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American Morning

Iraq Decisions Reviewed; Immigration Battle; Holiday Weekend Travel

Aired May 26, 2006 - 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: Good morning to you. I'm Miles O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien.

Here's a look at what's happening this morning, Friday, May 26.

British Prime Minister Tony Blair will push for a revitalized United Nations in a speech at Georgetown University later this morning. Blair and President Bush defended their decision to go to war in a prime time news conference last night.

M. O'BRIEN: The battle is now joined in the legislative fight over immigration. The Senate passed its version of the bill Thursday. It would create a path toward citizenship for illegal immigrants. It stands in stark contrast to the House bill passed in December, which would force mass deportations of illegals.

Mexico's president is praising the Senate bill as a historic step. Vicente Fox wrapping up his four-day trip to the U.S. today with a stop in L.A. where he'll meet the city's mayor.

S. O'BRIEN: Today, the full Senate is expected to confirm General Michael Hayden as the new director of the CIA. He will be the first military officer in 25 years to run the CIA. This is current Director Porter Goss' last day on the job.

And there are rumblings this morning that Treasury Secretary John Snow is about to resign. President Bush, though, said last night that Secretary Snow hasn't talked to him about stepping down. Snow has been on the job for three years.

M. O'BRIEN: Amtrak back on track this morning. A huge power outage stopped the trains in their tracks during the morning rush yesterday. Amtrak's lack of juice comes as Congress prepares to pull the plug on a third of its funding.

Let's get a check of the forecast now with the holiday weekend ahead. Chad Myers not there. Reynolds Wolf is there.

Hello.

He's already having his holiday.

Hello, -- Reynolds.

REYNOLDS WOLF, CNN METEOROLOGIST: Good morning. Good morning.

M. O'BRIEN: Good morning.

WOLF: Yes, we're covering all the bases this morning, getting people ready for the big holiday weekend that's coming up.

(WEATHER REPORT)

Now, Soledad, coming up, we're going to talk more about the holiday weekend, what you can expect across the nation coast to coast. That's just moments away.

S. O'BRIEN: Good, I can't wait to get all the details.

WOLF: You bet you.

S. O'BRIEN: Because I think it's going to be nice here.

WOLF: Should be OK. Should be just fine.

S. O'BRIEN: That's what I like. Fine, OK?

WOLF: You bet you.

S. O'BRIEN: I'm looking for great and fabulous.

WOLF: OK, we'll give you great. We'll give you the very best we can.

S. O'BRIEN: Thank you. I appreciate that, -- Reynolds.

WOLF: No problem.

S. O'BRIEN: Thanks.

President Bush and British Prime Minister Tony Blair say now is the time to get behind the new Iraqi government, but they did not offer a timetable for withdrawing troops. In a news conference last night, both leaders admitted to making mistakes in Iraq.

President Bush regrets telling insurgents to -- quote -- "Bring it on." He says that was misinterpreted in some parts of the world. And Prime Minister Tony Blair admits it was a mistake to cut Saddam Hussein's Baath Party leaders out of a post-war role in Iraq.

The Iraqi war has hurt both men in the polls. Their joint news conference was seen after midnight in Britain. And now with the kind of perspective you'll see only on CNN, let's take you live to London.

CNN's European political editor Robin Oakley is there for us.

Robin, good morning. How is the news conference...

ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR: Good morning, -- Soledad.

S. O'BRIEN: How is the news conference being received there?

OAKLEY: Well, I think people have felt it was time for Tony Blair, and indeed for President George Bush, to show a little bit of humility. They've probably done themselves some good by admitting to those mistakes in Iraq, by admitting they never found the weapons of mass destruction that they used to justify the war.

But both of them suffering, as you said, so badly in the opinion polls. George Bush down from 87 percent approval rating to the low 30s, Tony Blair down from the 60s to the 20s.

What they needed was that timetable for the withdrawal of troops. Instead, all they've had to offer is a commitment to the new government in Iraq with Tony Blair saying they've got to stay there to fight the people opposing the new democracy.

(BEGIN VIDEO CLIP)

TONY BLAIR, BRITISH PRIME MINISTER: I'm more than ever convinced that what is important for them in Iraq is to know that we will stand firm with them in defeating these forces of reaction.

(END VIDEO CLIP)

OAKLEY: He's still going to have some trouble selling to the British electorate, indeed to some of the Labor lawmakers in his own party, the idea of the necessity for British troops to stay on and on for that purpose in Iraq -- Soledad.

S. O'BRIEN: There are people who have been calling for Tony Blair to step down. And if that were the case, he might likely be succeeded by the Chief Finance Minister Gordon Brown. Do you -- what would the relationship between Brown, potentially, and President Bush be like?

OAKLEY: It wouldn't be anything like as good as the relationship between Tony Blair and George Bush. They've really hit it off in a personal sense. Both have a kind of messianic religious fervor almost to their international policies.

But Gordon Brown is a strong Atlanticis (ph). He takes all his holidays on Cape Cod. He probably knows more American politicians than just about anybody else in the British House of Commons through his IMF contacts and so on. What he wouldn't have is that personal friendship with George Bush. He's not a great schmoozer, Gordon Brown.

S. O'BRIEN: Robin Oakley for us this morning.

Robin, thank you very much for some perspective the day after, appreciate it -- Miles.

M. O'BRIEN: So now that the U.S. Senate has weighed in, what is next for the effort to reform U.S. immigration laws? The short answer, a big fight. Somehow the Senate and the House must find common ground between two very different visions on how to handle the problem of illegal immigrants. They call the negotiations a conference committee, the old smoke-filled room. This one may have some smoke and fire as well.

CNN's Sumi Das live now in Washington with more.

Good morning, -- Sumi.

SUMI DAS, CNN CORRESPONDENT: Good morning, Miles.

Well, amidst protests and demonstrations, senators debated and compromised, but their work on the immigration reform bill is far from over. They now face the daunting task of agreeing upon a final version with the House of Representatives.

(BEGIN VIDEOTAPE)

SUMI DAS, CNN CORRESPONDENT (voice-over): After months of debate, the Senate passed a bill overhauling immigration laws.

UNIDENTIFIED MALE: The ayes are 62. The nays are 36. The bill, as amended, is agreed to.

DAS: But consensus between the Senate and the House poses a tougher hurdle.

SEN. JOHN MCCAIN (R), ARIZONA: To our colleagues on the other side of the Capitol, our effort and our dedication and our commitment to you is we will sit down and negotiate in good faith.

DAS: Senators voted to allow those here illegally at least two years to enter a temporary worker program. Those in the U.S. more than five years could eventually pursue citizenship.

UNIDENTIFIED MALE: This bill expressed the confidence and the optimism of the American people, confidence that we can deal with our borders, confidence that we can ensure that everybody who lives within those borders has the right to a life that is full of opportunity.

DAS: The House passed a bill last December beefing up border enforcement but with nothing about legalizing those here illegally.

UNIDENTIFIED MALE: There are big differences between the House and the Senate bill. We have strong security, strong border patrol, but we have the guest worker program, which has been endorsed by the speaker. And now the time has come for very active participation by the president.

(END VIDEOTAPE)

DAS: President Bush has said he looks forward to working with both the House and the Senate to produce a bill he can sign into law -- Miles.

M. O'BRIEN: All right, thank you very much, Sumi Das.

In just a few moments, Carol Costello looks at how the Senate bill might help some immigrants become Americans.

Also happening in America this morning, the Enron verdicts are in and the jury took two prisoners. Enron founder Kenneth Lay and former CEO Jeffrey Skilling guilty on nearly all counts of conspiracy and fraud. Sentencing September 11. If the judge throws the book, they'll spend the rest of their lives in jail.

Cleanup this morning in Indiana, heavy thunderstorms, at least one tornado, sweeping through that part of the world yesterday. Hail, lots of damage to roofs, downed trees. No injuries, though.

Still in Indiana, not weather-related, but a floor collapsed at a storefront church in Evansville. About 15 people fell about 10 feet when the floor at the Mt. Calvary Baptist Church suddenly gave way. Apparently some beams in the 100-year-old building suddenly snapped. Lots of injuries, none of them serious, though.

In Missouri, a couple accused in the horrific videotape rape and murder are behind bars this morning. Richard Davis and Dena Riley turned themselves into the FBI. They had a 5-year-old girl with them. They now face kidnapping in addition to murder and rape charges. Police say they rolled videotape as they bound Marsha Spicer and -- with duct tape and then raped and killed her.

What us worry about high gas prices, we're Texans. The speed limit in the Lone -- is that the speed limit story? That looks like a car chase there. The speed limit in the Lone Star State now goes from 75 miles an hour to 80. I guess it's just a fast driver. It's the fastest posted speed limit in the country. Just proving there are speeders there. The change is not for the entire state, just some rural highways.

And here's a good one for you.

That is a chase, I think. I have no idea what that video is all about, folks. We're sorry, but you know not everybody in Texas being chased by cops.

Police in central Florida, this is a wild story. Look at the dashboard camera, which just blew by you there. They came out to investigate. They got calls of a very large truck driven by a very small boy. Turns out it was a 10-year-old boy at the wheel. He ended up smashing into a police vehicle, giving a concussion to the officer. The 10-year-old boy is -- there you go, look at this, that's 10-year- old -- how did he reach the pedals. And in any case, he is fine. Says he did it on a dare and he has some explaining to do, I'd say.

S. O'BRIEN: Yes. Wow!

M. O'BRIEN: Yes.

S. O'BRIEN: Crazy story.

M. O'BRIEN: All right.

S. O'BRIEN: Still to come this morning, we're going to talk about this TSA story. Have you heard this? Fourteen hundred, approximately, uniforms missing or stolen from the TSA. These are the folks that check you as you come through the security lines at the airport. This morning, we'll assess the security risks of passengers now in the wake of this report.

M. O'BRIEN: And then you'll meet a Mexican couple who beat the odds. They're finally U.S. citizens, but it wasn't easy. We'll show you how hard it was for them to gain legal status.

S. O'BRIEN: And if you're hitting the road this holiday weekend, gas won't be your only concern. We'll tell you what else is costing you much more.

Plus, Carrie Lee is with us with some business headlines.

Good morning.

CARRIE LEE, CNN CORRESPONDENT: After a four-and-a-half-year government investigation, Ken Lay, Jeff Skilling found guilty in the Enron trial. So what happens next, sentencing, jail time? We'll have it all coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Happening this morning, still no sign of Jimmy Hoffa's body. The FBI dug for seven hours yesterday searching for his remains. An FBI spokeswoman calls it "much ado about nothing."

General Michael Hayden is expected to win Senate confirmation today as the new CIA chief. He'll be the first military officer to run the spy agency in 25 years.

And there's a battle looming in Congress over immigration reform. House conservatives are denouncing the recently passed Senate bill as amnesty for undocumented immigrants. They're expected to hold a news conference to talk about this issue later today.

M. O'BRIEN: The fight over illegal immigration is about legislation and compromise and debate, and hard as that all may be, but it really is also about people, people who have a dream, a dream they want to hold on to.

Carol Costello live now from the newsroom with more on that.

Hello, -- Carol.

CAROL COSTELLO, CNN CORRESPONDENT: Hello, Miles, and good morning to all of you.

You know this story is bound to make some of you very angry. It plays into the whole amnesty debate and whether illegal immigrants should be granted U.S. citizenship. Well it's happening now, even without a new immigration law.

(BEGIN VIDEOTAPE) CAROL COSTELLO, CNN CORRESPONDENT (voice-over): In 1987, Angel (ph) and Ophelia Chimbo (ph) walked through the hot Mexican desert and entered the United States illegally. Nineteen years later, they have finally become American citizens. The Chimbos say they would have been forced to wait even longer had they abided by the law.

JULIE DINNERSTEIN, NEW YORK IMMIGRATION COALITION: In terms of your average person from Mexico who wants to come to the United States, there are very, very few visas.

COSTELLO: The Chimbos were in the United States illegally for 10 years before they were caught. By then, they had American children and American jobs. So an immigration judge...

UNIDENTIFIED FEMALE: Angel Chimbo, Ophelia Vala (ph), come to me.

COSTELLO: ... put them on a path to citizenship, despite the fact they had entered the United States illegally. And that's exactly what the proposed immigration reform bill would do.

If they had applied to enter legally, they likely would have found few visas available for unskilled workers, especially considering the large numbers of applicants from countries like Mexico.

ALFONSO AGUILAR, CHIEF OF CITIZENSHIP, HOMELAND SEC.: The waits for country's like Mexico and say the Philippines can be many, many years. Can be even over 8 years, over 10 years because there is such great demand.

COSTELLO: In this Brooklyn courtroom where 40,000 new Americans are naturalized each year, the Chimbos were two of the four Mexicans being naturalized Thursday. The other Mexicans were Oscar Kanulas (ph), who married an American, and Tania Rodriguez whose parents are U.S. citizens.

TANIA RODRIGUEZ, NEW U.S. CITIZEN: It's not an open door. We don't have an open invitation to come and to enter this country to just come and work.

COSTELLO: But immediate family of U.S. citizens and workers with extraordinary skills are given preference, no matter what country they come from. All the Chimbos had going for them was a sympathetic judge.

OPHELIA CHIMBO, NEW U.S. CITIZEN: I know come illegally is maybe right now is no citizens, never.

COSTELLO: Without that kind of help, Ophelia says she believes she would still be waiting in Mexico. But instead, by entering the United States illegally, they effectively jumped to the front of the line.

(END VIDEOTAPE) And there's that phrase jumped to the front of the line. As you know, that's what the House of Representatives does not want. It remains to be seen whether some kind of compromise can be reached on this issue. Of course the bigger question, if there is no amnesty- type compromise, what do you do with the 11 million people already here illegally? A big question and no one has a perfect answer just yet -- Miles.

M. O'BRIEN: I don't think they're just going leave if you politely ask them to leave.

COSTELLO: Right, you're going to have to round them up.

M. O'BRIEN: Yes.

COSTELLO: And how do you do that with 11 million people?

M. O'BRIEN: Yes, I'd say that's a big job.

Carol Costello in the newsroom, thank you very much.

Let's get a check of the forecast. Reynolds Wolf is in for Chad Myers today.

Hello, -- Reynolds.

WOLF: Hey, Miles.

(WEATHER REPORT)

Back to you.

S. O'BRIEN: Well that's good, it's early yet.

WOLF: You bet you.

S. O'BRIEN: All right, Reynolds, thanks.

WOLF: No problem.

S. O'BRIEN: Still to come this morning, it's getaway day for millions of holiday travelers. We're going to be live on the New Jersey Turnpike with a look at how high gas prices are affecting the holiday rush.

Stay with us, you're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Ken Lay and Jeff Skilling sounded positively surprised, Carrie Lee, at their guilty verdicts in the Enron...

M. O'BRIEN: Denial is a powerful thing.

S. O'BRIEN: Yes.

M. O'BRIEN: That's all I can say.

S. O'BRIEN: Yes, I guess it is.

LEE: That was their public statement, anyway. Who knows? I don't think a lot of people watching this trial for the past couple of years were surprised about this at all.

Nearly five years after Enron, the failed energy giant, collapsed, six days of deliberations, four months of trial, Jeff Skilling and Ken Lay found guilty. Skilling convicted on 19 counts. He faces a maximum 185 years in prison. Lay convicted on six counts, as well as four separate bank fraud counts, and he faces a maximum 45 years in jail. Also, as I said, guilty on all four counts in that separate bank fraud trial. Sentencing for both men set for September 11. They could possibly appeal, but that is the latest on Enron. So the big trial at this point over.

M. O'BRIEN: I would think an appeal is almost a given, don't you?

LEE: Yes.

M. O'BRIEN: Yes.

LEE: And the chance of success probably pretty small. Now one thing they could do, the judge's instruction to jurors that they could be found guilty even if they didn't know about the fraud but they still sort of deliberately stayed ignorant of the facts. Well that's one thing that the judge instructed the jury on. So that's one way to maybe go in an appeal, but still, probably an uphill battle on that.

M. O'BRIEN: A little chink, otherwise a pretty good case, I think?

LEE: Yes.

M. O'BRIEN: Yes.

LEE: Yes, so that's the latest there.

General Motors reportedly has had 20,000 of its workers accept buyout offers. This, a month before the June 23 deadline. So the company looks like it's on a pretty nice track to reach its goal of 30,000 hourly jobs being cut. They've hired some temporary workers to offset those taking the buyouts. Temp workers, of course, cheaper than their regular workers. General Motors labor hourly costs, with benefits, about $81 an hour versus $35 from Toyota. That from "The Wall Street Journal."

And looks like Wall Street is liking this news. GM shares up about 14 percent in the last few days, last two days. One thing helping the Dow gain 94 points yesterday after a string of losses we've seen recently. This morning, guys, looking like a pretty flat open for this Friday morning on Wall Street.

S. O'BRIEN: All right. All right, Carrie, thanks. LEE: Sure.

M. O'BRIEN: Thank you, -- Carrie.

LEE: OK.

M. O'BRIEN: Have a good holiday weekend.

LEE: You, too. All right, see you next week.

M. O'BRIEN: Let's get the gas gauge going here. The national average now, what do you think? Anybody have a guess? Well...

S. O'BRIEN: Almost $3 would be my guess. Am I right?

M. O'BRIEN: You are way out on a limb there, girl. Two eighty- six for unleaded regular. A month ago, $2.92. And a year ago, $2.11. We need to somehow incorporate a contest into this, you know, predictions or something.

Memorial Day weekend kicking off the summer for many. This is a getaway day. As you well know, millions of people will be hitting the roads.

CNN's Allan Chernoff is along the New Jersey Turnpike in Secaucus.

Allan, I read that it took only 23 months to build the New Jersey Turnpike, did you know that, in the '50s? Man, they move quickly. And it takes...

ALLAN CHERNOFF, CNN CORRESPONDENT: I couldn't tell you, but it's quite a road. Certainly would be quite the accomplishment...

M. O'BRIEN: I think it'll...

CHERNOFF: ... people of course using the road. But...

M. O'BRIEN: I think it'll take about 23 months to get up and down it today.

CHERNOFF: That may be the case a little later on. Right now, it's not too busy, because I can tell you, certainly for myself, there is no way I'd have my wife and kids packed and in the car at this hour. I think it's safe to say that for most of the vehicles right now.

But as you say, later today, certainly the roads will be packed. And AAA in fact is estimating that this weekend 31 million Americans will be driving at least 50 miles from their home. However, those vacations may be shorter than they were last year because of gas prices.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): Fill-ups are painful for Ingrid Ciaston who drives one of the biggest SUVs on the road.

INGRID CIASTON, TRAVELER: Sixty-three dollars and one cent.

CHERNOFF (on camera): Wow!

CIASTON: That's a lot, yes.

CHERNOFF (voice-over): Enough to squeeze her family's Memorial Day weekend plans.

In years past, the Ciastons have driven both their GMC Yukon and Dodge Ram pickup to their summer home on the New Jersey shore, but not this year. Walt Ciaston, who sells insurance part-time, says only one of the gas-guzzlers will be hitting the road.

WALT CIASTON, TRAVELER: Between the two vehicles, we would use a good tank full of gas for the trip back and forth, which you're talking in the range of 30 gallons, whatever it is. By using one, we'll cut that in half.

CHERNOFF: Along the nation's highways, many Americans are cutting back this holiday weekend, if not with the size of their vehicle, then with the distance they'll travel.

New Jersey resident Bob Mayfield typically drives to Maine for Memorial Day.

BOB MAYFIELD, TRAVELER: This year, with the gas prices, we're going down to Pennsylvania, just a couple of hours away.

CHERNOFF (on camera): Closer?

MAYFIELD: A lot closer. A lot closer. A lot less gas.

CHERNOFF (voice-over): Gas is only one part of a more expensive holiday for those who will be renting vehicles. Rates are up 20 percent from last year. It'll be a challenge to save elsewhere. AAA estimates food and lodging are up more than 5 percent, meaning a family of four will spend an average $261 a day for meals and hotel this weekend. That's why the Ciaston family plans to eat at their vacation home, which will help them continue feeding the GMC Yukon.

(END VIDEOTAPE)

And gas prices here, not cheap at all. As you can see, $2.979, Miles, well above the national average.

M. O'BRIEN: Yes, but you don't have to pump it yourself, right?

CHERNOFF: That's right, that's the advantage in New Jersey.

M. O'BRIEN: There you go.

CHERNOFF: That's right, no self-serve here.

M. O'BRIEN: Yes, yes, Sandy (ph) likes to go to New Jersey to buy gas. But I keep reminding her it's six bucks to go through the tunnel or the bridge, and I think that negates the advantage of that, anyway.

Allan Chernoff.

CHERNOFF: They'll get you one way or the other.

M. O'BRIEN: Yes, yes, one way or another is right.

Allan Chernoff along the turnpike there.

The morning's top stories are straight ahead, including this, passing an immigration bill in the Senate was probably the easy part. Now it has to get by the House and the Conference Committee. Is there any way these two disparate bills can be compromised somehow?

And hundreds of security screeners' badges and uniforms are stolen. What does that mean for airport security?

Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

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