07/07/2011 GMT with George Alagiah

More organisations distance themselves from the British tabloid

News of the World as new allegations surface in the phone-

hacking scandal. Relatives of British soldiers killed in Iraq and

Afghanistan are warned that their phones may have been compromised.

have to say, if these actions are proved to have been verified, I am

appalled. I find it quite Welcome to GMT. Also in the

programme, borrowing money in the eurozone is set to become more

expensive, as the European Central Bank is expected to raise interest

rates. A passionate protest. Chilean

students demonstrate against student fees with their lips.

It is 7:30am in Washington, early afternoon in Libya and 12:30pm here

in London, where some of the families of British soldiers who

have died in Iraq and Afghanistan have been shot that their phones

may have been hacked into. Reports say that personal details of

bereaved relatives were found in files of private detectives who

intercepted voice mail messages for the News of the World. News

International, which owns the paper, says it would be appalled and

horrified if there were truth to the claims.

The News of the World prides itself on supporting bridges soldiers and

the families of those who have died on the front line. Now it is

alleged to have been responsible for hacking into the phones of some

of those families, leaving relatives to establish whether

their phone numbers were found in the files of Glenn Mulcaire.

family is really hurt and disturbed. We don't want a waiting game. We

are very upset and we want to know why they have done this. They have

trampled on the graves of those soldiers.

The Royal British Legion has dropped the News of the World as

his royal campaigning partner. The Chief of the Defence Staff said if

the allegations were proved, he would be appalled. We do not want

to get ahead of ourselves because the police investigation is ongoing

and we need to see the results. But if these actions are proved to have

been verified, I am appalled. I find it quite disgusting. News

International said it would be appalled and horrified if there

were any truth and the allegations. It said in a statement, News

International's record as a friend of the armed services and of a

servicemen and women is impeccable. They have campaigned in support of

the military over many years and will continue to do so. Political

pressure is growing. The takeover of BSkyB is being debated in the

House of Lords. The Labour leader, Ed Miliband, says the latest

hacking allegations reinforce the need for its public inquiry to be

set up quickly. I think it is very important that this is a judge-led

inquiry. It does have the power to compel witnesses and I have to say

to the Prime Minister, I think the country will be expecting more of

him this time. He is not engaging in the leadership that the country

needs on this issue. He seems two steps behind public opinion, where

public opinion is. He does not seem to be reacting with the necessary

speed on what people want to see. And the commercial pressure on News

International continues to grow, as more advertisers consider their

position. NPower and Sainsbury's are the latest to suspend their

advertising with the News of the World.

Let's get more on this ongoing issue. I am joined by Padraig Reidy,

the news editor of Index on censorship. Are you surprised, just

looking at the allegations coming through now, how far journalists

have gone to get the commission they wanted to sell their papers?

think we are all very, very surprised. The revelations of the

past week have made this story so much bigger. We have talked about

celebrities in the past and rich and powerful people, and now we are

looking at every day people, people who were victims of crime, people

killed in wars and their families. Victims of 7/7. The scale of this

is horrifying. How far do you think a journalist should be allowed to

go, because when we look at the issues of freedom and the right to

privacy, if it came down to corporate espionage and a

journalist was looking into that, you would need to go into phone

records and dig deeper. Where do you draw the line? We have been

having these conversations all week. Where is the line? The feeling is

that sometimes, on very rare occasions, a journalist or

journalistic organisation could possibly be entitled to do these

things. So could possibly be entitled to break the law? Yes. If

you have to prove that you have a very strong public interest. So I

might have a very senior politician who might be involved in,

hypothetically, arms dealings. If I feel I have to go that little bit

further up to get my piece approved, then perhaps it is right for me to

maybe try and get into his phone messages or go through his e-mails.

And you can see there is a very strong public interest in

uncovering corruption or espionage. The problem with what the News of

the World appears to have been doing is that in none of these

cases is there a public interest. There is no reason as to why you

would listen to the phone messages of a murdered girl or those of

families of 7/7 bombing victims. think most of the viewers would

agree but the point of that when it comes to murder victims, missing

girls, often, many of these newspapers are facing the challenge

of meeting we diplomat demand when they won celebrity news, which

again could be argued to not be in the public interest. -- meeting the

readers' demand. But why would that be allowed? I don't think most

people reading stories about celebrities would have been

incredibly comfortable with the idea that such things are being

done, listening to their phone messages, etc. We are never told,

we got this information by listening to their phone messages.

But it is one thing with celebrities but another thing

entirely in most people's eyes when we are dealing with victims of

crime. Thank you very much. We can take a look at some of the

other stories making headlines around the world. In Malaysia,

police have taken control of a kindergarten where around 30

children and teachers are being held hostage. A man, according to

some reports, was armed and barged into the nursery school in at Johor

state in the south of the country. Joining us from the Malaysian

capital, Kuala Lumpur, is our correspondent. When did this ordeal

begin? The man had entered the school at about 9am local time,

just as the school day was starting. It continued for six hours. The

police sealed off the area and they managed to subdue the guy after

they went in and managed to free the children and their teachers as

well. The children were all under the age of five years old. They are

unharmed but police say they have brought them to hospital just in

case, for a check-up. This follows a similar incident that happened

last year, where a man had entered a kindergarten and attacked three

children with a hammer, and after this, schools were told to be on

high alert and make sure they come up with risk plans to when Sean no

student is ever exposed to this kind of harm again. -- to make sure

no student. Have police given any comment or further information

about the man suspected of carrying this out? We have no more

information about him but there are report suggesting he was perhaps

mentally unstable. The same thing happened with the incident last

year as well. So far, we have no idea of where this guy has come

from or what his purpose was in the first place and what his demands

were. That is not clear at this point in time. Thank you.

New details are emerging about how the Horn of Africa's devastating

drought is forcing migration from Somalia to Ethiopia. The World Food

Programme says more than 110,000 people have arrived at remote camps

at Dolo Ado in south-east Ethiopia. A further 1,600 are crossing the

border every day but others are either too weak or too poor to

leave their homes. Dutch police say people are trapped

under the rubble after rig collapse in the Netherlands. A police

spokesman said the emergency services are at the stadium where

construction work was taking place. A court in Italy has sentenced nine

German men, now in their eighties and nineties, to life in prison for

killing hundreds of civilians during World War II. A court in the

city of Rome have found that the defendants were guilty of murdering

more than 140 people in the Modena region in 1944 of -- in 1944.

Calls have been dismissed for the resignation of Dominique Strauss-

Kahn. The district attorney is said to have leaked damning information

about the chambermaid and ask for a special prosecutor to be put in his

place. Still to come, we will find out if

the European Central Bank is going to raise interest rates.

Also, we're on the front line with the Libyan rebel alliance to look

at its March on Tripoli. Earlier this week, you may have

heard of Japanese scientists finding vast deposits of rare earth

minerals in the Pacific Ocean. Have you ever heard of scandium?

Disproves him? These rare elements are actually playing a vital part

in modern lives. They are in everything from tablet computers to

wind turbines. 90% of rare earth comes from China but over in

America, an ailing industry is being revived.

In a dusty old mine, high up in California's Mojave desert, America

is digging to secure its future. Been cut from deep underground is a

substance found in very few places. -- being cut. In these rocks of

rare earth elements, essential hi- tech building blocks, and there's a

shortage. We have done enough exploration to know it will last at

least three years. This mine closed 10 years ago but with prices

jumping tenfold in the year, it is by a boy again in a market supplied

by just one gigantic prayer. -- it is viable again. China are starting

to consume more of their own elements and letting less of those

to be exported. So we are looking at the shortage, which is why his

mind and a couple of others are trying to get up and running as

fast as possible. -- and this mind. This is what they are digging for.

This grey powder is a rare earth element and each of these sacks is

worth well over �100,000. From here, it gets turned into a metal and

that is when it starts getting useful for us was up our television

sets need a red earth element for a full picture. Wind turbines work

much more efficiently with rare earth magnets and hybrid cars are

full of them, from the batteries to the fuel. Green technology,

including solar power, depends on these elements. Fighter jets need

them as well, and that affects American security. We should be

worried when any country completely dominates the supply of any raw-

material. I do not think China is at fault. But they are using the

political leverage that is from the corner of the market they have.

technology changes the world, demand for different natural

resources will become more important and the competition for

them could shape global politics. We want to hear what you think. Get

in touch with GMT through our You are watching GMT. Our main

headline today, there's been widespread condemnation of a

British tabloid newspaper after the latest allegations that relatives

of British soldiers killed in First though let's get all the

business news. Why is the rate rise expected? It is the all-important

comments, the press conference that comes after each month's decision.

The head of the European Bank used to the word stronger vigilance, so

everyone expecting that. We do know that despite all of these

peripheral worries and debt worries with the likes of Ireland, Greece,

Spain and Portugal, the ECB has been quite focused and focused on

fighting inflation. At the moment it is 2.7 %, above the 2% target,

but some people will say it is nowhere near what we have in the UK.

The Bank of England have kept rates on hold. They have risen by one

quarter of a %, as we expect. But what the ECB has tried to do is

focus, despite the peripheral worries, on the core of Europe,

which is Germany, Europe's largest economy and the powerhouse of

Europe, as well as the economy is overheating, that is something they

are worried about. Here in the Bank of England, we have kept rates at

half of 1% for 28 months. Some of phenomenal number. Earlier I was

talking to our Business Correspondent who has been

following this from one of the trading floors at the Royal Bank of

Scotland in London. I asked him firstly what the rate rise we have

seen Nina for Greece, Ireland, Spain and Portugal, and what should

we be listening to from the head of BCB in this decision press

conference in about 40 minutes' time? That would make life

extremely difficult, and there is a lot of concern about that, but the

ECB is fighting on two fronts. They are equally worried about Greece

and the fact they are sitting on 20 % of their loans. There have been a

line -- there has been a line drawn in the sand, so it is a big issue.

But the problem is more about solvency than the rates the Bank

charge. It is all in the mix. It makes for difficult decisions for

the banks and we will see some tough questions at the news

conference after the results. Though he will use that very

careful language that he has developed, including the phrase

strong of vigilance. People will be watching out for in other phrase

which is monitoring price developments. If he uses that,

people think he may put the rates up again. But circumstances in

Europe may not lead him. As you know, it is all to do with the

wording. Many expect we might see another rise in rates but maybe not

until October, possibly December. The instant reaction on the markets

work that they were like in the decision. The European markets are

all roughly half of a % higher. I'll have a lot more on this later

on and through the rest of the day. Police in Britain have arrested a

man wanted in connection with the attempted assassination of King

Juan Carlos of Spain 14 years ago. The suspect, Eneko Gogeaskoetxea

Arronategui, was detained in the city of Cambridge and is a

suspected Basque separatist. He's also wanted for allegedly

participating in an armed gang, terrorism, possession of weapons,

theft and forgery. Let's cross live to the court in central London

where the arrested man's due to appear: I had trouble with his name,

and I won't ask you to pronounce it. Do tell us what has happened today.

This man was arrested in Cambridge this morning before 9am, asking on

intelligence received by the police. They were following up on a

European arrest warrant obtained by the Spanish authorities. The BBC

understand that the police were tipped off by someone who saw this

man, Arronategui, in a gym in Cambridge and reported him to the

police. He had been wanted since 2001 when he went on the run after

the police raided a suspected ETA a bomb factory in the south-west of

France. He is believed to be part of a plot to blow up King Juan

Carlos back in 1997 when he attended the opening of the

Guggenheim Museum in Bill Basle. -- Bill bow. Arronategui it will be

appearing just after 2pm. It is the start of an extradition progress

which will not take as long as it used to -- process. We now have

European arrest warrants in place which speed up the process and they

work both ways. Movement is now much quicker than it used to be.

And if it all goes according to what the authorities hope it means,

this man could be extradited as soon as a fortnight from now.

has it taken so long for him to be found and arrested? He has been 14

years. He has been on the run for a good long time. The Spanish

authorities a couple of years ago launched an enormous crack down on

ETA or, and since 1968 when the campaign of violence started, there

have been more than 800 deaths and they have targeted politicians,

judges, politicians -- and all sorts of people. The explosive

devices have included exploding flowerpots and they have hidden

bombs in saddlebags on bicycles and even in the headrests of motor

vehicles. It has been a lethal campaign costing more than 800

lives. This man is suspected of being a key bomb maker in ETA.

Since the campaign was launched, dozens if not hundreds of suspects

have been taken into custody in Spain and elsewhere in connection

with that campaign of violence. It was last year that ETA has said it

was ceasing its campaign of violence but there are still some

suspects on the run, and this man is one of them. Thank you for

bringing us up to date. The Archbishop Desmond Tutu is

The small settlement in Libya is a small step towards the main road to

the capital which the rebels have taken over. They want to topple the

Gadaffi regime, but within the broad opposition alliance there are

ethnic and tribal factors at play. Our World Affairs Correspondent has

this report from the new front line for the rebel alliance.

A back road out of Tripoli. And the new de facto border in western

Libya between the rebels and Colonel Gaddafi East forces. A

small but steady stream of vehicles arrive from the capital, 50 or 60

per day. People are joining their families in the mountains, the

stronghold of the revels in this part of the country. The people of

the mountains are mainly Berbers, the minority in this Arab land.

Their children are now being taught what their identity means. For

decades the Berbers have not been allowed to use their unique

language and alphabet. Colonel Gaddafi's Arab nationalist banned

classes like this. Now there are speeches and slogans in the

mountains and they are multilingual. In this demonstrations there are

many Berbers and Arabs. There is no tension or threat or division. We

are seeking to be one of Libyan country. -- won at Libyan country.

But there are places where ethnic bought tribal tensions are clear.

The village of Mucha Show, home of their tribe. Many places in the

mountains emptied as civilians fled the fight with Colonel Gaddafi's

forces. Here, by contrast, there was a conflict between different

tribes in the mountains. Doors have been forced, houses looted. The

rebels sake that the tripe sided with Colonel Gadaffi. -- the rebels

say that the tribe sided. What is this -- this is an indication of

the latent tensions in many parts of Libya. The revolutionaries as

they call themselves say Colonel Gaddafi encourage those tensions in

order to divide and rule the country. But if the revolution

succeeds, it is certainly the case that there will be a lot of work of

reconciliation to be done. Back at the school, the children's -- the

children sing their new national anthem. In fact it is the original

and some from the days of the Libyan monarchy, before Colonel

Gaddafi came to power. -- the Libyan -- the original anthem. They

are looking to the past as well as Here is a different way of arousing

attention to a campaign cause. Students in Chile have exchanged

violent protests against government education policies by locking lips

and kissing. As David Campanale reports, students have taken to the

streets to show they want a lot less violent confrontation and a

lot more love. Passionate for the cause of their

education. Thousands of students in the capital of chilly, Santiago,

have exchanged sit-ins for love-ins, to draw attention to education

standards and rising costs. These kissing protests its -- protesters

say the education system needs urgent resuscitation. They wanted

to be accessible for later generations. That is why we are

fighting. Their approach has breathed new life into how students

are thought to protest. What is happening is that young people are

learning and realising that the education here in chilly is bad.

And I think it is a beautiful way to protest and it is better to see

these young people protesting in such a simple way with a kiss.

will the power of love be enough to shift government policy? Protests

by high school and university students have gone on for some time

now. Just contrast with these angry scenes earlier this week, which saw

students throwing bottles and waving banners. And police doing

their thing of firing tear-gas and water cannon to disperse them.

Chilean President Sebastian Pinera's response on television was

the promise of a $4 billion fund that would pay more grants and make

student loans cheaper. He also said admissions would be made fairer.

But he rejected student demands to nationalise private colleges. Were

they getting up close and personal on the streets for staging tongue-

in-cheek kisses, he said that such a policy would only damage the

quality and freedom of Chilean I wonder if the kissing will catch

on. We all need a bit of love every now and again. Before we go, lots

more on the British phone hacking scandal on the BBC website. There

you'll find a section on the key questions following the fallout and