[Daryn Kagan, Cnn Anchor:] It is 11 a.m. in Washington, D.C., 8 a.m. in Redwood City, California. At CNN World Headquarters in Atlanta, good morning, once again. I'm Daryn Kagan. Up first this hour on CNN, a hostage crisis in Iraq could be nearing an end. And a Filipino truck driver held captive could soon be free. A diplomatic source says he will be released today. The Manila government has been negotiating for the release for Angelo de la Cruz. For the latest, let's go to Baghdad and Michael Holmes. Michael, hello.
[Michael Holmes, Cnn International Correspondent:] Hi to you, Daryn. Yes, we still wait as does, no doubt, the family of Angelo de la Cruz, the 46-year-old truck driver, father of eight. He was abducted. He's being held hostage. Takers have been demanding that all Filipino troops leave Iraq. What's been happening this day is, we've been told by diplomatic sources here in Baghdad that a deal had been done that he would be released today. Well, it's now just after 7 p.m. here in Baghdad, no word of any release. What we were told by the diplomatic source was that he had been told by intermediaries dealing with the hostages themselves that de la Cruz would be released at an undisclosed location. A lot of rumors going around about where that might be. But quite frankly, we don't know. And certainly he has not been released at this stage. Now this follows, of course, the kidnappers' demands that the troops leave by July 20th. They were due to leave anyway in August. Now what's happened is that it appears that Manila, the Philippine government, has acquiesced to a degree. And what we've been told by our sources is that the troops will be leaving as soon as possible. And by as soon as possible, the sources are telling us, that means before the August deadline the August scheduled depart date. So that's something that's not going to please either Baghdad or Washington, both of which are very much against negotiating with hostage takers. And it would appear in this case, that it would appear that there has been some concession made to the hostage takers. We heard earlier the Iraqi foreign minister. He was in Brussels. And he was basically saying, we don't even know if this was a criminal group. We don't know this group and to be negotiating with them is not good is not a good sign. It just encourages hostage taking. However, the Philippine government has a tough, tough boat to row, actually because there are hundreds, thousands, in fact, of Filipino workers all around the Middle East. All of them send money back to their families in the Philippines. It's actually an integral part of the Philippine economy. And to leave a father of eight who is over here making a living, leave him to hang out to dry for want of a better description would not go down well with the electorate back home. And so it appears that there has been negotiation going on but we still see no signs of de la Cruz Daryn?
[Kagan:] Michael Holmes in Baghdad. Michael, thank you for that live report. U.S. officials certainly have tried to discourage countries from giving in to the demands of hostage takers in Iraq. Elaine Quijano is at the White House following this morning's developments. Elaine, I would imagine the Bush administration not happy about this latest development.
[Elaine Quijano, Cnn White House Correspondent:] Well, at this point, Daryn, still seeking clarification. At least that is the latest word we have from a senior Bush administration official who indicates that the White House is very much aware of the reports. But at this point, the line is that they are still looking for some kind of clarification from the government of the Philippines. But what is interesting to note, in a statement from the senior administration official, I'll read it to you here. Some strong words about what you just mentioned saying "while this is a decision for the Philippine government, we believe such a decision would send the wrong signal to terrorists around the globe." Now that indicative of how much of a blow this would be to the Bush administration which, as we have said, has taken a hard line not negotiating with terrorists. But also a surprising blow to the administration as well. There you see President Bush has stood firm with his ally there, the president of the Philippines, Gloria Arroyo on many occasions, taking time to praise her efforts in fighting the war on terrorism. The president of the Philippines there having her own difficulties with terrorism in the southern part of that country. But this would be a blow symbolically, not necessarily in terms of manpower because we're just talking about 51 troops not a large contingent particularly, but symbolically, as the president of the United States hopes to keep that multinational force intact in Iraq as the roots of democracy, they hope, take hold. This is not the kind of situation they want to see. Certainly it sends a precedent, they feel, that is not good as these days move forward in Iraq Daryn?
[Kagan:] Elaine Quijano furthering our story for us at the White House. Thank you. Now we move on to the ongoing mystery surrounding the U.S. Marine who vanished in Iraq and then resurfaced in Lebanon. The U.S. says the are questioning of Marine Corporal Wassef Ali Hassoun is taking longer than they thought it would. Officials say they want a full picture of his ordeal. The Marine says he was abducted from a secure U.S. base in Iraq. But it's really not clear how he turned up in Lebanon three weeks later. He's currently at a U.S. base in Germany and he could return to the U.S. later this week. More terrorists are posting their sinister plotlines online. Experts say that suspicious chatter in chat rooms is growing. As terrorists use the World Wide Web to spread their talk about terrorism. Our Kelli Arena has that report.
[Kelli Arena, Cnn Justice Correspondent:] This Web site reads in part, "Oh, Allah destroy America and shake it." This one says, "The decisive battle is approaching." Such threats are not new to terror experts who scan hundreds of al Qaeda related Web sites daily, but recently some say there is more reason to worry. Experts say threats are coming with greater frequency and for more reliable sources.
[Evan Kohlmann, Global Terroralert.com:] A lot of the chatter that we're seeing is not coming from unidentified, unspecified sources on Internet chat boards. It's coming from the same sources that have predicted before terrorist acts that have actually occurred.
[Arena:] One such source warned of attacks in Spain three months before the bombings there in March and distributed video of the beheading of American Nick Berg. It's called Global Islamic Media.
[Kohlmann:] It's now saying that the death blows in the approaching battles are coming that the death blows are upon us. And that these death blows will not only be horrible, but that they are sure to happen.
[Arena:] Some of the potential targets mentioned include hospitals, parks, airports and houses of worship.
[Gabriel Weimann, U.s. Institute Of Peace:] You see many targets mentioned. And if you are involved in psychological warfare, you know that the more targets you mention, the more panic you cause and it will be harder to defend against attacks.
[Arena:] What's more, Weimann says even if the postings are pure propaganda, they help terrorists accomplish their goal.
[Weimann:] I think al Qaeda knows that one of the most important values of terrorism is psychological impact. That is, you can widen the scope of the victims by enlarging it to the people who are affected psychologically.
[Arena:] Officials are taking the web chatter very seriously and have reached out to a variety of experts for assistance. Many are convinced al Qaeda is prepared to strike and are intent on not missing any clues. Kelli Arena, CNN, Washington.
[Kagan:] The war against terror has often been paired with the war in Iraq. But a new report is expected to blast faulty British intelligence used to justify the Iraqi war. It's called the Butler Report. It is focusing on sketchy intelligence about Iraq's weapons. It will be released to the public tomorrow. But Prime Minister Tony Blair has his copy today. Sources say it will be a critique of Blair's decision to support the invasion. Earlier, the prime minister talked about post-war Iraq.
[Tony Blair, British Prime Minister:] With the history of Saddam and what he did, not just to his own country, but to the wider world, we are better, safer, more secure without him in office. And I think what is interesting with the transfer of sovereignty a couple of weeks ago is that you can feel the situation changing now. It's far too early to be anything other than immensely cautious. But I think you can get a sense from Iraq that the Iraqi people know very well now the prospect they have for the future these terrorists and former Saddam people are actually their enemy, not people fighting a war of liberation for them. And you've only got to imagine what the Middle East would be like if Iraq reaches the position they want to see and we want to see.
[Kagan:] Mr. Blair was asked if he thought had he been given worthless intelligence and he said, "I'm afraid I don't accept that at all." Well back here in the U.S., political question: Did John Kerry's pick for number two help his campaign? And will a loss of confidence in George W. Bush hurt his campaign? New poll results are in. We'll have them for you coming up. Also, the search for evidence and remains take center stage in the Scott Peterson murder trial. And the recording industry is taking drastic steps to stop Internet file sharing, but has it worked? Well, let's put it this way, they might want to cover up their ears. That story when CNN LIVE TODAY returns.