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American Morning

After Bernard Kerik, White House Looking for Another Name; Another Deadly Day for Iraqis and Americans

Aired December 13, 2004 - 08:00   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.


BILL HEMMER, CNN ANCHOR: A year ago, Saddam Hussein was plucked from a spider hole. Today, the country still in a cavern of violence after another deadly day for Iraqis and Americans.
After Bernard Kerik, the White House looking for another name and the end of an embarrassing situation.

And Japan naming a new threat to its national security and unveiling a military plan in the Pacific.

And we are here to see it on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Soledad O'Brien in New York and from Tokyo, Japan, Bill Hemmer.

HEMMER: Hello and good morning from Tokyo, Japan.

And we should say good evening, where it's 10:00 local time here in Japan. We are live here for an intercontinental version of AMERICAN MORNING in the area known as Roppongi Hills. And we've drawn a crowd. More than a thousand people coming out to see our show tonight. And it's great to see so many people and fans of not only our program, but also our network, CNN.

Fourteen hours ahead of New York City right now. As I mentioned, 10:00 at night.

AMERICAN MORNING is CNN's prime time news here and we're delighted to do the show here in person starting today and going for the next several days throughout the week here.

This hour, we'll spend some time looking at tradition in this great country and what tradition they have, too. The imperial family also a controversial topic at this point, with an historic change perhaps coming in the next generation.

Also, a look at sword fighting. You've seen the movies and you've seen the samurai movies, too. Well, I got a lesson. And, of course, we brought the camera. So I tell you, stay tuned. We had an awful lot of fun and a lot of enjoyment looking at this great Japanese art work.

Also Soledad is back in New York with Jack there -- good morning to you.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning to you, Bill.

HEMMER: We should say Ohio every hour.

O'BRIEN: Ohio guzamos (ph) to you, the only word I know. That's looks pretty cool. I'm looking forward to seeing that sword fighting.

HEMMER: Yes.

O'BRIEN: Some of the news that's making headlines here this morning, a huge day for Hollywood, of course. It is the morning for the Golden Globe nominations, often seen as foreshadowing the Academy Awards. Lots of great films getting lots of great buzz. We're going to bring you the nominations live. That comes to you in about 35 minutes.

And Mr. Cafferty, The Question of the Day involving National Guard troops.

JACK CAFFERTY, CNN CORRESPONDENT: Indeed, it does. We're going 6o talk a little about the "Cafferty File," which comes up here in a little less than an hour. We will have an update on Pale Male and Lola, the famous red-tailed hawks who were evicted from their New York nest last week.

We talked...

O'BRIEN: You like this story a lot.

CAFFERTY: I love this story. We talked about it at great length on Friday. You weren't here for that. A high level meeting on their future is set for today.

And a Hollywood celebrity reneges on a promise to pay a reward for her lost dog. Not only that, but the people that tried to return the dog to this woman were arrested.

O'BRIEN: Really?

CAFFERTY: So it's a rather tawdry Hollywood story.

O'BRIEN: For dog nabbing, don't you think?

CAFFERTY: Hmm?

O'BRIEN: Maybe dog napping?

CAFFERTY: No.

O'BRIEN: Oh.

CAFFERTY: No. Just idiot celebrity.

O'BRIEN: Even more interesting than dog nabbing.

All right, Jack.

CAFFERTY: But we'll do the Question of the Day later.

O'BRIEN: OK.

CAFFERTY: OK? Cool.

O'BRIEN: Sorry for that, you know?

CAFFERTY: It's not my birthday either today.

O'BRIEN: You know what? That is cruel and unnecessary and I want back all those cookies I baked by hand for you.

CAFFERTY: It's too late. I ate those cookies. They were very good, too.

O'BRIEN: But thanks for bringing it up, Jack. It's our tradition in our family to celebrate early.

CAFFERTY: Yes.

KELLY WALLACE, CNN CORRESPONDENT: So he's expecting another batch for his...

(CROSSTALK)

CAFFERTY: What's the deal? As long as you get it in the right month, is that...

O'BRIEN: Yes. Sometimes not even then.

WALLACE: It's a window.

O'BRIEN: But I try hard.

Kelly, help me.

KELLY WALLACE, CNN CORRESPONDENT: All right.

O'BRIEN: Let's go right to the headlines.

WALLACE: Let's move forward.

O'BRIEN: Please? Can we?

WALLACE: Yes.

Thanks.

Good morning again, everybody.

Now in the news, in just about three hours, jurors in Redwood City, California get back to work deciding whether Scott Peterson should get the death penalty or life behind bars. The jury took a weekend break after deliberating for about nine hours over two days. Some legal analysts say the fact jurors haven't come to a speedy decision may indicate they're leaning more toward sparing Peterson the death penalty. We'll have more legal analysis in our next hour.

Despite the shortage of flu vaccine that you've probably heard about, some states are easing restrictions on who can get the shots. The Centers for Disease Control acknowledging supply actually exceeds demand in some areas. Among the states now allowing more people not at high risk to get flu shots -- Michigan, Utah, Minnesota and Massachusetts.

And a big cleanup today in Minnesota pummeled by high winds over the weekend. Cables holding up the Christmas tree in front of the governor's mansion were yanked out in the heavy gusts. Winds of up to 60 miles per hour also took down some utility lines, knocking out power to thousands of people. Wow, Mother Nature showing the power. They're putting that Christmas tree back up today.

O'BRIEN: I was going to say, you know, that's what they're doing this morning, trying to put that up.

WALLACE: Yes. Extra strength cable lines today.

O'BRIEN: All right, Kelly, thanks.

WALLACE: Sure.

O'BRIEN: It was one year ago today that U.S. forces captured former Iraqi dictator Saddam Hussein. But even with him in custody, insurgency sparked violence in Iraq is still widespread across that country.

CNN's Chris Lawrence is in Baghdad for us this morning with much more -- Chris, good morning.

CHRIS LAWRENCE, CNN CORRESPONDENT: Yes, Soledad, it has been one year since Saddam's capture, but this is not the way American troops or their families back home would have wanted to mark this day. On Sunday, seven United States Marines were killed in action just west of Baghdad. We know these Marines were killed in two separate incidents and that it happened while they were trying to secure the area.

Military officials don't like to talk about the specifics of these attacks because they don't want to let the insurgents know which tactics worked better than others.

Now, right here in Baghdad earlier this morning a suicide bomber attacked a checkpoint near Baghdad's green zone, detonating a car bomb just as people were getting ready to go to work. We know that the green zone is a protected area that houses both the Iraqi interim government and the U.S. Embassy. But it's the Iraqi National Guard troops who actually man those checkpoints.

We have now learned that eight Iraqis have been killed in that explosion and many more of them have been wounded -- Soledad.

O'BRIEN: Chris, a quick question for you about Saddam Hussein on this anniversary of sorts. It appears, of course, he's not going to trial any time soon. Has he had a chance to meet with the lawyers who say they represent him?

LAWRENCE: We can't confirm if he's actually been meeting with his lawyers, although we don't believe he has done so. And honestly, it might not matter in the short run because nothing is going to happen to his trial while this election is still up front. Nothing will happen until an elected government gets in place. And even then, some of the officials are just now starting to look through the testimony. And with the security situation the way it is, we're hearing that it could be this time next year before this case even comes to trial.

O'BRIEN: One has to imagine maybe even longer than that.

Chris Lawrence is in Baghdad for us this morning.

Chris, thanks.

This morning both Democrats and Republicans are questioning the vetting process at the White House over the choice of Bernard Kerik for secretary of Homeland Security. Kerik withdrew his name late Friday over concerns about a family nanny with questionable immigration status.

White House correspondent Suzanne Malveaux joins us this morning from the White House with more -- hey, Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.

Really, the blame game in Washington, of course, is in full force. The questions, the debate continues over how was this critical information about Kerik's record, his employment of a nanny who likes it was -- had illegal immigration status -- did not actually clear through the White House vetting process. White House officials this weekend saying that they went through all the proper procedures and, of course, this comes at the same time as new questions emerge in a "New York Times" story about Kerik's alleged relationship with a New Jersey construction company that has long been suspected by New York authorities as having ties with organized crime.

Now, White House officials say that Kerik did not give the necessary information to them early on in the process and this afternoon Kerik came forward to clear the White House's name.

(BEGIN VIDEO CLIP) BERNARD KERIK, FORMER NEW YORK CITY POLICE COMMISSIONER: This is my responsibility. It was my mistake. It wasn't a mistake made by the White House. I think during their vetting process, this was something that they had looked at, but in a deep, closer look by me, it was something that I felt was just something I couldn't move forward on.

(END VIDEO CLIP)

MALVEAUX: And very clearly President Bush, as well as the White House, clearly wants to put this behind them and move forward. Some of the nominations, the potential nominees that he is looking at and he would like to nominate before Christmas is, one of them would be Asa Hutchinson. He is the Undersecretary for Border and Transportation Security; Mike Leavitt, the commissioner of the EPA; Fran Townsend, homeland security adviser to the president. And one particular nominee that is gaining attention, that is the Democratic senator, Joe Lieberman, who was one of the coauthors of the homeland security legislation -- Soledad.

O'BRIEN: Let's talk about Health and Human Services secretary now, Suzanne.

We've heard that they're going to make the announcement about the president's choice for that. It used to be Tommy Thompson, obviously, who announced his resignation.

Any idea of who it's going to be?

MALVEAUX: We have some ideas. The top of the list, and it may come as early as today, that announcement, is Mark McClellan. He is the Medicare chief. He's also the former commissioner of the FDA. And, coincidentally, the president -- Scott McClellan, who is the White House press secretary. So we're going to try to squeeze that out of him if we can.

O'BRIEN: Be gentle, Suzanne.

Always be gentle.

Our Suzanne Malveaux at the White House for us this morning.

Thanks.

And let's send it back to Tokyo and Bill Hemmer -- Bill.

HEMMER: All right, Soledad, thank you.

One of the headlines from over the weekend and something we continue to look at here in Japan, since the defeat after the Second World War, this country primarily maintaining a defensive military strategy. Now there are signs that may soon change.

Japan unveiled new defense guidelines on Friday which suggest the country will take a more active role in global security cooperation. The policy singles out North Korea's ballistic missiles and China's expanding military as potential regional threats.

Beijing, then, in response, expressed "strong dissatisfaction" with the classification, calling the statement "groundless" and also "irresponsible."

Another major shift in Japan's defense policy would be the easing of a decades long ban on weapons exports, allowing the country essentially to pursue a missile security program in conjunction with the United States. Japan would need to export arms components to the U.S. in order to develop such a system. Also, while we're talking about the military here, we should point out again, as we mentioned last hour here in talking with the head of U.S. forces here, not dismissing the possibility that U.S. forces at some time could be drawn down. About 58,000 strong at this point. But that strategy, we're told, is always looked at, especially in today's day, as to whether or not 58,000 is the number that it should be or whether or not the bases set up in Japan are serving the U.S. and Japanese interests to the fullest extent.

We will continue to examine that as we go throughout the week here in Tokyo. But the headlines quite significant, Soledad, and we can see them in the newspapers every day here in Japan -- back to you now in New York.

O'BRIEN: Thanks, Bill.

Can I ask you a quick question?

HEMMER: Sure.

O'BRIEN: You left right before the show ended on Thursday, right? You had your 14 hour flight. Tell me about when -- since you've landed.

Have you been just running like crazy or what's it like? And what's your body clock like? Are you wiped out?

HEMMER: All great questions, and I will tell you, you know, you saw "Lost In Translation," you saw Bill Murray, right? And this guy was just on the floor jet lagged. You really feel that way for the first day and a half. A lot of people who have come here will tell you that 14 hours on a plane can be pretty tough on the body. But it's a lot easier going back home, back to the U.S., because they say, A, it's only 12 hours. And for some reason the body clock has a much easier way of adapting when you go back home, which I guess it would be back east, essentially, because you essentially fly up over the Arctic Circle and around and yes, it can wipe you out pretty good.

We arrived on Friday evening. I think I started feeling a bit normal about Sunday afternoon -- Soledad.

O'BRIEN: All right, Bill.

Of course we're going to continue to check in with you throughout the morning.

Thanks.

But first let's head it over to the weather and Rob Marciano at the CNN Center with the latest forecast for us.

Hey -- Rob, good morning again.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Soledad.

(WEATHER REPORT) O'BRIEN: Structure, expect the unexpected. We're only a few minutes away from the Golden Globe nominations, the chance for small movies to shine and some big ones to pick up some Oscar momentum.

Also, who's in charge? Some ideas on which direction the Democratic Party should take. Are Howard Dean's supporters just screaming the loudest?

And we're going to check in with Bill again in Japan. I just a moment, the chrysanthemum throne has passed from father to son for generations. But all of that could change with what's going on inside and outside the palace. We'll explain ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back to Tokyo.

And Japanese culture very high in technology. But when it comes to the imperial family, it's very traditional.

CNN's Atika Shubert has a big job here in Tokyo.

She covers Japan for us here at CNN and she's with me now this evening here -- good evening to you.

ATIKA SHUBERT, CNN CORRESPONDENT: Good evening, Bill.

HEMMER: Thanks for being such a great hostess for us.

SHUBERT: Thank you.

Thank you for coming.

Well, as you said, the imperial family is a big tradition here. And what we see is that tradition is very important to the Japanese. And the imperial family here is actually very reserved, unlike the royal family in other parts of Europe.

And what that's done recently is that even though normally the private problems of the imperial family are kept behind the walls of the imperial palace, some of their personal problems have been spilling out into the public by members of the imperial family themselves, are bringing those problems out. And that's causing members of the public to wonder whether the imperial family is an outdated institution.

(BEGIN VIDEO TAPE)

SHUBERT (voice-over): Once upon a time in the world's oldest aristocracy, Japan's crown prince, Naruhito married Masako Owada, a rising star in Japan's foreign service who many hoped would breath new life into Japan's staunchly traditional imperial family.

Imperial tradition is changing, but not in the way many had hoped. Today, Masako is 41 years old and has all but disappeared from the public eye, suffering depression triggered, palace watchers say, by pressure to produce a male heir to the chrysanthemum throne.

(on camera): Behind me is the Imperial Palace, where the royal line has been passed down from father to son for generations unbroken. But it is the women inside the palace that, willingly or not, are changing the future of the imperial family.

(voice-over): Crown Princess Aiko is just three years old, the only child of Princess Masako and Crown Prince Naruhito. There is great debate swirling about her. Should she inherit the throne and defy hundreds of years of tradition?

The public seems to think so. On Aiko's birthday, adoring crowds gathered, including Harumi Kobayachi, a self-described housewife who has made a career out of following Princess Masako and baby Aiko, taking thousands of amateur photos. "I think Masako is a woman of dignity who had a great career. When she quit her job to marry, I knew it would be hard, but I hoped for the best," she told us. "After Princess Aiko was born, I think Masako's popularity has only grown."

Contrast Masako with her son-in-law, Saiko (ph), recently engaged. According to imperial custom, her marriage, to a commoner, will remove her from the royal family.

Both cases, sociologists say, reflect the dilemma of modern Japanese women. "Many Japanese women have these problems, highly educated with good jobs, but difficulty in marriage when they are forced to follow tradition," this psychiatrist told us. "The feeling among the new generation is that an imperial that deprives personal happiness should not exist."

That may be one reason allowing a woman to inherit the throne is so important. Tradition may have to bend if the imperial wants to live happily ever after.

(END VIDEO TAPE)

SHUBERT: Now, this isn't something that's going to be resolved overnight. But it has started a discussion about whether or not the constitution should be changed to finally allow a woman to ascend the throne of the imperial.

HEMMER: Very interesting how you point out, she has essentially been out of public view now for more than a year, right?

SHUBERT: That's right.

HEMMER: But the word is that perhaps she's suffering from a medical condition.

SHUBERT: That's right. Actually, it's just come out recently that there seems to have been some improvement in her condition and that she might make some more public appearances, particularly around the Japanese New Year. And that's a very encouraging sign for the Japanese people. As you know, she's very popular here. So they'll be very happy to see here again.

HEMMER: Great to see you.

SHUBERT: Good to see you, Bill.

HEMMER: Thanks, Atika.

See you again tomorrow.

I'm looking forward to another report from you here in Japan.

SHUBERT: OK.

HEMMER: Great.

Back to Soledad now in New York City -- Soledad.

O'BRIEN: Thanks, Bill.

Still to come this morning, a deadly car bombing outside Baghdad's green zone. An update on that.

Also, Andy Serwer tells us if Japan's economy has turned a corner and if that's for the better or for the worse.

Stay with us.

You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back, everybody.

CAFFERTY: Has Japan's economy really turned the corner?

Andy Serwer is back with us now, minding your business -- good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, Jack.

The Japanese economy, the second biggest in the world. We're going to be talking about it all week while Mr. Hemmer is out in Japan.

Closely linked to our economy. A lot of the names that you know, of course, Toyota, Sony and Cannon, household names in the United States. The Japanese economy basically was going gangbusters until 1990. A huge bubble, you may remember, back then. And then for the whole decade, the economy has been stagnant.

Over the past two years, since 2002, the economy seems to have recovered, but now there are questions about that recovery because of the dollar. Now, here is the Nikkei over the past two years. It's up about 26 percent. You can see it flattening out, which is about the same as the Dow.

By the way, it's -- the Nikkei is at about 10,700, which is close to the Dow, which is 10,500. CAFFERTY: But back when that bubble burst, it was something like 35,000, wasn't it?

SERWER: Forty thousand is where it topped out.

CAFFERTY: Forty thousand. Wow!

SERWER: An unbelievable decline over that decade.

There are questions now because the dollar has declined, that makes Japanese good expensive here, all those DVD players and cars. That's not good. Also, China seems to be running out of steam, as well.

So the economy there, there are real questions whether this recovery is going to continue. Of course, the nation of Japan still leads the world in terms of consumer electronics. And it continues to do so. Just the other night, a new PlayStation was rolled out, a new Sony PlayStation, a handheld device, to go up against the Nintendo player. And the lines were around the block. These were people lining up in freezing cold to get consumer electronics.

CAFFERTY: Wow!

SERWER: The Japanese think a little bit differently than we do. Although, on the other hand, people line up in the United States overnight to get...

O'BRIEN: For Krispy Kremes.

SERWER: Yes. For donuts.

CAFFERTY: Yes.

SERWER: So who's ahead here in this game?

CAFFERTY: There you go. See.

SERWER: But it's a very interesting economy. You know, it's a lot like ours, but it's also very different. Even though the economy was stagnant all those years, it's still a very, very wealthy country. It's not like there were lines in the street for food or jobs.

CAFFERTY: Oh, no.

SERWER: It's an interesting situation.

CAFFERTY: And lifelong employment, in many cases, with the companies that you work for.

SERWER: Right.

CAFFERTY: There's still that employer/employee loyalty that long ago disappeared here in the colonies.

SERWER: Yes. In the colonies. CAFFERTY: Thanks, Andy.

SERWER: You're welcome.

CAFFERTY: On to The Question of the Day.

Army National Guard members about 35 percent more likely to be killed in Iraq than full time active duty soldiers. This is according to a piece in "USA Today." Reports from the field suggest National Guardsmen often have worse equipment and training than the active duty troops. Yet some are being assigned to the most dangerous missions in Iraq. These are soldiers who generally drill just one weekend a month and spend two weeks training in the summertime when their nation is not at war.

The question is this, should part time soldiers be put on the front lines in Iraq?

David writes from Ames, Iowa, just north of Des Moines there: "As a former member of both the active duty military and the National Guard, I completely agree that in time of war, Guard and Reserve members should be required to serve on the front lines. The commander-in-chief has ordered the Reserve component to serve and serving means wherever the military needs them."

Charles in Marion, Ohio: "The National Guard is our front line soldiers here at home. The regular soldiers are the front line away from home. Bush ought to know this, since he joined the National Guard to keep from going to war in the late '60s, early '70s."

That's harsh.

Colleen in Virginia Beach, Virginia: "Come on, stop acting like active duty Army are disposable. They have families that have suffered for many more years waiting for loved ones to return from schools, temporary duty, hostile areas and field time. A National Guard is only giving up a small part of their time."

Eric in Sayre, Pennsylvania: "Why is anybody surprised the soldiers with the least amount of training are being given the most dangerous assignments? It's one of the sad facts of war that the people easiest to replace are the ones most likely to be placed in harm's way."

SERWER: Wow!

CAFFERTY: Yes, tough stuff.

O'BRIEN: Is there any indication that that's intentional, that they're being put in harm's way because they're National Guard troops -- I mean, which is sort of what your last writer is implying.

CAFFERTY: I have no idea.

O'BRIEN: OK.

SERWER: You would hope not.

CAFFERTY: Yes, one would hope not.

My hunch is that they're being assigned where they're needed.

O'BRIEN: Right.

CAFFERTY: When you're fighting a war, it's like, you know, you've got to have personnel to do all the jobs and they're getting plugged in where they need to be. But the statistics indicate that more of these Guardspeople are being killed over there and, you know, I'm not sure the reason why.

O'BRIEN: All right, Jack, thank you.

CAFFERTY: Sure.

O'BRIEN: Andy, as well.

Let's go back to Bill in Tokyo -- hello.

HEMMER: Hey, Soledad.

To understand this country, you have to understand the complex art of the samurai. And to understand the samurai, you have to learn how to sword fight. And we did. The kind of sword -- we'll show you in a moment here live in Tokyo on AMERICAN MORNING after this.

(COMMERCIAL BREAK)

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Aired December 13, 2004 - 08:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: A year ago, Saddam Hussein was plucked from a spider hole. Today, the country still in a cavern of violence after another deadly day for Iraqis and Americans.
After Bernard Kerik, the White House looking for another name and the end of an embarrassing situation.

And Japan naming a new threat to its national security and unveiling a military plan in the Pacific.

And we are here to see it on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Soledad O'Brien in New York and from Tokyo, Japan, Bill Hemmer.

HEMMER: Hello and good morning from Tokyo, Japan.

And we should say good evening, where it's 10:00 local time here in Japan. We are live here for an intercontinental version of AMERICAN MORNING in the area known as Roppongi Hills. And we've drawn a crowd. More than a thousand people coming out to see our show tonight. And it's great to see so many people and fans of not only our program, but also our network, CNN.

Fourteen hours ahead of New York City right now. As I mentioned, 10:00 at night.

AMERICAN MORNING is CNN's prime time news here and we're delighted to do the show here in person starting today and going for the next several days throughout the week here.

This hour, we'll spend some time looking at tradition in this great country and what tradition they have, too. The imperial family also a controversial topic at this point, with an historic change perhaps coming in the next generation.

Also, a look at sword fighting. You've seen the movies and you've seen the samurai movies, too. Well, I got a lesson. And, of course, we brought the camera. So I tell you, stay tuned. We had an awful lot of fun and a lot of enjoyment looking at this great Japanese art work.

Also Soledad is back in New York with Jack there -- good morning to you.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning to you, Bill.

HEMMER: We should say Ohio every hour.

O'BRIEN: Ohio guzamos (ph) to you, the only word I know. That's looks pretty cool. I'm looking forward to seeing that sword fighting.

HEMMER: Yes.

O'BRIEN: Some of the news that's making headlines here this morning, a huge day for Hollywood, of course. It is the morning for the Golden Globe nominations, often seen as foreshadowing the Academy Awards. Lots of great films getting lots of great buzz. We're going to bring you the nominations live. That comes to you in about 35 minutes.

And Mr. Cafferty, The Question of the Day involving National Guard troops.

JACK CAFFERTY, CNN CORRESPONDENT: Indeed, it does. We're going 6o talk a little about the "Cafferty File," which comes up here in a little less than an hour. We will have an update on Pale Male and Lola, the famous red-tailed hawks who were evicted from their New York nest last week.

We talked...

O'BRIEN: You like this story a lot.

CAFFERTY: I love this story. We talked about it at great length on Friday. You weren't here for that. A high level meeting on their future is set for today.

And a Hollywood celebrity reneges on a promise to pay a reward for her lost dog. Not only that, but the people that tried to return the dog to this woman were arrested.

O'BRIEN: Really?

CAFFERTY: So it's a rather tawdry Hollywood story.

O'BRIEN: For dog nabbing, don't you think?

CAFFERTY: Hmm?

O'BRIEN: Maybe dog napping?

CAFFERTY: No.

O'BRIEN: Oh.

CAFFERTY: No. Just idiot celebrity.

O'BRIEN: Even more interesting than dog nabbing.

All right, Jack.

CAFFERTY: But we'll do the Question of the Day later.

O'BRIEN: OK.

CAFFERTY: OK? Cool.

O'BRIEN: Sorry for that, you know?

CAFFERTY: It's not my birthday either today.

O'BRIEN: You know what? That is cruel and unnecessary and I want back all those cookies I baked by hand for you.

CAFFERTY: It's too late. I ate those cookies. They were very good, too.

O'BRIEN: But thanks for bringing it up, Jack. It's our tradition in our family to celebrate early.

CAFFERTY: Yes.

KELLY WALLACE, CNN CORRESPONDENT: So he's expecting another batch for his...

(CROSSTALK)

CAFFERTY: What's the deal? As long as you get it in the right month, is that...

O'BRIEN: Yes. Sometimes not even then.

WALLACE: It's a window.

O'BRIEN: But I try hard.

Kelly, help me.

KELLY WALLACE, CNN CORRESPONDENT: All right.

O'BRIEN: Let's go right to the headlines.

WALLACE: Let's move forward.

O'BRIEN: Please? Can we?

WALLACE: Yes.

Thanks.

Good morning again, everybody.

Now in the news, in just about three hours, jurors in Redwood City, California get back to work deciding whether Scott Peterson should get the death penalty or life behind bars. The jury took a weekend break after deliberating for about nine hours over two days. Some legal analysts say the fact jurors haven't come to a speedy decision may indicate they're leaning more toward sparing Peterson the death penalty. We'll have more legal analysis in our next hour.

Despite the shortage of flu vaccine that you've probably heard about, some states are easing restrictions on who can get the shots. The Centers for Disease Control acknowledging supply actually exceeds demand in some areas. Among the states now allowing more people not at high risk to get flu shots -- Michigan, Utah, Minnesota and Massachusetts.

And a big cleanup today in Minnesota pummeled by high winds over the weekend. Cables holding up the Christmas tree in front of the governor's mansion were yanked out in the heavy gusts. Winds of up to 60 miles per hour also took down some utility lines, knocking out power to thousands of people. Wow, Mother Nature showing the power. They're putting that Christmas tree back up today.

O'BRIEN: I was going to say, you know, that's what they're doing this morning, trying to put that up.

WALLACE: Yes. Extra strength cable lines today.

O'BRIEN: All right, Kelly, thanks.

WALLACE: Sure.

O'BRIEN: It was one year ago today that U.S. forces captured former Iraqi dictator Saddam Hussein. But even with him in custody, insurgency sparked violence in Iraq is still widespread across that country.

CNN's Chris Lawrence is in Baghdad for us this morning with much more -- Chris, good morning.

CHRIS LAWRENCE, CNN CORRESPONDENT: Yes, Soledad, it has been one year since Saddam's capture, but this is not the way American troops or their families back home would have wanted to mark this day. On Sunday, seven United States Marines were killed in action just west of Baghdad. We know these Marines were killed in two separate incidents and that it happened while they were trying to secure the area.

Military officials don't like to talk about the specifics of these attacks because they don't want to let the insurgents know which tactics worked better than others.

Now, right here in Baghdad earlier this morning a suicide bomber attacked a checkpoint near Baghdad's green zone, detonating a car bomb just as people were getting ready to go to work. We know that the green zone is a protected area that houses both the Iraqi interim government and the U.S. Embassy. But it's the Iraqi National Guard troops who actually man those checkpoints.

We have now learned that eight Iraqis have been killed in that explosion and many more of them have been wounded -- Soledad.

O'BRIEN: Chris, a quick question for you about Saddam Hussein on this anniversary of sorts. It appears, of course, he's not going to trial any time soon. Has he had a chance to meet with the lawyers who say they represent him?

LAWRENCE: We can't confirm if he's actually been meeting with his lawyers, although we don't believe he has done so. And honestly, it might not matter in the short run because nothing is going to happen to his trial while this election is still up front. Nothing will happen until an elected government gets in place. And even then, some of the officials are just now starting to look through the testimony. And with the security situation the way it is, we're hearing that it could be this time next year before this case even comes to trial.

O'BRIEN: One has to imagine maybe even longer than that.

Chris Lawrence is in Baghdad for us this morning.

Chris, thanks.

This morning both Democrats and Republicans are questioning the vetting process at the White House over the choice of Bernard Kerik for secretary of Homeland Security. Kerik withdrew his name late Friday over concerns about a family nanny with questionable immigration status.

White House correspondent Suzanne Malveaux joins us this morning from the White House with more -- hey, Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.

Really, the blame game in Washington, of course, is in full force. The questions, the debate continues over how was this critical information about Kerik's record, his employment of a nanny who likes it was -- had illegal immigration status -- did not actually clear through the White House vetting process. White House officials this weekend saying that they went through all the proper procedures and, of course, this comes at the same time as new questions emerge in a "New York Times" story about Kerik's alleged relationship with a New Jersey construction company that has long been suspected by New York authorities as having ties with organized crime.

Now, White House officials say that Kerik did not give the necessary information to them early on in the process and this afternoon Kerik came forward to clear the White House's name.

(BEGIN VIDEO CLIP) BERNARD KERIK, FORMER NEW YORK CITY POLICE COMMISSIONER: This is my responsibility. It was my mistake. It wasn't a mistake made by the White House. I think during their vetting process, this was something that they had looked at, but in a deep, closer look by me, it was something that I felt was just something I couldn't move forward on.

(END VIDEO CLIP)

MALVEAUX: And very clearly President Bush, as well as the White House, clearly wants to put this behind them and move forward. Some of the nominations, the potential nominees that he is looking at and he would like to nominate before Christmas is, one of them would be Asa Hutchinson. He is the Undersecretary for Border and Transportation Security; Mike Leavitt, the commissioner of the EPA; Fran Townsend, homeland security adviser to the president. And one particular nominee that is gaining attention, that is the Democratic senator, Joe Lieberman, who was one of the coauthors of the homeland security legislation -- Soledad.

O'BRIEN: Let's talk about Health and Human Services secretary now, Suzanne.

We've heard that they're going to make the announcement about the president's choice for that. It used to be Tommy Thompson, obviously, who announced his resignation.

Any idea of who it's going to be?

MALVEAUX: We have some ideas. The top of the list, and it may come as early as today, that announcement, is Mark McClellan. He is the Medicare chief. He's also the former commissioner of the FDA. And, coincidentally, the president -- Scott McClellan, who is the White House press secretary. So we're going to try to squeeze that out of him if we can.

O'BRIEN: Be gentle, Suzanne.

Always be gentle.

Our Suzanne Malveaux at the White House for us this morning.

Thanks.

And let's send it back to Tokyo and Bill Hemmer -- Bill.

HEMMER: All right, Soledad, thank you.

One of the headlines from over the weekend and something we continue to look at here in Japan, since the defeat after the Second World War, this country primarily maintaining a defensive military strategy. Now there are signs that may soon change.

Japan unveiled new defense guidelines on Friday which suggest the country will take a more active role in global security cooperation. The policy singles out North Korea's ballistic missiles and China's expanding military as potential regional threats.

Beijing, then, in response, expressed "strong dissatisfaction" with the classification, calling the statement "groundless" and also "irresponsible."

Another major shift in Japan's defense policy would be the easing of a decades long ban on weapons exports, allowing the country essentially to pursue a missile security program in conjunction with the United States. Japan would need to export arms components to the U.S. in order to develop such a system. Also, while we're talking about the military here, we should point out again, as we mentioned last hour here in talking with the head of U.S. forces here, not dismissing the possibility that U.S. forces at some time could be drawn down. About 58,000 strong at this point. But that strategy, we're told, is always looked at, especially in today's day, as to whether or not 58,000 is the number that it should be or whether or not the bases set up in Japan are serving the U.S. and Japanese interests to the fullest extent.

We will continue to examine that as we go throughout the week here in Tokyo. But the headlines quite significant, Soledad, and we can see them in the newspapers every day here in Japan -- back to you now in New York.

O'BRIEN: Thanks, Bill.

Can I ask you a quick question?

HEMMER: Sure.

O'BRIEN: You left right before the show ended on Thursday, right? You had your 14 hour flight. Tell me about when -- since you've landed.

Have you been just running like crazy or what's it like? And what's your body clock like? Are you wiped out?

HEMMER: All great questions, and I will tell you, you know, you saw "Lost In Translation," you saw Bill Murray, right? And this guy was just on the floor jet lagged. You really feel that way for the first day and a half. A lot of people who have come here will tell you that 14 hours on a plane can be pretty tough on the body. But it's a lot easier going back home, back to the U.S., because they say, A, it's only 12 hours. And for some reason the body clock has a much easier way of adapting when you go back home, which I guess it would be back east, essentially, because you essentially fly up over the Arctic Circle and around and yes, it can wipe you out pretty good.

We arrived on Friday evening. I think I started feeling a bit normal about Sunday afternoon -- Soledad.

O'BRIEN: All right, Bill.

Of course we're going to continue to check in with you throughout the morning.

Thanks.

But first let's head it over to the weather and Rob Marciano at the CNN Center with the latest forecast for us.

Hey -- Rob, good morning again.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Soledad.

(WEATHER REPORT) O'BRIEN: Structure, expect the unexpected. We're only a few minutes away from the Golden Globe nominations, the chance for small movies to shine and some big ones to pick up some Oscar momentum.

Also, who's in charge? Some ideas on which direction the Democratic Party should take. Are Howard Dean's supporters just screaming the loudest?

And we're going to check in with Bill again in Japan. I just a moment, the chrysanthemum throne has passed from father to son for generations. But all of that could change with what's going on inside and outside the palace. We'll explain ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back to Tokyo.

And Japanese culture very high in technology. But when it comes to the imperial family, it's very traditional.

CNN's Atika Shubert has a big job here in Tokyo.

She covers Japan for us here at CNN and she's with me now this evening here -- good evening to you.

ATIKA SHUBERT, CNN CORRESPONDENT: Good evening, Bill.

HEMMER: Thanks for being such a great hostess for us.

SHUBERT: Thank you.

Thank you for coming.

Well, as you said, the imperial family is a big tradition here. And what we see is that tradition is very important to the Japanese. And the imperial family here is actually very reserved, unlike the royal family in other parts of Europe.

And what that's done recently is that even though normally the private problems of the imperial family are kept behind the walls of the imperial palace, some of their personal problems have been spilling out into the public by members of the imperial family themselves, are bringing those problems out. And that's causing members of the public to wonder whether the imperial family is an outdated institution.

(BEGIN VIDEO TAPE)

SHUBERT (voice-over): Once upon a time in the world's oldest aristocracy, Japan's crown prince, Naruhito married Masako Owada, a rising star in Japan's foreign service who many hoped would breath new life into Japan's staunchly traditional imperial family.

Imperial tradition is changing, but not in the way many had hoped. Today, Masako is 41 years old and has all but disappeared from the public eye, suffering depression triggered, palace watchers say, by pressure to produce a male heir to the chrysanthemum throne.

(on camera): Behind me is the Imperial Palace, where the royal line has been passed down from father to son for generations unbroken. But it is the women inside the palace that, willingly or not, are changing the future of the imperial family.

(voice-over): Crown Princess Aiko is just three years old, the only child of Princess Masako and Crown Prince Naruhito. There is great debate swirling about her. Should she inherit the throne and defy hundreds of years of tradition?

The public seems to think so. On Aiko's birthday, adoring crowds gathered, including Harumi Kobayachi, a self-described housewife who has made a career out of following Princess Masako and baby Aiko, taking thousands of amateur photos. "I think Masako is a woman of dignity who had a great career. When she quit her job to marry, I knew it would be hard, but I hoped for the best," she told us. "After Princess Aiko was born, I think Masako's popularity has only grown."

Contrast Masako with her son-in-law, Saiko (ph), recently engaged. According to imperial custom, her marriage, to a commoner, will remove her from the royal family.

Both cases, sociologists say, reflect the dilemma of modern Japanese women. "Many Japanese women have these problems, highly educated with good jobs, but difficulty in marriage when they are forced to follow tradition," this psychiatrist told us. "The feeling among the new generation is that an imperial that deprives personal happiness should not exist."

That may be one reason allowing a woman to inherit the throne is so important. Tradition may have to bend if the imperial wants to live happily ever after.

(END VIDEO TAPE)

SHUBERT: Now, this isn't something that's going to be resolved overnight. But it has started a discussion about whether or not the constitution should be changed to finally allow a woman to ascend the throne of the imperial.

HEMMER: Very interesting how you point out, she has essentially been out of public view now for more than a year, right?

SHUBERT: That's right.

HEMMER: But the word is that perhaps she's suffering from a medical condition.

SHUBERT: That's right. Actually, it's just come out recently that there seems to have been some improvement in her condition and that she might make some more public appearances, particularly around the Japanese New Year. And that's a very encouraging sign for the Japanese people. As you know, she's very popular here. So they'll be very happy to see here again.

HEMMER: Great to see you.

SHUBERT: Good to see you, Bill.

HEMMER: Thanks, Atika.

See you again tomorrow.

I'm looking forward to another report from you here in Japan.

SHUBERT: OK.

HEMMER: Great.

Back to Soledad now in New York City -- Soledad.

O'BRIEN: Thanks, Bill.

Still to come this morning, a deadly car bombing outside Baghdad's green zone. An update on that.

Also, Andy Serwer tells us if Japan's economy has turned a corner and if that's for the better or for the worse.

Stay with us.

You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back, everybody.

CAFFERTY: Has Japan's economy really turned the corner?

Andy Serwer is back with us now, minding your business -- good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, Jack.

The Japanese economy, the second biggest in the world. We're going to be talking about it all week while Mr. Hemmer is out in Japan.

Closely linked to our economy. A lot of the names that you know, of course, Toyota, Sony and Cannon, household names in the United States. The Japanese economy basically was going gangbusters until 1990. A huge bubble, you may remember, back then. And then for the whole decade, the economy has been stagnant.

Over the past two years, since 2002, the economy seems to have recovered, but now there are questions about that recovery because of the dollar. Now, here is the Nikkei over the past two years. It's up about 26 percent. You can see it flattening out, which is about the same as the Dow.

By the way, it's -- the Nikkei is at about 10,700, which is close to the Dow, which is 10,500. CAFFERTY: But back when that bubble burst, it was something like 35,000, wasn't it?

SERWER: Forty thousand is where it topped out.

CAFFERTY: Forty thousand. Wow!

SERWER: An unbelievable decline over that decade.

There are questions now because the dollar has declined, that makes Japanese good expensive here, all those DVD players and cars. That's not good. Also, China seems to be running out of steam, as well.

So the economy there, there are real questions whether this recovery is going to continue. Of course, the nation of Japan still leads the world in terms of consumer electronics. And it continues to do so. Just the other night, a new PlayStation was rolled out, a new Sony PlayStation, a handheld device, to go up against the Nintendo player. And the lines were around the block. These were people lining up in freezing cold to get consumer electronics.

CAFFERTY: Wow!

SERWER: The Japanese think a little bit differently than we do. Although, on the other hand, people line up in the United States overnight to get...

O'BRIEN: For Krispy Kremes.

SERWER: Yes. For donuts.

CAFFERTY: Yes.

SERWER: So who's ahead here in this game?

CAFFERTY: There you go. See.

SERWER: But it's a very interesting economy. You know, it's a lot like ours, but it's also very different. Even though the economy was stagnant all those years, it's still a very, very wealthy country. It's not like there were lines in the street for food or jobs.

CAFFERTY: Oh, no.

SERWER: It's an interesting situation.

CAFFERTY: And lifelong employment, in many cases, with the companies that you work for.

SERWER: Right.

CAFFERTY: There's still that employer/employee loyalty that long ago disappeared here in the colonies.

SERWER: Yes. In the colonies. CAFFERTY: Thanks, Andy.

SERWER: You're welcome.

CAFFERTY: On to The Question of the Day.

Army National Guard members about 35 percent more likely to be killed in Iraq than full time active duty soldiers. This is according to a piece in "USA Today." Reports from the field suggest National Guardsmen often have worse equipment and training than the active duty troops. Yet some are being assigned to the most dangerous missions in Iraq. These are soldiers who generally drill just one weekend a month and spend two weeks training in the summertime when their nation is not at war.

The question is this, should part time soldiers be put on the front lines in Iraq?

David writes from Ames, Iowa, just north of Des Moines there: "As a former member of both the active duty military and the National Guard, I completely agree that in time of war, Guard and Reserve members should be required to serve on the front lines. The commander-in-chief has ordered the Reserve component to serve and serving means wherever the military needs them."

Charles in Marion, Ohio: "The National Guard is our front line soldiers here at home. The regular soldiers are the front line away from home. Bush ought to know this, since he joined the National Guard to keep from going to war in the late '60s, early '70s."

That's harsh.

Colleen in Virginia Beach, Virginia: "Come on, stop acting like active duty Army are disposable. They have families that have suffered for many more years waiting for loved ones to return from schools, temporary duty, hostile areas and field time. A National Guard is only giving up a small part of their time."

Eric in Sayre, Pennsylvania: "Why is anybody surprised the soldiers with the least amount of training are being given the most dangerous assignments? It's one of the sad facts of war that the people easiest to replace are the ones most likely to be placed in harm's way."

SERWER: Wow!

CAFFERTY: Yes, tough stuff.

O'BRIEN: Is there any indication that that's intentional, that they're being put in harm's way because they're National Guard troops -- I mean, which is sort of what your last writer is implying.

CAFFERTY: I have no idea.

O'BRIEN: OK.

SERWER: You would hope not.

CAFFERTY: Yes, one would hope not.

My hunch is that they're being assigned where they're needed.

O'BRIEN: Right.

CAFFERTY: When you're fighting a war, it's like, you know, you've got to have personnel to do all the jobs and they're getting plugged in where they need to be. But the statistics indicate that more of these Guardspeople are being killed over there and, you know, I'm not sure the reason why.

O'BRIEN: All right, Jack, thank you.

CAFFERTY: Sure.

O'BRIEN: Andy, as well.

Let's go back to Bill in Tokyo -- hello.

HEMMER: Hey, Soledad.

To understand this country, you have to understand the complex art of the samurai. And to understand the samurai, you have to learn how to sword fight. And we did. The kind of sword -- we'll show you in a moment here live in Tokyo on AMERICAN MORNING after this.

(COMMERCIAL BREAK)

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