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American Morning

Recent Surge in Violence Taking Deadly Toll on U.S. Forces; Discussion with Paul Bremer

Aired April 06, 2004 - 07:00 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.

BILL HEMMER, CNN ANCHOR: Good morning. Deadly fighting across Iraq today. A private militia in a firefight with U.S. troops. Americans are dead, dozens of Iraqis killed too.
An arrest warrant issued for Muqtada Al-Sadr. This morning we ask Paul Bremer if the coalition will put the radical cleric behind bars.

And in Fallujah, insurgents refusing to go quietly. More U.S. Marines die in fighting there. All this morning on AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

HEMMER: All right, good morning. It's Tuesday. Good to have you with us today. Heidi Collins continues her duty here on AMERICAN MORNING, in for Soledad O'Brien this morning.

HEIDI COLLINS, CNN: It's a tough day, you know?

HEMMER: I'm telling you, but it's with us. You know, Cafferty and Hemmer. My gosh, two (UNINTELLIGIBLE).

How are you doing? Let's start.

(CROSSTALK)

JACK CAFFERTY, CNN ANCHOR: I'm not even awake yet.

COLLINS: Want to let you know the stories we're following.

We have, of course, been telling you for quite a while now about Thursday and the testimony in the 9/11 hearings from national security adviser Condoleezza Rice.

This morning Bob Kerrey, a former Democratic senator and member of the Commission, is with us. We'll talk about what questions he will ask, and what was said in previous private testimony.

HEMMER: A lot to cover there.

Also, the Jayson Williams trial now plunged into uncertainty. The judge puts that trial on hold for at least a week, again. Our Jeff Toobin talks this morning -- looking at how much trouble this trial could be in. We'll talk to Jeff about that in a moment.

COLLINS: Talking now to Jack again. Hi.

CAFFERTY: Hello again. Gee, it's been so long since we chatted.

Senator Edward Kennedy of Massachusetts, apparently relishing his role as John Kerry's attack dog in the campaign, unleashed a blistering attack against President Bush's speech yesterday, comparing Iraq to Vietnam. We'll take a look at that.

HEMMER: All right, Jack. Let's get to Iraq.

Again, a lot of news to cover there. That's where we start today. The recent surge in violence taking a deadly toll on U.S. forces.

The coalition said earlier today that three U.S. soldiers died yesterday in separate attacks in the northwestern part of Baghdad, and the U.S. military says four Marines also killed yesterday near Fallujah, where coalition forces conducting Operation Vigilant Resolve, that's the effort to root out insurgents in that town and find those responsible in a city of 300,000 for the deaths of four U.S. civilians last week.

Also, the Marines have sealed off roads in and out of Fallujah; they have fought gun battles there while probing some of the city's outer neighborhoods.

The military also says perhaps sixty Iraqis were killed last night in the Sadr City section of northeastern Baghdad. They died in firefights between U.S. troops and elements of Shiite Muslim cleric Muqtada Al-Sadr's private army.

Those clashes came hours after it was announced that an arrest warrant had been issued for the radical cleric. He's wanted in connection with the killing of a rival cleric just about a year ago. A few moments ago from Baghdad I talked about everything that's happening there with the U.S. administration Paul Bremer. I started asking him the question about the labeling of Muqtada Al-Sadr as an outlaw and why it's important to arrest this man now.

(BEGIN VIDEOTAPE)

PAUL BREMER, U.S. ADMINISTRATOR IN IRAQ: This is a guy who has a fundamentally inappropriate view of the new Iraq. He believes that in the new Iraq, like in the old Iraq, power should be to the guy who's got the guns, and that's an unacceptable vision for Iraq.

He's also guilty, or at least he's accused by an Iraqi judge, of orchestrating a terrible, bloody, heinous murder of one of the most respected religious leaders in Iraq back in April.

HEMMER: There are reports that he was hiding in a mosque. Some reports suggested he'd left that mosque just today. If that's the case, how will you get him?

BREMER: Well, I don't want to get into operational details of what we might be doing to try to bring him to justice. But I can tell you that we intend to continue after him, and we will bring him to justice.

HEMMER: Has this attention, Mr. Ambassador, just given rise to his own popularity and in turn just given rise to more Shiite violence?

BREMER: No. This is a man who has a view of getting power in Iraq, which has not been changed by the events of the last few days.

He's basically tried to take over the country. He has usurped authority in the holy city of Najaf; he and his colleagues have occupied police stations, government buildings around the country.

It's basically an effort to take over the country. It represents a fundamental challenge to the concept of the rule of law in Iraq, and it will not stand.

HEMMER: There are reports that up to 60 Iraqis may have been killed in Sadr City on Monday night. The U.S. military took causalities as well. What's happening in that city today, sir?

BREMER: It is -- it has so far been quiet over there today. We have retaken the police stations that were taken over by these thugs yesterday, and we have taken over the building that they were illegally occupying, over which they were running their party.

HEMMER: From this side of the world, from Sadr City to Najaf to Fallujah, it appears to be in many ways a country in chaos.

Can you reassure the American people that the coalition headed up by the Americans today in Iraq do have control of that country?

BREMER: Absolutely. There is no question we have control of the country.

Of course, I know if you just report on those few places, it does look chaotic. Actually, if you travel around the country -- and I was up north on two different trips last week, what you find is a bustling economy -- people driving around, people opening businesses right and left, unemployment is dropped to below ten percent in the three major cities of the country.

It was over 60 percent at liberation. So, the economy is moving, reconstruction projects are going forward all across the country some 18,000 have been completed already.

The story of the house that doesn't burn down is not much of a story in the news. The story of the house that's on fire is the story you get.

HEMMER: What about the handover come June 30? In this country there's a lot of criticism from senators -- Republicans Democrats alike. Senators McCain, Biden, Lugar. They say there is no plan put forward yet for the handover come June 30. If there is a plan sir, what is it?

BREMER: Well, there is a plan. It's rather carefully laid out in two documents one that was signed by the governing council November 15 another that was included in the interim constitution signed on March 8.

The plan is to follow a pattern of broad consultations, which have been begun. The secretary general of the U.N.'s special representative has been here now for five days. He's conducting those consultations as we are.

And we are determining the size and shape of the interim government. It will be in place well before June 30, and we will pass sovereignty to that interim government as scheduled.

HEMMER: Finally, on the military side, are more forces needed in Iraq and if so, where would they serve?

BREMER: You know, I've made it a pretty strict habit not to comment on troop strength because, frankly, I don't consider myself qualified. I'm not a military expert.

I do know this, that I've gone around and talked to brigade commanders, division commanders, battalion commanders, over the past ten months. I've asked the question. I've never had one tell me he needed more troops, but this is really a matter for the commanding general, for General Sanchez and his superiors to make recommendations if they need to the Secretary of Defense and the president.

And it's really not -- not something I get into.

(END VIDEOTAPE)

HEMMER: U.S. administrator -- the Ambassador Paul Bremer from Baghdad a few moments ago.

In a moment here we'll talk to a Pulitzer Prize-winning journalist in Iraq since well before the war started more than a year ago.

Also this morning, throughout our show today, more conversations regarding Iraq with a number of U.S. senators deeply involved in what is happening in that country. Now Heidi.

COLLINS: Want to get you up to speed on other news this morning.

The American Civil Liberties Union is expected to file a class action lawsuit on behalf of airline passengers today.

The ACLU claims some people are mistakenly put on the no-fly list compiled by the Transportation Security Administration. Travelers on the list are barred from flying because they are considered a threat.

The TSA acknowledges there have been some problems with the name- matching technology but says it has worked to help people wrongly identified.

A group of U.S. soldiers is being tested for possible uranium contamination. A military spokeswoman says up to six soldiers have already been examined at Fort Dix, New Jersey, and three remain under observation.

A New York newspaper requested the test for nine National Guard members who said the U.S. Army refused to examine them. The soldiers complained of illness after reportedly being exposed to depleted uranium in Iraq.

Police in Connecticut arrested about a dozen people after some March Madness from UConn fans.

The celebration of the team's second NCAA title in six seasons got rowdy and some fans started fires and overturned cars.

University police said there were no serious injuries. The Huskies had a pretty easy game, if you watched it last night, with some big leads as they beat Georgia Tech 82-73, and the UConn women's team plays tonight for the title.

Flood warnings remain in effect in parts of Texas at least five people died in an accident on a (UNINTELLIGIBLE) after a bridge had been washed out near Pecos throughout west and south Texas residents battled high waters and hailstorms.

HEMMER: It's compulsory, isn't it, to overturn a car after you win a national championship? I think it's like required reading, isn't it, for college students? Hopefully no one got hurt there.

(WEATHER REPORT)

HEMMER: In a moment here, what will that Commission ask Condoleezza Rice on Thursday? A Commission member, the former senator Bob Kerrey, is our guest live here in New York in a moment on that topic.

COLLINS: And Boston archdiocese settles lawsuits over alleged sexual abuse by a priest. We're going to have the latest on that as well coming up.

HEMMER: And from the red planet one Mars Rover wraps up one mission, the other just keeps on roving along. Back in a moment on a Tuesday edition of AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Condoleezza Rice testifies before that panel Thursday morning, 9 a.m. Eastern time, a move the White House initially opposed but later agreed to in the face of strong public criticism.

The president who will sit down privately with that Commission had this to say about Rice's testimony just yesterday.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm looking forward to the conversation, I'm looking forward to Condi testifying, and I made a decision to allow her to do so because I was assured that it would not jeopardize executive privilege and she'll be great. She's a very smart, capable person who knows exactly what took place and will lay out the facts and that's what the Commission's job is meant to do, and that's what the American people want to see.

(END VIDEO CLIP)

HEMMER: So then two days away, what can we expect during Rice's testimony? Bob Kerrey is a former Democratic senator and member of the 9/11 Commission, our guest back here on AMERICAN MORNING.

Nice to see you in person yet again.

BOB KERREY, 9/11 COMMISSIONER: Nice to see you, Bill.

HEMMER: Good to have you in New York City. Your Commission interview with Condoleezza Rice back in February, four hours, in fact. What did you not learn then that you need to learn now?

KERREY: Well, it isn't especially what we didn't learn, it's that we need to get her statement under oath and we need to have a public statement in order to be able to get the complete picture out in front of the public.

We'll produce a report, but it's very important for the public to hear these statements as much as possible, especially from someone who was at the nexus not just in foreign policy decisions but also domestic decisions to keep the United States of America...

HEMMER: Well, let me stop you there. Since that interview in February and since the testimony you had a week and a half ago. Have the facts changed in your mind as to what was known before 9/11?

KERREY: Well, I don't think the facts have changed, but what we understand about the facts has certainly changed.

I mean it has in my case. I mean, I don't have anything sort of earth shattering that I would like to ask Dr. Rice that's come as a consequence of things that I've learned since then, but the more I read documents and the more I understand the depth and the breadth of this conspiracy, yes, I would say that I have a different picture seems to have emerged almost weekly as I learn more about it.

HEMMER: Almost weekly, huh?

KERREY: Yes. I mean it's a fairly -- this is a declaration of war against the United States -- it was February 23, 1998, and the only military effort that we had against then was 20 August 1998 after they attacked our two embassies in Tanzania and Kenya and killed over 250 people.

They attacked the Cole on the 12th of October in 2000 and we intercepted an attack on the Sullivan earlier that year.

We intercepted an attacked on LAX in December 1999, we intercepted an attack on a hotel that was frequented by Americans in Amman, Jordan. I mean, they were executing very sophisticated military operations and the military operation against us on 11 September 2001 was a very sophisticated. $350,000 and these 19 men were able to defeat utterly every single defensive mechanism the United States of America had up after a summer of extreme...

HEMMER: I heard you say the same thing yesterday. Why did the U.S. not declare war on an organization that declared war on the U.S.?

When back to August of 1998; was that the biggest mistake do you believe?

KERREY: Well it's a question that I've been asking the people in the Clinton administration and as well as the Bush administration and certainly a question that I will ask Dr. Rice as well.

My only answer is that it's difficult to do. It's a new world. We're used to having nations declare war on us, not nation state actors. And I suspect that there was an argument that said look they're 8,000 miles away, he's very isolated in Afghanistan, what harm can he do us.

The problem is he had a demonstration of the harm that he could do us at Darussalam and Nairobi, we had a demonstration of what he could do at the Cole, we had a demonstration of what he could do with Mr. Rosam (ph) when we intercepted them coming across the border near Seattle in December of 1999 and we knew that there were al Qaeda cells inside the United States.

So at the very least if you're not going to declare war, at least do those things necessary to keep the people safe.

HEMMER: That takes me to my next point. Thomas Friedman wrote a piece in "The New York Times" back on the 20th of March, just a week ago. He said, and I'll put it on the screen: "I did not listen to one second of the 9/11 hearings. I made up my mind about that event a long time ago: it was not a failure of intelligence; it was a failure of imagination. We could have had perfect intelligence on all the key pieces of 9/11, but the fact is we lacked people with evil enough imaginations to put those pieces together."

Does that go to your point also?

KERREY: No, I disagree with that. I disagree with that and I also -- I wish he had watched the Commission hearings and I hope he reads the report.

This is a very sophisticated military operation against the United States. They had illegal documents to get inside the United States. They were inside the United States and they INS should have known that they had overstayed their welcome here.

They had been identified, we had the famous Phoenix memo, Moussaui in Minneapolis had been arrested, and we had a lot of things that had come together to indicate that the United States of America was at risk. I mean, we were surprised, Bill, by a hijacking on 11 September. You can listen to this horrible tape that we heard of a woman -- a flight attendant -- when she called to ground station -- they thought that she was dealing with a passenger who had gone nuts.

They were surprised by a hijacking let alone a multiple hijacking, let alone a suicide hijacking. All of which should not have been a surprise to people who were defending America.

HEMMER: I have ten seconds here. What's more critical for you? Condoleezza Rice's testimony or the private testimony you will get from President Bush, Vice-President Cheney, President Clinton and Vice-President Gore?

KERREY: Well I think it all -- I don't know. I mean, I -- which is more important? Probably Dr. Rice's because she was at the nexus of so much during 2001, but it's the whole picture, it's not -- I hope that we don't just focus on Dr. Rice.

HEMMER: Thank you, Senator. Good to see you. Bob Kerrey, we'll be listening on Thursday morning, certainly.

Our special coverage starts on CNN 9 a.m. Eastern time on Thursday morning -- live coverage of Condoleezza Rice's testimony. We will be in Washington for that then. Now Heidi.

COLLINS: Boston's Roman Catholic archdiocese has settled lawsuits by four men who claim they were sexually abused by a priest.

The four men say they were abused by Rev. Paul Shanley seen here. The four will reportedly get more than the maximum $300,000 awarded in last year's landmark settlement between the church and over 550 people.

This is what the spokesman for the archdiocese had to say about the latest settlement.

(BEGIN VIDEO CLIP)

FATHER CHRIS COYNE, ARCHDIOCESE OF BOSTON: I think we're glad that we were able to come to a settlement with the families, but we also are very much still saddened by what happened and recognize that what happened was a tragedy and a crime and terrible for the children and their families and for the people in the Church and that we're committed to doing everything that we can to make sure this never happens again.

(END VIDEO CLIP)

COLLINS: Reverend Shanley is still awaiting a criminal trial in connection with the abuse claims.

HEMMER: Now 20 minutes past the hour. In a moment here, more troops die in Iraq today. Live at Baghdad to find out who's leading the fight against coalition forces there.

Also, thousands of job cuts ahead at one U.S. company. Andy has details when we continue in a moment. Here back with Andy and Jack after this.

(COMMERCIAL BREAK)

COLLINS: A majority of U.S. firms aren't paying their taxes, while thousands of job cuts are coming at one U.S. company, and it's opening day for earnings season that is.

Here with it all is Andy Serwer, "Minding Your Business."

ANDY SERWER, "FORTUNE" MAGAZINE: That sounds exhausting.

COLLINS: Yes.

SERWER: OK, I'm going to take that -- listen, have you got your taxes done yet?

COLLINS: Yes, of course.

SERWER: Good, all right, well then this will really get your goat.

A new study out by the General Accounting Office showing that corporations -- a majority of U.S. corporations not paying any taxes at all -- this last couple of years even as the economy boomed up to 2000. Here's the tale of the tape.

Sixty-one percent of U.S. corporations paying zip corporate taxes, and then foreign companies in the U.S. doing business even worse, 71 percent not paying any.

Total tax receipts, Heidi, only paid by about 7.4 percent. In other words, total tax receipts paid the share paid by corporations only 7.4 percent. That's the lowest since 1983. The second lowest since the 1930s.

You know this is the kind of thing that tics people off. And I'll tell you something, it's a bipartisan whipping boy, because of course the Democrats are seizing on it, but Republicans are saying, hey it ain't us either. It's the IRS's fault and we gotta get this thing fixed, so...

COLLINS: The whole structure is kind of set up to do this.

SERWER: Right, well that's right. And what's going on here are loopholes and their consulting companies in the tax firms and corporations had to do this, and it's very complicated stuff, but you can see the result and it's really kind of shameful, isn't it?

COLLINS: Yes, I would imagine so. Sixty percent, that's unbelievable.

SERWER: Yes, it really is.

COLLINS: All right, what's happening at Bank of America?

SERWER: Well, you know, on Friday, of course, we talked about job creation and here we're having a little bit of taketh away time. Bank of America merging with Fleet, and we're going to start this month in the hole, because the company announcing that it'll be shedding 12,000 jobs as these two big banks merge.

So that's not great stuff. Talking about earnings season here -- quickly as you mentioned it is starting up. That time again. Kellogg's raising its estimate saying things are going pretty well for the company.

Alcoa is going to kick the party off, though, this evening, that is the first major company to report, and so far a lot of optimism out there as you've seen, a lot of CEOs suggesting that the economy is picking up.

COLLINS: Like to hear that.

SERWER: Good.

COLLINS: All right, Andy thanks.

HEMMER: Here's Jack.

CAFFERTY: Good morning. Senator Edward Kennedy of Massachusetts made a blistering speech yesterday to a Washington think tank attacking President Bush and comparing Iraq to Vietnam.

(BEGIN VIDEO CLIP)

SEN. TED KENNEDY (D) MASSACHUSETTS: Iraq is George Bush's Vietnam, and this country needs a new president.

(END VIDEO CLIP)

CAFFERTY: Senator Kennedy charged President Bush's credibility is no better than that of Richard Nixon. Interesting, Senator Kennedy talking about somebody else's credibility.

And the senator claimed that the Bush administration repeatedly invents facts to support its pre-conceived agenda. Our question is this: do you agree with Senator Kennedy that Iraq is President Bush's Vietnam? The e-mail address is am@cnn.com.

HEMMER: Heck of a question there, huh?

CAFFERTY: Credibility.

HEMMER: Thank you, Jack. In a moment here, U.S. forces set for the next move of Operation Vigilant Resolve. This around the town of Fallujah.

We are told all the roads in and out of that town are sealed. That town of 300,000 -- how do you find the insurgents inside? Details in a moment when we continue right after this on AMERICAN MORNING.

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

Aired April 6, 2004 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. Deadly fighting across Iraq today. A private militia in a firefight with U.S. troops. Americans are dead, dozens of Iraqis killed too.
An arrest warrant issued for Muqtada Al-Sadr. This morning we ask Paul Bremer if the coalition will put the radical cleric behind bars.

And in Fallujah, insurgents refusing to go quietly. More U.S. Marines die in fighting there. All this morning on AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

HEMMER: All right, good morning. It's Tuesday. Good to have you with us today. Heidi Collins continues her duty here on AMERICAN MORNING, in for Soledad O'Brien this morning.

HEIDI COLLINS, CNN: It's a tough day, you know?

HEMMER: I'm telling you, but it's with us. You know, Cafferty and Hemmer. My gosh, two (UNINTELLIGIBLE).

How are you doing? Let's start.

(CROSSTALK)

JACK CAFFERTY, CNN ANCHOR: I'm not even awake yet.

COLLINS: Want to let you know the stories we're following.

We have, of course, been telling you for quite a while now about Thursday and the testimony in the 9/11 hearings from national security adviser Condoleezza Rice.

This morning Bob Kerrey, a former Democratic senator and member of the Commission, is with us. We'll talk about what questions he will ask, and what was said in previous private testimony.

HEMMER: A lot to cover there.

Also, the Jayson Williams trial now plunged into uncertainty. The judge puts that trial on hold for at least a week, again. Our Jeff Toobin talks this morning -- looking at how much trouble this trial could be in. We'll talk to Jeff about that in a moment.

COLLINS: Talking now to Jack again. Hi.

CAFFERTY: Hello again. Gee, it's been so long since we chatted.

Senator Edward Kennedy of Massachusetts, apparently relishing his role as John Kerry's attack dog in the campaign, unleashed a blistering attack against President Bush's speech yesterday, comparing Iraq to Vietnam. We'll take a look at that.

HEMMER: All right, Jack. Let's get to Iraq.

Again, a lot of news to cover there. That's where we start today. The recent surge in violence taking a deadly toll on U.S. forces.

The coalition said earlier today that three U.S. soldiers died yesterday in separate attacks in the northwestern part of Baghdad, and the U.S. military says four Marines also killed yesterday near Fallujah, where coalition forces conducting Operation Vigilant Resolve, that's the effort to root out insurgents in that town and find those responsible in a city of 300,000 for the deaths of four U.S. civilians last week.

Also, the Marines have sealed off roads in and out of Fallujah; they have fought gun battles there while probing some of the city's outer neighborhoods.

The military also says perhaps sixty Iraqis were killed last night in the Sadr City section of northeastern Baghdad. They died in firefights between U.S. troops and elements of Shiite Muslim cleric Muqtada Al-Sadr's private army.

Those clashes came hours after it was announced that an arrest warrant had been issued for the radical cleric. He's wanted in connection with the killing of a rival cleric just about a year ago. A few moments ago from Baghdad I talked about everything that's happening there with the U.S. administration Paul Bremer. I started asking him the question about the labeling of Muqtada Al-Sadr as an outlaw and why it's important to arrest this man now.

(BEGIN VIDEOTAPE)

PAUL BREMER, U.S. ADMINISTRATOR IN IRAQ: This is a guy who has a fundamentally inappropriate view of the new Iraq. He believes that in the new Iraq, like in the old Iraq, power should be to the guy who's got the guns, and that's an unacceptable vision for Iraq.

He's also guilty, or at least he's accused by an Iraqi judge, of orchestrating a terrible, bloody, heinous murder of one of the most respected religious leaders in Iraq back in April.

HEMMER: There are reports that he was hiding in a mosque. Some reports suggested he'd left that mosque just today. If that's the case, how will you get him?

BREMER: Well, I don't want to get into operational details of what we might be doing to try to bring him to justice. But I can tell you that we intend to continue after him, and we will bring him to justice.

HEMMER: Has this attention, Mr. Ambassador, just given rise to his own popularity and in turn just given rise to more Shiite violence?

BREMER: No. This is a man who has a view of getting power in Iraq, which has not been changed by the events of the last few days.

He's basically tried to take over the country. He has usurped authority in the holy city of Najaf; he and his colleagues have occupied police stations, government buildings around the country.

It's basically an effort to take over the country. It represents a fundamental challenge to the concept of the rule of law in Iraq, and it will not stand.

HEMMER: There are reports that up to 60 Iraqis may have been killed in Sadr City on Monday night. The U.S. military took causalities as well. What's happening in that city today, sir?

BREMER: It is -- it has so far been quiet over there today. We have retaken the police stations that were taken over by these thugs yesterday, and we have taken over the building that they were illegally occupying, over which they were running their party.

HEMMER: From this side of the world, from Sadr City to Najaf to Fallujah, it appears to be in many ways a country in chaos.

Can you reassure the American people that the coalition headed up by the Americans today in Iraq do have control of that country?

BREMER: Absolutely. There is no question we have control of the country.

Of course, I know if you just report on those few places, it does look chaotic. Actually, if you travel around the country -- and I was up north on two different trips last week, what you find is a bustling economy -- people driving around, people opening businesses right and left, unemployment is dropped to below ten percent in the three major cities of the country.

It was over 60 percent at liberation. So, the economy is moving, reconstruction projects are going forward all across the country some 18,000 have been completed already.

The story of the house that doesn't burn down is not much of a story in the news. The story of the house that's on fire is the story you get.

HEMMER: What about the handover come June 30? In this country there's a lot of criticism from senators -- Republicans Democrats alike. Senators McCain, Biden, Lugar. They say there is no plan put forward yet for the handover come June 30. If there is a plan sir, what is it?

BREMER: Well, there is a plan. It's rather carefully laid out in two documents one that was signed by the governing council November 15 another that was included in the interim constitution signed on March 8.

The plan is to follow a pattern of broad consultations, which have been begun. The secretary general of the U.N.'s special representative has been here now for five days. He's conducting those consultations as we are.

And we are determining the size and shape of the interim government. It will be in place well before June 30, and we will pass sovereignty to that interim government as scheduled.

HEMMER: Finally, on the military side, are more forces needed in Iraq and if so, where would they serve?

BREMER: You know, I've made it a pretty strict habit not to comment on troop strength because, frankly, I don't consider myself qualified. I'm not a military expert.

I do know this, that I've gone around and talked to brigade commanders, division commanders, battalion commanders, over the past ten months. I've asked the question. I've never had one tell me he needed more troops, but this is really a matter for the commanding general, for General Sanchez and his superiors to make recommendations if they need to the Secretary of Defense and the president.

And it's really not -- not something I get into.

(END VIDEOTAPE)

HEMMER: U.S. administrator -- the Ambassador Paul Bremer from Baghdad a few moments ago.

In a moment here we'll talk to a Pulitzer Prize-winning journalist in Iraq since well before the war started more than a year ago.

Also this morning, throughout our show today, more conversations regarding Iraq with a number of U.S. senators deeply involved in what is happening in that country. Now Heidi.

COLLINS: Want to get you up to speed on other news this morning.

The American Civil Liberties Union is expected to file a class action lawsuit on behalf of airline passengers today.

The ACLU claims some people are mistakenly put on the no-fly list compiled by the Transportation Security Administration. Travelers on the list are barred from flying because they are considered a threat.

The TSA acknowledges there have been some problems with the name- matching technology but says it has worked to help people wrongly identified.

A group of U.S. soldiers is being tested for possible uranium contamination. A military spokeswoman says up to six soldiers have already been examined at Fort Dix, New Jersey, and three remain under observation.

A New York newspaper requested the test for nine National Guard members who said the U.S. Army refused to examine them. The soldiers complained of illness after reportedly being exposed to depleted uranium in Iraq.

Police in Connecticut arrested about a dozen people after some March Madness from UConn fans.

The celebration of the team's second NCAA title in six seasons got rowdy and some fans started fires and overturned cars.

University police said there were no serious injuries. The Huskies had a pretty easy game, if you watched it last night, with some big leads as they beat Georgia Tech 82-73, and the UConn women's team plays tonight for the title.

Flood warnings remain in effect in parts of Texas at least five people died in an accident on a (UNINTELLIGIBLE) after a bridge had been washed out near Pecos throughout west and south Texas residents battled high waters and hailstorms.

HEMMER: It's compulsory, isn't it, to overturn a car after you win a national championship? I think it's like required reading, isn't it, for college students? Hopefully no one got hurt there.

(WEATHER REPORT)

HEMMER: In a moment here, what will that Commission ask Condoleezza Rice on Thursday? A Commission member, the former senator Bob Kerrey, is our guest live here in New York in a moment on that topic.

COLLINS: And Boston archdiocese settles lawsuits over alleged sexual abuse by a priest. We're going to have the latest on that as well coming up.

HEMMER: And from the red planet one Mars Rover wraps up one mission, the other just keeps on roving along. Back in a moment on a Tuesday edition of AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Condoleezza Rice testifies before that panel Thursday morning, 9 a.m. Eastern time, a move the White House initially opposed but later agreed to in the face of strong public criticism.

The president who will sit down privately with that Commission had this to say about Rice's testimony just yesterday.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm looking forward to the conversation, I'm looking forward to Condi testifying, and I made a decision to allow her to do so because I was assured that it would not jeopardize executive privilege and she'll be great. She's a very smart, capable person who knows exactly what took place and will lay out the facts and that's what the Commission's job is meant to do, and that's what the American people want to see.

(END VIDEO CLIP)

HEMMER: So then two days away, what can we expect during Rice's testimony? Bob Kerrey is a former Democratic senator and member of the 9/11 Commission, our guest back here on AMERICAN MORNING.

Nice to see you in person yet again.

BOB KERREY, 9/11 COMMISSIONER: Nice to see you, Bill.

HEMMER: Good to have you in New York City. Your Commission interview with Condoleezza Rice back in February, four hours, in fact. What did you not learn then that you need to learn now?

KERREY: Well, it isn't especially what we didn't learn, it's that we need to get her statement under oath and we need to have a public statement in order to be able to get the complete picture out in front of the public.

We'll produce a report, but it's very important for the public to hear these statements as much as possible, especially from someone who was at the nexus not just in foreign policy decisions but also domestic decisions to keep the United States of America...

HEMMER: Well, let me stop you there. Since that interview in February and since the testimony you had a week and a half ago. Have the facts changed in your mind as to what was known before 9/11?

KERREY: Well, I don't think the facts have changed, but what we understand about the facts has certainly changed.

I mean it has in my case. I mean, I don't have anything sort of earth shattering that I would like to ask Dr. Rice that's come as a consequence of things that I've learned since then, but the more I read documents and the more I understand the depth and the breadth of this conspiracy, yes, I would say that I have a different picture seems to have emerged almost weekly as I learn more about it.

HEMMER: Almost weekly, huh?

KERREY: Yes. I mean it's a fairly -- this is a declaration of war against the United States -- it was February 23, 1998, and the only military effort that we had against then was 20 August 1998 after they attacked our two embassies in Tanzania and Kenya and killed over 250 people.

They attacked the Cole on the 12th of October in 2000 and we intercepted an attack on the Sullivan earlier that year.

We intercepted an attacked on LAX in December 1999, we intercepted an attack on a hotel that was frequented by Americans in Amman, Jordan. I mean, they were executing very sophisticated military operations and the military operation against us on 11 September 2001 was a very sophisticated. $350,000 and these 19 men were able to defeat utterly every single defensive mechanism the United States of America had up after a summer of extreme...

HEMMER: I heard you say the same thing yesterday. Why did the U.S. not declare war on an organization that declared war on the U.S.?

When back to August of 1998; was that the biggest mistake do you believe?

KERREY: Well it's a question that I've been asking the people in the Clinton administration and as well as the Bush administration and certainly a question that I will ask Dr. Rice as well.

My only answer is that it's difficult to do. It's a new world. We're used to having nations declare war on us, not nation state actors. And I suspect that there was an argument that said look they're 8,000 miles away, he's very isolated in Afghanistan, what harm can he do us.

The problem is he had a demonstration of the harm that he could do us at Darussalam and Nairobi, we had a demonstration of what he could do at the Cole, we had a demonstration of what he could do with Mr. Rosam (ph) when we intercepted them coming across the border near Seattle in December of 1999 and we knew that there were al Qaeda cells inside the United States.

So at the very least if you're not going to declare war, at least do those things necessary to keep the people safe.

HEMMER: That takes me to my next point. Thomas Friedman wrote a piece in "The New York Times" back on the 20th of March, just a week ago. He said, and I'll put it on the screen: "I did not listen to one second of the 9/11 hearings. I made up my mind about that event a long time ago: it was not a failure of intelligence; it was a failure of imagination. We could have had perfect intelligence on all the key pieces of 9/11, but the fact is we lacked people with evil enough imaginations to put those pieces together."

Does that go to your point also?

KERREY: No, I disagree with that. I disagree with that and I also -- I wish he had watched the Commission hearings and I hope he reads the report.

This is a very sophisticated military operation against the United States. They had illegal documents to get inside the United States. They were inside the United States and they INS should have known that they had overstayed their welcome here.

They had been identified, we had the famous Phoenix memo, Moussaui in Minneapolis had been arrested, and we had a lot of things that had come together to indicate that the United States of America was at risk. I mean, we were surprised, Bill, by a hijacking on 11 September. You can listen to this horrible tape that we heard of a woman -- a flight attendant -- when she called to ground station -- they thought that she was dealing with a passenger who had gone nuts.

They were surprised by a hijacking let alone a multiple hijacking, let alone a suicide hijacking. All of which should not have been a surprise to people who were defending America.

HEMMER: I have ten seconds here. What's more critical for you? Condoleezza Rice's testimony or the private testimony you will get from President Bush, Vice-President Cheney, President Clinton and Vice-President Gore?

KERREY: Well I think it all -- I don't know. I mean, I -- which is more important? Probably Dr. Rice's because she was at the nexus of so much during 2001, but it's the whole picture, it's not -- I hope that we don't just focus on Dr. Rice.

HEMMER: Thank you, Senator. Good to see you. Bob Kerrey, we'll be listening on Thursday morning, certainly.

Our special coverage starts on CNN 9 a.m. Eastern time on Thursday morning -- live coverage of Condoleezza Rice's testimony. We will be in Washington for that then. Now Heidi.

COLLINS: Boston's Roman Catholic archdiocese has settled lawsuits by four men who claim they were sexually abused by a priest.

The four men say they were abused by Rev. Paul Shanley seen here. The four will reportedly get more than the maximum $300,000 awarded in last year's landmark settlement between the church and over 550 people.

This is what the spokesman for the archdiocese had to say about the latest settlement.

(BEGIN VIDEO CLIP)

FATHER CHRIS COYNE, ARCHDIOCESE OF BOSTON: I think we're glad that we were able to come to a settlement with the families, but we also are very much still saddened by what happened and recognize that what happened was a tragedy and a crime and terrible for the children and their families and for the people in the Church and that we're committed to doing everything that we can to make sure this never happens again.

(END VIDEO CLIP)

COLLINS: Reverend Shanley is still awaiting a criminal trial in connection with the abuse claims.

HEMMER: Now 20 minutes past the hour. In a moment here, more troops die in Iraq today. Live at Baghdad to find out who's leading the fight against coalition forces there.

Also, thousands of job cuts ahead at one U.S. company. Andy has details when we continue in a moment. Here back with Andy and Jack after this.

(COMMERCIAL BREAK)

COLLINS: A majority of U.S. firms aren't paying their taxes, while thousands of job cuts are coming at one U.S. company, and it's opening day for earnings season that is.

Here with it all is Andy Serwer, "Minding Your Business."

ANDY SERWER, "FORTUNE" MAGAZINE: That sounds exhausting.

COLLINS: Yes.

SERWER: OK, I'm going to take that -- listen, have you got your taxes done yet?

COLLINS: Yes, of course.

SERWER: Good, all right, well then this will really get your goat.

A new study out by the General Accounting Office showing that corporations -- a majority of U.S. corporations not paying any taxes at all -- this last couple of years even as the economy boomed up to 2000. Here's the tale of the tape.

Sixty-one percent of U.S. corporations paying zip corporate taxes, and then foreign companies in the U.S. doing business even worse, 71 percent not paying any.

Total tax receipts, Heidi, only paid by about 7.4 percent. In other words, total tax receipts paid the share paid by corporations only 7.4 percent. That's the lowest since 1983. The second lowest since the 1930s.

You know this is the kind of thing that tics people off. And I'll tell you something, it's a bipartisan whipping boy, because of course the Democrats are seizing on it, but Republicans are saying, hey it ain't us either. It's the IRS's fault and we gotta get this thing fixed, so...

COLLINS: The whole structure is kind of set up to do this.

SERWER: Right, well that's right. And what's going on here are loopholes and their consulting companies in the tax firms and corporations had to do this, and it's very complicated stuff, but you can see the result and it's really kind of shameful, isn't it?

COLLINS: Yes, I would imagine so. Sixty percent, that's unbelievable.

SERWER: Yes, it really is.

COLLINS: All right, what's happening at Bank of America?

SERWER: Well, you know, on Friday, of course, we talked about job creation and here we're having a little bit of taketh away time. Bank of America merging with Fleet, and we're going to start this month in the hole, because the company announcing that it'll be shedding 12,000 jobs as these two big banks merge.

So that's not great stuff. Talking about earnings season here -- quickly as you mentioned it is starting up. That time again. Kellogg's raising its estimate saying things are going pretty well for the company.

Alcoa is going to kick the party off, though, this evening, that is the first major company to report, and so far a lot of optimism out there as you've seen, a lot of CEOs suggesting that the economy is picking up.

COLLINS: Like to hear that.

SERWER: Good.

COLLINS: All right, Andy thanks.

HEMMER: Here's Jack.

CAFFERTY: Good morning. Senator Edward Kennedy of Massachusetts made a blistering speech yesterday to a Washington think tank attacking President Bush and comparing Iraq to Vietnam.

(BEGIN VIDEO CLIP)

SEN. TED KENNEDY (D) MASSACHUSETTS: Iraq is George Bush's Vietnam, and this country needs a new president.

(END VIDEO CLIP)

CAFFERTY: Senator Kennedy charged President Bush's credibility is no better than that of Richard Nixon. Interesting, Senator Kennedy talking about somebody else's credibility.

And the senator claimed that the Bush administration repeatedly invents facts to support its pre-conceived agenda. Our question is this: do you agree with Senator Kennedy that Iraq is President Bush's Vietnam? The e-mail address is am@cnn.com.

HEMMER: Heck of a question there, huh?

CAFFERTY: Credibility.

HEMMER: Thank you, Jack. In a moment here, U.S. forces set for the next move of Operation Vigilant Resolve. This around the town of Fallujah.

We are told all the roads in and out of that town are sealed. That town of 300,000 -- how do you find the insurgents inside? Details in a moment when we continue right after this on AMERICAN MORNING.

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