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Captain, Engineer Arrested in China Ship Disaster; Weather Contributed to Ship Capsize; Who Gave Order for Iraqi Retreat in Ramadi Fight; Critical Meeting of Foreign Ministers on ISIS; Number- Two Man in FIFA Implicated in Scandal; MERS Outbreak in South Korea; Two-Drug Combination Could Mark New Era in Cancer Treatment; Living in Gaza Following War; Senators Could Vote on Compromise Bill to Renew Expired Patriot Act; Bruce Jenner Transforms to Caitlyn Jenner; Controversy over Re-Photographing Instagram Posts. Aired 2-3a ET

Aired June 01, 2015 - 02:00   ET

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

[02:00:10] ERROL BARNETT, CNN ANCHOR: Hundreds of people may still be trapped alive inside a ferry that sank in China. A live report coming up.

ROSEMARY CHURCH, CNN ANCHOR: Health officials in South Korea are rushing to try to try to stop the spread of the MERS virus after two deaths.

BARNETT: Plus, say good-bye to Bruce and hello to Caitlyn Jenner. The transgender woman and former Olympian is now setting a new title world record.

CHURCH: Hello, I'm Rosemary Church. Welcome to viewers in the United States and all around the world.

BARNETT: I'm Errol Barnett. We are your anchor team for the next two hours. Thank you for tuning in. This is CNN NEWSROOM.

CHURCH: And we are following breaking news in eastern China. The country's premiere is now at the scene where a passenger ship capsized in the Yangtze River with 458 people on board. The ship's captain and chief engineer have been taken into police custody.

BARNETT: That happening just within the past hour. State media now reporting the ship went down during a storm as it traveled between Nanjing to Chongqing. 13 people rescued. Five bodies recovered.

Let's get to Ana Coren, she's watching the latest developments from our bureau in Hong Kong.

Ana, a few have been saved from the waters. Give us an update on the ongoing rescue efforts and who has been arrested.

ANA COREN, CNN CORRESPONDENT: Well, Errol, the latest person to be rescued is an 85-year-old grandmother, pulled out of the water in the last hour. Apparently, she reportedly was saying to rescuers, thank you, thank you. So, you can imagine the frantic desperate search under way currently in the Yangtze River, taking place. Water is a depth of 15 meters. 13 people have been plucked alive from the water. But many, many more are still missing. Five bodies have been found. But we know there are thousand of people on the scene, divers, rescuers, hundred of ships that are trying to help look for any survivors as well. We know that the currents are strong in the river. They have had to slow down the Three Gorges Dam to slow the current to aid the rescuers. We know that the ship went down about 9:30 p.m., last night. That is according to state media. And according to the captain, chief engineer, who, as you say, have been taken into custody, they say that a cyclone hit the ship and that it went down within a minute. We are also hearing from authorities, Errol, that most of the people on board are senior citizens. They were part of this charter cruise taking place, as you say, between Nanjing to Chongqing, two of China's largest cities. They were halfway through a 13-day voyage when the ship went down -- Errol?

BARNETT: Heartbreaking to think you had essentially a ship full of elderly people who at this hour still need to be rescued. We are watching some of the recent video coming into us. You talked about some of the manpower. They're trying to drill. Saw, burn their way into the vessel to get to survivors. But talk to us about the weather and the challenges it's posing to those rescue efforts right now.

COREN: For sure. As you are looking at pictures now, looks quite calm. It is overcast. Has been raining. And certainly last night. According to the meteorological agencies, they said there were storms that, that it was extremely windy, torrential rain. So, that was something that, that rescuers last night were having to deal with. We are also hearing from state media it was survivors, initial survivors from that, that ship that swam to shore. And they were the ones that alerted authorities. So it took some time before rescue efforts were -- were mobilized. But, as we say, there are hundred, hundred, still missing. And, most of them, being senior citizens. Looking at dramatic pictures. You can see the rescuers where the hull of the ship is exposed from the water. We understand from, rescuers that they have found signs of life. They have heard voices. They heard knocking on -- on the hull of the ship. So, as you can imagine they're desperately trying to rescue those people, hoping that some people are still alive.

BARNETT: Yeah, these are the key hours when they certainly could rescue and save people's lives.

Ana Coren on the breaking story out of Hong Kong, following the ship that sank on the Yangtze River.

Thank you, Ana.

[02:05:04] CHURCH: And Ana was mentioning the weather conditions how bad it was. Our Ivan Cabrera joins us, meteorologist.

Ivan, we heard the ship went down, the ferry went down at 9:30 at night. There were storms, the weather was bad. It's looking overcast now. Talk to us about the conditions when this happened. And of course, now perhaps more importantly, now as these rescuers try to find survivors, what are some of their challenges when it comes to the weather? IVAN CABRERA, AMS METEOROLOGIST: Obviously, a tragedy there. I have

to say weather conditions yesterday were poor. This is not a surprise this time of year across China. We can really get downpours during this time of year. Our East Asia rainy season here. So you can imagine, if you were a captain of a ship, and you are used to doing this route, along the river, you know you are going to possibly run into some of these storms. And yes, the one that they ran into was particularly strong here with torrential downpours and wind estimated anywhere from 60 to 90 kilometers per hour. That's going to do a couple things obviously visibility will be an issue. More importantly the wind can churn up the waves and really get you into trouble, especially a smaller boat. That's what we had going here. You can see, that this not just included the province here. Look at the rainfall across the region here. That particular spot, upward of 60 millimeters in six hours. The kind of rainfall rates we can get this time of year with this semi-permanent front. Now the front does meander through the season here. Shift to the north and the south. Thankfully what is happening, getting a push of colder air. What that allows for the stationary front to begin to move a little further to the south. I think what you saw in the picture. Overcast. Light rain. What we don't want is heavy thunderstorms that can churn up the seas and cause conditions to be very poor for the search-and-rescue to continue. So we'll follow that for you.

As the far as the wind, 20, 40 kilometer-per-hour wind. Not out of the question. See the stronger wind staying to the north. Certainly, some good news there for the, for the search-and-rescue over the next couple days -- Guys?

CHURCH: Ivan Cabrera keeping an eye on the condition there is for rescuers. Many thanks to you.

BARNETT: Thanks, Ivan.

CHURCH: Want to turn now to Iraq where security officials say an ISIS suicide bomber drove a tank rigged with explosives into a base near Samarra. The exPLOsion killed at least 34 Iraqi police officers and wounded dozens more.

BARNETT: Meantime, Iraq's government is investigating who exactly gave the order for troops to retreat from Ramadi last month. Critics have said troops lacked the will to protect the key city. But the speaker of Iraq's parliament tells CNN they were following a direct order, it's just unclear where that order came from.

CHURCH: Foreign ministers of the international coalition fighting ISIS are gathering in Paris for a summit today.

Barbara Starr reports on the growing concerns about ISIS gains.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Air strikes by Iraqi forces against suspected ISIS militants designed to show Iraqi forces in the fight.

(GUNFIRE)

STARR: But disturbing signs even in government-controlled Baghdad, the reality is different.

(SIRENS)

STARR: ISIS claimed responsibility for two hotel bombings in the capital, unsettling residents in a city ringed by 100 Iraqi battalions, as many as 50,000 troops according to U.S. estimates.

COL. CEDRIC LEIGHTON, RETIRED, U.S. AIR FORCE: The fact is that ISIS has a lot of momentum right now. We're dealing with a central government that has in essence practically lost control over large sections of the country and large sections of its armed forces. It's a very dangerous situation to be in.

STARR: From Fallujah and Ramadi in the West and Baiji and Mosul in the north, U.S. military officials privately acknowledge in these Sunni areas, ISIS has gained ground and is not on the defensive, as the Pentagon has publicly said.

ISIS's stockpile of captured weapons provided by the U.S. to the Iraqis is growing, Prime Minister Haider al Abadi said.

HAIDER AL BADI, IRAQI PRIME MINISTER: (through translation): We lost around 2,300 Humvees in Mosul alone. And we're going to lose more tanks and Humvees.

STARR: All of this raising urgency at the White House, the Pentagon and the CIA about what happens if they cannot win against ISIS.

ASH CARTER, DEFENSE SECRETARY: On the military side, I actually have asked my staff before I left to look at what we can do to increase our enabling of Iraqi forces.

(END VIDEOTAPE)

[02:10:00] CHURCH: Barbara Starr reporting from the Pentagon.

Ian Lee is tracking the developments and joins us now from Cairo with the latest.

Ian, these are disturbing details, of course. ISIS gaining ground, stockpiling weapons and seizing these 2,300 Humvees. With a conference on ISIS scheduled to get under way in Paris in the next few hours, what can we expect from that critical meeting of foreign ministers.

IAN LEE, CNN CORRESPONDENT: Rosemary, there's 24 nations attending this conference. Talking, about an array of things. First you have how to stop ISIS militarily. How can Iraq defeat -- defeat them? Also, what the international community can do to help them, to help retake Ramadi, retake Anbar Province, and eventually retake Mosul. A tall order as we have seen ISIS has been very difficult to -- to defeat so far as they continue to advance. But the other, probably more crucial aspect of the conference is trying to create political dialogue. How to create a road map to include the Sunnis in the government to bridge the divide created, this mistrust, get them working together. Already we have Sunni tribal fighters, work, fighting with the government. How to embolden them. How to get them more capable to take on ISIS. But also, once this is over, if they're able to defeat ISIS, how to have a reconciliation between the Sunnis and Shiites. If we remember, this really all began because of the deep mistrust between the Sunnis and Shiites. It is going to be very difficult to bridge the divide. This is something they're hoping to tackle at the conference.

CHURCH: Of course, this is coming as a lot of people, critics calling for a change in strategy. We'll see what happens with that.

But what more are we learning about what is happening on the battlefield right now as the Iraqi forces, these Shiite militias and Sunni tribal fighters try to work together to defeat ISIS militants?

LEE: Well, we heard just recently about that -- that deadly suicide bombing with the tank. That went to the base near Samarra. Pushed aside two Humvees blocking the entrance. They couldn't do anything to stop this tank from reaching its destination. We have seen a lot of similar attacks like that. They have been devastating to the Iraqi military forces. The United States has sent 1,000 anti-armor missiles, weapons, to the Iraqis to help them combat that. That really is desperately needed because it would stop those kinds of attacks. But, we're hearing also that, that the U.S. is talking about helping train the Sunni fighters as well to get them just up to speed, really, to get them proficient enough to take on ISIS, to defeat ISIS. That is going to be crucial as well going forward.

Also, the other crucial elements will be, for this -- for the talks in Paris to confront this Shiite -- the Shiite militias to make sure they are and remain under Baghdad's control. And when they do enter Anbar Province, when they push forward, that they act accordingly and not have these allegations of human rights abuses we have seen in the past.

CHURCH: Exactly right. Of course, we will be watching the arrivals of, of the leaders, the foreign ministers there, those 24 nations. Next hour, in fact, there in Paris. We will cover that summit.

Ian Lee bringing us up to date on the situation from Cairo. Many thanks to you.

Errol?

BARNETT: Rosemary, a majority of Americans say they are dissatisfied with the military campaign against ISIS. You see the results of a CNN/ORC poll on your screen. Finding that 63 percent of Americans disapprove of how President Obama is handling ISIS.

CHURCH: Just 38 percent believe U.S. military action against ISIS is going well.

Former liberal Democrat leader, Charles Kennedy, has died at his home in Scotland. His death is not believed to be suspicious, but it is not yet clear how exactly he died. Kennedy lost his seat in parliament in last month's general election where he had been a member for more than 30 years.

BARNETT: That's right. And the current liberals Democrat leader, Nick Clegg, released this statement. It reads in part, quote, "Charles' untimely death robs Britain of one of the most gifted politicians of his generation." Charles Kennedy was 55 years old.

Now the acting head of the Transportation Security Administration is being reassigned after what is truly a damning internal investigation over airport security in the states.

CHURCH: It is, indeed. The Department of Homeland Security chief thanked Melvin Caraway on Monday for his 11 years with the TSA and then said he was moving to another office. The investigation found that undercover teams were able to get weapons, explosives, and other banned items through security 95 percent of the time. The report is still being written, but one U.S. congressman says the test results are deeply alarming.

[02:15:14] BARNETT: Now there are new reports that the number-two man in FIFA has been implicated in the corruption scandal rocking the futbol world.

CHURCH: U.S. prosecutors believe the FIFA secretary-general, Jerome Valcke, allegedly transferred $10 million to another FIFA official back in 2008.

CNN World Sports' Patrick Snell has details.

(BEGIN VIDEOTAPE)

PATRICK SNELL, CNN WORLD SPORT CORRESPONDENT: The U.S.-led investigation into the corruption continuing in a big way. Now "The New York Times" reporting that according to several unnamed law enforcement officials FIFA secretary-general, Jerome Valcke, allegedly transferred $10 million from the Swiss-based association into accounts belonging to a FIFA official in '08. That other official, former FIFA Vice President Jack Warner, among those arrested last week and is now facing extradition request from the U.S. government. According to "The Times," the government does not say that he knew the money was used for illegal purposes and not named as co-conspirator, not charged or accused of any wrongdoing.

In other developments, South Africa's futbol association president, Danny Jordan, denied his country made a $10 million payment in exchange for votes ahead of the 2010 World Cup. South Africa was chosen to stage the tournament ahead of Morocco 11 years ago. Mr. Jordan says the money was paid, but paid to the governing body for futbol in North and Central America and Caribbean for development of the sport in that part of the world.

In another CONCAF development, FIFA has now provisionally suspended Enrique Sans from futbol activities, at national and international level. Last week, CONCAF president, Jeffrey Webb, was arrested in Zurich, one of nine FIFA officials among 14 indicted on racketeering, conspiracy and corruption by the FBI.

Patrick Snell, CNN, Atlanta.

(END VIDEOTAPE)

CHURCH: We're going to take a very short break. Still to come, researchers say they have found a potent new weapon in the war on cancer. Coming up, one woman who says her melanoma is gone thanks to this treatment.

BARNETT: Also coming up, two people in South Korea are dead after suffering from MERS. CNN's Kathy Novak is following that story.

KATHY NOVAK, CNN CORRESPONDENT: That's right, Errol. 25 cases confirmed. Up to 700 people quarantined. I will have all the details after the break.

(COMMERCIAL BREAK)

[02:21:44] CHURCH: Welcome back, everyone. After two deaths from Middle East respiratory syndrome, MERS, in South Korea, the country's president calling for an all-out response.

BARNETT: Victims among 25 confirmed cases. Hundred quarantined now. In an effort to stop the spread of the disease, people exposed to the virus could be banned from leaving the country.

CHURCH: Let's turn now to Kathy Novak for the latest on this. She joins me live from Seoul.

Kathy, what is the latest information on this outbreak? What are authorities planning to do to try to contain this deadly disease?

NOVAK: Containing it, Rosemary, is the key at this point. Authorities are stepping up their efforts. They have given the deputy director of the CDC extra powers to act. These 25 confirmed cases, for most, linked back to a man traveling to the Middle East, came back to South Korea, then was diagnosed with MERS. Now of those sick people, the priorities are people aged over 50 and those who have pre- existing conditions. That was the case with both of the people who passed away. A 58-year-old woman had asthma. A man in his 70s had pre-existing lung condition. When they contracted this disease, there were fears for them because it is a respiratory disease and they passed away. A close eye is being kept on people in the high risk category. Almost 700 other people are quarantined. There's a close watch on particular cases and suggestion that more may still be confirmed -- Rosemary?

CHURCH: Kathy, just how well equipped is South Korea to cope with an outbreak on this scale?

NOVAK: The focus now is on early diagnosis and of treatment of people who have been identified as having MERS. The hospitals are being given extra help with medication. But the fact is there is no vaccine and no cure. I say the focus is on preventing the spread and on getting those people quarantined. Official say they hope this will be contained to people who have visited medical facilities. Still warnings to the public. The public told to stay away from large crowds, wear face masks, make sure they wash their hand often. And we are also aware of at least one elementary school that decided to suspend classes for some days.

CHURCH: As you point out, the key to this is containing it. Of course, early diagnosis. We're watching this very closely.

Kathy Novak, reporting there from Seoul, South Korea. Many thanks to you.

BARNETT: A two-drug combination could mark the beginning of a new era in cancer treatment. An international study found the drugs can empower a patient's own immune system to recognize cancer cells and destroy them.

CHURCH: Very positive.

Fred Pleitgen has the promising details.

(BEGIN VIDEOTAPE)

FRED PLEITGEN, CNN CORRESPONDENT (voice-over): It's one of the deadliest forms of cancer. Advanced melanoma is responsible for thousands of deaths around the world each year.

Pam Smith was diagnosed with skin cancer for the third time. It seemed she'd run out of options. Then she was offered a chance to take part in a new therapy.

[02:25:06] PAM SMITH, CANCER PATIENT: The drugs have shrunk the tumor from nine millimeters down to four millimeters. Afterwards, they found light lesions on my lungs. Even they have shrunk now to tinier than a pinprick. Every time I go to the hospital now, they give me good news.

PLEITGEN: It's called immunotherapy and essentially teaches our immune system to attack cancer. In this case, the combination of two drugs was used in an international study which paid for by the drug maker Bristol-Myers Squibb.

Anne McCarthy, of Cancer Research U.K., explains how it works.

DR. ANNE MCCARTHY, CANCER RESEARCH, U.K.: One of them stops the cancer cells from hiding from the immune system. It almost unmasks them and unveils them. The other one works by giving our immune system a boost which means we have more immune cells to target these newly uncovered cancer cells.

PLEITGEN: In almost 60 percent of cases, the disease was held in check or tumors shrank.

MCCARTHY: It's offering new hope to patients with advanced melanoma, something that is massively needed. In general, it is exciting and this new result is very, very encouraging. PLEITGEN: Even better news, the treatment could work against other

forms of cancer as well. But scientists caution a lot more research needs to be done.

(on camera): Many of those who took part in the study had major side effects and the drugs didn't produce the same positive results in all participants. But those involved in the study believe there is a chance that immunotherapy could revolutionize cancer treatment.

Fred Pleitgen, CNN, London.

(END VIDEOTAPE)

CHURCH: Certainly looking like a great breakthrough. We'll keep an eye on that one.

Let's take a very short break. We will have more news for you when we come back. Stay with us.

(COMMERCIAL BREAK)

[02:30:24] ERROL BARNETT, CNN ANCHOR: Welcome back to our viewers in the U.S. and around the world. We're chugging along. I'm Errol Barnett.

ROSEMARY CHURCH, CNN ANCHOR: I'm Rosemary Church.

Time to check the main stories we are following this hour.

In eastern China, rescue teams are scrambling to pull more survivors from a passenger ship carrying 458 people that sank in the Yangtze River. So far 13 people have been rescued, five bodies recovered. The ship's captain and chief engineer have been take known police custody.

BARNETT: An American tourist was killed in the lion attack on safari in South Africa. The park says the woman and her companion were driving with windows down when the lion attacked. Visitors are told to keep their windows closed. The woman's companion was hurt trying to help her. He is expected to survive.

CHURCH: U.S. Secretary of State John Kerry back in Boston for surgery to set his broken leg. He was suppose to attend the Paris meeting in the national coalition against ISIS, but instead, will phone into the meeting before surgery.

BARNETT: Now for the past nine months, many people in Gaza have lived in the ruins left by the war between Hamas and Israel.

CHURCH: Some families survived, some did not, and some fled. Concrete debris stand where homes once did. But the city is rebuilding.

BARNETT: Senior international correspondent, Nic Robertson, has the story of one man thankful his family lived, but fearful to rebuild.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Where once mighty houses stood, now crumpled concrete, pancaked floors, rebar twisted, clawing in the air, sprouting like angry graffiti. It reveals the scale of destruction in the wake of the war here last summer.

(on camera): According to the United Nations, Israel's operation responding to rockets fired from here inside Gaza destroyed the homes of more than 9,000 Palestinian refugees and severely damaged the homes of more than 5,000 others. Until now, little has been done to repair them.

(voice-over): Behind me, the house Nidal al Aira once owned, untouched since the war ended. He still visits. A car wheel, his make shift cooker. He serves tea from a smoke-blackened pot. He wasn't in when the rockets hit.

NIDAL AL AIRA, GAZA RESIDENT (through translation): I tried and tried to get back. Then, when I saw my house, I cried for a night. Then I realized no one was dead. It's only brick.

ROBERTSON: Nidal fears if he rebuilds now he will waste his money. The house overlooks the fence with Israel, a neighborhood riddled with Hamas tunnels.

Today, an Israeli surveillance balloon keeps a wary watch, fearing more may be dug.

AL AIRA (through translation): Hamas is here. We want to say, let us live. You want to build tunnels, build them outside not under my home so I can live and my home can remain standing. And not so after and not so the Jews can bring down my house.

ROBERTSON: His open criticism of Hamas is rare here. He has little to lose. He feels let down by his leaders.

AL AIRA (through translation): The solution is to sit with Arabs and Jews and sign a peace treaty and ceasefire so people here can live in peace and prosperity. We have seen so much pain here, I want everyone to live and enjoy life.

ROBERTSON: In some parts of town, a little U.N. money is being spent, demolishing, making way for the new, rebar recycled, concrete crushed for reuse too.

From high above Gaza, easy to see, far, far more houses standing than were destroyed. But next time, if there is a next time?

Nic Robertson, CNN, Gaza.

(END VIDEOTAPE)

BARNETT: Now some of the other stories we are following.

U.S. Senators could vote any day on a compromise bill to renew expired Patriot Act.

CHURCH: Gridlock and politics blocked the renewal of the domestic spying program. Now the U.S. president is pushing for quick action.

Our White House correspondent, Michelle Kosinski, has more from Washington.

(BEGIN VIDEOTAPE)

SEN. RAND PAUL, (R), KENTUCKY: People here in town think I'm making a huge mistake. Some of them, I think, secretly want there to be an attack on the United States so they can blame it on me.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT (voice-over): Kentucky's two Senate Republicans at odds --

UNIDENTIFIED MALE: The Senate will be in order.

[02:35:00] KOSINSKI: -- over allowing parts of the Patriot Act to lapse, including the bulk collection of American's phone records.

SEN. MITCH MCCONNELL, (R-KY), SENATE MAJORITY LEADER: That would mean disarming completely and arbitrarily based on a campaign of disinformation in the face of growing aggressive and sophisticated threats. That is a totally unacceptable outcome.

KOSINSKI: But that is what happened last night. The programs expired. Senator Rand Paul blocked even an extension of them.

PAUL: I object.

KOSINSKI: He opposes the bipartisan bill passed by the House that puts the data collection in the hands of the phone companies, saying that's still the same overreach, that there are other ways to get the same info. He put out a plan of his own.

PAUL: Let's hire 1,000 more FBI agents. Let's hire people to do the investigation and quit wasting time on innocent American people.

KOSINSKI: Today, the White House responded like this.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: What we have seen is a whole lot of posturing within the Republican Party. There's a lot of politics being played on this, and unfortunately, it's coming at the expense of the national security and civil liberties of the American people.

KOSINSKI: Yet, the White House won't say definitively if the American public is at greater risk because of the lapse, won't give any examples of times the programs worked, calling them important tools that have yielded information not found through other means.

UNIDENTIFIED SENATOR: We need to be as vigilant as possible.

KOSINSKI: The war right now at home is political. Republican Senators slamming Paul's rhetoric. SEN. DAN COASTS, (R), INDIANA: Some of the facts have been

misrepresented. I listed some quotes from what Senator Paul had said that simply is not true. Obviously, he is running for president.

(CHEERING)

(END VIDEOTAPE)

CHURCH: Michelle Kosinski reporting there.

Despite all of the political infighting, a new CNN/ORC poll shows 61 percent of Americans want the Patriot Act renewed while 36 percent think it should not be reinstated. Meanwhile, 44 percent of people polled say the risk of terrorism in the U.S. would increase without the NSA programs, compared to 52 percent who say it will stay the same.

BARNETT: Still to come, Caitlyn Jenner introduces herself to the world. Next, the Olympian formerly known as Bruce makes her debut.

(COMMERCIAL BREAK)

[02:40:31] CHURCH: "Call me Caitlyn," those are the word gracing the front cover of "Vanity Fair's" July issue.

BARNETT: Along with them, the first public photo of Caitlyn Jenner, formerly known as Bruce, the reality TV star, Olympic gold medalist.

Randi Kaye has her story.

(BEGIN VIDEOTAPE)

BRUCE JENNER, FORMER OLYMPIC GOLD SWIMMER: Bruce always had to tell a lie. He was always living that lie.

RANDI KAYE, CNN CORRESPONDENT (voice-over): Caitlyn Jenner talking about her former self, Bruce Jenner, opening up about her transition during this two-day photo shoot with Photographer Annie Liebovitz for "Vanity Fair's" July cover.

JENNER: Caitlyn doesn't have any secrets. As soon as the "Vanity Fair" cover comes out, I'm free.

KAYE: This is the cover Caitlyn is talking about, a very different cover than Bruce Jenner's 1982 "Playgirl." We last saw Bruce back in April when he sat down with Diane Sawyer, his last interview as a man.

JENNER: My brain is much more female than it is male. It's hard for people to understand that. But that's what my soul is.

KAYE: Bruce had been taking hormones, had his body hair removed, his nose fixed and his trachea shaved. But it was his facial surgery back in March that completed the transition and Caitlyn's new look.

JENNER: I was probably at the games because I was running away from a lot of things. Very, very proud of the accomplishments. I don't want to diminish that accomplishment.

KAYE: That accomplishment landed Bruce Jenner in the history books. He broke the world record in the 1976 Olympics winning the decathlon at just 26. He was the guy on the Wheaties box.

(BEGIN VIDEO CLIP)

ANNOUNCER: Wheaties is the breakfast of champions.

(END VIDEO CLIP)

KAYE; In this extensive 22-page cover story, Caitlyn reveals that during speeches given after the Olympics, she'd wear a bra and panty hose under her suit. Caitlyn also shares she suffered a panic attack the day after that ten-hour facial feminization surgery, thinking to herself, "What did I just do to myself."

(on camera): The article also reveals Caitlyn Jenner hosted girls nights where she could dress and feel like a woman. Even her daughter, Cassandra attended, telling "Vanity Fair," it felt like they could just be girls together.

(voice-over): To those who think this transition is a stunt for TV ratings, Caitlyn says think again.

JENNER: It's not about the fanfare. It's not about people cheering in the stadium. It's not about going down the street and everybody giving me a that-a-boy, Bruce, pat on the back. OK? This is about your life.

[01:25:15] KAYE: A life to be lived now as Caitlyn Jenner.

She posted this on Twitter, "I'm so happy after such a long struggle to be living my true self. Welcome to the world Caitlyn. Can't wait for you to get to know her, me."

Randi Kaye, CNN, New York.

(END VIDEOTAPE)

BARNETT: Speaking of Twitter, Caitlyn Jenner received a very warm welcome online. In fact, it was a record breaking one. She hit one million followers in just over four hour. That set a new Guinness World Record. Jenner is close to reaching the two million mark. In case, Twitter users are using the wrong pronoun when discussing the Olympic gold medalist, there is a bot that sends out reminders of Jenner's correct gender. Sparked a conversation. What transgendered people go through?

CHURCH: For the most part, people seem supportive. Some people are very confused. Other people sending tweets, I really don't care. For the most part, people are divided into haters, the supporters. You are really seeing people who are confused and want more information on this. It is an extraordinary process for him.

BARNETT: He, now she, lived her life in public. It's almost like, taking this, audience along with you. Quite fascinating.

CHURCH: It is, indeed.

A very short break now. Still to come, you may want to rethink posting those selfies. Coming up, how one photographer is making a profit off photos that other people take.

Back in a moment.

(COMMERCIAL BREAK)

[02:48:43] BARNETT: Welcome back. Take a look at some of the pictures around us at this moment.

Rosemary, check it out. Images I have shared on Instagram.

Check out Errol's window. What it looks like.

CHURCH: There you go. Although users probably assume they have right to these posts, in some cases they actually don't. Now, an American photographer is causing quite a controversy by making a profit off of photos of strangers. Richard Prince blew up screen shots of other people's Instagrams and hung them at an art fair in New York.

BARNETT: The crux here is that almost all images were reportedly sold for a whopping $90,000 each, including this one here. The Instagram user had this to say about Prince when she found out what was going on, quote, "No I did not give my permission. And, yes, the controversial artist, Richard Prince put it up anyway. No, I am not going to go after him. Nope, I have no idea who ended up with it."

CHURCH: There you go. Prince has been re-photographing for years now, taking pictures of other photos and altering them. In response to the growing criticism, Prince posted this bizarre message on Twitter. And he has yet to compensate any of the original photographers.

So is what Prince doing legal?

[02:50:05] BARNETT: Christopher Buccafusco joins us from Seattle. He's a professor of law at Cardozo Law School.

We're all wondering, as we watch this, if an artist takes your Instagram images or selfies even, do you have legal standing to them?

CHRISTOPHER BUCCAFUSCO, PROFESSOR OF LAW, CARDOZO LAW SCHOOL: Well, as most things in the law. It depends. It depends on the circumstances for which you made the images. And it depends on the ways in which the artist used them.

BARNETT: The way in which we are seeing this artist use images is there is a slight modification. It's kind of referred to as appropriation art. You take some one's religional work and tweak it, essentially. And pop art especially based on this for decades. It stands on something called fair use as well. So in the context of people posting images and another artist doing what we are seeing here and selling them for tens of thousand of dollars, where does the law stand in this situation?

BUCCAFUSCO: So the law makes this kind of behavior generally copyright infringement. If you take creative works and republish them in ways that will be copyright infringement. The fair use clause in the United States copyright law says certain behavior. Ones we think are valuable, good for society, add creativity, those aren't copyright infringement, those are OK. That's what the law said previously in a case. Richard Prince was sued by another artist, when he used some of his photographs in a different set of appropriation art images.

BARNETT: So you just have to be mindful and cautious of that. But we saw, and we do see similar things in music as well. Robin Thicke's "Blurred Line" similar to Marvin Gaye's "Give It Up." The Gaye family awarded $7 million. Do you have to prove your original work is valuable to take some one to court and prove the copyright?

BUCCAFUSCO: Surprisingly not. So the situation is different there. In the situation with Marvin Gaye and Robin Thicke, two people competing in the same industry. At least the courts seem to think. People who are buying the Marvin Gaye song may be in the market for the Robin Thicke song. In circumstances like they were, Richard Prince and Instagram images, it's unlikely any body purchasing images on line, if they were for sale, will be dissuaded from doing so because of the Richard Prince images exist.

BARNETT: To be clear, you would expect anything on Instagram is fair game for the world, would you?

BUCCAFUSCO: Not fair game for the world. It's going to depend on the kind of things people are making use of works for. If Richard Prince or some artist is posting original images onto Instagram as a way to market and sell further copies of them, if some one comes along and recopies those and attempts to sell those, it looks look a problem. So, this is the situation with the Internet. Right? It's got to figure out the cases in which people are doing something new and creative and situations where there's a possibility for market substitution.

BARNETT: New frontier for all of this, legal, kind of, wrangling.

Christopher Buccafusco joining us from your web cam in Seattle. Thank you for joining us.

BUCCAFUSCO: Thank you very much.

BARNETT: Posters beware, basically.

CHURCH: Yes.

BARNETT: A high-speed police chase in the U.S. state of Texas ended in dramatic fashion with two suspects leaping off the interstate overpass. Look at this.

CHURCH: It started with police chasing several suspects after a traffic stop. It ends with two suspects jumping out of their car, darting across six lanes and leaping over the concrete barrier. Three suspects have been taken into custody. How about that?

BARNETT: Risky stuff there.

CHURCH: Indeed.

We are marking a special anniversary here at CNN. I'm sure you have heard. The world's first 24-hour news network went on the air the first time 35 years ago.

BARNETT: Pretty incredible to mark this massive anniversary we take a look back now at some of the many defining moments in our decades of coverage of the first gulf war when the bombs begin to fall.

(BEGIN VIDEOTAPE)

UNIDENTIFIED CNN CORRESPONDENT: We are going to Bernard Shaw in Baghdad.

BERNARD SHAW, FORMER CNN CORRESPONDENT: Out of my mouth came the word --

Something is happening outside.

You are damn something is happening. War is breaking out all around you.

The skies over Baghdad have been illuminated. We are seeing bright flashes going off all over the sky.

The walls were shaking. The windows were vibrating. The concussions were blowing us against the wall.

[02:55:05] BOB FURNAD, FORMER CNN EXECUTIVE PRODUCER: We have now been on the air, 20 minutes.

PETER ARNETT, FORMER CNN CORRESPONDENT: Now the sirens are sounding for the first time. The Iraqis have informed us.

FURNAD: The light goes dead.

They just cut the light.

Everybody is stunned. It's totally silent. And you can feel the tension in that room.

SHAW: And John Holliman said it is a battery. Battery is dead.

FURNAD: Of course, our biggest fright was that the bomb had hit the hotel where they were.

UNIDENTIFIED MALE: Baghdad? The line's dead.

FURNAD: There was a hush in the control room.

SHAW: We are running around trying to find the batteries. Find it. Holliman does a work around. JOHN HOLLIMAN, FORMER CNN CORRESPONDENT: Hello, Atlanta.

SHAW: We come back on the air.

HOLLIMAN: Atlanta, this is Holliman. Not sure if you can hear me or not. I'm going to talk to you as long as I can.

FURNAD: There is a collective sigh. Then you hear shoulders drop down as tension leaves people's bodies.

WOLF BLITZER, CNN ANCHOR: The whole world was watching CNN, the only ones with reporters in Baghdad.

(END VIDEOTAPE)

CHURCH: A part of CNN's long history there.

Thank you for watching CNN NEWSROOM. I'm Rosemary Church.

BARNETT: I'm Errol Barnett.

Stay with us. More to come.

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