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CNN Live At Daybreak

Social Security; Inaugural Reaction; On the Border; Bush Twins; Orphan's Future

Aired January 21, 2005 - 05:30   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: High on President Bush's domestic agenda is a Social Security overhaul that would allow workers to put part of their payroll taxes into stocks and bonds. Wall Street is all for it, but the first hurdle is to convince skeptics that a fix is needed and needed right now.
Here's more from White House correspondent Dana Bash.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The crisis is here.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): It's the Bush Social Security mantra, the system must be fixed now.

Here's the reality. The latest projection from Social Security's trustees is the system will start to lose money when Baby Boomers begin retiring. That's in 2018, 13 years from now. And the system won't go broke until 2042, in 37 years.

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: They want a crisis everywhere so they can...

BASH: Democrats accuse the president of scare tactics to push his so-called ownership agenda, allowing younger workers to invest in private accounts. Nonsense says the president who calls it a test of his leadership, doing what's hard.

So far, besides allowing private investing for the first time in Social Security's 70 year history, Mr. Bush is tight-lipped on how he'll tackle reform.

What we do know: The president says he won't raise payroll taxes and won't cut benefits for those at or near retirement.

What we don't know about the president's proposal is a much longer list. For those Mr. Bush says are safe, those at or near retirement, is retirement 64 years old, 55 years old, somewhere in between? For those who don't have that promise, how much of their benefit could they lose?

Dana Bash, CNN, the White House.

(END VIDEOTAPE)

COSTELLO: But competing with Social Security for attention are plenty of foreign policy issues.

In his inaugural address, the president vowed to extend freedom and liberty throughout the world. And that has many people wondering just how aggressive he's willing to be at his far-reaching world goals.

We have two reports on that, first from CNN's Robin Oakley in London and then to CNN's Paula Hancocks in Jerusalem.

Let's start with you -- Robin.

ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR: Well, Carol, "The Guardian" newspaper in London today called it the most cumbertiv (ph) inauguration speech in 50 years. And I think that's a tone reflected in much of the British media. People talking about the confidence of President Bush's speech. Some surprised that the focus remains so much on international affairs, so much on the war against terrorism. People saying he's not in the slightest deterred by adventures already in Afghanistan and Iraq, though many are noting that there wasn't a mention at all in the speech of Iraq.

And certainly there is some degree of worry. The politicians in Britain have not had much to say as yet. But Robin Cook, the former British Foreign Secretary, did say that it wasn't just America and its Constitution which paid attention to freedom and democracy and liberty, that that was a European tradition, too. And he complained that George Bush should not be allowed to expropriate those terms in order to cover up what he called U.S. imperialism -- Carol.

COSTELLO: Robin Oakley, live in London, thank you.

Another challenge facing the second Bush term is the Middle East peace process, which may, for the first time in years, be moving forward.

CNN's Paula Hancocks is in Jerusalem with that part of the story.

Good morning.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Carol.

Well the reaction over here was fairly similar in the papers to what it was in London. One paper saying it was a very audacious strategy of leadership. And we have the title here: Bush Sets Out to Free the World.

Now even though Bush didn't specifically mention the Middle East, the analysis over here is that they do assume when he's talking about American security helping the security and freedom of the world he is specifying around the Middle East, in particular.

One interesting thing, though, in the papers over here, the president was actually overshadowed by the U.S. Vice President Dick Cheney and the fact that he said Israel could attack Iran if they do believe that they do have nuclear capability. You see the title here: Cheney Warns Israel May Attack Iran. Iran, in the past, it has said, has a policy of the destruction of Israel. And Cheney has said that Israel could go ahead and attack them and let the rest of the world pick up the diplomatic pieces. Interestingly though, in the analysis, the Israelis are saying that they believe that's a message to the Europeans and the international community to do a little bit more to try and stop Iranian nuclear capability.

Now, meanwhile in Gaza, as you said earlier, Carol, we do have the deployment of troops. That we spoke to, Mahmoud Abbas, the Palestinian leader's office, just a little while ago, and they say up to 3,000 troops have been deployed and are being deployed today along the northern Gaza border. Two phases they're saying this is going to happen in. The second phase over the next 48 hours will cover the rest of Gaza.

Carol, back to you.

COSTELLO: Paula Hancocks, live in Jerusalem, thank you.

The FBI has added 10 names to the list of those being sought for questioning about a possible terror threat against Boston. They are in addition to the four Chinese nationals identified earlier. Five of those added yesterday, one woman and four men, are Chinese. The nationalities of the other five, all of them men, are unknown. The FBI is giving no details on the nature of the threat and says its information is uncorroborated.

Please stay tuned to CNN all day and all night for the most reliable news about your security.

Patrols on both the U.S. and Canadian sides have been beefed up, but the northern border of the United States is still porous and still an attractive crossing point for potential terrorists.

CNN correspondent Keith Oppenheim braved the midwinter chill of North Dakota to bring us this report.

(BEGIN VIDEO CLIP)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): Larry Jerde walks in the cold, just feet from the U.S.-Canadian line. This is where he grew up, where North Dakota and Minnesota meet Manitoba, Canada.

LARRY JERDE, U.S. BORDER PATROL: See this little rise right in front of us, goes to that cottonwood tree there? That's Canada.

OPPENHEIM: And it is where, 27 years ago, he decided he wanted to be an agent for the U.S. Border Patrol.

JERDE: My father was a Border Patrol agent, so I sort of knew about the job, and it looked like sort of an adventure to me.

OPPENHEIM: The adventure now is high stakes. Larry Jerde is part of a group watching 900 miles of border, which before 9/11 was protected by only 30 agents. Now the Border Patrol says that number has gone way up, though, it won't say by how much, and it's clear this line of defense is still stretched thin.

(on camera): How tough a job is it?

JERDE: At times, it's very tough, the amount of areas we have to cover with the amount of people we have, in the conditions we have.

OPPENHEIM (voice-over): The conditions can be brutal. Winds howl across the plains.

JERDE: With the wind chill, it's probably more like 30, 35 below. But you don't stand around out in it, it's a pretty nice day.

OPPENHEIM: Jerde and his agents use snowmobiles like most police officers drive squad cars, scouring the frozen tundra for signs of anything suspicious.

JERDE: We're looking for any sign of human to come through.

OPPENHEIM: Yet even in this intimidating weather, illegal immigrants enter, and authorities can only guess at how many attempt to get through.

GLEN SCHROEDER, U.S. BORDER PATROL, GRAND FORKS: I don't want to see organized smuggling develop to the north of us with an infrastructure to the south of us. It allows for the passage of people, of terrorists, terrorist weapons in the United States, and then the ability to leave this area and go to other parts of the country.

OPPENHEIM: Last year, Jerde and the agents in his district arrested more than 1,300 illegal aliens. Cases often start with a tip.

JERDE: People talk. We have a lot of people out here that tell us what's going on in their own backyard.

OPPENHEIM: Many times, helicopter crews fly out for a first look.

UNIDENTIFIED MALE: We're able to get out there to see if there's anything crossing out there, vehicle signs, foot signs.

OPPENHEIM: And while Jerde gets backup from the sky, he gets the same from underground.

JERDE: It's like a suitcase,...

UNIDENTIFIED MALE: Yes.

JERDE: ... easily carried.

OPPENHEIM: A variety of sensors, buried in strategic locations, detect metals and motion. (on camera): To show you how technology can help, I'm going to demonstrate something that I'm doing with the permission of the U.S. Border Patrol and the Royal Canadian Mounted Police. I am just on the Canadian side of the border. A few feet that way, is the United States.

There are sensors all around here. The Border Patrol won't say how many or where they are. But you can be sure of this, when I walk from here, Canada, to over here, the United States, that incursion across the border has been picked up by those sensors, which alert federal agents at a command center more than 70 miles away.

(voice-over): Along with sensors, there are cameras. At this U.S. Customs office, Larry Jerde and other agents can monitor what happens overnight when smaller border crossings shut down. But surveillance camera, recently installed, stay on.

JERDE: Jason (ph), why don't you show him Ambrose.

JASON, BORDER PATROL OFFICER: This one here is Ambrose, North Dakota, which is approximately 240 miles away, on the western half of North Dakota.

OPPENHEIM: While the equipment is evolving...

UNIDENTIFIED BORDER PATROL OFFICER: And the next one's on that risk assessment.

OPPENHEIM: ... so are relationships across the border. Since 9/11, Jerde and other agents formalized their meetings with Canadian authorities.

JERDE: Where they get together and share information.

OPPENHEIM (on camera): This is every day?

JERDE: This is every day.

OPPENHEIM: They both work in the same place?

JERDE: In the same room, at the same time.

JOHN FERGUSON, ROYAL CANADIAN MOUNTED POLICE: Not only coming to the table with certain information we have, but we're able to check that information against information that our partners have.

OPPENHEIM (voice-over): Still, with all of the improvements, the challenge is daunting.

DOUGLAS FRIEZ, N. DAKOTA EMERGENCY MANAGEMENT: In terms of the bad guys coming across, we need to be correct 100 percent of the time.

OPPENHEIM: And for his part, Larry Jerde doesn't like overconfidence.

JERDE: What mix of technology and manpower is required to make our borders safe? We're in that process now.

OPPENHEIM: For those trusted with the first line of defense, like Larry Jerde, there has been a realization that an open crossing, however inhospitable, is an invitation to danger. That is how September 11 changed the landscape here.

JERDE: It was a heck of a way to open eyes, but I think it's -- from bad will come good. And I think we're on our way.

OPPENHEIM: Keith Oppenheim, CNN, Pemberton (ph), North Dakota.

(END VIDEOTAPE)

COSTELLO: What will they do now? Offers to adopt orphans from the tsunami disaster are pouring in. Our correspondent has their story coming up.

And along with their dad, Jenna and Barbara Bush get a second shot at a once-in-a-lifetime lifestyle. Anderson Cooper on the Bush twins in five minutes.

And our e-mail "Question of the Morning," what do you think should be the top priority of the Bush administration? DAYBREAK@CNN.com. DAYBREAK@CNN.com.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It's 5:42 Eastern. Here's what's all new this morning.

At least 14 people were killed when a car bomb exploded outside of a Shiite mosque near Baghdad. Another 42 people were injured in that attack.

In money news, America Online is hoping to generate more revenue with a new pay-per-call policy for advertisers. Most search engines make their money on a pay-per-click basis, but AOL is hoping to attract businesses that want more of a direct response from users.

In culture, is SpongeBob SquarePants gay? Some Christian conservative groups say the cartoon character is being used to promote the acceptance of homosexuality. They issued a gay warning over a video being sent to schools that feature SpongeBob, Barney and other make believe characters.

In sports, Indiana Pacers forward Ron Artest is returning to the team. Pacers management says Artest will take part in workout and practices starting next week, but he still can't play in games. Artest was suspended for the entire season after entering the stands for that, you know, brawl in Detroit.

To the Forecast Center now and, Chad, good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Thank you, Chad.

Those are the latest headlines for you this morning.

The Bush twins, Barbara and Jenna, are once again being thrust into the spotlight with their dad's second inauguration.

CNN's Anderson Cooper takes a look.

(BEGIN VIDEOTAPE)

BUSH: There's no better way to come down the stretch with two women I love, our twins, Barbara and Jenna.

(CHEERING AND APPLAUSE)

ANDERSON COOPER, CNN CORRESPONDENT (voice-over): We've seen them watching the election returns with their dad, gracing "Vogue," and making more than one not-so-flattering tabloid appearance. The public just loves to read the dirt on any president's kids. And let's face it, the Bush twins have given the public a lot to read about.

ANN GERHART, "WASHINGTON POST" REPORTER: The initial impression was that they were party hearty girls. And the press was always looking for that to happen again. They've had their turn in the tabloids.

COOPER: There's no denying Jenna and Barbara Bush have a distinctive style, even when they were given a more responsible role speaking at last year's Republican Convention. It was their giggly delivery that got the press' attention.

JENNA BUSH, DAUGHTER OF PRESIDENT GEORGE W. BUSH: You know all those times when you're growing up and your parents embarrassed you? Well, this is payback time on live TV.

COOPER: Needless to say, their critics were not kind.

KATRINA SZISH, "US WEEKLY" EDITOR: And I think the press loves to be hard on people who are in the public eye, especially young kids. But, then again, I think it's also important for people who are in this public eye, even if they are younger and a little bit less mature than their parents, to realize that everything they do is going to be scrutinized.

COOPER: OK, so maybe they are just a couple of young women behaving badly. But has the press taken the twin bashing a bit too far? Who hasn't had the occasional college night out we prefer to forget? And if you can't party when you're 23, then, well, when can you?

Although, let's be real, when your Secret Service detail nicknames you Twinkle and Turquoise, they're just begging you to expose your most precocious side.

GERHART: They have a pretty active social life and I think people think they're two young women who have graduated from college and are on their way to adulthood and out having a good time. I don't think anybody necessarily expects that they'll go into the family business.

COOPER: They may not join the family firm, but the twins were born to be in the spotlight just one minute apart in 1981. They were 6 when their grandfather was elected president, 12 when their dad became governor of Texas, 18 when he won the White House. This week, they're preparing for their father's final inauguration.

SZISH: Barbara and Jenna have enlisted a major team of American fashion designers.

COOPER: And planning for their own futures.

GERHART: They didn't spend a lot of time at the White House and now that they are graduates and they've gone through this campaign, they seem to be getting on with their lives. Jenna is going to teach here in Washington at a poor school, following in her mother's footsteps, who did the same thing when she graduated from college. Barbara has talked about trying to help AIDS victims in Africa.

COOPER: Their mom is doing what so many moms do, looking farther into the future, to the day when they might lose that inner wild child and maybe settle down.

LAURA BUSH, FIRST LADY: I'd love to be grandfolks. Don't worry, they're not about to get married. Neither one of them have somebody they're going to marry.

(END VIDEOTAPE)

COSTELLO: That report from CNN's Anderson Cooper.

The twins, in case you were wondering, wore designer Badgley Mischka gowns during last night's inaugural balls.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

COSTELLO: Now for the latest from southern Asia. American troops are preparing to pull out of Indonesia, with full withdrawal expected to be done within 60 days. Indonesia had said they wanted all foreign troops out by the end of March. U.S. troops are turning over their duties to civilian aid workers.

A reduction in military presence is also in line with the United Nations' plan for southern Asia. The U.N. says the tsunami relief effort is moving into phase two now, that means the emphasis will be placed on reconstruction instead of recovery.

One of the lasting images from the tsunami disaster is the thousands of children who are now orphans. But fears for their future safety have led Sri Lanka and Indonesia to ban adoptions for the time being.

CNN's Suhasini Haidar has more from southern India on the hopes of those children.

(BEGIN VIDEOTAPE)

SUHASINI HAIDAR, CNN CORRESPONDENT (voice-over): Trying to restore normalcy at a home for tsunami orphans. Children bore the brunt of the tsunami's rage, about a third of those that died here in south India were under 12. But it's these kids who survived, while their parents died, who need immediate care.

(on camera): For the moment, the government has set up special homes, like this one, to house orphans of the tsunami and has set aside about $11,000 per child to be given to them when they turn 18.

(voice-over): Just a week after coming here, 10-year-old Gunashaker (ph) says he never wants to move again.

My sister and I will live here until we grow up, he insists.

But offers to adopt are pouring in from couples as far off as the United States, Italy, even Kosovo. State officials say more than a thousand have applied for fewer than 200 registered orphans. Among the perspective parents, schoolteacher Raviti (ph) and her husband. They have been wanting to adopt for a while, but images of the tsunami prompted them to apply formally.

When I see stories of tsunami orphans on television, she says, I just want to take care of them and make them forget their loss.

Even so, aid agencies say it's probably better to try to sponsor the kids back in their own villages along India's tsunami hit coastline.

TIM SCHAFFTER, UNICEF: The fisher communities are very close knit. So we find just naturally, without any outside assistance, identifying children from extended families and taking care of them.

HAIDAR: At the orphanage, the children themselves have simple prayers.

I pray I can study and finish school, says Josinta (ph).

I pray I become a doctor or a policeman, says Gunashaka (ph).

I pray that God protects all children, says Vijay (ph), and that a tsunami never happens again.

Suhasini Haidar, CNN, Nago Putnam (ph), South India.

(END VIDEOTAPE)

COSTELLO: Here's a look at what's all new in the next half-hour of DAYBREAK.

Federal authorities widen the net for suspects wanted in a possible terror plot in the northeast.

And an Air Force pilot just back from Iraq gives us his first- hand impression of the inauguration.

Stick with us for the second hour of DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: President Bush is starting the first full day of his second term with a prayer, this morning's service at the National Cathedral. It's the last official event of his inauguration. A full day yesterday included his inaugural address, a parade and a sprint through 10 different balls in just under 90 minutes. The president's speech included far-reaching, but nonspecific goals of spreading democracy worldwide. He included repeated references to freedom and liberty but did not directly mention Iraq or the 9/11 terror attacks.

So we wanted to ask you this question this morning, what do you think should be the president's top priority in term two? It is time to read some e-mail. And we've gotten a lot of interesting responses.

Ali, Chad, they're both here to help me out this morning.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: Well it's good, Chad, to see that, and, Carol, to see that the responses are as broad as the suggestions in Washington about what the priorities should be.

We've got something from Rick (ph), who is in New York or is from New York, saying Bush's top priority is to get a pair of asbestos gloves to handle all of the hot irons he has in the fire, Iraq, Social Security, the economy, education, et cetera, et cetera.

MYERS: J.J. (ph) from Atlanta thinks Bush should stop talking about it and start doing something about the nation's porous borders.

Teri (ph) in Fayetteville, North Carolina says U.S. energy independence should be priority No. 1 in the next four years.

And, like you said, Ali, these responses were all over the board. Go ahead.

VELSHI: Yes. And I mean health care comes into this thing. There are all sorts of responses we've been getting.

What have you got?

COSTELLO: Yes. What have I got? Well, let me read some of them.

Harold (ph) from Anchorage, Alaska says exiting Iraq is the No. 1 priority right now.

That's the same from Jordan (ph). He says Bush's first priority, get our troops home now.

VELSHI: California, the health -- Kevin (ph) in California says, quite simply, I think health care is very important.

So a lot of different priorities, and I guess that's why we actually have to figure out what they're going to be for the next little while.

MYERS: Christian (ph) in Florida thinks Bush should stop trying to save the world that doesn't want to be saved.

COSTELLO: Interesting. Well I think one of the big things he's going to tackle right away is Social Security. And we're going to be talking a lot about that in the next hour of DAYBREAK. He's actually going to go out and campaign, grass roots style, to get people onboard with his plan.

VELSHI: It's a tough sell. It's a tough one.

MYERS: It is.

COSTELLO: It's going to be a tough sell.

VELSHI: Yes.

COSTELLO: The next hour of DAYBREAK starts right now.

Straight ahead, Holy Day blast in Baghdad. A car bomb kills worshipers celebrating one of Islam's most important holidays.

Plus, Bush's big push, the president gears up for his controversial plan to overhaul Social Security.

And getting ready for the big football game or games? No, not the players, the fans. We'll have tips on cheering techniques.

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 21, 2005 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: High on President Bush's domestic agenda is a Social Security overhaul that would allow workers to put part of their payroll taxes into stocks and bonds. Wall Street is all for it, but the first hurdle is to convince skeptics that a fix is needed and needed right now.
Here's more from White House correspondent Dana Bash.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The crisis is here.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): It's the Bush Social Security mantra, the system must be fixed now.

Here's the reality. The latest projection from Social Security's trustees is the system will start to lose money when Baby Boomers begin retiring. That's in 2018, 13 years from now. And the system won't go broke until 2042, in 37 years.

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: They want a crisis everywhere so they can...

BASH: Democrats accuse the president of scare tactics to push his so-called ownership agenda, allowing younger workers to invest in private accounts. Nonsense says the president who calls it a test of his leadership, doing what's hard.

So far, besides allowing private investing for the first time in Social Security's 70 year history, Mr. Bush is tight-lipped on how he'll tackle reform.

What we do know: The president says he won't raise payroll taxes and won't cut benefits for those at or near retirement.

What we don't know about the president's proposal is a much longer list. For those Mr. Bush says are safe, those at or near retirement, is retirement 64 years old, 55 years old, somewhere in between? For those who don't have that promise, how much of their benefit could they lose?

Dana Bash, CNN, the White House.

(END VIDEOTAPE)

COSTELLO: But competing with Social Security for attention are plenty of foreign policy issues.

In his inaugural address, the president vowed to extend freedom and liberty throughout the world. And that has many people wondering just how aggressive he's willing to be at his far-reaching world goals.

We have two reports on that, first from CNN's Robin Oakley in London and then to CNN's Paula Hancocks in Jerusalem.

Let's start with you -- Robin.

ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR: Well, Carol, "The Guardian" newspaper in London today called it the most cumbertiv (ph) inauguration speech in 50 years. And I think that's a tone reflected in much of the British media. People talking about the confidence of President Bush's speech. Some surprised that the focus remains so much on international affairs, so much on the war against terrorism. People saying he's not in the slightest deterred by adventures already in Afghanistan and Iraq, though many are noting that there wasn't a mention at all in the speech of Iraq.

And certainly there is some degree of worry. The politicians in Britain have not had much to say as yet. But Robin Cook, the former British Foreign Secretary, did say that it wasn't just America and its Constitution which paid attention to freedom and democracy and liberty, that that was a European tradition, too. And he complained that George Bush should not be allowed to expropriate those terms in order to cover up what he called U.S. imperialism -- Carol.

COSTELLO: Robin Oakley, live in London, thank you.

Another challenge facing the second Bush term is the Middle East peace process, which may, for the first time in years, be moving forward.

CNN's Paula Hancocks is in Jerusalem with that part of the story.

Good morning.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Carol.

Well the reaction over here was fairly similar in the papers to what it was in London. One paper saying it was a very audacious strategy of leadership. And we have the title here: Bush Sets Out to Free the World.

Now even though Bush didn't specifically mention the Middle East, the analysis over here is that they do assume when he's talking about American security helping the security and freedom of the world he is specifying around the Middle East, in particular.

One interesting thing, though, in the papers over here, the president was actually overshadowed by the U.S. Vice President Dick Cheney and the fact that he said Israel could attack Iran if they do believe that they do have nuclear capability. You see the title here: Cheney Warns Israel May Attack Iran. Iran, in the past, it has said, has a policy of the destruction of Israel. And Cheney has said that Israel could go ahead and attack them and let the rest of the world pick up the diplomatic pieces. Interestingly though, in the analysis, the Israelis are saying that they believe that's a message to the Europeans and the international community to do a little bit more to try and stop Iranian nuclear capability.

Now, meanwhile in Gaza, as you said earlier, Carol, we do have the deployment of troops. That we spoke to, Mahmoud Abbas, the Palestinian leader's office, just a little while ago, and they say up to 3,000 troops have been deployed and are being deployed today along the northern Gaza border. Two phases they're saying this is going to happen in. The second phase over the next 48 hours will cover the rest of Gaza.

Carol, back to you.

COSTELLO: Paula Hancocks, live in Jerusalem, thank you.

The FBI has added 10 names to the list of those being sought for questioning about a possible terror threat against Boston. They are in addition to the four Chinese nationals identified earlier. Five of those added yesterday, one woman and four men, are Chinese. The nationalities of the other five, all of them men, are unknown. The FBI is giving no details on the nature of the threat and says its information is uncorroborated.

Please stay tuned to CNN all day and all night for the most reliable news about your security.

Patrols on both the U.S. and Canadian sides have been beefed up, but the northern border of the United States is still porous and still an attractive crossing point for potential terrorists.

CNN correspondent Keith Oppenheim braved the midwinter chill of North Dakota to bring us this report.

(BEGIN VIDEO CLIP)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): Larry Jerde walks in the cold, just feet from the U.S.-Canadian line. This is where he grew up, where North Dakota and Minnesota meet Manitoba, Canada.

LARRY JERDE, U.S. BORDER PATROL: See this little rise right in front of us, goes to that cottonwood tree there? That's Canada.

OPPENHEIM: And it is where, 27 years ago, he decided he wanted to be an agent for the U.S. Border Patrol.

JERDE: My father was a Border Patrol agent, so I sort of knew about the job, and it looked like sort of an adventure to me.

OPPENHEIM: The adventure now is high stakes. Larry Jerde is part of a group watching 900 miles of border, which before 9/11 was protected by only 30 agents. Now the Border Patrol says that number has gone way up, though, it won't say by how much, and it's clear this line of defense is still stretched thin.

(on camera): How tough a job is it?

JERDE: At times, it's very tough, the amount of areas we have to cover with the amount of people we have, in the conditions we have.

OPPENHEIM (voice-over): The conditions can be brutal. Winds howl across the plains.

JERDE: With the wind chill, it's probably more like 30, 35 below. But you don't stand around out in it, it's a pretty nice day.

OPPENHEIM: Jerde and his agents use snowmobiles like most police officers drive squad cars, scouring the frozen tundra for signs of anything suspicious.

JERDE: We're looking for any sign of human to come through.

OPPENHEIM: Yet even in this intimidating weather, illegal immigrants enter, and authorities can only guess at how many attempt to get through.

GLEN SCHROEDER, U.S. BORDER PATROL, GRAND FORKS: I don't want to see organized smuggling develop to the north of us with an infrastructure to the south of us. It allows for the passage of people, of terrorists, terrorist weapons in the United States, and then the ability to leave this area and go to other parts of the country.

OPPENHEIM: Last year, Jerde and the agents in his district arrested more than 1,300 illegal aliens. Cases often start with a tip.

JERDE: People talk. We have a lot of people out here that tell us what's going on in their own backyard.

OPPENHEIM: Many times, helicopter crews fly out for a first look.

UNIDENTIFIED MALE: We're able to get out there to see if there's anything crossing out there, vehicle signs, foot signs.

OPPENHEIM: And while Jerde gets backup from the sky, he gets the same from underground.

JERDE: It's like a suitcase,...

UNIDENTIFIED MALE: Yes.

JERDE: ... easily carried.

OPPENHEIM: A variety of sensors, buried in strategic locations, detect metals and motion. (on camera): To show you how technology can help, I'm going to demonstrate something that I'm doing with the permission of the U.S. Border Patrol and the Royal Canadian Mounted Police. I am just on the Canadian side of the border. A few feet that way, is the United States.

There are sensors all around here. The Border Patrol won't say how many or where they are. But you can be sure of this, when I walk from here, Canada, to over here, the United States, that incursion across the border has been picked up by those sensors, which alert federal agents at a command center more than 70 miles away.

(voice-over): Along with sensors, there are cameras. At this U.S. Customs office, Larry Jerde and other agents can monitor what happens overnight when smaller border crossings shut down. But surveillance camera, recently installed, stay on.

JERDE: Jason (ph), why don't you show him Ambrose.

JASON, BORDER PATROL OFFICER: This one here is Ambrose, North Dakota, which is approximately 240 miles away, on the western half of North Dakota.

OPPENHEIM: While the equipment is evolving...

UNIDENTIFIED BORDER PATROL OFFICER: And the next one's on that risk assessment.

OPPENHEIM: ... so are relationships across the border. Since 9/11, Jerde and other agents formalized their meetings with Canadian authorities.

JERDE: Where they get together and share information.

OPPENHEIM (on camera): This is every day?

JERDE: This is every day.

OPPENHEIM: They both work in the same place?

JERDE: In the same room, at the same time.

JOHN FERGUSON, ROYAL CANADIAN MOUNTED POLICE: Not only coming to the table with certain information we have, but we're able to check that information against information that our partners have.

OPPENHEIM (voice-over): Still, with all of the improvements, the challenge is daunting.

DOUGLAS FRIEZ, N. DAKOTA EMERGENCY MANAGEMENT: In terms of the bad guys coming across, we need to be correct 100 percent of the time.

OPPENHEIM: And for his part, Larry Jerde doesn't like overconfidence.

JERDE: What mix of technology and manpower is required to make our borders safe? We're in that process now.

OPPENHEIM: For those trusted with the first line of defense, like Larry Jerde, there has been a realization that an open crossing, however inhospitable, is an invitation to danger. That is how September 11 changed the landscape here.

JERDE: It was a heck of a way to open eyes, but I think it's -- from bad will come good. And I think we're on our way.

OPPENHEIM: Keith Oppenheim, CNN, Pemberton (ph), North Dakota.

(END VIDEOTAPE)

COSTELLO: What will they do now? Offers to adopt orphans from the tsunami disaster are pouring in. Our correspondent has their story coming up.

And along with their dad, Jenna and Barbara Bush get a second shot at a once-in-a-lifetime lifestyle. Anderson Cooper on the Bush twins in five minutes.

And our e-mail "Question of the Morning," what do you think should be the top priority of the Bush administration? DAYBREAK@CNN.com. DAYBREAK@CNN.com.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It's 5:42 Eastern. Here's what's all new this morning.

At least 14 people were killed when a car bomb exploded outside of a Shiite mosque near Baghdad. Another 42 people were injured in that attack.

In money news, America Online is hoping to generate more revenue with a new pay-per-call policy for advertisers. Most search engines make their money on a pay-per-click basis, but AOL is hoping to attract businesses that want more of a direct response from users.

In culture, is SpongeBob SquarePants gay? Some Christian conservative groups say the cartoon character is being used to promote the acceptance of homosexuality. They issued a gay warning over a video being sent to schools that feature SpongeBob, Barney and other make believe characters.

In sports, Indiana Pacers forward Ron Artest is returning to the team. Pacers management says Artest will take part in workout and practices starting next week, but he still can't play in games. Artest was suspended for the entire season after entering the stands for that, you know, brawl in Detroit.

To the Forecast Center now and, Chad, good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Thank you, Chad.

Those are the latest headlines for you this morning.

The Bush twins, Barbara and Jenna, are once again being thrust into the spotlight with their dad's second inauguration.

CNN's Anderson Cooper takes a look.

(BEGIN VIDEOTAPE)

BUSH: There's no better way to come down the stretch with two women I love, our twins, Barbara and Jenna.

(CHEERING AND APPLAUSE)

ANDERSON COOPER, CNN CORRESPONDENT (voice-over): We've seen them watching the election returns with their dad, gracing "Vogue," and making more than one not-so-flattering tabloid appearance. The public just loves to read the dirt on any president's kids. And let's face it, the Bush twins have given the public a lot to read about.

ANN GERHART, "WASHINGTON POST" REPORTER: The initial impression was that they were party hearty girls. And the press was always looking for that to happen again. They've had their turn in the tabloids.

COOPER: There's no denying Jenna and Barbara Bush have a distinctive style, even when they were given a more responsible role speaking at last year's Republican Convention. It was their giggly delivery that got the press' attention.

JENNA BUSH, DAUGHTER OF PRESIDENT GEORGE W. BUSH: You know all those times when you're growing up and your parents embarrassed you? Well, this is payback time on live TV.

COOPER: Needless to say, their critics were not kind.

KATRINA SZISH, "US WEEKLY" EDITOR: And I think the press loves to be hard on people who are in the public eye, especially young kids. But, then again, I think it's also important for people who are in this public eye, even if they are younger and a little bit less mature than their parents, to realize that everything they do is going to be scrutinized.

COOPER: OK, so maybe they are just a couple of young women behaving badly. But has the press taken the twin bashing a bit too far? Who hasn't had the occasional college night out we prefer to forget? And if you can't party when you're 23, then, well, when can you?

Although, let's be real, when your Secret Service detail nicknames you Twinkle and Turquoise, they're just begging you to expose your most precocious side.

GERHART: They have a pretty active social life and I think people think they're two young women who have graduated from college and are on their way to adulthood and out having a good time. I don't think anybody necessarily expects that they'll go into the family business.

COOPER: They may not join the family firm, but the twins were born to be in the spotlight just one minute apart in 1981. They were 6 when their grandfather was elected president, 12 when their dad became governor of Texas, 18 when he won the White House. This week, they're preparing for their father's final inauguration.

SZISH: Barbara and Jenna have enlisted a major team of American fashion designers.

COOPER: And planning for their own futures.

GERHART: They didn't spend a lot of time at the White House and now that they are graduates and they've gone through this campaign, they seem to be getting on with their lives. Jenna is going to teach here in Washington at a poor school, following in her mother's footsteps, who did the same thing when she graduated from college. Barbara has talked about trying to help AIDS victims in Africa.

COOPER: Their mom is doing what so many moms do, looking farther into the future, to the day when they might lose that inner wild child and maybe settle down.

LAURA BUSH, FIRST LADY: I'd love to be grandfolks. Don't worry, they're not about to get married. Neither one of them have somebody they're going to marry.

(END VIDEOTAPE)

COSTELLO: That report from CNN's Anderson Cooper.

The twins, in case you were wondering, wore designer Badgley Mischka gowns during last night's inaugural balls.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

COSTELLO: Now for the latest from southern Asia. American troops are preparing to pull out of Indonesia, with full withdrawal expected to be done within 60 days. Indonesia had said they wanted all foreign troops out by the end of March. U.S. troops are turning over their duties to civilian aid workers.

A reduction in military presence is also in line with the United Nations' plan for southern Asia. The U.N. says the tsunami relief effort is moving into phase two now, that means the emphasis will be placed on reconstruction instead of recovery.

One of the lasting images from the tsunami disaster is the thousands of children who are now orphans. But fears for their future safety have led Sri Lanka and Indonesia to ban adoptions for the time being.

CNN's Suhasini Haidar has more from southern India on the hopes of those children.

(BEGIN VIDEOTAPE)

SUHASINI HAIDAR, CNN CORRESPONDENT (voice-over): Trying to restore normalcy at a home for tsunami orphans. Children bore the brunt of the tsunami's rage, about a third of those that died here in south India were under 12. But it's these kids who survived, while their parents died, who need immediate care.

(on camera): For the moment, the government has set up special homes, like this one, to house orphans of the tsunami and has set aside about $11,000 per child to be given to them when they turn 18.

(voice-over): Just a week after coming here, 10-year-old Gunashaker (ph) says he never wants to move again.

My sister and I will live here until we grow up, he insists.

But offers to adopt are pouring in from couples as far off as the United States, Italy, even Kosovo. State officials say more than a thousand have applied for fewer than 200 registered orphans. Among the perspective parents, schoolteacher Raviti (ph) and her husband. They have been wanting to adopt for a while, but images of the tsunami prompted them to apply formally.

When I see stories of tsunami orphans on television, she says, I just want to take care of them and make them forget their loss.

Even so, aid agencies say it's probably better to try to sponsor the kids back in their own villages along India's tsunami hit coastline.

TIM SCHAFFTER, UNICEF: The fisher communities are very close knit. So we find just naturally, without any outside assistance, identifying children from extended families and taking care of them.

HAIDAR: At the orphanage, the children themselves have simple prayers.

I pray I can study and finish school, says Josinta (ph).

I pray I become a doctor or a policeman, says Gunashaka (ph).

I pray that God protects all children, says Vijay (ph), and that a tsunami never happens again.

Suhasini Haidar, CNN, Nago Putnam (ph), South India.

(END VIDEOTAPE)

COSTELLO: Here's a look at what's all new in the next half-hour of DAYBREAK.

Federal authorities widen the net for suspects wanted in a possible terror plot in the northeast.

And an Air Force pilot just back from Iraq gives us his first- hand impression of the inauguration.

Stick with us for the second hour of DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: President Bush is starting the first full day of his second term with a prayer, this morning's service at the National Cathedral. It's the last official event of his inauguration. A full day yesterday included his inaugural address, a parade and a sprint through 10 different balls in just under 90 minutes. The president's speech included far-reaching, but nonspecific goals of spreading democracy worldwide. He included repeated references to freedom and liberty but did not directly mention Iraq or the 9/11 terror attacks.

So we wanted to ask you this question this morning, what do you think should be the president's top priority in term two? It is time to read some e-mail. And we've gotten a lot of interesting responses.

Ali, Chad, they're both here to help me out this morning.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: Well it's good, Chad, to see that, and, Carol, to see that the responses are as broad as the suggestions in Washington about what the priorities should be.

We've got something from Rick (ph), who is in New York or is from New York, saying Bush's top priority is to get a pair of asbestos gloves to handle all of the hot irons he has in the fire, Iraq, Social Security, the economy, education, et cetera, et cetera.

MYERS: J.J. (ph) from Atlanta thinks Bush should stop talking about it and start doing something about the nation's porous borders.

Teri (ph) in Fayetteville, North Carolina says U.S. energy independence should be priority No. 1 in the next four years.

And, like you said, Ali, these responses were all over the board. Go ahead.

VELSHI: Yes. And I mean health care comes into this thing. There are all sorts of responses we've been getting.

What have you got?

COSTELLO: Yes. What have I got? Well, let me read some of them.

Harold (ph) from Anchorage, Alaska says exiting Iraq is the No. 1 priority right now.

That's the same from Jordan (ph). He says Bush's first priority, get our troops home now.

VELSHI: California, the health -- Kevin (ph) in California says, quite simply, I think health care is very important.

So a lot of different priorities, and I guess that's why we actually have to figure out what they're going to be for the next little while.

MYERS: Christian (ph) in Florida thinks Bush should stop trying to save the world that doesn't want to be saved.

COSTELLO: Interesting. Well I think one of the big things he's going to tackle right away is Social Security. And we're going to be talking a lot about that in the next hour of DAYBREAK. He's actually going to go out and campaign, grass roots style, to get people onboard with his plan.

VELSHI: It's a tough sell. It's a tough one.

MYERS: It is.

COSTELLO: It's going to be a tough sell.

VELSHI: Yes.

COSTELLO: The next hour of DAYBREAK starts right now.

Straight ahead, Holy Day blast in Baghdad. A car bomb kills worshipers celebrating one of Islam's most important holidays.

Plus, Bush's big push, the president gears up for his controversial plan to overhaul Social Security.

And getting ready for the big football game or games? No, not the players, the fans. We'll have tips on cheering techniques.

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