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American Morning

New Revelations Broaden Scope of White House Wiretapping Controversy; U.S. Troops Fight to Save Iraqi Baby; High Winds Spread Wildfires in Texas, Oklahoma

Aired December 28, 2005 - 06:00   ET

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


MILES O'BRIEN, CNN ANCHOR, AMERICAN MORNING: Good morning to you. I'm Miles O'Brien.
CAROL COSTELLO, CNN ANCHOR, AMERICAN MORNING: And I'm Carol Costello. Thank you for joining us this morning. Soledad has the day off.

O'BRIEN: Fire sweeps through thousands of acres of grassland in Texas and Oklahoma, burning homes, threatening entire towns. And more strong winds are on the way. We'll have forecast for you.

The White House answering charges it went too far listening to American's phone calls. Could the wiretap flap now jeopardize some important anti-terror trials? That story is ahead.

Enron's former chief accounting officer Richard Causey reportedly ready do make a deal with prosecutors. What does it mean for the man at the top, Ken Lay.

COSTELLO: And all that fuss and inconvenience of the three-day New York City transit strike, now the two sides have a deal.

And former Major League pitcher Jeff Reardon arrested for robbing a jewelry store. We'll tell you his side of the story on this AMERICAN MORNING.

O'BRIEN: We are watching a developing and dangerous story this morning. Wildfires threatening thousands of people in Oklahoma and Texas. A severe drought is causing tinderbox conditions. Dozens of homes burned yesterday in towns near Oklahoma City. Also, a lot of wind, so much so that helicopters used to dump water were grounded.

In Texas, several homes have burned. No specific numbers just yet. The governor's office calls this the worst fire threat in five years there. We'll go live to Texas in just a few moments with some reports from the fire lines.

Rain is the story this morning on the West Coast, where they will be waking up to another winter deluge. Take a look as an earlier wave of snow moved across Washington yesterday. Driving especially dangerous in the mountain areas due to deep snow and low visibility. And more snow is on the way today in the Sierras and northern Nevada.

For more on your weather let's check in now with Jacqui Jeras at the CNN Weather Center. (WEATHER FORECAST)

COSTELLO: We showed you this dramatic video Tuesday. A man in New Orleans waving a knife, confronted by police. Now increasing criticism of the police response. A police investigation has been launched. Officers say they shot to death 38-year-old Anthony Hayes (ph), after he lunged at them with that knife.

The police superintendent is standing behind his officers, saying the officers lives were in danger. He is expected to hold a news conference later this morning, but we will talk to him first. Superintendent Warren Riley is our guest in the next hour of AMERICAN MORNING.

In California a Katrina scam undone. As we first reported, former Red Cross workers are among dozens of people accused of defrauding the organization of hundreds of thousands of dollars; money that was supposed to help hurricane victims. Details now from Correspondent Kareen Wynter.

(BEGIN VIDEOTAPE)

KAREEN WYNTER, CNN CORRESPONDENT (on camera): The FBI is now widening its investigation after an elaborate scheme that bilked Hurricane Katrina victims out of more than $300,000 in emergency funds.

(voice-over): Officials say it all began at this Bakersfield, California national Red Cross call center. Twenty-two contract workers responsible for taking calls from displaced victims and providing them funds, allegedly helped themselves to money by setting up fake accounts. Even enlisting the help of family members and friends, who would then turn in claim tickets at local Western Unions.

So far, 49 people have been indicted. The Red Cross, which alerted the FBI after an audit, says it is now working on streamlining the system to prevent further corruption.

In Bakersfield, California, I'm Kareen Wynter.

(END VIDEOTAPE)

COSTELLO: And later on AMERICAN MORNING we'll talk to the head of the Red Cross, as well as to a U.S. attorney who is handling the case.

O'BRIEN: Could those warrantless wiretaps mean some terrorists will walk free? That's the latest wrinkle in the White House campaign to spy on Americans. According to "The New York Times", several lawyers defending terror suspects would like to find out if the case against their clients were built on secret wiretaps.

The White House still insists those wiretaps, without warrants, are legal and necessary. Dana Bash at the president's ranch.

(BEGIN VIDEOTAPE) DANA BASH, CNN WHITE HOUSE CORRESPONDENT (on camera): President Bush is biking, clearing brush, enjoying some of his favorite pastimes out of sight here at his Crawford ranch, but meanwhile the White House is still refusing to confirm that the National Security Agency is collecting and analyzing large volumes of information, known as data mining, with the help of U.S. telephone and Internet companies, something that was first reported by "The New York Times" over the weekend.

But a White House spokesman is insistent that Mr. Bush's 2002 directive allowing the NSA to conduct domestic surveillance is limited to terror suspects. White House Spokesman Trent Duffy saying, quote, "This is a limited program. This is not about monitoring phone calls designed to arrange Little League practice or what to bring to a potluck dinner.

"These are designed to monitor calls from very bad people to very bad people who have a history of blowing up commuter trains, weddings, and churches."

(on camera): But that argument does not hold sway among Democrats and even some Republicans, who call this a violation of privacy and maybe even the law and vow to continue to press the White House for more information.

Dana Bash, CNN, Crawford, Texas.

(END VIDEOTAPE)

COSTELLO: In Iraq, amid the violence, there is sometimes something uplifting to report. Our Arwa Damon is in Baghdad with a story of some battle-hardened U.S. soldiers trying to save a baby girl.

Arwa, how did the soldiers come across this girl?

ARWA DAMON, CNN INT'L. CORRESPONDENT: Good morning, Carol.

It was during a routine cordon and search, about three weeks ago. They went out into this dangerous Abu Ghraib neighborhood looking for insurgents, but instead this time the found something else.

(BEGIN VIDEOTAPE)

DAMON (voice-over): Another risky night mission for these soldiers of the Georgia National Guard in the deadly Abu Ghraib streets. Not in pursuit of insurgents, but returning to a home to try to save a life.

Three-month-old Noor has a severe form of Spina Bifida. Iraqi doctors had predicted that she'd be dead by now. But she had clung onto life. Soldiers first met her searching the house and were unable to forget her.

SGT. MICHAEL SONEN, U.S. ARMY: We, as a group, collectively decided this is going to be our project and if this is the only contribution that we have to defeating the war on terrorism, this is going to be it.

DAMON: We're not showing her family's face, they fear retaliation by insurgents for seeking American help, but they also know this is the only chance to save Noor's life.

SONEN: We've had some time to spend with the family and they're very, very appreciative of the opportunity that they have to try to save the live of their daughter. And it does great things for us as soldiers and as Americans.

DAMON: Upset by the commotion in the middle of the night, too young to realize what is happening, Noor cries out. Accompanied by her father and grandmother, she begins the first step in her long journey toward a chance at life. Her protectors alert, despite their mission, these are still dangerous roads.

Now back safely on the U.S. military base, Noor sees the first of many examinations. In the few days, if the visas come through, she should be on her way to Atlanta for lifesaving surgery.

(END VIDEOTAPE)

DAMON: And, you know, Carol, for these soldiers attached to the 10th Mountain Division, Baby Noor has provided something of a distraction for them, a rallying point, if you will, for them the ability to concentrate on saving one baby's life helps them immensely as they go through the daily grind of fulfilling their mission here in the dangerous streets of Iraq -- Carol.

COSTELLO: So everything is set up in Georgia? Surgeons are willing to perform the surgery on this little girl for free. Time is of the essence here, so what's with the visa process? And what's next for Noor.

DAMON: Absolutely. Time is of essence. You know every day that goes by makes the surgery, when it is to be performed, even more risky and dangerous. Now, as far as we are aware the passports have been issued, the grandmother will be traveling with Baby Noor.

We're not -- the military is not telling us exactly when they're going to be traveling except that it will be in the next few days, due to operational security, until they're able to get her out of the country.

Now, as far as we are aware, the visas though, should be stamped into the passports as soon as possible, within the next few days. That's what we're hearing, Carol.

COSTELLO: All right. Arwa Damon, thanks very much.

And coming up at 8:30 Eastern, we'll see what's involved in the surgery for Baby Noor. We'll introduce you to the chief of neurosurgery at Children's Healthcare of Atlanta. He will be performing the surgery.

Also this from Iraq, four children happy to be out of a New York hospital today after surgery to save their lives. AMERICAN MORNING has been checking on these kids since they arrived almost two weeks ago.

The three boys and a girl, ages six to 11, all here for operations to fix potentially fatal heart defects. They're travel was paid for by Gift of Life International. The surgery courtesy of Montafori (ph) Hospital, in the Bronx.

The kids and their fathers are in the United States for another few weeks. And Soledad is spending time with the families throughout their stay. We'll take you behind the scenes as the kids recover and prepare to return home to Iraq.

O'BRIEN: An emergency landing in Seattle yesterday. An airliner with a hole in its skin. And Alaska Airlines MD80 was forced to land after a foot-and-a-half long hole ripped into the side of the aircraft. Apparently, it was caused by a small dent, originally, by a baggage cart on the tarmac before take off.

These are pictures coming off of a passenger's camera phone, showing flight attendants helping passengers with the oxygen masks as the plane was losing altitude and loss cabin pressure. No one was hurt in that incident.

More now on those terrible fires in Texas and Oklahoma. Several homes have been destroyed, scores of people have been evacuated. Let's get to northern Texas, now, Arlington. Yolanda Walker of CNN affiliate WFAA with us now.

Yolanda, what are the concerns this morning?

YOLANDA WALKER, REPORTER, WFAA NEWS: Well, Miles, there are fire crews standing by in this area to make sure nothing else happens and to make sure that the people who live on this stretch of road are safe.

But I'm standing in front of two mobile homes that were destroyed in this area, in front of people's livelihoods. Probably all they know and all they've had. Six mobile homes in this area were destroyed along with two homes, leaving 13 people homeless.

And let's show you what it looked like yesterday, when this all began. It started as a very small grass fire, according to fire investigators. Areas of Fort Worth and Mansfield and other departments assisted Arlington. These are areas that are east of -- or west, rather, of Dallas. Five counties in all, west of Dallas, suffered some grass fires. In two of those counties they had 40 grass fires apiece.

And there is one death to mention, as well. In Gainesville, which is north of the Dallas/Fort Worth area. A woman trying to hose down her property got caught in the flames and died as a result of her injuries.

In the areas of Kennedale, which is just west us, where we are now. They did lose a home in that area. But firefighters worked quickly to make sure that it stopped short of an apartment complex. And so this morning, a lot of fire crews on standby to make sure nothing else happens.

But the wind is picking up. And the most amazing thing about this yesterday was watching the grass fires change directions as the wind changed directions. So, it was hit or miss on several of the homes in the area. Some of the firefighters also injured, but one death to speak of.

O'BRIEN: All right. Thank you very much, Yolanda.

Coming up an identity theft alert, one company looses credit card information and Social Security numbers for more than 200,000 people.

COSTELLO: Also, new Enron news. Could a new plea deal lead prosecutors closer to Enron's former top exec?

O'BRIEN: Plus, the latest on that restraining order against David Letterman. The woman, who says he used code words to harass her, suffers a big legal loss. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: It is 6:15 Eastern time, for a check of the headlines now.

A three-day strike, gridlock, angry commuters, and now it's over. We're talking abut the New York City transit talks. The Transit Workers' Union executive board has approved a new contract. It now goes to union members for final ratification.

In the deal, management dropped its demands for pension cuts, a sticking point for the union. And the union agreed to have workers contribute a bit more for healthcare.

Police in Milwaukee, Wisconsin are looking for a group of teenagers suspected of dragging a man from his car and beating. It is the latest in a string of high-profile mob beatings in the area.

Witnesses say the man honked at a group standing in the street. They surrounded his car, dragged him out and beat him. The man has severe head trauma. Police say it is not clear if he will survive. No word on a motive.

Senate Judiciary Chair Arlen Specter is not happy with how the Saddam Hussein trail is going so far. Specter met with the judge overseeing the trail during a visit to Iraq on Tuesday. He says that Hussein continues to disrupt the proceedings and is calling on the judge to rein him in. The trial is set to start up again next month.

An "Identity Theft Alert" for you now. Marriott is telling thousands of its customers that their personal information may have been stolen. The company says back up computer tapes for 200,000 of its customers, mostly timeshare owners, are missing. The tapes contain Social Security and credit card numbers. So far, no one has reported any misuse. A blastoff in Kazakhstan, the European Space Agency launches the first of 30 satellites in its Galileo navigation program. It is designed to help end Europe's reliance on the GPS, which is controlled by the U.S. military.

And American icon has died, Michael Vale. I'm sure you remember him. He was the time to make the doughnuts guy from the Dunkin' Donuts ads. You know, time to make the -- he passed away this weekend. Vale played Fred the baker for 15 years, until he retired in 1997. He also appeared in more than 1,300 other TV commercials. Michael Vale was 83 years old.

Let's get a check on the weather. Jacqui Jeras is at the Weather Center in Atlanta.

(WEATHER FORECAST)

O'BRIEN: Carrie Lee is here and Enron's accountant is cutting a deal. Might be singing like a canary, huh?

CARRIE LEE, CNN FINANCIAL CORRESPONDENT: A very big development here. The Associated Press reporting a key defendant in the Enron criminal trial has struck a plea deal with prosecutors and this could really bolster the government's case against company found Kenneth Lay and former Chief Executive Officer Jeff Skilling.

Richard Causey, expected to plead guilty today, this afternoon, to one or more of the 34 criminal counts against him. And he's agreeing to testify against his former bosses in exchange for a leaner prison sentence than he would have received if convicted on all counts. Thirty four counts against him, fraud, conspiracy, insider trading, laundry list here.

Bottom line these trials are expected to start next month. This development could delay the trials, but over all shorten the length of the trail. He is a key witness here.

O'BRIEN: To say the least. As the accountant he would be intimately familiar with all those amazing machinations.

LEE: Absolutely. He's the guy who was basically rubber stamping everything. And remember Chief Financial Officer Andrew Fastow, also struck a deal. He's in jail right now. But --

O'BRIEN: This could be bigger than Fastow in some respects.

LEE: Oh, absolutely, absolutely. Ken Lay and Skilling the two top guys, so.

O'BRIEN: Right, yes.

LEE: It's very interesting.

COSTELLO: Thank you.

O'BRIEN: All right. Thanks very much. COSTELLO: You're "Morning Coffee". It's straight ahead. Coming up -- I know it's not the biggest story ever but -- very rough times for a dog in Wisconsin. He was rescued after ending up frozen to some railroad -- look at that face. He was frozen to some railroad tracks and his family might not want him back.

O'BRIEN: Why! Why!

COSTELLO: Well, we're going to tell you.

O'BRIEN: I want him. No, I don't have room for him -- but I want him!

COSTELLO: I know, he's the cutest. We'll tell you more in "Morning Coffee".

(COMMERCIAL BREAK)

O'BRIEN: Some Earth, Wind and Fire, this morning to get you going.

COSTELLO: That's right, I've got "Morning Coffee".

O'BRIEN: "Morning Coffee" time, let's do it.

COSTELLO: That's right, to get you going as well.

You know, we told you the sad story of Jeff Reardon, the former star relief pitcher. He was arrested in that bizarre jewelry store robbery.

O'BRIEN: Yes. I'm a big fan of his, too. I just feel terrible. It's tragic.

COSTELLO: A lot of people were. And apparently he's a very nice man. But he's been suffering through some family tragedies. His 20-year-old son died of a drug overdose. That was two years ago, apparently he never got over it. He's on five different kinds of medication for depression. He just had angioplasty. He's on medication for that.

And he told friends and family and fans that he's sorry and he thinks his medication might be to blame.

You know, he walks into this jewelry store; he hands a note over, saying he has a gun. They give him some money. He walks -- I mean, there are differing reports on this -- one reports says he walks to a restaurant and he's holding the money. And they arrest him without incident.

There are other reports that say he actually walked to the security guard in the mall where the jewelry store was and said I just robbed a jewelry store, arrest me.

O'BRIEN: I just hope the system treats him gingerly, given all that has occurred in his life. COSTELLO: We're going to talk a lot more about this later on AMERICAN MORNING.

O'BRIEN: Yes.

COSTELLO: And I hope you're right, I hope they're right.

Recent polls show that Americans are less and less polite. So listen up, if you get presents for a wedding, shower, graduation, whatever, you have to send a thank you note, personal and handwritten. Tom Farley (ph) of "Town & Country" tells "USA Today" that a thank you e-mail might be acceptable for Christmas cocktails or a New Year's open house. But one of those mass e-mails to everyone that just says thanks for the gift?

O'BRIEN: That's not good.

COSTELLO: People are doing that for their wedding!

O'BRIEN: Have you seen those madmed (ph) things? Dear blank, thanks for the blank. I really love it.

COSTELLO: That's awful.

O'BRIEN: I use it all the time when I blank.

(LAUGHTER)

Seriously!

COSTELLO: That's what people are sending.

O'BRIEN: Kids do that, particularly.

COSTELLO: They're getting all these wonderful wedding gifts and they're just send one mass e-mail, or something like that, which doesn't mean anything.

O'BRIEN: Yes. It's pretty lame.

COSTELLO: So, don't be lazy for goodness sake.

O'BRIEN: Does not mean a thing.

COSTELLO: OK, let's get to the story about the dog.

O'BRIEN: We must!

COSTELLO: We must. You might remember about the dog frozen to the railroad tracks. He was rescued 10 minutes before a train came. His little tail was frozen to the railroad tracks.

They're now calling him Ice Train. Well, the Chippewa Falls, Wisconsin family that owns this dog, well, they're not sure they want him back. They got him as a gift a couple of months ago.

O'BRIEN: What!

COSTELLO: Because they walking the dog, he got a way, and that's how he got frozen to the railroad tracks. They couldn't find him.

O'BRIEN: Right?

COSTELLO: So, they got a dog, he was not well trained.

O'BRIEN: But he was stuck, he couldn't come home. How can Lassie come home when his tail is attached to the tracks.

COSTELLO: Apparently, he has a problem running off. But he's in the kennel now -- I guess, the pound. They've gotten 100 offers to adopt Ice Train.

O'BRIEN: Maybe Ice Train doesn't want to be with this family. Maybe that's the message.

COSTELLO: Maybe so.

O'BRIEN: I'm sure they're some loving people out there who will take care of Ice Train.

COSTELLO: They got 100 offers. So, we'll keep you posted.

O'BRIEN: Yeah, there you go.

COSTELLO: Coming up a new development in the latest David Letterman legal saga. A New Mexico woman says Letterman sent her secret messages to harass her. Secret messages, through his show, to harass her.

O'BRIEN: He'd say, I love you, Oprah, and she thought that was for her.

COSTELLO: Yes, exactly. It's a strange story. We'll have more for you ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Firefighters in Texas and Oklahoma bracing for another day of strong winds after wildfires burned homes in several towns. We'll have a forecast for you.

Judge Samuel Alito's past coming alive this morning. Just hours from now we'll get the first look at more previously secret documents.

And that story we promised you, the dog, rescued during Hurricane Rita, by myself and a producer for CNN; well, it is quite an odyssey. From Louisiana to New York and onward into the heartland, to Nebraska. It's a happy story for the dog, but its bittersweet for the producer.

COSTELLO: I cannot believe the dog's owners finally came forward. O'BRIEN: Yeah, it took them a while to figure the whole thing out. Even though the dog was kind of a celebrated pooch there for a little while. They weren't exactly watching CNN at that time, because they were a little busy with the hurricane.

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