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Newsroom/World View

NEWSROOM for February 21, 2001

Aired February 21, 2001 - 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: And welcome to this Wednesday edition of CNN NEWSROOM. I'm Shelley Walcott. Here's what's coming up.

In today's news: a man sworn to protect the United States accused of doing just the opposite. An FBI agent is charged with spying for Russia. Next, in our "Business Desk": female entrepreneurs. They've been successful stateside. We'll look at how they're faring in Europe. On to "Worldview" for a stop in Spain and a look at a bloody campaign of violence launched by Basque separatists. Then, in "Chronicle": African-American history in the words of those who made it.

An agent of the U.S. Federal Bureau of Investigation is arrested on accusations of spying for Russia. Robert Philip Hanssen allegedly has given Moscow volumes of secrets during the last 15 years. Tuesday, a federal court in Virginia ordered Robert Philip Hanssen, a 25-year employee of the FBI, to be held without bond on espionage charges. Authorities say he was arrested Sunday while dropping off information in a park in northern Virginia for a Russian counterpart.

The FBI has been watching Hanssen closely for the last four months. Agents say they broke the case after obtaining Russian intelligence documents which pointed a finger at Hanssen. A 110-page affidavit says Hanssen received more than $1.4 million in cash and diamonds from Russia. It accuses him of compromising dozens of U.S.- government classified documents and several intelligence methods and operations.

Authorities say Hanssen's actions resulted in the executions of two Russian double agents working for the United States. Hanssen faces life in prison or the death penalty if convicted.

FBI director Louis Freeh says the full extent of damage from the Hanssen spy case isn't known yet. Freeh says Hanssen had access to a broad range of national secrets, particularly those dealing with Soviets and Russians.

David Ensor reports on what may have been lost to Moscow at the hands of Hanssen.

(BEGIN VIDEOTAPE) DAVID ENSOR, CNN CORRESPONDENT (voice-over): This is David Ensor in Washington.

Robert Hanssen had access, U.S. officials say, to some of the crown jewels of U.S. national security. So the damage he allegedly did over 15 years passing more than 6,000 pages of secrets to the Russians is serious indeed. Second only, some officials suggest, to the damage done by Aldrich Ames, the CIA traitor caught in 1994.

LOUIS FREEH, FBI DIRECTOR: The full extent of the damage done is yet unknown, because no accurate damage assessment could be done during the course of the covert investigation without jeopardizing it. We believe, however, that it was exceptionally grave.

ENSOR: For example, one of the men behind Vitaly Yurchenko in these pictures taken back in 1985 when Yurchenko redefected back to Russia after first defecting to the United States. He was Valeriy Martynov, a KGB officer spying for the U.S. And when he arrived in Moscow, he was arrested, tried and shot, after being fingered officials, now say by Hanssen as well as Ames.

So was another U.S. Russian agent. The rest of the damage, according to the affidavit: item, he "compromised specific electronic surveillance and monitoring techniques and precise targets of the United States intelligence community."

Item: He disclosed to the KGB the FBI's secret investigation of Felix Bloch, a foreign service office for espionage.

Item: He compromised numerous FBI counterintelligence investigative techniques, sources, methods, and operations.

DAVID MAJOR, FMR. FBI COUNTERINTELLIGENCE OFC.: When you look at the list of things that he allegedly compromised, it has to take your breath away because what it does is it compromises the capacities and capabilities of this nation to defend itself.

ENSOR: And why did he do it? The affidavit quotes from a letter it says Hanssen sent the KGB: "I decided on this course when I was 14 years old, " Hanssen wrote, saying he made the decision to spy for Russia after reading the memoirs of the famous British spy Kim Philby.

(on camera): So while money was clearly a motive, officials say they believe pride was, too, the pride of a clever man who wanted to play the spy game to the hilt.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

WALCOTT: Well, it seems Americans are captivated by dramas of intrigue, national security and betrayal. the fascination has existed for many decades.

But as Garrick Utley tells us, the perception of spies is no longer as glamorous as it once was. (BEGIN VIDEOTAPE)

GARRICK UTLEY, CNN CORRESPONDENT (voice-over): There is the nostalgia of espionage: a time when the third man was about more than foreign intrigue. Spies were about mystery and mystique, good and evil. And then there is the reality of espionage: a time when spies could alter the nuclear arms race and the Cold War.

Klaus Fuchs passed on secrets of the American atom bomb to the Soviet Union, was caught and served nine years in prison. In Moscow, Soviet military secrets were passed onto the United States during the Cuban Missile Crisis by Colonel Oleg Penkovsky, who was caught and executed. And there came a time when high-flying U-2 planes and spy satellites could gather masses of valuable information.

(on camera): But planes and satellites don't grab our imagination the way a spy does. Perhaps that's because a spy is a human who operates alone and has committed a betrayal.

(voice-over): That is why "The Spy Who Came in From the Cold" and those still coming in cannot be true heroes. We sense a character flaw, as we did with Aldrich Ames, the CIA official arrested in 1994. He revealed more than 100 American covert operations to the Soviet Union, named at least thirty agents, 10 of whom were executed by the Soviets, and was paid more than $2 million for his efforts. What does he think of spying?

(on camera): Ames has said -- quote -- "It is corrupting to engage in such activities: corrupting to the person who does it and corrupting to the people or institutions which sponsor it. That is why espionage has always been disreputable, because people instinctively understand it."

(voice-over): And now, once again, with the arrest of Robert Philip Hanssen, we understand how spying is about betrayal.

Garrick Utley, CNN, New York.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

MILES O'BRIEN, CNN SPACE CORRESPONDENT: It's another West Coast turnaround for NASA. Three days of foul weather at Florida's Kennedy Space Center forced mission managers to order a $1 million detour for the shuttle Atlantis. After a journey of 5.4 million miles, the orbiter swooped down on its home away from home: Edwards Air Force Base, California.

The quintet of astronauts spent a week docked at the International Space Station Alpha. Stuffed inside the orbiter payload bay: the $1.4 billion Destiny science lab, the new heart, soul and nervous system for the sprouting space station. Atlantis crewmember Marsha Ivins used the shuttle's robot arm to gently inch Destiny onto its berth at the station. Spacewalkers Tom Jones and Bob Curbeam were floating nearby, talking her through the blind maneuver. It was the first of three space walks for the pair, the last, the 100th in U.S. space history.

Sandwiched between the walks: some time with the station crew. Commander Bill Shepherd and his Russian crewmates Sergei Krikalev and Yuri Gidzenko have now logged more than 100 days aboard Alpha. Their shuttle visitors did not come empty-handed. They brought aboard 3,000 pounds of supplies, including some personal items: valentines, chocolates and some DVD movies. The Atlantis crew also took out 850 pounds of station trash.

Happy and successful as this visit was for the Alpha crew, the next shuttle to drop in -- Discovery, due in three weeks -- has an even more precious payload: the crew that will replace them.

Miles O'Brien, CNN.

(END VIDEOTAPE)

WALCOTT: Chances are we all know one. It could be your mother, your sister or a good friend. Today's "Biz Desk" focuses on women who run their own business. Female entrepreneurs in the United States have been around for hundreds of years. Case in point: In 1777, the contract for printing copies of the Declaration of Independence was awarded to a woman: Mary Katherine Goddard. But not every country has been as welcoming to female entrepreneurs.

Fionnuala Sweeney reports from the European Union.

(BEGIN VIDEOTAPE)

FIONNUALA SWEENEY, CNN CORRESPONDENT (voice-over): Julie Meyer is an entrepreneur. With three male colleagues, she founded First Tuesday, an online-offline business designed to help start-up companies find capital, talent and services.

As a former venture capitalist, she saw the potential for growth in the market and took the plunge just two years ago.

JULIE MEYER, FIRST TUESDAY: That's why a lot of women set up their own companies. It's because you get to set the rules. And then you have to live by your rules. So there's a certain discipline and rigor that's involved. It's not like you get to just be a prima donna. But you get to set up the rules.

SWEENEY: However, Julie doesn't fit the stereotype of women in business. A recent European Union survey found that men account for 75 percent of the total number of self-employed. Some 70 percent of those who start new businesses are men, while enterprises started by women have a lower survival rate.

And it's not just in their own businesses that women are not making it to the top.

BARBARA HELFFERICH, MEMBER OF THE EC CABINET: From what we know in terms of country studies, the situation is quite bad. That is, there are very few women in high executive positions. We have figures in relation to women in banks. And they tell us that there is less than 5 percent women in high -- in the highest position in the banking sector.

In many countries, there are hardly any women at all. Some countries, there is zero CEOs in high positions.

SWEENEY: The European Union is working with the commission on a new program of gender equality, to tackle various areas where women are underrepresented or discriminated. At First Tuesday, Julie Meyer sees it another way.

MEYER: I always kind of brought people together. And I take an interest in what other people are doing. So I think it has more to do with my characteristics as an individual than the fact that I was a woman. But, probably, they did need a woman to keep them on track.

SWEENEY: Fionnuala Sweeney, CNN, London.

(END VIDEOTAPE)

WALCOTT: Business and Politics are the themes in "Worldview." We take you to Taiwan to find out how national security impacts business. Plus, more peril in politics: We spotlight Spain, where violence makes it difficult for one tourism official to do his job. How can you attract travelers when you don't feel safe even in your own country?

RUDI BAKHTIAR, CO-HOST: Once again, the violence in Spain tops our coverage in "Worldview." As we told you yesterday, last year was one of the bloodiest ever in a 30-year campaign of violence waged by Basque separatists. The radical group called ETA killed about two- dozen people and about 800 since 1968.

They're fighting for their own independent Basque state along Spain's northern border with France. While many of the region's three million Basques do support independence, the vast majority oppose the violent tactics used by ETA. Although its membership isn't thought to number more than a few hundred, the group stirs up fear throughout Spain, especially in Basque regions.

Al Goodman has more.

(BEGIN VIDEOTAPE)

AL GOODMAN, CNN CORRESPONDENT (voice-over): For Kote Villar, the worry is with him around the clock. "Is the car ready?," he asks his bodyguards. At 7:00 a.m., they are already in the street on the lookout, sweeping for bombs, under cars, in trash cans, checking license plates.

The 38-year-old Villar is not a major government official. He is a town councillor. But the town is San Sebastian, in the Basque region, torn by ETA separatist violence. Many people like Villar can't go anywhere without protection.

KOTE VILLAR, CITY COUNCILMAN (through translator): In the Basque country, if you think differently from the ETA terrorist band, you have to live with a bodyguard. Politics here is completely conditioned by an armed band that wants to impose its criteria through extortion and killing.

GOODMAN: Villar belongs to the prime minister's Popular Party, which has enraged ETA with its hard-line stance against terrorism. Last year, ETA killed five town councilmen across Spain. Villar survived an ETA assassination attempt. A bomb hidden in a flower pot failed to explode in a cemetery.

A CNN crew was there as Villar and local party leaders paid respects to another councilman killed three years ago by ETA.

ESTEBAN BELTRAN, AMNESTY INTERNATIONAL: A part of the society in the Basque country is under pressure. Under pressure mean terrified or feel threatened.

GOODMAN: Thousands of Spaniards now are forced to have bodyguards, especially in the Basque region. Private-security agencies provide many escorts for low-level officials, journalists, even teachers. There aren't enough police to do the job. The Basque government and non-nationalist political parties paid $10 million U.S. last year for security protection.

VILLAR (through translator): I miss a lot of intimacy when I'm with my girlfriend in the car. I can't have a private conversation with her. In restaurants, you always have to reserve two tables, one for yourself, one for the bodyguards. Freedom vanishes when you've got a bodyguard.

GOODMAN (on camera): What is your motivation? Why do you keep doing this with all of this pressure?

VILLAR (through translator): This lack of freedom forces some to leave the Basque country and others like me to stay and fight to restore freedom here. It's one of the fundamental reasons we're still here.

GOODMAN (voice-over): Edurne Uriarte teaches political science, is a Socialist Party member and writes a newspaper column. The mother of a young son, she survived an ETA assassination attempt last December. Her bodyguard spotted a bomb in a university elevator.

EDURNE URIARTE, POLITICAL SCIENCE PROFESSOR: This one.

UNIDENTIFIED FEMALE: Where was the bomb placed?

URIARTE: On this side.

GOODMAN: Uriarte plans to stay and fight.

URIARTE: If I leave, I won't be here looking at the end of ETA. And I want to be here, not only looking at the end of ETA, but working for it, to have this end of ETA.

GOODMAN: For security reasons, her bodyguards asked not to be videotaped. But the security measures she sees in every part of her life.

URIARTE: You do the same things. But at the same time, you think all the time that perhaps this day you could die.

GOODMAN: Business executive Jose Maria Ruiz also narrowly escaped death. The attack was four years ago.

JOSE MARIA RUIZ, EMPLOYERS ASSN. OF GUIPUZCOA (through translator): They put a bomb under my car. But I was away and I had asked someone to get the car for an oil change. And the bomb exploded. And that person has amputated legs.

GOODMAN: Last summer, the president of Mr. Ruiz's business- owners' association was killed by an ETA car bomb.

RUIZ (through translator): We take refuge in our work, day in and day out. It's sometimes almost like therapy.

GOODMAN: Then there are the letters. ETA demands a so-called revolutionary tax: extortion, executives say, to avoid attack. No one knows how many actually pay. It adds to a climate of fear, where people are nervous to talk about Basque politics.

UNIDENTIFIED FEMALE (through translator): I'm not going to talk to you about this because we're in a public place. And it's too controversial.

GOODMAN: For Villar, bodyguards make it tough to do his assigned job at City Hall.

VILLAR (through translator): It's difficult to be the tourism councillor and sell San Sebastian, which is beautiful, telling everyone to come to our city, take a stroll, enjoy its restaurants, discotheques, museums, when I can't do that myself.

GOODMAN: But Villar, even as he tries to encourage tourism, also keeps working to end the violence. For the foreseeable future, he'll need those bodyguards.

Al Goodman, San Sebastian, Spain.

(END VIDEOTAPE)

WALCOTT: Next stop: the Far East for a closer look at economic relations between China and Taiwan. Taiwan is an island about 90 miles or 140 kilometers off the Chinese coast. When Chinese communists gained control of mainland China in 1949, the Chinese nationalist government retreated to Taiwan. From 1945 to about 1970, the nationalist government had considerable international support.

But that support waned after 1970, when China became the major focus of international attention. After 30 years of economic restrictions, mini-trade links started between Taiwan and China last month. But Taiwan's government still restricts Taiwan investments in China. Official government figures reflect about $15 billion of business between the two countries since last June. But unofficial estimates put that figure closer to $50 billion.

Peggy Wang (ph) reports on how politics can't stop Taiwan business from moving into China.

(BEGIN VIDEOTAPE)

PEGGY WANG, CNN CORRESPONDENT (voice-over): From Shenyang to Shanghai to Guangzhou, Taiwan factories are all over China making everything from PCs to cars to food products, all cashing in on the 1.2 billion strong market. President Enterprises was one of the first Taiwan pioneers to go to China eight years ago.

C.Y. KAO, PRESIDENT ENTERPRISES (through translator): It's mostly because China has sufficient amounts of laborers. Their land is cheap. Their labor is cheap.

WANG: In the past, most of the businesses moving to China were labor- intensive, such as shoes, bicycles and garments. That didn't matter so much when the growing hi-tech industry was booming at home. But over the past five years, even those companies are following the dollar trail to the mainland.

MICHAEL DING, INTERNATIONAL INVESTMENT: The China fever is not new. The businessmen here, you know, they cannot wait. You know, it's "Come on." In China, they're progressing so quickly." If we're not acting now, we're going to be late.

WANG: That means a hot topic in business circles right now is whether the government should relax Taiwan's restrictions. Taiwan's go-slow, be-patient policy limits the amount of investments in China and taxes those who invest in China, all in the name of national security.

CHRISTINA LIU, NATIONAL TAIWAN UNIVERSITY: They say: well, because those companies may hurt the national security. And that's really hurting because they are not doing anything wrong. And you just kind of sentence them, saying that these are the people who doesn't love Taiwan. And it's very harsh.

WANG: Analysts say Taiwan has its reasons to be paranoid about China investment. After all, China still refuses to give up its vow to militarily invade Taiwan should Taipei declare independence. Beyond national security, Taiwan also fears that China may lure away its bread and butter of capital: skilled labor and technology.

But business leaders say there are still other options to keep the business in Taiwan.

BARRY LAM, QUANTA: However, in Taiwan, we will develop more high-end product, like smart phone, like file server and storage product. We (UNINTELLIGIBLE) in Taiwan. So we will hire more people in Taiwan, especially for the R&D people.

WANG: That's a view shared by top business leaders, such as Formosa Plastics' Wang Yung-Ching, Acer's Stan Shih and Yulon's Kenneth Yen, who are calling to relax the restrictions.

(on camera): They may be in luck. Both President Chen Shui-bian and Premier Chang Chun-hsiung are already hinting of changes ahead, provided there's no threat to national security. In the meantime, as officials engage in this endless semantic debate over one China, pragmatic Taiwan investors are just following their nose to wherever the money is.

Peggy Wang, for CNN Financial News, Taipei.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

ROBERT JOHNSON, ATLANTA, GEORGIA: Hello, my name is Robert Johnson and I'm from Atlanta, Georgia. And my question is, when will the phone, TV and computer become one unit and sold as such?

ALLISON TOM, CNN INTERACTIVE CORRESPONDENT: The phone, the television and the computer may become one anytime soon. A lot of industry experts say that we're seeing that right now. There are certain devices, like your phone, that can actually get video or still images. A lot of places in Europe and Asia are seeing that right now. It will eventually move into the United States.

But what we'll see is maybe in the next three years, and maybe a few years even longer than that, where we'll actually have one unit to do just about everything. You'll see most commonly used items like either household appliances that can connect to the Internet. Also mobile phones that are Internet enabled. And your television can also be used to connect to the Internet, as well as your computer getting somewhat of a little bit of video and audio, depending on how your connection is.

Now, the one thing that everyone will agree on is that there needs to be greater speed and bandwidth. That will really give us the actual strength and the power to be able to get all this information across onto our computers, our cell phones or our televisions.

So it will take some time, but we're starting to see the technology changing so rapidly that a lot of these devices may be available on one unit pretty soon.

(END VIDEOTAPE)

WALCOTT: Well, as you know, February is Black History Month. And every year at this time, reporters tend to file a lot of stories about African-Americans who have made significant contributions to society.

Well, it's one thing to have reporters give accounts of history's news makers and quite another to have the news makers tell the stories themselves.

Bruce Morton has this.

(BEGIN VIDEOTAPE)

BRUCE MORTON, CNN CORRESPONDENT (voice-over): This is Black History Month, so this week, some black history in the words of those who made it.

"The destiny of the colored American is the destiny of America." -- Frederick Douglass, abolitionist, 1862.

"We have come over a wave that with tears has been watered; we have come treading our path through the blood of the slaughtered." -- James Weldon Johnson, 1900.

"No race can prosper until it learns there is as much dignity in tilling a field as in writing a poem." -- Booker T. Washington, 1901.

"The cost of liberty is less than the price of repression." -- W.E.B. DeBois, 1909.

"I am not tragically colored. I do not weep at the world. I am too busy sharpening my oyster knife." -- Zora Neale Hurston, 1928.

"We live here, and they live there. We black, and they white. They got things, and we ain't. They do things, and we can't. It's just like living in jail." -- Richard Wright in the novel "Native Son," 1940.

"I had felt for a long time that if I was ever told to get up so a white person could sit that I would refuse to do so." -- Rosa Parks, 1955, recalling the Montgomery bus boycott she began.

"The Negroes' great stumbling block is not the white citizens counselor or the Ku Klux Klanser but the white moderate who is more devoted to order than to justice." -- Martin Luther King Jr., 1963.

"The day that the black man takes an uncompromising step and realizes that he's within his rights when his own freedom is being jeopardized to use any means necessary to bring about his freedom or put a halt to that injustice, I don't think he'll be by himself." -- Malcolm X, Al-Hajj Malek Al Shabaz, 1964.

"If the Freedom Democratic Party is not seated now, I question America. Is this America where we have to sleep with our telephones off the hooks because our lives be threaten daily because we want to live as decent human beings in America?" -- Fanny Lou Hamer to the 1964 Democratic Convention. Her delegation was not seated.

"Sheriff, I may be an agitator, but I'm not an outsider. I grew up 90 miles from here, and we are going to stay here until these people are allowed to register and vote." -- John Lewis to Sheriff Jim Clark, Selma, Alabama, 1965.

"Keep asking me, no matter how long, on the war in Vietnam I sing this song, I ain't got no quarrel with the Viet Cong." -- Mohammad Ali, Vietnam draft resister, 1966.

"Violence is as American as cherry pie." -- Rap Brown, 1967.

"`We, the people': It is a very eloquent beginning, but when that document was completed on the 7th of September in 1787, I was not included in that `We, the people.' But now through the process of amendments, interpretation and court decision, I have finally been included in `We, the people.'" -- Congresswoman Barbara Jordan, 1974.

"Keep on a'walking. Gonna keep on a'walking till I get to freedom land." -- All the many Americans who marched on a journey this is not finished yet.

I'm Bruce Morton.

(END VIDEOTAPE)

WALCOTT: Quite something.

Well, coming up tomorrow on NEWSROOM: He was, at one time, perhaps the most prominent doctor in all of America. Louis Sullivan served as secretary of Health and Human Services under former President Bush. Today he's president of Atlanta's Morehouse School of Medicine. Our Joel Hochmuth talks to him as part of our series of profiles during Black History Month. Sullivan's mission today: getting more African-Americans interested in the field of medicine.

(BEGIN VIDEO CLIP)

LOUIS SULLIVAN, PRES., MOREHOUSE SCHOOL OF MEDICINE: This is an opportunity to really serve other people, an opportunity to do something that is needed, that's important and that will change the lives of other people.

(END VIDEO CLIP)

WALCOTT: And be sure to log on to cnnfyi.com tomorrow for your chance to chat with civil rights leaders Andrew Young and Winnie Mandela. It's all a part of cnnfyi.com's "Chasing the Dream." That's a celebration of Black History Month.

And we look forward to seeing you back here as well. Have a great day. 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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