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CNN Live At Daybreak

Fascinating Finds in Iraq This Morning; House Majority Leader Tom DeLay Protected

Aired November 18, 2004 - 06:00   ET

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

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


CAROL COSTELLO, CNN ANCHOR: Homage to the Clinton years or a disappointing addition to the landscape? Little Rock is talking on this day of the presidential library.
And protecting their own -- Republicans make a controversial move on Capitol Hill.

Then, the blame game heats up as the makers of Vioxx prepare to testify.

It is Thursday.

You are watching DAYBREAK.

And good morning to you.

Thank you for waking up with us.

I'm Carol Costello.

Chad Myers is in Atlanta.

There's a lot going on right now, so let's check the headlines for you.

Britain's honor guard is out in force this morning. French President Jacques Chirac has arrived for a two day summit with Prime Minister Tony Blair. Tensions over the Iraq conflict are expected to top the agenda.

New discoveries in Falluja. Iraqi officials say U.S. troops found two letters in an apparent terrorist safe house. One letter was from terror leader Abu Musab al-Zarqawi. The other was written to him. We'll have a live report from Falluja coming up.

U.S. and Iraqi forces also found what they describe as a bomb making factory in Falluja. In it they discovered an SUV with Texas license plates. They say it has been in the process of being converted into a car bomb.

The U.N. Security Council meets in Kenya today to discuss the ongoing violence and humanitarian crisis in Sudan. It'll meet with experts working to end the fighting in the Darfur region.

And Secretary of State Colin Powell is raising more nuclear worries about Iran. During a trip to Chile, Powell said intelligence suggests Iran is trying to adapt its missiles so that they would be capable of carrying nuclear weapons.

To the forecast center and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Fascinating finds in Iraq this morning. House to house raids in Falluja uncover evidence linked to two wanted terrorists.

CNN's Jane Arraf is embedded with U.S. troops in Falluja.

She's live on the phone with the latest.

Jane -- what did they find?

JANE ARRAF, CNN CORRESPONDENT: Carol, what they found are documents, CDs, computer disks and other evidence that they say links two people who were in this safe house to Abu Musab al-Zarqawi and also to al Qaeda. Now they say that they have seized a letter written to Zarqawi, as well as a letter from him to two of these officials, believed to be foreign fighters. And on the wall is a symbol of al Qaeda.

This is believed to be an indication that these were people involved in the network of Zarqawi after Zarqawi pledged allegiance to Osama bin Laden and al Qaeda.

Now, around there they have found the bodies of some of the men in the house. They have not determined whether these are two of the leaders who were identified in the documents and identified in writing on the walls.

They're in the industrial section, Carol. Just this morning, U.S. Army troops going through door to door, breaking down doors, looking in factories, have found what appears to be a car bomb factory. Now, in there was a brand new Suburban vehicle with a Texas registration sticker, the kind of sticker you have on a new vehicle before it has license plates. It had been in the process of being dismantled and nearby there were bags of chemicals that could have been used for a car bomb, as well as other explosives.

And linking that, as this list just goes on and on, a factory that had anti-aircraft guns, along with diagrams and what appeared to be a little classroom teaching potential students how to take down an aircraft -- Carol.

COSTELLO: Unbelievable.

Of course, there is hope that all of the stuff found in that home or that bomb making factory, I guess it is now, will lead the military to Abu Musab al-Zarqawi.

Is that kind of stuff in there, too, Jane? ARRAF: It could potentially. Now, the greatest resource they usually have is human intelligence. And there hasn't been a huge amount of that. For instance, they've been able to find these factories simply by breaking down literally every door rather than have people tell them where they might be. It's the same, perhaps, with Zarqawi. Although they have detained wounded foreign fighters, wounded fighters who may be linked to his network and detained Iraqi fighters, no indication yet of the kind of intelligence that they are giving up.

But what is important, Carol, is that they seem to have taken down a considerable number of factories that would have been used, were in the process of being used to produce some extremely deadly car bombs and other bombs -- Carol.

COSTELLO: And that is good news.

Jane Arraf reporting live from Falluja this morning.

Thank you.

House Majority Leader Tom DeLay protected. Republicans waste no time in changing a party rule that required GOP House leaders to give up their leadership roles if they are indicted. Democrats are outraged.

Joe Johns fleshes it out for you.

(BEGIN VIDEO TAPE)

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Fearing indictment of Majority Leader Tom DeLay in Texas, loyal rank and file House Republicans moved to protect him from losing power. They see the Texas case, led by a Democratic prosecutor, as politically motivated.

REP. HENRY BONILLA (R), TEXAS: We are trying to protect members of our leadership from any crackpot district attorney in any state in the nation from taking on a political agenda.

JOHNS: House Republicans voted to change a rule that requires members of the leadership to step down, at least temporarily, if under indictment. The new rule says they only have to step down if convicted. In the case of an indictment, a steering committee of Republicans first decides whether the charges are serious enough to require stepping aside. DeLay steadfastly defended the decision.

REP. TOM DELAY (R), MAJORITY LEADER: Democrats have decided that they're going to use politics of personal destruction to gain power. And what we are doing is protecting ourselves from those assaults.

JOHNS: Three of DeLay's associates have been indicted in the Texas case for alleged violations in 2002 of a state law against corporate contributions to political campaigns. DeLay denies wrongdoing and says he hasn't even been questioned in the case. Still, some House Republicans, like Chris Shays of Connecticut, oppose changing the rule because it rolls back a reform they put in place 10 years ago to distinguish themselves from ethical lapses by some top Democrats.

REP. CHRISTOPHER SHAYS (R), CONNECTICUT: I just think it's a slippery slope that we are building momentum in and we're losing our uniqueness and our difference.

JOHNS: Democrats went on the attack.

REP. NANCY PELOSI (D), MINORITY LEADER: That the first order of business following the election on the part of the Republican majority is to lower their ethical standards for their leaders in the Congress by saying that if indicted, you can serve.

JOHNS (on camera): For the record, the rule for House Democrats says committee chairs must step down if indicted, but it doesn't apply to elected party leaders. The office of Congresswoman Nancy Pelosi says she learned of that on Wednesday and now plans to change it.

Joe Johns, CNN, Capitol Hill.

(END VIDEO TAPE)

COSTELLO: New CIA chief Porter Goss isn't playing politics. That's what federal officials are saying. In an e-mail to his staff, Goss used the words "we support the administration." That prompted the "New York Times" to run a headline saying Goss was telling his staff to back President Bush. But the CIA and the White House says that's not what Goss meant. They say he was simply talking about providing assistance, not shaping political policy.

Is President Bush looking to the other side of the aisle to fill out his cabinet? Sources say Democratic Senator Ben Nelson of Nebraska has been approached by Bush's top political adviser, Karl Rove. They say Rove talked to Nelson about becoming the next agriculture secretary. Current Secretary Ann Veneman is one of several Bush cabinet members who are resigning.

And you have to admit, President Bush is quick with a candidate to replace those leaving his administration. Of course, critics say he's surrounding himself with yes men. But now they may be talking to a Democrat.

CNN Radio's Dick Uliano is in Washington to tell us the buzz on the Hill -- good morning, Dick.

DICK ULIANO, CNN RADIO CORRESPONDENT: Good morning to you, Carol, from Washington, where we continue to watch these musical chairs in the president's cabinet.

COSTELLO: You're not...

ULIANO: As for yes men or, you know, whether the president is appointing people who only agree with him, there are two ways to look at it, Carol. Some analysts are saying yes, the president is not going to get a good exchange of views appointing his closest confidants to these cabinet posts. But other analysts, for example, foreign policy analysts, say no, this is a good idea because, for example, Eastern capitals are going to know that the president speaks with one voice. And they know, for example, if they speak to Condi Rice, they have the president's ear, as opposed to Colin Powell, who they regarded as a bit of an outsider in the administration.

COSTELLO: Well, let's talk about this idea of possibly naming a Democrat to fill the seat of agriculture secretary.

Will it happen and why has Karl Rove approached Mr. Nelson?

ULIANO: Carol, two sources are telling CNN that Karl Rove has spoken to Nebraska Democrat Senator Bill Nelson about becoming the agriculture secretary. And it's interesting that, you know, traditionally in American politics, it has not been unusual for presidents to reach across the aisle and pick a member of the opposite party, somebody like Ben Nelson. And as you know, Carol, the treasury secretary, currently Norm Mineta, is a Democrat in the cabinet.

It helps to, you know, reach across the aisle. This had been done traditionally. In recent times it hasn't been too common. President Clinton revived this by appointing Cohen, Bill Cohen, a Democrat, to the Defense Department.

So it's not unusual and it could be done.

Nelson, by the way, refuses to confirm that he's considering a slot in the Bush cabinet.

COSTELLO: But perhaps naming a Democrat to this particular position, secretary of the agriculture, isn't as, well, it doesn't have as far reaching effects, perhaps, in the minds of the American people as, say, the secretary of defense.

ULIANO: Well, I think that's a good point, Carol. Agriculture is, you know, it has somewhat of a low priority, once you get past, for example, mad cow disease, which was a major item on the agriculture secretary's agenda a year ago. But it's like the transportation department. It's kind of a safe agency where you might want a member of the opposite party, who can't do a lot of harm. So that could be the thinking, perhaps.

And it just, in a way it helps politically to balance the president's cabinet to have a member of the opposite party.

COSTELLO: Dick Uliano live from Washington this morning.

Thank you, Dick.

ULIANO: Thank you.

COSTELLO: At the bottom of the hour, CNN political analyst Ron Brownstein joins me to talk about Tom DeLay's dilemma.

The Clinton Presidential Library opens today in Little Rock. The dedication will be a huge, star-studded event attended by a list of who's who in politics and entertainment. The library includes memorabilia collected before and during Clinton's eight years in the White House, and it chronicles the highs and lows of his presidency.

Senator Hillary Rodham Clinton talked about that last night on CNN's "LARRY KING LIVE."

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

LARRY KING, HOST: Everything's covered. The impeachment's covered, Lewinsky is covered?

SEN. HILLARY RODHAM CLINTON (D), NEW YORK: Everything. Everything.

KING: I mean they don't -- you get a full history of Clinton, warts and all.

CLINTON: Yes, yes.

KING: And it...

CLINTON: I like to think, you know, all the good, you know, all of the good progress that was made in those eight years, what he really stood for -- the peace and the prosperity, the, you know, putting people first.

You know, whatever one wants to say about my husband, everybody knows that he really deeply cared about the American people and he did try to do what he could to improve their, you know, chances in life.

(END VIDEO CLIP)

COSTELLO: Coming up in the last hour, we'll talk with the director of the grand opening of the Clinton Presidential Library so be sure to tune in for that.

And stay with CNN throughout the day for coverage of the library's dedication ceremony. That starts up at 12:00 Eastern time.

Well, you saw the Clinton Library building. Some say it looks like a double wide mobile home. We want to know what you think this morning. So our e-mail Question of the Morning -- the Clinton Library, do you love it? Do you hate it? Do you want to visit? E- mail us at daybreak@cnn.com. That's daybreak@cnn.com.

Did the Food and Drug Administration ignore safety concerns about Vioxx? That's what Congress attempts to find out today. We'll have a live report for you ahead.

And Terrell Owens gives the back story on why he agreed to that racy skit that aired ahead of the NFL's "Monday Night Football" game.

And later, could the Kobe Bryant civil case be moved to California? Find out why this could be a good move for his accuser.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 6:16 Eastern.

Here's what's all new this morning.

A car bomb explodes outside of an Iraqi police station. It happened about four hours ago in western Baghdad. Two civilians were killed, six others wounded. Iraqi security forces are the target of almost daily attacks now.

No one has claimed responsibility for three bomb attacks in Argentinean banks. Bombs went off yesterday at three banks in Buenos Aires, including two branches of U.S. giant Citibank. One security guard was killed.

In money news, the Chrysler 300, it's "Motor Trend" magazine's car of the year for 2005. The sedan's been popular with a wide range of buyers, from rappers to grandmothers.

In money news, TiVo has been trying to bolster its ad revenues. The maker of the digital TV video recorder plans to add small pop up billboard. Oh, yes. They'll be seen even as viewers fast forward through standard TV commercials.

In sports, the U.S. men's soccer team has tied Jamaica 1-1 in the World Cup. The U.S. now advances to the regional finals against phenomena.

To the forecast center now and Chad -- good morning.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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

Time now for a little "Business Buzz."

The FBI is warning the public about a new fraud case.

Carrie Lee has the story live from the NASDAQ market site -- good morning, Carrie.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

If it sounds too good to be true, it usually is. That's what people should take away from this. A new twist on what's being called Nigerian fraud. This involves letters written on fake FBI letterhead, some e-mails, as well, that are being sent to businesses throughout the United States. Now, the author claims to be a Nigerian government official saying that he's trying to take millions of dollars illegally out of the country and he's giving the recipient of the letter the opportunity to get in on this get rich quick scheme, basically asking them to first send money to help fund this operation and then claiming that they'll be paid out when these millions of dollars are taken out.

Now, this is not only an example of trying to get money from people, but also part of an effort using people's identities, stealing identities, because the letters eventually will ask for bank name and account numbers, which are then used to drain people's funds.

And this is a big deal. Obviously, some people are falling for this because the Nigerian government has recently set up a commission to fight the crimes. They've also seen this in Canada, the Netherlands, Spain, England and other African countries. So not just the United States.

If you receive one of these letters, Carol, it sounds pretty simple when we're talking about it here, but the language, things like that, can be obviously pretty enticing for some people. So don't send money to someone you don't know.

COSTELLO: Good advice, as always.

Carrie Lee live from the NASDAQ market site.

Will ABC be the next big network fined for its choice of entertainment? Stay with CNN to hear what the chairman of the FCC has to say.

And a scientist for the Food and Drug Administration raised concerns about the arthritis drug Vioxx. Were they ignored?

We're going to have a live report for you just ahead on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: In news across America this morning, police in Boynton Beach, Florida say one of their officers improperly used a taser. The officer has quit after an internal probe found he lied about using the electric stun gun on a handcuffed man.

Scott Peterson's lawyer wants a change of venue and a new jury in the penalty phase of his trial. Peterson was convicted last Friday of killing his wife and their unborn child. He could be sentenced to death or life in prison.

Kobe Bryant may be questioned under oath next month about his encounter with the Colorado woman who accused him of rape. The questioning would be part of her civil lawsuit against the basketball star.

Gary Tuchman has more for you.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: How do you feel about the court starting for the civil case? GARY TUCHMAN, CNN CORRESPONDENT (voice-over): They came without their clients. Both Kobe Bryant's attorneys and the lawyers representing the woman accusing the basketball star of rape met with federal court Judge Richard Matsch, where all declared that it was all systems go for a civil trial. But have there been discussions about a possible financial settlement?

UNIDENTIFIED MALE: Let me tell you, I don't discuss settlements publicly. If we were having it, I wouldn't discuss it. And if we're not having it, I wouldn't discuss it.

TUCHMAN: It was revealed in this first civil hearing that Bryant and his accuser will both undergo videotaped depositions as early as next month. No date has been set for a trial, but the woman's lawyers have said they are considering asking for the case to be moved to a California state court, because there is no maximum limit to financial damages there. But there was not a peep about that from the woman's attorneys to the judge on this day.

UNIDENTIFIED MALE: Good to see you.

UNIDENTIFIED MALE: There's no talk of California at all. Is that still out there?

UNIDENTIFIED MALE: Still out there, absolutely.

UNIDENTIFIED MALE: So it's a possibility you would consider moving the case to California still?

UNIDENTIFIED MALE: It's a possibility we would consider filing a state action in California that would proceed simultaneously with the federal case here.

TUCHMAN (on camera): The 14 month long criminal case is history, the civil case just beginning. Led by a judge who uttered a most interesting judicial understatement when he said that lawyers and other sources informed him that there had, indeed, been previous criminal proceedings in this case.

Gary Tuchman, CNN, Denver.

(END VIDEO TAPE)

COSTELLO: Some locker room talk now. Did you see the racy opening segment of ABC's "Monday Night Football?" Of course you did, or somebody talked to you about it or we showed it to you about 800 times. Of course, it featured an actress from the network's "Desperate Housewives" dropping her towel in front of Philadelphia wide receiver Terrell Owens. Owens is taking the controversy in stride, but FCC Chairman Michael Powell is not.

(BEGIN VIDEO CLIP)

TERRELL OWENS, NFL PLAYER: I don't know how my acting skills were, but, you know, I can't play football forever. So, you know, I'm trying to work on the Hollywood thing. MICHAEL POWELL, FCC CHAIRMAN: I think it's just sort of very disappointing. I wonder if Walt Disney would be proud. It would seem to me that while we get a lot of broadcasting companies complaining about indecency enforcement, they seem to be continuing to be willing to keep the issue at the forefront, keep it hot and steamy in order to get financial gain from the free advertising it provides.

And I, you know, I think companies have to make that decision for themselves.

(END VIDEO CLIP)

COSTELLO: But will ABC have to pay up? ABC has, by the way, apologized for the racy segment.

Were health warnings ignored? Congress wants to know how Vioxx was able to reach consumers even though an FDA scientist raised red flags about the drug.

And changing the rules so a top ranking Republican can stay in power. Republicans move to help Tom DeLay.

You are watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you.

Welcome to DAYBREAK.

There is a lot going on this morning, so let's go right to the headlines, shall we?

Terror related evidence in Iraq. U.S. troops conducting house to house raids in Falluja find what appears to be an abandoned safe house used by insurgents. Inside, letters from and to wanted terrorist mastermind Abu Musab al-Zarqawi and symbols of support for Osama bin Laden were found, as well.

U.S. and Iraqi forces also found what they described as a bomb making factory in Falluja. In it they say they discovered an SUV with Texas license plates. They say it had been in the process of being converted into a car bomb.

Secretary of State Colin Powell is raising more nuclear worries about Iran. Powell says intelligence suggests Iran is trying to adapt its missiles so that they would be capable of carrying nuclear weapons.

And the U.N. Security Council meets in Nairobi today to discuss the ongoing violence and humanitarian crisis in Sudan. At that meeting, John Danforth, the U.S. ambassador to the U.N., said a peace deal between warring factions in Sudan will be finalized before the year is out.

To the forecast center now and Chad -- good morning. MYERS: Good morning, Carol.

(WEATHER REPORT)

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Aired November 18, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Homage to the Clinton years or a disappointing addition to the landscape? Little Rock is talking on this day of the presidential library.
And protecting their own -- Republicans make a controversial move on Capitol Hill.

Then, the blame game heats up as the makers of Vioxx prepare to testify.

It is Thursday.

You are watching DAYBREAK.

And good morning to you.

Thank you for waking up with us.

I'm Carol Costello.

Chad Myers is in Atlanta.

There's a lot going on right now, so let's check the headlines for you.

Britain's honor guard is out in force this morning. French President Jacques Chirac has arrived for a two day summit with Prime Minister Tony Blair. Tensions over the Iraq conflict are expected to top the agenda.

New discoveries in Falluja. Iraqi officials say U.S. troops found two letters in an apparent terrorist safe house. One letter was from terror leader Abu Musab al-Zarqawi. The other was written to him. We'll have a live report from Falluja coming up.

U.S. and Iraqi forces also found what they describe as a bomb making factory in Falluja. In it they discovered an SUV with Texas license plates. They say it has been in the process of being converted into a car bomb.

The U.N. Security Council meets in Kenya today to discuss the ongoing violence and humanitarian crisis in Sudan. It'll meet with experts working to end the fighting in the Darfur region.

And Secretary of State Colin Powell is raising more nuclear worries about Iran. During a trip to Chile, Powell said intelligence suggests Iran is trying to adapt its missiles so that they would be capable of carrying nuclear weapons.

To the forecast center and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Fascinating finds in Iraq this morning. House to house raids in Falluja uncover evidence linked to two wanted terrorists.

CNN's Jane Arraf is embedded with U.S. troops in Falluja.

She's live on the phone with the latest.

Jane -- what did they find?

JANE ARRAF, CNN CORRESPONDENT: Carol, what they found are documents, CDs, computer disks and other evidence that they say links two people who were in this safe house to Abu Musab al-Zarqawi and also to al Qaeda. Now they say that they have seized a letter written to Zarqawi, as well as a letter from him to two of these officials, believed to be foreign fighters. And on the wall is a symbol of al Qaeda.

This is believed to be an indication that these were people involved in the network of Zarqawi after Zarqawi pledged allegiance to Osama bin Laden and al Qaeda.

Now, around there they have found the bodies of some of the men in the house. They have not determined whether these are two of the leaders who were identified in the documents and identified in writing on the walls.

They're in the industrial section, Carol. Just this morning, U.S. Army troops going through door to door, breaking down doors, looking in factories, have found what appears to be a car bomb factory. Now, in there was a brand new Suburban vehicle with a Texas registration sticker, the kind of sticker you have on a new vehicle before it has license plates. It had been in the process of being dismantled and nearby there were bags of chemicals that could have been used for a car bomb, as well as other explosives.

And linking that, as this list just goes on and on, a factory that had anti-aircraft guns, along with diagrams and what appeared to be a little classroom teaching potential students how to take down an aircraft -- Carol.

COSTELLO: Unbelievable.

Of course, there is hope that all of the stuff found in that home or that bomb making factory, I guess it is now, will lead the military to Abu Musab al-Zarqawi.

Is that kind of stuff in there, too, Jane? ARRAF: It could potentially. Now, the greatest resource they usually have is human intelligence. And there hasn't been a huge amount of that. For instance, they've been able to find these factories simply by breaking down literally every door rather than have people tell them where they might be. It's the same, perhaps, with Zarqawi. Although they have detained wounded foreign fighters, wounded fighters who may be linked to his network and detained Iraqi fighters, no indication yet of the kind of intelligence that they are giving up.

But what is important, Carol, is that they seem to have taken down a considerable number of factories that would have been used, were in the process of being used to produce some extremely deadly car bombs and other bombs -- Carol.

COSTELLO: And that is good news.

Jane Arraf reporting live from Falluja this morning.

Thank you.

House Majority Leader Tom DeLay protected. Republicans waste no time in changing a party rule that required GOP House leaders to give up their leadership roles if they are indicted. Democrats are outraged.

Joe Johns fleshes it out for you.

(BEGIN VIDEO TAPE)

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Fearing indictment of Majority Leader Tom DeLay in Texas, loyal rank and file House Republicans moved to protect him from losing power. They see the Texas case, led by a Democratic prosecutor, as politically motivated.

REP. HENRY BONILLA (R), TEXAS: We are trying to protect members of our leadership from any crackpot district attorney in any state in the nation from taking on a political agenda.

JOHNS: House Republicans voted to change a rule that requires members of the leadership to step down, at least temporarily, if under indictment. The new rule says they only have to step down if convicted. In the case of an indictment, a steering committee of Republicans first decides whether the charges are serious enough to require stepping aside. DeLay steadfastly defended the decision.

REP. TOM DELAY (R), MAJORITY LEADER: Democrats have decided that they're going to use politics of personal destruction to gain power. And what we are doing is protecting ourselves from those assaults.

JOHNS: Three of DeLay's associates have been indicted in the Texas case for alleged violations in 2002 of a state law against corporate contributions to political campaigns. DeLay denies wrongdoing and says he hasn't even been questioned in the case. Still, some House Republicans, like Chris Shays of Connecticut, oppose changing the rule because it rolls back a reform they put in place 10 years ago to distinguish themselves from ethical lapses by some top Democrats.

REP. CHRISTOPHER SHAYS (R), CONNECTICUT: I just think it's a slippery slope that we are building momentum in and we're losing our uniqueness and our difference.

JOHNS: Democrats went on the attack.

REP. NANCY PELOSI (D), MINORITY LEADER: That the first order of business following the election on the part of the Republican majority is to lower their ethical standards for their leaders in the Congress by saying that if indicted, you can serve.

JOHNS (on camera): For the record, the rule for House Democrats says committee chairs must step down if indicted, but it doesn't apply to elected party leaders. The office of Congresswoman Nancy Pelosi says she learned of that on Wednesday and now plans to change it.

Joe Johns, CNN, Capitol Hill.

(END VIDEO TAPE)

COSTELLO: New CIA chief Porter Goss isn't playing politics. That's what federal officials are saying. In an e-mail to his staff, Goss used the words "we support the administration." That prompted the "New York Times" to run a headline saying Goss was telling his staff to back President Bush. But the CIA and the White House says that's not what Goss meant. They say he was simply talking about providing assistance, not shaping political policy.

Is President Bush looking to the other side of the aisle to fill out his cabinet? Sources say Democratic Senator Ben Nelson of Nebraska has been approached by Bush's top political adviser, Karl Rove. They say Rove talked to Nelson about becoming the next agriculture secretary. Current Secretary Ann Veneman is one of several Bush cabinet members who are resigning.

And you have to admit, President Bush is quick with a candidate to replace those leaving his administration. Of course, critics say he's surrounding himself with yes men. But now they may be talking to a Democrat.

CNN Radio's Dick Uliano is in Washington to tell us the buzz on the Hill -- good morning, Dick.

DICK ULIANO, CNN RADIO CORRESPONDENT: Good morning to you, Carol, from Washington, where we continue to watch these musical chairs in the president's cabinet.

COSTELLO: You're not...

ULIANO: As for yes men or, you know, whether the president is appointing people who only agree with him, there are two ways to look at it, Carol. Some analysts are saying yes, the president is not going to get a good exchange of views appointing his closest confidants to these cabinet posts. But other analysts, for example, foreign policy analysts, say no, this is a good idea because, for example, Eastern capitals are going to know that the president speaks with one voice. And they know, for example, if they speak to Condi Rice, they have the president's ear, as opposed to Colin Powell, who they regarded as a bit of an outsider in the administration.

COSTELLO: Well, let's talk about this idea of possibly naming a Democrat to fill the seat of agriculture secretary.

Will it happen and why has Karl Rove approached Mr. Nelson?

ULIANO: Carol, two sources are telling CNN that Karl Rove has spoken to Nebraska Democrat Senator Bill Nelson about becoming the agriculture secretary. And it's interesting that, you know, traditionally in American politics, it has not been unusual for presidents to reach across the aisle and pick a member of the opposite party, somebody like Ben Nelson. And as you know, Carol, the treasury secretary, currently Norm Mineta, is a Democrat in the cabinet.

It helps to, you know, reach across the aisle. This had been done traditionally. In recent times it hasn't been too common. President Clinton revived this by appointing Cohen, Bill Cohen, a Democrat, to the Defense Department.

So it's not unusual and it could be done.

Nelson, by the way, refuses to confirm that he's considering a slot in the Bush cabinet.

COSTELLO: But perhaps naming a Democrat to this particular position, secretary of the agriculture, isn't as, well, it doesn't have as far reaching effects, perhaps, in the minds of the American people as, say, the secretary of defense.

ULIANO: Well, I think that's a good point, Carol. Agriculture is, you know, it has somewhat of a low priority, once you get past, for example, mad cow disease, which was a major item on the agriculture secretary's agenda a year ago. But it's like the transportation department. It's kind of a safe agency where you might want a member of the opposite party, who can't do a lot of harm. So that could be the thinking, perhaps.

And it just, in a way it helps politically to balance the president's cabinet to have a member of the opposite party.

COSTELLO: Dick Uliano live from Washington this morning.

Thank you, Dick.

ULIANO: Thank you.

COSTELLO: At the bottom of the hour, CNN political analyst Ron Brownstein joins me to talk about Tom DeLay's dilemma.

The Clinton Presidential Library opens today in Little Rock. The dedication will be a huge, star-studded event attended by a list of who's who in politics and entertainment. The library includes memorabilia collected before and during Clinton's eight years in the White House, and it chronicles the highs and lows of his presidency.

Senator Hillary Rodham Clinton talked about that last night on CNN's "LARRY KING LIVE."

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

LARRY KING, HOST: Everything's covered. The impeachment's covered, Lewinsky is covered?

SEN. HILLARY RODHAM CLINTON (D), NEW YORK: Everything. Everything.

KING: I mean they don't -- you get a full history of Clinton, warts and all.

CLINTON: Yes, yes.

KING: And it...

CLINTON: I like to think, you know, all the good, you know, all of the good progress that was made in those eight years, what he really stood for -- the peace and the prosperity, the, you know, putting people first.

You know, whatever one wants to say about my husband, everybody knows that he really deeply cared about the American people and he did try to do what he could to improve their, you know, chances in life.

(END VIDEO CLIP)

COSTELLO: Coming up in the last hour, we'll talk with the director of the grand opening of the Clinton Presidential Library so be sure to tune in for that.

And stay with CNN throughout the day for coverage of the library's dedication ceremony. That starts up at 12:00 Eastern time.

Well, you saw the Clinton Library building. Some say it looks like a double wide mobile home. We want to know what you think this morning. So our e-mail Question of the Morning -- the Clinton Library, do you love it? Do you hate it? Do you want to visit? E- mail us at daybreak@cnn.com. That's daybreak@cnn.com.

Did the Food and Drug Administration ignore safety concerns about Vioxx? That's what Congress attempts to find out today. We'll have a live report for you ahead.

And Terrell Owens gives the back story on why he agreed to that racy skit that aired ahead of the NFL's "Monday Night Football" game.

And later, could the Kobe Bryant civil case be moved to California? Find out why this could be a good move for his accuser.

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

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COSTELLO: Your news, money, weather and sports.

It is 6:16 Eastern.

Here's what's all new this morning.

A car bomb explodes outside of an Iraqi police station. It happened about four hours ago in western Baghdad. Two civilians were killed, six others wounded. Iraqi security forces are the target of almost daily attacks now.

No one has claimed responsibility for three bomb attacks in Argentinean banks. Bombs went off yesterday at three banks in Buenos Aires, including two branches of U.S. giant Citibank. One security guard was killed.

In money news, the Chrysler 300, it's "Motor Trend" magazine's car of the year for 2005. The sedan's been popular with a wide range of buyers, from rappers to grandmothers.

In money news, TiVo has been trying to bolster its ad revenues. The maker of the digital TV video recorder plans to add small pop up billboard. Oh, yes. They'll be seen even as viewers fast forward through standard TV commercials.

In sports, the U.S. men's soccer team has tied Jamaica 1-1 in the World Cup. The U.S. now advances to the regional finals against phenomena.

To the forecast center now and Chad -- good morning.

MYERS: Good morning, Carol.

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

Time now for a little "Business Buzz."

The FBI is warning the public about a new fraud case.

Carrie Lee has the story live from the NASDAQ market site -- good morning, Carrie.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

If it sounds too good to be true, it usually is. That's what people should take away from this. A new twist on what's being called Nigerian fraud. This involves letters written on fake FBI letterhead, some e-mails, as well, that are being sent to businesses throughout the United States. Now, the author claims to be a Nigerian government official saying that he's trying to take millions of dollars illegally out of the country and he's giving the recipient of the letter the opportunity to get in on this get rich quick scheme, basically asking them to first send money to help fund this operation and then claiming that they'll be paid out when these millions of dollars are taken out.

Now, this is not only an example of trying to get money from people, but also part of an effort using people's identities, stealing identities, because the letters eventually will ask for bank name and account numbers, which are then used to drain people's funds.

And this is a big deal. Obviously, some people are falling for this because the Nigerian government has recently set up a commission to fight the crimes. They've also seen this in Canada, the Netherlands, Spain, England and other African countries. So not just the United States.

If you receive one of these letters, Carol, it sounds pretty simple when we're talking about it here, but the language, things like that, can be obviously pretty enticing for some people. So don't send money to someone you don't know.

COSTELLO: Good advice, as always.

Carrie Lee live from the NASDAQ market site.

Will ABC be the next big network fined for its choice of entertainment? Stay with CNN to hear what the chairman of the FCC has to say.

And a scientist for the Food and Drug Administration raised concerns about the arthritis drug Vioxx. Were they ignored?

We're going to have a live report for you just ahead on DAYBREAK.

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COSTELLO: In news across America this morning, police in Boynton Beach, Florida say one of their officers improperly used a taser. The officer has quit after an internal probe found he lied about using the electric stun gun on a handcuffed man.

Scott Peterson's lawyer wants a change of venue and a new jury in the penalty phase of his trial. Peterson was convicted last Friday of killing his wife and their unborn child. He could be sentenced to death or life in prison.

Kobe Bryant may be questioned under oath next month about his encounter with the Colorado woman who accused him of rape. The questioning would be part of her civil lawsuit against the basketball star.

Gary Tuchman has more for you.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: How do you feel about the court starting for the civil case? GARY TUCHMAN, CNN CORRESPONDENT (voice-over): They came without their clients. Both Kobe Bryant's attorneys and the lawyers representing the woman accusing the basketball star of rape met with federal court Judge Richard Matsch, where all declared that it was all systems go for a civil trial. But have there been discussions about a possible financial settlement?

UNIDENTIFIED MALE: Let me tell you, I don't discuss settlements publicly. If we were having it, I wouldn't discuss it. And if we're not having it, I wouldn't discuss it.

TUCHMAN: It was revealed in this first civil hearing that Bryant and his accuser will both undergo videotaped depositions as early as next month. No date has been set for a trial, but the woman's lawyers have said they are considering asking for the case to be moved to a California state court, because there is no maximum limit to financial damages there. But there was not a peep about that from the woman's attorneys to the judge on this day.

UNIDENTIFIED MALE: Good to see you.

UNIDENTIFIED MALE: There's no talk of California at all. Is that still out there?

UNIDENTIFIED MALE: Still out there, absolutely.

UNIDENTIFIED MALE: So it's a possibility you would consider moving the case to California still?

UNIDENTIFIED MALE: It's a possibility we would consider filing a state action in California that would proceed simultaneously with the federal case here.

TUCHMAN (on camera): The 14 month long criminal case is history, the civil case just beginning. Led by a judge who uttered a most interesting judicial understatement when he said that lawyers and other sources informed him that there had, indeed, been previous criminal proceedings in this case.

Gary Tuchman, CNN, Denver.

(END VIDEO TAPE)

COSTELLO: Some locker room talk now. Did you see the racy opening segment of ABC's "Monday Night Football?" Of course you did, or somebody talked to you about it or we showed it to you about 800 times. Of course, it featured an actress from the network's "Desperate Housewives" dropping her towel in front of Philadelphia wide receiver Terrell Owens. Owens is taking the controversy in stride, but FCC Chairman Michael Powell is not.

(BEGIN VIDEO CLIP)

TERRELL OWENS, NFL PLAYER: I don't know how my acting skills were, but, you know, I can't play football forever. So, you know, I'm trying to work on the Hollywood thing. MICHAEL POWELL, FCC CHAIRMAN: I think it's just sort of very disappointing. I wonder if Walt Disney would be proud. It would seem to me that while we get a lot of broadcasting companies complaining about indecency enforcement, they seem to be continuing to be willing to keep the issue at the forefront, keep it hot and steamy in order to get financial gain from the free advertising it provides.

And I, you know, I think companies have to make that decision for themselves.

(END VIDEO CLIP)

COSTELLO: But will ABC have to pay up? ABC has, by the way, apologized for the racy segment.

Were health warnings ignored? Congress wants to know how Vioxx was able to reach consumers even though an FDA scientist raised red flags about the drug.

And changing the rules so a top ranking Republican can stay in power. Republicans move to help Tom DeLay.

You are watching DAYBREAK.

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COSTELLO: And good morning to you.

Welcome to DAYBREAK.

There is a lot going on this morning, so let's go right to the headlines, shall we?

Terror related evidence in Iraq. U.S. troops conducting house to house raids in Falluja find what appears to be an abandoned safe house used by insurgents. Inside, letters from and to wanted terrorist mastermind Abu Musab al-Zarqawi and symbols of support for Osama bin Laden were found, as well.

U.S. and Iraqi forces also found what they described as a bomb making factory in Falluja. In it they say they discovered an SUV with Texas license plates. They say it had been in the process of being converted into a car bomb.

Secretary of State Colin Powell is raising more nuclear worries about Iran. Powell says intelligence suggests Iran is trying to adapt its missiles so that they would be capable of carrying nuclear weapons.

And the U.N. Security Council meets in Nairobi today to discuss the ongoing violence and humanitarian crisis in Sudan. At that meeting, John Danforth, the U.S. ambassador to the U.N., said a peace deal between warring factions in Sudan will be finalized before the year is out.

To the forecast center now and Chad -- good morning. MYERS: Good morning, Carol.

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