Return to Transcripts main page

Your World Today

Bush, Singh Seal Landmark Nuclear Energy Pact; Pakistan Explosion; Deepening Political Divide in Iraq

Aired March 02, 2006 - 12:00   ET

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

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: The U.S. and India celebrate a nuclear energy deal, but what about the nonproliferation treaty?
JIM CLANCY, CNN INTERNATIONAL ANCHOR: Next door in Pakistan, explosions rips through an area near the U.S. Consulate in Karachi, killing an American diplomat and three others. President Bush going there next.

VERJEE: Second thoughts. Kurds, Sunni and secular movements say Ibrahim al-Jaafari's nomination as Iraq's prime minister should be reconsidered.

It's 10:30 p.m. in New Delhi, 8:00 p.m. in Baghdad.

I'm Zain Verjee.

CLANCY: I'm Jim Clancy.

Welcome to our viewers around the world. This is CNN International. And this is YOUR WORLD TODAY.

India's prime minister summed it like this: "We made history." Manmohan Singh and U.S. President George W. Bush announcing a nuclear energy agreement. This is a pact that would grant India access to advanced U.S. nuclear technology and fuel to help to power its energy- starved economy. But it is not a done deal yet.

Let's bring in Satinder Bindra, live in New Delhi.

Satinder, what are the challenges that you see facing this deal?

SATINDER BINDRA, CNN SR. INTERNATIONAL CORRESPONDENT: Well, Jim, clearly, the first challenge is to pass muster in Congress. Both sides have agreed to this. But ultimately, Congress has to ratify the entire agreement.

Despite that, a sense of euphoria amongst official circles on both sides. Excitement both from the prime minister and the president.

And Jim, essentially this is what the deal involves: India's entire nuclear facilities have been split into two categories, military and civilian, and all of India's civilian reactors will now come under international safeguards. Very soon, also, there could be a trade between India and the United States, nuclear reactors, nuclear know-how. All that sort of information could be traded. And this could bring in billions of dollars in terms of revenues for U.S. companies.

The U.S. president knows that this deal will be criticized by many. Many people will question why India's getting exceptional treatment. But he defended what happened today and said this was the right way to go forward.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We concluded today in historic agreement today on nuclear power. It's not an easy job for the prime minister to achieve this agreement. I understand. It's not easy for the American president to achieve this agreement, but it's a necessary agreement. It's one that will help both our peoples.

(END VIDEO CLIP)

BINDRA: Now, Jim, this agreement takes relationships between these two countries to an entirely new level. And there will be tangible benefits for the United States.

For instance, every year, India imports billions of dollars worth of defense equipment. Now, under this new friendship, it's likely that U.S. companies will bag a lot of these defense orders -- Jim.

CLANCY: Put it into some perspective, particularly for the U.S. audience here. India, a longtime leader in the non-aligned movement. As such, there's been a parade of Indian leaders in history that made a political career out of being standoffish with the United States. This does represent a historic turn, if it comes to fruition.

BINDRA: Absolutely. Absolutely. That's why we're hearing praises such as this is a "coup," this is "historic."

If you'll remember, Jim, also, in 1998, shortly after India exploded five underground nuclear devices, the United States imposed sanctions on India. Relations nose-dived. And now the United States wants to amend laws to help India.

Why? Because they see India as growing power. India, they say, or administration officials say should get access to alternative sources of fuel. And once India gets that, it will also bring down the price of oil. And that will also benefit the United States, Jim.

So a very major day here in terms of international diplomacy.

Back to you.

CLANCY: At the same time, very briefly, India developed nuclear weapons. It refused to sign the nonproliferation treaty. There's got to be some people there in New Delhi that are saying, we got away with one, we're going the get the advanced technology anyway.

BINDRA: Yes. I mean, India hasn't signed the nonnuclear proliferation treaty. But there are others here, equally, Jim, who would point out to India's record. In 30 years, no accusations against India that India has been proliferating.

So with a good track record. Administrative -- administration officials saying they were willing to reward India.

CLANCY: All right. Satinder Bindra, I want to thank you very much for that great perspective on this important deal today.

Mr. Bush and Mr. Singh's nuclear agreement is the subject of our "Question of the Day."

VERJEE: We're asking you this: Is the U.S.-India nuclear deal undermining the nuclear nonproliferation treaty?

CLANCY: E-mail us your thoughts at YWT@CNN.com. Don't forget to include your name and where you're writing us from.

VERJEE: Two days before U.S. President Bush sets foot in Pakistan, two explosions rocked the city of Karachi, killing at least four people, including a U.S. diplomat.

Senior Asia Correspondent Mike Chinoy tells us now what happened.

(BEGIN VIDEOTAPE)

MIKE CHINOY, CNN SR. ASIA CORRESPONDENT (voice over): It was 9:15 a.m. Thursday local time. A car carrying a U.S. diplomat was approaching the back entrance of the American Consulate in Karachi, just behind the Marriott hotel. Pakistan's interior minister says that suddenly another car accelerated, crashed into the American's car and blew up.

The diplomat, his driver, the suicide bomber and a Pakistani security guard were killed. Over 50 people were injured.

AFTAB AHMED KHAN SHERPAO, PAKISTAN INTERIOR MINISTER: The intensity was so high that I think this was one of the highest that we have seen (INAUDIBLE). And because it's made a crater which is 12 feet by eight feet, and it's three feet deep. And the vehicle which was hit, it has -- you know, it flew into the air and was thrown to the other side of the wall.

CHINOY: The attack took place in one of the most heavily-guarded areas of Karachi. There were more than 150 Pakistani security personnel deployed to protect the consulate, plus two armored vehicles. But it wasn't enough.

SHERPAO: Let me tell you that the security was very, very good. But when it comes to a suicide bomber, there's very little that the law enforcement agencies can do.

CHINOY: Suspicion has immediately fallen on al Qaeda and its local extremist allies. It was not the first time there's been attack like this in Karachi. In 2002, a car bomb outside the U.S. Consulate killed 11 people. Another bomb at the Sheraton hotel left eight dead. And Karachi was the place where American journalist Daniel Pearl was kidnapped and murdered.

A seeming lawless, violent city, Karachi has been an important base for al Qaeda and its allies ever since they were driven out of Afghanistan after September 11. Several important al Qaeda figures have been arrested there, including Ramzi bin al-Shibh, a close associate of the 9/11 hijackers who was detained after a gunfight with local police.

More recently, Afghanistan's government has claimed that al Qaeda and Taliban operatives have received training and support in Karachi for suicide bombings inside Afghanistan.

(on camera): Pakistani officials say the Karachi attack was clearly intended to embarrass the government of President Pervez Musharraf, a key U.S. ally in the war on terror, and to send a signal to President Bush, who's due here this weekend. And it's prompted an urgent last-minute review of security arrangements for the president's visit.

Mike Chinoy, CNN, Islamabad.

(END VIDEOTAPE)

CLANCY: Violence in Iraq continues as a political crisis brews within a crippled government. To the violence.

A bomb ripping through a vegetable market in a Shia Muslim section of Baghdad, south of the capital. Then a Sunni imam gunned down as he was leaving morning prayers in Basra.

Gunmen also targeted Adnan al-Dulaimi. He's a Sunni political leader. He escaped, but one of his bodyguards was killed on the scene.

Earlier, gunmen killed 10 Iraqi security forces. That was at a checkpoint north of the capital

VERJEE: As sectarian strife tears through Iraq, Aneesh Raman reports there is a deepening political divide as well.

(BEGIN VIDEOTAPE)

ANEESH RAMAN, CNN CORRESPONDENT (voice over): If ever there was a time Iraq needed leadership, it is now. With a rash of attacks pitting Sunni against Shia on the streets of the capital, there's the growing prospect that sectarian strife could pull the country apart. And now things just got worse, with an all-out political war brewing over who should be the country's prime minister.

Ibrahim al-Jaafari holds the job now, and the ruling Shia Alliance once him to continue. But on Thursday, the Kurdish and Sunni blocs, along with Ayad Allawi's secular list, demanded al-Jaafari's candidacy be withdrawn. Jaafari has since canceled a meeting set to take place among all political groups, further widening a deepening political divide that could put the formation of the government back by months and leave Iraqis wondering who exactly is in charge.

Jaafari, in many respects, is a front man for the country's Shia religious leaders, owing his re-nomination to support from anti- American Shia cleric Muqtada al-Sadr.

On Wednesday, Sadr met the country's Shia spiritual leader, the Grand Ayatollah Ali al-Sistani, fueling concerns over Sadr's growing prominence given that he is control of one of the country's largest militias who are widely believed to have been behind a number of recent reprisal attacks against Sunnis.

ADNAN PACHACHI, IRAQI PARLIAMENT MEMBER: He's after power. And I think now that he has tasted power, he would like to build on that.

RAMAN: Until now, the most powerful political figure in the government was Abdel Aziz Hakim, head of the largest Shia religious party with close ties to Iran. Hakim is in charge of a large militia of his own, and the scene is now set for a battle for political control between rival religious clerics.

(on camera): All this means it could take the better part of this year for the government to form. And in the meantime, any hopes of unity among political leaders is now on hold.

Aneesh Raman, CNN, Baghdad

(END VIDEOTAPE)

CLANCY: President Bush, of course, is abroad, trying to make some headlines there in India. Also, he's been talking about the war on terror and Iraq.

But back at home, the administration's domestic troubles just will not go away. The question being asked this day is, how much did the White House know in the hours before Hurricane Katrina savaged the southeastern coast?

Now videotape of conversations between President Bush and some of his senior officials on the ground have been public for months. But a newly-released transcripts of those tapes caused a lot of people to go back and reexamine them very closely. It's making a storm occur far after the storm, and the administration's explanations don't see seem to be cutting it, as explained now by CNN's Tom Foreman.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice over): From roaring winds, to failed levees, to stranded survivors, the Bush administration was clearly warned about it all before the hurricane hit. That case has been building for months, and this latest version of events from The Associated Press is fanning the frustration by showing the president once again in the calm before the storm saying the situation is in hand. BUSH: I want to assure the folks at the state level that we are fully prepared to not only help you during the storm, but we will move in whatever resources and assets we have at our disposal after the storm to help you deal with -- with the loss of property. And we pray for no loss of life, of course.

FOREMAN: What's new in this report is a bit more information about exactly who knew what when. Not surprising to hear hurricane expert Max Mayfield tell the administration the levees very well could fail.

MAX MAYFIELD, NATIONAL HURRICANE CENTER: I don't think anybody can tell you with any confidence right now whether the levees will be topped or not. But that's obviously a very, very grave concern.

FOREMAN: But then, after the storm, the president said, "I don't think anyone anticipated the breach of the levees," a theme echoed by Homeland Security chief Michael Chertoff. Indeed, Chertoff insisted time and again much of what Katrina brought was a surprise, even though his own head of the Federal Emergency Management Agency, FEMA, quite specifically warned him about many coming problems.

MICHAEL BROWN, FMR. DIRECTOR FEMA: I also heard there's no mandatory evacuations. They're not taking patients out of hospitals. They're not taking prisoners out of prisons, and they're leaving hotels open in downtown New Orleans. So I'm very concerned about that.

FOREMAN (on camera): Still, most of this is stuff that we have heard before. So why is it news now? Well, maybe because it's the six-month anniversary of the storm and maybe because opponents of the administration are jumping all over it. And maybe because the White House is acting like it is news they don't want to hear

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

VERJEE: Coming up on YOUR WORLD TODAY...

CLANCY: Getting food to the people. This is what a Gaza border crossing once looked like. Up next, expert analysis on what could be a growing food crisis.

(COMMERCIAL BREAK)

VERJEE: Thanks for watching YOUR WORLD TODAY here on CNN International.

CLANCY: We're going to focus now on the Gaza Strip, where families face a growing food aid shortage that the United Nations says is getting to precarious levels.

VERJEE: After Hamas swept to power in January, Israel closed the main crossing point for goods known as the Carni (ph) crossing. Palestinians declined an Israeli offer to reroute goods. CLANCY: Zain, the United Nations telling us that sugar prices have risen by more than 25 percent. Other officials say that supplies of flour and bread are already close to running out in some cases.

VERJEE: And while most Gazans have stockpiles that could last at least a month, the poorest people will be the hardest hit.

To discuss the mounting pressures as food stocks diminish, let's bring in David Shearer. He's the head of the U.N. Office of Humanitarian Affairs for Gaza and the West Bank. And he joins us now from Jerusalem.

Thanks for being with us.

DAVID SHEARER, U.N. HUMANITARIAN AFFAIRS COORD.: Thank you.

VERJEE: How soon could food just run out?

SHEARER: Well, right at the moment, we have a situation where the warehouses are essentially empty. The four mills that grind the wheat into flour in Gaza are no longer operating because they simply don't have anything. And the World Food Program's food stocks are also down.

So right as you said at the beginning of your story, I mean, people are used to shortages and have, to some degree, stockpiled. But there's virtually no reserves left. And it's gone from a 30 to 60-day surplus inside of Gaza to practicality nothing.

VERJEE: How many households in Gaza have stockpiles that, as we mentioned, can last them a month or so? How many don't?

SHEARER: Well, it's impossible to make that sort of -- really that assessment. But what we can say is that about 70 percent of Gazan -- Gazan people live below the poverty line. So they're in a precarious situation from the beginning.

Now, fortunately, some aid shipments to those most vulnerable went out in the last month. So there's -- they're probably living on some of those stocks. But getting a little further down the road, we're really worried if the Carni (ph) crossing doesn't open that we're going to have severe shortages and we're going to see that in the people on the streets.

VERJEE: Israel said that it's closed the Carni (ph) crossing for security reasons, enhanced terrorists threats, they say. And the Israeli army is also saying that, look, we offered to re-route some of the food aid through a different crossing, and it's the Palestinians that turned it down.

What can you tell us about that?

SHEARER: Well, this is a dispute that's been going on between -- between Palestinians and Israelis. And we haven't really been involved in that. What I can say is that, on the -- that Carni (ph) is the principal crossing point between both sides. And so it's not only for imports coming in. It's also for exports going out. And it's got all the machinery, the logistics and everything, set up to do that.

The other two crossing points that are being offered don't have that sort of logistic capacity. But this is something that I think the -- that both sides really need to work out together. And it needs to be done -- done quickly, because the people there, as I say, are going to be facing shortages otherwise.

VERJEE: Is it because of Israel's closure at Carni (ph) that this is the impact being felt, or are there also other reasons that play into this?

SHEARER: There are other reasons as well. But the main -- the principal thing is, since the middle of January -- and we're now in -- now into March -- the Carni (ph) has only been open for 10 days. So that's a lot of time it's been closed. So that's -- that's the principal problem.

But we're also facing a growing issue that we're very concerned about, which is the ability of the Palestinian Authority to pay its civil servants in the future. The shortage of funding to the Palestinian Authority will mean that many of those civil servants who support a much bigger family may not get their salaries. And if that happens in the months ahead, we're in for a very, very serious situation in Gaza.

VERJEE: Giving us an assessment of the situation and the reality that many Palestinians facing in Gaza this day, David Shearer, the head of the U.N.'s Office for Humanitarian Affairs for Gaza and the West Bank, speaking to us from Jerusalem.

SHEARER: Thank you.

VERJEE: Thank you -- Jim.

CLANCY: We're going to take a short break here.

But coming up on YOUR WORLD TODAY...

VERJEE: Looking for inside information from a company known for keeping its affairs to itself.

CLANCY: What will Google tell Wall Street analysts? Ooh, big mystery. And you can't Google this one.

Stay with us.

(COMMERCIAL BREAK)

CAROL LIN, CNN ANCHOR: Hello, everyone. I'm Carol Lin, at the CNN Center in Atlanta.

More of YOUR WORLD TODAY in just a few minutes. But first, a check on the stories making headlines in the United States.

And right now we're following a developing story out of Beverly Hills, California. Police in that city say the city hall building has been evacuated due to a suspicious package.

With me on the telephone is Lieutenant Mitch McCann with the Beverly Hills Police Department. He's on the scene right there.

Lieutenant, can you tell me, what is the latest. Is this a bomb?

LT. MITCH MCCANN, BEVERLY HILLS POLICE DEPT.: Yes, good morning, Carol.

At this time, it's strictly a suspicious package only. We have the bomb squad, it's on scene. And we hope to determine in the next 15 or 20 minutes or so, to verify that it is not anything to worry about.

But once again, just to be cautious and to be safe, we went ahead and cleared the area so that it is safe should it turn out to be something dangerous. But at this time it's strictly -- we're doing this as an abundance of caution.

So the bomb squad is here. They're going to take a look at the package. And we should know shortly whether or not it's anything we need to be concerned with.

LIN: All right. Any of the surrounding area evacuated?

MCCANN: No, just city -- the city hall complex and the area of where the package was.

LIN: So how many people is that?

MCCANN: There's a few hundred people, employees that are affected right now.

LIN: Does it look like a shopping package, a box?

MCCANN: Right now, I'm not at liberty to say due to the fact that there will be an investigation. So I don't want to really give up too many details at this point.

LIN: So how is the bomb squad going to approach the package?

MCCANN: I imagine they'll use one of their remote devices that go ahead and approach it and verify whether in fact there's anything to worry about.

LIN: Do you know when that's going to happen?

MCCANN: Probably here in the next five to 10 minutes.

LIN: All right. Keep us posted, Lieutenant. Good luck.

MCCANN: OK. Thank you, Carol. Bye-bye. LIN: In the meantime, a sentencing area is under way for Charles Cullen, a man who's been called New Jersey deadliest serial killer. The former nurse killed 22 patients in New Jersey alone. Their relatives have been waiting more than two years to confront this man.

(BEGIN VIDEO CLIP)

DELORES STASIENKO, RELATIVE OF VICTIM: With absolute horror, we must profess that nothing can ever make our family whole or satisfied. The monster who played god can justify his actions. Sometimes he probably believed he was an angel of mercy.

Let us correct him. He was a demon from the lowest depths of hell.

EMILY STOEKER, DAUGHTER OF VICTIM: Mr. Cullen robbed my child of her grandmother's unconditional love and kindness. My child has grown up hearing about the cruel way in which her Grandma Po (ph) was killed. Her family has become bitterly splintered. Our friends and associates suddenly didn't know how to relate to us since we had been victimized by a serial killer.

(END VIDEO CLIP)

LIN: Cullen is expected to be sentenced to life in prison. That could come at any moment now. He also faces sentencing for seven patient deaths in the state of Pennsylvania.

Now, two days after Mardi Gras, New Orleans is back to reality. The grim task of retrieving bodies left behind by Hurricane Katrina resumes in the city's Lower Ninth Ward. The area was devastated when the levees broke, flooding streets and homes and trapping people under water. Cadaver-sniffing dogs are working alongside firefighters today searching for the remains in that debris.

Meanwhile, demolition crews begin to work today in the Lower Ninth Ward.

Now, across Oklahoma, crews have reigned in overnight wildfires that raced across some 8,000 acres of grassland. As many as 40 homes are destroyed and at least seven firefighters have been injured.

In Duncan, about 80 miles southwest of Oklahoma City, a suspected arsonist is in custody. A second person is being sought.

Temperatures are still pretty dry out there. Or actually, conditions are pretty dry and temperatures may be on the high side.

Jacqui Jeras checking in.

(WEATHER REPORT)

LIN: Well, call it the NASCAR of snowboard. It's the Snowboard Cross, and an American is the best at it. Olympic gold medal winner Seth Wescott is live on "LIVE FROM" at the top of the hour.

Meantime, YOUR WORLD TODAY continues after a quick break.

(COMMERCIAL BREAK)

CLANCY: Welcome back, everyone. This is YOUR WORLD TODAY on CNN International. I'm Jim Clancy.

VERJEE: And I'm Zain Verjee. Here are some of the top stories we're following.

The United States and India signed a landmark nuclear energy agreement on President Bush's first full day in New Delhi. The deal gives India access to U.S. nuclear technology and fuel. In return, India would separate its civilian and military nuclear programs, and open the civilian facilities up to international inspect. The deal still needs U.S. congressional approval.

CLANCY: Well, just as the U.S. president is getting ready to visit neighboring Pakistan, two explosions there rocked the city of Karachi, killing at least four people, one of them a U.S. diplomat. These blasts happened very close to the U.S. Consulate. The suicide bomber attacked the car of the U.S. diplomat directly as his car approached the facility, blowing it over a nearby embassy wall.

VERJEE: More than 20 people have been killed in the latest wave of violence in Iraq. A bomb killed four people in Shia neighborhood in Baghdad. Earlier, gunmen attacked a checkpoint, killing 10 Iraqi security forces.

Meanwhile, Prime Minister Ibrahim al-Jaafari canceled a meeting with top politicians. There's talk that Kurdish, Sunni and secular leaders are weighing an option to form a new political block against the country's Shia-led coalition.

CLANCY: The controversy over allowing Dubai Ports World, a UAE company, to manage six major U.S. seaports, far from over. Despite a 45-day delay on this agreement, that would allow time for the Congress and others to look into the security concerns, both the House and the Senate are holding meetings on the subject.

To be specific, there are four different hearings alone on this. They come as a Republican senator claimed the Bush administration approved this deal, without really investigating whether Dubai Ports World had any ties to terrorism.

VERJEE: In a new and potentially significant development, Dubai Ports World is getting an endorsement from what may be unlikely source.

CNN's Wolf Blitzer joins us now from Washington with more details -- Wolf.

BLITZER: Thanks very much, Zain.

CNN has learned the chairman of the board of Israel's largest shipping line is strongly endorsing this takeover of six major U.S. ports by Dubai Ports World. In a letter to Democratic Senator Hillary Clinton of New York, Idan Ofer, the chairman of Zim Integrated Shipping Services Limited, says he wants to put his support for the deal on the record.

He says Zim has been pleased to have D.P. World, in his words, "as our business partner, supporting our operations by providing services at key marine terminals, included in the United Arab Emirates."

He goes on to write this -- and let me read it specifically from his letter -- "As an Israeli company, security is of the utmost importance to us, and we require rigorous security measures from terminal operators in every country in which we operate, but especially in Arab countries, and we are very comfortable calling at D.P. World's Dubai ports. During our long association with D.P. World, we have not experienced a single security issue in these ports, or in any of the terminals operated by D.P. World, and have received exemplary service that enhances our efficiency and the smooth running of our operations."

He goes on to say, "D.P. World has been an industry leader with regard to security and works closely with us on an ongoing basis to maintain the highest security standards in all its terminals around the world."

He adds, "We are proud to be associated with D.P. World and look forward to working with them into the future." He signs it, "Yours truly, Idan Ofer."

After I received a copy of this letter, I called Mr. Ofer in Tel Aviv earlier today. He confirmed its authenticity, and explained his motivation in sending the letter to Senator Clinton. He says, by the way, he's also planning on writing a similar letter to Senator Chuck Schumer, also from New York.

He was very anxious for both of them, both strong critics of this deal, to know of Zim's longstanding relationship with Dubai Ports World. Mr. Ofer also said -- and let me give you a few more quotes from the brief interview we had. He said, "these are first-class people," referring to Dubai Ports World. "They are excellent. They are very good people to deal with."

He says he's had a very good personal relationship with the top executives there. "I can't quite understand this upheaval in the U.S.," he adds, "at the end of the day, security and anti-terrorism are in the hands of Homeland Security and the security services."

In short, Zain, a strong vote of confidence for Dubai Ports World from Israel's largest shipping line.

VERJEE: Also revealing, Wolf, that Israel's doing business with a company and a country that doesn't recognize Israel.

BLITZER: Yes, this is not necessarily a closely-guarded secret. Israel has diplomatic relations with only two Arab countries: Egypt and Jordan, formal diplomatic ties, commercial ties as well. But it's had on again, off again commercial relations with several Arab countries, including Tunisia and Morocco, Qatar, Bahrain, United Arab Emirates, clearly, as exemplified by this letter from the chairman of the board of Zim.

So it's one of these things that there's a technical boycott, economic boycotted place against Israel, but a lot of the Arab countries really don't participate in it.

VERJEE: Wolf Blitzer reporting to us from Washington, D.C. Don't forget, you can always catch Wolf's program, "THE SITUATION ROOM," between 4:00 and 6:00 and 7:00 and 8:00 on CNN.

Thanks, Wolf.

BLITZER: Thanks.

CLANCY: Well, meantime, in London -- we're talking about Dubai Ports World. The English High Court made a ruling on the takeover of P&O by that company. An American company which loads and unloads ships challenged the move in a British Court. Paula Newton following the developments live from London for us.

Paula, how significant?

PAULA NEWTON, CNN CORRESPONDENT: Well, it isn't as significant as one might think in the sense that yes, there was a challenge here at the High Court. You know, normally, Jim, what would happen here is the High Court would really be rubber-stamping a takeover like this.

Two independent shareholders and this company in Miami, Eller & Company, came up with some objections to this being rubber-stamped. It was a three-hour ruling, but the judge at the end said, yes, the takeover can go through, with one caveat. They have been given leave to appeal at the court of appeal until 3:00 p.m. tomorrow.

But if they're not successful, Jim, what that means is by late tomorrow afternoon, here in London, as far as the British courts are concerned, the takeover of P&O is complete, and this is a done deal.

There was a lot of relief in the court courtroom today with P&O, and they will continue to go through all of the steps and procedures that they need to, to make sure that the P&O takeover goes through.

But at the same point in time here, they're telling me that all of this is going on, regardless of the fact that there's 45-day review pending in the United States -- Jim.

CLANCY: All right. Our thanks to you there for covering that for us. The latest on that case coming to us from London -- Zain.

VERJEE: Jim, two men and a woman have been remanded in custody in connection with the biggest cash robbery in British history. They are the first to be charged in connection with the raid on a security depot in southern England last week. The thieves made off with some $93 million U.S. British police say that this inquiry could last for years as authorities search for other suspects and all of the stolen money.

CLANCY: Coming up right ahead on YOUR WORLD TODAY ...

VERJEE: ... a profile of the Palestinian prime minister-elect. We're going to hear what Ismail Haniyeh plans for the future. Stay with us.

(COMMERCIAL BREAK)

CLANCY: To our viewers in United States and around the world, welcome back.

VERJEE: To stabilize the situation in the Palestinian territories, the European Union's announced emergency aid for the caretaker government. But it's uncertain what is really going to happen once Hamas leader Ismail Haniyeh takes office.

John Vause has been spending some time with him. John's also been talking to his neighbors and critics.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): This is the man Israel want wants the world to ignore, the leader of Hamas in Gaza and soon to be the next prime minister of the Palestinian Authority.

By Hamas standards, Ismail Haniyeh is considered a pragmatist. He's softly spoken, with a wide smile, and seen to be more open than others within Hamas to talk with Israel.

"If they offer us something, we will study it," he told me. "We're not against Jews, because they're Jews, but we said it's an occupied land. Our rights were aggressively taken away from us."

But to Israel, he's a terrorist, a leader of a terrorist organization responsible for almost 60 suicide bombings over the last five years.

Danny Yatom, former head of the Mossad, Israel's secret service, says Haniyeh was intimately involved in planning and ordering attacks on Israelis.

DANNY YATOM, FMR. MOSSAD CHIEF: Every attack. Remember that through many years, Ismail Haniyeh was the aid of Ahmed Yassin, meaning that he was one of the few in the inner circle that decided upon every terror attack that was executed.

VAUSE: It's a charge Haniyeh denies.

YATOM: "The political wing and the military wing are separate. Israel always tries to market these concepts to try and justify what they're doing against our leadership," he says. But he was a close confidant to Ahmed Yassin, the wheelchair- bound founder and spiritual leader of Hamas, who was killed by an Israeli airstrike two years ago. Haniyeh, too, could have been on the Israeli list for assassination, but was saved by last year's cease- fire.

EYAD SARRAJ, PALESTINIAN ANALYST: He was influenced strongly by the ideological themes of Ahmed Yassin, and his relationship with Ahmed Yassin has given him also a kind of power.

VAUSE: Haniyeh has also won over many with his humble lifestyle. Born in Gaza's Shati refugee camp. It's also known as simply "Beach Camp." And here, to this day, he lives in three-story home built next to the house owned by his father, a refugee family who like so many others survived on a monthly handout from the United Nations. And the man who will be prime minister drives a small old Mazda sedan.

SARRAJ: When you compare them to some of the leaders of the Palestinian Authority, who were really so arrogant, and even shameless in showing their wealth and power to people. And that has really contributed to the popularity and the victory in the voting for Hamas.

(on camera): For many of 80,000 Palestinians who live here in Beach Camp, Ismail Haniyeh's rise from refugee to prime minister is about a lot more than just politics. For them, it's a rare story of local boy made good.

(voice-over): And Haniyeh Faci (ph) is Ismail Haniyeh's neighbor. She remembers him as a little boy, and says he's an example that any Palestinian can now grow up to one day be prime minister.

"He's an excellent neighbor. He grew up here without kids," she told me. "He's highly-respected, praised often. He has good manners."

And Haniyeh plans to continue to live in his home.

"We have a proverb in Arabic," he told me, "the best you can have is a house by the sea."

John Vause, CN, Shati refugee camp, Gaza.

(END VIDEOTAPE)

CLANCY: Want to take a short break, but coming up on YOUR WORLD TODAY, a closer look at the drought that's devastating East Africa.

VERJEE: After two years, the situation grows more desperate as millions of people and their way of life is at risk.

(COMMERCIAL BREAK)

VERJEE: It's dustier and drier than ever in Kenya. The rains haven't come, and the roads in the rural areas are just littered with animal carcasses. Most Kenyans, as you know, Jim, rely on livestock for their survival. CLANCY: Well, you lived there, and you know. And experts telling us now that this is the worst drought to ever hit the region. Millions of people are at risk, especially children.

VERJEE: ITN's Neil Connery reports now from the region.

This warning, though, there are pictures in this report that you may disturbing.

(BEGIN VIDEOTAPE)

NEIL CONNERY, ITN REPORTER (voice-over): Under a blistering African sun, life has all but evaporated, the rotted carcasses testament to the worst drought in living history. Now the most vulnerable are at risk.

At Wajir Hospital, growing numbers of severely malnourished children arrive every day. We found many waiting outside because there's no more room. It's 40 degrees Celsius.

Inside, we discovered 4-year-old Rubely (ph) battling to live. His grandmother told me she's done everything she could. "We lost all our cattle. Everything has gone. Now our children are dying."

Food aid is getting to many of those in need, but with the situation deteriorating quickly, it's clear more families need support. Tensions are running high in the fight for survive.

Aid agencies say communities can only keep going with outside help.

YUSUF IBRAHIM, OXFAM: It is between life and death for these people. If they will not get this food, then certainly, it will be a process of slow death for them because they have lost all their animals.

CONNERY: We joined Abdu (ph) and his family, who've walked six miles to fill up at a water tanker. He tells me they've lost all their animals and don't know how they'll cope. He says that without this water, he and his family couldn't survive here.

While Abdu fills up, others are so desperate for water, they try and catch every last drop. People here have only just started to receive these tanker visits.

As more wells dry up, the nearest water is over 20 miles away. In the searing heat, carrying the four water cans home is exhausting, so now many are choosing to move.

(on camera): Such is the severity of this drought that these people have been forced from where they used to live, because their wells have simply dried up. They're now trying to survive on food handouts and what little water they can find.

(voice-over): Before we left, I headed back to Wajir Hospital to check on the Rubely. His condition has worsened dramatically. His grandmother tries to close his eyes. She says she longs for him to have the peace that only death can bring. One hour after we left, Rubely died.

Neil Connery, ITV News, Wajir, Kenya.

(END VIDEOTAPE)

(WEATHER REPORT)

VERJEE: Today's inbox has to do with the nuclear agreement reached between the United States and India.

We asked you this question: Is the U.S./India nuclear deal undermining the nonproliferation treaty, the nuclear treaty that bans the spread of nuclear arms?

VERJEE: Memom writes: "Absolutely. It's another example of double standards. It seems international treaties and laws no longer have any validity. Instead, what's in the best interest of the United States is the law, and the world is expected to comply with it."

CLANCY: Phani writes: "No. By bringing India onto the international stage, the U.S. is only making the world a better and safe place."

VERJEE: Sunil writes in from Alabama: "India has been a responsible nuclear power over the past few decades, has one of the fastest growing economies and also a significant partner in world peace. This deal is in perfect harmony with India's ambitions for its own security and its future growth."

CLANCY: Betty Lauer (ph) writes this from Wisconsin: "In every deal that Bush negotiates, he gives away more of America. Next it will be airlines, highways and everything else that we own."

VERJEE: Thanks for your e-mails. It's always good to hear from you. Ywt@CNN.com. Quick reminder for you, always go to our Web site for more on a lot of the news stories that we show you here on CNN.

CLANCY: The address is CNN.com/international. Depending on what country you live in, you can log on to watch a selection of free video on your desktop.

VERJEE: Free. Plus, you can subscribe to our new pipeline broadband service, as well. You can view a choice of live news events and browse some of our video archives as well.

CLANCY: All right, before we go to break here, I think, you know, it's noteworthy that in our question of day, it seemed that really, viewers were divided along one line. The Indian viewers were really in favor of the deal. Non-Indian viewers were really opposed to it.

VERJEE: Of course, because they stand to benefit so much. Well, "LIVE FROM" is next for our viewers in the United States.

CLANCY: And for the rest of us, stay tuned. There is more of YOUR WORLD TODAY straight ahead.

(COMMERCIAL BREAK)

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