Return to Transcripts main page

Your World Today

Sarkozy's Challenge; Blackwater Guilty; Violence in Gaza; Nuclear Official Charged; Beauty Parlor Talk; Yahoo! In China

Aired November 14, 2007 - 12:00   ET

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


ISHA SESAY, CNNI ANCHOR: Travel chaos, (INAUDIBLE), walk, bike or stay at home as railway unions strike against economic reforms.
JIM CLANCY, CNNI ANCHOR: A battered image, Yahoo settles a lawsuit that highlights an ethical dilemma for internet companies operating in China.

SESAY: No gracias, the New York governor backs down on plans to give driver's licenses to illegal immigrants.

CLANCY: And it's not your average beauty salon. Clients at this parlor in Cuba get haircuts, sex education and a condom to take home.

It is 6:00 p.m. right now in Paris, it is noon in New York. Hello and welcome everyone to our report seen around the globe. I'm Jim Clancy.

SESAY: I'm Isha Sesay. From Havana to Beijing, wherever you're watching, this is YOUR WORLD TODAY.

We'll have all those stories for you in just a moment but first so far there are no reports or injuries from a strong earthquake that has jolted northern Chile. The 7.7 magnitude quake was centered near (INAUDIBLE), Chile, that's about 1,300 kilometers from Santiago. The quake was felt in the capital as well as in Peru and Bolivia. A tsunami warning was issued for the south pacific coast after the quake hit, but was cancelled within an hour. Police (INAUDIBLE) joins us now on the phone from Santiago. Amaro, just give us a sense of what you're hearing about the situation in those areas, those towns, cities, closest to the epicenter.

AMARO GOMEZ PABLOS: Well, all the information we have gathered is so far only preliminary. What I can tell you is that the quake was 50 seconds long and took many by surprise as they were getting ready to have lunch at 12:40 noon local time. People have been evacuated from hospitals and schools as a precautionary measure after the northern cities of Antofagasta and Talama(ph) were hit by the 7.7 earthquake on the Richter scale. There are no fatalities, as you well said, to regret and no buildings have collapsed, but local authorities are examining any structural damage that might pose a threat. And the fear of a tsunami has been absolutely discarded. The government spokesperson in Santiago, the capital city, which is about 1,300 kilometers away from the epicenter has made a series of appeals to remain calm. Of course, in the vivid memory of many of the people in those northern cities and northern towns, is the memory of the earthquake in neighboring Peru that cost the lives of over 400 people just last August.

SESAY: And Amaro, just give us a sense of the landscape, the area we're talking about, the population of these areas, Antofagasta and Kalama. We're now looking at pictures coming to us from Global Vision TV for those of you who are just joining us, of the situation there in Chile.

PABLOS: Antofagasta, Kalama, they have about, together, those cities, a million people in terms of their population. There are also, important mining towns nearby. Also, the area that has been hit but to a lesser degree is Arica(ph). Now this is rugged terrain. You have the arid areas of northern Chile, desert, that's the sort of landscape that we are taking a look at. And the local authorities will be having access to those more remote areas in the hours to come. That's when we will finally have a clearer picture of what's happened with this earthquake. But so far at least the authorities here, both local and central authorities, seem to have good news thus far.

SESAY: All right, that is good news. Amaro Gomez Pablo, thank you so much for joining us. Many thanks.

CLANCY: All right, let's take you now across to France where it's starting to look like a clash between an irresistible force and an immovable object, striking railway unions are in a showdown with President Nicolas Sarkozy and the result, bad news for commuters. Jim Bitterman is watching developments in the nationwide transit strike, it's coming to the end of the commute hour in the evening and he's joining us from the city of lights. Hello Jim.

JIM BITTERMAN, SENIOR INTERNATIONAL CORRESPONDENT: Hi Jim. There are a lot of lights tonight but if you see them they are out on the periphery of the other highways going out of Paris as commuters try to get back home again. A lot of people drove into Paris today and that caused massive confusion during the rush hour this morning and I'm sure is out there causing massive confusion tonight as commuters try to get back out of the city. That's because the public transit system pretty much shut down today. There were about 15 percent of the normal metro trains, that's the subway trains, were running. The long distance trains were pretty deeply affected, about 90 out of the normal 700 high speed trains were running. So a lot of damage to the normal commuting network. It's a network that people depend on and they were, I think, prepared for it in some ways. Some people stayed at home. If it goes on for a few more days, it looks like it's likely to continue into tomorrow, two unions have already voted to continue the strike into tomorrow. It's going to cause further hardships. People can get by with one day by staying home, taking a day off or working from home but two days, three days, four days, something like that is a little bit more unbearable and maybe more difficult for businesses particularly that depend on their employees to get in to work. Jim?

CLANCY: President Sarkozy has said, you know, he wants to reform labor in his country, and it would seem that many in the French public agree with him but can he stand tough against the unions?

BITTERMAN: Well, that's the question everybody is watching to see. In fact, he said it again in Strasbourg, he said I will carry out these reforms right to the end, nothing will put me off my goal. And his labor minister said just about exactly the same thing in parliament, in the national assembly this afternoon. So, I think the government is stealing itself for a fight with the unions. Having said that, one of the things that was absolutely remarked on in the high degree this afternoon was that these union demonstrations were nowhere near the size that they normally are. The rank and file were not out on the streets. And also some statistics from the national railroad system about the number of strikers who actually went on strike and it was down considerably, about 20 percent or so from the people who went on strike just a month ago. So, there may be some decline in union support here or at least some feeling that maybe the unions are aware of the fact that they are going against public opinion, 55 percent of the French say that these reforms should take place.

CLANCY: All right, Jim Bitterman, there live from Paris where it's still good to own a bicycle. Isha?

SESAY: Now U.S. President George W. Bush says his new attorney general knows what it takes to fight the war on terror. He attended Michael Mukasey's ceremonial swearing in at the White House a short time ago. Mr. Bush says the former federal judge understands how to keep Americans safe, while at the same time protecting their liberties.

Across the Atlantic, shopping malls, airports and train stations in Britain will soon get better defenses against possible terror attacks. Prime Minister Gordon Brown says these and other public buildings could be vulnerable to car bombs and he says the government has a plan to make them safer. Paula Newton joins us now from London with details. Paula, what exactly did the prime minister say in this wide-ranging speech?

PAULA NEWTON, CNNI CORRESPONDENT: Isha, it is what you call a wide-ranging speech, these are sweeping measures. Essentially though people here in Britain are going to see security measures on so-called soft targets, theaters, shopping malls, schools even, where they are going to try and at least reduce the risk. Everyone is fairly realistic here. They know that the risk cannot be eliminated. As well, Gordon Brown knows that he has to try and do something to really reduce that risk of soft targets. It's talked about very often here, especially since the events of this past summer when car bombs were laid here in Central London and when we had the attack in Glasgow. If you listen to Gordon Brown very carefully what he's talking about is actually something that's quite radical in terms of dealing with places where the public goes, right now quite freely.

(BEGIN VIDEO CLIP)

GORDON BROWN, BRITISH PRIME MINISTER: Companies that are responsible for (INAUDIBLE) places will now be given detailed and updated advice on how they can improve their resilience against attack, both by better physical protection and greater vigilance in identifying suspicious behavior. New guidance will also be sent to thousands of theaters, restaurants, cinemas, hotels, sporting venues and commercial centers and all hospitals, schools and places of worship, and this will include advice on training staff to be more vigilant.

(END OF VIDEO CLIP)

NEWTON: What that will mean will be places that you will have to go into, you may have random spot checks, checks on baggage, even for rail transport that we really haven't seen here before. Equally as important, he announced a raft of measures to win over hearts and minds. He also announced certain measures to be able to look at things like the internet and crack down on technology companies. The government here feels gives extremists a free ride in terms of publishing that propaganda on the internet. Bottom line here, the task at hand is quite large and beyond actually trying to put the public at ease, they also don't want to panic the public. It is going to be a very tough balance to strike here, and many other countries will be looking on. The reason is that what is going on here in Britain is there at the front line of this campaign against terror. Many people will be looking here to Britain to see what is working, what is not, what has been effective.

SESAY: All right, Paula Newton there in London. Many thanks.

SESAY: Pakistan's President Pervez Musharraf responding now to demands from a former prime minister that he resign. In interviews and editorials over the past few days, Benazir Bhutto called on Mr. Musharraf to immediately step down. She says continued arrests of those opposed to his emergency rule convinced her, the president should no longer remain in power. Well now, in an interview with Sky News, Mr. Musharraf indicates he just might resign but only under certain conditions.

(BEGIN VIDEO CLIP)

GENERAL PERVEZ MUSHARRAF, PAKISTAN PRESIDENT: Whether I should stay at all, that option is available to me. But should it be given up now and we will have better Pakistan, a stabiler Pakistan and we can have very good elections without me, very good. Maybe I take that decision.

(END OF VIDEO CLIP)

SESAY: The crackdown on opposition leaders in Pakistan is moving ahead. Cricket star Imran Khan was arrested Wednesday after coming out of hiding to join a student demonstration against the ongoing state of emergency. (INAUDIBLE) from sports (INAUDIBLE) has taken up an active role in Pakistani politics. Benazir Bhutto meanwhile remains under house arrest and lawyers stage another protest in the streets of the capital city Islamabad. Attorneys have been at the vanguard of the protests and many have been arrested.

CLANCY: All right, just ahead here on YOUR WORLD TODAY, the U.S. immigration debate getting a bit ugly.

GORANI: Yes, very. Did one U.S. Republican presidential candidate go too far with this campaign ad? We'll tell you what's making so many people so angry. CLANCY: Yasser Arafat tried to bring Palestinians together but attempts to mark the third anniversary of his death are only driving them further apart. We're going to talk to the Palestinian representative in the U.S.

(COMMERCIAL BREAK)

CLANCY: Welcome back to CNN INTERNATIONAL and YOUR WORLD TODAY.

A special welcome to our viewers joining us right here in the United States this hour.

Now we're going to turn to one of the most hotly contested issues in the United States, an issue that ask the politicians could make or break your career. The issue is illegal immigration, intense public opposition leading New York's governor to abandon his proposal to give drivers' licenses to undocumented immigrants. Eliot Spitzer said it was all about security, trying to keep track of people, trying to keep New York's roads safe. Opponents said illegal immigrants shouldn't have the privilege of having a driver's license. And they said the plan could've allow would-be terrorists to get valid identification. Polls showing 70 percent of New Yorkers oppose Governor Spitzer's plan.

(BEGIN VIDEO CLIP)

ELIOT SPITZER, NEW YORK GOVERNOR: I continue to believe that my proposal would have improved an unsatisfactory situation, but I have listened to the legitimate concerns of the public and those who would be affected by my proposal, and have concluded that pushing forward unilaterally in the face of such strong opposition would be counterproductive.

(END OF VIDEO CLIP)

SESAY: Now, a long shot candidate for the White House is playing the immigration card in a controversial new TV ad. Critics say Republican representative Tom Tancredo's commercial is intended to shock the American audience and create a climate of fear, but as Brian Todd reports, Tancredo's campaign denies taking up scare tactics.

(BEGIN VIDEOTAPE)

TV AD: There are consequences to open borders beyond the 20 million aliens who have come to take our jobs. Islamic terrorists now freely roam U.S. soil. Jihadists who walk with hate, here to do as they have in London, Spain, Russia. The price we pay for spineless politicians who refuse to defend our borders against those who come to kill.

BRIAN TODD, CNN CORRESPONDENT (voice-over): The spot is reminiscent of the infamous daisy ad that President Lyndon Johnson's campaign ran during the 1964 election.

And of a web ad last year by the Republican Party. But Tom Tancredo's campaign says the commercial doesn't cross the line and the candidate denies using scare tactics.

TOM TANCREDO, U.S. HOUSE REPUBLICAN: I am using reality. I am asking all of the candidates who are involved in this race, anybody who thinks they should be president of the United States had better pay attention to this.

TODD: This isn't the first time the congressman from Colorado has caused a stir. Back in August he said that bombing Muslim holy sites would serve as a good deterrent to prevent Islamic terrorists from attacking the U.S. And in May, Tancredo was asked how he would interrogate terrorists. He said he thought the hard-nosed techniques portrayed on the television show "24" were the way to go. The new ad is scheduled to start running this week in Iowa, the state that kicks off the presidential primary season. Tancredo's made battling illegal immigration his top issue, but he's not well-known and he's in the low single digits in the polls. This commercial may help him grab more recognition. Brian Todd, CNN, Washington.

(END OF VIDEOTAPE)

CLANCY: The U.S., of course, has already fielded calls to put up a fence or a wall along Mexico's border. Well now, maybe a moat? Immigration concerns prompting a proposal to make one of America's most prominent rivers that much bigger. Mayors in Texas want to widen and deepen the Rio Grande along the Mexican border. They say a larger waterway would make it tougher for illegal immigrants to enter the U.S. The call comes in response to federal plans for a fence stretching more than 1,100 kilometers along the Mexican frontier.

SESAY: Immigration issues are turning out to be a hot button in U.S. politics, but let's turn now to our very own Bill Schneider for more on how it's all playing out. Bill, as we see with that Tancredo ad and with issue in New York with drivers' licenses, it's on the agenda, everyone is talking about it, but is it on the minds of voters as they go to the polls in the next couple of months?

BILL SCHNEIDER, SENIOR POLITICAL ANALYST: It is on voters' minds, I mean look what happened to John McCain in the Republican Party because of his support of comprehensive immigration reform. And now look at Eliot Spitzer, the governor of New York has had to back down. He cites public pressure. The public pressure is there. Immigration is not a fringe issue. It's an issue that a substantial majority of Americans are concerned about, including Democrats and Republicans. But Tom Tancredo is more or less a fringe candidate, he's not doing very well in the Republican Party because he's speaking for a much smaller constituency, that's people who put illegal immigration as the top issue of their concern and the issue that drives their vote rather than Iraq or Iran or health care or the economy. That's a much smaller group.

SESAY: And Bill, let's just be clear. Who is this a bigger issue for, the Republicans or the Democrats?

SCHNEIDER: It's a bigger issue for the Republicans, though Democrats are concerned about it as well. The difference is they don't disagree on the issue. It's not that one party is for illegal immigration, the other party is against it. A lot of Democrats were critical of Eliot Spitzer's plan and he came under a lot of appreciate from his own party to drop the plan. But, Republicans care more. To them it's a bigger driving issue that gets them to come out and vote. So it matters a lot more in the Republican Party than in the Democratic Party. The Democrats are worried that if they support a plan for drivers' licenses for illegal immigrants the Republicans will really hammer them on that issue next year.

SESAY: And Bill all eyes on Nevada tomorrow with that Democratic debate. How high up on the agenda do you see the whole issue of immigration playing? We saw in the last debate what it did to Hillary Clinton.

SCHNEIDER: Well, Democrats don't disagree in any fundamental way on the issue. They're all basically sympathetic to comprehensive immigration reform and a path to citizenship for illegal immigrants who have been in the United States for a period of time and fill certain conditions. The issue is going to be in the debate, however, not because they disagree but because of Hillary Clinton's answer in the last debate which was seen as -- it was, in fact, evasive, waffling, she seemed to take both positions. And it signified a kind of weakness in her approach in politics that she tried to have it both ways. So her opponents have really gone after her on that. I think they are going to try to call on her to straighten this out in the debate.

SESAY: All right, Bill, we'll all be watching. Bill Schneider there, many thanks.

Well, next up in our America Votes 2008 coverage, the CNN Nevada Democratic Presidential Debate, Wolf Blitzer hosts this round of political sparring among Democratic presidential hopefuls. You can see it right here live from Las Vegas, tomorrow, Thursday, at 8:00 p.m. eastern time. For international viewers, that's Friday, November 16th at 01:00 GMT.

CLANCY: All right, a check of our headlines coming up next for viewers in the United States.

SESAY: For everyone else, it's a financial update.

Plus, we will tell you about a beauty salon in Cuba that's offering more than just beauty tips. Jim?

CLANCY: A little bit later, tension in Iran, a political opponent of the Mahmoud Ahmadinejad government charged with passing along confidential information to foreign officials. Word of the details we'll have coming up.

(COMMERCIAL BREAK)

KYRA PHILLIPS, CNN ANCHOR: Hello everyone, I'm Kyra Phillips at the CNN Center in Atlanta. More of YOUR WORLD TODAY in just a few minutes, but first a quick check on stories making the headlines right here in the U.S. Prison hostage crisis now unfolding in Wisconsin. Officials say an inmate at Waupun Correctional Institution is holding a dental technician hostage. Authorities say they're communicating with the inmate and there's been no direct threat made against the prison employee. The facility is now under emergency lockdown.

Before you board that flight, should you be concerned about screeners that may be getting tipped off about security testing? That's what a House committee is trying to find out right now in a hearing happening right now. The question started with an e-mail that surfaced recently, indicated that screeners were given a heads-up about a security test. The e-mail even described what the undercover agents looked like and what screeners should expect. The Transportation Security Administration says it is investigating but insists tipping off screeners is not a widespread problem.

The Blackwater investigation and a new report today, Iraqi civilians were killed without cause. The report from today's "New York Times," well, the paper says the FBI found that 14 of the 17 civilian killings were unjustified. "The Times" says the FBI found no evidence that Blackwater employees were fired on by Iraqi civilians. A Blackwater spokesperson issued a statement saying the company supports stringent accountability. The company says if its found that one person was complacent in the wrongdoing, quote, "We would support accountability in that."

Well, it's official. Late this morning, retired federal Judge Michael Mukasey was formally sworn in as the new attorney general. Mukasey actually took the oath of office last Friday and went right to work, meeting with top Justice Department officials and getting national security briefings. The senate voted 53 to 40 to confirm Mukasey. He replaces Alberto Gonzales who resigned after the scandal over fired prosecutors.

(WEATHER REPORT)

PHILLIPS: A family tragedy for former Supreme Court Justice Sandra Day O'Connor, her husband has Alzheimer's disease. Her son now reveals his father has fallen in love with another woman at his care facility. How common is it and how does the family deal with the situation? Ahead in the NEWSROOM. We're going to talk with a man who saw the same thing happen with his parents.

Meantime, "Your World Today" continues after a quick break. I'm Kyra Phillips, see you in about half an hour.

(COMMERCIAL BREAK)

JIM CLANCY, CNN ANCHOR: Hello and welcome back to our viewers joining us from around the globe, including in the United States. This is YOUR WORLD TODAY. I'm Jim Clancy.

ISHA SESAY, CNN ANCHOR: And I'm Isha Sesay. Here are some of the top stories we're following for you.

A strong earthquake jolted northern Chile, causing terrified residents to flea into the street. It was centered near the port city of Antofagasta. The quake was also felt in the capital, Santiago, as well as in Peru and Bolivia.

CLANCY: Trains and buses out of service. Traffic jams all across France. Striking transit workers are protesting the French president's proposed pension changes. It's a major test of President Sarkozy's effort to change the French economic system.

SESAY: Well, he's bold, he's dashing, he's pro business and, yes, pro American. The French president is a lot of things, some of them very controversial in France. President Sarkozy swept into power with what he says was a mandate to shake things up. Now that more than half the country is walking, though, will he be able to keep his promises? European political editor Robin Oakley looks at the man at the center of the storm.

(BEGIN VIDEOTAPE)

ROBIN OAKLEY, CNN CORRESPONDENT, (voice over): Is Nicolas Sarkozy the knight on the white charger who's come to rescue France from economic and political stagnation or is it all a load of old (ph) bull? France's new president has grabbed one headline after another in his first few months in office. He helped Angela Merkel revive the E.U. constitution. He turned up at a European finance minister's meeting to defend France's reputation. He appointed socialists from the opposition to join his government. His now ex-wife, Cecilia, and he helped to get Bulgarian nurses released from Libya and to win contracts there for French firms. And Sarkozy drew round after round of applause from the U.S. Congress with a speech designed to re-unite two nations after the frosty Chirac years.

NICOLAS SARKOZY, FRENCH PRESIDENT, (through translator): I want to be your friend, your ally, your partner.

OAKLEY: There's been the wrong kind of publicity, too. The divorce from Cecilia and the walkout when a TV interviewer asked him about it. And the curious appearance of a tea-totaled (ph) president at a G-8 news conference sounding decidedly wobbly.

SARKOZY: Would you prefer me to answer questions? Well, are there any questions?

OAKLEY: The French aren't used to a president who goes jogging, who doesn't drink and who even (INAUDIBLE) worked during the sacred holiday month of August. But he's rapidly become the best known politician in Europe.

ROBIN SHEPHERD, CHATHAM HOUSE: Yes, I don't think, you know, you can really see many competitors. Gordon Brown is notoriously dour and standoff-ish. Angela Merkel is very dramatic and, you know, won't sort of stand up and make sort of bold speeches and jump on the table. But I think Sarkozy is somebody, you know, who's going to be constantly there to provide us with something to talk about.

OAKLEY: Mr. Sarkozy, though, has promised rapture with the past, telling the French to work harder and earn more. And the union's challenge to his plans to trim the generous welfare state is his time of trial. Past French governments have knuckled under to street protests. The abrasive Sarkozy, analysts agree, doesn't have that option.

SHEPHERD: If he falls back completely from his reform program, I don't think that he will ever be able to find the momentum again and I think he knows it.

OAKLEY: Nicolas Sarkozy wants his country to walk tall again internationally. But first he must cure its economic ills. Winning the first battle with organized labor will be crucial.

Robin Oakley, CNN, London.

(END VIDEOTAPE)

CLANCY: Now to Iraq. "The New York Times" reports FBI agents have concluded Blackwater security personnel were not justified in killing at least 14 of those 17 Iraqis killed in a September shooting incident. The newspaper also says the FBI found no evidence that the convoy was ever fired upon by Iraqi civilians. "The Times" reports the FBI investigation indicates the company's employees acted recklessly and violated deadly force rules in effect for security contractors. The newspaper cites unidentified civilian and military officials familiar with the case.

SESAY: Well, we want to get more now on this story and this "New York Times" report. We want to cross and join our Pentagon correspondent, Barbara Starr.

Barbara, what are you hearing in Washington?

BARBARA STARR, CNN CORRESPONDENT: Well, Isha, the news here is not very public about the status of the Blackwater investigation. There is some question about "The New York Times" report, to be very candid, as to whether or not this investigation really is complete. All the indications we see so far is that the investigation does go on.

It is perhaps the case that "The New York Times" story is a preliminary read. In fact, we have spoken to the Blackwater company's official spokeswoman, Anne Tyrell, and she tells us that to the best of the company's knowledge the five Blackwater personnel that are said to be the alleged shooters in this security incident in Baghdad have yet to be directly interviewed by the FBI. She went on to say, "if it is proven that there was wrongdoing, we want that person or persons to be held accountable."

So, by all accounts, the investigation does go on. And sources, including Blackwater and others that we have spoken to, continue to provide an interesting piece of context, if you will. Why are some of these prosecutions or potential prosecutions so tough? Well, the incidents have taken place in Iraq.

Any prosecution might have to be in the United States. Gathering the evidence, reconstructing the crime scene, finding the witnesses who can come forth and testify in any legal proceedings, all very tough issue, as you can imagine, to do at great distances with one of it being in the middle of a war zone. So still a long way to go on this and it remains to be seen how it all sorts out.

Isha.

SESAY: All right. Barbara Starr, Pentagon correspondent there. We must leave it. Many thanks.

CLANCY: We're going to cross over to another area of the Middle East, Palestinian politics. Britain now promising financial help to the Palestinians if there's tangible progress in improving security in the region. Prime Minister Gordon Brown pledging $500 million in assistance. He also called on other European countries and the U.S. to commit financial help for Gaza and the West Bank.

This as tens of thousands of Palestinians marched on the West Bank, calling for unity among the Palestinians themselves. The protests came after a day of violence broke out at a Gaza rally commemorating the third anniversary of the death of the Palestinian Leader Yasser Arafat. At least seven people were killed in clashes between the Hamas and Fatah factions.

It was the worst outbreak of factional violence since Hamas seized control of Gaza last June. Let's get some more on this situation in the Palestinian territories. And for that we turn now to Afif Safieh, the head of the Palestinian Liberation Organization's mission to the United States.

Thanks so much for being with us.

AFIF SAFIEH: Thank you.

CLANCY: How are we supposed to read this divide now between Hamas and Fatah? It's been there. Now it's coming out on the streets in the West Bank.

SAFIEH: Well, I especially believe that it's very regrettable the fracture that has occurred, but I believe that Hamas made the mistake and overplayed its hand in Gaza by taking over militarily. And, by the way, all opinion polls indicate that they have dipped in popularity ratings after the June takeover in Gaza.

What occurred in Gaza two days ago was a unilateral attack against pacifist civilians that were gathering for the third anniversary of Yasser Arafat. I believe, sir, that Hamas won Gaza temporarily but lost the Palestinian people. And we . . .

CLANCY: But, you know, on the other hand, all right, Hamas may have lost some of its support, but has Fatah gained a lot of support? Because Hamas won that election, not because people wanted Hamas, who were fed up with the corruption of Fatah. Has it ever been reformed?

SAFIEH: We are working on that.

CLANCY: Well, how long do you have to work? I mean it's been two years.

SAFIEH: By the way, as you know, sir, unfortunately, corruption is a very democratically shared device across boundaries and I could tell you about Israeli corruption from up downwards. But I am very sad that we have suffered from that phenomenon and we are dealing with that phenomenon.

I believe, sir, today opinion, or ratings give Fatah slightly about 40 percent and Hamas slightly under 20 percent. And that was before the incidents of Gaza 48 hours ago.

But that's not important, sir. Today our Palestinian society is waiting for this international gathering in Anapolis in a matter of two weeks. I hope that history is in the making. I hope that it will rehabilitate the diplomatic avenue. And I hope that it . . .

CLANCY: There's the hopes that it could rehabilitate Fatah, too, and some of the leadership because, after all, it's going to be the very old leadership that's going there. But, you know, the question, what a risk the Palestinians, what a risk Fatah is taking because it would not appear there's going to be any kind of a breakthrough. It will be another failed opportunity, people will say?

SAFIEH: I think (INAUDIBLE). In the coming days we are working to making it a success. We want a diplomatic breakthrough. We are a society that has lived in dispersion and in (INAUDIBLE) for 60 years under military occupation for 40 years. Our society, 80 percent, have known nothing but occupation, occupation, occupation, from womb to tomb, from birth to death. So we want to make Anapolis a success. And I believe we have shared opinion on that with the American administration. I personally believe in the sincerity of President Bush and Dr. Rice and I feel that there is a growing exasperation within the administration for the Israeli reluctance that . . .

CLANCY: Was there something happening in private that we don't see in public? We have all heard Secretary Rice say, the time has come for a Palestinian state. We haven't seen the U.S. even pressuring the Israeli side to take up the substantive issues. They control 80 percent of the water on the West Bank. The subject isn't even going to come up.

SAFIEH: Let me tell you, the Israelis have done their best to benalize (ph) and to trivialize Anapolis before it takes place. But I think they are very badly advised in doing that because they have a window of opportunity, of the entire Arab world offering recognition and normalization if Israel was to abide to international law and withdrawal out of the occupation.

CLANCY: Do you think the U.S. will push?

SAFIEH: I believe that there is a lot of exasperation today among this administration, which was the most friendly towards Israel, vis-a-vis Israeli hesitation and reluctance. And I believe that President Bush is today feeling that Israel is depriving him of the diplomatic success he needs today. CLANCY: The Israeli side, a lot would say justly criticizes the Palestinians, not even implementing the basic security promises that they have made on the West Bank where Fatah's in control. There's no real security.

SAFIEH: Sir, there hasn't been any major military operation in the West Bank.

CLANCY: There hasn't been any strength (ph) against militants?

SAFIEH: No, no. And on the contrary, the Israelis have been misbehaving with their daily incursions in our urban centers. No, sir. I think the world will testify, General Taten (ph) will testify that the Palestinian authorities is serious in re-establishing law and order in the West Bank. It's the Israeli misbehavior. And the Israelis, for example, who are expected (ph) of the evil (ph) of Anapolis to stop settlement (INAUDIBLE) to free massively prisoners to start building the wall. They have done none of that, unfortunately.

CLANCY: We're going to see what comes out of Anapolis. You will be there, I'm sure.

SAFIEH: Yes, I hope history is in the making.

CLANCY: Thank you, SAFIEH: Apeep Sophia, thank you very much for being with us.

SESAY: Jim, coming up, a reversal of fortune.

CLANCY: That's right. He was Iran's top nuclear negotiator under the former president, but now under the new one he's in jail.

(COMMERCIAL BREAK)

CLANCY: Hello, everyone, and welcome back. You're watching YOUR WORLD TODAY right here on CNN International.

SESAY: We're seen live in more than 200 countries and territory across the globe.

Now, espionage charges against a former Iranian nuclear negotiator highlight the tension and uncertainty coming out of Tehran. Hossein Mousavian is charged with passing secrets to the British and other foreigners. Just days ago, he appeared at a speech by a former president that was highly critical of the current president's nuclear policies. Aneesh Raman sorts it all out for us.

(BEGIN VIDEOTAPE)

ANEESH RAMAN, CNN CORRESPONDENT: A traitor within. That's essentially what Iran's government is now calling a former senior nuclear negotiator. His name is Hossein Mousavian and he runs intelligence ministry today, said they had evidence Mousavian has given sensitive information, presumably about the country's nuclear program, to foreign governments. Among them the British government. Now what happens next is Iran's judiciary has to take on this case and determine if there is, in fact, enough evidence. But Mousavian was held earlier this year under similar charges and was later released.

So what is really going on? Mousavian is a close friend of Ayatollah Akbar Rafsanjani, who is a rival to Iran's president, Mahmoud Ahmadinejad. He also served under the reformist president, Mohammad Khatami.

There are two schools of thought. One says that the reformist within Iran, eager for compromise amid the country's nuclear dispute, feel they cannot turn to those within their government and are now looking outside to find a solution. The other thought, though, is that with Iran set to go to the polls early next year to elect a new parliament, and with the hard liners, the leader of which is Ahmadinejad, under threat of losing seats, this is part of a political intimidation to quiet those criticizing the government and to keep opposition at bay.

What we wait for next isn't just what happens in the judiciary, but what happens with the country's supreme leader. He's the be all, end all of all decision making. Does he weigh into this debate? Does he sign with Mousavian or with Iran's president. That will be a key indicator into his ultimate support.

Aneesh Raman, CNN, Cairo.

(END VIDEOTAPE)

CLANCY: We have a chilling story that came to us from Chicago where four transplant recipients contracted AIDS, all from a single organ donor. Doctors now say the organs came from a high-risk donor, their words, who nonetheless had tested negative for HIV. That's the virus, of course, linked to AIDS. The four patients being cared for in three different Chicago hospitals now contracted Hepatis C from the donor as well.

SESAY: Now ask any woman, there's a lot more going on in beauty parlors than haircuts and manicures. We talk about everything there. Everything. And that's why the woman who runs this shop in Havana you're about to see decided it would be the perfect place to talk about something that needs to be talked about, AIDS. Shasta Darlington report.

(BEGIN VIDEOTAPE)

SHASTA DARLINGTON, CNN CORRESPONDENT, (voice over): This woman is getting a quick trim at a hair salon in Havana. Hardly a racy sight. But the clients waiting their turn are in line for more than beauty tips.

"I want to know who's actually using condoms," demands Laticia Santa Cruz (ph).

She runs the Aphrodite beauty parlor. But she's much more than a hairdresser. She's an expert in AIDS prevention. And here the education is hands-on. Housewives practice applying condoms. Instead of fashion magazines, they flip through AIDS pamphlets and watch sex ed videos.

Santa Cruz has been cutting hair for nearly two decades. After a close friend of hers died of AIDS, she also became an activist in the tough Elsaro (ph) neighborhood where she worked. With the help of the state and some U.N. funding, she opened Aphrodite earlier this year, targeting a sector often oblivious to AIDS risk, middle aged, married women.

"Hair dressers are like priests," she says. "People feel comfortable talking to us about more discrete things."

Even philandering husbands, which is why her beauticians have been trained as health counselors.

"What do we talk about," asks this married woman? "Everything. About how to protect ourselves, because that's the one thing I'm not very experienced in."

When HIV first emerged in Cuba, health officials isolated patients in sanatoriums. But that controversial policy was abandoned.

"Over the course of the years, it stopped being a taboo," says the district's chief epidemiologist. "And everyone talks about prevention."

Cuba now has one of the lowest rates of HIV infection in the region. But in working class neighborhoods like Elsaro, a macho culture still prevails.

Aphrodite is one of the few places where married women feel comfortable seeking advice. Of course, many people just come in for the 50 cent haircuts, but they go home with a condom in their hand bag.

Shasta Darlington, CNN, Havana.

(END VIDEOTAPE)

SESAY: Still ahead . . .

CLANCY: A lawsuit that highlights an ethical dilemma for Internet companies who operate in China. We have details straight ahead.

(COMMERCIAL BREAK)

SESAY: Welcome back, everyone.

A settlement between Yahoo! and several Chinese dissidents is highlighting a dilemma for Internet companies doing business in China.

CLANCY: This is a lawsuit that was brought by activists who said Yahoo! gave the Chinese government information that led to their arrests.

SESAY: John Vause has more on the reaction in China.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT, (voice over): From this small, cramped, Beijing apartment for the past nine years, Lee Shaendar (ph) has blogged about official corruption across China.

"They say there is harmful information on my site. And with that one sentence, they can shut me down," he told me.

And by "they" he means his Internet service providers, who are required by law to tell authorities about what's deemed harmful information. And that's a long, long list. And if they don't do it, then they can be fined and shut down by the government.

That's the argument Yahoo! made before Congress, just following local laws when it handed over e-mail details of a Chinese journalist who was later jailed for leaking so-called state secret. For Lee, it was a breach of trust from a western company who many here never expected.

"I used to have a Yahoo! e-mail account, but I don't use it anymore. Neither do a lot of my friends. We feel they can't be trusted."

But Yahoo! is not alone. All western Internet companies have made compromises for access to China's 130 million net users. But activists like Joe Ching (ph) say they no longer believe the Internet will be a force of democratic change.

"When the Internet first started, I was full of hope. Now I'm full of disappointment," he says. "New technology has improved the capability of monitoring."

Yahoo! has now made an out of court settlement with the families of the Chinese dissidents who its claimed were jailed after the Internet giant cooperated with the communist government. But that's unlikely to repair the company's badly damaged reputation.

REBECCA MACKINNON, HONG KONG UNIVERSITY: Yahoo! has been on the cover of two different human rights reports. They've been shamed globally. They've been called to the carpet twice in the U.S. Congress. They've taken a huge hit to their global image.

VAUSE: Part of Yahoo!'s mission statement is to connect people to the world's knowledge. But that, it seems, doesn't apply to China, especially with the communist government here unlikely to loosen its control over the Internet.

John Vause, CNN, Beijing.

(END VIDEOTAPE)

SESAY: Big ethical dilemma there. OK. Now here's a look at something we've never seen before.

CLANCY: I've never seen it before. The first ever image of the earth rising in HD, that's high definition.

SESAY: Look at that. This picture was shot by Japan's Kaguya spacecraft.

CLANCY: It's an unmanned probe that's carrying out the most extension investigation of the moon since the U.S. Apollo missions of the late 1960s and early '70s.

And that's our look at the world today. I'm Jim Clancy.

SESAY: And I'm Isha Sesay. And this is CNN.

(COMMERCIAL BREAK)

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