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CNN Live At Daybreak

Voice on Audiotape Vows To Assassinate Iraqi Leader; N. Korea to U.S.: Let's Make a Deal

Aired June 23, 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: Is Iyad Allawi, the interim prime minister of Iraq, a marked man threatened with assassination from this man, al-Zarqawi?
It is Wednesday, June 23. This is DAYBREAK.

And good morning to you. From the CNN global headquarters, I'm Carol Costello. Here are the latest headlines for you right now.

The eight British sailors and Marines being held Iran could be released today. They were arrested after allegedly crossing into Iranian waters. Iranian state media reports they will be released because they crossed the border unintentionally.

Multinational talks get under way today in Beijing over North Korea's nuclear program. Delegates from six nations, including the United States, are set to meet for four days. Two previous rounds of talks have not produced any breakthroughs.

In money news, a sex-discrimination lawsuit against Wal-Mart is not a class-action suit. That means more than a million and a half former and current female employees can be included in the pay-equity suit.

(SINGING)

COSTELLO: In culture, an oldie but goodie. "Somewhere Over the Rainbow," from 1939's "The Wizard of Oz" has been named the best song from a movie in voting by the entertainment industry. "As Time Goes By" from "Casablanca" is No. 2.

In sports, two-time defending Wimbledon champion Serena Williams breezed through her first-round match. Williams has won 15 straight matches in the Grand Slam tournament -- Chad.

(WEATHER REPORT)

COSTELLO: We've been working this morning on a new audiotape that's been airing on al-Jazeera television. On the audiotape, a suspected terrorist, maybe one of the terrorists responsible for the beheading of a South Korean in Iraq.

We want to bring in our senior international editor, David Clinch, now to help us sort through this.

Is this Zarqawi on this audiotape? DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: Well, so far what we can tell you - this audiotape playing on a Web site that has played many audiotapes of Zarqawi in the past and video from his group, some of these horrific videos of beheadings and other things - our experts listening to it tell us that it is the voice of Zarqawi. But I would caution that the CIA and their expertise in machinery for checking voices has not yet been applied to this. We will be asking the CIA and others during the day whether their assessment is that it is Zarqawi. But...

COSTELLO: Does the voice on the audiotape specifically refer to the beheading of this South Korean?

CLINCH: It does not refer to the beheading of the South Korean, and that is interesting. That is an interesting point.

What the voice claiming to be Zarqawi does do is go through a list of what he says his group will continue to do: continue to attack U.S. troops in Iraq, continue to attack the Iraqi security forces. But the headline, the most interesting and specific threat is a threat to kill the new Iraqi interim prime minister, Iyad Allawi. Now, of course, that fits into his general and continuing threats to attack this Iraqi interim government. It's not new that he's threatened to attack anybody associated with the coalition or this interim government.

But he's very specific in his threat to kill Allawi. This is Allawi we're seeing here, some file of him when the government was announced. The way in which he voices this threat to Allwai is to said, "Be warned. We killed Izzadine Saleem," who, if you remember, a few months ago, was the acting head of the Iraqi Governing Council at the time, was killed in an attack blamed by the U.S. on Zarqawi's group. Zarqawi, or the voice claiming to be Zarqawi says today, "We killed Izzadine Saleem. We will do the same to you."

COSTELLO: Any word from Allawi's (UNINTELLIGIBLE)

CLINCH: We have not heard from him; that's an excellent point. We want to give him an opportunity to react to this. We have not yet heard from Allawi today.

Of course, the difficult, awkward, terrible position that we're in in these cases is always that in reporting this, we want to get the information out. But on the other hand, you're left with this terrible feeling, in some ways, of amplifying the voice of this terrorist, putting out this message. We will try to keep it as much as we can to what we know, and that is that he's making this threat, and then seek a reaction from the Iraqi Governing Council during the day.

COSTELLO: Where is this audio playing? Is al-Jazeera playing this audiotape right now?

CLINCH: The Arab networks have been playing it. But originated on a Web site that we and others monitor and have been continuously monitoring not only for audiotape, but, of course, videotape, including videotape that we believe is available now of the beheading of this South Korean.

But as you say, Zarqawi or the voice claiming to be him, did not mention that killing. Now, the U.S. has in the past blamed Zarqawi himself for the killing of Nicholas Berg, the American in Iraq. They have yet to assess whether Zarqawi himself was responsible for the killing of that South Korean.

COSTELLO: We'll have much more on this throughout the two hours of DAYBREAK.

Thank you, David. We appreciate it.

CNN takes the pulse of the world this week, as the countdown to the handover of Iraq nears. Join us at 1 p.m. Eastern tomorrow to find out the European view. You can get a check of the American pulse Friday, same time, 1 p.m. Eastern.

The Bush administration is fighting back. The White House has now put out a memo showing President Bush accepted the Justice Department's advice that the Geneva Conventions did not protect al Qaeda and Taliban prisoners, but that he ordered they be treated humanely anyway.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We do not condone torture. I have never ordered torture. I will never order torture. The values of this country are such that torture is not a part of our soul and our being.

(END VIDEO CLIP)

COSTELLO: Pentagon officials insist any prisoner abuse was done by a small number of military police acting on their own and not at the direction of the president.

What were the interrogation orders from the Pentagon and the Justice Department though? Conflicting memos have been circulating over what was deemed to be acceptable behavior at the Guantanamo Bay detention center.

CNN's senior Pentagon correspondent, Jamie McIntyre, sorts it out for you.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): The documents detail how U.S. commanders complained in October of 2002 that they were encountering advanced resistance from detainees at Guantanamo Bay. They asked permission to use more aggressive interrogation tactics to break them down, a request that eventually went to Defense Secretary Donald Rumsfeld.

The tactics included convincing the detainee that death or severe pain could be imminent, exposure to cold weather or water, the use of water to induce a perception of suffocating, also known as water boarding.

But Rumsfeld approved only one technique, mild noninjurious physical contact, defined as grabbing, poking in the chest, or light pushing. Rumsfeld insists nothing he authorized was torture or inhumane.

DONALD RUMSFELD, DEFENSE SECRETARY: The implication that's out there is the United States government is engaging in torture as a matter of policy and that's not true.

MCINTYRE: Rumsfeld did approve subjecting detainees at Guantanamo to yelling, isolation, 20-hour marathon interrogations, forced shaving and standing for four hours straight. And while he also approved other more controversial techniques, including hooding, stress positions, removal of clothing and the use of dogs to induce stress, the Pentagon insists those tactics were never used.

ELISA MASSIMINO, HUMAN RIGHTS FIRST: I think we're beyond a situation where we can be satisfied with the answer, "trust us, it's never been used." In fact, it appears that there are some in the military chain of command who were unaware that some of this misconduct amounting to torture was engaged in at Abu Ghraib.

MCINTYRE: A Pentagon official Monday inaccurately told CNN that Rumsfeld had approved water boarding. But even though the documents show Rumsfeld rejected it, they do indicate it could be approved in the future.

The Pentagon general counsel writes in a December 2, 2002 memo, signed by Rumsfeld: "While all techniques may be legally available, we believe a blanket approval is not warranted at this time."

Rumsfeld, who works at a stand-up desk, scrawled at the bottom of the memo: "However, I stand for eight to 10 hours a day. Why is standing limited to four hours?"

(on camera): A month later, in January of 2003, Rumsfeld replaced those guidelines with 24 new, approved interrogation techniques, most of them straight out of the Army Field Manual. But four techniques, including playing good cop-bad cop, removing incentives, insulting the prisoners or isolating them, required that Rumsfeld be personally notified before they were implied.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: Those eight British sailors and Marines being held in Iran are expected to be released today. Iran captured the British troops after they allegedly crossed into Iranian territorial waters along the Iran-Iraq border. Three ships were also confiscated. Iranian state media reports that since the troops did not intentionally cross the border, they would likely escape prosecution and be released.

CNN's Matthew Chance will join us from London live with more on this story. That will come your way at the bottom of the hour.

The group claiming to have beheaded a South Korean hostage in Iraq claims to be the same group that killed U.S. hostage Nicholas Berg. And it says it's linked to Abu Musab al-Zarqawi.

Our Seoul bureau chief, Sohn Jie-Ae, has reaction to the killing from South Korea.

Good morning.

(BEGIN VIDEOTAPE)

SOHN JIE-AE, CNN SEOUL BUREAU CHIEF (voice-over): The news of Kim Sun-il's death devastated his family in the South Korean city of Pusan. His parents and sisters wept in front of a small, makeshift altar adorned with Kim's photograph.

He was an Arabic speaker and devout Christian who had worked in Iraq for a year as a translator for a South Korean firm supplying goods to the U.S. military. Monday night, South Korean news reports had said Kim was seen alive and that negotiations were under way for his safe release.

But hours later, South Korea's Foreign Minister announced that the U.S. military in Iraq had reported finding Kim's body on the road from Baghdad to Fallujah.

After an emergency meeting of the National Security Council, the government released a statement strongly condemning the killing as "an inhumane act of terror." And it said it will strengthen safety measures to prevent similar incidents and seek an early withdrawal of all South Korean civilians from Iraq.

But the government reiterated its position that Seoul will push ahead with plans to send an additional 3,000 troops to Iraq. The statement said the deployment was for reconstruction and humanitarian aid. The kidnappers had demanded South Korea not send further troops.

South Korean civic groups had also called for the government to scrap its deployment plans, a demand that many believe will become stronger with the brutal killing of Kim Sun-il.

(END VIDEOTAPE)

SOHN: Now, there are going to be protesters gathering in the streets in just a short while from now. They're going to also be there calling for the South Korean government to scrap their plans to deploy more troops to Iraq. They're going to raise their voices in the hopes that they can actually change the government's mind, Carol.

COSTELLO: And so far, South Korea -- the South Korean government, at least, is not changing its mind, correct?

I don't think Sohn Jie-Ae could hear me, but that was Sohn Jie-Ae reporting live from South Korea this morning. We'll have much more for you through the two hours of DAYBREAK. For more on the tragic killing of that South Korea hostage and other developments in Iraq, you can also log onto our Web site, cnn.com.

Just ahead on DAYBREAK, is a nuclear-powered breakthrough on the table? The U.S. says it's time to make a deal to keep North Korea's nuclear ambitions in check. We'll get the latest on those negotiations.

And employees get the green light to take on the nation's largest retailer. We'll tell you why some women of Wal-Mart are saying, "Enough is enough."

Also ahead, a live report on the status of those British troops being held by Iran.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Diplomats are meeting in Beijing today to once again try to convince North Korea to freeze its nuclear weapons programs. This will be round three of the six-nation talks, but so far North Korea is doing exactly the opposite of what's being asked.

CNN's Mike Chinoy outlines what's at stake.

(BEGIN VIDEOTAPE)

MIKE CHINOY, CNN SR. ASIA CORRESPONDENT (voice-over): Since these six-nation talks began, North Korea has increased its nuclear arsenal, and the Bush administration's strategy of isolating and confronting the regime of Kim Jong-Il has faltered.

JON WOLFSTHAL, CARNEGIE ENDOWMENT: North Korea continues to possess the capability to build, perhaps, anywhere from three to nine nuclear weapons. Their nuclear program is totally unconstrained.

CHINOY: Meanwhile, Washington's Asian's allies, Japan's Prime Minister Koizumi and South Korean President Roh Moo-hyun, have begun to pursue their own engagement with Pyongyang.

MOON CHUNG-IN, ADVISER TO SOUTH KOREAN PRESIDENT: I believe the North Korean (ph) government is very unhappy about the very rigid stance by the United States.

CHINOY: In recent weeks, the North and South Korean armed forces have discussed confidence-building measures, while Japan's Prime Minister Koizumi has held his own summit with Kim Jong-Il, who told him North Korea is eager to mend fences with Washington.

DONALD GREGG, FMR. U.S. AMB. TO S. KOREA: What the North Koreans are saying to us is we're not Iraq, we're not Libya. We have nuclear weapons. And we'd like to make a deal with you.

CHINOY: But going into these talks, the Bush administration has again insisted the North dismantle all its nuclear programs before anything else can be discussed. North Korea experts say that's not going to happen.

LEE SIGAL, NORTH KOREA EXPERT: If we know anything about North Korea, we know it's not into unconditional surrender. They've never done it; they never -- they don't respond well when they're coerced. They just counter-coerce.

CHINOY: That may explain why China's leaders, who have pressed Kim Jong-Il to join the six-nation talks, are now pressing Washington to take a more flexible line.

(END VIDEOTAPE)

CHINOY: Now Carol, as these talks got under way, there was a sign that the United States may be trying to respond to the concerns of its Asian partners. The U.S. envoy here declaring that he was bringing a new proposal to the table, apparently one involving some additional incentives for the North to give up its nuclear program.

For his part, the North Korean envoy said that if the United States ended what Pyongyang calls "the U.S. hostile policy," it would be willing to give up all its nuclear weapons. Whether that's enough to bridge the gap between the two nations, however, is far from clear -- Carol.

COSTELLO: We'll see. Mike Chinoy reporting live for us from Beijing.

Your news, money, weather and sports. It's 5:18 Eastern. Here's what's all-new this morning:

An Iranian official says the government plans to release eight British service members who were arrested for crossing Iran's territorial waters. That's according to the state-run media. The report says the men will be released sometime today.

A White House memo shows President Bush concluded that the Geneva Conventions governing the treatment of prisoners of war did not apply to al-Qaeda or Taliban. But he ordered the military to file the Geneva rules anyway.

In money news, the government's war chest is growing. The House of Representatives has passed a $470 billion bill to fund defense programs. It included $25 billion in interim funds for operations in Iraq and Afghanistan.

In culture, Supreme Court Justice Sandra Day O'Connor has been honored for her volunteer work by the American Institute for Public Service. O'Connor is the first woman to serve on the U.S. Supreme Court.

In sports, a grand slam as Nomar Garciaparra's first home run of the year, and the Boston Red Sox beat the Minnesota Twins nine to two. I don't think that Achilles' tendon is hurting him anymore, Chad.

CHAD MYERS, CNN METEOROLOGIST: Nope. Nope. He's all better now.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Wal-Mart is facing a massive class-action lawsuit that could include more than a million and a half plaintiffs. The issue is whether the nation's largest private employer systematically discriminated against its female employees.

CNN's Jen Rogers has more of the details for you.

(BEGIN VIDEOTAPE)

(BEGIN VIDEO CLIP, WAL-MART AD)

UNIDENTIFIED FEMALE: It's not easy to have a career and a family. But my job makes it a lot easier to do both.

(END VIDEO CLIP)

JEN ROGERS, CNNfn CORRESPONDENT (voice-over): Wal-Mart ads say one thing. Christine Kwapnoski tells a different story.

CHRISTINE KWAPNOSKI, WAL-MART EMPLOYEE: The first time I saw that ad I had to laugh.

ROGERS: An 18-year veteran of the world's largest retailer, Kwapnoski alleges Wal-Mart is not an ideal workplace for women.

KWAPNOSKI: I've been promoted over several times. Ended up training the male counterparts that were being promoted over me.

ROGERS: Kwapnoski, who is suing Wal-Mart along with six other women, alleges the company discriminates against women when it comes to pay, promotion and training. That lawsuit became the largest civil rights class-action case ever, according to the womens' attorney, who says size matters when you're fighting Wal-Mart.

BRAD SELIGMAN, LEAD PLAINTIFFS' ATTORNEY: It's the largest case anyone has brought against Wal-Mart. They've never faced a national class action. They've always faced local, smaller cases. This is the first time that the entire company, coast to coast, is on the line. And that really does make a difference.

ROGERS: The class certified by a federal judge in San Francisco cover ever female employee who works or worked at a Wal-Mart owned store in the United States since late 1998. That's over 1.5 million women.

Wal-Mart denies it discriminates against women, and says it has announced a new job classification and pay structure for hourly associates, which is designed to ensure internally equity and external competitiveness.

(on camera): Wal-Mart is also quick to point out that Tuesday's order is not a ruling on the merits of the case, but a decision that the suit meets the legal requirements to move forward under class- action status.

(voice-over): Wal-Mart fought class-action certification in court last fall, arguing its 3,200 stores are autonomous, acting as individual businesses with most decisions regarding pay and promotion made at the local level.

After a speech in Washington Tuesday, Wal-Mart chairman Rob Walton said the class certification is cause for concern.

ROB WALTON, WAL-MART CHAIRMAN: We believe that it's wrong and that the judge has made a mistake.

ROGERS: The company says it will appeal Tuesday's decision; no trial date has been set. Plaintiffs' attorneys say they will have no problem locating the million-plus women now part of this class, saying Wal-Mart keeps the best employment records of any company in the United States.

Jen Rogers, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

COSTELLO: "Fahrenheit 9/11" tees off on President Bush.

(BEGIN VIDEO CLIP)

MICHAEL MOORE, FILMMAKER (voice-over): With everything going wrong, he did what any of us would do. He went on vacation.

(MUSIC)

(END VIDEO CLIP)

COSTELLO: But Michael Moore is feeling the heat this morning. We'll tell you why his controversial new film is suffering a setback.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Democrats, Republican or independent, you're going to have to be over 17 if you want to see "Fahrenheit 9/11" without an adult. The Motion Picture Association of America has now denied a request to drop the film's rating from 'R' to 'PG-13.' The rating is for violent images and language. The critical documentary of President Bush opens across the country on Friday.

Chad just brought up a controversial point. He says, why are we devoting a whole block to this movie?

MYERS: Well, you know what? Actually we're -- this was supposed to be about the NC -- or the 'R' rating or the 'PG' rating and all that other kind of stuff. And we -- you've got Iraqis burned by napalm, you've got someone throwing the body of a baby into a pile of other bodies. And then also you have -- let me look at it for you...

COSTELLO: A lot of graphic images.

MYERS: The public beheading in Saudi Arabia, the first one I believe it was. And you know what? There's a lot of things that maybe a 13-year-old shouldn't see without a parent.

COSTELLO: Well, Michael Moore says he's willing to sneak in any teenager who wants to go into the movie.

MYERS: As long as he sits there with that child the whole time, go right ahead.

COSTELLO: And he has the permission of their parent. I don't know.

Anyway, but they're saying that even with an 'R' rating, there is still intense interest in this film.

MYERS: Sure.

COSTELLO: It's going to open on some 838 movie theaters across the country, which is unusual for a documentary.

MYERS: You have to realize that there's some fact, there's a little bit of fiction and there's some propaganda. And you have to be able to filter it out, I think. You know, I mean, so...

COSTELLO: But, you know, I think people are smart enough to do that.

MYERS: Yes, but is it -- is a 12-year-old?

COSTELLO: Oh, well, no, I don't think so.

MYERS: No, OK. So maybe that's -- I mean -- and Jack Pawlenty, I'll tell you what, he was the one who was all in favor of this 'R' rating. He is very happy. He said, "The system works. We're happy that it's an 'R' rating. It should be an 'R' rating. If they want to take some of that stuff out, go right ahead. Then we'll make it 'PG- 13.'"

COSTELLO: Enough said.

MYERS: All right.

COSTELLO: Thank you, Chad.

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

President Clinton is in a pickle. Well, not really -- at least not this time. But recent comments from the former president have people looking for some hidden meanings.

A tiff in Tehran may soon be over. British troops held captive could soon be set free. We're going to take you live to London to get the latest.

This is DAYBREAK for Wednesday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN FINANCIAL NEWS: The most shocking thing about TASER International lately has been the ride its share price is taking. The company is a leading manufacturer of guns that deliver a jolt of electricity to subdue attackers.

And security concerns are prompting interest stock. TASER stock price has zoomed to a 52-week high of 64 in April. Recently, it has retreated back into the $30 range.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired June 23, 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: Is Iyad Allawi, the interim prime minister of Iraq, a marked man threatened with assassination from this man, al-Zarqawi?
It is Wednesday, June 23. This is DAYBREAK.

And good morning to you. From the CNN global headquarters, I'm Carol Costello. Here are the latest headlines for you right now.

The eight British sailors and Marines being held Iran could be released today. They were arrested after allegedly crossing into Iranian waters. Iranian state media reports they will be released because they crossed the border unintentionally.

Multinational talks get under way today in Beijing over North Korea's nuclear program. Delegates from six nations, including the United States, are set to meet for four days. Two previous rounds of talks have not produced any breakthroughs.

In money news, a sex-discrimination lawsuit against Wal-Mart is not a class-action suit. That means more than a million and a half former and current female employees can be included in the pay-equity suit.

(SINGING)

COSTELLO: In culture, an oldie but goodie. "Somewhere Over the Rainbow," from 1939's "The Wizard of Oz" has been named the best song from a movie in voting by the entertainment industry. "As Time Goes By" from "Casablanca" is No. 2.

In sports, two-time defending Wimbledon champion Serena Williams breezed through her first-round match. Williams has won 15 straight matches in the Grand Slam tournament -- Chad.

(WEATHER REPORT)

COSTELLO: We've been working this morning on a new audiotape that's been airing on al-Jazeera television. On the audiotape, a suspected terrorist, maybe one of the terrorists responsible for the beheading of a South Korean in Iraq.

We want to bring in our senior international editor, David Clinch, now to help us sort through this.

Is this Zarqawi on this audiotape? DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: Well, so far what we can tell you - this audiotape playing on a Web site that has played many audiotapes of Zarqawi in the past and video from his group, some of these horrific videos of beheadings and other things - our experts listening to it tell us that it is the voice of Zarqawi. But I would caution that the CIA and their expertise in machinery for checking voices has not yet been applied to this. We will be asking the CIA and others during the day whether their assessment is that it is Zarqawi. But...

COSTELLO: Does the voice on the audiotape specifically refer to the beheading of this South Korean?

CLINCH: It does not refer to the beheading of the South Korean, and that is interesting. That is an interesting point.

What the voice claiming to be Zarqawi does do is go through a list of what he says his group will continue to do: continue to attack U.S. troops in Iraq, continue to attack the Iraqi security forces. But the headline, the most interesting and specific threat is a threat to kill the new Iraqi interim prime minister, Iyad Allawi. Now, of course, that fits into his general and continuing threats to attack this Iraqi interim government. It's not new that he's threatened to attack anybody associated with the coalition or this interim government.

But he's very specific in his threat to kill Allawi. This is Allawi we're seeing here, some file of him when the government was announced. The way in which he voices this threat to Allwai is to said, "Be warned. We killed Izzadine Saleem," who, if you remember, a few months ago, was the acting head of the Iraqi Governing Council at the time, was killed in an attack blamed by the U.S. on Zarqawi's group. Zarqawi, or the voice claiming to be Zarqawi says today, "We killed Izzadine Saleem. We will do the same to you."

COSTELLO: Any word from Allawi's (UNINTELLIGIBLE)

CLINCH: We have not heard from him; that's an excellent point. We want to give him an opportunity to react to this. We have not yet heard from Allawi today.

Of course, the difficult, awkward, terrible position that we're in in these cases is always that in reporting this, we want to get the information out. But on the other hand, you're left with this terrible feeling, in some ways, of amplifying the voice of this terrorist, putting out this message. We will try to keep it as much as we can to what we know, and that is that he's making this threat, and then seek a reaction from the Iraqi Governing Council during the day.

COSTELLO: Where is this audio playing? Is al-Jazeera playing this audiotape right now?

CLINCH: The Arab networks have been playing it. But originated on a Web site that we and others monitor and have been continuously monitoring not only for audiotape, but, of course, videotape, including videotape that we believe is available now of the beheading of this South Korean.

But as you say, Zarqawi or the voice claiming to be him, did not mention that killing. Now, the U.S. has in the past blamed Zarqawi himself for the killing of Nicholas Berg, the American in Iraq. They have yet to assess whether Zarqawi himself was responsible for the killing of that South Korean.

COSTELLO: We'll have much more on this throughout the two hours of DAYBREAK.

Thank you, David. We appreciate it.

CNN takes the pulse of the world this week, as the countdown to the handover of Iraq nears. Join us at 1 p.m. Eastern tomorrow to find out the European view. You can get a check of the American pulse Friday, same time, 1 p.m. Eastern.

The Bush administration is fighting back. The White House has now put out a memo showing President Bush accepted the Justice Department's advice that the Geneva Conventions did not protect al Qaeda and Taliban prisoners, but that he ordered they be treated humanely anyway.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We do not condone torture. I have never ordered torture. I will never order torture. The values of this country are such that torture is not a part of our soul and our being.

(END VIDEO CLIP)

COSTELLO: Pentagon officials insist any prisoner abuse was done by a small number of military police acting on their own and not at the direction of the president.

What were the interrogation orders from the Pentagon and the Justice Department though? Conflicting memos have been circulating over what was deemed to be acceptable behavior at the Guantanamo Bay detention center.

CNN's senior Pentagon correspondent, Jamie McIntyre, sorts it out for you.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): The documents detail how U.S. commanders complained in October of 2002 that they were encountering advanced resistance from detainees at Guantanamo Bay. They asked permission to use more aggressive interrogation tactics to break them down, a request that eventually went to Defense Secretary Donald Rumsfeld.

The tactics included convincing the detainee that death or severe pain could be imminent, exposure to cold weather or water, the use of water to induce a perception of suffocating, also known as water boarding.

But Rumsfeld approved only one technique, mild noninjurious physical contact, defined as grabbing, poking in the chest, or light pushing. Rumsfeld insists nothing he authorized was torture or inhumane.

DONALD RUMSFELD, DEFENSE SECRETARY: The implication that's out there is the United States government is engaging in torture as a matter of policy and that's not true.

MCINTYRE: Rumsfeld did approve subjecting detainees at Guantanamo to yelling, isolation, 20-hour marathon interrogations, forced shaving and standing for four hours straight. And while he also approved other more controversial techniques, including hooding, stress positions, removal of clothing and the use of dogs to induce stress, the Pentagon insists those tactics were never used.

ELISA MASSIMINO, HUMAN RIGHTS FIRST: I think we're beyond a situation where we can be satisfied with the answer, "trust us, it's never been used." In fact, it appears that there are some in the military chain of command who were unaware that some of this misconduct amounting to torture was engaged in at Abu Ghraib.

MCINTYRE: A Pentagon official Monday inaccurately told CNN that Rumsfeld had approved water boarding. But even though the documents show Rumsfeld rejected it, they do indicate it could be approved in the future.

The Pentagon general counsel writes in a December 2, 2002 memo, signed by Rumsfeld: "While all techniques may be legally available, we believe a blanket approval is not warranted at this time."

Rumsfeld, who works at a stand-up desk, scrawled at the bottom of the memo: "However, I stand for eight to 10 hours a day. Why is standing limited to four hours?"

(on camera): A month later, in January of 2003, Rumsfeld replaced those guidelines with 24 new, approved interrogation techniques, most of them straight out of the Army Field Manual. But four techniques, including playing good cop-bad cop, removing incentives, insulting the prisoners or isolating them, required that Rumsfeld be personally notified before they were implied.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: Those eight British sailors and Marines being held in Iran are expected to be released today. Iran captured the British troops after they allegedly crossed into Iranian territorial waters along the Iran-Iraq border. Three ships were also confiscated. Iranian state media reports that since the troops did not intentionally cross the border, they would likely escape prosecution and be released.

CNN's Matthew Chance will join us from London live with more on this story. That will come your way at the bottom of the hour.

The group claiming to have beheaded a South Korean hostage in Iraq claims to be the same group that killed U.S. hostage Nicholas Berg. And it says it's linked to Abu Musab al-Zarqawi.

Our Seoul bureau chief, Sohn Jie-Ae, has reaction to the killing from South Korea.

Good morning.

(BEGIN VIDEOTAPE)

SOHN JIE-AE, CNN SEOUL BUREAU CHIEF (voice-over): The news of Kim Sun-il's death devastated his family in the South Korean city of Pusan. His parents and sisters wept in front of a small, makeshift altar adorned with Kim's photograph.

He was an Arabic speaker and devout Christian who had worked in Iraq for a year as a translator for a South Korean firm supplying goods to the U.S. military. Monday night, South Korean news reports had said Kim was seen alive and that negotiations were under way for his safe release.

But hours later, South Korea's Foreign Minister announced that the U.S. military in Iraq had reported finding Kim's body on the road from Baghdad to Fallujah.

After an emergency meeting of the National Security Council, the government released a statement strongly condemning the killing as "an inhumane act of terror." And it said it will strengthen safety measures to prevent similar incidents and seek an early withdrawal of all South Korean civilians from Iraq.

But the government reiterated its position that Seoul will push ahead with plans to send an additional 3,000 troops to Iraq. The statement said the deployment was for reconstruction and humanitarian aid. The kidnappers had demanded South Korea not send further troops.

South Korean civic groups had also called for the government to scrap its deployment plans, a demand that many believe will become stronger with the brutal killing of Kim Sun-il.

(END VIDEOTAPE)

SOHN: Now, there are going to be protesters gathering in the streets in just a short while from now. They're going to also be there calling for the South Korean government to scrap their plans to deploy more troops to Iraq. They're going to raise their voices in the hopes that they can actually change the government's mind, Carol.

COSTELLO: And so far, South Korea -- the South Korean government, at least, is not changing its mind, correct?

I don't think Sohn Jie-Ae could hear me, but that was Sohn Jie-Ae reporting live from South Korea this morning. We'll have much more for you through the two hours of DAYBREAK. For more on the tragic killing of that South Korea hostage and other developments in Iraq, you can also log onto our Web site, cnn.com.

Just ahead on DAYBREAK, is a nuclear-powered breakthrough on the table? The U.S. says it's time to make a deal to keep North Korea's nuclear ambitions in check. We'll get the latest on those negotiations.

And employees get the green light to take on the nation's largest retailer. We'll tell you why some women of Wal-Mart are saying, "Enough is enough."

Also ahead, a live report on the status of those British troops being held by Iran.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Diplomats are meeting in Beijing today to once again try to convince North Korea to freeze its nuclear weapons programs. This will be round three of the six-nation talks, but so far North Korea is doing exactly the opposite of what's being asked.

CNN's Mike Chinoy outlines what's at stake.

(BEGIN VIDEOTAPE)

MIKE CHINOY, CNN SR. ASIA CORRESPONDENT (voice-over): Since these six-nation talks began, North Korea has increased its nuclear arsenal, and the Bush administration's strategy of isolating and confronting the regime of Kim Jong-Il has faltered.

JON WOLFSTHAL, CARNEGIE ENDOWMENT: North Korea continues to possess the capability to build, perhaps, anywhere from three to nine nuclear weapons. Their nuclear program is totally unconstrained.

CHINOY: Meanwhile, Washington's Asian's allies, Japan's Prime Minister Koizumi and South Korean President Roh Moo-hyun, have begun to pursue their own engagement with Pyongyang.

MOON CHUNG-IN, ADVISER TO SOUTH KOREAN PRESIDENT: I believe the North Korean (ph) government is very unhappy about the very rigid stance by the United States.

CHINOY: In recent weeks, the North and South Korean armed forces have discussed confidence-building measures, while Japan's Prime Minister Koizumi has held his own summit with Kim Jong-Il, who told him North Korea is eager to mend fences with Washington.

DONALD GREGG, FMR. U.S. AMB. TO S. KOREA: What the North Koreans are saying to us is we're not Iraq, we're not Libya. We have nuclear weapons. And we'd like to make a deal with you.

CHINOY: But going into these talks, the Bush administration has again insisted the North dismantle all its nuclear programs before anything else can be discussed. North Korea experts say that's not going to happen.

LEE SIGAL, NORTH KOREA EXPERT: If we know anything about North Korea, we know it's not into unconditional surrender. They've never done it; they never -- they don't respond well when they're coerced. They just counter-coerce.

CHINOY: That may explain why China's leaders, who have pressed Kim Jong-Il to join the six-nation talks, are now pressing Washington to take a more flexible line.

(END VIDEOTAPE)

CHINOY: Now Carol, as these talks got under way, there was a sign that the United States may be trying to respond to the concerns of its Asian partners. The U.S. envoy here declaring that he was bringing a new proposal to the table, apparently one involving some additional incentives for the North to give up its nuclear program.

For his part, the North Korean envoy said that if the United States ended what Pyongyang calls "the U.S. hostile policy," it would be willing to give up all its nuclear weapons. Whether that's enough to bridge the gap between the two nations, however, is far from clear -- Carol.

COSTELLO: We'll see. Mike Chinoy reporting live for us from Beijing.

Your news, money, weather and sports. It's 5:18 Eastern. Here's what's all-new this morning:

An Iranian official says the government plans to release eight British service members who were arrested for crossing Iran's territorial waters. That's according to the state-run media. The report says the men will be released sometime today.

A White House memo shows President Bush concluded that the Geneva Conventions governing the treatment of prisoners of war did not apply to al-Qaeda or Taliban. But he ordered the military to file the Geneva rules anyway.

In money news, the government's war chest is growing. The House of Representatives has passed a $470 billion bill to fund defense programs. It included $25 billion in interim funds for operations in Iraq and Afghanistan.

In culture, Supreme Court Justice Sandra Day O'Connor has been honored for her volunteer work by the American Institute for Public Service. O'Connor is the first woman to serve on the U.S. Supreme Court.

In sports, a grand slam as Nomar Garciaparra's first home run of the year, and the Boston Red Sox beat the Minnesota Twins nine to two. I don't think that Achilles' tendon is hurting him anymore, Chad.

CHAD MYERS, CNN METEOROLOGIST: Nope. Nope. He's all better now.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Wal-Mart is facing a massive class-action lawsuit that could include more than a million and a half plaintiffs. The issue is whether the nation's largest private employer systematically discriminated against its female employees.

CNN's Jen Rogers has more of the details for you.

(BEGIN VIDEOTAPE)

(BEGIN VIDEO CLIP, WAL-MART AD)

UNIDENTIFIED FEMALE: It's not easy to have a career and a family. But my job makes it a lot easier to do both.

(END VIDEO CLIP)

JEN ROGERS, CNNfn CORRESPONDENT (voice-over): Wal-Mart ads say one thing. Christine Kwapnoski tells a different story.

CHRISTINE KWAPNOSKI, WAL-MART EMPLOYEE: The first time I saw that ad I had to laugh.

ROGERS: An 18-year veteran of the world's largest retailer, Kwapnoski alleges Wal-Mart is not an ideal workplace for women.

KWAPNOSKI: I've been promoted over several times. Ended up training the male counterparts that were being promoted over me.

ROGERS: Kwapnoski, who is suing Wal-Mart along with six other women, alleges the company discriminates against women when it comes to pay, promotion and training. That lawsuit became the largest civil rights class-action case ever, according to the womens' attorney, who says size matters when you're fighting Wal-Mart.

BRAD SELIGMAN, LEAD PLAINTIFFS' ATTORNEY: It's the largest case anyone has brought against Wal-Mart. They've never faced a national class action. They've always faced local, smaller cases. This is the first time that the entire company, coast to coast, is on the line. And that really does make a difference.

ROGERS: The class certified by a federal judge in San Francisco cover ever female employee who works or worked at a Wal-Mart owned store in the United States since late 1998. That's over 1.5 million women.

Wal-Mart denies it discriminates against women, and says it has announced a new job classification and pay structure for hourly associates, which is designed to ensure internally equity and external competitiveness.

(on camera): Wal-Mart is also quick to point out that Tuesday's order is not a ruling on the merits of the case, but a decision that the suit meets the legal requirements to move forward under class- action status.

(voice-over): Wal-Mart fought class-action certification in court last fall, arguing its 3,200 stores are autonomous, acting as individual businesses with most decisions regarding pay and promotion made at the local level.

After a speech in Washington Tuesday, Wal-Mart chairman Rob Walton said the class certification is cause for concern.

ROB WALTON, WAL-MART CHAIRMAN: We believe that it's wrong and that the judge has made a mistake.

ROGERS: The company says it will appeal Tuesday's decision; no trial date has been set. Plaintiffs' attorneys say they will have no problem locating the million-plus women now part of this class, saying Wal-Mart keeps the best employment records of any company in the United States.

Jen Rogers, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

COSTELLO: "Fahrenheit 9/11" tees off on President Bush.

(BEGIN VIDEO CLIP)

MICHAEL MOORE, FILMMAKER (voice-over): With everything going wrong, he did what any of us would do. He went on vacation.

(MUSIC)

(END VIDEO CLIP)

COSTELLO: But Michael Moore is feeling the heat this morning. We'll tell you why his controversial new film is suffering a setback.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Democrats, Republican or independent, you're going to have to be over 17 if you want to see "Fahrenheit 9/11" without an adult. The Motion Picture Association of America has now denied a request to drop the film's rating from 'R' to 'PG-13.' The rating is for violent images and language. The critical documentary of President Bush opens across the country on Friday.

Chad just brought up a controversial point. He says, why are we devoting a whole block to this movie?

MYERS: Well, you know what? Actually we're -- this was supposed to be about the NC -- or the 'R' rating or the 'PG' rating and all that other kind of stuff. And we -- you've got Iraqis burned by napalm, you've got someone throwing the body of a baby into a pile of other bodies. And then also you have -- let me look at it for you...

COSTELLO: A lot of graphic images.

MYERS: The public beheading in Saudi Arabia, the first one I believe it was. And you know what? There's a lot of things that maybe a 13-year-old shouldn't see without a parent.

COSTELLO: Well, Michael Moore says he's willing to sneak in any teenager who wants to go into the movie.

MYERS: As long as he sits there with that child the whole time, go right ahead.

COSTELLO: And he has the permission of their parent. I don't know.

Anyway, but they're saying that even with an 'R' rating, there is still intense interest in this film.

MYERS: Sure.

COSTELLO: It's going to open on some 838 movie theaters across the country, which is unusual for a documentary.

MYERS: You have to realize that there's some fact, there's a little bit of fiction and there's some propaganda. And you have to be able to filter it out, I think. You know, I mean, so...

COSTELLO: But, you know, I think people are smart enough to do that.

MYERS: Yes, but is it -- is a 12-year-old?

COSTELLO: Oh, well, no, I don't think so.

MYERS: No, OK. So maybe that's -- I mean -- and Jack Pawlenty, I'll tell you what, he was the one who was all in favor of this 'R' rating. He is very happy. He said, "The system works. We're happy that it's an 'R' rating. It should be an 'R' rating. If they want to take some of that stuff out, go right ahead. Then we'll make it 'PG- 13.'"

COSTELLO: Enough said.

MYERS: All right.

COSTELLO: Thank you, Chad.

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

President Clinton is in a pickle. Well, not really -- at least not this time. But recent comments from the former president have people looking for some hidden meanings.

A tiff in Tehran may soon be over. British troops held captive could soon be set free. We're going to take you live to London to get the latest.

This is DAYBREAK for Wednesday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN FINANCIAL NEWS: The most shocking thing about TASER International lately has been the ride its share price is taking. The company is a leading manufacturer of guns that deliver a jolt of electricity to subdue attackers.

And security concerns are prompting interest stock. TASER stock price has zoomed to a 52-week high of 64 in April. Recently, it has retreated back into the $30 range.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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