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CNN Live At Daybreak

Graner Court-Martial; Iraq Elections; California Mudslide; Free Credit Report

Aired January 13, 2005 - 06:29   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: Good morning to you. Welcome to DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

Ten people are confirmed dead and all of the missing are accounted for in La Conchita, California, after the mudslide there. Searchers pulled the bodies of a mother and three daughters from the rubble yesterday. Three more bodies have not yet been found.

A new indictment means a 36-year-old woman accused of killing a pregnant woman and taking the baby from the dying woman's womb could face the death penalty. Still, a federal prosecutor says a decision on that is months away.

British Finance Minister Gordon Brown says he'll try to raise $10 billion for the worldwide fight against AIDS. Brown wants public and private money for a global fund to expand AIDS programs in poor nations.

And the delivery of aid to victims of Asian tsunami hits a road bump. Indonesia's military says international aid workers must now be accompanied by soldiers because of the threat of rebel attacks.

(WEATHER REPORT)

COSTELLO: It had nothing to do with the interrogation process. That's what one defense witness said when asked about some of the abuses of Abu Ghraib prison. But Army Specialist Charles Graner is still expected to take the stand in his own defense, and that might happen today.

CNN national correspondent Susan Candiotti joins me now from Fort Hood, Texas, to talk more about this case.

Good morning -- Susan.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Good morning, Carol. Welcome back.

COSTELLO: Thank you very much. It is good to be back. You know, this has been such an interesting case, especially to look at Charles Graner, because he doesn't seem upset at all.

CANDIOTTI: Well, he certainly hasn't since the trial began at the first part of this week. But certainly as the week has gone on, he has appeared more serious, and he was very serious, his mood had changed, as his defense began yesterday, much more business-like, I must say.

COSTELLO: I know, because he's been laughing. And I know you asked him a question outside of the courtroom, and he even had a chuckle there. What kind of witnesses is the defense going to be put on?

CANDIOTTI: Well, they began their defense yesterday, and it was rough-going at some points. He did have an expert who wanted to defend Graner's actions that included putting a leash on a prisoners and stacking naked detainees in a pyramid. That expert during a pre- trial hearing called them creative techniques to control prisoners and insisted that no one got hurt.

But the judge in this case did not allow the jury to hear those comments, ruling that the techniques could not be found in any training manual.

However, a military intelligence interrogator did say that the MPs were asked to help soften up the detainees for questioning by keeping them nude. However, on cross-examination, he also said that he never asked any MP to punch or kick or stack detainees into a naked pyramid.

COSTELLO: OK. So, it makes you wonder. Charles Graner is going to take the stand. What's he going to say?

CANDIOTTI: Well, that's what we will all wait to hear, of course. The first day that the court-martial began, his defense attorney told the jury that they would be hearing from Specialist Graner, and this is day two of his defense. He could take the stand this day or possibly tomorrow.

COSTELLO: Well, you know, because all along he says, like, he was taking orders from somebody. He never specifically named anyone. Maybe he will in his testimony. Who knows?

CANDIOTTI: Well, certainly that has been his contention all along that they were under orders to help soften up detainees for questioning by military intelligence interrogators. And so, one suspects that's what he will say.

COSTELLO: Susan Candiotti reporting live from Fort Hood this morning. Thank you.

The wars in Iraq and Afghanistan are taking an obvious toll on the Army National Guard. So, how are they combating the recruiting shortfalls?

CNN's Soledad O'Brien joins us now from the "AMERICAN MORNING" studios with a look at that story and more.

Good morning.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning. Glad to see that you're feeling a little bit better.

A potential crisis, you're absolutely right, for the military, a recruitment struggle right now. The Army National Guard is 30 percent below recruiting goals now. That is the first shortfall since 9/11. It's important, of course, because the Guard and the Army Reserve make up almost half of all of the troops in Iraq.

Well, some insiders are now even raising talk about a draft. This morning, we talk with Lieutenant General Steven Blum (ph). He is the chief of the National Guard Bureau. We're going to ask him those questions about what exactly they're going to do at this point -- Carol.

COSTELLO: Interesting. Soledad, we'll see you in about a half- hour. Thank you.

To Iraq now and the next chapter. Just two and a half weeks and counting until Election Day over there. And as the nation steps up its preparations, the insurgents, of course, are stepping up their attacks.

Let's head live to Baghdad now for an update and our Chris Lawrence.

Good morning -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Good morning, Carol.

Well, there doesn't seem to be any letup from the violence here in Iraq just 17 days before the election. And it doesn't seem to matter where you go in the country.

Right here in Baghdad just earlier this morning, six Iraqis were gunned down and a Turkish businessman was kidnapped. From what we hear from Iraqi police, they tell us a minibus pulled up to a Baghdad hotel to pick up these businessmen, and gunmen surrounded the minibus, opened fire, killed six Iraqis onboard and kidnapped that Turkish businessman.

And to the south near Najaf, there has been an assassination on a key aide to one of the election's biggest supporters. The Grand Ayatollah Ali al-Sistani is the highest-ranking Shiite Muslim cleric here in Iraq. And he has told Shiite Muslims it is their duty to vote in the election.

Well, last night, a key assistant to Ayatollah al-Sistani was assassinated along with that assistant's son and four bodyguards as they were leaving a mosque to go home.

Now, all of this violence is contributing to a state of unrest here in Iraq leading up to the election, and we're getting mixed signals from U.S. and coalition forces and the Iraqis here. The U.S. seems to be lowering expectations, saying for the first time that some Iraqis in certain areas will not be able to vote because of the violence there. Meanwhile, the Iraqi officials here are saying they expect eight million of the 14 million registered voters here in Iraq to show up at the polls and vote. They say an international monitoring delegation has been created, and they expect these monitors to be present at most of the 5,000 polling stations.

And they also say that even the election commissioners that have quit because of the attacks or being targeted for assassination, there have not been as many of them quitting as the media has reported. And they say even if they have been quitting, they'll simply hire someone else to replace them -- Carol.

COSTELLO: Chris Lawrence live in Baghdad this morning. Thank you.

It was a very solemn homecoming for six Louisiana National Guard soldiers. One by one, their flag-draped coffins were taken past their families at a Reserve base near New Orleans. Their families had asked that the arrivals be open to the media, and the National Guard complied.

The Pentagon's policy has been to keep the arrivals private. The soldiers were killed January 6 during a bomb attack in Iraq.

More now on our top story, the effort to dig out from that mudslide. Could there still be people alive in the rubble? Hear why some experts say yes.

And fixing your financial records. How do you correct the creditors?

Here's a look at what else, though, is making news this Thursday morning.

(COMMERCIAL BREAK)

COSTELLO: The tiny Pacific Coast town of La Conchita is reeling after the side of a cliff engulfed several homes. California Governor Arnold Schwarzenegger has declared a state of emergency for Ventura County. The community of 260 is mourning lost loved ones. But others feared missing are still unaccounted for.

Sean Callebs is on the scene for us in La Conchita.

Good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning to you, Carol.

Behind me you can see a lot floodlights still thrown on the area of the bottom of the hill. Crews are simply working around the clock. We're still a few hours away from daylight here where we are now.

The crews who have been out there continue to keep hope, and they believe that this remains a search and rescue mission. And they say they could be looking for as many as three people buried beneath all of that mud. (BEGIN VIDEOTAPE)

CALLEBS (voice over): Three days after a river of mud cascaded down on the coastal town of La Conchita, rescue workers still are hopeful some missing people will be found alive.

CHIEF BOB ROPER, VENTURA COUNTY FIRE DEPARTMENT: We've talked to our medical doctors, and they believe that there still is a chance if all of the conditions are right for some of these to have survived this.

CALLEBS: Emergency crews are finding air pockets under the pile with the help of canine friends like Duke.

UNIDENTIFIED MALE: We're limited on how far we can see and how far we can hear. He can use a sense of smell. Someone buried 10 feet under debris who is unconscious we may not see or hear. However, if we bring dogs like Duke in, using their sense of smell, they pick up that live human scent, and they bark.

CALLEBS: There is a lot of debris to sift through. The sheriff's office estimates rescue teams still need to remove at least 80 percent of the soil that eroded all at once off the cliffs above the town.

Since the more delicate aspects of the search need to be conducted by hand, some of the going is slow. But workers feel they are making progress.

UNIDENTIFIED MALE: We are going to continue in a rescue mode until Thursday night, where we'll reassess the situation again.

(END VIDEOTAPE)

CALLEBS: Now, 16 homes were destroyed in Monday's mudslide. Many residents in this small coastal area say they are eager to return home. There are a lot of geologists monitoring the soil in and around the area. They say the mountain, Carol, remains unstable, and they are not convinced the danger has passed.

COSTELLO: I can see why. Sean Callebs reporting live from La Conchita, California, this morning. Thank you.

Your news, money, weather and sports. It is 6:43 Eastern. Here's what's all new this morning.

Less than two hours from now, about half of the 5,400 people evacuated a week ago will be allowed to return to their homes in Graniteville, South Carolina. Nine people were killed and 250 were injured when a freight train crashed and began leaking chlorine gas. Tests now show air quality has returned to normal in some neighborhoods.

In money news, the FDA says Pfizer's TV and print ads for the painkillers Celebrex and Bextra mislead consumers. The agency says the ads make unsubstantiated effectiveness claims and fail to disclose side effects. Pfizer says it will discuss appropriate next steps with the FDA.

In culture, the widow of reggae music king Bob Marley plans to exhume his remains in Jamaica. She wants to rebury them in Ethiopia, which she calls a spiritual resting place. Marley died back in 1981.

And in sports, baseball's players and owners have reached an agreement on a new steroid policy. The change is expected to include harsher penalties for positive tests. The details will be announced by Commissioner Bud Selig later today.

(WEATHER REPORT)

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

The obstacles are enormous for rescue crews in California. CNN's Bill Hemmer will be talking to one of the team leaders on the scene this morning. He joins us now from "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.

We'll talk about those obstacles and also the aftermath now in this mudslide, just listening to Sean Callebs' report out there this morning. All people believed missing are now accounted for, but authorities are not taking any chances. The search continues. They still think they may have pockets of air. And if people have found those pockets of air, they still might be alive.

Jonathan Jessman (ph) is with the Ventura County Fire Department, working with a water rescue team, later on the urban search and rescue team, he'll talk about the process, talk about the obstacles as well as the emotional toll on the rescue workers and the families as well. So, we'll have it for you at the top of the hour here on a story that continues yet again today.

Carol -- see you in about 13 minutes from now on "AMERICAN MORNING." And welcome back, by the way. I hope you're feeling OK.

COSTELLO: Thank you. I'm feeling much better.

HEMMER: Yes?

COSTELLO: Believe me.

HEMMER: A 100 percent?

COSTELLO: Maybe 85 percent.

HEMMER: OK.

COSTELLO: Yes.

HEMMER: We'll work on the other 15 as we go throughout the week. I'll see you a bit later.

COSTELLO: We will. Thank you, Bill.

HEMMER: All right, bye-bye.

COSTELLO: Want to buy a house or a car? At 5:00, that's in the a.m., we told you why you need to get your credit reports and how to fix them. And now, DAYBREAK contributor Ali Velshi has good news about how to get them for free.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: I scared you an hour ago. Now, you're awake, and you can actually listen to how to get them for free. The bottom line is you really do need to check your credit report for a couple of reasons.

One is that if there is an error on your credit report, errors take months to fix. If there's a real problem like fraud or identify theft, sometimes you sit on that for years. This is very hard to do. No disrespect to the credit reporting agencies, the three of them out there. But they are financed by your creditors. They're not going to trip over themselves to fix your credit.

Now, until now, other than with a few exceptions, you had to pay for your credit reports. Three different credit agencies, let's say roughly 10 bucks apiece. Starting in this past December, a bunch of them are free.

Now, why you check your credit, I just want to run some of these things. Bad credit hurts the rates you get. You want to check your report because you want to make sure it's accurate. You want to prevent mistaken identity. There might be five other Carol Costellos out there, and four of them may not have your level of responsibility with money.

You want to detect fraud, and you want to avoid identity theft. And if you check your credit report, it's often your first indication. You do not want to find this out when you apply for a mortgage that wait a second, something's wrong.

Now, let's talk about what you do. You go to this Web site, AnnualCreditReport.com, and it's rolling out of the system across America. So, starting in December, Western states were able to get their credit reports for free. Starting March 1, it will be the Midwestern states. Starting June 1, the Southern states. And in September, it will be all of the Eastern states, Puerto Rico, the territories and D.C. Everybody will be entitled to one free credit report a year.

COSTELLO: OK. So, let's say you -- which I've ordered my credit report.

VELSHI: Right.

COSTELLO: I find a problem. I call the reporting agency.

VELSHI: Right.

COSTELLO: I cannot get a person on the phone to save my life. VELSHI: You've got to write to them. You have to put this in writing. You have to have evidence of what the problem was. They have to respond to you within 30 days in writing. And in the end, if it's not working out to your satisfaction, you have the right to append a 100-word summary to your credit report to say notwithstanding what this thing says, here is what the problem is.

One piece of advice: Your husband or wife spent the money and now you're divorced is not an acceptable excuse. You marry your credit. So, Valentine's Day, you've got nothing to talk about over dinner? Talk about each other's credit.

COSTELLO: And don't bother to call. Just write. Write the letter.

VELSHI: Reason 96 why Ali Velshi remains single, because I'm worried about these things.

COSTELLO: Oh, thank you, Ali.

VELSHI: Save me from myself, please.

COSTELLO: I'm trying. You won't let me.

VELSHI: Yes, I know.

COSTELLO: Still to come on DAYBREAK, he wants to wear the uniform of the queen's army someday. So, why is Britain's young Prince Harry wearing a Nazi swastika in this photo? We're following the latest royal ruckus in London next.

(COMMERCIAL BREAK)

COSTELLO: Your eyes are not deceiving you. That is indeed Britain's Prince Harry dressed like a Nazi soldier. It was a royal screw-up, he does admit it. But it may have some ramifications.

Live to London now and CNN's Diana Muriel.

Oh, Diana, I bet the tabloids are just -- I bet they're catching fire this morning.

DIANA MURIEL, CNN CORRESPONDENT: That's right, Carol, they are. As you can imagine the headline writers have been having a field day.

This is what the "Sun" newspaper, which broke the story, this is their front page showing that infamous photograph of Harry in his Nazi soldier's uniform. This is the inside page, where they describe Harry as Hitler youth.

Now, this, of course, refers to Harry's appearance at a party earlier this month, when he chose to dress as a member of the Africa Corps of the Nazi -- Second World War Nazi army.

This, of course, has caused outrage and scandal here in Great Britain. The office of his father, Prince Charles, has issued an apology on behalf of Prince Harry. In the statement, Harry says: "I am very sorry if I caused offense or embarrassment to anyone. It was a poor choice of costume, and I apologize."

Now, this apology has been accepted for the most part by members of the Jewish community here in Great Britain. But it has met with criticism elsewhere.

(BEGIN VIDEO CLIP)

DICKIE ARBITER, FORMER BUCKINGHAM PALACE PRESS OFFICER: He should have realized that wearing a Nazi uniform as a member of the royal family is just not a starter. It's all very well for celebrities and stars to prance around on stage or shows in London to portray the Nazis in a humorous way, but (UNINTELLIGIBLE) takes your pick, and it's your choice. But a member of the royal family and the royal family represents UKPLC, it's just not on.

(END VIDEO CLIP)

MURIEL: Now, the latest gaffe for Prince Harry, and it is just the latest in a string of embarrassments he's caused his father and indeed the royal family, comes just before the 60th anniversary of the liberation of the Polish Nazi death camp, Auschwitz. This is an event that will be marked by the presence of his uncle, the earl of Wessex, at a memorial ceremony on that day. And indeed the queen, his grandmother, will also be participating in an event to mark that Holocaust memorial day -- Carol.

COSTELLO: Diana Muriel reporting live from London this morning.

You are watching DAYBREAK for a Thursday.

(COMMERCIAL BREAK)

COSTELLO: Chad, I've been perusing the headlines this morning.

CHAD MYERS, CNN METEOROLOGIST: Yes. What do you have?

COSTELLO: Well, actually a couple of things that are interesting. Do you know the radio station, the FM radio station WHFS in Washington, D.C.?

MYERS: You do since you've lived there, but I don't, no.

COSTELLO: But it's a huge FM station, and it used to play alternative rock. Now, it's turning into an all Spanish-speaking radio station.

MYERS: Right.

COSTELLO: On FM, which is unusual, I think, because it's a huge radio station in a huge market like Washington, D.C. And it's going all Spanish.

MYERS: Sure. But, I mean, they realize where the demos are, so if that population is there and they can sell that population to their advertisers, why not?

COSTELLO: It's true, very true.

MYERS: Sure.

COSTELLO: There are a lot of stations like that in New York.

MYERS: Of course.

COSTELLO: But I think this is the first really big one in Washington, D.C.

MYERS: And Miami and places like Texas as well.

COSTELLO: Yes. And the other headline that I saw in "The Wall Street Journal," they're making washers and dryers now fashion statements. They're making them in all different colors. Yes, Kenmore is making colors in Sedona and Pacific blue.

MYERS: Nice.

COSTELLO: And the Agu Food Service (ph) is planning to make a cast iron stove in eggplant next year.

MYERS: Yes. Well, those are phenomenal stoves, of course, right. They come in like 14 different colors already.

COSTELLO: Well, now eggplant is the newest color on the market, Chad. I knew that you would appreciate those stories.

MYERS: It sure is. Carol, in Mississippi have a tornado warning for Choctaw and Montgomery Counties just issued there. The storm is spinning there in parts of Mississippi. Tornado watches are posted across a lot of the Southeast today and into tonight, so we'll keep that in mind. We'll keep you advised.

COSTELLO: I think you should have interrupted me at the beginning, but that's...

MYERS: It literally was just posted.

COSTELLO: OK. Thank you, Chad.

MYERS: You're welcome.

COSTELLO: "AMERICAN MORNING" starts right now.

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Aired January 13, 2005 - 06:29   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning to you. Welcome to DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

Ten people are confirmed dead and all of the missing are accounted for in La Conchita, California, after the mudslide there. Searchers pulled the bodies of a mother and three daughters from the rubble yesterday. Three more bodies have not yet been found.

A new indictment means a 36-year-old woman accused of killing a pregnant woman and taking the baby from the dying woman's womb could face the death penalty. Still, a federal prosecutor says a decision on that is months away.

British Finance Minister Gordon Brown says he'll try to raise $10 billion for the worldwide fight against AIDS. Brown wants public and private money for a global fund to expand AIDS programs in poor nations.

And the delivery of aid to victims of Asian tsunami hits a road bump. Indonesia's military says international aid workers must now be accompanied by soldiers because of the threat of rebel attacks.

(WEATHER REPORT)

COSTELLO: It had nothing to do with the interrogation process. That's what one defense witness said when asked about some of the abuses of Abu Ghraib prison. But Army Specialist Charles Graner is still expected to take the stand in his own defense, and that might happen today.

CNN national correspondent Susan Candiotti joins me now from Fort Hood, Texas, to talk more about this case.

Good morning -- Susan.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Good morning, Carol. Welcome back.

COSTELLO: Thank you very much. It is good to be back. You know, this has been such an interesting case, especially to look at Charles Graner, because he doesn't seem upset at all.

CANDIOTTI: Well, he certainly hasn't since the trial began at the first part of this week. But certainly as the week has gone on, he has appeared more serious, and he was very serious, his mood had changed, as his defense began yesterday, much more business-like, I must say.

COSTELLO: I know, because he's been laughing. And I know you asked him a question outside of the courtroom, and he even had a chuckle there. What kind of witnesses is the defense going to be put on?

CANDIOTTI: Well, they began their defense yesterday, and it was rough-going at some points. He did have an expert who wanted to defend Graner's actions that included putting a leash on a prisoners and stacking naked detainees in a pyramid. That expert during a pre- trial hearing called them creative techniques to control prisoners and insisted that no one got hurt.

But the judge in this case did not allow the jury to hear those comments, ruling that the techniques could not be found in any training manual.

However, a military intelligence interrogator did say that the MPs were asked to help soften up the detainees for questioning by keeping them nude. However, on cross-examination, he also said that he never asked any MP to punch or kick or stack detainees into a naked pyramid.

COSTELLO: OK. So, it makes you wonder. Charles Graner is going to take the stand. What's he going to say?

CANDIOTTI: Well, that's what we will all wait to hear, of course. The first day that the court-martial began, his defense attorney told the jury that they would be hearing from Specialist Graner, and this is day two of his defense. He could take the stand this day or possibly tomorrow.

COSTELLO: Well, you know, because all along he says, like, he was taking orders from somebody. He never specifically named anyone. Maybe he will in his testimony. Who knows?

CANDIOTTI: Well, certainly that has been his contention all along that they were under orders to help soften up detainees for questioning by military intelligence interrogators. And so, one suspects that's what he will say.

COSTELLO: Susan Candiotti reporting live from Fort Hood this morning. Thank you.

The wars in Iraq and Afghanistan are taking an obvious toll on the Army National Guard. So, how are they combating the recruiting shortfalls?

CNN's Soledad O'Brien joins us now from the "AMERICAN MORNING" studios with a look at that story and more.

Good morning.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning. Glad to see that you're feeling a little bit better.

A potential crisis, you're absolutely right, for the military, a recruitment struggle right now. The Army National Guard is 30 percent below recruiting goals now. That is the first shortfall since 9/11. It's important, of course, because the Guard and the Army Reserve make up almost half of all of the troops in Iraq.

Well, some insiders are now even raising talk about a draft. This morning, we talk with Lieutenant General Steven Blum (ph). He is the chief of the National Guard Bureau. We're going to ask him those questions about what exactly they're going to do at this point -- Carol.

COSTELLO: Interesting. Soledad, we'll see you in about a half- hour. Thank you.

To Iraq now and the next chapter. Just two and a half weeks and counting until Election Day over there. And as the nation steps up its preparations, the insurgents, of course, are stepping up their attacks.

Let's head live to Baghdad now for an update and our Chris Lawrence.

Good morning -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Good morning, Carol.

Well, there doesn't seem to be any letup from the violence here in Iraq just 17 days before the election. And it doesn't seem to matter where you go in the country.

Right here in Baghdad just earlier this morning, six Iraqis were gunned down and a Turkish businessman was kidnapped. From what we hear from Iraqi police, they tell us a minibus pulled up to a Baghdad hotel to pick up these businessmen, and gunmen surrounded the minibus, opened fire, killed six Iraqis onboard and kidnapped that Turkish businessman.

And to the south near Najaf, there has been an assassination on a key aide to one of the election's biggest supporters. The Grand Ayatollah Ali al-Sistani is the highest-ranking Shiite Muslim cleric here in Iraq. And he has told Shiite Muslims it is their duty to vote in the election.

Well, last night, a key assistant to Ayatollah al-Sistani was assassinated along with that assistant's son and four bodyguards as they were leaving a mosque to go home.

Now, all of this violence is contributing to a state of unrest here in Iraq leading up to the election, and we're getting mixed signals from U.S. and coalition forces and the Iraqis here. The U.S. seems to be lowering expectations, saying for the first time that some Iraqis in certain areas will not be able to vote because of the violence there. Meanwhile, the Iraqi officials here are saying they expect eight million of the 14 million registered voters here in Iraq to show up at the polls and vote. They say an international monitoring delegation has been created, and they expect these monitors to be present at most of the 5,000 polling stations.

And they also say that even the election commissioners that have quit because of the attacks or being targeted for assassination, there have not been as many of them quitting as the media has reported. And they say even if they have been quitting, they'll simply hire someone else to replace them -- Carol.

COSTELLO: Chris Lawrence live in Baghdad this morning. Thank you.

It was a very solemn homecoming for six Louisiana National Guard soldiers. One by one, their flag-draped coffins were taken past their families at a Reserve base near New Orleans. Their families had asked that the arrivals be open to the media, and the National Guard complied.

The Pentagon's policy has been to keep the arrivals private. The soldiers were killed January 6 during a bomb attack in Iraq.

More now on our top story, the effort to dig out from that mudslide. Could there still be people alive in the rubble? Hear why some experts say yes.

And fixing your financial records. How do you correct the creditors?

Here's a look at what else, though, is making news this Thursday morning.

(COMMERCIAL BREAK)

COSTELLO: The tiny Pacific Coast town of La Conchita is reeling after the side of a cliff engulfed several homes. California Governor Arnold Schwarzenegger has declared a state of emergency for Ventura County. The community of 260 is mourning lost loved ones. But others feared missing are still unaccounted for.

Sean Callebs is on the scene for us in La Conchita.

Good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning to you, Carol.

Behind me you can see a lot floodlights still thrown on the area of the bottom of the hill. Crews are simply working around the clock. We're still a few hours away from daylight here where we are now.

The crews who have been out there continue to keep hope, and they believe that this remains a search and rescue mission. And they say they could be looking for as many as three people buried beneath all of that mud. (BEGIN VIDEOTAPE)

CALLEBS (voice over): Three days after a river of mud cascaded down on the coastal town of La Conchita, rescue workers still are hopeful some missing people will be found alive.

CHIEF BOB ROPER, VENTURA COUNTY FIRE DEPARTMENT: We've talked to our medical doctors, and they believe that there still is a chance if all of the conditions are right for some of these to have survived this.

CALLEBS: Emergency crews are finding air pockets under the pile with the help of canine friends like Duke.

UNIDENTIFIED MALE: We're limited on how far we can see and how far we can hear. He can use a sense of smell. Someone buried 10 feet under debris who is unconscious we may not see or hear. However, if we bring dogs like Duke in, using their sense of smell, they pick up that live human scent, and they bark.

CALLEBS: There is a lot of debris to sift through. The sheriff's office estimates rescue teams still need to remove at least 80 percent of the soil that eroded all at once off the cliffs above the town.

Since the more delicate aspects of the search need to be conducted by hand, some of the going is slow. But workers feel they are making progress.

UNIDENTIFIED MALE: We are going to continue in a rescue mode until Thursday night, where we'll reassess the situation again.

(END VIDEOTAPE)

CALLEBS: Now, 16 homes were destroyed in Monday's mudslide. Many residents in this small coastal area say they are eager to return home. There are a lot of geologists monitoring the soil in and around the area. They say the mountain, Carol, remains unstable, and they are not convinced the danger has passed.

COSTELLO: I can see why. Sean Callebs reporting live from La Conchita, California, this morning. Thank you.

Your news, money, weather and sports. It is 6:43 Eastern. Here's what's all new this morning.

Less than two hours from now, about half of the 5,400 people evacuated a week ago will be allowed to return to their homes in Graniteville, South Carolina. Nine people were killed and 250 were injured when a freight train crashed and began leaking chlorine gas. Tests now show air quality has returned to normal in some neighborhoods.

In money news, the FDA says Pfizer's TV and print ads for the painkillers Celebrex and Bextra mislead consumers. The agency says the ads make unsubstantiated effectiveness claims and fail to disclose side effects. Pfizer says it will discuss appropriate next steps with the FDA.

In culture, the widow of reggae music king Bob Marley plans to exhume his remains in Jamaica. She wants to rebury them in Ethiopia, which she calls a spiritual resting place. Marley died back in 1981.

And in sports, baseball's players and owners have reached an agreement on a new steroid policy. The change is expected to include harsher penalties for positive tests. The details will be announced by Commissioner Bud Selig later today.

(WEATHER REPORT)

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

The obstacles are enormous for rescue crews in California. CNN's Bill Hemmer will be talking to one of the team leaders on the scene this morning. He joins us now from "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.

We'll talk about those obstacles and also the aftermath now in this mudslide, just listening to Sean Callebs' report out there this morning. All people believed missing are now accounted for, but authorities are not taking any chances. The search continues. They still think they may have pockets of air. And if people have found those pockets of air, they still might be alive.

Jonathan Jessman (ph) is with the Ventura County Fire Department, working with a water rescue team, later on the urban search and rescue team, he'll talk about the process, talk about the obstacles as well as the emotional toll on the rescue workers and the families as well. So, we'll have it for you at the top of the hour here on a story that continues yet again today.

Carol -- see you in about 13 minutes from now on "AMERICAN MORNING." And welcome back, by the way. I hope you're feeling OK.

COSTELLO: Thank you. I'm feeling much better.

HEMMER: Yes?

COSTELLO: Believe me.

HEMMER: A 100 percent?

COSTELLO: Maybe 85 percent.

HEMMER: OK.

COSTELLO: Yes.

HEMMER: We'll work on the other 15 as we go throughout the week. I'll see you a bit later.

COSTELLO: We will. Thank you, Bill.

HEMMER: All right, bye-bye.

COSTELLO: Want to buy a house or a car? At 5:00, that's in the a.m., we told you why you need to get your credit reports and how to fix them. And now, DAYBREAK contributor Ali Velshi has good news about how to get them for free.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: I scared you an hour ago. Now, you're awake, and you can actually listen to how to get them for free. The bottom line is you really do need to check your credit report for a couple of reasons.

One is that if there is an error on your credit report, errors take months to fix. If there's a real problem like fraud or identify theft, sometimes you sit on that for years. This is very hard to do. No disrespect to the credit reporting agencies, the three of them out there. But they are financed by your creditors. They're not going to trip over themselves to fix your credit.

Now, until now, other than with a few exceptions, you had to pay for your credit reports. Three different credit agencies, let's say roughly 10 bucks apiece. Starting in this past December, a bunch of them are free.

Now, why you check your credit, I just want to run some of these things. Bad credit hurts the rates you get. You want to check your report because you want to make sure it's accurate. You want to prevent mistaken identity. There might be five other Carol Costellos out there, and four of them may not have your level of responsibility with money.

You want to detect fraud, and you want to avoid identity theft. And if you check your credit report, it's often your first indication. You do not want to find this out when you apply for a mortgage that wait a second, something's wrong.

Now, let's talk about what you do. You go to this Web site, AnnualCreditReport.com, and it's rolling out of the system across America. So, starting in December, Western states were able to get their credit reports for free. Starting March 1, it will be the Midwestern states. Starting June 1, the Southern states. And in September, it will be all of the Eastern states, Puerto Rico, the territories and D.C. Everybody will be entitled to one free credit report a year.

COSTELLO: OK. So, let's say you -- which I've ordered my credit report.

VELSHI: Right.

COSTELLO: I find a problem. I call the reporting agency.

VELSHI: Right.

COSTELLO: I cannot get a person on the phone to save my life. VELSHI: You've got to write to them. You have to put this in writing. You have to have evidence of what the problem was. They have to respond to you within 30 days in writing. And in the end, if it's not working out to your satisfaction, you have the right to append a 100-word summary to your credit report to say notwithstanding what this thing says, here is what the problem is.

One piece of advice: Your husband or wife spent the money and now you're divorced is not an acceptable excuse. You marry your credit. So, Valentine's Day, you've got nothing to talk about over dinner? Talk about each other's credit.

COSTELLO: And don't bother to call. Just write. Write the letter.

VELSHI: Reason 96 why Ali Velshi remains single, because I'm worried about these things.

COSTELLO: Oh, thank you, Ali.

VELSHI: Save me from myself, please.

COSTELLO: I'm trying. You won't let me.

VELSHI: Yes, I know.

COSTELLO: Still to come on DAYBREAK, he wants to wear the uniform of the queen's army someday. So, why is Britain's young Prince Harry wearing a Nazi swastika in this photo? We're following the latest royal ruckus in London next.

(COMMERCIAL BREAK)

COSTELLO: Your eyes are not deceiving you. That is indeed Britain's Prince Harry dressed like a Nazi soldier. It was a royal screw-up, he does admit it. But it may have some ramifications.

Live to London now and CNN's Diana Muriel.

Oh, Diana, I bet the tabloids are just -- I bet they're catching fire this morning.

DIANA MURIEL, CNN CORRESPONDENT: That's right, Carol, they are. As you can imagine the headline writers have been having a field day.

This is what the "Sun" newspaper, which broke the story, this is their front page showing that infamous photograph of Harry in his Nazi soldier's uniform. This is the inside page, where they describe Harry as Hitler youth.

Now, this, of course, refers to Harry's appearance at a party earlier this month, when he chose to dress as a member of the Africa Corps of the Nazi -- Second World War Nazi army.

This, of course, has caused outrage and scandal here in Great Britain. The office of his father, Prince Charles, has issued an apology on behalf of Prince Harry. In the statement, Harry says: "I am very sorry if I caused offense or embarrassment to anyone. It was a poor choice of costume, and I apologize."

Now, this apology has been accepted for the most part by members of the Jewish community here in Great Britain. But it has met with criticism elsewhere.

(BEGIN VIDEO CLIP)

DICKIE ARBITER, FORMER BUCKINGHAM PALACE PRESS OFFICER: He should have realized that wearing a Nazi uniform as a member of the royal family is just not a starter. It's all very well for celebrities and stars to prance around on stage or shows in London to portray the Nazis in a humorous way, but (UNINTELLIGIBLE) takes your pick, and it's your choice. But a member of the royal family and the royal family represents UKPLC, it's just not on.

(END VIDEO CLIP)

MURIEL: Now, the latest gaffe for Prince Harry, and it is just the latest in a string of embarrassments he's caused his father and indeed the royal family, comes just before the 60th anniversary of the liberation of the Polish Nazi death camp, Auschwitz. This is an event that will be marked by the presence of his uncle, the earl of Wessex, at a memorial ceremony on that day. And indeed the queen, his grandmother, will also be participating in an event to mark that Holocaust memorial day -- Carol.

COSTELLO: Diana Muriel reporting live from London this morning.

You are watching DAYBREAK for a Thursday.

(COMMERCIAL BREAK)

COSTELLO: Chad, I've been perusing the headlines this morning.

CHAD MYERS, CNN METEOROLOGIST: Yes. What do you have?

COSTELLO: Well, actually a couple of things that are interesting. Do you know the radio station, the FM radio station WHFS in Washington, D.C.?

MYERS: You do since you've lived there, but I don't, no.

COSTELLO: But it's a huge FM station, and it used to play alternative rock. Now, it's turning into an all Spanish-speaking radio station.

MYERS: Right.

COSTELLO: On FM, which is unusual, I think, because it's a huge radio station in a huge market like Washington, D.C. And it's going all Spanish.

MYERS: Sure. But, I mean, they realize where the demos are, so if that population is there and they can sell that population to their advertisers, why not?

COSTELLO: It's true, very true.

MYERS: Sure.

COSTELLO: There are a lot of stations like that in New York.

MYERS: Of course.

COSTELLO: But I think this is the first really big one in Washington, D.C.

MYERS: And Miami and places like Texas as well.

COSTELLO: Yes. And the other headline that I saw in "The Wall Street Journal," they're making washers and dryers now fashion statements. They're making them in all different colors. Yes, Kenmore is making colors in Sedona and Pacific blue.

MYERS: Nice.

COSTELLO: And the Agu Food Service (ph) is planning to make a cast iron stove in eggplant next year.

MYERS: Yes. Well, those are phenomenal stoves, of course, right. They come in like 14 different colors already.

COSTELLO: Well, now eggplant is the newest color on the market, Chad. I knew that you would appreciate those stories.

MYERS: It sure is. Carol, in Mississippi have a tornado warning for Choctaw and Montgomery Counties just issued there. The storm is spinning there in parts of Mississippi. Tornado watches are posted across a lot of the Southeast today and into tonight, so we'll keep that in mind. We'll keep you advised.

COSTELLO: I think you should have interrupted me at the beginning, but that's...

MYERS: It literally was just posted.

COSTELLO: OK. Thank you, Chad.

MYERS: You're welcome.

COSTELLO: "AMERICAN MORNING" starts right now.

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