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American Morning

U.S. Soldier Captured in Afghanistan; DEA Joins in Michael Jackson Case; New Evidence FAA Ignored Safety Concerns; Discharged Serviceman to Continue Appeals; Diana Ross's Big Influence; Angry Mob Faces off with Honduran Forces; Former Insider Criticizes Health Insurance Industry

Aired July 02, 2009 - 07:00   ET

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


KIRAN CHETRY, CNN ANCHOR: And we're coming up on the top of the hour now. It's 7:00 here in New York on this Thursday, July 2nd. I'm Kiran Chetry.

JOHN ROBERTS, CNN ANCHOR: Good morning to you. I'm John Roberts. And here's what's on the agenda, the big stories that we're breaking down for you in the next 15 minutes.

We start with breaking news out of Afghanistan today. A U.S. soldier has been captured by militants. This as thousands of Marines launch the first major military operation of the Obama administration.

You are looking here at the very first pictures from the mission. We're live at the Pentagon with both breaking stories.

CHETRY: We have some new details in the Michael Jackson investigation. The DEA is now on the case looking into possible prescriptions and who prescribed them to Michael Jackson.

We also now know that the King of Pop may end up filling just one more arena before he is finally laid to rest. A big public memorial of sorts possibly in the works, what it means, and where it may be. We're live from Neverland in just moments.

And also Michael Jackson's will surfaces. It answers some questions, also raises a lot more, though. And it also pulls his close friend, Diana Ross, into the fray. Who gets the kids and what creditors may be coming after the estate, ahead.

ROBERTS: And we start this morning with the breaking news. The Pentagon confirming that militants in Afghanistan have captured an American soldier. Let's get straight to our Barbara Starr who's at the Pentagon with the very latest.

What are you finding out, Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: John, the latest information is this is an enlisted soldier taken in eastern Afghanistan according to the U.S. military. He was last seen at his duty post on Tuesday and was not seen after that. This morning the U.S. military put out a statement saying it is now believed he has been captured by militants. This is so sensitive, John. We will step very carefully through it. His family has been notified of the circumstances. Very little public information other than the military is saying at this hour operations are under way to try and get him back.

They feel very positive that he is in the hands of militants. There is a good deal of discussion that some photos and videos could emerge in the coming hours. That may be one of the reasons we are told the military is so convinced of what has happened to this man. They are continuing to search for him. No word yet. We'll keep watching it.

ROBERTS: And, Barbara, all of this takes place at the same time, as we mentioned, as this new operation is under way in Helmand province. Let's just bring up a graphic so we can orient people as to where this is all taking place.

It's in Helmand province. As we said, it's called Operation Khanjar, which is "Strike of the Sword." You could see the province there in the southwestern part of Afghanistan, as we zoom in here. Really the operations are all taking place in the Helmand River Valley, which is the fertile area of this province. The rest of it is almost all desert.

And this happens to be the opium-growing capital of the world. Forty-two percent of the world's opium is in there. And it's a Taliban stronghold.

Barbara, this is the promised defensive during the summertime that the Obama administration under General David Petraeus's leadership were undertaking. Give us some details of what's going on there.

STARR: Well, this is the unfolding apparently of the new counterinsurgency strategy to move into these areas and push the Taliban out. But, John, as you just pointed out, this is the opium area. This is the Taliban stronghold. They're not going to give up easily on this.

This is where they get their money from to finance their operations. So, expect to see a good deal of fighting. Expect to see the Taliban do what they always do, both fight and to a certain extent, melt away into the darkness to wait it all out.

But this is the strategy that the Obama administration is so convinced is going to work. Move in, push them out of the towns and villages, get them out of their strongholds, and give them no place to come back to. Because while the fighting is going on, U.S. troops will also be offering aid, reconstruction and assistance to the people in this area. And the hope is all of that put together will make any appeal for the Taliban virtually vanish in the area.

We have seen this happen many times over the years. We will see if it all works -- John.

ROBERTS: So, this is applying the Iraqi strategy of clear, hold and build here in Afghanistan?

STARR: Well, it is, indeed. And that is, in fact, one of the critical differences with previous operations.

ROBERTS: Right.

STARR: This time they believe they have enough troops to hold the territory that they will be able to stay there. That's something that has not happened in the past -- John.

ROBERTS: Barbara Starr at the Pentagon for us this morning. Barbara, thanks so much for the update.

CHETRY: And we have some new developments this morning into Michael Jackson's death as well. The nation's top drug cops now joining the investigation.

And CNN is confirming late last night the Drug Enforcement Administration is now working alongside LAPD. DEA agents looking specifically at the role that prescription drugs could have played in Michael's death.

Meanwhile, fans around the world are wondering when they'll be able to say their final goodbyes to Michael Jackson. This morning, just a week after his death, there are plans for a public funeral or memorial service of some sort, but exactly when and where still remain unclear.

CNN's Kara Finnstrom is live outside of Jackson's Neverland Ranch. And let's start with the DEA. What do we know now about why they are taking on a role in this case now?

KARA FINNSTROM, CNN CORRESPONDENT: Well, Kiran, two separate law-enforcement sources are now telling CNN that the DEA has gotten involved in the probe. This is an area that they'd look into whether there could have been some abuse of prescription drugs here.

You know, what they tell us is that agents will be looking into several physicians that have been linked to Jackson, at their practices and at their supply of medicines. This has been an issue whether drugs were involved ever since Jackson died back on June 25th.

At this point, the coroner has not established a cause of death. He's waiting on those toxicology results. But you'll remember early on, Los Angeles police detectives impounded the car of Jackson's personal physician, a cardiologist, saying they wanted to search it for evidence and possibly prescription drugs. That car has since been returned to the doctor, and there's no word yet on whether anything was actually found.

We've also heard from numerous people who have said that Jackson may have had trouble with prescription drugs. Most recently we've been hearing from nutritionist Cherilyn Lee, who says that Jackson was having severe bouts with insomnia and wanted her to give him a very powerful sedative. And so, you know, all of these things coming to light and the DEA now involved. CHETRY: Let's talk about this funeral or memorial service, a public one perhaps in the works. We heard a lot of differing things about when this would happen and possibly where yesterday. What are we hearing this morning?

FINNSTROM: Well, the official word from a family spokesperson is, first of all, that we will not be seeing those private and public viewings of the body that, you know, have been reported here at Neverland. They do say they've got a public memorial in the works, but have not yet released any details about when or where.

Several media outlets are betting about that possibly it could be at the Staples Center. That's, you know, the home of the L.A. Lakers and the L.A. Clippers. It's huge. Or, possibly at the L.A. Coliseum, which is a huge football arena that could hold, you know, upwards of 100,000 people.

What both of these have, you know, to offer as an advantage is that it would be a better situation as far as huge crowds and traffic. But, you know, Kiran, as we were talking about earlier, you're still going to have lots of people coming, lots of issues to contend with wherever you hold this.

CHETRY: Yes, absolutely. All right. And then also, events that are already scheduled to take place at some of these venues, like, I believe, the circus, right? The circus is supposed to be in town at the Staples Center, at least. So I guess they have to try to figure out a way to make that happen, even though there are other plans there.

All right. Well, Kara Finnstrom for us this morning following the latest, thanks.

And meanwhile, as we were talking about, the DEA now getting involved in the Michael Jackson investigation. Why, what may they be looking for and also who may they be trying to talk to about the situation? We're going to be joined in a few moments by DEA special agent Bob Stutman. He joins us in five minutes with his take.

ROBERTS: Also this morning, Michael Jackson is continuing to create a lot of buzz, especially the section about who he wanted to care -- or Michael Jackson's will, rather, is creating a lot of buzz, especially the section about who he wanted to take care of his kids.

In the 2002 document that was filed in court yesterday, Jackson names his mother, Katherine, as the choice for guardian. His second choice, longtime friend and famed entertainer Diana Ross. Also in the will, Jackson intentionally omits Debbie Rowe, his ex-wife and mother of his two oldest children. And he makes no mention of his father, Joe.

Estimates of his fortune are around half a billion dollars. That's much more than was reported earlier this week. Of course, that estimate is from 2002, when the will was drafted. So, will get control of Jackson's money?

Earlier on AMERICAN MORNING, I asked attorney Paul Callan for his take.

(BEGIN VIDEO CLIP)

PAUL CALLAN, NEW YORK CIVIL TRIAL ATTORNEY: What they do is they pore over the contents of the will into the Michael Jackson family trust. And there, the distribution remains absolutely secret.

This was a very clever way to set it up. It was Michael Jackson trying to grab himself a little bit of privacy in his death. Ironic, I think, because he was such a highly publicized entertainer.

Now, a trust remains strictly confidential. So who gets the money through the trust, who manages the trust, all of this may never be revealed to the public unless, of course, it's leaked to the press.

(END VIDEO CLIP)

ROBERTS: Jackson's estate should also see a boost from skyrocketing album sales. Three of Jackson's albums each sold more than 100,000 copies in the past week.

CHETRY: You know, we've seen that grow. I mean, the top ten, nine out of the top ten were either Michael Jackson's albums himself or one of the Jackson Five.

ROBERTS: It's back there at the top of the billboard charts again.

CHETRY: Yes. Absolutely.

All right. Well, breaking now, Washington waking up to news that North Korea test-fired two more missiles overnight. South Korea's defense ministry said they were ground to ship missiles.

North Korea had earlier set up a no-sail zone in waters off the east coast through July 10th, a sign that this could be coming. North Korea is already facing tough new U.N. sanctions after a nuclear test last month as well as a series of missile launches.

Well, there are more calls this morning for South Carolina Governor Mark Sanford to resign. They're coming from his own state and his own party.

Republican Congressman Gresham Barrett says the people have lost confidence in the governor after he revealed new details about his extramarital affair this weekend in an interview with "The Associated Press." Sanford holding tight, though. He says he will not step down. Barrett, by the way, is running for governor next year.

Well, good news if you're hitting the road on the Fourth of July weekend. Gas prices are still on the way down. AAA reporting the national average for a gallon of regular is now $2.62.

Eleven minutes past the hour.

(COMMERCIAL BREAK) CHETRY: Well now that the nation's top drug cops have been brought in to investigate the death of Michael Jackson, it's raising more questions about who prescribed what drugs for the troubled pop star. It's not unusual, not unusual for the DEA to get involved when there is a question perhaps of overdose. But we want to find out more about what that agency's role in this case may be.

Bob Stutman is a retired special agent with the investigation's unit of the DEA, and he joins us this morning from Providence.

Good to see you this morning, Bob.

BOB STUTMAN, RETIRED SPECIAL AGENT, DEA: Good morning, Kiran. How are you?

CHETRY: Great. And I want to ask you about why the DEA would become involved in the Jackson case.

STUTMAN: Again, I know nothing personally about the Jackson case, but it would not be unusual for the police department where there is a high profile case and a question of an overdose to bring in DEA. DEA has access to databases generally that local police would not have.

LAPD, of course, is one of the -- couple of the finest in the United States. They know how to do the investigation. But when you tie that together with the database that DEA has, it usually gets them where they want to go much quicker. And where they want to go is, A, what drugs were involved. B, what doctors may have been prescribing.

And, again, not speaking specifically to the Jackson case, it is almost always doctors. So we're going to find out who the doctors were and DEA can very often trace that from the manufacturer through the wholesaler. They will interview the pharmacies. They'll interview any physicians that may have been involved, anybody that may have seen prescriptions.

CHETRY: So they really are going to be able to get -- Bob, they are really going to get, be able to get to the bottom of this, right? I mean, when you're talking about narcotics, there's a DEA number on each prescription, right? So, I mean, if a person is able to get these prescriptions but one hang-up could be that they might not all be in the name of Michael Jackson. Theoretically speaking, they could be under other peoples' names, correct?

STUTMAN: That's correct. They probably are, in many cases, under other names.

I don't see Michael Jackson shopping around at pharmacies trying to get drugs. So, he probably had other people doing it. The other problem, of course, some of the drugs may not be controlled. Propofol, which is allegedly one of the drugs that was found at the house, is not a scheduled drug, although it's a killer drug used for deep sedation, surgery, outpatient procedures, et cetera.

So, these drugs are real difficult to play with. And I think the Jackson case, personally feel the Jackson case is an example of what is going on in this country. We are becoming a prescription drug abuse country.

Prescription drugs are more widely abused than any drug except marijuana, and in some cases more abused than marijuana in the United States. About as many people die from prescription drug overdose in the United States as gunshot wound, second only to car accidents in the United States. And most people don't realize that the tolerance with prescription drugs, you play with them, it's very, very little. You make one little mistake, you're dead. And, unfortunately, people don't realize that problem yet.

CHETRY: And when we talk about these high-profile celebrities who died from mixing prescription drugs, take Heath Ledger, for example, who also, you know, had complained, according to many of his friends of having this insomnia problem and just wanting to get some relief from that. And tragically he died of what was eventually determined acute intoxication, according to the New York medical examiner.

But they say he was taking some six painkillers, sleep aids and anti-anxiety drugs. And in cases like this, how do you figure out who would -- I mean, no one doctor would do that, right? Would prescribe that many types of medications? So how do you start that forensic legwork to try to figure it out, in a case like that, in a case possibly like Jackson's about whether or not there was wrongdoing?

STUTMAN: Well, you do it two ways. One is the technical way, which is start with the databases, see what drugs went to what pharmacies, what pharmacies wrote prescriptions to what physicians. You would interview dozens if not hundreds of pharmacists to see where the prescriptions were being filled.

There was allegedly one pharmacy where Jackson's family had filled somewhere between $50,000 and $100,000 worth of medicine in one year. One would hope that pharmacist would take a second look at that. So it's really a combination of technological and just good old-fashioned legwork that the LAPD and the DEA investigators would do.

CHETRY: And then quickly, also, you see these ads all the time on the Internet to be able to buy these types of prescription drugs, some of them even narcotics. Are those regulated? Is there any way the DEA has control over that or oftentimes are these just fake drugs?

STUTMAN: Well, there's two things. First of all, very often they're just fake drugs. DEA has very little control over those Internet ads. We're also one of only two countries in the world that allow direct advertising by the pharmaceutical manufacturer to the ultimate user. So we have become a very prescription drug-oriented society.

I work with about 30 schools a year, high schools around the country, and all kids talk about now is pharming, which is prescription drugs. They don't talk about grass, they don't talk about coke. They talk about pharmaceuticals. And the killer is, of course, they believe because doctors are prescribing them, they're safe.

CHETRY: Right. Scary stuff.

Bob Stutman, retired special agent with the DEA, thanks so much for being with us this morning.

STUTMAN: Thank you, Kiran.

CHETRY: Eighteen minutes past the hour.

(COMMERCIAL BREAK)

ROBERTS: So, we asked for that yesterday. All it took was 24 hours and there it is.

CHETRY: You shall receive. There you go. What's it called?

ROBERTS: That's called "Oh Yeah" and Yellow.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yellow.

ROBERTS: A couple of crazy guys from Denmark, I think, if my memory serves correctly? I might be wrong.

ROMANS: John knows everything about music.

ROBERTS: You know...

CHETRY: You know everything about finances. That's why you're "Minding our Business."

ROBERTS: I've forgotten so much about it. And we're talking about refinancing.

ROMANS: Refinancing, that's right. You know, 20 million people are underwater on their home loan. That means a lot of you out there watching this, you've watched your neighborhood home values go down, and you know that you owe more on the mortgage than the house is even worth.

The Obama administration in its Making Home Affordable program had tried to ramp up some of the efforts begun under the Bush administration to make refinancing and loan modifications available to more Americans. So far, it's been a difficult slog, and now the Treasury Department trying to broaden its refinancing to make more people available to refinance their homes.

The problem was so many of you were so underwater that you didn't qualify. So, here's what they're going to try to do.

Let's say your home is worth $200,000. Before, you could only refinance a mortgage up to $210,000. So you had to be underwater $10,000 on the loan. Now, they're going to say, look, if your mortgage is $250,000 but your home is only worth 200,000, you can qualify. Now, of course, the banks have to fall in line and have to approve you. Yesterday, I was on Ali Velshi's radio show, and I got a lot of calls from people who said I thought I was going to qualify, called the bank, did the paperwork, and then they came back to me and said sorry, you can't refinance, or sorry you can't modify your loan.

So, a lot of people are really caught here because even at the beginning of the process, they start and then home prices keep falling. It just shows you how difficult the housing market has been.

CHETRY: And as we look at the unemployment numbers, it seems it's just going to get harder. I mean, people who are out of a job are having trouble paying their mortgage.

ROMANS: That's right. And sometimes people start this process. They have a job at the beginning and they don't in the end. If you have zero income, it's impossible to try to figure out how to modify a loan to 31 percent of your income if you have no income. But this is about refinancing. They're trying to expand this.

ROBERTS: All right. Christine Romans "Minding Your Business" this morning.

ROMANS: Sure.

CHETRY: We have a numeral?

ROBERTS: Oh, we got a numeral, right?

ROMANS: We do.

ROBERTS: We do?

ROMANS: We do. OK, the number is 20,000. And this has to do with homeowners and actually getting help from the government on fixing their loans.

CHETRY: How many have -- up to the time they introduced the program qualified for one of these?

ROMANS: It's the number of loans actually refinanced under this program. A program that the administration promised would help four million to five million people.

CHETRY: That's what I meant to say. I didn't say it probably.

ROMANS: You got it. Twenty thousand out of four million. It shows you how -- just how few people have been helped by these efforts so far. So, there's a reason why people are frustrated out there, and I hear it from you all the time that people are very frustrated. And those numbers say why. They're going to try to expand it, to take a look at the numbers.

Makinghomeaffordable.org is the Web site. If you want to see if you do qualify, of course, you have to talk to your lender.

ROBERTS: They do.

ROMANS: OK.

ROBERTS: By the way, Yellow, Switzerland.

ROMANS: Switzerland.

ROBERTS: The home of watches, chocolates and Red Bull.

ROMANS: That's right.

CHETRY: I will stay neutral on that.

Christine Romans "Minding Your Business" for us.

ROBERTS: So we had Lieutenant Dan Choi on Monday. He was about to go before an Army board and plead his case for why he should stay in the military even though he violated the "Don't Ask, Don't Tell" policy.

Well, the board didn't buy his presentation. They recommended that he be discharged. But is the fight over? Dan joins us coming up in a few minutes to talk more about that. Stay with us.

It's 25 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: It's a nice, pretty day in Washington, D.C. this morning. It's 27 minutes past the hour right now. It's partly cloudy, 68 degrees. A little bit later, it's going up to 84.

Well now a report that you're only going to see on CNN. We've uncovered evidence that the Federal Aviation Administration, an agency that's supposed to keep you safe while you fly, has ignored more than two dozen safety concerns. Those problems being raised by whistle- blowers within the agency.

Allan Chernoff joins us now live with his exclusive report this morning. So, what are we talking about here when we talk about concerns?

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Major safety issues, aircraft maintenance, runways, air traffic. I mean, these are very important issues.

And we did tell just a few weeks ago about an FAA inspector, Christopher Monteleon. He said that he's gotten nowhere when flagging safety violations. Other inspectors have said exactly the same to us.

Now the Office of Special Counsel is telling us that many of these inspectors are pointing to legitimate problems.

(BEGIN VIDEOTAPE)

CHERNOFF (voice-over): FAA inspector Christopher Monteleon warned of safety problems at Colgan Air for several years before a Colgan plane crashed near Buffalo in February killing 50 people.

CHRISTOPHER MONTELEON, SUSPENDED FAA SAFETY INSPECTOR: My supervisor called me into his office and said, stop your investigation. He said that this violation, these violations never occurred.

CHERNOFF: But Monteleon continued raising safety concerns about the airline. Eventually he was demoted, then put on leave of absence.

MONTELEON: I've had my aviation safety inspector credentials taken from me. It's just been humiliating.

CHERNOFF: Monteleon filed a complaint with the federal Office of Special Counsel, which investigates allegations of reprisal against whistle-blowers. CNN has learned the OSC has found merit in Monteleon's case against the FAA. He's not alone.

The Office of Special Counsel tells CNN it has made a positive determination that the FAA improperly responded to 27 current cases of FAA employee whistle-blowers warning of safety violations.

TOM DEVINE, GOVERNMENT ACCOUNTABILITY PROJECT: It means that FAA is a very sick agency. There has never been an agency that's had that large of a surge of whistle-blowers whose concerns were vindicated.

CHERNOFF: The Department of Transportation told CNN, "We acknowledge it's a large number of cases. We take all of them seriously."

But the Office of Special Counsel finds the FAA repeatedly retaliates against employees who flag safety problems, often deferring to the airlines they regulate. The former inspector general of the transportation department in the 1990s, now an attorney for families of accident victims, says the problems she saw seemed to have gotten worse.

MARY SCHIAVO, FORMER INSPECTOR GENERAL, U.S. DEPARTMENT OF TRANSPORTATION: That's shocking. And it's really unconscionable for a government agency that supposed to be about safety, not about witch hunts for those who find safety lacking.

CHERNOFF: What's going on at the FAA? Critics say it's the culture. Former FAA administrator Marion Blakey in 2003 established a Customer Service Initiative that defined airlines as customers, not the flying public. The current transportation department inspector general found FAA's definition of its customer has had a pervasively negative impact on its oversight program.

While there's no evidence of illegal dealings, the FAA has had an active revolving door. Agency managers regularly going on to work in the aviation industry while industry executives take top spots at FAA.

Former FAA administrator Blakey is now president and CEO of the Aerospace Industries Association. Former FAA chief operating officer Russell Chu moved on to become president of JetBlue Airways. FAA's chief operating officer of air traffic, Hank Witowski, is a former United Airlines vice president. Linda Daschle, wife of the former senate Democratic leader, was FAA's acting administrator, and then became a lobbyist representing the airline industry.

SCHIAVO: There's a very cozy relationship between the lobbyists for the industry and the Department of Transportation and the FAA.

CHERNOFF: In spite of past problems, the new transportation secretary and FAA chief say the agency will change. Whistle-blowers will now get an open ear.

RAY LAHOOD, U.S. SECRETARY OF TRANSPORTATION: We will pay attention to any kind of complaint or accusation or any kind of concern that is expressed by an employee of the FAA. It's a new day at the FAA. And it's a new day at DOT.

(END VIDEOTAPE)

CHERNOFF: The Office of Special Counsel has referred all 27 cases to the transportation secretary, who is investigating and must tell the special counsel what steps will be taken to fix these safety problems - Kiran.

CHETRY: You really highlight some scary stuff in there. What about Congress? They are in charge of overseeing the FAA. Are they taking this up?

CHERNOFF: Yes, absolutely. And in fact, there is a reauthorization bill that the House has already approved and in that bill the House says FAA has to establish an independent office to investigate whistle-blower complaints. The FAA has actually resisted that. They investigate those complaints...

CHETRY: Right.

CHERNOFF: ... but there is not an independent office. They also -- the House bill also would have the FAA change that customer service initiative and not to mention airlines as the customer.

CHETRY: Right.

CHERNOFF: The Senate will be working on its own bill after July 4th.

CHETRY: Because after all, it's really the safety of the flying public.

CHERNOFF: It's all of us.

CHETRY: All right. It's very interesting stuff. If you would like to read more about Allan's reporting, go to cnn.com/amfix. We have a blog about it, and you can also weigh in with your comments. Allan, thanks.

CHERNOFF: Thank you.

ROBERTS: Thirty-three minuets now after the hour and checking our top stories this morning. First, breaking news. North Korea test fired what appeared to be a two short-range missiles off its east coast over night. this according to South Korea's news agency. The U.S. military says the launch was expected. The North Korean government had issued a warning for boats to avoid the area.

Also breaking this morning, word that a U.S. soldier has been captured by militants in Afghanistan. And that the Taliban has claimed responsibility. The military says U.S. forces are exhausting all resources to find the soldier who has missing since Tuesday. Three Afghan soldiers were also captured at the same time.

Did the cover-up Bernard Madoff's Ponzi scheme extend inside the SEC? The "Washington Post" says an investigator at the Securities and Exchange Commission warned supervisors about trading irregularities back in 2004. One of those supervisors later married Madoff's niece and is now under investigation.

More now on a developing story this morning, U.S. Army First Lieutenant Dan Choi received a notice of discharge from the Army because he broke the military's don't ask, don't tell policy by not only announcing that he's gay but doing so on television. He appealed the decision, but a four-officer panel just recommended that his appeal be denied. At the same time though, Defense Secretary Robert Gates says he wants to make don't ask, don't tell more flexible.

Where does that leave Lieutenant Choi, here with us now on AMERICAN MORNING. Good morning to you, Dan. Good to see you.

LT. DAN CHOI, BEING DISCHARGED FOR BEING GAY: Good morning. Good to see you.

ROBERTS: What was your reaction to the board's decision on Tuesday? Or the board's recommendation?

CHOI: As much as you prepare yourself for that inevitability to say that you are fired, it's not just the same as when you actually hear those words. It's a setback. It hurts. I gave my all. I stood in front of the board and I explained, I should stay. If you look at reality, there is no evidence of the negative effects of good order and discipline or any of that, morale or any of those arguments, just absolutely zero evidence. And I have capabilities that...

ROBERTS: You have a special talent. You are fluent in Arabic. You speak it very, very well.

CHOI: I went up in front of the board, and I recited the most famous Iraqi poem.

(SPEAKING FOREIGN LANGUAGE)

ROBERTS: Which translated...

CHOI: Well, it's the most famous poet, Mutanabi, that says, "The night and the horses and the sand, they know me. The sword and the spear, the pen and the paper, they know me. I'm the one that makes the death to hear my poetry. I'm the one that makes the blind to read my prose." And of course, it asks for a translation. Because nobody in that room had the capabilities to understand.

But all around the Middle East, that is the most famous poem. It just has that kind of a power that, I think, Americans don't understand. When you are trying to reach out and build bridges to other countries in the Middle East, particularly in Iraq, that means so much, particularly to the counter insurgency.

ROBERTS: So, your talents could have been put to good use in Iraq. You are also learning Farsi, so you could have done some work in Afghanistan as well in the future.

CHOI: I was about halfway through a semester of beginning Farsi. And of course, they use the same letters and some of the same words there, but I got the discharge notice, and so I had to stop courses. I would love to continue using the skills for the military. In addition, I'm a West Point graduate and Iraq combat veteran and the people in the unit, they support me.

ROBERTS: It's not over yet, because the recommendation from the board still has to be approved by the commander of the 1st Army...

CHOI: That's right.

ROBERTS: ... and also has to be approved by the chief of the National Guard Bureau. Do you plan on appealing to them?

CHOI: I plan on appealing to everybody including the secretary of the Army, the secretary of the defense and the Supreme Court. And my message to all my soldiers, even if you get set back, even if you get slapped in the face, or if you get knocked on the ground, it is not your job to give up. You do not have that right. You do not have the privilege of just quitting.

ROBERTS: Now, we said at the same time as your decision, the recommendation came down. Secretary of Defense Robert Gates was saying well we may modify the application of don't ask, don't tell to some degree. Maybe a little more flexible about it in cases where people have been outed as a result of blackmail or maybe a jilted lover who has gone public with it. Maybe they can stay in the military. When you look at these modifications, do you have hope that in the next year or so, that you may be appealing to, as you said, you know, the secretary of the army, and all those other folks, that they might relax it a little bit more or they may just say if we're relaxing it for some people, maybe we should relax it for all.

CHOI: It's encouraging, John, but it misses the point. Look at reality on the ground, every soldier in the military knows there's a gay guy or a lesbian girl in their company and their unit. And there's no problem. Our leaders need to wake up and realize that. You know, they are selfless, patriotic. We are at a time of war right now.

You know, an Arabic saying that somebody had the (INAUDIBLE), the patience wears down mountains. But we don't have that kind of time now. And our leaders need to wake up and see you have soldiers who are capable, that are willing, that are trained, and you're kicking them out.

ROBERTS: Right. Well, Dan, it's good to see you this morning. And I would say (INAUDIBLE). Thanks for coming in this morning.

CHOI: (SPEAKING FOREIGN LANGUAGE)

ROBERTS: Appreciate it.

Thirty-eight and a half minutes now after the hour.

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CHETRY: Well, new drama this morning surrounding Michael Jackson's will. He named his mother the guardian of his children, and that was really no big surprise but there is a lot of buzz over the pop star's second choice, the words I nominate Diana Ross, may have come as a shock to some. But Mary Snow joins us now with more on why we shouldn't be surprise. We know they had a close relationship, but close enough that he would want her to take over guardianship of his children?

MARY SNOW, CNN CORRESPONDENT: Well, she is really described as the woman he would turn to if his mother wasn't there. And she had a big influence on Michael Jackson both on stage and off. They had known each other for roughly 40 years, and Diana Ross was seen as a role model for Michael Jackson.

(BEGIN VIDEOTAPE)

SNOW (voice-over): After Michael Jackson died, Diana Ross said in a statement she couldn't stop crying. That she was praying for Jackson's children and his family. Jackson's will shows how highly he regarded her. The will says if Jackson's mother died or is unable to take care of his three children that Ross should be named guardian.

MIKE WALTERS, TMZ.COM: It is fitting, if you think about that, and the people that he trusted, Michael didn't have very many people around him for a long time, including some of his family members that he trusted.

SNOW: Jackson knew Ross for most of his life. She lent her star power to the young Jackson family. Their first album was called "Diana Ross presents the Jackson Five." Ian Drew of "US Weekly" says Ross who has five children of her own taught the Jacksons the ropes in show businesses but also provided emotional support.

IAN DREW, SENIOR EDITOR, "US WEEKLY": A lot of times when they visited Los Angeles before they had a house there, they would stay at Diana's home. He would often seek refuge there when things were very bad at home. She really was a surrogate mother to him almost.

SNOW: Michael Jackson got older, he remained close to Ross. The two of them seen here in "The Wiz" in the late '70s, performed together at times. And former president of CBS records, Walter Yetnikoff, recalls how Jackson turned to Ross before releasing his blockbuster "Thriller."

WALTER YETNIKOFF, FMR. PRESIDENT, CBS RECORDS: Two people other than Michael who saw "Thriller" for the first time, me and Diana Ross to preview, you know, "Thriller."

(END VIDEOTAPE)

SNOW: And that gives you a glimpse of the kind of influence Diana Ross had. Some music industry watchers say it's unclear how close the performers were in the last several years since the will was written in 2002. And Diana Ross has not commented publicly on the fact that she has been mentioned in this will.

CHETRY: Maybe that says a lot about their relationship because so many people are out there talking and you know, maybe she wanted a little bit of that private.

SNOW: Yes. She only released one statement since his death, and obviously she was very upset.

CHETRY: Yes. Mary Snow looking into that connection for us. Thanks.

SNOW: Sure.

CHETRY: Forty-four minutes past the hour.

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ROBERTS: Forty-seven minutes after the hour. Let's fast-forward now to stories that will be making news later on today.

California could begin paying some of its bills with IOUs instead of cash starting as early as today. Governor Schwarzenegger declared a fiscal emergency yesterday after lawmakers were unable to fix the state's $26 billion budget shortfall and ordered state workers to take a third unpaid day off each month.

The Labor Department releases its monthly jobs report at 8:30 this morning and the numbers for June are expected to be slightly higher than those in May. President Obama expected to comment on the economy in this latest jobs report, in the Rose Garden. That's at 2:20 this afternoon. Of course, we'll be covering that for you on CNN.

ROBERTS: And today at 1:00 p.m. Eastern, New York Mayor Michael Bloomberg will oversee the weigh-in ceremony for the world famous Nathan's hot dog eating contest. Rivals Joey Chestnut and Takeru Kobayashi are set to face off in the gastronomic showdown this Saturday, the fourth of July. Chestnut edged out Kobayashi in overtime. It was the first overtime since 1980. It happened last year after they each scarfed down 59 dogs in 10 minutes. Nothing though compared to what our Rob Marciano could eat if he really put his mind into it. Good morning, Rob. (WEATHER REPORT)

CHETRY: It's one we'd like to forget. Let's move into July and see if things get better.

Hey, I wonder if you do this, Rob, but if you are afraid of heights, you probably would not be lining up for this one. This is called the ledge, and it's a balcony on the top floor, the viewing deck of the Sears Tower made completely of glass. Literally you are standing over the city of Chicago it's 103 stories straight down. There you go. Take a nap on it. Oh, got to be kidding.

The glass is only an inch and a half thick, but it can support up to five tons, we're told. I hope they don't try that out. And this story, of course, reminded us from a scene at "Ferris Bueller's Day Off." And we've been talking about that movie lately. The officials at the Sears Tower said that it was their inspiration to build the ledge. Do you remember when Ferris and his girlfriend Cameron sat there pushed their heads against the glass to look down? Well, those hundreds and hundreds of forehead prints on the glass that followed. Maybe they figured, hey, let's build a ledge. Let them get out there.

ROBERTS: Put them right out there. Yes.

CHETRY: Fifty minutes after the hour.

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CHETRY: All right. Well, a developing story this morning, it's the power struggle that is happening right now in Honduras. The country's ousted president has delayed his return home until Saturday. Despite international pressure, the newly installed government says that they will arrest President Manuel Zelaya when he arrives. Protests both for and against him continue and the military which staged the coup last weekend is starting to crackdown.

CNN's Karl Penhaul takes a closer look at the tension dividing this country.

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KARL PENHAUL, CNN CORRESPONDENT (voice-over): An angry mob faces off with Honduran security forces. Soldiers appear with their riot shields. Several thousand supporters of ousted President Manuel Zelaya cursed them for staging a military coup.

SATURNINO SANCHEZ, TEACHERS' LEADER (through translator): We're going to risk our lives and bloodshed to defend the Constitution.

PENHAUL: This teachers' leader says. I asked an army officer why he and his men are backing the coup that toppled President Zelaya Sunday.

He tells me they're only here to protect the civilian population. In fact, these soldiers and riot police are guarding the Congress building. This is where lawmakers voted to back the power grabbed and swear in interim president Roberto Micheletti, a move that sparked international diplomatic condemnation. Honduras' military gets major support from the United States. Its economy is also heavily dependent on selling bananas, coffee, and textiles to the U.S.

The White House has refused to recognize the new government, but protestors clearly want the United States to take tougher measures. Teachers, public sector workers, and farm workers joined in the national strike. Women's groups were also out in force.

UNIDENTIFIED FEMALE (through translator): We have to take part in all of the decisions of this country because until now, we have not had a voice.

PENHAUL: She says. The trigger for the coup was Zelaya's plan to hold the referendum to change the law so he could seek another four-year presidency. These protestors vow to continue their struggle and collecting cash to passing from the countryside.

Out of the crowd, protesters dragged a plainclothed policeman armed with a loaded pistol. He told me he was a security agent but said he had come to protect, not to harm the demonstrators. Zelaya's supporters disarmed him and freed him.

(on camera): The protest leaders are intervening and have asked the riot police today to withdraw and revert the possibility of a clash.

(voice-over): More demonstrations are planned and the population is polarized. There's little sign of the coup leaders or the toppled president's supporters are ready to back down. Karl Penhaul, CNN, Tegucigalpa.

(END VIDEOTAPE)

ROBERTS: And it could get worse too, Zelaya is saying that he still wants to go back, maybe over the weekend.

CHETRY: Right.

ROBERTS: And they're vowing to arrest him and throw him in jail if he does.

We got breaking news this morning. Our Barbara Starr reporting from the Pentagon that an American soldier in Afghanistan has been captured by the Taliban. She's watching that story very closely for us. And she'll have more coming up in just a couple of minutes. Stay with us.

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ROBERTS: Well, Democrats on the Hill are passing around new details on a revised plan for health care reform this morning. The president took his version of the plan to an online town hall meeting, taking aim at so-called scare tactics from his opponents. Critics say it's the first step towards government-run health care. Our Jim Acosta sat down with one industry insider from the health insurance industry. Jim, why did this man decide to step forward?

JIM ACOSTA, CNN CORRESPONDENT: Well, John, he saw this battle over health care is escalating in Washington and he has some opinions on the subject. Groups on both sides are flooding the airwaves with ads on this issue and now a health insurance insider Wendell Potter has stepped forward to warn the public about the industry's practices and some of those ads shaping the debate.

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ACOSTA (voice-over): For 15 years, Wendell Potter worked for the health insurance giant, Cigna, most recently as the company's chief spokesman. These days he's telling a different story about the industry.

WENDELL POTTER, FORMER VICE PRESIDENT OF COMMUNICATIONS, CIGNA: I know from personal experience that members of Congress and the public have good reason to question the honesty and trustworthiness of insurance companies.

ACOSTA: Potter told a Senate hearing on health care the industry is only out to please investors.

SEN. JAY ROCKEFELLER (D), WEST VIRGINIA: I was going to say that you were better than Russell Crowe on "The Insider."

ACOSTA: He told CNN how his former company would drive small businesses with expensive claims to dump their Cigna policies, a practice Potter says the industry calls purging.

POTTER: When that business comes up for renewal, the underwriters will jack the rates up so much that the small businesses have no alternative but to drop insurance.

ACOSTA (on camera): Or walks away.

POTTER: The employer walks away.

ACOSTA (voice-over): In an e-mail to CNN, a Cigna spokesman says, "We do not offer that. We will offer rates that are reflective of the competitive group health insurance market. We always encourage our clients to compare our proposed rates to those available from other carriers."

Potter finally decided to leave Cigna after visiting this charity event at a Virginia fairground.

POTTER: It was almost like an electrical jolt, almost like being hit by lightning. It really was.

ACOSTA: Where he snapped these pictures of doctors offering free health care to the uninsured. POTTER: The volunteer doctors were seeing patients in barns, and treating people and animals.

ACOSTA (on camera): So, this changed it for you?

POTTER: It changed it for me. Just seeing that.

ACOSTA: Now a supporter of health care reform, Potter is taking aim at those TV ads warning of a government-run system.

ANNOUNCER: Now Washington wants to bring Canadian-style health care to the U.S.

POTTER: Sometimes you'll see misleading information, sometimes outright lies like that is.

ACOSTA (voice-over): Not so says the conservative group running the spot.

AMY MENEFEE, PATIENTS UNITED NOW: We're not saying there's a Canada health care act of 2009.

ACOSTA (on camera): But that's what the ad implies. Washington wants to bring Canadian-style health care to the U.S. That's what it says.

MENEFEE: Well, it is. It is that trend. It's trending in that direction.

POTTER: There are a lot of critics of the health care reform who say that we would be possibly rationing care if we reform health care. What you have now is rationing by corporate executives, and - who are beholden to Wall Street. It happens all the time.

(END VIDEOTAPE)

ACOSTA: In fact, the leading health care proposals in Congress would not set up Canadian-style health care in the U.S. They do offer Americans the option of joining a government-run plan. Critics say that would drive insurance companies out of business. Wendell Potter says the option would keep the industry honest, John, he says an industry that is dumping sick people.

ROBERTS: You know, the Urban Institute as well said that there was no reason for private insurers to go out of business, that some might be in difficulty, but the bigger ones should be able to stay in there. So, more on the discussion, Jim.

ACOSTA: Absolutely.

ROBERTS: It's all in the pot there and being stirred around. We'll keep watching this real close. Jim, thanks so much.

ACOSTA: You bet.

ROBERTS: You can read more about Jim's story on our show blog at cnn.com/amfix. Tell us what you think about this story and anything else, by the way, that comes to mind.