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CNN Live At Daybreak

The Life and Death of a Prince; Thousands of Mourners Still Waiting to pay Last Respects to Pope; Pump & Grind

Aired April 06, 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, Monaco in mourning. A small nation remembers a larger-than-life monarch.
Also, the eyes of the world are on Rome as the city prepares for a funeral like no other.

It is Wednesday, April 6th. This is DAYBREAK.

And good morning to you from the Time Warner Center in New York. I'm Carol Costello, along with Chad Myers.

Another story we're working on this morning, the high price of gas in America. How expensive does a fill-up have to get before you change your driving habits?

But first, stories "Now in the News."

He was one of the longest-serving monarchs in the world. Just about five hours ago, Prince Rainier of Monaco died of heart, lung and kidney failure. He was 81 years old. Straight ahead we'll take a look back on his life.

And the lines are stretching for several blocks outside of the Vatican this morning as thousands more people file past the pope's body. In the meantime, Roman Catholics cardinals are planning Friday's funeral. We'll have a live report for you coming up. That's a live picture you're looking at right now.

A major political step in Iraq this morning. About an hour and a half ago the National Assembly elected Kurdish leader Jalal Talabani as president. Lawmakers also picked two vice presidents.

In Kansas, voters have approved a constitutional amendment banning same-sex couples from marrying. Kansas law already bans gay marriage, but supporters of the ban want to bolster it by putting it in the state constitution.

To Atlanta, and the forecast center.

Hello, Chad.

CHAD MYERS, CNN METEOROLOGIST: You're still here, Carol. You came back.

COSTELLO: Yes.

MYERS: Yeah.

(WEATHER REPORT)

COSTELLO: All right. Thank you, Chad.

MYERS: You're welcome.

COSTELLO: Prince Rainier of Monaco had been ill for several weeks, but his death overnight is still somewhat of a shock to many. Americans were introduced to him when he married movie star Grace Kelly and then spirited her away to a life of glamour in Europe. Our Jim Bittermann has more on the life and death of a prince.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT (voice-over): He was one of the longest-serving monarchs of one of the smallest countries in the world. And Prince Rainier III of Monaco deserves most of the credit for putting and keeping his tiny principality on the map.

At first, the dashing young prince used the reflected glamour of the French Riviera to attract growing numbers of tourists to his casinos and hotels. But it was his whirlwind courtship and eventual marriage to American movie actress Grace Kelly that gave Monaco the glittering image that continues to draw the cruise liners full of visitors even today.

CAROLINA PIGOZZI, "PARIS MATCH" MAGAZINE: Princess Grace, you know -- it was (UNINTELLIGIBLE) Jacqueline Kennedy at that time.

BITTERMANN: Prince Rainier, not always comfortable in public, worked behind the scenes to burnish and benefit from Monaco's glittering image. He fought to keep Monaco independent from France and to preserve its status as a tax haven, something that let columnist Art Buchwald to label Monaco a "sunny place for shady people."

Members of the Monaco jet set called Rainier "the builder" for the way he packed the once obscure fishing village Monte Carlo with high-rise apartments to shelter and protect the rich.

UNIDENTIFIED FEMALE: Monaco and southern France are in shock after the surprise announcement of the death of Princess Grace.

BITTERMANN: But that focus on the family turned tragic in 1982, when Monaco's magic came to an end for Prince Rainier. The car carrying his princess plummeted off one of the country's winding roads, and the next day she was dead.

There was shock and sorrow around the world, but no more so than in the royal family itself. At the funeral, Prince Rainier repeatedly broke down in tears. The loss of Princess Grace, the pillar of the family, had a great impact on him. And many said the children, too.

Caroline and Stephanie were soon making the covers of all the gossip magazines. Their lives rich with scandalous behavior and tragic affairs. Prince Albert now takes power in Monaco. But because he has no children, it seems certain that the line of succession will pass to his sister Caroline and her children.

But the real question is not the succession, but whether Monaco itself can prosper in the same way it did under Prince Rainier, the shy man who fought during more than a half century in power to turn an undistinguished family fiefdom into a capital of fantasy, wealth and glamour.

Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

COSTELLO: And as the world reflects on the passing of a monarch, I'll be joined later this hour by a royal historian. That's in the next half-hour of DAYBREAK.

Plans for the pope's funeral and for the future of the Roman Catholic Church, they're in the works. Here's the latest for you.

The church's cardinals meet again today and may decide when to start their conclave, the session in which they'll choose the next pope. Also, massive security preparations. All the security heads in Rome are meeting to get ready for Friday's funeral. And they're bracing for a flood of foreign leaders, including President Bush. He leaves later today for Rome. Joining him on Air Force One, former presidents Bush and Clinton.

Now let's head straight to Vatican City. CNN's Diana Muriel is live in St. Peter's Square.

Hello, Diana.

DIANA MURIEL, CNN CORRESPONDENT: Carol, it's a huge scene, a huge mass of people here at -- in the queue for the Basilica of St. Peter's, a repeat of what we saw yesterday. But the numbers are increasing.

More and more roads in the city of Rome have been closed off by the authorities. The crew, myself, my producer, we had to make our own way here on foot. It's just impossible to get anywhere near the center of town. And the traffic, as you can imagine, which even on a good day is pretty difficult in Rome, is just appalling this day.

The pedestrians are also being shepherded to particular routes. They can't cross, for example, in front of the basilica here. They have to take a series of routes to get into the queues, which are now miles long.

And yesterday, when I was speaking to people who were in the queues in the day, some people had been waiting for as much as eight hours. And then it would be a further three hours from the front of the queue to actually make the last section of it and into the basilica itself. But they had just a few minutes, or even less than a minute to file past the body of Pope John Paul II lying in state there. The queues are expected to get worse during the course of the day. It's starting to get hot. The authorities are already starting to stockpile water to be handed out to the crowd. But we noticed at the end of the -- towards the end of the day yesterday that many, many people were just simply coming out of the crowd exhausted.

There were problems with children, problems with elderly people who just could not take anymore of the queue. The waiting was just so long. And they're standing on cobbled streets, and the heat building during the course of the day. And for many people it's just really too much.

But having said that, still they come. There are more and more trains being laid on to come here into Rome. Bus services, free shuttle buses to take people from the train stations to Warden Center (ph), where they then join the queues. And also, other buses to take them out to various campsites and dormitories which the authorities here have established. And they're expected something in the reach of two million people -- Carol.

COSTELLO: Diana Muriel, live from Rome this morning. Thank you.

Foreign dignitaries are scheduled to start arriving in Rome today. They will be taken for a private viewing of the pope at St. Peter's Basilica. German Chancellor Gerhard Schroeder is among the many world leaders to attend the pope's funeral. He signed the pope's condolence book in Berlin. You're seeing it there.

The man who shot the pope in 1981 wrote this letter asking to attend the funeral. But Turkish authorities say Mehmet Ali Agca will not be allowed to attend.

The pope forgave Agca after meeting him in an Italian prison in 1983. He served 20 years for the assassination attempt, but is now in a Turkish prison for unrelated crimes.

Perhaps you've already heard "World News Tonight" anchor Peter Jennings has lung cancer. He's scheduled to begin chemotherapy on Monday. Jennings told his viewers last night about the diagnosis on the ABC News program.

(BEGIN VIDEO CLIP)

PETER JENNINGS, ABC NEWS: I've been reminding my colleagues today, who've all been incredibly supportive, that almost 10 million Americans are already living with cancer. And I have a lot to learn from them. And "living" is the key word. The National Cancer Institute says that we are survivors from the moment of diagnosis.

(END VIDEO CLIP)

COSTELLO: Peter Jennings was actually supposed to do the whole broadcast last night, but his voice didn't hold out. We'll hear more of what the long-time news anchor has to say about his lung cancer later this hour. And Nobel Prize-winning author Saul Bellow has died at his Massachusetts home. His works include "Herzog," "Humboldt's Gift" and "Seize the Day." Bellow was the most acclaimed among a generation of Jewish writers who emerged after World War II. Saul Bellow was 89 years old.

All right. Let's talk about something else, gas prices. As if you didn't know already, gas prices are at record-high levels. But, do you know why?

Our Chris Huntington brings us that.

(BEGIN VIDEOTAPE)

CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): Call it the pump and grind, your teeth, that is. According to the Department of Energy, the national average price for unleaded regular gasoline is now $2.22 a gallon, an all-time high. And that tab is almost certain to move high over the next month, as the record prices set this week in the wholesale gasoline market filter down to a station near you.

The biggest factor is that American drivers show no sign of changing the way they drive. Demand for gasoline this summer is projected to increase even more than it did last year.

EVARISTO STANZIALE, OIL AND GAS TRADER: No one's really going to change their habits, as far as their driving habits. That extra 25 cents is -- you know, apparently, is not meaningful enough where they're going to all of a sudden say, hey, you know, I'm going to start commuting with three or four of my buddies as I drive into work. You know, the average person wants to be by himself, drinking his cup of coffee.

HUNTINGTON: The cost of crude oil, which accounts for more than half of the retail price of a gallon of gas, has jumped almost 50 percent in the last year, due to sharply-growing demand in the United States, China and India. The big concern in the oil market is that growing demand could outpace supply.

GEORGE ORWEL, ENERGY INTELLIGENCE GROUP: Basically, there's a lot of physical crude around, but what is driving the market is not the presence or the availability of physical crude. It is the fear that, in the future, perhaps in the summer, we're not likely to have enough.

BURNS: Energy market analysts point out that U.S. refineries are operating at full tilt. In fact, the United States already imports about 10 percent of the gasoline it uses domestically.

One other factor pushing oil and gas prices higher, the energy markets are now the hottest on Wall Street. And there are a lot of sophisticated investors and brokerage firms who in the past might have been in other markets, now betting that supply concerns will drive energy prices even higher.

Chris Huntington, CNN, New York. (END VIDEOTAPE)

COSTELLO: Alan Greenspan is also weighing in. He says these high oil and gas prices are straining the energy markets. No kidding.

He even talked about the "H" word. You know, hybrid cars, something Detroit doesn't seem all that keen on.

(BEGIN VIDEO CLIP)

ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: Of critical importance will be the extent to which the more than 200 million light vehicles on U.S. highways, which consume 11 percent of total world oil production, become more fuel efficient as vehicle buyers choose the lower fuel costs of lighter or hybrid vehicles.

(END VIDEO CLIP)

COSTELLO: Well, Chad, we thought our e-mail question should concern gas prices this morning.

MYERS: It hurts already, Carol. How high do gas prices need to go for you to change your driving habits? $39.51, Carol -- you know the size of my little car? That's how much it cost me to fill it up yesterday.

COSTELLO: Oh, it's crazy.

MYERS: Oh.

COSTELLO: But, you know, Americans so love their cars. And they're so resistant to change. I just can't see that day coming anytime soon.

MYERS: Well, you have to get to work.

COSTELLO: Well, but, I mean, you could drive hybrid cars, you could carpool, you could do so many other things. You could take public transit, you could walk, you could ride your bike. But Americans love to drive.

MYERS: I'm going to carpool at 2:30 in the morning?

COSTELLO: Oh, come on. Not you. But others don't work a crazy shift.

MYERS: Well, OK. You can't say that, "not me." That's what everybody's saying.

COSTELLO: You're right about that.

MYERS: You have to make sure there's the right amount of air in your tires. And there's so many things you can do to get one or two more miles per gallon. We'll go through some of those maybe hidden ones that maybe you didn't think of.

COSTELLO: See, there are all sorts of things that we Americans can do but don't. So DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.

Coming up on DAYBREAK, Iraq's National Assembly has made some progress, picked a president. We'll tell you who straight ahead.

And as the cardinals make final arrangements for the pope's funeral, a secret addition to the group may be revealed.

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

(COMMERCIAL BREAK)

COSTELLO: The international markets all looking higher this morning. Tokyo's Nikkei up nearly 53 points. The London FTSE up, oh, just over four. And the German DAX is higher by 13.

Your news, money, weather and sports. It's 5:17 Eastern. Here's what's all new this morning.

More than one million mourners have passed by the body of the pope in St. Peter's Basilica. The College of Cardinals are -- is meeting at this hour to finalize funeral arrangements and to possibly pick a date for their conclave.

Monaco's Prince Rainier died this morning. He was 81 and was Europe's longest-reigning monarch. He had been in the hospital for the last month with heart, lung and kidney problems. The prince may be best known in the United States for his marriage to movie star Grace Kelly in 1956.

In money news, General Motors hopes that giving away cars will hope boost sales. Its so-called Hot Button promotion gives you a chance to win one of 1,000 cars. GM hopes the promotion will bring more of you into the dealership.

In culture, Clint Eastwood is hoping to begin filming his tribute to American soldiers in Iwo Jima later this year. He's in Tokyo to talk to government officials about the project but has not asked permission to film on the island.

In sports, Baylor's Lady Bears have won their first national championship. They beat Michigan State 84-62 in the NCAA women's basketball tournament. Coach Kim Mulkey-Robertson becomes the first woman to play on and coach a national championship team -- Chad.

MYERS: Carol, you know what that means? That means Michigan State was in the men's final and the women's final and lost both games.

COSTELLO: Oh, it's a sad day in Michigan.

MYERS: Oh, those poor Sparties.

COSTELLO: But you know what?

MYERS: At least they got there. COSTELLO: The Detroit Tigers won their home opener 11-2.

MYERS: Oh, my gosh. Call me a cab.

(LAUGHTER)

(WEATHER REPORT)

COSTELLO: Literally, people are dancing in the streets because of that forecast, Chad.

MYERS: Yes. It doesn't take much for you guys to dance in the streets.

COSTELLO: Yes, you're right about that.

MYERS: Yes.

(CROSSTALK)

COSTELLO: We are following a major new development out of Iraq this morning. We have to tell you about that.

The budding democratic nation now has a new president. Let's head straight to Baghdad and CNN's Aneesh Raman. He's going to tell us all about it.

Hello, Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Carol, good morning to you.

After weeks of political wrangling, and days after they elected a speaker, the National Assembly, just a few hours ago, voting Jalal Talabani into the presidency. They also voted on two deputy presidents. Ghazi al-Yawar, a Sunni, getting one of those posts. Shia Adel Abd al-Mahdi getting the other.

This was a very poignant political moment, Carol. Talabani, a man who literally fought Saddam Hussein for years, the leader of the people that were brutally oppressed by the former regime, taking the office that Saddam Hussein himself still claims to hold by title.

Now, we don't know when the three men will be sworn in. It could be as early as today, perhaps as late as tomorrow. But when they do, the TAL, the transitional law, gives them two weeks to name a prime minister and the full cabinet. We expect perhaps the prime minister, Ibrahim al-Jaafari, to be named tomorrow. We're waiting for the cabinet -- Carol.

COSTELLO: I know this whole process is being shown on television. And there are reports that Saddam Hussein has access to a TV and may be watching this morning's proceedings.

Any word on that?

RAMAN: That's right, Carol. For almost two years now, Saddam Hussein has been a virtual information blackout.

We spoke to the human rights minister, Bakhtiar Amin, yesterday. He said that the government would be making available this event to not only Saddam, but 10 other high-ranking officials of his regime. We don't know yet whether they chose to watch it, but really that showed confidence from this government that this is, in fact, now a permanent process, and that this country will remain on the path towards democracy -- Carol.

COSTELLO: Aneesh Raman live in Baghdad this morning. Thank you.

One of the longest-serving monarchs in the world is dead. A look back on the life of Monaco's Prince Rainier coming up.

Also, do the pope's final papers reveal a secret? We'll explain in a live report for you.

You are watching DAYBREAK for Wednesday, April 6th.

(COMMERCIAL BREAK)

COSTELLO: Tell me again how warm it's going to be in New York City today.

MYERS: 72 -- 72, Carol. It's going to feel like spring. And the cherry blossoms doing so well now in Washington, D.C. They were really very closed for a while.

Started to open up yesterday. It looks like tomorrow and even for the weekend will be the peak. So there you go.

COSTELLO: I know. On the front page of "The Washington Post" they showed just a few blossoms opened. And they look beautiful already.

MYERS: Yes. Yes, they've really done a great job. And you know what? There was enough water, enough rain over the winter, that this is going to be a really great season for those blossoms.

COSTELLO: Oh, I'm going. You know I'm going. I always go to see them.

MYERS: And you know what? You're probably going to drive, and you're going to spend gas, aren't you?

COSTELLO: No, I am taking the train. I take -- I never drive anymore.

MYERS: Well, good for you.

COSTELLO: Ha ha.

MYERS: Good for you.

COSTELLO: Time for some late night...

MYERS: Pick one of those diesel buses.

COSTELLO: Time for some "Late Night Laughs" right now, Chad.

David Letterman poking fun at not just the current president, but the former one as well. Here he is.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, TALK SHOW HOST: How about President Bush? You folks been enjoying the new relaxed President Bush? Have you noticed that he's -- he's more relaxed? And they say the reason that President George Bush is more relaxed is every afternoon he gets a full body massage.

(LAUGHTER)

Yes. The afternoon massage takes the place of the old Bush method, vodka.

(APPLAUSE)

That was -- but I was thinking about this, a full body massage in the afternoon. Isn't that what got the last guy impeached?

(END VIDEO CLIP)

COSTELLO: No, I think that was only a massage on part of his body.

MYERS: Something different than that.

COSTELLO: Hi, Chad. Are you ready for our DAYBREAK "Eye Openers?"

MYERS: Well, I hear your computer isn't working up there. So that's why I've been printing up my e-mails here.

COSTELLO: OK. So you're busy.

MYERS: So I've been working hard on them, Carol, trying to keep this show rolling.

COSTELLO: All right. Well, you continue to work on those e- mails. And I'm going to read the DAYBREAK "Eye Openers." OK?

MYERS: All right.

COSTELLO: OK.

Much of Juno Beach in Florida is closed due to a swarm of sharks. Take a look at this, Chad. I know you're working, but take a look at it anyway.

MYERS: Shark. Shark. Shark.

COSTELLO: Yes, those things that look like tadpoles are actually sharks. Experts say this is an annual occurrence on the Atlantic Ocean side of the state. The spinner and black tip sharks have moved into shallower water to feed on small fish.

MYERS: Fins to the left of me, fins to the right.

COSTELLO: And sharp ones, too.

This little beaver caused its share of trouble in one Bangor, Maine, neighborhood. Look at him. It seems he wandered out of his stream to find a new home. I guess the town homes in the area looked like a pretty good starting place.

MYERS: Sure. Sure.

COSTELLO: But the beaver was finally lassoed. They're going to get him. They're going to get him.

MYERS: Oh, look out!

COSTELLO: He's a feisty beaver.

MYERS: The animal control people were in my neighborhood yesterday, Carol. They were looking for a possum. A possum? There are possum everywhere. How are you going to catch those?

COSTELLO: Oh. Look, they're taking that beaver back in the woods.

MYERS: They're putting him back in his river.

COSTELLO: There.

MYERS: Yes, about 100 feet from where he started.

COSTELLO: Like he won't wander back.

Wanda and Winky are headed west.

MYERS: Oh, yes, to the old folks' home.

COSTELLO: Exactly. Two aging elephants are on their way from the Detroit Zoo to a special sanctuary, or old folks' home for elephants in Sacramento. The 2,300-mile journey should take more than two days. They were loaded into a specially-fitted tractor trailer for the trip. That's a big tractor trailer.

MYERS: I wonder if they get big Depends.

COSTELLO: Oh, jeez, Chad. This show is like going to drive off the edge of a cliff soon.

OK. Now it's time to read some e-mail, Chad. And I know you've been working. And our topic this morning are the rising gas prices.

And we were wondering, how high do gas prices need to go for you to change your driving habits? MYERS: I believe the pain is already here for a lot of folks. And a lot of folks drive a long way.

I heard the other day the average commute is 41 minutes each way. So you've got to figure a mile a minute. That's 41 miles, or maybe a little bit less. But still, you're getting that kind of miles per gallon.

That's two gallons each direction. That's a $5 commute each way. Ten bucks just to get there and back from work.

Mark from Rockford, Illinois, says he's going to start driving his Harley no matter how cold it gets. "My SUV gets 18 miles a gallon, my Harley gets 40. Do the math. I can't afford to drive that SUV anymore."

And I think a lot of folks are seeing the same thing. No matter what the rebates are, no matter how high GM, Ford and DaimlerChrysler can get those rebates on those big SUVs, they just seem to be sitting there on the lot.

From Jack in Greensboro, "The higher cost of gasoline will not deter people to drive. It is a fixed cost. Yet it will force people to do other things, maybe buy a little less food. Generic brands, maybe, or quit the gym."

Maybe you should keep the gym and maybe walk to work, or something like that. I don't know. Whatever.

COSTELLO: It would be a good idea.

MYERS: Yes.

COSTELLO: All right. Well get to more e-mails a little later.

MYERS: OK.

COSTELLO: Coming up in the next half-hour on DAYBREAK, an unsolved mystery may be revealed soon. Who is the pope's secret cardinal?

Plus, his voice is raspy, but his attitude is upbeat. We'll hear more from Peter Jennings about his battle with lung cancer.

(COMMERCIAL BREAK)

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Aired April 6, 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, Monaco in mourning. A small nation remembers a larger-than-life monarch.
Also, the eyes of the world are on Rome as the city prepares for a funeral like no other.

It is Wednesday, April 6th. This is DAYBREAK.

And good morning to you from the Time Warner Center in New York. I'm Carol Costello, along with Chad Myers.

Another story we're working on this morning, the high price of gas in America. How expensive does a fill-up have to get before you change your driving habits?

But first, stories "Now in the News."

He was one of the longest-serving monarchs in the world. Just about five hours ago, Prince Rainier of Monaco died of heart, lung and kidney failure. He was 81 years old. Straight ahead we'll take a look back on his life.

And the lines are stretching for several blocks outside of the Vatican this morning as thousands more people file past the pope's body. In the meantime, Roman Catholics cardinals are planning Friday's funeral. We'll have a live report for you coming up. That's a live picture you're looking at right now.

A major political step in Iraq this morning. About an hour and a half ago the National Assembly elected Kurdish leader Jalal Talabani as president. Lawmakers also picked two vice presidents.

In Kansas, voters have approved a constitutional amendment banning same-sex couples from marrying. Kansas law already bans gay marriage, but supporters of the ban want to bolster it by putting it in the state constitution.

To Atlanta, and the forecast center.

Hello, Chad.

CHAD MYERS, CNN METEOROLOGIST: You're still here, Carol. You came back.

COSTELLO: Yes.

MYERS: Yeah.

(WEATHER REPORT)

COSTELLO: All right. Thank you, Chad.

MYERS: You're welcome.

COSTELLO: Prince Rainier of Monaco had been ill for several weeks, but his death overnight is still somewhat of a shock to many. Americans were introduced to him when he married movie star Grace Kelly and then spirited her away to a life of glamour in Europe. Our Jim Bittermann has more on the life and death of a prince.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT (voice-over): He was one of the longest-serving monarchs of one of the smallest countries in the world. And Prince Rainier III of Monaco deserves most of the credit for putting and keeping his tiny principality on the map.

At first, the dashing young prince used the reflected glamour of the French Riviera to attract growing numbers of tourists to his casinos and hotels. But it was his whirlwind courtship and eventual marriage to American movie actress Grace Kelly that gave Monaco the glittering image that continues to draw the cruise liners full of visitors even today.

CAROLINA PIGOZZI, "PARIS MATCH" MAGAZINE: Princess Grace, you know -- it was (UNINTELLIGIBLE) Jacqueline Kennedy at that time.

BITTERMANN: Prince Rainier, not always comfortable in public, worked behind the scenes to burnish and benefit from Monaco's glittering image. He fought to keep Monaco independent from France and to preserve its status as a tax haven, something that let columnist Art Buchwald to label Monaco a "sunny place for shady people."

Members of the Monaco jet set called Rainier "the builder" for the way he packed the once obscure fishing village Monte Carlo with high-rise apartments to shelter and protect the rich.

UNIDENTIFIED FEMALE: Monaco and southern France are in shock after the surprise announcement of the death of Princess Grace.

BITTERMANN: But that focus on the family turned tragic in 1982, when Monaco's magic came to an end for Prince Rainier. The car carrying his princess plummeted off one of the country's winding roads, and the next day she was dead.

There was shock and sorrow around the world, but no more so than in the royal family itself. At the funeral, Prince Rainier repeatedly broke down in tears. The loss of Princess Grace, the pillar of the family, had a great impact on him. And many said the children, too.

Caroline and Stephanie were soon making the covers of all the gossip magazines. Their lives rich with scandalous behavior and tragic affairs. Prince Albert now takes power in Monaco. But because he has no children, it seems certain that the line of succession will pass to his sister Caroline and her children.

But the real question is not the succession, but whether Monaco itself can prosper in the same way it did under Prince Rainier, the shy man who fought during more than a half century in power to turn an undistinguished family fiefdom into a capital of fantasy, wealth and glamour.

Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

COSTELLO: And as the world reflects on the passing of a monarch, I'll be joined later this hour by a royal historian. That's in the next half-hour of DAYBREAK.

Plans for the pope's funeral and for the future of the Roman Catholic Church, they're in the works. Here's the latest for you.

The church's cardinals meet again today and may decide when to start their conclave, the session in which they'll choose the next pope. Also, massive security preparations. All the security heads in Rome are meeting to get ready for Friday's funeral. And they're bracing for a flood of foreign leaders, including President Bush. He leaves later today for Rome. Joining him on Air Force One, former presidents Bush and Clinton.

Now let's head straight to Vatican City. CNN's Diana Muriel is live in St. Peter's Square.

Hello, Diana.

DIANA MURIEL, CNN CORRESPONDENT: Carol, it's a huge scene, a huge mass of people here at -- in the queue for the Basilica of St. Peter's, a repeat of what we saw yesterday. But the numbers are increasing.

More and more roads in the city of Rome have been closed off by the authorities. The crew, myself, my producer, we had to make our own way here on foot. It's just impossible to get anywhere near the center of town. And the traffic, as you can imagine, which even on a good day is pretty difficult in Rome, is just appalling this day.

The pedestrians are also being shepherded to particular routes. They can't cross, for example, in front of the basilica here. They have to take a series of routes to get into the queues, which are now miles long.

And yesterday, when I was speaking to people who were in the queues in the day, some people had been waiting for as much as eight hours. And then it would be a further three hours from the front of the queue to actually make the last section of it and into the basilica itself. But they had just a few minutes, or even less than a minute to file past the body of Pope John Paul II lying in state there. The queues are expected to get worse during the course of the day. It's starting to get hot. The authorities are already starting to stockpile water to be handed out to the crowd. But we noticed at the end of the -- towards the end of the day yesterday that many, many people were just simply coming out of the crowd exhausted.

There were problems with children, problems with elderly people who just could not take anymore of the queue. The waiting was just so long. And they're standing on cobbled streets, and the heat building during the course of the day. And for many people it's just really too much.

But having said that, still they come. There are more and more trains being laid on to come here into Rome. Bus services, free shuttle buses to take people from the train stations to Warden Center (ph), where they then join the queues. And also, other buses to take them out to various campsites and dormitories which the authorities here have established. And they're expected something in the reach of two million people -- Carol.

COSTELLO: Diana Muriel, live from Rome this morning. Thank you.

Foreign dignitaries are scheduled to start arriving in Rome today. They will be taken for a private viewing of the pope at St. Peter's Basilica. German Chancellor Gerhard Schroeder is among the many world leaders to attend the pope's funeral. He signed the pope's condolence book in Berlin. You're seeing it there.

The man who shot the pope in 1981 wrote this letter asking to attend the funeral. But Turkish authorities say Mehmet Ali Agca will not be allowed to attend.

The pope forgave Agca after meeting him in an Italian prison in 1983. He served 20 years for the assassination attempt, but is now in a Turkish prison for unrelated crimes.

Perhaps you've already heard "World News Tonight" anchor Peter Jennings has lung cancer. He's scheduled to begin chemotherapy on Monday. Jennings told his viewers last night about the diagnosis on the ABC News program.

(BEGIN VIDEO CLIP)

PETER JENNINGS, ABC NEWS: I've been reminding my colleagues today, who've all been incredibly supportive, that almost 10 million Americans are already living with cancer. And I have a lot to learn from them. And "living" is the key word. The National Cancer Institute says that we are survivors from the moment of diagnosis.

(END VIDEO CLIP)

COSTELLO: Peter Jennings was actually supposed to do the whole broadcast last night, but his voice didn't hold out. We'll hear more of what the long-time news anchor has to say about his lung cancer later this hour. And Nobel Prize-winning author Saul Bellow has died at his Massachusetts home. His works include "Herzog," "Humboldt's Gift" and "Seize the Day." Bellow was the most acclaimed among a generation of Jewish writers who emerged after World War II. Saul Bellow was 89 years old.

All right. Let's talk about something else, gas prices. As if you didn't know already, gas prices are at record-high levels. But, do you know why?

Our Chris Huntington brings us that.

(BEGIN VIDEOTAPE)

CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): Call it the pump and grind, your teeth, that is. According to the Department of Energy, the national average price for unleaded regular gasoline is now $2.22 a gallon, an all-time high. And that tab is almost certain to move high over the next month, as the record prices set this week in the wholesale gasoline market filter down to a station near you.

The biggest factor is that American drivers show no sign of changing the way they drive. Demand for gasoline this summer is projected to increase even more than it did last year.

EVARISTO STANZIALE, OIL AND GAS TRADER: No one's really going to change their habits, as far as their driving habits. That extra 25 cents is -- you know, apparently, is not meaningful enough where they're going to all of a sudden say, hey, you know, I'm going to start commuting with three or four of my buddies as I drive into work. You know, the average person wants to be by himself, drinking his cup of coffee.

HUNTINGTON: The cost of crude oil, which accounts for more than half of the retail price of a gallon of gas, has jumped almost 50 percent in the last year, due to sharply-growing demand in the United States, China and India. The big concern in the oil market is that growing demand could outpace supply.

GEORGE ORWEL, ENERGY INTELLIGENCE GROUP: Basically, there's a lot of physical crude around, but what is driving the market is not the presence or the availability of physical crude. It is the fear that, in the future, perhaps in the summer, we're not likely to have enough.

BURNS: Energy market analysts point out that U.S. refineries are operating at full tilt. In fact, the United States already imports about 10 percent of the gasoline it uses domestically.

One other factor pushing oil and gas prices higher, the energy markets are now the hottest on Wall Street. And there are a lot of sophisticated investors and brokerage firms who in the past might have been in other markets, now betting that supply concerns will drive energy prices even higher.

Chris Huntington, CNN, New York. (END VIDEOTAPE)

COSTELLO: Alan Greenspan is also weighing in. He says these high oil and gas prices are straining the energy markets. No kidding.

He even talked about the "H" word. You know, hybrid cars, something Detroit doesn't seem all that keen on.

(BEGIN VIDEO CLIP)

ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: Of critical importance will be the extent to which the more than 200 million light vehicles on U.S. highways, which consume 11 percent of total world oil production, become more fuel efficient as vehicle buyers choose the lower fuel costs of lighter or hybrid vehicles.

(END VIDEO CLIP)

COSTELLO: Well, Chad, we thought our e-mail question should concern gas prices this morning.

MYERS: It hurts already, Carol. How high do gas prices need to go for you to change your driving habits? $39.51, Carol -- you know the size of my little car? That's how much it cost me to fill it up yesterday.

COSTELLO: Oh, it's crazy.

MYERS: Oh.

COSTELLO: But, you know, Americans so love their cars. And they're so resistant to change. I just can't see that day coming anytime soon.

MYERS: Well, you have to get to work.

COSTELLO: Well, but, I mean, you could drive hybrid cars, you could carpool, you could do so many other things. You could take public transit, you could walk, you could ride your bike. But Americans love to drive.

MYERS: I'm going to carpool at 2:30 in the morning?

COSTELLO: Oh, come on. Not you. But others don't work a crazy shift.

MYERS: Well, OK. You can't say that, "not me." That's what everybody's saying.

COSTELLO: You're right about that.

MYERS: You have to make sure there's the right amount of air in your tires. And there's so many things you can do to get one or two more miles per gallon. We'll go through some of those maybe hidden ones that maybe you didn't think of.

COSTELLO: See, there are all sorts of things that we Americans can do but don't. So DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.

Coming up on DAYBREAK, Iraq's National Assembly has made some progress, picked a president. We'll tell you who straight ahead.

And as the cardinals make final arrangements for the pope's funeral, a secret addition to the group may be revealed.

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

(COMMERCIAL BREAK)

COSTELLO: The international markets all looking higher this morning. Tokyo's Nikkei up nearly 53 points. The London FTSE up, oh, just over four. And the German DAX is higher by 13.

Your news, money, weather and sports. It's 5:17 Eastern. Here's what's all new this morning.

More than one million mourners have passed by the body of the pope in St. Peter's Basilica. The College of Cardinals are -- is meeting at this hour to finalize funeral arrangements and to possibly pick a date for their conclave.

Monaco's Prince Rainier died this morning. He was 81 and was Europe's longest-reigning monarch. He had been in the hospital for the last month with heart, lung and kidney problems. The prince may be best known in the United States for his marriage to movie star Grace Kelly in 1956.

In money news, General Motors hopes that giving away cars will hope boost sales. Its so-called Hot Button promotion gives you a chance to win one of 1,000 cars. GM hopes the promotion will bring more of you into the dealership.

In culture, Clint Eastwood is hoping to begin filming his tribute to American soldiers in Iwo Jima later this year. He's in Tokyo to talk to government officials about the project but has not asked permission to film on the island.

In sports, Baylor's Lady Bears have won their first national championship. They beat Michigan State 84-62 in the NCAA women's basketball tournament. Coach Kim Mulkey-Robertson becomes the first woman to play on and coach a national championship team -- Chad.

MYERS: Carol, you know what that means? That means Michigan State was in the men's final and the women's final and lost both games.

COSTELLO: Oh, it's a sad day in Michigan.

MYERS: Oh, those poor Sparties.

COSTELLO: But you know what?

MYERS: At least they got there. COSTELLO: The Detroit Tigers won their home opener 11-2.

MYERS: Oh, my gosh. Call me a cab.

(LAUGHTER)

(WEATHER REPORT)

COSTELLO: Literally, people are dancing in the streets because of that forecast, Chad.

MYERS: Yes. It doesn't take much for you guys to dance in the streets.

COSTELLO: Yes, you're right about that.

MYERS: Yes.

(CROSSTALK)

COSTELLO: We are following a major new development out of Iraq this morning. We have to tell you about that.

The budding democratic nation now has a new president. Let's head straight to Baghdad and CNN's Aneesh Raman. He's going to tell us all about it.

Hello, Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Carol, good morning to you.

After weeks of political wrangling, and days after they elected a speaker, the National Assembly, just a few hours ago, voting Jalal Talabani into the presidency. They also voted on two deputy presidents. Ghazi al-Yawar, a Sunni, getting one of those posts. Shia Adel Abd al-Mahdi getting the other.

This was a very poignant political moment, Carol. Talabani, a man who literally fought Saddam Hussein for years, the leader of the people that were brutally oppressed by the former regime, taking the office that Saddam Hussein himself still claims to hold by title.

Now, we don't know when the three men will be sworn in. It could be as early as today, perhaps as late as tomorrow. But when they do, the TAL, the transitional law, gives them two weeks to name a prime minister and the full cabinet. We expect perhaps the prime minister, Ibrahim al-Jaafari, to be named tomorrow. We're waiting for the cabinet -- Carol.

COSTELLO: I know this whole process is being shown on television. And there are reports that Saddam Hussein has access to a TV and may be watching this morning's proceedings.

Any word on that?

RAMAN: That's right, Carol. For almost two years now, Saddam Hussein has been a virtual information blackout.

We spoke to the human rights minister, Bakhtiar Amin, yesterday. He said that the government would be making available this event to not only Saddam, but 10 other high-ranking officials of his regime. We don't know yet whether they chose to watch it, but really that showed confidence from this government that this is, in fact, now a permanent process, and that this country will remain on the path towards democracy -- Carol.

COSTELLO: Aneesh Raman live in Baghdad this morning. Thank you.

One of the longest-serving monarchs in the world is dead. A look back on the life of Monaco's Prince Rainier coming up.

Also, do the pope's final papers reveal a secret? We'll explain in a live report for you.

You are watching DAYBREAK for Wednesday, April 6th.

(COMMERCIAL BREAK)

COSTELLO: Tell me again how warm it's going to be in New York City today.

MYERS: 72 -- 72, Carol. It's going to feel like spring. And the cherry blossoms doing so well now in Washington, D.C. They were really very closed for a while.

Started to open up yesterday. It looks like tomorrow and even for the weekend will be the peak. So there you go.

COSTELLO: I know. On the front page of "The Washington Post" they showed just a few blossoms opened. And they look beautiful already.

MYERS: Yes. Yes, they've really done a great job. And you know what? There was enough water, enough rain over the winter, that this is going to be a really great season for those blossoms.

COSTELLO: Oh, I'm going. You know I'm going. I always go to see them.

MYERS: And you know what? You're probably going to drive, and you're going to spend gas, aren't you?

COSTELLO: No, I am taking the train. I take -- I never drive anymore.

MYERS: Well, good for you.

COSTELLO: Ha ha.

MYERS: Good for you.

COSTELLO: Time for some late night...

MYERS: Pick one of those diesel buses.

COSTELLO: Time for some "Late Night Laughs" right now, Chad.

David Letterman poking fun at not just the current president, but the former one as well. Here he is.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, TALK SHOW HOST: How about President Bush? You folks been enjoying the new relaxed President Bush? Have you noticed that he's -- he's more relaxed? And they say the reason that President George Bush is more relaxed is every afternoon he gets a full body massage.

(LAUGHTER)

Yes. The afternoon massage takes the place of the old Bush method, vodka.

(APPLAUSE)

That was -- but I was thinking about this, a full body massage in the afternoon. Isn't that what got the last guy impeached?

(END VIDEO CLIP)

COSTELLO: No, I think that was only a massage on part of his body.

MYERS: Something different than that.

COSTELLO: Hi, Chad. Are you ready for our DAYBREAK "Eye Openers?"

MYERS: Well, I hear your computer isn't working up there. So that's why I've been printing up my e-mails here.

COSTELLO: OK. So you're busy.

MYERS: So I've been working hard on them, Carol, trying to keep this show rolling.

COSTELLO: All right. Well, you continue to work on those e- mails. And I'm going to read the DAYBREAK "Eye Openers." OK?

MYERS: All right.

COSTELLO: OK.

Much of Juno Beach in Florida is closed due to a swarm of sharks. Take a look at this, Chad. I know you're working, but take a look at it anyway.

MYERS: Shark. Shark. Shark.

COSTELLO: Yes, those things that look like tadpoles are actually sharks. Experts say this is an annual occurrence on the Atlantic Ocean side of the state. The spinner and black tip sharks have moved into shallower water to feed on small fish.

MYERS: Fins to the left of me, fins to the right.

COSTELLO: And sharp ones, too.

This little beaver caused its share of trouble in one Bangor, Maine, neighborhood. Look at him. It seems he wandered out of his stream to find a new home. I guess the town homes in the area looked like a pretty good starting place.

MYERS: Sure. Sure.

COSTELLO: But the beaver was finally lassoed. They're going to get him. They're going to get him.

MYERS: Oh, look out!

COSTELLO: He's a feisty beaver.

MYERS: The animal control people were in my neighborhood yesterday, Carol. They were looking for a possum. A possum? There are possum everywhere. How are you going to catch those?

COSTELLO: Oh. Look, they're taking that beaver back in the woods.

MYERS: They're putting him back in his river.

COSTELLO: There.

MYERS: Yes, about 100 feet from where he started.

COSTELLO: Like he won't wander back.

Wanda and Winky are headed west.

MYERS: Oh, yes, to the old folks' home.

COSTELLO: Exactly. Two aging elephants are on their way from the Detroit Zoo to a special sanctuary, or old folks' home for elephants in Sacramento. The 2,300-mile journey should take more than two days. They were loaded into a specially-fitted tractor trailer for the trip. That's a big tractor trailer.

MYERS: I wonder if they get big Depends.

COSTELLO: Oh, jeez, Chad. This show is like going to drive off the edge of a cliff soon.

OK. Now it's time to read some e-mail, Chad. And I know you've been working. And our topic this morning are the rising gas prices.

And we were wondering, how high do gas prices need to go for you to change your driving habits? MYERS: I believe the pain is already here for a lot of folks. And a lot of folks drive a long way.

I heard the other day the average commute is 41 minutes each way. So you've got to figure a mile a minute. That's 41 miles, or maybe a little bit less. But still, you're getting that kind of miles per gallon.

That's two gallons each direction. That's a $5 commute each way. Ten bucks just to get there and back from work.

Mark from Rockford, Illinois, says he's going to start driving his Harley no matter how cold it gets. "My SUV gets 18 miles a gallon, my Harley gets 40. Do the math. I can't afford to drive that SUV anymore."

And I think a lot of folks are seeing the same thing. No matter what the rebates are, no matter how high GM, Ford and DaimlerChrysler can get those rebates on those big SUVs, they just seem to be sitting there on the lot.

From Jack in Greensboro, "The higher cost of gasoline will not deter people to drive. It is a fixed cost. Yet it will force people to do other things, maybe buy a little less food. Generic brands, maybe, or quit the gym."

Maybe you should keep the gym and maybe walk to work, or something like that. I don't know. Whatever.

COSTELLO: It would be a good idea.

MYERS: Yes.

COSTELLO: All right. Well get to more e-mails a little later.

MYERS: OK.

COSTELLO: Coming up in the next half-hour on DAYBREAK, an unsolved mystery may be revealed soon. Who is the pope's secret cardinal?

Plus, his voice is raspy, but his attitude is upbeat. We'll hear more from Peter Jennings about his battle with lung cancer.

(COMMERCIAL BREAK)

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