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CONNECT THE WORLD

Russian Espionage Ring Busted; Deadliest Month for Coalition Troops in Afghanistan; World Cup Highlights

Aired June 29, 2010 - 16:00:00   ET

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


MAX FOSTER, GUEST HOST: An 11th arrest in an alleged Russian espionage ring in the U.S. It comes a day after that read like a spy thriller -- 10 quick roundups across America. There could be ramifications. Moscow says the whole thing is aimed at damaging relations, just as they were beginning to get better.

On CNN, this is the hour we connect the world.

You can imagine, every country has spies hidden all around the world. But when they're caught, it causes an international scandal.

I'm Max Foster in London with that story and its ramifications.

Also tonight, it's the deadliest month ever for coalition troops in Afghanistan. We're going to speak with Germany's defense minister to see if his country will have the nerve to stay the course.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): The reason behind the coup in Venezuela and the invasion of Iraq is the same.

(END VIDEO CLIP)

FOSTER: The second part of our interview with Director Oliver Stone, seen here spending time with Hugo Chavez. He's our Connector of the Day.

And Spanish football fans -- they look happy enough right now, but will they feel the same in 20 minutes?

We'll be live in Capetown with the latest, as well as on the border of Spain and Portugal for reaction to one of the biggest matches of the World Cup so far.

Just days after the U.S. and Russia declared a reset in relations, new controversy has the former cold war rivals at odds once again. Washington is accusing 11 people tonight of being long-term deep cover agents for the Kremlin.

Let's bring in Deborah Feyerick, covering the case from New York -- Deborah, you've got more details on those who were arrested?

DEBORAH FEYERICK, CNN CORRESPONDENT: Absolutely. And, you know, Max, this was an investigation that was going on for more than a decade. But one of the women accused of being a spy is described by an acquaintance as not so much James Bond as she is James Bond's girlfriend.

Anna Chapman is a striking 28-year-old entrepreneur. She's seen in pictures from her Facebook page. She appears to have started Domdot.ru, a search engine for Russian real estate, whether or not the business was genuine. The FBI calls Chapman a highly trained intelligence operative who passed encrypted data to a Russian official in New York.

Now, another woman accused of being a spy in Boston is also in real estate. On her Web site, Ann Foley is described as a native of Montreal who quote, "lived and was educated in Switzerland, Canada and France." According to court papers, her alibi on a trip to Russia was to shay -- was to say that she was working as an international business consultant. And her husband, Donald Howard Heathfield, is an international sales consultant for an energy company. He's also under arrest. Prosecutors say that a birth certificate with his name was found in a safety deposit box and that the certificate itself appears genuine. Prosecutors say the real Donald Howard Heathfield passed away five years ago.

Another picture emerging of the 11 alleged spies. One of them worked as a journalist for the New York-based Spanish language newspaper, "El Diario." Vicki Pelaez is accused of traveling to South America, where she received $76,000, allegedly for recruiting sources to tap into policy- making. On a wiretap, her husband, Juan Lazaro, who claimed to be born in Uruguay, is allegedly heard telling his wife that he and his parents moved to Siberia when the war started.

Now, as you mentioned, 10 people were arrested yesterday. The 11th was apparently picked up today in Cyprus -- Max.

FOSTER: Deborah, how were they communicating, because the -- from what I've seen from all the prosecutors are alleging, I mean we refer to a -- a spy novel, but it really is unfolding that way, it seems.

FEYERICK: You know, it really is. The other thing that's missing is exactly what kind of information they were passing to one another. We've heard a lot of talk about encrypted data, that they were using computers on sort of this private wireless network to talk to one another, that they were transmitting data electronically, all of it coded so that you needed a decoder to make sense of it.

But we don't know exactly who they recruited or, whether, in fact, they were able to get any significant information. They're not being accused of espionage. They're being accused of being spies in the United States. That carries a sentence of about five years should they be convicted.

FOSTER: All right, Deborah in the U.S.

Thank you very much, indeed, for that.

Well, news of the arrests in the United States triggered an irritated response in Russia. Moscow does acknowledge the suspects are Russian citizens, but says they in no way harmed U.S. interests. The Russian government is also questioning the timing of the arrests, as our Matthew Chance now explains.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): Well, the Russian foreign ministry has reacted sharply to allegations that Moscow ran a spy ring in the United States, saying the arrests are unfounded and have what it calls "unseemly goals." A statement by a foreign ministry official in the Russian capital described the incident as "regrettable" and said that things like this have happened in the past when relations between Russia and the United States are improving.

The clear implication of that being that for Russia, the timing of these arrests, so soon after a very friendly, very successful summit between the U.S. and Russian presidents, was intended to derail the reset and often strained relations between the two countries. It's a clear signal, in the words of one political analyst in Moscow, that for some in Washington, the reset has gone too far and that the United States should still be cautious of Russia.

There's also speculation among political observers in Russia that the FBI, which, of course, has revealed the alleged spy ring, may be trying to deflect attention from its own shortcomings in detecting sooner the failed Times Square bomber in May. Russian blogs and chat rooms are filled with discussion about the arrests and about the incidents.

The question now, though, is what will be the response of Moscow in terms of action?

Already, the country's foreign minister is demanding an explanation from U.S. authorities. But the real fear is this kind of damaging episode could seriously set back the diplomatic progress that's been made between these two former cold war foes.

Matthew Chance, CNN, in Minsk.

(END VIDEOTAPE)

FOSTER: The controversy may not end there, even. It could also affect Russia's relations with the United Kingdom after reports the suspected agents used fake British passports and possibly Irish ones, as well. The whole thing smacks of a cold war espionage novel, as we've been saying.

And it raises the question, what might Russia have hoped to achieve if all of these allegations, indeed, are true.

Paula Newton joins us from the -- from the London newsroom -- Paula, extraordinary accusations.

If they prove to be true, what do you think Russia was trying to achieve from this?

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: Well, I mean, Max, let's rewind a bit here. Let's feature Vladimir Putin, who is now the prime minister in Russia, but at the time, at the turn of the century, he became the president of Russia. Before that, Max, he was, of course, the head of the spy business. He was in the business of recruiting spies during the cold war.

When he became president, he wanted to restore that whole intelligence network to its former glory.

And why?

As he would tell me at the time in interviews, Max, he believes a strong Russia is not a threat to its allies, but he wanted a strong Russia. He wants leverage, whether it's about nuclear weapons or energy security -- anything that could help Russia regain its geopolitical muscle. And that's what it's about.

FOSTER: And, you know, Britain's relations with Russia haven't yet recovered from spying allegations in the past. And it really does all sort of smack of this -- of what we experienced during the cold war such a long time ago.

NEWTON: It's incredible. They are like suburban spies all of a sudden. In the suburbs of the United States, these suspected spies are posing as innocent professionals. But they were what you call so-called spotters. What they were doing was really recruiting people. They were almost working as freelancers. But they have those strong professional ties that gave them excellent cover. And, as we just said, some of those fake identities, allegedly.

Now, here in Britain, what happened was that the relations from these kinds of spying incidents that really are a throwback to the cold war haven't done anything for relations whatsoever.

I mean some of these stories, we went to these -- rival spy agencies like to play gotcha. And in 2006, Russia accused Britain of spying by placing a listening device disguised as a rock right outside the Kremlin. I mean it was incredible. They alleged -- and they had a graphic that they released to us, saying that British diplomats had downloaded data with a Palm device and -- and then, to add to that, later in that year, we had the bizarre case of Alexander Litvinenko. He was allegedly poisoned by some kind of radioactive component. Russia still refuses to extradite the main suspect in that, and yet they say they had nothing to do with this.

FOSTER: Identity theft again coming into this. We've had this previously, haven't we, in the U.K.?

How much of an issue is that?

NEWTON: It's a huge issue.

And do you know what?

This is, I think, where governments are going to start to get tough. I mean it's the dirty little secret of many spy agencies. You have several countries now investigating. I mean as many as four Canadians' identities stolen, allegedly. The British are investigating. The Irish are investigating.

This, I think, will be, where, in the corridors of power, many people will be saying, look, this really hurts our integrity and this is what we have to put a stop to.

FOSTER: Paula in the London newsroom.

Thank you very much, indeed for that.

Well our -- our next guest says the number of alleged Russian spies caught in this ring is unprecedented, but says he wouldn't be surprised if there are even more arrests in the case.

Gene Coyle is a former CIA field operations officer.

He joins me from Bloomington in Indiana.

Thank you so much for joining us.

GENE COYLE, FORMER CIA FIELD OPERATIONS OFFICER: My pleasure.

FOSTER: The term illegals has come up a lot today. These were illegals.

Explain when a spy is illegal and when he's not legal.

COYLE: Well, we're all accustomed to having intelligence officers pose as diplomats working out of embassies and consulates. The Russians, for decades, have sort of specialized in taking a Russian, spending years of training them, particularly in language, cultural training, and as we saw with whoever this person claiming to be Donald Heathfield, he first would have traveled to Canada, spent a little time there. They had it set up. They knew that the real Heathfield was dead. He gets a birth certificate. He gets a passport. Then he moves on to the United States.

This was what the meaning of illegals is. These people would be used, as someone mentioned just a minute ago, for spotting. You have the advantage, you have no connection to the Russian official community, to the embassy or anything.

Heathfield had set up this consulting firm. He had the perfect platform to be inquiring a lot of things, you know, what the Obama administration might be doing here or there around the world.

You can also use these people for handling very sensitive assets that have already been recruited wherein there is a risk, they are so high profile, so important, you didn't dare even let one of your Russian intelligence officers from the embassy or consulate work with them. That's what's sort of the next shoe I'm waiting to see...

FOSTER: Yes, this is a...

COYLE: There's...

FOSTER: This is what the whole community -- the intelligence community -- is focused on right now. Of course, still allegations at this point. Nothing proven.

But from what you see and what you hear about what's happened on the - - over the last couple of days, how does that compare to the cold war period?

Are we exaggerating references to the cold war period and what's going on today?

COYLE: Well, things have certainly changed since 1991, when the United States, Britain, the West -- it was a real confrontation of potential war. Russia and the United States are competitors. And under Putin, he certainly believes in having a strong intelligence service. They've gotten back into spying big time. Part of this has been made possible because of the shift of attention by MI5 or by the FBI here in America to counter-terrorism work.

So the classical spies has had sort of a field day over the past decade.

The other shoe I'm waiting to see is the newspaper accounts talk about how the FBI had observed some of these people meeting with Russian diplomats. Now, these people have diplomatic immunity and you can't arrest them, but you can certainly expel them from the United States. Perhaps that hasn't occurred yet out of a courtesy not to worsen US-Russian relations any more than just the arresting of these 11 people.

FOSTER: Very strong words coming from Russia about this, of course, today. If this was -- if this was the cold war, the etiquette would be, though, that Moscow would throw a few American agents out of Russia.

Let's be honest about this, every country has spies. And it has spies in other countries. This isn't just a -- a Russia specific situation. Other countries could be accused of having the same illegals in their operation.

COYLE: Right. The Russians -- or it was the Soviet Union, the KGB, now the SVR -- has always had a tradition, if one of their intelligence officers was arrested or expelled, there would be this tit for tat.

The question here would be, since we have arrested, in the United States, 11 people who claim to be businessmen, what would Moscow do?

Are you going to throw out 11 American diplomats or are you going to throw out 11 American businessmen?

How can they retaliate -- and, again, it's in their interests as well as the United States' interests this reset that has started. So both sides may be trying to keep this at a mod -- moderate level of response.

The FBI certainly felt you can't let 11 spies just run around the country.

FOSTER: OK. Gene Coyle, a former CIA field operations officer.

Thank you very much, indeed for joining us with your insight on that incredible story unfolding today.

Now, from the halls of Congress to Afghanistan, General David Petraeus makes the case for the U.S. commitment to the war against the Taliban even after American troops are set to begin withdrawing. That's next on "CONNECT THE WORLD".

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

GEN. DAVID PETRAEUS, COMMANDER, U.S. CENTRAL COMMAND: It is important to note the president's reminder in recent days that July 2011 will mark the beginning of a process, not the date when the U.S. heads for the exits and turns out the lights. As he explained this past Sunday, in fact, we'll need to provide assistance to Afghanistan for a long time to come.

(END VIDEO CLIP)

FOSTER: That's U.S. general, David Petraeus, talking about next year's planned troop drawdown in Afghanistan.

He reaffirmed President Barack Obama's commitment to the war against the Taliban well beyond that date. Mr. Obama has tapped Petraeus to replace General Stanley McChrystal as the top U.S. commander in Afghanistan. The U.S. Senate Armed Services Committee voted to move Petraeus' nomination to the full Senate following today's hearing.

Now, as General Petraeus spoke in Washington, the war in Afghanistan marked a somber milestone. June is now the bloodiest month ever for coalition troops in the country. One hundred deaths this month alone.

Atia Abawi tells us NATO and U.S. commanders warned this would happen.

(BEGIN VIDEOTAPE)

ATIA ABAWI, CNN CORRESPONDENT (voice-over): A very grim milestone met in the month of June -- the most NATO forces were killed in this month than any other since the start of the war in 2001. There are many reasons behind this rise in numbers. But it was not unexpected. In fact, the former top NATO commander, General Stanley McChrystal, last year, when he introduced this new counter-insurgency strategy, as well as new tactical directives, he said that, in fact, ISAF casualties will rise at first. But as they started to win the war, the numbers would simmer down.

Another reason behind the rise is IEDs. It's the Taliban weapon of choice. And it's been a very successful weapon in their arsenal, accounting for nearly 80 percent of NATO casualties in the war here in Afghanistan.

The higher death toll is not the only challenge that General David Petraeus will have to face when he comes to Afghanistan to take over for General Stanley McChrystal as the top NATO commander. This is a different challenge than he faced in Iraq. Even he said in 2008, that Afghanistan is the tougher fight. The fighting is spread out throughout the country in a torturous terrain. And he's dealing with a country that's much poorer and with a weaker government.

Speaking of governments, he has to build relationships -- relationships that General McChrystal took a year to build, including his bond with President Hamid Karzai of Afghanistan. President Karzai had a very strong relationship with General McChrystal and it's going to have to start from scratch with General Petraeus.

Atia Abawi, CNN, Kabul.

(END VIDEO TAPE)

FOSTER: Germany is NATO's third largest contributor of troops to Afghanistan, following the U.S. and Britain. And Germany holds a special election tomorrow that was triggered by President Horst Koehler's resignation over statements he made about Germany's military mission in Afghanistan.

I spoke earlier with Germany's defense minister.

And I asked him about pressure to pull troops out.

(BEGIN VIDEOTAPE)

KARL-THEODOR ZU GUTTENBERG, GERMAN DEFENSE MINISTER: In Germany, there's still a lot of skepticism when it comes to -- to the mission as such. But there's a growing understanding for what the soldiers are doing there. And it's based on -- on -- on a -- let's say, a strategy I have chosen a couple of months ago that I had said after the first -- after describing the realities in Afghanistan to the people and firming up on that, we -- we could adapt our strategies, as well.

FOSTER: And what does that mean?

How committed are you to the current troop levels and how long will they last?

GUTTENBERG: Well, first of all, we are still the third biggest troop supplier in Afghanistan. And that's -- and -- and we are offering more than 5,000 soldiers of the -- within this year. And -- and we have always said that there has to be a starting off moment also for -- for a process of withdrawal, but not setting an end date.

FOSTER: In the best case scenario, when do you see a case where German troops will no longer be in Afghanistan, at least not combat troops of any sort?

GUTTENBERG: Well, the best case would be that nobody is being forced to switch out the light in Afghanistan. And I think it's -- it's a matter of the whole alliance and not of a single part now to withdraw. And I don't -- I don't look for any certain dates, but I say we need to start the process -- a process of handing over responsibility, but this is connected to the success of training. And this was what we have started already. And I think there is now a continuation -- hopefully, there's a continuation in the U.S. strategy we are facing right now.

FOSTER: I just want to talk about President Horst Koehler. He resigned, of course, claiming the military deployment is sometimes necessary to protect Germany's free trade routes, linking defense to economy.

Is that a view that you agree with?

GUTTENBERG: I agree with the -- with -- with a -- with the notion that stability and security is -- has to be also connected to trade interests and can be connected to trade interests. I think I have difficult to agree with is to connect the Afghanistan commitment to trade interests, but to -- to connect security and stability to trade interests is something which is absolutely fine. It's quite hard to explain that to the Germans. It is possible to do so. And I would have -- would have liked to have seen a bit more people supporting Horst Koehler in those very sentiments.

(END VIDEO TAPE)

FOSTER: Coming up next, it's been two centuries since he was born, but a dedicated team of musicians is keeping his memory alive in Poland today. The legacy of Frederic Chopin is just ahead.

(COMMERCIAL BREAK)

FOSTER: All this week, we're bringing you special reports from Poland, as part of CNN's I-List series. The I-List shines the spotlight on a different country each month, with stories you won't see anywhere else.

We began on Monday with a look at Poland's economy, which stands apart from the rest of Europe as the only country to avoid recession.

And despite a year of disaster, including a plane crash which killed its president, Poland has remained strong.

Tonight, we turn our attention to one of Poland's most famous sons. He was born 200 years ago, but his legacy lives on.

Frederik Pleitgen meets some of the people working to keep Frederic Chopin's music alive in the country of his birth.

(BEGIN VIDEOTAPE)

(MUSIC)

FREDERIK PLEITGEN, CNN CORRESPONDENT (voice-over): Some say the music of Frederic Chopin is like a soundtrack to the Polish nation.

(MUSIC)

PLEITGEN: He remains an idol to young pianists like Marek Bracha, who played for us in the very room Chopin was born in some 200 years ago.

(MUSIC)

MAREK BRACHA, PIANIST: In Chopin's music, it's quite natural to express yourself, to express your emotions, to express your musicality. This is kind of typical stuff that you can't find anywhere else.

(MUSIC)

BRACHA: This is the kind of thing that -- it's kind of really, really dance -- with a dancing spirit here. And I think it's -- it's -- when you hear a pause, you can recognize it readily.

PLEITGEN: (INAUDIBLE)

BRACHA: Yes.

PLEITGEN: That (INAUDIBLE)...

BRACHA: Yes.

(MUSIC)

PLEITGEN: 2010 marks the 200th anniversary of Chopin's birth and Poland has declared it the year of Chopin.

(MUSIC)

PLEITGEN: The country has spent more than $100 million on concerts, events and infrastructure, like musical benches that play the composer's music.

(MUSIC)

PLEITGEN: And the Frederic Chopin Museum in Warsaw, with an interactive exhibit for children, listening booths where visitors can follow the scores along with the music...

(MUSIC)

PLEITGEN: And, of course, one of the master's own pianos.

ANDRZEJ SULEK, DIRECTOR, CHOPIN MUSEUM: The main idea was to create a museum which will make the person of Frederic Chopin close to our modern experience. We wanted to show Chopin as a person who wanted to treat of this city, of his hometown, Warsaw.

PLEITGEN: Chopin the virtuoso -- a musical icon of his day whose work has inspired millions around the world and whose repertoire is among the most popular for classical musicians. Those behind the Chopin Year say they want to ensure his legacy will live on.

WALDEMAR DABROWSKI, HEAD OF CHOPIN 2010: The value of his work has not been diminished in time. Just on the contrary, it's growing. He was the one who was capable of defining the Polish idiom in the most beautiful way one can imagine.

(MUSIC)

PLEITGEN: Young virtuous like Marek Bracha pay tribute to Chopin's influence. Bracha is in the final round of Poland's National Chopin Competition.

(MUSIC)

BRACHA: It is a special person for our country. I think everybody knows Chopin around the world and all the musicians play Chopin a little bit. But it's -- yes, it -- it's -- it's kind of a good sound -- a good mark of -- of -- of Poland.

(MUSIC)

PLEITGEN: Fred Pleitgen, CNN, Zelazowa Wola, Poland.

(END VIDEO TAPE)

FOSTER: Tomorrow, our series on Poland continues. We will tell you about an unusual trend that's helping to boost the economy there. You've heard of the brain drain when educated people leave a place to live and work elsewhere. Lately, Poland is experiencing a bit of a brain gain and we'll tell you why tomorrow at this time on CONNECT THE WORLD.

Up next, we're live at the World Cup, where Spain has just knocked out Portugal.

And here's an interesting connection for you. Find out how one restaurant in Bethlehem is using a barrier meant to separate Israelis and Palestinians to bring football fans together.

(COMMERCIAL BREAK)

FOSTER: You're watching CONNECT THE WORLD. I'm Max Foster. Let's get straight to the headlines this hour.

(NEWSBREAK)

FOSTER: The 2010 World Cup has witnessed its first has witnessed its first penalty shootout. After two goal-less hours on the pitch, only the spot (ph) kicks could separate Paraguay and Japan in their round of 16 match. The South American team edged their way through to the last eight, winning 5-3. In the quarter finals, Paraguay faces the winner of the match between Spain and Portugal. That has just come to a close. For the final score let's cross over to Alex Thomas, who is in Johannesburg.

Alex.

ALEX THOMAS, CNN SPORTS CORRESPONDENT: Spain are through to the quarter finals, they are the eight and the final of the countries to reach that stage. The round of 16 is over, and it was arguably one of the highlights of the round. Nil-nil for a long time, but Spain's pressure toward the end.

Let's take a look at the action which took place in Cape Town this evening. And it all started in the second minute when Fernando Torres hit a shot from the edge of the box, which falls to great save from Portugal's goalkeeper Eduardo. And in the 21st minutes, Portugal's Tiago (ph) had a long-range shot, blocked by Ica Caseas (ph). Hugo Almeda (ph) tried to finish it up, but Caceas (ph) tipped the ball away. Spain, fell just shy of the goal in the 61st minute, when substitute Fernando Lorente (ph) nearly headed them in front. Eduardo with the save again.

Spain finally breaking the deadlock moments later. David Villa strikes, and Eduardo made the save before spinning it, Villa making no mistake with the rebound. In the 89th minute, Portugal down to 10 men when Ricardo Costa (ph) elbows Juan Captavia (ph) and he's shown a straight red card.

Portugal tried to go on the attack, but Spain held on for a 1-0 victory and they go through to a last eight meeting against Paraguay.

And, Max, I can take you through the action from the earlier match, which took place in Pretoria. Paraguay against Japan, a bit of a dull affair, it has to be said. No goals throughout the 90 minutes. We'll show you the pick of what action there was, though. And Paraguay had the majority of the possession. They had the first decent chance, as well. But there was also a chance for Japan's Diasuke Matsui, he rattled the crossbar from 20 yards out. After normal and extra time finished goal- less, it went to penalties and Christian Reveros (ph) spot kick put Paraguay 3-2 up in the shootout. It mean Nuichi Kimano (ph) came up next for Japan, he hit the crossbar, he's never scored for his country. And he's still waiting for that elusive goal, after two more successful kicks for each side, Oscar Cardoso had the honor of stepping up for Paraguay, and after a slow run he placed his drop past Japan's goalkeeper, it meant Paraguay won 5-3 in the World Cup's first penalty shootout of this tournament. Paraguay through to the quarter finals, for the first time in the country's history. So Paraguay against Portugal-Paraguay against Spain, I beg your pardon-completes the quarter final line up for the 2010 World Cup, Max.

FOSTER: OK, Alex. Good stuff. Thank you very much, indeed.

Spain and Portugal share a border, of course, but their football fans are fierce rivals, as you can imagine. Because they live so close to each other. Never more so have we had that rivalry then today. And Al Goodman has been gauging all of that. He's on the border.

Al, right?

AL GOODMAN, CNN INT'L. CORRESPONDENT: I am indeed, Max. I am in this Spanish border town of Badajoz, just a couple of miles to the border. And over to the other side, we have been over there this day. We're going over there now. But I can tell you, in this bar, it was mayhem when David Villa score that 1: 62 into this game, to put the only ball in the net of the whole game. This place absolutely ecstatic and now a lot of these people have gone off to go to other fiestas, here in this town. But we did talk to a woman who told us that she says, look, we're neighbors of Portugal. We live right next to them. They're our friends. But when it comes to football, sorry, we won, Max.

FOSTER: Al, thank you so much. The closer they get the more fierce the rivalry.

The World Cup spirit can't break down the barriers separating Israel from the West Bank, either, but it can put the wall to good use, connecting the communities living close to it. Paula Hancocks shows us how.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN INT'L. CORRESPONDENT (voice over): It was built to divide, but for four weeks only, in Bethlehem, one restaurant is using the West Bank wall to unite. Football fans of all nationalities are flocking to watch the games projected onto the wall the Israelis say they built for security, which the Palestinians say is part of a land grab.

UNIDENTIFIED FEMALE: I think it is a very ironic statement. Like I think, they are becoming very cynical and pointed about it, that you sort of take this thing that they have not control over, the wall, and in a way takes back a little control.

UNIDENTIFIED MALE: They're trying to use a negative image in everyday life, and to put a positive sign, to the people who live here. Or maybe even more, like tourists.

HANCOCKS: Just as football is a game of two halves, this wall is a symbol of two sides. But it is a political symbol that has temporarily become a sporting asset, broadcasting all of the evening World Cup games.

(On camera): It's not the first time that this restaurant has actually used its wall to its own advantage. Just two years ago, the owner decided to use these 12 meter concrete slabs as a backdrop to the menu.

(voice over): The Bahamas' Seafood Restaurant is certainly making money out of this, but the owner says he'd do anything to change is concrete view.

JOSEPH HAZBOUN, RESTAURANT OWNER: I'm a fan of peace. So, I hope one day, you know, that the wall goes down, Palestinians, Israelis, foreigners, everybody can live in peace and that sport affair.

HANCOCKS: But for now, his clients have to settle for good food, good beer, and good football, as long as you are on the winning side, of course.

(CHEERS, SHOUTING)

Paula Hancocks, CNN, Bethlehem.

(END VIDEOTAPE)

FOSTER: And lots more football to come in the World Cup. You are watching CONNECT THE WORLD. We'll be back in just a moment.

(COMMERCIAL BREAK)

FOSTER: It is time now to take an unflinching look at a brutal crime that happens everywhere. But we're going to focus today on Pakistan, where a 13-year-old girl says she was gang raped. But as Reza Sayah tells us, she is refusing to be shamed in silence.

(BEGIN VIDEOTAPE)

REZA SAYAH, CNN INT'L. CORRESPONDENT (On camera): Thirteen-year-old girls are supposed to be thinking about school and playing with their friends. But a girl we'll call Sana to protect her identity is in the fight of her life. She's taking on five police officers she says illegally imprisoned her, and gang raped her for 15 days.

SANA (translation on screen): They have ruined my life. They should get the maximum punishment so that no daughter or sister will ever have to go through what I went through.

SAYAH: This is where Sana says she was held captive and raped. And interrogation room at a police station an hour outside of Islamabad. Police say they brought Sana her to question her about the murder of her uncle. A crime police now admit she had nothing to do with.

SANA (through onscreen translation): They forced me to dance and do foolish things. Ne policeman took his clothes off in front of me. When I asked him why he's doing this he started beating me. When I complained to the officer in charge he started laughing at me. Before they raped me they used to get drunk.

SAYAH (on camera): So how often does it happen?

TAHIRA ABDULLAH, HUMAN RIGHTS COMMISSION OF PAKISTAN: Very, very often.

SAYAH (voice over): Human rights activist Tahira Abdullah says rape is one of the most common crimes against women in Pakistan. But you won't find accurate statistics, she says, since few victims speak out.

ABDULLAH: It is as if you accept the fact that you have been sexually abused and violated and survived to tell the tale. It brings a shame and a stigma and a dishonor upon the family.

SAYAH: Sana says a female police officer urged her to say something. In a raw moment of honesty she told us why she did what few Pakistani women dare.

SANA (translation on screen): This was my decision. I wanted to kill them. I complained to the judge. He asked me to do in writing and I did it.

FARHANA QUMAR, SANA'S LAWYER: I was really shocked that this such offenses are happening even in my local area.

SAYAH: Sana's lawyer says results of the medical exam show her client was raped. But police waited weeks before investigating their own men. Only two suspects are in custody. Police say three are missing. Their lawyers say they are all innocent.

SARDAR ASAMAL ULLAH, DEFENSE ATTORNEY: So he said that he is innocent, absolutely. And he seems to be innocent, I tell you.

SAYAH: These days Sana spends most of her time inside her two room house. She says taunts and death threats have forced her to drop out of school.

SANA (translation on screen): I get up in the morning, do housework, play with my brothers, and then sleep. That's my life now.

SAYAH: But several times a week she uses the little money she has and travels one hour to attend her court hearings. Rarely do women from poor families win cases in Pakistan against police officers. But Sana isn't backing down.

SANA: I decided to speak out because I thought if they ruined my life, the can do it to some other girl, too. And I will be responsible for that.

SAYAH: And that something Sana says she refuses to live with. Reza Sayah, CNN, Taxilla (ph).

(END VIDEOTAPE)

FOSTER: Well, eight years ago a tribal court in Pakistan ordered the gang rape of Mukhtar Mai (ph), as payback for a crime that her brother allegedly committed. Mia did then what Sana is doing now. She spoke out. She has since emerged as a spokesperson for women's rights in Pakistan. This is from an address at the United Nations.

(BEGIN VIDEO CLIP)

MUKHTAR MAI, WOMEN'S RIGHTS ACTIVIST (through translator): I have a message for the women of the world. Rape happens everywhere, everywhere in the whole world, not just Pakistan. One shouldn't think that I'm Muslim and they are of another religion, or they are Indian, we must think that we have to fight for justice. We have to fight not just for us, but for our next generation.

(END VIDEO CLIP)

FOSTER: Mukhtar Mai made those remarks four years ago now. The sad truth is that women inside and outside Pakistan must deal with rape, still, today. In Toronto we are joined by filmmaker and journalist Sharmeen Obaid-Chinoy.

Thank you so much for joining us. You have worked on this subject. What did you learn from the beginning of that process to the end? What struck you? And what did you take away from this filmmaking experience?

SHARMEEN OBAID-CHINOY, FILMMAKER: The system in Pakistan is stacked against women. Any woman who gets raped, what is her recourse? She goes to the police station. The police most often do not register cases, they take a long time, there are no medical doctors available to run rape kits in Pakistan. So even if a woman was brave enough to go and report rape, nine out of 10 times she wouldn't be able to report it.

On a second step, if she did, by some miracle, get a rape kit done and it came positive and she went to the court, her family would disown her and most-times uneducated families get pressured by the rapist. And most often they are forced to give up cases like this. Until 2006, in Pakistan, a woman needed four male witnesses, who have witnesses a rape even before she went to court. It was only in 2006 that the law was changed, under then President Musharraf. The law now states that a woman can go to court, she doesn't need four male witnesses, but she still needs to prove that she has been raped. Which is very impossible to do in a country like Pakistan.

FOSTER: So the system clearly needs to change. It needs to be easier for women to pursue their claims. But just-give us an insight into the family's mind here. Because it all seems so extraordinary to so many people watching that a family would shun their daughter for being raped.

OBAID-CHINOY: Well, one of the things is that the weakest, the poorest women in Pakistan get raped. The young woman in question, that we've been talking about, in this report was 13 years old. She didn't even belong jail. She is a juvenile. Under Pakistan's penal system, if the penal system worked, she shouldn't even have been taken to jail.

And so you know, one of the things that needs to happen is that families need to counseled and told that rape is a crime that is punishable. A lot of these families, because they are so poor, they get intimidated. And there is a stigma attached to, you know, being a rape victim, in Pakistan. And the whole thing that people use is that, you know, they are in the slum, they can't be raped, how these men be raping women? These women must be making up stories.

And so there is a lot of that that keeps happening. There needs to be a widespread campaign in Pakistan that educates people that rape is very much prevalent in society. In fact, the Independent Human Rights Commission in Pakistan, by some estimates, says that a woman-eight women are raped every single day in Pakistan.

FOSTER: Dealing with it in Pakistani s obviously the priority, but surely there is something people around the world can do as well. Because they are just going to be shocked to hear what you are saying. Because what is so depressing about it is these women just seem helpless. How can people give them help, or offer them help somehow?

OBAID-CHINOY: Well, one of the things that needs to be done is right now in Pakistan there is a democratically elected government. And the international community can pressure this government to set up special cells all across Pakistan, in police stations, where women can have recourse. Where there are female police officers, to register rape. If you look demographically in Pakistan most of the rapes are reported from small towns, from villages, where there are local hospitals, but there are not female doctors. To make those available to women is very, very important. Because of segregation, because it is an Islamic society, most women will not go to male doctors. And most women will not report crimes to male police officers. So that is something that needs to be done.

The second thing that needs to be done, is you know, court cases in Pakistan, the judicial system, there needs to be pressure to refine the system. To a lot of Pakistani women, right now, it is-you know, it is very sad for them to see that the judicial system acts very quickly on cases about, you know, Internet issue, recently Google was banned. And all of these other YouTube, Facebook was banned. But when a woman comes to court and claims rape, it takes years for the system to bring justice.

FOSTER: Filmmaker Sharmeen Obaid-Chinoy, thank you very much indeed for joining us. Give us your insight on that terrible story.

CONNECT THE WORLD continues after the break.

(COMMERCIAL BREAK)

(BEGIN MOVIE CLIP "WALL STREET")

UNIDENTIFIED MALE: The point is, ladies and gentlemen, that greed, for lack of a better word, is good. Greed is right. Greed works.

(END MOVIE CLIP)

FOSTER: Seems a long time ago now, doesn't it. Memorable statement there, from Oliver Stone's 1987 movie, "Wall Street" and one that foreshadowed the banking industry's recent woes. Now the controversial director is tackling the topic once more in the wake of the global economic downturn. With a new film, "Wall Street: Money Never Sleeps".

(BEGIN MOVE CLIP)

UNIDENTIFIED MALE: One gold money clip, with no money in it, and one mobile phone.

(END MOVIE CLIP)

FOSTER: Well, yesterday on the show, my interview with Oliver Stone got pretty heated. I think you'll agree. As your "Connector of the Day" defended his movie depictions of such Latin American leaders as Hugo Chavez, you can check out that on our Web site. Worth looking at, CNN.com/connect.

In the second part of the interview we talked about money, though. I began with a viewer question from Jurgen Brawl, who asked Olive Stone what message he was hoping to get across in his new film, "Wall Street: Money Never Sleeps".

(BEGIN VIDEOTAPE)

OLIVE STONE, FILM DIRECTOR: It is a dramatic film and it has great characters. It is-it is-for me it's fun. I consider it really a comedy of manners, because when you look at Wall Street in 1987 and you look at it now, it is the same old greed that goes on and on. It is like a train out of control. And I think there is a certain humor because it is never going to be solved. The power of bankers to absorb more and more money out of the system, for themselves, is-is, is-is enormous. It is like an oil spill.

So, I don't know that this thing is ever going to be fixed. But it is interesting to meet with all these billionaires and millionaires, and I met quite a few of them, and see the-and understand how the world works, because Wall Street does control a lot of the world and a strong say in what happens in Latin America and these poor countries.

And of course, they are very happy to make more loans to Latin America under the best conditions, to issue bonds under the best conditions for themselves. And then they take out all their credit when they want. They can trash the Argentine economy when they want, they can go after Venezuela if they wanted-they can't though. The Venezuelan economy is holding up. The bonds are holding up.

But the truth lies in Wall Street. It is where the money is. And if you follow the money on Wall Street you'll follow it around the world, you'll see how the world works. The shame is, of course, is that the banks have so much power. It is the same thing with the American Pentagon, or this American Wal-Mart. It is all this supersizing of this concentration of wealth in these companies, in these banks, it is a disaster for the world economy.

The reforms that have been proposed by Washington, especially the Volcker rule, make perfect sense. You've got to divorce banks from making money for themselves. They have to go back to their old function. And that, of course, is going to be-because of the banking lobby is so powerful in Washington, I fear that too, is going to be diluted.

FOSTER: What is your view on how these European countries are cutting all of their spending. And do you agree with the U.S. few that perhaps they shouldn't be doing it now?

STONE: All I can say is that, you know, I do believe that the purpose of capitalism, and my father was a stock broker who wrote about it quite a bit, is the best thing is go for a full employment economy. It is not about concentrating wealth in banks or pharmaceutical companies, or oil companies. It is getting the wealth spread. That is the essence, essential goodness of capitalism. So, if we can get back to employment, and that means the government has to put stimulus out there, and it has to spend, but spend wisely. I'm not sure the bail out was the right move. I really am not. I'm not an expert, but I think that if that money, or most of that money, had not gone to the banks, had gone into the system to give jobs, it would change. I think it would be better for people if they were working. Not reading about money, vast amounts of money that go to banks, that don't get lent out again.

I don't think the situation is solved. I think it is a bubble. I think it is going to go on. There is going to be another bubble soon. I'm worried about it. And you'll see the movie. My "Wall Street" movie has a- I'm not going to say it-it's a-it's a reflective ending, but I would call, it as I say, a comedy of manners. Because I think the bad karma goes on in the system.

FOSTER: I just want to bring in another couple of subjects up. Javier Ballante is asking, "Would you ever consider doing a film about the BP oil spill?"

STONE: Yes, sure. I'd love to do it. But I don't have time. You know I'm doing film. I do feature films on the side, too. You know, like I have "Wall Street" coming out. I'm also working on actually a 10-hour documentary called "The Secret History of the United States", which is taken almost, off and on, almost two years of my life. And I also did a third documentary on Mr. Castro, who you people probably despise. But I've tried to show Castro in winter as an old man, in his 80s and he's mellowed out and looking back on his life. But anyway, that is coming out next year.

FOSTER: I want to ask you about the "Wall Street"-

STONE: So, the BP oil spill. Let's just shoot back here.

Look, I'm not an expert on how to cap the thing-I'm not-but all I'd say, it makes people-it's a symbolic thing. It makes people think right now and look at what the price of corporate control of the society and an economy is. There is so much of the-people are realizing that BP is making enormous profits from offshore drilling. And now they're putting $20 billion into an escrow fund, and (UNINTELLIGIBLE) sitting there and everyone's talking about that. But the truth is these companies are making enormous amounts of money by digging up the resources of each country. Whether it is Bolivia, or Ecuador, or Venezuela, or America, North America, it's the same thing. Should companies, corporations be allowed to take the resources of a country and make these kinds of profits? Huge profits? The largest lobbies in Washington, that control, gridlock the system are oil, banking, pharmaceuticals and AIPAC, which is the Israeli lobby. They are the most effective lobbies.

You have to ask yourself, is it in the interest of the North American society to give corporations this kind of power? This is the essential question here. And the Venezuelans, the Ecuadoreans, the Brazilians, they have decided no. We want our resources back. The people should own the oil.

(END VIDEOTAPE)

FOSTER: There isn't a part for you, I'm afraid. But there is loads more we could have talked about. He's got so many opinions. Tomorrow's "Connector" is married into royalty and into Islam. Having renounced her American citizenship in 1978, Queen Noor of Jordan has spent the last three decades working to promote her adopted nation abroad. She is also the president of the United World Colleges Movement and the fierce advocate of the global zero campaign to eradicate all nuclear weapons. Do you have a question for Queen Noor, send it in. Send it to CNN.com/connect. Remember to tell us where you are writing in from.

Tonight, we'll be right back.

(COMMERCIAL BREAK)

FOSTER: In tonight's "World of Pictures" hundreds of thousands of visitors have descended on South Africa for the World Cup, in case you haven't noticed. And even the smallest ones have turned out in support of their home teams.

Here you can see a young Japan fan, getting ready to watch the match against Paraguay. I feel bad for her now.

This Netherlands fan shows his colors before watching his team beat Slovakia on Monday. Another Netherlands fan put together this outfit complete with enormous spectacles and a vuvuzela, to show her support. Strange outfit.

And finally, this mother is ensuring her little one is a Uruguay fan even before birth a she celebrates the teams win over South Korea on Saturday, everyone truly getting involved. The smallest fans are the biggest spirits in our "World of Pictures" tonight.

From the more controversial side of the sport now, some of those missed calls by referees at the World Cup. The president of FIFA has apologized to two of the teams affected by those calls, England and Mexico. That is generating a huge amount chatter on our Web site.

RIWO is in favor of using technology, writing: "I would welcome tech to uphold my calls. If a video ref can see more than me on the field, so be it."

But VR113 disagrees, writing as long as the game is dynamic and interesting, we'll love it. And "those who can't forget a bad call-get over it and get a life."

Get your voice heard on CNN. Head to our Web site CNN.com/connect.

I'm Max Foster. "BACK STORY" is next. But first we are going to check the headlines for you.

END