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American Morning

Offer to Talk to Iran; Marine Massacre?

Aired June 01, 2006 - 06:32   ET

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

MILES O'BRIEN, CNN ANCHOR: Happening this morning, June 1st, the official start of the 2006 Atlantic hurricane season. One expert predicts 17 named storms. Nine expected to become full-fledged hurricanes.
Computer maker Sun Microsystems to cut 5,000 jobs over the next six months. Revenue at Sun falling for four straight years now.

And filmmaker Michael Moore sued by an Iraq war vet for $85 million. Sergeant Peter Damon says Moore used clips of a TV interview with him in that move Fahrenheit 9/11 without permission. Damon says the clips falsely portrayed him as anti-war.

Good morning to you. I'm Miles O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien.

A major policy shift to tell you about on Iran. The U.S. is now offering to be part of the talks with Iran about its nuclear program. Secretary of State Condoleezza Rice has just arrived in Vienna to talk to members of the U.N. Security Council.

CNN's David Ensor is live for us in Vienna this morning.

David, good morning.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Good morning, Soledad.

Well, in the building behind me, which is the British Embassy here in Vienna, Condoleezza Rice, the secretary of state, and her counterparts, the foreign ministers of Russia, China and the major European nations, are talking right now. They're trying to figure out, they're trying to agree on a package of both sticks and carrots.

Really two packages, and they want Iran to make a choice between the two. If Iran chooses to have the carrots, it will have to stop its uranium enrichment program and then the United States, for the first time, as announced yesterday by Condoleezza Rice, is willing to sit down with Iran and the Europeans and work out this nuclear crisis.

So that is what they're trying to settle here in the building behind me, the final details of exactly what punishments there would be for Iran if it does not agree, and what carrots, what offers there would be if it does -- Soledad.

S. O'BRIEN: The first time in 27 years. Are there any early indications that in fact Iran's going to bite, go for either/or package?

ENSOR: Well, the initial reaction from Tehran was to call this all a propaganda exercise. American officials say they expected that sort of reaction. And they're sort of expecting that the next reaction will be for Iranian officials to come out and say, sure, we'll talk, but without preconditions. But Secretary Rice made very clear yesterday, and officials reiterate today, the condition is that Iran cease enriching uranium before the talks can start, otherwise there will be no talks, and the U.S. says there will be sanctions -- Soledad.

S. O'BRIEN: David Ensor for us this morning watching everything from Vienna.

David, thanks for the update -- Miles.

M. O'BRIEN: New this morning, the top U.S. military commander in Iraq is ordering all troops to undergo so-called core values training. That training highlights moral, legal and ethical standards on the battlefield. This comes with the results of the investigation into that alleged massacre by Marines in Haditha, possibly just days away.

CNN's Ryan Chilcote live now from Baghdad with more -- Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Miles, just as that U.S. military investigation into what took place in Haditha is moving towards completion, Iraq, the Iraqi prime minister has announced that Iraq will open its own investigation. (BEGIN VIDEOTAPE)

CHILCOTE (voice-over): These are the death certificates of the Haditha victims. It's the first time they have been shown publicly, and they make shocking reading.

KHALID SALMAN AN-SAYIF, LAWYER (through translator): Most of the reports show that the bodies arrived to Haditha Hospital with bullet wounds in the head or chest or abdomen.

CHILCOTE: Among the death certificates shown to CNN by the victims' lawyer, those for 76-year-old Abdul Hamid Hassan Ali (ph), his wife and their son. According to the coroner's report, the son's body came in totally charred. That may be because, according to witnesses, U.S. Marines used grenades, as well as gunfire, in their assault that day.

The director of the hospital in Haditha says the bodies of all 24 civilians were brought in by the U.S. military. It was 1:00 a.m., hours after the alleged massacre. The hospital director says his night shift examined the bodies before they were released to the families.

WALID ABDUL KHALAK UBAIDI, HOSPITAL DIRECTOR (through translator): Abdullah Hamid (ph) was only 3 years old; Hamid Salem (ph), 2 years old; Aisha Salem (ph), 2 years old; Zanab Salem (ph), 5 years old.

CHILCOTE: The mayor of Haditha says the town will never forget what happened on November 19, 2005, or how it began.

EMAD JAWAD HAMZA, HADITHA MAYOR (through translator): Three families and a number of college students were executed at the hands of U.S. soldiers after the roadside bomb exploded. The people of Haditha have declared this a day of human catastrophe and contend that war crimes have been committed by U.S. soldiers. It was a black day in Haditha's history.

CHILCOTE: He and others in Haditha say they immediately went to the U.S. military and demanded an investigation and punishment.

(END VIDEOTAPE)

CHILCOTE: But, Miles, it was three months before the U.S. military in Baghdad opened up that investigation, and that has upset a lot of people here -- Miles.

M. O'BRIEN: Well, how upset? I mean, a lot of people are saying this has a greater ripple effect potentially than Abu Ghraib.

CHILCOTE: Well, we haven't seen that yet. We have seen the Iraqi prime minister talk about this, saying that he thinks there should be an investigation, that he's concerned. But this is not at the level of Abu Ghraib, that Abu Ghraib was at. It doesn't look like it's even close at this point.

There's just that concern, I think. And it's a very appropriate concern.

You heard the general -- you were talking about the general issuing these new orders for training, saying that 99.9 percent of the troops here are doing great job, performing their jobs remarkably. But there are some, as he put it, who have chosen the wrong path.

He said that the U.S. military needs to make sure that those who have chosen the wrong path are not the people that the Iraqis see on the street, and that there needs to be more training. And so he's instituted this new training policy. It's going to last for 30 days, where the troops will be -- they'll have their knowledge of ethical issues and legal issues and moral issues on the battlefield reinforced.

It's 30 days of training. It begins effective immediately. And it's, of course, to try to avoid another kind of Abu Ghraib situation here -- Miles.

M. O'BRIEN: Ryan Chilcote in Baghdad. Thanks very much -- Soledad.

S. O'BRIEN: Miles, we want to get an update to everybody. You're looking at some pictures coming into us from Turkey this morning. We told you there was an explosion reported in the eastern part of Turkey, apparently in the Iskadar (ph) district of the city, on the Asian side, in fact, of Istanbul.

Police sources are now saying that the blast was actually some kind of an explosion, a gas pipe explosion? Let me just get into our -- let's see here. They're saying a gas pipe, Istanbul police sources are reported as saying.

There are some reports as well that an explosion caused by a fire at a rifle range is what caused some 14 people to be injured. That's coming from Turkish media.

So you're looking at some of the pictures coming to us from the eastern part, the Iskadar (ph) region in Istanbul. No reports of anyone killed. And we continue to follow this story for you.

It looks like there was some kind of -- some kind of a fire and explosion in a five-story building is what we are hearing. We're going to obviously continue to follow the story, bring you an update as soon as we get some more information out of Istanbul. But this is what we know at this time.

We've been also covering for you the first day of hurricane season, which officially begins today. Now, the first hurricane last year didn't come until July. That was Hurricane Dennis. But still, the official season begins today.

We begin this morning with Chad Myers. He is our severe weather expert.

Chad, good morning. And everyone understands officially beginning and actually beginning are two very different things.

CHAD MYERS, CNN METEOROLOGIST: Sure.

S. O'BRIEN: The numbers though in the estimates last year, so wrong. I mean, really just off the mark. Are they ever wrong on the other side? Do they overestimate the number of hurricanes?

MYERS: Let's hope so.

(WEATHER REPORT)

S. O'BRIEN: Thanks, Chad. Appreciate it.

M. O'BRIEN: Thanks, Chad.

S. O'BRIEN: CNN, of course, all over the 2006 hurricane season. All this morning during AMERICAN MORNING we're going to be checking in with our reporters who are there.

Sean Callebs is in New Orleans. He's looking at the levees and the floodgates.

Susan Candiotti is in Florida. She is going to talk to people who are still fighting the insurance battle from last year's storms.

And Gerri Willis is building a better house, a hurricane-proof house. She's going to tell you what you can do to make your hope safer this summer.

That's all ahead. You'll want to stay with CNN, your hurricane headquarters, this morning.

M. O'BRIEN: Is Gerri really building the house herself?

S. O'BRIEN: She is -- Gerri will come and build a home for you.

M. O'BRIEN: She'll come and build a home. She's a contractor.

S. O'BRIEN: No, but she's going to explore the technology for all of us.

M. O'BRIEN: She looks good in a tool belt, as I understand.

Still to come on the program, a terrifying ordeal for an attorney abducted in a parking lot. Details of a statewide manhunt, as well as her dramatic rescue by police in Alabama.

S. O'BRIEN: And he actually helped turn around the once struggling Circuit City. So why in the world would the CEO turn down several -- $7, rather, million in pay? Huh. Who is this guy?

M. O'BRIEN: Wow.

S. O'BRIEN: Andy's "Minding Your Business" just ahead.

First, though, a look at some of the other stories that are making news on this Thursday morning.

(COMMERCIAL BREAK)

S. O'BRIEN: Happening "In America" this morning, on Capitol Hill -- my, there we go. No more free tickets for Senate Democratic Leader Harry Reid. His office now says Senator Reid misstated ethics rules over his acceptance of free boxing tickets.

Earlier, Senator Reid had said he believed it was entirely permissible for him to accept ringside seats from Nevada boxing officials in 2004 and 2005 because the gifts were from his home state. Now he's decided to avoid taking those kinds of gifts in the future.

Florida is getting ready -- getting rid, rather, of its military- style boot camps for young offenders. They're going to be replaced with programs that avoid physical discipline. Governor Jeb Bush signed the bill last night. It comes five months after the death of a 14-year-old boy at a state camp.

The brushfire battle is on again in southern Florida. A growing fire has destroyed 2,800 acres in the Everglades. So far, nobody's been evacuated. Fire officials are keeping a close eye though on homes in the Miami-Dade County area.

The chainsaws will be buzzing in the northwest part of Indiana today. People there are cleaning up from strong storms. At least one tornado touched down in the area. Nobody was injured. Several homes though were damaged and dozens of trees were knocked down.

Delta Airlines pilots will be making less money starting today. A federal bankruptcy judge in New York approved a deal on Wednesday cutting pilots' pay by about 14 percent. The pilots approved the deal by a nearly two to one margin. The pay cuts are expected to save Delta $280 million a year.

Falling foam won't keep NASA from sending the next shuttle into space this July. A just completed review found that some foam will fall off during liftoff. It won't be enough, though, they say to damage the shuttle. Discovery is on the pad at the Kennedy Space Center right now in preparation for launch sometime during the first 19 days of July.

A look at some of the stories making news this morning.

Still to come on AMERICAN MORNING, the latest hurricane preparations in Florida. Why are so many people not prepared?

And the state of the levees and floodgates in New Orleans, have they finally been fixed? We've got full coverage this upcoming hurricane season.

Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: No surprise there that Hurricane Katrina was the costliest hurricane, $80 billion is the price tag you just saw right there.

Happening this morning, the 2006 hurricane season. It begins officially today. One leading expert predicts 17 named storms this season, nine will become major hurricanes.

Secretary of State Condoleezza Rice is arriving in Vienna today, meeting with European leaders. Yesterday she said the U.S. was willing to join talks with Iran over its nuclear program. There's a condition, though. Iran would have to stop uranium enrichment first.

And President Bush is talking about immigration reform today at the U.S. Chamber of Commerce. The president wants the Senate and the House to reach an agreement. He's also expected to talk about immigration when he meets with his cabinet later this morning.

M. O'BRIEN: Andy Serwer has taken his seat.

Good morning to you, sir.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Good morning to you, guys.

Coming up in business news, demonstrators as Exxon's annual meeting try to put board members on ice.

Plus, remember the Exxon Valdez?

And a CEO who gives back, for real.

S. O'BRIEN: For real?

SERWER: For real.

M. O'BRIEN: No McGuire there, huh? All right.

S. O'BRIEN: Under the category "Strange but True" this morning.

SERWER: That's about right.

M. O'BRIEN: It's real news these days when they give back. All right. We'll see you in a bit.

Also ahead on the program, the official start of the hurricane season today. Is the federal government better prepared to handle another storm of Katrina proportions? We'll talk to the agency's director -- that's FEMA's agency -- David Paulison ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: A little rebellion to speak of this morning in the business world. Andy Serwer is "Minding Your Business".

Good morning.

SERWER: Good morning, Soledad.

I would characterize that as little. Limited dissent at yesterday's annual meeting of Exxon in Dallas.

Shareholders did cast an unusually large number of votes against directors, but most measures opposed by the board were rejected by shareholders. In other words, business as usual.

Demonstrators did have some eye-catching ideas. You can see some signs there across the street.

And check this out, an ice sculpture. I like this one. Look at that, Exxon in ice. A very nice photograph, demonstrating or suggesting that global warming was being propagated by this company. In other words, melting, global warming.

M. O'BRIEN: So as it melted...

SERWER: Melts.

M. O'BRIEN: ... this was the -- you know, you've got to wonder.

S. O'BRIEN: That's kind of a...

(CROSSTALK)

M. O'BRIEN: ... if you have to explain it that much...

SERWER: Was that too much explanation?

M. O'BRIEN: Maybe just do a poster next time.

(CROSSTALK)

SERWER: I thought it was a very nice photograph, though.

M. O'BRIEN: Oh, you did? You liked it?

SERWER: I liked the photograph.

S. O'BRIEN: Oh, the photo's quite lovely.

SERWER: It was beautiful with the sun there -- thank you.

Now, remember the Exxon Valdez oil spill, 1989? Eleven million gallons of crude flowing into the Prince William Sound. Exxon paid $900 million to clean it up, but guess what? There's a re-opener provision. The state and federal officials seeking an additional $100 million from the company.

S. O'BRIEN: Interesting timing.

SERWER: Yes, with all those profits.

S. O'BRIEN: With all those profits, they said.

SERWER: Do you have a little bit more to clean up?

S. O'BRIEN: Let's revisit that. Shall we?

SERWER: And, you know, that's basically what's going on there, yes.

S. O'BRIEN: That's interesting.

M. O'BRIEN: Go for the deep pockets.

S. O'BRIEN: Absolutely.

M. O'BRIEN: That's what they always say.

Thank you, Andy.

SERWER: You're welcome.

M. O'BRIEN: The next hour of AMERICAN MORNING begins right now.

MYERS: I'm meteorologist Chad Myers. The first day of hurricane season, and will it be an active one? Dr. Gray thinks so.

SEAN CALLEBS, CNN CORRESPONDENT: I'm Sean Callebs in New Orleans for this hurricane season. Work is still going on, on levees and floodgates. We'll tell you what that's going to mean for the Crescent City.

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