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CNN Live At Daybreak

A Suicide Bomb in Baghdad Kills Four People; Secretary of Defense Donald Rumsfeld's Response to Iraqi Prisoner Abuse Scandal

Aired May 06, 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: New this morning, a suicide bomber strikes at the heart of the U.S. coalition in Baghdad.
It is Thursday, May 6.

This is DAYBREAK.

And good morning to you.

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

Here are the latest headlines right now.

Flames and thick smoke rise from the scene of today's car bombing near Baghdad's green zone. A U.S. soldier and six Iraqis were killed. We're going to take you live to Baghdad for a full report in 60 seconds.

President Bush sends a message to the Middle East in his meeting today with Jordan's King Abdullah. The president is expected to encourage Palestinians and Israelis to return to the bargaining table.

The wife of former Enron financial officer Andrew Fastow is expected to pleads guilty today to a misdemeanor charge of filing a false tax return. Lea Fastow faces up to one year in prison.

And hundreds of Southern Californians return to their homes this morning, or what's left of them, as a change in the weather slows wildfires. More than 22,000 acres have burned. At least 14 homes have been destroyed.

To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The blast in Baghdad happened just about five and a half hours ago and American military authorities say a suicide car bomber is to blame.

To Baghdad now and Ben Wedeman. BEN WEDEMAN, CNN CORRESPONDENT: A suicide car bomb went off at 7:30 a.m. local time at a checkpoint leading to the so-called green zone, where the U.S.-led coalition Provisional Authority is located. The blast killed seven people, including five Iraqis, one U.S. soldier and the suicide bomber himself. Now, 25 people were wounded, including three Iraqi policemen, plus two American soldiers. The bomb apparently contained artillery rounds, fragments of which littered the area around the blast.

Now, coalition officials say that the bomb bears all the hallmarks of al Qaeda associate Abu Musab al-Zarqawi. Now, this is the first bomb in Baghdad since 17th of March, when a blast killed seven people at the Jebelah Manor (ph), Mount Lebanon Hotel. Coalition officials said they had believed that the car bombs were coming from Fallujah and that the siege of Fallujah had stopped those cars from reaching the Iraqi capital. And, of course, now that siege has been lifted.

I'm Ben Wedeman, CNN, reporting from Baghdad.

COSTELLO: Something else new this morning. The "Washington Post" has obtained new photos showing U.S. soldiers allegedly abusing Iraqi prisoners. A picture on the front page of today's "Post" shows Private First Class Lynndie England holding a leash tied to a naked man at the Abu Ghraib Prison. England has also been identified in reports as one of the soldiers in the earlier set of pictures.

England's friends and relatives tell the "Post" the pictures must have been staged. A friend says England wouldn't pull a dog by its neck, let alone drag a human across the floor. And England's mother says her daughter told her, "I was in the wrong place at the wrong time."

President Bush says the Pentagon needs more money to carry on its work in Iraq and Afghanistan.

That tops our situation report this morning. He's asking Congress for an additional $25 billion. House Appropriations Chairman Bill Young says that is not enough.

A bipartisan group of senators is suggesting the prison where Iraqi prisoners were abused should be torn down. They say the prison is a symbol of Saddam Hussein's reign of torture and an embarrassment for the U.S. military.

A senior administration official says the president has scolded Defense Secretary Donald Rumsfeld. The president, we're told, was not happy to learn about the prisoner abuse scandal from network television.

The defense secretary is likely to face more criticism tomorrow. He goes to Capitol Hill to answer questions about the prisoner abuse scandal.

More on Rumsfeld from our senior Pentagon correspondent Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): To hear Donald Rumsfeld tell it, the Pentagon has done everything right. DONALD RUMSFELD, DEFENSE SECRETARY: It's something that the department is addressing. The system works.

MCINTYRE: In appearances on two morning news shows, Rumsfeld made no apologies for his handling of the scandal and stopped short of issuing a full apology to the Iraqi people.

On ABC, Rumsfeld said only "any American who sees the photographs has to feel apologetic." On NBC, Rumsfeld was only a little more direct. "Anyone who sees the photographs does, in fact, apologize" he said. "That apology is there to any individual who was abused."

Rumsfeld's equally reserved in characterizing how the abuse has damaged the chances for U.S. success in Iraq.

RUMSFELD: It clearly is, you know, unhelpful in a fundamental way.

MCINTYRE: But Rumsfeld can expect to have to provide fuller answers Friday when he appears for a demand performance before a hastily arranged session of the Senate Armed Services Committee.

SEN. SAXBY CHAMBLISS (R), ARMED SERVICES COMMITTEE: He's going to be grilled pretty good about what happened, how it happened and how far up the chain it looks like it went.

MCINTYRE: Rumsfeld was blasted in lead editorials in both "The New York Times" and "The Washington Post." "The Times" criticized Rumsfeld for clinging to "euphemisms for what any reasonable person would view as torture." "The Post" accused Rumsfeld of "arrogant disregard for the protections of the Geneva Conventions" which is said was "an invitation to abuses.

(END VIDEOTAPE)

COSTELLO: President Bush's job approval rating is dropping. The latest Gallup poll shows the president with a 49 percent approval rating. That ties his lowest mark in the Gallup poll. When asked how the president is handling the situation in Iraq, 42 percent of respondents say they do approve; 55 percent disapprove. The poll has a sampling error of plus or minus three percentage points.

Thomas Hamill could be heading home to Macon, Mississippi by tomorrow. That's the word from a hospital spokeswoman in Germany. Hamill is being treated for a gunshot wound. He was a hostage in Iraq for three weeks, until he escaped last Sunday.

We're going to take you live to Landstuhl, Germany in the next hour of DAYBREAK.

Back in this country, the defense opens its case this morning in the Terry Nichols murder trial. The lawyers tying to save Nichols' life will call as many as 200 witnesses, trying to prove that someone else helped Timothy McVeigh bomb the Oklahoma City federal building.

Here's more from CNN's Susan Candiotti. (BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): Leaving behind pipe bombs and smoke grenades, the small gang of white supremacists robbed 22 banks around the Midwest.

UNIDENTIFIED MALE: Reports!

CANDIOTTI: They dubbed their gang The Aryan Republican Army and made a home video boasting about a racist revolution.

MARK HAMM, CRIMINOLOGIST: They were drunk.

CANDIOTTI: The man in the black hood is gang leader Peter Langan.

PETER LANGAN: Feather your nests.

CANDIOTTI: Brandishing fistfuls of bank loot. In the Ronald Reagan mask, the other gang leader, Richard "Wild Bill" Guthrie. At one point, Guthrie says this book is useful for blowing up bridges, old police stations and...

RICHARD "WILD BILL" GUTHRIE: Possibly federal courthouses that have to be demolished.

HAMM: This was Christmas '94 and they're talking about the potential bombing of a courthouse, a federal courthouse.

CANDIOTTI: Almost four months before the attack on the Oklahoma City federal building.

UNIDENTIFIED MALE: Holy cow!

CANDIOTTI: Nine years later, with convicted bombing conspirator Terry Nichols fighting for his life in a second trial, his lawyers would like to point a finger at the bank robbers as secret accomplices, not Nichols. Yet no eyewitness, no concrete clue has ever been found to connect the bank gang with bomber Timothy McVeigh.

HAMM: I don't believe that McVeigh was a lone wolf.

CANDIOTTI: In this book, criminologist Mark Hamm says McVeigh and the gang were in the same towns at the same time on half a dozen days.

HAMM: It would appear that there may be something more than a coincidence at play here.

UNIDENTIFIED MALE: But you still lack that one, hard, single fact to nail it down?

HAMM: There is no smoking gun.

CANDIOTTI: When Peter Langan was captured in Columbus, Ohio early in 1996 after the FBI opened fire on his white van, agents did find a half dozen blasting caps in his hideout. But they were destroyed without checking whether they could be traced back to the Oklahoma attack. The FBI says it looked hard and found no link between the bank robbers and McVeigh -- not blasting caps nor anything else.

DAN DEFENBAUGH, FBI BOMB TASK FORCE: We were dealing with facts and dealing with the evidence and we found no association.

CANDIOTTI: Langan is serving life without parole. Guthrie pleaded guilty to the bank heists and denied any involvement in Oklahoma City before he committed suicide in jail.

(on camera): The defense has a high hurdle to clear in the Terry Nichols trial. The judge has ruled his lawyers cannot bring up the bank robbery theory before the jury unless there is specific evidence of a connection to the bombing. In the judge's words, "This is a dry hole."

Susan Candiotti, CNN, McAlester, Oklahoma.

(END VIDEOTAPE)

COSTELLO: And across America this Thursday morning, ground will be broken on the Fourth of July in New York for what's called the Freedom Tower at the World Trade Center site. The glass and steel tower will have 70 floors of office and retail space topped by a 276 foot spire.

Lawyers for the University of Colorado are asking a judge to dismiss the lawsuit that sparked a scandal at the school. They say a woman who claims she was raped by football players and recruits three years ago has not shown that the university violated her rights.

No one had the winning ticket in last night's $172 million Power Ball drawing in Des Monies, so the top prize now goes to $205 million. The next drawing is on Saturday.

"Friends" will stop by your house tonight for one last visit. Joey, Monica, Chandler, Rachel, Ross and Phoebe, yes, they're saying good-bye after 10 years on the hit sitcom. The hour long conclusion airs tonight at 9:00 Eastern. Millions of you will be watching, so we want to know what you think of this. What exactly is the fascination with "Friends?" And what has this show added to the American pop culture? That's our e-mail question today. Send us your thoughts, daybreak@cnn.com, daybreak@cnn.com.

I mean remember the "Mary Tyler Moore Show?" There was some cultural significance to that show. What does "Friends" mean to our world of pop culture? Daybreak@cnn.com.

He got nailed, and I mean literally. Count 'em -- six nails in a man's head. We'll tell you how it happened and the prognosis later on DAYBREAK.

Also ahead, thousands of acres and more than a dozen homes go up in flames in California. But now firefighters are getting some big help.

And the families of 12 Iraqis killed by British troops in Iraq are seeking justice. We take you live to London for that.

Plus...

RULA AMIN, CNN CORRESPONDENT: Coming up, I'm Rula Amin.

We'll have reaction from the Arab world to President Bush's interviews on the Arabic language TV networks.

(COMMERCIAL BREAK)

COSTELLO: And welcome back to DAYBREAK.

I'm Carol Costello.

People in the Arab world have now had a full day to digest President Bush's condemnation of the Iraqi prisoner abuses. So we want to get reaction to his television interview yesterday.

So let's head live to bleb and Rula Amin -- good morning, Rula.

AMIN: Good morning, Carol.

Well, Carol, President Bush's words were not enough for the people here. Most people we spoke to wanted an apology. Many didn't buy the president's argument. They didn't believe he was sincere. They didn't believe he was serious.

However, even those few who did believe he was serious said it was not enough.

People here just don't think this was an isolated incident. Many suspect it's part of a larger pattern that's very much anti-Arab in this administration. And they see this as a proof that actually emphasized this theory for them.

Other people see that these pictures were contradictory to all that the president had been preaching about democracy, about making Iraq a model for the Arab world, a country where people's rights are respected. And although people have been very suspicious of these intentions by the president, they saw these prisoners' abuse pictures as a proof that he was not serious.

And so people wanted more. They wanted more in order to change their minds.

We also have to remember that there's a lot of deep mistrust in the American policies these days and that's why this issue has been a kind of a catalyst for people in order to criticize the United States and President Bush in particular -- Carol.

COSTELLO: Rula, what if the United States, you know, once they get to the bottom of what really happened inside that prison, what if they showed the punishment meted out on Arab television? Would that prove anything more to the people there?

AMIN: Well, I think on one hand, some people will say yes, this is what democracy is all about and the U.S. is committed to not only bringing democracy to their own country, but they're trying to apply it in Iraq.

But to tell you the truth, I think for most people, they will think that this was just a way to try to clean up the image that was badly damaged in the Arab world in Iraq and in the rest of the world by these pictures.

Most of the people we spoke to here told us they were not surprised that this was happening in Iraq. And that's why these people will need much more in order to change their minds -- Carol.

COSTELLO: Rula Amin reporting for us live from bleb this morning.

Your news, money, weather and sports.

It is 5:17 Eastern.

Here's what's all new this morning.

A U.S. soldier is killed in Iraq. You're looking at pictures just in this morning of the fiery car bombing. Five Iraqis and a suicide bomber also died in that attack.

President Bush asking Congress for $25 billion more for military operations in Iraq and Afghanistan. The chairman of the House Appropriations Committee says even $25 billion won't be enough, though.

In money news, oil prices are now at a 13-year high. This latest surge is blamed on worries about the security of the Mideast oil supply and fears about a gas shortage here in the United States this summer.

In sports, Spiderman is going out to the ball game. Ads for the new movie "Spiderman 2" will be placed on top of bases at major league ball parks next month.

In culture, there it is, Picasso's "Boy With A Pipe." Oh, that's awesome. It's broken all the records for an auctioned painting. Get this, it sold for $104 million at Sotheby's. Wow!

Chad?

MYERS: We all can split it here, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines this morning.

The European Central Bank meets today. They're talking about euro zone interest rates. Let's see how that's affecting the financial markets overseas.

For that we head live to London and Jim Boulden, who will explain further -- good morning, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Good morning, Carol.

Yes, I'll tell you, Carol, I'll owe you a Picasso if the European Central Bank actually raises rates. No one expects them to at all. In fact, they probably won't raise rates at all this year. In fact, because the markets here are so weak and because the, you know, the economies here in the euro zone are so weak, some people think there might even be a cut. It's only at two percent.

So let's just say nothing will happen here, but the bank here, the Bank of England, which is just next door to this building, is meeting right now and in about two hours they probably will raise the interest rates here in the U.K. to about 4 1/4 percent.

But let's look at your markets. It was pretty weak in Tokyo overnight. The Nikkei closed down a six week low. There wasn't much action on Wall Street, so I think some of these markets are looking at what happened in Asia.

But you see we're all firmly down here. Some of the big numbers -- Ho Chief (ph), a big company, it's a construction company that has a lot of exposure to the U.S. It came out with disappointing first quarter profits. So that's weighing down on the DAX.

We've also had -- because the oil price keeps rising -- I'll show you that -- what we have here is a lot of the airlines falling. As the oil price goes up, of course, these airlines have to pay for oil, and you'll see that they are suffering very much from that -- Carol.

So it's kind of a down day here and maybe Wall Street will pick things up later in the day -- back to you.

COSTELLO: All right, Jim Boulden, many thanks, live from London this morning.

We have news just into CNN from the International Red Cross, who now says that the agency, the organization long knew about abuses inside the Abu Ghraib Prison and had repeatedly asked the U.S. military to address those concerns.

We want to know more about this.

Let's go live now to Antonella Notari.

She's from the International Red Cross.

She's in Geneva, Switzerland this morning.

Tell us about this.

What did you see and when did you tell the U.S. military about what you saw?

ANTONELLA NOTARI, ICRC CHIEF SPOKESWOMAN: Well, I'm afraid I will disappoint you, because I won't tell you in detail what we saw and reported to the U.S. authorities. But I think it's important that people understand that we have been visiting Abu Ghraib Prison on a regular basis ever since it's been used as a place of detention for Iraqi and other nationals by the U.S. forces.

We've visited about every five to six weeks. When we visit, we speak in private with the detainees and we visit the whole facilities, discuss with the guards and other staff.

Based on our findings and based on our observations and information, we have repeatedly requested the U.S. authorities to take corrective action.

COSTELLO: Specifically, who did you talk to?

NOTARI: Well, we do speak, after every visit, to the prison commander and his staff, whoever he thinks demes to be necessary to be present. And then we report in writing. We will submit to their superiors, both to civilian and military authorities, written notes and reports on our findings and with our recommendations and calls for action.

COSTELLO: I know that you can't be specific about what you saw or what you heard from prisoners, but was what the prisoners told you serious in nature?

NOTARI: Well, it certainly was preoccupying for us, extremely concerning, and we had to call for very serious corrective actions. So I hope that indicates, of course, that we were aware of the situation and that we had acted on it.

We also think that a number of measures were taken based -- following our reports and probably based on other inquiries and reports coming from within the military.

COSTELLO: What kind of corrective action did you suggest?

NOTARI: I will not be able to go into the details, otherwise I would be speaking about the report as such.

But, of course, what we always work on is to avoid any degrading, humiliating and ill treatment of prisoners in any form. That is our prime work in any prison in the world, and we visit over 460,000 persons detained in conflict areas around the world.

COSTELLO: Did you...

NOTARI: We also looked at the health situation and other aspects of the conditions and treatment. But that is the prime objective of the ICRC, is to avoid any ill treatment of prisoners.

COSTELLO: You said there were some actions taken.

What kind of action was taken by prison officials?

NOTARI: Well, I see action that is already in the public domain. I think that it's been already commented on -- the suspension of some of the staff and other methods introduced to make sure that the prisoners are treated in accordance with the Geneva Conventions and are treated humanely. And we will continue to visit Abu Ghraib. We will continue to visit all places of detention in the hands of the coalition forces and continue to monitor the situation and we will continue to report on any findings that we make.

COSTELLO: You said that you visited the Abu Ghraib Prison, but did you visit other prisons throughout Iraq and did you see other alleged abuses taking place there?

NOTARI: Well, we did visit, of course. And we still continue to visit regularly other places where the coalition forces, including also the British forces, are detaining Iraqis and other nationals. That is our mandate. It's our role as per the Geneva Conventions.

COSTELLO: Well, did you see infractions...

NOTARI: And we will continue.

COSTELLO: Did you see infractions in those other prisons?

NOTARI: Well, I won't report on what we see in public. We will report directly to those concerned and will ask correction if it's necessary.

COSTELLO: Did you report infractions that you saw in other prisons to prison officials within Iraq?

NOTARI: I will at this stage not comment to you on any other reports that we've made. We have these discussions -- they're ongoing -- with the British and U.S. authorities, and we have a working relationship that, for us, is satisfying enough that we can continue it.

COSTELLO: A question, if you knew about infractions that were taking place in the Abu Ghraib Prison and you found that not enough was being done to address the concerns, why didn't we hear about it before now?

NOTARI: We do not report in public. We try and work and change the situation on the spot in the prisons where it happens. It doesn't mean that we are always immediately effective. But what it does mean is that there is an independent, neutral, humanitarian organization who continuously stays where it happens, who continuously follows up with prisoners. This is not something that just needs to be addressed once in a while. This is something that needs to be followed on the long-term and that is our job.

There are other ways to go about reporting on violations and abuses against prisoners. Our way is this one, and it does work.

COSTELLO: I understand that. Is what U.S. prison officials now, and U.S. military officials doing now to fix the problems in the prisons, is that enough?

NOTARI: We will go back to the prison and see how it affects the prisoners. That's the criteria for us. We will speak with the prisoners. We'll see what they have to say to us. And based on that, and based on our observation in the prisons, we will continue our work.

COSTELLO: There has been some suggestion that the Abu Ghraib Prison should be shut down or even destroyed.

Good idea? Bad idea?

NOTARI: That's not up to us to say, really.

COSTELLO: All right, Antonella Notari from the International Red Cross talking to us live from Geneva, Switzerland this morning.

We're going to take a break.

We'll be right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM "FRIENDS")

UNIDENTIFIED FEMALE: Quit flicking! Ow! You quit flicking!

UNIDENTIFIED FEMALE: You flicked me first!

UNIDENTIFIED FEMALE: Ow!

UNIDENTIFIED FEMALE: Ow!

(END VIDEO CLIP)

COSTELLO: Oh, well, the characters on "Friends" usually get along a lot better than that. Some of the characters were very close, if you know what I mean. Tonight, we say good-bye to them after 10 years. And, you know, that's all you hear about on television, the end of "Friends."

MYERS: Yes.

COSTELLO: It's amazing.

MYERS: Yes. And I've never seen one episode on time. I've always seen them in reruns, because we're working.

COSTELLO: Yes.

MYERS: I can't stay up for that. But I might stay up for this one tonight.

COSTELLO: A 30 second spot, $2 million. MYERS: I can't believe it. And NBC says they're going to be hurting a little bit when they lose this show, unless Joey kind of picks it up. Joey's going to be the "Frazier," you know, of "Friends" as he tries to make up some more ground for them so.

COSTELLO: Well, it will be interesting to see how that works out.

MYERS: Maybe they could bring back like "Different Strokes" or something.

COSTELLO: Oh, yes, I'm sure that would be great, Chad.

MYERS: Remember that? Some old shows.

COSTELLO: We'd actually like your opinion on why "Friends" is such a big deal. Is there any cultural significance to this show? Daybreak@cnn.com. Come on, send 'em in. Daybreak@cnn.com.

I think our viewers are a little sleepy this morning.

MYERS: That's OK.

COSTELLO: That's OK. We'll wait.

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

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Everything gone. It's been a bit to take in.

(END VIDEO CLIP)

COSTELLO: Blazing new trails, a scorcher out West wanes, but not before thousands of acres go up in flames. We'll have the latest for you just ahead.

And fresh violence in Iraq this morning as a suicide car bomber strikes near coalition headquarters in Baghdad. We get the latest in a live report.

And some unsettling news along the West Bank -- why millions in U.N. approved spending is making for a rocky road map. The latest live from Jerusalem ahead.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

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Aired May 6, 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: New this morning, a suicide bomber strikes at the heart of the U.S. coalition in Baghdad.
It is Thursday, May 6.

This is DAYBREAK.

And good morning to you.

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

Here are the latest headlines right now.

Flames and thick smoke rise from the scene of today's car bombing near Baghdad's green zone. A U.S. soldier and six Iraqis were killed. We're going to take you live to Baghdad for a full report in 60 seconds.

President Bush sends a message to the Middle East in his meeting today with Jordan's King Abdullah. The president is expected to encourage Palestinians and Israelis to return to the bargaining table.

The wife of former Enron financial officer Andrew Fastow is expected to pleads guilty today to a misdemeanor charge of filing a false tax return. Lea Fastow faces up to one year in prison.

And hundreds of Southern Californians return to their homes this morning, or what's left of them, as a change in the weather slows wildfires. More than 22,000 acres have burned. At least 14 homes have been destroyed.

To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The blast in Baghdad happened just about five and a half hours ago and American military authorities say a suicide car bomber is to blame.

To Baghdad now and Ben Wedeman. BEN WEDEMAN, CNN CORRESPONDENT: A suicide car bomb went off at 7:30 a.m. local time at a checkpoint leading to the so-called green zone, where the U.S.-led coalition Provisional Authority is located. The blast killed seven people, including five Iraqis, one U.S. soldier and the suicide bomber himself. Now, 25 people were wounded, including three Iraqi policemen, plus two American soldiers. The bomb apparently contained artillery rounds, fragments of which littered the area around the blast.

Now, coalition officials say that the bomb bears all the hallmarks of al Qaeda associate Abu Musab al-Zarqawi. Now, this is the first bomb in Baghdad since 17th of March, when a blast killed seven people at the Jebelah Manor (ph), Mount Lebanon Hotel. Coalition officials said they had believed that the car bombs were coming from Fallujah and that the siege of Fallujah had stopped those cars from reaching the Iraqi capital. And, of course, now that siege has been lifted.

I'm Ben Wedeman, CNN, reporting from Baghdad.

COSTELLO: Something else new this morning. The "Washington Post" has obtained new photos showing U.S. soldiers allegedly abusing Iraqi prisoners. A picture on the front page of today's "Post" shows Private First Class Lynndie England holding a leash tied to a naked man at the Abu Ghraib Prison. England has also been identified in reports as one of the soldiers in the earlier set of pictures.

England's friends and relatives tell the "Post" the pictures must have been staged. A friend says England wouldn't pull a dog by its neck, let alone drag a human across the floor. And England's mother says her daughter told her, "I was in the wrong place at the wrong time."

President Bush says the Pentagon needs more money to carry on its work in Iraq and Afghanistan.

That tops our situation report this morning. He's asking Congress for an additional $25 billion. House Appropriations Chairman Bill Young says that is not enough.

A bipartisan group of senators is suggesting the prison where Iraqi prisoners were abused should be torn down. They say the prison is a symbol of Saddam Hussein's reign of torture and an embarrassment for the U.S. military.

A senior administration official says the president has scolded Defense Secretary Donald Rumsfeld. The president, we're told, was not happy to learn about the prisoner abuse scandal from network television.

The defense secretary is likely to face more criticism tomorrow. He goes to Capitol Hill to answer questions about the prisoner abuse scandal.

More on Rumsfeld from our senior Pentagon correspondent Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): To hear Donald Rumsfeld tell it, the Pentagon has done everything right. DONALD RUMSFELD, DEFENSE SECRETARY: It's something that the department is addressing. The system works.

MCINTYRE: In appearances on two morning news shows, Rumsfeld made no apologies for his handling of the scandal and stopped short of issuing a full apology to the Iraqi people.

On ABC, Rumsfeld said only "any American who sees the photographs has to feel apologetic." On NBC, Rumsfeld was only a little more direct. "Anyone who sees the photographs does, in fact, apologize" he said. "That apology is there to any individual who was abused."

Rumsfeld's equally reserved in characterizing how the abuse has damaged the chances for U.S. success in Iraq.

RUMSFELD: It clearly is, you know, unhelpful in a fundamental way.

MCINTYRE: But Rumsfeld can expect to have to provide fuller answers Friday when he appears for a demand performance before a hastily arranged session of the Senate Armed Services Committee.

SEN. SAXBY CHAMBLISS (R), ARMED SERVICES COMMITTEE: He's going to be grilled pretty good about what happened, how it happened and how far up the chain it looks like it went.

MCINTYRE: Rumsfeld was blasted in lead editorials in both "The New York Times" and "The Washington Post." "The Times" criticized Rumsfeld for clinging to "euphemisms for what any reasonable person would view as torture." "The Post" accused Rumsfeld of "arrogant disregard for the protections of the Geneva Conventions" which is said was "an invitation to abuses.

(END VIDEOTAPE)

COSTELLO: President Bush's job approval rating is dropping. The latest Gallup poll shows the president with a 49 percent approval rating. That ties his lowest mark in the Gallup poll. When asked how the president is handling the situation in Iraq, 42 percent of respondents say they do approve; 55 percent disapprove. The poll has a sampling error of plus or minus three percentage points.

Thomas Hamill could be heading home to Macon, Mississippi by tomorrow. That's the word from a hospital spokeswoman in Germany. Hamill is being treated for a gunshot wound. He was a hostage in Iraq for three weeks, until he escaped last Sunday.

We're going to take you live to Landstuhl, Germany in the next hour of DAYBREAK.

Back in this country, the defense opens its case this morning in the Terry Nichols murder trial. The lawyers tying to save Nichols' life will call as many as 200 witnesses, trying to prove that someone else helped Timothy McVeigh bomb the Oklahoma City federal building.

Here's more from CNN's Susan Candiotti. (BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): Leaving behind pipe bombs and smoke grenades, the small gang of white supremacists robbed 22 banks around the Midwest.

UNIDENTIFIED MALE: Reports!

CANDIOTTI: They dubbed their gang The Aryan Republican Army and made a home video boasting about a racist revolution.

MARK HAMM, CRIMINOLOGIST: They were drunk.

CANDIOTTI: The man in the black hood is gang leader Peter Langan.

PETER LANGAN: Feather your nests.

CANDIOTTI: Brandishing fistfuls of bank loot. In the Ronald Reagan mask, the other gang leader, Richard "Wild Bill" Guthrie. At one point, Guthrie says this book is useful for blowing up bridges, old police stations and...

RICHARD "WILD BILL" GUTHRIE: Possibly federal courthouses that have to be demolished.

HAMM: This was Christmas '94 and they're talking about the potential bombing of a courthouse, a federal courthouse.

CANDIOTTI: Almost four months before the attack on the Oklahoma City federal building.

UNIDENTIFIED MALE: Holy cow!

CANDIOTTI: Nine years later, with convicted bombing conspirator Terry Nichols fighting for his life in a second trial, his lawyers would like to point a finger at the bank robbers as secret accomplices, not Nichols. Yet no eyewitness, no concrete clue has ever been found to connect the bank gang with bomber Timothy McVeigh.

HAMM: I don't believe that McVeigh was a lone wolf.

CANDIOTTI: In this book, criminologist Mark Hamm says McVeigh and the gang were in the same towns at the same time on half a dozen days.

HAMM: It would appear that there may be something more than a coincidence at play here.

UNIDENTIFIED MALE: But you still lack that one, hard, single fact to nail it down?

HAMM: There is no smoking gun.

CANDIOTTI: When Peter Langan was captured in Columbus, Ohio early in 1996 after the FBI opened fire on his white van, agents did find a half dozen blasting caps in his hideout. But they were destroyed without checking whether they could be traced back to the Oklahoma attack. The FBI says it looked hard and found no link between the bank robbers and McVeigh -- not blasting caps nor anything else.

DAN DEFENBAUGH, FBI BOMB TASK FORCE: We were dealing with facts and dealing with the evidence and we found no association.

CANDIOTTI: Langan is serving life without parole. Guthrie pleaded guilty to the bank heists and denied any involvement in Oklahoma City before he committed suicide in jail.

(on camera): The defense has a high hurdle to clear in the Terry Nichols trial. The judge has ruled his lawyers cannot bring up the bank robbery theory before the jury unless there is specific evidence of a connection to the bombing. In the judge's words, "This is a dry hole."

Susan Candiotti, CNN, McAlester, Oklahoma.

(END VIDEOTAPE)

COSTELLO: And across America this Thursday morning, ground will be broken on the Fourth of July in New York for what's called the Freedom Tower at the World Trade Center site. The glass and steel tower will have 70 floors of office and retail space topped by a 276 foot spire.

Lawyers for the University of Colorado are asking a judge to dismiss the lawsuit that sparked a scandal at the school. They say a woman who claims she was raped by football players and recruits three years ago has not shown that the university violated her rights.

No one had the winning ticket in last night's $172 million Power Ball drawing in Des Monies, so the top prize now goes to $205 million. The next drawing is on Saturday.

"Friends" will stop by your house tonight for one last visit. Joey, Monica, Chandler, Rachel, Ross and Phoebe, yes, they're saying good-bye after 10 years on the hit sitcom. The hour long conclusion airs tonight at 9:00 Eastern. Millions of you will be watching, so we want to know what you think of this. What exactly is the fascination with "Friends?" And what has this show added to the American pop culture? That's our e-mail question today. Send us your thoughts, daybreak@cnn.com, daybreak@cnn.com.

I mean remember the "Mary Tyler Moore Show?" There was some cultural significance to that show. What does "Friends" mean to our world of pop culture? Daybreak@cnn.com.

He got nailed, and I mean literally. Count 'em -- six nails in a man's head. We'll tell you how it happened and the prognosis later on DAYBREAK.

Also ahead, thousands of acres and more than a dozen homes go up in flames in California. But now firefighters are getting some big help.

And the families of 12 Iraqis killed by British troops in Iraq are seeking justice. We take you live to London for that.

Plus...

RULA AMIN, CNN CORRESPONDENT: Coming up, I'm Rula Amin.

We'll have reaction from the Arab world to President Bush's interviews on the Arabic language TV networks.

(COMMERCIAL BREAK)

COSTELLO: And welcome back to DAYBREAK.

I'm Carol Costello.

People in the Arab world have now had a full day to digest President Bush's condemnation of the Iraqi prisoner abuses. So we want to get reaction to his television interview yesterday.

So let's head live to bleb and Rula Amin -- good morning, Rula.

AMIN: Good morning, Carol.

Well, Carol, President Bush's words were not enough for the people here. Most people we spoke to wanted an apology. Many didn't buy the president's argument. They didn't believe he was sincere. They didn't believe he was serious.

However, even those few who did believe he was serious said it was not enough.

People here just don't think this was an isolated incident. Many suspect it's part of a larger pattern that's very much anti-Arab in this administration. And they see this as a proof that actually emphasized this theory for them.

Other people see that these pictures were contradictory to all that the president had been preaching about democracy, about making Iraq a model for the Arab world, a country where people's rights are respected. And although people have been very suspicious of these intentions by the president, they saw these prisoners' abuse pictures as a proof that he was not serious.

And so people wanted more. They wanted more in order to change their minds.

We also have to remember that there's a lot of deep mistrust in the American policies these days and that's why this issue has been a kind of a catalyst for people in order to criticize the United States and President Bush in particular -- Carol.

COSTELLO: Rula, what if the United States, you know, once they get to the bottom of what really happened inside that prison, what if they showed the punishment meted out on Arab television? Would that prove anything more to the people there?

AMIN: Well, I think on one hand, some people will say yes, this is what democracy is all about and the U.S. is committed to not only bringing democracy to their own country, but they're trying to apply it in Iraq.

But to tell you the truth, I think for most people, they will think that this was just a way to try to clean up the image that was badly damaged in the Arab world in Iraq and in the rest of the world by these pictures.

Most of the people we spoke to here told us they were not surprised that this was happening in Iraq. And that's why these people will need much more in order to change their minds -- Carol.

COSTELLO: Rula Amin reporting for us live from bleb this morning.

Your news, money, weather and sports.

It is 5:17 Eastern.

Here's what's all new this morning.

A U.S. soldier is killed in Iraq. You're looking at pictures just in this morning of the fiery car bombing. Five Iraqis and a suicide bomber also died in that attack.

President Bush asking Congress for $25 billion more for military operations in Iraq and Afghanistan. The chairman of the House Appropriations Committee says even $25 billion won't be enough, though.

In money news, oil prices are now at a 13-year high. This latest surge is blamed on worries about the security of the Mideast oil supply and fears about a gas shortage here in the United States this summer.

In sports, Spiderman is going out to the ball game. Ads for the new movie "Spiderman 2" will be placed on top of bases at major league ball parks next month.

In culture, there it is, Picasso's "Boy With A Pipe." Oh, that's awesome. It's broken all the records for an auctioned painting. Get this, it sold for $104 million at Sotheby's. Wow!

Chad?

MYERS: We all can split it here, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines this morning.

The European Central Bank meets today. They're talking about euro zone interest rates. Let's see how that's affecting the financial markets overseas.

For that we head live to London and Jim Boulden, who will explain further -- good morning, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Good morning, Carol.

Yes, I'll tell you, Carol, I'll owe you a Picasso if the European Central Bank actually raises rates. No one expects them to at all. In fact, they probably won't raise rates at all this year. In fact, because the markets here are so weak and because the, you know, the economies here in the euro zone are so weak, some people think there might even be a cut. It's only at two percent.

So let's just say nothing will happen here, but the bank here, the Bank of England, which is just next door to this building, is meeting right now and in about two hours they probably will raise the interest rates here in the U.K. to about 4 1/4 percent.

But let's look at your markets. It was pretty weak in Tokyo overnight. The Nikkei closed down a six week low. There wasn't much action on Wall Street, so I think some of these markets are looking at what happened in Asia.

But you see we're all firmly down here. Some of the big numbers -- Ho Chief (ph), a big company, it's a construction company that has a lot of exposure to the U.S. It came out with disappointing first quarter profits. So that's weighing down on the DAX.

We've also had -- because the oil price keeps rising -- I'll show you that -- what we have here is a lot of the airlines falling. As the oil price goes up, of course, these airlines have to pay for oil, and you'll see that they are suffering very much from that -- Carol.

So it's kind of a down day here and maybe Wall Street will pick things up later in the day -- back to you.

COSTELLO: All right, Jim Boulden, many thanks, live from London this morning.

We have news just into CNN from the International Red Cross, who now says that the agency, the organization long knew about abuses inside the Abu Ghraib Prison and had repeatedly asked the U.S. military to address those concerns.

We want to know more about this.

Let's go live now to Antonella Notari.

She's from the International Red Cross.

She's in Geneva, Switzerland this morning.

Tell us about this.

What did you see and when did you tell the U.S. military about what you saw?

ANTONELLA NOTARI, ICRC CHIEF SPOKESWOMAN: Well, I'm afraid I will disappoint you, because I won't tell you in detail what we saw and reported to the U.S. authorities. But I think it's important that people understand that we have been visiting Abu Ghraib Prison on a regular basis ever since it's been used as a place of detention for Iraqi and other nationals by the U.S. forces.

We've visited about every five to six weeks. When we visit, we speak in private with the detainees and we visit the whole facilities, discuss with the guards and other staff.

Based on our findings and based on our observations and information, we have repeatedly requested the U.S. authorities to take corrective action.

COSTELLO: Specifically, who did you talk to?

NOTARI: Well, we do speak, after every visit, to the prison commander and his staff, whoever he thinks demes to be necessary to be present. And then we report in writing. We will submit to their superiors, both to civilian and military authorities, written notes and reports on our findings and with our recommendations and calls for action.

COSTELLO: I know that you can't be specific about what you saw or what you heard from prisoners, but was what the prisoners told you serious in nature?

NOTARI: Well, it certainly was preoccupying for us, extremely concerning, and we had to call for very serious corrective actions. So I hope that indicates, of course, that we were aware of the situation and that we had acted on it.

We also think that a number of measures were taken based -- following our reports and probably based on other inquiries and reports coming from within the military.

COSTELLO: What kind of corrective action did you suggest?

NOTARI: I will not be able to go into the details, otherwise I would be speaking about the report as such.

But, of course, what we always work on is to avoid any degrading, humiliating and ill treatment of prisoners in any form. That is our prime work in any prison in the world, and we visit over 460,000 persons detained in conflict areas around the world.

COSTELLO: Did you...

NOTARI: We also looked at the health situation and other aspects of the conditions and treatment. But that is the prime objective of the ICRC, is to avoid any ill treatment of prisoners.

COSTELLO: You said there were some actions taken.

What kind of action was taken by prison officials?

NOTARI: Well, I see action that is already in the public domain. I think that it's been already commented on -- the suspension of some of the staff and other methods introduced to make sure that the prisoners are treated in accordance with the Geneva Conventions and are treated humanely. And we will continue to visit Abu Ghraib. We will continue to visit all places of detention in the hands of the coalition forces and continue to monitor the situation and we will continue to report on any findings that we make.

COSTELLO: You said that you visited the Abu Ghraib Prison, but did you visit other prisons throughout Iraq and did you see other alleged abuses taking place there?

NOTARI: Well, we did visit, of course. And we still continue to visit regularly other places where the coalition forces, including also the British forces, are detaining Iraqis and other nationals. That is our mandate. It's our role as per the Geneva Conventions.

COSTELLO: Well, did you see infractions...

NOTARI: And we will continue.

COSTELLO: Did you see infractions in those other prisons?

NOTARI: Well, I won't report on what we see in public. We will report directly to those concerned and will ask correction if it's necessary.

COSTELLO: Did you report infractions that you saw in other prisons to prison officials within Iraq?

NOTARI: I will at this stage not comment to you on any other reports that we've made. We have these discussions -- they're ongoing -- with the British and U.S. authorities, and we have a working relationship that, for us, is satisfying enough that we can continue it.

COSTELLO: A question, if you knew about infractions that were taking place in the Abu Ghraib Prison and you found that not enough was being done to address the concerns, why didn't we hear about it before now?

NOTARI: We do not report in public. We try and work and change the situation on the spot in the prisons where it happens. It doesn't mean that we are always immediately effective. But what it does mean is that there is an independent, neutral, humanitarian organization who continuously stays where it happens, who continuously follows up with prisoners. This is not something that just needs to be addressed once in a while. This is something that needs to be followed on the long-term and that is our job.

There are other ways to go about reporting on violations and abuses against prisoners. Our way is this one, and it does work.

COSTELLO: I understand that. Is what U.S. prison officials now, and U.S. military officials doing now to fix the problems in the prisons, is that enough?

NOTARI: We will go back to the prison and see how it affects the prisoners. That's the criteria for us. We will speak with the prisoners. We'll see what they have to say to us. And based on that, and based on our observation in the prisons, we will continue our work.

COSTELLO: There has been some suggestion that the Abu Ghraib Prison should be shut down or even destroyed.

Good idea? Bad idea?

NOTARI: That's not up to us to say, really.

COSTELLO: All right, Antonella Notari from the International Red Cross talking to us live from Geneva, Switzerland this morning.

We're going to take a break.

We'll be right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM "FRIENDS")

UNIDENTIFIED FEMALE: Quit flicking! Ow! You quit flicking!

UNIDENTIFIED FEMALE: You flicked me first!

UNIDENTIFIED FEMALE: Ow!

UNIDENTIFIED FEMALE: Ow!

(END VIDEO CLIP)

COSTELLO: Oh, well, the characters on "Friends" usually get along a lot better than that. Some of the characters were very close, if you know what I mean. Tonight, we say good-bye to them after 10 years. And, you know, that's all you hear about on television, the end of "Friends."

MYERS: Yes.

COSTELLO: It's amazing.

MYERS: Yes. And I've never seen one episode on time. I've always seen them in reruns, because we're working.

COSTELLO: Yes.

MYERS: I can't stay up for that. But I might stay up for this one tonight.

COSTELLO: A 30 second spot, $2 million. MYERS: I can't believe it. And NBC says they're going to be hurting a little bit when they lose this show, unless Joey kind of picks it up. Joey's going to be the "Frazier," you know, of "Friends" as he tries to make up some more ground for them so.

COSTELLO: Well, it will be interesting to see how that works out.

MYERS: Maybe they could bring back like "Different Strokes" or something.

COSTELLO: Oh, yes, I'm sure that would be great, Chad.

MYERS: Remember that? Some old shows.

COSTELLO: We'd actually like your opinion on why "Friends" is such a big deal. Is there any cultural significance to this show? Daybreak@cnn.com. Come on, send 'em in. Daybreak@cnn.com.

I think our viewers are a little sleepy this morning.

MYERS: That's OK.

COSTELLO: That's OK. We'll wait.

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

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Everything gone. It's been a bit to take in.

(END VIDEO CLIP)

COSTELLO: Blazing new trails, a scorcher out West wanes, but not before thousands of acres go up in flames. We'll have the latest for you just ahead.

And fresh violence in Iraq this morning as a suicide car bomber strikes near coalition headquarters in Baghdad. We get the latest in a live report.

And some unsettling news along the West Bank -- why millions in U.N. approved spending is making for a rocky road map. The latest live from Jerusalem ahead.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

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