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Bolton Discusses North Korea Nuke Test; A Walk in the DMZ; The Importance of November's Midterm Elections

Aired October 10, 2006 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: OK. Very quickly now we want to get to U.S. Ambassador to the U.N. John Bolton, who is answering some questions.
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JOHN BOLTON, U.S. AMB. TO U.N.: I think there is a strong view to move as quickly as we can. And I think certainly from the discussion in the Security Council on Monday, that was a view shared by all, that we want both a strong resolution and a swift response by the council.

We don't want a tradeoff between those two variables. We want both. And certainly the United States feels very strongly about that.

QUESTION: Ambassador, as for the discussion, what do you see as the biggest challenge towards reaching a resolution quickly?

BOLTON: Getting instructions for the Russians.

QUESTION: Besides getting the instructions for the Russians, most agree that the 13 points you read to the council were reasonable and actually due. What are the sticking points? Why aren't you moving besides the instructions? What are the sticking points that the Chinese or others might not find acceptable?

BOLTON: Well, I don't want to get into the specifics. I think we've got some -- some general guidance back that the Chinese gave to us. Our experts are meeting now.

Very frequently in these sorts of discussions, when you actually put the language on the page, differences turn out to be more resolvable than they might otherwise appear. On the other hand, sometimes differences become more intractable.

So I think it's really in the drafting process that many of these issues will be worked out. But I was pleased that we did have a very good discussion among those who had instructions to discuss.

I'll just take one more here -- yes.

QUESTION: (INAUDIBLE)

BOLTON: Well, I think the specifics on that will be among the things that we'll be discussing further and among the experts. But we think it's important to get -- get these discussions entrained, because the North Koreans for years now have been engaged in a variety of covert methods to -- both to proliferate their ballistic missile technology, for example, and to acquire that technology through front companies and other devices in other countries.

I just remember the classic case a few years ago of the shipment of their missiles to Yemen shipped out of North Korea on a vessel with the missile crates hidden under -- I think it was 15 or 20 layers of bags of cement. And with false papers about what the ship carried.

That's the sort of thing that led us of course to develop the proliferation security initiative. And many of the rationales underlying that underlie our desire to make sure that there are ways to frustrate clandestine North Korean efforts to flout what is clearly the predominant view of the Security Council.

OK. We'll see you all later.

HEIDI COLLINS, CNN ANCHOR: U.S. Ambassador to the U.N. John Bolton there talking about this draft resolution that the Security Council is looking at regarding sanctions against North Korea. The very latest there.

You can watch more of that on YOUR WORLD TODAY coming up here in just a few minutes.

Thanks a lot for watching, everybody.

I'm Heidi Collins.

HARRIS: And I'm Tony Harris.

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ATIKA SHUBERT, CNN CORRESPONDENT (voice over): ... "to attack Japan," he says. "What Japan needs is a deterrence within its normal military powers, something that will not spark fear among our Asian neighbors."

That poses a tough challenge for Japan's new prime minister, Shinzo Abe, in office for barely a month. What kind of military deterrent does the constitution allow? And will that include nuclear weapons? On this, Abe has taken a clear stand.

"We have no intention of changing our policy," he told lawmakers. "Possessing nuclear weapons is not an option for us."

But Abe rose to popularity by taking a tough line on North Korea and promising to change the constitution to build a stronger military.

(on camera): Changing the constitution is not easy. Not only does it require a two-thirds majority in parliament, it also needs a national referendum. And so far, there has not been enough public support. But will this nuclear test convince the Japanese public and lawmakers to make that change sooner rather than later? (voice over): On the streets of Tokyo, opinion is split. This woman says, "We have a wonderful constitution. And I want Japan to abide by it. We should never change it, even when facing off with North Korea."

Others say Japan needs to change; the sooner, the better. This man says, "If we ever want to have the ability to attack an enemy, then we should not go about it in a half-baked way."

As North Korea's nuclear threat grows, Japan must decide how far it will go to keep its belligerent neighbor at bay.

Atika Shubert, CNN, Tokyo.

(END VIDEOTAPE)

ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: And we do want to just welcome our U.S. viewers who have been watching Tony Snow at the White House and John Bolton at the U.N. Both of those gentlemen talking North Korea, which is exactly what we are doing at this point.

Just continuing on, then, North Korea is one of the most isolated countries in the world. And isolation clearly marked by the Demilitarized Zone between North and South Korea. That line is a minefield, really, where tensions have subsided little since fighting in the Korean War drew to a close more than 50 years ago.

Dan Rivers takes a closer look now.

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DAN RIVERS, CNN CORRESPONDENT (voice over): I'm taking a tour of the most heavily-defended border in the world, seeing up close this infamous division that slices the Korean peninsula in half.

(on camera): You get a real feeling of the proximity of the North Koreans right here. It's just over there. You can see where those mountains are. That is North Korea. That's how close these two opposing armies are. And this is what they've been like for the last 50 years, facing each other off through the razor wire.

(voice over): You can just make out North Korean villages on the other side cut off from the outside world. Only a handful of roads cross the border. This river crossing heading north has been named Unification Bridge.

(on camera): This was built by the South Korean government, hoping that it would be a symbol of unity with the whole of the Korean peninsula. But they are very sensitive about it now, as we're probably about to find out, and they were hoping that one day this would be the main road that would lead from Seoul to Pyongyang.

Obviously the army aren't particularly happy about us filming here. And it's raised tensions and very sensitive here. So we'll have to get out of the way. But you can see this is as far as most people are allowed to go. (voice over): Next stop, a section of fence that's become a focal point for a nation.

(on camera): This has become a shrine for Korean unification. And lots of school trips come here, and lots of the children leave their pictures up on this fence. But none of these children have known anything other than a divided Korea.

For 50 years, more than 50 years, it's been like this. This is as close as anyone can get to the north.

(voice over): I meet Mr. and Mrs. Park (ph), who have family on the other side. She says, "When I look at that place, it upsets me, it's so sad." Her husband says, "My heart is always there, where my countrymen are, and where my ancestors used to live."

Many South Koreans hope one day Korea will be one country. But the nuclear tests has worsened relations, making this barrier seem even greater.

Dan Rivers, CNN, on the border of North and South Korea.

(END VIDEOTAPE)

CHURCH: Well, journalists often risk their lives covering stories that reveal dark secrets.

MICHAEL HOLMES, CNN INTERNATIONAL ANCHOR: Indeed. Coming up after the break, Russians remember a dedicated reporter and question the circumstances of her killing.

CHURCH: We'll also bring you a story about incredible business success, a $1.6 billion acquisition that could affect the future of uploaded video on the Web.

We'll take a look. Stay with us.

(COMMERCIAL BREAK)

HOLMES: Welcome back, everyone, to YOUR WORLD TODAY, seen live in more than 200 countries across the globe.

This is YOUR WORLD TODAY on CNN International.

Let's move on now.

The U.S. midterm elections are less than a month away now. Americans frequently treat these off-cycle elections as something of an afterthought. Not this year, however. A variety of issues, the war in Iraq, illegal immigration, and congressional scandals all contributing to voter dissatisfaction, making this one of the most closely-watched elections in recent memory.

Jonathan Mann explains.

(BEGIN VIDEOTAPE) JONATHAN MANN, CNN CORRESPONDENT (voice over): The presidential election is the main event of American politics, drawing worldwide attention once every four years. But Americans actually go to the polls nationwide every two years.

The 435 members of the House of Representatives serve two-year terms. And though the 100 members of the U.S. Senate serve six years, they are elected 33 or 34 at a time in two-year cycles. When those elections coincide with a presidential race, it's a very big year for American politics. When they fall halfway through a presidential term, as they will this November 7th, they are called the midterm elections and tend to get a little less attention.

What makes this year different is that control of the Congress may be at stake.

STUART ROTHENBERG, ROTHENBERG POLITICAL REPORT: If you look at the most vulnerable 15, 20, 25 congressional districts in the country that are most competitive, that could turn, each and every one is a Republican.

MANN: Right now, Republicans have a majority in both houses. The question is whether they can hold them. If the Democrats win the House or even the more firmly Republican Senate, the impact could be sweeping.

First, a whole new headache for President Bush. Democrats say that if they get the majority's control over the powerful committees in Congress, they'll use them for much more aggressive oversight of the White House, the Pentagon, and the rest of the executive branch.

It is the Congress that funds the U.S. presence in Iraq and Afghanistan, and votes as well on the wider Pentagon budget that's straining under the pressure. The Democrats don't all agree on what to do. Democratic control in Congress would probably only deepen the ongoing national debate.

There is another national debate that could also be affected about immigration. A Democratic Congress might be more willing to create a guest worker program, potentially giving illegal immigrants a chance to live in the U.S. legally. President Bush never convinced his own party to support his guest worker plan.

Jonathan Mann, CNN, Atlanta.

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CHURCH: So, how likely is a congressional overhaul next month? That's what people are asking. Well, a new poll by Opinion Research Corporation reveals Americans have a dim view of the current Congress. Sixty-three percent disapprove of the way Congress is handling its job right now.

The scandal involving former congressman Mark Foley, who resigned amid revelations he sent inappropriate e-mails to teenage pages, also may have an impact. Seventy-five percent of respondents say Republican leaders handled the Foley matter inappropriately. And more than half believe the Republican leadership deliberately covered up the Foley scandal to prevent an earlier investigation.

HOLMES: Well, even before those rather glaring poll numbers came out, many GOP candidates already put themselves in damage control mode.

John Roberts now looks at how the party is trying to get back on message before time runs out.

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JOHN ROBERTS, CNN SR. NATIONAL CORRESPONDENT (voice-over): Each new day a new revelation about former Congressman Mark Foley, every new revelation taking the famously disciplined Republican Party farther off script.

CHARLIE BLACK, REPUBLICAN STRATEGIST: Well, it has certainly thrown us off message, and it's been a huge distraction from the message we would like to get out there.

ROBERTS: So instead of campaigning four weeks before the election, Republicans are focused on undoing the damage. The Foley scandal is an unfortunate twist, but not a death knell, says Republican strategist Charlie Black.

BLACK: It's not fatal, no. There's plenty of time, four weeks to go. You wouldn't want to have the election today if you were a Republican, but with four weeks to go the pendulum could swing back and forth a couple of times between now and election day.

ROBERTS: And to help swing the pendulum back, Republicans are presenting a united front on the Sunday talk shows, trying to put behind them intraparty sniping politicos call the circular firing squad.

UNIDENTIFIED MALE: We need to focus on what are the facts of this case and investigate it and get the facts out there.

ROBERTS: But Republicans have more to worry about than just the Foley scandal.

STUART ROTHENBERG, THE ROTHENBERG POLITICAL REPORT: The Mark Foley scandal has obviously added to their problems. But their problems predate that. It's about the war in Iraq. It's about the president's performance and reputation. It's about the administration's response to Katrina. A series of problems, ethics and performance. And right now the voters seem to want a change, and that means Democrats.

ROBERTS: Democrats smell blood over the latest ratings that show control of both the House and Senate within striking distance. A rise in the president's poll numbers have stalled, and some conservative leaders are predicting even evangelical values voters will stay home on November 7. ROTHENBERG: It's going to be all about Republican turnout if Republicans are disillusioned, embarrassed, depressed about the state of things, they won't vote. And then the Democrats will have a terrific chance to take the Senate, as well as the House.

ROBERTS: Analysts also point to new states in play. The Senate race in Tennessee and the tightening contest in Virginia, where incumbent Senator George Allen's campaign has come all but unglued over charges of racism and denying his family's religious background. But not so fast, says Charlie Black.

BLACK: Nobody could have been shot more full of holes, even if he did do some of it to himself, and he was over a full week period. And he's still ahead of the polls. The best is yet to come for Allen.

ROBERTS: If Republicans are thankful for anything, it's that the Foley scandal erupted now and not November 1. Already, it's being pushed out of the headlines. And, as party faithful like to point out, the election is still a month away, in a business where a day is a long time, a week, forever.

RONALD KESSLER, NEWSMAX.COM: Well, it clearly has depressed the polls. It certainly has taken some of the momentum away. But a lot of this is ephemeral. It's something that, you know, I think will go away within a week or so. You know, in the end, all these people actually did take appropriate action. It's not a scandal that I think has legs.

ROBERTS: John Roberts, CNN, New York.

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CHURCH: And CNN of course will have extensive coverage of the U.S. midterm campaigns over the next month as Republicans and Democrats fight for control of Congress.

And you can go to our Web site for election coverage any time, of course. And that's at CNN.com/election.

HOLMES: Well, some TV viewers might well be asking is it time to throw away the remote control and buy an extra mouse?

CHURCH: Coming up, another major media merger.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is great. Two kings have gotten together. And we are going to be able to provide you an even better service and build even more innovative features for you.

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CHURCH: Two very happy guys. And they give the phrase "laughing all the way to the bank" a whole new meaning.

(COMMERCIAL BREAK) HARRIS: And hello, everyone. I'm Tony Harris at the CNN Center in Atlanta.

More of YOUR WORLD TODAY in just a few minutes. But first, a check of stories making headlines in the United States.

Was it real? The world still doesn't know for certain whether North Korea carried out a nuclear test. Here's what we do know right now.

A senior U.S. intelligence official says the reported test was small for a nuclear detonation. That's led to questions about North Korea's claim. Experts say we may never know whether the north has a functioning nuclear weapon.

For the United States, a time to push diplomatic penalties. The Bush administration pressed the United Nations to put tough new sanctions on the North Korean regime.

Along with a push for sanctions, the United States and its allies are pressing North Korea to return to six-party talks on its nuclear program. Those talks, now stalled, are hosted by North Korea's neighbor, China.

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BOLTON: And the fact is we are prepared to sit down with North Korea. We have sat down with North Korea bilaterally in the context of the six-party talks hosted by China. It's North Korea that's been boycotting those talks for 13 months. So if they want to talk to us, all they have to do is buy a plane ticket to Beijing.

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HARRIS: China's U.N. ambassador is now signaling that his country may be willing to support limited sanctions against North Korea after its nuclear test announcement.

New developments in the Mark Foley e-mail scandal. Last hour, the House speaker spoke again on the investigation. Dennis Hastert said he will dismiss any staffer if they covered up concerns about the former congressman's conduct with pages.

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REP. DENNIS HASTERT (R-IL), HOUSE SPEAKER: We have investigations going. We have the Ethics Committee doing an investigation. We have the U.S. attorney general or the -- and the FBI doing an investigation. And on Foley, we have the state of Florida doing an investigation.

If anybody is found to have hidden information or covered up information, they really should be gone.

(END VIDEO CLIP) HARRIS: As investigators try to figure out who knew what, when, there's this. Arizona Congressman Jim Kolbe says he sent a former page's complaint about e-mails to the House clerk several years before the scandal broke. Kolbe says he never discussed the matter with Foley directly.

Convicted sniper Lee Boyd Malvo enters a formal guilty plea to six fatal shootings in Maryland in 2002. Malvo will be sentenced in November. He's already serving a life sentence for sniper shootings in Virginia.

Malvo testified in May against his one-time mentor, John Allen Muhammad, as part of a plea agreement. That testimony helped prosecutors win convictions against Muhammad.

A threat to kill. The transcript of a 911 call from last week's shooting at an Amish school has been released this morning. It reveals the gunman threatened to kill his hostages in two second if authorities did not leave the property.

Charles Roberts told a Lancaster County, Pennsylvania, dispatcher, "Don't try to talk me out of it. Get them all off the property now." When the dispatcher asked Roberts to stay on the phone so he could be transferred to state police, Roberts replied, "Right now, or they are dead in two seconds."

Roberts stormed the school on October 2nd, armed with several guns. He ended up killing five girls and wounding five others. Roberts also killed himself.

There had been three other school shootings across the country in the past two weeks. And that increase in violence prompted the Bush administration to sponsor a school safety conference. Administration officials and educators are meeting in Maryland today. They are working on ways to address violence before and after it happens.

President Bush will address the group at 1:15 Eastern Time. And we'll bring you his remarks live in the "NEWSROOM".

Along the U.S.-Mexico border in southern California a rescue effort is now under way. Five people are trapped in a storm drain. Two others have been rescued. Authorities say they were trying to cross into the United States from Mexico when they were trapped. Rescue crews from California and from Tijuana, Mexico, are working at both ends of the tunnel.

Let's get a check of weather now. Jacqui Jeras is in the weather center for us.

Hi, Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Hey, Tony.

(WEATHER REPORT)

HARRIS: And be sure to join Kyra Phillips and Don Lemon in the "NEWSROOM" at 1:00 p.m. Eastern Time. Kyra will be speaking with Donald Trump in the 3:00 p.m. hour.

Meantime, YOUR WORLD TODAY continues after a quick break.

I'm Tony Harris.

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CHURCH: Welcome back to YOUR WORLD TODAY. I'm Rosemary Church.

HOLMES: And I'm Michael Holmes. It is time now to update you on the main stories of the day.

Iraqi security forces have discovered 60 more bodies throughout the capital. Officials say the corpses showed signs of torture. Their hands and feet had been bound, some of them were blindfolded. More on this story in a few moments.

CHURCH: Well, just four weeks before the U.S. midterm elections, Republicans are in damage control mode over a scandal involving Congressman Mark Foley. A CNN poll shows widespread dissatisfaction with how the Republicans addressed the allegations about Foley. The polls also found the scandal could cost U.S. House Speaker Dennis Hastert his leadership post.

HOLMES: North Korea's closest ally, China, is not ruling out sanctions as the U.N. Security Council considers a response to Pyongyang's reported nuclear tests. The United States is characterizing the situation as one between, quote, "North Korea and the rest of the world."

CHURCH: Well North Korea's neighbor to the south says it won't support any U.N. resolution against Pyongyang backed by the use of military force. Meanwhile, North Korea's nuclear tests is the number one topic of conversation on the streets of Seoul.

Sohn Jie-Ae reports.

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SOHN JIE-AE, CNN CORRESPONDENT (voice-over): Emotions are running high. "Down with Kim Jong-Il!" shouts this conservative group, as they set fire to the North Korean flag and pictures of the country's leader.

Moments later, police move in. The older generation, the ones that lived through the Korean War, often take a harder line.

"My hometown is in North Korea, so I know them well," says this man. "The North Koreans are not going to listen to us. They listen to no one."

Young South Koreans often have broader horizons. They have more practical concerns. "I'm worried this will bring down our economy," says this young man. "It's already hard to find good jobs."

In the streets and on the air waves, the talk is all North Korea. (on camera): At KBS's 24-hour radio news channel today, North Korea is the subject of almost all of the programs. And the news of the nuclear tests is providing fertile soil for some heated discussions.

(voice-over): Radio show's Esther Park gets her daily current affairs program under way. "Once again," she says, "the Korean peninsula is in crisis." Park has invited guests with widely differing views onto the show.

"North Korea is like a burglar with a knife at our throats," says this conservative lawmaker. "We must not give in," she says. She wants all aid and even business ties cut.

But a left-wing lawmaker says it's more important than ever to maintain South/North ties. And in the view of this former minister, there is now a better chance for dialogue between North Korea and the United States because, he says, Washington will be forced to talk with Pyongyang.

Park says she's getting more than the usual number of calls from people whose views are very strong and far apart. But a common thread emerges on Internet surveys. About two-thirds of South Koreans polled say the nuclear tests pose a serious dangers to the country's future.

Sohn Jie-Ae, CNN, Seoul.

(END VIDEOTAPE)

HOLMES: Although North Korea is far from Jerusalem, the alleged nuclear test did send ripples across the east. Israel is interested in the deals with North Korea to see how it might relate to a nuclear Iran.

John Vause reports.

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JOHN VAUSE, CNN CORRESPONDENT (voice-over): Call it diplomatic nuclear fall-out. When Pyongyang announced it had tested a nuclear device, the shock waves were felt thousands of miles away in the Middle East; in particular, what it meant for one of the other founding members of President Bush's so-called axis of evil, Iran.

MIRI EISEN, ISRAELI GOVERNMENT SPOKESWOMAN: I think that that would be our biggest fear. The fact that they would look and say look, the North Koreans can do it, we can do it.

VAUSE: And the Israelis fear an unchecked North Korea could export nuclear technology.

GERALD STEINBERG, JERUSALEM CENTER FOR PUBLIC AFFAIRS: And there's a lot of concern that North Korea, which has been selling and providing missile technology and perhaps some nuclear know-how, will now be able to do it a lot more and help accelerate the Iranian nuclear program. VAUSE: In defiance of the West, Tehran has pushed ahead with a nuclear program, claiming it's for peaceful purposes. But Israeli intelligence believes the Islamic republic could be just years away from producing a nuclear weapon.

Iranian officials though, criticize North Korea and call for nuclear disarmament; in particular pointing the finger at Israel, widely thought to have its own undeclared nuclear arsenal.

"Iran is against the use and production of nuclear weapons," said this government spokesman. "No country is confident to use nuclear weapons."

Israel is closely watching how the U.N. deals with North Korea, a possible indication of how far it's willing to go with Iran. But Israeli officials from the prime minister on down warn that a nuclear- armed Iran will not be tolerated.

EFRAIM SNEH, ISRAELI PARLIAMENT MEMBER: The mere presence of nuclear weapons in Iran in the hands of leaders who are committed publicly to wipe out the Jewish state makes the life here impossible. So, don't expect that the Israelis will be able to learn to live under such a threat.

VAUSE (on camera): Israeli officials stress there's a big difference between Tehran and Pyongyang, especially when it comes to international sanctions. They argue Iran, with a larger economy and sizable middle class, is a lot more vulnerable than impoverished North Korea.

John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

HOLMES: And keep up to date on North Korean developments by logging on to our Web site, CNN.com/northkorea. There you will find detailed reports, galleries, also access to free video.

CHURCH: All right, to Iraq now. And security forces there are investigating whether Sunni/Shiite sectarian strife is behind the death of 60 more people in Baghdad. Iraq security forces found 60 bodies throughout the capital all in a 24-hour period.

Cal Perry has the latest on the violence there.

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CAL PERRY, CNN CORRESPONDENT (voice-over): This is the scene after the bodies are found. How bad is the sectarian violence in Iraq? Bodies are the barometer. And in one day, more than 60 were found in the capital, many of them mutilated, executed, bound. Relatives grieving outside hospitals to collect their loved ones.

This, a scene that has played out in the capital more than 280 times so far this month. No end in sight to the tit-for-tat sectarian killings. COL. JEFFREY MCCAUSLAND, U.S. ARMY (RET.): We have added to that deadly mix, inter-sectarian violence, which is the centerpoint of everybody's attention in Iraq. And, obviously, if we can't dampen down the inter-sectarian violence, the possibility of civil war certainly looms large.

PERRY: Besides the mounting toll of Iraqi casualties, a deadly October continues for U.S. troops; more than 30 killed in combat in the first ten days of October. Most of them as U.S. and Iraqi forces press ahead with Operation Together Forward, aimed at flushing extremists out of Baghdad. More U.S. troops on the streets means more U.S. casualties.

MCCAUSLAND: We've seen this dramatic upsurge in killing, particularly in Baghdad, and certainly we must get control of that situation. And the next few months will be certainly critical in that effort.

PERRY: Operation Together Forward has yielded its successes, according to the U.S. military, saying that overall tax are up, but their quote "effectiveness" is down.

(on camera): The U.S. and Iraqi military are suffering their losses in and around Baghdad. But the sectarian violence continues to take its toll on the civilian population. To date, more than 300,000 Iraqis have been displaced by ongoing sectarian violence.

Cal Perry CNN, Baghdad.

(END VIDEOTAPE)

CHURCH: Another story we've been looking at. Journalists often risk their lives covering stories that reveal dark secrets.

HOLMES: Yes, and coming up, Russians remember a dedicated reporter and question the circumstances of her killing.

CHURCH: We'll also bring you a story about incredible business success, a 1 $.6 billion acquisition that could effect the future of uploading video on the web. We'll take a look. Stay with us.

(COMMERCIAL BREAK)

HOLMES: Dramatic pictures from Norway. Three people killed when a charter plane skidded off the runway, caught fire and crashed into the side of a mountain. The plane crashed while trying to land at a small airport in southwestern Norway. Twelve people survived the crash, believe it or not, without injury. One person, however, is still missing. The cause of the accident under investigation.

And welcome back, everyone. This is YOUR WORLD TODAY.

CHURCH: We bring viewers around the globe up to speed on the most important international stories of the day. More tributes are pouring in for a crusading investigative journalist whose murder three days ago highlights the risks run by those who criticize Russia's power. One human rights campaigner says Anna Politkovskaya lived and die a hero. Hundreds paid their final respects at her funeral on Tuesday.

Senior international correspondent Matthew Chance reports from Moscow.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN SR. INTL. CORRESPONDENT: She was one of Russia's most outspoken journalists, a fierce critic of the Kremlin and a tireless campaigner for human rights. Through her reporting, Anna Politkovskaya touched the hearts of many. Hundreds gathered to pay their respects.

For years, Anna risked her life covering Russia's war in Chechnya. She is killed in her Moscow apartment building, shot four times at close range. Security cameras recorded a few glimpses of the man police say may have been the killer. But few believe he was anything more than a hired gun. This had all the hallmarks of a contract killing.

She's hardly the first Russian journalist murdered for her work. The country has an appalling record of protecting its reporters. Advocates for a free press say those who expose corruption or, like Anna, investigate abuses of power, are most at risk.

OLEG PANFILOV, JOURNALISM IN EXTREME SITUATIONS (through translator): Since 1994, not one murder of a journalist killed for their profession has been solved. I think it's because most of those crimes were initiated by members of the ruling establishment. I doubt we'll ever find out who ordered the murders of any of them.

CHANCE: At the offices of "Nava Gazetta (ph)," the Russian- language newspaper where Anna worked, staff are regrouping after her murder. The paper's editor says Anna is the third reporter he's lost to assassins in six years.

Russia has a shrinking democracy, he told me, and that poses a real danger to people's lives, especially those involved in investigative reporting. If only Russia had independent courts or a law enforcement system that wasn't so corrupt, it could make all the difference, he says. But Russia today has neither. And now it has one less voice of conscience as well.

(on camera): Anna Politkovskaya was a woman of enormous courage, brave enough to write about subjects few others in Russia would dare touch. In a country where the free press is under constant threat, a leading independent voice has been silenced.

Matthew Chance, CNN, Moscow.

(END VIDEOTAPE)

HOLMES: Well as Matthew mentioned there, Politkovskaya's murder is drawing widespread concern about media freedom in general in Russia. CHURCH: It is. Her slaying also fuels concerns that Russia's backtracking on democracy. With Anna Politkovskaya death, at least 43 journalists have been killed in Russia since the Soviet Union collapsed in 1991.

HOLMES: At least 12 lost their lives in apparent contract killings, since 2000 when President Putin came to power.

CHURCH: Now Russia is the third-most deadly country for journalists.

HOLMES: And Iraq and then Algeria head the list, according to statistics compiled by the New York-based Committee to Protect Journalists.

CHURCH: Well, in the next edition of its magazine, the Committee to Protect Journalists names Politkovskaya as one of the world's top freedom press figures of the past 25 years. More now on her legacy and on press freedom in Russia, we go to Abi Wright, spokeswoman for the Committee to Protect Journalists.

Thank you so much for talking to us. It is an unfortunate day, very sad on many levels. A lot of people worried that her death signals an end, if you like, to press freedom in Russia. Is that a valid fear?

ABI WRIGHT, COMMITTEE TO PROTECT JOURNALISTS: Well, with (INAUDIBLE) research, we found rather sadly that it's part of a continuation of a deadly trend that we've been documenting. As it was stated in the report, since Vladimir Putin came to office in the year 2000, 13 journalists have been killed in similar contract-killing styles, which is to say they were targeted and hunted down and silenced deliberately. So sadly it's part of a larger pattern, part of a larger problem.

And one step towards ending this pattern would be for President Vladimir Putin to come out very strongly, publicly condemning this action. He was silent in the few days following the murder on Saturday. He's made some comments about it in discussions with different leader, with President Bush and with Chancellor Merkel of Germany, but we are calling on him to publicly condemn this murder of Anna Politkovskaya in the strongest language possible to send the message that, you know, that the pattern will stop, the impunity will end, and that journalists will no longer be fair game in Russia.

CHURCH: As you said, President Putin silent in the days that followed, but we have heard him say today, "sickeningly cruel crime," that's how he's referred to it. And he said it won't go unpunished. But just what evidence is there that he's being to pursue this and ensure that the killer or the killers are found, and will this doesn't happen again?

WRIGHT: You know, there's very little evidence. His track record so far is not stellar, to be honest. There have been no convictions in any of the 13 murders since he came to power. This is a man who came to office pledging to put in place a dictatorship of the law, someone who has a reputation for instilling law and order in society.

And yet, we see these murderers going free. No convictions in any of the cases. And that's why we think it's so important for him to send a clear signal to authorities, that the era of official indifference about the murders of journalists in Russia is coming to an end, that he personally wants those responsible for this murder held accountable in a court of law, and that there will be no more tolerance for the silencing of journalists in Russia.

CHURCH: How likely is it though that this investigation will lead to the tracking down the killer or the killers and that this will come to an end. How likely is that?

WRIGHT: Well, I understand your question. You know, the record does not inspire a lot of hope. However, Anna Politkovskaya was such a unique individual of such strong stature, both within Russia and internationally. The outcry, the outrage over her murder, her cruel, tragic murder has been so loud from all corners of the world.

Even today we had in Russia the American ambassador in attendance at her funeral. She was just such a unique, uncompromising, relentless reporter. That we're hopeful that international pressure will help make a difference. That this spotlight on Russia's horrible track record for press freedom will force officials to finally take action, and end the impunity there.

CHURCH: Indeed. All right, Abi Wright, talking to us today, thank you so much.

WRIGHT: Thank you.

HOLMES: A brave reporter. Well, the next story we are going to bring you is the type of story that dreams a night of.

CHURCH: It is coming up, rags to riches. We always love those stories. How a simple idea about watching TV on the computer created two more Internet millionaires.

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HOLMES: Welcome back, everyone. When Steve Chen and Chad Hurley founded YouTube early last year, few people bothered to visit the Web site initially. And then a video from the U.S. comedy show "Saturday Night Live" appeared and millions clicked on to watch. The thing is, they kept clicking, turning YouTube into a massive success and its founders into freshly minted millionaires.

To learn more about them, we are joined by Dennis Kneale, managing editor of "Forbes" magazine. And good to see you, Dennis. First of all, were these guys lucky or smart or both?

DENNIS KNEALE, MANAGING EDITOR, FORBES: That's the big debate rolling through Silicon Valley today. As a long-time Silicon Valley friend of mine said, they got hit with the lucky stick. Well I think there's a lot more going on than just that because a lot of people out there are trying to get lucky and haven't been able to when it comes to the next Internet revolution. And these guys are helping create it.

HOLMES: You know, the funny thing is though, there's a bunch of video Web sites out there. I was reading today in "New York Times" and they were listing like half a dozen I've never heard of. What makes these guys the ones that got all the publicity, then got the talk out there and became big?

KNEALE: Well, one thing that did it was because it's that mix of user-generated stuff that consumers themselves make. But also someone sees a skit they like on "Saturday Night Live" and they throw it up there. And you go there to see that. And then the company will fix it if a copyright holder, like NBC complains.

But something happens where the site just becomes like a crowded restaurant. Everybody goes there because everybody goes there. And a community is sprung up where one guy will post video of something and then a dozen others will come up with their own videos related to it, and before you know it, they've built a ground swell.

HOLMES: Yes, I know, I must admit, I'm addicted myself. I check in on it every day or so. It's interesting, too, we see these young fellows doing their thank you's to their supporters on YouTube. Tell me about them. I mean, they work for PayPal, I think? What happened?

KNEALE: Yes, Steve Chen and Chad Hurley. Chad Hurley is a design guy and into elegance and simply user interface. Chad Hurley, the CEO. Steve Chen is kind of the techie/networking guy. He wears his hair really spiky. They are young, they're still almost kids. They are not even 30 yet. And they are having a ball. I've gone out drinking with them. They are good guys.

Who knows if they'll ever talk to any of us now? I think each of them will probably be worth $200-$300 million. The nice thing about America is though, given capitalism and the profit motive, we're kind of aspirational and we kind of like that and we celebrate them. They are the next two Google guys. They're now the two YouTube guys.

HOLMES: Yes, well I hope next time you go out for a beer with them, they pay. Does this indicate anything in the bigger picture? Is this a potential return to the good old days or bad old days of like entrepreneurs.

KNEALE: That is what the "New York Times" on the front page is saying today. Oh my gosh, is this the next bubble? The answer is no, this isn't. This isn't a bunch of individual investors buying stock in a company because it sells pet food online. This is far bigger than that. This is one of the smartest companies out there, Google, deciding that it's worth to pay $1.6 billion to get hold of this audience of 35 million visitors every month who go there and watch video. It is the next entertainment revolution.

HOLMES: Wow, a lot of people. Dennis, great to talk to you. Dennis Kneale, "Forbes" magazine."

CHURCH: Great story.

HOLMES: It's a terrific story.

CHURCH: That's it for this hour. I'm Rosemary Church.

HOLMES: And I'm Michael Holmes. We've chatted too long, we've got to go, bye.

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