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CNN Live At Daybreak

Rove & CIA Leak; Terror Probe; Life in Baghdad

Aired July 15, 2005 - 05:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

FREDRICKA WHITFIELD, CNN ANCHOR: It's Friday, July 15. The plot thickens and the heat rises around Karl Rove. New details this morning about the White House official's alleged connection to the leak of a CIA agent's name.
Also, launch break. Will Discovery be shooting for the stars this weekend or staying grounded?

And the search for clues in London's deadly terror attacks lead investigators here to the United States.

ANNOUNCER: From the CNN Center in Atlanta, this is DAYBREAK with Fredricka Whitfield.

WHITFIELD: Good morning, everyone. I'm Fredricka Whitfield, in today for Carol Costello. We'll have more on those stories in a moment.

But first, ahead, a secret thousand of married couples -- married couples' surprises that might surprise you.

And a look inside Iraq like you've probably never seen before. See how violence isn't crushing hope.

But first, "Now in the News."

New information on Karl Rove's alleged role in the CIA leak controversy. The Associated Press says Rove learned the agent's identity from a journalist.

CNN has learned that the bombings may have been a continuation of a plot that British police foiled last year. In that case, eight British Muslims were arrested and a half ton of explosive material confiscated.

Hurricane Emily is now churning through the Caribbean as a Category 4 storm. Emily was upgraded from a Category 3 when sustained winds reached 131 miles per hour. The storm is being blamed for one death in Grenada.

And Chad, good morning to you.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Fred.

(WEATHER REPORT)

WHITFIELD: All right. Thanks so much, Chad. MYERS: You're welcome.

WHITFIELD: We begin this hour with the controversy swirling around Karl Rove. The White House still isn't budging on top adviser Rove's involvement, if any, in the leak of a CIA agent's identity.

Rove reportedly told a grand jury that he learned the identity of a CIA operative from columnist Robert Novak, not the other way around. A federal criminal investigation into who leaked Valerie Plame's CIA identity has ensnared Bush aides and reporters in a two-year legal battle. Plame's husband, former Ambassador Joe Wilson, discussed the White House motivation with CNN's Aaron Brown.

(BEGIN VIDEO CLIP)

JOSEPH WILSON, FMR. U.S. AMBASSADOR: It's not enough just to apologize and move on. They then decided that they had to discredit me and my wife. And the reason that they did so is because they had to preserve the cover-up of the web of lies that underpinned the decision to go to war. And now that cover-up is coming unraveled, and they're back at it again.

(END VIDEO CLIP)

WHITFIELD: The White House still is not answering questions about Rove's possible role. Correspondent Dana Bash reports.

(BEGIN VIDEOTAPE)

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): The president usually takes his walk alone. Not today. A message here in pictures he has not yet sent with words. He's standing by Karl Rove.

But what Democrats see is a chance to chip away at a political asset Rove spent years building: the president as someone you can trust.

HOWARD DEAN, CHAIRMAN, DNC: Who do you value more, Mr. President, the security of the American people or your political cronies? Will you keep your word, Mr. President?

BASH: Over and over, Democrats hearken back to a Bush promise to fire anyone involved in outing the covert identity of Valerie Plame, even though the jury is still out on whether that's what Rove really did. Bush opponents want to make the Rove debate about credibility because they already see it eroding.

In a poll taken just before the latest developments, only 41 percent of Americans give Mr. Bush a good rating for being honest and straightforward. His lowest on this question since becoming president.

Privately, even some Bush loyalists fear the White House is now engulfed in a familiar dilemma.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I don't want to get into commenting on things in the context of an ongoing investigation.

An ongoing investigation.

An ongoing investigation.

I don't want to jeopardize anything in that investigation.

BASH: Letting a legal, not a political strategy, guide the White House message.

Another Bush problem, GOP strategists admit, the Democrats' attack is simple, keep your word, fire Karl Rove. Easy to fit on protests signs organized by MoveOn.org outside the White House. On the other hand, the Rove lines of defense, like he was talking off the record and he actually didn't use the covert agent's name, are much harder to explain.

DAVID GERGEN, FMR. WHITE HOUSE ADVISER: It's not likes a sex scandal, which is, you know, instantly understandable. This one is complex.

BASH: Trying to keep the story alive, Senate Democrats offer legislation aimed direct at Rove to take away security clearance for anyone who has disclosed classified information.

(on camera): Republicans dismiss all that as nothing more than a partisan stunt, but Democrats insist it's a legitimate policy issue. And beyond that, they say any time Bush allies have to defend somebody so indispensable to the president, it proves its power as a political issue.

Dana Bash, CNN, the White House.

(END VIDEOTAPE)

WHITFIELD: Chief Justice William Rehnquist wants to put an end to retirement rumors. Rehnquist released a statement saying he has no plans to step down from the court. He made his plans public just hours after being released from a Virginia hospital. The chief justice had been there for two days with a fever.

In his statement, the chief justice said, "I want to put to rest the speculation and unfounded rumors of my imminent retirement. I am not about to announce my retirement. I will continue to perform my duties as chief justice as long as my health permits."

We'll have much more on Rehnquist's decision later in DAYBREAK. National Correspondent Bob Franken will join us live to examine what it means for the Bush administration and the future of the court.

Outgoing justice Sandra Day O'Connor is being urged to reconsider her departure. Four female senators sent O'Connor a letter asking her to return to the court as chief justice. That came before Chief Justice Rehnquist announced plans to stay. The senators say they're trying to avoid a messy confirmation fight over O'Connor's replacement. The FBI has joined the London bombing investigation. They're helping British anti-terror police search for an Egyptian-born chemist who also studied in the United States.

For more on the investigation, we're joined by CNN's Richard Quest in London.

Good morning to you, Richard.

RICHARD QUEST, CNN CORRESPONDENT: Good morning to you, Fredricka.

The investigation continues at a fair, old pace. And there have been some interesting developments, not least of which, of course, the search for this biochemist, el Nashar, who is believed to have perhaps been in some shape or form by the authorities, or at least they certainly want to talk to him about what involvement he may have had.

The chemist is a biochemist from northern England. But also, we've had pictures released from the police of one of what they say were one of the bombers, the one who exploded the bomb on the number 30 bus, about a quarter of a mile from where I am.

Here's Hasib Hussain. And the chilling part about this picture is the ordinariness of it.

It was released from the CCTV, the closed-circuit television pictures that the police have now been looking at. Some 5,000 tapes have been sequestered by the police, and this is one of the shots that they've taken.

It is Hussain coming through Luton railway station. And the backpack on his back, exactly the sort of backpack you see here in London being warn by any one of 10,000 tourists, only this time, of course, it carried a 10-pound bomb.

One other piece of information. The police are now saying that they believe they know who three of the bombers were that took place Thursday, but they're also seeking a fourth man, a Jamaican-born man. And they say that he could be integral to their investigation.

So lots of -- lots of tentacles of this investigation now moving out.

Now, one thing that is becoming clear, Fredricka -- and this has been very interesting on both sides of the Atlantic -- it is the role being played by closed-circuit television and those films and those tapes that are now being closely watched and monitored. I want to show you something. Let's go this way, first of all.

Just over to my shoulder over here there are at least three closed-circuit television cameras monitoring what's happening on what is basically a very small, insignificant road here in London. If you come back the other way, and we move across towards King's Cross Station itself, you've got, Fredricka, at least another one, two, three, four, five, right across the McDonald's, six, seven. So in this one corner of London alone, I am being monitored by at least 11 closed-circuit television cameras.

Now, put that into the context of a city the size of London. Well, you're talking about thousands of cameras, thousands of tapes, but, the police say, they are integral to their investigation.

WHITFIELD: Thank you so much, Richard. But at the same time, it's so confusing as to why the many cameras wouldn't be a deterrent for at least an incident like this.

QUEST: Now that's the interesting question. You see, everybody says that closed-circuit television is not a deterrent. Witness the fact the bombings took place. If they were a deterrent -- if they were a deterrent, it wouldn't have happened.

What the police say is, no, not necessarily. They may be a deterrent. But more importantly, if the event happens, then, of course, they have the ability to speed up the investigation. Of course there are huge civil liberties questions raised by these -- by these cameras.

WHITFIELD: Yes. All right. Richard Quest in London. Thanks so much.

Still to come on DAYBREAK, you know those walk-up fares at the airline counter? Well, at Delta it might be easier just to keep on walking to wherever you need to go. At 17 after the hour, a major fare increase.

Also, a view of Iraq like you've probably never seen before. A vision of hope of happiness at 19 after.

And later, out to launch. The countdown continues, but is blastoff way off? That's at 35 after.

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

(COMMERCIAL BREAK)

WHITFIELD: The international markets are mixed this morning. Tokyo's Nikkei is lower by five points. The London FTSE is down by six. And the German DAX is up, but just by four points.

Your news, money, weather and sports. It is now 14 minutes after the hour, and here's what's all new this morning.

Presidential adviser Karl Rove reportedly testified to a grand jury that he learned the identity of a CIA operative from journalist Robert Novak. He says he then discussed the information with a "TIME" magazine reporter. That's according to The Associated Press.

The two-year-old Canadian beef ban is over. A federal appeals court ruled that Canadian cattle can once again be imported into the U.S. The ban had been in effect ever since a cow in Alberta was found to have mad cow disease. In money news, Delta Airlines has raised its fare cap by $100. The airline is blaming high fuel costs for the increase. One-way walk-up fares are now $599.

In culture, "Desperate Housewives" received 15 Emmy nominations, including a nod for best comedy series. Three of its stars, Teri Hatcher, Marcia Cross and Felicity Huffman are all in the running for best comedy actress.

In sports, the second round of the British Open is under way this morning. Tiger Woods took the first round lead. The 2000 British Open champ holds a one-shot lead after the first round.

Chad, you keeping close tabs on that?

MYERS: You know, I did not, although I do know that Jack Nicklaus, I think, shot a three over, which is still pretty darn good for him. So I hope he can make the cut and keep on going.

That would be awesome to see him in the final rounds. He could play on Sunday for a change.

Good morning, everybody.

(WEATHER REPORT)

WHITFIELD: All right. Thanks a lot, Chad.

MYERS: You bet.

WHITFIELD: Well, you've seen the horrific images of death and destruction in Iraq practically every day. Now CNN offers you a different perspective of life in Baghdad, one with hope and happiness. It's seen through the eyes of CNN producers Ayman Mohyeldin and Kianne Sadeq.

(BEGIN VIDEOTAPE)

KIANNE SADEQ, CNN PRODUCER: Just outside this tunnel of blast walls we reached Baghdad heaven. The Anwiya (ph) club is a recreational club in Baghdad. They just go to this club on a daily basis to have a good time.

We walked into a wedding and asked them to let us shoot their wedding. Oftentimes, you know, women would be nervous about outsiders filming their wedding. But in this wedding it was wide open. People were just being themselves. And we spoke to the mother, she said to me this is something they needed to do for their children.

SANAA BAHRI, BRIDE'S MOTHER (through translator): We want the coming days to be happiness and joy. Enough war, enough blood, enough pain. We're tired. We're really tired. So we bring pleasure to our children by these joyous events so that they look forward to the future with hope.

SADEQ: The father of the bride was an ex-captain in the Iraqi navy. My first impression was, "What an optimistic family. Why are they optimistic? How are they so optimistic in this time?"

It was only when I sat with him one on one I got the sense that he was upset.

ESSAM AL-HUSSAINI, BRIDE'S FATHER: I don't know what's happening. I mean, is it true that the Americans didn't plan it well, or did they misunderstand what -- the Iraqis' behavior. People are afraid.

I'm afraid for my son to go to school. I am afraid for my other son, a doctor, to travel to his hospital. I cannot send my daughter to the university.

They heard Bush and administrations, and we were very, very happy when he said that Iraq will be -- set an example in the Middle East, it will be one of the best countries in the Middle East. We appreciate his words. But I don't know. I mean, is it true that the great America cannot fill their promises?

SADEQ: We walked into this apartment in one of Baghdad's safer neighborhoods. Not too safe, but not -- not -- and it was this small apartment which this group of filmmakers had made for themselves into their own paradise.

AYMAN MOHYELDON, CNN PRODUCER: These filmmakers, they welcomed Americans with open arms when they first came. But then they saw them as occupiers, taking control of their country and their city. But they also realized that they had a chance and a freedom to express themselves in a way that they never had before the Americans came.

UNIDENTIFIED MALE (through translator): Now I can make any film I want. I can make films about communism, Islam, anything.

SADEQ: So here were all these filmmakers who were able to take Baghdad, with all the destruction in it, and make it into this canvas for their artwork that looked so beautiful, like this film they made about the dangers of being a journalist in Baghdad.

SALMAN ADEL, FILMMAKER: You have so many relatives killed, siblings, relatives, brothers, sisters, whatever, in every single house. You have to understand that life is difficult, and the difficulty of living is the -- is the motivator of ideas.

UNIDENTIFIED MALE (through translator): I say that there is chaos, destruction, devastation, killing, terrorism, and everything. But on the other hand, there is life.

SADEQ: To me, the optimism of these artists captured something essential about Iraqis. People have seen beautiful Baghdad turn into a war zone. They wanted to see Iraq be the beautiful Iraq that they love.

(END VIDEOTAPE)

WHITFIELD: "CNN PRESENTS" takes an in-depth look at how life has changed for Iraqis. Don't miss it this Sunday night, 8:00 Eastern. Still to come this morning, the flap over a big bird. Find out why it's ruffling the feathers of a few neighbors.

And it's guaranteed to make happy hour a whole lot happier. We'll show you the new turbo tap. And if you -- make you furious you didn't think of it first.

You're watching DAYBREAK for Friday, July 15.

(COMMERCIAL BREAK)

WHITFIELD: Well, just in case you missed it, we've got some of the funnier bits from last night's late night talk shows.

You weren't staying up for it, were you, Chad?

MYERS: Certainly not.

WHITFIELD: OK.

MYERS: After all that hurricane coverage, certainly I wasn't staying awake.

WHITFIELD: No kidding. All right. Well, Jay Leno was up, and he took a swing at just about everything from Karl Rove to "Harry Potter." Let's listen.

(BEGIN VIDEO CLIP)

JAY LENO, "THE TONIGHT SHOW": Baghdad, 130 degrees. Baghdad was so hot, Hussein traded his underpants for a thong.

Former head of WorldCom Bernie Ebbers sentenced to 25 years in prison yesterday.

(APPLAUSE)

LENO: Suddenly, we've got powerful, smug white people going to jail. This is not good news for Karl Rove. I'll tell you that right now. Oh my god.

This whole Karl Rove scandal, you know about this, right? See, it's just like the Clinton scandal. It involves a pudgy person in the Oval Office who can't keep their mouth shut. It's the same story.

(LAUGHTER)

LENO: It's the same story. The same...

The newest "Harry Potter" book just came out. Do you have it there, Joey (ph)? This is it here. We have an advanced copy. It's Harry Potter Gets Adopted by Angelina Jolie.

(LAUGHTER)

WHITFIELD: Ooh, that's cold-blooded, Chad. MYERS: It was.

WHITFIELD: All right. Well, splash a little water on your face. Time now for our DAYBREAK "Eye Openers."

Take a look at this. Ooh, eye-popping, isn't it? No, not New York City, but Charleston, South Carolina, Chad.

MYERS: Oh, it's finally over -- open, the Cooper River Bridge.

WHITFIELD: Yes, well, hey, if you are from Charleston, it's the Cooper River, you know.

MYERS: It's Cooper?

WHITFIELD: Yes.

MYERS: Oh, I'm not...

WHITFIELD: The Cooper River.

MYERS: Well, I drove over -- I drove over those other ones enough times to know that it's like, ugh, just get me off this thing and get me on to this new, big concrete beautiful bridge.

WHITFIELD: Yes, well it's the new one, 1,546 feet long. And it's now the longest cable-supported span in North America. The bridge will be dedicated officially tomorrow. And former congressman and state senator Arthur Ravenel, Jr. will be there.

And we call this one big bird flap -- get it? A big bird sculpture on the chimney of a Milwaukee house? Well, what would you think about that if that were next door to you, Chad?

MYERS: Somebody would probably call it art.

WHITFIELD: Well, the sculptor does. He calls it art. But some of the neighbors are calling it obnoxious, unsightly and even hazardous. And it also apparently hides some unsightly vent pipes sticking out of the roof.

MYERS: Oh, I see.

WHITFIELD: So that's why it's art. Well, the flap has now apparently landed in the town's commissioner's nest.

Well, America always wants things faster, including beer. And thus, the turbo tap, Chad. It will put a cold one in your hand at the Hye Bar in Chicago.

Been there?

MYERS: I have not been there. But I kind of like -- and it's not making a really big head on that beer either.

WHITFIELD: All right. Well, if you do go to the Hye Bar, it will get you a beer two to four times faster than at any other bar. And you can belly up to that bar if you can find your way to the north Southport Street.

Just something to...

MYERS: It makes the lines at the baseball game a lot quicker.

WHITFIELD: That's right. That's right. Something to get you going, get you excited for the weekend.

All right. Well, here's what's all new the next half-hour coming up.

The search for more suspects in the deadly London terror attacks lead police to a place you might now expect, a place right here in the U.S. That's coming up.

Plus, the countdown goes on and on and on. Will the shuttle be getting off the ground soon?

DAYBREAK is coming right back.

(COMMERCIAL BREAK)

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