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Newsroom/World View

NEWSROOM for July 12, 2000

Aired July 12, 2000 - 4:30 a.m. ET

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

ANNOUNCER: Seen in classrooms the world over, this is CNN NEWSROOM.

SHELLEY WALCOTT, CO-HOST: It's Wednesday here on NEWSROOM. Thanks for joining us. I'm Shelley Walcott.

TOM HAYNES, CO-HOST: And I'm Tom Haynes. We have a lot lined up for today. We begin right here in the United States.

WALCOTT: In today's top story, Middle Eastern leaders do a dance for diplomacy.

(BEGIN VIDEO CLIP)

WILLIAM J. CLINTON, PRESIDENT OF THE UNITED STATES: The road to peace, as always, is a two-way street. Both leaders feel the weight of history.

(END VIDEO CLIP)

RUDI BAKHTIAR, CO-HOST: Have you chosen a vacation destination? I'm Rudi Bakhtiar.

ANDY JORDAN, CO-HOST: I'm Andy Jordan. We'll tell you about our trip to Europe.

BAKHTIAR: And we'll give you some shopping tips. Is plastic fantastic?

JORDAN: Credit dos and don'ts coming up later in "Business Desk."

HAYNES: We're in Europe for "Worldview," and a little bit of ghost-hunting in London.

(BEGIN VIDEO CLIP)

ROY PORTER, COSTUME INTERPRETER: There's a story that Katherine, having been alerted to her doom, as it were, ran along this gallery trying to find the king.

(END VIDEO CLIP)

WALCOTT: Then we rev it up in "Chronicle" when we hit the fast track to find out how you can take driving to a whole new level.

(BEGIN VIDEO CLIP)

SKIP BARBER, CEO, SKIP BARBER RACING SCHOOL: When you're driving a racing car, you're problem solving. I mean, you might be getting a thousand inputs a minute or a second and you're constantly dealing with all those issues.

(END VIDEO CLIP)

HAYNES: Today we're watching the all-important Middle East summit under way at Camp David, Maryland. U.S. President Bill Clinton brought the leaders of Israel and the Palestinians together to take on some of the toughest issues facing Middle East peace. Mr. Clinton is hoping Ehud Barak and Yasser Arafat will complete a peace agreement.

Both men come to the table with strong credentials. Yasser Arafat was named chairman of the Palestine Liberation Organization in 1969. After he addressed the United Nations General Assembly in 1974, the PLO was officially recognized by the U.N. as the representative of Palestinian Arabs. Two decades later, in 1994, Arafat and Israeli leaders Yitzhak Rabin and Shimon Peres shared the Nobel peace prize.

Ehud Barak earned his masters degree in 1978 from Stanford University in the United States. After years of service in the Israeli Army, he was named Army chief of staff in 1991. And eight years later, he was elected Israeli prime minister.

Now, Mr. Barak and Chairman Arafat come together at Camp David in what many call a last ditch effort at peace.

(BEGIN VIDEOTAPE)

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): Plenty of smiles, but few words on the summit's opening day.

CLINTON: We pledged to each other we would answer no questions.

KING: A brief walk in the woods appeared to put the leaders in a playful mood. Israeli Prime Minister Ehud Barak and Palestinian leader Yasser Arafat wrestled over who would enter the talks first. And the president appeared to broker his first summit compromise. Day one was designed to test the mood, to gauge whether the Israeli and Palestinian delegations are ready to seize what Mr. Clinton calls a moment of promise.

CLINTON: Both sides must find a way to resolve competing claims to give their children the gift of peace.

KING: Senior U.S. officials tell CNN the president is prepared to force discussion of several possible compromises in the days ahead. One would leave most of Jerusalem in Israeli hands, but carve out a slice of Arab-dominated East Jerusalem for the Palestinians. Another would cede most of the West Bank to the Palestinians, but with the lines drawn carefully, so the relatively small portion retained by Israel would include most of the Jewish settlements outside of Israel's 1967 borders.

CLINTON: There can be no success without principled compromise. The road to peace, as always, is a two-way street.

KING: The Israeli leader arrived eager for direct talks with Arafat. The Palestinians appear in less of a hurry, leaving Mr. Clinton in the familiar role of middleman.

WAYNE OWENS, CENTER FOR MIDDLE EAST PEACE: Two points are absolutely essential here. One is that each leader be strong for his constituents and have his say and take the strong positions; and two, that the compromises be Clinton's compromises.

KING: There is no official deadline, but the president has blocked out a week for a summit that will put his renowned powers of persuasion to the test.

(on camera): The symbolism of Camp David was evident even in the room assignments. Prime Minister Barak was assigned the cabin used by Egyptian President Anwar Sadat back at the 1978 Camp David summit; Mr. Arafat given the cabin used by then Israeli President Menachem Begin. It's all part of a carefully calculated White House strategy designed to put the leaders in a mood to make peace.

John King, CNN, the White House.

(END VIDEOTAPE)

WALCOTT: This week, NEWSROOM is looking at how the summit is playing among the people in the Middle East. Today, we're looking at the Palestinian perspective. Despite the high-profile maneuvering, pessimism still abounds at the grass roots level. Many Palestinians are voicing serious doubts about whether this summit might yield any compromises.

With more, here's Ben Wedeman.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN CORRESPONDENT (voice-over): In Ramallah's bustling market, life goes on. The wheeling and dealing at Camp David seem a world away, as far away to many here as a final settlement to this century-old conflict. "They say peace, peace, but where is peace," asks this vendor. "How can there be peace if they don't give us any land? We have no borders, no state."

The wave of optimism that swept the West Bank seven years ago when the Oslo peace accords were signed is gone, replaced by frustration and impatience.

UNIDENTIFIED MALE: Why coming to the table in Washington? I mean, shake hands and sitting at a table and signing agreements. How many pieces of paper they sign? What they sign for?

WEDEMAN: And among some, there is nostalgia for a time when things were tougher, but simpler. UNIDENTIFIED MALE: During the Intifada, we used to go and our head is up. And this is the, like, the Palestinian normal way to live -- like, our head is always up. But after the peace process and after all of these situations, we like are walking like, sorry to say it, as donkeys.

WEDEMAN: Many Palestinians have long felt that history dealt them a bad hand. And come what may out of Camp David, they don't expect a radical reshuffling of the cards.

"I know that today and tomorrow and for a long time to come," says this woman, "we will always be oppressed, we will always be the losers."

School children were paraded through the streets of Ramallah, voicing support for their leader; a leader who now finds that his people's demands for progress could outstrip his abilities at the negotiating table.

(on camera): The people in this city haven't given up on peace, but their faith in the peace process appears to be dwindling.

Ben Wedeman, CNN, Ramallah, on the West Bank.

(END VIDEOTAPE)

JORDAN: We take up a sign of the times in "Headlines." Should music be free? Internet music downloading companies were on Capitol Hill in Washington, D.C. yesterday defending the latest Internet technology. They, along with other Internet innovators, say downloading free tunes encourages interest in music and is the ultimate example of Internet opportunity. Less well-known artists often appreciate the publicity. Many established musicians, though, call it an infringement on artistic freedom. And music industry executives say it cuts into their profits and want the practice to end. All of them are sounding off on the issue.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): Metallica does nothing quietly, so the heavy metal group was happy to make noise before Congress about its songs being swapped for free on the Internet site Napster.

LARS ULRICH, METALLICA: Napster hijacked our music without asking. They never sought our permission. Our catalogue of music simply became available for free downloads on the Napster system.

KOCH: Other musicians are in harmony with the new technology. One says concert attendance is up 15 percent.

ROGER MCGUINN, FORMER MEMBER, THE BYRDS: I get e-mail from young people under 20 all the time who have discovered the Byrds basically from listening to Byrds tracks on the Internet.

KOCH: Since last fall, music fans have been using Web sites like Napster and Gnutella to scan each other's hard drives and select and download whatever they choose. Nearly 20 million participate in what Napster calls "sharing."

HANK BARRY, CEO, NAPSTER: They're doing that for sampling purposes and then they're going out and buying CDs. CD sales are up 8 percent over a billion dollars, Senator. And the reason they are is that more people are interested in music. So we're generating interest in music.

KOCH: That sounds a sour note with a coalition of recording artists that, Tuesday, launched a national campaign against what they call Internet music "piracy." Emusic.com, the largest seller of downloadable music online, has seen investment dollars dry up.

GENE HOFFMAN, CEO, EMUSIC.COM: They're afraid Napster will invalidate the concept of paying for music, period.

KOCH (on camera): While lawmakers are concerned about protecting the music industry, they're also reluctant to pass new laws that could burden consumers and stifle promising technology.

(END VIDEO CLIP)

JORDAN: Well, it's that time of year. Many people are heading on vacations for their summer. Rudi and I just got back from Europe, from Paris and England.

BAKHTIAR: It was a blast.

JORDAN: Yes, we had a great time.

BAKHTIAR: Yes, here's a picture of us at the Louvre.

JORDAN: I thought it was the Louvre.

BAKHTIAR: The Louvre.

JORDAN: The Louvre. I'll get it.

BAKHTIAR: Ten days and still can't say it.

JORDAN: Here we are at Notre Dame. That's a big church.

BAKHTIAR: A big church.

JORDAN: Way big.

BAKHTIAR: That's an understatement of the year.

JORDAN: And here we are at the opera. We had a great time.

Well, many Americans just like us are heading overseas for their summer vacations. And for many travelers, using credit cards has been the most convenient way to pay for purchases. We certainly did. But paying by plastic may cost you more in hidden fees than you realize.

Casey Wian explains.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Frequent travelers know using plastic abroad can save you money, thanks to the favorable exchange rates on credit cards. But those savings may be shrinking because of higher foreign exchange transaction fees.

ROBERT B. MCKINLEY, CARDWEB.COM: It used to be that you would pay 1 percent over the wholesale exchange rate, but what's happening now is some of the card issuers are adding 2 percent additionally on for themselves.

WIAN: Credit card giants Citibank and Bank One/First USA, for instance, are now levying a 3 percent fee, whereas MBNA and Bank of America still maintain their 1 percent rate.

So say you spent $2,000 on a trip. You can pay up to $60 in fees. Compare that to the $20 fee you would pay at a 1 percent rate.

But despite the rising fees, consumer advocates say credit cards are still a better bargain than using traveler's checks. Not only can you dispute purchases on your card, but the fees are less severe.

LINDA SHERRY, CONSUMER ACTION: If, in fact, you go to a money changer or currency exchange place, they'll typically get you anywhere up to 10 percent. And if you buy money in advance in America before you go traveling, they can really hit you hard. You can pay up to 20 percent sometimes.

WIAN: Watchdogs also suggest travelers use their ATM cards for large withdrawals. That's because banks typically charge one flat fee, ranging from $1 to $3 per withdrawal. And for the infrequent traveler, make sure you call your credit card company before you venture abroad.

MCKINLEY: Many times today, card issuers will shut down a credit card after one or two transactions until they can confirm that it is actually you using the card abroad.

WIAN: Casey Wian, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

HAYNES: We will check out the various facets of the business world in "Worldview." Meet some intrepid investigators hot on the trail of a mystery. We head to England to pit science against the supernatural. Come along for a bit of global ghost hunting. We'll also journey to the United States to explore threats on the Internet. Is the World Wide Web the new frontier for terrorists? And find out what global strides women are making.

WALCOTT: Women from around the world gathered in New York City for a symposium on human rights last month. Their goal: to end abuse against women. The meeting was sponsored by Rutgers University's Center for Global Women's Leadership. The event was held at the same time world leaders gathered for a special session of the U.N. General Assembly, also to discuss women's rights. And the progress made since a 1995 conference in Beijing laid out a platform on female equality.

Deborah Feyerick and Riz Khan have our report.

(BEGIN VIDEOTAPE)

RIZ KHAN, CNN CORRESPONDENT (voice-over): It's being called "Beijing Plus Five" since it's a five-year follow-up to the 1995 women's conference in the Chinese capital.

But women's rights activists are worried that this conference might actually work against their cause. The United Nations high commissioner for human rights, Mary Robinson, expressed concern that the review process now under way may undo some of the gains won at Beijing. She also pointed out that it takes only a few of the 180- plus nations attending to block any real progress.

The consequences of social and economic discrimination against women were addressed by a key speaker at the conference, U.S. first lady Hillary Rodham Clinton.

HILLARY RODHAM CLINTON, U.S. FIRST LADY: We have come to the U.N. not only because we believe that all women and girls should be treated with dignity and respect, but also because we know that no country today will ever get ahead if half of its citizens are left behind.

KHAN: The figures since 1995 are improving, but still not too encouraging. The U.N. Statistics Division revealed fewer women die in childbirth, but pregnancy-related deaths vary hugely from place to place: one in 16 in Africa; one in 65 in Asia; and in Europe, one in 1,400.

Though the gap's closing in terms of education, in 22 African and nine Asian countries, enrollment for girls in primary and secondary education is less than 80 percent of the enrollment for boys. Nearly two-thirds of illiterate people in the world are women, especially older ones.

On this issue, the U.N. secretary-general, Kofi Annan, had a strong message.

KOFI ANNAN, U.N. SECRETARY-GENERAL: By educating girls, you also ensure that there's better nutrition, health practices and others within the family. And so there is a multiplier effect which one cannot ignore.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Five years after the Beijing conference laid out a plan on female equality, human rights leaders say a handful of U.N. members, including Pakistan, Afghanistan and the Vatican, have failed to put the international standards into action.

PIERRE SANE, DIR. GENERAL, AMNESTY INTERNATIONAL: They did not change the discriminatory practices that exist. They do not bring an end to violence against women. They do not hold state agents accountable.

FEYERICK: Also of great concern, say human rights observers, the opposing countries are not only trying to block progress, they're trying to reverse it as well.

MARY ROBINSON, U.N. HIGH COMMISSION FOR HUMAN RIGHTS: The few that don't want progress are very effective, and that's a problem.

FEYERICK: A problem because the gains are still fragile.

(on camera): U.N. officials say progress has been made in areas like education and health, but the biggest achievement, many of the leaders here feel, has been a strengthening of the women's movement and a greater sense of female empowerment.

SUNILA ABEYSEKERA, EXECUTIVE DIR., INFORM: Women themselves have really, through this process of empowerment, taken their future and their fate into their own hands.

FEYERICK (voice-over): A future they hope to shape through symposiums like this that aim to influence global opinion.

Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

JORDAN: Terrorism is a growing problem around the world. In response to bombings of U.S. embassies in Kenya and Tanzania, the U.S. Congress appointed a national commission on terrorism. That panel says the U.S. is not doing enough to prevent terrorist attacks. While such attacks might conjure up visions of violence, experts say the terrorist attacks of the future will increasingly focus on the Internet.

Pierre Thomas has more on such electronic assaults.

(BEGIN VIDEOTAPE)

PIERRE THOMAS, CNN JUSTICE CORRESPONDENT (voice-over): 1997, Worcester, Massachusetts, a teenager uses his computer to knock out communications at this air traffic control tower for six hours. March 1999, a programmer unleashes the Melissa virus, disabling thousands of computers around the U.S. And the Pentagon is the target of 80 to 100 illegal hacking attempts each day.

RICHARD CLARK, NATIONAL SECURITY COUNCIL: We've become dependent on computer networks. They run our electric power grid, our telecommunications network, they run our railroads, our banking system, and all of them are vulnerable at some level, to some degree, of information warfare.

THOMAS: The Justice Department's Michael Vatis heads the U.S. government's efforts to protects its infrastructure.

MICHAEL VATIS, DIR., NATIONAL INFRASTRUCTURE PROTECTION CENTER, FBI: There's really a broad spectrum of people, groups and countries that engage in cyberattacks, as a general matter, for different purposes.

THOMAS: The FBI computer crime case load has doubled each of the last two years. In October, the FBI reported 800 pending cases. And the future may bring even more ominous cyberthreats.

SEN. JON KYL (R), ARIZONA: According to the National Security Administration, there are over a hundred countries that are working on techniques to penetrate our information infrastructure.

THOMAS: The Clinton administration's point man on counterterrorism confirms planning for electronic assaults is already under way.

CLARK: There are governments who are building units, military units, intelligence units, to engage in information warfare.

THOMAS (on camera): A major advantage, cybercrime allows criminals to use computer technology to inflict damage while simultaneously reducing the risk of retaliation.

THOMAS (voice-over): Nation's are developing computer anti- hacking teams to block and investigate crimes in cyberspace. But officials say, as technology rapidly advances, preventing cybercrime and catching cybercriminals will only become tougher.

Pierre Thomas, CNN, Washington.

(END VIDEOTAPE)

BAKHTIAR: Tomorrow, we'll look at some new technology designed to upgrade security in the workplace and elsewhere.

(BEGIN VIDEO CLIP)

SHARON COLLINS, CNN CORRESPONDENT: Throw away your pins and passwords, we're entering the world of James Bond.

PIERCE BROSNAN, ACTOR: Bond, James bond.

COLLINS: What you used to only see in the movies could soon become a big part of your life. It's called biometrics: identification by body part.

(END VIDEO CLIP)

BAKHTIAR: We'll have that story tomorrow.

HAYNES: Henry VIII reign as king of England was so profound, it inspired a play by William Shakespeare called "Henry VIII." While Shakespeare wrote many plays on English history, it's been written that Henry VIII was the true embodiment of British royalty. He's said to have improved England's government, strengthened its Navy, and implemented religious reform, among other things. History also chronicles the fact that Henry VIII was married six times. Two of his wives were executed.

Today, the search is on for the ghost of one of those executed wives, Katherine Howard. And the team that's out to find her? No, not the Ghostbusters, just some eager spirit seekers in Great Britain.

Alex Kuli (ph) reports.

(BEGIN VIDEOTAPE)

ALEX KULI, CNN CORRESPONDENT (voice-over): It's the tale of the king, the ghost and the wise man. Doctor Richard Wiseman, that is. He's a student of the supernatural and he's leading a search for spirits in London's Hampton Court Palace.

RICHARD WISEMAN, UNIVERSITY OF HERTFORDSHIRE: Well, we're here at Hampton Court because it has a considerable reputation for being haunted. It's a place where people come, they walk around particular locations and experience all sorts of unusual phenomena. And we're trying to understand why that's the case.

KULI: According to legend, the palace is haunted by the ghost of Katherine Howard, the fifth wife of King Henry VIII. Katherine Howard was beheaded in 1542 because the king believed she had committed adultery with a courtier. She was imprisoned at Hampton Court before her execution, and visitors say they've seen her anguished soul roaming the halls.

PORTER: There's a story that Katherine, having been alerted to her doom, as it were, ran along this gallery trying to find the king, trying to get into the Holy Day closet where the king was supposedly listening to the mass. But she didn't get into there, so she was taken back by the guards.

KULI: There's no historical evidence to support the story, so Wiseman and his intrepid team of ghost hunters are seeking scientific proof. Their tools include light sensors, thermometers and a device known as a thermal imaging camera. It detects cold spots -- a ghostly footprint, if you will.

WISEMAN: We will try to find out more about the unusual experiences people have in the haunted gallery. We'll find out what sorts of people have them.

KULI: Wiseman is also asking visitors to record any odd sensations they may feel.

UNIDENTIFIED FEMALE: There were a couple of places that I thought there could be ghosts. I felt the temperature change so I wrote it down.

UNIDENTIFIED FEMALE: And I think if people had gone in smaller groups, perhaps to be able to wander around freely without the movement of other people, you might have probably had a better idea if there was some presence in the room, but I didn't feel anything today.

KULI: Science or psychobabble? It's a question worth pondering. But so far, the spirits are silent.

Alex Kuli, CNN.

(END VIDEOTAPE)

ANNOUNCER: You're watching CNN NEWSROOM, seen in schools around the world, because learning never stops, and neither does the news.

WALCOTT: Ever heard the phrase "pursue your passion and the money will follow"? Well, what that means is if you pick a career based on your interests, you'll probably be successful in that field. So imagine this: You're in a career you love, you're doing well, and then you decide, hey, I need a change, but nothing too drastic. So you decide to teach others what you know about what you've done.

Sound too good to be true? Well, meet Skip Barber.

Tony Guida makes the introduction.

(BEGIN VIDEOTAPE)

TONY GUIDA, CNN CORRESPONDENT (voice-over): Among the millions of sports fans who consider Formula One auto racing the ultimate in excitement, there have always been those who are not content just to cheer from the stands or watch racing events on television. For the past 25 years, those who want to experience the thrills of open-wheel auto racing firsthand have been able to attend the Skip Barber Racing School.

BARBER: You know, there's a lot when you first get in the car.

GUIDA: As a professional racing driver himself, Skip Barber shared Grand Prix tracks around the world with legends like Mario Andredy and Jackie Stuart during the peak of his competitive career in the early '70s. He knows what it's like to be behind the wheel of a finely tuned racing machine.

BARBER: I can`t imagine anything more satisfying then those infrequent times you get it really right. It's nonstop process from beginning to end of the race, and you`ll make -- I mean, the greatest driver in the world will make 50 mistakes in that time and do part of it in a way that's OK and a part of it in a way that's just tremendously satisfying. You hit the corner just perfect, it feels so good.

GUIDA: Auto racing fans may be drawn to the school as a way to live out their fantasies, but Skip Barber had no grand vision when he first opened the school in 1975. He was simply looking for a way to pass the time when he wasn`t racing.

BARBER: And I think I'm not unusual. I so backed into a business through what was really my passion, and I did it, really, thinking it was something neat that I can do while I was still racing. GUIDA: The process of running a racing school quickly proved to be extremely complex. Nevertheless, Barber did find that some of the same skills he used on the track also served him well behind the wheel of his new business.

BARBER: When you're driving a racing car, you're problem solving. I mean, you might be getting a thousand inputs a minute or a second and you're constantly dealing with all those issues. And of course I guess that's what any businesses is about.

GUIDA: Since opening that first racing school in northern Connecticut, Skip Barber has established more then 20 additional programs throughout the United States. Annual revenues now total more then $35 million. For nearly $500, a student can spend the day at one of Skip Barber`s schools, learning from qualified instructors and than testing what has been learned behind the wheel of an authentic Formula One car.

According to Skip Barber, those who have only watched auto racing are in for a number of surprises when they get behind the wheel. After completing a number of classes, students can participate in a wide variety of racing events sponsored by the school. Equally matched cars are provided for a real test of the driver's skill.

BARBER: Everything we do is all about the person`s ability to drive. In most kind of car racing, the guy with the best car should win and often does. Our cars are as equal as we can make them, so it's all about talent.

GUIDA: Increasingly, the school has played host to a wide range of corporate groups, helping to develop skills that are not only useful on the race track, but also in a business environment.

TARA WIKTOR, DIR., ADVERTISING & MARKETING, MERCHANT'S TIRE & AUTO: You learn a lot on how the car handles and the teamwork. It's a lot of fun and a good bonding experience for us.

GUIDA: Twenty-five years after calling an end to his own competitive career, Skip Barber says he has found great pleasure in sharing his love of auto racing with thousands of students.

(on camera): It sound like your life today is as complex and full of passion and interesting, or maybe even more so, than it was when you were behind the wheel.

BARBER: Certainly, you know, ironically, more satisfying. I didn`t think anything could ever replace racing, but I think we have a terrific little company. And to build that to see people do well is just wonderfully satisfying.

(END VIDEOTAPE)

WALCOTT: And that brings our show to its finish line.

HAYNES: It has, but why don't you come on back tomorrow. Take care. WALCOTT: Bye-bye.

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

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