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CNN Live At Daybreak

California Earthquake; Leaving Iraq; Iran Elections

Aired June 17, 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: It is Friday, June 17. For the second time in three days, California is hit by an earthquake. The rumbling off northern California is the fourth moderate to large quake since Sunday.
Also, enough is enough. Some members of Congress say they want a timetable for getting U.S. troops out of Iraq.

And in Iran, voters make a critical choice for a new leader. How does this election affect you? We'll ask Christiane Amanpour.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

COSTELLO: And good morning to you. We'll have more on the California quake in just a minute.

Also ahead, we'll meet American siblings who are making a difference with street kids in Russia. It's a story you will not want to miss.

And later, Christmas in June. Are you tired of seeing those festive lights hanging in your neighbor's yard? If one woman has her way, it could soon be outlawed.

But first, "Now in the News," less than three hours ago, another earthquake off northern California. It was a magnitude 6.6 but not strong enough to require a tsunami warning.

Iranians are voting today on a new president. This is Iran's supreme leader Ayatollah Ali Khameini casting his ballot. Opinion polls show former president Akbar Hashemi Rafsanjani is likely heading for a runoff. Washington calls the election unfair.

A rare meeting in North Korea. North Korean leader Kim Jong-il met today with South Korea's unification minister. The North Korean leader rarely meets with officials from other nations.

And strong winds across Oklahoma. A wall blown over at this car wash in Major County. At least one tornado reported. Also, winds of up to 75 miles an hour caused some damage, but no injuries.

And a developing story CNN is following at this hour. Actor Tom Cruise said he has proposed to girlfriend Katie Holmes. It happened early today at the Eiffel Tower. Speaking at a Paris news conference, alongside Holmes, who was wearing an outsized ring, Cruise said, "Yes, I proposed to her. It was early this morning at the Eiffel Tower, so I haven't slept at all."

We just had to get that in -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Isn't that special?

COSTELLO: They held a news conference to announce it.

MYERS: When did he meet her?

COSTELLO: About seven weeks ago.

MYERS: Perfect.

COSTELLO: It's the perfect amount of time to become engaged.

MYERS: Of course.

COSTELLO: I'm sure their marriage will be successful.

MYERS: Eight weeks.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Hey, stick around, because a lot of people are wondering what's going on with these earthquakes off the West Coast.

MYERS: Yes.

COSTELLO: Four since Sunday. We want to get more on the one that hit overnight.

David Applegate is with us. He's with the U.S. Geological Survey.

Good morning. David, are you there?

DAVID APPLEGATE, U.S. GEOLOGICAL SURVEY: Yes, I am.

COSTELLO: Oh, good. You scared me for just a second there.

Why so many earthquakes?

APPLEGATE: Well, the one that we just had a few hours ago is an aftershock from the -- the other northern California earthquake that was offshore and that led to the tsunami warning. This is a magnitude 6.6, so it's a bit smaller than the previous one, and located quite close by to it.

COSTELLO: It's still a pretty major shake, though, isn't it?

APPLEGATE: Well, it is indeed. When we have an earthquake as big as the one we had two days ago, we generally expect to see aftershocks. This is a particularly large one. It was relatively light shaking onshore just because it was located over 120 miles offshore.

MYERS: David, this is Chad Myers up in the weather center. I have a question for you. I'd like you explain how the logarithmic function works of this 6.6 to 7.2, how every dot that you get, every point you get is actually another magnitude higher, another times higher. How does that work.

APPLEGATE: Well, that's right. This is -- this is a scale where, from a magnitude 7 to a magnitude 8, we're looking at a 10 times larger earthquake. And, in fact, if you look at it in terms of the amount of energy that's released, it's a factor of 33.

So that means the magnitude 7 is 33 times more energy released than a magnitude 6. And indeed, a magnitude 7 is a thousand times more energy released than a magnitude 5. That gives you a sense of just how big that magnitude 9 was on December 26.

MYERS: Absolutely.

COSTELLO: Wow. You know, these earthquakes have happened offshore. Should California be preparing for an earthquake to hit on land now, especially if the aftershocks keep coming?

APPLEGATE: Well, there certainly is that possibility. We've had some earthquake activity, although smaller earthquakes down in southern California. That's many hundreds of miles away and on a different fault system. But California certainly is earthquake country, and it's always good to be prepared.

COSTELLO: Always good -- you know, it's funny, Californians just don't seem to be phased by these earthquakes, of course we on the East Coast aren't used to them. Thank you. David Applegate from the U.S. Geological Survey joining DAYBREAK this morning.

Now to the fight for Iraq. Some congressmen have picked a timetable for when that fight should end. A bipartisan bill in the House calls for President Bush to have a plan for troop withdrawals in place for the end of the year. They're also calling for the troops to actually start coming home for good by October of next year.

Supporters of the resolution say an exit strategy is an important step for the American public.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: After 1,700 deaths, over 12,000 wounded, and $200 billion spent, we believe it is time to have this debate and this discussion on this resolution.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

REP. DENNIS KUCINICH (D), OHIO: And for the first time, a bipartisan group of members of Congress worked together to craft a binding resolution to bring the troops home. And our partnership reflects a shifting mood in Congress caused by daily reports of more Americans dead in a war with no end in sight. Now, our bill says enough.

(END VIDEO CLIP)

COSTELLO: President Bush has said before that a troop withdrawal would come as soon as Iraqi forces are able to take over their own security. And the administration says the best way to honor the troops is to finish the mission.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: The stakes are very high in Iraq. I think no matter where you stood on the decision to go to war, that most Americans can agree that succeeding in Iraq is critical to our safety and security. It would be absolutely the wrong message to send to set some sort of artificial timetable. It would be the wrong message to send to the terrorists, it would be the wrong message to send to the Iraqi people, and it would be the wrong message to send to our troops.

(END VIDEO CLIP)

COSTELLO: The former Marine commander in Iraq, Lieutenant General James Conway, echoes the administration's stance. He says any timetable would allow the insurgents to simply "wait us out."

Former President Bill Clinton echoed that sentiment during an appearance on "Late Night With David Letterman." Listen.

(BEGIN VIDEO CLIP)

WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: And I don't think the American people should give up on it. And I don't think the president is wrong not to set a date certain for withdrawal. Because if you set a date certain for withdrawal, it's like waving a red flag to all the adversaries, all the opponents to the regime, all the opponents of democracy, hold out, don't make a deal, don't compromise, you know, just wait for the Americans to leave.

(END VIDEO CLIP)

COSTELLO: And while the withdrawal debate continues, the House is also considering spending more money for actions in Iraq and Afghanistan. A vote is planned for Monday on a spending bill worth $45 billion. Democrats are debating whether to add an amendment to that bill that gives President Bush 30 days to tell Congress what it will take to bring the troops home.

But that question remains, what happens when U.S. troops finally do pull out of Iraq? That's one of those questions that can't be answered until it happens. And even looking back at history doesn't necessarily help to paint a clear picture.

CNN National Correspondent Bruce Morton puts things in perspective for us.

(BEGIN VIDEOTAPE)

BRUCE MORTON, CNN CORRESPONDENT (voice-over): Getting into war is easy. Japan bombs Pearl Harbor, the U.S. invades Iraq, whatever. Getting out is much harder.

World War II was straightforward. The allies said Nazi Germany and Japan had to surrender unconditionally. And they did. The last time it was that simple.

The Korean War never ended with a formal peace treaty. The United Nations forces and the North Koreans and their Chinese allies arranged an armistice, a truce still in effect more than half a century later.

In Vietnam, Congress was split over the war just as this Congress is split over Iraq. Two senators, Republican John Sherman Cooker of Kentucky and Democrat Frank Church of Idaho offered up an amendment cutting off funds for the war. That failed. Troops were there, after all. But it showed how divide the Congress and country were.

One wise old Republican George Aiken of Vermont said, the U.S. should declare victory and leave. The trouble was, everyone was pretty sure that if the U.S. left, the communist north would win. Lyndon Johnson didn't want to be the first president to lose a war, neither did Richard Nixon.

Nixon did negotiate a settlement, the U.S. troops came home. And by the time the North Vietnamese captured Saigon and won the war, Gerald Ford was president.

Iraq is a little like that. Everyone is pretty sure that if the U.S. leaves we won't like what happens next, probably a civil war. The insurgency is alive and well, it killed 80 U.S. troops and more than 700 Iraqis last month. And "The New York Times" reports today the difficulty our soldiers have. "We have a finite number of troops," one officer says. "You can pacify an area, but if you leave, the insurgents come right back." The U.S. doesn't have enough troops to keep order everywhere.

So in a sense, we're stuck. Most Americans polls say would like to leave but how? Can we train enough Iraqi troops to keep the peace? Maybe. Some day. But that certainly hasn't happened yet.

Bruce Morton, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Despite that, a bipartisan group of House members called on President Bush this week to start planning for a U.S. withdrawal from Iraq. The White House says President Bush will sharpen his focus on the war in upcoming public appearances, but the group says it's time for Congress to start talking about an exit strategy.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We're not here to assess blame, get involved in recriminations or accusations. We believe the troops have done everything that they can do from a military point of view.

(END VIDEO CLIP)

COSTELLO: And the congressional plan calls for the withdrawal to begin by October 1, 2006. And that brings us to our DAYBREAK e-mail "Question of the Morning."

MYERS: It certainly does. We want to know what you think. Is there some other option out there that we're not thinking of? Should there be a timetable for troop withdrawal from Iraq?

Go to -- e-mail us at DAYBREAK@CNN.com. There's your question, should there be a timetable for a troop withdrawal from Iraq -- Carol.

COSTELLO: Oh, I can't wait to hear what people are thinking about that this morning. DAYBREAK@CNN.com.

Gallantry and honor. A female soldier from Tennessee is being cited with the nation's third highest medal for valor, the first for a woman since World War II.

Twenty-three-year-old Sergeant Leigh Ann Hester of the Kentucky National Guard has received the Silver Star for her actions during an ambush in March. Hester and two other soldiers counterattacked.

The citation says Hester's actions saved the lives of several convoy members. The other two soldiers were awarded Silver Stars.

Another woman armed services member is in the spotlight as well. The Air Force has named Captain Nicole Malachowski to the famous Thunderbirds flying team. Malachowski is a 1996 graduate of the Air Force Academy. She makes her debut with the Thunderbirds next March.

There she is.

Coming up, children by the thousands live on the streets in Russia. Against insurmountable odds, an American brother and sister fight for at least some of those lost boys. Ryan Chilcote takes us to the streets in 13 minutes.

China operates the most sophisticated Internet censorship in the world. You might be surprised what American company helps them do it. Maggie Lake has that story in 32 minutes.

And it's June, for Pete's sakes, so why are Christmas decorations like these still on display? A local Illinois politician wants to know. We'll talk to her in 42 minutes.

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

(COMMERCIAL BREAK) COSTELLO: Let's get a quick check of the international markets now. Japan's Nikkei closes up 98 points, posting its sixth straight day of gains. Britain's FTSE is up 12. And the German DAX is up nearly 10 points.

I kind of feel like noshing now after that music.

Your news, money, weather and sports. It's 5:16 Eastern. Here's what's all new this morning.

U.S. and Iraqi forces launch a new offensive near the Syrian border today. The military says Operation Spear is designed to disrupt an insurgent and foreign fighter stronghold near the village of Karbala -- Karrabilah (ph), I should say.

Another shaker in California. A 6.6 magnitude quake rattled the ocean floor off the coast of northern California about three hours ago. It was located about 125 miles west of Eureka.

In money news, the government settled its stolen identity case with BJ's Wholesale Club. Lax security had been blamed for thousands of BJ's customers having their credit and debit card numbers stolen. BJ's has agreed to tighten security and will undergo a 20-year audit process.

In culture, Tom Hanks' production company plans to make a movie about Mark Felt, you know, Deep Throat. Felt also has a book deal. The book could hit bookstores by early next year.

In sports, the Detroit Pistons evened up the NBA finals by thumping the San Antonio Spurs. The Pistons' 102-71 win was the biggest blowout in the finals since Michael Jordan's last title game back in 1998 -- Chad.

MYERS: I don't know what it is about that hardwood up there in Auburn Hills, but they're tough to beat up there.

(WEATHER REPORT)

COSTELLO: Thank you, Chad.

MYERS: Yes.

COSTELLO: That's a look at the latest headlines for you this morning.

Iran is holding presidential elections today. Given Iran's nuclear ambitions, the stakes in this election are high. To explain, Chief International Correspondent Christiane Amanpour joins us live from a polling station in Tehran.

Hello, Christiane.

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Carol, we're at a mobile polling station. In fact, the group behind have voted, and the actual mobile unit has dispersed. We've been going to a couple of these polling stations. Some of them are in schools, some of them are in mosques. And we've noticed what may be a lower-than-usual turnout. That's what authorities at the actual stations are telling us. But we are going to be waiting, obviously, to see what happens. Generally, it picks up towards the end of the day.

Turnout is important, because this regime, the Islamic Republic, has always used a usually heavy turnout at presidential elections to legitimize its -- its government here. So if it's a low turnout, they're not going to like that.

The supreme leader, the Ayatollah Khameini, cast his vote today, and he's been calling all along for a high turnout to basically tell the world that this is a democratic country. But people, as you know, before this election campaign, and before the actual day today, had said that they may boycott the votes because there's a lot of alienating.

They feel alienated, they feel somewhat apathetic, they feel that the candidates don't meet their requirements or their demands. And most importantly, many people are not happy that the candidates are handpicked by a group, the Guardian Council, which itself is not elected. So it's a very carefully screened group of candidates.

Having said that, those who say they are going to vote have told us that they're going to vote, some of them have told us, for the previous president, Hashemi Rafsanjani. Why? Because they think that he has the power and the experience to try to actually deliver on their demands.

What people want is a better economy, they want more freedoms, more democracy, the kinds of things they had hoped they would get under the reformist president, Mohammed Khatami, over the last eight years. But they've seen that the hard-lined conservatives, mostly the unelected bodies, have prevented him from implementing his program. So they're -- they're frustrated with that.

Having said that, people do say they are going to vote for the reformist candidate, Mostafa Moin. So it looks like it could shape down between -- in a two-way race between Rafsanjani and Moin. And it may go to an unprecedented second round a week from today.

So we're not quite sure about that. But certainly, all the candidates, whether they be hard-lined conservative or reformist, have recreated themselves in the image of democrats and reformists. They have basically taken the language of Mohammed Khatami, which is now an established dialogue here.

They're using the language of reform. Basically, nobody mentions Islam. They talk about reform and democracy and meeting the demands of the young people.

So all the candidates have (INAUDIBLE) TV commercials, all their campaign commercials towards the young people. Whether it works we'll wait and see, and hopefully have that news later on. Back to you, Carol.

COSTELLO: We hope so. Christiane Amanpour live in Tehran, Iran, this morning.

Still to come on DAYBREAK, the heartbreaking stories of street kids in Russia and two Americans who are trying to change the fate of these children.

You are watching DAYBREAK for a Friday.

(COMMERCIAL BREAK)

COSTELLO: A reminder to you. Our e-mail "Question of the Morning," should there be a timeline for troops to withdrawal from Iraq? A lot of controversy about that right now. Tell us what you think. DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.

We've all seen the movies and pictures of street kids in different parts of the world. Those are stories of lost hope and broken dreams. But now some street children in Russia are getting those dreams back thanks to two dedicated volunteers.

CNN's Ryan Chilcote has their story.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice-over): It's Friday afternoon at the Center for Social Adaptation. Two dozen or so children rounded up by the police who don't like wild kids running around loose.

Instead, Jared Markoff is there to offer them an alternative. Without him, many of the kids will end up back on Russia's streets or in its orphanages, psychiatric wards, or even jails.

In 1996, Jared and sister Christina Greenberg, son and daughter of a California missionary, moved half way around the world to the Russian city of Perm. Eight winters later, they are still hunting down street kids in Perm's underworld of sewers, basements and drug dens.

This is a glue house. For just 50 cents, 10 kids can sniff enough glue to keep them high for an evening. With prices like that, nearly all the kids do it.

With the offer of a hot meal, Jared gets the kids to follow him out of the drug dens. The trick, to get the kids heads into fun and games. All of them come with their own dark stories.

Slava's story I find the most remarkable. He followed a familiar path to the streets.

CHRISTINA GREENBERG, LOVE'S BRIDGE: When his mom found a new boyfriend who started beating him and started beating his mother and started drinking a lot, he started running away and living on the streets.

CHILCOTE: At 12, Slava fell victim to abuse again. This time at the hands of predators.

"I was little and I met some older guys. They took photos of me in an apartment. They told me they'd give me money," Slava says.

"I was there for a week. They wouldn't let me go. There were three of them and another boy. They sent the photos to Moscow and sold them."

GREENBERG: He started coming to our daycare center, and we realized that he really wanted to make a change, that he wanted to stop sniffing glue, and that he really didn't like his life on the streets. So we took him into our full-time shelter. Slava started going to school, making progress.

CHILCOTE: The men who held him were convicted after Slava refused a $4,000 bribe from them not to testify.

It doesn't always turn out well. Jared and some of the kids have come to this cemetery. They are searching, but not for someone to take back to the shelter.

JARED MARKOFF, LOVE'S BRIDGE: Eurena (ph) was 11 years old when she died. She was found hung inside one of Perm's sewers.

So today, Siata (ph) and Larisa (ph), two of Eurena's (ph) friends, came here to the cemetery to look for her grave. And after two hours of looking they finally found it.

So we've been able to save several hundred kids from the streets, but I would say about eight of the children I know personally have died.

CHILCOTE: After eight years, Christina and Jared have learned to measure success in small victories.

GREENBERG: A lot of the kids that we knew five years ago, even if they're not yet studying or they're not yet living in a permanent home, they've made leaps and bounds of progress. I consider progress when a kid washes up every day.

CHILCOTE: But in a year they plan to turn their shelters over to the Russian staff. They've achieved a lot here, but worry that without them and the donors they work with, it could disappear.

Still, they are people of faith. They believe somehow it will work out. They also believe that with love, the evil in these children's lives can be overcome.

(END VIDEOTAPE)

CHILCOTE: Carol, no one knows for sure exactly how many Russian kids are out on the street here. But the government acknowledges that they believe that at least 700,000 Russian children are on the street. Many people here fear the number could be much higher, perhaps in the millions. But at least in the city of Perm that number isn't rising, in no small part thanks to, of course, Christina and Jared's shelters there.

They say that about 400 kids over the last eight years have gone through those shelters. And it's a very tough line of work, but they say that about a third of those kids can be described as success stories. Something major has changed in their life for the better.

A lot of the kids, they simply don't know what's happened to them. They lose touch. They hope that that's for the best, that they found homes to live in, that they've returned to their families. But it's a very obviously difficult job.

As for Slava, he's the child that was sexually abused. He's doing very well. He's still at the shelter. And just over the last few months, they found an American sponsor for him who's paying for his education -- Carol.

COSTELLO: You know I was just going to ask you that, if Americans want to help, what can they do?

CHILCOTE: Well they can of course help Love's Bridge. That's the organization that Christina and Jared set up. It's still very active in that city. They have a Web site. And so you can go to that site and there are ways to help them. It's very important. Really, what they are doing is quite unique throughout Russia.

And what they would like to do is take some of the experience that they have gained in the city of Perm and share that with nonprofit organizations that are springing up in other cities. Perhaps to try and make this more of a Russian homegrown movement to try and help these kids -- Carol.

COSTELLO: Organization is called Love's Bridge, Love's Bridge, L-O-V-E-S B-R-I-D-G-E.

CHILCOTE: Love's Bridge.

COSTELLO: Thank you. Ryan Chilcote reporting live from Russia this morning.

CHILCOTE: That's correct.

COSTELLO: We're going to take a break. We'll be back with much more on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you, welcome to the second half- hour of DAYBREAK.

Coming up in the next 30 minutes, in America you can pretty much post anything you want on a blog, but in China it is a whole different story. Words like freedom and democracy are no-nos. We'll go live to China for a look. And why don't people take down their Christmas decorations after the holidays? Why are they still up in June? We'll talk to one woman who wants overdue decorations banned.

But first, "Now in the News."

Iranians are voting today for a new president. The stakes are high because of strained ties with the West over Iran's nuclear program. None of the seven candidates is expected to get an outright majority, so a run-off is likely.

U.S. and Iraqi forces launch a new operation designed to root out insurgents near the Syrian border. Operation Spear is centered in the village of Karabilah. That's the same village where Marines fought insurgents a week ago.

Yet another earthquake rattles northern California. The 6.6 magnitude quake struck about three hours ago off the coast of northern California. That's some 125 miles west of Eureka.

Good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

That's about 30 miles from where the big one was on Wednesday. So we talked to the U.S.G.S. earlier. They said that was really just an aftershock of the one that was out there, which was a 7.2. But there you go. And it's the full moon, and that helps pull the earth apart, just like it makes bigger tides.

(WEATHER REPORT)

Carol, back to you.

COSTELLO: Thank you, Chad.

A new poll is not very flattering to President Bush or to Congress, for that matter. "The New York Times"-CBS Poll gives the president a 42 percent approval rating. That's down from a 51 percent rating in November. The poll is of 1,100 adults. It was taken June 10 through the 15th. Fifty-one percent of the respondents disapprove of the way the president is handling his job.

Asked about Iraq, nearly 60 percent say things are going badly, while one in three give the president a thumbs up for the way he's handling the war. In February, it was 45 percent.

Asked about the direction of the country, just about a third of the respondents say it's going in the right direction, 61 percent say wrong direction, Mr. President. The poll's margin of error is plus or minus 3 percentage points.

Tapping your phones, snooping into what you check out of the library and what books you buy, all at the center of the debate on the Patriot Act and the lengths government should go to catch a terrorist. Now there's word of a possible compromise. A group of homeland security experts have sent his proposals to Attorney General Alberto Gonzales and congressional leaders. It's quite a commotion over what the Fed should be able to do, the powers they'll have or continue to have. We'll keep you posted.

New York takes a hit in Congress. The House Appropriations Committee voted to take back about $125 million in unspent aid for the 9/11 attacks. The money was to cover the costs of dealing with claims from ground zero construction and recovery workers. And, as you can imagine, New York lawmakers are not so happy about this.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: Let me ask the president, why would your administration take money away from these people? You've come to New York and you've called them heroes. It is not fair a few years later to pull the rug out from under them.

(END VIDEO CLIP)

COSTELLO: The panel did vote to let the city keep $44 million in worker compensation funds.

In other news "Across America" now, no one hurt when this Goodyear blimp went limp several miles from its home base in Pompano Beach, Florida. Bad weather may be to blame for the accident. The pilot of the "Stars & Stripes" airship was trying to make an emergency landing when the blimp crashed into power lines.

Rescuers are scrambling to save hundreds of birds that have been caught in an oil spill off the Louisiana coast. The oil came from an offshore rig in the Gulf of Mexico that was abandoned during Tropical Storm Arlene. Bird rescuers from as far away as Delaware and California are in Louisiana to help.

This follow-up report, a California father and son are indicted in a terror case. A federal grand jury in California indicted the pair on charges they lied to the FBI about the son attending Pakistani terrorist training camps. The Pakistani-born father and his son were arrested last week on similar charges. Their lawyer says the government's case is weak since the two don't face terrorist-related charges.

Still to come on DAYBREAK, we'll head live to China where words like democracy and freedom will soon be banned from blogs.

And don't forget our e-mail "Question of the Morning," should there be a timeline for troops to withdrawal from Iraq? Tell us what you think, DAYBREAK@CNN.com.

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

(COMMERCIAL BREAK)

COSTELLO: Our Jane Arraf is embedded with U.S. troops. They are taking part in Operation Spear. And whenever she calls in, we get right to her. So let's do that right now to see what's happening there.

Jane, hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Carol, we are on the edge of Karabilah, possibly about (INAUDIBLE). This battle has been going on for some hours. And what it is is the Marines trying to crack down on what they believe are (ph) foreign fighters' safe haven. They believe that more than 100 foreign fighters are holed up in this city. It's about a town of -- a city of about 60,000 people close to the Syrian border.

And from where we stand, we have been hearing and seeing explosions, as well as firing from Huey helicopters with sounds like mortars. We know there was gunfire earlier. The initial report we had was that at least three suspected insurgents have been killed and the fighting is still going on -- Carol.

COSTELLO: I just wanted to ask you, I know there were 1,000 U.S. troops and some Iraqi security forces involved in Operation Spear. How many insurgents do you think are out there?

ARRAF: The significant thing about this city, Carol, is that it is believed, essentially, to be taken over, taken hostage, if you will, by insurgents, and even more significantly, foreign fighters. It's very close to the Syrian border. And it's hard to tell exactly how many insurgents (INAUDIBLE) possibly be several hundred. And impossible to tell, until we get there, which we hope to in the next little while. What's happening to the civilians in the city as well?

The Marines (INAUDIBLE) left (INAUDIBLE) possibly launch (INAUDIBLE) what they said (INAUDIBLE) -- Carol.

COSTELLO: Jane, we're losing your transmission, Jane.

As you might imagine, it's difficult to get a live shot out of any part of Iraq, really. But, really, she is traveling. So we'll try to get back to Jane Arraf as soon as she can.

But again, Operation Spear now ongoing. U.S. forces and Iraqi security forces trying to root out insurgents in the Al Anbar Province, which is right on the Syrian border in northwestern Iraq.

Let's get right to our e-mail segment now -- Chad.

MYERS: Carol, here is the question. We had all this hullabaloo yesterday about should there be a timetable for withdrawal from Iraq? And that is our "Question of the Day." We have had some phenomenal answers. And, actually, yes and nos. Kind of going 50/50 maybe, maybe a little less one way or the other.

But I'll tell you, from R.N. (ph) in Dallas, we must stay the course in Iraq and finish the job. The term exit strategy is a foreign concept. There should not be a timetable for withdrawal. That would play into the hands of the insurgents. Those who would have us remove our troops before the job is done and undermine our nation's blood sacrifice in Iraq are traitors, in my opinion -- Carol. COSTELLO: I like this one from Rhonda (ph) in Arizona. She says, no, I don't think there should be a timetable for troop withdrawal. Better yet, ask the troops if they want to abandon their efforts. Ask them if they're willing to kiss away all their hard work should they withdrawal too early. Ask them if they are willing to let their fallen troops die in vein should they be brought home too early and it was all for nothing.

MYERS: Greg (ph) in Johnson City says you know we shouldn't have an exit strategy, but we should have some kind of victory strategy -- Carol.

COSTELLO: Victory strategy, I like that, yes.

Let's see, a timetable for U.S. troops should be made now. Terrorists are all over the world. It is impossible for us to hunt them all down. Our country's efforts to curb terrorism need to be concentrated within our borders and do our best to keep them out of our country.

MYERS: And I got one from Robert (ph) in Atlanta, timetables are not the solution here to get away -- go around the real issue. The U.S. Americans must realize that there may be no end to this war ever and that this war started long before all of us were born.

COSTELLO: I just want to read one more from Pete (ph). He says there can be a timetable or there can be a draft. The Army doesn't have the people to continue the present level of troops and the present level of troops has proven inadequate to maintain order.

So keep those e-mails coming, DAYBREAK@CNN.com. And we'll read some more later. Thank you.

A recent report by the Open Net Initiative found that China operates the most extensive, technologically sophisticated and broad- reaching system of Internet filtering in the world. So how do they do it?

As CNN's Maggie Lake reports, with the help of American know-how and American products.

(BEGIN VIDEOTAPE)

MAGGIE LAKE, CNN CORRESPONDENT (voice-over): In China, Internet users must choose their words carefully. Government controls on what's available online are getting even tighter. As of June 30, Web site owners must register with authorities or lose their license and face fines.

The government is also requiring Western companies to actively censor information that flows through their search and blog sites.

Beijing Internet users on Microsoft's MSN space who try to search the phrase democracy get a warning message that says, "The title entered must not include prohibited language. Please input another title." Users had similar experiences when they tried other search engines.

Media watchdogs are concerned that by cooperating with censorship, U.S. companies are putting profits ahead of ethics.

TALA DOWLATSHAHI, REPORTERS WITHOUT BORDERS: If Microsoft is a U.S.-based company and is allowed to set up portals for Web bloggers within the United States, which anyone can speak about any issue, then that same policy, that same ethical principle should be exercised abroad and overseas.

LAKE: Microsoft, Yahoo! and eBay say it is their company's policy to abide by the regulations of each country they operate in.

Observers say censorship in China is a complicated issue that has companies stuck between a rock and a hard place.

JONATHAN ZITTRAIN, HARVARD UNIVERSITY: A company wanting to do business in China, I think without being unethical or hypocritical, can genuinely decide that they have services to offer, that, over the long haul, will be freedom enhancing. And if they have to jump through a couple hoops at the outset, it's better for everybody that they do so.

LAKE: At 94 million and growing, China has the world's second largest population of Internet users. Many are easily able to circumvent the existing government controls. By simply typing a comma in the word "freedom," a user in Beijing was able to complete her search. A similar technique works for other words as well. Text messaging also gets around the sensors.

For now, these evasion techniques allow users to stay one step ahead of the censors, but critics say the Chinese government won't back off.

ZITTRAIN: There's enough surveillance going on that somebody who stands on top of a virtual tank and utters the wrong words could actually find him or herself going to jail.

LAKE: A step that could have a chilling effect on freedom on the Internet.

Maggie Lake, CNN, New York.

(END VIDEOTAPE)

COSTELLO: For more on Web surfing from China, let's go live right now to CNN's Stan Grant. He's in Beijing.

So, Stan, is it possible to get past the censorship?

STAN GRANT, CNN CORRESPONDENT: It's kind of cat and mouse, isn't it, Carol? Really it's all about information and the flow of information that's seen here as suspect. Information is seen as dangerous. We are regularly blacked out on CNN if we mention sensitive issues in our stories. Like I guarantee you this conversation we're having now is being blacked out as we speak here in China.

When it comes to the Internet, it's shot through with holes this. There are so many anomalies. We talked about MSN spaces. Now that is a Web blog service. If you put the wrong word in there, what they deem to be the wrong word, human rights, democracy, freedom, it simply won't allow you. It will say that those words are forbidden.

Similarly, though, if you go to a Chinese bulletin page or a Chinese blog service, sometimes you can actually enter those words there and they will stay there. It's the same thing with search engines. You can go to various search engines and search for democracy, search for freedom, and, yes, those searches will be successful. The problem is when you go to access the hits that you've found you simply can't open them.

You can also search, there are ways around it, by searching on Chinese Web sits, Yahoo! China or Google China. If you enter the word not in Chinese characters but in English, you can sometimes get a hit. And you can sometimes even open that.

It's really a struggle here as the government tries to grab hold of the flow of information in China as it continues to expand. As we heard there in Maggie's package, almost 100,000 Internet users, 300,000-plus mobile phone users. Information is spreading very, very quickly.

To the government, it's like wrestling with a column of smoke, Carol. The next step is to actually introduce Internet police. We're hearing now in Beijing 4,000 Internet police being trained. Hundreds of them will be let loose in Internet cafes around the city -- Carol.

COSTELLO: Unbelievable. I know Maggie Lake said you could go to jail if you're caught, but expound on that. What could happen if someone is caught using an improper word on a blog?

GRANT: Well it depends exactly what you're saying and what your aim is. Yes, people have gone to jail for that. Internet cafes, Internet sites have been closed. We know that journalists have gone to jail. There are a couple of cases at the moment of journalists being imprisoned as a result of stories they have done that the government believed were too sensitive or they believed were acting against China's interests, being seen as traitors or spies. So, yes, the price you can pay can be very high.

But as information becomes more readily available, more accessible, more and more people use it, you're continuing to stretch the boundaries in China to test the government. And the government, at the same time, as I said before, wrestling with this column of smoke, trying to get hold of it and making sure that they can maintain control over information they deem to be dangerous -- Carol.

COSTELLO: Stan Grant live from Beijing this morning.

Still to come on DAYBREAK, I know it's not the most important story, but Christmas lights in June. Aren't you tired of looking at your neighbor's Christmas decorations? Don't you want them to take them down? Up next, we take you to one woman in Illinois who is taking matters into her own hands.

(COMMERCIAL BREAK)

COSTELLO: So here it is mid-June and we ask you this question, and we know it's not an important question, but we just must ask, are Santa and his eight tiny reindeer still decorating your house? Somewhere in the city, actually, somewhere in New Jersey there are decorations still up, because one of our -- Rob, one of our camera people.

Rob, where?

ROB, CNN CAMERAMAN: Long Island.

COSTELLO: Long Island. His neighbor's decorations have been up for two years now.

Let's head, though, to Aurora, Illinois. Alderwoman Juany Garza is canvassing her constituents. Actually, she would like to put a canvas over Christmas decorations left up all year. Alderwoman Garza joins us live now.

Good morning.

JUANY GARZA, ALDERWOMAN: Good morning.

COSTELLO: Why is this such an important issue to you?

GARZA: Because we hear it in our work committee every month. So the work committee, we're talking making Memorial Day weekend. And we try to decorate a community with the flag, American flags and all that, you know. And so we're thinking how would it help to do with these people that still have their Christmas ornaments.

So we decide to knock on the doors and say nay it's not Christmas no more, so they'll go, and so we have to celebrate Memorial Day weekend. So we didn't have no answers. Some people working, I don't know, they don't open the doors. So we decide to make letter. So we send the letter. It's an invitation to take them down because there are lights and there are still (INAUDIBLE) in all the seasons.

COSTELLO: OK, so just so people understand, you put notes or you sent notes to people who still have their Christmas decorations up in June.

GARZA: Exactly, yes.

COSTELLO: Have you gotten any response?

GARZA: A lot of response. I'm so happy.

COSTELLO: So did they take the Christmas decorations down?

GARZA: Yes. Yes, they take them down.

COSTELLO: So it's sort of like shaming them into taking the Christmas decorations down?

GARZA: Well, yes, because when I'm explaining this letter, this is a flag (ph) in our community. So I take the pride of the community and every person living in Aurora. So the reaction (ph) to do it is not good, succumbs the value of the properties and all that.

COSTELLO: Is there any penalty that the city can assess for people leaving their Christmas decorations up?

GARZA: Not yet. Not yet.

COSTELLO: But you're planning something?

GARZA: Yes, we're planning to having an ordinance. In the future is what we're planning, probably next year, we want to have a stipulation in case they're still hanging up to 60 days after the holidays.

COSTELLO: Interesting. And what would be the penalty?

GARZA: Well the first time the one that sent the letter, then no one come (ph). The second letter, they want to send it with a $50 catch (ph). So when the people open the bill in the packets, they don't like it.

COSTELLO: No, I would say not. But at least your efforts right now are working. And we appreciate you joining us this morning, Alderwoman Juany Garza from Aurora, Illinois, because I know it's an hour earlier there. We appreciate it.

Some "Health Headlines" for you now.

Four Massachusetts hospitals will investigate exposure to tuberculosis. Authorities say a female surgeon was contagious for six months. TB wasn't confirmed until Monday, so hundreds of patients and staff may have been exposed. But officials say 90 percent of TB infections cannot be spread to other people.

A heart failure drug specifically for African-Americans has moved closer to U.S. approval. A medical advisory panel has endorsed the first medicine for patients of one particular race. The FDA will now consider the panel's recommendation.

You are watching DAYBREAK for a Friday.

(COMMERCIAL BREAK)

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Aired June 17, 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: It is Friday, June 17. For the second time in three days, California is hit by an earthquake. The rumbling off northern California is the fourth moderate to large quake since Sunday.
Also, enough is enough. Some members of Congress say they want a timetable for getting U.S. troops out of Iraq.

And in Iran, voters make a critical choice for a new leader. How does this election affect you? We'll ask Christiane Amanpour.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

COSTELLO: And good morning to you. We'll have more on the California quake in just a minute.

Also ahead, we'll meet American siblings who are making a difference with street kids in Russia. It's a story you will not want to miss.

And later, Christmas in June. Are you tired of seeing those festive lights hanging in your neighbor's yard? If one woman has her way, it could soon be outlawed.

But first, "Now in the News," less than three hours ago, another earthquake off northern California. It was a magnitude 6.6 but not strong enough to require a tsunami warning.

Iranians are voting today on a new president. This is Iran's supreme leader Ayatollah Ali Khameini casting his ballot. Opinion polls show former president Akbar Hashemi Rafsanjani is likely heading for a runoff. Washington calls the election unfair.

A rare meeting in North Korea. North Korean leader Kim Jong-il met today with South Korea's unification minister. The North Korean leader rarely meets with officials from other nations.

And strong winds across Oklahoma. A wall blown over at this car wash in Major County. At least one tornado reported. Also, winds of up to 75 miles an hour caused some damage, but no injuries.

And a developing story CNN is following at this hour. Actor Tom Cruise said he has proposed to girlfriend Katie Holmes. It happened early today at the Eiffel Tower. Speaking at a Paris news conference, alongside Holmes, who was wearing an outsized ring, Cruise said, "Yes, I proposed to her. It was early this morning at the Eiffel Tower, so I haven't slept at all."

We just had to get that in -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Isn't that special?

COSTELLO: They held a news conference to announce it.

MYERS: When did he meet her?

COSTELLO: About seven weeks ago.

MYERS: Perfect.

COSTELLO: It's the perfect amount of time to become engaged.

MYERS: Of course.

COSTELLO: I'm sure their marriage will be successful.

MYERS: Eight weeks.

Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Hey, stick around, because a lot of people are wondering what's going on with these earthquakes off the West Coast.

MYERS: Yes.

COSTELLO: Four since Sunday. We want to get more on the one that hit overnight.

David Applegate is with us. He's with the U.S. Geological Survey.

Good morning. David, are you there?

DAVID APPLEGATE, U.S. GEOLOGICAL SURVEY: Yes, I am.

COSTELLO: Oh, good. You scared me for just a second there.

Why so many earthquakes?

APPLEGATE: Well, the one that we just had a few hours ago is an aftershock from the -- the other northern California earthquake that was offshore and that led to the tsunami warning. This is a magnitude 6.6, so it's a bit smaller than the previous one, and located quite close by to it.

COSTELLO: It's still a pretty major shake, though, isn't it?

APPLEGATE: Well, it is indeed. When we have an earthquake as big as the one we had two days ago, we generally expect to see aftershocks. This is a particularly large one. It was relatively light shaking onshore just because it was located over 120 miles offshore.

MYERS: David, this is Chad Myers up in the weather center. I have a question for you. I'd like you explain how the logarithmic function works of this 6.6 to 7.2, how every dot that you get, every point you get is actually another magnitude higher, another times higher. How does that work.

APPLEGATE: Well, that's right. This is -- this is a scale where, from a magnitude 7 to a magnitude 8, we're looking at a 10 times larger earthquake. And, in fact, if you look at it in terms of the amount of energy that's released, it's a factor of 33.

So that means the magnitude 7 is 33 times more energy released than a magnitude 6. And indeed, a magnitude 7 is a thousand times more energy released than a magnitude 5. That gives you a sense of just how big that magnitude 9 was on December 26.

MYERS: Absolutely.

COSTELLO: Wow. You know, these earthquakes have happened offshore. Should California be preparing for an earthquake to hit on land now, especially if the aftershocks keep coming?

APPLEGATE: Well, there certainly is that possibility. We've had some earthquake activity, although smaller earthquakes down in southern California. That's many hundreds of miles away and on a different fault system. But California certainly is earthquake country, and it's always good to be prepared.

COSTELLO: Always good -- you know, it's funny, Californians just don't seem to be phased by these earthquakes, of course we on the East Coast aren't used to them. Thank you. David Applegate from the U.S. Geological Survey joining DAYBREAK this morning.

Now to the fight for Iraq. Some congressmen have picked a timetable for when that fight should end. A bipartisan bill in the House calls for President Bush to have a plan for troop withdrawals in place for the end of the year. They're also calling for the troops to actually start coming home for good by October of next year.

Supporters of the resolution say an exit strategy is an important step for the American public.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: After 1,700 deaths, over 12,000 wounded, and $200 billion spent, we believe it is time to have this debate and this discussion on this resolution.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

REP. DENNIS KUCINICH (D), OHIO: And for the first time, a bipartisan group of members of Congress worked together to craft a binding resolution to bring the troops home. And our partnership reflects a shifting mood in Congress caused by daily reports of more Americans dead in a war with no end in sight. Now, our bill says enough.

(END VIDEO CLIP)

COSTELLO: President Bush has said before that a troop withdrawal would come as soon as Iraqi forces are able to take over their own security. And the administration says the best way to honor the troops is to finish the mission.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: The stakes are very high in Iraq. I think no matter where you stood on the decision to go to war, that most Americans can agree that succeeding in Iraq is critical to our safety and security. It would be absolutely the wrong message to send to set some sort of artificial timetable. It would be the wrong message to send to the terrorists, it would be the wrong message to send to the Iraqi people, and it would be the wrong message to send to our troops.

(END VIDEO CLIP)

COSTELLO: The former Marine commander in Iraq, Lieutenant General James Conway, echoes the administration's stance. He says any timetable would allow the insurgents to simply "wait us out."

Former President Bill Clinton echoed that sentiment during an appearance on "Late Night With David Letterman." Listen.

(BEGIN VIDEO CLIP)

WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: And I don't think the American people should give up on it. And I don't think the president is wrong not to set a date certain for withdrawal. Because if you set a date certain for withdrawal, it's like waving a red flag to all the adversaries, all the opponents to the regime, all the opponents of democracy, hold out, don't make a deal, don't compromise, you know, just wait for the Americans to leave.

(END VIDEO CLIP)

COSTELLO: And while the withdrawal debate continues, the House is also considering spending more money for actions in Iraq and Afghanistan. A vote is planned for Monday on a spending bill worth $45 billion. Democrats are debating whether to add an amendment to that bill that gives President Bush 30 days to tell Congress what it will take to bring the troops home.

But that question remains, what happens when U.S. troops finally do pull out of Iraq? That's one of those questions that can't be answered until it happens. And even looking back at history doesn't necessarily help to paint a clear picture.

CNN National Correspondent Bruce Morton puts things in perspective for us.

(BEGIN VIDEOTAPE)

BRUCE MORTON, CNN CORRESPONDENT (voice-over): Getting into war is easy. Japan bombs Pearl Harbor, the U.S. invades Iraq, whatever. Getting out is much harder.

World War II was straightforward. The allies said Nazi Germany and Japan had to surrender unconditionally. And they did. The last time it was that simple.

The Korean War never ended with a formal peace treaty. The United Nations forces and the North Koreans and their Chinese allies arranged an armistice, a truce still in effect more than half a century later.

In Vietnam, Congress was split over the war just as this Congress is split over Iraq. Two senators, Republican John Sherman Cooker of Kentucky and Democrat Frank Church of Idaho offered up an amendment cutting off funds for the war. That failed. Troops were there, after all. But it showed how divide the Congress and country were.

One wise old Republican George Aiken of Vermont said, the U.S. should declare victory and leave. The trouble was, everyone was pretty sure that if the U.S. left, the communist north would win. Lyndon Johnson didn't want to be the first president to lose a war, neither did Richard Nixon.

Nixon did negotiate a settlement, the U.S. troops came home. And by the time the North Vietnamese captured Saigon and won the war, Gerald Ford was president.

Iraq is a little like that. Everyone is pretty sure that if the U.S. leaves we won't like what happens next, probably a civil war. The insurgency is alive and well, it killed 80 U.S. troops and more than 700 Iraqis last month. And "The New York Times" reports today the difficulty our soldiers have. "We have a finite number of troops," one officer says. "You can pacify an area, but if you leave, the insurgents come right back." The U.S. doesn't have enough troops to keep order everywhere.

So in a sense, we're stuck. Most Americans polls say would like to leave but how? Can we train enough Iraqi troops to keep the peace? Maybe. Some day. But that certainly hasn't happened yet.

Bruce Morton, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Despite that, a bipartisan group of House members called on President Bush this week to start planning for a U.S. withdrawal from Iraq. The White House says President Bush will sharpen his focus on the war in upcoming public appearances, but the group says it's time for Congress to start talking about an exit strategy.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We're not here to assess blame, get involved in recriminations or accusations. We believe the troops have done everything that they can do from a military point of view.

(END VIDEO CLIP)

COSTELLO: And the congressional plan calls for the withdrawal to begin by October 1, 2006. And that brings us to our DAYBREAK e-mail "Question of the Morning."

MYERS: It certainly does. We want to know what you think. Is there some other option out there that we're not thinking of? Should there be a timetable for troop withdrawal from Iraq?

Go to -- e-mail us at DAYBREAK@CNN.com. There's your question, should there be a timetable for a troop withdrawal from Iraq -- Carol.

COSTELLO: Oh, I can't wait to hear what people are thinking about that this morning. DAYBREAK@CNN.com.

Gallantry and honor. A female soldier from Tennessee is being cited with the nation's third highest medal for valor, the first for a woman since World War II.

Twenty-three-year-old Sergeant Leigh Ann Hester of the Kentucky National Guard has received the Silver Star for her actions during an ambush in March. Hester and two other soldiers counterattacked.

The citation says Hester's actions saved the lives of several convoy members. The other two soldiers were awarded Silver Stars.

Another woman armed services member is in the spotlight as well. The Air Force has named Captain Nicole Malachowski to the famous Thunderbirds flying team. Malachowski is a 1996 graduate of the Air Force Academy. She makes her debut with the Thunderbirds next March.

There she is.

Coming up, children by the thousands live on the streets in Russia. Against insurmountable odds, an American brother and sister fight for at least some of those lost boys. Ryan Chilcote takes us to the streets in 13 minutes.

China operates the most sophisticated Internet censorship in the world. You might be surprised what American company helps them do it. Maggie Lake has that story in 32 minutes.

And it's June, for Pete's sakes, so why are Christmas decorations like these still on display? A local Illinois politician wants to know. We'll talk to her in 42 minutes.

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

(COMMERCIAL BREAK) COSTELLO: Let's get a quick check of the international markets now. Japan's Nikkei closes up 98 points, posting its sixth straight day of gains. Britain's FTSE is up 12. And the German DAX is up nearly 10 points.

I kind of feel like noshing now after that music.

Your news, money, weather and sports. It's 5:16 Eastern. Here's what's all new this morning.

U.S. and Iraqi forces launch a new offensive near the Syrian border today. The military says Operation Spear is designed to disrupt an insurgent and foreign fighter stronghold near the village of Karbala -- Karrabilah (ph), I should say.

Another shaker in California. A 6.6 magnitude quake rattled the ocean floor off the coast of northern California about three hours ago. It was located about 125 miles west of Eureka.

In money news, the government settled its stolen identity case with BJ's Wholesale Club. Lax security had been blamed for thousands of BJ's customers having their credit and debit card numbers stolen. BJ's has agreed to tighten security and will undergo a 20-year audit process.

In culture, Tom Hanks' production company plans to make a movie about Mark Felt, you know, Deep Throat. Felt also has a book deal. The book could hit bookstores by early next year.

In sports, the Detroit Pistons evened up the NBA finals by thumping the San Antonio Spurs. The Pistons' 102-71 win was the biggest blowout in the finals since Michael Jordan's last title game back in 1998 -- Chad.

MYERS: I don't know what it is about that hardwood up there in Auburn Hills, but they're tough to beat up there.

(WEATHER REPORT)

COSTELLO: Thank you, Chad.

MYERS: Yes.

COSTELLO: That's a look at the latest headlines for you this morning.

Iran is holding presidential elections today. Given Iran's nuclear ambitions, the stakes in this election are high. To explain, Chief International Correspondent Christiane Amanpour joins us live from a polling station in Tehran.

Hello, Christiane.

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Carol, we're at a mobile polling station. In fact, the group behind have voted, and the actual mobile unit has dispersed. We've been going to a couple of these polling stations. Some of them are in schools, some of them are in mosques. And we've noticed what may be a lower-than-usual turnout. That's what authorities at the actual stations are telling us. But we are going to be waiting, obviously, to see what happens. Generally, it picks up towards the end of the day.

Turnout is important, because this regime, the Islamic Republic, has always used a usually heavy turnout at presidential elections to legitimize its -- its government here. So if it's a low turnout, they're not going to like that.

The supreme leader, the Ayatollah Khameini, cast his vote today, and he's been calling all along for a high turnout to basically tell the world that this is a democratic country. But people, as you know, before this election campaign, and before the actual day today, had said that they may boycott the votes because there's a lot of alienating.

They feel alienated, they feel somewhat apathetic, they feel that the candidates don't meet their requirements or their demands. And most importantly, many people are not happy that the candidates are handpicked by a group, the Guardian Council, which itself is not elected. So it's a very carefully screened group of candidates.

Having said that, those who say they are going to vote have told us that they're going to vote, some of them have told us, for the previous president, Hashemi Rafsanjani. Why? Because they think that he has the power and the experience to try to actually deliver on their demands.

What people want is a better economy, they want more freedoms, more democracy, the kinds of things they had hoped they would get under the reformist president, Mohammed Khatami, over the last eight years. But they've seen that the hard-lined conservatives, mostly the unelected bodies, have prevented him from implementing his program. So they're -- they're frustrated with that.

Having said that, people do say they are going to vote for the reformist candidate, Mostafa Moin. So it looks like it could shape down between -- in a two-way race between Rafsanjani and Moin. And it may go to an unprecedented second round a week from today.

So we're not quite sure about that. But certainly, all the candidates, whether they be hard-lined conservative or reformist, have recreated themselves in the image of democrats and reformists. They have basically taken the language of Mohammed Khatami, which is now an established dialogue here.

They're using the language of reform. Basically, nobody mentions Islam. They talk about reform and democracy and meeting the demands of the young people.

So all the candidates have (INAUDIBLE) TV commercials, all their campaign commercials towards the young people. Whether it works we'll wait and see, and hopefully have that news later on. Back to you, Carol.

COSTELLO: We hope so. Christiane Amanpour live in Tehran, Iran, this morning.

Still to come on DAYBREAK, the heartbreaking stories of street kids in Russia and two Americans who are trying to change the fate of these children.

You are watching DAYBREAK for a Friday.

(COMMERCIAL BREAK)

COSTELLO: A reminder to you. Our e-mail "Question of the Morning," should there be a timeline for troops to withdrawal from Iraq? A lot of controversy about that right now. Tell us what you think. DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.

We've all seen the movies and pictures of street kids in different parts of the world. Those are stories of lost hope and broken dreams. But now some street children in Russia are getting those dreams back thanks to two dedicated volunteers.

CNN's Ryan Chilcote has their story.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice-over): It's Friday afternoon at the Center for Social Adaptation. Two dozen or so children rounded up by the police who don't like wild kids running around loose.

Instead, Jared Markoff is there to offer them an alternative. Without him, many of the kids will end up back on Russia's streets or in its orphanages, psychiatric wards, or even jails.

In 1996, Jared and sister Christina Greenberg, son and daughter of a California missionary, moved half way around the world to the Russian city of Perm. Eight winters later, they are still hunting down street kids in Perm's underworld of sewers, basements and drug dens.

This is a glue house. For just 50 cents, 10 kids can sniff enough glue to keep them high for an evening. With prices like that, nearly all the kids do it.

With the offer of a hot meal, Jared gets the kids to follow him out of the drug dens. The trick, to get the kids heads into fun and games. All of them come with their own dark stories.

Slava's story I find the most remarkable. He followed a familiar path to the streets.

CHRISTINA GREENBERG, LOVE'S BRIDGE: When his mom found a new boyfriend who started beating him and started beating his mother and started drinking a lot, he started running away and living on the streets.

CHILCOTE: At 12, Slava fell victim to abuse again. This time at the hands of predators.

"I was little and I met some older guys. They took photos of me in an apartment. They told me they'd give me money," Slava says.

"I was there for a week. They wouldn't let me go. There were three of them and another boy. They sent the photos to Moscow and sold them."

GREENBERG: He started coming to our daycare center, and we realized that he really wanted to make a change, that he wanted to stop sniffing glue, and that he really didn't like his life on the streets. So we took him into our full-time shelter. Slava started going to school, making progress.

CHILCOTE: The men who held him were convicted after Slava refused a $4,000 bribe from them not to testify.

It doesn't always turn out well. Jared and some of the kids have come to this cemetery. They are searching, but not for someone to take back to the shelter.

JARED MARKOFF, LOVE'S BRIDGE: Eurena (ph) was 11 years old when she died. She was found hung inside one of Perm's sewers.

So today, Siata (ph) and Larisa (ph), two of Eurena's (ph) friends, came here to the cemetery to look for her grave. And after two hours of looking they finally found it.

So we've been able to save several hundred kids from the streets, but I would say about eight of the children I know personally have died.

CHILCOTE: After eight years, Christina and Jared have learned to measure success in small victories.

GREENBERG: A lot of the kids that we knew five years ago, even if they're not yet studying or they're not yet living in a permanent home, they've made leaps and bounds of progress. I consider progress when a kid washes up every day.

CHILCOTE: But in a year they plan to turn their shelters over to the Russian staff. They've achieved a lot here, but worry that without them and the donors they work with, it could disappear.

Still, they are people of faith. They believe somehow it will work out. They also believe that with love, the evil in these children's lives can be overcome.

(END VIDEOTAPE)

CHILCOTE: Carol, no one knows for sure exactly how many Russian kids are out on the street here. But the government acknowledges that they believe that at least 700,000 Russian children are on the street. Many people here fear the number could be much higher, perhaps in the millions. But at least in the city of Perm that number isn't rising, in no small part thanks to, of course, Christina and Jared's shelters there.

They say that about 400 kids over the last eight years have gone through those shelters. And it's a very tough line of work, but they say that about a third of those kids can be described as success stories. Something major has changed in their life for the better.

A lot of the kids, they simply don't know what's happened to them. They lose touch. They hope that that's for the best, that they found homes to live in, that they've returned to their families. But it's a very obviously difficult job.

As for Slava, he's the child that was sexually abused. He's doing very well. He's still at the shelter. And just over the last few months, they found an American sponsor for him who's paying for his education -- Carol.

COSTELLO: You know I was just going to ask you that, if Americans want to help, what can they do?

CHILCOTE: Well they can of course help Love's Bridge. That's the organization that Christina and Jared set up. It's still very active in that city. They have a Web site. And so you can go to that site and there are ways to help them. It's very important. Really, what they are doing is quite unique throughout Russia.

And what they would like to do is take some of the experience that they have gained in the city of Perm and share that with nonprofit organizations that are springing up in other cities. Perhaps to try and make this more of a Russian homegrown movement to try and help these kids -- Carol.

COSTELLO: Organization is called Love's Bridge, Love's Bridge, L-O-V-E-S B-R-I-D-G-E.

CHILCOTE: Love's Bridge.

COSTELLO: Thank you. Ryan Chilcote reporting live from Russia this morning.

CHILCOTE: That's correct.

COSTELLO: We're going to take a break. We'll be back with much more on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you, welcome to the second half- hour of DAYBREAK.

Coming up in the next 30 minutes, in America you can pretty much post anything you want on a blog, but in China it is a whole different story. Words like freedom and democracy are no-nos. We'll go live to China for a look. And why don't people take down their Christmas decorations after the holidays? Why are they still up in June? We'll talk to one woman who wants overdue decorations banned.

But first, "Now in the News."

Iranians are voting today for a new president. The stakes are high because of strained ties with the West over Iran's nuclear program. None of the seven candidates is expected to get an outright majority, so a run-off is likely.

U.S. and Iraqi forces launch a new operation designed to root out insurgents near the Syrian border. Operation Spear is centered in the village of Karabilah. That's the same village where Marines fought insurgents a week ago.

Yet another earthquake rattles northern California. The 6.6 magnitude quake struck about three hours ago off the coast of northern California. That's some 125 miles west of Eureka.

Good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

That's about 30 miles from where the big one was on Wednesday. So we talked to the U.S.G.S. earlier. They said that was really just an aftershock of the one that was out there, which was a 7.2. But there you go. And it's the full moon, and that helps pull the earth apart, just like it makes bigger tides.

(WEATHER REPORT)

Carol, back to you.

COSTELLO: Thank you, Chad.

A new poll is not very flattering to President Bush or to Congress, for that matter. "The New York Times"-CBS Poll gives the president a 42 percent approval rating. That's down from a 51 percent rating in November. The poll is of 1,100 adults. It was taken June 10 through the 15th. Fifty-one percent of the respondents disapprove of the way the president is handling his job.

Asked about Iraq, nearly 60 percent say things are going badly, while one in three give the president a thumbs up for the way he's handling the war. In February, it was 45 percent.

Asked about the direction of the country, just about a third of the respondents say it's going in the right direction, 61 percent say wrong direction, Mr. President. The poll's margin of error is plus or minus 3 percentage points.

Tapping your phones, snooping into what you check out of the library and what books you buy, all at the center of the debate on the Patriot Act and the lengths government should go to catch a terrorist. Now there's word of a possible compromise. A group of homeland security experts have sent his proposals to Attorney General Alberto Gonzales and congressional leaders. It's quite a commotion over what the Fed should be able to do, the powers they'll have or continue to have. We'll keep you posted.

New York takes a hit in Congress. The House Appropriations Committee voted to take back about $125 million in unspent aid for the 9/11 attacks. The money was to cover the costs of dealing with claims from ground zero construction and recovery workers. And, as you can imagine, New York lawmakers are not so happy about this.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: Let me ask the president, why would your administration take money away from these people? You've come to New York and you've called them heroes. It is not fair a few years later to pull the rug out from under them.

(END VIDEO CLIP)

COSTELLO: The panel did vote to let the city keep $44 million in worker compensation funds.

In other news "Across America" now, no one hurt when this Goodyear blimp went limp several miles from its home base in Pompano Beach, Florida. Bad weather may be to blame for the accident. The pilot of the "Stars & Stripes" airship was trying to make an emergency landing when the blimp crashed into power lines.

Rescuers are scrambling to save hundreds of birds that have been caught in an oil spill off the Louisiana coast. The oil came from an offshore rig in the Gulf of Mexico that was abandoned during Tropical Storm Arlene. Bird rescuers from as far away as Delaware and California are in Louisiana to help.

This follow-up report, a California father and son are indicted in a terror case. A federal grand jury in California indicted the pair on charges they lied to the FBI about the son attending Pakistani terrorist training camps. The Pakistani-born father and his son were arrested last week on similar charges. Their lawyer says the government's case is weak since the two don't face terrorist-related charges.

Still to come on DAYBREAK, we'll head live to China where words like democracy and freedom will soon be banned from blogs.

And don't forget our e-mail "Question of the Morning," should there be a timeline for troops to withdrawal from Iraq? Tell us what you think, DAYBREAK@CNN.com.

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

(COMMERCIAL BREAK)

COSTELLO: Our Jane Arraf is embedded with U.S. troops. They are taking part in Operation Spear. And whenever she calls in, we get right to her. So let's do that right now to see what's happening there.

Jane, hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Carol, we are on the edge of Karabilah, possibly about (INAUDIBLE). This battle has been going on for some hours. And what it is is the Marines trying to crack down on what they believe are (ph) foreign fighters' safe haven. They believe that more than 100 foreign fighters are holed up in this city. It's about a town of -- a city of about 60,000 people close to the Syrian border.

And from where we stand, we have been hearing and seeing explosions, as well as firing from Huey helicopters with sounds like mortars. We know there was gunfire earlier. The initial report we had was that at least three suspected insurgents have been killed and the fighting is still going on -- Carol.

COSTELLO: I just wanted to ask you, I know there were 1,000 U.S. troops and some Iraqi security forces involved in Operation Spear. How many insurgents do you think are out there?

ARRAF: The significant thing about this city, Carol, is that it is believed, essentially, to be taken over, taken hostage, if you will, by insurgents, and even more significantly, foreign fighters. It's very close to the Syrian border. And it's hard to tell exactly how many insurgents (INAUDIBLE) possibly be several hundred. And impossible to tell, until we get there, which we hope to in the next little while. What's happening to the civilians in the city as well?

The Marines (INAUDIBLE) left (INAUDIBLE) possibly launch (INAUDIBLE) what they said (INAUDIBLE) -- Carol.

COSTELLO: Jane, we're losing your transmission, Jane.

As you might imagine, it's difficult to get a live shot out of any part of Iraq, really. But, really, she is traveling. So we'll try to get back to Jane Arraf as soon as she can.

But again, Operation Spear now ongoing. U.S. forces and Iraqi security forces trying to root out insurgents in the Al Anbar Province, which is right on the Syrian border in northwestern Iraq.

Let's get right to our e-mail segment now -- Chad.

MYERS: Carol, here is the question. We had all this hullabaloo yesterday about should there be a timetable for withdrawal from Iraq? And that is our "Question of the Day." We have had some phenomenal answers. And, actually, yes and nos. Kind of going 50/50 maybe, maybe a little less one way or the other.

But I'll tell you, from R.N. (ph) in Dallas, we must stay the course in Iraq and finish the job. The term exit strategy is a foreign concept. There should not be a timetable for withdrawal. That would play into the hands of the insurgents. Those who would have us remove our troops before the job is done and undermine our nation's blood sacrifice in Iraq are traitors, in my opinion -- Carol. COSTELLO: I like this one from Rhonda (ph) in Arizona. She says, no, I don't think there should be a timetable for troop withdrawal. Better yet, ask the troops if they want to abandon their efforts. Ask them if they're willing to kiss away all their hard work should they withdrawal too early. Ask them if they are willing to let their fallen troops die in vein should they be brought home too early and it was all for nothing.

MYERS: Greg (ph) in Johnson City says you know we shouldn't have an exit strategy, but we should have some kind of victory strategy -- Carol.

COSTELLO: Victory strategy, I like that, yes.

Let's see, a timetable for U.S. troops should be made now. Terrorists are all over the world. It is impossible for us to hunt them all down. Our country's efforts to curb terrorism need to be concentrated within our borders and do our best to keep them out of our country.

MYERS: And I got one from Robert (ph) in Atlanta, timetables are not the solution here to get away -- go around the real issue. The U.S. Americans must realize that there may be no end to this war ever and that this war started long before all of us were born.

COSTELLO: I just want to read one more from Pete (ph). He says there can be a timetable or there can be a draft. The Army doesn't have the people to continue the present level of troops and the present level of troops has proven inadequate to maintain order.

So keep those e-mails coming, DAYBREAK@CNN.com. And we'll read some more later. Thank you.

A recent report by the Open Net Initiative found that China operates the most extensive, technologically sophisticated and broad- reaching system of Internet filtering in the world. So how do they do it?

As CNN's Maggie Lake reports, with the help of American know-how and American products.

(BEGIN VIDEOTAPE)

MAGGIE LAKE, CNN CORRESPONDENT (voice-over): In China, Internet users must choose their words carefully. Government controls on what's available online are getting even tighter. As of June 30, Web site owners must register with authorities or lose their license and face fines.

The government is also requiring Western companies to actively censor information that flows through their search and blog sites.

Beijing Internet users on Microsoft's MSN space who try to search the phrase democracy get a warning message that says, "The title entered must not include prohibited language. Please input another title." Users had similar experiences when they tried other search engines.

Media watchdogs are concerned that by cooperating with censorship, U.S. companies are putting profits ahead of ethics.

TALA DOWLATSHAHI, REPORTERS WITHOUT BORDERS: If Microsoft is a U.S.-based company and is allowed to set up portals for Web bloggers within the United States, which anyone can speak about any issue, then that same policy, that same ethical principle should be exercised abroad and overseas.

LAKE: Microsoft, Yahoo! and eBay say it is their company's policy to abide by the regulations of each country they operate in.

Observers say censorship in China is a complicated issue that has companies stuck between a rock and a hard place.

JONATHAN ZITTRAIN, HARVARD UNIVERSITY: A company wanting to do business in China, I think without being unethical or hypocritical, can genuinely decide that they have services to offer, that, over the long haul, will be freedom enhancing. And if they have to jump through a couple hoops at the outset, it's better for everybody that they do so.

LAKE: At 94 million and growing, China has the world's second largest population of Internet users. Many are easily able to circumvent the existing government controls. By simply typing a comma in the word "freedom," a user in Beijing was able to complete her search. A similar technique works for other words as well. Text messaging also gets around the sensors.

For now, these evasion techniques allow users to stay one step ahead of the censors, but critics say the Chinese government won't back off.

ZITTRAIN: There's enough surveillance going on that somebody who stands on top of a virtual tank and utters the wrong words could actually find him or herself going to jail.

LAKE: A step that could have a chilling effect on freedom on the Internet.

Maggie Lake, CNN, New York.

(END VIDEOTAPE)

COSTELLO: For more on Web surfing from China, let's go live right now to CNN's Stan Grant. He's in Beijing.

So, Stan, is it possible to get past the censorship?

STAN GRANT, CNN CORRESPONDENT: It's kind of cat and mouse, isn't it, Carol? Really it's all about information and the flow of information that's seen here as suspect. Information is seen as dangerous. We are regularly blacked out on CNN if we mention sensitive issues in our stories. Like I guarantee you this conversation we're having now is being blacked out as we speak here in China.

When it comes to the Internet, it's shot through with holes this. There are so many anomalies. We talked about MSN spaces. Now that is a Web blog service. If you put the wrong word in there, what they deem to be the wrong word, human rights, democracy, freedom, it simply won't allow you. It will say that those words are forbidden.

Similarly, though, if you go to a Chinese bulletin page or a Chinese blog service, sometimes you can actually enter those words there and they will stay there. It's the same thing with search engines. You can go to various search engines and search for democracy, search for freedom, and, yes, those searches will be successful. The problem is when you go to access the hits that you've found you simply can't open them.

You can also search, there are ways around it, by searching on Chinese Web sits, Yahoo! China or Google China. If you enter the word not in Chinese characters but in English, you can sometimes get a hit. And you can sometimes even open that.

It's really a struggle here as the government tries to grab hold of the flow of information in China as it continues to expand. As we heard there in Maggie's package, almost 100,000 Internet users, 300,000-plus mobile phone users. Information is spreading very, very quickly.

To the government, it's like wrestling with a column of smoke, Carol. The next step is to actually introduce Internet police. We're hearing now in Beijing 4,000 Internet police being trained. Hundreds of them will be let loose in Internet cafes around the city -- Carol.

COSTELLO: Unbelievable. I know Maggie Lake said you could go to jail if you're caught, but expound on that. What could happen if someone is caught using an improper word on a blog?

GRANT: Well it depends exactly what you're saying and what your aim is. Yes, people have gone to jail for that. Internet cafes, Internet sites have been closed. We know that journalists have gone to jail. There are a couple of cases at the moment of journalists being imprisoned as a result of stories they have done that the government believed were too sensitive or they believed were acting against China's interests, being seen as traitors or spies. So, yes, the price you can pay can be very high.

But as information becomes more readily available, more accessible, more and more people use it, you're continuing to stretch the boundaries in China to test the government. And the government, at the same time, as I said before, wrestling with this column of smoke, trying to get hold of it and making sure that they can maintain control over information they deem to be dangerous -- Carol.

COSTELLO: Stan Grant live from Beijing this morning.

Still to come on DAYBREAK, I know it's not the most important story, but Christmas lights in June. Aren't you tired of looking at your neighbor's Christmas decorations? Don't you want them to take them down? Up next, we take you to one woman in Illinois who is taking matters into her own hands.

(COMMERCIAL BREAK)

COSTELLO: So here it is mid-June and we ask you this question, and we know it's not an important question, but we just must ask, are Santa and his eight tiny reindeer still decorating your house? Somewhere in the city, actually, somewhere in New Jersey there are decorations still up, because one of our -- Rob, one of our camera people.

Rob, where?

ROB, CNN CAMERAMAN: Long Island.

COSTELLO: Long Island. His neighbor's decorations have been up for two years now.

Let's head, though, to Aurora, Illinois. Alderwoman Juany Garza is canvassing her constituents. Actually, she would like to put a canvas over Christmas decorations left up all year. Alderwoman Garza joins us live now.

Good morning.

JUANY GARZA, ALDERWOMAN: Good morning.

COSTELLO: Why is this such an important issue to you?

GARZA: Because we hear it in our work committee every month. So the work committee, we're talking making Memorial Day weekend. And we try to decorate a community with the flag, American flags and all that, you know. And so we're thinking how would it help to do with these people that still have their Christmas ornaments.

So we decide to knock on the doors and say nay it's not Christmas no more, so they'll go, and so we have to celebrate Memorial Day weekend. So we didn't have no answers. Some people working, I don't know, they don't open the doors. So we decide to make letter. So we send the letter. It's an invitation to take them down because there are lights and there are still (INAUDIBLE) in all the seasons.

COSTELLO: OK, so just so people understand, you put notes or you sent notes to people who still have their Christmas decorations up in June.

GARZA: Exactly, yes.

COSTELLO: Have you gotten any response?

GARZA: A lot of response. I'm so happy.

COSTELLO: So did they take the Christmas decorations down?

GARZA: Yes. Yes, they take them down.

COSTELLO: So it's sort of like shaming them into taking the Christmas decorations down?

GARZA: Well, yes, because when I'm explaining this letter, this is a flag (ph) in our community. So I take the pride of the community and every person living in Aurora. So the reaction (ph) to do it is not good, succumbs the value of the properties and all that.

COSTELLO: Is there any penalty that the city can assess for people leaving their Christmas decorations up?

GARZA: Not yet. Not yet.

COSTELLO: But you're planning something?

GARZA: Yes, we're planning to having an ordinance. In the future is what we're planning, probably next year, we want to have a stipulation in case they're still hanging up to 60 days after the holidays.

COSTELLO: Interesting. And what would be the penalty?

GARZA: Well the first time the one that sent the letter, then no one come (ph). The second letter, they want to send it with a $50 catch (ph). So when the people open the bill in the packets, they don't like it.

COSTELLO: No, I would say not. But at least your efforts right now are working. And we appreciate you joining us this morning, Alderwoman Juany Garza from Aurora, Illinois, because I know it's an hour earlier there. We appreciate it.

Some "Health Headlines" for you now.

Four Massachusetts hospitals will investigate exposure to tuberculosis. Authorities say a female surgeon was contagious for six months. TB wasn't confirmed until Monday, so hundreds of patients and staff may have been exposed. But officials say 90 percent of TB infections cannot be spread to other people.

A heart failure drug specifically for African-Americans has moved closer to U.S. approval. A medical advisory panel has endorsed the first medicine for patients of one particular race. The FDA will now consider the panel's recommendation.

You are watching DAYBREAK for a Friday.

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