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Turkey Strikes Kurdish Targets in Iraq; ISIS Retakes Palmyra; Trump Comments Question One China Policy; North Korea Conducts Military Exercise Attacking South Korean Presidential Palace. 8:00a-9:00a ET

Aired December 12, 2016 - 08:00   ET

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

[08:00:39] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream. Now, Beijing says it is seriously concerned by

Donald Trump's latest comments after the president-elect questions whether the U.S. should continue to consider Taiwan as part of one China.

Turkey strikes Kurdish targets in northern Iraq after 44 people are killed in bomb blasts in Istanbul.

And we take a special look at coral reefs dying in the waters off Madagascar and the impact on communities that depend on them.

And we begin with Donald Trump ruffling feathers in Beijing, this time with his suggestion that the U.S. may not stick to the One China Policy.

Now, reaction from Beijing has been swift with the foreign ministry saying the One China policy is the foundation of relations between the two

countries.

Now, here is what Donald Trump told Fox News on Sunday.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT-ELECT: I fully understand the One China policy, but I don't know why we have to be bound by a One China policy

unless we make a deal with China having to do with other things, including trade.

(END VIDEO CLIP)

LU STOUT: Now, a diplomatic controversy broke out earlier this month when Donald Trump accepted that phone call from the president of Taiwan. And

under the One China policy, the U.S. has diplomatic relations with Beijing, but not Taipei.

Now, CNN's Matt Rivers has more on the reaction from China. And Matt, China's ministry of

foreign affairs issued a rather strong statement about what Trump said. Tell us more about what is

happening and the word from Beijing.

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: Well, at a press conference at the ministry of foreign affairs this afternoon, a spokesperson said that

the Chinese government is seriously concerned about the president-elect's comments and urged the incoming administration to adhere to the policy that

has been a bedrock of Chinese-U.S. diplomatic relations for the better part of four decades now.

Let's show you a little bit of what that spokesperson had to say.

(BEGIN VIDEO CLIP)

GENG SHUANG, SPOKESMAN, CHINESE MINISTRY OF FOREIGN AFFAIRS (through translator): Adhering to the One China principle is the political bedrock

to the development of U.S.-China relations. If it is compromised or disrupted, the sound and steady growth of the bilateral relationship as

well as bilateral cooperation in major fields would be out of the question.

(END VIDEO CLIP)

RIVERS: So he says things like out of the question. That is a very, very strong statement coming from the spokesperson there, but in a measured

tone. But the Communist Party here in China certainly has other ways of reaching out and expressing its opinion. In fact, it does often through

state-run newspapers in a more unofficial sense, and earlier today an editorial that ran in state-run newspaper The Global Times actually said

that Trump was like a child in his ignorance of foreign policy. So there is some consistent reaction from the government here in China, a very

negative reaction to the president-elect's comments, Kristie.

LU STOUT: Absolutely.

Now, Donald Trump in that interview with Fox, he says that he could drop the One China policy

unless China makes key concessions. But over what, and would china be willing to negotiate?

RIVERS; Well, what you heard the president-elect talk about in this interview with Fox News is the kind of gripes that he has talked about when

he's talked about when he talked about China for the last 18 months or so. He talks about how the Chinese-U.S. trade deal hurts American workers and

American businesses. He talked about China's expansion in the South China Sea. He talked about China's role in stopping the North Koreans from

continuing to develop their nuclear programs, and he said that he could use the One China policy as a bargaining chip to get China to come to the table

more in the way he wants them to on some of those other issues.

But will China negotiate using the One China policy? I think most people would tell you no, because of what we've heard from Chinese leaders.

Remember what the One China policy is: Beijing views Taiwan as a renegade province, a breakaway province, and so if the Trump administration ignored

that policy and said to Taiwan we will formally recognize you diplomatically, that could signal to Beijing that the Trump administration

is in favor of an independent Taiwan. And what we have heard from Beijing time and again, is that is a line they are not willing to cross when it

comes to negotiating.

Now, of course, Kristie, this is all hypothetical at this point, but the implications of the president-elect's statements here are very, very large

in many different ways.

LU STOUT: Absolutely, Matt Rivers there with analysis and that stern reaction from Beijing, thank you.

That's the reaction from China, but what about Taiwan? Well, reaction from at least one

Taiwan lawmaker welcomes the development from Trump. Now, he spoke a short time ago with

Democratic Progressive Party legislator Lo Chih-Cheng.

(BEGIN VIDEO CLIP)

LO CHIH-CHENG, DEMOCRATIC PROGRESSIVE PARTY LEGISLATOR: For Taiwan, we welcome this development, because over the past few years or decades, the

U.S. relationship with China and Taiwan has been barred by the One China policy, which to us is not a very healthy development, because there are

all kinds of constraints in the relationship between Taiwan and Washington.

LU STOUT: Now, Donald Trump says that he would drop the One China policy unless China makes concessions on trade and other issues. Doesn't that

turn Taiwan into a bargaining chip and a much wider game between the U.S. and China?

CHIH-CHENG: Well, there are challenges and as well as opportunities in making that kind of remarks. In other words, on the one hand, in the past

the so-called One China policy has been the so-called principle in conducting U.S. relations with Taiwan, and now it's become something of

negotiable that is, you know, Trump is waiting to accept the so-called One China policy as soon as China is willing to make concessions.

So that has become something that is negotiable. But for us, we are very concerned about what kinds of things can be negotiated out of this kind of

U.S.-China relationship.

LU STOUT: Are you also concerned when you discuss the issue among other lawmakers there in Taiwan that Taiwan could be turned into a pawn for

President-elect Trump to play with?

CHIH-CHENG: Yes and no. You know, in international politics, our countries cooperate on common grounds or common interests. Sometimes they

have to compete against each other. So the very issue is whether Taiwan's interests will be served in Mr. Trump's new policy.

LU STOUT: We have heard from China's ministry of foreign affairs. They said they are seriously concerned by Trump's comments on the One China

policy, adding that if the policy is compromised or disrupted, the sound and steady growth of China-U.S. relations would be out of the question.

China won't allow it. And there's so much at stake here. So do you really think that Donald Trump would actually end the One China policy?

CHIH-CHENG: We're not sure about that yet, because Mr. Trump is still the president-elect, so we have to wait and see after he's sworn in whether his

policy towards China would be actually changed. So we just have to wait and see.

LU STOUT: And a final question for you. Last week Donald Trump appointed Terry Branstad, the Iowa governor, to be the new U.S. ambassador to

Beijing. We know that the governor is a long-time friend, an old friend, of Xi Jinping. Does that appointment worry Taiwan?

CHIH-CHENG: We don't want to engage in some sort of zero sum competition in this triangular relationship. So we welcome the improvement of

relationship between Beijing and Washington as long as it's not at the expense of Taiwan's relationship with the U.S.

So there is no -- for us, there's no such thing as zero sum competition in this triangular relationship.

(END VIDEOTAPE)

LU STOUT: And that was Taiwan DPP lawmaker Lo Chih-Cheng speaking to me earlier.

Now, the president-elect of the United States is also going head-to-head with the U.S. intelligence community. Now, agencies are increasingly

confident that Russia tried to interfere in the U.S. election. Now, he says he doesn't buy it, but that that has not stopped some lawmakers from

calling for an investigation.

Here's Jason Carroll.

(BEGIN VIDEOTAPE)

DONALD TRUMP, U.S. PRESIDENT-ELECT: I think it's ridiculous. I think it's just another excuse. I don't believe it.

JASON CARROLL, CNN CORRESPONDENT (voice-over): Fiercely attacking the credibility of the Central Intelligence Agency, the president-elect

dismissing the intelligence community's assessment that Russia meddled in the election to help him win.

TRUMP: They have no idea if it's Russia or China. Could be somebody sitting in a bed someplace.

CARROLL: And claiming, without offering specifics, the analysis is politically motivated.

TRUMP: I think the Democrats are putting it out, because they suffered one of the greatest defeats in the history of politics in this country.

CARROLL: But it's not just Democrats. A group of bipartisan senators are joining forces, calling for Congress to launch an in-depth probe into

Russia's tampering, saying the reports "should alarm every American" and urging cyberattacks "cannot become a partisan issue."

GRAHAM: I think they did interfere with our elections, and I want Putin personally to pay a price.

CARROLL: This as speculation continues over Trump's nomination for secretary of state. Multiple sources familiar with the transition telling

CNN ExxonMobil chairman and CEO Rex Tillerson has emerged as the frontrunner.

[08:10:12] TRUMP: He's much more than a business executive. I mean, he's a world-class player.

CARROLL: The possible nomination already sparking sharp criticism from some in the GOP establishment, concerned about Tillerson's own ties to Russia.

In 2013 Tillerson was awarded Russia's top honor for foreigners, the Order of Friendship, from Russian President Vladimir Putin.

SEN. JOHN MCCAIN (R), ARIZONA: It's a matter of concern to me that he has such a close, personal relationship with Vladimir Putin.

CARROLL: Florida Senator Marco Rubio blasting Trump's pick, tweeting, "Being a friend of Vladimir is not an attribute I am hoping for from a

secretary of state."

And the president-elect, again, showing his willingness to challenge China, questioning whether the U.S. should keep its long-standing position that

Taiwan is part of one China.

TRUMP: I fully understand the one-China policy, but I don't know why we have to be bound by a one-China policy, unless we make a deal with China

having to do with other things, including trade.

CARROLL: Jason Carroll, CNN, New York.

(END VIDEOTAPE)

LU STOUT: And that was Jason Carroll reporting.

And to Egypt now, where funeral services have begun for the dozens of people killed in Sunday's bomb blast at a Coptic Church in Cairo.

Local media report at least 25 people were killed in the blast. No one has claimed responsibility. Egypt's president has called for three days of

national mourning, and the country's garnd mufti has condemned the bombing as a deplorable terror attack.

Now, Turkey is also reeling from another deadly weekend attack and the death toll from twin

bombings in Istanbul continues to rise. At least 44 people were killed.

Now, Turkish media report 36 of the victims were police officers. The Kurdish separatist group

TAK., a break away of the PKK, has claimed responsibility

Now, Turkey has been responding with force, launching dozens of air strikes on Kurdish targets in northern Iraq, and 235 people have been arrested,

accused of inciting terror for the PKK.

Now, CNN's Becky Anderson joins us live from Istanbul. And Becky, from deploying fighter

jets to mass arrests, tell us more about how Turkey is retaliating.

BECKY ANDERSON, CNN INTERNATIONAL CORRESPONDENT: Well, if yesterday was a day of mourning, Kristie, today it seems is the day of retribution.

To quote the interior minister, the blade of the state stretches far and wide, is what he said, and that it seems was no idle threat.

Witness the bombing of the Kurdish militant positions, as you say, in neighboring northern

Iraq and the rounding up of more than 230 people in country-wide raids. Pro-Kurdish political activists, according to the government, including,

they say, those alleged to be using social media for, quote, propaganda.

It's 24 hours since this group that goes by the acronym of TAK claimed responsibility for twin

bombings outside a soccer stadium. And experts tell me that they first emerged around 2004

and are considered a splinter group of the larger PKK, which, of course, is a Kurdish militant group waging an insurgency here for more than 30 years

and outlawed in Turkey.

Now, this group's tactics to date have been to disrupt the Turkish economy by targeting

tourism and the security operators. And the blast at that soccer stadium, which, by the way, is

right next to our position here, is right in the heart of Istanbul, which is the engine of Turkey's economy and one of its main tourist attractions.

Here's the deal, Kristie, Saturday's attack here in Istanbul was the 17th major terrorist attack by either Kurdish militants or ISIS in Turkey this

past year alone. And on top of that, you have political instability and polarization brought about by what was a failed coup in the summer.

Many people here will tell you that this is one of the most tumultuous years in modern Turkish history. And I think that's probably a fitting

description.

Joining me now is Furkan Halt Yolou who is a 23-year-old master's student at a Sekaria University, which is an hour's drive from Istanbul.

Furkan, 17 attacks in Turkey this year alone. How does that make you feel?

FURKAN HALT YOLOU, STUDENT: Well, of course, it makes me feel concerned and a bit worried about my country's situation and the state of security in

terms of the citizens' live in styles in Istanbul, but over that, I'm worried as a (inaudible), because what we

have experienced is experiencing in other parts of the world as well. I remember Tunisia, I remember Brussels airport, I

remember the Charlie Hebdo attack. I remember Orlando. So these kind of attacks all for this year is -- has been happening so I feel more worried

as a world citizen in terms of, you know, I feel...

ANDERSON: It's interesting. And I hear what you're saying. I also do hear from people your age and above that there is a sense of resilience.

I'm not talking about a fatigue with the amount of attacks, because it's absolutely awful, but a sense that life must go on.

To the Kurdish position, you will get people saying that it is the fault of the government who hasn't engaged with the separatists' ideas that this is

now the upshot of that. Your response?

[08:15:34] YOLOU: Well, we've been hearing those sort of ideas and debates on the topic, but I think it's relation to an older issue. It was the at

the end of the political process in 2009, it was PKK who stopped the process,who sort of disengaged from the process and like started to

resilience and started to terrorist attacks again.

So in terms of blaming the government, the Kurdish people should rethink their position in

understanding and perceiving HDP and PKK.

ANDERSON: Very briefly, are you optimistic about the future?

YOLOU: Of course, I'm optimistic about the future, because in the defense industry, Turkey have been really striving for greatness. We have built

the largest (inaudible) tank landing ship in the whole world, so I think Turkey's improving in all the industries that are really important at this

time.

So I'm really hopeful, but I'm actually worried at the same time as a world citizen, because all

the (inaudible), all the cities, big cities, are under threat of international terror that we are facing.

ANDERSON: You didn't hear it from me, you heard it from a 23-year-old master's student here, who says he is optimistic, Kristie, but he is

concerned, as well, about the future. Back to you.

LU STOUT: All right, Becky Anderson reporting live from Istanbul. Thank you very much indeed for that.

Now, you're watching News Stream. Keep it here, because still ahead in the program, it is the first day of trial for IMF chief Christine Lagarde.

How a decision she made nearly a decade ago is threatening to damage her career.

Plus, the Syrian army is pushing ahead to take the rest of eastern Aleppo from rebels. We'll have the latest on the battle.

(COMMERCIAL BREAK)

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

Now, the head of the international monetary fund is standing trial this hour over her handling of a long runnning fraud case.

Now, she is accused of negligence in dealing with a case nearly a decade ago when she was the

French finance minister.

Now, for more on this story, I want to bring in our Paris correspondent, Melissa Bell. And Melissa, the trial has just started. What is happening

in the courtroom today?

MELISSA BELL, CNN INTERNATIONAL CORRESPONDENT: Christine Lagarde is now inside that courtroom, Kristie. She's accused, as you said, of negligence

that led to the embezzlement of money.

Now, her lawyers will be arguing throughout the day that, in fact, this trial should be pushed back, for one simple reason, and that is the

question of the embezzlement has yet to be resolved. It is the subject of another court case that Christine Lagarde should have been negligent at the

time when she was economy minister, her lawyers will say it's something that should be looked at subsequently.

We had a chance to catch up with one of Christine Lagarde's lawyers over the course of weekend. Here's what he had to say, Kristie, about what

their plans were for today.

(BEGIN VIDEO CLIP)

[08:20:23] CHRIS BAKER, CHRISTINE LAGARDE'S ATTORNEY: The court has the opportunity to declare a delay, because we think it's premature to hold a

trial today. The reason we think it's premature is because the charges are charges of negligence to have caused a possible misappropriation of funds,

and that misappropriation of funds to date is not established.

(END VIDEO CLIP)

BELL: Now, it should be noted that Christine Lagarde doesn't have to be in court at all this week. This is something she's chosen to do, and, in

fact, when she entered just a short while ago smiling for the cameras, Kristie, she was told by the judge leading the

court, the trial, that she had the right to remain silent.

I have no intentions, he said, whatsoever, of remaining silent. She, explained her lawyers over the course of the weekend, is extremely keen to

put her case to this court and put this once and behind her -- put this behind her once and for all.

LU STOUT: So much at stake for Christine Lagarde. Melissa Bell reporting live for us from Paris, thank you.

Now, turning live to Syria, where government troops are gaining ground in the battle for eastern

Aleppo. Now, Syrian forces have been bombing rebel-held areas with air strikes and mortar fire. As they capture more neighborhoods, civilians are

fleeing the city by the thousands.

Our Frederick Pleitgen is following developments from Beirut, Lebanon. He joins us now live. And Fred, the offensive and months of intense

bombardment have created this huge humanitarian crisis in Aleppo. What have you seen?

FREDERK PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: Yeah. And, you know, all this, of course, as massive fighting continues to go on. It really

seems as though over the past couple of hours that a lot of those rebel defenses that are left

in Aleppo seem to be collapsing. There are people within the Syrian government who say that this could be the final stages of the

offensive there in Aleppo, that they are very, very close to ousting the rebels from Aleppo.

And, of course, all this, as you mentioned, has created this mass of people who are trying to leave the city. And it's very dangerous for them. We

were on the southern front line in Aleppo, and we saw people risk their lives to try and get out. Here's what we saw.

(BEGIN VIDEOTAPE)

PLEITGEN: This is as close as journalists can get to Aleppo's southern front line. Airstrikes, artillery and gun battles, the shrinking opposition

enclave is getting pounded by Bashar al Assad's forces.

For tens of thousands of civilians trapped inside, the only escape is to walk right through this front line. In a situation, the rebel area is so

bad that many are an exodus under fire.

There is a massive, almost avalanche of people trying to make it to safety. As you can see, there are people who are carrying their children but also a

lot of children left to make the trek themselves. It's so difficult for many of them. Of course, they've been under siege for such a very long

time.

This is what total exhaustion from starvation and war looks like. This woman wounded when her house collapsed during the fight.

"It is indescribable inside," she says. "Hunger, suppression and everything bad you can imagine. No medicine, we have nothing. Literally we couldn't

get any treatment for our injuries."

All of this, of course, as the rebels continue to lose control of those eastern districts of Aleppo and also while the fighting is going on here.

We're hearing constant barrages of artillery. We're hearing rockets being fired. It's a very dangerous trek that these people are making and it's a

trek also into a very uncertain future.

We found this family about half a mile from the front line, too tired to walk any further. "I left my house in there," the father says. "I don't

want my house. I want to be safe. I want my children to be safe."

And thousands like them are also risking their lives going through one of Syria's most violent front lines hoping somehow to reach a safe place.

(END VIDEOTAPE)

PLEITGEN: And, of course, Kristie, that was just absolute desperation that we saw among many of those people there. And it was really hard to

describe how scared, especially a lot of the children were, when they were walking through that battle zone as a lot of the heavy weapons were still

being fired around them.

So, certainly, a lot of desperation that's causing these people to make that dangerous trek, and at the same time, the way that the battle seems to

be going, especially today with those massive gains by the Syrian military, really isn't clear how much longer the rebels are going to be able to hold

out, Kristie.

[08:25:12] LU STOUT: Yeah, and Fred, wow, such vivid scenes in that report that you filed with these desperate civilians fleeing the violence in

Aleppo. And as Syrian forces continue to make brutal gains there, what is happening to Palmyra?

PLEITGEN: Well, yeah, Palmyra is one of those places that really is basically the opposite end of what's going on in Syria. While the Syrian

government forces have been making those major gains in Aleppo, ISIS has managed to creep back into Palmyra.

And apparently what's been going on, apparently the last couple of days the weather has been very bad over the Palmyra area, which is limited the air

strikes there.

At the same time, the Syrian government forces also only left a skeleton crew there, a skeleton force there, as, of course, they draw most of their

forces to Aleppo. And ISIS used that to come through the desert and take Palmyra. The latest that we have is they are in control of the entire

city, and the Syrian government says it wants to try to put together a force to push them out again, but certainly that seems like something that

is very, very difficult. And, of course, there is grave concern about those

archaeological sites that are a treasure for all Syrians, no matter which side they stand on -- Kristie.

LU STOUT: And, Fred, if Palmyra could be suddenly retaken by ISIS, how hard is it going to be for Bashar al-Assad to restore his rule in Aleppo?

PLEITGEN: Well, you know, one of the things that we have to keep in mind is that right now he's binding a lot of his forces there in Aleppo and

certainly if he manages to completely oust the rebels from Aleppo, a lot of his forces would be free to then act on other front lines in Syria. It's

not just in and around the Aleppo area, but, of course, we have all of Idlib province that's pretty much still held by the rebels.

There's still other pockets north of Homs, as well. So certainly a lot of forces that are currently bound would be able to do other things there.

But yeah, of course, you see that in the Syrian civil war, a lot of things can happen, and nothing is ever for certain.

Remember, just a couple of month sago, I was actually in Palmyra when the Russians put on a

concert there and it was unthinkable that ISIS could come back, and yet here they are once again.

So, certainly, that is something that could happen.

LU STOUT: Yeah, the situation in Aleppo and across Syria is ever fluid. Fred Pleitgen, as always, we thank you for your reporting. Take care.

Now, divers all around the world are seeing more and more coral reefs die off. And for Vasu (ph) people of Madagascar, the death of their reefs

means even finding a simple meal just got much harder. We have their story next.

(COMMERCIAL BREAK)

(HEADLINES)

[08:31:18] LU STOUT: Donald Trump says he is open-minded about climate change. In an interview with Fox News, he claims no one really knows if

it's real. And Trump is studying whether the U.S. should withdraw from its commitment to cut greenhouse gas emissions made at a Paris summit.

Now, scientists and activists are worried by Trump's stance on climate change. On the campaign trail, Trump he called climate change a hoax that

was pushed by China and recently he named Oklahoma Attorney General Scott Pruitt to head the Environmental Protection Agency.

And in the past, Pruitt has said that he doubts climate change is real and he's currently suing the

EPA.

But a majority of scientists insist global warming is real, and that we are all responsible. A major impact is on coral reefs. These beautiful

underwater ecosystems are dying at alarming rates. Madagascar's Veasu (ph) people are victims.

And as John Sutter shows us now, the reefs' death means their way of life is also dying.

(BEGIN VIDEOTAPE)

JOHN SUTTER, CNN CORRESPONDENT (voice-over): This is Nosi Andragabala (ph), a tiny fishing community off the coast of East Africa. It's home to only a

few dozen people, and among them are Hari (ph) and Lydia (ph), who are raising six children.

(SHOUTING)

SUTTER: This family knows this reef better than anyone. Until recently, they never saw coral this damaged.

Extreme heat this year has caused coral all around the world to start to suffocate and turn ghostly white. The aftermath looks like a disaster zone

or the ruins of an ancient city. No one here can make sense of it.

Scientists do know what's going on. Divers surveyed these waters during a heat wave in April and they say about 70 percent of the reef was damaged by

high temperatures. This is a clear sign of climate change. We're causing this damage by burning fossil fuels, heating up the oceans and making them

more acidic.

But Lydia has only been in a car once in her life. She may not understand the science, but she knows what she sees.

UNIDENTIFIED FEMALE: (SPEAKING FOREIGN LANGUAGE)

SUTTER (on camera): The family's response to the vanishing coral? Work harder. Hari (ph) and his sons cast lines deep into the ocean while Lydia

walks the reef flats in search of octopus.

These skills are passed between generations. Hari (ph) and Lydia are Basu (ph), and that name means "at struggle with the sea." It's hard to imagine

a people more connected to the water.

(SHOUTING)

SUTTER: When Basu (ph) children are born, their umbilical cords are placed in a shell like this one and that's tossed into the ocean as a sort of

offering. Right from birth, they are a part of the reef.

(LAUGHTER)

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

SUTTER: There's no fresh water, electricity, or school out here. There's no plan B. It's too expensive for Hari (ph) and Lydia to give their kids an

education off the island, so the kids must simply learn to fish and sail.

But climate change is putting all of this in jeopardy. Thousands of miles away, we continue to burn fossil fuels, which is heating up the oceans and

making them more acidic. That's killing the coral, which 275 million people depend upon for their survival. And here is where they feel it most.

UNIDENTIFIED FEMALE: We are as good as dead, thanks to the bleached coral. There wil be no more ocean (inaudible) of the coral turns white.

SUTTER: I told Lydia that scientists expect coral reefs worldwide to disappear by 2050 because of climate change. That's about when her children

will be grown. She looked back at me and said she's thinks of the white coral almost like curse, one sent from my people to her people.

Before we left, Lydia asked a question about our visit: when we went back home, we would teach people about Madagascar, she asked. Would we tell them

about the little kids and their toy boats, about how much they need the reef and this ocean. Will people to see the harm they're causing? I told

her, yes, but, honestly, I worry those of us causing the coral to vanish won't care enough to stop.

(END VIDEOTAPE)

LU STOUT: Now, we are killing the coral. It's affecting all those people. And biologists say

three-quarters of all species could disappear over the next couple of centuries if we don't make drastic changes now.

And tomorrow on News Stream we'll look at how bees are being wiped out. But if you want to watch a full report, do check out this special program.

It's called "Vanishing: The Sixth Mass Extinction," where we will explore the stories of five endangered species. It airs Tuesday 5:30 p.m. in

London, 12:30 p.m. in New York.

You're watching News Stream. And still to come, North Korea's provocative practice run. Kim Jong-un directs a simulated attack on South Korea's

presidential office. We'll have a report from Seoul next.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now, North Korea has carried out another round of war games, this time aimed at the heart of

the south. Now, later, Kim Jong-un directed drills that simulated an attack on the presidential office in Seoul. Paula Hancocks has more.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT: North Korea has been remarkably quiet as of late, but is that all about to change? North Korean state-run television

on Sunday out some fresh photos of a military drill targeting the Blue House, the mock-up of the Blue House. That`s the South Korean presidential

office.

North Korean special forces are seen parachuting down to the replica of the Blue House before storming it. Heavily camouflaged paratroopers the dragged

a figure out of the building, into a helicopter, which takes off. The anchor says they are capturing the enemies that need to be put on trial.

We then see heavy artillery which destroys the presidential office in a blaze of fire and smoke.

North Korean leader Kim Jong-un himself directed the exercise, according to the state-run media KCNA. And he`s quoted as saying, "Well done, the enemy

troops will have no space to hide themselves, far from taking any counteraction."

Now, these dramatic images clearly intended to provoke a response and they did. The South Korean Unification Ministry said that this was a childish

act, and also the Joint Chiefs of Staff said that if North Korea strikes, they will strike back and the leadership will suffer a fatal blow.

Now, it is worth mentioning the timing. It could well be that this drill happened on Saturday, although KCNA never gives a date of any events that

Kim Jong-un attends. But if it were Saturday, that is just one day after the impeachment of South Korean President Park Geun-hye by lawmakers. This

is a saga that North Korean media has been reporting on religiously.

Experts say, also, the relatively restrained behavior we've been seeing from North Korea recently, certainly in recent weeks, could be because of

the U.S. President-elect Donald Trump. Experts say that Kim Jong-un is unlikely to push too hard until he has a better idea of what he's up

against.

Paula Hancocks, CNN, Seoul.

(END VIDEOTAPE)

[08:40:32] LU STOUT: Now, Donald Trump appointing some businesspeople to key cabinet

positions. That has been sparking plenty of debate. And CNN's Anderson Cooper spoke with former U.S. Labor Secretary, Robert Reich, who says the

president-elect's choices won't help the American people.

But CNN political commentator Jeffrey Lorde says Trump deserves to be given a chance.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN ANCHOR: Secretary Reich, you hear the argument the president-elect is making, which is that putting successful businesspeople

in his cabinet is a smart thing to do, essentially because they prove they know how to run an organization, get results. To at lot people that sounds

sensible. Why isn't that in your view?

ROBERT REICH, FRM. U.S. LABOR SECRETARY: Well, it's not that simple, Anderson, because for the last 35 years at least half of the entire

American work force has not had a raise. And their jobs are becoming less and less secure. That's one reason they wanted to topple the establishment

and go with Donald Trump.

In other words, the status quo in terms of American business and American finance, what big corporations and what Wall Street has done has, in

effect, hurt average American workers. And by filling his cabinet with billionaires, with financiers from Wall Street, and also with big corporate

executives, he is simply replicating exactly the same economy that has shafted so many American workers to begin with. That's one of the ironies

of ironies.

ANDERSON: Jeffrey Lorde, what about that, that he's essentially, you know, sold himself as one thing but hiring all these people sends a different

message?

JEFFREY LORDE: I just find the fascination with the billionaires to be interesting. Nobody complains when a president stocks their cabinet with

lawyers or when they stock them -- The Washington Post reported that a full two-thirds of the Obama cabinet were Ivy League graduates. And of those, I

think there were 13 of them that were -- went to either Harvard or Yale.

Nobody blinks about that. But suddenly when it's billionaires, everybody's all concerned.

These are job creators. These are people who go and build businesses, and that's exactly the kind of thing. This is not, with all due respect and I

don't mean this as a personal slight to Secretary Reich, but they are not academics. They are not theorists. They are not lawyers. They are

business people. And i think the American people wanted to give them a shot.

(END VIDEO CLIP)

LU STOUT; All right, that is News Stream. I'm Kristie Lu Stout, but don't go anywhere. World Sport with Amanda Davies is next.

END