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CNN Live At Daybreak

Homeland Security in Orlando; Hostage Situation in Athens, Greece

Aired December 15, 2004 - 05:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, in Greece, a routine morning commute becomes a national drama as passengers on board that bus you're looking at live are taken hostage. We take you live to Athens shortly.
Plus, the number one family tourist destination in the world -- the question this morning, is Homeland Security playing Mickey Mouse with Orlando?

And talk about your plus sizes, elephants on the fashion runway. Only Jeanne Moos can explain this one.

It is Wednesday, December 15.

This is DAYBREAK.

Good morning to you.

From the Time Warner Center in New York, I'm Carol Costello.

Thank you for joining us.

Now in the news, going on right now, a hostage situation in a suburb of Athens, Greece. It began six hours ago when gunmen seized a bus with more than two dozen passengers. They're demanding to be taken to the airport, but authorities are not budging. Within the last few minutes, though, a few hostages, at least five of them, have been released.

Outside government buildings in Kiev, Ukraine at this hour, supporters of the Orange Revolution hear from their leader, Viktor Yushchenko. A runoff in the highly suspect presidential elections is 11 days away now.

Preparing to face justice, this morning an announcement that one of Saddam Hussein's top associates, Ali Hassan al-Majid, better known as "Chemical Ali," will go on trial before the end of December. He'll be the first member of the former regime to stand trial.

And the U.S. Air Force is stepping up its cargo flights across Iraq. That means fewer supply convoys for U.S. troops and maybe, maybe fewer deadly insurgent attacks on those convoys.

To the forecast center in Atlanta.

And Chad is back -- good morning. CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

It is so nice to be back, because I actually got a...

COSTELLO: It's so nice to have you back.

MYERS: I got a great night's sleep last night for the first time in two weeks.

Good morning, everybody.

(WEATHER REPORT)

COSTELLO: We begin this hour with a CNN "Security Watch." Earlier this month, the Department of Homeland Security earmarked nearly a billion dollars for 50 at risk American cities. But now some serious questions are being raised about the process and about the cities being left off the list.

CNN homeland security correspondent Jeanne Meserve looks at one city's concerns.

(BEGIN VIDEO TAPE)

UNIDENTIFIED FEMALE: It's Mickey Mouse.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): A little Orlando magic captured on home video by the Duffield family of Vineland, New Jersey.

UNIDENTIFIED FEMALE: And there's my mom and dad.

MESERVE: Fun? Absolutely. But even here the threat of terrorism is with them.

KIM DUFFIELD, TOURIST: We're from the Northeast area, which is near New York and Washington, D.C., so I think we live with that all the time, the fear.

MESERVE: The Orlando area is the number one family tourist destination in the world, home to Disney World, Universal Studios and scores of other amusements. Local emergency officials worry about security a lot and they are dumbfounded that Orlando is not getting any urban security grant money this year from the Department of Homeland Security.

SHERIFF KEVIN BEARY, ORANGE COUNTY, FLORIDA: Quite frankly, I was flabbergasted.

MESERVE: Flabbergasted because theme parks have been mentioned as possible terrorist targets, the threat seen as great enough to permanently restrict air space over Disney World.

HEART: I go to bed worrying about it at night and I wake up every morning worrying about it. And it's time that they start worrying about it in Washington, D.C. MESERVE (on camera): The Department of Homeland Security says it considers a variety of factors in awarding the grants, including the number of threat investigations in a city, the amount of critical infrastructure and, most important, the population.

JOSH FILLER, DEPARTMENT OF HOMELAND SECURITY: Well, the way we do the population numbers is specifically within the city limits, the legal boundaries of the city.

MESERVE (voice-over): Under this formula, Omaha, Nebraska got $5 million. Omaha does have twice the population of Orlando, but the metro Orlando area has twice as many people as metro Omaha, and far more visitors.

REP. RIC KELLER (R), FLORIDA: For the Department of Homeland Security to say we only look within the city limits, 185,000, and we ignore the 1.6 million people in greater Orlando and we ignore the 43 million tourists, is absolutely brain dead.

MESERVE: Brain dead, says Keller, because local emergency personnel have to protect everyone, not just citizens. Orlando area officials are asking DHS to change its mind and its funding formula, which they say relies too much on math and not enough on common sense to keep families like the Duffields safe as well as happy.

UNIDENTIFIED CHILD: Bye, Disney. We'll miss you.

MESERVE: Jeanne Meserve, CNN, Orlando, Florida.

(END VIDEOTAPE)

COSTELLO: States are still ill prepared to handle terrorism. An independent report is saying that no states are fully prepared to handle a bioterrorism attack. The states that come closest, Florida and North Carolina. The report looked at several criteria, including vaccine delivery and how much is being spent on public health. The states with the worst ranking? Massachusetts and Alaska.

Los Angeles International Airport is stepping up security to protect airliners from possible missile attacks. Authorities say the availability of shoulder fired missiles on the black market is one reason for the security increase, but they say there is no immediate threat to any aircraft, if that makes you feel any better. Among the new measures are extra helicopter surveillance and increased police patrols.

The U.S. Defense Department has found several instances of Marines abusing Iraqi prisoners. Among the incidents, burning a detainee's hands with an alcohol-based cleanser, ordering teenage looters to kneel beside holes and then firing a pistol in a mock execution and shocking a detainee with an electric transformer and watching him dance while being jolted.

The documents show 10 substantiated incidents of abuse. Several Marines have now been court-martialed. President Bush has given out three presidential Medal of Freedom awards, but some Democrats are criticizing the choices, especially former CIA Director George Tenet. The agency, under Tenet's direction, was criticized for intelligence failures leading up to the 9/11 terrorist attacks and the Iraq war. Medals also went to former Iraqi civilian administrator Paul Bremer and Retired General Tommy Franks.

When it comes to U.S. strategy in Iraq, Senator McCain says the problems go far beyond Secretary Rumsfeld. McCain is looking ahead and says he doesn't like what he sees. He says the U.S. has suffered too many casualties in a conflict that's far from over.

(BEGIN VIDEO CLIP, COURTESY ABC NEWS)

SEN. JOHN MCCAIN (R), ARIZONA: I think we're going to be in Iraq for years and years. The question is, is whether we'll be able to reduce American casualties. We've been in Korea for 50 years. We've been in Germany for more than 50 years. We've been in Bosnia for 12 years. Americans are perfectly content with that. We've got to get the casualties down.

The key to success here, Jonathan, is, one, get this election, even if it's flawed, done at the end of January and train Iraqi police and military to take over the security job, American troops move into enclaves. That's the perfect scenario.

I have to tell you I'm very, very worried. I'm very worried. We've had success in the north and the south. They have great difficulty in the so-called Sunni Triangle.

(END VIDEO CLIP)

COSTELLO: We're going to have much more on Senator John McCain's remarks in the 6:00 hour of DAYBREAK.

Right now, we want to take you live to Athens, Greece where a hostage drama is being played out. Just about, oh, four or five hours ago, at least two gunmen boarded that bus you're seeing right now and took 26 passengers on board hostage. We understand some of those passengers have now been released.

Journalist Anthee Carassavas is in -- do we have Anthee?

We do not have Anthee.

But we do know that at least five hostages have been let go, some of them for health reasons. Greek authorities are surrounding that bus. You can't see them in that picture, but they have been talking to the hostage takers, at least we think so. Some of the people on board that bus have cell phones and the hostage takers are allowing them to use those cell phones to call their loved ones and also to call authorities. Russian officials have also been called in, because we believe the nationality of the hostage takers is, indeed, Russian, although we're not 100 percent sure of that.

When we get Anthee back, of course we'll get her on the line and she'll have much more information to pass along to you.

In News Across America this morning, thousands of music fans crowded into the convention center in Arlington, Texas to remember "Dimebag" Darrell Abbott. The guitarist was shot and killed on stage last week in Columbus, Ohio. The crowd gave the loudest cheers to Abbott's brother and band mate, Vinnie Paul.

There are serious election questions in San Diego. The city's incumbent mayor may have lost the election, but has already been sworn in as the winner. The San Diego "Union Tribune" reports that challenger Donna Frye lost by 2,100 votes, but there are more than 4,000 write-in votes for Frye that were never counted. The city is also reviewing nearly 400,000 absentee and provisional ballots.

Now that the campaign is over, Jenna Bush plans to become a full- time teacher. The "Washington Post" is reporting that the first daughter will work at a special charter school in Washington. The school serves mostly Hispanic and African children -- African-American children, rather.

Much more to cover this hour on DAYBREAK.

He's back, Viktor Yushchenko returns to Ukraine and the poisoned presidential candidate is getting the orange carpet treatment. We'll explain at 39 minutes past.

But first, homeland security chief Tom Ridge, he's packing up his office, but not without taking some parting shots. We'll go beyond the sound bite at 15 minutes after.

But first, here's a look at what else is making news this Wednesday morning, December 15.

(COMMERCIAL BREAK)

COSTELLO: All right, I understand we have journalist Anthee Carassavas back on the phone line for that breaking news that's coming out of Athens, Greece this morning, actually in a suburb. For the past several hours, we've been watching this bus. On board, hostage takers. On board the bus, at least 26 passengers. We believe some of those passengers have been released, but we're not sure.

So let's get Anthee on the line right now -- Anthee, bring us up to date about what's going on.

ANTHEE CARASSAVAS, CNN CORRESPONDENT: Well, Carol, five passengers have been released within these last few minutes, three women, two men. This started about 15 to 20 minutes ago when the hijackers released a 55-year-old man. He was seen exiting this blue bus, his hands up in the air. He walked over to the other side and was taken away swiftly by police.

We understand that his release was for medical reasons. The purpose for the release and the selection of the other four hostages, we have no details and information about that from the authorities. What we do know, however, is that hijackers have been demanding from the start that they be provided, that they be afforded with a driver who will take them to the airport and fly them, depending on reports, either to Russia or some other undisclosed location.

Authorities, details are still very sketchy. The only solid piece of information that we have from the authorities that they have put out is a very brief statement referring to these two hijackers as simply foreigners. No national identity. Twenty-six passengers on board when the bus was seized by them en route to Athens from the outskirts of a district called Marathon.

Now, these hijackers, during the course of this six hour hostage taking, have, at various times, opened fire at police. No one has been injured. They have had a testy, heated relation with negotiators, especially in the start. Some of them, however, throughout the course, around four, the fifth hour, called into private radio stations, identifying themselves as, one of them identifying himself as Hassan, a Russian, demanding, of course, as we said before, a driver to be flown to Russia.

Now, police negotiators are there talking, trying to liaise with them and to gain the additional release of more hostages, as many as they can, so as to diffuse the situation. Interesting to note, the Albanian ambassador is here at the site. We haven't seen any Russians yet. A very strong presence of police forces and special forces, snipers on the rooftops of neighboring buildings girdling this area.

Again, the bus we see immobilized, idle, flanked by a police car and another police vehicle blocking its ability to move and simply being pushed away.

COSTELLO: A couple of...

CARASSAVAS: Carol...

COSTELLO: Let me interrupt for just a second, Anthee.

CARASSAVAS: Yes, Carol?

COSTELLO: A couple of questions, just to clarify. This bus, is it a tourism bus or just a passenger bus?

CARASSAVAS: It's a passenger bus, which is a public transport bus basically dealing with commuters the immediate Athens region. The Marathon is a district about 20 some kilometers outside of the Athens center. So this particular route and bus serves long distance commuters.

COSTELLO: Do we know how the hostage takers got on board the bus? Or were they on board the bus with their weapons?

CARASSAVAS: They were not on board. What we do understand from police and, of course, from the testimony of the driver -- that's the most important piece of information that they have so far, police say -- that these, that these armed gunmen boarded the bus on the third or fourth stop as the bus was traveling down to Athens from Marathon. They walked -- they boarded onto the bus and flashed their rifles, and that's when the driver immediately brought the coach to a screeching halt, opened doors, thinking fast, hoping that some of these passengers could escape.

He managed to, his co-driver and another female passenger.

COSTELLO: Another question, it seems, at face value, odd that these hostage takers would be Russian or Albanian.

CARASSAVAS: I'm sorry, repeat that, Carol.

COSTELLO: Russian or Albanian, the hostage takers, that may be their nationality. Is that odd?

CARASSAVAS: That's not odd. We have had cases in the past with hijackers, with Albanian hijackers. And, in fact, one of the most unfortunate hijacking cases we faced a couple of years ago included an Albanian hijacker. There have been -- Greece, as you may or may not know, has a great number of Albanian immigrants who have migrated here in the past year. Russian immigrants also a strong part of the minority here.

It's not odd to hear that these foreigners may, in fact, prove to be Albanian or Russian. It's whether it seems that authorities believe that it's a -- that they would be so much more concerned if they are Russian. At some point they were fearing potential terrorist murders. We haven't seen any kind of Albanian terrorist activity here whatsoever.

But, again, authorities trying to decipher, trying to determine the identity of these hijackers.

COSTELLO: All right, we'll check back with you.

Anthee Carassavas reporting live from near Athens, Greece this morning, where that hostage drama just keeps on going.

Your news, money, weather and sports.

It's 5:19 Eastern.

Here's what's all new this morning.

The Air Force is flying more cargo around Iraq. It's an effort to cut down on attacks against American convoys. But more surface to air missile attacks are expected. The U.S. takes about 100 casualties each month from convoy attacks.

In money news, the Federal Reserve raised a key interest rate another 1/4 percent. That's the fifth increase this year. The overnight lending rate is now 2.25 percent.

In culture, California Governor Arnold Schwarzenegger is coming back to the big screen. He will make a cameo appearance in the movie "The Kids and I," which stars his friend Tom Arnold. The movie should be released some time next year.

In sports, baseball in Washington may not be a done deal just yet. The city council changed the proposed stadium deal to say that half the cost must be privately financed. That change could prompt major league baseball to find a new city to host the team.

And that just seems so patently unfair -- Chad.

MYERS: Oh, it sure does. They still want to play in RFK starting next year. But they were going to build a new stadium down by the shipyard, down south of the Capitol, but right now they said wait a minute, we need some more private funds for that.

COSTELLO: I know, tens of millions of dollars, this stadium is going to cost. And they want to tax the residents of D.C. to build the whole darned stadium. What's wrong with private money?

MYERS: It seems nothing to me, Carol. Yes, I don't know how baseball is going to go over at RFK, but they've done it before. So we'll see. At least for a while. That's only a temporary home. That's not the solution.

(WEATHER REPORT)

COSTELLO: Chad, do you like "Desperate Housewives?" You know, the TV show?

MYERS: I just like that commercial that "Monday Night Football" put on.

COSTELLO: Oh, as do many, many men in this country. Well, we have a fun e-mail question based on that show and based on a new study by this ad agency. Listen to this. Maybe you have one in your own home. Maybe you are one. We're talking about "Desperate Housewives," the ABC new hit TV show about unhappy suburban women. And you just know a TV show has scored a place in pop culture history when it inspires a formal study. So here it is.

This ad agency asked a thousand women what they think about their role in their own home. And they found four main mind sets.

There are house proud women, their homes a source of personal pride. Think Martha Stewart. There are treading water women. Their home is just another burden in an over stuffed life. Think Roseanne Barr. I think that one would be me. Keeping up with the Jones women. Their homes are the ultimate status symbol. Think Annette Bening's character in "American Beauty." And then there are keep it simple women, who run their homes by realistic, practical standards. Think Debra Berone on "Everybody Loves Raymond."

What's Sally like, Chad?

MYERS: Trying to get day by day through the Grant situation, Carol.

COSTELLO: Through the new baby situation? MYERS: Through the new baby. Every thing is turned upside down for a while.

COSTELLO: Sally is just too exhausted.

MYERS: Yes.

COSTELLO: Well, anyway, we're going to get all the juicy details of this study in the next hour of DAYBREAK with our contributor J.J. Ramberg. In the meantime, we want to hear from you this morning because we'd like to have some fun. After all, it is Tuesday.

Which type of wife lives in your house? And if you are a wife, which type of wife are you? Daybreak@cnn.com. Daybreak@cnn.com. We'll dish the dirt throughout the show.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Oh, Chad, we're glad you're back.

MYERS: Oh, it's so nice. I actually got a good night's sleep last night, Carol, for the first time in a long time.

COSTELLO: Oh, your baby is a screamer, isn't he?

MYERS: Yes. It's quiet or screaming. There's nothing in between.

COSTELLO: I'm glad I don't know what that's like.

But we did put together a top 10 list for you, because we know you miss your baby, right? And we know you're absolutely glad to be back at work, and we've got the top 10 reasons why you are glad to be back at work.

MYERS: Uh-oh.

COSTELLO: Number 10, that noise you're hearing?

MYERS: Yes.

COSTELLO: It's just the producer screaming.

MYERS: Yes, but that's only in my left ear, because that's where I have my little cord. But at home you get screaming in both ears.

COSTELLO: Oh, isn't that for sure?

Number nine, the only wipe here is between video.

MYERS: Yes, I'm getting really good at those Huggie things.

COSTELLO: Number eight, the DAYBREAK music is so much better than that corny lullaby Sally keeps singing. MYERS: You are not going to believe this. My baby loves Boston.

COSTELLO: Really?

MYERS: Yes.

COSTELLO: The group Boston?

MYERS: The group Boston, yes. He goes right to sleep when you put Boston on.

COSTELLO: That's just wrong.

Number seven, that moisture you're experiencing is on the weather map.

MYERS: Yes, instead of on the wall.

COSTELLO: Number six, the only baby talk you hear is from Uncle Dave, your weather producer.

MYERS: And, of course, Bob Vandillan (ph), who's the CNN headlines guy. Yes.

COSTELLO: Of course.

Number five, your wakeup time may still be 2:00 a.m., but at least when you're at work you can get some sleep.

MYERS: You know what? He's -- he eats for an hour, he sleeps for an hour, then he's back up again. It's just crazy, so.

COSTELLO: Number four, that smell? It's just the CNN coffee.

MYERS: Yes. And I always used to bring in good coffee and they drank it all. Now I'm drinking something, I don't even know what this swill is.

COSTELLO: Well, you're going to have to go shopping after work.

MYERS: I'll have to go -- yes.

COSTELLO: Number three, now that you have a baby, you can better deal with the ones who work here.

Number two, 50 percent fewer spitting up episodes.

MYERS: He doesn't spit up.

COSTELLO: Not yet, anyway.

MYERS: So far. Not yet.

COSTELLO: Yes.

MYERS: OK. COSTELLO: And the number one reason you are glad to be back at work, at work the only diaper you have to change is your own.

MYERS: Oh, yes, my supply of Depends over here on the right side.

COSTELLO: We are...

MYERS: Carol?

COSTELLO: Yes?

MYERS: I have a picture of him if you want to see it.

COSTELLO: We do.

MYERS: Yes. I have a picture here. Here he is! This is the Christmas picture. Sent it out yesterday. You'll actually be getting one. It says, "Mr. and Mrs. to you, scary -- and there he is!

COSTELLO: Look at little Grant.

MYERS: Grant Everett (ph). He has my...

COSTELLO: He has as big a head as you do, Chad.

MYERS: He does. He could be the weatherman. He's Grant, the big headed weatherman.

COSTELLO: Get out of here.

Here's what's all new in the next half hour of DAYBREAK.

We're going to take you back live to Athens, Greece to give you an update on that hostage take -- to give you an update on that bus there. Hostage takers are on board. They're holding, about, oh, 20 people hostage. We'll tell you if it's ending soon. We hope so.

Plus, injured but not defeated -- Ukraine opposition leader Viktor Yushchenko visits his supporters in tent city. We'll have a report live from the scene.

And a reminder, our E-mail Question of the Day, which type of wife lives in your home? Which type of wife are you? Send us your e- mails, daybreak@cnn.com.

(COMMERCIAL BREAK)

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Aired December 15, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, in Greece, a routine morning commute becomes a national drama as passengers on board that bus you're looking at live are taken hostage. We take you live to Athens shortly.
Plus, the number one family tourist destination in the world -- the question this morning, is Homeland Security playing Mickey Mouse with Orlando?

And talk about your plus sizes, elephants on the fashion runway. Only Jeanne Moos can explain this one.

It is Wednesday, December 15.

This is DAYBREAK.

Good morning to you.

From the Time Warner Center in New York, I'm Carol Costello.

Thank you for joining us.

Now in the news, going on right now, a hostage situation in a suburb of Athens, Greece. It began six hours ago when gunmen seized a bus with more than two dozen passengers. They're demanding to be taken to the airport, but authorities are not budging. Within the last few minutes, though, a few hostages, at least five of them, have been released.

Outside government buildings in Kiev, Ukraine at this hour, supporters of the Orange Revolution hear from their leader, Viktor Yushchenko. A runoff in the highly suspect presidential elections is 11 days away now.

Preparing to face justice, this morning an announcement that one of Saddam Hussein's top associates, Ali Hassan al-Majid, better known as "Chemical Ali," will go on trial before the end of December. He'll be the first member of the former regime to stand trial.

And the U.S. Air Force is stepping up its cargo flights across Iraq. That means fewer supply convoys for U.S. troops and maybe, maybe fewer deadly insurgent attacks on those convoys.

To the forecast center in Atlanta.

And Chad is back -- good morning. CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

It is so nice to be back, because I actually got a...

COSTELLO: It's so nice to have you back.

MYERS: I got a great night's sleep last night for the first time in two weeks.

Good morning, everybody.

(WEATHER REPORT)

COSTELLO: We begin this hour with a CNN "Security Watch." Earlier this month, the Department of Homeland Security earmarked nearly a billion dollars for 50 at risk American cities. But now some serious questions are being raised about the process and about the cities being left off the list.

CNN homeland security correspondent Jeanne Meserve looks at one city's concerns.

(BEGIN VIDEO TAPE)

UNIDENTIFIED FEMALE: It's Mickey Mouse.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): A little Orlando magic captured on home video by the Duffield family of Vineland, New Jersey.

UNIDENTIFIED FEMALE: And there's my mom and dad.

MESERVE: Fun? Absolutely. But even here the threat of terrorism is with them.

KIM DUFFIELD, TOURIST: We're from the Northeast area, which is near New York and Washington, D.C., so I think we live with that all the time, the fear.

MESERVE: The Orlando area is the number one family tourist destination in the world, home to Disney World, Universal Studios and scores of other amusements. Local emergency officials worry about security a lot and they are dumbfounded that Orlando is not getting any urban security grant money this year from the Department of Homeland Security.

SHERIFF KEVIN BEARY, ORANGE COUNTY, FLORIDA: Quite frankly, I was flabbergasted.

MESERVE: Flabbergasted because theme parks have been mentioned as possible terrorist targets, the threat seen as great enough to permanently restrict air space over Disney World.

HEART: I go to bed worrying about it at night and I wake up every morning worrying about it. And it's time that they start worrying about it in Washington, D.C. MESERVE (on camera): The Department of Homeland Security says it considers a variety of factors in awarding the grants, including the number of threat investigations in a city, the amount of critical infrastructure and, most important, the population.

JOSH FILLER, DEPARTMENT OF HOMELAND SECURITY: Well, the way we do the population numbers is specifically within the city limits, the legal boundaries of the city.

MESERVE (voice-over): Under this formula, Omaha, Nebraska got $5 million. Omaha does have twice the population of Orlando, but the metro Orlando area has twice as many people as metro Omaha, and far more visitors.

REP. RIC KELLER (R), FLORIDA: For the Department of Homeland Security to say we only look within the city limits, 185,000, and we ignore the 1.6 million people in greater Orlando and we ignore the 43 million tourists, is absolutely brain dead.

MESERVE: Brain dead, says Keller, because local emergency personnel have to protect everyone, not just citizens. Orlando area officials are asking DHS to change its mind and its funding formula, which they say relies too much on math and not enough on common sense to keep families like the Duffields safe as well as happy.

UNIDENTIFIED CHILD: Bye, Disney. We'll miss you.

MESERVE: Jeanne Meserve, CNN, Orlando, Florida.

(END VIDEOTAPE)

COSTELLO: States are still ill prepared to handle terrorism. An independent report is saying that no states are fully prepared to handle a bioterrorism attack. The states that come closest, Florida and North Carolina. The report looked at several criteria, including vaccine delivery and how much is being spent on public health. The states with the worst ranking? Massachusetts and Alaska.

Los Angeles International Airport is stepping up security to protect airliners from possible missile attacks. Authorities say the availability of shoulder fired missiles on the black market is one reason for the security increase, but they say there is no immediate threat to any aircraft, if that makes you feel any better. Among the new measures are extra helicopter surveillance and increased police patrols.

The U.S. Defense Department has found several instances of Marines abusing Iraqi prisoners. Among the incidents, burning a detainee's hands with an alcohol-based cleanser, ordering teenage looters to kneel beside holes and then firing a pistol in a mock execution and shocking a detainee with an electric transformer and watching him dance while being jolted.

The documents show 10 substantiated incidents of abuse. Several Marines have now been court-martialed. President Bush has given out three presidential Medal of Freedom awards, but some Democrats are criticizing the choices, especially former CIA Director George Tenet. The agency, under Tenet's direction, was criticized for intelligence failures leading up to the 9/11 terrorist attacks and the Iraq war. Medals also went to former Iraqi civilian administrator Paul Bremer and Retired General Tommy Franks.

When it comes to U.S. strategy in Iraq, Senator McCain says the problems go far beyond Secretary Rumsfeld. McCain is looking ahead and says he doesn't like what he sees. He says the U.S. has suffered too many casualties in a conflict that's far from over.

(BEGIN VIDEO CLIP, COURTESY ABC NEWS)

SEN. JOHN MCCAIN (R), ARIZONA: I think we're going to be in Iraq for years and years. The question is, is whether we'll be able to reduce American casualties. We've been in Korea for 50 years. We've been in Germany for more than 50 years. We've been in Bosnia for 12 years. Americans are perfectly content with that. We've got to get the casualties down.

The key to success here, Jonathan, is, one, get this election, even if it's flawed, done at the end of January and train Iraqi police and military to take over the security job, American troops move into enclaves. That's the perfect scenario.

I have to tell you I'm very, very worried. I'm very worried. We've had success in the north and the south. They have great difficulty in the so-called Sunni Triangle.

(END VIDEO CLIP)

COSTELLO: We're going to have much more on Senator John McCain's remarks in the 6:00 hour of DAYBREAK.

Right now, we want to take you live to Athens, Greece where a hostage drama is being played out. Just about, oh, four or five hours ago, at least two gunmen boarded that bus you're seeing right now and took 26 passengers on board hostage. We understand some of those passengers have now been released.

Journalist Anthee Carassavas is in -- do we have Anthee?

We do not have Anthee.

But we do know that at least five hostages have been let go, some of them for health reasons. Greek authorities are surrounding that bus. You can't see them in that picture, but they have been talking to the hostage takers, at least we think so. Some of the people on board that bus have cell phones and the hostage takers are allowing them to use those cell phones to call their loved ones and also to call authorities. Russian officials have also been called in, because we believe the nationality of the hostage takers is, indeed, Russian, although we're not 100 percent sure of that.

When we get Anthee back, of course we'll get her on the line and she'll have much more information to pass along to you.

In News Across America this morning, thousands of music fans crowded into the convention center in Arlington, Texas to remember "Dimebag" Darrell Abbott. The guitarist was shot and killed on stage last week in Columbus, Ohio. The crowd gave the loudest cheers to Abbott's brother and band mate, Vinnie Paul.

There are serious election questions in San Diego. The city's incumbent mayor may have lost the election, but has already been sworn in as the winner. The San Diego "Union Tribune" reports that challenger Donna Frye lost by 2,100 votes, but there are more than 4,000 write-in votes for Frye that were never counted. The city is also reviewing nearly 400,000 absentee and provisional ballots.

Now that the campaign is over, Jenna Bush plans to become a full- time teacher. The "Washington Post" is reporting that the first daughter will work at a special charter school in Washington. The school serves mostly Hispanic and African children -- African-American children, rather.

Much more to cover this hour on DAYBREAK.

He's back, Viktor Yushchenko returns to Ukraine and the poisoned presidential candidate is getting the orange carpet treatment. We'll explain at 39 minutes past.

But first, homeland security chief Tom Ridge, he's packing up his office, but not without taking some parting shots. We'll go beyond the sound bite at 15 minutes after.

But first, here's a look at what else is making news this Wednesday morning, December 15.

(COMMERCIAL BREAK)

COSTELLO: All right, I understand we have journalist Anthee Carassavas back on the phone line for that breaking news that's coming out of Athens, Greece this morning, actually in a suburb. For the past several hours, we've been watching this bus. On board, hostage takers. On board the bus, at least 26 passengers. We believe some of those passengers have been released, but we're not sure.

So let's get Anthee on the line right now -- Anthee, bring us up to date about what's going on.

ANTHEE CARASSAVAS, CNN CORRESPONDENT: Well, Carol, five passengers have been released within these last few minutes, three women, two men. This started about 15 to 20 minutes ago when the hijackers released a 55-year-old man. He was seen exiting this blue bus, his hands up in the air. He walked over to the other side and was taken away swiftly by police.

We understand that his release was for medical reasons. The purpose for the release and the selection of the other four hostages, we have no details and information about that from the authorities. What we do know, however, is that hijackers have been demanding from the start that they be provided, that they be afforded with a driver who will take them to the airport and fly them, depending on reports, either to Russia or some other undisclosed location.

Authorities, details are still very sketchy. The only solid piece of information that we have from the authorities that they have put out is a very brief statement referring to these two hijackers as simply foreigners. No national identity. Twenty-six passengers on board when the bus was seized by them en route to Athens from the outskirts of a district called Marathon.

Now, these hijackers, during the course of this six hour hostage taking, have, at various times, opened fire at police. No one has been injured. They have had a testy, heated relation with negotiators, especially in the start. Some of them, however, throughout the course, around four, the fifth hour, called into private radio stations, identifying themselves as, one of them identifying himself as Hassan, a Russian, demanding, of course, as we said before, a driver to be flown to Russia.

Now, police negotiators are there talking, trying to liaise with them and to gain the additional release of more hostages, as many as they can, so as to diffuse the situation. Interesting to note, the Albanian ambassador is here at the site. We haven't seen any Russians yet. A very strong presence of police forces and special forces, snipers on the rooftops of neighboring buildings girdling this area.

Again, the bus we see immobilized, idle, flanked by a police car and another police vehicle blocking its ability to move and simply being pushed away.

COSTELLO: A couple of...

CARASSAVAS: Carol...

COSTELLO: Let me interrupt for just a second, Anthee.

CARASSAVAS: Yes, Carol?

COSTELLO: A couple of questions, just to clarify. This bus, is it a tourism bus or just a passenger bus?

CARASSAVAS: It's a passenger bus, which is a public transport bus basically dealing with commuters the immediate Athens region. The Marathon is a district about 20 some kilometers outside of the Athens center. So this particular route and bus serves long distance commuters.

COSTELLO: Do we know how the hostage takers got on board the bus? Or were they on board the bus with their weapons?

CARASSAVAS: They were not on board. What we do understand from police and, of course, from the testimony of the driver -- that's the most important piece of information that they have so far, police say -- that these, that these armed gunmen boarded the bus on the third or fourth stop as the bus was traveling down to Athens from Marathon. They walked -- they boarded onto the bus and flashed their rifles, and that's when the driver immediately brought the coach to a screeching halt, opened doors, thinking fast, hoping that some of these passengers could escape.

He managed to, his co-driver and another female passenger.

COSTELLO: Another question, it seems, at face value, odd that these hostage takers would be Russian or Albanian.

CARASSAVAS: I'm sorry, repeat that, Carol.

COSTELLO: Russian or Albanian, the hostage takers, that may be their nationality. Is that odd?

CARASSAVAS: That's not odd. We have had cases in the past with hijackers, with Albanian hijackers. And, in fact, one of the most unfortunate hijacking cases we faced a couple of years ago included an Albanian hijacker. There have been -- Greece, as you may or may not know, has a great number of Albanian immigrants who have migrated here in the past year. Russian immigrants also a strong part of the minority here.

It's not odd to hear that these foreigners may, in fact, prove to be Albanian or Russian. It's whether it seems that authorities believe that it's a -- that they would be so much more concerned if they are Russian. At some point they were fearing potential terrorist murders. We haven't seen any kind of Albanian terrorist activity here whatsoever.

But, again, authorities trying to decipher, trying to determine the identity of these hijackers.

COSTELLO: All right, we'll check back with you.

Anthee Carassavas reporting live from near Athens, Greece this morning, where that hostage drama just keeps on going.

Your news, money, weather and sports.

It's 5:19 Eastern.

Here's what's all new this morning.

The Air Force is flying more cargo around Iraq. It's an effort to cut down on attacks against American convoys. But more surface to air missile attacks are expected. The U.S. takes about 100 casualties each month from convoy attacks.

In money news, the Federal Reserve raised a key interest rate another 1/4 percent. That's the fifth increase this year. The overnight lending rate is now 2.25 percent.

In culture, California Governor Arnold Schwarzenegger is coming back to the big screen. He will make a cameo appearance in the movie "The Kids and I," which stars his friend Tom Arnold. The movie should be released some time next year.

In sports, baseball in Washington may not be a done deal just yet. The city council changed the proposed stadium deal to say that half the cost must be privately financed. That change could prompt major league baseball to find a new city to host the team.

And that just seems so patently unfair -- Chad.

MYERS: Oh, it sure does. They still want to play in RFK starting next year. But they were going to build a new stadium down by the shipyard, down south of the Capitol, but right now they said wait a minute, we need some more private funds for that.

COSTELLO: I know, tens of millions of dollars, this stadium is going to cost. And they want to tax the residents of D.C. to build the whole darned stadium. What's wrong with private money?

MYERS: It seems nothing to me, Carol. Yes, I don't know how baseball is going to go over at RFK, but they've done it before. So we'll see. At least for a while. That's only a temporary home. That's not the solution.

(WEATHER REPORT)

COSTELLO: Chad, do you like "Desperate Housewives?" You know, the TV show?

MYERS: I just like that commercial that "Monday Night Football" put on.

COSTELLO: Oh, as do many, many men in this country. Well, we have a fun e-mail question based on that show and based on a new study by this ad agency. Listen to this. Maybe you have one in your own home. Maybe you are one. We're talking about "Desperate Housewives," the ABC new hit TV show about unhappy suburban women. And you just know a TV show has scored a place in pop culture history when it inspires a formal study. So here it is.

This ad agency asked a thousand women what they think about their role in their own home. And they found four main mind sets.

There are house proud women, their homes a source of personal pride. Think Martha Stewart. There are treading water women. Their home is just another burden in an over stuffed life. Think Roseanne Barr. I think that one would be me. Keeping up with the Jones women. Their homes are the ultimate status symbol. Think Annette Bening's character in "American Beauty." And then there are keep it simple women, who run their homes by realistic, practical standards. Think Debra Berone on "Everybody Loves Raymond."

What's Sally like, Chad?

MYERS: Trying to get day by day through the Grant situation, Carol.

COSTELLO: Through the new baby situation? MYERS: Through the new baby. Every thing is turned upside down for a while.

COSTELLO: Sally is just too exhausted.

MYERS: Yes.

COSTELLO: Well, anyway, we're going to get all the juicy details of this study in the next hour of DAYBREAK with our contributor J.J. Ramberg. In the meantime, we want to hear from you this morning because we'd like to have some fun. After all, it is Tuesday.

Which type of wife lives in your house? And if you are a wife, which type of wife are you? Daybreak@cnn.com. Daybreak@cnn.com. We'll dish the dirt throughout the show.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Oh, Chad, we're glad you're back.

MYERS: Oh, it's so nice. I actually got a good night's sleep last night, Carol, for the first time in a long time.

COSTELLO: Oh, your baby is a screamer, isn't he?

MYERS: Yes. It's quiet or screaming. There's nothing in between.

COSTELLO: I'm glad I don't know what that's like.

But we did put together a top 10 list for you, because we know you miss your baby, right? And we know you're absolutely glad to be back at work, and we've got the top 10 reasons why you are glad to be back at work.

MYERS: Uh-oh.

COSTELLO: Number 10, that noise you're hearing?

MYERS: Yes.

COSTELLO: It's just the producer screaming.

MYERS: Yes, but that's only in my left ear, because that's where I have my little cord. But at home you get screaming in both ears.

COSTELLO: Oh, isn't that for sure?

Number nine, the only wipe here is between video.

MYERS: Yes, I'm getting really good at those Huggie things.

COSTELLO: Number eight, the DAYBREAK music is so much better than that corny lullaby Sally keeps singing. MYERS: You are not going to believe this. My baby loves Boston.

COSTELLO: Really?

MYERS: Yes.

COSTELLO: The group Boston?

MYERS: The group Boston, yes. He goes right to sleep when you put Boston on.

COSTELLO: That's just wrong.

Number seven, that moisture you're experiencing is on the weather map.

MYERS: Yes, instead of on the wall.

COSTELLO: Number six, the only baby talk you hear is from Uncle Dave, your weather producer.

MYERS: And, of course, Bob Vandillan (ph), who's the CNN headlines guy. Yes.

COSTELLO: Of course.

Number five, your wakeup time may still be 2:00 a.m., but at least when you're at work you can get some sleep.

MYERS: You know what? He's -- he eats for an hour, he sleeps for an hour, then he's back up again. It's just crazy, so.

COSTELLO: Number four, that smell? It's just the CNN coffee.

MYERS: Yes. And I always used to bring in good coffee and they drank it all. Now I'm drinking something, I don't even know what this swill is.

COSTELLO: Well, you're going to have to go shopping after work.

MYERS: I'll have to go -- yes.

COSTELLO: Number three, now that you have a baby, you can better deal with the ones who work here.

Number two, 50 percent fewer spitting up episodes.

MYERS: He doesn't spit up.

COSTELLO: Not yet, anyway.

MYERS: So far. Not yet.

COSTELLO: Yes.

MYERS: OK. COSTELLO: And the number one reason you are glad to be back at work, at work the only diaper you have to change is your own.

MYERS: Oh, yes, my supply of Depends over here on the right side.

COSTELLO: We are...

MYERS: Carol?

COSTELLO: Yes?

MYERS: I have a picture of him if you want to see it.

COSTELLO: We do.

MYERS: Yes. I have a picture here. Here he is! This is the Christmas picture. Sent it out yesterday. You'll actually be getting one. It says, "Mr. and Mrs. to you, scary -- and there he is!

COSTELLO: Look at little Grant.

MYERS: Grant Everett (ph). He has my...

COSTELLO: He has as big a head as you do, Chad.

MYERS: He does. He could be the weatherman. He's Grant, the big headed weatherman.

COSTELLO: Get out of here.

Here's what's all new in the next half hour of DAYBREAK.

We're going to take you back live to Athens, Greece to give you an update on that hostage take -- to give you an update on that bus there. Hostage takers are on board. They're holding, about, oh, 20 people hostage. We'll tell you if it's ending soon. We hope so.

Plus, injured but not defeated -- Ukraine opposition leader Viktor Yushchenko visits his supporters in tent city. We'll have a report live from the scene.

And a reminder, our E-mail Question of the Day, which type of wife lives in your home? Which type of wife are you? Send us your e- mails, daybreak@cnn.com.

(COMMERCIAL BREAK)

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