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CNN Live At Daybreak

Saddam Now in Iraqi Legal Custody; Ruling on Israel's Barrier; Teacher Sex Scandal

Aired June 30, 2004 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Iraqis are given legal custody of Saddam Hussein. It is Wednesday, June 30. This is DAYBREAK.
And good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here are the latest headlines for you now.

Saddam Hussein is no longer a prisoner of war. He is now officially in the legal custody of Iraqi officials, but he is still physically in U.S. military hands. Tomorrow, the deposed leader will get his first day in court. We'll have a live report from Baghdad in just about a minute and a half.

Israel's supreme court has ordered that a section of that controversial West Bank security barrier be rerouted. The ruling came down just a short time ago. The justices say the fence infringes on the lives of 35,000 Palestinians.

Joel Steinberg, remember him? He'll be released from a New York prison today. It comes 16 years after he was convicted of beating to death his 6-year-old adopted daughter, Lisa. It's a case that changed stereotypes of child abuse victims.

In money news, the Fed may vote today to raise interest rates. Fed Chairman Alan Greenspan has been hinting about that for a while now. If rates go up, it would be the first hike in four years.

In culture, the first permanent memorial to Princess Diana has opened in London's Hyde Park. The 690-foot moving water sculpture will also double as a children's water park.

In sports, Arizona Diamondbacks pitcher Randy Johnson became just the fourth Major Leaguer to strike out 4,000 batters. Johnson joins Nolan Ryan, Steve Carlton and Roger Clemens in the 4,000 K club.

(WEATHER BREAK)

COSTELLO: Iraq has taken the first step towards trying Saddam Hussein. The deposed leader is now in Iraqi legal custody. The transfer happened, oh, just about two hours ago.

Let's take you live to Baghdad and our chief international correspondent, Christiane Amanpour. She has more for you this morning.

Hello -- Christiane. CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Carol, the whole formal procedure went like this: The Iraqis presented papers to the Americans, formally demanding the -- requesting the legal custody be returned to them. That was last night. But that only became effective when the head of the special Iraqi tribunal went to visit Saddam Hussein at about 9:00 local time this morning, he and 11 others who have also been recently issued with arrest warrants. And they informed them that they are no longer prisoners of war; that they are now under the Iraqi legal and criminal system. So, they are detained now as Iraqi prisoners.

The next step, we're told, is going to be an arraignment, a court appearance, tomorrow. Saddam still remains, as you mentioned, in American custody and will do so for the foreseeable future, until there is any sort of real secure Iraqi prison that can take care of him.

When we asked what Saddam Hussein's reaction was, we were told that he was slightly stunned. He was sort of looked a bit visibly shaken. He sat on a chair. He said, "Can I ask some questions?" And he was told, no, that will have to wait until the court appearance.

He was informed, as were the others, that they had the right to defense counsel. He was also told about the statute of the special tribunal and what it was all about and the laws that governed it. And the next step is now this arraignment in a court here tomorrow in Iraq.

After that, there will be formal indictment lodged, but that's not expected to be before many, many months, because it takes a long time to build up a crime base, to build up formal charges on the kinds of very, very serious charges that he will have lodged against him.

After that, it will be many months later until he comes to trial, we're told. And we're specifically told that Saddam Hussein will not be the first to go on trial -- Carol.

COSTELLO: Christiane, I know you said he had a right to defense counsel, but will his very colorful lawyer, the one he has now, will he be able to represent Saddam Hussein?

AMANPOUR: You know, we're told that formally Saddam Hussein has no lawyer. The lawyers that are being appointed are by his family. He has never had the right to have a lawyer until right now, until he's formally been issued an arrest warrant. Then, he formally has the right to appoint himself a lawyer.

We're told, although there is some confusion, that the main lawyer under now this Iraqi legal process has to be an Iraqi lawyer. He may be allowed to have, probably will be allowed to have, foreign lawyers on the team. But the main lawyer of record under this special tribunal process must be Iraqi.

COSTELLO: Christiane Amanpour live from Baghdad this morning. Thank you. Though it's clearly a new day in Iraq, there are still many unsettled issues, like the status of hostages. Here's what we know right now.

In South Korea, an emotional farewell for a translator beheaded by Islamist militants in Iraq. Thousands crowded into a gymnasium in Buson to attend the funeral of Kim Sun-il, who was beheaded last week by a group led by Abu Musab al-Zarqawi.

Military officials are now classifying Marine Corporal Wassef Hassoun as captured and no longer a deserter. He was shown on TV blindfolded with armed insurgents. The military says the circumstances regarding his absence remain under investigation.

And there has been no word on one other U.S. serviceman being held prisoner by Iraqi insurgents. Army Specialist Matt Maupin was captured on April 9. The military has not confirmed reports that he was shot and killed by insurgents.

President Bush is back in Washington this morning after his trip to a pair of summits. The president returned to the White House from Turkey, where the handover in Iraq dominated the discussion between NATO nations.

And while the president gets back to business at the White House, his opponent in the upcoming election is keeping up the campaign. John Kerry picked up the endorsement of the Congressional Hispanic Caucus, and picked up some unexpected entertainment on his campaign plane.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (singing): The real deal keeps on flying, John Kerry keeps on trying. Trying. Trying. Trying.

(END VIDEO CLIP)

COSTELLO: Oh, while Kerry may have been caught off guard by the impromptu concert, he stayed on message in his next campaign stop.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: Every time we have fought to raise the minimum wage in the Senate, you hear the same arguments. Oh, don't do that. It's going to hurt business. Oh, don't do that. Small businesses won't hire. Don't do that. Students won't be able to work. And every single time we raise it, America grows, students work, small businesses grow, we get stronger, America gets wealthier, and America gets fairer. And that's why I intend to raise the minimum wage to $7.00 an hour by the year 2007 so people can actually get ahead.

(END VIDEO CLIP)

COSTELLO: The choice of Kerry's running mate is still up in the air. In a recent CNN/"USA Today"/Gallup Poll, John Edwards was the choice to add enthusiasm to the Kerry campaign. Seventy two percent of respondents picked the North Carolina senator. Dick Gephardt was the second choice, followed closely by Wesley Clark.

Israel's high court ruled that a section of that West Bank security fence must be rerouted. The court says the current path of the security barrier would burden the lives of 35,000 Palestinians.

CNN's Ralitsa Vassileva joins us live from Jerusalem with more on that.

Good morning -- Ralitsa.

RALITSA VASSILEVA, CNN CORRESPONDENT: Good morning, Carol.

What the court found was, it found that there was a lack of balance between the humanitarian needs of those 35,000 Palestinians you mentioned, living along the path, that 30-kilometer stretch of barrier, and Israel's security needs. Israel says it's building this wall to stop attacks on its civilian population. The Palestinians say this wall amounts to a land grab. It's a very controversial issue between the two sides.

And so, what the court found is that the route of this wall, this 30-kilometer stretch, must be altered because it violates the rights under humanitarian and international law of those living along its path. And it's a burden to the villagers' entire way of life. It says that the path of the wall should be altered even if it lessens Israel's security, but it does not question the legality of the wall itself. It finds that Israel has the right to build that barrier.

We have reaction. We've had reaction just coming in now from the Palestinian prime minister, Ahmed Qorei, who is not happy with this decision, saying it's the wall itself being built on Palestinian territory that is the problem.

(BEGIN VIDEO CLIP)

AHMED QOREI, PALESTINIAN PRIME MINISTER: I don't think that it is just a matter to change the route or not. It's being built. It's a wall. It's a separation wall, which is being built on the Palestinian territories. Why we call it separation wall and racism separation wall? Because it separates between the family itself, between the students and their schools, between the children and their parents, between the patients and their hospitals, et cetera.

Therefore, it is a real separation, racism separation wall, and therefore this should be falling.

(END VIDEO CLIP)

VASSILEVA: For its part, the Israeli defense establishment has also reacted, saying that this verdict will cause irreparable damage. However, they will abide by it. They will find an alternate route acceptable to Israel's high court.

COSTELLO: Ralitsa Vassileva reporting live from Jerusalem this morning. Thank you.

Still to come on DAYBREAK, with Saddam Hussein now in the legal custody of the Iraqis, what's the reaction on the street and the airwaves in the Arab world?

And a teacher accused of an illicit affair with a student, a 14- year-old male. Details of a case that has one town talking.

Then, a popular car goes green. Find out which company is making more hybrids available.

This is DAYBREAK for June 30.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:13 Eastern. Here's what's all new this morning.

Iraqi authorities are now officially in legal control of Saddam Hussein. Custody of Saddam and 11 other former Iraqi leaders has been transferred. Coalition forces are still physically holding the group until Iraqi security is ready to take over, though.

New rules go into effect today on travel to Cuba. Hundreds lined up at airports in an attempt to beat the deadline. The rules prohibit Cuban-Americans from visiting family members in Cuba more than once every three years. The new law replaces the once-a-year restriction.

In money news, the Mega Million lottery jackpot is getting even bigger. There were no winning tickets for last night's drawing, which was worth $220 million. So, the estimated jackpot for the next drawing on Friday: $280 million. Good luck.

In culture, Al Sharpton is coming to a different kind of reality TV. The former presidential candidate will host a career makeover show on Spike TV. "I Hate my Job with Al Sharpton" is set to debut this fall.

In sports, Miami Dolphins tight end Randy McMichael has been charged with aggravated batter after a fight with his pregnant wife. His pregnant wife was also booked on domestic battery charges. If convicted, McMichael could face 15 years in prison.

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you this morning.

It is official. Saddam Hussein is in Iraqi hands now, at least legally. So, what are they saying about that this morning?

Our senior Arab affairs editor, Octavia Nasr, joins us on DAYBREAK with how the Arab networks are handling the handover, and they're already talking about it.

OCTAVIA NASR, CNN SENIOR ARAB AFFAIRS EDITOR: They're down in the streets talking to Iraqis, ordinary Iraqis, about what they think about this legal custody and whether Saddam Hussein, in their eyes, will get a fair trial.

Mixed reactions. Some are saying he shouldn't be tried. He wasn't as bad after all. Others are saying he should be hung, not once, not twice, but 20 times. And there are those who are saying this whole thing is an American film, and American movie, with the drama and the suspense and all that. It's...

COSTELLO: So, it's a setup?

NASR: Well, they're not saying that about the trial, but you have the skeptics, the people who say that this is all about humiliating Saddam Hussein more than really giving him a fair trial. This whole brouhaha about, you know, when he's going to be tried, you know, when he's going to be arraigned, you know, a lot of drama around it...

COSTELLO: But they have never...

NASR: ... that's what they're saying.

COSTELLO: But they have never witnessed anything like this, so they probably don't know quite how to take it.

NASR: Absolutely. And I think this is what's making it very interesting for Arabs in general and Arab media in particular. This is going to be the first Arab leader to be tried in a court of law. And as one journalist told me this morning, he said, what's the difference between Saddam Hussein and the other Arab leaders sitting on the thrones today? No big difference, except he is in custody, in U.S. custody, and he's going to be facing trial and the others are still ruling, and also friends of the U.S.

COSTELLO: Well, so, depending on what happens to Saddam Hussein, might that invoke more change? Might that cause more change in the Arab world?

NASR: You know, the Arab street, judging by what they're saying on Arab media, the Arab street seems to hope so. It looks like no matter where you stand on this issue, whether you support the trial or not, it seems that they're hoping that something good is going to come out of this -- transparency, democracy, a good life. Iraqis keep saying, we are looking forward to a good life, to jobs and schools and good things happening to us. So, there is a lot of hope on Arab streets.

COSTELLO: Going back to the trial itself, a lot of people say it won't be televised. But will it?

NASR: Well, we don't know. Arab media are just like us, so they're in the same boat. We're waiting to see how this whole thing is going to unfold. And I think this is where the comments about the American movie are coming from. It seems that the U.S. is holding all the cards on this. They're calling the shots. They're deciding.

And, you know, it's going to be major decision. Do you televise the trial? Do you carry it live? That will be a first, and that will be a big first if that happens.

So, the U.S. is holding all the cards and all the answers. Arab media are just like us...

COSTELLO: Waiting.

NASR: ... waiting to see how things are going to unfold.

COSTELLO: Octavia Nasr, thanks for joining DAYBREAK this morning.

NASR: You bet. Thank you.

COSTELLO: It's time for a little business buzz now.

Are you in the market for a new car? If you wait a few months you can buy a hybrid Accord.

Carrie Lee has more on that live from the Nasdaq Marketsite.

Interesting.

CARRIE LEE, CNN FINANCIAL NEWS: It is interesting, Carol, the 2005 version of the Accord no less. This, of course, is coming from Honda. They're going to sell this gas-electric hybrid sometime late next year. "USA Today" reporting that it's going to be marketed as a high-end sedan with more power than the gas model and better mileage.

Now, what you're seeing here is actually the Honda Insight. This is another hybrid from Honda, but the Accord is coming out, as I said, later in this year, going on the floor in November, December, for about $30,000. And that's roughly 3,000 more than the top-end Accord EX gas car.

So, people paying more for this or that's the expectation anyway. That's really true for hybrids across the board. There is such strong demand that they are including some premium pricing to these products.

Meanwhile, Honda forecasts about 32 miles per gallon in town, 38 on the highway. And, Carol, that's about the same as the smaller Civic four cylinder gasoline car. So, if you're interested in a hybrid car, you really have to think about the gas mileage. Is it going to outweigh those high premium sticker prices? And that's something that I think not a lot of people are aware of.

COSTELLO: It's interesting that the demand is getting high for hybrids, though.

LEE: There is a lot of demand. Well, because we've seen gasoline prices on the rise, of course. And people may be thinking, you know, I just want to do the right thing environmentally, particularly in California where there are all of those regulatory emissions laws and things like that.

By the way, Ford is coming out with its Escape hybrid later this summer. Toyota's Prius is already available. And they're working on a mid-sized Camry sedan in a hybrid version as well. So, more of these companies are coming out with these vehicles. We'll see if people snap them up.

COSTELLO: Yes, we'll see. Carrie Lee live from the Nasdaq Marketsite. Thank you.

When we come back, a community shocked by allegations of a scandalous affair. Did this teacher take part in a forbidden romance?

And, how does a Supreme Court ruling affect the way your family surfs the Web?

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Paula Jones, remember Paula Jones? She's the Arkansas woman whose sexual harassment suit against former President Clinton helped trigger his impeachment. In his new memoir, President Clinton once again denies harassing Jones. But in an exclusive interview with CNN's Paula Zahn, Jones says that's not the truth, and she is willing to debate the issue.

(BEGIN VIDEO CLIP)

PAULA JONES, FORMER PLAINTIFF: I'm just trying to prove that, you know, look, I'm not afraid of debating him, because I know what happened happened. He says it didn't happen, but it did happen. And I'm just saying that to prove a point that I'm not embarrassed or ashamed to be out and meet him eye to eye and tell him he knows he did what he did to me, but Bill Clinton would never agree to something like that. But I'm just putting that out there to let people know that I'm not afraid to debate him.

(END VIDEO CLIP)

COSTELLO: That really was Paula Jones. We swear.

In the meantime, President Clinton's book is setting record sales figures. It sold more than 400,000 copies since hitting the shelves last Tuesday and is expected to hit the one million mark today.

And there is more this morning to tell you about on the sex and scandal front. A young teacher in Florida is facing charges relating to her alleged relationship with a 14-year-old boy.

CNN's Bryan Todd has details for you.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): Her marriage and career just beginning, this 23-year-old remedial reading teacher is now at the center of a sordid case that swept through a huge Florida community.

Debra Beasley Lafave faces five counts in connection with her alleged relationship with a 14-year-old boy.

SUSAN LIVOTT, MARION COUNTY SHERIFF'S OFFICE: All the contact has been sexual in nature.

TODD: Police and sheriff's officers in two counties tell CNN Lafave met the boy at the school where she teaches, Greco Middle School in Temple Terrace, a suburb of Tampa. They say the boy was not her student, but she approached him at various school events, and earlier this month they began having sex, first at her apartment, then inside her portable classroom at the middle school.

Then, authorities say, the boy went on vacation at the home of his cousin, north of Tampa in Ocala, Florida, and Lafave followed him.

LIVOTT: And the teacher traveled to Ocala from her home and met with the student and also his cousin. And some of these activities took place in front of the cousin.

TODD: The activities in question, according to the Marion County Sheriff's Office, sex in the backseat of an SUV on at least two occasions while the boy's 15-year-old cousin was driving.

Police back in Temple Terrace were notified after the 14-year-old told his parents of the alleged encounters. Temple Terrace Police contacted the Marion County Sheriff's Office, and Debra Lafave has now been booked on four counts of lewd and lascivious battery and one count of lewd and lascivious exhibition. She's been released on bond from both counties.

Her attorney spoke to reporters this week.

JOHN FITZGIBBONS, DEBRA LAFAVE'S ATTORNEY: There is a presumption of innocence in this country for anyone charged with a crime. And we hope that everyone would listen to that.

TODD (on camera): In the Marion County Sheriff's probable cause affidavit, the boy told detectives that Lafave was -- quote -- "turned on by the fact that having sex with him was not allowed." Hillsborough County school officials tell CNN Debra Lafave is now on administrative leave with pay.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: A complicated issue to sort out this morning. The Supreme Court has ruled on a controversial law that was aimed at shielding children from questionable content on the Internet, as in pornography. The justices blocked the law and sent it back to the lower courts. The law did not deal with just online pornography, but also with more legitimate Web sites that cater to adult issues.

Writing for the 5-4 majority, Justice Anthony Kennedy says the law was potentially harmful to free speech.

So, it was a law supposed to protect children from harmful materials, such as porn, but it likely violates free speech. That's the ruling in a nutshell.

What is certain, it is confusing; hence, a little "Coffey Talk" about the Child Online Protection Act. Kendall Coffey, our legal analyst, joins us live from Miami.

The Bush administration pushed this through to protect children, Kendall. Can you explain what the law was supposed to be? What was it supposed to do?

KENDALL COFFEY, CNN LEGAL ANALYST: What the law was supposed to do is create the equivalent of a bouncer checking I.D. before a teenager can walk into a bar and set up that kind of protection mechanism with respect to Internet access. And, Carol, you're someone who still gets carded. I'm sure you know exactly what I'm talking.

COSTELLO: Oh, exactly. But to make it more clear for our audience, if a child attempted to go online at a porn site, there would be a credit card demanded. Is that right?

COFFEY: Yes, what this law did is create some kind of an access code requirement. It could be a credit card. It could be a password. And what the Supreme Court said is not that you're not entitled to have this bouncer checking the I.D., but that that may be the wrong say to do it.

That because of all of the advances in technology that it may actually be a much better protection for children, a much better way for parents to regulate what happens in their own home if there is instead the use of blocking and filtering software to keep the stuff out before it even reaches the home.

And the Supreme Court bases that on a commission that studied the issue very closely and indicated that these blocking and filtering software could be a lot more effective than some kind of a password, because kids can get credit cards, kids can get pass codes, and that that might actually be a less effective means for protecting the home.

COSTELLO: Doesn't this illustrate just how difficult it is to deal with the Internet?

COFFEY: It really does. And the fact that you had such a close decision, 5-4, where everybody agrees that it's a genuine concern, that Congress ought to be doing something about this, and yet the court is so unclear on the technology that they say that, look, after five years, whatever the record was in 1999 has to be re-examined. Let's find out what really works.

So, it's going to go back to the court, more experts, more analysis, and at some point we'll see what is going to be the identity, the electronic form of that bouncer.

COSTELLO: Kendall Coffey live on the phone from Miami making things a lot clearer for us this morning. Thank you.

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

The return of Saddam Hussein to Iraqi legal custody. How are people reacting to the news?

And, five times the parole board said no, but this morning a man convicted of killing his adopted daughter will walk free. We'll have a live report from the prison where that is about to take place.

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Aired June 30, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Iraqis are given legal custody of Saddam Hussein. It is Wednesday, June 30. This is DAYBREAK.
And good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here are the latest headlines for you now.

Saddam Hussein is no longer a prisoner of war. He is now officially in the legal custody of Iraqi officials, but he is still physically in U.S. military hands. Tomorrow, the deposed leader will get his first day in court. We'll have a live report from Baghdad in just about a minute and a half.

Israel's supreme court has ordered that a section of that controversial West Bank security barrier be rerouted. The ruling came down just a short time ago. The justices say the fence infringes on the lives of 35,000 Palestinians.

Joel Steinberg, remember him? He'll be released from a New York prison today. It comes 16 years after he was convicted of beating to death his 6-year-old adopted daughter, Lisa. It's a case that changed stereotypes of child abuse victims.

In money news, the Fed may vote today to raise interest rates. Fed Chairman Alan Greenspan has been hinting about that for a while now. If rates go up, it would be the first hike in four years.

In culture, the first permanent memorial to Princess Diana has opened in London's Hyde Park. The 690-foot moving water sculpture will also double as a children's water park.

In sports, Arizona Diamondbacks pitcher Randy Johnson became just the fourth Major Leaguer to strike out 4,000 batters. Johnson joins Nolan Ryan, Steve Carlton and Roger Clemens in the 4,000 K club.

(WEATHER BREAK)

COSTELLO: Iraq has taken the first step towards trying Saddam Hussein. The deposed leader is now in Iraqi legal custody. The transfer happened, oh, just about two hours ago.

Let's take you live to Baghdad and our chief international correspondent, Christiane Amanpour. She has more for you this morning.

Hello -- Christiane. CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Carol, the whole formal procedure went like this: The Iraqis presented papers to the Americans, formally demanding the -- requesting the legal custody be returned to them. That was last night. But that only became effective when the head of the special Iraqi tribunal went to visit Saddam Hussein at about 9:00 local time this morning, he and 11 others who have also been recently issued with arrest warrants. And they informed them that they are no longer prisoners of war; that they are now under the Iraqi legal and criminal system. So, they are detained now as Iraqi prisoners.

The next step, we're told, is going to be an arraignment, a court appearance, tomorrow. Saddam still remains, as you mentioned, in American custody and will do so for the foreseeable future, until there is any sort of real secure Iraqi prison that can take care of him.

When we asked what Saddam Hussein's reaction was, we were told that he was slightly stunned. He was sort of looked a bit visibly shaken. He sat on a chair. He said, "Can I ask some questions?" And he was told, no, that will have to wait until the court appearance.

He was informed, as were the others, that they had the right to defense counsel. He was also told about the statute of the special tribunal and what it was all about and the laws that governed it. And the next step is now this arraignment in a court here tomorrow in Iraq.

After that, there will be formal indictment lodged, but that's not expected to be before many, many months, because it takes a long time to build up a crime base, to build up formal charges on the kinds of very, very serious charges that he will have lodged against him.

After that, it will be many months later until he comes to trial, we're told. And we're specifically told that Saddam Hussein will not be the first to go on trial -- Carol.

COSTELLO: Christiane, I know you said he had a right to defense counsel, but will his very colorful lawyer, the one he has now, will he be able to represent Saddam Hussein?

AMANPOUR: You know, we're told that formally Saddam Hussein has no lawyer. The lawyers that are being appointed are by his family. He has never had the right to have a lawyer until right now, until he's formally been issued an arrest warrant. Then, he formally has the right to appoint himself a lawyer.

We're told, although there is some confusion, that the main lawyer under now this Iraqi legal process has to be an Iraqi lawyer. He may be allowed to have, probably will be allowed to have, foreign lawyers on the team. But the main lawyer of record under this special tribunal process must be Iraqi.

COSTELLO: Christiane Amanpour live from Baghdad this morning. Thank you. Though it's clearly a new day in Iraq, there are still many unsettled issues, like the status of hostages. Here's what we know right now.

In South Korea, an emotional farewell for a translator beheaded by Islamist militants in Iraq. Thousands crowded into a gymnasium in Buson to attend the funeral of Kim Sun-il, who was beheaded last week by a group led by Abu Musab al-Zarqawi.

Military officials are now classifying Marine Corporal Wassef Hassoun as captured and no longer a deserter. He was shown on TV blindfolded with armed insurgents. The military says the circumstances regarding his absence remain under investigation.

And there has been no word on one other U.S. serviceman being held prisoner by Iraqi insurgents. Army Specialist Matt Maupin was captured on April 9. The military has not confirmed reports that he was shot and killed by insurgents.

President Bush is back in Washington this morning after his trip to a pair of summits. The president returned to the White House from Turkey, where the handover in Iraq dominated the discussion between NATO nations.

And while the president gets back to business at the White House, his opponent in the upcoming election is keeping up the campaign. John Kerry picked up the endorsement of the Congressional Hispanic Caucus, and picked up some unexpected entertainment on his campaign plane.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (singing): The real deal keeps on flying, John Kerry keeps on trying. Trying. Trying. Trying.

(END VIDEO CLIP)

COSTELLO: Oh, while Kerry may have been caught off guard by the impromptu concert, he stayed on message in his next campaign stop.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: Every time we have fought to raise the minimum wage in the Senate, you hear the same arguments. Oh, don't do that. It's going to hurt business. Oh, don't do that. Small businesses won't hire. Don't do that. Students won't be able to work. And every single time we raise it, America grows, students work, small businesses grow, we get stronger, America gets wealthier, and America gets fairer. And that's why I intend to raise the minimum wage to $7.00 an hour by the year 2007 so people can actually get ahead.

(END VIDEO CLIP)

COSTELLO: The choice of Kerry's running mate is still up in the air. In a recent CNN/"USA Today"/Gallup Poll, John Edwards was the choice to add enthusiasm to the Kerry campaign. Seventy two percent of respondents picked the North Carolina senator. Dick Gephardt was the second choice, followed closely by Wesley Clark.

Israel's high court ruled that a section of that West Bank security fence must be rerouted. The court says the current path of the security barrier would burden the lives of 35,000 Palestinians.

CNN's Ralitsa Vassileva joins us live from Jerusalem with more on that.

Good morning -- Ralitsa.

RALITSA VASSILEVA, CNN CORRESPONDENT: Good morning, Carol.

What the court found was, it found that there was a lack of balance between the humanitarian needs of those 35,000 Palestinians you mentioned, living along the path, that 30-kilometer stretch of barrier, and Israel's security needs. Israel says it's building this wall to stop attacks on its civilian population. The Palestinians say this wall amounts to a land grab. It's a very controversial issue between the two sides.

And so, what the court found is that the route of this wall, this 30-kilometer stretch, must be altered because it violates the rights under humanitarian and international law of those living along its path. And it's a burden to the villagers' entire way of life. It says that the path of the wall should be altered even if it lessens Israel's security, but it does not question the legality of the wall itself. It finds that Israel has the right to build that barrier.

We have reaction. We've had reaction just coming in now from the Palestinian prime minister, Ahmed Qorei, who is not happy with this decision, saying it's the wall itself being built on Palestinian territory that is the problem.

(BEGIN VIDEO CLIP)

AHMED QOREI, PALESTINIAN PRIME MINISTER: I don't think that it is just a matter to change the route or not. It's being built. It's a wall. It's a separation wall, which is being built on the Palestinian territories. Why we call it separation wall and racism separation wall? Because it separates between the family itself, between the students and their schools, between the children and their parents, between the patients and their hospitals, et cetera.

Therefore, it is a real separation, racism separation wall, and therefore this should be falling.

(END VIDEO CLIP)

VASSILEVA: For its part, the Israeli defense establishment has also reacted, saying that this verdict will cause irreparable damage. However, they will abide by it. They will find an alternate route acceptable to Israel's high court.

COSTELLO: Ralitsa Vassileva reporting live from Jerusalem this morning. Thank you.

Still to come on DAYBREAK, with Saddam Hussein now in the legal custody of the Iraqis, what's the reaction on the street and the airwaves in the Arab world?

And a teacher accused of an illicit affair with a student, a 14- year-old male. Details of a case that has one town talking.

Then, a popular car goes green. Find out which company is making more hybrids available.

This is DAYBREAK for June 30.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:13 Eastern. Here's what's all new this morning.

Iraqi authorities are now officially in legal control of Saddam Hussein. Custody of Saddam and 11 other former Iraqi leaders has been transferred. Coalition forces are still physically holding the group until Iraqi security is ready to take over, though.

New rules go into effect today on travel to Cuba. Hundreds lined up at airports in an attempt to beat the deadline. The rules prohibit Cuban-Americans from visiting family members in Cuba more than once every three years. The new law replaces the once-a-year restriction.

In money news, the Mega Million lottery jackpot is getting even bigger. There were no winning tickets for last night's drawing, which was worth $220 million. So, the estimated jackpot for the next drawing on Friday: $280 million. Good luck.

In culture, Al Sharpton is coming to a different kind of reality TV. The former presidential candidate will host a career makeover show on Spike TV. "I Hate my Job with Al Sharpton" is set to debut this fall.

In sports, Miami Dolphins tight end Randy McMichael has been charged with aggravated batter after a fight with his pregnant wife. His pregnant wife was also booked on domestic battery charges. If convicted, McMichael could face 15 years in prison.

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you this morning.

It is official. Saddam Hussein is in Iraqi hands now, at least legally. So, what are they saying about that this morning?

Our senior Arab affairs editor, Octavia Nasr, joins us on DAYBREAK with how the Arab networks are handling the handover, and they're already talking about it.

OCTAVIA NASR, CNN SENIOR ARAB AFFAIRS EDITOR: They're down in the streets talking to Iraqis, ordinary Iraqis, about what they think about this legal custody and whether Saddam Hussein, in their eyes, will get a fair trial.

Mixed reactions. Some are saying he shouldn't be tried. He wasn't as bad after all. Others are saying he should be hung, not once, not twice, but 20 times. And there are those who are saying this whole thing is an American film, and American movie, with the drama and the suspense and all that. It's...

COSTELLO: So, it's a setup?

NASR: Well, they're not saying that about the trial, but you have the skeptics, the people who say that this is all about humiliating Saddam Hussein more than really giving him a fair trial. This whole brouhaha about, you know, when he's going to be tried, you know, when he's going to be arraigned, you know, a lot of drama around it...

COSTELLO: But they have never...

NASR: ... that's what they're saying.

COSTELLO: But they have never witnessed anything like this, so they probably don't know quite how to take it.

NASR: Absolutely. And I think this is what's making it very interesting for Arabs in general and Arab media in particular. This is going to be the first Arab leader to be tried in a court of law. And as one journalist told me this morning, he said, what's the difference between Saddam Hussein and the other Arab leaders sitting on the thrones today? No big difference, except he is in custody, in U.S. custody, and he's going to be facing trial and the others are still ruling, and also friends of the U.S.

COSTELLO: Well, so, depending on what happens to Saddam Hussein, might that invoke more change? Might that cause more change in the Arab world?

NASR: You know, the Arab street, judging by what they're saying on Arab media, the Arab street seems to hope so. It looks like no matter where you stand on this issue, whether you support the trial or not, it seems that they're hoping that something good is going to come out of this -- transparency, democracy, a good life. Iraqis keep saying, we are looking forward to a good life, to jobs and schools and good things happening to us. So, there is a lot of hope on Arab streets.

COSTELLO: Going back to the trial itself, a lot of people say it won't be televised. But will it?

NASR: Well, we don't know. Arab media are just like us, so they're in the same boat. We're waiting to see how this whole thing is going to unfold. And I think this is where the comments about the American movie are coming from. It seems that the U.S. is holding all the cards on this. They're calling the shots. They're deciding.

And, you know, it's going to be major decision. Do you televise the trial? Do you carry it live? That will be a first, and that will be a big first if that happens.

So, the U.S. is holding all the cards and all the answers. Arab media are just like us...

COSTELLO: Waiting.

NASR: ... waiting to see how things are going to unfold.

COSTELLO: Octavia Nasr, thanks for joining DAYBREAK this morning.

NASR: You bet. Thank you.

COSTELLO: It's time for a little business buzz now.

Are you in the market for a new car? If you wait a few months you can buy a hybrid Accord.

Carrie Lee has more on that live from the Nasdaq Marketsite.

Interesting.

CARRIE LEE, CNN FINANCIAL NEWS: It is interesting, Carol, the 2005 version of the Accord no less. This, of course, is coming from Honda. They're going to sell this gas-electric hybrid sometime late next year. "USA Today" reporting that it's going to be marketed as a high-end sedan with more power than the gas model and better mileage.

Now, what you're seeing here is actually the Honda Insight. This is another hybrid from Honda, but the Accord is coming out, as I said, later in this year, going on the floor in November, December, for about $30,000. And that's roughly 3,000 more than the top-end Accord EX gas car.

So, people paying more for this or that's the expectation anyway. That's really true for hybrids across the board. There is such strong demand that they are including some premium pricing to these products.

Meanwhile, Honda forecasts about 32 miles per gallon in town, 38 on the highway. And, Carol, that's about the same as the smaller Civic four cylinder gasoline car. So, if you're interested in a hybrid car, you really have to think about the gas mileage. Is it going to outweigh those high premium sticker prices? And that's something that I think not a lot of people are aware of.

COSTELLO: It's interesting that the demand is getting high for hybrids, though.

LEE: There is a lot of demand. Well, because we've seen gasoline prices on the rise, of course. And people may be thinking, you know, I just want to do the right thing environmentally, particularly in California where there are all of those regulatory emissions laws and things like that.

By the way, Ford is coming out with its Escape hybrid later this summer. Toyota's Prius is already available. And they're working on a mid-sized Camry sedan in a hybrid version as well. So, more of these companies are coming out with these vehicles. We'll see if people snap them up.

COSTELLO: Yes, we'll see. Carrie Lee live from the Nasdaq Marketsite. Thank you.

When we come back, a community shocked by allegations of a scandalous affair. Did this teacher take part in a forbidden romance?

And, how does a Supreme Court ruling affect the way your family surfs the Web?

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Paula Jones, remember Paula Jones? She's the Arkansas woman whose sexual harassment suit against former President Clinton helped trigger his impeachment. In his new memoir, President Clinton once again denies harassing Jones. But in an exclusive interview with CNN's Paula Zahn, Jones says that's not the truth, and she is willing to debate the issue.

(BEGIN VIDEO CLIP)

PAULA JONES, FORMER PLAINTIFF: I'm just trying to prove that, you know, look, I'm not afraid of debating him, because I know what happened happened. He says it didn't happen, but it did happen. And I'm just saying that to prove a point that I'm not embarrassed or ashamed to be out and meet him eye to eye and tell him he knows he did what he did to me, but Bill Clinton would never agree to something like that. But I'm just putting that out there to let people know that I'm not afraid to debate him.

(END VIDEO CLIP)

COSTELLO: That really was Paula Jones. We swear.

In the meantime, President Clinton's book is setting record sales figures. It sold more than 400,000 copies since hitting the shelves last Tuesday and is expected to hit the one million mark today.

And there is more this morning to tell you about on the sex and scandal front. A young teacher in Florida is facing charges relating to her alleged relationship with a 14-year-old boy.

CNN's Bryan Todd has details for you.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): Her marriage and career just beginning, this 23-year-old remedial reading teacher is now at the center of a sordid case that swept through a huge Florida community.

Debra Beasley Lafave faces five counts in connection with her alleged relationship with a 14-year-old boy.

SUSAN LIVOTT, MARION COUNTY SHERIFF'S OFFICE: All the contact has been sexual in nature.

TODD: Police and sheriff's officers in two counties tell CNN Lafave met the boy at the school where she teaches, Greco Middle School in Temple Terrace, a suburb of Tampa. They say the boy was not her student, but she approached him at various school events, and earlier this month they began having sex, first at her apartment, then inside her portable classroom at the middle school.

Then, authorities say, the boy went on vacation at the home of his cousin, north of Tampa in Ocala, Florida, and Lafave followed him.

LIVOTT: And the teacher traveled to Ocala from her home and met with the student and also his cousin. And some of these activities took place in front of the cousin.

TODD: The activities in question, according to the Marion County Sheriff's Office, sex in the backseat of an SUV on at least two occasions while the boy's 15-year-old cousin was driving.

Police back in Temple Terrace were notified after the 14-year-old told his parents of the alleged encounters. Temple Terrace Police contacted the Marion County Sheriff's Office, and Debra Lafave has now been booked on four counts of lewd and lascivious battery and one count of lewd and lascivious exhibition. She's been released on bond from both counties.

Her attorney spoke to reporters this week.

JOHN FITZGIBBONS, DEBRA LAFAVE'S ATTORNEY: There is a presumption of innocence in this country for anyone charged with a crime. And we hope that everyone would listen to that.

TODD (on camera): In the Marion County Sheriff's probable cause affidavit, the boy told detectives that Lafave was -- quote -- "turned on by the fact that having sex with him was not allowed." Hillsborough County school officials tell CNN Debra Lafave is now on administrative leave with pay.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: A complicated issue to sort out this morning. The Supreme Court has ruled on a controversial law that was aimed at shielding children from questionable content on the Internet, as in pornography. The justices blocked the law and sent it back to the lower courts. The law did not deal with just online pornography, but also with more legitimate Web sites that cater to adult issues.

Writing for the 5-4 majority, Justice Anthony Kennedy says the law was potentially harmful to free speech.

So, it was a law supposed to protect children from harmful materials, such as porn, but it likely violates free speech. That's the ruling in a nutshell.

What is certain, it is confusing; hence, a little "Coffey Talk" about the Child Online Protection Act. Kendall Coffey, our legal analyst, joins us live from Miami.

The Bush administration pushed this through to protect children, Kendall. Can you explain what the law was supposed to be? What was it supposed to do?

KENDALL COFFEY, CNN LEGAL ANALYST: What the law was supposed to do is create the equivalent of a bouncer checking I.D. before a teenager can walk into a bar and set up that kind of protection mechanism with respect to Internet access. And, Carol, you're someone who still gets carded. I'm sure you know exactly what I'm talking.

COSTELLO: Oh, exactly. But to make it more clear for our audience, if a child attempted to go online at a porn site, there would be a credit card demanded. Is that right?

COFFEY: Yes, what this law did is create some kind of an access code requirement. It could be a credit card. It could be a password. And what the Supreme Court said is not that you're not entitled to have this bouncer checking the I.D., but that that may be the wrong say to do it.

That because of all of the advances in technology that it may actually be a much better protection for children, a much better way for parents to regulate what happens in their own home if there is instead the use of blocking and filtering software to keep the stuff out before it even reaches the home.

And the Supreme Court bases that on a commission that studied the issue very closely and indicated that these blocking and filtering software could be a lot more effective than some kind of a password, because kids can get credit cards, kids can get pass codes, and that that might actually be a less effective means for protecting the home.

COSTELLO: Doesn't this illustrate just how difficult it is to deal with the Internet?

COFFEY: It really does. And the fact that you had such a close decision, 5-4, where everybody agrees that it's a genuine concern, that Congress ought to be doing something about this, and yet the court is so unclear on the technology that they say that, look, after five years, whatever the record was in 1999 has to be re-examined. Let's find out what really works.

So, it's going to go back to the court, more experts, more analysis, and at some point we'll see what is going to be the identity, the electronic form of that bouncer.

COSTELLO: Kendall Coffey live on the phone from Miami making things a lot clearer for us this morning. Thank you.

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

The return of Saddam Hussein to Iraqi legal custody. How are people reacting to the news?

And, five times the parole board said no, but this morning a man convicted of killing his adopted daughter will walk free. We'll have a live report from the prison where that is about to take place.

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