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CNN Live At Daybreak

Security Watch; Iraq Elections; 'War Room'; Where Does It Hurt?; Freeze Out

Aired February 17, 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.


KELLY WALLACE, CNN ANCHOR: Good morning, and welcome to the second half-hour of DAYBREAK. From the Time Warner Center in New York, I'm Kelly Wallace, in today for Carol Costello.
"Now in the News."

Defense Secretary Donald Rumsfeld is one of the officials warning that terrorists are getting ready for a new attack on the United States. Secretary Rumsfeld appears today before the House Armed Services Committee to defend the Pentagon's $419 billion budget.

This could be the day the White House announces President Bush's choice for the new post of director of national intelligence. The job was created in an intelligence reform bill the president signed back in December.

Music producer Phil Spector will be in court today in Los Angeles for a hearing regarding his murder case. Spector is accused of killing actress Lana Clarkson in his home two years ago.

What's new with the flu? A new strain called A-California (ph) will be added to the mix for next season's vaccine. The virus is infecting a lot of people around the world this year, causing a higher number of hospitalizations and deaths.

Time to get a check of the forecast. Rob Marciano in again for Chad Myers.

Good morning again -- Rob.

ROB MARCIANO, CNN METEOROLOGIST: Hi, Kelly.

I should have had the cold and flu map up to show you just what you were talking about, which is a lot of the states now reporting a high frequency of cold and flu. And we generally peak out in the middle of February, and that's where we are right now. So a lot of folks sniffling, not feeling all that well.

(WEATHER REPORT)

Kelly, that's the latest from here, back over to you. We'll see you in a bit.

WALLACE: All right, looks like it's pretty nice pretty much across the country.

Thanks -- Rob.

MARCIANO: Not too shabby.

WALLACE: OK, talk to you in a few minutes.

Well it is budget hearing time on Capitol Hill, and this is part of our "Security Watch." CIA Director Porter Goss was there yesterday. The nation's top spymaster warned -- quote -- "it may only be a matter of time before terrorists attack with weapons of mass destruction."

More on Porter Goss' testimony from CNN national security correspondent David Ensor.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): At his first appearance on Capitol Hill as intelligence chief, Porter Goss said the top threat to the nation's national security remains terrorism, causing mass casualties.

PORTER GOSS, CIA DIRECTOR: It may be only a matter of time before al Qaeda or other group attempts to use chemical, biological, radiological or nuclear weapons. We must focus on that.

ENSOR: Russian reports say terrorists may have stolen some nuclear materials in Russia in recent years, leading to concern about a possible dirty radioactive bomb.

SEN. JOHN ROCKEFELLER (D), INTELLIGENCE VICE CHAIRMAN: Can you assure the American people that the material missing from Russian nuclear sites has not found its way into terrorist hands?

GOSS: No, I can't make that assurance.

ENSOR: Homeland Security official James Loy said, though, that the most likely next attack will be a conventional one, along the same lines that troops are facing in Iraq.

ADM. JAMES LOY, DEP. SECRETARY, HOMELAND SECURITY: And we think we are most likely to be attacked with a vehicle-borne improvised explosive device, because that's the weapon of choice around the world.

ENSOR: Goss spoke of evidence both Iran and North Korea are moving ahead with nuclear weapons programs. Reflecting the criticism of the CIA about intelligence prior to the 9/11 attacks and on Iraq's weapons, or lack thereof, before the war, he stressed that the agency is getting more aggressive.

GOSS: Our officers are taking risks. And I will be asking them to take more risks, justifiable risks, because I would be much happier here explaining why we did something than why we did nothing.

ENSOR: On December 17, President Bush signed an intelligence reform law creating a new director of national intelligence who will be Porter Goss' boss once selected. Democratic Senator Rockefeller said the president is taking too long making his choice.

ROCKEFELLER: Two months have now passed since the bill signing ceremony and the position of director of national intelligence remains vacant, not even a person nominated. To me, this is unacceptable.

ENSOR: But the Republican chairman said the decision is too important to be rushed.

SEN. PAT ROBERTS (R), INTELLIGENCE CHAIRMAN: It is, I think, personally important, not only in terms of timing, but to get the right person.

ENSOR: What Goss did not discuss in the open hearing, but what U.S. officials confirm, is that CIA officials are growing uneasy about holding Khalid Sheik Mohammed, Abu Zubaida, Ramzi bin al- Shibh and other top al Qaeda prisoners indefinitely at undisclosed locations overseas.

ENSOR (on camera): Sources say the CIA wants to scale back its role running secret prisons around the world. The question, said one, is what is the end game for these people? A difficult question being quietly posed to the Justice Department and the White House.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

WALLACE: And be sure to stay tuned to CNN all day and all night for the most reliable news about your security.

Turning now to Iraq, there is a leading candidate to become that country's interim prime minister.

Let's get details on that and the work of the Iraqi electoral commission, CNN's senior international correspondent Nic Robertson joining us again from Baghdad.

And, Nic, talk to us a little bit more about this leading candidate, Ibrahim al-Jaafari. What do we know about him?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well he's part of the United Iraqi Alliance. He's the leader of the Al-Daawa Party, which is a Shi'a Islamic party. He lived in exile since 1980. Came back after Saddam Hussein was overthrown. He lived in Iran and London.

It was while he was in London that he was chairman of one of the main opposition groups to Saddam Hussein's rule. And for that reason he is seen as somebody who could unify and bridge gaps and bring people together from all these various parties that are going to make up the new Iraqi National Assembly. And therefore that he would make a good choice, if you will, for prime minister of the country. He is part of the United Iraqi Alliance.

They do owe part of their election success to the Grand Ayatollah Ali al-Sistani, the most respected Shi'a cleric in the country. He was the one that brought this grouping together and encouraged voters to come out, not only to vote, but to vote for this particular grouping -- Kelly.

WALLACE: Nic, Ahmad Chalabi, he is someone who did have ties, of course, to the Bush administration, held in high regard by the Bush administration, then, obviously, lots of questions about him. But it appears he too is possibly a leading candidate. Could that be possible?

ROBERTSON: Well he is another, his party, the Iraqi National Congress, is part of that United Iraqi Alliance. The prime minister's position will come, almost undoubtedly we're told, from that particular group. Ahmad Chalabi could be one of the names in the hat.

There was another name, the Finance Minister, Adel Abdel-Mehdi. He has apparently agreed to withdraw his name so that the party can have a unified position. Ahmad Chalabi's spokespeople keep saying that he is still in the running. They say he still has a lot of support.

What we're hearing from other people is that Ahmad Chalabi is viewed as a divisive figure, as somebody who is not going to pull the government together. Indeed, since he first came back to Iraq, whenever you talk to people on the street here about Ahmad Chalabi, they say that they don't like him, that they don't trust him. They point to allegations of corruption while he was running banks in neighboring Jordan. And therefore he's not seen as the likely winner of this current tussle.

But really there are so many ministry positions up for grabs here, so many deals being made, struck and unstruck, it's very, very difficult to really put a finger on the person who is actually going to win this position in the end -- Kelly.

WALLACE: Nic, thanks so much. And we'll be watching your reports throughout the day as the Iraqi Electoral Commission announcing the final, final results of this Iraqi election.

Nic Robertson reporting for us from Baghdad.

To "The War Room" now and pressing questions about the impact of the Iraq war on global terrorism.

CNN's senior international editor David Clinch joins us live from Atlanta.

David, great to see you, as always.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Good morning, Kelly.

A lot of Bush administration officials in Washington today talking about a lot of international issues, a lot of security threats. Some interesting quotes that I'd like to look at here.

CIA Director Porter Goss, the new CIA director, talking about the connection between Iraq and terrorism saying "Islamic extremists exploiting the Iraqi conflict to recruit new anti-U.S. jihadists.... These jihadists will survive, leave Iraq experienced and focus on acts of urban terrorism."

So connecting the war in Iraq on a breeding ground for terrorism. He wasn't saying breeding ground, but making it absolutely clear that those people fighting the insurgency Iraq will not just stay in Iraq, but they'll spread around the region with one goal, and that's attacking the U.S. So that's interesting.

And then also listening to General Myers, the head of the Joint Chiefs, talking yesterday in Washington, saying when asked if the U.S. military could handle a sudden outbreak of a conflict with Iran or Syria or somewhere else, saying they could handle it. But, -- and his quote -- "the timeliness of our response might not be totally consistent with what the combatant commander wants."

Probably, and we're speculating to a certain extent, which we don't like to do, but certainly talking about the fact that the U.S. military is stretched, very stretched in Iraq, and any sudden conflict with Iran, Syria or North Korea would put pressure on the U.S. military. They could handle it, he says, with the reserves, but certainly not as fast as they would like to be able to handle it.

WALLACE: David, you know going back to your first point, also you have heard critics of this administration talking, saying that they believe the Iraq war could lead to more terrorism. And the president and his top advisers have said that that's not the case.

Looking at what CIA Director Porter Goss said yesterday, is this one of the first times we're hearing this publicly, really, from the administration that what is happening in Iraq could become a haven for terrorists who could go ahead and leave Iraq and flee to other parts of the world?

CLINCH: Right, it's certainly something which the critics have been pointing out is a possibility. And I think to be fair to the CIA director, he was saying that it is a strong possibility that these people fighting the insurgency will spread. But it certainly is beyond doubt that there are a lot of people within Iraq right now who have the capability to attack the American forces there.

And if the American forces leave, certainly is a likelihood, as far as the CIA and apparently the Bush administration is concerned, that they will seek out any American targets they can find in the region and beyond. And they will have been battle hardened by the insurgency in Iraq, so certainly a very deep concern for the CIA.

WALLACE: A lot to cover, David. And of course Defense Secretary Donald Rumsfeld on Capitol Hill again today. We'll be watching.

David Clinch, our CNN senior international editor, thanks so much for being with us.

Moving ahead, hockey fans aren't the only losers when the season is canceled. We'll tell you the dollars and cents of yesterday's decision.

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

(COMMERCIAL BREAK)

WALLACE: Dramatic music for us this morning on DAYBREAK.

Your news, money, weather and sports. It's about 45 minutes after the hour. And here is what's all new this morning.

Defense Secretary Donald Rumsfeld warning that terrorists are regrouping for another strike against the United States. Today, Secretary Rumsfeld goes before the Senate and House committees working on the defense budget.

Senator Arlen Specter of Pennsylvania says he has Hodgkin's Disease, cancer of the lymph nodes. The 75-year-old Specter says he's beaten a brain tumor, heart surgery and tough political opponents, and says he'll keep working while he beats this.

In money, diamonds may be a girl's best friend, but the Internet is sweet on them, too. In the two weeks leading up to Valentine's Day, online diamond sales totaled nearly $4 billion. Up 30 percent over last year.

In sports, Illinois cruised to its 26th win, 83 to 63 over Penn State. It's the longest winning streak in school history. And the Fighting Illini are the only undefeated team left in Division 1.

And weather now, Rob Marciano in for Chad Myers.

Rob, I had to ask my colleagues here about...

MARCIANO: The Fighting Illini.

WALLACE: Yes, exactly.

MARCIANO: All right.

WALLACE: Showing that I'm not quite an expert there.

MARCIANO: No problem there. The state right next door, Indiana, about almost 30 years ago is when they went unbeaten. We'll see if they can match as we go through the season.

(WEATHER REPORT)

Kelly, back over to you.

WALLACE: All right, Rob, check in with you in a few more minutes. News now about J.Lo, she's a no-show. That story topping our "Music Notes" this morning. Don't look for Jennifer Lopez this week in London. The music and movie diva says she's too sick to travel and has called off her European concert tour. She's also missing the British premiere of her movie, "Shall We Dance."

News now about Kid Rock, his arrest record takes a hit. The rap star is now facing assault charges after a scuffle at a Nashville strip club. He's accused of slugging a D.J. because the guy announced it was closing time. Kid Rock, whose real name is Bob Ritchie, is out of jail on a $3,000 bond.

George Michael says he's ending his 20-year music career by explaining himself in an autobiographical film. The singer presented the movie at the Berlin International Film Festival yesterday. He says, as far as he's concerned, the genre that made him a star is now dead and he's ready to move in a new direction.

So forget about the players, what happens to the vendors who rely on hockey season to make ends meet? That story still ahead on DAYBREAK. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: Medical news now. Studies show chronic pain afflicts more than one-third of the U.S. population, and yet the causes of various pains often are misdiagnosed and mistreated.

Senior medical correspondent Dr. Sanjay Gupta has just one example.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Flex your muscle.

SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): From the prick of a needle to a broken bone, physical pain is familiar to all of us. But what happens when pain can't be measured?

ASHLEY TAYLOR, PAIN PATIENT: Walking around is very difficult. And it usually takes just a few minutes before I get very tired and I have to rest. And even when I do rest, I don't feel better.

GUPTA: Since age of 10, Ashley Taylor has felt pain in her neck, shoulders, back, and legs. Now 20-years-old, she's seen neurologists, rheumatologists, even psychiatrists. In all, Ashley has been to more than 20 different doctors in just the past few years.

TAYLOR: The doctors don't know. I have had X-rays done and MRIs and numerous blood tests and a spinal tap, and everything is negative, everything is OK. And no doctor can tell me what's going on.

GUPTA: It's more than discomfort. She takes up to seven pain pills a day, including Celebrex and Vicodin and had to drop out of school last semester. DR. MICHEL DUBOIS, NYU PAIN MANAGEMENT CENTER: A young lady, who obviously you expect to be in perfect health, who is going through a critical time of her life with a major handicap. Our role is to try to help her, going through this phase.

GUPTA: Despite all of the advances of modern medicine, when doctors measure pain, they rely primarily on the verbal analog scale.

DUBOIS: What number would you put to your pain? Zero is no pain and 10 maximum, possible.

TAYLOR: Now it's about six.

GUPTA: A complicated name for a simple test, how much does it hurt on a scale from 0 to 10?

DUBOIS: Since it is a subjective measurement based only of the patient's feedback, you can imagine situations where the patient is not truthful when you repulse his or her pain.

GUPTA: And there are variations. What one person calls a nine could easily be a four for another. While there is no reliable way to gauge honesty in these tests, the pain is very real to patients like Ashley.

TAYLOR: Right now I just have to learn to live with the pain as best as I can, because it's not going away anytime soon.

GUPTA: A somewhat immeasurable price for a frustratingly immeasurable pain.

Dr. Sanjay Gupta, CNN, New York.

(END VIDEOTAPE)

WALLACE: Ahead in the next hour of DAYBREAK, judicial nominees. Sounds boring, but we'll tell you why you should care.

And "Rolling Stone" tells us which acts can afford the most bling-bling. You won't want to miss it.

We'll be right back.

(COMMERCIAL BREAK)

WALLACE: Well with the cancellation of their season, the National Hockey League has a very dubious distinction, it is the only major sports league in North America to lose an entire season due to a labor dispute.

But as CNN's Mary Snow reports, it's not just the players and owners who are left out in the cold.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Sir? They're right -- T-shirt, right down here.

MARY SNOW, CNN CORRESPONDENT (voice-over): Rangers jerseys aren't moving quickly these days at Jerry Cosby's Sporting Goods Store in New York and the aisles have been pretty empty since the NHL lockout.

UNIDENTIFIED MALE: Jersey sales are down. They're probably down around 75 percent.

SNOW: Down, too, are fans.

UNIDENTIFIED MALE: I'm very disappointed. I am a big hockey fan.

UNIDENTIFIED MALE: I think it's most sad for the small business people and the fans.

SNOW: Small businesses, such as InGlasCo in Quebec, the official puck supplier to the NHL. It says it's cut 24 jobs, or 25 percent of its work force, because of the lockout. An estimated $1 billion of sporting good sales have also been hurt.

MIKE MAY, SPORTING GOODS ASSOCIATION: And when the teams aren't playing, the game is out of the minds of the consumer, and, as a result, out of pocket, out of luck, no visibility, no spending.

SNOW: With 30 teams on the sidelines for the season, businesses across the U.S. that rely on fans are hurting, businesses like restaurants near stadiums and parking lots. In Detroit, known as Hockey Town, the regional chamber estimates $153 million in lost revenue.

But it's not just the sales that have been hurt, the NHL commissioner says it's impossible to tell how much damage has been done to the sport.

GARY BETTMAN, NHL COMMISSIONER: We're going to have to earn back the trust and love and affection of everybody who's associated with the game. And so we're going to have to look at a completely different economic model.

(END VIDEOTAPE)

WALLACE: Commissioner Bettman says the owners are planning to have hockey next season, but there is still no resolution to the financial differences that cost them this one.

We've been talking all morning, asking you has greed ruined or affected professional sports? We want to read some more of your e- mails.

We have Roger (ph) from Redding, Pennsylvania. And he says the players have priced me and the majority of average citizens out of the parks. Sports owners need to heed what is happening to the hockey season. Soon no sport will be in reach of the average person to take their family to the game.

And, Rob, one more here. This comes from Diane (ph) in North Carolina. She writes is sports being run by greed, duh! The players' salaries are only surpassed by their ego.

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 February 17, 2005 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KELLY WALLACE, CNN ANCHOR: Good morning, and welcome to the second half-hour of DAYBREAK. From the Time Warner Center in New York, I'm Kelly Wallace, in today for Carol Costello.
"Now in the News."

Defense Secretary Donald Rumsfeld is one of the officials warning that terrorists are getting ready for a new attack on the United States. Secretary Rumsfeld appears today before the House Armed Services Committee to defend the Pentagon's $419 billion budget.

This could be the day the White House announces President Bush's choice for the new post of director of national intelligence. The job was created in an intelligence reform bill the president signed back in December.

Music producer Phil Spector will be in court today in Los Angeles for a hearing regarding his murder case. Spector is accused of killing actress Lana Clarkson in his home two years ago.

What's new with the flu? A new strain called A-California (ph) will be added to the mix for next season's vaccine. The virus is infecting a lot of people around the world this year, causing a higher number of hospitalizations and deaths.

Time to get a check of the forecast. Rob Marciano in again for Chad Myers.

Good morning again -- Rob.

ROB MARCIANO, CNN METEOROLOGIST: Hi, Kelly.

I should have had the cold and flu map up to show you just what you were talking about, which is a lot of the states now reporting a high frequency of cold and flu. And we generally peak out in the middle of February, and that's where we are right now. So a lot of folks sniffling, not feeling all that well.

(WEATHER REPORT)

Kelly, that's the latest from here, back over to you. We'll see you in a bit.

WALLACE: All right, looks like it's pretty nice pretty much across the country.

Thanks -- Rob.

MARCIANO: Not too shabby.

WALLACE: OK, talk to you in a few minutes.

Well it is budget hearing time on Capitol Hill, and this is part of our "Security Watch." CIA Director Porter Goss was there yesterday. The nation's top spymaster warned -- quote -- "it may only be a matter of time before terrorists attack with weapons of mass destruction."

More on Porter Goss' testimony from CNN national security correspondent David Ensor.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): At his first appearance on Capitol Hill as intelligence chief, Porter Goss said the top threat to the nation's national security remains terrorism, causing mass casualties.

PORTER GOSS, CIA DIRECTOR: It may be only a matter of time before al Qaeda or other group attempts to use chemical, biological, radiological or nuclear weapons. We must focus on that.

ENSOR: Russian reports say terrorists may have stolen some nuclear materials in Russia in recent years, leading to concern about a possible dirty radioactive bomb.

SEN. JOHN ROCKEFELLER (D), INTELLIGENCE VICE CHAIRMAN: Can you assure the American people that the material missing from Russian nuclear sites has not found its way into terrorist hands?

GOSS: No, I can't make that assurance.

ENSOR: Homeland Security official James Loy said, though, that the most likely next attack will be a conventional one, along the same lines that troops are facing in Iraq.

ADM. JAMES LOY, DEP. SECRETARY, HOMELAND SECURITY: And we think we are most likely to be attacked with a vehicle-borne improvised explosive device, because that's the weapon of choice around the world.

ENSOR: Goss spoke of evidence both Iran and North Korea are moving ahead with nuclear weapons programs. Reflecting the criticism of the CIA about intelligence prior to the 9/11 attacks and on Iraq's weapons, or lack thereof, before the war, he stressed that the agency is getting more aggressive.

GOSS: Our officers are taking risks. And I will be asking them to take more risks, justifiable risks, because I would be much happier here explaining why we did something than why we did nothing.

ENSOR: On December 17, President Bush signed an intelligence reform law creating a new director of national intelligence who will be Porter Goss' boss once selected. Democratic Senator Rockefeller said the president is taking too long making his choice.

ROCKEFELLER: Two months have now passed since the bill signing ceremony and the position of director of national intelligence remains vacant, not even a person nominated. To me, this is unacceptable.

ENSOR: But the Republican chairman said the decision is too important to be rushed.

SEN. PAT ROBERTS (R), INTELLIGENCE CHAIRMAN: It is, I think, personally important, not only in terms of timing, but to get the right person.

ENSOR: What Goss did not discuss in the open hearing, but what U.S. officials confirm, is that CIA officials are growing uneasy about holding Khalid Sheik Mohammed, Abu Zubaida, Ramzi bin al- Shibh and other top al Qaeda prisoners indefinitely at undisclosed locations overseas.

ENSOR (on camera): Sources say the CIA wants to scale back its role running secret prisons around the world. The question, said one, is what is the end game for these people? A difficult question being quietly posed to the Justice Department and the White House.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

WALLACE: And be sure to stay tuned to CNN all day and all night for the most reliable news about your security.

Turning now to Iraq, there is a leading candidate to become that country's interim prime minister.

Let's get details on that and the work of the Iraqi electoral commission, CNN's senior international correspondent Nic Robertson joining us again from Baghdad.

And, Nic, talk to us a little bit more about this leading candidate, Ibrahim al-Jaafari. What do we know about him?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well he's part of the United Iraqi Alliance. He's the leader of the Al-Daawa Party, which is a Shi'a Islamic party. He lived in exile since 1980. Came back after Saddam Hussein was overthrown. He lived in Iran and London.

It was while he was in London that he was chairman of one of the main opposition groups to Saddam Hussein's rule. And for that reason he is seen as somebody who could unify and bridge gaps and bring people together from all these various parties that are going to make up the new Iraqi National Assembly. And therefore that he would make a good choice, if you will, for prime minister of the country. He is part of the United Iraqi Alliance.

They do owe part of their election success to the Grand Ayatollah Ali al-Sistani, the most respected Shi'a cleric in the country. He was the one that brought this grouping together and encouraged voters to come out, not only to vote, but to vote for this particular grouping -- Kelly.

WALLACE: Nic, Ahmad Chalabi, he is someone who did have ties, of course, to the Bush administration, held in high regard by the Bush administration, then, obviously, lots of questions about him. But it appears he too is possibly a leading candidate. Could that be possible?

ROBERTSON: Well he is another, his party, the Iraqi National Congress, is part of that United Iraqi Alliance. The prime minister's position will come, almost undoubtedly we're told, from that particular group. Ahmad Chalabi could be one of the names in the hat.

There was another name, the Finance Minister, Adel Abdel-Mehdi. He has apparently agreed to withdraw his name so that the party can have a unified position. Ahmad Chalabi's spokespeople keep saying that he is still in the running. They say he still has a lot of support.

What we're hearing from other people is that Ahmad Chalabi is viewed as a divisive figure, as somebody who is not going to pull the government together. Indeed, since he first came back to Iraq, whenever you talk to people on the street here about Ahmad Chalabi, they say that they don't like him, that they don't trust him. They point to allegations of corruption while he was running banks in neighboring Jordan. And therefore he's not seen as the likely winner of this current tussle.

But really there are so many ministry positions up for grabs here, so many deals being made, struck and unstruck, it's very, very difficult to really put a finger on the person who is actually going to win this position in the end -- Kelly.

WALLACE: Nic, thanks so much. And we'll be watching your reports throughout the day as the Iraqi Electoral Commission announcing the final, final results of this Iraqi election.

Nic Robertson reporting for us from Baghdad.

To "The War Room" now and pressing questions about the impact of the Iraq war on global terrorism.

CNN's senior international editor David Clinch joins us live from Atlanta.

David, great to see you, as always.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Good morning, Kelly.

A lot of Bush administration officials in Washington today talking about a lot of international issues, a lot of security threats. Some interesting quotes that I'd like to look at here.

CIA Director Porter Goss, the new CIA director, talking about the connection between Iraq and terrorism saying "Islamic extremists exploiting the Iraqi conflict to recruit new anti-U.S. jihadists.... These jihadists will survive, leave Iraq experienced and focus on acts of urban terrorism."

So connecting the war in Iraq on a breeding ground for terrorism. He wasn't saying breeding ground, but making it absolutely clear that those people fighting the insurgency Iraq will not just stay in Iraq, but they'll spread around the region with one goal, and that's attacking the U.S. So that's interesting.

And then also listening to General Myers, the head of the Joint Chiefs, talking yesterday in Washington, saying when asked if the U.S. military could handle a sudden outbreak of a conflict with Iran or Syria or somewhere else, saying they could handle it. But, -- and his quote -- "the timeliness of our response might not be totally consistent with what the combatant commander wants."

Probably, and we're speculating to a certain extent, which we don't like to do, but certainly talking about the fact that the U.S. military is stretched, very stretched in Iraq, and any sudden conflict with Iran, Syria or North Korea would put pressure on the U.S. military. They could handle it, he says, with the reserves, but certainly not as fast as they would like to be able to handle it.

WALLACE: David, you know going back to your first point, also you have heard critics of this administration talking, saying that they believe the Iraq war could lead to more terrorism. And the president and his top advisers have said that that's not the case.

Looking at what CIA Director Porter Goss said yesterday, is this one of the first times we're hearing this publicly, really, from the administration that what is happening in Iraq could become a haven for terrorists who could go ahead and leave Iraq and flee to other parts of the world?

CLINCH: Right, it's certainly something which the critics have been pointing out is a possibility. And I think to be fair to the CIA director, he was saying that it is a strong possibility that these people fighting the insurgency will spread. But it certainly is beyond doubt that there are a lot of people within Iraq right now who have the capability to attack the American forces there.

And if the American forces leave, certainly is a likelihood, as far as the CIA and apparently the Bush administration is concerned, that they will seek out any American targets they can find in the region and beyond. And they will have been battle hardened by the insurgency in Iraq, so certainly a very deep concern for the CIA.

WALLACE: A lot to cover, David. And of course Defense Secretary Donald Rumsfeld on Capitol Hill again today. We'll be watching.

David Clinch, our CNN senior international editor, thanks so much for being with us.

Moving ahead, hockey fans aren't the only losers when the season is canceled. We'll tell you the dollars and cents of yesterday's decision.

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

(COMMERCIAL BREAK)

WALLACE: Dramatic music for us this morning on DAYBREAK.

Your news, money, weather and sports. It's about 45 minutes after the hour. And here is what's all new this morning.

Defense Secretary Donald Rumsfeld warning that terrorists are regrouping for another strike against the United States. Today, Secretary Rumsfeld goes before the Senate and House committees working on the defense budget.

Senator Arlen Specter of Pennsylvania says he has Hodgkin's Disease, cancer of the lymph nodes. The 75-year-old Specter says he's beaten a brain tumor, heart surgery and tough political opponents, and says he'll keep working while he beats this.

In money, diamonds may be a girl's best friend, but the Internet is sweet on them, too. In the two weeks leading up to Valentine's Day, online diamond sales totaled nearly $4 billion. Up 30 percent over last year.

In sports, Illinois cruised to its 26th win, 83 to 63 over Penn State. It's the longest winning streak in school history. And the Fighting Illini are the only undefeated team left in Division 1.

And weather now, Rob Marciano in for Chad Myers.

Rob, I had to ask my colleagues here about...

MARCIANO: The Fighting Illini.

WALLACE: Yes, exactly.

MARCIANO: All right.

WALLACE: Showing that I'm not quite an expert there.

MARCIANO: No problem there. The state right next door, Indiana, about almost 30 years ago is when they went unbeaten. We'll see if they can match as we go through the season.

(WEATHER REPORT)

Kelly, back over to you.

WALLACE: All right, Rob, check in with you in a few more minutes. News now about J.Lo, she's a no-show. That story topping our "Music Notes" this morning. Don't look for Jennifer Lopez this week in London. The music and movie diva says she's too sick to travel and has called off her European concert tour. She's also missing the British premiere of her movie, "Shall We Dance."

News now about Kid Rock, his arrest record takes a hit. The rap star is now facing assault charges after a scuffle at a Nashville strip club. He's accused of slugging a D.J. because the guy announced it was closing time. Kid Rock, whose real name is Bob Ritchie, is out of jail on a $3,000 bond.

George Michael says he's ending his 20-year music career by explaining himself in an autobiographical film. The singer presented the movie at the Berlin International Film Festival yesterday. He says, as far as he's concerned, the genre that made him a star is now dead and he's ready to move in a new direction.

So forget about the players, what happens to the vendors who rely on hockey season to make ends meet? That story still ahead on DAYBREAK. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: Medical news now. Studies show chronic pain afflicts more than one-third of the U.S. population, and yet the causes of various pains often are misdiagnosed and mistreated.

Senior medical correspondent Dr. Sanjay Gupta has just one example.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Flex your muscle.

SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): From the prick of a needle to a broken bone, physical pain is familiar to all of us. But what happens when pain can't be measured?

ASHLEY TAYLOR, PAIN PATIENT: Walking around is very difficult. And it usually takes just a few minutes before I get very tired and I have to rest. And even when I do rest, I don't feel better.

GUPTA: Since age of 10, Ashley Taylor has felt pain in her neck, shoulders, back, and legs. Now 20-years-old, she's seen neurologists, rheumatologists, even psychiatrists. In all, Ashley has been to more than 20 different doctors in just the past few years.

TAYLOR: The doctors don't know. I have had X-rays done and MRIs and numerous blood tests and a spinal tap, and everything is negative, everything is OK. And no doctor can tell me what's going on.

GUPTA: It's more than discomfort. She takes up to seven pain pills a day, including Celebrex and Vicodin and had to drop out of school last semester. DR. MICHEL DUBOIS, NYU PAIN MANAGEMENT CENTER: A young lady, who obviously you expect to be in perfect health, who is going through a critical time of her life with a major handicap. Our role is to try to help her, going through this phase.

GUPTA: Despite all of the advances of modern medicine, when doctors measure pain, they rely primarily on the verbal analog scale.

DUBOIS: What number would you put to your pain? Zero is no pain and 10 maximum, possible.

TAYLOR: Now it's about six.

GUPTA: A complicated name for a simple test, how much does it hurt on a scale from 0 to 10?

DUBOIS: Since it is a subjective measurement based only of the patient's feedback, you can imagine situations where the patient is not truthful when you repulse his or her pain.

GUPTA: And there are variations. What one person calls a nine could easily be a four for another. While there is no reliable way to gauge honesty in these tests, the pain is very real to patients like Ashley.

TAYLOR: Right now I just have to learn to live with the pain as best as I can, because it's not going away anytime soon.

GUPTA: A somewhat immeasurable price for a frustratingly immeasurable pain.

Dr. Sanjay Gupta, CNN, New York.

(END VIDEOTAPE)

WALLACE: Ahead in the next hour of DAYBREAK, judicial nominees. Sounds boring, but we'll tell you why you should care.

And "Rolling Stone" tells us which acts can afford the most bling-bling. You won't want to miss it.

We'll be right back.

(COMMERCIAL BREAK)

WALLACE: Well with the cancellation of their season, the National Hockey League has a very dubious distinction, it is the only major sports league in North America to lose an entire season due to a labor dispute.

But as CNN's Mary Snow reports, it's not just the players and owners who are left out in the cold.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Sir? They're right -- T-shirt, right down here.

MARY SNOW, CNN CORRESPONDENT (voice-over): Rangers jerseys aren't moving quickly these days at Jerry Cosby's Sporting Goods Store in New York and the aisles have been pretty empty since the NHL lockout.

UNIDENTIFIED MALE: Jersey sales are down. They're probably down around 75 percent.

SNOW: Down, too, are fans.

UNIDENTIFIED MALE: I'm very disappointed. I am a big hockey fan.

UNIDENTIFIED MALE: I think it's most sad for the small business people and the fans.

SNOW: Small businesses, such as InGlasCo in Quebec, the official puck supplier to the NHL. It says it's cut 24 jobs, or 25 percent of its work force, because of the lockout. An estimated $1 billion of sporting good sales have also been hurt.

MIKE MAY, SPORTING GOODS ASSOCIATION: And when the teams aren't playing, the game is out of the minds of the consumer, and, as a result, out of pocket, out of luck, no visibility, no spending.

SNOW: With 30 teams on the sidelines for the season, businesses across the U.S. that rely on fans are hurting, businesses like restaurants near stadiums and parking lots. In Detroit, known as Hockey Town, the regional chamber estimates $153 million in lost revenue.

But it's not just the sales that have been hurt, the NHL commissioner says it's impossible to tell how much damage has been done to the sport.

GARY BETTMAN, NHL COMMISSIONER: We're going to have to earn back the trust and love and affection of everybody who's associated with the game. And so we're going to have to look at a completely different economic model.

(END VIDEOTAPE)

WALLACE: Commissioner Bettman says the owners are planning to have hockey next season, but there is still no resolution to the financial differences that cost them this one.

We've been talking all morning, asking you has greed ruined or affected professional sports? We want to read some more of your e- mails.

We have Roger (ph) from Redding, Pennsylvania. And he says the players have priced me and the majority of average citizens out of the parks. Sports owners need to heed what is happening to the hockey season. Soon no sport will be in reach of the average person to take their family to the game.

And, Rob, one more here. This comes from Diane (ph) in North Carolina. She writes is sports being run by greed, duh! The players' salaries are only surpassed by their ego.

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