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CNN Live At Daybreak

Falluja Shooting at Mosque; 'America's Voice'; 'Today's Talker'

Aired November 16, 2004 - 06:29   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. I'm Carol Costello. Welcome to the last half-hour of DAYBREAK. There's a lot going on this morning, so here are the latest headlines for you now.
U.S. and Iraqi forces have launched an offensive against insurgents in the northern city of Mosul. They're trying to put down an uprising that started last week when insurgents took over several police stations.

Crude oil futures fell today. Can gasoline prices be far behind? U.S. light crude futures dropped as much as 4 percent overnight to $45.20 a barrel.

Senator Harry Reid of Nevada has been tapped by Democrats to take over as minority leader. Reid replaces South Dakota's outgoing Senator Tom Daschle, who was defeated in his bid for re-election.

Senator Arlen Specter will argue today that he should be the next chairman of the Judiciary Committee. He goes before the Republican members of the panel. Anti-abortion conservatives plan to protest against Specter.

(WEATHER REPORT)

COSTELLO: Back to the battle of Falluja now. An American Marine is being investigated for a possible war crime after a deadly shooting at a mosque. It was captured on videotape.

And CNN's senior Pentagon correspondent Jamie McIntyre has all of the details for you. A warning though: Some of the pictures you will see are disturbing.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT (voice over): On Friday, U.S. Marines stormed a Falluja mosque after taking fire from insurgents inside. The Marines killed 10 fighters and wounded five others, who were given some medical treatment and left to be picked up later.

The next day, last Saturday, a different Marine unit went back into the mosque in response to reports insurgent had returned. Gunfire could be heard as the Marine unit that had been there Friday and an embedded television reporter arrived at the mosque minutes later. As they enter, three of the previous day's wounded laying dying, apparently shot again. It's unclear the Marines who were already there knew the wounded had been captured and disarmed the day before. One severely-wounded man is then shot in the head by one of those Marines at point-blank range.

UNIDENTIFIED MALE: He's dead!

UNIDENTIFIED MALE: No, he's breathing.

UNIDENTIFIED MALE: He's faking it.

UNIDENTIFIED MALE: He's dead now.

MCINTYRE: CNN has chosen not to show the actual killing due to the explicit nature of the video.

Afterwards, one man tells the television reporter in Arabic that he was among the prisoners captured on Friday.

UNIDENTIFIED MALE: What happened?

MCINTYRE: When the TV reporter relays that to the Marine, he replies, "I didn't know, sir. I didn't know."

That Marine, who is said to have suffered a gunshot wound to the face the day before, is now under investigation. If he knowingly shot a wounded captive who did not pose a threat it would be a war crime.

LT. COL. BOB MILLER, U.S. MARINES CORPS: They would have to be using force in self-defense, yes. An enemy wounded, in this case insurgents, who don't pose a threat would not be considered hostile generally. I think that's a fair statement.

MCINTYRE: The investigation will determine if the Marine violated any rules or should be charged with any crime. The Marines point out that in the fog of war it's not always clear who is a threat.

In a separate incident the same day, a Marine was killed and five others wounded when they came across a dead body that was booby- trapped.

(on camera): U.S. commanders are worried about the impact of the video, which seems to show a prisoner being unjustly killed. They're worried that instead of surrendering, it could encourage the insurgents to fight on to the death.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: And we did get word from a Marine commander this morning. He says the Marine in question has been withdrawn from the battlefield pending results of an investigation. And the commander stresses that the U.S. Marine Corps follows the law of armed conflict and holds itself to a high standard of accountability.

To Washington now and the big cabinet changes under way. President Bush could nominate Condoleezza Rice his secretary of state as early as today. That's the word from senior administration sources.

Secretary of State Colin Powell's resignation was announced yesterday, as you know. Officials say Rice's top deputy, Stephen Hadley, would be elevated into her current position as national security advisor.

Of course, by far, the biggest name to resign is Colin Powell. And while he may have been marginalized, we have numbers for you.

Let's head live to Princeton, New Jersey, and Gallup Poll editor- in-chief Frank Newport.

Good morning, Frank.

FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Good morning, Carol.

Indeed, upon the announcement yesterday, we went into our Gallup data to show you some things about Colin Powell.

First of all, last week, we asked Republicans, who would you want to be your party's nominee in 2008? Now, Powell has said he doesn't have any plans for what he's going to do now, but look at this. Spontaneously, 7 percent of Republicans last week said they want Powell to be the nominee, and he's almost as high as the two top vote- getters in this open-ended question: McCain and Giuliani.

So, certainly, there is some interest for Powell in 2008. Of course, he's said nothing about that.

By the way, Powell is the second-highest rated person that we have rated in the history of our Gallup Poll annals using this favorable or unfavorable scale. Look at that: Colin Powell at 88 percent, tied with Tiger Woods. That from a couple of years ago. Then Bush right after 9/11, Pope John Paul II and Sammy Sosa, the Chicago Cubs baseball player. So, Powell is one of the most highly- rated people we've ever measured -- Carol.

COSTELLO: Interesting. You know, yesterday we did a lot about these new ads in California that want to change the Constitution to allow immigrants or naturalized citizens to become president. Is there support for that?

NEWPORT: No. Now that may change if these advertising campaigns work. But we did ask people that when Arnold Schwarzenegger was well in the news last year, and Americans fairly overwhelmingly, 70-28, said no, they like the Constitution just like it is. You have to be natural-born to run for president.

COSTELLO: All right, on another topic. Congress heads back to work today. What do Americans think they should be working on? NEWPORT: Well, Carol, it is a full menu. There is no shortage of issues for both Congress and, of course, for Bush as he moves into his second term.

Here is our November asking of the American public, very important data. We simply say, what's the most important problem facing the country? As I mentioned, no shortage of issues. Iraq now 26 percent of Americans spontaneously see that's the major problem. Then the economy and jobs still there as major issues. Terrorism, of course. And then health care, which has been coming up in this list over the last, oh, three months or so. No shortage of things to work on.

COSTELLO: I'd say not. Thank you, Frank Newport, live from Princeton, New Jersey this morning.

We'll have much more ahead on the cabinet changes, including why one former secretary of state thinks Condoleezza Rice is all wrong for the job.

And a little later, a look at what some drug companies are doing to fight theft and counterfeiting.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:39 Eastern. Here's what's all new this morning.

National Security Advisor Condoleezza Rice is likely to be nominated to replace Colin Powell as secretary of state. That announcement is expected to come later this afternoon.

Saddam Hussein swindled as much as $21 billion by subverting United Nations sanctions, including the oil-for-food program. That's double the amount previously thought to have been siphoned off. Congressional investigators say the new figure also includes profits from illegal oil smuggling.

In money news, Abercrombie and Fitch has reached a reported multimillion-dollar settlement in an employee lawsuit. The suit alleges the clothing retailer promoted whites ahead of minority employees. Equal employment officials say the settlement will have far-reaching effects on the clothing industry.

In culture, it looks like Tom Hanks will take a lead role in the film adaptation of "The Da Vinci Code." The best-selling book is being made into a movie by director Ron Howard. Shooting is expected to begin next year.

In sports, the Philadelphia Eagles pound the Dallas Cowboys 49-21 in Monday night football. Donovan McNabb, that amazing man, threw for 345 yards and four touchdowns. The Eagles are now 8-1 -- Chad. CHAD MYERS, CNN METEOROLOGIST: He really played a great game last night. Hey, Giants fans, Eli Manning is now your starting quarterback; Kurt Warner out. So we'll see how that goes next Sunday.

Cold and flu report for this morning. We will have some cold and flu reports for you as it comes on and as this goes on the entire season. Clearly, there will be more cold and flu reports than we have now.

But as of November 6, you can see some of the sporadic activity in the green states. Nothing yet in the yellows, and no reports at all from Nevada or into Arkansas and Mississippi. But obviously cold and flu beginning to pop its head into the forecast for us here -- Carol.

COSTELLO: Yes, pop its ugly head out of its hole.

MYERS: Yes.

COSTELLO: Thank you, Chad.

Those are the latest headlines for you.

Let's head down the street and check in with Rick and Heidi to see what's coming up.

HEIDI COLLINS, CNN ANCHOR: Hey, Carol. Good morning.

COSTELLO: Good morning.

COLLINS: You're looking great on your new set there. It's beautiful.

COSTELLO: It is, isn't it?

RICK SANCHEZ, CNN ANCHOR: It must feel good to say "down the street" for the first time, huh?

COSTELLO: I know. I like the sound of that.

COLLINS: Well, welcome to New York, although you've been here many, many times. We want to tell you a little bit about what's coming up, though, on "AMERICAN MORNING" today.

Of course, for a couple of days now we've been talking about the cabinet shakeup. Colin Powell resigned. Now, Condoleezza Rice is poised to make history herself as the first African-American woman to be in this possible position. But is she the right fit as secretary of state? We're going to talk with former White House advisor David Gergen about that.

SANCHEZ: That's not the only place there are changes. Even more CIA changes as well. Is new Director Porter Goss jeopardizing U.S. security? We'll talk to a former CIA operative who wrote a controversial book, "Imperial Hubris," about that. COSTELLO: And the Vioxx controversy. Remember in September when this drug was taken off the market? The manufacturer, of course, under fire for how it handled the drug's problems, and we are going to get the response from Merck Chairman Raymond Gilmartin. We'll hear what he has to say about it.

That and more all ahead on this "AMERICAN MORNING" -- Carol.

COSTELLO: All right. We'll see you in about, oh, 20 minutes or so.

COLLINS: Great.

COSTELLO: Thanks so much.

As you've heard by now, Secretary of State Colin Powell is resigning. Condoleezza Rice will likely take over.

Today's hot talker, did serving as secretary of state tarnish Powell's sterling reputation?

Joining us from the left, radio talk show host Nancy Skinner, and from the right, syndicated columnist Armstrong Williams.

Welcome to you both.

NANCY SKINNER, RADIO TALK SHOW HOST: Good morning.

ARMSTRONG WILLIAMS, SYNDICATED COLUMNIST: Good morning.

COLLINS: You know, Jeanne Moos did an interesting story, just talking to people on the street about Colin Powell. Some comments from them: He was treated shabbily. He's too smart for this administration.

Nancy, how would you characterize Colin Powell's tenure?

SKINNER: Well, I'll tell you, "Newsweek" did some great reporting last October about that fateful period before he went to the U.N. And it's so interesting, because what he said is he went through with a script that was delivered to him by the National Security Council, and it had all of this bad intelligence in it.

And for days and day, they argued over it. And it was Condoleezza Rice who was arguing to reinsert some of this bad intelligence in that Colin Powell insisted be thrown out. And look what happened.

Now, Colin Powell, he went up as a loyal soldier. His image is tarnished because of this. Condoleezza Rice, who fought to keep that bad intelligence in, is being promoted. And at the CIA, those who leaked information saying that it was bad intelligence, are being purged.

What great irony is all of this?

COSTELLO: Armstrong, would you agree?

WILLIAMS: Absolutely not. Actually, it's bordering on ridiculous what she just stated.

Listen, Colin Powell is secretary of state. How many people in their lifetime get that honor?

Colin Powell is a big boy. Yes, he had rumblings with Cheney and Rumsfeld. But that's part of the turf. Colin Powell is the person that directed in the end the president's policy on Iraq. The (UNINTELLIGIBLE) became a disappointment when they realized what he echoed would happen in Iraq did not happen.

Colin Powell kept the president's confidence. He helped navigate the waters. Colin Powell, under his watch, look at what happened in Syria. Look at what just happened in Iran where they decided not to pursue uranium.

Colin Powell is someone of great standing. He's in the fire. It's not going to ever be perfect. He will leave that office with a sterling character, even more respect all around the world. Just look at the (UNINTELLIGIBLE).

He and Dr. Rice have a very good relationship. The president has utmost confidence in her. She and the secretary of state and Mr. Rumsfeld met regularly during the week. She's very knowledgeable about what's going on. It's not as if you're putting a neophyte in that position. Actually, she's very natural to become the next person to succeed him.

COSTELLO: Well, along those, because you both have very starkly different viewpoints, this is an op-ed in "The New York Times" this morning by Walter Isaacson. And he says: "Colin Powell's problem is that both the Bush administration's loyalists and its critics are disappointed in him. The former because he was not fully supportive of the strategy and tactics that led to the occupation of Iraq, and the latter because he did not publicly throw himself in front of that train."

And, Nancy, I think that critics will say Condoleezza Rice is too loyal to the president. There will be no moderate voice there.

SKINNER: Well, exactly. And my example proves it. How was Colin Powell rewarded for his loyalty? He, reportedly by CNN, said he wanted to stay on a bit and deal with the Middle East opportunity. And he's out of there.

And Condoleezza Rice went along with Dick Cheney and the rest of the folks. And, you know, where they got their information was from Ahmed Chalabi. This is where all of that bogus intelligence came from. And because Condoleezza Rice wanted to support the rush to war, she was not a critical voice, a factor, in the speech that led to the great U.N. presentation.

COSTELLO: Let's bring Armstrong in here and talk about loyalty and talk about whether you do whatever your boss says. Or is it good to have a differing opinion?

WILLIAMS: Well, Secretary Colin Powell was very cautious about going into Iraq. That is no secret. I think that was very good for the president. You need to have a voice, a reason, and someone giving him a different perspective. But in the end, Colin Powell was very forceful in his support of the president going in Iraq and defending the president after he was there.

Obviously, Ms. Rice is a hawk. She always supported the president on Iraq, never questioned it, and it's not because of loyalty. It's exactly what she believed. Let's not forget, she's an expert on Soviet studies. She's an expert in the Middle East and world affairs. She brought her experience to bear. She did her research. And this is the conclusion she same to...

SKINNER: The intelligence was wrong!

WILLIAMS: Can I...

SKINNER: The research was wrong, Armstrong.

WILLIAMS: Can I finish, please? Look, the bottom line is President Bush has a right to select people who share his ideology and his vision not only for Iraq and the Middle East, but also his vision for what he perceives national security and what the affairs of state should be about.

She's a loyalist. She has his confidence. He's unwavering in his support there. She gives him great comfort. They're on the same page. And I think that is a good thing going forward...

COSTELLO: OK...

WILLIAMS: ... as we continue to fight this war on terrorism.

COSTELLO: A final thought from both of you. Is it likely that Colin Powell will either run for office or write a juicy tell-all book, Nancy?

SKINNER: Well, you know, he'll write his memoirs, "I told you so." Because on so many points he was right, and he was not listened to, and it's a sad loss for this administration. Who knows what the next four years holds in terms of diplomacy?

COSTELLO: Armstrong, your prediction?

WILLIAMS: It says how little you know about this man. He's a tremendous soldier. He's a general. He's loyal to the president. He's not no tattletale. He will remain loyal to the president and continue to help him carry out his policy of mending the wounds overseas that have been breached as a result of this war in Iraq.

He's a good soldier, and he will always forever remain loyal and faithful to the president, because he's appreciative of serving him for four years as secretary of state.

COSTELLO: Fascinating conversation this morning. Nancy Skinner, Armstrong Williams, thanks to you both.

SKINNER: You bet.

WILLIAMS: Thank you.

COSTELLO: Keeping prescription drugs out of the wrong hands. We're going to go in depth and tell you how a tiny little mechanism could keep you safer. Ali Velshi is next.

(COMMERCIAL BREAK)

COSTELLO: Selling prescription drugs will soon be electronically tracked by the Food and Drug Administration. Special radio transmitters are being used in an effort to crack down on the black market and on drug counterfeiters.

Here to talk about that pilot program is DAYBREAK contributor Ali Velshi.

And there are all kinds of stuff associated with this.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: This is such a fun story. First of all, Pfizer coming out and saying Oxycontin and Viagra, which are two heavily-counterfeited drugs, will now have in their packaging these RFID tags. This is Radio Frequency ID. Think about it as bar codes with steroids. That's what some people call it.

The idea is that they actually transmit a signal. And you can track these packages from the manufacturing plant all the way to the pharmacy. So if they're stolen or if they're counterfeit, you can always see what's going on.

It's supposed to make the drug safer. It's supposed to help law enforcement catch drug thieves.

Now, this is exactly the same technology that's used in automated toll booths. It's the same technology that's used when you go to Exxon stations and you just sort of wave that keychain wand in front of it. It's also the same technology that was used to keep your dogs and cats from running away. If they ran away, the vet could scan them.

COSTELLO: Oh, yes.

VELSHI: There's a little chip the size of a grain of rice that was injected into their -- under their skin, and that's how you can find them.

Now, in March, a club owner in Spain decided he wanted something that was like a VIP card, a way of letting people into his club. So they started getting these little chips injected under patrons to the club. So if you dress in really, really skimpy clothes, and you have no space for a wallet or a purse or anything like that, or even a credit card, because clothes are skimpy these days, and you can go...

COSTELLO: Especially in Spain. VELSHI: Exactly. Well, "CSI Miami," a very popular show, did a show on that recently about all of the information that you can carry on these little chips. And I've seen them.

In fact, I talked to the CEO of a company. He had one in him, and he took this wand and just waved it over his shoulder. And lo and behold, you can carry as much information as you want.

So the FDA likes it for information purposes, like the uses that Pfizer and GlaxoSmithKline are going to use them for, but it's a little dodgy as to whether you want to be putting a chip inside your arm.

COSTELLO: Well, I suppose that privacy is an issue.

VELSHI: That's the main issue.

COSTELLO: But, to me, it would be easier.

VELSHI: Convenient. Well, Wal-Mart, OK, Wal-Mart came out with its quarterly numbers, $68 billion in sales. By January 1, they are asking their top 100 suppliers to have RFID tags on their merchandise. That's eight billion tags that are going to be there. The idea is they can keep better control of their inventory.

But, see where this goes. You pack up your stuff at Wal-Mart. You pack up your car. You walk out. There's nothing -- no human interaction. This thing scans all of your stuff. You have one of these grain of rice things in you with your credit card. You just walk right out. No more lines. No more people to talk to. It's a lonely existence.

But on one level it seems so convenient, and on the other level you can see why some people might think this is a bit of a concern.

COSTELLO: Yes. Fascinating stuff.

VELSHI: Yes...

(CROSSTALK)

COSTELLO: Thank you very much. We'll see you again tomorrow.

VELSHI: Sure.

COSTELLO: In the technology world, smaller and lighter is usually better. Or is it? We'll talk about one new breakthrough that bucks the trend.

But first, this is DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: It is time for our DAYBREAK "Eye-Opener."

A New Hampshire high school student is facing drug trafficking charges after he allegedly sold cookies laced with marijuana. They apparently sold for three bucks a cookie, and at least three students ate them. A teacher tipped off authorities after noticing suspicious behavior in the halls of the school. If convicted, the 17-year-old could face a minimum of one year in prison.

Get this, Chad. A pack of beavers used some ill-gotten gains in their latest building project. Police found two bags of stolen money in a creek, but the third bag was missing. Well, it turns out the remaining bag had been torn open by the beavers...

MYERS: Wow!

COSTELLO: ... who rolled thousands of dollars into the sticks of their dam near Greensburg, Louisiana.

MYERS: I bet that was D.B. Cooper's money.

COSTELLO: Actually, the money was from a casino robbery.

MYERS: Oh.

COSTELLO: But those clever beavers.

Finally this morning, how big is your cell phone? A Czech company is hoping to make a splash with this full-sized portable phone. It has all of the features of your home phone, including a speaker and big, old buttons. It also sports a full-sized keyboard for text messaging. So if you're having trouble with those little, tiny gadgets, here is an alternative for you.

MYERS: I got a nice e-mail from Tom in San Jose: "With the advent of this giant cell phone, what could be next? Lime green leisure suits? Oh, the horror."

COSTELLO: I bet you had one of those, didn't you?

MYERS: I did not. I was too young for that.

COSTELLO: Sure, Chad.

"AMERICAN MORNING" starts right now. Thank you for joining us.

MYERS: Have a great day. See you tomorrow. Bye.

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Aired November 16, 2004 - 06:29   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. I'm Carol Costello. Welcome to the last half-hour of DAYBREAK. There's a lot going on this morning, so here are the latest headlines for you now.
U.S. and Iraqi forces have launched an offensive against insurgents in the northern city of Mosul. They're trying to put down an uprising that started last week when insurgents took over several police stations.

Crude oil futures fell today. Can gasoline prices be far behind? U.S. light crude futures dropped as much as 4 percent overnight to $45.20 a barrel.

Senator Harry Reid of Nevada has been tapped by Democrats to take over as minority leader. Reid replaces South Dakota's outgoing Senator Tom Daschle, who was defeated in his bid for re-election.

Senator Arlen Specter will argue today that he should be the next chairman of the Judiciary Committee. He goes before the Republican members of the panel. Anti-abortion conservatives plan to protest against Specter.

(WEATHER REPORT)

COSTELLO: Back to the battle of Falluja now. An American Marine is being investigated for a possible war crime after a deadly shooting at a mosque. It was captured on videotape.

And CNN's senior Pentagon correspondent Jamie McIntyre has all of the details for you. A warning though: Some of the pictures you will see are disturbing.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT (voice over): On Friday, U.S. Marines stormed a Falluja mosque after taking fire from insurgents inside. The Marines killed 10 fighters and wounded five others, who were given some medical treatment and left to be picked up later.

The next day, last Saturday, a different Marine unit went back into the mosque in response to reports insurgent had returned. Gunfire could be heard as the Marine unit that had been there Friday and an embedded television reporter arrived at the mosque minutes later. As they enter, three of the previous day's wounded laying dying, apparently shot again. It's unclear the Marines who were already there knew the wounded had been captured and disarmed the day before. One severely-wounded man is then shot in the head by one of those Marines at point-blank range.

UNIDENTIFIED MALE: He's dead!

UNIDENTIFIED MALE: No, he's breathing.

UNIDENTIFIED MALE: He's faking it.

UNIDENTIFIED MALE: He's dead now.

MCINTYRE: CNN has chosen not to show the actual killing due to the explicit nature of the video.

Afterwards, one man tells the television reporter in Arabic that he was among the prisoners captured on Friday.

UNIDENTIFIED MALE: What happened?

MCINTYRE: When the TV reporter relays that to the Marine, he replies, "I didn't know, sir. I didn't know."

That Marine, who is said to have suffered a gunshot wound to the face the day before, is now under investigation. If he knowingly shot a wounded captive who did not pose a threat it would be a war crime.

LT. COL. BOB MILLER, U.S. MARINES CORPS: They would have to be using force in self-defense, yes. An enemy wounded, in this case insurgents, who don't pose a threat would not be considered hostile generally. I think that's a fair statement.

MCINTYRE: The investigation will determine if the Marine violated any rules or should be charged with any crime. The Marines point out that in the fog of war it's not always clear who is a threat.

In a separate incident the same day, a Marine was killed and five others wounded when they came across a dead body that was booby- trapped.

(on camera): U.S. commanders are worried about the impact of the video, which seems to show a prisoner being unjustly killed. They're worried that instead of surrendering, it could encourage the insurgents to fight on to the death.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: And we did get word from a Marine commander this morning. He says the Marine in question has been withdrawn from the battlefield pending results of an investigation. And the commander stresses that the U.S. Marine Corps follows the law of armed conflict and holds itself to a high standard of accountability.

To Washington now and the big cabinet changes under way. President Bush could nominate Condoleezza Rice his secretary of state as early as today. That's the word from senior administration sources.

Secretary of State Colin Powell's resignation was announced yesterday, as you know. Officials say Rice's top deputy, Stephen Hadley, would be elevated into her current position as national security advisor.

Of course, by far, the biggest name to resign is Colin Powell. And while he may have been marginalized, we have numbers for you.

Let's head live to Princeton, New Jersey, and Gallup Poll editor- in-chief Frank Newport.

Good morning, Frank.

FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Good morning, Carol.

Indeed, upon the announcement yesterday, we went into our Gallup data to show you some things about Colin Powell.

First of all, last week, we asked Republicans, who would you want to be your party's nominee in 2008? Now, Powell has said he doesn't have any plans for what he's going to do now, but look at this. Spontaneously, 7 percent of Republicans last week said they want Powell to be the nominee, and he's almost as high as the two top vote- getters in this open-ended question: McCain and Giuliani.

So, certainly, there is some interest for Powell in 2008. Of course, he's said nothing about that.

By the way, Powell is the second-highest rated person that we have rated in the history of our Gallup Poll annals using this favorable or unfavorable scale. Look at that: Colin Powell at 88 percent, tied with Tiger Woods. That from a couple of years ago. Then Bush right after 9/11, Pope John Paul II and Sammy Sosa, the Chicago Cubs baseball player. So, Powell is one of the most highly- rated people we've ever measured -- Carol.

COSTELLO: Interesting. You know, yesterday we did a lot about these new ads in California that want to change the Constitution to allow immigrants or naturalized citizens to become president. Is there support for that?

NEWPORT: No. Now that may change if these advertising campaigns work. But we did ask people that when Arnold Schwarzenegger was well in the news last year, and Americans fairly overwhelmingly, 70-28, said no, they like the Constitution just like it is. You have to be natural-born to run for president.

COSTELLO: All right, on another topic. Congress heads back to work today. What do Americans think they should be working on? NEWPORT: Well, Carol, it is a full menu. There is no shortage of issues for both Congress and, of course, for Bush as he moves into his second term.

Here is our November asking of the American public, very important data. We simply say, what's the most important problem facing the country? As I mentioned, no shortage of issues. Iraq now 26 percent of Americans spontaneously see that's the major problem. Then the economy and jobs still there as major issues. Terrorism, of course. And then health care, which has been coming up in this list over the last, oh, three months or so. No shortage of things to work on.

COSTELLO: I'd say not. Thank you, Frank Newport, live from Princeton, New Jersey this morning.

We'll have much more ahead on the cabinet changes, including why one former secretary of state thinks Condoleezza Rice is all wrong for the job.

And a little later, a look at what some drug companies are doing to fight theft and counterfeiting.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:39 Eastern. Here's what's all new this morning.

National Security Advisor Condoleezza Rice is likely to be nominated to replace Colin Powell as secretary of state. That announcement is expected to come later this afternoon.

Saddam Hussein swindled as much as $21 billion by subverting United Nations sanctions, including the oil-for-food program. That's double the amount previously thought to have been siphoned off. Congressional investigators say the new figure also includes profits from illegal oil smuggling.

In money news, Abercrombie and Fitch has reached a reported multimillion-dollar settlement in an employee lawsuit. The suit alleges the clothing retailer promoted whites ahead of minority employees. Equal employment officials say the settlement will have far-reaching effects on the clothing industry.

In culture, it looks like Tom Hanks will take a lead role in the film adaptation of "The Da Vinci Code." The best-selling book is being made into a movie by director Ron Howard. Shooting is expected to begin next year.

In sports, the Philadelphia Eagles pound the Dallas Cowboys 49-21 in Monday night football. Donovan McNabb, that amazing man, threw for 345 yards and four touchdowns. The Eagles are now 8-1 -- Chad. CHAD MYERS, CNN METEOROLOGIST: He really played a great game last night. Hey, Giants fans, Eli Manning is now your starting quarterback; Kurt Warner out. So we'll see how that goes next Sunday.

Cold and flu report for this morning. We will have some cold and flu reports for you as it comes on and as this goes on the entire season. Clearly, there will be more cold and flu reports than we have now.

But as of November 6, you can see some of the sporadic activity in the green states. Nothing yet in the yellows, and no reports at all from Nevada or into Arkansas and Mississippi. But obviously cold and flu beginning to pop its head into the forecast for us here -- Carol.

COSTELLO: Yes, pop its ugly head out of its hole.

MYERS: Yes.

COSTELLO: Thank you, Chad.

Those are the latest headlines for you.

Let's head down the street and check in with Rick and Heidi to see what's coming up.

HEIDI COLLINS, CNN ANCHOR: Hey, Carol. Good morning.

COSTELLO: Good morning.

COLLINS: You're looking great on your new set there. It's beautiful.

COSTELLO: It is, isn't it?

RICK SANCHEZ, CNN ANCHOR: It must feel good to say "down the street" for the first time, huh?

COSTELLO: I know. I like the sound of that.

COLLINS: Well, welcome to New York, although you've been here many, many times. We want to tell you a little bit about what's coming up, though, on "AMERICAN MORNING" today.

Of course, for a couple of days now we've been talking about the cabinet shakeup. Colin Powell resigned. Now, Condoleezza Rice is poised to make history herself as the first African-American woman to be in this possible position. But is she the right fit as secretary of state? We're going to talk with former White House advisor David Gergen about that.

SANCHEZ: That's not the only place there are changes. Even more CIA changes as well. Is new Director Porter Goss jeopardizing U.S. security? We'll talk to a former CIA operative who wrote a controversial book, "Imperial Hubris," about that. COSTELLO: And the Vioxx controversy. Remember in September when this drug was taken off the market? The manufacturer, of course, under fire for how it handled the drug's problems, and we are going to get the response from Merck Chairman Raymond Gilmartin. We'll hear what he has to say about it.

That and more all ahead on this "AMERICAN MORNING" -- Carol.

COSTELLO: All right. We'll see you in about, oh, 20 minutes or so.

COLLINS: Great.

COSTELLO: Thanks so much.

As you've heard by now, Secretary of State Colin Powell is resigning. Condoleezza Rice will likely take over.

Today's hot talker, did serving as secretary of state tarnish Powell's sterling reputation?

Joining us from the left, radio talk show host Nancy Skinner, and from the right, syndicated columnist Armstrong Williams.

Welcome to you both.

NANCY SKINNER, RADIO TALK SHOW HOST: Good morning.

ARMSTRONG WILLIAMS, SYNDICATED COLUMNIST: Good morning.

COLLINS: You know, Jeanne Moos did an interesting story, just talking to people on the street about Colin Powell. Some comments from them: He was treated shabbily. He's too smart for this administration.

Nancy, how would you characterize Colin Powell's tenure?

SKINNER: Well, I'll tell you, "Newsweek" did some great reporting last October about that fateful period before he went to the U.N. And it's so interesting, because what he said is he went through with a script that was delivered to him by the National Security Council, and it had all of this bad intelligence in it.

And for days and day, they argued over it. And it was Condoleezza Rice who was arguing to reinsert some of this bad intelligence in that Colin Powell insisted be thrown out. And look what happened.

Now, Colin Powell, he went up as a loyal soldier. His image is tarnished because of this. Condoleezza Rice, who fought to keep that bad intelligence in, is being promoted. And at the CIA, those who leaked information saying that it was bad intelligence, are being purged.

What great irony is all of this?

COSTELLO: Armstrong, would you agree?

WILLIAMS: Absolutely not. Actually, it's bordering on ridiculous what she just stated.

Listen, Colin Powell is secretary of state. How many people in their lifetime get that honor?

Colin Powell is a big boy. Yes, he had rumblings with Cheney and Rumsfeld. But that's part of the turf. Colin Powell is the person that directed in the end the president's policy on Iraq. The (UNINTELLIGIBLE) became a disappointment when they realized what he echoed would happen in Iraq did not happen.

Colin Powell kept the president's confidence. He helped navigate the waters. Colin Powell, under his watch, look at what happened in Syria. Look at what just happened in Iran where they decided not to pursue uranium.

Colin Powell is someone of great standing. He's in the fire. It's not going to ever be perfect. He will leave that office with a sterling character, even more respect all around the world. Just look at the (UNINTELLIGIBLE).

He and Dr. Rice have a very good relationship. The president has utmost confidence in her. She and the secretary of state and Mr. Rumsfeld met regularly during the week. She's very knowledgeable about what's going on. It's not as if you're putting a neophyte in that position. Actually, she's very natural to become the next person to succeed him.

COSTELLO: Well, along those, because you both have very starkly different viewpoints, this is an op-ed in "The New York Times" this morning by Walter Isaacson. And he says: "Colin Powell's problem is that both the Bush administration's loyalists and its critics are disappointed in him. The former because he was not fully supportive of the strategy and tactics that led to the occupation of Iraq, and the latter because he did not publicly throw himself in front of that train."

And, Nancy, I think that critics will say Condoleezza Rice is too loyal to the president. There will be no moderate voice there.

SKINNER: Well, exactly. And my example proves it. How was Colin Powell rewarded for his loyalty? He, reportedly by CNN, said he wanted to stay on a bit and deal with the Middle East opportunity. And he's out of there.

And Condoleezza Rice went along with Dick Cheney and the rest of the folks. And, you know, where they got their information was from Ahmed Chalabi. This is where all of that bogus intelligence came from. And because Condoleezza Rice wanted to support the rush to war, she was not a critical voice, a factor, in the speech that led to the great U.N. presentation.

COSTELLO: Let's bring Armstrong in here and talk about loyalty and talk about whether you do whatever your boss says. Or is it good to have a differing opinion?

WILLIAMS: Well, Secretary Colin Powell was very cautious about going into Iraq. That is no secret. I think that was very good for the president. You need to have a voice, a reason, and someone giving him a different perspective. But in the end, Colin Powell was very forceful in his support of the president going in Iraq and defending the president after he was there.

Obviously, Ms. Rice is a hawk. She always supported the president on Iraq, never questioned it, and it's not because of loyalty. It's exactly what she believed. Let's not forget, she's an expert on Soviet studies. She's an expert in the Middle East and world affairs. She brought her experience to bear. She did her research. And this is the conclusion she same to...

SKINNER: The intelligence was wrong!

WILLIAMS: Can I...

SKINNER: The research was wrong, Armstrong.

WILLIAMS: Can I finish, please? Look, the bottom line is President Bush has a right to select people who share his ideology and his vision not only for Iraq and the Middle East, but also his vision for what he perceives national security and what the affairs of state should be about.

She's a loyalist. She has his confidence. He's unwavering in his support there. She gives him great comfort. They're on the same page. And I think that is a good thing going forward...

COSTELLO: OK...

WILLIAMS: ... as we continue to fight this war on terrorism.

COSTELLO: A final thought from both of you. Is it likely that Colin Powell will either run for office or write a juicy tell-all book, Nancy?

SKINNER: Well, you know, he'll write his memoirs, "I told you so." Because on so many points he was right, and he was not listened to, and it's a sad loss for this administration. Who knows what the next four years holds in terms of diplomacy?

COSTELLO: Armstrong, your prediction?

WILLIAMS: It says how little you know about this man. He's a tremendous soldier. He's a general. He's loyal to the president. He's not no tattletale. He will remain loyal to the president and continue to help him carry out his policy of mending the wounds overseas that have been breached as a result of this war in Iraq.

He's a good soldier, and he will always forever remain loyal and faithful to the president, because he's appreciative of serving him for four years as secretary of state.

COSTELLO: Fascinating conversation this morning. Nancy Skinner, Armstrong Williams, thanks to you both.

SKINNER: You bet.

WILLIAMS: Thank you.

COSTELLO: Keeping prescription drugs out of the wrong hands. We're going to go in depth and tell you how a tiny little mechanism could keep you safer. Ali Velshi is next.

(COMMERCIAL BREAK)

COSTELLO: Selling prescription drugs will soon be electronically tracked by the Food and Drug Administration. Special radio transmitters are being used in an effort to crack down on the black market and on drug counterfeiters.

Here to talk about that pilot program is DAYBREAK contributor Ali Velshi.

And there are all kinds of stuff associated with this.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: This is such a fun story. First of all, Pfizer coming out and saying Oxycontin and Viagra, which are two heavily-counterfeited drugs, will now have in their packaging these RFID tags. This is Radio Frequency ID. Think about it as bar codes with steroids. That's what some people call it.

The idea is that they actually transmit a signal. And you can track these packages from the manufacturing plant all the way to the pharmacy. So if they're stolen or if they're counterfeit, you can always see what's going on.

It's supposed to make the drug safer. It's supposed to help law enforcement catch drug thieves.

Now, this is exactly the same technology that's used in automated toll booths. It's the same technology that's used when you go to Exxon stations and you just sort of wave that keychain wand in front of it. It's also the same technology that was used to keep your dogs and cats from running away. If they ran away, the vet could scan them.

COSTELLO: Oh, yes.

VELSHI: There's a little chip the size of a grain of rice that was injected into their -- under their skin, and that's how you can find them.

Now, in March, a club owner in Spain decided he wanted something that was like a VIP card, a way of letting people into his club. So they started getting these little chips injected under patrons to the club. So if you dress in really, really skimpy clothes, and you have no space for a wallet or a purse or anything like that, or even a credit card, because clothes are skimpy these days, and you can go...

COSTELLO: Especially in Spain. VELSHI: Exactly. Well, "CSI Miami," a very popular show, did a show on that recently about all of the information that you can carry on these little chips. And I've seen them.

In fact, I talked to the CEO of a company. He had one in him, and he took this wand and just waved it over his shoulder. And lo and behold, you can carry as much information as you want.

So the FDA likes it for information purposes, like the uses that Pfizer and GlaxoSmithKline are going to use them for, but it's a little dodgy as to whether you want to be putting a chip inside your arm.

COSTELLO: Well, I suppose that privacy is an issue.

VELSHI: That's the main issue.

COSTELLO: But, to me, it would be easier.

VELSHI: Convenient. Well, Wal-Mart, OK, Wal-Mart came out with its quarterly numbers, $68 billion in sales. By January 1, they are asking their top 100 suppliers to have RFID tags on their merchandise. That's eight billion tags that are going to be there. The idea is they can keep better control of their inventory.

But, see where this goes. You pack up your stuff at Wal-Mart. You pack up your car. You walk out. There's nothing -- no human interaction. This thing scans all of your stuff. You have one of these grain of rice things in you with your credit card. You just walk right out. No more lines. No more people to talk to. It's a lonely existence.

But on one level it seems so convenient, and on the other level you can see why some people might think this is a bit of a concern.

COSTELLO: Yes. Fascinating stuff.

VELSHI: Yes...

(CROSSTALK)

COSTELLO: Thank you very much. We'll see you again tomorrow.

VELSHI: Sure.

COSTELLO: In the technology world, smaller and lighter is usually better. Or is it? We'll talk about one new breakthrough that bucks the trend.

But first, this is DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: It is time for our DAYBREAK "Eye-Opener."

A New Hampshire high school student is facing drug trafficking charges after he allegedly sold cookies laced with marijuana. They apparently sold for three bucks a cookie, and at least three students ate them. A teacher tipped off authorities after noticing suspicious behavior in the halls of the school. If convicted, the 17-year-old could face a minimum of one year in prison.

Get this, Chad. A pack of beavers used some ill-gotten gains in their latest building project. Police found two bags of stolen money in a creek, but the third bag was missing. Well, it turns out the remaining bag had been torn open by the beavers...

MYERS: Wow!

COSTELLO: ... who rolled thousands of dollars into the sticks of their dam near Greensburg, Louisiana.

MYERS: I bet that was D.B. Cooper's money.

COSTELLO: Actually, the money was from a casino robbery.

MYERS: Oh.

COSTELLO: But those clever beavers.

Finally this morning, how big is your cell phone? A Czech company is hoping to make a splash with this full-sized portable phone. It has all of the features of your home phone, including a speaker and big, old buttons. It also sports a full-sized keyboard for text messaging. So if you're having trouble with those little, tiny gadgets, here is an alternative for you.

MYERS: I got a nice e-mail from Tom in San Jose: "With the advent of this giant cell phone, what could be next? Lime green leisure suits? Oh, the horror."

COSTELLO: I bet you had one of those, didn't you?

MYERS: I did not. I was too young for that.

COSTELLO: Sure, Chad.

"AMERICAN MORNING" starts right now. Thank you for joining us.

MYERS: Have a great day. See you tomorrow. Bye.

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