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CNN LIVE AT DAYBREAK

Explosions Overnight in Central Baghdad

Aired December 12, 2003 - 05:04   ET

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

CAROL LIN, CNN ANCHOR: To Iraq now, explosions overnight in central Baghdad and the green zone where coalition headquarters is set up. So far we don't know the cause or if there's been any damage or casualties. Now, before those explosions, Jane Arraf, our Baghdad bureau chief, filed this report.
(BEGIN VIDEOTAPE)

JANE ARRAF, CNN CORRESPONDENT: Baghdad is quiet after explosions shook the so-called secure green zone in the capital overnight. There were several explosions around the compound where the U.S. headquarters are based in Saddam's former palace. Smoke could be seen rising, but U.S. officials say there were no casualties and no serious damage.

The chief civilian administrator, though, L. Paul Bremer, is warning that attacks could rise as Iraq edges towards democracy with the transfer of power proceeding next year from U.S. control to Iraqi control. He's quoted as saying that there could be more attacks and more resistance.

And in the United States, a human rights report says the use of U.S. and British cluster bombs during the war contributed to over 1,000 Iraqis being wounded or killed. Those cluster bombs have been criticized for causing civilian casualties in other wars.

The Human Rights Watch report also said the Iraqi government was to blame for contributing to civilian casualties, as well, partly by putting military installations near hospitals and mosques.

Jane Arraf, CNN, reporting from Baghdad.

(END VIDEOTAPE)

LIN: And another incident in Iraq to update you on, the wounding of two "Time" magazine journalists. We have additional details on the Wednesday incident that injured correspondent Michael Weisskopf. He's been a guest before here on CNN. And also photographer James Nachtwey.

Now, the grenade, a grenade was actually thrown into the Army Humvee they were riding in. Weisskopf grabbed the grenade, but it exploded as he tossed it out, leaving him with serious injuries to his arm. Nachtwey and two U.S. soldiers also suffered shrapnel wounds.

At the White House, President Bush is defending his decision to withhold Iraq reconstruction contracts from nations that didn't support the war.

Our John King has more on that.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): The president says he doesn't understand all the fuss.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It's very simple, our people risked their lives. Coalition, friendly coalition folks risked their lives and therefore the contracting is going to reflect that. And that's what the U.S. taxpayers expect.

KING: But the decision to steer nearly $20 billion in Iraq reconstruction money to companies from the United States and key war allies reopened the diplomatic divide between Washington and major war opponents like France, Russia and Germany.

KOFI ANNAN, U.N. SECRETARY GENERAL: I would not characterize the decision taken yesterday as unifying.

KING: The president's political opponents call it more failed diplomacy.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I think it borders on the stupid. It is counterproductive. It is the exact opposite of what we should be doing in order to bring other countries into the table.

KING: But at this year end cabinet meeting, Mr. Bush not only defended the policy, but scoffed when asked about French and German suggestions his approach violates international law.

BUSH: International law? I'd better call my lawyer.

KING: Still, the timing is awkward, to say the least. The dust up comes just as special Bush envoy James Baker heads to Paris, Moscow and Berlin, asking leaders to forgive or at least reduce huge Iraqi debts from the days of Saddam Hussein.

IVO DAALDER, BROOKINGS INSTITUTION: If I were Mr. Baker, I would have gone into the Oval Office and told the president I'm going back to Houston until you find a way to cooperate with these guys.

KING: Canada also was excluded from major contracts, though Prime Minister Jean Chretien says Mr. Bush told him Thursday that was a mistake.

JEAN CHRETIEN, CANADIAN PRIME MINISTER: He was telling me to basically not to worry.

KING: The White House says Mr. Bush made no promises, but did note Canada's pledge to offer money for Iraq's reconstruction.

(on camera): Iraq's $120 billion international debt is now an urgent White House focus and perhaps a bargaining point in the bitter contract dispute. Administration officials suggested those excluded from the lucrative contracts now could see things change if they agree to forgive or at least substantially reduce Iraq's debt burden.

John King, CNN, the White House.

(END VIDEOTAPE)

LIN: Well, the U.S. is facing a backlash over this contract matter. Read about it and other stories related to Iraq on our Web site. The address is cnn.com. The AOL keyword is CNN.

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




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