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American Morning

U.S. Soldier Missing; Deadly October; Iraq Strategy; Congressional Smackdown

Aired October 24, 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, Tuesday, October 24. I'm Miles O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien.

Our top story this morning, an urgent search under way right now for a soldier who is missing in Iraq and there are fears this morning that he may have been kidnapped.

M. O'BRIEN: Some other headlines we're following this morning, straight to the wall we go.

President Bush meets with senior Cabinet members today to discuss Iraq policy. The White House abandoning the catch phrase 'stay the course,' now stressing it is adapting strategy as the enemy changes tactics.

More closed door testimony in the Mark Foley e-mail scandal. New York Republican Tom Reynolds slated to appear before the Ethics Committee. Yesterday, the committee grilled House Speaker Dennis Hastert's top aide for six hours.

S. O'BRIEN: This morning, China's foreign ministry is saying that North Korea will not conduct a second nuclear test. That's what a Chinese diplomat was told during talks in Pyongyang last week.

And Hurricane Paul aiming at Mexico this morning, the storm has lost a little bit of strength. Winds are at about 85 miles an hour this morning.

Let's get right to Chad Myers. He's at the CNN Weather Center.

Cold here, Chad, cold there, too, right?

CHAD MYERS, CNN METEOROLOGIST: Yes, good morning.

(WEATHER REPORT)

Back to you.

M. O'BRIEN: All right, it's sure passed the sprinkler season for sure.

MYERS: Absolutely.

M. O'BRIEN: Thank you very much, Chad. A search is under way at this hour in Iraq, the U.S. military looking for one of its own who went missing in Baghdad and there are concerns he may have been kidnapped. The soldier has not been publicly identified, but we do know this, he is an Iraqi-American who worked as a translator.

CNN's Arwa Damon live in Baghdad with more, -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Good morning, Miles.

And the search is still ongoing. The soldier is believed to have gone missing at some point on Monday. U.S. forces immediately launched a search into an area that they received intelligence from, intelligence that he may have been located there. The search began in the evening and lasted well into the night.

They went through this neighborhood of Karada, in central Baghdad, going house to house looking for this missing soldier. The search also led them to the doorstep of Al-Furat television. That is the TV station that is owned by one of Iraq's main Shia political parties, in fact the country's most powerful political party, the Supreme Council for Islamic Revolution in Iraq. It is headed by Abdul Aziz al-Hakim.

In fact, his chief of staff showed up at the TV station, according to the U.S. military. He actually allowed them indoors. They searched the premises and confiscated the weapons of the guards that were located there. This, in term, prompted Iraq's National Security Advisor, Muwaffaq al-Rubaie, to take the very risky trip down to the TV station at 11:30 local time here last night to demand answers from the U.S. military and also to request that the weapons be returned. The U.S. military, we are hearing, has returned those weapons to the TV station.

And right now they are still looking for one of their own, looking for this soldier that has gone missing. But last night's incidents, especially at Al-Furat television, highlighting the, at times, very sensitive relationship between the U.S. military and the Iraqi government here -- Miles.

M. O'BRIEN: What do we know, Arwa, about the circumstances of that soldier's disappearance? When was he seen last, for example?

DAMON: We actually know very little, Miles. The U.S. military is very reluctant to release specific details that surround this soldier and the fact that he went missing. Initial suspicions were that he may have been kidnapped. Right now, quite frankly, they are just not sure. They do not want to release any information. In fact, the U.S. military still has not released information, for example, the fact that he is an Iraqi-American or his name, due to operational security -- Miles.

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

While the search for the soldier continues, the Pentagon and the White House looking for a new strategy to turn the tide of endless violence in Iraq. In about an hour, we expect to hear from a top U.S. general and the U.S. ambassador to Iraq. They're expected to shed some light on what lies ahead. The news conference comes at the end of the deadliest month in two years in Iraq.

Barbara Starr with more.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): With at least 86 Americans killed so far this month in Iraq, it's the worst month for the military in a year.

DONALD RUMSFELD, DEFENSE SECRETARY: And there's been a pattern that incidents have gone up during Ramadan.

STARR: Generals John Abizaid and George Casey, the two top commanders, now believe sending in large numbers of additional U.S. troops might only provide more targets and not improve security, according to military sources. Instead, they are focused on getting Iraqis to take more control.

The White House may not be talking timetables, but Defense Secretary Donald Rumsfeld is doing just that.

RUMSFELD: The question is, Wolf, when do you think that might happen? When do you think the Iraqis might be ready to do that, to assume those responsibilities?

STARR: U.S. commanders say they asked for six Iraqi Army battalions to fight death squads in Baghdad. Only two have shown up so far, leaving the U.S. short of 2,000 badly needed Iraqi troops in the city. The question is whether Prime Minister Nuri al-Maliki can stand up to the militias and assure the U.S. of progress.

RUMSFELD: I think people have to be realistic. And our hope is that we can assist them, the coalition can assist them in assuming responsibility for their country, as I said the other day, sooner rather than later.

STARR (on camera): One indication of just how concerned top officials are right now, General George Casey, the senior commander in Iraq, and the U.S. Ambassador, Zalmay Khalilzad, will hold a rare joint press conference in Baghdad to discuss the latest security situation.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

M. O'BRIEN: And we'll bring you that news conference live, 7:00 a.m. Eastern, a little less than an hour from now -- Soledad.

S. O'BRIEN: Well 'stay the course' is a phrase we've heard from President Bush over and over again when he's talking about his Iraq strategy. Take a listen.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And what the American people need to know is what our allies know, I am determined to 'stay the course.'

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

BUSH: They know that a free and peaceful Iraq in their midst would damage their cause. And we will 'stay the course.'

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

BUSH: We will 'stay the course.'

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

BUSH: And my message today to those in Iraq is we'll 'stay the course.'

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

BUSH: We will 'stay the course.' We will complete the job in Iraq.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

BUSH: 'Stay the course' means keep doing what you're doing. My attitude is, don't do what you're doing if it's not working, change. 'Stay the course' also means don't leave before the job is done.

(END VIDEO CLIP)

S. O'BRIEN: Well now the White House is saying that 'stay the course' is history.

CNN's Sumi Das is at the White House for us this morning.

Good morning to you, -- Sumi.

SUMI DAS, CNN CORRESPONDENT: Good morning to you, Soledad.

Well misinterpretation, that's the reason the White House says it's had a change of heart on 'stay the course.' But administration officials say they are still committed to remaining in Iraq, despite the daily violence.

(BEGIN VIDEOTAPE)

DAS (voice-over): A car bomb detonated in eastern Baghdad Monday, killing one Iraqi and wounding more than a dozen others, one more bloody attack in a month that's already the deadliest this year for U.S. forces. This somber record comes as mid-term elections near. The GOP is fighting to hold on to its congressional majority and the White House is scraping a phrase many considered a symbol of its Iraq strategy, 'stay the course.'

TONY SNOW, WHITE HOUSE PRESS SECRETARY: I mean a lot of the critics to say well here's an administration that's just embarked upon a policy, not looking at what the situation is, when in fact it's just the opposite.

DAS: Bush administration officials say they are continually adjusting tactics to try and curb violence in Iraq.

RUMSFELD: It's a matter that is being discussed, as I said, between U.S. Ambassador Zal Khalilzad and General Casey with the Iraqi government. And what they are doing is just having a discussion about how they see the way ahead over the rest of this year and next year.

DAS: Critics say the current Iraq strategy won't quell the sectarian strife.

FRED KAGAN, AMERICAN ENTERPRISE INSTITUTE: The U.S. government has never made a priority of establishing security throughout Iraq. It has made a priority of training up Iraqi soldiers and then planning to leave as quickly as possible. As long as we have that strategy, we are not going to be able to help the Iraqis get security back into their country in any short period of time.

(END VIDEOTAPE)

DAS: White House Press Secretary Tony Snow says the decision to abandon the expression 'stay the course' does not signal any dramatic shifts in Iraq policy -- Soledad.

S. O'BRIEN: Sumi Das for us this morning in Washington.

Thanks, Sumi -- Miles.

M. O'BRIEN: Two weeks until the mid-term elections and the latest CNN polls just out this morning show Americans have soured on both political parties. Only 38 percent think Democrats have a clear plan for solving the country's problems, 31 percent believe Republicans do. On the issue of ethical standards, 49 percent believe Democrats have high standards, 46 percent believe Republicans do. As for whether each party can protect Americans, an even split here, 59 percent believe Republicans and Democrats can do the jobs. The polls were conducted for CNN by the Opinion Research Corporation.

With the war in Iraq providing so much bad news for Republicans two weeks before the election, the president is trying to push more focus on the economy. In an interview on CNBC yesterday, he talked about the strong economy, low unemployment and those GOP tax cuts. (BEGIN VIDEO CLIP)

BUSH: I believe we'll hold the House and the Senate. No question a strong economy is going to help our candidates, primarily because they have got something to run on. They can say our economy is good because I voted for tax relief.

(END VIDEO CLIP)

M. O'BRIEN: The president appeared on CNBC's "Closing Bell with Maria Bartiromo."

Those close numbers are translating into some fierce contests all across the country this morning. Some races are getting not just dirty, but downright personal.

CNN's Candy Crowley shows us how a Senate race in Tennessee is turning into the political equivalent of a food fight.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): You don't need polls to tell you when a race is close. In Memphis, a parking lot will do.

BOB CORKER (R), TENN. SENATE CANDIDATE: It's a true sign of desperation that you would pull your bus up when I'm having a press conference.

REP. HAROLD FORD JR. (D), TENN. SENATE CANDIDATE: No, sir, I can never find you anywhere in the state.

CORKER: I'm out there. And I admit I was in Jackson last night. I saw your...

CROWLEY: Welcome to the Tennessee Senate smackdown. Screen left, Democrat Harold Ford, who tried to crash a press conference held by, screen right, Republican Bob Corker.

CORKER: Matter of fact, this is my press conference, not yours, OK.

FORD: But I'd love to hear you talk about Iraq though.

CROWLEY: They don't like each other much, but mostly they are radiating the heat of a pivotal race. There are no last words, just the next ones.

FORD: What kind of a man attacks another man's family in the face of a campaign? I'll tell you the kind of man, his name is Bob Corker.

CORKER: I've never said a negative word about his family. He came in, in almost a juvenile fashion, and crashed a press conference on Friday. It's been called the Memphis Meltdown. And he just got through saying a load of non-truth. CROWLEY: This is nastier than most because it's not just about winning this race, it's about who will control the U.S. Senate. Republicans are trying to build a firewall to hold on to their majority status. If you weed out four Republican seats that look ready to fall, there are three must-wins for Republicans, Virginia, Missouri and Tennessee. Money is pouring into this state like a Niagara Falls of the South, some of it in ads, including this beaut.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I met Harold at the Playboy party.

UNIDENTIFIED FEMALE: I'd love to pay higher marriage taxes.

UNIDENTIFIED MALE: Canada can take care of North Korea. They're not busy.

UNIDENTIFIED MALE: So he took money from porn movie producers. I mean, who hasn't?

(END VIDEO CLIP)

CROWLEY: Even in this brawl, that's rough.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The Republican National Committee is responsible for the content of this advertising.

UNIDENTIFIED FEMALE: Harold, call me.

(END VIDEO CLIP)

FORD: And I think my opponent has gotten very nervous and skittish. And this isn't the first ad that's been in the gutter.

CROWLEY: Not that Ford hasn't thrown some punches on the air, but even Corker says his party's ad is over the top.

CORKER: We think the ad is tacky. We think it's not senatorial. We think it has no place in this race.

CROWLEY: The ad is still playing. Did we mention this race is close?

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

M. O'BRIEN: All week long CNN is looking at "AMERICA'S BROKEN GOVERNMENT." Tonight at 8:00 Eastern, "Two Left Feet," we'll look at how Democrats are trying to overcome years of losing. Once again, 8:00 Eastern right here on CNN -- Soledad.

S. O'BRIEN: Well Congressman Tom Reynolds is expected to testify today before the House Ethics Committee that's investigating the Mark Foley scandal. Now Reynolds has said he was told last spring about the e-mails that Foley sent to teenage pages and he says he passed that complaint along to House Speaker Dennis Hastert. The committee questioned Hastert's top aide yesterday, and Speaker Hastert is expected to testify later this week.

Ahead this morning, a search is under way for a missing U.S. soldier in Iraq, more than 1,600 pounds of ground beef are being recalled due to possible E. coli contamination and there's more bad news for Sony, as that company widens its recall of laptop batteries that could catch fire, weather and more news ahead on AMERICAN MORNING. We're back in just a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back.

Here's a look at some of the top stories we're following for you this morning.

In Iraq, right now there's a massive search under way for a missing U.S. soldier. There are growing fears this morning that he's been kidnapped.

And also in Iraq, the top U.S. general there is holding a major news conference about the war. He'll talk about it in less than an hour and we'll take it live for you when it happens.

Quarter past the hour, if you're just about to head out the door, let's first check in with Chad Myers at the CNN Weather Center. He's got a look at the traveler's forecast for us.

Good morning again, -- Chad.

MYERS: Good morning, Soledad.

(WEATHER REPORT)

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

Happening in America this morning.

In Alabama, a police officer shot to death, now the search is on for her killers. The officer was checking out a suspicious truck yesterday in Fairfield, that's just outside of Birmingham. Fellow officers say two men inside the beige Ford pickup shot her as she stepped out of her cruiser, another officer was wounded.

In Pennsylvania, a coal miner dead after an underground explosion. The father of four was laying dynamite in a mine yesterday. He died after apparently detonating a stick of dynamite in a tunnel that was full of methane gas. Four other miners made it back safe above ground.

In Missouri, some unwelcome visitors aboard the Mississippi Queen Riverboat, a team from the Centers for Disease Control there to monitor food and hygiene practices. This after three dozen passengers developed flu-like symptoms during the cruise. Health officials believe passengers probably got sick from a virus. They are awaiting test results.

A Connecticut company is recalling over 1,600 pounds of ground beef products that may be contaminated with E. coli. Omaha Beef Company in Danbury, Connecticut, recalled its 10-pound boxes of hamburger patties and 5 and 10-pound bags of hamburger. They were distributed to restaurants in Connecticut and parts of New York State. No illnesses have been reported, however.

In Atlanta, guilty pleas from two men accused of plotting to steal trade secrets from the Coca-Cola Company. A former secretary at Coke is scheduled to stand trial next month. The alleged plotters were arrested after Coca-Cola was warned by Pepsi. The two men could each face up to 10 years in prison when they are sentenced in January.

And in Minnesota, a farmer showed off the largest pumpkin ever grown in the state. Yes, it's that time of year, folks. This one weighs 213 pounds.

S. O'BRIEN: No, 1,213 pounds.

M. O'BRIEN: You're right, I missed...

S. O'BRIEN: That's a big one.

M. O'BRIEN: ... a whole word there, 1,213. You're right, that would be not much of a...

S. O'BRIEN: I'm trying to guess how big that was.

M. O'BRIEN: The biggest pumpkin ever was, though, 1,500 pounds. It was grown in, of all places, Rhode Island. That's the smallest state with the biggest pumpkin. Seeds will be taken from the Minnesota pumpkin. And who knows how big a pumpkin those might produce next year.

S. O'BRIEN: You couldn't carve that one, look at it, it's kind of collapsed and flat.

M. O'BRIEN: No, you need a chainsaw. You could tie it up in a Gordian Knot trying to carve that one, so to speak.

S. O'BRIEN: Keeping on our spooky Halloween theme,...

M. O'BRIEN: Yes.

S. O'BRIEN: ... there is proof once again that you just can't kill the boogieman. The creepy Michael Myers is making a comeback. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: He came home.

(END VIDEO CLIP) S. O'BRIEN: Aren't you scared? The original "Halloween," '78 movie that set the standard for the slasher films, hits the big screen again on October 30 and 31 in selected cities, not everywhere. The John Carpenter classic, remember it made Jamie Lee Curtis a big star, also spawned seven not-so-great follow-ups.

M. O'BRIEN: Get away from the car. Get away from that car.

S. O'BRIEN: Nasty. Go, go, get out of the car.

M. O'BRIEN: Can't they see that car there?

S. O'BRIEN: Anyway, next year rock madman Rob Zombie is going to change that. He's going to direct "Halloween 9."

M. O'BRIEN: You just can't -- there's no end in sight.

S. O'BRIEN: You can't...

M. O'BRIEN: There's no end in sight for that.

S. O'BRIEN: ... make it enough times.

M. O'BRIEN: Yes, very scary this morning.

S. O'BRIEN: Yes. Yes.

Some of the stories that we're watching for you this morning as well, President Bush says the White House is no longer going to use the phrase 'stay the course' to describe the policy in Iraq. And Sony is recalling 340,000 more laptop batteries that could catch fire. Got more news for you in a moment. Back in a second.

(COMMERCIAL BREAK)

M. O'BRIEN: Some of the top stories we're following for you, growing violence in Iraq prompts a change at the White House. President Bush no longer using that phrase 'stay the course' to describe the American military mission there.

In Baghdad, the top U.S. general and the U.S. ambassador slated for a major news conference about the war. We'll have that in about 40 minutes time, 7:00 Eastern -- Soledad.

S. O'BRIEN: Well Sony is voluntarily recalling 340,000 rechargeable lithium-ion batteries used in laptop computers. The reason: the risk that they'll overheat and catch fire. The batteries are used in Fujitsu, Gateway, Sony and Toshiba America laptops. And you want to contact your computer company to find out if you're eligible for a free battery. The estimated cost of the recall is more than $425 million. That's going to hit the bottom line.

Speaking of a nice bottom line, though, we're only 900 points away from Dow 13,000.

Andy Serwer is "Minding Your Business." That's a pretty long way away.

ANDY SERWER, "FORTUNE" MAGAZINE: May be getting ahead of ourselves a little bit there, -- Soledad.

S. O'BRIEN: A little bit.

Good morning.

SERWER: But the way, the Dow has been going -- good morning -- it's just -- it's fathomable.

S. O'BRIEN: On fire.

SERWER: It really is. And yesterday, Soledad, the Dow set another record, up 114, 12,116, optimism over corporate earnings and lower oil prices. And I think that, in particular, has really gotten investors excited, because OPEC cut back on production and yet oil prices continue to drop. Sort of like investors saying is that all you've got to OPEC. In other words, companies and countries still cheating on those quotas, meaning that the price continues to drop.

The 10th record for the Dow Jones industrials in 15 sessions, September and October, the Dow was up 6 percent. So you can just see that we continue to streak on Wall Street.

A couple stocks in focus want to tell you about. First of all, General Motors hitting a 52-week high, this stock has gone from $18 just $35. Look at that. And we've talked about the possible turnaround. The other thing is that Ford posted a $5.8 billion loss, so GM is looking pretty good in comparison to Ford.

Another stock we want to tell you about, Google, this one setting a new all-time high, $480 a share.

S. O'BRIEN: Why didn't we buy more of this?

SERWER: No, I know, we keep asking ourselves.

S. O'BRIEN: I didn't buy any of this.

SERWER: Maybe we could still do it. A stock market value now of $150 billion, close to that, and, which means that it's bigger than IBM, bigger than IBM, of course it's growing much faster.

And then finally, Berkshire Hathaway, Warren Buffett's company, want to tell you about that. The stock finally closed at $100,000 a share. This is a gentleman who does not ever want to split his stock. And you can see that is another stock that just continues to move up, but then again, most of them are. You could just throw a dart at the dart board and you'd probably be pretty -- sitting pretty well right now -- Soledad.

S. O'BRIEN: At least for now.

All right, Andy, thanks. SERWER: Thanks, -- Soledad.

S. O'BRIEN: What do you have coming up?

SERWER: We're going to talk a little bit more about that battery recall, some interesting developments at Sony to tell you about.

S. O'BRIEN: Yes, kind of ugly for them there.

All right, Andy, thank you.

That's ahead.

Some of the stories we're following -- hello, there we are. Some of the stories we're following for you this morning, the search is on for a U.S. soldier who is missing in Iraq and the computer code for some of Diebold's electronic voting machines may have been leaked. More on those stories ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Morning. Welcome, everybody. It is Tuesday, October 24. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien. Thanks for being with us.

Let's take a look at the news wall, some of the stories we're following for you this morning.

An urgent search under way, as we speak, for a missing U.S. soldier in Iraq. There are fears he may have been kidnapped.

More closed door testimony in the Mark Foley e-mail scandal. New York Republican Tom Reynolds slated to appear before the Ethics Committee. Yesterday, the committee grilled House Speaker Dennis Hastert's top aide for six hours.

S. O'BRIEN: This morning, China's foreign ministry says that North Korea will not conduct a second nuclear test. That is what a Chinese diplomat was told during talks in Pyongyang last week.

And Hurricane Paul aiming at Mexico this morning, the storm has lost a little bit of strength. The winds are about 85 miles an hour.

Chad Myers at the CNN Center, he's watching Paul, also watching some lake-effect snow this morning.

Kind of early for that, isn't it, -- Chad?

MYERS: It sure is.

(WEATHER REPORT)

S. O'BRIEN: Chad, thank you.

MYERS: You're welcome. S. O'BRIEN: Some terrible news to tell you out of Iraq this morning, the military is announcing the death of two Marines killed in Iraq. It adds to the highest monthly death toll in almost two years.

CNN's Arwa Damon is live for us in Baghdad this morning.

Arwa, good morning.

DAMON: Good morning, Soledad.

That's right. The U.S. military just put out this information in a press release saying that the two Marines died as a result of enemy action, bringing the total of U.S. troops killed here in Iraq to 89 this month. Many of these deaths are centered in the capital and around it. The capital, Baghdad, and in the volatile Al Anbar Province. Many a result of roadside bombs, which are only becoming more sophisticated and deadly, and small arms fire, which is only becoming more accurate -- Soledad.

S. O'BRIEN: Let me ask you another question, Arwa, this time about that U.S. soldier who is now missing. Any more information about him?

DAMON: Nothing that the U.S. military is putting out. That being said, though, they do not want to release too much information that they do have about where the soldier's whereabouts might be. That could jeopardize his safety.

What we do know is that the search is ongoing at this point and it was -- it started yesterday evening and went well into the hours of early morning here in the capital, Baghdad. Yesterday they were focusing on a central Baghdad neighborhood. The search there going through every single home in this area, searching some deserted buildings, even to the doorstep of the Al-Furat TV station, which is owned by the SCIRI, the Supreme Council for Islamic Revolution in Iraq. That is Iraq's most powerful Shia political party.

But as of yet, no concrete leads that the U.S. military is telling us that they have. Not putting out too much information -- Soledad.

S. O'BRIEN: Arwa, what do we know about this soldier? What can you tell us?

DAMON: What we do know -- and CNN's John Roberts was actually on this mission that happened last night -- is that he is an Iraqi- American who was a soldier with the U.S. military here. He's believed to have worked as a translator.

Initially, the troops thought that he may have been kidnapped. That was their main fear. Right now they are listing his status as "whereabouts unknown." And that is pretty much all the detail that the U.S. military is willing to release to us right now, again, because they do not want to jeopardize his safety.

S. O'BRIEN: Arwa Damon is in Baghdad for us this morning. Arwa, thanks for the update.

We're going to obviously -- going to continue to monitor that story both from here and in Baghdad, as well.

And you'll want to stay with us for a special event from Baghdad. Top American military and civilian leaders in Iraq may have an announcement about new U.S. war strategy. We're expecting to hear from them in the next half hour or so. We're going to carry it for you live when it happens at 7:00 a.m. Eastern Time right here on CNN -- Miles.

M. O'BRIEN: "Stay the course." For years, President Bush has used the phrase over and over again when talking about his Iraq strategy. Now the White House is changing its rhetorical course.

CNN's Sumi Das in Washington this morning with more -- Sumi.

DAS: Good morning, Miles.

Well, it gave the wrong impression. That's why the White House says it had a reverse of course on "stay the course," but administration officials say that they remain committed to staying in Iraq, despite the daily violence.

(BEGIN VIDEOTAPE)

DAS (voice over): A car bomb detonated in eastern Baghdad Monday, killing one Iraqi and wounding more than a dozen others. One more bloody attack in a month that's already the deadliest this year for U.S. forces.

The somber record comes as midterm elections near. The GOP is fighting to hold on to its congressional majority, and the White House is scrapping a phrase many considered a symbol of its Iraq strategy, "stay the course."

TONY SNOW, WHITE HOUSE PRESS SECRETARY: And it allowed critics to say, well, here's an administration that's embarked upon a policy and not looking what the situation is, when, in fact, it's just the opposite.

DAS: Bush administration officials say they're continually adjusting tactics to try and curb violence in Iraq.

DONALD RUMSFELD, SECRETARY OF DEFENSE: It's a matter that is being discussed, as I said, between U.S. Ambassador Zal Khalilzad and General Casey, with the Iraqi government. And what they're doing is just having a discussion about how they see the way ahead over the rest of this year and next year.

DAS: Critics say the current Iraq strategy won't quell the sectarian strife.

FRED KAGAN, AMERICAN ENTERPRISE INSTITUTE: The U.S. government has never made a priority of establishing security throughout Iraq. It has made a priority of training up Iraqi soldiers and then planning to leave as quickly as possible. As long as we have that strategy, we are not going to be able to help the Iraqis get security back into their country in any short period of time.

(END VIDEOTAPE)

DAS: So the question now is, does this decision to abandon the expression "stay the course" signal a dramatic shift in Iraq policy? Put simply, White House Press Secretary Tony Snow says, no -- Miles.

M. O'BRIEN: Sumi Das in Washington.

Thank you very much.

Two weeks until the midterm elections on this day, and the latest CNN polls just out this morning show Americans have soured on both political parties.

Only 38 percent think Democrats have a clear plan for solving the country's problems. Thirty-one percent believe Republicans do.

On the issue of ethical standards, 49 percent believe Democrats have high standards, 46 percent believe Republicans do.

As for whether each party can protect Americans, an even split here, 59 percent believe Republicans can, and 59 percent say Democrats can.

The polls were conducted for CNN by the Opinion Research Corporation.

The president is trying to shift the focus away from the war in Iraq. In an interview on CNBC yesterday, he talked about low unemployment inflation and the tax cuts he championed.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I believe we'll hold the House and the Senate. No question a strong economy is going to help our candidates, primarily because they have got something to run on. They can say, "Our economy's good because I voted for tax relief."

(END VIDEO CLIP)

M. O'BRIEN: The president also said that he doesn't believe that this election will be a referendum on his Iraq policy -- Soledad.

S. O'BRIEN: And just two weeks from midterm elections, and there's some big concerns over the reliability of electronic voting machines. There's a claim this morning that the source code for the Diebold electronic voting machine has been leaked.

A former Maryland state legislator who is also a vocal critic of electronic voting says she was given disks that contained code of some of the Diebold Company's voting machines. Now, the company says the code that was leaked is for machines that aren't currently in operation. Diebold faced criticism about the security of its voting machines during the 2004 election, as well.

And meanwhile, there are more security problems, this time for voters in Chicago. A local watchdog group has discovered that personal information of voters can be stolen from a Web site that allows voters to cast their ballots online. About 780,000 people have their social security numbers listed on the site. The city says it's now fixed the problem.

All week long CNN's taking a look at America's broken government. Tonight, at 8:00 p.m. Eastern Time, "Two Left Feet". We'll take a look at how the Democrats are trying to overcome years of losing elections. That's tonight at 8:00 p.m. Eastern -- Miles.

M. O'BRIEN: Happening "In America," in Virginia, a legal defeat for "The New York Times" means victory for this man. He's James Hatfield, the scientist once called a person in interest in the 2001 anthrax attacks. Five people died, "The Times" printed columns in which unnamed sources incriminated Hatfield. Two of those sources turned out to be FBI agents.

A judge now says the paper must turn over their names as Hatfield pursues a libel lawsuit.

A Mississippi man is suing the State Farm Insurance company. He says it deliberately hid an engineering report on Hurricane Katrina. State Farm pays out less money for flooding damage than it does for wind.

The man says State Farm also convinced him to sign a statement saying he was happy with the company's service. He said he did so out of fear he'd get no money if he refused.

In New York, a surveillance tape caught a sanitation worker breaking light bulbs on the street in front of a sushi restaurant and then he wrote a $300 littering ticket to the restaurant's owner. The Department of Sanitation said it was investigating and planned to look at that videotape. Taking a look at it now.

In California, police in Los Angeles investigating the alleged dumping of homeless people on skid row by a hospital. The LAPD says they photographed and videotaped people being dropped off by ambulances. Police call it a major break in their effort to reduce the number of people dumped in poor neighborhoods. Officials at Los Angeles Metropolitan Medical Center deny the charges.

In Illinois, the winner of this weekend's Chicago Marathon will be out of the hospital today.

Every time I see that it hurts.

As he crossed the finish line on Sunday he slipped on that banner there with the logo for the race. His head hit the ground. Robert Curiot (ph) of Kenya had at least three CAT scans in the hospital, reportedly showed some improvement. Doctors advise him to take some time off from running.

S. O'BRIEN: He had some bleeding on the brain, actually. And then apparently he's going to be fine, but he's got to take a little bit of a break.

M. O'BRIEN: Yes. Yes.

S. O'BRIEN: Gosh. He's the guy that won Boston a couple years back, too.

M. O'BRIEN: He'll be back.

S. O'BRIEN: Yes.

More on the stories we're following for you this morning.

A search under way for a U.S. soldier who's missing in Iraq.

Plus, the prime minister of Great Britain, Tony Blair, is promising that Iraqi officials -- promising Iraqi officials, rather, that British troops are going to stay in Iraq until their job is done.

Those stories and much more ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Some of the top stories we are following.

The search is on for a U.S. soldier possibly kidnapped in Iraq.

And the White House gets rid of an old slogan. President Bush no longer using the phrase "stay the course" to describe the American military mission in Iraq.

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

(BEGIN VIDEOTAPE)

ROBIN OAKLEY, CNN SR. EUROPEAN POLITICAL EDITOR: I'm Robin Oakley, reporting from London, where pressures on the British government to pull out its troops from Iraq are intensifying. Two new opinion polls Monday showed nearly two-thirds of Britons want the troops out before the end of the year. And that's despite the fact that 72 percent believe that if coalition troops do come out, Iraq will descend into civil war.

Exactly the same number say the war in Iraq is unwinnable. But in talks Monday with Iraq's deputy premier, Tony Blair assured him that Britain would hold its nerve and stay until the job was done.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: And I'm Ben Wedeman in Jerusalem.

A showdown is looming in the Palestinian territories. The president, Mahmoud Abbas, and the Hamas-led cabinet have tried and tried against to form a national unity government and failed every time.

The Palestinians have been under an international embargo since Hamas was elected earlier this year. Government wages haven't been paid in months, and bloody factional gun battles have become commonplace. Patience is wearing dangerously thin.

Now it is expected that within days the Palestinian president will try to break this deadlock, possibly by dismissing the Hamas government and pointing technocrats in its place. Abbas recently said that bread is more important than democracy.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

JEFF KOINANGE, CNN AFRICA CORRESPONDENT: I'm Jeff Koinange in Johannesburg.

Well, he was one of the U.N.'s most outspoken diplomats. And now Jan Pronk, the U.N.'s top plan in Sudan, has gotten himself expelled for telling the truth. This in the latest incident of the Sudanese government thumbing its nose at the West.

What happens now to the future of U.N. peacekeepers in Darfur? And more importantly, what happens next to the millions of desperately displaced people of Darfur?

(END VIDEOTAPE)

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

The bad situation in Iraq seems to be getting worse by the day. In the next hour, the situation will be addressed live from Baghdad.

Our Pentagon correspondent, Barbara Starr, joins us this morning, though, for a little bit of a preview, a look at what we might expect from this press conference.

Good morning, Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Soledad.

Well, it's going to be a rare press appearance, indeed, by General George Casey, the top U.S. military commander in Iraq, and Ambassador Zalmay Khalilzad, the U.S. ambassador. These two guys do not often appear together on a podium to answer questions.

We're being told it's just a regular operational update, but, of course, the question is, security, security, security. And if it's not going to be "stay the course" anymore, what is it going to be? What is the U.S. military going to do in Iraq? What new ideas do they have?

All indications are, of course, here in Washington, as we've been reporting, the notion of timetables, time frames, projections, whatever you want to call it, putting the pressure on Prime Minister Nouri al-Maliki to begin to set some benchmarks. That's another word you hear, something to make the Iraqi security forces really stand up, meet some time frames, get their house in order, get out on the street, and get a handle on security.

There is a very definite feeling by the U.S. military that more U.S. troops aren't the answer. As one official said, "Look, we could put another 50,000 troops in Baghdad, another 50,000 on the streets of Iraq, and it fundamentally would not change the security equation."

So it will be very interesting to listen to these two men and see what new ideas they have to offer -- Soledad.

S. O'BRIEN: Are you expecting that, in fact, they're going to lay out those new ideas at this press conference? And will they be taking questions at the end? Do you know?

STARR: I think that we can expect, perhaps, a minimal opening statement. I would be very surprised if they're going to get up there and lay out some fundamental new strategy. But I do think reporters will try and press them on what all this conversation in Washington really means for the troops out there in Iraq. What is going to change for them?

It has been the deadliest month for U.S. troops in a year. And, of course, deadly, deadly times for Iraqi civilians.

S. O'BRIEN: No question about that.

Barbara Starr at the Pentagon for us.

Barbara, thanks.

STARR: Sure.

S. O'BRIEN: And we're expecting that news conference with top military and civilian officials in Iraq at the top of the hour. We're going to bring it to you when it happens. We're expecting that live, right here, 7:00 a.m. Eastern Time on CNN -- Miles.

M. O'BRIEN: It's about quarter of the hour. If you're just heading out the door, Chad Myers has everything you need to know.

Hello, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Miles.

(WEATHER REPORT)

S. O'BRIEN: All right, Chad. Thank you. MYERS: You're welcome.

S. O'BRIEN: A look at some of the stories we're following for you this morning.

A search under way right now for that U.S. soldier who is missing in Iraq. We'll update you on what's happening there straight ahead.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Some of the top stories we're following for you.

More bad news just in from Iraq. Two Marines killed. That brings to 89 the number of U.S. troops killed this month alone. That is the highest monthly death toll in nearly two years.

The Chinese government says North Korea has no plans for a second nuclear test -- Soledad.

S. O'BRIEN: In this morning's "House Call," smoking is a common culprit in lung disease. A new study says that drugs that are normally used to lower cholesterol could actually help people who've got chronic lung damage.

CNN Medical Correspondent Judy Fortin has our story.

(BEGIN VIDEOTAPE)

CHIP GATCHELL, COPD PATIENT: Picture if you were trying to breathe through a straw. That's the amount of breath often that we're able to get.

JUDY FORTIN, CNN MEDICAL CORRESPONDENT (voice over): That's how Chip Gatchell describes what it's like to suffer from COPD, or Chronic Obstructive Pulmonary Disease. It's a lung disease that combines emphysema and chronic bronchitis, making it difficult to breathe. Chip is one of an estimated 24 million Americans with impaired lung function. For them, there are no approved medications that can slow the progression of the disease.

GATCHELL: We have a regiment of meds that we can take that are considered maintenance meds.

FORTIN: Not smoking is the best way to maintain healthy lungs, but if you already have COPD, the damage has been done. So researchers have been trying to develop drugs that can slow the decline in lung function. Early research in animals has shown existing cholesterol-lowering drugs or statins do just that.

Now, for the first time, researchers have seen the same results in humans. After reviewing medical records of 485 current and former smokers, researchers at the University of Oklahoma Health Sciences Center found those taking statins lost lung function more slowly and had fewer hospital visits. DR. JESSE ROMAN, EMORY UNIVERSITY: There's a lot of information that suggests that COPD and other pulmonary disorders are associated with excessive inflammation and oxygen stress. If statins are able to inhibit or ameliorate those, then they may prevent disease, or at least help halting its progression.

FORTIN: Until larger studies confirm these initial results, lung experts like Dr. Roman remind patients there's something they can do themselves.

ROMAN: The most important thing for patients to do is to really stop smoking. We hope that these drugs will be helpful, but it will be more useful to not smoke.

FORTIN: Judy Fortin, CNN, Atlanta.

(END VIDEOTAPE)

S. O'BRIEN: Coming up at the top of the hour, we're expecting out of Baghdad General George Casey and the U.S. ambassador to Iraq, Zalmay Khalilzad. They're holding a major news conference on the war in Iraq. We're going to bring it to you live when it happens around 7:00 a.m. Eastern Time right here on CNN.

A short break. We're back in just a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: In business news this morning, the laptop battery recall is creating some more problems for Sony.

Andy Serwer is "Minding Your Business".

Good morning.

SERWER: Good morning, Soledad.

Some back story here. And like you said, the laptop recall is definitely vexing the company, apologizing yesterday in Japan, executives for Sony. But it was couched.

Interestingly here, the Sony executives who apologized were seated while they bowed and did not bow deeply standing, as Japanese executives might for public apologies of troubles. This underlines how Sony has been reluctant to admit that the troubles were really that severe and that they were that responsible for them.

Another point...

S. O'BRIEN: Severe or responsible. I mean, it's kind of two different things.

SERWER: Right. Well, I think there's a little of both here. And it's interesting here. Another point that the Sony executives were making yesterday was that this happens only rarely, and only in certain ways when the battery is connected to the laptop system, and when the laptop is used improperly. In other words, a little blaming the customer, I think there, don't you think?

S. O'BRIEN: Interesting.

SERWER: I mean, it really doesn't sound like they're taking full responsibility. Also saying, when the laptop gets bumped this can happen. Again, not our bad, it sounds like to me.

S. O'BRIEN: Yes, but at the end of the day for the shareholders, $425 million, right, is what the estimated cost is?

SERWER: Absolutely. And it's going to be, you know, 3.5 million batteries from them, and a total of nine million going all the way back through all the other companies.

They also talked a little bit about what exactly was going wrong, which I thought was interesting. They said the problems are caused by microscopic metal particles that mistakenly got inside the battery, causing short-circuiting. So when you hear that, it doesn't quite jibe with them saying if you bump it, it will cause that.

So some questions there. And Sony also saying that top executives were not going to be stepping down. Sir Howard Stringer is going to keep his job, and so will everyone else.

So, you know, some damage control. But I don't think of the first order.

S. O'BRIEN: Right. A little asterisk.

SERWER: Yes, exactly.

S. O'BRIEN: We're sorry -- kind of.

SERWER: Yes. Kind of, you know, with a little bit of a caveat there, I think is the best way to put that.

S. O'BRIEN: Interesting. Interesting.

What's ahead?

SERWER: We're going to be talking about Jeff Skilling, and obviously the big sentencing yesterday down in Houston.

S. O'BRIEN: Yes. And you mean big.

SERWER: Yes. A lot of years.

S. O'BRIEN: All right, Andy. Thank you very much.

SERWER: Thanks.

S. O'BRIEN: Miles.

(BEGIN VIDEOTAPE)

M. O'BRIEN (voice over): Here are some of the top stories on CNN.com this morning.

Read all about it in New York. It's getting ugly in the Senate race.

Candidate John Spencer now denying he knocked opponent Senator Hillary Clinton's looks. A "Daily News" reporter who sat next to Spencer on a plane wrote a piece claiming the candidate believes Clinton spent millions on plastic surgery. Spencer now saying that's outrageous.

Maybe they should call it some caf. A new study shows decaf coffee is often not totally caffeine-free. Most decafs have only a fraction of caffeine in the high-octane brew, but it still can be a problem for people who can not tolerate any caffeine at all.

The show will go on for actor Wesley Snipes, at least for now. Authorities found the actor on location in Namibia. He's wanted on tax fraud charges but won't be arrested there.

And that's a wrap.

For more on these stories, log on to our Web site, CNN.com.

The next hour of AMERICAN MORNING begins right now.

(END VIDEOTAPE)

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