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CNN LIVE AT DAYBREAK

Two Russian Airliners Disappear From Radar Minutes Apart; Examining Impact of Amber Frey's Testimony

Aired August 25, 2004 - 06:00   ET

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

CAROL COSTELLO, CNN ANCHOR: Two Russian airliners disappear from radar minutes apart. There are two crash sites this morning and dozens of people dead.
It's Wednesday, August 25.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, one of Iraq's top clerics arrives back in Iraq from London and says the city of Najaf needs to be rescued. But Grand Ayatollah Ali al-Sistani isn't saying how he thinks that should happen. The cleric is asking all Iraqis to march on Najaf, where U.S. and Iraqi forces have been battling insurgents.

The U.S. military hits hard in Fallujah, too, this morning. U.S. planes and tanks pounded insurgent positions in the city west of Baghdad. No word on casualties.

Could there be more legal action in the Iraq prisoner abuse scandal? A Pentagon source tells CNN that's what Major General George Fay may recommend in a military report he's putting out today.

And back overseas, a dozen people reported dead in a typhoon that's lashing Asia this morning. The storm is triggering mudslides and blackouts in Taiwan. It's now heading for China, after drenching Japan earlier -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

We rarely show you this computer, but I really wanted to show you what's going on here. Two typhoons. In fact, one super typhoon. That's the one that moved in just to the north of Guam, moved over Saipan here in the Mariana Islands. It's making a turn on up toward southern Japan.

Right now this is still a 145 knot storm, still a category five hurricane, or, if you will, a super typhoon, because it's over here in the eastern Pacific, the western Pacific, rather.

Here you go. This entire storm here moving right over Taiwan, this little island right there Taiwan. Many areas there are calling it over a meter of rain. That's a meter stick. That's 39 inches of rain in the past three days. Mudslides going to be a huge problem in this area here for the next couple of days, especially that island in the middle. It goes up 13,000 feet. That little island is 13,000 feet tall. There you go.

(WEATHER REPORT)

COSTELLO: Terrorism is the working theory in Russia this morning. Two jet liners crash within minutes of each other. Eighty- nine people are dead.

Ryan Chilcote has more details for you from Moscow.

(BEGIN VIDEO TAPE)

RYAN CHILCOTE, CNN CORRESPONDENT: Both these Russian planes took off from the same Moscow airport within the space of just 40 minutes before they eventually went missing almost just literally a couple of minutes apart from one another. The first plane was on its way to the Russian city of Volgograd. It had more than 40 people on board. About 30 minutes into that flight, it simply disappeared from the radar of the Russian air traffic controllers.

Eyewitnesses in the Tula region in southern Russia reported hearing the very loud sound of a plane and then some explosions before they say they saw this plane crash into the Russian countryside.

Right now there is a large team of search and rescue officials. Unfortunately, they say there is no one to rescue at that crash site. They believe that everyone that was on that plane passed away. They say they have found a black box in addition to a lot of other debris and several bodies from that plane.

Now, secondly, there was another plane, this was the first of the two planes to take off. But this plane disappeared literally a couple of minutes after the first one. Again, it was into its flight and all of a sudden it disappeared from radar screens. It was on its way to the Russian resort town of Sochi. It, too, had a bit more than 40 people on board. There's a very large search going on. Subsequently, search and rescue teams found the crash site. They're going through it. It's an enormous site. Some 40 kilometers in radius is the area that they're searching. They say that they've found about 20 or more bodies so far.

Now, what's interesting is that we have two reports, unconfirmed at this point, coming from officials who do not want to be identified, talking to the Russian media, saying that this plane, this second plane that we're discussing, actually issued some kind of hijack alert just before it went off the radar screen. Its hijack alarm went off, alerting traffic controllers to the fact that there was some kind of distress, some kind of, perhaps, hijacking under way on that plane.

Another report suggesting that there was an attack actually on the crew of that plane. Apparently a traffic controller calling the police in charge of the aviation security to say that that crew had been attacked. What we do know for sure is that the Russian Federal Security Service, that's the successor agency of the KGB, has been tasked with the job of getting to the bottom of what has happened. They say they are looking at all scenarios right now, including, of course, mechanical failure, although they say they are particularly studying very carefully the possibility that this was terrorism.

Ryan Chilcote, CNN, Moscow.

(END VIDEO TAPE)

COSTELLO: We're going to have an aviation expert in at the bottom of the hour to talk more about this.

More legal action this morning, a Pentagon source telling CNN Major General George Fay may recommend that today when he puts out a new report on the Iraqi prisoner abuse scandal. In a report out yesterday, former Defense Secretary James Schlesinger said there was an "Animal House" mentality at the Abu Ghraib Prison. And he says the scandal goes far beyond the prison walls.

(BEGIN VIDEO CLIP)

JAMES SCHLESINGER, FORMER DEFENSE SECRETARY: We believe that there is institutional and personal responsibility right up the chain of command as far as Washington is concerned.

(END VIDEO CLIP)

COSTELLO: Schlesinger was asked if Donald Rumsfeld should step down over the scandal. He says the defense secretary should keep his job.

As for Rumsfeld, he will not be in court when it comes to the prisoner abuse scandal, for now. A military judge says defense lawyers cannot call him to testify in the court martial of Javal Davis. He's a military police officer accused in the Iraqi prisoner abuse scandal.

Davis' lawyer says Rumsfeld should testify, though.

(BEGIN VIDEO CLIP)

PAUL BERGRIN, JAVAL DAVIS' ATTORNEY: Because as I laid out in the courtroom -- and I thought meticulously, step by step -- I thought I unequivocally proved, beyond any shadow of a doubt whatsoever, that Rumsfeld had knowledge of the interrogation techniques in this case, that he approved of aggressive intelligence acquisition and that he was part and parcel of what led to the allegations at Abu Ghraib.

(END VIDEO CLIP)

COSTELLO: The judge says he might rethink his ruling if the defense can more closely link Rumsfeld to the scandal.

And that brings us to our e-mail Question of the Morning. Should Donald Rumsfeld testify in the Abu Ghraib case? Let us know what you think at daybreak@cnn.com. That's daybreak@cnn.com.

More suspected al Qaeda fighters will face a military tribunal in Cuba. In the first American military tribunal since World War 2, pretrial hearings are finally under way. A Yemeni man heard the charges against him yesterday. Three others are scheduled to go before the panel of military judges this week. Five hundred eighty- five suspects are currently being held by the United States at Guantanamo Bay and most have been there for at least two years without being charged.

In other stories across America this Wednesday, in New Jersey, Governor James McGreevey has been talking to the Feds. A source tells CNN that FBI agents have interviewed the governor as part of the probe into claims that a former aide tried to blackmail him. McGreevey announced his resignation this month, after the former adviser threatened to sue him over alleged sexual harassment.

In California, investigators are questioning a Wisconsin man in connection with the shooting deaths of a young couple. The bodies of the Christian camp counselors were found on a northern California beach last week.

And in Colorado, we might not be seeing much of Kobe Bryant's upcoming sexual assault trial. The judge is putting strict limits on the use of cameras in the courtroom. He says too much camera coverage could prevent a fair trial for the NBA star.

And the woman who had an affair with Scott Peterson in the midst of his wife's disappearance has wrapped up her testimony in his murder trial.

As our David Mattingly reports, she didn't supply the smoking gun prosecutors were hoping for.

(BEGIN VIDEO TAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): As Amber Frey took the witness stand, probably for the last time, it wasn't her much anticipated testimony that left the courtroom buzzing. Again, it was the tapes she recorded while cooperating with the police.

In this conversation, introduced by the defense, a clearly annoyed Frey pressed Scott Peterson for information, an exchange that appeared to bring Peterson to tears.

SCOTT PETERSON, ON TRIAL FOR MURDER: I wish I could tell you everything.

AMBER FREY, FORMER MISTRESS OF SCOTT PETERSON: Save your tears.

PETERSON: I'm so sorry.

MATTINGLY: But throughout cross-examination, defense attorney Mark Geragos never attacked Frey's character. Instead, he used her testimony to contradict investigators and her tapes to portray Peterson as unwavering in proclaiming his innocence, pointing out he never told Amber he loved her.

FREY: She's missing because you love me, right?

PETERSON: Amber, she's missing because someone abducted her.

CHUCK SMITH, LEGAL ANALYST: At the end of the day her testimony does not make or break the case. It still is a thin, circumstantial evidence case. Her testimony overall adds to the circumstantial evidence but not in a overwhelming way.

MATTINGLY: Frey emerged as the central figure in this high- profile case in dramatic fashion more than a year ago. The massage therapist and, at the time, single mother of one magnified the already intense suspicion surrounding Peterson when she revealed she was his girlfriend and that he had lied to her.

FREY: I was introduced to him. I was told he was unmarried. Scott told me he was not married.

MATTINGLY: It wasn't until after Peterson was arrested and charged with the murders of his wife, Laci, and their unborn child that it was revealed Frey was coached and cooperating with investigators.

Prosecutors played recorded conversations catching Peterson in flagrant lies. But when Frey was finished, Peterson's family did not believe she said much to support a case for murder.

JANEY PETERSON, SISTER-IN-LAW: She testified to an affair. She testified to a man who was having an affair whose wife went missing. And you know...

UNIDENTIFIED MALE: That's it, then.

UNIDENTIFIED FEMALE: Not the star witness everyone says.

UNIDENTIFIED MALE: That's enough.

MATTINGLY: But the value of Amber Frey's testimony will be determined by the jury, in a still largely circumstantial case that accuses Scott Peterson of being much more than a lying, cheating husband.

(END VIDEO TAPE)

COSTELLO: Will New York lose millions or make millions on the Republican national convention? At 13 minutes past the hour, there seems to be disagreement among New Yorkers on the convention's financial impact on the city. We'll explain in a live report.

Then at 17 minutes past the hour, days of fighting around a holy shrine in Najaf. You've seen how it's covered here, but how does the Arab world view recent developments in Iraq? Our senior Arab affairs editor will join us with some perspective.

And later, limiting your intake of sugary sodas -- it can help more than your waistline. We'll explain at 50 minutes past the hour.

Now here's a look at what else is making news this Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Wall Street will open with mixed markets this morning.

The Dow up 25 1/2 points.

The Nasdaq down 2 points.

The S&P 500 is up, oh, about a 1/2 point.

Time for a little business buzz now. The Republican national convention hits New York City next week. Will it be a boom or a bust for the local economy?

Carrie Lee is live at the Nasdaq market site.

And I'm just reading my RNC notes. And Mayor Bloomberg says it will generate, what, $250 million for New York?

CARRIE LEE, CNN CORRESPONDENT: $265 million, Carol. That's what Mayor Bloomberg is saying. It really depends on who you ask, though, or so it seems, that is for the economic impact of the RNC here starting next Monday.

Now, Bloomberg saying $265 million in terms of an economic gain. He's citing things like 50,000 visitors to the city, including 14,000 delegates. And even though Bloomberg is taking into account things like local business concerns, also a potential flight of New York City residents to outside of the city, the city comptroller is pegging this at a $300 million loss. The comptroller's office taking into account about $281 million in losses of the city's gross city product. And the comptroller's office is also taking security into account, saying that the NYPD tab, the New York Police Department, is going to come in at about $78 million.

The big question, Carol, here, how much are visitors really going to spend in the city? Because a lot of them are getting freebies and discounts on hotel rooms and attractions.

And in terms of local business, you know, anecdotally we're hearing things like Nobu, one of the best restaurants in the city, still has reservations available. Usually they're sold out a month in advance. So a little tip for people looking for a nice dinner reservation.

COSTELLO: Thanks, Carrie.

LEE: OK.

COSTELLO: Carrie Lee live from the Nasdaq market site.

Your news, money, weather and sports. It is 6:14 Eastern.

Here's what's all new this morning.

Two downed Russian airliners may have been crashed by terrorists. That's the theory intelligence experts are working on right now. Roughly 89 people are feared dead in those crashes.

U.S. air strikes not letting up in Fallujah. The new strikes are a response to attacks on Marines there. U.S. forces also used tanks and artillery on a number of Iraqi militant positions.

In money news, Federal Reserve Chairman Alan Greenspan says the economic recovery has become both stronger and more sustainable over the past year. He'll speak again on Friday. Investors will look for clues on how quickly interest rates will rise.

In culture, from our gross and disgusting file, the Dave Matthews Band is being sued for $70,000. Why, you ask? Well, the State of Illinois says the band's bus driver dumped 800 pounds of liquid human waste into the Chicago River directly onto a boat crowded with 100 tourists.

In sports, Iraq's Olympic version of the dream team won't be playing for the gold. Paraguay beat Iraq 3-1 last night in soccer. Still, Iraq could win bronze if the team beats Italy on Friday -- Chad.

MYERS: Hey, Carol, good morning.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

We are continuing to watch the rather up and down city of Najaf. Despite a threat to wipe out Muqtada al-Sadr's militia, the Imam Ali Shrine remains in his control.

So, after multiple ultimatums from the Iraqi government and no final action, it's beginning to sound like the boy who cried wolf, at least that's the way it sounds to many Americans.

We wanted to hear the Arab voice, so our senior Arab affairs editor, Octavia Nasr, joins us now on DAYBREAK.

So what is up with this? I mean the Iraqi Defense Ministry used very strong language and then nothing happened.

OCTAVIA NASR, CNN CORRESPONDENT: Right. It's becoming laughable. If you watch Arab media and read Arab newspapers, they're starting to laugh at these ultimatums. You said Americans feel this way. It seems that Arabs feel that way, as well.

Today, the tone is a bit different on Arab media. It seems that they believe that today is the day to resolve the issue of Najaf. Unfortunately, they're painting the picture as it has to be a military attack and they expect it to happen today. They expect a lot of people to die in the process. A grim day on Arab media today.

COSTELLO: Well, you know, let's go back to these ultimatums and then, you know, nothing happens. At some point, doesn't the government lose credibility and isn't that kind of forcing their hand right now to take some sort of military action in Najaf?

NASR: It seems that it has lost credibility already. If you listen to the experts and the observers and the analyst, that's what they're saying. They're saying that this is a test for the Iraqi interim government to show resolve, to show that it knows what it's doing. But this business of they have only a few hours to either surrender or else face, you know, death or arrest, I mean nothing is happening.

Now, you have to understand that Najaf is a sacred city and of course the Imam Ali Shrine is the most sacred of shrines in -- for Shia around the world. So it's not easy. It's not an easy task for the Iraqi government to storm into the mosque or do something about it militarily.

COSTELLO: Well, I'm sure like -- I mean most of us really do understand that.

A more moderate Shiite cleric is back in Iraq. He has asked other Shiites to march on Najaf to save the city.

Will that have any effect?

NASR: I just heard an expert on Al-Arabiya just say that this is a great idea, but it's a bit too late. He said he doesn't even know if these people are -- or if people are going to march, first of all, and if they're going to march in big numbers, second. And, third, whether they're going to make it into the mosque or not. He said the situation is so dangerous. Reconnaissance planes are in the air. That's, again, that same expert on Al-Arabiya. He said reconnaissance planes are in the air checking things out. The troops on the ground ready to go. He said it's a bit too late to call on people to march because that's not going to help at all.

COSTELLO: So the stalemate goes on.

Octavia Nasr, thanks for joining DAYBREAK this morning.

NASR: Thank you.

COSTELLO: National security is at the forefront of the presidential race this election year. In about 10 minutes, we continue our special series, The Candidates, The Issues, as we examine where they stand on the issue of national security.

But first, she was a star at the Summer Games in 2000, but we haven't seen much of Marion Jones in Athens. Ahead, a live report from Greece with details on when she'll be competing.

You are watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: An American wins the gold in record time at the Athens Olympics. That's in the hurdles, which is just one high point from today's games.

For more details, let's check in with Larry Smith, live in Athens -- good morning.

LARRY SMITH, CNN CORRESPONDENT: Hi, Carol.

How are you?

You know, imagine working four long years, the long hours, the sweat, the expense, to get down to just 12 seconds that could determine who you are maybe for four years or maybe even for life. To take an example, as you mentioned, last night's women's 100-meter hurdles. Now the favorite is Perdita Felicien of Canada. She stumbles and falls at the first hurdle, takes out the competitor next to her. And in the end, ecstasy for Joanna Hayes, the American, who not only wins a gold medal, but does it in a time of 12.37 seconds. That sets a new Olympic record that hadn't been broken since 1988. By the way, her teammate, Melissa Morrison, taking bronze in that one. Hayes takes gold in the hurdles.

Now, Marion Jones is someone we haven't heard from in this 28th Olympiad. She was the darling of the games in Sydney, with three gold, two bronze medals, including one on the long jump. Well, tonight, she will finally take part in the long jump, as the first heat gets under way around 7:30 local time here in Athens. That's 12:30 on the East Coast.

Jones, the subject of some controversy regarding the BALCO situation earlier this year. She may run in a relay race for the U.S. this weekend when the games come to a conclusion.

And Rulon Gardner, another star of those games in Sydney. He won gold in 2000 and knocked off the Russian great, Kareline, that everyone felt was one of the greatest wrestlers ever. Well, he lost today in his semifinal match to an opponent from Kazakhstan. So he will not get a chance to repeat his gold medal. Rulon Gardner going for a bronze medal later on today.

That's the story for now from Athens.

Carol -- let's go back to you.

COSTELLO: All right.

Larry Smith live in Athens.

Thank you.

Headlines coming your way in two minutes.

But first, this is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Two crash sites, dozens dead -- a dark day for Russia after two planes crash mysteriously.

It is Wednesday, August 25.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, Grand Ayatollah Ali al-Sistani arrived back in Iraq from London this morning. The cleric is calling on all Iraqis to march to Najaf to "rescue the city from fighting."

U.S. air strikes rocked the Iraqi city of Fallujah. The bombings came after U.S. Marines were shot at. U.S. warplanes, tanks and ground fire pounded militant positions. It is the second day of bombing in Fallujah.

Later today, there will be yet another report looking at the military's prisoner treatment at Iraq's Abu Ghraib Prison. A Pentagon source tells CNN the latest report will recommend that more than two dozen individuals be prosecuted.

And one of the first suspected Taliban fighters at Guantanamo Bay today. You're looking at Australian David Hicks. He's scheduled to face a military tribunal to hear the formal charges against him -- Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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