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American Morning

U.S. Soldiers Charged; Siberian Plane Crash; Amazing Rescue; North Korea Threat; Britain Terror Level

Aired July 10, 2006 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

MILES O'BRIEN, CNN ANCHOR: Good morning to you, Monday, July 10. I'm Miles O'Brien.
MELISSA LONG, CNN ANCHOR: And good morning. I'm Melissa Long in today for Soledad.

Here's a look at what's happening this morning.

O'BRIEN: The U.S. point person on North Korea nuclear talks today is in Tokyo today. Christopher Hill is meeting with Japanese officials to discuss North Korea's missile tests. U.N. Security Council to consider sanctions against North Korea today.

LONG: Congress gets back to business this morning after a break last week for the Fourth of July holiday. On tap for the Senate, a $32.8 billion spending bill for homeland security.

O'BRIEN: Also this morning, Henry Paulson to be sworn in as the new U.S. Treasury Secretary. Paulson is the former CEO of the Wall Street investment firm Goldman Sachs.

LONG: In Phoenix this morning, police think they have a third serial criminal on their hands. They say one person may be responsible for 13 shootings, including one over the weekend. They are already searching for a serial rapist and someone who shot and killed four people.

O'BRIEN: Pueblo, Colorado, an eight-mile stretch of Interstate 25 back open now after severe flooding forced its shutdown yesterday. The Pueblo area got about three to four inches of rain. A tornado also spotted there.

Time for a check of the forecast.

Chad Myers, good morning to you.

LONG: Morning.

CHAD MYERS, CNN METEOROLOGIST: And good morning.

(WEATHER REPORT)

Back to you guys in New York.

O'BRIEN: Thank you very much, Chad. In Iraq, escalating tit-for-tat sectarian violence. A car bombing in a Shiite neighborhood of Baghdad today killing five. Apparent retaliation for the slaughter of more than 40 unarmed Sunnis in western Baghdad yesterday. The victims dragged from their homes and executed in the street. The violence apparently triggered by the bombing of a Sunni mosque on Friday. That prompted a Shiite mosque bombing on Saturday.

Nine months after it began the Saddam Hussein trial entering the final phase. Defense attorneys set to begin closing arguments today. The former Iraqi dictator, seven of his cohorts, are on trial for the massacre of more than 140 Shiites in the town of Dujail in 1982. If convicted, Hussein and the others face the gallows.

The Pentagon has charged four more U.S. soldiers in the rape of an Iraqi teenager and the murder of her and her family. A discharged soldier is charged with rape and murder in a civilian court already. But for the Iraqis, this may not be enough. Prime Minister Nuri al- Maliki is demanding an independent investigation.

CNN's Nic Robertson live now from Baghdad with more -- Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Miles.

We know that the four soldiers have been confined to their base. We know that whenever they move around on their base they always have an escort. They've had their weapons taken away from them.

There is a fifth soldier who's also been charged in connection with them for dereliction of duty from -- with -- essentially withholding information from senior officers about what he knew had happened. The four soldiers charged with the rape and murder of a young Iraqi woman, also the murder of three of her family members.

This -- the court -- they accused of conspiring with former Private First Class Steven Green who is faced similar -- facing similar charges in a civilian court in the United States at the moment.

Now the -- there is a question about the age of the young girl involved here, was she a young girl or was she a young woman? The Reuters News Agency has obtained documents it believes to be her identification papers, which indicate at the time of her killing she would have been 14 years old. The mayor of the town believes, of Mahmoudiya where the incident took place, believes that is her age.

There is confusion and concern and an investigation in the military and in the FBI, at the moment, who believe the young woman may have been between 20 and 25 -- Miles.

O'BRIEN: Nic, tell us this, is it possible the bodies will be exhumed?

ROBERTSON: It seems that perhaps this is going to be the way that the age of this young woman, or girl, and this would obviously be pertinent to the trials here of these young soldiers, her age is important. And it would seem to be that this is the likely best scientific way to determine her age at the time of her death and exactly how she was killed.

Now under Islamic law, it is a duty to exhume a body if the justice is not being done for that person. And in this case it would seem under Islamic law, as has been explained to us here in Baghdad, it would be right to exhume her body. However, there are indications that some may try and get some political gain out of doing that -- Miles.

O'BRIEN: Nic Robertson in Baghdad, thank you very much.

The U.S. Marine killings at Haditha, meanwhile, prompting calls to hold officers up the chain of command accountable. A Pentagon report says senior leaders did not sufficiently or adequately investigate the killings of two dozen civilians last November. U.S. Marines suspected of killing them in revenge for the death of a fellow Marine. A Defense Department official is saying commanders recommend more review of the chain of command. That could lead to reprimands or even charges against senior officers.

A CNN "Security Watch" now. More now on that plot to blow up a tunnel connecting New York and New Jersey. Authorities searching the alleged mastermind's computer in Lebanon say they found bombing plans and maps of the Hudson River tunnels.

Meanwhile, two senators are using that incident to propose amendments today to a homeland security spending bill. They want more money for mass transit safety and that's based on real threat levels to real targets.

(BEGIN VIDEO CLIP)

SEN. ROBERT MENENDEZ (D), NEW JERSEY: It seems that from half away -- a world away they know the infrastructure, they know the landmarks, they know the targets that Secretary Chertoff seems to be unaware of.

(END VIDEO CLIP)

O'BRIEN: Stay tuned to CNN day and night for the most reliable news about your security -- Melissa.

LONG: A deadly plane crash overnight in Pakistan to tell you about today. All 45 passengers and crew were killed. The Pakistan International Airlines plane crashed just about two minutes after taking off from Multan Airport in eastern Pakistan. The cause of that crash is under investigation.

Investigators in Moscow are checking the black box recorders recovered from a Russian airliner that crashed in Siberia. The plane veered off the runway on Sunday, killing 124 people and injuring dozens of others.

CNN's Ryan Chilcote is live for us this morning from Irkutsk -- Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Morning, Melissa.

We are in Irkutsk, Russia, as you say. That's about a six-hour flight east of Moscow. We are on location where that Siberian airliner crashed over the weekend.

If you look behind me, you can see a row of garages, and at the end of that row of garages, the remains of that Airbus A-310. That Airbus had about just over 200 passengers on board when it was landing in the early hours of Sunday morning on a runway about 300 yards to my left here at the airport in Irkutsk. Just upon landing, it immediately veered off the runway and it nearly full throttle crashed through a cement barricade barreling into these garages. That's where it burst into flames.

The officials are now saying that they believe that the plane's brakes failed. They say that miraculously just over 70 of the people on board that plane survived. They say that the death toll, however, stands at 124. And they are cautioning us that that number could still rise. There are still search teams more than 30 hours later still going through the wreckage -- Melissa.

LONG: Ryan, what are we learning about the passengers on the plane this morning?

CHILCOTE: Well this is a particularly tragic crash. Most of the people that were on that flight were coming here to Siberia to go to a place called Lake Baikal. It's the world's deepest lake. It's a very popular resort destination for both Russians and for tourists coming from aboard. We also know that a lot of the people, many of the people on the plane were children. In fact, we know that at least 14 of them were under the age of 12.

Right now, here at the airport, relatives of the dead are arriving. They are going to the morgue where they can now identify their loved ones. And today is a day of mourning here in Irkutsk. This is not the first crash they have had. They've been through this before. But still, there's a lot of grief in this city. A day of mourning ordered by the Russian president, not just here in Irkutsk, but throughout the country -- Melissa.

LONG: Such a grim day for all the passengers and their loved ones.

Ryan Chilcote live from Irkutsk, thank you.

O'BRIEN: Happening in America.

Back to work day in New Jersey after a weeklong layoff. A battle over the budget prompted the governor to pull the plug on all but essential services. Forty-five thousand state employees sent home. The shutdown also closed Atlantic City's casinos for three days, costing the Garden State almost $4 million in tax revenue.

Hundreds of people turned out Sunday for a private memorial service in Aspen, Colorado for Enron founder Ken Lay. Among those in attendance, former co-defendant Jeffrey Skilling. Lay suffered a heart attack last week as he awaited sentencing for his role in one of the nation's biggest corporate scandals.

In Salt Lake City, a Southwest Airlines' pilot showed up for work under the influence, allegedly. Carl Fulton was arrested after TSA screeners smelled alcohol as he passed through a checkpoint. Police followed him to the gate, ordered him off the plane. He was questioned and given breath tests. Fulton faces up to 15 years in prison if convicted.

What's believed to be the first Hurricane Katrina-related lawsuit now set to begin in Mississippi today. The suit is filed against Nationwide Mutual Insurance Company on behalf of a Pascagoula police officer. It's considered the first legal test for insurers who claim their policies don't cover flood damage.

A California fire is threatening the habitat of the endangered desert tortoise. More than 2,000 acres have burned so far in Joshua Tree National Park. More than a hundred firefighters now trying to contain that one.

And in New Mexico, a teenager drops his keys, tries to get them and is swept away by floodwaters.

Sasha Andrade from our affiliate KOAT reports.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: There's a man floating down the river.

UNIDENTIFIED MALE: All of a sudden he just popped underneath the water.

SASHA ANDRADE, KOAT-TV REPORTER (voice-over): Witnesses say it was all happening so fast, a 15-year-old boy dragged along the arroyo by raging waters. Rescue workers spot the boy and think they'll be able to rescue him, but then...

EDDIE GUTIERREZ, RESCUE WORKER: The two meet right here. There's a certain point in the middle there where he went under water.

ANDRADE: Here is that moment captured on camera. He slips under the water and doesn't come back up. Crews work frantically to find him, hoping that all is not lost. All eyes remain on the rapid water, searching for a glimpse of the victim.

GUTIERREZ: That's where he popped out close to me. Threw the rope in front of him. Luckily, he was able to grab it from there.

ANDRADE: After that intense moment, the 15-year-old is pulled out of the arroyo and into safety. Amazingly, he's going to be OK. Some might call his rescuer a hero, but he says it was all in the line of duty.

GUTIERREZ: It's just doing our job, you know. Anybody else in another station would have done it.

(END VIDEOTAPE)

O'BRIEN: Coming up, the hero, Eddie Gutierrez, and fellow firefighter, Mike Martinez (ph), will join us in our 8:00 a.m. Eastern hour.

LONG: Looking forward to speaking with them.

Still to come, we are live in London with the details of a new terror alert system launching now more than a year after the London subway and bus bombings.

O'BRIEN: Diplomacy seems to be the buzz word du jour for President Bush. What happened to his so-called Bush doctrine of zero tolerance, no nonsense decisiveness? We'll look at the White House policy makeover.

And a 4-year-old boy survives a 12-story fall from his apartment building. And we'll tell you why his mother is now under arrest.

LONG: And Carrie Lee is here with business headlines.

Good morning.

CARRIE LEE, CNN CORRESPONDENT: Good morning.

The U.S. and South Korea opened free trade talks today. One sticking point, an industrial zone in North Korea. We'll have that story coming up and more on AMERICAN MORNING.

(COMMERCIAL BREAK)

LONG: Just waking up, here are some of the stories making news this morning.

Israel's prime minister is ruling out a prisoner swap to win the release of a kidnapped Israeli soldier. Prime Minister Ehud Olmert says a deal with Hamas militants would be a major mistake.

New information in that alleged terror plot to attack New York City train tunnels. Investigators in Lebanon say they found evidence on one suspect's computer. They say it includes maps and bombing plans.

And Japan is weighing its options after North Korea's missile tests. It says it's considering a preemptive strike as a possible form of self-defense. And meantime, a top U.S. diplomat is in Japan this morning.

And that's where we find CNN's Atika Shubert who is live from Tokyo.

Good morning, -- Atika.

ATIKA SHUBERT, CNN CORRESPONDENT: Good morning, Melissa. Japan, as you know, is America's biggest ally in the region, so it gave a warm welcome today to U.S. envoy Christopher Hill who is doing an Asian tour over these North Korean missile launches. He spoke to Japan's Foreign Minister Taro Aso earlier this morning. And afterwards, had a chance, brief chance, to talk to reporters in which he appealed to North Korea to return to the six-party talks.

Here's what he had to say.

(BEGIN VIDEO CLIP)

CHRISTOPHER HILL, ASST. SEC. OF STATE: North Korea has a choice before it, a choice of whether to go for continued isolation or to join the international community. And I hope they will make the right choice.

(END VIDEO CLIP)

SHUBERT: Now Japan is the harshest critic of North Korea. They have been pushing for a U.N. Security Council resolution that would impose sanctions on North Korea. However, China and Russia, both of which have veto power, have opposed that resolution because they fear that it will be counterproductive, pushing North Korea into a corner. And a vote on that resolution might also happen today -- Melissa.

LONG: Atika, what are some of the other options that Japan has been considering?

SHUBERT: Well, given that North Korea has threatened to continue launching missiles if sanctions are imposed, there's actually been some discussion today among lawmakers by Japan's foreign and defense ministers about whether or not Japan can legally carryout a preemptive strike if a missile attack seems imminent.

Now this is a major step for Japan, because, as you know, the country has a pacifist constitution that was imposed on it after World War II. So any discussion of, and the constitution is very clear that Japanese troops cannot be engaged in combat outside of Japanese territory. So this talk of a preemptive strike is clearly a very loose interpretation of the constitution.

Now while that is going on, Japan is also trying to speed up development of a missile defense shield. Over the weekend, the USS Mustin, a U.S. Navy destroyer, arrived at Yokosuka Naval Base just outside of Tokyo. It has a GPS (ph) tracking system, which is one of the integral parts of the missile defense system. However, the ship's commander said that it was there on a routine deployment, it was not specifically deployed over these North Korean missile launches. But clearly, it's very timely, indeed -- Melissa.

LONG: Atika Shubert live this morning from Tokyo, thank you -- Miles.

O'BRIEN: That color-coded terror alert system in our country is alive and well, although seldom mentioned anymore. And while we here on this side of the pond may question the system's value, in Great Britain, they are putting a terror alert system in place.

CNN's Robin Oakley joins us live now from London with more.

Robin, is this going to be a color-coded system?

ROBIN OAKLEY, CNN SENIOR EUROPEAN EDITOR: No, Miles, it isn't going to be a color-coded system here in Britain. But what it is going to be is a simplification, a streamlining and an opening up of the existing terror security alert system.

Currently there are seven different grades in Britain. A parliamentary committee has looked at this system following the July 7 bombings on the London subway and bus system, and they have called for the thing to be simplified. Home Secretary John Reid is going to introduce five grades in future.

But in the past, these were things that were circulated only to government departments. Now, they're going to be available to the general public. They're going to be put out on the Web sites of the MI5 Security Intelligence Service and also the Web site of the British Home Office, which is the nearest equivalent you'd say to the Department of Homeland Security -- Miles.

O'BRIEN: How soon will this be in place then -- Robin?

OAKLEY: It will be in place probably within weeks. We're expecting a full range of counterterrorism measures to be introduced by Mr. Reid next week, but we haven't got the full details just yet -- Miles.

O'BRIEN: And I guess you could ask why has it taken them so long in the post 9/11 world to come up with this system?

OAKLEY: Well, the various parliamentary committee reports, the government's own internal assessments have been working their way through the system. But there was a security alert system anyway in existence.

I think what worried a lot of people was that the existing system was downgraded from a severe general warning to substantial shortly before those London bombings last July. And I think what they are trying to do now is to put a little bit more emphasis into the system and to give some more clarity without creating public alarm -- Miles.

O'BRIEN: And thus a little more credibility, too.

Robin Oakley in London, thank you -- Melissa.

LONG: Trying to plan your week ahead, time for a check now of the forecast.

Chad Myers is at the CNN Center.

Good morning, -- Chad.

MYERS: Hi, Melissa. You awake this morning? LONG: I am awake. No coffee, though.

MYERS: No. Did you sleep in New York City yesterday?

LONG: About four hours.

MYERS: Yes, it's tough.

LONG: Beautiful, beautiful view, though.

MYERS: It's a noisy city. It was a beautiful weekend up there, too.

(WEATHER REPORT)

O'BRIEN: Thank you very much, Chad.

Still to come in the program, Oops, she did it again. No, we're not talking about Britney. This is Oops the monkey. Find out how the real-life Curious George had zookeepers on a wild monkey chase.

And the "Pirates of the Caribbean: Dead Man's Chest" hoists in a record-breaking box office loot. We know this one is rated R. Shiver me timbers, folks.

We'll be back with more AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Carrie Lee has got soul this morning, so to speak. Important negotiations under way in Seoul, South Korea.

LEE: That's right. Seoul, South Korea and U.S. representatives working on a free trade agreement. They met in Seoul today. The idea here is to slash tariffs and other trade barriers, and the U.S. basically wants more access to South Korea's agricultural, automobile and drug markets, while South Korean labor groups actually fear a reduction in protection for some of their products. Rice is a big one.

Another sticking point here, the status of a South Korean-backed industrial zone that lies in North Korea. So a couple of sticking points here. South Korea basically wants goods from that North Korean region included in the deal and the U.S. wants to include only goods from South Korea. But if this all works out, a free trade deal would be the largest since 1993 when NAFTA was signed, so a lot at stake here.

O'BRIEN: Yes, we've been talking so much about North Korean saber rattling, there's still a lot of people concerned about this there. How many protesters do they expect?

LEE: Police expect 50,000. Some numbers are as high as 100,000. So they do have some riot police staked out now, but no problems on that front as far as we have heard so far.

O'BRIEN: OK.

LEE: So that's the latest in South Korea.

Turning to gasoline prices, on the rise again, up 11 cents a gallon over the past two weeks. This according to the Lundberg Survey. The average price for a gallon of self-serve regular now $2.995 cents, so just a hair under $3. Just less than 2 cents below the all-time high set last year...

O'BRIEN: You can round it. Go ahead and round it, three bucks.

LEE: ... after Hurricane Katrina. So about a penny off from the all-time high.

O'BRIEN: Wow!

LEE: And turning to stocks, looking like a strong open for the markets this Monday morning. You can see the industrials, as well as Nasdaq, S&P, fell a bit last week after big losses on Friday. The second quarter profit reporting starts this week. Alcoa, the aluminum giant, one of the Dow 30, kicking it off this afternoon, and we'll hear from General Electric on Friday. So we'll finally have something other than interest rates to focus on on Wall Street.

O'BRIEN: All right. Thank you very much, -- Carrie Lee.

LEE: Sure.

O'BRIEN: The morning's top stories are straight ahead, including new developments in the Mahmoudiya killings. Now four more American soldiers are charged in the rape and murder of an Iraqi woman and her family.

And nearly a week after North Korea's missiles tests, why one Asian country continues to resist efforts to sanction Pyongyang.

Stay with AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Happening this morning.

Japan weighing its options following North Korea's missile tests. It says it is considering a preemptive strike

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

MILES O'BRIEN, CNN ANCHOR: Good morning to you, Monday, July 10. I'm Miles O'Brien.

MELISSA LONG, CNN ANCHOR: And good morning. I'm Melissa Long in today for Soledad.

Here's a look at what's happening this morning.

O'BRIEN: The U.S. point person on North Korea nuclear talks today is in Tokyo today. Christopher Hill is meeting with Japanese officials to discuss North Korea's missile tests. U.N. Security Council to consider sanctions against North Korea today.

LONG: Congress gets back to business this morning after a break last week for the Fourth of July holiday. On tap for the Senate, a $32.8 billion spending bill for homeland security.

O'BRIEN: Also this morning, Henry Paulson to be sworn in as the new U.S. Treasury Secretary. Paulson is the former CEO of the Wall Street investment firm Goldman Sachs.

LONG: In Phoenix this morning, police think they have a third serial criminal on their hands. They say one person may be responsible for 13 shootings, including one over the weekend. They are already searching for a serial rapist and someone who shot and killed four people.

O'BRIEN: Pueblo, Colorado, an eight-mile stretch of Interstate 25 back open now after severe flooding forced its shutdown yesterday. The Pueblo area got about three to four inches of rain. A tornado also spotted there.

Time for a check of the forecast.

Chad Myers, good morning to you.

LONG: Morning.

CHAD MYERS, CNN METEOROLOGIST: And good morning.

(WEATHER REPORT)

Back to you guys in New York.

O'BRIEN: Thank you very much, Chad.

In Iraq, escalating tit-for-tat sectarian violence. A car bombing in a Shiite neighborhood of Baghdad today killing five. Apparent retaliation for the slaughter of more than 40 unarmed Sunnis in western Baghdad yesterday. The victims dragged from their homes and executed in the street. The violence apparently triggered by the bombing of a Sunni mosque on Friday. That prompted a Shiite mosque bombing on Saturday.

Nine months after it began the Saddam Hussein trial entering the final phase. Defense attorneys set to begin closing arguments today. The former Iraqi dictator, seven of his cohorts, are on trial for the massacre of more than 140 Shiites in the town of Dujail in 1982. If convicted, Hussein and the others face the gallows.

The Pentagon has charged four more U.S. soldiers in the rape of an Iraqi teenager and the murder of her and her family. A discharged soldier is charged with rape and murder in a civilian court already. But for the Iraqis, this may not be enough. Prime Minister Nuri al- Maliki is demanding an independent investigation.

CNN's Nic Robertson live now from Baghdad with more -- Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Miles.

We know that the four soldiers have been confined to their base. We know that whenever they move around on their base they always have an escort. They've had their weapons taken away from them.

There is a fifth soldier who's also been charged in connection with them for dereliction of duty from -- with -- essentially withholding information from senior officers about what he knew had happened. The four soldiers charged with the rape and murder of a young Iraqi woman, also the murder of three of her family members.

This -- the court -- they accused of conspiring with former Private First Class Steven Green who is faced similar -- facing similar charges in a civilian court in the United States at the moment.

Now the -- there is a question about the age of the young girl involved here, was she a young girl or was she a young woman? The Reuters News Agency has obtained documents it believes to be her identification papers, which indicate at the time of her killing she would have been 14 years old. The mayor of the town believes, of Mahmoudiya where the incident took place, believes that is her age.

There is confusion and concern and an investigation in the military and in the FBI, at the moment, who believe the young woman may have been between 20 and 25 -- Miles.

O'BRIEN: Nic, tell us this, is it possible the bodies will be exhumed?

ROBERTSON: It seems that perhaps this is going to be the way that the age of this young woman, or girl, and this would obviously be pertinent to the trials here of these young soldiers, her age is important. And it would seem to be that this is the likely best scientific way to determine her age at the time of her death and exactly how she was killed. Now under Islamic law, it is a duty to exhume a body if the justice is not being done for that person. And in this case it would seem under Islamic law, as has been explained to us here in Baghdad, it would be right to exhume her body. However, there are indications that some may try and get some political gain out of doing that -- Miles.

O'BRIEN: Nic Robertson in Baghdad, thank you very much.

The U.S. Marine killings at Haditha, meanwhile, prompting calls to hold officers up the chain of command accountable. A Pentagon report says senior leaders did not sufficiently or adequately investigate the killings of two dozen civilians last November. U.S. Marines suspected of killing them in revenge for the death of a fellow Marine. A Defense Department official is saying commanders recommend more review of the chain of command. That could lead to reprimands or even charges against senior officers.

A CNN "Security Watch" now. More now on that plot to blow up a tunnel connecting New York and New Jersey. Authorities searching the alleged mastermind's computer in Lebanon say they found bombing plans and maps of the Hudson River tunnels.

Meanwhile, two senators are using that incident to propose amendments today to a homeland security spending bill. They want more money for mass transit safety and that's based on real threat levels to real targets.

(BEGIN VIDEO CLIP)

SEN. ROBERT MENENDEZ (D), NEW JERSEY: It seems that from half away -- a world away they know the infrastructure, they know the landmarks, they know the targets that Secretary Chertoff seems to be unaware of.

(END VIDEO CLIP)

O'BRIEN: Stay tuned to CNN day and night for the most reliable news about your security -- Melissa.

LONG: A deadly plane crash overnight in Pakistan to tell you about today. All 45 passengers and crew were killed. The Pakistan International Airlines plane crashed just about two minutes after taking off from Multan Airport in eastern Pakistan. The cause of that crash is under investigation.

Investigators in Moscow are checking the black box recorders recovered from a Russian airliner that crashed in Siberia. The plane veered off the runway on Sunday, killing 124 people and injuring dozens of others.

CNN's Ryan Chilcote is live for us this morning from Irkutsk -- Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Morning, Melissa. We are in Irkutsk, Russia, as you say. That's about a six-hour flight east of Moscow. We are on location where that Siberian airliner crashed over the weekend.

If you look behind me, you can see a row of garages, and at the end of that row of garages, the remains of that Airbus A-310. That Airbus had about just over 200 passengers on board when it was landing in the early hours of Sunday morning on a runway about 300 yards to my left here at the airport in Irkutsk. Just upon landing, it immediately veered off the runway and it nearly full throttle crashed through a cement barricade barreling into these garages. That's where it burst into flames.

The officials are now saying that they believe that the plane's brakes failed. They say that miraculously just over 70 of the people on board that plane survived. They say that the death toll, however, stands at 124. And they are cautioning us that that number could still rise. There are still search teams more than 30 hours later still going through the wreckage -- Melissa.

LONG: Ryan, what are we learning about the passengers on the plane this morning?

CHILCOTE: Well this is a particularly tragic crash. Most of the people that were on that flight were coming here to Siberia to go to a place called Lake Baikal. It's the world's deepest lake. It's a very popular resort destination for both Russians and for tourists coming from aboard. We also know that a lot of the people, many of the people on the plane were children. In fact, we know that at least 14 of them were under the age of 12.

Right now, here at the airport, relatives of the dead are arriving. They are going to the morgue where they can now identify their loved ones. And today is a day of mourning here in Irkutsk. This is not the first crash they have had. They've been through this before. But still, there's a lot of grief in this city. A day of mourning ordered by the Russian president, not just here in Irkutsk, but throughout the country -- Melissa.

LONG: Such a grim day for all the passengers and their loved ones.

Ryan Chilcote live from Irkutsk, thank you.

O'BRIEN: Happening in America.

Back to work day in New Jersey after a weeklong layoff. A battle over the budget prompted the governor to pull the plug on all but essential services. Forty-five thousand state employees sent home. The shutdown also closed Atlantic City's casinos for three days, costing the Garden State almost $4 million in tax revenue.

Hundreds of people turned out Sunday for a private memorial service in Aspen, Colorado for Enron founder Ken Lay. Among those in attendance, former co-defendant Jeffrey Skilling. Lay suffered a heart attack last week as he awaited sentencing for his role in one of the nation's biggest corporate scandals.

In Salt Lake City, a Southwest Airlines' pilot showed up for work under the influence, allegedly. Carl Fulton was arrested after TSA screeners smelled alcohol as he passed through a checkpoint. Police followed him to the gate, ordered him off the plane. He was questioned and given breath tests. Fulton faces up to 15 years in prison if convicted.

What's believed to be the first Hurricane Katrina-related lawsuit now set to begin in Mississippi today. The suit is filed against Nationwide Mutual Insurance Company on behalf of a Pascagoula police officer. It's considered the first legal test for insurers who claim their policies don't cover flood damage.

A California fire is threatening the habitat of the endangered desert tortoise. More than 2,000 acres have burned so far in Joshua Tree National Park. More than a hundred firefighters now trying to contain that one.

And in New Mexico, a teenager drops his keys, tries to get them and is swept away by floodwaters.

Sasha Andrade from our affiliate KOAT reports.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: There's a man floating down the river.

UNIDENTIFIED MALE: All of a sudden he just popped underneath the water.

SASHA ANDRADE, KOAT-TV REPORTER (voice-over): Witnesses say it was all happening so fast, a 15-year-old boy dragged along the arroyo by raging waters. Rescue workers spot the boy and think they'll be able to rescue him, but then...

EDDIE GUTIERREZ, RESCUE WORKER: The two meet right here. There's a certain point in the middle there where he went under water.

ANDRADE: Here is that moment captured on camera. He slips under the water and doesn't come back up. Crews work frantically to find him, hoping that all is not lost. All eyes remain on the rapid water, searching for a glimpse of the victim.

GUTIERREZ: That's where he popped out close to me. Threw the rope in front of him. Luckily, he was able to grab it from there.

ANDRADE: After that intense moment, the 15-year-old is pulled out of the arroyo and into safety. Amazingly, he's going to be OK. Some might call his rescuer a hero, but he says it was all in the line of duty.

GUTIERREZ: It's just doing our job, you know. Anybody else in another station would have done it.

(END VIDEOTAPE)

O'BRIEN: Coming up, the hero, Eddie Gutierrez, and fellow firefighter, Mike Martinez (ph), will join us in our 8:00 a.m. Eastern hour.

LONG: Looking forward to speaking with them.

Still to come, we are live in London with the details of a new terror alert system launching now more than a year after the London subway and bus bombings.

O'BRIEN: Diplomacy seems to be the buzz word du jour for President Bush. What happened to his so-called Bush doctrine of zero tolerance, no nonsense decisiveness? We'll look at the White House policy makeover.

And a 4-year-old boy survives a 12-story fall from his apartment building. And we'll tell you why his mother is now under arrest.

LONG: And Carrie Lee is here with business headlines.

Good morning.

CARRIE LEE, CNN CORRESPONDENT: Good morning.

The U.S. and South Korea opened free trade talks today. One sticking point, an industrial zone in North Korea. We'll have that story coming up and more on AMERICAN MORNING.

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LONG: Just waking up, here are some of the stories making news this morning.

Israel's prime minister is ruling out a prisoner swap to win the release of a kidnapped Israeli soldier. Prime Minister Ehud Olmert says a deal with Hamas militants would be a major mistake.

New information in that alleged terror plot to attack New York City train tunnels. Investigators in Lebanon say they found evidence on one suspect's computer. They say it includes maps and bombing plans.

And Japan is weighing its options after North Korea's missile tests. It says it's considering a preemptive strike as a possible form of self-defense. And meantime, a top U.S. diplomat is in Japan this morning.

And that's where we find CNN's Atika Shubert who is live from Tokyo.

Good morning, -- Atika.

ATIKA SHUBERT, CNN CORRESPONDENT: Good morning, Melissa.

Japan, as you know, is America's biggest ally in the region, so it gave a warm welcome today to U.S. envoy Christopher Hill who is doing an Asian tour over these North Korean missile launches. He spoke to Japan's Foreign Minister Taro Aso earlier this morning. And afterwards, had a chance, brief chance, to talk to reporters in which he appealed to North Korea to return to the six-party talks.

Here's what he had to say.

(BEGIN VIDEO CLIP)

CHRISTOPHER HILL, ASST. SEC. OF STATE: North Korea has a choice before it, a choice of whether to go for continued isolation or to join the international community. And I hope they will make the right choice.

(END VIDEO CLIP)

SHUBERT: Now Japan is the harshest critic of North Korea. They have been pushing for a U.N. Security Council resolution that would impose sanctions on North Korea. However, China and Russia, both of which have veto power, have opposed that resolution because they fear that it will be counterproductive, pushing North Korea into a corner. And a vote on that resolution might also happen today -- Melissa.

LONG: Atika, what are some of the other options that Japan has been considering?

SHUBERT: Well, given that North Korea has threatened to continue launching missiles if sanctions are imposed, there's actually been some discussion today among lawmakers by Japan's foreign and defense ministers about whether or not Japan can legally carryout a preemptive strike if a missile attack seems imminent.

Now this is a major step for Japan, because, as you know, the country has a pacifist constitution that was imposed on it after World War II. So any discussion of, and the constitution is very clear that Japanese troops cannot be engaged in combat outside of Japanese territory. So this talk of a preemptive strike is clearly a very loose interpretation of the constitution.

Now while that is going on, Japan is also trying to speed up development of a missile defense shield. Over the weekend, the USS Mustin, a U.S. Navy destroyer, arrived at Yokosuka Naval Base just outside of Tokyo. It has a GPS (ph) tracking system, which is one of the integral parts of the missile defense system. However, the ship's commander said that it was there on a routine deployment, it was not specifically deployed over these North Korean missile launches. But clearly, it's very timely, indeed -- Melissa.

LONG: Atika Shubert live this morning from Tokyo, thank you -- Miles.

O'BRIEN: That color-coded terror alert system in our country is alive and well, although seldom mentioned anymore. And while we here on this side of the pond may question the system's value, in Great Britain, they are putting a terror alert system in place.

CNN's Robin Oakley joins us live now from London with more. Robin, is this going to be a color-coded system?

ROBIN OAKLEY, CNN SENIOR EUROPEAN EDITOR: No, Miles, it isn't going to be a color-coded system here in Britain. But what it is going to be is a simplification, a streamlining and an opening up of the existing terror security alert system.

Currently there are seven different grades in Britain. A parliamentary committee has looked at this system following the July 7 bombings on the London subway and bus system, and they have called for the thing to be simplified. Home Secretary John Reid is going to introduce five grades in future.

But in the past, these were things that were circulated only to government departments. Now, they're going to be available to the general public. They're going to be put out on the Web sites of the MI5 Security Intelligence Service and also the Web site of the British Home Office, which is the nearest equivalent you'd say to the Department of Homeland Security -- Miles.

O'BRIEN: How soon will this be in place then -- Robin?

OAKLEY: It will be in place probably within weeks. We're expecting a full range of counterterrorism measures to be introduced by Mr. Reid next week, but we haven't got the full details just yet -- Miles.

O'BRIEN: And I guess you could ask why has it taken them so long in the post 9/11 world to come up with this system?

OAKLEY: Well, the various parliamentary committee reports, the government's own internal assessments have been working their way through the system. But there was a security alert system anyway in existence.

I think what worried a lot of people was that the existing system was downgraded from a severe general warning to substantial shortly before those London bombings last July. And I think what they are trying to do now is to put a little bit more emphasis into the system and to give some more clarity without creating public alarm -- Miles.

O'BRIEN: And thus a little more credibility, too.

Robin Oakley in London, thank you -- Melissa.

LONG: Trying to plan your week ahead, time for a check now of the forecast.

Chad Myers is at the CNN Center.

Good morning, -- Chad.

MYERS: Hi, Melissa. You awake this morning?

LONG: I am awake. No coffee, though.

MYERS: No. Did you sleep in New York City yesterday?

LONG: About four hours.

MYERS: Yes, it's tough.

LONG: Beautiful, beautiful view, though.

MYERS: It's a noisy city. It was a beautiful weekend up there, too.

(WEATHER REPORT)

O'BRIEN: Thank you very much, Chad.

Still to come in the program, Oops, she did it again. No, we're not talking about Britney. This is Oops the monkey. Find out how the real-life Curious George had zookeepers on a wild monkey chase.

And the "Pirates of the Caribbean: Dead Man's Chest" hoists in a record-breaking box office loot. We know this one is rated R. Shiver me timbers, folks.

We'll be back with more AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Carrie Lee has got soul this morning, so to speak. Important negotiations under way in Seoul, South Korea.

LEE: That's right. Seoul, South Korea and U.S. representatives working on a free trade agreement. They met in Seoul today. The idea here is to slash tariffs and other trade barriers, and the U.S. basically wants more access to South Korea's agricultural, automobile and drug markets, while South Korean labor groups actually fear a reduction in protection for some of their products. Rice is a big one.

Another sticking point here, the status of a South Korean-backed industrial zone that lies in North Korea. So a couple of sticking points here. South Korea basically wants goods from that North Korean region included in the deal and the U.S. wants to include only goods from South Korea. But if this all works out, a free trade deal would be the largest since 1993 when NAFTA was signed, so a lot at stake here.

O'BRIEN: Yes, we've been talking so much about North Korean saber rattling, there's still a lot of people concerned about this there. How many protesters do they expect?

LEE: Police expect 50,000. Some numbers are as high as 100,000. So they do have some riot police staked out now, but no problems on that front as far as we have heard so far.

O'BRIEN: OK.

LEE: So that's the latest in South Korea. Turning to gasoline prices, on the rise again, up 11 cents a gallon over the past two weeks. This according to the Lundberg Survey. The average price for a gallon of self-serve regular now $2.995 cents, so just a hair under $3. Just less than 2 cents below the all-time high set last year...

O'BRIEN: You can round it. Go ahead and round it, three bucks.

LEE: ... after Hurricane Katrina. So about a penny off from the all-time high.

O'BRIEN: Wow!

LEE: And turning to stocks, looking like a strong open for the markets this Monday morning. You can see the industrials, as well as Nasdaq, S&P, fell a bit last week after big losses on Friday. The second quarter profit reporting starts this week. Alcoa, the aluminum giant, one of the Dow 30, kicking it off this afternoon, and we'll hear from General Electric on Friday. So we'll finally have something other than interest rates to focus on on Wall Street.

O'BRIEN: All right. Thank you very much, -- Carrie Lee.

LEE: Sure.

O'BRIEN: The morning's top stories are straight ahead, including new developments in the Mahmoudiya killings. Now four more American soldiers are charged in the rape and murder of an Iraqi woman and her family.

And nearly a week after North Korea's missiles tests, why one Asian country continues to resist efforts to sanction Pyongyang.

Stay with AMERICAN MORNING.

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