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CNN LIVE AT DAYBREAK

Violent Iraq; Kidnapped American; Al Qaeda Arrests; Auto China; Bible Magazines

Aired June 14, 2004 - 05:30   ET

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


CAROL COSTELLO, CNN ANCHOR: In money news, beginning today Internet users will be able to download and watch movies like "Finding Nemo" and others online for a flat monthly subscription fee. RealNetworks and the Starz Encore Group are launching the service as a way to head off piracy.
In culture, a festival of colors in New York City for the annual Puerto Rican Parade. Thousands took part in this year's events, which become -- which have become the city's largest celebration.

And in sports, it was a rough day at the Pocono Raceway for many of NASCAR stars. But why am I talking about this -- Chad?

CHAD MYERS, CNN METEOROLOGIST: Because I didn't watch it.

COSTELLO: Jimmie Johnson, I guess he...

MYERS: Right, he won under yellow.

COSTELLO: Well, he came out of the -- he came out of a wreck. There it is.

MYERS: OK. That's Matt Kenseth. I mean he hits him.

COSTELLO: I thought you didn't watch it, but you know this anyway? That's...

MYERS: Well, I know the car. All I saw was that another one finished under yellow and people were throwing stuff on the court again -- on the -- on the track again.

COSTELLO: No.

MYERS: Yes.

COSTELLO: By the way...

MYERS: NASCAR just has to figure that out. They have got to race the last five laps under green no matter what. They just have got to figure that out. Go look at ASA, they do it -- they do it right.

Anyway,...

COSTELLO: Anyway, the weather.

MYERS: ... I digress.

Good morning, anyway. Good morning, everybody.

(WEATHER REPORT)

COSTELLO: All right, thank you -- Chad.

MYERS: You're welcome.

COSTELLO: The clock is ticking on the handover of power to the Iraqis. And as U.S. military officials feared, more deadly attacks as that June 30 handover date approaches.

A bomb, believed to be at least 1,000 pounds, goes off less than six hours ago during Baghdad's rush hour, 6 people killed, as many as 57 hurt. That bombing comes a day after gunmen kill education ministry official Kamal al-Jarah outside of his home.

The Iraqi president, Ghazi al-Yawar, who met with President Bush last week, was asked whether Iraqi leaders or the U.S. military will make decisions on military operations. He says on major operations -- and I'm quoting here -- "they have got to seek the approval of the Iraqi leadership or command."

Sixteen days, as I said, to the official transfer of sovereignty to the new Iraqi government. And as predicted, violence is escalating. Can the Iraqi security forces deal with it? That's a crucial question as White House correspondent Suzanne Malveaux reports.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice over): With the transfer of power to Iraq just a little over two weeks away, President Bush's foreign policy enters a critical phase. As the president had predicted, the violence there is escalating. A deadly car bomb attack and the assassination of another Iraqi government official are proof. White House officials say, that insurgents and Saddam loyalists are stepping up their efforts.

RICE: Especially in the lead up to sovereignty, there will likely be more violence, not less.

MALVEAUX: The White House strategy now to convince allies, the Iraqi people can handle the heat.

RICE: We have good partners now in this Iraqi government who will be tough, we believe, on terrorism, tough on the insurgents who are trying to stop progress, and sooner or later this will be under control.

MALVEAUX: Even with U.S. troops and private contractors aiding Iraqi security forces, U.S. and Iraqi officials warn this is a dangerous period. Iraq's new president said he envisions U.S. troops will be needed there for another six months to a year. GHAZI AL-YAWAR, IRAQI PRESIDENT: The first challenge of the new interim government is the security issues. Without security we cannot move on the election issue in or the development of the country, or reconstruction.

MALVEAUX: The Iraqi president emphasizing construction not destruction. Even of the now infamous especially at Abu Ghraib prison. President Bush has suggested leveling the facility following the prison abuse scandal.

YAWAR: This is very reactionist. To our people that we need, every single dollar we have in order to rebuild our country, instead of demolishing and rebuilding.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

COSTELLO: Coalition Provisional Authority spokesman Dan Senor will talk about Iraq's security this morning on CNN's "AMERICAN MORNING." Of course that comes your way at 7:00 a.m. Eastern.

An unusual criticism of Bush administration foreign policy, it comes from a group of about 20 former high level diplomats and military officers. They have issued a statement saying British or Bush foreign policy has hurt national security. Many of the signers were appointed by Republican administrations. The statement clearly calls for a defeat of the Bush administration, although it does not endorse any candidate.

The U.S. Embassy is working with Saudi authorities to find an American kidnapped in Saudi Arabia. A group linked to al Qaeda says it happened to Paul Johnson on Saturday and it has threatened to treat him the same way some U.S. troops treated Iraqi prisoners. Johnson's family is worried sick. In Port Saint Joe, Florida, where Johnson's son lives, friends have placed yellow ribbons on trees to show their support.

The militant group that kidnapped Johnson also claims to have killed American Kenneth Scroggs at his Riyadh home on Saturday. It's the latest in a series of attacks aimed at driving Westerners out of Saudi Arabia and sabotaging the Kingdom's oil resources.

Secretary of State Colin Powell is expressing concern over these latest events in Saudi Arabia.

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: We're very sad over the loss of an American life, and we are worried about the individual who was kidnapped. And we are working with the Saudi officials to recover him safely. And it's a troubling time in Saudi Arabia, and I know that the Saudis are doing everything they can to deal with this terrorist threat.

(END VIDEO CLIP) COSTELLO: It was Paul Johnson's son who first publicly identified his father as the kidnapped victim in Saudi Arabia.

As CNN's Gary Tuchman reports, the younger Johnson is upset about the way he found out.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): Another family living a kidnapping nightmare. Inside this home in Brevard County, Florida, they're praying for the safety of a father and husband, Paul Johnson, believed to have been taken hostage in Saudi Arabia.

His son found out about his father, not from the U.S. government, but from a TV station.

PAUL JOHNSON, III, KIDNAP VICTIM'S SON: This should not have happened. They -- this could have been very preventable, you know, on Lockheed Martin's part.

TUCHMAN: Johnson is an employee of Lockheed Martin, but the company is not giving out information. A Web site affiliated with al Qaeda displayed a passport sized photo of the 49-year old Johnson, as well as a driver's license and a business card, and made the claim their kidnapping victim is an Apache helicopter specialist.

JOHNSON: I just want my father to come safe.

TUCHMAN: Family and friends have been coming by the home to pay vigil. One of the friends saying the State Department has now officially contacted the family.

Members of the news media tried to offer comfort to Paul Johnson's son.

UNIDENTIFIED MALE: Just try to think positive. And you know, you just got to keep positive thoughts in your head. When you start thinking negative, you know, just trying to stay positive. Trying to keep everybody strong, you know. Everything's going to be OK.

TUCHMAN: Gary Tuchman, CNN, Brevard County, Florida.

(END VIDEOTAPE)

COSTELLO: A successful raid in Pakistan netted nine armed men linked to al Qaeda, and one of them had a million dollar bounty on his head.

For more on the operation and the arrest, we're joined by CNN's Ash-Har Quraishi. He is live in Islamabad this morning.

Tell us more -- Ash-Har.

ASH-HAR QURAISHI, CNN ISLAMABAD BUREAU CHIEF: Good morning, Carol. Well, authorities are calling this a breakthrough and they say it's a blow to the terrorist network. Now over the weekend, authorities were able to capture these nine suspected militants. They say they have links to al Qaeda, as you mentioned, and among the nine they say a man who says his name is Mussad Aruchi. Pakistani authorities describe this man as the nephew and close associate of suspected 9/11 mastermind Khalid Shaikh Mohammed who was captured here in Pakistan last year.

Now officials are telling us that these men are also linked to a series of deadly attacks in the southern port city of Karachi, as well as the southwestern city of Kuata (ph), over the last six months. They say that in these raids carried out over the weekend they were able to recover some seized items, Kalashnikov rifles, submachine guns, as well as grenades and detonators.

They say that this is the first time they found links between attacks in other cities, like Kuata and Karachi, to the tribal areas of northwest Pakistan where the military over the past five days has been involved in fierce fighting against suspected al Qaeda fighters there. They say that some of the men arrested over the weekend may have trained in the tribal areas and gotten their weapons from over there.

Now the military telling us today on the front of the fight in the tribal areas where they say hundreds of suspected al Qaeda fighters may be holed up, they have killed some 55 suspected militants and also suffered about 17 casualties to security personnel. But today officials are saying they may expect some more arrests in the days to come after what they call a very successful weekend of raids in which they have nabbed these nine suspects -- Carol.

COSTELLO: And, Ash-Har, that's wonderful news, but I have to ask you about the search for Osama bin Laden as well, any new word on that?

QURAISHI: So far officials say nothing new. But what we have seen over the last few months, in particular, and the operations right now ongoing in the areas known as South Waziristan in the tribal areas, the government, the military being able to get some sort of a foothold there. That is one location that many believe Osama bin Laden may be hiding. He has a lot of support there. There is a lot of local support as well. So as they get their foothold there, more information, they hope, may come out with some of these arrests and some of the operations that are going on out there -- Carol.

COSTELLO: Ash-Har Quraishi, live in Islamabad this morning, thank you.

Time to check on some stories making news 'Across America' this Monday.

It's week three of the Scott Peterson trial. This week, police will take the stand to testify about their investigation into the murders of Laci Peterson and her unborn child. Scott Peterson faces the death penalty if he is convicted. The 2005 Ford Escape, small SUV, passed the latest round of driver side crash tests, but it still only got an acceptable rating. The tests are conducted by the Insurance Institute for Highway Safety. The vehicle was tested last in 2001 when the top selling Escape got the industry's second lowest rating.

Researchers from Texas A&M University found the wreckage of 24 Japanese subs sunk on purpose after World War II. The U.S. Navy sank the subs in 1946 to keep the technology away from the Soviet Union. The submarines were found 60 miles off the coast of Nagasaki.

The Olympics just around the corner, but will the top athletes be sidelined by the doping scandal? In the next hour of DAYBREAK, we'll talk more about this growing controversy.

And from bikes to Bentleys, China's cream of the crop shell out big bucks for top of the line luxury automobiles. We'll get the latest live for you from Beijing.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 5:44 Eastern. Here is what's all new this morning.

Baghdad rocked by a second car bomb explosion in two days. At least six were killed in this morning's blast, including an American contractor. Fifty-seven others were wounded.

The search goes on in Saudi Arabia for American worker Paul Johnson. The Lockheed Martin employee is missing and believed kidnapped by Islamic militants. Gunmen killed two other Americans last week in Saudi Arabia.

In money news, Alan Greenspan may say something about interest rates tomorrow when he appears before the Senate Banking Committee. The committee will consider Greenspan's nomination for a fifth term as Federal Reserve chairman.

In culture, Tokyo and London topped this year's list of the world's most expensive cities. The weak U.S. dollar keeps American cities out of the top 10.

In sports, Annika Sorenstam of Sweden won the LPGA Championship with rounds of 64 and 72. That was a three-shot victory over South Korea's Shi Hyun Ahn -- Chad.

MYERS: And good morning, Carol.

(WEATHER REPORT)

MYERS: Carol, back to you.

COSTELLO: Thank you, Chad. China may be leaving the bicycle age behind as more and more Chinese choose four wheels instead of two, but they aren't taking a seat in just any old jalopy. This week, China is playing host to one of the world's largest auto shows.

Beijing bureau chief Jaime FlorCruz joins us with more on car crazy China.

They're picking out Bentleys -- Jaime.

JAIME FLORCRUZ, CNN BEIJING BUREAU CHIEF: Yes, Carol, as China moves from being a bicycle kingdom of bicycles to a car society, Chinese are now snapping up cars, not just cheap cars, but also luxury cars, the Cadillacs and Bentleys and Rolls Royce.

Very few Chinese, in fact, less than one percent of China's 1.3 billion people can afford a car, but it's a small and growing market. Most Chinese are now saving up to buy cars. It's projected that in about six years time some 10 million units will be sold in China, which will make it the second biggest market in the world next only to the United States.

And now they are buying luxury cars like Bentleys. Bentley, for example, sold like 50 cars last year. And this year some 100 cars are expected to be sold, including the brand exactly the same that the queen of England used for the 50th anniversary -- Carol.

COSTELLO: And, Jaime, we're looking at pictures of the Chinese auto show beside you, and they have models and they are really trying to, you know, go along with this theme of the Chinese loving their cars, much like Americans do. Do American cars sell in China, because I know that Ford is really trying to get into the market there?

FLORCRUZ: They are selling very well. Ford is selling well. GMs, Cadillacs are selling well. And in fact, they are one of the biggest participants in this auto show. They have, perhaps, the biggest booths and the fanciest kind of gimmicks in these booths. They have models dancing and prancing around these glitzy cars and stretches that very few Chinese can still afford. But there are something like 50,000 multimillionaires in China now, and they are the ones who are being targeted for these ultra luxurious cars -- Carol.

COSTELLO: Those models dancing and prancing always works, doesn't it? Jaime FlorCruz, live from Beijing this morning, thank you.

One Connecticut woman is getting high gas mileage thanks to China. Actually, it's thanks to Chinese food. Etta Kantor converted her Volkswagen Jetta so it will run on used cooking oil instead of diesel. Is this possible -- Chad?

MYERS: Sure, absolutely. A lot of folks are doing that.

COSTELLO: Come on!

MYERS: Not kidding. Sure. It smells a little different, obviously. But actually they are cracking down on this in Europe and in England because you have to -- there is so much gas tax on their gas there and on diesel there that the people that are using this used vegetable oil, used, it's already fried, it's not new, they have already -- they have already cooked...

COSTELLO: Well they are recycling it, how fabulous.

MYERS: They have already cooked a bunch of egg rolls in it or whatever, right?

COSTELLO: Stuff in it. Yes, because the oil is coming from a local Chinese restaurant. That's where this woman in Connecticut...

MYERS: Exactly, right.

COSTELLO: ... is getting her used vegetable oil.

MYERS: Correct.

COSTELLO: Let's continue on with your thought.

MYERS: But you could get it from anywhere. I mean there are all these restaurants are throwing gallons and gallons of this used oil away and some folks are taking it and dumping it in their car.

COSTELLO: And you...

MYERS: Not their gas car.

COSTELLO: A diesel. A diesel.

MYERS: Not gasoline.

COSTELLO: But I mean...

MYERS: And you do have to convert it. It's not just going to do it all by itself, but you can. You can mix a little bit 50/50.

COSTELLO: Yes, try to find a mechanic -- can you convert my car to run on vegetable oil, please?

MYERS: Well it's not that hard, actually.

COSTELLO: OK, I'll be talking to you later.

MYERS: I can't get yours, yours is gas.

COSTELLO: That's right.

A novel plan aimed at introducing teens to God. Up next, how a new magazine is teaching teenagers about the Bible in their own language. Like wow! And why some, well, they don't really think it's a good idea. We'll tell you why.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: Welcome back to DAYBREAK.

Some 'Health Headlines' for you this morning.

Women trying to schedule a mammogram, they find a waiting period anywhere from weeks to several months, but you ladies know that. A new report from a government advisory council says that's because more women are scheduling breast screenings, but fewer facilities are offering them.

Eating foods high in Vitamin C may cut your risk of getting arthritis. The new study suggests Vitamin C protects against inflammatory polyarthritis. That's a form rheumatoid arthritis involving two or more joints.

Children participating in summer sports camps may not be getting enough to drink. A survey of kids attending a Pennsylvania soccer camp found that by the fourth day, 59 percent of the boys and 70 percent of the girls were significantly or seriously dehydrated.

For more on this or any other health story, head to our Web site. The address, CNN.com/health.

Teenagers who may be intimidated by the traditional Bible can now get their scripture in magazines. There are some critics of this unconventional method, though, including members of the clergy, as CNN's Alina Cho reports.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT, (voice over): The quiz is called, what kind of friend are you? And these girls are playing it.

UNIDENTIFIED FEMALE: Some boys are teasing your friend, Beth, because she got a bad haircut, what you do say?

CHO: Sounds like something from a teen magazine, except it isn't. It's a Bible, "Revolve: The Complete New Testament."

UNIDENTIFIED FEMALE: I thought it was awesome.

CHO: In fact Felicia Hassan (ph) liked it so much, she gave it to her friends Nasema (ph) and Melissa.

UNIDENTIFIED FEMALE: At first when I saw, I was thinking that, like, it wouldn't send a real message, like, and they were twisting up the Bible. But I read a little bit of it and it is not doing that at all.

CHO: What it does is get teens to read the bible through clever marketing: catchy headlines, the popular Q&A's, lots of pictures, features, even beauty tips. Woven in, the New Testament in its entirety, beginning with the birth of Jesus and the book of Matthew, to the final judgment in "Revelations." There's also a bible for boys called "Refuel." Two other teen bibles, "True Images" for girls and "Revolution" for boys, include both the New and Old Testaments.

(on camera): The idea was borne out of research by the publishers that found, while a majority of the teens go to church, most don't read the bible, because they find it too big and too intimidating. Critics say scripture is sacred and shouldn't be put in magazine form.

JEFF JOHNSON, GRACE CHURCH IN NEW YORK: This is the most important thing that we possibly do in our lives is having a relationship with God. And this sort of cheapens it and dumbs it down.

CHO: Jeff Johnson of Grace Church in New York says it's not enough to stay home and read, religion is also about going to church.

JOHNSON: It is about community, we have to interpret and understand scripture as a community.

UNIDENTIFIED FEMALE: Well, why not? Because all they're doing is, like, putting into modern terms so that we can understand it.

CHO: Engaging teens about religion, bringing the message of God to a generation that otherwise might not care.

Alina Cho, CNN, New York.

(END VIDEOTAPE)

COSTELLO: Well let's talk about something that came from the heavens in New Zealand.

MYERS: What a transition that was.

COSTELLO: Wasn't that good. Kind of disrespectful, and if you think so, I'm sorry, but it's early.

MYERS: Big old piece of grapefruit.

COSTELLO: Big old piece of grapefruit, as in meteorite, came down from the sky...

MYERS: As in -- exactly.

COSTELLO: ... and hit a home in New Zealand.

MYERS: Right through the roof, down, hit the couch, bounced to the ceiling again and then back down and landed under the computer.

COSTELLO: Keep in mind this thing was traveling at 300 miles per hour when it crashed through these people's roof.

MYERS: And this is New Zealand, so this is the quote, "Boy, if I'd have been sitting on the couch, it would have been quite the crowning." COSTELLO: I thought that was pretty mild. I would have been running from my home.

MYERS: Yes. Actually the experts think this is worth about $5,000 if they want to sell it. It's clearly it's theirs because it went right through their house.

COSTELLO: But only 5,000 bucks?

MYERS: I would think more.

COSTELLO: I think they should hold out for more, don't you, because this doesn't happen every day?

MYERS: Yes, sure, somebody will...

COSTELLO: Thank goodness.

MYERS: That's right.

COSTELLO: We'll be right back. You stay right there.

(COMMERCIAL BREAK)

COSTELLO: The target, Westerners, and this morning a huge blast ripped through one of Baghdad's busiest streets.

It is Monday, June 14.

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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