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Syrian Opposition Fail To Reach Consensus Ahead Of Peace Talks; Second Suspect's Identity Revealed In Lee Rigby's Murder; Indiana Pacers Even Series With Miami Heat; Pentagon Accuses China Of Stealing Weapon Systems Plans; Hurricane Threatens Mexico; Melinda Gates Looks To Expand Contraceptives Access For Women

Aired May 29, 2013 - 08:00:00   ET

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


JIM CLANCY, HOST: I'm Jim Clancy at CNN Center. Welcome to News Stream where news and technology meet.

The U.S. traditionally has had an advantage over China when it comes to military hardware, but a new report is accusing Beijing of hacking its way closer to the top.

A second chance at life for this newborn found wedged in a sewer pipe as many question the actions of his mother.

And Melinda Gates telling CNN why she wants to empower 120 million more women around the world through access to family planning.

It is undeniably one of the top challenges in U.S.-China relations. We're talking about cyber security. The White House calls it a key concern. It says the subject will come up when President Barack Obama meets Chinese President Xi Jinping next week. It's already been brought up during discussions between Mr. Xi and U.S. national security adviser Top Donilon. He visit to Beijing came as a new report is claiming China has gained access to U.S. military secrets through cyber espionage.

Let's get more on this from Brian Todd.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): They're America's most advanced combat weapons and defense system, the F-18 fighter jet, the Littoral combat ship, the Aegis ballistic missile defense system.

According to a new report, the designs for these and other high-tech weapons have been breached by Chinese hackers. A confidential version of the report from the Defense Science Board made up of government and civilian experts was given to "The Washington Post." The report doesn't accuse China of stealing entire designs, but if they didn't steal them, how did they compromise them?

We spoke with Kevin Mandia, a top cyber-security expert who did a separate report this year on Chinese military hackers.

KEVIN MANDIA, CEO, MANDIANT: And bits and pieces of things will be taken from many different sources, different laptops, different computer systems that have been compromised. But it is hard to take a lot of these pieces and gel them into one comprehensive picture of what might be being built or what the designs are.

TODD: CNN couldn't independently verify the latest report's findings. Several members of the Defense Science Board who we contacted declined to speak to us. U.S. defense and other officials downplay the report, saying some of the information is dated, that they have taken steps to address the concerns, one saying -- quote -- "The idea that somehow whoever the intruders were got the keys to the weapons kingdom is a stretch."

But the Pentagon has recently accused China trying to extract information from U.S. government computers, including military ones. If the Chinese even got into parts of a combat or missile defense system, how could they have gotten past the safeguards?

MANDIA: There's a lot of engineering that gets done in an academic setting. There's a lot of engineering that gets done in at defense industrial base. And a lot of these places have been compromised for over 10 years.

TODD (on camera): China's military ambition has have been off the charts in recent years. They have launched a satellite killer missile into space. Just over the past two years, they have deployed their first aircraft carrier, and they have test-flown their first stealth fighter jet. One expert told me the technology for that was taken from the U.S.

(voice-over): And China's alleged hacking could be deadly for U.S. forces on the battlefield. I asked one expert about the publicly released part of this latest report on the consequences of the cyber- snatching of weapons technology.

JAMES LEWIS, CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES: If you mess with the software, the airplane won't fly, the missile will miss its target, and the ship might not get to where it was intended to go.

TODD: China's embassy in Washington did not respond to our calls and email about this latest report. China's government has repeatedly insisted it does not conduct cyber espionage on U.S. agencies or companies.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

CLANCY: Now both Beijing and Washington previously expressed the need for them to work together to address cyber attacks. Of course, the U.S. and China are not the only countries worried about online espionage. A recent report in Australia alleges that Chinese hackers stole blueprints for the main spy agency's new headquarters.

But allegations such as these are not limited to military or intelligence targets, one U.S. based group says hacking is a huge hit to businesses. That report says cyber attacks cost the U.S. economy more than $300 billion a year. And claims China is responsible for about 70 percent of them.

Since February, several U.S. companies have reported suspected hacking attacks following a report linking a prolific hacking group to this high rise in Shanghai used by the Chinese military.

Now the American cyber security firm Mandiant said the group mainly was targeting blue chip companies based in the United States.

Let's get a little bit more on this from Beijing. Our David McKenzie standing by there. And David, almost famously, you visited that site and really got the impression of how much security is there, how sensitive a site it is.

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, put it this way, Jim. That site -- and let's take a look at some of the video -- is certainly a military installation of some point. We drove up to that point. Quickly we were noticed by military and were chased down by the military officials and questioned.

Now that doesn't mean it's necessarily the center of a hacking syndicate. That's the allegation put forward by that security firm Mandiant.

The Chinese government has a simple answer to this, saying it's not us, Jim. They say they've got nothing to do with any hacking. They say hacking is a problem across the globe and coming from all sides, even pointing out that thousands of Chinese computers are hacked probably every single day, or at least attempted to be hacked.

So there's definitely a difference of opinion here between the Chinese and the Americans and others. Some security experts say that the level of evidence, though, on both cyber espionage and stealing of trade secrets is such that there aren't too many places for Chinese officials to hide at this point -- Jim.

CLANCY: Now David, when we look at this, what are the security experts saying in terms of -- what is the goal here? Is it to steal trade secrets? You're talking about military plans for advanced fighter jets or war ships, weapon systems. What is it?

MCKENZIE: Well, let's put it in two broad categories. There's cyber espionage which could be about stealing military secrets and that could happen all across the globe with sophisticated intelligence services. Then, there's stealing trade secrets.

Now, experts I've spoken to here in Beijing have said, well, that could be the difference here in China. They suspect -- now nothing proven exactly yet -- that state companies here in China, giant state corporations, might be trying to get some of those details from particularly American private companies to help them get a competitive edge. That is where, really, I think the U.S. is particularly angered not just in this area of military hacking, but also in the field of trying to get a competitive edge against a trading partner.

I think that is one of the key topics that will probably be discussed between President Xi Jinping and President Obama when they meet late next week in California. It's really become one of the thorny issues in this crucially important relationship between China and the United States.

CLANCY: David McKenzie, many thanks to you, live with us there from Beijing.

Well, ahead on News Stream, one of the two main suspects in last week's killing of a British soldier out of the hospital now. Police continue to question him. We'll tell you what we know so far.

Meantime, police in China investigating how this newborn baby ended up in a sewer pipe, the shocking story that's provoking reaction not only across China, but around the world.

And News Stream's very own Kristie Lu Stout in Kuala Lumpur at the Women Deliver 2013 conference. She just met with Melinda Gates. And we're going to bring you their discussion on access to family planning.

(COMMERCIAL BREAK)

CLANCY: It has been one week since the brutal killing of a UK serviceman sent shivers through London and much of the world. We can now identify the second main suspect in that attack on soldier Lee Rigby. A family friend tells us he's 22-year-old Michael Adebowale. You'll remember that police shot him as well as the other suspect right at the scene.

Adebowale has been discharged now from the hospital and police are searching his flat in London. He remains in police custody, of course, and he's undergoing questioning.

As for the other main suspect, Michael Adebolajo, well he's still in the hospital under guard. In a statement, his family condemned terrorism and offered, and I'm quoting here, heartfelt condolences to the family of Lee Rigby.

Since Rigby's death, police in the UK are confronting a spike in anti- Muslim demonstrations and anti-Muslim violence as well. Fred Pleitgen joining me now live from CNN London with the latest -- Fred.

FRED PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: Hi, Jim.

Yeah, kind of a tense situation here in many places. On the one hand, of course, we've been reporting about all these demonstrations that have been going on with these far right-wing groups like the English Defense League, but there have also been attacks both on mosques as well as Islamic cultural centers.

And there's a group that monitors attacks like this, both verbal abuse as well as physical abuse as well. And they've seen an absolute spike in events going on. Let's look at what's going on.

(BEGIN VIDEO CLIP)

MICHAEL ADEBOLAJO, MURDER/TERRORISM SUSPECT: You people will never be safe...

PLEITGEN: This video continues to shock England. Michael Adebolajo seeking to justify the meat cleaver killing of British soldier Lee Rigby, saying it was in revenge for the deaths of Muslims.

ADEBOLAJO: ...an eye for an eye and a tooth for a tooth.

PLEITGEN: Now Muslims in England are feeling the backlash. The Islamic community center in the town of Grimsby was firebombed this past weekend. Two men have been arrested on suspicion of arson. The local imam says the community is scared.

IMAM AHMED SABIK, GRIMSBY MOSQUE: We became really worried about our children, our families, our people attend the mosque, because of some people who did understand Islam and who do not understand they must not link such a crime, which we condemn, with Islam or with Muslims.

PLEITGEN: The radical right-wing English Defense League has staged anti-Islam demonstrations in the wake of Rigby's murder. There also have been reports of violence.

AMANI EL-SEHRAWEY, CASEWORKER, TELL MAMA: How can I help you?

PLEITGEN: Tell Mama is a charity that monitors anti-Muslim attacks. Amani El-Sehrawey says its hotline has been ringing off the hook.

EL-SEHRAWEY: It can be an assault on an individual on the street, or a vandalism attempt at a mosque, or it can just be hate speech online. And we process everything that comes through. But usually we deal with about four to eight.

At this point, we've dealt with 193 incidents since the killing in Woolwich.

PLEITGEN: Of course, only a small minority are involved in reprisal attacks and hate speech against Muslims.

For the most part, this nation is still in mourning, with a sea of flowers well over 100 yards long, laid down by people of various faiths.

Muslim leaders in Britain were among the strongest voices condemning the killing. And shortly after the murder, Prime Minister David Cameron warned of linking the attack to Islam.

DAVID CAMERON, BRITISH PRIME MINISTER: This was not just an attack on Britain and on the British way of life, it was also a betrayal of Islam and of the Muslim communities who give so much to our country.

PLEITGEN: But analyst Will Geddes says there is lingering anti-Muslim sentiment among some in England, which right-wing groups are trying to exploit.

WILL GEDDES, INTERNATIONAL CORPORATE PROTECTION: In the wake of the Woolwich attack. We're seeing the far right gaining some sort of momentum, certainly not only in their attacks but in the anti-sentiment they have against the Muslim community.

The greatest concern is that this is probably one of the largest fallouts that we've seen in the wake of a terrorist attack. And we haven't seen anything like this since 7/7.

PLEITGEN: There are other things that fan the flames, though. A British World War II memorial was defaced with Arabic writing on Monday, causing further tensions at a time of reflection and mourning.

(END VIDEOTAPE)

PLEITGEN: And Jim, and so there have been some troubling events. But one of the things that we always have to keep in mind in all of this is even though there are some right-wing groups who are trying to capitalize on this, and as we can see some other things of them going on as well, the voices of reason are still the ones that clearly outweigh here in this country.

And one of the voices of reason is one that you talked about, was the parents of Michael Adebolajo who came out with that statement. And one of the things they also said aside from giving their heartfelt condolences, is they also said they want to make clear this attack had nothing to do with Islam, nor would it be justified by Islam.

So clearly there are a lot of people who are trying to get that tension out of society at this very important time, Jim.

CLANCY: Many voices being raised. And the question always comes up, as you noted in your report, who is listening.

Thank you very much. Fred Pleitgen reporting from London.

Agence France Presse is reporting a 21-year-old man arrested in the weekend stabbing of a French soldier has now admitted to his crime. He's accused of stabbing a soldier in the neck on Saturday, a Paris prosecutor says. The suspected converted to Islam just a few years ago. And it's believed that attack was motivated by religious ideology.

France's defense minister says the victim was targeted, because he is a soldier.

The 23-year-old victim was released from the hospital on Monday.

Let's turn now to the civil war underway in Syria. There's a new and a major rift between opposition groups as they try, but fail to present a united front ahead of next month's Geneva peace talks.

Nick Paton Walsh following developments for us from Beirut.

What are these divisions in the opposition really a symbol of?

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT: Well, this is the local coordination committee, effectively the grassroot on the ground civilian part of the revolution, issuing a statement they're basically fed up of what's been going on now in Istanbul for the last four days and for the months before that. That is the Syrian civilian opposition leadership getting together and trying to work out who should be in their membership body and what their major positions are on things like the Geneva peace talks that Russia and the U.S. are trying to put together at some point in June.

But you have to listen really to the words being used by this joint statement and from people on the ground inside Syria about their opposition -- people in exile in Istanbul, quite remarkable. They say quite simply it confirms their initial conviction that the coalition based on its current structure is impotent to carry out the duties entrusted to it, because of the negative interpolitical bickering between various groups and members. Very dismissive there.

These are people, of course, daily experiencing the horrors of the war inside the country, talking to leadership outside of the country, often meeting in expensive hotels in the capital of Turkey to again talk again and again about their various political divisions and who should effectively even be their leader.

Remember, Moaz al-Khatib, who resigned as their president some time ago, though he's staying on as an effective figurehead, Jim.

Real chaos. The key issue being that unless they get their act together quickly it's going to be hard for them to speak with a unified voice if these talks in Geneva in June ever come through -- Jim.

CLANCY: All right, on another front, it's not only disarray on the diplomatic front, if you want to call it that, the organizational front, but on the battlefield it looks like the fight for Qusayr is coming to a climax.

WALSH: That seems to be what certainly the regime and Hezbollah are pushing forward as a message. We have just spoken to a doctor at one of the key hospitals, a state hospital where basically where they're trying to treat injured inside there. He describes 200 dead, about 1,000 injured so far. Heavy shelling. They're burying the dead at night in the lulls in shelling. There he talked about a really harrowing case, actually, of one man brought into their hospital who his blood pressure was so low they really couldn't do much to treat him. His friends were blowing through his respiratory tube because they'd run out of oxygen to try and keep him alive. But most really hoping he would die soon to limit his suffering.

And also talking about the enormous trauma children are experiencing. Many of them experiencing imbalance, loss of balance, hyperactivity, extreme terror, some even wetting themselves. Terrified, this doctor, that many of them will end up being injured, dying, or simply go crazy because what they're experiencing inside that town.

Now, for at least over a week, heavily bombarded and encircled by a combination of Hezbollah militants and also, it seems, some Syrian army troops, too, Jim.

CLANCY: Nick Paton Walsh with the latest, reporting live from his watch post in Beirut. Thank you, Nick.

Well, ahead right here on News Stream, our special focus on the age of China. Hollywood trying to win over mainland moviegoers. And do you know what that means? It means you're going to see more Chinese roles in the next installment of a proven blockbuster.

Also, Chinese tourists hitting the streets of New York in record numbers. How is that playing? Stay with us.

(COMMERCIAL BREAK)

CLANCY: Welcome back to News Stream, everyone.

And you know all this week we've been looking at China and its growing clout on the world stage.

Now the movie going audience in the world's most populous nation is on the rise, no doubt about that. And no doubt about the fact Hollywood is taking notice. Ivan Watson tells us about a unique joint venture that's integrating Chinese themes into a blockbuster franchise.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: This photo opportunity here, this is the beginning of an audition process for what will be a new reality TV show here in China airing this summer. And there's a lot more to this than meets the eye, because the contestants will be auditioning for one of four parts in an upcoming installment of the Hollywood movie series The Transformers.

UNIDENTIFIED FEMALE: Everybody have a Transformer in their heart.

UNIDENTIFIED FEMALE: My wish is I can join this movie.

UNIDENTIFIED FEMALE: Four roles. You can choose which one you like and have an interview.

WATSON: Producers are looking for four character archetypes -- a sexy female actress, a martial arts action star, a cute Lolita type character, and a computer geek.

Which one do you want to be?

UNIDENTIFIED FEMALE: The sexy lady. I want to be a Chinese star like Megan Fox.

UNIDENTIFIED MALE: ...to be an actor for this film.

WATSON: Why do you think Transformers is looking for Chinese actors?

UNIDENTIFIED FEMALE: I think there's a market in China. There's a lot of people. And it's very popular.

UNIDENTIFIED FEMALE: I want to be an actress, to be a star.

WATSON: The producers clearly have a couple of goals here. First and foremost, they're following a clear trend in Hollywood these days where they're trying to tap into lucrative Chinese movie going markets. And secondly, by reaching out to performing arts universities like this one in Beijing, they're recognizing that there is an almost universal aspiration among many young people also here in China that everybody wants to be a star.

Ivan Watson, CNN, Beijing.

(END VIDEOTAPE)

CLANCY: Well, no spitting, no littering and definitely no cutting in line. Beijing issuing new official guidelines for Chinese tourists when they travel abroad. Now the rules are posted on the central government's website.

Some of the other things they bar, climbing on or even touching ancient relics. Well, that one is important after a 15-year-old Chinese tourist carved his name into a 3,500-year-old piece of stone at Egypt's Luxor temple. That graffiti caused outrage in China, and as a matter of fact around the world with Chinese netizens exposing and criticizing the teenager.

Well, manners aside, as their purchasing power increases, the Chinese are spending more on travel. The tourism industry trying hard now to cater to their needs. Richard Roth has more from the Big Apple.

(BEGIN VIDEOTAPE)

RICHARD ROTH, CNN INTERNATIONAL CORRESPONDENT: It's hard not to run into Chinese tourists on the sidewalks of New York. Large Chinese tour groups are everywhere and ready to spend.

From Lady Liberty in New York Harbor to the top of the Empire State Building, the Chinese tourist is ever present.

UNIDENTIFIED FEMALE (through translator): We actually see New York City all the time in the movie and TV -- on TV, and we really want to come here.

ROTH: How come you don't have a sign in Mandarin saying Beijing this way.

JEAN-YVES GHAZI, EMPIRE STATE BUILDING OBSERVATORY: Because Beijing is actually here in New York City right now right here with us.

ROTH: First, it was Chinese business travelers. Now, relaxed visa rules and a strong economy back home brings busloads full of vacationers.

GEORGE FERTITTA, CEO, NYC & CO: The Chinese (inaudible) is clearly an incredibly growing market. Over the last year, we've grown about 22 percent.

UNIDENTIFIED MALE: So now we are driving to the eastern part of Manhattan.

ROTH: 40 percent of all Chinese visitors to America come to New York City.

UNIDENTIFIED FEMALE: I love New York.

UNIDENTIFIED FEMALE: We're on the east side. And this is the East River.

UNIDENTIFIED MALE: I mean, every single Chinese people have heard about New York when they heard about America, so we just want to come and see it.

ROTH: Would you be interested in buying a piece of the Brooklyn Bridge. I can sell you that, that is New York tradition.

UNIDENTIFIED MALE: If I can, sure.

ROTH: L&L Tours shows them a good time. 10 years ago, tourists brought their own food and didn't want to buy anything.

RICH SUN, VP, L&L TRAVEL ENTERPRISES: Their purchasing power has grown dramatically. Now we have the customers who are here to buy iPad, iPod, different computers and all the luxury brands.

UNIDENTIFIED FEMALE: Oh my god, I know that my friend spent I think $10,000 dollars by shopping.

ROTH: Luxury goods stores like Tourneau make sure to have Mandarin speaking employees to watch out for that growing clientele.

LARRY BARKLEY, VP OF RETAIL, TOURNEAU: We sent key members of our marketing team to China in order to reach out to the different groups that are organizing tours to come to the United States.

ROTH: One UN study said the Chinese spent $102 billion last year in their world travels, surpassing the U.S. and Germany.

UNIDENTIFIED MALE: (inaudible) nicely, so it's going to make everyone happy.

ROTH: Any final thoughts?

UNIDENTIFIED MALE: Welcome to New York City.

ROTH: Richard Roth, CNN, New York.

(END VIDEOTAPE)

CLANCY: All right. Be sure to join us tomorrow on News Stream. We'll have more of our Age of China series.

But now to another story, one that's a little more troubling. He's only days old, doctors already say he has beaten incredible odds just by surviving for more than an hour in a sewer pipe. His story just ahead.

And then later, News Stream's very own Kristie Lu Stout in going to join us, bring us her conversation with U.S. philanthropist Melinda Gates. Hear how Gates is working to help women around the world.

(COMMERCIAL BREAK)

CLANCY: This is News Stream on CNN. I'm Jim Clancy. And here are your headlines.

The Washington Post is reporting Chinese hackers accessed designs for several U.S. weapons systems. Citing confidential reports meant for the Pentagon, the White House calls cyber security a key concern. It says the subject will come up when President Barack Obama meets Chinese president Xi Jinping next week.

Dateline Istanbul -- a meeting of the Syrian opposition still appears deeply divided. And now rebels on the ground in Syria are blasting those leaders saying the opposition coalition is failing to represent the Syrian revolution. The divide comes ahead of a planned peace conference in Geneva next month.

A French prosecutor says the stabbing of a soldier near Paris was apparently motivated by religious ideology. French police have arrested a 21-year-old man who reportedly has a history of petty crime. The prosecutor says the suspect converted to Islam a few years ago. Agence France Presse reporting he has admitted to the attack. The soldier was attacked from behind with a knife, or box cutter, but his wounds are not life threatening.

The World Health Organization says the number of people who have contracted a deadly new coronavirus now stands at 49. It says 27 have died of the SARS-like disease. The WHO says the greatest global concern, the potential for this coronavirus to spread.

People around the world have been shocked by the story of a newborn baby in China who was rescued from a sewer pipe. He's now known as Baby 59 for the number on his incubator. His mother is being treated at another hospital.

Police still investigating what exactly happened, but they think it was an accident. David McKenzie has more.

(BEGIN VIDEOTAPE)

MCKENZIE: It was the amazing video seen around the world, the race against time to save this baby from a sewage pipe in China.

Today, we have new pictures of the baby resting comfortably, drinking formula and recovering in ICU. Doctors say he should be OK.

Incredible when you consider what he went through.

Alarmed neighbors called first responders when they heard crying and saw a tiny foot.

Tearing away the pipe, they can't reach the baby wedged inside. Pipe and child rushed to a nearby hospital.

Surgeons and firefighters gingerly using pliers to rescue the infant, revealing a newborn boy, afterbirth still attached.

On local TV, police saying it could have been an awful mistake.

UNIDENTIIFED MALE (through translator): The woman started to feel a stomach ache and then she rushed to the toilet. After she stayed in the toilet for awhile, she gave birth to a baby. She tried to grab something to help herself because there was too much blood. She couldn't hold the baby anymore and he slid into the sewage through the hole of the toilet.

MCKENZIE: Investigations are still ongoing. And the boy is recovering in ICU. Police posted these pictures of him online.

They say rescuers brought blankets and formula, deeply touched by his ordeal. Without a name, just Patient 59, an innocent boy miraculously surviving a terrible ordeal against incredible odds.

David McKenzie, CNN, Beijing.

(END VIDEOTAPE)

CLANCY: Wow, it should come as to no surprise a story like this one widely discussed on Chinese microblog -- for instance Sino Weibo. Many have expressed sympathy for the newborn. This Weibo users writes, "strong baby. Hope he'll be adopted by a good family."

Others, though, voicing outrage toward the mother. This comment read, "please press charges on this woman."

But there are still many questions about the young mother's actual situation. This post reflects that uncertainty. It reads, "why is nobody blaming the father? What about his responsibility for this baby?"

More than 200 million woman in developing countries who don't want to get pregnant, don't have access to contraception. Now that is according to the Bill and Melinda Gates Foundation.

The stunning fact has spurred its founders into action. Kristie Lu Stout caught up with Melinda Gates at the Women Deliver 2013 conference underway right now in the Malaysian capital of Kuala Lumpur.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN INTERNATIONAL CORRESPONDENT: Now you are out to get modern contraceptives to another 120 million women around the world by year 2020. I mean, this is huge. How do you plan to do it?

MELINDA GATES, BILL AND MELINDA GATES FOUNDATION: Well, it's really about countries, countries coming up with plans. Now that we have this $2.6 billion in resource from donor nations, the countries build plans from the bottom up. And then we make sure that they're resourced appropriately.

LU STOUT: You're up against a lot. There are conservative groups, religious groups in Africa, parts of Asia and the United States, very vocal against birth control. There are also policies like forced sterilization in India. So how do you plan to counter that negative influence.

GATES: Well, what we have to do is put the women and the girl at the center of this. Where family planning got in trouble in the past was that they had these central programs from the top where they were trying to achieve something in population and they forgot about the woman, that these are about giving her options, educating her and letting her make a voluntary choice. If you do that, fantastic things happen for her and her family, for the community at-large, country and then globally.

LU STOUT: And is that message getting across? I listened to your speech earlier today and I could tell that you're trying to reframe the issue. It's not about access to contraception. It's not about access to birth control, but access to a better life for women and girls. Is that message getting across?

GATES: Absolutely. And the reason that we know that's the right message is that's what women tell us all over the world. I mean, I've traveled now for over a decade and whenever I would go into talk to women about vaccines, they would bring the conversation around to, well what about this shot I used to get, which is Depo-Provera which is a lot of what women use around the world.

And they would say, when they would talk to me about contraceptives, they're talking about it because of the next generation. They're saying I want to feed the children I have, I want to educate the children I have, but I can only do that if I can limit how many I have or space them.

LU STOUT: A personal question about faith, you are a Catholic. And we know the church's stance on contraception. So how do you reconcile your faith and your work?

GATES: Well, the Catholic church has an amazing history of social justice. And they really believe in helping the vulnerable, helping women, helping children. And so I bridge that gap. I grew up in the Catholic faith. I'm still Catholic. I love that social justice mission. And those are the women that I need out on the ground. And so -- but what I know that women also need is a modern tool. We need to educate them and let them make that decision.

So I bridge the two by saying this is helping women survive. And it's helping babies survive.

(END VIDEOTAPE)

CLANCY: Melinda Gates there, co-chair of the Bill and Melinda Gates foundation speaking to our own Kristie Lu Stout just a little bit earlier this Wednesday.

As all of you know, the CNN Freedom Project reflects our commitment to the fight against modern-day slavery. And we now have an update on a story that we brought you in the documentary The Fighters. There's been a legal victory of sorts for three Filipino girls featured in that program. The girls were forced into sex slavery, but information they provided to U.S. investigators helped authorities convict one child pornographer in Pennsylvania. The man was sentenced to 12 years in prison on Tuesday. Investigators say he visited an internet site that featured the girls and others in live sex shows in the Philippines.

The girls say they were forced to dance and perform sex acts in front of a camera. Customers could watch from anywhere in the world. One girl described her humliation.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: At the internet cafe, they tell me to take my clothes off and then they make me dance. I was kind of embarrassed, because I'm not used to being naked like that. I'm used to having my clothes on so I was shy.

(END VIDEO CLIP)

CLANCY: A tragic story, but all three girls are now safe. They were rescued, of course. Remember, you can join the fight against modern-day slavery. We have a list of vetted charities that are making a difference in countries all around the world. You can find those resources at CNN.com/freedom.

A hurricane warning has been issued for parts of Mexico's Pacific Coast as a strong storm is approaching. Mari Ramos is at the world weather center with more -- Mari.

MARI RAMOS, CNN WEATHER CORRESPONDENT: Hey, Jim, thank you.

You know, this is one of our top stories right here at CNN world weather. This is the first tropical cyclone to threaten the Americas so far this hurricane season. In the eastern Pacific the hurricane season begins in the middle of May, a little bit earlier than in the Atlantic. That starts on June 1.

This is the storm we're talking about. It is Tropical Storm Barbara. It's already bringing some rain along the coast of Mexico here, anywhere from Guatemala, as you can see back over here, all the way through Chiapas, Oaxaca, and all the way back over here. There's also a lot of moisture kind of fanning out from this storm.

The storm itself, it's just offshore, as you can see right over here. Winds are up to 90 kilometers per hour sustained, gusting to about 110. That's significant, because the National Hurricane Center is saying now that this could actually become a hurricane before it makes landfall on Mexico's southern coast here. And that's fairly important, because whether or not it becomes a hurricane, it's still going to bring some very heavy rain.

But the fact that it could become a hurricane has prompted those hurricane warnings that you just mentioned. And they include an area right in here.

It is one of the more densely populated areas of this part of Mexico, right along the coast, a big city, bit port city, Salina Cruz. There's some refineries here, the large oil refineries in that area as well. And then after that you get into some very mountainous terrain, which is also a huge concern.

Well, the hurricane warning only covers the coastline, and for people living along the coast I think as the storm moves inland, even though it might be a weaker storm, it does have the potential of causing quite a bit of damage, mainly because of the amount of rain that it is expected to produce. You can see that track taking it right across this very narrow area of land that (inaudible) area.

With it -- very quickly, actually. Right now it has been kind of meandering around here, moving very slowly, but then we expect it to pick up speed as it continues to move to the north -- generally to the north over the next 24 hours.

It could be making landfall in less than 12 hours. And that's also very important, because when storms are this close to land, people really need to pay attention to them, because changes can happen very, very quickly.

Notice the swath of red also that moves across this area. That's about 24 centimeters of rainfall. And that's very significant with the threat of flooding and mudslides.

So those of you that are -- have tropical cyclones in other parts of the world, like the Philippines for example, or parts of southeast Asia, you guys know what a danger this is for people when they have these mountainous areas and this very heavy amounts of rain.

Switching gears, let's head to the U.S., again. Look at these pictures, just absolutely amazing, Jim. Storm chasers, again, catching a tornado, this huge tornado on tape in rural parts of Kansas. No damage reported from this particular funnel, but you can see again how intense this could have been had it gone to a more populated area.

There were other twisters around. Let me go ahead and show you the pictures from some of the damage that happened along other parts of Kansas, as you can see there. Overturned vehicles, destroyed homes, pictures that we could repeat itself again in other parts of the U.S.

If you quickly come back over to the weather map with my last 10 seconds or so, this area right in here could again see the potential for some strong storms, not much has happened as of yet. But I want you to notice this area that has a moderate risk of possible tornadoes in this area. So we'll be watching it closely. And even if they don't get tornadoes, damaging winds, hail, very heavy rain again possible, effecting millions of people across the central U.S.

Back to you.

CLANCY: Just awesome images, Mari. And as you note, if that had been a populated area, that was a huge storm, a huge tornado touching down. Thanks so much for sharing again.

Well, you are watching News Stream. And straight ahead in our report, China's electronics giants are looking for growth abroad, but what will it take to become real world leaders? We're going to ask our regular contributor Nick Thompson just that question.

(COMMERCIAL BREAK)

CLANCY: All week, we are focusing on the rise of China. And this week's News Stream, fast forward. We want to focus on Chinese electronics and whether they can become the big brands of tomorrow. Let's ask Nick Thompson, senior editor at the New Yorker.com. He joins us now from our studios in, where else, New York.

And what are their chances? You've got Apple that's led the way, Sony in Japan fading somewhat in the background, but the South Koreans coming on strong as well. Where does China fit in?

NICK THOMPSON, NEWYORKER.COM: Actually, China is doing extraordinarily well. And they've had an incredible boom. If you look at Smartphone sales, and Smartphones are the products that we all know the most, China is third and fourth place now internationally. So, first you have Samsung and Apple, and then you have Huawei and ZTE all the way ahead of Sony.

So, China is actually doing exceptionally well. Huawei just passed Sony Ericsson as the largest world provider of infrastructure.

So, China is doing -- China is doing great.

I mean, there are things that China needs to do better if it really wants to have the reputation of a Samsung or an Apple. It needs to become known for high end products. And it needs to figure out how to get in the U.S. market. But the growth lines for Chinese electronics manufacturers are quite positive.

CLANCY: Well, Chinese products are everywhere in the United States, but they're not name brands. How do they get to that point?

THOMPSON: Well, in the United States, actually, they don't want to be name brands. What happened with Huawei is that they became associated in the minds of Americans with Chinese spying. Because there is so much Chinese hacking, because there are so many problems in this country with Chinese hackers taking corporate secrets, Huawei is basically been pushed out of this country, right. There was a congressional investigation last fall. There are big reports. And Huawei sort of backed away this winter and said we're not going to leave completely, but we're not going to make this a priority.

So what China needs to do is two things. Number one, they need to figure out how to deal with this hacking problem. May be some progress will be made in the talks with Obama next week. And that's -- I mean, that's really the most important thing if they want to succeed here. Because until that happens, and until there's an improvement in relations between the two countries, it's going to be very hard for big name Chinese manufacturers to succeed here.

CLANCY: What are some of the devices, perhaps, that they might be able to exploit? I mean, it's Chinese workers that are putting together the incredibly successful iPad, but you've got the South Koreans, as we've noted, that are competing in that area. Are there any specific areas, devices, where the Chinese could excel and take marketshare?

THOMPSON: Absolutely.

So one important point about the iPad and Apple is that they're made by Foxconn, which is a Taiwanese company. It's unclear whether Apple would allow those to be made by a Chinese company, because of the hacking of the intellectual property and the spying concerns. So the line between China and Taiwan is pretty important in that particular case.

The devices that could succeed, right. So smartphones, of course, you know as the world picks up smartphones, low end smartphones, China has been very good at that. China is now making more of a push for high end smartphones -- I should have said low end, you know, regular phones. High end smartphones.

Tablets, you're seeing initiatives right now. In the United States, the tablet market is pretty saturated. Around the world, there's a lot of opportunity.

Televisions. You've just seen the first Chinese manufacturer make a great -- a fantastic television that all the gadget reviewers are excited about.

So, there's opportunity in all these devices.

And of course networking infrastructure, that's one place where China has done exceptionally well.

CLANCY: You know, you touched on a little bit earlier. One thing that has to change is the perception that Chinese products are not first rate quality. And if China wants to get into the U.S. market, into the European market in a big way, something has to change there. The question really is, do the Chinese know that?

THOMPSON: I think the Chinese do know that. I mean, you've seen initiatives, you've seen government reports saying to the manufacturers very specifically we need to make high end products, not just low end products. We need to not be known as the brand that produced cheap knockoffs, we need to be known as the country that produces great stuff. And I think they're very aware of that. I think they're working very hard on it. It just happens that because of the way the Chinese market has developed, there have been customers for low end products first, because it's a developing nation getting rich very quickly, the companies have sort of focused on serving that market, which hasn't made them entirely adaptable to the U.S. and European markets.

Now that China is getting rich so quickly, I think you'll see a lot more overlap. And I do think you will see that Chinese manufacturers doing just what you say.

CLANCY: Nick Thompson's take there from New York City. Nick, as always, thank you.

THOMPSON: Thank you so much.

CLANCY: Well, still to come right here on News Stream, the Pacers try to beat the Heat, but they have to find a way past LeBron James to do it. A world sport update straight ahead.

(COMMERCIAL BREAK)

CLANCY: You're watching News Stream right here on CNN. And I want to give you a look at the visual rundown of all of the stories that we've got in our show for you today. In a few minutes we're going to hear from Apple CEO Tim Cook on whether his company is going to make wearable gadgets like a wristwatch. But now let's turn to sports and the battle to face the San Antonio Spurs in the NBA finals. The NBA playoff series between the Miami Heat and the Indiana Pacers, it still has a long way to go. World Sport's Alex Thomas is here to tell us, well, just why.

ALEX THOMAS, CNN SPORTS CORRESPONDENT: Yeah, hi, Jim. We were telling you earlier in the week, weren't we, about the Western Conference Final and why that's done and dusted. It's a very different story in the east where the Indiana Pacers have leveled their series against the reigning NBA champions. So the Miami Heat can't finish this one off back at their home court on Thursday.

Pacers coach Fran Vogel had to go back to the drawing board after his team were thrashed by Miami in game three. And Indiana gave the home fans something to cheer about on Tuesday night, going 11 points clear at one stage, despite some great defensive play from LeBron James -- look at the way he denies George Hill here in the third.

Well, Roy Hibbert scored 23 points for the Pacers. And Lance Stevenson added 20, including a buzzer-beater at the end of the third. And in the fourth, Indiana went on a 13 points to three run, put the Heat on their back foot. Hibbert also adding 12 rebounds.

Miami's situation made worse by LeBron getting fouled out of the game, only the second time that's happened to him in a postseason game in his career. The Pacers finishing with a 99-92 win, leveling the series at 2-2 as they head back to Florida for game five on Thursday.

(BEGIN VIDEO CLIP)

LEBRON JAMES, MIAMI HEAT FORWARD: There were a couple, you know, calls that I didn't feel like, you know, were fouls, personal fouls on me. But that's how the game goes sometimes.

ROY HIBBERT, INDIANA PACERS CENTER: We know their the champs, you know, they are one of the best teams in the NBA right now. And we know we're going to be fighting an uphill battle, but we're never going to give up. We're relentless. And all those guys in there, they believe that we can win.

(END VIDEO CLIP)

THOMAS: French Open tennis organizers are playing catchup after rain badly disrupted the action on day three at Roland Garros. Roger Federer and Serena Williams are both scheduled to play their second round matches later, but more than a dozen first round contests still hadn't been finished by the close of play on Tuesday. Men's world number one, Novak Djokovic, even went as far as suggesting they should put flood light in, helping the action carry on later in the evening. He only needed a little over two hours to win his opening match in straight sets.

And celebrating their 125th anniversary, the British and Irish Lions rugby squad have been training in Hong Kong. They flew in to the special administrative region of China on Tuesday. They're due to play a match there on Saturday against the Barbarians. It'll be the first time the Lions have contested a game in Asia where interest in the sport is booming.

We'll have more stories in our World Sport show in just over three hours from now. For now, Jim, back to you.

CLANCY: All right, Alex, looking forward to that. Thank you.

Well, now to another athletic achievement -- and I've got to tell you, some spectacular video. It is from the highest mountain on our planet. The summit was reached some 60 years ago and now many people attempt to climb Everest. This group took four days to get to the top, but then, get this, Russian extreme sports star, there he goes, Valerie rose off -- lept right off of it. The 48-year-old was in an altitude of more than 7,000 meters, falling at more than 200 kilometers an hour before deploying his parachute and then coming down for a landing on a glacier below.

What a ride, what a spectacular feat by Valerie, and all documented on video. You're going to see a lot of that one. Red Bull behind it.

There you are.

Well, in the technology world, it's really not about phones, or tablets any more, the focus is increasingly on wearable technology like smart watches and Google Glass, you know that one. The big question is whether Apple is ready to unveil its own wearable gadget. But as Dan Simon reports, their CEO isn't saying.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT: Google's newest product called Glass has been steadily gaining buzz. That new wearable technology that takes videos with a simple command.

UNIDENTIFIED MALE; OK, Glass, record a video.

TIM COOK, APPLE CEO: I think the likelihood that it has a broad range appeal, I don't -- that's tough to see.

SIMON: But the company that pioneered the smartphone may soon branch into the category known as wearables, if you're to read into comments like this.

COOK: I think there will be tons of companies playing in this. I don't...

UNIDENTIFIED MALE: And will Apple be one of them?

COOK: I don't want to answer that one.

SIMON: Sharing the stage with technology bloggers Walt Masburg (ph) and Tera Swisher (ph), Cook weighed in on other hot tech topics like, "why doesn't Apple come out with a bigger screen for the iPhone?"

COOK: A large screen today comes with a lot of tradeoffs.

SIMON: And why not come out with other versions of the phone like its competitors?

COOK: We haven't so far. That doesn't shut off the future.

SIMON: Then the subject turned to taxes, where Apple has recently been criticized.

COOK: We pay $6 billion. And that is the highest in the U.S. We pay more taxes than anybody.

SIMON: Cook's appearance here comes about a week after testifying in Washington. He was questioned by senators about the company allegedly keeping money overseas to avoid paying U.S. taxes. Apple has $144 billion in cash, but about $100 billion of that is kept offshore.

But not subject to U.S. corporate taxes.

SEN. JOHN MCCAIN, (R) ARIZONA: And you understand there's a perception of unfair advantage here?

COOK: Honestly speaking, I don't see it as being unfair. I am not an unfair person. That's not who we are as a company.

SIMON: But as Jon Stewart noted, it wasn't exactly grueling testimony.

MCCAIN: You've manged to change the world, which is an incredible legacy.

SEN. CLAIRE MCCASKILL, (D) MISSOURI: I harassed my husband, until he converted to a MacBook.

UNIDENTIFIED MALE: Your products are great.

SEN. CARL LEVIN, (D) MICHIGAN: My granddaughter even knows how to use it.

MCCASKILL: I love Apple. I love Apple.

JON STEWART, HOST, THE DAILY SHOW: What the hell was that? What is the opposite of a Genius Bar?

UNIDENTIFIED MALE: Did you give them all free stuff? Or, what happened?

COOK: No, I didn't -- I didn't feel it was a lovefest. I know that was sort of came out in the media.

Sitting in a witness chair, you don't necessarily have that feeling.

SIMON: Dan Simon, CNN, Rancho Palos Verdes, California.

(END VIDEOTAPE)

CLANCY: And that's News Stream, but the news continues right here on CNN. World Business Today straight ahead.

END