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CNN Live At Daybreak

New Iraqi Government Working on Amnesty Deal for Low-Level Insurgents; Come September a Memorable Wedding Date

Aired July 05, 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: 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.
Insurgents are stepping up their attacks on Iraq's oil industry. The oil money is needed to pay for the cost of war reconstruction and recovery efforts.

In the meantime, a deal is in the works for Iraqi insurgents. The new government is working on an amnesty offer for what they call low-level insurgents. We'll have a live report from Baghdad for you in just about a minute and a half.

In money news, a huge international scandal. Russia's biggest oil exporter, Yukos Oil, has been notified of a default on a $1 billion credit. A company spokesman says lenders may seize part of the company's export revenue.

In culture, Afghan leader Hamid Karzai is the newest recipient of the Philadelphia Liberty Medal. The non-political Philadelphia Foundation presents this award each year to recognize leadership in the pursuit of freedom.

In sports, Roger Federer wins his second straight Wimbledon title. The 22-year-old Swiss star beat American Andy Roddick in four sets.

(WEATHER BREAK)

COSTELLO: Do Iraqi insurgents deserve amnesty? It seems the new government thinks some of them should be pardoned. Yes, a deal is now in the works. We're going to take you live to Baghdad for more on this and Brent Sadler.

Hello -- Brent. Tell us about this deal.

BRENT SADLER, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hello. Good morning, Carol.

Yes, we were expecting an announcement a couple of hours ago from the government, from the interim prime minister, Ayad Allawi, outlining what's expected to be some new deal, allowing amnesty for low-level insurgents. That announcement has been put off, surprisingly indefinitely, which really suggests that the nuts and bolts of this plan could well be very controversial, because it touches on some of the most difficult issues involving such a deal. Who should be offered this insurgency? What level? Whether or not those of the very hardcore of the uprising of the rebellion against the interim government and the U.S. forces here in Iraq, who should be offered this amnesty? How strict should it be? How lenient should it be? And these are some of the problems that are thought to be causing the delay in this deal.

What we understand from reports from Iraqi official sources is that we're talking about 5,000 former regime supporters involved in the insurgency being offered some sort of deal if they're prepared to support the government and break away from the insurgency or give information that could lead to the capture or killing of tough insurgent leaders.

But those who are at the top end, the extremist end would not be involved in this amnesty deal, but it is very controversial.

Back to you -- Carol.

COSTELLO: So, people like Muqtada al-Sadr would not be eligible for this amnesty deal, is that right?

SADLER: Well, this is one of the issues that's being talked about right now. Muqtada al-Sadr has, again, thrown a lot of scorn, anti-American, anti-interim government statements out today. It's understood he sent a delegation to the interim prime minister, Allawi, trying to work out a deal. And that's one of the big problems, because Muqtada al-Sadr's Mehdi Army clashed with U.S. forces in heavy bloodshed last April, and he's one of the most sensitive figures that might or might not be involved this deal.

So, you can see the kind of sensitivities involved in all of this, but the essential motive for strategy of this is to break down the cohesion within the insurgency, to break down an emerging alliance between the old Baathist regime supporters and these Islamic militants, to break down what appears to be a growing alliance between those two groups and to break it quickly before it gets any stronger by offering an amnesty that could force people to be co-opted behind the government.

COSTELLO: Brent Sadler live from Baghdad, thank you.

A Utah family must be going through absolute turmoil, waiting to find out if their missing Marine son is dead or alive in Iraq. Over the weekend, there were conflicting reports on Corporal Wassef Hassoun's fate.

CNN's Rusty Dornin has more for you from Salt Lake City.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Shadows, cast by Old Glory at Corporal Wassef Ali Hassoun's home in West Jordan, Utah, a reminder that while it may be the holidays celebrating independence, there is little freedom from fear for this family right now. Conflicting reports of Hassoun's fate brought neighbors and friends to their home this weekend. Kathleen Samuel (ph) doesn't know the family, but brought her own message of support.

UNIDENTIFIED FEMALE: Agony, anguish, sadness, a deep loss.

DORNIN: The headlines here describe not only the emotions of a family that remains in seclusion, but of the community as well. The Imam at the Hassoun family's mosque visits the family daily.

SHUAIB-UD DIN, ISLAMIC SOCIETY OF SALT LAKE CITY: At the moment, we're just, as you would say, keeping our fingers crossed and hoping for the best.

DORNIN: Claims Saturday on two different Web sites that Hassoun was beheaded are being denied by the group claiming to hold him. No one here seems to know what to believe. The conflicting and unconfirmed reports only heighten the anxiety for some, like neighbor, Melissa Funk (ph).

UNIDENTIFIED FEMALE: People are actually realizing, you know, how sad it is, you know? It's not -- it's your neighbor.

DORNIN (on camera): There are people of different faiths here in Salt Lake City. Many stress, when it comes to the fate of this young man, they are united with one prayer in mind: bring Corporal Wassef Ali Hassoun back safely.

Rusty Dornin, CNN, Salt Lake City.

(END VIDEOTAPE)

COSTELLO: On the subject of American politics on the campaign trial, President Bush takes his message of support for the troops to a key battleground state. The president worked a crowd in Charleston, West Virginia, on Sunday, praising those he says are sacrificing to keep this country safe.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Because we acted, the dictator, the brutal tyrant is sitting in a prison cell, and he will receive the justice he denied so many for so long.

(END VIDEO CLIP)

COSTELLO: This was President Bush's ninth visit to West Virginia. Polls show Bush and Democratic challenger John Kerry running a close race for the state's five electoral votes.

Speaking of Kerry, Senator John Kerry tells supporters he is running for president to restore trust and credibility to the White House. Kerry made a holiday weekend campaign swing through three battleground states: Wisconsin, Iowa and Minnesota.

(BEGIN VIDEO CLIP) SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: I think we need a president who understands how to build respect and influence in the world, and who understands that working with other countries is not a sign of weakness, it is a sign of strength. And we need a president who makes America stronger.

(END VIDEO CLIP)

COSTELLO: So, Senator Kerry, who are you going to pick? There has been a lot of talk about when exactly he'll reveal his running mate. The speculation is he could announce as early as this week, so stay tuned.

Vice President Dick Cheney has fired one of his physicians after stories of prescription drug abuse surfaced. The vice president's office says Dr. Gary Malakoff was just one of many doctors on Cheney's medical team. "The New Yorker" magazine published an article about numerous drug purchases made by Malakoff.

Former Enron chairman, Ken Lay, could be indicted as early as this week. But Lay's attorney contends that rumors of his imminent indictment are just a ploy to try and force prosecutors to act. The Associated Press reports that federal prosecutors may ask a Houston grand jury hearing Enron testimony to hand up the indictment. The charges against Lay are expected to include an attempt to hide Enron's financial situation from investors.

(BEGIN VIDEO CLIP)

KEN LAY, FORMER ENRON CHAIRMAN: Obviously, I wish what happened hadn't happened. But we can't redo history now, and the main thing that I've always prayed for from day one is that all of the truth come out, and then let's get on with the future.

(END VIDEO CLIP)

COSTELLO: Lay says he is innocent, and his attorney says the Enron task force is determined to indict Lay, whether he's guilty or not.

You know, sometimes you just need to get away from it all. But in this age of cell phones and beepers and wireless computers, is it even possible to be out of touch?

CNN's Maggie Lake looks at the need for a technology-free vacation.

(BEGIN VIDEOTAPE)

MAGGIE LAKE, CNN CORRESPONDENT (voice over): Feel the need to escape the daily grind? You're not alone. Travel bookings across the United States are on the rise.

The Travel Industry Association of America said this summer will be the biggest one-year jump in leisure travel in the last four years. (on camera): But getting away isn't easy. Whether you're in a coffee shop, at the airport or at the beach, wireless technology has made it possible to log on and call in from almost anywhere.

(voice over): And employers know that. Managers have come to rely on instant access as a way of squeezing more work out of a tight labor pool.

GIL GORDON, AUTHOR, "TURN IT OFF": I think the employers are demanding it, in many cases, as an after-effect of all of the downsizing. You know, there's less bench strength. There are fewer people to cover for those who are on vacation. So, in some cases, it's perceived by the employer as a business necessity.

LAKE: A business tool for some; for others, being wired has turned into an addiction.

UNIDENTIFIED FEMALE: My cell phone I use the second I leave the office until the time I go to bed, probably.

LAKE: Psychologists warn that tech overload can make workers burned out and less productive. Therapists, like Susan Battley, say it's important to unplug when you go on vacation. If you do have to take your laptop or cell phone, set ground rules.

DR. SUSAN BATTLEY, INDUSTRIAL PSYCHOLOGIST: If you do need to leave your contact information, then leave it with a reliable person, someone who will be a gatekeeper and only contact you if the situation is urgent. If you do need to touch base with the office, try to arrange a fixed time so that it is convenient for you.

LAKE: Allowing time to decompress, whether it be a nap on the beach, a European vacation or a picnic in the park, will revitalize you and help you cope with life's hectic pace.

Maggie Lake, CNN, New York.

(END VIDEOTAPE)

COSTELLO: Still to come on DAYBREAK, airline concerns. What's ahead for one of the nation's largest carriers? And what does it mean for you?

Plus, tourists mark the end of mourning, but wait until you hear what else many are doing to keep Ronald Reagan's memory alive.

And proud to be an American? We'll find out how you feel about the nation's patriotism this holiday weekend. Of course, the holiday weekend is almost up, isn't it?

This is DAYBREAK for Monday, July 5.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:14 Eastern. Here's what's all new this morning. Indonesians are voting today in their first-ever direct presidential election. None of the three candidates at the top of the polls is expected to carry a majority. And if that's the case, the two top vote getters will square off in a runoff election in September.

Israel has fired rockets at suspected weapons factories in Gaza. Five Palestinians were slightly wounded in those attacks. Palestinian sources say the targets were metal workshops.

In money news, Wal-Mart is planning to revamp one of its women's clothing lines. It's an effort to boost sagging sales. The George line is now going to be redone to target younger shoppers.

In culture, Disney is being sued over the song, "The Lion Sleeps Tonight." It was featured in "The Lion King." The South African family of the song's composer is now seeking royalties of at least $1.6 million.

And in sports, Barry Bonds has set a record for not hitting homeruns. Actually, he set the record for the most walks in a career with 2,191. The old record was held by Ricky Henderson.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Many of you may be heading to the airport right now, so we thought we'd talk about the future of the airlines. More than a few are in deep financial trouble: Delta, but especially United. The airline has asked for more federal help, but the government said no.

So, what happens now?

Live from New York, Donna Rosato from "Money" magazine.

Good morning.

DONNA ROSATO, "MONEY" MAGAZINE: Good morning.

COSTELLO: Is it possible that United will fold?

ROSATO: It's always a possibility. In the short term that is not likely to happen. What United is going to do right now, and it already is doing, is talking to private lenders and possibly equity investors to get the financing it will need to continue to operate, even though it will not get federal...

COSTELLO: Well, I can hear -- I can hear many Americans out there saying it's about time they're going to private sources to find more money instead of always going to the taxpayers.

ROSATO: That is -- probably a lot of consumers and a lot of competitors of United feel the same way.

COSTELLO: So, why haven't they done this before? ROSATO: United has been operating in chapter 11 bankruptcy protection. And after 9/11, the Air Transportation Stabilization Board was created to help airlines who were affected by 9/11. And other airlines, including America West, did receive loan guarantees, and United was trying to get loan guarantees like other airlines as well.

COSTELLO: You know, it seems like so many of these smaller airlines are taking so many of the passengers. I mean, are there too many huge airlines out there to support business?

ROSATO: Well, there are certainly some people who believe that there are too many airlines that exist today, and certainly competition from low-cost airlines is stiff. There are six major airlines in operation today, and I think if you look down the road you'll probably see three or four in the future.

COSTELLO: Well, and for good reason, because those smaller airlines you get such cheap tickets, and then the larger airlines keep charging more and more, it seems. It doesn't seem like a good business model anymore.

ROSATO: What it comes down to is cost, and that's the big difference between airlines -- the major airlines that exist today that have been around for many years, they have higher costs. And an airline like United Airlines is going to have to reduce its costs and become more efficient if it's going to stay in business.

COSTELLO: So, what will that mean for airline passengers in the near future?

ROSATO: For passengers in the near future, you probably will not see any of it, and your frequent flier miles will be safe. You won't see a lot of changes. Down the road, though, you probably will see an airline like United cut back the number of flights it has. It may reduce some of its hubs it has major operations in places like San Francisco and Washington, D.C. Dulles Airport, where there are a lot of low-cost carriers.

So, you may see it pull back from some of its hubs, but you won't see -- it will continue to operate, just possibly fewer flights.

COSTELLO: Donna Rosato from "Money" magazine, live from New York. Thank you for joining DAYBREAK this morning.

ROSATO: Thank you.

COSTELLO: An American icon snubbed. We'll tell you what G.I. Joe fans are so upset about.

And a survivor's story that will make you grateful for the way you spent your weekend.

And our DAYBREAK "Photo of the Day." What is it? We'll share the answer after the break.

(COMMERCIAL BREAK)

COSTELLO: Oh, those were some beautiful pictures. I like the dog with the hat. That's really cute.

Let's talk about G.I. Joe. Did you have a G.I. Joe doll?

CHAD MYERS, CNN METEOROLOGIST: Of course, I did.

COSTELLO: I did, too. I had two of them. Actually, they were my brother's, but I stole them.

MYERS: I had the six-wheel vehicle, too, that would take him through anything. He could go over mud and gravel and stuff. I love the little quote here of the G.I. Joe, we liked G.I. Joe; he saved the world millions of times over one back yard at a time.

COSTELLO: OK. The reason we're talking -- that's the original G.I. Joe. I can't believe he ever looked like that.

MYERS: Yes...

COSTELLO: Anyway, the reason we're talking is G.I. Joe fans think it's unfair that he hasn't been inducted into his rightful place at the National Toy Hall of Fame. It's actually G.I. Joe's 40th birthday today.

MYERS: Right. And Silly Putty is in there.

COSTELLO: Mr. Potatohead is in there.

MYERS: And Mr. Potatohead never saved the world.

COSTELLO: You're right.

MYERS: I guarantee you, but G.I. Joe did over and over and over.

COSTELLO: So, we're going to start a campaign. They're going to nominate toys in November, so be ready for the letter-writing campaign that we begin soon.

MYERS: Four hundred million G.I. Joes are out there somewhere.

COSTELLO: Oh, that's awesome. He made a great boyfriend for Barbie, much better than Ken.

MYERS: Oh, yes, yes. He was a macho guy.

COSTELLO: Definitely.

It's time for our DAYBREAK "Eye-Opener" right now.

An Alabama woman is in good condition in a hospital after one lucky rescue. Myra Higginthong (ph) -- Higginbotham (ph), I should say, drove her car into a ravine on Friday, but it wasn't until Sunday when someone heard her calls for help. Alabama state troopers are still investigating the crash. She is fine this morning. Trouble for Bangkok's brand new subway system. Overcrowding and confusion marked the first full day of public service. Some had to wait for two or three trains before they could get aboard, and others had trouble figuring out the subway's fast-paced smart card system, which wasn't so smart after all.

MYERS: No.

COSTELLO: Officials say part of the problem was with the riders, who just stayed on the trains for several trips back and forth, because they thought it was fun.

MYERS: Oh.

COSTELLO: A Seattle couple tried something different in an effort to hold -- in an effort held to help pay for their upcoming wedding. They held a car wash. In fact, the entire wedding party grabbed sponges and buckets to help raise money for their big wedding. But I hope it's going to be a small affair since they only raised $400.

MYERS: That won't even buy the cake.

COSTELLO: No.

You know, it is so expensive.

MYERS: Speaking of weddings, Carol will not be here next week or the week after, because she'll be on her honeymoon.

COSTELLO: That's right. Only, what, six more days until I'm a free, single, swinging woman? I can't believe it.

MYERS: Until the end of your free, single, swinging woman.

COSTELLO: Yes. See, I'm so nervous I can't even speak right. They overcharge you for wedding things. I mean, it's a rip-off out there. A cake, a little cake, I could bake a Betty Crocker cake for, what, 2.99?

MYERS: Right.

COSTELLO: But they bake it in a bakery, and it's like $90 for a little two-layer deal.

MYERS: You know, I still have an Easy Bake Oven in the attic if you want me to start doing one.

COSTELLO: Why don't you check that out?

MYERS: Did you see this, the picture?

COSTELLO: Oh, the DAYBREAK "Photo of the Day."

MYERS: Did you pick flowers?

COSTELLO: I just told them to pick whatever.

MYERS: Oh. What?

COSTELLO: No, I'm just -- I'm so not a traditional bride.

What is this picture? This is our DAYBREAK "Photo of the Day." What is it?

MYERS: It is a water lotus.

COSTELLO: Oh.

MYERS: From Echo Park Lake in L.A. They bloom every year, boom! And they just kind of pop up. They do that same thing in Lake Erie, too. There are lotuses in Lake Erie. People actually take them in balls. You take the seeds, you put them in a big ball of mud, and you throw it in the lake. And eventually if it sinks down and it grows, it actually makes big lotuses.

COSTELLO: Really?

MYERS: Yes.

COSTELLO: You know everything, don't you?

MYERS: I don't really. But that's where you're getting married, so that's why I know.

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

The world's finest, but the newly-crowned tennis champ says there is still room for improvement. We're talking Wimbledon later in the hour.

Plus, why is a newspaper apologizing for something that happened more than 40 years ago?

And, we'll take a look at some couples avoiding or accepting an especially memorable date on that calendar for their wedding.

We'll be back.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here are the latest headlines for you now.

A roadside bomb targeting an Iraqi army convoy missed it and killed eight Iraqi civilians instead. Seven others were wounded. That report comes from Iraqi government officials this morning.

And there is late word that former Yugoslav President Slobodan Milosevic is too sick to begin his defense at his war crimes trial. Doctors who checked him out say Milosevic urgently needs rest due to problems caused by high blood pressure.

In money news, it will be a quiet day on Wall Street. Markets are closed in honor of Independence Day. Stocks are expected to stay flat this week as investors react to mixed economic news, including higher consumer confidence by the creation of fewer jobs figures.

In culture, a tribute to Pat Tillman. His parents look on as the former soldier and NFL player is honored with the Audie Murphy Patriotism Award in Tennessee. Tillman gave up a lucrative pro football career and sacrificed his life on the battlefield in Afghanistan.

In sports, Lance Armstrong is playing it safe so far in the Tour de France. The five-time winner finished 48th in the latest leg, but is third overall. He is pacing himself for the grueling three-week race.

(WEATHER REPORT)

COSTELLO: One of the first things Iraq's new government is working on is an offer of amnesty to some insurgents.

Skip Loescher joins us live from Washington with more on this kind of strategy.

Does Washington approve?

SKIP LOESCHER, CNN CORRESPONDENT: Yes, Washington appears to approve at this point. We don't have anything official from the White House yet, but then no one is saying anything bad about it either, Carol.

There was more violence over there today again. A mortar attack in Basra, killing one Iraqi civilian. There were car bombs -- actually, roadside bomb attacks in both Mosul and in Baghdad. A grand total of 13 Iraqi civilians hurt there.

(BEGIN VIDEOTAPE)

LOESCHER (voice over): In an attempt to neutralize at least some of the insurgency, Iraq's interim prime minister is offering low-level members partial amnesty. They'll qualify by giving up their guns and giving the government information about the more violent insurgents.

AYAD ALLAWI, INTERIM IRAQI PRIME MINISTER: Anybody who respects the rule of law and human rights is welcome to be part of Iraq. Anybody who does not is not really welcome. So, it's up to him.

LOESCHER: Prime Minister Allawi says attacks on Iraqi oil pipelines have already resulted in $1 billion in lost revenues. There was another attack over the weekend on a pipeline linking Iraq's northern oil fields to those in the south. The pipeline has been temporarily shut down.

LT. GEN. THOMAS METZ, U.S. ARMY: Our aggressive actions have put the enemy off a little bit, but he's still lethal. He's still out there. And we've still got some tough days ahead of us.

LOESCHER: In central Baghdad Sunday, five Iraqis were wounded when a man threw a hand grenade at them from a passing car. Here at home, the family of Wassef Hassoun, a Marine corporal, continues to pray for his safe return. The group holding him has now denied reports that Hassoun has been killed.

UNIDENTIFIED MALE: At the moment, we're just, as you would say, keeping our fingers crossed and hoping for the best.

(END VIDEOTAPE)

LOESCHER: Still no concrete word on the fate of Hassoun.

We're live in Washington. I'm Skip Loescher.

Carol -- back to you.

COSTELLO: Thank you, Skip.

Published reports of a prisoner swap are labeled pure fantasy. "The New York Times" reports that after months of negotiations last year, there was a secret prisoner swap that involved the U.S., Saudi Arabia and Britain. According to the report, U.S. officials returned five terrorist suspects to Saudi Arabia from Guantanamo Bay. In exchange, the Saudis later released five Britons and two other Westerners held in Saudi Arabia. U.S. and Saudi officials deny the swap ever occurred.

Here are some stories making news across the America this Monday.

A newspaper in Lexington, Kentucky, has published this clarification. Listen to this. "It has come to the editor's attention that 'The Herald Leader' neglected to cover the civil rights movement. We regret the omission." The apology is part of a series of articles entitled, "Front Page News, Back Page Coverage." The paper now admits it intentionally did not print stories on civil rights actions such as sit-ins or marches back in the 1960s.

A growing wildfire in Arizona is threatening one of the world's most powerful telescopes. People were evacuated from the Mount Graham Observatory, as well as from 85 cabins in the area. Firefighters are hoping to keep the 6,000-acre wildfire from jumping a 200-foot empty space designed to protect the observatory from such fires.

Around 6,000 people visited the Ronald Reagan Presidential Library to see a new exhibit on the former president's funeral last month. "Mourning in America" looks at the funeral, burial and the public viewings following Ronald Reagan's death on June 5.

And items from the week of funeral services have become the hot ticket on eBay. In fact, a program from the ceremony at the National Cathedral fetched $1,500. The head of the Reagan Library says she wishes people would hold on to their mementos, but adds that the Gipper did believe in economic opportunity. In New York, relatives of some of the victims of the September 11 attacks watch as a 20-ton block of granite is laid at Ground Zero. It is the cornerstone of the skyscraper that will replace the destroyed World Trade Center towers. The ceremony in lower Manhattan Sunday marked the start of construction on the Freedom Tower.

Also in New York, a tale of two brides and a decision they both must make. It has to do with September 11, which this year falls on a Saturday, one of the prime wedding days.

CNN's Alina Cho has more for you.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT (voice-over): Jennifer Luongo (ph) and Joseph Russo have spent months planning their perfect wedding.

JOSEPH RUSSO, GROOM-TO-BE: We both wanted to be outside. We both like the fall, it's our favorite season. And it was a Saturday.

CHO: Saturday, September 11, the day they will say their vows.

(on camera): Tell me why it is you chose the 11th?

UNIDENTIFIED FEMALE: We thought about it, and September 11 is really big for us. Over the last few years, it's really been a time for us to be with family, and we couldn't think of a better way to be with all of our family at once to celebrate our wedding.

CHO: Luongo (ph) and Russo grew up in New York, moved back just a few months before 9/11.

RUSSO: Obviously, it's probably going to be a big part of the day, you know, remembering what happened. But also, you know, we want to make something good of it.

CHO (on camera): You're trying to reclaim it?

RUSSO: Right.

UNIDENTIFIED FEMALE: The day is so traumatic, and it still is so traumatic in the city, and still is such a day of memorial in the city that I really didn't want to have that as my wedding day.

CHO (voice-over): Bride-to-be Lisa Camm (ph) lives within sight of Lower Manhattan and on 9/11 watched it all.

UNIDENTIFIED FEMALE: It was an awful day. And while I have, to some extent, readjusted to this as my new view, my guests from out of town won't have.

CHO: That's especially important, because Camm (ph) is getting married at a place that once had spectacular views of the Twin Towers. Most of the city's wedding halls will be dark this September 11, the first time since the terrorist attacks the anniversary has fallen on a Saturday. (on camera): You can understand that people might not want...

AMY GRUBER, TWENTY-FOUR FIFTH: A hundred percent. Absolutely. And it's even sometimes uncomfortable for me to address and say that I even have the date available.

CHO (voice over): September is traditionally one of the most popular months for a weddings. Saturday is the most popular day. No weddings on this Saturday means no cakes...

ELLEN BALMORE, WEDDING CAKE DESIGNER: This year so far we have one cake booked and one maybe.

CHO: ... and no flowers.

UNIDENTIFIED FEMALE: It's emotional more than anything. It's not about the money.

CHO: September 11 is not a day for business as usual.

UNIDENTIFIED FEMALE: There are certain times when there's other things that are more important than making money, and I think that's one of those days.

CHO: A day seared in the nation's memory on which most will be thinking about the past...

UNIDENTIFIED FEMALE: Maybe if it were five years out I could even see doing it. It's still too close and too raw, and it's still here in New York.

CHO: ... while a few...

UNIDENTIFIED FEMALE: Celebrating on that day kind of commemorates the love that a lot of people lost that day.

CHO: ... will be toasting the future.

Alina Cho, CNN, New York.

(END VIDEOTAPE)

COSTELLO: So, what does patriotism mean to you? Americans' answers to that question are as varied as we are. Coming up, a look at how patriotic we are as a nation.

Plus, the pride of another nation. A game that's giving much needed international recognition to an entire country. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: And on that note, we must continue the Fourth of July holiday. It is the time we celebrate our country's birth and show a lot of patriotism. On that note, we have some interesting numbers for you this morning. In a Harwood/Gallup Poll, 97 percent say voting is an important part of patriotism, 89 percent say volunteering is another way to show love of county, and 86 percent say you've got to fly the flag.

So, just how patriotic are we? And how do we show it?

Live from D.C., Karolyn Bowman from The American Enterprise Institute.

Good morning.

KAROLYN BOWMAN, THE AMERICAN ENTERPRISE INSTITUTE: Good morning.

COSTELLO: So, how do Americans define patriotism?

BOWMAN: They define it, as you just suggested, as love of country, and we are very deeply patriotic.

COSTELLO: But, you know, you talk -- they talk about volunteering and voting, but 89 percent of Americans do not vote, and I bet 89 percent of Americans don't even fly their flag.

BOWMAN: Well, I think we know the right answer, and I think that tells us something about what patriotism means. That's the answer that we give the pollsters, and I think that that shows that we really do believe that those are things we should do, even if we fall short.

COSTELLO: So, why don't we?

BOWMAN: I don't know the answer to that question.

COSTELLO: What else did the poll show you? Did the poll show you that we're more patriotic now in light of September 11 than we were before September 11?

BOWMAN: Well, certainly immediately after September 11 there were a number of overt displays of patriotism. People flew the flag more. They called relatives and friends. They did all sorts of things that were more overt demonstrations of patriotism. That, of course, has receded somewhat, but we're still deeply patriotic.

COSTELLO: Why do you think so? Why are we deeply patriotic in America?

BOWMAN: I think we have so much to be grateful for even though we find a lot to fault with the way our central institutions work. Yet, one and the same time we know that we have many blessings and live in a free country, and that in itself, I think, is a reason for the deep patriotism that we have.

COSTELLO: Was it something about the way this country was formed?

BOWMAN: Oh, certainly. I think the revolutionary struggle is something that all of us think about in terms of our history. And I think that gives us the kinds of foundations and makes us very deeply patriotic.

COSTELLO: And talking about the Revolution, and, of course, many young men and women are being called into service today, what kind of numbers did you find on those willing to die for their country?

BOWMAN: Well, again, a lot of people are very willing to serve, as we know from all of the men and women who are serving the country today. The military is the most highly-respected institution in American life. It's what we call consensual, rich, poor, young, old, black, white. All regard the military very highly.

And our patriotism isn't a blind patriotism. We certainly accept dissent, and I think that's what is reflected in the question that you just had on the screen.

COSTELLO: Definitely so. And we do have freedom of choice in this country on many things, and we're grateful for that. You asked people how patriotic they were. And what did you find from that question?

BOWMAN: Well, you find that a solid majority say that they completely agree that they are very, very patriotic. And about 35 to 38 percent, depending on the poll, say that they're somewhat patriotic. And those are pretty impressive numbers overall. We hear so much about the divisions in this country, but on the core values, and I think patriotism is a core value, I think we're pretty much united.

COSTELLO: Karolyn Bowman live from Washington, D.C., thank you for joining DAYBREAK this morning.

BOWMAN: Thank you.

COSTELLO: Your news, money, weather and sports. It is 6:43 Eastern. Here's what's all new this morning.

Insurgents are stepping up their attacks on Iraq's oil industry. The oil money is needed to pay for the cost of war reconstruction and recovery efforts.

Israel has fired rockets at suspected weapons factories in Gaza. Five Palestinians were slightly wounded in those attacks. Palestinian sources say the targets were metal workshops.

In money news, have you noticed that you're paying less for CDs? Sales and marketing analysts say music downloading and competition with other forms of entertainment are driving down the prices of compact disks.

In culture, thousands of people will converge on Memphis, Tennessee, today. It's the 50th anniversary of the day Elvis Presley recorded his first single, "That's All Right." Elvis fans claims it's the record that launched rock 'n roll. In sports, Alfonso Soriano will represent the Texas Rangers at this year's All-Star Game a week from tomorrow. Soriano -- I think we said that at the same time. Soriano got the most votes among American League players. He will start at second base.

(WEATHER BREAK)

COSTELLO: I'm just laughing, Chad. You know, I so enjoy our viewer e-mails. A woman just wrote in, Iris. She says my hair makes me look like a Afghan wolf today.

MYERS: I'm sorry.

COSTELLO: Oh, thank you, Iris. I needed that laugh.

Anyway...

MYERS: Yes, sure you did.

COSTELLO: Let's head live to New York now to check in with Bill and Heidi Collins, who is in for Soledad today.

You're going to talk about John Kerry. And who will it be? Who will his running mate be? It just keeps on keeps us guessing.

BILL HEMMER, CNN ANCHOR: An Afghan...

HEIDI COLLINS, CNN ANCHOR: Maybe it's the Afghan wolf.

HEMMER: Yes. What is an Afghan wolf, Carol?

COSTELLO: I don't know, but it just struck me as so funny.

HEMMER: Happy July 5th, by the way.

COSTELLO: Oh, thank you.

HEMMER: I like to see you dressed in red today. I'm wearing the colors as well: red, white and blue.

COSTELLO: Yes, what happened to you, Heidi? Oh, her hair is red.

COLLINS: I'm completely out of it.

COSTELLO: Her hair is red.

HEMMER: You mentioned the vice presidential search. We are told it could happen soon, perhaps this week, maybe sometime Tuesday, Wednesday or Thursday. Whatever the case may be, we'll talk to Kelly Wallace. She's on the trail, and Ron Brownstein is with us, too. He'll analyze what this decision may mean for Senator Kerry this morning.

COLLINS: Obviously, a lot of people are waiting for that announcement. Also, a Saturn moon. Cassini makes its very first pass of Titan. Now, scientists are saying it's different from anything we've ever seen before. We are going to talk to an astronomer about that.

HEMMER: Jack Horkheimer.

COLLINS: Yes, you're right.

HEMMER: Keep looking up.

Too much litigation. One state's beaches may now be less safe, and lawmakers are trying to avoid those lawsuits. Jeffrey Toobin on the litigious world that is the United States. And he would know, so we'll have that for you, too.

COLLINS: Yes, we will.

HEMMER: On a Monday.

COLLINS: For now, though, Carol, back to you. We want to hear more about the Afghan wolf.

HEMMER: Please.

COSTELLO: It's so funny. Thank you, Bill and Heidi. We'll see you in about 10 minutes.

HEMMER: Bye.

COSTELLO: Still to come on DAYBREAK, the king and queen of tennis. What's ahead for these winners of Wimbledon?

Then, they may not be athletes, but this is not a competition for the weak. See what it takes to be -- oh, there they are. See what it takes to be birdman?

(COMMERCIAL BREAK)

COSTELLO: It is time for sports now, and what a weekend at Wimbledon.

Joining us to wrap it all up is our CNN sports contributor, Chris Cotter.

The women's tennis matches were so much more exciting than the men's. I'm sorry. They just were.

CHRIS COTTER, CNN SPORTS CONTRIBUTOR: Well, isn't it unbelievable with such a great sports nation that we have here and so many great sporting events that the three biggest events really happened overseas this past weekend? On July 4th weekend with Wimbledon and Euro 2004. The Greeks...

COSTELLO: Whatever that was.

COTTER: ... are still breaking plates. MYERS: Right.

COTTER: And, you know...

COSTELLO: The Tour de France.

COTTER: And then the Tour de France, that's right.

MYERS: And the French Grand Prix.

COSTELLO: Oh, you and your French Grand Prix.

(CROSSTALK)

COTTER: The most exciting sport, even this past weekend.

COSTELLO: Well, let's start with men's tennis, because it was a great match.

COTTER: It was really. And Roddick and Federer are the two best men's tennis players in the world, and they kind of now are both on top of their games. And the hope, I think, is that Roddick can, you know, beat Federer a couple of times, and they can really develop this rivalry. Roddick has the personality. Federer is just the best men's tennis player in the world. They're both young, good looking guys. So, I think the hope is that, boy, these two guys can save men's tennis and put it on par with the women's tennis.

COSTELLO: Yes, but, you know, the problem, though, with men's tennis, I mean, what? Federer can serve a ball 145 miles per hour, which is very difficult to return, so there is never any volley game.

COTTER: Well, that's Wimbledon, too. The grass surface is so fast. It's all about the serve. And, yes, breaking someone's serve is huge on any type of a grass surface. So, it's a little bit different in that.

COSTELLO: Yes, but it's not so interesting to watch when there is no volley.

COTTER: That's what makes the women's game I think more popular right now is the fact that you have not only the personalities in the Williams, and now you have Sharapova, the 17-year-old who gets the win this past weekend, but you have better tennis. And this match, even though it was only a two-set match, was one of the best women's finals of any grand slam and certainly Wimbledon.

COSTELLO: It was absolutely incredible. And she doesn't look very big in comparison to Serena Williams. Serena Williams is so muscular. This girl, Sharapova, she just looks tall and lanky, but she is strong.

COTTER: Very strong, and just 17 years of age, so she's going to be around a while. And I think that's also the hope on the women's side is that, you know, the Williams sisters have been dominant for now four year really, four or five years that you can find somebody else to come up and really challenge them. And Sharapova looks like she could be the one, and she'll also reap, I think, the rewards from, you know, an endorsement point of view, too. She's, you know, very good looking as well and very young, and so that's an added.

COSTELLO: Now, see, whenever you point out good looks that just makes me so upset as far as a woman athlete is concerned, because before she won this big tournament it was all about taking over for Anna Kournikova.

COTTER: Right, right. Well, the difference is Anna Kournikova is much more concerned about her modeling career and about becoming an actress. Maria Sharapova...

MYERS: Right, she can actually play.

COTTER: Yes, and she's interested in tennis.

MYERS: Yes.

COTTER: She wants to be the best, you know.

COSTELLO: She works at it.

COTTER: Kournikova wanted to parlay, you know, acting and modeling from her tennis career, whereas Sharapova, she's really interested in being the best tennis player in the world.

COSTELLO: She's awesome.

Let's talk about the Tour de France, because you are very into Lance Armstrong there.

COTTER: Well, he was wearing the wrong colored jersey.

COSTELLO: That's confusing.

COTTER: He was wearing green, which is really unusual.

MYERS: If he's not wearing yellow, what's he doing?

COTTER: Right. For him...

MYERS: He's not that far behind, though, really.

COTTER: Yes. For him it's just a matter of, hey, he had a really good day on Saturday to start the tour. He took a few seconds from his rivals, and now with the exception of Wednesday of this week, there will be about 10 days before there is some really important stages in the mountains.

So, for now, it's just a matter of Lance staying out of trouble, don't get involved in the accidents, just stay upright, and let everybody do all of the battling before you get to the mountains.

COSTELLO: Let me ask you about the added pressure for him, because there were those allegations of steroid use and the new book that's come out. He's very upset. He's threatening a lawsuit. So, is there more pressure on him to win this particular race, even though he's done it, what, six times?

COTTER: Yes, I don't think so. He's going for six this year, and there have been allegations from day one, since he came back from cancer. The French media, the European media are saying that there is no way anybody could come back from cancer and win our race.

You know, the French haven't had a winner since 1985. So, they're not too happy about an American coming over and winning their race. So, for the last five years they've really been saying, oh, he can't do it cleanly. He's got to be on drugs.

He had a really tough race last year, too. And I think it kind of caught him off guard and a little by surprise. So, this year he learned a lot from his mistakes last year. I think he's in perfect shape, perfect condition. I would be surprised if he didn't win.

COSTELLO: Want to talk soccer?

MYERS: Go ahead.

COSTELLO: Go ahead.

MYERS: I have no idea where you're going to, but that's all right.

COSTELLO: Greece won the big soccer thing.

COTTER: Euro 2004.

MYERS: Really.

COTTER: You know, look at this. I mean, the folks in Greece are going bananas, because this is a huge tournament. Now, a lot of people in this country don't realize how important this is for the European nations. And Greece before this year had never even won a match in the European Cup tournaments. This year they win the whole thing. It's a huge upset. It's one of the biggest upsets in international soccer history, the fact that they could go through and win. And yesterday they won. They only had 2 shots on goal compared to 19 for Portugal.

MYERS: Wow!

COTTER: And Greece was able to make one of those shots go and win, and they get the win and it's...

COTTER: Poor Chris!

MYERS: And do you know what the score was? It was 1-nil.

COSTELLO: One-nothing.

COTTER: One-nil.

MYERS: Nil!

COSTELLO: Oh, sorry. One-nil.

COTTER: And they don't...

MYERS: That's what I do.

COSTELLO: That's why this sport is not catching on in America! They never score.

COTTER: And they play on a pitch, not a field.

COSTELLO: All right!

COTTER: All of this different terminology.

COSTELLO: Pele, that's all I know.

MYERS: All right, I've got to go.

COSTELLO: Mug!

MYERS: I've got to give away a mug.

COSTELLO: Let's give away the mug.

MYERS: We already gave it away, because it's not here, but that's OK.

It's time to reveal the questions and the answers from Friday. What temperatures do sparklers burn? And that's 2,000 degrees Fahrenheit.

COSTELLO: Wow!

MYERS: And Holly Firfer had the story about the holiday deserts. Which one has the most carbs? Three were three: apple pie, strawberry cheesecake, parfait. The one with the most carbs was apple pie.

COSTELLO: Apple pie.

MYERS: John Martin from New Orleans, Louisiana, or N'awlins, if you will.

COSTELLO: Congratulations, John.

MYERS: John, good morning and congratulations.

Now here we go. Here are the questions for today. Winners announced tomorrow -- winner.

And what city just opened its first subway system? It didn't work very well, but they just opened it.

And what is the name of the flower we showcased on our "Photo of the Day?"

COSTELLO: That's why you were talking about that so much. OK. Daybreak@CNN.com. Daybreak@CNN.com.

Chad, and, of course, Chris will join us for "The Lightning Round."

COTTER: When are you getting married, by the way?

MYERS: Saturday.

COSTELLO: We've got to go to a break.

COTTER: Always a day late and a dollar short.

(COMMERCIAL BREAK)

MYERS: Carol, earlier...

COSTELLO: We're supposed to be a three shot.

MYERS: No, we're not. That's OK.

COSTELLO: Yes we are. Chad, it is time for "The Lightning Round." It is...

MYERS: Yes, but no quite.

COSTELLO: What?

MYERS: Because earlier Iris sent a picture -- or sent an e-mail that said you looked like a wolf hound, an Afghan wolf hound.

COSTELLO: Yes, with my hairdo today?

MYERS: Well, yes, but we found a picture of what one looks like for you.

COTTER: Oh, that's wrong.

MYERS: No resemblance whatsoever, by the way, Iris. Sorry.

COSTELLO: I'm telling you, the hair is kind of similar. If mine was a little lighter...

MYERS: No, don't make it any lighter.

COSTELLO: OK, let's talk about the hot dog eating contest.

MYERS: Fifty-three point five hot dogs in 12 minutes.

COSTELLO: We're talking about the hot dog competition. Do you know about this in New York?

COTTER: Yes, Kobayashi, there he is.

COSTELLO: Kobayashi.

COTTER: He's a legend.

COSTELLO: He's a legend.

COTTER: Yes.

MYERS: The Tsunami.

COSTELLO: It's a tsunami.

MYERS: That's what he calls it.

COSTELLO: He ate 53 and a half hot dogs in 12 minutes at the annual Nathan's Famous Fourth of July Hot Dog Eating Contest on Coney Island.

MYERS: I watched it. It was an hour show.

COSTELLO: Come on!

MYERS: It was the most amazing thing of all time. They talked about it like it was the Grand Prix of the U.S. Oh, and in this corner, and blah, blah. And they went to the hometown and they did -- it was...

COSTELLO: You watched a hot dog eating contest?

MYERS: Play by play, color graphics, the entire thing.

COSTELLO: For an hour?

COTTER: Yes, they had it all.

MYERS: One solid hour.

COSTELLO: Sometimes, Chris, I wonder about Chad.

COTTER: This is a professional league. This is a professional eating league.

MYERS: International federation of competitive eating.

COSTELLO: We've got to get to the birdman since we teased this story.

MYERS: OK, OK.

COSTELLO: Yes, it's people jumping off a pier for fun at the annual birdman competition that takes place in England. Pilots build their own flying machines and compete for prizes. No one has ever won.

MYERS: Well, see, that was a cow. They should have made a pig and made one pig fly. COSTELLO: Thank you for joining us for DAYBREAK this morning, even though it was a little crazy. "AMERICAN MORNING" starts right now.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired July 5, 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: 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.
Insurgents are stepping up their attacks on Iraq's oil industry. The oil money is needed to pay for the cost of war reconstruction and recovery efforts.

In the meantime, a deal is in the works for Iraqi insurgents. The new government is working on an amnesty offer for what they call low-level insurgents. We'll have a live report from Baghdad for you in just about a minute and a half.

In money news, a huge international scandal. Russia's biggest oil exporter, Yukos Oil, has been notified of a default on a $1 billion credit. A company spokesman says lenders may seize part of the company's export revenue.

In culture, Afghan leader Hamid Karzai is the newest recipient of the Philadelphia Liberty Medal. The non-political Philadelphia Foundation presents this award each year to recognize leadership in the pursuit of freedom.

In sports, Roger Federer wins his second straight Wimbledon title. The 22-year-old Swiss star beat American Andy Roddick in four sets.

(WEATHER BREAK)

COSTELLO: Do Iraqi insurgents deserve amnesty? It seems the new government thinks some of them should be pardoned. Yes, a deal is now in the works. We're going to take you live to Baghdad for more on this and Brent Sadler.

Hello -- Brent. Tell us about this deal.

BRENT SADLER, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hello. Good morning, Carol.

Yes, we were expecting an announcement a couple of hours ago from the government, from the interim prime minister, Ayad Allawi, outlining what's expected to be some new deal, allowing amnesty for low-level insurgents. That announcement has been put off, surprisingly indefinitely, which really suggests that the nuts and bolts of this plan could well be very controversial, because it touches on some of the most difficult issues involving such a deal. Who should be offered this insurgency? What level? Whether or not those of the very hardcore of the uprising of the rebellion against the interim government and the U.S. forces here in Iraq, who should be offered this amnesty? How strict should it be? How lenient should it be? And these are some of the problems that are thought to be causing the delay in this deal.

What we understand from reports from Iraqi official sources is that we're talking about 5,000 former regime supporters involved in the insurgency being offered some sort of deal if they're prepared to support the government and break away from the insurgency or give information that could lead to the capture or killing of tough insurgent leaders.

But those who are at the top end, the extremist end would not be involved in this amnesty deal, but it is very controversial.

Back to you -- Carol.

COSTELLO: So, people like Muqtada al-Sadr would not be eligible for this amnesty deal, is that right?

SADLER: Well, this is one of the issues that's being talked about right now. Muqtada al-Sadr has, again, thrown a lot of scorn, anti-American, anti-interim government statements out today. It's understood he sent a delegation to the interim prime minister, Allawi, trying to work out a deal. And that's one of the big problems, because Muqtada al-Sadr's Mehdi Army clashed with U.S. forces in heavy bloodshed last April, and he's one of the most sensitive figures that might or might not be involved this deal.

So, you can see the kind of sensitivities involved in all of this, but the essential motive for strategy of this is to break down the cohesion within the insurgency, to break down an emerging alliance between the old Baathist regime supporters and these Islamic militants, to break down what appears to be a growing alliance between those two groups and to break it quickly before it gets any stronger by offering an amnesty that could force people to be co-opted behind the government.

COSTELLO: Brent Sadler live from Baghdad, thank you.

A Utah family must be going through absolute turmoil, waiting to find out if their missing Marine son is dead or alive in Iraq. Over the weekend, there were conflicting reports on Corporal Wassef Hassoun's fate.

CNN's Rusty Dornin has more for you from Salt Lake City.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Shadows, cast by Old Glory at Corporal Wassef Ali Hassoun's home in West Jordan, Utah, a reminder that while it may be the holidays celebrating independence, there is little freedom from fear for this family right now. Conflicting reports of Hassoun's fate brought neighbors and friends to their home this weekend. Kathleen Samuel (ph) doesn't know the family, but brought her own message of support.

UNIDENTIFIED FEMALE: Agony, anguish, sadness, a deep loss.

DORNIN: The headlines here describe not only the emotions of a family that remains in seclusion, but of the community as well. The Imam at the Hassoun family's mosque visits the family daily.

SHUAIB-UD DIN, ISLAMIC SOCIETY OF SALT LAKE CITY: At the moment, we're just, as you would say, keeping our fingers crossed and hoping for the best.

DORNIN: Claims Saturday on two different Web sites that Hassoun was beheaded are being denied by the group claiming to hold him. No one here seems to know what to believe. The conflicting and unconfirmed reports only heighten the anxiety for some, like neighbor, Melissa Funk (ph).

UNIDENTIFIED FEMALE: People are actually realizing, you know, how sad it is, you know? It's not -- it's your neighbor.

DORNIN (on camera): There are people of different faiths here in Salt Lake City. Many stress, when it comes to the fate of this young man, they are united with one prayer in mind: bring Corporal Wassef Ali Hassoun back safely.

Rusty Dornin, CNN, Salt Lake City.

(END VIDEOTAPE)

COSTELLO: On the subject of American politics on the campaign trial, President Bush takes his message of support for the troops to a key battleground state. The president worked a crowd in Charleston, West Virginia, on Sunday, praising those he says are sacrificing to keep this country safe.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Because we acted, the dictator, the brutal tyrant is sitting in a prison cell, and he will receive the justice he denied so many for so long.

(END VIDEO CLIP)

COSTELLO: This was President Bush's ninth visit to West Virginia. Polls show Bush and Democratic challenger John Kerry running a close race for the state's five electoral votes.

Speaking of Kerry, Senator John Kerry tells supporters he is running for president to restore trust and credibility to the White House. Kerry made a holiday weekend campaign swing through three battleground states: Wisconsin, Iowa and Minnesota.

(BEGIN VIDEO CLIP) SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: I think we need a president who understands how to build respect and influence in the world, and who understands that working with other countries is not a sign of weakness, it is a sign of strength. And we need a president who makes America stronger.

(END VIDEO CLIP)

COSTELLO: So, Senator Kerry, who are you going to pick? There has been a lot of talk about when exactly he'll reveal his running mate. The speculation is he could announce as early as this week, so stay tuned.

Vice President Dick Cheney has fired one of his physicians after stories of prescription drug abuse surfaced. The vice president's office says Dr. Gary Malakoff was just one of many doctors on Cheney's medical team. "The New Yorker" magazine published an article about numerous drug purchases made by Malakoff.

Former Enron chairman, Ken Lay, could be indicted as early as this week. But Lay's attorney contends that rumors of his imminent indictment are just a ploy to try and force prosecutors to act. The Associated Press reports that federal prosecutors may ask a Houston grand jury hearing Enron testimony to hand up the indictment. The charges against Lay are expected to include an attempt to hide Enron's financial situation from investors.

(BEGIN VIDEO CLIP)

KEN LAY, FORMER ENRON CHAIRMAN: Obviously, I wish what happened hadn't happened. But we can't redo history now, and the main thing that I've always prayed for from day one is that all of the truth come out, and then let's get on with the future.

(END VIDEO CLIP)

COSTELLO: Lay says he is innocent, and his attorney says the Enron task force is determined to indict Lay, whether he's guilty or not.

You know, sometimes you just need to get away from it all. But in this age of cell phones and beepers and wireless computers, is it even possible to be out of touch?

CNN's Maggie Lake looks at the need for a technology-free vacation.

(BEGIN VIDEOTAPE)

MAGGIE LAKE, CNN CORRESPONDENT (voice over): Feel the need to escape the daily grind? You're not alone. Travel bookings across the United States are on the rise.

The Travel Industry Association of America said this summer will be the biggest one-year jump in leisure travel in the last four years. (on camera): But getting away isn't easy. Whether you're in a coffee shop, at the airport or at the beach, wireless technology has made it possible to log on and call in from almost anywhere.

(voice over): And employers know that. Managers have come to rely on instant access as a way of squeezing more work out of a tight labor pool.

GIL GORDON, AUTHOR, "TURN IT OFF": I think the employers are demanding it, in many cases, as an after-effect of all of the downsizing. You know, there's less bench strength. There are fewer people to cover for those who are on vacation. So, in some cases, it's perceived by the employer as a business necessity.

LAKE: A business tool for some; for others, being wired has turned into an addiction.

UNIDENTIFIED FEMALE: My cell phone I use the second I leave the office until the time I go to bed, probably.

LAKE: Psychologists warn that tech overload can make workers burned out and less productive. Therapists, like Susan Battley, say it's important to unplug when you go on vacation. If you do have to take your laptop or cell phone, set ground rules.

DR. SUSAN BATTLEY, INDUSTRIAL PSYCHOLOGIST: If you do need to leave your contact information, then leave it with a reliable person, someone who will be a gatekeeper and only contact you if the situation is urgent. If you do need to touch base with the office, try to arrange a fixed time so that it is convenient for you.

LAKE: Allowing time to decompress, whether it be a nap on the beach, a European vacation or a picnic in the park, will revitalize you and help you cope with life's hectic pace.

Maggie Lake, CNN, New York.

(END VIDEOTAPE)

COSTELLO: Still to come on DAYBREAK, airline concerns. What's ahead for one of the nation's largest carriers? And what does it mean for you?

Plus, tourists mark the end of mourning, but wait until you hear what else many are doing to keep Ronald Reagan's memory alive.

And proud to be an American? We'll find out how you feel about the nation's patriotism this holiday weekend. Of course, the holiday weekend is almost up, isn't it?

This is DAYBREAK for Monday, July 5.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:14 Eastern. Here's what's all new this morning. Indonesians are voting today in their first-ever direct presidential election. None of the three candidates at the top of the polls is expected to carry a majority. And if that's the case, the two top vote getters will square off in a runoff election in September.

Israel has fired rockets at suspected weapons factories in Gaza. Five Palestinians were slightly wounded in those attacks. Palestinian sources say the targets were metal workshops.

In money news, Wal-Mart is planning to revamp one of its women's clothing lines. It's an effort to boost sagging sales. The George line is now going to be redone to target younger shoppers.

In culture, Disney is being sued over the song, "The Lion Sleeps Tonight." It was featured in "The Lion King." The South African family of the song's composer is now seeking royalties of at least $1.6 million.

And in sports, Barry Bonds has set a record for not hitting homeruns. Actually, he set the record for the most walks in a career with 2,191. The old record was held by Ricky Henderson.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Many of you may be heading to the airport right now, so we thought we'd talk about the future of the airlines. More than a few are in deep financial trouble: Delta, but especially United. The airline has asked for more federal help, but the government said no.

So, what happens now?

Live from New York, Donna Rosato from "Money" magazine.

Good morning.

DONNA ROSATO, "MONEY" MAGAZINE: Good morning.

COSTELLO: Is it possible that United will fold?

ROSATO: It's always a possibility. In the short term that is not likely to happen. What United is going to do right now, and it already is doing, is talking to private lenders and possibly equity investors to get the financing it will need to continue to operate, even though it will not get federal...

COSTELLO: Well, I can hear -- I can hear many Americans out there saying it's about time they're going to private sources to find more money instead of always going to the taxpayers.

ROSATO: That is -- probably a lot of consumers and a lot of competitors of United feel the same way.

COSTELLO: So, why haven't they done this before? ROSATO: United has been operating in chapter 11 bankruptcy protection. And after 9/11, the Air Transportation Stabilization Board was created to help airlines who were affected by 9/11. And other airlines, including America West, did receive loan guarantees, and United was trying to get loan guarantees like other airlines as well.

COSTELLO: You know, it seems like so many of these smaller airlines are taking so many of the passengers. I mean, are there too many huge airlines out there to support business?

ROSATO: Well, there are certainly some people who believe that there are too many airlines that exist today, and certainly competition from low-cost airlines is stiff. There are six major airlines in operation today, and I think if you look down the road you'll probably see three or four in the future.

COSTELLO: Well, and for good reason, because those smaller airlines you get such cheap tickets, and then the larger airlines keep charging more and more, it seems. It doesn't seem like a good business model anymore.

ROSATO: What it comes down to is cost, and that's the big difference between airlines -- the major airlines that exist today that have been around for many years, they have higher costs. And an airline like United Airlines is going to have to reduce its costs and become more efficient if it's going to stay in business.

COSTELLO: So, what will that mean for airline passengers in the near future?

ROSATO: For passengers in the near future, you probably will not see any of it, and your frequent flier miles will be safe. You won't see a lot of changes. Down the road, though, you probably will see an airline like United cut back the number of flights it has. It may reduce some of its hubs it has major operations in places like San Francisco and Washington, D.C. Dulles Airport, where there are a lot of low-cost carriers.

So, you may see it pull back from some of its hubs, but you won't see -- it will continue to operate, just possibly fewer flights.

COSTELLO: Donna Rosato from "Money" magazine, live from New York. Thank you for joining DAYBREAK this morning.

ROSATO: Thank you.

COSTELLO: An American icon snubbed. We'll tell you what G.I. Joe fans are so upset about.

And a survivor's story that will make you grateful for the way you spent your weekend.

And our DAYBREAK "Photo of the Day." What is it? We'll share the answer after the break.

(COMMERCIAL BREAK)

COSTELLO: Oh, those were some beautiful pictures. I like the dog with the hat. That's really cute.

Let's talk about G.I. Joe. Did you have a G.I. Joe doll?

CHAD MYERS, CNN METEOROLOGIST: Of course, I did.

COSTELLO: I did, too. I had two of them. Actually, they were my brother's, but I stole them.

MYERS: I had the six-wheel vehicle, too, that would take him through anything. He could go over mud and gravel and stuff. I love the little quote here of the G.I. Joe, we liked G.I. Joe; he saved the world millions of times over one back yard at a time.

COSTELLO: OK. The reason we're talking -- that's the original G.I. Joe. I can't believe he ever looked like that.

MYERS: Yes...

COSTELLO: Anyway, the reason we're talking is G.I. Joe fans think it's unfair that he hasn't been inducted into his rightful place at the National Toy Hall of Fame. It's actually G.I. Joe's 40th birthday today.

MYERS: Right. And Silly Putty is in there.

COSTELLO: Mr. Potatohead is in there.

MYERS: And Mr. Potatohead never saved the world.

COSTELLO: You're right.

MYERS: I guarantee you, but G.I. Joe did over and over and over.

COSTELLO: So, we're going to start a campaign. They're going to nominate toys in November, so be ready for the letter-writing campaign that we begin soon.

MYERS: Four hundred million G.I. Joes are out there somewhere.

COSTELLO: Oh, that's awesome. He made a great boyfriend for Barbie, much better than Ken.

MYERS: Oh, yes, yes. He was a macho guy.

COSTELLO: Definitely.

It's time for our DAYBREAK "Eye-Opener" right now.

An Alabama woman is in good condition in a hospital after one lucky rescue. Myra Higginthong (ph) -- Higginbotham (ph), I should say, drove her car into a ravine on Friday, but it wasn't until Sunday when someone heard her calls for help. Alabama state troopers are still investigating the crash. She is fine this morning. Trouble for Bangkok's brand new subway system. Overcrowding and confusion marked the first full day of public service. Some had to wait for two or three trains before they could get aboard, and others had trouble figuring out the subway's fast-paced smart card system, which wasn't so smart after all.

MYERS: No.

COSTELLO: Officials say part of the problem was with the riders, who just stayed on the trains for several trips back and forth, because they thought it was fun.

MYERS: Oh.

COSTELLO: A Seattle couple tried something different in an effort to hold -- in an effort held to help pay for their upcoming wedding. They held a car wash. In fact, the entire wedding party grabbed sponges and buckets to help raise money for their big wedding. But I hope it's going to be a small affair since they only raised $400.

MYERS: That won't even buy the cake.

COSTELLO: No.

You know, it is so expensive.

MYERS: Speaking of weddings, Carol will not be here next week or the week after, because she'll be on her honeymoon.

COSTELLO: That's right. Only, what, six more days until I'm a free, single, swinging woman? I can't believe it.

MYERS: Until the end of your free, single, swinging woman.

COSTELLO: Yes. See, I'm so nervous I can't even speak right. They overcharge you for wedding things. I mean, it's a rip-off out there. A cake, a little cake, I could bake a Betty Crocker cake for, what, 2.99?

MYERS: Right.

COSTELLO: But they bake it in a bakery, and it's like $90 for a little two-layer deal.

MYERS: You know, I still have an Easy Bake Oven in the attic if you want me to start doing one.

COSTELLO: Why don't you check that out?

MYERS: Did you see this, the picture?

COSTELLO: Oh, the DAYBREAK "Photo of the Day."

MYERS: Did you pick flowers?

COSTELLO: I just told them to pick whatever.

MYERS: Oh. What?

COSTELLO: No, I'm just -- I'm so not a traditional bride.

What is this picture? This is our DAYBREAK "Photo of the Day." What is it?

MYERS: It is a water lotus.

COSTELLO: Oh.

MYERS: From Echo Park Lake in L.A. They bloom every year, boom! And they just kind of pop up. They do that same thing in Lake Erie, too. There are lotuses in Lake Erie. People actually take them in balls. You take the seeds, you put them in a big ball of mud, and you throw it in the lake. And eventually if it sinks down and it grows, it actually makes big lotuses.

COSTELLO: Really?

MYERS: Yes.

COSTELLO: You know everything, don't you?

MYERS: I don't really. But that's where you're getting married, so that's why I know.

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

The world's finest, but the newly-crowned tennis champ says there is still room for improvement. We're talking Wimbledon later in the hour.

Plus, why is a newspaper apologizing for something that happened more than 40 years ago?

And, we'll take a look at some couples avoiding or accepting an especially memorable date on that calendar for their wedding.

We'll be back.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here are the latest headlines for you now.

A roadside bomb targeting an Iraqi army convoy missed it and killed eight Iraqi civilians instead. Seven others were wounded. That report comes from Iraqi government officials this morning.

And there is late word that former Yugoslav President Slobodan Milosevic is too sick to begin his defense at his war crimes trial. Doctors who checked him out say Milosevic urgently needs rest due to problems caused by high blood pressure.

In money news, it will be a quiet day on Wall Street. Markets are closed in honor of Independence Day. Stocks are expected to stay flat this week as investors react to mixed economic news, including higher consumer confidence by the creation of fewer jobs figures.

In culture, a tribute to Pat Tillman. His parents look on as the former soldier and NFL player is honored with the Audie Murphy Patriotism Award in Tennessee. Tillman gave up a lucrative pro football career and sacrificed his life on the battlefield in Afghanistan.

In sports, Lance Armstrong is playing it safe so far in the Tour de France. The five-time winner finished 48th in the latest leg, but is third overall. He is pacing himself for the grueling three-week race.

(WEATHER REPORT)

COSTELLO: One of the first things Iraq's new government is working on is an offer of amnesty to some insurgents.

Skip Loescher joins us live from Washington with more on this kind of strategy.

Does Washington approve?

SKIP LOESCHER, CNN CORRESPONDENT: Yes, Washington appears to approve at this point. We don't have anything official from the White House yet, but then no one is saying anything bad about it either, Carol.

There was more violence over there today again. A mortar attack in Basra, killing one Iraqi civilian. There were car bombs -- actually, roadside bomb attacks in both Mosul and in Baghdad. A grand total of 13 Iraqi civilians hurt there.

(BEGIN VIDEOTAPE)

LOESCHER (voice over): In an attempt to neutralize at least some of the insurgency, Iraq's interim prime minister is offering low-level members partial amnesty. They'll qualify by giving up their guns and giving the government information about the more violent insurgents.

AYAD ALLAWI, INTERIM IRAQI PRIME MINISTER: Anybody who respects the rule of law and human rights is welcome to be part of Iraq. Anybody who does not is not really welcome. So, it's up to him.

LOESCHER: Prime Minister Allawi says attacks on Iraqi oil pipelines have already resulted in $1 billion in lost revenues. There was another attack over the weekend on a pipeline linking Iraq's northern oil fields to those in the south. The pipeline has been temporarily shut down.

LT. GEN. THOMAS METZ, U.S. ARMY: Our aggressive actions have put the enemy off a little bit, but he's still lethal. He's still out there. And we've still got some tough days ahead of us.

LOESCHER: In central Baghdad Sunday, five Iraqis were wounded when a man threw a hand grenade at them from a passing car. Here at home, the family of Wassef Hassoun, a Marine corporal, continues to pray for his safe return. The group holding him has now denied reports that Hassoun has been killed.

UNIDENTIFIED MALE: At the moment, we're just, as you would say, keeping our fingers crossed and hoping for the best.

(END VIDEOTAPE)

LOESCHER: Still no concrete word on the fate of Hassoun.

We're live in Washington. I'm Skip Loescher.

Carol -- back to you.

COSTELLO: Thank you, Skip.

Published reports of a prisoner swap are labeled pure fantasy. "The New York Times" reports that after months of negotiations last year, there was a secret prisoner swap that involved the U.S., Saudi Arabia and Britain. According to the report, U.S. officials returned five terrorist suspects to Saudi Arabia from Guantanamo Bay. In exchange, the Saudis later released five Britons and two other Westerners held in Saudi Arabia. U.S. and Saudi officials deny the swap ever occurred.

Here are some stories making news across the America this Monday.

A newspaper in Lexington, Kentucky, has published this clarification. Listen to this. "It has come to the editor's attention that 'The Herald Leader' neglected to cover the civil rights movement. We regret the omission." The apology is part of a series of articles entitled, "Front Page News, Back Page Coverage." The paper now admits it intentionally did not print stories on civil rights actions such as sit-ins or marches back in the 1960s.

A growing wildfire in Arizona is threatening one of the world's most powerful telescopes. People were evacuated from the Mount Graham Observatory, as well as from 85 cabins in the area. Firefighters are hoping to keep the 6,000-acre wildfire from jumping a 200-foot empty space designed to protect the observatory from such fires.

Around 6,000 people visited the Ronald Reagan Presidential Library to see a new exhibit on the former president's funeral last month. "Mourning in America" looks at the funeral, burial and the public viewings following Ronald Reagan's death on June 5.

And items from the week of funeral services have become the hot ticket on eBay. In fact, a program from the ceremony at the National Cathedral fetched $1,500. The head of the Reagan Library says she wishes people would hold on to their mementos, but adds that the Gipper did believe in economic opportunity. In New York, relatives of some of the victims of the September 11 attacks watch as a 20-ton block of granite is laid at Ground Zero. It is the cornerstone of the skyscraper that will replace the destroyed World Trade Center towers. The ceremony in lower Manhattan Sunday marked the start of construction on the Freedom Tower.

Also in New York, a tale of two brides and a decision they both must make. It has to do with September 11, which this year falls on a Saturday, one of the prime wedding days.

CNN's Alina Cho has more for you.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT (voice-over): Jennifer Luongo (ph) and Joseph Russo have spent months planning their perfect wedding.

JOSEPH RUSSO, GROOM-TO-BE: We both wanted to be outside. We both like the fall, it's our favorite season. And it was a Saturday.

CHO: Saturday, September 11, the day they will say their vows.

(on camera): Tell me why it is you chose the 11th?

UNIDENTIFIED FEMALE: We thought about it, and September 11 is really big for us. Over the last few years, it's really been a time for us to be with family, and we couldn't think of a better way to be with all of our family at once to celebrate our wedding.

CHO: Luongo (ph) and Russo grew up in New York, moved back just a few months before 9/11.

RUSSO: Obviously, it's probably going to be a big part of the day, you know, remembering what happened. But also, you know, we want to make something good of it.

CHO (on camera): You're trying to reclaim it?

RUSSO: Right.

UNIDENTIFIED FEMALE: The day is so traumatic, and it still is so traumatic in the city, and still is such a day of memorial in the city that I really didn't want to have that as my wedding day.

CHO (voice-over): Bride-to-be Lisa Camm (ph) lives within sight of Lower Manhattan and on 9/11 watched it all.

UNIDENTIFIED FEMALE: It was an awful day. And while I have, to some extent, readjusted to this as my new view, my guests from out of town won't have.

CHO: That's especially important, because Camm (ph) is getting married at a place that once had spectacular views of the Twin Towers. Most of the city's wedding halls will be dark this September 11, the first time since the terrorist attacks the anniversary has fallen on a Saturday. (on camera): You can understand that people might not want...

AMY GRUBER, TWENTY-FOUR FIFTH: A hundred percent. Absolutely. And it's even sometimes uncomfortable for me to address and say that I even have the date available.

CHO (voice over): September is traditionally one of the most popular months for a weddings. Saturday is the most popular day. No weddings on this Saturday means no cakes...

ELLEN BALMORE, WEDDING CAKE DESIGNER: This year so far we have one cake booked and one maybe.

CHO: ... and no flowers.

UNIDENTIFIED FEMALE: It's emotional more than anything. It's not about the money.

CHO: September 11 is not a day for business as usual.

UNIDENTIFIED FEMALE: There are certain times when there's other things that are more important than making money, and I think that's one of those days.

CHO: A day seared in the nation's memory on which most will be thinking about the past...

UNIDENTIFIED FEMALE: Maybe if it were five years out I could even see doing it. It's still too close and too raw, and it's still here in New York.

CHO: ... while a few...

UNIDENTIFIED FEMALE: Celebrating on that day kind of commemorates the love that a lot of people lost that day.

CHO: ... will be toasting the future.

Alina Cho, CNN, New York.

(END VIDEOTAPE)

COSTELLO: So, what does patriotism mean to you? Americans' answers to that question are as varied as we are. Coming up, a look at how patriotic we are as a nation.

Plus, the pride of another nation. A game that's giving much needed international recognition to an entire country. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: And on that note, we must continue the Fourth of July holiday. It is the time we celebrate our country's birth and show a lot of patriotism. On that note, we have some interesting numbers for you this morning. In a Harwood/Gallup Poll, 97 percent say voting is an important part of patriotism, 89 percent say volunteering is another way to show love of county, and 86 percent say you've got to fly the flag.

So, just how patriotic are we? And how do we show it?

Live from D.C., Karolyn Bowman from The American Enterprise Institute.

Good morning.

KAROLYN BOWMAN, THE AMERICAN ENTERPRISE INSTITUTE: Good morning.

COSTELLO: So, how do Americans define patriotism?

BOWMAN: They define it, as you just suggested, as love of country, and we are very deeply patriotic.

COSTELLO: But, you know, you talk -- they talk about volunteering and voting, but 89 percent of Americans do not vote, and I bet 89 percent of Americans don't even fly their flag.

BOWMAN: Well, I think we know the right answer, and I think that tells us something about what patriotism means. That's the answer that we give the pollsters, and I think that that shows that we really do believe that those are things we should do, even if we fall short.

COSTELLO: So, why don't we?

BOWMAN: I don't know the answer to that question.

COSTELLO: What else did the poll show you? Did the poll show you that we're more patriotic now in light of September 11 than we were before September 11?

BOWMAN: Well, certainly immediately after September 11 there were a number of overt displays of patriotism. People flew the flag more. They called relatives and friends. They did all sorts of things that were more overt demonstrations of patriotism. That, of course, has receded somewhat, but we're still deeply patriotic.

COSTELLO: Why do you think so? Why are we deeply patriotic in America?

BOWMAN: I think we have so much to be grateful for even though we find a lot to fault with the way our central institutions work. Yet, one and the same time we know that we have many blessings and live in a free country, and that in itself, I think, is a reason for the deep patriotism that we have.

COSTELLO: Was it something about the way this country was formed?

BOWMAN: Oh, certainly. I think the revolutionary struggle is something that all of us think about in terms of our history. And I think that gives us the kinds of foundations and makes us very deeply patriotic.

COSTELLO: And talking about the Revolution, and, of course, many young men and women are being called into service today, what kind of numbers did you find on those willing to die for their country?

BOWMAN: Well, again, a lot of people are very willing to serve, as we know from all of the men and women who are serving the country today. The military is the most highly-respected institution in American life. It's what we call consensual, rich, poor, young, old, black, white. All regard the military very highly.

And our patriotism isn't a blind patriotism. We certainly accept dissent, and I think that's what is reflected in the question that you just had on the screen.

COSTELLO: Definitely so. And we do have freedom of choice in this country on many things, and we're grateful for that. You asked people how patriotic they were. And what did you find from that question?

BOWMAN: Well, you find that a solid majority say that they completely agree that they are very, very patriotic. And about 35 to 38 percent, depending on the poll, say that they're somewhat patriotic. And those are pretty impressive numbers overall. We hear so much about the divisions in this country, but on the core values, and I think patriotism is a core value, I think we're pretty much united.

COSTELLO: Karolyn Bowman live from Washington, D.C., thank you for joining DAYBREAK this morning.

BOWMAN: Thank you.

COSTELLO: Your news, money, weather and sports. It is 6:43 Eastern. Here's what's all new this morning.

Insurgents are stepping up their attacks on Iraq's oil industry. The oil money is needed to pay for the cost of war reconstruction and recovery efforts.

Israel has fired rockets at suspected weapons factories in Gaza. Five Palestinians were slightly wounded in those attacks. Palestinian sources say the targets were metal workshops.

In money news, have you noticed that you're paying less for CDs? Sales and marketing analysts say music downloading and competition with other forms of entertainment are driving down the prices of compact disks.

In culture, thousands of people will converge on Memphis, Tennessee, today. It's the 50th anniversary of the day Elvis Presley recorded his first single, "That's All Right." Elvis fans claims it's the record that launched rock 'n roll. In sports, Alfonso Soriano will represent the Texas Rangers at this year's All-Star Game a week from tomorrow. Soriano -- I think we said that at the same time. Soriano got the most votes among American League players. He will start at second base.

(WEATHER BREAK)

COSTELLO: I'm just laughing, Chad. You know, I so enjoy our viewer e-mails. A woman just wrote in, Iris. She says my hair makes me look like a Afghan wolf today.

MYERS: I'm sorry.

COSTELLO: Oh, thank you, Iris. I needed that laugh.

Anyway...

MYERS: Yes, sure you did.

COSTELLO: Let's head live to New York now to check in with Bill and Heidi Collins, who is in for Soledad today.

You're going to talk about John Kerry. And who will it be? Who will his running mate be? It just keeps on keeps us guessing.

BILL HEMMER, CNN ANCHOR: An Afghan...

HEIDI COLLINS, CNN ANCHOR: Maybe it's the Afghan wolf.

HEMMER: Yes. What is an Afghan wolf, Carol?

COSTELLO: I don't know, but it just struck me as so funny.

HEMMER: Happy July 5th, by the way.

COSTELLO: Oh, thank you.

HEMMER: I like to see you dressed in red today. I'm wearing the colors as well: red, white and blue.

COSTELLO: Yes, what happened to you, Heidi? Oh, her hair is red.

COLLINS: I'm completely out of it.

COSTELLO: Her hair is red.

HEMMER: You mentioned the vice presidential search. We are told it could happen soon, perhaps this week, maybe sometime Tuesday, Wednesday or Thursday. Whatever the case may be, we'll talk to Kelly Wallace. She's on the trail, and Ron Brownstein is with us, too. He'll analyze what this decision may mean for Senator Kerry this morning.

COLLINS: Obviously, a lot of people are waiting for that announcement. Also, a Saturn moon. Cassini makes its very first pass of Titan. Now, scientists are saying it's different from anything we've ever seen before. We are going to talk to an astronomer about that.

HEMMER: Jack Horkheimer.

COLLINS: Yes, you're right.

HEMMER: Keep looking up.

Too much litigation. One state's beaches may now be less safe, and lawmakers are trying to avoid those lawsuits. Jeffrey Toobin on the litigious world that is the United States. And he would know, so we'll have that for you, too.

COLLINS: Yes, we will.

HEMMER: On a Monday.

COLLINS: For now, though, Carol, back to you. We want to hear more about the Afghan wolf.

HEMMER: Please.

COSTELLO: It's so funny. Thank you, Bill and Heidi. We'll see you in about 10 minutes.

HEMMER: Bye.

COSTELLO: Still to come on DAYBREAK, the king and queen of tennis. What's ahead for these winners of Wimbledon?

Then, they may not be athletes, but this is not a competition for the weak. See what it takes to be -- oh, there they are. See what it takes to be birdman?

(COMMERCIAL BREAK)

COSTELLO: It is time for sports now, and what a weekend at Wimbledon.

Joining us to wrap it all up is our CNN sports contributor, Chris Cotter.

The women's tennis matches were so much more exciting than the men's. I'm sorry. They just were.

CHRIS COTTER, CNN SPORTS CONTRIBUTOR: Well, isn't it unbelievable with such a great sports nation that we have here and so many great sporting events that the three biggest events really happened overseas this past weekend? On July 4th weekend with Wimbledon and Euro 2004. The Greeks...

COSTELLO: Whatever that was.

COTTER: ... are still breaking plates. MYERS: Right.

COTTER: And, you know...

COSTELLO: The Tour de France.

COTTER: And then the Tour de France, that's right.

MYERS: And the French Grand Prix.

COSTELLO: Oh, you and your French Grand Prix.

(CROSSTALK)

COTTER: The most exciting sport, even this past weekend.

COSTELLO: Well, let's start with men's tennis, because it was a great match.

COTTER: It was really. And Roddick and Federer are the two best men's tennis players in the world, and they kind of now are both on top of their games. And the hope, I think, is that Roddick can, you know, beat Federer a couple of times, and they can really develop this rivalry. Roddick has the personality. Federer is just the best men's tennis player in the world. They're both young, good looking guys. So, I think the hope is that, boy, these two guys can save men's tennis and put it on par with the women's tennis.

COSTELLO: Yes, but, you know, the problem, though, with men's tennis, I mean, what? Federer can serve a ball 145 miles per hour, which is very difficult to return, so there is never any volley game.

COTTER: Well, that's Wimbledon, too. The grass surface is so fast. It's all about the serve. And, yes, breaking someone's serve is huge on any type of a grass surface. So, it's a little bit different in that.

COSTELLO: Yes, but it's not so interesting to watch when there is no volley.

COTTER: That's what makes the women's game I think more popular right now is the fact that you have not only the personalities in the Williams, and now you have Sharapova, the 17-year-old who gets the win this past weekend, but you have better tennis. And this match, even though it was only a two-set match, was one of the best women's finals of any grand slam and certainly Wimbledon.

COSTELLO: It was absolutely incredible. And she doesn't look very big in comparison to Serena Williams. Serena Williams is so muscular. This girl, Sharapova, she just looks tall and lanky, but she is strong.

COTTER: Very strong, and just 17 years of age, so she's going to be around a while. And I think that's also the hope on the women's side is that, you know, the Williams sisters have been dominant for now four year really, four or five years that you can find somebody else to come up and really challenge them. And Sharapova looks like she could be the one, and she'll also reap, I think, the rewards from, you know, an endorsement point of view, too. She's, you know, very good looking as well and very young, and so that's an added.

COSTELLO: Now, see, whenever you point out good looks that just makes me so upset as far as a woman athlete is concerned, because before she won this big tournament it was all about taking over for Anna Kournikova.

COTTER: Right, right. Well, the difference is Anna Kournikova is much more concerned about her modeling career and about becoming an actress. Maria Sharapova...

MYERS: Right, she can actually play.

COTTER: Yes, and she's interested in tennis.

MYERS: Yes.

COTTER: She wants to be the best, you know.

COSTELLO: She works at it.

COTTER: Kournikova wanted to parlay, you know, acting and modeling from her tennis career, whereas Sharapova, she's really interested in being the best tennis player in the world.

COSTELLO: She's awesome.

Let's talk about the Tour de France, because you are very into Lance Armstrong there.

COTTER: Well, he was wearing the wrong colored jersey.

COSTELLO: That's confusing.

COTTER: He was wearing green, which is really unusual.

MYERS: If he's not wearing yellow, what's he doing?

COTTER: Right. For him...

MYERS: He's not that far behind, though, really.

COTTER: Yes. For him it's just a matter of, hey, he had a really good day on Saturday to start the tour. He took a few seconds from his rivals, and now with the exception of Wednesday of this week, there will be about 10 days before there is some really important stages in the mountains.

So, for now, it's just a matter of Lance staying out of trouble, don't get involved in the accidents, just stay upright, and let everybody do all of the battling before you get to the mountains.

COSTELLO: Let me ask you about the added pressure for him, because there were those allegations of steroid use and the new book that's come out. He's very upset. He's threatening a lawsuit. So, is there more pressure on him to win this particular race, even though he's done it, what, six times?

COTTER: Yes, I don't think so. He's going for six this year, and there have been allegations from day one, since he came back from cancer. The French media, the European media are saying that there is no way anybody could come back from cancer and win our race.

You know, the French haven't had a winner since 1985. So, they're not too happy about an American coming over and winning their race. So, for the last five years they've really been saying, oh, he can't do it cleanly. He's got to be on drugs.

He had a really tough race last year, too. And I think it kind of caught him off guard and a little by surprise. So, this year he learned a lot from his mistakes last year. I think he's in perfect shape, perfect condition. I would be surprised if he didn't win.

COSTELLO: Want to talk soccer?

MYERS: Go ahead.

COSTELLO: Go ahead.

MYERS: I have no idea where you're going to, but that's all right.

COSTELLO: Greece won the big soccer thing.

COTTER: Euro 2004.

MYERS: Really.

COTTER: You know, look at this. I mean, the folks in Greece are going bananas, because this is a huge tournament. Now, a lot of people in this country don't realize how important this is for the European nations. And Greece before this year had never even won a match in the European Cup tournaments. This year they win the whole thing. It's a huge upset. It's one of the biggest upsets in international soccer history, the fact that they could go through and win. And yesterday they won. They only had 2 shots on goal compared to 19 for Portugal.

MYERS: Wow!

COTTER: And Greece was able to make one of those shots go and win, and they get the win and it's...

COTTER: Poor Chris!

MYERS: And do you know what the score was? It was 1-nil.

COSTELLO: One-nothing.

COTTER: One-nil.

MYERS: Nil!

COSTELLO: Oh, sorry. One-nil.

COTTER: And they don't...

MYERS: That's what I do.

COSTELLO: That's why this sport is not catching on in America! They never score.

COTTER: And they play on a pitch, not a field.

COSTELLO: All right!

COTTER: All of this different terminology.

COSTELLO: Pele, that's all I know.

MYERS: All right, I've got to go.

COSTELLO: Mug!

MYERS: I've got to give away a mug.

COSTELLO: Let's give away the mug.

MYERS: We already gave it away, because it's not here, but that's OK.

It's time to reveal the questions and the answers from Friday. What temperatures do sparklers burn? And that's 2,000 degrees Fahrenheit.

COSTELLO: Wow!

MYERS: And Holly Firfer had the story about the holiday deserts. Which one has the most carbs? Three were three: apple pie, strawberry cheesecake, parfait. The one with the most carbs was apple pie.

COSTELLO: Apple pie.

MYERS: John Martin from New Orleans, Louisiana, or N'awlins, if you will.

COSTELLO: Congratulations, John.

MYERS: John, good morning and congratulations.

Now here we go. Here are the questions for today. Winners announced tomorrow -- winner.

And what city just opened its first subway system? It didn't work very well, but they just opened it.

And what is the name of the flower we showcased on our "Photo of the Day?"

COSTELLO: That's why you were talking about that so much. OK. Daybreak@CNN.com. Daybreak@CNN.com.

Chad, and, of course, Chris will join us for "The Lightning Round."

COTTER: When are you getting married, by the way?

MYERS: Saturday.

COSTELLO: We've got to go to a break.

COTTER: Always a day late and a dollar short.

(COMMERCIAL BREAK)

MYERS: Carol, earlier...

COSTELLO: We're supposed to be a three shot.

MYERS: No, we're not. That's OK.

COSTELLO: Yes we are. Chad, it is time for "The Lightning Round." It is...

MYERS: Yes, but no quite.

COSTELLO: What?

MYERS: Because earlier Iris sent a picture -- or sent an e-mail that said you looked like a wolf hound, an Afghan wolf hound.

COSTELLO: Yes, with my hairdo today?

MYERS: Well, yes, but we found a picture of what one looks like for you.

COTTER: Oh, that's wrong.

MYERS: No resemblance whatsoever, by the way, Iris. Sorry.

COSTELLO: I'm telling you, the hair is kind of similar. If mine was a little lighter...

MYERS: No, don't make it any lighter.

COSTELLO: OK, let's talk about the hot dog eating contest.

MYERS: Fifty-three point five hot dogs in 12 minutes.

COSTELLO: We're talking about the hot dog competition. Do you know about this in New York?

COTTER: Yes, Kobayashi, there he is.

COSTELLO: Kobayashi.

COTTER: He's a legend.

COSTELLO: He's a legend.

COTTER: Yes.

MYERS: The Tsunami.

COSTELLO: It's a tsunami.

MYERS: That's what he calls it.

COSTELLO: He ate 53 and a half hot dogs in 12 minutes at the annual Nathan's Famous Fourth of July Hot Dog Eating Contest on Coney Island.

MYERS: I watched it. It was an hour show.

COSTELLO: Come on!

MYERS: It was the most amazing thing of all time. They talked about it like it was the Grand Prix of the U.S. Oh, and in this corner, and blah, blah. And they went to the hometown and they did -- it was...

COSTELLO: You watched a hot dog eating contest?

MYERS: Play by play, color graphics, the entire thing.

COSTELLO: For an hour?

COTTER: Yes, they had it all.

MYERS: One solid hour.

COSTELLO: Sometimes, Chris, I wonder about Chad.

COTTER: This is a professional league. This is a professional eating league.

MYERS: International federation of competitive eating.

COSTELLO: We've got to get to the birdman since we teased this story.

MYERS: OK, OK.

COSTELLO: Yes, it's people jumping off a pier for fun at the annual birdman competition that takes place in England. Pilots build their own flying machines and compete for prizes. No one has ever won.

MYERS: Well, see, that was a cow. They should have made a pig and made one pig fly. COSTELLO: Thank you for joining us for DAYBREAK this morning, even though it was a little crazy. "AMERICAN MORNING" starts right now.

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