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American Morning

War on Terror; The Fight for Iraq; Blair's Exit Plan; New Hostage Video

Aired September 07, 2006 - 06:00   ET

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


SOLEDAD O'BRIEN, CNN ANCHOR: Morning. Welcome. It is Thursday, September 7. I'm Soledad O'Brien.
MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien.

Here's a look at what is happening this morning.

We're just learning about an arrest in connection with the so- called Baseline Killer case. Phoenix, Arizona police have arrested a man for sexual assault that may have some connection to that string of killings. The Baseline killings part of an ongoing serial killing spree, a pair of them in the Phoenix area, more details coming out. There's a press conference under way at this hour and we are monitoring it for you right now.

S. O'BRIEN: In international news, Israel is going to lift its air and sea blockade of Lebanon today. Israel has been assured that international forces will stop arms from getting to Hezbollah. The eight-week-old blockade has been just disastrous for Lebanon's economy.

British Prime Minister Tony Blair is expected to announce a timeline for his resignation today. The Prime Minister Blair is going to speak at 9:00 a.m. Eastern Time. Reports say, though, he's going to leave the office in the fall of 2007 two years ahead of the next election.

M. O'BRIEN: The day after his big admission about secret prisons, President Bush planning speech number four on the war on terror today. President Bush plans to talk about the intelligence gaps pre-9/11 and how tools like the Patriot Act protect America from terrorism. The president speaks from suburban Atlanta 10:20 Eastern Time. CNN with live coverage.

The president of Iran today challenging President Bush to a debate at the United Nations on Iran's nukes. Mahmoud Ahmadinejad says he'll be at the U.N. on the same day President Bush plans to speak, September 19. The White House rejected that idea once before.

S. O'BRIEN: John Bolton expected to get committee approval today as U.N. Ambassador, then the Senate is going to debate his nomination. Bolton has been doing the job under a recess appointment that was made by President Bush after repeated blocks by Senate Democrats.

Chad Myers is at the CNN Center with a look at the forecast for us this morning. Hey, Chad, good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad, and good morning, Miles.

We're still watching Florence. It's going to be a major effect here for Bermuda, although I don't think it's going to really approach the U.S. Obviously it still could, it's still way out there. And they're still trying to really find the center. They did not fly into the storm. It's still too far out there for them to get to. This storm, though, does make a run at Bermuda and the winds will be 110, possibly even higher than that to a Category 3 hurricane. Right now a 50-mile-per-hour storm.

(WEATHER REPORT)

Back to you guys.

M. O'BRIEN: Thank you very much, Chad.

Amid the president's terror speeches have been a full disclosure and the admission that the CIA ran secret prisons. Fourteen suspected terrorists were held in them but since have been transferred to the prison at Guantanamo, Cuba. So what is next for them? The president has some ideas, but he'll need Congress to change the law.

AMERICAN MORNING's Bob Franken joining us from Washington with more.

Bob, good morning.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning, Miles.

And you can ignore or not ignore the fact that these speeches come within the context of a political campaign, but you have the president making the disclosures that in fact, as reported and criticized for reporting, that there have been these secret CIA prisons.

The president says while he's not shutting them down, he has emptied them and has sent the people to Guantanamo to now face legal proceedings, legal proceedings that have not been determined yet. Congress is trying to decide whether some of what the president called these alternate means of interrogation can find their way into these judiciary proceedings, the judicial proceedings, that's up to Congress.

In any case, the president says that his motives about removing these prisoners was that the time had come to do so.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're now approaching the five-year anniversary of the 9/11 attacks and the families of those murdered that day have waited patiently for justice. Some of the families are with us today. They should have to wait no longer. So I'm announcing today that Khalid Sheikh Mohammed, Abu Zubaydah, Ramzi Binalsheibh and 11 other terrorists in CIA custody have been transferred to the United States naval base at Guantanamo Bay.

(END VIDEO CLIP)

FRANKEN: And now we have to wait and see what Congress does to set rules to try and accommodate a Supreme Court decision saying Congress must act to come up with rules that meet international standards to conduct what are often called military tribunals -- Miles.

M. O'BRIEN: It seems like it would be a long road ahead before that would ever occur.

FRANKEN: Well it certainly seems that way. There had been talk, you'll recall, about shutting down Guantanamo. I don't think that's going to happen anytime soon.

M. O'BRIEN: Bob Franken in Washington, thank you -- Soledad.

S. O'BRIEN: There are more bombings rocking Baghdad this morning. The worst of the attacks targeting Iraq police near a gas station. As many as 10 people were killed in that attack.

Let's get right to CNN's Michael Holmes. He's live in Baghdad for us this morning.

Hey, Michael, good morning.

MICHAEL HOLMES, CNN CORRESPONDENT: Hi, Soledad.

A familiar tale from here after a slow start to the morning here, 19 dead, 65 wounded, really a string of attacks. The worst of it, 10 killed, 17 wounded, many of them police, a suicide car bomb right here in Baghdad. Also in the capital, three killed, three wounded by a car bomb near a police patrol, the same area as one went off yesterday. Central Baghdad, a car bomb outside a fueling station, 2 dead, 23 wounded. The list goes on. There were IEDs. There were mortar attacks. Two bombs in the south of the capital killed three or wounded three policemen as well.

As you say, the focus very much on police. And this, as the weekend approaches where there is a major religious festival in Karbala. Tens of thousands, perhaps hundreds of thousands, of people heading down there, always a security worry -- Soledad.

S. O'BRIEN: We know, Michael, that the Iraqi military and the U.S. military are signing this accord to begin this transfer of power. What exactly is this accord and what's the significance of it? Does it mean the power is transferred immediately?

HOLMES: Well it's really a paper thing, you know. Major General William Caldwell calls it gigantic, that was his word. And you certainly can call it significant in a ceremonial sense, a formality if you like. It's the handing over of the command structure to Iraq's -- of Iraq's armed forces to Iraqis.

But we need some context here. How many forces are ready to come under that command structure? Well it turns out not many. This includes the Navy and the Air Force, but Air Force, 800 members. We asked the military defense how many people are in the Navy. He didn't know, but our estimate is about 600 men.

As for the Army, one division, that's all that's ready to come under full Iraqi control. And the country has 10 divisions. So, in essence, 90 percent of the military isn't ready to come under that Iraqi control.

Major General Caldwell says divisions may be handed over at the rate of one or two a month in the months ahead, but that's by no means certain. But I suppose you could say that a process is under way -- Soledad.

S. O'BRIEN: Ceremonially gigantic.

Michael Holmes is in Baghdad for us this morning.

Michael, thanks -- Miles.

M. O'BRIEN: In Great Britain, the war in Iraq giving ammunition to opponents of Prime Minister Tony Blair. He is expected to announce the date he will resign. The announcement to come about three hours from now. The prime minister is one of President Bush's biggest supporters on Iraq.

CNN European political editor Robin Oakley joining us live from London with more.

Hello, -- Robin.

ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR: Hello, Miles.

Well, Tony Blair today, it has to be said, thanks largely to his foreign policy, is fighting for his political life.

(BEGIN VIDEOTAPE)

OAKLEY (voice-over): He won his party a record three consecutive general elections, the last less than 18 months ago, but how much longer will Tony Blair be able to hang on to his job? And if he doesn't, how much will President George W. Bush be blamed for the downfall of a man derided in his home media as Bush's poodle. Opinion polls are slumping and jumpy Labour lawmakers have been urging Blair to name a date for his departure.

First he told them to stop being obsessed. Then loyal ministers said he'd be gone within a year. That didn't work either. Now Britain's best-selling tabloid newspaper, "The Sun," insists he'll quit as Labour leader on May 31 next year, handing over to his elected successor on July 26. But Blair could even be forced out before then. Home policies, where he and his party don't see eye to eye, are part of it, but following Bush into Iraq harmed him most. PETER KELLER, CHAIRMAN, YOUGOV POOLS: The biggest, single thing that has undermined Tony Blair's credibility of the general public has been Iraq.

OAKLEY: The U.S. president openly praises his staunchest ally.

BUSH: Tony Blair is a leader of conviction, of passion, of moral clarity and eloquence. He is a true friend of the American people.

OAKLEY: But that just weakens Blair more.

KELLER: Tony Blair's close relationship with George Bush is undoubtedly costing him support in Britain because he's seen by the public to be in cahoots with, on the whole, frankly, a despised U.S. president.

OAKLEY: While he was winning them elections, Labour lawmakers were prepared to forget all that. But now they're fearful for their own political skins and it's all used as ammunition against him.

(END VIDEOTAPE)

The question now, Miles, is whether by naming a date, or at least giving a general indication of when he'll go, Tony Blair can buy off the critics and last through until next year, or whether things are at such a fever pitch now in his Labour Party that he's going to be forced out before then -- Miles.

M. O'BRIEN: Which sort of begs the question, if he's in such deep trouble, why not just step down now?

OAKLEY: Yes, you wonder why he wants to go on, really, because he's fighting his own party for almost every policy that he wants to push through. But of course he, like every other occupant of political office, wants to leave a legacy behind him. He wants to leave in an untroubled fashion. He wants to leave, really, with the plaudits of the crowd in his ears. But it's very difficult to see how he's going to contrive that now -- Miles.

M. O'BRIEN: Exactly.

Robin Oakley at 10 Downing Street, thank you very much.

Here in the U.S., the political world focused on who will succeed George Bush little more than two years from now. A new CNN poll just released minutes ago revealing some early favorites. Thirty-one percent of Republicans said they would vote for former New York Mayor Rudy Giuliani. Senator John McCain the next closest choice, 20 percent for him. And 12 percent said they'd favor the former Speaker of the House Newt Gingrich.

On the Democratic side, 37 percent looking towards Senator Hillary Clinton as their nominee and 20 percent said they would vote for former Vice President Al Gore. John Kerry, John Edwards also making it into the double digits there, just barely.

The poll was conducted by the Opinion Research Corporation for us here at CNN -- Soledad.

S. O'BRIEN: New problem facing fire crews in Montana, bees. Nobody really knows why, but firefighters are reporting 40 to 50 stings a day. It's happening in America today. And some of those stings so bad that they're requiring medical attention. They're still fighting that fire. It's called the Derby Fire. One hundred and eighty thousands acres burned. It's about 45 percent contained.

In southern Nevada, crews there are battling a 300-acre fire. It was sparked by lightning. It's burning in the Red Rock Canyon national conservation area. Winds not helping, it's actually spreading the fire. That conservation area is home to wild horses and endangered desert turtle and several other species.

In Florida, either tomorrow or next month for a space shuttle Atlantis launch. NASA is going to know more this afternoon. Engineers are trying to decide if it's OK to launch with a faulty power generating fuel cell. Not enough time to fix it before tomorrow's launch window closes. Unless NASA changes the launch rules, the next shot after that could be end of October.

In addition to -- the Philadelphia Museum to tell you about this morning. Remember in the movie "Rocky," Sylvestor Stallone runs up and down the steps of that museum to train. Well now a bronze Rocky statue is going to put in place, despite lots of complaints. The city's Art Commission voted to put it on a street-level pedestal right near those museum steps.

And take a look at this, that's a proud new mama. A little, tiny panda. Can hardly see the baby panda. Just about the size of a stick of butter. According to the Zoo Atlanta, it is only the fifth giant panda cub born in the U.S. since 1990. Zookeepers are delighted, as you'd expect. Listen.

(BEGIN VIDEO CLIP)

DWIGHT LAWSON, VP, ANIMAL PROGRAMS & SCIENCE: The cub is quite vigorous. It was screaming and crawling around right from the get-go, so we're really excited about that. All indications are that she's going to be a great mom and that the cub has got a healthy start to it.

(END VIDEO CLIP)

S. O'BRIEN: Look at that, it's little.

M. O'BRIEN: There it is, cute.

S. O'BRIEN: There it is.

M. O'BRIEN: What a cutie. Wow! Looks just like his mama.

S. O'BRIEN: Without the white and black fur and much, much smaller.

M. O'BRIEN: Yes. S. O'BRIEN: Later this morning, we're going to talk about -- more about this little baby panda, find out exactly how mom and the baby are doing.

M. O'BRIEN: Definitely no Suri hair there.

S. O'BRIEN: Not yet, at least.

M. O'BRIEN: Yes.

Still to come in the program, the first public words from a girl who escaped after eight years in captivity.

(BEGIN VIDEO CLIP)

NATASCHA KAMPUSCH, KIDNAP VICTIM (through translator): I tried to scream out but no sound came out.

(END VIDEO CLIP)

M. O'BRIEN: More of her harrowing story just ahead.

Plus, an investigative reporter becomes part of the story in a way he probably didn't anticipate, and we have the videotape for you.

S. O'BRIEN: Plus, it's Starbucks getting a little hot and bothered. One school principal wants those coffee cups covered up. We'll explain why.

And Carrie Lee has got our business headlines this morning.

Good morning, -- Carrie.

CARRIE LEE, CNN CORRESPONDENT: Good morning. Thank you. Good morning to everyone.

A $21 million Merck probe weighs in on Vioxx, but will it help the drug giant in court? We'll have that story and more coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: This morning some new information about an arrest into a serial killer investigation in Phoenix. Police announced the sexual assault arrest is connected to the so-called Baseline Killer investigation. So far hasn't been linked to any of the other 22 open cases, including the eighth murder.

(BEGIN VIDEO CLIP)

SGT. ANDY HILL, PHOENIX POLICE DEPT.: For quite some time now we've been conducting an investigation into the Baseline Killer case. There have been thousands of man hours put into this case, lots of investigative leads have come up. We have made an arrest in one case in that series. And I think it's very important that you understand we have arrested a suspect in just one sexual assault case. (END VIDEO CLIP)

S. O'BRIEN: And you also have to understand they're making that announcement at 3:00 in the morning local time. Now police say they still have several photo lineups to conduct this morning and that might give them more information on the investigation. So limited details, but they are making that announcement this morning -- Miles.

M. O'BRIEN: This just in to us right now, Paris Hilton could face some trouble and some potential jail time, apparently picked up for driving under the influence in Hollywood early this morning. According to The Associated Press, Hilton was arrested after failing a sobriety test. Her blood alcohol level was reportedly .08, that's right at the legal limit in California. We're working on more details in that for you. We'll bring them to you as we get them.

Let's get a check of the weather now, Chad Myers at the CNN Center.

Hello, -- Chad.

MYERS: Good morning, Miles.

All eyes on Florence, obviously, Tropical Storm Florence, 50 miles per hour. There's the storm right there. We do expect this thing to make a big right-hand turn on up toward Bermuda. And that's kind of what we've expected all along is this big turn. And the forecast does turn it, continues it into the Bahamas and then the big right-hand turn.

The problem is now the Bahamas not really out of the problem yet because the cone still is there. But Bermuda, you're almost right smack dab in the middle of the cone where it would be most likely 110 miles per hour. That's a pretty significant storm there.

(WEATHER REPORT)

Back to you guys.

S. O'BRIEN: Yes, it does kind of make sense, actually, right,...

MYERS: Yes.

S. O'BRIEN: ... because there's sort of nowhere for the water to go?

MYERS: Right.

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

MYERS: You're welcome.

S. O'BRIEN: Twenty years after his capture, Israel's most famous MIA has been heard from again. Ron Arad vanished after his plane was shot down over Lebanon back in 1986. Well this week a never before seen footage of him aired in Lebanon and in Israel. You can imagine the feeling for Israelis, especially when you consider that three Israelis are currently being held hostage today.

CNN's Paula Hancocks live for us in Israel.

Good morning to you, -- Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Good morning, Soledad.

Well, it is a face that every single Israeli knows and it's a story of a capture that every single Israeli has been following for the past two decades. There is new video out today, but will this actually solve the mystery of Ron Arad?

(BEGIN VIDEOTAPE)

HANCOCKS (voice-over): This is Ron Arad, Israel's most famous prisoner of war.

RON ARAD, PRISONER OF WAR: I am a soldier in the Israeli Army.

HANCOCKS: It's the first time Arad's voice has been heard in 20 years. Seen smoking a cigarette in his cell, Arad talks in English about the pilot training he underwent.

ARAD: Not only aeronautics and genius (ph)...

HANCOCKS: This video is part of a documentary from Lebanese broadcaster LBC. Experts say the images were likely filmed before 1989.

For Arad's family, it raises more questions than it answers.

DAVID HOROVITZ, EDITOR, "JERUSALEM POST": It's no doubt that somebody from the Hezbollah gave the video cassette to the Lebanese reporter. So now there is no doubt that this is the Hezbollah message. Now the question is what kind of message is it?

HANCOCKS: This is the moment Israeli airman Ron Arad bailed out of his plane after it was shot down over Lebanon in 1986. He was captured on the ground by the Shiite Amal organization. When negotiations for his release failed, it is believed he was sold to Hezbollah in 1988.

Israel has a nationwide fixation with Ron Arad, in fact, with any soldier missing in action.

UNIDENTIFIED MALE: Israel has always been extraordinarily vulnerable in terms of soldiers who go missing or are captured, even soldiers who are killed, wanting to get them back, ideally of course alive, wanting to get bodies back, being prepared to agree to astoundingly asymmetrical exchanges.

HANCOCKS: This new documentary also focuses on previously unseen footage of the moment Hezbollah kidnapped three other Israeli soldiers in October 2000. The remains of the three soldiers were released four years later in a prisoner swap. The release of all this new video at this time is particularly compelling to Israelis as the fate of three more kidnapped soldiers is unknown, one taken into Gaza, two into Lebanon.

Mindful of failed negotiations to secure the release of Ron Arad, thousands of Israelis demonstrated last week to put pressure on the government not to let the same happen with the most recent military hostages.

(END VIDEOTAPE)

Now the friends and family of Ron Arad were also at that demonstration, saying that the government must act much quicker this time around. They don't want another family to go through what they have gone through over the past two decades -- Soledad.

S. O'BRIEN: Paula Hancocks in Israel for us this morning.

Paula, thanks -- Miles.

M. O'BRIEN: Still to come, finding fault. The big drugmaker Merck spending $21 million to see if anyone acted irresponsibly handling the pain reliever Vioxx. We'll tell you what's in that report.

Plus, oil prices may be, just may be bringing a smile to your face.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: The big drugmaker Merck spent about $21 million, 20 months to report on itself and came up -- well, they came up smelling like a rose. It's funny how that works.

S. O'BRIEN: Shocker.

M. O'BRIEN: Carrie Lee is here with details.

LEE: Twenty-one million, 20 months and 1,700 pages in this document, so quite extensive one would assume. Merck's handling of Vioxx basically finds that management did act with integrity when it marketed and developed Vioxx and never knowingly put patients at risk.

Now they said that they've already addressed some of the concerns and criticism raised by the report that they have fixed some of these problems. They say those problems were minor. Still, some outsiders criticizing this report as being self-serving.

The big question, will this report be used in court, because you know Merck has over 14,000 cases against it regarding Vioxx. One plaintiff attorney says this is an expensive PR stunt. He doubts the report would ever be used in court. That remains to be seen.

M. O'BRIEN: Why didn't... LEE: But still, spending a lot of money to do this.

M. O'BRIEN: I should say. Why didn't they go for some sort of independent investigation?

LEE: Well it is pretty independent. And Merck's board established a special committee, six outside directors, one of them a former federal judge. Now they say no members were actually asked if they had a conflict of interest, though as specifically, but their positions would mean that they automatically did not. So that's the finding from Merck. We'll see...

S. O'BRIEN: So they never asked any of the people who were doing the investigation was there any sort of conflict of interest in the case as they investigated Merck?

LEE: Correct, never...

S. O'BRIEN: Who brought them in to do the investigation?

LEE: ... if they had conflicts of interest, but their professional ethics would require them to raise such issues. A former federal judge, people like this, it would have -- they -- their position pretty much predetermines that they wouldn't have this. This is what they're saying anyway.

M. O'BRIEN: Yes.

LEE: So that's the latest on Merck.

Let's talk about oil prices now falling to five-month lows, down over a dollar yesterday to $67.50. Summer driving season is over, we're passed Labor Day, demand tends to fall then. Also we've seen some easing supply concerns. So that can be some nice news for oil watchers.

However, not enough to help stocks yesterday, the Dow down over 60 points. Major market indices lower across the board and futures are pointing to a weak start for this Thursday morning.

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

LEE: My pleasure.

M. O'BRIEN: Have a good day.

LEE: OK, you too.

M. O'BRIEN: Soledad.

S. O'BRIEN: We're going to take a look at the morning's top stories straight ahead, including British Prime Minister Tony Blair reportedly on his way out soon. We're expecting an official announcement this morning.

Something brewing at Starbucks, we'll tell you what has some coffee lovers just steamed this morning.

And there is some big news on Wisteria Lane, one of the "Desperate Housewives" has a secret. We're going to tell you what it is.

That's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

MILES O'BRIEN, CNN ANCHOR: Happening this morning, one man arrested in the baseline killer case. The baseline killer accused of eight murders and 11 sexual assaults in the Phoenix area. Two men were arrested last month in the so-called serial shooter case that's been going on there as well.

Paris Hilton in trouble again, arrested early this morning in Hollywood, suspected of driving under the influence. She failed a field sobriety test. She could face three years' probation and a mandatory alcohol program.

The space shuttle "Atlantis" will not launch today, NASA still trying to figure out if it's ok to fly with a bulky fuel cell. If engineers give the go ahead they will aim for a launch just before noon eastern tomorrow.

SOLEDAD O'BRIEN, CNN ANCHOR: President Bush heads to Atlanta this morning to continue a series of speeches on the war on terror. It's going to be speech number four, it was speech number three that caught everybody's attention with an admission that the CIA is running secret prisons and that 14 high-level detainees have been moved to Guantanamo Bay in Cuba. AMERICAN MORNING's Bob Franken live in Washington for us. Hey Bob, good morning.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning Soledad. What the speech was not, was an announcement that there is a plan to close down these highly controversial prisons, nor to revise the so- called alternate interrogation techniques that are used within these CIA prisons. This was juxtaposed with a pentagon announcement that heretofore, hereinafter, the prisoners who are in the jurisdiction of the Department of Defense will have very strict standards to ensure humane treatment. Those include 14, the final 14 who have been transferred from the CIA prisons, final for now, to Guantanamo Bay where they'll face military commissions, trials, once they can agree on rules for them. The president said the time had come.

(BEGIN VIDEO CLIP)

BUSH: We're now approaching the five-year anniversary of the 9/11 attacks and the families of those murdered that day have waited patiently for justice. Some of the families are with us today. They should have to wait no longer. So I'm announcing today that Khalid Shaikh Mohammad, Abu Zabaydah, Ramzi Binalsheibh, and 11 other terrorists in CIA custody have been transferred to the United States naval base at Guantanamo Bay.

(END OF VIDEO CLIP) FRANKEN: They're going to face trials once the rules for trials can come up, rules that would satisfy the U.S. Supreme Court. Congress is grappling with that. One of the big discussions Soledad is whether evidence that was gained under these coercive techniques that the president called alternate techniques could be used during one of these trials. Soledad?

SOLEDAD O'BRIEN: And that's a big question too. Bob Franken for us this morning, thanks Bob. President Bush makes his fourth speech in a series on terrorism this morning to an audience in suburban Atlanta. CNN's of course is going to bring that to you live at 10:20 a.m. eastern time.

MILES O'BRIEN: The president has no bigger supporter for the Iraq war than Tony Blair. And today in Great Britain it appears it may be costing the British prime minister his job. An announcement expected in just a few hours. Our European political editor Robin Oakley joining us from London with more at number 10 Downing Street. Robin?

ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR: Hello Miles. Well Tony Blair at the moment is heading a party which seems to be in melt- down over the question of his future. He's also locked in a furious battle with Gordon Brown, the Chancellor of the Exchequer, who lives next door to him at number 11 Downing Street. Gordon Brown is the man who wants Tony Blair's job and is expected to get it when Tony Blair steps down. Now we've seen seven parliamentary aides and one minister resign yesterday because Tony Blair won't name a specific date. Now we're told today we're going to get from Mr. Blair a timetable for his departure sometime next summer, which is the time we'd always expected him to go. But it's being compressed all the time. And the question is whether Tony Blair is going to be able to disarm the critics with an announcement today, or whether they'll go on fighting to get him out sooner. Even before Christmas, perhaps Miles.

MILES O'BRIEN: Well the way we set this up, it may be a little too simplistic. It's not all about the war in Iraq and Tony Blair's relationship with President Bush, is it?

OAKLEY: Well it isn't. He's got lots of battles with his own party on different domestic issues. His whole style as prime minister, announcing policies as an aside at a dinner somewhere like Britain's going to switch back to having nuclear power stations. But the Iraq war I think is the biggest factor and the fact that Tony Blair is seen as so close to President George Bush, a man who is not popular with the electors in Britain. Those have undermined Tony Blair's popularity in the opinion polls, the popularity of his party. Now a whole lot of his MPs are fearing for their own political skins. Labour is at its worst level for 19 years in the polls. The conservative opposition with a feisty new young leader David Cameron, nine points ahead and heading for an election victory next time around on those figures Miles. That's what's concentrating minds.

MILES O'BRIEN: Robin Oakley at number 10, thank you very much.

Happening in America today, on Capitol Hill, a congressional subcommittee holds a hearing on BP's pipeline spills at the nation's largest oil field in Alaska. The panel releases a statement this morning at 10:00 eastern, we're watching it.

In New York City, the tribute in light returns to the Manhattan skyline on the fifth anniversary of 9/11 for one night only. Last night workers were testing the display. Word is testing will continue the next couple of nights as well.

In Missouri, a teenager is recovering this morning after an attack with his own prosthetic leg. The teen is suffering some facial injuries after two other teens pulled off his prosthetic leg and started beating him with it. It was apparently motivated because of his disability, police are calling it a hate crime. A 17-year-old facing felony assault charges.

Television reporting can be a dangerous job at times. An investigative reporter was attacked while working on a southern -- a story in southern California on a real estate scam. Listen up for a second. In any case, the reporter is in the blue shirt there. Take down -- the other guy is trying to stop the other guy --

UNIDENTIFIED FEMALE: You guys are driving us away -- you're invading my life. --

MILES O'BRIEN: You have the jest, that's the wife. They're part of an ongoing investigation by the reporter. The reporter is taken to the emergency room, scratches and bumps and bruises and cracked ribs.

SOLEDAD O'BRIEN: You wonder if the photographer should have helped him maybe, as opposed to shooting it.

MILES O'BRIEN: As I always say, the photographer didn't miss a frame, watched his reporter go down, didn't he. Anyway, in San Diego, a happy reunion between a boy and his dog. This 8-year-old who is fighting leukemia had his puppy stolen a few days ago from a parking garage. Boy, we've got some stories for you this morning, don't we? The puppy was found and his mom was happy to bring him home. I've lost the will to live, Chad Myers. Stealing puppies? Ripping prosthetic limbs off? What's going on with the world this morning?

CHAD MYERS, CNN METEOROLOGIST: Fights at a football game, you know. I went to a boxing match and a hockey game broke out, I don't know.

(WEATHER REPORT)

SOLEDAD O'BRIEN: A country singer, a legendary movie director, a Broadway composer are among those who are going to receive Kennedy Center Honors this December. The annual awards announced yesterday. Country singer Dolly Parton is one of the honorees, she's going to receive her medal at the White House given by President Bush the following day. The other honorees include producer/director Steven Spielberg, singer Smokey Robinson, composer Andrew Lloyd Webber and classical conductor Zubin Mehta.

"Desperate Housewives" star Marcia Cross right there on the right, expecting her first child, just got married. Publicist though says that the 44-year-old actress is pregnant. She married a stockbroker Tom Mahoney in June after a 10-month engagement. The baby's due in April. Good for them.

MILES O'BRIEN: Still to come in the program, finally speaking out, after eight years in - really in hell. A girl imprisoned in a basement telling a harrowing tale to say the least.

SOLEDAD O'BRIEN: And unlocking Lebanon. Israel is now set to pull up the iron curtain, drop its two-month-long blockade.

MILES O'BRIEN: And Starbucks with a little spice. The chain returns to its roots, changes its logo, and as a result is causing quite a stir at, at least one school, we'll explain.

(COMMERCIAL BREAK)

SOLEDAD O'BRIEN: Here's a look now at stories that CNN correspondents around the world are covering today.

(BEGIN VIDEO CLIP)

ANTHONY MILLS, CNN CORRESPONDENT: I'm Anthony Mills in Beirut where the Lebanese are eagerly awaiting the lifting of the Israeli imposed air and sea blockade, which has cost the country hundreds of millions of dollars in lost revenue.

MICHAEL HOLMES, CNN CORRESPONDENT: I'm Michael Holmes in Baghdad. The stream of bodies found around the capital seems to have stemmed today. However, the bombs continue, nearly a dozen people killed, dozens wounded in a string of attacks.

AL GOODMAN, CNN CORRESPONDENT: I'm Al Goodman in Madrid. A Spanish government source tells CNN President Bush's speech was like sweet music to European allies who have been highly critical of U.S. treatment of many detainees. But a leading Spanish judge who has investigated Islamic terrorism, (INAUDIBLE) said President Bush's speech was an admission of failure in the war on terror in the way the U.S. administration has carried it out. We're expecting more details this day in Madrid from U.N. Secretary-General Kofi Annan at a news conference with the Spanish prime minister.

(END OF VIDEO CLIP)

SOLEDAD O'BRIEN: The little Austrian girl who was held in a basement for eight years is speaking out for the first time. Her name is Natascha Kampusch, and she was just 10 years old when she was abducted on her way to school. She tells Austrian television about that day.

(BEGIN VIDEO CLIP)

NATASCHA KAMPUSCH, KIDNAPPING SURVIVOR: He grabbed me. I tried to scream out but no sound came out. Not a thing. Yes. I -- I was -- despairing, very angry. I was so angry with myself that I hadn't changed over to the other side of the street. That I hadn't gone to school with my mother in her car. It was very -- it was just awful. I used to get claustrophobia in this small space. I used to throw water bottles against the walls or I'd bang on them with my fists. So someone could hear me, I don't know. I just don't know. It was absolutely awful. And I'm sure if he hadn't taken me up into the house at some point where I had a bit more room to move, I think I might have gone mad.

(END OF VIDEO CLIP)

SOLEDAD O'BRIEN: If you want more information on this story or any of our top stories, go right to the website cnn.com. Miles?

MILES O'BRIEN: Still to come in the program, federal prosecutors want something from Home Depot and you can bet it's not advice on how to put in a new floor.

Also ahead, Starbucks celebrates the anniversary by bringing back an old logo. And a school principal gives it an "R" rating. We'll tell you all about that. Stay with us.

(COMMERCIAL BREAK)

MILES O'BRIEN: Starbucks is serving a really hot cup of coffee. In celebration of its 35th anniversary, some of its shops are using the original mermaid logo. It seems the Starbucks siren is a bit on the busty side. And that has some coffee lovers steamed, shall we say. Amy Finley from our affiliate KING reports.

(BEGIN VIDEOTAPE)

AMY FINLEY, KING: 35 years after the first cup of Starbucks was sold, the java giant is returning to its artistic roots. This month, Starbucks' cups sport the original logo, a familiar mermaid. But for some she's showing a little too much skin.

UNIDENTIFIED FEMALE: We had no awareness that this was a situation.

FINLEY: Kent School District spokesperson Becky Hanks says one of her female elementary school principals is asking teachers who bring the cups to work to make sure they're covered up.

BECKY HANKS, KENT SCHOOL DISTRICT SPOKESWOMAN: The principal of that school just made a decision that she thought that it could be distracting for students.

FINLEY: One student we talked with agreed.

VICTORIA AWITEN, STUDENT: The kids would talk about it and --

UNIDENTIFIED MALE: What do you think the students might say?

AWITEN: Like, "ooh, it's a naked lady on the front."

FINLEY: But 12-year-old Victoria's dad points out --

DAVE PHELPS, PARENT: I think she's seen worse in movies.

FINLEY: He says whatever distraction there might be, it doesn't call for a rule.

PHELPS: I really don't think it's a big deal. I mean you know, of course there's a lot of little geeky kids that sit there and point out little things like that, "Ooh, she's got boobies." But other than that I don't think there's a problem with it.

FINLEY: Other residents say they don't either.

UNIDENTIFIED FEMALE: If I had an elementary school kid, I wouldn't care if they saw that logo. And if they're actually looking that close at their teacher's coffee cup, then that's probably another issue.

(END OF VIDEOTAPE)

MILES O'BRIEN: I guess you could say --

SOLEDAD O'BRIEN: Not paying attention.

MILES O'BRIEN: If the teachers don't use the sleeve, are they busted? Any way, that was from Amy Finley of our affiliate KING in Seattle. The original logo will be used by the Oregon and Washington state Starbucks until October. So they're sticking to their gun guns there.

SOLEDAD O'BRIEN: The tempest in a teapot dies down.

MILES O'BRIEN: That's good, that's good.

SOLEDAD O'BRIEN: Coming up this morning, going to take a new look at the American dream. Americans today really make it on our own? Or is the only way to wealth to earn it the old fashioned way -- inherit it? We'll take a look, stay with us.

(COMMERCIAL BREAK)

SOLEDAD O'BRIEN: Welcome back everybody. A look now at some of the stories we're working on for you this morning. President Bush admits to secret prisons. We'll tell you how the world's reacting this morning. And just within the past half hour, Phoenix police announced an arrest in connection with a serial killing spree. Campaign 2008, Candy Crowley is going to join us to countdown potential hopefuls. And an heir to the Hilton fortune arrested. We'll tell you what Paris did to land her right before a judge. And a little panda-moneum today. The zoo in Atlanta welcomes a new baby panda. There's the mama. We'll show you the baby pictures too.

MILES O'BRIEN: Stock options, we love to talk about stock options these days and back dated stock options. And we really want to know how we get them. Gerri Willis is here with "Minding your Business." Well we're just kidding. But seriously.

GERRI WILLIS, CNN ANCHOR: No, we're not talking -- you know back dating stock options, you don't want to do this because the regulators are coming after you. But the amusing story this morning, is the Senate has finally discovered the controversy over back dating of stock options. The Senate Finance Committee which writes tax law says it's considering reducing or eliminating a deduction that encourages companies to pay their execs with options. Senator Chuck Grassley says shareholders and employees are getting ripped off. Of course the story's been going on about a year now.

SOLEDAD O'BRIEN: The midterm elections are coming up, they've been very busy.

WILLIS: You know, you've got to do what you've got to do to get re-elected, right? This all centers around companies back dating options, and we talk about this all the time. That means giving execs options at cheaper prices so that they can make more when they sell. At least 80 companies are being investigated and of course today Home Depot in the news. Federal prosecutors want information for their options probe of Home Depot. Previously disclosed in an SEC investigation, the company says it found $10 million in unrecorded expenses.

And a new story about Ken Lay, federal prosecutors also going after Ken Lay. Lay's lawyers say his conviction should be overturned since he can't have an appeal. The Department of Justice wants the judge to delay a ruling until Congress considers legislation changing that rule. So a little controversy going on there and a big debate.

SOLEDAD O'BRIEN: So because he's dead, they say that he can't appeal so he shouldn't be convicted in the first place? But he can't be the first person who's died sort of in the middle of their trial.

WILLIS: Yeah, but he's probably one of the few people that has such fabulous representation.

MILES O'BRIEN: Right.

SOLEDAD O'BRIEN: All about the lawyer.

MILES O'BRIEN: And there's an issue here about the money he leaves behind and they're going after that money.

WILLIS: Very good point, very good point Miles.

SOLEDAD O'BRIEN: Interesting.

MILES O'BRIEN: What's up next?

WILLIS: Well, we're going to tell you about GM's announcement, and former President Clinton's new car. You'll want to hear about that.

MILES O'BRIEN: Oh really? Ok.

SOLEDAD O'BRIEN: My guess it's not a gas-guzzling SUV.

WILLIS: You're like car knack today, Soledad. SOLEDAD O'BRIEN: Because they wouldn't be pitching that as a story. That would be a bad thing, I'm going to guess.

MILES O'BRIEN: A Hummer wouldn't sell so well.

SOLELDAD O'BRIEN: We look forward to that. Thanks Gerri.

(WEATHER REPORT)

ED HENRY, CNN CORRESPONDENT: I'm Ed Henry at the White House where the president has finally acknowledged that the CIA operated secret prisons. He's also transferred 14 Al Qaeda terrorists to Gitmo, but now Congress has to figure out how to prosecute them.

JAMIE MCINTYRE, CNN CORRESPONDENT: And I'm Jamie McIntyre at the pentagon where they've released new guidelines on how tough military interrogators can be on prisoners. I'll tell you what they can and can't do, just ahead.

SOLEDAD O'BRIEN: Speaking out after eight years in captivity. A young girl imprisoned in a basement now grown up tells of her nightmare.

MILES O'BRIEN: What could be a big break in Phoenix, police there say their search for a sexual predator and a serial killer has led to an arrest.

SOLEDAD O'BRIEN: And a proud new mama in Atlanta. Yes, there she is. We have the first videotape of the little panda bear baby, Lu Loon, a four ounce cub. That's ahead on this AMERICAN MORNING. Good morning everybody, welcome, I'm Soledad O'Brien.

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

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