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CNN LIVE AT DAYBREAK

Iraq: Next Chapter, Return to Sovereignty; Turkish Hostages Freed in Iraq; NATO Summit Mission Meetings

Aired June 29, 2004 - 06:00   ET

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


BETTY NGUYEN, CNN ANCHOR: Well, good morning to you from the CNN global headquarters in Atlanta. I'm Betty Nguyen, in for Carol Costello. Here's a look at headlines this hour.
The NATO summit wraps up today in Turkey. President Bush will deliver a speech to world leaders there just over an hour from now, and CNN will bring that to you live.

When Secretary of State Colin Powell leaves the NATO summit, he'll head to the North African nation of Sudan. His goal will be to pressure the government to stop Arab militias from waging war and genocide against black Africans.

In money, another setback for United Airlines. A federal panel has denied the company's third and final request for a billion-dollar federal loan guarantee. United will now have to try to get the financing on its own to get out of bankruptcy.

In culture, Hungarian scientists say cell phones can cut a man's sperm count by up to 30 percent. The study deals with phones carried in pockets or on belt holsters. But fertility experts say the results of the study are inconclusive.

In sports, David Bell of the Philadelphia Phillies hit for the cycle in a game against the Expos. Now, that means he hit a single, double, triple and a homerun. Bell's grandfather, Gus Bell, also hit for the cycle back in 1951.

(WEATHER BREAK)

NGUYEN: One day after the handover surprise in Iraq, no surprise that the violence is continuing there. U.S. Marines were the target today, the first day of Iraqi sovereignty, the first full day.

Let's go live to our Brent Sadler in Baghdad for the details.

Hi -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Hi. Good morning, Betty.

Yes, some 24 hours after that historic handover of sovereignty to an interim Iraqi government, an attack on a U.S. convoy in Baghdad. It happened several hours ago.

We're still waiting for more details about the unit involved, but it was an attack, a roadside bomb, one of those improvised explosives devices that we're seeing so much causing death and injuries over many, many months now.

A Humvee vehicle is seen in the wreckage there. After this bomb blast, a soldier on the scene, a U.S. soldier, told the media there had been casualties, deaths and injuries, but we're still awaiting confirmation of what those are, as I say, and which unit the convoy belongs to. It was apparently taking equipment from one side of the capital to another.

In further developments, after the handover of sovereignty yesterday when the former civil administrator, Paul Bremer, hurriedly left the country, there was a quick restoration of diplomatic relations between the United States and the new Iraqi authorities. Relations were severed back in 1990 when former President Saddam Hussein invaded Kuwait. Those diplomatic relations were restored.

And the new ambassador, the new U.S. ambassador to Iraq, John Negroponte, who was formerly the U.S. ambassador at the United Nations, went into the Green Zone, formerly the headquarters of the CPA, the outgoing Coalition Provisional Authority, that very heavily- fortified zone in the center of Baghdad, to take up office as the new ambassador to Iraq -- Betty.

NGUYEN: Brent, let's talk about this handover. They stepped it up in an effort to try to hold off some of the violence. But does it appear that it's just really strengthened the resolve of these insurgents?

SADLER: Well, I think you've seen since the handover yesterday, you've seen Ayad Allawi, the interim prime minister, making it quite clear that they do intend to combat this insurgency with continuing help from the U.S. forces. They are going to stay here.

But the Iraqis want to show the Iraqi people that they are in the driving seat, that they are calling the shots, and perhaps there might be some introduction of emergency laws at some stage. We'll have to wait and see -- Betty.

NGUYEN: All right, CNN's Brent Sadler in Baghdad.

We want to now go Alphonso Van Marsh, CNN's Alphonso Van Marsh with the latest on this Turkey hostage situation.

Alphonso, what have you learned?

ALPHONSO VAN MARSH, CNN CORRESPONDENT: Yes, we've got details and confirmation from very senior foreign ministry, Turkish Foreign Ministry officials saying that those three Turkish hostages are now free. They're on their way back to Turkey.

Again, senior-level Turkish Foreign Ministry officials are saying that those three Turkish nationals that were seen in a videotape released by armed militants in Iraq at CNN Al-Jazeera television are now free.

NGUYEN: And they're free. We've seen or at least heard of a video that had been given to Al-Jazeera stating why these hostages had been freed. It has to do with their religion, it appears, correct?

VAN MARSH: Well, I think it's important that we probably want to stay away from that information until we get more information from officials here, at least on the Turkish side of the border.

What's important to keep in mind is that the Turkish Ministry officials say there have been at least 10 -- 10 Turkish nationals since the end of May that have been kidnapped. They're targeted, a lot of these armed militants groups have said in the past, because they're unhappy that Turkey is cooperating with the United States, that Turkish businesses are cooperating with the U.S. occupation in Iraq. Turks as a whole here are very much against the U.S. occupation of Iraq.

But it's also important to remember that in the past, the Turkish Foreign Ministry has taken some credit for being sure that these kidnappees have been released unharmed. They're brought back to Turkey alive. And they say that this is another success on their part that these three Turkish hostages, senior Turkish Foreign Ministry officials say, are on their way home today -- Betty.

NGUYEN: So, the hostages have been released. The circumstances around that release, still a lot of questions surrounding that.

All right, CNN's Alphonso Van Marsh on the phone from Turkey, thank you.

NATO nations have reached agreement on a stronger force for Afghanistan. The expanded million will be mobilized ahead of the planned elections coming up in September. But Afghanistan's president says a greater force is needed now.

White House correspondent Suzanne Malveaux joins us now from Istanbul with the latest.

Hi -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, hello, Betty.

With the handshake from President Bush and British Prime Minister Tony Blair yesterday, the focus, of course, on that early turnover of power to Iraq; also as well the drama with the Turkish hostages unfolding, the focus being, of course, the democracy in Iraq in that region. We have a commitment from the NATO alliance saying that they will go ahead and help train Iraqi forces.

But the big test here today is all about Afghanistan. That is the first mission of the NATO alliance outside of Europe. Today, NATO members pledged to expand their peacekeeping mission there as Afghan leader Hamid Karzai has requested. They announced an increase in troops from 6,500 to 10,000; also to expand the NATO area outside of Kabul to the north and to the west.

Now, while NATO has made commitments in the past, it is the Afghan leader, Hamid Karzai, who says that in order to secure their elections in September, they need to make sure that those NATO members keep their commitments. This is something that has been a problem in the past. But he says he is determined to hold those NATO members to account, to make those elections go forward in the fall.

(BEGIN VIDEO CLIP)

PRES. HAMID KARZAI, AFGHANISTAN: The elections are coming in September. And we need security forces today in Afghanistan to provide a secure environment for elections for the Afghan people and beyond. Our request today is to please fulfill the commitment that you have made yesterday for Afghanistan before elections, so that we in Afghanistan can provide our people with an environment in which they can go and vote freely and fairly.

(END VIDEO CLIP)

MALVEAUX: Now, later this afternoon, President Bush will bring forward, making the case for democratic reforms in the Middle East through his broader Middle East initiative. This is an argument that he has been making that essentially bringing democracy to that region will help choke terrorism. Of course, NATO allies are saying that they want to contribute inside of Afghanistan and Iraq.

There has been, however, some skepticism from Arab nations who have looked at this as a way of the U.S. imposing its own brand of democracy on the region. But the president, again, making his case. He believes this is all a part of the war on terror, that it is in the interest of the European allies as well to get involved -- Betty.

NGUYEN: Suzanne, coming home after this flurry of international diplomacy, what does the president face next?

MALVEAUX: Well, certainly the big challenge, the big question here is whether or not this is going to translate into votes for his election in November. As you know, the president is now facing the (AUDIO GAP) approval rating in his presidency; also, a lot of skepticism from Americans on whether or not it was worth it in the first place to go to war in Iraq. That is something that he is going to still have to convince the American people for his election, and we'll see just how this international diplomacy translates into votes at home.

NGUYEN: White House correspondent Suzanne Malveaux in Istanbul after the NATO summit there. All right, thank you, Suzanne.

President Bush is scheduled to speak this morning at that summit. CNN will provide liver coverage of the address on "AMERICAN MORNING," beginning at 7:00 a.m. Eastern.

Here are some stories making news across America this Tuesday.

One railroad worker is dead and a massive cleanup is ongoing following a train collision in Texas. This is a picture of it. At least 40 train cars were tossed from the tracks in the accident on Monday. That crash sent a toxic cloud of chlorine gas and ammonia nitrate in the air, as you see there. Officials are investigating whether the gas cloud is responsible for the deaths of two elderly women who were found about a mile away from the crash site.

Frequent fliers lined up in Minneapolis to take advantage of a new plan that could lead to shorter airport waits. The pilot program is being launched at the Minneapolis Saint Paul Airport. Two thousand frequent fliers, handpicked by Northwest Airlines, are being given background checks so they can bypass regular lines when they travel.

Companies that do business with New York City will have to provide benefits for same-sex partners. The city council overturned Mayor Bloomberg's veto of the same-sex benefit bill. It requires companies with large city contracts to provide benefits equal to those offered for traditional married couples.

Also still to come on DAYBREAK, the missing soldier in Iraq, his family awaits for word now that a video may reveal his fate.

Then, who would steal the yellow ribbons intended to honor America's soldiers? Well, the answer may surprise you and may even make you smile, of all things.

And, today's business buzz: Is there turbulence ahead for United Airlines? We'll answer that.

This is DAYBREAK for June 29.

(COMMERCIAL BREAK)

NGUYEN: We have your news, money and weather, plus a little sports as well. The time right now is 6:15 Eastern. And here's what's all new this morning.

Three more rockets were fired into Israeli communities near the Gaza Strip. The attacks came after the Israeli military hit a Palestinian broadcast station and began moving troops into northern Gaza. Several rockets were also fired into Israelis areas yesterday.

The U.S. has opened a formal diplomatic office in Libya for the first time in almost a quarter-century. It's the next step in the normalization of relations with Libya and its leader, Moammar Gadhafi.

In money, gas prices have hit their lowest point in the last two months. The average price for a gallon of regular unleaded is $1.92, but that is still 40 cents more than what we paid last year.

In culture, singer Gloria Estefan announced that her upcoming tour will be her last, but Estefan isn't totally retiring. She'll begin work on a book, a movie, and will still write and record new music.

In sports, American Andy Roddick has reached his second straight Wimbledon quarter final. Roddick advanced with an impressive straight set victory over German Alexander Popp.

(WEATHER BREAK)

NGUYEN: An American hostage held in Iraq may have been killed by his captors. Family and friends gathered in their Ohio hometown to pray for Specialist Matt Maupin. The family isn't commenting on reports from Al-Jazeera that Maupin was executed by his military kidnappers.

Pentagon correspondent Barbara Starr has more details.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): The picture is dark and grainy, a man kneeling with his back to the camera. The Pentagon says it cannot confirm this is Specialist Matt Maupin. But Al-Jazeera television said in addition to the less than the second of video it aired, other frames do show a man being shot. The Pentagon confirmed that account, but the frames of the killing were not broadcast.

SPC. KEITH MATTHEW MAUPIN, U.S MARINE HOSTAGE: My name is Keith Matthew Maupin.

STARR: The only known pictures of Maupin were shown shortly after he was captured on April 9th when his convoy was ambushed outside Baghdad.

Al-Jazeera also showed a statement it said it received with the video from Maupin's alleged captors, a group calling itself the Sharp Sword Against the Enemies of God and his Prophet. The group claimed to have killed the 20-year-old soldier from Ohio over U.S. policies in Iraq.

As word of the tape circulated, the Army contacted the Maupin family to warn them the worst news might be coming but that the military couldn't confirm anything.

MAJOR WILLIE HARRIS, U.S. ARMY SPOKESMAN: There's no indication thus far that that tape contains footage of Matt Maupin or any other Army soldier.

STARR: The Pentagon also was worried about the fate of Marine Corporal Wassef Ali Hassoun, last seen on June 19, reported missing to his family, now apparently seen blindfolded with a sword over his head, also on Arab television. No one is sure how he came to be in the hands of the insurgents.

His father in Lebanon pleading for his son's life.

UNIDENTIFIED MALE (through translator): I plead the authority of Islamic scholars and everyone who has mercy in his heart and fears God. I ask them for the sake of God, Prophet Muhammad, and their children to release my son. And I thank them, and they will have great reward from God.

STARR (on camera): Insurgents holding the hostages do not appear to be letting up on their campaign of terror, even now that power has been transferred back to Iraqi hands.

Barbara Starr, CNN, the Pentagon. (END VIDEO CLIP)

NGUYEN: Despite the return of Iraqi sovereignty, more U.S. troops will be heading over there. The Army is planning an involuntary call-up of about 5,600 Reserve soldiers from the seldom- used individual ready reserve. Some of the soldiers could be deployed within a month.

An Army official says the mobilization will last through the rest of this year, and the Army is expected to formally make this announcement tomorrow. About 138,000 U.S. troops currently serve in Iraq.

Iraq's national security adviser will be the guest on "AMERICAN MORNING." That is at the top of the hour at 7:00 a.m. Eastern.

It's time now for a little business buzz.

Three strikes, you're out, right? Well, United Airlines hopes there is an exception to that rule.

Carrie Lee has the story, and she's at the Nasdaq Marketsite.

Hi there -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS: Hi, Betty.

Not looking too good for United Airlines today. The company has been seeking about $2 billion worth of loans to come out of chapter 11 bankruptcy protection, and it doesn't look like that's going to happen, at least from the U.S. government.

The nation's No. 2 troubled airline, United, which is a unit of UAL, had cut back its request for a loan guarantee to $1.1 billion. But the Air Transportation Stabilization Board, which earlier had rejected a $1.6 billion request, has denied this request as well. And the board says it's not going to entertain anymore requests for help from United.

So, United is basically going to have to try to go out on its own, raise this money from a private equity investor. It doesn't mean too much for passengers at this point. They're going to continue operations as they have been throughout bankruptcy. They've been in bankruptcy since 2002.

Obviously, though, Betty, United is going to have to scramble to try to come up this money if it wants to continue operations. One airline expert says don't expect United to come out of bankruptcy until 2005 at the earliest. High labor costs, high fuel costs these days are certainly not helping things.

Back to you.

NGUYEN: They're going to have to find that money on their own. All right, Carrie Lee, thank you.

Well, what to wear? A private company is trying to answer that question for its nightclub patrons. But the dress code isn't going over well in one community. We'll tell you where and why.

(COMMERCIAL BREAK)

NGUYEN: It's time for our DAYBREAK "Eye Opener."

In Iowa, the Seskowski (ph) family was wondering who was stealing the yellow ribbons off trees in their yard. Well, the ribbons were for their son, who was stationed in Iraq. So, they set up a video camera, and here you can see the ribbon rip-off in progress. It's kind of hard to tell. But police probably won't arrest the ribbon- stealing squirrel, as you see there, since they don't make handcuffs that small.

A Louisiana man is in a much better mood today after hitting a big-time jackpot. David Chesnut (ph) was blowing off steam after a hard day at work when he parlayed $20 into more than $1.8 million at the slot machines. He isn't sure exactly what to do with the money. I think I could help. But he says one thing is for sure: His 1997 Chevy Cavalier is history.

There is a debate over dress codes in downtown Louisville, Kentucky. A new nightclub district is restricting access to people who wear sports jerseys, sleeveless shirts or backwards baseball caps. The ACLU contends the policy is discriminatory toward African- Americans. But visitors to the downtown district are split.

One religious leader in the community has said that he has developed a compromise. He says a dress code should exist, but it should only restrict sagging pants, bare midriffs and gang-related clothing.

Now, we do want to tell you more about the breaking news at this hour; this time, out of Turkey. News agencies are reporting an explosion on a plane at Istanbul Airport. Turkish police say one person was injured. The city is hosting, as you recall, the NATO summit. The plane was reportedly being cleaned after landing. Now, President Bush is set to fly out of the city just hours from now. And, of course, we will continue to monitor this.

Right now, we want to go to a press conference in Baghdad with Prime Minister Ayad al-Allawi.

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