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Hong Kong Approaches 20th Anniversary of Handover; Philippines Military Battle ISIS Militants in Marawi; Theresa May Announces Deal with DUP. Aired 8-9a ET

Aired June 26, 2017 - 08:00   ET

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

[08:00:04] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout live from a blustery Hong Kong harbor front. Welcome to News Stream.

Now, we are days away from the 20th anniversary of the Hong Kong handover. And we're kicking off a special week looking at the challenges facing Hong

Kong.

Theresa May's government finally gets the support it needs, agreeing to a deal with a political party from Northern Ireland.

And, in the Philippines, gun battles with ISIS militants, the fight for the southern city of Marawi.

All week, we are live in front of Victoria harbor, as we approach the 20th anniversary of Hong Kong's handover to China. But this anniversary comes

at a tense time as China tightens its grip on the city it now controls, and activists grow bolder in their efforts to give the people of Hong Kong more

power.

And throughout the week, we're going to take a deeper look at the issues dividing the city, and we'll hear from the people of Hong Kong from

business leaders happy with tighter integration with China to young people who fear an uncertain future.

But first, we begin by looking at how this city became the unique place it is today.

(BEGIN VIDEOTAPE)

LU STOUT: It's not easy being Hong Kong. It is simultaneously China and not-China. It's a special administrative region, three words that

distinguish it and Macao from the rest of the country.

To understand why it has this status, let's rewind more than 175 years, way back to 1841 when the British took control of Hong Kong from the Chinese

during the first Opium War. Back then, it was just a handful of fishing villages, but in more than a century under British rule Hong Kong

transformed into an international financial powerhouse.

The British introduced western style banking, legal and education systems to Hong Kong. Hong Kongers also enjoy freedom of expression and freedom of

the press, liberties that don't exist in mainland China.

As China was embroiled in international conflicts and civil war, Hong Kong thrived.

But in 1984, when Britain negotiated to give control of the territory back to China. People feared life would dramatically change. Under the one

country, two systems principle, Beijing promised that Hong Kong would operate just as it had under British rule for 50 years.

July 1, 1997, the momentous return of Hong Kong from Britain to China. And at the handover ceremony, the people of Hong Kong were observers, watching

as their new flag, which was chosen for them, was raised on the lower pole than that of the bigger flag of the People's Republic of China.

Since around the time of the handover, there has been constant soul searching among the people on Hong Kong about their cultural identity,

their political future, and when this special administrative region would start to feel less special.

Critics say it's already started, pointing out China's refusal to grand Hong Kong free and fair elections for its top leader without Beijing

vetting the candidates, and that sparked the Umbrella Movement protests that paralyzed the city's central business district for more than three

months in 2014. Others will say life under Chinese rule has largely remained unchanged and that Hong Kong Inc has prospered along with the rise

of China.

Hong Kong still has an independent judiciary and a capitalist economy with its own financial system and currency. But many are worried that Beijing

is increasingly imposing itself on the city's affairs.

And then there's the question of what happens after China's promise of one country, two systems expires in 2047. Will Hong Kong be allowed to mostly

run its own affairs, or be ruled just like any other Chinese city.

20 years after the handover, Hong Kong is proudly Hong Kong, but divided between those who want more freedom and those who prefer not to mess with

the motherland.

(END VIDEOTAPE)

LU STOUT: Now the question that many in the city are asking will Hong Kong manage to stay unique as it has been for decades? And later this hour,

you'll hear my conversation with top city official turned democracy activist Anson Chan. The local icon gives us her take on what Hong Kong

needs to do to stay on top.

Now, turning now to breaking news this hour out of the UK. The Democratic Unionist Party of Northern Ireland has agreed to support a minority

Conservative government. Now, the parties have been in talks since Prime MinisterTheresa May lost her majority in a general election.

Let's go straight to CNN's Nic Robertson, our international diplomatic editor. He's been following this story for us from Downing Street. And

Nic, Theresa May has managed to do it, to secure support from the DUP, but at what cost?

[08:05:23] NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yeah, well, the cost was time as well as money. We'll get to the money in a minute,

but I mean the time, all that time, more than two weeks that it took to get this deal and then the sort of backwards forwards that some of this went

through, that also cost her a little bit of her credibility at a time when her credibility is already very low, even among their own politicians, so

that aside.

Yes, it costs money, well the DUP say they've signed up for some of the political things that were already, that the Conservative Party had in

their manifesto, that Theresa May didn't put forward in the queen's speech, meaning there were things that the Conservative Party, Theresa May, had

already put to one side, such as not changing pension -- there was a possible plan to cut pensions, or at least not link them to inflation.

That's not going to happen. There was a possible cut that could have happened to winter fuel subsidies for pensioners, that's not going to

happen.

But the big ticket item is the money that Northern Ireland the DUP has managed to secure for Northern Ireland for infrastructure, $1.8 billion.

This is how Arlene Foster put it.

(BEGIN VIDEO CLIP)

ARLENE FOSTER, DEMOCRATIC UNIONIST PARTY LEADER: Following our discussions, the Conservative Party has recognized the case for higher

funding in Northern Ireland given our unique history and indeed circumstances over recent decades.

We welcome this financial support of 1 billion pounds in the next two years as well as providing new flexibilities on almost 500 million pounds

previously committed to Northern Ireland.

(END VIDEO CLIP)

ROBERTSON: Now, one of the big things that the DUP feel that they've got here, and I talked to a senior DUP official about this earlier, he told me

that, look, there's a committee that's now been formed with senior Conservative Party officials, senior DUP officials, to monitor and talk

about how this new arrangement goes, how it's being implemented, to make sure both sides are happy. He said that they feel, the DUP feels, that

this is a way for them to have a voice, a strong voice, over Brexit negotiations speaking directly with senior Conservative officials.

So for the DUP, they think they've now got a much stronger voice than let's say Scotland might have or Wales might have in the Brexit negotiations.

LU STOUT: Got it. So a stronger voice for Brexit talks as a result of this alliance, but then there's that question that we've been asking since

the beginning of talks. What does this alliance with the DUP mean for the peace process in Northern Ireland?

ROBERTSON: Well, one of the most critical things about the peace process right now is the deadline later this week to get the power sharing

government up and running again. Arlene Foster said she was leaving here to go and work on that. And we've heard from one of the parties in

Northern Ireland talking about where the money that Arlene Foster has secured for Northern Ireland, for their education, for hospitals, et

cetera, where that sort of money for infrastructure might be best spent.

So, there's clearly some debate going on there.

But the big pressure now is to get that powersharing government up and running. And of course it was always going to be that the parties would

want to examine the deal that the DUP got with Theresa May before that they would sort of make their final commitments there.

I think that process still has some way to go. And until it is up and running you can't really say that the peace process is back on the footing

where everyone would like it to be. And of course, the critics would say right now, the DU -- because Theresa May and her government who are

supposed to be independent arbiters between the different sides in Northern Ireland to get those talks -- to get the government there reestablished,

that the British government is, in fact, on one side, that it is now effectively on the DUP's side. And that, as well, is going to be counter

productive to get that powersharing assembly back up and running, Kristie.

LU STOUT: All right, got it. Nic Robertson reporting live for us. Thank you, Nic.

Now, one of Islam's holiest celebrations is underway. And for a few brief hours, the city of Marawi, Philippines was peaceful. Now residents have

been living under heavy fighting between government forces and an ISIS affiliated militant group that took control last month here, you see people

attending prayers during the eight hour ceasefire.

Now, soldiers took guard outside the mosque. And just as soon as the ceasefire ended, the fighting picked up again. Ivan Watson is back in the

bureau in Hong Kong. He joins us now with more on this story.

And Ivan, not too long ago you were there when the war zone in the southern Philippines. And you saw this fight against ISIS. Now, a month-long

fight, what did you witness?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Well, we saw the island of Mindanaok, population more than 20 million people living under martial law,

this after these ISIS militants frankly surprised and stunned the security forces, the intelligence agencies, the government in the Philippines, by

seizing control of an entire city, that is the city of Marawi, which the military has been involved in a deadly battle to try to regain control of

that city.

This comes as an international coalition chips away at ISIS controlled territory in Iraq and Syria. No one really expected that ISIS would

establish this foothold in Southeast Asia.

(BEGIN VIDEOTAPE)

(CHANTING)

WATSON (voice-over): ISIS fighters battling street to street. Not in the Middle East, but for the first time, in southeast Asia.

(GUNFIRE)

WATSON: On May 23rd, these extremists launched a sudden lightning assault on the city of Marawi in the Philippines. They captured the city and

government weapons, burned a church, and murdered prisoners.

For months, the Philippine's military has struggled and failed to recapture the city, even though they bomb it daily from the sky.

(GUNFIRE)

WATSON: The government has also declared martial law here, setting up checkpoints across the island.

(on camera): The security forces are on the hunt. They're looking for dozens of suspected ISIS militants. And they're also searching for

prisoners who escaped from a jail that ISIS broke open during the first days of their attack.

(GUNFIRE) Ispilan Hapilon WATSON (voice-over): The capture of Marawi, a deadly coming out party for ISIS in this part of the world.

UNIDENTIFIED FEMALE: It has changed the picture of extremism in southeast Asia. We need to be more worried that people with combat experience and

leadership skills will be developing close to home, not in Syria and Iraq.

(SINGING)

WATSON: ISIS in the Philippines is a coalition of many Islamist insurgent groups that have long plagued this country.

(SHOUTING)

WATSON: But they've united for the very first time under the leadership of this man, Isnilon Hapilon.

(on camera): Tell me about him, what kind of a man is Hapilon?

UNIDENTIFIED MALE: Hapilon is very bold fighter.

WATSON (voice-over): This man is a former Islamist militant. Before renouncing violence and joining witness protection, he spent years in the

jungle fighting alongside the man now leading ISIS in the Philippines.

(on camera): Do you think he enjoy killing people?

UNIDENTIFIED MALE: Yes. When I spoke to him many years ago, he always think that killing non-Muslims satisfies Allah, makes Allah happy, and I was

shocked.

WATSON (voice-over): In the month-long battle in Marawi, ISIS have killed scores of Philippine soldiers and wounded hundreds more.

(GUNFIRE)

WATSON: The fighting has also triggered a humanitarian crisis. More than 330,000 people have fled their homes and hundreds of civilians are believed

to be trapped in the conflict zone.

Amid this suffering and destruction, ISIS have accomplished one clear goal, announcing their deadly presence in this part of the world.

(END VIDEOTAPE)

WATSON: Now, Kristie, the Philippines military gave a briefing today, and it announced that they believe that the top leaders of ISIS, including

Isnilon Hapilon may have escaped the siege and fled the city, even though fighters still continue to hold on to a number of neighborhoods in the town

center -- Kristie.

LU STOUT: Well, Ivan, and you were there when the Philippines President, Rodrigo Duterte visited a makeshift camp for those forced to flee the

violence. How was Duterte greeted there? With anger or with support?

WATSON: Oh, with excitement. I mean, this is the first Philippines president from the southern island of Mindanao, so he is kind of a local

hero, so people were terribly excited about his arrival. But that has led to some questions, certainly from within policy circles, how is it that the

first president from Mindanao did not see this threat, this jihadi threat, growing in -- on his island, essentially in his back yard. That is a

question that some counter terror experts have been asking.

And in his speech to some of these desperate people who have fled their homes now, and have been essentially homeless for a month, he said that he

was personally very disappointed and upset that this -- effectively this betrayal had taken place. And he argued that some local leaders had

perhaps allowed these militants to infiltrate that city, to bring in the enormous caches of weapons and ammunition that would then allow them to

fight for more than a month against the national military.

So, there was an accusatory tone there against some of the local leaders of that city and community -- Kristie.

[08:15:08] LU STOUT: Now, ISIS has gained a foothold in Asia in the southern Philippines. Ivan Watson reporting for us live. Thank you so

much, Ivan.

Now, in China, the search for survivors after a deadly landslide has been put on hold as rescue workers are warned that another landslide could

happen at any moment.

Now, this drone footage shows the extent of the destruction. The disaster struck a village in Sichuan Province, burying dozens of homes and killing

at least 10 people. But with more than 90 people still missing, that number is expected to rise.

The death toll from a large explosion is eastern Pakistan has now risen to at least 153. Now police say a tanker truck filled with oil veered off the

road and crashed on Sunday. People living in nearby villages started collecting fuel that was leaking from the tanker which then exploded.

Just hours from now, the U.S. President Donald Trump will host Indian Prime Minister Narendra Modi at the White House. Sensitive issues could come up,

like the U.S. worker visa program and the effort by both countries to boost manufacturing jobs at home.

And on climate change, President Trump has accused India of demanding billions of dollars in foreign aid for signing the Paris agreement. New

Delhi rejects that claim.

Now, Mr. Trump is finally talking about Russian attempts to influence the U.S. presidential election. And he is pointing the finger directly at his

predecessor Barack Obama, accusing him of ignoring intelligence warnings about meddling from the Kremlin.

Mr. Trump denies that any collusion took place between his campaign and Russian officials.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I just heard today for the first time that Obama knew about Russia a long time before the election and

he did nothing about it, but nobody wants to talk about that. The CIA gave him information on Russia a long time before they even -- you know, before

the election. And I hardly see it. It's an amazing thing.

To me, you know, in other words, the question is if he had the information why didn't he do something about it?

(END VIDEO CLIP)

LU STOUT: Now, the Washington Post reported the CIA gave then President Obama information about Putin's involvement and efforts to impact the vote.

But it says Obama's response was tempered in part because he didn't want to give the impression that he was trying to influence the U.S. election.

You're watching News Stream live from Hong Kong's harbor front. And when we come back, the political veteran who led the city's handover to China.

Hear what Anson Chan is saying about the state of freedom in the city.

And a raid in Los Angeles targeting a notorious gang uncovers a shocking network for human trafficking. The gang's connection to this crime just

ahead.

(COMMERCIAL BREAK)

LU STOUT: You're watching News Stream live in front of Hong Kong's famous skyline. And we'll be down here all week as we mark the 20th anniversary

of the handover of Hong Kong to China.

We'll look at the issues facing this vibrant city and speak to people about how their lives have changed since 1997.

Now, Anson Chan was the top official in the colonial government, as well as the early years of the post-handover administration. In this clip from

CNN's On China, I asked her how Hong Kong has changed in the past 20 years.

(BEGIN VIDEO CLIP)

ANSON CHAN, FORMER CHIEF SECRETARY OF HONG KONG: I don't think any one of us anticipated that 20 years down the road we would see the steady erosion

of one country, two systems, the undermining of Hong Kong's high degree of autonomy, the increasing interference from Beijing and from its liaison

office here in Hong Kong. And the lack of commitment on the part of both the SAR government and Beijing officials to honor the promises they made to

the people of Hong Kong and to the international community, also were disappointed that Britain, as the co-signatory to the joint declaration

does not seem to feel that it any longer has a moral and legal responsibility to see to it that China honors its promises.

And I very much hope that on the 1st of July when Xi Jinping, the president, comes to Hong Kong, that he will at long last provide a

reassuring message to Hong Kong people that it understands and is prepared to stand by the promises they solemnly made in the joint declaration and in

Hong Kongs' mini-constitution, the basic law.

LU STOUT: And if one country, two systems continues to erode, what will happen to Hong Kong and the international standing of the city?

CHAN: It's not just Hong Kong. Hong Kong continues to play a vital role as China's premier financial and services center, its largest offshore

Renminbi center, its economic vitality is due to the fact that we have the rule of law, an independent judiciary, the protection of basic rights and

freedoms, particularly important freedom of expression, academic freedom, freedom of the press. These are Hong Kong's strengths. And if we want to

continue to make the unique contribution to China's sustainable long-term economic growth, and to help our country, modernize and come into the 21st

Century and play an increasingly important leading role than we have to hang on to our strengths.

If we willingly stand by and see these strengths eroded than very quicly, Hong Kong will be marginalized. In my view, the rate of deterioration is

alarming. And we don't arrest -- we do not have to wait for 2047 for one country, two systems to exist only in name.

(END VIDEO CLIP)

LU STOUT: And that was part of my conversation with former Hong Kong chief secretary Anson Chan. And please stay tuned for more on this week's On

China as the people of Hong Kong, both young and old, tell us their hopes and fears about the city's future. It's airing this Friday 5:30 p.m. in

Hong Kong, 6:30 Tokyo, only on CNN.

Now, jailed Chinese dissident and Nobel Peace Laureate Liu Xiaobo has been granted medical parole. He was diagnosed with late stage liver cancer a

month ago. The 61-year-old is now being treated in Shenyan (ph) in northeastern China. He had been in and out of jail since the Tiananmen

Square crackdown in 1989. And he's now serving an 11 year prison sentence for inciting subversion of state power. He was convicted in 2009 after he

co-authored a manifesto calling for political reform of human rights in China.

It was in 2010 when he was still in prison when Liu was awarded the Nobel Peace Prize.

The CNN Freedom Project is committed to shining a spotlight on the horrors of modern-day slavery and helping to bring it to an end.

Now this week, how multinational gangs and drug traffickers are involved in human trafficking. CNN was there when officers carried out a raid

targeting the MS-13 gang in Los Angeles. And Kyung Lah tells us about their unexpected discovery.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN NATIONAL CORRESPONDENT: Hours before dawn, heavily armed ATF special agents load onto an armored truck, leaving in a vehicle of war,

heading to take down one of America's most violent street gangs.

CNN was the only television network on this May raid, the largest in Los Angeles history, targeting the core leadership of the violent MS- 13 street

gang. About 40 locations are all going to be hit at the same time, 4 a.m. local time. The target tonight, a dozen high ranking gang members.

UNIDENTIFIED MALE: Police!

LAH: The target, a store front, a suspected hub for MS-13. The notorious gang known for this brutal initiation of its members. Once in, gang members

savagely beat victims with bats and murder with machetes.

Mexican drug cartels hire MS-13 members as their muscle. This is what ATF agents anticipate on the other side of the door. But once inside, agents

find something else, men and women locked in a room in deplorable unsanitary conditions.

UNIDENTIFIED FEMALE: There was a locked room where several individuals were located. We believe that they may been -- may have been victims of human

trafficking.

LAH: Human trafficking, parts of this transnational gang connected to El Salvador. Agents say MS-13 routinely preys on undocumented immigrants,

sometimes forcing young women into prostitution.

Eric Harden is the ATF special agent in charge in Los Angeles.

[08:26:13] ERIC HARDEN, SPECIAL AGENT, ATF LOS ANGELES: I find all gangs here to be brutal and savage in one way or another with the human

trafficking and how they victimize and dominate females. That's all violent and very brutal.

LAH: Law enforcement took the victims in, trying to figure out how they ended up here, an unexpected part of a three-year investigation. The

overall raid netted dozens of suspects. ATF agents call it a success.

PATRICK, ATF AGENT: They're called the worst of the worst and, the most violent. And so arresting those people, it does make the neighborhood

safer, at least for a time.

LAH: And the ongoing battle on Los Angeles streets.

Kyung Lah, CNN, Los Angeles.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And up next, a showdown over health care in the U.S. Supporters of a Senate Republican bill are

scrambling for votes in their own party. Just ahead, why some lawmakers say they are not ready to sign on just yet.

And one of the biggest scandals in auto history has taken the ultimate toll on the company at its center. We've got the details coming up.

(COMMERCIAL BREAK)

(HEADLINES)

[08:25:50] LU STOUT: Now, Republicans in the U.S. Congress have been vowing for more than seven years that they would repeal Obama era health

care legislation, but even though they now control both congress and the White House, they are not over the finish line in fulfilling one of

President Trump's campaign pledges. Suzanne Malveaux has the latest effort to get the job done.

(BEGIN VIDEOTAPE)

TRUMP: I don't think they're that far off. You know, famous last words, right? But I think we're going to get there.

SUZANNE MALVEAUX, CNN CORRESPONDENT (voice-over): President Trump expressing confidence as Senate GOP leaders scramble to secure the 50 votes

needed to pass their healthcare bill.

TRUMP: Healthcare is a very complicated subject from the standpoint that you move it this way, and this group doesn't like it. You move it a little

bit over here -- you have a very narrow path. And honestly, nobody can be totally happy.

MALVEAUX: With all Democrats opposed to the legislation, Republicans can only afford to lose two votes. But there are currently five GOP senators

who say they can't support the bill as drafted.

PAUL: There's no way the Republican bill brings down premiums. Look, I've been in medicine 20 years. I'm 54 years old. Premiums have never gone down.

They're not going to go down after the Republican bill.

PRICE: The plan in its entirety will absolutely bring premiums down.

MALVEAUX: Trump senior advisor Kellyanne Conway says the president is working the phones trying to drum up support, although Senate Majority Whip

John Cornyn told reporters this weekend, "We're trying to hold him back a little bit."

Complicating the president's effort, his acknowledgment that he called the House healthcare bill "mean."

TRUMP: That was my term, because I want to see -- I want to see -- and I speak from the heart -- that's what I want to see. I want to see a bill

with heart.

MALVEAUX: The president contradicting his own press secretary, Sean Spicer, and House speaker Paul Ryan.

REP. PAUL RYAN (R-WI), SPEAKER OF THE HOUSE: I think that was some kind of a misinterpretation of -- of a private meeting.

MALVEAUX: A major point of contention: the 11 million Americans insured under Obamacare's Medicaid expansion, which faces deep cuts under the

Senate bill, despite the president's promise not to cut the program.

TRUMP: Save Medicare, Medicare and Social Security without cuts.

GOV. JOHN KASICH (R), OHIO: Over a ten-year period Medicaid funding will be significantly curtailed, and not accompanied at this point with the kind of

flexibility we need.

MALVEAUX: Kellyanne Conway insisting otherwise.

KELLYANNE CONWAY, COUNSELOR TO DONALD TRUMP: These are not cuts to Medicaid, George. This slows the rate for the future, and it allows

governors more flexibility with Medicaid dollars.

SEN. SUSAN COLLINS (R), MAINE: I respectfully disagree with her analysis. I'm very concerned about the cost of insurance for older people with

serious chronic illnesses.

MALVEAUX: It's a race against the clock, with Congress going on recess this Friday. Will they vote before then?

SEN. RON JOHNSON (R), WISCONSIN: I would like to delay the thing. There's no way we should be voting on this next week, no way.

(END VIDEOTAPE)

LU STOUT: And that was Suzanne Malveaux reporting there.

Now British authorities are getting some startling results as they test hundreds of apartment buildings following that catastrophic fire in London.

Now, 60 tall buildings across the country have been tested for fire safety. All 60 were declared unsafe. At least 4,000 people have been moved from

tower blocs deemed to be at risk. And those refusing to go are being told that they must leave to prevent another tragedy.

(BEGIN VIDEO CLIP)

SADIQ KHAN, MAYOR OF LONDON: One of the reasons why I've said this fire was preventable is because for too long corners have been cut. For too

long in the interests of saving money, I think things that could have been done haven't been. And I think one of the things that we need to make sure

is learn from this fire, but also the public inquiry is overdue to make sure out buildings are as safe they can be.

Clearly they aren't. And we need to make sure (inaudible) health and safety, negatives terms, rather than talking about cutting regulation, red

tape. We recognize that these regulations are there for a good reason.

(END VIDEO CLIP)

LU STOUT: London Mayor Sadiq Khan there.

Now passengers on an Air Asia X-flight (ph) survived a very bumpy ride.

An apparent engine issue forced the plane to return to Australia just over an hour into its flight to Malaysia. One passenger told CNN he heard a

loud bang and the plane began to rattle violently. It lasted for nearly two hours. Thankfully, the flight landed safely back in Perth.

Now, the Japanese air bag maker Takata has filed for bankruptcy. Now, the company has been involved in one of the worst safety scandals in auto

history. Its faulty air bags have been linked to 11 deaths in the U.S. and several others elsewhere. Will Ripley tells us how the company got to this

point.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: A stunning fall for Takata, once a titan of the auto parts industry, undone in one of the worst auto

safety scandals ever. Exploding airbags, blamed for at least 11 deaths in the U.S., more than 180 injuries, putting tens of millions of drivers at

risk.

In Tokyo, disgraced company leadership announcing a more than 1.5 billion dollar bankruptcy deal. Takata selling off most of its business to a U.S.-

based rival.

"I apologize deeply from the bottom of my heart," says Takata's embattled CEO, vowing to resign once the deal is done. The company his family

founded more than 80 years ago on the verge of collapse, stocks plunging, key talent leaving. The bankruptcy deal aims to keep factories open and

tens of thousands of people employed.

The unprecedented global recall affects about 100 million airbag inflaters, tens of millions are still on the road right now. They can explode with

too much force, becoming jagged metal projectiles.

I saw the danger firsthand two years ago at this Japanese scrap yard.

"We're just lucky our staff wasn't hurt," the owner told me after a series of Takata airbag explosions.

Workers say the force of one of the explosions was so powerful, it actually shot a piece of metal up 10 meters, about 33 feet, leaving that hole in the

ceiling.

The Japanese government calling Takata's bankruptcy unavoidable. The company owes billions of dollars, including a massive 1 billion dollar fine

in the U.S. Takata admitted to manipulating key airbag information for years for one of the auto industries oldest and most successful suppliers.

This is the end of the road.

Will Ripley, CNN, Tokyo.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream live from Hong Kong's harbor front. And still to come, what makes this city unique to those who live here?

Hear from this police officer who made history as a trailblazer.

(COMMERCIAL BREAK)

[08:40:02] LU STOUT: Welcome back.

Now, in this city with a population of more than 7 million, being a Hong Konger means a lot of things to a lot of people, especially now that it's

20 years since the handover. And all this week, citizens from various walks of life are telling us what makes their home special to them. And

today, we hear from them the city's first ethnic minority man to become a police inspector since the handover.

(BEGIN VIDEO CLIP)

ABDUL FAISAL, HONG KONG POLICE INSPECTOR: : For me, being a Hong Konger, this means being able to contribute to our society. I'm Abdul Faisel. I'm

police inspector of Hong Kong. Since I was born in Hong Kong, my father is Pakistani and my mother is Chinese.

I can speak fluent Cantonese, English, Mandarin, and a little bit, only a little bit, Urdu language.

Study in the local school with the local children, when I was young, one times I go to play at a park and our children (inaudible) with some

discriminatory (inaudible) and a police officer was patrolling and he heard that. And he stopped the children. That's why I wanted to become a police

officer, because I want to take up this role and prove that even though I am an ethnic minority in Hong Kong, I also can contribute to our society.

I still remember the first time I stepped out of the police station and the citizen looked at me in shock, because of my face. Oh, there is an ethnic

minority become a police officer? It's unbelievable. OK. And then I communicate with them in fluent Cantonese. They were surprised.

Hong Kong is a very great city, because every people in different nationalities can have the opportunity in Hong Kong just like me.

If you want to achieve it, go and fight for it.

Being a Hong Konger is fantastic. I'm so proud to be a citizen of Hong Kong.

(END VIDEOTAPE)

LU STOUT: He's a Hong Konger. And that is News Stream. I'm Kristie Lu Stout. And I'll e live from the harbor front all week as we approach the

20th anniversary of the handover. And tomorrow, we'll focus on one of the biggest problems facing young people here: the lack of affordable housing.

Again, that's tomorrow on News Stream.

But don't go anywhere, World Sport with Christina Macfarlane is next.

END