26/04/2012 Newsnight

There was a cover up - but not by me, or my son. Rupert Murdoch gives

his account of hacking at the News of the World. Someone took charge

of cover-up. Which we were victim to and I regret.

Now he's been accused of telling a "shameful lie" to Leveson by the

man he has put in the frame. To discuss contrition and finger

pointing, Anne Diamond, a victim of phone hacking, the MP who has

dogged the Murdochs and the writer who thinks Rupert's a visionary.

And in the land of the free the rise of crony capitalism. How the

USA embraced a Soviet style rescue. On the worse day for the American

economy since 1929 the recovery began of its most iconic industry.

How that happened, tells us a lot about the way America will recover.

And how the rest of the world might too. Did that We visit Chongqing in

China, and the scene of the strange death of Neil Haywood. Actually

happen. How did a communist party official

turn an entire city into his own Good evening. Rupert Murdoch

wreaked havoc at the Leveson Inquiry today, affectively accusing

senior figures of a cover-up over phone hacking and hiding the truth

from himself and his son. But, even as he was giving the thumbs up as

he left the inquiry, one of those he apparently put in the frame hit

back. Accusing Mr Murdoch of a shameful lie. So, how credible is

Mr Murdoch's account that he and his son were innocents in the

affair? For the flesh and blood Keith

Rupert Murdoch, just for the film creation the basic question is the

same. Is that really your idea how to run a newspaper. I don't know

how to run a newspaper, I just try everything I can think of. Will

Murdoch knows how to run newspapers, he owns 150 of them. But he made

too little attention to the biggest - the News of the World. It was too

late when he realised there was hacking going on, and then a cover-

up. But by who? There were strong characters there. The person I'm

thinking of is the friend of the journalist, drinking pal, and, is a

clever lawyer, and forebade them to see their evidence, I mean

statements reporter, that, this person forebade people to go and

report to Mrs Brooks or James. Mrs Brooks is Rebecca, his protege

and James is his son, the ousted heir apparent. The man who

allegedly ran the cover-up is Tom Crone, the News of the World

world's lawyer for years. Tonight, Mr Crone described the allegation

as "a shameful lie", saying "it was perhaps no coin coincidence, Mr

Murdoch had singleed him out alongside mile mile mile" the

former editor. The same two people who point out his son's tofdz the

Parliamentary Select Committee last year was inaccurate. Rupert Murdoch

was asked whether he in fact wanted the truth buried. Some might say

all this picture is consistent, with one of a desire to cover-up,

rather than a desire to expose. sorry, I take that back. Excuse me.

I'm very thick-skinned Mr Murdoch. Do not worry one moment. Leveson

leaf wanted to know why Mr Murdoch hadn't asked the right questions.

You would really want to know, what the hell was going on as you put it.

Because the news media was your printing, was running there through

your vains, somebody said about you? I have to admit that some

newspapers are closer to my heart than others, but, I also have to

say, that I failed. This was the moment last summer, when Rupert

Murdoch gave his public display of confidence in the beleaguered

Rebekah Brooks. Struggling to make their way across the street, the

press mogul had become prey. What did he think now? Part of a game.

What's the game? Harass people. You know, when I was harassed, I was

trying to walk, all of ten yards across the street. I had another 20

or so outside my apartment this morning. But part of the game, is

harassment, intrusion, these are recurring themes in the behaviour

of the press for decades. Would you not accept that? Yes. It can take

many forms, but yes. And then there was the mos mos mos case, where a

News of the World reporter threatened to publish pictures of

two women, unless they co-operateed with the newspaper. Mr Leveson

described that as "disturbing". He quoted the judge who awarded

damages. I don't think Mr Justice, uses too strong a word as he

describes it as a form of "blackmail". Apologise, I didn't

read and I may agree with every word if I read it. But, it's a

common thing in life, way beyond journalism, to, for people to say

I'll scratch your back if you scratch my back. So it was a common

thing in life, you scratch my back if I scratch your back. That's true,

but it is interesting if you say that's no part of the implied deal

in your relations with politicians over 30 years, Mr Murdoch, is that

right? Yes, I don't ask any politician to scratch my back.

That's a nice twist, but no, I'm nol falling for it.

He's good reason to be guarded it is just revealed Ofcom is stepping

up its investigation, into whether BSkyB is a fit and proper company

to hold a broadcast license. It asked newsgroup to send more

documents relating to phone hacking. It is the clearest sign yet, that

misdeeds in the Murdoch press could jeopardise his entire empire Back

at Leveson a lawyer foor the National Union of journalists said

some Murdoch employees, too fearful to speech publicly had told of

bullying. A journalist with six years of experience, "During my

time at News of the World I experienced constant bullying, my

editor two find fault" and so on. Clear evidence of clear culture of

bullying. Why didn't she resign? The problem with that might be she

needs a job. And that's actually been some of the evidence I

received. Mr Murdoch said he'd thought the

News of the World staff had been a happy crew. But then in his 40

years of ownership, he neglect today keep in touch. In his words

"are blocked forever on his reputation ygsygs. With me is Anne

Diamond, a victim of phone hacking by the News of the World, Labour MP,

Tom Watson, a member of the culture select committee and author, Tom

Bower, whose recent automatic biography was serialiseed in the

Sun. Nobody from News International was available.

Tom Watson, the attack, on the News of the World lawyer, and editor.

Obvious motivation, they want to deflect. Is there anything more

going on? They're fighting like rats in a sack. Now the Leveson is

casting a spotlight on what went on at News International, they're all

claiming it was somebody else's fault. Murdoch himself is very

undignified. How credible, when you look at the massive payout, paid to

Damilola Taylor, what do you think they were paying him for? For his

silence, in my view. Looking, they deny that of course, about you Tom

Bower, when you look at Murdoch today, and that attack, he made,

and it then has been called a shameful lie, do you think it was a

smart move on his behalf? No I don't, my feeling about him is he

revolutionised the media here and invented Sky and all terpive, which

the natives, the local newspaper barons, failed to do. He's gone

wrong. Things have gone wrong, today was not a great day for him

or the day for the press. But to just finger him as the guilty man,

is wrong. There was a wrong, the whole culture was wrong. Just

because the whole culture was wrong, doesn't mean he who sat at the head

and set the tone for the organisation, that is who was

actually in front of Leveson today. I wonder, Anne, how you looked at

that. Because, at Leveson today, Rupert Murdoch said he had no re-

election of who you were. You should remind the viewers why he

should know who you are? It was dismissive, he can't quite remember

and it really wasn't that important and he's somewhere better than he

ought to be. That was the whole demeanour at Leveson of Murdoch.

During the '8 0s, and '90s, I was fodder for the Sun newspaper and

Today newspaper, two of his titles, and he may not know who I was, but

I was on his front pages in the worst form, throughout those two

decades. As one front page we can see now, the Sun front page, the

sad day of your son's funeral? was a front page I took to Leveson,

because this was to me, a brutal invasion of privacy, no matter what

you think of the public's right to know, and right to privacy begins

and the rest of T no matter what you think of celebrity culture,

that was a brutal invasion of privacy. I would loved to have him,

and Robert Jay say how do you justify that? Did you say his

apology one of sincereity? Good Lord no. I can look at him and

think he would say those things wouldn't he. He was well rehearseed,

told to be humble occasionally. He nearly lost his rag. I thought he

might get questioning where it could show his personality. Do you

think there should have been some actual contrition of the stories

like Anne Diamond's for example, there was no display of the

tkpwraef he caused people, any contrition for that? From, Murdoch,

I think he showed some contrition, but if Robert Jay actually

presented that page, that front page to Murdoch, before the hearing,

he could then have asked him for his reaction. But my feeling is the

hearing isn't well organised. therefore, when the whole question,

to go back to the whole question of coverups, do you think it's got

lost? Or by elevateing it to say, these two men are guilty and then

respond it is a shameful lie do. You think the focus is back on

Murdoch or away now? It is a mess, because I don't think you can ask

for a cover-up, unless you present the evidence. So he is fishing,

rather than actually, forensically going through, what is effectively

the allegation of a crime. So that extent it is unsatisfactory. From

the point of the view of the politicians though, a playing on

all their houses is what he seems to be saying? What he is saying is

this, when Murdoch came to London in the '60s, he was fighting to get

News of the World. Robert Max well was the crook, the Labour man, who

the Labour Party supported. The Labour Party allowed, the Labour

Government allowed Richard Desmond to buy the exPress, a man of

notoriety. So, what Murdoch is now saying, is, why should I be the

only one, put up, when the Labour Government, successfully, have

supported these rogues. It is true, you can't call yourself saints, you

are an ally of Gordon Brown, and no-one more wanted the ifrplmentier

than Rupert Murdoch. All this stuff was going on when the Government

was in Through John Major, Tony Blair, Gordon Brown, and David

Cameron have to take responsibility for this. But the key thing missing

today, they mention the Burton Copeland report, Murdoch attacked

them. Let's stick with the politics. We have a situation, where at

Chequers, there is a sleepover for Elizabeth Murdoch, Sarah Brown,

should the relationship seen to be toxyilic? Every Prime Minister,

must shoulder responsibility for making Rupert Murdoch what he is

today. He got too powerful and the lessons of the scandal should be

the current Prime Minister and the other party leaders must never let

it happen again. It looks interesting, you know, you accept

the idea that Rupert Murdoch is this incredible mogul, he controls

everything, his finger's on the pulse, so forth. And yet he seems

to be presiding on argues that was out of control. There was

criminality and all sorts of money swilling out in bribes, allegations

of bribery, and he didn't seem to know anything about it?

newspaper in Britain is a fraction of the empire, the real thing is

Fox and Universal Films. He loved it, so he can't say he was distant?

You're right he can't. And he is accepting responsibility, all the

time. The point is you don't believe his acceptance of

responsibility. I don't believe t he feigned no knowledge of the

blackmail allegation today. The judge accused wufpb the reporters

of blackmail. He was asked at the inquiry in Parliament about this

last July and asked where the staff didn't bring did to his attention,

he should have done his homework. He accepted the culture as well.

You never imagineed, even five years ago that would be the outcome.

How do you think Rupert Murdoch will be remembered? My newsagent,

when I was popping on my way here, said, why have they let him get

away with such an easy ride? They've given him an easy ride,

that's not the first time I heard that. The public perception is he

is a ver bad man, responsible for deed tkpwregaigs of our press and

not been made, no, mam humbled enough, frankly. What do you think

his legacy will be? He is the man who saved the press. You can say he

hasn't been humbled, the people who own the rest of the press, Desmond,

Bailey, deficit of the Guardian, none of the people are really

giants in the press, our press once Murdoch is forced out, will not be

a healthier place, but a poorer place. He should have been better

regulated perhaps. If he done the job better, it would be a better

situation generally. He saved a lot of titles and whole press by

forcing the unions out. At the cost of a lot of people's happyness?

They're all responsible for that. Richard Des manned and Mandy in can,

are all there to cause misery. with us, we want to discuss

something further, because the pressure on the Culture Secretary,

Jeremy Hunt intense fiedtoday when the permanent secretary refused to

confirm his version of events. Hunt's assertion the top civil

servant authorised the liaise. I just repeat what I said before,

it was a clear statement from the special advisory concern. We're

asking about your role, not the Secretary of State's role. If I may,

I'm just going to explain the nature of the statement yesterday.

Now, our political editor, Allegra Stratton is here. What is going on

with this? Well, previous guests were talking about how the Leveson

Inquiry is not organised but it seems to me the Leveson is

organising the Government. It is slightly there, you had the three

civil servants, nothing much happened other than the Mandarins

have been dragged into the story. First of all, this poor chap, who,

I think it is probably fair to say, he should have been briefed you

will be asked about this, and you better have an answer. The same

line Jeremy Hunt used the day before, instead of the tep

questions, especially Miss Hostage. He should have been more prepared,

but equally, it is now subject to legal process, so that was

embarrassing and clearly his master's voice is Leveson. Then

Neil Heywood, spoke to Leveson, to establish what could he inquiry

into, given Leveson was inquiring into so much. The other Mandarin,

is the Prime Minister's adviser on the Ministerial Code of conduct.

The idea the special adviser, was appropriate, for him to G and

Jeremy Hunt to have no oversight or sense what he was doing on his

behalf. It is not going to get worse, or is it getting worse?

is frozen. Today we had the sense of activity, but, actually, this is

all going to be about, a mauling, in front of Leveson, and Robert Jay

for the Culture Secretary, one would expect text messages and e-

mails to be brought up in front of them. I'm not saying he won't

survive that, but you can see sometimes, when Robert Jay gets

something between his teeth he goes for it. Does it matter? Well, there

are some people who are saying on the doorsteps, there's a local

election, being fought, and some are saying, this isn't coming up.

Remember the test for some of these scandals is it actually

particularly clear for people to understand. Some say, this isn't in

that order. And some people said today, the posh boys quote about

Cameron and Osbourne, is the thing that rolls, than the Leveson

Inquiry at the moment. Tom Watson, you are looking for an inquiry,

into Ministerial Code of conduct. You haven't got that. Now you're

skrieping about, saying we must have the text messages, between

Jeremy Hunt and former adviser, Adam Smith. It is getting desperate

isn't it? I think Jeremy Hunt will go eventually. And if David Cameron

wants to hold out and not have an investigation, he is the one that

raised the bar on standards, and code, he made ministers responsible

for the conduct of their special advisers, and now he is not let in

for the adviser to do his job. They can stagger up to polling day, next

Thursday, but it is not going to go away, until he does something.

the troubles of the Government's own makeing Yes I do, it is tragedy

for the Tories. I think, that David Cameron, a man of integrity but the

question is his judgment. Which I think is poor. We had Peter with

one catastrophe after another, he is not a man in control. But the

trouble really is, if I don't mind you saying, with the Hunt saga, it

is not Murdoch's fault, that he wanted to lobby, to get a perfectly

legitimate deal through n Labour's time, John Brown was in Number Ten,

it was calling Blair patrol. It is Hunt and he should have been in

control of his apartment, he should never have allowed Smith to talk to

him the way he did. That's why Hunt will probably go, because in the

end, Hunt like Cameron was not in charge of the detail. Thank you all

very much. The American Vice-President, Joe

Biden had a favourite phrase to sum of Barack Obama's presidency, Osama

Bin Laden is daet and general motor is alive. The former is lauded the

General Motors is another matter because many Republicans the

billions of dollars of taxpayers' money pumped noolt car industry to

resuscitate it, was good money, thrown after bad. Our economics

editor has been to the place they Detroit. Michigan. The American

auto industry was born here and when the financial crisis hit, it

nearly died here. But general motor, and Chrysler, got a Government bail

out of $85 billion. And it worked The industry, is back. On the worst

day for the American economy, since 1929 the recovery began of hits

most iconic industry. How that happened, tells us a lot

about the way America will recover and how the rest of the world might

too. In 2009, Brad was laid off with thousands of others, and

production stopped at this plant in lake Oran, now, both Brad and

completely retooled factory are in full swing. These jobs, are going

to be here to stay if we do a good job. So I think the jobs are on the

line, and everyone's here to do the best jobs they k It may look like

everything's back to normal, but it's not. These workers gave away

long-held rights, in return, their union pension fund got a 11% stake

in the company. With massive tax relief and handouts, they've

engineered a total change of culture. We talked together as a

team and nought what is the best way we can build this car, or have

an issue, what's the best way we can resolve the issue. So, we're

working together, instead of amendment, saying this is the way

we're going to do it. With new ways of working it's become economic to

make smaller, fuel efficient cars and they're in frostr profit. GM

made $7 billion, even though they're the sitting on a loss. It

sounds like state capitalism, that's what the amendment are

touchy about. Are you gaining an unfair, state advantage here?

this point, all the Government owns our stock. In the same way that

individuals owners own our stock, but they're not directing our

company, or managing our business, and not interfering in the industry.

It left America, confused. The auto industry is the symbol of free

market values. But now, it does look quite stated,

stronger unions, Government ownership and taxpayers' subsidy.

To some in the Republican Party, this looks like crony capitalism

stootoorks a reward to the unions from the Democrats in a key state

ahead of an election. Let me make this point - the reason I remain

unfortunately with the way it was done, we lost more jobs, in the

recreational vehicle industry, for example in this state, that we're

threatened a GM and Chrysler. No- one offered to spend hundreds of

thousands of dollars per worker on them. How was I to tell the people

your job is not worth as much, because you're not as politically

connected. The rebirth is shrieth of hand? I don't know how you could

not make money, if someone handed you a comeck for tens of billions,

wiped out your debt, and excused you from making taxes in the future,

they ought to be a going concern. I cannot bring myself to say, that's

a trifle of brilliant public policy. We might have gotten to a same

outcome for quickly if a bankruptcy court had wiped out the creditors

and so foreth. The city of Toledo is in the key election battleground

state of Ohio. It's seen years of industrial decline but the bail out

of a nearby jeep plant, has, they hope, marked a new beginning. At

the Toledo Blade, one of the historic local newspapers, that

still matter in America, they know the bail out is about politics as

much as economics. What are readers thinking about the bail out?

think locally the voter would say the bail out worked, it saved jobs

in an industry that dominates our Marshall ket. In the political

battle, Toledo is on the front line. Vice-President here, several times,

President Obama a couple of times, their message is to defend the bail

out. Joe Biden is pitching what I talked about in terms of the bail

out, saved America, saved jobs. There are people who call this

though, crony capitalism, because it is the unions, the Democrats, it

is industrys that some people think ought not to exist any more? Yeah.

That's true. There is an argument out there. I say you know what, you

talk to a guy who a family of four to feed, used to work on a jeep

assembly line. Without the union co-operation here, Toledo would

have quickly become a waistline. What the Republicans have to do, is

persuade the American working class, that the bail out was a big mistake.

To do the job, they've chosen a man who has become iconic of working

class distain for the big state full stop. A regular blue colour

worker, not someone who graduated from harvord, a regular Jo. A man

who, in one short confrontation, defined the terms of the last

election? Your new tax plan is going to tax me more. I don't want

to punish your success, I want to make sure everybody behind you they

have a chance of success too. When you spread the wolt around. As Joe

the Plumber, Jo shot to national fame. Now he is running for

Congress in Toledo, his message the Government should get out of the

economy. A very federal Government that bailed him out, is the same

that brought the automobile toity knees, through over-regulation,so

they're thanking the same person that beat them. Let's get away, and

not let the Government pick the winners and losers, and decide who

will keep or lose their business. But they will argue they delivered

to the working man and woman on the production line? They can argue all

they want, it is still wrong. the Toledo Blade the presss are

getting busy, advertising revenue is up and America is recovering.

But it's taken a trillion dollar stimulus and rethink of the economy

that most Americans just can't get their heads around. The bail out

has revived the car industry here, spectacularly, but to make it

happen, they had to do things that seemed alien, subsidy, state

ownership and partnership with the unions. Americans like to tell

themselves these things are temporary, but it is in moment of

crisis new models are born. Across the wider economy, the US recovery

has a long way to go. The private sector on its own is still

struggling to generate growth, so what happens here could define the

landscape, not just in the economy, but in the election too. Steven

Rattner, man known as the car Czar, who was asked to push the bail out,

and here, we have Dr Pippa Malmgren, adviser to George Bush, who runs,

Principalis Asset Management. It is hard to deny the auto bail out

worked. GM biggest profit since 1999? It is easy to deny, because

the question is what would have happened if we hadn't had it, and

gone through the normal bankruptcy process, and would the process

happen moreicly. We declare a company bankrupt T goes to sale for

a dollar, and new investors come in rapidly n addition, there are

factors that led to foreign direct investment in the US motor industry,

like the China stake in again moteers, which was not dependent on

the bail out, but the China moving up the value added ladder. In the

film, the criticism was hundreds of dollars per worker were poured into

the GM, you were the architect of the bail out. But was it for a

political reason, in as much as the car workers, the Democratic

constituency, you needed to get them on side? Remember, the first

architect of the bail out was George Bush, he was the first

President to put money in general moteers and Chrysler, because he

saw, as President Obama saw, this was not a case of buying political

favours or pouring money into a charity, it was a case of market

failure, and the fact was had the Government not stepped in the

alternative with into the have somebody buying it for a dollar,

but shutting down, liquidateing and losing jobs. Early 2008, and 2009,

there simply was no capital interested in investing in the

industry, I know that because I was there.

Steven Rattner was hawking around the industries, looking for

purchasers, there was no-one will, the President of the Toledo Blade,

saying it would be a wasteland and thousands of workers out of work?

agree, it was the Bush administration, that made the

initial decisions. My view is part of the team was that was not

necessarily the correct decision at that time. Was there no industry

you would have saved in that way? have to say, I would have leaned

against bail out, even for Wall Street. I do think, we would have

seen the collapse more than institutions than Lehman Brothers,

and the economy, would have been able to manage that process. But

that view will never be tested, we won't know. I was saying, at that

time, that was the argument I made and I stand by that. The problem

now is we've created an environment, under both Democrats and

Republicans, where private businesses, believe, that if they

really get did wrong, they're going to be bailed out. Even after Lehman,

you stand by that view? Absolutely. What you've got now, is Steven

Rattner, a situation, where the market is distorted, is what you're

saying, pipa, and you're in a kind of permanent new deal Roosevelt

situation that will go on and change the nature of the US

economy? I actually respect flee disagree with that. First of all, I

think, while it can't be proveen, absent the bailouts, or rescues of

both the banks and auto sector, there would be no functioning USA

Today, the entire financial and economic system would have

collapsed in a panic. I can't proof it but I believe it. Secondly, what

President Bush and President Obama was to exception to reinforce the

rule N US, and parts of Europe, the Government does stay out of the

industrial sector. And I don't think anybody, who was involved

with the rescues, in 2008 and 2009, believes they were setting a

precedent, wanted to, or had a desire for the Government to be in

this business, for one second longer than necessary. But you say

that, but do you think there's a possibility if it has been judged

as a success, this situation will not be a temporary situation, and

there will be a fundamental shift, where the US economy becomes, it is

status, and interventionist? could go back further in history,

and we've had a significant sectors, continuously, since the 1970s, when

we have had major banks, go bust, when we had LTCM hit the wall.

Other incidents where the Government has stepped in. The

tradition, is we tend to prefer, going into bankruptcy procedures,

but Steveen is right, when an entire sector is subject to a loss

function, that's when politics steps in. Do you think then, Steven

Rattner, that state spending can actually be the highlighted as

being the key to America's recovery? Well, first of all, we

actually let many, many companies go bankrupt, after general moteers,

and Chrysler were he is queuesed, suppliers. Sorry to interrupt, that

led to resentment, because you were selective in what you were saving?

We saved the two companies, for which there was no private capital

available. The rest of the supply base, we allowed to go through

bankruptcy, and they emerged as Pippa, described. There was no

possibility for that to happen to general moteers, and Chrysler. You

said about Government spending, yes, the Government spending and all the

actions taken by President Bush and President Obama were instrumental

in preventing economic collapse. What is interesting, is there was

no tradition, as in Europe, of state intervention. But now the

American model is one that could help Europe, which is having a

harder time, getting out of the doldrums? Yeah, that's a much

bigger subject. And it is hard to draw an immediate parallel between

what you see in Europe today and the US. But what I will say is this

- the political today, in the United States, when it comes to the

question of bail out, the issue is not general moteers or the

automotive industry, the issue is bail out for Wall Street. And the

perception remains in the middle of the country, that Wall Street got a

whole lot of money than the automotive industry or economy

sector, that's the politicalcal issue that both Democrats and

Republicans have to fight over. Thank you both very much indeed.

Today, the Foreign Secretary, William Hague denied that British

businessman, Neil Heywood thought to be murdered in the Chinese city

of Hong Kong was in the employ of British Government. He was

responding to allegations that Mr Heywood was a MI6 agent. But his

death is a huge ramificationness Chinese politics, in particular on

the career of rising career of Bo Xilai. But, Mr Bo may have fallen

from Parliament for other reasons. We've just returned, where we found

a city state under the grip of Bo Xilai, a grip threadened not seen

A death on theantscy and the man who would be King. Chongqing and

notorious underworld is the setting for an extraordinary drama. The

city's leader in a power struggle, against the mighty party machine.

He was bold and am a birks and he used his time in charge here to

ruthlessly manoeuvre for a seat at China's top thaibl. Conning qing,

with over 30 million people, became Bo Xilai's personal city state.

Until Neil Heywood's death. Heywood came to China to seek his fortune.

He became the trusted adviser to a highly visible power couple. Bo's

aspiration to lead the country, an open secret. By his side, his wife,

the lawyer, dubbed China's Jackie Kennedy.

The King of police, was in the charmed circle, until he turned up

at the US Consulate begging for protection.

TRANSLATION: It's been a one-man dictatorship, one man ruling, one

voice, one message. The party and the media were completely

controlled. Heywood's body was found we believe in this hotel. The

chief of police had information that linked his death to Bo's wife.

Heywood's death was murder A business deal gone wrong. The

police chief wanted out, the case too toxic to handle. Party chief he

is in this suburb is said to be part of the loyal security network.

We understand this hotel was closely monitored by Bo's security

apparatus. Reports today suggest a wire taping

regime extended across the city even the premier was buged. Inside

the hotel, no-one is talking. REPORTER: I want to ask, did a

British man die here last year? don't know. They don't take

interviews. REPORTER: Did that At Chongqing's Great Hall of the

People, the carefully choreographed message is party rule careies on

ace normal but Beijing acted quickly.

GU was arrested and her husband perged. But Bo did not fall just

because of at murder case. There is a second explanation. China is

about to appoint a new generation of leaders. And Bo wanted in. He

was using his position, to challenge party orm doxy, in a way

not seen since 1989. TRANSLATION: Bo Xilai was openly

advocating a different line from Beijing on China's fewture. He had

an attitude on his own, and many of his people rallied to his cause,

they think he was a victim of a political struggle. The party's

battle lines are clear. Some want ever more market reforms. Others, a

return to Communist values. Bo Xilai was different, because he

took his struggle to the streets. Becoming the champion of the new

Chinese left. Even though Chongqing was hungryly Capitalist, Bo talked

like amowist. TRANSLATION: Bo helped the poor, he

built cheap housing. The charges against him are lies. Another tells

me Bo made Chongqing better for the common man and he was loved for it.

While this man says ordinary people are poor, whilst a few earn

millions. He likened Bo to chairman Mao and wants to bring his values

back. Bo Xilai relies on Mao scares many people. Four decades ago, many

were purgesed in his cultural revolution, the country was

consumed in violence and chaos. Jiang Wenyang was targeted as a

rightist, under Bo Xilai he suffered again, placed under

constant surveillance. TRANSLATION: The clock has been

turned back, it has been just like the cultural revolution. The talk

is of class struggle and percentages, Red Guards, red songs

and of a red country. Red is good, black is bad. Sing red, fight black.

Was Bo Xilai's great campaign slogan. The red referred to pride

in the country's leftist task. The black refd to one of the greatest

threats to its future - corruption. The mafia are locked up in this

prison outside the city. But I was told, Bo's Ennis are locked up here,

in large numbers. This lawyer represent one of the city's biggest

businessmen, he says shortly of taking on the case, he himself was

visited by police in Beijing. TRANSLATION: They drove me 2 hours

to conning qing, there I was put in a tiger chair, and my body and

hands were tied tightly with chains. They kept me like that for three

days and nights. They interrogateed me constantly. When I tried to fall

asleep, they shone bright light in my eyes. In the end I was imprise

beened for a year-and-a-half. Because he opposed Bo Xilai he was

personally targeted. TRANSLATION: TransBo Xilai's

campaigns from about winning support across China. As a lawyer,

I came across the dark side. I got in the way of his ideas and his

political career. Bo looked for enemies, so he waved the red banner

and accused his opponents of gangsters and part of the mafa. Bo

Xilai's campaigns against gangsterism, poll lateriseed this

city, but no-one expected the story to end with his own downfall. His

hopes of ascending to the highest office, in tatters.

Lower level corruption is an open secret in China. And Chongqing had

a pen negotation reputation, but Bo Xilai was from an elite class, far

above this world. In China, what's so shocking is not the crime, but

the accused were so close to the heart of power. China's Communist

rulers pride themselves on greyness and continuity. On the surface at

least, things are made to seem calm. But the seats on Beijing's pot luet

bureau are decided this Autumn. Many in China, think beyond the

alleged crime of political clash, Bo Xilai threatened a system that

valueed stability above all. Well that's all from Newsnight

tonight n a few days the Empire State Building will no longer be

the tallest building in New York City, as number one World Trade

Center, overtakes it just as the predecessor did in the 1970s, here

Hello there. Wet weather continues through the night, across northern

England and Midlands and much of Friday. To the south, we start off

with sunny spells but showers will develop. Brighter further north.

Southern Scotland, Northern Ireland and far north of northern England,

we should have sunny spells. Down across the Midlands, it is a drab

day, with outbreaks of rain and temperatures reaching double

figures. There will be hit and miss, with you all southern counties of

England, expect intense showers once more. Across much of Wales, it

will be cloudy, not much in the way of brightness and dull and damp in

eastern areas. There will be a chill in the air across Northern

Ireland but should be sunshine. The showers pushing south, it will

again contain snow in the hills and mountains. Dry day through the

central part of Scotland. Here is Later on in the day, we are

expecting more wet weather to push into the south-east, but overall a