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American Morning

Tough Questions Looming for President's Pick to Head CIA; Pentagon May Provide Security Along Mexican Border

Aired May 12, 2006 - 07:30   ET

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


MILES O'BRIEN, CO-HOST: Top stories now. Tough questions looming for the president's pick to head the CIA. Today on Capitol Hill, General Michael Hayden, former head of the National Security Agency. His visit to the Hill coming the day after reports the NSA is conducting a huge drag search of the phone and e-mail records of tens of millions of Americans.
The Pentagon may provide security along the Mexican Border. Currently the military has a limited role there. No details yet but reports National Guard troops may be involved. Lawmakers from border states are asking for the help.

When the stock market opens this morning, see who's buying and selling. The Dow industrials plunged more than 140 points, that's 140, yesterday. Everybody worried about inflation.

Good morning. I'm Miles O'Brien.

SOLEDAD O'BRIEN, CO-HOST: And I'm Soledad O'Brien.

Kind of an ugly day on Wall Street yesterday for sure.

M. O'BRIEN: Predictions are not so good today.

S. O'BRIEN: Well let's get to another took this morning. General Michael Hayden's nomination.

Elaine Quijano at the White House for us this morning.

Hey, Elaine, good morning.

What concerns about the NSA and eavesdropping and wiretapping? What kind of concern do they have about making the confirmation hearing process uglier?

QUIJANO: Good morning to you. Interesting to note that the White House saying moving full steam ahead with the nomination. But interesting to see yesterday, President Bush's certainly wasted no time getting in front of the cameras. And trying to quell the growing political storm over the NSA surveillance program.

There have been renewed questions in the wake of that "USA Today" report saying the government is collecting the phone records of tens of millions of Americans.

The president came out yesterday and said the government does not listen to domestic phone calls without court approval and confirming or denying details. The president again defended the NSA surveillance program.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The privacy of ordinary Americans is fiercely protected in all of our activities. We're not mining or trolling through the personal lives of millions of innocent Americans.

(END VIDEO CLIP)

QUIJANO: Democrats, of course, jumped on the news and again raised questions about the legality of the surveillance program.

Even Republican Senator Arlen Specter who heads up the Senate Judiciary Committee says he wants to see phone company executives testify about the involvement in it.

All of the developments, of course, Soledad, happening a week ahead of confirmation hearings set for General Hayden.

S. O'BRIEN: Interesting timing there. Let me ask you about the president's schedule today. Meeting with former and current secretaries of state and defense too. What are they talking about?

QUIJANO: A senior administration official says this is a follow on to a meeting in January. There was a similar meeting back on January 5th. And the goal really to discuss ideas on Iraq and the larger war on terror.

Now, also, they want to try to do this and show they're doing in a bipartisan way. Iraq, as you know, the primary issue continuing to weigh down President Bush's approval ratings.

For months now, the White House has been trying to turn around public opinion on this issue and this is an opportunity for the president to show he is trying to reach out and look for the way forward in Iraq.

S. O'BRIEN: Elaine Quijano for us this morning at this White House.

Elaine, thanks.

You want to stay with CNN day and night for the most reliable news about your security.

M. O'BRIEN: I think we're going to gas prices now.

S. O'BRIEN: Why not? Do it.

M. O'BRIEN: The latest gas gauge for you. Read it and weep. Current average $2.88 for unleaded regular. A month ago, it was $2.70. A year ago...

S. O'BRIEN: Not in New York.

M. O'BRIEN: Well, talking averages here.

S. O'BRIEN: I know.

M. O'BRIEN: Nothing average about New York, that's for sure.

Those rising gas prices led President Bush to stop deposits to the strategic petroleum reserve at least for the summer. The idea is to ease demand.

That reserve was established in 1970s on the heels of the Arab oil embargo to ensure a supply of oil on hand for national security purposes.

What are the implications of the President's decision?

CNN's Sean Callebs, live from New Orleans this morning. Right near where the reserve is.

Good morning, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Miles. We visited one of the four reserves. And another reason the President stopped the deposit, the reserves hold 700 million barrels of oil and right now, 688.

With gas prices and oil prices more than $70 a barrel of crude, doesn't make sense to top off those reserves right now.

Also for consumers looking to tap into the petroleum reserve, hoping for a break at the pumps, experts say, think again.

(BEGIN VIDEOTAPE)

CALLEBS (off camera): Miles of twisted pipe. A lot of meters and gauges. But absolutely nothing that would indicate this is the first line of defense in the event of a crude oil cries. This happens to be one of the strategic petroleum reserves.

MARSHALL JACKSON, SITE MANAGER, STRATEGIC RESERVE: This is actually a -- our well head. The cavern below ground and that's where the oil is stored.

CALLEBS: The oil is there for an emergency.

For example, OPEC nations cutting off exports. Experts say the high gas prices don't constitute a crisis. There is no shortage of crude oil.

GARY ROSS, DEO, PIRA ENGERY GROUP: We couldn't solve a gasoline problem. It is an insurance policy protecting us against an interruption of supply and a cushion to rely on in case of emergency.

CALLEBS: The West Hackberry Reserve and three others are located along the Gulf Coast over natural salt domes. About 2,000 feet down, caverns carved out of salt and Hackberry contains 200 million barrels of oil.

(on camera): In the event of a crisis, this pipeline is how crude would be rushed to the U.S. market. This site is one of four strategic petroleum reserves in the United States.

All told, they contain about 700 nillion barrels of oil. It may sound like a lot. Actually, it's enough to quench the U.S. crude consumption for a little more than a month.

S. O'BRIEN: It's not a general savior for our oil dependency. Often people think it's a -- could bring prices down and a Dramatic effect on prices. And I think it wouldn't.

CALLEBS: Ross says the reserve still fills a vital role as a safety net. A net that could get bigger.

The government is considering boosting the amount of crude to 1 billion barrels. When the reserve established in the mid- 70s in the Arab oil embargo, the U.S. imported a third of its oil. Today, it's nearly twice that amount.

(on camera): And it's interesting as well. The experts say back in the mid-'70s they started the SPR in case of a blackmail as they termed it. Another nation trying to keep oil from coming in here.

(END VIDEOTAPE)

CALLEBS: Over the years, it changed with the political instability and many of the nations now saying they look at it like a tension wire. If there are problems throughout the world, they see the pressures on this reserve going up and up and up. -- Miles?

M. O'BRIEN: Sean Callebs in New Orleans for us this morning. Thank you very much -- Soledad?

S. O'BRIEN: Possible change to textbooks in California's public schools.

State lawmakers in California approved a bill requiring the inclusion of contributions from gays and lesbians. Controversial as you can imagine.

Betty Nguyen has details from CNN Center in Atlanta.

Hey, Betty. Good morning.

BETTY NGUYEN, CNN ANCHOR: Good morning. Senate bill 1737 the first of its kind nationwide. Social science courses with an age appropriate study highlighting societal contributions of gay, lesbian, bisexual and trans gendered people and focus on areas of economic, political and social development.

Now, the bill's sponsor California's Senator Cool says the measure provides students with positive role models without forcing a life style on any student. She says even though we passed an anti-harassment bill seven years ago, it is still pretty obvious there's a hostile environment for kids gay or lesbian or even thought to be gay or lesbian, part of that stems from the fact that nobody reads about any positive examples.

Now, some conservative groups are already lobbying the governor to veto the bill. Opponents say the California legislator has no right to mandate what should be taught and should be up to individual school districts.

Senator Bill Morrow said, quote -- She says no reason to point out historical figures sexual orientation when the contribution has nothing to do with the sexual proclivities.

This bill was supported by a vote has to go to the assembly for a vote. So far, the governor has taken no position on it.

Now, if passed, though, this textbook bill could have national implications. California often sets trends in the textbook market and many publishers put out a specific edition for the state that others can also use. -- Soledad?

S. O'BRIEN: So if it does pass, when would the information actually get into textbooks? What generation of students would sort read the text books?

NGUYEN: If passed, textbooks meeting The bill's requirement brings The information into California classrooms in 2012 and doesn't say exactly which age group exactly which grade level they would start putting the information into the textbooks.

S. O'BRIEN: Certainly is interesting debate.

NGUYEN: Isn't it? It's a talker.

S. O'BRIEN: All right. Betty for this us this morning, Thanks. Appreciate the update.

M. O'BRIEN: Let's check the weather once Again. Chad Myers, hello.

CHAD MYERS, CNN METEOROLOGIST: Hello, Miles.

(WEATHER REPORT)

MYERS. O'BRIEN: -- Soledad?

S. O'BRIEN: All right. Chad, thanks very much.

Andy Serwer's "Minding Your Business." What is as you a looking at?

S. O'BRIEN: High gas prices got you down? A vehicle to get 90 miles to the Gallon.

S. O'BRIEN: Beat that.

S. O'BRIEN: There's no catch.

M. O'BRIEN: In your pocket, right?

S. O'BRIEN: Tell you all about it.

Which telecom DEO refused the turn over phone records to the federal government? We'll tell you about that coming up next.

(COMMERCIAL BREAK)

S. O'BRIEN: If you're booking airline Flight farce trip this summer, you can expect to feel like a Sardine. The flight attendants want give you slack on the carry-ons so you and your fellow sardines face a greater risk of losing the bags forced to check.

Last year, 30 million bags and their owners went separate ways. At least for a while.

But as CNN's Richard Quest reports, there may be a way to keep an electronic eye on your Stuff.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN CORRESPONDENT (voice over): Hong Kong International airport. Gateway to Asia. And home to a technological Revolution. For the 14 million passengers a Year who check in at HKIA, voted the world's best airport in 2005 Lost and bags are a thing of the Past.

Because on each baggage tag, there's a microchip. It has all the details, the Airport needs to know, to get your luggage safely from a to b. It's called radio frequency Identification tacking. RFID to those in the business. Faze one of the tagging systems At HKIA cost $6.5 million and Set a precedent for testing and implementation in other airports Worldwide.

YIU FAI WONG, HONG KONG INTERNATIONAL AIRPORT: This is a typical label what we call. And actually the chip is in the Middle. This is where the intelligence is.

QUEST: But what's so Different? Between that and bar coding?

ANATHONY CONCIL, INTERNATIONAL AIR TRANSPORT ASSNGUYEN: If you have a misplaced Baggage today, someone has to physically stand next to it or a Bag has to pass in front of a Reader before we know where the Bag is. With RFID is the bag says I'm here. And then we can go out and find it much more quickly.

QUEST: RFID offers big Benefits for car yours such as Scanning and much higher reading Okay is ra sy. The companies behind the new Technology stress how easily it Can be integrated within the Existing baggage structure.

ELIE SIMON, CEO, TAGSYS. O'BRIEN: Beauty of the system is that nothing has to be changed in Order to introduce these Processes in the airports. It is just we simply add a Little bit of electronics in on the luggage tag and put the Reading system station all the Way through.

QUEST: Little tags, lots of electronics. They don't come cheap. And that's slowing down the Implementation. The tag costs around 10 cents. Then there's a capital Investment. Scanners on each carousel. Check in desks and those transit Points, they'll all big capital Items at a time when efficiency And cost cutting are the buzz Words.

Richard quest, CNN, London.

(END VIDEOTAPE)

M. O'BRIEN: Who was the photographer who volunteered to be checked through there for the picture?

S. O'BRIEN: Cool, huh? He ends with the key thing which is it's all really expensive. Don't expect it any time soon.

M. O'BRIEN: Nice.

S. O'BRIEN: Something else really Expensive --

M. O'BRIEN: Gasoline?

S. O'BRIEN: Yes.

M. O'BRIEN: I have a solution.

S. O'BRIEN: You got it.

M. O'BRIEN: I have a solution.

S. O'BRIEN: You have the solution.

M. O'BRIEN: While we start --

S. O'BRIEN: All ears pal.

M. O'BRIEN: Listen. People are changing their habits the way they work, the way they live and get to work because of High gas prices so it might not Surprise you that there is a Scooter boom going down in the United States. More and more Americans are buying these babies. And they're pretty cool. We have some vespas going on. You know what that means in Italian?

S. O'BRIEN: Wasp.

M. O'BRIEN: Yes. And 12,000 scooters sold in 1997. 113,000 sold last year. Here's why. You put in 1/2 gallons, $5 Opposed to $75 plus for a SUV. 90 miles to the gallon. Okay?

S. O'BRIEN: Sweet.

M. O'BRIEN: And you feel like you're on Roman holiday. S. O'BRIEN: My dad got a moped. Just sitting there thinking, Maybe I need a vespa.

S. O'BRIEN: You would be cool on one.

S. O'BRIEN: Is it safe?

M. O'BRIEN: Very trendy.

S. O'BRIEN: My concern. You bumped by a little teeny car and that's it.

M. O'BRIEN: Don't hit anybody.

S. O'BRIEN: Well...

M. O'BRIEN: I know.

S. O'BRIEN: That would be the advice. Avoid the collisions.

M. O'BRIEN: Yes.

Another story to tell you about Here quickly is you know we've Been telling you all morning Long about this issue where the NSA has been requesting and Received phone records of Millions of Americans? Well, it turns out that one Telephone company, one telecom Did not turn over their records

And that was because Joe Nachia Declined to turn over records After 9/11. Saying that he didn't think it was the right thing to do. Ironic because he is in a lot of Trouble. He's been hit with 42 counts of Insider trading. At, Verizon and bell south did turn over their records and they ended negotiations in 2004.

S. O'BRIEN: Maybe because he is the focus of a government investigation.

M. O'BRIEN: Too busy with this? Can't be bothered with that?

S. O'BRIEN: Yes.

M. O'BRIEN: I don't like the government.

S. O'BRIEN: May be helping out. Not feeling so good about that. Interesting.

Andy thanks.

S. O'BRIEN: Thank you.

S. O'BRIEN: With those gas prices sky High and plane tickets more Expensive, how about a cruise?

Is a cruise a cheaper Alternative? We have got some -- Yes. Where else do you get to the do The Congo line?

M. O'BRIEN: A MasterCard moment right there. Priceless.

S. O'BRIEN: We have tips on cruise Vacations as our summer vacation Series continues.

Plus, a story of a heart warming bond between some third Graders and their pen pal. Happens to be a soldier. We're going to tell you about the surprise these kids are about to get.

That's coming up next. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: For American soldiers fighting in Iraq, the little Things, of course, can make all the difference. E-mail or phone call, care Packages, letters. So when one soldier became pen Pals with a class of third Graders in New York, he was Grateful and he wanted to give back a little. What happened next is all very interesting.

Alina Cho is here.

ALINA CHO, CNN CORRESPONDENT: Just unbelievable. Most of the children -- so Adorable. Most of the children 9 years old and old enough to know that Soldiers serving in Iraq can get Lonely. They know because over the last Six months or so, writing Letters to Sergeant Travis Collier and he is writing each One back individually. That would have been enough but He decided to do one better and the kids are not in on the Secret.

TEACHER: Very, very special day.

(BEGIN VIDEOTAPE)

CHO: These third graders from Saint Patrick's school in Smithtown, New York, get the Surprise of their lives. But for now, they think we're Here to talk to them their about their soldier pen pal. We asked them to read the Letters received from Sergeant Travis Collier.

ERIN MCCORMICK, STUDENT: I love to go to the beach. And I love to go to the beach, too. So we have something in common.

CHO: Collier written to each of the 26 students individually and we quickly Learned he's told all of them about his dog.

TEACHER: What is the name of the dog? Everybody?

CHILDREN: Rufus.

CHO: none of them have any idea what's about to happen.

(on camera): What is the best part of being a Pen pal with somebody like that?

CHILD: In contact with them all Times. You can always talk to them if you want. But it would take sometime because Iraq is not really close To New York. CHO: In Iraq, Sergeant Collier is an engineer, building Bridges. The 22-year-old has been there Since December. He is now on two-week leave. Enough time to travel to New York to surprise the kids behind all of the letters.

TECHER: Oh my gosh.

SERGEANT COLLIER: Hi, everybody. Everybody remember me?

TEACHER: Came all the way from Iraq.

CHO: the children can't believe their eyes?

CHILD: I was about to cry. He came all the way from Iraq Just to see us.

CHO: Justin Thomas like It is uniform.

CHILD: It says that he is a kind man He is generous and he's fighting for his country and very nice.

CHO: holly has a special Connection. She was the first student to send Collier a letter. She cried when she saw him.

CHO: Hi. Why does it make you feel that Way?

HOLLY: I was so happy.

COLLIER: Yes.

CHO: sergeant Collier says it's his way of giving back.

COLLIER: Everybody has a pen pal at One time. You never really get to meet them. I thought it would be a special Moment to write a soldier and Know I'm a real person.

CHO: there's a pep rally Gifts, a special cheer.

CHILDREN: Travis! Travis.

CHO: the kids have other Questions.

CHILD: I want to know what your Favorite color is.

CHILD: I just want to know, like, what is his favorite color.

CHO: sergeant Collier Calls the letters a stress Reliever.

COLLIER: This is my day, the favorite colors, pets, and hobbies. And that's similar to talk about.

CHO: Does it help the Time pass?

COLLIER: It does.

(END VIDEOTAPE) CHO: For the record, Sergeant Collier says the favorite color is red. Soledad, good job today. He traveled with his wife and Mother and when I asked his mom How she felt about sharing this Limited time with her son with 26 students she doesn't know, She said this is family now and She couldn't be more proud of Her son. He returns to Iraq next week for another six months and you can bet this pen pal thing will probably continue.

S. O'BRIEN: Great guy. Those kids, I thought some of them were going to pass out. They were so excited.

CHO: Some said they felt like they were going to faint.

S. O'BRIEN: How did he get connected to the classroom?

CHO: It is an interesting story. Holly, the student that wrote the first letter, her mother actually works with Sergeant Collier's mother. Across the country from each Other. They met briefly and she talked about how her son was Iraq, Lonely.

S. O'BRIEN: Her daughter could do the pen Pal and went to the classroom.

CHO: Brought the letter to the Class and everyone wanted to write.

S. O'BRIEN: A great story. The kids are so cute.

CHO: They are.

S. O'BRIEN: All right. Alina thanks. A look at

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