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U.S. and Iraqi Troops in Battle for Holy City of Najaf; Bombing Kills 3 in Israeli Resort Town; Hillary in the Heartland; U.S. Military Report Reveals Major Iranian Military Role In Iraqi; Secretary Gates Issues A Clear Warning To Iranian Combatants

Aired January 29, 2007 - 08:00   ET

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


SOLEDAD O'BRIEN, CNN ANCHOR: Deadly firefight. U.S. and Iraqi troops in a battle for the holy city of Najaf, with new concerns that U.S. troops might not come home any time soon.
MILES O'BRIEN, CNN ANCHOR: Growing threat. Evidence Iran is now trying to increase its influence in Iraq, stirring up new security concerns for the U.S.

S. O'BRIEN: And the race for 2008. Hillary Clinton out to an early lead in the presidential race, but still behind one candidate, in at least one state. We're going to talk with him ahead on this AMERICAN MORNING.

M. O'BRIEN: Good morning to you, Monday, January 29th.

I'm Miles O'Brien.

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

Thanks for being with us.

M. O'BRIEN: We begin with Iraq, and here's what's new.

At least five people killed after overnight bombings in Baghdad. And this just in from Najaf: Reports the leader of an insurgent group among the hundreds of rebels killed in a showdown with U.S. troops.

Insurgents apparently planned to storm Najaf and kill Shiite pilgrims and clerics celebrating a religious holiday. Two U.S. soldiers also killed in that firefight when their helicopter was reportedly shot down. That comes from Iraqi officials.

Let's get right to CNN's Arwa Damon, live from Baghdad with the latest -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Good morning, Miles.

And we just got off the phone with a senior Iraqi police officer in Najaf saying that currently the final sweeps and searches were under way. He described the battlefield as one that was strewn with the bodies of killed gunmen. He also said that they were currently interrogating those that had been detained and wounded in this firefight that began early Sunday morning.

(BEGIN VIDEOTAPE)

DAMON (voice over): A snapshot of the battle's intensity captured on a cell phone camera. A fierce firefight between hundreds of gunmen and U.S. and Iraqi forces just a few miles north of the holy Shia city of Najaf.

That plume of smoke is believed to be coming from the wreckage of a U.S. helicopter. The U.S. military confirmed that the two servicemen on board were killed. It all began just before dawn.

Police in Najaf received tips some 150 gunmen were amassing north of the city, preparing for an attack on Tuesday, the day that Shia from across the country would be observing Ashura, the holiest ritual in Shia Islam. The tipsters told police the men were plotting to kill pilgrims and Shia clerics, including Grand Ayatollah Ali al-Sistani, the most revered Shia religious cleric in the country.

Reaction was swift, and the enemy they found surprised them. Estimates of up to 600 insurgents described by police as a mix of extremists, thugs, and criminals dug in fighting positions with sophisticated military techniques and modern weaponry. All signs of a well-planned operation and a well-funded enemy.

The Iraqi military and police force sustained a number of casualties and were forced to withdraw in the face of the enemy, calling the Americans for help. U.S. forces responded with both ground and air support. Based on the intensity of the battle and the ongoing bombardment of the area, Iraqi officials are estimating some 250 to 300 gunmen were killed.

(END VIDEOTAPE)

DAMON: U.S. and Iraqi officials have been bracing themselves for some sort of major attack against the Shia community for quite some time now. And they do remain on the lookout for any other sort of plots targeting Shia pilgrims, clerics, and religious sites, but really, the sheer magnitude of this one has been shocking -- Miles.

M. O'BRIEN: Arwa, you say they're well-funded and they're sophisticated. Who is funding these Sunni insurgents?

DAMON: Well, Miles, that is still to be determined. In fact, exactly who these fighters are remains to be determined.

Oftentimes this information does not come out until the dust has settled from the battlefield. But they are being described as a mix of Sunni insurgents, foreign fighters, fighters from places like Ramadi and Falluja, criminals, gangs, as well as members of a messianic cult that is trying to accelerate the chaos so that they can then accelerate the return of Mehdi, whom they believe is their savior.

In terms of funding, what we have seen in the past throughout Iraq is that funding can come from a number of sources. Some of it comes from inside Iraq. Some of it comes from smuggling of oil. Some of it comes across Iraq's borders from neighboring countries, such as Iran and Syria -- Miles.

M. O'BRIEN: Arwa Damon in Baghdad.

Thank you -- Soledad.

S. O'BRIEN: Happening this morning, Iran is planning a move into Iraq, sticking a thorn in the side of the U.S. Iran's ambassador to Iraq tells "The New York Times" his country is going to help Iraq with both security and rebuilding. U.S. forces are going after Iranians inside Iraq whom they say provided help in attacks against American forces. And Iran is offering a package of economic aid, including a bank branch right in the heart of Baghdad.

House Speaker Nancy Pelosi and a congressional delegation are now on their way back home from the war zone. Speaker Pelosi met with the Afghan president Hamid Karzai on Sunday. She says more attention should be paid to the war in Afghanistan and supports the White House plan to send more money. Pelosi and the delegation also visited Iraq and Pakistan over the weekend.

Two hours from now in New Orleans, senators are going to be looking for answers on that slow recovery from Hurricane Katrina. The Homeland Security Committee, which includes Senator Barack Obama, are going to hear from federal and local officials, including New Orleans mayor Ray Nagin.

Three people are dead this morning in the first suicide bombing attack against Israel in almost a year. It happened in the usually quiet resort town of Eilat.

Ben Wedeman is in Jerusalem with more this morning.

Good morning to you, Ben.

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Good morning, Soledad.

Yes, that bombing took place this morning just after 9:00 at a bakery. Now, we've already heard two claims of responsibility. One from Islamic Jihad, which actually was behind the last bombing in Israel in April 2006. That bombing left 11 people dead.

The other group claiming responsibility for the bombing in Eilat is the Aqsa Martyrs Brigade, which is the military wing of the Fatah movement which is loyal to Palestinian president Mahmoud Abbas. The bombing left at least three people dead, in addition to the suicide bomber himself.

Now, Israeli officials are very concerned about how this bomber actually got into Eilat. Some of them suspect he may have snuck out of Gaza into Egypt, gone down to the Red Sea, and somehow gotten into Eilat itself. And given that this is the first bombing in Israel since April of last year, many people are concerned that more could be on the way -- Soledad.

S. O'BRIEN: It could be the start of something very bad. Let me ask you a question, Ben, about this report that the White House is expected to present to Congress that Israel, in fact, may have violated its arms agreement with the U.S. in the fighting with Hezbollah over the summer.

What's been the reaction and really the fallout from this upcoming report?

WEDEMAN: Well, the Israelis have said that their use of these cluster munitions during the war with Hezbollah was legal, that they did their best to warn the civilian population to leave the areas before they were used.

Of course, the problem is that many -- there's more -- according to the United Nations, there are more than a million of these cluster bomblets still strewn around southern Lebanon. Thirty people have been killed by these bombs, 181 wounded.

Now, the Israelis, however, are conducting an investigation, they announced today, into the use of the cluster bombs because it's well known that the chief of staffer, Dan Halut (ph), who has now, of course, resigned, did object to the use of -- or at least the extensive use of these cluster weapons. So an investigation is going to be held into that, but there is the possibility, Soledad, that the United States will suspend the provision of cluster munitions to Israel, something that it did in 1982 following the Israeli invasion of Lebanon.

But what's significant, of course, is that in the meantime, Israel has become a major manufacturer and exporter of cluster weapons, and one of its main markets is the United States -- Soledad.

S. O'BRIEN: So if the U.S. suspends the weapons, well, it probably won't have much of an impact there.

Ben Wedeman for us this morning in Jerusalem.

Thank you, Ben, for the update -- Miles.

M. O'BRIEN: Presidential politics now. The first voting may be a year away, but the candidates are campaigning hard, jockeying for attention and money. Or at least most of them.

The Hillary Rodham Clinton campaign descended on Iowa over the weekend, and the former first lady drew huge crowds and at least one big laugh.

CNN's Candy Crowley is on the trail.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice over): Giuliani courts New Hampshire. Richardson worked Reno. Kucinich takes his heart to San Francisco. And former governor Mike Huckabee joins the Republican roster.

The '08s were out in force this weekend, but the greatest of forces was a Hillary-fest in Iowa.

SEN. HILLARY RODHAM CLINTON (D), NEW YORK: Woe. Thank you.

CROWLEY: Election eve-size coverage and standing-room-only crowds, mostly adoring crowds with the occasional tough question: How, she was asked, having voted for the war does she propose to end it?

CLINTON: The president has said this is going to be left to his successor, and I think it's the height of irresponsibility, and I really resent it. This was his decision to go to war. He went with an ill-conceived plan and an incompetently-executed strategy, and we should expect him to extricate our country from this before he leaves office.

(APPLAUSE)

CROWLEY: From the theaters, to the banners, to the lighting, this is a campaign in full swing, where celebrity status brings in the crowds and little is left to chance. All of which makes one odd moment all the odder. The question was about her ability to stand up to dictators.

CLINTON: And in the gentleman's words, we face a lot of evil men. You know? People like Osama bin Laden comes to mind. And what in my background equips me to deal with evil and bad men?

CROWLEY: Why were they laughing, and what did she have in mind? She bristled at the suggestion it was her husband.

CLINTON: I thought I was funny. You know, you guys keep telling me, lighten up, be funny. You know, I get a little funny and now I'm being psychoanalyzed.

CROWLEY: Whatever, mostly this was a flawless maiden voyage for the senator from New York.

CLINTON: Thank you all very much.

CROWLEY (on camera): And this coming weekend, the senator from New York sets sail again, this time for New Hampshire, for her first visit there since announcing her presidential intentions.

Candy Crowley, CNN, Davenport, Iowa.

(END VIDEOTAPE)

M. O'BRIEN: And remember, CNN is the place to see the first presidential candidate debates of the season, April 4 and 5. Put it on your calendar, live from New Hampshire.

And coming up in just a few moments, we'll talk with Democratic presidential candidate John Edwards -- Soledad.

S. O'BRIEN: Happening in America this morning, a setback for Kentucky Derby champion Barbaro. Doctors inserting now two steel pins into that broken hind leg. Barbaro's other hind hoof is still recovering from laminitis from the uneven weight balance on his legs. Doctors say if Barbara gets laminitis in any other hoof they may have to stop treatment and even possibly put Barbara down.

In California, a 70-year-old hiker that was attacked by a mountain lion was rushed to intensive care over the weekend. Jim Hamm is recovering from a torn scalp after that mountain lion attack. His wife Nell used a log and a pen, which she stabbed the mountain lion with. She fought back and was able to save Jim's life.

In Muskego, Wisconsin, here's kind of a crazy story. A news van is now sitting halfway under water. Yes, that's it right there.

The crew decided to drive on to a lake, and the ice suddenly gave way, and it sank them right into the freezing water. Everybody, fortunately, escaped without injury. The story they were working on? The dangers of thin ice.

Come on, guys.

M. O'BRIEN: You knew that was coming.

S. O'BRIEN: Think it through.

M. O'BRIEN: They be the former crew. Right? They have some explaining to do to the boss there, that's for sure.

S. O'BRIEN: Oh, thank goodness they're all right.

In New York, rolling out the red carpet for Charles and Camilla. Former vice president Al Gore presented the prince with an award to honor his commitment to the environment.

Earlier in the day, the prince visited a school in Harlem, shot some hoops. Missed one, made one.

M. O'BRIEN: It's not his game.

S. O'BRIEN: It's not his game. His game is to be royalty, and he did that swimmingly.

M. O'BRIEN: Yes, he did. He does that well.

Get ready for a bitter cold start to the week. Chat Myers tells us how long the deep freeze will last.

Also, the race for the White House. We're going to talk with former senator and former vice presidential candidate John Edwards about his fight for Iowa and the rest of the country.

There he is live, getting ready.

And a classified report is about to be released on the role Iran may be playing in Iraq.

That's ahead on AMERICAN MORNING.

Stay with us for more.

(COMMERCIAL BREAK)

S. O'BRIEN: The most news in the morning is right here on CNN. Here are some of the stories on our radar right now.

A congressional committee goes on the road to New Orleans this morning for a progress report on just how things are going in hurricane relief for the folks down there who were hit hard by Hurricane Katrina and Hurricane Rita.

And I-69, which is north of Detroit, east of Flint, back open after a 20-car pileup which was caused -- look at those pictures -- caused by whiteout conditions there.

Just about four past the hour. If you are heading out the door, let's get a quick check of the traveler's forecast from Chad.

Hello, Chad. Good morning again.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.

(WEATHER REPORT)

M. O'BRIEN: In Iowa this morning, they're recovering from Hurricane Hillary. The former first lady blew in for her first visit to the crucial caucus state as a presidential candidate. She was met with big, enthusiastic crowds.

Our next guest is among the other candidates out there who can only wish for that kind of attention. Democratic presidential candidate John Edwards joining us now from Raleigh, North Carolina.

Or are you in Chapel Hill? Which one?

JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: I'm in Chapel Hill.

M. O'BRIEN: Chapel Hill. My apologies. We had that wrong there.

Good to have you with us, Senator.

Hillary Rodham Clinton in Iowa. Huge crowds, overflow crowds, $14 million in the bank.

How much do you have in the bank, by the way?

EDWARDS: I'm not telling.

M. O'BRIEN: You're not telling.

(LAUGHTER)

M. O'BRIEN: Give me a hint. A little south of $14 million, I'm guessing, right?

EDWARDS: Well, we just started raising money about a month ago, but the fund-raising seems to be -- seems to be going very well.

M. O'BRIEN: It does?

EDWARDS: Yes.

M. O'BRIEN: I mean, there's not a lot of oxygen left out there between Hillary Clinton and Barack Obama and all the attention they're getting on the fund-raising front, right?

EDWARDS: Well, you are talking about Iowa. I was in Iowa just a few weeks ago and we had huge overflow crowds in Iowa. And having spent a lot of time there -- it wasn't the first time I had been to Iowa -- what I learned from being in Iowa before is that the fact that you have huge overflow crowds means that people are there checking you out. It doesn't mean they're for you, and this is going to be a long, very difficult evaluation process that voters in Iowa will go through.

Here at the beginning, I started at a very good place. All the public polls showed me with a significant lead in Iowa. But -- but, that's just the beginning. And they're going to take a hard look at all of us.

M. O'BRIEN: Let me ask you, though, if you feel like you are in a little bit of a difficult place. You're not considered a frontrunner necessarily. And you are too well known to be a dark horse. You are kind of in the middle.

Is that a difficult place for a candidate to be?

EDWARDS: I kind of like where I want to be. You know, I'm very proud of where I am.

I've got a lead in Iowa. I'm in basically a tie in New Hampshire, which is the two places that, at least in the past, have been the most critical in the nomination process.

You know, when you look at the national polling of, you know, Senator Clinton, Senator Obama, me against senators McCain and Giuliani, I'm beating McCain nationally, I'm beating Giuliani nationally. But that's all -- that's all a bunch of noise. I mean, what really is going to matter is, over the course of the next year, plus, people will get a chance to look at the differences between the candidates on Iraq, on healthcare, on energy, the things that really matter for this country.

M. O'BRIEN: I want to ask you a question about Barack Obama. This go-around, a lot of people who are criticizing him are saying he's too much of a rookie, only a couple of years in the Senate. And that's actually a similar bit of criticism that you faced. You had a little more experience in the Senate when you were running for vice president, ultimately.

EDWARDS: Yes.

M. O'BRIEN: What would you say? Does he have enough experience to hold the top job in the nation? EDWARDS: I don't -- I don't know Senator Obama that well. I have done a few events with him. He's a very interesting guy, a very smart guy, has a lot of speaking ability. But I think that what will happen during the course of the campaign -- and this will be a test for him, just as it was for me the last time around -- if people will be looking for his depth, his maturity, and weather he has the kind of judgment that we need in the Oval Office.

And I think that will -- that's a test that ought to be applied to him. It was appropriate for it to be applied to me last time around.

M. O'BRIEN: So do you think he has it?

EDWARDS: I don't know. I think that's what we're going to find out during the course of this campaign.

M. O'BRIEN: All right. Let's talk about the war in Iraq. Senator Clinton talking about that yesterday.

Let's listen to what she had to say about this notion of cutting off funding to the troops. Listen.

(BEGIN VIDEO CLIP)

CLINTON: I also am not ready at this point to cut funding to American troops. I'm not going to do that. I am not going to because I know...

(APPLAUSE)

CLINTON: ... from talking to a lot of our young men and women we still haven't been giving them the equipment that they need.

(END VIDEO CLIP)

M. O'BRIEN: Now, you differ from the senator on this issue, don't you? You think there should be some funds withheld. Tell -- explain the difference between your stances on this.

EDWARDS: Well, I believe we should provide the funding for the troops who are serving in Iraq, make sure they get the equipment they need and make sure you get all the support that they need. But the Congress, where Senator Clinton serves, has the power to stop the escalation by not funding the escalation.

Now, I don't know if that's what she was just talking about. Her words weren't clear to me from what I just heard.

If she is saying we should continue to fund the troops who are serving in Iraq, I agree with that. If she's saying that she wants to also fund George Bush's escalation of the war, I very strongly disagree with that.

M. O'BRIEN: Is it possible, though, to do that? Because Congress doesn't have that kind of latitude to earmark money in that -- with that much specificity, does it?

EDWARDS: Well, no, it can be done. It can be done.

In fact, Senator Kennedy has introduced legislation to do exactly that, and this kind of action has been taken by Congress before. There are historical precedents in the latter stages of Vietnam, in Lebanon, in Colombia.

That's the reason we have this constitutional separation of power. And those in the Congress, in the Senate, in the House -- and by the way, it's not just Democrats. Democrats and Republicans who believe this escalation is a huge mistake need to stand up and take action. Not just talk.

M. O'BRIEN: Democratic presidential candidate John Edwards.

Thanks for your time.

EDWARDS: Thanks for having me.

M. O'BRIEN: Soledad.

S. O'BRIEN: Well, YouTube wants to give you money. We'll tell you how the video giant could soon be sharing its mega bucks with you. We're "Minding Your Business" coming up next.

And the Oscars are looking more and more like a sure thing for a few big stars. We'll have the roundup from the SAG Awards, including at least one surprise winner.

Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: I just thought of this great idea if you're an advertiser. Say you are going to have a Super Bowl advertisement, we'll do a bunch of stories for it, and then cancel the ad. Save the money. Free ride, right?

Stephanie Elam -- 25 minutes past the hour -- just a thought.

STEPHANIE ELAM, CNN CORRESPONDENT: That is a good idea. Or you could do what else they're doing...

M. O'BRIEN: What's that?

ELAM: ... and advertise on the Internet when they're showing the advertisements from the Super Bowl after the Super Bowl is over.

M. O'BRIEN: So ads about the ads?

ELAM: Ads during the ads. Did you follow that? You get that?

M. O'BRIEN: It's getting serious (ph) now.

S. O'BRIEN: Not even a little. ELAM: OK. So here's what's going do happen.

Let's say you're Budweiser and you have a commercial during the Super Bowl. Everyone is going to want to go see which one was the best. I mean, the Super Bowl ads have taken on a life of their own.

So here's one. The crabs have got some Buds. They're happy, living it up.

So if you look at a commercial like this, people are going to log on to look at the commercials again the next day. So Web sites like YouTube, any Web site like that that's showing commercials and having these polls can show ads before they show the ads, and so they make more money off of people advertising, waiting for people to see this.

M. O'BRIEN: Wait a minute. So you have to see an ad to see an ad?

ELAM: Exactly. But you want to see the second ad. You got that?

M. O'BRIEN: Yes. I think I follow. Yes.

ELAM: But also, it's good for, let's say, NBC, which can go ahead and show ads on the Web sites that are showing the Super Bowl ads, because since the Super Bowl is on CBS, they can't show their lineup during that time, but they actually can do it online.

So it gives some people -- some companies a broader pass here.

M. O'BRIEN: They could save some money by just forgetting the football game and just do the ads.

S. O'BRIEN: Oh, I would vote for that.

ELAM: A lot of people would do that, and the halftime show. And then...

M. O'BRIEN: That's it, yes.

ELAM: Didn't it sound like the playoff games were more like the Super Bowl anyway? So...

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

ELAM: Sure.

S. O'BRIEN: I think my head hurts.

Coming up this morning, just how much influence does Iran have in Iraq? A soon-to-be released report could provide some answers to that question.

And Hillary Clinton gets a warm welcome in Iowa, but it's really John Edwards who is leading in the polls there. We'll take a look at the ever-growing list of big names who are headed toward the race in '08.

You're watching AMERICAN MORNING. The most news in the morning is right here on CNN.

(COMMERCIAL BREAK)

S. O'BRIEN: Growing threat, the U.S. is looking to release a new report showing Iran's deadly influence in the Iraq war.

M. O'BRIEN: Devastating diagnosis, a young television reporter, and mother, diagnosed with breast cancer. No family history. Before she even had her first mammogram. Her fight to survive and her life- saving message.

S. O'BRIEN: And make room on the trophy shelf. The new round of awards on the way to the Oscar race. We'll take a look, straight ahead on this AMERICAN MORNING.

Welcome back, everybody. Monday, January 29th. I'm Soledad O'Brien.

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

S. O'BRIEN: Here's what's happening this morning. U.S. troops and Iraqi forces are battling an insurgent plot near the holy city of Najaf; the plot was to kill the Grand Ayatollah Ali Al Sistani. Up to 300 insurgent forces are dead. Two American soldiers are killed, when their chopper went down, apparently from small arms fire.

In Congress today, a question about Israel's use of cluster bombs on Lebanese civilians. A preliminary report goes to Congress. Some American officials believe Israeli violated the Arms Control Act. Others, think the bombs were dropped in self-defense to stop Hezbollah rockets. Cluster bombs spread bomblets over a wide area, typically are used against tanks. The U.N. says it's found hundreds of them unexploded in southern Lebanon.

In just an hour from now, in New Orleans, senators are looking for answers in that slow recovery from Hurricane Katrina. The Homeland Security Committee, which includes Senator Barak Obama, will hear from federal and local officials, including New Orleans Mayor Ray Nagin.

And former White House Press Secretary Ari Fleischer is expected to testify today at the Lewis Scooter Libby perjury trial. Fleischer is expected to contradict Libby's timeline about when he learned Valerie Plame was a CIA operative. Fleisher has a deal for immunity in exchange for his testimony -- Miles.

M. O'BRIEN: Now, the race for the White House. Candidate Clinton came to Iowa over the weekend. Hillary Clinton drawing big enthusiastic crowds, but former Senator John Edwards leads the polls there. Just moments ago I asked Edwards about Senator Clinton's stance against cutting funding to troops in Iraq.

(BEGIN VIDEO CLIP) SEN. JOHN EDWARDS (D) PRESIDENTIAL CANDIDATE: If she is saying we should continue to fund the troops who were serving in Iraq, I agree with that. If she is saying that she wants to also fund George Bush's escalation of the war, I very strongly disagree with that.

(END VIDEO CLIP)

M. O'BRIEN: Edwards hits the campaign trail today. He will be at Wake Forest University in Winston-Salem, North Carolina.

Other candidates running full tilt in the race for the White House as well. As we said, Senator Clinton campaigning in Iowa on Sunday. She was bashing President Bush on Iraq. Former New York Mayor Rudy Giuliani is still testing the presidential waters, speaking to the New Hampshire Republican Party convention. Sure looks like a candidate doesn't he?

And the field keeps growing. Former Arkansas Governor Mike Huckabee says he is in it too -- Soledad.

S. O'BRIEN: More reason to worry about Iran this morning. The U.S. is about to declassify what it claims is evidence that Iranians are meddling in Iraq. Barbara Starr at the Pentagon for us.

Good morning, Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT, AMERICAN MORNING: Good morning, Soledad.

Well, U.S. officials say the attacks in Iraq are growing more sophisticated, and Iran may be one reason.

(BEGIN VIDEOTAPE)

ROBERT GATES, DEFENSE SECRETARY: If are you in Iraq and trying it kill our troops, you should consider yourself a target.

STARR (voice over): That blunt warning from the new Defense secretary singling out Iran's growing involvement in the fighting inside Iraq. The State Department says it wants to unveil classified evidence that proves just that.

SEAN McCORMACK, STATE DEPT. SPOKESMAN: Where we are in the process is taking a look at the mountain of evidence that we do have.

STARR: But much of that information is already out there if you know where to look. Earlier this month CIA Director General Michael Hayden said Iran is shipping weapons into Iraq that are killing U.S. troops.

GEN. MICHAEL HAYDEN, CIA DIRECTOR: The EFPs are coming from Iran. They are being used against our forces. They are capable of defeating some of our heaviest armor. Incident for incident, cause of more casualties than any other improvised explosive devices do, and they are provided to Shia militia. STARR: Hayden is talking about explosively formed projectiles, sophisticated manufactured explosives capable of penetrating even a battle tank. Back in November Hayden bluntly warned that Tehran was stepping up its supply chain to Shia militias inside Iraq.

HAYDEN: The provision of them -- to them of capabilities that have been used against the coalition.

UNIDENTIFIED MALE: Absolutely.

HAYDEN: Has been quite striking.

STARR: There is more. U.S. officials say in recent raids in Iraq they detained suspected Iranian operatives and found IEDs, rifles, mortar launchers, weapons with Iranian markings, maps, and shipping documents. They also say two suspects were senior members of the Iranian Revolutionary Guard. And there's further evidence still.

GEN. JOHN ABIZAID, U.S. CENTRAL COMMAND: It's clear that money is coming in through their intelligence services, training is probably being conducted inside Iran through various surrogates and proxies.

(END VIDEOTAPE)

STARR: Soledad, the Iranian government, of course, denies these allegations, but the U.S. military says they have the evidence in hand -- Soledad.

S. O'BRIEN: Let's talk about what brought down this chopper. Do we know at this point yet, Barbara?

STARR: Well, this incident yesterday in Najaf now U.S. military officials are telling CNN that all initial indications are this chopper, which killed two service members, was brought down by small arms fire during this heavy fighting near Najaf.

This is an extremely disturbing development to the U.S. military, Soledad. This would now make the third helicopter brought down apparently by hostile action in a week. Of course, that Blackhawk helicopter, last weekend, 12 people losing their life in that. All indications were that was a shoulder-fired missile.

Then there was the civilian helicopter over Baghdad owned by the Blackwater Security Company. Several people killed in that incident, which also was believed to involve small arms fire. And now this. The third helicopter down in just over a week. The third likely brought down by hostile fire -- Soledad.

S. O'BRIEN: Barbara Starr at the Pentagon for us. Thank you, Barbara.

Happening in America this morning, in Kennet Square (ph), Pennsylvania there's been a setback for Kentucky Derby champion Barbaro. Doctors inserting two steel pins into that broken hind leg. Barbaro's other hind hoof is still recovering from laminitis from the uneven weight balance that's been on his legs. Doctors say if he gets laminitis in any other hoof they might stop treatment and might have to put him down.

A fertility clinic in California is investigating how a 67-year- old woman from Spain became the world's oldest new mother. Now, she looks -- well, there are baby boys she just had. Carmella Bustada (ph) admits she lied about her age. She's 67. She told them she was 55, because that was the cutoff. She looks pretty good for 67, but, she gave birth late last month to twin boys.

In Miami, who is the man who chases down alleged hit-and-run drivers? It's Shaq. I feel like I should be accompanied by music when I say that. Shaquille O'Neil, is who we are talking about, not Shaft -- Shaq --

M. O'BRIEN: We need Isaac Hayes for this.

S. O'BRIEN: Thank you. Maybe you can help me out on backup here.

He allegedly crashed into Shaq's Escalade, and he was not happy about it, so he ran him down and eventually helped catch him. Shaq, of course, is not only an NBA star, but he is also a reserve officer for the Miami Beach Police Department. That's what he wants to be, when he retires. He wants to be a full-time law enforcement official.

San Francisco now. A 70-year-old hiker who was attacked by a mountain lion whose condition is actually worsening, and he is back in intensive care this morning. The lion damaged part of his scalp. You can see there, Jim Hamm. His wife used a log and a pen to fight back and save her husband. Really miraculous, and hopefully he'll be back on the road to recovery.

In Michigan interstate 69 in La Pier Township is back open this morning after a 20-car pile-up and a blinding snowstorm. Take a look at these pictures. What a mess. At least a dozen people were hurt in that.

In Los Angeles a tragic find on board a British Airways jet. The body of a young man was discovered in the wheel well of a 747. The FBI believes that the stow-away died during the intercontinental flight. Probably of suffocation and hypothermia. An investigation is now underway to determine just exactly where the stow-away got on the plane.

M. O'BRIEN: Wow, good thing he wasn't a terrorist.

S. O'BRIEN: Oh, my gosh.

In Florida, it came out of the sky, crushed a man car in Tampa. Look at that. That was the damage that was done. It was 100-pound block of ice that fell from somewhere. Nobody really knows where. Landed right in the back seat of the Ford Mustang. No explanation yet except the possibility that it came from a passing jet.

M. O'BRIEN: A crushing diagnosis and a courageous battle. A young woman sheds new light and gives hope to women who fight an all too common battle. We'll meet her in just a moment. And new hardware, same recipients. In the run-up to the Oscars, there are some clear favorites. We get the award for the most news in the morning. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back. Health news this morning.

Researchers looking into narcolepsy, the disease that makes people suddenly fall asleep. May have found something that also could help insomniacs, people who can't sleep. Swiss drug makers saying they're having success with a drug that turns off rexin (ph) Never hear of rexin (ph), well, essentially it is what keeps you awake.

The drug could help people who haven't had success with other sleeping pills. Researchers say the results are preliminary, and they want to make sure that people taking new drugs don't develop any brain problems -- Miles.

M. O'BRIEN: It is about quarter of the hour. If are you heading out the door, probably right now, you better stop for a moment because Chad Myers has words for you. I think East Coast, better bundle up.

(WEATHER REPORT)

S. O'BRIEN: This morning we share with you the story of Kelley Tuthill. She is 36 years old, is the mother of two young children. She has no family history of breast cancer. Never even had to have a mammogram before. So, when her doctor found a lump in her breast, she thought it had something to do with the fact that she had been breast- feeding her new baby and that it was nothing serious.

Kelley is an investigative reporter with CNN affiliate WCVB. She discovered she had what was stage two breast cancer. She's going public with her battle. She has been keeping an on-line journal. It's very moving, and here's a little bit of that journal.

(BEGIN VIDEO CLIP)

KELLEY TUTHILL, DIAGNOSED WITH CANCER: There was no question I was going to need chemotherapy. They were talking about 16 weeks of chemotherapy. Followed by six weeks of radiation.

2007 was already decided for me. The treatment sounds daunting because it's going to take me away from my children. And it's going to make my children upset because they're going to want me to hold them, and there may be times I can't do that.

(END VIDEO CLIP)

S. O'BRIEN: Kelley Tuthill is in Boston this morning.

Nice to see you, thanks for talking with us. I know you had your surgery.

KELLEY TUTHILL, DIAGNOSED WITH CANCER: Nice to see you too, Soledad.

S. O'BRIEN: I know you had your surgery a week ago. How are you feeling? How are you doing? What's your prognosis? Fill us in.

TUTHILL: You know, the surgery went really well. I'm very pleased with the results. The surgeons were amazing. It was a three and a half hour surgery. The biggest pain has been just in my back, because the surgery was on my stomach for the reconstruction part. And I've had some back problems, a little bit of pain. But it is all very manageable. People told me I would feel like a Mac truck hit me. I think that would be worse. I'm doing OK.

S. O'BRIEN: Really? I have to tell you, you look like a million dollars. Now, I know you have to go in for the 16 weeks of chemo. When will that start?

TUTHILL: Yeah. The full disclosure I'm the only post-mastectomy patient who had a makeup artist this morning. We'll make it clear to every body out there, that maybe in a bathrobe. I'll put the bath robe on after this. Sorry, now, I forgot your question. What were you saying?

S. O'BRIEN: No. You made a good point because, you are right, of course. A little makeup goes a long way after surgery, certainly.

TUTHILL: Yeah.

S. O'BRIEN: I want to know when your chemo starts. You mentioned that you have 16 weeks of chemo you are facing. When do you start that?

TUTHILL: It's like you barely recover from this, and then I'm looking at starting chemo in probably two weeks.

S. O'BRIEN: OK. I was watching that videotape. I have seen a lot of your diary now. When you talk about your daughters, who are so little, you have a Cecilia -- and I have a daughter named Cecilia, too. You are crying. Does having small children sort of inspire you, and motivate you that, you know, you have got to survive this because you have to be there for these girls, or is it just terrifying for you?

TUTHILL: I choose to focus on the fact that I have to survive this. To me there's no other option. I look at the girls, and I -- before I went into surgery, I treated to pen down some thoughts for them. It's basically impossible. You know, they're three and they're six months. I couldn't even write a note that would prepare them for the rest of their lives. I have been to be here for the rest of their lives. That is all I'm focusing -- I know you, as a mom can relate to that.

S. O'BRIEN: I hear you on that. It was really nice, too, to see in some your diary the support you have been getting from your co- workers. Tell me about that. I mean, that's got to be really hugely helpful. Not just your co-workers, but the bosses too. TUTHILL: Everyone. I mean, from the person -- our general manager who runs the station in Boston, on down. Everybody has been supportive. The message was clear. You do what you need to do. You fight cancer. We're all here when you want to come back, but there was no pressure.

In fact, quite the opposite. I'm looking forward to working when I can because it will be a great distraction, and I love my job.

As for my co-workers, I mean, they're amazing. They wanted to do something for me. They ended up raising thousands of dollars. I'm not kidding you. To get a dining-in service so we can could get meals at home. And I was blown away by the support they've given me. Hugs, cards. Just calls at home. It's been wonderful. That's what you need. You need that support to lift you up.

S. O'BRIEN: Why are you doing this? Why put it on -- I would imagine that in a way wouldn't it be easier to not tell anybody and go and recover and not share your story, because it's got to be exhausting just to do that part of if too.

TUTHILL: Well, you know, I'm in a unique position here. My job every day is to go out and ask other people to tell their stories to me. And some of them are in even more painful circumstances than what I'm facing. I do it because I think there's a greater good to them sharing their stories. And I think I turned it around on myself. And I thought there may be a greater good here.

One, is I hope it gives a sense that it's OK. Even if you get a terrible diagnosis like mine, you can be positive about it. You can get through it. For people out there that need to be aware of this, I can raise awareness in a way that other people don't have that opportunity. I felt like it was very important that I do this.

S. O'BRIEN: You know, you talk about your co-workers being helpful, and sometimes when I think you are talking to people who are facing a really devastating diagnosis, you think, all right, I don't know what to say. I don't know what to do. Give me a couple suggestions. What do you do?

TUTHILL: What do you do? First of all, don't put that really pathetic sad face on and be sad, because that makes me feel worse in a sense. I like all the positive energy. I like people who come up to my desk, or meet me on the street and tell me, yep, my friend survived. I know this person. She's 91. She had breast cancer 30 years ago. I think being positive -- being curious.

I don't think most of us mind answering questions. Every survivor I have talked to is very open about talking about this. We don't want there to be a mystery around it. We're OK with people knowing what we're going through. We just, I think, most of us want to stay positive, because it is tough. If you think you'll get through it, then most of us will, I hope.

S. O'BRIEN: We are pulling for you, and I'm more than happy to be positive and cross our fingers for you. Kelley Tuthill, thanks for talking with us. Thanks for sharing this really important information. We appreciate it.

TUTHILL: Thanks, Soledad.

S. O'BRIEN: Miles.

M. O'BRIEN: Wish her the best. We're all pulling for her.

"CNN Newsroom" is just minutes away. Tony Harris is at the CNN Center for a look at what's ahead.

Hello, Tony.

TONY HARRIS, CNN ANCHOR, CNN NEWSROOM: Good morning.

We have these stories on the NEWSROOM rundown for you this morning.

Off campus party, on campus outrage. How offensive theme parties are challenging some colleges.

Cluster bomb controversy: Did Israeli forces use banned weapons against Hezbollah?

And, an ice storm in Florida. Well, just a chunk, really. Out of the sky and into a car. Yikes. Join Betty, and me, we get started at the top of the hour, right here in the NEWSROOM on CNN.

Miles, back to you.

M. O'BRIEN: All right. From the Chicken Little desk on that one, huh? Sky is falling. Thank you, Tony. See you in a bit.

We sure know who the favorites are to win the Oscars this year. Hollywood was patting itself on its evenly tanned back, once again, last night. The winners will be familiar to you. Our leading role is to give you the most news in the morning.

(COMMERCIAL BREAK)

M. O'BRIEN: Hollywood stars, once again, savoring themselves, this morning. The winners of the latest award fest, already some fresh hardware on the mantel. CNN's Sibila Vargas is on the red carpet, again.

(BEGIN VIDEOTAPE)

SIBILA VARGAS, CNN HOLLYWOOD CORRESPONDENT, AMERICAN MORNING (voice over): The world of film and television collided in a star- studded extravaganza at the Shrine Auditorium in Los Angeles for the Screen Actors' Guild Awards.

(On camera): While the critics have spoken about the work of such performers as Helen Mirren and Forest Whittaker, at an awards show where the winners are chosen by their fellow actors, how would their peers decide? (Voice over): Already crowned Hollywood royalty both Whittaker and Mirren continue to reign. Whittaker was honored for his outstanding performance in the lead role for "The Last King of Scotland," while Helen Mirren was chosen for "The Queen". The four- time winner was also honored for her performance as Elizabeth 1st in the television movie category.

HELEN MIRREN, ACTRESS, "THE QUEEN" AND "ELIZABETH I": It's incredibly exciting, but it's fleeting. And one has to recognize that fact as well. You know, you can't sort of hang on to it. You have to enjoy the moment, and then let it go.

VARGAS: Oscar nominees Eddie Murphy and Jennifer Hudson both took home actor statues for their supporting work in "Dreamgirls."

EDDIE MURPHY, "DREAMGIRLS": I've done all different types of movies and do something and step outside of what you do, and try to do something a little different, and for it to be well-received is -- that's a really great feeling.

JENNIFER HUDSON, "DREAMGIRLS": One we I'm -- I'm what -- winning the Golden Globe, the next week, I'm nominated for the Oscar, and winning the SAG Award in the middle of it! And then one day I'm interviewing with Oprah, the next day I'm interviewing with Barbara Walters. It's like -- ah!

ANNETTE BENNING, ACTRESS: The actor goes to the cast of "Little Miss Sunshine."

VARGAS: Perhaps the evening's biggest surprise came when the independent comedy, "Little Miss Sunshine", was honored for outstanding performance by a cast in a motion picture.

UNIDENTIFIED FEMALE: Hello. Um, I don't know. Who do you want to thank?

VARGAS: In the television categories the cast of fan favorite "The Office" was recognized as outstanding ensemble in a comedy series. The cast of "Grey's Anatomy" was recognized for their outstanding work, both as an ensemble, as well as individually. Miss Chandra Wilson taking home a statue for her work.

CHANDRA WILSON, "GREY'S ANATOMY": It's about those 10 cast members, sitting over there -- and the other one in rehab. You all just hold me together.

VARGAS: Sibila Vargas, CNN, Hollywood.

(END VIDEOTAPE)

M. O'BRIEN: Of course, the Oscar says will be handed out in Hollywood February 25th.

Here's a quick look at what NEWSROOM is working on for the top of the hour. Stay with us for that.

HARRIS (voice over): See these stories in the CNN NEWSROOM.

Battle in a snapshot. Cell phone video catches a fierce firefight with Iraqi insurgents.

A veteran hiker in the fight of his life, with a mountain lion.

UNIDENTIFIED MALE: Then he got me in the mouth, and I got my thumb in his eye, and jammed my thumb into his eye up to my knuckle.

HARRIS: How he lived to tell the tale.

Accidents piling up. A whiteout leads to chain reaction wrecks. You are in the NEWSROOM -- 9:00 a.m. Eastern, 6:00 Pacific.

(COMMERCIAL BREAK)

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