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CNN Live At Daybreak

Latest Developments at Republican Convention in New York City; Talking With Delegates Visiting Ground Zero

Aired August 31, 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: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, the first lady and a movie star turned governor -- they are the featured speakers in New York today on day two of the Republican national convention. Laura Bush and California Governor Arnold Schwarzenegger will address the delegates.

Overseas, Islamic kidnappers of two French journalists in Iraq have given the French government 24 more hours before the hostages are killed. The kidnappers are demanding that France reverse its ban on head scarves in schools

A moderate message from a radical Iraqi cleric. Muqtada al-Sadr is urging his followers to stop fighting U.S. and Iraqi forces. An aide says the cleric also plans to join the political process.

U.N. chief Kofi Annan probably won't get good news today when he's briefed on the latest from Sudan. A U.N. deadline to ease the ethnic fighting in Darfur is expiring, but not much has changed.

Back in the States, cars literally floating down streets. That is the scene in the Richmond, Virginia area, which has been soaked by the remains of tropical storm Gaston. A state of emergency now in effect -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Was there a guy hanging onto that car, Carol?

COSTELLO: That's a scary picture, isn't it?

MYERS: Did you see it?

COSTELLO: He's OK, though.

MYERS: He was hanging onto that fender. Oh, my gosh.

Anyway, yes, almost six inches of rain yesterday in downtown Richmond, at the airport, and 6.68 officially in Henrico County. And some of the radar estimates had even more than that.

(WEATHER REPORT)

COSTELLO: You were talking about that guy with his car in Richmond, Virginia? MYERS: Yes.

COSTELLO: Let's take another look. He's actually walking beside his car, seemingly directing -- don't do that. That's not good.

MYERS: I couldn't see him the first time. I saw this video like at 5:00. I didn't see him because he blended in with the concrete.

COSTELLO: Oh my goodness, that car could crash him into that wall.

MYERS: Well, you never want to be in that situation anyway. Don't drive into water.

COSTELLO: Yes, and if you do, get out of the car and get away from your vehicle. Get away. But like I said, he's OK this morning.

MYERS: I guess he was thinking like a boat, stay with the boat, I guess. I don't know.

COSTELLO: Oh my goodness.

MYERS: Wow!

COSTELLO: Let's talk politics now. John Kerry is taking some hits at the Republican national convention. Former New York Mayor Rudi Giuliani blasted Kerry's voting record last night. He says President Bush has stayed rock solid in his decisions, but that Senator Kerry has been less than solid.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, FORMER NEW YORK MAYOR: This is not a personal criticism of John Kerry. I respect him for his service to our nation. But it's important and critical to see the contrast in approach between these two men. President Bush, a leader who's willing to stick with difficult decisions, even as public opinion shifts and goes back and forth; and John Kerry, who's record in elected office suggests a man who changes his position even on important issues.

(END VIDEO CLIP)

COSTELLO: So, Mayor Giuliani played the part of bad cop. Senator John McCain played good cop, except when it came to Michael Moore. Yes, that Michael Moore. He was in Madison Square Garden on the first night of the convention.

Let's head live to New York now and our correspondent Bob Franken -- Bob, it was what you might call a moment.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, it is a moment. This has been a campaign full of moments. Michael Moore, of course, the filmmaker of "Fahrenheit 911," got into the hall, was in the press section, was taunting, as a matter of fact, as John McCain spoke in defense of President Bush's decision, saying it was the right decision to go into Iraq. (BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: Our choice wasn't between a benign status quo and the bloodshed of war. It was between war and a graver threat. Don't let anyone tell you otherwise, not our political opponents, not -- and certainly not, and certainly not a disingenuous filmmaker who would have us believe...

(BOOING FROM THE CROWD)

MCCAIN: Who would have us believe...

(END VIDEO CLIP)

FRANKEN: Trust me when I tell you, Carol, this is not going to be a touchy feely campaign.

COSTELLO: No. And, you know, tomorrow -- or, excuse me -- tonight the theme is about compassion. So you just want -- Laura Bush is going to speak, Arnold Schwarzenegger is going to speak. So you just wonder if more Republicans are going to go on the attack, too, tonight.

FRANKEN: Well, compassion is going to be a difficult theme to sustain given what are really bitter feelings in this political campaign. The speaker, Arnold Schwarzenegger tonight, First Lady Laura Bush, and whatever extracurricular activity occurs inside the hall, and, of course, outside.

COSTELLO: And just to inform our viewers, Michael Moore was there. He's writing for "USA Today." In fact, he has an article in the "USA Today" newspaper this morning.

Bob Franken live from New York.

Thank you.

The convention has had its share of protests and not all of them stayed peaceful. Take a look.

Oh, police scuffled with protesters near the convention site last night. One plainclothes detective got stomped and kicked. Police are still looking for the man who did it. The violence flared as police pushed demonstrators away from the site.

Inside Madison Square Garden, some delegates have been sporting Band-Aids, but not because they've been hurt. The Band-Aids have Purple Hearts on them, a dis of Senator John Kerry's war record.

But at least one Democrat, Charles Rangel of New York, says the Band-Aids send the wrong message.

(BEGIN VIDEO CLIP)

REP. CHARLES RANGEL (D), NEW YORK: I just hope that the president and the Republican leaders distance themselves from this and find some way to be critical of those people who have been so insensitive to those veterans who found themselves in harm's way. It's an insult to wounded veterans, but it's even an insult for those who never made it. It's a terrible thing to do.

(END VIDEO CLIP)

COSTELLO: The group Swift Boat Veterans for Truth has stirred controversy by accusing John Kerry of lying to win combat decorations in Vietnam, including the Purple Heart.

If you want to feel the pulse of the convention floor, check out cnn.com/blog. Our Web correspondents are tracking developments at Madison Square Garden for you. Some interesting stuff on there.

A former aide to New Jersey Governor James McGreevey has decided not to sue him for sexual harassment. Golan Cipel is in seclusion with his family in Israel. But his lawyers say Cipel feels McGreevey basically admitted to wrongdoing when he announced his resignation.

(BEGIN VIDEO CLIP)

RACHEL YOSEVITZ, GOLAN CIPEL'S ATTORNEY: He was prepared to file a lawsuit from the onset and it is only because of the governor's resignation and of the truth has come out that he has asked me not to commence the action for sexual harassment, where the State of New Jersey would have been a party. Mr. Cipel has no desire to have the taxpayers of New Jersey pay for Mr. McGreevey's reprehensible conduct.

(END VIDEO CLIP)

COSTELLO: McGreevey, who is married, announced early this month he had a homosexual affair. Cipel insists he was pressured and is not gay.

Another possible gay sex scandal is making news across America this morning. Virginia Congressman Ed Schrock has dropped his bid for a third term after allegations surfaced that he called a gay phone sex line. The conservative Republican had been a leader in the push for an amendment banning same-sex marriage.

William Kennedy Smith has quit his job in order to deal with sexual assault allegations. A former personal assistant filed a complaint stating that Smith sexually assaulted her more than four years ago. The Kennedy nephew was chairman and president of the Center for International Rehabilitation.

More potential jurors are expected to be questioned today as part of the Kobe Bryant trial. Individual interviews were conducted for 10 hours on day one of the selection process. Among other things, the potential jurors have been asked about their opinion on interracial relationships. Opening statements are expected to begin September 7.

Moore to come on DAYBREAK, as in Michael Moore. And a moment a lot of Republicans have been waiting for.

And from phone numbers to hotel destinations, the Secret Service is investigating how some sensitive convention details got out.

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

(COMMERCIAL BREAK)

COSTELLO: U.S. markets will open down this morning after a day of extremely light trading.

The Dow closed down 72 points.

The Nasdaq fell 25 1/2 points.

The S&P 500 down just about 8 1/2 points.

Your news, money, weather and sports.

It's 6:12 Eastern.

Here's what's all new this morning.

Private Lynndie England will be back in a military courtroom today at Fort Bragg, North Carolina. The hearing will determine whether she'll be court-martialed for abusing Iraqi detainees at a Baghdad prison. Yesterday, a defense witness testified it was military intelligence, not guards, behind the abuse.

Sexual assaults in the Air Force are a much greater problem than originally feared. A new study of 85 Air Force installations found widespread abuses and the lack of proper training to handle the incidents.

In money news, it's getting cheaper to fill the tank these days. Have you noticed? A government survey says gas prices have dropped to their lowest levels in four months. But the average cost is still $0.10 higher than it was a year ago. That's why you haven't noticed.

In culture, the final album from the legendary Ray Charles hits store shelves today. "Genius Loves Company" includes collaborations with other giants like Elton John, Willie Nelson and B.B. King.

In sports, NASCAR driver Rusty Wallace announced plans to put it in park for good. The 48-year-old former champ says he'll drive for one more year before setting his sights on becoming a full-time race team owner. And he'll probably be successful at that, too, Chad.

MYERS: Yes. The Penskis will have someone to deal with then.

Good morning, everybody.

(WEATHER REPORT)

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

On tap tonight at the Republican national convention, California Governor Arnold Schwarzenegger. The theme -- the people of compassion.

To talk about the RNC, let's head live to New York and Vaughn Ververs, the managing editor of "National Journal's Hotline."

He joins us on the phone.

Good morning.

VAUGHN VERVERS, "HOTLINE" MANAGING EDITOR: Good morning.

COSTELLO: So, overall, what did you think?

VERVERS: Of the convention last night? I was very interested. You know, one of the things that struck me is that the Bush campaign, the president and the administration have long tried to make the war in Iraq synonymous with the war on terror. I thought you saw a very interesting melding together of those two last night from John McCain and Rudy Giuliani in particular, really combining Iraq as part of the war on terror.

That's a very important thing for their campaign.

COSTELLO: Yes, funny you should say that. We have a sound bite all ready to go from John McCain.

Let's listen.

(BEGIN VIDEO CLIP)

MCCAIN: However just the cause, we should mourn for all that is lost when war claims its wages from us. But there is no avoiding this war. We tried that and our reluctance cost us dearly.

(END VIDEO CLIP)

COSTELLO: Did he make the case for going to war with Iraq, as in make the case that America should have done it?

VERVERS: Well, John McCain and Rudy Giuliani have both been two of the best surrogates for the Bush campaign on that position. John McCain, where he's disagreed with the president on many, many other things. They've had somewhat of an interesting relationship for the last four years. They really have not parted on this issue at all. And I think it was very effective to have McCain and Giuliani delivering that message.

Tonight, we're going to get a little bit of a different look with Arnold Schwarzenegger. He's not going to be emphasizing the war on terror and 9/11 so much as he is some other issues. But last night, I think, was very effective for the Bush campaign.

COSTELLO: Well, I just wonder tonight who's going to play the part of attack dog, because it certainly was Rudy Giuliani.

Let's listen to what he had to say last night.

(BEGIN VIDEO CLIP)

GIULIANI: Frankly, I believed then and I believe now that Saddam Hussein, who supported global terrorism, slaughtered thousands and thousands of his own people, permitted horrific acts of atrocities against women and used weapons of mass destruction, he was himself a weapon of mass destruction.

(END VIDEO CLIP)

COSTELLO: He turned Saddam Hussein himself into a weapon of mass destruction. But really the bulk of his speech, he kind of portrayed John Kerry as a flip flopper, not kind of, he actually did.

VERVERS: Well, and he was very careful about how he went about that, as well. He was, he went out of his way to say he honored and praised John Kerry's service to the country, but then went on the attack against him. And the Republicans have been very careful about how they're making their criticisms. They're using a lot of humor to do it and they're making, prefacing some of their attacks with those kinds of statements.

So they're not -- they're trying not to come off as just going after John Kerry, but also not shying away from the criticism either.

COSTELLO: Laura Bush is supposed to speak tonight.

What do you think her message will be about her husband?

VERVERS: She's going to really play up the personal side of President Bush, the side that she says that we don't, the media doesn't portray very often, that people don't see enough of. It's going to be the loving husband, the kind, compassionate person that the president is in her eyes. It's really going to be just a personal testimony to President Bush. And you're not going to hear a lot of policy out of Laura Bush tonight.

COSTELLO: I don't think so, either.

Vaughn Ververs, the managing editor of "National Journal's Hotline," joining us live from New York this morning.

Thank you.

Much more to come on DAYBREAK.

Stick around.

(COMMERCIAL BREAK)

COSTELLO: We're looking at some Republican delegate fashion for you.

MYERS: They've come a long way since those old Styrofoam hats, huh?

COSTELLO: Definitely so. But, you know, some convention delegates are finding themselves in the spotlight too much.

MYERS: Yes.

COSTELLO: Personal information about many of the delegates has popped up on the Internet. The Secret Service is looking into it, fearing the delegates might get hassled. The Web posting includes a message that the delegates are not welcome in New York City. In fact, they're posting the delegates' phone numbers, where they live, their names and, as you might expect, the delegates aren't liking that very much.

MYERS: No, and even going as far as saying do whatever you can to make these people uncomfortable in the letter of the posting. And that's actually probably a Web Question of the Day some day. If someone makes a threatening e-mail, sends it to somebody, should the U.S. be able to track down who sent that? Because now there's a big ACLU thing, no, you can't figure that out, we don't want to give you that information, we don't want to tell you who did it. Yes we want it. They've got a subpoena. Oh, my.

COSTELLO: That is a question for another day. We have complicated matters to attend to today.

MYERS: Yikes!

COSTELLO: The convention hoopla is all over New York City, but at one special site, people are putting politics aside.

Bruce Morton accompanied some of the Republican delegates as they visited Ground Zero.

(BEGIN VIDEO TAPE)

BRUCE MORTON, CNN CORRESPONDENT (voice-over): People come every day, of course. They stare. They wonder. It is a very American place, Ground Zero.

This week, some of the visitors are attending the Republican National Convention. But here it's not about politics. It's about paying tribute.

SPENCER STOKES, UTAH DELEGATE: A very reverent feeling for all the people who lost their lives here on September 11. It's -- to me it's like Arlington Cemetery in the middle of a bustling city.

CARLENE WALKER, UTAH STATE SENATOR: It's very touching to me. It really hits home. But I have had people say, "Well, how can you even come back and look here? How can you even come back to New York?"

And I realize that we let the terrorists win if we are fearful.

RON WAIT, ILLINOIS STATE REPRESENTATIVE: It's an awesome sight to see it on TV and then to be here in person. I mean, it just takes your heart back to, you know, what happened here.

MORTON: Is there a lesson, a moral in this place?

DAVE SYLVERSON, ILLINOIS DELEGATE: The moral story is that we need to be strong on defense. We need to know who our friends are and who our enemies are.

SCOTT BORGEMENKE, OHIO POLITICAL CONSULTANT: I think the lesson is that we always have to be reflective of history, but we have to think forward, though. We can't just stop because of bad things that have happened to us. And that's it. I'm all choked up about it.

MORTON: Some mourn, some weep, some pray.

BARBARA ORTEGA, CALIFORNIA DELEGATION GUEST: You see what was here in pictures and then you come see what is now no more and it's very emotional.

VALERIE GALLAGHER, ILLINOIS DELEGATION GUEST: Time for reflection, to reflect on all that is what we stand for and what these people stood for, to come over and say thank you, thank you to the men and the women who were trying to save so many. And to make sure that we restore everything for them.

ORTEGA: We're making sure we say thank you to every policeman on the corner this week.

MORTON: They come, they look and think long thoughts. And an old man, as he often does in this place, plays an old hymn.

Bruce Morton, CNN, Ground Zero.

(END VIDEO TAPE)

(COMMERCIAL BREAK)

COSTELLO: Quiet and rainy now, but we will see what day two brings to the Republican national convention.

It is Tuesday, August 31.

This is DAYBREAK.

And good morning to you.

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

Now in the news, this is day two of the Republican national convention. They're praising President Bush as a strong leader, particularly in the war on terrorism. First Lady Laura Bush and California Governor Arnold Schwarzenegger will be tonight's big speakers.

Former Yugoslavian President Slobodan Milosevic has begun his over statement at his war crimes tribunal in the Hague. He's accused of masterminding ethnic cleansing in the Balkans and is the first former head of state to stand trial before the World Court. In Scott Peterson's trial back here in the States, defense attorneys are trying to raise doubts about the prosecution's time line. The defense says Laci Peterson may have used her home computer after the time police say her husband killed her.

And just a short time ago, Israeli Prime Minister Ariel Sharon gave his party a timetable for legislation that would lead to the withdrawal of troops and settlers from Gaza. He says the legislation will go before his cabinet two weeks from today -- good morning, Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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 31, 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: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, the first lady and a movie star turned governor -- they are the featured speakers in New York today on day two of the Republican national convention. Laura Bush and California Governor Arnold Schwarzenegger will address the delegates.

Overseas, Islamic kidnappers of two French journalists in Iraq have given the French government 24 more hours before the hostages are killed. The kidnappers are demanding that France reverse its ban on head scarves in schools

A moderate message from a radical Iraqi cleric. Muqtada al-Sadr is urging his followers to stop fighting U.S. and Iraqi forces. An aide says the cleric also plans to join the political process.

U.N. chief Kofi Annan probably won't get good news today when he's briefed on the latest from Sudan. A U.N. deadline to ease the ethnic fighting in Darfur is expiring, but not much has changed.

Back in the States, cars literally floating down streets. That is the scene in the Richmond, Virginia area, which has been soaked by the remains of tropical storm Gaston. A state of emergency now in effect -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Was there a guy hanging onto that car, Carol?

COSTELLO: That's a scary picture, isn't it?

MYERS: Did you see it?

COSTELLO: He's OK, though.

MYERS: He was hanging onto that fender. Oh, my gosh.

Anyway, yes, almost six inches of rain yesterday in downtown Richmond, at the airport, and 6.68 officially in Henrico County. And some of the radar estimates had even more than that.

(WEATHER REPORT)

COSTELLO: You were talking about that guy with his car in Richmond, Virginia? MYERS: Yes.

COSTELLO: Let's take another look. He's actually walking beside his car, seemingly directing -- don't do that. That's not good.

MYERS: I couldn't see him the first time. I saw this video like at 5:00. I didn't see him because he blended in with the concrete.

COSTELLO: Oh my goodness, that car could crash him into that wall.

MYERS: Well, you never want to be in that situation anyway. Don't drive into water.

COSTELLO: Yes, and if you do, get out of the car and get away from your vehicle. Get away. But like I said, he's OK this morning.

MYERS: I guess he was thinking like a boat, stay with the boat, I guess. I don't know.

COSTELLO: Oh my goodness.

MYERS: Wow!

COSTELLO: Let's talk politics now. John Kerry is taking some hits at the Republican national convention. Former New York Mayor Rudi Giuliani blasted Kerry's voting record last night. He says President Bush has stayed rock solid in his decisions, but that Senator Kerry has been less than solid.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, FORMER NEW YORK MAYOR: This is not a personal criticism of John Kerry. I respect him for his service to our nation. But it's important and critical to see the contrast in approach between these two men. President Bush, a leader who's willing to stick with difficult decisions, even as public opinion shifts and goes back and forth; and John Kerry, who's record in elected office suggests a man who changes his position even on important issues.

(END VIDEO CLIP)

COSTELLO: So, Mayor Giuliani played the part of bad cop. Senator John McCain played good cop, except when it came to Michael Moore. Yes, that Michael Moore. He was in Madison Square Garden on the first night of the convention.

Let's head live to New York now and our correspondent Bob Franken -- Bob, it was what you might call a moment.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, it is a moment. This has been a campaign full of moments. Michael Moore, of course, the filmmaker of "Fahrenheit 911," got into the hall, was in the press section, was taunting, as a matter of fact, as John McCain spoke in defense of President Bush's decision, saying it was the right decision to go into Iraq. (BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: Our choice wasn't between a benign status quo and the bloodshed of war. It was between war and a graver threat. Don't let anyone tell you otherwise, not our political opponents, not -- and certainly not, and certainly not a disingenuous filmmaker who would have us believe...

(BOOING FROM THE CROWD)

MCCAIN: Who would have us believe...

(END VIDEO CLIP)

FRANKEN: Trust me when I tell you, Carol, this is not going to be a touchy feely campaign.

COSTELLO: No. And, you know, tomorrow -- or, excuse me -- tonight the theme is about compassion. So you just want -- Laura Bush is going to speak, Arnold Schwarzenegger is going to speak. So you just wonder if more Republicans are going to go on the attack, too, tonight.

FRANKEN: Well, compassion is going to be a difficult theme to sustain given what are really bitter feelings in this political campaign. The speaker, Arnold Schwarzenegger tonight, First Lady Laura Bush, and whatever extracurricular activity occurs inside the hall, and, of course, outside.

COSTELLO: And just to inform our viewers, Michael Moore was there. He's writing for "USA Today." In fact, he has an article in the "USA Today" newspaper this morning.

Bob Franken live from New York.

Thank you.

The convention has had its share of protests and not all of them stayed peaceful. Take a look.

Oh, police scuffled with protesters near the convention site last night. One plainclothes detective got stomped and kicked. Police are still looking for the man who did it. The violence flared as police pushed demonstrators away from the site.

Inside Madison Square Garden, some delegates have been sporting Band-Aids, but not because they've been hurt. The Band-Aids have Purple Hearts on them, a dis of Senator John Kerry's war record.

But at least one Democrat, Charles Rangel of New York, says the Band-Aids send the wrong message.

(BEGIN VIDEO CLIP)

REP. CHARLES RANGEL (D), NEW YORK: I just hope that the president and the Republican leaders distance themselves from this and find some way to be critical of those people who have been so insensitive to those veterans who found themselves in harm's way. It's an insult to wounded veterans, but it's even an insult for those who never made it. It's a terrible thing to do.

(END VIDEO CLIP)

COSTELLO: The group Swift Boat Veterans for Truth has stirred controversy by accusing John Kerry of lying to win combat decorations in Vietnam, including the Purple Heart.

If you want to feel the pulse of the convention floor, check out cnn.com/blog. Our Web correspondents are tracking developments at Madison Square Garden for you. Some interesting stuff on there.

A former aide to New Jersey Governor James McGreevey has decided not to sue him for sexual harassment. Golan Cipel is in seclusion with his family in Israel. But his lawyers say Cipel feels McGreevey basically admitted to wrongdoing when he announced his resignation.

(BEGIN VIDEO CLIP)

RACHEL YOSEVITZ, GOLAN CIPEL'S ATTORNEY: He was prepared to file a lawsuit from the onset and it is only because of the governor's resignation and of the truth has come out that he has asked me not to commence the action for sexual harassment, where the State of New Jersey would have been a party. Mr. Cipel has no desire to have the taxpayers of New Jersey pay for Mr. McGreevey's reprehensible conduct.

(END VIDEO CLIP)

COSTELLO: McGreevey, who is married, announced early this month he had a homosexual affair. Cipel insists he was pressured and is not gay.

Another possible gay sex scandal is making news across America this morning. Virginia Congressman Ed Schrock has dropped his bid for a third term after allegations surfaced that he called a gay phone sex line. The conservative Republican had been a leader in the push for an amendment banning same-sex marriage.

William Kennedy Smith has quit his job in order to deal with sexual assault allegations. A former personal assistant filed a complaint stating that Smith sexually assaulted her more than four years ago. The Kennedy nephew was chairman and president of the Center for International Rehabilitation.

More potential jurors are expected to be questioned today as part of the Kobe Bryant trial. Individual interviews were conducted for 10 hours on day one of the selection process. Among other things, the potential jurors have been asked about their opinion on interracial relationships. Opening statements are expected to begin September 7.

Moore to come on DAYBREAK, as in Michael Moore. And a moment a lot of Republicans have been waiting for.

And from phone numbers to hotel destinations, the Secret Service is investigating how some sensitive convention details got out.

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

(COMMERCIAL BREAK)

COSTELLO: U.S. markets will open down this morning after a day of extremely light trading.

The Dow closed down 72 points.

The Nasdaq fell 25 1/2 points.

The S&P 500 down just about 8 1/2 points.

Your news, money, weather and sports.

It's 6:12 Eastern.

Here's what's all new this morning.

Private Lynndie England will be back in a military courtroom today at Fort Bragg, North Carolina. The hearing will determine whether she'll be court-martialed for abusing Iraqi detainees at a Baghdad prison. Yesterday, a defense witness testified it was military intelligence, not guards, behind the abuse.

Sexual assaults in the Air Force are a much greater problem than originally feared. A new study of 85 Air Force installations found widespread abuses and the lack of proper training to handle the incidents.

In money news, it's getting cheaper to fill the tank these days. Have you noticed? A government survey says gas prices have dropped to their lowest levels in four months. But the average cost is still $0.10 higher than it was a year ago. That's why you haven't noticed.

In culture, the final album from the legendary Ray Charles hits store shelves today. "Genius Loves Company" includes collaborations with other giants like Elton John, Willie Nelson and B.B. King.

In sports, NASCAR driver Rusty Wallace announced plans to put it in park for good. The 48-year-old former champ says he'll drive for one more year before setting his sights on becoming a full-time race team owner. And he'll probably be successful at that, too, Chad.

MYERS: Yes. The Penskis will have someone to deal with then.

Good morning, everybody.

(WEATHER REPORT)

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

On tap tonight at the Republican national convention, California Governor Arnold Schwarzenegger. The theme -- the people of compassion.

To talk about the RNC, let's head live to New York and Vaughn Ververs, the managing editor of "National Journal's Hotline."

He joins us on the phone.

Good morning.

VAUGHN VERVERS, "HOTLINE" MANAGING EDITOR: Good morning.

COSTELLO: So, overall, what did you think?

VERVERS: Of the convention last night? I was very interested. You know, one of the things that struck me is that the Bush campaign, the president and the administration have long tried to make the war in Iraq synonymous with the war on terror. I thought you saw a very interesting melding together of those two last night from John McCain and Rudy Giuliani in particular, really combining Iraq as part of the war on terror.

That's a very important thing for their campaign.

COSTELLO: Yes, funny you should say that. We have a sound bite all ready to go from John McCain.

Let's listen.

(BEGIN VIDEO CLIP)

MCCAIN: However just the cause, we should mourn for all that is lost when war claims its wages from us. But there is no avoiding this war. We tried that and our reluctance cost us dearly.

(END VIDEO CLIP)

COSTELLO: Did he make the case for going to war with Iraq, as in make the case that America should have done it?

VERVERS: Well, John McCain and Rudy Giuliani have both been two of the best surrogates for the Bush campaign on that position. John McCain, where he's disagreed with the president on many, many other things. They've had somewhat of an interesting relationship for the last four years. They really have not parted on this issue at all. And I think it was very effective to have McCain and Giuliani delivering that message.

Tonight, we're going to get a little bit of a different look with Arnold Schwarzenegger. He's not going to be emphasizing the war on terror and 9/11 so much as he is some other issues. But last night, I think, was very effective for the Bush campaign.

COSTELLO: Well, I just wonder tonight who's going to play the part of attack dog, because it certainly was Rudy Giuliani.

Let's listen to what he had to say last night.

(BEGIN VIDEO CLIP)

GIULIANI: Frankly, I believed then and I believe now that Saddam Hussein, who supported global terrorism, slaughtered thousands and thousands of his own people, permitted horrific acts of atrocities against women and used weapons of mass destruction, he was himself a weapon of mass destruction.

(END VIDEO CLIP)

COSTELLO: He turned Saddam Hussein himself into a weapon of mass destruction. But really the bulk of his speech, he kind of portrayed John Kerry as a flip flopper, not kind of, he actually did.

VERVERS: Well, and he was very careful about how he went about that, as well. He was, he went out of his way to say he honored and praised John Kerry's service to the country, but then went on the attack against him. And the Republicans have been very careful about how they're making their criticisms. They're using a lot of humor to do it and they're making, prefacing some of their attacks with those kinds of statements.

So they're not -- they're trying not to come off as just going after John Kerry, but also not shying away from the criticism either.

COSTELLO: Laura Bush is supposed to speak tonight.

What do you think her message will be about her husband?

VERVERS: She's going to really play up the personal side of President Bush, the side that she says that we don't, the media doesn't portray very often, that people don't see enough of. It's going to be the loving husband, the kind, compassionate person that the president is in her eyes. It's really going to be just a personal testimony to President Bush. And you're not going to hear a lot of policy out of Laura Bush tonight.

COSTELLO: I don't think so, either.

Vaughn Ververs, the managing editor of "National Journal's Hotline," joining us live from New York this morning.

Thank you.

Much more to come on DAYBREAK.

Stick around.

(COMMERCIAL BREAK)

COSTELLO: We're looking at some Republican delegate fashion for you.

MYERS: They've come a long way since those old Styrofoam hats, huh?

COSTELLO: Definitely so. But, you know, some convention delegates are finding themselves in the spotlight too much.

MYERS: Yes.

COSTELLO: Personal information about many of the delegates has popped up on the Internet. The Secret Service is looking into it, fearing the delegates might get hassled. The Web posting includes a message that the delegates are not welcome in New York City. In fact, they're posting the delegates' phone numbers, where they live, their names and, as you might expect, the delegates aren't liking that very much.

MYERS: No, and even going as far as saying do whatever you can to make these people uncomfortable in the letter of the posting. And that's actually probably a Web Question of the Day some day. If someone makes a threatening e-mail, sends it to somebody, should the U.S. be able to track down who sent that? Because now there's a big ACLU thing, no, you can't figure that out, we don't want to give you that information, we don't want to tell you who did it. Yes we want it. They've got a subpoena. Oh, my.

COSTELLO: That is a question for another day. We have complicated matters to attend to today.

MYERS: Yikes!

COSTELLO: The convention hoopla is all over New York City, but at one special site, people are putting politics aside.

Bruce Morton accompanied some of the Republican delegates as they visited Ground Zero.

(BEGIN VIDEO TAPE)

BRUCE MORTON, CNN CORRESPONDENT (voice-over): People come every day, of course. They stare. They wonder. It is a very American place, Ground Zero.

This week, some of the visitors are attending the Republican National Convention. But here it's not about politics. It's about paying tribute.

SPENCER STOKES, UTAH DELEGATE: A very reverent feeling for all the people who lost their lives here on September 11. It's -- to me it's like Arlington Cemetery in the middle of a bustling city.

CARLENE WALKER, UTAH STATE SENATOR: It's very touching to me. It really hits home. But I have had people say, "Well, how can you even come back and look here? How can you even come back to New York?"

And I realize that we let the terrorists win if we are fearful.

RON WAIT, ILLINOIS STATE REPRESENTATIVE: It's an awesome sight to see it on TV and then to be here in person. I mean, it just takes your heart back to, you know, what happened here.

MORTON: Is there a lesson, a moral in this place?

DAVE SYLVERSON, ILLINOIS DELEGATE: The moral story is that we need to be strong on defense. We need to know who our friends are and who our enemies are.

SCOTT BORGEMENKE, OHIO POLITICAL CONSULTANT: I think the lesson is that we always have to be reflective of history, but we have to think forward, though. We can't just stop because of bad things that have happened to us. And that's it. I'm all choked up about it.

MORTON: Some mourn, some weep, some pray.

BARBARA ORTEGA, CALIFORNIA DELEGATION GUEST: You see what was here in pictures and then you come see what is now no more and it's very emotional.

VALERIE GALLAGHER, ILLINOIS DELEGATION GUEST: Time for reflection, to reflect on all that is what we stand for and what these people stood for, to come over and say thank you, thank you to the men and the women who were trying to save so many. And to make sure that we restore everything for them.

ORTEGA: We're making sure we say thank you to every policeman on the corner this week.

MORTON: They come, they look and think long thoughts. And an old man, as he often does in this place, plays an old hymn.

Bruce Morton, CNN, Ground Zero.

(END VIDEO TAPE)

(COMMERCIAL BREAK)

COSTELLO: Quiet and rainy now, but we will see what day two brings to the Republican national convention.

It is Tuesday, August 31.

This is DAYBREAK.

And good morning to you.

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

Now in the news, this is day two of the Republican national convention. They're praising President Bush as a strong leader, particularly in the war on terrorism. First Lady Laura Bush and California Governor Arnold Schwarzenegger will be tonight's big speakers.

Former Yugoslavian President Slobodan Milosevic has begun his over statement at his war crimes tribunal in the Hague. He's accused of masterminding ethnic cleansing in the Balkans and is the first former head of state to stand trial before the World Court. In Scott Peterson's trial back here in the States, defense attorneys are trying to raise doubts about the prosecution's time line. The defense says Laci Peterson may have used her home computer after the time police say her husband killed her.

And just a short time ago, Israeli Prime Minister Ariel Sharon gave his party a timetable for legislation that would lead to the withdrawal of troops and settlers from Gaza. He says the legislation will go before his cabinet two weeks from today -- good morning, Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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