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Greece Begins Deporting Migrants; South Korean Webtoons; U.S. Presidential Candidates Campaign in Wisconsin Ahead of Vote Tomorrow; Panama Papers Leak Financial Information for Offshore Accounts. Aired 8a-9p ET

Aired April 04, 2016 - 08:00   ET

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


[08:00:19] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream.

Now, leaders and officials from across the world are denying allegations that they hid billions of dollars in secret offshore accounts. We will

have reactino to the Panama Papers leak.

Greece began sending migrants back to Turkey as a controversial deal with the EU takes effect.

And a new take on Star Wars from South Korea. The film saga remade as an online comic.

Let begin with the sharp denials and outrage from some of the world's most wealthy and powerful. Now they are hitting back at claims that they have

stashed billions of dollars of secret offshore accounts. All of this stems from a leak

from a law firm in Panama.

Now in total, 11 million documents were made public and allegations include the existence of a clandestine network involving associates of Russian

President Vladimir Putin and business ties between a member of FIFA's ethics committee and men indicted for corruption.

Now, CNN Money's Asia-Pacific editor Andrew Stevens is following the story for us. He joins us for more. And Andrew, what do we know at this stage?

ANDREW STEVENS, CNN MONEY: Well, what we know is that this is a massive leak, and it really shines a light on this whole offshore companies

organizations and just how broad and wide-ranging it is, and who is involved in it.

11 million documents, as you say, Kristie, looking at over 200,000 companies. And the upshot of this comes from the commission for

investigative journalism, which has spent a year or so investigating these leaked documents to see what and

who is behind them.

And the headline really is there are 12 current or former leaders, world leaders, have been named, another 128 politicians as well.

Now, the name that springs out is associates to the Russian President Vladimir Putin. Now, Mr. Putin himself was not named, but very, very close

associates to him were named. And certainly the Kremlin has responded by saying this is basically a pack of fibs.

But what the report said, and you referenced it just at the top of the story, Kristie, was that associates of Mr. Putin were involved in a

Clandestine network, operated by the associates that shuffled at least $2 billion through banks and offshore companies.

Not just Mr. Putin, Kristie, the head of Iceland has also been mentioned for his wife's holding of assets which are tied up with Iceland banks. The

head of Argentina, the president of Argentina, FIFA has also been involved.

Just to give you an idea of what sort of deals, and we still don't really know all of them at this stage, coming back to Mr. Putin, the report is

saying that one of the deals involved a $200 million loan, a right for a $200 million loan being sold for just one dollar by the associates of Mr.

Putin.

So, more and more information is coming to light about exactly who is behind these offshore companies, these private offshore companies and what

they have been up to.

LU STOUT: Yeah, more and more information will be coming to light. This is a huge leak, some 2.6 terabytes of information involved here. But we know

this, Andrew, that we know that having and using an off-shore company, that is not illegal. So, what is it about the Panama papers and about this leak

that is raising eyebrows here?

STEVENS: Well, really it is who is using these offshore companies. These are members of parliament. These are people who should be above this sort

of activity, at least that's what a lot of the implication is aimed at.

Yes, you are right, there is nothing new about offshore companies, companies all of the world have their own offshore operations. And it is

to minimize teir tax requirements. It is to park foreign funds in an offshore vehicle to keep the money away for very, very obvious reasons, to

pack their money offshore.

But what an offshore company offers, and why it is so attractive, is that the privacy is much, much higher. So it is very difficult to find out who

owns these companies.

Now this report, just to give you an example, this report actually said there was an internal audit of the company that made the leak, Mosaq

Cafonseca (ph). And that internal audit found that they knew the real owners of just 200 of 14,000

companies that they themselves had incorporated.

So, it gives you an idea of the level of secrecy that these companies have.

Now, they are used, as I say, for legitimate tax minimization. They can also, because of the privacy, be used for illegal tax evasion. They can be

used for busting sanctions. They can used for money laundering, all those sorts of much more nefarious activities.

No coincidence that Australia, the UK and Mexico have all said they are going to look into these reports to see whether there has been illegal

activities by people named in these reports.

LU STOUT: Millions of files leaked here, billions of dollars at stake here, and the details are just starting to trickle out. CNN's Andrew

Stevens reporting for us. Thank you, Andrew.

Now, Greek officials, they have begun the process of deporting hundreds of migrants back to Turkey now that a controversial deal with the EU has taken

effect.

Now, the transfer started this morning in Lesbos, Greece. And just over an hour ago, we received word that all three vessels have now made landfall in

the Turkish down of Dikili.

Now the relocation, it comes under a packed brokered between the EU and Ankara last month aimed at reducing the influx of illegal migrants.

Now, we are covering this from both sides of the Aegean Sea. Our Erin McLaughlin is near the port of Lesbos where those three vessels set up

early this morning. And CNN's Phil Black is in Dikili, the Turkish town where the ships docked a short time ago.

Now we'll have a report from Erin later in the hour, but first lets get the view from Turkish shores.

Let's go to Turkey right now where again Phil Black he's there. He's watching those three ships make landfall.

And Phil, how many migrants have been deported today? Where did they come from?

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: So, Kristie, in total 202 migrants aboard the three ships, the third of them finished its job of

unloading, disembarking those passengers only a short time ago.

So, that's it. That's the job done for today that is all we expect.

The majority, we are told, are from Pakistan. There were some from Afghanistan as well. And just two Syrians, two people who according to the

Greek authorities agreed to return voluntarily.

They, would seem as something of a rarity I think of the operations going forward, becuase what we're hearing just a short time ago, again from the

Turkish authorities, is that when it comes to Syrians, they will not be sent across the Aegean in boats, as we've seen this morning, instead the

plan is for Syrians, specifically, to fly them directly to camps in southern Turkey where many other of their countrymen had been sheltering

from the war just across the border.

Remember, Turkey has 2.7 million Syrians within its borders.

So, I think it's interesting to note that the majority of those being moved, mostly men, a very small number of women we notice getting off one

of the boats.

They are not from Syria itself. And indeed, as this goes forward, it's not entirely clear how many Syrians will be influenced by this new policy. The

policy states that only those who choose to come back, that is who don't apply for asylum in Greece, or those whose asylum application are rejected,

will be returned in this way. It is unlikely that that will apply to Syrians. Usually, their refugee applications are considered to be

successful because of the obvious circumstances in their home country.

Those that are returned, and I think that's what we saw here today, are usually those classified as economic migrants, those who are still trying

to get to Europe for a peaceful and prosperous future, but do not necessarily fit the criteria of refugee and being in need of protection,

because their homelands are not strictly that -- are not strictly a war zone, I should say.

So, the future of those that we saw transported here today is uncertain. Their individual cases will be assessed. They can apply for asylum here, or

it is very likely that many of them will be returned, Turkish authorities say, depending on the status of return agreements between Turkey and the

individual's country of origin, Kristie.

LU STOUT: This deportation plan has started in earnest today. Is this going to work? I mean, will it effectively deter migrants or will it just

shift the migrant journey through other parts of Europe?

BLACK: This is the open question. And I think this is what we're going to see moving forward. So, the point of all of this is to remove the burden

from Greece, remove some of that backlog, because other countries bordering Greece have shut their borders to migrants. It means you have got 50,000

people in camps there and more are still coming. The idea is that you move some of them back to Turkey, and also deter more from making the journey.

That's a key part of all of this, really, particularly moving into the warmer spring/summer months when it was expected that you would see many

more of those flimsy rafts packed with people risking their lives making that.

The idea is that if you make it clear that they are not getting any further than Greece, then perhaps fewer of them will in fact try to make the

journey.

And indeed, critics say that this is wrong morally. It's Europe shifting its burden, its moral burden. It's wrong legally in the sense that there

are questions over whether or not Greece can reasonably and accurately and efficiently assess each individual claim of asylum that is made there as is

required under the Geneva Convention.

And some critics, those who criticize Turkey, in particular, say that it's also illegal to be sending these people back to Turkey because this, again,

not under the Geneva Convention. You should not send people to a country that is not able to provide the proper protections for them.

Now, Turkey says we are doing all we can. We've operated an open door policy to give people refuge, particularly those from Syria. That's why

you've got that huge number, 2.7 million were Syrians here, but they are certainly operating only and to a significant degree with financial

assistance from other countries. And that's the sweetener, or one of the sweeteners in this for Turkey. In total, more than 6 billion euros of

direct funds from Europe to help them deal with their ongoing refugee challenge here, Kristie.

[08:11:08] LU STOUT: And the challenge is indeed enormous for Turkey.

Phil Black reporting inside the country on the controversial deportation plan that started today. Thank you, Phil, for your reporting.

Now to the deadly flooding in northwest Pakistan and parts of Pakistan controlled Kashmir.

Officials say at least 47 people have lost their lives since Saturday night. Most were killed when houses collapsed or in landslides. Another

37 people were injured. Now many roads are said to be blocked. And reports say thousands may be

stranded.

Now elsewhere in Pakistan, there was a special remembrance for more than 70 people who were killed on Easter Sunday when a suicide bomb ripped through

a crowded park. Now CNN's Saima Mohsin is in Lahore, Pakistan with more. And she joins us now.

And Saima, what is the mood and what is the reality for Christians in Pakistan after last week's bombing?

SAIMA MOHSIN, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, you mentioned the memorial services. I'm just by the Sacred Heart cathedral

and not as many people as usual came to church this Sunday. Of course, the priest said that there is a sense of fear amidst the community.

And even though the Christian community was targeted, more Muslims were killed by the way. Aside from the attacks, homes being burned down,

churches being bombed, I went to find out what life is like for Christians every day in Pakistan, including a lot of discriminatory laws.

Let's take a look.

(BEGIN VIDEOTAPE)

MOHSIN: Gunmen guarding the church. I meet Pastor Shakeel Anjum and he say it's strange to see gunmen outside a place of worship.

"We have 20 to guard us on a Sunday," he says.

This is the most densely populated Christian area in Pakistan. It was attacked last year.

Inside, the Free Church School, there are usually 40 children in this class, but many are too scared to attend since the Lahore park bombing.

Pastor Shakeel has buried six of his flock in one day.

SHAKEEL ANJUM, PASTOR, SACRED HEART CATHEDRAL (through translation): Our people are very poor. They can't afford the time to protest the attack. We

really need the support of Muslims of Pakistan and the government. As Christians, we love and pray for Pakistan.

MOHSIN: In a national address, Prime Minister Nawaz Sharif said each and every drop of blood is being counted. The score will be settled. It's being

settled apparently by the military and police in raids on terrorist hideouts across the country.

CECIL CHOUDRY, MINORITY RIGHTS WORKER: What about the beast within us? What about the beast that is within our houses and our society? If we do not

address those problems, this military operation will be a waste.

MOHSIN: Minority rights worker, Cecil Choudhry, has said successive governments have made space for extremists. The roots of the radicalization

of Pakistan are in its various laws.

CHOUDHRY: When you exclude the religious minorities from your textbooks, when you start putting material letters bias towards or discriminatory to

other faiths, how will they respect minorities when they grow up.

MOHSIN: Cecil's father, a decorated war veteran and pilot in two wars, have been removed from the history books.

And this ad clearly says it's looking for non Muslims to clean toilets. The ad was later retracted but exposed the institutionalized discrimination.

We found the Christian community feels isolated and neglected.

"My husband is a day laborer but doesn't find work. I only get cleaning jobs."

"It's clear our area is neglected because we are Christians. No roads or pavements."

UNIDENTIFIED MALE (through translation): How can we live here? We are under attack?

MOHSIN: Blasphemy law has often been manipulated to persecute minorities, including Christians. In a highly publicized case, a Christian mother of

five was sentenced to death for blasphemy. The Muslim governor of Punjab called for the death penalty to be revoked. He was gunned down by his own

guard.

At Sunday's service, a special song praying not just for Christians but for citizens of all faiths in Pakistan, we should be seen as equals in the eyes

of the state.

(SINGING)

(END VIDEOTAPE)

[08:15:35] MOHSIN: And, Kristie, of course it's not just the Christian minority, Ahmadis, Shias, Hazaras, Hindu communities have also come under

attack here -- Kristie.

LU STOUT: You know, it is a chilling and it was a very gripping image in your report that we

just aired when we saw the gunmen outside a place of worship there in Lahore.

Saima, after the bombing of last week, is this level of security now a reality for Christians and other minorities across Pakistan?

MOHSIN: Kristie, it is a reality for everyone whether you're Muslim, Christian, Ahmadis, or whatever religion you follow in Pakistan, you could

be under attack. It is just not something we are used to seeing in places of worship, places that are supposed to be of peace whether they are

mosques or churches. It's the reality of every day life now, because this particular splinter group has said that it plans to target soft targets.

That is why it broke away from the Taliban because the main Taliban group said it was no longer willing to target soft targets. It wanted to target

the military.

So, nobody feels safe. And in fact, I spoke to a Muslim man who told me he feels like a minority in Pakistan because if you're not the right sect, you

could be targeted too, Kristie.

LU STOUT: Saima Mohsin reporting live from Lahore where many families, many individuals, regardless of faith, live in fear.

Thank you, Saima.

Now, the race for the White House, the candidates they focus on the next battleground. Now coming up right here on News Stream, we'll look at what's

on the line in the U.S. state of Wisconsin.

Also ahead, fighting terrorism in Europe. A program in the UK tries to help reformed jihadists. We'll look at what's working and what's not.

(COMMERCIAL BREAK)

[08:21:05] LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream.

Now, some sporting news just in to us now. English Premier League side Chelsea have appointed Antonio Conte as their next manager. Now, Chelsea

won last season's Premier League title, but their struggles this season led to the departure of Jose Mourinho in December.

Now Conte is currently managing the Italian national team and will take over after leading his country at Euro 2016 this summer. And we'll have

much more in World Sport in about 25 minutes from now.

Now, White House hopefuls are focused on Tuesday's vote in the state of Wisconsin. Democratic front-runner Hillary Clinton and Bernie Sanders are

fighting over 86 delegates, and Sanders has a slight lead in the opinion polls.

The Republicans, they have 42 delegates up for grabs. And frontrunner Donald Trump leads in the overall delegate count, but Ted Cruz is running

ahead in the polls there.

And that is just one of the many obstacles Donald Trump will be trying to overcome on the

campaign trail.

CNN's Jason Carroll has more.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT: Well, Donald Trump remaining as defiant as ever saying he's had rough weeks before and he's come out on top, and

he's making a prediction saying that he will come on top here in Wisconsin come tomorrow.

GOP candidates making their final sprint to Wisconsin's primary tomorrow, barnstorming the battleground state. Trump admitting to having a rough week

leading up to primary day after a slew of missteps in his campaign.

TRUMP: I took that answer. And I -- I didn't like it, because I think a lot of people didn't understand it.

CARROLL: At a town hall Sunday, the front-runner still struggling to articulate his shifting stance on abortion, after saying that, if abortion

were outlawed, women who get the procedure should be punished.

TRUMP: Women go through a lot. They go through a tremendous punishment of themselves. And I didn't like it, because I wasn't sure people would

understand it. So I clarified it, but it was just a clarification. And I think it was well-accepted. CARROLL: In a move to stem disapproval from

women voters, Trump also

saying he regrets retweeting a mean-spirited photo of Ted Cruz's wife. But Cruz, who leads Trump in Wisconsin, says he's over it.

CRUZ: It's gotten to the point where I could not care less about Donald Trump.

CARROLL: Fueling the firestorm, Trump still standing by his campaign manager, facing battery charges for an alleged assault on a reporter. The

billionaire fighting to make last-minute gains, state with an aggressive anti-Trump movement. Trump taking aim at rivals Cruz...

TRUMP: He's a cheater. He's a cheater. He's a dirty, rotten cheat. Remember that.

CARROLL: ... and John Kasich.

TRUMP: Everyone says he's such a nice guy. He's not a nice guy. He's a nasty guy, if you want to know the truth.

CARROLL: Trump doubling down on calls for the Ohio governor to leave the race, arguing that Kasich is taking his votes and has no chance of winning

the nomination.

TRUMP: The problem is he's in the way of me. Not Cruz. He hurts me more than he hurts Cruz.

CARROLL: Another lingering issues: controversy over Trump's suggestion Japan and South Korea develop nuclear arms to protect themselves.

KASICH: You don't go running around talking about using nuclear weapons, period, end of story.

CAROLL: And Trump also taking heat for those controversial statements he made about the U.S. economy, saying that the country is heading for a

recession and that it's a, quote, terrible time to invest in the stock market. His daughter Ivanka telling him to be more presidential. Trump

saying he'll be more presidential once Kasich and Cruz drop out of the race.

Jason Carroll, CNN, Lacrosse, Wisconsin.

(END VIDETAPE)

LU STOUT: And you can get all the latest on the U.S. presidential race on our website. Just go to CNN.com/election for the latest delegate counts

and what lies ahead state by state.

Now, a sense of normality is slowly returning to Brussels, the airport there where a growing, but it's still smaller than normal, number of

flights are arriving and taking off.

Now, the airport it officially reopened on Sunday, but only three flights were allowed to go out. Now, they were the first since deadly blasts

ripped through the passenger halls almost two weeks ago.

Now, passengers are being told to arrive plenty of time before their flights because of heightened security.

Now, terrorism is of course a problem elsewhere in Europe. Police in Britain are holding two people for what they are calling Syria-related

terror offenses. A 24-year-old man and 20-year-old woman have been arrested.

Now, the country does have de-radicalization programs to help convicted jihadists get back into society after they leave prison, but as Nic

Robertson found out, more must be done.

(BEGIN VIDEOTAPE)

(CROSSTALK)

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR (voice-over): Three years ago in London...

JORDAN HORNER, MUSLIM VIGILANTE PATROL MEMBER: You're walking through a Muslim area dressed like (EXPLETIVE DELETED). You need get out of here.

ROBERTSON: ...a Muslim vigilante patrol, the threatening voice. That's Jordan Horner. Today, he says he's a changed man.

HORNER: It's something which when I was sincere to myself, I said, yes, it was something which I was regretting.

ROBERTSON: Back then, he was a Muslim radical, praised Muslim killers. He was dangerous and went to jail.

Today, he credits this man, former cage fighter and de-radicalizer, Roger, with turning him around.

HORNER: That made me understand that, you know, that the actions that I did do were not Islamic.

UNIDENTIFIED MALE: He's able to re-conceptualize things for the individuals in a way that allows them to challenge their own internal beliefs. There is

a very, very select few that are actually quite effective in what they do.

ROBERTSON (on camera): Getting de-radicalizing right has never been so important. British officials estimate about 800 people have gone to join

ISIS in Iraq and Syria, and about half of those have come back.

Then there's Jordan Horner and others like him, an unknown number, who radicalized and never left.

But what Roger, who I have been covering for several years, is telling me is shocking. That his scant government funding is drying up as authorities

re-evaluate their programs.

(voice-over): Always working on a shoestring. He is down to his last $200 in an overdraft account.

HORNER: We were doing about 70 percent of our work for free. What's ended up happening is that even that agreement has now disappeared.

ROBERTSON: But he is still in demand. Plenty of jailed terrorists are asking for his help.

HORNER: I wanted to go after a few weeks, but I couldn't go on my own. And he says, I still have terrible nightmares, and I want you to help me.

ROBERTSON: This letter he says is from a British radical who joined ISIS in Syria, now a convicted terrorist.

HORNER: We're not able to reach those individuals because there isn't an understanding there of how to deal with this phenomenon.

ROBERTSON: He is frustrated, and so is expert, Douglas Weeks. Both say most de-radicalizing programs can alienate radicals.

DOUGLAS WEEKS, JIHADIST EXPERT: What they're saying is you're wrong. And so you immediately have this kind of confrontational approach.

ROBERTSON: The British governments prevent de-radicalization strategy details hundreds of people who have been helped through education, criminal

justice, faith, charities, online and health approaches to de- radicalization. In jail, Horner says authorities tried de-radicalizing him using a psychological approach, telling him he was wrong, to be a good

husband, a good father. Nothing worked until he met Raja.

HORNER: I knew I was a father. I knew I was a husband. Once I knew from a religious perspective what I did was incorrect, then I had to question, OK,

what's the solution?

ROBERTSON: A solution, it seems, may be at hand. Embracing it, still a challenge.

Nic Robertson, CNN, London.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And still to come on the program, some choppy political waters for Brazil, as the president fights to stay in

office just months before the Olympics. We go live to Rio.

(COMERCIAL BREAK)

(HEADLINES)

[08:32:59] LU STOUT: Now ships carrying just over 200 migrants have arrived in the Turkish town of Dikili. Now, the migrants departed Greece

early on Monday morning. They are being deported as part of a controversial deal between the European Union and Ankara.

Now, CNN's Erin McLaughlin has been monitoring the transfer of migrants across the Aegean Sea. She is filed this report a short time ago near the

Greek Island of Lesbos.

(BEGIN VIDEOTAPE)

ERIN MCLAUGHLIN, CNN INTERNATIONAL CORRESPONDENT: It`s in these waters that thousands of migrants have risked their lives, men, women and children had

died trying to reach that coastline. That`s Greece. To them, it represents the beginning of a European dream.

But for over 200 migrants today, predominantly from Afghanistan and Pakistan, that reality is in the other direction, and that is Turkey. They

were deported there today and authorities trying to send a message that a regular migrants are no longer welcome on these shores. They`re no longer

welcome in the European Union. And if they risk their lives and spend their money to get here, they will simply be sent back.

But the real question is, are potential migrants listening, especially when you consider what you see just over the coastline, those are live jackets,

from newly arrived migrants. And the Greek police released numbers overnight, over 300 migrants arrived just in the last 24 hours, compare

that to just 200 deported. More are arriving still than are being deported and that is a big problem because the success of the deal between the

European Union and Turkey depends on stemming the tide of migrants into Greece.

Erin McLaughlin, CNN, Lesbos, Greece.

(END VIDEOTAPE)

LU STOUT: Now, Brazil is struggling to fill up seats for the Olympic Games this summer. With just four months to go, half the tickets have been sold.

Now, the country faces a series of issues. Once an economic powerhouse, its economy is now suffering its worst recession in years. And then there

is the Zika outbreak. Some athletes and health experts have been calling for the games to be

postponed because of it.

And that is not to mention the political chaos that's unfolding there as well.

Now, CNN's Shasta Darlington is in Rio de Janeiro for more on this story. And Shasta, let's talk about the political side. You have got protests in

the streets. We have a president there who may get impeached. How is the political turmoil affecting Rio 2016?

[08:35:28] SHASTA DARLINGTON, CNN INTERNATIONAL CORRESPONDENT: Well, as you said, Kristie, it is really just piling one more problem on top of all

of these other issues. The new sports minister, in fact, just came in and said with such dismal sales, the government is even considering buying up

some of the tickets and then distributing them among schools.

The political issue here, what we've seen are all of these hundreds of thousands of protesters on the streets. And while it's been largely

peaceful, it's broadcasting this image around the world of political instability, and certainly could turn off some people who were considering

coming to the games.

You know, initially, organizers had expected half a million visitors. They may be revising that down.

This comes after more than a year of a recession, which means taht Brazilians themselves can't afford to buy as many tickets as initially

anticipated.

There's the Zika virus, as you mentioned. But the real scary part there is that it has been linked to very serious birth defects. Women who are

pregnant or thinking about getting pregnant have been told to stay away from the games.

So, you have ot all of these elements that nobody could have anticipated back in 2009 when Rio de Janeiro won the bid, but certainly making people

around the world thinking about do I want to go to Rio de Janeiro in August. Maybe I will sit this one out and wait for the next one, Kristie.

LU STOUT: OK, you've walked through the political concerns there, the health concerns of the Zika virus. And there is also the recession, the

worst recession in, what, 25 years there in Brazil.

Organizers there for the Olympic Games say that they want to clamp down on costs. Have they been able to do that successfully?

DARLINGTON: They have cut some corners, Kristie. We have seen them, for example, cut down on the number of volunteers that they are going to bring

in. While they may not be paying them, there is still the cost of the uniforms, the food, putting them up. So they are cutting those corners.

The venues are still being largely finished and handed over on time, but in some cases they are being scaled back. Some of the temporary stands, for

example, at the canoeing event, they were eliminated. Some of what were going to be large permanent tents have been turned into temporary pop-up

tents.

So, they looking to cut costs where they can.

They say the Olympics in and of themselves will not be affected. Another big area, they say, won't be affected is security. Rio has a chronic

problem with crime and violence. So, they have a contingent of 85,000 police and troops, that's more than double what we saw in London. They say

that will not be affected.

But yes, we have seen some corner cutting in different areas, Kristie.

LU STOUT: Yeah, a challenging time to say the least for Brazil.

Shasta Darlington reporting live from Rio for us. Thank you, Shasta

Now, a galaxy far, far away can now be found close to home in your smartphone in fact. Now, we'll show you how some fans in South Korea are

getting to see new scenes in the Star Wars universe.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now, a controversial independent movie just won Hong Kong's top film award this weekend, despite China's harsh response to it. Now Ten Years depicts

a grim future for Hong Kong struggling under Beijing. Its language, culture and rights stripped by Chinese authorities.

Now the bleak film has been censored, and in fact denounced on the mainland. Chinese web portals even refused to stream the award show.

Now the creators of Ten Years praised the film awards for having the courage to give them the win. The film's dark vision resonated with

audiences as there are rising tensions between Hong Kong and Mainland China.

Now, comic books have taken on a new form in South Korea. Millions across the nation are hooked on a huge library of internet-based comics called

webtoons. Now they are geared toward the smartphone generation and cover genres from comedies to thrillers, some even revamp beloved franchises like

Star Wars.

And now the webtoon craze is going global. Paula Hancocks has more.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: A long time ago in a galaxy far, far away, a multibillion dollar franchise was born.

Seven movies, four decades later, there's a new take on the trilogy that started it all, a digital take seen through the eyes of a young Luke

Skywalker. This is a webtoon, an online version of a comic book that South Koreans love reading on their mobiles.

It starts with a stroke of a pencil, an artist's interpretation of a hallowed story with the freedom to create new scenes not in the original

films.

The job of Star Wars fan and Korean comic artist Hong Jaoga, drawing up to 30 pictures a day. He says the only time he's not at his desk is when he's

sleeping or eating.

"When I went to the Star Wars celebration and visited Lucas Film for meetings," he says, I

suddenly realized how big this was and felt under pressure. Fans fight over different versions of the stories. So I realized I will never be able

to please everyone."

A struggling comic industry in the early 2000s led to the creation of South Korea's webtoon, not a $360 million market. It's expected to double within

two years.

And this is the end product. Your Star Wars webtoon on your phone, your tablet, your computer, wherever you want to watch it. It is already very

popular here in South Korea. It's in the top 10. And just a few months ago, they translated it into English to tap in to the global market.

The company behind that translation exported the Star ars webtoon to the United States last October. Its other webtoons are already read in a

number of Asian countries, including China.

One in three Koreans reads a webtoon almost every day, a cultural mania fueled by a fast internet and an obsession with smartphones, a line webtoon

hopes that this can become a global obsession.

FRANK OZ, VOICE ACTOR: May the force be with you.

HANCOCKS: Paula Hancocks, CNN, Seoul.

(END VIDEOTAPE)

LU STOUT: Some beautiful comic art there.

And that is News Stream. I'm Kristie Lu Stout. World Sport with Alex Thomas is next.

END