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20 Americans Hostage at Sea; Vermont Legalizes Same Sex Marriages: iReporters Speak Out; Italy Quakes Toll Rises to 260 Dead, 28,000 Homeless GM Bankruptcy Preparations; Sizing Up Financial Aid

Aired April 08, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Wednesday, April 8th, and here the top stories for you in the CNN NEWSROOM. Pirates attack an American-operated cargo ship off the coast of Africa this morning. Twenty Americans apparently held hostage.

Sources say GM is speeding up preps for possible bankruptcy. The plan would split the company into -- listen to this -- a good GM and a bad GM. One small town comes up with its own economic stimulus plan: Go shopping. Get a gift certificate from the city.

Good morning, everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.

We are following a developing story on the high seas. Pirates hijack another cargo ship. This one carrying 20 Americans. It happened in the notoriously dangers waters off the African nation of, yes, Somalia again.

Right now we don't know what type of security the American crew may have had with them. The nearest U.S. warship was hundreds of miles away.

Live now to CNN's Stan Grant. He is tracking developments from Dubai and the United Arab Emirates.

And Stan, let's start with this -- we understand the vessel took several evasive maneuvers. Do we have any idea yet how long this vessel was under attack before it was ultimately seized?

STAN GRANT, CNN CORRESPONDENT: No, we can't confirm any of that, Tony. What we can tell you is that this attack has taken place about 500 kilometers -- that's about 300 miles -- off the coast of Somalia. You mentioned that there in your introduction. This is the most dangerous waters in the world.

Last year, a 200 percent increase in piracy off the coast of Somalia. There's been a bit of a lull recently, but just this week alone, six attacks.

Now, the Maersk Alabama is this ship. It's owned by a U.S. subsidiary of a Danish company, and it was carrying an American flag. There are 20 U.S. crew members on board.

Pirates are very, very highly organized, Tony. They are able to carry out these attacks in a very brazen fashion.

They use speedboats, they are heavily armed, they storm the ships, then they take them captive. They keep the crew members on board, and they hold them to ransom for many, many millions of dollars. You were talking tens of millions. Some estimates say that $150 million last year the pirates were able to make away with because of attacks just like the one we've seen today -- Tony.

HARRIS: Hey, Stan, so the vessel is now seized. Maybe you just alluded to it. What does history tell us about what happens next? And we know that in just about all of these cases, the ransom is ultimately paid. Do we understand why these companies ultimately make the decision to pay -- to negotiate with the hijackers and then pay the ransom?

GRANT: Yes. Look, it's a way of getting their crew members, their people freed. We know that when the ransom is paid, they do free the crew members.

In the past, the hijackers have not been interested in hurting the crew members. What they are after is money.

This is also a bit of a legal minefield. There is no legal jurisdiction when it comes to this type of piracy. You can't try these pirates in any court. And that's actually been an area of contention.

There have been suggestions that there should be a United Nations-backed international court to be able to try the pirates. But first you need to get them. At the moment, the pirates seem to be able to carry out these attacks wherever and whenever they like -- Tony.

HARRIS: So walk us through this again, Stan. This is a U.S.- flagged vessel, operated by the U.S. subsidiary of a Danish shipping company?

GRANT: Yes, that's right, Tony. Maersk is a very, very big Danish shipping company. This is operated by a U.S. subsidiary of that company. That's why it was carrying the U.S. flag, that's why it was carrying U.S. crew members.

Interesting to point out as well, Tony, here that the Defense Department in the U.S. uses Maersk a lot to be able to transport. It's part of its shipping contractors. Now, the Pentagon is saying in this case, it was not under contract, but it has been used in the past. What they are saying now is that this ship was carrying general cargo when it was hijacked -- Tony.

HARRIS: Got you.

And Stan, one more question. Could this U.S. crew on this U.S.- flagged vessel have requested an escort from the task force that is in those waters to prevent this kind of thing from happening?

GRANT: Yes. A really interesting question, that one. We actually put it to the U.S. Fifth Fleet, which is based in Bahrain, not far from where I am here in Dubai. And they are saying that if requested, yes, they can provide escort. It's not done as a matter of course.

And we're talking about an enormous area. This is a very, very big waterway.

Most of the military, most of the security is focused on the Gulf of Aden. That's where about a fifth of the world's oil supplies are transported through, and has been the scene of most of the attacks.

What we are seeing here, though, are attacks that are now taking place in deeper water. And we're seeing the pirates reacting to that security and carrying out the attacks elsewhere -- Tony.

HARRIS: Yes. Stan, great information.

Stan Grant for us.

Appreciate it, Stan.

The big question now, what happens next? Former FBI assistant director Tom Fuentes talked with CNN's Fredricka Whitfield earlier today.

(BEGIN VIDEO CLIP)

TOM FUENTES, FORMER ASSISTANT DIRECTOR, FBI: The normal situation, every company that's had a shape hijacked by pirates off that Somali coast has paid the ransom and has recovered all of their people intact. So, so far, because of the fact that the pirates have not yet killed one of the crew members, each of these shipping companies has continued to cooperate and pay the ransom.

(END VIDEO CLIP)

HARRIS: So this is the first time a ship flying a U.S. flag and carrying U.S. nationals has been seized. We'll come back to that point many times today, I'm sure.

The White House has just issued a statement regarding the hijacking.

Live now to CNN's Kate Bolduan in Washington.

And Kate, what is the administration saying?

KATE BOLDUAN, CNN CORRESPONDENT: Hey there, Tony.

Well, this is a statement we just received from White House Press Secretary Robert Gibbs within the last hour. The statement saying, "The White House is closely monitoring the apparent hijacking of the U.S.-flagged ship in the Indian Ocean and assessing a course of action to resolve this issue. Our top priority is the personal safety of the crew members on board." So as you said, this is the first time that so many U.S. nationals have been involved in it. And it is now getting the attention of the White House -- Tony.

HARRIS: OK. Kate, hard to know what the White House can actually do to effect this rescue, but we'll keep watching. And I know you will as well.

BOLDUAN: Absolutely. And you know, they're very tight-lipped, being very careful of how they craft a statement and what they say, especially when it involves the security of U.S. citizens.

HARRIS: Absolutely. All right, Kate. Appreciate it. Thank you.

Here's what we know about recent piracy activity.

The Maersk vessel is the sixth ship hijacked in the past week alone. Adding to that, pirates seized 15 ships last month off the east coast of Somalia. It is a very lucrative crime. Those pirates often get millions of dollars in ransom to release the ships.

So there is a lot riding on the New York International Auto Show this week considering the industry's tough times. The show kicks off on Friday.

Automakers pitching it as a place to try out technological breakthroughs that are changing the way you drive. Interestingly, they're not shying away from SUVs.

Chrysler rolling out a redesigned Jeep Grand Cherokee. And General Motors showcasing a New five-passenger GMC Terrain.

Will the road ahead for General Motors lead to bankruptcy? The automaker is trying to win enough concessions from its unions and creditors to avoid bankruptcy, but the clock is ticking and preparations are under way just in case.

There she is, Christine Romans, part of our money team.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Tick tock.

HARRIS: Tick tock. You're right about that.

Hey, Christine, how likely is it that we'll see GM actually file for bankruptcy?

ROMANS: Well, you know, someone close to the company saying that intense and earnest discussions under way, preparations under way for bankruptcy. They don't have a lot of time. June 1st is the deadline the White House task force on autos has given them to get their house in order. So this would be, of course, this huge -- a big industrial bankruptcy. Obviously, they've got to be making some preparations.

You mentioned, Tony, that they're trying to squeeze some more concession out of the unions, out of their debt holders. A source telling our Chris Izadore (ph) over at CNN Money that, in fact, the committee that represents the bondholders and the company has not held any meetings really since the president gave that June 1st timeframe. So it's interesting here. And you wonder how much the bankruptcy talk is really trying to push people to the table to get some more concessions.

HARRIS: You would think -- you mentioned tick tock, tick tock. You would think that that kind of pressure from this administration would move the parties to the table to hold these talks.

I'm always interested here when we talk about GM and the credit holders. Are the credit holders really willing to risk getting pennies on the dollar of what they're owed in a bankruptcy, not to make a deal now, where they could conceivably get more?

ROMANS: Yes, and I'm just not sure what the calculus is, too. I mean, there's some talk about having them swap out for equity.

You know, the stock is trading below $2 a share. It was down about 12 percent yesterday. It's been kind of rocky this morning.

You know, would they rather take a for-sure deal in stock, or maybe it's not for sure if you don't know how the market's going to react. You know, $28 billion is what the bondholders are owed basically by General Motors. So they're going to lose something.

I mean, they're going to have to take a hit somewhere along the lines. Just where they're going to take it and how they're going to take it -- you know, Tony, what it means for American workers, it's interesting. These economists over at Deutsche Bank, you know, their forecast for the unemployment rate for the second quarter of next year is 10.5 percent. They say with an auto industry bankruptcy, you will see 11.5 percent unemployment.

So even if the president's team can get some sort of structured bankruptcy where you're still operating, you're selling off some units, maybe you're carving out Cadillac and Chevy and you're selling some other, closing some other plants, economists are saying you're still talking about job loss.

HARRIS: What's that good GM/bad GM? Is that divisions where they're actually selling the brands, where they're actually selling some cars? What is that?

ROMANS: I don't know if it's necessarily as clear cut as that. It's one of many sort of options on the table. They're trying to figure out how to make it work.

But I think what we know from what the company has said before, is that Chevy and Cadillac are things that would stay. You would see some other, Hummer, Saturn, some other brands that may have to go. Unclear still about maybe like GMAC (sic) and some other brands, where they would go -- or GMC -- sorry, GMAC is the financing arm. GMC and where they would go.

I mean, there's just still a lot of uncertainty about what happens next for this company. But, you know, a source close to the situation saying that at this point, they have to be preparing intense and earnest preparations for a bankruptcy. Everyone wants to avoid it, but that might be what happens.

HARRIS: Appreciate it, Christine. Thank you.

More perspective now on the troubles facing automakers and the government's new get-tough approach to bailout loans.

Chief Business Correspondent Ali Velshi on the air now with his weekly radio show. And I don't know if he can hear us now or if he is in a call. It looks like he's in a call.

Hey, Ali, can you hear me OK?

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: I got you, Tony. I was just talking to my listeners about cars because I know you were talking to Christine Romans about that.

HARRIS: Yes. What are your callers -- what kind of questions do they have?

VELSHI: Well, we haven't started -- I've been doing most of the talking right now, but I'm sort of trying to figure out, you know, with the conversation of General Motors possibly looking at bankruptcy, and Ford being at a slightly better place, and the auto show being on right now -- in fact, I'm headed there after this show -- what's the likelihood that these car companies can, A, deal with the financial problem and the crisis that prevents people from buying cars -- and that crisis is that people may be losing their jobs and aren't thinking about buying a car, or even if they are, can't get the credit they need to do so -- versus how these car companies actually improve and make people believe that they're selling cars that people should be buying? And that's -- you know, it's a two-part problem.

General Motors came out with its Malibu -- it redesigned its Malibu. And that car was the car of the year last year. The Chevy Silverado is a great vehicle.

And the challenge that they've got is nobody is buying anybody's cars right now. So even though the Americans might have cars that are better quality or good value right now, very hard to convince people to try them out.

HARRIS: OK. Let me try this one on you. A number of analysts for some time now have suggested that with all of the legacy costs and everything else associated with GM, pensions and health care, that bankruptcy was necessary, would be the necessary course of action for GM. But we've also been spooked to thinking that GM couldn't survive bankruptcy.

Someone is going to call you today and ask you that question, and can GM survive a bankruptcy? And how are you going to respond?

VELSHI: Well, this is a good question. You know, over time, I think over the last few years, we have started to understand what bankruptcy means more. And it should mean restructuring. It means protection from your creditors, the ability to renegotiate contracts and obligations that you have.

Now, what the auto industry has been saying, in particular General Motors and Chrysler, is that in this environment, they couldn't restructure because you need to get financing, you need people to invest in you, and no one will invest in these companies because they're on the brink of collapse. And as a result, they may entirely fail.

So Chapter 11 is bankruptcy. Chapter 7 is just shutting down and selling off your assets.

And the other part of that is they have said that if they were to fail, that would have an impact on the auto suppliers because the auto suppliers supply more than one company. So if they don't get the money that they're due from Chrysler or General Motors, they may not be able to continue in business. Ford may not get its auto parts, and then Ford can't sell cars.

So they're saying that there could be a complete failure, a catastrophic failure, of everything to do with the auto industry in America if there's a failure of one of these companies. But the fact is now the government is saying they're going to have to seriously look at bankruptcy, and it seems like General Motors is actively considering that.

HARRIS: One to 10 here, are we going to see a bankruptcy for General Motors? What do you think, one to 10?

VELSHI: You know, hard to tell. I think it's right in the middle right now.

HARRIS: Really?

VELSHI: It's probably a five. I think you're going to see some form of restructuring that might look like a bankruptcy. Maybe the government will guarantee the money in the background. Maybe there will be other investors. But the bottom line here is when you restructure a company, there has to be some hope that it will emerge as a healthy company on the other end.

HARRIS: Got to have a market out there. Yes, and there has to be a market.

VELSHI: With the market as bad as it is, that's the problem. Until somebody shows an indication of wanting to buy a car and then, step two, buy a car made by an American manufacturer in greater numbers, we don't have a likelihood of light at the end of this tunnel, and that's what we're worried about. There's a few things that have to happen here to make a General Motors bankruptcy actually make sense, other than General Motors just going on the business.

HARRIS: Ali Velshi is on the line, on the air.

Good to see you, Ali. Good talking to you, as always. VELSHI: You, too, Tony. Always a pleasure.

HARRIS: That was good stuff. Yes, my pleasure.

Not waiting on the federal government, one Colorado town devises its own stimulus plan.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: On the "ROAD TO RESCUE," Vice President Joe Biden focusing on jobs. He sat down exclusively with CNN's Wolf Blitzer and Senior Political Analyst Gloria Borger. Part of the discussion centered on the millions of Americans who are now out of work.

(BEGIN VIDEO CLIP)

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": So far, as you know, the first three months, two million jobs. Five million-plus jobs lost over the past since January of last year. So what you're saying is that throughout 2009, every single month, it might not be 600,000 jobs lost, but there's going to be a loss of jobs every month?

JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: There will continue to be job losses the remainder of this year. The question is, will they continually go down before they begin to rebound in employment, we go down to zero job loss and back to employment?

Look, every major economist -- in the last major recession in '82, job gain lagged 18 months to two years behind unemployment, the so-called GDP, when we officially say we're growing and we're no longer in a recession. The measure for this administration will be whether or not at the end of our term, middle class people's standard of living have risen and not fallen, not merely whether GDP rises.

(END VIDEO CLIP)

HARRIS: Get paid to shop. Well, you heard me right on that one.

One small town has come up with its own economic stimulus plan, but you've got to buy to participate. I want it hear about this.

CNN's Jim Spellman is live now, via broadband, from Lamar, Colorado.

Well, you piqued my interest here, Jim. What are you talking about?

JIM SPELLMAN, CNN CORRESPONDENT: Hey, Tony. Here's how it works.

Go to Lamar, Colorado, spend $300 on just about anything but grocery and booze, they give you a $30 gift certificate only good at other shops there in Lamar. Buy a car, they give you a $100 gas card. You know, the idea, of course, is to boost the economy.

And I thought this was really interesting. The leaders there in the town, they've been studying the Great Depression. They have been finding out what towns survived and what they did to survive it. And this was something towns did during the Great Depression.

They used what they called script (ph), only good in one town. And it seemed to work back then, so they're giving it a whirl.

So -- and they really felt that they just couldn't wait for the federal government to get there. There was just so much -- so many of these shops are really on the edge.

Here's what the city administrator told me.

(BEGIN VIDEO CLIP)

RON STOCK, LAMAR, COLORADO, CITY ADMINISTRATOR: There was certainly a feeling of fear, of what's going to happen next? How bad is this going to be? How long is it going to run? Can I hang on? And we thought we would try to change that a bit.

(END VIDEO CLIP)

SPELLMAN: And a lot of these -- a lot of folks in town that I spoke to, merchants and people just on the street, are afraid that, even when the federal stimulus does make its way, it's really not going to have any impact on them. It's going to be all about big business and big corporations.

Here's what a used car salesman in town told me.

(BEGIN VIDEO CLIP)

ROGER STAGNER, USED CAR SALESMAN: Well, all of the government program are aimed at the big business. They're not aimed at the people who are actually spending the money.

This is aimed at the people that are spending the money. This is a thank you for them spending the money. And you know, some of the big programs, the small towns don't fit into them anyway.

(END VIDEO CLIP)

SPELLMAN: So, Tony, if you need to buy a new car, or a washer or dryer or something, come out to Lamar, Colorado. It goes through the month of April.

HARRIS: Well, that makes sense, but they exempted wine and spirits, right? So I might have to think about that one for a moment.

Hey, let me ask you...

SPELLMAN: You can...

HARRIS: Yes, go ahead. SPELLMAN: You can use your stimulus money to buy the booze, but you can't earn it by buying booze.

HARRIS: We did spirits, Jim. We called them spirits.

Hey, but let me ask you something. So, is the plan in place right now? And I'm wondering, what's the reaction of folks there in Lamar? Do they think it's a good idea? Are they participating?

SPELLMAN: Oh, yes. People are really excited about it.

They're saving up their receipts. It doesn't have to be one $300 purchase. You can save up your receipts.

So people in town, they've got envelopes with them and they're saving up receipts as they go. I spoke to one guy who bought a new snowblower, and he's ready to take his wife out to dinner on a hot date with his stimulus money come Sunday night. So people are pretty excited about it.

HARRIS: The new snowblower. Let's go out for a hot date.

All right. Jim Spellman with us.

Jim, appreciate it. Good report. Thank you.

What you need to know about financial aid before sending your child to college. Personal Finance Editor Gerri Willis has your top tips, and that's next.

(COMMERCIAL BREAK)

HARRIS: It is that time of year when high school seniors get that wild, crazed look. You know what I'm talking about. It's not spring break. I'm talking about college acceptance letters. Usually a financial aid award comes in the mail, too.

How do you compare?

Personal Finance Editor Gerri Willis is here to tell us.

Gerri, good to see you.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Good to see you, Tony.

HARRIS: Hey, so Gerri, what should a student zero in on in that letter?

WILLIS: OK. Well, you know, we're comparing these financial aid offers, and it's tough, because all the schools do them differently. It's like comparing apples to oranges. So the formats are different. It's going to look like the costs are different.

What you want to look for first is what they call the Expected Family Contribution, EFC. That's the bottom line, the amount of money your family will be expected to contribute.

You'll make a judgment about whether you can afford this, but some colleges will include loans in your total financial aid package. To get the true cost of the school, take out those loans, subtract the loans from the financial aid package. Remember, they have to be repaid. And consider not just the cost of tuition as you look this over, also out-of-pocket expenses, books, room and board, pizza, beer.

HARRIS: That's interesting. What if -- pizza, beer. Now we're back to the spirits again.

WILLIS: Pizza and beer, it's part of the out-of-pocket costs, yes.

HARRIS: OK.

What if your financial aid award isn't what you expected? What then, Gerri?

WILLIS: Well, let's talk about looking at these side by side.

HARRIS: Good.

WILLIS: We can really compare them really well.

Obviously, you're comparing loan offers, and what you're looking for is interest rates and repayment terms. Then you want to analyze affordability over time.

You're going to have to ask, will the scholarship be available next year? Will I get it next year? What kind of money will be available to my family sophomore year, junior year, senior year?

And then analyze the costs of attendance. These are indirect costs like transportation and health care.

Look, you can also compare your aid letters by going online. Go to these Web sites. They have great calculators -- collegeboard.com, finaid.org.

Look, generally speaking, you'll want to accept grants and scholarships first. That's the free money. Then you accept the loans that are interest free while you're in school. These are Perkins, subsidized Stafford loan, or any work study. Then you take the unsubsidized Stafford.

And lastly, only if you have to, and they are difficult to get, private student loans.

HARRIS: Yes. What if your financial aid -- what if it's not what you expected?

WILLIS: You know, it's not really set in stone, Tony. You can ask for an appeal. They call it a professional judgment review.

If something's changed in your finances, maybe you lost a job, you have the right to ask for more aid. Experts recommend not going directly to the financial aid office in person. It's harder to negotiate that way. You're better off writing a letter, phoning, maybe setting up a meeting then.

Finally, remember what's offered one year may not be available the next. Federal aid is based on your family's income from the previous year, and, of course, as we know, that can change.

HARRIS: Well, Gerri, I'm getting the rush here, but I see you've got a bit of good news here regarding the economy. Apparently, there's a new report out showing people are actually trimming down their credit card debt. And we love that idea.

WILLIS: Right. It's great. Balances on credit cards fell at a 9.7 percent annual rate in February. The fastest rate of decline since late 1976, a very big change.

Something I got to say though, some of this is being forced often us by the credit card issuers because they're lowering limits.

HARRIS: Yes, right. You're right.

WILLIS: So hopefully a lot of you out there, though, are paying off your credit cards.

HARRIS: Gerri, good to see you. Great tips, great advice, as always.

WILLIS: Enjoyed it.

HARRIS: And if you're trying to keep your family fed and in their home, here's a question, should you spend your child's inheritance? Click on CNNMoney.com to find out.

And still ahead, pirates take center stage as they hijack another cargo ship. This one with Americans on board.

(COMMERCIAL BREAK)

HARRIS: Pirates strike again, this time hijacking a U.S.-flagged cargo ship with at least 20 Americans on board. The Maersk Alabama was attacked about 300 miles off the coast of Somalia. White House spokesman Robert Gibbs says the Obama administration is closely monitoring the situation and assessing a court of action.

Maersk is a Danish shipping line with headquarters in Norfolk, Virginia. The 17,000-ton hijacked ship was heading to Kenya carrying food aid. Pirates use various tactics to hijack those huge oceanliners. The attacks centering in and around the horn of Africa.

Our David McKenzie reports.

(BEGIN VIDEOTAPE)

DAVID MCKENZIE, CNN CORRESPONDENT (voice-over): Pirates posing on a captured vessel. Their weapons proudly displayed. These are the ragged (ph) buccaneers bringing in millions of loot. It's so compelling because it's so unlikely.

Let's put it into perspective. Pirates nabbed the gigantic super tanker the Sirius Star. It's longer than three football fields and captured it with a skiff as big as this. It's about as long as your car. So how did they do it?

Will Geddes has 20 years of experiment as a security expert and tracks pirate tactics closely. He says it's often a matter of deception rather than force.

WILL GEDDES, CEO, INTERNATIONAL CORPORATE PROTECTION: The problems that many tankers have when they're approached by pirates is that they will present a threat on a number of levels. They can either pretend to be officials that are seeking to board the actual ship for inspections. They can masquerade as Coast Guard.

MCKENZIE: And even without the mask, they can always rely on scare tactics. They use fast skiffs with RPGs and assault rifles. A well-place shot with one of these could puncture the hull of boats that can carry dangerous cargo like chemicals, oil and weapons. So the crew is usually happy to sit it out in the hijack, waiting for ransom, rather than risk blowing up their vessel and themselves. And wherever the crew goes in this entire million square mile region, they are at risk because pirates have advanced.

GEDDES: What we are seeing with these Somalian pirates is their ability to use some of the ships that they've captured already to enable them to reach further afield and to into deeper nautical miles to actually capture larger ships.

MCKENZIE: They are called mother ships and maritime agencies warn that their use is expanding the pirate reach and the pirate threat.

And though the warships in the area patrolling for pirates have the guns and the technology to thwart the pirates, there are just not enough boats in the water to patrol this giant, expansive ocean. So, until they can be reined in, these unlikely ocean hijackers will still have the tactics and the territorial reach to take on as many goliaths as they can get their hands on.

David McKenzie, CNN, Nairobi.

(END VIDEOTAPE)

HARRIS: A former Cuban President Fidel Castro says he wants to know how he can help President Obama. That word from members of the Congressional Black Caucus now home from Havana. The lawmakers met with Castro's brother, Raul, Monday and yesterday spent two hours with the former dictator. They say Castro's eager for a change in U.S./Cuban relations and an end to the 50-year-old embargo.

Earlier on CNN's "AMERICAN MORNING," Congresswoman Barbara Lee responded to critics.

(BEGIN VIDEO CLIP) KIRAN CHETRY, CNN ANCHOR: By meeting with the Cuban leadership, do you risk appearing to condone some of these human rights abuses?

REP. BARBARA LEE (D), CALIFORNIA: Absolutely not. What we went down to Cuba to discuss was how we can help push the ball forward, what it would take to begin dialogue. Once - and we heard over and over again that everyone issue that the United States feels important, wants to discuss, every issue that has been raised for the last 50 years would be on the table for discussion. And so, our purpose was to see if there were preconditions on the Cuban side. We heard that there were no preconditions and, in fact, we wanted to find out if they were interested.

We have to remember that every country in Latin America, 15 countries, have normal relations with Cuba, most of the E.U. We're the country which is isolated. The American people should have a right to travel to Cuba to determine their own perspective. And so, all we're saying is, do we need to move forward to have constructive dialogue based on national sovereignty and mutual respect.

(END VIDEO CLIP)

HARRIS: Both the Senate and the House of Representatives have introduced legislation that would end the travel ban on Cuba. And farm states are pushing to end trade restrictions.

Nearly 50 years later, is it time to treat Cuba less like an enemy and more like a neighbor? We will get into that next hour with CNN's Rick Sanchez.

Where is the picture of Rick?

As you might imagine, he has some strong opinions on this topic.

More states paving the way for same-sex marriage. Our iReporters weigh in. That's next.

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HARRIS: Yesterday during our hours, Vermont's House and the Senate voted to override the governor's veto legalizing - on a bill legalizing same-sex marriage in the state. And the move is stirring, as you can imagine, a lot of reaction from our iReporters. Let's head over to CNN.com's iReport Desk and check in with producer Katie Hawkins-Gaar.

And you know, Katie, interesting here that it wasn't a court order that forced the state to take up this issue again. And I'm wondering how our iReporters are responding.

KATIE HAWKINS-GARR, CNN.COM PRODUCER: Right. It wasn't a court order, you're correct. And Vermont follows Iowa, which made a similar ruling last week. So, this has brought the issue back to the national spotlight. And as you can imagine, our iReporters do have a lot to say. Now, we didn't hear from anyone who's outwardly opposed to the idea of same-sex marriage, but we did hear from an iReporter who has a difficult time accepting the idea. We also heard from one whose in full support.

So let's watch those videos.

HARRIS: OK.

(BEGIN VIDEO CLIP)

ORLANDO ECHEVARRIA, CNN IREPORTER: The reality is, technically we should not be brown nosing, if you will, into people's life. Even if -- even if -- if people like myself oppose, even if we oppose to the top of our lungs until we glow red in our faces or blue in our faces from holding our breath, that we oppose it. These are -- these are actions that two consenting adults who are not hurting anybody.

MONICA TOUPS, CNN IREPORTER: It is completely unacceptable in this country that we still have second-class citizenry. It is shameful that we do not give our gay population some sort of civil unionship, domestic partnership, some sort of legally recognized bond. It is important.

It is important for several reasons. One, that if they become sick, they can be visited in the hospital. If they are in a coma, the person who is their partner can know what their wishes were, whether it be their final wishes or whether or not they wanted a do-not- resuscitate order or anything in the medical concept. It's very important for those reasons.

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HAWKINS-GAAR: Now, these are just a sampling of the viewpoints out there. These videos are spurring a pretty spirited discussion on iReport.com.

HARRIS: I'm wondering, Katie, can you name the states now that have legalized same-sex marriage? Yes, see...

HAWKINS-GAAR: I know Vermont and Iowa.

HARRIS: Exactly. But a lot of the members on the team struggle with this one as well. So, you're in good company here. So, we're talking about Vermont...

HAWKINS-GAAR: You know as well?

HARRIS: Well, yes, I do, because I know everything. Vermont, Iowa, Massachusetts and New Hampshire.

HAWKINS-GAAR: Good job.

HARRIS: Good iReport, Katie, appreciate it. Thank you.

HAWKINS-GAAR: Thank you. HARRIS: Alive and well. A 98-year-old woman pulled from the earthquake rubble in central Italy. We will take you there live next in the CNN NEWSROOM.

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HARRIS: We have new information about the crew of the American- flagged ship hijacked off Somalia. The two top commanders are graduates of the Massachusetts Maritime Academy. "The Cape Cod Times" says, Captain Richard Phillips is a 1979 graduate and his second in command is Captain Shane Murphy. Murphy's father is a professor at the Maritime Academy. The paper says Murphy contacted his mother by phone and said he was safe.

And this bit of news, the shipping company, Maersk, is holding a news conference from Norfolk, Virginia next hour. We will, of course, bring that to you live right here in the CNN NEWSROOM.

Italy's leader puts the death toll at 260. Strong aftershocks rattled the quake zone overnight causing damaged buildings to collapse. The prime minister says 28,000 people - can you imagine that? - are homeless and nighttime temperatures are in the 40s. The 6.3 quake shattered the medieval town of L'Aquila Monday.

CNN's Fionnuala Sweeney is on the scene.

And Fionnuala, so compelling, that shot from, I believe, that same location where you are today of the tent city. I'm wondering if it continues to grow today and if others are springing up?

FIONNUALA SWEENEY, CNN CORRESPONDENT: Oh, it does continue to grow, Tony, and it will for some time.

Let me give you a sense of how it's evolved since yesterday. For example, if we can just pan over here, you can see this beige, long tent which really just sprung up this morning. And it is a food hall to serve food to the several hundred people, families who are here.

You can see, perhaps, the snow on tops of the mountains in the background, an indication of how cold it does get here in the evening.

And if we can bring the camera across slightly, we can show you, perhaps, one of the more positive aspects of the aftermath of this quake. And it is a little tent where clowns have been brought along for children to play. The clowns I think probably taking a bit of a tea break at the moment. But there you can see that everything is being catered for as best it can.

This is one of several tent cities in and around L'Aquila and it's one of many which are growing and will continue to evolve over the next few weeks. The issue here for the people is hat they have no homes to return to. And those that do, Tony, are unable to return to their homes because they've been deemed unsafe.

And earlier I spoke to the head of the protection agency here, and he was saying how long it might take for these people to be able to finally return to their homes.

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AGOSTINO MIOZZO, INTERNATIONAL PR CIVIL PROTECTION AGENCY: It could take some weeks. We're sure some weeks because the houses that have been damaged are a great number, a huge number. So it would take weeks, probably between one, two months.

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SWEENEY: Agostino Miozzo there saying how difficult it really is, particularly with the aftershocks that keep coming here over the last few days since the earthquake struck earlier on Monday morning. That stops them in their work. It stops them inspecting buildings to see whether people can return. It stops the rescuers trying to rescue those still dozen or so people who are trapped under the rubble. And it basically makes a very fluid situation for everyone.

We have heard in the last few hours that there will be a huge funeral, not here in this town, but in an adjacent town on Friday. It is, of course, Good Friday here. And so this will be a very emotional scene for those who have lost their loved ones in this very Catholic- Italian country.

HARRIS: Boy, I can only imagine. OK, Fionnuala Sweeney for us.

Fionnuala, appreciate it. Thank you.

And if you'd like to help Italy's earthquake victims, information is just a click away. Just log on to CNN.com/impact. There you will find links to the Italian Red Cross, the National Italian American Foundation and other aid agencies operating in that region.

Our top story next hour, pirates holding 20 Americans hostage aboard a hijacked cargo ship in the horn of Africa. We are bringing you live coverage of this developing story.

Plus, connecting with Cuba and Castro. Members of the Congressional Black Caucus just back from Havana. And our Rick Sanchez will join me live with how this is all playing out in the Cuban-American community.

And electric cars generating new energy. Are they the cars of the future? CNNMoney.com's Poppy Harlow will join me live with a look.

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HARRIS: Pirates strike again. This time hijacking a U.S.- flagged cargo ship with at least 20 Americans on board. The Maersk Alabama was attacked about 300 miles off the coast of Somalia. White House spokesman Robert Gibbs says the Obama administration is closely monitoring the situation and assessing a course of action.

Maersk is a Danish shipping line with headquarters in Norfolk, Virginia. The 17,000-ton, hijacked ship was heading to Kenya carrying food aid.

We have new information now about the crew of the American flagship that was, as we just mentioned, hijacked off Somalia. The two top commanders are graduates of the Massachusetts Maritime Academy. "The Cape Cod Times" says Captain Richard Phillips is a 1979 graduate and his second in command is Captain Shane Murphy, Murphy's father is a professor at the Maritime Academy. The paper says Murphy contact his mother by phone and said he was safe.

And this additional bit of information for you. We understand that the shipping company, Maersk, is planning to hold a news conference in this hour from Norfolk, Virginia. And when that happens, we will bring you that news conference, of course, live.

Let's get you now to CNN's Stan Grant. He is tracking developments from Dubai in the United Arab Emirates.

And Stan, a couple of questions here. First of all, I want to understand a bit of the history of these hijackings. We are talking about massive vessels here that are essentially being hijacked by these small bands of pirates on essentially skiffs the size of your car. How is this happening?

GRANT: It's extraordinary, isn't it, Tony...

HARRIS: It is.

GRANT: ... when you think about it, what they're able to achieve? How they're able to actually take control of these enormous ships.

And we've seen pictures of this in the past, just last year where see these very small skiffs, these speed boats, and they would climb aboard with ropes and take control of these enormous ships, some of them the size of three football fields. They seized a tanker just last year carrying $100 million worth of oil from Saudi Arabia, precisely using this same method.

But they are very, very highly organized. They use these speed boats to come up to the ships. They climb aboard. They are very heavily armed, and they're able to take control. Once they've taken control, they hold the crew hostage, and from there they demand a ransom. The ransom has been paid in the past, and then they release the crew members.

This is all organized to raise money, Tony.

HARRIS: Hey, Stan, you mention a point that maybe we should go back to. Because we're talking about these guys on these -- these pirates on these skiffs, but you mention that they're heavily armed. And we're not talking about just sort of machine guns here. I mean, they are standing in these skiffs with, in some cases, these RPGs threatening, aren't they in many cases, to sink the vessel?

GRANT: Exactly. Rocket propelled grenades. They have AK-47s. They know what they're doing. This is very orchestrated, very organized. They're often portrayed, I suppose, as a ragtag bunch and they could appear to be that way. But if you look at their success rate, this is anything but ragtag. They are organized. They're very brazen. They carry the attacks out on the high seas, as you just pointed out, in small skiffs. But they're organized, they're armed, and they've been successful, Tony.

HARRIS: And if you would, sort of bring us up to speed on the very recent history of these hijackings, because they're on the rise. There's an uptick to talk about here.

GRANT: Yes, indeed. Twenty U.S. crew members currently being held aboard the Maersk Alabama. Now this -- another vessel that was seized in the early hours of the morning. The pirates were able to come aboard and hijack that ship. This is the sixth hijacking just this week alone. There were five in a 48-hour period.

There had been a little bit of a lull up until now. There was a 200 percent increase in piracy off the coast of Somalia last year, making the waterway the most dangerous of the world. But there had been a lull. They have shown now with this attack on the Alabama that - the Maersk Alabama, that, yes, they can still carry out these attacks and, indeed, they will carry out the attacks. And they demand a very high ransom for the release of the crew members.

We haven't heard any details about what has happened aboard, what has happened to the crew, what the ransom details may be. That is all still to unfold, Tony.

HARRIS: One more quick question for you, then I'm going to take up a lot of issues with your colleague, David McKenzie in just a moment. This is a U.S.-flagged vessel, my understanding and our understanding, is operated by U.S. subsidiary of a Danish shipping company. I'm just sort of curious, could this crew, this U.S. crew, have requested an escort from the task force that is in those waters to prevent this kind of thing from happening?

GRANT: Yes. You need to look at the waterways we're talking about. This is a vast area, of course, and the U.S. Navy does operate in the area, as do NATO vessels. In fact, vessels from about nine different nations operate in the region. Most of that is focused on the Gulf of Aidan. This is a strategically important waterway for about a fifth of the world's oil supplies pass through or are transported through there. But the pirates have changed tact. They are now moving away from there where they've carried out most of the attacks, and have been focusing in on vessels in deeper water and in other areas.

We spoke to the Navy and said could they provide this type of escort. Yes, they can, they said, if the escort is requested. It is not done as a matter of course, Tony.

HARRIS: All right, Stan. Appreciate it. If you would, stand by, because we're going to do a lot more on this as we walk everyone up to this expected news conference this hour from Maersk out of Norfolk, Virginia.