07/07/2011 GMT with George Alagiah


07/07/2011

George Alagiah presents international news and intelligent analysis going live to the heart of the day's top global story. Plus up-to-the-minute global business news.


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More organisations distance themselves from the British tabloid

:00:11.:00:14.

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

:00:14.:00:18.

hacking scandal. Relatives of British soldiers killed in Iraq and

:00:18.:00:23.

Afghanistan are warned that their phones may have been compromised.

:00:23.:00:27.

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

:00:27.:00:37.
:00:37.:00:46.

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

:00:46.:00:50.

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

:00:50.:00:53.

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

:00:53.:00:58.

rates. A passionate protest. Chilean

:00:58.:01:05.

students demonstrate against student fees with their lips.

:01:05.:01:10.

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

:01:10.:01:13.

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

:01:13.:01:17.

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

:01:17.:01:21.

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

:01:21.:01:25.

bereaved relatives were found in files of private detectives who

:01:25.:01:29.

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

:01:29.:01:33.

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

:01:33.:01:38.

horrified if there were truth to the claims.

:01:38.:01:41.

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

:01:41.:01:46.

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

:01:46.:01:49.

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

:01:49.:01:51.

of those families, leaving relatives to establish whether

:01:51.:01:59.

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

:01:59.:02:05.

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

:02:06.:02:12.

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

:02:12.:02:16.

trampled on the graves of those soldiers.

:02:16.:02:19.

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

:02:19.:02:25.

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

:02:25.:02:29.

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

:02:29.:02:32.

to get ahead of ourselves because the police investigation is ongoing

:02:32.:02:37.

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

:02:37.:02:42.

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

:02:42.:02:44.

International said it would be appalled and horrified if there

:02:44.:02:51.

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

:02:51.:02:54.

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

:02:54.:02:58.

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

:02:58.:03:02.

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

:03:02.:03:07.

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

:03:07.:03:12.

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

:03:13.:03:16.

hacking allegations reinforce the need for its public inquiry to be

:03:16.:03:21.

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

:03:21.:03:26.

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

:03:26.:03:30.

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

:03:30.:03:33.

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

:03:33.:03:37.

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

:03:37.:03:42.

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

:03:42.:03:46.

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

:03:46.:03:50.

International continues to grow, as more advertisers consider their

:03:50.:03:54.

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

:03:54.:03:57.

advertising with the News of the World.

:03:57.:04:03.

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

:04:03.:04:08.

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

:04:08.:04:12.

looking at the allegations coming through now, how far journalists

:04:12.:04:17.

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

:04:17.:04:22.

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

:04:22.:04:27.

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

:04:27.:04:31.

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

:04:31.:04:35.

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

:04:35.:04:42.

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

:04:42.:04:48.

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

:04:48.:04:53.

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

:04:53.:04:56.

privacy, if it came down to corporate espionage and a

:04:56.:04:59.

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

:04:59.:05:05.

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

:05:05.:05:10.

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

:05:10.:05:15.

that sometimes, on very rare occasions, a journalist or

:05:15.:05:18.

journalistic organisation could possibly be entitled to do these

:05:18.:05:23.

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

:05:23.:05:27.

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

:05:27.:05:32.

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

:05:32.:05:36.

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

:05:36.:05:43.

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

:05:43.:05:48.

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

:05:48.:05:53.

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

:05:53.:05:58.

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

:05:58.:06:02.

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

:06:02.:06:08.

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

:06:08.:06:12.

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

:06:12.:06:16.

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

:06:16.:06:20.

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

:06:20.:06:24.

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

:06:24.:06:27.

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

:06:27.:06:36.

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

:06:36.:06:42.

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

:06:42.:06:45.

people reading stories about celebrities would have been

:06:45.:06:50.

incredibly comfortable with the idea that such things are being

:06:50.:06:56.

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

:06:56.:07:00.

we got this information by listening to their phone messages.

:07:00.:07:03.

But it is one thing with celebrities but another thing

:07:03.:07:06.

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

:07:06.:07:14.

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

:07:14.:07:17.

other stories making headlines around the world. In Malaysia,

:07:17.:07:20.

police have taken control of a kindergarten where around 30

:07:20.:07:25.

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

:07:25.:07:30.

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

:07:30.:07:34.

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

:07:34.:07:38.

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

:07:38.:07:48.
:07:48.:07:48.

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

:07:48.:07:58.
:07:58.:07:59.

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

:07:59.:08:04.

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

:08:04.:08:08.

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

:08:08.:08:14.

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

:08:14.:08:18.

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

:08:18.:08:22.

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

:08:22.:08:27.

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

:08:27.:08:32.

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

:08:32.:08:37.

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

:08:37.:08:43.

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

:08:43.:08:48.

no student. Have police given any comment or further information

:08:48.:08:56.

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

:08:56.:09:01.

information about him but there are report suggesting he was perhaps

:09:01.:09:05.

mentally unstable. The same thing happened with the incident last

:09:05.:09:14.

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

:09:14.:09:18.

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

:09:18.:09:27.

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

:09:27.:09:31.

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

:09:31.:09:36.

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

:09:36.:09:41.

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

:09:41.:09:48.

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

:09:48.:09:57.

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

:09:57.:10:02.

leave their homes. Dutch police say people are trapped

:10:02.:10:07.

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

:10:07.:10:10.

spokesman said the emergency services are at the stadium where

:10:10.:10:15.

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

:10:15.:10:19.

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

:10:19.:10:24.

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

:10:24.:10:28.

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

:10:28.:10:38.
:10:38.:10:41.

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

:10:41.:10:45.

Calls have been dismissed for the resignation of Dominique Strauss-

:10:45.:10:50.

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

:10:50.:10:54.

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

:10:54.:10:58.

place. Still to come, we will find out if

:10:58.:11:01.

the European Central Bank is going to raise interest rates.

:11:01.:11:05.

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

:11:06.:11:15.

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

:11:15.:11:19.

heard of Japanese scientists finding vast deposits of rare earth

:11:19.:11:25.

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

:11:25.:11:30.

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

:11:30.:11:34.

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

:11:34.:11:44.

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

:11:44.:11:47.

America, an ailing industry is being revived.

:11:47.:11:52.

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

:11:52.:11:58.

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

:11:58.:12:03.

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

:12:03.:12:08.

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

:12:08.:12:13.

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

:12:13.:12:17.

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

:12:17.:12:22.

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

:12:22.:12:32.

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

:12:32.:12:38.

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

:12:38.:12:43.

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

:12:43.:12:46.

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

:12:46.:12:54.

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

:12:55.:12:58.

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

:12:58.:13:04.

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

:13:04.:13:09.

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

:13:09.:13:18.

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

:13:18.:13:23.

much more efficiently with rare earth magnets and hybrid cars are

:13:23.:13:28.

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

:13:28.:13:32.

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

:13:32.:13:37.

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

:13:37.:13:41.

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

:13:41.:13:46.

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

:13:46.:13:52.

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

:13:52.:13:56.

technology changes the world, demand for different natural

:13:56.:13:58.

resources will become more important and the competition for

:13:58.:14:08.
:14:08.:14:08.

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

:14:08.:14:18.
:14:18.:14:25.

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

:14:25.:14:29.

headline today, there's been widespread condemnation of a

:14:29.:14:33.

British tabloid newspaper after the latest allegations that relatives

:14:33.:14:41.

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

:14:41.:14:49.

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

:14:50.:14:53.

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

:14:53.:15:00.

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

:15:00.:15:04.

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

:15:04.:15:08.

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

:15:08.:15:15.

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

:15:15.:15:21.

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

:15:21.:15:26.

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

:15:26.:15:33.

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

:15:33.:15:39.

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

:15:39.:15:43.

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

:15:43.:15:47.

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

:15:47.:15:54.

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

:15:54.:15:58.

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

:15:58.:16:07.

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

:16:07.:16:09.

talking to our Business Correspondent who has been

:16:09.:16:12.

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

:16:12.:16:18.

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

:16:18.:16:22.

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

:16:22.:16:26.

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

:16:26.:16:31.

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

:16:31.:16:35.

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

:16:35.:16:40.

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

:16:40.:16:45.

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

:16:45.:16:49.

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

:16:49.:16:53.

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

:16:53.:16:58.

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

:16:58.:17:04.

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

:17:04.:17:08.

conference after the results. Though he will use that very

:17:08.:17:12.

careful language that he has developed, including the phrase

:17:12.:17:16.

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

:17:16.:17:20.

which is monitoring price developments. If he uses that,

:17:20.:17:24.

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

:17:24.:17:30.

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

:17:30.:17:35.

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

:17:35.:17:40.

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

:17:40.:17:44.

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

:17:44.:17:49.

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

:17:49.:17:59.
:17:59.:18:01.

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

:18:01.:18:03.

man wanted in connection with the attempted assassination of King

:18:03.:18:06.

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

:18:06.:18:09.

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

:18:09.:18:15.

suspected Basque separatist. He's also wanted for allegedly

:18:15.:18:17.

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

:18:17.:18:21.

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

:18:21.:18:29.

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

:18:29.:18:34.

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

:18:34.:18:39.

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

:18:39.:18:42.

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

:18:42.:18:47.

European arrest warrant obtained by the Spanish authorities. The BBC

:18:47.:18:51.

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

:18:51.:18:56.

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

:18:56.:19:01.

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

:19:01.:19:06.

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

:19:06.:19:11.

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

:19:11.:19:14.

Carlos back in 1997 when he attended the opening of the

:19:15.:19:22.

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

:19:22.:19:25.

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

:19:25.:19:29.

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

:19:29.:19:32.

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

:19:32.:19:40.

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

:19:40.:19:43.

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

:19:43.:19:47.

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

:19:47.:19:52.

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

:19:52.:19:56.

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

:19:56.:20:02.

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

:20:02.:20:06.

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

:20:06.:20:12.

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

:20:12.:20:18.

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

:20:18.:20:22.

devices have included exploding flowerpots and they have hidden

:20:22.:20:26.

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

:20:26.:20:30.

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

:20:30.:20:35.

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

:20:35.:20:39.

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

:20:39.:20:42.

have been taken into custody in Spain and elsewhere in connection

:20:42.:20:47.

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

:20:47.:20:51.

was ceasing its campaign of violence but there are still some

:20:51.:20:57.

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

:20:57.:21:04.

bringing us up to date. The Archbishop Desmond Tutu is

:21:04.:21:14.
:21:14.:21:16.

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

:21:16.:21:20.

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

:21:20.:21:23.

Gadaffi regime, but within the broad opposition alliance there are

:21:23.:21:28.

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

:21:28.:21:36.

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

:21:36.:21:42.

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

:21:42.:21:45.

Libya between the rebels and Colonel Gaddafi East forces. A

:21:45.:21:50.

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

:21:50.:21:54.

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

:21:54.:22:00.

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

:22:00.:22:05.

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

:22:05.:22:09.

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

:22:09.:22:13.

decades the Berbers have not been allowed to use their unique

:22:13.:22:18.

language and alphabet. Colonel Gaddafi's Arab nationalist banned

:22:18.:22:24.

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

:22:24.:22:30.

mountains and they are multilingual. In this demonstrations there are

:22:30.:22:38.

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

:22:38.:22:46.

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

:22:46.:22:50.

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

:22:50.:22:55.

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

:22:55.:22:58.

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

:22:58.:23:02.

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

:23:02.:23:09.

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

:23:09.:23:13.

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

:23:13.:23:19.

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

:23:19.:23:23.

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

:23:23.:23:27.

they call themselves say Colonel Gaddafi encourage those tensions in

:23:27.:23:31.

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

:23:31.:23:36.

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

:23:36.:23:40.

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

:23:40.:23:46.

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

:23:46.:23:49.

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

:23:49.:23:54.

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

:23:54.:24:04.
:24:04.:24:05.

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

:24:05.:24:13.

attention to a campaign cause. Students in Chile have exchanged

:24:13.:24:15.

violent protests against government education policies by locking lips

:24:15.:24:18.

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

:24:18.:24:21.

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

:24:21.:24:24.

lot more love. Passionate for the cause of their

:24:24.:24:29.

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

:24:29.:24:35.

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

:24:35.:24:42.

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

:24:42.:24:45.

say the education system needs urgent resuscitation. They wanted

:24:45.:24:49.

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

:24:49.:24:56.

fighting. Their approach has breathed new life into how students

:24:56.:25:01.

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

:25:01.:25:05.

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

:25:05.:25:09.

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

:25:09.:25:16.

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

:25:16.:25:21.

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

:25:21.:25:24.

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

:25:24.:25:30.

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

:25:30.:25:34.

students throwing bottles and waving banners. And police doing

:25:34.:25:43.

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

:25:43.:25:49.

Chilean President Sebastian Pinera's response on television was

:25:49.:25:53.

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

:25:53.:25:57.

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

:25:57.:26:03.

But he rejected student demands to nationalise private colleges. Were

:26:03.:26:08.

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

:26:08.:26:13.

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

:26:13.:26:22.

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

:26:22.:26:28.

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

:26:28.:26:33.

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

:26:34.:26:36.

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

:26:37.:26:40.

International news and intelligent analysis going live to the heart of the day's top global story. George Alagiah shares his experience as one of the BBC's most successful foreign correspondents to communicate why world stories matter to a UK and global audience.

Featuring exclusive reports from BBC World News correspondents based around the world, plus up-to-the-minute global business news.


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