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CNN Live At Daybreak
U.S. Military Personnel, Non-Iraqi Civilians Come Under Attack; White House Now Agreeing to Allow Condoleezza Rice to Testify in Public
Aired March 31, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: More deadly attacks on Americans and Iraqis. In two minutes, we take you live to Baghdad.
Good morning to you.
From the CNN global headquarters in Atlanta, this is DAYBREAK for Wednesday, March 31st.
I'm Carol Costello.
Here are the latest headlines this hour
Violence flares around Falluja. Separate attacks today. In one, civilian cars are attacked and burned. Eight people killed. Plus five U.S. military personnel killed by a roadside bomb.
With gas prices at a record level in the United States, OPEC ministers meet today. They are expected to approve a planned cut in the production of crude oil.
Ante up for Afghanistan -- donor nations meet in Berlin today, with the Afghans hoping to get $4 billion to help rebuild their country.
And two and a half years after 9/11, an EPA group holds its first meeting on environmental issues and health risks for workers and residents.
Up to the forecast center now and Chad for a first look at the weather today -- good morning.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: A busy day and a bloody one for insurgents in Iraq, as both U.S. military personnel and non-Iraqi civilians come under attack.
Let's head live to Baghdad now and CNN's Jim Clancy.
He has more details for us -- hello, Jim.
JIM CLANCY, CNN CORRESPONDENT: Carol, this was a day that started out with bad news for the coalition and that news only got worse. The U.S. military now confirms that five of its troops were killed when a bomb planted in a roadway exploded as their convoy was passing over it. We do not know what branch of services these five were with. The U.S. military only confirming their deaths now.
This was west of Baghdad, near Falluja.
Meantime, inside Falluja, disturbing videotape of another attack has come forward. This attack occurred inside the city of Falluja, which, of course, is an epicenter of anti-coalition violence. It appears that at least four people were killed. Their cars were then set alight and demonstrators came out to celebrate and also to hurl stones and chunks of concrete, venting their range against the occupation.
Now, the details, the identities of those that were inside the two vehicles are not known. A CNN source in Falluja tells us that those vehicles were tracked coming out of a nearby U.S. military base. They are vehicles, SUVs of a type that is used by the Civilian Provisional Authority and by many others, including journalists. We say that because some of those inside the cars were seen to be wearing bullet-proof vests, which are common among journalists; also among some CPA authorities and security men, private security men that have been hired to protect civilians working with the coalition in Iraq.
Another incident, this one occurring north of Baghdad in the town of Ba'qubah. An apparent IED or improvised explosive device detonated while some civilians were passing in a vehicle. It was reported by the police there in Ba'qubah to CNN that seven people were injured in that blast, although their wounds were not serious. They were treated at a local hospital and then released.
So that gives you an idea of what kind of a day it has shaped up to be in Iraq. And it is barely half over -- back to you, Carol.
COSTELLO: Jim Clancy live in Baghdad this morning.
Well, the White House says the sooner the better. It is now agreeing to allow National Security Advisor Condoleezza Rice to testify in public and under oath before the 9/11 panel. White House officials are hoping to schedule that appearance for next week.
Here's CNN's John King on how substance trumps politics.
(BEGIN VIDEOTAPE)
KING (voice-over): The president's dramatic turnaround came as perceptions mounted that the White House had something to hide.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I consider it necessary to gaining a complete picture of the months and years that preceded the murder of our fellow citizens on September the 11th, 2001.
KING: After months of saying no, National Security Adviser Condoleezza Rice will now testify before the 9/11 commission in public and under oath. BUSH: So that the public record is full and accurate.
KING: The deal clears the way for a high stakes rebuttal, one of the president's closest advisers taking issue with former deputy Richard Clarke and his explosive allegation the president and Rice ignored warnings al Qaeda was poised to strike.
THOMAS KEAN, 9/11 COMMISSION CHAIRMAN: We've got to try and clear up those discrepancies as best we can.
KING: Democrats can no longer claim stonewalling by the White House.
SEN. EDWARD KENNEDY (D), MASSACHUSETTS: Now the White House bowed to the inevitable and they conceded to the obvious.
KING: And Republicans are counting on Rice to supplant Clarke as the commission's star witness.
UNIDENTIFIED MALE: She will have the opportunity to come forward with what I know will be a very powerful testimony and one that will set the record straight.
KING: The White House also is granting more access to the president and vice president.
They had offered meetings only with the commission chairman and vice chairman but now an invitation for a joint meeting with the full 9/11 commission where the president and vice president will answer any and all questions, though in private and not under oath in their case.
White House counsel Alberto Gonzales told the commission "the president recognizes the truly unique and extraordinary circumstances of helping the 9/11 panel investigate the attacks."
To seal the deal, the commission agreed 9/11 was such a unique event that Rice's testimony should not be considered a precedent for having senior White House officials testify before Congress or other commissions created by Congress. The commission also agreed Rice is the only White House official who will be asked to testify publicly.
(END VIDEOTAPE)
COSTELLO: And we want to fill you in a bit on the background of Condoleezza Rice. She became national security adviser on January 22, 2001. She was a member of the National Security Council under the first President Bush, between 1989 and 1991. And Rice served as special assistant to the director of the joint chiefs of staff in the Reagan administration in 1986. And she first met President Bush in 1995 while she was visiting his father in Texas.
More on the White House reversal coming up at the bottom of the hour, when Judlyne Lilly of Washington's WTOP News Radio will join us live.
And coming up in the 8:00 a.m. Eastern hour of CNN's "American Morning," Thomas Keene, chairman of the 9/11 Commission, will have more reaction to Rice appearing before the panel.
White House officials and many of us will be watching developments at today's OPEC meeting in Vienna. A planned production cut could send gas prices in the U.S. even higher than they currently are.
Live now to CNN's Diana Muriel in London -- good morning, Diana.
What will the OPEC ministers do?
DIANA MURIEL, CNN CORRESPONDENT: Well, it seems that for some, at least, they think it's a foregone conclusion. OPEC ministers have been gathering in Vienna for this meeting. They made a decision back in February at their meeting in Algiers that they would, indeed, cut oil production by a million barrels per day at the beginning of April and a further million barrels per day by the end of the month.
Now, there's some pressure from some of the OPEC ministers, Kuwait amongst them, that they should defer those cuts until the oil price drops. The oil price, of course, is nudging $40 a barrel. It's jumped by $0.80 in the New York price, light sweet crude for May delivery trading at $36.25, nudging 13 year highs that were seen earlier this month.
Now, if they do, indeed, decide to cut that production, as they have said, then the effect won't really be felt in the United States until about six weeks time, once the contracts have expired and the new contracts are coming in with that production cut factored in.
The OPEC has said that speculation in the market has pushed the oil price higher. They blame the poor performance of stock markets, saying that hedge funds and pension funds and other speculators have come into the market to buy commodities and they're focused on oil. That's pushed the price higher. Others say that's not the reason why the oil price has jumped. They say it's because of demand, that the demand for oil in the world, particularly in the United States, is much higher than it's been in the past.
All of this, of course, is factoring in for consumers, who are paying much higher oil prices at the pump -- Carol.
COSTELLO: You know, Diana, it's really funny, I was looking at OPEC's Web site. It's very defensive about being the scapegoat in rising gas prices. It actually blames taxation on gas as the primary reason that gas prices are so high, not only in the United States, but around the world.
MURIEL: Well, indeed, and the British consumers are only too well aware of that. They pay some of the highest pump prices in the world and 80 percent of the price is tax taken by the British government. Indeed, Europeans pay an average price per gallon of $5. That compares to the American, the average American price, which currently stands at about $1.74, 1 3/4 dollars. So that's a very big difference. And a lot of that, in terms of the European prices, is, of course, tax. But demand has been extremely high, say some of the analysts, much higher than the statistics reflect. We are going to see now a drop in demand. This is a seasonal drop. We've been through the winter months when there's a very large demand for oil. We haven't yet hit the summer driving season in the United States, where, again, demand peaks.
But so we should see a fall in demand and that will mean, according to the old, the old economic model, a fall in prices. And that would be a very welcome relief to consumers all around the world -- Carol.
COSTELLO: You're not kidding.
Diana Muriel live from London this morning.
OPEC's decision may have more of a symbolic effect than anything else on drivers in this country. But make no mistake about it -- the cost of gas is fueling debate on the campaign trail.
CNN's Kelly Wallace has more for you on that.
(BEGIN VIDEOTAPE)
WALLACE (voice-over): John Kerry, hoping to get political mileage out of sky-rocketing gas prices, makes an unscheduled stop in San Diego, where a gallon of unleaded goes for $2. 15. In his speech, he charges the Bush team has done nothing to bring gas prices down.
KERRY: If the gas prices keep rising at the rate they're going now, Dick Cheney and George Bush are going to have to carpool to work.
WALLACE: But the Bush-Cheney reelection campaign fired the opening salvo in the debate with this new ad now running nationwide, accusing the senator from Massachusetts of supporting higher gasoline taxes on 11 separate occasions.
UNIDENTIFIED MALE: Some people have wacky ideas, like taxing gasoline more so people drive less. That's John Kerry. He's supported a 50-cent a gallon gas tax.
WALLACE: And this from the president himself during a visit to the battleground state of Wisconsin.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There are some in the other party in Washington who would like to raise gas taxes. I think it would be wrong. I think it would be damaging to the economy, not positive to the economy.
WALLACE: How potent is the issue? A look at a couple of the key battleground states, Ohio, Missouri and Nevada, show gas prices are close to or above the current national average of $1. 75 a gallon. And in a new CNN-USA Today-Gallup poll, 69 percent of Americans said that rising gas prices were either a crisis or a major problem.
Kerry said as president he would put more pressure on OPEC to increase oil production and would temporarily stop sending hundreds of thousands of barrels of oil every day into the United States' emergency stockpile known as the strategic petroleum reserve.
KERRY: We should stop diverting that so the supply to the economy and to the country is higher, which brings price down.
WALLACE: But the Bush-Cheney team said four years ago Kerry said releasing oil from the strategic reserve would have a negligible affect on prices because it would take months for the oil to goat to the market.
(END VIDEOTAPE)
COSTELLO: A dangerous fireball tops our look at some of the news across America this Wednesday.
Workers were evacuated, nearby residents told to stay indoors after an explosion at a Texas refinery, oil refinery. The warnings were lifted after a few hours, when the fire was brought under control. It's unknown what caused this explosion. No injuries reported. I believe this was in Houston.
New allegations of sexual assault at the University of Colorado. An official attending a panel on football recruiting practices says two more women say they were raped by football players. Panel members say under age recruits had access to alcohol, as well.
The Justice Department is defending a Muslim girl's right to wear a head scarf in class. Parents of the sixth grader in Oklahoma sued the school district for suspending her. School officials say the head scarf violates the dress code. Federal attorneys claim the girl's civil rights are being violated.
Less than an hour from now, British Prime Minister Tony Blair is likely to face some tough questions from law makers about a suspected terror plot. Police are still sorting through the evidence following raids that turned up eight suspects, along with a half a ton of fertilizer, ammonium nitrate, the key ingredient of the Oklahoma City bombing.
On to London now and our Matthew Chance.
Bring us up to date -- Matthew.
MATTHEW CHANCE, CNN CORRESPONDENT: Carol, thank you.
And British anti-terrorism police still questioning those eight men you mentioned there suspected of being involved in this bomb plot, which was uncovered in what's been described as one of the biggest ever anti-terrorism operations in the United Kingdom. The arrests took place during dawn raids across the southeast of England, as detectives seized, as you mentioned, as well, half a ton of fertilizer, ammonium nitrate, which could be used in combination with other chemicals to make extremely powerful explosive material.
Now, it's not been officially confirmed, but it's believed the eight individuals are being held at a high security police station at Paddington Green here in London, where they could be held for up to two weeks under this country's tough anti-terrorism laws.
Security sources saying that the raids followed infiltrations of suspected extremist Islamic groups across the United Kingdom, who they believed were planning to carry out some kind of bomb attack, not against any political or military target, but against the British public here in the United Kingdom mainland -- Carol.
COSTELLO: Matthew Chance reporting live from London.
The search goes on. Iraq's new chief weapons hunter says he has new information and a new strategy for flushing out Saddam's missing WMDs. That's new at 5:30.
Also, the gloves come off as the mikes come on and Air America debuts.
Some wannabe Hooters girls get some high powered legal aid.
And forget that apple, a drink a day may be the prescription for good health.
This is DAYBREAK for Wednesday, March 31st.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It's 5:18 Eastern time.
Here's what's all new this morning.
Violence in Iraq against civilians and Americans. Coalition officials say five U.S. military personnel were killed in a roadside bombing near Falluja.
It's already passed in the Georgia State Senate. Now a constitutional amendment to ban gay marriage is headed for the House for a vote, probably today. If that passes, voters will weigh in this fall.
In money news, your next meal on a plane may be one you buy. "USA Today" reports airline catering companies are joining forces with brand name restaurants to sell food on flights.
In sports, a knee injury will keep Philadelphia 76er Alan Iverson on the bench for the rest of the season. Can you believe it? He's still set to play for the U.S. at the Athens Olympics in August, though.
In culture, it is the launch of the liberals on the airwaves. Comedian Al Franken is among those taking to the microphone for today's debut of Air America.
And, in weather... MYERS: Carol, it looks pretty good across the country this morning, although we do have rain across the Northeast. If you are in the Northeast Corridor -- let's call it New England all the way through New York City and even down to Philadelphia -- it is going to be a slow ride to work or even maybe a slow plane ride if you're trying to get out of the city.
We'll talk about that in a little bit.
COSTELLO: All right, thank you, Chad.
Let's see if that OPEC meeting is affecting the overseas financial markets.
For that, we head live to London and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.
Well, the markets are keeping a close eye on the gathering of OPEC. At this point, the assumption is that they will go ahead with the cut. The only question is whether they'll reach some sort of compromise whereas they'll only actually have the cut if the price of oil drops, because Kuwait and the UAE are holdouts in terms of wanting the cut.
Let's go to the big boards right now. In the main markets, the London FTSE is flat. But the DAX in Frankfurt is up a half percent. CAC in Paris having even a better day, up three quarters of one percent. And Zurich's SMI is up about a third of one percent.
In the currency market, if you have friends traveling in Europe, the euro is about 122 to the dollar right now. And if they're in London, sterling is at 183.44 to the dollar. Coming to Europe these days is expensive for Americans.
The yen below the 104 level, at 103.95.
And in oil stocks right now, you can see B.P. is up better than one percent, ahead of the OPEC decision. Shell, though, is down about two and a half percent.
And finally, EMI, the world's third largest music company, up seven percent. And here's why. They are cutting 1,500 jobs. And get this, Carol, they're axing a fifth of the artists that they've signed up, a fifth.
COSTELLO: You're kidding? BENJAMIN: Basically they want to improve their bottom line -- nope, they're going to cut them out. Boom, you're gone!
Now, before people go oh my gosh, Nora Jones, Cold Play, Radio Head, Rolling Stones -- I don't think they're cutting those people. I think they're quite safe. They sell a lot of records. Just the artists, you know, who aren't doing too well...
COSTELLO: You know... BENJAMIN: They're out the door, all right?
COSTELLO: That's sad, in a way.
Todd Benjamin, many thanks, live from London.
And, you know, Chad, that is sad.
MYERS: Yes.
COSTELLO: Because, you know, they're keeping the big money makers, but they're getting rid, they're getting rid of maybe new artists that could bring new...
MYERS: New artists, yes.
COSTELLO: ... music to our radio airwaves and such.
MYERS: I know. And that's what I do on the weekends. I go listen to new bands that I've never heard of before, because, you know, there's just so much great talent out there, so.
COSTELLO: Absolutely.
MYERS: Anyway...
COSTELLO: Coming up on DAYBREAK, an embattled pop star on Capitol Hill. Why Michael Jackson is meeting with one member of Congress.
And find out why a torrid T-shirt has some chamber of commerce members in one North Carolina community upset.
You stay tuned.
(COMMERCIAL BREAK)
COSTELLO: And Welcome back to DAYBREAK.
It's 5:25 Eastern time.
You know, we were talking about Michael Jackson just a little bit ago?
MYERS: Yes.
COSTELLO: Because he's on Capitol Hill today.
MYERS: He went to Capitol Hill.
COSTELLO: Yes, he did.
MYERS: And, you know, people were saying all about this, you know, I don't want to talk to him because I don't want to be taking pictures taking with me. But there was really a great little quote yesterday, he is innocent until proven guilty and that's just the way it is because that's the way our law is. And that was by Mr. Fattah. COSTELLO: That was by Representative Chaka Fattah. He's a Democrat from Pennsylvania. He met with Michael Jackson. Michael Jackson was actually talking to him about battling AIDS in Africa.
MYERS: Yes.
COSTELLO: So he's going to talk to more members of the Congressional Black Caucus today. And as you said...
MYERS: And will get an award, too, right? Won't he get an award?
COSTELLO: Not from the Congressional Black Caucus.
MYERS: He's going to get an award -- no, no, no, from the Association of African Ambassadors for his efforts against AIDS in Africa.
COSTELLO: So he's on...
MYERS: Yes.
COSTELLO: ... while the grand jury is convening out in California to decide whether there's enough evidence to send his molestation case to trial.
MYERS: That's correct.
COSTELLO: All right.
MYERS: You know, I heard you talking about the gas prices all a little bit ago. And there's two things that I'd like you to do today. I want you to check the tire pressure on your car and I want you to change your air filter, because you could save so much gas by having a clean air filter and getting those tires pumped up. So many cars lose just a little bit of air in the winter in their tires. And if your tires are, let's say, 24, 25, rather than the 32 or whatever it is, you're wasting at least one or two miles per gallon every day.
COSTELLO: I will do that right after work.
MYERS: All right. Now don't...
COSTELLO: And you're going to come with me to do it.
MYERS: Don't over inflate them. You'll find the -- how much you should put either in your owner's manual or in the fuel filler door or in the door handles.
COSTELLO: OK. I will look, I promise.
MYERS: OK.
COSTELLO: Thank you, Chad.
MYERS: You're welcome. COSTELLO: Time for our DAYBREAK Eye-Opener now.
And we start with the T-shirt that has business leaders up in arms. In Highpoint, North Carolina, civic leaders want production stopped on a controversial T-shirt which they say is offending NAACP members. The chamber of commerce says the county commissioner is behind the shirts, but he denies that.
In Kansas, hundreds of thousands of criminal records now available online for anyone to access. The information dates all the way back to the arrests made in 1939. The state says the database will speed up the requests for public information and make background checks a lot easier.
Well known attorney Gloria Allred has taken up the case of five women who say they were secretly videotaped in various forms of undress. The alleged tapings took place while the women were applying for jobs at a Los Angeles area Hooters restaurant. The women filed a civil suit seeking an unspecified amount in damages.
And here's what's all new in the next 30 minutes.
Can you believe it? A drink a day may help keep the doctor away. But there's a catch.
And a meeting of the minds in Germany -- how national leaders plan to drum up money and support to bolster post-war Afghanistan.
And could Iraq still be hiding weapons of mass destruction? In an exclusive interview, the CIA's new weapons hunter gives us some inside information.
This is DAYBREAK for Wednesday.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN CORRESPONDENT: When consumers think of hardware stores, they normally think of the giant warehouse stores of Lowe's and Home Depot. Yet there is also a smaller competitor, Ace Hardware. Despite trailing Home Depot and Lowe's in revenues, Ace has more stores than both superstores combined, with over 5,000 locations. And Ace is also nailing down record yearly profits, recently surpassing $100 million for the very first time.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
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Aired March 31, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: More deadly attacks on Americans and Iraqis. In two minutes, we take you live to Baghdad.
Good morning to you.
From the CNN global headquarters in Atlanta, this is DAYBREAK for Wednesday, March 31st.
I'm Carol Costello.
Here are the latest headlines this hour
Violence flares around Falluja. Separate attacks today. In one, civilian cars are attacked and burned. Eight people killed. Plus five U.S. military personnel killed by a roadside bomb.
With gas prices at a record level in the United States, OPEC ministers meet today. They are expected to approve a planned cut in the production of crude oil.
Ante up for Afghanistan -- donor nations meet in Berlin today, with the Afghans hoping to get $4 billion to help rebuild their country.
And two and a half years after 9/11, an EPA group holds its first meeting on environmental issues and health risks for workers and residents.
Up to the forecast center now and Chad for a first look at the weather today -- good morning.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: A busy day and a bloody one for insurgents in Iraq, as both U.S. military personnel and non-Iraqi civilians come under attack.
Let's head live to Baghdad now and CNN's Jim Clancy.
He has more details for us -- hello, Jim.
JIM CLANCY, CNN CORRESPONDENT: Carol, this was a day that started out with bad news for the coalition and that news only got worse. The U.S. military now confirms that five of its troops were killed when a bomb planted in a roadway exploded as their convoy was passing over it. We do not know what branch of services these five were with. The U.S. military only confirming their deaths now.
This was west of Baghdad, near Falluja.
Meantime, inside Falluja, disturbing videotape of another attack has come forward. This attack occurred inside the city of Falluja, which, of course, is an epicenter of anti-coalition violence. It appears that at least four people were killed. Their cars were then set alight and demonstrators came out to celebrate and also to hurl stones and chunks of concrete, venting their range against the occupation.
Now, the details, the identities of those that were inside the two vehicles are not known. A CNN source in Falluja tells us that those vehicles were tracked coming out of a nearby U.S. military base. They are vehicles, SUVs of a type that is used by the Civilian Provisional Authority and by many others, including journalists. We say that because some of those inside the cars were seen to be wearing bullet-proof vests, which are common among journalists; also among some CPA authorities and security men, private security men that have been hired to protect civilians working with the coalition in Iraq.
Another incident, this one occurring north of Baghdad in the town of Ba'qubah. An apparent IED or improvised explosive device detonated while some civilians were passing in a vehicle. It was reported by the police there in Ba'qubah to CNN that seven people were injured in that blast, although their wounds were not serious. They were treated at a local hospital and then released.
So that gives you an idea of what kind of a day it has shaped up to be in Iraq. And it is barely half over -- back to you, Carol.
COSTELLO: Jim Clancy live in Baghdad this morning.
Well, the White House says the sooner the better. It is now agreeing to allow National Security Advisor Condoleezza Rice to testify in public and under oath before the 9/11 panel. White House officials are hoping to schedule that appearance for next week.
Here's CNN's John King on how substance trumps politics.
(BEGIN VIDEOTAPE)
KING (voice-over): The president's dramatic turnaround came as perceptions mounted that the White House had something to hide.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I consider it necessary to gaining a complete picture of the months and years that preceded the murder of our fellow citizens on September the 11th, 2001.
KING: After months of saying no, National Security Adviser Condoleezza Rice will now testify before the 9/11 commission in public and under oath. BUSH: So that the public record is full and accurate.
KING: The deal clears the way for a high stakes rebuttal, one of the president's closest advisers taking issue with former deputy Richard Clarke and his explosive allegation the president and Rice ignored warnings al Qaeda was poised to strike.
THOMAS KEAN, 9/11 COMMISSION CHAIRMAN: We've got to try and clear up those discrepancies as best we can.
KING: Democrats can no longer claim stonewalling by the White House.
SEN. EDWARD KENNEDY (D), MASSACHUSETTS: Now the White House bowed to the inevitable and they conceded to the obvious.
KING: And Republicans are counting on Rice to supplant Clarke as the commission's star witness.
UNIDENTIFIED MALE: She will have the opportunity to come forward with what I know will be a very powerful testimony and one that will set the record straight.
KING: The White House also is granting more access to the president and vice president.
They had offered meetings only with the commission chairman and vice chairman but now an invitation for a joint meeting with the full 9/11 commission where the president and vice president will answer any and all questions, though in private and not under oath in their case.
White House counsel Alberto Gonzales told the commission "the president recognizes the truly unique and extraordinary circumstances of helping the 9/11 panel investigate the attacks."
To seal the deal, the commission agreed 9/11 was such a unique event that Rice's testimony should not be considered a precedent for having senior White House officials testify before Congress or other commissions created by Congress. The commission also agreed Rice is the only White House official who will be asked to testify publicly.
(END VIDEOTAPE)
COSTELLO: And we want to fill you in a bit on the background of Condoleezza Rice. She became national security adviser on January 22, 2001. She was a member of the National Security Council under the first President Bush, between 1989 and 1991. And Rice served as special assistant to the director of the joint chiefs of staff in the Reagan administration in 1986. And she first met President Bush in 1995 while she was visiting his father in Texas.
More on the White House reversal coming up at the bottom of the hour, when Judlyne Lilly of Washington's WTOP News Radio will join us live.
And coming up in the 8:00 a.m. Eastern hour of CNN's "American Morning," Thomas Keene, chairman of the 9/11 Commission, will have more reaction to Rice appearing before the panel.
White House officials and many of us will be watching developments at today's OPEC meeting in Vienna. A planned production cut could send gas prices in the U.S. even higher than they currently are.
Live now to CNN's Diana Muriel in London -- good morning, Diana.
What will the OPEC ministers do?
DIANA MURIEL, CNN CORRESPONDENT: Well, it seems that for some, at least, they think it's a foregone conclusion. OPEC ministers have been gathering in Vienna for this meeting. They made a decision back in February at their meeting in Algiers that they would, indeed, cut oil production by a million barrels per day at the beginning of April and a further million barrels per day by the end of the month.
Now, there's some pressure from some of the OPEC ministers, Kuwait amongst them, that they should defer those cuts until the oil price drops. The oil price, of course, is nudging $40 a barrel. It's jumped by $0.80 in the New York price, light sweet crude for May delivery trading at $36.25, nudging 13 year highs that were seen earlier this month.
Now, if they do, indeed, decide to cut that production, as they have said, then the effect won't really be felt in the United States until about six weeks time, once the contracts have expired and the new contracts are coming in with that production cut factored in.
The OPEC has said that speculation in the market has pushed the oil price higher. They blame the poor performance of stock markets, saying that hedge funds and pension funds and other speculators have come into the market to buy commodities and they're focused on oil. That's pushed the price higher. Others say that's not the reason why the oil price has jumped. They say it's because of demand, that the demand for oil in the world, particularly in the United States, is much higher than it's been in the past.
All of this, of course, is factoring in for consumers, who are paying much higher oil prices at the pump -- Carol.
COSTELLO: You know, Diana, it's really funny, I was looking at OPEC's Web site. It's very defensive about being the scapegoat in rising gas prices. It actually blames taxation on gas as the primary reason that gas prices are so high, not only in the United States, but around the world.
MURIEL: Well, indeed, and the British consumers are only too well aware of that. They pay some of the highest pump prices in the world and 80 percent of the price is tax taken by the British government. Indeed, Europeans pay an average price per gallon of $5. That compares to the American, the average American price, which currently stands at about $1.74, 1 3/4 dollars. So that's a very big difference. And a lot of that, in terms of the European prices, is, of course, tax. But demand has been extremely high, say some of the analysts, much higher than the statistics reflect. We are going to see now a drop in demand. This is a seasonal drop. We've been through the winter months when there's a very large demand for oil. We haven't yet hit the summer driving season in the United States, where, again, demand peaks.
But so we should see a fall in demand and that will mean, according to the old, the old economic model, a fall in prices. And that would be a very welcome relief to consumers all around the world -- Carol.
COSTELLO: You're not kidding.
Diana Muriel live from London this morning.
OPEC's decision may have more of a symbolic effect than anything else on drivers in this country. But make no mistake about it -- the cost of gas is fueling debate on the campaign trail.
CNN's Kelly Wallace has more for you on that.
(BEGIN VIDEOTAPE)
WALLACE (voice-over): John Kerry, hoping to get political mileage out of sky-rocketing gas prices, makes an unscheduled stop in San Diego, where a gallon of unleaded goes for $2. 15. In his speech, he charges the Bush team has done nothing to bring gas prices down.
KERRY: If the gas prices keep rising at the rate they're going now, Dick Cheney and George Bush are going to have to carpool to work.
WALLACE: But the Bush-Cheney reelection campaign fired the opening salvo in the debate with this new ad now running nationwide, accusing the senator from Massachusetts of supporting higher gasoline taxes on 11 separate occasions.
UNIDENTIFIED MALE: Some people have wacky ideas, like taxing gasoline more so people drive less. That's John Kerry. He's supported a 50-cent a gallon gas tax.
WALLACE: And this from the president himself during a visit to the battleground state of Wisconsin.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There are some in the other party in Washington who would like to raise gas taxes. I think it would be wrong. I think it would be damaging to the economy, not positive to the economy.
WALLACE: How potent is the issue? A look at a couple of the key battleground states, Ohio, Missouri and Nevada, show gas prices are close to or above the current national average of $1. 75 a gallon. And in a new CNN-USA Today-Gallup poll, 69 percent of Americans said that rising gas prices were either a crisis or a major problem.
Kerry said as president he would put more pressure on OPEC to increase oil production and would temporarily stop sending hundreds of thousands of barrels of oil every day into the United States' emergency stockpile known as the strategic petroleum reserve.
KERRY: We should stop diverting that so the supply to the economy and to the country is higher, which brings price down.
WALLACE: But the Bush-Cheney team said four years ago Kerry said releasing oil from the strategic reserve would have a negligible affect on prices because it would take months for the oil to goat to the market.
(END VIDEOTAPE)
COSTELLO: A dangerous fireball tops our look at some of the news across America this Wednesday.
Workers were evacuated, nearby residents told to stay indoors after an explosion at a Texas refinery, oil refinery. The warnings were lifted after a few hours, when the fire was brought under control. It's unknown what caused this explosion. No injuries reported. I believe this was in Houston.
New allegations of sexual assault at the University of Colorado. An official attending a panel on football recruiting practices says two more women say they were raped by football players. Panel members say under age recruits had access to alcohol, as well.
The Justice Department is defending a Muslim girl's right to wear a head scarf in class. Parents of the sixth grader in Oklahoma sued the school district for suspending her. School officials say the head scarf violates the dress code. Federal attorneys claim the girl's civil rights are being violated.
Less than an hour from now, British Prime Minister Tony Blair is likely to face some tough questions from law makers about a suspected terror plot. Police are still sorting through the evidence following raids that turned up eight suspects, along with a half a ton of fertilizer, ammonium nitrate, the key ingredient of the Oklahoma City bombing.
On to London now and our Matthew Chance.
Bring us up to date -- Matthew.
MATTHEW CHANCE, CNN CORRESPONDENT: Carol, thank you.
And British anti-terrorism police still questioning those eight men you mentioned there suspected of being involved in this bomb plot, which was uncovered in what's been described as one of the biggest ever anti-terrorism operations in the United Kingdom. The arrests took place during dawn raids across the southeast of England, as detectives seized, as you mentioned, as well, half a ton of fertilizer, ammonium nitrate, which could be used in combination with other chemicals to make extremely powerful explosive material.
Now, it's not been officially confirmed, but it's believed the eight individuals are being held at a high security police station at Paddington Green here in London, where they could be held for up to two weeks under this country's tough anti-terrorism laws.
Security sources saying that the raids followed infiltrations of suspected extremist Islamic groups across the United Kingdom, who they believed were planning to carry out some kind of bomb attack, not against any political or military target, but against the British public here in the United Kingdom mainland -- Carol.
COSTELLO: Matthew Chance reporting live from London.
The search goes on. Iraq's new chief weapons hunter says he has new information and a new strategy for flushing out Saddam's missing WMDs. That's new at 5:30.
Also, the gloves come off as the mikes come on and Air America debuts.
Some wannabe Hooters girls get some high powered legal aid.
And forget that apple, a drink a day may be the prescription for good health.
This is DAYBREAK for Wednesday, March 31st.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It's 5:18 Eastern time.
Here's what's all new this morning.
Violence in Iraq against civilians and Americans. Coalition officials say five U.S. military personnel were killed in a roadside bombing near Falluja.
It's already passed in the Georgia State Senate. Now a constitutional amendment to ban gay marriage is headed for the House for a vote, probably today. If that passes, voters will weigh in this fall.
In money news, your next meal on a plane may be one you buy. "USA Today" reports airline catering companies are joining forces with brand name restaurants to sell food on flights.
In sports, a knee injury will keep Philadelphia 76er Alan Iverson on the bench for the rest of the season. Can you believe it? He's still set to play for the U.S. at the Athens Olympics in August, though.
In culture, it is the launch of the liberals on the airwaves. Comedian Al Franken is among those taking to the microphone for today's debut of Air America.
And, in weather... MYERS: Carol, it looks pretty good across the country this morning, although we do have rain across the Northeast. If you are in the Northeast Corridor -- let's call it New England all the way through New York City and even down to Philadelphia -- it is going to be a slow ride to work or even maybe a slow plane ride if you're trying to get out of the city.
We'll talk about that in a little bit.
COSTELLO: All right, thank you, Chad.
Let's see if that OPEC meeting is affecting the overseas financial markets.
For that, we head live to London and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.
Well, the markets are keeping a close eye on the gathering of OPEC. At this point, the assumption is that they will go ahead with the cut. The only question is whether they'll reach some sort of compromise whereas they'll only actually have the cut if the price of oil drops, because Kuwait and the UAE are holdouts in terms of wanting the cut.
Let's go to the big boards right now. In the main markets, the London FTSE is flat. But the DAX in Frankfurt is up a half percent. CAC in Paris having even a better day, up three quarters of one percent. And Zurich's SMI is up about a third of one percent.
In the currency market, if you have friends traveling in Europe, the euro is about 122 to the dollar right now. And if they're in London, sterling is at 183.44 to the dollar. Coming to Europe these days is expensive for Americans.
The yen below the 104 level, at 103.95.
And in oil stocks right now, you can see B.P. is up better than one percent, ahead of the OPEC decision. Shell, though, is down about two and a half percent.
And finally, EMI, the world's third largest music company, up seven percent. And here's why. They are cutting 1,500 jobs. And get this, Carol, they're axing a fifth of the artists that they've signed up, a fifth.
COSTELLO: You're kidding? BENJAMIN: Basically they want to improve their bottom line -- nope, they're going to cut them out. Boom, you're gone!
Now, before people go oh my gosh, Nora Jones, Cold Play, Radio Head, Rolling Stones -- I don't think they're cutting those people. I think they're quite safe. They sell a lot of records. Just the artists, you know, who aren't doing too well...
COSTELLO: You know... BENJAMIN: They're out the door, all right?
COSTELLO: That's sad, in a way.
Todd Benjamin, many thanks, live from London.
And, you know, Chad, that is sad.
MYERS: Yes.
COSTELLO: Because, you know, they're keeping the big money makers, but they're getting rid, they're getting rid of maybe new artists that could bring new...
MYERS: New artists, yes.
COSTELLO: ... music to our radio airwaves and such.
MYERS: I know. And that's what I do on the weekends. I go listen to new bands that I've never heard of before, because, you know, there's just so much great talent out there, so.
COSTELLO: Absolutely.
MYERS: Anyway...
COSTELLO: Coming up on DAYBREAK, an embattled pop star on Capitol Hill. Why Michael Jackson is meeting with one member of Congress.
And find out why a torrid T-shirt has some chamber of commerce members in one North Carolina community upset.
You stay tuned.
(COMMERCIAL BREAK)
COSTELLO: And Welcome back to DAYBREAK.
It's 5:25 Eastern time.
You know, we were talking about Michael Jackson just a little bit ago?
MYERS: Yes.
COSTELLO: Because he's on Capitol Hill today.
MYERS: He went to Capitol Hill.
COSTELLO: Yes, he did.
MYERS: And, you know, people were saying all about this, you know, I don't want to talk to him because I don't want to be taking pictures taking with me. But there was really a great little quote yesterday, he is innocent until proven guilty and that's just the way it is because that's the way our law is. And that was by Mr. Fattah. COSTELLO: That was by Representative Chaka Fattah. He's a Democrat from Pennsylvania. He met with Michael Jackson. Michael Jackson was actually talking to him about battling AIDS in Africa.
MYERS: Yes.
COSTELLO: So he's going to talk to more members of the Congressional Black Caucus today. And as you said...
MYERS: And will get an award, too, right? Won't he get an award?
COSTELLO: Not from the Congressional Black Caucus.
MYERS: He's going to get an award -- no, no, no, from the Association of African Ambassadors for his efforts against AIDS in Africa.
COSTELLO: So he's on...
MYERS: Yes.
COSTELLO: ... while the grand jury is convening out in California to decide whether there's enough evidence to send his molestation case to trial.
MYERS: That's correct.
COSTELLO: All right.
MYERS: You know, I heard you talking about the gas prices all a little bit ago. And there's two things that I'd like you to do today. I want you to check the tire pressure on your car and I want you to change your air filter, because you could save so much gas by having a clean air filter and getting those tires pumped up. So many cars lose just a little bit of air in the winter in their tires. And if your tires are, let's say, 24, 25, rather than the 32 or whatever it is, you're wasting at least one or two miles per gallon every day.
COSTELLO: I will do that right after work.
MYERS: All right. Now don't...
COSTELLO: And you're going to come with me to do it.
MYERS: Don't over inflate them. You'll find the -- how much you should put either in your owner's manual or in the fuel filler door or in the door handles.
COSTELLO: OK. I will look, I promise.
MYERS: OK.
COSTELLO: Thank you, Chad.
MYERS: You're welcome. COSTELLO: Time for our DAYBREAK Eye-Opener now.
And we start with the T-shirt that has business leaders up in arms. In Highpoint, North Carolina, civic leaders want production stopped on a controversial T-shirt which they say is offending NAACP members. The chamber of commerce says the county commissioner is behind the shirts, but he denies that.
In Kansas, hundreds of thousands of criminal records now available online for anyone to access. The information dates all the way back to the arrests made in 1939. The state says the database will speed up the requests for public information and make background checks a lot easier.
Well known attorney Gloria Allred has taken up the case of five women who say they were secretly videotaped in various forms of undress. The alleged tapings took place while the women were applying for jobs at a Los Angeles area Hooters restaurant. The women filed a civil suit seeking an unspecified amount in damages.
And here's what's all new in the next 30 minutes.
Can you believe it? A drink a day may help keep the doctor away. But there's a catch.
And a meeting of the minds in Germany -- how national leaders plan to drum up money and support to bolster post-war Afghanistan.
And could Iraq still be hiding weapons of mass destruction? In an exclusive interview, the CIA's new weapons hunter gives us some inside information.
This is DAYBREAK for Wednesday.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN CORRESPONDENT: When consumers think of hardware stores, they normally think of the giant warehouse stores of Lowe's and Home Depot. Yet there is also a smaller competitor, Ace Hardware. Despite trailing Home Depot and Lowe's in revenues, Ace has more stores than both superstores combined, with over 5,000 locations. And Ace is also nailing down record yearly profits, recently surpassing $100 million for the very first time.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
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