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CNN LIVE AT DAYBREAK

Two Terror Suspects Arrested in California; Search Continues for Missing Girl in Aruba

Aired June 8, 2005 - 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: It is Wednesday, June 8.
Links to terror -- the FBI is investigating. Home searched, men arrested, a federal terror probe takes root in northern California.

Also, nine days and counting -- that's how long Natalee Holloway has been missing. Will a court hearing today shed light on her fate?

And think there's too much porn on the Internet? Well, you ain't seen nothing yet.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

COSTELLO: And good morning to you.

We'll have more on the California terror arrests in just a minute.

And also this hour, a politically charged meeting between North Korea and Japan. But not the kind you usually hear about.

And we remember actress Anne Bancroft.

But first, now in the news, it's the battle for the bench. The Senate votes today on the nomination of California Supreme Court Justice Janice Rogers Brown to the federal appeals court for the District of Columbia. Brown was nominated to the post two years ago.

The jury deliberating the child molestation case against Michael Jackson enters its third full day of deliberations this morning. Jackson is awaiting the verdict at his Neverland Ranch.

In Raleigh, North Carolina, 13 drivers are trapped, but only for a little while, after several utility lines came down during a fierce storm. The motorists had to be guided to safety. No one was hurt, but -- Chad, ooh, I bet they were nervous.

CHAD MYERS, CNN METEOROLOGIST: Well, yes. There was wind there, too, obviously. The same storms blew through the Northeast. Wind damage down in some spots. And you never know whether those power lines are actually live or not. And, for the most part, they usually are, until the power...

COSTELLO: And you should stay in your car, right? MYERS: Absolutely. And try not to touch anything metal in the car until they tell you it's safe, yes. You can see that the power there to the light was out. But that doesn't mean that the power to the entire line was out. So you really do have to be very, very careful when that happens.

(WEATHER REPORT)

COSTELLO: We get started this hour with a CNN "Security Watch."

And there is news this morning of possible terror arrests in Lodi, California. Federal agents have arrested four men. Two of those arrested are top Muslim leaders in Lodi. The other two, a father and son, appeared in federal court on charges they lied to FBI agents. The son, Hamid Hayat, is accused of training at an al Qaeda camp in Pakistan. He is being held without bail this morning after a judge says he was a danger to the community.

Supporters of the men think it's a setup.

(BEGIN VIDEO CLIP)

PAMELE PARVEZ, LODI RESIDENT: Their family has a large institution in Karachi, Pakistan that is also known as Farooqia, a center there. And he was actually brought here by the Muslim community of Lodi to start an institution, as this one, that he's been working on for some time. And I think this is just a ploy on the opposition's part because June 16 is coming for the permit and I think it's just their way to try and stop it.

(END VIDEO CLIP)

COSTELLO: The FBI raided the Hayat's home and carried away videos and photos. The two other men are Islamic community leaders who were detained on immigration charges after meeting with the Hayats. The FBI plans to release more information on the case later today.

So, we were wondering this morning, how is the community reacting to word of these arrests and what are people saying about the suspects?

For that, we turn to religion reporter for the "Lodi News- Sentinel," Ross Farrow.

He joins us live from Sacramento, California.

Ross, we just got word of this this morning and we're trying to sort it all out. So let's begin with the father and son first.

How much do you know about them?

ROSS FARROW, "LODI NEWS-SENTINEL: Well, I don't know the father and son, really. I know the other two individuals.

COSTELLO: Well, let me tell our viewers what we know about the father and son. One of the men arrested, 22-year-old Hamid Hayat, he is accused in a federal criminal complaint of training at an al Qaeda camp in Pakistan to learn how to kill Americans. His training included explosives and weapons instruction and using photographs of President Bush as targets. That's what court documents are indicating.

His father supposedly paid $100 a month to support his activities, his alleged activities in Pakistan.

How are those two connected to these two Muslim religious leaders?

FARROW: Well, I'm not familiar with how they're connected with the two religious leaders because I'm more -- I'm a lot more familiar with the two leaders.

COSTELLO: Well, let's just center on them, then.

What do you know about them?

FARROW: OK. Well, one, Muhammad Adil Khan, I met in, shortly after 9/11, the World Trade Center tragedy. And he kind of -- he came out and announced whole-heartedly how much he opposed any terrorism whatsoever and that what -- the 9/11 tragedy does not reflect what Islam is all about.

COSTELLO: And what about the other man?

FARROW: The other man I met a couple of years ago, I don't know as well. But he has been, you know, the spiritual leader in -- for the Islamic community in Lodi for at least, I would say, two years or so. And he has preached peace, as well.

COSTELLO: Now, the FBI is alleging that these two men, this father and son, met with these two religious leaders. We don't, of course, know what they talked about. But the FBI, of course, is curious.

What do you know about that?

FARROW: I don't -- I know as much as you do about that. I have not gotten any information from the FBI about what they've -- exactly what, you know, has transpired there.

COSTELLO: So we've heard a little bit from the community about how they feel about these allegations.

What more are you hearing in community reaction?

FARROW: Some of it is, you know, there are people on each side of the fence in Lodi. Some support -- are supporters of, especially Muhammad Adil Khan. But there's a certain group of people, in fact, the leadership of the local mosque, who opposes him.

COSTELLO: Well, I'm sure much more information will be coming throughout the day. Ross Farrow from the "Lodi News-Sentinel" joining DAYBREAK this morning.

And, also, our Chris Lawrence is just arriving at the scene.

He'll join us live with more details at the half hour, we promise.

And we want to remind you to stay tuned to CNN day and night for the most reliable news about your security.

In other "Stories Across America" this Wednesday, border agents say they followed proper procedures in letting this man cross the U.S.-Canadian border into Maine even though he was carrying a blood- stained chainsaw. The day after Gregory Despres crossed the border, two people who live next door to him in Canada were found brutally killed. Despres has been charged with two counts of murder and is awaiting extradition to Canada.

A gruesome discovery when this South African Airways jet landed at JFK in New York. Airport workers found a body part hanging from one of the wheel wells. Apparently someone had tried to stow away. One report says body parts from the plane were also found in a Long Island neighborhood.

In Los Angeles County, the end to a very long chase. A man suspected of attempted kidnapping refused to give up after his car was pinned against the wall of Interstate 10. Police used tear gas and a police dog to get him out. His alleged victim got away at the beginning of the incident.

And we could learn more today about the disappearance of the 18- year-old Alabama student in Aruba. Two men held in connection with Natalee Holloway's disappearance will appear in court today and prosecutors could lay out more of the case against them.

Karl Penhaul has more for you from Aruba.

(BEGIN VIDEO TAPE)

UNIDENTIFIED FEMALE: We've just sent people off to the left, so maybe if you guys go a little bit to the right.

MARIO BELVISO, ARUBA VACATIONER: Sure.

KARL PENHAUL, CNN CORRESPONDENT (voice-over): New Jersey plumber Mario Belviso and his wife Carla hadn't planned to spend their dream vacation quite like this. But when they heard Natalee Holloway's parents were desperate for volunteers to hunt for clues for their missing daughter, they didn't hesitate.

CARLA BELVISO, ARUBA VACATIONER: You don't want anyone to go through what the parents are going through, especially if you're a parent yourself. So you want to try to help out all you can.

PENHAUL: It's nearly midday and by now Mario could be sitting on a white sandy beach sipping his first pina colada. But he doesn't mind.

M. BELVISO: Give them one day, two days, whatever they need, no biggie. The island will always be here.

PENHAUL: Search leaders have told them to keep their eyes peeled for vital signs.

M. BELVISO: The lady just told us to walk around, see if -- looking for disturbed dirt, a shallow grave or something like that.

PENHAUL: In twin raids Sunday, police arrested two hotel security guards, a 28- and a 30-year-old, in connection with Natalee's disappearance. Their attorney, Chris Lejuez, says they've been formally accused of multiple crimes.

CHRIS LEJUEZ, ATTORNEY: They are mentioning murder or accomplice to committing murder, homicide, accomplice to committing homicide, and kidnapping with the consequence of death.

PENHAUL: But investigators have not offered any conclusive proof whether Natalee is dead or alive. Lejuez says his clients were not at work near the Holiday Inn where Natalee was staying on the night she disappeared. One was out partying with his wife.

Prosecutors have not publicly revealed what evidence led them to arrest these men, who are now being held in separate jail cells at opposite ends of Aruba.

LEJUEZ: Both of them are very concerned. They are nervous. They know that they are suspected of something very, very heavy, very serious. But they are confident, both of them, and have shown that confidence to me, that they very categorically deny being involved in this case.

PENHAUL: At a Tuesday afternoon news conference, prosecutors said the two suspects will be held for at least another week while they gather more evidence.

Back on Aruba's north shore, Mario, Carla and their buddy George Christopher, also a plumber from New Jersey, are drawing a blank. Just the usual flotsam and jetsam litters the craggy coastline. Nothing to report in the thorny scrub or between the cacti, either.

It's more than a week since she disappeared and the only sign they see of Natalee anywhere is this missing poster in an abandoned fisherman's retreat. There's now a $55,000 reward for anyone who finds her.

UNIDENTIFIED MALE: You know, God forbid it was my daughter, I'd want people out here helping me.

PENHAUL: Karl Penhaul, CNN, Aruba.

(END VIDEO TAPE)

COSTELLO: Still to come this hour, here's to you, Mrs. Robinson -- a look back at the life of Anne Bancroft at a quarter past.

And the world's largest auto maker announces cutbacks in personnel, plants and production. Carrie Lee on General Motors' woes about 23 minutes past.

And later, Howard Dean's mouth just keeps getting him into trouble. Well, this time it's his pen. We'll show you what's raising eyebrows in both parties.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 6:15 Eastern.

Here's what's all new this morning.

Federal agents have arrested two Islamic leaders in a terrorism investigation in northern California. They've also locked up a father and son who allegedly lied about the son's attendance at an al Qaeda training camp in Pakistan.

In money news, Southwest Airlines wants to be able to fly from Love Field in Dallas to most U.S. cities. But a 1979 law prevents that from happening. Southwest says long haul flights would save travelers nearly $700 million. Congress put restrictions on Love Field to help the Dallas/Fort Worth airport grow.

In culture, actress Michelle Rodriguez is "Getting 'Lost'," so to speak. She's joining the cast of the drama when it resumes its second season on ABC in the fall.

In sports, the Arizona Diamondbacks have picked Justin Upton, a high school shortstop from Chesapeake, Virginia. Upton batted .519 this season. Pro-baseball's draft should end today.

To the Forecast Center now and Chad.

MYERS: And good morning, Carol.

(WEATHER REPORT)

COSTELLO: The lights will be dimmed on Broadway tonight to mark the passing of Anne Bancroft. She's being remembered as a consummate actress by Mike Nichols, who directed her in the 1967 film, "The Graduate."

Aaron Brown has this look at her life and her life's work.

(BEGIN VIDEO TAPE)

(BEGIN VIDEOTAPE)

(BEGIN VIDEO CLIP FROM "THE GRADUATE," COURTESY MGM HOME ENTERTAINMENT)

DUSTIN HOFFMAN, ACTOR: Mrs. Robinson, you're trying to seduce me.

(END VIDEO CLIP)

AARON BROWN, CNN CORRESPONDENT (voice-over): Anne Bancroft was Mrs. Robinson, the elder woman to Dustin Hoffman's emerging young man in "The Graduate." The movie, directed by Mike Nichols, was a classic. The role, her most famous. But not the role she liked best.

"With all the good work I've done, some of it very good," she said, "all people want to talk about is Mrs. Robinson. Nobody talks about 'The Miracle Worker.'"

(BEGIN VIDEO CLIP FROM "THE MIRACLE WORKER")

ANNE BANCROFT, ACTOR: W-A-T-E-R, water.

(END VIDEO CLIP)

BROWN: She won a Tony on Broadway and an Oscar for the film. She was Anne Sullivan in the story of Helen Keller, "The Miracle Worker."

"More happens in her face in 10 seconds than happens in most women's faces in 10 years," said Arthur Penn, who directed her on Broadway.

Born in the Bronx to Italian immigrant parents, she dreamed of being an actress in a time when just getting by was hard enough. But her mother encouraged her, and off to Hollywood she went. Anna Maria Louisa Italiano became first Anne Marno, and then Anne Bancroft. "I thought," she said, "it sounded more dignified."

Her film debut came in 1952, "Don't Bother to Knock." A decade of supporting roles, then Broadway with the great Henry Fonda, "Two for the Seesaw," for which she won a Tony. She was a dedicated actress and made it sound deceptively easy.

BANCROFT: It's getting up early and it's putting on wigs and, you know, learning lines, and, you know, most of it is that. I mean, there's very few moments in the day when you're really expressing yourself.

BROWN: She married Mel Brooks in 1964. "I've never had so much pleasure being with another human being," she said after they first met. Their son, Maximillian, born eight years later. The two then co-starred in the farcical "To Be or Not To Be."

For a time, she turned down work in favor of family life. But the lure of the stage, the theater, the screen, pulled her back.

The range of her work, impressive. She was an aging ballerina in "The Turning Point," another Oscar nomination. Anne Bancroft could be equally convincing as Golda Meir or a mother superior in "Agnes of God." There were so many roles we would need most of the program just to list them all; rarely an easy character or easy role.

(BEGIN VIDEO CLIP FROM "KEEPING THE FAITH")

BANCROFT: All right now, over to you.

(END VIDEO CLIP)

BANCROFT: It's kind of like giving birth. Think of giving birth. I mean, it's very painful and it's hard, hard work. And yet, isn't it worth it?

BROWN: Which brings us back to Mrs. Robinson. She was warned not to take it -- it's all about sex with a younger man. But she saw her Mrs. Robinson as a character of unfulfilled dreams and played her to the hilt.

(BEGIN AUDIO CLIP)

SIMON & GARFUNKEL: And here's to you, Mrs. Robinson.

(END VIDEO CLIP)

BROWN: Anne Bancroft died of cancer. She was 73.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

COSTELLO: Time for a little "Business Buzz."

Bob Evans may start selling beer and wine. The restaurant chain says it needs to do something to stop slumping sales. The company sees beer and wine sales as a way to draw younger customers, but not too young.

Speaking of beer, the emperor is getting some new clothes. Well, the king, anyway. Budweiser brands are now going to be available in a new aluminum bottle. The company says the new look is perfect for today's contemporary adults.

We've been talking a lot this morning about General Motors' job cuts.

Carrie Lee joins us with more details on the company's plans and its many problems.

CARRIE LEE, CNN CORRESPONDENT: And a lot of workers are going to be laid off, or maybe attrition. We're talking about 25,000 job cuts now, Carol, at the big three auto maker.

The company's chief, Rick Waggoner, outlined the company's plans recently. He said they're going to cut 25,000 jobs as well as close some plants by the end of 2008. They're also going to cut production to five million vehicles by the end of the year compared to six million it produced in 2002. Now, the goal here, as always, is to save money. G.M. hopes the move will help it save $2.5 billion per year. It lost more than $1 billion in the first quarter of this year alone. The stock took a big hit when that announcement came out.

So what's behind the company's problems? Well, there are three major issues. Number one, they're losing market share in the United States, particularly to Japanese auto makers. Also, Waggoner says the company is selling fewer SUVs, which are high profit; and more cars, which are lower profit. And then finally, the company has huge labor costs. It's dealing with the Autoworkers Union. Basically, it forces them to pay union employees even if they're laid off or if the plant is closed. Also, there are huge health care and pension expenses.

Wall Street has approved of this move, though. Carol, yesterday the stock ended higher by about 1 percent.

COSTELLO: Oh, what about the futures this morning?

LEE: Futures looking up this morning after a mixed session. The Dow was higher by 100 points during the session yesterday. Ended up just 16 points. And it looks like we could see the gains continue into today's session.

COSTELLO: Oh, we hope so.

LEE: Yes.

COSTELLO: OK.

Let's talk a little bit more about G.M., because we want to open up a DAYBREAK "Data File" and take a closer look at G.M.'s bottom line.

Every time a car rolls off the assembly line, G.M. loses $1,100. The car maker pays its workers an average of $54 per hour. And when it comes to health costs, G.M. spends $5 billion a year on health insurance. That ends up adding $1,500 to the price of each and every car.

Still to come on DAYBREAK, North Korea and Japan take soccer match behind closed doors. We'll hear about what fans think.

Also ahead, x-rated Web sites get their own domain. Stay tuned. We'll explain.

(COMMERCIAL BREAK)

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

COSTELLO: And good morning, everyone.

New details this morning on terror suspects arrested in California. We'll have a live report for you straight ahead. But first, now in the news, we could learn more today about a missing 18-year-old Alabama student. Two security guards for a hotel in Aruba are set to appear in court today. Their attorney says prosecutors are looking at them as possible murder suspects in the disappearance of Natalee Holloway.

The U.S. Senate votes today on the nomination of California Supreme Court Justice Janice Rogers Brown to the federal appeals court for the District of Columbia. Brown was nominated to the post two years ago.

It's billed as the world's biggest permanent indoor sculpture and it opens to the public today at Spain's Guggenheim. It's called A Matter of Time. The steel work is nearly one-and-a-half football fields in length. It weighs 1,200 tons. American artist Richard Serra created the sculpture.

To the Forecast Center -- good morning, Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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