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China, U.S. Dig Out From Snow; Now Celebrations In Egypt Five Years After Tahrir; Interview with Stan Grant; Interview with Elon Musk. Aired 8a-9a ET

Aired January 25, 2016 - 08:00   ET

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

[08:00:18] KRISTIE LU STOUT: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream. North America and East Asia are hit by massive

snowstorms as freezing temperatures claimed 85 lives in Taiwan.

His speech is being called Australia's Martin Luther King moment. We'll speak to the veteran reporter who slammed his country's treatment of

indigenous people.

And Eli Musk hopes to build Tesla cars in China in three years. I speak exclusively to the tech visionary.

Extreme winter weather is causing travel nightmares in both Asia and the eastern United States. A blizzard has moved away from the U.S. east coast,

but officials say road conditions remain hazardous in some areas.

Now, major airports are slowly reopening, but more than 1,200 flights have already been canceled Monday morning, most of them as a result of the snow.

Now, temperatures have plunged across East Asia as well. Japan is getting unusually large amounts of snow. It even fell in areas that rarely see it.

Now, in South Korea heavy snow is disrupting travel. And authorities say more than 90,000 people were stranded on the island of Jeju over the

weekend.

And here in Hong Kong, temperatures have dropped to lows not seen in 30 years. Many people gathered at the city's highest peak to a rare sight in

this subtropical city, frost that had formed there.

And in Taiwan, the icy weather has turned deadly. At least 85 people have died from hypothermia and other weather-related conditions. And large

parts of China are getting the coldest weather in decades.

Now, let's bring you there now. CNN's Matt Rivers is standing by in Beijing. And Matt, record low temperatures across the region. Even taking

lives in Taiwan. What's happening?

MATT RIVERS, CNN CORRESPONDENT: Kritstie, I think what you are seeing is a region of the world that is just simply not used to these kind of record

low temperatures.

Take Taiwan, for example, 85 people, that is really an astounding number, all of whom according to state media died as a result of either hypothermia

or cardiac issues that state media reported as likely caused by that cold weather.

And look no further than the fact that many parts of southern China and Taiwan do not have central heating infrastructure for people's houses. And

so in Taiwan it appears many people were just unprepared for this kind of weather, Kristie.

LU STOUT: Matt, there in Mainland China, we are nearing one of the biggest travel seasons of the year. So, will this cold snap affect the so-

called great migration in China?

RIVERS: I think it already has. Really that period of travel surrounding the Chinese lunar new year kind of unofficially kicked off over the past

weekend. And given the conditions that we saw in China, mainly in the eastern and southern provinces of the country -- you saw blizzard-like

conditions.

And given that this enormous travel season really just started kicking off. You saw a lot of delays, railroad tracks were closed down, highways were

shut down, airports faced a ton of delays and cancellations, and that travel season is only going to continue to gear up.

While the weather is expected to be cold here in China over the next several days, we are not expected to see the kind of snow that we saw over

the weekend. So, perhaps travel officials can begin to get a handle on things and hopefully make the travel season here during the month of

February go a little bit smoother.

LU STOUT: And Matt, how is the extreme cold affected air travel there? I understand quite a number of passengers were stranded in Quinming (ph) at

the weekend.

RIVERS: That's right, there was. There was about 11,000 passengers, according to airport officials that we spoke to this morning here in China

that were stranded since Saturday.

Most of those people, according to the officials that we spoke to, were stranded not because of what was going on in Quinming (ph), but because of

what was going on at their respective airports that they were trying to travel to. So, similar to what you saw on that South Korean island where

90,000 or so people were stranded because of flight delays. To a lesser extent, that's exactly what you saw in Quinming (ph). And it is something

that officials hope will not be repeated over the coming weeks as more and more people set to -- are set to travel home.

LU STOUT: All right. CNN's Matt Rivers reporting live from Beijing. Thank you and take care.

Now, for a look at what's in store in the coming days, here is the forecast from our meteorologist Pedram Javaheri.

(WEATHER REPORT)

[08:06:47] LU STOUT: Pedram Javaheri there.

Now right now, the Monday morning commute to work is anything but mundane for millions of Americans in the blizzard zone. Now, Jason Carroll shows

us the trouble from record snowfall is far from over.

(BEGIN VIDEOTAPE)

MAYOR STEPHANIE RAWLINGS-BLAKE, BALTIMORE: This is a complicated snow removal effort.

JASON CARROLL, CNN CORRESPONDENT (voice-over): This morning the historic and deadly winter storm is still paralyzing parts of the northeast.

Millions continue trying to dig and plow out of the winter's record- breaking aftermath. You can see snow enveloping more than 13 states in white.

UNIDENTIFIED MALE: There you go. There you go.

CARROLL: Officials now warning the melting slush may refreeze overnight, causing dangerous icy conditions.

UNIDENTIFIED MALE: You might be cruising along at 50 miles an hour, and then you're going to hit snow. And we're going to have some accidents.

CARROLL: Crews in several states are still working around the clock to get metro, train, and bus services back up and running. In New York, the Long

Island Railroad sustained significant damage during the storm, forcing officials to only open 80 percent of the busiest commuter railroad in North

America.

UNIDENTIFIED MALE: It will be a slow start.

CARROLL: The snowstorm dropping over 26 inches in Central Park, the second largest snowfall in New York City history. Glengary, West Virginia, two

hours west of Washington, D.C., was the hardest hit, with over 42 inches covering their small town. The feet of heavy snow collapsing roofs in

Maryland, Pennsylvania, and Virginia.

BILL DE BLASIO, MAYOR OF NEW YORK CITY: I believe at the end of the day this will probably be our most expensive snow event ever.

CARROLL: This as reports rise to at least 30 deaths by the crippling winter storm.

UNIDENTIFIED FEMALE: I tried to help.

CARROLL: In New Jersey, a mother and her 1-year-old son died, waiting inside this car to stay warm. But snow was covering the tail pipe, and

carbon monoxide quickly suffocated the family.

UNIDENTIFIED MALE: You know, when the muffler is covered, you can't be sitting in the car that long. It's really sad.

CARROLL: Jason Carroll, CNN, New York.

(END VIDEOTAPE)

LU STOUT: Now, let's bring in CNN's Nick Valencia live from Washington. And Nick, many people there this morning looking at a very icy commute.

NICK VALENCIA, CNN CORRESPONDENT: Yeah, if they're even trying to test their limits on these roadways to begin with.

Good morning, Kristie. We're live here in the nation's capital where this is not a typical sight here for the district. Hundreds of pieces of heavy

machinery, things like these tractors, frontloaders, being brought in to remove the tons and tons of snow that have really just pounded this area

over the course of the last three days. More than 22 inches of snow, 34 hours of straight snowfall, much of this snow is being taken to the RFK

stadium, that's the old Washington Redskins stadium, the professional football team here in the nation's capital.

Things slowly getting back to normal. However, schools remain closed, businesses remain closed. The federal government is not expected to show

up, nor is the local government expected to show up to work today.

Government state officials very concerned that these roadways, as much as they may look passable with all this hard work of these emergency crews

here working around the clock -- as much as they make look manageable, the concern of course is that the rain will freeze over, the snow will freeze

over as the snow melts, I should say, and that could create even more treacherous conditions for those trying to test the limits of those

roadways and interstates -- Kristie.

[08:10:13] LU STOUT: Got it. Given that epic snowfall, it is a battle to get to work this morning and to clear the way for all the commuters. Nick

Valencia reporting live from Washington, D.C. Thank you, Nick.

You're watching News Stream. And after the break, a searing indictment of endemic racism

targeting Australia's indigenous population. We speak to the veteran reporter who delivered the speech that's gone viral.

Plus, the backlash against migrants grows more intense after the New Year's Eve assault in Cologne. Later we hear from refugees who are trying to

restore trust with their German hosts.

(COMMERCIAL BREAK)

LU STOUT: Now some in Australia are calling a speech a Martin Luther King moment. It was a scathing assessment of racism against the country's

indigenous population. The comments by veteran indigenous journalist Stan Grant have been released just ahead of

Australia's national day. And they have gone viral, watched more than a million times.

Now, critics claim it is offensive and racist and denounces all Australians. But Grant says his ancestors were victims of a war of

extermination.

(BEGIN VIDEO CLIP)

STAN GRANT, JOURNALIST: The Australian dream. We sing of it and we recite it in verse. Australians all let us rejoice for we are young and free. My

people die young in this country. We die 10 years younger than average Australians. And we are far from free. We are fewer than 3 percent of the

Australian population and yet we are 25 percent, a quarter of those Australians locked up in our

prisons. And if you are a juvenile, it is worse, it is 50 percent. An indigenous child is more likely to be locked up in prison than they are to

finish high school.

(END VIDEO CLIP)

LU STOUT: Now, January 26 marks 228 years since the British colonization. It has also

been referred to as invasion day, the start of centuries of abuse.

Aboriginal heritage, it dates back as much as 45,000 years. But the British arrival saw much of

the indigenous population wiped out. Many died from disease like small pox, others were massacred. And then there's what's known as the stolen

generation. Between the 1900s and 1960s, thousands of indigenous children were taken from their parents to be brought up by white foster families or

in institutions.

In 2008, they received a formal government apology.

Now, it is just past midnight on Australia Day in Sydney where Stan Grant joins us via Skype. And Stan, thank you for joining us.

Your speech was a very stirring one. It was delivered back in October. And it's found this huge new audience online. So, why do you think it is

generating such an incredible response?

GRANT: It is extraordinary really, Kristie, I hadn't anticipated this at all. The speech had actually been delivered during a debate asking the

question, is racism destroying the Australian dream? That debate was held about three months ago.

But, as you say, the speech was posted online. It was the eve of Australia Day. And I think it's a time where we reflect on who we are as a nation,

we reflect on our identity. We look at the things that Australia has created, the extraordinary country that Australia undoubtedly is. But we

also examine that stain on the soul of the nation, and that is the unresolved issues that still lie at the heart of the

Australian settlement. The fact that land was taken, the fact hat people were dispossessed and suffered injustice and continue to suffer today.

Dying 10 years younger than the rest of the population. 3 percent of the Australian population, yet 25 percent of the prison population, for

juveniles it is double that it is 50 percent.

This is the indictment of Australia that we still need to grapple with. And thankfully, people are coming to that. They're asking themselves these

hard questions.

And people are being forced to respond. We spoke to Leslie Williams, the New South Wales minister for aboriginal affairs. And Williams said this

about your speech, quote, "Stan Grant's speech highlights the importance of recognition and reconciliation to both the aboriginal and broader

Australian communities. Healing is a complex and sensitive issue that requires thoughtful and considered discussion. Stan Grant's speech has

brought this much needed conversation into the mainstream."

So Stan, is the Australian government and society there willing to have an honest and constructive conversation about racism, about aboriginal rights?

GRANT: We are already in the midst of a deep discussion potentially moving toward a referendum, which would alter our constitution to recognize

indigenous people and to acknowledge the role of indigenous people in Australia. And that has never been done before. It is an important

conversation, it's anotherstep along the road.

Bearing in mind, Kristie, that not even 50 years ago, indigenous people were still not counted fully as citizens in this country, bearing in mind

that by any measure according to all the socioeconomic indicators, indigenous people sit at the very bottom of the ladder in Australian

society.

These are hard questions.

The evidence of a growth and maturity in the Australian nation. But these are very, very hard won. A lot of money is spent on indigenous affairs.

There is a measure of goodwill. But the issues, the disproportionate disadvantage appear to be so intractable.

LU STOUT: And that disadvantage has come to the forefront in what happened quite recently.

This 11-year-old aboriginal boy injured in an incident at a youth detection center in Brisbane. The boy has two black eyes, a broken cheek bone.

Again, an 11-year-old boy. There is so much wrong here.

Why is this allowed to happen today?

GRANT: You know, Kristie, about 20 years ago there was a royal commission, that is the highest investigation you can have in this country into the

issue of aboriginal deaths in custody. And one of the major recommendations in that royal commission was that we must reduce the levels

of incarceration. And sadly, rather than be reduced they have increased by100 percent. In Queensland, which is the state where this incident that

you have mentioned with the 11-year-old boy, has allegedly taken place. In Queensland, indigenous youths make up 65 percent of those

in juvenile detention.

Amnesty International has said that this is an international disgrace. Just one of the litany of issues that still need to be resolved in

Australia, be it education, health, housing, employment and of course the issues of incarceration.

LU STOUT: Yeah,m so many unresolved issues. And yet, do you have hope? Do you have hope in the next generation, that there is a more educated, a

more compassionate generation of Australians who will not just talk about but actually act on bridging the divide in Australia?

GRANT: I most certainly do. If I look at my own life and the the trajectory of my own life, it is markedly different than of my parents and

my grandparents. They have struggled against injustice, and they have struggled to gain a foothold in Australia.

There is improvement haltingly and slowly but improvement across those range of socioeconomic indicators. But there is just so much still to do.

There are hard questions to be asked here about sovereignty and treaty. Australia is still the only commonwealth country, present or former, that

has not made a treaty with its indigenous people. Acknowledgement of sovereignty. More input from indigenous people into policies that are

directed towards them.

There is a great measure of goodwill in Australia. I have seen that with the outpouring of support and the reaction to the speech that I gave. We

have seen that in the apology to the stolen generations of the former Prime Minister Kevin Rudd delivered. We have seen it in marches and

we have seen it in decisions in our courts and changes at the government level and goernment policy, but there is just still so much to be done. We

are only beginning in many ways, this journey.

[08:20:17] LU STOUT: Well, Stan, thank you for making that speech. And thank you for sharing that story with us. Stan Grant there joining us from

Sydney.

GRANT: It's a pleasure.

LU STOUT: Thank you and stay well.

You're watching News Stream. And after the break, we're going to hear from refugees in Germany who are trying to right the image of migrants following

those brutal New Year's Eve attacks in Cologne. They say migrants have fallen under suspicion and scrutiny.

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream.

In Germany, more than half the suspects connected to a series of New Year's Eve robberies and sexual assaults in Cologne have been identified as asylum

seekers. Now the attack spurred a vigorous debate about migrants seeking refuge.

Our Atika Shubert speaks to some refugees who are eager to prove to their German hosts that most asylum seekers obey the law.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN INTERANTIONAL CORRESPONDENT: Police described what happened at the Cologne train station on New Year's Eve as a new dimension

of crime by a mob of North African men.

Germany's federal police used an Arabic term.

He says, "this is a new phenomenon for Germany and we are very concerned. We know of this phenomenon tarush jamiyah (ph) from Egypt, mass sexual

assault happening in large crowds," he says. "It is not a game. Anybody who commits assaults like this must be arrested and brought to police

regardless, anyone, whether German nationals or refugees."

This is exactly what Mustafa Karita (ph), a 48-year-old Syrian refugee had feared would happen.

"Some people were waiting for something like this to happen," he tells us, "something that puts refugees in a bad light. But we will do our best to

prove to others that most refugees are not bad."

Mustafa (ph) and his family were among the 1 million asylum seekers who came to Germany in

the last year. Initially Germany publicly welcomed refugees. But national polls now show Germans increasingly dissatisfied with Chancellor Merkel's

policies. 70 percent now believe more crime is coming.

Nabila Hamdi (ph), himself a Kurdish refugee who has lived in Germany for the last 14 years, introduced us to Mustafa (ph) and his family to

understand how the New Year's Eve assaults and the backlash will impact refugees.

Mustafa's (ph) son-in-law believes the assaults were less about culture, more about the disrespect of law and order brought with them.

"There is no law in places like Syria," he says. "Some who came to Germany grew up like this and do not want to know anything in this new place. But

refugees must realize that there are laws in Germany and they have to abide by those laws. Everybody has rights here but also responsibilities," he

says.

The assaults have galvanized anti-immigration groups. Attacks on refugees and migrants have also increased. But Mustafa's son Yousuf (ph) is not

afraid.

"No, I'm not afraid. Definitely not," he says. "Because the people I met with in the last four months I have seen in Germany were good people, full

of respect."

Small groups of refugees have come to leave messages and lay flowers at the Cologne train

station. But even Hamdi (ph), the refugee coordinator, admits it will take time.

"I am a very positive person," he says, "and I think we have reduced people's prejudices

against refugees. But I can understand people who feel, well, if you invite someone to your home, offer to take care of them, and then this

person betrays you, well, it is natural to be sad and very disappointed."

Time to rebuild trust between residents and refugees who are here to stay.

Atika Shubert, CNN, Cologne.

(END VIDEOTAPE)

[08:27:52] LU STOUT: You're watching News Stream. And coming up, I have an exclusive

interview with the billionaire CEO known for his constant innovation. hear what Elon Musk has to say next.

And with one week to go until the all important Iowa caucuses in the United States, we take a look at how Democratic rivals for the White House are

appealing to the party's base.

(COMMERCIAL BREAK)

(HEADLINES)

[08:31:55] LU STOUT: Now he builds electric cars, launches rockets and has been compared to a real life Iron Man. Elon Musk is more than your average

tech CEO. He's also seen as a visionary, speaking talking Mars colonization and solar powered rapid transit systems.

I had the chance to sit down with him for this exclusive interview.

(BEGIN VIDEOTAPE)

LU STOUT: China is the world's largest auto market. China is also the world's biggest carbon emitter. Do you think China realizes and

understands how much it needs your technology?

ELON MUSK, CEO, TESLA: Well, I think (inaudible) by the Chinese government that electric vehicles are very important to the future. In order to have

clean air in cities, you have to go electric.

And so the policies and initiatives of the national government are increasingly favoring that outcome. But the challenge for Tesla I think

is to figure out local production, because right now our cars in China, they come in with quite a high import duty. And we're not eligible for

local incentives. So, all of our sales in China are effectively at quite a high penalty.

But that will be alleviated once we move to local production.

LU STOUT: Yeah, you have the upcoming more affordable Model 3 coming out. Is that going to be made in China?

MUSK: It will be made eventually in China. The -- I think sometimes it is not obvious for Tesla is that we're actually a very tiny company. Our

total production last year was only 50,000 cars, compared to global production or 90 million for all carmakers. So, there is only so much we

can do at one time. And if it we could -- if it was possible for us to do local

production in China sooner, we would. But I think it is probably going to be close to three years before we can achieve that outcome.

LU STOUT: Now, the Model 3 will be a real test for Tesla. That is when you are going to see if the EV, the electric car, can go truly mainstream.

Are you confident?

MUSK: Actually, I do feel pretty optimistic about the Model 3. The key thing with the Model 3 is higher volume and a lower price.

It is a smaller car and without quite as many bells and whistles as Model S or X. But the goal is to have a very compelling, affordable mass market

electric vehicle. And I feel pretty good about that goal.

LU STOUT: Are you worried at all about GM beating you to the market with its upcoming Bolt due out next year?

MUSK: You know, I think if GM comes to the market with a compelling electric car, that's great. The goal of Tesla from the beginning has been

to accelerate the advent of sustainable transport. So, you know, I think if GM or any other company comes out with compelling electric cars, that's

good for the world and we would applaud them.

(END VIDEOTAPE)

LU STOUT: And that was just the first part of my exclusive interview with Elon Musk. The discussion also covered two of his other ventures, Solar

City and SpaceX as well as the effect of falling oil prices on his electric car business. And you can catch the next part of my interview right here

on News Stream on Wednesday.

Now, the first voting contest in the U.S. race for the White House is just one week away. And Democrats vying for the presidency are using these

final days to make their case to voters in Iowa.

Now, Bernie Sanders fought back against the idea that he lacks experience for the job. And Hillary Clinton said some voters are still making up

their minds.

(BEGIN VIDEO CLIP)

BERNIE SANDERS, 2016 DEMOCRATIC PRESIDENTIAL CANDIDATE: It really reminds me very much what happened here in Iowa eight years ago. Remember? Eight

years ago Obama was being attacked by -- he was unrealistic, his ideas were pie in the sky. He

did not have the experience that was needed.

But you know what, people of Iowa saw through those attacks then and they're going to see

through those attacks again.

HILLARY CLINTON, 2016 DEMOCRATIC PRESIDENTIAL CANDIDATE: I know some of you are still shopping. I like to shop too. I hope during the course of

this afternoon we can convince some of you to talk to my volunteers and organizers on the way out and sign up, sign a commit to caucus card, sign

to do some of the shifts of work that we need to really gear up for the caucus next Monday.

(END VIDEO CLIP)

LU STOUT: Democratic candidates Martin O'Malley, Hillary Clinton and Bernie Sanders will soon face Iowa voters during a special CNN town hall.

And you can watch it live Tuesday morning at 10:00 in Hong Kong. Thats' 11:00 in Tokyo. Or you can watch the replay replay starting at noon in

London. That's 1:00 p.m. Central European Time only on CNN.

Now, shattered hopes right now in Egypt. A stark contrast to the jubilence five years ago in Cairo's Tahrir Square.

(COMMERCIAL BREAK)

LU STOUT: Now, for nearly two years boats dragging high tech detection devices across the Indian Ocean have failed to find any trace of missing

Malaysia Airlines Flight 370. And on Sunday, one of these sonar vehicles searching the ocean floor was lost after colliding with an underwater

volcano.

Now the vehicle is called a toefish was being pulled by this search vessel, the Fugro Discovery (ph).

Now Australia's transport and safety bureau says the Fugro Discovery (ph) won't be able to resume search operations for another 12 days.

No, it has been five years since the Arab Spring uprising spread into Egypt. But there won't be any celebrating in Cairo's Tahrir square. Ian

Lee reports on the aftermath of the uprising and the dashed dreams of millions of Egyptians.

(BEGIN VIDEOTAPE)

IAN LEE, CNN INTERNAITONAL CORRESPONDENT: Arab leaders quaked at the sight of Tahrir. Millions of Egyptians took to the square, a force for change

demanding a better life.

That was 18 days in 2011. The masses returned to do it again in 2013. Shortly after the new government cracked down, police arrested Yousef

during a protest, charged with threatening national security, he says.

We are concealing the university student's identity. He is afraid for his safety.

YOUSEF, TORTURE VICTIM (through transaltor): They electrocuted me with two wires to the chest and the back. I was screaming in pain. My torturer

said the electricity was weak. Plug it into is the AC. The shock sent me and two guys holding me back a few meters.

[08:40:05] LEE: Yousef languished in prison for over a year.

How did you deal with the torture?

YOUSEF (through translator): I cried hard. I felt extremely weak, impotent and crushed. I broke a piece of glass and felt that I wanted to

end all of this. I wanted to die.

LEE: CNN can't independently verify Yousef's story, but Egyptian human rights lawyers say his it is not unique.

RAGIA OMRAN, NATIONAL COUNCIL FOR HUMAN RIGHTS: The use of extreme force, violence, torture violations in prisons and especially in police stations.

It has gone up on the rise.

LEE: One report detailed police abuse in 2015. In it, nearly 500 people died in police custody, 700 cases of torture were documented.

In the lead up to the anniversary of the revolution, activists tell us the government is cracking down on any perceived threats, including making

arrests as well as raiding cultural centers and private homes.

TIMOTHY KALDAS, TAHRIR INSTITUTE FOR MIDDLE EAST POLICY: There is a message to anybody that would consider protesting, that it won't be

tolerated this time around.

LEE: Egypt minister of interior defended his tactics as legal on state TV.

MAGDY ABDEL GHAFFAR, EGYPTIAN INTERIOR MINISTER (through translator): Questions are being raised now about some practices that violate human

rights. Well, they are necessary because of the reality we live in. We are facing a ferocious wave of terrorism that Egypt hasn't witnessed in

modern history.

LEE: Among the wave of terrorism, ISIS in Egypt has killed over 1,000 people, including hundreds of civilians. But Yousef sees the government's

tactics at counter productive.

The government gives the terrorist organizations a kiss of life. The youth join these groups as a

result of the government's oppression and terror. They don't give the young people a way to vent their anger.

LEE: Five years on, for many the hope of Tahrir has been replaced by despair.

Ian Lee, CNN, Ciaro.

(END VIDEOTAPE)

LU STOUT: And that is News Stream.

END

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