Return to Transcripts main page

CNN Live At Daybreak

Fighting Erupts in Najaf After 'Final Call' To Disarm

Aired August 20, 2004 - 05:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BETTY NGUYEN, CNN ANCHOR: More fighting and more confusion about the end to the showdown in Najaf.
It is Friday, August 20. This is DAYBREAK.

Well, good morning to you on this Friday and welcome to the second half hour of DAYBREAK. From CNN's global headquarters in Atlanta, I'm Betty Nguyen in for Carol Costello.

Heavy fighting overnight in the Iraqi city of Najaf. Seven Iraqis killed there and 39 wounded. An aide says radical cleric Muqtada al-Sadr has ordered his fighters to turn the mosque in Najaf over to religious authorities, but there is no indication that they're doing it.

In Fallujah, west of Baghdad, at least two Iraqis have been killed by a U.S. airstrike. Witnesses say Fallujah residents were shooting at a U.S. fighter jet with a machine gun before the bombs were dropped.

And take a look at this video just in - actually, this is a live picture. An explosion rocks an underground gas storage facility. This is happening in Moss Bluff, Texas. This facility is Duke Energy's Moss Bluff storage facility. Everyone within a three-mile radius of this facility has been evacuated. Now a second explosion was reported about 1:15 this morning and firefighters say it could take days before this blaze burns itself out. And, of course, we'll continue to follow it.

Insurance executives (UNINTELLIGIBLE) areas of Florida hit hardest by Hurricane Charley say help is on the way for thousands of victims. The storm came ashore a week ago today and cut a wide path of destruction across Florida.

You were there, Chad. You saw that destruction first-hand. It's going to take quite some time for them to get it all cleaned up.

CHAD MYERS, CNN METEOROLOGIST: It is. And, you know, we talk about how many people are still without power. There are probably - and I don't know the number - but there's between two and three thousand power poles that were broken. So this is not just stringing the lines back together. I mean, this is literally digging a new hole, putting a new pole back up there and then getting the lines back on a new pole. So it's going to take a really long time.

And even here in Atlanta this morning as I was driving to work, a truck went by me - a couple did - Indiana Restoration Services - and they were on their way to Florida. So, I mean, everybody trying to descend on that area. There's so much work to be done. So many folks need to get this stuff cleaned up. And so many - so many hardships there still going on. So hard to clean up or even try to - try to fix a mobile home that's been destroyed because there's, like, no real sticks to put them all back together with. You just have to start all over. Pull it out and put a new one in there.

(WEATHER REPORT)

NGUYEN: Well, there are conflicting reports this morning from the battle for Najaf. An aide to renegade cleric Muqtada al-Sadr claims he's ordered his fighters to hand over control of the mosque in Najaf to religious authorities. But al-Sadr's militiamen are still holed up in the mosque and the fighting persists all around it. During the night, explosions lit the sky and automatic-weapons fire echoed through the streets.

CNN producer Kianne Sadeq, who went inside the mosque compound yesterday with other journalists, reports constant sounds of mortar explosions and sniper fire.

For more on the al-Sadr problem and the efforts to solve it, we want to go live now to London. M.J. Gohel is with the Asia-Pacific Foundation.

Good morning to you.

M.J. GOHEL, ASIA-PACIFIC FOUNDATION: Good morning, Betty.

NGUYEN: Well, let's talk about the situation. Muqtada al-Sadr has asked supporters to hand over the keys to the mosque. We asked John Vause a little bit earlier - who's in Baghdad - is this purely symbolic, or is al-Sadr going to disarm? Is this a sign that he may disarm and his militiamen will leave the mosque?

GOHEL: Well, this is the whole dilemma. It's almost impossible to know what Muqtada al-Sadr is going to do. He blows hot and cold. Quite often, he's said he's going to disarm the militia and hand over the Imam Ali shrine to the religious authorities. Then 24 hours later, he changes his mind and the fighting goes on.

He really has not been very consistent, and I think the Iraqi government of Prime Minister Allawi is at the end of its patience.

NGUYEN: Not consistent, yet he seems to be setting the agenda nonetheless.

GOHEL: This is the whole point.

He is, in fact, manipulating the situation and establishing a power base for himself. He was, in fact, a relatively unknown cleric; he was a junior cleric. And today, he has not only a national profile, but an international one, and he, in fact, is really bypassing Grand Ayatollah Sistani in terms of influence in Iraq.

NGUYEN: OK, M.J. So, in your opinion, what should the Iraqi government do? They've already sent out this final call. Obviously, more fighting has occurred around the mosque.

What's the next step?

GOHEL: Well, the simple fact is that Prime Minister Allawi cannot allow any one individual to have a private militia. I mean, if Allawi does nothing, the Iraqi government takes no action, this would be offering a blank check to insurgents of all kinds and the security situation would only get worse.

I think the Iraqi government has to put down a deadline, a fixed deadline, by which time Muqtada al-Sadr must adhere to it and disarm and leave the Imam Ali shrine. And if he doesn't do that, then obviously some action has to be taken.

The problem, of course, is that if the shrine is damaged in any kind of military action, this could alienate the Shiite population of Iraq, and 60 percent of Iraq is Shiite Muslim. And on the whole, they have been very supportive of the coalition, and it would be a great pity to alienate that support.

NGUYEN: Let's talk about that a little bit, because if the shrine is damaged, these holy sites damaged, who is to blame? The Iraqi government? Muqtada al-Sadr? His militiamen? Or even the U.S.?

GOHEL: Well, really speaking, it's Muqtada al-Sadr. To use a holy shrine as a base for military operations, to store ammunition, to launch raids, is really sacrilegious. So in real terms, it is Muqtada al-Sadr who is - who should be held to blame.

But in reality, the - the population there - not only in Iraq, but in neighboring countries - will blame the coalition forces for any damage. And this is where the great dilemma is - at how to extract this man from this holy shrine without doing any damage to the shrine itself.

I suppose the simplest course would be to lay siege on the shrine and hope to starve him out of there along with his militiamen. But this would be a long process, and I don't think the Iraqi government has time on its side.

NGUYEN: Exactly, because something needs to be done - be done quickly, at least in your eyes, because if it's not done quickly, will Iraqis as a whole lose faith in this interim government and its power?

GOHEL: Well, indeed. I think this whole situation has been handled very badly. In fact, the whole sorry Iraqi saga has been one of lost opportunities.

This should have been resolved many, many months ago. And in fact, the Allawi government has been dithering, and I think the reason for this is that there are divisions within the Iraqi government. There are some who want to take a hard line and immediately. There are others who want to show a bit more patience and hope for a negotiated settlement. And in the meantime, Muqtada al-Sadr is increasing his power base. I think it - really, this thing has to be now resolved within a matter of a day or two. It should not really go on for a week or two weeks anymore.

NGUYEN: Swift action. M.J. Gohel, thank you so much for your insight this morning.

GOHEL: My pleasure.

NGUYEN: Iraq's oil fields are a major target for insurgents and have been since the war.

Our senior international editor, David Clinch, joins us now to talk about the recent attack on Iraq's oil fields.

This has become a big problem.

(CROSSTALK)

DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: You know, we're talking there about Najaf and the complicated situation there. It seems somewhat distant and complicated, but it's a very real connection between that and the price of your gallon of gas here in the United States. A very real connection.

Supporters of al-Sadr have threatened to attack pipelines. And whether it's his group or not, those attacks have happened. There was an attack in the north where, of course, the Shiites are not strong. But also an attack in the south, where buildings belonging to the Southern Oil Company were burnt down, or burnt - very badly burned near Basra.

Now we have to be careful here - we at CNN, the media have to be careful. This is a very dramatic picture of an oil pipeline in Iraq. But this northern pipeline really doesn't affect the price of global oil. It looks dramatic, it looks like it's something very important. But this northern pipeline is basically a domestic one. It's a very small percentage of the flow of Iraqi oil.

The southern pipeline is the more important. But burning buildings down, offices, is dramatic. It intimidates officers, it intimidates the people working on those southern pipelines. But it doesn't actually affect the export of oil from the south in Iraq.

So it's important that we distinguish between attacks that do have a specific effect on the flow of oil out of Iraq.

Now, the flow of oil of Iraq is about half what it should be, but it's no worse because those buildings were burnt down than it would be if they hadn't been burnt down...

NGUYEN: (UNINTELLIGIBLE) in the south, if those fields are attacked and a lot of damage is done there, that's going to affect oil the worldwide.

CLINCH: That's exactly the point. I mean, you - you look at the Wall Street Journal today talking about this story in general. What they're talking is the momentum of fear.

Now, a lot of this, of course, is driven by speculators, no by real supply issues at all. But if there is a supply issue, if there is an attack on a pipeline that really does affect the flow of oil in Iraq, or for that matter some instability in Venezuela, in Russia or Saudi Arabia or somewhere else - a real attack that affects the flow of oil, this momentum of fear then puts us over that $50 a barrel for crude oil...

NGUYEN: Nobody wants that.

CLINCH: ...in New York, and where does it stop?

The interesting thing that we're looking at here - perhaps not as severe as previous oil crunches, but it may last longer. And that's where the economic - the economy comes in here in the U.S. Big issue in the election, and if this goes on for a long time, it's an even bigger issue.

NGUYEN: Got to keep an eye on it.

All right. Senior international editor, David Clinch, thank you so much.

CLINCH: All right.

NGUYEN: In the next hour of DAYBREAK, covering Africa. From the crises in Sudan to the snowcaps of Mount Kilimanjaro, our Jeff Koinange has - or was there on the front lines, and he joins us live in the next hour of DAYBREAK right here in the studio with a first- hand account.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

NGUYEN: Your news, money, weather and sports. The time right now is 5:45 Eastern, and here what all - here's what's all-new this morning.

In Iraq, heavy fighting wages on in Najaf, where radical cleric Muqtada al-Sadr refuses to disband his militia. The Iraqi government has threatened to send a massive force to root them out.

For the second straight year, Harvard and Princeton share the top spot in the U.S. News and World Report rankings of America's best colleges. Yale is No. 3.

In money now, mortgage rates continue their summer slide. Freddie Mac says the average for 30-year mortgages dropped to 5.81 percent. It's the lowest level in four months. In culture, Saturday is Fantasia Barrino Day in North Carolina. The American Idol winner makes her first home-state appearance with the American Idols Tour.

And in sports, Eli Manning had a decent debut as the Giants' starting quarterback, but the Panthers Jack Delhomme stole the show from the top draft pick. Carolina topped New York 27-20 in preseason play.

(WEATHER REPORT)

NGUYEN: Well, text books used at the Islamic Saudi Academy in Washington - in a Washington suburb raise questions about what Saudi children are being taught right here in the U.S.

CNN's Brian Todd has those details.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): In Saudi classrooms, early lessons encouraging intolerance.

CNN has obtained copies of textbooks believed to be used at the Islamic Saudi Academy, a Washington-area school primarily for children of Saudi nationals, funded by the Saudi government.

The adult-sounding title for a first-grade textbook: "Monotheism, or the Belief in the Oneness of God and Islamic Jurisprudence."

The Saudi embassy confirms this book is also used at schools in the kingdom. We got independent translation of the text. On Page 19, one line reads: "Any religion other than Islam is false." On the same page, in a section titled "Instructions to the Teacher" - quote - "explain that any religion other than Islam is false, such as Judaism, Christianity and others."

ALI AL-AHMED, SAUDI INSTITUTE: It teaches hatred.

TODD: Ali al-Ahmed runs the Saudi Institute, a group which opposes the Saudi royal family.

AL-AHMED: The problem with this specific text that it is taught to children who are 6 years old who do not differentiate between - who do not have the capacity to understand these complex issues, that religions (ph) have different views on life and God and so on.

TODD: Al-Ahmed says this is systematic, and claims textbooks used in grades contain even harsher language describing Jews and others.

We obtained two textbooks for high-school grades, and found a passage saying that in one instance, in the days of the prophet, the Jews conspired on Islam and its people and got them to fight one another.

In another textbook, a passage recommending that Muslims should not acknowledge other religions' holidays, a phrase borrowing from the Koran that all non-Muslims are infidels. Quote - "One of the greatest requisites of hating the infidels and not dealing with them is to leave the religious symbols and rituals."

Ali al-Ahmed claims these books are also used at the Islamic Saudi Academy.

AL-AHMED: What's really discomforting is the fact that the Saudi government is teaching American and Saudi children this in Washington, D.C., using diplomatic cover to teach this - to teach that Christians and Jews are bad people.

TODD: We called the Islamic Saudi Academy repeatedly for comment. When they didn't respond, we went there, first to the campus where first-graders are taught. They referred us to the main campus.

When we got there, we were told to direct our questions to the curriculum to the Saudi embassy. We caught up with Saudi embassy spokesman Nail al-Jubeir.

(on camera): To say that your religion is the only true religion, that's one thing. But to single out two other religions, Judaism, Christianity, as being false.

UNIDENTIFIED MALE: And others. And others.

TODD: As being false. People have a problem with that.

NAIL AL-JUBEIR, SAUDI EMBASSY SPOKESMAN: Well, I mean, there are issues I, you know, may disagree with it and there are feelings from both sides of it. I disagree with the - with that statement, but that's a process that's going to change. And the teaching that we're doing is we're going through the textbooks and revising some of this so that we think it should revised (ph).

TODD (voice-over): Al-Jubeir says the government has been going through a long, section-by-section revision of textbooks, but says that takes time. He says some of this particular language didn't start creeping into Saudi textbooks until the late 70's and 80's. He stresses the Saudi government does not fund so-called madrasas, those schools accused of teaching anti-Western fundamentalism.

For perspective, we went to the Rev. Cannon Michael Wyatt, a theologian at the Washington National Cathedral, which embraces and studies different religions. We asked him if it's common for Christian or Jewish-based schools to include texts saying their religions are paramount above all others.

REV,. MICHAEL WYATT, WASHINGTON NATL. CATHEDRAL: I think it is, particularly I - of the Abrahamic religions. All three of those religions depend on a revelation from God. And so in that case, you get people saying that what was given to us was given to us uniquely.

That does happen in both - in all three religions, in Judaism, in Christianity and in Islam. TODD: Cannon Wyatt says there are conservative schools within those religions where they don't directly point to other religions as false, but do imply that members of those religions need to be converted.

(on camera): As for these textbooks in our story, these are editions for the 2003-2004 school year. Saudi officials tell us they don't know if these same books will be used in the coming year.

Brian Todd, CNN, Alexandria, Virginia.

(END VIDEOTAPE)

NGUYEN: Shifting gears now, it hasn't happened since Mary Lou Retton. Next, a U.S. gymnast's dream of gold comes true. Also, the latest on the men's Olympic basketball team and where the U.S. stands in the medal count.

All of that is coming up in a live report from Athens.

(COMMERCIAL BREAK)

NGUYEN: U.S. athletes get a gold rush at the Olympics, and the American basketball team finally takes control of the courts.

Let's go live now to our Larry Smith at the Summer Games in Athens, Greece.

Hi there, Larry.

LARRY SMITH, CNN SPORTS CORRESPONDENT: Hi. (SPEAKING IN GREEK) we should say.

Good morning from Athens.

1984, it was the year of big brother, Reagan and Mondale racing to the White House and the Soviet boycotts of the Olympic Games - Summer Olympic Games in Los Angeles. That was where Mary Lou Retton vaulted her way into stardom as the last female American gymnast to win the all-around competition.

That is, until last night. And what a night it was at the gymnastics competition. Sixteen-year-old Carly Patterson, living up to expectations and taking gold in the all-around. The ninth teenager in a row to win the women's competition. Patterson has been compared to Retton, and now she has a gold just like her.

(BEGIN VIDEO CLIP)

CARLY PATTERSON, OLYMPIC GOLD MEDALIST: It was all right. I talked to Mary Lou.

QUESTION: What did she say?

PATTERSON: She said she knew I could do it and she knew I had it in me. And she's just really proud and excited for me. (END VIDEO CLIP)

SMITH: Great night for Carly Patterson.

How about Michael Phelps as well? His fourth gold of these games. He won the 200-meter individual medley. Tonight, he swims in the 100-meter butterfly final, going for his seventh medal of these games, which would tie a U.S. record.

Aaron Peirsol - he took gold last night in the 200-meter backstroke. A bit of controversy - two nations protested that Peirsol did an illegal turn on the final lap and he was briefly disqualified. But that was later overturned.

Natalie Coughlin - a big name in these games. Michael Phelps has the most medals overall, with six, but she has the most medals among women, with four. She took bronze last night in the 100-meter freestyle.

By the way, a world record by Jody Henry of Australia in that one.

Three Olympic records were set last night in the swimming. Phelps set on, Peirsol and also Amanda Beard. She wins her first individual gold medal as she wins gold in the 200-meter breaststroke. Once again, that's her first individual medal. She had medaled before in Atlanta and also at the Sydney games as well.

By the way, today track and field beginning. Fifty-five competitions at the stadium.

Betty, let's go back to you.

NGUYEN: Looking forward to that. All right. Larry Smith, thank you.

Well, the U.S. has taken over the lead in the number of Olympic medals. American athletes have now won 35 medals, including 14 gold. That kicks China out of the top spot. They've got 29 medals. Russia, Australia and Japan round out the top five winningest teams.

Aid for victims for Hurricane Charley is pouring in. Ahead, how you can help by participating in an online auction. We have those details in the next hour of DAYBREAK.

(COMMERCIAL BREAK)

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


Aired August 20, 2004 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: More fighting and more confusion about the end to the showdown in Najaf.
It is Friday, August 20. This is DAYBREAK.

Well, good morning to you on this Friday and welcome to the second half hour of DAYBREAK. From CNN's global headquarters in Atlanta, I'm Betty Nguyen in for Carol Costello.

Heavy fighting overnight in the Iraqi city of Najaf. Seven Iraqis killed there and 39 wounded. An aide says radical cleric Muqtada al-Sadr has ordered his fighters to turn the mosque in Najaf over to religious authorities, but there is no indication that they're doing it.

In Fallujah, west of Baghdad, at least two Iraqis have been killed by a U.S. airstrike. Witnesses say Fallujah residents were shooting at a U.S. fighter jet with a machine gun before the bombs were dropped.

And take a look at this video just in - actually, this is a live picture. An explosion rocks an underground gas storage facility. This is happening in Moss Bluff, Texas. This facility is Duke Energy's Moss Bluff storage facility. Everyone within a three-mile radius of this facility has been evacuated. Now a second explosion was reported about 1:15 this morning and firefighters say it could take days before this blaze burns itself out. And, of course, we'll continue to follow it.

Insurance executives (UNINTELLIGIBLE) areas of Florida hit hardest by Hurricane Charley say help is on the way for thousands of victims. The storm came ashore a week ago today and cut a wide path of destruction across Florida.

You were there, Chad. You saw that destruction first-hand. It's going to take quite some time for them to get it all cleaned up.

CHAD MYERS, CNN METEOROLOGIST: It is. And, you know, we talk about how many people are still without power. There are probably - and I don't know the number - but there's between two and three thousand power poles that were broken. So this is not just stringing the lines back together. I mean, this is literally digging a new hole, putting a new pole back up there and then getting the lines back on a new pole. So it's going to take a really long time.

And even here in Atlanta this morning as I was driving to work, a truck went by me - a couple did - Indiana Restoration Services - and they were on their way to Florida. So, I mean, everybody trying to descend on that area. There's so much work to be done. So many folks need to get this stuff cleaned up. And so many - so many hardships there still going on. So hard to clean up or even try to - try to fix a mobile home that's been destroyed because there's, like, no real sticks to put them all back together with. You just have to start all over. Pull it out and put a new one in there.

(WEATHER REPORT)

NGUYEN: Well, there are conflicting reports this morning from the battle for Najaf. An aide to renegade cleric Muqtada al-Sadr claims he's ordered his fighters to hand over control of the mosque in Najaf to religious authorities. But al-Sadr's militiamen are still holed up in the mosque and the fighting persists all around it. During the night, explosions lit the sky and automatic-weapons fire echoed through the streets.

CNN producer Kianne Sadeq, who went inside the mosque compound yesterday with other journalists, reports constant sounds of mortar explosions and sniper fire.

For more on the al-Sadr problem and the efforts to solve it, we want to go live now to London. M.J. Gohel is with the Asia-Pacific Foundation.

Good morning to you.

M.J. GOHEL, ASIA-PACIFIC FOUNDATION: Good morning, Betty.

NGUYEN: Well, let's talk about the situation. Muqtada al-Sadr has asked supporters to hand over the keys to the mosque. We asked John Vause a little bit earlier - who's in Baghdad - is this purely symbolic, or is al-Sadr going to disarm? Is this a sign that he may disarm and his militiamen will leave the mosque?

GOHEL: Well, this is the whole dilemma. It's almost impossible to know what Muqtada al-Sadr is going to do. He blows hot and cold. Quite often, he's said he's going to disarm the militia and hand over the Imam Ali shrine to the religious authorities. Then 24 hours later, he changes his mind and the fighting goes on.

He really has not been very consistent, and I think the Iraqi government of Prime Minister Allawi is at the end of its patience.

NGUYEN: Not consistent, yet he seems to be setting the agenda nonetheless.

GOHEL: This is the whole point.

He is, in fact, manipulating the situation and establishing a power base for himself. He was, in fact, a relatively unknown cleric; he was a junior cleric. And today, he has not only a national profile, but an international one, and he, in fact, is really bypassing Grand Ayatollah Sistani in terms of influence in Iraq.

NGUYEN: OK, M.J. So, in your opinion, what should the Iraqi government do? They've already sent out this final call. Obviously, more fighting has occurred around the mosque.

What's the next step?

GOHEL: Well, the simple fact is that Prime Minister Allawi cannot allow any one individual to have a private militia. I mean, if Allawi does nothing, the Iraqi government takes no action, this would be offering a blank check to insurgents of all kinds and the security situation would only get worse.

I think the Iraqi government has to put down a deadline, a fixed deadline, by which time Muqtada al-Sadr must adhere to it and disarm and leave the Imam Ali shrine. And if he doesn't do that, then obviously some action has to be taken.

The problem, of course, is that if the shrine is damaged in any kind of military action, this could alienate the Shiite population of Iraq, and 60 percent of Iraq is Shiite Muslim. And on the whole, they have been very supportive of the coalition, and it would be a great pity to alienate that support.

NGUYEN: Let's talk about that a little bit, because if the shrine is damaged, these holy sites damaged, who is to blame? The Iraqi government? Muqtada al-Sadr? His militiamen? Or even the U.S.?

GOHEL: Well, really speaking, it's Muqtada al-Sadr. To use a holy shrine as a base for military operations, to store ammunition, to launch raids, is really sacrilegious. So in real terms, it is Muqtada al-Sadr who is - who should be held to blame.

But in reality, the - the population there - not only in Iraq, but in neighboring countries - will blame the coalition forces for any damage. And this is where the great dilemma is - at how to extract this man from this holy shrine without doing any damage to the shrine itself.

I suppose the simplest course would be to lay siege on the shrine and hope to starve him out of there along with his militiamen. But this would be a long process, and I don't think the Iraqi government has time on its side.

NGUYEN: Exactly, because something needs to be done - be done quickly, at least in your eyes, because if it's not done quickly, will Iraqis as a whole lose faith in this interim government and its power?

GOHEL: Well, indeed. I think this whole situation has been handled very badly. In fact, the whole sorry Iraqi saga has been one of lost opportunities.

This should have been resolved many, many months ago. And in fact, the Allawi government has been dithering, and I think the reason for this is that there are divisions within the Iraqi government. There are some who want to take a hard line and immediately. There are others who want to show a bit more patience and hope for a negotiated settlement. And in the meantime, Muqtada al-Sadr is increasing his power base. I think it - really, this thing has to be now resolved within a matter of a day or two. It should not really go on for a week or two weeks anymore.

NGUYEN: Swift action. M.J. Gohel, thank you so much for your insight this morning.

GOHEL: My pleasure.

NGUYEN: Iraq's oil fields are a major target for insurgents and have been since the war.

Our senior international editor, David Clinch, joins us now to talk about the recent attack on Iraq's oil fields.

This has become a big problem.

(CROSSTALK)

DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: You know, we're talking there about Najaf and the complicated situation there. It seems somewhat distant and complicated, but it's a very real connection between that and the price of your gallon of gas here in the United States. A very real connection.

Supporters of al-Sadr have threatened to attack pipelines. And whether it's his group or not, those attacks have happened. There was an attack in the north where, of course, the Shiites are not strong. But also an attack in the south, where buildings belonging to the Southern Oil Company were burnt down, or burnt - very badly burned near Basra.

Now we have to be careful here - we at CNN, the media have to be careful. This is a very dramatic picture of an oil pipeline in Iraq. But this northern pipeline really doesn't affect the price of global oil. It looks dramatic, it looks like it's something very important. But this northern pipeline is basically a domestic one. It's a very small percentage of the flow of Iraqi oil.

The southern pipeline is the more important. But burning buildings down, offices, is dramatic. It intimidates officers, it intimidates the people working on those southern pipelines. But it doesn't actually affect the export of oil from the south in Iraq.

So it's important that we distinguish between attacks that do have a specific effect on the flow of oil out of Iraq.

Now, the flow of oil of Iraq is about half what it should be, but it's no worse because those buildings were burnt down than it would be if they hadn't been burnt down...

NGUYEN: (UNINTELLIGIBLE) in the south, if those fields are attacked and a lot of damage is done there, that's going to affect oil the worldwide.

CLINCH: That's exactly the point. I mean, you - you look at the Wall Street Journal today talking about this story in general. What they're talking is the momentum of fear.

Now, a lot of this, of course, is driven by speculators, no by real supply issues at all. But if there is a supply issue, if there is an attack on a pipeline that really does affect the flow of oil in Iraq, or for that matter some instability in Venezuela, in Russia or Saudi Arabia or somewhere else - a real attack that affects the flow of oil, this momentum of fear then puts us over that $50 a barrel for crude oil...

NGUYEN: Nobody wants that.

CLINCH: ...in New York, and where does it stop?

The interesting thing that we're looking at here - perhaps not as severe as previous oil crunches, but it may last longer. And that's where the economic - the economy comes in here in the U.S. Big issue in the election, and if this goes on for a long time, it's an even bigger issue.

NGUYEN: Got to keep an eye on it.

All right. Senior international editor, David Clinch, thank you so much.

CLINCH: All right.

NGUYEN: In the next hour of DAYBREAK, covering Africa. From the crises in Sudan to the snowcaps of Mount Kilimanjaro, our Jeff Koinange has - or was there on the front lines, and he joins us live in the next hour of DAYBREAK right here in the studio with a first- hand account.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

NGUYEN: Your news, money, weather and sports. The time right now is 5:45 Eastern, and here what all - here's what's all-new this morning.

In Iraq, heavy fighting wages on in Najaf, where radical cleric Muqtada al-Sadr refuses to disband his militia. The Iraqi government has threatened to send a massive force to root them out.

For the second straight year, Harvard and Princeton share the top spot in the U.S. News and World Report rankings of America's best colleges. Yale is No. 3.

In money now, mortgage rates continue their summer slide. Freddie Mac says the average for 30-year mortgages dropped to 5.81 percent. It's the lowest level in four months. In culture, Saturday is Fantasia Barrino Day in North Carolina. The American Idol winner makes her first home-state appearance with the American Idols Tour.

And in sports, Eli Manning had a decent debut as the Giants' starting quarterback, but the Panthers Jack Delhomme stole the show from the top draft pick. Carolina topped New York 27-20 in preseason play.

(WEATHER REPORT)

NGUYEN: Well, text books used at the Islamic Saudi Academy in Washington - in a Washington suburb raise questions about what Saudi children are being taught right here in the U.S.

CNN's Brian Todd has those details.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): In Saudi classrooms, early lessons encouraging intolerance.

CNN has obtained copies of textbooks believed to be used at the Islamic Saudi Academy, a Washington-area school primarily for children of Saudi nationals, funded by the Saudi government.

The adult-sounding title for a first-grade textbook: "Monotheism, or the Belief in the Oneness of God and Islamic Jurisprudence."

The Saudi embassy confirms this book is also used at schools in the kingdom. We got independent translation of the text. On Page 19, one line reads: "Any religion other than Islam is false." On the same page, in a section titled "Instructions to the Teacher" - quote - "explain that any religion other than Islam is false, such as Judaism, Christianity and others."

ALI AL-AHMED, SAUDI INSTITUTE: It teaches hatred.

TODD: Ali al-Ahmed runs the Saudi Institute, a group which opposes the Saudi royal family.

AL-AHMED: The problem with this specific text that it is taught to children who are 6 years old who do not differentiate between - who do not have the capacity to understand these complex issues, that religions (ph) have different views on life and God and so on.

TODD: Al-Ahmed says this is systematic, and claims textbooks used in grades contain even harsher language describing Jews and others.

We obtained two textbooks for high-school grades, and found a passage saying that in one instance, in the days of the prophet, the Jews conspired on Islam and its people and got them to fight one another.

In another textbook, a passage recommending that Muslims should not acknowledge other religions' holidays, a phrase borrowing from the Koran that all non-Muslims are infidels. Quote - "One of the greatest requisites of hating the infidels and not dealing with them is to leave the religious symbols and rituals."

Ali al-Ahmed claims these books are also used at the Islamic Saudi Academy.

AL-AHMED: What's really discomforting is the fact that the Saudi government is teaching American and Saudi children this in Washington, D.C., using diplomatic cover to teach this - to teach that Christians and Jews are bad people.

TODD: We called the Islamic Saudi Academy repeatedly for comment. When they didn't respond, we went there, first to the campus where first-graders are taught. They referred us to the main campus.

When we got there, we were told to direct our questions to the curriculum to the Saudi embassy. We caught up with Saudi embassy spokesman Nail al-Jubeir.

(on camera): To say that your religion is the only true religion, that's one thing. But to single out two other religions, Judaism, Christianity, as being false.

UNIDENTIFIED MALE: And others. And others.

TODD: As being false. People have a problem with that.

NAIL AL-JUBEIR, SAUDI EMBASSY SPOKESMAN: Well, I mean, there are issues I, you know, may disagree with it and there are feelings from both sides of it. I disagree with the - with that statement, but that's a process that's going to change. And the teaching that we're doing is we're going through the textbooks and revising some of this so that we think it should revised (ph).

TODD (voice-over): Al-Jubeir says the government has been going through a long, section-by-section revision of textbooks, but says that takes time. He says some of this particular language didn't start creeping into Saudi textbooks until the late 70's and 80's. He stresses the Saudi government does not fund so-called madrasas, those schools accused of teaching anti-Western fundamentalism.

For perspective, we went to the Rev. Cannon Michael Wyatt, a theologian at the Washington National Cathedral, which embraces and studies different religions. We asked him if it's common for Christian or Jewish-based schools to include texts saying their religions are paramount above all others.

REV,. MICHAEL WYATT, WASHINGTON NATL. CATHEDRAL: I think it is, particularly I - of the Abrahamic religions. All three of those religions depend on a revelation from God. And so in that case, you get people saying that what was given to us was given to us uniquely.

That does happen in both - in all three religions, in Judaism, in Christianity and in Islam. TODD: Cannon Wyatt says there are conservative schools within those religions where they don't directly point to other religions as false, but do imply that members of those religions need to be converted.

(on camera): As for these textbooks in our story, these are editions for the 2003-2004 school year. Saudi officials tell us they don't know if these same books will be used in the coming year.

Brian Todd, CNN, Alexandria, Virginia.

(END VIDEOTAPE)

NGUYEN: Shifting gears now, it hasn't happened since Mary Lou Retton. Next, a U.S. gymnast's dream of gold comes true. Also, the latest on the men's Olympic basketball team and where the U.S. stands in the medal count.

All of that is coming up in a live report from Athens.

(COMMERCIAL BREAK)

NGUYEN: U.S. athletes get a gold rush at the Olympics, and the American basketball team finally takes control of the courts.

Let's go live now to our Larry Smith at the Summer Games in Athens, Greece.

Hi there, Larry.

LARRY SMITH, CNN SPORTS CORRESPONDENT: Hi. (SPEAKING IN GREEK) we should say.

Good morning from Athens.

1984, it was the year of big brother, Reagan and Mondale racing to the White House and the Soviet boycotts of the Olympic Games - Summer Olympic Games in Los Angeles. That was where Mary Lou Retton vaulted her way into stardom as the last female American gymnast to win the all-around competition.

That is, until last night. And what a night it was at the gymnastics competition. Sixteen-year-old Carly Patterson, living up to expectations and taking gold in the all-around. The ninth teenager in a row to win the women's competition. Patterson has been compared to Retton, and now she has a gold just like her.

(BEGIN VIDEO CLIP)

CARLY PATTERSON, OLYMPIC GOLD MEDALIST: It was all right. I talked to Mary Lou.

QUESTION: What did she say?

PATTERSON: She said she knew I could do it and she knew I had it in me. And she's just really proud and excited for me. (END VIDEO CLIP)

SMITH: Great night for Carly Patterson.

How about Michael Phelps as well? His fourth gold of these games. He won the 200-meter individual medley. Tonight, he swims in the 100-meter butterfly final, going for his seventh medal of these games, which would tie a U.S. record.

Aaron Peirsol - he took gold last night in the 200-meter backstroke. A bit of controversy - two nations protested that Peirsol did an illegal turn on the final lap and he was briefly disqualified. But that was later overturned.

Natalie Coughlin - a big name in these games. Michael Phelps has the most medals overall, with six, but she has the most medals among women, with four. She took bronze last night in the 100-meter freestyle.

By the way, a world record by Jody Henry of Australia in that one.

Three Olympic records were set last night in the swimming. Phelps set on, Peirsol and also Amanda Beard. She wins her first individual gold medal as she wins gold in the 200-meter breaststroke. Once again, that's her first individual medal. She had medaled before in Atlanta and also at the Sydney games as well.

By the way, today track and field beginning. Fifty-five competitions at the stadium.

Betty, let's go back to you.

NGUYEN: Looking forward to that. All right. Larry Smith, thank you.

Well, the U.S. has taken over the lead in the number of Olympic medals. American athletes have now won 35 medals, including 14 gold. That kicks China out of the top spot. They've got 29 medals. Russia, Australia and Japan round out the top five winningest teams.

Aid for victims for Hurricane Charley is pouring in. Ahead, how you can help by participating in an online auction. We have those details in the next hour of DAYBREAK.

(COMMERCIAL BREAK)

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