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NEWS STREAM

China Selects New Leaders; Radical Cleric Wins Fight Against Deportation from U.K.; Who Knew About Petraeus's Affair?

Aired November 12, 2012 - 08:00:00   ET

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


KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout in Hong Kong and welcome to NEWS STREAM, where news and technology meet.

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STOUT (voice-over): Now as China's Communist Party selects the people who will run the country for the next 10 years, we'll look at how Chinese people view the transition of power.

A radical cleric accused of funding terrorists has won a fight against deportation from the U.K.

And more questions on who knew what about the affair that led to the resignation of CIA Director David Petraeus.

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STOUT: China's once-in-a-decade leadership transition is underway. And right now, delegates at the Communist Party's national congress are in the process of picking the central committee. That is the group that will select the powerful politburo standing committee later in the week.

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STOUT (voice-over): Most of the proceedings take place behind closed doors. Few people are privy to what goes on. Remember, in this country of 1.3 billion people, only 6 percent of the population are party members. Still, that's around 83 million people. An even smaller group actually attends the party congress. This year, it's 2,270 delegates. They elect the Communist Party central committee.

This is an elite group. There are 204 full members and 167 alternate members. The central committee selects the next level of leadership, the politburo. The size of this senior group can vary; but right now, there are 25 members and nine of them make up the standing committee of the politburo. They meet as often as once a week to make major decision for the nation.

And this is the most powerful group. Now all but two of the current members are stepping down. They are the presumptive president, Xi Jinping, and the premier-in-waiting Li Keqiang. It is believed that the standing committee will shrink from nine members back down to seven, meaning just five spots are up for grabs.

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STOUT: One of the most pressing issues for China's new leaders will be the nation's widening wealth gap. And Stan Grant introduces us to one struggling family in Beijing.

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STAN GRANT, CNN CORRESPONDENT (voice-over): This is a little piece of home for China's army of migrant workers. They gather here to dance on street corners. They've come to the cities searching for a better life. For some, China's booming economy has been music to their ears. For others the tune has turned more somber.

Life in a rundown neighborhood so close to the riches of the new China, that they could reach out and touch it -- almost.

GUO JIGANG, MIGRANT WORKER (through translator): We came to work in the city, isn't this the trend?

GRANT (voice-over): Guo Jigang and his wife, Ge Yaru, have followed the China dream to Beijing. This is where it has got them. They live in a tiny, one-room house with their baby son. There is a room for a bed, barely anything else, and for them it isn't cheap.

GUO (through translator): Back in 2009, when we first came to Beijing, the house rent was a bit more than about 15 dollars a month. Now it is five times that.

GRANT (voice-over): Inflation has hit the poor hard.

GE YARU, MIGRANT WIFE (through translator): Prices are high. Our daily expense is high. It is the same back in hometown. Everything is expensive. It's not easy to save money.

GRANT (voice-over): Like anyone, Ge Yaru dreams of a better life, a bigger house, hopes for her son.

GE (through translator): Who doesn't want a bigger house? But you have to work hard -- he has to work hard. I don't have any income, just stay home and take care of the baby.

GRANT: For more than two decades the China miracle has lifted hundreds of millions of people out of poverty. Migrant workers have flocked to communities just like this on the edge of big cities, looking for a better life. The fear now, though, is that those days may be coming to an end. The economy is slowing; the gap between rich and poor is getting wider.

GRANT (voice-over): Analysts here say the poor in China increasingly find the doors to success are being slammed shut. Even those who've lived the dream are waking up to a new reality: higher bills, longer working hours, more stress.

China's happiness meter has been measured by America's National Academy of Sciences. Six surveys since 1990 have found that money does not bring contentment.

And here, people like Guo Jigang and his family find the value of simple things, like family. They are expecting a second child -- more hardship, more expense. They will need to find more than a thousand dollars just to pay for the fine for breaching China's one child policy.

But to them this is a necessary burden.

GE (through translator): When people get old in the city they can just be sent to the old people's home, whereas if we grow old we can only rely on our children. We don't have any pension, we don't have any hope or anything. All of that we put it on the shoulders of our children. So if there aren't enough kids, and something goes wrong, we are also done for.

GRANT (voice-over): Their dreams are small and their values are in life, simple.

GUO (through translator): I hope that we would be in our home, having a store open. The child would be in school, and I would be out working, help build some houses for my families. During our lifetime, I guess we won't have any high hopes. Really any hopes are for the children.

GRANT (voice-over): China's economy is slowing. For a new Communist Party leadership, the concern is what will happen if the music stops -- Stan Grant, CNN, Beijing.

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STOUT: Let's get some more perspective now from the Chinese capital.

Lijia Zhang joins us from CNN Beijing. She is a social commentator and author. She joins us now.

Lijia, good to see you. And just tell you what do people there in China make of what's been happening this week, the party congress and this leadership change that's underway?

LIJIA ZHANG, AUTHOR: Well, I have to tell you that many only (ph) people don't feel so excited or joyful about what's happening. The people tell, you know, say, oh, it's party business, (inaudible) disaster and the way to not have a say in selecting leader or the policy.

I think that shows frustration this, we don't have -- we don't have the right to elect our leaders (inaudible) the time elect U.S. presidential election happened on the same time, highlighting such frustration.

STOUT: So people are -- in China are frustrated during this time of leadership transition. Do they want more accountability and is that more important than more prosperity in China?

ZHANG: I think -- I think the (inaudible) ordinary people are here, for example, are living migrant neighborhood area. They certainly hope that is (inaudible) easier for them to find jobs, you know, for their children to go to school.

And the -- I think they certainly hope that life is getting better. But I do not think many people expressed dramatic changes to take place, even though I think China does social and economic (inaudible) really, of China has reached a critical point. (Inaudible) 10 years ago when Hu Jintao first took reign, I think now the need for change is more urgent.

But on the other hand, I think general reform always takes courage whether the new leadership made by Xi Jinping or that he'll conduct reform, whether he will be able to press ahead, (inaudible) possibly and, you know, (inaudible) some of the more -- his more conduct (inaudible) the people, whether he will conduct -- introduce reforms, which may hurt the interests of these families and friends, this remain to be seen.

STOUT: And what does communism mean in today's China, especially as people across the nation tune into CCTV and watch these carefully orchestrated events, as literally the old guard of the party are due to change and this leadership transition is underway? How much relevancy does communism have among Chinese today?

ZHANG: I think that the -- I think many people just kind of accept it, that, you know, in China, we Chinese people never had the right to vote. And I still think they know there's no alternative.

But we -- I think the party also aware that they need to make themselves be more likable, more popular (inaudible) they try to (inaudible) for example, (inaudible) the interparty democracy, part of the pace of the change and probably not as fast and many people want to see (inaudible).

For example, the current, the economic slowdown, one of the reasons possible is the (inaudible) bottleneck, the (inaudible) of the (inaudible) of the state is too much, you know, the (inaudible) still controlling all the industry.

I think, you know, the monopoly is enemy of the market. So we need to really kind of -- China really is desperately, urgently needs reform. But whether will that happen, we're waiting to see.

STOUT: There is this desperate need for reform, and the party really is up against a wall. It no longer controls the narrative with so much information coming out through microblogs, et cetera. So how much longer can this go on, this China and the party go through the motions with each party congress, talking about corruption, talking about issues but not really offering true accountability to fight it?

ZHANG: I think it's interesting. I think that compared to -- again, 10 years ago, I think that the Internet is now playing more important role for people to express their opinion, and also fighting against corruption, for example, just two months ago, there was a party official from Jiangsu (ph) province, and the people, they know he (inaudible) disaster thing.

And people -- and he was wearing a very expensive watch. So people researched and found he had more watches and he was brought down. So Internet has become a very important force for people to express a view and also (inaudible) against corruption. (Inaudible) that's a very interesting -- very interesting dynamic there.

STOUT: And when you read the comments online or talk to your own friends and family, what is the thinking about the next general secretary of the Communist Party, Xi Jinping?

ZHANG: I think, from what I can see, he's different in the sense that he's not engineer (ph). He has law degree and also (inaudible), even though he is the son of a high-ranking leader, Xi Zhongxun. And during the Cultural Revolution, he was actually sent down in the countryside. He walked (inaudible) with the farmers.

So we hope that that will make him more, you know, experienced, will help him to relate to the hardship, the needs of ordinary people. So I think he sounds very impressive man, but, again, for the first time, that's, you know, whether he will be (inaudible) by (inaudible) we are not entirely sure, because you know, Hu Jintao is still around and Hu Jintao's predecessor, Jiang Zemin, is still around. So that remains to be seen.

STOUT: Yes, that's right; how much power will be shared at the top? Lijia Zhang, always fascinating to have you on board. Thank you for sharing with us your views and the views of people across China about the 18th party congress and the next leader of the party, thank you.

Now the secretary general of Amnesty International tells CNN that China's leadership change brings with it a major opportunity to improve human rights. The group acknowledges that there has been reform in a few areas, but says a lack of transparency and accountability by the government is fueling discontent.

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SALIL SHETTY, SECRETARY GENERAL, AMNESTY INTERNATIONAL: From Amnesty International's perspective, the new leadership that is coming in provides a really great opportunity for us to reset some of China's perspectives on human rights, both domestically but also in terms of their foreign policy and their international relations.

I should start by saying that achievements of China in the last few decades in terms of pulling millions of people out of poverty is something which we have to acknowledge and recognize. And they also made some important progress on changing laws. For example, some of the labor laws and the laws on women's rights, et cetera, are actually quite impressive.

But the fact of the matter is that these changes have come at great cost as well. So massive increase in inequality and minorities in regions which are excluded have suffered a great deal. And then we know that some of the progress or infrastructure, it has come at great cost to ordinary people.

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STOUT: Positive changes at great cost. Now as Amnesty International Salil Shetty there.

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STOUT (voice-over): Now he also penned this opinion piece, saying, quote, "If China is to continue to build on its achievements in the 21st century, basic rights must be observed and enforced."

And don't forget: you can find complete coverage on China at CNN.com/China.

Coming up right here on NEWS STREAM, we have the latest on the extramarital affair that prompted CIA Director David Petraeus to resign.

And radical cleric Abu Qatada wins an appeal against deportation from Britain.

And in tech news, (inaudible) HTC settles its patent dispute with Apple.

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STOUT: Welcome back. Now Muslim cleric Abu Qatada has won his appeal against extradition to Jordan. British judges sided with Abu Qatada, questioning the testimony that could be used against him in Jordanian courts. Abu Qatada is accused of funding terrorist groups. He's also said to have inspired one of the 9/11 hijackers.

The British home secretary says it strongly disagrees with the ruling and plans to appeal.

Let's bring in senior international correspondent, Nic Robertson, now from London

And, Nic, first, why did Abu Qatada win his appeal against extradition? What was the legal argument?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, what the commission has said is that they are not sure, despite assurances given to the British home secretary, Theresa May, by Jordanian officials, they are not sure if Abu Qatada is returned to Jordan, if a -- if testimony given allegedly or perhaps under pressure of torture by certain witnesses at previous trials for Abu Qatada in Jordan, trials in the late '90s, early 2000s, if that -- if those testimonies will be completely ignored.

The Jordanians are promised a retrial for Abu Qatada. But what the commission has said is they're not sure the way the justice system works in Jordan right now, if those earlier testimonies that were perhaps given under the duress of torture would be, in some ways, influential. So it really rests on that, despite the fact that they do agree that the Jordanians have given these assurances of a retrial.

STOUT: Now the U.K. did manage to deport another radical preacher. I'm talking about Abu Hamza. He was extradited to the U.S. in October to face terror charges there. Could there be an appeal for Abu Qatada and could he very well meet the same fate as Abu Hamza?

ROBERTSON: It's certainly still on the cards. Theresa May says that they're going to the British government, will appeal this and they do see - - appear to have every intention of doing that. The king of Jordan has said that he will help to British government in extraditing Abu Qatada to Jordan.

So I expect -- one can expect that there will be further conversations between Theresa May's department and the relevant departments in Jordan to try and move this further forward. But the British government is very much determined to do this.

One of the reasons it's determined to do it, it is concerned about having Abu Qatada in the British jail systems. There are concerns that radical clerics like him are radicalizing Britain's Muslim prison population. And there's -- and this is one of the propelling reasons, if you will, why the British government would like to see him back in his home country, Kristie.

STOUT: And we are still waiting for a statement from Theresa May, the British home secretary.

Nic Robertson, reporting live for us from CNN London, thank you very much indeed, Nic.

Now it is one of the most respected names in broadcasting. But now two scandals have left the leadership of the BBC in chaos. It all started in December of last year, when the BBC pulled a program linking the late children's presenter, Jimmy Savile, to allegations of pedophilia.

The decision prompted outrage after a formal criminal investigation was later launched against Savile following a documentary that aired on rival network ITV. And then on November the 2nd, a report on the BBC's flagship current affairs program "Newsnight" wrongly implicated a former senior political officials in a child sex abuse scandal.

And that led to the resignation of director general George Entwistle over the weekend. And today, the director of news, Helen Boaden, shown here on the right, is stepping aside pending an internal review into the network's handling of the Savile scandal. And as is her deputy, who is not pictured there.

Now you are watching NEWS STREAM. And still ahead, America's spy chief resigns. U.S. lawmakers want to know why they were not told sooner about the FBI investigation into his extramarital affair. You're live at the Pentagon with the latest.

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STOUT: Coming to you live from Hong Kong, you're back watching NEWS STREAM. And there is new fallout over the extramarital affair that cost United States' spy chief his job.

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STOUT (voice-over): Top U.S. lawmakers want to know why they were not told sooner about the FBI investigation that uncovered David Petraeus was having an affair.

The retired four-star general resigned as CIA director on Friday. That is the same day the U.S. House and Senate Intelligence Committees were informed about the probe, which had apparently been going on for months. The White House was told just two days earlier on Wednesday the day after President Obama's reelection.

Senator Dianne Feinstein, the chair of the Senate Intelligence Committee, says the revelation the FBI was investigating Petraeus was like "a lightning bolt."

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CNN Pentagon correspondent Barbara Starr joins me now.

Barbara, the big question, why were U.S. lawmakers not told about the investigation sooner?

BARBARA STARR, CNN REPORTER: Well, that is the question. That's what they want to know, because under U.S. law, the House and Senate Intelligence Committees, Kristie, are supposed to be notified of any major development involving the intelligence community or U.S. national security.

By all accounts, national security was not threatened here. There doesn't appear at this point to be any indication of that. This appears to be a private matter of David Petraeus' behavior, his personal behavior. But this is not going to satisfy Congress at this point. Now this has become more than that. It's about why didn't the FBI notify them.

STOUT: And as you call it a personal matter, why was David Petraeus, why did he feel compelled to resign? Why resign from his post? I mean, he could have -- he could have continued with the job and sort of ridden through the storm, as it were.

STARR: Well, I don't know that we know the answer to it. Once it was going to come out, knowing Petraeus as I do, I suspect this was something that was, in part, a personal decision to try and shield his family, I believe, from public embarrassment over all of this.

But you know, Petraeus always, always the four-star general. And he would have wanted to do what he perceived as the honorable thing, and that would have meant retiring. Whether he really wanted to at the end of the day, it doesn't matter.

The issue rapidly became trust in his judgment as CIA director, how could he have exercised such poor judgment and put the president at risk of public embarrassment? Once you have such poor public judgment, there's really no choice but you have to go.

STOUT: You mentioned knowing David Petraeus as I do, I'm assuming you know him personally. What is he going through now? How is he dealing with the personal and professional crisis that this is?

STARR: Well, you know, I have covered him as a reporter for many years, as have so many journalists around Washington. He has said publicly, you know, his rules of the road are everyone makes mistakes; you admit it. You move on.

I suspect pretty strongly that his agony at the moment is over what the result of this is with his wife of 38 years and with his two grown children. I think this is probably a very deeply personal and painful episode for him.

STOUT: He was the head of the CIA for some 14 months. What impact did he make on the agency during this time?

STARR: Well, you know, that wasn't very long, as you point out. He came as a newly retired general, retiring from 37 years or so of military service, just days before he came to the CIA. So there was always that transition period. Highly respected, a very public figure, of course, but he had his detractors.

There was a lot of people around who thought that maybe he was a bit grabbing of publicity, that he liked being in the public eye too much.

So when he became CIA director, he basically withdrew, became much more private, much more out of the public eye, but still privately talking to reporters, talking to people all over the world about what's -- what was going on on a day-to-day basis. A very competent leader, but did he really make a mark on the CIA in 14 months? I don't think we know that yet.

STOUT: Barbara Starr, joining us live from the Pentagon, many thanks indeed for that.

This is NEWS STREAM. And when we come back, Syrian war planes bomb a strategic border town as the opposition unites in an umbrella group. And we'll go live to Beirut for the very latest. Stick around.

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STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching NEWS STREAM, and these are your world headlines.

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STOUT (voice-over): U.S. lawmakers want to know why they were not told sooner about the FBI investigation that uncovered David Petraeus' extramarital affair. Petraeus resigned on Friday as CIA director. And that is the same day that House and Senate Intelligence Committees were informed about the probe that had apparently been going on for months.

British broadcaster The BBC says its director of news and her deputy are stepping aside for now after its journalism management came in for severe criticism. The move comes less than two days after BBC boss George Entwistle resigned. He had been at the job for less than two months and stepped down after the network's "Newsnight" program falsely implicated a former political figure in a child abuse scandal.

Radical cleric Abu Qatada has won an appeal against deportation from the U.K. to Jordan. The British home office says it strongly disagrees with the court decision and will challenge the ruling. Among other things, Abu Qatada is accused of raising money for terror groups. He denies the allegations.

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STOUT: The unrest in Syria continues to spread beyond its borders. Reuters news agency reports that the Israeli military has fired into Syria for the second time in two days. And let's go now straight to Sara Sidner in Jerusalem.

And Sara, I'm hearing reports of more rocket fire, another volley of rockets. What can you tell us? What's happening there?

SARA SIDNER, CNN CORRESPONDENT: Well, you know, from the military, that this is the second time that the Israeli military has fired into Syria after receiving mortars from Syria that have landed in the Golan Heights.

This is actually the fifth incident that has come out of Syria and affected the Golan Heights, whether it be the demilitarized zone or actually all the way into the Golan Heights and some of the areas there. Apparently this mortar today got very close to a military post in the Golan Heights. They responded and they ended up hitting something inside of Syria.

We do know that just a week ago, the last Saturday -- not this Saturday, but the past Saturday -- that three tanks from Syria were seen inside the demilitarized zone between Syria and Israel. That zone, no one is supposed to be inside there; none of the military has any access. But they were there. And but they had their tanks shooting towards Syria and not towards Israel.

And time and again, I had a talk with the Israeli president and he basically said, look, we see this not as Syria attacking Israel but as the war in Syria spilling over into Israel, spilling over into the Golan Heights and into the demilitarized zone.

We do not expect to see an escalation from Israel's side unless they believe they are being attacked by Syria. At this point, they do not; they believe it's the civil war in Syria simply spilling over into yet another country.

STOUT: All right. Sara Sidner reporting, thank you very much indeed for that update, Sara.

Now our next report, it's by CNN's Arwa Damon, and it shows graphic video of atrocities allegedly conducted by both sides in Syria's civil war. And a warning, some viewers may find it disturbing.

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ARWA DAMON, CNN CORRESPONDENT (voice-over): This is video from Homs shot earlier this year. Rebel fighters crawl through holes they smashed in walls and find an entire family killed by regime forces, they say.

A woman's body lies on the floor. In the room next to it, bodies crowded into a corner, the slaughtered pile base a mask of fear. More dead are in the bathroom.

A small voice whimpers from another room, a child comes into view, crawling over a body. He's the only survivor.

The Assad regime has always maintained it is simply targeting foreign- backed terrorists seeking to overthrow the government. But there are a horrifying stream of daily videos, none of which can be independently confirmed by CNN, alleging to show atrocities carried out by regime forces that the opposition claims show no mercy, not even to those already dead.

Here are what appear to be Assad fighters dragging a man's body up into a truck.

And in this video, corpses are used for target practice -- images like these the norm in Syria.

And now a growing number of videos, alleging to show similar war crimes carried out by rebel fighters. This video is said to have been shot in the town of Ablin (ph) in Idlib province. One clip is especially disturbing. What appear to be rebel fighters curse as they fire. The man, unarmed, is gunned down.

In the next clip, a detainee is walked past the body.

This is said to be from the town of Saraqeb. The men on the ground, allegedly Assad fighters, cry out. Their plea is met with a volley of gunfire.

Defected Judge Tal al-Hussan (ph), head of the Free Syrian Judicial Council, blames these actions on the ruthless tactics of the government.

"These are isolated incidents, carried out by individual revolutionaries. The regime tactics are what created this radicalism," he tells us from his base in Turkey. "A person who has had their entire home destroyed with their family inside, has had their entire family killed, will naturally become radicalized."

While the council has set up makeshift courts in some rebel-controlled parts of the country, Hussan (ph) admits that they can't control or monitor every single person.

"So," he says, "this is not a reflection of the revolution. Our revolution is about justice, equality and rule of law."

Scenes are sadly too often among the many casualties of war, especially one as brutal as Syria's.

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STOUT: Some disturbing video there. And as Arwa reports, she says it's the norm in Syria.

Now for more on the violence and the opposition's new united front, I'm joined now live by CNN's Arwa Damon in Beirut.

And, Arwa, as we watch your report, I can't help but wonder about the new opposition group that's been formed. Now there's a lot of hope for unity finally. But what about controlling and monitoring what happens in the battlefield?

DAMON: Well, Kristie, the formation of this new coalition is very much being viewed as, yes, a positive but still very much an initial step.

This coalition still needs to prove itself, prove itself to the Syrian people, who most certainly are welcoming its formation, but also prove that it is going to be able to demonstrate some sort of control on the Syrian battlefield, that it is going to be able to ensure that there is a certain level of accountability and also when it comes to other nations, watching what is happening, the things like funding and weapons are, in fact, if and when they do arrive, going to reach the hands of those who need them the most, of those --

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STOUT: OK. Unfortunately, we lost Arwa Damon there, joining us on the line there. Our apologies for that technical disruption.

Now let's take you to our next story, that of an earthquake, a strong earthquake that shook Myanmar. This took place over the weekend on Sunday. And the aid agency Save the Children says at least 13 people were killed and 40 injured as buildings there crumbled.

Shopping districts in the second biggest city there in Myanmar, Mandalay, are closed today. Buildings are being inspected for damage from this earthquake, this magnitude 6.8 quake.

Time now for a check of the global weather forecast and today we have Tom Sater standing by. Let's go to him now.

Tom?

TOM SATER, AMS METEOROLOGIST: Hi, Kristie. Just to reiterate on the quake, this is right on the plates of the India plate, the Eurasia plate, right on the fault line. We've had numerous aftershocks, as high as 5.8.

Now the center, about 117 kilometers from Mandalay, which is, you know, second largest city. But the structures of what, you know, is the problem and the material used. In fact, for the most part, we've had ancient pagodas to the north that were damaged.

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SATER (voice-over): Take a look at this bridge. This is where four workers were working on this, quite a large -- the construction area. And you can see just how wide the river is, and there are safety boats and crews that are down there and were searching for some of the missing.

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SATER: But again, a number of aftershocks occurred for those in a search and rescue crews. I want to show you the area of concern, because rainfall has been making its way northward. However, it is stunted in its northern progression. So I do think at least another 36 hours of dry conditions as they continue to inspect many buildings, the schools, as you had mentioned, Kristie.

Now elsewhere, let's talk about -- look at this -- China. I mean, a lot of sunshine, 22 degrees currently in Hong Kong, absolutely great stretch of weather. We do have some much colder air to the north of us. And you can see in the temperature trend how it's really starting to plunge across the Korean Peninsula. They had one batch of rain in Japan; they've got another one on the way.

But at least temperatures remain on the mild side. On the weather maps, here's the front. That was the shower activity in Japan. We've had some snow, parts of northeast China and further to the north. But what we're going to find -- and this is -- this is going to be a big snowmaker. It will provide some rain. I really don't believe we're going to have any minor flash flooding with this.

In fact, even the futurecast, if you look closely, some of the rainfall occurred, may have an isolated thundershower, but even some maybe higher elevation snows. But it definitely will be bringing in the cooler air. There's no doubt about that. And the winds will be picking up as well.

Hong Kong 26, Beijing 7. It gets much cooler to the north on Tuesday. Mumbai 33, the warm still in some areas. Singapore, they're getting it to Diwali. In fact, many areas, such as Singapore and Malaysia into India, 5- day celebration of lights, festival of lights. Here's what we're watching now. It's in Italy and they've been picking up a lot of rainfall.

If you go back to 1872 and talk about the flooding in Venice and the aqua alta, the mass of flooding here has only happened at this magnitude six times.

So, again, another round of thunderstorms that will take them into the morning hours before quiet weather persists and we'll start to see the waters recede in Venice and San Marco Square, great news there, high of 9 in Vienna today, 8 in Kiev, Bucharest 9 and temperatures even rebound a degree or two in parts of Paris and into London.

We'll be much -- be back in just a few minutes. Kristie will have much more as NEWS STREAM continues after this. Stay with us.

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STOUT: Welcome back. Now the LA Lakers surprised many by firing their coach after just five games. And now they've surprised everyone again with his replacement. Here's Amanda Davies with more.

Amanda?

AMANDA DAVIES, CNN CORRESPONDENT: Well, the Los Angeles Lakers announced (inaudible) of Mike D'Antoni as their new coach on Monday morning. The Lakers were widely expected to replace Mike Brown with former coach Phil Jackson. While in charge of the Lakers, Jackson won five of his record 11 NBA titles.

But after failing to reach an agreement with Jackson, the Lakers moved to former Phoenix Suns and New York Knicks coach D'Antoni. A news conference is expected later this week, but D'Antoni won't take charge of the Lakers right away. He's recovering from knee surgery. We'll bring you any updates, of course, as soon as we get them here at CNN.

But Roberto Di Matteo was left (inaudible) missed opportunities after his side won a draw against Liverpool. And (inaudible) John Terry is left waiting for the results of a scan on his knee after limping away from Stamford Bridge on crutches. It was Terry's first game back after serving his four-game suspension for racially abusing Anton Ferdinand. And he put his side ahead after just 20 minutes.

But the comeback was brought to an end with a nasty-looking knee injury. And in the 72nd minute, Jamie Carragher flicked the ball on for Luis Suarez to equalize for Brendan Rogers' side. Terry is undergoing a scan on that knee on Monday, suffering what's feared to be serious ligament damage. He was pictured limping home on crutches with his knee in a brace.

Well, Chelsea currently lies third in the Premier League table at 3 points behind leaders Manchester United after 11 games and just a point behind the defending champions, Manchester City.

They kept up their unbeaten record, but had to come from behind to do it. Spurs took the lead through Steven Corcoran (ph) 21 minutes and it took until past the hour mark for Sergio Aguero to pull level for Roberto Mancini's side. But as he's done so many times already, the season Bosnia's Edin Dzeko came off the bench as a sub and popped up to rescue the points three minutes from time.

In fact, the fifth time he's come off the bench this season and scored. So this is how the Premier League table looks, Manchester United leading the way after their comeback win over Aston Villa. Chelsea now 3 points behind United after dropping points, City into second.

Incredible story out to Spain, Lionel Messi's record breaking run continues. The Argentine scored two goals for Barcelona on Sunday to surpass Calais' career record number of goals for a year. He bagged his 75th and 76th goals of 2012 on Sunday night.

So he's now just 9 short of Gerd Muller's all-time record from 1972. Messi had scored his 76 goals in just 59 appearances for both Barca and Argentina with 64 of them coming for his club.

His two goals on Sunday helped Barca to a 4-2 win over Real Majorca. He's currently La Liga's top scorer with 15 goals in 11 matches this season. And with nine goals left for Barca in 2012, two internationals for Argentina as well. He wouldn't put that Gerd Muller record past him. That is just one match left in the men's tennis season and it's got all the hallmarks of a great one.

The world number one, Novak Djokovic, goes head-to-head against world number two and defending champion Roger Federer in the final of the season, ending World Tour finals. Djokovic (inaudible) victory over Juan Martin del Potro, although the Argentine didn't let (inaudible) have it all his own way and took the first set six games to four.

Djokovic is unbeaten this week in London and showed his strength to fight his way back into the match in the second set with some great play. He took it in the end, six games to three and (inaudible) decider an early break in the third really gave the world number one momentum.

Here he was, wrong footing the 6'6" del Potro to go 2-1 up. And he wasn't going to stop there. The 25-year old booking his place in the final at the season climax for the first time since the event's (inaudible) in London 4-6, 6-3, 6-2, it's finished.

(Inaudible) Roger Federer suddenly in Djokovic's way in Monday's final after (inaudible) brushed aside Britain's Andy Murray in straight sets. The first set did go to a tie-break. (Inaudible) Federer proving too strong for Murray in front of this home crowd.

Federer, of course, beat Murray in the Wimbledon finals to break British hearts, but Murray put some semblance of revenge to playing gold in the Olympic finals. But Federer was just making it look too easy in the second set on Sunday, showing his prowess on the indoor hard court. Murray just had no answer. So Federer won through 7-6, 6-2 (inaudible) won't be hanging his head for too long.

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DAVIES: OK. That's it from me for now.

Kristie, back to you.

STOUT: All right. Amanda Davies there, thank you.

Coming up right here on NEWS STREAM, rolling in the deep. It's a museum where you need to get your scuba gear on to enjoy what's on offer.

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STOUT: Welcome back. Now Apple and HTC have settled their long- running legal battle. It began when Apple accused HTC of infringing 20 of their patents back in 2010. It was one of the first major battles in what's been called the patent wars, as major electronics companies accuse their rival of infringing patents and they try to win royalties or get competing products banned from sale.

HTC eventually countersued Apple and the fight expanded to other countries. A British court threw out some of Apple's patents. Apple got two HTC phones briefly banned from the sale in the U.S. And now the two companies have signed a 10-year agreement to cross-license patents.

The deal is confidential, so we have no idea what the terms are. But it's worth nothing that this is not the first time HTC has signed an agreement with a rival. Back in 2010, HTC agreed to a deal with Microsoft. Microsoft licenses their patents to HTC and in return HTC pays Microsoft a royalty.

Now you will have to put on your scuba gear if you want to visit a one-of-a-kind museum. It is underwater; it's off the coast of Cancun, Mexico. And Nick Parker reports the museum is not just a labor of love for its creator. It's also helping preserve Mexico's treasured coral reefs.

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NICK PARKER, CNN CORRESPONDENT (voice-over): Welcome to an underwater world of mysterious figures, frozen in time.

This unique museum off the coast of Cancun has nearly 500 sculptures sunken in up to 10 meters of water. A growing tourist attraction, it's also a vital frontline in conservation as it diverts divers from Mexico's fragile coral reefs.

It's a labor of love for British artist Jason de Caires Taylor, who began the project in 2009.

JASON DE CAIRES TAYLOR, UNDERWATER MUSEUM SCULPTOR: I was a diver and I've been diving around the world in various places. So I had this vision that I always wanted to create this underwater sort of seascape. And I was also looking into the conservation element of it, that it could be used to create an artificial reef.

Started off like a pilot project in Grenada. Again, we started off quite small. And we just did a few pieces. And slowly it grew.

PARKER (voice-over): The project, called The Eye of Cancun's Marine Park officials, who were trying to restore the region's reefs damaged by 2005's Hurricane Wilma.

UNIDENTIFIED MALE: And we thought that by implementing this project we'll become an icon for Cancun.

PARKER (voice-over): For his models, Taylor looked to the area around his studio, including local boatmen. Joaquin Sutta (ph) was the inspiration for "Man on Fire," one of the most iconic works.

JOAQUIN SUTTA (PH), MODEL: (Inaudible), you know. We're very happy about it, yes, but I don't have any (inaudible) in the area.

PARKER (voice-over): Taylor has staggered the deployment of the statues over a few years, so there's some that look cleaner than others, the visual evidence of nature gradually taking over (inaudible) silent evolution.

(Inaudible) the statues are made from a pH neutral material to attract fish and coral, and the cement is high-grade to withstand strong currents. (Inaudible) the museum is an obvious boon to business.

ROBERT DIAZ, AQUAWORLD: (Inaudible) popular, incredibly. We estimate that (inaudible) the 100 percent of this -- of the park, it's about 750,000 people every year. And we get into the museum 40 percent.

UNIDENTIFIED MALE: The world's coral reefs are placing extreme pressures (inaudible) from all sides. (Inaudible) with water quality and global warming, you know, are some of the biggest problems. This project, obviously, can't combat that. But what it can help to do is raise some awareness about the state of our reefs are and (inaudible) attention to the underwater seas.

PARKER (voice-over): Taylor's statues may just be the beginning. Marine park officials say they have a permit for up to 10,000 sculptures with the aim of drawing enough tourists to be able to close the reef for a time. Right now, the project lacks funding, so it's an open question how much the underwater landscape will continue to evolve -- Nick Parker, CNN, Cancun, Mexico.

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STOUT: Looks more like a lost world than a museum. Incredible.

That is NEWS STREAM. But the news continues at CNN. "WORLD BUSINESS TODAY" is next.

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