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Intense Fighting in Najaf; Kerry Focuses on Rising Health Care Costs

Aired August 19, 2004 - 10:00   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.


DARYN KAGAN, CNN ANCHOR: Good morning from Time Warner Center in New York City. I'm Daryn Kagan.
We'll start by taking a look at the headlines now in the news, beginning with intense fighting raging in Najaf. As Iraq's interim government makes one more demand of radical Muslim, cleric Muqtada al- Sadr, Iraq says Muqtada al-Sadr must publicly or personally say he is disarming or will stand down. Yesterday al-Sadr agreed by letter to disband his army, leave the Imam Ali Mosque and move into mainstream politics.

Democratic presidential hopeful, John Kerry focuses on rising health care costs and campaign at the International Association of Firefighters convention in Boston. A live picture there for you. The Kerry campaign commissioned a study showing a connection between health care costs and job losses. The Democrat blames both on President Bush.

Getting under way right now in Washington, the Senate Judiciary Committee is looking at border security and law enforcement, at another hearing on the 9/11 Commission Report. In the hot seat today, Homeland Security Undersecretary Asa Hutchinson.

And all eyes on the Internet search engine Google, as the much- anticipated IPO makes its market debut at 85 on the Nasdaq. Who's feeling lucky? We have a live report coming up in 22 minutes.

We're keeping you informed. CNN is the most trusted name in news.

Live this hour, waging the war of ideas in the global war on terror. That is what National Security Adviser Condoleezza Rice will be talking about. She's giving a speech to the U.S. Institute for Peace.

Iraqi officials want to hear directly from Muqtada al-Sadr today, and then want the rebel cleric to back up his words with actions.

Our John Vause is in Baghdad. He has the latest developments in this ongoing standoff.

John, hello.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Daryn. Heavy fighting under way -- excuse me, right now in Najaf between U.S. forces, Iraqi forces, and the Mehdi militia around the area of the Imam Ali Mosque. This follows an ultimatum, which was delivered earlier today from the minister of state, demanding that Muqtada al-Sadr publicly announce, come out and actually say it. Say it that he was ready to leave the Imam Ali Mosque and publicly say that he would dissolve his Mehdi militia.

It appears that Muqtada al-Sadr; at least his senior aides say that he was not ready to do that. He would not accept that ultimatum delivered by the interim Iraqi government. Because that government, according to Muqtada al-Sadr, does not represent the people.

Right now that fighting continues. We know that U.S. tanks and troops came within 400 yards of the Imam Ali Mosque. Inside, CNN producer Kianne Sadeq reported earlier today that the Mehdi militia appeared to be in good spirits. They were chanting "Muqtada. Muqtada." They appeared to be ready for a fight. We've also heard from the defense minister that the Iraqi troops have been prepared and are ready for an assault on the mosque. We do not know if that has happened. We have no word yet if, in fact, the mosque has been -- if that offensive on the mosque is under way.

But we were told yesterday by the minister of defense that the troops were ready for that. And any assault on the mosque would be led by Iraqi troops with U.S. forces offering air support as well as ground support, blocking off roads around the Imam Ali Mosque. That appears that the U.S. forces have, in fact, done that right now -- Daryn.

KAGAN: Meanwhile, doesn't the whereabouts of Muqtada al-Sadr seem to be in question at this time?

VAUSE: Absolutely. Kianne Sadeq, our producer who went to the mosque, she spoke with the senior aides of al-Sadr. They are insisting that Muqtada al-Sadr is not inside the mosque. Now, we have no way to verify that. But that would explain why Muqtada al-Sadr did not meet with a peace delegation, which went there on Tuesday, to try and broker a cease-fire in all of this. They only met with his senior aides. At the time they said that Muqtada al-Sadr would not meet with them face-to-face, because the situation was too dangerous. Now his aides are saying that Muqtada al-Sadr is not inside the mosque -- Daryn.

KAGAN: John Vause in Baghdad. We will be back to you throughout the morning for the latest on that standoff.

Also this news from Iraq. An armed group is threatening to kill a hostage, unless U.S. forces pull out of the city of Najaf within 48 hours. Micah Garen was kidnapped Friday in Nasiriyah along with his Iraqi translator. Garen is a French journalist with a U.S. passport. He was working on a documentary about archaeological sites and antiquities endangered by the fighting.

A fight between detainees at Abu Ghraib prison erupted into an all-out brawl involving 200 people. U.S. military police shot and killed two detainees and wounded five others. Military officials say that lethal force was used because one detainee was at risk of being killed by other inmates. The Abu Ghraib brawl comes as the U.S. Army prepares to release its report on the prison abuse scandal.

Our Barbara Starr is at the Pentagon with that story.

Barbara, good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you Daryn. Well, the Army report, in part finds, that top leaders in Baghdad last year did not provide enough resources for the military to run those jails in Iraq. And that is part of the reason, they say, that the abuse took place.

(BEGIN VIDEOTAPE)

STARR (voice-over): The Army investigation of intelligence and interrogation practices at Abu Ghraib prison is expected to recommend up to two-dozen personnel face disciplinary or criminal proceedings, according to defense officials. This would expand the number of people alleged to be involved in this scandal, far beyond the seven soldiers currently charged. All members of a police unit.

The report will detail findings of alleged wrongdoing by members of the 205-Military Intelligence Brigade, contractors and other government personnel. It will recommend actions ranging from potential administrative discipline all the way to a criminal investigation, officials say. Barring last-minute evidence, investigators have concluded there were no orders from higher-ups to abuse prisoners in order to get information. The Army's long-standing conclusion is the abuse was the work of out-of-control soldiers, with local commanders not paying attention.

LT. GEN. PAUL MIKOLASHEK, INSPECTOR GENERAL, U.S. ARMY: We looked at this through the eyes of the soldiers. And what we found, as I mentioned to, was not a good picture.

STARR: The brigade's commander Colonel Thomas Pappas, will likely be criticized for failing to oversee his troops, but is not found to be directly involved in the abuse. No one higher up than the colonel is likely to be held responsible. Top commanders in Baghdad will be cited for not adequately overseeing the prison system.

An attorney for one of the soldiers already charged says the Intelligence Brigade was giving the orders.

GUY WOMACK, CHARLES GARNER'S ATTORNEY: This was an interrogation center. He was being directed by military intelligence officers and others in the intel community.

(END VIDEOTAPE)

STARR: Congress, Daryn, is now likely to get its first look at this report next week, and is going to have many questions about yet another Army report investigating this prison abuse scandal -- Daryn.

KAGAN: Barbara, my question for you has to do with what is taking place in Najaf today. And that is, as the troops move in on what is happening at the Imam Ali Mosque, making sure the division between Iraqi troops and U.S. troops. How is that being set up?

STARR: Well, no one's -- it's not terribly clear at the moment the situation that's evolving in Najaf. Today we've talked to senior officials here; they describe it this morning here at the Pentagon as "very fluid." No one is yet ready to say tactically on the ground around the mosque, around the shrine, that this is the big expected military offensive. There is expected to be a lot of skirmishes back and forth. U.S. troops are certainly, as CNN has reported earlier today, a perimeter ring of security. The plan is that they will not enter the holy shrine unless, of course, they are attacked from that area. And then they would, of course, defend themselves -- Daryn.

KAGAN: Barbara Starr at the Pentagon. Thank you for that.

Now, I want to go live to Baghdad. The Prime Minister Ayad Allawi holding a news conference on the Najaf situation. Let's listen in.

AYAD ALLAWI, IRAQI INTERIM PRIME MINISTER (through translator): It has proven once again that the Iraqis are capable of carrying the responsibility in order to rise with the country, and the people by laying the foundation for that edifice to freedom and democracy. It is also to silence the fruitless talk of those who have wagered on the failure of the conference in obstructing the basis of civil society, with the hope of the return of their failed totalitarian platform.

Their wager was disproved with the rising of all segments of civil society above the instances of racial, religious and sectarian conflicts, which the enemies of the people mistakenly anticipated in the disillusionment through their failed attempts at inciting them seditiously. Thus, a new hope has been born, manifested in the elected National Council, announcing the good news of freedom with the determination to establish democracy and looking forward to established peace and security, as well as achieving the rule of law for a prosperous society.

The hundred members of the National Council, who were elected in a fair and transparent way and without discrimination, represent the popular will and will undertake the overseeing of government business, while they extend wise advice to it and look after the economic development. And participate in strengthening security and stability, in addition to the other duties delegated to them for the preparation of holding general elections, at the appointed time in January of next year. Thus, it would have laid down the path for the rule of the people for itself, while bringing about national independence.

As you know, our beloved homeland has lived through a number of difficult stages, which have had positive effects in some ways. For the opposition rose early to hear the concerns of the people in defending its rights, which were reserved by the tyrant and his aides. While suffering through all the sacrifices that that are represented by the mass graves, the horrific and foul campaigns, the Halabja massacre and the savage operation against the heroic Shaban uprising. Where tens of thousands of martyrs gave their lives for freedom, while in hundreds of prisons and detention centers, which held hundreds of thousands of fighters, our people waged war to be free from the yolk of the dictatorship, in order to realize Iraq's dream through freedom and democracy for the respect of human rights, and lifting of the unfair treatment of women, along with the caring for the youth and accepting the other point of view.

Then came the war, sweeping aside the defunct regime for good. We in the government thank the coalition forces to help us overcome the regime of dictatorship, oppression and then terrorism. Following that was a phase for the transfer of sovereignty from the Coalition Authorities to an Iraqi independent sovereign government, that freely enjoys making decisions necessary to improve the political, social and economic state of the country. Thus, it has become essential that the coalition forces become multi-national forces in accordance with the resolution of the U.N. organization and its Security Council.

Ladies and gentlemen, these were positive and necessary steps, in our view, in order to strengthen national governance, to achieve independence, and to prepare for the general elections. Which will be sponsored and supervised by the elected National Council.

While the government is proud to carry its responsibility for the country's good, it is working faithfully and hard to improve the general situation in the country. One example from the economic arena is that it is focusing its efforts to get rid of the vestiges of the past, to rebuilding infrastructure, provide job opportunities for the unemployed, and to improve living status for government employees, as well as the pensioners while dealing with foreign debts and minimizing them.

The government is also pursuing the preparation of the 2005 budget, drawing up suitable plans to increase oil production capacity, deal with obstacles and problems of the cultural sector, while at the same time working on pursuing and continuing the reconstruction. In addition to strengthening the role of the private sector, while performing the institutions. And giving special attention to tourism, as it is one of the major contributors to economic growth.

In the domain of security, there is temporary confusion in some Iraqi cities, like Hilla. And there is lack of stability in the Holy City of Najaf and Kufa, due to the presence of lawless, armed militia, several misguided adherents of the former regime and terrorists coming from abroad, working to destroy our country and its infrastructure. And foil its nascent experience in exercising democracy and picking the fruit of freedom. Some of them were shown in custody in videotapes that have been shown by some satellite TV channels, and other media outlets.

Also, the government has taken political and security measures to restore stability to the country. Especially to the holy city of Najaf, where there are still armed militias fortifying themselves inside the holy shrine. Thus desecrating its sanctity and becoming a threat to the safety and security of the city and its inhabitants. They exploit the patience and wisdom of the government in dealing with issues, and its preference of a peaceful solution to a military settlement. They have gone too far in their provocation and aggression.

As you know, we have taken shrewd steps, based on wisdom and patience, in dealing with issues. We have reopened the Houssan newspaper, in order to provide them with the opportunity to engage in political work. And we then issued an amnesty. I subsequently went to the Holy City of Najaf and personally met with its religious and tribal leaders. And with its notables and political activists, in order to encourage the armed ones to desist from doing ill and to return to the fold of the civil society again.

I later met at my private office with a delegation representing Mr. Muqtada al-Sadr. In the wake of that, the national security adviser was sent to the holy city, where he stayed for three days to no avail. During that time, we asked the multi-national forces and our own forces not to get close to the holy shrine, so that food and medical needs could reach everyone without exception. Later we received a delegation representing the tribes of Central Euphrates for the mediation of the same issue.

In the meantime, we're issuing declarations through the offices of the prime minister, national security and the Ministry of the Interior calling for peace, and inviting them to disarm and make use of the general amnesty. As we confront their constant delay and inclination to do evil, we will categorically not allow armed militias.

This is the final call to them to disarm. They cage the holy shrine, engage in political work, and to consider the interest of the homeland above the factional and personal ones. And to work together to improve the conditions of the country, and participate in unifying the people to build a pluralistic democracy, and accept the opinion of the other instant of warring.

We have heard through the media that Mr. Muqtada al-Sadr is prepared to comply with the request of the government and National Conference. We will come such an announcement confirm our readiness to accept this initiative of his. Provided that they crystallize it into a tangible and committed position, through a documented declaration from him personally.

May God help all succeed in doing what is good for our people and homeland. Now I'm ready to take questions.

UNIDENTIFIED MALE (through translator): What are the measures that you are taking to protecting the institutions, and oil pipelines?

ALLAWI (through translator): Unfortunately, there are some sides that have attacked the oil infrastructure. Some of them were in the south of Basra, and in the Halfia (ph) oil fields. Of course, the losses of Iraq was more than $160 million. These forces say that they believe in Iraq, claim that. But in fact, this is proof that they want to hurt the Iraqi people. The Ministry of Oil, the Ministry of Defense, with the multi-national forces have put a plan to protect the oil infrastructure. And hopefully this plan is going to be executed right away. And it will be very difficult for them to attack them. RAHIM AL RABAWI, "NAFEZ" NEWSPAPER (through translator): Rahim al Rabawi (ph), "Nafez" newspaper. Mr. Prime Minister, concerning Najaf. Sir, how can you be sure that the -- these groups have their weapons, since there is no accounting to those weapons?

ALLAWI (through translator): There are some conditions that the National Conference has set forth, and the government has done the same.

There are no militias in Iraq. The militias should give all their weapons to the National Guard and the Iraqi security forces. We have not heard directly from al-Sadr himself. We have heard from elements and aides around him, but we did not hear from him directly. When we hear from him, and that he is committed to execute these conditions, we are going to activate the mechanisms with the Iraqi police, and the other military government bodies. And we will give him protection and his group.

KAGAN: We've been listening in to a news conference from Baghdad. That is Prime Minister Ayad Allawi, talking about the situation in Najaf, basically saying time is up for Muqtada al-Sadr. The radical Shiite cleric who has been holed up in that city and keeping basically hostage the Imam Ali Mosque. That it is time to give up and it is time for his Mehdi militia also to give up their arms.

Some questions there about how they'll be able to know if indeed that Muqtada al-Sadr is good to his word. And Ayad Allawi seemed to say that there will be ways to check on that.

Much more ahead, not just from Najaf, but from Baghdad as well with out John Vause.

Meanwhile, let's get some other political news in here from here in the states.

John Kerry calling on the White House to condemn criticism of his Vietnam War record. Kerry's comment follows a report in today's "Washington Post," the story raising more questions about a Vietnam War incident involving Kerry and one of his critics. Larry Thurlow commanded a swift boat alongside Kerry in March of 1969, and is now a member of Swift Boat Veterans for Truth. A group that has attacked Kerry's war record.

In an affidavit last month, Thurlow swore that Kerry wasn't under fire when he pulled an officer out of the water. Thurlow describes Kerry's Bronze Star citation as totally fabricated. But the "Post," citing Thurlow's military records reports several references to all boats of the flotilla coming under fire.

President Bush's plan to redeploy U.S. troops from bases in Asia and Europe is bringing out some critics and supporters.

Our Elaine Quijano is at the White House with that story.

Elaine, good morning. ELAINE QUIJANO, CNN CORRESPONDENT: Good morning, Daryn. White House officials have been making the rounds on TV, both yesterday and today about the president's redeployment plan. Now, that plan would mean some 70,000 U.S. troops, most of them stationed in Europe and Asia, would be redeployed and brought here to be stationed inside the United States.

Now at this hour, National Security Adviser Condoleezza Rice is speaking here in Washington at the U.S. Institute of Peace, where aides say she is focusing mainly on the importance of outreach to the Muslim world. But of course, the White House believes that is just one component in fighting terrorism. Another is this redeployment plan, which officials say is necessary to adjust from fighting a Cold War to fighting the war on terror.

Now, Republican Senator John McCain said he is worried about the message that sends to North Korea. Which he believes could see U.S. troop repositioning as a sign of weakness. And yesterday on CNN, Dr. Rice responded to that criticism.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: In the 50 years since the end of the Korean War, a lot has changed. The South Korean forces are stronger. Our forces are more capable technologically. Our air and sea power contribute more to the deterrent. This is a very powerful deterrent against Kim Jung Il. And he would make a terrible mistake in reading anything into it.

(END VIDEO CLIP)

QUIJANO: Now, it was Monday that President Bush announced his redeployment plan at the Veterans of Foreign Wars convention in Cincinnati, Ohio. There the president made the case that with the repositioning, the country would be better protected and U.S. forces more agile in responding to terrorist threats. But Democratic opponent, Senator John Kerry, speaking to the same group yesterday disputed that.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The president's vaguely stated plan does not strengthen our hand in the war on terror. It in no way relieves the strain on our overextended military personnel. It doesn't even begin until 2006 and it takes 10 years to achieve.

And this hastily announced plan raises more doubts about our intentions and our commitment than it provides real answers.

(END VIDEO CLIP)

QUIJANO: Now, Senator Kerry and his supporters argue that this represents a unilateral move. But administration officials insist that allies have been consulted all along the way. And in the words of one administration official, quote, "This is something we're doing with allies, not to them" -- Daryn.

KAGAN: Elaine Quijano at the White House, thank you for that.

Still ahead, we're going to check in on Florida. There is a new crisis in dealing with Hurricane Charley, has nothing to do with the actual storm itself. But there are some big problems in Florida. That story is just ahead.

(COMMERCIAL BREAK)

KAGAN: There are new health concerns in the wake of Hurricane Charley. Elderly Florida residents face the threat of heatstroke and dehydration in areas where power remains down and water supplies are limited. Adding to the misery, an exploding mosquito population, leaving residents vulnerable to encephalitis and West Nile virus. Folks can't even cool off with a quick dip in the ocean. Health officials warn beach areas could be contaminated by failed septic tanks and sewer systems.

Google hits the street. Find out what price the Internet stock is trading now, opening at $85 a share today. Mary Snow joins us after the break.

(COMMERCIAL BREAK)

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Aired August 19, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning from Time Warner Center in New York City. I'm Daryn Kagan.
We'll start by taking a look at the headlines now in the news, beginning with intense fighting raging in Najaf. As Iraq's interim government makes one more demand of radical Muslim, cleric Muqtada al- Sadr, Iraq says Muqtada al-Sadr must publicly or personally say he is disarming or will stand down. Yesterday al-Sadr agreed by letter to disband his army, leave the Imam Ali Mosque and move into mainstream politics.

Democratic presidential hopeful, John Kerry focuses on rising health care costs and campaign at the International Association of Firefighters convention in Boston. A live picture there for you. The Kerry campaign commissioned a study showing a connection between health care costs and job losses. The Democrat blames both on President Bush.

Getting under way right now in Washington, the Senate Judiciary Committee is looking at border security and law enforcement, at another hearing on the 9/11 Commission Report. In the hot seat today, Homeland Security Undersecretary Asa Hutchinson.

And all eyes on the Internet search engine Google, as the much- anticipated IPO makes its market debut at 85 on the Nasdaq. Who's feeling lucky? We have a live report coming up in 22 minutes.

We're keeping you informed. CNN is the most trusted name in news.

Live this hour, waging the war of ideas in the global war on terror. That is what National Security Adviser Condoleezza Rice will be talking about. She's giving a speech to the U.S. Institute for Peace.

Iraqi officials want to hear directly from Muqtada al-Sadr today, and then want the rebel cleric to back up his words with actions.

Our John Vause is in Baghdad. He has the latest developments in this ongoing standoff.

John, hello.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Daryn. Heavy fighting under way -- excuse me, right now in Najaf between U.S. forces, Iraqi forces, and the Mehdi militia around the area of the Imam Ali Mosque. This follows an ultimatum, which was delivered earlier today from the minister of state, demanding that Muqtada al-Sadr publicly announce, come out and actually say it. Say it that he was ready to leave the Imam Ali Mosque and publicly say that he would dissolve his Mehdi militia.

It appears that Muqtada al-Sadr; at least his senior aides say that he was not ready to do that. He would not accept that ultimatum delivered by the interim Iraqi government. Because that government, according to Muqtada al-Sadr, does not represent the people.

Right now that fighting continues. We know that U.S. tanks and troops came within 400 yards of the Imam Ali Mosque. Inside, CNN producer Kianne Sadeq reported earlier today that the Mehdi militia appeared to be in good spirits. They were chanting "Muqtada. Muqtada." They appeared to be ready for a fight. We've also heard from the defense minister that the Iraqi troops have been prepared and are ready for an assault on the mosque. We do not know if that has happened. We have no word yet if, in fact, the mosque has been -- if that offensive on the mosque is under way.

But we were told yesterday by the minister of defense that the troops were ready for that. And any assault on the mosque would be led by Iraqi troops with U.S. forces offering air support as well as ground support, blocking off roads around the Imam Ali Mosque. That appears that the U.S. forces have, in fact, done that right now -- Daryn.

KAGAN: Meanwhile, doesn't the whereabouts of Muqtada al-Sadr seem to be in question at this time?

VAUSE: Absolutely. Kianne Sadeq, our producer who went to the mosque, she spoke with the senior aides of al-Sadr. They are insisting that Muqtada al-Sadr is not inside the mosque. Now, we have no way to verify that. But that would explain why Muqtada al-Sadr did not meet with a peace delegation, which went there on Tuesday, to try and broker a cease-fire in all of this. They only met with his senior aides. At the time they said that Muqtada al-Sadr would not meet with them face-to-face, because the situation was too dangerous. Now his aides are saying that Muqtada al-Sadr is not inside the mosque -- Daryn.

KAGAN: John Vause in Baghdad. We will be back to you throughout the morning for the latest on that standoff.

Also this news from Iraq. An armed group is threatening to kill a hostage, unless U.S. forces pull out of the city of Najaf within 48 hours. Micah Garen was kidnapped Friday in Nasiriyah along with his Iraqi translator. Garen is a French journalist with a U.S. passport. He was working on a documentary about archaeological sites and antiquities endangered by the fighting.

A fight between detainees at Abu Ghraib prison erupted into an all-out brawl involving 200 people. U.S. military police shot and killed two detainees and wounded five others. Military officials say that lethal force was used because one detainee was at risk of being killed by other inmates. The Abu Ghraib brawl comes as the U.S. Army prepares to release its report on the prison abuse scandal.

Our Barbara Starr is at the Pentagon with that story.

Barbara, good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you Daryn. Well, the Army report, in part finds, that top leaders in Baghdad last year did not provide enough resources for the military to run those jails in Iraq. And that is part of the reason, they say, that the abuse took place.

(BEGIN VIDEOTAPE)

STARR (voice-over): The Army investigation of intelligence and interrogation practices at Abu Ghraib prison is expected to recommend up to two-dozen personnel face disciplinary or criminal proceedings, according to defense officials. This would expand the number of people alleged to be involved in this scandal, far beyond the seven soldiers currently charged. All members of a police unit.

The report will detail findings of alleged wrongdoing by members of the 205-Military Intelligence Brigade, contractors and other government personnel. It will recommend actions ranging from potential administrative discipline all the way to a criminal investigation, officials say. Barring last-minute evidence, investigators have concluded there were no orders from higher-ups to abuse prisoners in order to get information. The Army's long-standing conclusion is the abuse was the work of out-of-control soldiers, with local commanders not paying attention.

LT. GEN. PAUL MIKOLASHEK, INSPECTOR GENERAL, U.S. ARMY: We looked at this through the eyes of the soldiers. And what we found, as I mentioned to, was not a good picture.

STARR: The brigade's commander Colonel Thomas Pappas, will likely be criticized for failing to oversee his troops, but is not found to be directly involved in the abuse. No one higher up than the colonel is likely to be held responsible. Top commanders in Baghdad will be cited for not adequately overseeing the prison system.

An attorney for one of the soldiers already charged says the Intelligence Brigade was giving the orders.

GUY WOMACK, CHARLES GARNER'S ATTORNEY: This was an interrogation center. He was being directed by military intelligence officers and others in the intel community.

(END VIDEOTAPE)

STARR: Congress, Daryn, is now likely to get its first look at this report next week, and is going to have many questions about yet another Army report investigating this prison abuse scandal -- Daryn.

KAGAN: Barbara, my question for you has to do with what is taking place in Najaf today. And that is, as the troops move in on what is happening at the Imam Ali Mosque, making sure the division between Iraqi troops and U.S. troops. How is that being set up?

STARR: Well, no one's -- it's not terribly clear at the moment the situation that's evolving in Najaf. Today we've talked to senior officials here; they describe it this morning here at the Pentagon as "very fluid." No one is yet ready to say tactically on the ground around the mosque, around the shrine, that this is the big expected military offensive. There is expected to be a lot of skirmishes back and forth. U.S. troops are certainly, as CNN has reported earlier today, a perimeter ring of security. The plan is that they will not enter the holy shrine unless, of course, they are attacked from that area. And then they would, of course, defend themselves -- Daryn.

KAGAN: Barbara Starr at the Pentagon. Thank you for that.

Now, I want to go live to Baghdad. The Prime Minister Ayad Allawi holding a news conference on the Najaf situation. Let's listen in.

AYAD ALLAWI, IRAQI INTERIM PRIME MINISTER (through translator): It has proven once again that the Iraqis are capable of carrying the responsibility in order to rise with the country, and the people by laying the foundation for that edifice to freedom and democracy. It is also to silence the fruitless talk of those who have wagered on the failure of the conference in obstructing the basis of civil society, with the hope of the return of their failed totalitarian platform.

Their wager was disproved with the rising of all segments of civil society above the instances of racial, religious and sectarian conflicts, which the enemies of the people mistakenly anticipated in the disillusionment through their failed attempts at inciting them seditiously. Thus, a new hope has been born, manifested in the elected National Council, announcing the good news of freedom with the determination to establish democracy and looking forward to established peace and security, as well as achieving the rule of law for a prosperous society.

The hundred members of the National Council, who were elected in a fair and transparent way and without discrimination, represent the popular will and will undertake the overseeing of government business, while they extend wise advice to it and look after the economic development. And participate in strengthening security and stability, in addition to the other duties delegated to them for the preparation of holding general elections, at the appointed time in January of next year. Thus, it would have laid down the path for the rule of the people for itself, while bringing about national independence.

As you know, our beloved homeland has lived through a number of difficult stages, which have had positive effects in some ways. For the opposition rose early to hear the concerns of the people in defending its rights, which were reserved by the tyrant and his aides. While suffering through all the sacrifices that that are represented by the mass graves, the horrific and foul campaigns, the Halabja massacre and the savage operation against the heroic Shaban uprising. Where tens of thousands of martyrs gave their lives for freedom, while in hundreds of prisons and detention centers, which held hundreds of thousands of fighters, our people waged war to be free from the yolk of the dictatorship, in order to realize Iraq's dream through freedom and democracy for the respect of human rights, and lifting of the unfair treatment of women, along with the caring for the youth and accepting the other point of view.

Then came the war, sweeping aside the defunct regime for good. We in the government thank the coalition forces to help us overcome the regime of dictatorship, oppression and then terrorism. Following that was a phase for the transfer of sovereignty from the Coalition Authorities to an Iraqi independent sovereign government, that freely enjoys making decisions necessary to improve the political, social and economic state of the country. Thus, it has become essential that the coalition forces become multi-national forces in accordance with the resolution of the U.N. organization and its Security Council.

Ladies and gentlemen, these were positive and necessary steps, in our view, in order to strengthen national governance, to achieve independence, and to prepare for the general elections. Which will be sponsored and supervised by the elected National Council.

While the government is proud to carry its responsibility for the country's good, it is working faithfully and hard to improve the general situation in the country. One example from the economic arena is that it is focusing its efforts to get rid of the vestiges of the past, to rebuilding infrastructure, provide job opportunities for the unemployed, and to improve living status for government employees, as well as the pensioners while dealing with foreign debts and minimizing them.

The government is also pursuing the preparation of the 2005 budget, drawing up suitable plans to increase oil production capacity, deal with obstacles and problems of the cultural sector, while at the same time working on pursuing and continuing the reconstruction. In addition to strengthening the role of the private sector, while performing the institutions. And giving special attention to tourism, as it is one of the major contributors to economic growth.

In the domain of security, there is temporary confusion in some Iraqi cities, like Hilla. And there is lack of stability in the Holy City of Najaf and Kufa, due to the presence of lawless, armed militia, several misguided adherents of the former regime and terrorists coming from abroad, working to destroy our country and its infrastructure. And foil its nascent experience in exercising democracy and picking the fruit of freedom. Some of them were shown in custody in videotapes that have been shown by some satellite TV channels, and other media outlets.

Also, the government has taken political and security measures to restore stability to the country. Especially to the holy city of Najaf, where there are still armed militias fortifying themselves inside the holy shrine. Thus desecrating its sanctity and becoming a threat to the safety and security of the city and its inhabitants. They exploit the patience and wisdom of the government in dealing with issues, and its preference of a peaceful solution to a military settlement. They have gone too far in their provocation and aggression.

As you know, we have taken shrewd steps, based on wisdom and patience, in dealing with issues. We have reopened the Houssan newspaper, in order to provide them with the opportunity to engage in political work. And we then issued an amnesty. I subsequently went to the Holy City of Najaf and personally met with its religious and tribal leaders. And with its notables and political activists, in order to encourage the armed ones to desist from doing ill and to return to the fold of the civil society again.

I later met at my private office with a delegation representing Mr. Muqtada al-Sadr. In the wake of that, the national security adviser was sent to the holy city, where he stayed for three days to no avail. During that time, we asked the multi-national forces and our own forces not to get close to the holy shrine, so that food and medical needs could reach everyone without exception. Later we received a delegation representing the tribes of Central Euphrates for the mediation of the same issue.

In the meantime, we're issuing declarations through the offices of the prime minister, national security and the Ministry of the Interior calling for peace, and inviting them to disarm and make use of the general amnesty. As we confront their constant delay and inclination to do evil, we will categorically not allow armed militias.

This is the final call to them to disarm. They cage the holy shrine, engage in political work, and to consider the interest of the homeland above the factional and personal ones. And to work together to improve the conditions of the country, and participate in unifying the people to build a pluralistic democracy, and accept the opinion of the other instant of warring.

We have heard through the media that Mr. Muqtada al-Sadr is prepared to comply with the request of the government and National Conference. We will come such an announcement confirm our readiness to accept this initiative of his. Provided that they crystallize it into a tangible and committed position, through a documented declaration from him personally.

May God help all succeed in doing what is good for our people and homeland. Now I'm ready to take questions.

UNIDENTIFIED MALE (through translator): What are the measures that you are taking to protecting the institutions, and oil pipelines?

ALLAWI (through translator): Unfortunately, there are some sides that have attacked the oil infrastructure. Some of them were in the south of Basra, and in the Halfia (ph) oil fields. Of course, the losses of Iraq was more than $160 million. These forces say that they believe in Iraq, claim that. But in fact, this is proof that they want to hurt the Iraqi people. The Ministry of Oil, the Ministry of Defense, with the multi-national forces have put a plan to protect the oil infrastructure. And hopefully this plan is going to be executed right away. And it will be very difficult for them to attack them. RAHIM AL RABAWI, "NAFEZ" NEWSPAPER (through translator): Rahim al Rabawi (ph), "Nafez" newspaper. Mr. Prime Minister, concerning Najaf. Sir, how can you be sure that the -- these groups have their weapons, since there is no accounting to those weapons?

ALLAWI (through translator): There are some conditions that the National Conference has set forth, and the government has done the same.

There are no militias in Iraq. The militias should give all their weapons to the National Guard and the Iraqi security forces. We have not heard directly from al-Sadr himself. We have heard from elements and aides around him, but we did not hear from him directly. When we hear from him, and that he is committed to execute these conditions, we are going to activate the mechanisms with the Iraqi police, and the other military government bodies. And we will give him protection and his group.

KAGAN: We've been listening in to a news conference from Baghdad. That is Prime Minister Ayad Allawi, talking about the situation in Najaf, basically saying time is up for Muqtada al-Sadr. The radical Shiite cleric who has been holed up in that city and keeping basically hostage the Imam Ali Mosque. That it is time to give up and it is time for his Mehdi militia also to give up their arms.

Some questions there about how they'll be able to know if indeed that Muqtada al-Sadr is good to his word. And Ayad Allawi seemed to say that there will be ways to check on that.

Much more ahead, not just from Najaf, but from Baghdad as well with out John Vause.

Meanwhile, let's get some other political news in here from here in the states.

John Kerry calling on the White House to condemn criticism of his Vietnam War record. Kerry's comment follows a report in today's "Washington Post," the story raising more questions about a Vietnam War incident involving Kerry and one of his critics. Larry Thurlow commanded a swift boat alongside Kerry in March of 1969, and is now a member of Swift Boat Veterans for Truth. A group that has attacked Kerry's war record.

In an affidavit last month, Thurlow swore that Kerry wasn't under fire when he pulled an officer out of the water. Thurlow describes Kerry's Bronze Star citation as totally fabricated. But the "Post," citing Thurlow's military records reports several references to all boats of the flotilla coming under fire.

President Bush's plan to redeploy U.S. troops from bases in Asia and Europe is bringing out some critics and supporters.

Our Elaine Quijano is at the White House with that story.

Elaine, good morning. ELAINE QUIJANO, CNN CORRESPONDENT: Good morning, Daryn. White House officials have been making the rounds on TV, both yesterday and today about the president's redeployment plan. Now, that plan would mean some 70,000 U.S. troops, most of them stationed in Europe and Asia, would be redeployed and brought here to be stationed inside the United States.

Now at this hour, National Security Adviser Condoleezza Rice is speaking here in Washington at the U.S. Institute of Peace, where aides say she is focusing mainly on the importance of outreach to the Muslim world. But of course, the White House believes that is just one component in fighting terrorism. Another is this redeployment plan, which officials say is necessary to adjust from fighting a Cold War to fighting the war on terror.

Now, Republican Senator John McCain said he is worried about the message that sends to North Korea. Which he believes could see U.S. troop repositioning as a sign of weakness. And yesterday on CNN, Dr. Rice responded to that criticism.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: In the 50 years since the end of the Korean War, a lot has changed. The South Korean forces are stronger. Our forces are more capable technologically. Our air and sea power contribute more to the deterrent. This is a very powerful deterrent against Kim Jung Il. And he would make a terrible mistake in reading anything into it.

(END VIDEO CLIP)

QUIJANO: Now, it was Monday that President Bush announced his redeployment plan at the Veterans of Foreign Wars convention in Cincinnati, Ohio. There the president made the case that with the repositioning, the country would be better protected and U.S. forces more agile in responding to terrorist threats. But Democratic opponent, Senator John Kerry, speaking to the same group yesterday disputed that.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The president's vaguely stated plan does not strengthen our hand in the war on terror. It in no way relieves the strain on our overextended military personnel. It doesn't even begin until 2006 and it takes 10 years to achieve.

And this hastily announced plan raises more doubts about our intentions and our commitment than it provides real answers.

(END VIDEO CLIP)

QUIJANO: Now, Senator Kerry and his supporters argue that this represents a unilateral move. But administration officials insist that allies have been consulted all along the way. And in the words of one administration official, quote, "This is something we're doing with allies, not to them" -- Daryn.

KAGAN: Elaine Quijano at the White House, thank you for that.

Still ahead, we're going to check in on Florida. There is a new crisis in dealing with Hurricane Charley, has nothing to do with the actual storm itself. But there are some big problems in Florida. That story is just ahead.

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KAGAN: There are new health concerns in the wake of Hurricane Charley. Elderly Florida residents face the threat of heatstroke and dehydration in areas where power remains down and water supplies are limited. Adding to the misery, an exploding mosquito population, leaving residents vulnerable to encephalitis and West Nile virus. Folks can't even cool off with a quick dip in the ocean. Health officials warn beach areas could be contaminated by failed septic tanks and sewer systems.

Google hits the street. Find out what price the Internet stock is trading now, opening at $85 a share today. Mary Snow joins us after the break.

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