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CNN Live At Daybreak

Fate of Philippine Hostage in Iraq Very Much in Question; Some of Latest Terror Threats Popping Up on Internet

Aired July 13, 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.


BETTY NGUYEN, CNN ANCHOR: Could this hostage be freed today? Conflicting reports about negotiations between his country and the abductors.
It's Tuesday, July 13, and this is DAYBREAK.

Well, good morning.

From the CNN Global Headquarters in Atlanta, I'm Betty Nguyen in for Carol Costello.

Now in the news, Manila says it will withdraw its troops from Iraq. In return, abductors of a Filipino truck driver say they will release him today. The kidnappers had threatened to behead the hostage if the troops were not withdrawn by July 20. We'll get a live report out of Baghdad in just two minutes.

Britain's Lord Butler delivers a report on Iraq today to Prime Minister Tony Blair. That report on the prewar intelligence used to justify the war is expected to criticize both the prime minister and big officials. It'll be made public tomorrow.

In the U.S., debate on banning same-sex marriages resumes in just a few hours. A backer of the proposed constitutional amendment says his side is still well short of the votes needed for approval.

Less than 10 minutes ago, NASA scrubbed the launch of the Aura satellite. The Aura is specially equipped to monitor the Earth's atmosphere and changes to the ozone layer. Technical problems led to today's postponement, but NASA is expected to try again later this week.

Keeping you informed, CNN, the most trusted name in news.

And keeping you informed on the weather is Chad Myers -- good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Betty.

(WEATHER REPORT)

NGUYEN: Well, the fate of a Philippine hostage in Iraq is very much in question this morning. Will he be killed or freed? And will his country give in to the demands of his kidnappers?

We want to go live now to Baghdad. Our Michael Holmes is covering this developing story -- good morning.

MICHAEL HOLMES, CNN CORRESPONDENT: Good morning to you.

A very difficult and delicate situation, it has to be said. But it does appear that the Philippine government, certainly sources here within the Philippine embassy on the ground in Baghdad indicating that there is certainly a taking into account, if you like, of the kidnappers' demands. They say that the Filipino group here, that's about 50 troops, will be withdrawn from Iraq, in their words, "as soon as possible." This following on from the kidnappers' demands.

These troops, some 50 of them, have been here for some months. They we're due to leave or their term here was due to expire August 20. But now we're hearing that they will leave "as soon as possible."

The release of the hostage was meant to occur today here in Baghdad. We have been led to believe that this information has been passed on to negotiators here in Iraq and that he will be released today.

Certainly this is not a development that would please either the White House nor, in fact, the Baghdad administration here.

Here's what the foreign minister had to say in Brussels.

(BEGIN VIDEO CLIP)

HOSHYAR ZEBARI, IRAQI FOREIGN MINISTER: The difficulty is really we don't know who are these people. Are they criminal gangs? They don't have an address. They don't have any negotiating mechanisms. So we do our best to do that through intermediaries and through our local security and police authorities.

(END VIDEO CLIP)

HOLMES: Yes, it's certainly a very delicate situation, as I said, certainly for the Philippine government, a very close ally of the United States. The United States certainly wouldn't want such an ally to be seen to be acceding to the demands of kidnappers.

However, it appears that that may be, indeed, what is happening. The government, as I said, saying that they would withdraw their 50 person group here as soon as possible and the release of the hostage expected some time today, or at least that's the information that's being given to the Philippine negotiators, who are dealing through middlemen who are, in turn, dealing with the kidnappers themselves -- Betty.

NGUYEN: Michael, this "as soon as possible" could just be a play on words, because we really don't know if that's going to happen before August 20, which is the scheduled return for those humanitarian aid workers.

HOLMES: That's true. Indeed, that's true. It's very non- specific, isn't it? August 20 is, in terms of days, not all that far away. In terms of life and times here in Baghdad, it's an eternity away.

But, yes, it does give a little bit of what you might call wiggle room. "As soon as possible," does that mean next week? Does it mean the week after? Does it, indeed, mean August 20, as planned?

Betty.

NGUYEN: But if it works, that's all that matters to the family of that hostage.

Thank you.

Michael Holmes.

Well, the threat of the terror attacks is a major problem for the American economy. That's among the points expected to be made today by Treasury Secretary John Snow. Snow is scheduled to tour a plant in Cleveland and afterward will speak about provisions in the Patriot Act. In prepared remarks, Snow says cutting of their cash flow is the best way to fight terror groups.

Some of the latest terror threats are popping up on the Internet. And security officials say some of the postings may provide invaluable clues to pinpointing potential targets for terror.

CNN's Kelli Arena reports.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): This Web site reads in part: "Oh, Allah, destroy America and shake it." This one says: "The decisive battle is approaching."

Such threats are not new to terror experts who scan hundreds of al Qaeda-related Web sites daily but recently some say there is more reason to worry. Experts say threats are coming with greater frequency and from more reliable sources.

EVAN KOHLMAN, GLOBALTERRORALERT.COM: A lot of the chatter that we're seeing is not coming from unidentified, unspecified sources on Internet chat boards. It's coming from the same sources that have predicted before terrorist acts that have actually occurred.

ARENA: One such source warned of attacks in Spain three months before the bombings there in March and distributed video of the beheading of American Nick Berg. It's called Global Islamic Media.

KOHLMAN: It is now saying that the death blows and the approaching battles are coming that the death blows are upon us and that these death blows will not only be horrible but that they are sure to happen.

ARENA: Some of the potential targets mentioned include hospitals, parks, airports and houses of worship. GABRIEL WEIMANN, U.S. INSTITUTE OF PEACE: You see many targets mentioned and, if you are involved in psychological warfare you know that the more targets you mention the more panic you cause and it will be harder to defend against the attacks.

ARENA: What's more, Weimann says, even if the postings are pure propaganda, they help terrorists accomplish their goal.

WEIMANN: I think al Qaeda knows that one of the most important values of terrorism is the psychological impact, that is you can widen the scope of the victims by enlarging it to the people who are affected psychologically.

ARENA (on camera): Officials are taking the web chatter very seriously and have reached out to a variety of experts for assistance. Many are convinced al Qaeda is prepared to strike and are intent on not missing any clues.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: Well, on the campaign trail, President Bush heads to Michigan then later to Minnesota today. During a campaign stop in Tennessee on Monday, he insisted America is now a safer place since the U.S. invaded Baghdad. And he justified the war in Iraq as a crucial move in the war on terror.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Although we have not found stockpiles of weapons of mass destruction, we were right to go into Iraq. We removed a declared enemy of America who had the capability of producing weapons of mass murder and could have passed that capability to terrorists bent on acquiring them. In the world after September the 11th, that was a risk we could not afford to take.

(END VIDEO CLIP)

NGUYEN: Elsewhere on the trial, Vice President Dick Cheney used a little humor to get his message about the Democrats across, poking fun at Senator John Edwards, as well as himself.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Somebody said to me the other day that Senator Edwards got picked for his good looks and charm. I said how do you think I got this job? Why is that funny?

(END VIDEO CLIP)

NGUYEN: Yes, why is that funny?

Well, Kerry had a few jokes up his sleeve, too, at a fund-raiser in his home state of Massachusetts. The soon to be Democratic nominee raised $4 million for his campaign at a Democratic party during the day. Then last night musician Jackson Browne gave him the perfect opportunity to make his point.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Jackson wrote a lot of songs about this campaign. I don't know if you know it. But "Knock On Any Door" he wrote for all of our campaign workers out there in the streets of New Hampshire and everywhere else. And "Running On Empty" he wrote for the Republican Party. "The Pretender," well, I'll be nice. I won't go there.

(END VIDEO CLIP)

NGUYEN: And for more in depth coverage of the campaign trail, just visit cnn.com/politics.

Governor Bill Richardson of New Mexico will be a guest in the 8:00 a.m. hour of CNN's "AMERICAN MORNING." He'll tell you what to expect at the Democratic National Convention news conference, which is set to take place this morning.

Still to come here on DAYBREAK, they outnumber men. But how far have women come in the new Iraq? I'll talk with someone who knows how difficult the road ahead could be.

Then, a vacation to Baghdad? Why this American family packed up and visited a war zone.

Then later, pizza for sale on Wall Street.

This is DAYBREAK for July 13.

(COMMERCIAL BREAK)

NGUYEN: Well, good morning on this Tuesday.

Your news, money, weather and sports.

The time is 6:14 Eastern.

Here's what's new this morning.

An American soldier was injured today in Baghdad. It's believed a grenade was thrown at a U.S. Army patrol, causing that soldier's injury. Another blast in the capital injured three Iraqi civilians.

Actress Isabel Sanford has died in Los Angeles of natural causes. She was known for her role as "Weezie" on both "The Jeffersons" and "All In The Family." Isabel Sanford was 86 years old.

In money, the brokerage firm Morgan Stanley has agreed to pay $54 million to settle a sex discrimination suit. The settlement came just one hour before the trial was scheduled to begin.

In culture, what's old becomes new once again. The "New York Times" will run F. Scott Fitzgerald's "Great Gatsby" in its entirety all week. During the 19th century, books were often serialized in newspapers.

In sports, even batting practice pitchers are afraid of Barry Bonds. He was given a playful attempt at an intentional walk in the All Star home run derby last night. The contest was won by the Baltimore Orioles' shortstop, Miguel Tejada.

And this morning, we want to check on the weather and Chad Myers.

(WEATHER REPORT)

NGUYEN: Iraqi women have played a much stronger role in their country than women in many other parts of the Arab world.

So how is their role changing in the new democratic Iraq?

Well, for that and much more on the answers, we turn to Ambassador Swanee Hunt, founder of Women Waging Peace.

She joins us live from Boston this morning.

Thanks for being with us.

AMB. SWANEE HUNT, WOMEN WAGING PEACE: Sure.

NGUYEN: Well, we want to talk about the role of women. It seems like on the forefront, that was the plan. But now that plan had kind of fallen by the wayside.

Why?

HUNT: Well, women in Iraq are very well educated and they have a lot of experience in leadership. Iraq was really a regional leader. So they're very much equipped now to be in positions of leadership.

But when the U.S. came in, the coalition forces gathered and appointed large groups of men and really marginalized the women.

NGUYEN: Why is that? Is that because of security threats? Because there are a lot of folks in Iraq who still do not believe women have a place in that government. So is this a way to hold off on some of those attacks or protests?

HUNT: There was a lot of fear about placating the most conservative elements. And in doing that, in trying to placate them, they really, in a way, augmented the power of those elements.

NGUYEN: But isn't that prudent in a time in that country where security is so volatile?

HUNT: It's just the opposite. The women tend to know what's going on in the neighborhoods. They have their fingers on the pulse. So if you want to answer some of these conundrums that we were hearing the Iraqi foreign minister talk about earlier today, about, you know, we don't know who these groups are, you need to have the women. You must have the women, who are much more in touch with what's going on on the ground.

NGUYEN: And of these women, how many are prepared and ready to assume these roles in the government?

HUNT: There's no problem with supply. The problem is the recognition on the part of the people who have been holding the strings. And that's been the U.S. The big...

NGUYEN: So what do women in Iraq need to do then?

HUNT: Well, the women are organizing all across the country. And what we need to do is to support these homegrown initiatives.

NGUYEN: Sixty percent of the population in Iraq are women. So obviously it's very important for women to pay a huge attention, or to pay huge attention to voting in this upcoming election.

Is there a big push for that?

HUNT: There certainly is. And women are organizing at the grassroots and I, in fact, have led three different trainings of over 80 women.

It's important, though, that as we send in these massive amounts of aid, that we pay attention to making sure that jobs go to women to elevate their role in the society, to increase their power, to work across the conflict lines.

NGUYEN: A lot of progress still to be made in that area.

Ambassador Swanee Hunt, we thank you for your insight this morning.

HUNT: Sure.

NGUYEN: Former Enron CEO Ken Lay says he never expected to be indicted for his company's failure, but says he's confident he'll be cleared of the charges. Lay was indicted last week on 11 counts of fraud. Lay told CNN's Larry King that he isn't the one truly to blame for the hardships suffered by Enron's stockholders and employees.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

KEN LAY, FORMER ENRON CEO: Well, the buck stops here from this standpoint, Larry. And I've said I take responsibility for what happened at Enron, both good and bad. But I cannot take responsible -- responsibly for criminal conduct that I was unaware of.

(END VIDEO CLIP)

NGUYEN: Lay insists the former financial chief, Andrew Fastow, is the one to blame for Enron's financial collapse. Fastow pleaded guilty in January in exchange for a 10-year prison term.

Time now for a little business buzz.

Saying fill her up could empty your wallet this summer.

Carrie Lee has the story and she joins us now from the Nasdaq market site in Times Square.

Boy, do I know it. Every time I go to the pump, it seems like I'm paying more. But things have gotten a little bit better, I must say.

CARRIE LEE, CNN CORRESPONDENT: Well, we actually are now seeing gas prices on the upswing again for the first time in seven weeks. The Energy Department reporting that the average price per gallon for regular, unleaded gasoline, jumped 2.2 cents over the past week, to just under $1.92 a share, the first rise since May 24. Why? Well, a big reason crude oil prices on the rise. Once again, we hit above the $40 a barrel mark for crude. And keep in mind that pump prices are $0.40 a gallon higher than this time a year ago. So a lot of people watching the money that they put into their tanks, especially during the summer driving season.

I want to switch gears and tell you about the country's largest pizza chain. That is Domino's Pizza. It priced its initial public offering last night, 24.1 million shares at $14 each. This happened late last night. The company raised $337.4 million and they are going to start trading today downtown at the New York Stock Exchange under the ticker symbol DPZ.

And that is the latest from here -- Betty.

Oh, Johnson & Johnson, one of the Dow 30, reporting profits this morning. Wall Street looking for $0.79 a share on the bottom line -- back to you.

NGUYEN: All right, Carrie Lee, thank you.

Still to come here on DAYBREAK, forget Florida or even a trip to Vegas. This family went all the way to a war zone for an unforgettable summer vacation.

Then, a flight attendant tells why she never forgot why a few passengers -- or what a few passengers did for a group of American soldiers.

Stay tuned for that story.

(COMMERCIAL BREAK)

NGUYEN: For our DAYBREAK "Eye Opener," a book donation drive for Baghdad University is looking like a huge success. The drive is being led by an alumnus of the Baghdad school who's now a professor at Jacksonville State University in Alabama. So far, he's gotten books and pledges of support from other universities in Alabama, as well as from schools in Texas and California.

Baghdad may not be your typical vacation destination, Chad, but for one family it was an easy choice. The Alsamarraee family made a trip to see relatives still living in Iraq and to expose their children to history in the making. The family says the current situation is much worse than it was when they were last in Iraq, which was back in 1989.

(BEGIN VIDEO CLIP)

SUSAN ALSAMARRAEE: In '89, they had electricity and air conditioner. And you were more free to like go walk around. Anyone could walk around. Now it's you have to have an armed guard, you have to go with a man, you can't go out alone, you have to watch your kids.

(END VIDEO CLIP)

NGUYEN: Susan Alsamarraee says she also took the opportunity to visit with as many American soldiers as she could. And some American soldiers on their way home from Iraq got a little R&R and a pleasant surprise when they boarded their flight because one by one the passengers in the first class cabin gave up their seats to the 12 servicemen and women aboard that flight.

(BEGIN VIDEO CLIP)

LORRIE GAMMON, FLIGHT ATTENDANT: They were almost afraid to take their seats. They were, you know, they were trying to give them back and the businessmen were like, no, you guys sit here. We're going back to main cabin.

We were in the galley trying to keep it straight -- keep it together, because we were crying. It was just such a sweet thing and just amazing what these first class guys were doing for our servicemen.

(END VIDEO CLIP)

NGUYEN: She was almost choked up there.

Well, some of the soldiers got a little choked up by that gesture, of course. So they autographed some of the Iraqi money as a gift to those passengers.

MYERS: Oh, wow. That's nice.

NGUYEN: I don't fly first class. I know you do, Chad, because you're big time.

MYERS: I got upgraded on Delta this weekend. So did all the soldiers. All the soldiers that were on that plane were upgraded to first class.

NGUYEN: And they should be.

MYERS: And they had a good time in first class.

NGUYEN: Oh, did they?

MYERS: They took all the benefits of first class. They had a great time. NGUYEN: They deserve a great time.

MYERS: Yes, they sure did. Absolutely. It was great to see them up there.

NGUYEN: Well, if I did fly, I would definitely give them my seat. I mean my...

MYERS: Well, I had to fly to Carol's wedding so.

NGUYEN: Oh, that's right. And we'll see more pictures of that later this week, right?

MYERS: Yes, and when Carol comes back. I'll save some from her.

NGUYEN: OK. Definitely. It's her day. We don't want to steal the thunder.

MYERS: That's right.

NGUYEN: Here's what's happening in the next half hour.

See who's ahead in the latest polling from the campaign trail and how the addition of Edwards is affecting Kerry's chances for the White House.

Plus, a string of shootings in a two day period. What are police saying about the possible connections?

Then, orphaned by AIDS. What's happening to the children? A new report on the disease's youngest victims.

(COMMERCIAL BREAK)

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Aired July 13, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Could this hostage be freed today? Conflicting reports about negotiations between his country and the abductors.
It's Tuesday, July 13, and this is DAYBREAK.

Well, good morning.

From the CNN Global Headquarters in Atlanta, I'm Betty Nguyen in for Carol Costello.

Now in the news, Manila says it will withdraw its troops from Iraq. In return, abductors of a Filipino truck driver say they will release him today. The kidnappers had threatened to behead the hostage if the troops were not withdrawn by July 20. We'll get a live report out of Baghdad in just two minutes.

Britain's Lord Butler delivers a report on Iraq today to Prime Minister Tony Blair. That report on the prewar intelligence used to justify the war is expected to criticize both the prime minister and big officials. It'll be made public tomorrow.

In the U.S., debate on banning same-sex marriages resumes in just a few hours. A backer of the proposed constitutional amendment says his side is still well short of the votes needed for approval.

Less than 10 minutes ago, NASA scrubbed the launch of the Aura satellite. The Aura is specially equipped to monitor the Earth's atmosphere and changes to the ozone layer. Technical problems led to today's postponement, but NASA is expected to try again later this week.

Keeping you informed, CNN, the most trusted name in news.

And keeping you informed on the weather is Chad Myers -- good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Betty.

(WEATHER REPORT)

NGUYEN: Well, the fate of a Philippine hostage in Iraq is very much in question this morning. Will he be killed or freed? And will his country give in to the demands of his kidnappers?

We want to go live now to Baghdad. Our Michael Holmes is covering this developing story -- good morning.

MICHAEL HOLMES, CNN CORRESPONDENT: Good morning to you.

A very difficult and delicate situation, it has to be said. But it does appear that the Philippine government, certainly sources here within the Philippine embassy on the ground in Baghdad indicating that there is certainly a taking into account, if you like, of the kidnappers' demands. They say that the Filipino group here, that's about 50 troops, will be withdrawn from Iraq, in their words, "as soon as possible." This following on from the kidnappers' demands.

These troops, some 50 of them, have been here for some months. They we're due to leave or their term here was due to expire August 20. But now we're hearing that they will leave "as soon as possible."

The release of the hostage was meant to occur today here in Baghdad. We have been led to believe that this information has been passed on to negotiators here in Iraq and that he will be released today.

Certainly this is not a development that would please either the White House nor, in fact, the Baghdad administration here.

Here's what the foreign minister had to say in Brussels.

(BEGIN VIDEO CLIP)

HOSHYAR ZEBARI, IRAQI FOREIGN MINISTER: The difficulty is really we don't know who are these people. Are they criminal gangs? They don't have an address. They don't have any negotiating mechanisms. So we do our best to do that through intermediaries and through our local security and police authorities.

(END VIDEO CLIP)

HOLMES: Yes, it's certainly a very delicate situation, as I said, certainly for the Philippine government, a very close ally of the United States. The United States certainly wouldn't want such an ally to be seen to be acceding to the demands of kidnappers.

However, it appears that that may be, indeed, what is happening. The government, as I said, saying that they would withdraw their 50 person group here as soon as possible and the release of the hostage expected some time today, or at least that's the information that's being given to the Philippine negotiators, who are dealing through middlemen who are, in turn, dealing with the kidnappers themselves -- Betty.

NGUYEN: Michael, this "as soon as possible" could just be a play on words, because we really don't know if that's going to happen before August 20, which is the scheduled return for those humanitarian aid workers.

HOLMES: That's true. Indeed, that's true. It's very non- specific, isn't it? August 20 is, in terms of days, not all that far away. In terms of life and times here in Baghdad, it's an eternity away.

But, yes, it does give a little bit of what you might call wiggle room. "As soon as possible," does that mean next week? Does it mean the week after? Does it, indeed, mean August 20, as planned?

Betty.

NGUYEN: But if it works, that's all that matters to the family of that hostage.

Thank you.

Michael Holmes.

Well, the threat of the terror attacks is a major problem for the American economy. That's among the points expected to be made today by Treasury Secretary John Snow. Snow is scheduled to tour a plant in Cleveland and afterward will speak about provisions in the Patriot Act. In prepared remarks, Snow says cutting of their cash flow is the best way to fight terror groups.

Some of the latest terror threats are popping up on the Internet. And security officials say some of the postings may provide invaluable clues to pinpointing potential targets for terror.

CNN's Kelli Arena reports.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): This Web site reads in part: "Oh, Allah, destroy America and shake it." This one says: "The decisive battle is approaching."

Such threats are not new to terror experts who scan hundreds of al Qaeda-related Web sites daily but recently some say there is more reason to worry. Experts say threats are coming with greater frequency and from more reliable sources.

EVAN KOHLMAN, GLOBALTERRORALERT.COM: A lot of the chatter that we're seeing is not coming from unidentified, unspecified sources on Internet chat boards. It's coming from the same sources that have predicted before terrorist acts that have actually occurred.

ARENA: One such source warned of attacks in Spain three months before the bombings there in March and distributed video of the beheading of American Nick Berg. It's called Global Islamic Media.

KOHLMAN: It is now saying that the death blows and the approaching battles are coming that the death blows are upon us and that these death blows will not only be horrible but that they are sure to happen.

ARENA: Some of the potential targets mentioned include hospitals, parks, airports and houses of worship. GABRIEL WEIMANN, U.S. INSTITUTE OF PEACE: You see many targets mentioned and, if you are involved in psychological warfare you know that the more targets you mention the more panic you cause and it will be harder to defend against the attacks.

ARENA: What's more, Weimann says, even if the postings are pure propaganda, they help terrorists accomplish their goal.

WEIMANN: I think al Qaeda knows that one of the most important values of terrorism is the psychological impact, that is you can widen the scope of the victims by enlarging it to the people who are affected psychologically.

ARENA (on camera): Officials are taking the web chatter very seriously and have reached out to a variety of experts for assistance. Many are convinced al Qaeda is prepared to strike and are intent on not missing any clues.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: Well, on the campaign trail, President Bush heads to Michigan then later to Minnesota today. During a campaign stop in Tennessee on Monday, he insisted America is now a safer place since the U.S. invaded Baghdad. And he justified the war in Iraq as a crucial move in the war on terror.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Although we have not found stockpiles of weapons of mass destruction, we were right to go into Iraq. We removed a declared enemy of America who had the capability of producing weapons of mass murder and could have passed that capability to terrorists bent on acquiring them. In the world after September the 11th, that was a risk we could not afford to take.

(END VIDEO CLIP)

NGUYEN: Elsewhere on the trial, Vice President Dick Cheney used a little humor to get his message about the Democrats across, poking fun at Senator John Edwards, as well as himself.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Somebody said to me the other day that Senator Edwards got picked for his good looks and charm. I said how do you think I got this job? Why is that funny?

(END VIDEO CLIP)

NGUYEN: Yes, why is that funny?

Well, Kerry had a few jokes up his sleeve, too, at a fund-raiser in his home state of Massachusetts. The soon to be Democratic nominee raised $4 million for his campaign at a Democratic party during the day. Then last night musician Jackson Browne gave him the perfect opportunity to make his point.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Jackson wrote a lot of songs about this campaign. I don't know if you know it. But "Knock On Any Door" he wrote for all of our campaign workers out there in the streets of New Hampshire and everywhere else. And "Running On Empty" he wrote for the Republican Party. "The Pretender," well, I'll be nice. I won't go there.

(END VIDEO CLIP)

NGUYEN: And for more in depth coverage of the campaign trail, just visit cnn.com/politics.

Governor Bill Richardson of New Mexico will be a guest in the 8:00 a.m. hour of CNN's "AMERICAN MORNING." He'll tell you what to expect at the Democratic National Convention news conference, which is set to take place this morning.

Still to come here on DAYBREAK, they outnumber men. But how far have women come in the new Iraq? I'll talk with someone who knows how difficult the road ahead could be.

Then, a vacation to Baghdad? Why this American family packed up and visited a war zone.

Then later, pizza for sale on Wall Street.

This is DAYBREAK for July 13.

(COMMERCIAL BREAK)

NGUYEN: Well, good morning on this Tuesday.

Your news, money, weather and sports.

The time is 6:14 Eastern.

Here's what's new this morning.

An American soldier was injured today in Baghdad. It's believed a grenade was thrown at a U.S. Army patrol, causing that soldier's injury. Another blast in the capital injured three Iraqi civilians.

Actress Isabel Sanford has died in Los Angeles of natural causes. She was known for her role as "Weezie" on both "The Jeffersons" and "All In The Family." Isabel Sanford was 86 years old.

In money, the brokerage firm Morgan Stanley has agreed to pay $54 million to settle a sex discrimination suit. The settlement came just one hour before the trial was scheduled to begin.

In culture, what's old becomes new once again. The "New York Times" will run F. Scott Fitzgerald's "Great Gatsby" in its entirety all week. During the 19th century, books were often serialized in newspapers.

In sports, even batting practice pitchers are afraid of Barry Bonds. He was given a playful attempt at an intentional walk in the All Star home run derby last night. The contest was won by the Baltimore Orioles' shortstop, Miguel Tejada.

And this morning, we want to check on the weather and Chad Myers.

(WEATHER REPORT)

NGUYEN: Iraqi women have played a much stronger role in their country than women in many other parts of the Arab world.

So how is their role changing in the new democratic Iraq?

Well, for that and much more on the answers, we turn to Ambassador Swanee Hunt, founder of Women Waging Peace.

She joins us live from Boston this morning.

Thanks for being with us.

AMB. SWANEE HUNT, WOMEN WAGING PEACE: Sure.

NGUYEN: Well, we want to talk about the role of women. It seems like on the forefront, that was the plan. But now that plan had kind of fallen by the wayside.

Why?

HUNT: Well, women in Iraq are very well educated and they have a lot of experience in leadership. Iraq was really a regional leader. So they're very much equipped now to be in positions of leadership.

But when the U.S. came in, the coalition forces gathered and appointed large groups of men and really marginalized the women.

NGUYEN: Why is that? Is that because of security threats? Because there are a lot of folks in Iraq who still do not believe women have a place in that government. So is this a way to hold off on some of those attacks or protests?

HUNT: There was a lot of fear about placating the most conservative elements. And in doing that, in trying to placate them, they really, in a way, augmented the power of those elements.

NGUYEN: But isn't that prudent in a time in that country where security is so volatile?

HUNT: It's just the opposite. The women tend to know what's going on in the neighborhoods. They have their fingers on the pulse. So if you want to answer some of these conundrums that we were hearing the Iraqi foreign minister talk about earlier today, about, you know, we don't know who these groups are, you need to have the women. You must have the women, who are much more in touch with what's going on on the ground.

NGUYEN: And of these women, how many are prepared and ready to assume these roles in the government?

HUNT: There's no problem with supply. The problem is the recognition on the part of the people who have been holding the strings. And that's been the U.S. The big...

NGUYEN: So what do women in Iraq need to do then?

HUNT: Well, the women are organizing all across the country. And what we need to do is to support these homegrown initiatives.

NGUYEN: Sixty percent of the population in Iraq are women. So obviously it's very important for women to pay a huge attention, or to pay huge attention to voting in this upcoming election.

Is there a big push for that?

HUNT: There certainly is. And women are organizing at the grassroots and I, in fact, have led three different trainings of over 80 women.

It's important, though, that as we send in these massive amounts of aid, that we pay attention to making sure that jobs go to women to elevate their role in the society, to increase their power, to work across the conflict lines.

NGUYEN: A lot of progress still to be made in that area.

Ambassador Swanee Hunt, we thank you for your insight this morning.

HUNT: Sure.

NGUYEN: Former Enron CEO Ken Lay says he never expected to be indicted for his company's failure, but says he's confident he'll be cleared of the charges. Lay was indicted last week on 11 counts of fraud. Lay told CNN's Larry King that he isn't the one truly to blame for the hardships suffered by Enron's stockholders and employees.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

KEN LAY, FORMER ENRON CEO: Well, the buck stops here from this standpoint, Larry. And I've said I take responsibility for what happened at Enron, both good and bad. But I cannot take responsible -- responsibly for criminal conduct that I was unaware of.

(END VIDEO CLIP)

NGUYEN: Lay insists the former financial chief, Andrew Fastow, is the one to blame for Enron's financial collapse. Fastow pleaded guilty in January in exchange for a 10-year prison term.

Time now for a little business buzz.

Saying fill her up could empty your wallet this summer.

Carrie Lee has the story and she joins us now from the Nasdaq market site in Times Square.

Boy, do I know it. Every time I go to the pump, it seems like I'm paying more. But things have gotten a little bit better, I must say.

CARRIE LEE, CNN CORRESPONDENT: Well, we actually are now seeing gas prices on the upswing again for the first time in seven weeks. The Energy Department reporting that the average price per gallon for regular, unleaded gasoline, jumped 2.2 cents over the past week, to just under $1.92 a share, the first rise since May 24. Why? Well, a big reason crude oil prices on the rise. Once again, we hit above the $40 a barrel mark for crude. And keep in mind that pump prices are $0.40 a gallon higher than this time a year ago. So a lot of people watching the money that they put into their tanks, especially during the summer driving season.

I want to switch gears and tell you about the country's largest pizza chain. That is Domino's Pizza. It priced its initial public offering last night, 24.1 million shares at $14 each. This happened late last night. The company raised $337.4 million and they are going to start trading today downtown at the New York Stock Exchange under the ticker symbol DPZ.

And that is the latest from here -- Betty.

Oh, Johnson & Johnson, one of the Dow 30, reporting profits this morning. Wall Street looking for $0.79 a share on the bottom line -- back to you.

NGUYEN: All right, Carrie Lee, thank you.

Still to come here on DAYBREAK, forget Florida or even a trip to Vegas. This family went all the way to a war zone for an unforgettable summer vacation.

Then, a flight attendant tells why she never forgot why a few passengers -- or what a few passengers did for a group of American soldiers.

Stay tuned for that story.

(COMMERCIAL BREAK)

NGUYEN: For our DAYBREAK "Eye Opener," a book donation drive for Baghdad University is looking like a huge success. The drive is being led by an alumnus of the Baghdad school who's now a professor at Jacksonville State University in Alabama. So far, he's gotten books and pledges of support from other universities in Alabama, as well as from schools in Texas and California.

Baghdad may not be your typical vacation destination, Chad, but for one family it was an easy choice. The Alsamarraee family made a trip to see relatives still living in Iraq and to expose their children to history in the making. The family says the current situation is much worse than it was when they were last in Iraq, which was back in 1989.

(BEGIN VIDEO CLIP)

SUSAN ALSAMARRAEE: In '89, they had electricity and air conditioner. And you were more free to like go walk around. Anyone could walk around. Now it's you have to have an armed guard, you have to go with a man, you can't go out alone, you have to watch your kids.

(END VIDEO CLIP)

NGUYEN: Susan Alsamarraee says she also took the opportunity to visit with as many American soldiers as she could. And some American soldiers on their way home from Iraq got a little R&R and a pleasant surprise when they boarded their flight because one by one the passengers in the first class cabin gave up their seats to the 12 servicemen and women aboard that flight.

(BEGIN VIDEO CLIP)

LORRIE GAMMON, FLIGHT ATTENDANT: They were almost afraid to take their seats. They were, you know, they were trying to give them back and the businessmen were like, no, you guys sit here. We're going back to main cabin.

We were in the galley trying to keep it straight -- keep it together, because we were crying. It was just such a sweet thing and just amazing what these first class guys were doing for our servicemen.

(END VIDEO CLIP)

NGUYEN: She was almost choked up there.

Well, some of the soldiers got a little choked up by that gesture, of course. So they autographed some of the Iraqi money as a gift to those passengers.

MYERS: Oh, wow. That's nice.

NGUYEN: I don't fly first class. I know you do, Chad, because you're big time.

MYERS: I got upgraded on Delta this weekend. So did all the soldiers. All the soldiers that were on that plane were upgraded to first class.

NGUYEN: And they should be.

MYERS: And they had a good time in first class.

NGUYEN: Oh, did they?

MYERS: They took all the benefits of first class. They had a great time. NGUYEN: They deserve a great time.

MYERS: Yes, they sure did. Absolutely. It was great to see them up there.

NGUYEN: Well, if I did fly, I would definitely give them my seat. I mean my...

MYERS: Well, I had to fly to Carol's wedding so.

NGUYEN: Oh, that's right. And we'll see more pictures of that later this week, right?

MYERS: Yes, and when Carol comes back. I'll save some from her.

NGUYEN: OK. Definitely. It's her day. We don't want to steal the thunder.

MYERS: That's right.

NGUYEN: Here's what's happening in the next half hour.

See who's ahead in the latest polling from the campaign trail and how the addition of Edwards is affecting Kerry's chances for the White House.

Plus, a string of shootings in a two day period. What are police saying about the possible connections?

Then, orphaned by AIDS. What's happening to the children? A new report on the disease's youngest victims.

(COMMERCIAL BREAK)

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