Return to Transcripts main page


White House Bomb Threat Prompts Evacuation of Press Room; Fight for Iraqi city of Baiji not over yet; Seventh MERS-related death reported by South Korea; ISIS makes dramatic gains since fall of Mosul; Jeb Bush visits Berlin during European tour; Hastert accused of lying to FBI, hiding bank transactions; U.K. parliament backs U.E. referendum bill; Possible e- cigarette ban has experts divided; Freerunner climbs London's Wembley arch

Aired June 9, 2015 - 15:00:00   ET




MAX FOSTER, HOST: Well, we are currently monitoring that situation at the Whitehouse in Washington where in just the last hour both the White House

briefing room and the North Lawn were, for a short time at least, evacuated.


Reporters have now reentered the press briefing room but these were the moments reporters were asked to leave after according to the Secret

Service. Saying a bomb threat had been called in to the police department targeting the briefing room, the President and his family were not moved

during the evacuation. Let's take a quick look at the situation as it played out then with Whitehouse Press Secretary, Josh Earnest addressing

the media.

(Inaudible - cross-talk)


FOSTER: So quite a calm situation at least. After the re-starting of the press conference Josh Earnest spoke to the media. Here's a look at what he

had to say.


JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: Shortly before 2:00 o'clock today a telephonic bomb threat concerning the room that we are now all in

was called into the Metropolitan Police Department.

The local police department contacted secret service officials who determined that for the safety of all of us they needed to evacuate the

room and to sweep it. Fortunately here at the Whitehouse the secret service maintains the resources that are necessary to quickly make the room

safe and make sure that it's safe for all of us and they did that quickly and now we're ready to re-start.

FOSTER: Back to normal then. But earlier on Capitol Hill, police cleared a hearing on the Transport Safety Authority. Officers can be seen on

camera doing a cursory check for a suspicious package, so people very much on edge there.


Iraqi officials meanwhile say they are still dealing with pockets of resistance in Baiji after declaring the city liberated from ISIS.


They tell CNN the city's not completely under government control. The U.S. official agrees the fight is far from over saying ISIS still appears to

hold about half of the city.

Iraqi forces are also battling to re-take the critical oil refinery in Baiji. The counter-offensive against ISIS could pave the way for a much

larger operation to try to recapture Mosul. It's been exactly a year since ISIS over ran Iraq's second largest city taking the world very much by



Nearly half of Mosul's residents have fled since then and many are losing hope of ever returning to their homes.

Senior International Correspondent, Ben Wedeman, joins me now from Baghdad. You've been hearing the stories?

BEN WEDEMAN, SENIOR INTERNATIONAL CORRESPONDENT: Yes, for many of these people it's a very bitter anniversary. When they left Mosul last summer

they thought that they would soon be able to go home but at this point after one year of moving from place to place many have given up hope

they'll ever go home.


WEDEMAN: Once upon a time it was a school now it's a home of sorts for 48 Christian families who fled Mosul now a year under ISIS' control.

In the school's makeshift kitchen (inaudible) (Karim) appeals to anyone who can help them.

Find a solution for us it's enough she says, we're tired. What's the solution? I don't know she replies, either they take us out of here or

send us home, do we have to stay in this school or a tent?

They've all applied without luck so far to emigrate.

We're finished says (Linda Jahnan), our future, our children, our men have been destroyed. We're too afraid to go out and find work. If only someone

outside Iraq would let us emigrate we have no hope left here.

They live off private donations and some help from international relief groups.


Mosul fell to ISIS a year ago and since then these people have moved from one place to another ending up here in this empty school in Baghdad. And

when they look back over the events of the last year most of them say they don't think they'll ever return home.


In better days Mosul was half a day's easy drive from Baghdad. Today under ISIS it might as well be on the far side of the moon.

Iraqi army veteran (inaudible) scoffs at the chances of ever going back.

1 in a hundred, one a million he says. He fought the Iranians, he fought the Americans but ISIS is an enemy of a completely different order.

It's an illness he tells me, it's impossible to cure, cancer can be cured, tuberculosis can be cured, almost every illness can be cured but not this


After the fall of Mosul ISIS pushed Iraqi forces out of large swags of Iraq, some towns like Tikrit and now Baiji have been re-taken but others

like Ramadi last month have fallen to ISIS.

From their school turned home these refugees for Mosul can only hope the tide somehow turns or a door opens for them somewhere far, far away.


WEDEMAN: And just to underscore the danger, not just in Mosul but here in Baghdad this evening, a car bomb went off on Palestine Street in the

eastern part of the city killing two people, wounding seven, Max.

FOSTER: OK Ben, thank you very much indeed for that.

Well the world has watched with alarm as ISIS expands its reach across Iraq and Syria and beyond. Coming up we'll look at the militants dramatic

battlefield gains and get some expert analysis on the international fight to stop them.

Well last night we said it was coming closer but tonight an inauspicious milestone has been passed.


More than 100,000 migrants have reached Europe by sea this year.

[15:09:55] As you can see from this graph this is how many have made the journey just since January these stats according to the UN Refugee Agency.

They say the numbers are slightly higher than the levels reached this time last year, most of the migrants are leaving Turkey and Libya and travelling

across the sea to land in Italy and Greece.

Well the reality of the sheer number of people arriving on European shores is very telling indeed. In Greece the island of Kos has taken thousands of

migrants this year leaving its coastguards with a heavy load to bear in search and rescue efforts. Isa Soares now reports.



ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: The Hellenic coastguard have been patrolling the seas pretty much all night. The weather is not so good

today but we have come never the less across the dingy.

These five men arriving rowing as you can see, paddling their way to Greece. The Hellenic authorities now will move slightly back so they can

actually move with them, trying to bring them on shore, to safety.

The distance between Turkey and Greece is something like six kilometers so for many this is indeed a fast route. And what we have seen in terms of

the people coming here there seems to be a lot more Syrians than before. They used to go to Italy via the Mediterranean, they're now coming here

because it is so much quicker.

Temperatures as you can see are not great, it's somewhat cloudy, the waters are somewhat choppy too but that's not stopping boatload after boatload of

migrants from arriving here. The coastguards work tirelessly to make sure their number one priority is to have - to make sure that they are safe.

As you can see it is very tough to bring them onboard to safety trying to keep them here, but they have a phenomenal track record and they are proud

of it.

They're now boarding the boat with very few belongings they had brought with them. We don't know their nationalities, we have asked them, we're

not getting any answers. Clearly very shocked, we have seen the majority from Syria, some 70 percent but also many from Afghanistan and Iraq, many

telling us this is just the tip of the iceberg. Isa Soares, CNN, near Kos, in Greece.


FOSTER: Still to come, two convicted murderers in the U.S. state of New York are still on the loose four days after a brazen escape.


And one source, close to the investigation, says the men appear to be on foot. We'll have a live report next, stay with us.




FOSTER: Welcome back. Now after four decades in solitary confinement a U.S. prison inmate may be about to walk free.


Albert Woodfox is the last imprisoned member of the so called Angola three who were accused of killing a prison guard in 1972.

[15:14:59] Now a Federal Judge in Louisiana as ordered Woodfox to be released. Woodfox was always claimed - or has always claimed that he's

innocent, and had been asking for a new trial after his murder conviction was overturned last year. The judge says because of his age, health, and

no confidence that Louisiana would give him a fair trial, he should be released.


A law enforcement source meanwhile says two convicted murderers who planned an elaborate prison break are now on the run on foot.


The source says apparently there wasn't a driver waiting for the convicts after they escaped from prison in upstate New York. An active search is

now underway in the town of Willsboro, New York, after a resident spotted two suspicious men. Polo Sandoval, joins us live from Dannemora, New York,

not far from the prison.


So they've managed to ramp up the search now because they've got a possible sighting?

POLO SANDOVAL, CNN INTERNATIONAL CORRESPONDENT: That's right, Max. Specifically about 48 km just south of where we are right now that's where

all of this is playing out. Dozens of authorities really on the ground, in the air, are scouring fields and farms trying to look for these two

individuals spotted overnight.


At this point one of the residents there in the small town of Willsboro, New York, which is home to only about 2,000 individuals called in a tip to

authorities after noticing two people, two strange individuals walking down a lonely road in the middle of the night in the rain that clearly a red

flag and an indicator as that person tried to drive towards those two people, they fled into a field. So again police officers have been

following up on that lead most of today. It is perhaps one of the strongest tips that's been called in. One of the strongest leads at least

that has been called into authorities here in the last four days since that very elaborate prison break escape actually happened here.

We are now getting indication that these two individuals likely did not get picked up once they emerged from a manhole cover just outside the prison

perimeter which leaves authorities to believe that it is still possible that they could be either in this neighborhood or in one of the many

communities here in upstate New York. And again Max I can tell you there are several different theories about where they could be and of course how

they were able to pull off this very, really quite impressive escape. Max.


FOSTER: In terms of information coming out from the prison as well, any more information about how they managed to get out?

SANDOVAL: Right, yesterday we had an opportunity to speak to the former maintenance manager, now recently retired, of this facility; of the

Clinton, this prison here, the - we do know that really it's quite impressive. These individuals now potentially cut through the steel wall

of their cell to access a catwalk that ran along the corridor there behind the cells.


From there they were able to cut into a series of pressure pipes, steam pipes, and then access this very intricate level of practically a maze of

walkways and underground tunnels and then eventually cut their way out of that pipe to emerge just outside of the prison perimeter there in the

neighborhood not very far from where we're standing.

So again, authorities are trying to find out how they were able to get their hands on the tools that they used to cut their way out. They have

spoken to one female employee at this prison believed to have at least known these two individuals but at this point no charges have been filed.

She has not been arrested. There's still so many unanswered questions in this case, Max.


FOSTER: Really, a complete mystery, Polo, thank you very much indeed.

Also staying with the U.S. there are conflicting opinions now over whether race played a part in a confrontation at a team pool party in the U.S.

state of Texas over the weekend.


Now a video showing a white officer pinning a black teenage girl to the ground is going viral and sparking protests.

Well on Monday protestors marched to the pool where the incident happened chanting "black lives matter." The officer involved in the violence has

been identified as Eric Casebolt. He's been placed on leave by the McKinney, Texas Police Department and investigation is underway.


Fire fighters in Ukraine are battling a huge fire at an oil depot outside the capital Kiev. The blast happened close to a munitions facility and an

airbase. The government denies terrorism is involved and has evacuated a two kilometer area around the site after fears there could be a repeat

explosion. Phil Black, has more.


PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: The fire started in one storage tank on Monday afternoon. It spread quickly creating a billowing

tower of black smoke. Initial efforts to contain the flames failed and they consumed more storage tanks through the night. Officials say there

were huge explosions which injured and killed some of those trying to fight the fire.

Dramatic images like these are usually associated with revolution and war in Ukraine. The cause here is being debated. The operating company says

it suspects this was deliberate and possibly a terrorist attack.

[15:20:05] The government quickly denied the possibility of terrorism but officials are looking at arson and other possible causes.

This is close to the capital Kiev, a long way from the east of the country where separatists are still fighting government forces. But this is

further proof Ukraine is a country with many problems; a military crisis, (inaudible) economy entrenched corruption and inefficiency. The government

is investigating why this site was built only a few years ago sitting next to a munitions storage facility which had to be cleared quickly once the

fire started.

A real video shot late on Tuesday showed much of the site blackened and burnt with the fire still raging. Authorities say it will take at least

another day to bring under control. Phil Black, CNN, London.


FOSTER: Coming up when The World Right Now continues, big changes ahead for one of the world's biggest banks.


HSBC changes direction and shifts its focus east in a new massive restructuring plan. Stay with us for details.





FOSTER: Let's have a look at the business world right now. The Dow Jones industrial average hardly moved. It was down a bit earlier on in the day

but there's not much news really coming out. The main stories really today were a lack of progress in talks between Greece and its lenders about

whether or not they can reach some sort of deal, that's the ongoing story that came out of Europe earlier on. Those markets were down as a result.

As well also some concern about Chinese inflation data suggesting that economy still struggling a bit.

So they were the two big themes and a part from that few corporate results coming through. The S&P was up, NASDAQ was down and this is what was

happening across Europe today really dominated by the lack of progress as I say on the Greek talks.


Europe's biggest bank, HSBC has announced plans to cut as many as 50,000 jobs as part of a new global strategy.


Half of the positions will be eliminated whilst the other half will be lost once HSBC sells its businesses in Brazil and Turkey.

The corporate cull comes as a way to reduce costs while the banking giant considers moving its headquarters out of the U.K. The restructuring plan

is designed to save HSBC $5 billion annually by 2017.

With HSBC now potentially looking east for its future, what does that mean for the bank here in Europe? Let's bring in CNN's Maggie Lake, live from

New York.


We shouldn't under estimate - shouldn't sort of play down those numbers, a huge amount of job losses but it's the shift really isn't it in the focus

of the bank which is gaining most attention?

MAGGIE LAKE, CNN CORRESPONDENT: Yes, that's right Max they are huge numbers. I mean this is a downsizing of a bank that once had very big

global ambitions.


LAKE: It's such a recognizable site around the world and certainly in cities where you and I both sit. I mean this is a powerhouse but it is one

that is looking to become more nimble and really shift its focus back to its roots, back to Asia. This is what the CEO, Stuart Gulliver, had to say

about the big changes today; "we recognize that the world has changed and we need to change with it. The world is increasingly connected - expected

to show high growth and become the center of global trade over the next decade."

And Max, this is really a continuation of what he's tried to do. Layoffs, downsizing started back in 2011 when he took over.

[15:25:09] It hasn't really done the trick as far as investors are concerned. Interestingly you mentioned considering moving the headquarters

over - back to Hong Kong from London, part of this of course has to do with political considerations, they're concerned about the U.K. considering the

possibility of leaving the Euro. And if they're going to ship their business back to Asia it would make sense, but this also has to do with the

bottom line. It's getting increasingly more expensive and more difficult to do business in the U.S. and the U.K. after the financial crisis and in

the wake of currency manipulation and (inaudible) rigging. A regulation has really stepped up, red tape has stepped up, so HSBC also looking at

that landscape and considering moving to Asia where you don't have some of those restrictions, again the continuation of a plan.

Investors not that impressed so far, some are saying HSBC needs to go further and actually break up. Right now the CEO is saying that is not on

the cards, Max?


FOSTER: It's interesting he talked about wanting the bank to become China's International Bank, you know this sort of merging of the Hong Kong

and Chinese economies but how would you explain that? Where do you think he's going with that?

LAKE: Listen, there's a lot of opportunity there certainly. But HSBC is eyeing it and so is everyone else. A lot of banks are considering this

landscape and making the same kind of decision. The question is does their long history and do their roots there give them an advantage that other

people don't have?

I think the other part of the conversation we've been talking about Max, is while there's great opportunity there's also a lack of transparency. There

are concerns about China slowing down and there is concerns about speculative bubbles arising there. We know what happened with speculative

bubbles here and how badly that hurt the banking industry. So with opportunity comes great risk. Again, is HSBC up to that challenge? That

we're going to have wait and see and investors right now waiting as well and being a little bit cautious about this decision.

FOSTER: OK, Maggie, thank you very much, a fascinating story.

The latest world news headlines just ahead for you. Plus Mosul one year on.


We'll look at how life in Iraq's second largest city has changed under the iron grip of ISIS. Stay with us for that.



MAX FOSTER, HOST: Hello. Welcome back. This is what's happening in THE WORLD RIGHT NOW.

Reporters have now reentered the White House press room after a bomb scare. The Secret Service said the threat had been called into the police

department specifically targeting the briefing room. The north lawn was also evacuated. The president and his family were not moved.

[15:30:03] Iraqi officials say they are still encountering pockets of resistance in Baiji after declaring the city liberated from ISIS. They

tell CNN the city is not completely under government control. A U.S. official agrees the fight is far from over saying ISIS still appears to

hold about half the city.

More than 100,000 migrants have crossed the Mediterranean to Europe this year alone. Aid agencies have sited a dramatic increase in arrivals with a

vast majority of those risking their lives in (INAUDIBLE) boats or dinghies to land in Italy and in Greece.

South Korea says a seventh person has died of Middle East Respiratory Syndrome. Eight more MERS cases have been confirmed, bringing the total in

this outbreak to 95. Almost 3,000 people who may have been exposed to the virus are under quarantine.

While many people never saw it coming, ISIS took the world by surprise a year ago capturing Iraq's second largest city of Mosul. Since then,

militants have swept across large parts of Iraq and Syria and are fighting to expand their reach far beyond.

Here's Tom Foreman.


TOM FOREMAN, CNN CORRESPONDENT: The caliphate claimed by ISIS and officially recognized by no other has been forged from brutality and blood

- changed from a radical fantasy into a stunning reality.

And this is where it all began - in the northern parts of Iraq and Syria, where ISIS took advantage of turmoil and weak government control.

Accordingly, many outside analysts thought that this would be a temporary advantage, and ISIS could be quickly defeated. ISIS proved otherwise.

First came the push for territory. In a series of vicious attacks, ISIS began capturing cities, roads, oil fields and more. The Iraqi army often

retreated, and on the Syrian side government troops were too busy with their own civil war.

Ultimately, the United States led a coalition of forces to bomb ISIS positions.


BARACK OBAMA, U.S. PRESIDENT: The only language understood by killers like this is the language of force.


FOREMAN: For a while, it seemed to work. The terror group lost leaders and troops by the thousands. The ISIS response - a media campaign of

horrifying videos of mass murders and one vicious beheading after another. The pattern - introduce a hostage to the world, make demands -


UNIDENTIFIED MALE: You now have 72 hours to pressure your government in making a wise decision.


FOREMAN: - and then murder him.

When a Jordanian plane was shot down, ISIS celebrated by burning the pilot alive. Such atrocities began drawing radical adherents from around the

world - young people who traveled from places like Europe, the U.K. and America to join the fight. And others raised the banner of ISIS where they


Although there is little evidence of ISIS coordinating attacks abroad, from the Charlie Hebdo killings in Paris to the gunmen who terrorized Ottawa to

the recent gun fight in Texas, ISIS has inspired lone wolves.

And all of that has expanded the influence of ISIS. Analysts now say the terror group has thousands of supporters in dozens of nations far beyond

the territory they control, and that all complicates the battle against ISIS.


OBAMA: We don't yet have a complete strategy -


FOREMAN: And western analysts admit they gravely underestimated the group's strengths from the start. They thought ISIS was about 10,000

fighters. Today, they say, it could be 30,000 or more, and ISIS seems to be growing (INAUDIBLE).

Tom Foreman, CNN, Washington.


FOSTER: To get some perspective on all of this, Fawaz Gerges, a friend of the program (ph), of course (ph), chaired the Contemporary Middle Eastern

Studies at the London School of Economics. Thank you so much for joining us. You saw that map of the region, which is frightening enough. But this

is the core, isn't it? This is what we're talking about - we're talking Iraq and Syria. Where are we now?

FAWAZ GERGES, LONDON SCHOOL OF ECONOMICS: Well, I mean, Max, let's take stock of where we are. Last June ISIS basically captured Mosul, the second

largest city in Iraq. Six months ago, we were talking about how do we recapture Mosul? Now, we're talking about the battle for Ramadi. That is

they captured Ramadi last month.

In a way, ISIS really has won the first (INAUDIBLE) rounds. The battle for Mosul and the battle for Ramadi.

They are resilient. They are dynamic (ph). They are agile. More than 6,000 American air strikes - more than 10,000 ISIS members who have been

killed by the Americans. Yet, they're not only defending their positions, they are on the offensive, though, in Iraq and Syria. Just a few weeks

ago, they captured the historical and one of the greatest historical cities in Syria - Palmyra.

[15:35:04] This tells you that basically ISIS continues to go on the offensive and defend its positions.

FOSTER: And, speaking about President Obama at the G7, this is what he said.


OBAMA: When a finalized plan is presented to me by the Pentagon, then I will share it with the American people. It's not - I - we don't yet have a

- a complete strategy because it requires commitments on the part of the Iraqis as well about how refurban (ph) takes place - how that training

takes place. And, so, the details of that are not yet worked out.


FOSTER: So, the coalition doesn't have a strategy. ISIS are expanding. There's a clear winner here, right?

GERGES: Well, so far, absolutely. I mean, you - why is ISIS resilient? Because it's exploiting the weak links that exist in Iraq and Syria. It's

exploiting the contraction - the political and social contractions in Iraq - the rift between the Sunnis and the Shias (ph) - the rifts between - I

mean the Iraqi government and the Kurds. And in Syria you have all our war (ph).

So, what's the American strategy, Max? It's based on two elements - air power and local forces - training air forces. We know that more than 4,000

air strikes - ISIS has been able to adapt and position its forces within urban area. It has been - the Americans don't actually want to kill many

civilians. That's why they're very careful. And the local forces are not ready yet.

As we have seen in Ramadi -


GERGES: - the Iraqi security forces are not - actually don't have the leadership - don't have - not just - I mean the - the national unity, and

the rift - this - I mean this horrible fault line -


GERGES: - between Sunnis and the Iraqis is allowing ISIS to tap into the sectarian strife and have a social base of support. I mean you and I - we

have not mentioned a single word about the support that ISIS has in Iraq and Syria. It's using local Sunni communities because it's portraying

itself as a defender (ph) of Sunnis.

FOSTER: Nick Paton Walsh had been reporting on that assault on Ramadi from the Iraqi forces. They're gearing up aren't they? This is what he was

telling us last night.


NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Here, caught between the ISIS towns of Ramadi and Fallujah, they face a thousand ISIS

they think. But here, he says, he sees only a few with long beards and a flag here.

But soon, ISIS fire back. This is what happens when you poke that snake.


FOSTER: But Ramadi really matters, doesn't it? Just in terms of psychology, regaining Ramadi means, at least, there's some sort of movement

in the coalition in the Iraqi side against ISIS.

GERGES: Every town and every city, Max, is important. But so what - the morning after? We're not talking about - really the question is not

military - the question is political. Without basically rebuilding the process of trust between Sunnis and Shiats (ph) - without rebuilding the

state institutions, even if the Iraqi government takes over - captures Ramadi tomorrow - so what? The rift continues. And more important, Max,

than the military progress that ISIS has made, it has seized the initiative. It has seized the initiative. It's a winning initiative, and

that's why this particular narrative - seizing the narrative is bringing ISIS more recruits from Iraq, from Syria and worldwide as well.

FOSTER: OK, Fawaz, you'll be back taking stock again. We'll see which way the motor - the - the machine is moving against ISIS or the other way.

Thank you very much indeed.


FOSTER: Now, in other news - former Florida Governor, Jeb Bush, is polishing his foreign policy credentials actually during a six-day European

tour. The former governor is expected to announce that he's joining the Republican ticket for U.S. president next week. And he's trying to prove

himself on the international stage.

He addressed the Economic Council of Germany's Christian Democratic Party in Berlin. And he talked there about the conflict in Ukraine.


JEB BUSH, FORMER GOVERNOR OF FLORIDA: Ukraine, a sovereign European nation, must be permitted to choose its own path. Russia must respect this

sovereignty of all of its neighbors. And who can doubt that Russia will do what it pleases if aggression goes unanswered.

Our alliance, our solidarity and our actions are essential if we want to preserve the fundamental principles of our international order - an order

that free nations have sacrificed so much to build.


FOSTER: Well, he was once one of the most powerful Republicans on Capitol Hill, and (INAUDIBLE) the presidency. And today former U.S. House Speaker,

Dennis Hastert, pleaded not guilty on charges that he tried to hide large cash transactions and then lied to the FBI about it.

The 73-year-old is accused of trying to hide $3.5 million in payments to someone who accused of past sexual misconduct.

[15:40:03] Hastert hasn't made any public statements since he was indicted on May the 28th.

CNN's Ryan Young joins me now live from Chicago where Hastert appeared in court today. Just describe what this - this means to America - such a

prominent figure there.


RYAN YOUNG, CNN CORRESPONDENT: Max, a lot of amazing images today - that's the only way you can really put it, because you watch as he got out of that

car and walked toward that building, under indictment. (INAUDIBLE) about one time a man who was the third most powerful man in this country.

And then all these photographers surrounding him - really a perp walk - a walk of shame. Obviously he's being charged with this fraud. But a lot of

people are talking about these sexual abuse allegations from when he was a wrestling coach in a small city outside of Chicago.

A lot of folks wanna know what happens now. We're told the arraignment finished about 10 to 15 minutes ago. It was a short arraignment. We're

told he has posted a bond of forty-five hundred dollars. Right now we have a camera trained on the front of the door because, at any moment, he's

expected to out.

We are actually expecting his attorney to talk about some of these allegations. Of course, he's being charged with bank fraud. In this

country, if you withdraw large sums of money, you have to tell the FBI why you're withdrawing that sort of type of money.

So, it's $1.7 million he pulled (ph) from one bank account. The FBI wanted to know why. When he didn't give them the right reasons, now he's being

charged with fraud.


FOSTER: Has this damaged the Republican Party?

YOUNG: Well, you know the conversation seems right now - everyone's sort of distancing themselves from this conversation. You haven't heard anybody

really talk about or address this cause, of course, we haven't heard all the charges laid out right now. We were hoping maybe in court today we

would hear something.

But you know how this works. This is a first court appearance. He'll probably have mug shot taken today. He'll be released, and he'll walk out,

obviously, after getting that forty-five- hundred-dollar bond.

But then all these details will start - will slowly start to come out. We do know someone who has charged him with these sexual abuse allegations - a

sister of a victim has come forward telling her side of the story. Her brother died in 1995, so he can't speak for himselves (ph). We know

there's someone else out there. So, obviously, as more information starts to come out, we'll probably learn more about the details of this

investigation and what the Feds actually know right now.

FOSTER: Thank you very much indeed for bringing us that.


U.K. politicians have been debating a referendum that could change both the U.K. and Europe. We'll have details for you just ahead.


FOSTER: (INAUDIBLE) here. British lawmakers have overwhelmingly backed a bill which could have profound implications for the U.K. and the rest of

the Europe.

On the table is a referendum on Britain's future inside the European Union, which is a key part of the Conservative Party's election manifesto. Over

the next few months, Prime Minister David Cameron will be negotiating with his E.U. counterpart ahead of that referendum, which could take place as

early as next year.


[15:45:04] FOSTER: It'll be a vote that could change the shape of Europe.

UNIDENTIFIED MALE: European Union referendum bill second reading.

FOSTER: And on Tuesday members of the U.K. parliament had their first chance to debate it.

PHILIP HANMOND, U.K. FOREIGN SECRETARY: Mr. Speaker, this is a simple but vital piece of legislation. It has one clear purpose - to deliver on our

promise to give the British people the final say on our E.U. membership in an in-out (ph) referendum by the end of 2017.

FOSTER: The bill is facing minor opposition only and is expected to pass. After David Cameron won the U.K. general election last month, he's wasted

no time moving forward with his pledge to renegotiate Britain's place in the E.U.

He wants to stay, but he also wants to see a number of changes that'll slow down immigration into U.K., including restricting the amount of benefits

E.U. immigrants to the U.K. can claim and delaying the freedom of movement for citizens of new E.U. member countries.

He also wants greater powers to block E.U. legislation. Once the negotiations are complete, Cameron says he'll put his reforms to the test

with a referendum that could be as early as May 2016.

While it was all smiles in the German Alps for the G7 meeting, the thorny topic is already causing Cameron problems, not least within his own party.

On the international front, some countries like Germany are resistant to Cameron's proposed changes. But German Chancellor, Angela Merkel, showing

signs that she is willing to compromise.

ANGELA MERKEL, GERMAN CHANCELLOR (through translator): The European Union is better off with the United Kingdom as a member. And I believe that

Britain's national interests can be best served by staying in the European Union on the basis of a reform settlement. That is what we both want to

happen, and that is what we will together in the coming months to achieve.

FOSTER: Even Barack Obama has weighed in saying he's looking forward to the U.K. staying a part of the European Union.

With the latest opinion poll suggesting that more than 50 percent of Britons would vote in favor of staying in the E.U., at this stage the

chances of - for exit (ph) seem slim. But David Cameron has said he will not rule out backing a withdrawal if he doesn't get what he wants from his

E.U. counterparts.


FOSTER: Well, coming up, do e-cigarettes really help quit smoking? We'll be talking to the health experts on whether or not they should be banned in

public - after the break.


FOSTER: People who use e-cigarettes in Wales will soon have less places to do so. A new law is set to be introduced banning their use in enclosed

spaces. Wales is not the first place to restrict the use of e-cigarettes. In Europe - Belgium, Spain and Malta - have all adopted similar laws.

Let's speak to two people with different opinions on this. Here is London I'm joined by Deborah Arnott. She's the Chief Executive of Action on

Smoking and Health. She's against the move.

And I'm also joined by the former New York City health commissioner, Dr. Tom Farley, who was involved in the restriction of e-cigarettes there.

[15:50:00] Dr. Farley, if I could start with you, what's your main concern with them? Is it a health risk of e-cigarettes themselves, or the fact

that it - it somehow plays into smoking tobacco?

DR. TOM FARLEY, FORMER NEW YORK CITY HEALTH COMMISSIONER: There's all about e-cigarettes we don't know. Because they're unregulated, we don't

know what's in them. We don't know what the long-term effects are.

But our primary reason for restricting them in New York City had to do with enforcement of the Smokefree Air Law against tobacco smoking. It was very

difficult for restaurants or bars to prohibit tobacco smoking if they couldn't recognize the difference between tobacco smoking and e-cigarettes.

So imagine for a moment, if you're in a crowded bar and there are 20 people who are sucking on something that looks like a cigarette, and then someone

smells tobacco smoke, how do they know who is the one person to stop from smoking?

And, if we lose the smokefree air rule, which is the most important rule we've had to prevent smoking over the last 30 years, we've really lost a


FOSTER: OK. Ms. Arnott, if I could ask you - I mean, it's a very convincing argument, isn't it? And, there's something unnatural, isn't

there, within these e-cigarettes? So, the idea of referring them to tobacco is, in a way, skewing the - skewing the health benefits of e-

cigarettes as a starter (ph)?

DEBORAH ARNOTT, CHIEF EXECUTIVE, ACTION ON SMOKING AND HEALTH: Well, I think comparing them to tobacco is completely wrong. It's smoke that kills

you, not nicotine. These products don't contain tobacco. And that's why our Ministry of Health has made very clear it won't be following Wales.

That's the Ministry of Health in England and why the major health organizations in England just don't support such a strategy.

Basically, the electronic cigarettes are fair less harmful than smoking. And for smokers who can't quit using nicotine altogether, then switching to

e-cigarettes is a much better option. And we've something like 2.6 million smokers taking up e-cigarettes with significant numbers going on to quit.

I think the point about re-normalization - well, it doesn't make sense. These products don't look like cigarettes, and they don't smell like

cigarettes. We think it's up for individual organizations to decide whether or not they want to allow e-cigarettes to be used on their


We don't think it should be subject to smokefree laws, which were put in place basically because of the residual harm caused by second-hand tobacco

smoke. It's not proportionate to include electronic cigarettes in that law.

And our environmental health officers who are responsible for enforcing the smokefree laws agree with us that that wouldn't be a sensible idea and it's

not necessary.

FOSTER: They do at least contain some toxins, don't they? So that, in itself, is a concern. Why would you encourage it?

ARNOTT: In very low levels. We're talking about - you know - smoking is something that kills half of all long-term smokers. There may be minor

health impacts from electronic cigarettes. And we don't know the impact of long-term inhalation of nicotine. But it's the carbon monoxide in the tar

in cigarette smoke that's so deadly.

On top of that, this idea of re-normalization - that it might lead children to take up electronic cigarette use - we've seen smoking rates amongst

children going down rapidly over the last 10 years and continuing to go down as electronic cigarette use has gone up.

And some teenagers experiment with electronic cigarettes, but almost - there's almost no regular use and where it does exist it's amongst

teenagers who have already become regular smokers.

FOSTER: Dr. Farley, what has been the impact on smoking tobacco from the ban in public spaces of e-cigarettes?

FARLEY: I don't think we have enough years' experience to know about that. You know there's just so much about e-cigarettes that we don't know. As I

said, they're unregulated, so we don't know what's in them. And there's a lot of sort of home-brewed e-cigarettes that are sold.

We don't know whether smokers will use them to quit or whether smokers will use them to avoid quitting to tide themselves over during the work day

until they can get a regular cigarette.

And we don't know what happens if a teenager starts using these - becomes addicted to nicotine and then uses that for 20 years. No one knows what

the health impacts of that - is over the long term.

And, so, we don't think that they should be prohibited, but we think that there should be a regulatory framework for those that includes regulation

over the ingredients, and also some restrictions on public use and also restrictions on marketing, because they're being very heavily marketed to


FOSTER: What about just the basic idea that -

ARNOTT: I agree with you.

FOSTER: Yes, carry on.

ARNOTT: So, I was going to say that I agree we need controls on marketing, and we do have those controls in this country. Our Advertising Standards

Authority regulates electronic cigarettes and, in fact, in the European Union from next May cross-border advertising - that's basically television,

radio, print and Internet will be banned.

I - I completely agree. These products shouldn't be being marketed to children. But they should be marketed to smokers. And, actually, we may

not know everything about electronic cigarettes, but certainly the Medicines Regulator in our country looked at these products and came to the

conclusion that they were so much less harmful than smoking that they weren't going to ban them.

[15:55:08] They were going to allow them to be sold.

The regulatory framework is - is being developed. But, actually, by banning them in indoor places - in work places, in pubs and bars and clubs

- you're actually forcing them out onto the streets so more young people will see them - not fewer.

So, even by the sort of standards set by people like Tom, who are against - who are in favor of them being brought into the smokefree laws, because

they don't want re-normalization. It just doesn't make sense.

FOSTER: The normalization argument, Doctor, was a big part of the debate, wasn't it, in New York? Is that - is that because of the concern about

young people? And how much evidence is there actually that they are going on to smoke tobacco after seeing people smoke e-cigarettes?

FARLEY: Well, the issue of normalization gets back to the smokefree air rule. What the smokefree air rule did in New York City and many other

places around the world was it really changed the social acceptability of smoking.

It proved to be much more powerful than just protecting people from second- hand smoke. And if we lose that - if people are starting to smoke indoors again, then we've lost a lot. And then the question is how do we enforce

the smokefree air rule if it's basically self-enforced by bystanders or bartenders or waitresses? And if they can't tell the difference - and many

of these e-cigarettes look just like a tobacco cigarette - then we're gonna lose that very important tool.

FOSTER: OK. Dr. Tom Farley, thank you very much -

ARNOTT: Can I just come in here because actually the -

FOSTER: Very briefly.

ARNOTT: - the evidence from America is very similar to the U.K., which is that there are very few young people using them and certainly very using

them regularly. And it's actually as electronic cigarette use has gone up smoking rates amongst young people have gone down. So, it doesn't support



ARNOTT: - the argument.

FOSTER: OK. Thank you very much. Debate does certainly go on here in the U.K., particularly in terms of Wales. Deborah Arnott, thank you very much,

as well Dr. Tom Farley.

Now, if you have a fear of heights, you probably should look away at this point. This is James Kingston, a freerunner. He spends his time climbing

up some of the world's biggest buildings. Today he was climbing the arch of England's most famous football stadium, Wembley, here in London.

Many times he does it without permission. But today's climb was sanctioned by authorities. Don't look down.

That has been THE WORLD RIGHT NOW. Thank you for watching.