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World Headlines; Melbourne Attack; Pyeongchang 2018; Building Fire Kills 29 People In South Korea; Disgraced Cardinal Law To Receive Vatican Funeral; Republicans Celebrate Passage Of Landmark Tax Bill; Catalonia Votes For New Regional Leaders; North Korea Ghost Ships Washing Up In Japan. Aired 8-9a ET

Aired December 21, 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 ANCHOR: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream.

(BEGIN VIDEO CLIP)

LU STOUT: At high speed, a car ramps into a crowded pedestrians in Melbourne and police say the driver has a history of mental illness.

Lives lost in a blaze in South Korea as an 8-story building goes up in flames. And voting to settle a Spanish independence dispute -- it's

election day in Catalonia.

(END VIDEO CLIP)

LU STOUT: And we begin with the very latest from Melbourne, Australia. A 32-year-old man is accused of deliberately driving an SUV into a crowd,

injuring 18 people, including a young child.

It happened in one of the busiest parts of the city, as Christmas shoppers were making last minute purchases. Now police are looking into the

suspect's history of mental health issues and drug abuse. And we are seeing video like this one.

LU STOUT: Witnesses describe the scene of pandemonium. A second man was taken into custody, a 24-year-old who was spotted nearby filming the

attack. And police say that there was no evidence that this was an act of terror, but the suspect is known to them.

(BEGIN VIDEO CLIP)

SHANE PATTON, ACTING CHIEF COMMISSIONER, VICTORIA POLICE: What we do know about the driver of the car, he is a 32-year-old strained citizen of Afghan

descent. He is a person who is known to Victoria police.

He has historic assault methods. He is not currently on any vial or any corrections order, or anything of the like, and has a history of drug use,

as well as mental health issues.

We understand, as I said, he is very ill, he is on a mental health plan and receiving treatment for mental illness. We are working through those to

clarify that. He is still in custody, under a risk for these offense for what we allege is a deliberate act.

(END VIDEO CLIP)

LU STOUT: Now journalist Sara James joins us now live from Melbourne. And, Sara, police say that this was a deliberate act but there is no

evidence of a link to terrorism. So why did this happen?

SARA JAMES, JOURNALIST: Well, they're still looking into the motivations for exactly what prompted this 32-year-old man to drive his car into a

crowd of holiday shoppers.

They don't know the answer to that yet but they said in a news conference tonight that this is a man who has a history of mental health issues, drug

issues and has had violent altercations in the past, although, nothing like what happened here. But you are right.

They said that this is not linked to terrorism. And of course, that was something that they were looking closely into because there have been plots

foiled in recent weeks, months and years, so that was something that they were looking at closely.

Nevertheless, Kristie, this is something that's just sent shock waves throughout Melbourne because this was a busy time, holiday shoppers were

going to look at the Christmas windows, commuters were taking the train back to see their families for the holiday.

And then this car traveling at high speed, an SUV drove down the tram tracks in the center of busy Flinder Street and plowed into pedestrians who

had no idea it was coming.

The driver of the car was pulled from the car by an off duty police office. And, Kristie, one thing that the police are saying tonight is how quickly

that response came. Within about 15 seconds, authorities were already responding to what happened.

The 32-year-old Australian citizen of Afghan descent was pulled from the car. And as you mentioned, another man was arrested at the scene or picked

up at the scene, but interestingly, police now say they're not sure that there was any connection between the two men, and may have had absolutely

nothing with it.

He was videotaping the incident. So they are talking to him about that. So the investigation is still very much unfolding, the premier, the head of

the state, Daniel Andrews saying this was an evil act -- an act of cowardness but urging Melbournians and people in Australia to be brave and

to carry on.

And that is actually happening tonight. There are still crowds out on the streets. And in many ways, away from this particular area, it is business

as usual, Kristie.

LU STOUT: You told us about the driver, the investigation, the very quick and speedy emergency response -- you know, bravo to the team for doing

that.

Let's talk further about the victims, because the victims of this car rampage include a pre-school age child who was sent to hospital with a

serious head injury.

[08:05:00] What is the latest on -- on the human toll here?

JAMES: Yes, that is absolutely right. And that is something we would love to know more about. What we can tell you is that there were 18 people who

were injured.

The off duty officer and many innocent people who were just going about their normal every day jobs, one of them is a child. He is being -- we

don't know the gender of the child. But the child is being treated at the Royal Children's Hospital.

We know that there are four people who are in critical condition tonight. That's terrible news for them and for their families, particularly at this

time of year. So there are a lot of families who are grieving tonight and looking for answers as to what prompted the seemingly senseless act.

And that will be a huge part of this as it goes on. So really, there are - - probably, there are some answers -- important answers, but there are still a lot of questions of what prompted this to take place. Kristie.

LU STOUT: A horrific attack, a terrible crime taking place in the community. Sara James, we thank you for your reporting. And now to the

Philippines, where a ferry capsized of an island South in Manila, 251 people are on board, four people are dead.

At least 200 have been rescued. The ferry overturned in the storm. The coast guard says the boat was not overloaded. And now to South Korea --

and these pictures coming to us now of that deadly fire at an eight story building.

At least 29 people have been killed. Paula Hancocks joins us now from Seoul. She has learned more about this fire disaster. And, Paula, just

earlier this evening, we were just watching that grim statistic, the death toll continuing to rise. What are officials saying about the fire and what

made it so deadly?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Kristie, this death toll really has risen quite significantly as the evening has gone on. And we are

hearing from local media, they believe it's the deadliest fire in South Korea almost ten years.

Now what we are hearing from fire officials -- they believe that it started off in a parking lot. So potentially, a parked car on the ground floor and

then it swept through the building.

What they are specifying as well is toxic fumes and toxic gas saying that that went through the building. It hindered rescue operations because the

fire operator couldn't get in there as quickly as they wanted. It would have caused difficulties to those still trapped inside as well.

It's not clear at this point why exactly there is toxic gas from this fire but that is certainly one of the things they're going to be looking at very

carefully in an investigation. So what this building was, there was a sports center within it.

On the second and third floors, there was a public bath, a spa. And that's where many of the bodies were found according to fire officials. There was

also gym and restaurants.

Some dramatic rescue, though, about 20 people were rescued from the roof by ladders and helicopters, some even jumping off a balcony and landing on an

inflatable mattress. They've survived as well. But certainly it is a devastating fire. And this death toll has really risen quite steadily

throughout the night.

LU STOUT: So at this moment, at least 29 people were killed. What has been the reaction to this tragedy there? And is it also raising concern

about fire codes and building safety?

HANCOCKS: It absolutely is. As it does every time, there is this kind of fire. There was a devastating fire of 2014 in a retirement home in Korea

that killed 21.

There was a ventilation great that collapsed at a concert, killing 16. So after each of these kinds of tragedies, the questions always arise, are the

building regulations steady enough, are they strong enough for these health and safety regulations in this country, are they strong enough as well.

So certainly, there's going to be some recrimination, some investigation. But I think the investigation will surround the toxic gas and the toxic

smoke, where has that originated from and why is that rising through a building with such a fire. Kristie.

LU STOUT: A tragic development there is South Korea. Paula Hancocks, reporting for us live from Seoul. Thank you. South Korea says it fired

several warning shots toward North Korea after a North Korean soldier defected across the DMZ.

Now he did it under the cover of heavy fog. And South Korea says North Korean soldiers approached the military demarcation line searching for him.

That's when the warning shots were fired. He is the second North Korean to defect across the DMZ in less than six weeks.

North Korea is denying it has any link to the WannaCry cyber attack after the United States officially blamed the regime. A foreign ministry

spokesman made the denial on North Korean state media, calling the accusation a political provocation.

In May, ransom ware infected tens of thousands of systems across 164 countries, including the U.S., Japan, Canada, New Zealand, the U.K. and

Australia.

[08:10:00] I also believe that North Korea was behind the attack. Now, still ahead right here on News Stream, survivors who were abused by priests

are speaking out ahead of the funeral for Cardinal Bernard Law. We are live in Rome next.

(COMMERCIAL BREAK)

LU STOUT: All right, coming to you live from Hong Kong. Welcome back. This is News Stream. Now, Pope Francis has used a pre-Christmas greeting

to deliver a frank message to some of his colleagues. He addressed the need for reform in the Catholic Church and denounced cliques and

bureaucracy in no uncertain terms.

(BEGIN VIDEO CLIP)

POPE FRANCIS, POPE OF THE CATHOLIC CHURCH (through a translator): Our reality is in the contemplation of Christ and the truth. This is very

important for accentuating the unbounded logic of plots, the small churches that really not withstanding all their justifications and good intentions

of cancer, which is against personality.

(END VIDEO CLIP)

LU STOUT: Now in just over an hour from now, the pope will take part in a full Vatican funeral for disgraced Cardinal Bernard Law. Sexual abused

survivors are furious, saying that Cardinal Law does not deserve the honor.

Vatican correspondent Delia Gallagher, joins me now live. And, Delia, why is this disgraced cardinal getting a full Vatican funeral, including a

blessing by the pope?

DELIA GALLAGHER, CNN CORRESPONDENT: Well, Kristie, Vatican officials I spoke into this morning have said that this is protocol. When a cardinal

dies in Rome, the protocol says that pope -- the pope gives the final blessing.

Of course the problem is, we know that Pope Francis is a pope who doesn't necessarily go by protocol all the time. So he could have not participated

in Cardinal Law's funeral. And there are those who are questioning the wisdom of that decision.

From the Vatican's point of view, the officials tell me, this is a funeral. It is a religious event. It is not meant to be a comment on the cardinal's

life.

And that the pope's prayer will be a commendation for the cardinal's soul, commending it to the judgment of God, so the official judgment comes from

God and that the funeral is not meant to be a comment on the cardinal's life. Kristie.

LU STOUT: The Vatican may say that this is protocol but there have been seething anger among sex abuse survivors over these funeral plans. Is the

church aware of the pain that this is causing?

GALLAGHER: In my discussions this morning and certainly since 2002, frankly, there has certainly been an awareness of the sensitivity over

question of particular of Cardinal Law -- his inability and failure to act when he was archbishop of Boston and certainly now on the day of his

funeral, there is an awareness of the sensitivity of this issue.

[08:15:00] That can be seen somewhat in the statements that we've seen come out of the Vatican since Cardinal Law's death, which have been very

measured and muted, and indeed admitting to the failures that happen under his leadership during his time in Boston.

So, yes, there is an awareness of it, Kristie. But I think that the pope's presence at the funeral today is the one that people are really focusing

on, and questioning that wisdom of that decision, which seems to the larger world, certainly to be insensitive to some of the damage that Cardinal Law

caused during his time in Boston. Kristie.

LU STOUT: All right, Delia Gallagher reporting live for us from Rome. Thank you. Now the U.S. ambassador to the United Nations has a rather

undiplomatic threat for the other members. In a couple hours, the U.N. General Assembly is scheduled to vote on a resolution criticizing the

United States.

It concerns the White House decision to recognize Jerusalem as the capital of Israel. Now ahead of that, Nikki Haley tweeted this, quote, at the

U.N., we are always asked to do more and give more.

So when we make a decision at the will of the American people about where to locate our embassy, we don't expect those we've helped to target us. On

Thursday, there will be a vote criticizing our choice. The U.S. will be taking names, unquote. And that was a warning by her boss.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They take hundreds of millions of dollars and even billions of dollars, and then they vote

against us. Well, we're watching those votes. Let them vote against us, we'll save a lot.

We don't care, but this isn't like it used to be, where they can vote against you, and then you pay them hundreds of millions of dollars and

nobody know what is they're doing. And we're not going to be taken advantage of any longer.

(END VIDEO CLIP)

LU STOUT: Meanwhile, President Trump and his fellow Republicans are celebrating the passage of the controversial tax bill. This is Mr. Trump's

first legislative victory since taking office nearly one year ago. But there are questions over how the bill will affect every day Americans.

CNN's Joe Johns joins us now from Washington. And, Joe, fresh from his big legislative win, this is a clue for him. Donald Trump is up and tweeting

this morning, U.S. time, about tax cuts and fake news. What is he saying?

JOE JOHNS, CNN CORRESPONDENT: Well, you know, Kristie, there was exuberance at the White House last night after they passed the tax cut bill

on Capitol Hill this morning. Just a touch of bitterness in the president's tweet -- I'll read it to you.

The massive tax cuts which the fake news media is desperate to write badly about so as to please their Democratic bosses will soon be kicking in and

will speak for themselves. Companies are already making payments to workers. Dems, he says, wants to raise taxes, hate these big cuts.

So there you have it from the president this morning the question of course is whether we will hear from him more today. Meanwhile, there is also a

question about whether the government will shut down because Congress and the president can't agree on a spending bill.

(BEGIN VIDEOTAPE)

TRUMP: All friends -- I mean look at these people, it's like we are warriors together.

JOHNS: President Trump celebrating the tax bill alongside Congressional Republicans, after months of attacking GOP leadership over previous

legislative failures.

TRUMP: Paul Ryan and Mitch, it was a little team. We just got together and we would work very hard, didn't we? It seems like -- it was a lot of

fun. It's always a lot of fun when you win.

JOHNS: The love-fest continuing with Ryan and McConnell gushing over the president.

MITCH MCCONNELL (R), SENATE MINORITY LEADER: It's been a year of extraordinary accomplishment for the Trump administration.

REP. PAUL RYAN (R), SPEAKER OF THE HOUSE OF REPRESENTATIVES: Something this profound could not have been done without exquisite presidential

leadership. Mr. President, thank you.

JOHNS: The quick passage of this legislation causing confusion for taxpayers on how they should prepare for the huge overhaul. The Treasury

Department and the IRS scrambling to write new regulations. Republicans saying workers will feel the benefits of this tax cut in a matter of weeks.

RYAN: On January 1, Americans are going to wake up with a new tax code. In February, they are going to see withholdings go down so they see bigger

paychecks.

JOHNS: The tax bill making a big impact on the Affordable Care Act, eliminating the individual mandate which fines Americans who don't have

insurance. The president false claiming he's repealed Obamacare. He did not. Republicans tried to do that through legislation and failed.

TRUMP: So in this bill, not only do we have massive tax cuts and tax reform, we have essentially repealed Obamacare, and we will come up with

something that will be much better.

JOHNS: President Trump selling this tax overhaul as a Christmas present for middle class with some companies already delivering on the promise.

Comcast and AT&T promising $1,000 bonuses to their employees and Wells Fargo hiking its minimum wage.

[08:20:00] Meanwhile companies like Pfizer and Coca-Cola validating Democrats concerns, saying they will turn over most gains to their

shareholders.

CHARLES SCHUMER (D), SENATE MINORITY LEADER: Is that what you intended? Give them more money so they can buy back more stock, increasing the wealth

of corporate CEOs?

JOHNS: As the tax bill makes its way to the president's desk, Republicans now have just two days to pass a spending bill to avoid shutting down the

government, a closed door meeting of House Republicans late Wednesday night ending with more questions than answers.

(END VIDEOTAPE)

JOHNS: The president has not yet signed a tax bill. He's waiting on some administrative steps on Capitol Hill before it's finished up and sent to

him. We are told he is anxious to sign it and may do so from Mar-a-Lago, Florida over the holiday. Kristie.

LU STOUT: So after this big tax cut win for the U.S. president, he is facing yet another challenge, the shutdown deadline is tomorrow. Can the

GOP come together again and come up with a proposal to keep the government open?

JOHNS: There are a number of issues that they have to work out. And they don't have a lot of time to do so, including some Republicans on Capitol

Hill would like to see funding for the Defense Department for the Pentagon, through the entire of next year, not clear that that's going to happen.

There are also things like the child health insurance plan that needs to be re-appropriated. They have a lot of things, odds and ends, if you will,

that have to be worked out. It is not clear that Democrats are going to help them. So it's a challenge right now.

LU STOUT: And that's an understatement. Joe Johns, reporting, thank you. Right now, people in Catalonia are taking part in a vote to choose a new

government.

Madrid hopes to leave out Catalan politicians who back separatism. The former Catalan president was ousted. He fled the country after he held an

independent referendum last October. And that triggered a political crisis in Spain. Isa Soares has more.

(BEGIN VIDEOTAPE)

ISA SOARES, CNN CORRESPONDENT: Political rivals in Catalonia have been making a last-ditch effort convince voters to back them in parliamentary

elections.

For those parties who have been in a bitter fight for an independent Catalonia, this is their chance to show Madrid, and indeed the rest of

Europe. Theirs is not just a pipe dream. It's a case for the Republican left.

Their leader and candidate Oriol Junqueras here only in spirit is in jail on charges of rebellion, citizen and misused of public firms after

independence referendum in October held in defiance of the Spanish government.

He says the charges against him are unfounded. In his place is his general secretary Marta Rovira, who wants to lift Article 155 under which Madrid

governs Catalonia.

MARTA ROVIRA, CATALAN REPUBLICAN LEFT PARTY: On December 21st, we will go out there to win to free the political prisoners. We will say no to the

repression of the state and Article 155. We will say yes to the republic. We will say yes to a more fair, dignified and free country.

SOARES: Ousted President Carles Puigdemont who is self imposed exile in Belgium is hoping his party can finally bring the truth.

CARLES PUIGDEMONT, FORMER CATALAN PRESIDENT: We will not give up. We will not let the geological confrontation generated by Article 155 make us give

up on the country we are, a free country.

SOARES: The battle won't be an easy one, according to the latest polls, this will be a right and highly contested race. In this battle, the

parties who oppose independence haven't been holding back. Ines Arrimadas, is seen as a champion for Spanish unity has been warning of the risks for

an independent Catalonia.

INES ARRIMADAS, CIUDADANOS PARTY CANDIDATE (through a translator): Everything is at steak because we are risking our passport, we are risking

our children's future. We are risking Catalonia's economic prosperity. A handful of votes can make a difference.

SOARES: Catalonia remains under direct control by Madrid at least until a government is formed. Prime Minister Mariano Rajoy is hoping wt he calls

the silent majority, those who didn't turn out for the referendum the first time around will feel compelled to vote, especially if the Spanish economy

is at stake.

MARIANO RAJOY, SPANISH PRIME MINISTER (through a translator): Tourist numbers are down, sales are down. Companies are growing less. Other

companies are leaving. We have had to lower the growth forecast for the coming year to 2.3 percent.

But if the situation is normalized, we can return if 2018 to growth of more than 3 percent by 2017, creating like in 2017, more than half a million

jobs.

SOARES: But with no standout winner right now, a coalition government may be likely. And that can mean another potentially pro tracked political

mess.

(END VIDEOTAPE)

LU STOUT: And that was CNN's, Isa Soares, reporting. The polls in Catalonia close at 1,900 GMT. I will bring you the latest as it happens

right here on CNN.

[08:25:00] And now to a growing and disturbing trend off the coast of Japan -- the Japanese coast guard says dozens of North Korean fishing boats have

washed up on their beaches, and in those boats, bodies of North Korean fisherman. Ivan Watson, it has raised concern of what is happening inside

North Korea.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN CORRESPONDENT: On Japan's northwestern coast, winter is harsh and the sea unforgiving. This wild shoreline is also the scene of a

disturbing mystery. North Korean boats, sometimes called ghost ships, keep washing up on these beaches.

Look at this, a little fishing boat like this has no business being out in these stormy seas and the men on board, they paid the ultimate price.

The authorities say they found the bodies of four men on this wreck and on this wreck, and on a similar fishing boat, which both washed up here on the

same day.

Hours after we filmed here, Japanese authorities found two more bodies buried under this second wooden boat when they tried to drag it off the

beach. The Japanese coast card detected a record number of close to 100 North Korean ghost ships in 2017.

They have also found dozens of bodies aboard these drifting vessels. Their appearance, all the more striking when you consider Japan is around a

thousand kilometers, more than 600 miles from North Korea.

Japan's coast guard accuses North Korean fishermen of poaching in Japanese waters, sparking hundreds of confrontation like this, this year alone.

Sometimes Japanese authorities find surviving North Korean fishermen on the drifting boats.

But in November, police accuse ten men on this boat of looting a fishing station on a Japanese island. They arrested three North Koreans. In a

small fishing port along the Oga Peninsula, veteran fishermen say it's madness to take such small vessels so far out to sea.

AKIRA FUNATSU, FISHERMAN (through a translation): Only an idiot would fish like this, says Akira Funatsu. The North Korean government must be forcing

them. Aboard this ghost ship, we find fishing nets, a radio, a flashlight in a cupboard.

WATSON: On the day this boat washed up, police also found two bodies nearby. Locals deal with the dead as best they can. The head priest at

this Zen Buddhist temple prays before the cremated ashes of 15 unidentified North Koreans brought here by the municipality.

RYOSEN KOJIMA, BUDDHIST MONK (through a translation): They'll be buried without a funeral, and not according to their religion, he says. I feel so

sorry for them.

WATSON: The sad fact is that for every dead North Korean who washes up here, there are probably many more sailors, who never make it to dry land.

Something must be terribly wrong in North Korea to make a fisherman's catch one worth dying for. Ivan Watson, CNN, Akita, Japan.

(END VIDEOTAPE)

LU STOUT: That is such a chilling report. You are watching News Stream. And still ahead in the program, we'll have more about the man police

believe is behind the Melbourne car attack that injured 18 people, next.

[08:30:00] (COMMERCIAL BREAK)

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

We are learning details about the man police say was behind the Melbourne car attack a few hours ago. Police say he is 32, an Australian citizen, and

of Afghan descent. He has a history of drug abuse and mental health issues. Eighteen people were injured, four critically. Police say right now they

don't believe it was a terror attack.

Two hundred people have now been rescued after a ferry capsized off the Philippine coast. Four people died in the accident. The ferry which is

carrying 251 people overturned in the storm. The coast guard says the boat was not overloaded.

Flames engulfed an eight-story building in South Korea, killing 29 people. Officials suspect that the fire started in a parked vehicle in a garage on

the ground floor and then spread to the whole building. Firefighters rescued more than 20 people who fled to the rooftop.

U.S. President Donald Trump and his ambassador to the U.N. Nikki Haley have threatened to take names if countries vote in favor of a resolution

condemning America's decision to recognize Jerusalem as the capital of Israel. The U.N. general assembly is to begin its session in around an hour

and a half from now.

Let's get you up to date on our breaking news story this hour out of Melbourne, Australia. Police say that the driver of an SUV speeding at

about 100 kilometers an hour deliberately rammed into a crowd of pedestrians at a busy intersection. Eighteen people were injured. Four in

critical condition.

Now the suspect, a 32-year-old Australian of Afghan descent was taken into custody. Another man was arrested as well, a 24-year-old, who was seen

filming the attack. Police now believe he may not be connected to the crash.

Our journalist Sara James joins us once again from Melbourne. Sarah, let's dig into the suspect, the driver of the car. Who is he? What picture is he

offering about why this attack took place?

SARA JAMES, FREELANCE JOURNALIST: Well, we know that he is a 32-year-old man. He has a history of mental problems, a history of drug problems, and

there has been some violence in the past, but nothing like what we saw on the streets of Melbourne today.

So, many people here with a great number of questions about this man. As you said, police do not believe this was a terrorist attack. What happened

was that the 32-year-old suspect was driving an SUV and he came flying down Flinders Street, the street I am standing in the middle of now, and there

are tram tracks on either side of me.

What he did was he drove straight down the tram tracks at about 100 kilometers an hour. And pedestrians were walking back and forth between the

train station and the city center on the opposite side of the street. They really had no chance. They didn't even see him coming. He plowed into the

crowd.

Eighteen people are injured. Four of them in critical condition, including one of them a little child. So all of those families, obviously, our

thoughts are with them tonight as they're undergoing this terrible situation. But exactly why the attack occurred, police really have no

indication at this time, Kristie.

LU STOUT: Terrible situation for the families of the victims who are trying to figure out why did this take place. This incident, this car attack, it

took place a busy intersection in the heart of Melbourne not far from where a very similar car ramming took place earlier this year. Tell us more about

that.

JAMES: Well, that's true, because it was almost 11 months to the day, it was on January 20th that there was another attack just a block -- couple of

blocks in this direction. Very similar kind of scene, Bourke Street, which is a very busy mall, shopping mall area, pedestrian mall, and a car plowed

into a crowd there. Six people were killed.

[08:35:00] A horrifically traumatic event for the city. In that case, the person who had been driving that car, there was a history of mental health

issues. Now in the wake of that attack, what the city did was to put these concrete bollards all over the city to try to prevent this sort of attack.

Melbourne is a very optimistic, happy city so what people did was to immediately begin decorating them in all kinds of ways that they became a

feature of life here. Because this is a city that had a number of incidents and indeed as well separate kind of incident, police foiled what they

believe was an attack planned for new year's eve.

That would have taken place at Federation Square just behind me. And they have in custody someone who they believe was going to attempt a major

terror attack. So this city has been on edge. What the authorities said tonight was that there would be more police deploy. Hundreds of more police

officers will be put out on the streets.

The prime minister, Malcolm Turnbull, said that there will be a coordinated effort between federal officials and security agencies all over the country

to make sure that people feel safe. Because it is a busy time of year, the Australian Open is coming up in another month and of course it's Christmas

and people are out and about, so it is a time of year when they want to ensure that people are safe.

And so they are deploying extra authorities on to the streets and you're certainly seeing that tonight. There is quite a police presence here in the

middle of the night Melbourne time, Kristie.

LU STOUT: Yes, absolutely. Authorities want the people there to feel safe. Wow, people still have to cope and just try to come to terms with yet

another car ramming taking place in that beautiful city. Sara James joining us live from Melbourne, thank you so much for your reporting this day.

Now CNN earlier, we spoke to an off-duty nurse who witnessed this horrific attack. Here's what she told us.

(START VIDEO CLIP)

GABRIELLE BUNTON, MELBOURNE ATTACK WITNESS: So I was just walking out from work and it was terrible. There was a few people on the ground with a few

people around, police had cordoned off the area. It wasn't very nice at all. There were lots of people watching in lots of places. No ambulances

were there then. They just arrived. I was very lucky because I was supposed to be walking through there then. It wasn't very good.

There was -- the people that I saw there weren't moving and from what I was told, the witnesses that were talking to the police there, there was a sign

that this four-wheel drive just flew through that intersection without stopping. The car suddenly hit everyone. You know, it wasn't very nice at

all from what those witnesses were saying.

(END VIDEO CLIP)

LU STOUT: It was an incident that police called an act of evil, an act of cowardice. You are watching "News Stream." And still to come, the 2018

Winter Games are getting close. South Korea is determined to make sure the games stay safe. We will look at how it is pushing security, next.

(COMMERCIAL BREAK)

LU STOUT: All right, broadcasting live from Hong Kong,

[08:40:00] welcome back. This is "News Stream." South Korea has proposed delaying military drills with the U.S. until after the 2018 Winter Games in

Pyeongchang. They say that is aimed at ensuring peaceful games and nothing more but it has raised eyebrows.

Joint drills have long been a sticking point with North Korea, which considers them to be a preparation for war. And it is only 50 days until

those Winter Games begin. And though every Olympics faces security challenges, the North Korean threat is in a category of its own. Paula

Hancocks reports.

(BEGIN VIDEOTAPE)

HANCOCKS (voice over): A SWAT team repels down a high rise building. A drone carrying a bomb is shout out of the sky. The chemical bomb is removed

by a specialist team. Pyeongchang Winter Olympics is preparing for any eventuality. These latest mock drills were the backdrop of the Olympic

stadium.

KIM JAE-YOUL, EXECUTIVE VICE PRESIDENT, PYEONGCHANG ORGANIZING COMMITTEE: We have a government body consists of 19 different authorities, military,

police, intelligence, et cetera. And they're just preparing for all kind of scenarios, including cyber attacks.

HANCOCKS (voice over): Kim Jae-youl is executive vice president of the Pyeongchang Organizing Committee. With North Korea just 50 miles or 80

kilometers away from the games, the focus is on security. But Kim points to the opportunities for more unity, 30 years after Seoul hosted the Summer

Olympics.

JAE-YOUL: The Olympics are much more than just global sporting event because it's the event that brings -- that unite the global citizens

through shared love of sport. We saw this during the '84 games, when the eastern and western bloc countries came together, putting aside their

differences to celebrate Olympic games in Seoul.

HANCOCKS (voice over): North Korean figure skaters, Ryom Tae-ok and Kim Ju- sik, have qualified for the Winter Games. No word from Pyongyang if they would be allowed to compete. North Korea boycotted the '88 games in the

South.

As for the IOC decision to ban Russia for violating anti-doping rules, Kim says those wanting to compete under a neutral flag will be welcomed and

treated fairly.

JAE-YOUL: During the games, we'll have 300 international experts monitoring the whole doping process. Samples that we take will be delivered and

analyzed at the state-of-the-art laboratory in Seoul, which will deliver the result in 24 hours.

HANCOCKS (voice over): For Kim, the main legacy of the Olympics he hopes will be making Pyeongchang a famous winter holiday destination for years to

come and sparking a winter sports movement among the youth of South Korea, creating the athletes of the future.

Paula Hancocks, CNN, Pyeongchang, South Korea.

(END VIDEOTAPE)

LU STOUT: Before we go, we just had to show you what Kensington Palace just released. Some glamour shots, Prince Harry and Meghan Markle's official

engagement pictures. The couple announced their engagement in November and the pair will wed at St. George's Chapel at Windsor Castle on May 19th.

That is "News Stream." I'm Kristie Lu Stout, but don't go anywhere, "World Sport" with Alex Thomas is next.

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[08:45:00] (WORLD SPORT)

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