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CNN NEWSROOM

Turkish Government Trying to Connect the Dots; Top White House Members Fight Over Immigration Issue; Trump Anxious About Border Crossers; Small Businesses in U.K. Affected by Brexit; Kandahar Police Chief Killed In Afghanistan; Defense Chief From U.S. And China Meet In Singapore; Singapore Forum Tensions In South China Sea Hot Topic; CNN Obtains Rare Access Inside Myanmar; Prince Harry And Meghan Tour. Aired 3-4a ET

Aired October 19, 2018 - 03:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(COMMERCIAL BREAK)

[03:00:00] GEORGE HOWELL, CNN HOST: A person of interest. A man seen on security cameras could provide clues to the fate of missing journalist Jamal Khashoggi.

NATALIE ALLEN, CNN HOST: A heated argument in the West Wing. President Trump's chief of staff and national security advisor get into a shouting match.

HOWELL: And a royal climb. Prince Harry hikes up the Sydney Harbor Bridge, takes the view within.

Live from CNN world headquarters in Atlanta, we want to welcome our viewers our viewers around the world. I'm George Howell.

ALLEN: And I'm Natalie Allen. Thanks for joining us. And this is CNN Newsroom.

HOWELL: New details coming to surface about what exactly happened the day the Saudi journalist Jamal Khashoggi disappeared. CNN has learned Turkish authorities acted immediately upon learning that he was missing within hours they suspected that he had been killed.

ALLEN: Khashoggi's family in Saudi Arabia says that they still consider him a missing person. Absent any conclusive proof that he is dead. They say the Saudi government has been keeping them informed about the progress of its investigation.

HOWELL: And in the meantime, this from a pro-government newspaper in Turkey publishing surveillance photos of the Saudi intelligence officer with close ties to the crown prince arriving with other Saudis at the consulate in Istanbul on the day Khashoggi was there. Hours later he flew back to Riyadh on a private jet.

ALLEN: The search for Khashoggi started about three and half hours after he went inside the consulate. When he didn't come back out as we have reported his fiance called an advisor to the Turkish president and that set off a frantic manhunt by Turkish authorities. Our Nic Robertson is joining us now from Istanbul. Little pieces of this puzzle, Nic, are out there, but the question is, are they coming together?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: We've been able to go with a number of different sources here in Turkey and outside the country to piece together that timeline, so that phone call you are talking about from his fiance about there and a half hours after he went into the consulate that was around about 5 p.m.

The advisor to President Erdogan then calls a number of other government officials including the intelligence officials and calls the Saudi ambassador in Ankara, that ambassador, the Saudi ambassador says he's not aware of the situation with Jamal Khashoggi.

By about 6 p.m. that afternoon the intelligence officials are retrieving and analyzing recordings from inside the consulate. Now there are recording that the Turkish officials have yet to admit publicly to that exist. But they analyze those recording and this is around 6 p.m. in the afternoon and realize something very bad had happened.

They realize that what the situation with Jamal Khashoggi was a bad situation. They contacted police at the airport and said warn them that they thought that Khashoggi was in danger of being abducted. Those airport police said that there were seven Saudis there waiting to get on a private jet to flight back to Riyadh, a private jet that arrived in earlier in the day.

The Turkish authorities will later -- later to conclude was the aircraft that board and part of what they call the head team that was going to proceed with this operation against Jamal Khashoggi.

The police at the airport say that they had scanned and this is by about 8 o'clock in the evening, 7 or 8 o'clock (AUDIO GAP), they say by around about that time they had scanned (AUDIO GAP) the passengers, they've gone through security they've scan their bags and see nothing untoward.

Undercover intelligence operatives at the airport then addresses airport official went on board that Saudi private jet that chartered jet and unexamined that they couldn't find anything on board that aircraft.

But what they had concluded what Saudi and what Turkish intelligence have concluded by that stage early in that evening was that Jamal Khashoggi had been beaten, tortured, killed, and then they believe that he was dismembered.

So, this timeline that we've been able to build up from a number of sources indicates that the Turkish authorities very quickly were able to establish what happened to Jamal Khashoggi and tried to figure out if Saudi is leaving the airport on a private jet had anything about them that would give the investigators and the intelligence officials here any clues as to whereabouts of Jamal Khashoggi. [03:04:59] It's worth noting here as well that (AUDIO GAP) a jet left the Saudi and at five a little after 5 p.m. in the afternoon. And of course, that was before the intelligence authorities were able to alert the police at the effort to search that aircraft.

But of course, the key for the investigators right now remain finding Jamal Khashoggi's body. Natalie?

ALLEN: Right. And such gruesome details there a hint of what he had to endure and how in the world they what they did with his body and how they removed it there from the building right behind you it's so bizarre and still hangs to think about.

Do you expect more from the Turkish authorities there, Nic. It sounds like they are doing an earnest investigation in this. Do we expect it to be more forthcoming to give us more details about how they know what they say they know?

ROBERTSON: I think we can expect that. The way Turkish officials explained it is they don't want to sort of hit what will be described as a nuclear option which would be releasing this -- releasing this recording from inside the consulate.

They say that they are staying away from that because they are trying to work with the Saudi authorities asking them every step of the way, is there something you would like to tell us, because obviously they believe very clearly and definitively in their minds, and this is something they've been consistent about since the beginning that they have the evidence that Khashoggi was murdered there.

And because they don't get answers from the Saudi authorities then there's been this continues sort of great feed of information into mostly local media here. Some international media as well.

So when you piece that together and go back to different sources and ask them to confirm details the narrative that emerges from Turkish investigators is a very damning one for Saudi Arabia and a very difficult one for the leadership there to find a way to explain that doesn't rest heavily on the fact that Crown Prince Mohammed bin Salman is singularly in charge in that country. And it would be hard to imagine how an operation of this size and implication could unfold without his knowledge.

That's the narrative that emerges from Turkey. And of course, for Turkey it's important (AUDIO GAP) for an investigative level for a credibility level but also Saudi Arabia in the broader context and potentially the United States in the broader context to have this to be able to put that out that nuclear option should they feel that they need to.

ALLEN: Right. And that's obviously something there probably considering as a way to hear the next step from Saudi Arabia on this. Nic Robertson for us there live in Istanbul. We appreciate it. Thank you.

HOWELL: All right. Since day one since Khashoggi disappeared the Turks have alleged that he was dead, murdered inside the Saudi consulate there in Istanbul.

ALLEN: Seventeen days later that scenario now appears more and more plausible. Even U.S. President Trump seem to accept that Khashoggi is no longer alive.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Do you believe Jamal Khashoggi is dead?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: It certainly looks that way to me. It's very sad bad. It certainly looks that way.

UNIDENTIFIED MALE: What are you considering for possible consequences for Saudi based on those--

(CROSSTALK)

TRUMP: Well, it would have to very severe. I mean, it's bad stuff but we'll see what happens, OK.

(END VIDEO CLIP)

HOWELL: Keeping in mind those comments made by the president after he was briefed by the U.S. Secretary of State Mike Pompeo. Pompeo who just returned from Saudi Arabia and Turkey.

ALLEN: Yes. we get more on that and the U.S. response so far from CNN's Alex Marquardt.

ALEXANDER MARQUARDT, CNN SENIOR NATIONAL CORRESPONDENT: Back in Washington after whirlwind trip to Saudi Arabia and Turkey.

(BEGIN VIDEO CLIP)

MIKE POMPEO, UNITED STATES SECRETARY OF STATE: I had the chance to talk within in Riyadh with the king, with the crown prince.

(END VIDEO CLIP)

MARQUARDT: Secretary of State Mike Pompeo was expected to tell the president what answers he'd gotten about the death of Jamal Khashoggi. Instead, the message was let's wait and see for the results of a Saudi investigation into themselves.

(BEGIN VIDEO CLIP)

POMPEO: I told President Trump this morning that we ought to give them a few more days to complete that so that we too have complete understanding of the facts surrounding that at which point we can make decisions about how the United States should respond.

(END VIDEO CLIP)

MARQUARDT: Pompeo came under fire after this chummy scene with Crown Prince Mohammed bin Salman, also known as MBS. But a source tells CNN that behind closed doors those smiles ended when the cameras left. Pompeo then told MBS he'd have to own the situation or the U.S. will take action because the world will demand it.

And the vice president today saying the U.S. won't just settle for the Saudi's findings.

(BEGIN VIDEO CLIP)

MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: When we have that information and we won't solely rely on that information we'll collect all the evidence and then the president and I have a decision to make about what the proper course of action is for us going forward, but the world deserves answers.

[03:10:06] GERALD FEIERSTEIN, FORMER U.S. AMBASSADOR TO YEMEN: The problem that the administration has is that the president through his public statements has cast doubt, particularly here in Washington whether or not those serious (AUDIO GAP) were actually delivered.

(END VIDEO CLIP)

MARQUARDT: This as new images released by Turkish media from security cameras allegedly of another of the 15 men team that flew in from Saudi Arabia. Maher Abdulaziz Mutreb is a diplomat and intelligence officer who sources say played a pivotal role in Khashoggi's apparent assassination. Mutreb has been spotted several times before in MBS's traveling entourage, one more link to the embattled crown prince.

(BEGIN VIDEO CLIP)

BOB BAER, CNN INTELLIGENCE AND SECURITY ANALYST: Mohammed bin Salman, the crown prince runs all the security services. He runs the military, the economy, he's an autocrat. It is known to be particularly cruel.

(END VIDEO CLIP)

MARQUARDT: The only concrete action the Trump administration has so far taken after the horrific apparent murder is Treasury Secretary Steven Mnuchin, tweeting he will not attend an investment conference in Riyadh next week.

Well, lately joining the already long list of business and political leaders who have pulled out ads the world waits for an explanation from the Saudi's.

The delay in an official (AUDIO GAP) from the Saudi is only refueling (AUDIO GAP) still working on their cover story. Meanwhile, the family of Jamal Khashoggi has put out a statement saying they have not yet resigned themselves to the fact that he is dead. They say in their minds he is still missing since there has been no official proof otherwise.

Alex Marquardt, CNN, Washington.

ALLEN: Now the story we're following very closely. A caravan of migrants is approaching the U.S. border with Mexico and President Trump is warning he will shut the border down if Mexico cannot stop the flow of many of these people. Right now, thousands are traveling north through Central America. They

hope to apply for humanitarian visas in Mexico that will let them into the United States. But the Trump administration is telling Mexico to stop these people before they get to the U.S.

Secretary of State Mike Pompeo is meeting with leaders in Mexico City Friday to drive that message home. Earlier, he welcomed Mexico's decision to get help from the U.N. refugee agency to process the migrants. President Trump, meantime, is blaming the whole thing on Democrats.

(BEGIN VIDEO CLIP)

TRUMP: As you know I'm willing to send the military to defend our southern border if necessary.

(APPLAUSE)

TRUMP: All cause because of the illegal immigration onslaught brought by the Democrats because they refuse to acknowledge or to change the laws, they like it. They also figure everybody coming in is going to vote Democrat.

(END VIDEO CLIP)

HOWELL: Well, the president's claim there. In the meantime, his Chief of Staff and his national security advisor are reportedly at odds over U.S. immigration policy.

ALLEN: An odd that's putting it mildly from what we hear happened, a source tells CNN their disagreement is so heated it led to a shouting match in the White House.

CNN's Kaitlan Colin has more about it.

KAITLAN COLLINS, CNN WHITE HOUSE REPORTER: Well, what we know is that an argument between John Bolton and John Kelly turned into a screaming match in the West Wing while the two top aides to President Trump were discussing a recent surge in border crossing.

That's something we know has bothered President Trump. He's even at one point threaten to shut down the border. But things got the ugliest when John Bolton and John Kelly were discussing it, and even at one point when John Bolton criticize the DHS Secretary Kirstjen Nielsen saying essentially that she wasn't doing her job.

I'm told by sources inside the White House that that set Kelly off because Nielsen is his protege essentially and he is the one who persuaded President Trump to nominate her to leave the DHS in the first place.

Now President Trump was there from the beginning of this argument, he actually sided with John Bolton agreeing with his sentiment about what Nielsen is doing at DHS and that just anger John Kelly even more.

And I'm told this fight was so bad that it left some wondering if John Kelly would resign over it. That's how bad this fight was. It wasn't a typical fighting even in a divisive West Wing like this. And one person equated it to a falling out.

Now we reached out to the White House for comment they issued a statement a few hours later with Sarah Sanders saying that, "While we are passionate about solving the issue of illegal immigration we are not angry at one another." She goes on to blame the issue on congressional Democrats but nowhere in that statement does she deny that this very heated argument at times profanity-laced took place between the chief of staff and the national security advisor.

Kaitlan Collins, CNN, the White House.

HOWELL: Kaitlan, thank you. One of the most powerful and controversial figures in Afghanistan were shot and killed in Kandahar. The police chief of Kandahar province had just met with a top U.S. commander when the attack began. The U.S. says the commander was not hurt. And the assailant was killed by American forces.

[03:15:05] The Taliban have claimed responsibility, but the police chief had many enemies as he waged a campaign against the Taliban.

Last year the U.N. said that he should be prosecuted over allegations of torture. He was accused of extrajudicial killings and human rights abuses.

ALLEN: The attack comes as Afghans prepare for a long delayed parliamentary election this weekend.

CNN's Nick Paton Walsh has more on the vote.

HOWELL: And we do warn you this report does contain disturbing video.

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT: Elections in Afghanistan on decorative for the worse kind of good news here. This flurry of campaign posters proof that the country is still technically a democracy albeit one where voting carries deadly risk. But it's also a time when violence spikes as insurgents try to disrupt the process that is best make do and is already been delayed for years.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): We want the election to be held on time and it is the responsibility of the government to remove all security concerns and provide the ground for people to vote in the elections.

(END VIDEO CLIP)

WALSH: Startlingly on Thursday the top U.S. commander in Afghanistan, General Scott Miller narrowly escaped when an Afghan gunman at the southern region of Kandahar stopped police (AUDIO GAP) right by him in a maximum-security compound. Two Americans and another coalition member were also wounded in the remarkable security breach.

A toll ahead of the vote mounts a Helmand candidate for parliament Jabar Qahraman was killed with three others Wednesday by a bomb at his campaign office. So, Afghans weigh death tolls not polling and debating whether to vote, even though there are many younger candidates hoping to bring change this time.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): I am one of those who was very optimistic about the upcoming election because there are many candidates who are well educated have great ideas, new thoughts and good policies.

(END VIDEO CLIP)

WALSH: Nearly a third, though, of the 7,000 polling stations have been closed for safety and some were in towns where there are more registered voters than actual residents (AUDIO GAP) the first time specifically (ASUDIO GAP) as people and voters to stay away from the schools use as polling booths.

Afghanistan's parliament has long been accused of corruption and has limited power but its political host trading underpins the national unity government that's technically in charge but really overshadow by President Ashraf Ghani.

And unless this vote goes really well few believe next year's key presidential vote will carry authority.

The last thing the U.S. needs now the Taliban control more territory since their arrival. Record numbers of Afghan soldiers and civilians are dying and there are near record numbers of U.S. bombs being dropped.

(BEGIN VIDEO CLIP)

TRUMP: We will win.

(END VIDEO CLIP)

WALSH: The U.S. strategy is to show military strength but find a peace deal. Elections like these determine what sort of Afghanistan they might eventually leave behind and whether 17 years of war is worth it.

Nick Paton Walsh, CNN, London.

HOWELL: Still ahead, the growth rate in China has slowed. Ahead, we'll take a look at what happened.

ALLEN: Also ahead here, it's not just the multinationals in London nervous about Brexit. Smaller company deep and leave country have their own concern and we'll take a look at that.

You're watching CNN Newsroom.

[03:20:00] (COMMERCIAL BREAK) HOWELL: Welcome back to Newsroom. The world's second largest economy looks to be slowing down. China say its GDP grew 6.5 percent in the third quarter.

ALLEN: Now many countries would envy that number, but it's China's weakest quarterly growth since 2009. This time last year China was reporting 6.8 percent.

HOWELL: What you make of it, what to make of it. Let's talk now to CNN's Andrew Stevens. Andrew is following the story live in Hong Kong. Andrew, so look, that's certainly this is not something that China was looking for. Is there a sense that there could be a more disappointing numbers to come?

ANDREW STEVENS, CNN CORRESPONDENT: Yes, I think it's fairly clear, George, that the trend of growth from the Chinese economy is heading down. That 6.5 percent that's the lowest. You had to go back to the dark days of the (AUDIO GAP) and that sort of growth in China and (AUDIO GAP) it was a bit of a stand up (AUDIO GAP) during that crisis.

But the really what's been happening in China is a crackdown from the top on the level of debt in China. It says about three times the size of the Chinese economy, 300 percent of GDP. It is a very big number.

The Chinese senior leadership are worried very, very much about the level of debt and for the last couple of years they've been implementing a program to bring that down. That means less money for infrastructure, less money for property investments, et cetera, et cetera. And we are seeing that slow down as a result of that.

This is not about the trade war yet, but the question becomes once the really big trade tariffs start kicking in on China and demands starts paying (Ph) out there and exports slow down, they are holding up pretty well at the moment. Once they start slowing down China is going to see the economy weaken further.

The question becomes what (AUDIO GAP) to prop it up. But at this stage most economists will tell you the trend is heading down. China says 6.5 percent for the four-year growth, so it's in the target zone but it could go below that.

HOWELL: OK. So, you mentioned there this is not about the U.S. trade war with China, vice versa. The impact to be felt later. But the question, Andrew, is there concern that the impact could be significant when it does come around.

STEVENS: Yes, it could be. At the moment, as I said and that was not reflecting it, George. The biggest tariffs that the U.S. sort of impose on China really kicked in at the end of September, which doesn't really reflect in these numbers. So that will be coming after the next numbers.

And on top of that we've got this pledge from the U.S. administrations that they are going to lift tariffs on $200 billion worth of Chinese exports from 10 percent to 25 percent on (Inaudible) the first next year if the Chinese don't change their ways. There nothing -- there's nothing to suggests that the U.S. won't go through with that.

Now China as we know is a big export economy. It is a powerful driver of growth in across the country, not as big of driver's growth though as investment, infrastructure spending, et cetera, et cetera. So, there will be that impact on the exports which will follow through to the broader economy.

The Chinese have quite a few tools in their chest to offset that slow down. They can pump more money into the economy, but they don't particularly want to, given that the debt levels are this high. But at the end of the day, George, it's as much more control economy than the U.S. The Chinese have more labors and they will certainly won't want to see growth get uncontrollably low which would threaten their own existence.

[03:24:54] HOWELL: These two economies deeply intertwined. We'll of course see how all this plays out. Andrew Stevens live for us in Hong Kong. Thank you very much.

ALLEN: The Brexit timetable may be flipping. On Thursday, the European Union said it was ready to extend the transition period to 28 months. The original plan called for just 21 starting as soon as the U.K. leaves the E.U. in March.

British Prime Minister Theresa May says she hopes an extension will not be needed.

HOWELL: Now multinational companies, not just those are concerned in London about the possibility of a Brexit no deal.

ALLEN: Smaller companies are also paralyzed by the uncertainty. For more about here's CNN's Nina Dos Santos.

NINA DOS SANTOS, CNN CORRESPPONDENT: The Brexit way giving up to hit businesses in this coastal Englishtown hard.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The biggest problem of Brexit at the moment is we have no idea what it is It could be anything on this very wide spectrum.

SANTOS: Peter Philips is the CEO of a company that develops online corporate training programs in Bournemouth, a place that voted to leave the E.U. by 55 to 45 percent.

Get the since that anecdotally people have changed their minds.

UNIDENTIFIED MALE: Almost everybody including the Brexiteers agreed that every option on the table now is worse than staying where we are but it doesn't seem to necessary change people's minds.

SANTOS: Businesses like his have rejuvenated the town in recent years transforming it through a sleepy seaside city to a vibrant London alternative is now home to dozens of digital startups design firms and a J.P. Morgan office that employs more than 4,000 people. UNIDENTIFIED MALE: It is France's this hub and it's a high-tech hub with lots and lots of small businesses and I think both of those (Inaudible) are going to be (Inaudible) by Brexit.

SANTOS: As British Prime Minister Theresa May comes back from Brussels with out of Brexit solution some businesses here are considering leaving the U.K. before the U.K. leaves the E.U.

DUNCAN MCWILLIAM, FOUNDER AND CEO, OUTPOST VFX: My employees want to know what's going on in the next year, they want to know if they are safe here.

SANTOS: Outpost VFX works on some of Hollywood's biggest blockbusters. The visual effects outfit employs 70 people and plans to add another 30 more staff at least. But if May's final Brexit deal fails to grant them freedom of movement it will Barcelona the company expands in not Bournemouth.

MCWILLIAM: Thirty percent of my workforce and the U.K.'s that affect workforce is made up of E.U. citizens. Anything that slows down the employment of a movable workforce is a massive problem to me.

SANTOS: And so, with Brexit edging closer and no deal in sight small enterprises in Bournemouth and beyond are visualizing their future across the channel.

Nina Dos Santos, CNN, Bournemouth.

HOWELL: Nina, thank you for the report. We just spoke a moment ago about the U.S.-China trade relationship tensions (AUDIO GAP) so there are military concern to tell you about (AUDIO GAP) as (AUDIO GAP) the defense chiefs from both countries met just hours ago as things out the differences between the nations.

ALLEN: We'll have that coming up. What thousands of Rohingya have been living in filthy refugee camps and Myanmar told they would only be there for a few weeks. That was in 2012. Our Matt Rivers got a rare access to speak with them and we'll have the story for you as we continue.

[03:30:00] (COMMERCIAL BREAK)

NATALIE ALLEN, CNN NEWSROOM SHOW HOST: Welcome back you are watching CNN Newsroom live from Atlanta. Thanks for being with us, I'm Natalie Allen.

GEORGE HOWELL, CNN NEWSROOM SHOW HOST: And I'm George Howell. With the headlines we are following this hour.

ALLEN: Also tells CNN HANKS: Turkish authorities reacted within hours to the disappearance of Saudi journalist Jamal Khashoggi. And suspected he had been killed, even the U.S. president now seems to accept that likelihood. When asked on Thursday if Khashoggi was dead, Donald Trump replied, certainly looks like that way to me.

HOWELL: In Afghanistan the police chief of the nation Kandahar province. (Inaudible) has been shot and killed. Afghan official say they just met with the top U.S. commander when a gunman open fire, the U.S. said the commander was not hurt. And the assailant was killed by American forces.

Looks like the world second largest economy is slowing down. China says its GDP grew 6.5 percent in the third quarter. Last year China reported 6.8 percent growth, the country's weakest poorly growth since 2009. We have this news also in CNN for the United Kingdom.

British media report a radical Islam's preacher has been released from a high security prison in London. Anjem Choudary was sentenced to 5 1/2 years. In 2016, he left a flag burning demonstration outside the U.S. embassy on the anniversary of the 9/11 attacks. Voiced support for Jihad and was jailed for inviting support for ISIS. Choudary had been scheduled for release under strict conditions, having served half his sentence. He has been called Britain's most hated man.

ALLEN: We turn to Singapore now, U.S. secretary of defense James Mattis has got together with his Chinese counterpart (inaudible), reportedly both trying to ease tension between Washington and Beijing.

HOWELL: The pair met on the sidelines of the Association of Southeast Asian nations for just hours ago the Chinese government requested the meeting and both sides spent significant time discussing the South China Sea. This according to U.S. defense official. Earlier this month, Secretary Mattis called off the trip to Beijing to meet with Mr. Way amid rising tensions on multiple fronts between both countries.

ALLEN: Let us bring in Carl Schuster to talk about it, he is a visiting assistant professor of history at Hawaii Pacific University. He also has more than 30 years of professional experience in the U.S. Navy specializing in intelligent. Thanks so much for speaking with us professor. First I want to talk with you about China and its Navy, it has built up its Navy tremendously. Could you tell us about that and what it behind it?

CARL SCHUSTER, PROFESSOR OF HISTORY, HAWAII PACIFIC UNIVERSITY: Yes, mam. They had a 30 year upgrade expansion and modernization program that started in the mid-80s and it has gone from using imported technology to developing their own indigenous technology. Their warships now approaching, if not on a par with those the best in the West and is a source of great national pride. Much of it driven by their view of history, they believe that the fall of man to them part of the century of humiliation was triggered by either ignoring the maritime threat and so they feel they must have a strong Navy to prevent that sort of interference.

The other issue of course is they are now a global trading nation 44 percent of China's economy is based on foreign trade and so they see a Navy as the best means of not only protecting that trade but illustrating their interest in the global arena, if you will.

ALLEN: how does this affect the U.S. Navy? Mattis just met with his counterpart. They are staying or we are just going to continue on as usual. And that means coming very close in waters that the U.S. is not dispute to tiny war machines now and the waters there. This is something that the United States had to deal with, has it?

[03:35:00] SCHUSTER: Yes, mam. The strategic implications are China's claims in the South China Sea would give them control over 85 percent of the water in the airspace over it and over 30 percent in terms of monetary value of global trade passes to those waters of the more immediate interest to the U.S. is it would give China chokehold on 24 percent of Japan's trade nearly 25 percent of Taiwan's and as equal percentage of South Korea's. It will also give them a chokehold on Philippines mercantile trade as well as blocking Philippines, Vietnamese fishing in those waters as well as Malaysian and Indonesian. Although in the latitude countries to a lesser extent, so that is just strategic implications.

Now the mechanisms involved is of course those smaller nations were not in a position really to challenge the Chinese Navy, have asked us to maintain those waters in their space in their traditional international status. That is what we've been doing.

ALLEN: I want to ask you though, I want to ask you about -- what are the dangers here. We do know that two U.S. bombers came close to these islands very recently, a Chinese destroyer came within 45 yards at an American warship. So one could go wrong, could this escalate negatively?

SCHUSTER: Yes, it could. The beauty of B-52 of course is a general rule, countries may intercept an escort -- a combat aircraft like the B-52, but they won't do dangerous aerial maneuvers around them because of the geopolitical military implication. On ships on the other hand, remember on an international law, you only have the right to defend.

So when you want to maneuver a ship out of waters. You don't want them in, you take one, two courses, you warned them because if you don't warn and you don't tell them it is your waters therein. Then that is tacit surrender of your sovereignty over those waters or your claim to those waters. And so they issued the warnings, our ships continued to transit there, because we have the right and a need to maintain their freedom of navigation, so the aggressive maneuvering, our bumper drills, we used to call them in the Navy is designed to force you out of those waters and deter any subsequent ships from going into those waters.

The risk of collision is also very stressful dealing with the bumper drill and so the idea is that they send a message, you are going to be harassed if you go into these waters just like they sometimes harass our reconnaissance aircrafts. Messing with the reconnaissance aircraft, has less implication than messing with the combat aircraft and so, they are trying to turn you from going into that airspace.

Now for the show say -- I'll say there's the initiating country which in this case is China and the victim ship both have a need to maintain safety navigation and safety of their ship or aircraft, and so becomes a clinical decision. We continue to go in, there is always a risk of collision. As we saw 2001 when the Chinese fighter pulled up too soon in front of EP three and as you saw with the bumper drill two weeks ago. 45 yards seems like a great distance when you're up walking on a

sidewalk, but for a ship in water that is very, very close and very dangerous, the collision would inflict thousands if not million dollar worth of damage. And also there is chance of injury and death.

ALLEN: Yes, another react to watch closely between the U.S. and China. We thank you so much for your expertise. That was very interesting Carl Schuster, thanks so much.

SCHUSTER: Thank you for having me.

HOWELL: Out of the plight of the Rohingya Muslims more than 700,000 Rohingya escape Myanmar, since August last year. Surviving a military operation that a U.N. report described as genocide. CN's Matt Rivers and his team received rare accessed Myanmar government to meet with some of the Rohingya Muslims still living in Rakhine State.

ALLEN: The tour apparently an attempt by Myanmar to condense that world they did not commit genocide. Despite the mountain of evidence collected by the United Nations and others.

HOWELL: The special report by our Matt Rivers. Matt live in Beijing this hour with more. Matt tell us more about what you learn, what you saw.

MATT RIVERS, CNN CORRESPONDENT: One of the aspects of our trip. We were actually taken to a camp for refugees well, for now they are not refugees, they are internally displace persons, but they are Rohingya people that are in camps inside Myanmar, right now. They're not part of the group of Rohingya that had to flee because of last year's violence.

These people have been in camps for years now after violence that took place in 2012 and so with the Rohingya that had left the country look at the possibility of returning, they (inaudible) scans as a sort of bell weather, what could had happen to them if they comeback. They certainly don't like what they see.

(BEGIN VIDEO)

[03:40:10] RIVERS: Hundreds of thousands of Rohingya fled to Bangladesh in 2017 after violence to U.N. cause a genocide. Well, Myanmar's government tells the refugees to comeback to this place as a possible future many are afraid of.

This is a refugee camp well south of where the killing happen. These people are Rohingya too. A Muslim minority.

UNIDENTIFIED MALE: It is like an open prison, how long to they have to be there in the prison.

RIVERS: We obscure this man's identity so he could speak openly. He and other Rohingya came here in -- violence broke out in Rakhine. They were told that be set to three weeks. It's been six years.

UNIDENTIFIED MALE: How long should we have to be here? RIVERS: In the camps there is no jobs, no education, no healthcare.

They live in bamboo huts with no electricity, and on stagnant water. The conditions here are visibly terrible. And yet there are more than 100,000 people in camps like this throughout this area. They were never supposed to be here this long.

The Burmese government has said that they plan to shut down these camps amongst growing international pressure and yet so far there are no concrete signs that are doing so in a responsible way.

The state of Rohingya are widely despise by dominant ethnic Buddhist groups and are recognized the citizens by the government. So Myanmar governments makes familiar promises to the refugees in Bangladesh come back, live in a temporary camp and then go home. People don't believe it.

UNIDENTIFIED MALE: I would tell them to come back is not right time to come back.

RIVERS: There's clear mistrust and his credible claims of mass killing torture and rape last year or true.

We are given an armed escort by local police everywhere we go, they say it is for our protection and that is partly true, but it is also true that this guys are here to make sure that we don't go anywhere they don't want us to.

But even then it's not hard to see why Rohingya don't want to be in a place where no one should be forced to live.

(END VIDEO)

RIVERS: And George and Natalie, even if you set aside this whole issue of camps there are other things preventing the Rohingya from coming back. Start with citizenship issues even though they lived in Myanmar for decades. Rohingya people are still not given citizenship in Myanmar, nor the rights that would come with that. Perhaps most importantly, they are still fearful for their lives if they were to come back, because the security forces that will be in charge of their repatriation are some of the same people accused of carrying out what the U.N. calls genocide in the first place. So for all of those reasons combined. There is no board and hundreds of thousands of refugee likely remain in limbo for a long time to come.

HOWELL: Matt Rivers on the story live for us in Beijing. Matt thank you for your reporting.

ALLEN: And still to come here the politics of pride.

HOWELL: Democrats hope energy from the LGBT committee to translate into votes during the upcoming midterm elections.

[03:45:00] (COMMERCIAL BREAK)

ALLEN: Here in United States, we are just 18 days away from the U.S. midterm election and activists from both political parties are trying to motivate supporters as you can imagine the turnout at the polls.

HOWELL: That is right. Democrats are counting on the LGBT community as long as they show up on our election. CNN's Robyn Curnow reports.

(BEGIN VIDEO)

ROBYN CURNOW, CNN CORRESPONDENT: A pride -- (BAD AUDIO) and this one in Atlanta made a big visible statement with this rock star for Democrats Stacy Abrams. He is running for governor of Georgia and no other major candidate like her had join in the parade before. Also here more than a dozen local politicians. The LGBT community is becoming an ever important voting block for Democrats. Even if some people voted for Donald Trump, like (inaudible) on her honeymoon from Kentucky with her wife. SO we met before the parade began.

UNIDENTIFIED FEMALE: I did vote for him. I don't regret my vote. I think that it was kind of a toss-up between the two, because I am typically Democrat.

CURNOW: And she plans on voting for Democrats this year.

UNIDENTIFIED FEMALE: I disagree a lot with the way he is running the country.

CURNOW: We are invited to a fundraiser for the largest LGBT rights group in the U.S. where activist, volunteers and voters gathered to watch the parade.

UNIDENTIFIED MALE: As a black bi-men, I think that it is very important that we have political presence at pride to not only show our voting power at the LGBTQ community but also form coalition where other marginalize community.

CURNOW: Even here a small group of anti-gay protest is gathered to parade with the parade goers. And despite recent gains in gay right, many people we talked to said equality was still a top election priority.

UNIDENTIFIED MALE: Equality for all LGBT people, the LGBT community, especially the (inaudible). People are really (inaudible) -- the most important task all my lifetime.

CURNOW: The community, the energy and everyone kind a sitting up and getting energized and motivated again. I am hoping all this energy translate into votes. Many people are already (inaudible) today.

UNIDENTIFIED MALE: Are you ready to make some history?

CHURCH: Chad's group is one of the most high-profile gay activist in America. He is rallying volunteers to knock on doors for the Democrats tickets.

UNIDENTIFIED MALE: Around the country, there are 10 million eligible LGBTQ voters, when we turn out. We win election. Often times in the off year elections. There is depth in turnout with LGBTQ voters with voters of color with women voters, we are working hard to make sure that's not the case this year.

UNIDENTIFIED MALE: I want to physically actively do something.

CURNOW: Opposition to Donald Trump -- the appointments of Supreme Court Justice Kavanaugh had these tow volunteering for the first time.

Despite the sense of Democratic momentum on the streets. Races are tightening.

UNIDENTIFIED FEMALE: I think my biggest fear is that the energy in that position. I feel maybe isn't felt around the country and we are going to not see the blue wave that we are hoping for, that would be very realizing.

CURNOW: Not all feel that way. Many in the gay community as we are approaching this election with a renewed mission, Robyn Curnow, CNN, Atlanta.

(END VIDEO)

ALLEN: Next we will take you to Australia will go down under to see Prince Harry climbing new heights all for a good cause.

[03:50:00] (COMMERCIAL BREAK)

HOWELL: Britain's Prince Harry is in Australia and he is bringing attention to some of his favorite causes. Earlier the climbed the Sydney Harbor Bridge, take a look at that, the top he raise the flag for the Invictus games the games in Olympic style tournament that he started for military personnel wounded in action. The competition opens on Saturday in Sydney.

ALLEN: It's Harry and Megan's first trip as Duke and Duchess of Sussex, and before his climb they spent time with surfers on the beach, for an event to raise awareness for mental health issues. The couple are on a 16 day tour of Australia and the South Pacific.

Hannah Sinclair, joins us from our Australia affiliate FBS, she is there Sydnean (ph) yes we know that a big part of this trip was the announcement that Meghan is now pregnant. That part a trip, but also Harry climb the bridge there behind you and I must admit I was a little nervous for him. Good to know he is going to be a father.

HANNAH SINCLAIR, REPORTER, AUSTRALIA AFFILIATE FBS: Well, there is certainly many memorable moments of this world tour and I think some people would certainly been holding their breath there. There are plenty of steps to the top of the harbor bridge that was rest assured the Prince was in safe hands. He was with the many professionals. Meghan wasn't with him on these particular role. He was joined by the Prime Minister Scott Morrison and some of the competitive that will be competing in the Invictus game that get underway tomorrow. The flag for that official event was hoisted up and nearly above Sydney harbor. A very special event, one that is close to Prince Harry heart in the real reason that I'm coming down under for these world trip. He was chatting to the various -- he was walking up the bridge with and he didn't tainted to look nervous. He is kind of a cool with his sunglasses, certainly a nice day here in Sydney, plenty of sun and the weather has come out for the world spectacular photographic opportunity.

ALLEN: Right and Hannah it has been there first trip as husband and wife of course the exciting news that she is expecting, so how is it going for them?

SINCLAIR: Look, it is really just been a tour of very memorable moments so far. A lot of the people that we spoke to just commented on their interaction with each other. Between Prince Harry and Meghan; they just appear to be so in love and really enjoying their time here in Australia. Mingling with the crowds today, they had so much time for all the people that lining up many people from very early in the morning, this morning at Bondi Beach, thousands of people were up against barricade just hoping to catch a glimpse and a lot of the official had been actually running behind schedule, just because they are being so generous with their time.

And they are also really trying to draw attention to issues that they really care about. Prince Harry has really made note -- bringing attention to mental health awareness. And this morning on Bondi Beach they were with some surfers. A local surfing group called one wave, they were just in flurry colors, they are trying to bring attention in bright colors to the issue of mental health awareness and they really think to enjoy their time and they are on Bondi Beach.

HOWELL: All right. A lot of fun there in Australia for sure. Next story the cars on the streets of Paris. Nothing new there. But here's the thing cars without drivers, grab your seatbelts, autonomous cars are hitting the roads in Paris.

[03:55:00] ALLEN: The city is known for, let us call it challenging traffic, our Melissa Bell check out the self-writing technology while tagging along on a test drive.

(BEGIN VIDEO)

MELISSA BELL, CNN CORRESPONDENT: Autonomous driving were told in the way of the future. Autonomous cars featured heavily in this year's Paris motor show, but how can a computer deal with the random, the chaos of Parisian traffic. We decided to put that to the test.

Our co-pilot today our engineer developing the technology that has already being sold to carmakers and where better to start at the foot of the Eiffel tower.

There are a lot of cars driving itself?

UNIDENTIFIED MALE: Yes.

BELL: You are not involve at all.

UNIDENTIFIED MALE: No.

BELL: No pedals, no wheels?

UNIDENTIFIED MALE: No.

BELL: Which should be a dangerous thing given the cyclist, scooters and pedestrians. Not to mention the bad drivers who do have their hands on the wheel. They said the car sensors are more efficient than the human brain.

UNIDENTIFIED MALE: And as you can see there, pedestrian here and we are going to slow, because it detected and then when the pedestrian is off the crossing -=

BELL: It is program to stop.

UNIDENTIFIED MALE: Yes.

BELL: The technologies is part program, part learn. Through its many cameras, sensors, computers and radars. The car's artificial intelligence allows it to learn as it goes.

UNIDENTIFIED MALE: Just always focus on each own task which is driving safely from point a to point b.

BELL: So that car is very rude.

UNIDENTIFIED MALE: Yes.

BELL: It just cut across you and the car felt it. And it didn't even complain.

UNIDENTIFIED MALE: No.

BELL: There will always be an element of risk. Even for computers?

UNIDENTIFIED MALE: It is your fault does it exist, working on to show it that we are (inaudible) to drive to join one billion followers without any problem.

BELL: Perhaps the very surprising thing about all this is this is like it should be an evolution rather than a revolution already. All of the sensors that exist on this car and allow it to drive autonomously exist on sorts of cars that you would buy today. And so what likely to happen is little by little we will get on the habit of letting go of the steering wheel until one day all cars even here in the French capital drive themselves. Melissa Bell, CNN, Paris.

(END VIDEO)

HOWELL: How will that fare going around (inaudible). Thanks for being with us. CNN Newsroom, I'm George Howell.

ALLEN: I am Natalie Allen, the news continues with Max Foster in London. Thank you for watching, CNN.

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