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CONNECT THE WORLD

The U.S. Debt Crisis; Debt Deja Vu; Tiger Back in the Game; Fighting in Mogadishu Doesn't Prevent Aid Getting Through; Unity in the Face of Tragedy; Who Killed Libyan Rebel Army Commander? Rift in Libyan Rebel Ranks? Libyan Rape Victim Starts New Life in US; More Answers About Air France Flight 447; Implications for Future Pilot Training; Week on the Web; Parting Shots of Royal Weddings Past and Present

Aired July 29, 2011 - 16:00:00   ET

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


(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The power to solve this is in our hands.

(END VIDEO CLIP)

BECKY ANDERSON, HOST: So get on with it -- the message from the White House to squabbling U.S. lawmakers on Capitol Hill, as America stumbles closer to a potentially catastrophic downgrade on its debt.

Well, a sense of deja vu for the Japan -- how failure to agree on cutting their deficit back in the 90s meant more than a loss to decade of economic growth.

Plus, a final farewell for the children taken too soon -- one week on from Norway's darkest day.

And it plunged into the Atlantic without warning -- could Air France's pilots have prevented disaster?

These stories and more tonight, as we connect the world.

Well, there are plenty of ways out of this mess, but we are almost out of time. U.S. President Barack Obama lighting a fire you need feuding lawmakers, as a debt deadline is now just four days away. Well, the House of Representatives could vote within hours on a Republican plan to raise the debt ceiling and avoid default.

Of course, we said that yesterday, as well, didn't we?

Well, Republican leaders abruptly canceled Thursday's vote to allow more time for arm-twisting. Well, there are trying to get rebellious conservatives in their own party on board.

Well, the Senate Democratic leaders advised, don't waste your time. Harry Reid is pushing a rival plan and says the House bill will never pass the Senate, calling it "a Band-Aid approach."

President Obama, who's also opposed to the House bill, today reminded both parties what's at stake if they can't reach agreement soon.

(BEGIN VIDEO CLIP)

OBAMA: We need to reach a compromise by Tuesday so that our country will have the ability to pay its bills on time, as we always have, bills that includes monthly Social Security checks, veterans benefits and the government contracts we've signed with thousands of businesses.

Keep in mind, if we don't do that, if we don't come to an agreement, we could lose our country's AAA credit rating, not because we didn't have the capacity to pay our bills -- we do -- but because we didn't have a AAA political system to match.

(END VIDEO CLIP)

ANDERSON: Well, President Obama says the two parties are not miles apart on their rival plans, so why can't they close the gap?

Two reports for you now.

Allan Chernoff is at the New York Stock Exchange to tell us how the markets are reacting to all of this uncertainty.

First, though, let's get to Brianna Keilar, who is in Washington.

What's going on this hour?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Becky, here at the White House, all eyes are really on Capitol Hill, as we await, perhaps, I should say, this vote coming up in the House of Representatives. We could see it in a couple of hours or more. Of course, there was supposed to be a vote last night and it was delayed, as the Republican House speaker tried to convince enough Republicans to vote for this, so that it would pass the House of Representatives.

But as you mentioned, this is a bill that the White House is calling dead on arrival, that the White House press secretary, Jay Carney, is calling political theater that this vote is even going down.

And we heard from President Obama this morning, really looking toward the Senate, toward Democrats and Republicans there, because it's even -- it's almost evenly enough divided that there would need to be some Republican support to pass something.

He's looking to the Senate to come up with some sort of compromise, while he's saying and warning that if August 2nd comes and goes without an agreement it's really a self-inflicted wound.

Here's what he said this morning.

(BEGIN VIDEO CLIP)

OBAMA: There are a lot of crises in the world that we can't always predict or avoid -- hurricanes, earthquakes, tornadoes, terrorist attacks. This isn't one of those crises. The power to solve this is in our hands.

(END VIDEO CLIP)

KEILAR: Now, we know that there are back channel discussions going on, Becky. These are being held very close to the vest, especially on the part of the White House. But we do know from a source that Vice President Joe Biden is very involved in this.

But I have to tell you, we're about four days out, a little more than that from this deadline, and still, the end game on how all of this plays out very unclear, even though the White House still says it's confident that Congress will increase the debt ceiling -- Becky.

ANDERSON: Right. The end game then unclear at this point.

Markets don't wait for the end game, though, do they -- Allan?

What's going on there?

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Lots of frustration here on Wall Street. The Dow ended Friday off more than .75 of 1 percent. And for the week, we were off more than 4 percent on the Dow Jones Industrial Average. That's the worst week in over a year.

Frustration with Washington, in fact, grew through the week. In conversations I had with analysts on Wall Street today, they described Congress as inept, misguided, chaotic, paralyzed -- and those are the polite words.

It's not merely concern that the U.S. may default on some of its debt, not merely concern that Standard & Poor's, the rating agency, may take away the country's AAA credit rating.

There is also fear that the gridlock further damages the economy. Analysts warn it will likely force corporations to cut their spending and any hiring plans, if they had them, especially companies reliant on major government contracts.

The Commerce Department here reported today that economic growth during the first half of the year was at a snail's pace, just 1.3 percent during the second quarter and a very sluggish annual rate of only .4 of 1 percent in the first quarter.

So, Becky, the worry is that this debt ceiling debacle puts the economy at a standstill.

ANDERSON: And certainly won't start building any bridges so far as jobs are concerned, of course, as well. It's all about the economy and jobs, stupid, at this point, isn't it?

Allan, thank you for that.

CHERNOFF: Thank you.

ANDERSON: Allan Chernoff is on Wall Street for you.

We've been talking about this AAA rating on U.S. debt. If the U.S. hammers out a debt plan, there are still big concerns that the country could lose that prestigious rating. Take a look at this. Only 17 countries around the world, that's those in yellow, are actually part of the lucky AAA debt club. These are the nations that hold the coveted rating from both Standard & Poor's and Moody's. Those with the stamp of approval, of course, Canada; you can see, the U.K., Sweden and Australia. And at the moment, the U.S. also has the AAA rating.

It lets countries borrow money at a lower cost, of course, because they are considered safer options.

So, if the U.S. loses that rating, it's going to be tough. It's going to be expensive for them. All signs point to a AA rating, something Japan knows all too well. Now, Japan lost its AAA status some 10 years ago. Some economists say there are striking similarities between Japan then and the United States now, warning Washington to learn the lessons of history before it's too late.

Kyung Lah now reporting on debt deja vu.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT (voice-over): The stand-off over the U.S. debt crisis -- a political divide that seems unwilling to close. It's history repeating itself. And Nomura Research Institute's chief economist, Richard Koo, he has a pointed view about the current battle in Washington from living through a similar debate in Japan a decade ago.

RICHARD KOO, NOMURA RESEARCH INSTITUTE: It's an exact replay of what we went through in Japan, 10 or 15 years ago, because I think the U.S. has caught the exact same disease we caught 10 or 15 years ago.

LAH: March 1996, Japanese politicians gridlocked in an ugly and divisive debt over government bailouts. Opposition lawmakers staged sit- ins, blocked the doors of parliament so debate on the bills couldn't happen. Japan's economy was still recovering from its real estate assets bubble bursting, just like the U.S. in the wake of the subprime crisis.

Japan's private sector was minimizing debt, not maximizing profit, because its balance sheets were underwater just like the U.S. today.

Japan's budget deficit skyrocketed. And a year after the bailout, the government turned to what they believed was the real economic problem, the deficit.

(on camera): Do you see this as deja vu?

KOO: Shockingly so. Playing with this default -- this is basically a bluff, right?

I think it's -- it's a really dangerous game to play. As an American citizen who lived through the Japanese experience the last 20 years, this is really sad to see the U.S. making the exact same mistake that Japan made in 1997.

LAH: In 1997, Japan's prime minister reduced government borrowing and raised sales taxes in an effort to cut the deficit. What followed -- six quarters of negative growth and a recession, a continued meltdown in the banking system and a Japanese economy that today still remains in stagnation. Calm heads and sound economic policy, whatever the U.S. decides must rise above the rancor in Washington, warns Koo, or the U.S. could follow in Japan's muddy economic footsteps.

WOO: Yes, Republicans and Democrats are working very hard to reduce the budget deficit. But they're doing it at the worst moment in U.S. history.

LAH (on camera): The big difference between the Japan of the '90s and the U.S. of today is the impact on the rest of the planet. The U.S. is the world's largest economic power. So a default or an overall economic slide spells bad news not just for America, but for the rest of the global economy.

Kyung Lah, CNN, Tokyo.

(END VIDEO TAPE)

ANDERSON: All right, well, our next guest says the United States should, indeed, be learning from Japan's mistakes, calling the situation, quote, "a ticking time bomb."

Seijiro Takeshita is the director of Mizuho International.

And he is here with me in London.

It seems only yesterday that we were talking 17 years ago about what was the lost decade in Japan.

Listen, do you buy these parallels?

SEIJIRO TAKESHITA, DIRECTOR, MIZUHO INTERNATIONAL: Well, I think it's very, very scary, to say the least. I think people are saying -- looking at it as if it's a show. But the consequences of it is very, very grave, from a Japanese point of view.

I mean this Hollywoodization of -- of politics basically brings out a total lack of, I should say, top down decision-making process. What tends to happen is what you saw in Japan in the past 20 years, which is lack of decisiveness in policy-making decisions. Everything comes always too slow and too little.

And, obviously, in Japan, people talk about two lost decades. But we had a lot of chances to revive our economy or at least a structured transition. That could have been done. But it's always been truncated because of a lack of political initiatives.

ANDERSON: Well, we certainly heard from the Chinese. I mean they are absolutely furious about what's going on on Capitol Hill at the moment.

This absence of leadership in the West, "The Economist" writing this week, "frightening" and also rather familiar, as we've just been talking.

Just give me a sense of what you really believe the global impact of all of this could be.

TAKESHITA: Oh, it's far bigger than that of Japan. The reason is the consequences would be -- for example, instantly, to the foreign exchange rate. The Japanese exporters are suffering. Of course, they were already making their transition away from the domestic production base out, but this is going to accelerate it, which obviously would cause a hallowing out of the industries in Japan, which means loss of jobs.

Now, have the policies been strong enough to create a new -- new era of growth, a new multiplier?

The answer is no. So this really leaves Japan in a very, very difficult spot, and, also, the rest of the world, as well.

ANDERSON: You're talking about a strengthening yen against a declining dollar. There are those out there who are saying that the dollar simply isn't the reserve or won't be the reserve currency of choice going forward.

Do you buy that?

TAKESHITA: No, I don't. I think that's totally unrealistic. If you look at the circulatory moves and also the danger that we're seeing in the euro and also, if we look at the yen, I mean, it's pretty obvious, from a liquidity point of view, that that is a very unrealistic statement to make at this point, OK, so.

ANDERSON: Although we are seeing the hedges as investors buy into gold and into the Swiss franc. And those are classic, and we know.

Default on Capitol Hill by August 2nd, Tuesday, next week?

Or are you buying this potential downgrade of debt, which will be a breather?

TAKESHITA: Probably the latter. But it all depends on how the show moves on. Again, it goes back to the problem. They have to focus on the problem, not on the faces or looking at next year's election, because those grave mistakes, those shows have such great consequences in coming years. And I think a lot of people don't really realize that.

ANDERSON: Are you surprised, Seijiro, at the lack of influence this debacle -- let's call it that because it really is -- on Capitol Hill, is - - is having on global financial markets?

I leave the currency market slightly to one side here. I'm not seeing the sort of interest that I thought I might have.

TAKESHITA: That's exactly my point. You see, people take it for granted that this is a show. They know that they're going to come into accord, maybe a day or two default. But it's going to close down very, very quickly.

The same thing happened in Japan, as well. They knew -- everybody knew it was a show, so they didn't think of it as serious.

But during that time, what happened was it truncated the capability of the top down decision-making process. Everyone went to consensus type of wishy-washy manager type of decision-making process, which only looks at populism. You cannot make a turnaround decision under that kind of circumstance. And that is a grave mistake that I would not want the West to continue or to copy from that of Japan.

ANDERSON: Seijiro, always a pleasure.

Thank you very much, indeed, for joining us on the significant parallels tonight.

Well, our top story -- a call for compromise, as the U.S. moves ever closer to a potentially catastrophic default. It was surely a sign of the times that President Obama delivered his message today not only from the White House, but also via Twitter.

He reminded Americans of their power to help break the stalemate, writing: "The time for putting party first is over. If you want to see a bipartisan compromise, let Congress know."

You're with CONNECT THE WORLD.

I'm Becky Anderson.

It's 15 minutes past 9:00 in London.

Still to come, how food aid is getting to the starving in Mogadishu in spite of intense fighting there with -- in Somalia's capital in less than five minutes time for you.

Then, Tiger, Tiger, he's not exactly burning bright. A big slide in the world rankings, Tiger Woods gears up for another comeback. Our sports chat in about 10 minutes from now.

And Norway says good-bye -- as the death toll rises, a somber memorial pays tribute to the victims of last Friday's massacre. We're going to get you to Oslo in about 15 minutes time.

You're watching CNN.

(COMMERCIAL BREAK)

ANDERSON: I'm Becky Anderson in London.

You're watching CONNECT THE WORLD.

Seventeen minutes past 9:00 in London.

There's been a wholesale house cleaning of the military brass in Turkey. All of the four top commanders have quit. They are including the head of Turkey's armed forces, as well as the chiefs of the ground forces, navy and air force.

Now, the departures stem from disagreements with the government over the fate of senior officers charged with plotting the overthrow of the government.

Well, the government wants active duty officers who are defendants to retire. The military says they are not proven guilty so they should not be forced to leave.

Islamic groups joined thousands of other demonstrators today in Cairo's Tahrir Square. They are demanding quicker reforms there. The Muslim Brotherhood called for the rally in Egypt's capital to be a show of unity during what's become a sensitive transition from the regime of ousted President Hosni Mubarak.

Many protesters called for an Islamic state.

Polish investigators say pilot error was mostly responsible for the plane crash that killed the country's prime minister last year. He and about 100 others died when their plane went down in Russia's Smolensk region. The report said the flight crew were not trained properly, but also that ground controllers gave them incorrect information.

Well, an earlier Russian report also singled out the pilots and said they should have flown to another airport because of poor weather at the time.

Well, four suspects wanted for the killing of Lebanon's prime minister, Rafik Hariri, have been named. A U.N.-backed tribunal says they are Salim Ayyash, Mustafa Badreddine, Hussein Oneissi and Assad Sabra. A source says they all belong to the militant group, Hezbollah.

Well, the former prime minister, Hariri, was killed in a bomb blast in 2005, along with 22 other victims, as his motorcade passed through Central Beirut.

Well, the world is going to pass an important milestone this year. A researcher at Harvard University says the population will soon cross seven billion people. Demography professor, David Bloom, says most of the growth will be in underdeveloped country and it will be a response -- or irresponsible not to tackle tough issues such as contraception, child survival and retirement reform.

But even though seven billion might sound like an enormous number, there is plenty of room for all of us. The "National Geographic" estimates that standing shoulder to shoulder, the entire world's population could fit into the city of Los Angeles.

Twenty minutes past 9:00.

A lot more to come here on CONNECT THE WORLD with me, Becky Anderson, in London.

In eight minutes, we're going to get you live to Libya, as thousands gather in Benghazi for the funeral of the top rebel commander. We'll look at the mystery that shrouds the assassination on Thursday.

Thursday, new challenges loom for Tiger Woods and we are not just talking his aching knees. Don Riddell joins me with the sports headlines, after this.

(COMMERCIAL BREAK)

ANDERSON: All right, Tiger Woods is out of the world's top 20 for the first time since, get this, 1997. And he is facing more challenges than knee and tendon injuries. Now, a former number one says that he will return to golf next week, as he endures his biggest one day drop -- or one week drop, sorry -- in the world rankings.

Woods is gearing up to the play the World Golf Championship in Ohio, his first event since mid-May. He hasn't won a tournament in more than a year-and-a-half.

So Woods will be hoping he can end that draught in next week's event.

My colleague, Don Riddell, joins me here in the studio.

It seems remarkable. You remember the days when he -- you know, he would just win everything.

DON RIDDELL, CNN SPORTS CORRESPONDENT: Absolutely.

ANDERSON: Do you remember that?

RIDDELL: Yes.

ANDERSON: There was nobody else in it for...

RIDDELL: I don't...

ANDERSON: -- anybody else in those days.

RIDDELL: I remember doing a piece a few years ago when the stock markets were crashing all around the world, because he was winning every tournament going. You -- you would just say, you know, you could put your money on him with the bookies and that was almost a better investment than a home -- than betting on the stock market.

ANDERSON: It's remarkable.

RIDDELL: How things have changed, haven't they?

ANDERSON: Um-hmm.

RIDDELL: There is quite a bit of excitement that Tiger, because, of course, he does remain one of the greatest golfers the world has ever seen. He's won 14 major titles. He's coming back in time to play in the final major of the year, which is the following week, the PGA Championship in Atlanta.

But is he going to do it again this week?

I mean that's an awful lot to ask. He hasn't played for 11 weeks and he's coming back with a new caddy, of. No Steve Williams. He's going to have Brian Bell on the back, though. That is, we understand, his best friend and also his business partner. They have worked together a few times in the past, but it's going to be interesting to see him come check.

ANDERSON: Well, he'll certainly be -- he'll certainly be watched.

All right, the man called Jurgen Klinsmann...

RIDDELL: Yes?

ANDERSON: -- who was formerly bimute (ph) -- am I all right in saying that as a -- as a manager?

RIDDELL: I thought you would have said spurs first, Becky.

Did you forget he used to play for your team?

(LAUGHTER)

ANDERSON: What on earth is he doing stateside?

RIDDELL: Well, yes, this is it, the announcement today that Jurgen Klinsmann will be the new couch of the U.S. International Team.

ANDERSON: Yes, the team (INAUDIBLE). I'll have to remember that.

RIDDELL: That's right. Last night, I teased you with the fact that Bob Bradley had been fired. Today, they've announced that Jurgen will be the new coach.

Now, he knows an awful lot about the U.S. soccer scene, and, actually, they wanted him when they hired Bradley five years ago. But the problem then was that he wanted to have much more control with the team than they were prepared to give him.

Now, it sounds as though they're prepared to let him have it his way.

ANDERSON: Right.

RIDDELL: But he knows an awful lot about U.S. soccer. He's married to an American. He lives in California. And I think it's seen as quite an exciting appointment. And, as you know, Klinsmann has done it all. I mean we've prepared some -- some figures here just to remind you of what Jurgen Klinsmann achieved.

As a player, he really did it all. He won the World Cup with Germany. In Italia 90, he scored three goals there en route to Germany, winning that title. And then he was still on the team six years later when they won Euro 96. Klinsmann played and scored in three different European championships and three World Cups.

Then, as a coach, when Germany were hosting the World Cup in 2006, he led his country to the semi-finals. They lost to eventual winners, Italy.

And then he had less than a year as coach of Bayern Munich, you know, you're right there, Becky. And that ended on a bit of a sour note, because he was relieved of his duties with a few games to go before the end of the season because of a difference of opinion with the club's directors. And he hasn't been coaching since. He hasn't been seen in the game since so.

ANDERSON: Yes, I'm looking forward to seeing him. I think it's -- it's good news for the States.

RIDDELL: I think so.

ANDERSON: It's good news for the team.

All right, we've got...

RIDDELL: Yes.

ANDERSON: -- sports headlines coming up.

RIDDELL: In other news, Sergio Aguero could make his debut for Manchester City in the Dublin Super Cup this weekend, having just completed a $65 million transfer from Atletico Madrid.

Aguero trained with his new teammates today and says that he's got a lot to offer.

(BEGIN VIDEO CLIP)

SERGIO AGUERO, NEW MANCHESTER CITY FORWARD: I don't think I'll have too many problems settling into the team. I'll obviously be doing my best to do what the manager asks and try and work the way he wants me to. And, of course, he will know how he wants to use me. Once I'm out on the field, I will get to know my way around.

But I can't say that for sure, because I have not even made my debut yet. I'm sure everything will be fine. I'm going to be relaxed about it.

(END VIDEO CLIP)

RIDDELL: Meanwhile, Lewis Hamilton seems to have the bit between his teeth, having won a thrilling German Grand Prix last weekend. The McLaren S1 driver was the fastest in both of today's pre-qual sessions, ahead of the Hungarian Grand Prix. His teammate, Jenson Button, who is preparing for his 200th Grand Prix race, (INAUDIBLE) today just behind Ferrari's Fernando Alonso, who was celebrating his 30th birthday, by the way.

The runaway championship leader, Tabisia Vetter (ph) was fifth there. He was half a second off the pace.

Well, of course, the massive news of the day is Jurgen Klinsmann taking the USA coaching job. We'll have lots more on that in "WORLD SPORT" in just over an hour's time. Join us for that.

ANDERSON: Excellent.

Thank you, Don.

RIDDELL: You're welcome.

ANDERSON: Well, stay with us on CONNECT THE WORLD this hour.

Of course, up next, how one victim of the Norway massacre has inspired unity in the face of tragedy.

That and you're news headlines follow this short break.

Stay with us.

(COMMERCIAL BREAK)

ANDERSON: You're back with CONNECT THE WORLD here on CNN, the world's news leader.

I'm Becky Anderson in London.

Let's get you a check of the headlines this hour.

And U.S. President Barack Obama is urging divided lawmakers to compromise and hammer out a deal to end the debt crisis. The House of Representatives could vote soon on a Republican proposal, but it then faces certain defeat in the upper house.

All of Turkey's top four military commanders have resigned. These resignations come as the trial continues of officers accused of trying to overthrow the government. Now, the government wants active duty officers who are defendants in the case to retire. The military says they haven't been proven guilty, so they should not be forced to leave.

Polish investigators say pilot error was mostly responsible for the plane crash last year in Russia that killed the prime minister there. The report said the flight crew were not trained properly, but also that ground controllers gave them incorrect information.

Well, to war-torn Mogadishu now, where the worst fighting in days isn't, thankfully, keeping food aid from getting through to the starving of Somalia.

(COMMERCIAL BREAK)

ANDERSON: You're back with CONNECT THE WORLD here on CNN, the world's news leader. I'm Becky Anderson in London. Let's get you a check of the headlines this hour.

US president Barack Obama is urging divided lawmakers to compromise and hammer out a deal to end the debt crisis. The House of Representatives could vote soon on a Republican proposal, but it then faces certain defeat in the upper house.

All of Turkey's top four military commanders have resigned. These resignations come as a trial continues of officers accused of trying to overthrow the government. Now, the government wants active duty officers who are defendants in the case to retire. The military says they haven't been proven guilty, so they should not be forced to leave.

Polish investigators say pilots error was mostly responsible for the plane crash last year in Russia that killed the prime minister there. The report said the flight crew were not trained properly, but also that ground controllers gave them incorrect information.

Well, to war-torn Mogadishu, now, where the worst fighting in days isn't, thankfully, keeping food aid from getting through to the starving of Somalia.

My colleague Nima Elbagir is on the ground with the Africa Union's peacekeeping forces, and she joins me now. Just describe how things are on the ground, Nima.

NIMA ELBAGIR, CNN CORRESPONDENT: Well, Becky, more and more displaced people continue to flood into Mogadishu. They're trying to get out of the militant-held areas in south and central Somalia where, for now, aid agencies are unable to reach. The Shabaab militants had said they would allow aid in, and then they rescinded on that promise.

The WFB has told us they're scaling up operations, trying to reach some of the 150,000 displaced currently in the capital, but all this is going on, as you said, there are continuing clashes. We're coming into Ramadan, historically when the Shabaab ramp up their activities.

African news sources have told me that three weeks ago, the Shabaab received a new shipment of weaponry across the Red Sea, they believe, from Yemen.

So, their concern is that these clashes are going to continue to intensify, and they're worried that some of these displaced people might people might be scared enough to head back into those militant-held areas, Becky.

ANDERSON: Nima Elbagir on the ground, there, for you in Mogadishu.

As Norwegians commemorated a week since the tragic bomb and shooting attacks, police again have revised the death toll. They say 77 people died. That is one more than previously reported, but police have cautioned it still may not be the final number.

A week after Anders Breivik went on his deadly rampage, the first funerals were held today for some of those victims. The nation presented a unified front in mourning, a defiant response to Breivik's crusade against multiculturalism. CNN's Nic Robertson was there.

(BEGIN VIDEOTAPE)

(BELL RINGING)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Hugs. Tears. Flowers. As a sad farewell begins, 18-year-old Bano Rashid, shot dead by Anders Breivik as she attended a politic summer camp on the nearby island of Utoya.

An aspiring politician of Kurdish-Iraqi descent, only weeks ago, Rashid published a thesis on democracy.

SIVAR JADGAR, FRIEND OF BANO RASHID'S FAMILY: She was a beautiful girl, lots of ambition. I think she will -- she's going to be a symbol for the Kurdish youth in Norway, as well as the Muslim youth.

She had big ambitions in the Labour Party. She would have -- I think she would have gone to the Storting, it's the parliament in Norway.

ROBERTSON: Hundreds came to mourn at the first-ever joint Muslim- Christian service, more than this tiny church could handle.

Across community, outpouring of grief that is Norway's answer for Breivik's hatred of multiculturalism.

JONAS GAHR STORE, NORWEGIAN FOREIGN MINISTER: That image of the imam and the priest walking side by side, it's a very powerful message that we don't want what he had to offer, and we have quite a different alternative.

ROBERTSON (on camera): Bano Rashid's funeral is just the beginning. Across the country in the coming weeks, there will be dozens more such somber services as the more than 70 victims of Breivik's murderous rampage are laid to rest.

ROBERTSON (voice-over): Amidst the national calamity, these last moments with their daughter, a struggle for Bano's parents to find meaning. A family bereft of a daughter, of a dream, of a hope, of an aspiration, say a final good-bye.

Nic Robertson, CNN, Nesodden, Norway.

(END VIDEOTAPE)

ANDERSON: Norway, a week on.

Still to come, who killed Libya's rebel army commander, and was it an inside job? We speak to the interim government's representative to the United States here on CNN. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

(MOB SHOUTING)

(END VIDEO CLIP)

ANDERSON: Thousands filled Benghazi's main square on Friday to mourn Abdul Fatah Younes, the leader of the Libyan rebel army. He was shot dead on Thursday in mysterious circumstances. Mourners at his funeral chanted that he was a martyr for the rebel cause.

Before defecting to the rebels in February, Younes was a key figure in Colonel Gadhafi's inner circle, serving as his interior minister for a period of time.

Now, questions are now being asked about whether his old ties to Gadhafi are the reason for his killing. Let's get an update for you from Ivan Watson, who's joining us from Tripoli with more. Ivan?

IVAN WATSON, CNN CORRESPONDENT: Well, the big question here, who killed Abdul Fatah Younes? Where did it happen? What were the circumstances?

And depending on what the answer to that question is, this could have immense consequences on this conflict, on this civil war that is now going into its sixth month, Becky.

And some of the mystery here is because the head of the rebel Transitional National Council, when he initially made his statement, announcement, about 24 hours ago that General Younes had been killed, he also went on to say that they were still looking for the general's body.

A lot of questions unanswered in that initial statement. Moments after he made it, some of General Younes's supporters showed up in Benghazi outside the hotel where the press announcement was made and began opening fire and even accusing the head of the rebel council of having some role in the killing of their leader.

Now, why is this such a big deal? Because it suggests it could lead to bigger schisms within the rebel council. That could be a big boon to Colonel Gadhafi's forces, who have been grinding on in a conflict on three fronts against the rebels. Becky?

ANDERSON: Ivan's on the ground for you in Tripoli, tonight. Ivan, thank you for that.

So, was General Younes's assassination a signal of a widening rift in rebel ranks? We can get the inside word, now, from a representative of Libya's interim government.

Ali Suleiman Aujali is Libya's former ambassador to the United States, but he's now on the side of the National Transitional Council, which has now been recognized by many countries around the world as the legitimate government in Libya.

Sir, what do you understand to have happened?

ALI SULEIMAN AUJALI, US REPRESENTATIVE, LIBYAN TRANSITIONAL NATIONAL COUNCIL: Well, what I understand that General Younes was killed --

ANDERSON: By whom?

AUJALI: -- he was assassinated by some militant, which really, I don't know much about them. And -- but the things I'm very sure of, that there is no conspiracy behind that. We don't know --

(CROSSTALK)

ANDERSON: That's interesting, can I just stop you there, sir? Let me just stop you there for one second. You say "by some militant." I'm not quite sure and all our viewers be sure what you mean by "some militant" as opposed to a rebel, somebody who's fighting against Gadhafi? Who are you talking about here?

AUJALI: Well, that -- until now, I believe nobody can confirm exactly what happened to Mr. Abdul Fatah Younes after he'd been called. Who was behind that?

But to what we are sure of, that either some of Gadhafi's infiltration to the -- force designated to Benghazi, that he used his money and his some loyal to interrupt what's going on in Libya for the last few days after the shooting has been done --

(CROSSTALK)

ANDERSON: Yes, that would be more convenient. That would be more convenient for the Transitional Council, let's face it, wouldn't it, than if he'd been assassinated by somebody within his own ranks?

Certainly there is narrative which suggests that there is a rift amongst the ranks of the rebels. How do you respond to that, if at all?

AUJALI: Well, I don't think so, it will come to that point. Of course there are different views between the officers of high-ranking and the national army of the plan to get rid of the regime of Gadhafi.

But the difference of views, this is kind of democracy, which we're supposed to practice since February this year.

And what's happening? It's a really great loss, of course. Abdul Fatah Younes, he resigned from Gadhafi's government the same day I did, the 21st of February, and he's been doing very well, very well.

We do understand that there are differences between some officers, yes. But that doesn't mean that will -- the assassination is the result of that --

(CROSSTALK)

ANDERSON: Right, OK --

AUJALI: I think this is just a stupid action if it has happened from inside the eastern part, from the one who is really accountable of the revolution.

But if it has happened from Gadhafi's regime, which I believe that's what's really happening, because the media of Gadhafi, for the last few weeks, they've been talking about Gadhafi -- about Abdul Fatah Younes assassination.

ANDERSON: All right, OK --

AUJALI: If it was the media of Gadhafi that has been saying this for the last few weeks.

ANDERSON: You've made your point, let's move on.

The Transitional Council, the rebels' cease-fire is effectively over, so far as they are concerned. That was last week. There's a stalemate so far as who is winning or winning out in this war.

NATO continues to drop its bombs, the Europeans are beginning -- or certainly the West is beginning to suggest that, listen. As long as Gadhafi stands down at this point, he can stay in the country.

There was a sense that NATO members are looking to the endgame here. What's going on? Are you on the up or not at this point?

AUJALI: Well, to me, there is only one option and one solution. There is no peaceful negotiation or political solution with Gadhafi. To me, it's Gadhafi must leave the country and must leave power.

Without Gadhafi's presence, Libyan people, they will never enjoy anything. No reform, no democracy, no freedom --

(CROSSTALK)

ANDERSON: But you haven't got the support of even William Hague at this point. He says, now, the British Foreign Minister now says, listen, if he has to stay in the country, he has to stay in the country. He's not any longer calling for Gadhafi to leave the country as he was with Hillary Clinton about two or three months ago.

AUJALI: Well, I think I do respect what Mr. Hague said, but this is his own view, and he's expressing the view from his point of view.

But for the Libyans, to me, any compromise with Gadhafi or his family to stay in Libya, that all of these people have been killed and sacrificed for the freedom to -- and for the democracy to come to this country, that will be really in vain.

We are not fighting just to -- at the end, we come and sit to Gadhafi and tell him, "OK, you can have a place to sit in Libya." This man you cannot -- we cannot endure anything with him.

Gadhafi, put him in the desert, you give him a cell phone, you give him a big card of $15, he will make trouble for you, believe me that.

ANDERSON: What --

AUJALI: Gadhafi is not the man who will enjoy his retirement on a nice house in front of the beaches and he can read and he can walk around. This is not this kind of people who can do that.

ANDERSON: What happens on Monday? It's the start of Ramadan, of course.

AUJALI: Of course, Ramadan is coming, and there is no cease-fire for me. Cease-fire with Gadhafi, that means giving him more time to get more munition, he'll get more weapons, and he'll get more mercenaries. This is a problem. Gadhafi we should not give him any rest at all until he's out.

ANDERSON: With that, we're going to leave it there, sir. We do very much appreciate you joining us here on CONNECT THE WORLD this evening. We'll speak to you again. Libyan ambassador there in the US.

Well, the Libyan woman who became the face of the struggle against Colonel Gadhafi's regime is starting a new life in the United States.

Eman al-Obeidi touched down in New York on Friday. She came to international attention, remember, in March, alleging she'd been gang raped by members of Gadhafi's security forces.

Well, she fled the country and, after seeking refuge at a UN facility in Romania, she has now been granted asylum in America.

Forty-four minutes past 9:00 in London this Friday evening. You're with CONNECT THE WORLD, I'm Becky Anderson. Still to come, shedding new light on what has long been an aviation mystery. Air France offers more answers about doomed flight 447. Stay with us.

(COMMERCIAL BREAK)

ANDERSON: Air France is defending the pilots of its doomed flight 447, 228 people were killed when the plane plunged into the Atlantic in June 2009 on its way from Brazil to France.

Now, despite the carrier's vigorous defense, a new report and more than two years of evidence gathering are raising new questions about pilot training. Now, my colleague Jim Bittermann has been listening to investigators in Paris. He filed this report, take a listen.

(BEGIN VIDEOTAPE)

JIM BITTERMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: This latest report from the French accident investigator seems to clearly level responsibility for the crash on the pilots involved in Flight Air France 447, basically saying among other things that they didn't have sufficient training to handle the kind of situation they found themselves in.

However, pilots' unions here and others in the aviation industry say it's too early to assign blame, that basically the pilots were confronted with an extremely rare situation, a complex situation, they were getting conflicting information from their instruments, and they had only their instruments to rely on.

As well as the pilots' associations, also the victims associations say that it's too early and too easy to blame people who are no longer around to defend themselves.

ROBERT SOULAS, HEAD OF FRENCH VICTIMS ASSOCIATION: I think it's too early to blame the pilot because first of all, we have to understand the technical situation of the plane, what happened exactly, what problems the pilots were facing, and no answer, no clear answer has been brought to us to explain the technical -- an accurate technical situation.

BITTERMANN: The head of the accident investigating team says that, in fact, their mission is not to assign blame. That's something that's up to the courts to decide.

JEAN-PAUL TROADEC, DIRECTOR, BEA: We are in the safety investigation. The purpose of the safety investigation is to make safety recommendations in order to improve aviation safety. We are not at all focused on the question of blame. We don't -- it's not part of our vocabulary. It's a technical investigation.

UNIDENTIFIED FEMALE: What responsibility, in that case?

TROADEC: No, no, no. Neither responsibility. Responsibility and culpability are the worlds of the judicial investigation, they are not the worlds of the safety investigation. The safety investigation is focused on the measures to improve safety.

BITTERMANN: This third in the series of reports on Flight 447 is, in fact, not the last. There'll be a final report sometime early in 2012.

Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

ANDERSON: Meantime, the competence of the Air France crew is still a bone of contention and, sadly, we'll never know exactly what happened in the cockpit, of course, because the pilots are dead.

My colleague Richard Quest joins me now with more on the implications for the industry. Is this about time that we reviewed the way that pilots are trained?

RICHARD QUEST, CNN CORRESPONDENT: Yes. And that's what this is coming to the conclusion of. And if you take it in turn with other accidents that have happened, Turkish Air and Amsterdam Coughlin Air in Boston, a whole variety of other mishaps and accidents.

And what's coming to a conclusion is that pilots are trained to monitor systems. Certainly in this particular case, they were in the cruise at flight level 35,000, the pilots are trained to keep in touch with ground control, radar control, they're monitoring the systems all the time and deciding what to do when the machine tells them something's going wrong.

What the report says is that they need to learn and there needs to be more training for manual flying. At 35,000 feet, at maximum speed, learning to fly the plane.

ANDERSON: How do they go about getting that extra knowledge, because one would have assumed, Richard, that a pilot should have everything he needs --

QUEST: They do.

ANDERSON: -- and I'm not putting this right, but you know what I mean? It seems quite remarkable.

QUEST: They learn how to fly, and they learn how to fly well. And as they go up through their checks and they become type-rated on different aircraft, they learn to fly that aircraft, and they learn to fly it well.

And then, every six months, they have a sim check, a simulator check. Now, in that sim check, certain things are practiced regularly, frequently. For example, loss of an engine power up V1 and rotate as the plane is taking off.

But as any -- as the experts -- safety experts tell me, that's a very rare event. So you don't need to practice it as frequently or a fire or this. Instead, they need to, perhaps, focus on practicing some of these other things, like high-altitude stall. That's what this was. High- altitude stall.

Look, we will never know -- we know what happened in that cockpit on 447. We know right to the last detail what happened. What we don't know and never will know is why. Why did the pilot flying do certain things that seemingly doomed the plane?

ANDERSON: Those who are watching tonight who say -- and we've had this conversation before, but given the report out today, can those who are watching today who've had concerns in the past that this could happen again to them on a flight, should we feel more relaxed about flying today?

QUEST: You should certainly feel more relaxed about the aircraft around you. What this report shows quite clearly is that the aircraft performed -- with one exception, the pilot tubes, which got stuck with ice. But that was a serious matter, but not a catastrophic one.

But what this report show is the aircraft performed exactly as it should have done. But of course, what comes into the equation? The human factor. The pilots. They were at the controls.

And that's why these recommendations are very different to those I've seen before. They're going to the fundamentals of training of pilots and what they need to learn how to do in emergency situations at high altitude.

ANDERSON: Fascinating. As ever, thank you.

QUEST: My pleasure.

ANDERSON: Friday evening. You can go.

QUEST: Thank you.

ANDERSON: We've got about six minutes left of the show. It's Friday, so it is time for you to get everything you might have missed that has gone viral this week from dancing twin toddlers to baby hippos to Fabio's new TV role, I've been told. Here's Phil Han with the week that was on the web.

(BEGIN VIDEOTAPE)

PHIL HAN, CNN DIGITAL PRODUCER: Welcome to another edition of Week on the Web. This is the place where we want to bring you up to date with all the latest in social media news over the past seven days.

First up, though, the US debt crisis is making headlines around the world, and some have turned this serious subject into a silly one. Here's one music parody by rapper Remy.

REMY, RAP ARTIST (singing): The debt ceiling, raise the debt ceiling, raise the debt ceiling, raise the debt ceiling.

Fourteen trillion in debt --

HAN (voice-over): Speaking of money, take a look at this prank from YouTube, which is getting a lot of hits.

UNIDENTIFIED FEMALE: What's wrong with that dollar?

HAN: Now, this online prankster doesn't only dabble in floating money gags, he uploaded this video earlier this week, and it involves another drive-through.

UNIDENTIFIED MALE: Oh, God!

HAN: The prankster tricks workers into thinking that their burger is on fire, definitely putting a new meaning on fast food.

UNIDENTIFIED MALE: Oh, God! Oh!

HAN: That video has about 72,000 hits.

(MUSIC - "HEY YA," OUTKAST)

Now, one of the most popular videos this week with over two million clicks is this pair of dancing toddlers.

(MUSIC - "HEY YA," OUTKAST)

(TODDLERS SINGING "HEY YA")

HAN: The twins' dance to "Hey Ya" by Outkast on the Microsoft Wii gaming system.

ISAIAH MUSTAFA, OLD SPICE: He could smell like he's me. Look down.

HAN: Some of us may remember this guy, the Old Spice man became an internet sensation for this ad.

MUSTAFA: It's an oyster with two tickets to that thing you love. Look again. The tickets are now diamonds.

HAN: That video has over 34 million hits.

MUSTAFA: Old Spice is not a lady. I'm on a horse.

FABIO, OLD SPICE: Blah blah blah. Look back, minus the horse. Old Spice product wash.

HAN: Well, now there's a new contender for the new Old Spice man, and his name is Fabio.

FABIO: Fabio give you pearls all the time, blow wind. (whispering) Fabio.

HAN: Fabio is trying to take the crown of the Old Spice man in an internet duel and is asking people all around the world to log on and vote for him.

HAN (on camera): Mariah Carey has been in the headlines for a lot of different reasons, but this next one is just plain weird.

HAN (voice-over): Take a look at how people are reacting to her appearance on the Home Shopping Network.

MARIAH CAREY, HOME SHOPPING NETWORK: Sorry, they're telling me to look into a particular camera to see the people. Wait, which one is that?

HAN: Mariah was trying to sell her line of bags and jewelry, but it was her behavior that was causing an online sensation.

UNIDENTIFIED MALE: Sequins!

CAREY: Take the camera off me, please, and I know you guys hear me. OK, I see it on me.

HAN: This is your introduction to Adhama. The five-month-old hippo calf from the San Diego Zoo is getting a lot of attention online for this video of her underwater moves.

(MUSIC - "RAIN OVER ME," PITBULL)

HAN: And finally, the number one video of the week, this is Pitbull's "Rain Over Me" with 17 million clicks.

I'm Phil Han, CNN, London.

(END VIDEOTAPE)

ANDERSON: Yes, he is. Our Parting Shots this Friday, they've got more than a touch of royalty about them. For starters, it was on this day in 1981 that more than a billion people tuned in to watch this event. Remember it?

If their marriage had lasted, today would have been Prince Charles and Princess Diana's 30th wedding anniversary.

Well, their son William has a long way to go to reach that milestone, but he and his bride do celebrate their three-month anniversary today, which brings us to another royal wedding taking place this weekend, although you may not even be aware of it.

The queen's eldest granddaughter and cousin, of course, of William, Zara Phillips, is set to marry her rugby-playing boyfriend Mike Tindall on Saturday in Edinburgh in Scotland.

In stark contrast to the other royal wedding this year, Buckingham Palace is calling this one a private family affair and they are not releasing any details. I'm not sure who that man is, actually, on the roof.

Anyway, here's what we do know. The festivities kick off with a cocktail party on a former royal yacht tonight. The wedding ceremony will take place at the church on the grounds of Edinburgh Castle, and the reception will be at Holyrood House, the queen's official residence in Scotland.

As you can see here in their official engagement photo, the couple are pretty well-known to be casual and fairly low-key, but as soon as we get a glimpse of the bride and groom in their finery tomorrow, we will bring it to you.

I'm Becky Anderson, that's your world connected this evening. Thank you for watching. World news headlines, "BACKSTORY," up after this. Stay with us.

(COMMERCIAL BREAK)

END