The Web    CNN.com      Powered by
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SERVICES
 
 
 
 
 
 
 
SEARCH
Web CNN.com
powered by Yahoo!
TRANSCRIPTS


 

Return to Transcripts main page

CNN LIVE AT DAYBREAK

Oil and Politics; Rice in Iraq; Afghan Aftermath

Aired May 16, 2005 - 05:00   ET

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


CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, the deadly anti-American demonstrations in Afghanistan last week were apparently based on faulty information.
Plus, the U.S. secretary of state delivers a message to Iraqis' interim government: get on with it.

And strap on your lifesaver, Jedi Knights. It's one "Star Wars" fanatic with a very expensive habit.

May the force be with you on this Monday, May 16. You are watching DAYBREAK.

And good morning to you. From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

"Now in the News," Russia's deputy parliament speaker is accused of profiting from the U.N. oil-for-food program. He has previously denied such reports. The Senate report alleges several other top Russian officials also profited.

"Newsweek" magazine is backing off a report that sparked these anti-American demonstrations last week that killed at least 15 people. "Newsweek" had alleged that U.S. interrogators desecrated copies of the Koran while questioning prisoners at Guantanamo Bay, Cuba.

Defense Secretary Donald Rumsfeld answers questions today about the base closing list he released last week. He appears before the Base Closure and Realignment Commission at 1:30 Eastern Time.

As you well know, Florida was clobbered by a record number of hurricanes last year. We will learn what the prediction is for the upcoming Atlantic hurricane season this afternoon at 12:30 Eastern.

Chad will be -- I'm so glad you're back, Chad.

CHAD MYERS, CNN METEOROLOGIST: I'm back, Carol.

COSTELLO: Please never leave again.

MYERS: Well, it was my birthday.

COSTELLO: I don't care.

MYERS: OK.

COSTELLO: No, I do care it was your birthday, but please don't go away again. But happy birthday.

MYERS: Thank you. Another day older and deeper in debt, as the song goes.

COSTELLO: It's probably true.

(WEATHER REPORT)

COSTELLO: Oh, but first, do you want me to sing "Happy Birthday" to you?

MYERS: Oh my goodness. Look at that. It was yesterday, Carol.

COSTELLO: Ah. We have the birthday song. It's a rock 'n' roll version of the birthday song, because I will not sing, because it would offend people, frankly, this morning. But Chad, again...

MYERS: Thank you.

COSTELLO: ... happy, happy birthday, feliz cumpleanos, and all that stuff.

MYERS: Forty-two years and one day.

COSTELLO: Oh, you're getting old.

MYERS: I know. So is my hair. And it doesn't want to stay with me.

COSTELLO: We'll get back to you in a bit.

MYERS: OK.

COSTELLO: Thank you, Chad.

MYERS: You're welcome.

COSTELLO: Our top story this morning, accusations of illegal profits in the United Nations oil-for-food program. Today, a Senate panel probing the program says a top Russian political figure -- well, a lot of figures -- or a lot of top government officials were involved in that money-making scheme, including some figures close to the Russian president, Vladimir Putin.

CNN Senior U.N. Correspondent Richard Roth has more for you.

(BEGIN VIDEOTAPE)

RICHARD ROTH, CNN SR. U.N. CORRESPONDENT (voice-over): Vladimir Zhirinovsky may be best known for his ultra-nationalist views, his bawdy behavior during three failed runs for president of Russia, or his antics inside the Russian parliament. But according to U.S. congressional investigators, Russia's deputy parliament speaker was also a recipient of lucrative vouchers from Saddam Hussein's regime to buy Iraqi oil under the U.N.'s oil-for-food program. A report released today alleges that Zhirinovsky and his political party were allocated 76 million barrels of Iraqi crude between 1997 and 2002. The oil was allegedly a reward for supporting Saddam's regime and calling for an end to economic sanctions against him, according to former top Iraqi officials interviewed by Senate investigators.

Iraqi oil ministry records cited in the report allege Zhirinovsky even hired an American company, Houston based Bayoil, as a middleman to take possession of some of his oil and sell it on the open market. Bayoil and its CEO are under federal indictment for paying Saddam illegal surcharges to get Iraqi oil.

The alleged profits for Zhirinovsky on his deals? About $9 million. But according to the Senate report, Zhirinovsky was not the only Russian politician rewarded by Iraq.

The report says President Vladimir Putin's United Russia Party got oil allocations, as did top Putin adviser Alexander Voloshin and the Russian foreign ministry. In all, some 90 million barrels to top Russian officials and $3 million profit, according to the Senate report. Former Iraqi officials told investigators they were "buying influence" and providing "compensation for support," especially at the U.N. Security Council.

(on camera): Russia got about a third of the oil sold under oil- for-food. And according to the Senate report, many Russian companies paid surcharges to Saddam Hussein in cash, delivered to the Iraqi embassy in Moscow. When the cash hull reached $3 million to $4 million, the report says it was couriered to Baghdad in a diplomatic pouch.

Richard Roth, CNN, New York.

(END VIDEOTAPE)

COSTELLO: Condoleezza Rice was in Baghdad over the weekend to press the flesh and to tell the interim government to get on with drafting a new constitution.

Let's head live to Baghdad now and Ryan Chilcote for more on the secretary of state's visit.

Hello, Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Good morning, Carol.

Well, this was a real surprise trip from the secretary of state for everyone here in Iraq, and even for many people in the United States. Reportedly, a lot of people close to her in the State Department didn't even know about this trip until just a short while before she left. Of course the reason for that, concerns about the security of the secretary of state during this visit.

Her first stop was the Kurdish northern city of Erbil, way up in the north of Iraq. That's where she met with Kurdish officials, thanking them for their cooperation over the last two years.

From there, she traveled to Baghdad. That's where she spoke to U.S. diplomats and troops in one of Saddam's former palaces, again thanking them for their service to the United States and in the reconstruction and security operations here in Iraq.

And then after that she met with the Iraqi prime minister, Ibrahim al-Jaafari, applauding the prime minister and the prime minister's government for the momentum that they seem to have here and finally getting that government formed a little bit more than two weeks ago. She also urged the government to keep the momentum up and to stick to a timeline that calls for this government to get a new constitution here in Iraq drafted by mid-August, saying that it was very important that they keep this momentum going.

Finally, she asked this new government, which is primarily comprised of Shiites and Kurds, to be as inclusive as possible of Sunni Arabs. Sunni Arabs enjoyed a great deal of power under Saddam Hussein, many of them feel like they've been shut out of the political process. And Dr. Rice at least believes that it's important to include them in this new government, that that will somehow help to deflate the insurgency here -- Carol.

COSTELLO: Ryan Chilcote live in Baghdad this morning.

Turning out attention now to Afghanistan and the aftermath of deadly anti-American riots there. Just hours ago, U.S. military officials in Kabul talked to reporters about the violence. It was sparked by a "Newsweek" magazine story that the magazine is now backing away from.

And that's not all. There's also growing debate about the U.S. presence in the war-torn nation.

Journalist Nick Meo was at the news conference. He joins us now.

What did they say, Nick?

NICK MEO, JOURNALIST: Well, the U.S. ministry commanders are saying today that they are prepared to review their operating tactics on the ground after these devastating riots. In many areas of Afghanistan where the Taliban insurgency continues, especially in eastern and southern Afghanistan, a lot of Afghans complain about the way -- about the tactics that U.S. troops. Especially -- especially, they complain about intrusive house searches, where soldiers sometimes barge into houses looking for weapons. That can be extremely insulting in Pashtun culture.

Another complaint is that sometimes innocent people are arrested perhaps because of faulty intelligence and taken to Guantanamo. So these are the kinds of Afghan concerns that the military says it's now going to be looking into.

COSTELLO: And Nick, going back to this "Newsweek" article, I guess that was maybe the straw that broke the camel's back, so to speak. Specifically, this "Newsweek" article was about 10 lines long, and it talked about how guards at Guantanamo Bay apparently flushed the Koran down the toilet. And then they had this big demonstration in Afghanistan where there were deaths.

Tell us a little more about that.

MEO: Well, it turned out to be the worst anti-American riots, the worst riots, in fact, since the fall of the Taliban. Over 100 people were injured; around 15 were killed. Millions of dollars of damage was done.

This rather unexpected development today on the story may do something perhaps to soothe feelings in Afghanistan. I've been speaking to Afghans here, and many of them think that perhaps now tensions will calm a bit.

The story was regarded as a great insult by many -- many Muslims here. Of course as far as the extremists are concerned, a lot of damage has already been done. A very powerful weapon was handed to the extremists last week.

COSTELLO: And "Newsweek" issued a retraction. Is that what you're talking about when you say maybe things will calm down in the region?

MEO: Yes. I think, of course, that the allegation was that the Taliban -- the allegation was that the holy Koran was desecrated during interrogations in Guantanamo. That was something that was extremely emotive indeed in Afghanistan in these conservative areas.

It now seems that those -- that that claim doesn't seem to hold much water. And I think what -- moderate Afghan opinion may be calmed considerably by that development.

COSTELLO: Nick Meo joining us live from Kabul, Afghanistan. Thank you, Nick.

A new development in the standoff over North Korea's nuclear program. Officials from the two Koreas have been meeting this morning, and South Korea is getting serious. It says it's ready to make a new and serious offer if North Korea returns to six-nation nuclear talks.

The talks, which included the United States, have been stalled now for almost a year. No word on exactly what South Korea is willing to offer, though.

In news "Across America" now, here is a small jet coming in for a landing in Atlantic City, New Jersey. But as you can see, instead of stopping it just keeps on going and going and going until it ends up in the drink (ph). Four people aboard suffered only minor injuries.

The pilot says his brakes failed, but a witness on the ground says the plane was trying to land on a runway that is not meant for jets. Investigators plan to fish the plane out of the bay sometime today. Autopsy results could be released early this week on a 20-year- old rower who died during a regatta over the weekend. Thad Leo (ph) collapsed on the boat after his team crossed the finish line. The Dad Vail Regatta in Philadelphia draws the best college rowing teams from around the country.

The 20th anniversary AIDS walk in New York drew thousands of participants and millions of dollars in donations. As many as 45,000 people took part in the 10-kilometer fund-raiser. That's 10 times as many as took part in the first walk in 1985. The event brought in nearly $6 million in donations.

Did you hear what Mexican President Vicente Fox said on Friday? Ooh, it has tempers flaring north of the border.

Fox was criticizing U.S. immigration policies and praising the work ethic of Mexican immigrants. But he is drawing fire over the way he did it. Listen to the translation.

(BEGIN VIDEO CLIP)

VICENTE FOX, MEXICAN PRESIDENT (through translator): There's no doubt that Mexicans filled with dignity, willingness and ability to work are doing jobs that not even blacks want to do there in the United States.

(END VIDEO CLIP)

COSTELLO: Fox's office is trying to downplay his comments, but civil rights leaders of the United States are not buying it.

(BEGIN VIDEO CLIP)

REV. AL SHARPTON, NATIONAL ACTION NETWORK: It's very biased and racist in its statement to suggest that we are that measure of how low you could go. And to think that a head of state would say this, and it go like it's nothing, we've had disc jockeys on radio and TV sports commentators that have been suspended for worse -- or for not as much, rather. I don't see how this president, who has a working relationship with the president of this country, who has trade agreements and other things that African-Americans and our tax dollars support, can just offend us and say we just misunderstand what he's saying and move on.

(END VIDEO CLIP)

COSTELLO: Fox's office has put out a statement. It says, "The president expresses his enormous respect for minorities, whatever their racial, ethnic and religious origin." The statement goes on to say, "Their purpose was none other than to make clear the importance that Mexican workers have in the development and progress of U.S. society."

And Chad, all of this brings us to our DAYBREAK e-mail "Question of the Day."

MYERS: "Misunderstood," Carol. That's it.

What were those comments? How do you feel about them? DAYBREAK@CNN.com.

Jesse Jackson goes on to say, "They were unwitting, unnecessary and inappropriate."

What do you think? E-mail us this morning.

COSTELLO: We want to know what you think. DAYBREAK@CNN.com.

Still to come this morning, in our 24/7 world more mothers are working alternative hours. At 36 minutes past, we'll talk about how that might not be a bad thing for the family.

And later, just in time for the new "Star Wars" movie, you'll meet a guy with one heck of a collection.

But first, here's a look at what else is making news this Monday morning.

(COMMERCIAL BREAK)

COSTELLO: Time now to check the markets. You could call it a disappointing day so far in the international markets. Japan's Nikkei closes down nearly 102 points. Britain's FTSE trading down 3.5 points, and the German DAX down nearly six points this morning.

Your news, money, weather and sports. It's 5:18 Eastern. Here's what's all new this morning.

"Newsweek" magazine is apologizing for its part in sparking deadly protests in Afghanistan. The magazine says it made an error reporting that U.S. interrogators had desecrated the Koran. Those charges fed anti-U.S. violence that led to as many as 15 deaths.

The issue of the Senate's filibuster rules and President Bush's judicial nominees could come to a head this week. Some senators have been working on a compromise, but no deals have been struck.

In money news, Jane Fonda and Jennifer Lopez are drawing audiences to their new comedy, "Monster-In-Law." The movie was tops at the box office over the weekend with $24 million.

In culture, you'll get your first chance to see "Star Wars Episode 3" this week, but a select few were able to get a sneak preview last night when the final "Star Wars" film was shown at the Cannes Film Festival.

In sports, the war between the Pistons and Pacers is now all even at two games a piece. The Pistons opened up a big lead and cruised to an 89-76 win in game four. Game five set for tomorrow in Detroit -- Chad.

MYERS: And good morning, Carol.

(WEATHER REPORT)

COSTELLO: Thank you, Chad.

MYERS: Yes.

COSTELLO: That's a look at the latest headlines for you.

An update now on a story we have been following. A two-year child porn investigation ends in a way investigators did not expect. They asked for the public's help in identifying this girl seen in sexually explicit photos on the Internet. Now they say she's been adopted by a family and is living under a new name.

(BEGIN VIDEO CLIP)

DET. MATT IRWIN, ORANGE COUNTY, FLORIDA, SHERIFF'S DEPT.: We have identified her. I don't know where she's at. We are working on getting that information. And I understand that there may be ongoing charges in Pennsylvania, which is the state that the -- the victim is from.

(END VIDEO CLIP)

COSTELLO: Police suspect the girl's former adoptive father in her abuse. He is currently serving time for a child porn conviction, but it's not clear if that's related to the girl's case. Something else that's not clear, why authorities didn't find out about this earlier. They're downplaying any lack of communication, so the story's not over yet.

Still to come on DAYBREAK, "Newsweek" is apologizing for its story that sparked violent riots in Afghanistan. We'll explain exactly what went wrong.

And later, one man's obsession with all things "Star Wars."

You're watching DAYBREAK for Monday, May 16.

(COMMERCIAL BREAK)

COSTELLO: It's time for our DAYBREAK "Eye Openers."

Thousands were on hand in Hong Kong for the return of the Bun Festival. Don't worry, these are the edible kind. The main event is to climb up the tower of bun.

Well, the bun tower collapsed. Allegedly 26 are hiatus for the festival. Believe it or not, the bun scrambling is an ancient ritual that dates back hundreds of years.

Now you know.

This piece of artwork is actually edible. It's made entirely of marzipan, and it's part of a new marzipan museum in Hungary. Incase you didn't know, marzipan is an almond paste that's often shaped into things like a good luck pig (ph) or a small piece of fruit. But the shapes of the museum took several months to create. As you can see, they're in shapes of human beings.

Some other very different works of so-called art were on display in New York. Top tattoo artists from around the world showed up and showed off at the 8th annual tattoo convention. And, of course, prizes were given out to the best designs and tattoo bodied parts.

Oh, that was so painful -- Chad.

MYERS: Sure looks it, Carol.

COSTELLO: Pardon?

MYERS: Sure looks -- sure looks painful to me, yes. I can't even...

COSTELLO: Just a little needle going into your skin over and over again.

MYERS: I can't do a paper cut without fainting.

COSTELLO: Time -- actually, we were going to read some e-mail, but our audience must be asleep this morning.

MYERS: Well, everybody's too busy wishing me happy birthday, Carol. Did you see all those -- yes.

COSTELLO: They're stunned that you said you were 42 and you only look 25.

MYERS: Yes. Put down the pipe.

COSTELLO: Vicente Fox's comments, we're talking about them this morning. That is the president of Mexico. We want to know if you think it's racist -- his comments were racist or simply misunderstood.

Should he come out and personally apologize for what he said? E- mail us at DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Good morning. Welcome to the second half-hour of DAYBREAK. From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

"Now in the News," Vladimir Zhirinovsky, Russia's deputy parliament speaker, is accused of illegally profiting from the U.N. oil-for-food program. That accusation comes in a Senate subcommittee report out today. Other Russian politicians, some close to President Putin, also are accused of shady ties to the former Iraqi regime.

"Newsweek" magazine says it was wrong. Deadly anti-American demonstrations in Afghanistan last week were sparked by a report in the magazine that U.S. interrogators had flushed copies of the Koran down the toilet. Now the magazine is backing off its story. The Pentagon's report on closing some military bases gets an airing today. Defense Secretary Donald Rumsfeld appears before the commission this afternoon to defend his report.

Brazilian Tony Kanaan will sit on the pole for this year's Indianapolis 500. Kanaan captured the top spot with a lap in excess of 227 miles per hour.

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


International Edition
CNN TV CNN International Headline News Transcripts Advertise With Us About Us
SEARCH
   The Web    CNN.com     
Powered by
© 2005 Cable News Network LP, LLLP.
A Time Warner Company. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines. Contact us.
external link
All external sites will open in a new browser.
CNN.com does not endorse external sites.
 Premium content icon Denotes premium content.
Add RSS headlines.