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American Morning

U.S. Lawmakers Meet Castro Brothers; Somali Pirates Seize Americans; Cyberspies Penetrate Power Grid; Obama Back from Iraq

Aired April 08, 2009 - 08:00   ET

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


KIRAN CHETRY, CNN ANCHOR: Well, welcome once again. It's Wednesday, April 8, 8:00 a.m. here in New York. I'm Kiran Chetry along with Carol Costello. And we're following breaking news out of the most dangerous waters in the world, off the Coast of Somalia.

Americans are being held hostage now at sea. Hijacked by pirates. The owner of the vessel confirming to us here on AMERICAN MORNING just moments ago that they're holding 20 U.S. citizens. We have a live update for you coming up.

Well, President Obama is back home. We have some new pictures coming in overnight. Air Force One touching down at Andrews Air Force Base after the president ended his first overseas trip as president with an announced visit to Iraq.

And right now it appears the building blocks are being put into place to improve relations with the Castro government. Yesterday, both Fidel Castro and his brother, current Cuban President Raul Castro, met with members of the Congressional Black Caucus in Havana.

Earlier, I spoke with California Congresswoman Barbara Lee who was at that meeting, and I asked her why they made that trip.

(BEGIN VIDEO CLIP)

REP. BARBARA LEE (D), CALIFORNIA: It's time to change our direction in our foreign policy. The president is doing a phenomenal job in the world. Reshaping America's image and role in the world. And so we want to make sure that we have the proper information to make recommendations to the president, our secretary of state, and our speaker with regard to U.S. policy toward Cuba.

(END VIDEO CLIP)

CHETRY: I also asked the congresswoman in those who certainly oppose normalizing relations with Cuba feel that this group, this delegation should have spoken in dissidence as well. And to press the government more about human rights abuses. She told me that this was not the time for that. That they were just trying to have some sort of dialogue to begin. She also talked about Fidel Castro. Of course we know he's been ill. But she said he looked fine and was energetic, and knew that they were talking about improving U.S. relations.

Also, more on our big story this morning, breaking right now. Twenty Americans hijacked at sea by Somali pirates. It's taking place about 400 miles from the Somali capital of Mogadishu. It's the first vessel with an all-American crew to be captured by pirates.

Our senior international correspondent Nic Robertson has been in those waters. He joins us live with the latest now from London.

So a lot of questions about this situation, because it was a Danish ship but it was flying a U.S. flag, and if negotiations are to take place as has happened in the past, who would these pirates try to talk to and get money out of to free -- to attempt to free this crew?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the pirates got two options. One is they can use what is probably aboard that vessel, the satellite phone system there and call the ship's operators. Or they can, if there are other -- if they're operating in conjunction with pirates on shore, they will also be able to call the ship's operators. So there are two ways -- two way of making that demands known.

The ship's operator so far are saying very, very little. We do know that Maersk, who operates the ship, this particular vessel is operated by an independent U.S. subsidiary. The subsidiary often does a lot of contract work for the U.S. Department of Defense.

It's not clear what this particular ship was doing at the time. The ship's company says it's capable of carrying 1,100 of those very large shipping containers you often see on trucks driving down the highway. So it is a vessel that's capable of carrying a lot of materiel. Not clear what was on board at this particular time. The ship's company not saying.

But it is normal in these situations for the hijackers to contact their ship's company, and make what are often in this first case, very extravagant demands -- often tens of millions of dollars depending on what's on board the ship.

CHETRY: All right. Well, of course, that remains to be seen. Hopefully we'll get some new details on this, this morning. Nic Robertson for us. Thanks.

COSTELLO: Members of Congress confirming what some had doubted this morning, former Cuban President Fidel Castro still alive and kicking. Both the ailing leader and his brother, current Cuban President Raul Castro, met with members of the Congressional Black Caucus in Havana. Another sign Washington could be ready to change its policy toward the communist nation.

Jim Acosta is on this story for us this morning. He's live in Washington.

It was -- it was an odd site to see lawmakers sitting down with the Castro brothers.

JIM ACOSTA, CNN CORRESPONDENT: I think times are changing, Carol. And this is just one more indication of that. You know this Congressional Black Caucus trip managed to confirm one thing, Fidel Castro, as you said, is alive and well enough to meet with U.S. politicians. And it's the first time Raul Castro has met with American officials as Cuba's current president. More signs that there could be thawing in this Caribbean cold war.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): Members of the Congressional Black Caucus went to Cuba in search of the Spanish word for detente.

LEE: Given the new direction in our foreign policy, it's time to look at a new direction in our policy toward Cuba. The Cubans do want dialogue, they do want talks, and they do want normal relations with the United States of America.

ACOSTA: They also got behind closed doors with Cuba's ailing ex- leader Fidel Castro, who's not been seen in public since 2006.

LEE: Former President Fidel Castro is very engaging, very energetic.

REP. LAURA RICHARDSON (D), CALIFORNIA: And he also asked a very important thing. He said, how can we -- how can we as Cuba help President Obama?

ACOSTA: In a statement on the visit announced on Cuban television, Fidel Castro left the door open a crack. "We do not fear dialogue with the United States nor do we need confrontation to exist."

The Cuban Kumbayah come as support is building in Congress to end the U.S. ban on travel to the island. And the White House says it may ease restrictions on Cuban-Americans visiting their homeland, before the president attends a summit with Latin American nations this month.

JEFFREY DAVIDOW, PRESIDENT, INSTITUTE OF THE AMERICAS: The president has said he's going to do it. He's going to make some changes. The vice president has repeated that so they're going to happen.

SEN. MEL MARTINEZ (R), FLORIDA: We keep talking about change here in Washington. What about change in Havana?

ACOSTA: But Cuban-Americans in Congress are outraged. They don't want to see any changes that could lead to an end of the 47-year embargo on Cuba.

MARTINEZ: Having tourists on Cuban beaches is not going to change the equation of how to create the opportunity for democratic transition in Cuba.

ACOSTA: Restaurant owner Jessica Rodriguez is part of a younger generation of Cuban-Americans trying to overcome the reservations of older Cuban exiles.

JESSICA RODRIGUEZ, OWNER, CUBA DE AVE: I think it would be good to kind of open those doors, because you know I have so many customers who say, "oh, I wish I could go to Cuba," and I say, "I know, me, too." It would be great if the world could see what Cuba is or Cuba itself. (END VIDEOTAPE)

ACOSTA: The Congressional Black Caucus plans to deliver its findings to the White House, and they appear to have a message from the Castro brothers. They are ready to talk.

Now, during the campaign, President Obama said he'd be willing to meet with Cuba's leader Raul Castro. He may just get that chance.

And Carol, it's interesting to note, yesterday, when those Congressional Black Caucus members returned to Washington, it didn't take them very long to get back from Cuba. You would think considering the way the relations have been between these two countries that this is a half a world away-type of trip. It's only 90 miles from America's shores - Carol.

COSTELLO: Isn't that something? I mean, the real photo opportunity would be, though, if the president met with not Raul Castro but with Fidel Castro.

ACOSTA: That would be something.

And, you know, we've seen something close to this in the past. You know, Fidel Castro came to the United Nations back in the '90s when President Clinton was president, and there was a brief exchange during that time. So, it's not totally unheard of.

But -- but for something like that to happen under this administration, it would be quite something. And everything seems to be moving in that direction. Perhaps not with Fidel Castro, but maybe with Raul Castro. But this White House seems to be taking baby steps for the moment. They want to see just how these initial steps are received on in Cuba - Carol.

COSTELLO: I'm sure you will be watching for that moment to report.

ACOSTA: Absolutely. Yes.

COSTELLO: Thank you, Jim.

ACOSTA: You got it.

CHETRY: And meanwhile, President Obama is back home. And we have some new pictures overnight coming in from Air Force One touching down at Andrews Air Force Base. It was after the president's unannounced visit to Iraq.

Let's bring in CNN chief international correspondent Christiane Amanpour to talk more about this.

It's interesting because yesterday all of the speculation was he's coming back from Europe, he's coming back from Turkey, he may as well stop in Afghanistan. That's where he's sort of staked his claim as where he wants to focus our fight. CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: That's exactly right. He obviously went to Iraq, because it was closer, according to his aides. Because he wanted to talk about the political affairs with the Iraqi leadership, and also to say thank you to the U.S. troops. And again, he said you know, it's time for the Iraqis to take control of their own country. This, obviously, was met with great applause by the troops.

But you know what, even when President Bush used to say, we're here, we're going to do this fight, it was also met with great applause. They follow their commander in chief.

But this is President Obama saying, look, I am winding down from this one and winding up from Afghanistan. And in general, there has been very positive response from the Islamic world.

We've already talked about the positive response from Europe about this trip. But, you know, America's popularity in Turkey was at rock bottom. It's now jumped. America's popularity around the Arab world is jumping around the Muslim world. They're calling it a new breeze, a breath of fresh air, a new page is turning.

However, people are also saying, we want to see actions, not just words. As popularity sores, we want to know, are you going to step in on the Israel-Palestinian issue. Are you going to do something different in Afghanistan to give us, you know, hope and trust and a decent future? So there are these questions as well.

COSTELLO: Well, exactly, they are good questions. You have to put your money where your mouth is, because some people say, you know, you're just kind of doing -- I mean, it's great to be popular. But now is the time for the president to use his popularity to get something concrete. And critics say he didn't get enough at height of his popularity. So as we move down the line, what does that say?

AMANPOUR: Well, Carol, some people are saying that at the height of popularity, the beginning of a presidency such as this one, you can afford to take really bold actions with engagement with other new things.

On the other hand, others are saying -- and this is also a fact, that it is vital for America, not to be popular just because it's a popularity contest, but to be admired and respected in the world so that it can get its vital business of national security concerns done.

And most people believe, and certainly the polls and the analysts and the observers and all of the press and the media out there are saying that this president has and is turning world public opinion around. And, again, that is vital, but then it will need to be translated into action.

CHETRY: A little later, we're going to be speaking with Bobby Ghosh of "Time" magazine. He said that it was a missed opportunity to go to Iraq and not Afghanistan, because we've seen the president ask for help from our allies and from NATO, and how Afghanistan is becoming the new focus, yet he didn't stop there. AMANPOUR: You know, I was in Afghanistan a couple of weeks ago, and there was some talk. People kind of knew that he was going to do something after or before his European and Turkish trips. Nobody knew quite where or when, but people did think perhaps he might go to Afghanistan.

And it is true that that is going to be a major, and the major focus. Because President Obama has stated categorically that within -- by the end of 2011, U.S. troops are coming out of Iraq. He has a huge job to do to rescue the genuine progress that was made in Afghanistan after the Taliban and al Qaeda were routed post-9/11.

What he needs to do is not just continue the fight against al Qaeda, which has been going on for eight years, but provide an alternative in terms of development so that the people of Afghanistan can see that the United States and its allies are in it for the long hall. They're not just looking for a quick and easy way to get out. And the development will take place to provide these people with an alternative economy and some chance for a better life.

CHETRY: Christiane Amanpour, always great to hear from you. Thanks for being with us this morning.

AMANPOUR: Thank you.

COSTELLO: The shock from the economic free-fall seems to be wearing off, but is it near a turning point? Are things getting better? Christine Romans checking the markets for us.

And we're watching a big story breaking right now. Somali pirates seizing a ship with an all-American crew. Situation developing right now on the most dangerous waters in the world. We're working our sources at the Pentagon and around the world, and we'll bring you the latest.

It's 12 minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning.

Breaking news right now about your money. Markets overseas picking up where Wall Street left off. Europe and Asia right now in negative territory. This morning we're tapping the global resource of CNN.

Here's Kyung Lah.

KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT: I'm Kyung Lah in Tokyo with the markets here close down more than 2.5 percent. Across the entire Asia Pacific region, the markets were down. Sharply down. Hong Kong, Seoul, Shanghai, Australia, all were down, dragged down by some big losses on Wall Street, especially in the banking sector and concerns over weak corporate earnings. The fear here in the east is that the mess in the west, despite some recent better days, has many more days to go before it's all cleaned up -- Kiran, Carol. COSTELLO: Wall Street also bracing for a volatile day as companies begin to report earnings. Dare we hope -- no, I don't even -- I'm not even going to say that, Christine. Because, you know, yesterday we were talking about bright spots and that's pretty much...

CHETRY: Yes. They were talking about the possibility of a turnaround in four months.

(CROSSTALK)

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And some top economists this morning saying that look, the economy is not imploding and detonating. It doesn't mean there's a recovery. He's saying that, you know, the markets and, you know, people's confidence got a little bit of ahead of themselves. And we had a nice, big rally. A 20 percent rally. A bear market rally in the market. It feels very, very good. But we have some reasons to be a little bit cautious going forward here.

Companies are going to start reporting their earnings, and they're going to be terrible. This is going to be our first chance to really look at real numbers for what's happening for these companies. We know from the CEOs and people in these companies that they've been shocked by what's happened in the economy over the last year. We're going to be able to see exactly what those numbers look like.

Also, you have GM preparing for bankruptcy. You have analysts who are saying that this could be very difficult if there is a GM bankruptcy, even if it's surgical and structured. The White House says they hope that they're selling cars and people are working through any kind of bankruptcy if it should happen, but still that's something that has made us nervous.

COSTELLO: They have that scooter now.

ROMANS: They have that scooter. That's right. That scooter. That...

CHETRY: The PUMA.

COSTELLO: The PUMA.

CHETRY: But they also are talking about -- I mean, in terms of this bankruptcy, it's something that we've talked about with toxic assets as well is a good GM and a BAD gm. So there still going to be a GM.

ROMANS: Absolutely. Absolutely. But you have consumer confidence still fragile here right now. The White House wants to make sure that people are still buying cars. If they can buy cars through any kind of bankruptcy. So that's a little blip to get through. And then, you know, the fragile banking system. This is something that we've heard again and again. It's something that still needs attention.

So these are all just warning signs on the road. But what we can say is the shock is wearing off. When I talk to people who are making decisions for their businesses, the shock is wearing off. And that's, in a way, a small bright spot. Because now they can start to make decisions on the information that we have and go forward.

COSTELLO: So we're used to being in this economic hole now. Now we can figure ways to get out of hole.

ROMANS: Right. And maybe that's a first step forward. Also we know that the survey show again and again the American people feel a little more upbeat about things, and maybe that's where confidence begins. If people just get so tired of being so darn being pessimistic. Maybe that's how confidence start to come back.

CHETRY: If they can find a job, they can get some of that confidence back. A big problem.

ROMANS: That's right.

COSTELLO: They are shopping more, because there was a lot of Top Shop that opened.

(CROSSTALK)

CHETRY: (INAUDIBLE), we cannot go there.

COSTELLO: I know.

CHETRY: We're too old.

ROMANS: Top Shop, it's like $1,000 blouse or something?

COSTELLO: No, no, it's cheap. It's Kate Moss.

(CROSSTALK)

ROMANS: Oh, it is? See I don't even know. I'm so out of it.

COSTELLO: Just because we're out of the demographics.

ROMANS: I know. I know.

CHETRY: We'll get you a pair of flutter (ph) leggings, though, next time Lola goes there.

ROMANS: Oh, tomorrow. Look for this tomorrow.

CHETRY: All right. Well, thanks, Christine.

Meanwhile, we're following breaking news right now. We've been on top of this story all morning. The situation going on right now off of the Somali Coast, where pirates have seized a ship with an American crew. We'll talk to a former Navy SEAL live about the danger to U.S. citizens abroad, and what possibly is going to be happening in terms of negotiating a release.

Also, was President Obama's surprised visit to Iraq a mistake? We're going to hear one journalist who says that he should have done something else instead. Nineteen minutes after the hour.

(COMMERCIAL BREAK)

COSTELLO: Big story developing right now in the dangerous waters of Somalia. Pirates seizing a ship with an all-American crew. Twenty U.S. citizens now in danger. Joining us now live from Washington is Kaj Larsen, a reporter for Current TV and a former Navy SEAL.

Welcome.

KAJ LARSEN, FORMER NAVY SEAL: Good morning, Carol.

COSTELLO: And thanks for coming in because we really want to get to the bottom of this since 20 Americans are on board. So what happens now with the hostages? So the pirates come on board this ship. What usually happens now with the hostages on board?

LARSEN: Well, the interesting news is that there's a precedent for this. So, piracy has become a cottage industry in Somalia. So, there's actually a business system that will take place. The pirates know exactly who to call. Some ransom will be negotiated. And, ultimately, an insurance company or the head of the shipping company will pay the ransom. It will be delivered, most likely, via an air drop. Less likely, hand carried to the pirates in Somalia. And, hopefully, at that point, the hostages will be released.

COSTELLO: How are the hostages usually treated in these situations?

LARSEN: That's actually the good news, is that, generally, because they know that they're likely to get their money, the hostages have been treated well. That being said, it's still quite an uncomfortable place to be a hostage off the coast of Somalia. COSTELLO: So, it's a Danish-owned ship but was flying an American flag. Would that make any difference at all to these pirates that it was flying an American flag? Would that be a better target since we're such a rich country?

LARSEN: It's sort of unlikely. The pirates are pretty agnostic. Again, this is -- this is a business transaction for them and it's more likely that they were in proximity to the ship and that they're grabbing it because of the ease and their ability to take it down.

COSTELLO: OK. It's really complicated about who owns this ship because there's something about it. It's a subsidiary of an American company. We're not really clear about that right now. So, who would the pirates negotiate with? Because usually when you ask the United States for money in a hostage negotiation, the United States doesn't turn over the money.

LARSEN: Correct. The international shipping business is a murky business. And they have a system called, flags of convenience, where they fly different ships. In this case, it's most likely that the ransom will be negotiated with either the insurance representative for the shipping industry or with the shipping line itself. The U.S. is most likely not going to be involved in the negotiations for the hostages themselves.

COSTELLO: Has anyone ever turned down the pirates and said we're not going to pay the money?

LARSEN: Not that I'm aware of. I mean, the shipping companies are aware that their personnel are at risk in this case. And you know, last year, the pirates took in somewhere in the neighborhood of $30 to $50 million. So, this is an extraordinarily lucrative and successful business model that they have going here.

COSTELLO: OK. So, it's a ship and it's in dangerous waters. It's flying an American flag. It has an American crew. And everybody's wondering, wasn't there security on board? And how did the small band of pirates manage to capture a ship with so many Americans on board?

LARSEN: Yes. It's a totally great question. And it's not clear yet. The details haven't come out what kind of security measures or precautionary measures the ship had on board. But it's not quite as difficult as you'd think. These -- what's important to understand is that Somalia is a lawless country right now with clan warfare and civil warfare going on, and ammunitions and arms are abundant in Somalia. So it's not difficult for a small band of pirates armed with AK-47s and rocket-propelled grenades to take down a ship in the middle of night.

COSTELLO: Unbelievable. Of course, we'll be -- we'll continue to follow this story. But Kaj Larsen, thanks so much for joining us and bringing us better understanding of the situation. We appreciate it.

LARSEN: Thank you, Carol.

CHETRY: So, a "Time Magazine" journalist joins us to talk about why he felt our president made the wrong move by making a stop over in Iraq. He's going to be on here to explain.

Twenty-five minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning; 28 minutes after the hour now.

We're following a developing story for you this morning. National security officials say that the nation's electrical power grid has been breached by foreign cyberspies, leaving behind software that could cause a massive failure of electricity during a crisis or war. Officials say that the spies come from China, Russia, as well as other countries.

Well, our president's back home now. These new pictures coming in overnight. Air Force One touching down at Andrews Air Force Base after President's Obama's unannounced visit to Iraq - Carol.

COSTELLO: And just hours before the president's visit to Baghdad, dozens were killed in six attacks across the Iraqi capital. The version of Iraq the president saw still very different from the reality on the ground. Our Pentagon correspondent Chris Lawrence is live with the latest for us this morning.

Good morning, Chris.

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Good morning, Carol.

You know, in one sense, the situation on the ground is a good one. U.S. officials say that overall violence in Iraq is down 90 percent since its high point two years ago. But there's reason to fear that extremists may be regrouping.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): Cameras flash. Soldiers cheer. That's the Baghdad President Obama saw.

But just 24 hours earlier, Baghdad's residents saw this: at least six attacks in one day. Car bombs, roadside bombs, more than 30 people killed.

Tension has been rising between the Shiite-led government in Sunni paramilitary units, groups the U.S. helped organize to secure their own neighborhoods. Iraq's president ordered Iraqi forces to take rapid steps to stop the violence from spinning out of control, but as violence ticks up, some American combat troops are already pulling back from Baghdad as part of the agreement to leave the city by June.

BRIG. GEN. MARK KIMMITT, U.S. ARMY (RET.): There are some Iraqi units that this may be the first time that they've ever been independently responsible for terrain, for battle space, for that area of responsibility.

LAWRENCE: Kurds and Arabs are also battling over autonomy in northern Iraq and which groups will control the oil money that comes out of there.

FAWAS GERGES, MID EAST SCHOLAR, SARAH LAWRENCE COLLEGE: The challenge is not just for the Iraqi security forces to take steps to bring about stability, the greater challenge lies on the Iraqi political leadership to create a more inclusive and representative nationalist government.

(END VIDEOTAPE)

LAWRENCE: And U.S. defense officials say that so far the violence is not at a level where it would alter their plan, which is combat troops pull back to major cities by June. Then, those combat troops leave Iraq by August of next year, and the rest of the troops follow by the end of 2011 - Carol.

COSTELLO: Chris Lawrence reporting live from Washington, thanks.

CHETRY: Well, President Obama says that he made the surprise center of Iraq mainly to thank U.S. troops for their service. Let's listen.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: You had given Iraq the opportunity to stand on its own as a democratic country. That is an extraordinary achievement. And for that, you have the thanks of the American people.

(END VIDEO CLIP)

CHETRY: Our next guest, though, thinks that the president's trip to Iraq sends the wrong message. Bobby Ghosh is a senior editor at "Time" magazine He was "Time's" former Baghdad bureau chief as well, and he joins us from Washington.

Bobby, great to talk to you this morning. Thanks.

BOBBY GHOSH, SENIOR EDITOR "TIME" MAGAZINE: Likewise, Kiran.

CHETRY: In your article, you wrote Baghdad is the wrong choice for Obama, Iraq is Bush's war. Obama's main contribution to Iraq has been to criticize the war while on the campaign trail, so you believe that he really shouldn't have visited Iraq.

GHOSH: I think he should have gone to Afghanistan first. That is the war that he's taken ownership for. That is the war he has said repeatedly must be won. He's sending 21,000 additional troops there this year and he's described it as the right war. If it's the right war then that would have been the right place for him to go.

CHETRY: Bringing up some pictures now, the troops that are reacting to the president's visit. I mean, a lot of them just looked jubilant to see him, thrilled, some of them crying. Isn't it important for the commander in chief to visit a war zone and to show support for the people who are actually serving and fighting to defend America?

GHOSH: Absolutely it is, but it's a question of picking which one you go to first. Stopping by in Baghdad on the way back from Kabul would make eminent sense, but if Afghanistan is the war in which this administration is focusing, its attention, its resources, its political capital, then that's the war that the president should have visited first. He's spent a lot of time in Europe trying to persuade the Europeans to ante up more in Afghanistan. He's trying to persuade the American public to be more patient in Afghanistan. Why wasn't he there?

CHETRY: And explain for us why it sends such a message when the commander in chief visits a nation especially a nation that we are - in Afghanistan of course it's a difficult situation. We're certainly not at war with Afghanistan but that's where we're fighting and that's where he wants to move, you know, the central focus to target the Taliban and to target al Qaeda. Why is it so important to be in that nation?

GHOSH: Well, symbolism is important in these situations. You want the Afghan people to know that the American president is not just speaking words on television camera, but is following up with action. You want the Afghan people to know that the American president is fully committed to winning this battle on their territory.

It's also an important symbol to send around to the rest of the world. Baghdad, my home for four years, I love it dearly but Baghdad doesn't need another visit from an American president right now. A lot of things that President Obama said while he was in Baghdad, especially when he spoke to the Iraqi leadership, that could be done by Robert Gates. That could that be done by Hillary Clinton. That could be done by the ambassador there. The president, I feel, should have been in Afghanistan which is right now much more mission critical.

CHETRY: And you say that Afghanistan is Obama's - how much like Iraq was former President Bush's war. How much of President Obama's legacy is now riding on this success of what happens in Afghanistan?

GHOSH: I think a great deal. He's taken ownership of it. He was sending American troops into harm's way there. Throughout the election campaign when he was a candidate, he described this as the war that was critical now. He has just announced a major policy review in Afghanistan and Pakistan. It is - his name is now inextricably linked to Afghanistan and Pakistan and what happens there will have a tremendous bearing on his legacy.

CHETRY: It's also politically charged to talk about the words quagmire and to compare Afghanistan to Vietnam, but some have done that. And said that this is a no-win situation for the president. How does he sort of visualize an end game for when we get out of Afghanistan?

GHOSH: I think it'll be a while before there's any talk of an end game. There is some serious fighting to be done. I think we'll see a lot of it this summer and possibly in a couple of years, from a couple of years from now. General Petraeus is not using any language to suggest that he's got an end game in mind and I doubt we'll hear that from the president. I think everybody is hunkering down for a long and difficult fight.

CHETRY: All right. Bobby Ghosh, senior editor of "Time" magazine, thanks so much for being with us this morning.

GHOSH: Anytime, Kiran.

COSTELLO: Cyber spies attack our electric grids, leaving behind software that could try and shut it down. So how big of a threat is this? We're talking with a former White House Homeland Security adviser. That's just ahead.

It's 35 minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back. We're monitoring breaking news coming out of the dangerous waters off of Somalia. An American crew being held hostage by pirates right now. Hundreds of miles offshore. There is a look at that boat. The owner of the hijacked cargo ship confirmed 20 U.S. citizens were on board. The nearest U.S. Navy warship reportedly 300 nautical miles away at the time of the hijacking. We're waiting now for updates from the Pentagon and we'll bring them to you as soon as we get them.

COSTELLO: And turning to a story still breaking this morning, national security officials confirming cyber spies have infiltrated the country's electric grids leaving behind software that could shut off our electricity. The officials say the spies come from Russia, China and other nations.

Siobhan Gorman is the reporter who broke the story in this morning's "Wall Street Journal." She joins us now live from Washington.

Welcome.

SIOBHAN GORMAN, INTELLIGENCE CORRESPONDENT, "THE WALL STREET JOURNAL": Thank you.

COSTELLO: So tell us about this. How are cyber spies able to break into our electrical grids?

GORMAN: Well, our electrical grid is connected to computer networks which are connected to the Internet. And that means that they can actually be accessed remotely from wherever in the world a cyber spy is looking to, you know, send signals along to try to find vulnerabilities in those computer networks and penetrate in and sort of start looking around, doing surveillance, and figuring out where the controls are - what turns things on and what turning things off.

And experiments that have been done in labs have actually shown that you can take out portions of the electrical infrastructure with a physical attack throughout cyberspace such as taking out, blowing up a generator.

COSTELLO: Well, can they actually - are they actually able to do that now?

GORMAN: It is possible. I've not heard anything from any national security official to suggest that there's some sort of imminent threat or that anybody is seeking to do it right now. But it sounds like it's actually more of a form of contingency planning for cyber spies, perhaps from China or Russia, who might seek to have that option available to them if we're in a conflict with them of some sort.

COSTELLO: I was just wondering what the intent would be because you know, China would not want to disrupt our economic system right now. Because you know we're all tied up with them.

GORMAN: Yes, right now it certainly seems that China, for example, would have little incentive at all to do something that would hurt our economy. It really does seem like a kind of contingency planning.

So, if there is a conflict over Taiwan or over some other issue if there is some sort of crisis, this is an option that is available to them if they thought to activate tools that they left behind that would allow them to take out some portion of our electrical infrastructure and this is not just exclusively the electrical infrastructure.

My understanding from speaking with various officials is that it's definitely affected infrastructure quite broadly. Much beyond the electrical grid.

COSTELLO: Shioban Gorman, thanks for filling us in with the details that you were able to find out.

We wanted to turn now to Frances Townsend. She's a former Homeland Security adviser for President Bush and a CNN national security contributor. And she's on the live now from Washington.

Good morning, Frances.

FRANCES TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: Good morning, Carol.

COSTELLO: So Americans are listening to this and probably many are wondering how could this happen?

TOWNSEND: Well, you know the Internet has been a great source of our economic strength. But, of course, the more we rely on it, the greater a vulnerability it represents. And so, when I was back in the White House, we began looking at these vulnerabilities.

And Shioban's quite right, it's contingency planning. And remember the electrical outage which is not a cyberattack in 2003 in New York. Suddenly you realize that subways rely on it, elevators rely on it, refrigeration. Many things are affected when the backbone of that are our cyberinfrastructure.

COSTELLO: OK. So the government is looking into it and I know that it's a priority supposedly of the Obama administration. But what concrete steps can the government take to get these people you know like out of our electrical grids?

TOWNSEND: Well, Carol, I can't really speak to the sort of foreign state actors, the Russia and China, and I'm not sure that the "the Wall Street Journal's" been able to confirm that. But, I will say to you is we know that we have this aging infrastructure that needs reinvestment.

The Obama administration's talked about using the economic stimulus package to strengthen and invest in our infrastructure and this is a perfect example of how vulnerable we are and why we need that long-term investment. The Federal Energy Regulatory Board Commission has set standards for redundancy and resiliency to mitigate against, to make us less vulnerable in this regard. And I think what you're hearing is much more needs to be done. COSTELLO: Well, absolutely. And it sounds like much more needs to be done right now. But with our current problems in this country, how likely is that?

TOWNSEND: Well, I do think that, you know, the economic stimulus package talks about reinvesting in our infrastructure. And the electrical grid, our financial and economic information systems, all of that are important pieces to reinvest in the infrastructure, to reduce the vulnerability.

COSTELLO: Frances Townsend, thanks for joining us this morning. We really appreciate it.

TOWNSEND: Thanks, Carol.

CHETRY: Well, two big victories this morning for supporters of gay marriage. We're going to tell you about changes in Washington and Vermont and what it could mean for your state.

It's 43 minutes after the hour.

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CHETRY: Welcome back to the Most News in the Morning.

A live look right now. This is the Windy City, Chicago. A little chilly out there. It's supposed to be spring. Right now it's 33 degrees though, partly cloudy but going up to a high of 53 degrees.

(WEATHER REPORT)

COSTELLO: Big day for the Boston Red Sox. And one of their biggest fans, Senator Ted Kennedy, threw out the ceremonial first pitch at Fenway Park for the season opener against the Tampa Bay Rays. Kennedy was tossing to former Red Sox great and newly elected hall of famer Jim Rice. The Massachusetts senator, as you know, is battling brain cancer.

He looks pretty good. He looks happy and good for him.

CHETRY: Yes, he does. He looks very vital and robust. He doesn't look bad.

COSTELLO: It took him a couple of tries and but he did it.

CHETRY: It'll take us a couple of times, too.

COSTELLO: I have a great arm.

CHETRY: You do?

COSTELLO: Better see this.

Supporters of gay marriage are celebrating this morning because there are big changes in Washington, D.C. and in Vermont. We'll tell you what they are and if your state will be next. It's 48 minutes past.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JON STEWART, TV SHOW HOST: No nuke - wait a minute, I've heard that speech before. Oh my god, Obama's not James Bond. He's...

OBAMA: I will lay out an agenda that seeks the goal of a world without nuclear weapons.

SUPERMAN: Effective immediately, I'm going to rid of our planet of all nuclear weapons.

STEWART: If you're going to give a speech where you steal from a "Superman" movie, don't go with "Superman IV." Superman, you got to go with...

UNIDENTIFIED MALE: Kneel before Zod, son of Jarel.

(END VIDEO CLIP)

COSTELLO: Did Superman even accomplish that? I don't even remember.

Welcome back to the Most News in the Morning.

Gay rights advocates celebrating two big victories this morning. Vermont is now the first state to legalize gay marriage through a legislator's vote. Gay couples can now be legally married. That will start on September 1st. And yesterday, the state house managed to get the 100 necessary votes to override Governor Jim Douglas' veto of that bill.

And in Washington, D.C., it's city council voted 12 to zero Tuesday in favor of allowing same-sex marriages performed in other states to be recognized in the nation's capital.

Alina Cho is following this story. You know, the strange things about this, gay couples can't get married there but will recognize gay marriages from other states.

ALINA CHO, CNN CORRESPONDENT: And it could go to Congress. That will be really interesting if that happens.

Carol, good morning. Good morning, everybody.

You know, let's talk about what happened in Vermont. First, remember this is the state that invented civil unions back in 2000. And now Vermont has become the first state in the nation to legalize gay marriage through legislative action not a court ruling. That is key.

So now there are currently four states that allow gay marriage - Vermont, Iowa, Connecticut and Massachusetts. Four other states currently have bills before lawmakers to allow same-sex marriage. They're New Hampshire, Maine, New York and New Jersey.

Now opponents of same-sex marriage, like Family Research Council president Tony Perkins, are using some pretty fiery language to condemn the votes in Vermont and in Washington. Perkins' quote - listen to this - "Same-sex marriage is a movement driven by wealthy homosexual activists and the liberal elite determined to destroy not only the institution of marriage but democracy as well."

So, how do Americans feel about had? Well, pretty evenly split. In fact, the CNN opinion research poll out in December shows that 55 percent of adults believe marriage between gay and lesbian couples should not be recognized by law, while 44 percent said yes they should be recognized.

Now, the vote in Washington is interesting, as I mentioned, because if approved this measure would then be sent to Congress for a legislative review and a vote. That is because, as many people know, Washington is not a state, it's a district. So, its bills must pass through Congress first and that could make for a very interesting showdown.

Now supporters call the recent votes to legalize gay marriage a watershed moment, showing there is growing acceptance of the idea. That it's becoming more popular. Opponents believe that this will serve only to embolden the other side.

Where does President Obama stand on this? Well, Carol, he says he supports civil unions, but is still against same-sex marriage.

And again, you bring up Washington and what's happening there. If this goes to Congress, I mean, it will be really interesting to see this debate once again play out on the national stage but really with an actual vote. So we'll be watching this one very closely.

COSTELLO: It'll be - I mean, I'd be shocked if it goes through Congress.

CHO: Well, that's what a lot of people are saying, but you know you never know. There's a new administration. New sheriff in town. Never know what will happen.

COSTELLO: Yes, but - and even President Obama's really not for gay marriage.

CHO: That's right, but you never know.

COSTELLO: You're right, you never know. These are different times as they are - Kiran.

CHETRY: All right. Thanks so much, guys.

Well, she's a vision in wax. First lady Michelle Obama now on display at Madame Tussaud's in Washington. Jeanne Moos waxing poetic about who the first lady is wearing.

It's 54 minutes after the hour. (COMMERCIAL BREAK)

CHETRY: Welcome back to AMERICAN MORNING.

We're monitoring breaking news coming off of the dangerous waters of Somalia where an American crew is now being held hostage by pirates right now hundreds of miles offshore. The owner of that hijacked cargo ship is confirming that 20 U.S. citizens are on board. The nearest U.S. Navy warship reportedly 300 nautical miles away at the time of that hijacking. And again, we've been reaching out to find out as much information as possible. We're still waiting for updates now from the Pentagon and we will bring them to you - Carol.

COSTELLO: Michelle Obama made quite a splash in a recent trip overseas. Now, America's first lady is wowing her adoring fans in wax.

Here's Jeanne Moos.

(BEGIN VIDEOTAPE)

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT (voice-over): First, the press waxes lyrical over the real Michelle Obama. And now we're waxing lyrical over wax.

UNIDENTIFIED FEMALE: Oh, look at that woman.

MOOS: And if looking isn't enough, at Madame Tussauds...

UNIDENTIFIED FEMALE: You can hug her and kiss her, everything.

MOOS: ...the wax Secret Service won't stop you.

UNIDENTIFIED FEMALE: What do you think?

UNIDENTIFIED CHILD: Yes.

UNIDENTIFIED FEMALE: Yes?

UNIDENTIFIED FEMALE: It looks exactly like her. It's scary.

MOOS: She's wearing one of her trademark cardigans, which covers up a sleeveless dress.

UNIDENTIFIED FEMALE: Inspired by the purple dress that she wore the night that her husband clinched the nomination.

MOOS: He seemed to be clinching her more than the nomination. If we're so interested in a dress worn by a wax first lady, well, it's just an extension of the fascination with fashion during her just completed overseas trip.

UNIDENTIFIED FEMALE: Mrs. Obama, are you happy to be here? MOOS: On the "Huffington Post," her style was praised. It was panned. "Michelle Obama has lost her mind," "three reasons she's suddenly a fashion disaster," "a dud for wearing an outfit too casual for the queen."

We were accessories to the crime of analyzing accessories -- right down to Mrs. Obama's favorite Azzedine Alaia belt.

ANYA STRZEMIEN, STYLE EDITOR, HUFFINGTON POST: It's the only thing that the president does not like in her wardrobe. He calls it her Star Trek belt.

(VIDEO CLIP)

MOOS: And we were star struck. The "Huffington Post" ran polls so readers could vote love it or leave it on the first lady's every outfit.

Which was her greatest hit?

An Azzedine Alaia dress she wore to the NATO concert.

Her biggest bomb?

This Moschino shirt with bow: "Clown bow screams dowdy," "a bow wow bow."

STRZEMIEN: There were 1,500 comments.

MOOS (on camera): On a bow?

STRZEMIEN: Yes, on a bow. And it was the number one story on our site on Sunday.

MOOS: On the whole site?

(voice-over): But at least her bow was bigger than French first lady, Carla Bruni's. It's tough being a fashion plate for the whole nation to dine on, when even your wax figure is mobbed by the media.

UNIDENTIFIED BOY: I'm just freaked out.

MOOS (on camera): The way the first lady was laid low by her bow makes you want to check your collar.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

COSTELLO: I love that bow.

CHETRY: Jeanne, you look great as always.

Before we leave, I just wanted to show you a couple of pictures from the wonderful luncheon that I was able to emcee yesterday. It as for the USO, the United Services Organization. It was their 43rd Annual Women of the Year Luncheon. It was honoring women in the Armed Forces as well as those who support them through the USO. I had the honor of emceeing.

So a quick look at this picture. A lot of legs in that show.

COSTLELO: I was going to say that. It looks like the Rockettes.

CHETRY: The 2009 Liberty Bells, there they are. They are sort of like the military USO version of the Rockettes.

And also honored Major General Patricia Horoho is in the picture with me, as well as Stephanie George who is the executive vice president of (INAUDIBLE), donating a lot of time to the USO. Both of them were honored yesterday at luncheon.

If we could just flip through real quick. I think there's one other picture of -- well, that's just my speech. OK. Next.

COSTELLO: We like that picture.

CHETRY: No, I wanted to chose the one with all the Liberty Bells, because they...

COSTELLO: You look like you were saying something really earnest like...

CHETRY: Thank you. I was. There they go. How about it?

COSTELLO: Oh that's awesome.

(CROSSTALK)

COSTELLO: They deserve it. Congratulations.

CHETRY: The one guy in the middle, he was great, too.

COSTELLO: Yes. The token man.

CHETRY: Well, thanks so much for joining us on this AMERICAN MORNING. It was great having with you us. You're back in D.C. tomorrow.

COSTELLO: I'm back in D.C. but still with AMERICAN MORNING so that's a good thing.

CHETRY: Yes, it sure is.

COSTELLO: Yes. Right.

CHETRY: We're going to see your pitching skills, of course, put you to the test in the summer.

COSTELLO: I'll challenge you.

CHETRY: You'll win. COSTELLO: Go to one of those things where you throw the ball and see how fast it goes.

CHETRY: You'll win. Just now that now.

COSTELLO: OK. Let's head to Atlanta. Here's Fredricka Whitfield.