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CNN Live At Daybreak

Latest Developments in Fighting Between Militants Loyal to Muqtada Al-Sadr, U.S. Troops

Aired August 23, 2004 - 06:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: U.S. warplanes bomb an area near the Imam Ali Mosque in Najaf. Fighters loyal to a radical cleric are still holed up inside.
It is Monday, August 23.

This is DAYBREAK.

And good morning to you.

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

Now in the news, a violent morning in the Iraqi city of Najaf. U.S. warplanes have been bombing Shiite militia positions around the Imam Ali Mosque, where fighters loyal to a radical cleric are still holed up this morning. A spokesman for the cleric, Muqtada al-Sadr, says there was serious damage from the bombing.

Hearings started about two and a half hours ago in the Iraqi prisoner abuse scandal. Four U.S. soldiers are facing pretrial hearings today and tomorrow in Germany. This is in regards to Abu Ghraib Prison. Security fears prompted a move from Baghdad.

Back home, what will your next paycheck look like? Sweeping changes to overtime payrolls take effect today. And there is little agreement on how many workers might gain or lose overtime pay under these new rules.

Out West, firefighters were praying for rain and they got it. Rainy weather and cooler temperatures are helping them to battle wildfires in Oregon and Washington State -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Fierce fighting. At least 10 explosions reported this morning around the Imam Ali Mosque in Najaf. Militiamen loyal to renegade cleric Muqtada al-Sadr still hold that shrine and an adviser to al-Sadr says the wall around the mosque was damaged overnight by a U.S. air strike.

Let's head live to Baghdad now and CNN's Diana Muriel for a further update -- good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol. Yes, U.S. air strikes appear to have continued in Najaf from Sunday night through into the early hours of Monday morning. Our team on the ground there have been to the shrine of Imam Ali. They've been to the outer wall of the shrine compound and they've seen for themselves a hole which is about two foot wide in that wall, a very serious breach of the compound wall.

Now, no confirmation as to who was responsible for that. The U.S. forces on the ground there not confirming the -- any information there, not confirming how many may have been killed or injured. And, indeed, representatives of al-Sadr, the renegade cleric in Najaf, or who has been in Najaf, they have not confirmed the numbers of casualties there. But there may have been some. And certainly serious damage to this outer wall.

The stand-off continues between the U.S. forces and the Iraqi government and those loyal to Muqtada al-Sadr who are holding the shrine. And they have been there for around the last two weeks. Negotiations are continuing. The latest seems to be an offer by around 600 Sunni and Shia tribal leaders who have offered to negotiate to stop the fighting and to negotiate between the two sides.

A representative of al-Sadr on the ground in Najaf has told the CNN team there that although they have accepted that offer, they understand that the government has not.

Now, we've not had confirmation from the government that they have rejected this or, indeed, that this offer has, indeed, been made. But in the meantime, there seems to be an impasse there and there is no clear sight of any early resolution to the stand-off that is taking place in Najaf -- Carol.

COSTELLO: There is some brighter news coming out of Iraq this morning.

Tell us about this journalist that's been released, Diana.

MURIEL: Well, that's one set of negotiations which does seem to have been fruitful. This is the 36-year-old French American journalist, Micah Geran, who, together with his translator was kidnapped in Nasiriyah in the southern city in Iraq. They were captured in Nasiriyah about, ohm, just over a week ago.

Now they have been released safe into custody and this was thanks to various negotiations by representatives of journalist organizations, but also by Aws al-Khafaji, who is a representative of al-Sadr in Nasiriyah who was also involved in negotiating other hostage releases. And Micah Geran seems to be in good health and says he hasn't been deterred from continuing to work in Iraq in the future -- Carol.

COSTELLO: All right, Diana Muriel live from Baghdad this morning.

Turning now to the war on terror, after nearly three years of detention, four terror suspects at Guantanamo Bay in Cuba are scheduled to be arraigned tomorrow. Three of those suspects face charges of conspiring with al Qaeda and one faces an attempted murder charge. Their cases will eventually go before a five member military commission.

Critics say the proceedings, with no independent judge and no civilian appeals, will still be unfair.

The alleged ringleader at Abu Ghraib is in court this morning for a pretrial hearing in Germany. Charles Graner, surely you remember his name, could spend 24 years in prison if convicted.

With more, our senior international editor, David Clinch.

Frist off, why is this being held in Germany over Iraq or the United States?

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Well, that is a good question. They had said, the U.S. officials had said a few months ago that they would not consider removing them from Iraq, very conscious of the fact that Iraqis were watching this very closely. But apparently at some point a specific reason, security was the general reason given, but we're not aware of exactly why it has been moved.

We are told it's temporary, though, and that they do plan to go back to Iraq. So we're as interested as you are in that.

Of course, we were talking earlier about the fact that the general reason we're interested in this is that Iraqis were horrified by that. Many Iraqis have made up their mind that it'll never go any higher than just these soldiers. And, you know, we've talked about some of these soldiers asking for President Bush and Donald Rumsfeld to be called as witnesses. That's, of course, not likely.

But we should make it clear, there is a separate track going on within Europe and within the military itself to talk to the higher up officers, General Sanchez and others, who were there on the ground. And what we're pushing the military to tell us at the moment, the official report on that track does not come out for a few days or weeks. We're pushing them to tell us what has General Sanchez said, has he, in fact, been interviewed? Are those officers at that level speaking? And if they are, what's their version of events.

COSTELLO: I don't think you're going to get easy answers from them.

CLINCH: No, perhaps not. But a very interesting -- there is another level and we're watching that.

COSTELLO: I wanted to ask you specifically about what's going on in Germany now. It's pretrial hearings, right? And are all four in the same hearing or are they separate?

CLINCH: There are separate hearings, and lots of different options. Our Chris Burns is inside the court and we'll hear back from him. Graner, the one we've been talking about, is he the ringleader? Is he a scapegoat? Of course, in his version, a scapegoat. And there are many different aspects to this, including for some of them, perhaps, the opportunity to plea, to plea bargain, as we've seen in another case. They might accept lower charges in return for giving evidence against their fellow soldiers.

We don't have an indication that that will happen at this point. All of them, as far as we can see, taking the attitude that they have -- they were either obeying orders or what they were seen doing in images has been misunderstood or misrepresented. So that's the level that we expect it to go. But there is the possibility that one or more of them may take a plea and speak against their fellow soldiers. So interesting.

COSTELLO: David Clinch, many thanks to you.

CLINCH: Right.

COSTELLO: A new report from the now disbanded 9/11 Commission outlines how lax controls on immigration and customs helped hijackers carry out their plot. The staff report says two of the 19 hijackers lied on their visa applications in detectable ways, but were not questioned about it. And the applications of all 19 hijackers had some line items left blank or were incomplete in other ways.

Law makers generally agree intelligence reform is necessary. Now Senate Republicans have a plan that's already drawing fire. They want to reorganize the CIA and strip the Pentagon of its intelligence agencies. The GOP plan would put the nation's largest intelligence gathering operations in the hands of a new national intelligence director. Senate Republicans have yet to share details of the plan with Democrats or even the White House.

In other news across America this morning, a search resumes off California's Malibu Beach today for debris from two small planes that collided on Sunday. Three people now confirmed dead. Those planes collided near Matador State Beach. No identities on those victims yet.

And there could be fireworks at the Scott Peterson trial in Redwood City, California today. Amber Frey, Peterson's former mistress, is expected back on the witness stand. Frey faces cross- examination from Peterson's attorney. For the last couple of weeks, the trial has focused on taped phone calls between Peterson and Frey.

Michael Jackson is another high profile court case in California. Today, more pretrial witnesses are set to take the stand in the child molestation case. Jackson's trial is scheduled to begin on January 31.

Are you a business traveler trying to stay connected to the office while you're in the air? Well, one company is making it easier for you to surf the Web securely while you are in flight.

We'll have a live report on that story in two minutes.

Plus, a history museum. At about 20 after, how one city is remembering the daring route slaves traveled to make it to freedom. And at the half hour, the candidates and what they stand for. A closer look at what the president and Senator Kerry think about the issues that affect you most.

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

(COMMERCIAL BREAK)

COSTELLO: On Wall Street, stocks open on the smiley side this morning, after a welcome slide in oil prices.

The Dow begins the day up 69 points.

The Nasdaq up 18 points.

And the S&P 500 up 7.

Time for a little business buzz now. Forget about watching that in-flight movie. Soon, business travelers can log on in the air.

Carrie Lee has more on that story, live from the NASDAQ market site.

It's always good when you can just work constantly.

CARRIE LEE, CNN CORRESPONDENT: I was going to say the same thing, nonstop work. That's the idea. Well, always we're concerned about worker productivity here, right? According to Reuters, soon business travelers flying on Boeing planes will be able to access the Web on long haul flights. Within six months, Boeing and a company called iPass -- this is a company that makes software that connects business travelers to their offices from remote locations -- plan to offer this service.

Now, we don't know exactly how much it's going to cost yet. The release is expected to come officially today. So we might learn more when they come out with this announcement.

But basically Boeing says seven airlines plan to outfit their planes with this service. And, once again, Carol, expected to come within six months. So it could be a very common thing going forward.

COSTELLO: Interesting.

LEE: Yes.

COSTELLO: I was just going to ask you about the cost. And I know we don't know yet, but we do know how much in flight phone calls are, and they ain't cheap.

LEE: That's right. That's right. So, you know, airlines in a tough position these days, especially with high oil prices. If they can make some money on this, you bet that they're going to try.

COSTELLO: Carrie Lee live from the Nasdaq market site. Thank you.

Your news, money, weather and sports.

It is 6:14 Eastern.

Here's what's all new this morning.

A surveillance tape shows armed masked robbers putting two priceless paintings by Edvard Munch into a getaway car. One of the pieces stolen was the world famous "The Scream." The thieves snatched the paintings at gunpoint in broad daylight from the Oslo Museum.

In Colorado, the "Denver Post" reports a grand jury has handed down an indictment for the alleged use of prostitutes to entice recruits to the University of Colorado's football team. No names revealed yet.

In money news, the Halliburton Company is awaiting a call from the Pentagon. The military is considering withholding 15 percent -- that's about $60 million -- from payment for work done in Iraq. There are several investigations into the company's work there.

In culture, a couple of uglies get whipped by the devil. "Exorcist: The Beginning" took in more than $18 million over the weekend, knocking out last week's winner, "Alien Versus Predator."

In sports, the problems just keep coming for the boys in pinstripes. Anaheim had swept a three game series against New York at Yankee Stadium. Sunday's finals, 4-3, and that doesn't happen often -- Chad.

MYERS: No, not really.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: That's a look at the latest headlines for you this morning.

Acupuncture -- it's fast becoming an alternative to treat the growing problem of obesity. In 20 minutes, we'll explain exactly what the ancient Chinese treatment does to help people lose weight.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: It may seem quite the bizarre place to spread the word of god, but a bible study class at a Hooters restaurant in Atlanta is getting quite popular.

Fredricka Whitfield has more for you.

(BEGIN VIDEO TAPE) FREDRICKA WHITFIELD, CNN ANCHOR (voice-over): It's a restaurant known for its waitresses.

And oh yes, the wings. But at this Hooters near Atlanta, the sexuality comes with a side of spirituality.

UNIDENTIFIED MALE: We're the neighborhood restaurant that will cater to anybody and everybody's needs.

WHITFIELD: And what people here need more than anything, according to Rich Lamborn, is Jesus Christ.

RICH LAMBORN, SINGLE FOCUS: That's why we come here, because this is where the unchurched are.

WHITFIELD: Every week on the restaurant's patio, Lamborn hosts a bible study group called Single Focus that caters to college aged singles.

LAMBORN: From whom do we learn our most valuable lessons?

JUSTIN JONES, ATTENDS BIBLE STUDY: I was like you're doing what at Hooters? A bible study at Hooters? You've got to be kidding me. And so I came. And it was cool.

WHITFIELD: Organizers say what better place to put the teachings of the bible into practice.

LAMBORN: When they see that it's not a book about rules, but it's about life, then I mean that's the opposite of what we try to do.

WHITFIELD: They're not really here to preach to customers, but they encourage waitresses to take part.

MICHELLE AMAYA, HOOTERS WAITRESS: And I've actually sat with them and had discussions when I wasn't busy. And it's just -- it's more along the lines of our age group, the stuff they talk about.

UNIDENTIFIED FEMALE: I just have a nice time talking to them. And they always have a -- something to talk about, other than -- a lot different than other people.

WHITFIELD: Ashley Ellis, a Christian elementary school teacher, had her reservations about Hooters. But after meeting her fiance here, she's all for it.

ASHLEY ELLIS, ATTENDS BIBLE STUDY: Really it's a good way to like reach out to the girls and just tell people what we're all about and just make it comfortable setting for people to learn about God.

WHITFIELD: Adding a little spice to your relationship with God. These believers say it's one way of reaching an age group too often turned off by organized religion.

Fredricka Whitfield, CNN, Atlanta.

(END VIDEO TAPE)

COSTELLO: The Hooters chain allows special groups to book meetings in their restaurants.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: We just got these pictures into CNN. You see heavy smoke rising in the Iraqi city of Najaf. We don't know exactly what's been bombed there, but we do know that there have been several explosions all morning long as militiamen loyal to Muqtada al-Sadr remain holed up in that holy mosque.

It is Monday, August 23.

This is DAYBREAK.

And good morning to you.

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

Now in the news, live pictures for you from Najaf. Here they are. I'm not sure that they're live. They are live.

Intense fighting reported this morning in Najaf between U.S. troops and militiamen holding a Shiite mosque. At least 10 explosions have been heard. An aide to radical cleric Muqtada al-Sadr says several people have been killed and wounded.

Hearings now under way this morning in the Iraqi prisoner abuse scandal. Four U.S. soldiers are facing pretrial hearings today and tomorrow in Germany. Security fears prompted a move from Baghdad.

Back home, what will your next paycheck look like? Sweeping changes to overtime payrolls take effect today. And there is little agreement on how many workers might gain or lose overtime pay under the new rules.

Law makers are putting in more time on terror related issues. Two House panels are holding hearings about three and a half hours from now on the findings of the now disbanded 9/11 Commission. Commission staffers have put out extra reports that cite serious flaws in the nation's immigration system.

Now to Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Both presidential candidates are taking a break from the scramble for votes. President Bush is at his ranch near Crawford, Texas. And Senator John Kerry is at home in Boston. But their wives are on the campaign trail, both in the hotly contested state of Ohio. Laura Bush speaks tonight in Cincinnati, at the dedication of the National Underground Railroad Freedom Center. And Teresa Heinz Kerry meets this afternoon in Columbus with women at an AFL-CIO conference.

And in this week leading up to the RNC, the Republican national convention, we're going to RCV, that is, review the candidates' viewpoints. Many Americans still aren't sure about what those viewpoints are. So we thought we'd make it a little easier for you.

This morning, where each candidate stands on civil rights.

On these issues, the candidates appear the most far apart. Example, on the issue of affirmative action, President Bush has both supported and opposed affirmative action. Senator Kerry supports all existing policies.

On to gay marriage now. Senator Kerry is against same-sex marriage, but backs benefits and other rights for same sex couples. President Bush backs a constitutional amendment banning gay marriage.

As for gays in the military, President Bush supports the don't ask, don't tell policy. Senator Kerry favors gay men and women to serve openly in the military.

And on the subject of gay adoption, Kerry supports it; Bush opposes it.

Finally, hate crime legislation. Bush opposes expanding federal law to cover sexual orientation. Kerry wants to expand federal hate crimes legislation to assure equal justice.

And we want to head live to D.C. now.

We'd like to welcome Ron Brownstein, our political analyst, to DAYBREAK -- good morning.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning.

COSTELLO: You know, with the economy, terrorism and Iraq, does it much matter where the candidates stand on issues like civil rights?

BROWNSTEIN: Well, the campaign has been dominated by foreign policy, first of all, more than any campaign since 1980; and secondarily by the economy and health care. These are issues that tend not to be in that top tier. But there's no question that they are important for many voters.

COSTELLO: Like which issues? Gay marriage? Is that a big...

BROWNSTEIN: Well, gay marriage, yes, I think out of the list that we're talking about right now, gay marriage and gay rights are probably the ones that cut the most in this campaign. The president, of course, supports a constitutional amendment to ban gay marriage. Senator Kerry opposes that amendment, even though he says he also opposes gay marriage. He just doesn't want it written into the constitution, the ban. And that has been a, you know, a point of distinction that I think we will hear more about, given the nature of the undecided voters, who tend to be socially conservative folks in many of the Midwestern battlegrounds. It's an issue that Republicans believe works for them.

COSTELLO: But something obscuring even this issue is the Swift Boat issue. And we have to talk about that, because a prominent Republican and war hero, Bob Dole, has weighed in criticizing Kerry's war hero status.

Let's listen to what he said over the weekend.

(BEGIN VIDEO CLIP)

BOB DOLE (R), FORMER PRESIDENTIAL CANDIDATE: But three Purple Hearts and never bled that I know of. I mean, they're all superficial wounds. Three Purple Hearts and you're out. I think Senator Kerry needs to talk about his Senate record, which is pretty thin. That's probably why he's talking about his war record, which is pretty confused.

(END VIDEO CLIP)

COSTELLO: So, how much does this hurt?

BROWNSTEIN: Well, I think it has been hurting Senator Kerry, and that's why the Democrats have been striking back so hard. I mean, the fact is they wanted to stay off the air and save money on television advertising in August. They've been compelled to go into the field with ads responding to this.

I think you can expect a pretty heavy Democratic counterattack. Obviously, the Democrats feel that the Republicans are pushing this issue so hard because Kerry has made strides in polls at establishing himself as a credible commander-in-chief in large part because of his record in Vietnam, and they feel the contrast between Kerry and whatever you feel about his service, he did enlist. He did serve in combat. And, of course, President did neither.

COSTELLO: Well, I know a new Democratic ad is coming out on this issue. Let's listen to what John Edwards has to say in rebuttal to Bob Dole's comments.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: Mr. President, the clock is running. The American people deserve to hear from you, and they deserve to hear from you that these ads should come down.

(END VIDEO CLIP)

COSTELLO: So, he wants President Bush to say stop these ads now, Swift Boat Veterans. But can President Bush do that?

BROWNSTEIN: No. You know, in fact, I don't think either side can really control these outside groups. And what the Democrats are hoping is that if President Bush condemns the ads specifically, even if they continue, he will undercut their credibility.

Look, I mean, this campaign is a very strange thing. I mean, (UNINTELLIGIBLE) that campaigns are always about the future. This is one that is suddenly about the very distant past. We've had a lot of focus on what Senator Kerry did in Vietnam, a lot of questions raised about the veracity of the first -- at least the first Swift Boat ad with a number of accounts disputing their version of events in Vietnam on the Silver Star and the Bronze Star.

But the fact is, is that we are right now locked in this dispute more about Vietnam than Iraq, and it is a very strange turn in the campaign. And by Senator Dole's comments, I think it's one that the Republican side wants to keep the focus on.

COSTELLO: Ron Brownstein joining us live from D.C. this morning, thank you.

BROWNSTEIN: Thank you.

COSTELLO: Tomorrow, Ron will join us again as we continue our week-long series: "The Candidates, the Issues." Tuesday's topic: defense.

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Aired August 23, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: U.S. warplanes bomb an area near the Imam Ali Mosque in Najaf. Fighters loyal to a radical cleric are still holed up inside.
It is Monday, August 23.

This is DAYBREAK.

And good morning to you.

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

Now in the news, a violent morning in the Iraqi city of Najaf. U.S. warplanes have been bombing Shiite militia positions around the Imam Ali Mosque, where fighters loyal to a radical cleric are still holed up this morning. A spokesman for the cleric, Muqtada al-Sadr, says there was serious damage from the bombing.

Hearings started about two and a half hours ago in the Iraqi prisoner abuse scandal. Four U.S. soldiers are facing pretrial hearings today and tomorrow in Germany. This is in regards to Abu Ghraib Prison. Security fears prompted a move from Baghdad.

Back home, what will your next paycheck look like? Sweeping changes to overtime payrolls take effect today. And there is little agreement on how many workers might gain or lose overtime pay under these new rules.

Out West, firefighters were praying for rain and they got it. Rainy weather and cooler temperatures are helping them to battle wildfires in Oregon and Washington State -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Fierce fighting. At least 10 explosions reported this morning around the Imam Ali Mosque in Najaf. Militiamen loyal to renegade cleric Muqtada al-Sadr still hold that shrine and an adviser to al-Sadr says the wall around the mosque was damaged overnight by a U.S. air strike.

Let's head live to Baghdad now and CNN's Diana Muriel for a further update -- good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol. Yes, U.S. air strikes appear to have continued in Najaf from Sunday night through into the early hours of Monday morning. Our team on the ground there have been to the shrine of Imam Ali. They've been to the outer wall of the shrine compound and they've seen for themselves a hole which is about two foot wide in that wall, a very serious breach of the compound wall.

Now, no confirmation as to who was responsible for that. The U.S. forces on the ground there not confirming the -- any information there, not confirming how many may have been killed or injured. And, indeed, representatives of al-Sadr, the renegade cleric in Najaf, or who has been in Najaf, they have not confirmed the numbers of casualties there. But there may have been some. And certainly serious damage to this outer wall.

The stand-off continues between the U.S. forces and the Iraqi government and those loyal to Muqtada al-Sadr who are holding the shrine. And they have been there for around the last two weeks. Negotiations are continuing. The latest seems to be an offer by around 600 Sunni and Shia tribal leaders who have offered to negotiate to stop the fighting and to negotiate between the two sides.

A representative of al-Sadr on the ground in Najaf has told the CNN team there that although they have accepted that offer, they understand that the government has not.

Now, we've not had confirmation from the government that they have rejected this or, indeed, that this offer has, indeed, been made. But in the meantime, there seems to be an impasse there and there is no clear sight of any early resolution to the stand-off that is taking place in Najaf -- Carol.

COSTELLO: There is some brighter news coming out of Iraq this morning.

Tell us about this journalist that's been released, Diana.

MURIEL: Well, that's one set of negotiations which does seem to have been fruitful. This is the 36-year-old French American journalist, Micah Geran, who, together with his translator was kidnapped in Nasiriyah in the southern city in Iraq. They were captured in Nasiriyah about, ohm, just over a week ago.

Now they have been released safe into custody and this was thanks to various negotiations by representatives of journalist organizations, but also by Aws al-Khafaji, who is a representative of al-Sadr in Nasiriyah who was also involved in negotiating other hostage releases. And Micah Geran seems to be in good health and says he hasn't been deterred from continuing to work in Iraq in the future -- Carol.

COSTELLO: All right, Diana Muriel live from Baghdad this morning.

Turning now to the war on terror, after nearly three years of detention, four terror suspects at Guantanamo Bay in Cuba are scheduled to be arraigned tomorrow. Three of those suspects face charges of conspiring with al Qaeda and one faces an attempted murder charge. Their cases will eventually go before a five member military commission.

Critics say the proceedings, with no independent judge and no civilian appeals, will still be unfair.

The alleged ringleader at Abu Ghraib is in court this morning for a pretrial hearing in Germany. Charles Graner, surely you remember his name, could spend 24 years in prison if convicted.

With more, our senior international editor, David Clinch.

Frist off, why is this being held in Germany over Iraq or the United States?

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Well, that is a good question. They had said, the U.S. officials had said a few months ago that they would not consider removing them from Iraq, very conscious of the fact that Iraqis were watching this very closely. But apparently at some point a specific reason, security was the general reason given, but we're not aware of exactly why it has been moved.

We are told it's temporary, though, and that they do plan to go back to Iraq. So we're as interested as you are in that.

Of course, we were talking earlier about the fact that the general reason we're interested in this is that Iraqis were horrified by that. Many Iraqis have made up their mind that it'll never go any higher than just these soldiers. And, you know, we've talked about some of these soldiers asking for President Bush and Donald Rumsfeld to be called as witnesses. That's, of course, not likely.

But we should make it clear, there is a separate track going on within Europe and within the military itself to talk to the higher up officers, General Sanchez and others, who were there on the ground. And what we're pushing the military to tell us at the moment, the official report on that track does not come out for a few days or weeks. We're pushing them to tell us what has General Sanchez said, has he, in fact, been interviewed? Are those officers at that level speaking? And if they are, what's their version of events.

COSTELLO: I don't think you're going to get easy answers from them.

CLINCH: No, perhaps not. But a very interesting -- there is another level and we're watching that.

COSTELLO: I wanted to ask you specifically about what's going on in Germany now. It's pretrial hearings, right? And are all four in the same hearing or are they separate?

CLINCH: There are separate hearings, and lots of different options. Our Chris Burns is inside the court and we'll hear back from him. Graner, the one we've been talking about, is he the ringleader? Is he a scapegoat? Of course, in his version, a scapegoat. And there are many different aspects to this, including for some of them, perhaps, the opportunity to plea, to plea bargain, as we've seen in another case. They might accept lower charges in return for giving evidence against their fellow soldiers.

We don't have an indication that that will happen at this point. All of them, as far as we can see, taking the attitude that they have -- they were either obeying orders or what they were seen doing in images has been misunderstood or misrepresented. So that's the level that we expect it to go. But there is the possibility that one or more of them may take a plea and speak against their fellow soldiers. So interesting.

COSTELLO: David Clinch, many thanks to you.

CLINCH: Right.

COSTELLO: A new report from the now disbanded 9/11 Commission outlines how lax controls on immigration and customs helped hijackers carry out their plot. The staff report says two of the 19 hijackers lied on their visa applications in detectable ways, but were not questioned about it. And the applications of all 19 hijackers had some line items left blank or were incomplete in other ways.

Law makers generally agree intelligence reform is necessary. Now Senate Republicans have a plan that's already drawing fire. They want to reorganize the CIA and strip the Pentagon of its intelligence agencies. The GOP plan would put the nation's largest intelligence gathering operations in the hands of a new national intelligence director. Senate Republicans have yet to share details of the plan with Democrats or even the White House.

In other news across America this morning, a search resumes off California's Malibu Beach today for debris from two small planes that collided on Sunday. Three people now confirmed dead. Those planes collided near Matador State Beach. No identities on those victims yet.

And there could be fireworks at the Scott Peterson trial in Redwood City, California today. Amber Frey, Peterson's former mistress, is expected back on the witness stand. Frey faces cross- examination from Peterson's attorney. For the last couple of weeks, the trial has focused on taped phone calls between Peterson and Frey.

Michael Jackson is another high profile court case in California. Today, more pretrial witnesses are set to take the stand in the child molestation case. Jackson's trial is scheduled to begin on January 31.

Are you a business traveler trying to stay connected to the office while you're in the air? Well, one company is making it easier for you to surf the Web securely while you are in flight.

We'll have a live report on that story in two minutes.

Plus, a history museum. At about 20 after, how one city is remembering the daring route slaves traveled to make it to freedom. And at the half hour, the candidates and what they stand for. A closer look at what the president and Senator Kerry think about the issues that affect you most.

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

(COMMERCIAL BREAK)

COSTELLO: On Wall Street, stocks open on the smiley side this morning, after a welcome slide in oil prices.

The Dow begins the day up 69 points.

The Nasdaq up 18 points.

And the S&P 500 up 7.

Time for a little business buzz now. Forget about watching that in-flight movie. Soon, business travelers can log on in the air.

Carrie Lee has more on that story, live from the NASDAQ market site.

It's always good when you can just work constantly.

CARRIE LEE, CNN CORRESPONDENT: I was going to say the same thing, nonstop work. That's the idea. Well, always we're concerned about worker productivity here, right? According to Reuters, soon business travelers flying on Boeing planes will be able to access the Web on long haul flights. Within six months, Boeing and a company called iPass -- this is a company that makes software that connects business travelers to their offices from remote locations -- plan to offer this service.

Now, we don't know exactly how much it's going to cost yet. The release is expected to come officially today. So we might learn more when they come out with this announcement.

But basically Boeing says seven airlines plan to outfit their planes with this service. And, once again, Carol, expected to come within six months. So it could be a very common thing going forward.

COSTELLO: Interesting.

LEE: Yes.

COSTELLO: I was just going to ask you about the cost. And I know we don't know yet, but we do know how much in flight phone calls are, and they ain't cheap.

LEE: That's right. That's right. So, you know, airlines in a tough position these days, especially with high oil prices. If they can make some money on this, you bet that they're going to try.

COSTELLO: Carrie Lee live from the Nasdaq market site. Thank you.

Your news, money, weather and sports.

It is 6:14 Eastern.

Here's what's all new this morning.

A surveillance tape shows armed masked robbers putting two priceless paintings by Edvard Munch into a getaway car. One of the pieces stolen was the world famous "The Scream." The thieves snatched the paintings at gunpoint in broad daylight from the Oslo Museum.

In Colorado, the "Denver Post" reports a grand jury has handed down an indictment for the alleged use of prostitutes to entice recruits to the University of Colorado's football team. No names revealed yet.

In money news, the Halliburton Company is awaiting a call from the Pentagon. The military is considering withholding 15 percent -- that's about $60 million -- from payment for work done in Iraq. There are several investigations into the company's work there.

In culture, a couple of uglies get whipped by the devil. "Exorcist: The Beginning" took in more than $18 million over the weekend, knocking out last week's winner, "Alien Versus Predator."

In sports, the problems just keep coming for the boys in pinstripes. Anaheim had swept a three game series against New York at Yankee Stadium. Sunday's finals, 4-3, and that doesn't happen often -- Chad.

MYERS: No, not really.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: That's a look at the latest headlines for you this morning.

Acupuncture -- it's fast becoming an alternative to treat the growing problem of obesity. In 20 minutes, we'll explain exactly what the ancient Chinese treatment does to help people lose weight.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: It may seem quite the bizarre place to spread the word of god, but a bible study class at a Hooters restaurant in Atlanta is getting quite popular.

Fredricka Whitfield has more for you.

(BEGIN VIDEO TAPE) FREDRICKA WHITFIELD, CNN ANCHOR (voice-over): It's a restaurant known for its waitresses.

And oh yes, the wings. But at this Hooters near Atlanta, the sexuality comes with a side of spirituality.

UNIDENTIFIED MALE: We're the neighborhood restaurant that will cater to anybody and everybody's needs.

WHITFIELD: And what people here need more than anything, according to Rich Lamborn, is Jesus Christ.

RICH LAMBORN, SINGLE FOCUS: That's why we come here, because this is where the unchurched are.

WHITFIELD: Every week on the restaurant's patio, Lamborn hosts a bible study group called Single Focus that caters to college aged singles.

LAMBORN: From whom do we learn our most valuable lessons?

JUSTIN JONES, ATTENDS BIBLE STUDY: I was like you're doing what at Hooters? A bible study at Hooters? You've got to be kidding me. And so I came. And it was cool.

WHITFIELD: Organizers say what better place to put the teachings of the bible into practice.

LAMBORN: When they see that it's not a book about rules, but it's about life, then I mean that's the opposite of what we try to do.

WHITFIELD: They're not really here to preach to customers, but they encourage waitresses to take part.

MICHELLE AMAYA, HOOTERS WAITRESS: And I've actually sat with them and had discussions when I wasn't busy. And it's just -- it's more along the lines of our age group, the stuff they talk about.

UNIDENTIFIED FEMALE: I just have a nice time talking to them. And they always have a -- something to talk about, other than -- a lot different than other people.

WHITFIELD: Ashley Ellis, a Christian elementary school teacher, had her reservations about Hooters. But after meeting her fiance here, she's all for it.

ASHLEY ELLIS, ATTENDS BIBLE STUDY: Really it's a good way to like reach out to the girls and just tell people what we're all about and just make it comfortable setting for people to learn about God.

WHITFIELD: Adding a little spice to your relationship with God. These believers say it's one way of reaching an age group too often turned off by organized religion.

Fredricka Whitfield, CNN, Atlanta.

(END VIDEO TAPE)

COSTELLO: The Hooters chain allows special groups to book meetings in their restaurants.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: We just got these pictures into CNN. You see heavy smoke rising in the Iraqi city of Najaf. We don't know exactly what's been bombed there, but we do know that there have been several explosions all morning long as militiamen loyal to Muqtada al-Sadr remain holed up in that holy mosque.

It is Monday, August 23.

This is DAYBREAK.

And good morning to you.

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

Now in the news, live pictures for you from Najaf. Here they are. I'm not sure that they're live. They are live.

Intense fighting reported this morning in Najaf between U.S. troops and militiamen holding a Shiite mosque. At least 10 explosions have been heard. An aide to radical cleric Muqtada al-Sadr says several people have been killed and wounded.

Hearings now under way this morning in the Iraqi prisoner abuse scandal. Four U.S. soldiers are facing pretrial hearings today and tomorrow in Germany. Security fears prompted a move from Baghdad.

Back home, what will your next paycheck look like? Sweeping changes to overtime payrolls take effect today. And there is little agreement on how many workers might gain or lose overtime pay under the new rules.

Law makers are putting in more time on terror related issues. Two House panels are holding hearings about three and a half hours from now on the findings of the now disbanded 9/11 Commission. Commission staffers have put out extra reports that cite serious flaws in the nation's immigration system.

Now to Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Both presidential candidates are taking a break from the scramble for votes. President Bush is at his ranch near Crawford, Texas. And Senator John Kerry is at home in Boston. But their wives are on the campaign trail, both in the hotly contested state of Ohio. Laura Bush speaks tonight in Cincinnati, at the dedication of the National Underground Railroad Freedom Center. And Teresa Heinz Kerry meets this afternoon in Columbus with women at an AFL-CIO conference.

And in this week leading up to the RNC, the Republican national convention, we're going to RCV, that is, review the candidates' viewpoints. Many Americans still aren't sure about what those viewpoints are. So we thought we'd make it a little easier for you.

This morning, where each candidate stands on civil rights.

On these issues, the candidates appear the most far apart. Example, on the issue of affirmative action, President Bush has both supported and opposed affirmative action. Senator Kerry supports all existing policies.

On to gay marriage now. Senator Kerry is against same-sex marriage, but backs benefits and other rights for same sex couples. President Bush backs a constitutional amendment banning gay marriage.

As for gays in the military, President Bush supports the don't ask, don't tell policy. Senator Kerry favors gay men and women to serve openly in the military.

And on the subject of gay adoption, Kerry supports it; Bush opposes it.

Finally, hate crime legislation. Bush opposes expanding federal law to cover sexual orientation. Kerry wants to expand federal hate crimes legislation to assure equal justice.

And we want to head live to D.C. now.

We'd like to welcome Ron Brownstein, our political analyst, to DAYBREAK -- good morning.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning.

COSTELLO: You know, with the economy, terrorism and Iraq, does it much matter where the candidates stand on issues like civil rights?

BROWNSTEIN: Well, the campaign has been dominated by foreign policy, first of all, more than any campaign since 1980; and secondarily by the economy and health care. These are issues that tend not to be in that top tier. But there's no question that they are important for many voters.

COSTELLO: Like which issues? Gay marriage? Is that a big...

BROWNSTEIN: Well, gay marriage, yes, I think out of the list that we're talking about right now, gay marriage and gay rights are probably the ones that cut the most in this campaign. The president, of course, supports a constitutional amendment to ban gay marriage. Senator Kerry opposes that amendment, even though he says he also opposes gay marriage. He just doesn't want it written into the constitution, the ban. And that has been a, you know, a point of distinction that I think we will hear more about, given the nature of the undecided voters, who tend to be socially conservative folks in many of the Midwestern battlegrounds. It's an issue that Republicans believe works for them.

COSTELLO: But something obscuring even this issue is the Swift Boat issue. And we have to talk about that, because a prominent Republican and war hero, Bob Dole, has weighed in criticizing Kerry's war hero status.

Let's listen to what he said over the weekend.

(BEGIN VIDEO CLIP)

BOB DOLE (R), FORMER PRESIDENTIAL CANDIDATE: But three Purple Hearts and never bled that I know of. I mean, they're all superficial wounds. Three Purple Hearts and you're out. I think Senator Kerry needs to talk about his Senate record, which is pretty thin. That's probably why he's talking about his war record, which is pretty confused.

(END VIDEO CLIP)

COSTELLO: So, how much does this hurt?

BROWNSTEIN: Well, I think it has been hurting Senator Kerry, and that's why the Democrats have been striking back so hard. I mean, the fact is they wanted to stay off the air and save money on television advertising in August. They've been compelled to go into the field with ads responding to this.

I think you can expect a pretty heavy Democratic counterattack. Obviously, the Democrats feel that the Republicans are pushing this issue so hard because Kerry has made strides in polls at establishing himself as a credible commander-in-chief in large part because of his record in Vietnam, and they feel the contrast between Kerry and whatever you feel about his service, he did enlist. He did serve in combat. And, of course, President did neither.

COSTELLO: Well, I know a new Democratic ad is coming out on this issue. Let's listen to what John Edwards has to say in rebuttal to Bob Dole's comments.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: Mr. President, the clock is running. The American people deserve to hear from you, and they deserve to hear from you that these ads should come down.

(END VIDEO CLIP)

COSTELLO: So, he wants President Bush to say stop these ads now, Swift Boat Veterans. But can President Bush do that?

BROWNSTEIN: No. You know, in fact, I don't think either side can really control these outside groups. And what the Democrats are hoping is that if President Bush condemns the ads specifically, even if they continue, he will undercut their credibility.

Look, I mean, this campaign is a very strange thing. I mean, (UNINTELLIGIBLE) that campaigns are always about the future. This is one that is suddenly about the very distant past. We've had a lot of focus on what Senator Kerry did in Vietnam, a lot of questions raised about the veracity of the first -- at least the first Swift Boat ad with a number of accounts disputing their version of events in Vietnam on the Silver Star and the Bronze Star.

But the fact is, is that we are right now locked in this dispute more about Vietnam than Iraq, and it is a very strange turn in the campaign. And by Senator Dole's comments, I think it's one that the Republican side wants to keep the focus on.

COSTELLO: Ron Brownstein joining us live from D.C. this morning, thank you.

BROWNSTEIN: Thank you.

COSTELLO: Tomorrow, Ron will join us again as we continue our week-long series: "The Candidates, the Issues." Tuesday's topic: defense.

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