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American Morning

Job Seekers Bombed; Bush Listening Tour; South Caroline Couple Found Dead; Political Gotcha; Shuttle Wing Concern; minding Your Business

Aired December 12, 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: Breaking news in Iraq. Dozens killed, more than 200 hurt in simultaneous car bombings. Violence stepping up as President Bush may not announce a new way forward before the new year.
SOLEDAD O'BRIEN, CNN ANCHOR: Lost and tragically found. A missing husband and wife found dead off a major highway. Now there's some tough questions for police.

M. O'BRIEN: An E. Coli mystery. White onions, not green, test positive for the deadly bacteria. New problems for Taco Bell as the number of cases is now at 400 in the Northeast.

S. O'BRIEN: And Christmas in Seattle. The trees are going back up at the airport. And the controversy that brought them down, apparently is resolved on this AMERICAN MORNING.

Good morning. Welcome, everybody. Tuesday, December 12th. I'm Soledad O'Brien.

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

We begin with what's new in Iraq this morning. A suicide bomb targeting Iraqis waiting in line for jobs. At least 60 dead, 200 hurt.

President Bush holds a teleconference with military commanders and U.S. ambassador to Iraq, Zalmay Khalilzad. Bush will also meet with the Iraqi vice president at the White House.

While a new CBS News poll shows only 15 percent of Americans say the U.S. is currently winning in Iraq. That's an all-time low.

CNN's Cal Perry joining us live from Baghdad with the latest on that bombing.

Cal.

CAL PERRY, CNN CORRESPONDENT: Good morning to you, Miles.

The bombing at about 7:00 a.m., very powerful indeed. Felt for miles across the capital. It's about a mile from where I'm standing right now and it shook our bureau here quite hard. At least 60 people are dead, some 200 plus others wounded. What we understand from Iraqi police is that a group of day labors looking for work saw a man in a pickup truck waving them over to the pickup truck saying that he had work for them to do. When the crowd gathered around, that is at the point in which he detonated these explosives. Scenes of absolute carnage there in that downtown square.

And unemployment is a major concern here in Iraq. This is why day labors are a staple here across the country. Unemployment ranges from anywhere between 20 percent and 60 percent. So we've seen this style of attack before. In fact, in the town of Hilah (ph) last month, the same type attack. Nineteen people killed there.

But, again, Miles, this morning at 7:00 a.m., a very, very disturbing and deadly attack. Hospitals nearly overwhelmed in the capital and we do expect the death toll to rise.

Miles.

M. O'BRIEN: Cal Perry in Baghdad. Thank you very much.

From Saudi Arabia, an effort to fan the flames of sectarian violence in Iraq. Religious leaders there calling on their fellow Sunnis in neighboring Iraq to launch a holy war against Shiites. The call to Jihad is posted on an Islamic website and says Shiites are marginalizing Sunnis in Iraq with the help of the crusaders. An apparent reference to the U.S.

S. O'BRIEN: President Bush is going to get more advice today on the war in Iraq. His press secretary, Tony Snow, says the president may not be ready to speak to the nation before Christmas. That he may need more, more time, to review all the ideas he's been getting. CNN's White House correspondent, Ed Henry, has our report this morning.

(BEGIN VIDEOTAPE)

ED HENRY, CNN CORRESPONDENT: The president, this morning, has a secure video conference with military commanders in the field and then meets in the Oval Office with the vice president of Iraq. All part of a high-steaks effort to chart a new course in Iraq. Yesterday was a meeting with retired generals and other military experts, as well as a stop at the State Department to show the president is in listening mode as he struggles to find a way forward.

At the State Department, the president called Iraq a "central component" in the war on terror. Different from what he said over and over, that Iraq is, "the central front" in the war on terror. But White House Spokesman Tony Snow quickly insisted this was not a major change, raising questions about whether the president has a dramatic new approach in store or whether these reviews by the State and Defense Departments will just give the president some political cover to largely ignore the recommendations of the bipartisan Iraq Study Group. We'll get the answer when the president delivers a major speech unveiling his new approach.

Ed Henry, CNN, the White House.

(END VIDEOTAPE)

M. O'BRIEN: Another twist in the E. Coli investigation. Nearly 400 cases now in the Northeast according to federal officials in today's "New York Times." And the feds say the green onions are not the source after all. It turns out the test that implicated scallions, conducted first by Taco Bell and then confirmed was New York State health officials, was botched. White onions have now tested positive with a different E. Coli strain, but it's not linked to any illnesses. Green onions are still off the menu at Taco Bell while health officials try to sort this out. In Iowa and now in neighboring Minnesota, E. Coli has turned up in people who ate at Taco John's. That's a chain unrelated to Taco Bell.

I Miami, the world's largest cruise ship is schedule to sail again today. This time two extra doctors and 45 more cleaning staff aboard. Last week an outbreak of the Norovirus infected 108 cruise goers aboard Royal Caribbeans Freedom of the Seas ship. It was the second outbreak in a row. Three hundred and eighty people got sick on the previous cruise. The ship has been scrubbed from stem to stern.

S. O'BRIEN: Well, it's certainly not the ending that anybody wanted. Family and friends are mourning the loss of a South Carolina couple who disappeared last week. Wayne and Dianne Guay went missing on their drive from South Carolina to New York over the weekend. They were found dead in their car in North Carolina on Monday. AMERICAN MORNING's Jason Carroll has details.

Jason, good morning.

JASON CARROLL, CNN CORRESPONDENT: And good morning to you, Soledad.

You know, when we were out here yesterday speaking to the family in the afternoon, they were still waiting for word on the whereabouts of the couple. And just a few hours after we left the house here in New York, they got the devastating news.

(BEGIN VIDEOTAPE)

MEGAN GUAY LIENDO, DAUGHTER: They were perfect people. We always said we loved each other and we gave each other hugs. And I'm thankful that God gave them to me.

CARROLL, (voice over): A daughter's pain after learning her parents died apparently their car swerved off a North Carolina interstate into a swamp. Police discovered Wayne and Dianne Guay's white Mazda submerged Monday afternoon near Rocky Mount, North Carolina. They had left early Thursday morning from their Myrtle Beach, South Carolina, home. Up Interstate 95, bound to visit family in New York.

A 12-hour drive they've taken many times. Family members were active in the search, passing out flyers, checking with hospitals, even paying for the helicopter that spotted their car near the interstate. South Carolina police say they checked by patrol vehicles and helicopter the routes the Guay's may have driven, but one daughter said she begged the local police to more actively search for her parents and that if not for family efforts, they might still be missing.

LIENDO: I'm upset because it was my brother and my uncle who found them.

CARROLL: Because the Guay's were traveling with a car full of gifts, family members suspect foul play. Police are still investigating that possibility. Police also say they're looking at another possibility. A report of a traffic collision near that location Thursday.

LISA EDGE, WBTW REPORTER: There was a call made to 911 in Nash County saying there was a traffic collision in that same area. EMS and fire officials got out to that scene but they weren't able to find anything.

CARROLL: In the end, it may have simply been a car accident that took their lives. Little comfort for a grieving family.

(END VIDEOTAPE)

CARROLL: An autopsy should reveal more information about how the Guay's died. Meanwhile, the family is dealing with how to tell their five-year-old granddaughter why they won't be coming home for the holidays.

Soledad.

S. O'BRIEN: Oh, such a sad, sad story. Jason Carroll, thanks for the update.

The search going on for three missing climbers. It's on hold, in fact, as blizzard conditions hit Oregon's Mount Hood. Friends Kelly James and Brian Hall, both from Dallas, and Jerry "Nikko" Cook of Brooklyn, New York, set out on a climb on Wednesday. Now one of them used a cell phone to call his family on Sunday. He said they were in trouble and that two were going out to look for help. Well, rescue teams describe really treacherous conditions in the mountains. Strong winds, little visibility and forecasters say they're expecting 18 feet of snow to fall in the area over the next couple of days. So it's really, the clock is ticking to try to get to them as soon as possible.

M. O'BRIEN: In Washington, Democrats are getting a taste of what it's like to be in charge on Capitol Hill. Along with the perks of power come the gotcha moments. And the incoming House Intelligence chairman is the current victim has he flunked an important test. AMERICAN MORNING's Bob Franken live in Washington with details.

Good morning, Bob.

BOB FRANKEN, CNN CORRESPONDENT: Good morning.

Big surprise, Miles, politics is a tough business. Just ask the incoming chairman.

(BEGIN VIDEOTAPE)

FRANKEN, (voice over): The incoming House Intelligence chairman, Silvestre Reyes, has just been given a rude welcome. A pop quiz from a congressional quarterly report. "Al Qaeda is what?," he was asked, "Sunni or Shia." His answer, "predominantly probably Shiite." Al Qaeda is largely Sunni. Nor could he describe Hezbollah, long dominate on the U.S. list of terrorist organizations.

JEFF STEIN, CONGRESSIONAL QUARTERLY: How is the chairman of the House Intelligence Committee going to ask intelligent questions of the CIA and the Pentagon's spy agencies if he doesn't know what to ask?

FRANKEN: Well, in 1999, then presidential candidate George W. Bush flubbed a similar, impromptu quiz about world leaders.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The new Pakistani general has just been elected. He's not lucky. This guy took over office. He appears he's going to bring stability to the country. And I think that's good news for the (INAUDIBLE).

UNIDENTIFIED MALE: And you can name him.

BUSH: General. I can name the general.

UNIDENTIFIED MALE: And it's?

BUSH: General.

FRANKEN: He still became president. It's not only reporter whose lay an ambush.

UNIDENTIFIED MALE: We have a situation in the Chicago Islands (ph) which could blow up into an international incident. I'm wondering what you think about that, George.

UNIDENTIFIED MALE: I'd have to study the issue more fully to give you a complete answer.

FRANKEN: Of course we all know the islands are claimed by both Japan and China, right? This gotcha game is nothing new. Sometimes the candidate even gets himself.

GERALD FORD, FORMER PRESIDENT OF THE UNITED STATES: There is no Soviet domination of Eastern Europe and there never will be under a Ford administration.

JIMMY CARTER, FORMER PRESIDENT OF THE UNITED STATES: I would like to see Mr. Ford convince the Polish Americans and the Check Americans and the Hungarian Americans in this country that those countries don't live under the domination of supervision of the Soviet Union behind their iron curtain.

(END VIDEOTAPE) FRANKEN: Of course, President Ford had already had his learning curve and apparently, Miles, Chairman Reyes is still having his. He's got some cramming to do. He did put out a statement saying that he is "acutely aware of al Qaeda's desire to harm Americans.

Miles.

M. O'BRIEN: And acutely aware of Sunni from Shiite now, I'm sure.

FRANKEN: And acutely aware of treacherous reporters.

M. O'BRIEN: Yes, indeed. And won't be talking to him any more, I'm sure.

Bob Franken, thank you very much.

Soledad.

S. O'BRIEN: Well, the Christmas trees are going back up at the Seattle Tacoma Airport this morning. You'll remember they were removed after a rabbi was threatening to sue because there was no menorah in the airport's holiday decorations. The rabbi said getting rid of the trees wasn't the point. So he said he wasn't going to sue. Listen.

(BEGIN VIDEO CLIP)

RABBI ELIZAR BOGOMILSKY, CENTRAL ORGANIZATION FOR JEWISH EDUCATION: People are more educated today. People realize the sensitivity to it and people, hopefully, will be more welcoming.

ALEC FISHKIN, PORT OF SEATTLE: What I'd like to see is put up a menorah, put up a little Kwanzaa symbol and put the tree back up, right? End of story.

(END VIDEO CLIP)

S. O'BRIEN: A happy ending after all it sounds like. We told you it wasn't the final word yesterday. Airport officials says they're going to meet with community members and work out a plan for next year's holiday decorations.

M. O'BRIEN: Well, we're glad to see that ended well.

Stay with us. Chad Myers has your traveler's forecast when we come back.

The shuttle gets dinged. Engineers say it's no reason to fret, but they are sharpening their pencils and pouring over the pictures to make sure.

And diagnosis Alzheimer's. What could be a very big breakthrough in spotting a devastating disease. AMERICAN MORNING's coming right back.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody. Breaking news out of Iraq this morning. Let's show you some of the latest pictures from Baghdad. At least 50 people have been killed, 200 others hurt in two suicide bombings that happened overnight.

And in Chile, a formal farewell to the former dictator, Augusto Pinochet. A military funeral is set for later this morning.

It's 13 minutes past the hour. Let's get right to Chad with an update on the traveler's forecast for you.

Good morning, Chad. How's it looking?

(WEATHER REPORT)

M. O'BRIEN: The crew of the space shuttle Discovery sleeping right now. They're getting ready today for an important space walk while engineers on the ground pour over some data on a couple of interesting dings which occurred to the space shuttle Discovery.

First of all, take a look at the leading edge of the wing. Yesterday they took some time out from their planned time line to focus on this section of the leading edge of the left wing of Discovery. There are sensors all behind here, which were installed after the loss of Columbia nearly four years ago.

And those sensors detected a very faint strike somewhere in this area. There are 22 panels on either side of this reinforced carbon carbine, which protects it against the hottest heat of reentry. On that initial inspection, it appears there's no serious problems with it.

You can see there's a little bit of discoloration there, but the engineers' first indication is that it's probably OK and that detection of a strike by a micro meteorite was about 100 times less than they would normally be concerned about. So they're doing definitely the due diligence here.

Take a look at some pictures from yesterday. Just before docking, as the space shuttle Discovery came in for docking. This is sped-up video of this back-flip maneuver which allows the crew in the space station to take some pictures of the backside to make sure that heat shield is intact.

Let me show you some of those pictures and show you what some of the engineers are looking at as well. This is an important door. This is the door which allows the pipes to connect between the main engines and that big, orange, external fuel tank.

I'll do the highlight of the door right here. And what you're seeing here is a couple of pieces of cellophane that have stuck out, as well as some chips in the tiles there. It appears to be not a serious concern but, once again, the engineers will be looking at that very closely today as they get ready for that space walk.

Soledad.

S. O'BRIEN: Thanks, Miles.

There could be huge news in science. A possible test for Alzheimer's. A new study out this morning says a pattern of proteins in spinal fluid may indicate the presence of Alzheimer's. Researchers say more study is needed before doctors could start doing spinal taps to actually test people to see if they have Alzheimer's.

Jeff Skilling gets the best Christmas present he could possibly think of. Up next, he's not off to jail just yet. Ali Velshi is going to explain why straight ahead.

And rebound. When it comes to the ball the NBA players use -- remember we told you about this story -- well, what's old is new again. They're getting rid of what was new.

And busted. You'll hear the 911 call that lead police to Nicole Richie, who was allegedly under the influence and driving the wrong way on an L.A. freeway.

Those stories and much more ahead. Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Happening this morning.

A strategy session in Iraq. President Bush talking to some of his top commanders and meeting with Iraq's vice president.

And E. Coli now in Minnesota and in a different fast food chain. White onions, not green ones, also testing positive for E. Coli in the Taco Bell outbreak.

S. O'BRIEN: Oh, like her best friend Paris Hilton, Nicole Richie -- or I don't know if they're former best friends now. Anyway, they used to be best friends -- now facing charges for driving under the influence. Richie was arrested early on Monday after she was spotted driving the wrong way apparently on the 134 freeway in Burbank. A witness called 911. Here's the call.

(BEGIN VIDEO CLIP)

OPERATOR: 911 emergency.

CALLER: Yeah, if you're heading on the 134 west, there was a car coming on the off-ramp driving the opposite direction of traffic, and he was basically entering on the exit.

OPERATOR: The party's now traveling eastbound on the westbound lane?

CALLER: Yes. I don't know if he kept going, but, I mean, I saw him coming up the off-ramp and I was like, you got to be kidding me. I thought maybe it was a cop, but it was just a normal SUV.

OPERATOR: OK. We'll get somebody to go look for him.

(END VIDEO CLIP)

S. O'BRIEN: Well, it wasn't a him. It was a her. In fact, it was apparently Nicole Richie, as she failed, the police say, a sobriety test. She apparently told police she had taken Vicodin, had been smoking pot. So she paid a fine, has been released and is charged with DUI.

M. O'BRIEN: And weighed in at 85 pounds.

S. O'BRIEN: 5'1", 85 pounds.

M. O'BRIEN: I didn't know they weigh you when they book you these days.

S. O'BRIEN: Well, you have to put your height and your weight, you know.

M. O'BRIEN: Oh, you do. OK.

S. O'BRIEN: Not that I was ever booked. That made it sound like I -- when I was in prison, Miles.

M. O'BRIEN: It's mysterious. All right, thank you.

S. O'BRIEN: But, no. But apparently, yes, that's . . .

M. O'BRIEN: That's light.

S. O'BRIEN: She's a thin girl.

M. O'BRIEN: Yes.

The Federal Reserve is meeting today for the last time this year. Ali Velshi "Minding Your Business."

Good morning, Ali.

ALI VELSHI, CNN CORRESPONDENT: I have no idea whether they weigh you when you're booked. I don't know.

We should have theme music for this. It's Fed day today. It's a big day. Yes, OK. We won't do the theme music.

Today's the last Fed meeting of the year. The Federal Reserve gets together and they talk about interest rates. Fed rates right now are 5.25 percent, which means the prime rate, which is the rate that matters to a lot of people who are watching this, is 8.25 percent. You'll remember the Fed was increasing rates for 17 meetings in the row until they stopped doing so this summer.

The betting on the stock market today is that the Fed is not going to raise interest rates today, and that's good news for consumers and businesses as we head into the holiday season. I saw a report this morning that said that people aren't shopping as quickly as they were last year, so the boost might help them, the idea that there are not going to be more interest rates before the end of the year. I'll have more on that in an hour to tell you what exactly we're looking for with the Fed.

Stocks were up a little bit on the speculation that the Fed's not going to move. The Dow was up about 21 points at 12,328. We're in good territory with all of those markets for the year, but 2006 is set to be the mergerest year in the history. We're going to be keeping a look on some of the mergers. Also a good sign of a strong economy.

And you were talking about what they do when you get booked. Well, Jeff Skilling, the former CEO of Enron, was supposed to report to prison outside of Minneapolis today. That's not going to happen while a court considers his bail application.

But he was going to a place that's about 75 miles south of Minnesota. It was part of the University of Minnesota until 1992. And we're told that it feels like a college campus. He was booked to be living in a room that was built for two and then converted for four. He'll make 12 to 40 cents an hour, which is less than he was making at Enron.

Miles.

M. O'BRIEN: And no margaritas there.

VELSHI: No margaritas.

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

VELSHI: OK.

M. O'BRIEN: It's the rebound that the NBA players had been hoping for. Leather basketballs are back. The NBA introduced a special microfiber composite ball this season. We told you about it a couple of weeks ago. That's it on the left. Players complained, though, that the balls caused abrasions on their hands and on the coaches' hands.

S. O'BRIEN: Oh, so sad.

M. O'BRIEN: Oh.

Yesterday NBA Commissioner David Stern finally signaled the buzzer on the new ball saying that leather would return to the boards on January 1st.

You knew that would happen.

S. O'BRIEN: Yes, I knew.

M. O'BRIEN: They'd come up with something (ph).

S. O'BRIEN: When Andy Serwer told us about it originally and brought in the basketball, I knew, that's not going to last.

M. O'BRIEN: Not going to last.

S. O'BRIEN: Not for a minute.

Ahead this morning, sick at sea. Is the world's largest cruise ship finally ship-shape? The Freedom of the Seas is getting ready to sail again, but remember, two previous voyages have come home with sick passengers.

Also, you know, year ago they were called sundown towns, as in if you're black you want to be out by sundown. We're going to take a closer look at these towns, see how far we've really come when it comes to race relations.

And a parting shot. Kofi Annan says good-bye, but not before he says a few choice words about President Bush. We'll tell you what he said in just a moment. AMERICAN MORNING's back in a moment.

(COMMERCIAL BREAK)

M. O'BRIEN: Breaking news in Iraq. Dozens killed, hundreds injured in overnight bombings. The violence increasing as President Bush is said to be holding off announcing a new way forward.

S. O'BRIEN: Back to sea. The world's biggest cruise ship pulls up anchor after two different outbreaks of Norovirus. What's the new plan to keep the germs

S. O'BRIEN: Back to sea. The world's biggest cruise ship pulls a banker after two different outbreaks of norovirus. What's the new plan to keep the germs at bay this time.

M. O'BRIEN: And another rescue mission in Oregon. Three climbers stranded on Mount Hood right now with a worrisome storm about to move in on this AMERICAN MORNING.

S. O'BRIEN: Welcome back, everybody, Tuesday, December 12th.

I'm Soledad O'Brien.

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

We're glad you're with us.

S. O'BRIEN: Let's begin in Baghdad this morning, where a truck bomb exploded right in a crowd of Iraqis who were lining up for day jobs. At least 60 people were killed, another 220 people wounded. Those are new numbers coming to us. According to Iraqi police, the truck was packed with 440 pounds of explosives.

President Bush getting more advice today on the war in Iraq. His press secretary, Tony Snow, says the president may not be ready to speak to the nation before Christmas, that he might, in fact, need more time to review all the ideas he's been getting.

CNN's Kyung Lah is live for us in Washington this morning. Good morning, Kyung.

KYUNG LAH, CNN CORRESPONDENT: Good morning, Soledad.

We're expecting onday two of the president's listening tour to get an assessment on the ground. At least that is what the president is expecting. He's going to be holding a video teleconference with military commanders in Iraq. This will also include U.S. ambassador to Iraq Zalmay Khalilzad. What he's expected to hear is a blunt assessment of what is happening as far as the military situation in Iraq.

Now, this afternoon, after the morning teleconference, we're also expecting to see appearing in the Oval Office is Iraq's Sunni vice president. He is expected in remarks that he made on Baghdad television to express his dismay over the Shiite-led government, what the security situation is in Iraq.

So today, the overall theme, what is happening on the ground in Iraq. This is day two.

Yesterday, the president was at the State Department. This involved a meeting with Secretary of State Condoleezza Rice. He met with advisers there, and they discussed reconstruction and also the regional diplomatic efforts that's happening as far as in Iraq.

Soledad, we are expecting the listening tour to lead up to that announcement we're expecting before Christmas.

S. O'BRIEN: Although, Kyung, now it looks as if there may or may not be an announcement before Christmas, depending on what exact information the president gets.

Are we getting a new timeline, do you know?

LAH: As far as -- yes. As far as a timeline for his announcement, expected announcement, what the president says he's going to do is get the assessment from all levels of the government, whether they be advisers here in Washington and also in Iraq, and then he's going to take all this, including the Iraq Study Group, and then perhaps have an address before Christmas.

S. O'BRIEN: Kyung Lah for us this morning.

Thank you, Kyung -- Miles.

M. O'BRIEN: Outgoing U.N. Secretary-General Kofi Annan with some parting shots aimed at President Bush. It happened during a farewell speech at the Truman Presidential Library in Missouri. Annan suggested President Bush has to be a better leader, more willing to work with the global community to tackle the world' problems, including terrorism.

(BEGIN VIDEO CLIP)

KOFI ANNAN, SECRETARY-GENERAL, UNITED NATIONS: No nation can make itself secure by seeking supremacy over others. We all share responsibility for each other's security, and only by working to make each other secure can we hope to achieve lasting security ourselves.

(END VIDEO CLIP)

M. O'BRIEN: Annan is a harsh critic of President Bush's decision to invade Iraq.

Secretary of State Condoleezza Rice called the speech a "missed opportunity."

S. O'BRIEN: Another twist in the E. coli investigation to tell you about. Now nearly 400 cases in the Northeast. That's according to federal officials who are quoted in today's "New York Times."

Fed say green onions are not the source after all. In fact, it turns out the tests that implicated scallions, conducted first by Taco Bell and then confirmed by New York State health officials, was wrong.

White onions have now tested positive with a different E. coli strain, one that's not linked to any illnesses so far. Green onions still off the menu, though, at Taco Bell while health officials try to sort it out.

And first it was Iowa. Now neighboring Minnesota is looking into a possible E. coli outbreak at Taco John's. That's a chain that's not related to Taco Bell. Preliminary tests came up positive, and now Minnesota health officials are testing to see if there's any kind of link with the cases that are in Iowa.

In Miami, the world's largest cruise ship, the Freedom of the Seas, schedule to sail again today. This time they're bringing along two extra doctors and 45 more cleaning workers on board. Last week, an outbreak of the norovirus infected 108 passengers. The trip before that, 380 people got sick. Well, now the ship's been scrubbed again from stem to stern.

M. O'BRIEN: Have you heard of a sundown town? They are places in America where blacks are not welcome after dark. And this is not just a sad chapter in history. Tonight on "PAULA ZAHN NOW," a special hour-long look at this brand of racism.

CNN's Keith Oppenheim went to one sundown town in Texas.

(BEGIN VIDEOTAPE)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice over): Take a ride to Vidor, Texas, and you'll find a town that looks like many others in America, but just below the surface you'll soon find this small city of 11,000 people carries a dark past.

They were trying to live down something from 40 to 50 years ago.

OPPENHEIM: Forty to 50 years ago, Vidor had a reputation as a sundown town, where it was said African-Americans were warned not to be caught after dark. Charles Jones lives in Beaumont, the bigger city 10 minutes from Vidor. He told us when he was 19, a Vidor policeman intimidated him and his friends when their car broke down at night.

CHARLES JONES, BEAUMONT, TEXAS: He said, "Well, let me tell you something. You boys better hurry up and get out of here, because I'm going to go to that next exit and come down and come back around. And you'd better be gone."

OPPENHEIM: Vidor also had a reputation as a haven for the Ku Klux Klan. To this day, many African-Americans in the area keep their distance from Vidor.

WALTER DIGGLES, DEEP EAST TEXAS COUNCIL OF GOVERNMENTS: They think that that's a racist town and when you go through Vidor, you'd better be very careful. And most blacks still refuse to stop.

OPPENHEIM (on camera): Is this a racist community?

UNIDENTIFIED MALE: Definitely not.

OPPENHEIM (voice over): Orange County commissioner Beamon Minton and Vidor mayor Joe Hopkins spoke to me about perceptions of Vidor.

MAYOR JOE HOPKINS, VIDOR, TEXAS: The vast majority of our citizens are not racist, would welcome anybody here who's a good solid citizen.

BEAMON MINTON, ORANGE COUNTY, TEXAS, COMMISSIONER: We don't have a klan. We haven't had a klan here in about 30 years.

OPPENHEIM: Several Vidor residents told me they'd welcome blacks, as did this woman. Then she added...

PEGGY FRUGE, VIDOR, TEXAS, RESIDENT: I don't mind being friends with them, you know, talking and stuff like that. But as far as mingling and eating with them and all that kind of stuff, I mean, that's where I draw the line.

(END VIDEOTAPE)

M. O'BRIEN: You can see Keith Oppenheim's full report on "PAULA ZAHN NOW." It's a special tonight, "Skin-Deep: Racism in America," tonight, 8:00 Eastern.

S. O'BRIEN: You'll want to stick around. If you're traveling today, Chad's got your full forecast coming up next.

Also, stranded and alone. Stormy weather is stranding three climbers on Mt. Hood. More snow is moving in.

We've got the latest on the search when AMERICAN MORNING returns.

(COMMERCIAL BREAK)

M. O'BRIEN: Happening this morning, Chile marks the death of a dictator accused of mass murder. A military funeral for Augusto Pinochet starts in a couple of hours.

And a developing story in Australia, where brushfires are burning across four Australian states. Hundreds of acres of land burned, with more than a dozen homes destroyed there -- Soledad.

S. O'BRIEN: A tragic ending to a story that we've been following for you. Wayne and Dianne Guay, who have been missing for five days while they were driving from South Carolina to visit their children in New York were found dead in their car near Rocky Mount in North Carolina.

(BEGIN VIDEO CLIP)

JESSICA GUAY, DAUGHTER: They were perfect people. We always said we loved each other. We gave each other hugs. And I'm thankful that god gave them to me for 27 years.

(END VIDEO CLIP)

S. O'BRIEN: The Guays' car wound up in a swamp after it crashed through a divider, plunged down an embankment. They're still looking into the cause of that accident.

A desperate search on the West Coast to tell you about as bad weather is moving in. Three climbers are stranded on Mount Hood. They've been stuck there nearly a week.

More now from Amy Frazier, who's with our affiliate KOIN.

(BEGIN VIDEOTAPE)

AMY FRAZIER, REPORTER, KOIN (voice over): The three missing climbers left their SUV at a parking lot at Cooper Spur Wednesday with a note inside.

UNIDENTIFIED MALE: So we had a little information on their route.

FRAZIER: The note says they planned to go up Mount Hood on the north face and come down the south side to Timberline by Saturday. In an emergency, they said they would return down the north side to the Cooper Spur area.

UNIDENTIFIED MALE: You have to be positive. I mean, you know, if we weren't, we wouldn't be doing this. We always hope that we're going to find those people.

FRAZIER: More than 20 searchers traveled by snowcat from Cooper Spur 10 miles in to a base camp. Searchers climbed to the 8,500-foot level, battling whiteout conditions, 85-mile-an-hour winds and heavy snow trying to find the men.

UNIDENTIFIED MALE: Well, I mean, their biggest danger is hypothermia, you know, and the weather. Same as ours. You know, they're hungered down. And, you know, at some point if we don't find them, that's -- the hypothermia takes over and we need to -- we need to find them.

FRAZIER: Authorities say James Kelly of Texas used a cell phone to call his family Sunday saying he was stranded in a snow cave about at 11,000 feet and the other two men went for help.

UNIDENTIFIED MALE: The way that it came across is he was below the summit on the north side. There was some indications that he was injured, and so we don't know exactly.

FRAZIER: The two climbers who went for help are Brian Hall of Texas and Jerry Cook of New York.

UNIDENTIFIED MALE: I think they set out to do this in a short period of time. They did have -- they did have gear, but I don't think -- you know, that gear obviously is for a certain amount of days. They've been up longer than that now, so...

(END VIDEOTAPE)

S. O'BRIEN: That was Amy Frazier of our affiliate KOIN reporting -- Miles.

M. O'BRIEN: Rough weather out there. Chad Myers at the weather center watching that, and the rest of the nation.

Hello, Chad.

CHAD MYERS, CNN METEOROLOGIST: Very rough weather. Good morning, Miles.

(WEATHER REPORT)

M. O'BRIEN: Eight hundred thousand people exposed. Up next, a huge sesecurity breach leaves a university red-faced and its students' personal information out in the open.

Also, this one gives new meaning to the worlds "outsourcing education." More parents turning to tutors in India to teach their kids.

And "The Big Cheese" no more. Wisconsin could be in danger of losing it's cheesy title.

AMERICAN MORNING coming right back.

(COMMERCIAL BREAK)

M. O'BRIEN: Welcome back. Let's take a look at the news grid and see some of the feeds we're looking at today.

Lower right of your screen, there's the White House. The president today once again listening to additional advice as he tries to chart a new strategy for the war in Iraq.

In the afternoon he'll talk to Iraq's vice president, Tariq al- Hashimi, who visits the Oval Office. He'll also have a teleconference with U.S. ambassador in Iraq Zalmay Khalilzad.

Take a look at NASA TV, incoming 12. That's an animation of the space shuttle and the International Space Station as they travel above us, above 220 miles above the planet, traveling 17,000 miles an hour.

They docked yesterday. Today will be spacewalk number one. They'll attach a two-ton piece of the truss structure which will ultimately carry additional solar arrays.

Incoming 17, we're watching Chilean TV as well today. 9:00 a.m. Eastern time, the military funeral, the military, not state funeral, for Augusto Pinochet, the former dictator. Denied the state funeral, because, of course, the accusations that he was linked to mass murder. Frankly, it's a cause for may people in Chile for celebration, the passing of Pinochet, given his tore torturous reign -- Soledad.

S. O'BRIEN: Thank you, Miles.

Happening "In America" this morning in West Virginia, there's concern and also frustration from the relatives of those 12 men who were killed in the Sago Mine disaster back in January. They're demanding some additional details from the final report that was prepared for release this week by safety investigators. Newly released photos show the damage that was caused by the methane explosion that investigators think was set off by a lightning strike and the area where the 12 workers barricaded themselves after the explosion to wait for rescue that never came.

In California, UCLA is plugging a security breach in its computer system. One of the largest ever at an American university. Hackers broke into the university's database, gained access to information on about 800,000 students, former students, faculty members. UCLA is going to be sending out letters to everybody who's been affected.

In Texas, a prison delay for the former Enron CEO, Jeff Skilling. Skilling was scheduled to start his 24-year sentence today for fraud and conspiracy in the Enron collapse. Well, Skilling's appealing his conviction and the court's granting him a delay while it considers whether or not to let him stay out on bail.

In Illinois, outsourcing tutors, believe it or not. Parents are hiring India-based -- well, that would be Senator McCain. I'm not sure what he's talking about, but maybe we can bring you that story in just a moment.

Let me tell you about the tutoring story, can I?

M. O'BRIEN: I don't think he's outsourcing...

S. O'BRIEN: No. And he's not from India either.

But there are, believe it or not, online tutors, and they're doing it for a fraction of what a homegrown here in the United States tutor would cost. Users say an online session with an Indian tutor is about 50 percent of what a tutor here in the United States would be. California about to make Wisconsin a second-rate cheese power, believe it or not. Last year, California produced 2.1 billion pounds of cheese, compared to Wisconsin's 2.4 billion. Industry watchers say it is just a matter of time before California takes over as the big cheese of cheese makers.

M. O'BRIEN: Wow. Congratulations -- wow.

S. O'BRIEN: People fight over those things. It's a very big title. What would you do with the cheese heads?

M. O'BRIEN: What are they going to do with the -- they'll still wear them, I'm sure. All right.

Accusations, allegations and speculation. Now the push is under way to uncover every detail about the death of Princess Diana.

We'll have the latest for you next.

(COMMERCIAL BREAK)

S. O'BRIEN: Breaking news out of Iraq this morning. At least 60 people are dead, nearly 200 injured after two suicide bombings overnight.

And the E. coli now in Minnesota, and at a different fast-food chain. White onions, not green ones, testing positive for E. coli in the Taco Bell outbreak as well.

Dubai Ports getting out of the U.S.

Ali Velshi is "Minding Your Business" with this story this morning.

Hey, Ali. Good morning.

ALI VELSHI, CNN CORRESPONDENT: Hey. Good morning, Soledad.

You'll remember, of course, a few months ago Dubai Ports World acquired PNO, another shipping company. PNO operated a number of U.S. ports and marine operations.

This uproar got all the way up to the White House. And Dubai Ports World, the company that had acquired PNO, agreed to sell its U.S. assets. And it looks like we are almost here.

Dubai Ports World agreed to a deal to sell its U.S. ports and marine operations to AIG, the insurance giant. So they'll be selling ports in New York and New Jersey, Philadelphia, Baltimore, Tampa, Miami and New Orleans. They've also got some stevedoring operations along the East Coast of the United States that it will sell, and a passenger terminal in the United States.

Now, those assets were said to be worth about $700 million, but there hasn't been a price to this deal that has been disclosed. All we can probably say is that they will be the best insured ports in the world, given that AIG is operating them.

Dubai Ports World is the world's biggest port operator. It has 51 marine operations in about 24 countries. So this could be near the end of this -- this whole thing.

It's still going to need approval by regulatory authorities, by the U.S. government. But given all of the problems that this deal had last time, it doesn't look likely that there'll be any hitches in this deal. So Dubai Ports World selling its marine operations to AIG, the insurance company -- Miles.

M. O'BRIEN: Here's a look at what CNN correspondents all around the world are covering today.

(BEGIN VIDEOTAPE)

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

Palestinian president Mahmoud Abbas has deployed his security forces at key points in Gaza a day after unknown attackers gunned down three young sons of a senior intelligence officer loyal to the Palestinian president. The killings come at a time of intense tensions between Abbas' Fatah movement and their rivals in the Palestinian militant group Hamas, which denies any involvement in the attacks.

They also come at a time when the Palestinian president is considering calling for early elections. Hamas, which controls the Palestinian Authority, warns that such a call amounts to an attempted coup d'etat.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT (voice over): I'm Paula Newton in London, where the conspiracy theory surrounding Princess Diana's death just refused to go away. In recent days, British media reports have said that the United States was bugging Princess Diana's phone calls on the day she died. In a rare statement, the National security Agency has commented that they did not target Princess Diana, and any information they have on her phone calls was incidental.

In the meantime here, they are awaiting the results of an inquiry, three years of more investigation into how Princess Diana died. That report will be released on Thursday.

(END VIDEOTAPE)

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

The next hour of AMERICAN MORNING starts right now.

S. O'BRIEN: We begin with breaking news out of Iraq. Two suicide bombings overnight. At least 60 people are dead. Will President Bush be ready to announce a new way forward by the end of the year?

M. O'BRIEN: Tragic discovery. That missing couple found dead off of a major highway. Now their loved ones have tough questions for police.

S. O'BRIEN: And E. coli outbreak. A new state now reporting a possible case. And new concern with positive tests on white onions, not the green ones.

M. O'BRIEN: And the trees have landed again at Seattle airport. The lawsuit threats are trimmed and so are the Christmas trees on this AMERICAN MORNING.

S. O'BRIEN: Welcome back, everybody, Tuesday, December 12th.

I'm Soledad O'Brien.

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

Thanks for being with us.

S. O'BRIEN: All right. Let's begin in Baghdad this morning.

A suicide bomb targeting Iraqis who were waiting in line for jobs. At least 60 people are dead, 200 hurt.

President Bush holding a teleconference with military commanders and the U.S. ambassador to Iraq, Zalmay Khalilzad. Mr. Bush is also going to meet with the Iraqi vice president. That's all happening at the White House today.

Well, a new CBS poll shows that only 15 percent of Americans say the U.S. is currently winning in Iraq. That number, by the way, is an all-time low.

Let's get right to CNN's Cal Perry. He's live for us in Baghdad.

Good morning, Cal.

CAL PERRY, CNN CORRESPONDENT: Good morning to you, Soledad.

This was a very, very powerful explosion going off at the break of dawn, right about 7:00 a.m. in downtown Baghdad. The explosion about a mile from where I'm standing, and it shook our bureau quite heavily. At this point, Iraqi police saying at least 60 people have been killed, some 200-plus others wounded.

Now, we understand that the target and most of the victims were actually day-laborers. Unemployment here is a massive concern, falling somewhere between 20 and 60 percent.

We understand a man in a pickup truck motioned for those day- laborers to come over, offering them work. When the crowd gathered around his truck he then exploded over 200 kilograms of explosives.

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