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CNN Live At Daybreak

London Terror Investigations; Rumsfeld's Surprise Iraq Visit

Aired July 27, 2005 - 06:00   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 Wednesday, July 27.
It has been a busy morning for British terror investigators. They have made a string of new arrests in Britain's second largest city. We'll bring you a live report straight ahead.

Also, are they crime fighters or criminals? A new report says Iraqi police should take a hard look at their own ranks.

And honor, service and coping with tragedy -- President Bush has a special message for the Boy Scouts this morning.

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

COSTELLO: And good morning to you.

More on the British terror probe in just a minute.

Also ahead...

(MUSIC AUDIO CLIP)

COSTELLO: An out of this world wake up call. NASA serenades the shuttle astronauts.

And money, money, money -- do you save it, invest it or do you just blow it? We'll tell you what money type you are.

But first, now in the news, arrests were made just a few hours ago in connection with the July 21st bombings in London. Police in Birmingham, England took four men into custody. We've -- we'll go ahead there live for more details straight ahead.

Sentencing is scheduled today for the man convicted of plotting to blow up Los Angeles International Airport on the eve of the millennium. Ahmed Ressam was convicted four years ago. His sentencing was finally set after he stopped cooperating with government terrorism investigators.

The presidential line of succession may be changing to move homeland security chief Michael Chertoff up the list. The Senate approved a bill to move the post up from last in line. If the House approves, the homeland security would be eighth, between the attorney general and the interior secretary.

To the Forecast Center now and Chad. (WEATHER REPORT)

COSTELLO: One of the prime suspects in the London terror bombings may be in custody this morning. But police are not confirming that fact. But they have arrested four men in connection with the July 21st bombings.

For the latest, let's head to Birmingham, England and CNN's Senate Intelligence Committee Nic Robertson.

What can you tell us -- Nic?

NIC ROBERTSON, CNN CORRESPONDENT: Well, Carol, I just spoke with some local residents, a young man who told me he lived just across the road from the man arrested. He described the man arrested as a Somalia. I asked him is he among the photographs that the police have released of the four most wanted men in England. He said no.

We're not hearing from the police definitively whether any among the four people arrested in Birmingham today are among the most wanted, are among those four most wanted men in Britain at the moment, the bombers from last week.

The police operation began here just a little over six hours ago. The police raided two different premises. The first premises they raided, they used a taser gun to disable the man inside the house. Local residents say that they heard shots being fired, five shots being fired. There are reports that the door was ripped off the house. That man, we're told by neighbors, that police bundled him out of the house and took him into a nearby vehicle. Other neighbors have reported the man was taken away by helicopter. That's not clear.

At the other address, the three men arrested there are still being held in a Birmingham police station at this moment for questioning. That perhaps indicates that they are not so central to the police investigation into those failed bombings last weekend. But the one man arrested using a taser gun, quickly bundled into a police car, he is now in a central London police station, we are told a high security police station, where he is being questioned in connection with those failed bombings last week.

But, again, his role in those bombings is not clear. And one neighbor I spoke to, when I asked them was this man among the four bombers whose pictures the police have been circulating for several days, he said no. But, again, we're still waiting for police confirmation and guidance on this -- Carol.

COSTELLO: OK, a couple of questions for you, Nic.

These shots fired, were the police -- you said the police had used a taser gun on this suspect, but there were also shots fired.

Who was wielding the gun?

ROBERTSON: Well, it appears at this stage that perhaps the weapons fired that the local residents say they heard were fired in order to break the door down, a forced entry into the house. It's not clear. It may be that the residents are mistaken in hearing bangs on the door and mistaking that for gunshots. Obviously, there's a lot of attention being paid in Britain at the moment to the use of firearms, given that a man was mistakenly shot and killed last week by police.

It is also quite possible that the police may have had to use weapons in entry to the building. But in arresting the man, the police have said that in the actual arrest phase of the operation, no firearms were used -- Carol.

COSTELLO: The other question, you said that this man seems to be of Somali descent, and that would be another connection to East Africa.

ROBERTSON: It would be and certainly we know that the two men that have been named so far as the bombers from last week by the police, one was of Somali descent, one was of Eritrean descent. They both moved to Britain in 1992. One was 11 when he arrived, one was 14. They had been sharing or using the same address in north London that is currently the center of an ongoing police operation there. Forensic teams have been combing through that apartment and a lock up garage facility associated with the armed police. Police have taken away material that they say is of interest to them.

So there does seem to be a strong East Africa connection in the bombings of last week, unlike the weekend before, when the -- unlike the bombings of two weeks before, when there -- when the men involved in that, three of the men, at least, were of Pakistani descent -- Carol.

COSTELLO: Nic Robertson reporting live from Birmingham, England this morning.

When you get more information, we'll get back to you.

American troops in Baghdad get an unexpected visitor this morning, Defense Secretary Donald Rumsfeld. He's making his tenth trip to Iraq since the war began.

So let's head live to Baghdad to see what he's up to.

Aneesh Raman is there -- good morning.

ANEESH RAMAN, CNN CORRESPONDENT: Carol, good morning.

The last time the secretary was here was mid-April, when this government was just forming. Now, it is officially in control. He met earlier today with Iraqi Prime Minister Ibrahim al-Jaafari. They had a press conference shortly after that meeting.

He will also be meeting with top U.S. military commanders and presumably with U.S. forces here on the ground.

Now, speaking to reporters on his way in, we got a sense of what he's here to talk about, the messages he's carrying. First, he called upon the Iraqi government to be much more aggressive in its dealings with Iran and Syria specifically, saying that those countries need to do much more to secure the borders and to prevent the ongoing flow of firefighters into Iraq.

He also is going to stress in his meetings that the Iraqi government must meet that deadline of August 15 now looming just weeks away, by when they have to have the constitution written, so it can go forward to a referendum in mid-October. If they don't make that deadline, Carol, the process that would put in place a government that is constitutionally elected by the end of this year is in jeopardy. And it puts a lot of people in concern that the insurgency could benefit from that. So Rumsfeld pushing that message, as well, with the Iraqi government.

Now, his visit comes, Carol, just after a Pentagon report came out last week detailing what the current state is of Iraqi security forces. The people on the ground tell us there are about 174,000 trained and equipped Iraqi security forces, but only a small number, Carol, are doing operations on their own. The secretary will look at those training programs today -- Carol.

COSTELLO: Yes, we're going to talk a lot more about those training programs a little later on on DAYBREAK.

Aneesh Raman live in Baghdad.

And we should mention that Donald Rumsfeld is expected to speak soon to the press. You can see the press room ready there in Baghdad. When Donald Rumsfeld takes the podium, of course, we'll take you back to Baghdad live.

Rumsfeld's arrival in Baghdad comes while some are questioning the efforts in Iraq. A new CNN/"USA Today"/Gallup poll shows that 43 percent are confident the U.S. will win the war. Another 21 percent think it's winnable, but won't be. And 32 percent of people polled think the United States cannot win the war in Iraq.

In just a few hours, investigators in Aruba may have some new information on Natalee Holloway's disappearance. Right now, they are emptying a drainage pond near the Marriott Hotel in Palm Beach, Aruba, where Natalee Holloway was last seen. The hotel is across the street from where two brothers say they dropped her off the night she disappeared.

We'll have a live report from Aruba coming up at the bottom of the hour.

The big Boy Scout jamboree in Virginia is scheduled to go on pretty much as planned today. About 40,000 Scouts are attending the event. But they've added a memorial service for four Scout leaders who were electrocuted on Monday. They died while erecting a dining hall tent for the Scouts. Their sons, though, are heading home to Alaska.

(BEGIN VIDEO CLIP) GREGG SHIELDS, BOY SCOUT SPOKESMAN: Our hearts go out to the families -- excuse me.

Our hearts go out to the families of these dedicated Scouts leaders, who gave so much to their sons, their troupes and their communities.

(END VIDEO CLIP)

COSTELLO: President Bush will address the Scouts tonight after the memorial service. The president's appearance at the event had already been planned.

In other "Stories Across America" this morning, Elizabeth Smart's accused kidnapper will not face a trial, at least for now. A judge ruled that Brian David Mitchell is not competent to help in his own defense. That means kidnapping and sexual abuse charges will wait until his condition changes. Elizabeth Smart's father says his daughter will be ready to testify if a trial is ever held.

The BTK killer's wife was granted an emergency divorce. Paula Rader said her marriage to a confessed serial killer was dangerous to her mental health. A Kansas judge agreed and gave her immediate freedom and all of Dennis Rader's belongings. They were married for 34 years.

Surf shop owner Donna Frye is now one step away from becoming mayor of San Diego, California. She is leading the vote right now, but probably won't get the 50 percent needed to avoid a runoff. San Diego Mayor Dick Murphy resigned amid a scandal last month and his interim successor was convicted of corruption.

The White House is prepared to release some, but not all, of the documents Supreme Court nominee John Roberts prepared and used while working at the White House. Roberts held the position of deputy solicitor general during the first Bush administration. In other words, he was one of the president's lawyers. The White House says documents from that period should remain private due to attorney- client privilege. Information from his service during the Reagan administration is being made available.

Discovery's crew is already hard at work this morning. They're using the new robotic arm to examine the exterior of the orbiter. What they're looking for is a possible missing piece of tile. NASA noticed what they called a debris event during lift-off. Now they're trying to determine if there is any reason for concern. The event was caught by one of the new cameras that was added after the Columbia disaster.

That crew is still very much on the minds of these Discovery astronauts.

(BEGIN VIDEO CLIP)

EILEEN COLLINS, COMMANDER: And finally, we reflect on the last shuttle mission, the great ship Columbia and her inspiring crew -- Rick, Willie, Mike, K.C., Dave, Laurel and Elan. We miss them and we are continuing the mission. God bless them tonight and God bless their families.

Good night.

(END VIDEO CLIP)

COSTELLO: Of course, the Challenger disaster happened because a piece of debris hit the space shuttle. And, of course, that caused it to, well, to explode when it came back to land on Earth. As I said, they're still checking things out on this latest shuttle mission. They haven't seen any damage as of yet.

CNN's space correspondent Miles O'Brien will join us live from the Kennedy Space Center at the bottom of the hour with more on this mission and the possible tile problem.

Still to come this hour, more Americans will ride out the heat wave sweeping the country. We'll check out some of the unusual ways people are staying cool.

And, what disguise could the enemy insurgents be lurking behind in Iraq?

Plus, getting to the bottom of a pond in Aruba. Will investigators find the answers to provide Natalee Holloway's family with some closure? We'll take you live to Aruba.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 6:17 Eastern.

Here's what's all new this morning.

British police have arrested four more men in connection with the attempted bombings on London's transit system. One man was arrested in central London. The other three were taken into custody in Birmingham, 100 miles north of London.

In money news, General Motors says you'll still be able to get low cost car loans thanks to a new deal. G.M. plans to sell up to $55 billion in loans to Bank of America. G.M.'s struggling to raise profits.

In culture, Jerry Lewis will get a special Emmy award just days after this year's Muscular Dystrophy Telethon. He's being given the governor's Emmy for his long time work with the telethon. Past recipients include Johnny Carson and Bob Hope.

In sports, this is tough to watch, Red Sox pitcher Matt Clement is in the hospital after being hit by a line drive last night. Clement was taken off the field in a stretcher. You'll see that soon. He was hit right in the side of the head -- in the head, rather. You'll see it here again. He laid on the ground for about five minutes without moving. He's being kept in the hospital this morning for observation. Teammates say, though, they hear he's doing OK, and we hope that's true -- Chad.

Oh, I can't look at that again -- Chad.

MYERS: That ball had so much velocity, Carol, that it actually made it into the outfield after hitting him. We're wishing him all the best today. Obviously, we hate to see that. He's got 60 feet of no chance there.

(WEATHER REPORT)

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

Still to come on DAYBREAK, you might call it a whole new take on reality TV -- the first series to put characters in the boots of American soldiers on the front lines in Iraq.

And how dangerous was that debris event, as NASA calls it, during the launch of Discovery?

But first, good morning, Raleigh.

We'll be right back.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Time now for a little "Business Buzz."

Brisk sales at home and abroad did not keep Amazon.com's profits from plunging. The Internet retailer reports its second quarter net income dropped to $0.12 a share, from $0.18 a year earlier. That's a 32 percent drop. But it's still better than analysts expected.

"T.V. Guide" is getting an extreme makeover. The 52-year-old weekly is trying to reverse financial losses, so it's getting rid of its small format and will relaunch this fall as a regular sized, glossy magazine with more pictures and stories about shows and stars. In other words, it'll be, well, it'll be kind of like "People" magazine now. It'll cost less, too, I mean than the original "T.V. Guide."

You know exactly how you're spending and investing your hard earned money, right? But why are you buying what you buy? Have you ever asked yourself that question?

Well, the people at "Money" magazine say a lot of your financial decisions are driven by unconscious tendencies you are not even aware of. And they've got a quiz to help you figure out what your money type is, what your money personality is. So, are you ready to find out?

MYERS: Sure.

COSTELLO: Are you scared?

MYERS: A little scared.

COSTELLO: I'm scared.

So these are some of the questions in this quiz. And then we're going to have somebody in from "Money" magazine to explain.

MYERS: OK.

COSTELLO: So, you want to read the first question, Chad?

MYERS: I am most likely to spend a tax refund on: A, my favorite hobby; B, helping my friends; C, strengthening my financial security; D, buying a tech gadget; or E, alternative minimum tax.

COSTELLO: That's really not in it, but...

MYERS: No, no, but that's what I spent mine on.

COSTELLO: ... you get the gist.

MYERS: You know, I would probably say strengthening my financial security. If I got a tax refund, I would buy some more stock with it.

COSTELLO: Well, if I were still single it would be A, my favorite hobby.

MYERS: What, shoes?

COSTELLO: Now that I'm married, it would be strengthening my financial security.

MYERS: What is your favorite hobby, Carol?

COSTELLO: My favorite hobby?

MYERS: Sure.

COSTELLO: Hiking.

MYERS: Oh, OK.

COSTELLO: So, see?

MYERS: Yes, sure.

COSTELLO: I went to Arizona to the Grand Canyon...

MYERS: Vacations.

COSTELLO: ... to hike.

MYERS: OK, fine.

COSTELLO: OK.

MYERS: Good, good.

COSTELLO: So there's another question, too.

MYERS: What's your money type? When the market and my stocks go up, I often feel excited and stimulated; enthusiastic and inspired; cautious and prudent; or skeptical and calm. And I...

COSTELLO: Or I don't even pay any attention.

MYERS: I would definitely be an A on that one. I've got a couple of biotechs that have been going through the roof lately and I can't even stop watching them all day long until the market close, so.

COSTELLO: Ooh, that could be dangerous, though.

I think I'm B, enthusiastic and inspired.

MYERS: All right. Inspired to buy more.

COSTELLO: All right.

We've got more questions for you, plus a guest, as I said, from "Money" magazine. That's just ahead here on DAYBREAK. And we'll find out what your personality type is. So I hope you were answering the questions along with us.

MYERS: And there are a bunch of them on the Web site, as well, if you want to go take it off.

COSTELLO: Very good advice.

MYERS: In the magazine, of course.

COSTELLO: Excellent advice.

MYERS: Sure.

COSTELLO: TV shows about war are nothing new. But here's something you probably have not seen. The new program "Over There" gets real about a current conflict, dramatizing the war in Iraq. The show's executive producer says he was initially reluctant to make such a potentially controversial show. But he also defends the show's violent content, saying it's part of the reality of war.

(BEGIN VIDEO CLIP)

STEVEN BOCHCO, EXECUTIVE PRODUCER: There is no safe in Iraq. Everybody is at risk. And because everybody is at risk and because the violence is so pervasive, I don't know how you do a show about this conflict without depicting the violence that, you know, that exists there.

(END VIDEO CLIP)

COSTELLO: That's Steven Bochco.

He says he's always trying to avoid putting politics into his work and he insists he's not making a political statement with this show. It airs at 10:00 p.m. Eastern tonight so you can decide for yourself.

A progress report on the Iraqi security forces is due out soon and it is not so positive. One finding? Some recruits are allegedly insurgents. It's a story "Just In Time" this weekend.

With more, "Time" correspondent Tim Burger.

Good morning, Tim.

TIM BURGER, "TIME" MAGAZINE CORRESPONDENT: Hi.

COSTELLO: This report is put out by the Pentagon and the State Department. It also says something about the numbers. What, there are 171,000 security forces, Iraqi security forces, that is. But of that, how many are prepared to deal with what's going on in Iraq?

BURGER: Well, apparently the recruiting for the Iraqi police service has been lackluster. They've gotten a lot of people in there who are barely literate, who may not be physically qualified to be police officers and some of whom, as you mentioned, appear to be insurgents infiltrating to help their buddies on the outside mount attacks.

COSTELLO: But do we know how many?

BURGER: Well, I don't think they do know exactly how many. It's just like any intelligence service trying to root out spies -- they blend in. The good thing about it, though, is that this report says that, you know, the recommendation is made that we should allow the Iraqis to do the background checks on candidates for the police service because when the coalition had more of a role in it, we just weren't doing a good job of sorting out in that society who's the good guys and who's the bad guys.

Now the Iraqis have a lot more responsibility for it, so hopefully it will work smoother.

COSTELLO: So can the Iraqi government sort that out?

BURGER: Well, again, hopefully, you know, it's hard for us to understand their society. That's quite clear. So people who are going to be doing the background checks now will be the people who are going to be the neighbors of these police services and, you know, their families are going to be the ones protected or not protected if they get a -- you know, depending on whether they get qualified officers in there.

So hopefully it'll be a lot smoother.

COSTELLO: So if insurgents are amongst the ranks and they're found out, what happens to them?

BURGER: Oh, I'm sure it's not a pretty fate. I mean there's quite rough justice in that part of the world and the Iraqis have a lot more control over it. But certainly, at the very minimum, they'll be removed from the police force and I'm sure imprisonment or worse is in store for those who are truly found to be insurgents.

COSTELLO: Tell us something positive, because we all want to hear something positive that has come out of this report.

BURGER: Well, the positive thing that they were noting in there is that, you know, despite the massacre -- I mean 1,600 of these police recruits have been killed in just one year -- despite those sorts of statistics, recruits keep showing up. People still want to join. And most of them are not insurgents. Some of them are, and that's bad, because it helps the insurgents get inside information and be more effective. But there are, you know, good Iraqis trying to show up and do an honest job and protect their country, even in those bad conditions. So that's a positive thing.

And, also, the coalition is recognizing that they have to give the Iraqis more local control over the people who will be protecting their families.

COSTELLO: OK.

If you want to know more, the article is in "Time" magazine this weekend.

Correspondent Tim Burger joining us live.

We thank you.

BURGER: Thanks, Carol.

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