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CNN Live At Daybreak

Shaky Truce in Fallujah; Vice President Dick Cheney in Tokyo This Morning

Aired April 12, 2004 - 06:00   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: This morning, Mississippi waits -- a small town American kidnapped and held hostage by insurgents in Iraq. Thomas Hamil just one of the many hostages from around the world we're waiting to hear from today, Monday, April 12, 2004.
And good morning to you.

From the CNN global headquarters in Atlanta, this is DAYBREAK.

I'm Carol Costello.

More on the hostage situation in Iraq in just a minute.

But first, the latest headlines for you.

Three U.S. Marines have been killed west of Baghdad. This happened overnight. The deaths cap a bloody weekend of fighting with Iraqi insurgents. Nineteen U.S. troops have died since Friday.

And you're looking at a live picture out of Baghdad. We're awaiting word from General Mark Kimmitt and Dan Senor, the spokesperson for Ambassador Bremer, as they begin to speak. And if they say anything -- well, they're coming out soon. Barbara Starr is monitoring this. If something comes out of this, of course, we'll take you to Baghdad live.

The U.S. road map to peace and Israel's plan to close settlements -- Egyptian President Hosni Mubarak looks for a link when he meets with President Bush at his Texas ranch today.

In Russia, a day of mourning for miners killed by an explosion. The death toll stands at 44, with three miners still missing and presumed dead.

And reports out of Mexico say the search for victims from a gas explosion has ended. Eight bodies have been found.

Let's talk about something good. What a way to end a losing streak. Phil Mickelson breaks an 0 for 42 skid by winning the Masters on the final hole by one stroke. Simply amazing -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Ernie Els had a great round, as well, with two eagles, making a good run for it. I'm sure the ratings on that thing are going to be phenomenal.

(WEATHER REPORT) COSTELLO: There is a tentative cease-fire in place and the Iraqi Governing Council is still trying to broker a political deal to calm tensions in Fallujah. But three more American Marines have died in the fight for Iraq. Here is the latest in our situation report this morning.

The Marines were killed in fighting around Fallujah. The total number of American troops killed over there now stands at 664.

The keeping crisis in Iraq deepens with the abduction of seven Chinese nationals. Beijing is asking Baghdad authorities to rescue the hostages. Three Japanese and two Arabs, also an American, being held. On the subject of that American contractor, Thomas Hamil, well, it's still in question this morning. His captors had vowed to kill and burn him if U.S. forces did not leave Fallujah. That deadline has now passed.

And the kidnapping of three Japanese civilians overshadowing Vice President Dick Cheney's visit to Japan this morning. Officials in Tokyo say there is still no word on the captives' fate.

All of this is happening in the midst of a shaky truce in Fallujah. We've heard of no shooting there this morning, but are they talking?

Let's head live to Baghdad to find out and Karl Penhaul -- Karl, members of the Iraqi Governing Council were talking to the Fallujah militants.

Are they still?

KARL PENHAUL, CNN CORRESPONDENT: We do understand, Carol, from senior U.S. military sources, that members of the Iraqi Governing Council have returned to Fallujah today to try and broker some kind of lasting cease-fire or lasting political solution, even, to the fighting that's been going on in Fallujah for the best part of six days. But signs really that that cease-fire is really very, very shaky.

We've heard reports on the ground this morning from both U.S. Marines, but also eyewitnesses, to say that there has been consistent exchanges of gunfire. That's the word Marines are using, consistent exchanges of gunfire. The rules of this cease-fire at the moment are basically the Marines will not fire at insurgents unless the insurgents fire at them first. But they've been saying that the insurgents have been taking up positions on rooftops, have been sauntering down streets, getting into firing positions and opening fire at will on Marine positions with machine guns, with assault rifles and even with rocket propelled grenades this morning.

The situation as it stands at the moment is that around three battalions of Marines are dug in in and around the outskirts of Fallujah and the Marines tell us that more than 2,000 Iraqi insurgents are holed up in positions inside the town.

Now, as you mentioned, three U.S. Marines killed in fighting yesterday in and around the area of Fallujah and we're also told by hospital officials in the city of Fallujah that more than 600 Iraqis have been killed in the last week in the course of that fighting.

Difficult, of course, Carol, to get any fully independent confirmation of those tolls, though we have seen pictures yesterday and again this morning of Iraqi civilians leaving Fallujah. They obviously don't have any faith in this cease-fire. They're very much in fear that new battles will break out between the insurgents and Marines -- Carol.

COSTELLO: Karl, I'm curious as to who members of the Iraqi Governing Council are talking to specifically in Fallujah.

Who's in charge there?

PENHAUL: This, indeed, has been one of the big problems there for the Iraqi Governing Council members, to find one person or a group of people that speak for everybody in that city, that speak for all those groups of insurgents. By all accounts, members of the Iraqi Governing Council that have returned say it's a mismatch of fighters. Some are former Saddam Hussein diehards. Others are foreign fighters. Others are normal citizens that have been angered by the actions of the U.S. forces in the town.

But what they do say is there's no real sign of a unified, centralized command, which is probably why groups of fighters still continue to take pot shots and attack Marine forces while this offer of a cease-fire is on the table -- Carol.

COSTELLO: Karl Penhaul live from Baghdad this morning.

As we've been telling you all morning long, there is no word from the three Japanese kidnapped in Iraq. Vice President Dick Cheney is in Tokyo this morning, promising the United States will do everything it can to be of assistance.

White House correspondent Dana Bash is traveling with the vice president.

She's now on the phone from Tokyo -- Dana, Paul Bremer has already said we don't negotiate with terrorist kidnappers.

What can the United States do?

DANA BASH, CNN CORRESPONDENT: Well, they're being very cautious, Carol, about what they say that they are doing, except to say that they are working behind-the-scenes. Officials say that they are going through various channels to try to do what they can to help the Japanese return their three civilians who are -- have been kidnapped and are obviously still hostage -- return them back home.

The broader question is, is how, certainly, how they do that. But the vice president in meetings here this morning with the Japanese prime minister said that he is going to do everything he can. And certainly wanted to give a big thank you to him for standing firm in the face of protests here in Tokyo and across Japan because they are not giving in and really calling to return and pull home the 550 troops that Japan has there. That is what the hostages are calling for in order to release them.

COSTELLO: I was just wondering, Dana, about the reception of Dick Cheney by the Japanese people.

BASH: Well, since the vice president got here, it's sort of hard to decipher between the outrage by the Japanese people over the situation in Iraq and their reception of Dick Cheney. The timing is certainly quite interesting and it certainly was a trip that the vice president had planned just as a low key trip that he wanted to use to say thank you to the Japanese people, particularly the prime minister, who has been an extraordinary ally of the president, to thank him for his support in Iraq.

So this timing certainly is not something that the White House and the vice president welcomed, but it's something that he is going to have to deal with as he makes his way through Asia. He's got a stop in China and then South Korea after that. All three countries have dealt with or are still dealing with hostages in Iraq.

COSTELLO: Tough times for Dick Cheney. But he seems to be at least spreading some goodwill.

Dana Bash on the phone live from Tokyo this morning.

President Bush says he would have moved mountains to prevent 9/11. He said those words to soldiers at Fort Hood in Texas. He was referring to that now declassified memo. President Bush received that so-called PDB a month before the 9/11 attacks at his Texas ranch.

It warned that al Qaeda was in the United States, maintained a support structure there and followed patterns consistent with preparations for hijackings, including surveillance of federal buildings in New York.

President Bush, though, says there was nothing specific enough to act on in the PDB. But Democratic Senator Bill Nelson says the document would raise enough caution flags that you'd call in the FBI, that you'd put out an all points bulletin.

Now, that PDB also mentioned some 70 FBI field investigations concerning Osama bin Laden. Now the FBI will be on the hot seat when the 9/11 Commission resumes hearings this week.

CNN's Bob Franken has a preview for you.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN CORRESPONDENT (voice-over): The matters addressed in this next set of hearings are among the most fundamental for this Commission -- how did the law enforcement and intelligence agencies there to protect the United States fail to protect the United States on September 11?

There will be some new revelations. There will be some new twists and turns.

FRANKEN: The testimony will come from those at the heart of the war on terrorism -- attorneys general present and prior; FBI directors current and past; and the CIA director, the same one for this administration and the previous one.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: If anything might have helped stop 9/11, it would have been better information about threats inside the United States, something made very difficult by structural and legal impediments that prevented the collection and sharing of information by our law enforcement and intelligence agencies.

FRANKEN: Translation -- the agencies were too tangled in bureaucracy and regulation to share information, essential information, such as a memo from an FBI agent in Arizona warning of the possibility of a large group of Osama bin Laden followers taking flight lessons in the United States. It was sent two months before the attacks and ignored.

And, information about people suspected of being terrorists evading detection in the U.S.

SEN. BOB GRAHAM (D-FL), INTELLIGENCE CHAIRMAN: All of those organizations, the Department of Justice, the FBI, the CIA have a share of the responsibility and at one point or the other in this process could have interdicted the plot.

FRANKEN (on camera): That is still being debated. But the leaders of those agencies will be given the chance to explain. There will be tough questions with no easy answers.

Bob Franken, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: You can get transcripts and analysis of the testimony, as well as the live updates from the Commission just by logging onto cnn.com. All of the information right there at your fingertips.

All right.

MYERS: Carol, good morning.

COSTELLO: Good morning.

MYERS: Guess what time it is?

COSTELLO: It's mug time.

MYERS: Time to give away a mug. And you know what? It's time to either make these questions a whole lot harder or start giving away a whole lot more mugs than one.

COSTELLO: I actually thought this was a very difficult question.

MYERS: We had 450 correct answers for that mug.

COSTELLO: Wow!

MYERS: So...

COSTELLO: You guys are awesome.

MYERS: Yes. You guys were paying attention yesterday. Which way -- oh, there it is. Hey, what does it stand for? Which one was it? There you go.

COSTELLO: Isn't that pretty?

MYERS: It comes with lipstick on this side and all. No, actually, we'll clean it up for you. The questions of the day. What does PDB stand for? Presidential daily brief or daily briefing. Name the trampoline workout Carol demonstrated. It was called urban rebounding and it was those little, that one two foot trampoline. The winner? The winner is -- drum roll please -- look at that -- on cue, Bill Meyers -- he spelled it different but he -- and not a relative, but Irmo, South Carolina. I think that's the third winner from South Carolina we've had.

COSTELLO: Really?

MYERS: You guys are up and at 'em in South Carolina. Good morning.

COSTELLO: I don't know how you pick the winners out of the 450, but you have your own special formula.

MYERS: I don't do it. I don't do it. The producers do it and it's random.

COSTELLO: Oh, Brian, you'll have to tell me later what the mathematical formula is to picking these.

MYERS: Throw a dart at the computer screen and see where it sticks.

COSTELLO: All right, thank you, Chad.

MYERS: You're welcome.

COSTELLO: Still to come on DAYBREAK, what city has the highest prices at the pump and why do gas prices keep on rising anyway?

And how a small Mississippi town is rallying for one of their own now being held hostage in Iraq.

This is DAYBREAK for April 12.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 6:15 Eastern time.

Here's what's all new this morning.

At least 19 more Americans were killed over the weekend in Iraq, including three U.S. Marines who died overnight in the Al-Anbar Province west of Baghdad.

In a speech to soldiers at Fort Hood in Texas, President Bush said he would have moved mountains to prevent terror attacks, but as there were no specific threats outlined in a presidential briefing memo he got a month before 9/11.

In money news, here's something you should know before you file your taxes this week -- the IRS has been auditing fewer visitors and more individual taxpayers. That's according to a Syracuse University study of government data.

In sports news, Phil Mickelson finally came through in the clutch. The lefty shot a final round 69 to win the Masters by one shot. Oh, was it thrilling. The win is Mickelson's first major championship victory. Yep, the monkey's off his back and the green jacket's on.

In culture, the Victoria's Secret fashion show is no more. The company announced they are putting an end to the titillating television event. How come? Why, because of the increased FCC scrutiny over television content -- Chad.

MYERS: And probably it'll be a Pay-Per-View event now.

(WEATHER REPORT)

COSTELLO: All right, those are the latest headlines.

Thank you, Chad.

Time for a little business buzz right now. Gas prices on the rise again.

Carrie Lee has more live from NASDAQ market site -- well, this isn't something we want to hear this morning.

CARRIE LEE, CNN CORRESPONDENT: I know. And it's something we talk about week in and week out lately, Carol. The national average per gallon for a regular unleaded gasoline at self-service stations, $1.79. This according to the Lindbergh Survey. This is a new record. Gasoline, on average, up two and a half cents over the past two weeks, up 31 1/2 cents since December. The most expensive city to fill up your tank, San Diego, California, $2.22 a gallon. The cheapest locale here, Tulsa, Oklahoma, $1.59.

Why have prices been going up? Well, crude oil prices around the world are on the rise. That contributes to about half of the cost for a gallon of gasoline. Also, we have increased demand -- summer driving season, warm weather picking up. And refiners switching to summer blends. Some environmental rules here to pay attention to. All of this contributing, Carol, to more dollars paying at the pump.

COSTELLO: It still hurts a lot.

LEE: It really does.

COSTELLO: A quick look at the...

LEE: Especially when you have those SUVs. You've got to fill them up.

COSTELLO: That's right.

A quick look at the futures.

LEE: Things looking a little bit bullish this morning. Could see a little bit of a higher open. On a weekly basis last week, we did see a little bit of selling. Of course, the markets were closed for Good Friday, but all the major market indices slightly lower. Profits kicking off once again this week. We'll hear from big names like Merrill Lynch, Delta, Apple. It is expected to be the best first quarter in terms of profits that we've seen in four years.

That's the latest from here -- Carol.

COSTELLO: All right, thank you.

Carrie Lee live from NASDAQ market site.

Coming up on DAYBREAK, the road to greatness. One man finally arrives while another man makes a momentous departure. The legends of the Masters later in our show.

But first, our DAYBREAK Photo of the Day. Take a look. What is it?

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Still ahead on DAYBREAK, families pray for their loved ones' safe return. We'll talk more about the new threat facing civilians in Iraq and the latest on the security situation there.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: An immigrant smuggling ring at a major international airport tops our look at stories making news across America this Monday.

Forty-two illegal immigrants have been detained by Customs agents at Newark International Airport. Four other men now under arrest, charged with immigrant smuggling. One hundred thirty illegals have been detained at Newark over the past four days. The parents of Grammy Award winner "Weird Al" Yankovic were found dead in their San Diego home. The couple, both over 80 years old, apparently died of carbon monoxide poisoning. The home filled with smoke after they started a fire in the fireplace with the flue closed.

In New Hampshire, Governor Craig Benson will sign a tough new bill into law today, making it a crime to knowingly host a party where under age drinking takes place. But the governor is unhappy that the law doesn't take effect until after this year's prom season. So he's planning on offering an amendment to change the law's timetable.

MYERS: And did you tell? Could you tell what it was? Can you figure that out?

COSTELLO: I thought it was typewriter keys.

MYERS: No, those are empty seats, Oakland A's game. And there's the one guy sitting up there way on the top. Boy, Oakland blew a nice lead. It was 4-2 going into the ninth and they lost the game 9-4 in the tenth inning.

COSTELLO: Oh!

MYERS: But Seattle gets their first win of the season. They're now 1 and 5. Oakland, the A's doing good, they're 4 and 2. Top of the lead.

COSTELLO: And Detroit, the Tigers, 5-1 baby.

MYERS: 5-1.

COSTELLO: They won in the tenth.

MYERS: That's right.

COSTELLO: It was an exciting game.

MYERS: For you.

COSTELLO: It's going to be a good season. I love Detroit.

Here's what's all new in the next half hour of DAYBREAK.

The week ahead is a busy one for the White House. We'll take a look at who testifies next before the 9/11 Commission.

And more on the man from Mississippi held hostage in Iraq. His town waits for word. We'll share more about the man behind the images.

Plus, sisters and soldiers -- one family's wartime loss and now a request for the Pentagon.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (voice-over): Pope John Paul II has reigned over the Catholic Church for the last 25 years, becoming the third longest serving pontiff in history. He's confronted communism, survived an assassination attempt and taken his message on the road, traveling tirelessly throughout the world and speaking out passionately on issues he believes in, becoming the most well traveled pope in history.

Known for a demand for discipline, he's stayed firm following the traditional Catholic stances on issues such as sexuality, divorce, abortion and the role of women in the church, prompting criticism that he's out of touch with modern life.

His reign has seen its share of change and controversy, the most recent one being the sexual abuse scandals in the United States. The 83-year-old suffers from Parkinson's, among other ailments, and though he has sometimes appeared frail and sickly, he's still speaking out and shaping the future of the catch.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

COSTELLO: Good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Thank you for joining us.

Let me bring you up to date now.

Iraq is expected to be a major topic of discussion when President Bush welcomes Egyptian President Hosni Mubarak. The two are scheduled to meet today at the president's ranch in Crawford, Texas.

Senator John Kerry kicks off his four city campus campaign tour today at the University of New Hampshire. The tour features rock bands and other celebrity endorsers. Obviously, Kerry is trying to reach out to younger voters.

The Jayson Williams manslaughter trial resumes this morning after a one week delay. The judge in the case is expected to rule on the defense motion to dismiss the case because of alleged misconduct by the prosecution.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired April 12, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: This morning, Mississippi waits -- a small town American kidnapped and held hostage by insurgents in Iraq. Thomas Hamil just one of the many hostages from around the world we're waiting to hear from today, Monday, April 12, 2004.
And good morning to you.

From the CNN global headquarters in Atlanta, this is DAYBREAK.

I'm Carol Costello.

More on the hostage situation in Iraq in just a minute.

But first, the latest headlines for you.

Three U.S. Marines have been killed west of Baghdad. This happened overnight. The deaths cap a bloody weekend of fighting with Iraqi insurgents. Nineteen U.S. troops have died since Friday.

And you're looking at a live picture out of Baghdad. We're awaiting word from General Mark Kimmitt and Dan Senor, the spokesperson for Ambassador Bremer, as they begin to speak. And if they say anything -- well, they're coming out soon. Barbara Starr is monitoring this. If something comes out of this, of course, we'll take you to Baghdad live.

The U.S. road map to peace and Israel's plan to close settlements -- Egyptian President Hosni Mubarak looks for a link when he meets with President Bush at his Texas ranch today.

In Russia, a day of mourning for miners killed by an explosion. The death toll stands at 44, with three miners still missing and presumed dead.

And reports out of Mexico say the search for victims from a gas explosion has ended. Eight bodies have been found.

Let's talk about something good. What a way to end a losing streak. Phil Mickelson breaks an 0 for 42 skid by winning the Masters on the final hole by one stroke. Simply amazing -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Ernie Els had a great round, as well, with two eagles, making a good run for it. I'm sure the ratings on that thing are going to be phenomenal.

(WEATHER REPORT) COSTELLO: There is a tentative cease-fire in place and the Iraqi Governing Council is still trying to broker a political deal to calm tensions in Fallujah. But three more American Marines have died in the fight for Iraq. Here is the latest in our situation report this morning.

The Marines were killed in fighting around Fallujah. The total number of American troops killed over there now stands at 664.

The keeping crisis in Iraq deepens with the abduction of seven Chinese nationals. Beijing is asking Baghdad authorities to rescue the hostages. Three Japanese and two Arabs, also an American, being held. On the subject of that American contractor, Thomas Hamil, well, it's still in question this morning. His captors had vowed to kill and burn him if U.S. forces did not leave Fallujah. That deadline has now passed.

And the kidnapping of three Japanese civilians overshadowing Vice President Dick Cheney's visit to Japan this morning. Officials in Tokyo say there is still no word on the captives' fate.

All of this is happening in the midst of a shaky truce in Fallujah. We've heard of no shooting there this morning, but are they talking?

Let's head live to Baghdad to find out and Karl Penhaul -- Karl, members of the Iraqi Governing Council were talking to the Fallujah militants.

Are they still?

KARL PENHAUL, CNN CORRESPONDENT: We do understand, Carol, from senior U.S. military sources, that members of the Iraqi Governing Council have returned to Fallujah today to try and broker some kind of lasting cease-fire or lasting political solution, even, to the fighting that's been going on in Fallujah for the best part of six days. But signs really that that cease-fire is really very, very shaky.

We've heard reports on the ground this morning from both U.S. Marines, but also eyewitnesses, to say that there has been consistent exchanges of gunfire. That's the word Marines are using, consistent exchanges of gunfire. The rules of this cease-fire at the moment are basically the Marines will not fire at insurgents unless the insurgents fire at them first. But they've been saying that the insurgents have been taking up positions on rooftops, have been sauntering down streets, getting into firing positions and opening fire at will on Marine positions with machine guns, with assault rifles and even with rocket propelled grenades this morning.

The situation as it stands at the moment is that around three battalions of Marines are dug in in and around the outskirts of Fallujah and the Marines tell us that more than 2,000 Iraqi insurgents are holed up in positions inside the town.

Now, as you mentioned, three U.S. Marines killed in fighting yesterday in and around the area of Fallujah and we're also told by hospital officials in the city of Fallujah that more than 600 Iraqis have been killed in the last week in the course of that fighting.

Difficult, of course, Carol, to get any fully independent confirmation of those tolls, though we have seen pictures yesterday and again this morning of Iraqi civilians leaving Fallujah. They obviously don't have any faith in this cease-fire. They're very much in fear that new battles will break out between the insurgents and Marines -- Carol.

COSTELLO: Karl, I'm curious as to who members of the Iraqi Governing Council are talking to specifically in Fallujah.

Who's in charge there?

PENHAUL: This, indeed, has been one of the big problems there for the Iraqi Governing Council members, to find one person or a group of people that speak for everybody in that city, that speak for all those groups of insurgents. By all accounts, members of the Iraqi Governing Council that have returned say it's a mismatch of fighters. Some are former Saddam Hussein diehards. Others are foreign fighters. Others are normal citizens that have been angered by the actions of the U.S. forces in the town.

But what they do say is there's no real sign of a unified, centralized command, which is probably why groups of fighters still continue to take pot shots and attack Marine forces while this offer of a cease-fire is on the table -- Carol.

COSTELLO: Karl Penhaul live from Baghdad this morning.

As we've been telling you all morning long, there is no word from the three Japanese kidnapped in Iraq. Vice President Dick Cheney is in Tokyo this morning, promising the United States will do everything it can to be of assistance.

White House correspondent Dana Bash is traveling with the vice president.

She's now on the phone from Tokyo -- Dana, Paul Bremer has already said we don't negotiate with terrorist kidnappers.

What can the United States do?

DANA BASH, CNN CORRESPONDENT: Well, they're being very cautious, Carol, about what they say that they are doing, except to say that they are working behind-the-scenes. Officials say that they are going through various channels to try to do what they can to help the Japanese return their three civilians who are -- have been kidnapped and are obviously still hostage -- return them back home.

The broader question is, is how, certainly, how they do that. But the vice president in meetings here this morning with the Japanese prime minister said that he is going to do everything he can. And certainly wanted to give a big thank you to him for standing firm in the face of protests here in Tokyo and across Japan because they are not giving in and really calling to return and pull home the 550 troops that Japan has there. That is what the hostages are calling for in order to release them.

COSTELLO: I was just wondering, Dana, about the reception of Dick Cheney by the Japanese people.

BASH: Well, since the vice president got here, it's sort of hard to decipher between the outrage by the Japanese people over the situation in Iraq and their reception of Dick Cheney. The timing is certainly quite interesting and it certainly was a trip that the vice president had planned just as a low key trip that he wanted to use to say thank you to the Japanese people, particularly the prime minister, who has been an extraordinary ally of the president, to thank him for his support in Iraq.

So this timing certainly is not something that the White House and the vice president welcomed, but it's something that he is going to have to deal with as he makes his way through Asia. He's got a stop in China and then South Korea after that. All three countries have dealt with or are still dealing with hostages in Iraq.

COSTELLO: Tough times for Dick Cheney. But he seems to be at least spreading some goodwill.

Dana Bash on the phone live from Tokyo this morning.

President Bush says he would have moved mountains to prevent 9/11. He said those words to soldiers at Fort Hood in Texas. He was referring to that now declassified memo. President Bush received that so-called PDB a month before the 9/11 attacks at his Texas ranch.

It warned that al Qaeda was in the United States, maintained a support structure there and followed patterns consistent with preparations for hijackings, including surveillance of federal buildings in New York.

President Bush, though, says there was nothing specific enough to act on in the PDB. But Democratic Senator Bill Nelson says the document would raise enough caution flags that you'd call in the FBI, that you'd put out an all points bulletin.

Now, that PDB also mentioned some 70 FBI field investigations concerning Osama bin Laden. Now the FBI will be on the hot seat when the 9/11 Commission resumes hearings this week.

CNN's Bob Franken has a preview for you.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN CORRESPONDENT (voice-over): The matters addressed in this next set of hearings are among the most fundamental for this Commission -- how did the law enforcement and intelligence agencies there to protect the United States fail to protect the United States on September 11?

There will be some new revelations. There will be some new twists and turns.

FRANKEN: The testimony will come from those at the heart of the war on terrorism -- attorneys general present and prior; FBI directors current and past; and the CIA director, the same one for this administration and the previous one.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: If anything might have helped stop 9/11, it would have been better information about threats inside the United States, something made very difficult by structural and legal impediments that prevented the collection and sharing of information by our law enforcement and intelligence agencies.

FRANKEN: Translation -- the agencies were too tangled in bureaucracy and regulation to share information, essential information, such as a memo from an FBI agent in Arizona warning of the possibility of a large group of Osama bin Laden followers taking flight lessons in the United States. It was sent two months before the attacks and ignored.

And, information about people suspected of being terrorists evading detection in the U.S.

SEN. BOB GRAHAM (D-FL), INTELLIGENCE CHAIRMAN: All of those organizations, the Department of Justice, the FBI, the CIA have a share of the responsibility and at one point or the other in this process could have interdicted the plot.

FRANKEN (on camera): That is still being debated. But the leaders of those agencies will be given the chance to explain. There will be tough questions with no easy answers.

Bob Franken, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: You can get transcripts and analysis of the testimony, as well as the live updates from the Commission just by logging onto cnn.com. All of the information right there at your fingertips.

All right.

MYERS: Carol, good morning.

COSTELLO: Good morning.

MYERS: Guess what time it is?

COSTELLO: It's mug time.

MYERS: Time to give away a mug. And you know what? It's time to either make these questions a whole lot harder or start giving away a whole lot more mugs than one.

COSTELLO: I actually thought this was a very difficult question.

MYERS: We had 450 correct answers for that mug.

COSTELLO: Wow!

MYERS: So...

COSTELLO: You guys are awesome.

MYERS: Yes. You guys were paying attention yesterday. Which way -- oh, there it is. Hey, what does it stand for? Which one was it? There you go.

COSTELLO: Isn't that pretty?

MYERS: It comes with lipstick on this side and all. No, actually, we'll clean it up for you. The questions of the day. What does PDB stand for? Presidential daily brief or daily briefing. Name the trampoline workout Carol demonstrated. It was called urban rebounding and it was those little, that one two foot trampoline. The winner? The winner is -- drum roll please -- look at that -- on cue, Bill Meyers -- he spelled it different but he -- and not a relative, but Irmo, South Carolina. I think that's the third winner from South Carolina we've had.

COSTELLO: Really?

MYERS: You guys are up and at 'em in South Carolina. Good morning.

COSTELLO: I don't know how you pick the winners out of the 450, but you have your own special formula.

MYERS: I don't do it. I don't do it. The producers do it and it's random.

COSTELLO: Oh, Brian, you'll have to tell me later what the mathematical formula is to picking these.

MYERS: Throw a dart at the computer screen and see where it sticks.

COSTELLO: All right, thank you, Chad.

MYERS: You're welcome.

COSTELLO: Still to come on DAYBREAK, what city has the highest prices at the pump and why do gas prices keep on rising anyway?

And how a small Mississippi town is rallying for one of their own now being held hostage in Iraq.

This is DAYBREAK for April 12.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 6:15 Eastern time.

Here's what's all new this morning.

At least 19 more Americans were killed over the weekend in Iraq, including three U.S. Marines who died overnight in the Al-Anbar Province west of Baghdad.

In a speech to soldiers at Fort Hood in Texas, President Bush said he would have moved mountains to prevent terror attacks, but as there were no specific threats outlined in a presidential briefing memo he got a month before 9/11.

In money news, here's something you should know before you file your taxes this week -- the IRS has been auditing fewer visitors and more individual taxpayers. That's according to a Syracuse University study of government data.

In sports news, Phil Mickelson finally came through in the clutch. The lefty shot a final round 69 to win the Masters by one shot. Oh, was it thrilling. The win is Mickelson's first major championship victory. Yep, the monkey's off his back and the green jacket's on.

In culture, the Victoria's Secret fashion show is no more. The company announced they are putting an end to the titillating television event. How come? Why, because of the increased FCC scrutiny over television content -- Chad.

MYERS: And probably it'll be a Pay-Per-View event now.

(WEATHER REPORT)

COSTELLO: All right, those are the latest headlines.

Thank you, Chad.

Time for a little business buzz right now. Gas prices on the rise again.

Carrie Lee has more live from NASDAQ market site -- well, this isn't something we want to hear this morning.

CARRIE LEE, CNN CORRESPONDENT: I know. And it's something we talk about week in and week out lately, Carol. The national average per gallon for a regular unleaded gasoline at self-service stations, $1.79. This according to the Lindbergh Survey. This is a new record. Gasoline, on average, up two and a half cents over the past two weeks, up 31 1/2 cents since December. The most expensive city to fill up your tank, San Diego, California, $2.22 a gallon. The cheapest locale here, Tulsa, Oklahoma, $1.59.

Why have prices been going up? Well, crude oil prices around the world are on the rise. That contributes to about half of the cost for a gallon of gasoline. Also, we have increased demand -- summer driving season, warm weather picking up. And refiners switching to summer blends. Some environmental rules here to pay attention to. All of this contributing, Carol, to more dollars paying at the pump.

COSTELLO: It still hurts a lot.

LEE: It really does.

COSTELLO: A quick look at the...

LEE: Especially when you have those SUVs. You've got to fill them up.

COSTELLO: That's right.

A quick look at the futures.

LEE: Things looking a little bit bullish this morning. Could see a little bit of a higher open. On a weekly basis last week, we did see a little bit of selling. Of course, the markets were closed for Good Friday, but all the major market indices slightly lower. Profits kicking off once again this week. We'll hear from big names like Merrill Lynch, Delta, Apple. It is expected to be the best first quarter in terms of profits that we've seen in four years.

That's the latest from here -- Carol.

COSTELLO: All right, thank you.

Carrie Lee live from NASDAQ market site.

Coming up on DAYBREAK, the road to greatness. One man finally arrives while another man makes a momentous departure. The legends of the Masters later in our show.

But first, our DAYBREAK Photo of the Day. Take a look. What is it?

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Still ahead on DAYBREAK, families pray for their loved ones' safe return. We'll talk more about the new threat facing civilians in Iraq and the latest on the security situation there.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: An immigrant smuggling ring at a major international airport tops our look at stories making news across America this Monday.

Forty-two illegal immigrants have been detained by Customs agents at Newark International Airport. Four other men now under arrest, charged with immigrant smuggling. One hundred thirty illegals have been detained at Newark over the past four days. The parents of Grammy Award winner "Weird Al" Yankovic were found dead in their San Diego home. The couple, both over 80 years old, apparently died of carbon monoxide poisoning. The home filled with smoke after they started a fire in the fireplace with the flue closed.

In New Hampshire, Governor Craig Benson will sign a tough new bill into law today, making it a crime to knowingly host a party where under age drinking takes place. But the governor is unhappy that the law doesn't take effect until after this year's prom season. So he's planning on offering an amendment to change the law's timetable.

MYERS: And did you tell? Could you tell what it was? Can you figure that out?

COSTELLO: I thought it was typewriter keys.

MYERS: No, those are empty seats, Oakland A's game. And there's the one guy sitting up there way on the top. Boy, Oakland blew a nice lead. It was 4-2 going into the ninth and they lost the game 9-4 in the tenth inning.

COSTELLO: Oh!

MYERS: But Seattle gets their first win of the season. They're now 1 and 5. Oakland, the A's doing good, they're 4 and 2. Top of the lead.

COSTELLO: And Detroit, the Tigers, 5-1 baby.

MYERS: 5-1.

COSTELLO: They won in the tenth.

MYERS: That's right.

COSTELLO: It was an exciting game.

MYERS: For you.

COSTELLO: It's going to be a good season. I love Detroit.

Here's what's all new in the next half hour of DAYBREAK.

The week ahead is a busy one for the White House. We'll take a look at who testifies next before the 9/11 Commission.

And more on the man from Mississippi held hostage in Iraq. His town waits for word. We'll share more about the man behind the images.

Plus, sisters and soldiers -- one family's wartime loss and now a request for the Pentagon.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (voice-over): Pope John Paul II has reigned over the Catholic Church for the last 25 years, becoming the third longest serving pontiff in history. He's confronted communism, survived an assassination attempt and taken his message on the road, traveling tirelessly throughout the world and speaking out passionately on issues he believes in, becoming the most well traveled pope in history.

Known for a demand for discipline, he's stayed firm following the traditional Catholic stances on issues such as sexuality, divorce, abortion and the role of women in the church, prompting criticism that he's out of touch with modern life.

His reign has seen its share of change and controversy, the most recent one being the sexual abuse scandals in the United States. The 83-year-old suffers from Parkinson's, among other ailments, and though he has sometimes appeared frail and sickly, he's still speaking out and shaping the future of the catch.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

COSTELLO: Good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Thank you for joining us.

Let me bring you up to date now.

Iraq is expected to be a major topic of discussion when President Bush welcomes Egyptian President Hosni Mubarak. The two are scheduled to meet today at the president's ranch in Crawford, Texas.

Senator John Kerry kicks off his four city campus campaign tour today at the University of New Hampshire. The tour features rock bands and other celebrity endorsers. Obviously, Kerry is trying to reach out to younger voters.

The Jayson Williams manslaughter trial resumes this morning after a one week delay. The judge in the case is expected to rule on the defense motion to dismiss the case because of alleged misconduct by the prosecution.

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