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American Morning
Sadr City Showdown; North Korea Nuke Talks; Troops in Debt
Aired October 31, 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: Some breaking news in Iraq. The prime minister taking down checkpoints in a neighborhood controlled by militant militias. It's considered a big step backward for security in the area.
SOLEDAD O'BRIEN, CNN ANCHOR: Seven days till the midterm elections. Can Democrats really take back Congress? New poll numbers overnight. You're going to see them only here on CNN.
M. O'BRIEN: And another food scare across the country. This time lettuce and tomatoes could be making people sick with salmonella poisoning. Those stories and more ahead on this AMERICAN MORNING.
S. O'BRIEN: Good morning. Welcome back, everybody. It is Tuesday, October 31st. Happy Halloween. I'm Soledad O'Brien.
M. O'BRIEN: And I'm Miles O'Brien. Thanks for being with us.
S. O'BRIEN: We begin in Iraq this morning. He's a look at what's new.
The Pentagon is taking a look at increasing the size of the Iraqi security force and sending more American troops to train Iraqi forces. One hundred a three U.S. troops have died in Iraq this month.
And a showdown now over the Shiite stronghold Sadr City. Iraq's prime minister ordering the end of coalition blockades that have inflamed Muqtada al-Sadr, Iraq's most powerful Shiite cleric. That follows al-Sadr's nonspecific threat coming against the U.S.
Plus, horrifying stories of mass murder coming out in today's testimony at the trial of Saddam Hussein. And both Washington and Baghdad looking for a better plan to control violence in Iraq. A closer look this morning at the option of more Iraqi troops. CNN's Jamie McIntyre reports for us from the Pentagon.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN CORRESPONDENT: The Pentagon is considering proposals from U.S. commanders in Iraq to increase the goal for the total number of Iraqi security forces, a tacit admission that more Iraqi troops will be needed before significant reductions can be made in U.S. troop levels. A Pentagon official tells CNN that the proposal calls for a modest increase in the goal of 325,000 trained and equipped Iraqi army and police forces. Something that could require additional U.S. military trainers as well. But the official says that increase in trainers would not affect the overall U.S. force levels in Iraq, which vary between 140,000 and 150,000 U.S. troops, depending on routine rotations. One official suggested a 10 percent increase might be in the works, something in the order of 30,000 additional Iraqi forces. Currently the Pentagon says there are about 310,000 Iraqi troops that have been trained and equipped, of the goal of 325,000.
Just last week, Defense Secretary Donald Rumsfeld said he had requested a review of force levels from both Iraq and Afghanistan because he was dissatisfied with the pace that the forces were being trained. Rumsfeld said that new proposals have been offered by military commanders in both countries and that the latest set of recommendations is now under review here in Washington. The expected adjustments in Iraqi troop numbers would be one more sign that the plan to stand down U.S. troops as Iraqi troops stand up is not yet producing the desired results.
Jamie McIntyre, CNN, the Pentagon.
(END VIDEOTAPE)
S. O'BRIEN: And coalition blockades surrounding Sadr City going to be lifted by order of Iraq's prime minister. Nuri al-Maliki issued the order after Iraq's powerful Shiite leader, Muqtada al-Sadr threatened U.S. troops in Baghdad. Arwa Damon is live for us in Baghdad.
Good morning to you, Arwa.
Why?
ARWA DAMON, CNN CORRESPONDENT: Good morning, Soledad.
Well basically Sadr City has been surrounded by U.S. and Iraqi forces for about the last week. They are searching for a soldier, an American soldier, who was kidnapped on Monday. This is an area that is normally predominantly under militia control.
Yesterday we heard from the office of Muqtada al-Sadr, a call to all government employees to not go to work. A call for all shops to remain closed. And, in fact, that is what we have seen happening in Sadr City today. This is all to protest these U.S. and Iraqi checkpoints that have essentially, according to Sadr's office and according to residents in that area, blocked off this entire portion of the city. For example, following yesterday's car bomb, they are protesting they were unable to reach the hospitals and their list just continues and continues.
What we have just heard, though, is that now Iraqi Prime Minister Nuri al-Maliki himself saying that all blockades in and around Sadr City, all checkpoints throughout the capital, must be removed by 5:00 p.m. This is in many ways a victory for the militia.
Soledad.
S. O'BRIEN: Arwa Damon's in Baghdad for us this morning.
Arwa, thanks for the update there.
At the Saddam Hussein trial today, a witness told how he and 34 other Kurdish prisoners were taken to be shot by Iraqi troops back in 1988. Now he escaped. Prosecutors say, though, 182,000 Kurds died at the hands of Saddam's henchmen during the Anfal campaign.
Miles.
M. O'BRIEN: One week from the election and the war in Iraq still weighs heavily on voters' minds as they prepare to make decisions that could shift the balance of power in Washington. Some new poll numbers out just moments ago in some key close races, showing what a nail- biter it's going to be. President Bush still on the hustings in Georgia again today. Yesterday he rallied a crowd with some strong criticism of same-sex marriage.
For Republicans, Missouri is a so-called firewall state. A must- win for the GOP to keep control of the Senate. And our latest poll shows it cannot get any tighter than it is. A dead heat with a week to go. More from our senior political correspondent Candy Crowley.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN CORRESPONDENT: Here in Missouri we are talking about a Senate race that could not be more important, nor could it be any closer. The latest CNN Opinion Research poll shows 49 to 49. Senate Republican Jim Talent versus Democratic Challenger Claire McCaskill. Less of an indicator about how things will turn out, but nonetheless interesting, is a poll of registered voters. There it shows McCaskill with an eight-point lead.
Clearly now both camps believe it's going to come down to turnout. What they don't know is how the stem cell research initiative that's on the ballot will affect those who come out. Nobody is taking anything for granted. Both candidates are out, drumming up their base. The talent people say they have a spectacular get out the vote effort. One called it on steroids.
Obviously McCaskill is going into her base. That is the urban areas around St. Louis and Kansas City. Jim Talent heading now for the southeastern and southwestern more rural parts of Missouri.
Candy Crowley, CNN, St. Louis.
(END VIDEOTAPE)
M. O'BRIEN: Another race to watch is in Tennessee. One of the nastiest Senate campaigns in the country there. Harold Ford trying to become the first African-American senator from the south since reconstruction. But our new numbers show Republican Bob Corker pulling ahead. CNN's John King has more from Nashville.
(BEGIN VIDEOTAPE) JOHN KING, CNN CORRESPONDENT: A Senate race that so far has been most noteworthy for its controversial ads will feature some big political names in the campaign's final days. The Democratic candidate is Congressman Harold Ford of the Memphis area. He hopes to be the first African-American senator from the south since reconstruction. And coming in to help him over the next few days is a man with deep support in the African-American community, former President Bill Clinton.
The republican in the race is the former Chattanooga mayor, Bob Corker, who will be getting some high-profile help from First Lady Laura Bush and Republican Senator John McCain. This race is for the seat now held by the Senate Majority Leader Bill Frist and it is crucial to any Democratic hope of gaining a Senate majority.
In that context, Republicans will be cheering the new CNN poll just out this morning that shows among all voters a dead heat. But among those who say they are likely to vote next Tuesday, Mr. Corker has an eight-point lead -- 52 percent to 44 percent.
Now both candidates in this conservative state say they oppose same-sex marriage. Congressman Ford has been trying to score points by tapping into anxiety over the Iraq War, calling Corker a stay the course Republican. Interestingly, though, as the campaign winds down, Corker has been raising more and more questions about the president's strategy. And he told CNN in an interview Monday night that if he wins this election, one message he might bring to Washington is that perhaps Mr. Bush, after the election, should consider getting a new defense secretary.
John King, CNN, Nashville.
(END VIDEOTAPE)
M. O'BRIEN: And in Virginia, another donnybrook under way and it's a novel one. Democrat James Webb forced to defend some steamy passages of prose he wrote years ago. But the new numbers show he is pulling ahead of the incumbent. Incumbent George Allen. But still within the margin of error there.
S. O'BRIEN: Lots of tight races we're talking about this morning.
President Bush is on the campaign trail again today. He's in Georgia. He's trying to rally the Republican vote. And yesterday, in both Texas and in Georgia, the president talked about more than just terrorism and taxes. Listen.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: For decades, activist judges have tried to redefine America by court order, just as last week in New Jersey. Another activist court issued a ruling that raises doubt about the institution of marriage. We believe that marriage is a union between a man and a woman and should be defended.
(END VIDEO CLIP)
S. O'BRIEN: The president campaigns for Congressional Candidate Matt Collins today in Georgia. It's one of two Georgia congressional races that Republicans see as their best shots at beating incumbent Democrats.
You're going to want to catch a special two-hour edition of "The Situation Room." It begins at 7:00 p.m. Eastern Time tonight. Paula Zahn joins Wolf Blitzer live from CNN election headquarters all this week.
Happening this morning.
The southern California arson fire that killed four firefighters is now fully contained. And two men who were questioned by investigators have been released.
An outbreak of salmonella in 18 states has sickened more than 170 people. Health officials say the bacteria may have spread through some form of produce like lettuce or tomatoes. Eleven people have been hospitalized. No one's died.
Following a government attack on a religious school in Pakistan, Islamic leaders have called for nationwide demonstrations. They blame the U.S. for the attack against suspected al Qaeda militants, which killed 80 people. The U.S. denies any involvement in the strike. Villagers say the victims were innocent students and teachers.
The U.S. and its allies conducted naval exercises in the Persian Gulf. Forces conducted a mock boarding and search of a vessel. The drill was aimed at training forces to block the transport of weapons of mass destruction and related equipment.
M. O'BRIEN: A U.S. diplomat says that South Korea's fears of a possible armed clash with North Korea are absurd and that's a quote. South Korea has been hesitant to fully participate in a U.S.-led effort to stop and inspect ships leaving North Korean ports. It believes a plan could lead to violent confrontations and hurt diplomacy. The U.S. ambassador to South Korea says that some leaders of that country don't fully understand the inspection effort. South Korea is trying to strike a delicate balance between punishing the North for its nuclear weapons program and avoiding bloodshed.
The threat from North Korea has many U.S. officials worried that a nuclear arms race in southeast Asia may be coming, but at least one country, Japan, says it's committed to keeping nukes out of the question. CNN's Atika Shubert spoke with Japan's new prime minister in an interview you'll see only on CNN. She joins us from Tokyo with more.
Atika.
ATIKA SHUBERT, CNN CORRESPONDENT: That's right, Miles.
There were a lot of concerns about a regional arms race, particularly because Prime Minister Shinzo Abe of Japan is known for being a hawk. But he made it very clear in his interview with us today that Japan will not pursue nuclear weapons. Here's what he said.
SHINZO ABE, JAPANESE PRIME MINISTER, (through translator): Because of that experience as the only victim of the atomic bomb, we believe we have a special mission. That mission is, we need to take the lead in striving to eliminate nuclear weapons from the face of the earth. And in that context, we gave up nuclear arms as a policy option.
(END VIDEO CLIP)
SHUBERT: Now, instead, he says that Japan will rely on the security alliance with the United States. That that would be a sufficient military deterrent. He said he spoke with President Bush immediately after North Korea's nuclear test and he was assured that the alliance was unshakable. That, he said, would be enough of a deterrent.
At the same time, however, Prime Minister Abe did say in this interview that he wanted to change the constitution, specifically the pacifist clause of Japan's constitution that renounces war. That clearly opens the door for a more robust military deterrent in Japan. Something that would make Japan's neighbors very wary, indeed.
Miles.
M. O'BRIEN: OK. Atika Shubert, thank you very much.
And we just -- something crossed the wires here that's relevant to this story. Word from the Chinese foreign ministry, which of course has close ties to North Korea, that six-party talks, those multilateral negotiations aimed at stemming North Korea's nuclear ambitions, could soon be held once again. So we'll keep you posted on that as these developments come in.
Soledad.
S. O'BRIEN: Ahead this morning, the U.S. tightening the security along the border with Mexico. But is it working? We're going to take a look this morning.
And more trouble with those FEMA trailers. This time they're flooded. Angry residents say it could have been avoided. We'll explain ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
M. O'BRIEN: A developing story. This just in to us right now. According to the Chinese official news agency, North Korea has agreed to return to those so-called six-party talks which involve the key powers in the region. Of course, the United States, as well, Russia, as well. Aimed at stemming North Korea's nuclear ambitions.
Apparently the regime of Kim Jong-il agreed to return to those six-party talks. This coming to us from various wire services, news agencies, but initially from the Chinese official news agency, which is usually a reliable source of information on items from North Korea. Of course, China being the closest ally to North Korea in that region.
Once again, six-party talks to resume soon. Perhaps a diplomatic breakthrough there as North Korea continues its nuclear bluster.
Soledad.
S. O'BRIEN: The U.S. government says that tighter security at our borders is working and that the fewer arrests of illegal immigrants is proof. The Homeland Security secretary, Michael Chertoff, says security fencing, 1,900 new border patrol agents all helping to stem the tide of immigrants and drugs across the border. Just over a million arrests were made in 2006. That's down 100,000 from the year before. One hundred and eighty-six thousand illegals were expelled. That's up 10 percent from last year. Also 1.3 million pounds of marijuana have been seized.
The Mexican congress is calling on the embattled governor of Oaxaca state to step aside. Protesters have held the capital city of Oaxaca in southern Mexico demanding that the governor resign over alleged corruption. Well, federal Mexican troops are going to remain in the city until peace returns. Casey Wian has our report.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT, (voice over): Mexican federal police moved in to retake violence played Oaxaca. Since May, the site of protests by teachers and others demanding the ouster of the state government. An American independent journalist was killed while covering the uprising. You can hear the bullet and his screams while his camera rolled. India media photographer Brad Will was one of three people killed by local police in civilian clothes, according to a Reuters report, that was not confirmed by U.S. or Mexican authorities. Incredibly, the State Department says it's only hoping, not demanding, that Mexico investigate the killing.
SEAN MCCORMACK, STATE DEPARTMENT SPOKESMAN: We would hope that the matter is investigated vigorously to determine who's responsible. And that in the case that there were laws violated, that that person be brought to justice.
WIAN: U.S. ambassador to Mexico, Tony Garza, released a statement calling Will's death tragic. He also extended an advisory warning American citizens about the risks of travel to Oaxaca. A similar advisory exists for the border city of Nuevo Laredo, where drug violence is out of control. At least 17 journalists have been killed since 2000 while covering those stories.
LUCIE MORILLON, REPORTERS WITHOUT BORDERS: It's more and more dangerous for journalists to cover any issues related either to drug traffic or to local corruption. And these drug traffickers are politicians who have things to hide, have enlisted how critical it is for them to control the media.
WIAN: In the United States, protesters demonstrated outside Mexican consulates in New York and California, demanding President Vicente Fox withdraw his forces from Oaxaca. The Mexican government says they'll stay until order is restored.
Meanwhile, the State Department downplayed concerns the violence will destabilize Mexico while a new leader is about to take office. Spokesman Sean McCormack says Mexico's government has withstood every test since the disputed presidential election in July.
Casey Wian, CNN, Los Angeles.
(END VIDEOTAPE)
M. O'BRIEN: Let's get a check of the weather. Chad Myers at the CNN Center with that.
Hello, Chad.
(WEATHER REPORT)
M. O'BRIEN: A look at the stories we're watching right now.
The American Red Cross announces a major overhaul and investors are keeping a close eye on Warren Buffett. Aren't they always? Well, Andy will tell us what the billionaire's buying now.
That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
M. O'BRIEN: Some of our top stories this morning.
Major progress in the effort to end North Korea's nuclear program, perhaps. The Kim Jong-il regime apparently ready to return to talks with the U.S. and five other countries. This comes from the official Chinese news agency.
The Pentagon admitting it needs to increase the number of troops in the Iraqi military. The numbers could reach into the thousands.
Soledad.
S. O'BRIEN: The Red Cross is announcing a major overhaul in the wake of criticism of the handling of the Katrina disaster and 9/11, too. The Red Cross now says it's going to slash its 50-member board, also reduce the influence of overseers who are appointed by the president. Congress still has to approve any changes.
And a terrible set of deja vu for residents at a trailer park in Mount Hermon, Louisiana. They were evacuated there after Hurricane Katrina and placed there by FEMA. Well, now they're forced to dry out again. Some say, though, the second flood could have been avoided. Doug Mouton from the affiliate WWL has our story this morning.
(BEGIN VIDEOTAPE)
DOUG MOUTON, CNN CORRESPONDENT, (voice over): Ellen Campbell is helping a friend pour out the water from flood number two. She and her husband are with the Mount Hermon Baptist Church.
ELLEN CAMPBELL, HELPING FLOOD VICTIMS: But everything was kind of washed this way. You know, we opened the door, everything fell out.
MOUTON: It's bad enough for anyone to flood, but Ellen says what makes this so much worse is these were Katrina victims getting slapped a second time.
CAMPBELL: Everyone here is from New Orleans where, you know, they got the worst of it. So to have to go through it again and dry off all your belongings and settle in such an isolated place, it was not a good idea. It was not a good idea to put people down here.
MOUTON: Ellen says she wasn't surprised when floodwaters nearly got inside trailers in Friday morning's rain. And she wasn't surprised when, hours later, the creeks crested and water filled many trailers here at the Silver Creek Campground. Now, family photos, wet once during Katrina, must dry again.
UNIDENTIFIED MALE: You know, you lose everything already and that's all you've got left.
MOUTON: Now the parish says there are no records of people flooding in this trailer park before, but there have never been permanent residents of this trailer park before. Now FEMA says they followed all their strict guidelines in setting up this trailer park. But here's the thing. That is a creek. And on the other side of the trailer park is another creek. And people from the Mount Hermon area, who have lived here for years say, flooding here is completely normal.
CAMPBELL: It's a normal problem. It's a normal problem. It just happens and it recedes and, you know, but we never expect to put, you know, someone we live this close to the creek.
MOUTON: They won't be anymore. FEMA will move them out to a new trailer park.
ERICA MOONEY, FLOOD VICTIM: It's too much on most people because some people got flooded and now they got flooded again. They've lost everything twice. Why should they have to deal with that, you know? I mean, that's not fair.
MOUTON: Erica Mooney and her family are moving into this new FEMA site just outside Franklinton (ph). Her new trailer is a little bigger and sits on much higher ground. But she says she and many other former residents of Silver Creek are angry over how FEMA could approve a low-lying trailer site between two creeks.
MOONEY: They should have did some investigation into that, you know? You can't just put people in a place that you've never seen before, that you don't know anything about, you know? That sounds ridiculous.
(END VIDEOTAPE)
S. O'BRIEN: That report coming to us from Doug Mouton from our affiliate WWL.
Miles.
M. O'BRIEN: Andy Serwer is here to tell us how much a Nobel Prize is worth.
Good morning, Andy.
ANDY SERWER, CNN CORRESPONDENT: Good morning, Miles.
Some news to tell you about this morning concerning Merck, the pharmaceutical giant. It will be paying $1.1 billion for a tiny biotech firm called Sirna Technology that was producing drugs, it is producing drugs, based on a new technology that garnered two scientists the Nobel Prize for medicine last month. It's called RNA Interference Technologist. The two scientists are Andrew Fire, of Stanford. He's the one with the beard there and not the one with the bronze statue.
S. O'BRIEN: Not the sculpture.
SERWER: No, that's the Nobel Prize. And then there's Craig Mello of U Mass. And, as you suggest, this company was worth about $500 million yesterday. Today it's worth $1.1 billion because Merck wanted to buy it. So, you know, oftentimes we talk about movies winning prizes, Oscars, and then that increasing the value of the film. And maybe that's true also in the world of business for Nobel Prizes.
M. O'BRIEN: A little Nobel buzz there or something.
SERWER: I guess that's it.
M. O'BRIEN: What else you got?
SERWER: We're going to talk about Warren Buffett right now. How about that?
M. O'BRIEN: I think that's a good idea. I'm going to listen because I always pay attention.
SERWER: Yes, because when the Oracle speaks, you want to list. The Oracle of Omaha, Warren Buffett, has some things on his shopping list, and that includes a couple of companies that he didn't previously own, or at least one of them. Target, according to SEC documents, is a stock that he owns as of the end of June. Today a value of $268 million. That's his stake. Also Johnson & Johnson. He did own that previously. Now owns a lot more of it. And, of course, this is big news on Wall Street because often stock pickers follow his moves because he's such a successful investor.
M. O'BRIEN: Yes, he's a good guy to follow.
SERWER: He is a good guy to follow.
And then finally, just quickly, yesterday kind of a mixed picture on Wall Street. The Dow down just a little bit. The other indexes up. Dow dragged down by Wal-Mart which had weak sales because of that metro seven clothing line we were talking about. Those trendy clothes didn't sell too well.
S. O'BRIEN: Right.
SERWER: So that's the business news this morning.
M. O'BRIEN: What you got next?
SERWER: Next we're going to talk about oilman T. Moon Pickens and his son, who is in a little bit of trouble. We'll get to that.
M. O'BRIEN: All right. Thank you very much, Andy. See you in a bit.
SERWER: You're welcome.
M. O'BRIEN: Coming up on the program, some of the stories we're following right now.
Iraq's prime minister ends the U.S. blockade of Sadr City. Could be a big victory for Shiite militants.
And new polls are out on key races that could swing the balance of power in Congress. We'll have more on that ahead.
(COMMERCIAL BREAK)
SOLEDAD O'BRIEN, CNN ANCHOR: Breaking news out of Iraq this morning. The prime minister is ordering security checkpoints surrounding a violent neighborhood dismantled. It's considered to be a big victory for a large militant militia.
MILES O'BRIEN, CNN ANCHOR: Also some breaking news from North Korea. Kim Jong-il's regime expected to return to talks aimed at ending the north's nuclear weapons program.
S. O'BRIEN: And there's a salmonella outbreak in 18 states. Could it be lettuce and tomatoes that are making people sick?
Those stories and much more ahead on AMERICAN MORNING.
Welcome back, everybody. It is Tuesday, October 31st.
I'm Soledad O'Brien.
M. O'BRIEN: And I'm Miles O'Brien.
We begin in Iraq. Here's what's new this morning.
The Pentagon is looking at increasing the size of the Iraqi security forces and sending more American troops to train them. A hundred and three U.S. troops have died in Iraq this month.
And a showdown over the Shiite stronghold of Sadr City to tell you about this morning. Iraq's prime minister is ordering the end of coalition blockades that have inflamed Muqtada al-Sadr, Iraq's most powerful Shiite cleric. That follows al-Sadr's nonspecific threat against the U.S.
Let's get right to CNN's Arwa Damon in Baghdad with more -- Arwa.
ARWA DAMON, CNN CORRESPONDENT: Good morning, Miles. And let's take a look at the events that led to this very dramatic announcement by the Iraqi government.
Sadr City is a Mehdi militia stronghold. That is the militia that is loyal to radical Shia cleric Muqtada al-Sadr.
For the most, part U.S. forces have stayed out of Sadr City, partially because the Iraqi government is trying to avoid a full-out confrontation between the Mehdi militia and the U.S. and Iraqi security forces. But over the last week, U.S. and Iraqi security forces have set up checkpoints around that area and have launched operations inside the area.
They are looking for one of their American soldiers who was kidnapped on Monday. This caused the residents of Sadr City to protest, especially after a bomb that happened in a marketplace there yesterday, killing at least 26 Iraqis.
This also caused Muqtada al-Sadr's offices to call for all government employees to not show up at work, and for all shops to remain closed. And now today we are seeing the Iraqi government, Prime Minister Nouri al-Maliki, announcing that all checkpoints around Sadr City have to be lifted by 5:00 p.m. Also, though, all checkpoints in the entire city of Baghdad lifted by 5:00 p.m.
He said that these checkpoints should only be put into place during times of curfew and emergency cases. This does, by all counts, appear to be a victory for the militia, and for Muqtada al-Sadr.
M. O'BRIEN: Well, Arwa, if there was any doubt that Muqtada al- Sadr is a real powerbroker in this new Iraq, I guess we can put that aside right now. Clearly, he has a lot of clout here.
Is the Iraqi government of Maliki, is it -- is it unable to stand up to him? Who is really in charge here?
DAMON: Well, that is a question that actually a lot of people are asking here, both on the Iraqi and the U.S. military side. Prime Minister Nouri al-Maliki and Muqtada al-Sadr have a very complex relationship.
The prime minister in part owns his prime ministership to the support of Sadr's bloc. Back when it was good -- it was up to debate as to who the prime minister was going to be, Muqtada al-Sadr threw his support behind the prime minister, giving him that one vote that he needed to be the prime minister of the country.
The Iraqi government, for the most part, now has been looking for a political solution to disarm all the militias, not just the Mehdi militia. But the Mehdi militia is perhaps one of the more significant militias here.
They're hoping for a political solution. But they have been hoping for this for quite some time now.
Their solution to resolving this issue of the militias, and of the Mehdi militia, has been to try to engage clerics, to try to engage Muqtada al-Sadr himself, who has said that militias need to disarm, but at the same time has not quite dismantled his. All that we have really seen up until now has been a lot of talk, but really no action to disarm these militias -- Miles.
M. O'BRIEN: Arwa Damon in Baghdad.
Thank you very much -- Soledad.
S. O'BRIEN: We're getting word just out of Asia this morning that North Korea has agreed to return to the six-party nuclear arms talks.
Let's get right to CNN's Hugh Riminton. He's in Beijing for us.
Good morning, Hugh.
HUGH RIMINTON, CNN CORRESPONDENT: Hello there, Soledad.
It appears to be official. It's coming from the Chinese Ministry of Foreign Affairs. They say that behind the scenes there have been talks in Beijing taking place between North Korea, the United States, and China, and this has borne fruit. They say there will now be the full, formal six-party talks taking place soon.
No official date to it. But it seems it's the pressure behind the scenes, plus the U.N. sanctions after North Korea tested its nuclear weapons three weeks ago, appears to have borne fruit. Talks are now back on. North Korea will sit down across the table with the United States and the other members of the six parties, try to knot out where to go from here in the North Korea nuclear crisis.
S. O'BRIEN: Hugh Riminton for us this morning. He's in Beijing.
Thanks, Hugh, for the update -- Miles.
M. O'BRIEN: Here at home, America gets ready to vote. Here's what's new this morning.
We're in the home stretch. The crucial midterm election one week from today. Some new poll numbers out just moments ago from CNN showing key races tightening, and in some cases in a dead heat.
Let's begin in Missouri and that Senate race.
The latest CNN poll of likely voters again, just out this morning, shows that Democrat, Claire McCaskill and Republican Jim Talent at 49 percent each.
In Tennessee, that Senate race, the CNN poll shows Republican Bob Corker making some headway against Democrat Harold Ford Jr. Corker now has an eight-point lead, 52 percent for him, 44 percent for Ford.
And in Virginia, another hot Senate race with a week to go, Democrat Jim Webb has a four-point lead over incumbent senator George Allen, 50-46. Still within the margin of error. The poll making this also virtually dead even.
The polls were conducted for CNN by the Opinion Research Corporation.
At the top of the next hour we're going to go live to Missouri, Tennessee and Virginia for more insight into these three key races. We have the best political team on television. You'll hear from them shortly.
And you'll want to catch a special two-hour edition of "THE SITUATION ROOM". It begins at 7:00 Eastern tonight. Paula Zahn joins Wolf Blitzer live from CNN election headquarters all this week -- Soledad.
S. O'BRIEN: Happening "In America" this morning, in California fire crews have finally contained that wildfire that killed four firefighters last week. Now, arson is suspected. No arrests have been made, though. Two men were released after they were questioned.
In Arizona, 44 people are facing charges of smuggling hundreds of illegal immigrants into the United States. Eleven more people, including at least five Mexican nationals, are still at large. The FBI says the ring operated for more than 10 years and smuggled in Mexican, Salvadoran, and Dominican nationals between 500 and 800 bucks a piece.
In New Mexico, another threat against the state's second largest city. Have you heard this story?
An anonymous extortionist is demanding that the city of Las Cruces pay a large sum of money or else there's going to be random violence against its citizens. Now, five weeks ago, there was a similar threat made. That deadline, though, came and went without any incident.
Ahead this morning, one country's shocking surge in crime. Why are people there killing each other at an alarming rate?
Plus, another controversy with singer George Michael. We're going to tell you why his new TV interview is making headlines.
That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
S. O'BRIEN: Welcome back, everybody. A look at the day's top stories.
Another food supply scare. This time it's salmonella that's making people sick -- 172 people across 18 states. Contaminated lettuce and tomatoes could be to blame. And American scientists have detected a new drug resistant strain of bird flu in China. Right now it's only in poultry.
M. O'BRIEN: Here's a look at what CNN correspondents all around the world are covering today.
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DAMON: I'm Arwa Damon in Baghdad.
The Anfal trial continues today. Saddam Hussein and his co- defendants are present in court. However, represented by court- appointed defense lawyers.
Their private defense team continues their boycott. The chief judge rejecting a list of their demands.
Meanwhile, verdict day for the Dujail trial is expected on November 5th, just two days before the U.S. midterm elections. If found guilty, Saddam Hussein could face the death penalty. His chief defense attorney threatening that if that is the case, the violence in this country will only increase.
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ALPHONSO VAN MARSH, CNN CORRESPONDENT: I'm Alphonso Van Marsh in South Africa, where recently released crime statistics seem to back up what many people here assumed all along, that South Africa is one of the most crime-infested nations on earth. I'll have the story of a mother whose 15-month-old baby was shot dead as they tried to flee a gunfight in downtown Johannesburg, and the story of a butcher shop that was robbed not once, but twice, in a matter of hours. The shocking crime caught on tape.
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PAULA HANCOCKS, CNN CORRESPONDENT: I'm Paula Hancocks in London.
Pop star George Michael will be seen smoking cannabis on television this Tuesday. The singer says it helps keep him sane. But experts say it's actually one of the drugs that can turn you insane.
Once again George Michael's personal life overshadowing his professional life. In a year he's staging a comeback tour, his first live concerts in more than 15 years.
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M. O'BRIEN: For more on these or any of our top stories, log on to our Web site, CNN.com.
S. O'BRIEN: It's 43 minutes past the hour. If you're just about to head out the door let's first check in with Chad at the weather center for the traveler's forecast.
Good morning, Chad.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.
(WEATHER REPORT)
S. O'BRIEN: Here's a look at some of the stories we're following right now for you.
A security shake-up in Sadr City. Why is Iraq's prime minister ordering an end to U.S. checkpoints?
And a different kind of threat against U.S. servicemen and women once they get home. We'll tell you about that straight ahead on AMERICAN MORNING.
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M. O'BRIEN: Welcome back to the program. Let's go to the news wall and look at some of the feeds we are monitoring for you this morning.
Take a look at incoming 16 right there. That's a videotape replay of a space station docking. That's NASA television, one of my favorite channels.
In just a few hours NASA will announce whether it will, in fact, go back for a fifth and final time to refurbish and repair the Hubble Space Telescope. I'd put a lot of money on them saying yes, but we're watching that one closely for you.
Incoming 12, the White House, beautiful morning in Washington, as you see there. The president is there right now. He has the Sudanese envoy coming in.
He will obviously be talking about North Korea today in one way, shape or another now that we know that the Kim Jong-il regime has agreed to return to those so-called six party talks. The United States and China willing to participate in those negotiations. Perhaps a diplomatic breakthrough.
In the afternoon he'll head to Georgia for a little bit of stumping with the campaigns.
Incoming 17, that's Arwa Damon's live shot location. That's our position in Baghdad.
We just told you about another piece of breaking news out of Baghdad. Nouri al-Maliki, the prime minister of Iraq, removing barricades and checkpoints in the Sadr City section of Baghdad, controlled by that Shiite militia. A lot of questions now as to who's really calling the shots in Baghdad.
We'll keep you posted on all that and more as the morning goes on -- Soledad. S. O'BRIEN: All right, Miles. Thanks.
Thousands of U.S. military personnel are deep in debt, and so deep, in fact, that they're barred from duty overseas and considered to be security risks. Well, now the government is targeting cash advance stores that pop up near military bases. But as AMERICAN MORNING'S Chris Lawrence tells us, it's going to take much more than just that to fix the troops' money troubles.
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CHRIS LAWRENCE, CNN CORRESPONDENT (voice over): The storefront signs near Camp Pendleton target service members. "Get your money before Uncle Sam cuts the check."
LANCE CPL. CARLOS WEST, U.S. MARINES: They helped me out, because I'm (INAUDIBLE). We don't make that much.
LAWRENCE: Lance Corporal Carlos West has come looking for quick cash. The problem is, he already took out the maximum $300 loan at this payday advance store. So it's on to another store, and another $300 loan. There's no limit on how many a Marine can get.
West finished his first tour in Iraq, but may not qualify for a second.
REAR ADMIRAL LEN HERRING, U.S. NAVY: The individual who has an excessive debt ratio, one, is not deployable. And two, becomes a national security risk.
LAWRENCE: Thousands of young troops have a problem living off their basic pay. They're taking short-term cash advances. But instead of paying them off, they renew the loans over and over, and the interest rate skyrockets to 400, 500, 800 percent.
HERRING: It's predatory. It's legalized loan sharking in some cases.
LAWRENCE: Between Iraq and Afghanistan, the military needs every soldier and Marine it can muster. But in the past four years, the number who lose their security clearance to bad debt has increased nearly 10 times.
(on camera): Why does such a high debt make them a security risk?
HERRING: Most individuals who are lured into espionage-like activities are lured there because they are financially in debt.
LAWRENCE (voice over): Next year, a new law takes effect that only applies to service members. It caps annual interest on their consumer loans at 36 percent
CHARLEY PIEDMONT, CASH & CHECK OWNER: If I can lend $10,000, I could do it at 20 percent. But we can't lend $10,000. We can lend $300. At $300, I make $3, $4. LAWRENCE: Charlie Piedmont says he's closing his payday advance store because of the new law and expects others near military bases to follow. A spokesman for the Payday Advance Trade Group told CNN they are "... getting out of the military consumer lending business."
PIEDMONT: But the fact of the matter is, the military personnel are underpaid and undertrained in dealing in fiscal matters.
LAWRENCE: The services do have alternatives: the USO, credit unions, emergency loans.
WEST: They don't tell you that, you know? All you see is your paycheck and you go, OK, I need this, I need this.
LAWRENCE: In fact, the services do teach finance classes, as far back as basic training.
The military won a battle against cash advance stores. But the bigger war is on bad money management. That may be more difficult to win.
Chris Lawrence, CNN, San Diego.
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S. O'BRIEN: A look at our top stories straight ahead this morning.
And we're "Minding Your Business". Hundreds of companies may soon be in big trouble over stock options. We'll tell you which ones this time around on AMERICAN MORNING.
Stay with us.
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M. O'BRIEN: Just when you thought it was safe, it turns out the stock option scandals are not over.
S. O'BRIEN: I didn't think we were safe.
M. O'BRIEN: Andy.
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M. O'BRIEN: There you go.
S. O'BRIEN: Ooh, corporate executives doing bad things. I'm shocked.
ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Yes. And this is their theme music from now on, apparently.
M. O'BRIEN: Yes.
SERWER: Yes, the stock option backdating scandal is not over. This, according to Securities and Exchange Commission chief Christopher Cox, yesterday saying that more companies will face charges and investigations.
Already 100 companies are being investigated and have had chcharges brought against them. And apparently there will be more.
Top executives -- and we'll just go through the list here quickly -- UnitedHealth, KLA-Tencor, CNET, McAfee and Apple have already stepped down or will step down.
And an interesting note here. Monster.com, remember we told you about Andrew McKelvey. He left as the CEO and the chairman but decided he needed to stay on the board and be the chairman emeritus.
Finally, that has caught up with him. The scandal has widened there, and he's been forced to leave that position, as well. Apparently, he decided he did not want to testify or talk to SEC officials. That's always a problem...
M. O'BRIEN: That's a problem.
SERWER: ... when you decide to speak to the Securities and Exchange Commission.
M. O'BRIEN: Right.
S. O'BRIEN: It's never a good sign.
SERWER: No, never a good sign.
M. O'BRIEN: So how is his job search going? Just out of curiosity. Is he using Monster?
SERWER: Well, he's going to be posting an ad, I would imagine.
M. O'BRIEN: I guess so.
SERWER: And more skullduggery from the executive...
M. O'BRIEN: Good word, by the way.
SERWER: Yes, I love it.
The son of billionaire oil tycoon T. Boone Pickens has pleaded guilty to securities fraud. This yesterday. Michael O. Pickens, 52 years old, acknowledged guilt in his scheme to inflate stocks, using hundreds of thousands of hoax faxes, going back to December 2004.
And remember when we talked about those fake phone messages? "Hey, I've got a hot stock," where someone inadvertently...
S. O'BRIEN: Right.
SERWER: ... left on your...
S. O'BRIEN: What are the hoax faxes? SERWER: Here -- I've got -- this is how -- this would be a fax that would go and land up on your fax machine: "Hey, put your cell phone on. I've been trying to get you for hours. I've got a stock for you that's going to triple in price."
Here's the ticker: "Call me or Linda right away. P.S., You better be good to me this Christmas. No other stockbroker has given you back-to-back wins. Thanks, your shining star financial planner."
Of course this is all bogus. He faces five years in jail, fines of $3 million. And apparently he's getting treatment for substance abuse.
M. O'BRIEN: He doesn't need the dough, does he?
SERWER: No.
M. O'BRIEN: Yes.
SERWER: And if he's in good stead with his father, he does not need the dough at all.
M. O'BRIEN: Yes. All right.
S. O'BRIEN: That might be a big "if".
SERWER: Apparently -- especially now. Right, Soledad?
S. O'BRIEN: A gargantuan "if".
SERWER: Yes.
S. O'BRIEN: All right. Andy, thanks.
SERWER: You're welcome.
M. O'BRIEN: All right. See you in a bit.
S. O'BRIEN: Here's a look at some of the top stories on CNN.com this morning.
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S. O'BRIEN (voice over): A star-studded marriage is breaking up. Oscar winner Reese Witherspoon and actor Ryan Phillippe are separating after more than seven years of marriage. According to the Web site TMZ.com, the breakup wasn't triggered by any single event, just cumulative circumstances.
Giant computers known as mainframes are making a comeback. They were developed in the 1950s and thought to be going the way of the dinosaur. But this year IBM's mainframe revenue is up 10 percent. One expert says they're more energy efficient and take up less space than a cluster of smaller servers.
And paleontologists are having a heyday in an ice age riverbank cave in Missouri. The cave was discovered in 2001 by a road crew, and inside 50,000-year-old claw marks discovered in the clay walls. They were made by the largest bear species to ever walk the earth. Scientists are also finding all kinds of fossil treasures dating back nearly a million years.
For more on these stories, log on to our Web site at CNN.com.
The next hour of AMERICAN MORNING starts right now.
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S. O'BRIEN: We begin with breaking news out of Iraq. The prime minister orders some security checkpoints dismantled. It's considered to be a big win for the militants.
We're live in Baghdad this morning.
M. O'BRIEN: And there's some breaking news from North Korea as well. The country agrees to return to talks aimed at ending its nuclear weapons program.
S. O'BRIEN: Seven days until the midterm elections. We'll take a look at races in three states key to Democrats retaking Congress.
M. O'BRIEN: And some new fears this morning. Lettuce and tomatoes could be causing a salmonella outbreak across the country.
Those stories and much more ahead on this AMERICAN MORNING.
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