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American Morning

Pakistan and Afghanistan Bicker over al Qaeda; Ramadan Attacks; Shooting Rattles Colorado School; California Wildfire Continues to Rage; Bush-GOP Meeting

Aired September 28, 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, Thursday, September 28. I'm Miles O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien.

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

In Bailey, Colorado, police are searching for a motive in that school shooting that left one student dead. Sixteen-year-old Emily Keyes was killed yesterday after a gunman took several students hostage. Police say the gunman, who has not yet been identified, then killed himself. Classes have been cancelled for the rest of the week.

A few hours from now in Washington, D.C., Hewlett-Packard executives will testify before a House panel. The panel is looking into HP's use of pretexting to investigate corporate leaks. The company's private eyes apparently posed as board members, employees and reporters to get personal data on suspected leakers.

M. O'BRIEN: More bloodshed in Baghdad this morning. A series of bombings across the city has killed at least 2 Iraqi soldiers, at least 10 others wounded. Meanwhile, Baghdad police have discovered 60 dead bodies in just the past 24 hours. All the bodies show signs of torture.

S. O'BRIEN: In just a couple of hours, President Bush will head to Capitol Hill to meet with GOP lawmakers one last time before they head home to campaign for re-election. Today, the Senate is expected to pass the president's detainee bill which spells out how terror suspects are to be prosecuted. The bill passed the House yesterday.

And in southern California this morning erratic winds could complicate efforts to contain that huge wildfire known as the Day Fire. So far the fire has burned almost 250 square miles.

Let's get right to the first check of the forecast with Chad at the CNN Weather Center.

Hey, Chad, good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.

(WEATHER REPORT)

Back to you.

S. O'BRIEN: All right, Chad, thank you.

MYERS: You're welcome.

S. O'BRIEN: It was like President Bush was playing referee last night. The occasion was a dinner with the presidents of Pakistan and Afghanistan. Those neighboring nations, key players in the war on terror, are bickering over their commitment to fighting al Qaeda.

CNN's Suzanne Malveaux has more for us.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): The body language said it all, stiff and distant, President Bush standing between them like a referee. The presidents of Afghanistan and Pakistan shook Mr. Bush's hand, but not each other's.

The two leaders have been bickering very publicly while visiting the United States, pulled together at the White House by President Bush for dinner. Mr. Bush was frank about the need for cooperation.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We have got a lot of challenges facing us. All of us must protect our countries. But, at the same time, we all must work to make the world a more hopeful place.

(END VIDEO CLIP)

MALVEAUX: At the very least, Mr. Bush hopes these two leaders will help him find Osama bin Laden, who is believed to be hiding along their border, and that they continue to support his war on terror.

Pakistan's Pervez Musharraf and Afghanistan's Hamid Karzai, each visited the White House separately this past week, each accusing the other in interviews with CNN's Wolf Blitzer of not doing enough to fight the terrorists thriving in their countries.

(BEGIN VIDEO CLIP)

PRES. HAMID KARZAI, AFGHANISTAN: Afghanistan is doing all it can, together with the international community. We are losing people every day.

(END VIDEO CLIP)

MALVEAUX: Afghanistan's Karzai accuses Musharraf of providing a safe haven for the Taliban, allowing them to cross the Pakistan border to conduct daily raids.

But Musharraf says, Karzai is at fault, refusing to take responsibility.

(BEGIN VIDEO CLIP)

PRES. PERVEZ MUSHARRAF, PAKISTAN: But he is purposely denying -- turning a blind eye, like an ostrich.

He is finding it more convenient to throw the blame on Pakistan.

(END VIDEO CLIP)

MALVEAUX: Musharraf says the problem is, his neighbor is weak.

(BEGIN VIDEO CLIP)

MUSHARRAF: Pakistan is a very, very stable country. We have a strong government. We have a strong military. We have a strong intelligence system. And everything in Afghanistan had broken down.

(END VIDEO CLIP)

MALVEAUX: Karzai responded to Musharraf's comments, saying he was aware of his country's problems.

(BEGIN VIDEO CLIP)

KARZAI: We are a state that was weakened by years of destruction and war and interference.

(END VIDEO CLIP)

MALVEAUX: But he says Musharraf is making conditions worse by supporting breeding grounds in Pakistan for would-be terrorists and by cutting a cease-fire deal with tribal leaders who have close ties to the Taliban.

(BEGIN VIDEO CLIP)

MUSHARRAF: This is the political strategy which is the right direction.

(END VIDEO CLIP)

MALVEAUX (on camera): The White House says it was a very productive meeting, but no breakthroughs. The two leaders did address each other directly, clearing the air, and they ended the evening with a handshake.

Suzanne Malveaux, CNN, Washington.

(END VIDEOTAPE)

M. O'BRIEN: In Iraq, another tough day in what has been a very rough week. Police finding no less than 60 bodies all showing signs of torture in just the last 24 hours. The U.S. military now says murders and executions are the leading cause of civilian deaths in Baghdad.

CNN's Arwa Damon is live there with more, -- Arwa. ARWA DAMON, CNN CORRESPONDENT: Good morning, Miles.

That's right, we have just since Sunday over 130 bodies that have been found in Baghdad alone, all bearing the now trademark signs of torture, of gunshot wounds, of having their hands and eyes bound. In the last 24 hours, 60 bodies were found, this according to the Iraqi Emergency Police. And sectarian violence is not only the number one cause of deaths here, but it is also everybody's number one fear.

Now it has been an incredibly violent morning. We've had at least six explosions, sorry, eight explosions in the capital. A total of at least 8 Iraqis killed, over 50 wounded.

Now all of today's attacks so far have been targeting Iraqi security forces. The deadliest attack happened just about half an hour ago when a car bomb detonated in central Baghdad. Iraqi police responded to the site. When they arrived there, a roadside bomb detonated. At least four Iraqis were killed in that attack, two of them Iraqi police officers, and over 38 wounded.

And this is a common tactic used by the insurgency here, they'll set off one set of explosives, be it a roadside bomb or a car bomb, wait for the Iraqi security forces and U.S. military to arrive and then detonate another explosive, again, either a car bomb or a roadside bomb. This is a tactic used to lure security forces to a certain location -- Miles.

M. O'BRIEN: Arwa, in the midst of all of this, the U.S. military launched a raid on a suspected terrorist house in Baghdad. Eight civilians were killed in that. What's the military saying about that?

DAMON: Well, this actually happened overnight on Wednesday, and it was north of Baghdad in a city called Baquba. They say that they were targeting a senior member of al Qaeda in Iraq who operates in two northern provinces, Diyala Province and Salah an Din Province.

They say that as they approached the target house, they came under gunfire. They say that they made a loud speaker announcement telling the civilians to, you know, remain in their homes, asking that they not fire upon them, that they were coming in looking for a suspected terrorist. But the gunfire continued. At that point they say they called in an airstrike. When they went in to search the target house, they found two suspected terrorists dead and four women. Another woman was also wounded in that attack.

And this is quite common here, Miles. We do very, unfortunately, often see civilians caught in the crossfire between the insurgency and between U.S. and Iraqi security forces. We often hear eyewitness accounts from residents in that area, from family members, that these who died had actually nothing to do with the insurgency -- Miles.

M. O'BRIEN: Arwa Damon in Baghdad, thank you very much.

For more insight into the war in Iraq, this weekend CNN looks at Defense Secretary Donald Rumsfeld. Why is he so feared? Why doesn't he think the Iraq war was a mistake? Watch "RUMSFELD: MAN OF WAR" on "CNN SATURDAY & SUNDAY" 8:00 p.m. Eastern -- Soledad.

S. O'BRIEN: A small community in Bailey, Colorado really in a state of shock this morning after a deadly shooting at the local high school.

Jeremy Hubbard from CNN affiliate KDVR has our report.

(BEGIN VIDEOTAPE)

JEREMY HUBBARD, KDVR-TV REPORTER (on camera): It happened just a few miles away from the scene of the deadliest school shooting in U.S. history and some of the pictures are eerily similar to Columbine. A gunman enters a Colorado high school and within hours, he is dead and so is a young hostage.

The shooting happening at Platte Valley High School in Bailey, Colorado, some 35 miles southwest of Denver. Police say a man fired shots and took six female students hostage inside an English classroom on Wednesday. After hours of negotiation, four of the hostages were released, but then the talks ended. The SWAT team moved in and that, police say, is when the gunman shot one of the hostages and then turned the gun on himself, killing himself.

The sheriff here in Park County, Colorado says the town is grieving. This is one of those towns where everyone knows everyone.

Meantime, classes have been cancelled at the school for the rest of the week while authorities try to figure out what happened.

Jeremy Hubbard in Bailey, Colorado for CNN.

(END VIDEOTAPE)

S. O'BRIEN: Happening in America this morning, how do you get your name on the ballot seat in the New Hampshire House? Well, if it's a tie, you pick a number. Republican candidates Frank Amira (ph) and Matt Henry (ph) tied in the primary, but then Amira won the tiebreaker by having his number roll out of the bottle first.

Former New York City Mayor Rudy Giuliani is coming to the defense of the former President Bill Clinton over Clinton's efforts to fight terrorism. Giuliani said blaming Mr. Clinton for failing to prevent the September 11 attacks is wrong and that President Clinton did everything he could with the information he was provided.

A south Florida teenager upset over some school problems ran away to Cuba. Fourteen-year-old Alfredo Diaz flew to Havana, via the Bahamas, after using his father's credit card to buy a ticket over the Internet. Alfredo had been living in the U.S. with his father for the last six years. He's now in Cuba with his mother. His father is helping -- is urging, rather, U.S. officials to help get his son back.

Seven Philadelphia area men are lucky to be alive this morning. They were rescued from their raft by the Coast Guard about 70 miles off the Delaware coast. The men say they abandoned their 52-foot fishing boat on Saturday when it started taking on water. Near Bridgeport, Connecticut, a rare waterspout sighting. Take a look at this. You can see it in the fog there. The spout which is a tornado that forms over water. It lasted only for a few minutes. Happened over the Long Island Sound. That's a pretty good shot of it. No reports of any damage or injury, but the Coast Guard put out an alert just to be safe -- Miles.

M. O'BRIEN: For firefighters north of Los Angeles, it may seem like an endless day, more than 4,000 of them now battling the so- called Day Fire in Ventura County. A hundred and sixty thousand acres now burned. And the fire, which began on Labor Day, may not be over until Christmas.

CNN's Andy Flick has more.

(BEGIN VIDEOTAPE)

ANDY FLICK, CNN CORRESPONDENT (voice-over): Just as California fire officials seemed cautiously optimistic they had slain the massive Day wildfire, it hopped a fire perimeter in the Lockwood Valley section of Ventura County and regained momentum. Using bulldozers, water tankers and prop planes, nearly 4,000 firefighters are tackling the monster blaze.

JEANNE PINCHA-TULLEY, INCIDENT CMDR., U.S. FOREST SERV.: This fire is wily. This one, it will lay dormant for a day or two or it will slow down for a day or two and then it's off to the races again.

FLICK: Officials issued a precautionary evacuation order for 500 people as flames crept closer.

UNIDENTIFIED MALE: You know our family, you know, we bought a house up here several years ago. We've lived up here for 10 years, and I just hope it's here when we get back.

UNIDENTIFIED FEMALE: So I just -- you know I was told to start packing stuff. So I'm starting to pack my car and I'm just hanging out waiting to see what happens.

FLICK: Recommended evacuations are still in place, but luckily the fire shifted northwest away from homes. People are stopping at information posts set up by the Forest Service to find out where the fire is headed next.

Officials now say the fire could burn into December. It began Labor Day when someone was burning debris in a remote area. Thick smoke will hover over in the area for another month, prompting local health advisories.

I'm Andy Flick reporting from Atlanta.

(END VIDEOTAPE)

S. O'BRIEN: A lethal combination of drugs is what reportedly killed Anna Nicole Smith's son, Daniel, that according to the private pathologist that Anna Nicole hired to conduct a second autopsy on her 20-year-old son. Daniel Smith died earlier this month in the Bahamas, just three days after his mother gave birth to a baby girl.

(BEGIN VIDEO CLIP)

DR. CYRIL WECHT, FORENSIC PATHOLOGIST: He died tragically and I believe quite accidentally as a result of the accumulative effect of three brain depressant drugs: Methadone, which is an analgesic, a painkiller; Zoloft, an antidepressant and Lexapro, an antidepressant.

We knew about Lexapro, Larry, as you will recall from the first battery of tests performed on a specimen submitted, taken during resuscitation at Doctor's Hospital, so that came as no surprise. Methadone and Zoloft come as a big surprise to Anna Nicole, to Howard Stern, to the attorneys, to everybody.

(END VIDEO CLIP)

S. O'BRIEN: Dr. Cyril Wecht talking there. He appeared on Wednesday on "LARRY KING LIVE."

And of course you can catch Larry every night, 9:00 p.m. Eastern, right here on CNN.

Still to come this morning, falling gas prices should hurt Democrats in the polls, but they're not. Take a look at the issue that voters care most about.

And Jeanine Pirro's bid for the New York attorney general spot suffers a major setback only 40 days left until the election.

A porn star Mary Carey doesn't have to campaign for the male vote, but she's got a plan to get women to elect her as governor of California.

Carrie Lee has got our business headlines.

Good morning.

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

A House hearing on the Hewlett-Packard spy scandal starts today and a fugitive former CEO is captured. We'll have those stories and more coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Happening this morning, Hewlett-Packard executives testifying before a House panel in just a few hours. Lawmakers probing HP's investigation of its own board. The company's private eyes posed as board members, employees and reporters to try to get personal data on suspected leakers.

More bloodshed in Baghdad this morning, a series of bombings across the city has killed at least two Iraqi soldiers. Baghdad police finding 60 bodies in just the past 24 hours all showing signs of torture. And in Bailey, Colorado this morning, police searching for a motive in the school shooting that left one student dead. Sixteen- year-old Emily Keyes killed yesterday after a gunman took several students hostage. Police say the gunman, who hasn't been identified, killed himself -- Soledad.

S. O'BRIEN: President Bush will make a return visit to Capitol Hill this morning to huddle with Republican senators before they head out to campaign for re-election.

CNN's Andrea Koppel has more from the Capitol.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT (on camera): For the second time this month, President Bush will rally fellow Republicans here on the Hill in a closed door meeting, this time in the Senate.

During his last visit, Mr. Bush was in the midst of a very public dispute with several senior Republicans in the Senate over a military tribunal bill to put suspected terrorists on trial. Well that impasse has since been resolved. And last night the House cast the bill with several dozen Democrats crossing party lines to support it. The Senate is expected to pass it as soon as today.

This rare return visit comes at the invitation of the outgoing Senate Majority Leader Bill Frist and comes just days before 15 of the Senate's 55 Republicans are set to go out on the campaign trail full time. Much as he did with House Republicans earlier this month, Mr. Bush is expected to field questions and seek to boost morale ahead of those hotly-contested November midterm elections.

Between now and the weekend, Senator Frist has an uphill battle as he seeks to push through additional national security legislation on beefing up the border, homeland security and a defense spending bill.

Andrea Koppel, CNN, Capitol Hill.

(END VIDEOTAPE)

M. O'BRIEN: In California, the governor's race getting an NC-17 rating. Porn queen Mary Carey announcing that she is throwing her garter into the ring yesterday in San Diego. The bare facts, as we know them, she wants to get on the ballot as an Independent write-in. Sound familiar? Well she ran in 2003. She finished 10th out of 135 candidates. I guess everybody runs there. She says it's not a stunt and it's more than -- and we quote her now -- "She is more than just a blonde with big boobs."

An Arkansas mayor stepping down amid charges he offered city water in exchange for sex. Seventy-two-year-old Troy Anderson, the Mayor of Waldron, Arkansas, facing charges of soliciting and paying for sex from two women. Apparently the mayor prevented their water from being turned off in exchange for sex. And in New Hampshire, another surveillance video hit. Check it out. A robber holding a customer at knife point, the store clerk comes to his aid with the bat swinging. The clerk's nickname is Yogi, so naturally he keeps a bat by his side just in case. Another worker chased the robber. Got away, though. To paraphrase the other Yogi, clerking is 90 percent mental and the other half is physical -- Soledad.

S. O'BRIEN: Time for a check of the forecast. Chad has got that at the CNN Center.

Good morning, -- Chad.

MYERS: You go into a place called Yogi's and you don't expect him to have a bat. That's like going into a place called Winchester and not having a gun. Anyway, think about that for a second guys.

(WEATHER REPORT)

S. O'BRIEN: So just kind of a yucky weekend for us.

MYERS: A little bit just because you're under an upper level low. You've had a lot of great weekends in a row, so.

S. O'BRIEN: I'm under an upper level low?

MYERS: Yes.

S. O'BRIEN: OK, I'll go with icky weekend.

MYERS: You have a little low pressure on you keeping you down.

S. O'BRIEN: All right, I'm following you, Chad, thanks.

MYERS: You bet.

S. O'BRIEN: Still to come this morning, check on prime time, Chevy Chase playing a guy who sounds a lot like Mel Gibson. We'll tell you about an episode of NBC's "Law & Order" that's starting to sound like real life.

Also, 7-Eleven convenience store chains telling Citgo Oil of Venezuela adios. We'll explain just ahead. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody.

Here's a look at some of the most popular stories on CNN.com this morning.

More on the death of Anna Nicole Smith's son, the pathologist who conducted a private autopsy says lab results point to accidental overdose of three drugs.

An episode of "Law & Order" starring Chevy Chase as a celebrity who spews religious epithets after he is stopped for drunk driving, despite similarities to the Mel Gibson incident, NBC says it is purely fiction.

And 7-Eleven says politics had nothing to do with dropping Venezuela's oil company as its gasoline supplier. A spokesman said they decided to drop Citgo long ago, not after, in fact, Venezuelan President Hugo Chavez called President Bush the devil at the U.N. But it's interesting timing nevertheless.

M. O'BRIEN: There's the music. That means it's a check for the latest CNN Gas Gauge. The national average now $2.34 for a gallon of unleaded. A year ago it was $2.84. A year ago it was $2.81. Gas prices now going down, does that mean Republican prospects for the election are looking up?

Here's CNN senior political analyst Bill Schneider.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST (voice-over): The drop in gasoline prices seems perfectly timed for the midterm election. Democrats insist the issue will still work for them.

REP. NANCY PELOSI (D), MINORITY LEADER: Energy costs for America's families as over in the course of a year makes a tremendous difference, the increase in energy costs. They will still be an issue in the campaign.

SCHNEIDER: But the latest CNN poll conducted by the Opinion Research Corporation shows a sharp drop in the number of Americans who say gas prices will be an extremely important issue in their vote. Lower gas prices give President Bush an opening to talk up the economy.

BUSH: Our economy is maintaining solid growth and performing in line with expectations.

SCHNEIDER: Do people believe the economy is doing better? Actually, they do. In early September, 44 percent said the country's economy was in good shape. Now, 59 percent feel that way. Some people believe the fix is in, that President Bush deliberately manipulated gas prices to help Republicans. Energy experts pooh-pooh the idea.

UNIDENTIFIED MALE: Surely if you picked up the phone and made, you know, 5 or 10 strategic phone calls, you might be able to influence prices to some degree. But, you know, I think that's a fairly far-fetched theory.

SCHNEIDER: Maybe, but 42 percent of Americans believe it.

The bigger question is this: If Americans are feeling better about the economy, why aren't Republicans doing better in the polls?

Take a look at people who feel the economy is good, but who oppose the war in Iraq. Which issue counts more? Three-quarters of antiwar voters who feel good about the economy give President Bush a negative job rating. Seventy-one percent say they'll vote for a Democrat for Congress.

(on camera): The reason why gas prices and the economy are not having a big political impact, one word: Iraq.

Bill Schneider, CNN, Boston.

(END VIDEOTAPE)

S. O'BRIEN: Business news now. It's going to be a big day as we hear from all the big players in the Hewlett-Packard scandal.

Carrie Lee has got business headlines.

Good morning.

LEE: Good morning. Thank you.

And this includes the former Chairwoman Patricia Dunn, who of course recently resigned from the company amidst this scandal. Also CEO Mark Hurd will be testifying, as well as some other top HP execs.

Now we have already gotten some advanced testimony from Dunn and she's basically saying she thought that what HP was doing in this spy scandal was legal. She says others, including Hurd, knew of the probe. She says she spoke with the operator of the outside detective firm that was hired and that she believed that at every point of contact with him that they were doing everything proper, legal and in full compliance with HP's normal practices, which is a little weird. What are those normal practices? But, anyway, we will find out more once this testimony begins today.

M. O'BRIEN: So she's not going to plead the Fifth, as far as we know?

LEE: It doesn't look like it. We already have quite a bit for the advanced testimony. Now she does say that she didn't learn until the spring of 2005, and this whole investigation started early 2005, but the probe actually involved obtaining access to phone records.

But one interesting thing, since she resigned from the company, there's really no reason why what she says has to match what some of these other executives say, because she's not technically working there anymore, so a little more freedom.

S. O'BRIEN: Right, but couldn't she be liable, I mean if it's a criminal probe now?

LEE: That's true. That's true, but it kind of loosens her up a little bit, potentially. So that is the latest on HP.

Meanwhile, the former CEO of Comverse Technology, the software maker, has been captured after two months on the run. Kobi Alexander was captured, found in Namibia. He's been accused of making $138 million by manipulating stock options at the company. He allegedly transferred $57 million to accounts in Israel. He is an Israeli citizen. So now it looks like he's going to be brought back to the U.S. and could face charges in Brooklyn, so.

M. O'BRIEN: This is not the sneaker company, Comverse?

LEE: This is Com, C-O-M, that's right, software maker.

M. O'BRIEN: Com, got it.

S. O'BRIEN: Comverse.

LEE: And quick check on the markets. Dow added a little bit of ground yesterday, up about 20 points, as you can see. The second- highest close ever, but still, we are 33 points away from the all-time closing high set back in January of 2000.

Looks like a slightly higher open for the markets this Thursday morning. Oil prices, one thing that jumped yesterday, so that hurt stocks a little bit. We'll get a second look, a final look at GDP, gross domestic product, for the second quarter, and that could give us some direction for today.

M. O'BRIEN: Thanks, -- Carrie.

LEE: OK.

S. O'BRIEN: Thank you for watching it.

A look at the morning's top stories straight ahead, including a tragedy in Chicago, a 5-year-old girl, did you hear this story, she died after she went to the dentist.

M. O'BRIEN: Yes, awful.

S. O'BRIEN: It's horrible. We'll bring you some of the details just ahead.

Also, the first pictures coming in from Mars of the Victoria Crater. Science might be on the verge of discovering the Red Planet's secret past.

That's ahead on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Happening this morning, the family of a 5-year-old girl in Chicago who died after she went into a coma at the dentist's office is considering a lawsuit. Diamond Brownbridge is the little girl's name. She went to Little Angel Dental last weekend for fillings and caps. Relatives say she got a triple dose of sedatives. No response from the dental office yet.

Hewlett-Packard executives testify before a House panel in just a few hours. Lawmakers are probing HP's investigation of its own board. The company's private eyes posed as board members, employees, and reporters to try to get personal data on suspected leakers. And new images this morning from the rover Opportunity showing Mars' Victoria Crater. Scientists want to know if the crater's rocks were formed in shallow lakes, and that would suggest that Mars could have once supported life.

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

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

Thanks for being with us.

At the White House last night, sea bass, soup and salad, flowers on the table, an intimate gathering of friends. Well, not quite. President Bush hosted the leaders of Pakistan and Afghanistan last night. The two have been quarrelling over the war on terrorism.

CNN's Sumi Das live from Washington with more.

Good morning, Sumi.

SUMI DAS, CNN CORRESPONDENT: Good morning, Miles.

That dinner menu certainly sounded good, but the food may have been upstaged by the top issue on President Bush's political agenda, easing the tensions between two of his key allies.

(BEGIN VIDEOTAPE)

DAS (voice over): In the war on terror, they are two men President Bush needs on his side, the leaders of Pakistan and Afghanistan. After a rare meeting of all three presidents at the White House Wednesday evening, Mr. Bush praised them both, calling them personal friends.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: They are strong leaders who have an understanding of the world in which we live. They understand that the forces of moderation are being challenged by extremists and radicals.

DAS: But earlier this week, Musharraf and Karzai accused each other of not doing enough to track down terrorists.

PRES. PERVEZ MUSHARRAF, PAKISTAN: He knows everything, but he's purposely denying, turning a blind eye like an ostrich.

PRES. HAMID KARZAI, AFGHANISTAN: If on the one hand Afghan people are asking for more schools, better education, more health, they cannot be the ones to destroy themselves. Somebody else must be doing it, and that somebody else is the sanctuary in Pakistan to terror.

DAS: Terrorism experts say combating extremism is a difficult task for both countries.

UNIDENTIFIED MALE: Perhaps the greatest relevance to us is that neither leader controls all of his territory. DAS: A senior administration official says the air was cleared between Musharraf and Karzai during the White House meeting in a cordial way. And the three presidents did talk about one issue that binds them, the hunt for Osama bin Laden.

(END VIDEOTAPE)

DAS: The senior administration official also said the meeting was productive; however, there were no breakthroughs -- Miles.

M. O'BRIEN: Sumi Das from Washington.

Thank you -- Soledad.

S. O'BRIEN: Today the Senate's expected to pass a detainee bill which is backed by President Bush. The measure would give the Bush administration the authority to interrogate and prosecute terror suspects. Mr. Bush says the legislation will strengthen national security. The House passed the bill yesterday.

M. O'BRIEN: Well, the plan was to build a large police academy in Iraq. And now that plan may be coming down, quite literally. Reports this morning the U.S.-funded building is so poorly built it may be a hazard to the trainees' health and it may need to be torn down.

CNN's Arwa Damon live from Baghdad with more -- Arwa.

DAMON: Good morning, Miles.

And I actually just got off the phone with the deputy commander for the Gulf region, for the U.S. Army Corps of Engineers, Colonel Michael Herman (ph), and this is what he explained to me.

Basically, yes, when the buildings were constructed the plumbing was not done properly, to put it simply. He said there were no factual errors in that article by "The Washington Post." There is sewage that is quite literally coming down through some of the rooms. But here's how he explained it.

The room that most of the sewage is pouring into is actually being used as a study room. This is not jeopardizing the health of the cadets that are there. They're still being trained, they're still able to attend classes. This is not a problem that's occurring in their barracks.

Plus, he also said that the U.S. Army Corps of Engineers was actually aware of this back in June and began the efforts to reconstruct and tear down these latrines and rebuild them. And he also added that this was actually being carried out by the contractors and the subcontractors at no cost to the U.S. government.

Now, all that being said, he did say that this was a gross error, and also that the quality control steps that they have in place, basically the contractor's responsible for overseeing the process as these buildings are being constructed. The U.S. Army Corps of Engineers is responsible for quality assurance.

Now, that obviously -- those two quality steps have failed, and the Corps of Engineers has launched their own investigation -- Miles.

M. O'BRIEN: So, Arwa, will they have to tear down this building or can it be fixed?

DAMON: Well, no, what he said to me is basically it can be fixed. And, in fact, there's eight main structures. And four of the eight structures, the main buildings, have already been fixed.

Like I said, they've been -- they started working on this back in June when they first realized the problem. And he said to me that the rest of the buildings were expected to be done by October 15th. And again, reemphasizing that this was not jeopardizing the health of the cadets and was not jeopardizing their training process -- Miles.

M. O'BRIEN: Arwa Damon in Baghdad.

Thank you -- Soledad.

S. O'BRIEN: In Colorado, just miles from the Columbine school shootings -- you remember those -- another tragedy to tell you about. Classes are canceled for the rest of the week at the Platte Canyon High School in Bailey after a gunman took hostages there on Wednesday. It ended with the shooting death of 16-year-old Emily Keyes.

Jeremy Hubbard from our affiliate KDVR has our report.

(BEGIN VIDEOTAPE)

JEREMY HUBBARD, REPORTER, KDVR: It happened just a few miles away from the scene of the deadliest school shooting in U.S. history, and some of the pictures are eerily similar to Columbine. A gunman enters a Colorado high school and within hours he is dead, and so is a young hostage.

The shooting happening at Platte Valley High School in Bailey, Colorado, some 35 miles southwest of Denver. Police say a man fired shots and took six female students hostage inside an English classroom on Wednesday.

After hours of negotiation, four of the hostages were released but then talkings ended. The SWAT team moved in, and that, police say, is when the gunman shot one of the hostages and then turned the gun on himself, killing himself.

The sheriff here in Park County, Colorado, says the town is grieving. This is one of those towns where everyone knows everyone.

Meantime, classes have been canceled at the school for the rest of the week while authorities try to figure out what happened.

Jeremy Hubbard in Bailey, Colorado, for CNN.

(END VIDEOTAPE) S. O'BRIEN: The sheriff in charge of diffusing the hostage situation said he isn't second-guessing his decision to send officers into the school. Meanwhile, crisis counselors have been made available to students and parents -- Miles.

M. O'BRIEN: Still to come on the program, news from the Paris auto show. America's biggest car company in talks to join up with Europe and Japan. That's all about survival. And some would say politicals is a crap shoot. Well, there's one candidate in New Hampshire who is glad that luck was a lady to him.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Here's a look at some of the stories that CNN correspondents around the world are following for you today.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN CORRESPONDENT: I'm Dan Rivers in Bangkok, where I'll be reporting on the country's new airport that has cost a staggering $4 billion. It claims to have the world's biggest passenger terminal building and the tallest air traffic control tower ever built. But the man who's taken such a close interest in overseeing the project, Prime Minister Thaksin Shinawatra, won't be here to celebrate. He was ousted in last week's coup.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN BEIRUT BUREAU CHIEF: I'm Brent Sadler in Beirut, where the aftershocks of the Hezbollah-Israeli war have triggered a fierce political backlash here, where the U.S.-backed government of Prime Minister Fouad Siniora is under fire from Hezbollah and the Syrian-backed allies, as both the United States and Hezbollah's staunch ally, Iran, compete for dominance in the Middle East.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT: I'm Ryan Chilcote in Moscow.

Russia is reburying the remains of Empress Maria Feodorovna today in the royal family's tomb. The mother of Russia's last czar, Nicholas II, fled the country in 1919 after her son was forced out of power and executed by the Bolsheviks. Before she died in exile in Denmark, she asked that she be buried by her family back in Russia. Almost eight decades later, she's getting her wish.

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(BEGIN VIDEOTAPE) JIM BOULDEN, CNN CORRESPONDENT: This is Jim Boulden at the Paris motor show.

Well, these events are usually about fancy new cars and concept vehicles that will never make it on the road. But this one's different. This one's all about an alliance.

Will General Mothers make an alliance with Nissan and Renault? Well, Renault says the best way to keep Toyota from becoming the world's number one car maker by 2010 is for the three to tie up.

Some at General Motors don't agree. Indeed, Rick Wagoner, the CEO of GM, said today that GM is on the road to recovery already and it will thrive even without an alliance.

(END VIDEOTAPE)

S. O'BRIEN: For more on these stories or any of our top stories, go right to our Web site at CNN.com.

Still to come on AMERICAN MORNING, a tragedy at a Colorado high school to tell you about. The gunman's identity and motive are still a mystery.

We'll have the latest on that story straight ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Happening this morning, Hewlett-Packard executives will testify before a House panel just a few hours from now. Lawmakers probing HP's investigation of its own board. The company's private eyes posed as board members, employees and reporters to get personal data on suspected leakers.

More bloodshed in Baghdad this morning. A series of bombings across the city has killed at least two Iraqi soldiers. Meanwhile, Baghdad police finding 60 dead bodies in just the past 24 hours, all of them showing signs of torture.

And in Bailey, Colorado, this morning police are searching for a motive in a school shooting that left one student dead. Sixteen-year- old Emily Keyes killed yesterday after a gunman took several students hostage. Police say the gunman, who hasn't been identified publicly yet, killed himself -- Soledad.

S. O'BRIEN: Some political headlines for you this morning.

A scandal rocking the campaign of New York State attorney general -- general candidate Jeanine Pirro. She's being investigated for allegedly planning to spy on her husband who she suspected of having an affair. Investigators are looking into a conversation she had with former New York police commissioner Bernard Kerik. And in that conversation she reportedly discussed secretly recording her husband's conversations. Delaware Congressman Mike Castle is home from the hospital this morning, five days after he suffered a minor stroke. The 67-year-old Republican had been hospitalized since Saturday. And he said in a statement that he's happy to be home and that he wasn't a very good hospital patient.

New Hampshire, famous for its political independence, that free spirit was showing this week when officials decided a statehouse stalemate, not with a runoff, but with a roll of the dice.

Heather Hamel of our affiliate WMUR has our story.

(BEGIN VIDEOTAPE)

BILL GARDINER, NEW HAMPSHIRE SECRETARY OF STATE: The container will be turned over and the first one out will be declared the winner. And that -- that's the way we do it in New Hampshire. And that's the way we did it yesterday.

HEATHER HAMEL, REPORTER, WMUR (voice over): Secretary of State Bill Gardiner says it's a tie-breaking tradition dating back to at least the 1930s and possibly even longer. And for Frank Emiro, it worked in his favor.

FRANK EMIRO (R), HOUSE CANDIDATE: When he said, "We do it a lot," I was saying, "I don't know what a lot is." And then when they did it, I thought it was kind of comical. It looked like an "I Dream of Jeannie" bottle.

HAMEL: Frank Emiro had asked for a recount after he lost the race for District 3 state representative to 21-year-old Matt Henry. The vote was 350 to 349. But the recount didn't name him the winner. Instead, it came out 350 to 350, and the tie-breaking bottle had to come into play.

UNIDENTIFIED MALE: Each candidate will be given the opportunity to pick one of these numbered balls.

HAMEL: Frank picked eight. Matt picked one.

MATT HENRY, LOST TIE-BREAKER: It's a very interesting way of deciding an election, though. I don't know how democratic it is, but the law is the law and you've got to go by that.

EMIRO: When he said, "Number eight," whoa. But I couldn't yell. You know?

So I had to wait after I got outside the statehouse. I went outside and went, "Yahoo!"

HAMEL: The drawing allowed Emiro to secure the ninth Republican spot on the ballot and a chance at the general election. But this Keene State College student isn't discouraged and may make another run for office.

HENRY: I can't tell two years into the future, but it's a definite possibility. It's an aspiration I do have.

(END VIDEOTAPE)

S. O'BRIEN: For your daily dose of political news, CNN.com is the place to do. Just head to CNN.com/ticker, get a wrap of all the day's political headlines, plus up-to-the-minute political happenings from coast to coast -- Miles.

M. O'BRIEN: Up next, Andy, "Minding Your Business."

Andy, good morning.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Good morning, Miles.

7-Eleven gives Citgo the boot. Is it business as usual or all about politicals? We'll explore that.

M. O'BRIEN: All right. Thank you, Andy.

(COMMERCIAL BREAK)

M. O'BRIEN: 7-Eleven dumps Citgo but says it has nothing to do with that little diablo thing at the United Nations.

Andy Serwer is here to see if that passes the smell test. It smells like a little sulfur to me.

SERWER: Yes. Well, you know, it's one of those the timing is a little curious here, isn't it? Although, as you said, 7-Eleven saying it was a business decision. I think this smacks of politics.

Did Hugo Chavez, Venezuela's president, cause 7-Eleven to end its deal with Citgo? This is two decades Citgo has been supplying gasoline to 7-Eleven convenience stores. Yesterday the company came out and said that as of September 30th it was switching to its own branded gasoline, and that -- but it did say it had no connection to anything that happened at the U.N. just several days ago.

M. O'BRIEN: Hopefully it doesn't have the consistency of a Slurpee.

(CROSSTALK)

SERWER: Nothing about Slurpees, other liquids at 7-Eleven in here.

M. O'BRIEN: yes.

SERWER: The company also said -- warning Americans and American businesses not to boycott Citgo, pointing out that there are 4,000 U.S. employees working for the Venezuelan oil company here, and 14,000 gas stations. Well, if they're saying that, then why are they doing that? I guess you could ask them.

And it will actually take them a long time to remove the Citgo canopies and logos from the convenience stores. It's going to take them over a year to do that. So it's not an easy process.

S. O'BRIEN: Why does it take over a year?

SERWER: I guess they just have to go there and unscrew the bolts.

S. O'BRIEN: Yes?

SERWER: All of -- 2,100 stores.

M. O'BRIEN: Just one guy with...

(CROSSTALK)

SERWER: Yes. There's a guy with a special tool, Soledad. He goes around the country.

S. O'BRIEN: I stand corrected.

SERWER: No, that's a very good question. And it's unclear.

S. O'BRIEN: A year to take down the signs?

SERWER: It won't be completed until 2008 in some cases.

M. O'BRIEN: Well, you could say this is all about P.R. And if the signage is still indicating Citgo, doesn't that kind of undermine the goal here?

SERWER: Well -- or it suggests that maybe they did just change...

M. O'BRIEN: Maybe it wasn't that.

SERWER: ... to their brand of gasoline. They don't really care whether they're, you know, linked to Citgo or not.

But, you know, the Venezuelan oil company in Venezuela is such an important supplier of petroleum to the United States. In fact, it's one of the top four suppliers of crude oil to the U.S.

So we have this very interesting relationship, shall we say, with Hugo Chavez. And then it's impacted by how high the price of oil is as well. And when it goes down, he has a little less clout, I would suggest.

M. O'BRIEN: I would suggest you're right. Absolutely.

All right. What's up next, Andy?

SERWER: Well, guess what? We're going to be talking about Hewlett-Packard again...

M. O'BRIEN: Oh, boy.

SERWER: ... and the testimony begins today on Capitol Hill. M. O'BRIEN: You've got a front row seat for that one, don't you?

SERWER: Well, I've got to get down there, I guess.

M. O'BRIEN: Yes.

SERWER: But, you know, we'll try.

M. O'BRIEN: All right. Thank you, Andy.

S. O'BRIEN: Time to get a check of the forecast. Chad Myers has that at the CNN Center.

Good morning again. What are you looking at?

CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.

(WEATHER REPORT)

MYERS: The next hour of AMERICAN MORNING starts right now.

M. O'BRIEN: The polls show the voters are restless, so the GOP not taking any chances. The president heads to the Hill today to talk political turkey.

S. O'BRIEN: Most Iraqis say they want the U.S. out. A new poll is raising more questions about America's roll in Iraq.

M. O'BRIEN: Bill Clinton finds an unlikely ally. Rudy Giuliani says it's not fair to blame Clinton for 9/11.

S. O'BRIEN: In Colorado, a community in shock after a student killed in a hostage crisis.

M. O'BRIEN: And a story every parent should hear. If your child starts acting differently, it could be drugs and denial.

It's not an option on this AMERICAN MORNING.

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

S. O'BRIEN: And I'm Soledad O'Brien.

President Bush is headed to Capitol Hill just in the next hour. He's going to be meeting with Senate Republicans.

Let's get right to Kathleen Koch, who's at the White House, Andrea Koppel, who's on Capitol Hill.

Kathleen, let's start with you.

Good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Soledad.

And this is the second time in just two weeks that President Bush has headed to Capitol Hill. It was two weeks ago that he was there to give basically a pep talk to members of the House.

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