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CNN Live At Daybreak

Saddam Gets His Day in Court

Aired July 01, 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: The former dictator of Iraq gets his first day in court.
It is Thursday, July 1.

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 right now.

History in the making this morning. Saddam Hussein has his first court appearance. The deposed leader and 11 top members of his regime will be arraigned before an Iraqi judge. We will take you to Baghdad for the latest in just about a minute and a half.

Big cheers at NASA for another historic event. The international Cassini probe is now the first spacecraft ever to orbit Saturn. It happened just a few hours ago. The Cassini should give scientists a tour of the giant planet for the next four years.

In money news, interest rates are up. The Fed's raised a key rate a quarter percent in an effort to keep the economy and inflation stable. It's the first rate hike in four years.

In culture, New Jersey unveils the winning design for their planned 9/11 memorial. It commemorates the more than 600 New Jersey residents killed in the attacks. The memorial, called Empty Sky, will be erected in Liberty State Park. That's just across the Hudson River from Manhattan.

In sports, Serena Williams has advanced to another Wimbledon semifinals with a dominating win over Jennifer Capriati. The straight sets victory lasted less than 45 minutes.

CHAD MYERS, CNN CORRESPONDENT: Oh, my goodness.

COSTELLO: Oh, poor Jennifer. Can you believe it?

MYERS: I can't believe that, not straight sets. Wow! Dominating -- well, I mean, well, she was hitting the ball 126 miles an hour the day before yesterday.

COSTELLO: That's crazy.

MYERS: I can't even see that.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: From powerful dictator to powerless prisoner -- Saddam Hussein is about to have his first court appearance and his first public appearance since being captured last December. He's scheduled to be in court just about an hour from now.

Let's take you live to Baghdad now and Anderson Cooper -- good morning, Anderson.

ANDERSON COOPER, CNN CORRESPONDENT: Good morning, Carol.

It's going to be an exciting morning here for Iraqis, for the world -- their first glimpse of Saddam Hussein since he was taken captive back in December. We are told from sources that Saddam Hussein will be clean shaven. He will be having -- he has a mustache, but he has shaved off that beard that we've all grown used to seeing in those images of him being poked and prodded by medical authorities when he was first detained.

The court hearing today will take place in several hours. We can't really be specific on the exact time. For security reasons, we've agreed not to specify exactly what will take place. We do know Saddam Hussein will be brought to the court. Iraqi police will handle him there. He will be -- appear before a single judge. Some members of media will be there, as well. There will be cameras. We'll get -- as soon as we get those images we will show them to you.

He will be told his rights -- the right to legal counsel, the right to have counsel appointed for him if he can't afford it, perhaps even the right to represent himself.

The actual trial, however, will not start for many months. There's still a lot of evidence to be gathered. It's going to take quite a long time. Prime Minister Allawi of -- the new interim prime minister here in Iraq -- told the Iraqi people they are going to have to be patient, but justice will be done -- Carol.

COSTELLO: Yes, the most fascinating thing, I think, for the Iraqi people will be actually seeing Saddam Hussein. This won't be broadcast live, but will pictures be released to the public soon after?

COOPER: They will, very soon after. We, of course, will bring them to you as soon as we get them. Not only -- I mean what a difference this is going to be, a different Saddam Hussein -- in handcuffs on a perp walk, basically. You will see him being brought into the courtroom. You will see him in the courtroom. You will see him exiting the courtroom, as well.

He will not be handcuffed, we are told, when he's actually inside the court, facing the judge. But he will be handcuffed, apparently handcuffs attached to his waist, as he is brought in. He will be wearing civilian clothes, we are also told. It will be a fascinating image, if nothing less. And also to see how he deports himself, what he says.

What we learned the other day from one source was that when he was told of what would happen just yesterday, he had some questions, but he was told by Salem Chalabi, the director of the Iraqi special tribunal, that that was not the time to ask questions, that he could ask questions in court.

So we'll be watching very carefully to see what sort of questions he has -- Carol.

COSTELLO: It should be very fascinating.

And I know Christiane Amanpour is inside the courtroom. Anderson, you're out, so we're covered.

We'll get back to you.

Thank you very much.

Anderson Cooper live from Baghdad this morning.

This is not Saddam Hussein's first time facing Iraqi justice. He was sentenced to death for political activities against the Iraqi regime way back in 1960. Back then, he escaped to Syria and Egypt and then he finished up college in Egypt in 1962. Saddam was elected president of Iraq in July of 1979. He initiated war with Iran one year later and then he invaded Kuwait in 1990.

The deposed leader was captured on December 13, 2003. U.S. troops found him in an underground hole northwest of Tikrit. The hole was located near the Tigris River, within view of one of his palaces.

The focus now on this morning's arraignment and the upcoming trial. What can we expect?

For some answers, we turn to international law expert Jonathan Goldberg.

He joins us live from London.

Good morning, Jonathan.

JONATHAN GOLDBERG, INTERNATIONAL LAW EXPERT: Hello.

COSTELLO: We heard a little bit of the process from Anderson Cooper. But tell us exactly what this will be like. Is it sort of like an American arraignment?

GOLDBERG: Today, I think, will purely be a preliminary hearing. Basically, identify yourself, these are the charges, go away and come back for trial in a long time.

COSTELLO: Do you think that Saddam Hussein will get the opportunity to say anything? GOLDBERG: Well, I imagine just to identify himself. I doubt if they will ask him if he's guilty or not guilty today because, of course, the charges are yet to be formulated. This, I think, is a purely technical preliminary hearing.

COSTELLO: And when he finally goes into the court process, this is called a special tribunal.

What exactly is that?

GOLDBERG: Well, of course, there's a bit of sock it and see about all this, because the Iraqis have got to create this tribunal and, indeed, to some extent, they have to create the legal code on which to try Saddam, because you have to remember that in his 24 years in power and effectively 35 years as the strongman in Iraq, he's wrecked the legal system. And so we just don't quite know how this is going to work. The eyes of the world are going to be upon it and doubtless they'll do their best to make a trial that's acceptable by international standards.

COSTELLO: Well, you know, you say that and I have the image of lawyers in Iraq blowing dust off legal books and legal documents, trying to figure out a way to try this guy.

GOLDBERG: Well, I think the problem is going to be not how to try him and not what code according to which to try him. That part's easy. The problem is going to come in finding witnesses who will dare to stand up and give evidence against him, bearing in mind the risk of retaliation.

COSTELLO: So you think that fear is still out there, even though he's in handcuffs? There'll be pictures of that broadcast all over Iraq, I'm sure.

GOLDBERG: Yes, of course, but look at the civil war that's going on there. He still has his supporters. He still has his potential power base. And just as policemen and so forth are frightened for their families of being bombed, you can imagine what fear these witnesses would have.

But I think that what is going through the minds of the Iraqi prosecutors is this -- they are going to hope that they can do a plea deal with some of his once trusted lieutenants, possibly some of the other 12 who are appearing today. Just to take a name, somebody like Tariq Aziz. Just suppose he could be persuaded, in exchange for his life, to give evidence against Saddam. Well then you would have a tremendous case. And I'm certain that's the sort of ploy that's being considered right now.

COSTELLO: Fascinating.

Jonathan Goldberg, thank you for your expertise, live from London this something.

To other developments in Iraq now in our situation report. Two deadly explosions in Baghdad this morning. The first blast killed two civilians and wounded three others, including an Iraqi official. Less than an hour later, a roadside bomb killed three civilians. That blast was apparently intended for an Iraqi police vehicle.

Washington has upped the bounty on the head of Abu Musab al- Zarqawi. The State Department is now offering $25 million for information leading to his capture. That's the same amount offered for Osama bin Laden.

And a date is now set. In just six days, more than 5,600 Army Reserve soldiers will begin getting marching orders. The seldom used troops of the Individual Ready Reserve will be deployed to Iraq and Afghanistan.

Saddam Hussein goes before an international court of law. We will get some expert insight on that procedure from Frank Rabino, the criminal defense attorney who represented Manuel Noriega, among others. That's just ahead on CNN's "American Morning." And that will happen in the 8:00 a.m. Eastern hour.

The Department of Homeland Security is not secure enough. A report by the Department's inspector general says DHS cannot protect its wireless communication network. Investigators say sensitive information transmitted by wireless communications can be monitored, accessed or misused. Homeland security officials say they're already taking steps to fix those security lapses.

Security measures at the nation's seaports have undergone major changes since September 11.

CNN's Deborah Feyerick takes a look at how ships coming into the United States are inspected for dangerous cargo.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): At a busy New York port, on an international cargo ship, six flights below deck, U.S. Customs inspectors search for weapons of mass destruction.

KEVIN MCCABE, U.S. CUSTOMS AND BORDER PROTECTION: Over 90 percent of what we do is based on finding either a weapon or a terrorist weapon or a component of a terrorist weapon.

FEYERICK: Immediately after 9/11, when rumors reached a fevered pitch, inspectors here got information a nuclear bomb had slipped into the United States in a cargo container sitting on the dock. The information was flawed, but as it turned out, not the concern.

(on camera): Do you think that if that container with the alleged nuclear device came into port now, that you would be able to find it in all of these containers?

MICHAEL HEGLER, U.S. CUSTOMS AND BORDER PROTECTION: I feel more comfortable now in the technology and the people we have.

It's a little bit of radium 226. That's why it was going off. FEYERICK (voice-over): Every year, more than 1.2 million containers are unloaded in New York area ports. Inspectors here say they manually check about two percent, those targeted as high risk, from countries like Thailand or Pakistan, for example.

(on camera): What's not to say that components of a weapon of mass destruction have not made it into the United States?

MCCABE: We use all types of detectors. We have radiation detectors, x-ray imaging, gamma imaging, vapor tracers, ion track machines.

FEYERICK (voice-over): Counter-terror experts believe if detonated, a nuclear or radiological weapon could shut down a port for weeks, if not months, fueling front line inspectors like Kevin McCabe and Michael Hegler to keep searching.

HEGLER: It would be tremendously devastating for the shipping community, the residents around here, the terminals. Our job, though, is to go on these ships and take that threat away from going into the port.

FEYERICK: A threat once unthinkable.

UNIDENTIFIED MALE: Nothing found.

UNIDENTIFIED MALE: All right.

UNIDENTIFIED MALE: All right, safe.

FEYERICK: Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

COSTELLO: Some of the other stories we're working on for you this Thursday morning, don't end up celebrating your Fourth of July in the emergency room. Yes, it's that yearly demonstration. We'll show you how to stay safe from those awful fireworks.

And world leaders take a firsthand look at the human crisis in Sudan and try to figure out how they can help.

And the stresses of war don't end on the battlefield. We'll tell you how the military is helping to keep troops healthy after they get home.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:15 Eastern.

Here's what's all new this morning.

Saddam Hussein will be in court today to be charged with crimes against humanity. The former dictator and 11 of his associates will make their first appearance in public since their captures.

In Hong Kong, nearly 100,000 people marched through the city to voice their demands for democracy. Today is the seventh anniversary of Hong Kong's hand over from British to Chinese control.

In money news, a new threat for people who do their banking online. An as yet unnamed bug similar to Spy Ware captures a user's keystrokes. The Net attack is launched through pop up ads.

In culture, Howard Stern is fighting back. The shock jock announced the addition of nine more radio stations to his syndication lineup. They include stations in four markets where he had previously been pulled off the air by Clear Channel.

In sports, volatile NASCAR driver Tony Stewart was fined $50,000 and docked 25 driver points for an altercation after last Sunday's race. Stewart grabbed and hit another driver while he was still in the car. What was that about -- Chad.

MYERS: I didn't even hear about that, Carol. I'll have to go to nascar.com and check it out. I did not see it.

COSTELLO: Oh, well, he's in big trouble.

MYERS: Well, you know what? There really wasn't that much going on the on race track that I saw. I mean there was that little bump there that you saw there, but I don't know that that was anybody other than just a racing incident. There are two people going from the same track. I will figure out who he was smacking and I'll tell you in a few minutes. Not unusual, though.

(WEATHER REPORT)

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

Are you in the market for a house or a car? Well, those days of super cheap mortgages and auto loans are fleeing, now that the Fed has bumped up interest rates.

CNN's Jonathan Freed has a typical scenario for you.

(BEGIN VIDEOTAPE)

MICHAEL KARNUTH, HOME BUYER: Now it's finished?

UNIDENTIFIED MALE: Yes.

JONATHAN FREED, CNN CORRESPONDENT (voice-over): It's the home they wanted, it's the home they bought. But now Michael Karnuth and his fiancee aren't convinced it's a home they can afford.

KARNUTH: We know that as rates go up, it's -- it makes it more difficult and a little bit stressful in terms of what the monthly payments are going to be.

FREED: The couple has been waiting to lock in their mortgage rate. Now, they say they're kicking themselves.

CARMEN ECHEVERRIA, HOME BUYER: I wish we had made a quicker decision, but unfortunately we have to deal with what we've got now.

FREED: They are not alone. Beth Ryan is a realtor who suddenly finds herself having to push clients to make a decision. BETH RYAN, REAL ESTATE AGENT: Seventy-five percent are hesitating, which is a huge number.

FREED: Ryan says home buyers have been spoiled with rates at four or five percent and now...

RYAN: And some of them are just deciding maybe I'll wait another year or I'll keep renting or maybe I haven't sold my place, maybe I'll wait.

FREED: And they're not just waiting in real estate. This car dealership isn't used to hearing hesitation in its customers' voices, either.

PHIL DELOZANO, AUTO DEALER: We're noticing some people who are saying let me just sit back and wait just to see what's going to happen.

FREED: Back at the house, as the couple continued their inspection, the news they were hoping wouldn't happen did.

(on camera): I just received word here Federal Reserve boosts key short-term interest rate by one quarter percentage point.

You haven't locked in yet. What's going through your mind?

KARNUTH: I'm hoping that the market's going to, you know, react favorably to that news and the long-term rates are going to come down a little bit.

FREED (voice-over): But at least initially, the mortgage markets are headed up. And Michael Karnuth admits he's probably being overly optimistic.

Jonathan Freed, CNN, Chicago.

(END VIDEOTAPE)

COSTELLO: So, the rates are changing on this side of the pond. Is that going to be good news or bad news overseas?

For the answer to that, we turn to our Mallika Kapur.

She's checking the numbers for us live in London -- good morning.

MALLIKA KAPUR, CNN CORRESPONDENT: Good morning, Carol.

Well, now that we have one central bank meeting out of the way and one decision of -- on interest rates out of the way, the European markets are turning their attention to another central bank meeting. Later on today, we have a meeting by the European Central Bank. But unlike the Fed, the European Central Bank isn't expected to raise interest rates. Interest rates are expected to stay steady at two percent.

This is because, analysts point out, the Euro zone is -- we're getting a lot of very conflicting and mixed signals about economic recovery in various parts of the euro zone.

But European markets reacting very well to the decision by the U.S. Federal Reserve to raise interest rates. Quite a nice rally over here in Europe today.

At the moment, Germany's DAX doing the best. It's up more than one percent, a nice relief rally inspired by gains on Wall Street and also by gains in Asian trading overnight.

Now, some of the sectors and stocks in the world today include that of Sainsbury. This is Britain's third largest grocery chain. And as you can see, its stock is down quite a bit at the moment, down six percent. Its stock was down about eight and a half percent at the start of trading today, and that's after the grocery company issued its second profit warning in four months.

It also said that its chairman is stepping down, so investors clearly unnerved by that news and sending its stock down six percent -- Carol, back to you.

COSTELLO: Mallika Kapur live from London.

Thank you.

Celebrating the red, white and blue could be a bummer. As the fireworks fly this Fourth of July, we'll tell you how you can beware of the boom. We'll have more on that story just ahead.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: Are you getting ready for the whiz bang of fireworks this weekend? While a lot of you head out to watch large fireworks displays for the Fourth of July, some others will set off their own displays in the back yard. But remember, please remember to be careful.

CNN's Julie Vallese has some tips on how to avoid the boom.

(BEGIN VIDEOTAPE)

JULIE VALLESE, CNN CORRESPONDENT (voice-over): Fireworks that come in a plain brown wrapper or have a name like M-80, M-1000 or quarter stick, are illegal and can be very dangerous.

LEWIS RADEN, BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES: The Fourth of July is time for us to celebrate the founding of our nation. But for many, the celebration can become a day of distress, concern or even bereavement. Every year, people are injured, severely maimed and sometimes lose their lives.

VALLESE: According to the Consumer Products Safety Commission, last year there were 9,300 emergency room visits for firework related injuries, about 40 percent from illegal fireworks. But even legal fireworks can be dangerous. It's usually consumer misuse, experts say, that cause injuries.

HAL STRATTON, CHAIRMAN, CONSUMER PRODUCTS SAFETY COMMISSION: There are a lot of legal fireworks sold in this country. People love them. People are going to use them. Our message today is please be safe and please act legally.

VALLESE (on camera): Come to a roadside stand like this one and more than likely what's being sold is legal. To know for sure, check the packaging.

JULIE HECKMAN, AMERICAN PYROTECHNICS ASSOCIATION: Legal fireworks will have a colorful label, instructions for use and they'll contain the name of the manufacturer, as well as a caution warning. But we encourage the public to stay away from anything that's not labeled.

VALLESE (voice-over): Laws vary from state to state and city to city about firework use, so even before buying legal fireworks, check to make sure it's legal to set them off.

In Washington, I'm Julie Vallese.

(END VIDEOTAPE)

COSTELLO: And while most injuries come from firecrackers, hundreds of people are injured by the usually harmless sparklers, if you can believe that. Coming up in our next hour, we'll get more tips from one of the top safety experts in this country. So put away your lighters, because I'm sure you have them out now. And stay tuned to DAYBREAK.

Time for our DAYBREAK Eye-Openers now.

A wandering 2-year-old girl is found safe thanks to the family dog. Daisy Smith was found with her dog about a mile away from her home. They'd been missing for about 13 hours. Searchers followed the dog's tracks and found the pair on the banks of the Ohio River. But it took a while before the dog would let emergency workers get near the girl to see that she was OK.

Remember the guy who collected one million pennies? How could you forget him? Well, he can't seem to get rid of his million pennies. The bank and the U.S. Mint want to charge Ron England a fee for cashing in his $10,000 worth of copper. England saved pennies for 30 years to win a bet against his brother. His brother, by the way, still hasn't paid up.

Tracy Silva can certainly carry a tune. She beat out more than 700 other singers for a chance to perform with the Boston Pops during their annual Fourth of July concert. Congrats. Here's what's all new in the next half hour of DAYBREAK.

Ah, they're happy at NASA. After a journey of nearly seven years, the Cassini spacecraft is running rings around Saturn.

Also, tell it to the judge. In handcuffs and heavily guarded, an ousted dictator is in the dock in Iraq. We'll hear some of the charges against him in a live report.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

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Aired July 1, 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: The former dictator of Iraq gets his first day in court.
It is Thursday, July 1.

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 right now.

History in the making this morning. Saddam Hussein has his first court appearance. The deposed leader and 11 top members of his regime will be arraigned before an Iraqi judge. We will take you to Baghdad for the latest in just about a minute and a half.

Big cheers at NASA for another historic event. The international Cassini probe is now the first spacecraft ever to orbit Saturn. It happened just a few hours ago. The Cassini should give scientists a tour of the giant planet for the next four years.

In money news, interest rates are up. The Fed's raised a key rate a quarter percent in an effort to keep the economy and inflation stable. It's the first rate hike in four years.

In culture, New Jersey unveils the winning design for their planned 9/11 memorial. It commemorates the more than 600 New Jersey residents killed in the attacks. The memorial, called Empty Sky, will be erected in Liberty State Park. That's just across the Hudson River from Manhattan.

In sports, Serena Williams has advanced to another Wimbledon semifinals with a dominating win over Jennifer Capriati. The straight sets victory lasted less than 45 minutes.

CHAD MYERS, CNN CORRESPONDENT: Oh, my goodness.

COSTELLO: Oh, poor Jennifer. Can you believe it?

MYERS: I can't believe that, not straight sets. Wow! Dominating -- well, I mean, well, she was hitting the ball 126 miles an hour the day before yesterday.

COSTELLO: That's crazy.

MYERS: I can't even see that.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: From powerful dictator to powerless prisoner -- Saddam Hussein is about to have his first court appearance and his first public appearance since being captured last December. He's scheduled to be in court just about an hour from now.

Let's take you live to Baghdad now and Anderson Cooper -- good morning, Anderson.

ANDERSON COOPER, CNN CORRESPONDENT: Good morning, Carol.

It's going to be an exciting morning here for Iraqis, for the world -- their first glimpse of Saddam Hussein since he was taken captive back in December. We are told from sources that Saddam Hussein will be clean shaven. He will be having -- he has a mustache, but he has shaved off that beard that we've all grown used to seeing in those images of him being poked and prodded by medical authorities when he was first detained.

The court hearing today will take place in several hours. We can't really be specific on the exact time. For security reasons, we've agreed not to specify exactly what will take place. We do know Saddam Hussein will be brought to the court. Iraqi police will handle him there. He will be -- appear before a single judge. Some members of media will be there, as well. There will be cameras. We'll get -- as soon as we get those images we will show them to you.

He will be told his rights -- the right to legal counsel, the right to have counsel appointed for him if he can't afford it, perhaps even the right to represent himself.

The actual trial, however, will not start for many months. There's still a lot of evidence to be gathered. It's going to take quite a long time. Prime Minister Allawi of -- the new interim prime minister here in Iraq -- told the Iraqi people they are going to have to be patient, but justice will be done -- Carol.

COSTELLO: Yes, the most fascinating thing, I think, for the Iraqi people will be actually seeing Saddam Hussein. This won't be broadcast live, but will pictures be released to the public soon after?

COOPER: They will, very soon after. We, of course, will bring them to you as soon as we get them. Not only -- I mean what a difference this is going to be, a different Saddam Hussein -- in handcuffs on a perp walk, basically. You will see him being brought into the courtroom. You will see him in the courtroom. You will see him exiting the courtroom, as well.

He will not be handcuffed, we are told, when he's actually inside the court, facing the judge. But he will be handcuffed, apparently handcuffs attached to his waist, as he is brought in. He will be wearing civilian clothes, we are also told. It will be a fascinating image, if nothing less. And also to see how he deports himself, what he says.

What we learned the other day from one source was that when he was told of what would happen just yesterday, he had some questions, but he was told by Salem Chalabi, the director of the Iraqi special tribunal, that that was not the time to ask questions, that he could ask questions in court.

So we'll be watching very carefully to see what sort of questions he has -- Carol.

COSTELLO: It should be very fascinating.

And I know Christiane Amanpour is inside the courtroom. Anderson, you're out, so we're covered.

We'll get back to you.

Thank you very much.

Anderson Cooper live from Baghdad this morning.

This is not Saddam Hussein's first time facing Iraqi justice. He was sentenced to death for political activities against the Iraqi regime way back in 1960. Back then, he escaped to Syria and Egypt and then he finished up college in Egypt in 1962. Saddam was elected president of Iraq in July of 1979. He initiated war with Iran one year later and then he invaded Kuwait in 1990.

The deposed leader was captured on December 13, 2003. U.S. troops found him in an underground hole northwest of Tikrit. The hole was located near the Tigris River, within view of one of his palaces.

The focus now on this morning's arraignment and the upcoming trial. What can we expect?

For some answers, we turn to international law expert Jonathan Goldberg.

He joins us live from London.

Good morning, Jonathan.

JONATHAN GOLDBERG, INTERNATIONAL LAW EXPERT: Hello.

COSTELLO: We heard a little bit of the process from Anderson Cooper. But tell us exactly what this will be like. Is it sort of like an American arraignment?

GOLDBERG: Today, I think, will purely be a preliminary hearing. Basically, identify yourself, these are the charges, go away and come back for trial in a long time.

COSTELLO: Do you think that Saddam Hussein will get the opportunity to say anything? GOLDBERG: Well, I imagine just to identify himself. I doubt if they will ask him if he's guilty or not guilty today because, of course, the charges are yet to be formulated. This, I think, is a purely technical preliminary hearing.

COSTELLO: And when he finally goes into the court process, this is called a special tribunal.

What exactly is that?

GOLDBERG: Well, of course, there's a bit of sock it and see about all this, because the Iraqis have got to create this tribunal and, indeed, to some extent, they have to create the legal code on which to try Saddam, because you have to remember that in his 24 years in power and effectively 35 years as the strongman in Iraq, he's wrecked the legal system. And so we just don't quite know how this is going to work. The eyes of the world are going to be upon it and doubtless they'll do their best to make a trial that's acceptable by international standards.

COSTELLO: Well, you know, you say that and I have the image of lawyers in Iraq blowing dust off legal books and legal documents, trying to figure out a way to try this guy.

GOLDBERG: Well, I think the problem is going to be not how to try him and not what code according to which to try him. That part's easy. The problem is going to come in finding witnesses who will dare to stand up and give evidence against him, bearing in mind the risk of retaliation.

COSTELLO: So you think that fear is still out there, even though he's in handcuffs? There'll be pictures of that broadcast all over Iraq, I'm sure.

GOLDBERG: Yes, of course, but look at the civil war that's going on there. He still has his supporters. He still has his potential power base. And just as policemen and so forth are frightened for their families of being bombed, you can imagine what fear these witnesses would have.

But I think that what is going through the minds of the Iraqi prosecutors is this -- they are going to hope that they can do a plea deal with some of his once trusted lieutenants, possibly some of the other 12 who are appearing today. Just to take a name, somebody like Tariq Aziz. Just suppose he could be persuaded, in exchange for his life, to give evidence against Saddam. Well then you would have a tremendous case. And I'm certain that's the sort of ploy that's being considered right now.

COSTELLO: Fascinating.

Jonathan Goldberg, thank you for your expertise, live from London this something.

To other developments in Iraq now in our situation report. Two deadly explosions in Baghdad this morning. The first blast killed two civilians and wounded three others, including an Iraqi official. Less than an hour later, a roadside bomb killed three civilians. That blast was apparently intended for an Iraqi police vehicle.

Washington has upped the bounty on the head of Abu Musab al- Zarqawi. The State Department is now offering $25 million for information leading to his capture. That's the same amount offered for Osama bin Laden.

And a date is now set. In just six days, more than 5,600 Army Reserve soldiers will begin getting marching orders. The seldom used troops of the Individual Ready Reserve will be deployed to Iraq and Afghanistan.

Saddam Hussein goes before an international court of law. We will get some expert insight on that procedure from Frank Rabino, the criminal defense attorney who represented Manuel Noriega, among others. That's just ahead on CNN's "American Morning." And that will happen in the 8:00 a.m. Eastern hour.

The Department of Homeland Security is not secure enough. A report by the Department's inspector general says DHS cannot protect its wireless communication network. Investigators say sensitive information transmitted by wireless communications can be monitored, accessed or misused. Homeland security officials say they're already taking steps to fix those security lapses.

Security measures at the nation's seaports have undergone major changes since September 11.

CNN's Deborah Feyerick takes a look at how ships coming into the United States are inspected for dangerous cargo.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): At a busy New York port, on an international cargo ship, six flights below deck, U.S. Customs inspectors search for weapons of mass destruction.

KEVIN MCCABE, U.S. CUSTOMS AND BORDER PROTECTION: Over 90 percent of what we do is based on finding either a weapon or a terrorist weapon or a component of a terrorist weapon.

FEYERICK: Immediately after 9/11, when rumors reached a fevered pitch, inspectors here got information a nuclear bomb had slipped into the United States in a cargo container sitting on the dock. The information was flawed, but as it turned out, not the concern.

(on camera): Do you think that if that container with the alleged nuclear device came into port now, that you would be able to find it in all of these containers?

MICHAEL HEGLER, U.S. CUSTOMS AND BORDER PROTECTION: I feel more comfortable now in the technology and the people we have.

It's a little bit of radium 226. That's why it was going off. FEYERICK (voice-over): Every year, more than 1.2 million containers are unloaded in New York area ports. Inspectors here say they manually check about two percent, those targeted as high risk, from countries like Thailand or Pakistan, for example.

(on camera): What's not to say that components of a weapon of mass destruction have not made it into the United States?

MCCABE: We use all types of detectors. We have radiation detectors, x-ray imaging, gamma imaging, vapor tracers, ion track machines.

FEYERICK (voice-over): Counter-terror experts believe if detonated, a nuclear or radiological weapon could shut down a port for weeks, if not months, fueling front line inspectors like Kevin McCabe and Michael Hegler to keep searching.

HEGLER: It would be tremendously devastating for the shipping community, the residents around here, the terminals. Our job, though, is to go on these ships and take that threat away from going into the port.

FEYERICK: A threat once unthinkable.

UNIDENTIFIED MALE: Nothing found.

UNIDENTIFIED MALE: All right.

UNIDENTIFIED MALE: All right, safe.

FEYERICK: Deborah Feyerick, CNN, New York.

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COSTELLO: Some of the other stories we're working on for you this Thursday morning, don't end up celebrating your Fourth of July in the emergency room. Yes, it's that yearly demonstration. We'll show you how to stay safe from those awful fireworks.

And world leaders take a firsthand look at the human crisis in Sudan and try to figure out how they can help.

And the stresses of war don't end on the battlefield. We'll tell you how the military is helping to keep troops healthy after they get home.

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COSTELLO: Your news, money, weather and sports.

It is 5:15 Eastern.

Here's what's all new this morning.

Saddam Hussein will be in court today to be charged with crimes against humanity. The former dictator and 11 of his associates will make their first appearance in public since their captures.

In Hong Kong, nearly 100,000 people marched through the city to voice their demands for democracy. Today is the seventh anniversary of Hong Kong's hand over from British to Chinese control.

In money news, a new threat for people who do their banking online. An as yet unnamed bug similar to Spy Ware captures a user's keystrokes. The Net attack is launched through pop up ads.

In culture, Howard Stern is fighting back. The shock jock announced the addition of nine more radio stations to his syndication lineup. They include stations in four markets where he had previously been pulled off the air by Clear Channel.

In sports, volatile NASCAR driver Tony Stewart was fined $50,000 and docked 25 driver points for an altercation after last Sunday's race. Stewart grabbed and hit another driver while he was still in the car. What was that about -- Chad.

MYERS: I didn't even hear about that, Carol. I'll have to go to nascar.com and check it out. I did not see it.

COSTELLO: Oh, well, he's in big trouble.

MYERS: Well, you know what? There really wasn't that much going on the on race track that I saw. I mean there was that little bump there that you saw there, but I don't know that that was anybody other than just a racing incident. There are two people going from the same track. I will figure out who he was smacking and I'll tell you in a few minutes. Not unusual, though.

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

Are you in the market for a house or a car? Well, those days of super cheap mortgages and auto loans are fleeing, now that the Fed has bumped up interest rates.

CNN's Jonathan Freed has a typical scenario for you.

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MICHAEL KARNUTH, HOME BUYER: Now it's finished?

UNIDENTIFIED MALE: Yes.

JONATHAN FREED, CNN CORRESPONDENT (voice-over): It's the home they wanted, it's the home they bought. But now Michael Karnuth and his fiancee aren't convinced it's a home they can afford.

KARNUTH: We know that as rates go up, it's -- it makes it more difficult and a little bit stressful in terms of what the monthly payments are going to be.

FREED: The couple has been waiting to lock in their mortgage rate. Now, they say they're kicking themselves.

CARMEN ECHEVERRIA, HOME BUYER: I wish we had made a quicker decision, but unfortunately we have to deal with what we've got now.

FREED: They are not alone. Beth Ryan is a realtor who suddenly finds herself having to push clients to make a decision. BETH RYAN, REAL ESTATE AGENT: Seventy-five percent are hesitating, which is a huge number.

FREED: Ryan says home buyers have been spoiled with rates at four or five percent and now...

RYAN: And some of them are just deciding maybe I'll wait another year or I'll keep renting or maybe I haven't sold my place, maybe I'll wait.

FREED: And they're not just waiting in real estate. This car dealership isn't used to hearing hesitation in its customers' voices, either.

PHIL DELOZANO, AUTO DEALER: We're noticing some people who are saying let me just sit back and wait just to see what's going to happen.

FREED: Back at the house, as the couple continued their inspection, the news they were hoping wouldn't happen did.

(on camera): I just received word here Federal Reserve boosts key short-term interest rate by one quarter percentage point.

You haven't locked in yet. What's going through your mind?

KARNUTH: I'm hoping that the market's going to, you know, react favorably to that news and the long-term rates are going to come down a little bit.

FREED (voice-over): But at least initially, the mortgage markets are headed up. And Michael Karnuth admits he's probably being overly optimistic.

Jonathan Freed, CNN, Chicago.

(END VIDEOTAPE)

COSTELLO: So, the rates are changing on this side of the pond. Is that going to be good news or bad news overseas?

For the answer to that, we turn to our Mallika Kapur.

She's checking the numbers for us live in London -- good morning.

MALLIKA KAPUR, CNN CORRESPONDENT: Good morning, Carol.

Well, now that we have one central bank meeting out of the way and one decision of -- on interest rates out of the way, the European markets are turning their attention to another central bank meeting. Later on today, we have a meeting by the European Central Bank. But unlike the Fed, the European Central Bank isn't expected to raise interest rates. Interest rates are expected to stay steady at two percent.

This is because, analysts point out, the Euro zone is -- we're getting a lot of very conflicting and mixed signals about economic recovery in various parts of the euro zone.

But European markets reacting very well to the decision by the U.S. Federal Reserve to raise interest rates. Quite a nice rally over here in Europe today.

At the moment, Germany's DAX doing the best. It's up more than one percent, a nice relief rally inspired by gains on Wall Street and also by gains in Asian trading overnight.

Now, some of the sectors and stocks in the world today include that of Sainsbury. This is Britain's third largest grocery chain. And as you can see, its stock is down quite a bit at the moment, down six percent. Its stock was down about eight and a half percent at the start of trading today, and that's after the grocery company issued its second profit warning in four months.

It also said that its chairman is stepping down, so investors clearly unnerved by that news and sending its stock down six percent -- Carol, back to you.

COSTELLO: Mallika Kapur live from London.

Thank you.

Celebrating the red, white and blue could be a bummer. As the fireworks fly this Fourth of July, we'll tell you how you can beware of the boom. We'll have more on that story just ahead.

This is DAYBREAK for Thursday.

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COSTELLO: Are you getting ready for the whiz bang of fireworks this weekend? While a lot of you head out to watch large fireworks displays for the Fourth of July, some others will set off their own displays in the back yard. But remember, please remember to be careful.

CNN's Julie Vallese has some tips on how to avoid the boom.

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JULIE VALLESE, CNN CORRESPONDENT (voice-over): Fireworks that come in a plain brown wrapper or have a name like M-80, M-1000 or quarter stick, are illegal and can be very dangerous.

LEWIS RADEN, BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES: The Fourth of July is time for us to celebrate the founding of our nation. But for many, the celebration can become a day of distress, concern or even bereavement. Every year, people are injured, severely maimed and sometimes lose their lives.

VALLESE: According to the Consumer Products Safety Commission, last year there were 9,300 emergency room visits for firework related injuries, about 40 percent from illegal fireworks. But even legal fireworks can be dangerous. It's usually consumer misuse, experts say, that cause injuries.

HAL STRATTON, CHAIRMAN, CONSUMER PRODUCTS SAFETY COMMISSION: There are a lot of legal fireworks sold in this country. People love them. People are going to use them. Our message today is please be safe and please act legally.

VALLESE (on camera): Come to a roadside stand like this one and more than likely what's being sold is legal. To know for sure, check the packaging.

JULIE HECKMAN, AMERICAN PYROTECHNICS ASSOCIATION: Legal fireworks will have a colorful label, instructions for use and they'll contain the name of the manufacturer, as well as a caution warning. But we encourage the public to stay away from anything that's not labeled.

VALLESE (voice-over): Laws vary from state to state and city to city about firework use, so even before buying legal fireworks, check to make sure it's legal to set them off.

In Washington, I'm Julie Vallese.

(END VIDEOTAPE)

COSTELLO: And while most injuries come from firecrackers, hundreds of people are injured by the usually harmless sparklers, if you can believe that. Coming up in our next hour, we'll get more tips from one of the top safety experts in this country. So put away your lighters, because I'm sure you have them out now. And stay tuned to DAYBREAK.

Time for our DAYBREAK Eye-Openers now.

A wandering 2-year-old girl is found safe thanks to the family dog. Daisy Smith was found with her dog about a mile away from her home. They'd been missing for about 13 hours. Searchers followed the dog's tracks and found the pair on the banks of the Ohio River. But it took a while before the dog would let emergency workers get near the girl to see that she was OK.

Remember the guy who collected one million pennies? How could you forget him? Well, he can't seem to get rid of his million pennies. The bank and the U.S. Mint want to charge Ron England a fee for cashing in his $10,000 worth of copper. England saved pennies for 30 years to win a bet against his brother. His brother, by the way, still hasn't paid up.

Tracy Silva can certainly carry a tune. She beat out more than 700 other singers for a chance to perform with the Boston Pops during their annual Fourth of July concert. Congrats. Here's what's all new in the next half hour of DAYBREAK.

Ah, they're happy at NASA. After a journey of nearly seven years, the Cassini spacecraft is running rings around Saturn.

Also, tell it to the judge. In handcuffs and heavily guarded, an ousted dictator is in the dock in Iraq. We'll hear some of the charges against him in a live report.

This is DAYBREAK for Thursday.

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