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CNN Live At Daybreak

Condoleezza Rice Tackles Some Tough Issues in Middle East; At Least 25 Iraqi Police Officers Killed

Aired February 07, 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.


CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, top level talks. Condoleezza Rice tackles some tough issues in the Middle East.
Plus, he looked frail and his voice shook, but the pope tries to show he can still lead the faithful.

And did you tune in? It was a hard fought game, but the Patriots come out on top again.

It is Monday, February 7.

This is DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, a stand-off is unfolding at this moment in Switzerland's capital. Police say unidentified attackers stormed the Spanish consulate in Berne just about three hours ago. It's believed they've taken one or two hostages. We'll have a live report for you in just a few minutes.

A deadly morning for police in Iraq. More than two dozen officers and recruits have been killed in two separate attacks. Mortars struck a police station in Mosul and a car bomb went off at a police station in Ba'qubah.

Condoleezza Rice pushes ahead with Mideast peace efforts. The secretary of state met earlier with Israeli leaders. And within the hour, she's planning a news conference with Palestinian leader Mahmoud Abbas.

And, of course, we will bring that to you live.

President Bush releases his 2006 budget plan in just under five hours. He's sending Congress a $2.5 trillion proposal that cuts spending in a number of programs. Democrats say the plan hits poor people the hardest.

To the forecast center and Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning.

COSTELLO: Did you watch the Super Bowl?

MYERS: I watched the first quarter. I took -- I watched the first quarter, took an Ambien and went right to sleep.

COSTELLO: You're not supposed to say that on television.

MYERS: Well, they're one of our sponsors. Actually, there's no way -- you know what? My job is more important than staying up until whatever weather hour of the morning this thing was over with, so.

COSTELLO: Oh, go on.

MYERS: And you know what? I got online this morning and I found out who won.

COSTELLO: Really?

MYERS: Yes.

COSTELLO: So you didn't even need to watch the Super Bowl?

MYERS: Really.

COSTELLO: You missed Paul McCartney's riveting performance and everything.

MYERS: I did miss Paul McCartney. That was -- I -- yes.

COSTELLO: The newest song he sang was from 1973.

MYERS: With Barry Manilow.

Was it a duet?

COSTELLO: Unfortunately not.

MYERS: We'll have video.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The new U.S. top diplomat meets with the new Palestinian leader. Condoleezza Rice is at the West Bank headquarters of Mahmoud Abbas. They've been meeting for over an hour now.

Our State Department correspondent, Andrea Koppel, joins us now live from Ramallah -- good morning, Andrea.

ANDREA KOPPEL, CNN CORRESPONDENT: Hi, Carol.

Just to give you a feeling for how different this meeting is from the last time the U.S. secretary of state, then Colin Powell, met with a Palestinian president, it was also here in this leadership compound of Ramallah. But at that time Yasser Arafat was under siege. He was kept inside the building behind me by Israeli Defense Forces. And he was basically kept there for several years, until he died in November.

And it was just a couple of months after that meeting with Secretary Powell that President Bush declared, in June, 2002, that we needed, that the Middle East needed and the Israeli-Palestinian peace process needed a new Palestinian leadership. That was it. After that, no U.S., senior U.S. official met with the Palestinian president, until today.

Secretary of State Condoleezza Rice in the building behind me having lunch with President Mahmoud Abbas, someone that the U.S. believes, and Israel also believes, is committed to trying to make peace with Israel. He's someone who's seen as a moderate.

Now, what Secretary Rice is telling Mahmoud Abbas right now is that the U.S. wants to help him build up this very fragile democracy. There were only democratic elections there last month. So she wants to help the Palestinians build institutions of democracy.

She's also looking forward to tomorrow's summit in Egypt, that's going to be hosted by the Egyptian president, the highest level meeting between an Israeli prime minister and a Palestinian president in over four years. There is expected to be a cease-fire that's declared there. And so Condoleezza Rice wants to try to help the Palestinians and the Israelis secure that cease-fire. She's talking about Palestinian security forces, what they can do to crack down on terrorism.

She, also, Carol, is talking with the president about President Bush's commitment to bring an additional $350 million into this part of the world, into the Palestinian territories, to try to improve their standard of living -- Carol.

COSTELLO: Andrea Koppel live in Ramallah this morning.

Thank you.

And we are following that developing story out of Switzerland's capital. Overnight, the Spanish consulate in Berne was stormed. Officials in Spain are keeping close tabs as the stand-off continues to unfold.

Let's go straight to Madrid and CNN's Al Goodman to find out more -- hello, Al.

AL GOODMAN, CNN CORRESPONDENT: Carol, good morning.

A senior aide to the Spanish prime minister tells CNN that there were one or two hostage takers, one or two people inside the consulate who were taken hostage and that one consulate employee, possibly a driver, was beaten as the hostage takers went on the way in.

Now, we don't have a motive for this. We do know that the consulate is in a separate building about a half a mile away from the Spanish embassy in Berne, Switzerland.

Now, we also are hearing from state radio, that's run by the Spanish government, that, indeed, there is only one hostage taker and they're describing the hostage taker as a common criminal. So that might throw a little cold water on thought that maybe this is Islamic terrorist related. Apparently we don't have that link at this time, although officials are stressing caution, that they don't really know exactly what's happening inside that building -- Carol.

COSTELLO: But, I guess, Al, the question that I have is why Switzerland?

GOODMAN: Well, at this time, as we've mentioned earlier this day, Carol, Spain is seeking the extradition from Switzerland of an alleged Islamic terrorist. Spain, the Spanish justice system wants to get this man who's currently in Swiss custody down to Spain. So that's one thought, maybe a possible connection there.

We've asked Spanish officials about that. They're not going there. They're saying it doesn't look like that at this time.

Otherwise, we don't really seem to have an indication, possibly just a target of opportunity. As we say, this consulate building, which only had about 12 employees, nine or 10 Spaniards and a few Swiss nationals working for the Spaniards, is in a separate location, about a half a mile from the main Spanish embassy in Berne, which we typically would think to be more heavily fortified -- Carol.

COSTELLO: Al Goodman live in Madrid this morning.

Thank you.

At least 25 Iraqi police officers have been killed this morning by insurgents attacks in Mosul and Ba'qubah.

CNN senior international correspondent Nic Robertson is live from Baghdad now -- hello, Nic.

NIC ROBERTSON, CNN CORRESPONDENT: Hello, Carol.

Well, both of those attacks coming within the space of an hour at 10:30 in the morning Iraqi time. Eleven Iraqi policemen were killed when a mortar landed very close to them while they were at a hospital in the city of Mosul. To the south, about 45 kilometers, 30 or 40 miles northeast of Baghdad in the town of Ba'qubah, another attack on a police post. There, a taxi filled with explosives detonated about 50 feet from the gate of the police station, we are told. Fourteen policemen and police recruits were killed in that particular attack.

Now, according to city officials, they say 15 civilians were killed and 16 wounded. But the Iraqi police saying it was 14 policemen and recruits. But that just not any police station. That the joint command and control center, one of the new nerve centers being set up in cities throughout Iraq. It is the command post, the joint command post for both police, for fire and for the ambulance service in the city.

Also, we've been told that late on Sunday, one U.S. soldier was killed just north of Baghdad, two of his colleagues wounded, when a roadside bomb went off as they were passing -- Carol.

COSTELLO: Nic Robertson live in Baghdad this morning.

Thank you.

President Bush is sending his budget plan to Congress this morning. The budget for the fiscal year 2006 starts on October 1. In the proposal, the president wants to combine four Labor Department job programs and cut spending to $3.9 billion. Plus, he wants to combine federal aid to states for five programs and cut spending, raise the National Institutes of Health's spending by just 7/10 of 1 percent and raise the National Science Foundation's spending by 2.4 percent.

The "New York Times" is reporting that President Bush's budget would more than double the co-payment charged to many veterans for prescription drugs. It would also require some to pay a fee of $250 a year for the privilege of using government health care.

Hope you got all that.

Much more to come on DAYBREAK this hour.

Simmering tensions. President Bush has talked tough about Iran and now Iran is talking back.

Also, how is the pope feeling this morning? We'll take you to Rome a day after his hospital room blessing.

And did you watch the game? President Bush probably watched the game. I'm sure he did. And I'm sure he watched those commercials, too. Didn't you? We want to know what your favorite Super Bowl ads were.

But first, here's a look at what else is making news this Monday morning, February 7.

(COMMERCIAL BREAK)

COSTELLO: A heartbreaking story out of Alabama this morning. First, the shocking discovery of three young children found dead in their apartment, apparently starved to death. Now police say the mother has confessed to killing them.

CNN's Carol Lin has more for you.

(BEGIN VIDEO TAPE)

CAROL LIN, CNN CORRESPONDENT (voice-over): The mother of the three children found dead in this Alabama apartment is now charged with capital murder. Huntsville police say 33-year-old Natashay Ward told them she deliberately starved her son and two daughters to death. Police report that the disturbing confession came late Friday night.

Earlier that day, emergency workers responding to a distress call at the home found the bodies. WENDELL JOHNSON, HUNTSVILLE, POLICE DEPARTMENT: The utilities had been turned off since January 12. The children had been missing from school. They'd never returned to Ridgecrest after the school break.

LIN: Eleven-year-old Shanieka, 9-year-old Latricia and Christopher, just 8, were found fully clothed, lying on the floor in separate bedrooms that had no beds. They appeared malnourished.

JOHNSON: Please try not to speculate, read anything and go on rumors and innuendoes. This may be a long and extensive investigation.

LIN: Grieving family members say they tried to give the mother money for the electric bill, but Natashay Ward would not let them in. State social services say they called on the family in December, but no one answered the door.

It is unclear when the children died.

Neighbor Eddie Love says he last saw the family two weeks ago.

EDDIE LOVE, NEIGHBOR: They were standing across the street (UNINTELLIGIBLE). And I used to see them going back and forth to school and we used to walk over there together. And she never did talk much.

LIN: When the bodies were discovered on Friday, the children's father was at the scene. So was their grandmother, whom police believe called 911. Both are being questioned. Neither lived with the family.

(END VIDEO TAPE)

COSTELLO: Autopsies will be performed on the children to confirm the cause of death. The mother now being held without bond on capital murder charges.

The latest now on another shocking case of alleged child abuse. A couple accused of torturing five of their seven foster children remains jailed in Utah this morning, awaiting extradition to Florida. Sheriff's deputies in southeast Utah arrested John and Linda Dollar on Friday. Authorities tracked down the fugitive couple by tracing their cell phone calls.

(BEGIN VIDEO CLIP)

LT. ALAN FREESTON, SAN JUAN COUNTY, SHERIFF'S DEPARTMENT: It's exciting to take these people off the street that have been, you know, charged with these types of crimes. Hopefully this will provide an opportunity for those children to have some closure and maybe begin to recover from what's happened to them.

(END VIDEO CLIP)

COSTELLO: Police say the couple starved their adopted children. There are also accusations that they pulled their toenails out. No word on when the Dollars will be sent back to Florida.

Your news, money, weather and sports.

It's 5:15 Eastern.

Here's what's all new this morning.

After meeting with Israeli leaders, Secretary of State Condoleezza Rice is in the West Bank this morning, pushing for Mideast peace. She's expected to hold a news conference with the Palestinian leader, Mahmoud Abbas, within a few minutes.

One, possibly two men, burst into the Spanish consulate in Berne, Switzerland this morning. Police tell CNN they believe one or two people have been taken hostage. No word yet on what the intruders are demanding.

In money news, pump prices are up again. A national survey finds the average price for self-serve regular gas rose more than $0.06 over the past two weeks.

In culture, actors honor their own at the Screen Actors Guild Awards. "Sideways" won the top prize in the best ensemble cast category. It beat out "Million Dollar Baby" and "The Aviator."

In sports, if you haven't heard, the Pats do it again. The New England Patriots arte Super Bowl champs for the third time in four seasons. They beat the Philadelphia Eagles 24-21 in Jacksonville.

Good morning, Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Diplomacy or something tougher? Which way will America's relationship with Iran go?

As White House correspondent Suzanne Malveaux reports, both nations are already on a bumpy road.

(BEGIN VIDEO TAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): In this year's State of the Union address, President Bush did not call Iran the axis of evil. But it was pretty close.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Today, Iran remains the world's primary state sponsor of terror, pursuing nuclear weapons while depriving its people of the freedom they seek and deserve.

MALVEAUX: On this day, Iran's chief nuclear negotiator fired back, saying any aggressive military action by the U.S. would be answered in kind. HASSAN ROHANI, SUPREME NATIONAL SECURITY COUNCIL (THROUGH TRANSLATOR): I don't think America itself will take such a risk because America knows very well that we will strongly answer such an attack. The Americans are very well aware of our capabilities. They know our capabilities for retaliating against such attacks.

MALVEAUX: But top White House officials insist the U.S. is working with its European allies on a diplomatic solution to convince Tehran to abandon its nuclear ambitions.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: I think there's a good faith effort underway by our European allies to try to resolve this matter diplomatically. We support that effort.

MALVEAUX: But Bush critics say the president needs to do more. While Britain, France and Germany have offered economic and diplomatic incentives to motivate Iran to suspend its nuclear program, the Bush administration is holding out.

MADELINE ALBRIGHT, FORMER SECRETARY OF STATE: We can't be waiting for a change in regime in Iran. Then, also, it seems, that even the reformers are eager to have some kind of a nuclear capability.

SEN. JOHN MCCAIN (R), ARIZONA: We can't take the military option completely off the table, but we can't saber rattle either.

MALVEAUX: One former secretary of state warns if Mr. Bush's policy is not successful, the consequences could be dire.

HENRY KISSINGER, FORMER SECRETARY OF STATE: If nuclear weapons spread to Iran, the genie will be really totally out of the bottle and we will live in a different world, with huge risks for mankind.

MALVEAUX (on camera): And in a clear sign the administration's is to downplay any potential conflict with Iran, Secretary of Defense Donald Rumsfeld, who appeared on four talk shows on the subject of Iran, had very little to say.

Suzanne Malveaux, CNN, the White House.

(END VIDEO TAPE)

COSTELLO: Now to our war room and a look at Iran and the furor over its nuclear program.

For that, we're joined by our senior international editor, David Clinch -- good morning, David.

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Good morning, Carol.

And you heard Suzanne there really point out what is the key point in terms of Iran and the United States military posture. Donald Rumsfeld, Secretary Rumsfeld not really prepared to talk about Iran from a military point of view. It's a very unappetizing idea for the U.S. military, the idea of a military attack on Iran. There are a number of reasons for that. Donald Rumsfeld, Secretary Rumsfeld himself pointing out the obvious, that the U.S. military is strained at the moment with its deployments in Iraq, Afghanistan and elsewhere. So just the key point of available troops. But also the foe. If you're talking about Iran from a military point of view, it's a very different animal than Iraq was. Iran has a standing army of maybe two million or more, but also the patriotism factor. In Iraq, there was always the idea that the Iraqi military might not fight, might not fight to protect Saddam Hussein. In Iran, the calculation, we're told, from most military experts, is that Iranians would flock to support the country if attacked by the U.S. or, of course, if attacked by Israel.

And Israel, of course, is the difficult factor here. The United States trying to control the situation, not talking about military operations right now, but also talking to Israel about restraining itself. Israel has made it clear that it will not allow Iran to become a nuclear power.

So a very delicate balance, but just from a purely military point of view, not a very appetizing idea for the U.S. military to be talking about attacking Iran. So diplomacy is the key factor right now.

COSTELLO: Which is probably why we heard Condoleezza Rice mention that word so many times, as it applied to Iran. This also may be a reason why Iran continues to talk rather tough.

CLINCH: Well, they do. They were a little bit upset about Condoleezza Rice, Secretary Rice's comments. She was talking about diplomacy, but she does refer and she did a few days ago refer to what she calls the unelected mullahs that run Iran. And we had a comment today in the "USA Today," it interviewed a top Iranian official. He would say -- he says, this is former President Rafsanjani: "The U.S. will not dare to attack us. We are used to this nonsense. Ms. Rice is a bit emotional. She talks tough, but she cannot be tough herself."

Now, that's interesting for a number of reasons, a little bit rude about Secretary Rice, but in their view, the mullahs' view, she is being rude to them, calling them unelected mullahs.

But think about this guy Rafsanjani. This is the man who's interviewed by "USA Today." He is very much a conservative and he could very possibly be the next president of Iran in the elections later this year.

COSTELLO: I guess as a female, it struck me as a rather sexist comment, as well, being a bit emotional.

CLINCH: Well, this is Iran that we're talking about and, of course, that's one of the things that Iran, criticized heavily by the U.N. yesterday for the lack of human rights in regard to women. So a very interesting issue that we'll be watching very closely. But the military point of view, a very difficult subject for the U.S. military to address. COSTELLO: David Clinch live in Atlanta.

Thank you.

Pope John Paul makes a determined public appearance, greeting his flock from a hospital window. We'll get an update on his health and a live report from Rome in just a few minutes.

And call it the Patriots act -- New England fans throwing around the "D" word.

You are watching DAYBREAK for Monday, February 7.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM SUPER BOWL HALF-TIME SHOW, COURTESY FOX TELEVISION)

PAUL MCCARTNEY, ENTERTAINER (SINGING): Asked the girl what she wanted to be, she said baby, can't you see, I want to be famous, a star on the screen...

(END VIDEO CLIP)

COSTELLO: Chad, I think that song was from 1966.

MYERS: Yes. And the FCC looking into the song, Carol. There must be some hidden meaning behind beep-beep, um, beep-beep, yes.

COSTELLO: You know, I thought that sounded kind of dirty myself.

MYERS: I'm kidding. Kidding.

COSTELLO: It was a squeaky clean half-time performance at the Super Bowl.

MYERS: It sure was.

COSTELLO: And...

MYERS: It looked great.

COSTELLO: Oh, I'm sorry, Chad.

We've got to break away from our Super Bowl coverage right now to head to Ramallah.

MYERS: Yes.

COSTELLO: Because, as you know, Secretary of State Condoleezza Rice has been talking to the leader there, Mahmoud Abbas.

And they're now holding a joint press conference, so let's listen in.

MAHMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (THROUGH TRANSLATOR): In the name of god, ladies and gentlemen, we welcome very warmly the visit of Dr. Rice, the secretary of state. This visit, which we count on very much, and have different hopes on it regarding the peace process. We congratulate her in the occasion of obtaining the confidence of President Bush and on endorsing her appointment by the Congress and we say that you are in the right place, always.

On this very occasion, we would like to thank through her President Bush for his positive positions, many positive positions and for being enthusiastic for helping the Palestinian people, which he expressed and said that he will give to the Palestinian people and for the full American commitment to the peace process in the Middle East.

We also hope that the U.S. will have an effective role and a basic role in the peace process being the first country or the main country in the quartet. On this occasion we request and we always request, assistance regarding issues relating to the settlement of the wall and other issues relating to Jerusalem. And we thank the American government for its intervention regarding the properties, the absentee properties or the absentee property law.

On our part, we said, and we always say, we did and we always do, in order to implement our commitment regarding the road map and we hope that the Israeli party will also meet its commitment, because this is the only way to reach President Bush's vision of establishing two states, an independent Palestinian state, congruous and vital, viable, that lives alongside with the state of Israel in security and peace.

We also have started the process of reform -- financial, economic, judicial and other -- and we are proceeding ahead on this track in order to lay the foundation, the sound foundations for the establishment of the Palestinian state.

Tomorrow, we are going to Sharm el-Sheikh and there -- there are issues that were agreed upon and we hope that the results of this summit will be positive in order to enlist from them. There will be other meetings between us and the Israeli prime minister. And on this occasion we'd like to thank President Hamid Hosni Mubarak for his generous invitation.

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Aired February 7, 2005 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, top level talks. Condoleezza Rice tackles some tough issues in the Middle East.
Plus, he looked frail and his voice shook, but the pope tries to show he can still lead the faithful.

And did you tune in? It was a hard fought game, but the Patriots come out on top again.

It is Monday, February 7.

This is DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, a stand-off is unfolding at this moment in Switzerland's capital. Police say unidentified attackers stormed the Spanish consulate in Berne just about three hours ago. It's believed they've taken one or two hostages. We'll have a live report for you in just a few minutes.

A deadly morning for police in Iraq. More than two dozen officers and recruits have been killed in two separate attacks. Mortars struck a police station in Mosul and a car bomb went off at a police station in Ba'qubah.

Condoleezza Rice pushes ahead with Mideast peace efforts. The secretary of state met earlier with Israeli leaders. And within the hour, she's planning a news conference with Palestinian leader Mahmoud Abbas.

And, of course, we will bring that to you live.

President Bush releases his 2006 budget plan in just under five hours. He's sending Congress a $2.5 trillion proposal that cuts spending in a number of programs. Democrats say the plan hits poor people the hardest.

To the forecast center and Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning.

COSTELLO: Did you watch the Super Bowl?

MYERS: I watched the first quarter. I took -- I watched the first quarter, took an Ambien and went right to sleep.

COSTELLO: You're not supposed to say that on television.

MYERS: Well, they're one of our sponsors. Actually, there's no way -- you know what? My job is more important than staying up until whatever weather hour of the morning this thing was over with, so.

COSTELLO: Oh, go on.

MYERS: And you know what? I got online this morning and I found out who won.

COSTELLO: Really?

MYERS: Yes.

COSTELLO: So you didn't even need to watch the Super Bowl?

MYERS: Really.

COSTELLO: You missed Paul McCartney's riveting performance and everything.

MYERS: I did miss Paul McCartney. That was -- I -- yes.

COSTELLO: The newest song he sang was from 1973.

MYERS: With Barry Manilow.

Was it a duet?

COSTELLO: Unfortunately not.

MYERS: We'll have video.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The new U.S. top diplomat meets with the new Palestinian leader. Condoleezza Rice is at the West Bank headquarters of Mahmoud Abbas. They've been meeting for over an hour now.

Our State Department correspondent, Andrea Koppel, joins us now live from Ramallah -- good morning, Andrea.

ANDREA KOPPEL, CNN CORRESPONDENT: Hi, Carol.

Just to give you a feeling for how different this meeting is from the last time the U.S. secretary of state, then Colin Powell, met with a Palestinian president, it was also here in this leadership compound of Ramallah. But at that time Yasser Arafat was under siege. He was kept inside the building behind me by Israeli Defense Forces. And he was basically kept there for several years, until he died in November.

And it was just a couple of months after that meeting with Secretary Powell that President Bush declared, in June, 2002, that we needed, that the Middle East needed and the Israeli-Palestinian peace process needed a new Palestinian leadership. That was it. After that, no U.S., senior U.S. official met with the Palestinian president, until today.

Secretary of State Condoleezza Rice in the building behind me having lunch with President Mahmoud Abbas, someone that the U.S. believes, and Israel also believes, is committed to trying to make peace with Israel. He's someone who's seen as a moderate.

Now, what Secretary Rice is telling Mahmoud Abbas right now is that the U.S. wants to help him build up this very fragile democracy. There were only democratic elections there last month. So she wants to help the Palestinians build institutions of democracy.

She's also looking forward to tomorrow's summit in Egypt, that's going to be hosted by the Egyptian president, the highest level meeting between an Israeli prime minister and a Palestinian president in over four years. There is expected to be a cease-fire that's declared there. And so Condoleezza Rice wants to try to help the Palestinians and the Israelis secure that cease-fire. She's talking about Palestinian security forces, what they can do to crack down on terrorism.

She, also, Carol, is talking with the president about President Bush's commitment to bring an additional $350 million into this part of the world, into the Palestinian territories, to try to improve their standard of living -- Carol.

COSTELLO: Andrea Koppel live in Ramallah this morning.

Thank you.

And we are following that developing story out of Switzerland's capital. Overnight, the Spanish consulate in Berne was stormed. Officials in Spain are keeping close tabs as the stand-off continues to unfold.

Let's go straight to Madrid and CNN's Al Goodman to find out more -- hello, Al.

AL GOODMAN, CNN CORRESPONDENT: Carol, good morning.

A senior aide to the Spanish prime minister tells CNN that there were one or two hostage takers, one or two people inside the consulate who were taken hostage and that one consulate employee, possibly a driver, was beaten as the hostage takers went on the way in.

Now, we don't have a motive for this. We do know that the consulate is in a separate building about a half a mile away from the Spanish embassy in Berne, Switzerland.

Now, we also are hearing from state radio, that's run by the Spanish government, that, indeed, there is only one hostage taker and they're describing the hostage taker as a common criminal. So that might throw a little cold water on thought that maybe this is Islamic terrorist related. Apparently we don't have that link at this time, although officials are stressing caution, that they don't really know exactly what's happening inside that building -- Carol.

COSTELLO: But, I guess, Al, the question that I have is why Switzerland?

GOODMAN: Well, at this time, as we've mentioned earlier this day, Carol, Spain is seeking the extradition from Switzerland of an alleged Islamic terrorist. Spain, the Spanish justice system wants to get this man who's currently in Swiss custody down to Spain. So that's one thought, maybe a possible connection there.

We've asked Spanish officials about that. They're not going there. They're saying it doesn't look like that at this time.

Otherwise, we don't really seem to have an indication, possibly just a target of opportunity. As we say, this consulate building, which only had about 12 employees, nine or 10 Spaniards and a few Swiss nationals working for the Spaniards, is in a separate location, about a half a mile from the main Spanish embassy in Berne, which we typically would think to be more heavily fortified -- Carol.

COSTELLO: Al Goodman live in Madrid this morning.

Thank you.

At least 25 Iraqi police officers have been killed this morning by insurgents attacks in Mosul and Ba'qubah.

CNN senior international correspondent Nic Robertson is live from Baghdad now -- hello, Nic.

NIC ROBERTSON, CNN CORRESPONDENT: Hello, Carol.

Well, both of those attacks coming within the space of an hour at 10:30 in the morning Iraqi time. Eleven Iraqi policemen were killed when a mortar landed very close to them while they were at a hospital in the city of Mosul. To the south, about 45 kilometers, 30 or 40 miles northeast of Baghdad in the town of Ba'qubah, another attack on a police post. There, a taxi filled with explosives detonated about 50 feet from the gate of the police station, we are told. Fourteen policemen and police recruits were killed in that particular attack.

Now, according to city officials, they say 15 civilians were killed and 16 wounded. But the Iraqi police saying it was 14 policemen and recruits. But that just not any police station. That the joint command and control center, one of the new nerve centers being set up in cities throughout Iraq. It is the command post, the joint command post for both police, for fire and for the ambulance service in the city.

Also, we've been told that late on Sunday, one U.S. soldier was killed just north of Baghdad, two of his colleagues wounded, when a roadside bomb went off as they were passing -- Carol.

COSTELLO: Nic Robertson live in Baghdad this morning.

Thank you.

President Bush is sending his budget plan to Congress this morning. The budget for the fiscal year 2006 starts on October 1. In the proposal, the president wants to combine four Labor Department job programs and cut spending to $3.9 billion. Plus, he wants to combine federal aid to states for five programs and cut spending, raise the National Institutes of Health's spending by just 7/10 of 1 percent and raise the National Science Foundation's spending by 2.4 percent.

The "New York Times" is reporting that President Bush's budget would more than double the co-payment charged to many veterans for prescription drugs. It would also require some to pay a fee of $250 a year for the privilege of using government health care.

Hope you got all that.

Much more to come on DAYBREAK this hour.

Simmering tensions. President Bush has talked tough about Iran and now Iran is talking back.

Also, how is the pope feeling this morning? We'll take you to Rome a day after his hospital room blessing.

And did you watch the game? President Bush probably watched the game. I'm sure he did. And I'm sure he watched those commercials, too. Didn't you? We want to know what your favorite Super Bowl ads were.

But first, here's a look at what else is making news this Monday morning, February 7.

(COMMERCIAL BREAK)

COSTELLO: A heartbreaking story out of Alabama this morning. First, the shocking discovery of three young children found dead in their apartment, apparently starved to death. Now police say the mother has confessed to killing them.

CNN's Carol Lin has more for you.

(BEGIN VIDEO TAPE)

CAROL LIN, CNN CORRESPONDENT (voice-over): The mother of the three children found dead in this Alabama apartment is now charged with capital murder. Huntsville police say 33-year-old Natashay Ward told them she deliberately starved her son and two daughters to death. Police report that the disturbing confession came late Friday night.

Earlier that day, emergency workers responding to a distress call at the home found the bodies. WENDELL JOHNSON, HUNTSVILLE, POLICE DEPARTMENT: The utilities had been turned off since January 12. The children had been missing from school. They'd never returned to Ridgecrest after the school break.

LIN: Eleven-year-old Shanieka, 9-year-old Latricia and Christopher, just 8, were found fully clothed, lying on the floor in separate bedrooms that had no beds. They appeared malnourished.

JOHNSON: Please try not to speculate, read anything and go on rumors and innuendoes. This may be a long and extensive investigation.

LIN: Grieving family members say they tried to give the mother money for the electric bill, but Natashay Ward would not let them in. State social services say they called on the family in December, but no one answered the door.

It is unclear when the children died.

Neighbor Eddie Love says he last saw the family two weeks ago.

EDDIE LOVE, NEIGHBOR: They were standing across the street (UNINTELLIGIBLE). And I used to see them going back and forth to school and we used to walk over there together. And she never did talk much.

LIN: When the bodies were discovered on Friday, the children's father was at the scene. So was their grandmother, whom police believe called 911. Both are being questioned. Neither lived with the family.

(END VIDEO TAPE)

COSTELLO: Autopsies will be performed on the children to confirm the cause of death. The mother now being held without bond on capital murder charges.

The latest now on another shocking case of alleged child abuse. A couple accused of torturing five of their seven foster children remains jailed in Utah this morning, awaiting extradition to Florida. Sheriff's deputies in southeast Utah arrested John and Linda Dollar on Friday. Authorities tracked down the fugitive couple by tracing their cell phone calls.

(BEGIN VIDEO CLIP)

LT. ALAN FREESTON, SAN JUAN COUNTY, SHERIFF'S DEPARTMENT: It's exciting to take these people off the street that have been, you know, charged with these types of crimes. Hopefully this will provide an opportunity for those children to have some closure and maybe begin to recover from what's happened to them.

(END VIDEO CLIP)

COSTELLO: Police say the couple starved their adopted children. There are also accusations that they pulled their toenails out. No word on when the Dollars will be sent back to Florida.

Your news, money, weather and sports.

It's 5:15 Eastern.

Here's what's all new this morning.

After meeting with Israeli leaders, Secretary of State Condoleezza Rice is in the West Bank this morning, pushing for Mideast peace. She's expected to hold a news conference with the Palestinian leader, Mahmoud Abbas, within a few minutes.

One, possibly two men, burst into the Spanish consulate in Berne, Switzerland this morning. Police tell CNN they believe one or two people have been taken hostage. No word yet on what the intruders are demanding.

In money news, pump prices are up again. A national survey finds the average price for self-serve regular gas rose more than $0.06 over the past two weeks.

In culture, actors honor their own at the Screen Actors Guild Awards. "Sideways" won the top prize in the best ensemble cast category. It beat out "Million Dollar Baby" and "The Aviator."

In sports, if you haven't heard, the Pats do it again. The New England Patriots arte Super Bowl champs for the third time in four seasons. They beat the Philadelphia Eagles 24-21 in Jacksonville.

Good morning, Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Diplomacy or something tougher? Which way will America's relationship with Iran go?

As White House correspondent Suzanne Malveaux reports, both nations are already on a bumpy road.

(BEGIN VIDEO TAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): In this year's State of the Union address, President Bush did not call Iran the axis of evil. But it was pretty close.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Today, Iran remains the world's primary state sponsor of terror, pursuing nuclear weapons while depriving its people of the freedom they seek and deserve.

MALVEAUX: On this day, Iran's chief nuclear negotiator fired back, saying any aggressive military action by the U.S. would be answered in kind. HASSAN ROHANI, SUPREME NATIONAL SECURITY COUNCIL (THROUGH TRANSLATOR): I don't think America itself will take such a risk because America knows very well that we will strongly answer such an attack. The Americans are very well aware of our capabilities. They know our capabilities for retaliating against such attacks.

MALVEAUX: But top White House officials insist the U.S. is working with its European allies on a diplomatic solution to convince Tehran to abandon its nuclear ambitions.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: I think there's a good faith effort underway by our European allies to try to resolve this matter diplomatically. We support that effort.

MALVEAUX: But Bush critics say the president needs to do more. While Britain, France and Germany have offered economic and diplomatic incentives to motivate Iran to suspend its nuclear program, the Bush administration is holding out.

MADELINE ALBRIGHT, FORMER SECRETARY OF STATE: We can't be waiting for a change in regime in Iran. Then, also, it seems, that even the reformers are eager to have some kind of a nuclear capability.

SEN. JOHN MCCAIN (R), ARIZONA: We can't take the military option completely off the table, but we can't saber rattle either.

MALVEAUX: One former secretary of state warns if Mr. Bush's policy is not successful, the consequences could be dire.

HENRY KISSINGER, FORMER SECRETARY OF STATE: If nuclear weapons spread to Iran, the genie will be really totally out of the bottle and we will live in a different world, with huge risks for mankind.

MALVEAUX (on camera): And in a clear sign the administration's is to downplay any potential conflict with Iran, Secretary of Defense Donald Rumsfeld, who appeared on four talk shows on the subject of Iran, had very little to say.

Suzanne Malveaux, CNN, the White House.

(END VIDEO TAPE)

COSTELLO: Now to our war room and a look at Iran and the furor over its nuclear program.

For that, we're joined by our senior international editor, David Clinch -- good morning, David.

DAVID CLINCH, CNN INTERNATIONAL EDITOR: Good morning, Carol.

And you heard Suzanne there really point out what is the key point in terms of Iran and the United States military posture. Donald Rumsfeld, Secretary Rumsfeld not really prepared to talk about Iran from a military point of view. It's a very unappetizing idea for the U.S. military, the idea of a military attack on Iran. There are a number of reasons for that. Donald Rumsfeld, Secretary Rumsfeld himself pointing out the obvious, that the U.S. military is strained at the moment with its deployments in Iraq, Afghanistan and elsewhere. So just the key point of available troops. But also the foe. If you're talking about Iran from a military point of view, it's a very different animal than Iraq was. Iran has a standing army of maybe two million or more, but also the patriotism factor. In Iraq, there was always the idea that the Iraqi military might not fight, might not fight to protect Saddam Hussein. In Iran, the calculation, we're told, from most military experts, is that Iranians would flock to support the country if attacked by the U.S. or, of course, if attacked by Israel.

And Israel, of course, is the difficult factor here. The United States trying to control the situation, not talking about military operations right now, but also talking to Israel about restraining itself. Israel has made it clear that it will not allow Iran to become a nuclear power.

So a very delicate balance, but just from a purely military point of view, not a very appetizing idea for the U.S. military to be talking about attacking Iran. So diplomacy is the key factor right now.

COSTELLO: Which is probably why we heard Condoleezza Rice mention that word so many times, as it applied to Iran. This also may be a reason why Iran continues to talk rather tough.

CLINCH: Well, they do. They were a little bit upset about Condoleezza Rice, Secretary Rice's comments. She was talking about diplomacy, but she does refer and she did a few days ago refer to what she calls the unelected mullahs that run Iran. And we had a comment today in the "USA Today," it interviewed a top Iranian official. He would say -- he says, this is former President Rafsanjani: "The U.S. will not dare to attack us. We are used to this nonsense. Ms. Rice is a bit emotional. She talks tough, but she cannot be tough herself."

Now, that's interesting for a number of reasons, a little bit rude about Secretary Rice, but in their view, the mullahs' view, she is being rude to them, calling them unelected mullahs.

But think about this guy Rafsanjani. This is the man who's interviewed by "USA Today." He is very much a conservative and he could very possibly be the next president of Iran in the elections later this year.

COSTELLO: I guess as a female, it struck me as a rather sexist comment, as well, being a bit emotional.

CLINCH: Well, this is Iran that we're talking about and, of course, that's one of the things that Iran, criticized heavily by the U.N. yesterday for the lack of human rights in regard to women. So a very interesting issue that we'll be watching very closely. But the military point of view, a very difficult subject for the U.S. military to address. COSTELLO: David Clinch live in Atlanta.

Thank you.

Pope John Paul makes a determined public appearance, greeting his flock from a hospital window. We'll get an update on his health and a live report from Rome in just a few minutes.

And call it the Patriots act -- New England fans throwing around the "D" word.

You are watching DAYBREAK for Monday, February 7.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM SUPER BOWL HALF-TIME SHOW, COURTESY FOX TELEVISION)

PAUL MCCARTNEY, ENTERTAINER (SINGING): Asked the girl what she wanted to be, she said baby, can't you see, I want to be famous, a star on the screen...

(END VIDEO CLIP)

COSTELLO: Chad, I think that song was from 1966.

MYERS: Yes. And the FCC looking into the song, Carol. There must be some hidden meaning behind beep-beep, um, beep-beep, yes.

COSTELLO: You know, I thought that sounded kind of dirty myself.

MYERS: I'm kidding. Kidding.

COSTELLO: It was a squeaky clean half-time performance at the Super Bowl.

MYERS: It sure was.

COSTELLO: And...

MYERS: It looked great.

COSTELLO: Oh, I'm sorry, Chad.

We've got to break away from our Super Bowl coverage right now to head to Ramallah.

MYERS: Yes.

COSTELLO: Because, as you know, Secretary of State Condoleezza Rice has been talking to the leader there, Mahmoud Abbas.

And they're now holding a joint press conference, so let's listen in.

MAHMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (THROUGH TRANSLATOR): In the name of god, ladies and gentlemen, we welcome very warmly the visit of Dr. Rice, the secretary of state. This visit, which we count on very much, and have different hopes on it regarding the peace process. We congratulate her in the occasion of obtaining the confidence of President Bush and on endorsing her appointment by the Congress and we say that you are in the right place, always.

On this very occasion, we would like to thank through her President Bush for his positive positions, many positive positions and for being enthusiastic for helping the Palestinian people, which he expressed and said that he will give to the Palestinian people and for the full American commitment to the peace process in the Middle East.

We also hope that the U.S. will have an effective role and a basic role in the peace process being the first country or the main country in the quartet. On this occasion we request and we always request, assistance regarding issues relating to the settlement of the wall and other issues relating to Jerusalem. And we thank the American government for its intervention regarding the properties, the absentee properties or the absentee property law.

On our part, we said, and we always say, we did and we always do, in order to implement our commitment regarding the road map and we hope that the Israeli party will also meet its commitment, because this is the only way to reach President Bush's vision of establishing two states, an independent Palestinian state, congruous and vital, viable, that lives alongside with the state of Israel in security and peace.

We also have started the process of reform -- financial, economic, judicial and other -- and we are proceeding ahead on this track in order to lay the foundation, the sound foundations for the establishment of the Palestinian state.

Tomorrow, we are going to Sharm el-Sheikh and there -- there are issues that were agreed upon and we hope that the results of this summit will be positive in order to enlist from them. There will be other meetings between us and the Israeli prime minister. And on this occasion we'd like to thank President Hamid Hosni Mubarak for his generous invitation.

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