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China's President Arrives for First Visit in Hong Kong; Apple's iPhone Turns 10; Trump's Travel Ban Goes Into Effect; Battle for Mosul Moves into Final Stage. 08:00a-09:00a ET

Aired June 29, 2017 - 08:00   ET

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

[08:00:41] KRISTIE LU STOUT, HOST: Welcome to News Stream. I'm Kristie Lu Stout live at the Hong Kong harbor front as we approach the 20th

anniversary of the handover to China.

Now, China's president arrives for his first trip to Hong Kong. And restates his commitment to one country, two systems. The principle that

gives the city more autonomy and freedom than the rest of China. And days before she takes office to sit down with the next chief executive to ask

Carrie Lam whether she will stand up for the people of Hong Kong to Beijing.

Also today, we will mark another notable anniversary. We'll look at the impact of the iPhone 10 years after it first went on sale.

In a landmark visit to Hong Kong, Chinese President Xi Jinping is underscoring his commitment to one country, two systems. On July 1, the

city marks 20 years since Britain handed over the territory to China. But the mood here in Hong Kong is divided. While huge banners welcome hang

over the highway, protests have been planned. But it is doubtful that the protesters will actually be able to get close to the Chinese president. He

used to spend very little time anywhere near the public.

And across the harbor behind me, one of the city's most vibrant districts - - Wanchai -- is on partial lockdown.

This is the Chinese president's first official visit to Hong Kong. In his five years as the leader of China, Xi Jinping has visited nearly every

corner of the globe. He has been to the United States, Venezuela, Tanzania, and yet this is the first time he has visited Hong Kong as

president.

In 2014, he even made a trip next door visiting China's other special administrative region: the former Portuguese colony of Macao.

Now, Ivan Watson is now speaking to people on the streets. He joins us now. And Ivan, Xi Jinping finally here in Hong Kong, his first visit since

becoming president of China. How has he been received?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Well, here in this part of Hong Kong we're with pretty much an unofficial welcoming party for the

Chinese leader, Kristie. As you can see, people lining the streets here with the flag of Hong Kong and of course the flag of China as well. And

playing patriotic tunes as well.

I asked one woman why she likes Xi Jinping. She said, I'm Chinese, so of course I like the Chinese leader.

Now, not everybody in Hong Kong feels that way. If you, just in my kind of informal survey of many Hong Kongers, when I've asked people, hey, how do

you feel on this 20th anniversary of the handover, how do you feel about the visit of the Chinese leader, almost everybody I've spoken to outside of

crowds like this has kind of shrugged their shoulders with ambivalence, if not some degree of ill-will.

Now, where could that be coming from? I think part of it may be due to demographics. If you look at a poll that came out earlier this year, it

said that among 18 to 29 year olds, only 3 percent of them identified themselves as Chinese, versus about 10 years before that when that number

was around 40 percent.

So, something is happening among some young people of this city, of this former British colony, who do not feel a direct connection to Mainland

China that many of the people here and across the street feel.

These people, of course, standing out in the heat and the humidity to try to welcome the Chinese leader -- Kristie.

LU STOUT: Ivan, I wanted to ask you about the extent of the security lockdown in the city. Just how much of Wanchai, the central district, some

would argue the heat of Hong Kong has been blocked off from the public during this visit.

WATSON: Well, OK, I'm going to ask Mark to pan around to show some of the police over here. This is just a fraction of the police presence here,

which according to local newspaper reports, numbers around 11,000 police deployed.

So, in the streets around this central part of Hong Kong, there is a massive police presence, barriers as well that closed down some major

coastal arteries, and part of the concern here is clearly to keep any possible signs of dissent under control.

Now, last night we saw a small group of demonstrators hold a protest in Golden Bauhinia Square, and they were detained after several hours by

police and are still in detention. There are plans for protests from some of the opposition groups who are very worried about what they see as the

erosion of democratic freedoms in this city. But for now we're not seeing any signs of that, instead what we're seeing are these kind of carefully

organized and very polite and obedient shows of respect and admiration for the Chinese leader Xi Jinping.

[08:05:58] 0LU STOUT: Xi Jinping is here in Hong Kong. He arrived today. And he's here to mark 20 years since the handover, or the return, as its

known in China, of Hong Kong to Beijing, also to witness the swearing in ceremony of the new leader.

Could you tell us more about what's on his agenda for the next few days? What will Xi Jinping do tomorrow?

WATSON: Well, I mean, part of why he's here is because there is a handover of the city government here. So, the former chief executive, the top

official in Hong Kong CY Leung, is handing off to Carrie Lam who is the chief executive-elect.

There will also be a review of the People's Liberation Army barracks here. And his wife, for example, visited a kindergarten here in Hong Kong.

Now, in his arrival remarks at the airport, Xi Jinping said that this is a very important anniversary for the entire country. And he also invoked one

country, two systems. Why is that so important? Well, Hong Kong is not like any other city in China, it's a specially administered region and it

enjoys a certain degree of autonomy. And it is inherited some of the democratic freedoms of the former British colonial system that you don't

see in other parts of China.

This is the only city in China where people can stage freely protests against the government where there is more or less a free press that can

criticize the government without fear of censorship and part of why there is some ambivalence and criticism, certainly from opposition groups, is the

perception that Beijing is increasingly meddling in the autonomy and freedoms that this city enjoys that were supposed to be preserved in Hong

Kong for a period of some 50 years -- Kristie.

LU STOUT: Ivan Watson reporting live on this very highly symbolic visit of Xi Jinping in Hong Kong. Thank you, Ivan.

Now, one of Hong Kong's biggest concerns is that when its new chief executive, Carrie Lam, is sworn in, that she will enact Article 23, a

controversial national security law. Activists worry that the law could criminalize criticism of the government. And it is a sensitive topic

because the people of Hong Kong enjoy rights not possible in Mainland China, like the freedom to protest.

A plan to introduce the law in 2003 triggered one of the biggest protests in Hong Kong history. Organizers said half a million people showed up, and

it forced the government to delay plans to pass it. But there are serious concerns that it could return to the table.

Last week, I sat down with incoming chief executive Carrie Lam. And I asked whether Article 23 is a priority for her.

(BEGIN VIDEO CLIP)

CARRIE LAM, HONG KONG CHIEF EXECUTIVE-ELECT: I think this is nothing wrong. All the countries need to protect their country and protect their

countrymen.

As far as my position is concerned, I said that of course this is a constitutional duty, and we all want national security. But having gone

through the last exercise, which has created such a major controversy in Hong Kong, my duty as the chief executive is to create conditions conducive

to restarting this process.

LU STOUT: But with Article 23, would you be able to guarantee freedom of speech in Hong Kong, especially groups that are openly critical of Beijing?

LAM: I have to, because that freedom and human rights and so on also enshrined in the basic law. To do one thing in accordance with the basic

law, but then running the risk of bridging another provision in the basic law is not something that I would go for.

LU STOUT: So, you would guarantee the freedom of speech, freedom of assembly of, let's say, localists, people who want independence from China.

LAM: At the end of the day, in drafting a legislation, we have to ensure that while protecting the country and national security, we could still

safeguard and uphold all those personal freedoms and rights that have been guaranteed in the basic law.

LU STOUT: Will you be the leader who will go to Beijing and say, this is what the people of Hong Kong want and we can do it.

LAM: Oh, definitely, because I -- I will be this most important bridge of the China communication between the Hong Kong special administrative region

and the Central People's Government and to perform this row as a bridge.

I have to be honest, I have to tell the central authorities to feelings and sentiments of Hong Kong people. And if there are things that I feel that

they are things that we could handle, and they are totally in line with the provisions in a basic law, then Hong Kong should be given a free hand.

LU STOUT: And Beijing will listen to you?

LAM: Well, I hope so. So far, I think the leaders have been very supportive and have placed trust -- it may because, as you know, although I

was elected by the election committee, I had to be appointed by the central people's government.

LU STOUT: A question about the youth of Hong Kong, or one survey saying up to 60 percent of Hong Kongers want to leave because of brain drain. How

can you convince them to stay?

LAM: I want to give them hope. So, one of my tasks in providing more opportunities to young people is to young people is to diversify Hong

Kong's economy.

Another sort of cause for grievances, of course, are high property prices.

LU STOUT: Yeah, and property prices are certainly very, very high in Hong Kong. I mean, I saw something online, it was for half a million U.S.

dollar apartment and what it gets you is a tiny space you can barely park your car into it.

LAM: That's quite beyond affordability of many of the households.

LU STOUT: Is that a failure of the government that it's gotten to this point?

LAM: Well, in a way you can say yes, because as a result of the Asian financial crisis and all these major drop in property prices, a lot of

private equity -- negative equity cases for those who had to mortgage the government in those days have repositioned the housing policy, and has

ceased for awhile the production of land to meet the housing needs.

In this term of the government, under the leadership of the incumbent chief executive we are trying to catch up. But there's still quite a lot of

catching up work to do.

LU SOTUT: In the eyes of Hong Kongers, and I just used the term Hong Kongers -- many people here call themselves Hong Kongers. They don't call

themselves Chinese. Do you feel that that's a positive defining characteristic of Hong Kong or could that cause a greater rift between

China and Hong Kong.

LAM: I don't think that it's a major problem, because, well, just like my parents came from Shanghai, so when I was young people called me a

Shanghainese. So -- but that doesn't mean that we are not Chinese, that doesn't mean that we don't have that sense of national spirit and national

pride and so on

LU STOUT: Carrie Lam, do you consider yourself a Hong Konger first?

LAM: It's not a matter of first or second, I am a Hong Kong person -- I'm a Chinese person living -- growing up and going to contribute to Hong

Kong's continued success.

(END VIDEOTAPE)

LU STOUT: That was part of my conversation with the incoming Hong Kong chief executive Carrie Lam. And we will have much more on the anniversary

of the handover throughout the show today.

Now, turning now to the U.S. where parts of Donald Trump's controversial travel ban are about to take effect.

The controversial order had been stalled in the courts for months, but earlier this week the U.S. Supreme Court took action, allowing it to be

partially implemented.

Now, CNN U.S. justice reporter Laura Jarrett joins me now. She's on the story for us. And Laura, the U.S. travel ban begins today, is it going to

cause more travel chaos for airplane travelers?

LAURA JARRETT, CNN JUSTICE CORRESPONDENT: Well, the travel chaos remains to be seen, Kristie, but after months of winding its way through the

courts, portions of the president's revised travel ban will go into effect later today in the U.S.

This, of course, after the Supreme Court ruled and upheld parts of the ban earlier this week finding that people from six Muslim majority countries

must prove a so-called bona fide connection to a person or entity living in the U.S.

And this morning, we're learning more from sources about how exactly the U.S. government is defining these key relationships.

(BEGIN VIDEOTAPE)

JARRETT: The Trump administration issuing new guidelines for visa applicants from six Muslim majority countries impacted by President Trump's

travel ban. A senior administration official telling CNN that applicants must prove their relationship with a parent, spouse, child, son-in-law,

daughter-in-law, or a sibling already in the U.S. to be eligible.

Other extended family members including grandparents and eastern fiances, left off the list. Any applicant unable to demonstrate this close

relationship traveling from those six countries will be banned for 90 days. The State Department criteria sent to all embassies and consulates late

Wednesday, also applies to all refugees currently awaiting approval for admission to the U.S. Visas that have already approved will not be revoked,

but immigration advocates worry that we could see chaos again at airports, like these protests in January when the president's first travel ban went

into effect. This as the U.S. agency tightens aviation security for overseas airports with direct flights to the U.S.

JOHN KELLY, HOMELAND SECURITY SECRETARY: We cannot play international whack-a-mole with each new threat.

JARRETT: Homeland Security Secretary John Kelly announcing new measures that will include greater scrutiny of passengers, canines that detect

explosive, and enhanced screening of electronic devices. The DHS choosing not to implement an all-out laptop ban but leaving the option on the table.

KELLY: Make no mistake, our enemies are constantly finding new methods for disguising explosive, recruiting insiders, and hijacking aircraft.

JARRETT: Secretary Kelly warning that there will be consequences if airlines refuse to comply.

KELLY: Those who choose not to cooperate could be subject to other restrictions, including a ban on electronic devices on aircraft, or even a

suspension of their flights into the United States.

(END VIDEOTAPE)

JARRETT: Now, Secretary Kelly refused to detail all of the new requirements for security reasons, noting that the screening guidelines

will be both seen and unseen here, and phased in over time.

The travel ban, guidelines, on the other hand, will go into effect later today in the U.S., Kristie.

LU STOUT: Yeah, it all begins today. Laura Jarrett reporting live for us. Thank you, Laura.

And now to the Vatican where top adviser to Pope Francis is denying allegations that he committed sexual assault. Cardinal George Pell is

facing charges in his home country of Australia. And police have not released specific details, but do confirm that there are multiple

complainants.

Pell will return to Australia for his court appearance next month. He says the very idea of sexual abuse is abhorrent to him.

In the past, Pell has also denied covering up any abuse committed by a priest when he served as the archbishop of Melbourne. Anna Coren has more.

(BEGIN VIDEOTAPE)

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: For decades, allegations of covering up sexual abuse within the Australian Catholic Church had dogged

him, but it never stopped George Pell from rising through the ranks to become one of The Vatican's most powerful.

But now the 76-year-old cardinal himself has been charged with multiple sexual assault offenses, the result of a two-year investigation, sending

shockwaves through the Vatican and around the world, police offering few details.

SHANE PATTON, VICTORIA DEPUTY POLICE COMMISSIONER: Today, Victoria police have charged Cardinal George Pell with historical sexual assault offenses.

Cardinal Pell has been charged on summons, and he's required to appear at the Melbourne magistrate's court on the 18th of July.

Cardinal Pell is facing multiple charges in respect to historic sexual offenses, and there are multiple complainants.

COREN: Cardinal Pell is one of Pope Francis's top advisers. As the secretariat of the economy, he is in charge of the Vatican's finances.

He was also hand-picked to sit on the pope's eight member advisory council, set up to address issues, including sexual abuse within the church.

Reading a statement from The Vatican just hours after the charges were laid, Cardinal Pell says he has endured a relentless character

assassination and that he is innocent.

CARIDINAL GEORGE PELL: I'm looking forward, finally, to having my day in court. I'm innocent of these charges. They are false. The whole idea of

sexual abuse is abhorrent to me.

COREN: Last year, Cardinal Pell refused to return to Australia to testify before a royal commission into the church's mishandling of sexual abuse.

PELL: I regret that I didn't do more at that stage.

COREN: Instead, he gave four days of testimony from a hotel in Rome, his doctors claiming he was too ill to fly. Survivors or sexual abuse at the

hands of clergy overseen by Pell were angered by his answers that they felt showed a lack of understanding and empathy.

This will be a monumental test for Pope Francis who, up until now, has stood by the cardinal.

There is no extradition treaty between Australia and the Vatican, however the pope has given Cardinal Pell a leave of absence to return to Australia

to defend himself.

Anna Coren, CNN, Hong Kong.

(END VIDEOTAPE)

LU STOUT: Now, Hong Kong is filled with passionate political activists. And up next, meet one of the city's political veterans. She directly

challenged British Prime Minister Margaret Thatcher in the 1980s to oppose handing Hong Kong over to China.

(COMMERCIAL BREAK)

[08:21:42] LU STOUT: Welcome back. You're watching News Stream live from Hong Kong's harbor front as we approach the 20th anniversary of the

handover to China.

Emily Lau is a former journalist and a political veteran of Hong Kong. In 1984, she famously challenged British Prime Minister Margaret Thatcher on

her plan to cede Hong Kong to China. Now in this clip from CNN's On China, I asked whether Hong Kongers felt the handover was decided by people who

did not represent them.

(BEGIN VIDEOTAPE)

EMILY LAU, FORMER JOURNALIST: Well, there's no doubt about that. Everybody knew it, because the negotiations on our future were just between

the British and the Chinese, secret negotiations in which the Hong Kong people play no part.

And we could not play any part, because there were no elections, so it's very sad.

And that's why I blame the British. They ran Hong Kong for one-and-a-half centuries. All along, they refused to allow Hong Kong to have elections,

because if we did our representatives would say, wait, come on, we will have a say.

LU STOUT: There were those declassified documents that came out a couple of years ago that showed that Margaret Thatcher seemed that she was more

concerned with economic and financial stability of Hong Kong than the fate of who would be soon to be former colonial subjects.

LAU: All along the Hong Kong people knew that to the British government, all they care about is trade, economic activities, and the well-being of

Hong Kong people are of secondary importance.

But -- but having said that, I think what we enjoy right now, the freedoms, the rule of law, independence of the judiciary, that we still have -- some

people are saying it's being badly undermined, which is also true, but these are all British legacy, that's why.

And these things which set Hong Kong apart from Mainland China, because people there do not enjoy the freedoms that we enjoy. And we have a

fearlessly independent judiciary. And many people still have faith in the rule of law, and in our judges.

But you can't say the same thing about Mainland China. And I speak as someone who has not been allowed to travel to Mainland China for more than

two decades, you know, for some time in the legislative council that I used to belong, at least seven or eight members have been banned by the Beijing

government for more than 20 years.

So, there is one country, two systems, because I'm allowed here, but not allowed in the Mainland.

(END VIDEOTAPE)

LU STOUT: That was part of my conversation with Hong Kong Democratic Party chairwoman Emily Lau. And stay tuned for more on this week's On China as

the people of Hong Kong tell us their hopes and their fears about the city's future. It airs this Friday at 5:30 p.m. in Hong Kong, 10:30 a.m.

in London, only on CNN.

North Korea is expected to dominate talks when Donald Trump meets the South Korean president in a few hours. They both want to end Pyongyang's nuclear

program, but have very different ideas about how to get there. Paula Hancocks has the latest from Seoul.

(BEGIN VIDEOTAPE)

(SHOUTING)

PAUAL HANCOCKS, CNN INTERNATIONAL CORRESPONDENT (voice-over): North Korean athletes showcase their taekwondo skills in South Korea, a sporting

connection where others are lacking. South Korea President Moon Jae-in wants to change that, meeting the sportsman at the taekwondo world

championship last weekend and the North Korean member of the International Olympics Committee. He calls for a joint North and South Korean team at the

upcoming Olympics.

"I want to feel those emotions again," he said, "that I felt when the world cheered, as athletes from North and South Korea marched together during the

2000 Sydney Olympics."

A clear pro-engagement stance ahead of the summit with U.S. President Donald Trump.

Mr. Trump has made contradictory statements on North Korea, saying he would be willing to meet leader, Kim Jong-Un, but at the same time, saying a pre-

emptive strike is still on the table.

Experts say President Moon needs to make a personal connection with his U.S. counterpart.

JOHN DELURY, YONSEI UNIVERSITY: My sense from the South Korean side is they're more focused on the interpersonal dimension and trying to get a

good summit, trying to get a read of Donald Trump as I think all world leaders are.

HANCOCKS: The shared problem of North Koreas nuclear and missile program provides some common ground.

JOEL WITT, 38NORTH: You also have to somehow figure out how to inject into the mix a discussion of the substance because the challenges facing us from

North Korea can't be put off.

HANCOCKS: And then there's THAAD, the U.S. missile defense system, being deployed to South Korea, which many simply don't want, including, in the

past, President Moon, although he's since softened his tone.

(SHOUTING)

HANCOCKS: A recent protest outside the U.S. embassy had a distinct anti- American tone.

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

HANCOCKS: This protester says, "I want President Moon to tell President Trump that THAAD it is not beneficial for the peace of South Korea and

people are furious about being controlled by the U.S."

A recent Pew Research Center survey found a sharp fall in confidence in the United States since President Trump took power. And that's being felt

particularly acutely here in South Korea from 88 percent who felt confident at the end of President Obama's term to just 17 percent under President

Trump.

Paula Hancocks, CNN, Seoul.

(END VIDEOTAPE)

LU STOUT: Now, the battle against ISIS in Mosul is beginning to enter its final stages. We'll bring you the latest from inside the city.

(COMMERCIAL BREAK)

(HEADLINES)

[08:30:52] LU STOUT: Now, the battle to recapture Mosul from ISIS is moving into its final stages. Iraqi troops say that they're on the verge

of driving out the last of the terrorist forces from the city.

Nick Paton Walsh takes us to the heart of the fight.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): The end is near for ISIS. You can just feel it. And normal life is springing

back out of these pancaked buildings. Yet, turn one corner in Mosul towards its old city and the nihilism of the very final chapter in this war

emerges.

Liberation leads little life behind. Bodies still where they fell in the scorching heat.

Senior commanders take us in in the calm before their final storm to wipe ISIS off the map.

(on camera): And how many more days do you think ISIS have in Mosul and in Iraq?

UNIDENTIFIED MALE: Some days.

WALSH: Three, four?

(voice-over): Brigadier General Asadi (ph) beckons us on to see their prize. These are the last rooftops ISIS own in Mosul, barely hundreds of

meters to go now. In the distant left, the river bank marking where ISIS's world ends.

And in the dust, the ruins of the sacred al-Nuri Mosque. ISIS blew it up, rather than let it to be captured. A terrifying omen for civilians held

underground as human shields here.

(on camera): Well, that mosque has always been a distant target for Iraqi forces, and now, they literally are able to see it from neighboring

rooftops.

(voice-over): U.S. trained Major Salam (ph) took us into Mosul eight months ago, and now he's here to see the end.

(on camera): We're at the beginning. And now, we're at the end of it all.

UNIDENTIFIED MALE: Yes.

WALSH: So, what are we seeing on the screen?

UNIDENTIFIED MALE: This digital camera that we try to recon the enemy, where are they located, and we try to find where are the civilians also.

Nobody is sure exactly how many civilians there are. They located in so many different houses. Many families in one house.

WALSH: Are you getting enough help from the Americans now? Because when we first met eight months you...

UNIDENTIFIED MALE: More than enough. I am so happy for all the support from Australian side, from American side.

WALSH: There is the occasional stench of death here from the bodies of ISIS fighters like this one below me here left behind and also at times an eerie

silence when the gunfire subsides.

But it's in these dense streets that you can really feel how hard the fight against ISIS has been in these final moments, but also, too, how many few

meters they are away from kicking the terrorist group out of Mosul, but also out of Iraq entirely.

(voice-over): Nick Paton Walsh, CNN, Mosul, Iraq.

(END VIDEOTAPE)

LU STOUT: Now, ISIS maybe losing ground in Iraq, but appears to be gaining a foothold in the Philippines. Now, government forces there are fighting

ISIS-linked militants in the city of Marawi. Ivan Watson spoke exclusively with the former extremist about why he left a group that is now aligned

with ISIS.

(BEGIN VIDEOTAPE)

WATSON: What was the attraction in those days to join an armed militant group?

ABU JIHAD, FORMER JIHADIST: To us it was a noble obligation to take part in jihad.

(TEXT): Abu Jihad is from the Philippines Island of Basilan. For more than a decade, he was a member of Abu Sayyaf, the Philippines' most

notorious extremist group.

WATSON: What was the justification at that time for killing people?

ABU JIHAD: At first we thought that the organization is for religious purpose. It is for the propagation of Islamic teachings. It is to

establish the sharia. We never thought that the group would resort to kidnappings, bombings and many other atrocities.

(TEXT): Over the past quarter century, Abu Sayyaf kidnapped scores of people. The militants ransomed (inaudilbe) some victims. Some were

(inaudible).

ABU JIHAD: Especially at the start of the group, the foreign connection, foreign support is very important.

(TEXT): Abu Sayyaf allied itself with al Qaeda in the 1990s.

Among those sent to train Abu Sayyaf, al Qaeda member and 9/11 mastermind Khalid Sheikh Mohammed.

WATSON: What kind of things did these men teach you?

ABU JIHAD: They provided us with their experience in Afghanistan. How to conduct ambush and what are the things needed during warfare.

WATSON: Did you use the islands and boats to smuggle people and money and weapons?

ABU JIHAD: Yes. It was very easy for us by using the process of speed boats that we have they can easily transport firearms and money very

easily.

WATSON: How much money would be on a boat?

ABU JIHAD: Millions.

This has never happened before, that militant groups in the Philppines have come together.

(TEXT): Abu Jihad was arrested and jailed in 2002. He has since renounced violence.

WATSON: Do you feel any guilt about your time with the militant groups?

ABU JIHAD: Yes. Yes. I resented having joined this kind of organization, having known people who brought this destruction.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

LU STOUT: Welcome back. All week, we are live in Victoria Harbor to mark the 20th anniversary of the handover of Hong Kong to China, but we'd also

like to mark another significant anniversary. Now, 10 years ago today the iPhone went on sale. It wasn't the first smartphone, but it was the first

truly successful one and kick started a revolution in mobile computing.

Now, think of all the things that are now possible because of smartphones: enormous businesses like Uber have emerged.

While the rapid development of mobile technology has lead to advances in other electronics like drones and virtual reality. But one analyst says

one of the most impressive facts of the iPhone is something it's missing: malware. Security analyst Mikka Hypponen said this on Twitter, quote, "the

iPhone is 10 years old today. After 10 years, not a single serious malware case. It's not just luck, we need to congratulate Apple on this," unquote.

Now, one of the curious things about the iPhone is that it didn't start out a phone at all. Now Brian Merchant wrote The One Device. It's a book that

traces the origins of the iPhone. And he explains how the project began at Apple.

(BEGIN VIDEO CLIP)

BRIAN MERCHANT, AUTHOR: Long before there was any mention of an iPhone, or any desire for Apple to build a phone, the core principles of the iPhone

started coming together deep in an abandoned user testing lab inside Apple's HQ in Cupertino.

So, it began as just this freewheeling series of experiments that designers, engineers, and programmers were really just trying to figure out

this core question, and that's how do we want to use our devices now that computers are getting faster, the internet is getting better, media is

getting richer, what are we going to want to do with all this stuff besides just click on it and use a keyboard.

So, these guys really thinking hard about what the future is. And to them it looked an awful look like the future was going to be direct

manipulation, that's just reaching out and touching data, touching pictures.

(END VIDEO CLIP)

[08:40:06] LU STOUT: Apple has now sold over 1 billion iPhones, that makes it the most successful phone of all-time. But the smartphone fills so many

roles that analyst Horace Sideo (ph) argues that it's much more than that. It is also the best-selling camera of all-time, the best selling video

screen, and the best-selling computer.

But its impact can be seen in a farm more simple way: just take a moment to look around you right now. Now chances are someone nearby is staring down

at their smartphone.

Now, let's end the show by returning to the anniversary of the handover. 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. And today, we hear from outspoken local politician James Tien.

(BEGIN VIDEOTAPE)

JAMES TIEN, POLITICIAN: There's no such word as a Hong Konger, but I would say that I'm Chinese, but I will always add on that I'm a Chinese from Hong

Kong.

I'm James Tien. I was the chairman of the pro-business liberal party in the legislative counsel of Hong Kong.

I think the one thing that's really special that Hong Kong is a place that east meets west. We're somewhat different in ideology and living behavior

versus the Chinese from the mainland.

Basically, Hong Kong is the capitalistic society, why mainland is socialistic society. We are part of China. We're not independent.

On the election of our leader, I think the best way forward is that Beijing identifies two or three candidates that they trust and they believe in and

let the Hong Kong citizen people, we vote for either one of them of their choice, because currently we're not quite there yet, is that basically

Beijing decides on someone that they prefer and it's not up to the 5 million people, it's up to 1,200 member election committee. They decide.

I hope the next five years we have a chief executive that's more democratic camp, more friendly with the people in the media, and put Hong Kong back on

the right footing.

(END VIDEOTAPE)

All week, we are live from Hong KOng's harbor front as we countdown to the 20th anniversary of the handover to China. Earlier today, you heard from

the next chief executive of the Chinese special administrative region of Hong Kong. Tomorrow hear from the last governor of the British crown

colony of Hong Kong, Chris Patton.

Well, that's all for News Stream today. World Sport with Riannon Jones is next.

END