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CNN Live At Daybreak

Iraq Hostages; 'America's Voice'; 'Today's Talker'

Aired September 21, 2004 - 06:28   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: The clock is ticking in Iraq. Islamic hostage-takers say they will kill another hostage if their demands are not met; this, after word of a gruesome beheading.
CNN's Walter Rodgers has done extensive reporting from Iraq. He joins us live now from Baghdad.

Good morning.

WALTER RODGERS, CNN CORRESPONDENT: Hello, Carol.

It is not a good morning here. We are in the midst of another grisly countdown to perhaps another execution.

Today is the deadline set by Islamist militants for the decapitation of another Western hostage, either Jack Hensley, the American, or Kenneth John Bigley, the British subject, whom they hold.

Last night, the insurgents released a videotape that was extraordinarily graphic. Indeed, it showed the actual beheading of Eugene Armstrong, one of the three contractors, who was beheaded. Armstrong was indeed an American.

As they were reading his death sentence, the Islamist militants said they were carrying out God's law. Then they proceeded to cut off his head in full view of a television camera. You could hear the poor man screaming. If you heard those screams, you'll never forget them as long as you live.

Philip Bigley, the brother of the remaining British hostage, says he pretty much expects the same fate for his brother, Kenneth.

(BEGIN VIDEO CLIP)

PHILIP BIGLEY, BROTHER OF BRITISH HOSTAGE: We feel absolutely helpless. We do not have the power to save Ken's life. The death of the American hostage tonight has proved to us that if nothing is done, then the two remaining captives will die by the most horrific means.

The only person we can now beg to help us is the prime minister. Who else can we ask? There is nobody.

(END VIDEO CLIP)

RODGERS: The Islamist guerillas have so far rejected all pleas for mercy, for clemency, for compromise or negotiation. Their singular demand is that the West, the United States, the British and the Iraqis, the Interim Iraqi Government, must release all female Iraqi prisoners now held in jails here. It's already clear that is not going to happen.

The dye up here is very much cast again for yet another decapitation tonight -- Carol.

COSTELLO: Walter, has any of these terrorists been caught?

RODGERS: Well, of course, the most important terrorist here is Abu Musab Zarqawi. He is a Jordanian. The Americans believe he is the alleged mastermind of all of these terrorist plots here. Indeed, the group which kidnapped these three Western contractors last week is said to be affiliated with Zarqawi.

You may get the small fish. The big fish are still swimming around very loose here. They are increasing their pressure on the United States. They are increasing the violence in this country, car bombings. You know, no, the masterminds have not been caught, and it's only the small fish who appear to be -- Carol.

COSTELLO: Walter Rodgers live from Baghdad this morning.

About four hours from now, President Bush speaks to the U.N. General Assembly. He won't just be talking about Iraq and terrorism. The president plans to emphasize America's humanitarian efforts across the globe. He'll also defend his decision to go to war.

Bush's speech at the U.N. General Assembly is set for 10:30 Eastern this morning, 7:30 Pacific Time. CNN, of course, will bring that to you live.

As we count down to the November elections, some new poll numbers are out from one of the most hotly-contested swing states.

Live to Princeton, New Jersey, and Gallup Poll editor-in-chief Frank Newport.

And you're going to start with Iowa this morning, Frank.

FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Indeed, Carol. You can't get much more hotly-contested than that -- at least in 2000. Gore finally won Iowa, but if you look in the record books, it says the difference between Gore and Bush's vote was zero. It was that close. Gore just barely edged him out.

Well, we have had a change there, as we've seen in a lot of states. When we interviewed Iowans, likely voters, back in August, a slight lead for Kerry at that point. Now, we've shifted, and it has moved to a modest lead for George W. Bush in Iowa, 50 to 44, a 6-point lead. Not great, but nevertheless like we've seen in some other Midwestern states, such as Ohio and Wisconsin, we've had George Bush move into a lead among likely voters -- at least for the moment in Iowa -- Carol.

COSTELLO: And as far as why voters are choosing each candidate, did you do any rundown of reasons? NEWPORT: Indeed, this time, Carol, we did something unique. We asked voters an opened-ended question. We simply said, "Why are you voting for Bush," for those who are voting for Bush. And then we said for those who are voting for Kerry, "Why are you voting for Kerry?"

Here are the answers. We coded the answers into categories. No. 1, they liked the way Bush is doing. That's typical for an incumbent. Twenty-seven percent simply said that they wanted to referendum him on a good performance; 21 percent said terrorism and national security. Look at this theme echoing back to the people, a lot of leadership emphasis for Bush. Twenty percent of his supporters echoed that back. Then he's honest and moral and religious values down here. All of the Bush themes from the Bush supporters.

Why are people voting for Kerry? Well, one thing is he's not Bush. That comes through in the data. Eighteen percent of Kerry voters immediately said they just want Bush out of the White House. Then we have 13 percent who favor Kerry on Iraq, 13 percent who generally say Kerry's overall agenda, the economy, then another 11 percent, Carol, who say they're diehard Democrats, and that's why their voting for Kerry.

COSTELLO: Interesting. Let's talk about this CBS controversy now. How are people feeling about the media in light of what's happened at CBS?

NEWPORT: Well, interestingly, we were in the field last Monday through Wednesday with our annual update on how Americans feel about a lot of institutions, Carol, including the media. And that was not at the final (UNINTELLIGIBLE), as it were, of the CBS flap, of course, over the documents and Dan Rather. But nevertheless, it was kind of in the middle of it. Pretty bad numbers.

Look here, the key is the green number, only 9 percent of Americans have a great deal of confidence in the media to report the news accurately, 35 say fair. Put those two together, that's only 44 percent, down from the red bars, which was last year. That's the lowest we've seen in 11 times we've asked this question since 1972.

So, not a lot of confidence at this point from the public in the news media -- Carol.

COSTELLO: That really saddens me. Thank you, Frank Newport live in Princeton, New Jersey.

Home Depot is looking for a few good men and women. Our business report is coming your way next. We'll tell you just who they hope will report for duty.

Plus, the CBS-Bush document fallout. Perspective from the political right and the political left up next.

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

(COMMERCIAL BREAK) COSTELLO: Checking the overseas financial markets for you now.

Japan's Nikkei closes down just over 1 and a half points. In Europe, Britain's FTSE is trading up more than 19 points. France's CAC is now up 18 points.

It's time for a little more business buzz. Home Depot is on a hiring spree, and that could be very good news for veterans.

Carrie Lee is live at the Nasdaq Marketsite to tell us why.

Good morning.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol.

Well, Home Depot has some new hiring efforts. They plan to hire over 10,000 military veterans this year, and they're also recruiting spouses of military personnel. And if a service member is relocated by the military, then Home Depot is going to try to transfer the person's spouse to a store near the new community. Now, they're not guaranteeing a job in the new location, but doing what they can.

Overall, Home Depot workers can earn between $7 and $20 an hour, depending on their experience. Full and part-time employees are eligible for health coverage, although military members and their spouses receive full health coverage from the government.

Here's an interesting stat, Carol. Home Depot averages a new store opening every 48 hours.

COSTELLO: Wow!

LEE: So, a lot of possibilities for people looking for work at Home Depot.

COSTELLO: Just like Starbucks.

LEE: Yes, there you go. One is opening right around the corner from my apartment, as we speak.

COSTELLO: Lucky you.

LEE: Yes, it started construction at 3:30 this morning, in fact.

COSTELLO: Oh, well, you're up early.

LEE: Yes.

COSTELLO: Thank you, Carrie Lee, live from the Nasdaq Marketsite.

LEE: OK.

COSTELLO: To the business of news now. CBS is conducting an investigation into how possibly phony documents made their way on the air. You've heard about those documents by now. They allege President Bush did not meet his National Guard service requirements.

Anchorman Dan Rather conducted a rather surreal interview with the source of those documents.

(BEGIN VIDEO CLIP)

DAN RATHER, CBS NEWS ANCHOR: Have you forged anything?

LT. COL. BILL BURKETT (RET.), TEXAS NATIONAL GUARD: No, sir.

RATHER: Have you faked anything?

BURKETT: No, sir.

RATHER: But you did mislead us.

BURKETT: Yes, I misled you. Yes, I did.

RATHER: You used the word, "lie." You...

(END VIDEO CLIP)

COSTELLO: But CBS cannot authenticate those memos. That man, Bill Burkett, is a former lieutenant colonel in the National Guard and a longtime critic of President Bush and a Democrat.

That brings us to our hot talker of this morning, CBS and the "I'm sorry," because Dan Rather did apologize on the air for airing those documents.

From the left, Nancy Skinner, a radio talk show host. And from the right, Steve Malzberg, a talk show host at WABC Radio in New York.

Welcome to you both.

NANCY SKINNER, RADIO TALK SHOW HOST: Good morning, Carol.

STEVE MALZBERG, WABC RADIO TALK SHOW HOST: Good morning.

COSTELLO: Let's get right into the political heart of this matter. The White House is already intimating the Democrats were behind this mess. Conspiracy theory or truth, Nancy?

SKINNER: This is funny, Carol. The information -- this is the question news directors need to be asking themselves: Is this true? Did President Bush get suspended from flying because he missed his flight physical? That was first reported in "The Boston Globe" in 1999 and in many other sources since then.

Outside of this CBS thing, nobody is asking, is it true or not? President Bush has been giving this my-dog-ate-the-jumpsuit answer for years on this question. First, he said they weren't flying the planes that he flew anymore. That turned out to be not true. Then he said his doctor was in Houston.

He has prevaricated on this question so many times. And the media is getting caught in the road fog machine on this. Forget the chain of command at CBS. The AP reported that President Bush missed his Guard duty, and he should have been called up to active duty service, as did "U.S. News & World Report."

COSTELLO: OK, stop for a second.

SKINNER: Don't everyone focus on CBS!

COSTELLO: Stop for a second. Let Steve jump in here. I see him shaking his head.

MALZBERG: I mean, you know, Nancy, are you trying to have your candidate lose? As you said, this has been talked about for years. It goes back to the first governor's race that the president ran when he was running for governor of Texas. It's old news. Forget about it.

Now, let's talk about what's going on here. First of all, Dan Rather should resign, and so should any producer affiliated with that debacle over those documents.

Now, here's what happened: Burkett, the guy you saw Dan Rather interviewing there, he supplied the documents, but not originally. He claims he got them from somebody else, and that's what he lied about to Dan Rather. That's what Rather was saying, "You misled us." He said, "Yes." He made up apparently who gave it to him.

Now, why doesn't Rather tell us who he made up? Who did he say? What's the secret?

But, here's the deal. Joe Lockhart, the former Clinton spokesperson, who is now working for the Kerry campaign, called Burkett, the man that Dan Rather was interviewing, the man Rather got the documents from, called Burkett and agreed to talk to him as a precondition for Burkett giving CBS the documents. He also says he spoke to Max Cleland, who is, you know, the former senator from Georgia who is a big Kerry campaign employee.

What's going on here?

SKINNER: Steve, why aren't we asking...

MALZBERG: When did Kerry know it, and what did he know?

SKINNER: Why aren't we asking...

COSTELLO: Hold on a second. Nancy, go ahead. I just want to clear this up. Lockhart did speak to Burkett, but he said he spoke nothing about these documents to Burkett. We've got the official statement from Lockhart.

So, Nancy, go ahead.

SKINNER: Right. Burkett said that he just urged the Kerry campaign to turn up the heat on this thing. And, you know, look at the fairness of this issue in the media. When the Swift Boat guys, when their credibility came under fire, did everybody say they should fire all of the news directors that put John O'Neill on the air...

MALZBERG: What are you talking about?

SKINNER: ... and all of these other guys, when it turned out that their stories were completely...

(CROSSTALK)

MALZBERG: There's no comparison, Nancy.

SKINNER: Their own military records disputed what they were saying...

MALZBERG: Oh, come on!

SKINNER: ... and their own glowing assessment. It's unbelievable to me the different treatment that this CBS story versus the Swift Boat guys has had in the media.

MALZBERG: Nancy, that's the worst analogy I've ever heard.

SKINNER: And that's why Republicans are masters at propaganda.

MALZBERG: Keep trying.

SKINNER: And the media walks into it every -- each and every time.

MALZBERG: Never -- no analogy there whatsoever. The Swift Boat guys...

SKINNER: Sure there is.

MALZBERG: ... were veterans who stood up and said this is what I saw, this is what I did, this is what John Kerry did. They went on the record. This secret document is phony-baloney, which every other news media source knew, every other news...

SKINNER: Steve, let me ask you one question.

MALZBERG: ... knew they were phony but Dan Rather.

SKINNER: Did Bush get suspended...

COSTELLO: Wait.

SKINNER: Did Bush get...

COSTELLO: One at a time.

SKINNER: Did Bush get suspended from flying for refusal to take a flight physical?

MALZBERG: No, he did not get suspended.

SKINNER: Really? MALZBERG: He completed his National Guard duty.

SKINNER: He has never denied that!

MALZBERG: And he got an honorable discharge.

COSTELLO: Wait, hold on for a just a second. Steve, there are unanswered questions about President Bush's National Guard service. There really isn't any doubt about that.

MALZBERG: Well, then answer them. Go investigate them. It's been investigated for a decade. Was John Kerry in Cambodia, like he claimed on the floor of the Senate? He had it seared in his mind. Never there. What about the veterans who served with him and say he's lying.

SKINNER: This is about Bush. This is about Bush's record, and he has never answered these questions. The AP came out and said that he did not fulfill his Guard duty, that he signed a pledge saying that...

MALZBERG: Nobody cares, Nancy.

SKINNER: ... it is my responsibility to be assigned to another Reserve unit, and he never showed up in Boston.

MALZBERG: It's wrong. Nobody cares obviously.

COSTELLO: OK.

MALZBERG: Because Bush is leading...

COSTELLO: We're going to have to end it there. Ooh, this is a lively debate today. Thank you so much for joining us, Nancy Skinner and Steve Malzberg.

MALZBERG: You're welcome.

COSTELLO: Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

At least 500 people are dead in Haiti, and officials expect to find many more bodies. That's after Tropical Storm Jeanne flooded the nation last week.

An update on Marine Colonel Wassef Ali Hassoun. Military psychologists who have interviewed him say he was indeed held captive in Iraq. Hassoun first disappeared in Iraq on June 19, but resurfaced weeks later in Lebanon. He was originally listed as a deserter.

In money news, a record $280 billion lawsuit against cigarette makers goes to trial today. The federal government accuses the tobacco industry of lying for decades about the dangers of smoking.

In culture, rare behind-the-scenes footage is the focus for a new Crosby, Stills and Nash DVD set, set for release next month. The three DVD collection highlights dozens of live performances by the group.

In sports, with their win over the White Sox, the Minnesota Twins clinch their third straight American League Central Division title. The Twins and the St. Louis Cardinals are the only teams to earn spots in the post-season.

(WEATHER REPORT)

COSTELLO: Let's head live to New York City and check in with Bill and Heidi for a look at what's coming up on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol. Good morning to you.

HEIDI COLLINS, CNN ANCHOR: Good morning, Carol.

HEMMER: A lot of talk today at the U.N., the target is on New York City again, President Bush back there. Is it enemy territory for him? What are the expectations? A lot of questions here regarding Iraq. The national security advisor, the deputy advisor, Jim Wilkinson, will be my guest this morning at the top of the hour here.

COLLINS: Also, the CBS controversy, anchorman Dan Rather apologized last night on the "CBS Evening News." But is it too little too late? We're going to talk to the author of a new book that takes an inside look at "60 Minutes."

HEMMER: Also, the Scott Peterson trial.

COLLINS: Yes.

HEMMER: Is that still going on?

COLLINS: It is still going on.

HEMMER: From now until, like, 2006?

COLLINS: Four months.

HEMMER: There is a new theory, Carol, on Laci's disappearance. How effective was it? How effective is it for the jurors? We'll talk to the Jeff Toobin about that.

COLLINS: Yes, we will.

HEMMER: We'll have it all for you.

COLLINS: We have all kinds of stuff to talk about this morning.

COSTELLO: Oh, absolutely. It's been a busy morning. Thanks to you both.

COLLINS: We're not going to talk about the Vikings, though, at all. I just want to make that we make that really clear.

COSTELLO: You just remember...

HEMMER: They lost.

COSTELLO: You remember, Heidi, the Lions are 2-0.

COLLINS: Yes, I do remember that.

COSTELLO: They're coming on strong.

COLLINS: I vaguely remember that part. I can't hear you, Carol. Huh?

COSTELLO: I'll see you guys later.

HEMMER: Bye-bye.

COSTELLO: You know, they mentioned the Dan Rather controversy, and we've been soliciting e-mails from you all morning long. We've gotten a lot of e-mail on this question: Should Dan Rather resign?

"CBS made a mistake," says Robert from Rapid City, South Dakota. "This is clear. At least Dan Rather stepped forward publicly with honor and humility to admit the mistake."

We're going to read more of your e-mails when DAYBREAK continues.

(COMMERCIAL BREAK)

COSTELLO: There is another cruel deadline in Iraq. Release all women prisoners in Iraq or another hostage will be killed -- that's what the terrorists are saying this morning.

American Eugene Armstrong was beheaded on video by those Islamic militants. So, how to stop this, or can we?

Kenneth Pollack is our CNN security analyst. He joins us live this morning.

Good morning.

KEN POLLACK, CNN SECURITY ANALYST: Good morning, Carol. How are you?

COSTELLO: Oh, I'm fine. You know, the man who seems to be at the root of this terror is Abu Musab al-Zarqawi. Is it possible to find him?

POLLACK: The honest answer is, if we do, it will probably be the result of a lot of good intelligence and quite a bit of luck as well. He has eluded us for 18 months in Iraq. He moves around very quickly and very easily.

And we also have to keep in mind that while he is a troublesome character in Iraq, he is part of the problem, he is not anywhere near anything like the major culprit behind most of the violence inside Iraq. Even eliminating Abu Musab al-Zarqawi is not going to stop the insurgency or even these kinds of kidnappings and beheadings.

COSTELLO: So, who is behind most of the insurgency?

POLLACK: Unfortunately, the answer to that is that there is no single group, there is no single person. The problem that we face in Iraq today, Carol, is that we have got a full-blown insurgency there, and it spans a whole range of different communities inside of Iraq. There are Sunnis. There are Shia. There are religiously-motivated people. There are politically-motivated people.

There are all kinds of different groups, all of whom just have one thing in common: They oppose the United States, they oppose the interim government, and they're willing to use violence.

But this is the problem: This is a very large insurgency with roots in a variety of different communities. There is no single silver bullet answer that's going to solve the problem.

COSTELLO: Which I would expect would make it very difficult for the U.S. military. Let's talk again about these beheadings, though, because they're just so gruesome and so tragic.

The relatives of the British hostage today appealed to Tony Blair to help, to find some sort of compromise. He's not going to do that, is he?

POLLACK: I think it unlikely. I don't know Tony Blair. I don't know what he is thinking. But the British government has been very steadfast about its commitment to Iraq.

I was speaking to some Brits the other day, and the point that they were making is that, you know, the interesting thing about the debate, the difference between the debate in the United States and in Great Britain is that in the U.S., while both candidates continue to say we're committed to rebuilding Iraq, they also do talk about getting out at some point. When might we be able to get out? Will it be in a year? Will it be in five years? Will it be in 10 years?

In Britain, what these Brits pointed out is the Brits never talk about that. They simply talk about getting the job done. That seems to suggest that Tony Blair at the very least is committed for the long haul.

COSTELLO: And you say the long haul. Well, let's talk about the bottom line, since we don't have much more time. The bottom line: What can the U.S. military do to stop the insurgency problem in Iraq, and perhaps to stop these groups from beheading these hostages?

POLLACK: In all honesty, Carol, there is probably no way for the U.S. military to stop the general pattern of beheadings, at least not for a very long time. These are isolated incidents. It's almost impossible to defend every American and every foreigner present in Iraq.

As for solving the larger problem with the insurgency, that is what we need to do. We need to get at the root of those problems. The military can help. They are part of the solution, but they're only part of it.

The military has to establish security, and honestly they have not got the forces right now to do that. They need more Iraqis. They probably need more Americans to do it as well. They may need to take out a new strategy to do so.

But beyond that, it's about creating the security environment in which Iraq's economy and political system can rebuild itself, because only when you've got Iraqis really committed to reconstruction, because they are happy about their political and economic circumstances are you going to see large sectors of the population willing to help enforce security. And that's the way that you deal with these kinds of insurgencies.

COSTELLO: Ken Pollack from the Brookings Institute, our security analyst, thank you for joining DAYBREAK this morning.

POLLACK: Thank you, Carol.

COSTELLO: Your e-mail about the Dan Rather memo flap in just two minutes, and you have a lot to say.

But first, this is DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: A lot of e-mails about the Dan Rather controversy. I've just been, like, wading through them. So, we're going to quickly get to some of them.

This is from Jane from Bedford, Ohio. She says: "As a teacher, I talk to my students about biased reporting and the need to approach things with a fair and impartial view. I would never watch CBS for the news again. Rather must go."

CHAD MYERS, CNN METEOROLOGIST: From Ed in Texas: "Dan Rather and CBS should leave no stone unturned to find out the truth. You remember the truth."

COSTELLO: This is from Thomas from Honolulu. He says: "If George W. Bush resigns from misleading the United States into war, then Dan Rather might consider it as well."

MYERS: I enjoyed this one: "Dan Rather made an honest mistake and a sincere apology. Can you imagine the unemployment rate with doctors, judges, police officers and weathermen if they all had to resign for mistakes?"

COSTELLO: "AMERICAN MORNING" starts right now.

MYERS: See you tomorrow.

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Aired September 21, 2004 - 06:28   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The clock is ticking in Iraq. Islamic hostage-takers say they will kill another hostage if their demands are not met; this, after word of a gruesome beheading.
CNN's Walter Rodgers has done extensive reporting from Iraq. He joins us live now from Baghdad.

Good morning.

WALTER RODGERS, CNN CORRESPONDENT: Hello, Carol.

It is not a good morning here. We are in the midst of another grisly countdown to perhaps another execution.

Today is the deadline set by Islamist militants for the decapitation of another Western hostage, either Jack Hensley, the American, or Kenneth John Bigley, the British subject, whom they hold.

Last night, the insurgents released a videotape that was extraordinarily graphic. Indeed, it showed the actual beheading of Eugene Armstrong, one of the three contractors, who was beheaded. Armstrong was indeed an American.

As they were reading his death sentence, the Islamist militants said they were carrying out God's law. Then they proceeded to cut off his head in full view of a television camera. You could hear the poor man screaming. If you heard those screams, you'll never forget them as long as you live.

Philip Bigley, the brother of the remaining British hostage, says he pretty much expects the same fate for his brother, Kenneth.

(BEGIN VIDEO CLIP)

PHILIP BIGLEY, BROTHER OF BRITISH HOSTAGE: We feel absolutely helpless. We do not have the power to save Ken's life. The death of the American hostage tonight has proved to us that if nothing is done, then the two remaining captives will die by the most horrific means.

The only person we can now beg to help us is the prime minister. Who else can we ask? There is nobody.

(END VIDEO CLIP)

RODGERS: The Islamist guerillas have so far rejected all pleas for mercy, for clemency, for compromise or negotiation. Their singular demand is that the West, the United States, the British and the Iraqis, the Interim Iraqi Government, must release all female Iraqi prisoners now held in jails here. It's already clear that is not going to happen.

The dye up here is very much cast again for yet another decapitation tonight -- Carol.

COSTELLO: Walter, has any of these terrorists been caught?

RODGERS: Well, of course, the most important terrorist here is Abu Musab Zarqawi. He is a Jordanian. The Americans believe he is the alleged mastermind of all of these terrorist plots here. Indeed, the group which kidnapped these three Western contractors last week is said to be affiliated with Zarqawi.

You may get the small fish. The big fish are still swimming around very loose here. They are increasing their pressure on the United States. They are increasing the violence in this country, car bombings. You know, no, the masterminds have not been caught, and it's only the small fish who appear to be -- Carol.

COSTELLO: Walter Rodgers live from Baghdad this morning.

About four hours from now, President Bush speaks to the U.N. General Assembly. He won't just be talking about Iraq and terrorism. The president plans to emphasize America's humanitarian efforts across the globe. He'll also defend his decision to go to war.

Bush's speech at the U.N. General Assembly is set for 10:30 Eastern this morning, 7:30 Pacific Time. CNN, of course, will bring that to you live.

As we count down to the November elections, some new poll numbers are out from one of the most hotly-contested swing states.

Live to Princeton, New Jersey, and Gallup Poll editor-in-chief Frank Newport.

And you're going to start with Iowa this morning, Frank.

FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Indeed, Carol. You can't get much more hotly-contested than that -- at least in 2000. Gore finally won Iowa, but if you look in the record books, it says the difference between Gore and Bush's vote was zero. It was that close. Gore just barely edged him out.

Well, we have had a change there, as we've seen in a lot of states. When we interviewed Iowans, likely voters, back in August, a slight lead for Kerry at that point. Now, we've shifted, and it has moved to a modest lead for George W. Bush in Iowa, 50 to 44, a 6-point lead. Not great, but nevertheless like we've seen in some other Midwestern states, such as Ohio and Wisconsin, we've had George Bush move into a lead among likely voters -- at least for the moment in Iowa -- Carol.

COSTELLO: And as far as why voters are choosing each candidate, did you do any rundown of reasons? NEWPORT: Indeed, this time, Carol, we did something unique. We asked voters an opened-ended question. We simply said, "Why are you voting for Bush," for those who are voting for Bush. And then we said for those who are voting for Kerry, "Why are you voting for Kerry?"

Here are the answers. We coded the answers into categories. No. 1, they liked the way Bush is doing. That's typical for an incumbent. Twenty-seven percent simply said that they wanted to referendum him on a good performance; 21 percent said terrorism and national security. Look at this theme echoing back to the people, a lot of leadership emphasis for Bush. Twenty percent of his supporters echoed that back. Then he's honest and moral and religious values down here. All of the Bush themes from the Bush supporters.

Why are people voting for Kerry? Well, one thing is he's not Bush. That comes through in the data. Eighteen percent of Kerry voters immediately said they just want Bush out of the White House. Then we have 13 percent who favor Kerry on Iraq, 13 percent who generally say Kerry's overall agenda, the economy, then another 11 percent, Carol, who say they're diehard Democrats, and that's why their voting for Kerry.

COSTELLO: Interesting. Let's talk about this CBS controversy now. How are people feeling about the media in light of what's happened at CBS?

NEWPORT: Well, interestingly, we were in the field last Monday through Wednesday with our annual update on how Americans feel about a lot of institutions, Carol, including the media. And that was not at the final (UNINTELLIGIBLE), as it were, of the CBS flap, of course, over the documents and Dan Rather. But nevertheless, it was kind of in the middle of it. Pretty bad numbers.

Look here, the key is the green number, only 9 percent of Americans have a great deal of confidence in the media to report the news accurately, 35 say fair. Put those two together, that's only 44 percent, down from the red bars, which was last year. That's the lowest we've seen in 11 times we've asked this question since 1972.

So, not a lot of confidence at this point from the public in the news media -- Carol.

COSTELLO: That really saddens me. Thank you, Frank Newport live in Princeton, New Jersey.

Home Depot is looking for a few good men and women. Our business report is coming your way next. We'll tell you just who they hope will report for duty.

Plus, the CBS-Bush document fallout. Perspective from the political right and the political left up next.

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

(COMMERCIAL BREAK) COSTELLO: Checking the overseas financial markets for you now.

Japan's Nikkei closes down just over 1 and a half points. In Europe, Britain's FTSE is trading up more than 19 points. France's CAC is now up 18 points.

It's time for a little more business buzz. Home Depot is on a hiring spree, and that could be very good news for veterans.

Carrie Lee is live at the Nasdaq Marketsite to tell us why.

Good morning.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol.

Well, Home Depot has some new hiring efforts. They plan to hire over 10,000 military veterans this year, and they're also recruiting spouses of military personnel. And if a service member is relocated by the military, then Home Depot is going to try to transfer the person's spouse to a store near the new community. Now, they're not guaranteeing a job in the new location, but doing what they can.

Overall, Home Depot workers can earn between $7 and $20 an hour, depending on their experience. Full and part-time employees are eligible for health coverage, although military members and their spouses receive full health coverage from the government.

Here's an interesting stat, Carol. Home Depot averages a new store opening every 48 hours.

COSTELLO: Wow!

LEE: So, a lot of possibilities for people looking for work at Home Depot.

COSTELLO: Just like Starbucks.

LEE: Yes, there you go. One is opening right around the corner from my apartment, as we speak.

COSTELLO: Lucky you.

LEE: Yes, it started construction at 3:30 this morning, in fact.

COSTELLO: Oh, well, you're up early.

LEE: Yes.

COSTELLO: Thank you, Carrie Lee, live from the Nasdaq Marketsite.

LEE: OK.

COSTELLO: To the business of news now. CBS is conducting an investigation into how possibly phony documents made their way on the air. You've heard about those documents by now. They allege President Bush did not meet his National Guard service requirements.

Anchorman Dan Rather conducted a rather surreal interview with the source of those documents.

(BEGIN VIDEO CLIP)

DAN RATHER, CBS NEWS ANCHOR: Have you forged anything?

LT. COL. BILL BURKETT (RET.), TEXAS NATIONAL GUARD: No, sir.

RATHER: Have you faked anything?

BURKETT: No, sir.

RATHER: But you did mislead us.

BURKETT: Yes, I misled you. Yes, I did.

RATHER: You used the word, "lie." You...

(END VIDEO CLIP)

COSTELLO: But CBS cannot authenticate those memos. That man, Bill Burkett, is a former lieutenant colonel in the National Guard and a longtime critic of President Bush and a Democrat.

That brings us to our hot talker of this morning, CBS and the "I'm sorry," because Dan Rather did apologize on the air for airing those documents.

From the left, Nancy Skinner, a radio talk show host. And from the right, Steve Malzberg, a talk show host at WABC Radio in New York.

Welcome to you both.

NANCY SKINNER, RADIO TALK SHOW HOST: Good morning, Carol.

STEVE MALZBERG, WABC RADIO TALK SHOW HOST: Good morning.

COSTELLO: Let's get right into the political heart of this matter. The White House is already intimating the Democrats were behind this mess. Conspiracy theory or truth, Nancy?

SKINNER: This is funny, Carol. The information -- this is the question news directors need to be asking themselves: Is this true? Did President Bush get suspended from flying because he missed his flight physical? That was first reported in "The Boston Globe" in 1999 and in many other sources since then.

Outside of this CBS thing, nobody is asking, is it true or not? President Bush has been giving this my-dog-ate-the-jumpsuit answer for years on this question. First, he said they weren't flying the planes that he flew anymore. That turned out to be not true. Then he said his doctor was in Houston.

He has prevaricated on this question so many times. And the media is getting caught in the road fog machine on this. Forget the chain of command at CBS. The AP reported that President Bush missed his Guard duty, and he should have been called up to active duty service, as did "U.S. News & World Report."

COSTELLO: OK, stop for a second.

SKINNER: Don't everyone focus on CBS!

COSTELLO: Stop for a second. Let Steve jump in here. I see him shaking his head.

MALZBERG: I mean, you know, Nancy, are you trying to have your candidate lose? As you said, this has been talked about for years. It goes back to the first governor's race that the president ran when he was running for governor of Texas. It's old news. Forget about it.

Now, let's talk about what's going on here. First of all, Dan Rather should resign, and so should any producer affiliated with that debacle over those documents.

Now, here's what happened: Burkett, the guy you saw Dan Rather interviewing there, he supplied the documents, but not originally. He claims he got them from somebody else, and that's what he lied about to Dan Rather. That's what Rather was saying, "You misled us." He said, "Yes." He made up apparently who gave it to him.

Now, why doesn't Rather tell us who he made up? Who did he say? What's the secret?

But, here's the deal. Joe Lockhart, the former Clinton spokesperson, who is now working for the Kerry campaign, called Burkett, the man that Dan Rather was interviewing, the man Rather got the documents from, called Burkett and agreed to talk to him as a precondition for Burkett giving CBS the documents. He also says he spoke to Max Cleland, who is, you know, the former senator from Georgia who is a big Kerry campaign employee.

What's going on here?

SKINNER: Steve, why aren't we asking...

MALZBERG: When did Kerry know it, and what did he know?

SKINNER: Why aren't we asking...

COSTELLO: Hold on a second. Nancy, go ahead. I just want to clear this up. Lockhart did speak to Burkett, but he said he spoke nothing about these documents to Burkett. We've got the official statement from Lockhart.

So, Nancy, go ahead.

SKINNER: Right. Burkett said that he just urged the Kerry campaign to turn up the heat on this thing. And, you know, look at the fairness of this issue in the media. When the Swift Boat guys, when their credibility came under fire, did everybody say they should fire all of the news directors that put John O'Neill on the air...

MALZBERG: What are you talking about?

SKINNER: ... and all of these other guys, when it turned out that their stories were completely...

(CROSSTALK)

MALZBERG: There's no comparison, Nancy.

SKINNER: Their own military records disputed what they were saying...

MALZBERG: Oh, come on!

SKINNER: ... and their own glowing assessment. It's unbelievable to me the different treatment that this CBS story versus the Swift Boat guys has had in the media.

MALZBERG: Nancy, that's the worst analogy I've ever heard.

SKINNER: And that's why Republicans are masters at propaganda.

MALZBERG: Keep trying.

SKINNER: And the media walks into it every -- each and every time.

MALZBERG: Never -- no analogy there whatsoever. The Swift Boat guys...

SKINNER: Sure there is.

MALZBERG: ... were veterans who stood up and said this is what I saw, this is what I did, this is what John Kerry did. They went on the record. This secret document is phony-baloney, which every other news media source knew, every other news...

SKINNER: Steve, let me ask you one question.

MALZBERG: ... knew they were phony but Dan Rather.

SKINNER: Did Bush get suspended...

COSTELLO: Wait.

SKINNER: Did Bush get...

COSTELLO: One at a time.

SKINNER: Did Bush get suspended from flying for refusal to take a flight physical?

MALZBERG: No, he did not get suspended.

SKINNER: Really? MALZBERG: He completed his National Guard duty.

SKINNER: He has never denied that!

MALZBERG: And he got an honorable discharge.

COSTELLO: Wait, hold on for a just a second. Steve, there are unanswered questions about President Bush's National Guard service. There really isn't any doubt about that.

MALZBERG: Well, then answer them. Go investigate them. It's been investigated for a decade. Was John Kerry in Cambodia, like he claimed on the floor of the Senate? He had it seared in his mind. Never there. What about the veterans who served with him and say he's lying.

SKINNER: This is about Bush. This is about Bush's record, and he has never answered these questions. The AP came out and said that he did not fulfill his Guard duty, that he signed a pledge saying that...

MALZBERG: Nobody cares, Nancy.

SKINNER: ... it is my responsibility to be assigned to another Reserve unit, and he never showed up in Boston.

MALZBERG: It's wrong. Nobody cares obviously.

COSTELLO: OK.

MALZBERG: Because Bush is leading...

COSTELLO: We're going to have to end it there. Ooh, this is a lively debate today. Thank you so much for joining us, Nancy Skinner and Steve Malzberg.

MALZBERG: You're welcome.

COSTELLO: Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

At least 500 people are dead in Haiti, and officials expect to find many more bodies. That's after Tropical Storm Jeanne flooded the nation last week.

An update on Marine Colonel Wassef Ali Hassoun. Military psychologists who have interviewed him say he was indeed held captive in Iraq. Hassoun first disappeared in Iraq on June 19, but resurfaced weeks later in Lebanon. He was originally listed as a deserter.

In money news, a record $280 billion lawsuit against cigarette makers goes to trial today. The federal government accuses the tobacco industry of lying for decades about the dangers of smoking.

In culture, rare behind-the-scenes footage is the focus for a new Crosby, Stills and Nash DVD set, set for release next month. The three DVD collection highlights dozens of live performances by the group.

In sports, with their win over the White Sox, the Minnesota Twins clinch their third straight American League Central Division title. The Twins and the St. Louis Cardinals are the only teams to earn spots in the post-season.

(WEATHER REPORT)

COSTELLO: Let's head live to New York City and check in with Bill and Heidi for a look at what's coming up on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol. Good morning to you.

HEIDI COLLINS, CNN ANCHOR: Good morning, Carol.

HEMMER: A lot of talk today at the U.N., the target is on New York City again, President Bush back there. Is it enemy territory for him? What are the expectations? A lot of questions here regarding Iraq. The national security advisor, the deputy advisor, Jim Wilkinson, will be my guest this morning at the top of the hour here.

COLLINS: Also, the CBS controversy, anchorman Dan Rather apologized last night on the "CBS Evening News." But is it too little too late? We're going to talk to the author of a new book that takes an inside look at "60 Minutes."

HEMMER: Also, the Scott Peterson trial.

COLLINS: Yes.

HEMMER: Is that still going on?

COLLINS: It is still going on.

HEMMER: From now until, like, 2006?

COLLINS: Four months.

HEMMER: There is a new theory, Carol, on Laci's disappearance. How effective was it? How effective is it for the jurors? We'll talk to the Jeff Toobin about that.

COLLINS: Yes, we will.

HEMMER: We'll have it all for you.

COLLINS: We have all kinds of stuff to talk about this morning.

COSTELLO: Oh, absolutely. It's been a busy morning. Thanks to you both.

COLLINS: We're not going to talk about the Vikings, though, at all. I just want to make that we make that really clear.

COSTELLO: You just remember...

HEMMER: They lost.

COSTELLO: You remember, Heidi, the Lions are 2-0.

COLLINS: Yes, I do remember that.

COSTELLO: They're coming on strong.

COLLINS: I vaguely remember that part. I can't hear you, Carol. Huh?

COSTELLO: I'll see you guys later.

HEMMER: Bye-bye.

COSTELLO: You know, they mentioned the Dan Rather controversy, and we've been soliciting e-mails from you all morning long. We've gotten a lot of e-mail on this question: Should Dan Rather resign?

"CBS made a mistake," says Robert from Rapid City, South Dakota. "This is clear. At least Dan Rather stepped forward publicly with honor and humility to admit the mistake."

We're going to read more of your e-mails when DAYBREAK continues.

(COMMERCIAL BREAK)

COSTELLO: There is another cruel deadline in Iraq. Release all women prisoners in Iraq or another hostage will be killed -- that's what the terrorists are saying this morning.

American Eugene Armstrong was beheaded on video by those Islamic militants. So, how to stop this, or can we?

Kenneth Pollack is our CNN security analyst. He joins us live this morning.

Good morning.

KEN POLLACK, CNN SECURITY ANALYST: Good morning, Carol. How are you?

COSTELLO: Oh, I'm fine. You know, the man who seems to be at the root of this terror is Abu Musab al-Zarqawi. Is it possible to find him?

POLLACK: The honest answer is, if we do, it will probably be the result of a lot of good intelligence and quite a bit of luck as well. He has eluded us for 18 months in Iraq. He moves around very quickly and very easily.

And we also have to keep in mind that while he is a troublesome character in Iraq, he is part of the problem, he is not anywhere near anything like the major culprit behind most of the violence inside Iraq. Even eliminating Abu Musab al-Zarqawi is not going to stop the insurgency or even these kinds of kidnappings and beheadings.

COSTELLO: So, who is behind most of the insurgency?

POLLACK: Unfortunately, the answer to that is that there is no single group, there is no single person. The problem that we face in Iraq today, Carol, is that we have got a full-blown insurgency there, and it spans a whole range of different communities inside of Iraq. There are Sunnis. There are Shia. There are religiously-motivated people. There are politically-motivated people.

There are all kinds of different groups, all of whom just have one thing in common: They oppose the United States, they oppose the interim government, and they're willing to use violence.

But this is the problem: This is a very large insurgency with roots in a variety of different communities. There is no single silver bullet answer that's going to solve the problem.

COSTELLO: Which I would expect would make it very difficult for the U.S. military. Let's talk again about these beheadings, though, because they're just so gruesome and so tragic.

The relatives of the British hostage today appealed to Tony Blair to help, to find some sort of compromise. He's not going to do that, is he?

POLLACK: I think it unlikely. I don't know Tony Blair. I don't know what he is thinking. But the British government has been very steadfast about its commitment to Iraq.

I was speaking to some Brits the other day, and the point that they were making is that, you know, the interesting thing about the debate, the difference between the debate in the United States and in Great Britain is that in the U.S., while both candidates continue to say we're committed to rebuilding Iraq, they also do talk about getting out at some point. When might we be able to get out? Will it be in a year? Will it be in five years? Will it be in 10 years?

In Britain, what these Brits pointed out is the Brits never talk about that. They simply talk about getting the job done. That seems to suggest that Tony Blair at the very least is committed for the long haul.

COSTELLO: And you say the long haul. Well, let's talk about the bottom line, since we don't have much more time. The bottom line: What can the U.S. military do to stop the insurgency problem in Iraq, and perhaps to stop these groups from beheading these hostages?

POLLACK: In all honesty, Carol, there is probably no way for the U.S. military to stop the general pattern of beheadings, at least not for a very long time. These are isolated incidents. It's almost impossible to defend every American and every foreigner present in Iraq.

As for solving the larger problem with the insurgency, that is what we need to do. We need to get at the root of those problems. The military can help. They are part of the solution, but they're only part of it.

The military has to establish security, and honestly they have not got the forces right now to do that. They need more Iraqis. They probably need more Americans to do it as well. They may need to take out a new strategy to do so.

But beyond that, it's about creating the security environment in which Iraq's economy and political system can rebuild itself, because only when you've got Iraqis really committed to reconstruction, because they are happy about their political and economic circumstances are you going to see large sectors of the population willing to help enforce security. And that's the way that you deal with these kinds of insurgencies.

COSTELLO: Ken Pollack from the Brookings Institute, our security analyst, thank you for joining DAYBREAK this morning.

POLLACK: Thank you, Carol.

COSTELLO: Your e-mail about the Dan Rather memo flap in just two minutes, and you have a lot to say.

But first, this is DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: A lot of e-mails about the Dan Rather controversy. I've just been, like, wading through them. So, we're going to quickly get to some of them.

This is from Jane from Bedford, Ohio. She says: "As a teacher, I talk to my students about biased reporting and the need to approach things with a fair and impartial view. I would never watch CBS for the news again. Rather must go."

CHAD MYERS, CNN METEOROLOGIST: From Ed in Texas: "Dan Rather and CBS should leave no stone unturned to find out the truth. You remember the truth."

COSTELLO: This is from Thomas from Honolulu. He says: "If George W. Bush resigns from misleading the United States into war, then Dan Rather might consider it as well."

MYERS: I enjoyed this one: "Dan Rather made an honest mistake and a sincere apology. Can you imagine the unemployment rate with doctors, judges, police officers and weathermen if they all had to resign for mistakes?"

COSTELLO: "AMERICAN MORNING" starts right now.

MYERS: See you tomorrow.

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