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Military Strain; Evidence Found in Falluja; Flight Attendants Airing Grievance

Aired November 18, 2004 - 07:31   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.


SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody. It's just about half past the hour on this AMERICAN MORNING.
The big question today: Is the U.S. military being pushed to its limits in Iraq? Top commanders have been weighing in on that critical question. We'll get the answer from Barbara Starr in just a moment.

BILL HEMMER, CNN ANCHOR: Also, some airlines are in deep financial trouble. We know that already. But more problems potentially now if flight attendants go on strike. Their union is talking about it. They're threatening. We'll look at the possible impact on holiday travel this year. And also there's a question here of whether or not it's even legal for them to do this. So it could have a significant impact. Andy was talking about this yesterday. So we'll get to that in a moment here.

O'BRIEN: Before any of that, though, let's check on the stories "Now in the News." Carol Costello is with us.

Hello. Making the move up from Atlanta. Nice to have you in the flesh.

CAROL COSTELLO, CNN ANCHOR: I know. I just jogged down six blocks from the Time Warner Building. So if I'm a little out of breath...

O'BRIEN: Carol, you've got to get a cab.

COSTELLO: I'll learn to do that, I'm sure.

"Now in the News." Good morning everyone.

Israeli forces are apologizing for the killing of three Egyptian policemen. The Israeli army says the men were mistaken for a terrorist cell operating near the border with Egypt. Israeli Prime Minister Ariel Sharon has apparently called Egyptian President Hosni Mubarak expressing his deepest apologies for the incident.

French President Jacques Chirac is in London this morning for two days of talks with British Prime Minister Tony Blair. After their meeting at 10 Downing Street, the leaders will hold a joint news conference in the next hour. Chirac will also attend a banquet at Windsor Castle hosted by Britain's Queen Elizabeth.

Here in the United States, Scott Peterson's defense is asking for another change of venue and a new jury for his penalty phase. No reasons have been given for why attorney Mark Geragos filed these motions. The judge will make a decision on Monday. That's when arguments in the penalty phase are set to begin. Peterson could be sentenced to death or life in prison.

And some Democratic Party leaders are asking why Senator John Kerry reportedly has millions left over from his campaign war chest, money they say could have been used to help other Democratic candidates. Reports say Kerry ended his White House bid with more than $15 million, but the money is apparently from his privately- funded campaign. A spokeswoman for Kerry says once all of the bills are paid, whatever is left over will be used for the Democratic Party.

Back to you.

HEMMER: In an election that close, don't leave it on the table, huh? That's what the Democrats are saying down in D.C. We're going to talk about it in our next hour in our "Political Jab" segment. So we'll get to it then.

And welcome to New York. You have a huge new life. You got married. You moved to the city.

O'BRIEN: Yes, a busy couple of months.

HEMMER: Man, you thought you were busy!

O'BRIEN: No, no. She's busier.

COSTELLO: No, I think Soledad's life is much more stressful.

O'BRIEN: We can sit down and have coffee later and talk about who has got the worst life.

COLLINS: We'll bump it a little stronger.

O'BRIEN: OK, I'm in. Thanks, Carol.

HEMMER: We'll have something stronger.

Well, the Pentagon is currently spending billions of dollars a month to fight the war in Iraq, but some military officials say that is not enough to properly equip the current troops or to recruit new ones as well.

To the Pentagon and Barbara Starr watching this story this morning.

And good morning there -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Bill.

Well, the war in Iraq now costing more than $5 billion a month. And the Joint Chiefs of Staff were on Capitol Hill yesterday offering some of the incredible statistics that demonstrate the strain on the force and the equipment. First of all, the Army, 110,000 soldiers serving in Iraq. Look at this statistic alone. The Army has manufactured 400,000 sets of body armor, those vests, helmets and pads. They are still making 25,000 a month, but they need 370,000 more sets of body armor.

In the last 15 months alone, the fleet of 250 armored Humvees has grown to 5,000. But they need 3,00 more.

And the Marines, which are certainly doing the heavy fighting in Falluja, the commandant of the Marine Corps talked about how his force is being stretched.

(BEGIN VIDEO CLIP)

GEN. MICHAEL W. HAGEE, COMMANDANT, U.S. MARINE CORPS: Currently, 30 percent of the Marine Corps ground equipment and 25 percent of our aviation equipment is deployed in theater and experiencing significant use in one of the harshest climates on the planet. The additional cost to support our combat operations, intermediate and depo (ph) level repairs, combat losses and sustainment is approximately $8 billion to $10 billion.

(END VIDEO CLIP)

STARR: Now, General Hagee offering one very interesting statistic. One Marine unit in Iraq in one year used its equipment so heavily it was actually the equivalent of 13 years of equipment use all compressed into one year.

And, of course, there is a human cost to all of this as well. The commandant of the Marine Corps reminded everyone that before Falluja, 23 Marines and sailors treated on average at Bethesda Navy Hospital as inpatients. Right now, the naval hospital has 100 patients, and more than 800 Army soldiers have lost their lives in this war in Iraq -- Bill.

HEMMER: Barbara, thanks. Barbara Starr at the Pentagon.

To that same hearing, the subject of journalists embedded with the troops in Iraq came up. We've talked a lot about this issue, especially yesterday. Well over 1,000 e-mails to our program here regarding that Marine shooting of an unarmed Iraqi inside of a mosque.

One U.S. Marine general was asked about what he thought about the embed program using reporters. Here's how it went down.

(BEGIN VIDEO CLIP)

REP. SILVESTRE REYES (D), TEXAS: I don't think it's a god idea to have embedded reporters in combat to the extent that we have them.

HAGEE: I understand the concern about embedded reporters. Obviously, I know the incident you're talking about. But, sir, in my personal opinion, embedded reporters have actually worked very well. They inform the American public about what these great young Americans are doing over there. And the large, large majority are doing, as you have -- as the members here have already articulated, are doing a tremendous job. And the American press is an important part of getting that information out.

(END VIDEO CLIP)

HEMMER: That from Congress yesterday.

The Marine involved in the shooting has been withdrawn from the battlefield until an investigation there in Iraq is completed on that case -- Soledad.

O'BRIEN: Well, Jane Arraf is embedded with the Army's 1st I.D., and she is reporting from Falluja today. U.S. forces in Falluja may, in fact, have come across significant information about insurgents loyal to both al Qaeda and also wanted-terrorist Abu al-Zarqawi.

Let's go right to Jane Arraf from Camp Falluja this morning.

Jane -- good morning.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Good morning, Soledad.

Well, officials tell us this likely won't point them to where Zarqawi might be, if he is anywhere, or inform them of his future operations. But what it does tell them is that he was a significant presence in Falluja.

And this is a house that we were taken to this morning. It has had bombs dropped on and near it, 500-pound bombs. There are bodies lying around.

But inside, they have retrieved documents, including, they tell us, a letter from Zarqawi to two of his lieutenants, believed to be leaders of the Zarqawi network in that neighborhood. There is also a letter -- two letters written to Zarqawi himself from these men asking for money and asking for other help.

On the wall as we walked in there was a symbol of al Qaeda drawn on a very bare wall. And everywhere evidence that whatever happened to these men had happened very quickly. There was food scattered on the floor, documents, a computer. The hard drive had been taken out of the computer, but there were CDs and other disks there as well.

And in the industrial section of Falluja, Soledad, more discoveries, including a suspected car bomb-making factory inside this ordinary looking building. We saw an American SUV-style vehicle with a brand new sticker Texas registration on it, license plates, a variety of license plates nearby, and bags and bags of chemicals that the military believes would have been used to stuff into that car, which was in the process of being dismantled -- Soledad.

O'BRIEN: A shocking discovery. Jane Arraf for us this morning. Jane, thanks -- Bill.

HEMMER: On a much different matter back in this country, FCC Chairman Michael Powell weighing in on that brouhaha that followed "Monday Night Football," this incident on ABC.. In a pre-game skit, sexy Nicolette Sheridan playing her character from the ABC hit, "Desperate Housewives," seducing Philadelphia Eagles star Terrell Owens in the locker room before the game.

(BEGIN VIDEO CLIP)

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

(END VIDEO CLIP)

HEMMER: Again, Michael Powell on that topic. Both ABC and the NFL have apologized. I just wonder whether or not the skit was any more risque than many other primetime shows, the daytime soap operas. This story lives for another day, Soledad, does it not?

O'BRIEN: They're all worrying about the same, which is a whole lot of nothing. But the story continues, as Bill says.

(WEATHER REPORT)

HEMMER: Jack is on assignment today.

O'BRIEN: Do you know when it says "on assignment," you're not on assignment.

(CROSSTALK)

HEMMER: What do you think he's doing?

O'BRIEN: I have no idea. And you know what? He's probably just hanging out.

HEMMER: It says he's on assignment.

O'BRIEN: But he is so not.

HEMMER: And you...

O'BRIEN: Whenever they say they're on assignment, they're not on assignment. That's what...

O'BRIEN: She's going to have a very tough day tomorrow.

TOURE, CNN POP CULTURE CORRESPONDENT: Whew! I'm glad I'm not going to be here.

O'BRIEN: Bring it on! Bring it on!

HEMMER: Twice in 42 minutes. What's happening, Toure? Good morning and welcome back. TOURE: Hey, I want to go and get drinks with you guys when you're hanging out and (UNINTELLIGIBLE) and all of that.

O'BRIEN: On who is busier?

TOURE: Yes, I want to be...

O'BRIEN: That will be fun conversation.

TOURE: I want to be down with that.

O'BRIEN: Sure, you're in, yes.

TOURE: So, I was at "TIME" magazine's brunch for the person of the year earlier this week. It was really cool. And it featured a debate over who should be the person of the year, the newsmaker who had the greatest influence on the events of the past annum.

Now, in my mind, there is no way they could pick anyone but Karl Rove. He read the country perfectly, was the architect of the election, which was the biggest news story of the year.

Some at the brunch argued that the president should win, but a more interesting suggestion was perhaps God, considering the way that the president, the pivotal evangelicals and the terrorists all employ God toward their own ends.

O'BRIEN: Interesting.

TOURE: Al Sharpton was there, and he said he'd love to see God win, because he'd love to see the picture. So...

O'BRIEN: So he could complain about it.

TOURE: Right. Someone else suggested a split cover with Michael Moore and Mel Gibson, the filmmakers of the year. And somehow Janet Jackson was left out of the discussion completely.

"TIME" will announce its choice on December 19th with a 30-minute special here on CNN. But why not short-circuit the process and tell us who's going to win...

HEMMER: Sure.

TOURE: ... or who should win "TIME's" person of the year.

Our "Question of the Day": Who should be "TIME" magazine's person of the year? E-mail us now at AM@CNN.com. You've got my vote, Bill Hemmer.

HEMMER: What's your vote?

O'BRIEN: He said, Karl Rove.

TOURE: Karl Rove.

HEMMER: Oh.

TOURE: It's got to be Karl Rove.

HEMMER: Others have said that. Al Sharpton said that the other day, too, apparently at this thing.

TOURE: Yes.

HEMMER: And Brian Williams came back and said something like, well, why don't you name Harry Hopkins man of the year?

TOURE: Well, even Harry Hopkins... HEMMER: And everyone said, "Who is Harry Hopkins?" Harry Hopkins was, like, FDR's right-hand man for 12 or 14 years.

TOURE: Right.

O'BRIEN: (UNINTELLIGIBLE) on that? Not quite.

HEMMER: No successful politician is ever good without a great operative behind him or her.

TOURE: Especially now in the media era.

HEMMER: I would probably go with George Bush.

TOURE: Why?

HEMMER: I think he has had more influence...

O'BRIEN: (UNINTELLIGIBLE) in Iraq.

HEMMER: Yes, we are. I think he's had more influence, not just in this country, but the events of the world more so than anyone else in the past 12 months.

TOURE: Why Bush over Rove?

O'BRIEN: Hello. We're getting a rap.

TOURE: I'm out of here.

O'BRIEN: We're going to have to hold that off until the next segment.

HEMMER: We will...

O'BRIEN: You guys can chat later.

TOURE: We'll talk later.

O'BRIEN: Our producer is yelling.

HEMMER: But I thought -- OK. Thanks, Toure.

O'BRIEN: More to talk about, obvious. Thank you, Toure. HEMMER: In a moment here, it looks like one of TiVo's most popular features is going to be a thing of the past. Andy talks about that.

O'BRIEN: Also ahead this morning, could your holiday travel plans be affected by a flight attendants' strike? We're to check in with an editor from "Travel & Leisure" magazine. Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: There is this strike by airline flight attendants that could wreak havoc on the holiday travel season; 46,000 member union claims that airlines are using the bankruptcy process to nullify the labor contracts. Flight attendants are now deciding whether or not to strike at United, US Airways, ATA and Hawaiian Airlines.

Nathan Lump is with "Travel & Leisure" magazine. He's here to talk about the potential impact of this.

Nice to see you, Nathan. Good morning to you.

NATHAN LUMP, "TRAVEL & LEISURE": Thanks, Bill.

HEMMER: Yesterday at this time Andy Serwer came in and said this could be a significant business and travel story. How significant in your estimation?

LUMP: It's a big story, if it happens. Certainly the airlines, as we all know, are in trouble. You know, could they sustain a strike? Probably not.

Now, the good news is that a strike is probably unlikely. But it's a major story in terms of what it says about where the airlines are going. Ultimately, we're looking at kind of last-ditch efforts on both sides. The flight attendants know they don't -- it's not a good thing for them to strike. The airlines know that they can't sustain a strike. But both sides are not willing to back down, because they're both in trouble.

HEMMER: Now, you put two qualifiers in that answer. You said if and it probably will not happen anyway. You don't believe this will take place? Is it then just a threat?

LUMP: I think it's a serious threat, but I think it's unlikely to happen. There are a number of things that have got to happen in order for a strike to go forward.

HEMMER: Such as?

LUMP: First of all, we're looking at what happens in the US Airways bankruptcy proceedings. December 2nd, the judge is going to hear the case about whether US Airways can nullify its contract with the labor union. If the judge says that that can't happen, then that defuses this whole issue. Now, if the judge says it does, then there's the question of whether the 1926 Railroad Labor Act applies in this case. Legal experts are divided. There is no exact precedent for this, because the laws have changed since the last time this happened in 1983.

So, what we're looking at is most experts, though, do say that the Railroad Labor Act probably will apply. If it does, then we're looking at national mediation board. We're looking at 30-day cooling- off period. And the president can still get involved even if the flight attendants vote to go forward after this whole process.

HEMMER: I don't want to get too ahead of the story here, but what would happen to some of these airlines, like United, like US Air, if they were to face a significant labor disruption?

LUMP: If a strike goes on for any length of time, obviously the airlines face serious cash flow problems. So, they probably can't sustain strikes for any length of time.

HEMMER: The president of the union had this to say. Listen to this real quick, and then I want to ask you about it.

(BEGIN VIDEO CLIP)

PATRICIA FRIEND, PRES., ASSN. OF FLIGHT ATTENDANTS: On the day that the first flight attendant contract is thrown out by a bankruptcy judge in this country, we will call on every AFA member, every flight attendant in this country represented by AFA or another union, and on every flight attendant around the world to go on strike.

(END VIDEO CLIP)

HEMMER: Pretty tough words. It's probably her job, though, as head of the union to give tough words at a time like this...

LUMP: Of course.

HEMMER: ... when you're trying to negotiate sometimes in public.

LUMP: Yes.

HEMMER: For a consumer who's making plans over the holiday season, maybe Christmas or New Year's, should they be concerned about this story today?

LUMP: I say don't panic. We're looking at basically this is something that's going to be played out in 2005. So, I think don't alter your holiday travel plans at this point. Watch the issue, see how it unfolds. But basically, in the short term we're not looking at action here.

HEMMER: Thanks, Nathan. Good to see you.

LUMP: Thank you.

HEMMER: Nathan Lump with "Travel & Leisure" magazine here in New York.

Back to Soledad now.

O'BRIEN: Tourists and commuters were stranded yesterday in the nation's capital by a surprise taxicab strike. Many drivers refused to pick up passengers for 12 hours. The cabbies are protesting Mayor Tony Williams' plan to abolish the city's Taxicab Commission and shift authority to the D.C. Department of Transportation. The cabbies are threatening more strikes.

Still to come this morning, TiVo says it's a TV lover's dream, but it may soon be a dream for advertisers, too. Andy is going to explain. He's "Minding Your Business" just ahead as we continue right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Business news now, a little preview of the action on Wall Street, and if you like to TiVo through those commercials, listen up. It's going to end. It's a case of couch commerce. Andy Serwer explains.

Hello.

ANDY SERWER, "FORTUNE" MAGAZINE: Hello. Ouch commerce maybe.

O'BRIEN: Ouch and couch.

SERWER: Yes, exactly. Let's talk about the markets a little bit. Yesterday getting a big boost from that Kmart-Sears deal. Dow was up 62 points. Nasdaq up as well, you can see here. So was the S&P 500. A lot of stocks -- Sears, Kmart, Whirlpool, Martha Stewart all up on the news.

One stock we'll be looking at this morning, though, Soledad, is Google. It is now at $172. The company this morning warning that its growth will be slowing down, putting downward pressure on its profit margins. Some would say this is an interesting time to be announcing that, because they've just had an expiration of a lockup period, meaning insiders could sell their shares. That was a couple days ago. And now they're suggesting perhaps growth is slowing. So we'll be paying attention to that stock this morning.

O'BRIEN: What about this TiVo story?

SERWER: Yes. This is interesting. You know, for years TiVo has been the enemy of Madison Avenue, because people would...

O'BRIEN: Click through commercials.

SERWER: ... TiVo and they would zap right through the commercials. Well, starting next March, TiVo is going to be rolling out a system, where they're going to be billboards or small logos, so on those commercials, even if you zap through them, so you're zapping through something. And it will still say, you know, Crest toothpaste potentially, so you'll still see that logo. And then ultimately, you'll be able to sort of click on that logo and engage in commerce.

So, TiVo used to be the enemy of advertisers, and now it looks like they're kind of coming together. Also going to be providing surveying information to advertisers.

O'BRIEN: So they figured out a way to do a deal with the advertisers...

SERWER: Yes, indeed.

O'BRIEN: ... to make a little -- I'm getting cynical in my old age, Andy.

SERWER: Yes, you and me both.

O'BRIEN: All right, thanks. Appreciate it.

SERWER: You're welcome.

HEMMER: I'm older than you are.

O'BRIEN: Oh.

SERWER: Oh, you're still harping on that.

O'BRIEN: OK.

HEMMER: No, no.

(CROSSTALK)

HEMMER: Not for a second.

O'BRIEN: OK.

HEMMER: I didn't think for a second you thought that...

O'BRIEN: No, you know, I honestly wasn't thinking about you at that moment.

HEMMER: In a moment here -- thanks, Andy. In a moment, we'll get to the top stories including the opening of Bill Clinton's library today. How does he view the Lewinsky scandal inside that building? Live to Little Rock in a moment, top of the hour here on this AMERICAN MORNING.

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Aired November 18, 2004 - 07:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody. It's just about half past the hour on this AMERICAN MORNING.
The big question today: Is the U.S. military being pushed to its limits in Iraq? Top commanders have been weighing in on that critical question. We'll get the answer from Barbara Starr in just a moment.

BILL HEMMER, CNN ANCHOR: Also, some airlines are in deep financial trouble. We know that already. But more problems potentially now if flight attendants go on strike. Their union is talking about it. They're threatening. We'll look at the possible impact on holiday travel this year. And also there's a question here of whether or not it's even legal for them to do this. So it could have a significant impact. Andy was talking about this yesterday. So we'll get to that in a moment here.

O'BRIEN: Before any of that, though, let's check on the stories "Now in the News." Carol Costello is with us.

Hello. Making the move up from Atlanta. Nice to have you in the flesh.

CAROL COSTELLO, CNN ANCHOR: I know. I just jogged down six blocks from the Time Warner Building. So if I'm a little out of breath...

O'BRIEN: Carol, you've got to get a cab.

COSTELLO: I'll learn to do that, I'm sure.

"Now in the News." Good morning everyone.

Israeli forces are apologizing for the killing of three Egyptian policemen. The Israeli army says the men were mistaken for a terrorist cell operating near the border with Egypt. Israeli Prime Minister Ariel Sharon has apparently called Egyptian President Hosni Mubarak expressing his deepest apologies for the incident.

French President Jacques Chirac is in London this morning for two days of talks with British Prime Minister Tony Blair. After their meeting at 10 Downing Street, the leaders will hold a joint news conference in the next hour. Chirac will also attend a banquet at Windsor Castle hosted by Britain's Queen Elizabeth.

Here in the United States, Scott Peterson's defense is asking for another change of venue and a new jury for his penalty phase. No reasons have been given for why attorney Mark Geragos filed these motions. The judge will make a decision on Monday. That's when arguments in the penalty phase are set to begin. Peterson could be sentenced to death or life in prison.

And some Democratic Party leaders are asking why Senator John Kerry reportedly has millions left over from his campaign war chest, money they say could have been used to help other Democratic candidates. Reports say Kerry ended his White House bid with more than $15 million, but the money is apparently from his privately- funded campaign. A spokeswoman for Kerry says once all of the bills are paid, whatever is left over will be used for the Democratic Party.

Back to you.

HEMMER: In an election that close, don't leave it on the table, huh? That's what the Democrats are saying down in D.C. We're going to talk about it in our next hour in our "Political Jab" segment. So we'll get to it then.

And welcome to New York. You have a huge new life. You got married. You moved to the city.

O'BRIEN: Yes, a busy couple of months.

HEMMER: Man, you thought you were busy!

O'BRIEN: No, no. She's busier.

COSTELLO: No, I think Soledad's life is much more stressful.

O'BRIEN: We can sit down and have coffee later and talk about who has got the worst life.

COLLINS: We'll bump it a little stronger.

O'BRIEN: OK, I'm in. Thanks, Carol.

HEMMER: We'll have something stronger.

Well, the Pentagon is currently spending billions of dollars a month to fight the war in Iraq, but some military officials say that is not enough to properly equip the current troops or to recruit new ones as well.

To the Pentagon and Barbara Starr watching this story this morning.

And good morning there -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Bill.

Well, the war in Iraq now costing more than $5 billion a month. And the Joint Chiefs of Staff were on Capitol Hill yesterday offering some of the incredible statistics that demonstrate the strain on the force and the equipment. First of all, the Army, 110,000 soldiers serving in Iraq. Look at this statistic alone. The Army has manufactured 400,000 sets of body armor, those vests, helmets and pads. They are still making 25,000 a month, but they need 370,000 more sets of body armor.

In the last 15 months alone, the fleet of 250 armored Humvees has grown to 5,000. But they need 3,00 more.

And the Marines, which are certainly doing the heavy fighting in Falluja, the commandant of the Marine Corps talked about how his force is being stretched.

(BEGIN VIDEO CLIP)

GEN. MICHAEL W. HAGEE, COMMANDANT, U.S. MARINE CORPS: Currently, 30 percent of the Marine Corps ground equipment and 25 percent of our aviation equipment is deployed in theater and experiencing significant use in one of the harshest climates on the planet. The additional cost to support our combat operations, intermediate and depo (ph) level repairs, combat losses and sustainment is approximately $8 billion to $10 billion.

(END VIDEO CLIP)

STARR: Now, General Hagee offering one very interesting statistic. One Marine unit in Iraq in one year used its equipment so heavily it was actually the equivalent of 13 years of equipment use all compressed into one year.

And, of course, there is a human cost to all of this as well. The commandant of the Marine Corps reminded everyone that before Falluja, 23 Marines and sailors treated on average at Bethesda Navy Hospital as inpatients. Right now, the naval hospital has 100 patients, and more than 800 Army soldiers have lost their lives in this war in Iraq -- Bill.

HEMMER: Barbara, thanks. Barbara Starr at the Pentagon.

To that same hearing, the subject of journalists embedded with the troops in Iraq came up. We've talked a lot about this issue, especially yesterday. Well over 1,000 e-mails to our program here regarding that Marine shooting of an unarmed Iraqi inside of a mosque.

One U.S. Marine general was asked about what he thought about the embed program using reporters. Here's how it went down.

(BEGIN VIDEO CLIP)

REP. SILVESTRE REYES (D), TEXAS: I don't think it's a god idea to have embedded reporters in combat to the extent that we have them.

HAGEE: I understand the concern about embedded reporters. Obviously, I know the incident you're talking about. But, sir, in my personal opinion, embedded reporters have actually worked very well. They inform the American public about what these great young Americans are doing over there. And the large, large majority are doing, as you have -- as the members here have already articulated, are doing a tremendous job. And the American press is an important part of getting that information out.

(END VIDEO CLIP)

HEMMER: That from Congress yesterday.

The Marine involved in the shooting has been withdrawn from the battlefield until an investigation there in Iraq is completed on that case -- Soledad.

O'BRIEN: Well, Jane Arraf is embedded with the Army's 1st I.D., and she is reporting from Falluja today. U.S. forces in Falluja may, in fact, have come across significant information about insurgents loyal to both al Qaeda and also wanted-terrorist Abu al-Zarqawi.

Let's go right to Jane Arraf from Camp Falluja this morning.

Jane -- good morning.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Good morning, Soledad.

Well, officials tell us this likely won't point them to where Zarqawi might be, if he is anywhere, or inform them of his future operations. But what it does tell them is that he was a significant presence in Falluja.

And this is a house that we were taken to this morning. It has had bombs dropped on and near it, 500-pound bombs. There are bodies lying around.

But inside, they have retrieved documents, including, they tell us, a letter from Zarqawi to two of his lieutenants, believed to be leaders of the Zarqawi network in that neighborhood. There is also a letter -- two letters written to Zarqawi himself from these men asking for money and asking for other help.

On the wall as we walked in there was a symbol of al Qaeda drawn on a very bare wall. And everywhere evidence that whatever happened to these men had happened very quickly. There was food scattered on the floor, documents, a computer. The hard drive had been taken out of the computer, but there were CDs and other disks there as well.

And in the industrial section of Falluja, Soledad, more discoveries, including a suspected car bomb-making factory inside this ordinary looking building. We saw an American SUV-style vehicle with a brand new sticker Texas registration on it, license plates, a variety of license plates nearby, and bags and bags of chemicals that the military believes would have been used to stuff into that car, which was in the process of being dismantled -- Soledad.

O'BRIEN: A shocking discovery. Jane Arraf for us this morning. Jane, thanks -- Bill.

HEMMER: On a much different matter back in this country, FCC Chairman Michael Powell weighing in on that brouhaha that followed "Monday Night Football," this incident on ABC.. In a pre-game skit, sexy Nicolette Sheridan playing her character from the ABC hit, "Desperate Housewives," seducing Philadelphia Eagles star Terrell Owens in the locker room before the game.

(BEGIN VIDEO CLIP)

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

(END VIDEO CLIP)

HEMMER: Again, Michael Powell on that topic. Both ABC and the NFL have apologized. I just wonder whether or not the skit was any more risque than many other primetime shows, the daytime soap operas. This story lives for another day, Soledad, does it not?

O'BRIEN: They're all worrying about the same, which is a whole lot of nothing. But the story continues, as Bill says.

(WEATHER REPORT)

HEMMER: Jack is on assignment today.

O'BRIEN: Do you know when it says "on assignment," you're not on assignment.

(CROSSTALK)

HEMMER: What do you think he's doing?

O'BRIEN: I have no idea. And you know what? He's probably just hanging out.

HEMMER: It says he's on assignment.

O'BRIEN: But he is so not.

HEMMER: And you...

O'BRIEN: Whenever they say they're on assignment, they're not on assignment. That's what...

O'BRIEN: She's going to have a very tough day tomorrow.

TOURE, CNN POP CULTURE CORRESPONDENT: Whew! I'm glad I'm not going to be here.

O'BRIEN: Bring it on! Bring it on!

HEMMER: Twice in 42 minutes. What's happening, Toure? Good morning and welcome back. TOURE: Hey, I want to go and get drinks with you guys when you're hanging out and (UNINTELLIGIBLE) and all of that.

O'BRIEN: On who is busier?

TOURE: Yes, I want to be...

O'BRIEN: That will be fun conversation.

TOURE: I want to be down with that.

O'BRIEN: Sure, you're in, yes.

TOURE: So, I was at "TIME" magazine's brunch for the person of the year earlier this week. It was really cool. And it featured a debate over who should be the person of the year, the newsmaker who had the greatest influence on the events of the past annum.

Now, in my mind, there is no way they could pick anyone but Karl Rove. He read the country perfectly, was the architect of the election, which was the biggest news story of the year.

Some at the brunch argued that the president should win, but a more interesting suggestion was perhaps God, considering the way that the president, the pivotal evangelicals and the terrorists all employ God toward their own ends.

O'BRIEN: Interesting.

TOURE: Al Sharpton was there, and he said he'd love to see God win, because he'd love to see the picture. So...

O'BRIEN: So he could complain about it.

TOURE: Right. Someone else suggested a split cover with Michael Moore and Mel Gibson, the filmmakers of the year. And somehow Janet Jackson was left out of the discussion completely.

"TIME" will announce its choice on December 19th with a 30-minute special here on CNN. But why not short-circuit the process and tell us who's going to win...

HEMMER: Sure.

TOURE: ... or who should win "TIME's" person of the year.

Our "Question of the Day": Who should be "TIME" magazine's person of the year? E-mail us now at AM@CNN.com. You've got my vote, Bill Hemmer.

HEMMER: What's your vote?

O'BRIEN: He said, Karl Rove.

TOURE: Karl Rove.

HEMMER: Oh.

TOURE: It's got to be Karl Rove.

HEMMER: Others have said that. Al Sharpton said that the other day, too, apparently at this thing.

TOURE: Yes.

HEMMER: And Brian Williams came back and said something like, well, why don't you name Harry Hopkins man of the year?

TOURE: Well, even Harry Hopkins... HEMMER: And everyone said, "Who is Harry Hopkins?" Harry Hopkins was, like, FDR's right-hand man for 12 or 14 years.

TOURE: Right.

O'BRIEN: (UNINTELLIGIBLE) on that? Not quite.

HEMMER: No successful politician is ever good without a great operative behind him or her.

TOURE: Especially now in the media era.

HEMMER: I would probably go with George Bush.

TOURE: Why?

HEMMER: I think he has had more influence...

O'BRIEN: (UNINTELLIGIBLE) in Iraq.

HEMMER: Yes, we are. I think he's had more influence, not just in this country, but the events of the world more so than anyone else in the past 12 months.

TOURE: Why Bush over Rove?

O'BRIEN: Hello. We're getting a rap.

TOURE: I'm out of here.

O'BRIEN: We're going to have to hold that off until the next segment.

HEMMER: We will...

O'BRIEN: You guys can chat later.

TOURE: We'll talk later.

O'BRIEN: Our producer is yelling.

HEMMER: But I thought -- OK. Thanks, Toure.

O'BRIEN: More to talk about, obvious. Thank you, Toure. HEMMER: In a moment here, it looks like one of TiVo's most popular features is going to be a thing of the past. Andy talks about that.

O'BRIEN: Also ahead this morning, could your holiday travel plans be affected by a flight attendants' strike? We're to check in with an editor from "Travel & Leisure" magazine. Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: There is this strike by airline flight attendants that could wreak havoc on the holiday travel season; 46,000 member union claims that airlines are using the bankruptcy process to nullify the labor contracts. Flight attendants are now deciding whether or not to strike at United, US Airways, ATA and Hawaiian Airlines.

Nathan Lump is with "Travel & Leisure" magazine. He's here to talk about the potential impact of this.

Nice to see you, Nathan. Good morning to you.

NATHAN LUMP, "TRAVEL & LEISURE": Thanks, Bill.

HEMMER: Yesterday at this time Andy Serwer came in and said this could be a significant business and travel story. How significant in your estimation?

LUMP: It's a big story, if it happens. Certainly the airlines, as we all know, are in trouble. You know, could they sustain a strike? Probably not.

Now, the good news is that a strike is probably unlikely. But it's a major story in terms of what it says about where the airlines are going. Ultimately, we're looking at kind of last-ditch efforts on both sides. The flight attendants know they don't -- it's not a good thing for them to strike. The airlines know that they can't sustain a strike. But both sides are not willing to back down, because they're both in trouble.

HEMMER: Now, you put two qualifiers in that answer. You said if and it probably will not happen anyway. You don't believe this will take place? Is it then just a threat?

LUMP: I think it's a serious threat, but I think it's unlikely to happen. There are a number of things that have got to happen in order for a strike to go forward.

HEMMER: Such as?

LUMP: First of all, we're looking at what happens in the US Airways bankruptcy proceedings. December 2nd, the judge is going to hear the case about whether US Airways can nullify its contract with the labor union. If the judge says that that can't happen, then that defuses this whole issue. Now, if the judge says it does, then there's the question of whether the 1926 Railroad Labor Act applies in this case. Legal experts are divided. There is no exact precedent for this, because the laws have changed since the last time this happened in 1983.

So, what we're looking at is most experts, though, do say that the Railroad Labor Act probably will apply. If it does, then we're looking at national mediation board. We're looking at 30-day cooling- off period. And the president can still get involved even if the flight attendants vote to go forward after this whole process.

HEMMER: I don't want to get too ahead of the story here, but what would happen to some of these airlines, like United, like US Air, if they were to face a significant labor disruption?

LUMP: If a strike goes on for any length of time, obviously the airlines face serious cash flow problems. So, they probably can't sustain strikes for any length of time.

HEMMER: The president of the union had this to say. Listen to this real quick, and then I want to ask you about it.

(BEGIN VIDEO CLIP)

PATRICIA FRIEND, PRES., ASSN. OF FLIGHT ATTENDANTS: On the day that the first flight attendant contract is thrown out by a bankruptcy judge in this country, we will call on every AFA member, every flight attendant in this country represented by AFA or another union, and on every flight attendant around the world to go on strike.

(END VIDEO CLIP)

HEMMER: Pretty tough words. It's probably her job, though, as head of the union to give tough words at a time like this...

LUMP: Of course.

HEMMER: ... when you're trying to negotiate sometimes in public.

LUMP: Yes.

HEMMER: For a consumer who's making plans over the holiday season, maybe Christmas or New Year's, should they be concerned about this story today?

LUMP: I say don't panic. We're looking at basically this is something that's going to be played out in 2005. So, I think don't alter your holiday travel plans at this point. Watch the issue, see how it unfolds. But basically, in the short term we're not looking at action here.

HEMMER: Thanks, Nathan. Good to see you.

LUMP: Thank you.

HEMMER: Nathan Lump with "Travel & Leisure" magazine here in New York.

Back to Soledad now.

O'BRIEN: Tourists and commuters were stranded yesterday in the nation's capital by a surprise taxicab strike. Many drivers refused to pick up passengers for 12 hours. The cabbies are protesting Mayor Tony Williams' plan to abolish the city's Taxicab Commission and shift authority to the D.C. Department of Transportation. The cabbies are threatening more strikes.

Still to come this morning, TiVo says it's a TV lover's dream, but it may soon be a dream for advertisers, too. Andy is going to explain. He's "Minding Your Business" just ahead as we continue right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Business news now, a little preview of the action on Wall Street, and if you like to TiVo through those commercials, listen up. It's going to end. It's a case of couch commerce. Andy Serwer explains.

Hello.

ANDY SERWER, "FORTUNE" MAGAZINE: Hello. Ouch commerce maybe.

O'BRIEN: Ouch and couch.

SERWER: Yes, exactly. Let's talk about the markets a little bit. Yesterday getting a big boost from that Kmart-Sears deal. Dow was up 62 points. Nasdaq up as well, you can see here. So was the S&P 500. A lot of stocks -- Sears, Kmart, Whirlpool, Martha Stewart all up on the news.

One stock we'll be looking at this morning, though, Soledad, is Google. It is now at $172. The company this morning warning that its growth will be slowing down, putting downward pressure on its profit margins. Some would say this is an interesting time to be announcing that, because they've just had an expiration of a lockup period, meaning insiders could sell their shares. That was a couple days ago. And now they're suggesting perhaps growth is slowing. So we'll be paying attention to that stock this morning.

O'BRIEN: What about this TiVo story?

SERWER: Yes. This is interesting. You know, for years TiVo has been the enemy of Madison Avenue, because people would...

O'BRIEN: Click through commercials.

SERWER: ... TiVo and they would zap right through the commercials. Well, starting next March, TiVo is going to be rolling out a system, where they're going to be billboards or small logos, so on those commercials, even if you zap through them, so you're zapping through something. And it will still say, you know, Crest toothpaste potentially, so you'll still see that logo. And then ultimately, you'll be able to sort of click on that logo and engage in commerce.

So, TiVo used to be the enemy of advertisers, and now it looks like they're kind of coming together. Also going to be providing surveying information to advertisers.

O'BRIEN: So they figured out a way to do a deal with the advertisers...

SERWER: Yes, indeed.

O'BRIEN: ... to make a little -- I'm getting cynical in my old age, Andy.

SERWER: Yes, you and me both.

O'BRIEN: All right, thanks. Appreciate it.

SERWER: You're welcome.

HEMMER: I'm older than you are.

O'BRIEN: Oh.

SERWER: Oh, you're still harping on that.

O'BRIEN: OK.

HEMMER: No, no.

(CROSSTALK)

HEMMER: Not for a second.

O'BRIEN: OK.

HEMMER: I didn't think for a second you thought that...

O'BRIEN: No, you know, I honestly wasn't thinking about you at that moment.

HEMMER: In a moment here -- thanks, Andy. In a moment, we'll get to the top stories including the opening of Bill Clinton's library today. How does he view the Lewinsky scandal inside that building? Live to Little Rock in a moment, top of the hour here on this AMERICAN MORNING.

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