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CNN Live At Daybreak
Najaf Standoff; Campaign Impact; Attack Campaign Ads
Aired August 24, 2004 - 06:30 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: There has been airstrikes for hours now from U.S. helicopters, and there has been other fighting within Najaf as well near the mosque.
CLINCH: Right. And that, of course, is the question. The mosque itself, we're hearing, may not contain many of those fighters anymore. There may, of course, be some fighters in there.
The problem for the U.S. and Iraqi forces is that the warrens of streets that they have to go through to even get to the mosque are filled with snipers, filled with people with rocket-propelled grenades, a very dangerous situation.
COSTELLO: And maybe women and children in there as well.
CLINCH: So, just taking the mosque does not necessarily end this, but that's what we're watching for today.
COSTELLO: David Clinch, many thanks.
It is not enough. Let's talk politics now. It is not enough. That's what Democrats are saying about President Bush's take on attack ads. Bush is calling for an end to 527 ads, paid for by independent groups. But he didn't directly condemn the so-called Swift Boat ads, which attack John Kerry's military record.
Kerry's running mate, John Edwards, says Bush fell far short. The president spoke to reporters at his Texas ranch.
(BEGIN VIDEO CLIP)
QUESTION: When you say that you want to stop all...
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: All of them.
QUESTION: So, I mean, do...
BUSH: That means that ad and every other ad.
QUESTION: (OFF-MIKE).
BUSH: Absolutely. I don't think we ought to have 527s. I can't be more plain about it, and I hope my opponent joins me in saying, condemning these activities of the 527s. I think they're bad for the system. That's why I signed a bill, McCain-Feingold.
(END VIDEO CLIP) (BEGIN VIDEO CLIP)
SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: Today, George Bush faced his moment of truth, and he failed. He failed to condemn the specific attacks on John Kerry's military record. We didn't need to hear a politician's answer, but unfortunately that's what we got, and that's what the American people got today.
(END VIDEO CLIP)
COSTELLO: Those Swift Boat ads are obscuring other issues in campaign 2004. We're getting plenty of e-mail this morning saying enough. So enough of that for now. We're moving on to other issues.
All week long, we're doing a little RCV, review the candidate's viewpoints, prior to the Republican National Convention. This morning: defense.
(BEGIN VIDEOTAPE)
COSTELLO (voice over): In a nutshell, here goes. On missile defense, Senator John Kerry has proposed cutting $10 billion in funding and supports non-proliferation and arms control. President Bush has ordered a limited national missile defense system in place starting next month.
As for the size of the U.S. military, President Bush is not proposing any increase in troop strength. Senator Kerry wants to add 40,000 active-duty troops to decrease the current reliance on the National Guard.
Now for the program budget. Senator Kerry wants to invest in new equipment and technology and start a community defense service, but he hasn't said how much it might cost. President Bush would increase military spending by 4.2 percent to $380 billion.
(END VIDEOTAPE)
So let's delve a little deeper now. Live to Washington and our political analyst, Ron Brownstein.
Good morning -- Ron.
RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning.
COSTELLO: These are important issues. This morning the situation in Najaf is heating up. The Iraqi defense minister has given Muqtada al-Sadr's militia an ultimatum, get out of the mosque, we'll wipe you out. How might this battle affect the election?
BROWNSTEIN: Well, Carol, probably these are going to be the most important issues, I think, in the election. It's always the economy, stupid. Those things always matter, how people feel about their pocketbook, health care and so forth.
But I think there are many people on both sides who believe this election will turn, above all, on voters' assessment, their report card really, on President Bush's response to the war on terror, to the aftermath of 9/11, symbolized, I think above all, by his decision to invade Iraq.
So, I think these are issues at the top of the agenda. There are real differences between the candidates and some convergences, too.
COSTELLO: So, we know that security -- you know, as you say that, we know that security is going to be a major issue at the Republican National Convention. But we also know that the American people are upset at the escalating cost of this war. So, how does President Bush make the price tag easier for voters to swallow?
BROWNSTEIN: Well, that's a good question. And certainly the central argument of John Kerry and foreign policy, even though their positions have blurred a little bit, some of the differences in some areas, Kerry's central argument is that he would be more effective at reaching out to allies around the world and either pressure or convince them to share more of the burden financially and militarily in Iraq. That is the single most common, really, unrelenting theme that he has pursued throughout this campaign.
President Bush faces that challenge. After the series of international meetings in June, the NATO summit, the G8 meeting and so forth, he came home with a lot more sympathy but without a lot more tangible help. And I think this is an argument that John Kerry is going to press his case that President Bush has alienated too many of our traditional friends to get the help we need in Iraq.
COSTELLO: Yet many people say John Kerry hasn't really capitalized on the issue, because he's all, like, wrapped up in this Swift Boat controversy.
BROWNSTEIN: Well, and even before the Swift Boat controversy, Carol, I mean, he's been wrapped in trying to figure out where he can find a point to disagree with President Bush without seeming to open himself to more charges of flip-flopping.
Of course, John Kerry voted to authorize the use of military force back in October of 2002, but he hasn't said whether as president he himself would have gone to war. And he's argued that if he had been president he would have pursued this in a very different way, giving diplomacy and inspections more time to proceed.
So, he has had trouble articulating a clear distinction from President Bush, especially in the last four or five months as President Bush has relied more on international institutions like the U.N. and the formation of the new Iraqi government, which was John Kerry's central argument.
So, some of the differences are blurred. But, you know, electorally, that may be a secondary consideration anyway. I think that voters by and large are dividing based on their view of President Bush's decisions, with the contrast with Kerry, I think, a secondary factor for many of them.
COSTELLO: Ron Brownstein joining us live from Washington this morning. We'll see you again tomorrow. Thank you.
BROWNSTEIN: All right, thank you.
COSTELLO: Tomorrow on DAYBREAK, we take a look at where Bush and Kerry stand on homeland security issues like the Patriot Act, intel agencies and enemy combatants.
The presidential race is still a squeaker, at least in Florida. A new CNN/"USA Today"/Gallup Poll shows John Kerry and President Bush are tied at 45 percent each. This is among registered voters. Ralph Nader stands at 3 percent.
But among people who say they are likely to vote, President Bush has a slight edge, 48 percent to Kerry's 46 percent. Statistically that doesn't mean much though.
And an overwhelming 71 percent of Floridians polled say they approve of how President Bush responded to the two big storms that hit Florida.
A little turbulence in talks between US Airways and its pilots. In about three minutes, why the talks have stalled, and how it might affect you.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: The Iraqi defense minister has issued an ultimatum this morning: Get out of the Imam Ali shrine or you will be wiped out.
Our Matthew Chance is embedded with soldiers there in Najaf. He brings us up-to-date on more of what's happening there.
What is the situation there now -- Matthew?
MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT: Carol, thanks.
Well, still ferocious fighting is taking place inside Najaf itself. But in the meantime, the Iraqi defense minister, as you mentioned there, issuing a sharp ultimatum to the forces of the Mehdi militia loyal, of course, to the radical Shia cleric, Muqtada al-Sadr.
He's saying now that Iraqi forces are moving this evening, or will be moving this evening, to surround the Imam Ali shrine, one of the holiest shrines in Shia Islam. They're going to seal off the entrance points to that mosque to prevent further Mehdi Army fighters from going inside.
Then, he says, they're going to use loudspeakers to call on those supporters of Muqtada al-Sadr -- there are many hundreds of them holed up inside of that mosque -- to come out and to surrender themselves.
There are women and children amongst them. The Iraqi defense minister is saying that they are very concerned about the welfare of those people inside. There has been a lot of concern about people being held there as human shields. They're going to use loudspeakers to encourage people to come out.
But the defense minister was also stressing that if by daybreak on Wednesday morning there were still people inside, he would order Iraqi forces to storm that mosque, even though that's an immensely controversial action that has been sort of threatened over the past several weeks.
This is one of the holiest shrines in Shia Islam. The very fact that there has been fighting there threatens to provoke Shia backlash amongst the majority community in this country. That's something the Iraqi government wants to avoid.
But at the same time, they see this uprising as a very serious challenge to their authority, and they want to end it as soon as possible -- Carol.
COSTELLO: We've seen U.S. tanks there this morning, and we've seen helicopter gunships. How intense is the fighting there in Najaf now, Matthew?
CHANCE: Well, I think the fighting is sporadic. It's not ongoing. But certainly when it happens, it happens with great intensity. It's incredibly ferocious.
U.S. forces are going in alongside Iraqi troops, backed by tanks and helicopter gunships. And overnight, we've seen American warplanes dropping extremely powerful explosives on certain buildings inside Najaf, buildings known to be strongholds of the Mehdi Army.
So, the operations tend to go on for several hours and they're incredibly tense. And then afterwards kind of, you know, sporadic gunfire. Snipers are still very much active on the streets, making life for ordinary Iraqis inside Najaf extremely difficult -- Carol.
COSTELLO: Yes, I understand a lot of residents have now fled the city, and for good reason. Matthew Chance, you be careful. Thank you.
It's time for a little business buzz now. Talks break down between US Airways and its pilots. Could a chapter 11 filing be next?
Carrie Lee has more for us live from the Nasdaq Marketsite.
Good morning -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol. Not a good time for US Airways. You know, they've been negotiating with their pilots, and now the talks among with the unions regarding labor concessions have broken down.
US Airways has been asking its pilots union for $300 million in labor concessions, but the two sides were far apart on the dollar value of a new package. And they don't have any other negotiations scheduled at this time.
Now, a deal with the pilots would be the first significant step in US Airways' plan to cut costs by $1.5 billion a year, including cutting labor by a total $800 million.
But this first step is not happening, and the airline has warned that bankruptcy does loom if they're not able to reach these cost cuts by September 30. And if the company does have to file for chapter 11, this would be US Airways second bankruptcy, Carol, in two years.
So, we're watching the stock today. This news came out just before the market closed yesterday.
COSTELLO: Carrie Lee live from the Nasdaq Marketsite, thank you so much.
The battle is explosive, political ads attacking both President Bush and John Kerry's war records. Here's a look at one of those ads, the latest one.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: George Bush used his father to get into the National Guard, was grounded, and then went missing. Now he's allowing false advertising that attacks John Kerry.
(END VIDEO CLIP)
COSTELLO: You've probably seen the Swift Boat ads. That ad you just saw was paid for by MoveOn.org. It's in retaliation for the ads from the Swift Boat Veterans for Truth, a group critical of Senator John Kerry's war service.
The battle of the ads has obscured every other issue of this campaign, and they are our hot topics of the morning.
Joining us from the right, libertarian talker Neal Boortz, and from the left, talker Nancy Skinner from Chicago.
Welcome to you both.
NANCY SKINNER, LIBERALK TALK SHOW HOST: Good morning, Carol.
NEAL BOORTZ, CONSERVATIVE RADIO TALK SHOW HOST: Hey, Nancy.
SKINNER: Hi, Neal.
COSTELLO: OK, Nancy, let's start with you. When will this debate end?
SKINNER: Well, I'll tell you, Carol, I think the media here have an obligation to look at the facts. This is a Karl Rove media extravaganza. You should call this the "Rove boat veterans for Bush."
Because now the facts have come out, and there is overwhelming evidence that these guys are lying about the truth. You have every one in the boat with Kerry backing up his version. You have the only living commander of one of the boats, an editor at the "Chicago Tribune," non-partisan, for the first time coming out and backing up Kerry's story of the events. You have a vet last night said he was approached by these guys. They changed the affidavit after he told them the story.
At what point does the media have to step in and say, the truth is the overwhelming body of evidence is that Kerry was telling the truth, and this is a smear campaign like we've never seen before?
COSTELLO: Neal, I know you're itching to say something.
BOORTZ: Well, no. I mean, I've heard this. The overwhelming body of evidence, provable falsehoods, the whole thing, there are no provable falsehoods. There is no overwhelming body of evidence that what is said in the Swift Boat Veterans ad is untrue. The fact of the matter is that neither side is probably telling the whole truth here.
I find it very instructive that in both the first Purple Heart case and in the Swift Boat and the mine case on the river that it is John Kerry is the only officer, the only officer, present at either one of those incidents that says there was live fire.
So, I mean...
SKINNER: That's not true! Neal, in the military records themselves, it says these guys...
BOORTZ: That's right, Nancy.
SKINNER: ... four of these veterans own accommodations that says they were under enemy fire.
BOORTZ: John Kerry wrote those reports, Nancy.
SKINNER: No, he did not!
BOORTZ: Yes, he did.
SKINNER: John Kerry did not!
COSTELLO: Let's stop the argument right here, and just talk about the ads themselves and how they're obscuring every other issue in this campaign.
I want to read you a quote from Roy Hoffman, who is the founder of Swift Boat Veterans for Truth. He said: "It would make no difference if John Kerry were a Republican, Democrat or an Independent. Swift Boat Veterans would still be speaking the truth concerning John Kerry's military service record in Vietnam."
So, in essence, he's kind of standing up for 527s and saying they're just trying to get the truth out there, Nancy.
SKINNER: But those commercials were funded by Bob Kerry, a Republican and Bush backer. So, it's not true. Those commercials wouldn't have been on the air, because they wouldn't have had the money.
I'll tell you what: This is not about 527s. And President Bush tried to make it about 527s. He refused to come out and say, you know what? This is just dirty and low-pool. That's what he should be saying.
BOORTZ: Nancy...
SKINNER: This has nothing to do with 527s.
BOORTZ: Nancy, a question: Who funds MoveOn.org and Media Fund?
SKINNER: Well, I will tell you, yes, that that is funded by Democrats and liberals and...
BOORTZ: No, no, no, wait a minute. Isn't it George Soros?
SKINNER: But the difference is what's the truth?
BOORTZ: George Soros, a Hungarian-born international financier.
SKINNER: What's the problem (UNINTELLIGIBLE)?
BOORTZ: Well, I mean, you were very quick to mention a Houston home builder. Oh, how sinister. But a Hungarian-born international financier?
SKINNER: The difference is -- the difference is that these veterans are saying that they are not influenced by politics or special interests, when, in fact, the volunteer coordinator for the Bush, his campaign, was in the ad himself. Colonel Ken Cordier (ph) is the volunteer coordinator for the Bush campaign.
BOORTZ: That's right.
SKINNER: He appears in the ad himself.
BOORTZ: That's right. And the Bush campaign immediately removed him from any further participation...
SKINNER: And said we had nothing to do with this.
COSTELLO: OK. Let's move on to this topic: Should these 527s be banned? Because, really, both sides aren't quite telling the whole truth. So, should they be banned? And are they really harmful in the public arena?
BOORTZ: Absolutely not.
COSTELLO: Why?
BOORTZ: Because these 527s are groups of people that have a political viewpoint that they want to put forward. We are a nation of free speech. They have every right to do that. The Campaign Finance Act was obscenity. And the Supreme Court's support of that act was an atrocity. Anybody that wants to express a political viewpoint in this country ought to be able to do so, no matter what that political viewpoint is.
COSTELLO: Nancy.
SKINNER: Well, I'm going to have to agree with Neal on this one. I think that really the media has to step up to the plate and discern the facts and stop saying, well, they said this and they said that.
In this Swift Boat incident, for example, I think the facts are clear the media has to say the overwhelming...
COSTELLO: All right...
SKINNER: ... body of evidence does support the Kerry (UNINTELLIGIBLE).
COSTELLO: All right, we'll end on agreement. It's a beautiful thing.
BOORTZ: Nancy, you look great today.
SKINNER: Thanks, Neal.
BOORTZ: See, she didn't return the compliment.
COSTELLO: Nancy Skinner and Neal Boortz joining DAYBREAK this morning, thank you so much.
Your news, money, weather and sports. It is 6:47 Eastern. Here's what's all new this morning.
A new ultimatum comes amid some of the most intense fighting in Najaf. Iraq's defense minister is warning Iraqis to leave the Imam Ali shrine or they will be wiped out.
You're looking at new pictures, by the way, just in this morning from that embattled city.
The atheist who sued to get the phrase "Under God" removed from "The Pledge of Allegiance" says he will re-file his challenge; that, after the Supreme Court refused to overturn its ruling that Michael Newdow cannot represent his daughter because he lacks full custody.
In money news, another drop in oil prices. U.S. light crude fell below 46 bucks a barrel. That marks the third successive slide, but supply concerns do persist, and that's keeping prices close to historical levels.
In culture, police in Finland say hundreds of paintings confiscated from a Salvador Dali exhibition are forgeries. Police shut down the Helsinki (ph) exhibition in June. They confiscated the works supposedly by the Spanish surrealist painter and other famous artists. In sports, take a look. Oh, it looks bad, but it wasn't. Derek Jeter bruised his elbow last night in the 9th inning against the Cleveland Indians. The Yankees did go on to win 6-4, and Jeter is OK. In fact, he is expected to play tonight.
(WEATHER BREAK)
COSTELLO: Those are the latest headlines for you this morning.
From the ravages of war to a chance at Olympic victory, the Summer Games and the Iraqi soccer team, details on their next big match and a live report from Athens. This is DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: We are always interested in CNN.com, because, well, oftentimes people are more interested in different stories than we present on DAYBREAK. But this time, we're kind of...
CHAD MYERS, CNN METEOROLOGIST: Well, it's the most clicked-on news product ever, so, you know, here you go.
COSTELLO: CNN.com.
MYERS: Amber Frey.
COSTELLO: Yes, the No. 1 clicked-on story on the Web today, Amber Frey taking the stand to be cross-examined by Mark Geragos. We've been talking about all of that -- we've been talking about that all morning. And you're sure to hear more about that throughout the day on CNN and on every other network you can think of.
MYERS: The next one I liked was George Washington.
COSTELLO: Yes, he's getting a makeover.
MYERS: They're going to try to make him look different. Great.
COSTELLO: They're going to try to make him look hot.
MYERS: Yes. But here's one of the things that they're going to have to work on. Because of bone loss resulting from his losing of teeth, the shape of Washington's face probably changed dramatically over the years. Explaining that, pinpointing those changes will be difficult.
COSTELLO: Yes. Well, they're going to use new technology to examine busts that were made of him and...
MYERS: A computer-generated Washington.
COSTELLO: Yes, yes.
MYERS: Like who could even fathom that?
COSTELLO: They're going to make, like, a wax figure of him or something. But they're going to make him attractive and gentlemanly to show how hot he was as a young man to attract more visitors to Mount Vernon.
The third most clicked-on story, what was it? Tell me.
MYERS: Money, money, money, money.
COSTELLO: Money. Yes, it was.
MYERS: Those 527s.
COSTELLO: Those 527s. And we've been getting a lot of e-mail from you this morning. You do not believe, most of you anyway, that 527s should be banned.
MYERS: Right.
COSTELLO: Because it's a freedom of speech thing.
MYERS: Because of the First Amendment.
COSTELLO: Right. Although those ads make you really, really angry.
Right now, Iraq has one Olympic medal to its name. Let's move on to the Olympics now. It won the bronze in a weightlifting competition way back in 1960, but the country's soccer team is looking almost golden. Can you believe it?
MYERS: They are in the medal round.
COSTELLO: Oh, yes. Let's head live to Athens and Larry Smith.
Good morning -- Larry.
LARRY SMITH, CNN CORRESPONDENT: Good morning, and good afternoon to you from Athens.
Imagine the celebration if they win today's semifinal game versus Paraguay. Saturday night here, many Iraqis celebrated. They chanted and waved flags. And so, we'll see if they can get it down again tonight.
It their first Olympics since 1988, the Iraqi soccer team has been really one of the big stories. It was a victory for them just to get here. But now, as you mentioned, trying to get their first-ever medal. They are a couple of wins away even from getting a gold medal.
And, again, the men's soccer semifinals are tonight, and Iraq is taking on Paraguay and one of those.
Now, last night, the 400 meter men's dash, it was 20-year-old Jeremy Wariner taking gold. The Baylor student ran a personal best, 44 seconds, to become the sixth consecutive American male to win the 400. Teammates Otis Harris and Derek Brew completed the gold, silver and bronze sweep. Wariner golden in the 400. In weightlifting -- or make that, I'm sorry, in gymnastics, a bit of controversy again for Paul Hamm. The American gymnast, had to wait about 10 minutes to complete his event in the high bar as the crowd was booing because they felt there was a lower-than-perceived score for Russian gymnast Alexei Nemov, who had to come out then and calm the crowd down. He went on and performed, Hamm did, and he was near perfect himself. He takes silver. Nemov, by the way, finished just in fourth.
And one final note, the latest, I should say, on the Hamm situation regarding his gold medal in the all-around gymnastic. Federation officials now say there is nothing that they can do in South Korea's request to try to get a duplicate gold medal. This coming up after they admitted there was a scoring error in last Wednesday's competition that inadvertently gave Hamm his gold medal.
It appears now that the only way Hamm could lose his gold medal in this event is if he chooses to give it up himself, and he has said that that is something that he will not do.
That's the story right now from Athens.
Carol -- let's go back to you.
COSTELLO: All right, Larry Smith reporting live from Athens, thank you.
We're going to take a break. And in two minutes, we'll announce the DAYBREAK mug winner.
MYERS: We'll give away a coffee mug.
COSTELLO: We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: It's time to give away the mug.
MYERS: We got good questions, a lot of good answers.
According to our story yesterday, how many versions of "The Scream" exist out there? The answer is four. And that was the one, obviously, that got stolen from that, you know, museum yesterday.
And new overtime rules are created under what federal agency? And the answer is the Labor Department.
And the winner, Doug Walls from Vienna, Virginia. Congratulations to Doug Walls.
COSTELLO: Congratulations.
MYERS: CNN DAYBREAK mug on the way.
And here are your questions for today. When was the last time the U.S. track and field team won all three medals in the men's 400 meter race? And don't say last night, because we know that. Before that.
The latest CNN/"USA Today"/Gallup Poll has Bush and Kerry tied among what percentage of registered voters in Florida?
We'll give you the answers tomorrow.
COSTELLO: Great questions.
MYERS: Yes.
COSTELLO: Daybreak@CNN.com. That's Daybreak@CNN.com.
That does it for us. "AMERICAN MORNING" starts right now. Have a great day.
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Aired August 24, 2004 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: There has been airstrikes for hours now from U.S. helicopters, and there has been other fighting within Najaf as well near the mosque.
CLINCH: Right. And that, of course, is the question. The mosque itself, we're hearing, may not contain many of those fighters anymore. There may, of course, be some fighters in there.
The problem for the U.S. and Iraqi forces is that the warrens of streets that they have to go through to even get to the mosque are filled with snipers, filled with people with rocket-propelled grenades, a very dangerous situation.
COSTELLO: And maybe women and children in there as well.
CLINCH: So, just taking the mosque does not necessarily end this, but that's what we're watching for today.
COSTELLO: David Clinch, many thanks.
It is not enough. Let's talk politics now. It is not enough. That's what Democrats are saying about President Bush's take on attack ads. Bush is calling for an end to 527 ads, paid for by independent groups. But he didn't directly condemn the so-called Swift Boat ads, which attack John Kerry's military record.
Kerry's running mate, John Edwards, says Bush fell far short. The president spoke to reporters at his Texas ranch.
(BEGIN VIDEO CLIP)
QUESTION: When you say that you want to stop all...
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: All of them.
QUESTION: So, I mean, do...
BUSH: That means that ad and every other ad.
QUESTION: (OFF-MIKE).
BUSH: Absolutely. I don't think we ought to have 527s. I can't be more plain about it, and I hope my opponent joins me in saying, condemning these activities of the 527s. I think they're bad for the system. That's why I signed a bill, McCain-Feingold.
(END VIDEO CLIP) (BEGIN VIDEO CLIP)
SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: Today, George Bush faced his moment of truth, and he failed. He failed to condemn the specific attacks on John Kerry's military record. We didn't need to hear a politician's answer, but unfortunately that's what we got, and that's what the American people got today.
(END VIDEO CLIP)
COSTELLO: Those Swift Boat ads are obscuring other issues in campaign 2004. We're getting plenty of e-mail this morning saying enough. So enough of that for now. We're moving on to other issues.
All week long, we're doing a little RCV, review the candidate's viewpoints, prior to the Republican National Convention. This morning: defense.
(BEGIN VIDEOTAPE)
COSTELLO (voice over): In a nutshell, here goes. On missile defense, Senator John Kerry has proposed cutting $10 billion in funding and supports non-proliferation and arms control. President Bush has ordered a limited national missile defense system in place starting next month.
As for the size of the U.S. military, President Bush is not proposing any increase in troop strength. Senator Kerry wants to add 40,000 active-duty troops to decrease the current reliance on the National Guard.
Now for the program budget. Senator Kerry wants to invest in new equipment and technology and start a community defense service, but he hasn't said how much it might cost. President Bush would increase military spending by 4.2 percent to $380 billion.
(END VIDEOTAPE)
So let's delve a little deeper now. Live to Washington and our political analyst, Ron Brownstein.
Good morning -- Ron.
RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning.
COSTELLO: These are important issues. This morning the situation in Najaf is heating up. The Iraqi defense minister has given Muqtada al-Sadr's militia an ultimatum, get out of the mosque, we'll wipe you out. How might this battle affect the election?
BROWNSTEIN: Well, Carol, probably these are going to be the most important issues, I think, in the election. It's always the economy, stupid. Those things always matter, how people feel about their pocketbook, health care and so forth.
But I think there are many people on both sides who believe this election will turn, above all, on voters' assessment, their report card really, on President Bush's response to the war on terror, to the aftermath of 9/11, symbolized, I think above all, by his decision to invade Iraq.
So, I think these are issues at the top of the agenda. There are real differences between the candidates and some convergences, too.
COSTELLO: So, we know that security -- you know, as you say that, we know that security is going to be a major issue at the Republican National Convention. But we also know that the American people are upset at the escalating cost of this war. So, how does President Bush make the price tag easier for voters to swallow?
BROWNSTEIN: Well, that's a good question. And certainly the central argument of John Kerry and foreign policy, even though their positions have blurred a little bit, some of the differences in some areas, Kerry's central argument is that he would be more effective at reaching out to allies around the world and either pressure or convince them to share more of the burden financially and militarily in Iraq. That is the single most common, really, unrelenting theme that he has pursued throughout this campaign.
President Bush faces that challenge. After the series of international meetings in June, the NATO summit, the G8 meeting and so forth, he came home with a lot more sympathy but without a lot more tangible help. And I think this is an argument that John Kerry is going to press his case that President Bush has alienated too many of our traditional friends to get the help we need in Iraq.
COSTELLO: Yet many people say John Kerry hasn't really capitalized on the issue, because he's all, like, wrapped up in this Swift Boat controversy.
BROWNSTEIN: Well, and even before the Swift Boat controversy, Carol, I mean, he's been wrapped in trying to figure out where he can find a point to disagree with President Bush without seeming to open himself to more charges of flip-flopping.
Of course, John Kerry voted to authorize the use of military force back in October of 2002, but he hasn't said whether as president he himself would have gone to war. And he's argued that if he had been president he would have pursued this in a very different way, giving diplomacy and inspections more time to proceed.
So, he has had trouble articulating a clear distinction from President Bush, especially in the last four or five months as President Bush has relied more on international institutions like the U.N. and the formation of the new Iraqi government, which was John Kerry's central argument.
So, some of the differences are blurred. But, you know, electorally, that may be a secondary consideration anyway. I think that voters by and large are dividing based on their view of President Bush's decisions, with the contrast with Kerry, I think, a secondary factor for many of them.
COSTELLO: Ron Brownstein joining us live from Washington this morning. We'll see you again tomorrow. Thank you.
BROWNSTEIN: All right, thank you.
COSTELLO: Tomorrow on DAYBREAK, we take a look at where Bush and Kerry stand on homeland security issues like the Patriot Act, intel agencies and enemy combatants.
The presidential race is still a squeaker, at least in Florida. A new CNN/"USA Today"/Gallup Poll shows John Kerry and President Bush are tied at 45 percent each. This is among registered voters. Ralph Nader stands at 3 percent.
But among people who say they are likely to vote, President Bush has a slight edge, 48 percent to Kerry's 46 percent. Statistically that doesn't mean much though.
And an overwhelming 71 percent of Floridians polled say they approve of how President Bush responded to the two big storms that hit Florida.
A little turbulence in talks between US Airways and its pilots. In about three minutes, why the talks have stalled, and how it might affect you.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: The Iraqi defense minister has issued an ultimatum this morning: Get out of the Imam Ali shrine or you will be wiped out.
Our Matthew Chance is embedded with soldiers there in Najaf. He brings us up-to-date on more of what's happening there.
What is the situation there now -- Matthew?
MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT: Carol, thanks.
Well, still ferocious fighting is taking place inside Najaf itself. But in the meantime, the Iraqi defense minister, as you mentioned there, issuing a sharp ultimatum to the forces of the Mehdi militia loyal, of course, to the radical Shia cleric, Muqtada al-Sadr.
He's saying now that Iraqi forces are moving this evening, or will be moving this evening, to surround the Imam Ali shrine, one of the holiest shrines in Shia Islam. They're going to seal off the entrance points to that mosque to prevent further Mehdi Army fighters from going inside.
Then, he says, they're going to use loudspeakers to call on those supporters of Muqtada al-Sadr -- there are many hundreds of them holed up inside of that mosque -- to come out and to surrender themselves.
There are women and children amongst them. The Iraqi defense minister is saying that they are very concerned about the welfare of those people inside. There has been a lot of concern about people being held there as human shields. They're going to use loudspeakers to encourage people to come out.
But the defense minister was also stressing that if by daybreak on Wednesday morning there were still people inside, he would order Iraqi forces to storm that mosque, even though that's an immensely controversial action that has been sort of threatened over the past several weeks.
This is one of the holiest shrines in Shia Islam. The very fact that there has been fighting there threatens to provoke Shia backlash amongst the majority community in this country. That's something the Iraqi government wants to avoid.
But at the same time, they see this uprising as a very serious challenge to their authority, and they want to end it as soon as possible -- Carol.
COSTELLO: We've seen U.S. tanks there this morning, and we've seen helicopter gunships. How intense is the fighting there in Najaf now, Matthew?
CHANCE: Well, I think the fighting is sporadic. It's not ongoing. But certainly when it happens, it happens with great intensity. It's incredibly ferocious.
U.S. forces are going in alongside Iraqi troops, backed by tanks and helicopter gunships. And overnight, we've seen American warplanes dropping extremely powerful explosives on certain buildings inside Najaf, buildings known to be strongholds of the Mehdi Army.
So, the operations tend to go on for several hours and they're incredibly tense. And then afterwards kind of, you know, sporadic gunfire. Snipers are still very much active on the streets, making life for ordinary Iraqis inside Najaf extremely difficult -- Carol.
COSTELLO: Yes, I understand a lot of residents have now fled the city, and for good reason. Matthew Chance, you be careful. Thank you.
It's time for a little business buzz now. Talks break down between US Airways and its pilots. Could a chapter 11 filing be next?
Carrie Lee has more for us live from the Nasdaq Marketsite.
Good morning -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol. Not a good time for US Airways. You know, they've been negotiating with their pilots, and now the talks among with the unions regarding labor concessions have broken down.
US Airways has been asking its pilots union for $300 million in labor concessions, but the two sides were far apart on the dollar value of a new package. And they don't have any other negotiations scheduled at this time.
Now, a deal with the pilots would be the first significant step in US Airways' plan to cut costs by $1.5 billion a year, including cutting labor by a total $800 million.
But this first step is not happening, and the airline has warned that bankruptcy does loom if they're not able to reach these cost cuts by September 30. And if the company does have to file for chapter 11, this would be US Airways second bankruptcy, Carol, in two years.
So, we're watching the stock today. This news came out just before the market closed yesterday.
COSTELLO: Carrie Lee live from the Nasdaq Marketsite, thank you so much.
The battle is explosive, political ads attacking both President Bush and John Kerry's war records. Here's a look at one of those ads, the latest one.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: George Bush used his father to get into the National Guard, was grounded, and then went missing. Now he's allowing false advertising that attacks John Kerry.
(END VIDEO CLIP)
COSTELLO: You've probably seen the Swift Boat ads. That ad you just saw was paid for by MoveOn.org. It's in retaliation for the ads from the Swift Boat Veterans for Truth, a group critical of Senator John Kerry's war service.
The battle of the ads has obscured every other issue of this campaign, and they are our hot topics of the morning.
Joining us from the right, libertarian talker Neal Boortz, and from the left, talker Nancy Skinner from Chicago.
Welcome to you both.
NANCY SKINNER, LIBERALK TALK SHOW HOST: Good morning, Carol.
NEAL BOORTZ, CONSERVATIVE RADIO TALK SHOW HOST: Hey, Nancy.
SKINNER: Hi, Neal.
COSTELLO: OK, Nancy, let's start with you. When will this debate end?
SKINNER: Well, I'll tell you, Carol, I think the media here have an obligation to look at the facts. This is a Karl Rove media extravaganza. You should call this the "Rove boat veterans for Bush."
Because now the facts have come out, and there is overwhelming evidence that these guys are lying about the truth. You have every one in the boat with Kerry backing up his version. You have the only living commander of one of the boats, an editor at the "Chicago Tribune," non-partisan, for the first time coming out and backing up Kerry's story of the events. You have a vet last night said he was approached by these guys. They changed the affidavit after he told them the story.
At what point does the media have to step in and say, the truth is the overwhelming body of evidence is that Kerry was telling the truth, and this is a smear campaign like we've never seen before?
COSTELLO: Neal, I know you're itching to say something.
BOORTZ: Well, no. I mean, I've heard this. The overwhelming body of evidence, provable falsehoods, the whole thing, there are no provable falsehoods. There is no overwhelming body of evidence that what is said in the Swift Boat Veterans ad is untrue. The fact of the matter is that neither side is probably telling the whole truth here.
I find it very instructive that in both the first Purple Heart case and in the Swift Boat and the mine case on the river that it is John Kerry is the only officer, the only officer, present at either one of those incidents that says there was live fire.
So, I mean...
SKINNER: That's not true! Neal, in the military records themselves, it says these guys...
BOORTZ: That's right, Nancy.
SKINNER: ... four of these veterans own accommodations that says they were under enemy fire.
BOORTZ: John Kerry wrote those reports, Nancy.
SKINNER: No, he did not!
BOORTZ: Yes, he did.
SKINNER: John Kerry did not!
COSTELLO: Let's stop the argument right here, and just talk about the ads themselves and how they're obscuring every other issue in this campaign.
I want to read you a quote from Roy Hoffman, who is the founder of Swift Boat Veterans for Truth. He said: "It would make no difference if John Kerry were a Republican, Democrat or an Independent. Swift Boat Veterans would still be speaking the truth concerning John Kerry's military service record in Vietnam."
So, in essence, he's kind of standing up for 527s and saying they're just trying to get the truth out there, Nancy.
SKINNER: But those commercials were funded by Bob Kerry, a Republican and Bush backer. So, it's not true. Those commercials wouldn't have been on the air, because they wouldn't have had the money.
I'll tell you what: This is not about 527s. And President Bush tried to make it about 527s. He refused to come out and say, you know what? This is just dirty and low-pool. That's what he should be saying.
BOORTZ: Nancy...
SKINNER: This has nothing to do with 527s.
BOORTZ: Nancy, a question: Who funds MoveOn.org and Media Fund?
SKINNER: Well, I will tell you, yes, that that is funded by Democrats and liberals and...
BOORTZ: No, no, no, wait a minute. Isn't it George Soros?
SKINNER: But the difference is what's the truth?
BOORTZ: George Soros, a Hungarian-born international financier.
SKINNER: What's the problem (UNINTELLIGIBLE)?
BOORTZ: Well, I mean, you were very quick to mention a Houston home builder. Oh, how sinister. But a Hungarian-born international financier?
SKINNER: The difference is -- the difference is that these veterans are saying that they are not influenced by politics or special interests, when, in fact, the volunteer coordinator for the Bush, his campaign, was in the ad himself. Colonel Ken Cordier (ph) is the volunteer coordinator for the Bush campaign.
BOORTZ: That's right.
SKINNER: He appears in the ad himself.
BOORTZ: That's right. And the Bush campaign immediately removed him from any further participation...
SKINNER: And said we had nothing to do with this.
COSTELLO: OK. Let's move on to this topic: Should these 527s be banned? Because, really, both sides aren't quite telling the whole truth. So, should they be banned? And are they really harmful in the public arena?
BOORTZ: Absolutely not.
COSTELLO: Why?
BOORTZ: Because these 527s are groups of people that have a political viewpoint that they want to put forward. We are a nation of free speech. They have every right to do that. The Campaign Finance Act was obscenity. And the Supreme Court's support of that act was an atrocity. Anybody that wants to express a political viewpoint in this country ought to be able to do so, no matter what that political viewpoint is.
COSTELLO: Nancy.
SKINNER: Well, I'm going to have to agree with Neal on this one. I think that really the media has to step up to the plate and discern the facts and stop saying, well, they said this and they said that.
In this Swift Boat incident, for example, I think the facts are clear the media has to say the overwhelming...
COSTELLO: All right...
SKINNER: ... body of evidence does support the Kerry (UNINTELLIGIBLE).
COSTELLO: All right, we'll end on agreement. It's a beautiful thing.
BOORTZ: Nancy, you look great today.
SKINNER: Thanks, Neal.
BOORTZ: See, she didn't return the compliment.
COSTELLO: Nancy Skinner and Neal Boortz joining DAYBREAK this morning, thank you so much.
Your news, money, weather and sports. It is 6:47 Eastern. Here's what's all new this morning.
A new ultimatum comes amid some of the most intense fighting in Najaf. Iraq's defense minister is warning Iraqis to leave the Imam Ali shrine or they will be wiped out.
You're looking at new pictures, by the way, just in this morning from that embattled city.
The atheist who sued to get the phrase "Under God" removed from "The Pledge of Allegiance" says he will re-file his challenge; that, after the Supreme Court refused to overturn its ruling that Michael Newdow cannot represent his daughter because he lacks full custody.
In money news, another drop in oil prices. U.S. light crude fell below 46 bucks a barrel. That marks the third successive slide, but supply concerns do persist, and that's keeping prices close to historical levels.
In culture, police in Finland say hundreds of paintings confiscated from a Salvador Dali exhibition are forgeries. Police shut down the Helsinki (ph) exhibition in June. They confiscated the works supposedly by the Spanish surrealist painter and other famous artists. In sports, take a look. Oh, it looks bad, but it wasn't. Derek Jeter bruised his elbow last night in the 9th inning against the Cleveland Indians. The Yankees did go on to win 6-4, and Jeter is OK. In fact, he is expected to play tonight.
(WEATHER BREAK)
COSTELLO: Those are the latest headlines for you this morning.
From the ravages of war to a chance at Olympic victory, the Summer Games and the Iraqi soccer team, details on their next big match and a live report from Athens. This is DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: We are always interested in CNN.com, because, well, oftentimes people are more interested in different stories than we present on DAYBREAK. But this time, we're kind of...
CHAD MYERS, CNN METEOROLOGIST: Well, it's the most clicked-on news product ever, so, you know, here you go.
COSTELLO: CNN.com.
MYERS: Amber Frey.
COSTELLO: Yes, the No. 1 clicked-on story on the Web today, Amber Frey taking the stand to be cross-examined by Mark Geragos. We've been talking about all of that -- we've been talking about that all morning. And you're sure to hear more about that throughout the day on CNN and on every other network you can think of.
MYERS: The next one I liked was George Washington.
COSTELLO: Yes, he's getting a makeover.
MYERS: They're going to try to make him look different. Great.
COSTELLO: They're going to try to make him look hot.
MYERS: Yes. But here's one of the things that they're going to have to work on. Because of bone loss resulting from his losing of teeth, the shape of Washington's face probably changed dramatically over the years. Explaining that, pinpointing those changes will be difficult.
COSTELLO: Yes. Well, they're going to use new technology to examine busts that were made of him and...
MYERS: A computer-generated Washington.
COSTELLO: Yes, yes.
MYERS: Like who could even fathom that?
COSTELLO: They're going to make, like, a wax figure of him or something. But they're going to make him attractive and gentlemanly to show how hot he was as a young man to attract more visitors to Mount Vernon.
The third most clicked-on story, what was it? Tell me.
MYERS: Money, money, money, money.
COSTELLO: Money. Yes, it was.
MYERS: Those 527s.
COSTELLO: Those 527s. And we've been getting a lot of e-mail from you this morning. You do not believe, most of you anyway, that 527s should be banned.
MYERS: Right.
COSTELLO: Because it's a freedom of speech thing.
MYERS: Because of the First Amendment.
COSTELLO: Right. Although those ads make you really, really angry.
Right now, Iraq has one Olympic medal to its name. Let's move on to the Olympics now. It won the bronze in a weightlifting competition way back in 1960, but the country's soccer team is looking almost golden. Can you believe it?
MYERS: They are in the medal round.
COSTELLO: Oh, yes. Let's head live to Athens and Larry Smith.
Good morning -- Larry.
LARRY SMITH, CNN CORRESPONDENT: Good morning, and good afternoon to you from Athens.
Imagine the celebration if they win today's semifinal game versus Paraguay. Saturday night here, many Iraqis celebrated. They chanted and waved flags. And so, we'll see if they can get it down again tonight.
It their first Olympics since 1988, the Iraqi soccer team has been really one of the big stories. It was a victory for them just to get here. But now, as you mentioned, trying to get their first-ever medal. They are a couple of wins away even from getting a gold medal.
And, again, the men's soccer semifinals are tonight, and Iraq is taking on Paraguay and one of those.
Now, last night, the 400 meter men's dash, it was 20-year-old Jeremy Wariner taking gold. The Baylor student ran a personal best, 44 seconds, to become the sixth consecutive American male to win the 400. Teammates Otis Harris and Derek Brew completed the gold, silver and bronze sweep. Wariner golden in the 400. In weightlifting -- or make that, I'm sorry, in gymnastics, a bit of controversy again for Paul Hamm. The American gymnast, had to wait about 10 minutes to complete his event in the high bar as the crowd was booing because they felt there was a lower-than-perceived score for Russian gymnast Alexei Nemov, who had to come out then and calm the crowd down. He went on and performed, Hamm did, and he was near perfect himself. He takes silver. Nemov, by the way, finished just in fourth.
And one final note, the latest, I should say, on the Hamm situation regarding his gold medal in the all-around gymnastic. Federation officials now say there is nothing that they can do in South Korea's request to try to get a duplicate gold medal. This coming up after they admitted there was a scoring error in last Wednesday's competition that inadvertently gave Hamm his gold medal.
It appears now that the only way Hamm could lose his gold medal in this event is if he chooses to give it up himself, and he has said that that is something that he will not do.
That's the story right now from Athens.
Carol -- let's go back to you.
COSTELLO: All right, Larry Smith reporting live from Athens, thank you.
We're going to take a break. And in two minutes, we'll announce the DAYBREAK mug winner.
MYERS: We'll give away a coffee mug.
COSTELLO: We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: It's time to give away the mug.
MYERS: We got good questions, a lot of good answers.
According to our story yesterday, how many versions of "The Scream" exist out there? The answer is four. And that was the one, obviously, that got stolen from that, you know, museum yesterday.
And new overtime rules are created under what federal agency? And the answer is the Labor Department.
And the winner, Doug Walls from Vienna, Virginia. Congratulations to Doug Walls.
COSTELLO: Congratulations.
MYERS: CNN DAYBREAK mug on the way.
And here are your questions for today. When was the last time the U.S. track and field team won all three medals in the men's 400 meter race? And don't say last night, because we know that. Before that.
The latest CNN/"USA Today"/Gallup Poll has Bush and Kerry tied among what percentage of registered voters in Florida?
We'll give you the answers tomorrow.
COSTELLO: Great questions.
MYERS: Yes.
COSTELLO: Daybreak@CNN.com. That's Daybreak@CNN.com.
That does it for us. "AMERICAN MORNING" starts right now. Have a great day.
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