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NEWS STREAM

Former governor reflects on Hong Kong; Audrey Hepburn items go up for sale. Aired 8-9a ET

Aired September 26, 2017 - 08:00   ET

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


[08:00:00] (COMMERCIAL BREAK)

KRISTIE LU STOUT, CNN NEWS STREAM SHOW HOST: I'm Kristie Lu Stout in Hong Kong and welcome to "News Stream."

An escalation of rhetoric between North Korea and the U.S. Pyongyang is said to be moving airplanes and boosting its defenses.

Island of devastation. Puerto Rico calls for more aid and action.

And we speak to Hong Kong's last colonial governor. Find out why Chris Patten thinks countries should not be afraid to stand up to Beijing.

We begin with North Korea and its spiraling war of words with the U.S. Pyongyang is ramping up its defenses on its east coast, that's according to

South Korean intelligence. U.S. bombers flew along that territory over the weekend though they were over international waters. The U.S. president,

Donald Trump, has been accused of fanning the flames.

The North Korean foreign minister says Trump declared war in a tweet. He also claims North Korea has the right to shoot down U.S. planes even if

they are not in North Korean air space. Now, is it all just a war of words or is this an actual escalation of the conflict? Let's go straight to CNN's

Paula Hancocks. She is standing by in Seoul. Paula, it is still only words at this point, but still is it starting to cross a dangerous line?

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, we are seeing more than words, obviously that rhetoric is concerning many, but as

you alluded at the beginning there, the intelligence agency here in South Korea says they have seen some kind of movement as well. They did see a

movement of airplanes, of military assets to the east coast of North Korea, believing that that was in response to those U.S. B-1B bombers that flew

there.

They also say they believe that North Korean soldiers along the DMZ, the demilitarized zone between North and South Korea have been told to report

an incident first and take measure second showing that they are trying to make sure there is no miscalculation or no clash. There is no doubt,

though, that there are concerns about what's happening.

(BEGIN VIDEOTAPE)

HANCOCKS (voice-over): A dangerous game of chicken as two nuclear arm leaders threaten to destroy the other. The war of words between U.S.

President Donald Trump and North Korean Kim Jong-un is beginning to shake even the most steady of nerves. Recently, Trump has rolled out a new

nickname for the North Korean leader, "rocket man."

Kang Myung-do was a member of the elite in North Korea and he worries that Mr. Trump crossed a line by getting personal with Kim Jong-un, sparking the

first ever direct response from the North Korean leader, pledging Trump would pay dearly for threatening his country.

Kim Jong-un is a God-like figure, says Kang, and if the God-like figure says such things to the U.S., it's not just going to stay at words, it

needs to be put into action. That's what make this situation serious.

After a Trump tweet over the weekend that the North says it interprets as a U.S. declaration of war, Foreign Minister Ri Yong-ho said Monday, North

Korea is now within its rights to shoot down U.S. bombers even if they aren't to their air space. On Saturday, U.S. B1-B bombers flew further

north of the DMZ than any other time this century.

A show of force that sparked a propaganda video of a North Korean website with true credits (ph) to show the U.S. bombers being destroyed. The video

claimed to be posted by an officer of the KDA, the North Korean military.

Some defectors have joined forces to show Mr. Trump they support his hard line stance on North Korea. At a recent protest, they pledged to join a war

of liberation to eliminate Kim Jong-un, the hatred for the leader of their home country is hard to miss.

This defector activist tells me, South Korea tried to talk and Pyongyang did another nuclear test, so we have no choice but to physically fight. The

vast majority in the region, if not the world, wants peace, security, deescalation before words spill over into something else.

JOHN DELURY, ASSOCIATE PROFESSOR, YONSEI UNIVERSITY: Once you provoke, if you deescalate, you're worried about losing face. And so, you know, the

United States is backing itself into a corner here. The North Koreans can stay in that corner. I mean, they lived in that corner for 70 years.

(END VIDEOTAPE)

HANCOCKS: So the insults are flying at this point and there is concern certainly around the region as there is a real sense now that the world is

just waiting to see whether Trump or Kim blink first. Kristie?

LU STOUT: Yes, frightening scenario there, just really

[08:05:00] the unthinkable would happen. The North Korean defector told you that these threats are getting personal and that's why North Korea is

lashing back and perhaps why it asserted that it has the right to shoot down U.S. warplanes even when they are not inside their space border. But,

he may say it has the right to do that, but does it have the capability? Can North Korea follow through on that threat?

HANCOCKS: It is believed that they have a fair artillery. I mean, we know that they have a very advanced missile program. So certainly in theory, you

would assume that they would be able to do that or at least make a fair go of it. Whether or not they would, of course, is a completely different

matter. They would know that if they try to shoot a U.S. bomber out of the sky, then that changes the game completely.

We also know from the intelligence agency today, telling lawmakers that they believe that the U.S. had to actually tell North Korea that they had

flown this sortie, that this B1-B bombers had flown because they haven't picked them up on the radar and they didn't necessarily know that they had

carried out that show of force. So, that again would suggest the radar is maybe not as good as you would expect and will also explain why maybe they

moved assets to the east coast.

LU STOUT: Paula Hancocks reporting live from Seoul, thank you.

Keep in mind that North Korean media frequently make inflammatory comments in the past, has called U.S. action a declaration of war.

A few days ago, a commentary carried by North Korea's news agency said the reckless saber-rattling by the U.S. could ignite a nuclear war is getting

on the nerves of North Korea and is a threat to global peace and security or this one has came out from news agency (ph) a few hours ago, quote, the

U.S. military counteraction to the DPRK will lead Washington to the final ruin.

And you have this line calling the U.S. imperialist aggressor warmongers who are opting for a military adventure by provoking a nuclear war against

the DPRK.

Turning now to Puerto Rico where millions of people are still without running water or electricity nearly one week after Hurricane Maria

destroyed everything in its path.

Take a look at this. These are before and after satellite images, and they they show you what the island used to look like during the night time

versus now. I mean, after the storm took out the entire island's power grid. The governor is urging the U.S. congress to approve an aid package,

stressing that Puerto Ricans are yes, Americans.

(BEGIN VIDEO CLIP)

GOV. RICARDO ROSSELLO, NEW PROGRESSIVE PARTY, PUERTO RICO: We want this bill to have the resources that would have been allocated to another state

because we're U.S. citizens, proud of that, and the flexibility to execute and financing as well. If this is not done, if proper care is not taken for

Puerto Rico, I'm afraid we will succumbed into a humanitarian crisis and you will see a massive exodus of Puerto Ricans into the United States.

(END VIDEO CLIP)

LU STOUT: The governor of Puerto Rico there saying yes, we are U.S. citizens. The situation outside the capitol is especially dire. CNN's Bill

Weir spoke to some of the survivors who are struggling to cope with the unbelievable devastation.

(BEGIN VIDEOTAPE)

BILL WEIR, CNN JOURNALIST AND ANCHOR (voice-over): It is so hard to move around this island because Puerto Rico is a tangled mess of shattered trees

and down power lines and endless gas lines where the desperate can wait half a day under a blazing sun for a few precious gallons.

In the rural highland south of the capital, it looks like a bomb went off. Once lush green hillsides are now brown and broken by the power of Maria's

wind. And it's up here where most of the 28,000 residents of Aguas Buenas had no choice but to shelter in place and pray. This camper is paused like

a toy. Deanna (ph) and her family were huddled --

UNIDENTIFIED MALE (voice-over): (UNTRANSLATED)

WEIR (voice-over): -- in their home across the street.

UNIDENTIFIED MALE (voice-over): (UNTRANSLATED)

WEIR: How are you? How was life? How are you surviving?

I thank God I'm still alive, she tells me. I can't describe the storm. I've never seen anything like it in my life.

It's hard to tell from the road, but the back end of this house is built on concrete steel driven into the hillside, so imagine the anxiety as Maria

really picked up strength. Deanna (ph) inside, she is caring for invalid husband. She is worried that the back end of the house, this bedroom is

going to just slide into the ravine, so she moved the whole family into the living room.

They hear the crash of this power tower go down on the neighbor's roof. Water is coming in through the shudders. She is trying to keep it up. At

one point, she tells me, they prepare to die together.

Which is scarier? A combat in Vietnam or Hurricane Maria? The hurricane is worse.

Miguel survived a combat tour in Cambodia. And now, Deanna (ph) worries about the last vial of his insulin, at risk of spoiling in a powerless

refrigerator.

[08:10:00] UNIDENTIFIED FEMALE: (UNSTRANSLATED)

WEIR: Yet with textbook hospitality. Oh, mucho gracias. She takes the time to make us coffee.

A few miles up the road, more kindness and much more misery. Here's a drone shot of this area before Maria and here it is today. This is what a

category four hurricane will do to wood construction. The roof, who knows what happened to the roof. It's amazing the walls held the way they did.

Trophies earned by Wilfredo's grand kids still stand in a room with no roof. He was released from prostate surgery the day the storm hit. Hold up

with his whole family in a local church and they all survived. But now he has little left, but his faith.

How would you describe people's desperation? Are you seeing looting? Are you seeing anger?

There has been looting. The mayor of Aguas Buenas tells me. There have been robberies. When it comes to the feelings of the people of this town, we are

saddened because we are still looking for people.

As an American, I wonder how do Puerto Ricans feel about being American territorian times like this? Do you think America will come save you? Do

you hope they will?

Yes, he tells me. President Donald Trump has approved a disaster declaration. We will move forward with the help of the United States.

UNIDENTIFIED FEMALE: What they can give us, we will receive with a lot of love. Thank you.

WEIR: You're welcome.

UNIDENTIFIED FEMALE: Very much.

WEIR: We are thinking of you. Bill Weir, CNN, Aguas Buenas, Puerto Rico.

(END VIDEO CLIP)

LU STOUT: Police in Israel say a Palestinian gunman was a lone wolf, not part of any terror group. A police spokesman says the attacker opened fire,

killing three Israelis in Har Adar, an Israeli settlement located on the border with the West Bank. CNN's Ian Lee is at the scene. Ian, presumably

this attack took place right behind you. How did it all enfold?

IAN LEE, CNN CORRESPONDENT: That's right, Kristie. Just right behind me is where the gate that Palestinian laborers would come through on a daily

basis at around 7:00 in the morning, they were lined up as usual, and that's when a man in the back looked suspicious. The police moved in to

engage this man. That's when he pulled out a pistol, shot and killed three security guards working there, one Israeli policeman and two security

guards, and injured another person.

That's also when security forces were able to come in and killed this 37- year-old Palestinian man who's from a village just over those hills. And talking to people in this community, this was a person who was known here,

he's worked here for quite some time. A lot of people saying they don't know how this could happen. Right now, though, there is a heightened sense

of security here.

We also heard condemnation from the prime minister, who said that they're investigating this. He says there is three things he does now. One, the

house of this man, this Palestinian man, will be destroyed. Another is that that village will be on locked down as they search through it. Third, the

family members of this man will have their work permits to work in Israel, those will be revoked.

We also heard from Hamas who praise this attack saying this is an attack, it's justified because of the ongoing occupation. But at this moment,

Israeli police don't believe it's connected to any larger group. They believe that this was a lone wolf attack, Kristie.

LU STOUT: Tell us more about the crossing at Har Adar. Who and how many people usually cross through and how much security is usually in place

there?

LEE: So this is pretty typical. You have Palestinians coming from the West Bank and they enter settlements as day laborers, working from a range of

issues from cleaning houses to doing construction. A lot of Palestinians have jobs like these. And there are a little about 100 Palestinians who

work here in Har Adar. Every morning, they would line up here. In the back and further in the distance, you will see their cars and they will park

their cars and they will come through here.

There would be security here. There's a turn style, you can see they go through that. They would be checked. They will show their permits to work

here. There is quite a bit of security. You had three security guards who were killed. One other person was shot in the stomach, injured, expected to

live. But police and other security elements were able to neutralize this attacker fairly quickly.

A lot of heavy security, but talking to residents here, they're wondering if it really is enough. But to just give you an idea, they stopped him here

because he looked suspicious. About a few hundred yards up that direction, there is a school, which talking to people here, that this incident that

happened

[08:15:00] made them quite nervous.

LU STOUT: Ian Lee reporting live for us from Har Adar in the West Bank. Thank you, Ian. The results of the Kurdish independence referendum in Iraq,

they are not expected for at least another day, but Kurds there and the nearby countries are already celebrating. Officials say at least 72 percent

of eligible voters cast their ballots.

Although many are cheering this vote, Iraq, Iran, and Turkey have all condemned it. The Iraqi government has hinted it could use force if

necessary to maintain unity. Let's get the latest reaction to the referendum and what could happen once the result is in.

Nima Elbagir joins us now live from Erbil, Northern Iraq. Nima, nearly every major year by power opposes this vote. How are they expressing their

opposition?

NIMA ELBAGIR, CNN SENIOR INTERNATIONAL CORRESPONDENT: And beyond, Kristie. You now have the Kremlin speaking out against it. You have Germany's

foreign minister, the U.S. and the U.K. in the days leading up to this vote actually made -- traveled out here. The U.S. (INAUDIBLE) came out, the

British secretary of defense, all essentially asking the Kurds to turn away and they didn't.

They persisted and they have moved forward, with what they believe to be almost a pre-destined event, that fundamentally, this has been centuries in

the making. That's what we keep hearing from people here, Kristie, that if not now, then when? The Kurdish people have already waited so long for

their own statehood, but all those surrounding them have said that there will now be consequences.

Iraq's central government in Baghdad has called for a boycott of Kurdish oil exports. They have also been authorized by Iraqi parliamentarians to

use force if necessary to maintain the territorial integrity of Iraq. More worrying for the Kurdish President Barzani here. They also said that they

will not accept any negotiations based on what they called as illegal and unconstitutional referendum.

That was what the Kurdish regional government had been hoping for, that at the very least, this would give them a mandate to begin negotiations with

Iraq, to begin some kind of break away talks. But as of now the Iraqi government has said that is in no way on the table. Not just that, they've

also began very high profile war games with neighboring Turkey, right up against the Kurdish regional border, sending a very loud, very clear

message to the Kurdish government here, Kristie.

LU STOUT: Nima Elbagir reporting live for us from Erbil, Iraq. Thank you.

You're watching "News Stream." Up next, on the defense, the White House speaks for President Trump at his feud with NFL players. We'll tell you

what Mr. Trump is tweeting about today.

And Facebook and other social media sites have been plagued with the reports of fake news during the 2016 election campaign in the U.S. How tech

leaders are trying to deal with propaganda on their sites before officials step in with regulations.

[08:20:00] (COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong. Welcome back. This is "News Stream."

U.S. President Donald Trump is fighting fires domestically and on the world stage. Now, his feud with protesting football players is heading into

overtime. A short time ago, Mr. Trump tweeted this, quote, the booing at the NFL football game last night, when the entire Dallas team dropped to

its knees, was loudest I have ever heard. Great anger.

He went on to tweet this. But while Dallas dropped to its knees as a team, they all stood for our national anthem. Big progress.

Now, here you see the Cowboys kneeling before the national anthem during their Monday night game against the Arizona Cardinals. Both teams locked

arms during the anthem. The U.S. president angered many of the league when he said athletes should be fired for disrespecting the flag by not standing

during the national anthem. And the fans should boycott NFL games. Miami Dolphins' tight end Julius Thomas explains why athletes are protesting.

(BEGIN VIDEO CLIP)

JULIUS THOMAS, FOOTBALL TIGHT END, MIAMI DOLPHINS: I was just truly hurt. I don't think a lot of people truly understand what it feels like to wake up

in this country and not feel equal. To truly, truly feel that your voice won't be heard as much as somebody else.

And to hear the president, the leader of our country, call somebody a son of a bitch that I have a lot of respect for, that had called a group of men

that I have a lot of respect for, and talk about them in that language, it was tough. It was very emotional for me. And in that moment, I knew that I

could no longer continue to stand by and not take a stance.

(END VIDEO CLIP)

LU STOUT: Julius Thomas there. Despite the backlash, Mr. Trump seemed pleased with himself, reportedly telling guests at a White House dinner

that it's really caught on. White House Press Secretary Sarah Huckabee Sanders added this is about honoring our flag.

Meanwhile in Washington, senate Republicans' latest attempt to repeal Obamacare appears to have collapsed after Susan Collins voiced her

opposition. Both senators Lindsey Grahan and Bill Cassidy are vowing to press on with their plan.

A CNN special presentation called "The Fight Over Obamacare" airs next hour, 9:00 p.m. in Hong Kong. That's 2:00 p.m. in London.

Mr. Trump's son-in-law and senior adviser Jared Kushner is coming under scrutiny for his use of a private e-mail account. His lawyer says Kushner

sent dozens of e-mails to White House officials from his personal account.

Last year, Mr. Trump repeatedly attacked presidential rival Hillary Clinton for using a private e-mail server while she was secretary of state. She

responded to the news during a radio interview.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, FORMER U.S. SECRETARY OF STATE: And the hypocrisy of this administration who knew there was no real scandal, who knew that there was

no, you know, basis for all their hyperventilating. And now we're finding as with the latest revelation that they didn't mean any of it.

UNIDENTIFIED FEMALE: Right.

CLINTON: It's just the height of hypocrisy.

(END VIDEO CLIP)

LU STOUT: Under federal law, all those e-mails have to be preserved. Kushner's lawyer says that has been done with Kushner's e-mails forwarded

to his official address.

Social media platforms like Facebook and Twitter are dealing with calls for regulation after Facebook revealed it sold ads to Russian-linked groups

during the 2016 presidential campaign in the U.S. CNN's tech Laurie Segall talks to tech leaders who are trying to make changes before the government

orders them to do so.

(BEGIN VIDEOTAPE)

LAURIE SEGALL, CNN SENIOR TECHNOLOGY CORRESPONDENT (voice-over): More than 3,000 ads sold to a Russian troll farm aimed at targeting U.S. citizens to

influence the election and an admission from Facebook's CEO Mark Zuckerberg.

MARK ZUCKERBERG, CEO AND CO-FOUNDER, FACEBOOK: Our teams have found and shut down thousands of fake accounts that could be attempting to influence

elections in many other countries.

SEGALL (voice-over): But as Facebook turns over the ads purchased by Russia to congress, there's a new sense of urgency here in Silicon Valley, make

changes or face regulation. And the pressure is mounting.

ANDREW MCLAUGHLIN, FORMER DIRECTOR OF GLOBAL PUBLIC POLICY, GOOGLE: I don't want the government making decisions about speech because or core

democratic institutions are so unreliable. At the same time, these platforms play such a powerful role in making these decisions that we want

them to be somehow accountable.

SEGALL (voice-over): As Zuckerberg promised to add more transparency to political ads on Facebook, he said the company will double the number of

people working on election integrity. But is it too little too late?

MCLAUGHLIN: We can't just simply write math that we can believe mutually chooses the best content. We're making

[08:25:00] choices that are incredibly consequential for what speech gets aired and seen by ordinary people, ordinary Americans.

SEGALL (voice-over): While major tech CEOs are beginning to grapple with the unseen consequences of their increasingly powerful platforms, there are

some calls for tech companies to be regulated as utilities. Many in Silicon Valley disagree. I recently spoke to Twitter and medium founder Ev Williams

about it.

SEGALL (on camera): A congressman suggested that there should be an act passing legislation to put disclosure requirements on social media

advertising similar to the ones that we see on TV commercials.

EV WILLIAMS, CEO, MEDIUM AND CO-FOUNDER, TWITTER: Oh, this ad paid for.

SEGALL (on camera): What impact would that have?

WILLIAMS: I don't think people would pay attention to it.

SEGALL (voice-over): When it comes to regulation, Williams isn't opposed. He's just doubtful of the process producing good results.

WILLIAMS: I'd prefer no regulation to bad regulation. There's no obvious thing that you would say to Facebook or Google or Twitter, like, go fix

this now and they're, like, oh, we're not doing that because we don't have to. They're all trying to make the best as soon as they can.

SEGALL (voice-over): Questions about content are complicated.

WILLIAMS: The difference between -- a difference of opinion or political belief and a difference in wrong facts is really hard to sort out. And I

don't thin anyone has figures out how to sort that out automatically.

SEGALL (voice-over): The same gray area applies to Facebook. While the company says they'll disclose political ads, who's to decide what

constitutes a political ad on the platform, and what device propaganda and an idea.

WILLIAMS: And that's when some people are going where there needs to be editorial guidelines and you get into an area where most tech companies be

like, that's not something that really fits in our model or that we would even be good at.

(END VIDEOTAPE)

LU STOUT: That was CNN's tech Laurie Segall on the debate of a possible social media regulation.

A former U.S. congressman whose repeated scandals cost him his seat in congress will now have to get used to prison life. A federal judge

sentenced Anthony Weiner to 21 months behind bars for sexting with a 15- year-old girl. Weiner is the estranged husband of Huma Abedin, Hillary Clinton's former advisor. He broke down during sentencing and said that

this crime was his rock bottom.

Still to come right here on "News Stream," should Britain do more to address political tension between Hong Kong and Beijing? I asked Hong

Kong's last colonial governor, Chris Patten, about that.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching "News Stream" and these are your world headlines.

South Korean intelligence says North Korea is moving planes and ramping up its defenses along

[08:30:00] its east coast. U.S. bombers flew along that territory over the weekend though they were over international waters. The North Korean

foreign minister says Pyongyang has the right to shoot those planes down.

Millions in Puerto Rico are still without power and communication following hurricane Maria. The governor is asking U.S. Congress to approve an aid

package emphasizing that the island's residents are Americans.

President Trump is to get a briefing on the situation there in the coming hours. Security is tight in the capital of Kenya when protesters say that

they will march peacefully to the Electoral Commission Office in Nairobi.

They want the top officials to step down from bungling Kenya's general election. A new presidential vote is to be held next month. The rerun was

announced after Kenya's Supreme Court annulled the first vote.

In Bali, Indonesia disaster relief teams are preparing in a fear a volcano could erupt. More than 75,000 people have been evacuated within 12

kilometers of Mount Agung. Last time it erupted was in 1963 and it killed 1700 people. Visitors are being told it is still safe to go to popular

tourist areas south of the volcano.

In China, users of WhatsApp have been experiencing spotty service. Now WhatsApp says Chinese internet service providers are disrupting access to

the messaging app. The restriction seems to target only local users.

People using international SIM cards are not affected. Beijing regularly tightens its grip on the internet before major Communist Party meetings.

Next one comes in October and party members gather for the once in every five years, National Congress.

(END VIDEOTAPE)

LU STOUT: Hong Kong's last colonial Governor Chris Patten calls this city a test case for how China will behave in the 21st century.

Under in his recent visit, he told me white countries including Britain should not be afraid to stand up to Beijing even when billions of dollars

in trade are on the line. In the second half of our two-part interview, a survey asking whether 20 years after the handover, he still loves Hong

Kong.

(BEGIN VIDEOTAPE)

FORMER GOV. CHRIS PATTEN, HONG KONG: I have defined happiest years of my life in Hong Kong and that was for a number of reasons, to my wife and

youngest daughter who was here the whole time and was a secondary school here would say the same.

Number of reasons, first of all because it is such an exciting and wonderful place, and it's still one of the greatest cities in Asia.

Secondly, because the issues that we were dealing with were so important and there isn't Hong Kong's DNA I think an understanding of the relation

between relationship.

This sounds a bit sanctimonious but I think it's true. The relationship between economic freedom and political freedom and people know about that.

So the issues that we were dealing with -- that I was dealing, what issues which go right to the heart of what I believe is a liberal Democrat from

the west.

And they're just as relevant in the west as they are here and this is relevant here as they are in the west, and I kept on reminding myself over

the years that Hong Kong was basically a immigrant city -- city of refugees, refugees from some of the awful events elsewhere including awful

events in China.

So, combining those qualities was the rule of law and the ability of people to run their won lives as much as they want them to set up their own

businesses.

And to get rich without other people be envious, and to see some of their resources going into increasing social provision or perhaps not enough in

the area of the housing, I think that we made it just bring unbelievably enjoyable.

LU STOUT: Can you bring more pressure to Britain to stand up before Hong Kong?

PATTEN: A bit and my main argument on that front is that actually it's people in Hong Kong. We've got to show that they believe in this in order

to make it work. And you can't -- I can't pretend that the rest of the world is going to be more heroic that it likely to be the case.

But two thing, first of all, I think the other countries should recognize and that you're going to have to be supine politically to have reasonable

economic relationship with China. I think that's politically upset.

The other thing which I think people have to recognize is that if China breaks its word in Hong Kong, when is it anybody going to believe it signs

treaties or agrees to do this or that. So I think that Hong Kong is sort of a test case for how China will behave in the 21st century.

LU STOUT: It is now Brexit world. Do you fear that Britain won't dare to antagonize China, a major potential trading partner?

PATTEN: Well, it's interesting that Germany is pretty outspoken about Chinese behavior in Hong Kong and I think I'm right in saying that Germany

exports three times as much to China as Britain does.

[08:35:00] While I was here and having occasional arguments with Chinese officials, Britain's exports to China boomed. To the previous five years,

they've been doing down and export performance in China while I was here was better than the OECD average.

So I never really thought that there was that sort of mechanistic relationship between poodle like behavior and your abilities through

business in China. Chinese buy things and if they know the price is good, and they're going to work.

One of my serious argument as somebody who believes that China doing well isn't the threat. China doing badly would be a threat, so I don't go over

the Chinese economy continue to -- continue to boom.

But I have some sympathy with President Trump and he says, what argues that China doesn't play him a level playing with it. And I think the way things

like the American Chamber of Commerce report in Beijing and that's exactly the point they make, too.

(END VIDEO TAPE)

LU STOUT: Chris Patten there calling Hong Kong a test case for China. Just ahead right here on News Stream.

(BEGIN VIDEO CLIP)

She was a star in Hollywood's golden age and the closing, one of the lead actress, Audrey Hepburn is up for auction in London. We'll take a look at

the extraordinary collection, next.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

LU STOUT: Welcome back now. If you have ever fancied a real piece of memorabilia, now is your chance. A collection of Audrey Hepburn's clothing

and personal items is going up for sale at Christie's in London.

Now the actress was idolized. In 2006 the Givenchy cocktail dress created for Breakfast at Tiffany's fetched almost $900,000 on the seven times the

estimate. Nick Glass got enough close look at the items now for sale.

(BEGIN VIDEO TAPE)

AUDREY HEPBURN, ACTRESS, STYLE ICON: Won't you join me?

NICK GLASS, CNN INTERNATIONAL CORRESPONDENT: Clothes are positively a passion with me, confided Audrey Hepburn in 1953. I love them to the point

where it's practically a vice.

And naturally she looked rather good in practically everything, especially if the label was couture. Christie's London auction offers a wide

selection from her personal wardrobe.

ADRIAN HUME-SAYER, HEAD OF SALE, AUDREY HEPBURN AUCTION: We've got Givenchy, Ralph Lauren, Valentino, Givenchy, Givenchy, Andre Laug,

Givenchy, a Valentino.

GLASS: A careful steam to get some of those last wrinkles out. Some of these clothes have been hanging in storage in Los Angeles for a while. And

this isn't just any little black cocktail dress. It's one created for the movie Charade in 1963. It is expected to make $100,000 or more.

SEAN HEPBURN FERRER, AUDREY HEPBURN'S SON: I think that she's considered and people feel as though she's one of us. She's that girl across the

landing that puts the little black dress on and goes out and conquers the world.

[08:40:00] GLASS: Audrey Hepburn had two sons, Sean by her first marriage to the actor Mel Ferrer, and Luca by her second marriage to an Italian

psychiatrist Andrea Dotti. The half brothers have made their living from their mother's image and estate. They'll divide the profits from the sale

50-50.

LUCA DOTTI, AUDREY HEPBURN'S SON: It's like when you're selling your house, you're ready for it. You're moving forward. But you don't want

necessarily to be there when the new owners move in with their own furniture, you know. It's like -- it's like that.

HEPBURN: How do I look?

GLASS: Swell is the answer. Did Audrey Hepburn ever take a bad photograph? Here are some of her contact sheets from a LIFE magazine shoot

when she was making Sabrina in 1953. Along with her photographic archive, the sale includes old scripts, plays and movies, some signed and some with

her scribbles.

CAITLIN GRAHAM, FILM MEMORABILIA CONSULTANT, CHRISTIE'S: So here is a lovely annotation in pencil about Carey Grant, which reads, dark eyes, dark

hair, going gray, actually. You see he's not young, but he's not too old either. In good physical shape, I'd say. Which, you know, lovely to get

her thoughts on him.

GLASS: Audrey Hepburn retained such a level of celebrity that it's hard to put a price on her belongings. Who knows what a devoted fan will pay for

her Burberry trench code, her Cartier lipstick holder and powder compact, a pair of her sunglasses, the only pair on offer here.

The director Billy Wilder expressed it better than most, God kissed the cheek of Audrey Hepburn and there she was. And here she is now or at least

a lot of her things almost 500 lots to be precise, all looking for a new home. Nick Glass, CNN, at Christie's in central London.

(END VIDEOTAPE)

LU STOUT: And a reminder for you that the U.S. healthcare showdown has all but ended. Senate Republican's latest attempt to repeal Obamacare, appears

to collapse after Susan Collins was her opposition but others, they promised to press on.

And to catch up, we're going to show a replay of the scene and debate between U.S. Republican and Democrat lawmakers, it's airing at 9 p.m. in

Hong Kong. That's just over 15 minutes from now, it's 2 p.m. in London and that is it for News Stream. I'm Kristie Lu Stout but don't go anywhere,

World Sport with Alex Thomas is next.

END