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Distinguishing Friend from Foe; Unrest in Syria; U.K. Phone Hacking Scandal; Impact of Possible U.S. Government Shutdown; Four Businessmen Including Two British Brothers Arrested in Libya; EU Says Portugal Bailout Could Top $100 Billion; Young People in Ireland and Portugal Moving Away to Find Jobs; Motorcycles Beating Traffic Jam Blues in Jakarta; Addicted to Technology; Parting Shots of Cherry Blossom Season

Aired April 08, 2011 - 16:00   ET



REAR ADM. RUSSELL HARDING, DEPUTY COMMANDER, COMBINED JOINT TASK FORCE: I'm not apologizing. The situation on the ground, as I said, was extremely fluid and remains extremely fluid.


BECKY ANDERSON, HOST: A NATO air strike takes out a rebel convoy in Libya, but no apology from command and control. Well, it's another blow for the opposition, on the run, it seems, from friends as well as foe.

Plus, they signed up to fight for their country, but with a U.S. government shutdown looming, they may be expected to do so unpaid.

And hooked on their phones -- why students just can't give up their gadgets.

Those stories and more this hour, as we connect the world.

Regret, but no apology -- NATO acknowledges a deadly mistake in Libya, saying it's becoming harder and harder to distinguish who's who on the dusty desert battlefield. The deputy commander of the NATO air campaign says it appears two air strikes Thursday may have killed rebels using tanks to fight government forces.

Well, this amateur video is said to show the attack near El Brega, although CNN cannot independently confirm that.

NATO says it wasn't its fault because it had no idea that rebels had started using the same vehicles as Moammar Gadhafi's forces.


HARDING: I'm not apologizing. The situation on the ground, as I said, was extremely fluid and remains extremely fluid. And up until yesterday, we had no information that the TNC (ph) or the opposition forces were using tanks


ANDERSON: Well, sounds like a communications breakdown. But that deputy commander made another very interesting remark, reminding people that NATO's mission is to stop attacks on civilians, not aid and assist the rebels.


HARDING: I have to be frank and say it is not for us, trying to protect civilians, of whatever persuasion, to improve communications with those rebel forces.


ANDERSON: Well, a little later, NATO's secretary-general followed up those remarks, saying NATO might, quote, "strongly regret the loss of life."

Well, thousands of people gathered today in the rebel capital of Benghazi to mourn the opposition fighters killed in those strikes.

Our Ben Wedeman visited a hospital where some of the wounded were taken and found frustrations running high.


BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): A wounded fighter asks after his comrades. "They're fine. They're fine. Every one's fine," he's told.

But they're not.

They were wounded and others killed in what may be the second NATO air strike in less than a week that hit men on the wrong side, killing not just fighters, but a doctor, as well. Saleh Ali Wameh's (ph) death, a harsh blow to colleagues, who, for weeks, have risked their lives up at wildly fluctuating front line. And yet another blow in a war where little seems to be going right for the anti-Gadhafi opposition.

According to eyewitnesses, a plane they believe to be from NATO struck their column halfway between Brega and Ajdabiya.

"We heard a sound like a plane," says fighter Abdel Atif (ph). "We heard them above, far away. Then it came close. Then the tanks went up in a huge explosion." "Then," says Khalid (ph), "they came back and hit again."

Already demoralized by the superior firepower of the Libyan Army, fighters and medics alike are showing the strain. And they're lashing out at their should-be protectors. "They shouldn't hit the revolutionaries. We're helpless," says this fighter.

Dr. Ahmed Abu Bakr, a Libyan doctor living in Germany, came to Ajdabiya to volunteer in the hospital. He didn't come here to patch up the wounded from friendly fire.

DR. AHMED ABU BAKR, LIBYAN DOCTOR: I am very, very, very unhappy to the action. They came here to help us, not to injure us.

WEDEMAN: The attack has left the opposition forces reeling and sparked yet another wild retreat. First foe and now, it would seem friend, has them on the run.


ANDERSON: And Ben joins us now live from Benghazi.

Just not what the rebels needed at this point -- Ben.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: No, it's not. It was a real actual morale blow for the rebels, given the difficult week they've had. And we were out in Ajdabiya yet again today. And we saw that the town is now very literally defended. And in the afternoon, it is near at about 3:00 p.m. The western gates of the city came under bombardment yet again. And it seems that the remaining defenders of that city may be on their way to Benghazi -- Becky.

ANDERSON: Ben Wedeman reporting on the ground for you.

As Ben said, this caps a very frustrating week for the rebels, unable to make any headway against Gadhafi forces; indeed, even losing some ground.

Well, after fleeing east from El Brega on Tuesday, rebels have been locked in running battles with Gadhafi's troops ever since on the road to Ajdabiya.

A top U.S. commander now calls the war a stalemate. Downplaying expectations even further, General Carter Ham says it's very unlikely the rebels will be able to overthrow Gadhafi.

Well, a Nat -- a NATO spokeswoman also saying, in no uncertain terms, that there will be no military solution to this civil war.

Well, now that those hopes are fading that NATO's military campaign might be able to tip the balance, where does that leave the rebels and, indeed, NATO?

We're joined now by two guests, a former NATO commander, Chris Parry, with us here in the studio tonight and a regular guest on this show; a member of the Libyan opposition, Guma El-Gamaty, with a seat at the top table at the Libyan Conference last week. He spoke, of course, to Hillary Clinton and, indeed, to David Cameron.

NATO, it seems, caught between a rock and a hard place at this point.

Guma, there are those who say that the rebels should share the blame for these casualties.

GUMA EL-GAMATY, LIBYAN OPPOSITION MEMBER: Well, there's no doubt that there has been some sort of breakdown of communication. I think maybe channels are not as effective as they should be and maybe they have had interference or even infiltration from Gadhafi's side to try to guide the NATO fighters to -- to hit the revolution fighters.

However, I think we should keep this in perspective. We know two facts. The first fact is that the international alliance planes are not intentionally trying to hit civilians, but accidents do happen. They are very regrettable.

On the other hand, Gadhafi's forces are intentionally targeting civilians and they have killed over 10,000 so far.

So, you know, yes, I mean civilians on our side have been killed, tens. But against 10,000, this is expected. It is regrettable, but it is expected.

ANDERSON: Chris, you're a former NATO commander. Take us behind the scenes on a day like this.

How will all this be playing out?

CHRIS PARRY, FORMER NATO COMMANDER: Well, I think most military commanders will be struggling to see some clarity in the situation. You've got Gadhafi's troops, mostly in four by fours, with light machine guns and heavy weapons. And they're mixing up with the population. They're mixing up with the riders. It's very difficult to tell friend from foe.

ANDERSON: NATO working at a limits of its remit, at least, it seems at this point.

Is it also working at the limits of its capabilities?

PARRY: I think it is working at the limits of the remit given to them by the United Nations. It did say they could take all measures to protect civilians and also to protect Benghazi, of course.

I think what's got to happen is the military commanders have got to go to the politicians and say, look, we've done what you -- we -- you told us to do. Let's go back to the United Nations and say what do we do now?

ANDERSON: There will be no military solution, says a number of people involved in this conflict today, Guma.

So what is the political solution at this point?

EL-GAMATY: The political solution is for the international community to keep the pressure on Gadhafi and his sons to leave and leave power as soon as possible to stop the bloodshed.

ANDERSON: They're not going to do that, though, are they?

EL-GAMATY: Well -- well, I'm not sure about that, because I mean there is a big question tonight. Senator Weldon just left Tripoli after waiting three days to see Gadhafi. He failed to see Gadhafi despite Gadhafi himself inviting him to come across.

So that leaves a big question tonight, where is Gadhafi?

Our very reliable sources say Gadhafi himself is now incapacitated. He's no longer fit mentally and clinically. He's not running the country. He's not making any decisions. His sons have locked him up and they are running the show.

If that is the case, that means Gadhafi's regime is effectively finished. It's just a matter of time.

ANDERSON: Arming the rebels, NATO, of course, has always said its remit is that which Resolution 1973 set down.

We are now, of course, though, hearing -- at least the UK and the U.S. -- extending their vision of what that resolution means, talking about arming rebels, not necessarily from the Western side, but encouraging the Arabs to do so.

How do you buy that?

PARRY: Well, I think it's got to be part of a comprehensive campaign. I -- I would disagree that there isn't a military solution. I think there is. We can blockade by land, sea and air, the regime. We can strangle it in Tripoli. It's going to run out of supplies soon.

At the same time, we can start training the freedom fighters. I think supply them with weapons is probably a step too far, because we don't control where those weapons go.


EL-GAMATY: I think weapons will be no problem. I -- I believe some weapons are coming in from brother -- brotherly Arab countries, Arab nations. Maybe we can solve (ph) them somewhere else. Training is going on.

I think the military solution is not lost. The cause is not lost. The longer the international community maintains the pressure militarily and politically, the more Gadhafi's forces are going to be degraded and -- and isolated, supply lines hit and maybe even start to meltdown, especially if they learn that Gadhafi himself is probably clinically finished. That will demoralize them and then make them, probably, just wither away.

ANDERSON: A tough theater of war at present.

We're going to have to take another


We thank you very much, indeed, both of you, for joining us this evening.

The situation as it stands in Libya.

You're watching CONNECT THE WORLD here on CNN.

When we return, demonstrations turn deadly in Syria. The government and protesters have two very different accounts of what happened.

Plus, we bring you the very latest on Portugal's economic bailout. And I'll be talking to three young people who've moved to avoid the European debt crisis.

That, coming up.


ANDERSON: Well, the clock is ticking and U.S. Congressional leaders are still bickering over a budget that would keep the federal government up and running past midnight tonight. But with less than eight hours to go before the current budget expires, there is still no deal.

We'll have the very latest developments from Washington and reaction from around the world.

That is coming up in the next 15 minutes or so.


I'm Becky Anderson in London at just about 15 minutes past 9:00.

A look at the other stories that we're following for you this hour.

And at least seven people were seriously injured when a bomb exploded on Friday at the Independent National Electoral Commission office in Nigeria. Parliamentary elections are due to be held tomorrow after being postponed earlier this week because of violent uprisings in the country.

Well, a day of protest in Syria today devolved into a violent show of deadly force, leaving many dead. But the government and protesters have wildly different accounts of who exactly what killed.

CNN's Rima Maktabi is following the story from CNN Center.

And she joins us now live -- Rima, what do we know?

RIMA MAKTABI, CNN CORRESPONDENT: Becky, protesters -- anti-government demonstrators -- took to the streets in at least 10 major cities today in Syria. We see those cities all over Syria on the map -- Hamad, Danar (ph), Tartus, Homs, Damascus, Daraa, Latakia and other cities.

We start with Daraa, which witnessed the deadliest clashes today between protesters and armed security forces. It all started after the noon prayers in Al-Almari Mosque after which Syrians took to the streets, objecting to the limitation of freedoms and other issues in Syria.

And it was then, that the -- they clashed with the security forces.

Now, here, there are two accounts for this story. The state TV -- Syrian state TV showed these images and said that an armed group fired at demonstrators and also at security forces and killed 19 security forces and injured 75 others.

The political activists and witnesses tell a different story. They show other vigils, which we could not verify the ausen -- authenticity of. And they say that the government forces shot at protesters and killed at least dozens.

And these are the vigil -- these are the images we got from the political activists -- Becky.

ANDERSON: All right, Rima, from there.

Thank you very much, indeed, for that.

Rima Maktabi reporting for you with the story out of Syria.

But while a company owned by media magnet Rupert Murdoch is admitting a liability in a voice-mail hacking scandal that has stunned Britain.

Our Nima Elbagir looks at who was targeted and why the move is likely to cost the company many millions of dollars.


NIMA ELBAGIR, CNN CORRESPONDENT (voice-over): It was a scandal that rocked the highest echelons of British society -- the rich, the famous, not even the royals were immune. After four years, it's finally come to a resolution.

The Rupert Murdoch owned News of the World has admitted liability and apologized for hacking into the phones of high profile celebrities, saying in a statement: "News International has decided to approach some civil litigants with an unresolved apology and admission of liability in cases meeting specific criteria."

But will it be enough to limit the damage?

MARK LEWIS, LAWYER: And people want to find out the truth first. And once they've found out the truth, we want an apology and an undertaking that these things aren't going to happen. And then they want to be compensated.

ELBAGIR: Lewis said he expected compensation alone could run into millions of pounds. And that's without factoring the impact on the rest of Murdoch's business empire.

News Corp, owner of the UK cable northwest, Sky, is seeking government approval for an $8 billion pound Sky merger. That approval could now be in question, as he comes under increased criticism.

But ultimately, the News of the World actions have wider implications. There have already been calls in the House of Lords for greater industry regulation -- a concern News International is clearly sensitive to, noting, they will continue to challenge those who attempt to restrict our industry.

But like it or not, Britain's famously ferocious tabloid press could soon find themselves on a leash.

Nima Elbagir, CNN, London.


ANDERSON: Well, the budget battle in Washington could claim its first casualties in a matter of hours. There is still time for a deal. We're going to head to Washington for the latest in discussions there just ahead.

Stay with us.


ANDERSON: A very warm welcome back this Friday evening in London.

Now, countdown to a shutdown -- U.S. Congressional leaders are racing against the clock, trying to come up with a budget both sides will be happy with by midnight this Friday.

Well, if they don't, parts of the U.S. government will simply come to a screeching halt.

Nearly a million workers will be told to stay home. Tax refunds won't be processed. Neither will passport applications in the U.S. or visa applications in embassies around the world.

National parks, museums and zoos will have to close their doors, too.

But there is still time for a deal to be reached.

Democrats say Republicans are hung up on funding for women's health clinics like Planned Parenthood. Republicans deny that, saying the main sticking point is how much to reduce spending in the budget.

And frustration over a possible shutdown extending far beyond the U.S. capital city.

CNN's Jill Dougherty following that part of the story from the State Department for us -- Jill.

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: And I think that would be for Americans who are traveling or living abroad, is what happens if they are in another country and the State Department is at least partially shut down?

So we've been asking them. In fact, they have a pretty good Web site where you can check this out.

But, essentially, it's going to turn into emergency and non-emergency services. If you are abroad and you have a very serious emergency, you know, life or death or a child who has to get back to the United States, something like that, you will be able to get services from the U.S. government, from the State Department.

However, if you are just routinely trying to get a new passport or a visa, you may be out of luck, we are told, because non-essential personnel will not be working and it is really going to slow things down.

And that also applies to people -- citizens of other countries who want to get visas to the United States. That is going to shut down, too.

And then one other thing, Becky. I talked to a senior administration official here who works in that area. And he was saying if the government shuts down -- and that's still an if -- they're essentially going to tell people don't even apply for a passport, because it really could take a very long time.

ANDERSON: It's going to be inconvenient at -- at best.

All right, we've got many hours to go.

Jill, thank you for that.

In the event of a shut down, government workers who are told to stay home will simply not be paid. Neither will military families, many of whom rely on government paychecks to survive.

Well, even the life insurance paid to the families of soldiers killed in action will be put on hold.

CNN's Chris Lawrence has that part of the story for you.


CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice-over): Just the threat of government shutdown is putting this military family through hell.

AMY TERSIGNI, HUSBAND DEPLOYED IN IRAQ: And, yes, I'm scared. I -- I don't know what's going to happen and I don't know how I'm going to be able to provide for my kids.

LAWRENCE: Amy Tersigni has a 2-year-old, a 3-month-old and a husband in Iraq she hasn't seen since September.

TERSIGNI: It's hard enough having a relationship and dealing with everything of them being over there and not home and telling your kids when they go to bed at night, sorry, daddy is still at work. But then the financial stress of not having a paycheck and not knowing when you're going to get it doesn't help.

LAWRENCE: And her husband?

He's already concerned about protecting himself and his team in Iraq.

TERSIGNI: Having to worry about financial stress and the government shutdown absolutely will not help.

LAWRENCE: And Amy is not alone.

UNIDENTIFIED FEMALE: I just wonder how much more our military families can take.

LAWRENCE: We found worried husbands, wives, even a mother whose son is fighting in Afghanistan.

LEELLYN MENDEZ TOVAR, SON DEPLOYED IN AFGHANISTAN: He has four children that he's supporting and if this government shuts down and he doesn't get paid, I have -- I don't know what's going to happen.

LAWRENCE (on camera): Well, all troops will have to report for duty. None will get paid while the government is shut down. They'll get it all in back pay eventually.

(voice-over): But depending how long this lasts, that could be May 1st or later.

ROBERT GATES, SECRETARY OF DEFENSE: The smart thing for government was always to pay the guys with guns first.

LAWRENCE: House Republicans have passed a short-term resolution that would fund the Defense Department through the end of the year. But the White House says that bill is just kicking the can down the road without coming to terms with the real budget.

TERSIGNI: But until the -- they're the ones living paycheck to paycheck, missing a paycheck, not living with their family, they -- they don't totally get it.

LAWRENCE (on camera): And there are thousands of young military couples who just haven't made enough money and haven't had enough time to sock away enough in savings. Now, they won't be entirely cut off from their support services during a shutdown. Military hospitals, emergency dental care, mess halls and day care -- all of these will remain open, even while the government is shut down.

Chris Lawrence, CNN, Washington.


ANDERSON: All right. Well, if the government then does shut down, it would seem that everyone loses. I don't mean this to sound facetious, but that may not necessarily be the case.

Political analyst and regular guest on this show, Bill Schneider, is in Washington to break it down for us.

Bill, let's start with President Obama himself.

Winner or loser in all of this?

BILL SCHNEIDER, POLITICAL ANALYST , THIRD WAY: Well, Becky, I hate to quote Charlie Sheen, but I would say winner. He looks like the grown-up in this negotiation. He looks like the guy who's taking the middle, moderate position, who's trying to go some distance to compromise. And he has compromised. He's gone more than half way toward what the Republicans are demanding.

He's under pressure from Democrats to be more confrontational. But he's not going along with that. He's trying to play the role of the grown- up here. And even though there will be a lot of anger if there's a shutdown, I think the president looks far more responsible than anyone else, especially because by going more than half way, he's dividing the Republicans. And -- and that means he's in a better political position.

ANDERSON: So I guess the answer to my next question, which is, Republicans, winners or losers, is fairly obvious, is it?

SCHNEIDER: Losers, except for one little footnote. Republicans will look like winners to their hard core base, right-wing constituency, which a lot of Republicans in Congress are terrified of, because they showed, last year, in the mid-term election, that they are capable of overthrowing Republicans who compromise. So the Republicans are terrified of compromise. Some say they're standing up for principle. Others are just frightened of what could happen to them.

But if the government shuts down, I think a -- the American people, the voters will say, why were they so -- well, why was it impossible for them to compromise, especially since the two sides are so very close.

And why did they insist on putting issues like abortion and greenhouse gasses in with a budget package?

It makes no sense.

ANDERSON: Bill, you will know this very well. This isn't the first time this has happened, nor, probably, will it be the last.


ANDERSON: What sort of historical context do we have for this?

SCHNEIDER: Well, the historical context is this. American politics works through compromise. That's the way our system was engineered. We have divided government. In Britain and most countries that have parliamentary democracies, you can't have gridlock. If the country -- if the country can't be governed, the government falls and you have another election.

In the United States, we don't work that way. We have divided government. We have it right now. We have two houses of Congress that are divided. The president and Congress are divided from each other. We have 50 states. And if they're controlled by different parties, they are expected to compromise.

And the history says that is what the voters expect them to do and want them to do. And if they can't do it, the voters blame the politicians.

ANDERSON: All right, this happened back in the early '90s, of course, under the Clinton administration.

What happened back then?

Was the economy a winner or a loser?

SCHNEIDER: Well, it didn't have a big impact because the government was shut down only for a few weeks and we were already in the midst of an economic recovery. Things were moving along very, very quickly. The economy boomed after 1996, when the economy was shut down. And Bill Clinton was clearly the political winner.

Now, of course, the recovery is much more tentative. People are very nervous. It could have a very damaging effect on the economic recovery because it creates uncertainty. And if there's one thing business cannot live with, it's uncertainty.

ANDERSON: Mr. Schneider in the house for you this evening.

You're looking at pictures, of course, of President Clinton now, as we wait to find out whether these two sides can really sort things out. They have about seven-and-a-half hours from now.

Well, while the U.S. may be in budget turmoil, there is one country that knows the feeling all too well. Next up, Portugal's pains are now Europe's headache. We're going to take a look at the latest bailout talks by finance chiefs meeting in Hungary, after this.


ANDERSON: You're back with CONNECT THE WORLD. I'm Becky Anderson in London. Lots coming up for you this evening.

Putting a price on Portugal. The EU says the bailout could top $100 billion.

Bikes beating the traffic jam blues. Our Urban Planet series hits the clogged up streets of Jakarta, the last of a special series of reports this week.

And are you addicted to technology? We look at how much these gadgets really mean to you and me.

That in just in a moment. First, before all of that, as ever at this point, let's get you a very quick check of the headlines.

A Nigerian official says at least seven people were seriously injured when a bomb exploded in the city of Suleja. The blast came at the offices of the Independent National Electoral Commission in the event of a parliamentary election.

A source tells CNN more than 22 people have been killed in protests in Daraa in Syria. The source says security forces fired on protesters who'd gathered after Friday prayers. Syrian state TV, though, says gunmen killed 19 security officers.

New fighting in eastern and western Libya. Rebels fled Ajdabiya on Thursday, and now the city is under attack from regime forces. In devastated Misrata, witnesses and news agencies report new clashes between rebels and pro-Gadhafi troops, as well as several deaths.

Those are your headlines this hour.

Amnesty International is making an urgent plea for information about four businessmen arrested last month in Tripoli. They haven't been seen since. Two of the men are brothers, both British nationals who were working at a software company. One of them is the husband of our next guest. The other is her brother. Asma Ghoneim is joining us from Lexington in Kentucky.

Thank you for joining us this evening. When did you last hear from your husband?


ANDERSON: And nothing since then? Which is nearly three weeks, am I correct?

GHONEIM: Yes, over three weeks, actually. The last time, when I heard from him, everything was fine. He was just calling me to check on us and everything was fine.

Then, on the 19th at night my time, Khaled Sury, who is one of the captured men, his brother lives in the States, he called me and he was inquiring about his brother. The last time the family heard from him, he was at my husband's house. And he called his wife, told her "I will be there in an hour" and then he disappeared. Never came home, telephone was shut off, they couldn't get a hold of them, so they called me.

ANDERSON: This must be really distressing. Has -- have either of them had -- ever had any run-ins with the authorities before?

GHONEIM: Not at all. My husband, it's very important to put out there that he has no political affiliation, my brother-in-law, as well. The two other gentlemen that were with them, same thing. They are all businessmen.

They -- my husband and my brother-in-law, they were in Libya for business. My husband resides in the States with us, and my brother-in-law resides in the UK. They are British nationals. They were born in Leeds. They went to school in the States -- I'm sorry, in the UK.

My husband after school moved to the US. He's been in the US for over 20 years. My brother-in-law, actually stayed in the UK.

ANDERSON: All right. And we're looking at pictures, I know, of your brother-in-law. Now, we've been looking of pictures of your husband. What are you hearing from officials, if anything, at this point?

GHONEIM: Unfortunately, we're not hearing anything. At this point, we just want to know where they are. They have not even told us this. They took them without explaining why they took them. They haven't been allowed any legal counseling. They have not been allowed to call family. We don't know anything about them.

If it wasn't for the fact that he had somebody that was visiting him at the time whose family knew where they were, I wouldn't even know where my husband is at this point.

ANDERSON: Right --

GHONEIM: But this is how I found out that he was taken, and it's very urgent, it's a very urgent matter. It's very important. My husband is a diabetic. He's been without his medication for three weeks, now. God knows what kind of condition he's in. This is really hard. Never dealt with anything like this before.

ANDERSON: All right. With that, we're going to leave it there, but we do appreciate you joining us on CNN this evening. We wish you and your husband and your brother-in-law, of course, the best. An appeal, there, putting a face, really, on what is going on on the ground in Libya for you.

We did reach out to the Libyan government to get an official response to this story, but no luck so far. We will, though, keep trying, and anything we get, of course, we will bring it to you here on CNN.

To the bailout situation in Portugal. Now, just how much money will the country need? The EU's monetary affairs commissioner says this is probably what they'll be looking at, it's $115 billion. That is around 80 billion euros.

Well, Portugal's debt crisis has been top of the agenda, of course, for European finance ministers at a meeting in Budapest in Hungary. They now set a date of mid-May as a deadline for a bailout deal.

But these negotiating terms won't be easy. Rescue funds want to see large economic over -- Sorry, let me start that again.

It's a difficult to see exactly how these negotiations are going to come, and that is precisely what brought Portugal's minority government undone trying to introduce budget measures aimed at trimming the deficit.

Diana Magnay takes a look, now, at how news of a bailout is going down on the streets of Lisbon.


DIANA MAGNAY, CNN CORRESPONDENT (voice-over): There's so much that's charming about downtown Lisbon -- the picturesque trams, each street a treasure trove of old-fashioned delight, great for tourists. Less so for those who live here.

Carlos Calheiros Cruz inherited this haberdashery from his father. He's seen the business decline in the last 20 years as Portugal's textiles industry lost ground to foreign markets.

MAGNAY (on camera): Do you think that Portugal's doing the right thing by asking the European --

CARLOS CALHEIROS CRUZ, HABERDASHER: Yes, of course. It should have been months before.

MAGNAY: Do you think the situation's got a lot worse because they waited?

CRUZ: Yes, because there was incompetence and corruption on the government.

MAGNAY (voice-over): It's early morning down at the market, hardly the busiest time, but Alzira Silva says it's pretty quiet generally. She blames the current crisis on a culture of overspending and, now, the party's over.

ALZIRA SILVA, GROCER (through translator): "People spent more than they earned," she says, "but also, the banks were in the business of lending money to everyone, and people took advantage of that."

: Look at these, so far. From morning, we were issuing at one and a half -- percentage points, and now, we're at nine percentage points. So --

MAGNAY (on camera): And what does that -- For one year -- ?

UNIDENTIFIED MALE: Nine percent. Nine percent on the two yield.

MAGNAY (voice-over): Analysts predict it will just get worse before it gets better.

UNIDENTIFIED MALE: We're facing a package of austerity measures that will hurt the Portuguese consumer, the families, and the companies. So, we have 15 years of the cheapest banking system in Europe, and we'll have now the more expensive banking system in Europe for the next ten years.

MAGNAY (voice-over): A desperate catch-up after running a current account deficit of 10 percent of GDP each year for the last 15 years.

MAGNAY (on camera): Portugal used to rely heavily on textiles and on the agricultural sector, but because of a cumulative increase in wages and also increased competition from abroad, it effectively priced itself out of its own export market.

A lot of people here you speak to say that Portugal's only real asset, now, is the sun, and that it's renewable energies and tourism that are the growth of Portugal going forward. Diana Magnay, CNN, Lisbon, Portugal.


ANDERSON: Well, Portugal is, of course, the third country in the euro zone to officially ask for help, joining Greece and Ireland. Now, imagine, if you will, that you're a taxpayer in these countries, facing some of the harshest austerity measures seen in decades. I guess the question then is, what incentive is there to stay?

With me now, two young 20-somethings who've moved to London in search of work, jobs, better opportunities, effectively. Darragh Jones, an accountant from Ireland, and Joao Brazao is a graphic designer from Portugal.

Darragh, you left Ireland when?

DARRAGH JONES, ACCOUNTANT FROM IRELAND: About 14 months ago. I left in February, 2010.


JONES: Purely job-related. I did a finance degree from -- I went to university, had one or two temporary jobs afterwards but, realistically, if I wanted to progress my career, I had to leave the country.

ANDERSON: And you left Portugal when?

JOAO BRAZAO, GRAPHIC DESIGNER FROM PORTUGAL: I left about a year and a half ago. Same situation. I wasn't even looking for a job at the time, because I knew I wouldn't find one.

ANDERSON: Does this -- or do these feelings reflect, pretty much, what most of your mates feel like at this point?

BRAZAO: Yes, pretty much.

JONES: Yes, definitely.

ANDERSON: Would any of you -- or would either of you rather be at home if opportunities existed? Or would this possibly be a choice anyway that you might make?

JONES: I can't comment on that, because I can't really imagine a situation at home with prospects. Ideally, I'm an Irishman. I'd like to be at home. But for the foreseeable future, I don't know.

ANDERSON: So, is this permanent? No going back at this point?

BRAZAO: I don't think so, no. Well, if the situation was better, which I seriously doubt that it's going to happen in the further years, I would go back, because the weather's best. It's better there.


ANDERSON: Good for you. All right, let me ask you, then, what your view of today's politicians is? Darragh, do you feel let down?

JONES: Personally, yes, I do, because I blame the government for the past 15 years in Ireland. They're the reason I'm here. The likes of my generation have had nothing to do with the economic climate or the crisis, and yet we're the ones paying the price.

ANDERSON: I know that you were actually born here at a time when there was another brain drain out of Ireland in the mid 1980s. So, it's almost like a double whammy for you, at this point. Again, to you, Joao, do you feel let down?

BRAZAO: Yes, I do. I feel let down because I've been hearing about this crisis for years, and I think that they didn't take action when they were supposed to and, now, we feel that it's too late already.

ANDERSON: You've got a change of government at home. You're getting one, of course, on June the 5th.


ANDERSON: Frankly, the Irish government's probably got an awful lot on their hands if they think they're going to sort this out anytime soon. We're looking at, probably, a lost decade at this point.

JONES: Yes. Realistically, yes.

ANDERSON: And in Portugal as well?

BRAZAO: Same thing. It's -- we're going to have a -- pre-election, now, in two months' time. But I don't think that's going to change anything.

ANDERSON: Talk about a lost decade, which does, effectively mean, a lost generation. It's really quite easy to sit here and talk to you guys, you're fully employed, of course, in England, and you've got yourself jobs. But you're lucky, aren't you? Because there will be many people at home for both of you who probably haven't even got the opportunities that you've got at the moment. Just talk me through sort of friends and family stories, if you will, Darragh.

JONES: From the majority of my university class, the lucky few get a job in Dublin if they wait in Ireland. Realistically, if they want to get a job, they have to emigrate. Most people go to Australia, Canada, London. I've seen -- since I've moved here myself, I've had so many people calling me, looking for advice for moving to London.

ANDERSON: And a bed, I assume.

JONES: Yes. A floor, whatever, a couch.


BRAZAO: Yes, I can remember two good examples. I have a friend of mine that -- he finished a pilot course, so he's actually a pilot, he can fly a Boeing. And he's working in a supermarket. And that's just one example. And he's still living with his parents, as most of my friends do in my generation. I'm 26, and I know people in their 30s still living with their parents and having a teenage life.

ANDERSON: What's your message to the European politicians, briefly, then, this evening. Darragh?

JONES: Don't know. Help us out, if you can.

BRAZAO: Yes. Help us. Not much.

ANDERSON: It's not easy. You're both in your early 20s. Wish you the best of luck.

BRAZAO: Thank you very much.

ANDERSON: Glad you got jobs here. I hope you go home at some point very, very soon. Especially to the sun for you.

BRAZAO: All right. Thank you.

ANDERSON: All right. Coming up on CONNECT THE WORLD, the bustling city of Jakarta is often gridlocked. Motorcycles are a lifeline, then, for residents trying to get around. Find out more as our Urban Planet week closes out with a special report for you this evening. Stay with us.


ANDERSON: If you live in a city somewhere in the world, you'll know that most of them are bursting at the seams and not slimming down anytime soon. We're told by the United Nations that by 2050, two thirds of us will actually be in urban areas.

Well, CNN and CONNECT THE WORLD's Urban Planet week kicked off this week in Rio de Janeiro with a look at how the city is looking after its elderly population.

In Kibera in Nairobi, one project is turning rubbish into a resource, cleaning up the streets and providing food in Africa's biggest slum.

One of the most precious resources for human survival is, of course, clean water, and on Wednesday, we looked at how Singapore is making sure that that doesn't run dry.

And then, to Mumbai, this week, we brought you the story of a slum made famous by the film "Slumdog Millionaire." A plan to redevelop the large area has both fierce critics and supporters. You can find most of these reports at Facebook/connecttheworld, if you missed them this week.

Friday, of course, today, is the last of our special series of reports, and as more and more of us move to the bright lights, cities are having to cope with road chaos. In Jakarta, it's often gridlocked. Some residents have found a way to beat the traffic. Have a look at this.


UNIDENTIFIED FEMALE: As anybody who lives in Jakarta would know, the Jakarta traffic is the most ridiculous thing. Taking a motorcycle is just faster because you just weave through traffic, you weave through cars, and you don't have to sit there for so long.

An ojek is, basically, just a guy on a motorbike. And usually there are signs up on the street that just say "Ojek." And you can go up to the guy and be like, "OK, I want to go from point A to point B, how many is that going to be?"

Go-jek is a company. It's more -- formal, I suppose. They give you a helmet of your own, it's cleaner than the ones that you would get on the streets. And they give you set price from the second that you call.

Usually in a car, to work would probably be 25 minutes, maybe. If it's raining, it's probably like half an hour to 40 minutes. And then, on an ojek or a Go-jek, it's about 15 to 20 minutes, I think, and it's just -- it's fun.

UNIDENTIFIED MALE: The idea, there, is if you professionalize the ojek service, it because a viable means of transport. People will consider, "Should I take a taxi, should I take an ojek?" The ideals of Go- jek is to really expand the -- is to empower the ojek driver. And as part of that is to increase his potential revenue pool.

So, instead of just simple transport of human being from point A to point B, we offer, also, courier services. You can deliver anything from invites to cellular phones to letters.

UNIDENTIFIED MALE: You're offering the services with a brand, with an image, with something that is just better than looking at just an ojek driver, which has no brand, and you're kind of like riding them at your own risk. I believe this is something optimal that we can offer to Jakarta customers.

UNIDENTIFIED FEMALE: I just really don't like sitting in traffic. It really bothers me. So, I don't know, that's why I take the Go-jek.


ANDERSON: The end of our Urban series -- Urban Planet series of reports. It'd be nice to get onto a bike some days here in London, as well.

Well, after the break, it didn't get the nickname "CrackBerry" by accident. We're going to take a look at why people just can't get enough of their gadgets and what happens when you take a gadget off them. That's the technology addiction in just a moment.


ANDERSON: Panic, confusion, and even physical distress. These are just some of the symptoms when students were forced to unplug from technology.

A new study by the University of Maryland asked almost 1,000 students at college campuses around the world whether they could give up their reliance on technology for a day. This meant avoiding mobile phones, the internet, computers, and watching television.

Let me just give you some of the results. They concluded that a clear majority were unable to avoid their gadgets for one full day. And furthermore, students find mobiles have literally become an extension of themselves.

Let's find out just what happened in two very different countries that are both in this study. In Argentina, for example, this is what this study found. Have a look at these.

Fourteen percent felt distress when their gadgets were taken off them. Sixteen percents saw the benefits to a certain extent. Twenty-one percent, well, they felt isolation. And the majority of people felt like they were failures in life without their gadgets.

Moving on to Uganda, slightly different results, as you see, here. Fourteen percent said they felt boredom. Addiction, well, 14 percent of those surveyed said that that's how they felt. Twenty-one percent felt distress, 36 percent, at least in Uganda, felt the benefits of it.

And if you just hone in on a couple of places, here, some of the comments made by people during the trial. In the USA, somebody said, "I felt like a drug addict." "It felt as though I was being tortured." And in the UK, "Emptiness, emptiness, overwhelms me."

Have a look at this. Oh, I've lost it. Anyway, there was another one, there.

Let's bring in the director of the project of the World Unplugged, Susan Moeller, who is Princeton in Jersey with her phone off, I hasten to add, so that nobody calls you during this interview.

When you started this survey, did you have any idea what the results would be?

SUSAN MOELLER, PROJECT LEADER, "THE WORLD UNPLUGGED": Well, we had done an earlier study in the United States, and we did come up with much along the lines of what you just said, which were students were very distressed when they took their phones and everything else away from them.

But, frankly, we did think that going out to these ten countries, very different, in terms of development, in terms of media, in terms of culture, government, everything you can mention. And yet, every single student just about --


MOELLER: -- reported the same thing.

ANDERSON: And one of them said, "I feel paralyzed, almost handicapped in my ability to live." I missed that one on the chart earlier on.

We, Susan, did our own survey here in London on the streets of London. Not as extensive, of course, as yours was, but have a listen to what some people had to say today.


UNIDENTIFIED MALE: I just got my phone stolen, and now I feel like I've lost my arm, do you know what I mean?

ANDERSON: What about you? Are you addicted?

UNIDENTIFIED MALE: I think -- I think "addicted" is a strong word, but you probably have to use addicted, yes. I think the whole world is. My BlackBerry stopped working for a day, and I didn't know what I was going to do with myself.

ANDERSON: What happens if you lose that?


ANDERSON: Can you not --


ANDERSON: You can't do without it these days?



UNIDENTIFIED FEMALE: I've lost my BlackBerry, like, four times, and I get another one and another one. I love my phone.

UNIDENTIFIED MALE: I'm addicted to gadgets.


UNIDENTIFIED MALE: I don't know. It's just a craving to have the next coolest thing, I think. And if you have it first, as well, it makes you so much cooler.

ANDERSON: If I said to you I'm going to take all your technology away today, what would you say?




UNIDENTIFIED MALE: Nothing to live for, anymore. Everything's gone.


ANDERSON: Can you live without your phone, your iPhone, your smartphone these days?

UNIDENTIFIED MALE: Happily, yes. I switch it on, switch it off. It's off at the moment.


ANDERSON: With the exception of that very last guy, nearly everybody I spoke to nearly lost their plotsies when I said that I was going to take off whatever gadget they had on them for a day. What are the implications, seriously, of what we have heard?

MOELLER: Well, I think there's a number of implications. One is is that it's just very hard to function in today's world without our access 24/7. Work demands it, universities demand it.

But I think the other takeaway, perhaps, is that people today, younger adults especially, they do not know how to connect to their friends without being able to text, call, when they want it. These are kids -- a third of the students had said they had gotten their cell phones before they were 12. And essentially, they'd spent their entire teenage years, young adult years, being wired full time.

ANDERSON: Fascinating stuff. Susan, we're going to have to leave it there. We thank you very much, indeed, for joining us. Whether that is good or bad for them going forward, only time will tell. Susan Moeller with what has been a fascinating multicultural study. We thank you very much, indeed, for joining us.

MOELLER: Thank you.

ANDERSON: Well, if the government shuts down tonight, national parks and zoos will go dark, and services like tax refunds and passport processing will grind to a halt. But the federal government can't put nature on hold so, this weekend, one of Washington's most famous events will still go on.

It's cherry blossom season, and we have devoted Parting Shots to that. The festival is held every year in DC during the brief window of time when the trees are in full bloom and thousands of people turn out for a chance to see them.

Well, the trees were actually a gift from Japan in 1912 as a symbol of friendship between the two countries, and people in Tokyo are turning out to admire the pink blossoms there, as well.

Not to be outdone, right here in London, we're enjoying several days of the most fantastic weather. We don't expect it like this in April, of course. If you've ever been here, you would've expected rain, but we've got temperatures above 20 degrees, and our very own cherry blossoms have emerged magnificently. Look at that.

Just before 10:00 in London, I'm Becky Anderson. That is your world connected. Thank you for watching with us this week. The world news headlines and "BackStory," here on CNN will follow after this short break. Don't go away.