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Decision Day In Israel, Sources Say At Least Two More Top U.S. Officials Heading Out The Door; Leading Activists Behind Hong Kong's Occupy Central Umbrella Movement Are Awaiting Sentencing. Aired: 8-9a ET

Aired April 09, 2019 - 08:00   ET

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


KRISTIE LU STOUT, CNN HOST, NEWS STREAM (voice over): A nail biter of a vote.

(BEGIN VIDEO CLIP)

BENNY GANTZ, FORMER MILITARY CHIEF OF STAFF: Let us all wake up to a new dawn, a new history.

(END VIDEO CLIP)

LU STOUT (voice over): People across Israel head to the polls in what's a make or break moment for Prime Minister Benjamin Netanyahu.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (Through a translator): This is a sacred act. The essence of democracy.

(END VIDEO CLIP)

LU STOUT (voice over): Political purge.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN ANCHOR: DHS Secretary Kirstjen Nielsen is out. Her deputy has been bypassed. The Director of the Secret Service has also been

fired.

(END VIDEO CLIP)

LU STOUT (voice over): Donald Trump cleans house at the U.S. Department of Homeland Security and the latest sign of a looming immigration clamp down.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Our country is full. Can't take you anymore, I'm sorry.

(END VIDEO CLIP)

LU STOUT (voice over): And democracy leaders found guilty. Nine Hong Kong activists are convicted for their role in the 2014 Umbrella Movement.

(BEGIN VIDEO CLIP)

BENNY TAI, LAW PROFESSOR: We will continue to strive for Hong Kong's democracy.

(END VIDEO CLIP)

LU STOUT (on camera): I'm Kristie Lu Stout in Hong Kong and welcome to NEW STREAM. It is decision day in Israel, one that will test the political

endurance of Prime Minister Benjamin Netanyahu once and for all. Now, polls have shown his Likud Party and Benny Gantz's Blue and White Party,

neck and neck.

Now you see Mr. Netanyahu there along with his wife, casting his vote at one of 10,000 polling stations set up across the country. He could either

serve a record fifth term, or be pushed out by the former military chief who is promising a new path for Israel. He also cast his vote earlier in

the day.

Now, CNN's Oren Liebermann is following all the developments from Jerusalem. He joins us now and Oren, this is a hotly contested election.

What does the path to victory look like for Netanyahu and for Gantz?

OREN LIEBERMANN, CNN CORRESPONDENT: Well, Prime Minister Benjamin Netanyahu is very much playing the underdog card in the closing days of the

election. Just yesterday, he came out and said that his government, his strong right-wing government, as he calls it, is a few seats behind and is

in danger of collapsing and being replaced by what he calls a softer, a weak left-wing government.

As you pointed out, the polls show this much closer. So either Netanyahu's Likud Party has different information from their internal polling or he

just wants to play the underdog card because it has served him so well in the past, especially in 2015, where he was pulling behind. And then in the

last days of the election, surged into the lead.

He has been out in full force. He voted here in Jerusalem and then has been making stops trying to rally his voters as well as posting quite a few

messages on social media -- Twitter, Facebook -- all to try to get big voter turnout here.

Meanwhile, his rival, his former Chief of Staff, Benny Gantz voted earlier today just northeast of Tel Aviv in an area called Rosh Ha'ayin. That was

early this morning, then he too, has been making the rounds, making sure those in his Party are also out there trying to rally the vote. Neither

one of these guys thinks they have it locked up.

It will also of course, depend on who can build the coalition, but that's later. For now, it's just trying to make sure that one of those two

biggest parties -- Netanyahu's Likud Party or his rival, Benny Gantz's Blue and White Party -- comes out with a lead and they'll be working up until

the polls closed at 10:00 p.m. tonight.

Then the exit polls come, and that will be our first chance, Kristie, to have an idea of where these stand. They are notoriously inaccurate. But

shortly thereafter, we'll start getting actual results and we'll see who's really in the lead.

LU STOUT: And then comes the task of building a coalition government. So in regards to coalition building, who has the edge and could Netanyahu's

looming corruption indictments complicate that process?

LIEBERMANN: Right now, it looks like Netanyahu has the edge in building a coalition. There are a number of smaller right wing parties that have

either openly pledged support for him or lean in that direction, which gives Netanyahu a comfortable margin and it looked like, up until just a

few days ago, he was okay with that. He was okay with not coming out with the biggest party because he had what looked like an easy path to a

coalition.

He just shifted strategy in the last couple of days, and now he wants the biggest party, even at the risk of cannibalizing votes from other right-

wing parties. Why is that such a big risk? Because he may put some of those right-wing parties he needs under the electoral threshold and then he

would essentially be shooting himself in the foot.

But that's been the strategy he is going for now, trying to suck up, trying to get as many of those right-wing votes as he can to make sure he comes

out ahead at the end of the night. There about seven hours of voting left here. This is one of those polling stations here. It has been busy and it

will continue to be so until the polls close.

LU STOUT: All right, so all eyes on Netanyahu and whether he can fend off his rival. Oren Liebermann reporting live. Thank you.

Mr. Netanyahu is also thanking one of his biggest allies, Donald Trump, for declaring Iran's Revolutionary Guard Corps a quote, "foreign terrorist

organization." The U.S. President announced the decision on Monday saying that the Guard actively participates, finances and promotes terrorism.

[08:05:08] LU STOUT: Iran quickly fired back by designating the U.S. as a state sponsor of terrorism and American troops in the Middle East quote,

"terrorist groups."

Iran's President slammed the U.S. declaration as a mistake while praising the RGC for fighting terrorism and for guarding the nation. Ramin

Mostaghim is a reporter for "The Los Angeles Times." He joins us now from Tehran. Ramin, welcome back to the program. Thank you for joining us.

RAMIN MOSTAGHIM, REPORTER, LOS ANGELES TIMES (via Skype): Thank you. Thank you for having me.

LU STOUT: Just how significant is this move? This terrorist designation tit for tat, what impact is it going to have on Iran?

MOSTAGHIM: On Iran, economically is going to be hard, I mean, painful and already started to devaluations and it kicks off the devaluation of local

riyals against the hard currency including dollars. And I think the soaring prices will be -- will add up to the pains of the common people in

the streets. That is the economic side of it, but at the same time, reformist are rallying behind the IRGC, the pro-government and hardliners

also are rallying behind the IRGC as a hero elite forces and they try in a couple of days, the day of the IRGC -- National IRGC Day -- they just want

to lionize these IRGC as an elite force who just supports the guys in Tehran, the pillars of the Islamic Revolution.

But I mean, the reformists also are trying to convey this message to the world and public opinion that whatever happened, Trump's designation of the

IRGC as a terrorist group was a sort of a gift dedicated to Netanyahu on a golden plate adjust on the eve of the election in Israel.

So from that point, reformists are trying to say that it's was a gift by Trump to his own ally and crony, blue eyed boy Netanyahu and are bracing

for bad days to come and try just to find a way to get rid of this, I mean, impasse and I mean, difficult situations, and are hoping that trade and

barter with neighboring countries, with Iraq, Turkey, Russia, and anywhere that can - they can omit and delete dollar as exchange money will be

helpful for them, but it is going to be harmful, I mean, painful and it hurts the economy of Iran.

But at the same time, it's a good chance for IRGC to lionize itself and reformists to rally behind IRGC at the same time to show this national

solidarity against the great Satan as they call American administration.

LU STOUT: Got it. So this U.S. terror declaration, it will have ripple effects across the region. It gives the Republican Guards an opportunity

to as you say, lionize itself, but will also cause economic pain there in Iran. Ramin, unfortunately, we'll have to leave it at that, but thank you

very much for your analysis and for joining us here on the program.

U.S. President Donald Trump is meanwhile back home in the United States, he is getting rid of top officials at the Department of Homeland Security as

his frustration over illegal immigration grows. The head of the U.S. Secret Service, Randolph Alles announced his resignation on Monday, just a

day after the Homeland Security Secretary Kirstjen Nielsen was forced to resign. And sources tell CNN, at least two more officials have been named

as possibly heading out the door.

Now since Mr. Trump's inauguration, there have been a wave of departures from Cabinet officials to White House staffers, some leaving in firings,

others in resignations. Have a look at that graphic on your screen there. It has led to flurry of temporary hires. Homeland Security alone has had

at least three senior positions filled by people in an acting role.

Our senior Washington correspondent, Joe Johns joins us live from the White House, and Joe, President Trump is clearing out the top ranks at Homeland

Security, the purge is on, who is next?

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: Anybody's guess quite frankly, Kristie, you can call it a purge. You can call it a wave. You've

got a bunch of people headed for the exits at the Homeland Security Department, as the President essentially decides that he's going to go in a

different direction.

Now, this is an administration that has been known for upheaval, not all that unusual. But what's been a bit extraordinary over the last 24 hours

or so is the backstory, the reporting from some of my colleagues here at CNN suggesting that the President of the United States has been giving

orders to some of his subordinates telling them to disobey or at least ignore the law.

(BEGIN VIDEOTAPE)

[08:05:01] JOHNS (voice over): One official calls it a near systematic purge at the Department of Homeland Security. Secret Service Director

Randolph Alles ousted by President Trump a day after he forced Homeland Security Secretary Kirstjen Nielsen to resign.

The official tells CNN two other top officials are likely headed out soon. The moves angering the most senior Republican in the Senate. Chuck

Grassley expressing his concerns to "The Washington Post": "The president has to have some stability. He's pulling the rug out from the very people

that are trying to help him."

Stephen Miller, the President's hardline senior advisor, influenced at least some of the changes.

(BEGIN VIDEO CLIP)

REP. KATHLEEN RICE (D-NY): How about Stephen Miller asked him to appoint him as the Secretary of DHS? Let him explain to the American people why he

wants to go back to ripping babies out of their mothers' arms. Own it.

(END VIDEO CLIP)

JOHNS (voice over): The change is a clear sign the President intends to intensify his anti-immigrant policies. CNN has learned that the White

House now wants to force migrants at the border into a binary choice: stay together in detention or be separated from their kids.

The zero-tolerance policy that resulted in mass separations last year was roundly criticized, but CNN has learned in recent months, President Trump

has been pushing to resume and expand the policy, even for legal asylum seekers, believing it deters migrants.

A senior official adding, "He just wants to separate families." Adding, "The President refuses to understand that the Department of Homeland

Security is constrained by the laws."

In a meeting with top officials two weeks ago, a source present at the meeting tells CNN the President was, quote, "ranting and raving" and

ordered top aides to close the port of El Paso, Texas. Secretary Nielsen warning the move would be dangerous. Two sources in the room say the

President responded, "I don't care."

(END VIDEOTAPE)

JOHNS: Today, President Trump is expected to meet with the President of Egypt here at the White House which on any other day would probably be the

big headline, but not this day for one reason because the Attorney General is on Capitol Hill testifying. People here would very much like to hear

what he has to say about the Mueller report that still hasn't been released -- Kristie.

LU STOUT: And Joe, I know that we will be talking about that with you tomorrow. John Johns live from the White House, thank you.

Now, the bumpy day for the U.S. Secret Service didn't end there. A hearing for a Chinese national charged with bluffing her way to Donald Trump's

Florida resort exposed weaknesses in the very agency designed to protect the U.S. President.

Yujing Zhang is facing criminal charges for allegedly breaching security at Mar-a-Lago last month and she was carrying malware, devices to detect

hidden cameras and thousands of dollars in cash. The judge ordered her to remain in custody for at least another week.

You're watching NEWS STREAM and still ahead, Carlos Ghosn says he is a victim of conspiracy, what the jailed executive is saying in a new one

video, next.

Plus the Hollywood actress Felicity Huffman faces up to 20 years in prison for alleged role in a wide-ranging college admissions scam. The apology

she's given and more just the head.

(COMMERCIAL BREAK)

[08:15:30] LU STOUT: Broadcasting live from Hong Kong, welcome back. This is NEWS STREAM.

Now, the British Prime Minister Theresa May is scrambling to secure another extension to the Brexit process. Mrs. May has been in Berlin today for

talks with Angela Merkel ahead of an emergency Brexit Summit on Wednesday.

Later the Prime Minister heads to Paris for talks with President Macron as the threat of a no-deal Brexit on Friday edges ever closer. Let's get the

very latest from our senior international correspondent, Atika Shubert in Berlin, and Atika, Prime Minister May, she has been meeting with Chancellor

Merkel there in Berlin to help muster up another Brexit delay. How is this all going to play out?

ATIKA SHUBERT, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, this is the million dollar question. Now, we don't know exactly what was said because

no press conference was held. But it did get off to a bit of an awkward start because the British Prime Minister arrived a few minutes early and

that meant that the German Chancellor was not actually on the red carpet to greet her.

The last time Prime Minister May came to Berlin, she was actually locked in her car. So this time, she just sped right in and was left waiting in the

lobby for a little while. Well, Merkel finally arrived and brought her outside for the traditional photo op.

It started awkwardly, we don't know what happened inside. But most likely, she asked for that extension. Of course, Britain wants that June 30th

extension. This is not something that Germany and the E.U. have generally agreed to. However, there is some flexibility for perhaps a longer

extension, as long as the U.K. participates in the E.U. election, something that has already been put forward by the British Conservative Party. So

that's possibly a good sign.

The problem here is that for Germany just support any extension, it needs to have some sort of confidence, some sort of sign that in fact, this

withdrawal agreement for Brexit will eventually be passed somehow some way.

And right now, there is no guarantee that that can happen. So where does the British Prime Minister go from here? Well, she'll have to go to Paris

talk about it with the French President, Emmanuel Macron and then see if she has managed to convince all 27 E.U. members when they meet for that

emergency meeting tomorrow in Brussels.

LU STOUT: Yes, these are critical last minute talks. Brexit day, just four days away. Atika Shubert live in Berlin. Thank you.

Another headache for the E.U. is developing at this moment. President Trump has just tweeted that the U.S. will slap tariffs on $11 billion worth

of E.U. products after the World Trade Organization ruled that he E.U. subsidies for Airbus cause adverse effects for the U.S. The move threatens

to further escalate the trade dispute between the U.S. and the E.U. We will have more on the story on "First Move" with Julia Chatterley coming up

in about 45 minutes.

Carlos Ghosn accused Nissan execs of backstabbing in a new video statement out earlier today. The former Nissan boss repeated his claim of innocence

saying executives at the Japanese carmaker conspired to remove him from power. Ghosn is in custody right now awaiting trial on several counts of

financial misconduct.

Anna Stewart joins us now. She has got more on the story for us and Anna, Ghosn, he has been on this campaign to prove his innocence. What more did

he say in this video statement?

ANNA STEWART, CNN REPORTER: Quite a bit, and it was -- what was really striking here isn't just what he says and I'll come on to that. But

actually, it's how he said it. He was defiant. He was calm. He was very clear throughout. And despite having his hair slightly grayer and a face

that was slightly thinner from his initial arrest back last November, he seemed pretty strong despite the recent months' experience.

Now, he wanted to give a press conference this week to explain himself, but he pre-recorded this message in case he couldn't make it, of course his re-

arrest at the end of last week on a separate charge of siphoning off $5 million from a Nissan payment to an overseas dealer means that he can't

make that. But in this message, he says he is innocent. He says he still loves Japan. He still loves Nissan. And then he explains what he says are

the reasons behind all these charges.

(BEGIN VIDEO CLIP)

CARLOS GHOSN, FORMER NISSAN CEO: The third point I want to tell you that this is a conspiracy. This is not about specific events. This is not

about again, greed. This is not about dictatorship. This is about a plot. This is about conspiracy. This is about backstabbing, that's what we're

talking about. And why? So you can say why this happened? Why it happened because there was first a fear that the next step of the alliance

in terms of convergence and in terms of moving toward the merger would in a certain way threaten some people. Or eventually threaten the autonomy of

Nissan.

[08:20:12] STEWART: Serious allegations against Nissan who have not commented on this video today. Now, to give you some context, I mean, I

was in Tokyo this time last year and rumors and speculation about the potential for a merger between Renault and Nissan abounded there, neither

company would speak about it.

There was a very complicated corporate structure here. Essentially, Renault own over 40 percent of Nissan. Nissan only own 15% of Renault, and

in addition to that the French government have just over 15 percent of Renault giving them a huge sway. They are the biggest shareholder, so

there's always been this tension that exists. No comment from Nissan and we'll have to see whether we get anything more from Carlos Ghosn and his

lawyers as the days go by.

LU STOUT: Anna Stewart on the story first. Anna, thank you.

Now to the U.S. where three women in the U.S. State of California already are suing Uber. They say that they were raped by drivers who posed as

employees for the ride-sharing company. They are also accusing Uber of failing to warn customers of a string of past assaults and are taking the

lawsuit to the Los Angeles Superior Court.

Let's bring in Drew Griffin. He joins us from Atlanta with more. And Drew, walk us through the lawsuit. What it alleges and what the women are

seeking?

DREW GRIFFIN, CNN SENIOR INVESTIGATIVE CORRESPONDENT: Kristie, these are about attacks that took place in the Los Angeles area of California. Nine

people sexually assaulted within a five mile radius of West Hollywood by fake Uber drivers between September 2016 and February of 2018.

This is from a lawsuit from these three women. Uber allegedly failed to warn customers after law enforcement told Uber of at least five assaults by

these fake drivers in the part of Los Angeles that houses several popular nightclubs.

Two men were arrested for attacking women in separate cases, one already sentenced to eight years in prison. The lawsuit claims that Uber has

egregiously chosen to hide and minimize its safety problem. It alleges that Uber makes it easy for predators to obtain print-at-home Uber labels

to deceive passengers.

Now the LAPD declined to comment. The LA Sheriff's Department could not be reached for comment, but Uber told us that it hasn't seen the copy of this

lawsuit yet, Kristie, but a spokesperson said in a statement, "We have been working with local law enforcement including the LAPD to educate the public

about how to avoid fake rideshare drivers for several years."

This suit comes after a University of South Carolina student, Samantha Josephson was kidnapped and killed here in the U.S. when she got into a

vehicle she mistakenly thought was an Uber. We should note that a CNN investigation in April 2018 found 103 Uber drivers, real Uber drivers in

the U.S. were accused of sexually assaulting or abusing their passengers in four years prior.

Uber has yet to release its own internal reporting on this, Kristie and how many of its real drivers have been accused or charged in sexual assaults --

Kristie.

LU STOUT: And Drew you've updated the story how Uber has a problem, a big problem with sexual abuse. You mentioned that investigation from April

last year. That's when you brought this to our attention one year ago. Since then, do you think Uber has adequately changed the way it handles his

cases?

GRIFFIN: Well, we can tell you for sure that the problem still exists. Uber has tried to tighten up its background checks, conduct annual checks

on drivers. Also to try to educate the public more, put a device on its app which is sort of an emergency button if you feel threatened, you can

press that button and it immediately tells authorities and perhaps your loved ones exactly where you are.

But the problem persists, and as Uber sets to go for its IPO, the company is still refusing to release its own tallies of internally, of sexual

assaults being reported by its customers.

LU STOUT: Yes, Uber needs to be more transparent on this issue ahead of its IPO. Drew, we thank you for this steadfast reporting on Uber. Take

care. Drew Griffin there.

Now U.S. Federal prosecutors, they want prison time for the actress, Felicity Huffman and other parents who are pleading guilty to cheating in

order to get their children admitted to the country's most selected universities.

Now, Hoffman, who starred in the show "Desperate Housewives," she has agreed to plead guilty to paying $15,000.00 to a fake charity to facilitate

cheating for her daughter on college entrance exams. Now, the actress faces up to 20 years in prison.

The prosecutors, they have recommended a much lesser sentence. Our U.S. correspondent Brynn Gingras is following developments from New York. She

joins us now and Brynn, the defendants -- we mentioned Felicity Huffman -- they are wealthy, high profile individuals, a lot of attention - global

attention on this case. How much prison time could they ultimately serve?

BRYNN GINGRANS, CNN U.S. CORRESPONDENT: Yes, I mean, the government in this case has been very clear that they're not going to sort of separate

each defendant and make up -- depending on how much they contributed to this scam make up some arbitrary number.

[08:25:05] GINGRAS: They said anywhere between six months and almost two years is what they're going to recommend to the judge.

Now, when in terms of Felicity Huffman, again, she's one of 13 parents now who say they will plead guilty to what they're accused of doing, their

connection with this scheme. They said they are going to recommend the lower end of that for Felicity Huffman.

So ultimately, it's up to a judge. We don't know if she'll actually see prison time at this point. But it is possible and the same is true for the

rest of the defendants. Remember, 50 people in all were connected to the scam. So there are other people who still are waiting out and seeing what

happens if they're going to continue with a not guilty plea.

I just talked to an attorney who represents one of the coaches connected to this. He says his client is not guilty. They're going to continue the

course. However, the clock is ticking. We know that the government has said that they will bolster charges against some of these defendants, if

they don't take a plea.

So there are money laundering charges that some have had tacked on to this case. So we'll see what happens in the very near future. But I have to

tell you, Felicity Huffman released a statement. Again, she was one of 13 player parents to plead guilty most recently, and hers was a pretty

impressive statement. It was a very long and I want to read part of it for you, Kristie, she said, quote, "I am ashamed of the pain I have caused my

daughter, my family, my friends, my colleagues, and the educational community. I want to apologize to them, and especially I want to apologize

to the students who work hard every day to get into college, and to their parents who make tremendous sacrifices to support their children, and do so

honestly."

That was only part of statement, and in it, she also said that her daughter had no idea that she paid $15,000.00 to the mastermind of this scheme to

help bolster her test scores. But yes, we're going to see what happens and very near new future.

Really quickly, I want to mention USC, which has been one of the largest schools tied to this, they're taking a case by case interest in each

student who might be tied to this. They said that they will take into account these plea agreements by some of these parents when considering

whether or not to allow the students to stay in their school. So we'll see what happens.

LU STOUT: Yes, one of those USC parents, Lori Laughlin, we're still waiting to hear her latest reaction yet. Brynn, we'll leave it that.

Thank you so much.

You're watching NEWS STREAM. Keep it here because up next, all nine leading activists behind Hong Kong's Occupy Central Umbrella Movement are

awaiting sentencing. We speak with a pro-democracy lawmaker who is going to give us her take on the verdict and the feature of democracy in the

city.

(COMMERCIAL BREAK)

[08:30:01] LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching NEWS STREAM and these are your world headlines.

Israelis are voting right now in a closely watched election. Benjamin Netanyahu cast his ballot a short time ago. He could other either serve a

record fifth term is Prime Minister or be pushed aside by his main rival, former military chief, Benny Gantz. We saw him vote a short time ago as

well.

Two more deaths have been reported at the side of protests outside Sudan's military headquarters in Khartoum. This brings the death toll to 10 since

Saturday. Opposition sources say that the protesters were shot by National Security Forces. It is the fourth day of dissidence calling for the

removal of President Omar Al Bashir.

Malaysian official say the wife of disgraced former Prime Minister Najib Razak was arrested and released earlier today. Rosmah Mansor will face

charges in court on Wednesday. She is accused of soliciting and receiving bribes. The trial against her husband began last week.

In Hong Kong, the future of this city uncertain for many locals, especially after the pro-democracy Umbrella Movement ended back in 2014. Earlier, the

Hong Kong District Court handed down guilty verdicts for all nine leading activists of the protests. But despite the possibility of facing jail

time, they are not giving up.

(BEGIN VIDEOTAPE)

LU STOUT (voice over): The biggest pro-democracy protest in the history of Hong Kong, the Umbrella Movement that took place in 2014 ended with guilty

verdicts for all nine leading activists of the protests.

Among them, legal scholar Benny Tai; Sociology Professor, Chan Kin-man; and retired Pastor Chu Yiu-ming were convicted of a range of public nuisance

offenses, concluding when the city's most politically charged trials in years, but the activists are not backing down.

(BEGIN VIDEO CLIP)

TAI: Together, will continue to strive for Hong Kong's democracy and we will proceed on and we will not give up.

CHAN KIN-MAN, SOCIOLOGY PROFESSOR: I still believe in the power of love and peace, and I have no regrets for what I have done.

(END VIDEO CLIP)

LU STOUT (voice over): Hong Kong democracy advocates, human rights groups, and even politicians in the U.K. and the U.S. quickly condemned the

convictions, saying, "The convictions are sending a terrible message that will likely embolden the government to prosecute more peaceful activists,

further chilling free expression in Hong Kong."

The 79-day street occupations also called Occupy Central came on the back of shrinking political freedoms in this special administrative region.

On August 31, 2014, Beijing decided that Hong Kong's Chief Executive will be elected by popular vote, but only after each candidate has been approved

by the Chinese government, rejecting the city's full democracy seen as a crucial political tipping point for the Hong Kong people.

Under the One Country Two Systems arrangement, Hong Kong enjoys a high degree of autonomy and freedoms. But in recent years, critics say China

has begun to walk back on its commitment, stoking fears about the future of the former British colony as activists who have become known as the

Umbrella Nine face punishment.

(END VIDEO CLIP)

LU STOUT: And Hong Kong pro-democracy lawmaker, Claudia Mo joins us now. Claudia, thank you for joining us. What is your reaction to the

convictions and what message do they send?

CLAUDIA MO, CONVENOR, DEMOCRATIC CAMP, HK LEGISLATOR: Well, this is clearly political prosecution and persecution, just like any autocratic

regime, they are using judicial means as political weapon to shut down dissent. They want to shut down Hong Kong as what we call what we're being

known as the city of protest.

They're trying to send this chilling effect around the entire society that watch out if you are an activist, you do behave or else. Now, they are

trying to make Hong Kong disappear from the map.

LU STOUT: Now, China's Foreign Ministry has responded as spokesperson said it firmly supports the convictions adding this quote, "I also want to

remind people from other countries who are holding one-sided understanding that the verdict was indicative of shrinking freedoms in Hong Kong, which

were illogical and baseless." Claudia, what do you make of that?

MO: That's a load of crap. I mean, what they're trying to do is so obvious. This is political retribution. The Umbrella Movement certainly

made China look rather bad three or four years ago, and they need somebody to pay back.

[08:35:05] MO: And they're trying to make this a huge political lesson for Hong Kong, especially our young. Now, included in the nine defendants are

two existing legislators.

Now, previously, Beijing and Hong Kong governments together have successfully ousted six of our democratic legislators. Now, they are

likely to get rid of two more. How about that? We're already very outnumbered at the local legislature.

LU STOUT: After today's convictions, again, these nine activists found guilty five years after the 2014 Umbrella Movement protests. The

sentencing will come out are the tomorrow or even later, in terms of sentencing. What are you expecting?

MO: Now the maximum penalty, I was told is seven years. But then seven years, obviously sounds too much, right, for a rioting charge. Previously,

a young activist of ours was sentenced to six years. So I'm expecting at least half -- just half of that number, but then for -- I don't know.

I mean, one, two years, maybe less. I just don't know because the whole thing is so political. Obviously, we all knew that if you break the law

for political purposes, you're not going to use that as a mitigating factor. But then, we are talking about civil disobedience and it's passive

and it's peaceful and I hope the sentencing will be light, ultimately.

LU STOUT: Claudio Mo, we thank you for joining us. Take care.

MO: Thank you.

LU STOUT: You are watching NEWS STREAM, and still ahead right here on the program, the "New York Times" CEO. Part two of our interview, he warns

publishers against signing up to Apple News Plus, find out why, next.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. Now Facebook and Google will face questions about policing white supremacist content on their platforms in the coming hours.

The U.S. House Judiciary Committee hearing, it comes after the massacre of 50 people at two mosques in Christchurch, New Zealand was live streamed on

Facebook. The committee says, it will explore what social media companies can do to stem white nationalist propaganda and hate speech online.

Big tech's role in the media industry is also facing growing scrutiny. It's a subject I discussed in part two of my interview with "The New York

Times," CEO Mark Thompson. Under his watch, "The Times" has accumulated millions of digital subscribers, but he has warned publishers away from

working with big tech too closely. Most recently, ahead of the launch of the Apple News app, and I began by asking him, why?

(BEGIN VIDEOTAPE)

MARK THOMPSON, CEO, THE NEW YORK TIMES: Well, I want to say, each publisher must make their choices. And by the way, you know, we all live

and learn. Choices may change over time, all of us.

But we know there are some very good examples from the story of the music industry and the early story of R&D, you know, our good friends at Netflix

that just be careful of giving your crown jewels to someone who may turn out to be a competitor.

Maybe in some ways, superficially attractive because there's an immediate flow of revenue from it.

[08:40:04] THOMPSON: But in the end, what we're selling is experiences and we want people to experience the "New York Times" by and large on our

digital assets that we want them to come to us and we want to have a direct relationship. We can reach people around the world with our own digital

assets.

LU STOUT: Yes, but Apple is not just a major platform, it is a massive platform, 1.4 billion iOS users around the world, that must be tempting.

THOMPSON: Sure, Facebook 2 billion, Google, I don't know, but billions. These vast platforms have got enormous audiences. But you know, if you

don't have a direct relationship with your user, if you don't, you can't speak to them. You can't e-mail them. They don't know exactly who you

are, you don't know them. I don't know, you have to discount massively.

LU STOUT: For all those reasons you just listed, that's why at the "New York Times," you've kept a tactical distance away from Apple News, away

from Facebook, you mentioned fake news. Facebook has a massive problem with fake news, as well as on the back of Christchurch, a problem with

graphic content, extremist content, et cetera.

We know that Mark Zuckerberg, he is writing an op-ed saying, "Regulate us. Go ahead." Is Facebook -- is it beyond hope? It has become too big to be

regulated?

THOMPSON: Look, I think we're in the early stages of answering that question. For this, I believe from -- including from recent conversations

with Mark that they are, in their own terms trying to grapple pretty seriously with these issues. I mean, I believe that there is work afoot

inside Facebook to try and address these issues. We've yet to see the fruits of that.

And I want to say, "Look, they may not. It may be that they can't get to where we want to get." I think we've all got to be careful, though, of

swinging from a period of thinking that the major digital platforms could do no wrong. They were run by geniuses. They were just making the world a

better place to thinking that they're all the work of the devil.

I mean, the truth is probably always laying somewhere between those two extremes. So in a funny way, I think we're all -- this is the very --

still the early stages in these technologies. We're still struggling towards some kind of balanced view of what's going on.

And I would say that the platform where we've had the most traction I would say on these topics over the last few years has been Google and I think,

although it's not enough for us yet, we'd still like more. We've had quite the beginnings of a fruitful dialogue with Google about ways in which they

can help publishers and also help individual users really figure out what they're doing and where the news comes from.

(END VIDEOTAPE)

LU STOUT: "New York Times" CEO, Mark Thompson there and that is NEW STREAM. I'm Kristie Lu Stout. Don't go anywhere though, "World Sport"

with Amanda Davies is next.

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