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American Morning

Major Flooding in Iowa; Elian Gonzales Joins the Communist Party; High Price of Fuel Forcing Airlines to Tack Fees on to Your Travel Bill; President Bush and Gordon Brown Holds A Joint Press Conference; John McCain Says Obama Wrong on Iraq; Will the Saudi Oil Boost Bring High Prices Down?; Obama's Father's Day Message to M.I.A. Dads; Is the American Dream Dead or Alive?

Aired June 16, 2008 - 06:00   ET

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


KIRAN CHETRY, CNN ANCHOR: In fact, we're starting out this morning from London where President Bush and British Prime Minister Gordon Brown will be speaking. They're holding a joint news conference. It's set to happen any minute now.
The two leaders are meeting on the President's final day in Europe, and they're discussing some big issues, including the war in Iraq, Iran, the Mideast peace process. And today's sit-down comes as President Bush launches a renewed effort to capture terror leader, Osama bin Laden, before his time in office is over.

Our CNN White House correspondent Elaine Quijano traveling with the President this morning, joining us live from London. Hi, Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hello to you, Kiran. And that's right. That news conference set to get under way at any moment at 10 Downing Street. But President Bush is here in London. His farewell tour essentially of Europe coming to an end.

The President sitting down as you noted for talks with British Prime Minister Gordon Brown on a host of issues, including Iran, Iraq, the Middle East peace process. But on that point that you just raised about Osama bin Laden, the White House certainly trying to push back on the notion that there is any kind of renewed effort out there.

Stephen Hadley, the President's national security adviser, addressing this on Air Force One yesterday on the way here to London saying, look, since September 11th, the United States has essentially been looking for bin Laden and has tried to dismiss essentially the reports that there was a renewed effort under way.

Now, on Iraq, a bit of a (INAUDIBLE), if you will, you will likely hear the British prime minister as well as President Bush trying to downplay, dispel any notions of a riff between the United States and the UK when it comes to troop levels in Iraq. There was a report in the newspaper here that perhaps President Bush was going to try to pressure the British prime minister to keep the troops there.

In any case, what Stephen Hadley told the reporters yesterday is that return on success is the policy of the United States government. It is the policy of the UK government as well. And those are the kind of themes we'll likely hear as President Bush and British Prime Minister Gordon Brown gets set to deliver this news conference.

Now, we should also tell you that while here in London the President earlier today, before meeting with the current prime minister, met with the ex-prime minister, Tony Blair. You'll recall Tony Blair, of course, was the President's staunchest ally on the controversial issue of Iraq and the issue certainly here in Britain that is very unpopular.

Nevertheless, Tony Blair is now a Mideast peace envoy. That was a closed meeting. So President Bush essentially saying farewell as he, again, wraps up his farewell tour of Europe -- Kiran.

CHETRY: What do you make of the reports this morning in the British media, Elaine, that President Bush is enlisting British special forces in this so-called final attempt to catch bin Laden before he leaves the White House?

QUIJANO: Well, that's right. And again, Stephen Hadley trying to essentially say, look, the search has been on since September 11th for Osama bin Laden, as well as other top al-Qaeda officials. Stephen Hadley said, look, every day when the President gets his intelligence briefings, that is something that is first and foremost on the President's mind, this list of questions asking about Osama bin Laden, asking about Zawahiri.

So the White House essentially not answering the specifics of the article about whether or not British forces might be more involved in a search for bin Laden but essentially saying, look, the search continues for bin Laden.

CHETRY: Elaine Quijano for us this morning outside of our bureau in London, thank you.

Also remember, you can see the President's news conference streaming live on our Web site, CNN.com/live -- John.

JOHN ROBERTS, CNN ANCHOR: Turning now to the flooding in the Midwest, 36,000 people are homeless today. Some water is receding. The towns downstream along the Iowa River are in danger of more flooding, and the floodwaters devastating millions of acres of corn, grain and soy beans, likely pushing already skyrocketing food prices even higher. These look like lakes but they're towns and fields.

CNN's Jim Acosta is live in Cedar Rapids this morning which received the brunt of the flooding. Jim, what's the scene like there this morning?

JIM ACOSTA, CNN CORRESPONDENT: Well, John, we're just getting word this morning that Cedar Rapids officials are suspending checkpoints that were set up to allow residents back into their homes because some of these neighborhoods are just too unsafe after everything this city has been through. That's going to be tough to enforce.

(BEGIN VIDEOTAPE) ACOSTA (voice-over): It was a flood of frustration as thousands of people stood in long lines at police checkpoints to reenter their neighborhoods. Men, women, even children were given wristbands to quickly go home and carry out whatever they could in plastic bags. Carla Morford didn't know whether to laugh or cry.

VOICE OF CARLA MORFORD, FLOOD VICTIM: We're safe. We've got our kids. We got our pets.

ACOSTA: One detective admitted they are making it up as they go along.

DET. BRAD NOVAK, CEDAR RAPIDS POLICE: It's been compared to a 3,000-year flood, or a 2500-year flood. And so, something with that rarity of an event, there is no playbook to go by.

UNIDENTIFIED MALE AND FEMALE: That's our boat house.

TRACY MURPHY, FLOODING VICTIM: Right there.

ACOSTAS: We gave the Murphy family a ride home.

UNIDENTIFIED MALE: I don't know safe it is to go in.

ACOSTA: That is, what's left of it.

MURPHY: My whole entire life is gone. I don't know what we're going to do.

ACOSTA: Holding back tears, Tracy frantically grabbed all the family photos she could find.

MURPHY: Everything could be replaced but your photos can't.

ACOSTA: Like scores of other homeowners here, she was told she didn't need flood insurance. Guess what the insurance company is telling her now?

MURPHY: And they said because it's a flood, they're not going to help us.

ACOSTA (on camera): What's going to happen to this town?

MURPHY: I don't know. Is the government going to come in and buy all these houses, knock them down?

ACOSTA (voice-over): There is going to be plenty to knock down and clean up from this grain silo that split open in the rising waters to this fuel tanker pinned under a highway. But for many of the people who live here, it's the smaller things that matter most.

CANDICE RIBBLE, FLOODING VICTIM: House, our home.

ACOSTA: Everybody is out safe?

RIBBLE: Everybody is out safe now. Now, they are. (END VIDEOTAPE)

ACOSTA: And Cedar Rapids officials will be entering back into these neighborhoods today to determine just how soon residents can return to their homes. That could happen as soon as soon as tomorrow. It's going to be a long day today, John.

ROBERTS: All right. Terrible situation there. Jim Acosta for us in Cedar Rapids, Iowa. Jim, thanks.

ACOSTA: You bet.

CHETRY: Turning now to the "Most Politics in the Morning."

John McCain attacking Barack Obama's policies on Iraq after discussing security improvements in the country with Iraq's foreign minister.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESUMPTIVE PRES. NOMINEE: The fact is that the situation on the ground is that we have made enormous success and the surge has worked. Senator Obama was wrong when he said that it would fail.

(END VIDEO CLIP)

CHETRY: Iraq's foreign minister also said that he'd meet with Obama but no date and time has been set for that. Obama has said that he would remove American forces from Iraq within 16 months of taking office.

Senator Obama also delivering a Father's Day message during a church service on Chicago's South Side. The presumptive Democratic nominee calling on men, especially the African-American community, to take greater responsibility for their families.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESUMPTIVE PRES. NOMINEE: But if we're honest with ourselves, we'll admit that too many fathers are also missed. Too many fathers are M.I.A., too many father are AWOL, missing from too many lives and too many homes. They have abandoned their responsibilities. They're acting like boys instead of men.

(END VIDEO CLIP)

CHETRY: Obama's father left when he was 2 years old leaving him to be raised mostly by his maternal grandparents. We're going to have more on this story coming up later in the hour.

ROBERTS: New this morning, gay couples in California will be allowed to get married starting this evening. Diane Olson and Robin Tyler will be the first same-sex couple to legally tie the knot in Los Angeles County at the Beverly Hills courthouse. The two women were the original plaintiffs in the historic lawsuit that led to the state overturning a ban on gay marriage.

It seems that more smokers are trying to kick the habit in New York State, after taxes and a pack of cigarettes went from $1.25 to $2.75 cents. According to the state's health commissioner, the number of calls to a smokers quit line have quadrupled. In most of the states, cigarettes range between $6 and $8 a pack.

And next up for Senator Ted Kennedy, chemotherapy and radiation treatments. Congressman Patrick Kennedy says his father is getting ready to "do battle against his brain cancer," considering a pill form of chemotherapy that would allow him to stay home during treatment.

Let's go now live to #10 Downing Street, London, press conference with Prime Minister Gordon Brown and President Bush. President Bush just beginning to speak.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Let him speculate, who knows. But it's been a -- we had a great dinner last night. I want to thank you and Sarah.

Thanks for calling together the historians. Great Britain has produced great historians. And I am -- I love reading a lot of their works and it's so kind of you to have them over, and the food was good, too.

And also, we had a great visit yesterday. Laura and I went to see her Majesty, the Queen. I thank her for her hospitality. And then yesterday at the embassy, thanks to our ambassador, I had the opportunity to speak to some of your soldiers and listened to their stories of courage and bravery and sacrifice. It was really touching. I really appreciate the British people's support and the people who wear the uniform.

And I am looking forward to going to Northern Ireland this evening. You've taken the lead. We're just pleased to help, and hopefully this visit will help keep the process moving.

First thing about Gordon Brown, he's tough on terror and I appreciate it. So should the people of Great Britain and the world. He fully understands that while some want to say that the terrorist threat is gone or there's nothing to worry about, it is something to worry about.

And you were tested early in your prime ministership. You dealt with the challenge, and I appreciate your continued focus and your understanding that we got to work together to protect our people, and your understanding that freedom is transformative and the ultimate way to succeed against these extremists who use murder as a way to achieve their political objectives just to marginalize through the advance of liberty.

And that's what we're doing in places like Afghanistan and Iraq. And it is tough work. It's hard to take a society that had been ravished by brutality and convince people to take the risks necessary to work for civil society and freedom for women and to educate their children. But I believe it's necessary work for the sake of peace and for our security. And I believe it's in the moral interests of comfortable nations to help others realize the blessings of liberty.

Now for some that sounds like hopeless idealism. For those of us involved with making public policy necessary to protect our people, it is the only realistic way to guarantee the peace for our people. And so, you've been strong on Afghanistan and Iraq. And I appreciate it. But more importantly, the people of Afghanistan and Iraq appreciate it.

The march to democracy is never smooth. We've got our own history. You know, America is viewed as a great democracy. Just remember, many of our citizens were enslaved for a long period of time before we finally got it right. But it's in our interest to help these folks.

It's in our interest little girls go to school in Afghanistan. It's in our interest that there be free elections in Iraq. And it's in our interest that we help these governments survive, and has taken sacrifice from our people. I understand that.

The fundamental question in history is going to look back on it as we understand, you know, the duty that we've been called to do to protect ourselves and help others. And this prime minister has understood the duty.

I know there's a lot of discussion here in the British press about, well, is there going to be enough troops, there's not enough troops, and all that business. Is he trying to distance this, that and the other? Typical.

But I just want to remind you that he has left more troops in Iraq than initially anticipated. And like me, we'll be making our decisions based upon the conditions on the ground, the recommendation of our commanders, without an artificial timetable set by politics.

I thank you for your troop announcement today in Afghanistan as well. They issued (ph) a strong statement on Iran. It was a clear statement and it was a strong statement, and it was a necessary statement because the free world has an obligation to work together in concert to prevent the Iranians from having the know-how to develop a nuclear weapon.

And now is the time to work together to get it done, and I appreciate your statement. Hopefully the Iranian leadership will take a different position than the one they've taken in the past, which is basically who cares what the free world says. We're going to -- you know, we'll go our own way. And now, they face serious isolation and the people who are suffering are the Iranian people.

We have no qualms with the Iranian people. As a matter of fact, we want the Iranian people to thrive. It's in our interests that there be a hopeful society. It's their government who has denied them their rightful place in the world.

And so, I want to thank you very much for working hard to, you know, to help keep this coalition together to provide pressure necessary so we can solve the problem diplomatically. That's my first choice. Iranians must understand all options are on the table, however.

Thank you for your strong words in Zimbabwe and I -- you know, obviously you're emotional on the subject and I don't blame you because the people of Zimbabwe has suffered under the Mugabe leadership. And we will work with you to ensure these good folks have free and fair elections to the best extent possible, which obviously Mr. Mugabe does not want to have.

We talked about Darfur. We talked about Burma. I strongly support your health care worker initiative. Looking forward to going to G8 to articulate that. And we expect the people of the G8 community, leaders of the G8 countries to fulfill their obligations.

Last year we met and we had -- to discuss a lot of issues, including HIV, AIDS and malaria on the continent of Africa, and they all came forth and said, we'll match the United States, except most nations haven't matched the United States to date except for Great Britain.

ROBERTS: That's President Bush speaking with the UK prime minister, Gordon Brown, this morning after having meetings together. The president thanking Gordon Brown for his strong statement on Zimbabwe saying that the Mugabe government should accept U.N. human rights envoys into the country and also international monitors to monitor the run-off election. It's coming later on this month.

Also strong statements on Iran. Britain will be sending more troops to Afghanistan, raising its commitment there, mostly in Helmand (ph) province to more than 8,000.

And also, the two leaders playing down any kind of a rift over Britain's planned withdrawal from Iraq saying -- President Bush saying that the United Kingdom has left more troops than initially anticipated in Iraq.

We'll be speaking more about this this morning. Our Michael Ware will be joining us live from Baghdad, and we'll keep monitoring this press conference. If any more news is made, we'll bring it right to you -- Kiran.

CHETRY: Still ahead, work hard, play by the rules, and tomorrow will be better than today. It's the core of the American dream. But with the shaky economy, is your dream still alive and well?

We actually went up the street to talk to the folks about it. We'll hear what you have to say.

Also, soaring oil prices making big oil producers nervous. Saudi Arabia now saying it will boost production to try to stabilize the market. So does that mean that we can all look forward to lower prices at the pump?

You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: Welcome back, 17 minutes past the hour.

Soaring oil prices pushing Saudi Arabia to boost production. We have Gerri Willis today in for Ali Velshi. Will we eventually see that in the form of lower gas?

GERRI WILLIS, PERSONAL FINANCE EDITOR: What is that song, dream, dream, dream? All right. Let's start with the prices first because that's what everybody cares about, right?

AAA reporting a new high for gas prices, $4.08 a gallon. Ouch. It's the ninth straight increase, and it's a new high oil prices per barrel.

Not a high here at $134.86. That was Friday settled. That's where they are trading this morning, but nobody likes that number. Way too high.

As a matter of fact, Saudi Arabia is thinking it's so high that they are boosting production by 200,000 barrels a day. Now you might think that sounds like a big number but in reality it's just two percent of their total daily production. And the world consumes 84 million barrel as day so you can see that's really a small percentage.

That's the second production hike the Saudis have put in place in the last few months. Apparently according to U.N. Secretary General Ban Ki-moon, he says the Saudis are saying that they don't believe that these current prices are normal and that they are concerned that production -- increasing production won't go far enough maybe in the end to actually bring down prices. They're worried that ultimately they're going to hurt global demand.

CHETRY: All right. Gerri Willis, we'll see you throughout the morning. Thanks for being with us.

WILLIS: My pleasure.

ROBERTS: Thank you, Gerri. Good morning, good to see you.

Iowa under water. Many cities and towns hit with devastating floods and the worst may not be over yet.

Also, Great Britain's decision to cut the number of British troops in Iraq. What does it mean for America's men on the front line? We're live in Baghdad.

You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Coming up on 22 minutes after the hour. Welcome back to the "Most News in the Morning."

A look at the disastrous flooding in Cedar Rapids, Iowa. Entire sections of the city underwater today, and towns near the Mississippi river are preparing for more flooding. That river is expected to crest later on today. CHETRY: Well, today, we're taking a special look at the American dream. The idea that if you work hard you can make a better life for yourself and your parents. So with the economy in so much turmoil, we want to know is the American dream dead or alive to you? Here's a look at what some of you think.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: What does the American dream mean?

UNIDENTIFIED FEMALE: American dream? Just to be happy.

UNIDENTIFIED MALE: The American dream is to buy a home and raise a family.

UNIDENTIFIED MALE: To send your kids to college.

UNIDENTIFIED FEMALE: Just to be successful.

UNIDENTIFIED MALE: Having enough money to secure a good future for yourself and your kids.

UNIDENTIFIED MALE: To have the girl you love.

UNIDENTIFIED MALE: To retire and enjoy some of the results of what you worked for.

UNIDENTIFIED FEMALE: Freedom, that's the American dream to me.

UNIDENTIFIED FEMALE: It is a little challenging these days to achieve any kind of dream because the challenges are always economic.

UNIDENTIFIED MALE: The dream of owning a home for me is out of the question.

UNIDENTIFIED FEMALE: I think it's difficult striving for it, but it can be done.

UNIDENTIFIED MALE: It's a nightmare. It's not achievable.

UNIDENTIFIED MALE: I don't think it's that difficult if you're willing to go out and work.

UNIDENTIFIED FEMALE: Where there's a will there's a way. And hard work and determination, I think you can reach it.

UNIDENTIFIED MALE: The American dream is on life support.

UNIDENTIFIED MALE: For me I'm doing OK. I'm probably better off than most people.

UNIDENTIFIED MALE: Well, I just bought a home now, so I'm starting to live the American dream.

UNIDENTIFIED MALE: I'm not living it yet, but I hope one day I will be. UNIDENTIFIED FEMALE: I'm living it because I have peace of mind.

UNIDENTIFIED FEMALE: The American dream is not dead.

UNIDENTIFIED MALE: The American dream is being rich and wealthy and I'm not living it.

(END VIDEOTAPE)

CHETRY: And there you go. We want to know what you think. Head to our Web site, CNN.com/am. You can shoot as an e-mail or click the I-report link to submit your pictures or video, and we'll be showcasing some of your stories throughout the rest of the week. So even though he said I'm not living it, he seemed very happy.

ROBERTS: He had the cell phone. That's the first step.

CHETRY: And what was your version? I love that.

ROBERTS: To be able to retire and be able to eat something other than cat food.

CHETRY: Set the bar low and you won't be disappointed.

ROBERTS: It's my American dream. There you go.

Barack Obama talks about the duties of fatherhood, singling out the African-American community. His focus on the family and how it could affect the campaign.

CHETRY: Coming up on AMERICAN MORNING, playing for the other side.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I knew my patriotism was definitely going to come under attack.

(END VIDEO CLIP)

CHETRY: The Olympian who's being called a traitor. Why this all-American girl is suiting up for Russia.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I still love my country.

(END VIDEO CLIP)

CHETRY: You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESUMPTIVE PRES. NOMINEE: ROBERTS: Any fool can have a child. That doesn't make you a father. It's the courage to raise the child that makes you a father.

(END VIDEO CLIP)

ROBERTS: Barack Obama sending a message to M.I.A. dads on Father's Day, blasting them for abandoning their responsibilities and singling out the African-American community. How is his message being received this morning?

Melinda Henneberger is a political contributor to "Slate" magazine. She joins us now this morning from our Washington bureau.

Melinda, good to see you. How do you think he did yesterday? This is his first appearance in church since he left his former church after all the controversy there.

MELINDA HENNEBERGER, POLITICAL CONTRIBUTOR, "SLATE" MAGAZINE: I think it's really important. He certainly has been giving this speech for years, so this is not a new theme for him. But, of course, not everybody has heard it. And I think it's important for people who may not know Barack Obama that well, for them to see how seriously he takes this topic.

For him, you know, a lot of people in politics are absentee dads. And the truth about this candidate is, as one of his aides on his senatorial campaign told me, you know, when Barack Obama feels sorry for himself, it's not as a black guy, it's as a parent. He is constantly, when he's at his most annoyed, it's do you know I'm a father, do you know I have to get home? That he really takes that very seriously and has been for years quite critical of what he describes as these men acting like boys, not taking on their responsibilities as fathers and to show his feelings about the traditional family.

As he said, you know, the family is the rock on which we build our lives but nothing is more important. So I think that part of Barack Obama's life is something that people who are just getting to know him might not have been aware of.

ROBERTS: Yes. He was even talking about himself yesterday during that message, saying that, you know, I'd like to get home more than I can. But, you know, the duties of politics takes me far from home.

HENNEBERGER: Right.

ROBERTS: And I'm sure for any presidential candidate it's difficult to have to balance the needs between the campaign or their duties as a public servant and family.

HENNEBERGER: Right.

ROBERTS: Hey, he's in Michigan today. He's got a speech on competitiveness in Flint, Michigan. Recent polls showed John McCain ahead of Barack Obama. Now the polls seem to be tightening up a little bit. But, of course, he wasn't even on the ballot there during the primary. HENNEBERGER: Right.

ROBERTS: How much work does he have to do in Michigan to try to keep that in Democratic hands?

HENNEBERGER: You know, I think that probably looks pretty good for him. As you say, he's really just becoming known there. But I think that his economic message is certainly one that could pitch well to folks in the auto industry, for example, who have been losing their jobs. It's certainly more than he has heard at least so far from John McCain.

ROBERTS: Right.

HENNEBERGER: Same with the voters there.

ROBERTS: Is he dealing with it realistically? We remember back during the Republican primary, Mitt Romney won the state because he had this message of, I can bring back those jobs in the automotive sector where at the same time John McCain was saying, hey, don't fool yourself. Those jobs are gone. We have to retool, we have to reeducate.

HENNEBERGER: Well, I think the latter is more the truth. And voters at some point, you know, they say they want authenticity. And in this arena, sadly, the authenticity is, we can bring the jobs back, we can't bring those jobs back.

ROBERTS: Right.

HENNEBERGER: And, you know, that's not an easy message for any politician to put out but it does happen to be the truth, I think, in this situation.

ROBERTS: John McCain continues to attack Senator Obama on this issue of Iraq and experience. Yesterday Senator McCain met with Hoshyar Zebari, who's the foreign minister of Iraq. Here's what he had to say after that meeting.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESUMPTIVE PRES. NOMINEE: The surge has worked. Senator Obama was wrong when he said that it would fail. And Senator Obama was wrong when he said that we had to have an immediate date of withdrawal for troops in Iraq. It was just wrong.

(END VIDEO CLIP)

ROBERTS: A recent CNN poll, Melinda, finds that Americans think that John McCain is stronger on this issue of national security. Does he have the upper hand, do you believe, going into this general election campaign?

HENNEBERGER: Well, no. Americans think he's stronger on the issue of national security. At the same time, Americans much more strongly support the Obama view that we need to start moving troops out with 150,000 troops still in there.

And when McCain meets with Zebari and the message out of both of them is, the war will be over when it's over. We're winning, we're succeeding but we haven't won enough -- you know, we haven't succeeded enough to actually be able to take the troops home.

It's just sort of circular. It's we'll win when we've won and that's when a war is over when you bring the troops home. I'm not sure that that's a message that resonates with many voters today.

ROBERTS: Melinda Henneberger from "Slate" magazine. Thanks for being with us this morning.

HENNEBERGER: Thanks.

ROBERTS: Good to see you.

HENNEBERGER: Thank you very much.

KIRAN CHETRY, CNN ANCHOR: Coming up on the half hour now and a recap of today's top stories.

Flood waters receding in Iowa, but some areas downstream are still in danger. In hard-hit Cedar Rapids, 24,000 people were allowed back to see what's left of their soaked homes. In Illinois, the National Guard placing half a million sandbags trying to keep the Mississippi River at bay.

Preparations are under way for funeral services and memorial for NBC's Tim Russert. A public wake will take place tomorrow afternoon at St. Alban School in Washington with a private funeral scheduled for Wednesday morning. A televised memorial service will also be held Wednesday afternoon at the Kennedy Center.

And the $5 billion merger between XM and Sirius Satellite Radio getting the OK from the chairman of the Federal Communications Commission. But his approval comes with some strings attached, including a three-year price freeze and also turning 24 channels into non-commercial and minority programming. A final vote on the deal could come as early as next week.

And as we showed you live at the top of the show, President Bush is in London this morning and he's talking with Prime Minister Gordon Brown. One of the main topics on the table -- Iraq. President Bush spoke about England's presence on the front lines.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I know there's a lot of discussion here in the British press about -- well, you know, has he given enough troops or not enough troops and all that business. And as he trying to distance this, that and the others, you know, typical.

But it's -- I just want to remind you that he has left more troops in Iraq than initially anticipated. And like me, we'll be making our decisions based upon the conditions on the ground, the recommendation of our commanders, without an artificial timetable set by politics.

(END VIDEO CLIP)

CHETRY: And CNN correspondent Michael Ware joins us from Baghdad now.

So, he said again, as he said before, about decisions based on conditions on the ground. What are those conditions right now, Michael?

MICHAEL WARE, CNN INTERNATIONAL CORRESPONDENT: Well, Kiran, right now in relative terms, the war in Iraq is in better shape, clearly, than it was a year or two years ago.

We're sort of levels of violence pre the worst days of Fallujah in 2004. That's undisputed. Civilian deaths are down. Sectarian murders in Baghdad alone are down by more than 90 percent. So, that's the condition.

Yes, things are quieter on the surface. The real question is, what does America have to do to achieve this and what's going to be those implications -- tearing apart the social fabric of Iraq, institutionalizing the sectarian cleansing, warring off sectarian communities.

Literally, we've got blast barriers in the capital. And then those communities that did not have Iranian-backed militias to protect them, America funded and support American-backed militias to protect those communities. We're also seeing the on-going American support of an Iraqi government that does not support America.

As General Petraeus himself says, the President of Iraq, the reality of life, is an agent of influence for Iran. So, yes, the conditions on the ground do look better if you look just at the thin veneer of the surface, Kiran. Scratch a little bit deeper and there's a lot more to be said.

CHETRY: In fact, getting some of those sentiments were echoed by Iraq's Foreign Minister Zebari, who talked to Wolf Blitzer yesterday. Let's hear a little bit about what he said on "LATE EDITION."

(BEGIN VIDEO CLIP)

HOSHYAR ZEBARI, IRAQI FOREIGN MINISTER: Iraq has been to hell many times and back. And now, we have the right policies, the right personnel and we have a committed government to accomplish its national agenda. And the surge strategy has worked.

(END VIDEO CLIP)

CHETRY: He said to accomplish its national agenda. So, what is the next step of that final handover to Iraqis when the U.S. troops can then come home?

WARE: Well, obviously, a big step right now is the negotiations, an agreement between Washington and Baghdad. The U.N. mandate, essentially, the authority for this war runs out at the end of the year. The clock is ticking. Baghdad and Washington are going back and forth over the terms of these conditions.

The Iraqi government, however, is threatening to go over the line. Pass their own legislation in their own Congress to dictate to the next president how many troops he can have, where they'll be and what they can do.

So, the next step is going to be about how much is America prepared to give or sell away in return for a troop homecoming or preservation of American interests in the region. Right now, Iran has the upper hand. Iran is the clear winner of the war so far. You can pull out tomorrow as long as you're ready to wear the consequences.

Kiran?

CHETRY: Michael Ware, great to get your perspective as always from Baghdad this morning. Thanks.

ROBERTS: 35 and-a-half minutes after the hour. And Alina Cho joins us now on this Monday morning with other stories new.

Good morning to you.

ALINA CHO, CNN CORRESPONDENT: Hey, good morning to you. Look who's back. Good morning. Welcome back. We missed you very much and it's nice to see you. We're going to talk about the baby in just a minute but we want to get to the news first.

Good morning, everybody. And new this morning, we've been hearing about the rising gas prices. Now, there's word your electric bills are about to go way up.

Utilities across the country plan to raise rates by about 30 percent starting July 1st, pushing an average monthly residential bill from about $70 to about $90. Most of the increase is being blamed on higher fuel costs, but customers are also paying to build new plants and upgrade an aging power grid.

And if that's not enough, gas prices hit a new record this morning. The new national average, $4.08 a gallon according to AAA. Much more in some places. Currently, gas is $4 or more in 28 states and the District of Columbia.

Despite more signs the economy is slowing, corporate CEOs, well, they're doing just fine. An Associated Press review has found the heads of companies in the S&P 500 earned an average salary of, take a look there, $8.4 million last year. That's a gain of about $280,000 from 2006. And collectively last year, the ten best-paid CEOs made a half billion dollars.

"In the Heights" was on the top of the world last night. John is dancing. The first Latino musical written by a Latino won Best Musical at last night's Tony awards. "August: Osage County" walked away with the other big award for Best Play and the revival "South Pacific" -- a really tough ticket, by the way, won the most Tony Awards, taking home seven.

And in case you haven't noticed, Kiran has been gone for about two months. She wasn't on an extended vacation. She had a baby. The newest star in the Chetry-Knowles household is -- drum roll -- baby Christopher Chetry Knowles, born April 17th, with his big sister, 2- year-old Maya there.

Isn't that a cute picture? He's 14 pounds. Kiran just told me. Double his birth weight. And I asked her, is that normal? No, she said, it's not normal.

CHETRY: I don't think so.

CHO: And there's a solo picture of him. Just so cute there.

ROBERTS: Got chubby cheeks.

CHO: Yes, yes. That's Christopher Chetry Knowles. 14 pounds. Tomorrow, will be exactly 2 months old.

CHETRY: Right.

ROBERTS: That's great. Congratulations.

CHETRY: Thank you. He's a sweetheart. And I joked around with my family, I can't wait to go back to the morning show so I can finally get some sleep.

ROBERTS: There you go. And welcome back.

You're watching the "Most News in the Morning." These are turbulent times for the airlines. With jet fuel prices so high, airlines are forced to pass on the costs to the customer. Now we're looking at what could happen if those costs keep rising.

ROBERTS: Coming up on AMERICAN MORNING, the all-American all- star.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: You love your country, you love basketball, it makes sense to have a dream of going to the Olympics.

(END VIDEO CLIP)

ROBERTS: But she won't be wearing the red, white and blue.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I knew my patriotism was definitely going to come under attack.

(END VIDEO CLIP)

ROBERTS: Why this Olympian changed sides and signed on with Russia? And why she says, it's no big deal. (BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: She's playing within the rules.

(END VIDEO CLIP)

ROBERTS: You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Coming up on 19 minutes now to the top of the hour. Welcome back to the "Most News in the Morning." The high price of fuel forcing airlines to tack fees on to your travel bill. But as our Mary Snow reports, airlines need that extra money just to stay in the air.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): Want a water or soda while flying U.S. airways? You'll now have to pay $2 for nonalcoholic drinks. Checking a bag? That will be $15 on some flights, not just on U.S. Air but on United and American.

With oil prices surging analysts say every penny counts for the airlines.

RICK SEANEY, CEO, FARECOMPARE.COM: The bottom line is with fuel going up, tickets have to be increased between 2 percent and 4 percent for every $10 a barrel of oil in order for the airlines to stay basically at a level playing field.

SNOW: Airlines are cutting thousands of jobs and slashing routes to keep costs down. Airline Analyst Ray Neidl says the industry is an unchartered territory since no one ever anticipated that oil prices would reach these levels.

RAY NEIDL, AIRLINE ANALYST, CALYON SECURITIES: They are burning their cash and there's a chance that we may have some major airline bankruptcies.

SNOW: Is there any help the government can provide? White house economic adviser Ed Lazear.

EDWARD LAZEAR, WHITE HOUSE ECONOMIC ADVISER: In the short run what will happen as far as the airline industry is concerned is that those prices will be passed along to consumers. That's an unfortunate consequence of the fact that we are competing with others in the world for a very scarce resource namely oil.

SNOW: And New York Senator Chuck Schumer who chairs the Joint Economic Committee says little can be done short term. Schumer believes airlines should be lobbying Washington to reduce dependents on foreign oil.

SEN. CHARLES SCHUMER (D), NEW YORK: There is only one way out of this. The problem on the ground and the problem in the sky and that is to finally once and for all get our grip on things as a nation and reduce our dependence on foreign oil.

SNOW: And in the short term, analysts say smaller cities are expected to feel the crunch the most as airlines pair back on roots in and out of smaller hubs. Mary Snow, CNN, New York.

(END VIDEOTAPE)

CHETRY: Also, still ahead, a U.S. senator who was supposed to be keeping the banks honest may have gotten a sweetheart deal from one of the companies he was investigating.

Also, major flooding in Iowa and some towns are still going to be seeing the waters rise even higher before they get any break.

Our Jacqui Jeras is tracking extreme weather from the CNN weather center, up next. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: Welcome back to AMERICAN MORNING. You know, many states are dealing with some of the worst flooding they've seen, sometimes ever in their history, some 36,000 people without homes because of the rising waters.

ROBERTS: Yes. We haven't seen anything like this since 1993. Our Jacqui Jeras in for Rob Marciano. She joins us in the weather center in Atlanta.

What's it looking like today, Jacqui?

(WEATHER REPORT)

ROBERTS: Elian Gonzales, that little boy once at the center of an international tug of war. Guess what, he joined the Communist Party. We're taking you live to Havana this morning.

CHETRY: Coming up on AMERICAN MORNING, playing for the other side.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I knew my patriotism was definitely going to come under attack.

(END VIDEO CLIP)

CHETRY: The Olympian who is being called a traitor. Why this all-American girl is suiting up for Russia?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I still love my country.

(END VIDEO CLIP)

CHETRY: You're watching the "Most News in the Morning." (COMMERCIAL BREAK)

CHETRY: Well, she's a star player for the WNBA and now taking some heat for staying true to her Olympic dreams, even if it means playing for a former cold war enemy.

Our Ed Lavandera takes a look.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Becky Hammon's family preached the values of God and country growing up in South Dakota during the last decade of the cold war.

BECKY HAMMON, WNBA ATHLETE: You love your country. You love basketball. It makes sense to have a dream of going to the Olympics.

LAVANDERA: But this quintessential all American girl and an all- star WNBA player won't be wearing the red, white and blue uniform at this summer's Olympics. Becky Hammon will be the starting point guard for team Russia, even though she doesn't speak Russian and has no Russian ancestry.

HAMMON: I knew my patriotism was definitely going to come under attack. And that's OK. I mean, like I said, I grew up in the middle of America. I know how people think because that's how I think.

LAVANDERA: Some fans are angered.

UNIDENTIFIED MALE: Is that her country?

UNIDENTIFIED FEMALE: No.

UNIDENTIFIED MALE: Then I wouldn't be for that.

LAVANDERA: And the head coach of the U.S. Women's national team Ann Donovan has called her a traitor. But now team USA is toning down the criticism.

JIM TOOLEY, EXECUTIVE DIRECTOR, USA BASKETBALL: We look at this as an individual decision that Becky has made. And you know, she's in a position to feel free to do what she pleases in that regard. She's playing within the rules.

LAVANDERA: Hammon spends half the year playing in the United States and in the off-season plays for a professional team in Moscow, which provided her with Russians citizenship.

(on camera): Professional women's basketball didn't exist when Becky Hammon was growing up. So playing in the Olympics was the pinnacle of a career. Today, Hammon is 31 and she feels it's her last chance to fulfill that dream.

(voice-over): Despite being one of the most popular players in America --

UNIDENTIFIED FEMALE: I'm looking for a Russian jersey with Becky's name on it.

LAVANDERA: Hammon wasn't invited to try out for the U.S. team until she had already signed to play with the Russians.

So it's the gold medal match, team USA, team Russia tied and you shoot the last-second shot and you make it. How do you feel?

HAMMON: Of course, I ran through all these scenarios in my head, every scenario possible before I made this decision so I had to be comfortable with it. And this is a basketball game. You know, I still love my country.

LAVANDERA: Becky Hammon says she'll take the shot and hopefully make it. For her, the cold war ended long ago. Ed Lavandera, CNN, San Antonio.

(END VIDEOTAPE)

ROBERTS: Struggle downstream.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's been compared to a 3,000-year flood. There is no playbook to go by.

(END VIDEO CLIP)

ROBERTS: Residents trying to hold back the water. Bag by bag with the worst yet to come in some parts of Iowa.

Plus, clone, cuddling and cancer sniffing. The dog that could save millions of lives. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Coming up on AMERICAN MORNING -- flooded out.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: And our son was (INAUDIBLE).

(END VIDEO CLIP)

ROBERTS: Families chased off by flood waters get their first look at what survived.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's all wet. We can't do anything.

(END VIDEO CLIP)

ROBERTS: Jim Acosta on a painful homecoming. You're watching the "Most News in the Morning."

CHETRY: And welcome back to the "Most News in the Morning."

Elian Gonzales has gone from the cute little boy who was at the center of an international custody battle at age six now to a communist at the age of 14. He's a member of Cuba's Young Communist Union.

Our Shasta Darlington joins us live from Havana, Cuba, this morning, with more.

SHASTA DARLINGTON, CNN CORRESPONDENT: That's right. That's right, Kiran. Elian Gonzales is older, he's taller and he's back in the headlines. Taking the first step that for a select few lead to a bright political future in Cuba.

(BEGIN VIDEOTAPE)

DARLINGTON (voice-over): Remember the little kid at the center of a bitter U.S.-Cuban custody battle? Well, he's not so little anymore. Eight years after returning to his father in Cuba, Elian Gonzales has joined Cuba's Young Communist Union.

During a ceremony over the weekend, he was presented with a union card and vowed he would always follow the examples of Fidel Castro and his brother, Raul, Cuba's new president.

Elian is now 14 but he was just 6 years old when his mother was killed when a boat smuggling them to the United States flipped over. He was found clinging to an inner tube and handed over to relatives in South Florida.

Fidel Castro himself led the ideological battle to bring Gonzales back to Cuba and his father.

FIDEL CASTRO, FORMER CUBAN PRESIDENT (through translator): Little Elian will return to his homeland, to his family, to his school, he said. And after months of huge marches and heated speeches, Castro claimed victory.

DARLINGTON: In many ways Elian Gonzales' future was written the day he returned to Cuba. Over the last eight years, his family has had front row seats at Castro's rallies. At an early age, Gonzalez himself started to assume a public role, speaking at political rallies like this one.

ELIAN GONZALEZ, YOUNG COMMUNIST PARTY MEMBER (through translator): It's been five years since I was able to return with my dad and it was possible, thanks to my family and the Cuban people and Commander Fidel, he said.

DARLINGTON: Castro and Gonzalez also had a personal relationship. The aging president attended the young boy's birthday on more than one occasion. At this party, he helped him blow out the candles.

(END VIDEOTAPE)

DARLINGTON: With those credentials for most Cubans it comes as no surprise that Elian Gonzalez joined the ranks of those young people who most committed to Fidel Castro's revolution.

Kiran?

CHETRY: And how common is it to join this young communist organization?

DARLINGTON: Well, it's not entirely exclusive. This year, for example, there were 18,000 young people. But then again, not everyone does it. And it does show a certain commitment to the revolution and to the party that not all youngsters have.

Kiran?

CHETRY: Shasta Darlington for us live from Havana, Cuba, this morning. Beautiful, beautiful sun rise behind you.

Well, here's more on Elian Gonzalez in our "A.M. Extra." About eight years ago, it was April 22nd, 2000, that federal agents stormed a house in Miami's Little Havana to seize Elian. He was 6 years old at the time. He didn't return to Cuba for another two months, of course, in that well-publicize battles back and forth with his family.

Back home, he appeared at political rallies with the President Fidel Castro who is often watched over by bodyguards. And Castro even, as we heard from Shasta, attended Elian's birthday parties. In 2003, his father Juan Miguel was elected to the national assembly.

John?

ROBERTS: Just crossing the top of the hour. And here's what's making news this morning. The 16th of June. Sandbags submerged, now evacuated. Hundreds of people at Iowa City, Iowa, out of their homes this morning. In all, some 36,000 people in the state are homeless.

Tying the knot, legally.