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CNN Live At Daybreak

Abbas Elected Palestinian President; Baghdad Deputy Police Chief Assassinated

Aired January 10, 2005 - 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.


KELLY WALLACE, CNN ANCHOR: Straight ahead on DAYBREAK:
In storm-battered Southern California, a bridge, a rope, a father and their rain-swollen creek. We'll show you happened in just a few minutes.

Plus, new video from Banda Aceh on the day the ocean rose up, sweeping away lives, homes and hopes. Our John Kings joins us live at the half hour.

And insurgents bring more fear and more death to Iraq as the nation prepares to elect new leaders.

It is Monday, January 10, and this is DAYBREAK.

Good morning to you. From the Time Warner Center in New York, I am Kelly Wallace, in for Carol Costello.

"Now in the News":

Mahmoud Abbas prepares to take over the reins of the fractured Palestinian leadership. He declares victory in the presidential election and predicts a - quote - "difficult mission ahead." We'll take you live to the West Bank in less than a minute.

In Baghdad, 20 days until those post-Saddam elections and no let up in the violence. The latest victims: a top police official and his son. We will take you live to the ancient capital in three minutes.

In Texas, a key figure in the Abu Ghraib prison scandal heads to court this morning. The stakes are high for specialist Charles Graner Jr. Opening statements are just five hours away.

And in storm-battered Southern California, a relentless weather system brings mudslides, heartache and frustration to thousands. At least eight deaths are blamed on the storm.

Lots of weather news this morning. Time to say good morning to Chad Myers.

Hi, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Kelly. I didn't expect you there this morning.

WALLACE: I know. Surprise, surprise.

MYERS: (UNINTELLIGIBLE) it's you.

WALLACE: Exactly. Carol - we hope Carol's feeling a bit better.

MYERS: She's a little under the weather this morning...

WALLACE: Yes.

MYERS: ...but that's all right. We'll get - we'll get her back later on this week. Thanks for filling in, Kelly.

(WEATHER REPORT)

WALLACE: Back now to our top story, a historic election in the Arab world: near leader for the Palestinians, and new hopes for Mid East peace efforts.

Our Guy Raz is in the West Bank city of Ramallah with the latest.

And Guy, what is the latest word on when we will get the official results of Sunday's election?

GUY RAZ, CNN CORRESPONDENT: Well, Kelly we're not - we're not expecting to get official results for a few more hours. But it's clear based on exit polls that Mahmoud Abbas, or Abu Mazen, will inherit the presidency of the Palestinian National Authority.

Certainly a momentous day for Palestinians across the West Bank and Gaza. Mahmoud Abbas, of course, regarded as a moderate, someone who is supported by the international community and by Israel. And most importantly, perhaps, a man who could revive the Middle East peace process.

Now just a short time ago, Mr. Abbas received congratulations from former U.S. President Jimmy Carter. President Carter is here leading an American delegation to - that was here as part of a group monitoring yesterday's election.

Here's what he had to say.

(BEGIN VIDEO CLIP)

JIMMY CARTER, FMR. U.S. PRESIDENT: This opens up an opportunity, in my opinion, for renewed peace negotiations and with an ultimate judgment of both peace and security, as well as justice. Long overdue for the Palestinian people. This can be done, obviously, in harmony with the adjacent state of Israel. The Palestinians in the West Bank and Gaza living peacefully alongside Israel, both sovereign nations and hopefully, ultimately becoming friends living completely at peace.

(END VIDEO CLIP)

RAZ: Kelly, there are still considerable challenges ahead for Abu Mazen, or Mahmoud Abbas. He now has to consolidate his power base. He doesn't have the same kind of grassroots support that his predecessor, Yasser Arafat, had. And crucially, he doesn't have the backing of militant groups.

Now, if Mahmoud Abbas is to enter negotiations with Israel with confidence, he has to win the backing of these groups. Israel has set several conditions for renewed peace talks, including clamping down on those militant groups. Israel would like to see an end to attacks against Israelis.

For his part, Mr. Abbas is asking Israel to ease conditions on Palestinians to end incursions, and also to end targeted assassinations of wanted Palestinian militants - Kelly.

WALLACE: And Guy, what do Palestinians believe is the first, immediate challenge facing Mahmoud Abbas?

RAZ: Well, right away, Mahmoud Abbas has to essentially get the house in order.

Of course, there's - the Palestinian National Authority has been marred by charges of corruption for the past four years. Mr. Abbas has to strengthen democratic institutions and public institutions. And then, he has to begin negotiations with Israel.

Now, of course, a lot of that depends on Israel's willingness to take part in those negotiations. But we've already had some signs from the Israeli Prime Minister Ariel Sharon's office that he is willing to meet with Mr. Abbas, perhaps as early as this week - Kelly.

WALLACE: All right. Guy Raz, reporting from the West Bank city of Ramallah. Thanks so much.

And again, we are expecting official announcements sometime around 7:00 a.m. Eastern Time.

In "The Fight for Iraq," Baghdad's deputy police chief and his son, a lieutenant on the police force, have been gunned down. The two men were on their way to work. It is the latest attack on the city's leadership.

CNN's Chris Lawrence joins us live from Baghdad with more.

And Chris, what's been the reaction so far to this latest violence?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Kelly, the violence that we've seen this morning was anything but random. These were targeted attacks aimed at specific people and places.

The Iraqi police tell us that they deputy police chief of Baghdad and his son were leaving for work this morning. Just as they were leaving their house, a gunman opened up, firing on their car and killed them both.

Also this morning, another man drove his car into the man gate of a police station on the southern outskirts of Baghdad. That explosion killed seven Iraqis there, some of them Iraqi policemen, some of them possibly civilians. But all of this violence is really just a continuation from that's happened in the past few days, where the deputy police chief of Samarra was also gunned down leaving for work, and three other high- ranking Iraqi officers were assassinated just in the last three days.

But these targets aren't just people. Also earlier this morning, explosives were detonated at a girls high school here in Baghdad. And an insurgent was killed while trying to blow up a boys middle school. Now, no children were hurt in these attacks, but both of these schools were being prepped to be used as voting centers during the elections. And across this country, you can see a definite pattern of violence trying to discourage people ahead of the election.

(BEGIN VIDEO CLIP)

PFC JONATHAN LUCAS, U.S. ARMY: Lately, we've been seeing a lot more. The mujahideen (ph) lives on laws (ph). We've been seeing at other places around where we - where we operate, so it's starting to pick up probably. I don't know. We're certainly worrying about those elections coming up.

(END VIDEO CLIP)

LAWRENCE: A lot of people are worried about those elections. But over the weekend, a group of Sunni Muslim clerics did meet with a senior U.S. official in the U.S. embassy here in Iraq. And from that conversation, they made this offer to the Americans, saying basically that they - if the Americans lay out a timetable for U.S. troops to withdraw from Iraq, they would call of the Sunni Muslim boycott of the election. That would be important, because although the Sunni Muslims are a minority in this country, it is important to have them participate to make the election and the vote as legitimate as possible. But as of right now, the U.S. embassy has no plans to lay out any such timetable - Kelly.

WALLACE: Chris, thanks so much. Chris Lawrence reporting from Baghdad.

The death toll now from the Asian tsunami is topping 140,000, and is expected to go much higher. Indonesians - Indonesia's health ministry says 77,000 people remain missing. Early figure - figures topping 155,000 were scaled down after it was learned some bodies were counted twice in Sri Lanka.

U.N. Secretary General Kofi Annan has toured the damage in the Maldives. Officials there say 14 of the nation's 280 inhabited islands have been evacuated, and nine of those are now uninhabitable.

And in Sumatra's Aceh province and parts of India, a measles immunization campaign in an effort to prevent an outbreak.

Some of the U.S. Marines in the region have moved past the task of delivering aid, and are now on to phase two. In Sri Lanka, teams of Marines have begun clearing and cleaning smaller towns that were laid waste by the tsunami.

For more on the Marines' mission, we are joined by CNN's Satinder Bindra. HE is in Sri Lanka.

Good morning, Satinder.

SATINDER BINDRA, CNN CORRESPONDENT: Good morning, Kelly.

I'm in a small village called Gintota. This is on the southern coast of Sri Lanka, and this was one of the worst affected areas.

Now here in this village, Marines are putting their spades in the ground. They've got also a lot of heavy machinery and equipment. They've got bulldozers here, and we're just going to show you a shot of what exactly is happening, if you can. This heavy equipment moved in about a few hours ago, and there were about 15 damaged homes. There was tons of debris and rubble here. There was an awful smell in this place. But now, after the Marines have moved in, this place is looking very decent. A lot of the rubble has been pared (ph) out. And over the next few days, Kelly, the U.S. Marines will deploy a large ship; it's an amphibious ship. They'll be using landing craft to get more gear in here as well.

Clearly, the Sri Lankans are very happy. They believe that these Marines are helping them. But there are also concerns in this region. India is the regional here, and there are some concerns there from the Indian side that if the Marines stay for too long, then the geopolitical balance here could be disrupted.

I did put this concern to the general commanding the Marines here, and he said that this was purely a humanitarian mission, and these Marines - which now number about 500 - would leave as soon as the Sri Lankan authorities asked them to do so - Kelly.

WALLACE: All right. Satinder, we need to leave it there. CNN's Satinder Bindra reporting from Sri Lanka.

It has been two weeks since the tsunami disaster, and people in the hardest-hit area are hoping for a new life as the devastation piles up around them. We will go live to Indonesia.

Also, roads turn to rivers in California. The stormy weather keeps rescuers busy. We will show you some dramatic moments.

And later, help for the young from the young. Kids around the world come to the aid of some of the youngest victims of the tsunami disaster.

First, here's a look at what else is making news this Monday morning, January 10.

(COMMERCIAL BREAK)

WALLACE: Now, our market watch. Futures are in positive territory right now. The Dow is up 11 points; the Nasdaq up two and a half; and the S&P is up a little more than two points.

The international markets are going in the opposite direction. Tokyo's Nikkei is down 59 points; the London FTSE is down 6, and the Paris CAC is down just over two points.

Your news, money, weather and sports. It is now just about 5:15. Here's what's all-new this morning:

At least seven Iraqi policemen were killed during a suicide bomb attack in a Baghdad-area police station. Witnesses say 10 others were injured when a fake police car exploded.

Opening statements are scheduled for today in the court martial of Army Specialist Charles Graner. Graner is accused of being the ringleader behind the abuses at Iraq's Abu Ghraib prison. The trial is expected to last a week.

In money, gas prices dropped three cents a gallon over the past three weeks. The average price for a gallon of regular unleaded is down to $1.79. But that's still about 24 cents higher than at this time last year.

In culture, "Meet the Fockers" was tops at the box office for the third straight week. Those Fockers brought in $28.5 million. The horror thriller "White Noise" was second with $24 million.

In sports, playoff football. The Minnesota Vikings scored a major upset over the Green Bay Packers, 31 to 17. The Packers lost a home playoff game for just the second time in 40 years.

And in the AFC, Peyton Manning threw four touchdown passes to lead his Indianapolis Colts over the Denver Broncos 49 to 24. The Colts will face the New England Patriots on Sunday.

Lots of football-action weather yesterday, Chad.

MYERS: Oh my, yes. I mean, talk about the tale of two different forecasts, two different cities. Indianapolis, in the dome, did really well. The quarterback as really promised. And then all of a sudden Green Bay - where did Favre go? Four interceptions? He had seven over the whole year.

(WEATHER REPORT)

WALLACE: And Chad, you have seen some of this video. You know about the stormy weather in store for Southern California after, as you've been talking about, a weekend of floods and mudslides. But as you're about to see, rescuers had their hands full.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Come on now. Come on now. Come on!

UNIDENTIFIED MALE: Hold on. All you guys...

(CROSSTALK)

(YELLING)

(END VIDEO CLIP) WALLACE: All right. Well, the first try didn't work. But rescuers eventually pulled this man and his three children from a flooded creek in suburban Los Angeles. The man lost his pants in the process, not to mention his car. He had been sitting on the roof of his BMW, which got stuck in the creek.

But this wasn't the only dramatic rescue. Our Miguel Marquez has more.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): A house in the Hollywood Hills crumpled after the water-sodden hillside behind it gave way.

UNIDENTIFIED FEMALE: I hear this woman from this house say, Oh my God, Oh My God, my (UNINTELLIGIBLE)

MARQUEZ: A 33-year-old man and his two kids were plucked from the debris. Fire officials say his 10-year-old son, buried up to his neck in mud, was lucky to survive.

UNIDENTIFIED MALE: (UNINTELLIGIBLE)

MARQUEZ: In the suburbs north of Los Angeles, a river raged in what was once a dry creek bed. After a wall collapsed, a trailer park flooded. Residents packed up children and Chihuahuas and headed for drier ground.

REBECCA HAYES, EVACUEE: My dad wants to stay, but we have no choice. We have to evacuate.

MARQUEZ: Across Southern California, mud slid off rain-soaked hills, rock and mudslides blocked roads, creating hazards almost everywhere.

UNIDENTIFIED MALE: This is Mother Nature at its worst.

MARQUEZ: Mother Nature relentless. In Malibu, a car with five passengers plunged on to the rocky shore. One person was killed.

Near Dodgers Stadium, a homeless man died after being buried in mud.

(END VIDEOTAPE)

WALLACE: And that was CNN's Miguel Marquez in Los Angeles.

Coming up next, a major change in Mid East politics. Can a new Palestinian leader bring peace in the Middle East? We will get reaction to the election of Mahmoud Abbas next.

And you've seen the pictures. Now the man behind the lens faces a court-martial. The story of Charles Graner and the Abu Ghraib prison-abuse scandal still ahead.

You are watching DAYBREAK for Monday, January 10.

(COMMERCIAL BREAK)

WALLACE: And welcome back.

And Chad, we have an update on the story you and Carol following last week.

MYERS: Yes.

WALLACE: A very interesting, unique option by the San Francisco Giants. Get this: the biggest bid -- $30,000 - for a dugout meeting with slugger Barry Bonds. Opening day first pitch topping $25,000 mark.

MYERS: I thought - I thought that would - someone - that would go for higher than that.

WALLACE: Yes, I...

MYERS: I thought some rich guy would really want to throw out the first pitch in the Giants game.

WALLACE: I know. Everybody wants to sort of have that feeling of being a pitcher for the Major League.

And then, I guess, $15,000 to take 10 swings against a real Major League pitcher.

MYERS: Yes, and you can go to the batting catch, you know, for like a buck.

WALLACE: But it is amazing.

MYERS: That is. That's great.

WALLACE: Over $100,000 in that auction...

MYERS: How awesome.

WALLACE: ...for the tsunami relief, and Barry Bonds apparently also making a private donation to UNICEF and AmeriCares through his own foundation.

But, look out: the Yankees getting too there, Chad.

MYERS: Yes.

WALLACE: They announced that they will donate $1 million from their season opener against Boston for tsunami relief. And it matches the $1 million donation announced by Major League baseball.

Are we having some competition here for who can provide the most?

MYERS: It sure seems like every team's going to have to ante up at this point in time. Yes, you bet. WALLACE: And also, though, you have singer Willie Nelson. He rounded up some friends and put on a show last night. Ticket sales bringing in $75,000 for tsunami relief. Nelson says he'll also sell a DVD of the live show. All, again, for the tsunami disaster victims.

MYERS: I saw Willie Nelson back in (UNINTELLIGIBLE) in 1982 or 83 in Farm Aid 2. Or maybe it Farm Aid 3 back in Lincoln, Nebraska. How crazy.

WALLACE: Was it a good show?

MYERS: It was great. He always does a great show.

WALLACE: All right, Chad. We'll be checking back with you in a little bit.

MYERS: Yes.

WALLACE: The awards season officially under way, now that the People's Choice Awards have been handed out.

One of the surprising winners, director Michael Moore. He was very surprised himself. His film, "Fahrenheit 9/11" named Favorite Movie. Moore says he will take the honor as an invitation to make more "Fahrenheit 9/11"s.

(BEGIN VIDEO CLIP)

MICHAEL MOORE, DIRECTOR: I want to thank most of all the people out there who voted for this. I don't want you to give up. This country is still all of ours, not just right or left, Democrat or Republican. It's all of our country.

(END VIDEO CLIP)

WALLACE: Another controversial film, "The Passion of the Christ," winning for Best Drama. Mel Gibson says winning a People's Choice Award for the film is the ultimate reward for his work.

On a less serious subject, "Desperate Housewives," favorite of many, named Best New Television Drama. It beat out other highly rated shows like "Lost" and "CSI: New York."

But it was the big green ogre that really won big. "Shrek 2" got five awards, including Best Comedy Film and Favorite Sequel. And Shrek's sidekick, Donkey, won the award for Favorite Animated Movie Star.

That's the latest on the People's Choice Awards.

Well, here's what's all-new in the next half hour:

Army Specialist Charles Graner facing a court-martial for his actions in the Abu Ghraib prison-abuse scandal. We will preview today's opening statements in the next half hour. Plus, it is the battle of the blades: Schick versus Gillette. DAYBREAK contributor Ali Velshi will tell you which won gave him a closer shave.

(COMMERCIAL BREAK)

WALLACE: Good morning, and welcome to the second half hour of DAYBREAK. From the Time Warner Center in New York, I am Kelly Wallace in for Carol Costello.

"Now in the News":

The Palestinians are going to have a new leader. In under two hours, officials are expected to declare Mahmoud Abbas the winner of yesterday's presidential election. We will talk to a top Palestinian lawmaker in just a few minutes.

We are learning more this morning about alleged waste and mismanagement in a major U.N. program. Newly revealed U.N. audits into the Oil-For-Food Program for Iraq show a string of overpayments to contractors. The program ran for seven years.

A U.S. nuclear sub is docked at a naval base in Guam this morning, two days after a deadly accident. The sub hit the ocean floor in the Western Pacific. One sailor died. More than 20 others are hurt.

More rain, more snow - that's what's in store for California for tomorrow. Weekend storms caused flash floods and mudslides, and also dumped several feet of snow.

Time now to check with Chad Myers at the Weather Center.

Chad, any relief in sight?

MYERS: No. Another storm comes in today, Kelly.

The relief is right now, where, obviously, things have calmed down in the past about 12 hours. But another storm develops in another 12 hours, and runs all the way through tomorrow into Wednesday. They have just been getting hammered, one after (UNINTELLIGIBLE). Now after that, it's over. There's not another storm in the pipeline for quite some time.

(WEATHER REPORT)

WALLACE: Well, the official results aren't expected until later this morning, but it appears Mahmoud Abbas has easily defeated his six opponents to succeed the late Yasser Arafat as the new Palestinian Authority president.

Abbas declared victory several hours ago after exit polls showed he had 66 percent of the vote. His closest challenger drew only about 20 percent of the vote.

Abbas is dedicating his victory to Palestinian prisoners in Israeli jails and to his - quote - "brother," Yasser Arafat.

President Bush welcomed the Abbas victory, saying - quote - "Palestinians throughout the West Bank and Gaza took a key step toward building a democratic future by choosing a new president in elections that observers describe as largely free and fair. This is a historic day for the Palestinian people and for the people people of the Middle East."

Israeli officials are saying that if Abbas cracks down on terrorism they are prepared to immediately make, quote, "All the necessary adjustments to work with him."

Mahmoud Abbas has already called for peace talks with Israel and Israeli officials say they're ready for that and more.

(BEGIN VIDEO CLIP)

BIDEON MEIR, SPOKESMAN, ISRAEL FOR. MINISTRY: Yesterday, last night, Mahmoud Abbas was elected as the Palestinian leader and hopefully he will have the courage, the same courage that the late President Sadat showed, the same courage that the late King Hussein of Jordan showed. The courage not to just say, no more wars, but to stop terrorism and to start to negotiate with us in a sincere way, in order to establish a Palestinian state.

(END VIDEO CLIP)

WALLACE: And Palestinian legislator Hanan Ashwari joins us now from Ramallah in the West Bank.

Hanan Ashwari, thanks for being with us. First question, what does the size of Mahmoud Abbas' apparent win say about his ability to move forward for the Palestinian people?

HANAN ASHWARI, PALESTINIAN LEGISLATOR: Well, certainly the size of his win is going to indicate that he is going to have a clear mandate, that he is going to be empowered to implement his program, his political program, which has been clearly articulated. It's no secret.

Mahmoud Abbas is committed to a peaceful settlement of the conflict. He is committed also to nation building, to reform and democracy. These are all components of this program and now the Palestinian people have decided to empower him. To give him the mandate to carry out this program and the burden of proof now, the onus is on the Israeli side.

WALLACE: And also, we'll get to the Israeli side in a second. Though, first, in terms of Mahmoud Abbas' ability to reign in some of the Palestinian militant groups, including Hamas. Again, what does the size of his win do for his, sort of political capital, to sort of reign in those groups?

ASHWARI: Well, Kelly that -- I mean the Israeli diction, in itself, betrays a mentality of occupation. They seem to measure the legitimacy of the Palestinian leader, of any elected leader, in accordance with Israeli priorities and wishes. The Palestinian leader has to deliver to his own people first.

He has to deliver a system of governance, that has integrity, that is based on the rule of law. He has to adhere to the principles an inclusive, legalistic (ph) democracy. He has to build institutions. These are things that the Palestinian people want.

In terms of a crack down on the opposition, or whatever, you need several components. You need, first also to curb Israeli violence. You cannot tell the Palestinian under occupation that they have to react peacefully to whatever the Israeli occupation dishes out and then give Israel a free hand to carry out incursions, assassinations, armed missions, still continue with a siege and the intimidation of the Palestinians.

We need, on both sides, to see a cessation of violence, particularly by the occupation. Then you need to create a viable peace process that will give people hope. You have a credible process, with substance, and with the ability to change realities, and to curtail all the unilateral and militaristic measures that are being imposed by Israel.

WALLACE: Are you optimistic, or guardedly optimistic, that the Israelis' will take the necessary actions you believe need to be taken to ensure success for Mahmoud Abbas and the Palestinian people?

ASHWARI: Well, Kelly, I feel that the Palestinians are doing their best to deliver to their people, to the rest of the world, to show that we are committed to democracy, to a homegrown program of reform. President Bush talks about that in the relation to the whole region. He can take a very close look at Palestinian and see what we are delivering and how we are carrying out a homegrown reform program and a vibrant democracy.

As far as the Israeli's are concerned, seems to me our main problem is the occupation. This is the lack of freedom that we have. Not freedom of expression, we have lack of freedom of movement, we have lack of rights, all these imposed by the occupation. Now, whether the Israeli government will react, correspondingly -- will act in a way to show they are responding (ph) or not. This is the true test that they have to undergo.

Because all along they have avoided negotiations; they have adopted unilateral approach. They have maintain a policy and the mentality of the occupier rather than a peace partner. Now we need them to reach out to the Palestinians and to say that they, themselves, are committed to peace as well.

And they will negotiate without pre-conditions, without turning the road map into a sequential conditional approach. And by understanding that they have obligations as well. And of course, we need the Americans on board. This is an American enterprise, after all, they promised a two-state solution. They promised a peaceful democratic region. And we are willing to cooperate, we need them to cooperate with us.

WALLACE: All right. Palestinian lawmaker Hanan Ashwari, we have to leave it there. Certainly, an historic day for Palestinians. We thank you for being on CNN's DAYBREAK today.

ASHWARI: Certainly.

WALLACE: And this is only the second time the Palestinian people have ever voted in a presidential election. Coming up, in our next hour, we will talk with one of Europe's key election observers about what he saw and how he thinks things went in Ramallah.

More bodies are being found in the wake of the tsunami disaster, two weeks after they swept across the Pacific. Our John King is Banda Aceh, following the story. He joins us live with more.

And, John, how are relief efforts going on this day?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Well, Kelly, it is an interesting time, now, as we enter into the beginning of the third week since the tsunami. Recall in the days right after the September 11 attacks, back in the United States, people began to speak in the days and weeks after of what they called a new normalcy. An acknowledgement that you will never forget, but that for many people an effort to try to get back into their daily lives and daily routines.

Some evidence of that today, here in Banda Aceh, the schools opened for the first time since the tsunami disaster 15 days ago. That a government decision to get the children back into school; important, the government here says, for psychological reasons as much, if not more so than educational reasons.

Get the children back into school, give them something to do and something to focus on, even though many of those school buildings are still nowhere physically capable of supporting the students. That decision to bring the children back to school today, one of the early steps we see as Indonesia tries -- tries to get back on the path to recovery.

(BEGIN VIDEOTAPE)

KING (voice over): Sunday morning, the market bustling, Banda Aceh, two weeks later. There is nothing normal here anymore. But some streets are busy again.

Anna Martia (ph), comes for salted fish, some chilies, watercress. And with her groceries carries hope that from disaster will ultimately come better days.

ANNA MARTIA, TSUNAMI SURVIVOR (through translator): Let's see what happens after these foreigners come. With the aid coming in, maybe it will become a greater city. There is so much help coming in.

KING: Coming in by the plane load. Though, at the two week mark there are still significant problems delivering help to devastated coastal areas to the west of Band Aceh.

UNIDENTIFIED MALE: For the foreseeable future, there will be no road access to large portions of the coast. It will be by boat and helicopter.

KING: This line, near the town's center, at times runs two hours. At the end, cheerful Australian troops and the cherished commodity, drinking water.

This video, shown on Indonesian television, shows the devastation as the tsunami hits Banda Aceh. Fritzi (ph) was on a bridge and saw it coming.

KING (on camera): What did you do?

UNIDENTIFIED FEMALE: I run with my friends. I have eight friends and I ran. Running, just running, don't think about all the things. Don't think about -- just running.

KING (voice over): Two weeks later she still worries it could happen again.

UNIDENTIFIED FEMALE: I can't (UNINTELLIGIBLE)

KING (on camera): Why?

UNIDENTIFIED FEMALE: Trauma (ph), big (ph) trauma (ph).

KING (voice over): When it comes to the daunting clean up operation there is heavy equipment, and heavy equipment; these elephants off to their next job.

A playful scene, but a sanitation nightmare. The dirty irrigation canal used for bathing and laundry across from the roadside refugee camp.

Diamal (ph) wants a new house, but far from the water this time, in case the wave comes back.

UNIDENTIFIED FEMALE (through translator): Lots of people say there will be, but only Allah knows.

KING: She found her two children after three days, but says others were taken away from Banda Aceh by the government, and two weeks later, their parents know nothing.

UNIDENTIFIED FEMALE (through translator): There is no information. They should return the kids to their parents. The poor parents, they are tired of looking.

KING: Look on the roadside and this is an all-too familiar scene. Here, three women and a child found Sunday morning in an alley. Banda Aceh still counting its dead, two horrible weeks later.

(END VIDEOTAPE)

KING: And the relief efforts, of course, intensifying as well. More and more private aid groups and aid workers coming into Banda Aceh over the weekend. And you see evidence, at least the aid workers are saying, so far, of relatively good cooperation with the Indonesian government.

And interesting week ahead, Kelly, they are beginning to take the refugees out of the many makeshift camps set up around the city and transfer them to several new camps set up in conjunction with the new United Nations command of the relief effort here. There has been some resistance. Those in the camps say they are comfortable where they are, they are worried about moving, but United Nations officials saying these new camps will be more secure, have better sanitation and better services for the refugees -- Kelly.

WALLACE: All right, John, we have to leave it there. Thanks so much.

John King reporting from Banda Aceh, today, for CNN DAYBREAK.

Now, to the fight for Iraq. Baghdad's deputy police chief and his son, who was also a police officer, were gunned down this morning. The assassinations took place as the men left their home in Baghdad.

South of the city, four Iraqis were killed in a car bombing at a checkpoint. Two of the victims were police officers, and two were civilians. The attacker also died.

And another U.S. Marine has been killed. The military says the Marine died while conducting security and stability operations in the volatile Al Anbar Province.

To the "War Room" now, there is still no exit plan for U.S. troops in Iraq. But with the elections just three weeks away, disengagement discussions are intensifying across Washington. CNN's Senior International Editor David Clinch joins us live from Atlanta with more on this.

David, good to see you.

DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: Kelly, good morning. The D word, "disengagement". Don't say it too loud though. People are talking about it in Washington, they're planning behind the scenes. But it is something that is really at the conceptual stage right now.

When you talk about disengagement for U.S. troops the first thing that comes up, of course, is what are these elections, that are only 20 days away, going to mean, not just for the Iraqis but for the U.S. , for the idea, the hope of getting at least some of those 150,000 American troops out of Iraq. Not immediately of course, but over the mid-term and long-term.

And really that remains very much in question. There have been a lot of things in the air about the idea that these Iraqi elections would lead to the possibilities of Iraqis taking over their own security, beginning to take on a greater role and allowing, slowly but surely, some of those Americans troops to come home. But I think it is pretty clear from the U.S. troops and the U.S. officials that we're talking to in the field that it is not at all certain that these elections will lead to any radical change. So, this transformation that people have been hoping for, that the Iraqi forces will be capable of looking after themselves and that the U.S. will be able to take, at first, a backseat role and then eventually start moving troops out, very much open to question.

And the D word is "disengagement". Another word we are hearing a lot from U.S. officials, and we heard it from President Bush, in describing these elections as a very "hopeful experience" for the Iraqi people. I think from the people we're talking to in the region, the American people we're talking to in the region, at the highest level, "hope" is a word they are using a lot, to us, at the moment, as well.

WALLACE: Also, David, using the D word, "disengagement", is this more about politics, domestic politics, in the United States, in terms of how long U.S. troops could remain there. Especially if after January 30 the situation is not any better?

CLINCH: Well, the coincidence of the elections coming up very soon and all of those congressmen and women coming back from their own regions, people talking about, when are our boys coming home, and our girls coming home? That is definitely a political issue in Washington for this new Bush administration. And that will be an issue on the table for him after his inauguration.

WALLACE: All right, David Clinch, CNN senior international editor, thanks so much.

CLINCH: All right, Kelly.

WALLACE: Moving on, a soldier in the Iraqi prisoner abuse case gets his day in court. In four minutes we will tell you what is in store for the accused, that story ahead. But first here is a look at what else is making news this Monday morning.

(GRAPHIC WITH HEADLINES)

(COMMERCIAL BREAK)

WALLACE: Welcome back. Your news, money, weather and sports it is 5:45. Here is what is all new this morning.

Former Palestinian Prime Minister Mahmoud Abbas has declared victory in the presidential elections. Exit polls have given him a commanding lead. Abbas says he has a difficult mission ahead in trying to forge a Palestinian state.

In Baghdad, police are now trying to learn who killed the deputy police chief and his son, a lieutenant on the force. The assassinations occurred as the two were headed to work.

In money, Mickey Rooney's behind won't get an airing during the "Super Bowl". Confused? Don't be. Rooney did a commercial for a cold medicine. It is set in a sauna with Rooney dropping his towel and running out when someone coughs. It is sort of a, quote, "wardrobe malfunction". In culture, "red state, blue state, purple state", that is the top phrase of 2004. The linguistic Society of America says that political phrase, more than any other, dominated national debate over the year.

And in sports, the New York Mets have reached a tentative agreement with super star free-agent, outfield Carlos Beltran. The contract would be for $119 million, over seven years. Beltran would join Pedro Martinez as a major signing for the Mets.

Time for weather now, but Chad, the Mets are lining up some big, big names for 2005.

CHAD MYERS, CNN METEOROLOGIST: Yes, they had better get the checkbook out. Man!

WALLACE: I think so.

MYERS: One-nineteen for Beltran. Holy cow.

(WEATHER FORECAST)

WALLACE: Opening statements are set for this morning in the court martial of Army Specialist Charles Grainer. Grainer is accused of being the ring leader behind abuses at Iraq's Abu Ghraib prison. But it is still unknown if Grainer will take the stand in his own defense. CNN National Correspondent Susan Candiotti has more on the case from Fort Hood, Texas.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice over): The public might never have learned of the Abu Ghraib prison abuse had not guard Charles Grainer taken his digital camera to Iraq and kept pictures like this. A man on a box with wires attached to his private parts.

The man told investigators, "Mr. Grainer brought a box. And he made me stand on it with no clothing, except a blanket. I had a bag over my head."

Here at Fort Hood, Texas, facing court martial, Grainer says soldiers have not ostracized the Abu Ghraib guards.

SPEC. CHARLES GRAINER, U.S. ARMY: Initially, wherever we've gone we've been alienated until people get to know us and say, oh, my goodness. They're normal people. They're, you know, they're not monsters.

CANDIOTTI: At this barbershop, among soldiers back from Iraq, a mixed judgment.

UNIDENTIFIED MALE: I don't look at them as monsters. I look at them as fellow soldiers who were doing their job and got caught up doing the wrong thing. Taking unlawful orders and carrying them out.

UNIDENTIFIED MALE: I was very -- I was shocked.

UNIDENTIFIED MALE: Why?

UNIDENTIFIED MALE: That is not how we're supposed to conduct business. It was very unprofessional.

UNIDENTIFIED MALE: I think they just didn't have the training. It all comes back to the training.

UNIDENTIFIED MALE: Those people gave a bad name to a lot of people, a bad impression.

CANDIOTTI: Grainer is accused of threatening to punch one detainee, stacking naked Iraqis in a human pyramid, orchestrating this scene of sexual humiliation; taking this picture of his girlfriend, dragging a prisoner on a dog leash. His jury, all veterans of combat, in Iraq of Afghanistan.

UNIDENTIFIED MALE: Whatever happens is going to happen. I still feel it is going to be on the positive side.

(On camera): Yet, the photos from Grainer's own camera may turn out to be the most difficult evidence to try to deny. If convicted, Grainer could find himself behind bars, until the year 2022 -- Susan Candiotti, CNN, Fort Hood, Texas.

(END VIDEOTAPE)

WALLACE: Well, 2005, as you know, is a new year, but how about a new you? Coming up our Ali Velshi gets the red carpet treatment where Schick is chic and Gillette is gallant.

You are watching DAYBREAK for this Monday morning.

(COMMERCIAL BREAK)

WALLACE: And now some questions for you men out there. How important is grooming to you? And how close is your shave? DAYBREAK contributor Ali Velshi, himself, a well-groomed guy, shows us what some men do to maintain their appearance, beginning with the all- important blade.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN CONTRIBUTOR, (voice over): How many blades can dance on the head of a razor? It has been on my mind since Schick introduced the four-blade quatro in 2003. Gillette says there is no need for four blades. What you really need is its new battery operated M3 Power. It vibrates, which Gillette says makes hair stand on end, resulting in a closer shave.

Quatro versus M3 Power, don't be fooled by the turbo charged language. The appeal is much more basic.

DON MONTUORI, MARKETRESEARCH.COM: You see most of the razor ads, you see a guy shaving in the morning, and an attractive woman is coming up behind him and feeling his face and going, like this.

(on camera): That sounds like fun. Let's see if I can get a closer shave.

(Voice over): Last year, Boris and I compared Gillette's top selling Mach III Turbo, to Schick's Quatro. No discernible difference then. Now, we'll shave half of my face with the four-blade Schick, the other half with Gillette's new M3 P.

I enjoyed the M3 P's vibrations, but once again, no real difference in the shave that Boris or I could feel. Until someone comes out with the perfect blade, we men have to spend out money somewhere. And so from bottom of my face to the top of my head, at another so-called barbershop. I suppose I could do this at home, but doing it here makes it ...

(on camera): Smoother than a baby's bottom.

(Voice over): And while it is clearly manly to show up at an old-style barbershop, edgy modern, guy only spas, like this one, pronounced Mick-el, offer pampering pedicures.

(on camera): Getting a facial used to be the sort of thing that was reserved for women, or guys who were particularly fashionable. Now it is sort of the thing that more men are getting comfortable with.

(Voice over): Slightly less edgy, but equally sensory, is John Allan's Men Club in Manhattan, staffed mainly by attractive women. For 65 bucks you get a scalp massage, shoeshine, hair cut and shampoo, in the time it takes to each lunch.

JOHN ALLAN, OWNER, THE JOHN ALLAN CO., LLC: It is about taking 40 minutes out of your month, or out of every three weeks, and say, you know, what? I just deserve this.

VELSHI (voice over): Deserve it maybe, but why does a guy really need a manicure?

ALLAN: Ask any woman who has ever had a guy touch her and those hands are like, Oh! That's the answer. That's the reason.

VELSHI (on camera): Not that this needs any explanation, but if anyone asks me why I need a manicure -- so that my hands look good when I'm playing pool.

(END VIDEOTAPE)

VELSHI: It is a tough job, but someone's got to do it, Kelly.

WALLACE: I was just going to say, how tough was that job for you.

VELSHI: Yes, I know. That was a hard sell to everyone around here.

Chad, are you around?

MYERS: I'm right here, Ali.

VELSHI: This is really catching on. I'm telling you, this is -- all of these places were full of guys getting stuff done to them. I mean, this is common place. Women have been used to this for a long time. But I have to tell you, this didn't seem as out there as I thought it might be when I started doing this. You ever tried this? Any of this fancy stuff, Chad.

MYERS: Oh, of course, I get manicures all the time. My wife sends me out and says get those things off me, I can't stand to look at them anymore.

But I have a question about the shave. You didn't feel any difference with those two different razors?

VELSHI: No, I really -- I have to tell you, every time I try this, I never I can never tell that there is a difference in these things. It is a lot of money. I mean, they are getting men to drop a lot of money on these razors and they're succeeding, increasingly.

WALLACE: I'm excited to see, women have all this pressure of, you know, manicures, pedicures ...

VELSHI: Yes.

WALLACE: ...facials. It is nice to see you all...

VELSHI: Yes, spending more money.

WALLACE: Spending more money.

VELSHI: And as such, understanding why women enjoy doing it the way it is.

WALLACE: And several of our colleagues on the floor said where can they sign up as well?

VELSHI: Yes, I have to get going now, because I have to work on my next tough assignment.

WALLACE: All right, Ali. Thank you so much.

(LAUGHTER)

WALLACE: Here is what is all new in the next hour of DAYBREAK. Worried about paying for college? You aren't alone. Ali will be back, in fact, in the next hour to show us how to navigate those tricky financial aid forms.

And Jack Hannah of the Columbus Zoo will tell us how the tsunami affected animals native to Southeast Asia and what the future holds for them. DAYBREAK continues right after this quick break. Stay with us.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired January 10, 2005 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KELLY WALLACE, CNN ANCHOR: Straight ahead on DAYBREAK:
In storm-battered Southern California, a bridge, a rope, a father and their rain-swollen creek. We'll show you happened in just a few minutes.

Plus, new video from Banda Aceh on the day the ocean rose up, sweeping away lives, homes and hopes. Our John Kings joins us live at the half hour.

And insurgents bring more fear and more death to Iraq as the nation prepares to elect new leaders.

It is Monday, January 10, and this is DAYBREAK.

Good morning to you. From the Time Warner Center in New York, I am Kelly Wallace, in for Carol Costello.

"Now in the News":

Mahmoud Abbas prepares to take over the reins of the fractured Palestinian leadership. He declares victory in the presidential election and predicts a - quote - "difficult mission ahead." We'll take you live to the West Bank in less than a minute.

In Baghdad, 20 days until those post-Saddam elections and no let up in the violence. The latest victims: a top police official and his son. We will take you live to the ancient capital in three minutes.

In Texas, a key figure in the Abu Ghraib prison scandal heads to court this morning. The stakes are high for specialist Charles Graner Jr. Opening statements are just five hours away.

And in storm-battered Southern California, a relentless weather system brings mudslides, heartache and frustration to thousands. At least eight deaths are blamed on the storm.

Lots of weather news this morning. Time to say good morning to Chad Myers.

Hi, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Kelly. I didn't expect you there this morning.

WALLACE: I know. Surprise, surprise.

MYERS: (UNINTELLIGIBLE) it's you.

WALLACE: Exactly. Carol - we hope Carol's feeling a bit better.

MYERS: She's a little under the weather this morning...

WALLACE: Yes.

MYERS: ...but that's all right. We'll get - we'll get her back later on this week. Thanks for filling in, Kelly.

(WEATHER REPORT)

WALLACE: Back now to our top story, a historic election in the Arab world: near leader for the Palestinians, and new hopes for Mid East peace efforts.

Our Guy Raz is in the West Bank city of Ramallah with the latest.

And Guy, what is the latest word on when we will get the official results of Sunday's election?

GUY RAZ, CNN CORRESPONDENT: Well, Kelly we're not - we're not expecting to get official results for a few more hours. But it's clear based on exit polls that Mahmoud Abbas, or Abu Mazen, will inherit the presidency of the Palestinian National Authority.

Certainly a momentous day for Palestinians across the West Bank and Gaza. Mahmoud Abbas, of course, regarded as a moderate, someone who is supported by the international community and by Israel. And most importantly, perhaps, a man who could revive the Middle East peace process.

Now just a short time ago, Mr. Abbas received congratulations from former U.S. President Jimmy Carter. President Carter is here leading an American delegation to - that was here as part of a group monitoring yesterday's election.

Here's what he had to say.

(BEGIN VIDEO CLIP)

JIMMY CARTER, FMR. U.S. PRESIDENT: This opens up an opportunity, in my opinion, for renewed peace negotiations and with an ultimate judgment of both peace and security, as well as justice. Long overdue for the Palestinian people. This can be done, obviously, in harmony with the adjacent state of Israel. The Palestinians in the West Bank and Gaza living peacefully alongside Israel, both sovereign nations and hopefully, ultimately becoming friends living completely at peace.

(END VIDEO CLIP)

RAZ: Kelly, there are still considerable challenges ahead for Abu Mazen, or Mahmoud Abbas. He now has to consolidate his power base. He doesn't have the same kind of grassroots support that his predecessor, Yasser Arafat, had. And crucially, he doesn't have the backing of militant groups.

Now, if Mahmoud Abbas is to enter negotiations with Israel with confidence, he has to win the backing of these groups. Israel has set several conditions for renewed peace talks, including clamping down on those militant groups. Israel would like to see an end to attacks against Israelis.

For his part, Mr. Abbas is asking Israel to ease conditions on Palestinians to end incursions, and also to end targeted assassinations of wanted Palestinian militants - Kelly.

WALLACE: And Guy, what do Palestinians believe is the first, immediate challenge facing Mahmoud Abbas?

RAZ: Well, right away, Mahmoud Abbas has to essentially get the house in order.

Of course, there's - the Palestinian National Authority has been marred by charges of corruption for the past four years. Mr. Abbas has to strengthen democratic institutions and public institutions. And then, he has to begin negotiations with Israel.

Now, of course, a lot of that depends on Israel's willingness to take part in those negotiations. But we've already had some signs from the Israeli Prime Minister Ariel Sharon's office that he is willing to meet with Mr. Abbas, perhaps as early as this week - Kelly.

WALLACE: All right. Guy Raz, reporting from the West Bank city of Ramallah. Thanks so much.

And again, we are expecting official announcements sometime around 7:00 a.m. Eastern Time.

In "The Fight for Iraq," Baghdad's deputy police chief and his son, a lieutenant on the police force, have been gunned down. The two men were on their way to work. It is the latest attack on the city's leadership.

CNN's Chris Lawrence joins us live from Baghdad with more.

And Chris, what's been the reaction so far to this latest violence?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Kelly, the violence that we've seen this morning was anything but random. These were targeted attacks aimed at specific people and places.

The Iraqi police tell us that they deputy police chief of Baghdad and his son were leaving for work this morning. Just as they were leaving their house, a gunman opened up, firing on their car and killed them both.

Also this morning, another man drove his car into the man gate of a police station on the southern outskirts of Baghdad. That explosion killed seven Iraqis there, some of them Iraqi policemen, some of them possibly civilians. But all of this violence is really just a continuation from that's happened in the past few days, where the deputy police chief of Samarra was also gunned down leaving for work, and three other high- ranking Iraqi officers were assassinated just in the last three days.

But these targets aren't just people. Also earlier this morning, explosives were detonated at a girls high school here in Baghdad. And an insurgent was killed while trying to blow up a boys middle school. Now, no children were hurt in these attacks, but both of these schools were being prepped to be used as voting centers during the elections. And across this country, you can see a definite pattern of violence trying to discourage people ahead of the election.

(BEGIN VIDEO CLIP)

PFC JONATHAN LUCAS, U.S. ARMY: Lately, we've been seeing a lot more. The mujahideen (ph) lives on laws (ph). We've been seeing at other places around where we - where we operate, so it's starting to pick up probably. I don't know. We're certainly worrying about those elections coming up.

(END VIDEO CLIP)

LAWRENCE: A lot of people are worried about those elections. But over the weekend, a group of Sunni Muslim clerics did meet with a senior U.S. official in the U.S. embassy here in Iraq. And from that conversation, they made this offer to the Americans, saying basically that they - if the Americans lay out a timetable for U.S. troops to withdraw from Iraq, they would call of the Sunni Muslim boycott of the election. That would be important, because although the Sunni Muslims are a minority in this country, it is important to have them participate to make the election and the vote as legitimate as possible. But as of right now, the U.S. embassy has no plans to lay out any such timetable - Kelly.

WALLACE: Chris, thanks so much. Chris Lawrence reporting from Baghdad.

The death toll now from the Asian tsunami is topping 140,000, and is expected to go much higher. Indonesians - Indonesia's health ministry says 77,000 people remain missing. Early figure - figures topping 155,000 were scaled down after it was learned some bodies were counted twice in Sri Lanka.

U.N. Secretary General Kofi Annan has toured the damage in the Maldives. Officials there say 14 of the nation's 280 inhabited islands have been evacuated, and nine of those are now uninhabitable.

And in Sumatra's Aceh province and parts of India, a measles immunization campaign in an effort to prevent an outbreak.

Some of the U.S. Marines in the region have moved past the task of delivering aid, and are now on to phase two. In Sri Lanka, teams of Marines have begun clearing and cleaning smaller towns that were laid waste by the tsunami.

For more on the Marines' mission, we are joined by CNN's Satinder Bindra. HE is in Sri Lanka.

Good morning, Satinder.

SATINDER BINDRA, CNN CORRESPONDENT: Good morning, Kelly.

I'm in a small village called Gintota. This is on the southern coast of Sri Lanka, and this was one of the worst affected areas.

Now here in this village, Marines are putting their spades in the ground. They've got also a lot of heavy machinery and equipment. They've got bulldozers here, and we're just going to show you a shot of what exactly is happening, if you can. This heavy equipment moved in about a few hours ago, and there were about 15 damaged homes. There was tons of debris and rubble here. There was an awful smell in this place. But now, after the Marines have moved in, this place is looking very decent. A lot of the rubble has been pared (ph) out. And over the next few days, Kelly, the U.S. Marines will deploy a large ship; it's an amphibious ship. They'll be using landing craft to get more gear in here as well.

Clearly, the Sri Lankans are very happy. They believe that these Marines are helping them. But there are also concerns in this region. India is the regional here, and there are some concerns there from the Indian side that if the Marines stay for too long, then the geopolitical balance here could be disrupted.

I did put this concern to the general commanding the Marines here, and he said that this was purely a humanitarian mission, and these Marines - which now number about 500 - would leave as soon as the Sri Lankan authorities asked them to do so - Kelly.

WALLACE: All right. Satinder, we need to leave it there. CNN's Satinder Bindra reporting from Sri Lanka.

It has been two weeks since the tsunami disaster, and people in the hardest-hit area are hoping for a new life as the devastation piles up around them. We will go live to Indonesia.

Also, roads turn to rivers in California. The stormy weather keeps rescuers busy. We will show you some dramatic moments.

And later, help for the young from the young. Kids around the world come to the aid of some of the youngest victims of the tsunami disaster.

First, here's a look at what else is making news this Monday morning, January 10.

(COMMERCIAL BREAK)

WALLACE: Now, our market watch. Futures are in positive territory right now. The Dow is up 11 points; the Nasdaq up two and a half; and the S&P is up a little more than two points.

The international markets are going in the opposite direction. Tokyo's Nikkei is down 59 points; the London FTSE is down 6, and the Paris CAC is down just over two points.

Your news, money, weather and sports. It is now just about 5:15. Here's what's all-new this morning:

At least seven Iraqi policemen were killed during a suicide bomb attack in a Baghdad-area police station. Witnesses say 10 others were injured when a fake police car exploded.

Opening statements are scheduled for today in the court martial of Army Specialist Charles Graner. Graner is accused of being the ringleader behind the abuses at Iraq's Abu Ghraib prison. The trial is expected to last a week.

In money, gas prices dropped three cents a gallon over the past three weeks. The average price for a gallon of regular unleaded is down to $1.79. But that's still about 24 cents higher than at this time last year.

In culture, "Meet the Fockers" was tops at the box office for the third straight week. Those Fockers brought in $28.5 million. The horror thriller "White Noise" was second with $24 million.

In sports, playoff football. The Minnesota Vikings scored a major upset over the Green Bay Packers, 31 to 17. The Packers lost a home playoff game for just the second time in 40 years.

And in the AFC, Peyton Manning threw four touchdown passes to lead his Indianapolis Colts over the Denver Broncos 49 to 24. The Colts will face the New England Patriots on Sunday.

Lots of football-action weather yesterday, Chad.

MYERS: Oh my, yes. I mean, talk about the tale of two different forecasts, two different cities. Indianapolis, in the dome, did really well. The quarterback as really promised. And then all of a sudden Green Bay - where did Favre go? Four interceptions? He had seven over the whole year.

(WEATHER REPORT)

WALLACE: And Chad, you have seen some of this video. You know about the stormy weather in store for Southern California after, as you've been talking about, a weekend of floods and mudslides. But as you're about to see, rescuers had their hands full.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Come on now. Come on now. Come on!

UNIDENTIFIED MALE: Hold on. All you guys...

(CROSSTALK)

(YELLING)

(END VIDEO CLIP) WALLACE: All right. Well, the first try didn't work. But rescuers eventually pulled this man and his three children from a flooded creek in suburban Los Angeles. The man lost his pants in the process, not to mention his car. He had been sitting on the roof of his BMW, which got stuck in the creek.

But this wasn't the only dramatic rescue. Our Miguel Marquez has more.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): A house in the Hollywood Hills crumpled after the water-sodden hillside behind it gave way.

UNIDENTIFIED FEMALE: I hear this woman from this house say, Oh my God, Oh My God, my (UNINTELLIGIBLE)

MARQUEZ: A 33-year-old man and his two kids were plucked from the debris. Fire officials say his 10-year-old son, buried up to his neck in mud, was lucky to survive.

UNIDENTIFIED MALE: (UNINTELLIGIBLE)

MARQUEZ: In the suburbs north of Los Angeles, a river raged in what was once a dry creek bed. After a wall collapsed, a trailer park flooded. Residents packed up children and Chihuahuas and headed for drier ground.

REBECCA HAYES, EVACUEE: My dad wants to stay, but we have no choice. We have to evacuate.

MARQUEZ: Across Southern California, mud slid off rain-soaked hills, rock and mudslides blocked roads, creating hazards almost everywhere.

UNIDENTIFIED MALE: This is Mother Nature at its worst.

MARQUEZ: Mother Nature relentless. In Malibu, a car with five passengers plunged on to the rocky shore. One person was killed.

Near Dodgers Stadium, a homeless man died after being buried in mud.

(END VIDEOTAPE)

WALLACE: And that was CNN's Miguel Marquez in Los Angeles.

Coming up next, a major change in Mid East politics. Can a new Palestinian leader bring peace in the Middle East? We will get reaction to the election of Mahmoud Abbas next.

And you've seen the pictures. Now the man behind the lens faces a court-martial. The story of Charles Graner and the Abu Ghraib prison-abuse scandal still ahead.

You are watching DAYBREAK for Monday, January 10.

(COMMERCIAL BREAK)

WALLACE: And welcome back.

And Chad, we have an update on the story you and Carol following last week.

MYERS: Yes.

WALLACE: A very interesting, unique option by the San Francisco Giants. Get this: the biggest bid -- $30,000 - for a dugout meeting with slugger Barry Bonds. Opening day first pitch topping $25,000 mark.

MYERS: I thought - I thought that would - someone - that would go for higher than that.

WALLACE: Yes, I...

MYERS: I thought some rich guy would really want to throw out the first pitch in the Giants game.

WALLACE: I know. Everybody wants to sort of have that feeling of being a pitcher for the Major League.

And then, I guess, $15,000 to take 10 swings against a real Major League pitcher.

MYERS: Yes, and you can go to the batting catch, you know, for like a buck.

WALLACE: But it is amazing.

MYERS: That is. That's great.

WALLACE: Over $100,000 in that auction...

MYERS: How awesome.

WALLACE: ...for the tsunami relief, and Barry Bonds apparently also making a private donation to UNICEF and AmeriCares through his own foundation.

But, look out: the Yankees getting too there, Chad.

MYERS: Yes.

WALLACE: They announced that they will donate $1 million from their season opener against Boston for tsunami relief. And it matches the $1 million donation announced by Major League baseball.

Are we having some competition here for who can provide the most?

MYERS: It sure seems like every team's going to have to ante up at this point in time. Yes, you bet. WALLACE: And also, though, you have singer Willie Nelson. He rounded up some friends and put on a show last night. Ticket sales bringing in $75,000 for tsunami relief. Nelson says he'll also sell a DVD of the live show. All, again, for the tsunami disaster victims.

MYERS: I saw Willie Nelson back in (UNINTELLIGIBLE) in 1982 or 83 in Farm Aid 2. Or maybe it Farm Aid 3 back in Lincoln, Nebraska. How crazy.

WALLACE: Was it a good show?

MYERS: It was great. He always does a great show.

WALLACE: All right, Chad. We'll be checking back with you in a little bit.

MYERS: Yes.

WALLACE: The awards season officially under way, now that the People's Choice Awards have been handed out.

One of the surprising winners, director Michael Moore. He was very surprised himself. His film, "Fahrenheit 9/11" named Favorite Movie. Moore says he will take the honor as an invitation to make more "Fahrenheit 9/11"s.

(BEGIN VIDEO CLIP)

MICHAEL MOORE, DIRECTOR: I want to thank most of all the people out there who voted for this. I don't want you to give up. This country is still all of ours, not just right or left, Democrat or Republican. It's all of our country.

(END VIDEO CLIP)

WALLACE: Another controversial film, "The Passion of the Christ," winning for Best Drama. Mel Gibson says winning a People's Choice Award for the film is the ultimate reward for his work.

On a less serious subject, "Desperate Housewives," favorite of many, named Best New Television Drama. It beat out other highly rated shows like "Lost" and "CSI: New York."

But it was the big green ogre that really won big. "Shrek 2" got five awards, including Best Comedy Film and Favorite Sequel. And Shrek's sidekick, Donkey, won the award for Favorite Animated Movie Star.

That's the latest on the People's Choice Awards.

Well, here's what's all-new in the next half hour:

Army Specialist Charles Graner facing a court-martial for his actions in the Abu Ghraib prison-abuse scandal. We will preview today's opening statements in the next half hour. Plus, it is the battle of the blades: Schick versus Gillette. DAYBREAK contributor Ali Velshi will tell you which won gave him a closer shave.

(COMMERCIAL BREAK)

WALLACE: Good morning, and welcome to the second half hour of DAYBREAK. From the Time Warner Center in New York, I am Kelly Wallace in for Carol Costello.

"Now in the News":

The Palestinians are going to have a new leader. In under two hours, officials are expected to declare Mahmoud Abbas the winner of yesterday's presidential election. We will talk to a top Palestinian lawmaker in just a few minutes.

We are learning more this morning about alleged waste and mismanagement in a major U.N. program. Newly revealed U.N. audits into the Oil-For-Food Program for Iraq show a string of overpayments to contractors. The program ran for seven years.

A U.S. nuclear sub is docked at a naval base in Guam this morning, two days after a deadly accident. The sub hit the ocean floor in the Western Pacific. One sailor died. More than 20 others are hurt.

More rain, more snow - that's what's in store for California for tomorrow. Weekend storms caused flash floods and mudslides, and also dumped several feet of snow.

Time now to check with Chad Myers at the Weather Center.

Chad, any relief in sight?

MYERS: No. Another storm comes in today, Kelly.

The relief is right now, where, obviously, things have calmed down in the past about 12 hours. But another storm develops in another 12 hours, and runs all the way through tomorrow into Wednesday. They have just been getting hammered, one after (UNINTELLIGIBLE). Now after that, it's over. There's not another storm in the pipeline for quite some time.

(WEATHER REPORT)

WALLACE: Well, the official results aren't expected until later this morning, but it appears Mahmoud Abbas has easily defeated his six opponents to succeed the late Yasser Arafat as the new Palestinian Authority president.

Abbas declared victory several hours ago after exit polls showed he had 66 percent of the vote. His closest challenger drew only about 20 percent of the vote.

Abbas is dedicating his victory to Palestinian prisoners in Israeli jails and to his - quote - "brother," Yasser Arafat.

President Bush welcomed the Abbas victory, saying - quote - "Palestinians throughout the West Bank and Gaza took a key step toward building a democratic future by choosing a new president in elections that observers describe as largely free and fair. This is a historic day for the Palestinian people and for the people people of the Middle East."

Israeli officials are saying that if Abbas cracks down on terrorism they are prepared to immediately make, quote, "All the necessary adjustments to work with him."

Mahmoud Abbas has already called for peace talks with Israel and Israeli officials say they're ready for that and more.

(BEGIN VIDEO CLIP)

BIDEON MEIR, SPOKESMAN, ISRAEL FOR. MINISTRY: Yesterday, last night, Mahmoud Abbas was elected as the Palestinian leader and hopefully he will have the courage, the same courage that the late President Sadat showed, the same courage that the late King Hussein of Jordan showed. The courage not to just say, no more wars, but to stop terrorism and to start to negotiate with us in a sincere way, in order to establish a Palestinian state.

(END VIDEO CLIP)

WALLACE: And Palestinian legislator Hanan Ashwari joins us now from Ramallah in the West Bank.

Hanan Ashwari, thanks for being with us. First question, what does the size of Mahmoud Abbas' apparent win say about his ability to move forward for the Palestinian people?

HANAN ASHWARI, PALESTINIAN LEGISLATOR: Well, certainly the size of his win is going to indicate that he is going to have a clear mandate, that he is going to be empowered to implement his program, his political program, which has been clearly articulated. It's no secret.

Mahmoud Abbas is committed to a peaceful settlement of the conflict. He is committed also to nation building, to reform and democracy. These are all components of this program and now the Palestinian people have decided to empower him. To give him the mandate to carry out this program and the burden of proof now, the onus is on the Israeli side.

WALLACE: And also, we'll get to the Israeli side in a second. Though, first, in terms of Mahmoud Abbas' ability to reign in some of the Palestinian militant groups, including Hamas. Again, what does the size of his win do for his, sort of political capital, to sort of reign in those groups?

ASHWARI: Well, Kelly that -- I mean the Israeli diction, in itself, betrays a mentality of occupation. They seem to measure the legitimacy of the Palestinian leader, of any elected leader, in accordance with Israeli priorities and wishes. The Palestinian leader has to deliver to his own people first.

He has to deliver a system of governance, that has integrity, that is based on the rule of law. He has to adhere to the principles an inclusive, legalistic (ph) democracy. He has to build institutions. These are things that the Palestinian people want.

In terms of a crack down on the opposition, or whatever, you need several components. You need, first also to curb Israeli violence. You cannot tell the Palestinian under occupation that they have to react peacefully to whatever the Israeli occupation dishes out and then give Israel a free hand to carry out incursions, assassinations, armed missions, still continue with a siege and the intimidation of the Palestinians.

We need, on both sides, to see a cessation of violence, particularly by the occupation. Then you need to create a viable peace process that will give people hope. You have a credible process, with substance, and with the ability to change realities, and to curtail all the unilateral and militaristic measures that are being imposed by Israel.

WALLACE: Are you optimistic, or guardedly optimistic, that the Israelis' will take the necessary actions you believe need to be taken to ensure success for Mahmoud Abbas and the Palestinian people?

ASHWARI: Well, Kelly, I feel that the Palestinians are doing their best to deliver to their people, to the rest of the world, to show that we are committed to democracy, to a homegrown program of reform. President Bush talks about that in the relation to the whole region. He can take a very close look at Palestinian and see what we are delivering and how we are carrying out a homegrown reform program and a vibrant democracy.

As far as the Israeli's are concerned, seems to me our main problem is the occupation. This is the lack of freedom that we have. Not freedom of expression, we have lack of freedom of movement, we have lack of rights, all these imposed by the occupation. Now, whether the Israeli government will react, correspondingly -- will act in a way to show they are responding (ph) or not. This is the true test that they have to undergo.

Because all along they have avoided negotiations; they have adopted unilateral approach. They have maintain a policy and the mentality of the occupier rather than a peace partner. Now we need them to reach out to the Palestinians and to say that they, themselves, are committed to peace as well.

And they will negotiate without pre-conditions, without turning the road map into a sequential conditional approach. And by understanding that they have obligations as well. And of course, we need the Americans on board. This is an American enterprise, after all, they promised a two-state solution. They promised a peaceful democratic region. And we are willing to cooperate, we need them to cooperate with us.

WALLACE: All right. Palestinian lawmaker Hanan Ashwari, we have to leave it there. Certainly, an historic day for Palestinians. We thank you for being on CNN's DAYBREAK today.

ASHWARI: Certainly.

WALLACE: And this is only the second time the Palestinian people have ever voted in a presidential election. Coming up, in our next hour, we will talk with one of Europe's key election observers about what he saw and how he thinks things went in Ramallah.

More bodies are being found in the wake of the tsunami disaster, two weeks after they swept across the Pacific. Our John King is Banda Aceh, following the story. He joins us live with more.

And, John, how are relief efforts going on this day?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Well, Kelly, it is an interesting time, now, as we enter into the beginning of the third week since the tsunami. Recall in the days right after the September 11 attacks, back in the United States, people began to speak in the days and weeks after of what they called a new normalcy. An acknowledgement that you will never forget, but that for many people an effort to try to get back into their daily lives and daily routines.

Some evidence of that today, here in Banda Aceh, the schools opened for the first time since the tsunami disaster 15 days ago. That a government decision to get the children back into school; important, the government here says, for psychological reasons as much, if not more so than educational reasons.

Get the children back into school, give them something to do and something to focus on, even though many of those school buildings are still nowhere physically capable of supporting the students. That decision to bring the children back to school today, one of the early steps we see as Indonesia tries -- tries to get back on the path to recovery.

(BEGIN VIDEOTAPE)

KING (voice over): Sunday morning, the market bustling, Banda Aceh, two weeks later. There is nothing normal here anymore. But some streets are busy again.

Anna Martia (ph), comes for salted fish, some chilies, watercress. And with her groceries carries hope that from disaster will ultimately come better days.

ANNA MARTIA, TSUNAMI SURVIVOR (through translator): Let's see what happens after these foreigners come. With the aid coming in, maybe it will become a greater city. There is so much help coming in.

KING: Coming in by the plane load. Though, at the two week mark there are still significant problems delivering help to devastated coastal areas to the west of Band Aceh.

UNIDENTIFIED MALE: For the foreseeable future, there will be no road access to large portions of the coast. It will be by boat and helicopter.

KING: This line, near the town's center, at times runs two hours. At the end, cheerful Australian troops and the cherished commodity, drinking water.

This video, shown on Indonesian television, shows the devastation as the tsunami hits Banda Aceh. Fritzi (ph) was on a bridge and saw it coming.

KING (on camera): What did you do?

UNIDENTIFIED FEMALE: I run with my friends. I have eight friends and I ran. Running, just running, don't think about all the things. Don't think about -- just running.

KING (voice over): Two weeks later she still worries it could happen again.

UNIDENTIFIED FEMALE: I can't (UNINTELLIGIBLE)

KING (on camera): Why?

UNIDENTIFIED FEMALE: Trauma (ph), big (ph) trauma (ph).

KING (voice over): When it comes to the daunting clean up operation there is heavy equipment, and heavy equipment; these elephants off to their next job.

A playful scene, but a sanitation nightmare. The dirty irrigation canal used for bathing and laundry across from the roadside refugee camp.

Diamal (ph) wants a new house, but far from the water this time, in case the wave comes back.

UNIDENTIFIED FEMALE (through translator): Lots of people say there will be, but only Allah knows.

KING: She found her two children after three days, but says others were taken away from Banda Aceh by the government, and two weeks later, their parents know nothing.

UNIDENTIFIED FEMALE (through translator): There is no information. They should return the kids to their parents. The poor parents, they are tired of looking.

KING: Look on the roadside and this is an all-too familiar scene. Here, three women and a child found Sunday morning in an alley. Banda Aceh still counting its dead, two horrible weeks later.

(END VIDEOTAPE)

KING: And the relief efforts, of course, intensifying as well. More and more private aid groups and aid workers coming into Banda Aceh over the weekend. And you see evidence, at least the aid workers are saying, so far, of relatively good cooperation with the Indonesian government.

And interesting week ahead, Kelly, they are beginning to take the refugees out of the many makeshift camps set up around the city and transfer them to several new camps set up in conjunction with the new United Nations command of the relief effort here. There has been some resistance. Those in the camps say they are comfortable where they are, they are worried about moving, but United Nations officials saying these new camps will be more secure, have better sanitation and better services for the refugees -- Kelly.

WALLACE: All right, John, we have to leave it there. Thanks so much.

John King reporting from Banda Aceh, today, for CNN DAYBREAK.

Now, to the fight for Iraq. Baghdad's deputy police chief and his son, who was also a police officer, were gunned down this morning. The assassinations took place as the men left their home in Baghdad.

South of the city, four Iraqis were killed in a car bombing at a checkpoint. Two of the victims were police officers, and two were civilians. The attacker also died.

And another U.S. Marine has been killed. The military says the Marine died while conducting security and stability operations in the volatile Al Anbar Province.

To the "War Room" now, there is still no exit plan for U.S. troops in Iraq. But with the elections just three weeks away, disengagement discussions are intensifying across Washington. CNN's Senior International Editor David Clinch joins us live from Atlanta with more on this.

David, good to see you.

DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: Kelly, good morning. The D word, "disengagement". Don't say it too loud though. People are talking about it in Washington, they're planning behind the scenes. But it is something that is really at the conceptual stage right now.

When you talk about disengagement for U.S. troops the first thing that comes up, of course, is what are these elections, that are only 20 days away, going to mean, not just for the Iraqis but for the U.S. , for the idea, the hope of getting at least some of those 150,000 American troops out of Iraq. Not immediately of course, but over the mid-term and long-term.

And really that remains very much in question. There have been a lot of things in the air about the idea that these Iraqi elections would lead to the possibilities of Iraqis taking over their own security, beginning to take on a greater role and allowing, slowly but surely, some of those Americans troops to come home. But I think it is pretty clear from the U.S. troops and the U.S. officials that we're talking to in the field that it is not at all certain that these elections will lead to any radical change. So, this transformation that people have been hoping for, that the Iraqi forces will be capable of looking after themselves and that the U.S. will be able to take, at first, a backseat role and then eventually start moving troops out, very much open to question.

And the D word is "disengagement". Another word we are hearing a lot from U.S. officials, and we heard it from President Bush, in describing these elections as a very "hopeful experience" for the Iraqi people. I think from the people we're talking to in the region, the American people we're talking to in the region, at the highest level, "hope" is a word they are using a lot, to us, at the moment, as well.

WALLACE: Also, David, using the D word, "disengagement", is this more about politics, domestic politics, in the United States, in terms of how long U.S. troops could remain there. Especially if after January 30 the situation is not any better?

CLINCH: Well, the coincidence of the elections coming up very soon and all of those congressmen and women coming back from their own regions, people talking about, when are our boys coming home, and our girls coming home? That is definitely a political issue in Washington for this new Bush administration. And that will be an issue on the table for him after his inauguration.

WALLACE: All right, David Clinch, CNN senior international editor, thanks so much.

CLINCH: All right, Kelly.

WALLACE: Moving on, a soldier in the Iraqi prisoner abuse case gets his day in court. In four minutes we will tell you what is in store for the accused, that story ahead. But first here is a look at what else is making news this Monday morning.

(GRAPHIC WITH HEADLINES)

(COMMERCIAL BREAK)

WALLACE: Welcome back. Your news, money, weather and sports it is 5:45. Here is what is all new this morning.

Former Palestinian Prime Minister Mahmoud Abbas has declared victory in the presidential elections. Exit polls have given him a commanding lead. Abbas says he has a difficult mission ahead in trying to forge a Palestinian state.

In Baghdad, police are now trying to learn who killed the deputy police chief and his son, a lieutenant on the force. The assassinations occurred as the two were headed to work.

In money, Mickey Rooney's behind won't get an airing during the "Super Bowl". Confused? Don't be. Rooney did a commercial for a cold medicine. It is set in a sauna with Rooney dropping his towel and running out when someone coughs. It is sort of a, quote, "wardrobe malfunction". In culture, "red state, blue state, purple state", that is the top phrase of 2004. The linguistic Society of America says that political phrase, more than any other, dominated national debate over the year.

And in sports, the New York Mets have reached a tentative agreement with super star free-agent, outfield Carlos Beltran. The contract would be for $119 million, over seven years. Beltran would join Pedro Martinez as a major signing for the Mets.

Time for weather now, but Chad, the Mets are lining up some big, big names for 2005.

CHAD MYERS, CNN METEOROLOGIST: Yes, they had better get the checkbook out. Man!

WALLACE: I think so.

MYERS: One-nineteen for Beltran. Holy cow.

(WEATHER FORECAST)

WALLACE: Opening statements are set for this morning in the court martial of Army Specialist Charles Grainer. Grainer is accused of being the ring leader behind abuses at Iraq's Abu Ghraib prison. But it is still unknown if Grainer will take the stand in his own defense. CNN National Correspondent Susan Candiotti has more on the case from Fort Hood, Texas.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice over): The public might never have learned of the Abu Ghraib prison abuse had not guard Charles Grainer taken his digital camera to Iraq and kept pictures like this. A man on a box with wires attached to his private parts.

The man told investigators, "Mr. Grainer brought a box. And he made me stand on it with no clothing, except a blanket. I had a bag over my head."

Here at Fort Hood, Texas, facing court martial, Grainer says soldiers have not ostracized the Abu Ghraib guards.

SPEC. CHARLES GRAINER, U.S. ARMY: Initially, wherever we've gone we've been alienated until people get to know us and say, oh, my goodness. They're normal people. They're, you know, they're not monsters.

CANDIOTTI: At this barbershop, among soldiers back from Iraq, a mixed judgment.

UNIDENTIFIED MALE: I don't look at them as monsters. I look at them as fellow soldiers who were doing their job and got caught up doing the wrong thing. Taking unlawful orders and carrying them out.

UNIDENTIFIED MALE: I was very -- I was shocked.

UNIDENTIFIED MALE: Why?

UNIDENTIFIED MALE: That is not how we're supposed to conduct business. It was very unprofessional.

UNIDENTIFIED MALE: I think they just didn't have the training. It all comes back to the training.

UNIDENTIFIED MALE: Those people gave a bad name to a lot of people, a bad impression.

CANDIOTTI: Grainer is accused of threatening to punch one detainee, stacking naked Iraqis in a human pyramid, orchestrating this scene of sexual humiliation; taking this picture of his girlfriend, dragging a prisoner on a dog leash. His jury, all veterans of combat, in Iraq of Afghanistan.

UNIDENTIFIED MALE: Whatever happens is going to happen. I still feel it is going to be on the positive side.

(On camera): Yet, the photos from Grainer's own camera may turn out to be the most difficult evidence to try to deny. If convicted, Grainer could find himself behind bars, until the year 2022 -- Susan Candiotti, CNN, Fort Hood, Texas.

(END VIDEOTAPE)

WALLACE: Well, 2005, as you know, is a new year, but how about a new you? Coming up our Ali Velshi gets the red carpet treatment where Schick is chic and Gillette is gallant.

You are watching DAYBREAK for this Monday morning.

(COMMERCIAL BREAK)

WALLACE: And now some questions for you men out there. How important is grooming to you? And how close is your shave? DAYBREAK contributor Ali Velshi, himself, a well-groomed guy, shows us what some men do to maintain their appearance, beginning with the all- important blade.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN CONTRIBUTOR, (voice over): How many blades can dance on the head of a razor? It has been on my mind since Schick introduced the four-blade quatro in 2003. Gillette says there is no need for four blades. What you really need is its new battery operated M3 Power. It vibrates, which Gillette says makes hair stand on end, resulting in a closer shave.

Quatro versus M3 Power, don't be fooled by the turbo charged language. The appeal is much more basic.

DON MONTUORI, MARKETRESEARCH.COM: You see most of the razor ads, you see a guy shaving in the morning, and an attractive woman is coming up behind him and feeling his face and going, like this.

(on camera): That sounds like fun. Let's see if I can get a closer shave.

(Voice over): Last year, Boris and I compared Gillette's top selling Mach III Turbo, to Schick's Quatro. No discernible difference then. Now, we'll shave half of my face with the four-blade Schick, the other half with Gillette's new M3 P.

I enjoyed the M3 P's vibrations, but once again, no real difference in the shave that Boris or I could feel. Until someone comes out with the perfect blade, we men have to spend out money somewhere. And so from bottom of my face to the top of my head, at another so-called barbershop. I suppose I could do this at home, but doing it here makes it ...

(on camera): Smoother than a baby's bottom.

(Voice over): And while it is clearly manly to show up at an old-style barbershop, edgy modern, guy only spas, like this one, pronounced Mick-el, offer pampering pedicures.

(on camera): Getting a facial used to be the sort of thing that was reserved for women, or guys who were particularly fashionable. Now it is sort of the thing that more men are getting comfortable with.

(Voice over): Slightly less edgy, but equally sensory, is John Allan's Men Club in Manhattan, staffed mainly by attractive women. For 65 bucks you get a scalp massage, shoeshine, hair cut and shampoo, in the time it takes to each lunch.

JOHN ALLAN, OWNER, THE JOHN ALLAN CO., LLC: It is about taking 40 minutes out of your month, or out of every three weeks, and say, you know, what? I just deserve this.

VELSHI (voice over): Deserve it maybe, but why does a guy really need a manicure?

ALLAN: Ask any woman who has ever had a guy touch her and those hands are like, Oh! That's the answer. That's the reason.

VELSHI (on camera): Not that this needs any explanation, but if anyone asks me why I need a manicure -- so that my hands look good when I'm playing pool.

(END VIDEOTAPE)

VELSHI: It is a tough job, but someone's got to do it, Kelly.

WALLACE: I was just going to say, how tough was that job for you.

VELSHI: Yes, I know. That was a hard sell to everyone around here.

Chad, are you around?

MYERS: I'm right here, Ali.

VELSHI: This is really catching on. I'm telling you, this is -- all of these places were full of guys getting stuff done to them. I mean, this is common place. Women have been used to this for a long time. But I have to tell you, this didn't seem as out there as I thought it might be when I started doing this. You ever tried this? Any of this fancy stuff, Chad.

MYERS: Oh, of course, I get manicures all the time. My wife sends me out and says get those things off me, I can't stand to look at them anymore.

But I have a question about the shave. You didn't feel any difference with those two different razors?

VELSHI: No, I really -- I have to tell you, every time I try this, I never I can never tell that there is a difference in these things. It is a lot of money. I mean, they are getting men to drop a lot of money on these razors and they're succeeding, increasingly.

WALLACE: I'm excited to see, women have all this pressure of, you know, manicures, pedicures ...

VELSHI: Yes.

WALLACE: ...facials. It is nice to see you all...

VELSHI: Yes, spending more money.

WALLACE: Spending more money.

VELSHI: And as such, understanding why women enjoy doing it the way it is.

WALLACE: And several of our colleagues on the floor said where can they sign up as well?

VELSHI: Yes, I have to get going now, because I have to work on my next tough assignment.

WALLACE: All right, Ali. Thank you so much.

(LAUGHTER)

WALLACE: Here is what is all new in the next hour of DAYBREAK. Worried about paying for college? You aren't alone. Ali will be back, in fact, in the next hour to show us how to navigate those tricky financial aid forms.

And Jack Hannah of the Columbus Zoo will tell us how the tsunami affected animals native to Southeast Asia and what the future holds for them. DAYBREAK continues right after this quick break. Stay with us.

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