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Iraqi Sovereignty Transfered Two Days Early

Aired June 28, 2004 - 11:30   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.


BETTY NGUYEN, CNN ANCHOR: I'm Betty Nguyen at CNN headquarters in Atlanta in for Daryn Kagan today. Let's check the headlines for Monday, June 28.
Iraq is a sovereign country today. The U.S. occupation formally ended with the handover of power to an interim Iraqi government today. That transfer came two days ahead of schedule in part due to ongoing security concerns.

Gas prices are slipping again. They fell another 7 cents last week to a national average of $1.94 a gallon. The Lundberg Survey says prices are now off their peak last month by 13 cents.

A California hiker is recovering today from a mountain lion attack. The woman has severe injuries to her thighs and eyes. Friends managed to scare off the animal before services workers then later tracked it down and killed it.

A funeral service this hour for child poet and muscular dystrophy advocate Mattie Stepanek. He died last week at the age of 18 from a rare form of the disease. His five volumes sold millions of copies. Three made "The New York Times" best-seller list.

The new Iraqi government which took office today will shepherd the country to elections by January 31, 2005. Ambassador Paul Bremer formally ended the U.S.-led occupation by turning over sovereignty to Iraqi leadership today, two days ahead of schedule. Bremer then left the country. But before he did, he had a farewell message for the people of Iraq.

(BEGIN VIDEO CLIP)

L. PAUL BREMER, FRM. IRAQI CIVIL ADMINISTRATOR: The future of Iraq belongs to you, the Iraqi people. We and your other friends will help, but we can only help. You must do the real work.

The Iraq your children and their children inherit will depend on your actions in the months and years ahead. You Iraqis must now take responsibility for your future of hope. You can create that future of hope by standing fast against those who kill your police and soldiers, who kill your women and children, who wreck Iraq's pipelines and power lines, and then claim to be your champions.

You can create that future of hope by supporting your government and the elections they are pledged to bring you. You can create that future of hope in a thousand different ways by sharing through your words and deeds a personal commitment to a stable and peaceful Iraq.

You, Iraq's Kurds and Arabs, Shi'a and Sunni, Turkomen and Christian, you are more like each other than you are different from one another. You have a shared vision of how a united Iraq can, again, be a beacon of hope to the region. You have a shared hatred of the violence inflicted on you by those who abhor your vision. And you have a shared love of this wonderful, rich land.

Let no one pit you against each other. For when Iraqis fight Iraqis, only Iraqis suffer.

I leave Iraq gladdened by what has been accomplished and confident that your future is full of hope. A piece of my heart will always remain here in the beautiful land between the two rivers with its fertile valleys, it's majestic mountains and its wonderful people. ' (END VIDEO CLIP)

NGUYEN: The transfer of power does not mean the insurgency in Iraq will disappear. We' want to talk about that with CNN's Kathleen Koch. She's at the Pentagon this morning. Hi, Kathleen.

KATHLEEN KOCH, CNN CORRESPONDENT: Hi, Betty. The new Iraqi government was saying even before this morning's surprise handover that restoring security and dealing with the insurgents would be its top priority. And it's becoming increasingly apparent that that insurgency is better organized than anyone had expected.

(BEGIN VIDEOTAPE)

KOCH (voice-over): More kidnappings, more attacks on Baghdad's "Green Zone" and U.S. forces in Iraq. U.S. officials now no longer describing the violence as the random acts of killers and thugs, but instead as an orchestrated campaign.

COLIN POWELL, SECRETARY OF STATE: There certainly is a level of coordination, in my judgment. And hopefully we can penetrate whatever system is operating there, whatever command and control system is at work.

KOCH: Iraq's incoming prime minister reveals the new government's initial strategy will be to offer amnesty to resistance fighters without blood on their hands.

IYAD ALLAWI, IRAQI PRIME MINISTER: Provided they come forward and give information about the hardcore people or the people whom they have assisted. That is a possibility that my government is looking at.

KOCH: But Iraq's new defense minister vowed no mercy for the remaining insurgents telling "Newsweek" magazine, quote, "We have different laws than you do. We will cut off their hands and behead them." A troubling development says some U.S. lawmakers.

SEN. CHRISTOPHER DODD (D), CONNECTICUT: Well certainly this isn't exactly what we were hoping were we're going to set up here when we talked about going on creating a new Iraq.

SEN. CHUCK HAGEL (R), NEBRASKA: It is difficult, it is tough, but this is their world. And if they're going to make something of their world, then they're going to have to not only win it, but then frame it in their way.

(END VIDEOTAPE)

KOCH: Also of concern that to crack down on the insurgency, the new Iraqi government plans to bring back what it calls "decent members of Saddam Hussein's army and police force." Though sorting the good from the bad, Betty, clearly won't be easy. Back to you.

NGUYEN: CNN's Kathleen Koch. Thank you.

Well concerns about the insurgency and a possible strike on the planned day of transfer fueled today's surprise. Sumir Sumaidy is a member of the Iraq Governing Council.

(BEGIN VIDEO CLIP)

SUMIR AL-SUMAIDY, IRAQ GOVERNING COUNCIL: It's not a matter of being necessary. It's, I think, a measure which has been taken to disrupt any planning that insurgents and terrorists had for the big day.

We had intelligence that some major acts of terror were being prepared for the day of the transfer of power. And I think this decision was to preempt that and to take sovereignty in the hands of Iraqis so that tomorrow, on the day after, would be normal days.

(END VIDEO CLIP)

NGUYEN: Sumaidy went on to say that in his opinion, the handoff should have been completed earlier. He called the occupation, quote, "a mistaken concept."

How do Americans view the handover of power in Iraq? We have new poll numbers out this hour. Judy Woodruff has that and more on our daily campaign update. Hi, Judy.

JUDY WOODRUFF, CNN ANCHOR: Good morning, Betty. Thank you.

Well with the situation in Iraq weighing heavily on the presidential campaign, our new poll suggests Americans have a mixed view of the handover. Seventy-five percent say they favor the transfer of power. And most say they believe it will make things better in Iraq.

But 60 percent say it is a sign that U.S. policy in Iraq is failing. We'll have more numbers and analysis this afternoon on "INSIDE POLITICS."

Democrat John Kerry has canceled a planned speech today to the U.S. Conference of Mayors because it would force him to cross a picket line of Boston police officers. Boston is the site of the Democratic Convention now just one month away. Boston's mayor, Democrat Tom Menino, says he is, quote, "very, very disappointed by Kerry's decision."

Independent Presidential hopeful Ralph Nader came up short this weekend in his effort to win the Green Party nomination. The Greens chose activist David Cobb instead of Nader, preferring Cobb's plan to build a party from within.

Nader supporters, meanwhile, gathered voter signatures over the weekend in Oregon and Washington state in an effort to get Nader's name on those two state ballots.

Well if you tune into the Democratic convention four weeks from tonight, you will likely see speeches by Al Gore and Bill Clinton. Party sources are telling CNN that senator and former first lady Hillary Rodham Clinton will have only a minor role at the convention.

The Republican Party's list of convention speakers will be released today. Sources confirming California Governor Arnold Schwarzenegger will get a prime time slot as well as Senator John McCain and former New York City Mayor Rudy Giuliani.

A question, will today's surprise handover of power reshape the race for the White House? We take a look at the possible fallout with former U.N. Ambassador Richard Holbrooke and Republican Senator John Warner of Virginia, chairman of the Senate Armed Services Committee.

I'll have that plus much more when I go "INSIDE POLITICS" at 3:30 p.m. Eastern, 12:30 Pacific. But for now, right back to Betty in Atlanta.

NGUYEN: Thank you, Judy.

Well the movie "Fahrenheit 9/11" is heating things up at the box office. The documentary was No. 1 this weekend, pulling in close to $22 million. Now, to put that into perspective, Michael Moore's "Bowling for Columbine" made $21.6 million in nine months. "Fahrenheit 9/11" is the first documentary ever to debut in the top spot in the weekend box office.

There is much more to come on the transfer of power in Iraq. Keep it tuned to CNN.

But up next, your "Daily Dose" of health news. Imagine hiccupping for nine months straight. We look at what happens when a minor annoyance turns into a major health hazard.

(COMMERCIAL BREAK)

NGUYEN: Having hiccups can be annoying, but what if you had them for nine months straight? In our "Daily Dose" of health news, Dr. Sanjay Gupta has one man's story and his unique cure.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): When most of us get hiccups it's because we swallowed air or ate too much too fast or got excited. Hiccups cause the diaphragm to spasm.

But in Shane Shafer's case he had a stroke two years ago that damaged his brain stem causing his brain to send a signal to hiccup over and over again. He'd had the hiccups for nine months straight. He hiccupped every four seconds whether he was awake or asleep.

He tried everything. The regular cures and then the drugs normally prescribed for chronic hiccups. Nothing worked. Shane was reduced to gagging himself to vomit which brought him about an hour and a half of relief.

He would also give himself injections of a narcotic called Stadol. But the drug would wear off in about an hour so he had to inject himself again up to 10 to 12 times a day at a cost of $10 an injection. At 100-plus dollars a day and with insurance not covering it, he had to find a better answer.

Finally, he went to see Dr. Brian Paine, a neurosurgeon at the LSU Health Science Center. He brainstormed with other doctors and they decided to try attaching a stimulator to the Vegas nerve, which is the nerve that carries the impulse that tells the diaphragm to spasm.

The battery for the stimulator is implanted in the chest and a stimulator wire is wrapped around the Vegas nerve in the neck. The stimulator sends an impulse to break the hiccup signal from the brain and the spasms stop.

This is the first time the stimulator has ever been used to treat chronic hiccups. But in his case it seemed to do the trick. After surgery, Shane is feeling great. No hiccups.

SHANE SHAFER, CHRONIC HICCUP PATIENT: A hundred percent different. The hiccups are gone. A little raspy in the throat, but I can deal with that.

GUPTA: He went home Friday. Doctors will leave the implant in until the battery wears out. It will take five or six years. If the hiccups come back, it will be easy to fix. Just get the battery replaced.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

NGUYEN: And to get your "Daily Dose" of health news online, all you have to do logon to our Web site. You'll find the latest medical news and a health library along with information on diet and fitness as well. The address is cnn.com/health.

There's a lot more to come. We are continuing to follow developments out of Iraq. Power there now officially transferred to the new Iraqi government. The latest coming up.

But up next, something a lot of Americans are thinking about now that we're right in the middle of summer. We're going to show you how to get the most out of your frequent flier miles. Stay with us.

(COMMERCIAL BREAK)

NGUYEN: Frequent flyer programs date back to 1981. But today 100 million passengers take advantage of the freebies. But plenty of flyers don't make the most of their miles. They just don't know how.

So Melissa Biggs Bradley, an editor with "Town and Country Travel" is going to help us with that. She's at the Time Warner Center in New York this morning. Thanks for joining us.

MELISSA BIGGS BRADLEY, EDITOR, "TOWN AND COUNTRY TRAVEL": Betty, it's nice to be here.

NGUYEN: You say the big thing is just don't change your buying habits.

BRADLEY: Yes. It's absolutely crazy to try and earn miles spending on credit cards. Perfect example, you spend $25,000 on Citibank American miles to get an unrestricted coach fare and you're saving $278 if you're buying round trips to Boston to L.A.

If it takes you a year to pay off that $25,000, you're spending more than $2,000 in finance charges.

NGUYEN: And you want to make the most of the miles so you have to concentrate your loyalty.

BRADLEY: Absolutely. You're much better off having 150,000 miles in one program than having 25,000 miles in six different programs. Twenty-five thousand miles will get you a domestic round trip coach fare and that's an average savings of about $300.

If you have the same program, United, for instance, 150,000 miles will get you a round trip business class ticket to South America. I mean Denver to Rio, that's a cost of about $6,600. So you're saving -- for six times the miles, you're getting 24 times the cash value.

NGUYEN: But what if the airline you're loyal to doesn't have the best fare?

BRADLEY: Well a lot of these airlines have partnership programs. So almost every single one of them you can fly where you want to fly through one of their partners.

NGUYEN: OK, you say choose miles over merchandise. That can be hard because it looks good when you see the DVDs, plasma televisions being offered.

BRADLEY: It does look good but it really isn't saving you money. I mean American Express, for instance, in their rewards programs, you can spend 200,000 and get a Bose radio entertainment system which retails for $1,900.

But if you spend only 160,000 AMEX points in a Delta SkyMiles program you can fly round trip first class to Europe from North America. That's a $7,500 ticket if you're going Atlanta to Paris. So it's a much better deal.

NGUYEN: And when you use those miles, you should take the longest possible trip with them, shouldn't you?

BRADLEY: Yes, you should fly internationally if possible. And certainly on a premium ticket. You just get a lot more bang for your buck if you're flying first class or business class internationally.

I think Continental right now you can fly New York to Rome, round trip business class, you're saving yourself about $3,200 off the cost of the ticket, which is about 3 cents or more per mile in value.

But if you spend only 25,000 miles on Continental, you get a New York to L.A. ticket, which you can buy for around $200 coach. That's less than 0.6 cents per value on your miles.

NGUYEN: Melissa, you advise to go ahead pay for the seat you want. But doesn't that go against the whole purpose here? You're trying to get a free ticket.

BRADLEY: Well not really because if you're smart about how you've accrued these miles, you haven't spent anything on them. So you're much better off -- people don't usually know they're unrestricted fares that you can get. So instead of saying, you know, well, I can't fly 40,000 points to New York to L.A. because the first class tickets then have blackout dates or I'm not spending a Saturday night.

If you're just willing to spend 80,000 points, you get unrestricted first class fare. You can fly whenever you want, you don't have to stay extra nights. There are no blackout dates. So really you are getting the ticket that you want and the flexibility is worth more.

NGUYEN: And while it sounds good, there is still no such thing as a free ticket.

BRADLEY: No, there isn't any such thing. I mean now the airlines have so many miles, I think there's 9 trillion miles out there that are being redeemed. And they want to make some money off of this.

So they are in addition to customs fees and security fees after 9/11, they instituted a $10 tax for security. Airlines have fees for redeeming your awards. American Airlines, if you put in for a reward that is in less than 20 days before departure, you pay $50. If it's less than six days before departure, you pay $75 fee.

There are a lot of hidden fees. So it's not completely free. But if you use your miles intelligently, you can get more out of them than if you just try and redeem as soon as you earned enough to get one ticket.

NGUYEN: But beware of the pesky fees. All right, Melissa Biggs Bradley, "Town and Country Travel." Thank You.

BRADLEY: Thank you.

(MARKET UPDATE)

NGUYEN: We'll be right back.

(COMMERCIAL BREAK)

(WEATHER UPDATE)

NGUYEN: That is it from me. From the CNN Global Headquarters in Atlanta, I'm Betty Nguyen.

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


Aired June 28, 2004 - 11:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: I'm Betty Nguyen at CNN headquarters in Atlanta in for Daryn Kagan today. Let's check the headlines for Monday, June 28.
Iraq is a sovereign country today. The U.S. occupation formally ended with the handover of power to an interim Iraqi government today. That transfer came two days ahead of schedule in part due to ongoing security concerns.

Gas prices are slipping again. They fell another 7 cents last week to a national average of $1.94 a gallon. The Lundberg Survey says prices are now off their peak last month by 13 cents.

A California hiker is recovering today from a mountain lion attack. The woman has severe injuries to her thighs and eyes. Friends managed to scare off the animal before services workers then later tracked it down and killed it.

A funeral service this hour for child poet and muscular dystrophy advocate Mattie Stepanek. He died last week at the age of 18 from a rare form of the disease. His five volumes sold millions of copies. Three made "The New York Times" best-seller list.

The new Iraqi government which took office today will shepherd the country to elections by January 31, 2005. Ambassador Paul Bremer formally ended the U.S.-led occupation by turning over sovereignty to Iraqi leadership today, two days ahead of schedule. Bremer then left the country. But before he did, he had a farewell message for the people of Iraq.

(BEGIN VIDEO CLIP)

L. PAUL BREMER, FRM. IRAQI CIVIL ADMINISTRATOR: The future of Iraq belongs to you, the Iraqi people. We and your other friends will help, but we can only help. You must do the real work.

The Iraq your children and their children inherit will depend on your actions in the months and years ahead. You Iraqis must now take responsibility for your future of hope. You can create that future of hope by standing fast against those who kill your police and soldiers, who kill your women and children, who wreck Iraq's pipelines and power lines, and then claim to be your champions.

You can create that future of hope by supporting your government and the elections they are pledged to bring you. You can create that future of hope in a thousand different ways by sharing through your words and deeds a personal commitment to a stable and peaceful Iraq.

You, Iraq's Kurds and Arabs, Shi'a and Sunni, Turkomen and Christian, you are more like each other than you are different from one another. You have a shared vision of how a united Iraq can, again, be a beacon of hope to the region. You have a shared hatred of the violence inflicted on you by those who abhor your vision. And you have a shared love of this wonderful, rich land.

Let no one pit you against each other. For when Iraqis fight Iraqis, only Iraqis suffer.

I leave Iraq gladdened by what has been accomplished and confident that your future is full of hope. A piece of my heart will always remain here in the beautiful land between the two rivers with its fertile valleys, it's majestic mountains and its wonderful people. ' (END VIDEO CLIP)

NGUYEN: The transfer of power does not mean the insurgency in Iraq will disappear. We' want to talk about that with CNN's Kathleen Koch. She's at the Pentagon this morning. Hi, Kathleen.

KATHLEEN KOCH, CNN CORRESPONDENT: Hi, Betty. The new Iraqi government was saying even before this morning's surprise handover that restoring security and dealing with the insurgents would be its top priority. And it's becoming increasingly apparent that that insurgency is better organized than anyone had expected.

(BEGIN VIDEOTAPE)

KOCH (voice-over): More kidnappings, more attacks on Baghdad's "Green Zone" and U.S. forces in Iraq. U.S. officials now no longer describing the violence as the random acts of killers and thugs, but instead as an orchestrated campaign.

COLIN POWELL, SECRETARY OF STATE: There certainly is a level of coordination, in my judgment. And hopefully we can penetrate whatever system is operating there, whatever command and control system is at work.

KOCH: Iraq's incoming prime minister reveals the new government's initial strategy will be to offer amnesty to resistance fighters without blood on their hands.

IYAD ALLAWI, IRAQI PRIME MINISTER: Provided they come forward and give information about the hardcore people or the people whom they have assisted. That is a possibility that my government is looking at.

KOCH: But Iraq's new defense minister vowed no mercy for the remaining insurgents telling "Newsweek" magazine, quote, "We have different laws than you do. We will cut off their hands and behead them." A troubling development says some U.S. lawmakers.

SEN. CHRISTOPHER DODD (D), CONNECTICUT: Well certainly this isn't exactly what we were hoping were we're going to set up here when we talked about going on creating a new Iraq.

SEN. CHUCK HAGEL (R), NEBRASKA: It is difficult, it is tough, but this is their world. And if they're going to make something of their world, then they're going to have to not only win it, but then frame it in their way.

(END VIDEOTAPE)

KOCH: Also of concern that to crack down on the insurgency, the new Iraqi government plans to bring back what it calls "decent members of Saddam Hussein's army and police force." Though sorting the good from the bad, Betty, clearly won't be easy. Back to you.

NGUYEN: CNN's Kathleen Koch. Thank you.

Well concerns about the insurgency and a possible strike on the planned day of transfer fueled today's surprise. Sumir Sumaidy is a member of the Iraq Governing Council.

(BEGIN VIDEO CLIP)

SUMIR AL-SUMAIDY, IRAQ GOVERNING COUNCIL: It's not a matter of being necessary. It's, I think, a measure which has been taken to disrupt any planning that insurgents and terrorists had for the big day.

We had intelligence that some major acts of terror were being prepared for the day of the transfer of power. And I think this decision was to preempt that and to take sovereignty in the hands of Iraqis so that tomorrow, on the day after, would be normal days.

(END VIDEO CLIP)

NGUYEN: Sumaidy went on to say that in his opinion, the handoff should have been completed earlier. He called the occupation, quote, "a mistaken concept."

How do Americans view the handover of power in Iraq? We have new poll numbers out this hour. Judy Woodruff has that and more on our daily campaign update. Hi, Judy.

JUDY WOODRUFF, CNN ANCHOR: Good morning, Betty. Thank you.

Well with the situation in Iraq weighing heavily on the presidential campaign, our new poll suggests Americans have a mixed view of the handover. Seventy-five percent say they favor the transfer of power. And most say they believe it will make things better in Iraq.

But 60 percent say it is a sign that U.S. policy in Iraq is failing. We'll have more numbers and analysis this afternoon on "INSIDE POLITICS."

Democrat John Kerry has canceled a planned speech today to the U.S. Conference of Mayors because it would force him to cross a picket line of Boston police officers. Boston is the site of the Democratic Convention now just one month away. Boston's mayor, Democrat Tom Menino, says he is, quote, "very, very disappointed by Kerry's decision."

Independent Presidential hopeful Ralph Nader came up short this weekend in his effort to win the Green Party nomination. The Greens chose activist David Cobb instead of Nader, preferring Cobb's plan to build a party from within.

Nader supporters, meanwhile, gathered voter signatures over the weekend in Oregon and Washington state in an effort to get Nader's name on those two state ballots.

Well if you tune into the Democratic convention four weeks from tonight, you will likely see speeches by Al Gore and Bill Clinton. Party sources are telling CNN that senator and former first lady Hillary Rodham Clinton will have only a minor role at the convention.

The Republican Party's list of convention speakers will be released today. Sources confirming California Governor Arnold Schwarzenegger will get a prime time slot as well as Senator John McCain and former New York City Mayor Rudy Giuliani.

A question, will today's surprise handover of power reshape the race for the White House? We take a look at the possible fallout with former U.N. Ambassador Richard Holbrooke and Republican Senator John Warner of Virginia, chairman of the Senate Armed Services Committee.

I'll have that plus much more when I go "INSIDE POLITICS" at 3:30 p.m. Eastern, 12:30 Pacific. But for now, right back to Betty in Atlanta.

NGUYEN: Thank you, Judy.

Well the movie "Fahrenheit 9/11" is heating things up at the box office. The documentary was No. 1 this weekend, pulling in close to $22 million. Now, to put that into perspective, Michael Moore's "Bowling for Columbine" made $21.6 million in nine months. "Fahrenheit 9/11" is the first documentary ever to debut in the top spot in the weekend box office.

There is much more to come on the transfer of power in Iraq. Keep it tuned to CNN.

But up next, your "Daily Dose" of health news. Imagine hiccupping for nine months straight. We look at what happens when a minor annoyance turns into a major health hazard.

(COMMERCIAL BREAK)

NGUYEN: Having hiccups can be annoying, but what if you had them for nine months straight? In our "Daily Dose" of health news, Dr. Sanjay Gupta has one man's story and his unique cure.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): When most of us get hiccups it's because we swallowed air or ate too much too fast or got excited. Hiccups cause the diaphragm to spasm.

But in Shane Shafer's case he had a stroke two years ago that damaged his brain stem causing his brain to send a signal to hiccup over and over again. He'd had the hiccups for nine months straight. He hiccupped every four seconds whether he was awake or asleep.

He tried everything. The regular cures and then the drugs normally prescribed for chronic hiccups. Nothing worked. Shane was reduced to gagging himself to vomit which brought him about an hour and a half of relief.

He would also give himself injections of a narcotic called Stadol. But the drug would wear off in about an hour so he had to inject himself again up to 10 to 12 times a day at a cost of $10 an injection. At 100-plus dollars a day and with insurance not covering it, he had to find a better answer.

Finally, he went to see Dr. Brian Paine, a neurosurgeon at the LSU Health Science Center. He brainstormed with other doctors and they decided to try attaching a stimulator to the Vegas nerve, which is the nerve that carries the impulse that tells the diaphragm to spasm.

The battery for the stimulator is implanted in the chest and a stimulator wire is wrapped around the Vegas nerve in the neck. The stimulator sends an impulse to break the hiccup signal from the brain and the spasms stop.

This is the first time the stimulator has ever been used to treat chronic hiccups. But in his case it seemed to do the trick. After surgery, Shane is feeling great. No hiccups.

SHANE SHAFER, CHRONIC HICCUP PATIENT: A hundred percent different. The hiccups are gone. A little raspy in the throat, but I can deal with that.

GUPTA: He went home Friday. Doctors will leave the implant in until the battery wears out. It will take five or six years. If the hiccups come back, it will be easy to fix. Just get the battery replaced.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

NGUYEN: And to get your "Daily Dose" of health news online, all you have to do logon to our Web site. You'll find the latest medical news and a health library along with information on diet and fitness as well. The address is cnn.com/health.

There's a lot more to come. We are continuing to follow developments out of Iraq. Power there now officially transferred to the new Iraqi government. The latest coming up.

But up next, something a lot of Americans are thinking about now that we're right in the middle of summer. We're going to show you how to get the most out of your frequent flier miles. Stay with us.

(COMMERCIAL BREAK)

NGUYEN: Frequent flyer programs date back to 1981. But today 100 million passengers take advantage of the freebies. But plenty of flyers don't make the most of their miles. They just don't know how.

So Melissa Biggs Bradley, an editor with "Town and Country Travel" is going to help us with that. She's at the Time Warner Center in New York this morning. Thanks for joining us.

MELISSA BIGGS BRADLEY, EDITOR, "TOWN AND COUNTRY TRAVEL": Betty, it's nice to be here.

NGUYEN: You say the big thing is just don't change your buying habits.

BRADLEY: Yes. It's absolutely crazy to try and earn miles spending on credit cards. Perfect example, you spend $25,000 on Citibank American miles to get an unrestricted coach fare and you're saving $278 if you're buying round trips to Boston to L.A.

If it takes you a year to pay off that $25,000, you're spending more than $2,000 in finance charges.

NGUYEN: And you want to make the most of the miles so you have to concentrate your loyalty.

BRADLEY: Absolutely. You're much better off having 150,000 miles in one program than having 25,000 miles in six different programs. Twenty-five thousand miles will get you a domestic round trip coach fare and that's an average savings of about $300.

If you have the same program, United, for instance, 150,000 miles will get you a round trip business class ticket to South America. I mean Denver to Rio, that's a cost of about $6,600. So you're saving -- for six times the miles, you're getting 24 times the cash value.

NGUYEN: But what if the airline you're loyal to doesn't have the best fare?

BRADLEY: Well a lot of these airlines have partnership programs. So almost every single one of them you can fly where you want to fly through one of their partners.

NGUYEN: OK, you say choose miles over merchandise. That can be hard because it looks good when you see the DVDs, plasma televisions being offered.

BRADLEY: It does look good but it really isn't saving you money. I mean American Express, for instance, in their rewards programs, you can spend 200,000 and get a Bose radio entertainment system which retails for $1,900.

But if you spend only 160,000 AMEX points in a Delta SkyMiles program you can fly round trip first class to Europe from North America. That's a $7,500 ticket if you're going Atlanta to Paris. So it's a much better deal.

NGUYEN: And when you use those miles, you should take the longest possible trip with them, shouldn't you?

BRADLEY: Yes, you should fly internationally if possible. And certainly on a premium ticket. You just get a lot more bang for your buck if you're flying first class or business class internationally.

I think Continental right now you can fly New York to Rome, round trip business class, you're saving yourself about $3,200 off the cost of the ticket, which is about 3 cents or more per mile in value.

But if you spend only 25,000 miles on Continental, you get a New York to L.A. ticket, which you can buy for around $200 coach. That's less than 0.6 cents per value on your miles.

NGUYEN: Melissa, you advise to go ahead pay for the seat you want. But doesn't that go against the whole purpose here? You're trying to get a free ticket.

BRADLEY: Well not really because if you're smart about how you've accrued these miles, you haven't spent anything on them. So you're much better off -- people don't usually know they're unrestricted fares that you can get. So instead of saying, you know, well, I can't fly 40,000 points to New York to L.A. because the first class tickets then have blackout dates or I'm not spending a Saturday night.

If you're just willing to spend 80,000 points, you get unrestricted first class fare. You can fly whenever you want, you don't have to stay extra nights. There are no blackout dates. So really you are getting the ticket that you want and the flexibility is worth more.

NGUYEN: And while it sounds good, there is still no such thing as a free ticket.

BRADLEY: No, there isn't any such thing. I mean now the airlines have so many miles, I think there's 9 trillion miles out there that are being redeemed. And they want to make some money off of this.

So they are in addition to customs fees and security fees after 9/11, they instituted a $10 tax for security. Airlines have fees for redeeming your awards. American Airlines, if you put in for a reward that is in less than 20 days before departure, you pay $50. If it's less than six days before departure, you pay $75 fee.

There are a lot of hidden fees. So it's not completely free. But if you use your miles intelligently, you can get more out of them than if you just try and redeem as soon as you earned enough to get one ticket.

NGUYEN: But beware of the pesky fees. All right, Melissa Biggs Bradley, "Town and Country Travel." Thank You.

BRADLEY: Thank you.

(MARKET UPDATE)

NGUYEN: We'll be right back.

(COMMERCIAL BREAK)

(WEATHER UPDATE)

NGUYEN: That is it from me. From the CNN Global Headquarters in Atlanta, I'm Betty Nguyen.

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