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CNN Live At Daybreak
Latest on Search for Paul Johnson's Body in Saudi Arabia; Latest Developments in Prisoner Abuse Scandal at Abu Ghraib Prison
Aired June 21, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: In Iraq, the wheels of justice begin to turn in the prisoner abuse scandal.
It is Monday, June 21.
This is DAYBREAK.
And good morning to you.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Those are the latest headlines for you now.
Pretrial hearings under way in Baghdad in the Iraq prisoner abuse scandal. A military judge has agreed to allow a defense attorney to question top U.S. generals.
Authorities in Saudi Arabia are still searching for the body of Paul Johnson. He was beheaded by al Qaeda militants three days ago.
In money news, Wachovia, the nation's fourth largest bank, is said to be in talks to buy Southtrust Corporation. The deal would expand Wachovia's presence in the Southeast.
In culture, "Dodgeball" was tops at the box office. The comedy pulled in $30 million over the weekend. "Dodgeball" did better than the Tom Hanks movie, "The Terminal," which came in a distant second. "Harry Potter" has dropped to third.
In sports, Retief Goosen won his second U.S. Open title with a two shot win over Masters champion Phil Mickelson. Mickelson double bogied the 17th hole, to lose the lead late in the tournament -- Chad.
CHAD MYERS, CNN CORRESPONDENT: That was it right there, Carol, those two putts. Otherwise it would have been a tie.
(WEATHER REPORT)
COSTELLO: A disturbing allegation out of Saudi Arabia this morning. The al Qaeda group responsible for kidnapping and beheading American Paul Johnson claims to have had inside help from Saudi security forces. In the meantime, the search for Johnson's body is still under way.
CNN's Nic Robertson joins us live by phone from the Saudi capital of Riyadh. What's going on now -- Nic.
NIC ROBERTSON, CNN CORRESPONDENT: Well, Carol, the operation to try and discover the whereabouts of Paul Johnson's body is still an active operation. We have been told that, at times, it's been going on north of the capital Riyadh. There are very few public details about this, other than that it is an ongoing operation.
There was an operation in Riyadh last night. It surrounded several houses. It involved many police helicopters and armored vehicles. It's not clear if that operation resulted in the arrest or killing of any al Qaeda members, but we are told that that operation was triggered by members of the Saudi public passing information to the police that there's a -- that something had been going on in that particular neighborhood -- Carol.
COSTELLO: And in regards to the arrests, I know they've made a lot of arrests so far.
But any more that you know of, Nic?
ROBERTSON: Currently they are still interrogating the at least 10 people they detained in the shootout on Friday night following the murder of Paul Johnson. Police and security sources here are not telling us what sort of information they are getting. What they are saying is that they hope that this will lead to further arrests. They are confident that it will, perhaps, lead them to safe houses, perhaps other members of the organization.
But in the meantime, already al Qaeda has nominated a new leader to replace Abdel Aziz Al Muqrin, the leader of al Qaeda who was shot dead Friday night, the man behind Paul Johnson's kidnapping and killing. That man, somebody on Saudi Arabia's most wanted list. He is number five on the 26 most wanted list, published in December of last year.
But security sources here say that they have killed, so far, 10 people on that list of 26 and have another eight in detention -- Carol.
COSTELLO: And, Nic, as far as the allegations that al Qaeda had inside help from the Saudi security forces, do you have any new information on that for us this morning?
ROBERTSON: Well, that's something that Saudi officials absolutely deny that has happened. They say the possibility that, for example, that they were wearing police uniforms, as was claimed by the al Qaeda cell on their Web site, they say that these uniforms are available in stores. However, some analysts do say that there has been at least one known incident in the past where there has been some crossover between security forces and al Qaeda.
But the broader view here, the broader view in the public is that this is not a big problem, that there is not a big crossover between the two. Indeed, officials here say look, if there was more infiltration by al Qaeda into the security forces, then there would be more attacks on government buildings.
But perhaps one just note of caution here. It is interesting to note that this new head of al Qaeda was in the Saudi security forces back in the early 1990s, a policeman doing guard duty at a jail in Saudi Arabia -- Carol.
COSTELLO: Fascinating.
Nic Robertson reporting live for us from Riyadh this morning.
Paul Johnson's family remains in seclusion in New Jersey as they continue to grieve in private. Prayers were said for the family during services in Egg Harbor Township, at a church where Johnson's sister attends. Friends and neighbors offered words of comfort.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Well, I lost my husband 15 years ago, so I imagine she's going through a quite drastic time right now -- empty, you know, her brother left. But I believe that god is in control and good will come out of all this.
REV. KYLE HUBER, SENIOR PATOR, GREENTREE CHURCH: That's our consolation, to know that we'll just have a body and once that body is gone, the spirit still lives on. And that's comforting for us.
UNIDENTIFIED MALE: For people who are concerned with the family, this is not a short-term pain and so don't forget your prayers and don't forget notes and cards into the future. The pain will never go away and our concern should continue for the long-term. It will always be meaningful.
(END VIDEO CLIP)
COSTELLO: In Florida, people have turned Johnson's son's home into a shrine, leaving flowers, teddy bears and American flags.
South Korea will send a delegation to Jordan later today to gain the release of one of its citizens being held hostage in Iraq. Kidnappers have threatened to behead the man if South Korea doesn't withdraw its troops from Iraq and as many as 10 other foreigners are reportedly being held captive with him.
Seoul bureau chief Sohn Jie-Ae will have an update for you in just a few minutes.
A military judge in Baghdad has declared the Abu Ghraib Prison a crime scene and says it cannot be destroyed until the prisoner abuse trials are over.
Our chief international correspondent, Christiane Amanpour, is covering the pretrial hearings in the Iraqi capital.
She joins us live -- hello, Christiane.
CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Carol, good morning to you.
Of course, the Abu Ghraib Prison became notorious not just in Saddam's area and not just after these pictures came out, but, of course, when President Bush said that pending, or with the approval of the Iraqi government, it would be torn down as a symbol of a new beginning.
Now, the defense attorneys are saying that they do not want it torn down because it's a crime scene and they want it to keep standing until the end of these trials, or throughout the trials. And the judge has agreed with that. He's sustained that motion that they brought up in today's pretrial hearings.
The Iraqi government also has told us that it wants Abu Ghraib to remain standing and to be a prison under its jurisdiction after the June 30 hand over.
Now, in terms of the legal proceedings here, three of those U.S. service personnel who are accused in this horrendous prisoner abuse scandal at the Abu Ghraib Prison have been watching and undergoing these pretrial hearings today at the convention center. It's in the middle of what's called the green zone, the occupation headquarters, and it's part of the court martial process.
There's just been a recess, but the judges -- the military judge has, as I say, sustained the Abu Ghraib issue, but denied what two of the lawyers have asked for as a change of venue, saying that their clients could not get a free and fair trial here, because this being a combat zone, they wouldn't be able to get the witnesses into this area at all, because it would be simply too dangerous. They don't have subpoena power. They can't compel civilian witnesses to come here.
So it was First Specialist Graner who's just terminated his pretrial hearing. He's been charged with the most significant counts of mistreatment and willful dereliction of duty. He faces a maximum of 24 years in jail as well as, of course, docked pay and a dishonorable discharge.
Before that, it was Sergeant Javal Davis, who's been charged with among the least crimes. He faces a maximum of eight years if he is found guilty of all the charges. Javal Davis' lawyer spoke to us afterwards and their defense is going to be that they were just following orders.
(BEGIN VIDEO CLIP)
PAUL BERGIN, ATTORNEY FOR SERGEANT DAVIS: We know that they were following orders. And how do we know that? Because high ranking individuals in government, in the military, have given statements under oath in reference to what was permissible, in reference to the interrogation techniques.
(END VIDEO CLIP)
AMANPOUR: Now, the defense is that they were following orders from very high command. As you know, the government, the U.S. has said that it's just a few bad apples, that they were responsible for what they did and they need to be brought to justice, but that it doesn't go beyond the immediate environment.
To that end, the defense attorneys have asked for access to high level memos that have been flying between the Department of Justice, the White House, the Department of Defense, that's alleged to contain directives, if you like, about what is permissible in terms of interrogation procedures, heavy interrogation procedures. But the judge here has denied them access to those memos. But he said that they can talk to General Abizaid, who is the overall commander, CENTCOM, of all the forces in the Middle East. They can talk to General Sanchez and his replacement. Those are the theater commanders here. And they can talk to top ranking officials, generals all the way down from there to try to build their case.
As I say, they were denied a change of venue for the court martials -- Carol.
COSTELLO: We'll get back to you when there's more.
Christiane Amanpour reporting live this morning.
In addition to the hearings in Iraq, another soldier, Private Lynndie England, has a hearing tomorrow. It'll take place at Fort Bragg, North Carolina. England was photographed pointing at prisoners' genitals and holding a leash attached to a naked prisoner. She faces 14 charges.
And as we get closer to the U.S. handover to Iraq, CNN is taking the pulse of the world opinion on the situation. Today, CNN's Jim Clancy hosts a town hall forum in Dubai on the Arab world's obligation to Iraq and its relationship with the United States. That's today at 1:00 p.m. Eastern, 10:00 a.m. Pacific right here on CNN.
Jack be nimble, Jack be quick, if you need a student loan, you've got to be quick. Congress is thinking about changing the rules again.
Read all about him -- it's the media blitz of media blitzes for "My Life" by Bill Clinton.
And a loving brother recalls the shocking price paid for civil rights in Mississippi 40 years ago today.
And launching a new chapter in aviation history today and capturing a $10 million prize.
This is DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It is 5:15 Eastern.
Here's what's all new this morning. Pretrial hearings under way in Iraq in the case of three American soldiers allegedly involving in the prisoner abuse scandal. The lawyer for one of the accused says he wants to call President Bush as a witness in the case.
South Korea is dispatching a team to negotiate the release of a man held hostage. Militant kidnappers say they'll kill the man if South Korean troops are not removed from Iraq. The South Korean government says it has no plans to withdraw.
In money news, the Bush administration says the economy is doing well and should continue to grow for the rest of the year. Treasury Secretary John Snow also says the war in Iraq has deflected attention from the economic recovery.
In culture, Paul McCartney played his first ever show in St. Petersburg, Russia. The concert was delayed almost an hour and a half, though, as people waited to pass through metal detectors and security lines.
In sports, they are gathered for the opening of the Wimbledon championship. Play gets under way in just about two hours. Venus Williams, Lindsay Davenport and Martina Navratilova all in action today -- Chad.
(WEATHER REPORT)
COSTELLO: Paying for a college education can be a tremendous burden for graduates, or their parents. And with interest rates poised to head up again, it can only get worse. Unless, as CNN's Kathleen Hays reports, you act fast now.
(BEGIN VIDEOTAPE)
KATHLEEN HAYS, CNN CORRESPONDENT (voice-over): If you've got student loans hanging over your head, now's the time to save some money. Think about consolidating your student loans while interest rates remain at rock bottom levels.
MARK KANTROWITZ, FOUNDER, FINAID.ORG: This is a one time opportunity. The interest rates on student loans are at the lowest in the history of the student loan program. They haven't been this low ever. This is an opportunity that won't come again.
HAYS: Student loan rates have fallen sharply in the past few years, saving borrowers a bundle. The rate on the government's most popular loan, at 8.19 percent in 2000, drops on July 1 to 3.37 percent, the lowest such rate on record.
But this is all about to change. Inflation is heating up now and the Federal Reserve has made it crystal clear that it's going to start raising rates again.
DIANE SWONK, ECONOMIST, BANK ONE: Even if the Fed moves gradually, this is the time to take your money and run. It's also not a time for someone to be on an adjustable rate loan. They really want to lock into a low long-term rate rather than get stuck and maybe find themselves unable to pay back a rate a couple years down the road that's much higher than it is today.
HAYS: If you have more than one, the government allows you to consolidate all your variable rate student loans into one fixed rate loan, a rate that will stay in place until you finish paying off a loan entirely.
KANTROWITZ: I'm predicting that interest rates are going to go up to about four and a half percent a year from now. So if you were to lock in now versus a year from now, a typical student graduating with $17,000 in debt is going to save $1,000. So the savings for a student over the lifetime of the loan can be considerable.
HAYS (on camera): Congress is looking to change the student loan rules because it looks like so many people are going to consolidate at a low fixed rate that it will cost the government too much money. So don't procrastinate -- consolidate now.
Kathleen Hays, CNN, New York.
(END VIDEOTAPE)
COSTELLO: On Wall Street, stocks have been rather aimless. So, let's see what's happening this morning overseas.
For that, we head live to London and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning.
Well, as you can see right now, I've got a mixed bag going on here.
The FTSE is off by about a quarter of one percent.
But the DAX is up better than a half percent.
The CAC is up a quarter of one percent.
And Zurich's SMI is up about half of one percent.
Last week we had a better week in Europe than you did in the U.S. The Dow Jones stocks, 600. This is a broad index of market performance, up better than a half percent.
The S&P 500 was down just slightly, a tenth of one percent. But I think the significant thing there is that it was down for the first time in four weeks.
And elsewhere, looking at currencies, the euro is at 121 against the greenback, the pound at 183 and the yen at 108. And there are predictions that the dollar will weaken over the coming months because of the big current account deficit. It was more than five percent of GDP in the latest report, which came out on Friday -- back to you.
COSTELLO: Todd Benjamin live in London.
Thank you.
Coming up next on DAYBREAK, the Olympic Torch makes a pit stop in the United States. Coming up next, the sights, the sounds and the stars who are carrying the torch ever closer to Athens.
We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: The Olympic flame finishes up its journey through North America as runners carry the torch through Montreal. And then the Olympic flame arrives in Belgium later today to begin the European leg. The Summer Games, as you know by now, or maybe you don't, they begin in Athens on August 13.
The other torch bearers included former Olympic athletes, celebrities and a number of extraordinary every day people, and, unbelievably, me.
Here's a look at the torch's travels on its way to Athens.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Now, now. Now, now, now. Time keeps on slipping into the future. Time keeps on slipping, slipping into the future.
UNIDENTIFIED MALE: This is great!
UNIDENTIFIED MALE: Fly like an eagle to the sea. Fly like an eagle, let that spirit carry me. I want to fly, oh yes, fly, fly into the future. Time keeps on slipping, slipping, slipping into the future. Time flies, don't you know? Time keeps on slipping, slipping, slipping into the future. Time flies, don't it, baby?
(END VIDEOTAPE)
COSTELLO: I'm getting teary eyed.
MYERS: Did I see you in there?
COSTELLO: No.
MYERS: Oh, did they cut you? You ended up on the cutting room floor?
COSTELLO: I'm on the cutting room floor.
MYERS: You and Paula Zahn. I didn't see Paula there either.
COSTELLO: Oh, but there are -- but that's Randy. I lit, oh, well, you know how that goes. I did the relay of the flame from Randy to me and...
MYERS: Wow, look at that.
COSTELLO: And it was the most, one of the most exciting things I have ever done.
MYERS: You said it got heavy, huh?
COSTELLO: It did. It's a pound and a half, but after you run with it with a quarter mile with your arm up in the air, I must say, my arm was tired. But I had my escort runner by me. And, of course, we were surrounded by security because we didn't want anyone to steal the flame.
MYERS: Right.
COSTELLO: And there was a person nearby, also, in case the flame would go out so that they would relight it right away.
MYERS: Well, I was noticing that on that other guy from Montreal.
COSTELLO: I know.
MYERS: It actually did go out.
COSTELLO: Well, you know...
MYERS: They had to bring him another flame.
COSTELLO: It's a lot of people. No one's perfect.
MYERS: So there's a keeper of the flame, obviously. There's a flame still going other than that one you're carrying that they can relight that flame with?
COSTELLO: Yes, yes, exactly, because you wasn't to keep it eternal. You want to keep the flame lit at all times.
MYERS: There it is.
COSTELLO: This is the torch.
MYERS: How cool is that?
COSTELLO: And, see, there's a little thing at the bottom. And I guess there must be some sort of propane in here, would that be it?
MYERS: Yes, don't take it apart.
COSTELLO: No, I won't.
MYERS: I just -- I'd be the one who'd take it apart and then couldn't get it back together.
COSTELLO: But it was, it was one of the most incredible experiences of my life. And for those of you along the route cheering me on, I appreciate it. MYERS: Yes, that's awesome.
COSTELLO: It just brought tears to your eyes.
MYERS: Yes. It's great for our athletes, too.
COSTELLO: Oh, definitely so.
MYERS: So many times the Summer Olympics won't get this much exposure. You know, the Winter Olympics do, everybody likes the hockey, blah, blah, blah. But the Summer Olympics are really doing well this year.
COSTELLO: Exactly. So watch them in August.
MYERS: Congratulations.
COSTELLO: Thank you, Chad.
MYERS: You bet.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
History in the making -- the first private space flight prepares for a civilian takeoff.
MYERS: That can't fly.
COSTELLO: I'm telling you, it's amazing. We'll have more on this from the Mojave Desert.
Bill Clinton is back. What's all the buzz behind his new book? We'll hear some talk from Clinton himself.
And a hostage held in Iraq and his dramatic plea as a deadline looms. We'll have the latest for you ahead.
This is DAYBREAK for Monday.
(COMMERCIAL BREAK)
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Aired June 21, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: In Iraq, the wheels of justice begin to turn in the prisoner abuse scandal.
It is Monday, June 21.
This is DAYBREAK.
And good morning to you.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Those are the latest headlines for you now.
Pretrial hearings under way in Baghdad in the Iraq prisoner abuse scandal. A military judge has agreed to allow a defense attorney to question top U.S. generals.
Authorities in Saudi Arabia are still searching for the body of Paul Johnson. He was beheaded by al Qaeda militants three days ago.
In money news, Wachovia, the nation's fourth largest bank, is said to be in talks to buy Southtrust Corporation. The deal would expand Wachovia's presence in the Southeast.
In culture, "Dodgeball" was tops at the box office. The comedy pulled in $30 million over the weekend. "Dodgeball" did better than the Tom Hanks movie, "The Terminal," which came in a distant second. "Harry Potter" has dropped to third.
In sports, Retief Goosen won his second U.S. Open title with a two shot win over Masters champion Phil Mickelson. Mickelson double bogied the 17th hole, to lose the lead late in the tournament -- Chad.
CHAD MYERS, CNN CORRESPONDENT: That was it right there, Carol, those two putts. Otherwise it would have been a tie.
(WEATHER REPORT)
COSTELLO: A disturbing allegation out of Saudi Arabia this morning. The al Qaeda group responsible for kidnapping and beheading American Paul Johnson claims to have had inside help from Saudi security forces. In the meantime, the search for Johnson's body is still under way.
CNN's Nic Robertson joins us live by phone from the Saudi capital of Riyadh. What's going on now -- Nic.
NIC ROBERTSON, CNN CORRESPONDENT: Well, Carol, the operation to try and discover the whereabouts of Paul Johnson's body is still an active operation. We have been told that, at times, it's been going on north of the capital Riyadh. There are very few public details about this, other than that it is an ongoing operation.
There was an operation in Riyadh last night. It surrounded several houses. It involved many police helicopters and armored vehicles. It's not clear if that operation resulted in the arrest or killing of any al Qaeda members, but we are told that that operation was triggered by members of the Saudi public passing information to the police that there's a -- that something had been going on in that particular neighborhood -- Carol.
COSTELLO: And in regards to the arrests, I know they've made a lot of arrests so far.
But any more that you know of, Nic?
ROBERTSON: Currently they are still interrogating the at least 10 people they detained in the shootout on Friday night following the murder of Paul Johnson. Police and security sources here are not telling us what sort of information they are getting. What they are saying is that they hope that this will lead to further arrests. They are confident that it will, perhaps, lead them to safe houses, perhaps other members of the organization.
But in the meantime, already al Qaeda has nominated a new leader to replace Abdel Aziz Al Muqrin, the leader of al Qaeda who was shot dead Friday night, the man behind Paul Johnson's kidnapping and killing. That man, somebody on Saudi Arabia's most wanted list. He is number five on the 26 most wanted list, published in December of last year.
But security sources here say that they have killed, so far, 10 people on that list of 26 and have another eight in detention -- Carol.
COSTELLO: And, Nic, as far as the allegations that al Qaeda had inside help from the Saudi security forces, do you have any new information on that for us this morning?
ROBERTSON: Well, that's something that Saudi officials absolutely deny that has happened. They say the possibility that, for example, that they were wearing police uniforms, as was claimed by the al Qaeda cell on their Web site, they say that these uniforms are available in stores. However, some analysts do say that there has been at least one known incident in the past where there has been some crossover between security forces and al Qaeda.
But the broader view here, the broader view in the public is that this is not a big problem, that there is not a big crossover between the two. Indeed, officials here say look, if there was more infiltration by al Qaeda into the security forces, then there would be more attacks on government buildings.
But perhaps one just note of caution here. It is interesting to note that this new head of al Qaeda was in the Saudi security forces back in the early 1990s, a policeman doing guard duty at a jail in Saudi Arabia -- Carol.
COSTELLO: Fascinating.
Nic Robertson reporting live for us from Riyadh this morning.
Paul Johnson's family remains in seclusion in New Jersey as they continue to grieve in private. Prayers were said for the family during services in Egg Harbor Township, at a church where Johnson's sister attends. Friends and neighbors offered words of comfort.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Well, I lost my husband 15 years ago, so I imagine she's going through a quite drastic time right now -- empty, you know, her brother left. But I believe that god is in control and good will come out of all this.
REV. KYLE HUBER, SENIOR PATOR, GREENTREE CHURCH: That's our consolation, to know that we'll just have a body and once that body is gone, the spirit still lives on. And that's comforting for us.
UNIDENTIFIED MALE: For people who are concerned with the family, this is not a short-term pain and so don't forget your prayers and don't forget notes and cards into the future. The pain will never go away and our concern should continue for the long-term. It will always be meaningful.
(END VIDEO CLIP)
COSTELLO: In Florida, people have turned Johnson's son's home into a shrine, leaving flowers, teddy bears and American flags.
South Korea will send a delegation to Jordan later today to gain the release of one of its citizens being held hostage in Iraq. Kidnappers have threatened to behead the man if South Korea doesn't withdraw its troops from Iraq and as many as 10 other foreigners are reportedly being held captive with him.
Seoul bureau chief Sohn Jie-Ae will have an update for you in just a few minutes.
A military judge in Baghdad has declared the Abu Ghraib Prison a crime scene and says it cannot be destroyed until the prisoner abuse trials are over.
Our chief international correspondent, Christiane Amanpour, is covering the pretrial hearings in the Iraqi capital.
She joins us live -- hello, Christiane.
CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Carol, good morning to you.
Of course, the Abu Ghraib Prison became notorious not just in Saddam's area and not just after these pictures came out, but, of course, when President Bush said that pending, or with the approval of the Iraqi government, it would be torn down as a symbol of a new beginning.
Now, the defense attorneys are saying that they do not want it torn down because it's a crime scene and they want it to keep standing until the end of these trials, or throughout the trials. And the judge has agreed with that. He's sustained that motion that they brought up in today's pretrial hearings.
The Iraqi government also has told us that it wants Abu Ghraib to remain standing and to be a prison under its jurisdiction after the June 30 hand over.
Now, in terms of the legal proceedings here, three of those U.S. service personnel who are accused in this horrendous prisoner abuse scandal at the Abu Ghraib Prison have been watching and undergoing these pretrial hearings today at the convention center. It's in the middle of what's called the green zone, the occupation headquarters, and it's part of the court martial process.
There's just been a recess, but the judges -- the military judge has, as I say, sustained the Abu Ghraib issue, but denied what two of the lawyers have asked for as a change of venue, saying that their clients could not get a free and fair trial here, because this being a combat zone, they wouldn't be able to get the witnesses into this area at all, because it would be simply too dangerous. They don't have subpoena power. They can't compel civilian witnesses to come here.
So it was First Specialist Graner who's just terminated his pretrial hearing. He's been charged with the most significant counts of mistreatment and willful dereliction of duty. He faces a maximum of 24 years in jail as well as, of course, docked pay and a dishonorable discharge.
Before that, it was Sergeant Javal Davis, who's been charged with among the least crimes. He faces a maximum of eight years if he is found guilty of all the charges. Javal Davis' lawyer spoke to us afterwards and their defense is going to be that they were just following orders.
(BEGIN VIDEO CLIP)
PAUL BERGIN, ATTORNEY FOR SERGEANT DAVIS: We know that they were following orders. And how do we know that? Because high ranking individuals in government, in the military, have given statements under oath in reference to what was permissible, in reference to the interrogation techniques.
(END VIDEO CLIP)
AMANPOUR: Now, the defense is that they were following orders from very high command. As you know, the government, the U.S. has said that it's just a few bad apples, that they were responsible for what they did and they need to be brought to justice, but that it doesn't go beyond the immediate environment.
To that end, the defense attorneys have asked for access to high level memos that have been flying between the Department of Justice, the White House, the Department of Defense, that's alleged to contain directives, if you like, about what is permissible in terms of interrogation procedures, heavy interrogation procedures. But the judge here has denied them access to those memos. But he said that they can talk to General Abizaid, who is the overall commander, CENTCOM, of all the forces in the Middle East. They can talk to General Sanchez and his replacement. Those are the theater commanders here. And they can talk to top ranking officials, generals all the way down from there to try to build their case.
As I say, they were denied a change of venue for the court martials -- Carol.
COSTELLO: We'll get back to you when there's more.
Christiane Amanpour reporting live this morning.
In addition to the hearings in Iraq, another soldier, Private Lynndie England, has a hearing tomorrow. It'll take place at Fort Bragg, North Carolina. England was photographed pointing at prisoners' genitals and holding a leash attached to a naked prisoner. She faces 14 charges.
And as we get closer to the U.S. handover to Iraq, CNN is taking the pulse of the world opinion on the situation. Today, CNN's Jim Clancy hosts a town hall forum in Dubai on the Arab world's obligation to Iraq and its relationship with the United States. That's today at 1:00 p.m. Eastern, 10:00 a.m. Pacific right here on CNN.
Jack be nimble, Jack be quick, if you need a student loan, you've got to be quick. Congress is thinking about changing the rules again.
Read all about him -- it's the media blitz of media blitzes for "My Life" by Bill Clinton.
And a loving brother recalls the shocking price paid for civil rights in Mississippi 40 years ago today.
And launching a new chapter in aviation history today and capturing a $10 million prize.
This is DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It is 5:15 Eastern.
Here's what's all new this morning. Pretrial hearings under way in Iraq in the case of three American soldiers allegedly involving in the prisoner abuse scandal. The lawyer for one of the accused says he wants to call President Bush as a witness in the case.
South Korea is dispatching a team to negotiate the release of a man held hostage. Militant kidnappers say they'll kill the man if South Korean troops are not removed from Iraq. The South Korean government says it has no plans to withdraw.
In money news, the Bush administration says the economy is doing well and should continue to grow for the rest of the year. Treasury Secretary John Snow also says the war in Iraq has deflected attention from the economic recovery.
In culture, Paul McCartney played his first ever show in St. Petersburg, Russia. The concert was delayed almost an hour and a half, though, as people waited to pass through metal detectors and security lines.
In sports, they are gathered for the opening of the Wimbledon championship. Play gets under way in just about two hours. Venus Williams, Lindsay Davenport and Martina Navratilova all in action today -- Chad.
(WEATHER REPORT)
COSTELLO: Paying for a college education can be a tremendous burden for graduates, or their parents. And with interest rates poised to head up again, it can only get worse. Unless, as CNN's Kathleen Hays reports, you act fast now.
(BEGIN VIDEOTAPE)
KATHLEEN HAYS, CNN CORRESPONDENT (voice-over): If you've got student loans hanging over your head, now's the time to save some money. Think about consolidating your student loans while interest rates remain at rock bottom levels.
MARK KANTROWITZ, FOUNDER, FINAID.ORG: This is a one time opportunity. The interest rates on student loans are at the lowest in the history of the student loan program. They haven't been this low ever. This is an opportunity that won't come again.
HAYS: Student loan rates have fallen sharply in the past few years, saving borrowers a bundle. The rate on the government's most popular loan, at 8.19 percent in 2000, drops on July 1 to 3.37 percent, the lowest such rate on record.
But this is all about to change. Inflation is heating up now and the Federal Reserve has made it crystal clear that it's going to start raising rates again.
DIANE SWONK, ECONOMIST, BANK ONE: Even if the Fed moves gradually, this is the time to take your money and run. It's also not a time for someone to be on an adjustable rate loan. They really want to lock into a low long-term rate rather than get stuck and maybe find themselves unable to pay back a rate a couple years down the road that's much higher than it is today.
HAYS: If you have more than one, the government allows you to consolidate all your variable rate student loans into one fixed rate loan, a rate that will stay in place until you finish paying off a loan entirely.
KANTROWITZ: I'm predicting that interest rates are going to go up to about four and a half percent a year from now. So if you were to lock in now versus a year from now, a typical student graduating with $17,000 in debt is going to save $1,000. So the savings for a student over the lifetime of the loan can be considerable.
HAYS (on camera): Congress is looking to change the student loan rules because it looks like so many people are going to consolidate at a low fixed rate that it will cost the government too much money. So don't procrastinate -- consolidate now.
Kathleen Hays, CNN, New York.
(END VIDEOTAPE)
COSTELLO: On Wall Street, stocks have been rather aimless. So, let's see what's happening this morning overseas.
For that, we head live to London and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning.
Well, as you can see right now, I've got a mixed bag going on here.
The FTSE is off by about a quarter of one percent.
But the DAX is up better than a half percent.
The CAC is up a quarter of one percent.
And Zurich's SMI is up about half of one percent.
Last week we had a better week in Europe than you did in the U.S. The Dow Jones stocks, 600. This is a broad index of market performance, up better than a half percent.
The S&P 500 was down just slightly, a tenth of one percent. But I think the significant thing there is that it was down for the first time in four weeks.
And elsewhere, looking at currencies, the euro is at 121 against the greenback, the pound at 183 and the yen at 108. And there are predictions that the dollar will weaken over the coming months because of the big current account deficit. It was more than five percent of GDP in the latest report, which came out on Friday -- back to you.
COSTELLO: Todd Benjamin live in London.
Thank you.
Coming up next on DAYBREAK, the Olympic Torch makes a pit stop in the United States. Coming up next, the sights, the sounds and the stars who are carrying the torch ever closer to Athens.
We'll be right back.
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COSTELLO: The Olympic flame finishes up its journey through North America as runners carry the torch through Montreal. And then the Olympic flame arrives in Belgium later today to begin the European leg. The Summer Games, as you know by now, or maybe you don't, they begin in Athens on August 13.
The other torch bearers included former Olympic athletes, celebrities and a number of extraordinary every day people, and, unbelievably, me.
Here's a look at the torch's travels on its way to Athens.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Now, now. Now, now, now. Time keeps on slipping into the future. Time keeps on slipping, slipping into the future.
UNIDENTIFIED MALE: This is great!
UNIDENTIFIED MALE: Fly like an eagle to the sea. Fly like an eagle, let that spirit carry me. I want to fly, oh yes, fly, fly into the future. Time keeps on slipping, slipping, slipping into the future. Time flies, don't you know? Time keeps on slipping, slipping, slipping into the future. Time flies, don't it, baby?
(END VIDEOTAPE)
COSTELLO: I'm getting teary eyed.
MYERS: Did I see you in there?
COSTELLO: No.
MYERS: Oh, did they cut you? You ended up on the cutting room floor?
COSTELLO: I'm on the cutting room floor.
MYERS: You and Paula Zahn. I didn't see Paula there either.
COSTELLO: Oh, but there are -- but that's Randy. I lit, oh, well, you know how that goes. I did the relay of the flame from Randy to me and...
MYERS: Wow, look at that.
COSTELLO: And it was the most, one of the most exciting things I have ever done.
MYERS: You said it got heavy, huh?
COSTELLO: It did. It's a pound and a half, but after you run with it with a quarter mile with your arm up in the air, I must say, my arm was tired. But I had my escort runner by me. And, of course, we were surrounded by security because we didn't want anyone to steal the flame.
MYERS: Right.
COSTELLO: And there was a person nearby, also, in case the flame would go out so that they would relight it right away.
MYERS: Well, I was noticing that on that other guy from Montreal.
COSTELLO: I know.
MYERS: It actually did go out.
COSTELLO: Well, you know...
MYERS: They had to bring him another flame.
COSTELLO: It's a lot of people. No one's perfect.
MYERS: So there's a keeper of the flame, obviously. There's a flame still going other than that one you're carrying that they can relight that flame with?
COSTELLO: Yes, yes, exactly, because you wasn't to keep it eternal. You want to keep the flame lit at all times.
MYERS: There it is.
COSTELLO: This is the torch.
MYERS: How cool is that?
COSTELLO: And, see, there's a little thing at the bottom. And I guess there must be some sort of propane in here, would that be it?
MYERS: Yes, don't take it apart.
COSTELLO: No, I won't.
MYERS: I just -- I'd be the one who'd take it apart and then couldn't get it back together.
COSTELLO: But it was, it was one of the most incredible experiences of my life. And for those of you along the route cheering me on, I appreciate it. MYERS: Yes, that's awesome.
COSTELLO: It just brought tears to your eyes.
MYERS: Yes. It's great for our athletes, too.
COSTELLO: Oh, definitely so.
MYERS: So many times the Summer Olympics won't get this much exposure. You know, the Winter Olympics do, everybody likes the hockey, blah, blah, blah. But the Summer Olympics are really doing well this year.
COSTELLO: Exactly. So watch them in August.
MYERS: Congratulations.
COSTELLO: Thank you, Chad.
MYERS: You bet.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
History in the making -- the first private space flight prepares for a civilian takeoff.
MYERS: That can't fly.
COSTELLO: I'm telling you, it's amazing. We'll have more on this from the Mojave Desert.
Bill Clinton is back. What's all the buzz behind his new book? We'll hear some talk from Clinton himself.
And a hostage held in Iraq and his dramatic plea as a deadline looms. We'll have the latest for you ahead.
This is DAYBREAK for Monday.
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