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CNN Live At Daybreak

Discussing Interview with Deputy Secretary of State Armitage About Hunt for Bin Laden; International AIDS Conference in Bangkok, Thailand

Aired July 15, 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.


FREDRICKA WHITFIELD, CNN ANCHOR: Al Qaeda, Osama bin Laden and the threat of nuclear weapons -- Secretary of State Colin Powell's trusted number two sits down with CNN this morning.
It's Thursday, July 15, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.

Now in the news, the issue of what happened at Iraq's Abu Ghraib Prison is back on Capitol Hill today. The Senate Armed Services Committee will get a closed door briefing on the investigations into the abuse of Iraqi prisoners by some U.S. troops.

Still on Capitol Hill, the House has overwhelmingly voted for a free trade agreement with Australia. Australia's prime minister is lobbying his government today to back the agreement.

A Moroccan-born suspect in those deadly Madrid, Spain bombings in March was charged today with collaborating with a terrorist group. The bombings killed 190 people.

What's your favorite, "West Wing" or the "Sopranos?" Nominations for the annual prime time Emmy Awards will be announced a little more than two hours from now.

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

Well, let's check in with Chad, who doesn't watch television.

CHAD MYERS, CNN METEOROLOGIST: I do not.

WHITFIELD: And you have no favorites.

MYERS: I don't -- actually, I do not.

WHITFIELD: It's time for you to get TiVo, I think.

MYERS: I have one and my wife just gobbles it up.

WHITFIELD: What is the problem?

MYERS: Whenever I go to tape something, it says oh, I'm sorry, that time slot already taken. And she's taping something already so.

WHITFIELD: Oh, no, maybe you need to get a new manual.

MYERS: She does like that new movie, the new show, "Nip Tuck," though. That's kind of...

WHITFIELD: That's one I haven't seen.

MYERS: I can't watch it. I try to watch it with her and I just go all right, that's it, I'm done. I'm out of here. They're cutting into people and that's not...

WHITFIELD: That's not what the folks are looking for (UNINTELLIGIBLE).

(WEATHER REPORT)

WHITFIELD: A top U.S. State Department official tells CNN he believes Osama bin Laden will be caught and that the Taliban that protected him will also face justice. Richard Armitage made the remarks today in Pakistan. CNN is the only U.S. network to interview the deputy secretary of state.

Our Ash-Har Quraishi interviewed Armitage and Ash-Har joins us now from Islamabad -- Ash-Har.

ASH-HAR QURAISHI, CNN CORRESPONDENT: Good morning, Fredricka.

That's right, the deputy secretary of state arrived here in Islamabad on Wednesday. He's meeting with Pakistani officials. The agenda, of course, will be discussing bilateral relations, as well as the situation in Iraq, and, of course, the war on terror.

Now, when we sat down with him, we asked him about the war on terror and how that was going, and as to whether or not, between Islamabad and Washington, there was any new intelligence about the whereabouts of Osama bin Laden.

(BEGIN VIDEO CLIP)

RICHARD ARMITAGE, DEPUTY SECRETARY OF STATE: I certainly don't know where he is and I don't think our friends here in Pakistan know. I would note that a colleague of Osama bin Laden's has just been returned to Saudi Arabia and we'll be obviously interested to learn what he knows. I have no doubt some day, at one point in time, that Osama bin Laden will be found out and will be brought to justice.

(END VIDEO CLIP)

QURAISHI: Now, the question of when Osama bin Laden might be brought to justice has been high on the minds of people in Pakistan, as well as in the United States. There have been reports that the U.S. administration, the Bush administration may be putting increased pressure on Pakistan to try and deliver him before the November elections as some sort of a boost to the Bush reelection campaign.

Now, we asked Mr. Armitage whether or not there had been an increase in pressure on Pakistan in recent weeks to try and do that.

(BEGIN VIDEO CLIP)

ARMITAGE: I think it's as much in Pakistan's interests as the United States. I think the -- jointly, we believe that this fellow has to be brought to justice. But there hasn't been any association with the election.

(END VIDEO CLIP)

QURAISHI: Now, Fredricka, earlier this week the Pakistani government also denied those reports, saying that no timetable can be put on when and if Osama bin Laden is caught alive here in Pakistan or whether or not he's even in Pakistan. So denials coming from both sides of the administration here in Pakistan, now coming from the U.S. administration, Mr. Armitage saying that to us today. But he's saying also that they're very satisfied with the work that Pakistan has been doing to root out al Qaeda fighters, particularly in the northwest tribal areas of Pakistan along that Afghan border -- Fredricka.

WHITFIELD: And, Ash-Har, given that the interview took place in Pakistan, did Armitage say anything about the tensions over nuclear weapons in that country?

QURAISHI: Well, that was something we asked him about. There had been, of course, the nuclear proliferation scandal earlier this week. A top Pakistani scientist, Dr. A.Q. Khan, found to be guilty of passing on secrets to countries like North Korea, Iran and Libya.

We asked Mr. Armitage about what kinds of measures they were looking for from the Pakistani government in trying to safeguard its nuclear secrets from being leaked, from being passed on to other nations, as well as terrorists.

Mr. Armitage telling us today that he was very satisfied.

(BEGIN VIDEO CLIP)

ARMITAGE: We've worked very rigorously with the government of Pakistan, with their willing cooperation, to talk about safeguarding measures. We've had discussions both here and in Washington and we're quite satisfied that we're on a good track.

We're concerned about the possibility of nuclear technology from any country falling into the hands of terrorists. But I would note the efforts of the government of Pakistan in the A.Q. Khan situation. The government of Pakistan has been quite transparent with us and is cooperating with us fully and we're quite satisfied.

(END VIDEO CLIP)

QURAISHI: Now, Fredricka, as we have reported, of course, Dr. A.Q. Khan was pardoned by the Pakistani government for passing on those secrets. Pakistan has not agreed to pass on any of the documents from the investigation it's been conducting here in Pakistan through the IAEA, the International Atomic Energy Agency. But so far the understanding that we get from the Pakistani officials is that they are working with the U.S. government, they are working with the Bush administration and trying to safeguard those nuclear secrets and they are putting into practice the measures to try and prevent this type of leakage from happening in the future -- Fredricka.

WHITFIELD: And, Ash-Har, back in the headlines is a U.S. Army sergeant who defected to North Korea 39 years ago, Charles Jenkins.

What is the U.S.' position on whether they're going to try and pursue any charges against him for defecting many years back?

QURAISHI: Well, it's a good question. Now, Mr. Jenkins did travel to Indonesia to be reunited with his wife. Indonesia, as you know, does not have an extradition treaty with the United States, so there was no question about what would happen to him if he did travel to Indonesia at that point.

Now, we asked Mr. Armitage if and when Mr. Jenkins does travel to Japan, which does have an extradition treaty with the United States, whether or not the United States would try and extradite him or whether any charges would be brought against him.

Mr. Armitage giving us some semblance of an answer.

(BEGIN VIDEO CLIP)

ARMITAGE: I think it's an open question. Mr. Jenkins met with his wife and daughter in Indonesia. My understanding is he'll be going to Japan. I'm sure that the U.S. military authorities will be discussing this with the Japanese. Charles Jenkins, as I recall, is 65 years of age or older and in not great health. So we'll have to see what happens.

(END VIDEO CLIP)

QURAISHI: So, Fredricka, on that issue, the issue of Charles Jenkins' possible extradition from Japan if and when he travels there, Mr. Armitage saying we're just going to have to wait and see -- Fredricka.

WHITFIELD: Ash-Har Quraishi, thanks very much, from Islamabad.

Well, there have been some new demonstrations in the Iraqi capital today, but not against U.S. or coalition forces. Instead, they're protesting against the United -- instead of protesting against the United States and President Bush, rather, the Iraqis were demonstrating against deposed leader Saddam Hussein. The demonstrators burned an effigy of the former leader.

A car bomb in the city of Haditha today killed 10 Iraqis, including four police officers. Separately, two suspected suicide car bombers were killed in Karbala. On Wednesday, 11 people died in a car bombing in Baghdad.

The Philippines government appears to be pulling its troops out of Iraq early as demanded by the captors of a Filipino hostage. The kidnappers say they will release their hostage if the troop pullout is complete by July 20.

U.S. Marine Corporal Wassef Ali Hassoun left a U.S. air base in Germany just about two hours ago and is due to the States in about five hours from now. Hassoun was reported captured and then released by Iraqi insurgents earlier this month.

A campaign strategist for President Bush calls it "inside the beltway coffee talk." The rumor reported in this morning's "New York Times" is that Vice President Dick Cheney's new doctor will tell him next month that he's physically unfit to run for reelection. Some in Washington want Cheney replaced on the Bush reelection ticket, but nothing like that has been heard from the president.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: He's made it very clear that he wants me to run again. The way I got here in the first place was that he persuaded me four years ago that I was the man he wanted in that post, not just as a candidate, but as somebody to be a part of the governing team. And he's been very clear he doesn't want to break up the team.

(END VIDEO CLIP)

WHITFIELD: As for the rumor, Cheney said, well: "When we get to the convention I think we'll put that rumor to the end."

Senator John Edwards stumps the Midwest on his first day of campaigning without running mate John Kerry. Edwards commented on Senate Republicans' failure to get a proposed constitutional amendment to the Senate floor for a vote. The amendment would outlaw same-sex marriage.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: The president and the vice president tried to use our constitution as a device, a political device, to divide this country. And Democrats and Republicans rejected this politics of division and said no.

(END VIDEO CLIP)

WHITFIELD: Senator John Kerry addresses the NAACP convention this morning in Philadelphia and campaigns this afternoon in West Virginia.

President Bush has no campaign appearances scheduled for today.

Well, the United States ranks eighth in the U.N.'s 2004 Human Development Index. It's based on per capita income, educational levels, health care and life expectancy. Number one this year is Norway, followed by Sweden, Australia, Canada and the Netherlands. Next come Belgium, Iceland, the United States, Japan and Ireland. Finishing last, 177th place, is Sierra Leone.

The struggle for simplified AIDS treatment, combining drugs into few pills or maybe just one, began with companies in the developing world. But the effort has spread to the major pharmaceutical firms in the United States and it could revolutionize AIDS treatment worldwide.

CNN medical correspondent Christy Feig is at the International AIDS Conference in Bangkok, Thailand.

(BEGIN VIDEOTAPE)

CHRISTY FEIG, CNN CORRESPONDENT (voice-over): Dr. Bruce Rashbaum has been on the front line of the fight against HIV/AIDS for years, both as a doctor and a patient. He knows firsthand the pain of battling the disease and the complications of treating it.

DR. BRUCE RASHBAUM, INTERNIST: In 1997, I took 20 pills. Other patients certainly could have taken more than that. Some people probably took 30 pills.

FEIG: That's every day. But now, that's changing. Pharmaceutical companies are combining the drug cocktail into fewer pills so patients could get the same powerful medicine with only one or two pills a day.

(on camera): There are currently three of these combined pills in the U.S. waiting for FDA approval and there is talk several different pharmaceutical companies could join forces and combine their drugs and create even more.

(voice-over): But it wasn't the big U.S. pharmaceutical companies that spurred this trend of combining medicine. It started the with generic drug companies in Asia and Africa that were making cheaper versions of the U.S. drugs for countries most desperate for them.

However, in those developing countries, many people can't read and experts say some are not taking the complicated drug regimens properly. Now the goal is to combine simplicity and safety.

DR. JIM KIM, WORLD HEALTH ORGANIZATION: That's the holy grail in terms of chronic treatment, that you try to get a one a day pill that you can give to, you know, patients.

RASHBAUM: These make it very simple -- once a day, with or without food, minimal side effects. It lessens the chance of resistance.

FEIG: And less resistance to medicine means patients can live longer, better lives.

Christy Feig, CNN, Bangkok.

(END VIDEOTAPE)

WHITFIELD: Well, here are some stories making news across America this Thursday.

Dramatic pictures of devastation in southern Pennsylvania. More than a dozen people were sent to the hospital after high winds tore through this neighborhood in Campbelltown. One person remains in critical condition. At least 30 homes were destroyed or heavily damages. Coming up later in the hour, we'll have a live report from one of the shelters housing those who have lost their homes.

A massive construction project is being proposed for downtown Los Angeles. The $1 billion development would include a hotel, a shopping area, a concert theater and a large condominium complex. Developers say the project would be the biggest ever in L.A. and could bring 20,000 jobs to the area.

On its third try, NASA successfully launched the Aura satellite into space just a few minutes ago. The Aura is the most sophisticated ever sent to study the Earth's atmosphere. The equipment will give NASA its most accurate measurement of the ozone layer. Technical problems caused the launch to be delayed both yesterday and Tuesday.

Still much more on DAYBREAK.

Straight ahead, John Kerry makes an appearance where President Bush refuses to go. We'll get an update from the campaign trail.

Two Michigan families get tragic news about their teenaged sons. We'll tell you how a mistake makes an awful story even worse.

And two casinos take a big gamble on a merger. We'll tell you who Wall Street is betting on.

And the best of the small screen -- the Emmy nominations are today.

This is DAYBREAK for Thursday, July 15.

(COMMERCIAL BREAK)

WHITFIELD: Your news, money, weather and sports.

It is now about 17 minutes after the hour and here's what's all new this morning.

The judge in the Scott Peterson trial will hear a defense motion on a mistrial. Defense attorneys claim the lead detective in the case lied on the stand during earlier testimony.

Oil prices are back up. The price per barrel rose to a six week high of more than $41. Concerns over security and supply led to surges in the prices.

In money, a little iPod has had a big effect on profits. Apple Computer says profits have tripled thanks to demand for the iPod and their new Macs.

In culture, Subway is bringing back that Jared guy. It's part of their new campaign to fight childhood obesity. Jared will appear in commercials with three kids who lost weight while eating at Subway. And in sports, the diesel has left L.A. Lakers center Shaquille O'Neal was officially traded to the Miami Heat for three players and a draft pick. We'll have more on Shaq, Kobe and the Lakers coming up a little bit later.

And guess what, Chad?

MYERS: Hey, what?

WHITFIELD: A little clarification.

MYERS: Go ahead.

WHITFIELD: So Lakers are offering Kobe $136 million over seven years to say.

MYERS: Seven years.

WHITFIELD: Or the Clippers say $106 million over six years.

MYERS: Does it matter?

WHITFIELD: Well, I guess...

MYERS: At that point...

WHITFIELD: ... it does in terms of, you know, if he wants to go with a team that's kind of starting to shape itself or does he want to stick with the team that he knows, even though they've lost, you know, a big player?

MYERS: Right.

WHITFIELD: And so many are saying they really are not a strong team anymore.

MYERS: Sure.

WHITFIELD: Go figure.

MYERS: But it's still winning the lottery one way or the other.

WHITFIELD: Yes, it's over $100 million.

MYERS: Hey, good morning, everybody.

WHITFIELD: OK.

(WEATHER REPORT)

WHITFIELD: Well, time for a little business buzz. Viva Las Vegas. Harrah's hopes to hit the jackpot with a billion dollar deal.

Carrie Lee reports.

She's at the Nasdaq market site in Times Square -- hello, Carrie. CARRIE LEE, CNN CORRESPONDENT: Hi, Fredricka.

A $5.2 billion deal -- that's the price tag for Harrah's purchase of Caesars, according to published reports. We're expecting the official announcement to come today. Harrah's is expected to buy its rival and this would create the world's largest casino operator, together with $8.8 billion in annual sales and operating more than 50 casinos, with a sizable presence in nearly every major legalized U.S. gambling market.

Caesars is known for its glitzy Caesar Palace, Bali's, other -- some other brands. Harrah's is better known as a technology and marketing savvy company. So it could very well be a good pairing. And, also, this comes following the MGM-Mirage deal to acquire Mandalay Resort Group for $4.8 billion. So regulators are going to have to consider that there are now likely to be two very big players in this space. Most people on Wall Street, though, expect the deals to pass without a problem. So, we will see.

But that is the latest in the gambling space.

Taking a look at stocks today, futures looking pretty flat for today's session. One name that could do well, though, Apple Computer, reporting profits last night. Profits more than tripled from the year ago period on strong sales for its computers and staggering demand for its iPod portable music players. The stock was gaining about 7 percent in the after hours session. We'll see what it does today.

And that is the latest business news.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

WHITFIELD: Well, time for our DAYBREAK "Eye Opener."

The original Heisman trophy is for sale.

MYERS: Whoa!

WHITFIELD: But not just to anyone. So forget putting in a bid, Chad.

The Florida family that owns the original has handpicked 150 sports and businesspeople who will be allowed to bid on the prize. It's expected to fetch well over $1 million. The trophy for college football's best player was first awarded to Jay Berwanger back in 1935.

Well, home sickness or alien abduction -- they're on the lookout for a missing cow in Boring, Oregon. The animal went missing from its pen just one day after its owner brought it home. There were no signs of escape, so the owner said it's possible that the 700-pound animal jumped the fence. I guess they'll keep looking until the cows come home.

MYERS: (UNINTELLIGIBLE).

WHITFIELD: Now for another cow story, farm equipment giant John Deere has developed a video game for virtual farmers. In the game, you can grow crops and, yes, even milk cows. But watch out -- players also have to deal with fluctuating market prices and the occasional plague.

MYERS: Oh, of course.

WHITFIELD: Oh, god. Go figure.

And in southwestern Pennsylvania, there's still a lot of activity.

MYERS: Yes, exactly. Central Pennsylvania, as well. You probably have never heard of this town, Campbelltown, Pennsylvania. They got really hit hard yesterday.

WHITFIELD: (UNINTELLIGIBLE).

MYERS: I'm sure you've heard of a place called Hershey, Pennsylvania. Obviously, the Hershey bar, right? Only about five miles away from this. Folks came back from this town from yesterday from going to work to Campbelltown, Pennsylvania and all of a sudden they saw nothing. Basically their house -- some of them were gone.

WHITFIELD: That's a remarkable sight.

MYERS: We have an affiliate here, Kevin Henry from WHTM there, is basically outside the shelter, I think, it looks like, or somewhere there. It looks like you're in a pretty good shape this morning. How are the rest of the folks there?

KEVIN HENRY, WHTM CORRESPONDENT: Well, folks are trying to regroup this morning, Chad, that's for certain. We're not even allowed close to it right now, it is that bad. It's been described as a war zone in the Country Squire neighborhood.

The National Weather Service is actually going to be here around 9:00 a.m. to determine if this, indeed, was a tornado.

Let's take a look at some pictures, some aerial shots that we shot yesterday right after this storm touched down. It hit around mid-afternoon, like I said, in the Country Squire development. That's in South Londonderry Township, Lebanon County, P.A.

There are 80 homes in there. We're told anywhere from 30 to 50 homes could be destroyed. Witnesses said they saw a funnel cloud and they heard that sound of a train blowing through. In just a matter of minutes, a few dozen homes, as I said, they were gone.

A number of folks were allowed back in their homes last night after inspectors checked them out and deemed them structurally sound. Unfortunately for the rest, all they can do is sit and look and see what is left of their homes, pick up the pieces, try to salvage what's inside. Now, there is a Red Cross shelter right here, the Campbelltown Fire Department. They set it up right after this storm touched down. A hundred and fifty people converged on this to see what they should do. After a kind of a system in which they gave their addresses and they gave their keys, they waited in there. Then the inspectors came back and said, OK, who lives at so and so and such and such? And they gave them the keys back and said, OK, your home is OK. You're allowed back in.

We should also say, Chad, this storm injured 16 people, one of them critically.

MYERS: Yes.

HENRY: And emergency crews we've been talking to say, you know, only 16? A lot of people were at work. They say considering this devastation and all of this damage, there should have been a whole lot more than that. So a lot of folks are lucky.

But they do say that this damage, don't tell them it wasn't a tornado. Our weather guys, in fact, say what they've seen, they think it's a tornado. But, again, the National Weather Service is going to check in this morning to check it out to be sure -- Chad, back to you.

MYERS: Do they have sirens? Were the sirens going off?

HENRY: The sirens were going. There was all kinds of activity going on here yesterday. There was nothing -- there's nothing going on -- all is relatively quiet, just another beautiful morning in south central P.A. But yesterday, it was just bedlam. And you know on live TV, we have live trucks where you have to put the mast up. We couldn't put the mast up because of the lightning.

MYERS: Yes.

HENRY: And the wind and all of that.

MYERS: Sure.

HENRY: So it was, to say the least, a crazy day here in Pennsylvania.

MYERS: I guess so.

Kevin, thank you very much.

I've -- I worked in Oklahoma City long enough to know that the video that I saw from that aerial was absolutely tornado damage. There's just no way around that. But obviously they'll be looking at that at nine o'clock. The Weather Service will be out there doing that assessment.

DAYBREAK will be right back after this.

(COMMERCIAL BREAK)

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Aired July 15, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Al Qaeda, Osama bin Laden and the threat of nuclear weapons -- Secretary of State Colin Powell's trusted number two sits down with CNN this morning.
It's Thursday, July 15, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.

Now in the news, the issue of what happened at Iraq's Abu Ghraib Prison is back on Capitol Hill today. The Senate Armed Services Committee will get a closed door briefing on the investigations into the abuse of Iraqi prisoners by some U.S. troops.

Still on Capitol Hill, the House has overwhelmingly voted for a free trade agreement with Australia. Australia's prime minister is lobbying his government today to back the agreement.

A Moroccan-born suspect in those deadly Madrid, Spain bombings in March was charged today with collaborating with a terrorist group. The bombings killed 190 people.

What's your favorite, "West Wing" or the "Sopranos?" Nominations for the annual prime time Emmy Awards will be announced a little more than two hours from now.

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

Well, let's check in with Chad, who doesn't watch television.

CHAD MYERS, CNN METEOROLOGIST: I do not.

WHITFIELD: And you have no favorites.

MYERS: I don't -- actually, I do not.

WHITFIELD: It's time for you to get TiVo, I think.

MYERS: I have one and my wife just gobbles it up.

WHITFIELD: What is the problem?

MYERS: Whenever I go to tape something, it says oh, I'm sorry, that time slot already taken. And she's taping something already so.

WHITFIELD: Oh, no, maybe you need to get a new manual.

MYERS: She does like that new movie, the new show, "Nip Tuck," though. That's kind of...

WHITFIELD: That's one I haven't seen.

MYERS: I can't watch it. I try to watch it with her and I just go all right, that's it, I'm done. I'm out of here. They're cutting into people and that's not...

WHITFIELD: That's not what the folks are looking for (UNINTELLIGIBLE).

(WEATHER REPORT)

WHITFIELD: A top U.S. State Department official tells CNN he believes Osama bin Laden will be caught and that the Taliban that protected him will also face justice. Richard Armitage made the remarks today in Pakistan. CNN is the only U.S. network to interview the deputy secretary of state.

Our Ash-Har Quraishi interviewed Armitage and Ash-Har joins us now from Islamabad -- Ash-Har.

ASH-HAR QURAISHI, CNN CORRESPONDENT: Good morning, Fredricka.

That's right, the deputy secretary of state arrived here in Islamabad on Wednesday. He's meeting with Pakistani officials. The agenda, of course, will be discussing bilateral relations, as well as the situation in Iraq, and, of course, the war on terror.

Now, when we sat down with him, we asked him about the war on terror and how that was going, and as to whether or not, between Islamabad and Washington, there was any new intelligence about the whereabouts of Osama bin Laden.

(BEGIN VIDEO CLIP)

RICHARD ARMITAGE, DEPUTY SECRETARY OF STATE: I certainly don't know where he is and I don't think our friends here in Pakistan know. I would note that a colleague of Osama bin Laden's has just been returned to Saudi Arabia and we'll be obviously interested to learn what he knows. I have no doubt some day, at one point in time, that Osama bin Laden will be found out and will be brought to justice.

(END VIDEO CLIP)

QURAISHI: Now, the question of when Osama bin Laden might be brought to justice has been high on the minds of people in Pakistan, as well as in the United States. There have been reports that the U.S. administration, the Bush administration may be putting increased pressure on Pakistan to try and deliver him before the November elections as some sort of a boost to the Bush reelection campaign.

Now, we asked Mr. Armitage whether or not there had been an increase in pressure on Pakistan in recent weeks to try and do that.

(BEGIN VIDEO CLIP)

ARMITAGE: I think it's as much in Pakistan's interests as the United States. I think the -- jointly, we believe that this fellow has to be brought to justice. But there hasn't been any association with the election.

(END VIDEO CLIP)

QURAISHI: Now, Fredricka, earlier this week the Pakistani government also denied those reports, saying that no timetable can be put on when and if Osama bin Laden is caught alive here in Pakistan or whether or not he's even in Pakistan. So denials coming from both sides of the administration here in Pakistan, now coming from the U.S. administration, Mr. Armitage saying that to us today. But he's saying also that they're very satisfied with the work that Pakistan has been doing to root out al Qaeda fighters, particularly in the northwest tribal areas of Pakistan along that Afghan border -- Fredricka.

WHITFIELD: And, Ash-Har, given that the interview took place in Pakistan, did Armitage say anything about the tensions over nuclear weapons in that country?

QURAISHI: Well, that was something we asked him about. There had been, of course, the nuclear proliferation scandal earlier this week. A top Pakistani scientist, Dr. A.Q. Khan, found to be guilty of passing on secrets to countries like North Korea, Iran and Libya.

We asked Mr. Armitage about what kinds of measures they were looking for from the Pakistani government in trying to safeguard its nuclear secrets from being leaked, from being passed on to other nations, as well as terrorists.

Mr. Armitage telling us today that he was very satisfied.

(BEGIN VIDEO CLIP)

ARMITAGE: We've worked very rigorously with the government of Pakistan, with their willing cooperation, to talk about safeguarding measures. We've had discussions both here and in Washington and we're quite satisfied that we're on a good track.

We're concerned about the possibility of nuclear technology from any country falling into the hands of terrorists. But I would note the efforts of the government of Pakistan in the A.Q. Khan situation. The government of Pakistan has been quite transparent with us and is cooperating with us fully and we're quite satisfied.

(END VIDEO CLIP)

QURAISHI: Now, Fredricka, as we have reported, of course, Dr. A.Q. Khan was pardoned by the Pakistani government for passing on those secrets. Pakistan has not agreed to pass on any of the documents from the investigation it's been conducting here in Pakistan through the IAEA, the International Atomic Energy Agency. But so far the understanding that we get from the Pakistani officials is that they are working with the U.S. government, they are working with the Bush administration and trying to safeguard those nuclear secrets and they are putting into practice the measures to try and prevent this type of leakage from happening in the future -- Fredricka.

WHITFIELD: And, Ash-Har, back in the headlines is a U.S. Army sergeant who defected to North Korea 39 years ago, Charles Jenkins.

What is the U.S.' position on whether they're going to try and pursue any charges against him for defecting many years back?

QURAISHI: Well, it's a good question. Now, Mr. Jenkins did travel to Indonesia to be reunited with his wife. Indonesia, as you know, does not have an extradition treaty with the United States, so there was no question about what would happen to him if he did travel to Indonesia at that point.

Now, we asked Mr. Armitage if and when Mr. Jenkins does travel to Japan, which does have an extradition treaty with the United States, whether or not the United States would try and extradite him or whether any charges would be brought against him.

Mr. Armitage giving us some semblance of an answer.

(BEGIN VIDEO CLIP)

ARMITAGE: I think it's an open question. Mr. Jenkins met with his wife and daughter in Indonesia. My understanding is he'll be going to Japan. I'm sure that the U.S. military authorities will be discussing this with the Japanese. Charles Jenkins, as I recall, is 65 years of age or older and in not great health. So we'll have to see what happens.

(END VIDEO CLIP)

QURAISHI: So, Fredricka, on that issue, the issue of Charles Jenkins' possible extradition from Japan if and when he travels there, Mr. Armitage saying we're just going to have to wait and see -- Fredricka.

WHITFIELD: Ash-Har Quraishi, thanks very much, from Islamabad.

Well, there have been some new demonstrations in the Iraqi capital today, but not against U.S. or coalition forces. Instead, they're protesting against the United -- instead of protesting against the United States and President Bush, rather, the Iraqis were demonstrating against deposed leader Saddam Hussein. The demonstrators burned an effigy of the former leader.

A car bomb in the city of Haditha today killed 10 Iraqis, including four police officers. Separately, two suspected suicide car bombers were killed in Karbala. On Wednesday, 11 people died in a car bombing in Baghdad.

The Philippines government appears to be pulling its troops out of Iraq early as demanded by the captors of a Filipino hostage. The kidnappers say they will release their hostage if the troop pullout is complete by July 20.

U.S. Marine Corporal Wassef Ali Hassoun left a U.S. air base in Germany just about two hours ago and is due to the States in about five hours from now. Hassoun was reported captured and then released by Iraqi insurgents earlier this month.

A campaign strategist for President Bush calls it "inside the beltway coffee talk." The rumor reported in this morning's "New York Times" is that Vice President Dick Cheney's new doctor will tell him next month that he's physically unfit to run for reelection. Some in Washington want Cheney replaced on the Bush reelection ticket, but nothing like that has been heard from the president.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: He's made it very clear that he wants me to run again. The way I got here in the first place was that he persuaded me four years ago that I was the man he wanted in that post, not just as a candidate, but as somebody to be a part of the governing team. And he's been very clear he doesn't want to break up the team.

(END VIDEO CLIP)

WHITFIELD: As for the rumor, Cheney said, well: "When we get to the convention I think we'll put that rumor to the end."

Senator John Edwards stumps the Midwest on his first day of campaigning without running mate John Kerry. Edwards commented on Senate Republicans' failure to get a proposed constitutional amendment to the Senate floor for a vote. The amendment would outlaw same-sex marriage.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: The president and the vice president tried to use our constitution as a device, a political device, to divide this country. And Democrats and Republicans rejected this politics of division and said no.

(END VIDEO CLIP)

WHITFIELD: Senator John Kerry addresses the NAACP convention this morning in Philadelphia and campaigns this afternoon in West Virginia.

President Bush has no campaign appearances scheduled for today.

Well, the United States ranks eighth in the U.N.'s 2004 Human Development Index. It's based on per capita income, educational levels, health care and life expectancy. Number one this year is Norway, followed by Sweden, Australia, Canada and the Netherlands. Next come Belgium, Iceland, the United States, Japan and Ireland. Finishing last, 177th place, is Sierra Leone.

The struggle for simplified AIDS treatment, combining drugs into few pills or maybe just one, began with companies in the developing world. But the effort has spread to the major pharmaceutical firms in the United States and it could revolutionize AIDS treatment worldwide.

CNN medical correspondent Christy Feig is at the International AIDS Conference in Bangkok, Thailand.

(BEGIN VIDEOTAPE)

CHRISTY FEIG, CNN CORRESPONDENT (voice-over): Dr. Bruce Rashbaum has been on the front line of the fight against HIV/AIDS for years, both as a doctor and a patient. He knows firsthand the pain of battling the disease and the complications of treating it.

DR. BRUCE RASHBAUM, INTERNIST: In 1997, I took 20 pills. Other patients certainly could have taken more than that. Some people probably took 30 pills.

FEIG: That's every day. But now, that's changing. Pharmaceutical companies are combining the drug cocktail into fewer pills so patients could get the same powerful medicine with only one or two pills a day.

(on camera): There are currently three of these combined pills in the U.S. waiting for FDA approval and there is talk several different pharmaceutical companies could join forces and combine their drugs and create even more.

(voice-over): But it wasn't the big U.S. pharmaceutical companies that spurred this trend of combining medicine. It started the with generic drug companies in Asia and Africa that were making cheaper versions of the U.S. drugs for countries most desperate for them.

However, in those developing countries, many people can't read and experts say some are not taking the complicated drug regimens properly. Now the goal is to combine simplicity and safety.

DR. JIM KIM, WORLD HEALTH ORGANIZATION: That's the holy grail in terms of chronic treatment, that you try to get a one a day pill that you can give to, you know, patients.

RASHBAUM: These make it very simple -- once a day, with or without food, minimal side effects. It lessens the chance of resistance.

FEIG: And less resistance to medicine means patients can live longer, better lives.

Christy Feig, CNN, Bangkok.

(END VIDEOTAPE)

WHITFIELD: Well, here are some stories making news across America this Thursday.

Dramatic pictures of devastation in southern Pennsylvania. More than a dozen people were sent to the hospital after high winds tore through this neighborhood in Campbelltown. One person remains in critical condition. At least 30 homes were destroyed or heavily damages. Coming up later in the hour, we'll have a live report from one of the shelters housing those who have lost their homes.

A massive construction project is being proposed for downtown Los Angeles. The $1 billion development would include a hotel, a shopping area, a concert theater and a large condominium complex. Developers say the project would be the biggest ever in L.A. and could bring 20,000 jobs to the area.

On its third try, NASA successfully launched the Aura satellite into space just a few minutes ago. The Aura is the most sophisticated ever sent to study the Earth's atmosphere. The equipment will give NASA its most accurate measurement of the ozone layer. Technical problems caused the launch to be delayed both yesterday and Tuesday.

Still much more on DAYBREAK.

Straight ahead, John Kerry makes an appearance where President Bush refuses to go. We'll get an update from the campaign trail.

Two Michigan families get tragic news about their teenaged sons. We'll tell you how a mistake makes an awful story even worse.

And two casinos take a big gamble on a merger. We'll tell you who Wall Street is betting on.

And the best of the small screen -- the Emmy nominations are today.

This is DAYBREAK for Thursday, July 15.

(COMMERCIAL BREAK)

WHITFIELD: Your news, money, weather and sports.

It is now about 17 minutes after the hour and here's what's all new this morning.

The judge in the Scott Peterson trial will hear a defense motion on a mistrial. Defense attorneys claim the lead detective in the case lied on the stand during earlier testimony.

Oil prices are back up. The price per barrel rose to a six week high of more than $41. Concerns over security and supply led to surges in the prices.

In money, a little iPod has had a big effect on profits. Apple Computer says profits have tripled thanks to demand for the iPod and their new Macs.

In culture, Subway is bringing back that Jared guy. It's part of their new campaign to fight childhood obesity. Jared will appear in commercials with three kids who lost weight while eating at Subway. And in sports, the diesel has left L.A. Lakers center Shaquille O'Neal was officially traded to the Miami Heat for three players and a draft pick. We'll have more on Shaq, Kobe and the Lakers coming up a little bit later.

And guess what, Chad?

MYERS: Hey, what?

WHITFIELD: A little clarification.

MYERS: Go ahead.

WHITFIELD: So Lakers are offering Kobe $136 million over seven years to say.

MYERS: Seven years.

WHITFIELD: Or the Clippers say $106 million over six years.

MYERS: Does it matter?

WHITFIELD: Well, I guess...

MYERS: At that point...

WHITFIELD: ... it does in terms of, you know, if he wants to go with a team that's kind of starting to shape itself or does he want to stick with the team that he knows, even though they've lost, you know, a big player?

MYERS: Right.

WHITFIELD: And so many are saying they really are not a strong team anymore.

MYERS: Sure.

WHITFIELD: Go figure.

MYERS: But it's still winning the lottery one way or the other.

WHITFIELD: Yes, it's over $100 million.

MYERS: Hey, good morning, everybody.

WHITFIELD: OK.

(WEATHER REPORT)

WHITFIELD: Well, time for a little business buzz. Viva Las Vegas. Harrah's hopes to hit the jackpot with a billion dollar deal.

Carrie Lee reports.

She's at the Nasdaq market site in Times Square -- hello, Carrie. CARRIE LEE, CNN CORRESPONDENT: Hi, Fredricka.

A $5.2 billion deal -- that's the price tag for Harrah's purchase of Caesars, according to published reports. We're expecting the official announcement to come today. Harrah's is expected to buy its rival and this would create the world's largest casino operator, together with $8.8 billion in annual sales and operating more than 50 casinos, with a sizable presence in nearly every major legalized U.S. gambling market.

Caesars is known for its glitzy Caesar Palace, Bali's, other -- some other brands. Harrah's is better known as a technology and marketing savvy company. So it could very well be a good pairing. And, also, this comes following the MGM-Mirage deal to acquire Mandalay Resort Group for $4.8 billion. So regulators are going to have to consider that there are now likely to be two very big players in this space. Most people on Wall Street, though, expect the deals to pass without a problem. So, we will see.

But that is the latest in the gambling space.

Taking a look at stocks today, futures looking pretty flat for today's session. One name that could do well, though, Apple Computer, reporting profits last night. Profits more than tripled from the year ago period on strong sales for its computers and staggering demand for its iPod portable music players. The stock was gaining about 7 percent in the after hours session. We'll see what it does today.

And that is the latest business news.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

WHITFIELD: Well, time for our DAYBREAK "Eye Opener."

The original Heisman trophy is for sale.

MYERS: Whoa!

WHITFIELD: But not just to anyone. So forget putting in a bid, Chad.

The Florida family that owns the original has handpicked 150 sports and businesspeople who will be allowed to bid on the prize. It's expected to fetch well over $1 million. The trophy for college football's best player was first awarded to Jay Berwanger back in 1935.

Well, home sickness or alien abduction -- they're on the lookout for a missing cow in Boring, Oregon. The animal went missing from its pen just one day after its owner brought it home. There were no signs of escape, so the owner said it's possible that the 700-pound animal jumped the fence. I guess they'll keep looking until the cows come home.

MYERS: (UNINTELLIGIBLE).

WHITFIELD: Now for another cow story, farm equipment giant John Deere has developed a video game for virtual farmers. In the game, you can grow crops and, yes, even milk cows. But watch out -- players also have to deal with fluctuating market prices and the occasional plague.

MYERS: Oh, of course.

WHITFIELD: Oh, god. Go figure.

And in southwestern Pennsylvania, there's still a lot of activity.

MYERS: Yes, exactly. Central Pennsylvania, as well. You probably have never heard of this town, Campbelltown, Pennsylvania. They got really hit hard yesterday.

WHITFIELD: (UNINTELLIGIBLE).

MYERS: I'm sure you've heard of a place called Hershey, Pennsylvania. Obviously, the Hershey bar, right? Only about five miles away from this. Folks came back from this town from yesterday from going to work to Campbelltown, Pennsylvania and all of a sudden they saw nothing. Basically their house -- some of them were gone.

WHITFIELD: That's a remarkable sight.

MYERS: We have an affiliate here, Kevin Henry from WHTM there, is basically outside the shelter, I think, it looks like, or somewhere there. It looks like you're in a pretty good shape this morning. How are the rest of the folks there?

KEVIN HENRY, WHTM CORRESPONDENT: Well, folks are trying to regroup this morning, Chad, that's for certain. We're not even allowed close to it right now, it is that bad. It's been described as a war zone in the Country Squire neighborhood.

The National Weather Service is actually going to be here around 9:00 a.m. to determine if this, indeed, was a tornado.

Let's take a look at some pictures, some aerial shots that we shot yesterday right after this storm touched down. It hit around mid-afternoon, like I said, in the Country Squire development. That's in South Londonderry Township, Lebanon County, P.A.

There are 80 homes in there. We're told anywhere from 30 to 50 homes could be destroyed. Witnesses said they saw a funnel cloud and they heard that sound of a train blowing through. In just a matter of minutes, a few dozen homes, as I said, they were gone.

A number of folks were allowed back in their homes last night after inspectors checked them out and deemed them structurally sound. Unfortunately for the rest, all they can do is sit and look and see what is left of their homes, pick up the pieces, try to salvage what's inside. Now, there is a Red Cross shelter right here, the Campbelltown Fire Department. They set it up right after this storm touched down. A hundred and fifty people converged on this to see what they should do. After a kind of a system in which they gave their addresses and they gave their keys, they waited in there. Then the inspectors came back and said, OK, who lives at so and so and such and such? And they gave them the keys back and said, OK, your home is OK. You're allowed back in.

We should also say, Chad, this storm injured 16 people, one of them critically.

MYERS: Yes.

HENRY: And emergency crews we've been talking to say, you know, only 16? A lot of people were at work. They say considering this devastation and all of this damage, there should have been a whole lot more than that. So a lot of folks are lucky.

But they do say that this damage, don't tell them it wasn't a tornado. Our weather guys, in fact, say what they've seen, they think it's a tornado. But, again, the National Weather Service is going to check in this morning to check it out to be sure -- Chad, back to you.

MYERS: Do they have sirens? Were the sirens going off?

HENRY: The sirens were going. There was all kinds of activity going on here yesterday. There was nothing -- there's nothing going on -- all is relatively quiet, just another beautiful morning in south central P.A. But yesterday, it was just bedlam. And you know on live TV, we have live trucks where you have to put the mast up. We couldn't put the mast up because of the lightning.

MYERS: Yes.

HENRY: And the wind and all of that.

MYERS: Sure.

HENRY: So it was, to say the least, a crazy day here in Pennsylvania.

MYERS: I guess so.

Kevin, thank you very much.

I've -- I worked in Oklahoma City long enough to know that the video that I saw from that aerial was absolutely tornado damage. There's just no way around that. But obviously they'll be looking at that at nine o'clock. The Weather Service will be out there doing that assessment.

DAYBREAK will be right back after this.

(COMMERCIAL BREAK)

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