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Seized By Iran; South Pacific Tsunami; Pet Food Concerns; Sex Offender Law; Gerris' Top Tips

Aired April 02, 2007 - 10:00   ET

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


TONY HARRIS, CNN ANCHOR: Monday, April 2nd and you are in the NEWSROOM.
And at the top this hour, 15 British troops caught in the middle of a diplomatic standoff. But now there may be some movement to report. Iranian media saying videos of what Iran calls confessions by the detained troop will no longer be televised. CNN's Jim Boulden is live in London.

And, Jim, how is all of this playing out at number 10 Downing Street?

JIM BOULDEN, CNN CORRESPONDENT: Well, the British continue to say that it's outrageous that their sailors and marines are shown on television. We did see two of them on TV last night making a confession, as the Iranians call it. We saw all 15 on television this morning. But they did not show those 15 confessing, though the Iranians say they do have all 15 on camera confessing.

The British have not actually come out with any more statements than other to say it's outrageous to show what they say is a staged, managed appearance. And also say that it does not help the situation when they see these sailors on television.

But we haven't had the ratcheting up of the diplomatic tensions that we saw last week. In fact, over the weekend, we're seeing words like they want to resolve this through diplomatic means, Tony.

But I have to say, hour by hour, the tension seems to be changing. It really depends on who makes the statement. But we know a lot is going on behind the scenes. We just don't know whether it's getting any closer to being resolving.

Tony.

HARRIS: Well, Jim, over the weekend, Iranian President Ahmadinejad called the British government arrogant. Has there been any reaction to that kind of statement?

BOULDEN: We have not had a harsh reaction back from the British on that. They really are, I think, trying to take a calmer line. We had the foreign secretary, Margaret Beckett, saying that everyone regrets the positions that has arisen. Everybody regrets that this has had to happen. And we have heard the British are willing to talk to the Iranians about making sure that their sailors don't stray into their waters. But the Iranians want an apology. The British say they have nothing to apologize for.

Tony.

HARRIS: OK. Jim Boulden following the story for us. The fast- breaking developments on this story from London.

Jim, thank you.

BETTY NGUYEN, CNN ANCHOR: Well, there are also other developments in a story that we continue to follow, and that is a tiny island nation in the south Pacific which has been struck by a massive tragedy. At least 13 deaths are reported after the Solomon Islands were just slammed by two powerful earthquakes, and then a tsunami. As searchers comb through the rubble, the death toll is expected to climb.

Now I want to show you some scenes of video that was actually taken of the Solomon Islands before the quake. It is an island chain with more than 200 islands and a population of more than a half million. When the tsunami rolled ashore, entire villages were swallowed by the sea. And according to reports, waves were more than 30 feet high in some areas.

HARRIS: As Betty mentioned, as huge waves rolled over the Solomon Islands, it sent tsunami fears across other parts of the region as well. From Cairns, Australia, here's Mark Burrows with Australia's National 9 News.

(BEGIN VIDEOTAPE)

MARK BURROWS, CNN CORRESPONDENT, (voice over): (INAUDIBLE) hint of panic.

UNIDENTIFIED FEMALE: Queensland tsunami warning to people in coastal areas of Queensland.

BURROWS: The people of Cairns heading for the hills.

UNIDENTIFIED MALE: Down to Wells (ph) and pick up the kids. Safety first.

BURROWS: While schools were evacuated and patients moved to upper floors, it was as orderly as it gets.

UNIDENTIFIED MALE: They told us so evacuate low-lying areas. So we came up here.

BURROWS: The fear was a tsunami would hit Cooktown (ph) to the north first, but the deadline passed without a problem.

UNIDENTIFIED MALE: What you've got to understand is, if you get an earthquake of that magnitude, 8.1, it's possible to generate a tsunami and you really don't know for about an hour or so if it has or not.

BURROWS: The earthquake was centered 1,500 kilometers away in the Solomon Islands. Worst effected the small island of Gizo, a popular spot for Australian divers. It was hit by a three meter tsunami.

UNIDENTIFIED MALE: The buildings are badly damaged here. The waves came up probably about, say, 10 feet straight (ph) through town.

BURROWS: Australian expert Naomi Bear (ph), runs an island resort close to Gizo. This is her family making the crossing in calmer conditions. But today she rode out the tsunami in a canoe with her husband and children.

NAOMI BEAR: The adrenaline was pumping like crazy and people's possessions and dead dogs and things like that that were floating away from Gizo.

BURROWS: Naomi and her family are now sheltering in the hills above Gizo. At least 10 people have been killed in the town, while several are still missing.

BEAR: One child that was drowned that we know of and an old woman that died down in the costal where the house fell on top of her and also the waves just filled the house, so she drowned. BURROWS: Mark Burrows, National 9 News.

(END VIDEOTAPE)

NGUYEN: Chad Myers joins us now to talk about what has happened.

And, Chad, I guess the good news here is this happened during daylight, so they could at least see the waters receding.

CHAD MYERS, CNN METEOROLOGIST: They saw the water go out and they knew from the large tsunami we had years ago that when water goes out, it's eventually going to come back in. But many people just didn't even have time because this earthquake was very close to shore. A lot like the Banda Aceh earthquake.

Because this ring of fire or this area all the way from right here, all the way in the Solomon Islands, and even as far south as New Zealand, Papua New Guinea, all the way up through Japan, up across Alaska and then down the other side. That's the ring of fire. And if you're very close to where one of these earthquakes comes right on shore or very close to shore, you're not going to have any time -- you're literally not going to have even two minutes to get out of the way of this.

And it was an 8.0. And we're seeing a lot of after shocks. Some of these larger dots. Those are 6.0, 6.2. And then just a whole bunch of 5 point somethings in a couple of areas. I mean we were kind of surprised that they were so far apart.

But that's the epicenter there at about six miles deep or so. That was the epicenter of the big earthquake right there, just to the south of Gizo with those waves coming on shore.

(WEATHER REPORT) HARRIS: Death and chaos in the streets of Iraq again today. More than 100 people dead or wounded in one attack. A truck bomb exploded outside a police station. It happened in the northern Iraqi city of Kirkuk. Police say at least five people were killed there. One hundred sixteen others were wounded.

And word just this morning that the death toll from last week's suicide truck bombing in Tal Afar was much higher than originally reported. One hundred fifty-two people killed. That makes it the deadliest single attack since the start of the war.

And this from the U.S. military. Six American soldiers were killed when an improvised explosive device detonated outside southwest of Baghdad over the weekend. That raises the death toll of American troops to 3,253.

NGUYEN: Democratic House Speaker Nancy Pelosi going against the wishes of the White House by going to Syria. Pelosi plans to be in Damascus tomorrow to meet Wednesday with the Syrian president. Today, it was a stop in Lebanon to meet with officials there.

The House speaker is heading a congressional delegations on a fact-finding mission to the Middle East. Now her planned stop in Syria has drawn fire from the White House, which has refused direct talks with Damascus. Pelosi will be the highest-ranking U.S. official to visit Syria since relationships deteriorated between Damascus and Washington.

HARRIS: More pet food now facing recall. This time it's some of the Alpo prime cuts varieties from Purina. The company says some of the food contains contaminated wheat gluten from China. The rising number of recalls is raising concerns among people with pets. CNN's Sumi Das has the story.

(BEGIN VIDEOTAPE)

SUMI DAS, CNN CORRESPONDENT, (voice over): The pet food scare is causing fear, frustration and anger among dog and cat owners nationwide. Two weeks after pets began mysteriously dying, there are still few answers as to what's causing this.

ELIZABETH HENDRICKSON, PET OWNER: I'm afraid that now they're going to turn around and say, oops, it was in the dry food too.

DAN WILCOX, PET OWNER: It seemed like there was a lot of kind of stop/start, you know, false information.

DAS: As the list of tainted pet food grows and confusion spreads about what is and isn't safe for animals, many pet owners are simply being overly cautious and the uncertainty is causing headaches for pet supply owners.

Todd Warner of Tailwaggers says the FDA isn't doing enough and should require pet food manufacturers to use independent, third party testing. TODD WARNER, TAILWAGGERS: You start to wonder, OK, now it's this being affected and now it's the dry food and now it's more dates and it makes you wonder, how far does this go?

DAS: Since Menu Foods has yet to name the company which supplied the original, tainted ingredient, store keepers and pet owners can only guess what might be next.

PAUL HENDERSON, CEO, MENU FOODS: The important point today is that that source of the wheat -- the source of that adulteration has been identified and removed from our system.

DAS: Equally cryptic, the FDA, which can't confirm whether the human food chain may have been contaminated.

DR. STEPHEN SUNDLOF, DIR, FDA CENTER FOR VETERINARY MEDICINE: We can't say within 100 percent certainty at this point, but we have no indication that any of that material did go into human food.

DAS: Leaving pet owners and possibly others waiting nervously for some type of answer.

Sumi Das, CNN, Los Angeles.

(END VIDEOTAPE)

NGUYEN: Well, missing since November and now found. Tears of sadness in Red Lake, Minnesota. We have that story in the NEWSROOM.

HARRIS: Sharing the beaches in Florida. Tourists and sharks.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The second time that the shark bit me, I'm like, dad, dad, a shark bit me in the leg!

(END VIDEO CLIP)

HARRIS: Man, twice bitten and talking about it. That's ahead in the NEWSROOM.

NGUYEN: Also, check this out. Flames sweep across a southern California countryside, but now firefighters are finally getting some relief. We have that story in the NEWSROOM.

HARRIS: Forcing registered sex offenders from their homes. One New York county moves ahead with a tough, new law. Child safety zones, in the NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: You're in the CNN NEWSROOM. I'm Betty Nguyen.

Coming up, a Michigan mom in handcuffs. Now she denies it. Police say the woman offered her seven-year-old for sex and porn.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: She had indicated very clearly that that child would do whatever it was that the person that was going to meet the child wanted to do.

(END VIDEO CLIP)

NGUYEN: If true, the mother of all crimes in the NEWSROOM.

HARRIS: And good morning again, everybody. I'm Tony Harris.

Location, location, location. A new law makes it just about impossible for a sex offender to live in one New York County.

(BEGIN VIDEO CLIP)

TONY GICALONE, PUTNAM COUNTY RESIDENT: The thought of just having one so close to home, it's frightening.

(END VIDEO CLIP)

HARRIS: Moving day in the NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: It is a sad ending to a long search. Search teams have found the bodies of two young brothers who disappeared on an Indian reservation in northern Minnesota. The boys, who were two and four years old, went missing more than four months ago. Their bodies were found in a lake encased in ice about a half mile from their home. An investigation is underway.

HARRIS: And child safety zone. Heard of them? Well, they could cover virtually all of on upstate New York county. Meaning all registered sex offenders would have to move out. CNN's Jim Acosta has the story.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT, (voice over): Tony Gicalone is relieved every time the school bus drops off his 13-year-old son right in front of their home in Putnam County, New York. They live just two doors down from a registered sex offender.

TONY GICALONE, PUTNAM COUNTY RESIDENT: The thought of just having one so close to home, it's frightening.

ACOSTA: That neighbor, 36-year-old Brian Morasee, (ph) moved into his parents home up the street last summer. His parents, who didn't want to talk to CNN, say their son has repaid his debt to society -- nine years in prison for having child pornography.

But a new law in the county means Morasee may have to change his address. The law makes it a crime for state-designated high-level sex offender to live within approximately a half mile of places where children gather. The measures mean offenders would have to pack up and move if their home is too close to what the county consider as child safety zone. Those who don't face jail time.

You're in favor of this even if this man has to move out of the area?

GICALONE: Yes, I am. He chose to do it. I'm sure he knew the consequences if he ever get caught, which he did, and he has to pay. Some people say that he already put his time in, in a federal prison. What about the kids?

ACOSTA: The county executive defends the idea of forcing offenders out of their homes.

UNIDENTIFIED MALE: I think they do have rights. But, of course, the residents who live in the county, particularly families that have children, small children, are quite concerned and they have rights, too.

ACOSTA: The law would block registered sex offenders from living within 2,500 feet of schools, parks, playgrounds, even places like bowling alleys. Critics of the law say this is much more than, not in my backyard. It's more like, not in my county.

That's because just about everywhere in Putnam County is too close to one of the protected zones.

ROBERT PERRY, N.Y. CIVIL LIBERTIES UNION: The Supreme Court has said, you cannot, as a matter of retribution, banish a person as punishment.

ACOSTA: If the measure survives court challenges, Robert Perry, with the New York Civil Liberties union, warns it would have unintended consequences.

PERRY: And essentially attempts to export the problem to the next county or it drives people underground where it's going to be much more difficult for probation officers and sex offender management experts to monitor, to supervise, to treat.

GICALONE: My son can't go outside without my wife and I keeping an eye on him. And my daughters too.

ACOSTA: Tony Gicalone's looking for some peace of mind. Something he says he can't have with a registered sex offender in the neighborhood.

Jim Acosta, CNN, Brewster, New York.

(END VIDEOTAPE)

NGUYEN: Here's more videotape of British captives. Iran says all 15 have confessed to trespassing.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I can understand why you are so angry about our intrusion into your waters. (END VIDEO CLIP)

NGUYEN: More than a week into this international face-off and still no end in site, in the NEWSROOM.

GERRI WILLIS, CNN CORRESPONDENT: I'm Gerri Willis. The tax deadline is just two weeks ago. How to avoid those costly last-minute blunders. That's coming up next in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Betty, what d you say we take folks over to the New York Stock Exchange and check the big board.

NGUYEN: Oh, we didn't see that earlier.

HARRIS: No, we did not see that. OK. But here's the story though. You know, stocks actually slumped a bit last week after reports showed a big decline in new home sales, weaker consumer confidence. We're wondering if there might be a little bit of carry- over into this week.

Here, so far, as you can see, the Dow is down 12. It was down almost 20 a moment ago. The Nasdaq is down a little over nine. We will check all the business headlines with Susan Lisovicz a little later this hour right here in the NEWSROOM.

NGUYEN: OK. Taxpayer blunders. They could cost you a bundle. So you're already paying plenty to uncle sam, right? Let's avoid those costly mistakes. CNN personal finance editor Gerri Willis has some timely tips ahead of April 15th -- 17th we should say because I guess of this year.

WILLIS: That's right.

NGUYEN: And, you know, I've got to get my taxes in. So I'm really looking forward to what you have to say.

First question here. Is it smart to pay your taxes by credit card? Because a lot of people want those points.

WILLIS: Well, first off, good morning, Betty. Good to see you.

I say, though, skip the plastic. It's almost never worth it to use your credit card to pay your taxes. You'll be charged a convenience fee of 2.49 percent of your payment plus interest. Try not to be tempted with those offers of frequent flier miles. It's just not worth it. It's cheaper to get them another way.

Betty.

NGUYEN: Well, you know, a lot of people just don't have time to wait for that refund. They're ready to spend it or they need to spend it now. These refund-anticipated loans, is that a good idea?

WILLIS: Yes, refund anticipation loans, forget about it. You want to stay away from those. I'll tell you why. These are short- term loans from tax preparers based on your pending tax refund. But the interest rates on these loans can be in the triple digits. That's right, triple digits. And this all for the privilege of getting your money a few days earlier.

Now recently Congress has taken steps to crack down on these predatory loans. If you want to get your refund more quickly, there are easier ways. You can file electronically or have your refund direct deposited to your bank account. Take those options, not the refund anticipation loan.

NGUYEN: OK. So if you can't pay by credit card be you just really cannot pay your taxes in a lump sum, what should you do?

WILLIS: Well, there is an out. Probably the worst mistake you can make is not paying your taxes. Your unpaid balance is subject to a 5 percent per month failure to file penalty, plus you'll have to pay interest that is compounded daily.

NGUYEN: None of this is good, Gerri.

WILLIS: Absolutely not. So you can avoid this, though, by working out an installment agreement with the IRS so you can pay over time. To request an installment agreement, submit form 9465, that's 9465, or write your own request for a payment plan. Don't forget to indicate how much you can pay and on what days of the month you can make your payment. Now you may have a one-time fee of about $100. But let me tell you, it's worth it and it's really easy to do.

NGUYEN: Bottom line, though. Tax time, you have to pay the piper. There is just no way around it.

WILLIS: Well, look, don't be fooled. If you file an extension, everybody thinks that's the panacea and you think you're going to wait until October, you still have to pay estimated taxes by April 17th.

NGUYEN: That's right, you have to pay a little bit. That's correct.

WILLIS: Even if you delay your filing, you have to estimate how much you'll owe in taxes, write a check for that.

And just a reminder too, we want to keep those questions coming. Send them to toptips@cnn.com. We answer them right here every Friday. And we love, love, love to hear from you.

NGUYEN: Well, it's always such good information.

Gerri, a pleasure as always.

WILLIS: Great to see you.

HARRIS: And still to come in the NEWSROOM this morning, pictures of tranquillity before the tsunami. South Pacific islands hit by giant waves. Stay in the NEWSROOM. NGUYEN: Also, a Michigan mother accused of offering her seven- year-old daughter for sex. Now she's behind bars. She's entered a not guilty plea, though. We're going to be following this story in the NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: How about giving patience a chance? That is the position of the British government right now in its diplomatic standoff with Iran. And there may be some movement this morning. Iranian media saying videos of what Iran calls confessions by detained British troops will no longer be televised. Iran citing a change in British policies. Those 15 British sailors and marines have been held since March 23rd. Iran accuses them of entering Iranian waters. British officials say the troops stayed in Iraqi waters and are demanding their immediate release.

HARRIS: Democratic House Speaker Nancy Pelosi going against the wishes of the White House by going to Syria. Pelosi plans to be in Damascus tomorrow to meet Wednesday with the Syrian president. Today, it was a stop in Lebanon to meet with official there. The house speaker is heading a congressional delegations on a fact-finding mission to the Middle East. Her planned stop to Syria has drawn fire from the White House, which has refused direct talks with Damascus. Pelosi will be the highest-ranking U.S. official to visit Syria since relations deteriorated between Damascus and Washington.

NGUYEN: A tiny island nation in the South Pacific struck by a massive tragedy. At least 13 deaths are reported after the Solomon Islands were slammed by two powerful earthquakes and then a tsunami. As searchers comb through the rubble, the death toll is expected to climb. These scenes now are video of the Solomon Islands before the quakes. It looks lovely. Well, it is an island chain, with more than 200 islands, and a population of more than a half-million people. When that tsunami rolled ashore, entire villages were just swallowed up by the sea, and according to reports, waves were more than 30 feet high in some areas.

(WEATHER REPORT)

HARRIS: A couple of Supreme Court decisions to tell you about this morning. The Supreme Court has ordered the federal government to take a fresh look at regulating carbon dioxide emissions from cars. This is a bit of a rebuke to the Bush administration's policy on global warming. In a 5-4 decision the court said the clear air act gives the Environmental Protection Agency the authority to regulate the emissions of carbon dioxide and other greenhouse gasses from cars. So a bit a defeat here on the issue of global warming for the Bush administration. Then a second decision, the Supreme Court has rejected an appeal from Guantanamo detainees who want to challenge their five-year long confinement in court. This is a victory for the Bush administration's legal strategy in its fight against terrorism.

Now, so far none of the roughly 385 detainees has yet had a hearing in a civilian court challenging its detention, because of the administration has been strong moved to limit their legal rights and has labelled them enemy combatants. So this is an administration victory for its position on the war on terrorism, and enemy combatants.

(NEWSBREAK)

HARRIS: Betty, we want to get everyone to the Pentagon now and our Barbara Starr. And, Barbara, you're reporting on troop rotations. We're talking about soldiers heading back to Iraq.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Absolutely, Tony. As we speak, the Pentagon is announcing that about 9,000 troops have now been earmarked for a new rotation to Iraq. This is the rotation that will carry the surge, if you will, as the Pentagon calls it, through the summer, many of these troops now being announced for duty in Iraq. We'll, of course, make it possible for the U.S. military to maintain its presence in Iraq well into 2008. To be clear, these are not additional troops; these are the troops, about 9,000 in all, that will be replacing troops coming to the end of their tour of duty. But it is going to be a reflection, this rotation of just how stretched thin the U.S. military is, Tony.

Let us offer you two details on this. A unit of the 4th Infantry Division out of Texas is going to head back into combat, not after being home for a year, as they're supposed to be. They will go back 81 days short of being home for a year, resting, recuperating and being with their families. They will head back into Iraq, and a unit of the 10th Mountain Division out of the New York, they, too, they will go back into Iraq some 47 days short of being home for a year.

So very tough news for troops in both the state of Texas and the state of New York. Nobody is ignoring the fact those are also politically very important states for the administration -- Tony.

HARRIS: And, Barbara, you're talking about in that first case, 2 1/2 months, that is a significant amount of time to have -- to lose.

STARR: Yes, it is indeed. This is going to be a headquarters element of the 4th Infantry Division. They are going to replace another unit that is due to come out.

But what the Pentagon tells us is we're going start seeing these rotation-type announcements literally month by month now. They are trying to find a way to keep what they call the surge going. That's 20 brigade combat teams on the ground. That means really moving a lot of people around very quickly, and there's every expectation we're going to see more of this, troops going back into combat after being home less than a year -- Tony.

HARRIS: OK. Pentagon correspondent Barbara Starr for us. Barbara, thank you.

(COMMERCIAL BREAK)

(NEWSBREAK)

(BUSINESS HEADLINES) HARRIS: Think that rebate offer is money in your pocket?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The instructions tell you to fill out the form with your left hand and address the envelope with your right hand, do it, because one little slip-up can invalidate your claim.

(END VIDEO CLIP)

HARRIS: Trouble redeeming that rebate. See the rebate runaround in the NEWSROOM.

HARRIS: Listen to this. A Michigan mother in handcuffs. Now, she denies it, but police say the woman offered her 7-year-old for sex and porn.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: She had indicated very clearly that that child would do whatever it was that the person that was going to meet the child wanted to do.

(END VIDEO CLIP)

NGUYEN: If true, the mother of all crimes, in the NEWSROOM.

HARRIS: Airline quality in question. A new we'll ranks the airlines from worse to first. We will talk with one of the study's authors coming up in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Podcast music there. You already know to catch us weekday mornings from 9:00 a.m. until noon Eastern right here on CNN. But now you can take us with you anywhere your iPod. The CNN NEWSROOM podcast available to you 24-7 right on your iPod.

How about this story this morning? A Michigan woman accused of offering her 7-year-old daughter for sex and porn. Police say she was caught in an undercover operation. And now all five of the woman's children are in protective custody.

The story now from WXYZ's Kim Craig.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: She indicated on the Internet that she was a prostitute.

KIM CRAIG, WXYZ REPORTER (voice-over): But far worse than selling her moan body, this Taylor woman is accused of making her 7- year-old daughter available for sex.

SHERIFF WARREN EVANS, WAYNE COUNTY, MICHIGAN: She was prepared for pornographic photos and anything else that was available, if the price was right.

CRAIG: Wayne County sheriff deputies arrested the mother outside a hotel near metro airport. She said she brought her daughter, a bag full of toys and different outfits for the little girl to change into. Investigators tell Action News the mother thought she was coming to the hotel to meet a man she had chatted with online about photographing her daughter while she was being molested. Thankfully that man was really an undercover deputy.

EVANS: She had indicated very clearly that that child would do whatever it was that the person that was going to meet the child wanted to do, and that she would see that the child complied.

CRAIG (on camera): And the sheriff says she wanted to sell pictures of her little girl to collectors of child porn.

(voice-over): The mother was arraigned on multiple charges, including child sexually abusive activity and soliciting. And to protect the lives of the children, the sheriff is not even identifying her mother. The little girl and four siblings have been placed in protective custody. The question now what kind of harm and abuse may the children already have endured?

EVANS: The investigation will continue, and obviously we have concerns about the other children as well. And it also appears from some of the chats that this child had been through some exploited behavior prior to this.

(END VIDEOTAPE)

HARRIS: The accused woman was not represented by an attorney for her arraignment and a not-guilty plea was entered on her behalf.

NGUYEN: Well, this just in to CNN. We are getting some numbers in dealing with campaign fund-raising. Rudi Giuliani, a hopeful for president, has raised $15 million in the first quarter. But that really doesn't compare to Hillary Clinton's $36 million so far. She has raised the most. John Edwards coming in at $14 million. Just some of the numbers that we are getting today when it comes to campaign fund raising.

There also is a new report card on the airlines. Which ones are flying on time and which ones are behind the clock? Delayed, in the NEWSROOM.

HARRIS: Benedict the XVI, honoring John Paul II on the anniversary of his death. We are watching -- could we be watching sainthood in progress? Live coverage in the NEWSROOM.

NGUYEN: Also, secretary in Iraq. CNN's Kyra Phillips and the top U.S. general in Iraq walk through one of the capital's most dangerous areas. Find out what Kyra learned. That's ahead in the NEWSROOM.

(COMMERCIAL BREAK) NGUYEN: Well, you've seen the offers, buy this product and get a big rebate. Sounds great. But sometimes it is too good to be true. Yes, we've heard that before.

Here's CNN's Gary Nurenberg.

(BEGIN VIDEOTAPE)

GARY NURENBERG, CNN CORRESPONDENT (voice over): A little rebate exaggeration.

UNIDENTIFIED MALE: Get about $4 million we're going to get. May be $4.5 million. Plus a new car.

NURENBERG: Not likely, and not likely all the consumers lured by those mail-in rebate offers in the newspaper and online will actually collect on the promised reward.

UNIDENTIFIED FEMALE: I just can't remember the receipt. I can't remember where to mail it. Nothing ever comes together.

NURENBERG: She's not alone. One study found 45 percent of 2006 rebate offers were not redeemed.

UNIDENTIFIED MALE: Some rebate offers have hoops that you have to jump through to reduce the odds that you'll actually claim it.

NURENBERG: Those hoops are good business. Every dollar not paid in rebates is a dollar the company gets to keep. All of that red tape causes some customers to just give up.

UNIDENTIFIED MALE: I just dropped it because it wasn't worth figuring it out.

NURENBERG: Figuring it out carefully is the key.

UNIDENTIFIED MALE: If the instructions tell you to fill out the form with your left hand and address the envelope with your right hand, do it. Because one little slip-up can invalidate your claim.

NURENBERG: For retailers, rebates bring both profit and problems.

UNIDENTIFIED MALE: It has been historically one of the most prolific forms of customer complaints.

NURENBERG: So some big retailers, like Best Buy, are moving away from mail-in rebates and toward immediate rebates in the store or rebates online, that allows customers to track their claim. But don't expect retailers to give up rebates completely.

UNIDENTIFIED MALE: Rebates are perhaps one of the most effective ways to induce individuals, to make decisions, to purchase products, or perhaps to up sell to a more expensive product.

NURENBERG: So expect the rebate runaround to remain. Gary Nurenberg, CNN, Washington.

(END VIDEOTAPE)

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