pray for the safe and speedy return of my father.
PRASAD: In Iraq, saboteurs attacked a key oil pipeline. Gunmen also fatally shot the security chief for Iraq's northern oil company. Insurgents continue to target those who are part of the new Iraqi government.
DAN SENOR, COALITION SPOKESMAN: This is a government that seems prepared for the fact that they will be tested post-June 30th.
(END VIDEOTAPE)
PRASAD: Officials say U.S. resolve is now being tested on two fronts -- by insurgents in Iraq and by kidnappers in Saudi Arabia -- Carol, back to you.
COSTELLO: Bill Prasad live in D.C. this morning.
Thank you. The commission investigating the September 11 attacks gets its final round of hearings. They'll be under way later this morning. The panel focusing on the plot leading up to the attacks. One surprising revelation this week -- 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, CNN 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 mean it's actually quite ballsy of them.
(END VIDEO CLIP)
COSTELLO: Tomorrow is the final day of testimony. The panel's final report due out by the end of next month.
The government fund set up to compensate 9/11 victims' families has handed out nearly $7 billion. The deadline to file a claim expired at midnight. The fund processed death claims for more than 99 percent of eligible families. The average award tops $2 million. The fund also compensated more than 4,000 people injured in the attacks.
Another attack on an oil pipeline in Iraq. It happened this morning and it's caused quite a bit of damage. Coupled with two other attacks in Basra and Kirkuk, it means all Iraqi crude oil exports from the Gulf are now cut off, at least for a time.
Live to Baghdad and our chief international correspondent, Christiane Amanpour -- hello, Christiane.
CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Yes.
Carol, there have been yet more acts of sabotage on the Iraqi key infrastructure, and that is its oil industry. According to a spokesman for the Coalition Provisional Authority, that is the occupation forces, this, the headquarters in the south, in Basra, all oil exports through the two main terminals in the Persian Gulf have been halted. Apparently the main pipeline along the Faw Peninsula was badly damaged by sabotage earlier Tuesday. And a second pipeline has been shut down as a precautionary measure until the engineers can repair the fractures on that piping.
This apparently, according to the Iraqi officials, could take some seven to 10 days to repair. And in the meantime, it could cost Iraq about a billion dollars in revenue, which they can ill afford to spare. The oil industry is meant to be the lifeblood of this country, not just to finance reconstruction, but just to get the whole economy up and running. And there have been a number of acts of sabotage and attack on this infrastructure.
Even today in the north, in the northern oil fields, there has been an attack on a pipeline near the Kirkuk area, and there have been several attacks in that area over the last several days, with burning pipelines and a sort of disruption in any kind of export from the northern area.
Compounded to that attack on the actual oil pipeline was the assassination today, early this morning, of Mr. Talabani, Ghazi Talabani, who is the chief security official for the northern oil company. He was killed up there in the north earlier today. So that is having also a devastating blow up there.
Now, to the west of where we are, in the infamous Sunni Triangle, near Ramadi, there has been an explosion, which crippled a couple of cars. U.S. soldiers immediately rushed to the area and sealed it off. The latest reports we're getting from U.S. officials here in Baghdad is that five Iraqis were wounded. We are still trying to get more information on exactly the number of casualties. Earlier we had reported that there may have been some killed. We still don't have that fully confirmed, but we'll get back to you with the full details. But so far we know that five Iraqis have been wounded in that attack -- Carol.
COSTELLO: Christiane Amanpour live from Baghdad this morning.
Thank you.
In news across America this Wednesday, there is a growing division among Baptists. At its annual conference, the Southern Baptist Convention voted to withdraw from the global Baptist organization it founded nearly a century ago. Among the complaints is that the world alliance is allowing women to become preachers and that they are promoting anti-American thinking.
We're learning a lot more about how much Michael Jackson paid to settle the 1993 child molestation suit against him. Court TV says he paid more than $20 million. The alleged victim from 1993 may be called to testify in Jackson's upcoming molestation trial. CNN did attempt to get a comment from Jackson's spokesperson, but our calls went unanswered.
A moderate earthquake shook the fish about 40 miles off the coast of San Diego. The quake caused only minor damage, but it did force the evacuation of Sea World in San Diego. A smaller, but still strong aftershock, hit just two hours later.
Apologies to the Arab world. A closer look at the ads that begin running on Arab TV today and what their impact might be.
Plus, the youngest son of President Ronald Reagan. Does he have a beef with President Bush? We'll look at his controversial comments later.
And in Vegas, a deal like no other. Just how big is it?
This is DAYBREAK for Wednesday, June 16.
(COMMERCIAL BREAK)
COSTELLO: And welcome back to DAYBREAK.
6:12 Eastern Time.
Viva Las Vegas. The MGM Mirage hits the jackpot. That is part of our business buzz this morning.
Let's head live to New York and Carrie Lee from the NASDAQ market site -- good morning.
CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.
We've been talking about this story for a couple of days, and it's official now. Mandalay Resort Group has approved the -- to be acquired by MGM Mirage for $71 a share. This is a deal worth $4.8 billion. When you include the assumption of debt, it's actually worth $7.9 billion. So they've been going back and forth. Now the boards of both companies have approved it.
Mandalay's shareholders still have to sign off, as do anti-trust regulators. But when these two companies merge, it will become the biggest casino company in the world, very dominant on the Las Vegas Strip. They'll own over half of the 72,000 hotel rooms on the Strip and over one third of the hotels. So a very big deal, Carol. And we'll see what the stocks do today. They were both on the rise yesterday, as were stocks across the board.
Futures today looking pretty strong, as well, following Fed Chief Alan Greenspan's comments regarding inflation, as well as other things. We are watching Oracle today, as well. The stock actually lost a little bit of grounds last night after the close. It looks like some disappointing numbers for business software license sales, and that's a sign that future sales activity were a bit disappointing. But overall looking like we could see some buying today at 9:30 -- Carol, back to you.
COSTELLO: I'm still thinking about that $71 a share. That ain't cheap.
LEE: Yes. It isn't. It was originally $68. Then they bumped it up to $71. Interesting, because Mandalay's stock hasn't actually hit that level. But we'll see what they do today.
COSTELLO: All right, Carrie Lee live from the NASDAQ market site.
Thank you.
Your news, money, weather and sports.
It is 6:13 Eastern Time.
Here's what's all new this morning.
The security chief for Iraq's northern oil company was killed today when gunmen opened fire on his car. The oil security official had just left home for work in Kirkuk.
Iran is threatening to revive parts of its nuclear program. Iran's president is opposed to a pending Atomic Energy Agency resolution that criticizes his country for its lack of cooperation with U.N. inspectors.
In money news, another discount airline is coming to America. Virgin America is the brainchild of Virgin Atlantic Airlines founder Richard Branson. The low cost luxury airline could get off the ground by next year.
In culture, call it a reflex -- Duran Duran's original members are back in the studio. The originals are working on their first album together since 1993. The members first regrouped for a reunion tour last year.
And in sports, Andre Agassi will not follow-up his French Open disaster by playing at Wimbledon. The former champion has pulled out of the grand slam event due to a recurring hip injury -- Chad.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
Now for what they're saying. Every so often, we like to take a look at what's airing on the Arab television networks. This morning, a look at coverage of Saddam Hussein and a U.S.-made commercial apologizing again.
Octavia Nasr, our Arab affairs editor, is here with the pictures and the words -- good morning.
OCTAVIA NASR, CNN CORRESPONDENT: Good morning to you, Carol.
COSTELLO: So let's start with Saddam Hussein and what they're saying about him and maybe a transfer of custody.
NASR: Right. It's a perfect story. The Arab media are dealing with it as a dress rehearsal for actual Iraqi sovereignty after June 30th. Obviously, you saw a conflict here in the information that's being given. The Iraqis saying that they got the message from the Americans that they will be getting Saddam Hussein in two weeks. Then the U.S. is saying no, this is not true, he will be handed over at the right time.
Yesterday, that was the headline on all Arab networks. The story changed so much. First of all, on Al-Arabiya, for example, they ran this video showing where Saddam Hussein will actually be tried. They showed the courtroom. They said in this cage, Saddam Hussein will be sitting when he faces the tribunal.
COSTELLO: I didn't even know they had gotten that far.
NASR: Exactly. But Arab media took it that far, because their sources from the Iraqi side are saying in two weeks we've got Saddam Hussein. He's going to get a fair trial. This is where we are going to try him, which was very interesting to see that switch.
COSTELLO: Well, if they're getting it -- I know. If they're getting it from Iraqi sources, then, then are the Iraqis not telling the Americans everything?
NASR: Well, it's not clear. But Arab observers and Arab media are looking at this as a perfect example of how things are going to be beyond June 30th. Is it a real sovereignty for the Iraqis? This is a perfect example, actually, of how much power the Iraqis have and how much respect there is for their words. You have a president of a transitional government saying I got word that we will be recognizing Saddam Hussein in two weeks and the Iraqis will try him. And then immediately after that, you have a total denial from the U.S. side, saying well, that's not true, we will hand him over when we're ready, when it's the right time.
COSTELLO: Fascinating.
OK, let's talk about this ad that's running on Arab television. It was put together by the United States.
NASR: Right. Religious leaders of the United States, some very prominent ones. They got together. And here you can see the ad. You see a rabbi, a priest, a nun and an imam got together. They're funding this ad themselves. It's a paid ad. It ran on Al Jazeera. This is what we're seeing here. It's all in English.
Basically, you have these peaceful faces telling the Arab world that they do apologize for what happened at Abu Ghraib and this is not something that represents them. But the immediate reaction to this is that well, all this is nice and good, but, you know, nuns and priests and rabbis and imams had nothing to do with this. As someone told me yesterday, he said it would have been nice to see Bush, Rumsfeld, Condi Rice and company in an ad like this. That would have been more effective. I mean, obviously he was joking.
COSTELLO: Well, but they've already apologized, you know? But I understand where you're coming from.
NASR: Right.
COSTELLO: Octavia Nasr, thank you for joining us on DAYBREAK this morning.
NASR: Thank you.
COSTELLO: Always fascinating.
NASR: Thank you.
COSTELLO: Let's hear it for the Pistons. It's time to talk a little sports now. The Motor City stomps on the City of Angels. We'll have highlights for you just ahead.
And later, sunbathing's benefits -- how vitamins in sunscreen may protect you from the sun's rays.
And our DAYBREAK Photo of the Day -- what is it? We'll tell you after the break.
(COMMERCIAL BREAK)
COSTELLO: The Olympic Torch is on the move. It's now moved from Mexico City into the United States. And before we show you L.A., we must show you Rosario. Ninety-three-year-old Rosario Inglesias was one of the torch bearers in Mexico City. She holds the record as the fastest runner over the age of 85. And all that weight lifting and training she did in the last few weeks certainly worked. She ran it with no problem at all.
The torch is now in Los Angeles, where it will begin the day in the hands of Sylvester Stallone. The torch relay works its way through Hollywood before heading on to St. Louis. And then it comes to Atlanta on Friday.
So, the anticipation is certainly building. All this week we're taking a special look at the Olympic Summer Games in August, which most likely will have the tightest security of any Olympics in history. But will it be enough?
Joining us live from Switzerland, Dennis Oswald, a member of the International Olympic Committee, or the IOC.
Good morning.
DENNIS OSWALD, IOC MEMBER: Good morning.
COSTELLO: Seventy thousand security personnel. Athens will literally be in a lockdown during the Games.
Is it enough?
OSWALD: Well, certainly Athens is going to be the most secure place in the world during that time. A hundred percent security cannot be guaranteed, but I can assure you that all efforts humanly possible are done.
COSTELLO: You know, it's a dangerous time for Westerners overseas. Americans are being targeted, kidnapped.
How are those specific issues being dealt with when it comes to American athletes?
OSWALD: Well, all parameters have been taken into consideration. There is a difference in protecting one specific event, which is locally or geographically very, very precise than really protecting the world at any time. We know when the Games will take place, where they will be held, and therefore the effort can be really concentrated in such a way that all these elements are taken into consideration.
COSTELLO: You know, we do have word this morning that some people, you know, some companies are offering tickets to go to the Olympics here in the United States and some employees are turning it down because they're so worried as tourists.
Should they be worried? OSWALD: No, I don't they should be worried. As I just mentioned, Athens will be the most secure place in the world. And a lot of countries are helping Greece in their efforts. The NATO will be controlling the sky and the coast, and seven countries, including the United States, are offering help and they have offered help for the last two years, to make sure that the best possible security is guaranteed.
COSTELLO: Some of the more famous athletes, have you heard they'll have personal bodyguards assisting in security efforts?
OSWALD: Yes. This is not really new. Some athletes and some countries have had security guards in the past, as well. The only question was whether they should wear guns or not, and so far the Greek government has refused that foreign guards would wear guns.
COSTELLO: So no guns for the bodyguards.
A final question. It's costing Greece $1 billion or more to provide security for these Games.
Will there come a point in time when it's just too much?
OSWALD: Well, it's certainly not too much because all efforts should be made and are made. It's unfortunate that we have, and the Greek government has, to spend so much money for security whereas this money could be used in a different way. But that's the result of our current world and therefore this is what it costs to make the Games are secure as possible.
COSTELLO: Mr. Oswald, thank you for joining DAYBREAK this morning.
We appreciate it.
Dennis Oswald, member of the International Olympic Committee.
As we watch the Olympic Torch travel across North America, DAYBREAK is taking a closer look at the upcoming Games in Athens. All week long we'll be going in-depth, talking about the Games, the athletes. The big question -- will Athens be ready in time for the Olympics?
And on Friday, when the torch comes to Atlanta, we'll be bringing you the last half of DAYBREAK from our Olympic home, Centennial Park.
MYERS: And you'll be running it.
COSTELLO: I will be running the torch part of the way.
MYERS: The torch.
COSTELLO: I'm very excited. Paula Zahn will be running it too, from New York.
MYERS: She will. Yes. COSTELLO: Yes.
MYERS: She's done it before. She must have been really good at it the first time.
COSTELLO: Let's talk about Detroit for a second, because what a great -- they stomped on the L.A. Lakers last night.
MYERS: They did.
COSTELLO: Literally stomped on them.
MYERS: They really did. The Lakers just were -- they had an off game, not that they didn't have an off series. But they really had an off game yesterday.
COSTELLO: And Chauncey Billups was named the MVP of the game. And what a terrific guard.
MYERS: Yes.
COSTELLO: He just shut 'em down, didn't he?
MYERS: Yes. They were -- when he was shouting some free throws they were yelling, "MVP! MVP! MVP!"
COSTELLO: And they were right.
MYERS: Yes.
COSTELLO: You know, the funny thing, the game was like so lopsided that the owner of the L.A. Lakers left in the last...
MYERS: Did he really?
COSTELLO: Yes, the last half of the game.
MYERS: That's kind of sad.
COSTELLO: Yes, that's sad.
MYERS: He didn't want to get into the traffic on the way out, I guess.
COSTELLO: Yes. He didn't want to hear all the catcalls.
MYERS: But the last time the Pistons won, they won it away. This time they won it at home, which was great for the fans.
COSTELLO: Yes, that's terrific.
MYERS: Because those fans are kind of like Cubs fans. They've been waiting a long time, even though they won it before.
COSTELLO: Believe me, as a Detroit fan, I know.
MYERS: Yes.
COSTELLO: Oh, look at the celebrations there, too.
MYERS: Speaking of fans.
COSTELLO: Speaking of fans, they're all celebrating out there in Detroit. No violence. Don't worry. This was peaceful.
MYERS: Right.
COSTELLO: They were just chanting fabulous things about their team and they're going to have a parade tomorrow.
MYERS: Great.
COSTELLO: Let's take a look at the DAYBREAK Photo of the Day. Did you guess?
MYERS: I didn't. No. I just, I didn't get it.
COSTELLO: Well, these are children in Texaco, New Mexico. They're being sprayed with water as a car drives through a puddle.
MYERS: Ah!
COSTELLO: How you could have guessed that, I don't know.
MYERS: I know. I thought maybe it was the texture of the ball, of the basketball or something like that, on the trophy. I couldn't tell.
COSTELLO: No. That was that one girl's head.
MYERS: All right.
COSTELLO: Here's what's ahead in the next half hour of DAYBREAK.
The final round of hearings from the 9/11 Commission gets under way in just a few hours. We'll tell you what commissioners are expected to talk about today.
And later, a controversy brewing about President Ronald Reagan's youngest son and what he may have said about President Bush.
(COMMERCIAL BREAK)
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 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A day after they were attacked, Iraq's oil pipelines are hit again.
It is Wednesday, June 16.
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 right now.
In southern Iraq, saboteurs attacked two key oil pipelines for a second day in a row, cutting off that area's crude oil exports. And in the north, gunmen kill a top security official for a state-run oil company.
The final hearings of the 9/11 Commission begin this morning. Among the topics, a look at the plot leading up to the attacks.
In money news, Alan Greenspan says the U.S. economy has legs. He really did say it. It means the economy is recovering, so analysts think any rise in interest rates will probably be gradual.
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 included Hoobastank, the Black Eyed Peas and the Dixie Chicks.
In sports, it was a Motor City manhandling of the Los Angeles Lakers. The Detroit Pistons dominated the Lakers 100-87, to win their first NBA title in 14 years. And they're still partying this morning in Detroit -- Chad.
CHAD MYERS, CNN CORRESPONDENT: Some amateur video out of Denver from last night. A little south there, south of the city. A tornado on the ground. It was a funnel for a while and then it finally did touch down. No report of too much damage, way out there in the middle of -- well, it's not nowhere, but you can see nowhere from there. Scattered rain showers and thunderstorms throughout the Denver area yesterday. Actually, 13 tornadoes reported yesterday across the country. And probably that many today. It could be somewhere around that many, not an outbreak, but certainly some showers and thunderstorms that will be rotating today.
(WEATHER REPORT)
COSTELLO: There will be no negotiating. Those words from Saudi officials this morning. So American Paul Johnson remains in captivity, his neck bandaged and taped.
Is there a next step?
CNN's Bill Prasad joins us live from Washington with the latest -- good morning, Bill.
BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.
We do not negotiate with terrorists. That's the word this morning from the State Department and the Saudi government. It sets up a dangerous stalemate that is now being played out on videotape.
(BEGIN VIDEOTAPE)
PAUL JOHNSON, JR.: I'm an American out of the United States, Marshal Johnson, Jr.
PRASAD (voice-over): He is blindfolded, his shirt torn, his neck bandaged. The captive says he is 49-year-old Paul Johnson. He was kidnapped Saturday while in Saudi Arabia working for Lockheed Martin. The heavily edited videotape was released on an Islamic militant Web site.
A masked gunman speaks on the tape. He says he is Abdel Aziz al- Muqrin, the military leader of al Qaeda in Saudi Arabia. He demands the release of prisoners being held in Saudi custody and the withdrawal of all Westerners from the Arabian Peninsula. He gave a 72 hour deadline. If it is not met, he says Johnson will be executed.
Johnson's family has begged for his release.
PAUL JOHNSON III, SON OF KIDNAPPED AMERICAN: We are extremely distraught by this unforeseen situation and continue to pray for the safe and speedy return of my father.
PRASAD: In Iraq, saboteurs attacked a key oil pipeline. Gunmen also fatally shot the security chief for Iraq's northern oil company. Insurgents continue to target those who are part of the new Iraqi government.
DAN SENOR, COALITION SPOKESMAN: This is a government that seems prepared for the fact that they will be tested post-June 30th.
(END VIDEOTAPE)
PRASAD: Officials say U.S. resolve is now being tested on two fronts -- by insurgents in Iraq and by kidnappers in Saudi Arabia -- Carol, back to you.
COSTELLO: Bill Prasad live in D.C. this morning.
Thank you. The commission investigating the September 11 attacks gets its final round of hearings. They'll be under way later this morning. The panel focusing on the plot leading up to the attacks. One surprising revelation this week -- 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, CNN 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 mean it's actually quite ballsy of them.
(END VIDEO CLIP)
COSTELLO: Tomorrow is the final day of testimony. The panel's final report due out by the end of next month.
The government fund set up to compensate 9/11 victims' families has handed out nearly $7 billion. The deadline to file a claim expired at midnight. The fund processed death claims for more than 99 percent of eligible families. The average award tops $2 million. The fund also compensated more than 4,000 people injured in the attacks.
Another attack on an oil pipeline in Iraq. It happened this morning and it's caused quite a bit of damage. Coupled with two other attacks in Basra and Kirkuk, it means all Iraqi crude oil exports from the Gulf are now cut off, at least for a time.
Live to Baghdad and our chief international correspondent, Christiane Amanpour -- hello, Christiane.
CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Yes.
Carol, there have been yet more acts of sabotage on the Iraqi key infrastructure, and that is its oil industry. According to a spokesman for the Coalition Provisional Authority, that is the occupation forces, this, the headquarters in the south, in Basra, all oil exports through the two main terminals in the Persian Gulf have been halted. Apparently the main pipeline along the Faw Peninsula was badly damaged by sabotage earlier Tuesday. And a second pipeline has been shut down as a precautionary measure until the engineers can repair the fractures on that piping.
This apparently, according to the Iraqi officials, could take some seven to 10 days to repair. And in the meantime, it could cost Iraq about a billion dollars in revenue, which they can ill afford to spare. The oil industry is meant to be the lifeblood of this country, not just to finance reconstruction, but just to get the whole economy up and running. And there have been a number of acts of sabotage and attack on this infrastructure.
Even today in the north, in the northern oil fields, there has been an attack on a pipeline near the Kirkuk area, and there have been several attacks in that area over the last several days, with burning pipelines and a sort of disruption in any kind of export from the northern area.
Compounded to that attack on the actual oil pipeline was the assassination today, early this morning, of Mr. Talabani, Ghazi Talabani, who is the chief security official for the northern oil company. He was killed up there in the north earlier today. So that is having also a devastating blow up there.
Now, to the west of where we are, in the infamous Sunni Triangle, near Ramadi, there has been an explosion, which crippled a couple of cars. U.S. soldiers immediately rushed to the area and sealed it off. The latest reports we're getting from U.S. officials here in Baghdad is that five Iraqis were wounded. We are still trying to get more information on exactly the number of casualties. Earlier we had reported that there may have been some killed. We still don't have that fully confirmed, but we'll get back to you with the full details. But so far we know that five Iraqis have been wounded in that attack -- Carol.
COSTELLO: Christiane Amanpour live from Baghdad this morning.
Thank you.
In news across America this Wednesday, there is a growing division among Baptists. At its annual conference, the Southern Baptist Convention voted to withdraw from the global Baptist organization it founded nearly a century ago. Among the complaints is that the world alliance is allowing women to become preachers and that they are promoting anti-American thinking.
We're learning a lot more about how much Michael Jackson paid to settle the 1993 child molestation suit against him. Court TV says he paid more than $20 million. The alleged victim from 1993 may be called to testify in Jackson's upcoming molestation trial. CNN did attempt to get a comment from Jackson's spokesperson, but our calls went unanswered.
A moderate earthquake shook the fish about 40 miles off the coast of San Diego. The quake caused only minor damage, but it did force the evacuation of Sea World in San Diego. A smaller, but still strong aftershock, hit just two hours later.
Apologies to the Arab world. A closer look at the ads that begin running on Arab TV today and what their impact might be.
Plus, the youngest son of President Ronald Reagan. Does he have a beef with President Bush? We'll look at his controversial comments later.
And in Vegas, a deal like no other. Just how big is it?
This is DAYBREAK for Wednesday, June 16.
(COMMERCIAL BREAK)
COSTELLO: And welcome back to DAYBREAK.
6:12 Eastern Time.
Viva Las Vegas. The MGM Mirage hits the jackpot. That is part of our business buzz this morning.
Let's head live to New York and Carrie Lee from the NASDAQ market site -- good morning.
CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.
We've been talking about this story for a couple of days, and it's official now. Mandalay Resort Group has approved the -- to be acquired by MGM Mirage for $71 a share. This is a deal worth $4.8 billion. When you include the assumption of debt, it's actually worth $7.9 billion. So they've been going back and forth. Now the boards of both companies have approved it.
Mandalay's shareholders still have to sign off, as do anti-trust regulators. But when these two companies merge, it will become the biggest casino company in the world, very dominant on the Las Vegas Strip. They'll own over half of the 72,000 hotel rooms on the Strip and over one third of the hotels. So a very big deal, Carol. And we'll see what the stocks do today. They were both on the rise yesterday, as were stocks across the board.
Futures today looking pretty strong, as well, following Fed Chief Alan Greenspan's comments regarding inflation, as well as other things. We are watching Oracle today, as well. The stock actually lost a little bit of grounds last night after the close. It looks like some disappointing numbers for business software license sales, and that's a sign that future sales activity were a bit disappointing. But overall looking like we could see some buying today at 9:30 -- Carol, back to you.
COSTELLO: I'm still thinking about that $71 a share. That ain't cheap.
LEE: Yes. It isn't. It was originally $68. Then they bumped it up to $71. Interesting, because Mandalay's stock hasn't actually hit that level. But we'll see what they do today.
COSTELLO: All right, Carrie Lee live from the NASDAQ market site.
Thank you.
Your news, money, weather and sports.
It is 6:13 Eastern Time.
Here's what's all new this morning.
The security chief for Iraq's northern oil company was killed today when gunmen opened fire on his car. The oil security official had just left home for work in Kirkuk.
Iran is threatening to revive parts of its nuclear program. Iran's president is opposed to a pending Atomic Energy Agency resolution that criticizes his country for its lack of cooperation with U.N. inspectors.
In money news, another discount airline is coming to America. Virgin America is the brainchild of Virgin Atlantic Airlines founder Richard Branson. The low cost luxury airline could get off the ground by next year.
In culture, call it a reflex -- Duran Duran's original members are back in the studio. The originals are working on their first album together since 1993. The members first regrouped for a reunion tour last year.
And in sports, Andre Agassi will not follow-up his French Open disaster by playing at Wimbledon. The former champion has pulled out of the grand slam event due to a recurring hip injury -- Chad.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
Now for what they're saying. Every so often, we like to take a look at what's airing on the Arab television networks. This morning, a look at coverage of Saddam Hussein and a U.S.-made commercial apologizing again.
Octavia Nasr, our Arab affairs editor, is here with the pictures and the words -- good morning.
OCTAVIA NASR, CNN CORRESPONDENT: Good morning to you, Carol.
COSTELLO: So let's start with Saddam Hussein and what they're saying about him and maybe a transfer of custody.
NASR: Right. It's a perfect story. The Arab media are dealing with it as a dress rehearsal for actual Iraqi sovereignty after June 30th. Obviously, you saw a conflict here in the information that's being given. The Iraqis saying that they got the message from the Americans that they will be getting Saddam Hussein in two weeks. Then the U.S. is saying no, this is not true, he will be handed over at the right time.
Yesterday, that was the headline on all Arab networks. The story changed so much. First of all, on Al-Arabiya, for example, they ran this video showing where Saddam Hussein will actually be tried. They showed the courtroom. They said in this cage, Saddam Hussein will be sitting when he faces the tribunal.
COSTELLO: I didn't even know they had gotten that far.
NASR: Exactly. But Arab media took it that far, because their sources from the Iraqi side are saying in two weeks we've got Saddam Hussein. He's going to get a fair trial. This is where we are going to try him, which was very interesting to see that switch.
COSTELLO: Well, if they're getting it -- I know. If they're getting it from Iraqi sources, then, then are the Iraqis not telling the Americans everything?
NASR: Well, it's not clear. But Arab observers and Arab media are looking at this as a perfect example of how things are going to be beyond June 30th. Is it a real sovereignty for the Iraqis? This is a perfect example, actually, of how much power the Iraqis have and how much respect there is for their words. You have a president of a transitional government saying I got word that we will be recognizing Saddam Hussein in two weeks and the Iraqis will try him. And then immediately after that, you have a total denial from the U.S. side, saying well, that's not true, we will hand him over when we're ready, when it's the right time.
COSTELLO: Fascinating.
OK, let's talk about this ad that's running on Arab television. It was put together by the United States.
NASR: Right. Religious leaders of the United States, some very prominent ones. They got together. And here you can see the ad. You see a rabbi, a priest, a nun and an imam got together. They're funding this ad themselves. It's a paid ad. It ran on Al Jazeera. This is what we're seeing here. It's all in English.
Basically, you have these peaceful faces telling the Arab world that they do apologize for what happened at Abu Ghraib and this is not something that represents them. But the immediate reaction to this is that well, all this is nice and good, but, you know, nuns and priests and rabbis and imams had nothing to do with this. As someone told me yesterday, he said it would have been nice to see Bush, Rumsfeld, Condi Rice and company in an ad like this. That would have been more effective. I mean, obviously he was joking.
COSTELLO: Well, but they've already apologized, you know? But I understand where you're coming from.
NASR: Right.
COSTELLO: Octavia Nasr, thank you for joining us on DAYBREAK this morning.
NASR: Thank you.
COSTELLO: Always fascinating.
NASR: Thank you.
COSTELLO: Let's hear it for the Pistons. It's time to talk a little sports now. The Motor City stomps on the City of Angels. We'll have highlights for you just ahead.
And later, sunbathing's benefits -- how vitamins in sunscreen may protect you from the sun's rays.
And our DAYBREAK Photo of the Day -- what is it? We'll tell you after the break.
(COMMERCIAL BREAK)
COSTELLO: The Olympic Torch is on the move. It's now moved from Mexico City into the United States. And before we show you L.A., we must show you Rosario. Ninety-three-year-old Rosario Inglesias was one of the torch bearers in Mexico City. She holds the record as the fastest runner over the age of 85. And all that weight lifting and training she did in the last few weeks certainly worked. She ran it with no problem at all.
The torch is now in Los Angeles, where it will begin the day in the hands of Sylvester Stallone. The torch relay works its way through Hollywood before heading on to St. Louis. And then it comes to Atlanta on Friday.
So, the anticipation is certainly building. All this week we're taking a special look at the Olympic Summer Games in August, which most likely will have the tightest security of any Olympics in history. But will it be enough?
Joining us live from Switzerland, Dennis Oswald, a member of the International Olympic Committee, or the IOC.
Good morning.
DENNIS OSWALD, IOC MEMBER: Good morning.
COSTELLO: Seventy thousand security personnel. Athens will literally be in a lockdown during the Games.
Is it enough?
OSWALD: Well, certainly Athens is going to be the most secure place in the world during that time. A hundred percent security cannot be guaranteed, but I can assure you that all efforts humanly possible are done.
COSTELLO: You know, it's a dangerous time for Westerners overseas. Americans are being targeted, kidnapped.
How are those specific issues being dealt with when it comes to American athletes?
OSWALD: Well, all parameters have been taken into consideration. There is a difference in protecting one specific event, which is locally or geographically very, very precise than really protecting the world at any time. We know when the Games will take place, where they will be held, and therefore the effort can be really concentrated in such a way that all these elements are taken into consideration.
COSTELLO: You know, we do have word this morning that some people, you know, some companies are offering tickets to go to the Olympics here in the United States and some employees are turning it down because they're so worried as tourists.
Should they be worried? OSWALD: No, I don't they should be worried. As I just mentioned, Athens will be the most secure place in the world. And a lot of countries are helping Greece in their efforts. The NATO will be controlling the sky and the coast, and seven countries, including the United States, are offering help and they have offered help for the last two years, to make sure that the best possible security is guaranteed.
COSTELLO: Some of the more famous athletes, have you heard they'll have personal bodyguards assisting in security efforts?
OSWALD: Yes. This is not really new. Some athletes and some countries have had security guards in the past, as well. The only question was whether they should wear guns or not, and so far the Greek government has refused that foreign guards would wear guns.
COSTELLO: So no guns for the bodyguards.
A final question. It's costing Greece $1 billion or more to provide security for these Games.
Will there come a point in time when it's just too much?
OSWALD: Well, it's certainly not too much because all efforts should be made and are made. It's unfortunate that we have, and the Greek government has, to spend so much money for security whereas this money could be used in a different way. But that's the result of our current world and therefore this is what it costs to make the Games are secure as possible.
COSTELLO: Mr. Oswald, thank you for joining DAYBREAK this morning.
We appreciate it.
Dennis Oswald, member of the International Olympic Committee.
As we watch the Olympic Torch travel across North America, DAYBREAK is taking a closer look at the upcoming Games in Athens. All week long we'll be going in-depth, talking about the Games, the athletes. The big question -- will Athens be ready in time for the Olympics?
And on Friday, when the torch comes to Atlanta, we'll be bringing you the last half of DAYBREAK from our Olympic home, Centennial Park.
MYERS: And you'll be running it.
COSTELLO: I will be running the torch part of the way.
MYERS: The torch.
COSTELLO: I'm very excited. Paula Zahn will be running it too, from New York.
MYERS: She will. Yes. COSTELLO: Yes.
MYERS: She's done it before. She must have been really good at it the first time.
COSTELLO: Let's talk about Detroit for a second, because what a great -- they stomped on the L.A. Lakers last night.
MYERS: They did.
COSTELLO: Literally stomped on them.
MYERS: They really did. The Lakers just were -- they had an off game, not that they didn't have an off series. But they really had an off game yesterday.
COSTELLO: And Chauncey Billups was named the MVP of the game. And what a terrific guard.
MYERS: Yes.
COSTELLO: He just shut 'em down, didn't he?
MYERS: Yes. They were -- when he was shouting some free throws they were yelling, "MVP! MVP! MVP!"
COSTELLO: And they were right.
MYERS: Yes.
COSTELLO: You know, the funny thing, the game was like so lopsided that the owner of the L.A. Lakers left in the last...
MYERS: Did he really?
COSTELLO: Yes, the last half of the game.
MYERS: That's kind of sad.
COSTELLO: Yes, that's sad.
MYERS: He didn't want to get into the traffic on the way out, I guess.
COSTELLO: Yes. He didn't want to hear all the catcalls.
MYERS: But the last time the Pistons won, they won it away. This time they won it at home, which was great for the fans.
COSTELLO: Yes, that's terrific.
MYERS: Because those fans are kind of like Cubs fans. They've been waiting a long time, even though they won it before.
COSTELLO: Believe me, as a Detroit fan, I know.
MYERS: Yes.
COSTELLO: Oh, look at the celebrations there, too.
MYERS: Speaking of fans.
COSTELLO: Speaking of fans, they're all celebrating out there in Detroit. No violence. Don't worry. This was peaceful.
MYERS: Right.
COSTELLO: They were just chanting fabulous things about their team and they're going to have a parade tomorrow.
MYERS: Great.
COSTELLO: Let's take a look at the DAYBREAK Photo of the Day. Did you guess?
MYERS: I didn't. No. I just, I didn't get it.
COSTELLO: Well, these are children in Texaco, New Mexico. They're being sprayed with water as a car drives through a puddle.
MYERS: Ah!
COSTELLO: How you could have guessed that, I don't know.
MYERS: I know. I thought maybe it was the texture of the ball, of the basketball or something like that, on the trophy. I couldn't tell.
COSTELLO: No. That was that one girl's head.
MYERS: All right.
COSTELLO: Here's what's ahead in the next half hour of DAYBREAK.
The final round of hearings from the 9/11 Commission gets under way in just a few hours. We'll tell you what commissioners are expected to talk about today.
And later, a controversy brewing about President Ronald Reagan's youngest son and what he may have said about President Bush.
(COMMERCIAL BREAK)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
