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Fireworks To Usher In 2019; The Shutdown Hangs On The Budget Battle For The President's Proposed Border Wall And Mr. Trump Seems Unwilling To Compromise; Surveillance Video Showing Staff Appearing To Abuse Migrant Children At A Shelter In The U.S. State Of Arizona Could Lead To Criminal Charges; American Citizen Has Been Arrested On Suspicion Of Spying in Russia; World Leaders Are Reflecting On The Last 12 Months; , Kim Jong-Un Has Seemingly Transformed His Image This Year From A Nuclear Tyrant To Something Of A Global Statesman. Aired: 8-9a ET
Aired December 31, 2018 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KRISTIE LU STOUT, HOST, CNN: ... Australia where residents and revelers there are preparing to count the clock down to 2019, live pictures from
Sydney, Australia and it is soon be midnight ushering a new year there in Sydney, let's listen in.
Look at that incredible pyrotechnic display in Sydney Harbor. They just rung in the New Year past midnight in Sydney, Australia. Sydney - the
folks there lighting the way to 2019. Happy New Year.
Just a couple of short hours ago, Auckland, New Zealand rang in the New Year, the first major city to enter 2019.
I'm Kristie Lu Stout here in Hong Kong and we are just a few hours away - four hours away from 2019. Welcome to "CNN Newsroom." Celebrations like
those will be felt across the world as the hours go on, but there will be no reason to toast this New Year's Eve for hundreds of thousands of U.S.
Federal workers as the partial government shutdown, that's our top story this hour, that enters its tenth day and there appears to be no end in
sight for the some 800,000 people working without pay or not working at all. This is a tough way to start the year.
Now, the shutdown hangs on the budget battle for the President's proposed border wall and Mr. Trump seems unwilling to compromise. CNN's Boris
Sanchez is live for us at the White House. He joins us now, and Boris, how much is President Trump willing to yield on the border issue and what does
he really mean when he talks about the wall?
BORIS SANCHEZ, WHITE HOUSE CORRESPONDENT, CNN: Yes, the question of what he means by wall is one that we're still trying to answer. The President
just weighed in on that. More on that in just a moment, but as far as how much he's willing to budge, not much.
Sources close to the President telling CNN that he is not willing to sign any bill that would reopen the Federal government if it does not contain
more than the $1.3 billion that Democrats have been offering for border security. That was an agreement between Republicans and Democrats several
weeks ago that was put into place that the Senate voted on and even passed before the President ultimately decided that he would not sign off on it.
He demanded $5 billion to fund his border wall. Democrats have said they will not offer the President any funding at all.
Now, on the question of what he means by wall, the outgoing Chief of Staff, John Kelly, spoke with the "L.A. Times" this weekend and he is not going
out without making some headlines here. Take a look at what John Kelly told "The Times." In part he said, quote, "To be honest it's not a wall.
The President still says wall and oftentimes frankly, he will say barrier or fencing. Now he has tended towards steel slats, but we left a solid
concrete wall early on in the administration."
Here you have the outgoing Chief of Staff essentially saying that the administration left behind the idea of a concrete wall some time ago and
we've heard this from multiple officials just this weekend. You had Kellyanne Conway one of the top advisers to the President on CNN talking
about the meaning of the word wall, saying that right now the shutdown is basically hanging on or ongoing because of a semantics game between
Democrats and Republicans, whether it's a wall or a barrier.
I can tell you the President just weighed in and made his feelings known on Twitter. He writes, quote, "An all-concrete wall was NEVER ABANDONED," all
caps there for emphasis, "As has been reported by the media. Some areas will be all concrete, but the experts at Border Patrol prefer a wall that
is see through thereby making it possible to see what is happening on both sides. Makes sense to me."
[08:05:07]
SANCHEZ: So you have some surrogates sort of softening the President's definition of what wall means and you have the President here saying that,
no, he means an actual concrete barrier with Mexico on the southern border of the United States, Kristie.
LU STOUT: Yes, we need some proper definitions here and more concrete understanding of what the President really means. Boris Sanchez reporting
live from the White House, thank you.
SANCHEZ: Thanks so much.
LU STOUT: Surveillance video showing staff appearing to abuse migrant children at a shelter in the U.S. State of Arizona could lead to criminal
charges. Dianne Gallagher is in Youngtown, Arizona and we want to warn you, she's going to show us video from inside the facility, you will find
disturbing. Dianne, joins us now.
And Dianne, even though these videos are blurred, they are so difficult to watch. What do they reveal about how these children, these migrant
children, are being treated there?
DIANNE GALLAGHER, CORRESPONDENT, CNN: And Kristie, what makes them so difficult to watch is because these kids are allegedly brought to these
facilities to keep them safe while trying to find sponsors for them. And you think about the journeys they've gone on.
These videos apparently took place inside this now closed facility that was called Hacienda Del Sol. It happened back in September, and again, it is
upsetting. They were blurred and edited by the Arizona Department of Health. They were obtained by the "Arizona Republic," a newspaper here
through an open records request.
You can see workers dragging and pushing and pulling on the children. They appear to be in these angry confrontations with them and these are small
children you're seeing involved in this here. Now, as far as what it says about the way that migrant children are treated in these facilities, we can
only attest to what we see with these three children in these videos right now, Kristie, but it is disturbing enough that law enforcement is now
turning it over to the legal system here, to the county attorney, to determine whether or not criminal charges need to take place.
Now, I can tell you that a source who is informed on decisions that were made after the situation in regards to Southwest Key, the ownership - the
company that runs this facility, said that at least two different employees were fired and other disciplinary measures were taken. That source also
says that Southwest Key self-reported this incident to the state back in September.
But, again, it is disturbing to see because no child should be treated in this manner, especially children who have been through so much like these
have.
LU STOUT: Absolutely, deeply disturbing video there. Dianne Gallagher reporting live for us from the U.S. State of Arizona. Dianne, thank you.
The U.S. Senator Lindsey Graham says he plans to hold hearings to investigate the deaths of two migrant children who died while in U.S.
custody. After a Sunday lunch with President Donald Trump, Graham says he also spoke with the President about another controversial topic, the
withdrawal of U.S. troops from Syria.
This comes after the Trump administration prepares for the transition between the outgoing Secretary of Defense James Mattis and the incoming
acting Secretary, Patrick Shanahan.
Barbara Starr is at the Pentagon, she joins us now. And Barbara, exactly what did Senator Graham say on the Syria withdrawal plan and how should we
interpret it?
BARBARA STARR, PENTAGON CORRESPONDENT, CNN: Well, Lindsey Graham is a senator here in the United States who is a close ally of President Trump,
but he has been very adamantly opposed to the President's plan of about several days ago when the President announced he was ordering the rapid
withdrawal of U.S. forces, about 2,000 of them, from Syria. Senator Graham has been very concerned about that.
He met with the President yesterday at the White House and when he came out, he had a rather startling assessment of what might - might happen now.
(BEGIN VIDEO CLIP)
LINDSEY GRAHAM, U.S. SENATOR, SOUTH CAROLINA, REPUBLICAN: He promised to destroy ISIS, he's going to keep that promise. We are not there yet, but,
as I said, today, we are inside the 10-yard line and the President understands the need to finish the job.
So I think we're in a pause situation, we are reevaluating what's the best way to achieve the President's objective of having people pay more and do
more.
(END VIDEO CLIP)
STARR: Reevaluating - it does seem to suggest that Senator Graham believes the President has agreed to slow down that rapid withdrawal that he had
ordered from the White House, but we have not heard from the President yet, so still at this hour, it remains a bit unclear about what will happen next
-- Kristie.
LU STOUT: And this is such a critical moment, Barbara. And during this moment, how is the Pentagon preparing for this leadership transition as
Patrick Shanahan takes the reins?
STARR: Well, in about 16 hours or so from now, there will be a telephone call made, Secretary Mattis, his last day in office, has - will arrange -
there will be a phone call to Patrick Shanahan, the Deputy, who will become the ...
[08:10:10]
STARR: ... acting at midnight here in the United States in Washington. It's pretty much a set piece. They do it not just as a ceremonial transfer
of power, but because the Secretary of Defense in the United States is in the chain of command.
So at midnight, the phone call will happen, neither man has to be in the Pentagon for it to take place, and then the White House will be notified
officially that Patrick Shanahan is the acting Secretary of Defense and has all the authorities in that office -- Kristie.
LU STOUT: Taking the helm at such a crucial time. Barbara Starr reporting live from the Pentagon. Thank you. And now to a developing story out of
Russia where an American citizen has been arrested on suspicion of spying. Let's go straight to our Matthew Chance in Moscow, and Matthew what more
can you tell us about Paul Whelan and why he was arrested by the FSB?
MATTHEW CHANCE, SENIOR INTERNATIONAL CORRESPONDENT, CNN: Yes, the FSB, of course, is the main intelligence organization in Russia, concerned with
counterespionage. They released a short statement earlier today saying that a U.S. citizen has been caught spying in Moscow and detained. It
named him as Paul Whelan, saying he was arrested in Moscow, the Russian capital, on the 28th of December, on suspicion of espionage.
At the moment, there has been another statement as well from the Russian Foreign Ministry. They gave his middle name as Nicholas, so it's Paul
Nicholas Whelan, and they said that the United States Embassy in Moscow has been notified about that arrest.
We've reached out to that embassy, but they've said they have got no comment for us at this stage. And so we are looking to the State
Department or the authorities in the United States to see what confirmation they can give us about the circumstances around this arrest because we've
got nothing else here that the Russian authorities are giving us.
What we do know, though, is that the last couple years have been dominated by allegations of spying by Russia and the United States between these two
countries and with the west in general, and this is just, you know, the latest iteration of that. I think perhaps, the most recent example has
been the high profile case of that Russian gun lobbyist in the United States, Maria Butina who a couple weeks ago pleaded guilty to being an
agent of the Russian state and attempting to influence conservative groups, including the gun lobby and the Republican Party in the United States.
She faces six months in prison for that in the United States. If Paul Whelan is convicted, he could - he looks at the prospect of 10 to 20 years.
So it's a much more serious allegation that's been posed against him, Kristie.
LU STOUT: Yes, but as you point out, this is the latest wrinkle in a larger spy war between Russia and the west. Matthew Chance reporting live
for us from Moscow, thank you so much.
And staying in Russia, there is a frantic rescue effort under way at an apartment building in the city of Magnitogorsk. The government says a gas
leak caused a deadly explosion there. At least four people were killed, 68 still missing. We will bring us pictures for you. The blast, it caused
part of the high-rise building, as you could see there to collapse. We will continue to monitor the scene and bring you updates as they come in.
Now, an explosion at a shopping mall in the Philippines has killed at least two people and injured 23. The suspected IED blast happened in Cotabato
City on the island of Mindanao, an area long plagued by terrorism and arrest. The mayor of the city called the incident quote, "an act against
humanity" as people were preparing to mark the New Year.
And staying in the Philippines, at least 68 people there have died in heavy rains, flooding and landslides after tropical depression Usman ripped
through parts of the country. Nearly 130,000 people have been affected by this storm so far.
Opposition parties are challenging Sunday's election results in Bangladesh. They claim that the vote was rigged and demand a new election be held.
Nikhil Kumar has the latest.
NIKHIL KUMAR, NEW DELHI BUREAU CHIEF, CNN: Kristie, Bangladesh's Prime Minister, Sheikh Hasina has won a record third consecutive term in office
according to the results of Sunday's National Election, but the opposition is crying foul, calling for a rerun of the contest amid allegations of vote
rigging.
Officially Hasina's Awami League political party won at least 288 of the 300 seats up for grabs in this weekend's poll, which saw at least 18 people
killed in election-related violence.
Her main opposition, an alliance led by the Bangladesh Nationalist Party won a mere seven seats out of the 299 for which results have been declared
by authorities. Now, there are already questions about the credibility of the poll before this weekend.
Days before voting, Human Rights Watch warned about a, quote, "repressive political environment" in Bangladesh that it said was undermining the whole
process.
[08:15:04]
KUMAR: Bangladeshi authorities were accused of trying to stifle dissent and criticism in newspapers, on TV and even on social media, charges Hasina
has denied, and, today after the results started coming out, the main opposition alliance said they wanted a fresh vote and accused Hasina's
party of stuffing ballot boxes. But there is no sign that a new vote will happen.
Already, Narendra Modi the Prime Minister of key Bangladeshi ally, India has congratulated Hasina on what Delhi said was a quote, "decisive
victory." For Hasina's supporters, the result is vindication for two terms of rule during which Bangladesh's economy has boomed even as authorities
have been accused of centralizing power and clamping down on dissent.
On the other hand, her critics worry about the government centralizing even more power now that it's secured a third term. Millions inside Bangladesh
and beyond will be watching to see how it all plays out -- Kristie.
LU STOUT: Nikhil, thank you. Now, we are on the eve of a brand-new year. World leaders are reflecting on the last 12 months and the year to come,
including Vladimir Putin, who had a brand-new message for Washington. Plus, Kim Jong-un seemed to show his softer side in 2018 and now the world
is waiting to see what the North Korean leader's message will be for 2019.
(COMMERCIAL BREAK)
LU STOUT: Welcome back. Now world leaders are ushering in 2019 with their hopes for the year to come, among them the Russian President, Vladimir
Putin, in a letter to President Trump, Mr. Putin says that he is, quote, "open to dialogue with the U.S.," adding that Russian-American relations
are essential to international security.
The letter comes after President Trump canceled a planned meeting with his Russian counterpart at last month's G-20 meeting after Ukraine said Russian
forces opened fire on its naval ships.
And Chinese President Xi Jinping up has wrapped up his address. In it, he says that the world is facing a period of a major change never seen in a
century and that his country will defend its sovereignty and security. He also thanked Chinese workers and outlined 2018's achievements and fresh
goals for next year.
North Korean leader Kim Jong-un has sent a warm personal letter to South Korea's Moon Jae-in sharing hopes for peace and prosperity on the Korean
Peninsula. According to Mr. Moon's office, Kim said the three face-to-face meetings between the two leaders showed a bold effort to overcome the long
standing Korean conflict. On his social media account, President Moon said, "If we meet together with sincerity, there is nothing we cannot
achieve."
Now, Kim Jong-un has seemingly transformed his image this year from a nuclear tyrant to something of a global statesman. Now, as Will Ripley
reports the world is waiting to see what Kim has in store for 2019.
[08:20:02]
(BEGIN VIDEO TAPE)
WILL RIPLEY, SENIOR INTERNATIONAL CORRESPONDENT, CNN (voice-over): North Korean leader Kim Jong-un's surreal year began seemingly on the brink of
war, battered by sanctions over his nuclear program, a defiant Kim refused to back down, ordering the mass production of nuclear weapons in his New
Year's speech, warning that he was not afraid to use them.
The speech came weeks after Kim test-fired an intercontinental ballistic missile, a weapon believed to be capable of striking the mainland U.S. It
was an ominous message to President Donald Trump. After months of "fire and fury" rhetoric and the growing threat of military conflict...
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Rocket man is on a suicide mission for himself.
(END VIDEO CLIP)
RIPLEY (voice-over): But the 2018 Winter Olympics in South Korea provided a rare diplomatic opening. Kim sent his younger sister with a message to
South Korean President Moon Jae-in, "Let's talk."
In April, the first inter-Korean summit in more than a decade, a made for TV meeting and a chance for Kim to project a surprising new image, from
dangerous dictator to smiling statesman.
Until this year, the 30-something leader had never even met another head of state. Almost overnight, a whirlwind of diplomacy, from smiling photos
with Chinese President Xi Jinping to this historic summit in Singapore, the first ever meeting between a sitting U.S. President and North Korean
leader.
(BEGIN VIDEO CLIP)
TRUMP: I was really being tough and so was he, we would go back and forth. And then we fell in love, okay? No, really, he wrote me beautiful letters.
I just showed a letter ...
(END VIDEO CLIP)
RIPLEY (voice-over): But letters can only go so far. Denuclearization talks have stalled. Tensions with the U.S. are rising. And North Korea is
believed to be quietly expanding its nuclear program.
All of it raising the stakes for a planned second summit with Trump and Kim early next year. In 12 short months, a surreal transformation for Kim,
from global pariah to the global spotlight, all without giving up a single nuclear weapon.
But he will begin 2019 locked in a diplomatic standoff with the U.S., sanctions still crippling North Korea's economy. Kim Jong-un's biggest
test may lie ahead. Will Ripley, CNN.
(END VIDEO TAPE)
LU STOUT: And as 2018 comes to an end, South Korea is also saying goodbye to the use of disposable plastic bags in supermarkets. The new law takes
effect on January 1, it will affect up to 13,000 stores. Supermarkets will be required to offer customers an alternative like paper bags or reusable
cloth bags.
You're watching "CNN Newsroom" and up next, New Year in New York City.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Five, four, three, two, one. Happy New Year.
(END VIDEO CLIP)
LU STOUT: The countdown to the legendary Times Square countdown is well under way. Miguel Marquez is very much keeping his eye on that iconic
crystal ball and the preps.
MIGUEL MARQUEZ, CORRESPONDENT, CNN: Hi, New York, New York, a city so great they had to name it twice, they are preparing for the big party. We
will be right back with all of the details about those preparations for that massive celebration.
(COMMERCIAL BREAK)
[08:25:00]
LU STOUT: And with just hours left in 2018, the city that never sleeps is making the most of every minute as it prepares for the iconic ball drop
ceremony on Times Square.
Organizers estimate that more than one billion people around the world will watch the New York ceremony and two million will attend the party on the
Square. Our CNN's Miguel Marquez is following the preparations on the ground. He joins us now. And Miguel, how is the city, especially NYPD,
getting ready for the big celebration?
MARQUEZ: Oh, gosh, it is a lot, a lot of organization and getting it all together. They are already starting to sort of arrange things here in
Times Square and they have for some time.
All the way at the top of that building, let me show you, that's the focal point for everything, that's the pole that the ball actually drops down,
but they are starting to prepare. They are looking at maybe as many as two million people being in this area, they will have it all blocked off, you
will need to go through magnetometers to get in. There will be bomb sniffing dogs, the bomb squad, there will be - there's no alcohol, no big
bags, no umbrellas, no coolers, no big packages allowed, it doesn't sound like much of a party, does it?
And then those pens that they move all of the people into to enjoy the festivities here, those open in the next couple of hours, but once you go
into those pens, you can't get out. Well, you can get out, but then you can't get back in. So if you're going to do it, you better have a darn
good bladder - a bladder of steel or you better have a restroom plan because it is a long time to sit in there and wait for that ball to drop.
One other thing that they are going to have this year that they have never had before is drones. Drones.
(BEGIN VIDEO CLIP)
JOHN MILLER, DEPUTY COMMISSIONER OF INTELLIGENCE AND COUNTERTERRORISM, NYPD: We will be deploying NYPD drones for over watch. We haven't done
that before, but that's going to give us a visual aid and a flexibility of being able to move a camera to a certain spot with great rapidity through a
tremendous crowd.
(END VIDEO CLIP)
MARQUEZ: Now, if somebody actually brings their drone here to get pictures of the crowd, they are going to have anti-drone technology as well. They
will be able to mitigate them or bring them down somehow, they are not saying how.
All of that said, the biggest issue may be today the weather. It's not so cold, I'm not even cold right now, only in a sweater, but the rain, it's
meant to start raining later this afternoon right through the New Year.
A ton of confetti and lots of rain, I'm smelling a disaster, like it's just plastered to people's faces. It is going to be interesting to watch -
Kristie Lu.
LU STOUT: Yes, it will make for some great Instagram, some pictures. Precautions will be taken, but there will be a party, an epic one at that.
Miguel Marquez, reporting live for us from Time Square. Miguel, thank you.
MARQUEZ: You got it.
LU STOUT: Now, you can ring in the New Year with CNN. CNN New Year's Eve with Anderson Cooper and Andy Cohen, it starts Monday 8:00 p.m. Eastern,
9:00 a.m. in the morning here in Hong Kong. They will be, yes, live in Times Square in New York.
Thank you for watching "CNN Newsroom." I'm Kristie Lu Stout in Hong Kong. I will be back with the headlines in just a moment.
(COMMERCIAL BREAK)
[08:30:00]
LU STOUT: Hello, I'm Kristie Lu Stout and this is "CNN News Now." Just half an hour ago, Australia ushered in 2019 with this - a dramatic and
beautiful display in Sydney Harbor.
Two hours earlier, Auckland in New Zealand was the first major city to see in the New Year. An next, to about an hour and a half from now, we will
see the New Year being rung in in Japan and South Korea.
Now, Russia has detained an American citizen on suspicion of spying. The Russian Federal Security Services says the man's name is Paul Whelan and
that he was arrested Friday in Moscow while, quote, "carrying out an act of espionage." No details yet on exactly what Whelan allegedly was doing.
Russia's state media reports that Vladimir Putin has arrived at the scene of a deadly gas explosion in Southern Russia. At least four people were
killed when the blast shook a high-rise apartment building and crews are searching through the rubble for dozens of people who are still missing.
And that is your "CNN News Now." "Destination: Budapest 2" is next.
(BEGIN VIDEO TAPE)
NEIL CURRY, SENIOR PRODUCER, CNN (voice over): Budapest, capital of Hungary. A city of 1.8 million. Full of bubbling bath houses, grandiose
architecture, paprika markets and landmark bridges crossing the river Danube.
Once two separate cities of Buda and Pest, Budapest was united as one in the 19th Century. Pest or Pesht as the Hungarians say sits on the flat
side of the river. Buda is the hilly part on the west side. Together they form one of the ten largest cities in the European Union.
Thirty years after the fall of communism, the capital is booming. Attracting more tourists every year, and at Christmastime the city is
glowing. People from all over the world come to the capital.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: In Europe, we know that Budapest is very important for Christmastime and for shopping for Christmas.
(END VIDEO CLIP)
UNIDENTIFIED FEMALE: Markets here are really beautiful because it's real artisanal things, so you see that people make the things that they are
selling.
UNIDENTIFIED MALE: The level of the market is very high. There is only Hungarian doing only handmade products. All of the creators and very big
difference here.
(END VIDEO CLIP)
CURRY (voice over): There are Christmas markets all over the city. Borshmati (ph) Square is the oldest, biggest and most spectacular and is
renowned for its seasonal food stalls. Best sellers are the Hungarian favorites, roasted chestnuts, chimney knee bread with a coat of cinnamon
and sugar, or langos, a bread dough deep fried in oil topped with pretty much anything.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: And this is the best topped with paprika ...
UNIDENTIFIED MALE: This is the most traditional Hungarian desserts and we put it on the trees and the main product is the marzipan with filled
something. This is the plain marzipan one, this is covered with chocolate.
(END VIDEO CLIP)
CURRY (voice over): The Christmas markets are open from November all the way through to New Year's Day.
[08:35:06]
CURRY (voice over): But there's no Christmas in Budapest without classical singing and dancing.
The Hungarian National Ballet is in its final rehearsals for the most popular show of the, "The Nutcracker."
(BEGIN VIDEO CLIP)
TAMAS SOLYMOSI, ARTISTIC DIRECTOR, NATIONAL BALLET: We cannot sell more tickets because it's always sold out. It's an invasion and they are buying
and coming which is good news, that's why we have a "Nutcracker" tsunami in December. We have 24 performances. Budapest really wants "Nutcracker" and
they cannot give enough.
(END VIDEO CLIP)
CURRY (voice over): On the same stage, the Hungarian State Opera will be performing a classic Italian opera directed by an up and coming stage
director. This will be an almost purely Hungarian production.
(BEGIN VIDEO CLIP)
VASILY BAKHATOV, STAGE DIRECTOR: It's a rare thing when the State Opera or any opera can cover the whole cast of such a difficult and big opera like
Fanciulla del West with their own singers. The music story and the theater story of Budapest is quite long and deep. You know, I can name you now at
least three or four great stage directors who are working now around the world.
(END VIDEO CLIP)
CURRY (voice over): The Hungarian government is investing heavily to secure the future of the opera and ballet. The 134-year-old opera house
will remain closed until 2020 while the entire building receives a brush up or complete renovation.
The opera's chief engineer guides us around the construction site for a glimpse of the future. The centerpiece will be a brand-new stage with
state of the art stage machinery. To handle the most challenging scene changes and special effects.
(BEGIN VIDEO CLIP)
ANN JOSZA, CHIEF ENGINEER, HUNGARIAN STATE OPERA: If you look down, it's 40 meters deep. It is the biggest adventure in my life because a
renovation of the Opera House, it's in every 30, 40 years. So I am very lucky that I can be a part of it.
(END VIDEO CLIP)
CURRY (voice over): And because the State Opera needs more space, the government has purchased this vast industrial site, an abandoned train
repair station from the 19th Century. The Opera is investing close to $70 million to build an all-inclusive facility with pre-rehearsal stages.
(BEGIN VIDEO CLIP)
JOSZA: You can see from here, this will be the auditorium part and here will be this flexible sitting system with 400 seats. This will be the
orchestra pit for 100 musicians. The main goal for this theater is that we can rehearse all of our performances here. It will be much easier and we
will be much flexible that we will have here this three stages with the same size as the Opera House.
(END VIDEO CLIP)
CURRY (voice over): The new building will also feature a large storage hall for costumes, set designs, props and technical equipment, and a
costume design studio for 45 dressmakers. Everything to cater to the needs of a modern opera and ballet production.
(BEGIN VIDEO CLIP)
SYLVESZTER OKOVACS, DIRECTOR, HUNGARIAN STATE OPERA: If you want to play operas and ballets, you know, really high quality, you need this rehearsal
rooms and, believe me, we have nothing, we have only two stages in our two theaters and we would like to go up to the first line of the European opera
culture, the European quality, so we need it.
(END VIDEO CLIP)
CURRY (voice over): The State Opera is planning to open the new facility next year, adding to the high notes of Budapest's cultural scene.
(COMMERCIAL BREAK)
[08:40:31]
CURRY (voice over): Hero's Square, the centerpiece of Hungary's biggest birthday party. The state celebrated its millennium in 1896 by creating
monuments, parks and grand buildings where festivals were staged across the country.
Construction projects that significantly changed the face of Budapest. Viewing terrace, Fisherman's bastion was among the developments. Today,
it's one of several sites in the city granted UNESCO World Heritage status and remains one of Budapest's top tourist attractions.
Among the most ambitious and expensive projects of 1896 was the construction of the Millennium Underground Railway. Completed within just
two years, it was originally designed to take the masses of visitors to the festival grounds on the outskirts of the city.
It was the first electric underground railway in mainland Europe and after London and Istanbul, the third oldest worldwide. The Metro helped cement
the city's reputation as a prominent European capital.
The original line number one is still running in the same tunnels that were built more than 120 years ago.
(BEGIN VIDEO CLIP)
ERZSEBET PASZTOR, HEAD OF CORPORATE RELATIONS, BKV: People in Budapest love this Metro, just as foreign tourists like it and love it because it
has a very special atmosphere. Then you enter to a station, you can inhale the air of the history.
(END VIDEO CLIP)
CURRY (voice over): Today, a glimpse of that history is captured by an underground museum. Built in a disused tunnel, the exhibits including
three original cars from the Metro's maiden year. As the first trains began running beneath the city on; the surface a new building was being
inaugurated which would become one of its most recognizable landmarks, the Budapest Parliament.
It took around a thousand people 17 years to complete the building. Their endeavors resulted in a magnificent political palace, the third largest
Parliament building in the world with almost 700 rooms and 20 kilometers of stairs, also recognized as a world heritage site, there's no bigger
building in the whole of Hungary.
(BEGIN VIDEO CLIP)
ILDIKO JAMBOR, PARLIAMENT TOUR GUIDE: I am Ildiko Jambor, I am an official tour guide here in the Hungarian Parliament and I will take you on a very
exclusive tour. Please come with me.
Here is the grandstand of the Parliament which is the nicest, widest and most decorated one. It used to be the Royal stockade. Even today, when we
receive an important delegation, the main gate is open.
The windows of the main stockade were taken off from the place to hide them in the basement before the bombings of the Second World War.
We are entering now the Dome Hall which is the structural center of the building and also the place where we have four original coronation symbols
of Hungary exhibited. They are always guarded by the guards of the crown. They are soldiers. They form part of a very special use of the Hungarian
Army and at night, they stay here, too.
[08:45:06]
JAMBOR: In the center you can see the Holy Crown. It was used as ceremony crown for more than 50 Kings (inaudible). And here, you can see the big
chandelier of the head. The biggest chandelier has 205 bulbs.
It is really rare to get into this room because normally, it is not included in normal visits of the tourists and Hungarian visitors either.
It is a very special day that we are led to visit the Hungarian Prime Minister's meeting room, too. Well, I have been here only twice, to be
honest and when I visited the room, this was his seat.
We have just arrived to the Chamber of our Parliament where the members do have their sessions. Currently, we have 199 members and they work here in
this room.
It is a unique masterpiece. Actually, I believe that this is the nicest building we have in the whole country.
(END VIDEO CLIP)
CURRY (voice over) Christmas cheer is gathering pace in Budapest. The festive activities include sprinting Santas, and a rather more graceful
winter past time, at least for experienced skaters.
One of Europe's largest outdoor ice rinks can be found right here at Hero's Square. Speed skating hasn't always been a popular sport in Hungary, but
that may be about to change.
In February, the Hungarian short track team stunned the rest of the field when they won Olympic gold in the 5,000 meter relay in Pyeongchang. It was
Hungary's first ever gold of the Winter Olympics.
We've booked Budapest's iconic rink to share time on the ice with the Liu brothers who were part of the golden team.
(BEGIN VIDEO CLIP)
SANDOR LIU, OLYMPIC SPEED SKATING CHAMPION: I remember when I was - when we were little when we first started skating here, I think it was here.
SHAOANG LIU, OLYMPIC SPEED SKATING CHAMPION: We used to come with the family and our dad, I just kind of remember our dad was so like fancy on
the ice, we were just so intrigued.
SANDOR LIU: He was a show-off.
SHAOANG LIU: Yes, he was trying to show off every time. He was so funny.
SANDOR LIU: When we started in 2005, it wasn't really well known, you know, and we didn't have like a really high level athletes, we never had
Olympic champions. We have to build this whole sport. So, yeah, we choose skating and we found out that short relay speed skating, we never heard
about it, and we tried it and we loved it.
SHAOANG LIU: So it is so strange like why the blade is so long and why it's so thin and so sharp. So it was all kind of like a futuristic stuff.
I think it was so weird.
SANDOR LIU: The blade is much longer and you have to cross. We wanted to be Olympic champions. I think we were really lucky because our father in
Chinese and mom is Hungarian and just getting two cultures and like learning from two different worlds and appreciate a lot of things and
trying to be there like every day at the training at 7:00 a.m., not late and just like doing your maximum. Oh, my god, we worked so hard.
SHAOANG LIU: It looks so easy on the ice, but it's not, it's pretty hard.
SANDOR LIU: When I was little I was always dreaming if I win an Olympic gold medal, I was just like going to cry and just like couldn't stand up,
just like crying on the ice like a baby. I couldn't cry. Like no one - I think no one cried in the team.
SHAOANG LIU: We really tried.
SANDOR LIU: We actually tried to cry because it was so nice.
SHAOANG LIU: I was just like holding my coaches.
SANDOR LIU: Every time when he's racing, I'm more nervous than on my races. But I think it's a really nice thing to have your brother next to
you at a competition. Other skaters are worried about if they skate with us.
SHAOANG LIU: Sometimes scared.
SANDOR LIU: So, yes, they are a little bit scared, but yes, we're trying to put that pressure in there. So if you see the Liu brothers is coming,
the danger is coming.
SHAOANG LIU: You know what is coming.
(COMMERCIAL BREAK)
[08:50:00]
CURRY (voice over): Budapest has many faces. Its architecture is a confluence of different cultures such as the Romans and the Turks that have
occupied the city over the centuries. In the same way, the Hungarian cuisine was also influenced by different cultures.
Goulash is considered the national dish, a tasty soup of meat and vegetables. Paprika gives goulash its distinctive red color. Hungary
produces more than 1,000 tons of the spice every year. Another valuable ingredient can be found below the surface.
We are on the hunt for truffles in a forest on the outskirts of Budapest. Hungarian truffles are in high demand these days because they are more
affordable than in most other European countries. Amory has been a professional truffle hunter for six years. His assistant, Edit, tells us
he found around 60 kilograms of truffles last year - rather, the dogs did.
(BEGIN VIDEO CLIP)
EDIT FULESI, TRUFFLE HUNTING ASSISTANT: The dogs are doing the work. Olive, she is the explorer and Sailor, the working dog. Usually, he is who
is digging out the truffles.
(END VIDEO CLIP)
CURRY: Joining the group today is Chef Eszter Palagyi, who earned the coveted Michelin star at the tender age of 29, and has been crowned
Hungary's best chef in two of the past three years.
(BEGIN VIDEO CLIP)
ESZTER PALAGYI, HEAD CHEF, COSTES: I hope we find a hundred or 200 grams truffle, what I can use as well, in the kitchen, bigger as possible.
(END VIDEO CLIP)
CURRY (voice over): As one of Europe's rising kitchens stars, Eszter pursues a philosophy of using local ingredients whenever possible. Such as
the sough after truffles.
(BEGIN VIDEO CLIP)
PALAGYI: Well, for us it is very important because it is like the duck liver or the goose liver is really typical Hungarian, so you see we have
much forest because we love our country as well.
FULESI: Sailor found a truffle, but this truffle is very, very small and we have to leave it in the forest. The dogs are trained with treats. Some
dogs, unfortunately, all over the world are trained with starving, but this is more human and better way. Not so well trained dogs usually eat the
truffles and when they find small truffles and when they just crack it with the tough, then they eat it.
PALAGYI: It's really interesting you know, the black dog is finding very small ones and they are very deep underground. The other one is just
grabbing two and she find the bigger one, so the two dogs have different tasks. I always eat everything. I have to taste it, you know. A good
chef tastes the ...
(END VIDEO CLIP)
CURRY (voice over): It's been a successful hunt. The truffles are smaller than she had hoped for, but Eszter has gathered 265 grams of the precious
delicacy to take back to her restaurant.
In 2010, Kuster's was the first restaurant in Hungary to be awarded a Michelin star, it's now one of four restaurants in Budapest which have
received that mark of culinary quality.
(BEGIN VIDEO CLIP)
PALAGYI: I'm making now a (inaudible), it is Hungarian grilled fish. It's from my small kids memories because in the summer and in the winter we were
grilling and cooking much outside. We were grilling fish and use salads for it or the seasonal vegetables.
You can use the truffle sliced as well and you can grate it as well and that is how is our truffle and fish dish is done.
(END VIDEO CLIP)
CURRY (voice over): To wash down the fine food, we're ordering a special digestif, Hungary's favorite herb liquor which some regard as the national
drink.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's good for the stomach, so if you have any kind of stomach problem, just drink one shot.
(END VIDEO CLIP)
[08:55:05]
NEIL CURRY (voice over): At this historic distillery in Budapest, more than a million liters of Unicum are aging in 500 barrels.
(END VIDEO CLIP)
FRED ODZUK, CEO, UNICUM: What you can see here, here we age the Unicum plum, which is basically Unicum aged and dried plums in old casts. It's a
very sophisticated drink because first of all, you have to organize the herbs and spices from five continents come in time here from very exotic
countries. So we have roots from Malawi, for instance. So good paprika, it has a good taste and a good smell.
(END VIDEO CLIP)
CURRY (voice over): Unicum was first produced more than two centuries ago as a remedy for indigestion. It was created by Jozsef Zwack, a doctor at
the Court of Vienna for the king of Hungary. The Zwack family began commercial production of the liquor in 1840, and so the recipe has remained
the same to this day comprising 40 different herbs, it's a family secret.
(BEGIN VIDEO CLIP)
ANNE ZWACK, CO-OWNER, UNICUM: Oh, yes, yes, very much so. In fact, my role in the company is very small, but I do some of the herb mixing of the
most secret part of the whole recipe. Nowadays, it's all on computer, but with codes and it would be very difficult tof anybody to hack it.
(END VIDEO CLIP)
CURRY (voice over): The secret recipe has survived turbulent times. Production was interrupted by the Second World War and afterwards, the
business was seized by the communist regime, which produced an inferior imitation of the liquor after the family smuggled the recipe out of the
country.
(BEGIN VIDEO CLIP)
ZWACK: They were difficult times. They were very difficult times. The family of course lost everything. There was no compensation involved in
this confiscation. And so they became refugees.
(END VIDEO CLIP)
CURRY (voice over): As communism crumbled at the end of the 1980s, Anne Zwack and her late husband finally managed to take back control of the
company and the family remains heavily involved today.
More than a third of all liquors sold in Hungary come from the Unicum distillery. The drink is an established part of Hungarian culture and
along with the glittering Christmas markets, add a special seasonal spirit to Budapest at this time of the year.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Cheers, Budapest.
(END VIDEO CLIP)
[09:00:00]
