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CNN Live At Daybreak

Cheney's Chief of Staff Enters CIA Leak Controversy; Retired Army Captain Helps Iraqi Orphans; Audi, Infinity Get High Safety Scores in Crash Tests

Aired July 18, 2005 - 06:30   ET

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


ANNOUNCER: From the CNN Center in Atlanta, this is DAYBREAK with Betty Nguyen and Chad Myers.
BETTY NGUYEN, HOST: Good morning, everyone. Thanks so much for waking up with us.

Coming up this half hour:

(BEGIN VIDEO CLIP)

MATTHEW COOPER, "TIME" MAGAZINE: After that conversation, I knew that she worked at the CIA and worked on WMD issues.

(END VIDEO CLIP)

NGUYEN: Still trying to figure out who said what. We'll tell you why there's another twist and maybe another player in the Karl Rove controversy.

And the leader of the pack, Lance Armstrong, shows his mettle as he pumps the pedals.

And now in the news: CNN has learned this morning at least three of the London bombing suspects traveled to Pakistan last year. What they were doing there is still unknown. All three died in the bombings that killed 55 people.

The Space Shuttle Discovery is on indefinite hold until a fuel sensor problem gets fixed. Problem managers say Discovery could launch within four days of the problem being fixed. Now, this launch window closes on July 31.

Taiwan is being battered today by a powerful typhoon, packing winds of 100 miles per hour. It has shut down the island and has caused some bridges to collapse, as well as some flooding, mudslides, and power outages there.

We've got typhoons. We've got hurricanes. It's all the same, a lot of problems, Chad.

CHAD MYERS, CNN METEOROLOGIST: We have Emily, that just drove itself right into Cozumel in the overnight hours. This is a very compact storm. Yes, it affected Cancun, as well, but not like it affected Playa del Carmen, Riviera Maya and down into Cozumel, the island right there offshore. One hundred and thirty-five mile per hour winds as the storm made landfall.

Here's the eye seven hours ago. There's the eye. There's the island. It's actually 160 or so square mile island. It's fairly large, but the highest elevation: 45 feet. Storm surge here could have been 20, 25 feet as it rolled over the island with all those winds, as well.

So this thing really did some damage in Cozumel. We have not even had one word out of that island yet this morning. We're still waiting, obviously, for daybreak. It's still very early there in Cozumel. But probably most of the communications are going to be down for awhile.

It is a Category 2 right now. It is on the Yucatan Peninsula. That's why it dropped from a Category 4 when it did make landfall. It was 135 miles per hour when it hit Cozumel. It's dropped down to a Category 2. It will continue to decline until it moves over the water. One hundred miles per hour here in the water.

And it looks like it's turning to the left a little bit. A hundred and 15 miles per hour, Category 3 as it makes landfall. The forecast line, south of Brownsville. Could be as far north as North Padre or as far south as Tanpeko. But looks like the island area that I'm really most concerned with now is actually going to be Monterey, Mexico. One point two million people live there.

NGUYEN: Goodness.

MYERS: And that's an area that's just surrounded by mountains and really could get a lot of flooding.

NGUYEN: Lot of flooding, yes.

MYERS: So we'll have to watch that.

NGUYEN: South Texas has had its fair share of flooding, too, Chad.

MYERS: Yes.

NGUYEN: We'll be watching. Thank you.

MYERS: You're welcome.

NGUYEN: Well, we begin this half hour with a swirling controversy about the CIA leak and who knew what when. Karl Rove has primarily been at the center of the storm, but now the story may have a player in the vice president's office.

And for more on that, we turn to CNN national correspondent Bob Franken, who joins us by phone in Washington. Bob, how does Cheney's chief of staff play into all of this?

BOB FRANKEN, CNN CORRESPONDENT: Well, he's among those who talked to Matt Cooper, according to Cooper. His name is Scooter Libby, by the way. So if you have a scorecard, and chances are you're going to need one here.

NGUYEN: Yes, really.

FRANKEN: What Cooper said, what he told him only that when he was presented with the possibility that Joe Wilson's wife, Valerie Plame, works with the CNN, he said, "Yes, I've heard that, too."

Now, does that constitute illegal behavior? That by itself would not seem to, according to most legal experts, because in order for the law to be broken, there would have to be a knowing effort to identify an undercover CIA operative or classified operative that the government had made a very strong effort to try to keep undercover. And there's a question, of course, whether the two knew that she was and whether she was even identified by name. Her name, by the way, was Valerie Plame. We know the story about how Joe Wilson had been a critic of the claims by the administration on weapons of mass destruction.

There are charges by the Democrats that, as a result of these leaks, that either Karl Rove or Scooter Libby should be let go from the White House. Of course (UNINTELLIGIBLE) by the fact that it's so convoluted in a real hurry (ph). But as I said, Scooter Libby's name is now very much attached to this. There are no suggestions at this point, at least, that the vice president, Dick Cheney, had any knowledge of the leaks.

NGUYEN: Bob, your audio is a little bit difficult to hear at this point. We appreciate that update. Bottom line, though, still so many questions in this one.

Also following a lot of other news, including Hurricane Emily. And we do want to remind you that CNN is your hurricane headquarters. We are following Emily's wet and windy path all morning long. And we want to take a look at where it has been.

Chad talked about just a moment ago Emily swept south of Jamaica over the weekend. The storm brought high winds and flooding to an island still cleaning up after Hurricane Dennis.

People packed into shelters across the Cayman Islands as Emily roared past them. The storm brought intense winds and rain but caused less damage than fear. Emily is now over Mexico's Yucatan Peninsula. It came ashore as a Category 4 storm, very powerful. But it has now weakened to a Category 2 storm, with winds of 110 miles an hour.

Forecasters expect Emily to cross the Yucatan and into the Gulf of Mexico sometime today, and it could threaten the southern Texas coast.

We, of course, will continue to watch Hurricane Emily. And remember, CNN is your hurricane headquarters.

Iraqis are dealing with the aftermath of a deadly series of suicide attacks that included an attack at the hospital. At least 90 people died in the attack about 45 south of Baghdad. The most damage was caused by a suicide bomber who blew himself up near a fuel tanker. Mortars were fired at the same time, into a police station and at a hospital.

Now Baghdad was also rocked by five explosions. Four of them were suicide bomb attacks that targeted Iraqi police and government officials. Nineteen people were killed in those attacks.

American and British troops, well, they could start coming home within the next year. That is according to British defense secretary John Reid. Reid told CNN chief national correspondent John King that the gradual process could begin soon, but he echoed the Bush administration's stance that troops won't leave until Iraq can defend itself. Reid also said they're not ready to set up a time table for the transitional hand over.

Saddam Hussein could stand trial as soon as September. The special tribunal offered up the first official charges against the former dictator. The charges stem from a series of executions and detentions in 1982 in the wake of an assassination attempt. Saddam Hussein's lawyer says he's immune from prosecution under the Iraqi constitution that was written when he was in charge.

And Iraq is moving ahead on its past with the charges against Saddam, but one former member of the U.S. military is focusing more on Iraq's future. More specifically, its children. Retired Army Captain Jonathan Powers joins us now from Buffalo, New York, with his story.

Captain Powers, you spent 14 months in Iraq. You did your duty. You went back home. Yet, you still want to return to Iraq. What has compelled you to go back?

CAPT. JONATHAN POWERS (RET.), U.S. ARMY: Well, actually, when I first came home I sort of wanted to distance myself from the whole experience, and I spent some months to go along talking (ph), along with some kind of (UNINTELLIGIBLE). A met a lot of family of my friends who died over there, a lot of people who were doing work in Iraq. And I realized there's a lot more I could do there and a lot more that would help -- help me get through this experience that I went through for the 14 months I was in the Army.

NGUYEN: Now, while you were in Iraq, you visited a place called St. Hannah's Orphanage (ph). And that was a place that really touched your heart. Maybe it was what spearheaded all of this. Tell me what you saw there. And we're looking at some pictures right now of the children that you met while in Iraq.

POWERS: Yes, we spent a lot of time in a couple different orphanages. And St. Hannah's (ph) was a very special one. We went there on a regular basis. We went there month after month provided these kids clothing and toys and food. We were the only ones doing it. There was no other agencies on the ground besides the Army that was helping these kids out.

And after about eight months of this, one of the nuns took us aside after one of our visits and said, "Listen, you can't come back any more. If you come back, the insurgents or, you know, the terrorists, they'll kill our kids." NGUYEN: Really? Now are these children orphans simply because their parents were killed in the war? And what kind of conditions are they living in, in these orphanages?

POWERS: Well, it's definitely a mix. Some are orphans because their parents have been killed. Or some are economic orphans, because the economy over there is -- is so weak that these parents can't to feed these kids, and a lot of them are forced off in the streets.

Now some of them don't even get into the orphanages. By the time they're 8, 9 years old, essentially the public -- the former public orphanages are such a mess the kids go in there and then they realize there's nothing for them there. And they go off and, you know, start living in the streets, doing street crime and things like that and try to find a future there.

NGUYEN: And do you fear that if help doesn't come soon, these kids aren't given a new lease on life, that they could become a part of the insurgency later on?

POWERS: Yes, absolutely. I mean, if we don't get in there and try to fix the problem and give these kids a hope and a future, then the insurgents will. And they'll follow that trend. And we definitely need to keep them away from that.

NGUYEN: You know, this is a very worth cause, but as I'm sure you've heard, there's so many worthy causes out there. And not to mention the fact that Americans are losing their lives in Iraq. How are you getting Americans to care about these Iraqi orphans?

POWERS: Well, I think just telling the story of what these kids go through. And everyone realized that these are the most innocent victims over there. These aren't the guys that are dressing up and putting a suicide vest on. These are the kids who really had nothing to do with Saddam's regime, had nothing to do with the insurgency. They're just trying to -- to get a future. And people realize that.

NGUYEN: Your goal is to raise $7 million in two years. What kind of support have you been given so far?

POWERS: Actually, the support has been pretty phenomenal. I think the larger chunk of the money, we're definitely going to try to get through government funding. But we get our first fundraiser, actually, tonight. And the -- just here in Buffalo, the results have been phenomenal. And hopefully, that will spread across the country.

NGUYEN: Well, best of luck to you, Captain Jonathan Powers. We appreciate your time today.

POWERS: Thank you very much.

NGUYEN: Still to come on DAYBREAK, thinking of buying a luxury car? We will give you a crash course on which one will keep you the safest.

And this fellow -- yes, that fellow, still in the yellow, Lance Armstrong -- stays ahead of the pack.

Now here's a luck at what else is making news on this Monday morning. It's July 18.

(COMMERCIAL BREAK)

NGUYEN: We'll give you a look now at how the international markets are trading. Tokyo's Nikkei is down five points. The London FTSE, up seven, and the German DAX up 12 points.

Well, Saddam Hussein's attorney is speaking out about the case against the former Iraqi leader. And CNN's Miles O'Brien joins us now for a look at what is coming up on "AMERICAN MORNING."

Good morning, Miles.

MILES O'BRIEN, CO-HOST, "AMERICAN MORNING": Good morning, Betty.

NGUYEN: Hi, there.

O'BRIEN: Good to see you.

We will take a closer look at the first charges filed against Saddam Hussein after more than 500 days in prison. The former dictator accused of ordering the execution of as many as 150 Shiites in 1982, probably just the first of many charges. How will his defense handle the charges? One of Hussein's legal advisers will join us live.

And on a much lighter note, some hang time with the first man ever to soar over the Great Wall of China on a skateboard. Have you seen this, Betty?

NGUYEN: Look at that!

O'BRIEN: Oh, my gosh!

NGUYEN: Oh, my goodness!

O'BRIEN: And lived to tell the tale.

NGUYEN: How many times did he have to practice? Yes, how many time he practice that?

O'BRIEN: And he had -- here's the thing. He was doing this with an ankle that was practically broken. No problem.

NGUYEN: No way.

O'BRIEN: You know, we'll talk to him about why. That's a good question, don't you think? Because it was there, maybe? Or because, just because? And we'll ask him what's next.

NGUYEN: You need to move like that, Miles.

O'BRIEN: He doesn't want to be the -- called the Evel Knieval of skateboarding. But the analogy is apt, don't you think?

NGUYEN: Yes, looking at that, of course.

O'BRIEN: Yes, all right. That's all coming up on "AMERICAN MORNING." Hope you'll stay with us, Betty. I know you're tired, but stay with us.

NGUYEN: I'm there.

O'BRIEN: Yes, OK.

NGUYEN: I'm there.

O'BRIEN: All right. We'll see you.

NGUYEN: See you, Miles.

Time now for a little "Business Buzz" for you this morning. A couple of luxury cars put to the test. And Carrie Lee joins us once again, still at Howley Fair (ph).

Hi, Carrie.

CARRIE LEE, CNN CORRESPONDENT: Put to the test and doing well, Betty. The Audi A6 and the Infinity M35 both got top marks in front and side crash tests.

Now the Insurance Institute for Highway Safety conducts these tests as long as the car manufacturers reimburse for the cars they use. Obviously, they get smashed up, as you can see right there. The test is meant to simulate the impact with a pickup truck or SUV.

For the A6, the results were an improvement over the 1999 version of the car, giving it the double best pick honor. That is the highest rating. The M35 also got good ratings, but because of injury potential in real world situations, it did rate slightly lower than the A6.

The IIHS says cars overall are performing better on the side crash test as side airbags become more common. So that's good news for drivers overall.

NGUYEN: Yes.

LEE: Yes. Meanwhile, futures pointing to a lower open after disappointing profit news from Citigroup, the financial services giant. The Dow component actually missed the Wall Street estimate on profits and sales for the recent quarter. Keeping an eye on that stock, Citigroup execs say the capital markets environment was one of the worst it has seen in years. This is where companies trade stocks and bonds, just like individuals do. So that stock could take a hit today -- Betty.

NGUYEN: All right, Carrie Lee. As always, thank you.

Well, it is almost time to give away that DAYBREAK coffee mug, and we will do it right after the break. But first, here's a look at who is celebrating birthdays on this Monday, July 18.

(BEGIN VIDEOTAPE)

HOLLY FIRFER, CNN CORRESPONDENT (voice-over): Taking care of your heart just got delicious. Garlic, fruits and vegetables, wine and chocolate considered a recipe to fight heart disease. A recent study in the British Medical Journal found these seven super foods lowered cholesterol, blood pressure and other risk factors for heart disease. And researchers say working all seven into your diet could reduce your risk of heart disease by as much as 76 percent.

So how much do you need to eat to reap those benefits? Just sprinkle a little garlic in meals. Just a couple of teaspoons a week reduces risk by 25 percent.

Eat your fruits and veggies. Five or more daily servings packed with powerful antioxidants cut risk by 21 percent.

Go fishing at the grocer. Aim for four ounces of fish four times a week. It's rich in Omega-3 fatty acids, which helps to slow the artery-clogging plaque and lowers risk by 14 percent.

Wine, savor a glass with dinner. The antioxidants in the grapes reduce risk by 32 percent.

And dark chocolate. Go ahead: indulge your sweet tooth. One large candy bar contains polyphenols, which lowers risk by 21 percent.

Holly Firfer, CNN.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

NGUYEN: Welcome back on this Monday. It's 6:52 Eastern, and here is what's making news today.

President Bush welcomes India's prime minister to the White House in about three hours. Ties between the U.S. and India have improved over the past few months, but administration officials say the president likely won't support India's bid for a permanent seat on the U.N. Security Council.

Well, it's sure to be an emotional hearing in an Alabama courthouse today. Convicted Olympics bomber Eric Rudolph will hear from some of his victims when he's sentenced. Under a plea deal, he will eventually receive four life terms for bombings in Alabama and Georgia.

And finally, OPEC releases its monthly report on the oil market today. The big question: how will the oil cartel's take on the markets affect surging oil and gas prices? We'll find the answers to that.

Well, the sentencing of Rudolph is bringing up painful memories from bombing victims in Alabama. Let's check in with CNN's Carol Costello for another look at what's coming up on "AMERICAN MORNING."

Good morning, Carol.

CAROL COSTELLO, CO-HOST, "AMERICAN MORNING": Good morning, Betty.

One of Eric Rudolph's victims will join us live. Emily Lyons was critically injured in a bombing outside of a clinic in Birmingham in 1998. Today, sentencing day, is also Lyons' birthday. She'll get the chance to speak directly to Rudolph during today's sentencing. We'll ask her what she plans to say to him.

And later, Betty, I have a question for you.

NGUYEN: Uh-oh. What is it? I'm scared

COSTELLO: What do you think -- nothing hard. It's too early in the morning.

NGUYEN: I know.

COSTELLO: What do you think is the proper attire for meeting the president?

NGUYEN: Something formal, maybe?

COSTELLO: Maybe not flip-flops?

NGUYEN: Oh, no.

COSTELLO: No.

NGUYEN: Well, if you have some sequins on them, maybe. I'm just kidding.

COSTELLO: Northwestern University's championship lacrosse team was honored at the White House last week. That's why I'm asking you this question, Betty. About half of the women were photographed wearing flip-flops.

NGUYEN: That's trendy.

COSTELLO: Although you can't see their feet in that picture.

NGUYEN: Yes. Trendy. They're young.

O'BRIEN: There's a banner on.

COSTELLO: Yes, take the banner down. Now it's me.

O'BRIEN: Just what I thought.

COSTELLO: I have flip-flops on right now.

NGUYEN: There they are. COSTELLO: There, half the lacrosse team wearing flip-flops to meet President Bush. You see him standing right in the middle there. Fashion faux pas, U.S.? Well, the "90 Second Pop" will weigh in later on "AMERICAN MORNING."

NGUYEN: Yes. Their mothers may not be too happy about that. OK.

COSTELLO: Oh, they've already expressed their displeasure about them.

NGUYEN: Really?

COSTELLO: Oh, yes.

NGUYEN: I'm looking forward to that one. Thanks, Carol.

COSTELLO: Sure.

NGUYEN: Time now to give away that DAYBREAK coffee mug. You really want one.

MYERS: Yes, but you know, those flip-flops weren't, like, the $2 version.

NGUYEN: Well...

MYERS: I've seen flip-flops up in the $50 range now.

NGUYEN: Yes, but I can't tell. It wasn't a tight shot. But some of them looked kind of regular. I mean, that's just me.

MYERS: Maybe a closed toe shoe. There you go.

NGUYEN: Sure.

MYERS: Here's -- here's your question and your answers from Friday. Which two shipping companies are teaming up to deliver the latest Harry Potter novel? And the answer was UPS and the post office.

And how many CPO cars, how many certified pre-owned cars were sold last year, 2004? Would you believe: 1.58 million cars that qualified as CPO, which means were inspected, extra warranties and all that kind of stuff.

NGUYEN: Wow.

MYERS: The winner: Ben Weingrad from West Hartford, Connecticut. Congratulations, Ben. You are the winner of today's DAYBREAK coffee mug.

For tomorrow, here are the questions you have to answer. How many copies of the new Harry Potter novel sold in the first 24 hours, from midnight to midnight? Name the two luxury vehicles given the highest marks in recent -- recent crash tests. Just had that story on five minutes ago. Can't miss that one.

CNN.com/Daybreak. There's a link. Click it and give us your answers -- Betty.

NGUYEN: All right. There's more DAYBREAK coming up. Don't go away.

(COMMERCIAL BREAK)

(WEATHER REPORT)

NGUYEN: Now in the news, Chad, CNN has learned this morning that at least three of the London bombing suspects traveled to Pakistan last year. We're looking at pictures just obtained by CNN of the three suspects in Pakistan. What they were doing there is still unknown. Now all three did die in the bombings that killed 55 people.

Hurricane Emily has lost some steam over Mexico's Yucatan Peninsula. It came ashore as a Category 4 storm earlier this morning, but it has now weakened to a Category 2. Emily is packing winds of 110 miles an hour.

And Taiwan is being battered today by a powerful typhoon, packing winds over 100 miles an hour. The island is shut down. Some bridges have even collapsed. There's also been some flooding, mudslides and power outages.

From the CNN Center in Atlanta, I'm Betty Nguyen. "AMERICAN MORNING" starts right now.

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