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Confederate Flag to Come Down Today; Greek Government Debates New Debt Plan; Wineries Suffer in Greece; Pope Francis in Bolivia; Chinese Businesses Watch Highs, Lows of Market; Typhoons Target Hong Kong, China; Executions Primary Way of Ensuring North Korean Leader's Authority; FBI Thwarts Multiple ISIS-Inspired July 4th Attacks; Britain: New Terrorist Attacks in Tunisia Likely; U.S. Troop Cuts as Marine General Warns of Russia; Migrant Children Forced to Captain Human Smuggling Boats; Trump Talks Jobs, Winning the Hispanic Vote. Aired 2-3a ET

Aired July 09, 2015 - 02:00   ET

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

(COMMERCIAL BREAK)

[02:00:10] NATALIE ALLEN, CNN ANCHOR: In a matter of hours, this Confederate flag will come down from the state capitol grounds in South Carolina.

Greek submits a new proposal to the Euro Group as thousands rally outside of parliament.

And to a standing ovation, Pope Francis makes an apology to the people of South America.

Hello, I'm Natalie Allen. Welcome to our viewers around the world and in the United States. This is CNN NEWSROOM.

And we begin this hour in the U.S. state of South Carolina where a Confederate battle flag, a fixture on the capitol grounds for years, won't be flying much longer. At 10:00 a.m. local time today, the flag will be removed from the state house grounds and placed in a nearby museum. The fight to remove the flag was reignited last month after a massacre inside a church in Charleston. Nine black worshipers were shot and killed during a Bible study session. Police say the white suspect who posed for pictures, as you can see, with the flag wanted to start a race war.

Here's CNN Alina Machado.

(BEGIN VIDEOTAPE)

(APPLAUSE)

ALINA MACHADO, CNN CORRESPONDENT (voice-over): Surrounded by the very lawmakers who helped make this moment possible, South Carolina governor, Nikki Haley, took a moment to remember the nine lives lost just 22 days ago.

NIKKI HALEY, (R), SOUTH CAROLINA: It seems like so long ago, because the grieving has been so hard. But at the same time, we have all been struck by what was a tragedy that we didn't think we would ever encounter, nine amazing people that forever changed South Carolina's history.

MACHADO: The families of those nine victims present to see firsthand the governor sign into law a bill that will remove the Confederate battle flag from the state capitol grounds, a place it's flown since the 1960s.

UNIDENTIFIED MALE: The pending question is --

MACHADO: Change comes after days of debate that culminated with the passage of a bill of 93-27 vote. The end of a marathon session in the state House that was marked by dozens of amendment introduced by pro flag representatives who believe the flag is a symbol of southern heritage, not hate.

UNIDENTIFIED MALE: This amendment recognizes his access, his reasons.

I'm going to ask you today to support this amendment.

MACHADO: The debate lasting 13 hours. The frustration, palpable.

STATE REP. GILDA COBB HUNTER, (D), SOUTH CAROLINA: Just know that the gig is up. I think we now see what the real deal is.

MACHADO: The turning point in the debate coming when Republican representative, Jenny Horne, a descendent of the president of the Confederacy Jefferson Davis, took to the floor.

STATE REP. JENNY HORNE, (R), SOUTH CAROLINA: I cannot believe that we do not have the heart in this body to do something meaningful, such as take a symbol of hate off these grounds on Friday. And if any of you vote to amend, you are ensuring that this flag will fly beyond Friday.

HUNTER: What Representative Horne did was magnificent. Took a lot of courage. And helped us win the day.

MACHADO: State House Representative Hunter has been in the House since 1992, well before the flag was moved from the dome to its current spot. Seeing the bill signed this morning was a moment, she says, worth fighting for.

HUNTER: I thought it would be removed some day, but not when I'm still here.

(END VIDEOTAPE)

ALLEN: Alina Machado reporting from Columbia. And we will cover the story in a few hours when the flag comes down, of course.

The governor of Missouri is signing in a law many hope will help calm cities like Ferguson. The new law caps how much money governments can collect from traffic tickets. It comes after a U.S. Justice Department report found officers were excessively ticketing drivers, especially African-Americans, to generate revenue in the town of Ferguson. (BEGIN VIDEO CLIP)

STATE SEN. ERIC SCHMIDT, (R), MISSOURI: For the cities that are out there, that are viewing their citizens as nothing more than ATMs, reform is coming. And for the people of this state, and for the people who live in these communities, who have lived in many ways under the fear that they are going to be pulled over, and harassed, because that city needs money, that's going to change. That's the significance of this bill.

JAY NIXON, MISSOURI GOVERNOR: This landmark legislation will return our municipal courts to their intended purpose, serving our citizens and protecting the public.

(END VIDEO CLIP)

[02:05:10] ALLEN: You will recall the federal investigation of the traffic tickets came after the police shooting of Michael Brown in Ferguson last August. His death sparked allegations of excessive police force and bias against African-Americans.

The Greek parliament will spend today debating the government's new plan to save the country from bankruptcy. The spokesman says there will certainly be a deal today. Huge crowds of demonstrators gathered outside the building in Athens on Thursday. The government is hoping to get a third bailout loan from European creditors. In exchange, it is proposing a package of tax hikes and spending cuts. The Greek parliament will meet to discuss that proposal before European leaders meet this weekend.

Let's bring in CNN's Isa Soares.

Isa, it is just before 9:00 in the morning in Athens. You've been there for several days and we've seen Greece come to the brink and come to the brink. And this sounds like something maybe that's hopeful after so many days of uncertainty.

ISA SOARES, CNN CORRESPONDENT: Morning, Natalie. It does seem that way, doesn't it? I think Greeks will be waking up, some of them not very happy with the proposals put through. One newspaper here calling it shocking proposals from the government of Alexis Tsipras. They are asking for a bailout in which 13 billion Euros are worth spending cuts.

Let me show you what media is saying, as well as international media is seeing proposal, what Europe will be considering. 13 billion Euros of spending cuts, magic over red lines that he said he wouldn't budge, seems he is making concessions on that. First one is reforms to the VAT system, to raid se GDP by 1 percent and tax restaurants at 23 percent, Natalie, major red line for him. Now he has given in on them. Third point, very important, is abolishing lower rates, especially rates to island. He said all along, there is no way we will get along with the special rate of the island. Some are penniless. It seems now, that the rich islands, he will completely get rid of the rate. Poorer island he will keep the special rate. So interesting to see what island will actually have to make a sacrifice. He is also making concessions to pensions, another big red line. He is getting rid of a payment like grant to the poor pensioners. He will get rid of that by the year 2019. Other points, raising retirement age. We knew he was happy to do that. That is going to go ahead. Raise in corporation tax to 28 percent. Another key line. Europe wanted it. Greece didn't, but now they have conceded on that front. They also agreed cuts to military spending, roughly 300 million Euros over the next two years, and all of this, reform the system, improving the tax system and battling tax evasion.

Many people saying here, that these are just too harsh measures, Natalie. But if he gets any sort of debt relief or debt restructuring, I think there will be a major deal for Alexi Tsipras.

ALLEN: And they are talking about that from areas of the Eurozone.

Isa Soares, thank you. Another day for Greece. Thank you.

There is a lot riding on the Greek success of the Greek proposal, including the country's future in the Eurozone. The Greek Wine industry is one of many sectors feeling the squeeze from the financial crisis.

Our Phil Black looked into that.

PHIL BLACK, CNN CORRESPONDENT (voice-over): This is one of the world's most ancient wine regions. The hills named for the ancient Greek god who was said to have first taught people here the skills of wine production thousands of years ago.

Georgis (ph) and Tekatos (ph) planting their grapes more recently --

Middle of the '70s. .

BLACK: -- they have endured the country's financial crisis simply because the Greek people love wine.

UNIDENTIFIED MALE: It gives you the happiness and the ability to talk without to be drunk.

UNIDENTIFIED FEMALE: And part of the diet and culture for over 4,000 years. It is part of life.

BLACK: While the volume of consumption remains stable, tastes have changed with the national economy.

UNIDENTIFIED FEMALE: The medium priced wines have suffered. And people are moving to cheaper wines, so bulk wine or bag and box.

[02:10:04] BLACK (on camera): On the scale of human suffering we have witnessed in Greece in recent days, the future of wine trade doesn't feature too highly. This ancient Greek industry considered a key influence in the developments of European culture and civilization is now crippled by the possibility that its relationship with modern Europe is about to change dramatically.

(voice-over): This winery received no new orders for the last week as Greek banks stayed closed. The owners don't know what currency they will be using next week to run the business, the Euro or a much weaker drachma. The consequences of a Grexit could be huge for a business that relies on European supplies.

UNIDENTIFIED FEMALE: Our bottles and corks are imported. The paper for our labels, paper for our cartons, is all imported.

BLACK: As well as oak barrels, machinery, spare parts, filter paper and yeast. All of it comes from outside Greece and could significantly be more expensive if this country runs out of paper Euros.

These grapes ripening in the sun are still a few months to harvest. They will be turned to wine and enjoyed well after Greece set its course, either as a recovering member of the Eurozone or nation struggling alone with perhaps the greatest financial crisis in its long history.

Phil Black, CNN, Greece.

(END VIDEOTAPE)

ALLEN: In a passionate speech, Pope Francis criticized a theme of his papacy, criticizing new colonialism in the new world today with certain free trade deals and austerity measures that hurt the poor. He also apologized for past offenses committed by the Catholic Church in Latin-America. His remarks in Bolivia came Wednesday as he tours South America.

(BEGIN VIDEO CLIP)

POPE FRANCIS (through translation): Here I want to bring up an important issue. As some say, rightly so, when the pope speaks of colonialism, he overlooks certain actions of the church. I say this to you with regret, many and grave since were committed again the native peoples of America in the name of god.

(END VIDEO CLIP)

ALLEN: He got a standing ovation that moment.

In a few hours, Pope Francis will visit one of Bolivia's most notorious maximum security prisons where he will meet inmates, their children, and hear their stories. In Santa Cruz, Bolivia's largest city, it is not a building but a large complex. It houses about 36 percent of the country's prisoners and resembled a small city. The criminals, convicted of violent crimes and considered dangerous, live side by side as neighbors. Young children are permitted to live on the grounds with the parent. Authorities patrol the perimeter of the complex but inmates are essentially in control of what happens inside its walls. And the pope is headed there in a few hours.

Ahead, disturbing reports of dozens of executions carried out since Kim Jong-Un took over in North Korea. That's next.

(COMMERCIAL BREAK) [02:17:27] ALLEN: Welcome back to CNN NEWSROOM. Within the hour, China's markets will close for the day, and all signs point to a second rebound after weeks of eye-watering losses. More than half of the companies traded in China pulled their shares as they watch this all play out. Only time will tell if there are more good things to come or if the roller-coaster ride of the markets continues. Those that are feeling highs and lows of China's markets the most are business owners but now the government is taking action to rein those numbers back in.

CNN's Asian Pacific editor, Andrew Stevens, reports for us.

(BEGIN VIDEOTAPE)

(MUSIC)

ANDREW STEVENS, CNN ASIAN PACIFIC EDITOR: Stock markets are on the up. It feels a little bit like a carnival. Everyone's he a winner, especially the small retail investors, the punter. They make up a whopping 85 percent of all investors in China's stock markets.

(CHEERING)

STEVENS: But it could also be a little unreal. Buying stocks in China doesn't necessarily involve research understanding your company does. There is also a lot of rumor and speculation.

(CROSSTALK)

STEVENS: Plus there hasn't been much after close for investors. Property prices have been falling for some time. And bank deposit rates are miniscule. So you put all that together and you end up with a monster rally.

But it all ended on June 12th. Things suddenly got ugly, for many, down right scary, almost a house of horrors. Three weeks of wild volatility and growing fear slashed 30 percent of the value of stocks in China. That equals a paper loss of some $3 trillion. Now that really is scary.

But to talk about China's stock markets, you have to talk about the elephant in the room, and that is the Chinese government. They actively encouraged the bull run. But they've been even more involved when the markets started to tank trying to staunch those losses. In recent days, they've cut interest rates, ordered the brokerage houses and the state-run pension funds to buy the market, banned IPOs, and eased restrictions on people who have borrowed to buy stocks.

We don't yet know whether it is enough to draw a line out of the stock market crash. But one thing is certain, in this environment, you pay your opinion, you take your chances, so expect a few bumps along the way.

Andrew Stevens, CNN, Hong Kong.

(END VIDEOTAPE) (LAUGHTER)

[02:20:28] ALLEN: Oh, we love that bumper car with Andrew.

Thanks for that, Andrew. He is in Hong Kong.

And Hong Kong has been dealing with the remnants of a typhoon which has been moving away. There's a new threat now for Shanghai as another typhoon barrels through eastern China.

Like they don't have enough to worry about.

DEREK VAN DAM, AMS METEOROLOGIST: They are lining up one after another after another. Residents in Hong Kong are saying, what typhoon. That helicopter, you can see it flying and landing. That's a live shot of Victoria harbor. But that's not the case, just east of Hong Kong. Take a look at this. Wind and rain just battering residents there. This is what was from typhoon -- wow, I didn't notice that. That is tearing down some of the trees and toppling some of the power lines and certainly kicking up nasty surf on the coast. But that's a storm of the past. Now we are focusing our attention on the next major typhoon that's about to head to the east coast of China, specifically Shanghai. More on that in just one second.

Did you know we have six storms across the Pacific Ocean at the moment, four of which are named? Two we're still monitoring for development just south of Hawaii. This is the one we are focusing on Typhoon Chan-hom. This is between Okinawa and southern Japan. It is headed toward the east coast of China. Just to put the size of the storm in perspective, it is roughly 2 million square miles, equivalent to the U.S. State of Alaska, or Mexico. Either way you look at it, it is a very, very large storm. The area it will impact is heavily populated. This region is roughly 9 million people. Just north, Shanghai, 24 million people in the path of the storm. It will be a significantly weaker storm as it impacts the Shanghai region late Sunday into Monday. 100 mile-an-hour gust and rain fall of 200 millimeters, possibly causing localized flooding. Only two typhoons recorded over the last 70 years made landfall around Shanghai. This is a pretty rare occurrence. So to see something like that happen in our lifetime is quite a thing.

Here is the forecast for Shanghai. Double-check your flights this weekend. Conditions will deteriorate. Heavy rain and wind, especially Saturday into Sunday, and that will last right into Monday as well. Talking about the rain fall totals in excess of 200 millimeters. We know what happens in some of the densely populated areas. We see that localized urban flooding and that will pose a serious risk for people traveling and just living in that area.

ALLEN: Derek, thank you.

VAN DAM: Thanks.

ALLEN: Well, in North Korea, even being in the highest levels of the government does not guarantee your safety. Stunning new numbers from South Korea indicate the North Korea supreme leader, Kim Jong-Un, made horrific executions a primary way of ensuring his authority.

Here is CNN's Brian Todd from Washington.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): He's forceful, reckless and has a thirst for power that amounts to a rain of terror according to a top official. North Korea's young dictator, Kim, unexecuted 70 officials since late 2011 says the South Korean foreign minister. By most accounts, that's shockingly more than by his father, Kim Jong-Il.

JONATHAN POLLACK, BROOKINGS INSTITUTION: Unlike his father, he is ruthless, things that he is prepared to do or that his father wasn't prepared to do or didn't feel the need to do. He does.

TODD: Kim even executed his uncle and reportedly his own defense minister.

Human rights monitor, Greg Scarlatoiu, says the regime often uses grotesque methods.

GREG SCARLATOIU, HUMAN RIGHTS MONITOR: They are executed by using .50 caliber anti-aircraft machine gun battery. The bodies are pulverized. There is nothing left behind.

TODD: U.S. officials tell CNN executions are Kim's way of solidifying his position. One official calls them a crude mechanism for internal control. Analysts say the deaths may show that Kim feels vulnerable but he is also sending a bone-chilling signal to those in his closest circles.

POLLACK: Don't mess with me. I'm the boss. And if you know what's good for you, you'll stay absolutely loyal to me.

[02:25:10]TODD: There are even published reports that architect of Pyongyang's new airport was executed because Kim didn't like the design.

HYEUNSO (ph) LEE, NORTH KOREAN DEFECTOR: I sold my first public execution when I was 7.

TODD: Defector Hyeunso (ph) Lee, who left while Kim's father was in power, says people have been executed over their homosexuality or religion. CNN cannot confirm that. She said people are hanged or killed by machine gunfire, many times in front of crowds.

LEE: Many people watch public execution because it is mandatory if North Korea. And the very first line of the crowd that should be the victims, criminals' immediate family members, including relatives, have to sit on the front line.

TODD (on camera): And Lee says relatives witnessing a loved one's execution are considered betrayers if they cry at the event, so very often they sit there stone-faced.

One analyst says we need to watch how long the pattern of execution continues under Kim Jong-Un. If they go on much longer, those closest to him may get nervous and go against him.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

ALLEN: Horrific story from North Korea.

Well, Manny Pacquiao is causing quite a stir in Indonesia. The Filipino boxer and congressman paid a visit to death row inmate, Mary Jane Violoso (ph). The 30-year-old woman is facing execution for drug smuggling. Pacquiao says he thinks she is a victim of human trafficking. He is asking the government to spare her life.

U.S. authorities say they have foiled a number of planned terror attacks over the past month, including some that would have targeted Fourth of July celebrations. We'll have details, right after this.

(COMMERCIAL BREAK)

[02:30:21] NATALIE ALLEN, CNN ANCHOR: Welcome back to our viewers here in the United States and around the world. We appreciate you joining us. I'm Natalie Allen.

Let's update you on our top stories here at CNN this hour.

South Carolina governor, Nikki Haley, signed a bill to take down the Confederate flag from the state ground. It will be taken down at 10:00 a.m. local time today. Just a few hours. The flag gained national attention after a white gunman killed nine African-Americans were seen in photos he with the flag.

Greece is hoping to secure another European bailout with the reform plan of tax hikes and privatization. The government wants to raise taxes on hotels and shipping companies. Parliament will debate the plan today before going to European creditors.

San Francisco firefighters rescued two teenagers who got stuck on a crumbling cliff while trying it retrieve a cell phone. Reports say the siblings were hiking Thursday near the Lands End section of the city when they became stranded. They were hanging on to the edge when the brave crews arrived to rescue them.

Newly appointed leader of al Qaeda in the Arabian Peninsula is calling for attacks on the U.S. Video released by the terror group also features a eulogy for his predecessor who was killed in a drone strike in Yemen.

Americans didn't know it at the time but there were several close calls leading up to the July 4th holiday, potential terror attacks inspired by ISIS.

Chief U.S. security correspondent, Jim Sciutto, has that for us.

(BEGIN VIDEOTAPE)

JIM SCIUTTO, CHIEF NATIONAL SECURITY CORRESPONDENT (voice-over): U.S. law enforcement thwarted several terror plots in the last four weeks, including plots timed to the July 4th weekend, U.S. officials tell CNN.

Director James Comey says the FBI made more than 10 ISIS-related arrests in the last month, some tied to the holiday.

JAMES COMEY, FBI DIRECTOR: They stopped the stuff that was trying to come at us for July 4th. But now it is July 7th and 8th and they are on to the next thing.

SCIUTTO: Foiled attacks included targets coast to coast and were unsophisticated with plans including guns, knives and other weapons fitting ISIS's public calls to supporters to attack in any way possible.

(SHOUTING)

SCIUTTO: Investigators believe that ISIS members overseas enabled plots, encouraging Americans to carry out attacks on U.S. soil, even selecting possible targets. Comey calls it crowd sourcing terrorists.

Senator James Rich telling CNN Wednesday that time was critical.

SEN. JAMES RICH, (R), IDAHO: Somewhere quite imminent, actually.

UNIDENTIFIED CNN ANCHOR: Within days?

RICH: Within days. There was one, of course, even one within hours or minutes.

SCIUTTO: The foiled plots come as the FBI continues to warn that terror suspects have began dark in cyber space, increasingly communicating through encrypted messaging that is widely available but impossible for the intelligence community to monitor.

July 4th weekend may have passed but U.S. officials tells CNN that risk of terror attacks remains very high.

SETH JONES, RAND CORPORATION: Based on very recent past trends, ISIS has been willing to enable to push out information to Americans and a small number have at least been willing to try it act based on that.

(END VIDEOTAPE)

ALLEN: Our Jim Sciutto reporting there from Washington for us.

A new terrorist attack in Tunisia is highly likely. That's coming from the British government that is advising against all travel there. The new warning comes nearly two weeks after the terror attack that killed 38 people.

Senior international correspondent, Nick Paton Walsh, has more from London.

(BEGIN VIDEOTAPE) NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: That is a very stark warning from the United Kingdom's foreign office to Britain's thinking about going on holiday it Tunisia and those currently there. It says don't go, if you are planning it, and leave if you're currently there.

Tour operators are urgently putting them out and their staff as well and bookings that aren't expected to be resumed until November. This, the foreign office says, is because of intelligence they received and their general feeling about the ability of Tunisia to protect those there on holiday.

Here is what Philip Hammond, the British foreign secretary, had to say.

PHILIP HAMMOND, BRITISH FOREIGN SECRETARY: We have today decided to change our travel advisory for Tunisia to advise against all but essential travel for the time being. While we do not have any information suggesting a specific or imminent threat, since the attack, the intelligence and threat pictures developed considerably, leading us to the view that a further terrorist attack is highly likely.

[02:35:04] SCIUTTO: Now a key part of that warning is how they do not believe, in their words, measures put in place to mitigate the threat are adequate. We have seen ourselves with the endless stretches of beaches and where 38 people were killed by one lone gunman as they lay on the sand outside their hotel, it is almost impossible to secure all of it and retain that sense of fun. People expect on the holiday or vacation. So we saw how armed police were put in on the 1st of July but it takes about 10 minutes to run between those different posts where they are in fact kept. Very difficult task for the Tunisians. And it is clear that the British government feel they received intelligence or information that they believe makes an attack highly likely.

We know that the one lone gunman was trained inside Libya in a town very close to the Tunisia border at the same time as the museum gunman who killed over 20 people in March in the Tunisia capital. Maybe there are other people part of the cell. We know the Tunisia authorities are very anxious because 33 radicals, their whereabouts are not known inside Tunisia. A lot of fear here.

I think the key thing to remember, a massive impact this will have on the Tunisian economy. Hundreds of thousands dependent on tourism for their life blood. We see British tourists insistent on staying and continuing on their holiday because they didn't want the country to suffer that woe. But are other European countries, other main nations, holiday makers, will they follow suit? That would be devastating to the very people who tried it make -- in fact save so many of the holiday makers during the attack on the you Tunisians themselves.

Nick Paton Walsh, CNN, London.

(END VIDEOTAPE) ALLEN: The U.S. Army plans to drop 40,000 troops by the end of 2017 due to budget talks but the announcement comes amid new threats facing the U.S. Over the July 4th holiday weekend, the U.S. military intercepted two Russian aircraft, though they never entered U.S. airspace.

CNN's Pentagon correspondent, Barbara Starr, reports on that.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Dire warnings from the Marine Corps general slated to become President Obama's top military adviser.

GEN. JOSEPH DUNNFORD, U.S. MARINE CORPS: Russia presents the greatest threat to our national security. And if you look at their behavior, it is nothing short of alarming.

STARR: Marine Corps General Joseph Dunnford believes the U.S. should provide weapons to Ukrainian forces.

DUNNFORD: Frankly, without that support, they won't be able to protect themselves against Russia progression.

STARR: He listed China, North Korea and ISIS as the next biggest threat it U.S. security and he had this warning about Iran.

DUNNFORD: Iran will continue to be an influence across the region. If confirmed as chairman, I'll make sure that our leadership has a full range of military options to deal with Iranian activity.

STARR: His confirmation hearing to be the next Joint Chiefs chairman came on the very day the Army announced it is cutting its force by 40,000 troops, going from 490,000 to 450,000 troops in the next two years. Military bases and communities across the country affected. Fort Benning, Georgia and Ft. Hood, Texas, suffering the biggest impact.

BRIG. GEN. RANDY GEORGE, U.S. ARMY: Unfortunately, under sequestration and automatic budget cuts, today's announcement may not be the last. .

STARR: But muted reaction from many in Congress. The cuts largely a result of Congressional-mandated budget cuts known as sequestration.

Some analysts say with no large land wars for the Army on its horizon, it is time to cut and save money, though local communities could pay a price.

UNIDENTIFIED MALE: It is hard to justify, you know, the force size we had at the peak of Iraq and Afghanistan, given deployment and commitments that we have today. That also means there will be fewer people working at grocery stores, fewer teachers at the school. So the economic impacts will expand out from the base.

STARR: Even as the outgoing chairman warned, the U.S. is entering the time of what he calls perpetual war.

GEN. MARTIN DEMPSEY, CHAIRMAN, U.S. JOINT CHIEFS OF STAFF: The global security environment is as uncertain as I've ever seen it. The world is rapidly changing everywhere and we're seeing significant shifts in an already complex strategic landscape.

(END VIDEOTAPE)

ALLEN: Barbara Starr reporting for us from the Pentagon.

Negotiators only have hours to hammer out a nuclear deal with Iran. U.S. Secretary of State John Kerry said on Thursday that progress is being made but that the West is willing to walk away from talks.

(BEGIN VIDEO CLIP)

JOHN KERRY, SECRETARY OF STATE: This is not open-ended. President Obama made it very clear to me last night, you can't wait forever for the decision to be made. We know that. So if the tough decisions don't get made, we are absolutely prepared to call an end to this process.

(END VIDEO CLIP)

[02:40:12] ALLEN: Earlier this week, a top Democratic quoted President Obama saying chances of a deal are now less than 50/50.

Smugglers fill tiny boats with human cargo on their way to the Italian coast. Coming up, CNN speaks with a group of boys who say they were forced to captain these ships.

(COMMERCIAL BREAK)

ALLEN: And we turn our focus to the European migrant crisis. After months of investigation, CNN retraced the route traveled by thousands of Egyptian children. From villages along Egypt's coast, they sail across the sea to Italy on small boats crammed with people, as we've shown you. Now smugglers are forcing trafficked children to captain these ships, carrying human cargo.

Here's CNN's Nima Elbagir.

(BEGIN VIDEOTAPE)

(SHOUTING)

NIMA ELBAGIR, CNN CORRESPONDENT (voice-over): Rocked by the waves, huddled together below deck. This hidden camera was shot by migrants crossing from Egypt to Italy, a trip so many don't survive.

(on camera): This is Sicily's boat graveyard. This is where the hulls of ships that brought migrant to shore here are laid to rest. Each one of these ships carries with it a tale of human misery. The hold where hundreds were found asphyxiated. The ship found empty because people out of fear plunged to their death. These are the wrecks of the vessels that carry people and their dreams here to shore in Europe.

[02:45:05] (voice-over): Over the past years, they brought with them thousands of unaccompanied Egyptian children. The lucky ones are brought here to one of the many under-aged migrant homes dotted across the Sicilian countryside. We've been granted access by Italian authorities but asked not to disclose the name of the town the center is based in.

This young man agreed to speak us to but he doesn't want to appear on camera for fear of what might happen it his parents still at home.

He was a so-called child captain, one of the children trafficked on board it crew smuggler ships when he was just 15 years old. He said he had no choice.

He now works with newly arrived Egyptian boys trying to convince them to stay in school and out of the hand of the criminal gangs.

UNIDENTIFIED MIGRANT BOY (through translation): Europe is very, very tough for someone as young as these kids are. They run away from school it any big city. They can find anything to eat. They don't know where to sleep. They want to work at anything. Anyone who says, come work for me. Whether it is drugs or cocaine, they will work for it because they have no money.

ELBAGIR: Even sex trafficking of children, I asked?

UNIDENTIFIED MIGRANT BOY (through translation): Yes. There is also child prostitution because they don't have anyone looking out for them.

ELBAGIR: Even here there is no real respite. A group of the boys from the home agreed to speak to us in the church square. One of them is just 12 years old. It is clear they carry the burden of the thousands of dollars their parents paid to get them here.

I asked them if they call home and if they tell their parents how tough life in Italy really is.

"We can't tell them," one of them says. "We chose this. We chose to come to suffer so that we can help them."

(on camera): For many of the kids, Sicily is an initial stopping off point. Thousands of people have been disappearing out of the system and making their way by bus and rail to Rome. And that's where, desperate to pay off the debts their parents incurred to get them here, they head to find work, wherever they can.

(voice-over): Nima Elbagir, CNN, Italy.

(END VIDEOTAPE)

ALLEN: CNN has been taking you to the front lines of Europe's migrant crisis. Activist warn that this year, 2015, is on track to be the deadliest on report in terms of people trying it reach Europe by boat. But now comes a story of thousands of children leaving their homes and false hope as we just heard that they are chasing. CNN's travels their path from poor Egyptian villages to the streets of Rome where many fall into drug and prostitution rings. The freedom project is focusing on child castaways of the Mediterranean crisis.

Still to come, Presidential Candidate Donald Trump says he has a plan for jobs and it could mean fewer jobs in other countries.

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DONALD TRUMP, (R), PRESIDENTIAL CANDIDATE & CEO, TRUMP GROUP: I'm going to take jobs from China. I'm going to take jobs, excuse me, from Mexico, from Japan, where they are sending in millions of automobiles all the time, and we get nothing out of it.

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[02:52:17] ALLEN: New video here of a spewing volcano that is causing transportation headaches in Indonesia. Quite stunning to look at though. But it has stranded thousands of travelers. Authorities closed four airports, including the one in the popular resort island of Bali after the volcano in East Java Province began to erupt. Scores of flights have been cancelled due to that.

U.S. Republican presidential candidate, Donald Trump, is confident he will win the Latino vote despite his controversial remarks about immigrants.

In more of his interview with CNN's Anderson Cooper, Trump tells us why he thinks Latino voters will support him.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, CNN ANCHOR, A.C. 360: You did make a lot of people, the people you are running against, the GOP, very nervous. They feel you have to get Hispanics on the side of GOP. Mitt Romney got 20 percent of the vote.

TRUMP: He didn't appeal to them. I understand why. He didn't appeal it a lot of people. He didn't appeal to conservatives. If Republicans would have left their living room and got out and voted, he would have won the election. People for some reason didn't dig Mitt Romney. As far as --

(CROSSTALK)

COOPER: Can you get the Latino vote?

TRUMP: I tell you what, if the Republicans voted Mitt Romney -- he didn't energize anybody. I do energize. I think you say that. I do energize.

COOPER: Huge crowds.

TRUMP: I will get more Latinos than anybody else. I have thousands of Latinos that work for me right now. And I will tell you why I will get it.

COOPER: OK.

TRUMP: Because later on, probably after the primary situation, I hope I win. I'm in it to win it. We will see what happens. I will have thousands of people working for me standing up saying we love Trump. What I will do for Latinos? I will create jobs. Take jobs from China. Take jobs, excuse me, from Mexico, from Japan, where they are sending in millions of automobiles all the time and we get nothing out of it. I'm going to take jobs back and bring them back to the country. And the Latinos will be able to work and make good money. They will vote for me. And I'll tell you, keep them away from Hillary Clinton.

COOPER: You talked have openly in your speeches about your deal with Macy's, line of tech ties, manufactured in China.

TRUMP: Openly.

COOPER: You talked about it openly.

TRUMP: I hate the fact -- honestly, I hate --

(CROSSTALK)

COOPER: Why not just make a stand and say, I'm not making this deal, I want it made in Americas. Brooks Brothers does --

(CROSSTALK)

TRUMP: Here's the story. Macy's is weak. They want to be politically correct. Thousands of people are cutting up their Macy's credit cart right new and I love that. I hate to see weak people when they are wrong. I think they are paying a very big price. I talk openly if speeches about ties. Ties made for me because China has so devalued their currency that it is impossible for American companies, even with something so simple as a tie, it is impossible for American companies, Anderson, to compete with China.

(END VIDEOTAPE)

ALLEN: Trump may be number two in recent polls but, according to analysis from data collection platform, Pivot, the presidential candidate has only a 1 percent chance of winning the Republican nomination. But he sure talks the talk.

We are getting a look at the first official family portraits from Princess Charlotte's christening. It's the perfect pictures, as you would imagine. Kensington Palace released these photos. Diana, Princess of Wales', favorite photographer, took the pictures Sunday after the baptism. Both sets of grandparents were there along with, of course, her baby brother, the other adorable one, George.

You've been watching CNN NEWSROOM. We thank you for tuning us in with us. I'm Natalie Allen.

George Howell is back with me for the next hour in just a minute.

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