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American Morning

9/11 Investigation Final Hearings; Interview With Dan Senor; Interview With Steve Coll

Aired June 16, 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.


SOLEDAD O'BRIEN, CNN ANCHOR: An anguished family waits as precious time ticks away to save an American held hostage in Saudi Arabia.
Iraqi oil production and payoff this morning after a string of pipeline attacks and the assassination of another top official.

And it was hard to get any sleep in Detroit last night. The Pistons are the giant killers of the NBA and the champs on this AMERICAN MORNING.

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

BILL HEMMER, CNN ANCHOR: Good morning again, everybody. Nine o'clock here in New York. Thanks for being with us today.

There is more violence to talk about in Iraq already. And a new poll shows Iraqis are starting to lose confidence in whether the U.S. troops there are doing anything to make the situation safer. Coalition spokesperson Dan Senor our guest, live in Baghdad, with the administration's take on this in a moment.

O'BRIEN: Also this morning, testimony in the Scott Peterson trial resumes today. Jurors heard two very different points of view coming across in the cross-examination of the first police officer on the scene. We're going to check in with a reporter who was in the court to find out about that. Also, find out about some unusual behavior on the part of one juror.

HEMMER: Yes. Said to be juror number five. We'll get to that in a moment.

Sanjay's back this hour. A new treatment for women trying to deal with sexual dysfunction. Could testosterone be the solution for them? Sanjay has a look in a moment here.

O'BRIEN: And Jack Cafferty is with us.

Good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

Ten years ago, you'll recall a kid came forward and said Michael Jackson had molested him. Jackson allegedly paid the kid off to make the case go away. Well, now we find out, courtesy of Court TV, that, in fact, he did pay the kid off to the tune of something in the neighborhood of $25 million.

Now Michael Jackson is facing a whole new set of allegations that he has sexually molested a child, and we're just curious what this information about the $25 million payoff might have to do with this upcoming trial on child molesting charges. Our e-mail address is am@cnn.com. And we're reading everything that comes in this morning.

HEMMER: That we are. Curious indeed. Thank you, Jack.

CAFFERTY: Yes.

HEMMER: This morning, in fact at this hour, the 9/11 Commission, investigating the attacks of two and a half years ago, started its final round of public hearings. The focus, the plot leading up to those attacks. All this week, there's been at least one surprising revelation. More today possibly. David Ensor is live in D.C.

David, good morning.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Bill, later in the morning we're going to hear some fascinating new detail about exactly how the plotters went about attacking the United States on 9/11. But in the first session, we're going to hear the history. And there is a lead there, too.

We are now able to report that the commission has found evidence. It calls -- it calls it strong but indirect evidence that Osama bin Laden and the al Qaeda organization did play a role in the 1996 attack on Khobar Towers. Now, this was an attack that has been until now attributed to Hezbollah, the Shiite organization. In fact, a Saudi Hezbollah. And it was thought to have Iranian backing. Officials are saying that that still may be the case, but they do have what they call strong but indirect evidence that Osama bin Laden's organization, al Qaeda, may also have played a role in that tragic bombing of American servicemen in Saudi Arabia in 1996.

Now, we're also going to hear this morning a lot of detail about the buildup. A lot of people think that Osama bin Laden's fortune, his $300 million from his very wealthy family, may have contributed to the terrorism.

This report says that is simply not true. He actually only got $24 million of that inheritance. They say that the money that was used to attack the United States was entirely raised through fund- raising from wealthy Arabs and Muslims around the world.

And finally, the report this morning will tell us that they have no credible evidence, none, that Iraq played any kind of role in the 9/11 attacks.

Now, as I say, as the day progresses, we're going to be able to report a lot more detail about the specifics of the plotters here in the United States. How did they communicate with each other? What were some of the mistakes they made? How did it work out the way it did? But unfortunately, that kind of detail will have to emerge in the coming hours -- Bill. HEMMER: David, hang with me a second here. We'll show our viewers the hearings have started there. The chairman, Governor Kean, now at the microphone. We'll keep a close eye on this on the inside, as you stand outside that building.

Back to this 1996 Khobar Towers incident, what's the significance then, David, if there is a focus and a tie to al Qaeda at that point, eight years ago?

ENSOR: Well, it's -- it's evidence of al Qaeda attacking and killing hundreds of Americans much earlier than we realized they may have been capable of doing that. Now, again, they may have been doing this in collaboration with Iranian-inspired or led agents in Hezbollah.

Clearly, there was Hezbollah direct involvement in the attacks. But this all tells us that al Qaeda has been cooperating with other terrorist groups. Many terrorist experts believe Hezbollah is the most capable and perhaps even the most dangerous terrorist organization on Earth.

Now we hear that al Qaeda, the one that we've had the biggest problems with in recent years, may have collaborated with them on a major attack that killed hundreds of Americans. That's a very worrisome development, but it's also very, very interesting -- Bill.

HEMMER: Interesting and possibly significant as well, as you point out. David, thanks for that. We'll watch the hearings again quite closely. They're under way now then in Washington, D.C. -- Soledad.

O'BRIEN: More than half of Iraqis believe they would be safer without U.S. troops. The Coalition Provisional Authority last month commissioned a poll that measured Iraqi discontent. Fifty-five percent of Iraqis polled say they'd feel safer if American troops left right away. But only 41 percent said they should leave immediately. Coalition spokesman Dan Senor joins us this morning from Baghdad.

Nice to see you, Mr. Senor. Thanks for being with us. What do you make of those numbers...

DAN SENOR, COALITION SPOKESMAN: Good to be with you, Soledad.

O'BRIEN: Thank you very much. That 55 percent figure, give me your read on that.

SENOR: Well, let's first focus on the good news in the poll. The good news in this poll and all the others is that an overwhelming majority of Iraqis believe that they want a democracy here. They want minority rights protections. They are against creating a theocracy here.

These are unprecedented numbers for this part of the world. So that's positive in terms of what we've come here to do and what will be done here post June 30th. That said, what some of these other numbers show, including the one you referenced, is that Iraqis don't like to be occupied. We've said that for some time. Being occupied is not a nice thing. Being an occupier is not a nice thing either.

We don't like doing this. We want to give the Iraqi people sovereignty. They are ready to take things over. And the good news is they'll be in a position to do so on June 30.

O'BRIEN: A Foreign Service worker working out of Paul Bremer's office said this: "This is a pretty grim" -- that's a quote -- "poll for the coalition." Do you think that's a fair assessment? He doesn't really see it as much good news as you seem to.

SENOR: Well, I think what he was specifically referring to is the numbers on the occupation. Iraqis don't like to be occupied. And as I said, it's understandable. Iraqis don't like to be occupied. Nobody likes to be occupied.

Soledad, the comparison I use is to Germany and Japan after World War II. The German people and the Japanese people almost accepted the occupation because they felt like they were defeated people by the war. That's not the case in Iraq. The Iraqi people don't feel defeated by the war. They believe their regime was defeated.

They hated their regime. They hated their regime as much as we did. So they don't believe that following a war of liberation they should be occupied.

They're right. We want to end this occupation quickly. So do they. And the numbers reflect that sentiment.

O'BRIEN: The poll has questions about prisoner abuse as well. Let me read you some of these numbers. Seventy-one percent of Iraqis say they were surprised by those humiliating photos out of Abu Ghraib. Fifty-four percent of Iraqis say they believe that all Americans act like those guards.

How damaging has this been obviously for the image of America? And how do you overcome that?

SENOR: I believe if you look at the majority of all the polls, they still indicate what Prime Minister Allawi and the President Sheikh Ghazi al-Yawar have articulated in recent days. The majority of Iraqis are grateful for the liberation, they're grateful for the American-led effort that ended the rape rooms and the torture chambers and the gas attacks in this country. But they want the occupation to end.

These images that you're referring to obviously do not sit well with Iraqis. They don't sit well with Americans either. And Iraqis and Americans want to move past them. And we will. I think that the general view going forward will reflect where most Iraqis are before these recent incidents, which is they're grateful for the liberation, glad to be free, but they don't want to be occupied. O'BRIEN: The next question in the poll, 63 percent of Iraqis believe conditions will improve after June 30, 62 percent believe it very likely that Iraqi forces will maintain security without U.S. forces. Do you agree with these?

SENOR: Well, I think that we have a very serious security-minded government here in Iraq. Prime Minister Allawi has said some -- had some very tough words about Zarqawi, al Qaeda activities in Iraq, and the overall security situation. He wants to take the lead.

He has indicated that he will need the support of the multinational forces here to defeat the terror threat because the Iraqi security forces in the short term aren't ready yet to handle that. But -- but the poll does reflect the mood among Iraqis that having Iraqis in a more prominent role in the security situation here will -- will take the fight to the enemy in a much more -- as far as intelligence is concerned, in a much more effective way. We think that's -- that's a good thing.

O'BRIEN: The poll shows that a large number, though, believe the conditions are going to improve after June 30. What if they don't? Many people, I believe you included, have speculated that actually the violence, the security issues could be much worse. If they don't improve, what happens then?

SENOR: Well, I don't want to speculate on what may or may not happen. Generally speaking, we think if the trend continues, Iraqis will continue to be tested on the security front, the coalition in its winding down days and the interim government in its startup days.

And it's important for the Iraqi leadership to communicate that this fight is not Iraqi on Iraqi. This fight tends to be a group of people who want to turn the clock back on Iraq to a Saddam-type era, or a fight being imposed on the Iraqi people by foreign fighters, international terrorists.

And so long as the prime minister continues to communicate things, which is easier for an Iraqi leader to do than for us to do -- it's one thing for the Americans to say you're fighting a war against international terrorists who want to reek havoc in your country. But it's another thing when you have an Iraqi leader, an Iraqi face, Iraqi political personalities across the country making this point. And I think it will resonate in a much more powerful way than anybody else doing it, particularly a foreign occupation force.

O'BRIEN: Coalition spokesman Dan Senor joining us this morning. Dan, thanks, as always. Nice to see you.

SENOR: Good to be here.

O'BRIEN: Well, as we've been reporting, terrorists have threatened to kill American hostage Paul Johnson. Johnson was seen in a Web video yesterday. A masked terrorist in that same video announced that Johnson could be killed by Friday if al Qaeda prisoners were not released. Secretary of State Colin Powell has said that this kidnapping is part of a new terrorist tactic aimed at destabilizing the Saudi government.

"Washington Post" managing editor Steve Coll has written extensively on al Qaeda and Osama bin Laden in his latest book, which is called "Ghost Wars." And Steve joins us this morning from Washington.

Nice to see you, as always. Thanks for being with us.

STEVE COLL, AUTHOR, "GHOST WARS": Good morning, Soledad.

O'BRIEN: First, let's talk a little bit about this group that apparently has kidnapped Paul Johnson. They identify -- the leader identifies himself as Abdul Aziz al-Muqrin. And he says he is the military leader of al Qaeda in Saudi Arabia. Have you heard of him? Have you heard of this group?

COLL: Yes. He's a wanted fugitive in Saudi Arabia. He's claimed credit for some previous attacks this year. And he describes himself as the leader of an organization he calls the Fallujah Brigade. His exact affiliation with al Qaeda isn't clear, but he claims, as you say, regional leadership of the -- of the network.

O'BRIEN: Do some of those demands, release the prisoners, get all of the westerners out of Saudi Arabia, are those consistent with al Qaeda's demands as well?

COLL: In a sense. They've been trying to rattle the regime, the Saudi royal family's relationship with the United States, and to try to drive Americans and Europeans out of the kingdom in order to weaken the royal family's grip on its economy and on its oil fields. And so these events, the murders and the kidnappings that they've been carrying out, seem designed mainly to frighten westerners out of Saudi Arabia.

O'BRIEN: So it's -- the big picture, then, in the long range, is to really attack the Saudi royal family. What do you expect is going to happen at the end of 72 hours to Paul Johnson?

COLL: I wouldn't hazard a guess about that. But this group has proved itself to be quite vicious and hasn't hesitated to act violently and viciously over the last three or four attacks that they've carried out. So I would certainly regard their threats as very serious.

O'BRIEN: A spokesman for the Saudi Crown Prince Abdullah says that the tape shows "the cruel and inhumane face of the enemy." Do you think that there is a risk that this kind of tactic could backfire? That the group will lose the support of the Saudi people?

COLL: I think that's possible. We don't know a lot about Saudi public opinion. We know that broadly, Saudi public opinion supports the general views of Osama bin Laden, but we don't really know how much they are willing to tolerate this kind of violence in their midst, how much they really support the goal of driving all foreigners out of the kingdom. And I wonder if highly publicized acts of brutal violence of this kind might eventually separate the terrorists from their supporters in the middle classes and lower middle classes in Saudi Arabia. That's certainly a possibility.

O'BRIEN: What are the implications if they are able to drive Westerners out of the kingdom?

COLL: Well, in the short time -- short term, it would be very disruptive for the Saudi government. They rely on western expertise in a number of sectors, including the oil industry. They could almost certainly replace a lot of that expertise with non-European specialists.

But the broader question is the stability of the Saudi government and its ability to suppress this insurgency or these groups that are claiming to -- the ambition to mount an insurgency. And they have to demonstrate that they can control this violence and bring these groups into prisons or into trial and really sort of slow their momentum. That may take them at least a couple of years to fully demonstrate. But right now they're a little bit back on their heels.

O'BRIEN: Steve Coll is the managing editor at "The Washington Post," also the author of "Ghost Wars."

Nice to see you again. Thanks for being with us.

COLL: Glad to be with you, Soledad.

O'BRIEN: Thank you -- Bill.

HEMMER: About 14 minutes past the hour now. Former Democratic presidential candidate Wesley Clark says he has no desire to be Senator John Kerry Kerry's running mate. Senator Kerry, the presumptive Democratic nominee for the White House. Clark says Senator Kerry's choice for vice president is a well-guarded secret.

(BEGIN VIDEO CLIP)

WESLEY CLARK (D), FMR. PRESIDENTIAL CANDIDATE: John Kerry has a process. It's totally confidential. I'm not going to say anything about it other than to say what I have said in the past, that I haven't had any interest in this job.

I'm in the private sector. I'm going back and resuming my career in investment banking and technology and development of small companies. And I'm really having a great time out there.

(END VIDEO CLIP)

HEMMER: Meanwhile, Senator Kerry not announcing his list of running mate prospects. Plenty of speculation out there, though. Every day, in fact. Said to be holding closed-door meetings on that subject at this point.

Five-time Tour De France winner Lance Armstrong taking on the allegations that he used banned substances. The cyclist says he will sue the authors of a new book that makes the allegations, as well as two publications that ran excerpts from the same book. Armstrong -- Armstrong, rather, spoke about why he's taking the action now.

(BEGIN VIDEO CLIP)

LANCE ARMSTRONG, TOUR DE FRANCE WINNER: I heard it in 1999. I heard it in 2001. Again in 2003.

It happens all the time. And every time we've chose to just sit back and let it pass. But we sort of reached a point where we really can't tolerate it anymore, and we're sick and tired of these allegations. And we're going to do everything we can to fight them. They're absolutely untrue. We filed action.

(END VIDEO CLIP)

HEMMER: And now in 2004, less than two weeks away, Armstrong will attempt to become the first cyclist to win that race for the sixth time. We wish him well.

Fifteen past. Check of the other news now. Here's Heidi Collins.

Good morning.

HEIDI COLLINS, CNN ANCHOR: Good morning, Bill. Good morning, everybody.

We do begin in Iraq, where an Iraqi oil company official has been killed. Police say Ghazi al-Talabani was gunned down outside his home in Kirkuk. His driver was wounded.

The assassination taking place as a key pipeline in the Gulf was attacked for a second straight day, stopping the export of oil through Iraq's two offshore terminals. Officials say it may take a week for pipeline repairs to be finished.

The final public hearing of the 9/11 Commission under way right now in Washington. Officials from the FBI and the CIA testifying. The plot leading up to the September 11th attacks expected to be a major focus of today's hearing. One of the findings being released today, that there is no credible evidence that Iraq and al Qaeda cooperated on attacks against the United States.

President Bush in Florida today, visiting the headquarters of U.S. Central Command. The president will deliver a speech at MacDill Air Force Base. It will be broadcast live to troops in Iraq and Afghanistan. A White House spokesperson said the president wants to personally thank troops for their efforts.

A staggering number of Americans are lacking the benefits of health insurance. According to a new study by a private health care group, nearly 82 million people were without insurance at some point over the past two years. The study focused on Americans younger than 65. And in Texas, they're going ape over the reopening of a zoo exhibit there. The gorillas are back at the Dallas Zoo after being closed off from the public for nearly three months. The outdoor gorilla exhibit was shut down after a gorilla escaped and injured three people.

Yikes. So they are back in business there. And eating lots of bananas, as we saw.

HEMMER: That they are. Thank you, Heidi.

COLLINS: Yes.

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

Hello.

CAFFERTY: Good morning.

"Court TV" reporting yesterday that Michael Jackson paid something in the neighborhood of $25 million back in 1993 to settle a civil suit brought against him by a boy who accused Jackson of molestation. Jackson maintained the settlement did not represent an admission of wrongdoing.

CNN tried to reach Jackson's people. They have not returned our call as yet. The question we're fiddling with this morning is, how will the new revelations about Michael Jackson and the $25 million payoff affect his upcoming trial on charges of child molestation?

Clay in Spring City, Pennsylvania: "Jackson's absolution or damnation is now in the hands of only two children among the thousands he has been in contact with. And both children reportedly have screwed up families. I wish I knew the facts instead of the spin. I hope the jury will know the difference."

Loretta in Bizmarck, North Dakota: "Does anyone really care? Most of us have more important things to think about than the Jackson case."

Ken in Pennsylvania: "To me, the Michael Jackson case just another instance of what money can do for a person in the American justice system. If this was a case against the average unknown American citizen, he'd be behind bars by now and the key would have been thrown away."

And Brian in Missouri writes: "Since Mark Geragos is no longer Michael Jackson's attorney, can I now besmirch Michael Jackson?"

Remember Geragos cautioning the press against besmirching Mr. Jackson.

HEMMER: Yes. I wonder if there's speculation now that this case could be settled if it was settled 11 years ago?

CAFFERTY: I don't think so. I think there's something about the criminal complaint having been filed and the indictment handed up. They changed the law...

O'BRIEN: Right, they changed the law in California.

CAFFERTY: ... that you can -- that you can no longer pay off a complainant to make them go away. That was a result -- the law change was a result of this 1993 case.

HEMMER: Yes. When this case first broke months ago, what the family was saying, it's not about cash, it's not about money, you can forget about that, we're taking this one to court. We shall see, Jack.

Check of the weather. Here's Chad Myers at the CNN Center. What are you watching, Chad? Good morning.

(WEATHER REPORT)

O'BRIEN: Thank you, Chad.

O'BRIEN: Still to come this morning, they're in shock in Los Angeles. But in Detroit it's a much different story. We're going to get to the Pistons surprise just ahead.

HEMMER: Also in a moment, why Britney Spears is getting off the stage, for now anyway. Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: They are already saying this could be one of the greatest upsets in NBA playoff history. The Pistons defeated the Lakers last night to win their first title since going back to 1990, 14 years ago -- 100-87 the final last night in Detroit, 4-1 the final in that series.

Many people think Detroit could have swept this thing four games to zip. Nonetheless, they're going nuts in Detroit. And Larry Smith is there now for reaction this morning.

(BEGIN VIDEOTAPE)

LARRY SMITH, CNN CORRESPONDENT (voice-over): They personified their cities perfectly in the NBA finals. Los Angeles, glitz and star power, lost out to the hard work of a relatively anonymous group of Detroit Pistons.

UNIDENTIFIED MALE: We didn't worry about what people wrote in the papers or what people were saying on TV or what they was even saying in Vegas. We said to ourselves, you know, anything is possible if you play together.

SHAQUILLE O'NEAL, BASKETBALL PLAYER: They played consistently hard. They played consistently good defense. And they just flat out beat us to everything.

SMITH: Lost in the hoopla surrounding Lakers' coach Phil Jackson, going for a record 10th NBA title in these finals, was Larry Brown getting his first in his 22nd year as an NBA coach, the longest wait in league history.

LARRY BROWN, PISTONS COACH: Since this is toward the end of it for me, and the way we did it against such a quality coach and a quality team, it's a pretty incredible feeling.

UNIDENTIFIED MALE: Larry, he deserves it. He deserves all the accolades. He deserves everything, you know, because I think he's been looked over the last few years. But, you know, he finally done it. He finally got over that hump.

SMITH (on camera): While the Pistons ride off to enjoy the spoils of a champion, the Lakers now ponder an uncertain future. Jackson's contract is expired, and three of the starting five can become free agents, including Kobe Bryant.

Larry Smith, CNN, Auburn Hills, Michigan.

(END VIDEOTAPE)

HEMMER: Larry, thanks for that. They'll have a parade tomorrow, we're told. But last night, this was the scene.

Thousands pouring into the streets there in Detroit. Police were ready for some violence, but only minor problems reported. Good news from Detroit last night. And celebrate away. Well deserved last night in the Motor City -- Soledad.

O'BRIEN: Former President Bill Clinton back in the news. And, of course, that means he's back on the joke list for David Letterman.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, TALK SHOW HOST: Donald Rumsfeld was talking today. He says the White House sees no wiggle room. The White House sees no wiggle room in the definition of torture.

You know, I don't think the White House has had a wiggle room since Clinton left. Has it, Paul?

(LAUGHTER)

LETTERMAN: President Clinton's official portrait was unveiled yesterday at the White House. Did you see that in the papers? Well, yes. Well, don't get too excited because already there's trouble. Clinton's portrait was hitting on the Dolly Madison portrait.

(LAUGHTER)

(END VIDEO CLIP)

O'BRIEN: That's funny.

HEMMER: Not bad.

O'BRIEN: That's cute. Still to come this morning on AMERICAN MORNING, our "90-Second Pop" panel takes a look at the brewing battle between MTV's famous newlyweds and a couple of filthy think rich road trippers. That's ahead as we continue right after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

O'BRIEN: And it's just exactly half past the hour on this AMERICAN MORNING.

If you don't like those lines for airport security, maybe you can do something about it. A new program is being unveiled to speed certain passengers through checkpoints. The communications director for the TSA, Mark Hatfield, is going to tell us how and where passengers can participate in the new program.

HEMMER: Also in the next 30 minutes, "90-Second Pop" comes your way, looking at the big blonde showdown: Jessica and Paris Hilton -- Jessica Simpson. They both have new reality shows set to debut for a second season for, what, both of them? Is that right?

O'BRIEN: Mm hmm.

HEMMER: Yes? Their own special versions of reality.

(CROSSTALK)

O'BRIEN: (UNINTELLIGIBLE) each other.

HEMMER: The panel looks at that in a moment here.

O'BRIEN: Yes. That's true. It's like reality television.

HEMMER: Stay tuned for more on that.

In the meantime, though, the number of air travelers this summer expected to rise. But even as the travel season heats up, the security process in some areas may actually get easier. Maybe. The good news, there may soon be a way for some passengers that go through special express lines at the airport.

Mark Hatfield is with the TSA, Transportation Security Administration. He talked earlier today, explaining to us what the registered traveler program is all about.

(BEGIN VIDEOTAPE)

MARK HATFIELD, TSA COMMUNICATIONS DIRECTOR: We've got a really exciting pilot project that we're kicking off later this month, starting in Minneapolis, where frequent flyers will be invited to voluntarily join the registered traveler program. And in doing so, they will provide information that will allow us to do a background check, make sure they don't pose a threat to aviation. And then depending on the particular airport where the pilot is located, we'll have a designated or even a dedicated line at some point that they can get through a little bit faster, with a few less hassles, and really significantly reduce the possibility that they're going to have to be taken over for secondary screening.

HEMMER: So it's kind of like a free pass, then. If you pass the background pass -- check, rather, you'll have this -- this card or whatever will help identify you to the people doing security at the airport, correct?

HATFIELD: It's an easy pass, it's not a free pass. Everybody still goes through screening, and that's an important point. We're not relaxing any of the standards.

We will still have primary screening for registered travelers, but it will significantly reduce the added time that secondary screening takes and reduce the chance that they'll be taken over to the coral for secondary screening. It's very important.

It also has this biometric identification component to it which we're really excited about, because that holds a lot of promise for aviation security. It has further applications for identifying airport workers, crews, law enforcement officers. So this is really a platform that we're building that can be expanded both for the registered travelers and beyond that in aviation security applications elsewhere.

HEMMER: Mark, why do you think this program is going to work? Many of the initiatives employed in the past three years have actually slowed down the time it takes to get processed at the airport.

HATFIELD: Well, we're confident in this program because, first of all, we're taking a very deliberate approach to it. We're building the foundation first, we're making sure that we've got the standard procedures in place that will allow our screeners to process registered travelers in a faster fashion.

It's basically -- you know, we're looking for a needle in a haystack. And this is a process where we're making the haystack smaller. We're separating a group of people that we have vetted, that we have cleared. We're still going to screen them, but we're able to put them through a little bit faster. And quite frankly, if you look at the numbers that we're getting, even in this very busy travel season, our screeners are doing a terrific job at keeping those lines moving.

HEMMER: Mark, your critics say you have been dragging your feet on this, it should have been initiated two and a half, maybe three years ago. How do you respond to that?

HATFIELD: Well, we certainly had a priority list of accomplishments to -- to get to on the aviation security front. I think that we've done a great job at addressing those steps in the most important order.

This is certainly an important addition. And it's still a very timely addition to the whole aviation matrix. So we're using the $5 million that Congress has allocated for this, and we're rolling it out.

Passengers are very excited. The airlines are excited about it. We've got a lot of support. And again, I think it's going to give us a platform not only to build on for the registered travelers, but to then extend some of these technologies and some of these applications into the rest of the aviation mix.

HEMMER: Are you convinced this is fool proof? Can you keep a terrorist away from this program?

HATFIELD: Well, there's no single layer of security that's fool proof. And we live with that knowledge, which is why we look at the entire compilation of aviation security measures as a redundant layer after layer system which will allow us to mitigate risk at each one of those layers and know that, while none of them are fool proof, we've got a system that together brings us into a safe environment.

(END VIDEOTAPE)

HEMMER: Again, Mark Hatfield from the TSA earlier today. Thousands expected to participate in the pilot program. Five different airports will take part. Expected to happen in about three weeks from now -- Soledad.

O'BRIEN: Just as Viagra has been a wonder drug for men, a new testosterone patch could help millions of women who are suffering from sexual dysfunction. Dr. Sanjay Gupta is at the CNN Center with details on this for us.

Good morning, Sanjay.

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

Yes, about 43 percent of women suffer from some sort of female sexual dysfunction. That's a pretty startling number.

There are no FDA approved drugs to try and treat this as of right now. That's why there's so much excitement about potentially a new drug out there. It's called Intrinsa. Now, this was specifically studied in women who have something known as HSDD, which is Hypoactive Active Sexual Desire Disorder, HSDD.

So that's not all women, not all of the 43 percent, but a small subset. These are women who have had their ovaries removed. '

And what they did, this is actually a testosterone patch. A sort of testosterone patch that's actually given, and they study these women over a period of time. Interesting results here.

What they found was that 28 percent of them, of all these women, average age 49, had 28 percent of them had more satisfying sex. Thirty-one percent had higher sexual desire as measured in a questionnaire.

Again, this particular study just done in post-surgical women, women who had their ovaries removed, and subsequently had their source of testosterone removed as well. They believe that replacing that testosterone can actually achieve these desired benefits -- Soledad.

O'BRIEN: But this isn't the first time that that testosterone patch is being used, I guess what you call off-label to treat sexual dysfunction, is it? What's new about this?

GUPTA: Well, what's new is that all the testosterone patches that are out there are typically for men. And the dosing is much different, critically different, in fact, between men and women.

Not surprisingly. Men, the patch is typically about five milligrams. These patches more in the order of 300 micrograms. So a much smaller amount.

The concern, Soledad, is that this is sort of a fine balance of giving, replacing this hormone. If you give too much of the testosterone, you could have these untoward side effects which can be very problematic for anybody: acne, facial hair, abnormal liver function, lowering of the good cholesterol, as well. So really getting that adequate amount of testosterone which may be used for all women eventually with female sexual dysfunction is -- is key -- Soledad.

O'BRIEN: Sanjay Gupta for us. Sanjay, thanks.

GUPTA: Thank you.

HEMMER: In a moment here, "90-Second Pop." Studio execs are reportedly in a tizzy over a new movie with Nicole Kidman all because of a scene involving a bathtub. We'll explain that in a moment.

O'BRIEN: Also ahead this morning, some folks would call it a slap in the face. Why three years after its power crisis, the state of California might actually owe Enron some money. We'll explain as AMERICAN MORNING continues right after this.

(COMMERCIAL BREAK)

O'BRIEN: It's getting hot in here, so take off all your clothes. Ooh, that was a little steamy, wasn't it?

It is time for another chapter of the series that has never been copied -- that has been copied. At least people have tried, but they've never really tried successfully, have they? We like to call -- let's just brag on ourselves for a moment.

We like to call it "90-Second Pop." And here's our culture club this morning. B.J. Sigesmund is a staff editor for US Weekly. Sarah Bernard is a contributing editor for "New York Magazine." And humorist Andy Borowitz is the star of theborowitzreport.com. They're all joining us on the couch this morning.

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK MAGAZINE": How many other people are on the Borwowitz Report?

ANDY BOROWITZ, HUMORIST: So far -- so far, just me.

O'BRIEN: You know what? You could still be the star then. See?

Let's get into the story about Nicole Kidman. Apparently -- and this is sort of like early word about this movie she's doing called "Birth," where she's bathing naked with a 10-year-old kid in the tub. What?

BERNARD: Good (ph) idea.

BOROWITZ: Well, I guess -- I guess it's a film -- they just finished filming it, and the 10-year-old kid is actually supposed to be the reincarnation of her late husband. Of course, we're just seeing her taking a bath with a 10-year-old kid.

O'BRIEN: And so is everybody else. But -- studio executives included, who are like, what?

BOROWITZ: I think the most disturbing thing is that it's ruining a perfectly good scene of Nicole Kidman naked taking a bath.

O'BRIEN: Take the kid out.

BERNARD: Oh.

BOROWITZ: It's just -- I'm sorry.

(CROSSTALK)

BERNARD: I think this whole thing is just a plot to divert attention from the "Stepford Wives" and how bad it is. And this is just going to focus everybody on her next movie. Don't you think that's right?

BOROWITZ: Wow.

B.J. SIGESMUND, US WEEKLY: Well, I actually -- the thing -- this is a lot of hoo-ha over a movie that actually wrapped in April of 2003. Sorry to tell you, Andy. It's been sitting on the shelf for a year. They don't have a distribution date.

O'BRIEN: Do you agree it's sort of a plot to get...

SIGESMUND: Well, I mean, it just seems like a lot of hype around this film that no one had been talking bout and no one had even expected to come out.

BERNARD: But how did New Line not know this?

O'BRIEN: But they needed -- they needed people to come out and start condemning it and tell people not to see it so that it's a big hit.

BERNARD: And then everyone will see it.

BOROWITZ: B.J., I just read that the 10-year-old kid is now 30. It's been on the shelf that long.

SIGESMUND: You know, the kiss also is not -- there's a lot of dispute over the kiss. Some say it's passionate.

O'BRIEN: Wait, what kiss? She kisses the kid?

SIGESMUND: Other people -- there's a kiss between Nicole and the kid in the tub. And some people say it's a passionate kiss. Other people say it's more of a kiss between a mother and her son.

O'BRIEN: Ew. Either way...

BOROWITZ: Or a film that will never be released.

O'BRIEN: Moving right on -- all right, let's talk about two -- two shows that are coming back for new seasons. We've got "Newlyweds." Of course, they're not newlyweds anymore. They need to rename it "Old Married People."

BERNARD: "Old Married Couples."

O'BRIEN: They're getting that way. And then we've got "The Simple Life Two," which is Paris and Nicole back again. Where are they -- where are they discovering...

BERNARD: This is hilarious. Paris and Nicole are now on the road. They are driving an air stream trailer from Miami Beach all the way to Beverly Hills. And it's a little bit of the same. You know, they don't have credit cards, they don't have any cash. So they have to rely on the kindness of strangers to get gas, to get food.

And they put them in different kind of stunt situations. They work in a prison, they work at a sausage factory. I kid you not. But it's getting a little bit old.

I mean, it is kind of the same thing over and over. And you have the feeling that now they are simply using the show to promote their movie career, their albums, their perfume.

SIGESMUND: Right. (UNINTELLIGIBLE).

BOROWITZ: But I think they were supposed to -- everybody is supposed to have 15 minutes of fame. I calculated the minutes of fame that Jessica Simpson and Paris Hilton have had. It's 90 million.

BERNARD: It's too long.

O'BRIEN: All right. You guys, we're out of time, but thanks, as always. Appreciate it, B.J., and Sarah and Andy. Nice to see you. Thanks.

Bill, let's go back to you.

HEMMER: All right, Soledad. Thanks for that.

In a moment, if you have tickets to Britney Spears this summer, I hope you made other plans. We'll explain that in a moment after this.

(COMMERCIAL BREAK)

HEMMER: Teresa Heinz Kerry, wife of Democratic presidential candidate John Kerry, used to be a Republican, but now she tells CBS News she switched parties recently because she was angry with the way Republicans treated former Senator Max Cleland, a Vietnam war hero in his re-election campaign in the state of Georgia.

(BEGIN VIDEO CLIP)

TERESA HEINZ KERRY, JOHN KERRY'S WIFE: I was very upset at the way the party dealt with Max Cleland in Georgia, and Jimmy Carter and others by having his picture next to bin Laden's and Saddam Hussein and calling him unpatriotic. I thought it was disgusting.

UNIDENTIFIED MALE: A man who lost three limbs in Vietnam.

KERRY: Three limbs. You know, all I could think of, does the Republican Party need a fourth limb to make a person a hero? And this coming from people who have not served. I was really offended by that.

(END VIDEO CLIP)

HEMMER: That interview with CBS News again. Ms. Heinz Kerry known for being outspoken. Her husband, Senator Kerry, interviewing many prospects to be his running mate, we're told. Not revealing who that will be, obviously. More when we get it.

Thirteen minutes before the hour. Heidi Collins now with a look at other news -- Heidi.

COLLINS: Thanks, Bill.

The final public hearing of the 9/11 Commission under way right now in Washington. We'll take you there for some live pictures. As you see, a member of the FBI speaking.

Officials from the FBI and CIA, as I said, are testifying. One of the findings being released today by the commission, there is no credible evidence that Iraq and al Qaeda cooperated on attacks against the United States. The plot leading up to the September 11th attacks clearly a major focus of the hearing today.

The flow of oil disrupted in Iraq after a second straight day of attacks on a key pipeline. The oil pipeline was heavily damaged by an explosion and fires. An official says it may take at least a week for repairs.

Meanwhile, an Iraqi oil company official has been killed in Kirkuk. Police say Ghazi al-Talabani was gunned down outside his home. His driver was wounded.

Saudi officials working to verify a new videotape of kidnapped American Paul Johnson. The videotape was found on an Islamic Web site yesterday. The captors urged Saudi authorities to release al Qaeda prisoners within 72 hours or risk Johnson's life. The contractor was reported missing over the weekend. CNN will have an exclusive interview with his son at 11:00 a.m. Eastern.

To Colorado now. Kobe Bryant's lawyers are seeking to reduce the sexual assault charge against him. The defense request was made public yesterday. If granted, the reduction could cut the possible minimum sentence from four years down to two years if Bryant is convicted. Another round of pretrial hearings expected next week.

And pop star Britney Spears gets knocked out of the zone. The singer is calling off concert performances because of a knee injury she suffered during the shooting of a music video. The summer portion of her tour was due to kick off next week in Connecticut. Certainly some fans bummed out about that.

Soledad, back over to you.

O'BRIEN: All right. Heidi, thanks.

Jack, what are you going to do?

CAFFERTY: I don't know. I've got these tickets. I was going to go up there to see her. I don't know. I'm going to have to make other plans.

Court TV is reporting this morning that Michael Jackson paid $20 million-plus back in 1993 to settle a civil suit brought by a boy who accused Jackson of molesting him. Jackson says that that settlement, paying him over $20 million, did not represent an admission of any wrongdoing.

CNN tried to contact Jackson's spokespeople yesterday. So far, we have not received a response. The question is, how will these revelations about paying that kid off affect his upcoming trial on yet more charges of child molestation?

Kari in Laurel, Maryland, writes: "The $20 or $25 million seems a lot to us everyday working people, but that amount of money is nothing to Michael Jackson. I bet he spent more than $25 million on plastic surgery for his face."

Robert in Toronto, Ontario, writes this -- we got a letter from a guy in Japan earlier saying there's a lot of serious stuff in the world and that I was kind of a moron for doing this Michael Jackson story. So Robert writes this: he says, "Is there no room in our lives for conversation about anything but the serious troubles in the world? Let's go by Dave's house" -- that's the guy who wrote from Japan -- "sometime and listen around the dinner table and see what he's talking about. Maybe the weather or a new movie or some reality show. Life would be quite dull and depressing if all we talked about was the misery that sometimes invades all our lives."

And Rex in Toronto writes this: "Michael Jackson? Tell me you have some vacation time coming to you, Jack. You're beginning to lose it. How's your diet? Are you sleeping OK? I'm worried about you, Jack."

I'm doing all right, Mr. Rex. Thank you.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: "I'm all right" Jack.

HEMMER: OK. That's right.

California struggled through an energy crisis. Now is insult being added to injury there? A check of the markets, too, with Andy Serwer.

Good morning to you.

SERWER: Good morning to you.

HEMMER: Let's start with the markets?

SERWER: Let's do that. Needle not moving too much this morning. Oil weighing heavily on the markets. Dow down about -- slipping a little bit more here. We're down about 20 points on the Dow.

What's happening? Well, Callaway Golf getting clubbed, getting sliced this morning. Stock is down about $3 to $11. Stiff competition for titanium drivers, lack of demand in Japan for this company. This with the U.S. Open beginning tomorrow at Shinnecock Hills Golf Club...

HEMMER: Yes.

SERWER: ... South Hampton, New York.

The MGM-Mandalay merger is going through. Biggest casino company in the United States. One-third of the strip is now going to be owned by one company. Luxor, Mandalay Bay, Excalibur, Circus Circus are all owned by one company.

Let's talk about this situation in California, shall we? Insult to injury, Bill said, and he's right. Get this: FERC, Federal Energy Regulatory Commission, saying that the state of California has to reimburse Enron. What? What? I'll explain.

So you remember how Enron and those other power companies sold inflated energy to the state? The state then resold that energy to other utilities, including Enron itself.

FERC says now it has to reimburse Enron. It doesn't have the regulatory powers to get the company to reimburse the state? You get -- FERC, I think you should just back out of this thing. I mean, the government, surprise, surprise, creating more problems than solving the problem, and...

HEMMER: How much money are we talking about?

SERWER: Two hundred and seventy million dollars, as opposed to the billions of dollars that Enron overcharged the state to begin with. This is going to take so many years to sort out. And this is not the way to do it.

HEMMER: That's because it's so complicated.

SERWER: Very complicated.

HEMMER: All right. Tank you, Andy.

SERWER: You're welcome.

HEMMER: A final check of the weather. Here's Chad Myers yet again.

Hey, Chad. What should we look out for today?

(WEATHER REPORT)

HEMMER: Thank you, Chad. We'll take that forecast over the weekend, too, for the golf tournament.

Break here. Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: Next hour on CNN, a closer look at the latest tactics for Iraq's insurgents attacking the precious oil system there in Iraq. A live report coming up with Daryn Kagan. She has that next hour on "CNN LIVE TODAY."

Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: You know, Daryn Kagan grew up in Los Angeles. And I know she was hurting last night.

But, Daryn, just so you know, Andy Serwer is good on his word.

SERWER: Yes. Here you go, Jack.

DARYN KAGAN, CNN ANCHOR: Got my dollar.

SERWER: There's my lunch money.

O'BRIEN: She's got her dollar, too.

KAGAN: Got my dollar. Got my dollar for Jack.

CAFFERTY: Put it in the mail, will you?

KAGAN: Yes, I will. But Jack, you know, I hear, looking at the sports bars now, the NBA is actually considering invalidating the results of last night's game.


Aired June 16, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: An anguished family waits as precious time ticks away to save an American held hostage in Saudi Arabia.
Iraqi oil production and payoff this morning after a string of pipeline attacks and the assassination of another top official.

And it was hard to get any sleep in Detroit last night. The Pistons are the giant killers of the NBA and the champs on this AMERICAN MORNING.

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

BILL HEMMER, CNN ANCHOR: Good morning again, everybody. Nine o'clock here in New York. Thanks for being with us today.

There is more violence to talk about in Iraq already. And a new poll shows Iraqis are starting to lose confidence in whether the U.S. troops there are doing anything to make the situation safer. Coalition spokesperson Dan Senor our guest, live in Baghdad, with the administration's take on this in a moment.

O'BRIEN: Also this morning, testimony in the Scott Peterson trial resumes today. Jurors heard two very different points of view coming across in the cross-examination of the first police officer on the scene. We're going to check in with a reporter who was in the court to find out about that. Also, find out about some unusual behavior on the part of one juror.

HEMMER: Yes. Said to be juror number five. We'll get to that in a moment.

Sanjay's back this hour. A new treatment for women trying to deal with sexual dysfunction. Could testosterone be the solution for them? Sanjay has a look in a moment here.

O'BRIEN: And Jack Cafferty is with us.

Good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

Ten years ago, you'll recall a kid came forward and said Michael Jackson had molested him. Jackson allegedly paid the kid off to make the case go away. Well, now we find out, courtesy of Court TV, that, in fact, he did pay the kid off to the tune of something in the neighborhood of $25 million.

Now Michael Jackson is facing a whole new set of allegations that he has sexually molested a child, and we're just curious what this information about the $25 million payoff might have to do with this upcoming trial on child molesting charges. Our e-mail address is am@cnn.com. And we're reading everything that comes in this morning.

HEMMER: That we are. Curious indeed. Thank you, Jack.

CAFFERTY: Yes.

HEMMER: This morning, in fact at this hour, the 9/11 Commission, investigating the attacks of two and a half years ago, started its final round of public hearings. The focus, the plot leading up to those attacks. All this week, there's been at least one surprising revelation. More today possibly. David Ensor is live in D.C.

David, good morning.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Bill, later in the morning we're going to hear some fascinating new detail about exactly how the plotters went about attacking the United States on 9/11. But in the first session, we're going to hear the history. And there is a lead there, too.

We are now able to report that the commission has found evidence. It calls -- it calls it strong but indirect evidence that Osama bin Laden and the al Qaeda organization did play a role in the 1996 attack on Khobar Towers. Now, this was an attack that has been until now attributed to Hezbollah, the Shiite organization. In fact, a Saudi Hezbollah. And it was thought to have Iranian backing. Officials are saying that that still may be the case, but they do have what they call strong but indirect evidence that Osama bin Laden's organization, al Qaeda, may also have played a role in that tragic bombing of American servicemen in Saudi Arabia in 1996.

Now, we're also going to hear this morning a lot of detail about the buildup. A lot of people think that Osama bin Laden's fortune, his $300 million from his very wealthy family, may have contributed to the terrorism.

This report says that is simply not true. He actually only got $24 million of that inheritance. They say that the money that was used to attack the United States was entirely raised through fund- raising from wealthy Arabs and Muslims around the world.

And finally, the report this morning will tell us that they have no credible evidence, none, that Iraq played any kind of role in the 9/11 attacks.

Now, as I say, as the day progresses, we're going to be able to report a lot more detail about the specifics of the plotters here in the United States. How did they communicate with each other? What were some of the mistakes they made? How did it work out the way it did? But unfortunately, that kind of detail will have to emerge in the coming hours -- Bill. HEMMER: David, hang with me a second here. We'll show our viewers the hearings have started there. The chairman, Governor Kean, now at the microphone. We'll keep a close eye on this on the inside, as you stand outside that building.

Back to this 1996 Khobar Towers incident, what's the significance then, David, if there is a focus and a tie to al Qaeda at that point, eight years ago?

ENSOR: Well, it's -- it's evidence of al Qaeda attacking and killing hundreds of Americans much earlier than we realized they may have been capable of doing that. Now, again, they may have been doing this in collaboration with Iranian-inspired or led agents in Hezbollah.

Clearly, there was Hezbollah direct involvement in the attacks. But this all tells us that al Qaeda has been cooperating with other terrorist groups. Many terrorist experts believe Hezbollah is the most capable and perhaps even the most dangerous terrorist organization on Earth.

Now we hear that al Qaeda, the one that we've had the biggest problems with in recent years, may have collaborated with them on a major attack that killed hundreds of Americans. That's a very worrisome development, but it's also very, very interesting -- Bill.

HEMMER: Interesting and possibly significant as well, as you point out. David, thanks for that. We'll watch the hearings again quite closely. They're under way now then in Washington, D.C. -- Soledad.

O'BRIEN: More than half of Iraqis believe they would be safer without U.S. troops. The Coalition Provisional Authority last month commissioned a poll that measured Iraqi discontent. Fifty-five percent of Iraqis polled say they'd feel safer if American troops left right away. But only 41 percent said they should leave immediately. Coalition spokesman Dan Senor joins us this morning from Baghdad.

Nice to see you, Mr. Senor. Thanks for being with us. What do you make of those numbers...

DAN SENOR, COALITION SPOKESMAN: Good to be with you, Soledad.

O'BRIEN: Thank you very much. That 55 percent figure, give me your read on that.

SENOR: Well, let's first focus on the good news in the poll. The good news in this poll and all the others is that an overwhelming majority of Iraqis believe that they want a democracy here. They want minority rights protections. They are against creating a theocracy here.

These are unprecedented numbers for this part of the world. So that's positive in terms of what we've come here to do and what will be done here post June 30th. That said, what some of these other numbers show, including the one you referenced, is that Iraqis don't like to be occupied. We've said that for some time. Being occupied is not a nice thing. Being an occupier is not a nice thing either.

We don't like doing this. We want to give the Iraqi people sovereignty. They are ready to take things over. And the good news is they'll be in a position to do so on June 30.

O'BRIEN: A Foreign Service worker working out of Paul Bremer's office said this: "This is a pretty grim" -- that's a quote -- "poll for the coalition." Do you think that's a fair assessment? He doesn't really see it as much good news as you seem to.

SENOR: Well, I think what he was specifically referring to is the numbers on the occupation. Iraqis don't like to be occupied. And as I said, it's understandable. Iraqis don't like to be occupied. Nobody likes to be occupied.

Soledad, the comparison I use is to Germany and Japan after World War II. The German people and the Japanese people almost accepted the occupation because they felt like they were defeated people by the war. That's not the case in Iraq. The Iraqi people don't feel defeated by the war. They believe their regime was defeated.

They hated their regime. They hated their regime as much as we did. So they don't believe that following a war of liberation they should be occupied.

They're right. We want to end this occupation quickly. So do they. And the numbers reflect that sentiment.

O'BRIEN: The poll has questions about prisoner abuse as well. Let me read you some of these numbers. Seventy-one percent of Iraqis say they were surprised by those humiliating photos out of Abu Ghraib. Fifty-four percent of Iraqis say they believe that all Americans act like those guards.

How damaging has this been obviously for the image of America? And how do you overcome that?

SENOR: I believe if you look at the majority of all the polls, they still indicate what Prime Minister Allawi and the President Sheikh Ghazi al-Yawar have articulated in recent days. The majority of Iraqis are grateful for the liberation, they're grateful for the American-led effort that ended the rape rooms and the torture chambers and the gas attacks in this country. But they want the occupation to end.

These images that you're referring to obviously do not sit well with Iraqis. They don't sit well with Americans either. And Iraqis and Americans want to move past them. And we will. I think that the general view going forward will reflect where most Iraqis are before these recent incidents, which is they're grateful for the liberation, glad to be free, but they don't want to be occupied. O'BRIEN: The next question in the poll, 63 percent of Iraqis believe conditions will improve after June 30, 62 percent believe it very likely that Iraqi forces will maintain security without U.S. forces. Do you agree with these?

SENOR: Well, I think that we have a very serious security-minded government here in Iraq. Prime Minister Allawi has said some -- had some very tough words about Zarqawi, al Qaeda activities in Iraq, and the overall security situation. He wants to take the lead.

He has indicated that he will need the support of the multinational forces here to defeat the terror threat because the Iraqi security forces in the short term aren't ready yet to handle that. But -- but the poll does reflect the mood among Iraqis that having Iraqis in a more prominent role in the security situation here will -- will take the fight to the enemy in a much more -- as far as intelligence is concerned, in a much more effective way. We think that's -- that's a good thing.

O'BRIEN: The poll shows that a large number, though, believe the conditions are going to improve after June 30. What if they don't? Many people, I believe you included, have speculated that actually the violence, the security issues could be much worse. If they don't improve, what happens then?

SENOR: Well, I don't want to speculate on what may or may not happen. Generally speaking, we think if the trend continues, Iraqis will continue to be tested on the security front, the coalition in its winding down days and the interim government in its startup days.

And it's important for the Iraqi leadership to communicate that this fight is not Iraqi on Iraqi. This fight tends to be a group of people who want to turn the clock back on Iraq to a Saddam-type era, or a fight being imposed on the Iraqi people by foreign fighters, international terrorists.

And so long as the prime minister continues to communicate things, which is easier for an Iraqi leader to do than for us to do -- it's one thing for the Americans to say you're fighting a war against international terrorists who want to reek havoc in your country. But it's another thing when you have an Iraqi leader, an Iraqi face, Iraqi political personalities across the country making this point. And I think it will resonate in a much more powerful way than anybody else doing it, particularly a foreign occupation force.

O'BRIEN: Coalition spokesman Dan Senor joining us this morning. Dan, thanks, as always. Nice to see you.

SENOR: Good to be here.

O'BRIEN: Well, as we've been reporting, terrorists have threatened to kill American hostage Paul Johnson. Johnson was seen in a Web video yesterday. A masked terrorist in that same video announced that Johnson could be killed by Friday if al Qaeda prisoners were not released. Secretary of State Colin Powell has said that this kidnapping is part of a new terrorist tactic aimed at destabilizing the Saudi government.

"Washington Post" managing editor Steve Coll has written extensively on al Qaeda and Osama bin Laden in his latest book, which is called "Ghost Wars." And Steve joins us this morning from Washington.

Nice to see you, as always. Thanks for being with us.

STEVE COLL, AUTHOR, "GHOST WARS": Good morning, Soledad.

O'BRIEN: First, let's talk a little bit about this group that apparently has kidnapped Paul Johnson. They identify -- the leader identifies himself as Abdul Aziz al-Muqrin. And he says he is the military leader of al Qaeda in Saudi Arabia. Have you heard of him? Have you heard of this group?

COLL: Yes. He's a wanted fugitive in Saudi Arabia. He's claimed credit for some previous attacks this year. And he describes himself as the leader of an organization he calls the Fallujah Brigade. His exact affiliation with al Qaeda isn't clear, but he claims, as you say, regional leadership of the -- of the network.

O'BRIEN: Do some of those demands, release the prisoners, get all of the westerners out of Saudi Arabia, are those consistent with al Qaeda's demands as well?

COLL: In a sense. They've been trying to rattle the regime, the Saudi royal family's relationship with the United States, and to try to drive Americans and Europeans out of the kingdom in order to weaken the royal family's grip on its economy and on its oil fields. And so these events, the murders and the kidnappings that they've been carrying out, seem designed mainly to frighten westerners out of Saudi Arabia.

O'BRIEN: So it's -- the big picture, then, in the long range, is to really attack the Saudi royal family. What do you expect is going to happen at the end of 72 hours to Paul Johnson?

COLL: I wouldn't hazard a guess about that. But this group has proved itself to be quite vicious and hasn't hesitated to act violently and viciously over the last three or four attacks that they've carried out. So I would certainly regard their threats as very serious.

O'BRIEN: A spokesman for the Saudi Crown Prince Abdullah says that the tape shows "the cruel and inhumane face of the enemy." Do you think that there is a risk that this kind of tactic could backfire? That the group will lose the support of the Saudi people?

COLL: I think that's possible. We don't know a lot about Saudi public opinion. We know that broadly, Saudi public opinion supports the general views of Osama bin Laden, but we don't really know how much they are willing to tolerate this kind of violence in their midst, how much they really support the goal of driving all foreigners out of the kingdom. And I wonder if highly publicized acts of brutal violence of this kind might eventually separate the terrorists from their supporters in the middle classes and lower middle classes in Saudi Arabia. That's certainly a possibility.

O'BRIEN: What are the implications if they are able to drive Westerners out of the kingdom?

COLL: Well, in the short time -- short term, it would be very disruptive for the Saudi government. They rely on western expertise in a number of sectors, including the oil industry. They could almost certainly replace a lot of that expertise with non-European specialists.

But the broader question is the stability of the Saudi government and its ability to suppress this insurgency or these groups that are claiming to -- the ambition to mount an insurgency. And they have to demonstrate that they can control this violence and bring these groups into prisons or into trial and really sort of slow their momentum. That may take them at least a couple of years to fully demonstrate. But right now they're a little bit back on their heels.

O'BRIEN: Steve Coll is the managing editor at "The Washington Post," also the author of "Ghost Wars."

Nice to see you again. Thanks for being with us.

COLL: Glad to be with you, Soledad.

O'BRIEN: Thank you -- Bill.

HEMMER: About 14 minutes past the hour now. Former Democratic presidential candidate Wesley Clark says he has no desire to be Senator John Kerry Kerry's running mate. Senator Kerry, the presumptive Democratic nominee for the White House. Clark says Senator Kerry's choice for vice president is a well-guarded secret.

(BEGIN VIDEO CLIP)

WESLEY CLARK (D), FMR. PRESIDENTIAL CANDIDATE: John Kerry has a process. It's totally confidential. I'm not going to say anything about it other than to say what I have said in the past, that I haven't had any interest in this job.

I'm in the private sector. I'm going back and resuming my career in investment banking and technology and development of small companies. And I'm really having a great time out there.

(END VIDEO CLIP)

HEMMER: Meanwhile, Senator Kerry not announcing his list of running mate prospects. Plenty of speculation out there, though. Every day, in fact. Said to be holding closed-door meetings on that subject at this point.

Five-time Tour De France winner Lance Armstrong taking on the allegations that he used banned substances. The cyclist says he will sue the authors of a new book that makes the allegations, as well as two publications that ran excerpts from the same book. Armstrong -- Armstrong, rather, spoke about why he's taking the action now.

(BEGIN VIDEO CLIP)

LANCE ARMSTRONG, TOUR DE FRANCE WINNER: I heard it in 1999. I heard it in 2001. Again in 2003.

It happens all the time. And every time we've chose to just sit back and let it pass. But we sort of reached a point where we really can't tolerate it anymore, and we're sick and tired of these allegations. And we're going to do everything we can to fight them. They're absolutely untrue. We filed action.

(END VIDEO CLIP)

HEMMER: And now in 2004, less than two weeks away, Armstrong will attempt to become the first cyclist to win that race for the sixth time. We wish him well.

Fifteen past. Check of the other news now. Here's Heidi Collins.

Good morning.

HEIDI COLLINS, CNN ANCHOR: Good morning, Bill. Good morning, everybody.

We do begin in Iraq, where an Iraqi oil company official has been killed. Police say Ghazi al-Talabani was gunned down outside his home in Kirkuk. His driver was wounded.

The assassination taking place as a key pipeline in the Gulf was attacked for a second straight day, stopping the export of oil through Iraq's two offshore terminals. Officials say it may take a week for pipeline repairs to be finished.

The final public hearing of the 9/11 Commission under way right now in Washington. Officials from the FBI and the CIA testifying. The plot leading up to the September 11th attacks expected to be a major focus of today's hearing. One of the findings being released today, that there is no credible evidence that Iraq and al Qaeda cooperated on attacks against the United States.

President Bush in Florida today, visiting the headquarters of U.S. Central Command. The president will deliver a speech at MacDill Air Force Base. It will be broadcast live to troops in Iraq and Afghanistan. A White House spokesperson said the president wants to personally thank troops for their efforts.

A staggering number of Americans are lacking the benefits of health insurance. According to a new study by a private health care group, nearly 82 million people were without insurance at some point over the past two years. The study focused on Americans younger than 65. And in Texas, they're going ape over the reopening of a zoo exhibit there. The gorillas are back at the Dallas Zoo after being closed off from the public for nearly three months. The outdoor gorilla exhibit was shut down after a gorilla escaped and injured three people.

Yikes. So they are back in business there. And eating lots of bananas, as we saw.

HEMMER: That they are. Thank you, Heidi.

COLLINS: Yes.

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

Hello.

CAFFERTY: Good morning.

"Court TV" reporting yesterday that Michael Jackson paid something in the neighborhood of $25 million back in 1993 to settle a civil suit brought against him by a boy who accused Jackson of molestation. Jackson maintained the settlement did not represent an admission of wrongdoing.

CNN tried to reach Jackson's people. They have not returned our call as yet. The question we're fiddling with this morning is, how will the new revelations about Michael Jackson and the $25 million payoff affect his upcoming trial on charges of child molestation?

Clay in Spring City, Pennsylvania: "Jackson's absolution or damnation is now in the hands of only two children among the thousands he has been in contact with. And both children reportedly have screwed up families. I wish I knew the facts instead of the spin. I hope the jury will know the difference."

Loretta in Bizmarck, North Dakota: "Does anyone really care? Most of us have more important things to think about than the Jackson case."

Ken in Pennsylvania: "To me, the Michael Jackson case just another instance of what money can do for a person in the American justice system. If this was a case against the average unknown American citizen, he'd be behind bars by now and the key would have been thrown away."

And Brian in Missouri writes: "Since Mark Geragos is no longer Michael Jackson's attorney, can I now besmirch Michael Jackson?"

Remember Geragos cautioning the press against besmirching Mr. Jackson.

HEMMER: Yes. I wonder if there's speculation now that this case could be settled if it was settled 11 years ago?

CAFFERTY: I don't think so. I think there's something about the criminal complaint having been filed and the indictment handed up. They changed the law...

O'BRIEN: Right, they changed the law in California.

CAFFERTY: ... that you can -- that you can no longer pay off a complainant to make them go away. That was a result -- the law change was a result of this 1993 case.

HEMMER: Yes. When this case first broke months ago, what the family was saying, it's not about cash, it's not about money, you can forget about that, we're taking this one to court. We shall see, Jack.

Check of the weather. Here's Chad Myers at the CNN Center. What are you watching, Chad? Good morning.

(WEATHER REPORT)

O'BRIEN: Thank you, Chad.

O'BRIEN: Still to come this morning, they're in shock in Los Angeles. But in Detroit it's a much different story. We're going to get to the Pistons surprise just ahead.

HEMMER: Also in a moment, why Britney Spears is getting off the stage, for now anyway. Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: They are already saying this could be one of the greatest upsets in NBA playoff history. The Pistons defeated the Lakers last night to win their first title since going back to 1990, 14 years ago -- 100-87 the final last night in Detroit, 4-1 the final in that series.

Many people think Detroit could have swept this thing four games to zip. Nonetheless, they're going nuts in Detroit. And Larry Smith is there now for reaction this morning.

(BEGIN VIDEOTAPE)

LARRY SMITH, CNN CORRESPONDENT (voice-over): They personified their cities perfectly in the NBA finals. Los Angeles, glitz and star power, lost out to the hard work of a relatively anonymous group of Detroit Pistons.

UNIDENTIFIED MALE: We didn't worry about what people wrote in the papers or what people were saying on TV or what they was even saying in Vegas. We said to ourselves, you know, anything is possible if you play together.

SHAQUILLE O'NEAL, BASKETBALL PLAYER: They played consistently hard. They played consistently good defense. And they just flat out beat us to everything.

SMITH: Lost in the hoopla surrounding Lakers' coach Phil Jackson, going for a record 10th NBA title in these finals, was Larry Brown getting his first in his 22nd year as an NBA coach, the longest wait in league history.

LARRY BROWN, PISTONS COACH: Since this is toward the end of it for me, and the way we did it against such a quality coach and a quality team, it's a pretty incredible feeling.

UNIDENTIFIED MALE: Larry, he deserves it. He deserves all the accolades. He deserves everything, you know, because I think he's been looked over the last few years. But, you know, he finally done it. He finally got over that hump.

SMITH (on camera): While the Pistons ride off to enjoy the spoils of a champion, the Lakers now ponder an uncertain future. Jackson's contract is expired, and three of the starting five can become free agents, including Kobe Bryant.

Larry Smith, CNN, Auburn Hills, Michigan.

(END VIDEOTAPE)

HEMMER: Larry, thanks for that. They'll have a parade tomorrow, we're told. But last night, this was the scene.

Thousands pouring into the streets there in Detroit. Police were ready for some violence, but only minor problems reported. Good news from Detroit last night. And celebrate away. Well deserved last night in the Motor City -- Soledad.

O'BRIEN: Former President Bill Clinton back in the news. And, of course, that means he's back on the joke list for David Letterman.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, TALK SHOW HOST: Donald Rumsfeld was talking today. He says the White House sees no wiggle room. The White House sees no wiggle room in the definition of torture.

You know, I don't think the White House has had a wiggle room since Clinton left. Has it, Paul?

(LAUGHTER)

LETTERMAN: President Clinton's official portrait was unveiled yesterday at the White House. Did you see that in the papers? Well, yes. Well, don't get too excited because already there's trouble. Clinton's portrait was hitting on the Dolly Madison portrait.

(LAUGHTER)

(END VIDEO CLIP)

O'BRIEN: That's funny.

HEMMER: Not bad.

O'BRIEN: That's cute. Still to come this morning on AMERICAN MORNING, our "90-Second Pop" panel takes a look at the brewing battle between MTV's famous newlyweds and a couple of filthy think rich road trippers. That's ahead as we continue right after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

O'BRIEN: And it's just exactly half past the hour on this AMERICAN MORNING.

If you don't like those lines for airport security, maybe you can do something about it. A new program is being unveiled to speed certain passengers through checkpoints. The communications director for the TSA, Mark Hatfield, is going to tell us how and where passengers can participate in the new program.

HEMMER: Also in the next 30 minutes, "90-Second Pop" comes your way, looking at the big blonde showdown: Jessica and Paris Hilton -- Jessica Simpson. They both have new reality shows set to debut for a second season for, what, both of them? Is that right?

O'BRIEN: Mm hmm.

HEMMER: Yes? Their own special versions of reality.

(CROSSTALK)

O'BRIEN: (UNINTELLIGIBLE) each other.

HEMMER: The panel looks at that in a moment here.

O'BRIEN: Yes. That's true. It's like reality television.

HEMMER: Stay tuned for more on that.

In the meantime, though, the number of air travelers this summer expected to rise. But even as the travel season heats up, the security process in some areas may actually get easier. Maybe. The good news, there may soon be a way for some passengers that go through special express lines at the airport.

Mark Hatfield is with the TSA, Transportation Security Administration. He talked earlier today, explaining to us what the registered traveler program is all about.

(BEGIN VIDEOTAPE)

MARK HATFIELD, TSA COMMUNICATIONS DIRECTOR: We've got a really exciting pilot project that we're kicking off later this month, starting in Minneapolis, where frequent flyers will be invited to voluntarily join the registered traveler program. And in doing so, they will provide information that will allow us to do a background check, make sure they don't pose a threat to aviation. And then depending on the particular airport where the pilot is located, we'll have a designated or even a dedicated line at some point that they can get through a little bit faster, with a few less hassles, and really significantly reduce the possibility that they're going to have to be taken over for secondary screening.

HEMMER: So it's kind of like a free pass, then. If you pass the background pass -- check, rather, you'll have this -- this card or whatever will help identify you to the people doing security at the airport, correct?

HATFIELD: It's an easy pass, it's not a free pass. Everybody still goes through screening, and that's an important point. We're not relaxing any of the standards.

We will still have primary screening for registered travelers, but it will significantly reduce the added time that secondary screening takes and reduce the chance that they'll be taken over to the coral for secondary screening. It's very important.

It also has this biometric identification component to it which we're really excited about, because that holds a lot of promise for aviation security. It has further applications for identifying airport workers, crews, law enforcement officers. So this is really a platform that we're building that can be expanded both for the registered travelers and beyond that in aviation security applications elsewhere.

HEMMER: Mark, why do you think this program is going to work? Many of the initiatives employed in the past three years have actually slowed down the time it takes to get processed at the airport.

HATFIELD: Well, we're confident in this program because, first of all, we're taking a very deliberate approach to it. We're building the foundation first, we're making sure that we've got the standard procedures in place that will allow our screeners to process registered travelers in a faster fashion.

It's basically -- you know, we're looking for a needle in a haystack. And this is a process where we're making the haystack smaller. We're separating a group of people that we have vetted, that we have cleared. We're still going to screen them, but we're able to put them through a little bit faster. And quite frankly, if you look at the numbers that we're getting, even in this very busy travel season, our screeners are doing a terrific job at keeping those lines moving.

HEMMER: Mark, your critics say you have been dragging your feet on this, it should have been initiated two and a half, maybe three years ago. How do you respond to that?

HATFIELD: Well, we certainly had a priority list of accomplishments to -- to get to on the aviation security front. I think that we've done a great job at addressing those steps in the most important order.

This is certainly an important addition. And it's still a very timely addition to the whole aviation matrix. So we're using the $5 million that Congress has allocated for this, and we're rolling it out.

Passengers are very excited. The airlines are excited about it. We've got a lot of support. And again, I think it's going to give us a platform not only to build on for the registered travelers, but to then extend some of these technologies and some of these applications into the rest of the aviation mix.

HEMMER: Are you convinced this is fool proof? Can you keep a terrorist away from this program?

HATFIELD: Well, there's no single layer of security that's fool proof. And we live with that knowledge, which is why we look at the entire compilation of aviation security measures as a redundant layer after layer system which will allow us to mitigate risk at each one of those layers and know that, while none of them are fool proof, we've got a system that together brings us into a safe environment.

(END VIDEOTAPE)

HEMMER: Again, Mark Hatfield from the TSA earlier today. Thousands expected to participate in the pilot program. Five different airports will take part. Expected to happen in about three weeks from now -- Soledad.

O'BRIEN: Just as Viagra has been a wonder drug for men, a new testosterone patch could help millions of women who are suffering from sexual dysfunction. Dr. Sanjay Gupta is at the CNN Center with details on this for us.

Good morning, Sanjay.

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

Yes, about 43 percent of women suffer from some sort of female sexual dysfunction. That's a pretty startling number.

There are no FDA approved drugs to try and treat this as of right now. That's why there's so much excitement about potentially a new drug out there. It's called Intrinsa. Now, this was specifically studied in women who have something known as HSDD, which is Hypoactive Active Sexual Desire Disorder, HSDD.

So that's not all women, not all of the 43 percent, but a small subset. These are women who have had their ovaries removed. '

And what they did, this is actually a testosterone patch. A sort of testosterone patch that's actually given, and they study these women over a period of time. Interesting results here.

What they found was that 28 percent of them, of all these women, average age 49, had 28 percent of them had more satisfying sex. Thirty-one percent had higher sexual desire as measured in a questionnaire.

Again, this particular study just done in post-surgical women, women who had their ovaries removed, and subsequently had their source of testosterone removed as well. They believe that replacing that testosterone can actually achieve these desired benefits -- Soledad.

O'BRIEN: But this isn't the first time that that testosterone patch is being used, I guess what you call off-label to treat sexual dysfunction, is it? What's new about this?

GUPTA: Well, what's new is that all the testosterone patches that are out there are typically for men. And the dosing is much different, critically different, in fact, between men and women.

Not surprisingly. Men, the patch is typically about five milligrams. These patches more in the order of 300 micrograms. So a much smaller amount.

The concern, Soledad, is that this is sort of a fine balance of giving, replacing this hormone. If you give too much of the testosterone, you could have these untoward side effects which can be very problematic for anybody: acne, facial hair, abnormal liver function, lowering of the good cholesterol, as well. So really getting that adequate amount of testosterone which may be used for all women eventually with female sexual dysfunction is -- is key -- Soledad.

O'BRIEN: Sanjay Gupta for us. Sanjay, thanks.

GUPTA: Thank you.

HEMMER: In a moment here, "90-Second Pop." Studio execs are reportedly in a tizzy over a new movie with Nicole Kidman all because of a scene involving a bathtub. We'll explain that in a moment.

O'BRIEN: Also ahead this morning, some folks would call it a slap in the face. Why three years after its power crisis, the state of California might actually owe Enron some money. We'll explain as AMERICAN MORNING continues right after this.

(COMMERCIAL BREAK)

O'BRIEN: It's getting hot in here, so take off all your clothes. Ooh, that was a little steamy, wasn't it?

It is time for another chapter of the series that has never been copied -- that has been copied. At least people have tried, but they've never really tried successfully, have they? We like to call -- let's just brag on ourselves for a moment.

We like to call it "90-Second Pop." And here's our culture club this morning. B.J. Sigesmund is a staff editor for US Weekly. Sarah Bernard is a contributing editor for "New York Magazine." And humorist Andy Borowitz is the star of theborowitzreport.com. They're all joining us on the couch this morning.

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK MAGAZINE": How many other people are on the Borwowitz Report?

ANDY BOROWITZ, HUMORIST: So far -- so far, just me.

O'BRIEN: You know what? You could still be the star then. See?

Let's get into the story about Nicole Kidman. Apparently -- and this is sort of like early word about this movie she's doing called "Birth," where she's bathing naked with a 10-year-old kid in the tub. What?

BERNARD: Good (ph) idea.

BOROWITZ: Well, I guess -- I guess it's a film -- they just finished filming it, and the 10-year-old kid is actually supposed to be the reincarnation of her late husband. Of course, we're just seeing her taking a bath with a 10-year-old kid.

O'BRIEN: And so is everybody else. But -- studio executives included, who are like, what?

BOROWITZ: I think the most disturbing thing is that it's ruining a perfectly good scene of Nicole Kidman naked taking a bath.

O'BRIEN: Take the kid out.

BERNARD: Oh.

BOROWITZ: It's just -- I'm sorry.

(CROSSTALK)

BERNARD: I think this whole thing is just a plot to divert attention from the "Stepford Wives" and how bad it is. And this is just going to focus everybody on her next movie. Don't you think that's right?

BOROWITZ: Wow.

B.J. SIGESMUND, US WEEKLY: Well, I actually -- the thing -- this is a lot of hoo-ha over a movie that actually wrapped in April of 2003. Sorry to tell you, Andy. It's been sitting on the shelf for a year. They don't have a distribution date.

O'BRIEN: Do you agree it's sort of a plot to get...

SIGESMUND: Well, I mean, it just seems like a lot of hype around this film that no one had been talking bout and no one had even expected to come out.

BERNARD: But how did New Line not know this?

O'BRIEN: But they needed -- they needed people to come out and start condemning it and tell people not to see it so that it's a big hit.

BERNARD: And then everyone will see it.

BOROWITZ: B.J., I just read that the 10-year-old kid is now 30. It's been on the shelf that long.

SIGESMUND: You know, the kiss also is not -- there's a lot of dispute over the kiss. Some say it's passionate.

O'BRIEN: Wait, what kiss? She kisses the kid?

SIGESMUND: Other people -- there's a kiss between Nicole and the kid in the tub. And some people say it's a passionate kiss. Other people say it's more of a kiss between a mother and her son.

O'BRIEN: Ew. Either way...

BOROWITZ: Or a film that will never be released.

O'BRIEN: Moving right on -- all right, let's talk about two -- two shows that are coming back for new seasons. We've got "Newlyweds." Of course, they're not newlyweds anymore. They need to rename it "Old Married People."

BERNARD: "Old Married Couples."

O'BRIEN: They're getting that way. And then we've got "The Simple Life Two," which is Paris and Nicole back again. Where are they -- where are they discovering...

BERNARD: This is hilarious. Paris and Nicole are now on the road. They are driving an air stream trailer from Miami Beach all the way to Beverly Hills. And it's a little bit of the same. You know, they don't have credit cards, they don't have any cash. So they have to rely on the kindness of strangers to get gas, to get food.

And they put them in different kind of stunt situations. They work in a prison, they work at a sausage factory. I kid you not. But it's getting a little bit old.

I mean, it is kind of the same thing over and over. And you have the feeling that now they are simply using the show to promote their movie career, their albums, their perfume.

SIGESMUND: Right. (UNINTELLIGIBLE).

BOROWITZ: But I think they were supposed to -- everybody is supposed to have 15 minutes of fame. I calculated the minutes of fame that Jessica Simpson and Paris Hilton have had. It's 90 million.

BERNARD: It's too long.

O'BRIEN: All right. You guys, we're out of time, but thanks, as always. Appreciate it, B.J., and Sarah and Andy. Nice to see you. Thanks.

Bill, let's go back to you.

HEMMER: All right, Soledad. Thanks for that.

In a moment, if you have tickets to Britney Spears this summer, I hope you made other plans. We'll explain that in a moment after this.

(COMMERCIAL BREAK)

HEMMER: Teresa Heinz Kerry, wife of Democratic presidential candidate John Kerry, used to be a Republican, but now she tells CBS News she switched parties recently because she was angry with the way Republicans treated former Senator Max Cleland, a Vietnam war hero in his re-election campaign in the state of Georgia.

(BEGIN VIDEO CLIP)

TERESA HEINZ KERRY, JOHN KERRY'S WIFE: I was very upset at the way the party dealt with Max Cleland in Georgia, and Jimmy Carter and others by having his picture next to bin Laden's and Saddam Hussein and calling him unpatriotic. I thought it was disgusting.

UNIDENTIFIED MALE: A man who lost three limbs in Vietnam.

KERRY: Three limbs. You know, all I could think of, does the Republican Party need a fourth limb to make a person a hero? And this coming from people who have not served. I was really offended by that.

(END VIDEO CLIP)

HEMMER: That interview with CBS News again. Ms. Heinz Kerry known for being outspoken. Her husband, Senator Kerry, interviewing many prospects to be his running mate, we're told. Not revealing who that will be, obviously. More when we get it.

Thirteen minutes before the hour. Heidi Collins now with a look at other news -- Heidi.

COLLINS: Thanks, Bill.

The final public hearing of the 9/11 Commission under way right now in Washington. We'll take you there for some live pictures. As you see, a member of the FBI speaking.

Officials from the FBI and CIA, as I said, are testifying. One of the findings being released today by the commission, there is no credible evidence that Iraq and al Qaeda cooperated on attacks against the United States. The plot leading up to the September 11th attacks clearly a major focus of the hearing today.

The flow of oil disrupted in Iraq after a second straight day of attacks on a key pipeline. The oil pipeline was heavily damaged by an explosion and fires. An official says it may take at least a week for repairs.

Meanwhile, an Iraqi oil company official has been killed in Kirkuk. Police say Ghazi al-Talabani was gunned down outside his home. His driver was wounded.

Saudi officials working to verify a new videotape of kidnapped American Paul Johnson. The videotape was found on an Islamic Web site yesterday. The captors urged Saudi authorities to release al Qaeda prisoners within 72 hours or risk Johnson's life. The contractor was reported missing over the weekend. CNN will have an exclusive interview with his son at 11:00 a.m. Eastern.

To Colorado now. Kobe Bryant's lawyers are seeking to reduce the sexual assault charge against him. The defense request was made public yesterday. If granted, the reduction could cut the possible minimum sentence from four years down to two years if Bryant is convicted. Another round of pretrial hearings expected next week.

And pop star Britney Spears gets knocked out of the zone. The singer is calling off concert performances because of a knee injury she suffered during the shooting of a music video. The summer portion of her tour was due to kick off next week in Connecticut. Certainly some fans bummed out about that.

Soledad, back over to you.

O'BRIEN: All right. Heidi, thanks.

Jack, what are you going to do?

CAFFERTY: I don't know. I've got these tickets. I was going to go up there to see her. I don't know. I'm going to have to make other plans.

Court TV is reporting this morning that Michael Jackson paid $20 million-plus back in 1993 to settle a civil suit brought by a boy who accused Jackson of molesting him. Jackson says that that settlement, paying him over $20 million, did not represent an admission of any wrongdoing.

CNN tried to contact Jackson's spokespeople yesterday. So far, we have not received a response. The question is, how will these revelations about paying that kid off affect his upcoming trial on yet more charges of child molestation?

Kari in Laurel, Maryland, writes: "The $20 or $25 million seems a lot to us everyday working people, but that amount of money is nothing to Michael Jackson. I bet he spent more than $25 million on plastic surgery for his face."

Robert in Toronto, Ontario, writes this -- we got a letter from a guy in Japan earlier saying there's a lot of serious stuff in the world and that I was kind of a moron for doing this Michael Jackson story. So Robert writes this: he says, "Is there no room in our lives for conversation about anything but the serious troubles in the world? Let's go by Dave's house" -- that's the guy who wrote from Japan -- "sometime and listen around the dinner table and see what he's talking about. Maybe the weather or a new movie or some reality show. Life would be quite dull and depressing if all we talked about was the misery that sometimes invades all our lives."

And Rex in Toronto writes this: "Michael Jackson? Tell me you have some vacation time coming to you, Jack. You're beginning to lose it. How's your diet? Are you sleeping OK? I'm worried about you, Jack."

I'm doing all right, Mr. Rex. Thank you.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: "I'm all right" Jack.

HEMMER: OK. That's right.

California struggled through an energy crisis. Now is insult being added to injury there? A check of the markets, too, with Andy Serwer.

Good morning to you.

SERWER: Good morning to you.

HEMMER: Let's start with the markets?

SERWER: Let's do that. Needle not moving too much this morning. Oil weighing heavily on the markets. Dow down about -- slipping a little bit more here. We're down about 20 points on the Dow.

What's happening? Well, Callaway Golf getting clubbed, getting sliced this morning. Stock is down about $3 to $11. Stiff competition for titanium drivers, lack of demand in Japan for this company. This with the U.S. Open beginning tomorrow at Shinnecock Hills Golf Club...

HEMMER: Yes.

SERWER: ... South Hampton, New York.

The MGM-Mandalay merger is going through. Biggest casino company in the United States. One-third of the strip is now going to be owned by one company. Luxor, Mandalay Bay, Excalibur, Circus Circus are all owned by one company.

Let's talk about this situation in California, shall we? Insult to injury, Bill said, and he's right. Get this: FERC, Federal Energy Regulatory Commission, saying that the state of California has to reimburse Enron. What? What? I'll explain.

So you remember how Enron and those other power companies sold inflated energy to the state? The state then resold that energy to other utilities, including Enron itself.

FERC says now it has to reimburse Enron. It doesn't have the regulatory powers to get the company to reimburse the state? You get -- FERC, I think you should just back out of this thing. I mean, the government, surprise, surprise, creating more problems than solving the problem, and...

HEMMER: How much money are we talking about?

SERWER: Two hundred and seventy million dollars, as opposed to the billions of dollars that Enron overcharged the state to begin with. This is going to take so many years to sort out. And this is not the way to do it.

HEMMER: That's because it's so complicated.

SERWER: Very complicated.

HEMMER: All right. Tank you, Andy.

SERWER: You're welcome.

HEMMER: A final check of the weather. Here's Chad Myers yet again.

Hey, Chad. What should we look out for today?

(WEATHER REPORT)

HEMMER: Thank you, Chad. We'll take that forecast over the weekend, too, for the golf tournament.

Break here. Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: Next hour on CNN, a closer look at the latest tactics for Iraq's insurgents attacking the precious oil system there in Iraq. A live report coming up with Daryn Kagan. She has that next hour on "CNN LIVE TODAY."

Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: You know, Daryn Kagan grew up in Los Angeles. And I know she was hurting last night.

But, Daryn, just so you know, Andy Serwer is good on his word.

SERWER: Yes. Here you go, Jack.

DARYN KAGAN, CNN ANCHOR: Got my dollar.

SERWER: There's my lunch money.

O'BRIEN: She's got her dollar, too.

KAGAN: Got my dollar. Got my dollar for Jack.

CAFFERTY: Put it in the mail, will you?

KAGAN: Yes, I will. But Jack, you know, I hear, looking at the sports bars now, the NBA is actually considering invalidating the results of last night's game.