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CNN Live At Daybreak

Terrorists in Australia?; The Fight For Iraq; Bush Troubles; High Seas Piracy

Aired November 08, 2005 - 05:30   ET

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


CAROL COSTELLO, CNN ANCHOR: We understand. I'm sorry, I just had to say it.
Here is what's all new in the next half-hour of DAYBREAK.

An unforgettable vacation, how did the crew of a luxury cruise liner fend off a pirate attack? They had a secret weapon.

Plus, preventing a terrorist attack. Australian police say a terror swoop accomplished just that and netted nearly a dozen suspects in the process.

And remember our "Question of the Morning," political ads: what should be off limits? Should you use your opponent's ex-wife to smear him? Is that off limits? That happened in the New Jersey governor's race. We want to hear from you this morning. E-mail us at DAYBREAK@CNN.com.

(COMMERCIAL BREAK)

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello.

UNIDENTIFIED MALE: Here we go.

COSTELLO: And good morning to you. Welcome to the second half- hour of DAYBREAK.

Coming up in the next 30 minutes, U.S. and Iraqi troops are fighting insurgents near the Syrian border. A live report from the frontlines just ahead.

And the president is back in the United States. Was his trip to Latin America a success? We'll take a look.

But first, "Now in the News."

Americans in France are being warned to avoid areas where riots have occurred in nearly 300 towns. Rioters burned a bus and hundreds of cars last night. The government plans to impose curfews under a state of emergency law. It also plans to call up police reservists.

It is Election Day in several states. Among the high-profile ones, governor races in New Jersey, Virginia and New York, as well as contests for mayor in Detroit and San Diego. Gay-related issues are on the ballots in Texas and Maine. A section of Washington State's main east-west highway has been reopened after workers labored late into the night to clear a rockslide. Still, traffic on that section of Interstate 90 is limited to 35 miles per hour.

To the Forecast Center and, Jacqui Jeras, good morning.

JACQUI JERAS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: So back to reality.

JERAS: Yes.

COSTELLO: Because this has been the best November ever in the northeast.

JERAS: It has been pretty incredible.

COSTELLO: Thank you, Jacqui.

Australian authorities have arrested 17 men on charges of planning a terrorist attack. The suspects were rounded up after raids in Melbourne and Sydney in which police seized chemicals, firearms, computers and backpacks.

Reporter Chris Reisen (ph) reports on the suspects' first day in court.

(BEGIN VIDEOTAPE)

CHRIS REISEN, SEVEN NEWS REPORTER (voice-over): Outside the Melbourne Magistrates Court, associates of the men caught up in Australia's largest anti-terror operation decided they had had enough media attention. That's Channel 7's Matt Rose (ph) caught in the middle of the melee. Another camera took the force of a chair thrown at the lens.

UNIDENTIFIED MALE: Don't drink what's on the menu (ph). A drink (ph).

REISEN: Inside court it had been just as explosive as prosecutors detailed an extraordinary plot, nine Melbourne men allegedly hell-bent on carrying out a jihad, or holy war, in Australia. The court heard they had been planning for 16 months, stockpiling the same chemicals used in this year's London bombings and training at a camp outside Melbourne.

Among the accused, alleged leader, Melbourne cleric Abu van Bakr (ph). Each was charged with being a member of a terrorist organization. But in Sydney, the accusation was far more severe. The seven suspects were walked into the police operation center this morning and locked in individual cells, accused of conspiring to plan for a terrorist attack, namely to manufacture explosives. UNIDENTIFIED MALE: There is no evidence in these cases that terrorism was contemplated or being planed by any particular persons at any particular time or at any particular place.

REISEN: Under extraordinary security they were driven to central court late this afternoon. The complex was surrounded by a hundred armed police. The accused remained in the holding cells and made no courtroom appearance or appeal for bail. They'll appear again on Friday.

Chris Reisen, Seven News.

(END VIDEOTAPE)

COSTELLO: In Iraq this morning, decoys, bombs and booby-traps. That's what U.S. and Iraqi troops are dealing with as they try to flush out insurgents along the Syrian border. The mission is called Operation Steel Curtain.

CNN producer Arwa Damon is embedded with a U.S. Marine unit taking part in that assault and she joins us now live from Iraq.

Good morning.

ARWA DAMON, CNN PRODUCER: Good morning, Carol.

Well it's actually quite quiet on the frontline of this battle for Husayba today. There was some light fire hitting this morning, although nothing compared to what we have seen in the last few days.

And I'm actually standing on the rooftop of one of the buildings in central Husayba that's been blown up by U.S. Marines. And inside this building they found a spiraling staircase leading up to a sniper position that appeared to be abandoned. Elsewhere in the city, they found a few weapons cashes that they have destroyed. And they also found an IED-making factory -- Carol.

COSTELLO: Tell us about casualties. We've heard about dozens of insurgents being killed or wounded.

DAMON: Yes, that's right. They're estimating dozens, between 60 to 80 at least killed or wounded. The military does not necessarily like to put a number on them.

They are observing insurgents trying to flee the fighting, trying to run away and then coming together in groups in homes. And when that happens, when they have positive identification, they are dropping bombs on them.

But let me just compare today's frontline of the war with yesterday's. Today's, and I am actually standing at the very forefront of the battle of the push forward right now, and it is incredibly quiet. Whereas yesterday, yesterday evening at around 3:00 in the afternoon, U.S. forces came under RPG and small arms fire. And they responded. And it resulted in a battle that spread throughout the entire city. The gunfire lasted for about three hours. It was small arms fire, machine gun fire, incoming RPGs, air strikes. Pretty much the U.S. forces, and the Iraqi army with them, using every single kind of weaponry they had at their hands. It was a very, very intense situation as they moved forward.

Because, essentially, when they come under fire, even if they -- when they specify the building that they are coming under fire from, they still have to push forward towards that building. So yesterday's frontline in the evening, as the sun fell, incredibly tense. But this morning, ,as the sun came up, it's been quiet -- Carol.

COSTELLO: Arwa, when will they know, when will they declare victory? It's so difficult to fight you know an urban warfare. When will it be over? And will they know it's been successful?

DAMON: You know it really is what one Marine said to me. He said, you know this is straight up urban warfare.

And in terms of victory, for the Marine commanders here victory is when they are able to set up firm bases and establish a permanent presence in the city of Husayba, a permanent U.S. and Iraqi joint presence here. To be able to get out amongst the people, talk to the people, reestablish faith amongst the people in their own Iraqi army, in their own security forces so that they can then move on with their lives. So I really do think that victory, in terms of this area, in terms of this city of Husayba, is going to be when there will be a permanent joint U.S. and Iraqi presence.

COSTELLO: Arwa Damon, embedded with a Marine unit in Husayba, Iraq, reporting live this morning, thank you.

President Bush is back in Washington after a five-day Latin America trip. He's returning to a sea of political troubles.

CNN White House correspondent Dana Bash has more for you.

(BEGIN VIDEOTAPE)

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): In Panama, the president played tourist, taking in a view of the famous canal the U.S. gave up control of six years ago, testing out the gizmos that lift the boats, relieved to be with a host he calls friend to close an international trip, that was rocky in its own right, and provided no relief for anxious Republicans back home hoping to see a respite for a president beleaguered by low poll numbers, thanks to high gas prices, a botched Supreme Court nomination, a top aide indicted.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There is still an ongoing investigation.

BASH: One more time he refused to answer questions and sidestepped throughout Latin America about the CIA leak case. A Panamanian journalist even questioned the president's clout with his own Republican Congress. QUESTION: But what are the real probabilities of getting support in Congress and for the ratification of a free trade agreement?

BASH (on camera): Since the first stop on his four-day Latin America tour, dissent was the president's frequent companion.

(voice-over): Thousands of anti-Bush demonstrators took to the streets, a small band of them turning violent. They were rallied by the president's chief Latin America nemesis, Venezuela President Hugo Chavez, who Mr. Bush spent two days of summit meetings avoiding.

BUSH: I appreciate your candor.

BASH: Meetings he did have appeared tense.

UNIDENTIFIED FEMALE: Mr. President.

BASH: Argentina's president refused to take reporters' questions and later publicly chastised the U.S. for policies he said provoke misery and poverty.

The president left the 34-nation summit empty-handed, failing to revive talks on a giant trade agreement. From Argentina on to Brazil, side-by-side with one of the leaders who robbed him of that much- needed trade victory, he admitted his diplomacy had failed.

BUSH: He's got to be convinced, just like the people of America must be convinced.

BASH: The president's counterparts are more defiant, some believe, because he is weak at home.

BRUCE BUCHANAN, PRESIDENTIAL HISTORIAN: More than half of the American people now regard his presidency as in disarray and his standing tenuous with his own people, and that emboldens them to continue to resist him.

BASH: Knowing problems await his return, it's no wonder the White House ended a rough trip with this photo op. He's always found respite in baseball, and it shows.

Dana Bash, CNN, at the Panama Canal.

(END VIDEOTAPE)

COSTELLO: Just ahead on DAYBREAK, we'll tell you about a company that actually wants to be taken over.

But first, here's a look at what else is making news this Tuesday.

(COMMERCIAL BREAK)

COSTELLO: I just want to go on looking at that picture and hearing that music, don't you? But we must tell you about your news, money, weather and sports. It's 5:46 Eastern. Here is what's all new this morning.

It is Election Day in several states, including New York, where Republican Mayor Michael Bloomberg faces Democrat Fernando Ferrer. Voters in New Jersey and Virginia will choose new governors, while several states have ballot initiatives.

The man who sold insulating foam to The Station nightclub in West Warwick, Rhode Island says it was company policy not to warn customers the foam was flammable. That information could help club owners who are charged with involuntary manslaughter in the deaths of 100 people almost two years ago.

In money news, medical device maker Guidant is suing Johnson & Johnson over their merger. The company wants to force the health care company to complete its $24 billion purchase.

In culture, former New Jersey Governor and Environmental Protection Agency Chief Christie Todd Whitman makes her one-day-only stage debut next month for a playhouse in New Brunswick. She'll play an inspector for a government agency.

In sports, Peyton Manning and the Indianapolis Colts are now 8 and 0 after beating the New England Patriots 40-21. They did it in Foxboro, too, last night. Can you believe that? That's like a route. Since entering the league in 1998, Manning had been 0 and 7 against New England, but I guess that -- but I guess that curse has been lifted, Jacqui. Can you believe they scored 40 points on New England?

JERAS: Wow!

COSTELLO: New England has problems with defense this year, I know, but jeez.

JERAS: You can tell I know a lot about football -- Carol.

COSTELLO: I know, it's like no one -- no one at CNN likes sports. It's just astounding to me.

JERAS: I like weather. A lot of people like the weather these days, Carol.

COSTELLO: True. Good segue.

JERAS: Beautiful.

(WEATHER REPORT)

COSTELLO: Yes, I guess it is November.

Thank you -- Jacqui.

JERAS: Yes.

COSTELLO: What's the worst thing you expect to happen on a cruise, seasickness, too much Kathie Lee Gifford music? You probably never thought of the possibly of pirates. Up next, find out how one ship's crew fended them off. You won't believe what they used.

And remember our "Question of the Morning," political ads: what should be off limits? Anything? I mean, in New Jersey their ex-wives are in political ads dissing the opponent. We want to hear what you think about that and more. E-mail us at DAYBREAK@CNN.com.

(COMMERCIAL BREAK)

COSTELLO: Passengers aboard that cruise ship attacked by pirates off Africa have a real adventure story to tell when they get home. So what happened on your vacation?

Our Zain Verjee has more on the attack off Somalia and the crew's use of a sonic weapon to ward off the attack.

(BEGIN VIDEOTAPE)

NORMAN FISHER, PASSENGER: I had been awake for about 10 minutes when I heard what sounded like a crack from outside the window. I didn't -- I had no idea what it was.

ZAIN VERJEE, CNN CORRESPONDENT (voice-over): It was the start of a 90-minute assault, the pirates firing automatic rifles and rocket- propelled grenades at the ship, one narrowly missing a passenger.

CHARLES FORSDICK, PASSENGER: There was a woman in her cabin. And she was, fortunately, in her bathroom. But a rocket grenade went right through. It blew the whole cabin up.

VERJEE: The captain, who just had anti-piracy training, decides not to sound the alarm, passengers might come up on deck and into the line of fire. Instead, he orders them to lower decks and takes evasive maneuvers, speeding up, trying to ram the pirate boats, or flood them with the ship's wake.

One officer fires the ship's sonic sound deflector, blasting the pirates with sound waves to disorient them.

Finally, the Spirit loses the pirates and a U.S. Navy ship arrives to escort it to safety. The passengers have nothing but praise for the crew.

GEAN NOLL, PASSENGER: We had a wonderful captain, and he knew exactly what to do. And he got us out of harm's way.

VERJEE (on camera): One crew member was injured by shrapnel from the attack. And the company is making arrangements to get the passengers to Mombassa where the cruise was supposed to end.

Zain Verjee, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: Several international groups say the waters off Somalia and around Indonesia remain the most dangerous for pirate attacks. Early in the next hour, I'm going to talk to a Maritime security expert about piracy on the high seas and it's effects on governments and aid programs in those regions. In fact, she doesn't really think it was a pirate attack. She thinks it was something else and the attackers were, I don't know, were they terrorists? Well, we're going to explore all of those issues in the next hour of DAYBREAK.

Here's also what's coming up new in the next hour.

Internet downloads, what you don't know can cost you big time.

Also ahead, the fight to overturn legalized abortion. Are pro life activists winning? PBS' "Front Line" explores all sides of that issue. We'll talk to the show's producer.

(COMMERCIAL BREAK)

COSTELLO: What a beautiful shot of New York. What a beautiful sunrise here -- Jacqui.

JERAS: I love that song, too. I haven't heard that, like, since the '80s. I love it.

COSTELLO: You are so funny.

It is time now for some late night laughs, Jacqui, because you know if you missed Jay Leno and David Letterman last night, we have got the highlights.

JERAS: Excellent.

COSTELLO: Taking it on the chin, President Bush, France and FEMA.

(BEGIN VIDEO CLIP)

JAY LENO, "THE TONIGHT SHOW": Pretty scary trip for President Bush when he went down to South America. You see those people throwing molotov cocktails everywhere he went? That was weird. Or, as the White House spin doctors called it, a warm welcome. That's it. We got a warm welcome.

(LAUGHTER)

Actually, Bush's people are considering the trip a huge success, because while he was gone, nobody else got indicted. So they're whew!

These rioters, they say they are upset because they are immigrants who have been treated poorly by the French. What? French people treating foreigners rudely, I can't believe it. Stop the presses, when did this happen? My god! Hey, join the club.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP) DAVID LETTERMAN, "THE LATE SHOW": Have you -- have you heard about what's going on in France, this 11 straight days of rioting? It's jut been crazy. And -- but President Bush said don't worry, and he has offered France the full use of FEMA.

(LAUGHTER)

So they're going to go and...

(END VIDEO CLIP)

COSTELLO: A little food for thought this morning.

JERAS: That was a good one.

COSTELLO: You have more food for thought for us, because it's time to read some e-mail. Our e-mail "Question of the Morning" has to do with political campaign ads, because, man, some of them are really nasty. Because you know today is Election Day in many states in the Union.

JERAS: You bet.

COSTELLO: And we're asking political ads, what should be off limits? Specifically we're talking about the New Jersey governor's race, because both sides are bringing sexual history into play, sometimes through the mouths of ex-spouses.

JERAS: Well here is what people had to say about it, Carol.

Jessie Manning (ph) from Kanopolis, Kansas, says candidates should be required to run at least one commercial that talks about what they stand for as opposed to nothing but commercials that attempt to define their opponent's campaign.

This writer says I say that nothing should be off limits, that way it will be easier for the public to hopefully filter out who would make a good, just leader from someone who would make a lousy, dishonest one.

Brian House (ph) writes that personal life should be off limits altogether. If personal attacks are the best a political figure can use to get votes, then they must have weak political points -- Carol.

COSTELLO: And you know that's the thing. Like if you listen to the campaign ads in New Jersey, because I hear them on my TV all the time, there is nothing substantive. I don't know what either candidate is really about. I only know the nasty stuff associated with both.

JERAS: Right, you really have to rely on debates and the newspaper. I know our local newspaper here had a big spread of about two dozen different candidates who they were and what their views were.

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