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American Morning

'Newsweek' Magazine Retracts Report That Sparked Riots in Afghanistan; Discussion With Senator John McCain

Aired May 17, 2005 - 07:00   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.


SOLEDAD O'BRIEN, CNN ANCHOR: "Newsweek" magazine retracts a report that sparked riots in Afghanistan. Is that enough? We'll talk to "Newsweek's" Washington bureau chief about calls for the magazine to do even more.
Can the Senate rank and file find a last minute compromise on the filibuster? Senator John McCain with us live to discuss the looming showdown.

And getting ready for the hurricanes. Could this year be even worse than last year? A dangerous forecast, ahead on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING, with Soledad O'Brien and Bill Hemmer.

S. O'BRIEN: Good morning. Welcome, everybody. Bill hemmer's got another day off today. He's wrapping up that golf tournament in honor of his grandfather. Hopefully they got some good weather for that.

Miles O'Brien, though, is helping us out once again. Thank you for that.

MILES O'BRIEN, CNN ANCHOR: Good to be here. Good morning to you.

Also ahead, we're going to reveal the tricks scam artists use at ATMs to steal your bank account information, write down to your pin number.

S. O'BRIEN: Some the things they're coming up with are truly innovative, and amazing and really scary.

M. O'BRIEN: Hidden cameras. Boy, it is scary. Be careful.

Jack Cafferty is with us as well this morning. Hello.

JACK CAFFERTY, CNN ANCHOR: Good morning.

The stage is set for a showdown in the Senate. It could come as early as tomorrow. Negotiations between Bill Frist and Harry Reid collapsed yesterday on the issue of filibustering judicial nominees in the Senate. Tomorrow Mr. Frist will submit two new names of people being considered for judicial appointments, and that could trigger the battle royale. We will take a look at the implications if this happens. They are huge for both parties, see what you think about the issue in a few minutes.

S. O'BRIEN: More on that this morning as well, and we're talking to Senator McCain in just a few minutes. Thanks, Jack.

The Bush administration not fully satisfied with "Newsweek's" latest step. The magazine has added a full retraction to its apology for a story claiming U.S. troops desecrated the Koran. But the Bush administration wants something more done to repair damage.

Barbara Starr now live at the Pentagon for us.

Barbara, good morning.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Soledad.

Well, indeed, even with that retraction, the Bush administration wants "Newsweek" to explain how it got the story wrong.

(BEGIN VIDEOTAPE)

STARR (voice-over): After days of anger in the Muslim world and mounting political pressure from the Bush administration, "Newsweek" magazine retracted its story about desecration of the Koran at the U.S. detention facility at Guantanamo Bay, Cuba.

A senior White House official called it a good first step. Allegations, so far unproven, that U.S. military personnel desecrated the Koran at the U.S. detention facility at Guantanamo Bay, Cuba have swirled around for months.

But then, in its May 9th issue, "Newsweek" magazine said interrogators, in an attempt to rattle suspects, flushed a Koran down a toilet. That touched off riots in Afghanistan and Pakistan, leaving at least 15 dead. Now, "Newsweek" says they got it wrong, their source no longer certain about where he got the information that he told the magazine.

DAN KLAIDMAN, "NEWSWEEK" WASHINGTON BUREAU CHIEF: This was an honest mistake. We are, obviously, not very happy about it.

STARR: Before "Newsweek's" retraction, the Bush administration struck back hard at the magazine.

RICHARD BOUCHER, STATE DEPT. SPOKESMAN: It's appalling really that an article that was unfounded to begin with has caused so much harm.

DONALD RUMSFELD, DEFENSE SECY: People lost their lives. People are dead. And that's unfortunate.

STARR: The military opened a new inquiry after the "Newsweek" article, publicly acknowledging it is looking into allegations of mishandling the Koran. But so far, officials say, they haven't found any evidence of wrongdoing.

GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: More than one detainee tore pages out of the Koran and put it in the toilet in protest to stop up the toilet. But we've not found where any wrongdoing on the part of U.S. service members.

STARR: But in Afghanistan and Pakistan, where tensions still are running high, the military is trying to make sure everyone knows its side of the story.

COL. JAMES YONTS, SPOKESMAN IN AFGHANISTAN: Any disrespect to the Koran and any other religion is not tolerated by our culture and our values. That goes against our beliefs.

(END VIDEOTAPE)

STARR: Soledad, military officials say those riots in eastern Afghanistan, that they might well have happened anyhow, given the tensions in the region. And they still underscore that they do investigate all credible allegations about abuse of the Koran and any other allegations at Guantanamo Bay. So far, they say, they have found no proof of Koran desecration. Soledad?

S. O'BRIEN: Barbara, military satisfied with the apology/retraction now, or do they want more, like the White House?

STARR: Well, they know that there is still now this problem in the region, that a lot of people don't believe them. And, in fact, military officials diplomatic officials from the U.S. government say that they are going to move throughout Afghanistan and Pakistan and try and communicate more information about this problem. Soledad, it's probably worth reminding everyone that there are still two open probes about potential misconduct at Guantanamo Bay. The one that "Newsweek" talked about, that "Newsweek" got wrong, but there is a probe that's still going on about allegations of general misconduct at Guantanamo Bay. That does not include Koran allegations, we are told, and the probe that was opened after "Newsweek" published its original article. So still, the books are just not closed on this quite yet -- Soledad.

S. O'BRIEN: Barbara Starr at the Pentagon for us. Barbara, thanks as always.

We're going to find out more about what "Newsweek" plans to do when the magazine's Washington bureau chief joins us at the start of the next half hour -- Miles.

M. O'BRIEN: Several new developments out of Iraq now for you. Another government official gunned down early today in southern Baghdad. A member of the nation's Public Integrity Commission. Near Tikrit, a roadside bomb detonated next to a combat patrol, killing one U.S. soldier, wounding another. Farther north in Mosul, U.S. troops clashed with insurgents, exchanging heavy machine gunfire with the militants. No word on casualties is. The violence comes as Iran's foreign minister, Kamal Kharrazi arrives in Baghdad to meet with leaders of the new Iraqi government.

Among expected topics will be how the wave in violence in Iraq can be stopped. It's the highest level visit by an official from Tehran since Saddam Hussein was overthrown.

S. O'BRIEN: Iraq's Oil-for-Food scandal will be the subject of a Senate hearing in less than three hours from now. George Galloway, a fiery anti-war British parliament member will testify. On arriving in Washington D.C. last night, Galloway told Reuters this, quote, "I have no expectation of justice from a group of Christian fundamentalists and Zionist activists under the chairmanship of a neocon, George Bush, who is pro war."

Richard Roth has got more on the story this morning.

(BEGIN VIDEOTAPE)

RICHARD ROTH, CNN CORRESPONDENT (voice-over): George Galloway left the U.K. promising, in his words, to give the Senate hell.

GEORGE GALLOWAY, BRITISH PARLIAMENT MEMBER: The truth is I have never bought or sold a drop of oil from Iraq or sold or bought a drop of oil from anybody. And if I had, I'd be a very rich man.

ROTH: At London's Heathrow airport he ridiculed the Senate report that revived allegations that deposed Iraqi dictator Saddam Hussein granted him vouchers to import 20 million barrels of Iraqi crude between 2000 and 2003.

GALLOWAY: The story, at least a year old, which boils down to my name being insulted on pieces of paper. If I had actually performed any oil deals, you'd know about it now. The person who gave me the millions and millions of dollars would already be in front of the television cameras.

ROTH: Galloway has been a leading critic of Britain's alliance with the U.S. on the war with Iraq and was recently reelected on that platform. He is accused of steering his oil to a Jordanian businessman, who financed a foundation that sent medical aid to Iraq. Galloway will be the top witness before Senator Norm Coleman's investigative subcommittee, which in recent days condemned a number of European politicians, it says, were awarded for supporting Iraq's bid to lift sanctions. Among them, former French Interior Minister Charles Pasqua. The subcommittee says he was allocated 11 million barrels.

CHARLES PASQUA, FMR. FRENCH INTERIOR MINISTER: I wrote to Mr. Coleman, the president of subcommittee, and I tell him that all allegations about myself are false.

ROTH: And Russian deputy parliament speaker Vladimir Zhirinovsky, allegedly granted more allocations than a number of top Russian officials cited, 76 million barrels.

VLADIMIR ZHIRINOVSKY, DEP. SPKR., RUSSIAN PARLIAMENT (through translator): I've never received any contract and never received a cent from Iraq.

ROTH: Coleman says the evidence, including interviews with former top Saddam loyalists, speaks for itself. SEN. NORM COLEMAN, INVESTIGATIVE SUBCOMMITTEE: All we've done is report what we've found, and what we've found were Iraqi documents made at a time when Saddam was in power that specifically listed these individuals by name, laid out the allocations they were given.

ROTH (on camera): The U.S. senator wants the British parliamentarian sworn in, warning Galloway he could face perjury charges for lying to the committee if the accusations are later proven true.

Richard Roth, CNN, United Nations.

(END VIDEOTAPE)

S. O'BRIEN: The hearing is certain to be interesting. Mr. Galloway called Senator Coleman -- you just saw there a moment ago -- a, quote, "lick spittle crazed neocon who's engaged in a witch hunt."

M. O'BRIEN: Them's fighting words. All right, a low-fat diet may help breast cancer from returning. Researchers looked at post menopausal who had been women treated for breast cancer. About two- thirds of them ate a normal diet of 51 grams of fat a day. The rest were on a low-fat diet, about 33 grams of fat. After five years, the study found the low-fat group were 42 percent less likely to have a cancer return. Dr. Sanjay Gupta will explain more on this new finding in our next hour -- Soledad.

S. O'BRIEN: I told you a little bit about this yesterday. You want to be prepared for more hurricanes than usual this year. Government forecasters now predicting seven to nine hurricanes this season. They expect two or three of them to hit the United States. The season begins June 1st, lasts until November 30th. Three to five of the storms will reach category three, by their predictions. Those have winds from 111 to 130 miles an hour. Last year's predictions was for six to eight hurricanes. There were nine. Four of them hit Florida. They caused more than $40 billion in damage and at least 130 deaths. Scientists base their higher prediction now on this year's warmer ocean temperatures.

(WEATHER REPORT)

M. O'BRIEN: Up next, Senator John McCain joins us live with a behind the scenes insight into what's going on to hammer out a filibuster compromise.

S. O'BRIEN: Also this morning, more on "Newsweek's" decision to retract its Koran story. We're going to talk with their Washington bureau chief.

M. O'BRIEN: And why is a prominent author and professor calling Bill Cosby vicious? Puddin' Pops guy? That story and more, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: All right. While we wait for Senator John McCain, we'll do our own little filibuster here with Andy Serwer. A major air carrier is trying to ease fears about a strike, saying keep booking those trips. Just go ahead and keep flying -- Andy.

ANDY SERWER, "FORTUNE" MAGAZINE: We'll talk about that. I don't know much about filibustering, though, Miles. Let's talk about United Airlines, the world's second largest carrier. A lot of balls in the air. First of all, "The Washington" post reporting that executives from United have been calling Fortune 500 executives and urging them to keep flying with the beleaguered carrier. Independent travel agents urge more caution than that, perhaps, though.

Perhaps some good news for United, though coming yesterday, a tentative agreement with the mechanic's union yesterday. Still has to be ratified by the rank and file. That's 7,000 members, and those are the people who work on the jet engines. The machinist's union, which is a much larger union, with 20,000 employees, still has not come to an agreement. Those are the people who handle the baggage and the ticket agents.

Meanwhile, another little update here on this business, Miles. We talked about the major carriers raising airfares, and now the discount carriers have followed suit and are raising ticket prices as well. I don't know why we can call them discount carriers anymore if they keep raising prices like that. But anyway...

M. O'BRIEN: Kind of goes to the heart of the business model there. If you start raising prices, (INAUDIBLE) me, too, doesn't it?

SERWER: Exactly.

M. O'BRIEN: Hey, are you going to be watching Home Depot this morning? That's a big announcement this morning on its earnings, right?

SERWER: That's right, yes. We'll be checking into that and talking about Lowe's and other home improvement companies as well.

M. O'BRIEN: All right, Andy Serwer, thank you very much -- Soledad.

SERWER: You're welcome.

S. O'BRIEN: Let's get to Capitol Hill this morning.

The Senate appears to be headed for a showdown over judicial nominees, as well as potentially historic changes in the filibuster rules.

But a bipartisan group of senators is still working on a compromise. Their plan would OK five of President Bush's judicial nominees but not change the Senate rules on filibusters.

Joining us this morning to talk about that and many other things, as well, Arizona Republican Senator John McCain.

Nice to see you, Senator. Thanks for talking with us. SEN. JOHN MCCAIN (R), ARIZONA: Thanks, Soledad.

Could I mention you forgot one part of that -- the compromise. That's very important. And that would be a commitment on the part of enough Democrats that they would not filibuster Supreme Court or appellate judge nominees unless there were the most extraordinary circumstances.

S. O'BRIEN: Thank you for that addition.

How close are we, in fact, to this compromise actually working out?

MCCAIN: It's hard to say. There's a lot of cross-pressures. There's a lot of activity on both extremes of the political spectrum. It's hard to know. We'll know more today.

But it's very tough, and there's enormous pressures being applied to all members.

S. O'BRIEN: The five judicial picks would have up-or-down votes -- three of them, though, essentially still stalled.

From what you just mentioned, the additional information about promises from the Democratic side, do you think that that gives a long-term resolution to the problems behind filibustering?

MCCAIN: Well, this all started with the Democrats abusing the process by filibustering so many of President Bush's nominees, and that provoked this reaction. And I believe the Democrats, at least the moderate ones, have learned that this filibuster should be used only in extreme cases and judiciously.

So I think what it would do, if it were approved, would cause both sides to back off and to work in the way that we've worked for the last 200 years.

Soledad, most of our viewers know that the Senate works in an atmosphere of trust and agreement. And it's very easy to shut down the Senate. It was designed that way. That's why we have two houses of Congress.

And so I think what -- this has brought us to the brink, and if we can step back from it, I think it would improve the atmosphere around here. But as you know, the environment in the country is very bitter and very partisan today, and it certainly is reflected here on Capitol Hill.

S. O'BRIEN: We'll see what happens later today.

Let's take a moment to talk about the Newsweek story -- Newsweek now retracting their story after a couple of days of apologies.

Do you think that goes far enough -- that retraction? The White House says no. MCCAIN: Well, I think everybody should try to -- I think we should know what it that is caused this and how it happened. I'm glad that Newsweek did retract.

But I think we should all be aware, particularly the news media, of how volatile the situation is in some parts of the Middle East, particularly in less developed -- that most anything that is said or done that touches on the Muslim religion can be exploited by extremists. I'm sure that the story was exploited by religious extremists in the Middle East.

But that doesn't change the fact that we have to have reliable and absolutely accurate stories, particularly on such a volatile issue.

S. O'BRIEN: Obviously, in the wake of the riots, people died as a result, it's now acknowledged, of those reports. But do you think there's been significant long-term damage as well as a result?

MCCAIN: I think there's been a lot of things that caused long- term, significant damage, including Abu Ghraib and the stories and pictures surrounding that terrible situation.

But we have a war of ideals and ideas, and that is to sell democracy and freedom and tolerance to the world, and the stories like these set us back.

S. O'BRIEN: Today, you are calling for the release of 408 Moroccan prisoners of war. They are being held by an Algerian-backed soldier -- some of them held -- I think the average is something like 17 years.

There was a cease-fire that was signed back in '91. Why haven't these men been released?

MCCAIN: They haven't been released because the Polisario, this group that was warring against Moroccan government for some sort of independence, wants to use them as leverage in continued negotiations. It's a human tragedy -- 408 people being held for 25 years. They're human beings. We should all work for their release. As a result of a cease-fire that took place, they should have been released.

S. O'BRIEN: You're holding a press conference, I know, to underscore your interest in the release of these men.

Senator John McCain, thanks for talking with us this morning. Appreciate your time.

MCCAIN: Thank you, Soledad.

S. O'BRIEN: Coming up this morning, essential information for anybody who uses an ATM. What you need to know to keep your money safe and keep yourself safe from the high-tech schemes. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK) M. O'BRIEN: Let's get right to the "Cafferty File" and the Question of The Day from Jack.

CAFFERTY: Thank you, Soledad.

Showdown looming now in the Senate on the so-called nuclear option for ending filibusters on judicial nominees. Negotiations between Majority Leader Bill Frist, and Minority Leader Harry Reid collapsed yesterday. Confrontation could happen as early as tomorrow. Frist is expected to put forward a vote on two Bush nominees, Texas Judge Priscilla Owens, California Judge Janice Rogers Brown. Democrats have vowed to filibuster both. Majority leader Frist could then seek a change in Senate rules that would bar the use of the filibuster for judicial nominees. It's been dubbed the nuclear option. Democrats are calling it a Republican power grab.

The question this morning, is should the Senate end the filibuster for judicial nominees? The address is am@CNN.com.

S. O'BRIEN: It's interesting to hear about the compromise on the table at least from Senator McCain, although he doesn't seem to feel 100 percent like it's going to go anywhere at this point.

CAFFERTY: The Democrats are scared to death, not about these nominees, but about the Supreme Court nominees that will come down from the White House in the event that President Bush is in a position to nominate Supreme Court justices. That's why they're desperate to hold on to this filibuster.

M. O'BRIEN: Doesn't sound like a lot of compromise is in the air right now.

CAFFERTY: There's none.

M. O'BRIEN: None, that would be the word.

(CROSSTALK)

S. O'BRIEN: All right, Jack, thanks. Good question.

M. O'BRIEN: Still to come, "Newsweek's" Washington bureau chief explains the magazine's decision to retract its Koran story. He joins us live. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired May 17, 2005 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: "Newsweek" magazine retracts a report that sparked riots in Afghanistan. Is that enough? We'll talk to "Newsweek's" Washington bureau chief about calls for the magazine to do even more.
Can the Senate rank and file find a last minute compromise on the filibuster? Senator John McCain with us live to discuss the looming showdown.

And getting ready for the hurricanes. Could this year be even worse than last year? A dangerous forecast, ahead on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING, with Soledad O'Brien and Bill Hemmer.

S. O'BRIEN: Good morning. Welcome, everybody. Bill hemmer's got another day off today. He's wrapping up that golf tournament in honor of his grandfather. Hopefully they got some good weather for that.

Miles O'Brien, though, is helping us out once again. Thank you for that.

MILES O'BRIEN, CNN ANCHOR: Good to be here. Good morning to you.

Also ahead, we're going to reveal the tricks scam artists use at ATMs to steal your bank account information, write down to your pin number.

S. O'BRIEN: Some the things they're coming up with are truly innovative, and amazing and really scary.

M. O'BRIEN: Hidden cameras. Boy, it is scary. Be careful.

Jack Cafferty is with us as well this morning. Hello.

JACK CAFFERTY, CNN ANCHOR: Good morning.

The stage is set for a showdown in the Senate. It could come as early as tomorrow. Negotiations between Bill Frist and Harry Reid collapsed yesterday on the issue of filibustering judicial nominees in the Senate. Tomorrow Mr. Frist will submit two new names of people being considered for judicial appointments, and that could trigger the battle royale. We will take a look at the implications if this happens. They are huge for both parties, see what you think about the issue in a few minutes.

S. O'BRIEN: More on that this morning as well, and we're talking to Senator McCain in just a few minutes. Thanks, Jack.

The Bush administration not fully satisfied with "Newsweek's" latest step. The magazine has added a full retraction to its apology for a story claiming U.S. troops desecrated the Koran. But the Bush administration wants something more done to repair damage.

Barbara Starr now live at the Pentagon for us.

Barbara, good morning.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Soledad.

Well, indeed, even with that retraction, the Bush administration wants "Newsweek" to explain how it got the story wrong.

(BEGIN VIDEOTAPE)

STARR (voice-over): After days of anger in the Muslim world and mounting political pressure from the Bush administration, "Newsweek" magazine retracted its story about desecration of the Koran at the U.S. detention facility at Guantanamo Bay, Cuba.

A senior White House official called it a good first step. Allegations, so far unproven, that U.S. military personnel desecrated the Koran at the U.S. detention facility at Guantanamo Bay, Cuba have swirled around for months.

But then, in its May 9th issue, "Newsweek" magazine said interrogators, in an attempt to rattle suspects, flushed a Koran down a toilet. That touched off riots in Afghanistan and Pakistan, leaving at least 15 dead. Now, "Newsweek" says they got it wrong, their source no longer certain about where he got the information that he told the magazine.

DAN KLAIDMAN, "NEWSWEEK" WASHINGTON BUREAU CHIEF: This was an honest mistake. We are, obviously, not very happy about it.

STARR: Before "Newsweek's" retraction, the Bush administration struck back hard at the magazine.

RICHARD BOUCHER, STATE DEPT. SPOKESMAN: It's appalling really that an article that was unfounded to begin with has caused so much harm.

DONALD RUMSFELD, DEFENSE SECY: People lost their lives. People are dead. And that's unfortunate.

STARR: The military opened a new inquiry after the "Newsweek" article, publicly acknowledging it is looking into allegations of mishandling the Koran. But so far, officials say, they haven't found any evidence of wrongdoing.

GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: More than one detainee tore pages out of the Koran and put it in the toilet in protest to stop up the toilet. But we've not found where any wrongdoing on the part of U.S. service members.

STARR: But in Afghanistan and Pakistan, where tensions still are running high, the military is trying to make sure everyone knows its side of the story.

COL. JAMES YONTS, SPOKESMAN IN AFGHANISTAN: Any disrespect to the Koran and any other religion is not tolerated by our culture and our values. That goes against our beliefs.

(END VIDEOTAPE)

STARR: Soledad, military officials say those riots in eastern Afghanistan, that they might well have happened anyhow, given the tensions in the region. And they still underscore that they do investigate all credible allegations about abuse of the Koran and any other allegations at Guantanamo Bay. So far, they say, they have found no proof of Koran desecration. Soledad?

S. O'BRIEN: Barbara, military satisfied with the apology/retraction now, or do they want more, like the White House?

STARR: Well, they know that there is still now this problem in the region, that a lot of people don't believe them. And, in fact, military officials diplomatic officials from the U.S. government say that they are going to move throughout Afghanistan and Pakistan and try and communicate more information about this problem. Soledad, it's probably worth reminding everyone that there are still two open probes about potential misconduct at Guantanamo Bay. The one that "Newsweek" talked about, that "Newsweek" got wrong, but there is a probe that's still going on about allegations of general misconduct at Guantanamo Bay. That does not include Koran allegations, we are told, and the probe that was opened after "Newsweek" published its original article. So still, the books are just not closed on this quite yet -- Soledad.

S. O'BRIEN: Barbara Starr at the Pentagon for us. Barbara, thanks as always.

We're going to find out more about what "Newsweek" plans to do when the magazine's Washington bureau chief joins us at the start of the next half hour -- Miles.

M. O'BRIEN: Several new developments out of Iraq now for you. Another government official gunned down early today in southern Baghdad. A member of the nation's Public Integrity Commission. Near Tikrit, a roadside bomb detonated next to a combat patrol, killing one U.S. soldier, wounding another. Farther north in Mosul, U.S. troops clashed with insurgents, exchanging heavy machine gunfire with the militants. No word on casualties is. The violence comes as Iran's foreign minister, Kamal Kharrazi arrives in Baghdad to meet with leaders of the new Iraqi government.

Among expected topics will be how the wave in violence in Iraq can be stopped. It's the highest level visit by an official from Tehran since Saddam Hussein was overthrown.

S. O'BRIEN: Iraq's Oil-for-Food scandal will be the subject of a Senate hearing in less than three hours from now. George Galloway, a fiery anti-war British parliament member will testify. On arriving in Washington D.C. last night, Galloway told Reuters this, quote, "I have no expectation of justice from a group of Christian fundamentalists and Zionist activists under the chairmanship of a neocon, George Bush, who is pro war."

Richard Roth has got more on the story this morning.

(BEGIN VIDEOTAPE)

RICHARD ROTH, CNN CORRESPONDENT (voice-over): George Galloway left the U.K. promising, in his words, to give the Senate hell.

GEORGE GALLOWAY, BRITISH PARLIAMENT MEMBER: The truth is I have never bought or sold a drop of oil from Iraq or sold or bought a drop of oil from anybody. And if I had, I'd be a very rich man.

ROTH: At London's Heathrow airport he ridiculed the Senate report that revived allegations that deposed Iraqi dictator Saddam Hussein granted him vouchers to import 20 million barrels of Iraqi crude between 2000 and 2003.

GALLOWAY: The story, at least a year old, which boils down to my name being insulted on pieces of paper. If I had actually performed any oil deals, you'd know about it now. The person who gave me the millions and millions of dollars would already be in front of the television cameras.

ROTH: Galloway has been a leading critic of Britain's alliance with the U.S. on the war with Iraq and was recently reelected on that platform. He is accused of steering his oil to a Jordanian businessman, who financed a foundation that sent medical aid to Iraq. Galloway will be the top witness before Senator Norm Coleman's investigative subcommittee, which in recent days condemned a number of European politicians, it says, were awarded for supporting Iraq's bid to lift sanctions. Among them, former French Interior Minister Charles Pasqua. The subcommittee says he was allocated 11 million barrels.

CHARLES PASQUA, FMR. FRENCH INTERIOR MINISTER: I wrote to Mr. Coleman, the president of subcommittee, and I tell him that all allegations about myself are false.

ROTH: And Russian deputy parliament speaker Vladimir Zhirinovsky, allegedly granted more allocations than a number of top Russian officials cited, 76 million barrels.

VLADIMIR ZHIRINOVSKY, DEP. SPKR., RUSSIAN PARLIAMENT (through translator): I've never received any contract and never received a cent from Iraq.

ROTH: Coleman says the evidence, including interviews with former top Saddam loyalists, speaks for itself. SEN. NORM COLEMAN, INVESTIGATIVE SUBCOMMITTEE: All we've done is report what we've found, and what we've found were Iraqi documents made at a time when Saddam was in power that specifically listed these individuals by name, laid out the allocations they were given.

ROTH (on camera): The U.S. senator wants the British parliamentarian sworn in, warning Galloway he could face perjury charges for lying to the committee if the accusations are later proven true.

Richard Roth, CNN, United Nations.

(END VIDEOTAPE)

S. O'BRIEN: The hearing is certain to be interesting. Mr. Galloway called Senator Coleman -- you just saw there a moment ago -- a, quote, "lick spittle crazed neocon who's engaged in a witch hunt."

M. O'BRIEN: Them's fighting words. All right, a low-fat diet may help breast cancer from returning. Researchers looked at post menopausal who had been women treated for breast cancer. About two- thirds of them ate a normal diet of 51 grams of fat a day. The rest were on a low-fat diet, about 33 grams of fat. After five years, the study found the low-fat group were 42 percent less likely to have a cancer return. Dr. Sanjay Gupta will explain more on this new finding in our next hour -- Soledad.

S. O'BRIEN: I told you a little bit about this yesterday. You want to be prepared for more hurricanes than usual this year. Government forecasters now predicting seven to nine hurricanes this season. They expect two or three of them to hit the United States. The season begins June 1st, lasts until November 30th. Three to five of the storms will reach category three, by their predictions. Those have winds from 111 to 130 miles an hour. Last year's predictions was for six to eight hurricanes. There were nine. Four of them hit Florida. They caused more than $40 billion in damage and at least 130 deaths. Scientists base their higher prediction now on this year's warmer ocean temperatures.

(WEATHER REPORT)

M. O'BRIEN: Up next, Senator John McCain joins us live with a behind the scenes insight into what's going on to hammer out a filibuster compromise.

S. O'BRIEN: Also this morning, more on "Newsweek's" decision to retract its Koran story. We're going to talk with their Washington bureau chief.

M. O'BRIEN: And why is a prominent author and professor calling Bill Cosby vicious? Puddin' Pops guy? That story and more, ahead on AMERICAN MORNING.

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M. O'BRIEN: All right. While we wait for Senator John McCain, we'll do our own little filibuster here with Andy Serwer. A major air carrier is trying to ease fears about a strike, saying keep booking those trips. Just go ahead and keep flying -- Andy.

ANDY SERWER, "FORTUNE" MAGAZINE: We'll talk about that. I don't know much about filibustering, though, Miles. Let's talk about United Airlines, the world's second largest carrier. A lot of balls in the air. First of all, "The Washington" post reporting that executives from United have been calling Fortune 500 executives and urging them to keep flying with the beleaguered carrier. Independent travel agents urge more caution than that, perhaps, though.

Perhaps some good news for United, though coming yesterday, a tentative agreement with the mechanic's union yesterday. Still has to be ratified by the rank and file. That's 7,000 members, and those are the people who work on the jet engines. The machinist's union, which is a much larger union, with 20,000 employees, still has not come to an agreement. Those are the people who handle the baggage and the ticket agents.

Meanwhile, another little update here on this business, Miles. We talked about the major carriers raising airfares, and now the discount carriers have followed suit and are raising ticket prices as well. I don't know why we can call them discount carriers anymore if they keep raising prices like that. But anyway...

M. O'BRIEN: Kind of goes to the heart of the business model there. If you start raising prices, (INAUDIBLE) me, too, doesn't it?

SERWER: Exactly.

M. O'BRIEN: Hey, are you going to be watching Home Depot this morning? That's a big announcement this morning on its earnings, right?

SERWER: That's right, yes. We'll be checking into that and talking about Lowe's and other home improvement companies as well.

M. O'BRIEN: All right, Andy Serwer, thank you very much -- Soledad.

SERWER: You're welcome.

S. O'BRIEN: Let's get to Capitol Hill this morning.

The Senate appears to be headed for a showdown over judicial nominees, as well as potentially historic changes in the filibuster rules.

But a bipartisan group of senators is still working on a compromise. Their plan would OK five of President Bush's judicial nominees but not change the Senate rules on filibusters.

Joining us this morning to talk about that and many other things, as well, Arizona Republican Senator John McCain.

Nice to see you, Senator. Thanks for talking with us. SEN. JOHN MCCAIN (R), ARIZONA: Thanks, Soledad.

Could I mention you forgot one part of that -- the compromise. That's very important. And that would be a commitment on the part of enough Democrats that they would not filibuster Supreme Court or appellate judge nominees unless there were the most extraordinary circumstances.

S. O'BRIEN: Thank you for that addition.

How close are we, in fact, to this compromise actually working out?

MCCAIN: It's hard to say. There's a lot of cross-pressures. There's a lot of activity on both extremes of the political spectrum. It's hard to know. We'll know more today.

But it's very tough, and there's enormous pressures being applied to all members.

S. O'BRIEN: The five judicial picks would have up-or-down votes -- three of them, though, essentially still stalled.

From what you just mentioned, the additional information about promises from the Democratic side, do you think that that gives a long-term resolution to the problems behind filibustering?

MCCAIN: Well, this all started with the Democrats abusing the process by filibustering so many of President Bush's nominees, and that provoked this reaction. And I believe the Democrats, at least the moderate ones, have learned that this filibuster should be used only in extreme cases and judiciously.

So I think what it would do, if it were approved, would cause both sides to back off and to work in the way that we've worked for the last 200 years.

Soledad, most of our viewers know that the Senate works in an atmosphere of trust and agreement. And it's very easy to shut down the Senate. It was designed that way. That's why we have two houses of Congress.

And so I think what -- this has brought us to the brink, and if we can step back from it, I think it would improve the atmosphere around here. But as you know, the environment in the country is very bitter and very partisan today, and it certainly is reflected here on Capitol Hill.

S. O'BRIEN: We'll see what happens later today.

Let's take a moment to talk about the Newsweek story -- Newsweek now retracting their story after a couple of days of apologies.

Do you think that goes far enough -- that retraction? The White House says no. MCCAIN: Well, I think everybody should try to -- I think we should know what it that is caused this and how it happened. I'm glad that Newsweek did retract.

But I think we should all be aware, particularly the news media, of how volatile the situation is in some parts of the Middle East, particularly in less developed -- that most anything that is said or done that touches on the Muslim religion can be exploited by extremists. I'm sure that the story was exploited by religious extremists in the Middle East.

But that doesn't change the fact that we have to have reliable and absolutely accurate stories, particularly on such a volatile issue.

S. O'BRIEN: Obviously, in the wake of the riots, people died as a result, it's now acknowledged, of those reports. But do you think there's been significant long-term damage as well as a result?

MCCAIN: I think there's been a lot of things that caused long- term, significant damage, including Abu Ghraib and the stories and pictures surrounding that terrible situation.

But we have a war of ideals and ideas, and that is to sell democracy and freedom and tolerance to the world, and the stories like these set us back.

S. O'BRIEN: Today, you are calling for the release of 408 Moroccan prisoners of war. They are being held by an Algerian-backed soldier -- some of them held -- I think the average is something like 17 years.

There was a cease-fire that was signed back in '91. Why haven't these men been released?

MCCAIN: They haven't been released because the Polisario, this group that was warring against Moroccan government for some sort of independence, wants to use them as leverage in continued negotiations. It's a human tragedy -- 408 people being held for 25 years. They're human beings. We should all work for their release. As a result of a cease-fire that took place, they should have been released.

S. O'BRIEN: You're holding a press conference, I know, to underscore your interest in the release of these men.

Senator John McCain, thanks for talking with us this morning. Appreciate your time.

MCCAIN: Thank you, Soledad.

S. O'BRIEN: Coming up this morning, essential information for anybody who uses an ATM. What you need to know to keep your money safe and keep yourself safe from the high-tech schemes. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK) M. O'BRIEN: Let's get right to the "Cafferty File" and the Question of The Day from Jack.

CAFFERTY: Thank you, Soledad.

Showdown looming now in the Senate on the so-called nuclear option for ending filibusters on judicial nominees. Negotiations between Majority Leader Bill Frist, and Minority Leader Harry Reid collapsed yesterday. Confrontation could happen as early as tomorrow. Frist is expected to put forward a vote on two Bush nominees, Texas Judge Priscilla Owens, California Judge Janice Rogers Brown. Democrats have vowed to filibuster both. Majority leader Frist could then seek a change in Senate rules that would bar the use of the filibuster for judicial nominees. It's been dubbed the nuclear option. Democrats are calling it a Republican power grab.

The question this morning, is should the Senate end the filibuster for judicial nominees? The address is am@CNN.com.

S. O'BRIEN: It's interesting to hear about the compromise on the table at least from Senator McCain, although he doesn't seem to feel 100 percent like it's going to go anywhere at this point.

CAFFERTY: The Democrats are scared to death, not about these nominees, but about the Supreme Court nominees that will come down from the White House in the event that President Bush is in a position to nominate Supreme Court justices. That's why they're desperate to hold on to this filibuster.

M. O'BRIEN: Doesn't sound like a lot of compromise is in the air right now.

CAFFERTY: There's none.

M. O'BRIEN: None, that would be the word.

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S. O'BRIEN: All right, Jack, thanks. Good question.

M. O'BRIEN: Still to come, "Newsweek's" Washington bureau chief explains the magazine's decision to retract its Koran story. He joins us live. That's ahead on AMERICAN MORNING.

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