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American Morning

White House Changes; Mental Defense for Moussaoui; Rumsfeld Under Fire

Aired April 18, 2006 - 06:30   ET

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


MILES O'BRIEN, CNN ANCHOR: Still to come on the program, a little girl abducted 13 years ago. She's finally reunited with her father. The meeting didn't go as well as hoped. We'll have their story on this Tuesday edition of AMERICAN MORNING.
Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Top stories this morning. We have some breaking news.

Two young men now in custody in North Carolina believed to be associated with that Duke rape case. What does it mean for the investigation? Well, we'll keep you up to date as it develops this morning.

Former Enron chief Jeffrey Skilling back on the stand for more cross-examination today. Prosecutors charging he knew the company was going under and started dumping hundreds of thousands of shares of stock.

Plus, Pedro Martinez, the ace pitcher for the Mets, is celebrating a major milestone, 200 wins.

BETTY NGUYEN, CNN ANCHOR: All right.

O'BRIEN: He's the seventh current major leaguer to reach that 200. Too bad he's not wearing a Red Sox uniform.

NGUYEN: Oh, Miles. Be happy for him, Miles.

O'BRIEN: I'm sorry. Sorry I got in there. The Mets are off to a 10-2 start, the best in baseball. That won't last.

Anyway, good morning to you. I'm Miles O'Brien.

NGUYEN: And I'm Betty Nguyen, in for Soledad today.

Quite a first day for new White House Chief of Staff Josh Bolten. He's already telling staffers to expect lineup changes in an effort to refresh the administration, and those changes could be coming soon.

CNN White House Suzanne Malveaux has more on why Bolten may be looking for a quick fix.

(BEGIN VIDEOTAPE) SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Two and a half years is a relatively short period of time for President Bush to get anything done, but that's all the time he has left. His own press secretary conceding that fact.

This, of course, comes at a time when White House releases with some Republicans on the Hill has deteriorated. And also, his new poll numbers showing that he has a 36 percent approval rating.

That is why on the first day of the chief of staff, new chief of staff, Josh Bolten, had a closed-door meeting with senior staff, telling them that he wants to make changes sooner as opposed to later, offering that those who want to go should leave and announce soon before he decides to make some of those changes. Bolten says he will use the first seven to 10 days to figure out and evaluate how White House operations are working. Some Republican strategists and White House insiders say he's specifically focusing on White House communications and legislative affairs.

What is clear is that Secretary of Defense Donald Rumsfeld is going nowhere. President Bush reiterating that over the weekend. And his White House aides continue to do the same.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

O'BRIEN: The defense secretary will be going to an important meeting today. He is perhaps trying to do a little bit of spin control himself. He plans to meet with TV military analysts, other opinion makers to make his case that Iraq is on track.

That meeting will happen at the Pentagon. The press office says not an unusual meeting, but the get-together was hastily arranged after a cancellation opened up in Rumsfeld's busy schedule and all the criticism erupted.

Stay tuned to CNN all day for continuing coverage of Rumsfeld under fire.

It must seem odd to some of the families of the victims of 9/11. On the witness stand in the Zacarias Moussaoui trial, a description that his smile was infectious. The jury returns to the courtroom in just about three hours.

Here's CNN's justice correspondent, Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Moussaoui's defense team will continue this morning to hammer the idea that he is mentally ill and that he had an abusive childhood. We heard yesterday from a psychologist who said that Moussaoui is a paranoid schizophrenic who suffers from delusions.

We also heard from his sisters, who explained their childhood with their violent and abusive father who they say deprived the children of food. They also say that Moussaoui was in and out of orphanages until he was six years old. But, they say even through all that, Moussaoui was a happy and loving child who was very friendly.

That was echoed by some friends that Moussaoui knew in high school. They said his smile was infectious.

But both his sisters and his friends say that they saw a radical change in Moussaoui after he moved to London and embraced radical Islam. They said he became more withdrawn, brash, confrontational.

Through all of this, the jurors took very copious notes. We do expect to hear more testimony from mental health experts today, and we also expect to hear a written summary from Richard Reid, the shoe bomber. Now, Moussaoui, if you remember, said that Reid was supposed to be in a fifth plane with him on September 11th and that they were supposed to fly that plane into the White House.

Kelli Arena, CNN, Alexandria, Virginia.

(END VIDEOTAPE)

NGUYEN: Stories "Across America" now.

This, check it out, is all that remains of a rare million-dollar Ferrari Enzo. There it is. Not much.

It's at the center of an embezzlement case involving a former video game executive who is now facing a pileup of charges. Monday, of Bo Stefan Eriksson pleaded not guilty to embezzlement and grand theft charges. He is accused of bringing three very expensive cars into the U.S. without the real owners' knowledge. That includes the totaled Ferrari.

Well, a New York transit union plans to appeal a $2.5 million fine for last December's illegal strike. A state Supreme Court judge imposed the fine and also ruled that Transit Workers Union Local 100 cannot collect dues for 90 days. The three-day strike cost the city about $1 billion.

Hey, they say everything's bigger in Texas, right? Well, including its problems.

Texas's largest cities were hit by rolling power blackouts Monday, and they could experience more today. The unseasonable 90- plus-degree heat led the state's power supply authority to declare an emergency situation and order blackouts.

Well, danger averted down in Deltona, Florida. A brush fire there forced the evacuation of several homes. Check it out.

You can see just how close the homes are to the fire. Firefighters now have the upper hand, though, and people are being allowed back in their homes. Deltona is about 30 miles southwest of Daytona Beach. A separate brushfire in Daytona injured one firefighter. Chad Myers joins us now to talk about the weather.

Chad, they need some rain down in Florida and they need some heat relief in Texas.

CHAD MYERS, CNN METEOROLOGIST: Absolutely. Yes, absolutely need some rain down here, for sure.

(WEATHER REPORT)

MYERS: Back to you guys in New York.

O'BRIEN: Thank you, Chad.

It wasn't exactly a storybook reunion, to say the least. Too many years, too much bad blood complicated the reunion of a father and daughter.

Seventeen-year-old Marilyn Byrd abducted from Maryland by her mother 13 years ago in the midst of a custody dispute. She was found last week in Delaware with the help of some surprisingly accurate pictures that used software to predict what she would look like.

The girl needed two hours of coaxing to come out of her house for yesterday's reunion. Her father, who has waited so long, was clearly disappointed.

(BEGIN VIDEO CLIP)

CARL DODD, REUNITED WITH DAUGHTER: It didn't go as planned. You know, I think there's still a lot of hurt within her heart. But we've got a lot of work to do. I did want to take her back to Maryland with me, but at the same time, I can't be selfish.

(END VIDEO CLIP)

O'BRIEN: Father and daughter met for about an hour. He hopes to talk with her again next week -- Betty.

NGUYEN: Well, Miles, there may be a weapon in the fight against breast cancer in the form of an old drug used to treat osteoporosis. We'll find out more about this coming up.

O'BRIEN: Also, a country ripping apart at the seams amid massive protests. Fears of a full-scale revolution.

NGUYEN: And crews race against time fighting some of Europe's worst flooding in more than a hundred years.

That's ahead on CNN AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Good morning, Boston.

"This, too, shall pass," the words of Defense Secretary Donald Rumsfeld, under fire and on Rush Limbaugh's radio program yesterday, setting the stage for a big meeting today with some friendly retired generals. Mr. Rumsfeld clearly looking for sympathetic audiences these days as he tries to stem calls for his ouster.

Carol Costello live now in the newsroom with more.

Hello, Carol.

CAROL COSTELLO, CNN ANCHOR: Oh, hello, Miles.

And good morning to all of you.

Six generals come out swinging, some of them calling for Donald Rumsfeld's resignation. One day before he's set to appear before some generals and some TV analysts, he goes on a charm offensive.

He appears on "The Rush Limbaugh Show" -- as you know, a very conservative talk show. And it's not exactly a hard-hitting interview or a long one, but Mr. Rumsfeld did address his critics. Here's some of what he had to say.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: This, too, will pass. I think about it, and I must say, there's always two sides to these things. And the sharper the criticism, comes sometimes the sharper the defense comes from people who don't agree with the critics.

(END VIDEO CLIP)

COSTELLO: As to specific criticisms that Rumsfeld is autocratic, inflexible, and stubborn, this is what he had to say to those criticisms. He said, "Well, I just don't know. I can't climb into other people's minds. I was amused that Admiral Vern Clark said, 'Yes, he is tough, and these are tough times. And we need people in the government who are tough-minded and feel a sense of urgency.' So, I suppose beauty is in the eye of the beholder."

Well, you know the Rumsfeld controversy is the talk of the country right now. So we decided to check around on some blogs. And we have two comments pulled from the blogosites, shall we say, this morning.

This is from the liberal blog Think Progress. The blogger says, "The real cause of low troop morale is Rumsfeld's inability to properly coordinate the U.S. forces. Instead of fixing the program, Bush and company bury their heads in the sand again and blame the media for only reporting bad bits of Iraq and claim there is no civil war forthcoming, if not already. Of course, an active general won't step out and speak out against Rummy. He'll be sacked and no retirement."

This is from the conservative blog, The American Thinker. "The Clinton generals seem to be auditioning for the next Democratic administration, but seeing retired general officers pick up the pom- poms and the cheerleading for the Democrats is really over the top. It shows nothing but contempt for military honor and tradition."

And as we've been telling you this morning, Donald Rumsfeld is set to sit down with a group of generals and TV analysts. One of them, our own analyst, Don Shepperd. He's going to be on AMERICAN MORNING later, and it will be interesting to hear his perspective on all of this -- Miles.

O'BRIEN: Yes, it will, Carol. You know, there have been a series of these meetings all throughout the war. This will be a different one, for sure.

Carol Costello, in the newsroom.

Thank you very much.

Stay tuned to CNN all day for continuing coverage of Rumsfeld under fire. We'll keep you posted on how that meeting goes before and after -- Betty.

NGUYEN: An old drug used to treat osteoporosis may have a new use. It could lower the risk of breast cancer. We'll tell you what that could mean for millions of women.

Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: In London, they're going ahead with a plan that could lead to cell phones that work in subways. London underground stations are studying whether to install the transmitters and repeaters. While it's considered a useful safety feature, a lot of concern that the cell phones could be used to detonate bombs.

Suicide bombers attacked three trains and a bus last July, you'll recall. Cell phone timers were used in the Madrid bombings of trains there. But no signal is needed for them to work, necessarily -- Betty.

NGUYEN: Breaking news this morning in the Duke University rape investigation. Two men taken into custody just about two and a half hours ago. Here's some video of that.

The Associated Press quotes a jail official saying the two are members of the school's lacrosse team. They're both due in court later today.

Well, you can expect some changes at the White House. President Bush's new chief of staff is telling top aides he wants to refresh and reenergize the administration.

And today marks the 100th anniversary of the great quake in San Francisco. A wreath-laying ceremony planned for next hour, marking the exact time that quake hit.

O'BRIEN: Around the world this morning, more talks under way in the face of nuclear threats from Iran and a crisis in the Balkans. The Danube River at a 100-year high and rising.

(BEGIN VIDEOTAPE)

CHRIS BURNS, CNN CORRESPONDENT: I'm Chris Burns, along the River Danube. We'll see how towns like this one and so many others along hundreds of miles of this river are fighting to prevent that high water from entering their homes, how tens of thousands of people are at risk, how thousands of people have been evacuated, thousands more have been pilling sandbags, running water pumps, using heavy machinery, whatever they can to stop some of the worst flooding in more than 100 years. And the economic effects can be as bad as the water itself. We see that shipping along one of the most important riverways in Europe is completely shut down.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT: I'm Matthew Chance, reporting from Moscow. High-level officials from the United States and other major powers are convening in the Russian capital to try and decide what action they should take against Iran over its controversial nuclear program.

All are concerned about the possibility of Iran using its civilian nuclear program as a front to build nuclear weapons. But there are big differences still about what to do about it.

(END VIDEOTAPE)

O'BRIEN: For more on these stories and all the other top stories this morning, we invite you to check out CNN.com.

Andy "Minding Your Business."

Good morning, sir.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Good morning, Miles.

NGUYEN: Good morning.

SERWER: Good morning, Betty.

Wal-Mart today the most generous company in the nation when it comes to health care coverage. That is an unassailably true statement. We'll explain coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: A look now at some of the stories we're working on this morning.

Donald Rumsfeld trying to fight back calls for his resignation. A big meeting at the Pentagon.

The new White House chief of staff says he's going to shake things up in the West Wing.

Today is the 100th anniversary of the great quake in San Francisco.

Oil hits a new high, more than $70 a barrel.

And some breaking news this morning. Two arrests in connection with the Duke rape investigation.

All those stories are ahead. But first...

NGUYEN: But first, Andy is here, which means we're going to be talking about Wal-Mart.

Are those smiley faces warranted today?

SERWER: Well, the smiley faces are in the news as well, Betty. And we're going to get to that in one second. Of course, that's their little slogan that they've had for years and years. But, first of all, we want to talk about Wal-Mart and health care coverage, obviously a hot-button issue for this company.

Earlier, I said that this company can be called the most generous company in the United States when it comes to health care coverage. How could I possibly say that with all the controversy surrounding Wal-Mart? Well, because yesterday they announced they're extending health care benefits to 150,000 part-time employees.

O'BRIEN: Just like that, boom?

SERWER: Just like that.

O'BRIEN: OK.

SERWER: They're just turning a little lever. Before, you had to work at Wal-Mart for two years before you got -- part-timers -- for two years before you got any coverage.

NGUYEN: OK.

SERWER: Now they're saying you only have to work for one year. And they're also extending this coverage to families, children in those -- in those families, as well.

Now, interestingly, union reps responded, and they were able to find a dark lining to the silver cloud. They said this is what's so cruel, they're basically expanding health care coverage to workers who can't afford it because their pay is so poor, et cetera.

I think they -- you sort of lose a little credibility here. I think you just need to say it's a nice small step, or not say anything at all.

NGUYEN: It sounds like you can't win for losing, right?

SERWER: I think that's probably right. Now, speaking of the smiley face...

NGUYEN: Yes?

SERWER: ... the company seems to be de-emphasizing Smiley. Of course, the smiley face is called Smiley. You probably knew that. Smiley.

O'BRIEN: Just Smiley.

SERWER: He has been a hallmark of all their advertising for years and years and years, but now they're getting a little more sophisticated and they're going to start to have lifestyle advertisements for people walking around and families looking happy instead of just Smiley. One reason why I think they're de-emphasizing Smiley is because critics had a field day with Smiley over the years.

They'd show him black and blue, they'd show him frowning, they'd show him with dollar signs in his eyes, the critics. He's greedy. So I think they got a little bit tired of people poking fun at Smiley. And so he's kind of getting back-burnered at this point.

NGUYEN: Oh, getting rid of Smiley, huh?

SERWER: Yes. He'd sort of bounce around, always low prices.

NGUYEN: Right. Rolling back.

SERWER: A little kind of old looking, right?

O'BRIEN: Kind of forced joviality at times, maybe. You might say.

NGUYEN: You weren't a fan.

SERWER: Right.

O'BRIEN: No, I'm -- not really.

SERWER: Nothing like you'd ever do here, for instance.

O'BRIEN: No, no, not like us. Absolutely. Thanks, Andy.

SERWER: You're welcome.

NGUYEN: All right. Thanks, Andy.

O'BRIEN: We are approaching the top of the hour. Let's get the forecast in -- Chad.

MYERS: Didn't you like the Zorro one?

SERWER: Yes.

O'BRIEN: Oh, that was a good one.

NGUYEN: Slashing prices.

MYERS: My favorite.

(CROSSTALK)

MYERS: That was my favorite one. That was good.

O'BRIEN: Yes, it had the little, you know, mask on and everything. It was good.

MYERS: Yes. Yes.

SERWER: Politically incorrect, though.

MYERS: I suppose.

SERWER: Yes.

MYERS: Everything is.

(WEATHER REPORT)

MYERS: The next hour of AMERICAN MORNING starts right now.

ALINA CHO, CNN CORRESPONDENT: I'm Alina Cho, in Durham, North Carolina, where there is breaking news in the Duke rape investigation. We have just learned the identities of the two suspects. We will have much more on this story coming up.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: I'm Barbara Starr, at the Pentagon, where Don Rumsfeld goes on the offense against his critics today. That story coming up.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: I'm Ed Henry, at the White House, where the new chief of staff is talking about potentially big changes. That story coming up.

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