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CONNECT THE WORLD

Historic Loss For Democrats, as Republicans Flip Senate; November 9 Marks 25th Anniversary Of Fall of the Berlin Wall; African Startup: Supermart Nigeria; Mexican Mayor, Wife Accused of Masterminding Student Abductions; American Arrested in UAE Over Photograph; Germany Commemorates 25th Anniversary of Fall of Berlin Wall; Car of the Revolution; Hamas Praising Jerusalem Attack; Jordan Recalls Ambassador to Israel; India Hoping to Attract Foreign Investment

Aired November 5, 2014 - 11:00   ET

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


BECKY ANDERSON, HOST: A day in Jerusalem that started like this and culminated in what Israel is calling a terror attack by a Palestinian van

driver.

We're live tonight in a city where tensions are boiling over.

And I'll speak live to a Jordanian government spokesman as his country pulls its ambassador from Israel.

Also ahead, forget the red south, U.S. Republicans hold and gain ground along the eastern seaboard and take full control of congress.

And 25 years on, we'll also remember the fall of the Berlin wall.

ANNOUNCER: Live from CNN Abu Dhabi, this is Connect the World with Becky Anderson.

ANDERSON: A very good evening from the UAE. It is 8:00 in the evening here.

Palestinian militant group Hamas is praising a deadly attack in Jerusalem. A police officer was killed and 13 people were injured when a

van crashed into a crowd. The driver then got out of the vehicle and began striking people with a metal bar. He was shot dead by police, then later

identified as a member of Hamas.

And earlier, there were violent clashes between Palestinians and Israeli police at the holy sight Jews call the Temple Mount and Muslims

refer to as the Noble Sanctuary.

Well, the unrest has led Jordan to recall its ambassador to Israel and make a complaint to the UN security council.

Well, for the latest, Erin McLaughlin joins me now from Jerusalem. What do we know about this attack?

ERIN MCLAUGHLIN, CNN CORRESPONDENT: Well, Becky, new surveillance footage shows the moment the suspect drove a van into a light rail station.

You can actually see three border police lying on the ground. The driver would later go on to strike several other pedestrians as well as vehicles

before stopping at an intersection, at which point Israeli police say the man got out of the vehicle, waving an iron bar, threatening to attack

other passerbys before being shot. Eyewitnesses saying they heard some 20 shots fired, shot and killed, later identified as a Palestinian from East

Jerusalem by the name of Ibrahim al-Acari (ph).

Now this is the latest attack in a wave of violence that Jerusalem has seen in recent months. Earlier this morning, there were clashes at the

Noble Sanctuary or Temple Mount. I was there for some of the clashing. Police were trying to clear out an area around one of the gates. They were

using stun grenades and rubber bullets, clearing out the area of worshipers. Israeli police saying that earlier police were attacked by a

group of Palestinian youths who had firecrackers and stones.

And really that kind of clashes has become relatively commonplace around the site and in Jerusalem. Tensions around the Noble Sanctuary or

Temple Mount really peaking last week with the closure of the site for the first time in some 14 years, that following the attempted murder, a far

right rabbi Yehuda Glick.

Glick had been hosting an event in Jerusalem calling for more Israeli Jews to be able to pray on the Temple Mount, effectively a change to the

status quo. And there's great concern among senior Muslims in Jerusalem about a potential change to the status quo about the increasing pace of

visits from the Israeli far right to the site and we're seeing this an arrest in part, Becky, as a result of that.

ANDERSON: Erin McLaughlin on the story for you.

I'm going to do more on this as we move through this next hour.

As promised, we should have the -- one of the Jordanian government spokesmen, if not the foreign minister, on the line at some point. We'll

get to that as and when we can. Reminding you that the Jordanians have recalled their ambassador to Israel over the al-Aqsa mosque clashes.

Well, the winds of change roared across the United States on Tuesday. Now the political landscape looks very different. Republicans will be in

control of both houses of congress come January. They've gained seven seats in the senate, putting them in the majority there for the first time

in eight years with 52 seats, Democrats have 45.

Only a few races are still undecided.

Well, Republicans also strengthened their majority in the House.

The Senate minority leader who could soon become the new majority leader spoke about what this means for the country.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL, (R) KENTUCKY: Tonight turns a corner. And the future I see is a bright one. Americans have seen that what the current

crowd in Washington is offering is making us weaker both at home and abroad. They have had enough.

(END VIDEO CLIP)

ANDERSON: Well, the Republican candidates running for a governor also had a good night.

Andrew Spencer taking a look at the major races across the country.

(BEGIN VIDEOTAPE)

ANDREW SPENCER, CNN CORRESPONDENT: Businessman David Perdue avoided a runoff, winning a highly contested Senate race in Georgia.

DAVID PERDUE, (R-GA) SENATOR-ELECT: The only reason I think we're standing here tonight is that this message resonated across the state that

we've got to change the direction of our country.

SPENCER: Republicans were projected to win several other key victories in the U.S. Senate. Congressman Cory Gardner in Colorado, for

example. And North Carolina state congressman Tom Tillis, both of them over first-term incumbent Democrats.

The GOP shifted the balance of power in Washington Tuesday, giving Republicans control of both chambers of congress for the first time since

the Bush administration.

CORY GARDNER, (R-CO) SENATOR-ELECT: Tomorrow, we go to work to fix a Washington that is out of step, out of touch and out of time.

SPENCER: Beyond the Senate, CNN also projected Republicans would expand their majority in the U.S. House to a level not seen since World War

II. Gubernatorial races also went largely toward the GOP with Massachusetts electing its first Republican governor since Mitt Romney,

Maryland selecting Republican Larry Hogan. Even President Barack Obama's home state of Illinois ousting Democrat Pat Quinn in favor of Republican

Bruce Rauner.

I'm Andrew Spencer, reporting.

(END VIDEOTAPE)

ANDERSON: Well, investors, meanwhile, do seem to fairly happy with the election results. The Dow, let's have a look at that, setting today

record a short time ago. Remaining in positive territory, you can see there, plus 65 odd points, up about a third of one percent. And the S&P

500 and the tech heavy NASDAQ also higher. We'll be following those numbers throughout Tuesday. And we'll have a final tally in Quest Means

Business, of course.

And we'll have more coverage of this political earthquake in Washington later on Connect the World.

What can the international community now expect from a deeply divided Washington?

Well, John King is going to join me to lay out the implications of the political shellacking that Republicans have delivered to Democrats on

Capitol Hill and across the nation.

Right, it was one of the defining symbols of the Cold War and this Sunday marks 25 years since the Berlin Wall fell.

After decades of being forced apart, families and friends on the two sides of Germany were finally reunited, of course.

CNN was there as the first pieces of the wall were hammered down. CNN's Fred Pleitgen spent his childhood in Cold War Berlin. His father was

a journalist for West German TV inside East Germany. Fred sharing with us his family's struggles through that period.

(BEGIN VIDEOTAPE)

FRED PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: A drive through the Leipziger Strassa in Berlin is is like a journey back in time for me.

My dad was a correspondent for West German TV DRD (ph) in East Berlin. And we lived right here on this street.

Fritz Pleitgen, ran the bureau in East Berlin from 1977 until 1982, one of the people the Communist regime feared most.

FRITZ PLEITGEN, JOURNALIST: It was war of airwaves, even more than a military war, because there was a competition between East Germany and West

Germany.

FRED PLEITGEN: We went back to our old house together to talk about the old days that I can barely remember, but that were among the most

challenging of his career.

This video was provided to CNN by the West German broadcasting company. It shows my dad and his crew getting harassed by East German

agents while trying to interview the author and opposition figure Stefan Heim (ph) in 1979.

FRITZ PLEITGEN: They wanted to stop our contacts with the East German population. That was a nightmare that there could be an alliance of West

German correspondence with the people of East Germany.

FRED PLEITGEN: Many who talked to western media were jailed, the reporters constantly observed.

On videos like this one, the East German secret police showed their spying methods. They did the same to us. Their code name for my father

was The Tiger.

FRITZ PLEITGEN: They broke in, into our flat, but also in our office. They took pictures and sometimes they wanted to show me that they were in,

that I got the impression well I'm observed.

FRED PLEITGEN: Imagine trying to raise a family, first with three and later with four children in that kind of environment.

What was family life like? Because to me it was always -- it seemed very nice, but I'm sure to you and especially mom, it wasn't that great.

FRITZ PLEITGEN: Yeah, it wasn't two easy for your mother. She had always real problems with the border guards. And she was not ready to talk

them -- to them smiling, because she hated their questions.

FRED PLEITGEN: But our family story also shows how far Germany has come since the fall of the wall. Those ruins behind us on this family

picture from 1980 looked like this today.

FRITZ PLEITGEN: This was the most desolate square in whole Europe. It was lost. And now it has changed into the most beautiful square of

Germany.

FRED PLEITGEN: And the western reporters, so dreaded by the communist leaders, played their part, making Germany's peaceful unification possible.

(END VIDEOTAPE)

ANDERSON: And we'll get back to Germany later this hour.

(BEGIN VIDEO CLIP)

JIM CLANCY, CNN CORRESPONDENT: Everyone knew they were witnessing history, but that didn't stop us from turning to one another and asking can

we really be seeing this happening?

(END VIDEO CLIP)

ANDERSON: CNN's Jim Clancy covered that momentous day for CNN. And later this hour, he reflects on the very point when that wall came down.

First, though, we're going to take a look at how a Republican congress in the U.S. will shape President Obama's final two years in office.

(COMMERCIAL BREAK)

ANDERSON: This is CNN and Connect the World with me, Becky Anderson at 13 minutes past 8:00 in the UAE.

Now the U.S. President Barack Obama is facing two years in office with what is a divided Washington. Tuesday's midterm elections gave

Republicans complete control of government, of congress.

Some analysts say the president's unpopularity may be partly to blame for the Democrat's slump. He is expected to address those losses at a news

conference in about three hour's time. We stick with CNN for that.

But Mr. Obama is hardly the first president to face this situation in his second term. And towards the end of that second term.

Dwight Eisenhower, Ronnie Reagan, Bill Clinton and George W. Bush all had to deal with a divided government.

Some presidents, like Reagan and Clinton, chose to reach across the aisle to pass legislation, while other presidents looked to foreign policy

to strengthen their legacies.

Well, chief U.S. correspondent John King joins me now from Washington with a closer look, John, at what the president will be dealing with in

this upcoming congress.

How does it look right now?

JOHN KING, CNN CORRESPONDENT: It looks incredibly tough for the president, incredibly good for the Republicans, Becky, as you noted.

We'll hear from Mr. Obama in a few hours. It'll be very interesting to see if he's conciliatory or combative or maybe a mix of the two as he

discusses his many differences with the Republicans and his own policy priorities.

In some ways, this is better as a silent movie. Just look at this map, Red is for the Republican Party in the United States. Blue is for the

Democrats. This is the House of Representatives. It speaks for itself, especially when you go back in time.

Remember after that big Obama election in 2008. He was the candidate of Hope and Change. He was going to make Washington work. He was going to

bring America together. He said there was no red or no blue America. This is what it looked like in 2009. Democrats had 257 members of the House of

Representatives and a majority. Again, this is what it looks like today, overwhelming sweep by the Republicans. They will now have in the ballpark,

Becky, of 250 members, a growing Republican majority in the House. They will have at least 52, perhaps as many as 54 members of the United States

Senate. They also picked up some key governorships across the United States.

So whether the issue is immigration, whether the issue is the president's health care law, whether the issue is disputes over taxes and

spending with Republicans, the president has a much steeper Hill.

Now the Republicans have a governing responsibility now. We'll see if they're willing to compromise too. But this is a president just two years

after a big reelection win who is back on his heels. His own party blaming him for the loss. He's going to be very lonely.

ANDERSON: Yeah. Listen, Bill Clinton got involved with (inaudible) sealed a deal with China in his final year in office. Reagan securing a

number of significant international achievements as well as domestic ones in '87 and '88 I seem to remember. Is Obama likely to focus his attention

on things like trade and defense and security to bolster his presidential legacy, do you think?

KING: In a word, yes. A trade is an area where he does have some common grounds with the Republicans. They don't think many of the

Republicans are skeptical the president actually wants, because of opposition from labor unions in his own democratic party he wants these

sweeping trade deals. But look for that as one area of bipartisan cooperation: the trade sector.

Look, the president is about to head off to Asia for a big trip. He has long talked about the Asia pivot, get the United States out of the

Middle East, focusing so much on the Middle East, try to focus more on the China challenge, on relationships with Japan and Korea, Australia,

elsewhere on the Pacific side.

And the president is going to try to do that. But, Becky, you know these issues better than I do, this is no -- you know, easy task. There's

big concerns about China when it comes to cyber war, a big concern about the China Sea and naval vessels in the region, a lot of tensions even with

allies over things there.

If you want to look at one other place in the world, look at Iran. The president would very much love to strike an agreement with Iran over

its nuclear program. But as he tries to do that, Becky, some of the administration say he's going to try to cut a deal that he does not have to

submit to congress for approval. Trust me, with more Republicans in the United States Congress, they will be watching this president very closely,

because they are very skeptical he'll give away too much in that deal.

ANDERSON: And that's fascinating, because the deadline, of course, for that deal November 24. So just after this period of time, as you say,

those congressmen and women will be watching that closely.

Let's get right into this region, if you will, into the Middle East. If Mr. Obama, John, wants a victory against ISIS to be part of his legacy,

he's got his work cut out for him, of course. He's been criticized for being slow to arm so-called moderate rebels in the Syrian civil war, which

began three years ago.

Here's what the Pentagon press secretary said in a progress update. You'll have heard this, probably, John, on Tuesday.

(BEGIN VIDEO CLIP)

REAR ADMIRAL JOHN KIRBY, PENTAGON PRESS SECRETARY: There's progress in setting up the curriculum, there's progress in getting the sights ready,

there's progress in getting trainers contributed to the effort not just from the United States, but from other nations.

But the vetting process has not begun yet. There's still some additional work that needs to be done. And we're all mindful of the

importance in getting it -- the program getting it established and getting it running, but again that vetting process has not yet been completely

codified. There's still some work that needs to be done on that.

(END VIDEO CLIP)

ANDERSON: Sort of loose language there.

Do you think Obama is going to throw more resources at this? I know he's got some temporary legislation in place through I think it's the 11 of

December. Now that he's got quite frankly nothing to lose?

KING: Well, Becky, a translation of what we just heard from Admiral Kirby there is this is going to take a very long time. And guess what,

this challenge will be handed off to the next American president. We don't know who that will be. But in the short-term, remember, Barack Obama was

elected on one central promise to get the United States out of Iraq, to get the United States out of military intervention in the Middle East. How

will he end his presidency? Managing a U.S. military intervention in the Middle East. That is without a doubt.

And again with more Republicans in congress, some of those Republicans, not all, but some of those Republicans say, look, Mr.

President your airstrikes are not working. ISIS is not in retreat. You may need boots on the ground.

So, the president is going to face some pressure to get more hawkish. There's no, zero, evidence he will accept that. He wants no boots on the

ground. But he has to manage that crisis, military action in Iraq and in Syria. Look elsewhere around the region. He has a dysfunctional

relationship with the Israeli prime minister. So look anywhere in the world, does the president want achievements? Does he hope that's where he

can burnish his legacy? Yes. Do you say any easy ones, Becky? I don't.

ANDERSON: I agree with you, sir.

But it is very rare that I would disagree with you. Thank you.

Mr. King in the house for you tonight out of Washington.

Now that these midterm elections are over, Washington is already starting to eye the 2016 U.S. presidential election, of course. You can

take a look at some of the new Republican power players on Capitol Hill and who just might be the next person running for U.S. president.

You can find all of that on the website, CNN.com/elections.

Live from the UAE, this is the city of Abu Dhabi coming up on Connect the World with me Becky Anderson.

India's prime minister promises to step up growth. Find out how he plans to attract foreign investors to help do that. Remember, he is six

months in to his term at this point. So we're getting just a sense of where he is.

And how an enterprising Nigerian pair are using bad traffic in Lagos to their advantage. African start-up after the break.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hello, my name is Rafael Lafai, a co-founder of Supermart (ph) Nigeria.

UNIDENTIFIED MALE: Hi, I'm (inaudible) CEO of Supermart, Nigeria. Welcome to our world.

JOHN DEFTERIOS, EMERGING MARKETS EDITOR: In Nigeria's most populated city, Lagos, Afater and Fabor (ph) turned to the Internet to launch their

business in the spring of 2014.

UNIDENTIFIED MALE: Supermart is an online grocery delivery service. Customers can currently shop on the website from as many as 50,000 items.

But what we've done is to partner with local super markets and local retailers across Lagos so selling everything from, you know, fresh meats,

fruits and vegetables, dry groceries, wet groceries, medicine and office supplies.

UNIDENTIFIED MALE: We deliver most conveniently to the customer, because the customer gets to select a three hour delivery window within

which we deliver to them.

DEFTERIOS: Traffic in Lagos is a major problem, but they were inspired to use it as an opportunity to sell the advantages of their

service. They put products from different super markets on their website, but then collect orders from clients.

UNIDENTIFIED MALE: This is a problem with solving. It's really a case of (inaudible) gets the products in the hands of the people. We saw a

place to add value to them most. It'll be just like go, pick from the shop floor, and deliver to the people. So we set out to do that.

UNIDENTIFIED MALE: We thought about designing a service that were tailored specifically to groceries. And since we launched the service in

May, that's what we've done. You know, we've found more and more stores to partner with across Lagos now that more and more customers onto the site.

DEFTERIOS: With business steadily growing, the pair always come across a familiar challenge.

UNIDENTIFIED MALE: Well, I guess the most obvious challenge it's like asking (inaudible) the traffic in Nigeria. But I think that challenge is

where we have a unique value.

DEFTERIOS: By mapping out the city and studying the traffic patterns, they're able to provide a timely service by placing staff in the different

zones. But they still plan to recruit more supermarkets.

UNIDENTIFIED MALE: What we propose to them is that we can be an additional sales channel for them. So we approach them and we tell that we

can add their entire inventory onto our website and then that way we can help them increase their sales without necessarily physically expanding

their shop floor or to expanding to more locations.

UNIDENTIFIED MALE: Building enterprises is difficult. It's not an easy road, but I think anybody who feels that they have what it takes they

should jump into the ocean and just come an swim with us,

(END VIDEOATPE)

(COMMERCIAL BREAK)

ANDERSON: This is CONNECT THE WORLD with me, Becky Anderson. The top stories for you this hour here on CNN being broadcast out of the UAE.

Hamas praising a deadly attack in Jerusalem. A van driver crashed into a crowd of people, injuring 13 and killing a police officer. Israeli

police then shot and killed the attacker. And there were clashes earlier today between Palestinians and Israeli police at the holy site the Jews

call the Temple Mount, while Muslims refer to it as the Nobel Sanctuary.

A big night for Republicans in US midterm elections. They won the majority of seats in the Senate and will now control both houses of

Congress. They also won key governors' races. A White House spokesman said President Obama is, and I quote, "anxious to get back to work and put

the midterm votes behind him."

An update on a story that we are following out of Mexico for you. It involves the case of 43 students taken in a mass abduction. This is video

we received a short time ago. It shows police taking into custody the mayor of the town where the students were -- excuse me -- last seen, along

with his wife.

They are accused of being the probably masterminds behind the abductions. Police found them at a house the couple had rented in a Mexico

City neighborhood. Still no sign of those students. Rafael Romo is going to get us the latest in a report in the next hour.

And another story that we've been following for you: a 70-year-old American behind bars in the United Arab Emirates, here, for allegedly

taking a photograph in a forbidden area. John Defterios joining me now with the details. And the details were pretty sketchy over the past -- not

just 24 hours, but the week or so that he's -- since he was arrested.

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Yes.

ANDERSON: What do we know about the case of Robert Alan Black?

DEFTERIOS: Well, as a journalist trying to get into this pursuit of the information, it's not easy, as you know, because you reported on it

yesterday. It's like entering a maze. You don't know if you get the right information to find the exit. And that's where we find ourselves in right

now.

But in the last hour, we have found out that Robert Alan Black now has legal representation. He didn't have the funding for that. There's been a

fundraising campaign on Facebook, raised $12,000, and his spokesperson that's in the United States suggested they screened a number of different

solicitors here in the UAE, he'll have representation.

He signed this privacy waiver, so everywhere we knocked on the door to try to get information, whether it was the police or the prison itself, or

the US embassy, they all said, look, he hasn't signed the privacy waiver, which by the way, is in Arabic, so you don't know what you're signing. And

as a result, no one can talk to you.

Now, this is kind of unfortunate for those following the story, and I'm sure for those looking at the story from the outside world, it's like,

well, what are you talking about? A lot of the documents you can sign here are in Arabic, you don't know what you're signing. And therefore, he

didn't sign that privacy waiver, and we can't get more information at this time.

ANDERSON: He didn't or he did?

DEFTERIOS: He did not sign the privacy waiver --

ANDERSON: Right, OK, all right. Any indication of what it was that he was taking of a photo of? Do we have any more on that at this point?

DEFTERIOS: Well, it's -- not real clarity, but you understand that the layout here in Abu Dhabi, about three kilometers from our CNN operation

here, you have what is kind of a no-go zone. It's an area of embassies, police security apparatuses, and military security apparatuses.

Now, in this climate of what's going on in Iraq and Syria, and we've seen what's been reported in the jihadist websites as well, some security

alerts have come out. This, as I was suggesting here, has gone into a category of state security.

As you know, Becky, when it goes into that category, even when you call different sources here, they say, look, it's not in our hands, it's in

state security, we can't give you information. He didn't sign the waiver, so we can't information from the US embassy.

Now, a few things we do know going forward here. He apologizes for whatever pictures he's taken, but if you go into that zone, it's listed in

Arabic, it's listed in English. And one of the criticisms you have from human rights groups, when you come into this country, you don't know what

is the due process or the lack of due process.

It seems like Dr. Black, here, when he was visiting and appearing at a conference, he was going to go on to a conference in Malaysia, which he

didn't attend, took pictures. He's a big architectural nut, and he likes the major modern buildings that are here in the city.

Didn't know the area he was in, didn't know he shouldn't have taken -- should not have taken the photographs, and has now fallen into this

category of state police. They take it really seriously here. Information is scarce.

And many would argue from the outside world and those -- even those that live here as an ex-pat -- that there isn't due process. Once you fit

into this category, it's hard to get an attorney, it's hard to get information out, it's hard to even get phone communication.

He has a phone card now, and we do know in the last hour, Becky, that he spoke to his son, Scott, for the first time. So, drips and drabs are

coming out. We'll see what happens after he signs this waiver and whether the US embassy can fill in the gaps of the details we're lacking tonight.

ANDERSON: And the incident just about three kilometers from here, just behind the Bureau --

DEFTERIOS: Yes, that's what we understand.

ANDERSON: -- yes, as we understand it -- here in Abu Dhabi. All right, John. Thank you.

DEFTERIOS: Thanks.

ANDERSON: Germany preparing to commemorate the 25th anniversary of the fall of the Berlin Wall. Official events take place on Sunday.

Already, there are many people's memories playing out in the media, with stories on where they were and the impact that reunification had on their

lives. CNN's Jim Clancy covered it as it happened back in 1989.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN INTERNATIONAL CORRESPONDENT (voice-over): Hammers in hand, Germans battered down the wall that had divided this country for some

28 years.

(CROWD SHOUTING, SINGING)

CLANCY: What everyone witnessed seemed unthinkable. For most, if not all their lives, East Germans knew even approaching the wall could have

resulted in their deaths from armed border guards. And suddenly, they were on top.

CLANCY (on camera): Those were heady times. Of course, everyone knew they were witnessing history, but that didn't stop us from turning to one

another and asking, can we really be seeing this happening?

Even diplomats were jarred. I remember talking to then-US ambassador Vernon Walters as events unfolded, and he said at first, there were fears

that either Moscow or the East Germans themselves might try to roll it all back as some kind of a mistake. But as the situation evolved, he soberly

assessed that things had literally gone so far, no one could unravel them.

VERNON WALTERS, FORMER US AMBASSADOR TO WEST GERMANY: What has happened is irreversible, and that once again, the Germans of both parts of

Berlin can get together. We ought to remember how we got here. We got here because we were strong, we got here because we were determined, and we

got here because we defended the free choice of people to choose their own destiny.

CLANCY (voice-over): The night of November 9th, 1989, we reported how the German people made that decision.

(CROWDS CHEERING)

CLANCY: After almost three decades of separation, Germans of East and West embraced in a common victory. Some came because they wanted to test

whether it was true. Others, embittered by years of repression, came vowing they would never go back.

CLANCY (on camera): Round the clock preparations for the 25th anniversary of the fall of the wall have been underway for some time here

at the Brandenburg Gate, the mystic center, really, of the German people.

It came sometime later, but it was here that officials from East and West were hoping to get together for an official opening, and what they

discovered that was nobody wanted to listen to the speeches.

CLANCY (voice-over): Germans began to stream over in a light rain, many of them carrying umbrellas, balancing on top of the wall. They were

celebrating by popping champagne bottles, drinking beers, and lighting sparklers.

(TRUMPET PLAYING "AULD LANG SYNE")

CLANCY: There was a mood -- a partying mood, a mood that they knew that history was being made, that they were a part of that history. It was

an incredible time for the Germans and for the entire world. It was the time that the wall came down.

Jim Clancy, CNN, Berlin.

(END VIDEOTAPE)

ANDERSON: And to mark the 25th anniversary, we are back in Berlin. Fred joining me now, live from there. What's the mood in the city ahead of

what is the marking of this historic event?

FREDERIK PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: Well, the city certainly is gearing up for it, Becky, and one of the things that you can

tell is that more and more tourists coming into town. But also that the mood among Berliners is changing. It is, of course, a time for them to

reflect on all of this.

And it is now, also, 25 years, so one generation already has passed. So, there's a lot of people who live in the city who don't actually know

where the wall was or what the wall was about. And as you can see, I'm in front of a piece of the wall, which is called the East Side Gallery, which

is the longest remaining part of the wall that's still standing. It's an art gallery.

And I am with the car of the revolution, the Trabant, this little car here, that we've turned into the CNN Trabant, and Becky, if you like, I can

show you how it works. May I do that for you?

ANDERSON: Yes, you may, sir. Please do.

PLEITGEN: Thank you very much. Thank you very much. So, this is the car of the revolution made of PVC plastic, 26 horsepower engine. This is

the sports version of the Trabant. It runs on a mix of oil and gasoline, and it's made for people that are about 5-foot 6. Unfortunately, I'm 6-

foot 5, but I'll try to get in anyway.

(LAUGHTER)

PLEITGEN: So, what I have to do is, I have to sort of --

ANDERSON: Go on.

PLEITGEN: -- down like this. And then -- put my leg around the steering wheel. And then, it's actually quite a complicated process,

because what you have to do is, first of all, you put the key in the ignition.

And by the way, this car -- feels like socialism, it drives like socialism, and it also smells like socialism inside. A typical sort of

plastic smell. And then what I'm going to do is -- let me get this key in here. Ugh. Any second.

ANDERSON: German engineering. Let's see this work.

PLEITGEN: Yes, German engineering, I know. Can you put the light on this?

(LAUGHTER)

PLEITGEN: There we go. OK. All right. So, you open the gasoline valve --

ANDERSON: Yes -- go on.

PLEITGEN: Then, you sort of turn the key a little bit, and then you hit the gas, and --

(ENGINE TURNS OVER, STARTS)

PLEITGEN: There we go. No! It stalled!

(ENGINE TURNS OVER, REVS)

PLEITGEN: There we go. Second try. It usually takes the second try to actually get it on. But there you have, 26 horsepower howling away --

(ENGINE REVS)

PLEITGEN: -- and I will turn on the lights to actually go. And then we're ready to go.

ANDERSON: Yes?

PLEITGEN: We are going to be driving this car --

(CAR BACKFIRES, ENGINE REVS)

PLEITGEN: -- this CNN Trabant we had, and an artist customized this car, put some beautiful sort of wall details. This is sort of people's

faces coming over the Berlin Wall in 1989, a great artist, we're driving around this town, all of our coverage for the 25th anniversary, so until

Sunday. People have been taking pictures of it. It's absolutely great on the air.

So you -- this is me, driving the car of Communism and the car of the revolution. This usually had a delivery time of 14 years after being

ordered. So, everybody wanted this car, and now, everybody wants to get rid of it.

(ENGINE REVS)

PLEITGEN: Very good.

(LAUGHTER)

ANDERSON: Fred, driving you, the viewer, through the week in the lead-up --

PLEITGEN: There you go.

ANDERSON: -- to what is our special coverage of the anniversary. Thank you, Fred. Off you go, my love. That's brilliant.

PLEITGEN: Thank you, Becky.

(CROSSTALK)

ANDERSON: Join Fred, Jim Clancy, and Hala Gorani --

PLEITGEN: Yes, maybe I'll come to Abu Dhabi with this thing one day.

ANDERSON: -- for special reports live from Berlin. Oh, please do! Oh, they'd love it out here!

(LAUGHTER)

ANDERSON: We've got live coverage all week long, kicking off 5:00 PM Central European Time Friday, that's 8:00 PM here in Abu Dhabi. I'm not

sure that car would put up with the heat out here. It is still 97 degrees, I looked today. Some nearly 40 degrees out here. Maybe. Well, who knows?

Good stuff, thank you Fred.

Coming up, an assessment of India's economic future and how the new prime minister will prove pivotal to its success. That story's up next.

Stay with us.

(COMMERCIAL BREAK)

ANDERSON: This is CNN, CONNECT THE WORLD with me, Becky Anderson. Welcome back. Now, I want to get you back to our top story this hour.

Palestinian militant group Hamas praising a deadly attack in Jerusalem. A police officer was killed and 13 people were injured when a van crashed

into a crowd.

Now, the driver then get out of the vehicle, we understand, and began striking people with a metal bar. He was shot dead by police and later

identified as a member of Hamas.

And earlier, there were violent clashes between Palestinians and Israeli police at the holy site the Jews call the Temple Mount and Muslims

refer to as the Noble Sanctuary. The unrest has led Jordan to recall its ambassador to Israel and make a complaint to the UN Security Council.

(BEGIN VIDEO CLIP)

(GUNFIRE)

(CROWDS SHOUTING)

(END VIDEO CLIP)

ANDERSON: Let's do more on this. Amman calling the Israeli escalation in Jerusalem "unprecedented," and that's quite something, given

the history of what is going on there. This is a neighboring country, of course.

Joining us on the line is the Jordanian government spokesman, Mohammed al Momani. And sir, what is your message, or the government's message to

the Israelis in recalling your ambassador?

MOHAMMED AL MOMANI, JORDANIAN GOVERNMENT SPOKESPERSON (via telephone): Well, the first message is that this Israeli behavior must stop

immediately. It's contrary to international law, to international humanitarian law, the Geneva Convention. Israel is the occupying power, so

Israel must not do anything that will upset the status quo in East Jerusalem and al Haram al-Sharif, the Muslim holy site.

What you have seen this morning is absolutely unacceptable, and should stop and never happen again. More than 200 security officers raiding into

the Haram al-Sharif, and 154 (inaudible) and others are also raiding into the Haram al-Sharif, which it's part clashes with Muslims there --

ANDERSON: All right.

AL MOMANI: And that caused the damage of floors --

ANDERSON: I understand --

AL MOMANI: -- and the burning of carpets.

ANDERSON: I understand, and with respect, sir, let me just move you on. It's absolutely clear why you've recalled your ambassador. I wonder

whether the fact that Hamas, who praised what was a deadly attack in the afternoon, with one Israeli policeman killed and 13 Israelis injured.

Does that -- does the fact that Hamas has praised this attack help or hinder the uptick in violence? Some will say it will play into the

Israelis' hands that this is a terror group and legitimizes the Israelis calling this a terror attack, a phrase which we all know is a very loaded

phrase in this conflict-ridden region.

Just how significant is what you have seen on the streets of Jerusalem, not just in the morning, sir, but in the afternoon, just how

significant is that at the end of play today?

AL MOMANI: It is very significant and very important. And we think this is the result of the lack of a genuine peace process, credible peace

process that will bring peace and tranquility and create a Palestinian state.

The more you see violence, the more we will be distanced from a solution, a just solution that will bring peace and justice to societies

and communities --

ANDERSON: Sir --

AL MOMANI: -- in the region. We will continue to --

(CROSSTALK)

ANDERSON: Sir, when do you expect those peace talks --

AL MOMANI: -- see peace talks --

ANDERSON: I'm so sorry, I'm going to just push you on here.

AL MOMANI: -- until we get into a point whereby everybody will get into abiding international law and international resolutions and stop doing

anything that will hinder the implementation of the international resolutions.

ANDERSON: Let me ask you one question, then. We were promised that peace talks would begin just towards the end of September. It's now a

month after that. When do you expect talks to begin, if at all, now, between the Israelis and the Palestinians?

AL MOMANI: We hope this will happen sooner than later. We have said that the lack of peace process, credible peace process, will feed into the

hands of extremism and extremists. And then we will start complaining about that.

The solution for this is to have a brave, credible process, politicians who can stand and be committed to finalizing this conflict and

end this continuous violence in the streets of Jerusalem and the holy sites in East Jerusalem.

ANDERSON: There will be people on both sides of the divide who just see peace as a pipe dream this evening. Sir, but we thank you very much,

indeed, for joining us on what has been a very disappointing and deadly day in Jerusalem today.

Just ahead, as promised, I'm going to get you to India to hear how the country's finances are stacking up under the country's new prime minister.

A report card on Mr. Modi, coming up.

(COMMERCIAL BREAK)

ANDERSON: You are watching CNN, this is CONNECT THE WORLD with me, Becky Anderson. Welcome back. Now, the spotlight is on India this week.

It's the second day of the World Economic Forum in India, and that is hosted by the prime minister there, Narendra Modi.

When he swept into six months ago, Mr. Modi promised to get India's fast-track growth model back on the rails, and he ambitiously targeted 7 to

8 percent growth within the next three years. His administration said it would cut the red tape and roll out the red carpet, but it may take more

than words to achieve those figures.

The key is going to be wooing foreign investors. Our Asia-Pacific editor Andrew Stevens joining me now from New Delhi. And with the World

Bank ranking India 142 out of 189 for ease of doing business, how are they likely to woo these foreign investors?

ANDREW STEVENS, CNN ASIA-PACIFIC CORRESPONDENT: Well, they've certainly got their work cut out for them, Becky. But they have begun on

the right note, certainly, in the story that they're telling the international investment community about how things are going to be

different, that sweeping reforms are happening and will continue to happen for some time, which will result in this much bigger economic growth.

But the finance minister I spoke to a little earlier today, Arun Jaitley, quite candidly said that they're going to have to unpick some of

the earlier legislation from the previous government, making no bones about the fact that they've got a lot of work to do.

I sat down and spoke with him, Becky, and given the fact that India is announcing and will announce such a sweeping number of reforms, I began by

asking him which are the keys, the priority reforms that he sees, which is going to enable India first and foremost to get back to those sort of

growth levels. This is what he had to say.

(BEGIN VIDEOTAPE)

ARUN JAITLEY, INDIAN FINANCE MINISTER: I would say one, that we need to open the door wide open so that people can come in. We need to ensure

that there is stability of policy, there is stability of taxation policy, and therefore, we have to disagree with a lot of things that happened in

the past.

We have to have a world-class infrastructure. We have to provide avenues where people can do business and make profit, because nobody's

coming here only for philanthropy. People are coming to do business in India. And then, generate employment in India.

STEVENS: How big a job is it to convince the international community that India is, indeed, open for business and is a safe and stable place to

invest?

JAITLEY: Well, it's quite an effort. The election results itself sent a message. The initial policies of this government has sent an

important message. The decisiveness of our prime minister has sent an important message. Therefore, there's a lot of buzz about India.

But the international investors are A, watching policy, and B, watching whether the appetite for long-term reforms exists or not. Before

they jump in, they want to be convinced about India, and I can assure you, we are not going to disappoint them.

STEVENS: There has been an enormous amount of optimism in this country across the board for the new government, reflected, obviously, in

the results of the election and the reforms made so far. But is there a risk, a danger, of expectations running too far ahead of reality?

JAITLEY: See, I don't want to get into generic phrases like "Big Bang ideas" coming in. If you see the cumulative effect of what we are doing,

the cumulative effect is a Big Bang reform. And I'm sure people with their sense of wisdom will be able to appreciate that.

STEVENS: So, it doesn't bother you that --

JAITLEY: It doesn't bother me because we are very clear, we've done a lot, and there's a lot of road map which is still waiting ahead of us.

STEVENS: Let's talk about financing. You yourself said recently that India has to live within its means. There is a relatively narrow tax base

here. There are a lot of fixed costs, big fixed costs -- defense spending, the anti-poverty programs, subsidies. Against that, there's talk of

billions being spent on infrastructure, plus the reforms. Does -- or do the numbers add up, or is your --

JAITLEY: Today, they are not adding up.

(CROSSTALK)

STEVENS: They're not because there is a budget deficit, correct?

JAITLEY: For you -- so, you'll rely on deficit financing. It also relies on higher growth rates, which then lead to buoyancy in taxes.

STEVENS: So, that's a key? So, this is a future growth story? Without the future growth, you can't --

JAITLEY: Absolutely.

STEVENS: -- carry it out?

JAITLEY: Absolutely.

STEVENS: Right. And what do you base your future growth assumptions on?

JAITLEY: You see the huge number of steps that we are taking and the inbuilt capacity of the Indian economy is certainly to grow anywhere

between 7, 8, and 9 percent. And I think that's our optimum, and we should be able to realize that.

(END VIDEOTAPE)

STEVENS: So, what really the Indian government is looking for here, Becky, is it's all a virtuous circle. They will do the reforms, that will

attract the investment. The investment will lead to further reforms, opening up the economy. They will get the economic growth, which they can

then start spending on lifting this entire country up through the ranks in the global sense.

Remember, there are 400 million people under the poverty line here. That's more than the entire population of the United States. And poverty

is also something that this government is obviously going to have to tackle to make sure that there is a dividend for everyone in this new economic

growth story that they're talking about, Becky.

ANDERSON: Well, you'll remember that we were there six months ago. This is a report card half a year in, with Andrew Stevens, who's in India

this week for you. We'll see you, Andrew, once again tomorrow.

From India back to the UAE, I'm Becky Anderson, that was CONNECT THE WORLD, thank you for watching. See you tomorrow.

END