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Ukraine Agreement with E.U.; Crisis in Ukraine; Crisis in Iraq; Suarez Goes Home; Lavrov on Ukraine; Japan's Whaling Season; Syrian Civil War; Israel's Search for Teenagers; Mass Exodus in Pakistan

Aired June 27, 2014 - 08:00   ET

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

PETRO POROSHENKO, UKRAINIAN PRESIDENT (through translator): Would like to underline we do not have to introduce sanctions just for the

sanctions. We do have a need for a dialogue. We do need to speak with Russia. I really hope that now in this format, this dialogue, finally will

take place. We will have the real cease-fire and the implementation of my peace plan will come.

JIM CLANCY, CNN HOST: All right. Poroshenko has been talking here about a peace plan of his own. He wants to see negotiations of that that

would see a release of all of the hostages, all of the prisoners that may be held, including some OSCE observers.

He said he wants to see the border posts along the border between Ukraine and Crimea and Ukraine and Russia returned to Ukrainian control and

an absolute cease-fire.

Now this is a controversial deal because, as we pointed out, Russia has been concerned that, as Ukraine moves closer to the European Union,

Moscow could be hurt financially. It warned that if the Russian market is negatively affected by the agreement, Russia would -- I'm quoting here --

"undertake its own measures."

POROSHENKO: He not support it, so-called Vladiyav (ph) assessment. He is nobody. And it's not interesting for me, his opinion. That's it.

MODERATOR: Ukraine, excuse me, Pasha (ph)?

QUESTION: (Speaking foreign language).

MODERATOR: So conclusions.

UNIDENTIFIED MALE: Yes. But if Ukrainians detail, of course.

QUESTION (through translator): The question is as follows: in the conclusions of the European Union, we have this requirement to have a

decision taken by the 30th of June.

What does it mean, that until this time we will have cease-fire?

POROSHENKO (through translator): Thank you very much. But the decision will taken -- will be taken by me when I return to Ukraine. I

will have to conduct the consultations with the minister of defense, the defense council, the heads of the general staff and other people from the

national defense and Security Council. But of course, the time will be out on 27th, today at 10:00 pm.

So the decision will be taken today.

QUESTION (through translator): President, in French, if I may.

I'm from "Le Quotidien" with Quinze (ph).

Can you hear the translation, sir?

Yes, I'd like to know what is your -- what is your message to the Europeans, to the heads of government and state?

What do you expect from Europe now that the association agreement is signed, both now and later?

And are you expecting the E.U. to help you and support you in the reforms for security?

And what sort of support are you expecting on the E.U., on security, because you said that's the most important thing for you today from the

Ukraine?

POROSHENKO: The decision of the European Union Foreign Affairs Council for supporting Ukraine economically, we get some market financial

support as the first stage. It would be additional form of support. It would be security support, opening the special mission of European Union

and Ukraine.

On the 8 of July, it would be special donor conference for Ukraine, helping us in the security question, the security problem. And the -- my

main message and my main impression from today meeting of European Union and council, all European Union, whole Europe are demonstrating solidarity

with Ukraine and demonstrate the readiness to cooperate and support Ukrainian reform, no doubt.

And the resolution of -- conclusion of the European Council also confirmed that in the security question, we stay together. And the

question of, again, question of values, question of democracy, question of freedom would be strongest support by all 20 member states.

MODERATOR: To Ukraine, excuse me.

QUESTION (through translator): "Businessweek," I represent the press of the eastern part of Ukraine. That's why my question is what expects the

industrial part of Ukraine after the signature of cessation agreement taking into account that many factories are stopped, not working, taking

all this in the account, that the factories in the eastern part do not work?

POROSHENKO (through translator): That's everything collected to the military actions now. And the realization of peace plan signifies for them

part of what? Because my first priority will be restoration of their work.

So in eastern part of Ukraine, have place to go back to, to have their dwellings, government will help them and also restore the intercity. It

was completely destroyed by the bandits.

The signature of the cessation agreement signifies for them new investments, new rules without any corruptions, new markets, the best,

biggest markets in the world. And at the same time, I think, I foresee that we will not lose any markets that we were present before, including

the Russian market.

MODERATOR: Ukrainian, please.

QUESTION (through translator): Thank you, Alexander Bororenko (ph).

CLANCY (voice-over): All right. We've been listening there as President Petro Poroshenko of Ukraine has been addressing questions from

reporters as he made some important announcements following the historic agreement between the European Union and his country, Ukraine, an agreement

that, on one hand, offer new opportunities in Europe for Ukraine; but at the same time, could potentially threaten Russia's ties with Ukraine,

Russia looking on with a nervous eye.

Our correspondent on the ground, Diana Magnay, has been covering the conflict and the politics inside throughout the crisis. She joins us now

live from Berlin -- Diana.

DIANA MAGNAY, CNN CORRESPONDENT: Hi, Jim. Well, I think what's interesting from hearing Petro Poroshenko talk is his enthusiasm that -- or

his belief that this shift towards Europe will not compromise Russia's economic ties with Ukraine or Ukraine's economic ties with Russia.

And he is insisting that they will be able to reach some kind of compromise, that opening the door to Europe will not mean closing the door

to the Russian market.

Now Russia has not been making quite such a positive assessment, really, of today's step. It remains to be seen what they will do. But

even when Viktor Yanukovych, Mr. Poroshenko's predecessor, was talking about this association agreement last year and moving towards it, Russia

slapped on tariffs on Ukrainian goods. We know that they are also putting pressure on goods from Georgia, from Moldova, who have also signed

association agreements today.

All of this because Russia does not like this feeling that Ukraine, Russia, Georgia and Moldova are all slipping away from its sphere of

influence and that has been the line throughout this escalating conflict from the moment when Mr. Yanukovych pulled out of that association

agreement last November and in fact before it also.

I think the other important thing to note about what Mr. Poroshenko has been saying is really the scope of what this association agreement

means, that it is more than just an economic deal that opens up markets for Ukraine, that it really is about imprinting Ukrainian civil life with the

values that Europe stands for, so democracy, freedom, rule of law, that this is a step that will bring Ukraine into line with what all the other

people in Europe, here in Germany, throughout Europe, have taken for granted and which the Ukrainian political life has suffered and which is

why people went out onto the Maidan back in November, to get rid of corruption, to establish a rule of law that they could all believe in.

So this is a very historic moment for Ukraine, but it will be a long process for all of those things to be achieved and it will also depend on

how this current conflict does manage to resolve itself and what role Russia plays going forward -- Jim.

CLANCY: You know, President Poroshenko talked extensively about the Poroshenko peace plan and talking about reconciliation, talking about

negotiations, talking about Ukraine regaining control of the Donetsk region, where there has been fighting.

What is the situation on the ground and are opponents, is the opposition, armed opposition there willing to engage in that peace plan?

MAGNAY: Well, the positive points that you can take from this week's supposed cease-fire, which hasn't really been a cease-fire at all from the

pro-Russian side. There have been numerous incidents, including a Ukrainian helicopter being shot down with all nine inside being killed.

But four of the OSCE observers have been released. There are four more who apparently may be released in the coming days and weeks. That is

a good sign. The fact that the Russian president has asked the parliament to revoke his right to send in troops, that is another good sign.

These are expressions of goodwill. The fact that pro-Russian militant leaders in Donetsk are actually sitting down at the same table with

Ukrainian government officials is also a positive.

But it is not anywhere close to the cease-fire actually being that 14- point peace plan. At 10:00 pm tonight is the deadline for when that cease- fire expires. We'll see whether Mr. Poroshenko extends it. He says he's committed to peace, but clearly we need to be -- see more coming from the

rebel side before we can even be talking about peace -- Jim.

CLANCY: Diana Magnay on this historic day for Ukraine, a much discussed, debated and sometimes criticized deal, cooperation deal between

the European Union and Ukraine, moves ahead.

Diana, as always, thank you for your coverage on this story.

Well, now let's go to our other main story and that is, of course, Iraq. Prime Minister Nouri al-Maliki telling the BBC Iraq will buy second-

hand fighter jets from Russia and Belarus and use them in the fight against ISIS militants.

(BEGIN VIDEO CLIP)

CLANCY (voice-over): Violence is escalating across much of Iraq. The military spokesman is insisting Iraq's largest oil refinery is now

completely under the government's control following days of fighting there.

Iraqi forces are also battling militants in Tikrit at its university. And in Baghdad a bomb hits the mainly Shia Khadamiyah neighborhood late on

Thursday; 19 people lost their lives in that bombing. And the fighting is raging as diplomatic efforts continue.

(END VIDEO CLIP)

CLANCY: U.S. Secretary of State John Kerry meeting the Saudi King Abdullah and a Syrian opposition leader today following talks in Paris on

Thursday.

Now the ISIS militants fighting in Iraq right now are of course Sunni. Some say the prime minister has contributed to the country's ethnic divide

and conflict by favoring his fellow Shia Muslims over Iraq's Sunni and Kurd minorities. Two long-time friends, one Sunni, the other Shia, say the

government should follow their example. Nic Robertson has their story.

(BEGIN VIDEOTAPE)

(LAUGHTER)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Childhood friends, Rad and Abbas, one a Sunni, the other a Shia, wish they

could be in a roadside cafe, enjoy a relaxing coffee together the way they used to. But these days it's too dangerous. Sunni radical ISIS is

sweeping the country and a Shia sectarian backlash seems imminent.

"We hope it's not going back to sectarian violence again," says Rad, "like it was in 2006-2007."

"There are gangs who do that sectarian violence just for money, no more, no less," Abbas adds. "They're wanted again."

Their wives' fears run deeper. Nadya is Abbas' wife.

"My children have no future," she says. "I had to stop my daughter going to school because of bad security, like a sudden bombing."

Syrah is married to Rad. With soldiers for sons, much to fear.

"They have not seen anything good in this life," she says. Two of them are in the military and the other two in school. "We just need more

security and stability."

The families are neighbors, shared good times and now the bad: power cuts, summer heat and uncertainty, a suspect car bomb on the street outside

their apartment, an unpredictable daily churn, grinding everyone down. They all want the same thing.

"We have no objection of who will rule Iraq," Rad says. "But he should apply security."

"Sunnis and Shias are together," Abbas says. "We're looking for a solution. It is security, is what we need."

But they look at themselves and their families for how it can be done, both men married outside their sect. If they can hold it together as

hundreds of thousands of other Iraqis do, bonded by friendship and marriage, why not the country's politicians?

"The government are always in the problems," Syrah says. "But the only losers is the Iraqi people. We need a solution."

The alternative: a sectarian rift that risks tearing the country if not friends and families apart -- Nic Robertson, CNN, Baghdad, Iraq.

(END VIDEOTAPE)

CLANCY: You're watching NEWS STREAM.

The man who came to the World Cup is Uruguay's star, playmaker, is now leaving the tournament and you've got to say leaving in shame. We have

reaction to Luis Suarez's forced exit.

Plus it's a graphic lesson for these elementary school children, how to hunt whales. We'll bring you the story of how the tradition is being

carried on in Japan despite mounting condemnation.

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CLANCY: You're with NEWS STREAM. Welcome back.

Uruguay is going to be facing off against Colombia in the knockout round of the World Cup on Saturday. It will not have its star player on

board.

(BEGIN VIDEO CLIP)

CLANCY (voice-over): Striker Luis Suarez has left Brazil. FIFA banned him from nine international matches. He's also suspended for four

months from any kind of football activity. That, of course, after he bit one of his Italian opponents at a match on Tuesday.

Under the ban, Suarez will miss the rest of the World Cup and a good part of the English Premier League season as well. He's also losing a

sponsor, the online betting company, Triple 8 Poker.

(END VIDEO CLIP)

CLANCY: Now Suarez may be out, but he got a big show of support as he arrived back in his home country. Let's get more on that from CNN's Isa

Soares in Rio de Janeiro. She's outside the Uruguay team's hotel there -- Isa.

ISA SOARES, CNN CORRESPONDENT: Hi, Jim. Yes, the team arriving yesterday late last night, looking pretty glum without their star player,

Luis Suarez. There will be training the next few hours. We're expecting to see them leave shortly. We know that as you said in last -- in the next

24 -- less than 24 hours in fact they will be facing off against Colombia, who, by the way, is -- are also staying -- the team are also staying in

this hotel.

But the calls -- the calls, the shouts, the screams, whatever you want to call it against FIFA have been growing louder. The federation of -- the

Uruguayan football federation saying they will mount an appeal. They have a period of three days. They're going to lodge the appeal with the court

of arbitration, the sport, they argue that the actions, that the decision by FIFA was too excessive, they went on to say. There was not enough proof

to really show this is exactly what he did and the same token, they also said there have been further incidents that are aggressive; they should

also require the same similar -- the same type of punishment now. Back at home in Montevideo, fans were waiting for him late last night. Luis Suarez

did not arrive. We've been told he has arrived this morning, a private plane, but no one has seen -- has seen him now.

Fans were waiting; even the president of Uruguay was waiting for his arrival. Many people holding these banners, anti-FIFA banners, basically

saying that it's too excessive, what they felt was an act of immaturity. Went on to say that really many of them blaming the Italians and the

British for what they -- a conspiracy against Suarez.

Now Wilmer Valdez (ph), who is the president of the Uruguayan football association, has called on fans to continue supporting the Uruguayan team.

Take a listen.

(BEGIN VIDEO CLIP)

WILMER VALDEZ, PRESIDENT, URUGUAY FOOTBALL ASSOCIATION (through translator): There isn't definitive evidence that allows us to say that

this kind of sanction can be applied. We are talking nine games, four months and a financial penalty. So to me, it really seems like a

completely exaggerated and abusive sanction.

(END VIDEO CLIP)

SOARES: Jim, and he went on further to say as well as that sound bite that he said that's the way we play. We are slightly aggressive. That's

the way the Uruguay play, really hinting again at this conspiracy that you've been reading about in the Uruguayan press, that it is an Italian and

English conspiracy against Suarez.

Now in the last hour to complicate matters further, the victim of the biting incident, if you remember, Chiellini, Giorgio Chiellini, he's

actually come out with a statement and he said there are no feelings of joy or revenge or anger against Suarez. If we bring up exactly the words he

said, I want to read them out to you.

He went on to say -- this is Giorgio Chiellini, if you remember, the Italian player, he said, "I have always considered unequivocal the

disciplinary interventions by the competent bodies, but at the same time I believe that the proposed formula is excessive.

"I sincerely hope that he will be allowed, at least, to stay close to his teammates during the games because such a ban is really alienating for

a player."

Words there from Giorgio Chiellini, the Italian player, who was bitten by Luis Suarez, really no doubt will -- the cause will grow within the

Uruguayan team for a ban to -- you know, to be dropped against him, already one of the Uruguayan papers, Jim, offering free posters of Luis Suarez,

saying, "Todos Somos Suarez," "We are all Suarez" -- Jim.

CLANCY: Yes, you know, blaming the media in Britain and Italy, talking conspiracy, there hasn't been a lot of the Uruguayan media that has

accepting some of the responsibility here. And Suarez, of course, is trapped by the videotape and by the sentiments of the rest of the people

involved in football around the world.

Isa Soares, I want thank you very much. We've got to break it off here.

We're going to return to our top story on Ukraine right now. We're hearing from Russia's Foreign Minister, Mr. Lavrov. I want to hear what he

has to say about the Ukrainian-E.U. deal just signed.

SERGEY LAVROV, RUSSIAN FOREIGN MINISTER (through translator): The federalization, that is not important. What is most important is the

essence and then to present the project to the commission, to the committee and so on. Therefore, the situation is very strong important situation. I

hope that the statement on the statute of 72 hours and all those contacts which represent Kiev of the southeast of Russia in these hours should be

continued and lead to longer lasting settlements and not certainly to have respective dialogues which makes it possible to participate in the

interests of the citizens who live in the southeast of Ukraine.

So this can be assured for them. Thank you.

Thank you. Thank you, colleagues.

CLANCY (voice-over): Sergey Lavrov there, Russia's foreign minister, making some comments.

CLANCY: Earlier he had said that they want to extend the cease-fire there, try to support it on the ground there in Eastern Ukraine. But there

at the very end you heard him saying Russia's got to be involved in any discussion of even in Eastern Ukraine because of the number of people there

who support the view that Ukraine should have closer ties with Moscow.

Obviously the Russians not pleased by this E.U.-Ukraine deal that was just announced and signed hours ago at the same time they have to look at

the situation realistically and see how it's going to shape up and see what kinds of ties can be forged.

Will President Poroshenko keep his word and keep ties with Russia remaining strong, not changing the current status of trade with Moscow?

We're going to take a short break. But up next, right here on NEWS STREAM, harrowing images like this one emerging from Japan every year, this

year's whaling season no different, despite an international court ruling. We'll have more on that right after this break.

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CLANCY: You're with CNN NEWS STREAM.

Japan pressing ahead with its first annual whaling season since an international court banned Japanese whaling in the Antarctic. The court

said it lacks scientific merit and conservationists are outraged that Japan is continuing the tradition a lot closer to home. Will Ripley has a report

-- and a warning, some may find the images here disturbing.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN CORRESPONDENT (voice-over): This scene has played out for centuries along the Japanese coast, a freshly hunted 10-ton whale

carved, cooked and served to the young children watching and learning

"It's gross. I feel sorry for it," says this 10-year old on a school field trip. "But we're going to eat it, right? It's complicated."

Complicated and controversial, international outrage that comes with each whaling season has done little to stop Japanese whalers from proudly

defending their tradition.

"We've been eating them for 400 years," says local whaling company president Yoshinori Shoji (ph). "Now foreigners are telling us to stop.

Do they have that right?"

Patrick Ramage with the International Fund for Animal Welfare, tells CNN, "Respect for cultural differences is fundamental, but friends of Japan

and fans of Japanese culture around the world are watching this with sadness.

"Japanese schoolchildren should be meeting whales through whale watching, not eating whale meat," he says. "It's 2014, time for Japan to

move on and join the community of nations that have migrated from killing whales to conserving them."

In March, the International Court of Justice ordered Japan to stop what it calls scientific whaling in the Antarctic. But coastal whaling

like this is exempt and these whalers are fighting to keep what some consider a dying industry alive.

"For us, whales are a source of food," Shoji says. "We want future generations to continue what we've been doing."

Which is why these kids are getting a lesson and lunch as Japanese whalers keep pushing against a strong current of criticism -- Will Ripley,

CNN, Tokyo.

(END VIDEOTAPE)

CLANCY: Coming up on NEWS STREAM, Ukraine's sealing a deal with the European Union. So how is Russia responding? We're going to get more live

from Moscow.

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CLANCY: Welcome back, everyone. You're on the NEWS STREAM. I'm Jim Clancy and here are your headline stories right now.

(BEGIN VIDEO CLIP)

CLANCY (voice-over): Ukraine's president, Petro Poroshenko, signing a sweeping political and economic agreement with the European Union. His

predecessor's decision not to sign that very same deal sparked a revolt in the streets and a pro-Russian separatist rebellion.

Today's agreement marks a major shift for Ukraine away from Russia. The Kremlin reacting to the signing said this, "Russia will undertake its

measures if its markets are negatively affected."

Iraqi Prime Minister Nouri al-Maliki says Baghdad will buy second-hand fighter jets from Russia and Belarus to battle ISIS militants. He tells

the BBC he hopes they'll be ready to fly within a week. He also slammed Washington, saying Iraq was deluded when it signed a contract to buy U.S.

jets.

Luis Suarez arriving home in Uruguay after FIFA banned him from the rest of the World Cup. He was met by large crowds cheering outside the

airport. FIFA suspended Suarez in a biting incident against an Italian opponent during that match on Tuesday.

(END VIDEO CLIP)

CLANCY: Now for more on Russia's reaction to Ukraine's historic deal with the E.U., let's go to Moscow and bring in our own Phil Black live.

Phil, what's the reaction to this signing?

PHIL BLACK, CNN CORRESPONDENT: Well, Jim, we know that Moscow doesn't like this deal, never did. And really it was Moscow's attempts to stop

this from becoming a reality that triggered all the momentous events that we've seen take place in Ukraine, stretching back to November, when the

former president, Viktor Yanukovych, under significant pressure and incentive from Moscow, knocked back the deal or said he wouldn't be signing

it. We know that triggered the protest movement, the revolution that followed. Russia's annexation of Crimea and now this armed uprising in the

east of Ukraine as well.

Russia's objection to this deal is really twofold, its principle dislike is the change that it makes. The really seismic shift to the

political landscape of this region because it moves Ukraine, a large nation that had always been a big part of Russia's sphere of influence, beyond

that sphere of influence, formally aligning it with the European Union.

But the argument that Russia makes publicly is an economic one. It says that it is worried about cheaper, perhaps high-quality, more

efficiently produced Western goods flooding the Ukrainian economy and market and then eventually making their way across the border into Russia

as well, impacting Russian businesses and producers and the Russian economy.

And so when Russian officials today say they're talking about preparing to take measures, they're talking about protected trade measures,

putting up some sort of obstacle along the border that will restrict just what goods could be exported from Ukraine to Russia; Russia says with the

intention of protecting the Russian economy.

To what extent will concrete moves they're going to take? We don't know just yet. They haven't announced anything in advance. Perhaps

they're waiting to see just what impact this does have on the Russian economy -- Jim.

CLANCY: Well, Phil, as we just listened a few minutes ago to Sergey Lavrov, foreign minister, speaking, he had some rather -- well, I thought

they were surprising comments about what he expected as Russia's role in Eastern Ukraine.

BLACK: Well, Russia believes it still has a role. It's very much changed its tune in terms of trying to -- or in its approach to Eastern

Ukraine over the last month or so. It's recognized the country's new president; it's pulled back those tens of thousands of troops from the

border just the other day. Russia's parliament rescinded the president's authority to use military force in Ukraine. And Russia, the president, the

foreign minister, all speak very encouragingly, supportingly, of the cease- fire that has been declared by the Ukranian government, and the end of attempts to negotiate directly or almost directly, using go-betweens,

between the leaders of those separatist and pro-Russian groups and the Ukranian government as well.

But Russia believes it has a role to play. Russia believes it is -- has an obligation to ensure the rights of the Russian speaking and

culturally Russian peoples of those region. And so that is why Russia is still very much pushing for constitutional change. And the sort of result

that will ultimately, it says, recognize the rights and the desires of the peoples in those regions.

Take a listen now to a little more of what Sergey Lavrov said on this just a short time ago.

(BEGIN VIDEO CLIP)

LAVROV (through translator): Russia, the United States, Ukraine and representatives of the European Union, say that the constitutional process

must be inclusive. It must include all parties. It must be transparent and it must be supported and so that it quickly leads to the participation

of all regions of Ukraine. That was not present and that is why Russia must be part of this Geneva declaration.

(END VIDEO CLIP)

BLACK: Sergey Lavrov, the Russian foreign minister there, referencing the Geneva agreement. It was an international peace plan thrashed out

months ago to try and solve the Ukrainian crisis. It didn't really get anywhere, but a key part of it was the need for constitutional reform,

reflecting the rights and freedoms and, to some extent, evolving power from the central government in Kiev.

This is something that all sides of this conflict still agree on. But to varying degrees. Russia is pushing for these regions to have greater

freedom from Kiev than Kiev actually wants.

But the key point here is that Russia is being more constructive, at least openly, publicly, in dealing with the Ukranian government, expressing

its desire to try and achieve peace.

But while it is doing that, Western countries believe very strongly that Russia is still not doing enough, it is not exercising its leverage

with those separatists and pro-Russian forces to really try and get them to put down their weapons and stop fighting.

And they also believe that Russia is not doing enough to stop weapons and fighters crossing the border from Russia into Ukraine.

Their belief that Russia is not doing enough is such that that is why they are still getting together, organizing another round of economic

sanctions, bigger, tougher than those that have been targeted against Russia before. These would go against whole sectors or specific economic

sectors, industries, not just individuals and institutions like those that have been implemented to this point.

At the moment, they're sitting on the sideline, a weapon ready to be used if the West decides to pull the trigger. So far they say they're not

doing that. But it's there, ready to go if they believe it's necessary -- Jim.

CLANCY: Phil Black there with some great perspective on why this matters, the fact that this amounts to a seismic shift, as Phil put it, in

the geopolitical status of Ukraine, shifting towards the European Union and away from Moscow.

Phil, as always, great to have you and your reporting.

Well, the U.S. is stepping up its support for opposition fighters in Syria on paper, at least. The Obama administration is seeking $500 million

from Congress to train and equip what it calls vetted elements of the moderate Syrian armed opposition. A spokeswoman said the funds would help

stabilize areas under opposition control, provide essential services for Syrians and counter terrorist threats.

Israeli authorities have identified two Hamas activists that they say are the ones behind the disappearance of three missing Israeli teenagers.

Those three teens were kidnapped from Jewish settlements in the West Bank about two weeks ago. Since then, Israeli forces have conducted an

extensive and sometimes deadly operation.

Ben Wedeman is there.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): Residents of the Qalandia Refugee Camp prepare for the return of Mustafa

Aslan. He died Wednesday morning from an Israeli gunshot wound to the head six days before.

In his home, grief and anger combine.

"He had a small child," cries his sister, Fatin, "who had yet to call him papa. Shame on them."

An Israeli sniper shot Mustafa during a raid on the camp. The trail of dried blood is still visible on the roof of his home.

Israeli forces entered the camp at night as part of the West Bank operation searching for three Israeli teenagers who went missing June 12.

The first to be killed in the operation was Ahmed Sabbarin, a resident of the Jalazon refugee camp near Ramallah. In both cases, the Israeli army

says their soldiers used deadly fire when their lives were endangered.

Whatever the case, another Palestinian family is left mourning.

"Enough!" demands his father. "Enough! You've killed our children!"

Outside the West Bank city of Hebron, Israeli troops go from house to house. More than a 1,000 homes have been searched, including that of Ahmed

Qawasmeh.

"They threw everything," he says, "the beds and clothing, onto the floor."

It's the same house after house.

UNIDENTIFIED MALE: Seven times.

WEDEMAN: Seven times they searched your house?

UNIDENTIFIED MALE: Yes.

WEDEMAN: And did they find anything?

UNIDENTIFIED MALE: No. No.

WEDEMAN (voice-over): The soldiers scan from the rooftops and search through junkyards in an operation the Israeli army says will spare no

effort to return the boys.

WEDEMAN: This is the largest Israeli military operation in the West Bank in more than 12 years. It's been going on now for two weeks, and

still no sign of the three missing teenagers.

WEDEMAN (voice-over): And the longer the search goes on, the more tensions rise.

At the Israeli checkpoint near the Qalandia refugee camp, boys stone the watchtower charred black from countless clashes over the years.

Rocks and bottles fly in one direction. Tear gas and rubber bullets in the other. Israelis and Palestinians locked by a seemingly endless

cycle of action and reaction in a deadly embrace -- Ben Wedeman, CNN, Qalandia on the West Bank.

(END VIDEOTAPE)

CLANCY: Coming up right here on NEWS STREAM, a massive exodus is underway in Pakistan. Nearly half a million men, women and children

fleeing their homes. Find out why just ahead.

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CLANCY: A mass exodus is underway from Pakistan's volatile region of North Waziristan, bordering Afghanistan. The Pakistani military has

launched a full-scale offensive against militants there. And now hundreds of thousands of men, women and children are caught in the crossfire and

they are fleeing for their lives.

Saima Mohsin has our report.

(BEGIN VIDEOTAPE) SAIMA MOHSIN, CNN CORRESPONDENT (voice-over): In the heat and dust,

hundreds of men line up to collect food and oil provided by the World Food Programme to take home to their families.

A dust storm swept through the town of Bannu when our team arrived with temperatures reaching almost 60 degrees Celsius. But for most, even

this storm is a refuge from what they fled from, fierce fighting between Pakistan's military and Taliban militants in the remote tribal areas.

Their journey to Bannu has been long and arduous.

"We have walked for two days to get here, all the way from North Waziristan," this man tells me. "It was difficult and full of pain. We

need the government to help us."

But here, too, security forces must watch over the humanitarian effort to ensure everyone's safety. Most of these families now living with the

label "internally displaced people" or IVPs, are staying with relatives or renting houses in town.

A short drive away is the only camp set up by the government. The camp in Bakkakhel is what authorities like to call a model village. But it

resembles a ghost town. It wasn't ready when the first influx of people arrived. Now it's fully functional, but only 28 families are staying here.

Some of the most impoverished of thousands that have fled North Waziristan.

"We arrived barefoot," says this man, "after spending a night on the road. We left Miramshah because we were distressed. There was bombing

from planes and helicopters flying above us. But thankfully we have all we need at this camp."

Authorities are also taking the opportunity to administer polio drops. The Taliban has banned the vaccination in the tribal areas, depriving young

children of the vaccine, making Pakistan one of only three countries where polio remains endemic.

Children play out in the heat of the campsite here, their lives turned upside down by the fighting. In the hospitals surrounding Bannu, it's the

children who are suffering the most. At Khalifa Gul Nawaz Hospital we found exhausted children and babies, many of them suffering from a measles

outbreak.

DR. AMAN MALIK, KHALIFA GUL NAWAZ HOSPITAL: Most of the children were dehydrated. They were not taking food. They were not taking even fluid

because the journey (INAUDIBLE) 30-40 millimeters but it's that it was hard on these people, who spent more than three days.

MOHSIN (voice-over): These families have fled their homes, their jobs, their lives with only what they're wearing. But they cannot return,

not anytime soon. The military says it will fight until it has flushed out all foreign and local militants from North Waziristan. This, it says, is a

fight for Pakistan's survival -- Saima Mohsin, CNN.

(END VIDEOTAPE)

CLANCY: Well, you know, we've been talking a lot about Luis Suarez and his suspension. But after the break, it's time to talk about the

actual football at the World Cup -- I promise.

(BEGIN VIDEO CLIP)

CLANCY (voice-over): Algeria, they made history. They're through to the knockout stage of the World Cup for the very first time ever. We're

going to have all of the highlights for you straight ahead.

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(COMMERCIAL BREAK)

(MUSIC PLAYING)

CLANCY: While the Luis Suarez saga was grabbing all of the headlines on the final day of group play at the World Cup, here's what was actually

happening out on the pitch.

The U.S. qualified for the next round despite losing 1-0 to Germany. Germany clearly outclassed them. Thomas Muller scored his fourth goal of

the tournament to send the Germans through as group winners.

But neither Portugal nor Ghana could take advantage of the American slip. Portugal took the lead, thanks to known goals. Nothing less than a

win would do for Ghana. And they hit back in the second half of this header from Asamoah Gyan. It kicks off a frantic finish as both teams

chase after goals. Portugal needed to win by a large margin while Ghana, well, they just needed to win. Ghana's goalkeeper made a critical error

late on and Cristiano Ronaldo rifled home his first and only goal of this World Cup.

Portugal wins, but even that wasn't enough. Those there was a little controversy in the match between Russia and Algeria, you can see a green

laser shining on Russia's goalkeeper there. Russia blamed that, a laser, for distracting him at a critical time. Algeria drew the match 1-1,

sending them through along with Belgium.

So the last 16 of the World Cup all set; here are the matchups. There are only six European teams matching the record low set at the last World

Cup. But for the first time ever, there are two African teams in the last 16. The second round kicks off with the host, Brazil, on Saturday.

Well, how's the weather going to be for all of this? Let's find out by going over to the World Weather Center and checking in with our own

Samantha Mohr -- Samantha.

SAMANTHA MOHR, AMS METEOROLOGIST: Hey, Jim. Boy, yes. Yesterday was a wet one. We watched that U.S. match against Germany with the rain

throughout much of the match itself. But you can see improving conditions along the coast today, still very wet here to the south, though. So we'll

continue to watch those rainfall amounts, a tally up here today, an impressive amount.

The past 48 hours here along the east coast and to the south, 214 millimeters fell on arrivers though. So amounts like that have been

commonplace lately at that trough continues to set up.

Now here in Recife, that's where we saw all the rainfall during the match yesterday. In fact, 108 millimeters fell, making it the rainiest day

so far in 2014 and it just happened to coincide with the big match between the U.S. and Germany. And scenes like this commonplace, wet hair, wet

jerseys and just a lot of rain falling across the area.

So that was inside the stadium. And then outside the stadium, folks trying to get there were dealing with this, a lot of stranded motorists

here in Recife. Things have improved, though, however. So looking at the current conditions across much of Brazil, things are actually drying quite

comfortable. And they're now -- so we're at 25 degrees in Cuiaba, we're at 24 and in Rio 24 degrees with the sunshine, where we're getting ready for a

big matchup tomorrow. Also Belo Horizonte, things are looking great with temperatures a little on the warm side, right around 27 degrees. But that

afternoon game should be looking very sunny. So a lot of sunscreen and good hydration will be necessary here in Belo Horizonte.

It'll be nice and dry with light winds and then we're going to be looking at conditions for Rio de Janeiro for the match, a little bit later

on in the day, Colombia versus Uruguay. We're looking at temperatures right around 25 degrees with light winds as well, relative humanity close

to 70 percent. So pretty ideal weather as we head into Saturday's matchup.

Now we'll continue to watch the rain here. And now as we head into the next 48 hours also off to the south and Curitiba and Porto Alegre,

that's where the wettest weather has been setting up here along that trough of low pressure.

So temperatures for those on this west day. Pretty comfortable across most of Brazil, a little bit warmer, of course, once you get on up to the

north here, around Fortaleza. That's where those folks out recreating, trying to get a little bit of rest. The weather's pretty much ideal and

that's the case here on Saturday, too, temperature wise with those temperatures in the mid-20s in Rio and then Belo Horizonte, right around

the upper 20s, Brasilia 28 degrees.

So hopefully they'll get in a good rest day today, Jim, and they will be back at it as we head into Saturday with some terrific weather expected

for those matchups.

CLANCY: All right, Samantha. Thank you for that.

MOHR: You bet.

CLANCY: And that is NEWS STREAM for me, Jim Clancy, and the entire team, Samantha Mohr, of course, as well as Diana Magnay, Phil Black and

Saima Mohsin. I want to thank you all for spending a part of your day with us. "WORLD BUSINESS TODAY" is straight ahead.

END