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American Morning

Nuclear Negotiation; Paying The Price; Picture Bidding War; Minding Your Business

Aired June 07, 2006 - 07:30   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: Happening this morning, debate over a same-sex marriage amendment ends in the Senate this morning with a key vote. The push to change the Constitution is expected to fail.
The former leader of the Marine platoon at the center of the Haditha investigation says Marines -- those Marines showed great restraint. First Lieutenant Jeffrey Grapes (ph) left Kylo (ph) company three months before the alleged massacre. He told Reuters, though, it's possible that some of those Marines are responsible for the killings in Haditha.

A new report this morning says secret CIA prisons probably existed. European investigators from the Council of Europe, which monitors human rights, says they have no concrete evidence but they believe there were drop off points near secret centers in Romania and Poland. They also allege that seven European nations, including Great Britain, knew what was going on.

Good morning. Welcome back, everybody. I'm Soledad O'Brien.

MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien. Thanks for being with us.

The U.S. and some European allies putting together a package of incentives for Iran to try to diffuse that tense nuclear standoff. The U.S. now saying it is willing to negotiate so long as the Iranians suspend their effort to make nuclear fuel. But "The Washington Post" is reporting this morning that in the end the west might allow the Iranians to enrich uranium depending on how those negotiations go.

Joining us now from Washington with more is Hans Blix. He is the former chief U.N. weapons inspector. He was in Iraq in the run-up to the invasion of Iraq by the U.S., the head of the Weapons of Mass Destruction Commission, and he's out with a new report entitled "Tackling the WMD Challenge," which offers some comprehensive proposals on solving this problem in a broad way.

Mr. Blix, good to have you with us.

HANS BLIX, FORMER CHIEF U.N. WEAPONS INSPECTOR: Good morning.

M. O'BRIEN: I'd like to share with you, just to begin here, what the president is currently saying about Iran. Let's listen for a moment.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will see if the Iranians take our offer seriously. The choice is theirs to make. I have said the United States will come and sit down at the table with them so long as they are willing to suspend their enrichment in a verifiable way.

(END VIDEO CLIP)

M. O'BRIEN: All right. Let's go over the last line there, "so long as they are willing to suspend their enrichment in a verifiable way." That is an interesting prerequisite for negotiations, isn't it?

BLIX: Yes, I think so. And I don't think it's not really enough that they be willing to suspend. I think the west has been saying that they'll have to suspend it first and thereafter there will be negotiations. And this is a matter of prestige then. Iranians will suspend first and then talk about the suspension.

M. O'BRIEN: Well, is that a reasonable request? Is that something the Iranians are apt to abide by in advance of negotiations?

BLIX: Well, in negotiations, you can try many things and I think the Iranians will need to know a lot of advantages that they could get if they suspend their enrichment for a longer time. But they are saying that they have a right to nuclear energy. And by that they include also the right to enrich, which is true. The Japanese and the Brazilians do that, but you don't have to exercise that right in the world you have if you can gain a lot by abstaining from it for a period of time or for a long period of time. And this is what they're now looking into, what could they gain by abstaining from utilizing the rights?

M. O'BRIEN: Well, let's look at some of the incentives that are being discussed that are out there. We have just a list. We don't know what's completely in the package. But some of the ideas here are light water nuclear reactors technology, spare parts for their airliners -- they have a lot of Boeing and Airbus airliners that need spare parts -- civilian nuclear technology, membership in the World Trade Organization. Are these the kinds of incentives that you feel are appropriate and, more importantly, are these the -- you know the term is carrots. Are these the carrots that will motivate the Iranians?

BLIX: Yes, I think they are part of them. And many of them have been on the table for a long time. It was long ago that the U.S. said that they would be ready to support Iran for membership in the World Trade Organization and spare parts for Boeings, et cetera. The query (ph) whether the Iranians would also not demand to have some assurances about security. That they would not be subject to attack from the outside or some intervention inside to remove the government as the (INAUDIBLE) government was removed by the west in 1953.

M. O'BRIEN: Well, that's interesting you should mention that because there was an assurance given to the regime in North Korea along these lines. BLIX: Well, yes, there was a willingness to give that assurance. And in the case of North Korea, they also said on the western side that they would be ready to help establish diplomatic relations between Japan and North Korea and United States and North Korea. And that means, of course, a normalization going away from a more belligerent relation.

M. O'BRIEN: Will inspections work in Iran? In other words, how much do we really know about what's going on there now? And how will we know, if the Iranians made some vow to change the act, how will we know if they're abiding by that?

BLIX: Well, they accepted what is called the additional protocol with the National Atomic Energy Agency. And that's very intrusive form of inspection. In fact, they went much further than that. I would be much more optimistic about inspections in Iran than about North Korea, because Iran is a country with a long international experience. They have long been exposed to inspection. The North Koreans have been a very closed country and for them it would be novel and more difficult.

M. O'BRIEN: Let me ask you this. Are you optimistic that the west, the U.S. and European allies can stop the Iranians from building nuclear weapons?

BLIX: Yes, I'm optimistic on that. I think they've come a long way. But we've heard already last year that they were at a wall when the Iranians were not willing to move then. Now, since then, they have said to Iran that we are willing also to sell to you light water reactors. I think that's a good step because that indicates that the west is not out to stop modern technology for a developing country. They are worried about enrichment that could be used both for producing fuel and for producing weapons.

M. O'BRIEN: Hans Blix, the former chief U.N. weapons inspector. He's now chairman of the Weapons of Mass Destruction Commission, out with an interesting report with some thoughts on how to end the problems of WMD all across the planet. Thanks for your time.

BLIX: Thank you.

M. O'BRIEN: Soledad.

S. O'BRIEN: People in eight states voted in important primaries on Tuesday. Here are some of the more notable results.

In Alabama, standing Republican Governor Bob Riley pretty easily beat his controversial opponent. He was facing former State Supreme Court Chief Justice Roy Moore who made headlines, you'll recall, for refusing to remove a 10 Commandments display from a courthouse. Riley faces now Democratic Lieutenant Governor Lucy Baxley in November's election.

In New Jersey, there will be a familiar name on the ballot in the fall. Tom Kean Jr. won for Republican primary for U.S. Senate. He's going to face incumbent Democrat Robert Menendez in November. Kean's father was governor of New Jersey for most of the 1980s.

In Iowa, Secretary of State Chet Culver will be the Democratic contender for governor. He's going to take on Republican Congressman Jim Nussle, who is leaving his national House seat. They're vying to replace outgoing Democrat Tom Vilsack.

In Montana, controversial Republican Senator Conrad Burns turned back the challenge of three other Republicans. Ethic questions will likely follow him, though, and through his re-election bid. Burns has been battling accusations after it was revealed that he took contributions from the lobbyist Jack Abramoff.

California Governor Arnold Schwarzenegger easily won his primary. It took about 90 percent of the vote against three Republican unknowns. He's going to face State Treasurer Phil Angelides in the governor's race. Angelides narrowly won the Democratic nomination. None of the eight Democratic candidates garnered 50 percent of the votes.

The biggest race was down in San Diego. That's where Republican Brian Bilbray narrowly won the party's first big national test. He could fill the House seat that was vacated when Randy "Duke" Cunningham resigned to start serving a federal prison term for bribery.

That brings you up to speed. Let's check on the weather now. Thirty-seven minutes past the hour. Rob Marciano is in for Chad who's out today.

Hey, Rob.

(WEATHER REPORT)

M. O'BRIEN: Banking on hybrids. One company encouraging employees to buy the gas sipping vehicles.

S. O'BRIEN: Then the world is anxiously awaiting all of us, each and every one of us, those first pictures of little baby Brangelina, baby Shiloh. "People" magazine paid a lot of dough for that picture.

M. O'BRIEN: Is that the picture? Is that it? No. Is that it?

S. O'BRIEN: No. No, that's the other baby. There's now three. We're going to tell you exactly what it took to snag that first shot of little baby Shiloh.

DAN LOTHIAN, CNN CORRESPONDENT: I'm Dan Lothian at a truck stop in Atalissa, Iowa, where we will be taking a look this morning on how truck drivers are being impacted by the high cost of fuel. It's coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Let's get a check on the CNN gas gauge this morning. If you're buying gas today, expect to pay about $2.88 for a gallon of regular unleaded. That's a small savings from what we were paying just a month ago, $2.90. Two cents there. No big deal. It's a lot more, though, than we were paying at this time last year when a gallon of gas cost $2.11 a year ago. Don't see numbers like that, $2.11, in a really long time.

That brings us this morning to our week long series called "Paying the Price in the Heartland." This morning we're taking a look at how the rising cost of fuel is affecting people in Iowa. Today, how independent truckers are hurting. AMERICAN MORNING's Dan Lothian is in Atalissa, Iowa, this morning.

Hey, Dan, good morning.

LOTHIAN: Good morning.

Well, you know, truckers, they spend so much time on the road, they live on the road. And so fuel prices are something that they pay so much attention to. Just to give you a sense of what the going rate is here. The average across the state of Iowa regular $2.74. The mid range is $2.88. Both of those going up a penny since Monday. Diesel, which is what truck drivers use in those 18-wheelers, $2.83 a gallon. That has been pretty much steady since Monday.

Now the truck drivers who operate for big companies, those companies can typically absorb the cost of high fuel. But those independent truckers are having a very hard time.

(BEGIN VIDEOTAPE)

LOTHIAN, (voice over): In Brian McDowell's home on 80 stunning acres in Peru (ph), Iowa, it's hard to find anyone who is stressed. But lately, every time he sees off his family . . .

UNIDENTIFIED FEMALE: Bye.

BRIAN MCDOWELL: Bye. You be good, OK?

UNIDENTIFIED FEMALE: I will.

LOTHIAN: Fires up the engine of his semi and heads out.

MCDOWELL: Here we go.

LOTHIAN: Stress seems to find him and follow him down the road.

MCDOWELL: Because you worry about the money and everything all the time.

LOTHIAN: Talk to me about how the gas prices have impacted your bottom line.

MCDOWELL: They're killing me.

LOTHIAN: McDowell, an independent trucker, says rising fuel costs have cut his profits in half.

MCDOWELL: On a good week, say I made $1,000. I'm down to $500 now. A $600 week I might bring home $200 out of it compared to what I was making. I mean, it hurts.

LOTHIAN: McDowell receives a lesson in economics every time he pulls up to the pumps.

MCDOWELL: Fuel is one of the biggest expenses we have. Fifty- two gallons. But you've just got to put up with it.

LOTHIAN: As we bounced along the highway to pick up a load of bricks, McDowell explained why a fuel surcharge customers must pay him doesn't relieve all of his pain.

MCDOWELL: But it's only set once a week. So if the fuel surcharge rate is set at, say, $2.76 a gallon fuel on Monday and if fuel jumps to $2.82 on Tuesday . . .

LOTHIAN: You have to pay the difference?

MCDOWELL: Yes.

LOTHIAN: So this veteran trucker is shifting gears to save money. He's cut down on his speed.

MCDOWELL: Any time you can save anything, a tenth, two tenths of a mile pickup, translates to dollars in your pocket.

LOTHIAN: He's had his engine fine tuned to be more efficient. Will often drive at night. Less wind resistance he says. And then there are the little things.

MCDOWELL: Instead of running into a convenience store and buying a bottle of pop or a bottle of water, carry it with you, you know? Any place that you can cut costs and if it isn't absolutely necessarily, don't bother.

LOTHIAN: McDowell also tries harder to get more lucrative loads. While hauling bricks to Chicago may not pay all the bills, the bridge span he'll bring back is a cash cow.

MCDOWELL: We don't make money until it's delivered.

LOTHIAN: Driving to feed his family and determined to keep rolling despite the high costs.

MCDOWELL: I'm a very competitive person and I don't like to be forced into anything. So as long as I can keep making it work, nobody's going to force me out of business. I hope.

(END VIDEOTAPE)

LOTHIAN: McDowell says that he wanted to become a trucker ever since he was 16 because he wanted to be able to drive across the country while getting paid. Well now he has to pay a high price to do something that he loves.

Soledad.

S. O'BRIEN: A high price that's rising, too. Dan Lothian for us this morning. Dan, thanks.

Tomorrow Dan's going to travel from Atalissa to a school in Eldridge, Iowa. The spike in the cost of fuel has cost some teachers in the school district their jobs. Dan's going to tell us why. More of our week long series, "Paying the Price in the Heartland" is tomorrow right here on AMERICAN MORNING.

Miles.

M. O'BRIEN: Coming up, Andy is "Minding Your Business."

Also ahead, battle over baby Brangelina. The winner is -- "People" magazine. They won the rights. Actually, they didn't just win it, they paid big bucks for the rights to publish those photos of the baby in the U.S. We'll tell you about the bidding war and where that money is headed. Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: So you all know that there's some big money being paid for the first pictures of Brad Pitt and Angelina Jolie's new baby. More than $4 million. CNN's Brooke Anderson tells us that the pictures, which are due out this week, involved a big old bidding war. And it's not the first time either.

(BEGIN VIDEOTAPE)

BROOKE ANDERSON, CNN CORRESPONDENT, (voice over): Brad and Angelina have been chased around the globe as the paparazzi pursued its holy grail. Now the photos are out, shot by Getty Images. A commodity so guarded and valuable we can't show you them here. Even its CEO hasn't seen them yet.

JONATHON KLEIN, CEO, GETTY IMAGES: The reason I haven't seen them is because of the security around the pictures. It's the first time we've done a major shoot where the only people who have seen the pictures are the photo editors and the sales people who are working with customers to sell the pictures.

ANDERSON: "People" magazine won a tabloid bidding war and paid a reported sum of $4.1 million for the exclusive North American rights to the first glimpse of baby Jolie-Pitt and says it will publish the pictures in this week's issue on news stands Friday. When the tabloids begin heralding the news in January the couple was with child, this was the big money shot -- a visibly pregnant Angelina. "People" paid an estimated $500,000 for exclusive rights to it. The money went to one of Brad and Angelina's favorite charities, Yele Haiti.

The philanthropic group is one more than more stars such as Julia Roberts and Courtney Cox have taken to relieve the stress of being pursued by tabloid photographers. Photos of their first borns were sold and the money given to charity. "People" magazine reportedly gave $500,000 to a Hurricane Katrina relief fund for the first photos of Britney Spears' first born, Sean Preston. In 2002, after giving birth to son James Wilke, Sarah Jessica Parker tipped off photographers to when and at which exit she and her newborn would be leaving the hospital. The family stood and posed on the steps for several minutes. Everyone had the shot. Turning what some predicted would be a million dollar photo into a discount special.

Brooke Anderson, CNN, Hollywood.

(END VIDEOTAPE)

S. O'BRIEN: That $4 million plus for the baby's pictures are going to go to charity. Which, of course, is the whole reason they would agree to it in the first place.

M. O'BRIEN: Right. Now the baby cute? I mean there's a good genetic, you know . . .

ANDY SERWER, CNN CORRESPONDENT: Good cheekbones? You mean all that?

M. O'BRIEN: Yes, you might -- all the stuff is there for a cute baby.

S. O'BRIEN: Brad's all right looking. Angelina's OK. And you can bet that's going to be a cute baby. Can't go wrong.

SERWER: Yes.

S. O'BRIEN: What can you do? Good genes in that family.

M. O'BRIEN: Andy Serwer, Priuses for all.

SERWER: Yes. Corporate America is getting into this act, you guys, incentivizing, as they say, its employees to buy Prius and other hybrid cars. Listen to this. Bank of America, one of the nation's largest institutions, financial institutions, announcing a plan today where it will give $3,000 to each one of its employees in a couple of different cities who buy a hybrid car. First of all, just 21,000 employees eligible in L.A., Boston, Charlotte. Some of their big cities. But eventually all 175,000 employees will be eligible. And you already get $3,100 back on a tax credit. So say a $22,000 Prius, if you work for the bank, you'd get over $6,000 back on a $22,000 sticker price.

S. O'BRIEN: Good deal.

SERWER: That is. And Bank of America's not alone, you guys. There are other companies that are getting in this act as well. Google has a very similar program, $5,000. Timberland also $5,000, the shoe and apparel company. And you get to park near the chairman right in front of headquarters, which is kind of fun.

M. O'BRIEN: Oh, nice.

SERWER: A couple of others . . .

S. O'BRIEN: Unless you're pulling in late.

SERWER: Yes, unless your late, then you want to sneak -- no. Hiperian (ph) is another company that has -- and there are a couple of other municipalities, as well. New Haven. The city of New Haven in Connecticut allowing you to park free at its city parking meters if you have a hybrid. Interesting program.

S. O'BRIEN: That is a brilliant idea.

SERWER: Isn't that cool? And the state of Massachusetts is also looking into incentives for people in that state as well.

S. O'BRIEN: That's a good idea.

M. O'BRIEN: Time Warner?

S. O'BRIEN: Yes, how's our parent company doing?

SERWER: Not on the list. Yes, not on the list. I don't see it here.

M. O'BRIEN: Nothing, huh?

SERWER: I don't see that.

And coming up next hour in biz, we're going to talking about Steve Case, speaking of AOL Time Warner. He has a new company that involves luxury travel that we're going to talk about. So kind of cool there.

S. O'BRIEN: All right.

M. O'BRIEN: By the way, is the plural of Prius Pria (ph) or Priuses (ph)?

SERWER: A Priory (ph). No, that's completely different.

S. O'BRIEN: Wait a minute. No it's not.

SERWER: No it's not.

M. O'BRIEN: Sounding like a lawyer here.

S. O'BRIEN: Thanks, Andy.

M. O'BRIEN: All right, in a moment, the top stories, including the Senate voting on a constitutional ban on same-sex marriage this morning.

Instead of a draw down, thousands more troops are heading into Iraq.

The first of thousands of prisoners being released in Iraq today. It's an olive branch from the unity government to Sunnis. Republicans hold on to a key House seat in California in a test of GOP strength.

And a dust storm of Biblical proportions. Power winds blow a wall of dust over Phoenix, Arizona, on the evening of 6-6-06. Stay with us.

(COMMERCIAL BREAK)

DANA BASH, CNN CORRESPONDENT: I'm Dana Bash on Capitol Hill where a constitutional amendment banning same-sex marriage will fail in the Senate this morning, but supporters are likely to claim victory anyway. We'll parse the politics of that coming up.

KATHLEEN KOCH, CNN CORRESPONDENT: I'm Kathleen Koch at the Pentagon. Signs of draw down in U.S. troops isn't happening any time soon. I'll have more on that coming up.

M. O'BRIEN: Authorities say that thwarted terror attack in Canada included plans to storm the parliament and kill the prime minister. And that's not all. We'll have details.

S. O'BRIEN: And pretty amazing pictures to show you from Arizona this morning. This major dust storm looks like something out of science fiction movie. We'll tell you what happened there just ahead on this AMERICAN MORNING.

Welcome back, everybody. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien.

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