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China Tech Giant Arrested, Huawei’s Chief Financial Officer Is Facing Charges In The Us, Potentially Complicating Sensitive Talks To End

December 7, 2018

xfdls NEWS-STREAM-01


<Date: December 6, 2018>

<Time: 08:00:00>

<Tran: 120601cb.k31>

<Type: SHOW>

<Head: China Tech Giant Arrested, Huawei’s Chief Financial Officer Is

Facing Charges In The Us, Potentially Complicating Sensitive Talks To End

The Trade War; A Glimmer Of Hope, Yemen’s Warring Sides Sit Down For Peace

Talks As Millions Suffer; Racing To Save The Great Barrier Reef, World

Leaders Gather For Climate Talks As Life Threatening Carbon Emissions Hit

Record Highs; A Second Memorial Service Will Take Place For The 41st

President, George H.W. Bush At The Houston Church Where He Worshipped For

Many Years. Aired: 8-9a ET - Part 1>

<Sect: News; International>

<Byline: Will Ripley, Matt Rivers, Samuel Burke, Ivan Watson, Jamie Gangel,

Sam Kiley, Nima Elbagir, Nina dos Santos, Patrick Oppmann>

<Guest: David Beasley>

<High: Just as the U.S. and China are set to begin sensitive, high stakes

negotiations to end the trade war before it seriously disrupts the global

economy, there is a new complication, the arrest of a top Chinese tech

executive in Canada. There will be a final memorial on Thursday and former

President George H.W. Bush will be laid to rest at his Presidential

library. For the first time in two years, the warring sides in Yemen’s

Civil War are sitting down to talk. It is the third day of a bruising

Brexit debate in Britain and Prime Minister Theresa May, she is on the

ropes. A U.N. panel recently found earth’s temperatures have already risen

by 1.5 degrees>

<Spec: Huawei, Meng Wanzhou, George H.W. Bush, Memorial, Yemen, Brexit,

Theresa May, Climate Change>

<Time: 08:00>

<End: 08:59>

WILL RIPLEY, INTERNATIONAL CORRESPONDENT, CNN: I’m Will Ripley in Hong Kong. Welcome to “News Stream.” China tech giant arrested, Huawei’s Chief Financial Officer is facing charges in the US, potentially complicating sensitive talks to end the trade war. A glimmer of hope, Yemen’s warring sides sit down for peace talks as millions suffer. Racing to save the Great Barrier Reef, world leaders gather for climate talks as life threatening carbon emissions hit record highs.

Just as the U.S. and China are set to begin sensitive, high stakes negotiations to end the trade war before it seriously disrupts the global economy, there is a new complication, the arrest of a top Chinese tech executive in Canada. Huawei’s Meng Wanzhou is facing extradition to the United States. Now, her arrest is sparking a selloff in global stock markets. Asian markets slumped with Hong Kong’s Hang Seng index down almost 2.5% and you can see all the red arrows around the screen. All over the world, whether it is Asia or European markets, they are down more than 2% and in the US, the news is not looking good, either. News of Meng’s arrest sending Wall Street futures tumbling.

The U.S. markets were closed Wednesday for a day of mourning for the late President George H.W. Bush. China’s Ministry of Foreign Affairs is calling for Meng’s release, a publication ban in Canada prevents any reporting on evidence or possible charges against Meng. But there are previous reports from the “Wall Street Journal” saying that the U.S. has been investigating whether Huawei was violating sanctions against Iran.

So let’s go to CNN’s Matt Rivers. He is live in Beijing and Matt, I would imagine for people who are about to sit down to try to end this trade war, this arrest couldn’t come at a worst time.

MATT RIVERS, CORRESPONDENT, CNN: No, that’s exactly right, Will. I mean, I think when you recognize that this is - this arrest is now taking place in a bubble, it’s taking place in a much broader picture of a trade conflict between the United States and China.

It was just a couple of days ago that President Xi and President Trump agreed to this 90-day framework that they were going to try and come up with a deal, negotiate in the next three months or so to come up with a way to stop this trade war. Those negotiations were going to be difficult enough. And now, you have this arrest thrown in.

So just to recap, basically what’s happened here is that this CFO was arrested by the Canadian authorities on behalf, according to Huawei, on behalf of the U.S. They want to extradite her to face unspecified charges in the eastern district of New York. That is a massive step for the United States to take, choosing not only to eventually charge this CFO, Meng, but they want to bring her back and face charges in the United States.

It can’t be overstated how aggressive of a move this is, Will, for the U.S. to make this step, to do so at the same time as you’re trying to figure out this trade war. It really isn’t going to make things any easier. That said, one quick note here, the Commerce Ministry here in Beijing today had an opportunity to really respond to this Huawei arrest. They chose not to and actually, were more optimistic than they had been yesterday before news of this arrest came out. They said they think there will be a deal reached at the end of the 90 days. So far, the Chinese side is not using this arrest to scuttle these trade talks, but as you said, Will, it’s not going to make things any easier.

RIPLEY: And when you have such a large figure in the Chinese tech industry facing a charge like this, I would imagine that there could be ramifications across the industry.

RIVERS: Yes, without question. I think if you’re a western CEO here in Beijing, now might be a good time for you to maybe take a vacation because I think that China might be looking to retaliate. They certainly could. I mean, this is not going to go unnoticed by China. They’re not happy with this. They have said that she should be released as soon as possible.

But look, there could absolutely be retaliation from the Chinese side about this, and I think that’s something that companies here are going to be looking at. You know, she is the daughter - the CFO Meng, she is the daughter of the founder of Huawei. That is the kind of CEO with the kind of power here in China, you might have Xi Jinping on speed dial on his cell phone.

So this is something that the upper echelons of China’s government are going to be keenly paying attention to. This isn’t just some ordinary arrest. This is a high, high level person in the executive class of China.

RIPLEY: And Beijing certainly, if they feel that their interests are being attacked, they do fight back, so we’ll have to monitor all of this. I know you’ll be watching it very closely there in Beijing. Matt Rivers, thanks so much. Let’s bring in our business and technology correspondent, Samuel Burke who joins us now from London.

So walk us through - first of all, why are global markets reacting so negatively to this?

SAMUEL BURKE, BUSINESS AND TECHNOLOGY CORRESPONDENT, CNN: Well, Will, let’s just pick up with that word that Matt used in his report - retaliation. So many analysts have long feared that if things don’t go well in this trade war that eventually China could really retaliate against which company? Against Apple.


BURKE: This is a company that is the most valuable company in the United States of America, and 20% of its revenue comes from China. So it’s an easy target for the Chinese. So if China sees their own version of Apple, let’s just call it that, if they see Huawei being attacked in some way, even if the U.S. legitimately believes it has a reason to go after the founder’s daughter, if China doesn’t see it that way, they could always retaliate against Apple. Again, the most valuable company in the United States of America.

So, not only do you see companies that supply Huawei, their stocks down, you take a look at Apple, and you see it down multiple percent, down more than 2% in premarket right now. There is this big fear that something like this could set off all sides and then, all of a sudden the trade war is that much worse than we already know it’s been, Will.

RIPLEY: And we do know that if those tariffs go into effect, three months from now the global financial implications could really be devastating and that could just be the beginning. Samuel Burke, thanks so much for that update from London. And we will have much more on the arrest of Huawei’s CFO as well as the opening bell on Wall Street coming up on “First Move” with Julia Chatterly beginning in less than one hour.

CNN has obtained exclusive satellite images showing North Korea is expanding a key long-range missile base. Now, it’s seven miles or 11 kilometers from an existing base. You can see this map here and the location itself is in the Hamgyong Mountains. This is an area of North Korea. It’s very mountainous and the area in particular if we zoom in here, there is this long, narrow valley, which is ideal for North Korea to launch and house the kind of missiles, the long-range missiles that could potentially target the U.S.

Because there are caves that are along this valley here and inside those caves, it is believed that there are mobile missile launchers that could be rolled out to launch an attack with relatively no notice whatsoever. So obviously, facilities like this are concerning to the U.S. and what’s also concerning is that North Korea continues to upgrade and expand these facilities. Work that began in 2017 at the height of tensions between the U.S. and North Korea, but work that continued two months or more after the summit in Singapore between President Trump and North Korean leader, Kim Jong-un.

So some might ask, why would North Korea keep expanding facilities like this after making a pledge to denuclearize and eventually have a nuclear weapons free Korean Peninsula? The answer is that they don’t have any agreement mandating otherwise. There is no written agreement between the U.S. and South Korea - and North Korea for North Korea to do anything other than work towards the eventual denuclearization of the Korean Peninsula.

So they can build all they want in their missile bases. They’re not violating anything when it comes to the talks between the U.S. and North Korea.

Now, these images are emerging as speculation grows that Kim Jong-un could potentially travel to Seoul, possibly this month. South Korea is not confirming what are still rumors at this point, but very high level rumors, people who believe Kim Jong-un could be making a trip to the South Korean capital. It will be the first time that that has ever happened since the Korean War.

If it does happen, it would be significant and it could shape the upcoming talks expected early next year between Kim Jong-un and the U.S. President Donald Trump.

Now we turn to Japan where at this hour, rescuers are searching for five missing U.S. crew members. They’re among seven people believed to have been on board two U.S. Marine planes that collided in midair off the coast. Ivan Watson reports.


IVAN WATSON, SENIOR INTERNATIONAL CORRESPONDENT, CNN: A desperate search and rescue operation is under way after a predawn air to air refueling operation being conducted by two U.S. Marines aircraft ended in a collision and then the crash into the Pacific Ocean.

This involved a U.S. Marines KC-130 Hercules. It’s a kind of tanker, a flying tanker plane that was conducting the operation with the U.S. Marines F-18A Hornet. And the rescue operation is a combination, it’s being done by the Seventh Fleet from the U.S. military, from the U.S. Navy, as well as the Japanese self-defense forces which have sent out at least three ships and more than a dozen aircraft to help in the search and rescue effort.

The U.S. Ambassador to Tokyo has thanked the Japanese for their contribution in this effort.


WILLIAM F. HAGERTY, U.S. AMBASSADOR TO TOKYO: I’m encouraged by the fact that the United States and Japan have worked so closely together. I want to thank the Japan self-defense force for immediately joining us in a closely integrated exercise to search and rescue those involved.


WATSON: Now, the Marines say they don’t know the cause of the crash, the collision, because, of course, the efforts right now are focused on trying to save lives.


WATSON: And the reason behind this will still be under investigation likely for some time. Again, now, the effort is to try to save lives of some of the Marines missing now hours after nightfall now in probably difficult weather and climatic conditions out in the middle of the Pacific Ocean. Ivan Watson, CNN, Hong Kong.


RIPLEY: In just a few hours, mourners will remember the life and legacy of former U.S. President George H.W. Bush in his home state of Texas. A second memorial service will take place for the 41st President at the Houston Church where he worshipped for many years. Afterwards, he will be laid to rest at the Bush Presidential Library in College Station, Texas.

On Wednesday, thousands gathered at the National Cathedral in Washington paying tribute to the former President. As Jamie Gangel reports, his state funeral was full of praise, humor and poignant memories.


JAMIE GANGEL, SPECIAL CORRESPONDENT, CNN: Washington says goodbye to President George H.W. Bush. Every living US President, royalty, world leaders, politicians and dear friends at the National Cathedral. A ceremony filled with tears and laughter.


JOHN MEACHAM, PRESIDENTIAL HISTORIAN: As Dana Carvey said, the key to Bush 41 impersonation is Mr. Rogers trying to be John Wayne.


GANGEL: Former senator Alan Simpson, a long-time friend, recalled how Bush helped him during a crisis.


ALAN SIMPSON, FORMER US SENATOR: He reached out to me while I am tangled in rich controversy and taking my lumps and he said, “Yes, there were staff members, Al, who told me not to do this. But, Al, this is about friendship and loyalty.”


GANGEL: Brian Mulroney, former Canadian Prime Minister, praised Bush’s leadership as the Cold War came to an end.


BRIAN MULRONEY, FORMER CANADIAN PRIME MINISTER: No occupant of the Oval Office was more courageous, more principled and more honorable than George Herbert Walker Bush.


GANGEL: The son eulogized his father.


GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: To us, he was close to perfect, but not totally perfect. His short game was lousy. He wasn’t exactly Fred Astaire on the dance floor. The man couldn’t stomach vegetables, especially broccoli. And by the way, he passed these genetic defects along to us.


GANGEL: And praised him for teaching him how to lead in public life and in private.


GEORGE W. BUSH: So through our tears, let us know the blessings of knowing and loving you, a great and noble man, the best father a son or daughter could have. And in our grief, I just smile knowing that dad is hugging Robin and holding mom’s hand again.


GANGEL: And a final departure from Washington for the 41st President aboard the same 747 he used while in office, taking him home to Texas for the last time.

Special Air Mission 41 has now landed back in Texas. There will be a final memorial on Thursday and former President George H.W. Bush will be laid to rest at his Presidential library. Jamie Gangel, CNN, Washington.


RIPLEY: He was a President respected by so many people from so many countries around the world. CNN will have full coverage of the final goodbye of former US President George H.W. Bush. It begins at 11:00 p.m. here in Hong Kong, 3:00 p.m. in London right here on CNN.

For the first time in two years, the warring sides in Yemen’s Civil War are sitting down to talk. That alone is a break through, but the hard work is about to begin. That’s next on “News Stream.”


RIPLEY: You’re watching “News Stream” coming to you on a Thursday night from an always bright Hong Kong. For the first time in two years, the internationally recognized government of Yemen is sitting down at the negotiating table with Iranian-backed Houthi rebels.

Now just the fact that these two sides are sitting down is significant because talks collapsed back in 2016. Now, these new U.N. broker talks are under way at this moment in Sweden. In a positive sign, the special envoy involved in all of this say that the warring sides have agreed to a prisoner swap. This is part of a confidence building measure before the actual negotiations to try to bring about an end to this conflict that has sparked a devastating humanitarian crisis, the worst that the world has seen in recent years.

Also, they are stressing that these talks present a critical opportunity because half of Yemen’s population, half of the people living in that country could become vulnerable to famine if no solution is reached.

It is a dire situation going on for nearly four years now. The Houthi rebels have been fighting a US-backed Saudi-led coalition and the outside powers who have a hand in this ongoing war, they are not even sitting down at the table.

So for the latest on this, we go live to CNN’s Sam Kiley in Abu Dhabi. Sam, the fact that these talks are even happening right you now, getting to this point was a challenge, but the real challenge now begins. What is it going to take to make progress this time around?

SAM KILEY, SENIOR INTERNATIONAL CORRESPONDENT, CNN: Well, I think the first thing is - and this was a point being made by the chief U.N. negotiator is to manage expectations. The mere existence of a process is in and of itself, Will, I think a breakthrough. That is certainly the view of Mr. Griffith, the negotiator. He is saying that they want to be able to take Hudaydah Port - that is the main port controlled by the Houthis, the main port for the whole of Yemen out of the battle. He wants to take a look at the future of the Sana’a Airport, which is also in Houthi’s hands. They want it opened to international traffic, not just to the United Nations.

And on the other side, of course, the government which is backed by Saudi Arabia and the UAE and others who wants to be back in control of all the landscape, so there is a great deal of distance between the two sides as you might expect, but there is an atmosphere now because of the humanitarian catastrophe, Will, that I think certainly of those who are backing the Yemeni government side, notably the Saudis and the UAE do want to try to inch towards something approaching a ceasefire because this has become a really toxic issue for their international reputations, among other things, Will.

RIPLEY: The ill of this tragedy is so difficult to comprehend, so many people watching and hoping that something will come out of these talks in Sweden. Sam Kiley, thanks so much for reporting live for us from Abu Dhabi.

It’s estimated that 85,000 children under the age of give in Yemen may have already died of starvation because of this war and millions more are still at risk. CNN has obtained exclusive footage of the fight to save a young life. We do need to warn you, Nima Elbagir’s report contains some graphic images.


NIMA ELBAGIR, SENIOR INTERNATIONAL CORRESPONDENT, CNN: At the front lines in Hudaydah, every inch of territory gained and lost has been brutally fought over, paralyzing Yemen and ravaging its people.

As the world finally works to force the US-backed Saudi-led coalition and Iranian-backed Houthi rebels to an agreement for so many here, it’s already ...:


ELBAGIR: ... it’s already too late. What we’re about to show you is almost unimaginable in its horror. These are nine-month old Akeel’s (ph) last gasps. Filmed inside a local clinic, Akeel (ph) died as the medical team fought to revive him. His desperate father borrowed the money to bring him here and all he’s leaving with is a little body wrapped in white.

In hospitals and clinics across Yemen, time is running out. Little Muftasen (ph) is also nine months old. He struggles to even keep his eyes open. Support for the war in Yemen is waning and many U.S. lawmakers want out. Although U.S. Secretary of State Mike Pompeo says without American involvement, life here would be worse. It’s hard to see how. Nima Elbagir, CNN, London.


RIPLEY: The extent of this humanitarian crisis is horrific, staggering. The U.N. saying that 22 million people in Yemen are at risk right now from famine and war and any moment now, the World Food Program is expected to release a new report showing just how dire the situation has become.

So let’s speak with the Executive Director of the World Food Program, David Beasley joining me now from Rome. David, it’s not an issue of there not being food available to get to these families and these children. It’s a matter of actually navigating through the war zone to get there. What is being done to try to ease the availability of volunteers to get to these devastating areas and help these people?

DAVID BEASLEY, EXECUTIVE DIRECTOR, WORLD FOOD PROGRAM: You know, you just saw some of the hardest pictures you can imagine, but I can tell you, those are not isolated pictures. I was literally on the ground there just two weeks ago, not just in Aden and Sana’a but also in Hudaydah because Hudaydah is the lifeline for the port.

I was at one of the hospitals in Yemen and this is no kidding. I couldn’t believe my very own eyes. I was watching little girls and little boys die right before my very own eyes because of this war. And I asked the administrator of the hospital, in one of the rooms where this little boy named Mohammed who was eight months old, should have weight 10 pounds, he weighed about 2.5 pounds. He died the next day.

And I asked this administrator, I said, “How many children are you getting a day?” And he said, “About 50 just like this.” I said, “How much capacity do you have?” He said, “We have the capacity for 20.” I said, “What do you do with the other 30?” He said, “We send them home to die.”

So what I saw on the ground is our worst fears and now the numbers are backing up what we were experiencing, what we need to do. Last year, we were able to avert four countries facing famine because we had money and access. We can do the same thing in Yemen if we have not just the money, but we must have the access. That’s critical.

RIPLEY: Are both sides to blame here?

BEASLEY: If you recall last year on CNN, I was pretty tough on the Saudis and the coalition because of the blockade and the lack of financial support. We worked through that. We eliminated the blockade, we received funds that we needed. Now, and also if you remember, the Houthis were really excited that I was saying those things, and I said to them very clearly, “Let me be very clear, I don’t take sides. If you cross the lines, I’m going to jump on your back, too.” And so now, last week - two weeks ago, I met with the Houthis, different factions in the Houthi coalition expressing our concerns. We don’t have the access we need, we don’t have the people we need. You’re blocking our visas, our equipment and the things that we need to make certain that not a single child suffers in Yemen and we know they are.

So they’re saying, we’ll see, that they’re going to give us the access and the support that we need because children are dying every 10 to 12 minutes and it’s getting worse and let me say this. A humanitarian response is not going to solve the problem alone now. The economy has collapsed so severely, we also have to have an injection of liquidity to stabilize the marketplace because even if someone does have money, the food prices are out of the roof now and there’s hardly any jobs available at all.

RIPLEY: What does a child who is starving to death go through? How long does it take and what kind of suffering? I want people to know because the pictures tell one story, but you know firsthand what people are enduring right now in Yemen.

BEASLEY: You know, I was in one of the hospital rooms and again, this is not isolate. And I remember walking in -- and I’m a father with four children and the two little feet of the children were sticking out of the blanket and I thought, “Oh, I’ll go tickle the feet and get s smile.”


BEASLEY: When I tickled the feet of this little teeny boy, there was no smile at all. Literally, like tickling a ghost. I talked to a mother who had driven 300 kilometers to get to the hospital going through war zones, frontlines, checkpoints, only to find the situation that they would be turned away. It is a desperate situation all across the country. We’re calling on all sides to do at least three things. One, bring peace. The children need hope. They have to have peace. Second, we need humanitarian funding and access and we must stabilize the economy.

If we can get the access and the funding, we can save lives as we are doing. We can avert famine as we did last year in four countries, but we need access and we need money, but best of all, we need the war to end.

RIPLEY: Absolutely. David Beasley, thank you so much for sharing your perspective and I hope that the powers that be are listening to this because it has to stop. Thank you, David.

One of the driving forces behind Yemen’s devastating Civil War, Saudi Arabia and the Saudi-led coalition fighting in Yemen could be facing backlash from its most powerful supporter, the U.S. The reason, anger over the murder of Saudi journalist Jamal Khashoggi.

Now, we told you about this time yesterday how US senators both Republicans and Democrats are demanding that the White House hold Saudi Arabia responsible for Khashoggi’s murder at the consulate in Istanbul.

In the coming hours, a group of senators will be working on a deal, a deal that could really hit the Saudi Kingdom drastically reducing US support for the war in Yemen, blocking billions of dollars in arms sales to the Saudis, even doing something that U.S. President Donald Trump has refused to do, condemning the Saudi Crown Prince, Mohammed Bin Salman.

Even members of Mr. Trump’s own party who rarely speak against him. They’re criticizing his decision to prioritize profits over the findings of the CIA. U.S. lawmakers even some on his own Party have introduced a scathing resolution to basically criticize the Crown Prince on two fronts, calling him complicit in Khashoggi’s murder and also sharply criticizing his role in Yemen, widely considered the world’s worst humanitarian crisis in recent years and we will stay on top of all of it for you.

It is the third day of a bruising Brexit debate in Britain and Prime Minister Theresa May, she is on the ropes. Can she survive this? We’re live in London. Plus, a technological milestone for Cuba. Locals finally getting full access to the internet on their cell phones. Is that a good thing? We’ll bring you a live report from Havana.


RIPLEY: In Hong Kong, I’m Will Ripley in Hong Kong, you’re watching “News Stream” and these are the headlines we’re following at this hour. The arrest of a top Chinese tech executive is sending shock waves through global stock markets. Huawei Chief Financial Officer Meng Wanzhou was arrested in Canada. She is facing extradition to the U.S. and Asian markets, they have slumped on the news. European markets and U.S. futures also down.

And in the U.S., news of the arrest has sent, as we said, Wall Street futures stumbling. We will have the opening bell in just about one hour coming up on “First Move” right here on CNN.

The highest ranking Catholic official ever found guilty of concealing sexual abuse by priests has been his conviction overturned. An Australian court has tossed out the conviction of Philip Wilson. He is a former Archbishop who was previously convicted of covering up a priest’s sexual abuse back in the 1970s. The court said prosecutors failed to prove their case beyond a reasonable doubt.

Now we turn to the UK, intense times there. British lawmakers are entering the third day of a marathon debate on Theresa May’s controversial Brexit plan. The week has not gone well for the Prime Minister so far after being found in contempt of Parliament on Tuesday, her government was forced to publish something that it wanted to keep secret -- the legal memo that it received ahead of agreeing to the withdrawal deal with the European Union.

And in a fresh blow for the Prime Minister, the European Court of Justice says it will deliver a ruling next Monday on whether the UK can unilaterally reverse its decision to leave the EU. That is the day before Parliament votes on her Brexit plan. So many questions and here with answers, CNN’s Nina dos Santos who joins me now live from London. Can Theresa May survive this?

Update hourly