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American Morning
GM CEO Forced to Step Down; Red River Remains Dangerous as North Dakota Braces for a Snow Storm; Obama May Face Cool Reception in Europe; New Images of North Korean Missile Seen on Launch Pad; Madonna Adoption Underway; China Accused of Hacking Into Computers Around the World; Candy Sales Soar; Reality on the Ground
Aired March 30, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Good Monday morning to you. It's the 30th of March. John Roberts together with Kiran Chetry, and we've got a lot of big news to tell you about this morning.
KIRAN CHETRY, CNN ANCHOR: That's right, including some news that broke overnight that we're going to be breaking down for you in the next 15 minutes. First of all, the one thing we want to talk about is the auto industry.
The embattled head of General Motors is resigning effective immediately. Rick Wagoner forced out after President Obama's task force decided that he was unable to craft a plan to save the automaker. And in just a few hours, the president will announce new plans to rescue the struggling auto industry.
We are all over the story. We have reporters live in Washington and Detroit.
Also, brand new pictures that you're seeing for the first time of the suspected long-range missile on a North Korea launch pad ready to go. A test could happen in days. North Korea insists it's carrying a satellite, but this morning Defense Robert Gates says that the U.S. may consider shooting it down if the missile heads toward the U.S.
And right now in North Dakota and Minnesota, the Red River is starting to recede but the danger is not over yet. This morning snow is in the forecast and there are some new concerns about just how long the makeshift dikes and levees will hold. We're live along the flood lines.
Also this morning, a deadly nursing home shooting spree. It happened in North Carolina about 15 miles north of Fort Bragg. Eight people killed Sunday including one nurse and seven patients. The suspect was shot by police. He's currently in custody at a hospital. They're not reporting a motive yet this morning.
ROBERTS: We begin with breaking news. And right now, Detroit on the verge of coming to a grinding halt. This morning, the CEO of General Motors, Rick Wagoner, is out. The White House pushed for his resignation and ordered GM and Chrysler back to the drawing board if they want more taxpayer money. It's all part of the administration's plan to restructure the auto industry. Yesterday, speaking on CBS' "Face the Nation" President Obama acknowledged Detroit has made some progress but said there's still a lot of work to be done.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: What we're trying to let them know is that we want to have a successful auto industry, U.S. auto industry. We think we can have a successful U.S. auto industry, but it's got to be one that's realistically designed to weather this storm and to emerge at the other end much more lean, mean and competitive than it currently is.
(END VIDEO CLIP)
ROBERTS: And we'll be staying on top of the story throughout the morning. Our Kate Bolduan is live at the White House. Christina Romans is here in the studio and ready to break down what this means for the future of the big three carmakers. Might have end up that there's only a big two.
But first let's go to CNN's Kate Bolduan. She's live outside the White House.
And some pretty tough talk it would seem, Kate, from the White House here on Friday with that meeting with Rick Wagoner telling him he's got to go if GM wants some money. They're really playing hardball.
KATE BOLDUAN, CNN CORRESPONDENT: It sure seems that they are. Good morning, John.
Well, President Obama himself has said these U.S. automakers, GM and Chrysler, going to have to see some painful and drastic changes. Exhibit A, you said it yourself, GM CEO Rick Wagoner is out. In a statement posted on the company's Web site, Wagoner stated, "On Friday I was in Washington for a meeting with administration officials. In the course of that meeting, they requested that I step aside as CEO of GM, and so I have."
This looks like it is the clean slate. That's really how administration officials are describing the path forward for ailing automakers, GM and Chrysler. We're expecting the formal announcement. That's set for a little later this morning from the president himself. But bottom line here, the administration says it's giving GM and Chrysler a failing grade, saying they have not proven their viability, that word that we said so much a few months ago, their viability in being able to be successful companies. And so they are not warranting getting more funding on the taxpayer dime.
That being said, they are going to give these automakers one more chance. They say that this industry is too important to the American economy and touches too many people. So GM has 60 days to prove it can really restructure. Chrysler has 30 and part of that may include what they're describing as some surgical bankruptcy. So we're going to learn more about that. ROBERTS: All right. Kate Bolduan for us live at the White House following developments there. Kate, thanks so much.
BOLDUAN: Of course.
CHETRY: And over the years, GM's Rick Wagoner has presided over staggering losses of money as well as market share. In 1994 when he took charge of North American operations, the company made up 33.2 percent of auto sales in the U.S. Last month, GM made up less than 19 percent of U.S. and truck auto sales.
CNN's Christine Romans joins us now. One of the big questions that we're asking this morning is the end of the big three?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, it's clear that the Obama administration wants to save and preserve this industry. I mean, he said so himself but not in the form that it is right now. And clearly the restructuring that has been under way has not shown enough progress for the president and his team.
GM has lost more than $80 billion over four years. Its sales in February down 53 percent. It has cut 60,000 hourly jobs since 2006. One thing after another showing that this company in particular is really in very poor health.
Is it the end of the big three? Some are saying that it should be the end of the big three as it was 10 or 15 years ago and that the companies from their own management and strategic perspectives had failed, had really failed. And then you get hit by this credit crisis and it makes it worse.
CHETRY: People are noting this morning it's interesting that the administration sort of swooped in there and said you don't look like you're getting the job done to the timetable that we talked about, you're out. And so some are saying are they holding the auto industry to tougher standards than they are to Wall Street in terms of both of these types of companies got billions in bailout money.
ROMANS: It's very clear that there are people who like to see the heads roll of some of the Wall Street executives, the mega (ph) executives. But these are two very different industries and it's very clear that the Obama administration is handling them both differently because yesterday the treasury secretary said we might see that it may be that the banks need more money and they will need a lot more money.
The auto sector problems I will point out started before this current credit crisis -- a crisis, of course, caused by Wall Street. But those problems have been brewing for some time and also the financial sector, whether people like it or not, this is the foundation for everything else, the foundation for the economy. So it's two different sectors and it will take two different approaches indeed.
CHETRY: Christine, thanks so much.
ROMANS: Sure. CHETRY: And also you can see the president's plan to rescue Detroit this morning live at 11:00 Eastern time this morning here on CNN and on CNN.com/live.
We also want to know what you think. Give us a call. Our number, 877-my-amfix. You can also log on at work, CNN.com/amfix -- John.
ROBERTS: Tomorrow President Obama faces perhaps one of the toughest tests of his presidency when he leaves for Europe. The polls show that he's still very popular there, but the agenda that he will be pushing could face a cool reception.
Our Jim Acosta is following the story live from our Washington bureau this morning. Not a lot of folks and the rest of the G-20, Jim, very happy with the way that the economy is going and in particular President Obama's plans to fix the economy.
JIM ACOSTA, CNN CORRESPONDENT: That's right, John. They've been herding cats here in Washington. This is going to be like herding cats that speak different languages. That's right, John. Good morning.
President Obama made a big splash on the world stage during the campaign but as the president is likely to find out firsthand at this week in London, times have changed. If the White House thought dealing with the Republicans in Washington was tough, try the French.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): This is not the welcome President Obama is used to seeing on the road, but the president will find more than protests when he meets with leaders of the world's biggest economies at the G-20 summit. The blame game over the financial crisis has gone global.
LUIZ INACIO LULA DA SILVA, BRAZILIAN PRESIDENT (through translator): It was a crisis that was created and spread throughout the world due to the irresponsible behavior of white people, blue-eyed people.
ACOSTA: From a racially charged rant from Brazil's president to the Czech prime minister's fiery assessment of the Obama's stimulus plan.
MIREK TOPOLANEK, CZECH PRIME MINISTER (through translator): All of these steps, combination and permanency is a way to hell.
ACOSTA: German Chancellor Angela Merkel is rejecting Mr. Obama's cause for a global stimulus plan telling the "Financial Times" newspaper "the economic crisis did not take place because we issued too little money."
OBAMA: And thank you to the people of Germany.
ACOSTA: The world has changed since Mr. Obama stood before 200,000 people in Berlin during the campaign when he vowed to repair America's damaged image around the world.
OBAMA: I know that I don't look like the Americans who previously spoken in this great city.
(BEGIN VIDEO CLIP, POLITICAL AD)
NARRATOR: He's the biggest celebrity in the world.
(END VIDEO CLIP)
ACOSTA: The outpouring of euro love was mocked then by Republicans. Now populist outrage has spread around the world.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Barack Obama is still very popular overseas. Public opinion polls show that, but he is more popular than his policies. It's kind of the same story back here. While Barack Obama is very popular, his policies like the stimulus, the bailout of Wall Street and the banks, not nearly as popular.
ACOSTA: While the focus of the G-20 summit will be to solve the crisis, now much of Europe and the world are skeptical of Mr. Obama's plans, which is why Treasury Secretary Tim Geithner is making a global appeal that this is no time to pull back.
TIMOTHY GEITHNER, TREASURY SECRETARY: You know, the big mistake government is making in a recession is they put the brakes on too early. They see that first glimmer of light and the impetus to policy fades and people put on the brakes and we're not going to do that.
(END VIDEOTAPE)
ACOSTA: President Obama's trip overseas will be the longest journey for him outside the U.S. since he's been in the White House. Eight days. The White House says the president will not only lead but listen, but the challenge in this crisis is that there is no shortage of voices, John.
ROBERTS: Jim, thanks very much. We'll be following that story very closely, a big one we've got this week. Thanks for the preview in the current race (ph).
ACOSTA: You bet.
ROBERTS: Kiran?
CHETRY: All right. You'll be hearing a lot about the G-20 this week, but what exactly is it? Here's more now in an "AM Extra."
The G-20 is made up of finance ministers and central bank governors from 20 nations as well as the European Union. It also represents 85 percent of the world's economic output. This week these items top the G-20 agenda: agreeing on a coordinated global stimulus package, confronting protectionism by individual countries, helping developing nations that had been hit hard by the recession and also toughening regulations and cracking down on financial markets. And developing this morning, brand new satellite images just coming in on of a suspected missile on a North Korea launch pad. We're now learning new details about the Defense Department's response should that missile head towards the U.S.
Also, the extreme weather not over yet. We'll tell you where they're bracing for another blizzard tonight.
It's ten minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning. Thirteen minutes past the hour. Time to fast forward to the stories that will be making news later today.
At 11:00 Eastern, President Obama will unveil the details of his plan to help the struggling auto industry in a news conference at the White House.
Also happening this morning, 10:00 a.m. Eastern, NASA unveils a full size mock-up of the spacecraft Orion. It will be on display at the National Mall in Washington. Orion is on target to bring people to the International Space Station in 2015 and to the moon by 2020. It's currently in the testing stages and will head down to Cape Canaveral, Florida after its stint at the capital.
And all day long we'll be watching the weather conditions in the upper Midwest. The swollen Red River began to recede slightly yesterday, still though remaining at dangerously high levels. Officials are warning residents in North Dakota and Minnesota to still keep their guards up. Forecasters say that a storm could bring in as much as ten inches of snow as well to the area.
Our Susan Roesgen is live for us in Moorhead, Minnesota this morning. Of course, 10 inches of snow the last thing they need. They also need to keep their fingers crossed, right, that these levees hold up?
SUSAN ROESGEN, CNN CORRESPONDENT: Boy, absolutely. You know, Kiran, I'm standing on a deck that used to look out over a backyard. Now, it's a backyard lake. The Red River is normally 300 feet from this person's home. Now you can see it's within like maybe two feet of this person's home. And with a winter storm on the way, things could just get worse.
(BEGIN VIDEOTAPE)
ROESGEN (voice-over): With a possible blizzard on the way, no rest for the weary. Even though the Red River is receding, the storm's high winds could push waves hard against the dikes. So the fight goes on. More National Guard troops.
UNIDENTIFIED MALE: Thank you.
UNIDENTIFIED MALE: Thank you. ROESGEN: And more sandbags. 29-year-old Aaron Johnson hauls them around on the back of his four wheeler.
AARON JOHNSON, HOMEOWNER: One goes down, we all go down.
ROESGEN: From the air, the river seems to be winning. Dozens of homes are surrounded and miles of farmland are swathed. But city leaders in Fargo and Moorhead believe the worst has passed and they are already pushing Washington for millions in federal aid to build permanent levees before next year's floods.
And remember Aaron Johnson on the four-wheeler? What you'd never know is that he broke his back two years ago and his legs are paralyzed but he's been working as hard as anybody else.
JOHNSON: I kind of made a -- I guess you can call it a pact with myself when I was in the hospital or before I even went to the hospital, I should say, and said if I come out of this, I'm going to -- you know, just being alive was quite an amazing feat for itself.
ROESGEN: Aaron loves this place and when many neighbors got out, he stayed.
JOHNSON: I don't let no one, you know, give me any special help or you know. I pretty much an independent guy. This doesn't stop me from being who I am, you know. It's just who I am.
ROESGEN: Sometimes even the force of nature is no match for the force of the human spirit.
(END VIDEOTAPE)
ROESGEN: And one thing to keep in mind here, Kiran, is that, you know, with those possible high waves here, rocking against the sandbag dikes, nearly every homeowner that's right along the flood area has a pump in the backyard, an electric pump to try to continually pump the water out.
And the neighbors have generally all across Fargo and Moorhead sort of come up with this plan where they patrol the dikes every couple of hours, and the person in this home may be asleep but his neighbor is probably watching the pumps to make sure that they don't go out because if a pump should go out, then water would come in this backyard and could eventually affect all the backyards up and down in this whole neighborhood.
CHETRY: Yes. It's all about teamwork and certainly, you know, making sure that everyone is protected. A team effort and really unbelievable. Thanks so much, Susan.
ROBERTS: You know, with all that snow coming, too, if they got suddenly a quick little warming spell, they could be right back in the soup again.
CHETRY: Ten inches they could get today?
ROBERTS: Yes. A lot of snow coming. Fingers crossed for all those folks up there in North Dakota.
Breaking news this morning, new pictures coming in from North Korea. It's a suspected long-range missile sitting on a launch pad. Find out why the secretary of defense says there's almost nothing the U.S. can do about it.
And happening now, Madonna in court to adopt another child from Malawi. Hear what she says to critics who say she should not go through with it. We've got the tape. We'll play it for you.
Seventeen minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: It's coming up on 20 minutes after the hour. We're following breaking news this morning. And take a look at this.
Brand new pictures just coming in of a suspected long-range missile on a launch pad in North Korea. The North says it plans to launch a satellite, but the Defense Department believes the mission is designed to bolster North Korea's military capability.
CNN's Barbara Starr is live at the Pentagon for us this morning. The president was saying yesterday, Barbara, he almost certainly expects a launch and a little confusion as to exactly what if anything the Pentagon might be able to do about it.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, John, at this point, even as they see this extraordinarily fascinating picture emerging from satellite imagery, all the indications are that the United States isn't going to do much about any North Korean launch.
Have a listen to what Defense Secretary Robert Gates had to say about all this just yesterday.
(BEGIN VIDEO CLIP)
ROBERT GATES, U.S. SECRETARY OF DEFENSE: I think if we had an aberrant missile, one that was headed for Hawaii, that looked like it was headed for Hawaii or something like that, we might consider it, but I don't think we have any plans to do anything like that at this point.
(END VIDEO CLIP)
STARR: What's he talking about? What he's talking about is there's really no U.S. plan at the moment to shoot this down, missile, satellite, whatever it is, unless, of course, it began to take some path, some trajectory that would be directly threatening to the United States. This image is just so fascinating, John, because compared to all the other images we've seen over the last couple of days, you can actually see the missile.
Analysts tell us they believe that previous images that we're seeing were very fuzzy because the North Koreans had a shroud on the missile to try and keep it from those prying eyes in the sky of U.S. intelligence satellites. Now they've taken the shroud off. It's there for the world to see. The expectation is they will launch sometime between April 4th and April 8th, that it will be a satellite on top of that missile. And the U.S. will watch and we'll see what anybody does about it.
ROBERTS: That photo also taken at a bit of an angle there, Barbara, so you can clearly see what looks like a long-range missile. But last week we were saying that if they launched, the president would have maybe five seconds to determine whether or not the missile was threatening and would issue an order potentially to shoot it down. This idea now that Secretary Gates says they're going to wait and see if it potentially affects Alaska or Hawaii or something like that, does that give him more time?
STARR: Well, it's about that five-minute window actually when the missile launches before it goes over Japan and something would need to be decided. The Japanese in fact, have some limited capability from missiles on their ships at sea if they choose to do something about it, hard to see that they would without consultation with the United States.
If the missile flies, you know, well past Japan, you get into that piece of geography over the Pacific where you begin to have to think about it, is this missile going to be good enough to fly a long distance? That's when they have to start really deciding what, if anything, they want to do. I think, not to be cavalier about it, an awful lot of people here hope that what happens is what happened back in 2006 that the missile basically flies for about 40, 50 seconds and then fizzles out and drops harmlessly into the ocean. That's the best case scenario for the U.S. at least.
ROBERTS: All right. Barbara Starr for us at the Pentagon. Barbara, thanks for correcting me. I didn't mean five minutes. Five seconds. That indeed would be a hair turner, wouldn't it?
STARR: Certainly.
ROBERTS: All right. Thanks, Barbara.
CHETRY: And right now, the Obama administration is about to engage Iran at a conference on the future of Afghanistan. So could this be an ice breaker for future dialogue with the Islamic Republic?
It's 23 minutes after the hour.
War games. The new evidence that Chinese spies could be watching you and your government. You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning.
Right now, Madonna will have to wait until Friday to learn whether a court has approved her petition to adopt another child from Malawi. You're looking at new images right now of Madonna heading into court earlier this morning.
We're taking you all the way to Nairobi, Kenya, where CNN's David McKenzie has been watching the story unfold all morning.
Hi, David.
DAVID MCKENZIE, CNN CORRESPONDENT: Hi, Kiran.
Well, that's right. And Madonna caused a stir when she went into the southeast African nation this weekend. She toured a village where she will be building a project, a school most likely. But it wasn't that project, it wasn't that reason everyone wanted to talk to her. It was the other reason she was in Malawi.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Can you tell us why you're adopting again?
MADONNA, SINGER: No.
UNIDENTIFIED MALE: Do you understand people's reservation about it seriously?
MADONNA: No.
MCKENZIE (voice-over): People are making it their business. Some criticizing her move to adopt a 4-year-old girl, Mercy. A noted charity Save the Children is pleading with Madonna to think again, saying that orphans should stay with the extended families. Opinion in Malawi is divided. Some saying that it's a big break for the child.
UNIDENTIFIED MALE: If you project 20 years from now, where will the child be if the child is left in the orphanage where it is, or if it gets a chance to get an education with Madonna?
MCKENZIE: This isn't the first time. Madonna created a firestorm in 2006 for adopting 13-month-old David Banda in Malawi and taking him to the U.S.
UNIDENTIFIED MALE: How did it go?
MCKENZIE: Charity group said that the star used her celebrity and money to ease the adoption laws. Those laws will be tested again with Madonna expected to make an appearance at a Malawian court.
(END VIDEOTAPE)
MCKENZIE: Well, Kiran, she made that appearance at a court in the capital. I've just learned from a court official in Malawi that, in fact, she might have to wait a few more days for her to see whether she can successfully adopt this child. That hearing has been delayed until Friday this week when a judge will make a ruling -- Kiran.
CHETRY: We were reading some reporting this morning, but perhaps you can shed some light on this and clarify. Is the grandmother of the child, Mercy, protesting this adoption and is she wanting to take the child?
MCKENZIE: Well, there had been some reports earlier in the weekend where the grandmother of that child -- that's right, she didn't want the child to go. We weren't able to verify those reports independently.
Does she now know that the family is keying for Madonna to take the child to the U.S. and officially adopt it as almost a sister to David Banda? But the issue here is very much split. At lot of people I've talked to in Africa say that this child has a great opportunity to go with this mega-star back to the U.S. They would have had a difficult life otherwise, but then other people we speak to, particularly aid workers and officials in adoption agencies say that this isn't the way to go. People should be reared by their extended families even if their parents die. So a difficult ethical problem certainly, Kiran.
CHETRY: Yes, absolutely. David McKenzie for us in Nairobi this morning, thanks.
And one program note, we are going to be speaking in our next hour to Dominic Nutt, the spokesperson for Save the Children in the U.K., and he also feels strongly that children should stay in their communities. So we're going to ask him about that this morning.
Meanwhile, it's 29 minutes past the hour. A check of the top stories we're following for you right now.
The CEO of General Motors resigning from his leadership of the trouble automaker. Rick Wagoner forced out by the Obama administration as the president will today push for deeper concessions from the nation's automakers. The president also rejecting turnaround plans from both GM and Chrysler. This morning, GM has two months and Chrysler just one month to come up with new survival guides if they want more taxpayer money.
And also right now, terror gripping eastern Pakistan. Authorities as we speak are locked in a fierce gunfight right now with militants who stormed a police training center in Lahore. Police say dozens of officers were taken hostage after militants hurled grenades then opened fire on the complex. So far, that attack has killed at least ten people and injured dozens more. We do have sources on the ground and we'll bring you the latest information as we get it.
And in the upper Midwest, there's growing anxiety as the swollen Red River threatens the makeshift dikes and levees. Right now, the river is beginning to recede, but it will not be at a safe level any time soon. And on top of that, more snow in the forecast, up to 10 inches. Residents in Fargo, North Dakota, as well as Moorhead, Minnesota now fearing that the river may start to rise yet again - John.
ROBERTS: Right now, President Obama is sending more troops to Afghanistan, vowing to disrupt, dismantle and defeat al Qaeda terrorists. Yesterday, on CBS's "Face the Nation," the president explained his decision. (BEGIN VIDEO CLIP)
OBAMA: What we want to do is to refocus attention on al Qaeda. We are going to root out their networks, their bases. We are going to make sure that they cannot attack U.S. citizens, U.S. soil, U.S. interests and our allies' interests around the world.
(END VIDEO CLIP)
ROBERTS: Secretary of State Hillary Clinton will push the Obama administration's new war strategy at a conference on the future of Afghanistan tomorrow in The Hague. And a lot of interest will be on Iran, which has a seat at that meeting.
Reza Aslan is a Middle East analyst and the author of the book, "How to Win a Cosmic War: God, Globalization and the End of the War on Terror." He joins us now, very early this morning from Los Angeles.
Reza, good to see you. So, Iran's participation in this meeting, what it could possibly offer and do you think it's likely to be of assistance?
REZA ASLAN, MIDDLE EAST ANALYST: Well, we definitely need Iran's help when it comes to Afghanistan for no other reason than Iran has some very vital supply lines that NATO can use to bring troops and humanitarian aid into Afghanistan.
And, of course, as you know, John, Iran was of enormous help during the initial Afghan war. So there's a lot of room here for cooperation between the U.S. and Iran when it comes to this renewed effort in Afghanistan.
ROBERTS: But Iran also seems to be playing both sides of the fence here. It has no love for the Taliban or al Qaeda, but then at the same time it would seem to be happy to see the United States tied up in Afghanistan.
ASLAN: Well, of course, Iran feels a little bit nervous. I mean, let's not forget that it's actually literally surrounded by U.S. troops from Afghanistan to Pakistan to Turkey to Iraq, et cetera. So, in some sense, you're right. Iran does want to be very careful about how much support it gives to the United States because it doesn't want the U.S. to get comfortable in Afghanistan.
But at the same time, Iran also recognizes that it has certain interests that are very much in alignment with the United States, chief among those being the issue of narcotics. Iran is right now spending hundreds of millions of dollars dealing with this ceaseless supply of drugs that are just coming out of Afghanistan and into Iran and it needs the U.S. help in order to stem that flow.
ROBERTS: Some talks have taken place already. On Friday in Moscow, it was a larger round of talks, smaller, though, than this meeting that will be held at The Hague tomorrow. Iran was there and some U.S. officials have said -- seemed to indicate that things went pretty well, but could the question out of tomorrow's conference is, could this be a foot in the door to face-to-face talks on broader range of issues between the United States and Iran. What do you think?
ASLAN: Well, there are essentially two camps when it comes to dialogue with the Iran. There are those who advocate a grand bargain approach, which means we just put everything out on the table from Iraq and Afghanistan to Iran's support for Hamas and Hezbollah to even the nuclear issue, and just deal with it all at once with the hope of moving towards rapprochement.
The other camp says, no, we need an incremental approach when it comes to Iran, that we need to deal with these issues one at a time. And, frankly, the issue that's easiest to deal, the issue in which U.S. and Iranian interests are most in alignment is Afghanistan. It seems to me that that's probably the route that the Obama administration is going to take.
So I do think that we can be somewhat optimistic about the fact that this meeting on Tuesday at The Hague can be the beginning of what would hopefully be a series of meetings to deal with all the other issues that are, you know, holding up these relations between America and the Islamic Republic.
ROBERTS: We'll see how it goes. Reza Aslan, thanks so much for getting up early this morning. We really appreciate it. It's always a pleasure.
ASLAN: Good to talk to you.
ROBERTS: Kiran?
CHETRY: All right. We're going to find out why the Obama administration now says that a "Don't ask, don't tell" military policy concerning gays in the military will be sticking around for a while.
It's 34 minutes after the hour.
More games. The new evidence that Chinese spies could be watching you and your government.
You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Beautiful shot this morning. New York City. It's partly cloudy right now, 46 degrees. It's going to be partly cloudy throughout the day, but at least it's going up to 51. And our Rob Marciano at 38 minutes past the hour is keeping an eye on the forecast for us.
So, we're -- you know, pretty lucky here, especially when you take a look at some the Dakotas and the central Plains, they could be looking at blizzard-like conditions today.
(WEATHER REPORT)
CHETRY: We will. We will. All right, Rob, thanks.
ROBERTS: Don't you always love to hear when you're sitting on an airplane, there's a ground hold at LaGuardia.
CHETRY: Yes, exactly.
ROBERTS: Going to get back to us in an hour.
The Chinese government possibly spying on your computer. They've hacked into systems around the world. We're taking you live to Beijing for more details on the serious cyber threat.
And, the GM CEO pushed out by the White House, forced to resign. So why did the guys who ran the banks into the ground get to keep their jobs? We're asking the tough questions this morning.
It's 40 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning.
Defense Secretary Robert Gates saying don't expect the military to repeal its "Don't ask, don't tell" policy any time soon. It's telling Fox News, Sunday, both he and President Obama have a lot on their plates right now. He says the Pentagon will continue to enforce the existing policy, which bars commanding officers from asking potential service members if they are gay, but still requires the dismissal of openly gay service members.
Vice President Joe Biden says the decade's old U.S. trade embargo against Cuba will stand. He made the remarks during a summit in Chile. Several South American leaders are urging the Obama administration to lift the embargo saying, it's crucial to improving U.S. relations with the region.
Brand new pictures of a suspected long-range missile on a launch pad in North Korea that could reach the United States. The test could happen in days. Right now, Defense Secretary Robert Gates Says the U.S. has no plans to shoot the missile down. Pyongyang says the rocket will simply carry a communications satellite into orbit and insist it's not a ballistic missile.
Well, also breaking this morning, the Chinese government could be spying on you. It's now under pressure to answer allegations that it's been hacking into computers around the globe. CNN's John Vause is live for us in Beijing this morning.
Good morning, John. What's this all about?
JOHN VAUSE, CNN INTERNATIONAL CORRESPONDENT: Hey, good morning, John.
Well, the investigators say that there is actually no evidence that any U.S. government computers were hacked. But in terms of sheer size of the number of countries which have been affected by this, they say this operation may in fact be the largest computer spying network ever uncovered.
(BEGIN VIDEOTAPE)
VAUSE: What began as an investigation into possible hacking of computers at the office of the Dalai Lama may have uncovered a vast network of cyber espionage, possibly originating from China and infiltrating so-called high value targets -- a computer at NATO, foreign industries and embassies in more than 100 countries.
His holiness says he doesn't know the Chinese government is responsible. When he called for is an investigation, told CNN there's no need for anyone to spy on his office.
DALAI LAMA, BUDDHIST MONK: If you are open, transparent, then no need for the spying, these things. If you want to know, ask directly. That's much better.
VAUSE: Researches at two universities, Toronto and Cambridge, discovered the global spying Web and called it Ghost Net. And say for almost two years, it's been devastatingly effective.
UNIDENTIFIED MALE: They can extract any document they wanted. They can turn on web cameras, turn on audio devices so that they can in effect use the computers as a listening device in the offices.
VAUSE: Ghost net spread initially by e-mail and its control service were traced to three provinces in China -- Hainan Island, Guangdong and Sichuan. The fourth in Southern California. Researchers in Canada have stopped short of blaming the Chinese government of outright involvement. "It is not inconceivable that this network of infected computers could have been targeted by state other than China, but operated physically within China."
Another possibility they raise, Chinese hackers freelancing their skills. Recently, one of the country's most infamous alleged hackers known as Top Fox was arrested in Beijing. Police say his Trojan program was made freely available on the Internet, and at one point was used to hack more than 30,000 computers a day, emptying bank account, accessing stock details and e-mails.
(END VIDEOTAPE)
VAUSE: And John, we've had a very strange day here in Beijing. We've tried repeatedly to get some kind of official comment from the foreign ministry. All they've told us is that there will be a formal response, quote, "when the time comes." So the statement will come, when their statement comes and that has been about it - John.
ROBERTS: The big question is what will the appropriate time be. John Vause for us in Beijing this morning. John, thanks so much.
CHETRY: Well, the head of General Motors falling on his sword this morning after the White House says you have to go. So why did the bank CEOs still get to keep their jobs? They're also getting bailout money, of course. We're breaking it down for you this morning. It's 47 minutes after the hour.
Business sweet in a sour economy.
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DYLAN LAUREN, FOUNDER, CEO DYLAN'S CANDY BAR: We've seen sales pick up. I don't know what it is. But I think people are happy here.
(END VIDEO CLIP)
CHETRY: The healing power of candy in a crisis.
You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning.
You know, as the recession deepens, unemployment widens. More and more Americans are actually adding on a household expense. Well, probably a small one relatively speaking. It's Tootsie Roll, Mary Janes, Gummy Bears, Chocolate Kisses.
Alina Cho joins us now on a sweet spot in this economic meltdown.
ALINA CHO, CNN CORRESPONDENT: Takes you back to your childhood...
CHETRY: Sure does.
CHO: ... just like that song does. No way.
Good morning, guys.
(CROSSTALK)
CHETRY: Bow Wow Wow, right?
CHO: That's right.
ROBERTS: I interviewed them.
CHO: You did?
ROBERTS: When they first came out.
CHO: They were very cool back in the day.
CHETRY: They have a hit after this?
CHO: They had a hit.
ROBERTS: One-hit wonders.
CHO: Yes. Good morning, guys. CHETRY: Hi, Alina.
CHO: Good morning, everybody.
You know, they're even making room for candy in their budget. Even in these tough times. So what is it about the sweet stuff? Well, in all this doom and gloom, it appears that a little something sweet goes a long way towards lifting your spirits.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: It's very comforting. I feel warm and fuzzy just standing here.
CHO (voice-over): Who wouldn't? Candy is comforting, especially in hard times. Just ask Dylan Lauren of Dylan's Candy Bar.
DYLAN LAUREN, FOUNDER & CEO, DYLAN'S CANDY BAR: We've seen sales pick up. I don't know what it is, but I think people are happy here.
CHO: A guilty pleasure without the guilt of breaking the bank.
BRIDGET LAWRENCE, CUSTOMER: It just makes you feel -- it makes you feel good. It gives you that comfort that we're all really searching for at this point.
CHO: It's happened before.
ED ROESCH, FOOD ANALYST, SOLEIL SECURITIES: Historically, if you look back in the 1930s, candy companies grew pretty well. And you actually saw the introduction of brands like 3 Musketeers, Snickers and Tootsie Roll Pops that, you know, we enjoy today. CHO: Those brands are still thriving in this current climate, while premium candy is suffering -- Hershey, Nestle and Cadbury stocks have outperformed the rest of the market. Hershey is even forecasting growth in 2009. A sweet escape.
(on camera): Have you noticed a change since like the economy took a downturn that certain things are doing a little better like say chocolate?
LAUREN: You know, I think chocolate will always be chocolate, but I noticed in nostalgia, that's picked up.
CHO (voice-over): Mary Janes, Good & Plenty, Gummy Bears and Swedish Fish, what people are -- well, craving these days.
LAUREN: They're really addictive so be careful.
CHO: And for the calorie conscious, there's always this T-shirt.
LAUREN: So that's a popular shirt this time actually, because it's kind of true.
CHO: No need to be stressed, all is well in candy land.
UNIDENTIFIED FEMALE: Easier times.
UNIDENTIFIED FEMALE: Simpler times.
UNIDENTIFIED FEMALE: Nostalgia.
UNIDENTIFIED FEMALE: That's comforting. We all (INAUDIBLE).
CHO: We need that right now.
UNIDENTIFIED FEMALE: That's right.
UNIDENTIFIED FEMALE: Exactly.
(END VIDEOTAPE)
CHO: We most certainly do. Now Dylan Lauren says she opened her store just after 9/11. At that time a lot of people told her she was crazy for doing that, then something very interesting happened. Dylan's Candy Bar was a huge success almost immediately. People were actually contacting her saying thank you for creating something so happy in such a sad time.
And guys, that's exactly what's happening right now. Nostalgia candy has actually seen an uptick in sales. This is what we're looking at here. Look at this Chunky, Good & Plenty, lollipop -- all this stuff.
CHETRY: (INAUDIBLE)
CHO: Yes. York Peppermint Patty, Sugar Babies -- all this stuff is selling really well in addition to chocolate, which always does well. But pick and choose, anything you guys want here. And then, I'm no dummy, you know. Here's your Gummy Worms. This is your favorite.
ROBERTS: I'll take the Nerds because I is one.
CHO: Swedish Fish.
ROBERTS: That were my faves -- Swedish Fish.
CHO: During the commercial break, I'm going to give you, guys, a taste of this Australian licorice, which is quite good.
You want one?
CHETRY: Anything that gets stuck in the teeth, right? Lovely.
CHO: Anyway.
ROBERTS: Is it real licorice?
CHO: It is. It feels good right at chewing. All right. Well...
(CROSSTALK) ROBERTS: Going to blow my head off with my high blood pressure.
CHO: But it's a sweet treat. A little guilty indulgence without paying a lot of money.
ROBERTS: There you go.
CHO: And people are actually making room for it in their budget right now.
CHETRY: Very sweet.
ROBERTS: Thank you so much.
CHETRY: Thank you, Alina.
CHO: You're welcome.
CHETRY: Fifty-three minutes after the hour.
ROBERTS: Breaking news -- General Motors CEO joins thousands of his own workers on the unemployment line. The government gives him the boot. Why some say he should stay.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I can't believe that the -- that our country, our administration, has the power to force a CEO out of his job.
(END VIDEO CLIP)
ROBERTS: After thousands of layoffs and billions in taxpayer dollar, the president puts GM on the clock.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We don't need any -- well, broke auto workers that can't buy their own products.
(END VIDEO CLIP)
ROBERTS: You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING.
It's been a day of intense violence in Lahore, Pakistan. Dozens of police officers held hostage after attackers took over a police training center. It launched grenades and also fired heavy gunfire. It's the fourth straight day of violence since the suicide bomber killed 51 people inside of a mosque.
For more on the president's plan to fight terrorism inside Pakistan, as well as Afghanistan, I'm joined by Barbara Starr at the Pentagon. Good morning, Barbara.
STARR: Good morning, Kiran. You know, many U.S. military commanders will tell you that the route to success in Afghanistan lies across the border in Pakistan. But a lot of questions about whether the president's Pakistan strategy can really work.
(BEGIN VIDEOTAPE)
STARR (voice-over): Another terrorist attack on a mosque in Pakistan's violent tribal region. Pakistan military operations continue in these mountains but success is questionable. President Obama warns it is here al Qaeda is planning new attacks against the U.S.
Mr. Obama sounds like he's tackling the crisis, telling Pakistani leaders if they won't go after al Qaeda and the Taliban, he will.
OBAMA: If we have a high value target within our sights after consulting with Pakistan, we're going after them.
STARR: And on CNN's state of the union, the top U.S. military commander also talked tough.
GEN. DAVID PETRAEUS, CENTCOM COMMANDER: If it ultimately comes to it that we will if necessary take action.
STARR: But a reality check quickly follows.
PETRAEUS: Let me caveat that very, very carefully though. And that is that there is no intention for us to be conducting operations in there certainly on the ground.
STARR: The reality, the U.S. is continuing ongoing military and CIA efforts. Limited reconnaissance and missile attacks from unmanned drones like these but no U.S. ground forces inside Pakistan.
A senior U.S. military official tells CNN there is now greater effort to share intelligence with the Pakistanis and hope they stop helping the Taliban by tipping them off.
There has been some success. Several attacks have killed top al Qaeda operatives. But skeptics point out it's difficult to get intelligence about where the bad guys are even across the border in Afghanistan, where Mr. Obama is adding another 21,000 U.S. Troops.
UNIDENTIFIED MALE: How are you going to get the intelligence on where the terrorists are? From the locals. And they're not going to want to help if you don't make them feel secure.
(END VIDEOTAPE)
STARR: They're going to try and do that through billions of dollars in aid, we'll see if it all works - Kiran.
CHETRY: Big challenge for sure. Barbara Starr for us at the Pentagon this morning. Thanks so much.
