Return to Transcripts main page

CNN Live At Daybreak

Two Airliners Crash in Russia Under Mysterious Circumstances; Report Cites Lack of Discipline, Poor Oversight at Abu Ghraib Prison

Aired August 25, 2004 - 05:00   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: Two airliners crash in Russia under mysterious circumstances. The question this morning, was it terrorism?
It is Wednesday, August 25.

This is DAYBREAK.

And good morning to you.

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

Now in the news, a plea to the people from one of Iraq's top clerics. The Grand Ayatollah Ali al-Sistani is asking all Iraqis to march to Najaf. U.S. and Iraqi forces have been battling Shiite militiamen there. Al-Sistani says the city needs to be rescued from the violence, but he isn't saying exactly how that should happen.

The U.S. military is hitting hard in Fallujah this morning. U.S. planes and tanks have been pounding insurgent positions in the town west of Baghdad. No word yet on casualties.

Could there be more legal action in the Iraqi prisoner abuse scandal? A Pentagon source tells CNN that's what Major General George Fay may recommend in a military report he's putting out today.

And back overseas, a dozen people are reported dead in a typhoon that's lashing Asia this morning. The storm is triggering mudslides and blackouts in Taiwan. It's now heading for China after drenching Japan earlier.

And I remember you mentioning this yesterday -- Chad.

CHAD MYERS, CNN METEOROLOGIST: It's right behind me, Carol.

There's Taiwan right there. There's the island. Here's mainland China. It came across the Taiwan Straits and is now moving right onshore here, the same places where we've had typhoons in the past couple of weeks. So the area is already saturated and a lot of mud slides already talked about here. And obviously getting sketchy reports out of there now, because over a million people without power.

Here is Chaba. Here is a very much larger storm. This is Aere that moved across Taiwan. Here's Chaba. It's moving on up toward Japan here, but still very, very strong, at 130 knots. Still a category three, category four storm. So we still have to watch this. Still right on up there toward, let's say, the Kobe area.

(WEATHER REPORT)

COSTELLO: There are fears of terrorism in Russia this morning. Two airliners crash literally within seconds of each other. Close to 90 people are dead this morning.

Ryan Chilcote is following developments there.

He joins us live from Moscow.

Tell us about this -- Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Well, good morning, Carol.

Actually, Russian officials are putting that number at 89 right now. That's what they say. They're saying, they say that 89 people went down on those two planes. They're saying that they believe that all of those people died and they do not believe that there are really any chances for survivors at either of the crash sites.

Let's start with the first plane to disappear. It was on its way to the Russian city of Volgograd. About halfway into its flight there were about 43 people on board the plane. Halfway into the flight, it simply vanished from radar screens, from the radar screens of the Russian air traffic controllers. It then crashed.

Eyewitnesses in the area report hearing large explosions even before the plane impacted in the Russian countryside.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (THROUGH TRANSLATOR): First I heard a roaring noise as if a plane was driving by my house. Then there were loud noises as if somebody was knocking on my window. I even went outside to check. There was nobody there, so I went to bed.

(END VIDEO CLIP)

CHILCOTE: Carol, now they are saying that they've found several body fragments at that site from the people on that plane. They're also saying that they found the black boxes, or at least some of the black boxes from that plane. That was the plane that was on its way to Volgograd.

Now, just literally within four minutes time -- we don't know the exact interval -- but literally within minutes, a second plane, this one on its way to the Russian resort town of Sochi, disappeared from the radar screens. Russian search and rescue officials looking for it for a very long time. And we have some unconfirmed reports from an official who did not identify himself, talking to the Russian media, saying that there may have been a situation where there was an attack on the crew on that plane and there may have even been a situation where the hijacking alarm was activated on that plane.

The Federal Security Service is in charge of the investigation. They found that plane. They say they found 20 bodies. They say there were about 43 people on that plane. They're looking at all scenarios. This is a very bizarre story. They're looking at all scenarios, including mechanical failure, including terrorism, and they're saying at this point that they don't have any hard evidence that terrorism was behind this.

COSTELLO: Yes, but what are the odds of two planes crashing within four minutes of one another?

You know, the first thing that comes to mind, if it, indeed, was terrorism, is Chechnya.

Anything to that yet?

CHILCOTE: Well, a lot of people -- sure. Russian officials aren't drawing that conclusion publicly. In fact, because this happened, both these planes took off late in the evening and the news didn't really break until 1:00 in the morning, Russian officials haven't said a whole lot, because it's -- this all took place over the middle of the night. But they're not saying, they're not drawing any direct link to terrorism yet. But certainly there are a lot of analysts out there who are looking at this and saying that that's something that you have to pay attention to because they were going to hold a regional election in Chechnya this weekend.

Chechnya is a place where Russian forces continue to battle insurgents in an ongoing, off going guerrilla war there. And it is very customary to have terrorist acts in Russia, on Russian soil, or even in Russian skies, before you have events take place in Chechnya.

So it's definitely something they're going to be looking at, but they're not saying that that's what it was yet and they're not ruling out mechanical failure yet.

COSTELLO: Ryan Chilcote live in Moscow this morning.

Thank you.

More now on the Iraq prisoner abuse scandal. Today, military officials are releasing another report into the alleged abuses at the Abu Ghraib Prison. A Pentagon source says the officials could recommend possible legal action against more than two dozen people. We'll have live coverage of a news conference on that report by Major General George Fay. That hits at 1:30 Eastern.

Fay's report is the second from military officials this week on the prisoner abuse scandal. A report released yesterday cites a lack of discipline and poor oversight at the Abu Ghraib Prison.

More on that from CNN Pentagon correspondent Barbara Starr.

(BEGIN VIDEO TAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): It is a devastating indictment of what the former defense secretary, James Schlesinger, calls the chaos that raged at Abu Ghraib Prison. JAMES SCHLESINGER, PANEL CHAIRMAN: There was sadism on the night shift of Abu Ghraib, sadism that was certainly not authorized. It was kind of "Animal House" on the night shift.

STARR: The pictures that stunned the world were not part of any effort to interrogate prisoners, at the end of the day, undisciplined soldiers with commanders not paying attention.

But the problems perhaps could have been avoided and the report does aim responsibility right at the top. The panel said top military and civilian leaders failed to anticipate the insurgency and the thousands of prisoners they would take into custody.

TILLIE FOWLER, PANEL MEMBER: The Pentagon failed to properly adapt to the situation on the ground and to provide a sufficient number of adequately organized and trained personnel needed to conduct detention operations in Iraq.

STARR: At Abu Ghraib, a disaster brewing. The military police didn't have all their equipment, were poorly trained. At one point, each soldier was responsible for controlling 75 prisoners as opposed to the prison at Guantanamo Bay where the ratio was one to one.

In Baghdad as Lieutenant General Ricardo Sanchez struggled to fight the insurgency, the report notes that senior leaders should have moved to meet the need for additional military police forces. Sanchez and other top leaders criticized for not making clear who was running the prison and for allowing confusing interrogation policies to emerge.

(on camera): But the panel said at the top, it was mistakes, not legal culpability, and neither Defense Secretary Donald Rumsfeld or General Richard Myers, chairman of the Joint Chiefs of Staff, should resign.

Barbara Starr, CNN, the Pentagon.

(END VIDEO TAPE)

COSTELLO: Defense Secretary Donald Rumsfeld will not be in court for now, as you heard Barbara say. A military judge says defense lawyers cannot call Rumsfeld to testify in the court martial of Javal Davis. He's a military policeman accused in the Iraqi prisoner abuse scandal.

Davis' lawyer says Rumsfeld should testify.

(BEGIN VIDEO CLIP)

PAUL BERGRIN, JAVAL DAVIS' ATTORNEY: Because as I laid out in the courtroom -- and I thought meticulously, step by step -- I thought I unequivocally proved, beyond any shadow of a doubt whatsoever, that Rumsfeld had knowledge of the interrogation techniques in this case, that he approved of aggressive intelligence acquisition and that he was part and parcel of what led to the allegations at Abu Ghraib.

(END VIDEO CLIP)

COSTELLO: The judge says he might rethink his ruling if the defense can more closely link Rumsfeld to the scandal.

And that leads us to our e-mail Question of the Day. Should Donald Rumsfeld testify in the Abu Ghraib case? Let us know what you think at daybreak@cnn.com. Daybreak@cnn.com.

A rift at the top. Vice President Dick Cheney is splitting with his boss when it comes to the issue of gay marriage.

More from CNN's Jill Dougherty.

(BEGIN VIDEO TAPE)

DOUGHERTY (voice-over): A campaign issue takes a decidedly personal turn. Vice President Dick Cheney at a town hall meeting in Davenport, Iowa, with his wife Lynne and gay daughter Mary, head of his campaign operations, fields a question about gay marriage.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Lynne and I have a gay daughter, so it's an issue that our family is very familiar with. At this point, I'll say my own preference is, as I've stated, but the president makes basic policy for the administration and he's made it clear that he does, in fact, support a constitutional amendment on this issue.

DOUGHERTY: It was the first time the vice president addressed the issue in as much detail.

CHENEY: Freedom means freedom for everyone. People ought to be free to enter into any kind of relationship they want to.

DOUGHERTY: The vice president's personal views set him apart from President Bush, who back in February proposed passing a constitutional amendment to outlaw gay marriage.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If we are to prevent the meaning of marriage from being changed forever, our nation must enact a constitutional amendment to protect marriage in America.

DOUGHERTY: The vice president's comments came as the Republican Convention's Platform Committee discusses a position on gay marriage. The gay political organization Log Cabin Republicans applauded the vice president's comments, a written statement saying the party should welcome all voices.

"The vice president's comments should be a clear signal" they said "to the drafters of our party's platform to not include a plank that would call for a constitutional amendment."

DOUGHERTY (on camera): Vice President Cheney's role so far in this campaign has been to solidify the conservative Republican base but on gay marriage he finds himself personally at least on the other side of the equation and the timing could be significant. His comments come less than a week before the Republican National Convention.

Jill Dougherty CNN, Crawford, Texas.

(END VIDEO TAPE)

COSTELLO: We're just getting started on DAYBREAK this morning.

Here's what's coming up for you. At 16 minutes after, the American dream goes bust in the heartland. The cold, hard facts of foreclosure. Where you live affects your chances of losing your home.

He's back in Iraq and calling for an effort to rescue the embattled city of Najaf. Just after the half hour, we go live to Baghdad for the latest on the call to action from his top Shiite leader.

And at 54 minutes after, they played against the odds and with a sense of national pride. So what's next for the Iraqi soccer team? We'll take you live to Athens to find out.

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

(COMMERCIAL BREAK)

COSTELLO: Wall Street will open mixed this morning. The Dow was up 25 1/2 points.

The Nasdaq down 2 points.

And the S&P 500 is up a 1/2 point.

On the international markets, Japan's Nikkei gained 144 points, closing today on a three week high.

Euro stocks are not doing as well.

London's FTSE is trading down 1.4 points.

And in Paris, the CAC is down a fraction.

Losing your home -- for many of you, it just might be one of your worst nightmares. I know it's probably everyone's worst nightmare. A report out this morning shows that in some states, the number of foreclosures is higher than ever.

Here's Ceci Rodgers.

(BEGIN VIDEO TAPE)

CECI RODGERS, CNN CORRESPONDENT (voice-over): Detective Traci Harbin is delivering notices of foreclosure in Maryville, Indiana. She's already posted 20 and has 15 more to go.

DET. TRACI HARBIN, LAKE COUNTY SHERIFF'S DEPARTMENT: When we arrive at someone's house and we're talking about a mortgage foreclosure, you're taking away their home, their property. And a person's home is basically their palace. And you never know what they've had to go through. So, you know, you always have to just be mindful of that.

RODGERS: Harbin is telling this homeowner he could lose his house at a sheriff's auction in October.

VINCE MATTIOLI, FACING FORECLOSURE: Is there no other way to avoid that at this point?

RODGERS: Vince Mattioli lost two jobs in the space of two years as a salesman for steel mills and other industrial companies in the area.

MATTIOLI: I'm praying for miracles, several miracles -- for a new job, for a miracle for the house here, that we're able to keep the house.

RODGERS: It's a common story in Indiana, which has the United States' highest foreclosure rate. Contrast that with California and Nevada, states with low foreclosure rates.

(on camera): Nationwide, foreclosure rates are highest in areas that have lost a significant number of manufacturing jobs such as Michigan, Ohio and here in Indiana.

(voice-over): In some parts of the state, foreclosures have reached crisis proportions. In Lake County, Indiana, there have been nearly 1,300 foreclosures so far this year, on pace to break last year's record.

DOUGLAS DUNCAN, MORTGAGE BANKERS ASSASSIN: The most important factor in foreclosures is always employment. And the structural changes that we've seen affecting states with a high manufacturing component has been the biggest factor in their unemployment.

RODGERS: Foreclosure rates have stabilized nationwide, but some question whether that will continue because more than half the nation's mortgages are new, written in the past three years, as homeowners rushed to refinance at low interest rates.

JAY NEVELOFF, KRAMER LEVIN: They were also taking extra money out of their home so they had money to pay for education, to buy things, to fix up the house, to buy a new car.

RODGERS: In other words, it isn't yet clear whether homeowners took on too much debt that could come back to haunt them.

Ceci Rodgers for CNN Financial News, Maryville, Indiana.

(END VIDEO TAPE)

COSTELLO: Your news, money, weather and sports.

It's 5:19 Eastern. Here's what's all new this morning.

Two downed Russian airliners may have been crashed by terrorists. That's the theory intelligence experts are going on right now. Roughly 90 people are feared dead in those crashes. U.S. air strikes not letting up in Fallujah this morning. The new strikes are a response to attacks on Marines. U.S. forces also used tanks and artillery on a number of Iraqi militant positions.

In money news, Federal Reserve Chairman Alan Greenspan says the economic recovery has become both stronger and more sustainable over the past year. He'll speak again on Friday. Investors will look for clues on how quickly interest rates will rise.

In culture, from our gross and disgusting file, the Dave Matthews Band is being sued for $70,000. Why? Well, the State of Illinois says the band's bus driver dumped 800 pounds of liquid human waste into the Chicago River, directly onto a boat crowded with 100 tourists.

In sports, Iraq's Olympic version of the dream team will not be playing for the gold. Paraguay beat Iraq 3-1 last night in soccer. Still, Iraq could win bronze if it beats Italy on Friday -- Chad.

MYERS: Good morning, Carol.

They had some great boxing yesterday, too, I was watching. So nice stuff there.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Hot stories making news on the Web straight ahead.

Also, you say tomato, I say tomato, however you say it, it all equals one big mess. We'll pelt you with all the details ahead.

And our e-mail Question of the Day, Abu Ghraib -- should Rumsfeld testify in the courts-martial? E-mail us at daybreak@cnn.com.

(COMMERCIAL BREAK)

COSTELLO: It is time to check our Web clicks this morning. We're always interested about cnn.com and what you're clicking onto the most. And we have the top three stories for you now.

MYERS: Obviously, the Russian plane crash is the number one story.

COSTELLO: A really strange story.

MYERS: Yes.

COSTELLO: Two planes crash within four minutes.

MYERS: Right.

COSTELLO: One of them breaks apart in the air.

MYERS: Yes.

COSTELLO: They're now searching for bodies out there and we're going to talk to an expert later about this very strange story.

MYERS: As soon as Americans think about this or hear about this, they think al Qaeda. But actually, in fact, there are many other rebel groups that would not mind seeing this happen, as well.

COSTELLO: They don't know if it's terrorism yet.

MYERS: They do not.

COSTELLO: So we'll just have to see.

MYERS: That is absolutely correct.

COSTELLO: The second most clicked on story, Prince Charles accused of sex discrimination. Have you read this one?

MYERS: You know, I couldn't get it. It was a short little story. I didn't quite get what he's being accused of.

COSTELLO: And apparently some woman who worked as a secretary for Prince Charles has filed a complaint alleging sexual discrimination and unfair dismissal. So apparently he fired her and she's charging sex discrimination. So I'm sure that story will play out in the tabloids of London.

MYERS: "We will be contesting the complaint vigorously" is the official quote.

COSTELLO: From the royal palace.

And the third most clicked on story, it's about that Swift Boat Veterans for Truth. Apparently a lawyer for President Bush's reelection campaign disclosed that he's been providing legal advice for the veterans' group. He is directly related to President Bush, but he said he never told President Bush he was doing this and he never accepted any money from this group.

MYERS: Right.

COSTELLO: He's still deciding whether to charge them.

MYERS: The veterans literally asked him a question and he said well, I'm a lawyer, I'm not going to not answer it, and he answered the question for them so.

COSTELLO: So more hot coals on the fire.

MYERS: Yes.

COSTELLO: There you go.

Time for our DAYBREAK "Eye Opener."

Meet Wanda. Here's Wanda. She's an Asian elephant diagnosed with arthritis back in 1998.

MYERS: Hot tub.

COSTELLO: A worker at the Royal Oak, Michigan zoo decided Wanda could use some help from a physical therapist. So for the past few weeks, Wanda's been going through a routine of whirlpool therapy and stretching exercises. So it's a whirlpool, not a hot tub.

MYERS: Well, there was a picture of it there.

COSTELLO: Nothing like a day at the spa, though, huh?

All right, you're hired! The city of Irving, Texas has a problem with rats chewing on tax records and other important papers, so they're looking at some potential candidates to fill the job of mouse catcher. Applicants must have that steely look and keen hunting instincts. That little kitty was tops on the list.

MYERS: He was a cute little guy.

COSTELLO: If you ever go to Spain, try this out.

MYERS: No!

COSTELLO: It's the last tomatina, the tomato festival in Banul. A bunch of folks get together and pelt each other with tomatoes. It starts today, Chad. Just don't wear anything you don't want stained.

Here's what's all new in the next half hour of DAYBREAK.

They've been the sweethearts of the Summer Games. But is all that glitters gold for the Iraqi dream team? We'll take you live to Athens later this hour.

And while the presidential candidates say they'll do more to help working men and women in this country, what exactly does more mean for the middle class? We'll have that story.

But first, a developing story out of Russia. Two airliners crash within seconds of each other. Coincidence or terrorism? We'll get you the latest ahead.

This is DAYBREAK for Wednesday.

(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 25, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Two airliners crash in Russia under mysterious circumstances. The question this morning, was it terrorism?
It is Wednesday, August 25.

This is DAYBREAK.

And good morning to you.

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

Now in the news, a plea to the people from one of Iraq's top clerics. The Grand Ayatollah Ali al-Sistani is asking all Iraqis to march to Najaf. U.S. and Iraqi forces have been battling Shiite militiamen there. Al-Sistani says the city needs to be rescued from the violence, but he isn't saying exactly how that should happen.

The U.S. military is hitting hard in Fallujah this morning. U.S. planes and tanks have been pounding insurgent positions in the town west of Baghdad. No word yet on casualties.

Could there be more legal action in the Iraqi prisoner abuse scandal? A Pentagon source tells CNN that's what Major General George Fay may recommend in a military report he's putting out today.

And back overseas, a dozen people are reported dead in a typhoon that's lashing Asia this morning. The storm is triggering mudslides and blackouts in Taiwan. It's now heading for China after drenching Japan earlier.

And I remember you mentioning this yesterday -- Chad.

CHAD MYERS, CNN METEOROLOGIST: It's right behind me, Carol.

There's Taiwan right there. There's the island. Here's mainland China. It came across the Taiwan Straits and is now moving right onshore here, the same places where we've had typhoons in the past couple of weeks. So the area is already saturated and a lot of mud slides already talked about here. And obviously getting sketchy reports out of there now, because over a million people without power.

Here is Chaba. Here is a very much larger storm. This is Aere that moved across Taiwan. Here's Chaba. It's moving on up toward Japan here, but still very, very strong, at 130 knots. Still a category three, category four storm. So we still have to watch this. Still right on up there toward, let's say, the Kobe area.

(WEATHER REPORT)

COSTELLO: There are fears of terrorism in Russia this morning. Two airliners crash literally within seconds of each other. Close to 90 people are dead this morning.

Ryan Chilcote is following developments there.

He joins us live from Moscow.

Tell us about this -- Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Well, good morning, Carol.

Actually, Russian officials are putting that number at 89 right now. That's what they say. They're saying, they say that 89 people went down on those two planes. They're saying that they believe that all of those people died and they do not believe that there are really any chances for survivors at either of the crash sites.

Let's start with the first plane to disappear. It was on its way to the Russian city of Volgograd. About halfway into its flight there were about 43 people on board the plane. Halfway into the flight, it simply vanished from radar screens, from the radar screens of the Russian air traffic controllers. It then crashed.

Eyewitnesses in the area report hearing large explosions even before the plane impacted in the Russian countryside.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (THROUGH TRANSLATOR): First I heard a roaring noise as if a plane was driving by my house. Then there were loud noises as if somebody was knocking on my window. I even went outside to check. There was nobody there, so I went to bed.

(END VIDEO CLIP)

CHILCOTE: Carol, now they are saying that they've found several body fragments at that site from the people on that plane. They're also saying that they found the black boxes, or at least some of the black boxes from that plane. That was the plane that was on its way to Volgograd.

Now, just literally within four minutes time -- we don't know the exact interval -- but literally within minutes, a second plane, this one on its way to the Russian resort town of Sochi, disappeared from the radar screens. Russian search and rescue officials looking for it for a very long time. And we have some unconfirmed reports from an official who did not identify himself, talking to the Russian media, saying that there may have been a situation where there was an attack on the crew on that plane and there may have even been a situation where the hijacking alarm was activated on that plane.

The Federal Security Service is in charge of the investigation. They found that plane. They say they found 20 bodies. They say there were about 43 people on that plane. They're looking at all scenarios. This is a very bizarre story. They're looking at all scenarios, including mechanical failure, including terrorism, and they're saying at this point that they don't have any hard evidence that terrorism was behind this.

COSTELLO: Yes, but what are the odds of two planes crashing within four minutes of one another?

You know, the first thing that comes to mind, if it, indeed, was terrorism, is Chechnya.

Anything to that yet?

CHILCOTE: Well, a lot of people -- sure. Russian officials aren't drawing that conclusion publicly. In fact, because this happened, both these planes took off late in the evening and the news didn't really break until 1:00 in the morning, Russian officials haven't said a whole lot, because it's -- this all took place over the middle of the night. But they're not saying, they're not drawing any direct link to terrorism yet. But certainly there are a lot of analysts out there who are looking at this and saying that that's something that you have to pay attention to because they were going to hold a regional election in Chechnya this weekend.

Chechnya is a place where Russian forces continue to battle insurgents in an ongoing, off going guerrilla war there. And it is very customary to have terrorist acts in Russia, on Russian soil, or even in Russian skies, before you have events take place in Chechnya.

So it's definitely something they're going to be looking at, but they're not saying that that's what it was yet and they're not ruling out mechanical failure yet.

COSTELLO: Ryan Chilcote live in Moscow this morning.

Thank you.

More now on the Iraq prisoner abuse scandal. Today, military officials are releasing another report into the alleged abuses at the Abu Ghraib Prison. A Pentagon source says the officials could recommend possible legal action against more than two dozen people. We'll have live coverage of a news conference on that report by Major General George Fay. That hits at 1:30 Eastern.

Fay's report is the second from military officials this week on the prisoner abuse scandal. A report released yesterday cites a lack of discipline and poor oversight at the Abu Ghraib Prison.

More on that from CNN Pentagon correspondent Barbara Starr.

(BEGIN VIDEO TAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): It is a devastating indictment of what the former defense secretary, James Schlesinger, calls the chaos that raged at Abu Ghraib Prison. JAMES SCHLESINGER, PANEL CHAIRMAN: There was sadism on the night shift of Abu Ghraib, sadism that was certainly not authorized. It was kind of "Animal House" on the night shift.

STARR: The pictures that stunned the world were not part of any effort to interrogate prisoners, at the end of the day, undisciplined soldiers with commanders not paying attention.

But the problems perhaps could have been avoided and the report does aim responsibility right at the top. The panel said top military and civilian leaders failed to anticipate the insurgency and the thousands of prisoners they would take into custody.

TILLIE FOWLER, PANEL MEMBER: The Pentagon failed to properly adapt to the situation on the ground and to provide a sufficient number of adequately organized and trained personnel needed to conduct detention operations in Iraq.

STARR: At Abu Ghraib, a disaster brewing. The military police didn't have all their equipment, were poorly trained. At one point, each soldier was responsible for controlling 75 prisoners as opposed to the prison at Guantanamo Bay where the ratio was one to one.

In Baghdad as Lieutenant General Ricardo Sanchez struggled to fight the insurgency, the report notes that senior leaders should have moved to meet the need for additional military police forces. Sanchez and other top leaders criticized for not making clear who was running the prison and for allowing confusing interrogation policies to emerge.

(on camera): But the panel said at the top, it was mistakes, not legal culpability, and neither Defense Secretary Donald Rumsfeld or General Richard Myers, chairman of the Joint Chiefs of Staff, should resign.

Barbara Starr, CNN, the Pentagon.

(END VIDEO TAPE)

COSTELLO: Defense Secretary Donald Rumsfeld will not be in court for now, as you heard Barbara say. A military judge says defense lawyers cannot call Rumsfeld to testify in the court martial of Javal Davis. He's a military policeman accused in the Iraqi prisoner abuse scandal.

Davis' lawyer says Rumsfeld should testify.

(BEGIN VIDEO CLIP)

PAUL BERGRIN, JAVAL DAVIS' ATTORNEY: Because as I laid out in the courtroom -- and I thought meticulously, step by step -- I thought I unequivocally proved, beyond any shadow of a doubt whatsoever, that Rumsfeld had knowledge of the interrogation techniques in this case, that he approved of aggressive intelligence acquisition and that he was part and parcel of what led to the allegations at Abu Ghraib.

(END VIDEO CLIP)

COSTELLO: The judge says he might rethink his ruling if the defense can more closely link Rumsfeld to the scandal.

And that leads us to our e-mail Question of the Day. Should Donald Rumsfeld testify in the Abu Ghraib case? Let us know what you think at daybreak@cnn.com. Daybreak@cnn.com.

A rift at the top. Vice President Dick Cheney is splitting with his boss when it comes to the issue of gay marriage.

More from CNN's Jill Dougherty.

(BEGIN VIDEO TAPE)

DOUGHERTY (voice-over): A campaign issue takes a decidedly personal turn. Vice President Dick Cheney at a town hall meeting in Davenport, Iowa, with his wife Lynne and gay daughter Mary, head of his campaign operations, fields a question about gay marriage.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Lynne and I have a gay daughter, so it's an issue that our family is very familiar with. At this point, I'll say my own preference is, as I've stated, but the president makes basic policy for the administration and he's made it clear that he does, in fact, support a constitutional amendment on this issue.

DOUGHERTY: It was the first time the vice president addressed the issue in as much detail.

CHENEY: Freedom means freedom for everyone. People ought to be free to enter into any kind of relationship they want to.

DOUGHERTY: The vice president's personal views set him apart from President Bush, who back in February proposed passing a constitutional amendment to outlaw gay marriage.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If we are to prevent the meaning of marriage from being changed forever, our nation must enact a constitutional amendment to protect marriage in America.

DOUGHERTY: The vice president's comments came as the Republican Convention's Platform Committee discusses a position on gay marriage. The gay political organization Log Cabin Republicans applauded the vice president's comments, a written statement saying the party should welcome all voices.

"The vice president's comments should be a clear signal" they said "to the drafters of our party's platform to not include a plank that would call for a constitutional amendment."

DOUGHERTY (on camera): Vice President Cheney's role so far in this campaign has been to solidify the conservative Republican base but on gay marriage he finds himself personally at least on the other side of the equation and the timing could be significant. His comments come less than a week before the Republican National Convention.

Jill Dougherty CNN, Crawford, Texas.

(END VIDEO TAPE)

COSTELLO: We're just getting started on DAYBREAK this morning.

Here's what's coming up for you. At 16 minutes after, the American dream goes bust in the heartland. The cold, hard facts of foreclosure. Where you live affects your chances of losing your home.

He's back in Iraq and calling for an effort to rescue the embattled city of Najaf. Just after the half hour, we go live to Baghdad for the latest on the call to action from his top Shiite leader.

And at 54 minutes after, they played against the odds and with a sense of national pride. So what's next for the Iraqi soccer team? We'll take you live to Athens to find out.

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

(COMMERCIAL BREAK)

COSTELLO: Wall Street will open mixed this morning. The Dow was up 25 1/2 points.

The Nasdaq down 2 points.

And the S&P 500 is up a 1/2 point.

On the international markets, Japan's Nikkei gained 144 points, closing today on a three week high.

Euro stocks are not doing as well.

London's FTSE is trading down 1.4 points.

And in Paris, the CAC is down a fraction.

Losing your home -- for many of you, it just might be one of your worst nightmares. I know it's probably everyone's worst nightmare. A report out this morning shows that in some states, the number of foreclosures is higher than ever.

Here's Ceci Rodgers.

(BEGIN VIDEO TAPE)

CECI RODGERS, CNN CORRESPONDENT (voice-over): Detective Traci Harbin is delivering notices of foreclosure in Maryville, Indiana. She's already posted 20 and has 15 more to go.

DET. TRACI HARBIN, LAKE COUNTY SHERIFF'S DEPARTMENT: When we arrive at someone's house and we're talking about a mortgage foreclosure, you're taking away their home, their property. And a person's home is basically their palace. And you never know what they've had to go through. So, you know, you always have to just be mindful of that.

RODGERS: Harbin is telling this homeowner he could lose his house at a sheriff's auction in October.

VINCE MATTIOLI, FACING FORECLOSURE: Is there no other way to avoid that at this point?

RODGERS: Vince Mattioli lost two jobs in the space of two years as a salesman for steel mills and other industrial companies in the area.

MATTIOLI: I'm praying for miracles, several miracles -- for a new job, for a miracle for the house here, that we're able to keep the house.

RODGERS: It's a common story in Indiana, which has the United States' highest foreclosure rate. Contrast that with California and Nevada, states with low foreclosure rates.

(on camera): Nationwide, foreclosure rates are highest in areas that have lost a significant number of manufacturing jobs such as Michigan, Ohio and here in Indiana.

(voice-over): In some parts of the state, foreclosures have reached crisis proportions. In Lake County, Indiana, there have been nearly 1,300 foreclosures so far this year, on pace to break last year's record.

DOUGLAS DUNCAN, MORTGAGE BANKERS ASSASSIN: The most important factor in foreclosures is always employment. And the structural changes that we've seen affecting states with a high manufacturing component has been the biggest factor in their unemployment.

RODGERS: Foreclosure rates have stabilized nationwide, but some question whether that will continue because more than half the nation's mortgages are new, written in the past three years, as homeowners rushed to refinance at low interest rates.

JAY NEVELOFF, KRAMER LEVIN: They were also taking extra money out of their home so they had money to pay for education, to buy things, to fix up the house, to buy a new car.

RODGERS: In other words, it isn't yet clear whether homeowners took on too much debt that could come back to haunt them.

Ceci Rodgers for CNN Financial News, Maryville, Indiana.

(END VIDEO TAPE)

COSTELLO: Your news, money, weather and sports.

It's 5:19 Eastern. Here's what's all new this morning.

Two downed Russian airliners may have been crashed by terrorists. That's the theory intelligence experts are going on right now. Roughly 90 people are feared dead in those crashes. U.S. air strikes not letting up in Fallujah this morning. The new strikes are a response to attacks on Marines. U.S. forces also used tanks and artillery on a number of Iraqi militant positions.

In money news, Federal Reserve Chairman Alan Greenspan says the economic recovery has become both stronger and more sustainable over the past year. He'll speak again on Friday. Investors will look for clues on how quickly interest rates will rise.

In culture, from our gross and disgusting file, the Dave Matthews Band is being sued for $70,000. Why? Well, the State of Illinois says the band's bus driver dumped 800 pounds of liquid human waste into the Chicago River, directly onto a boat crowded with 100 tourists.

In sports, Iraq's Olympic version of the dream team will not be playing for the gold. Paraguay beat Iraq 3-1 last night in soccer. Still, Iraq could win bronze if it beats Italy on Friday -- Chad.

MYERS: Good morning, Carol.

They had some great boxing yesterday, too, I was watching. So nice stuff there.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Hot stories making news on the Web straight ahead.

Also, you say tomato, I say tomato, however you say it, it all equals one big mess. We'll pelt you with all the details ahead.

And our e-mail Question of the Day, Abu Ghraib -- should Rumsfeld testify in the courts-martial? E-mail us at daybreak@cnn.com.

(COMMERCIAL BREAK)

COSTELLO: It is time to check our Web clicks this morning. We're always interested about cnn.com and what you're clicking onto the most. And we have the top three stories for you now.

MYERS: Obviously, the Russian plane crash is the number one story.

COSTELLO: A really strange story.

MYERS: Yes.

COSTELLO: Two planes crash within four minutes.

MYERS: Right.

COSTELLO: One of them breaks apart in the air.

MYERS: Yes.

COSTELLO: They're now searching for bodies out there and we're going to talk to an expert later about this very strange story.

MYERS: As soon as Americans think about this or hear about this, they think al Qaeda. But actually, in fact, there are many other rebel groups that would not mind seeing this happen, as well.

COSTELLO: They don't know if it's terrorism yet.

MYERS: They do not.

COSTELLO: So we'll just have to see.

MYERS: That is absolutely correct.

COSTELLO: The second most clicked on story, Prince Charles accused of sex discrimination. Have you read this one?

MYERS: You know, I couldn't get it. It was a short little story. I didn't quite get what he's being accused of.

COSTELLO: And apparently some woman who worked as a secretary for Prince Charles has filed a complaint alleging sexual discrimination and unfair dismissal. So apparently he fired her and she's charging sex discrimination. So I'm sure that story will play out in the tabloids of London.

MYERS: "We will be contesting the complaint vigorously" is the official quote.

COSTELLO: From the royal palace.

And the third most clicked on story, it's about that Swift Boat Veterans for Truth. Apparently a lawyer for President Bush's reelection campaign disclosed that he's been providing legal advice for the veterans' group. He is directly related to President Bush, but he said he never told President Bush he was doing this and he never accepted any money from this group.

MYERS: Right.

COSTELLO: He's still deciding whether to charge them.

MYERS: The veterans literally asked him a question and he said well, I'm a lawyer, I'm not going to not answer it, and he answered the question for them so.

COSTELLO: So more hot coals on the fire.

MYERS: Yes.

COSTELLO: There you go.

Time for our DAYBREAK "Eye Opener."

Meet Wanda. Here's Wanda. She's an Asian elephant diagnosed with arthritis back in 1998.

MYERS: Hot tub.

COSTELLO: A worker at the Royal Oak, Michigan zoo decided Wanda could use some help from a physical therapist. So for the past few weeks, Wanda's been going through a routine of whirlpool therapy and stretching exercises. So it's a whirlpool, not a hot tub.

MYERS: Well, there was a picture of it there.

COSTELLO: Nothing like a day at the spa, though, huh?

All right, you're hired! The city of Irving, Texas has a problem with rats chewing on tax records and other important papers, so they're looking at some potential candidates to fill the job of mouse catcher. Applicants must have that steely look and keen hunting instincts. That little kitty was tops on the list.

MYERS: He was a cute little guy.

COSTELLO: If you ever go to Spain, try this out.

MYERS: No!

COSTELLO: It's the last tomatina, the tomato festival in Banul. A bunch of folks get together and pelt each other with tomatoes. It starts today, Chad. Just don't wear anything you don't want stained.

Here's what's all new in the next half hour of DAYBREAK.

They've been the sweethearts of the Summer Games. But is all that glitters gold for the Iraqi dream team? We'll take you live to Athens later this hour.

And while the presidential candidates say they'll do more to help working men and women in this country, what exactly does more mean for the middle class? We'll have that story.

But first, a developing story out of Russia. Two airliners crash within seconds of each other. Coincidence or terrorism? We'll get you the latest ahead.

This is DAYBREAK for Wednesday.

(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