28/01/2013 Newsnight


Will most of us retire poor? Plus, why Iceland didn't pay us back for its broke banks, the capture of Timbuktu, and life in the Korean DMZ. With Kirsty Wark.

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How are you going to pay for your old age? Final salary pension also


soon be history, savings are getting little return, if you are


16 or 60, do you have a plan? Is it to stay at your desk working


until you die? After today's news that companies are kiboshing final


salary pensions at a record rate, where should people save?


The old pension system worked because the value of shares


generally went up, and Government bonds generally delivered a decent


income. Now, that's no longer true. We are joined by four people who


might have some idea how to salvage our old age.


Also tonight, remember this? What happened in Iceland is completely


unacceptable, I have been in touch with their Prime Minister, I have


said this is effectively illegal. Today Britain lost its claim to get


�2.2 billion, given by us to depositors in Iceland's bust banks.


I will ask their Finance Minister how we can ever trust her.


Mali and French forces retake Timbuktu after a year in Islamist


hands. Apparently not in time to stop them burning a library housing


thousands of ancient manuscripts. Will the French find winning the


peace harder than capturing desert towns.


Welcome to Korea's demilitarised zone, the most dangerous border in


the world, and a nice spot for tourism and children's English


Good evening, who will look after us when we are old, how should we


look after ourselves? Last year 31% of called defined pension benefits


pension schemes, where the payout is related to your salary, closed,


according to the National Association of Pension Funds today.


With interest rates low, returns from bonds very low and the stock


market below its peak, most of us are struggling to provide provision.


Whether you are middle-aged and wondering about retiring, or young


and not worried about saving, is retirement slipping from our grasp.


In the golden age of the pension, this is how it used to work, you


plodded along, saving some of your wages, and putting them into stocks


and shares, that grew in value, like this, the graph of the FTSE.


There were ups and down, but never violent. Then things went violently


well, and then they went violently haywire. In the process, a lot of


people fell out of the system. And now, the golden age is gone.


Students bracing themselves for the transition to work will find


pension funds largely closed to them. Just 13% still open to new


joiners. These were figures released today. On today's figure,


a young person leaving university this year, and joining a private


company, has, maybe, a one in ten chance of joining that company's


pension scheme, and the reasons for that are economic uncertainty, and


the certainty of ageing. So this generation will have to


save on their own. Challenges for them, challenging for the whole


future structure of capitalism. an environment where we are living


long e any Government has to deal with that. Occupational pension


schemes are in decline as well. The things that we are all faced with,


ultimately we have to look at waiting longer for state benefits.


We have to look at possibly to working longer, or alternatively we


have to look at saving earlier. This month, the Government


signalled the introduction of a flat rate state pension, worth


�7,488 a year. To get anything above that, in the future, you will


have to save a lot. Just to earn the median wage of �21,000 a year,


at the age of 65, your savings would have to be worth �4 10,000,


to earn �42,000, the average wage of a train driver, would you need


more than a million. The earlier you save the better you get from


compound growth over many years, it is easy to focus on what you have


to wave save, that can be significant. The sooner you save


the better it will be in the long- term. What are you supposed to


save? Real wages have fallen in value, and where are you supposed


to put your savings? Once that was a no-brainer, the answer was shares,


or equities, as they are called. But not for this generation.


used to be very much the case that when you looked at the UK equity


market, you could think of it as something we held stake in via our


pensions. The pensions held huge amounts of blue chip equities, now


they don't, they hold overseas equities, hedge funds, and in the


main, Government bonds. The UK equity market is no longer really


owned by the UK population, that's a big shift.


For people in their 40s and 50s, there is a pension crisis of a


different type. Today's survey of pension funds found one third of


funds have closed contributions for existing members. Plus, the Bank of


England's decision to print money has lowered the interest payments


on Government bonds, to below inflation. So savers are actually


losing money by lending it to the Treasury. In the golden era of


company pension, the majority of a pension fund was invested in


company shares, and the rest in Government bonds, here and abroad.


As late as 2002, 61% of UK pensions were in shares, a third in bonds,


and everything else, including in cash, came to 6%. Now that has


pension money was in the stock market, 37% was in bonds, but 18%


is now in assets deemed to have a better chance of avoiding losses,


or wipouts. That is a mixture of gold, derivatives, based on


commodities, hedge funds, and property. If you have a final


salary pension, you generally have no problems at all, you have a


guaranteed pension that will rise with inflation until you die. This


is a wonderful thing. If you don't have a final salary pension you


bond markets will go and interest rates will go, and what annuity


rates will be. You have no choice but to keep saving and saving and


The old pension system worked because the value of shares


generally went up, and Government bonds generally delivered a decent


income. Now, that's no longer true, and it poses big problems, not just


for the pension system, but for the very shape of capitalism theself.


The caench is forcing people to spend -- the credit crunch is


forcing people to spend less and this at some point will have to


change. Some feel the collapse of permanent dent in our willingness


to spend. When you have doubt about your future income and how


on your consumption in your late 40s, early 50s, 60s, that is


Uncertainty is a great enemy of economic growth of every kind.


it comes to pension, the economics of uncertainty are what define the


future. Here we have Otto Thoresen, Adrian


Hartshorn, the partner at Mercer director general of Saga, and


former Government adviser on Financial Times. We will all shoot


salary pension of the average wage, �400,000 away in your working life.


For most people that seems impossible now? To start with it is


important to understand this other factor of the fact we are living


longer. Exactly. That is a really important positive aspect of what


is happening here. When Lord Turner did his review years ago, he said


the answer was partly working longer, partly saving more and


partly the state pension and what have to look at that at a package


are in your 40s or 50s, saving on should blow it, what is the point


of living to a poor old age? think if you look at it from the


other perspective, I have a 21- year-old son, I'm close to this.


The fact is, if you are 20 now p and you are looking out -- and you


are looking out 40, 50 years, we shouldn't be depressed over markets


to have a belief that with economic growth, and with markets going up,


that returns will come through again. I believe with economic


growth forecast in the next decade, Gillian Tett, if you are between


20-30 you will have to save an awful lot to give you any kind of


return when you are 65, 70? If you retire at 65 any more. The good


news is we are living longer. That is good. The other piece of good


the pensions crisis has been swept under the carpet, because it is a


to talk about it. Also, you know, these very, very low bond returns,


a real problem, the Government shoves all this money into the


economy, depresses interest rates, and so, in a sense, screws people


over both ways? I think what the Bank of England hasn't understood


is just how much our pensions system is underpinned by long-term


Government bond yields. By depressing long-term Government


bond yields, the Government has basically devalued everybody's


pensions and made it much more pensions. I think we need to get


away, in way, from the idea that we need re-think our whole


lifestyle. There is a whole new...We Can't guarantee new huge


growth in the next ten years or bond yields being better? It is not


just about saving. This is about our lives. Pensions are just one


aspect of how we are going to live in later life. You can have part-


time work. It is so complicated. People don't understand. Is part of


the problem branding. I can remember when you are 18 or 20 you


hear about the pensions and you challenges as a society we need to


term. We have seen the changes in just about the Government saying


they will increase the state proportion of people drawing the


it is more people drawing the state pension? And fewer and fewer people


paying taxs to provide those. Before we talk about solutions,


back to the insurers, you charge the development of fees over the


products that we sell into the work place now are historically low.


We're talking about 50 basis points a very charge. I'm with Ros on this,


about managing your debt, it is going to develop your life, and it


money from the industry? I think we need to get away from the industry


that the industry is going to solve the problem for us. We have to get


real about pensions, we haven't done. There is no magic money tree


that pensions will be daing -- to be more focus on financial


literacy. I'm strongly in favour of teaching financial literacy, along


with maths at school, right from the get-go. One of the problems


about this, which people don't often talk about. As people live


for a longer time, it is very tempt to go say everyone should simply


work a lot longer, that is wait the country like America. The reality


is, the people who live longer and are healthier, tend to be the


better off. The people who can do what you are saying, think about


society. We don't have a culture, salary pension, we don't have a


That is part of the problem, that is the air of unreality that has


been around for far too long. We expect somebody to provide a


pension for. Actually, from now on, and it should have been from quite


a while a you are on your own. Tough make a plan. The Government


we can argue about the age at which it will start to be paid. But there


want more than, that and most Is it a mix of trying to buy


property, put some gold away? have seen defined benefits scheme,


which essentially provide guarantee, we know guarantees cost money.


Equitable *Life got into trouble with a load of guarantees in the


products, and we know what happened to them. We know that providing


Equally defined contribution, which financial education, and really


quite sophisticated planning around those, ultimately it won't deliver,


because of the uncertainty around them. So we really need to think


somewhere in the middle space, around what's commonly being


determined as defined ambition. Something with a relatively low


level of guarantee. Restricted ambition this is? But some sort of


level of top up, which is not guaranteed, that allows people to


make some financial decisions. Sorry, you know, interest rates,


are they ever going to go up, go up evently but if you want to


understand why they may not go up fast. Look at Japan. I fully agree,


thing crystal clear, it would be foolhardy to put all your money


into Government bonds today. What is going on today is a form of what


economists call financial repression, the Government is


trying to pay off the national debt by essentially having a stealth tax


of them, then you are essentially going to lose money. It is very


worrying that the pension fund industry right now is dashing into


Government bonds. They are sold as the place to put your money in for


safety? They are supposed to be risk-free. And interest-free?


tend to draw the broad conclusions from aggregate data. It is not


aggregate data, it is a series of different sets of pension


arrangements. What should people do? I'm going back to the point I


was going to make earlier. It is easy to get tied up in discussing


aspects of investment returns, we should look at some of the very


positive things that have happened in the last five or ten years. We


have had some consistency in pension policy, we have had pretty


well consensus across parties about putting the pension reform agenda


in. That is a significant step forward. Millions of people are


going to be brought into pension saving over the next two to three


years. We had the announcement last week about the single-teir state


want. That is very positive I think. Thank you very much.


assets under anti-terror laws, bust. He maybe long gone, but the -


- he may be long gone, but the to be repaid the money he gave


The Treasury is still �2.2 billion out of pocket, but a ruling today


Are your savings not safe in a foreign bank?


Before the financial crisis Iceland was best known here for its geezer,


glaciers and Miss World victories. Then Iceland's banks went bust,


taking the country down with it in 2008. The collapse affected 230,000


UK deposors, whose savings in savings of �2.2 billion had to be


repaid bit Treasury here, which promptly demanded the money back


from Reykjavik, roughly half of that sum has been repaid already.


Today's European Free Trade Association court ruling, doesn't


affect the dozens of British local authorities, which also parked


almost �1 billion of council tax payers' money with Iceland savings


accounts. It means the Icelandic Government wasn't obliged to recur


the debts of privately-owned banks. Bjork k excited about it in a tweet.


The implications could be very important for Iceland, Britain and


the rest of the EU. This is good news for everybody involved. For


Iceland it has been under considerable uncertainty because of


it, now it is lifted it can get on rebuilding its economy. This is


also a blessing in disguise for the have been obliged to provide


Government gauorns for bank deposits d guarantees, for bank


times. The then Prime Minister, Gordon Brown, oped a diplomatic


wound between London and Reykjavik, when he evoked anti-terror laws to


seize all Icelandic financial assets. What happened in Iceland is


completely unacceptable. I have been in touch with the Icelandic


Prime Minister, I I have said this is illegal action they have taken,


we are freezing the asset of Icelandic companies in the UK where


against the Icelandic authorities, wherever that is necessary to


recover the money. Being lumped in people twice rejected a plan to


repay Britain in separate referenda. Four years on and the new UK


Government is quite sanguine with today's ruling, which can't be


repealed, that is because it has received most of the money back


from the bank that used to cone i sap sld save, the message is


regulators and legislators weren't doing their job up to the 2008


financial crisis but they are now. Five years on and quite a few barn


doors have been bolted with regards to financial regulation. Deposited


law, but savers will think twice before putting large sums in


Icelandic banks. Good evening minister. You still


this morning, of course we welcome it in Iceland, because it takes a


lot of legal uncertainties and puts it aside. It is also very important


to state that the estate of the failed bank will continue to pay


out priority claims to the depositors and creditors. As they


lot of the money has already been paid off? They have been doing that.


But it is �2.2 billion left? There are about 50% of the priority


claims already paid out. The estate will continue to pay priority


claims. It is estimated that the priority claims can't be and will


be repaid in full. That is the good news for everybody. I know that the


Icelandic people felt very put upon by Gordon Brown when he evoked


these anti-terror law, was the British Government wrong to give


money back to British depositors in Icelandic banks without knowing if


it would get the money back? Like I said, the estate is, it is


able to pay back -- the estate will priority claims. How long do you


been able to pay out, or the estate has already paid out about 50%, so,


estimating that this can happen quite rapidly in the near future.


But this is possible because the Icelandic parliament implemented,


in October of 2008, an emergency this can happen now, and that's why


we are able to do this. Do you think that foreign investors should


deposit money in small countries? When this all happened the banks


were nine-times the size of just back off the economies of


small countries when they come to make deposits? Well, I think that


this a sad history, a sad story, very heavy and important learning


process for all of us. And all the regulatory framework that the


Icelandic Government has been implementing in the past four years


has all had the aim of and the goal that this could not happen again.


That is very, very important. I think that we were, our regulatory


framework was not strong enough, and this is something that we have


learned and we have changed. A lot of what you have done to stablise


bondholders sink and so forth, you could never have done, had you been


within the EU, and yet I understand EU? Well, we have a very, you could


say we have a very different situation than many other European


countries. We are a very small nation, with our other currency. We


are only 230,000 people. It is very difficult to manage the kuorn --


320,000 people. It was difficult to manage the currency once the bank


fell. We needed capital controls, otherwise things would have gotten


a lot, lot worse here in Iceland. I think that we have, the capital


controls, and the reasons why they a lot of understanding on that


situation. But it is our aim, and the past four years, in


strengthening our economy so that we can start lifting the capital


years. Hopefully we will not have capital controls for very long.


we are going to get the money back, but can we trust you? Like I said,


been paying out to priority claims, and the estate of the failed bank


will continue to do so. Even though this ruling was like it was this


morning. But I think the main and the best thing about the ruling


this morning is that now this uncertainty is out of the way, and


we can move on and leave this sad Thank you very much for joining us


tonight. The French-led offensive in Mali


has succeeded in dislodging Islamist rebels from the northern


town and fabled town of Timbuktu. After a year in control they have


left many of the holy shrines and monuments smashed to pieces. As


they pulled out, they have apparently set fire to a library,


the Ahmed Baba Institute, which contains thousands of priceless


documents stating back to the 13th sent treatment one of the greatest


likeies of Islamic manuscripts in the world. We will talk about that


in a moment. First of all from Mali. Can you tell us the latest from


Timbuktu? Well, yes. As you say, we understand from malian official


was set ablaze four days ago by Islamist rebels, as they began to


flee from the town, ahead of the French advance. The institute


contains about 20,000 manuscripts, dating from the golden age of


Timbuktu as a great centre of Islamic learning, manuscripts about


science, learning and history, all housed in this brand-new research


institute, funded by the South African Government. Precisely


intended to preserve those manuscripts for posterity. They are


not the only manuscripts in Tim but tu, there are several hundred


thousand in private collections as well. This was the main single


damage was done. But we understand there has been considerable damage,


there has been considerable losses there. Let's talk now about the


advance of the French and the malian Government. Do you think


that -- Malian Government. Do you think the Islamist rebels are


fainting back, what will be the town in the north still in the


hands of the rebels. We expect now that the French will probably


retake that in the next few days. What President Hollande has said,


military intervention in Mali will be over. The French will retire to


their bases, after that they will have a support and training role


for Malian and other west African troops, who will be expected to


complete the conquest of the north, and then hold the territory. The


big question is how difficult a job will that be. Where exactly are


have the rebels now gone. Will they guerrilla war of the kind we have


seen for decades in this part of intelligence believes is some of


these Islamist leaders have already gone to the mountains, where there


is a well-established cave complex in the far north of Mali. We have


heard from Malian military sources that they believe some of the


rebels are now hiding in Timbuktu and other towns, and they pose a


into the north, and refugees return, we will see a lot of people being


accused of being infiltrators and talk about developments in Mali, we


have a Tuareg sociologist, Sufiah Yusof, Noman Benotman, a former


Libyan Jihadi, now of the counter extremist, Quilliam Foundation, and


Ian Bremmer, President of the Eurasia Group, we will talk about


the library in a moment. First of all, Dr Yusof, do you think, when


you hear it said that there may be a regrouping, and there maybe


further activities by the Islamists, what is your view of what is


happening at the moment? I think that this is the first step.


Probably the Islamists will melt a. Will they come back, as he said?


they have their opportunities, and the means, perhaps. If they can't


do that, perhaps they will resort to other things, dirty terrorism in


cities and things like that. Wherever they find easy targets.


Ian Bremmer, just on the basis of what Dr Yusof says, do you think


the French might be embroiled for be? It is clear that Hollande


easier battle at the beginning, he had to walk that back today. He


said today the French are wing so far. I remember when President Bush


said mission accomplished in Afghanistan, it didn't go well for


them. 60% of French supported it at the beginning, I bet if you took a


poll that will still be already going down. They will be there in


six months time. My colleague is of biding their time or urban


insurgency, or waiting to see attacks against French civilians in


Mali or closer to home, it could be France. There are a lot of folks


object of global war on terror was the US, today it is France. This


you heard it said there that there is some idea that the groups are


disappeared to the mountains, but some are still local? Some of them,


of course, I agree what was said from Timbuktu, it is well known the


tactics by all the Salafi Jihadists, I would rather say that rather than


Islamists. They want different things? Yes, there is two main


largest guerrilla warfare in the about them, the war is against them,


the other one more dangerous, a very low level urban guerrilla


warfare. What do the Tuaregs want? They want good governance. Under


this Malian Government? Under this Malian Government, they have never


been generally seperatist, I don't think so. Of course there was this


declaration of independence, but it was more, I think, sort of part of


a bargaining strategy. So the Tuareg, and the other groups are


not aligned in terms of their talking about. There is all sorts


of different sub-Al-Qaeda groups, and different conversations about


who else is out there? Al-Qaeda is not the same thing as the Tuareg.


No, of course not. The other people, the inhabitants of the northern


part of Mali, there are Arabs, there are all of them, what they


want is basically a good governance. They want good governance, and they


are not getting it, where do the Americans stand on this? It seems


very clear that Barack Obama is not on for any for moreen adventures?


It is very clear, the -- Foreign adventures? It is clear the United


States is providing refuelling and transport, we are picking up French


soldier, bringing them to Mali and going back. We are OK with that. We


have 60,000 plus dead in Syria and no appetite for that. President


Obama's inAugustation speech is focusing on nation-building at home.


We are reducing adventure in the Middle East not increasing it.


Let's move on to talk about what we think has happened, this burning of


that there are hundreds of hands, the building of the


collection was going on day by day, how important was the collection?


It is hard to estimate how many documents were damaged and how many


are still in good shape. Of course historically it is just such a rich


heritage, a treasure. If it disappears, it would be such a


disaster, actually. Much of it is about the flowering of Malian


cultural life around Timbuktu in the 14th and 15th centuries, we


haven't had a huge cache of documents like that before?


really, if these documents we lose this documentation. When it


the rebels would burn it? Because Look, first of all, I think I still


have a of doubt if they really burned all of it. Because I know


they have something with some specific documents or manuscripts,


it has to do with sufficientism, they have a strong ideolgical


Sufism. Sufi documents have already been destroyed? They think it is


they are leaving the down, it is a religious duty. Do you think they


still have a lot of doubt about what kind of damage. It has not


lot of conflicting reports. If it is true, Dr Youssouf, how


cultural heritage to have lost this material? I think it would be a


very sad thing. But what I would like to say about this, is Malians,


ought to take advantage of their culture while it is there. And not


wait until it is not there to capitalise on it. To get everything


they can get out of it. Because once it is not there, then it is a


problem. I think it is not enough to have manuscripts in a place like


the Ahmed Baba Institute. What is more important, it is like having


pieces in a museum, what is more important is promoting the cultural


heritage, and helping people be aware of that heritage. Helping


them to incorporate it in their own intelligence.


Thank you very much. The US and Japan today agreed to work closely


with South Korea to dissuade North Korea from carrying out what is


called a nuclear test of a higher level. However, the north Korean


news agency announced that forcing the country to give up the right to


satellite launch is a little short of pressurising it to abandon its


sovereignty. So South Korea remains constantly alert to attack, and the


rare attempt at defection. Newsnight was given extraordinary


access to the closed border area, frozen in time since the end of the


Korean War. Every day, for 6 years, someone has


patrolled the world's last Cold War frontier. Today it is Lieutenant


Yoo Hak-joo, a baby-faced 24-year- old, a love of long distance


running and a girlfriend who worries back home. The South Korean


army unit he leads are known as Flying Dragons, the small stprech


of border they defend, -- stretch of the border they defend is bleak


and the facilities rudimentry, and the temperatures today below minus


20. Twice a day the Lieutenant and his men walk the Armistice Line


drawn by the United Nations 20 years a checking for any signs of


disturbance in South Korea's perimeter fence. This is where the


two sides in the Korean War stood when the fighting stopped. South


Korea and the US on this side, North Korea and China on the other.


Not much has changed here since. The old enemy, North Korea, begins


just over a mill away, across a buffer zone, packed with land mines.


And, on the southern side, telephones, rigged up moing the


mines for stray defectors -- rigged up among the mines for stray


defectors to call across, the army wouldn't say when they last called.


The food isn't bad, one of the conscriptss is a trainee chef.


Every man has not chosen to be here, in Japan you serve two years


national service. The Government has talked about bringing it down.


But with the birth rate declining some are worried it will leave the


country vulnerable. Some already know what vulnerable is all about.


TRANSLATION: It is less about hierarchy more about brotherhood,


we eat, sleep and lead together. It is high-stress but I lead my men to


do our duty. Any hesitation could lead to my family, the Korean


people and my friends to be in danger. We need to be ready to


defend this position with everything we have got. We need to


be mentally prepared. For the soldiers here, two 2kms away, North


Korea can seem especially threatening. This frontier is


scattered with old battles, and the last military conflict between the


north and the south was two years ago. In his new year's address this


year, the north Korean leader talked about ending confrontation


with the south. And with South Korea, China and Japan, all


starting this year with new leaders, many people are hoping there's a


chance for a political this aw. Since then -- thaw. Since then


north crowia has defied the UN and announced it will launch long-range


rockets and carry out a third nuclear test. The live fire


exercises aren't for show. One young recruit told me he gets most


scared at night listening to gunfire from the north. Scared


perhaps that this could happen again. Just a few miles away from


the Lieutenant's stretch of the boarder, lies Gloster Hill, where


British servicemen, fighting with their American allies 60 years ago,


watched their regiment overrun by the Chinese army. There weren't


many left alive to remember it. They kept coming. When they came


they did come, and in great numbers. You know. When we were on Gloster


Hill, all you could see was the hills covered in them, like ants.


You would look around there, they were on that hill, that hill, keep


looking around. That was it. He this just kept coming. These days,


it is Korean soldiers who stand eyeball-to-eyeball at the border's


only Joint Security Area. North and south, 24-hours a day, guarding the


line of control inside the UN compound. The list of rules for


visitors here reflects just how tense relations have remained, no


pointing, no shouting, and until recently, no blue jeans.


It has been so long, though, that the uneasy truce has become almost


good money to visit a piece of the of South Korea's top tourist sites,


even with visiting Chinese. There are gift shops, message boards, and


statues to take your photo with. only one school to choose from. And


the English lessons, given by real American soldiers are perhaps the


biggest draw. But, this is still the frontline,


in an unresolved conflict between a heavily-armed communist state, and


its capitalist arch enemy. One in Asia could change very quickly.


One man, who knows what it is like to eyeball your brother enemy each


day is Taishou, now a financial an -- Taishou it a, now a financial an


cyst, he was, two years ago, one of the soldiers guarding the blue huts


along the line of control. It was so tense at the frontier, he said


he never slept very well, everyone between the two lines every day.


One day when I was patrolling, one guard from North Korea called my


name. I was so surprised the first time, but I felt this feeling of


friendship, they actually called my name. We are the same Koreans, we


When we lock at their mouths, they They swear at us. Do you mouth bad


recorded in there, we have no chance to contact them in person or


in facial expressions, that is not Metropilis is 30 miles from the


frontline, one reason why the US army has its main military base


here, on a slice of prime real estate, bang in the middle of the


capital. The razor wire against the neon of Seoul's party district.


There are 28,000 American troops still based here, in the next


couple of years, half those bases, including most of this one, will


close, and the troops will move to is where they are moving to. The


town of Pyeongtaek, 06 miles south, 60 miles south, they will be out of


this new location gives them more military, just on the other side of


this sea here, many people are bond whaerg the future will look like?


-- wondering what the future will look like? Construction has already


rebalancing of troops in Asia. 60% of the forces could be based here.


China is building up its Navy too, with aircraft carriers and


submarines. There could be two superpowers in the area. Some local


families are wary of their new neighbours. There has been solar


panels and new jobs, but some say it is not enough to make up to make


up for having US soldiers on their doorstep. This man is raising


awareness of what the new base could mean. TRANSLATION:


rational has changed. It used to be north, now it is fighting wars


America wants to fight. This location is ideal for the US. They


to face off with China. America says its rebalance something not


about China, but safeguarding regional peace, as it has done for


decades. But trip wires exist. Like the one guarded by the


Lieutenant and his Flying Dragons. Beijing and Washington and -- feel


differently about how to defend against North Korea. A sobering


thought for the night patrols collecting ammunition. If this Cold


War relic ever turns hot again, this handful of conscriptss will be


facing a different kind of battle to the one their grandfather's --


grand fathers' fought. That's all we have time for now. We will be


we have time for now. We will be back tomorrow, goodbye.


and start to blow the rain back up from the channel across the whole


of the UK, turning wetter in possibly turning more drizzley


towards the south. Still heavy bursts of rain for northern England


is damp and drizzley. Some dryer rain to come across the south west


of England. An amber rain warning in Devon, and also across South


Wales. Over the hills 50mms, two inches of rain in 24 hours on


The rain clearing away from Northern Ireland in the afternoon,


it may get late sunshine out things go down hill. Early sunshine


but wet and windy through the afternoon. Some of the rain will be


heavy, particularly over the hills. Look how mild it is and how it


changes on Wednesday. Brighter, yes, but sunshine and some showers, and


Will most of us retire poor? Plus, why Iceland didn't pay us back for its broke banks, the capture of Timbuktu, and life in the Korean DMZ.

With Kirsty Wark.

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