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NEWS STREAM

China accused of selling oil to Pyongyang; Beijing insists it's not violating U.N. sanctions; N.Y. Times: Trump believes Mueller will be fair; Egypt: at least nine killed in church shooting; Many Puerto Ricans still without power; Liberian football legend George Weah wins presidency; Apple apologizes for iPhone slowdown; Snow sculpture on display at art expo in China. Aired at 8-8:30a ET

Aired December 29, 2017 - 08:00   ET

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


[08:00:00] (COMMERCIAL BREAK)

ZAIN ASHER, CNN ANCHOR: Hello, everyone. I'm Zain Asher, coming to you live from New York. Welcome to News Stream.

(BEGIN VIDEO CLIP)

ASHER: President Trump accused Beijing of allowing oil into North Korea. But China is denying it. Ahead, 100 days since hurricane Maria and Puerto

Ricans are still without power.

CNN went to the island to see how people are coping. And Apple apologizes offering battery replacements to iPhone users just as the company faces a

number of lawsuits.

(END VIDEO CLIP)

ASHER: Welcome, everyone, I'm Zain Asher. Welcome to News Stream. China is under gun once again, accused of violating United Nations sanctions that

were placed on North Korea.

U.S. President Donald Trump says China has been caught selling oil to Pyongyang. It comes after South Korea says it seized a Hong Kong

registered ship doing just that. But China is actually saying, well, it wasn't them and it says it has been enforcing all U.N. sanctions. Here is

our Alexandra Field with more.

(BEGIN VIDEOTAPE)

ALEXANDRA FIELD, CNN CORRESPONDENT: It's been a year of almost constant provocation from Pyongyang, and that has resulted in a raft of resolutions

and sanctions aimed at curtailing, and cutting off their revenue streams and the resources that have fueled that rogue regime and its illicit

activities.

The question now, has North Korea found a way to skirt the sanctions against the regime using an illegal network of ships? Well, that's the

allegation that President Trump is making. And he goes further than that, saying that China is allowing it. That is the bold tweet that the

president sent out in the overnight hours here in Beijing.

It's what officials here woke up to this morning. Officials in Beijing have responded by saying that China is doing its part fully to implement

and uphold all United Nations Security Council resolutions.

HUA CHUNYING, SPOKESWOMAN, CHINESE MINISTRY OF FOREIGN AFFAIRS (through a translator): A series of recent reports do not accord with the facts.

China has always implemented U.N. Security Council resolutions pertaining to North Korea in their entirety and fulfills its international obligation.

We never allow our Chinese citizens and companies to engage in activities that violate the Security Council resolution. If through investigation, it

is confirmed there are violations, China will deal with them in accordance with the law and regulation.

FIELD: As far as back as November, the U.S. Treasury Department suggested that North Korean vessels could be used to make these illegal ship-to-ship

transfers, a way of getting oil that was banned into North Korea.

The State Department now says it's also aware of ship-to-ship transfers that have been made involving vessels from a number of different countries,

including China.

This all came to light again earlier this week when South Korea media outlets published reports saying there were satellite images that showed

Chinese vessels transferring oil to North Korea vessels.

North Korea depends on foreign sources for its soil. It relies heavily on China. This is oil that is needed to fuel the economy and the military

inside North Korea.

Again, the line from officials here in Beijing throughout the week and in response to the allegations from President Trump are that Beijing is doing

everything it needs to do to uphold the sanctions and that, if any companies or vessels are found in violation, they will be dealt with.

More evidence, though, that this illegal shipping network could be taking hold in the seas outside of North Korea, well, South Korea authorities are

now saying that back in November, they seized a Hong Kong-based ship that was leased to a Taiwanese company.

They say that ship left a port in South Korea and then it joined up with the North Korean vessel that transferred oil to. In Beijing, Alexandra

Field, CNN.

(END VIDEOTAPE)

ASHER: All right. So much to discuss here. I want to bring in Robert Lawrence Kuhn who is author of, How China's Leaders Think, and a long-time

adviser for Chinese company. He joins us live now.

So, Robert, thank you so much for being with us. Just explain to us, how does the international community really guarantee that China is living up

to its side of the bargain and really adhering to sanctions?

ROBERT LAWRENCE KUHN, AUTHOR, HOW CHINA'S LEADERS THINK: Well, first of all, there can be no guarantees in such a situation. China is committed to

uphold the U.N. resolution. So it's very important for China to keep the status quo.

President Xi Jinping who has just consolidated power has set forth a huge domestic agenda. He talked about three battles of the recent, annual

central economic conference, in terms of setting the agenda for controlling financial rest which is very serious, controlling pollution and fighting

poverty to eradicate extreme poverty by 2020, these are very big deals.

The economy is slowing. It is being deliberately slowed. All of these things are domestic issues that President Xi Jinping has put on the table.

[08:05:00] He does not want a trade war with the United States. He does not want to have North Korea be as disruptive. China is doing what they

feel is their best to uphold U.N. sanctions, China does not want the collapse of the regime.

There are many significant reasons why in terms of loss of face, in terms of refugees, in terms of China's long history, the need for a buffer zone

between the U.S. allies, South Korea.

So China is not trying to be disruptive, but not doing as much as it might because it doesn't want to put pressure on the regime to where it would

collapse. There is very fine balance.

And this is very difficult to achieve. Now in terms of the oil, what China has said that it will subscribe to in terms of the U.N., it will really try

to do it -- it is really trying to do. Now that said, it is important to realize...

ASHER: So, wait -- so, wait, Robert.

KUHN: ... cannot control all of the...

ASHER: Right.

KUHN: All of the activities that are being done, there is so much smuggling in different phase of drugs, et cetera, so it's very difficult to

do.

ASHER: OK. But, Robert, how do you balance? I mean, you mentioned that China is obviously in a difficult position. But how do they balance not

wanting the collapse of the regime with also upholding sanctions? It's an incredibly difficult thing to do if you are trying to do both.

KUHN: Absolutely correct. And China is hoping that the increasing sanction without triggering a collapse of the regime will encourage the

leader of North Korea to make rational decisions.

China is very unhappy. For the first time you see debate in the Chinese press which is obviously very controlled. And so debate is allowed by

certain academics and others, saying that North Korea is now a liability for China, other disagree.

The point is, the debate shows that China is really trying to walk this fine line. It is very difficult. To understand China is to know that it

is difficult for the central regime to control all of the things that's happening in the provinces and in local areas.

The local government is often doesn't go along with the central government policies on growth, on pollution. They turn off pollution when central

leaders -- central checkers come to see what factories are doing, and then turn on the pollution controls when they come.

And then when they leave, they turn them off again, and each area doing what's in its own interest. When I wrote the biography graves of the

presidents of China 12 years ago, one of the Chinese version, they told me there were 250,000 bogus copies that they intercepted the local publisher.

So if Chinese people who are going to break the law, will do it to the president. Then...

ASHER: We have to leave it there, unfortunately, but thank you so much. We appreciate your perspective, Robert Kuhn, the author of, How China's

Leaders Think, speaking to us live from New York.

All right, the Kremlin has responded to Donald Trump's interview with the New York Times where he made some pretty surprising comments about the

Russian investigation.

Mr. Trump said, it makes the country look bad. This is the Russian investigation. According to Mr. Trump, it makes the country look bad and

it puts the country in a bad position.

He also said that the sooner it's worked out, the better. The newspaper points out, Mr. Trump repeated 16 times that the probe had uncovered no

collusion without Russia -- with Russia rather.

And he said that more than ones, that there was actually collusion between Democrats and Russians. The Kremlin responded by saying, Moscow is still

perplexed by all the U.S. investigations going on and that relations with the United States are a major disappointment.

Mr. Trump also said that he thinks Robert Mueller, the man leading the investigation will be fair. CNN white house correspondent Abby Phillip is

in West Palm Beach, Florida.

So, he talks a lot about that. He talked a lot about this idea that you know, he expects Bob Mueller to treat him fairly. He believes that he will

treat him fairly. What does that actually mean? Does that mean if Bob Mueller doesn't treat him fairly, that Mueller could ends up without a job?

What do you think?

ABBY PHILLIP, CNN CORRESPONDENT: Well, it's unclear whether that means anything at all. I mean, in the past up until this point, the president's

advisers and allies outside of the White House have all suggest that they believe Robert Mueller is not going to give the president a fair shake.

Let me read a little bit of that passage of what he said to the New York Times. He said, there was no collusion with respect to my campaign. I

think I'll be treated fairly. Timing wise, I can't tell you. I just don't know. But I think we'll be treated fairly. The president has not been the

thrilled about this Mueller probe.

[08:10:00] It has clearly agitated him. He's talked about it repeatedly. And he also said one more thing in that Time's interview, which is that, he

believes he can do whatever he wants with respect to the FBI.

A lot of people believe that that left opened the door that he could make a decision about the Mueller probe in the future. However, he saw fit.

The interesting thing about his view of this probe is also about how he thinks the rest of the world views the United States as result of that fact

that his associates are being investigated and this probe has gone on for as long as it has.

He said to the New York Times on that subject, the only thing that bothers me about timing, I think it's a very bad -- it's a very bad thing for the

country because it makes the country look bad. It makes the country look very bad. And it puts the country in a very bad position. So the sooner

it is worked out, the better.

We know the president is very anxious to see this probe come to a close, but at the same time, the Mueller investigation is going on and there's not

a lot of visibility that the White House has or that the president has into the status of that investigation.

The other interesting thing, Zain, about this interview is just how it happened at the president's golf club, not too far from here.

He was having lunch after playing golf with his son and a pro golf player, and sat down for 30 minutes without any White House aides or whatsoever in

the room for this interview and talked at length about a variety of subjects. It's highly unusual.

ASHER: Yes, it's not every day that you get a random, out of the blue, impromptu view with the U.S. president. Abby Phillip, live for us there,

thank you so much. Appreciate that.

I want to turn now to a deadly attack in Egypt. The health ministry says at least nine people have been killed in an attack on Coptic Church there.

I want to get the latest now from Salma Abdelaziz, who report extensively from Egypt.

She joins us live now from Paris. And, Salma, just walk us through what happened. This is not the first time obviously that Coptic Christians in

Egypt have been targeted.

SALMA ABDELAZIZ, CNN PRODUCER: That's right, Zain. Let's start just by painting the scene of this horrific attack this morning in Cairo. The

archbishop of the church has told us that as worshipers finished their Friday morning services, as they were leaving that church, two gunmen

opened fire on the crowd.

Police responded to the gunman. A 15-minute gun battle ensued between them. Nine people were killed in the crossfire, as you said, and one of

those gunmen was killed. The other one is still -- his fate is unknown.

He could possibly be on the loose according to state media. And I want to go back to one of those nine dead was also a policeman. Now we seen social

media video unverified and cannot air it yet. But it appears to match up with these reports.

You see man filming off of himself at the church bellow, you see plain close rather. Police officer firing on what appears to be a gunman wearing

a vest and just beside him, is what looks to be a body.

And you hear the man filming, staying on the camera, is that policeman dead? These are absolutely terrifying, and brazen scenes, gun battle

pursuing in daylight in Cairo. They are terrifying for residents.

But they are particularly concerning for the Coptic Christian community in Egypt. Remember this is a minority group in Egypt. They make up 10

percent of the population.

They say they have been under fire and under threat and they point attacks like this one, to say the state isn't doing enough to protect them, Zain.

ASHER: All right. Such a heart breaking story to wake up to this morning. Salma Abdelaziz, thank you so much, I appreciate that. OK, everyone, you

are watching News Stream.

Liberia is actually celebrating a brands new leader. And he's got more than political credentials to boast about. Up next, George Weah as road

from the football pitch to the presidency. An incredible journey for him and prepare to be wowed by some snowy works of art. We'll take you to

China's famed ice festival, next.

[08:15:00] (COMMERCIAL BREAK)

ASHER: India's prime minister says he is anguished by a deadly fire in Mumbai, through a rooftop restaurant killing at least 14 people. These are

the incredible images out of Mumbai of that blaze.

Most of the dead were women actually who were attending a birthday party. More than 20 people were injured. We still don't know the cause of the

fire. Police have actually opened an investigation against the owners the restaurant and the manager of the restaurant as well.

If they are responsible, they could be held responsible for homicide. And there was actually another tragic fire right here in New York City where I

am. An apartment in the Bronx went up in flames, killing least 12 people, including at least three children under the age of eight, four others are

critically injured.

Mayor Bill de Blasio calls at this city's worst fire in 25 years. It appears the blaze actually started on the first floor of the five-story

building and quickly spread. Again, we still don't know the cause, but investigators are, indeed, looking into it.

All right. We're going to turn out to Puerto Rico because many people on the island are going to be starting 2018, pretty much in the dark. One

hundred days after hurricane Maria struck the island, a lot of people still don't have electricity on this island.

Residents are relying on car batteries and generator to power their homes. I want to bring in Leyla Santiago, who joins us live now from San Juan.

So, Leyla, it's no secret that Puerto Rico is sort of a state-owned power company has been in crisis in a long time, just in terms of crumbling

electricity grid, lack of maintenance, that sort of thing. But really, 100 days without power, there really is no excuse for it.

LEYLA SANTIAGO, CNN CORRESPONDENT: Right. And if you ask any Puerto Rican on this island, depending on a generator, depending on a car battery as you

mentioned, it has been too long.

We are in San Juan right now where the majority of people have power. But when you go into the interior or into the southeastern part of the island,

it's a different story, Zain.

(BEGIN VIDEOTAPE)

SANTIAGO: It's more than just the flip of a switch. Finally, a hint of what life was like before hurricane Maria. After more than three months

without power, Aida (ph) is one of the lucky few who just got power.

UNIDENTIFIED FEMALE: (Speaking Foreign Language)

SANTIAGO: Hot water. I want to take a hot shower. That's what she's excited about, a hot shower. Yabucoa, in southeastern Puerto Rico now has

a massive generator to power its substation.

It's enough to power part of the town, not a permanent solution, not enough to turn the lights back on for all 38,000 people. Yabucoa is always been

known for its agriculture.

Now it's over that area where hurricane Maria came in with a 155 mile per hour wind, knocking out electricity immediately. The mayor said he doesn't

know when power will be restored.

So, he believes they were the first to deal with Maria and they could be the last. Mayor Rafael Surillo was born and raised in these mountains near

the coast. He calls Maria a monster that destroyed them.

MAYOR RAFAEL SURILLO, YABUCOA: (Speaking Foreign Language)

SANTIAGO: He's saying the urban area could get power very soon but this area -- the mountainous area, he says, it could be summer before they see

it, which take note, summer is when the hurricane season begins.

Miles away from town high up in the mountains where the power lines are harder to fix, Cheryl De Jesus (ph) has little hope her home will be back

to normal soon. Maria rushed in through the windows and doors and it ruined more than furniture. It ruined her life.

[08:20:00] For now, new paint is all she can afford to fix any of it. She has no idea when she'll get power back. But I still ask her. (Speaking

Foreign Language), I'm asking her if she thinks it will be soon?

UNIDENTIFIED FEMALE: No.

SANTIAGO: Without power, Cheryl (ph) and her children lost more than the lights. Without power they don't have water. The mayor says the problem,

constant bureaucratic delays.

For a month they had power workers here but not enough materials to actually carry out the work. Mayor Surillo calls this a start. He says

they need more generators, power poles, cables.

The U.S. Army Corps of Engineers admits a shortage of supplies stemming from other natural disasters is part of the reason why it took so long to

get power back to people like Aida (ph). She doesn't have to wash clothes by hands anymore.

Back in town, Aida (ph) will spend tonight in a home overjoyed. Power is the best Christmas gift they could ask for, but for the families up in the

mountains, the sun sets on another night as they wait for their gift to arrive.

(END VIDEOTAPE)

SANTIAGO: And we should note, those children up in the mountains, that mother, they actually have not had power since the day before hurricane

Irma. So they have been without power now for 115 days.

When you talk to the government about power, they will use the 69 percent. Zain, you have heard me say this before, 69 percent reflects generation,

not distribution. So right now, the government of Puerto Rico not giving any indicators as to how people on this island are still without power.

ASHER: For those who are without power, it's certainly going to be a bit of a dismal start to the New Year. Leyla Santiago, live for us there,

thank you so much. We appreciate that. All right.

Some news out of Liberia, football legend George Weah has scored many wins but his latest is certainly unlike any other he has achieved on the pitch.

The former start is set to become Liberia's next president after winning the runoff election. Here is our, Patrick Snell, with more.

(BEGIN VIDEOTAPE)

PATRICK SNELL, CNN CORRESPONDENT: Dancing on the streets in Liberia, supporters of formal football star George Weah celebrate a hard fought

victory over vice president Joseph Boakai in Liberia's presidential election.

The country held a run off vote on Tuesday after neither candidate won more than 50 percent of the vote in the initial ballot in October. This weeks

election was also delayed after claims of fraud were investigated and later dismissed.

Weah was extremely popular with the countries youth who wanted to see change in the countries government, which was criticized for not doing more

to tackle problems like poverty and corruption.

Whether or not the 51-year-old will enjoy success as president is yet to be seen, but he certainly enjoyed plenty on the pitch. Among others, Mr. Weah

played for Monaco, PSG, and AC Milan Goals.

He was African's first and only ballot door winner and was voted African footballer of the year on three occasions. Patrick Snell, CNN, Atlanta.

(END VIDEOTAPE)

ASHER: All right. I want to turn to some tech news. Apple is facing multiple international losses after it admitted to slowing down older

iPhones to extend their battery life.

The company actually issued a rare apology but will have to deal with legal action from California to South Korea. Apple says an upcoming software

update will give you more insight into the health of their iPhone phone battery and has offered to drop the price on replacement battery.

For more on this, I want to bring in tech correspondent Samuel Burke, he joins us live now from London. So, Samuel, Apple is issuing a very rare

apology, just walk us through what this means from potential compensation and also these lawsuit that are pending.

SAMUEL BURKE, CNN CORRESPONDENT: Zain, you and I have covered a lot of tech stories but I've got say that this seems to be the one that got under

people's skin most.

Just hearing what people here in the office were saying as I reported on this, looking on social media, and I think Apple became acutely aware of

this.

What there saying here, they are not admitting any wrong doing. They still say, we were trying to elongate the battery life of these phones. They

just put up a list to remind people, when you are updating to the latest version of IOS on the iPhone 6, 6S, SE, even the relatively new iPhone 7

was getting slowed down.

So Apple said, we were trying the phone didn't shut off, slowing the phone down helped that. But I think they realize that they didn't do this in a

transparent fashion and it really upset a lot of people that this is happening to your phone without them knowing. So things they are going to

do, yes, a battery replacement program, that usually cost about $79 in Apple stores.

[08:25:00] They are going to reduce that price down to $29. Although, Zain, you know, a lot of people watching us in places like Africa, Latin

America as well at CNN Espanol, hearing from people saying, well, I don't have an Apple store in my city, in my state, in my country.

So that can be very difficult for folks. The other thing that Apple is going to do here, is they are going to have a battery health watch. Let's

say in the version of IOS, people can have a better sense of what going on.

So, it think they are correcting some this but for a lot of people, this will be our of reach wile they still have an iPhone that is slowed down and

maybe not access to a new battery, at least not the official route.

ASHER: OK. But, Apple is trying to -- Apple is trying to do something about it, basically.

BURKE: Yes.

ASHER: Another tech story that we are following, there's a U.K. lawmaker who is basically threatening sanctions over social media companies who are

not more forthcoming about Russian interference in U.K. elections and Brexit as well, just catch us up to speed. What more can you tell us about

that?

BURKE: So often we talk about the Russian investigation in the United States over on your side of the pond, Zain. But on this side of the pond,

there is also full pledge investigation going on into Russia meddling around U.K. elections on Facebook and Twitter.

At CNN Money, we did an investigation, actually found that some of the very same Twitter accounts that were used in the United States, that Twitter

says was linked to Russia, well, some of those weren't even changing their names and their personas, also tweeting about Brexit, for example, and

other U.K. elections.

So we found that evidence. We turned it over to the U.K. parliament. They wanted to get a clear picture. They have been asking Facebook and Twitter.

OK. So CNN Money found these accounts. How many were there? How many people were doing this? What more can you tell us about where they

originated from and so far, the parliament is saying, we're not getting any information.

So I just want to read you what the member of parliament is heading up this investigation is saying quote so far, Facebook and Twitter have fail to

comply with my committee's inquiry into fake news, consistently dodging their social responsibility to investigate the spread of fake news and use

the fake accounts on their platform.

So they could face sanctions. We'll see what exactly that means. I can't imagine them turning off the switch for Facebook or Twitter but maybe some

actually fine, they might have to pay here.

ASHER: Yes, I can't imagine them turning off the switch either. But yes, you mentioned fines, potentially. All right, Samuel Burke, reporting live

from my side of the pond, I'm on your side of the pond, I'll see you soon, hopefully. OK.

BURKE: Happy New Year.

ASHER: Happy New Year. Every year, China unveils incredible sculptures at the Harbin ice festival. And this year, organizers added a new element

sure to dazzle visitors. Here is our Amara Walker with more.

(BEGIN VIDEOTAPE)

AMARA WALKER, CNN CORRESPONDENT: A dazzling 3d light show complete with polar bears, tigers and melting ice effects debuts in Harbin, China. The

lights adorn a model of Harbin's Saint Sophia Cathedral made completely of snow.

This is the first time a 3d light show has launched at the 28-year-old international snow sculpture art expo known as a Global Leader of Snow

Sculpture Art.

The main sculpture this year is shaped as a skier with angel wings atop a snow mountain anticipating the Beijing Winter Olympics in 2022.

The annual exhibit is a main feature at the famous Harbin ice festival, luring curious sites from all to the globe to a series of enchanting winter

activities, competition and glittering light shows. There are penguins that slide, Siberian tiger sightseeing and palaces fit for a snow king.

A wonder land saturated with rainbow colors sure to bewitch any adventure seeking traveler willing to brave the cold of the frosty months ahead.

Amara Walker, CNN.

(END VIDEOTAPE)

ASHER: All right. My friends, that was News Stream. I'm Zain Asher. World Sport is up next.

END