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CNN Live At Daybreak
Latest News from Iraq; A New Government Report About Foreign Spies in U.S.
Aired June 03, 2005 - 06:00 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.
VALERIE MORRIS, CNN ANCHOR: It's Friday, June 3, and somebody in a faraway place is keeping an eye on America's secrets.
DAYBREAK starts right now.
Espionage in the age of technology. Information moves so fast. But is it falling into the wrong hands?
Plus, preparing a king for a road trip.
And a heads up for I-Pod customers. You may have some money coming back to you.
ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.
MORRIS: Good morning, everyone.
I'm Valerie Morris in for Carol Costello this morning.
Also ahead this morning, war crimes a decade old. A newly released videotape of some gruesome killings could send some soldiers to jail.
But first, now in the news, Israeli security sources telling CNN that Syria test fired three SCUD missiles last week. Sources say the Israeli government monitored the test firings of one SCUD B and two SCUD D missiles.
Defense Secretary Donald Rumsfeld is in Singapore for a major conference on security and terrorism in Asia. The nuclear threat in North Korea is expected to be a main topic of discussion.
The U.S. Embassy in Indonesia is warning Americans of a threat to bomb hotels in Jakarta, where Westerners stay. The embassy itself just reopened Tuesday after being closed for several days following an unspecified security threat.
In Laguna Beach, California, many landslide victims are returning home to assess the damage. Roughly 100 of the 350 homes affected are severely damaged or in imminent danger. An unusually wet winter, it's being blamed for the slide.
And when we talk winter or summer or spring or any weather, Chad, it's on you. So keep giving us some good news as this weekend approaches. CHAD MYERS, CNN METEOROLOGIST: Yes, Valerie. You know those landslides out there, those mud slides were very odd because it's been almost 28 days since they've had any rainfall whatsoever. You'd think that water is now gone, it's run away, it's run off, it's evaporated. But not so. One of the worst landslides in that area actually happened after a very wet winter. The landslide didn't happen until October. So we may have more stories like this as the summer goes on.
(WEATHER REPORT)
MORRIS: This just in to CNN. U.S. and Iraqi forces have been engaged in ongoing operations against the insurgency in Iraq.
CNN's Jane Arraf joins us right now live by video phone with the latest on a sweep near the Syrian border -- Jane.
JANE ARRAF, CNN CORRESPONDENT: Valerie, we've just landed by helicopter here in the northwestern desert in Iraq, where they have increased numbers of troops, U.S. troops, almost doubled them, as they're reporting more tanks, armored fighting vehicles, search helicopters and attack helicopters to try to attack what they believe is a major source of the problem here, the continued attacks in Iraq on an area ranging all the way up to the Syrian border.
Troops from the 3rd Armored Calvary Regiment from Fort Carlson, Colorado are fanning out, surrounding towns and trying to find out whether there are, indeed, insurgents in these towns, and if there are, capturing or killing them.
Now, this is part of this ongoing attempt across parts of Iraq to crack down on the insurgency. Military officials believe a major part of this problem still is foreign fighters who are coming across that Syrian border -- Valerie.
MORRIS: Jane Arraf in Iraq.
Jane, thank you so much for always keeping us up to date.
Meantime, in "Security Watch," the eagle. It's a powerful x-ray imaging system. It's online this morning at the U.S. Port of Maryland. The $6 billion screener can quickly detect possible concealed weapons or irradiated cargo. It was unveiled less than two weeks after a scathing government report criticized the lack of standardized inspections.
The FAA insists passengers flying in and out of New York are not at risk. Air traffic controllers had claimed that overtime cuts caused an increasing number of close calls in the skies. Instead, an FAA audit blames the controllers' union for sloppy scheduling, scheduling designed to maximize overtime pay.
(BEGIN VIDEO CLIP)
BRUCE JOHNSON, VICE PRESIDENT, FAA TERMINAL SERVICES: In 2004, the inspector general and the Department of Transportation found that employees at the New York Tracon were manipulating the work schedule and using sick leave and annual leave to inflate overtime payments and engaging in questionable workman's compensation claims.
As a result of the I.G. report, management began to take actions to curtail the abuses.
(END VIDEO CLIP)
MORRIS: The FAA contends the New York facility got double the overtime of any other facility in the country.
Stay tuned to CNN day and night for the most up to date information on your security.
If you thought the cloak and dagger days of the cold war were gone, you're wrong. A new government report says spies from all over the world are coming to America and leaving with our secrets.
CNN national security correspondent David Ensor reports.
(BEGIN VIDEO TAPE)
DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): Foreign spies from nearly 100 different nations sought to steal sensitive U.S. technology last year, the U.S. intelligence community report says, and exacted a significant cost to this country. Much of it is industrial espionage, made easier, says the report's author, by modern technology.
DEAN CARVER, AUTHOR, U.S. INTEL REPORT AUTHOR: I think the big change is in how easy it is now to get at this information and how easy it is to store it, how easy it is to walk out with it.
ENSOR: At General Motors, because of security concerns, camera phones are not allowed. Top targets for economic spies are high tech sensors, electronics, aeronautics and information systems. The report does not name names, but officials say the thieves include citizens of Russia, India, Pakistan, Iran, Japan, France, Israel, and above all by far, China.
CARVER: We realize we can't compete with China head to head on labor costs. It's our innovation and our research and development that allows us to compete. And if that is stolen and is available to Chinese companies at little or no cost, then, of course, for our competitiveness that's a problem.
ENSOR: Arrests happen almost every week, officials say, including two Chinese-born Americans arrested at San Francisco Airport now awaiting trial. They were carrying, officials say, sensitive trade secrets from four different Silicon Valley high tech companies. At a recent conference, FBI officials reached out to others for help.
DAVID SZADY, FBI COUNTERINTELLIGENCE DIVISION: How are we going to stop all that? We're not. But what we need to do is get together with you, get together with the military, get together with the owners, get together with the developers and say, how can we put a counterintelligence umbrella around this before it is stolen so that when they ping on it, we know it? ENSOR (on camera): The report says economic spies are sometimes able to obtain commercially valuable data by making e-mail or fax requests of naive American companies. Losses range from national security secrets to valuable American jobs.
David Ensor, CNN, Washington.
(END VIDEO TAPE)
MORRIS: There's still no sign of an Alabama teenager, a young girl missing in Aruba. Natalee Holloway was on vacation with graduating classmates, but didn't show up for a flight home Monday. Police and the military have mounted an all out search on the tiny Caribbean island.
The girl's mother rushed to Aruba to help.
(BEGIN VIDEO CLIP) BETH HOLLOWAY TWITTY, MOTHER: She was seen leaving Carlos and Charlie at approximately 1:30 a.m. Monday morning. And her -- she was here on a senior trip. And there were approximately, I don't know, there could have been 20 to 40 of her classmates in Carlos and Charlie's periodically, but at least 10 of them saw her leave in a small four door car, not sure of the make, bluish gray color. And there were three locals in the car with her.
(END VIDEO CLIP)
MORRIS: Natalee Holloway's family is offering a reward for her safe return.
The Michael Jackson molestation case could go to the jury today. That jury has been sitting through testimony for 14 weeks now. And as soon as the attorneys finish up their closing arguments, then deliberations can begin.
CNN's Kareen Wynter is in Santa Maria, California to bring us up to seeped -- Kareen.
KAREEN WYNTER, CNN CORRESPONDENT: Valerie, good morning to you.
Inside a packed courtroom yesterday, the prosecution and defense painted completely different pictures of Jackson and the family at the center of these sexual allegations.
(BEGIN VIDEO TAPE)
WYNTER (voice-over): A coached con artist or innocent cancer survivor abused by a famous entertainer? These conflicting views summed up the defense and prosecution cases Thursday in the Michael Jackson child molestation trial.
In closing arguments, Deputy District Attorney Ron Zonan first went on the attack, calling the singer a predator who took advantage of his teenage accuser and lured him "into the world of the forbidden" for his own sexual pleasure. RONALD RICHARDS, LEGAL ANALYST: I think this case is so close that no one can walk out of court guessing what's in the minds of those jurors, because they're just sitting there listening to the same stuff they've heard over and over again. At the end of the day, they're going to have to take a gut check and determine whether or not they've been convinced beyond a reasonable doubt.
WYNTER: The prosecution tried to soften the defense's claim the accuser's mother was the greedy force behind the sexual allegations. Zonan told jurors there was no evidence the mother ever asked for a penny from the pop star.
The defense came back swinging. Jackson's lead attorney, Thomas Mesereau, told jurors the boy's family wants to cash in on the case. As he put it, "Ready to pounce with a conviction so they could pursue a civil suit.
JEAN ROSENBLUM, LEGAL ANALYST: Both of them are doing a very good job focusing on what they need the jury to focus on to either get a conviction or an acquittal.
WYNTER: Mesereau also argued the state failed to present any physical evidence to back up the boy's claims that Jackson molested him.
(END VIDEO TAPE)
WYNTER: When asked how he was holding up, asked by reporters as he left the courthouse, Jackson responded, "OK."
Now, closing arguments continue this morning. The defense will have less than two hours to wrap up its side before the prosecution gets the last word -- Valerie, the case could be in the hands of jurors later today.
MORRIS: And a quick question to you, Kareen.
We talk about 14 weeks of testimony. Are the deliberations expected to be expedient or also to be protracted? They have a lot of stuff to consider.
WYNTER: A big question that's been raised many times this week. Some legal experts weighed in and said they believe jurors have already made up their mind, the fact that, as you mentioned, more than 13 weeks of testimony, that they know where they stand in this ruling. Others say, as evidenced by yesterday, there are still many complex issues that remain, evidence, testimony, that these jurors still have to sort through and that it could take several days -- Valerie.
MORRIS: Kareen Wynter in Santa Maria, California.
Thanks so much.
Other "Stories Across America" this Friday morning, in Arizona, a 14-year-old boy is in critical condition after police shoot him top a stolen bulldozer. Investigators say the boy took the tractor from a construction site and went on a rampage, knocking down utility poles. Police chased the teen 15 miles before shooting him as he drove toward them.
An update now on a killing spree in Richmond, Virginia. Police arrested David Bowler for the three murders that took place within 15 minutes of each other. Police say Bowler allegedly held a personal grudge against all three victims and the killings were not hate crimes.
A woman taken hostage for more than 20 hours survives the ordeal, but not her alleged captor. Indiana police say they're uncertain if the 34-year-old suspect shot himself or was killed when police stormed the convenience store.
The Georgia woman now called the runaway bride-to-be made it to a courthouse, but it wasn't to say I do. Instead, Jennifer Wilbanks tearfully pleaded no contest to charges of faking her own abduction. Wilbanks disappeared just days before her April wedding. She surfaced days later in New Mexico, claiming she had been abducted. An audiotape of the conversation with her fiance was released yesterday.
(BEGIN AUDIO CLIP)
JENNIFER WILBANKS: (INAUDIBLE).
JOHN MASON: Are you sure you're not in Duluth?
WILBANKS: No, I'm not in Duluth.
MASON: Are you in Georgia?
WILBANKS: I don't know.
MASON: OK. It's OK, sweetie. It's OK. We're just trying to figure out how to come find you.
WILBANKS: (INAUDIBLE) and they cut my hair.
MASON: They cut your hair?
WILBANKS: Yes.
MASON: And that's all they did to you?
WILBANKS: Yes.
MASON: Well, that's great.
WILBANKS: It was a man and a woman.
MASON: It was a man and a woman?
WILBANKS: It was a Hispanic man and a Caucasian woman.
(END AUDIO CLIP)
MORRIS: As part of the plea deal, Wilbanks has been sentenced to two years probation and 120 hours of community service.
Still to come this hour, King Tut returns to America, but it's no easy process moving royal remains around the world.
And he may be Hollywood royalty, but is Tom Cruise acting a little too bizarre during blockbuster season?
And later, the stars of the spelling universe converge on the nation's capital. We're going to be speaking to one of the best about what it takes to make it on the spelling stage.
But first, here's a look at what else is making news this Friday morning.
(COMMERCIAL BREAK)
MORRIS: After more than three decades at home in Egypt, King Tut is returning to America. But moving him, well, moving him back is certainly a painstaking process.
"Life" magazine documented the details of packing the 131 items.
Journalist Johnny Dwyer watched the nine day process and wrote about it for "Life" magazine.
Good morning.
Good to see you.
JOHNNY DWYER, "LIFE" MAGAZINE: Good morning.
Thanks for having me.
MORRIS: What a fabulous experience.
DWYER: Yes, it was wonderful. It was wonderful.
MORRIS: What was it like just to even watch this packing process, which had to be extremely detailed and meticulous?
DWYER: It was awesome and tense. I mean, the team working there was composed of Germans, Americans and the Egyptians. And their responsibility was massive.
MORRIS: When we look at Tut and coming to America, what created this? Because it's been a long time since he's been here.
DWYER: It actually almost didn't happen. It required an act of parliament by the Egyptian government to get this to come to the states. In 1981, an object was damaged in Germany at the end of its long world tour. So Tut was to not travel. But that was reversed. So, luckily, it's here this year.
MORRIS: It's here this year and I shared with you the fact that when it was here the last time, which was back in, what, the late '70s? DWYER: Yes, '76 to '79.
MORRIS: I'm starting to date myself, but I remember covering that and it was so amazing because the antiquities are just things that people read about but just can't believe are actually there.
Talk a little bit about the process of actually packing and shipping.
DWYER: It's a meticulous process. I mean I likened it to a Hollywood production. The Egyptians ran the show. They were directing every minute details -- how to hold an object, where to place it, then ultimately how to seal it into these almost sarcophagus like crates.
MORRIS: So really it was almost like they cut so many detailed things that it was a sarcophagus almost on top of a sarcophagus?
DWYER: Yes, yes.
MORRIS: Very good.
DWYER: They hand sculpted the actual linings for every object. So they rendered each object in relief. It was amazing to see.
MORRIS: It seems like each time we have the opportunity to talk about King Tut, it's still this old thing, it is the curse. It is about how he died.
What's the latest with regard to that, the death of this young prince, this magnificent young man, who we have seen a lot about? But modern technology has afforded us an opportunity to get a better idea of what really happened to him.
DWYER: Well, we've learned a lot about Tut this year. A C.T. scan was brought into his tomb, in the Valley of Kings, in January. That allowed us to determine, A, he wasn't murdered. He was actually -- he died from an infection that resulted from a broken leg. And then following that, we were able to render his face. Three independent teams came up with remarkably similar renderings. And then, if you look in the magazine, you'll see that what they found is very similar to some of the busts that we've shown.
MORRIS: Before I let you go, just quickly, this is a fairly limited tour, apparently, that's going to happen, and not necessarily in major cities.
Where will the exhibit be?
DWYER: It's four cities. It starts in L.A. on the 26th. It will also be in Chicago, Philadelphia and Fort Lauderdale.
MORRIS: And perhaps cities to be added along the way, we hope?
DWYER: Yes, we hope.
MORRIS: All right, Johnny Dwyer, "Life" magazine, thank you so much.
DWYER: Hey, thank you for having me.
MORRIS: I'm envious. The pictures are magnificent, though.
Still to come on DAYBREAK, from risky business to risky behavior, will the latest antics from Tom Cruise affect his box office draw?
Hey, folks, it's Friday. We'll dish about it with Tom O'Neil.
But first, as we go to a break, a look at how the international markets are trading this morning.
(COMMERCIAL BREAK)
MORRIS: Normally on Fridays, DAYBREAK takes a look at the movies hitting the theaters for the weekend. But this morning, no, no, no. We're going to take a look at a film not yet in theaters, or, more specifically, the strange behavior of its star, Tom Cruise.
"War of the Worlds" is getting a lot of attention before it hits the theaters. And it kind of makes you wonder if the old saying is true that all publicity is good publicity.
CNN's Anderson Cooper has more.
(BEGIN VIDEO TAPE)
ANDERSON COOPER, CNN CORRESPONDENT (voice-over): The movie is called "War of the Worlds," in case you were wondering. See, you might have missed that despite the star's seemingly endless television interviews. All the talk about Tom Cruise and his - well, some call it his bizarre behavior -- started with the visit to "Oprah" last week. Oprah saw Cruise jump, Cruise pump, Cruise climb on the furniture. Then there was that Katie moment.
(BEGIN VIDEO CLIP FROM "OPRAH")
TOM CRUISE, ACTOR: I'm in love. I'm in love.
(END VIDEO CLIP)
COOPER: Now, they actually did talk a bit about the movie.
(BEGIN VIDEO CLIP FROM "OPRAH")
CRUISE: Don't we have "War of the Worlds," too?
OPRAH WINFREY: Yes, we're going to do that. You're going to do that.
(END VIDEO CLIP)
COOPER: But you never would have known it from the press coverage of Tom's tour. Even the late night comics talked about Cruise in a light that was, well, less than flattering. (BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)
JON STEWART, TV SHOW HOST: Tom Cruise went on TV and declared his love for declaring his love. And I think in many respects scared the (EXPLETIVE DELETED) out of America.
(END VIDEO CLIP)
COOPER: And there's that seemingly endless speculation that this new relationship may be less about romance and more about hype.
B.J. SIEGESMUND, "U.S. WEEKLY" MAGAZINE: But most of it has to do with the fact that these two Hollywood actors came together at the beginning of the summer in which they both have major blockbusters about to come out. But, at the same time, Tom and Katie do maintain that they are in love, it's all real, and they are happy, happy, happy together.
COOPER: Of course, like any good Hollywood hotshot, Tom Cruise didn't just promote his picture on "Oprah," he went on "Access Hollywood," too, where he talked a lot about Scientology. He then took his onetime costar Brooke Shields to task for treating her postpartum depression with drugs, something Scientology strictly forbids.
CRUISE: Now, she doesn't know what these drugs are.
COOPER: But could this new effusiveness have the film's producers a little concerned?
STEVEN SPIELBERG, DIRECTOR: And I just hope that Tom will say a little bit about "War of the Worlds" and you just don't obsess about Tom and Katie, Katie and Tom.
COOPER: When you pull in $20 million plus a picture and your pictures often pull in nine figures, you get a bit more leeway from the studios. Still, they'd probably be a lot happier if their stars would just stick to the scripts.
(END VIDEO TAPE)
MORRIS: That was Anderson Cooper reporting.
But now, for more on the antics of America's biggest star, we turn to "In Touch Weekly" editor Tom O'Neil.
OK, Tom, what's your take on this behavior, Tom Cruise and his new love?
TOM O'NEIL, "IN TOUCH WEEKLY": This is the real Tom Cruise that we're seeing here. Startling as it is, the pretty boy isn't too pretty. The biggest blunder that he has made in his career occurred last year when he fired Pat Kingsley, who's head of PMK, one of the most powerful talent agencies and P.R. firms anywhere. And Pat Kingsley, the head of it, is a dragon controller who kept Tom in his cage for all these years. We didn't hear about the Scientology and meanwhile he became this mysterious, alluring star that was unattainable to moviegoers.
MORRIS: OK, so he drops her and has his sister in place?
O'NEIL: His sister has taken over. And now "The Soho Shopping News" can get an interview with Tom Cruise and he's not talking about the movie, he's talking -- he's pushing his romance and his religion on us. And they both look ridiculous.
MORRIS: Just a quick thumbs up, thumbs down, do you believe the romance is for real?
O'NEIL: No, not one bit. No.
MORRIS: And according to the polls, the public doesn't really believe it, no?
O'NEIL: And the vast majority of Americans don't believe it either.
MORRIS: OK.
Let's make Spielberg happy, because he said he hopes that people can talk about other things beyond that.
I want to talk about his movies, though. I mean this "Mission Impossible 3,m" is this potentially being compromised by crazy Tom, your words, not mine?
O'NEIL: Very much so, because there's $130 million at stake here. This is a film that Tom has held up for years while he's been a co-producer fussing with issues like casting. Now it's finally set to go forward in the middle of July and Paramount is saying we don't know if America is going to want to see Tom Cruise again soon.
MORRIS: America may also not like the fact that he has taken on Brooke Shields for what is a serious problem.
O'NEIL: That's his worst, Valerie. That's his worst. He's being mean to a mommy. You know, one of the tenets of Scientology is that psychiatry, both in terms of doctor therapy and medication, is bad for you. And who is Tom Cruise to be attacking somebody...
MORRIS: Pretty (INAUDIBLE).
O'NEIL: ... who took some anti-depressant drug during postpartum depression. This is foolish of his.
MORRIS: Well, it's also a very real thing, I mean. And what I have read and heard, it makes it appear as if postpartum depression is just whatever it is, get over it. Deal with it.
O'NEIL: Yes. He said you could treat it with vitamins. Also, he's dismissing her as a has been. Now, we know how hard it is for women over 40 to get good parts in Hollywood. This over 40 guy should watch out.
MORRIS: Wow!
A $100 million "Mission Impossible 3" on hold?
O'NEIL: Maybe.
MORRIS: My goodness.
Tom O'Neil, thanks.
O'NEIL: Thanks.
MORRIS: Good to see you.
Still to come in the last half hour of DAYBREAK, I-Pod customers who were charged up about their battery's bang for the buck get some redemption.
(COMMERCIAL BREAK)
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Aired June 3, 2005 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
VALERIE MORRIS, CNN ANCHOR: It's Friday, June 3, and somebody in a faraway place is keeping an eye on America's secrets.
DAYBREAK starts right now.
Espionage in the age of technology. Information moves so fast. But is it falling into the wrong hands?
Plus, preparing a king for a road trip.
And a heads up for I-Pod customers. You may have some money coming back to you.
ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.
MORRIS: Good morning, everyone.
I'm Valerie Morris in for Carol Costello this morning.
Also ahead this morning, war crimes a decade old. A newly released videotape of some gruesome killings could send some soldiers to jail.
But first, now in the news, Israeli security sources telling CNN that Syria test fired three SCUD missiles last week. Sources say the Israeli government monitored the test firings of one SCUD B and two SCUD D missiles.
Defense Secretary Donald Rumsfeld is in Singapore for a major conference on security and terrorism in Asia. The nuclear threat in North Korea is expected to be a main topic of discussion.
The U.S. Embassy in Indonesia is warning Americans of a threat to bomb hotels in Jakarta, where Westerners stay. The embassy itself just reopened Tuesday after being closed for several days following an unspecified security threat.
In Laguna Beach, California, many landslide victims are returning home to assess the damage. Roughly 100 of the 350 homes affected are severely damaged or in imminent danger. An unusually wet winter, it's being blamed for the slide.
And when we talk winter or summer or spring or any weather, Chad, it's on you. So keep giving us some good news as this weekend approaches. CHAD MYERS, CNN METEOROLOGIST: Yes, Valerie. You know those landslides out there, those mud slides were very odd because it's been almost 28 days since they've had any rainfall whatsoever. You'd think that water is now gone, it's run away, it's run off, it's evaporated. But not so. One of the worst landslides in that area actually happened after a very wet winter. The landslide didn't happen until October. So we may have more stories like this as the summer goes on.
(WEATHER REPORT)
MORRIS: This just in to CNN. U.S. and Iraqi forces have been engaged in ongoing operations against the insurgency in Iraq.
CNN's Jane Arraf joins us right now live by video phone with the latest on a sweep near the Syrian border -- Jane.
JANE ARRAF, CNN CORRESPONDENT: Valerie, we've just landed by helicopter here in the northwestern desert in Iraq, where they have increased numbers of troops, U.S. troops, almost doubled them, as they're reporting more tanks, armored fighting vehicles, search helicopters and attack helicopters to try to attack what they believe is a major source of the problem here, the continued attacks in Iraq on an area ranging all the way up to the Syrian border.
Troops from the 3rd Armored Calvary Regiment from Fort Carlson, Colorado are fanning out, surrounding towns and trying to find out whether there are, indeed, insurgents in these towns, and if there are, capturing or killing them.
Now, this is part of this ongoing attempt across parts of Iraq to crack down on the insurgency. Military officials believe a major part of this problem still is foreign fighters who are coming across that Syrian border -- Valerie.
MORRIS: Jane Arraf in Iraq.
Jane, thank you so much for always keeping us up to date.
Meantime, in "Security Watch," the eagle. It's a powerful x-ray imaging system. It's online this morning at the U.S. Port of Maryland. The $6 billion screener can quickly detect possible concealed weapons or irradiated cargo. It was unveiled less than two weeks after a scathing government report criticized the lack of standardized inspections.
The FAA insists passengers flying in and out of New York are not at risk. Air traffic controllers had claimed that overtime cuts caused an increasing number of close calls in the skies. Instead, an FAA audit blames the controllers' union for sloppy scheduling, scheduling designed to maximize overtime pay.
(BEGIN VIDEO CLIP)
BRUCE JOHNSON, VICE PRESIDENT, FAA TERMINAL SERVICES: In 2004, the inspector general and the Department of Transportation found that employees at the New York Tracon were manipulating the work schedule and using sick leave and annual leave to inflate overtime payments and engaging in questionable workman's compensation claims.
As a result of the I.G. report, management began to take actions to curtail the abuses.
(END VIDEO CLIP)
MORRIS: The FAA contends the New York facility got double the overtime of any other facility in the country.
Stay tuned to CNN day and night for the most up to date information on your security.
If you thought the cloak and dagger days of the cold war were gone, you're wrong. A new government report says spies from all over the world are coming to America and leaving with our secrets.
CNN national security correspondent David Ensor reports.
(BEGIN VIDEO TAPE)
DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): Foreign spies from nearly 100 different nations sought to steal sensitive U.S. technology last year, the U.S. intelligence community report says, and exacted a significant cost to this country. Much of it is industrial espionage, made easier, says the report's author, by modern technology.
DEAN CARVER, AUTHOR, U.S. INTEL REPORT AUTHOR: I think the big change is in how easy it is now to get at this information and how easy it is to store it, how easy it is to walk out with it.
ENSOR: At General Motors, because of security concerns, camera phones are not allowed. Top targets for economic spies are high tech sensors, electronics, aeronautics and information systems. The report does not name names, but officials say the thieves include citizens of Russia, India, Pakistan, Iran, Japan, France, Israel, and above all by far, China.
CARVER: We realize we can't compete with China head to head on labor costs. It's our innovation and our research and development that allows us to compete. And if that is stolen and is available to Chinese companies at little or no cost, then, of course, for our competitiveness that's a problem.
ENSOR: Arrests happen almost every week, officials say, including two Chinese-born Americans arrested at San Francisco Airport now awaiting trial. They were carrying, officials say, sensitive trade secrets from four different Silicon Valley high tech companies. At a recent conference, FBI officials reached out to others for help.
DAVID SZADY, FBI COUNTERINTELLIGENCE DIVISION: How are we going to stop all that? We're not. But what we need to do is get together with you, get together with the military, get together with the owners, get together with the developers and say, how can we put a counterintelligence umbrella around this before it is stolen so that when they ping on it, we know it? ENSOR (on camera): The report says economic spies are sometimes able to obtain commercially valuable data by making e-mail or fax requests of naive American companies. Losses range from national security secrets to valuable American jobs.
David Ensor, CNN, Washington.
(END VIDEO TAPE)
MORRIS: There's still no sign of an Alabama teenager, a young girl missing in Aruba. Natalee Holloway was on vacation with graduating classmates, but didn't show up for a flight home Monday. Police and the military have mounted an all out search on the tiny Caribbean island.
The girl's mother rushed to Aruba to help.
(BEGIN VIDEO CLIP) BETH HOLLOWAY TWITTY, MOTHER: She was seen leaving Carlos and Charlie at approximately 1:30 a.m. Monday morning. And her -- she was here on a senior trip. And there were approximately, I don't know, there could have been 20 to 40 of her classmates in Carlos and Charlie's periodically, but at least 10 of them saw her leave in a small four door car, not sure of the make, bluish gray color. And there were three locals in the car with her.
(END VIDEO CLIP)
MORRIS: Natalee Holloway's family is offering a reward for her safe return.
The Michael Jackson molestation case could go to the jury today. That jury has been sitting through testimony for 14 weeks now. And as soon as the attorneys finish up their closing arguments, then deliberations can begin.
CNN's Kareen Wynter is in Santa Maria, California to bring us up to seeped -- Kareen.
KAREEN WYNTER, CNN CORRESPONDENT: Valerie, good morning to you.
Inside a packed courtroom yesterday, the prosecution and defense painted completely different pictures of Jackson and the family at the center of these sexual allegations.
(BEGIN VIDEO TAPE)
WYNTER (voice-over): A coached con artist or innocent cancer survivor abused by a famous entertainer? These conflicting views summed up the defense and prosecution cases Thursday in the Michael Jackson child molestation trial.
In closing arguments, Deputy District Attorney Ron Zonan first went on the attack, calling the singer a predator who took advantage of his teenage accuser and lured him "into the world of the forbidden" for his own sexual pleasure. RONALD RICHARDS, LEGAL ANALYST: I think this case is so close that no one can walk out of court guessing what's in the minds of those jurors, because they're just sitting there listening to the same stuff they've heard over and over again. At the end of the day, they're going to have to take a gut check and determine whether or not they've been convinced beyond a reasonable doubt.
WYNTER: The prosecution tried to soften the defense's claim the accuser's mother was the greedy force behind the sexual allegations. Zonan told jurors there was no evidence the mother ever asked for a penny from the pop star.
The defense came back swinging. Jackson's lead attorney, Thomas Mesereau, told jurors the boy's family wants to cash in on the case. As he put it, "Ready to pounce with a conviction so they could pursue a civil suit.
JEAN ROSENBLUM, LEGAL ANALYST: Both of them are doing a very good job focusing on what they need the jury to focus on to either get a conviction or an acquittal.
WYNTER: Mesereau also argued the state failed to present any physical evidence to back up the boy's claims that Jackson molested him.
(END VIDEO TAPE)
WYNTER: When asked how he was holding up, asked by reporters as he left the courthouse, Jackson responded, "OK."
Now, closing arguments continue this morning. The defense will have less than two hours to wrap up its side before the prosecution gets the last word -- Valerie, the case could be in the hands of jurors later today.
MORRIS: And a quick question to you, Kareen.
We talk about 14 weeks of testimony. Are the deliberations expected to be expedient or also to be protracted? They have a lot of stuff to consider.
WYNTER: A big question that's been raised many times this week. Some legal experts weighed in and said they believe jurors have already made up their mind, the fact that, as you mentioned, more than 13 weeks of testimony, that they know where they stand in this ruling. Others say, as evidenced by yesterday, there are still many complex issues that remain, evidence, testimony, that these jurors still have to sort through and that it could take several days -- Valerie.
MORRIS: Kareen Wynter in Santa Maria, California.
Thanks so much.
Other "Stories Across America" this Friday morning, in Arizona, a 14-year-old boy is in critical condition after police shoot him top a stolen bulldozer. Investigators say the boy took the tractor from a construction site and went on a rampage, knocking down utility poles. Police chased the teen 15 miles before shooting him as he drove toward them.
An update now on a killing spree in Richmond, Virginia. Police arrested David Bowler for the three murders that took place within 15 minutes of each other. Police say Bowler allegedly held a personal grudge against all three victims and the killings were not hate crimes.
A woman taken hostage for more than 20 hours survives the ordeal, but not her alleged captor. Indiana police say they're uncertain if the 34-year-old suspect shot himself or was killed when police stormed the convenience store.
The Georgia woman now called the runaway bride-to-be made it to a courthouse, but it wasn't to say I do. Instead, Jennifer Wilbanks tearfully pleaded no contest to charges of faking her own abduction. Wilbanks disappeared just days before her April wedding. She surfaced days later in New Mexico, claiming she had been abducted. An audiotape of the conversation with her fiance was released yesterday.
(BEGIN AUDIO CLIP)
JENNIFER WILBANKS: (INAUDIBLE).
JOHN MASON: Are you sure you're not in Duluth?
WILBANKS: No, I'm not in Duluth.
MASON: Are you in Georgia?
WILBANKS: I don't know.
MASON: OK. It's OK, sweetie. It's OK. We're just trying to figure out how to come find you.
WILBANKS: (INAUDIBLE) and they cut my hair.
MASON: They cut your hair?
WILBANKS: Yes.
MASON: And that's all they did to you?
WILBANKS: Yes.
MASON: Well, that's great.
WILBANKS: It was a man and a woman.
MASON: It was a man and a woman?
WILBANKS: It was a Hispanic man and a Caucasian woman.
(END AUDIO CLIP)
MORRIS: As part of the plea deal, Wilbanks has been sentenced to two years probation and 120 hours of community service.
Still to come this hour, King Tut returns to America, but it's no easy process moving royal remains around the world.
And he may be Hollywood royalty, but is Tom Cruise acting a little too bizarre during blockbuster season?
And later, the stars of the spelling universe converge on the nation's capital. We're going to be speaking to one of the best about what it takes to make it on the spelling stage.
But first, here's a look at what else is making news this Friday morning.
(COMMERCIAL BREAK)
MORRIS: After more than three decades at home in Egypt, King Tut is returning to America. But moving him, well, moving him back is certainly a painstaking process.
"Life" magazine documented the details of packing the 131 items.
Journalist Johnny Dwyer watched the nine day process and wrote about it for "Life" magazine.
Good morning.
Good to see you.
JOHNNY DWYER, "LIFE" MAGAZINE: Good morning.
Thanks for having me.
MORRIS: What a fabulous experience.
DWYER: Yes, it was wonderful. It was wonderful.
MORRIS: What was it like just to even watch this packing process, which had to be extremely detailed and meticulous?
DWYER: It was awesome and tense. I mean, the team working there was composed of Germans, Americans and the Egyptians. And their responsibility was massive.
MORRIS: When we look at Tut and coming to America, what created this? Because it's been a long time since he's been here.
DWYER: It actually almost didn't happen. It required an act of parliament by the Egyptian government to get this to come to the states. In 1981, an object was damaged in Germany at the end of its long world tour. So Tut was to not travel. But that was reversed. So, luckily, it's here this year.
MORRIS: It's here this year and I shared with you the fact that when it was here the last time, which was back in, what, the late '70s? DWYER: Yes, '76 to '79.
MORRIS: I'm starting to date myself, but I remember covering that and it was so amazing because the antiquities are just things that people read about but just can't believe are actually there.
Talk a little bit about the process of actually packing and shipping.
DWYER: It's a meticulous process. I mean I likened it to a Hollywood production. The Egyptians ran the show. They were directing every minute details -- how to hold an object, where to place it, then ultimately how to seal it into these almost sarcophagus like crates.
MORRIS: So really it was almost like they cut so many detailed things that it was a sarcophagus almost on top of a sarcophagus?
DWYER: Yes, yes.
MORRIS: Very good.
DWYER: They hand sculpted the actual linings for every object. So they rendered each object in relief. It was amazing to see.
MORRIS: It seems like each time we have the opportunity to talk about King Tut, it's still this old thing, it is the curse. It is about how he died.
What's the latest with regard to that, the death of this young prince, this magnificent young man, who we have seen a lot about? But modern technology has afforded us an opportunity to get a better idea of what really happened to him.
DWYER: Well, we've learned a lot about Tut this year. A C.T. scan was brought into his tomb, in the Valley of Kings, in January. That allowed us to determine, A, he wasn't murdered. He was actually -- he died from an infection that resulted from a broken leg. And then following that, we were able to render his face. Three independent teams came up with remarkably similar renderings. And then, if you look in the magazine, you'll see that what they found is very similar to some of the busts that we've shown.
MORRIS: Before I let you go, just quickly, this is a fairly limited tour, apparently, that's going to happen, and not necessarily in major cities.
Where will the exhibit be?
DWYER: It's four cities. It starts in L.A. on the 26th. It will also be in Chicago, Philadelphia and Fort Lauderdale.
MORRIS: And perhaps cities to be added along the way, we hope?
DWYER: Yes, we hope.
MORRIS: All right, Johnny Dwyer, "Life" magazine, thank you so much.
DWYER: Hey, thank you for having me.
MORRIS: I'm envious. The pictures are magnificent, though.
Still to come on DAYBREAK, from risky business to risky behavior, will the latest antics from Tom Cruise affect his box office draw?
Hey, folks, it's Friday. We'll dish about it with Tom O'Neil.
But first, as we go to a break, a look at how the international markets are trading this morning.
(COMMERCIAL BREAK)
MORRIS: Normally on Fridays, DAYBREAK takes a look at the movies hitting the theaters for the weekend. But this morning, no, no, no. We're going to take a look at a film not yet in theaters, or, more specifically, the strange behavior of its star, Tom Cruise.
"War of the Worlds" is getting a lot of attention before it hits the theaters. And it kind of makes you wonder if the old saying is true that all publicity is good publicity.
CNN's Anderson Cooper has more.
(BEGIN VIDEO TAPE)
ANDERSON COOPER, CNN CORRESPONDENT (voice-over): The movie is called "War of the Worlds," in case you were wondering. See, you might have missed that despite the star's seemingly endless television interviews. All the talk about Tom Cruise and his - well, some call it his bizarre behavior -- started with the visit to "Oprah" last week. Oprah saw Cruise jump, Cruise pump, Cruise climb on the furniture. Then there was that Katie moment.
(BEGIN VIDEO CLIP FROM "OPRAH")
TOM CRUISE, ACTOR: I'm in love. I'm in love.
(END VIDEO CLIP)
COOPER: Now, they actually did talk a bit about the movie.
(BEGIN VIDEO CLIP FROM "OPRAH")
CRUISE: Don't we have "War of the Worlds," too?
OPRAH WINFREY: Yes, we're going to do that. You're going to do that.
(END VIDEO CLIP)
COOPER: But you never would have known it from the press coverage of Tom's tour. Even the late night comics talked about Cruise in a light that was, well, less than flattering. (BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)
JON STEWART, TV SHOW HOST: Tom Cruise went on TV and declared his love for declaring his love. And I think in many respects scared the (EXPLETIVE DELETED) out of America.
(END VIDEO CLIP)
COOPER: And there's that seemingly endless speculation that this new relationship may be less about romance and more about hype.
B.J. SIEGESMUND, "U.S. WEEKLY" MAGAZINE: But most of it has to do with the fact that these two Hollywood actors came together at the beginning of the summer in which they both have major blockbusters about to come out. But, at the same time, Tom and Katie do maintain that they are in love, it's all real, and they are happy, happy, happy together.
COOPER: Of course, like any good Hollywood hotshot, Tom Cruise didn't just promote his picture on "Oprah," he went on "Access Hollywood," too, where he talked a lot about Scientology. He then took his onetime costar Brooke Shields to task for treating her postpartum depression with drugs, something Scientology strictly forbids.
CRUISE: Now, she doesn't know what these drugs are.
COOPER: But could this new effusiveness have the film's producers a little concerned?
STEVEN SPIELBERG, DIRECTOR: And I just hope that Tom will say a little bit about "War of the Worlds" and you just don't obsess about Tom and Katie, Katie and Tom.
COOPER: When you pull in $20 million plus a picture and your pictures often pull in nine figures, you get a bit more leeway from the studios. Still, they'd probably be a lot happier if their stars would just stick to the scripts.
(END VIDEO TAPE)
MORRIS: That was Anderson Cooper reporting.
But now, for more on the antics of America's biggest star, we turn to "In Touch Weekly" editor Tom O'Neil.
OK, Tom, what's your take on this behavior, Tom Cruise and his new love?
TOM O'NEIL, "IN TOUCH WEEKLY": This is the real Tom Cruise that we're seeing here. Startling as it is, the pretty boy isn't too pretty. The biggest blunder that he has made in his career occurred last year when he fired Pat Kingsley, who's head of PMK, one of the most powerful talent agencies and P.R. firms anywhere. And Pat Kingsley, the head of it, is a dragon controller who kept Tom in his cage for all these years. We didn't hear about the Scientology and meanwhile he became this mysterious, alluring star that was unattainable to moviegoers.
MORRIS: OK, so he drops her and has his sister in place?
O'NEIL: His sister has taken over. And now "The Soho Shopping News" can get an interview with Tom Cruise and he's not talking about the movie, he's talking -- he's pushing his romance and his religion on us. And they both look ridiculous.
MORRIS: Just a quick thumbs up, thumbs down, do you believe the romance is for real?
O'NEIL: No, not one bit. No.
MORRIS: And according to the polls, the public doesn't really believe it, no?
O'NEIL: And the vast majority of Americans don't believe it either.
MORRIS: OK.
Let's make Spielberg happy, because he said he hopes that people can talk about other things beyond that.
I want to talk about his movies, though. I mean this "Mission Impossible 3,m" is this potentially being compromised by crazy Tom, your words, not mine?
O'NEIL: Very much so, because there's $130 million at stake here. This is a film that Tom has held up for years while he's been a co-producer fussing with issues like casting. Now it's finally set to go forward in the middle of July and Paramount is saying we don't know if America is going to want to see Tom Cruise again soon.
MORRIS: America may also not like the fact that he has taken on Brooke Shields for what is a serious problem.
O'NEIL: That's his worst, Valerie. That's his worst. He's being mean to a mommy. You know, one of the tenets of Scientology is that psychiatry, both in terms of doctor therapy and medication, is bad for you. And who is Tom Cruise to be attacking somebody...
MORRIS: Pretty (INAUDIBLE).
O'NEIL: ... who took some anti-depressant drug during postpartum depression. This is foolish of his.
MORRIS: Well, it's also a very real thing, I mean. And what I have read and heard, it makes it appear as if postpartum depression is just whatever it is, get over it. Deal with it.
O'NEIL: Yes. He said you could treat it with vitamins. Also, he's dismissing her as a has been. Now, we know how hard it is for women over 40 to get good parts in Hollywood. This over 40 guy should watch out.
MORRIS: Wow!
A $100 million "Mission Impossible 3" on hold?
O'NEIL: Maybe.
MORRIS: My goodness.
Tom O'Neil, thanks.
O'NEIL: Thanks.
MORRIS: Good to see you.
Still to come in the last half hour of DAYBREAK, I-Pod customers who were charged up about their battery's bang for the buck get some redemption.
(COMMERCIAL BREAK)
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