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CNN Live At Daybreak

Iran to Prosecute Eight British Sailors; Dozens Killed in Attacks on Russian Government

Aired June 22, 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: Some British sailors are in hot water with Iran.
It is Tuesday, June 22. This is DAYBREAK.

And good morning to you. From the CNN global headquarters in Atlanta, I'm Carol Costello. Let me bring you up to date with the latest headlines now.

Iran says it will prosecute eight armed British sailors for illegally entering Iranian waters. The crewmen were detained while in a main (ph) waterway that divides Iraq and Iran near the Persian Gulf. Britain says the sailors were delivering a boat to Iraq's new patrol service.

At least 40 people were killed during fierce fighting in the Ingushetia region of Russia. Chechen rebels are suspected of launching the attacks. We'll have a live report for you coming up in a few minutes.

In money news, gas prices have fallen for the fourth straight week. The average price of a gallon regular unleaded stands at $1.93. Of course, that's still 44 cents higher than it cost a year ago.

In culture, did you ever wonder what Beyonce smells like? I know you have. Tommy Hilfiger will unveil a new fragrance this fall that's supposed to capture her spirit. It'll be called "True Star."

In sports, 47-year-old Martina Navratilova was victorious in her first round match at Wimbledon. The nine-time Wimbledon champion lost just one game en route to her win over 24-year-old Catalina Castano. Navratilova is the oldest woman to win at Wimbledon since 1922 -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Nice pronouncer on Wimbledon, too.

COSTELLO: Thank you. I did the "B" sound. I made sure.

MYERS: Exactly, because so many people, as like -- as I just said, Wimble-ton. And it's not.

Good morning, everybody. Seeing the rain battering Amarillo yesterday. Places out to the north and west of Amarillo, over eight inches of rain. And obviously, this is not any fun. You can see the damage to the roof of that house from the hailstones. Some stones out there, West Texas, as big as baseballs yesterday.

(WEATHER REPORT)

COSTELLO: Looks like a diplomatic rift is developing between Iran and Britain this morning. Iran's state-run TV says Iran will prosecute eight British sailors for illegally entering Iran's territorial waters. Iran detained the sailors and impounded their patrol boats yesterday. The British government is demanding answers from Tehran. We'll have a live report for you from London at the half-hour.

Turning now to the prisoner-abuse scandal and the woman pictures in some of the disturbing photos from Abu Ghraib, a preliminary hearing for Private First Class Lynndie England has now been rescheduled. An attorney says it's been pushed back to next month partly because one member of her defense team has left the case. England faces numerous charges, including assault against Iraqi detainees.

Allegations of prisoner abuse at Guantanamo Bay, Cuba, are also under investigation. Now a memo that's surfaced that suggests Defense Secretary Rumsfeld signed off on questionable tactics.

CNN's Jamie McIntyre has more for you.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): It was October of 2002 and at the Guantanamo Bay Detention Facility, U.S. interrogators desperately wanted information from an al Qaeda detainee believed to know about an upcoming attack. The Pentagon signed off on a "get tough" approach.

Sources say the memos will show Defense Secretary Donald Rumsfeld approved a series of more aggressive interrogation techniques for use against one prisoner, Mohammed al-Kahtani, a Saudi, the so-called 20th hijacker who was supposed to be on one of the September 11th planes.

Among the techniques, water boarding in which the subject is strapped down and dunked in water or otherwise made to feel he's going to drown.

But the Pentagon says the water-boarding tactic was never used and that in January, Rumsfeld rescinded his approval in the face of objections from some of his own lawyers.

Instead, Kahtani was subjected to 20-hour interrogation sessions, given only MREs to eat, and forcibly shaved.

Just last week, Rumsfeld insisted no techniques he approved constituted torture.

DONALD RUMSFELD, DEFENSE SECRETARY: That word gets used by some people in a way that is fair from their standpoint, but doesn't fit a dictionary definition.

MCINTYRE: Human rights advocates disagree, particularly with regards to water boarding.

ELISA MASSIMINO, HUMAN RIGHTS FIRST: Water boarding fits the international and domestic definition of torture and, if the administration claims it's necessary to use it, then they ought to go to Congress and ask Congress to change the law.

MCINTYRE (on camera): Up until now, the Pentagon has refused to disclose exactly what interrogation techniques were employed at Guantanamo Bay, except to insist that they did now violate the Geneva Conventions. With the release of all the relevant memos this week, people will be able to judge for themselves.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: South Korea says it doesn't know if a Korean kidnapped in Iraq is still alive. The kidnappers had threatened to behead the man in 24 hours if South Korea didn't back away from plans to send 3,000 more troops to Iraq. Seoul rejected that demand. The deadline passed last night with no news of this man's fate.

Well, this won't come as any surprise to you, but at least it will be official. The State Department is expected to announce revised figures showing a big jump in the number of terror victims worldwide last year. Comes after the government admitted its initial report mistakenly low-balled the number of attacks. According to USA Today, the report is expected to show a dramatic increase in both the number of the deaths and casualties in terrorist attacks. But the paper also says the revised report shows that international cooperation and a heightened awareness of the terror threat are bringing positive results.

To Russia now, where government troops and rebels have been battling it out in three towns. The number of dead and wounded are reportedly in the dozens. It happened in a southern region of Chechnya.

Our Moscow bureau chief, Jill Dougherty, joins us live with more details.

Hello, Jill.

JILL DOUGHERTY, CNN MOSCOW BUREAU CHIEF: Hello, Carol.

Well, it happened in these very small republic of Ingushetia. That's right on the border with Chechnya, and in fact it's a place where there are a lot of refugees who have come out from Chechnya trying to get away from the fighting.

But the fighting followed them, and the way it's explained by the Russian officials -- they say that about 100 rebel fighters made their way from Chechnya and from other regions into that republic, and then began to attack government buildings. And the fighting, as we heard from people on the phone throughout the night, was very, very intense. There was -- at this point we believe 46 people were killed, and that included both civilians and military. Buildings were set on fire, and then finally the Interior Ministry forces were able to fight back and push them away. And at this point, they say they were not able to get any buildings -- Carol.

COSTELLO: How is the Russian government fighting back? Can they do anything?

DOUGHERTY: Well, they've been attempting to, of course, carry out military activities with Chechnya itself, and have been claiming that things are getting more normal, things are getting back to normal.

But the problem is, this would be an indication of how some of that violence is spreading from outside of Chechnya, going into other regions outside of Chechnya. It's a worrisome thing, and although they are trying to, in effect, downplay it, saying there were only 100 fighters, it is. A lot of questions are being asked, how those fighters could get in there and begin the mayhem that they carried out.

COSTELLO: Jill Dougherty reporting live from Moscow this morning. Thank you.

Now to the Scott Peterson trial. Several of Laci Peterson's friends took the stand, and their testimony contradicted some of the events surrounding her disappearance. But as CNN's Rusty Dornin reports from Redwood City, California, the day started with a decision on jury misconduct.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Juror No. 5 stays. The judge says there was no misconduct on the part of that juror, or Laci Peterson's brother, Brent Rocha. The two bumped into one another last Thursday and had a brief exchange in front of cameras after passing through courtroom security.

But Judge Alfred Deluchi did caution jurors not to talk anyone, warning their actions could be misconstrued.

Three of Laci Peterson's closest friends took the stand.

Stacey Boyers wiped tears from her eyes several times. She told the court the day after the disappearance, she came to the Peterson house and saw Scott vacuuming. When she asked him what he was doing, he replied, "I just can't keep this house clean enough."

All three friends described how Peterson would not allow any photos of himself in the volunteer center.

Lori Ellsworth, another friend of Laci, when asked the defense, admitted that she invited Amber Frey, Scott Peterson's former girlfriend, to spend the night with her after Frey told the world about her affair.

AMBERY FREY, SCOTT PETERSON'S FMR. GIRLFRIEND: First of all... DORNIN: But it was the testimony by Peterson's former yoga teacher that riled the defense.

MARK CARDOZA, LEGAL ANALYST: A lot of what she testified to, it was the first time that the defense had heard any of that testimony. That's why you saw Geragos come out of his chair a couple times.

DORNIN: Debra Wolski told the court Laci Peterson said she was so tired she could barely walk on December 20.

Fireworks are expected when one of the lead detectives testifies today.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: Let's talk about Bill Clinton's new book, "My Life." It's been on sale for exactly -- oh, five hours and 10 minutes. Anxious buyers in New York began lining up four hours early outside of Barnes & Noble to snap up a copy. In fact, they're still there right now. A bookseller in Washington says it's like Harry Potter mania, only for adults.

The former president, in a promotional interview Sunday night on CBS, talked about his book and his impeachment.

(BEGIN VIDEO CLIP)

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: To me, that whole battle was a badge of honor. I don't see it as a great stain because it was illegitimate. On the day I die, I'll still be glad I fought them. And I'll still be glad that I beat them. And I'll still believe that it was a bogus, phony deal.

(END VIDEO CLIP)

COSTELLO: You can catch Bill Clinton's first live, primetime interview on his new book Thursday night on CNN's "LARRY KING LIVE." And the former president will take your phone calls. That comes your way at 9:00 p.m. Eastern on Thursday.

Now, our e-mail "Question of the Day": "What difference, if any, will Bill Clinton's memoir have on his legacy?" E-mail us at DAYBREAK@CNN.com. DAYBREAK@CNN.com.

The pros and cons of a higher minimum wage. What kind of impact will better pay have on the economy? We'll take a look at that this hour.

Plus, it's an international crisis in the making: three ships, eight British sailors and accusations they were in the wrong place at the wrong time.

Two diseases often diagnosed in women are now becoming much more common in men. And sleek lines, a $155,000 sticker price, and a top speed of 192 miles per hour. Are you listening, Chad? Fasten your seat belts. It's not your grandfather's kind of police car. We'll tell you who's behind the wheels.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It's 5:14 Eastern. Here's what's all-new this morning.

Russian troops have repelled rebels who were trying to seize government buildings in the southern region of Chechnya. You're looking at new pictures this morning from the scene. As many as 46 people are reporting dead in hours of heavy fighting.

Suspected Olympic Park bomber Eric Rudolph has a change of venue hearing in Alabama today. He says that he can't get a fair trial in Birmingham, where he's charged with the murder in the -- he's charged with murder, rather, in the bombing of a women's clinic.

In money news, Martha Stewart is fresh from meeting with her stockholders. She told them her conviction for lying about a stock sale should not affect her namesake company.

In culture, Whitney Houston is heading to Shanghai next month for her first concert in China. She says China is her very favorite country.

In sports, Mike Tyson has been granted a boxing license in New Jersey. But the governor says Tyson won't be allowed to fight at any state-owned or operated facilities. It's been six years since Tyson swore at a New Jersey -- swore at New Jersey regulators during a licensing hearing.

(WEATHER REPORT)

COSTELLO: Those are the headlines for you.

Now to your money. There is growing momentum for an increase in the minimum wage. Our financial news correspondent Alan Chernoff looks at how that might affect you -- even those of you who make more than the minimum.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNNfn CORRESPONDENT (voice-over): Encompass Outdoor Media pays the minimum wage to entry-level researchers: $5.15 an hour. They help the company figure out how to slap as many ads as possible on pizza boxes and coffee cups.

Owner Don Winter says he plans to hire more researchers, but many reconsider if the minimum wage goes up.

DON WINTER, ENCOMPASS OUTDOOR MEDIA: As much as I think the government is -- in this attempt is trying to be benevolent, the reality is you can create a lot more pain than positives here. There will not be as much hiring going on because the government is trying to dictate how we should hire people and at what level and at what rate.

UNIDENTIFIED FEMALE: The next president of the United States.

CHERNOFF: Democratic presidential candidate John Kerry says a boost in the minimum wage is way overdue, since inflation has been climbing as the minimum wage has been unchanged for nearly seven years.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We are today living with a minimum wage that is lower in value than its been at any time since 1949 when Harry Truman was president. That's unacceptable, that's wrong and I'm going to change that with your help.

CHERNOFF: Labor economists estimate about seven million Americans are paid at the minimum wage, the majority of them women. Another seven million or so are earning above the minimum, but less than $7 an hour, and would stand to benefit as well.

But business owners, including many restaurateurs, say it's not just the higher hourly wages, it's also the higher payroll taxes and worker compensation expenses that are tied to wages.

Academics who support Kerry argue it's the economy more than the minimum wage that affects hiring, just as it was when the minimum was lifted in 1996.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: After that minimum wage increase, the economy actually really took off, and the low-wage labor market in particular boomed in the latter 90's.

CHERNOFF (on camera): While labor and business debate the impact of a rise in the minimum wage, it is unlikely to become a major issue in the presidential election. That's because President Bush also favors a higher minimum wage, though a smaller increase than Senator Kerry. The White House says the president is willing to work with Congress to lift the wage as long as it doesn't put unreasonably pressure on job creators.

Allan Chernoff, CNN Financial News, New York.

(END VIDEOTAPE)

COSTELLO: Time now to check the overseas markets to see what may be in store for Wall Street later. For that, we head live to London and Paula Hancocks.

Good morning, Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello there.

Well, the European markets were expected to open lower, and they have opened lower. As you can see, across the board we are seeing losses on the big four bosses (ph). We're about two and a half hours into the European trading day now.

Now, the factors that investors are focusing on at the moment, those U.S. interests rates and, of course, the price of oil. Oil prices stabilizing here. Brent Crude futures just stabilizing a little bit.

Volumes, though, I should point out are fairly low on this side of the Atlantic as everyone is really waiting to see what Alan Greenspan is going to do next week and whether or not there will be a surprise that could shake those markets.

Now a quick look at what oil is doing here in London. Brent Crude futures up almost 1 percent at the moment. Now, we did have oil prices falling around 3 percent on Monday, as we had news that Iraqi exports were back on track. Now it's -- any sabotaging of Iraqi exports that is weighing on these oil markets at the moment. We also have a strike in Norway. Norway is the world's third largest oil exporter, and any strike there inevitably going to give worries of a glut in a supplier -- a supply chain.

That's the latest from here. Back to you.

COSTELLO: Thank you. Paula Hancocks reporting live for us from London this morning.

Coming up next on DAYBREAK, the heavy hitters of late night weigh in on the Clinton book buzz.

(BEGIN VIDEO CLIP)

JAY LENO, TONIGHT SHOW HOST: How many watched the Bill Clinton interview last night? Did you watch that thing? Yes. Yes. I loved when Clinton told Dan Rather that the worst day of his life was the day he told Hillary the truth. Well, he's not going to do that again, I'll tell you that.

(END VIDEO CLIP)

COSTELLO: But we want to know what your thoughts on the release of the Clinton book are. Our e-mail "Question of the Day": "What difference, if any, will Bill Clinton's memoir have on his legacy?" Will this be his rehabilitation tour?

Tell us what you think. The address, DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.

We'll be right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, HOST, "THE LATE SHOW WITH DAVID LETTERMAN": Tomorrow is a big day. Bill Clinton's autobiography, his memoir is being published. It's 900 pages long. It's -- listen to this: It's actually longer than the last Harry Potter book. Were you aware of that? And both of them, I believe, were stories about a boy and his wand.

(END VIDEO CLIP)

COSTELLO: And you thought we couldn't say it on TV. But David Letterman did.

MYERS: I said, I don't think we can play that one. But, oh well, we did.

Did you watch the interview with Dan Rather?

COSTELLO: I certainly did.

MYERS: I did too. I was surprising at a few of the things he said, but you actually mentioned it yesterday, that you think this is one of many books he's going to write. So he's not going to want to give it all away in the first book.

COSTELLO: Well, he wanted to write two separate books. One, you know, about his personal life and growing up, and one about his days as president. But the publisher convinced him to put it all in one book, and look at what they got: 900 pages. So I don't know if he'll be writing another book.

But the book is selling so well, maybe he will.

MYERS: And I saw -- I think it was overstock.com -- and I've never used this site, so don't -- I'm not -- don't -- I'm not even sure that it works, but I think it does -- $18, $18 for the book. That's half price.

COSTELLO: It's on sale?

MYERS: It's half price. And Amazon.com has it for $21.

COSTELLO: You know the wacky thing? In New York City, there is a line right now - we're going to head there live a little bit later on DAYBREAK. There's a line...

MYERS: Is this it right here?

COSTELLO: This is from earlier.

MYERS: Well, earlier today. But yes, but...

COSTELLO: But the line is still there at this hour. People are actually sleeping on cots because President Clinton is going to be there for a book signing later today.

MYERS: OK. Today.

COSTELLO: They're waiting for him. It's just crazy. It's like he's a rock star. It's bizarre.

MYERS: From what I understand, there's a lot about his days as a young child, a lot about Arkansas, a lot about governor and not as much as maybe everybody would like about being president, about all those little details.

COSTELLO: All those little things that we really want to know, and the book's got...

MYERS: Exactly. Not in there.

COSTELLO: And by the way, the book's gotten really bad reviews.

MYERS: Has it?

COSTELLO: Yes, it's supposed to be really, really boring.

MYERS: Well, it's something you can take to the beach with you this weekend.

COSTELLO: Something you can take the beach.

MYERS: (UNINTELLIGIBLE) sit on there...

COSTELLO: We want your e-mails on there. I mean, will this book tour rehabilitate Bill Clinton? Will it make any difference to his legacy? DAYBREAK@CNN.com. That's DAYBREAK@cnn.com.

And by the way, President Clinton's first live primetime interview will be right here on CNN's "LARRY KING LIVE." He's going to take phone calls. President Clinton, that is.

MYERS: That's right.

COSTELLO: I guess Larry will too.

MYERS: Of course.

COSTELLO: So don't miss it. That begins Thursday night at 9:00 Eastern Time. That's in the p.m.

Time for our DAYBREAK "Eye Opener" right now.

Last week we told you about a group trying to win a radio station contest by continuously riding a roller coaster. Well, they're still at it. Three of the original 36 riders remain on the Wild Fang roller coaster. They have completed more than 1,300 up, down and around during the past eight days. It ends when there's only one contestant remaining. Wow.

The fallout is coming from an incident at an Atlanta-area jail. Listen to this: several employees of the Fulton County Sheriff's Department are facing disciplinary action after a rapper named Tea Eye filmed a music video at the county jail last week. Investigators are trying to find out who authorized the project. A female prisoner at the jail escaped while the video was being shot, but officials say the escape is not related to the video.

Success for SpaceShipOne. The craft made it to sub-orbit, more than 62 miles above Earth to become the first commercial manned space flight. The air craft landed safely in the Mojave Desert after the 90-minute flight. SpaceShipOne's creator admits a malfunction caused the plane to miss its re-entry point by 22 miles.

Here's what's all new in the next half-hour of DAYBREAK:

Put your pedal to the metal, but not in Italy. Later his hour, how playing a little fast and loose traffic laws could land you behind bars.

Osteoporosis, breast cancer -- they're not just women's problems anymore. Some surprising men's health issues ahead.

And officials are trying to diffuse a growing international incident. Some British servicemen face charges in Iran. We'll get the latest for in a live report.

This is DAYBREAK for a Tuesday.

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Aired June 22, 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: Some British sailors are in hot water with Iran.
It is Tuesday, June 22. This is DAYBREAK.

And good morning to you. From the CNN global headquarters in Atlanta, I'm Carol Costello. Let me bring you up to date with the latest headlines now.

Iran says it will prosecute eight armed British sailors for illegally entering Iranian waters. The crewmen were detained while in a main (ph) waterway that divides Iraq and Iran near the Persian Gulf. Britain says the sailors were delivering a boat to Iraq's new patrol service.

At least 40 people were killed during fierce fighting in the Ingushetia region of Russia. Chechen rebels are suspected of launching the attacks. We'll have a live report for you coming up in a few minutes.

In money news, gas prices have fallen for the fourth straight week. The average price of a gallon regular unleaded stands at $1.93. Of course, that's still 44 cents higher than it cost a year ago.

In culture, did you ever wonder what Beyonce smells like? I know you have. Tommy Hilfiger will unveil a new fragrance this fall that's supposed to capture her spirit. It'll be called "True Star."

In sports, 47-year-old Martina Navratilova was victorious in her first round match at Wimbledon. The nine-time Wimbledon champion lost just one game en route to her win over 24-year-old Catalina Castano. Navratilova is the oldest woman to win at Wimbledon since 1922 -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Nice pronouncer on Wimbledon, too.

COSTELLO: Thank you. I did the "B" sound. I made sure.

MYERS: Exactly, because so many people, as like -- as I just said, Wimble-ton. And it's not.

Good morning, everybody. Seeing the rain battering Amarillo yesterday. Places out to the north and west of Amarillo, over eight inches of rain. And obviously, this is not any fun. You can see the damage to the roof of that house from the hailstones. Some stones out there, West Texas, as big as baseballs yesterday.

(WEATHER REPORT)

COSTELLO: Looks like a diplomatic rift is developing between Iran and Britain this morning. Iran's state-run TV says Iran will prosecute eight British sailors for illegally entering Iran's territorial waters. Iran detained the sailors and impounded their patrol boats yesterday. The British government is demanding answers from Tehran. We'll have a live report for you from London at the half-hour.

Turning now to the prisoner-abuse scandal and the woman pictures in some of the disturbing photos from Abu Ghraib, a preliminary hearing for Private First Class Lynndie England has now been rescheduled. An attorney says it's been pushed back to next month partly because one member of her defense team has left the case. England faces numerous charges, including assault against Iraqi detainees.

Allegations of prisoner abuse at Guantanamo Bay, Cuba, are also under investigation. Now a memo that's surfaced that suggests Defense Secretary Rumsfeld signed off on questionable tactics.

CNN's Jamie McIntyre has more for you.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): It was October of 2002 and at the Guantanamo Bay Detention Facility, U.S. interrogators desperately wanted information from an al Qaeda detainee believed to know about an upcoming attack. The Pentagon signed off on a "get tough" approach.

Sources say the memos will show Defense Secretary Donald Rumsfeld approved a series of more aggressive interrogation techniques for use against one prisoner, Mohammed al-Kahtani, a Saudi, the so-called 20th hijacker who was supposed to be on one of the September 11th planes.

Among the techniques, water boarding in which the subject is strapped down and dunked in water or otherwise made to feel he's going to drown.

But the Pentagon says the water-boarding tactic was never used and that in January, Rumsfeld rescinded his approval in the face of objections from some of his own lawyers.

Instead, Kahtani was subjected to 20-hour interrogation sessions, given only MREs to eat, and forcibly shaved.

Just last week, Rumsfeld insisted no techniques he approved constituted torture.

DONALD RUMSFELD, DEFENSE SECRETARY: That word gets used by some people in a way that is fair from their standpoint, but doesn't fit a dictionary definition.

MCINTYRE: Human rights advocates disagree, particularly with regards to water boarding.

ELISA MASSIMINO, HUMAN RIGHTS FIRST: Water boarding fits the international and domestic definition of torture and, if the administration claims it's necessary to use it, then they ought to go to Congress and ask Congress to change the law.

MCINTYRE (on camera): Up until now, the Pentagon has refused to disclose exactly what interrogation techniques were employed at Guantanamo Bay, except to insist that they did now violate the Geneva Conventions. With the release of all the relevant memos this week, people will be able to judge for themselves.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: South Korea says it doesn't know if a Korean kidnapped in Iraq is still alive. The kidnappers had threatened to behead the man in 24 hours if South Korea didn't back away from plans to send 3,000 more troops to Iraq. Seoul rejected that demand. The deadline passed last night with no news of this man's fate.

Well, this won't come as any surprise to you, but at least it will be official. The State Department is expected to announce revised figures showing a big jump in the number of terror victims worldwide last year. Comes after the government admitted its initial report mistakenly low-balled the number of attacks. According to USA Today, the report is expected to show a dramatic increase in both the number of the deaths and casualties in terrorist attacks. But the paper also says the revised report shows that international cooperation and a heightened awareness of the terror threat are bringing positive results.

To Russia now, where government troops and rebels have been battling it out in three towns. The number of dead and wounded are reportedly in the dozens. It happened in a southern region of Chechnya.

Our Moscow bureau chief, Jill Dougherty, joins us live with more details.

Hello, Jill.

JILL DOUGHERTY, CNN MOSCOW BUREAU CHIEF: Hello, Carol.

Well, it happened in these very small republic of Ingushetia. That's right on the border with Chechnya, and in fact it's a place where there are a lot of refugees who have come out from Chechnya trying to get away from the fighting.

But the fighting followed them, and the way it's explained by the Russian officials -- they say that about 100 rebel fighters made their way from Chechnya and from other regions into that republic, and then began to attack government buildings. And the fighting, as we heard from people on the phone throughout the night, was very, very intense. There was -- at this point we believe 46 people were killed, and that included both civilians and military. Buildings were set on fire, and then finally the Interior Ministry forces were able to fight back and push them away. And at this point, they say they were not able to get any buildings -- Carol.

COSTELLO: How is the Russian government fighting back? Can they do anything?

DOUGHERTY: Well, they've been attempting to, of course, carry out military activities with Chechnya itself, and have been claiming that things are getting more normal, things are getting back to normal.

But the problem is, this would be an indication of how some of that violence is spreading from outside of Chechnya, going into other regions outside of Chechnya. It's a worrisome thing, and although they are trying to, in effect, downplay it, saying there were only 100 fighters, it is. A lot of questions are being asked, how those fighters could get in there and begin the mayhem that they carried out.

COSTELLO: Jill Dougherty reporting live from Moscow this morning. Thank you.

Now to the Scott Peterson trial. Several of Laci Peterson's friends took the stand, and their testimony contradicted some of the events surrounding her disappearance. But as CNN's Rusty Dornin reports from Redwood City, California, the day started with a decision on jury misconduct.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Juror No. 5 stays. The judge says there was no misconduct on the part of that juror, or Laci Peterson's brother, Brent Rocha. The two bumped into one another last Thursday and had a brief exchange in front of cameras after passing through courtroom security.

But Judge Alfred Deluchi did caution jurors not to talk anyone, warning their actions could be misconstrued.

Three of Laci Peterson's closest friends took the stand.

Stacey Boyers wiped tears from her eyes several times. She told the court the day after the disappearance, she came to the Peterson house and saw Scott vacuuming. When she asked him what he was doing, he replied, "I just can't keep this house clean enough."

All three friends described how Peterson would not allow any photos of himself in the volunteer center.

Lori Ellsworth, another friend of Laci, when asked the defense, admitted that she invited Amber Frey, Scott Peterson's former girlfriend, to spend the night with her after Frey told the world about her affair.

AMBERY FREY, SCOTT PETERSON'S FMR. GIRLFRIEND: First of all... DORNIN: But it was the testimony by Peterson's former yoga teacher that riled the defense.

MARK CARDOZA, LEGAL ANALYST: A lot of what she testified to, it was the first time that the defense had heard any of that testimony. That's why you saw Geragos come out of his chair a couple times.

DORNIN: Debra Wolski told the court Laci Peterson said she was so tired she could barely walk on December 20.

Fireworks are expected when one of the lead detectives testifies today.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: Let's talk about Bill Clinton's new book, "My Life." It's been on sale for exactly -- oh, five hours and 10 minutes. Anxious buyers in New York began lining up four hours early outside of Barnes & Noble to snap up a copy. In fact, they're still there right now. A bookseller in Washington says it's like Harry Potter mania, only for adults.

The former president, in a promotional interview Sunday night on CBS, talked about his book and his impeachment.

(BEGIN VIDEO CLIP)

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: To me, that whole battle was a badge of honor. I don't see it as a great stain because it was illegitimate. On the day I die, I'll still be glad I fought them. And I'll still be glad that I beat them. And I'll still believe that it was a bogus, phony deal.

(END VIDEO CLIP)

COSTELLO: You can catch Bill Clinton's first live, primetime interview on his new book Thursday night on CNN's "LARRY KING LIVE." And the former president will take your phone calls. That comes your way at 9:00 p.m. Eastern on Thursday.

Now, our e-mail "Question of the Day": "What difference, if any, will Bill Clinton's memoir have on his legacy?" E-mail us at DAYBREAK@CNN.com. DAYBREAK@CNN.com.

The pros and cons of a higher minimum wage. What kind of impact will better pay have on the economy? We'll take a look at that this hour.

Plus, it's an international crisis in the making: three ships, eight British sailors and accusations they were in the wrong place at the wrong time.

Two diseases often diagnosed in women are now becoming much more common in men. And sleek lines, a $155,000 sticker price, and a top speed of 192 miles per hour. Are you listening, Chad? Fasten your seat belts. It's not your grandfather's kind of police car. We'll tell you who's behind the wheels.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It's 5:14 Eastern. Here's what's all-new this morning.

Russian troops have repelled rebels who were trying to seize government buildings in the southern region of Chechnya. You're looking at new pictures this morning from the scene. As many as 46 people are reporting dead in hours of heavy fighting.

Suspected Olympic Park bomber Eric Rudolph has a change of venue hearing in Alabama today. He says that he can't get a fair trial in Birmingham, where he's charged with the murder in the -- he's charged with murder, rather, in the bombing of a women's clinic.

In money news, Martha Stewart is fresh from meeting with her stockholders. She told them her conviction for lying about a stock sale should not affect her namesake company.

In culture, Whitney Houston is heading to Shanghai next month for her first concert in China. She says China is her very favorite country.

In sports, Mike Tyson has been granted a boxing license in New Jersey. But the governor says Tyson won't be allowed to fight at any state-owned or operated facilities. It's been six years since Tyson swore at a New Jersey -- swore at New Jersey regulators during a licensing hearing.

(WEATHER REPORT)

COSTELLO: Those are the headlines for you.

Now to your money. There is growing momentum for an increase in the minimum wage. Our financial news correspondent Alan Chernoff looks at how that might affect you -- even those of you who make more than the minimum.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNNfn CORRESPONDENT (voice-over): Encompass Outdoor Media pays the minimum wage to entry-level researchers: $5.15 an hour. They help the company figure out how to slap as many ads as possible on pizza boxes and coffee cups.

Owner Don Winter says he plans to hire more researchers, but many reconsider if the minimum wage goes up.

DON WINTER, ENCOMPASS OUTDOOR MEDIA: As much as I think the government is -- in this attempt is trying to be benevolent, the reality is you can create a lot more pain than positives here. There will not be as much hiring going on because the government is trying to dictate how we should hire people and at what level and at what rate.

UNIDENTIFIED FEMALE: The next president of the United States.

CHERNOFF: Democratic presidential candidate John Kerry says a boost in the minimum wage is way overdue, since inflation has been climbing as the minimum wage has been unchanged for nearly seven years.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We are today living with a minimum wage that is lower in value than its been at any time since 1949 when Harry Truman was president. That's unacceptable, that's wrong and I'm going to change that with your help.

CHERNOFF: Labor economists estimate about seven million Americans are paid at the minimum wage, the majority of them women. Another seven million or so are earning above the minimum, but less than $7 an hour, and would stand to benefit as well.

But business owners, including many restaurateurs, say it's not just the higher hourly wages, it's also the higher payroll taxes and worker compensation expenses that are tied to wages.

Academics who support Kerry argue it's the economy more than the minimum wage that affects hiring, just as it was when the minimum was lifted in 1996.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: After that minimum wage increase, the economy actually really took off, and the low-wage labor market in particular boomed in the latter 90's.

CHERNOFF (on camera): While labor and business debate the impact of a rise in the minimum wage, it is unlikely to become a major issue in the presidential election. That's because President Bush also favors a higher minimum wage, though a smaller increase than Senator Kerry. The White House says the president is willing to work with Congress to lift the wage as long as it doesn't put unreasonably pressure on job creators.

Allan Chernoff, CNN Financial News, New York.

(END VIDEOTAPE)

COSTELLO: Time now to check the overseas markets to see what may be in store for Wall Street later. For that, we head live to London and Paula Hancocks.

Good morning, Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello there.

Well, the European markets were expected to open lower, and they have opened lower. As you can see, across the board we are seeing losses on the big four bosses (ph). We're about two and a half hours into the European trading day now.

Now, the factors that investors are focusing on at the moment, those U.S. interests rates and, of course, the price of oil. Oil prices stabilizing here. Brent Crude futures just stabilizing a little bit.

Volumes, though, I should point out are fairly low on this side of the Atlantic as everyone is really waiting to see what Alan Greenspan is going to do next week and whether or not there will be a surprise that could shake those markets.

Now a quick look at what oil is doing here in London. Brent Crude futures up almost 1 percent at the moment. Now, we did have oil prices falling around 3 percent on Monday, as we had news that Iraqi exports were back on track. Now it's -- any sabotaging of Iraqi exports that is weighing on these oil markets at the moment. We also have a strike in Norway. Norway is the world's third largest oil exporter, and any strike there inevitably going to give worries of a glut in a supplier -- a supply chain.

That's the latest from here. Back to you.

COSTELLO: Thank you. Paula Hancocks reporting live for us from London this morning.

Coming up next on DAYBREAK, the heavy hitters of late night weigh in on the Clinton book buzz.

(BEGIN VIDEO CLIP)

JAY LENO, TONIGHT SHOW HOST: How many watched the Bill Clinton interview last night? Did you watch that thing? Yes. Yes. I loved when Clinton told Dan Rather that the worst day of his life was the day he told Hillary the truth. Well, he's not going to do that again, I'll tell you that.

(END VIDEO CLIP)

COSTELLO: But we want to know what your thoughts on the release of the Clinton book are. Our e-mail "Question of the Day": "What difference, if any, will Bill Clinton's memoir have on his legacy?" Will this be his rehabilitation tour?

Tell us what you think. The address, DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.

We'll be right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, HOST, "THE LATE SHOW WITH DAVID LETTERMAN": Tomorrow is a big day. Bill Clinton's autobiography, his memoir is being published. It's 900 pages long. It's -- listen to this: It's actually longer than the last Harry Potter book. Were you aware of that? And both of them, I believe, were stories about a boy and his wand.

(END VIDEO CLIP)

COSTELLO: And you thought we couldn't say it on TV. But David Letterman did.

MYERS: I said, I don't think we can play that one. But, oh well, we did.

Did you watch the interview with Dan Rather?

COSTELLO: I certainly did.

MYERS: I did too. I was surprising at a few of the things he said, but you actually mentioned it yesterday, that you think this is one of many books he's going to write. So he's not going to want to give it all away in the first book.

COSTELLO: Well, he wanted to write two separate books. One, you know, about his personal life and growing up, and one about his days as president. But the publisher convinced him to put it all in one book, and look at what they got: 900 pages. So I don't know if he'll be writing another book.

But the book is selling so well, maybe he will.

MYERS: And I saw -- I think it was overstock.com -- and I've never used this site, so don't -- I'm not -- don't -- I'm not even sure that it works, but I think it does -- $18, $18 for the book. That's half price.

COSTELLO: It's on sale?

MYERS: It's half price. And Amazon.com has it for $21.

COSTELLO: You know the wacky thing? In New York City, there is a line right now - we're going to head there live a little bit later on DAYBREAK. There's a line...

MYERS: Is this it right here?

COSTELLO: This is from earlier.

MYERS: Well, earlier today. But yes, but...

COSTELLO: But the line is still there at this hour. People are actually sleeping on cots because President Clinton is going to be there for a book signing later today.

MYERS: OK. Today.

COSTELLO: They're waiting for him. It's just crazy. It's like he's a rock star. It's bizarre.

MYERS: From what I understand, there's a lot about his days as a young child, a lot about Arkansas, a lot about governor and not as much as maybe everybody would like about being president, about all those little details.

COSTELLO: All those little things that we really want to know, and the book's got...

MYERS: Exactly. Not in there.

COSTELLO: And by the way, the book's gotten really bad reviews.

MYERS: Has it?

COSTELLO: Yes, it's supposed to be really, really boring.

MYERS: Well, it's something you can take to the beach with you this weekend.

COSTELLO: Something you can take the beach.

MYERS: (UNINTELLIGIBLE) sit on there...

COSTELLO: We want your e-mails on there. I mean, will this book tour rehabilitate Bill Clinton? Will it make any difference to his legacy? DAYBREAK@CNN.com. That's DAYBREAK@cnn.com.

And by the way, President Clinton's first live primetime interview will be right here on CNN's "LARRY KING LIVE." He's going to take phone calls. President Clinton, that is.

MYERS: That's right.

COSTELLO: I guess Larry will too.

MYERS: Of course.

COSTELLO: So don't miss it. That begins Thursday night at 9:00 Eastern Time. That's in the p.m.

Time for our DAYBREAK "Eye Opener" right now.

Last week we told you about a group trying to win a radio station contest by continuously riding a roller coaster. Well, they're still at it. Three of the original 36 riders remain on the Wild Fang roller coaster. They have completed more than 1,300 up, down and around during the past eight days. It ends when there's only one contestant remaining. Wow.

The fallout is coming from an incident at an Atlanta-area jail. Listen to this: several employees of the Fulton County Sheriff's Department are facing disciplinary action after a rapper named Tea Eye filmed a music video at the county jail last week. Investigators are trying to find out who authorized the project. A female prisoner at the jail escaped while the video was being shot, but officials say the escape is not related to the video.

Success for SpaceShipOne. The craft made it to sub-orbit, more than 62 miles above Earth to become the first commercial manned space flight. The air craft landed safely in the Mojave Desert after the 90-minute flight. SpaceShipOne's creator admits a malfunction caused the plane to miss its re-entry point by 22 miles.

Here's what's all new in the next half-hour of DAYBREAK:

Put your pedal to the metal, but not in Italy. Later his hour, how playing a little fast and loose traffic laws could land you behind bars.

Osteoporosis, breast cancer -- they're not just women's problems anymore. Some surprising men's health issues ahead.

And officials are trying to diffuse a growing international incident. Some British servicemen face charges in Iran. We'll get the latest for in a live report.

This is DAYBREAK for a Tuesday.

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