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Newsroom/World View

NEWSROOM for July 26, 2000

Aired July 26, 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.

RUDI BAKHTIAR, CO-HOST: It's Wednesday here on NEWSROOM. Welcome. I'm Rudi Bakhtiar.

ANDY JORDAN, CO-HOST: I'm Andy Jordan. We have a lot of the world to cover today. Let's get started.

BAKHTIAR: A tragedy in the air near Paris tops today's news.

(BEGIN VIDEO CLIP)

SID HARE, PILOT/WITNESS: It was a sickening sight, and when it hit, just a huge fireball.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

JAKE ROSENBERG, YAHOO! INTERN: They give me a project that I can work on it, and I feel like a real developer.

(END VIDEO CLIP)

JORDAN: "Business Desk" checks in on the dot.com interns of Silicon Valley.

BAKHTIAR: Next stop Kenya, where recent power cuts have some citizens crying out.

JORDAN: "Chronicle" gives us a lesson in "Democracy in America" as Republican presidential candidate George W. Bush picks a running mate.

(BEGIN VIDEO CLIP)

RICHARD CHENEY (R), VICE PRESIDENTIAL CANDIDATE: Governor Bush is seeking not only to win an election, but also to lead our nation.

(END VIDEO CLIP)

BAKHTIAR: Today we report on a first-of-its-kind tragedy. A supersonic Air France Concorde jet crashed just hours after taking off near Paris. At least 113 people died both on board and on the ground after the jet slammed into a hotel complex. What makes this accident different from others? No Concorde had ever crashed in the plane's 30-year history. Until yesterday, there were 14 such jets operating.

Most of those on board the plane which crashed were German tourists heading for New York City where they were to board a cruise ship. The plane was just minutes into its 3 1/2-hour flight at an altitude of only several hundred feet when it went down, just a short distance from Charles de Gaulle Airport north of Paris.

Peter Humi is there and has this report.

(BEGIN VIDEOTAPE)

PETER HUMI, CNN CORRESPONDENT (voice-over): The Concorde had taken off from Paris' Charles de Gaulle Airport. Witnesses said the supersonic jet seemed to have trouble maintaining altitude before slamming into a hotel in a huge ball of flame.

UNIDENTIFIED MALE (through translator): The plane was on fire. There was a lot of smoke. Practically all of the undercarriage was on fire.

HUMI: There were no survivors on board the aircraft. The hotel building was destroyed. Witnesses spoke of seeing a long trail of flame from one of the jet's engines even before the plane had left the runway.

Among the witnesses to the crash, a pilot for Federal Express.

HARE: The nose pitched straight up in the air and the airplane just started rolling over and backsliding down toward the ground. At that point where the crash site was, it was probably two miles from me and I couldn't see the hotel it's reportedly crashed into. But it was a sickening sight.

HUMI: A spokesman for Air France said the plane had been chartered to a German luxury cruise line for the 3 1/2-hour flight to New York. The passengers were due to begin a two-week holiday aboard the MS Deutchland, cruising down the Americas as far as Ecuador.

Hundreds of firemen, police and medics from Charles de Gaulle Airport reached the crash site within minutes, and a makeshift field hospital was set up. The bodies of some of the passengers were placed in a temporary morgue in nearby buildings, including an adjacent hotel building which narrowly escaped being hit by the crashing plane.

Air France has now grounded its remaining five British-French- built Concordes pending the results of a full crash investigation. The airline said the crashed plane had just been closely inspected four days ago. It had received a complete overhaul last September.

Peter Humi, CNN, Paris.

(END VIDEOTAPE) BAKHTIAR: So what is a Concorde exactly? The technological marvel was designed to fly above the jet stream at 13,050 miles or just over 2,100 kilometers per hour. Tickets can cost more than $9,000 and the Concorde cuts a transatlantic flight time almost in half. Only British Airways and Air France operate the plane. And for some who've flown it, the Concorde is the closest they'll ever get to space.

Gary Tuchman looks at the Concorde's past and future.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): It is majestic and fast. The supersonic Concorde flies twice the speed of sound at an altitude of about 55,000 feet. On a clear day, a passenger can see the curvature of the Earth.

At one time, supersonic transport was thought to be the wave of the future. No longer.

MICHAEL GOLDFARB, FORMER CHIEF OF STAFF, FAA: This plane is approaching its life limits. There hasn't been quite the market, as you know, for the supersonic that they originally envisioned. So it's questionable about the future life of the Concorde, whether they'll reinvest in it and keep it flying.

TUCHMAN: The first Concorde test flight took place in France in March 1969 amid hopes the supersonic revolution was under way. Its first official passenger flight was in January 1976, an Air France flight from Paris to Dakar to Rio de Janeiro. At one time, 16 airlines expressed interest in ordering Concordes, but only two airlines did: Air France and British Airways. Fourteen Concordes were built. This crash means 13 are left.

GOLDFARB: Concorde is the icon of modern safe air travel. It's an amazing aircraft. Air France is a very good aviation company. The French authorities are very good in their oversight of their industry.

Concorde is a world unto its own, and the suppliers are great. And parts aren't so much a problem.

TUCHMAN: The only regularly scheduled service by both Concorde- equipped airlines is between Paris and New York, and London and New York. At one time, there was also regular service in the U.S. to Washington and Miami.

This past fall, the Boeing company withdrew from a research group studying a new supersonic jet because of the cost.

Concordes have had emergency landings before. And just this week, British Airways grounded a Concorde after cracks were detected in the wing surfaces.

CAPTAIN BRIAN WARPOLE, FMR. CONCORDE PILOT, BRITISH AIRWAYS: Concorde has a wonderful, wonderful safety record, and it's been scrutinized by all the certifying authorities who have looked at Concorde from every angle and every aspect. And they have found it totally safe both in design and manufacture.

GOLDFARB: Aircraft can fly 30, 40, 50 years if they're properly maintained. And maintenance is really the key to make sure that those cracks or those small six millimeter cracks they found on the British airplanes are in fact fixed.

TUCHMAN: The fact is, there has never been a fatality on a supersonic Concorde -- until now.

Gary Tuchman, CNN, Atlanta.

(END VIDEOTAPE)

JORDAN: In today's headlines, after 15 days of negotiations, the Camp David summit ended without an agreement between Israelis and Palestinians, the main sticking point: Jerusalem. Yasser Arafat, head of the Palestinian Authority, rejected a U.S proposal that included Palestinian sovereignty over parts of the Holy City. Despite the disappointing outcome, U.S. President Bill Clinton said significant progress was made during the talks, opening the way toward a future peace agreement.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): Even before the official motorcades began rolling out of Camp David, the finger-pointing had begun. Palestinian leader Yasser Arafat, early Tuesday morning in a note to President Clinton, saying Israeli Prime Minister Ehud Barak's position on Jerusalem made further negotiations pointless.

HASSAN ABDEL RAHMAN, PALESTINIAN REPRESENTATIVE FOR U.S.: Mr. Barak wanted to have Israeli-Jewish sovereignty over Haram al-Sharif and over other places in Jerusalem, which is unacceptable -- neither to the Palestinians nor to the Arabs.

KOPPEL: But Prime Minister Barak said Israel had already made generous concessions regarding Palestinian claims to East Jerusalem, while it was Yasser Arafat who refused to compromise.

EHUD BARAK, ISRAELI PRIME MINISTER: I emphasize that it takes two to tango. We cannot impose it upon them. We are ready. And if a partner will be, too, there will be peace.

KOPPEL: In a statement released when the summit ended, all three parties noted the negotiations had been "unprecedented in both scope and detail," and pledged to "continue their efforts to conclude an agreement" on all the core issues as soon as possible.

SAEB EREKAT, CHIEF PALESTINIAN NEGOTIATOR: The prospect for an agreement on all permanent status issues after the Camp David summit are stronger than any time before in the last almost nine years of negotiations.

KOPPEL: But a senior U.S. official indicated the U.S. would not be willing to host another peace summit unless there was a change in the as yet unwavering Palestinian position on Jerusalem.

(END VIDEOTAPE)

JORDAN: Well, no doubt many of you are struggling over the tortuous process of picking a career. Well, before you decide, here's some food for thought. Ever since the Internet burst onto the scene in the mid '90s, there seems to be a need for computer programmers and analysts. In fact, employment in the computer industry is projected to grow 117 percent between 1998 and 2008, making it the fastest growing industry.

And what better way to see if the computer business is for you than to get some hands-on experience in the field, especially if it comes with some very enticing perks.

Rusty Dornin reports.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Robert Spanos is working at IBM this summer on future applications for the Linux computer operating system. He's 16.

ROBERT SPANOS, IBM INTERN: I am a fanatic about computers.

DORNIN: Spanos and other high school and college interns often make more than $15 an hour at high-tech firms with benefits and even, in some cases, stock options. A shortage of technological talent has companies vying for potential employees, some as young as 14.

ZOE HARTE, YAHOO!: We wouldn't hire you as an intern if we wouldn't consider you as full-time employee, and they're told that up front.

DORNIN: Jake Rosenberg has been working four summers at Yahoo! since he was in high school.

ROSENBERG: They give me a project, and I can work on it, and then I feel like a real developer.

DORNIN: Hip is what's happening in the dot.com world, so companies like Big Blue try harder.

JANE HARPER, IBM: These are the students that would never have thought about coming to IBM, and that's who we were looking for. We were looking for those students that just were a notch above the rest and were thinking about -- they were going to a cool -- quote, "cool" company, a start-up company, and we had to attract them with something special.

DORNIN: Something special is Extreme Blue, the research center where the first hard disk was developed in 1954. Roy Paterson has been working on a pager that lets you know when someone you know is near.

ROY PATERSON, IBM PATERSON: To figure out what sort of new-age services we can provide for, say, cell phones with GPS capability or Palm Pilots with some sort of location tracking.

DORNIN: And there are the perks their parents never dreamed of.

SU-I LU, IBM INTERN: Obviously, the free housing, and we also get, you know, weekend trips to, like, Great America or like Yosemite or the ballpark.

DORNIN: All work and no play does not a high-tech firm make, an environment designed to produce the magic words.

ROSENBERG: Hopefully we'll graduate in May, cross my fingers, and hopefully we'll be back here full time.

DORNIN: The payback these companies are hoping for.

Rusty Dornin, CNN, Almaden, California.

(END VIDEOTAPE)

BAKHTIAR: "Worldview" whisks us to Africa, Asia and North America to look at business trends and techniques. These days, there are awards for everything: best song, best movie, even best clothes. We look back at a recent award ceremony honoring designers. And while style is on the fast track, electricity is slowing down, at least in Kenya: Find out how power cuts are bringing dark days to small business. And a Korean cultural renaissance hits China.

JORDAN: "Worldview" gets going in northeastern Asia. We saw in recent weeks the opening of the traditionally isolated North Korea. Its leader, Kim Jong-il, hosted a summit with his counterpart from South Korea. In the 1970s and '80s, North Korea's only significant allies were China and the Soviet Union. When the U.S.S.R. collapsed in the early '90s, North Korea was left with only one real ally: China. But North Korea found itself increasingly on its own when China established full diplomatic relations with South Korea in 1992.

As Rebecca MacKinnon reports from one town in China, the country seems eager to embrace Korean culture in general.

(BEGIN VIDEOTAPE)

REBECCA MACKINNON, CNN BEIJING BUREAU CHIEF (voice-over): The bride may be wearing white, but this happy though slightly nervous couple observes many important rituals of a traditional Korean wedding. The two families now joined in marriage are part of more than 2 million ethnic Koreans who've lived in China's Northeast for generations.

"Thanks to the Communist Party's good ethnic policies," says the groom's father, "our children will be able to pass on our traditional way of life."

In the city of Yanji, an hour from the North Korean border, more than half of all people are ethnic Korean. They speak Korean, eat Korean food, hang Korean signs over their shops along with Chinese characters, and buy music performed by South Korean pop stars. At the Yanbian No. 1 High School, classes are all taught in Korean. This may be part of China, but Chinese is taught here as a second language.

(on camera): The students at this elite, ethnic, Korean high school are benefiting from a Korean cultural renaissance in China that started after Beijing normalized relations with South Korea eight years ago.

(voice-over): The school principal says a number of students get scholarship money from South Korea. Almost all graduates go on to college.

UNIDENTIFIED MALE: Chip off the old block.

MACKINNON: Some will come to this grassy campus for an internationalized education at the Yanbian University of Science and Technology, funded largely by money from South Koreans and ethnic Koreans living in the United States and Canada. Founder Chin Kyung Kim is a Korean-American professor dedicated to helping fellow Koreans in this region.

PROF. CHIN KYUNG KIM, YANBIAN UNIV. OF SCIENCE AND TECH.: Because of this university, our Korean minority have the hope for the university educations. So that means, also, the Korean culture is in revival.

MACKINNON: Evidence of that revival isn't hard to find in Yanji. Just go to the park on a Sunday where traditional Korean song and dance looks to be in no danger of dying out.

Rebecca MacKinnon, CNN, Yanji, China.

(END VIDEOTAPE)

TOM HAYNES, CO-HOST: The heat is on in Kenya, our next destination. Kenya is a country on Africa's eastern coast bordering the Indian ocean. It also sits right on the equator. Despite its close proximity to water, much of Kenya suffers from an extremely dry climate. This season, conditions are so poor that Kenyan leaders have made drastic power cuts. The rationing has hurt small business and caused a job shortage. Authorities blame the power cuts on the weather, while others blame the government, citing poor planning and corruption.

Catherine Bond tells us what's generating all the debate.

(BEGIN VIDEOTAPE)

CATHERINE BOND, CNN CORRESPONDENT (voice-over): Drought, famine, poverty and power rationing, Kenya's president, Daniel Arap Moi, says Kenya is facing its worst crisis ever. The new power cuts alone estimated by his government to cost Kenya's economy at least $100 million U.S. a month in lost business. President Moi blames what he's called the "dry spell" for leaving hydroelectric dams empty.

DANEL ARAP MOI, KENYAN PRESIDENT: I am not a rainmaker. No Kenyans are responsible for the weather.

BOND: But his critics think differently.

WILFRED KIBORO, FED. OF EMPLOYERS: I think it's the government's fault. I think just blaming the weather, I think it's being dishonest. I think drought situations are not unknown in this part of the world, although perhaps the drought this year is much more severe than it has been in the past. But I think it all boils down to planning. And I think there has been extremely poor planning on the part of the government.

BOND: Charges of poor planning and alleged corruption. For years, Kenya's Energy Ministry was headed by one of the president's closest friends, Nicholas Biwott, seen here on the left, and named recently in a government-authorized report on public corruption tabled in Parliament.

Demanding privatization and transparency, Western donors held back funds crucial to developing the energy sector. Now it will be another year before additional sources of electrical power are running, meaning massive job losses and increased hardship.

UNIDENTIFIED MALE: This thing will have a lot of impact on the purchasing of power, on the people in the Uakari (ph), the farmers, the people who use power to do their small businesses. So, purchasing power, you go down.

BOND: An impact at a time when Kenya's government says 47 percent of its people in the countryside and 29 percent in the towns cannot afford to eat enough. And according to President Moi's recent appeal to the international community for emergency food aid, almost 3 million Kenyans are absolutely destitute.

Catherine Bond, CNN, Nairobi.

(END VIDEOTAPE)

BAKHTIAR: Next up, fashion's foremost strut their stuff. We go to center stage to the American Fashion Awards for a glimpse into glamour and big business. Seems technology and a new generation are having an impact on haute couture.

Elsa Klensch takes us there.

(BEGIN VIDEOTAPE)

ELSA KLENSCH, CNN STYLE CORRESPONDENT (voice-over): The American Fashion Awards took place at New York's Lincoln Center this year, and it was a night of a big change. More than 2,000 guests came to see it and have a quick snack in the tents in front of the reflecting pool at the side of Avery Fisher Hall. Among them, Elizabeth Hurley, Donna Karan and her daughter Gabi (ph), Sean Puffy Combs, Naomi Campbell, Carolina Herrera, Claudia Schiffer, and actresses Chloe Sevigny and Ellen Barkin.

CFDA President Stan Herman said the new show followed the Oscars closely. Award winners were chosen from three nominees.

STAN HERMAN, PRESIDENT, CFDA: And what's different tonight is the fact that we are "open the envelope, please" tonight. I, President Stan Herman, the don, doesn't know who the winners are. Nobody knows who the winners -- and I really don't.

KLENSCH: Most designers agreed with the change.

STEPHEN DWECK, DESIGNER: And it's a little bit more interesting. You get to have fun with it.

VERA WANG, DESIGNER: I thought it brought a lot more excitement, Elsa, to these awards. I think the fact that you don't know and that it becomes so competitive, I think that's really great for fashion.

ROBERT LEE MORRIS, DESIGNER: Elsa, I think it's brilliant. It's something we should have done 30 years ago when the CFDA was first formed. And now that it's done, everybody's happy about it.

KLENSCH: The show itself was short, fast and sleek, and so computerized it was almost sterile. Oscar de la Renta won the womenswear designer of the year award. He received his last award for lifetime achievement in 1989 and he was amazed to be back on the podium.

OSCAR DE LA RENTA, WOMENSWEAR DESIGNER OF THE YEAR: I really cannot believe that I'm here. But the most wonderful thing about winning this award is that I was in such great company.

KLENSCH: Helmut Lang's award for menswear designer of the year was accepted by Ingrid Sischy from "Interview" magazine. The design team of Lambertson and Truex came together to get their award for the accessory designer of the year.

RICHARD LAMBERTSON, ACCESSORY DESIGNER OF THE YEAR: Thank you to the CFDA and the nominating committee. And thank you to the fellow nominees, Helmut Lang and our good friend Janet Savitt (ph).

KLENSCH: Robert Kennedy Jr. presented a special humanitarian award to former designer Liz Claiborne who left the company in 1989. It was for the work of her Liz Claiborne/Art Ortenberg Foundation which supports conservation groups around the world.

LIZ CLAIBORNE, HUMANITARIAN AWARD WINNER: You don't know how wonderful it is to be here among you all again and how flattered I am by this award.

KLENSCH: For the first time, an award went to an Internet site in the newly created category of most stylish dot.com. Japanese designer Issey Miyake received it for his PleatsPlease.com. It was accepted for him by his associate Nancy Knox.

NANCY KNOX, ISSEY MIYAKE: From Issey: (SPEAKING IN JAPANESE)

KLENSCH: Bill Blass received a special award for being the dean of American fashion. Blass, who sold his business last year, was unable to be there because of ill health. He asked for his award to be accepted by a young designer who would represent a new generation. The chosen designer was Peter Som.

PETER SOM, DESIGNER: He's an inspiration and an example to myself and to all the young designers out there.

KLENSCH: Jeri Hall (ph) presented the award for international designer of the year to Jean Paul Gaultier.

JEAN PAUL GAULTIER, INTERNATIONAL DESIGNER OF THE YEAR: I must say that, for me, fashion is a passion, it's rhythm with life, and that when you like my fashion, you like all the fashion, and for us it's like a proof of your love.

KLENSCH: Valentino, who received the award for lifetime achievement, managed to deal calmly with an unexpected interruption. He was heckled by anti-fur protesters. But, Valentino, who was presented with his award by Ashley Judd, went on with his acceptance speech. And he got a standing ovation for doing it all with style.

VALENTINO, DESIGNER: And a special thanks to Giancarlo Giambetti (ph). We did a long walk together. And without him, I wouldn't be here tonight. I bow to America with all my gratitude. For 40 years, they believe in Valentino. Thank you very much.

That's the American Fashion Awards for the year 2000.

Elsa Klensch, CNN, New York.

(END VIDEOTAPE)

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

JORDAN: In today's look at "Democracy in America," a key development in the U.S. presidential race. After weeks of speculation, Texas Governor and Republican presidential candidate George W. Bush has introduced former U.S. Defense Secretary Dick Cheney as his running mate. Cheney served as a cabinet member under Bush's father, former President George Bush. The Texas governor says he's honored to call Cheney a friend and a running mate. Cheney says the feeling is mutual.

(BEGIN VIDEO CLIP)

CHENEY: Governor, I'm honored and proud to join your team. And I enthusiastically accept the challenge for this reason: I believe you have the vision and the courage to be a great president.

(END VIDEO CLIP)

JORDAN: Bruce Morton has a closer look at Bush's new number-two man.

(BEGIN VIDEOTAPE) BRUCE MORTON, CNN CORRESPONDENT (voice-over): Dick Cheney got elected six times to the House of Representatives. But in normally Republican Wyoming, that's not remarkable. His one short run at higher office was when he thought about running for president in 1996.

(BEGIN VIDEO CLIP, MARCH 24, 1994)

CHENEY: It's a big step to take and not one to be taken lightly. And I honestly and legitimately have not yet made that commitment to run.

(END VIDEO CLIP)

MORTON: But he did explore, raised more than $1 million in 1994, campaigned for Republicans in 47 states, went to the traditional places.

(BEGIN VIDEO CLIP, MAY 2, 1995)

CHENEY: I was happy to accept the invitation to come to New Hampshire, and I'll be seeing a number of other folks while I'm here.

(END VIDEO CLIP)

MORTON: He was moved by issues, especially in international policy.

(BEGIN VIDEO CLIP, MAY 2, 1995)

CHENEY: What I see the Clintons advocating, I think is fundamentally wrong.

(END VIDEO CLIP)

MORTON: He finished fourth in a straw poll in Iowa in the summer of 1994, behind eventual nominee Bob Dole, who won it, and ahead of Pat Buchanan and Dan Quayle.

(BEGIN VIDEO CLIP, AUGUST 9, 1994)

CHENEY: I had not campaigned the state previously, hadn't organized the state, nor did I organize anything for this event. So I felt comfortable with the showing.

(END VIDEO CLIP)

MORTON: Still, before Dole, for instance, had even formally announced, Cheney was out, withdrawing in the first week of January 1995. Some said he wanted to spare himself and his family the ordeal of a long campaign. Dan Quayle said money was a factor.

(BEGIN VIDEO CLIP, FEBRUARY 8, 1995)

DAN QUAYLE, FMR. VICE PRESIDENT: Jack Kemp and Dick Cheney basically said that they didn't want to go through the demeaning money-raising process that you have to go through to be nominated, and there's something to that.

(END VIDEO CLIP)

MORTON (on camera): What does Cheney's brief run tell us? He won't be the attack dog some number-twos have been -- Richard Nixon for Dwight Eisenhower, say, or Spiro Agnew for Nixon. He won't make the red-meat speech. He prefers issues to passion. He probably will impress voters as a grown-up, somebody who could do the number-one job if he had to.

Bruce Morton, CNN, Philadelphia.

(END VIDEOTAPE)

BAKHTIAR: Well, our final story takes us into orbit where the Russian service module Zvezda has docked with the International Space Station.

JORDAN: The station's first crew is slated to arrive in October. The module will allow that crew to live and work on the station. But the space laboratory, a joint venture of 16 countries, will not be complete for another five years.

BAKHTIAR: Great pictures.

Well, that does it for us today on NEWSROOM. Thanks for joining us.

JORDAN: We'll see you back here tomorrow. Bye.

BAKHTIAR: Bye.

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