The MacNeil/Lehrer NewsHour (PBS) - 1992-07-29
Channel: malgent
Transcript
Language: English (original, YouTube automatic captions)
[0:07] Good evening. I'm Jim Lara in
[0:08] Washington. And I'm Judy Woodruff in New
[0:11] York. After the news summary, we take a
[0:13] close look at the indictments against
[0:15] Washington movers and shakers Clark
[0:17] Clifford and Robert Alman for their role
[0:19] in the BCCI banking scandal. Then,
[0:22] Elizabeth Brackett reports on efforts to
[0:24] stop dads from skipping out on child
[0:27] support. Next, Europe's latest refugee
[0:30] crisis. What to do with two and a half
[0:33] million displaced citizens of
[0:35] Yugoslavia. And finally, an Amaiwall
[0:38] essay about the living art of Pablo
[0:40] Picasso.
[0:43] Part of helping the world live and
[0:45] communicate better is keeping it well
[0:47] informed.
[0:50] That's why funding for the McNeel Lair
[0:52] NewsHour is provided by AT&T
[0:57] and by PepsiCo
[1:04] Pepsico
[1:06] and by the Corporation for Public
[1:08] Broadcasting and viewers like you. Clark
[1:12] Clifford was indicted today on bribery
[1:15] and other charges growing out of the
[1:16] BCCI banking scandal. So was his law
[1:19] partner, Robert Altman. Clifford is the
[1:22] 85year-old former defense secretary and
[1:25] adviser to Democratic presidents. He and
[1:27] Alman, who is 45, were charged in
[1:30] separate New York State and federal
[1:32] indictments. The state charges were for
[1:34] bribery and for lying about BCCI's
[1:37] secret ownership of the Washingtonbased
[1:39] First American bank shares. Clifford was
[1:42] the bank's chairman, Altman its
[1:44] president. The federal charges were for
[1:46] enriching themselves through secret
[1:48] sweetheart loans, among other things.
[1:50] Clifford and Alman issued a written
[1:52] statement saying the indictments were a
[1:54] result of mean-spirited suspicion and
[1:57] unfounded speculation. They said there
[1:59] was no credible evidence of any
[2:01] wrongdoing. We'll have much more on this
[2:03] story right after the news summary.
[2:04] Judy,
[2:05] >> the United Nations inspection of Iraq's
[2:08] agriculture ministry in Baghdad ended
[2:10] today. The inspectors found no weapons
[2:13] related documents or materials in the
[2:15] building. What they did find were signs
[2:17] that materials may have been removed
[2:20] during the 3-week delay in getting
[2:22] access to the building. We have a report
[2:24] narrated by Vera Frankle of Worldwide
[2:26] Television News.
[2:28] The UN inspectors have almost
[2:30] predictably drawn a blank. Nothing
[2:32] relating to Iraq's weapons programs was
[2:34] found inside the Agriculture Ministry.
[2:37] But the inspectors are concerned that
[2:38] some important material might have been
[2:41] spirited out of the building during the
[2:43] 17-day standoff.
[2:45] It's been a difficult time for the head
[2:47] of the UN Commission, Ralph Caes, and
[2:49] his team. Their first attempt to get
[2:52] into the ministry building was
[2:53] frustrated by the Iraqi authorities and
[2:56] stalemate followed.
[2:57] Saddam Hussein relented only after
[2:59] winning concessions from the UN. A new
[3:02] inspection team drawn from what he
[3:04] regarded as neutral countries was
[3:06] finally allowed into the ministry. The
[3:08] Iraqis have done their best to ridicule
[3:10] the inspector's efforts. A television
[3:12] broadcast highlighted their search of
[3:14] unlikely places and also the burgling
[3:16] techniques they used to get past locked
[3:18] doors.
[3:20] Saddam claims to have won the showdown.
[3:22] He was even seen on television taking a
[3:25] symbolic victory dip in the river
[3:27] Tigris. The US today accused Iraq of
[3:30] continuing to defy the UN ceasefire
[3:33] agreement with repeated attacks on its
[3:35] Shiite population. The US is preparing a
[3:38] new UN Security Council resolution
[3:41] demanding Iraq stop the attack. The US
[3:44] ambassador to the UN said the new
[3:46] resolution could come before the council
[3:48] within the week. Meanwhile, Secretary of
[3:50] State Baker met in Washington with Iraqi
[3:53] opposition leaders. The Shiite, Sunni,
[3:56] and Kurdish leaders have appealed for US
[3:58] economic aid to help them in their
[4:00] effort to ou Saddam Hussein.
[4:03] >> The US reportedly will send Patriot
[4:06] anti-aircraft missiles to Bahrain this
[4:08] week. Pentagon officials told the
[4:10] Reuters news agency the missiles will
[4:12] protect moderate Gulf states from
[4:14] possible attack by Iraq. They said Iraq
[4:17] may still have some Scud missiles left
[4:20] over from the Gulf War. The move follows
[4:23] a shipment of Patriots earlier in the
[4:25] week to Kuwait.
[4:27] >> The United Nations had an emergency
[4:29] meeting in Geneva today to deal with the
[4:31] Yuguslav refugee crisis. Officials said
[4:34] up to a half a million refugees could be
[4:36] stranded without food and water this
[4:38] winter. More than 2.5 million people
[4:41] have been displaced by the fighting.
[4:43] We'll have more on the refugee story
[4:44] later in the program. 21 UN trucks with
[4:47] relief supplies arrived in the Bosnian
[4:50] capital today. It was the first major
[4:52] aid convoy to reach Sievo by road. It
[4:55] came from Croatia and was carrying about
[4:58] 170 tons of food. Also today, the first
[5:01] group of about 1,000 Canadian UN
[5:03] peacekeepers pulled out of the city.
[5:05] They will be replaced by Ukrainian and
[5:08] Egyptian UN forces protecting relief
[5:11] flights at the Sieo airport.
[5:13] The Bush administration policy of
[5:16] intercepting Haitian refugees at sea was
[5:19] declared illegal today by a federal
[5:21] appeals court in New York. The court
[5:23] ordered an injunction be granted,
[5:25] preventing the Coast Guard from
[5:27] returning refugees to Haiti without
[5:29] first giving them a hearing on asylum.
[5:32] The administration announced its
[5:33] forcible repatriation policy in May.
[5:36] Some 30,000 Haitians have fled the
[5:39] country since President Jean Bertron
[5:41] Aristid was overthrown last September.
[5:44] >> The Ford Motor Company today reported a
[5:47] $52 million profit for the second
[5:49] quarter of the year, its best earning
[5:51] showing in two years. It had lost more
[5:54] than $300 million during the same period
[5:56] a year ago. Ford Chairman Harold Polling
[6:00] said he remained concerned about the
[6:02] rest of this year because the economy is
[6:04] quote still fragile. Yesterday, Chrysler
[6:07] Corporation also reported a second
[6:09] quarter profit. Former East German
[6:12] leader Eric Hanukkah returned to Germany
[6:14] today to face trial. The 79year-old
[6:17] communist had been in Moscow since he
[6:20] was ousted from office by pro-democracy
[6:22] forces 17 months ago. He is accused of
[6:25] ordering the deaths of hundreds of East
[6:27] Germans trying to flee to the West.
[6:30] Anukah ruled East Germany for 18 years.
[6:33] >> And that's it for the news summary
[6:35] tonight. Now it's on to the BCCI
[6:37] indictments, deadbeat dads, Yuguslav
[6:41] refugees, and an amiwalik essay.
[6:53] First tonight are some prominent
[6:55] indictments in the BCCI banking scandal.
[6:58] BCCI is the Bank of Credit and Commerce
[7:01] International, a 20 billion dollar
[7:03] financial institution that operated in
[7:06] more than 70 countries until last year
[7:09] when regulators around the world shut
[7:11] its doors amid charges of fraud and
[7:14] corruption. In the United States, law
[7:16] officials have focused on BCCI's illegal
[7:19] control of three banks, including First
[7:22] American Bank shares of Washington DC.
[7:25] Monday, one of the key figures in that
[7:28] takeover, a former head of Saudi Arabian
[7:30] intelligence, pleaded guilty to
[7:32] violations of banking laws. Today, two
[7:36] prominent Americans found themselves
[7:38] facing criminal charges for their
[7:40] alleged involvement with BCCI.
[7:44] 85-year-old Clark Clifford is one of the
[7:46] elder statesmen of Washington, an
[7:48] adviser to Democratic presidents from
[7:50] Truman to Carter, Secretary of Defense
[7:53] under Lynden Johnson. He was a power
[7:55] broker with an impeccable reputation
[7:57] until the BCCI scandal. His former law
[8:01] firm specialized in helping corporate
[8:04] clients find their way through the
[8:06] bureaucracy of the federal government.
[8:08] Clifford began representing BCCI in the
[8:11] late 1970s with the help of his young
[8:13] protetéé and fellow attorney Robert
[8:16] Alman. Altman is also well known in
[8:18] Washington social circles for his
[8:20] marriage to actress Linda Carter, star
[8:23] of the 1970s television series Wonder
[8:26] Woman. In 1977, Clifford and Alman
[8:29] represented Jimmy Carter's budget
[8:31] director Bert Lance before the Senate on
[8:34] ethics charges relating to Lance's
[8:36] alleged improprieties at his Georgia
[8:39] bank. Soon after, Lance introduced them
[8:42] to Pakistani banker Aga Hassan Abadi,
[8:46] founder of BCCI, who wanted to penetrate
[8:49] the lucrative American banking industry.
[8:52] Clifford and Alman then began to
[8:54] represent a group of wealthy Arab
[8:56] investors openly backed by BCCI.
[9:00] They were trying to take over a
[9:02] Washington bank company, Financial
[9:04] General Bank Shares. With federal
[9:06] regulators leerary, even then of BCCI's
[9:09] questionable banking practices, the
[9:11] efforts were unsuccessful.
[9:13] Then in 1981, Clifford and Alman went to
[9:17] the Federal Reserve with a new expanded
[9:20] group of Middle Eastern investors who
[9:22] wanted to buy Financial General. Still
[9:25] suspicious, regulators wanted to know if
[9:27] BCCI was behind the plan. Clifford
[9:30] assured them, quote, "I know of no
[9:33] present relationship with BCCI. I know
[9:36] of no future relationship." The deal
[9:39] went through. Clifford became chairman
[9:41] of the newly renamed First American Bank
[9:44] Shares. Altman was named president and
[9:47] their law firm was retained as general
[9:49] counsel to the bank, collecting legal
[9:51] fees of several million dollars. A 1991
[9:55] Federal Reserve report showed that many
[9:57] of the 1981 investors were acting all
[10:01] along as fronts for BCCI.
[10:04] Clifford and Alman answered that they,
[10:06] like everyone else, had been duped. But
[10:09] today, Clifford and Alman were indicted
[10:12] on both federal and state charges for
[10:14] allegedly concealing their knowledge of
[10:17] BCCI's involvement in First American and
[10:20] for enriching themselves through secret
[10:23] loans and other deals in the process.
[10:25] >> At the heart of today's indictment is an
[10:28] alleged conspiracy by Mr. Clifford and
[10:31] Mr. Alman to deceive federal banking
[10:33] regulators. In order to prevent the
[10:36] unraveling of Mr. Clifford and Mr.
[10:38] Alman's banking empire and to protect
[10:41] their millions of dollars in personal
[10:43] sweetheart loan transactions and stock
[10:45] transactions with BCCI.
[10:48] >> The Federal Reserve Board also announced
[10:51] that it was beginning proceedings to
[10:53] decide whether to bar Clifford and
[10:55] Altman from ever again working in
[10:57] American banking.
[10:59] This afternoon, Clifford and Altman
[11:01] pleaded innocent to the New York State
[11:03] charges and issued a written statement.
[11:06] Quote, "The bringing of these
[11:07] indictments is a cruel and unjust abuse
[11:10] of the prosecutorial function. Instead
[11:12] of these charges being based on reliable
[11:14] and credible evidence, they are the
[11:16] result of mean-spirited suspicion and
[11:19] unfounded speculation. The prosecutors
[11:21] have no credible, direct evidence of any
[11:24] wrongdoing by us. There are no smoking
[11:27] guns. We understand the prosecution's
[11:29] case is based entirely on circumstantial
[11:32] evidence. We totally and categorically
[11:35] deny all charges. These cases reflect an
[11:38] intense competition that developed
[11:40] between New York Justice and the Federal
[11:43] Reserve, each seeking public acclaim for
[11:46] their role in fighting BCCI corruption
[11:49] and to deflect criticism for past
[11:51] failings. We became the most visible,
[11:54] convenient targets for government bodies
[11:57] that wish to demonstrate that BCCR
[11:59] wrongdoers will be brought to justice.
[12:01] In the process, however, political
[12:04] considerations and public posturing have
[12:06] overwhelmed the merits of this matter.
[12:09] Disregarding the policies normally
[12:11] applicable to such cases, we are now
[12:13] confronted with multiple prosecutions by
[12:16] three powerful agencies which have
[12:18] enormous resources. We shall fight to
[12:20] establish our innocence and expose the
[12:23] distressing manner in which these
[12:25] agencies have conducted themselves.
[12:27] To respond to that and to lay out
[12:29] today's charges is the man who has led
[12:32] the ongoing investigation of BCCI's
[12:35] activities in New York. He is Manhattan
[12:37] District Attorney Robert Morgensoff. And
[12:40] Mr. Morgensoff, thanks for being with
[12:41] us. In layman's terms, what are the
[12:44] crimes that you are saying that and I'm
[12:46] asking you to put it in simpler terms
[12:49] than you would have today at at the news
[12:51] conferences.
[12:52] What crimes are you saying these six men
[12:54] committed and in particular Mr. Altman
[12:56] and Mr. Well, there they're two separate
[13:00] indictments.
[13:01] uh one involving uh Clifford and
[13:05] Northman uh Nakpi uh Abidi and Foulage
[13:11] and and they are charged with a scheme
[13:13] to defraud
[13:15] uh to defraud regulators
[13:18] u and depositors
[13:21] uh as to the true nature of the
[13:23] ownership and control of First American
[13:27] bank shares. And incidentally, First
[13:29] American Bank has 42 branches uh in New
[13:33] York. You can stand on the steps of the
[13:36] state capital in Albany and look east
[13:38] along Main Street and you'll see two two
[13:41] branches of of First American Bank. Then
[13:43] there is a second
[13:44] >> but the other those names you've
[13:45] mentioned, Mr. Naki and the others are
[13:47] foreign nationals.
[13:48] >> They are
[13:50] >> who were officials of BCCI. Uh no they
[13:53] were well you know Maki and and Abi were
[13:57] uh the third man Mr. Fage was a Kuwaiti
[14:01] businessman who was acting as a nominee
[14:04] we allege for uh for BCCI.
[14:08] Uh there's a second indictment
[14:11] uh which is an enterprise corruption
[14:14] indictment
[14:15] uh charging uh Abodi Naki uh Peron and
[14:22] Fage as being part of a corrupt
[14:24] enterprise
[14:26] uh whose purpose was to to
[14:29] gain money and power throughout the
[14:32] world by by bribing uh central bank
[14:35] officials in in in 10 countries.
[14:38] countries and in Pakistan and and in
[14:40] Sagal and and the Ivory Coast and the
[14:43] Argentine and and uh seven other
[14:46] countries um to get deposits um uh to
[14:51] defraud the International Monetary Fund
[14:53] and and the World Bank and and other
[14:55] banks
[14:56] >> and and again the the additional name in
[14:58] that second indictment is Mr. Ferrron
[15:00] who was a Saudi businessman
[15:02] >> right
[15:02] >> who was not specifically an official of
[15:05] BCCI but
[15:06] >> no he was he was the front man in
[15:10] acquiring the National Bank of Georgia
[15:12] and the Independence Bank and Enino
[15:15] California.
[15:16] >> What is this what is today what did
[15:18] today's indictments represent that go
[15:20] beyond what you and others were saying
[15:23] last year? I noticed that at one point
[15:24] in the in the press uh release, news
[15:27] release that your office put out that
[15:28] you said this is not just a criminal
[15:30] fraud enterprise. It's much more than
[15:32] that. What did you mean by that? Well,
[15:33] what we said was that they it was a
[15:35] corrupt enterprise and and uh and uh
[15:39] comes under the uh a New York statute
[15:42] which covers corrupt enterprises and
[15:44] that what we're saying was not just a
[15:46] scheme to defraud but really a corrupt
[15:49] enterprise from beginning to end in July
[15:53] of 1991. And why is it something that uh
[15:57] average Americans should care about if
[16:00] they weren't didn't happen to be a
[16:01] depositor?
[16:03] >> Well, I think I think for you know for
[16:05] two reasons with one of these American
[16:06] banks
[16:07] >> uh and this is really the reason that
[16:09] that we got involved. Um, the United
[16:13] States government and the states and
[16:15] cities spend literally billions of
[16:18] dollars to try to prevent drugs from
[16:21] coming into this country and then
[16:22] prosecuting drug dealers when they do
[16:25] receive the drugs. I mean, last year in
[16:27] in New York County, we prosecuted 30,000
[16:31] people uh for dealing in drugs and
[16:34] possessing drugs. It's equally important
[16:38] to find out who was transmitting the
[16:40] profits of of of these drug deals. And
[16:43] if you can't cut off that economic
[16:45] benefit, uh you can prosecute the street
[16:49] dealer and until the cows come home. So
[16:52] it was very important uh to to look at
[16:56] who's transmitting this money and and
[16:58] you can't I don't think you can say well
[17:00] it's a foreign bank, it's the bank
[17:01] secrecy, it's too difficult. It also
[17:04] goes to the credibility of government. I
[17:08] mean again
[17:08] >> which is supposed to be regulating these
[17:10] >> which is supposed to be regulating and
[17:11] and also saying you know are you going
[17:14] to go after the big guy as well as the
[17:16] as the small guy. So and and to I think
[17:19] people who deposit their money in a bank
[17:22] want to know who owns that bank and and
[17:24] and they would deprived and defrauded of
[17:27] of that information.
[17:29] >> Let me ask you about just quickly about
[17:30] the points in in Mr. Clifford's uh and
[17:33] and Mr. Altman statement today among
[17:35] other things they say cruel and unjusted
[17:37] abuse of the prosecutorial function.
[17:39] They say you have no reliable or
[17:40] credible evidence. It's a mean and so
[17:43] on.
[17:44] >> They they will have their day in court
[17:46] >> and uh under the American system they
[17:48] can make all of those arguments and if
[17:51] the court and the jury believe them then
[17:53] the charges will be dismissed. Uh if
[17:56] they don't believe them then they'll be
[17:58] convicted. But that I'm not going to
[17:59] answer that uh on a any news media
[18:04] program. That that's a matter that's an
[18:06] argument to be made in court and it will
[18:08] be made and they will get a fair
[18:10] hearing.
[18:10] >> So when they say uh circumstantial
[18:12] evidence uh no direct credible evidence
[18:17] uh unfounded speculation,
[18:19] >> they will have their day in court to to
[18:21] make that argument and if they're
[18:23] correct they will be acquitted. If
[18:25] they're not they'll be convicted.
[18:27] >> What about their other point? One of
[18:28] their other points, this reflects this
[18:29] intense competition they say that was
[18:31] underway between your office, the New
[18:33] York district attorney's office, the the
[18:36] Justice Department and the Federal
[18:37] Reserve.
[18:38] >> That that's an argument for them to make
[18:40] it court. But let let me say this that
[18:41] when uh we've worked very closely with
[18:44] the uh with the Justice Department for
[18:46] the last uh eight or nine months. We've
[18:49] worked very closely with the uh with the
[18:51] Federal Reserve. at at our announcement
[18:54] today was the council of the New York
[18:56] State Federal Reserve Board. Uh key key
[19:00] man in the Department of Justice. Uh my
[19:04] executive assistant was down at the at
[19:05] the Washington announcement. We are
[19:08] working very closely together. I'm sure
[19:10] they hope we're not. Uh but this is a
[19:13] cooperative venture and uh we all all of
[19:16] us in government are being paid to serve
[19:18] the people and we're going to do the
[19:19] best job we can. Earlier on though, was
[19:21] there not criticism of the Federal
[19:23] Reserve, the Justice Department for not
[19:25] moving quickly enough on?
[19:27] >> Well, my memory only lasts about nine
[19:30] months and I can tell you for the last
[19:33] nine months, we've been working very
[19:34] closely together.
[19:35] >> Was there any effort uh by either the
[19:39] attorneys for Mr. Clifford or Mr. Alman?
[19:42] Any discussion of any sort of uh
[19:44] bargaining arrangement to work out a
[19:46] plea on their part? uh on on either
[19:49] either what the charges would be or what
[19:51] they would plead.
[19:52] >> Uh when lawyers come in and talk on
[19:55] behalf of their clients, I I don't think
[19:58] that should be discussed unless it's
[20:00] made an open court. But I but I can tell
[20:02] you that uh uh we must have had a half a
[20:05] dozen meetings with uh with lawyers for
[20:08] for Mrs. Clif and Norman and they had a
[20:11] a fair hearing. I'd like to just mention
[20:13] that also, you know, we we announced
[20:17] today that that one of the key figures
[20:20] in in the takeover first American uh
[20:23] Shake Camel Adam has pled guilty is
[20:27] paying $105 million fine.
[20:31] But even more important, he's agreed to
[20:33] fully cooperate uh uh with us and and
[20:37] with the Justice Department, agree to
[20:39] testify in the grand jury and at trial
[20:40] if if required. Is that pivotal to this
[20:42] case?
[20:43] >> Uh, it's important. I mean, this is a
[20:45] this is an extremely important
[20:47] development. He's somebody that we could
[20:50] not have extradited from Saudi Arabia,
[20:53] very prominent man, Saudi Arabia, and
[20:55] the fact that he came forward, pled
[20:57] guilty, entered into agreement to to
[21:00] testify is an extremely important
[21:02] development.
[21:03] >> Robert Morganthaw, we thank you for
[21:04] being with us.
[21:05] >> Thank you for asking me,
[21:06] >> Jim. Now, the views of two reporters who
[21:09] have been covering the BCCI scandal.
[21:11] Douglas France of the Los Angeles Times,
[21:14] co-author of the book A Full Service
[21:16] Bank: How BCCI Stole Billions Around the
[21:19] World, and Alan Freriedman of the
[21:21] Financial Times. Mr. France, first,
[21:23] there were also some federal indictments
[21:25] today in addition to the ones that uh
[21:27] were made in New York. In simple terms,
[21:29] what do they allege?
[21:30] >> They're fairly similar to the New York
[21:32] State indictments. They alleged simply
[21:33] that Clifford and Altman concealed
[21:36] BCCI's ownership and control of First
[21:39] American Bank when they lied to Federal
[21:42] the Federal Reserve Board in 1981 at the
[21:44] initial hearing and at various points
[21:46] beyond there. And they also allege in
[21:48] the federal indictment that Clifford and
[21:50] Alman concealed lucrative side ben side
[21:54] financial deals that they struck with
[21:56] BCCI. They allege in the federal
[21:58] indictment that they concealed those
[21:59] arrangements, particularly a $10 million
[22:02] stock deal in order to avoid attracting
[22:04] federal regulatory attention that might
[22:06] have brought down the curtain on this
[22:07] scheme earlier.
[22:08] >> The term that the assistant attorney
[22:10] general used was sweetheart deals. What
[22:12] is he talking about? Well, I think
[22:13] primarily he's talking about a 1986
[22:16] stock transaction in which Clifford and
[22:19] Altman were permitted to buy $18 million
[22:23] worth of stock in the parent company of
[22:25] First American. To buy that, they used
[22:28] an $18 million BCCI loan in which there
[22:32] were they put up no collateral. They put
[22:34] up no money of their own. BCCI took all
[22:37] the risk and Clifford and Alman took
[22:39] none. 18 months later, they sold the
[22:41] bulk of that stock and pocketed a $10
[22:43] million profit. Now, that's a
[22:45] transaction in which they they had no
[22:47] financial risk of their own. You know, I
[22:50] talked with a lawyer yesterday about
[22:51] that transaction and he said, "My
[22:54] clients pay me. They don't pay me off."
[22:56] That's a transaction that looks more
[22:57] like a payoff than a legal fee.
[22:59] >> And so, the but there's never been any
[23:01] question about that having taken place.
[23:03] The only question now is whether or not
[23:05] it's legal or not. Right. There's also a
[23:06] question in the Federal indictment about
[23:09] whether Cliff Clifford and Altman told
[23:12] the Federal Reserve board about that.
[23:13] The Federal Reserve and the indictment
[23:15] allege that they concealed that
[23:18] transaction as well from the Federal
[23:19] Reserve to avoid attracting attention to
[23:21] what was going on at BCCI and First
[23:23] American.
[23:23] >> Okay. And that's a separate offense from
[23:25] having actually having done it.
[23:27] >> Yes, it is. I say all right, Alan
[23:29] Freriedman, let's go into the some of
[23:30] the as as as Judy said, um Mr. Alman and
[23:34] Mr. Clifford uh have not made a
[23:36] statement or not not spoken today uh in
[23:39] person, but they've they've issued this
[23:41] written statement and they they they're
[23:43] supposed to have a news conference in
[23:44] the morning. But what about this idea of
[23:46] the intense competition that they
[23:48] alleged that existed between the Justice
[23:50] Department and uh and the New York
[23:52] people as well as the Federal Reserve?
[23:54] Is there anything to that from your
[23:55] perspective? You've been on this story
[23:57] from almost the very beginning.
[23:58] >> Yeah, I' I've covered this story and um
[24:00] I don't think I've perceived competition
[24:03] as such. I think I've always perceived
[24:05] the Federal Reserve doing an excellent
[24:06] job. I've certainly perceived Mr.
[24:08] Morganthau's office being miles ahead of
[24:11] anyone else in the world on this case.
[24:13] And I have to be honest and say that one
[24:15] year ago, the Justice Department was
[24:17] accused by Mr. Morgantown by others and
[24:20] I think rightly so of dragging its feet.
[24:22] Uh the New York District Attorney was
[24:24] way ahead of the indictments brought a
[24:27] year ago today the first massive fraud
[24:28] indictments. The attorney general
[24:31] Thornberg and now Mr. bar have come
[24:32] under enormous criticism. Mr. Morganthaw
[24:35] was very diplomatic before and he said
[24:36] his memory only goes back 9 months. The
[24:38] truth is the Bush administration has
[24:40] come under a lot of criticism for not
[24:42] prosecuting. There have been questions
[24:43] raised about whether this had to do with
[24:45] former CIA connections with BCCI or
[24:48] what. It's not clear. The point is there
[24:50] has not been competition. There's been
[24:51] problems.
[24:52] >> Yeah. Uh Mr. France, the uh is what
[24:55] about the idea that what Mr. Morgan Doll
[24:58] said that at least from the last nine
[24:59] months there has been superb
[25:01] cooperation. Does your reporting bear
[25:03] that out?
[25:04] >> Oh, sure it does. It bears out the
[25:05] earlier problems that Allan mentioned.
[25:07] And when Bill Barr became attorney
[25:09] general, he responded to the criticisms
[25:12] by moving this up to the front burner.
[25:14] He put Bob Mueller, the head of his
[25:15] criminal division, in charge of it. And
[25:17] they finally got after the BCCI case the
[25:20] way they well could have in October of
[25:22] 1988 when the first federal indictments
[25:24] against BCCI were brought down in Tampa.
[25:26] All right. All right. Let's talk about
[25:28] the evidence here. Both of you, as I
[25:29] say, have followed this case. Alan
[25:31] Freriedman, uh, is there a smoking gun
[25:34] here? Or if there's not a smoking gun,
[25:36] what is it based on your knowledge that
[25:38] the government, the federal government,
[25:40] the state government, the Federal
[25:41] Reserve have in a general way to back up
[25:43] these very serious charges against these
[25:46] people? Well, I think I think my
[25:48] understanding is that both the New York
[25:50] District Attorney and the federal
[25:51] government are in possession of a series
[25:53] of statements and filings made by Mess
[25:55] Clifford and Alman on behalf of First
[25:57] American and on behalf of their clients
[25:59] to the bank regulators. So that's on the
[26:01] record. We know that Mr. Clifford
[26:03] repeatedly said there was no BCCI
[26:05] involvement. But they're also and and
[26:08] >> excuse me. Now the reason that is
[26:10] important because if he made a certain
[26:12] statement then what they have to do is
[26:14] prove that he knew otherwise when he
[26:16] made that statement and that statement
[26:18] was false when he made it. Correct.
[26:19] >> Exactly. Okay. But also we're looking at
[26:21] a strange what what they call a triple
[26:23] role that Clifford Alman filled.
[26:25] Clifford and Alman were at the same time
[26:28] the people who were brought in by Bert
[26:29] Lance to originally help take over this
[26:31] bank in Washington. They served as
[26:34] lawyers to BCCI. They served as lawyers
[26:36] to First American. They served as
[26:38] chairman and and president of First
[26:39] American. They had a whole milange of of
[26:42] roles that seem to conflict at times.
[26:44] And it's very hard for the average man
[26:46] on the street to imagine them not
[26:47] knowing this. But furthermore, their
[26:49] documents which I've seen and which the
[26:51] Senate has released and maybe they're in
[26:53] the uh in the evidence that Mr. Morgan
[26:54] thou has, I don't know, that clearly
[26:56] show Mr. open at least being privy to a
[27:00] series of BCCI meetings around the world
[27:02] in Vienna and elsewhere where they're
[27:04] talking about First American as part of
[27:06] our family. There you have Mr. Alman
[27:08] sitting together with Mr. Abbott and
[27:10] these BCCI people uh supposedly not
[27:12] knowing anything about their ownership
[27:14] of the American Bank and instead they're
[27:16] planning how to hire a vice president.
[27:17] They're they're getting into a lot of
[27:19] detail that may be circumstantial but
[27:20] it's certainly interesting.
[27:22] >> Well, anything to add or subtract from
[27:24] that? I think if there's not a smoking
[27:25] gun, there may now be a smoking chic. We
[27:28] have KL Adam, the former head of Saudi
[27:31] intelligence, who's now agreed to plead
[27:33] guilty and cooperated. That's very
[27:35] important. Documents are difficult for
[27:38] juries to understand. Documents, even
[27:40] signed papers, can be disputed by
[27:43] defense attorneys. But if you've got
[27:45] Kladam sitting there talking about a
[27:47] decade's worth of meetings with Clark
[27:50] Clifford, Robert Altman, Aahassan Abidi,
[27:52] and the rest of the crew, I think you've
[27:54] got a very potentially important and
[27:56] potent witness.
[27:57] >> And that doesn't that immediately take
[28:00] it out of this complicated situation
[28:02] that we that the average person, oh my
[28:04] goodness, I'll never understand that.
[28:05] But they can understand that.
[28:07] >> Oh, I think so. I mean, I I don't view
[28:08] this story as as quite so complicated. I
[28:11] mean, I think this is a story of Clark
[28:14] Clifford acting as a front for a foreign
[28:18] bank that had been refused permission to
[28:20] buy banks in the United States because
[28:23] they were shrouded in rumor and mystery
[28:25] because we didn't know anything about
[28:27] their money because they weren't
[28:28] regulated. They were refused permission.
[28:30] They hired Clark Clifford. He became
[28:32] their front. He said everything's okay.
[28:35] And so they secretly were allowed to
[28:37] come in here and buy three US banks and
[28:40] a big chunk of a savings and loan down
[28:42] in Florida. But the issue of course as
[28:44] you said Alan Freriedman is that Mr.
[28:46] Clifford and Mr. Alman have said in
[28:47] testimony before the Senate of the
[28:49] United States and elsewhere that they
[28:51] were duped that they did not know what
[28:53] was going on that these awful people who
[28:55] ran BCCI had them just like they had
[28:57] other people. And that's what this whole
[28:59] case is going to revolve around is it
[29:00] not?
[29:00] >> Yeah. I mean Mr. Clifford and Mr. Alman
[29:02] have made several appearances in
[29:03] Congress. There's been a great deal of
[29:05] showmanship. Um they brought Linda
[29:07] Wonderwoman Carter in there, a lot of
[29:09] photographers, a lot of television, and
[29:10] they've said, "Mr. Clifford's basic
[29:12] argument is he holds his hand up and he
[29:14] says, "Trust me. My conscience is clear.
[29:16] I've advised every president since Harry
[29:18] Truman. Trust me. That may not be good
[29:20] enough in court." I'd like to just
[29:22] quickly come back to that other point
[29:23] about Shake Adam. Doug is right. Very
[29:26] important. If that shake testifies
[29:28] against Clark Clifford and Robert Alman
[29:30] as I think he may well because he is
[29:33] cooperating with the prosecutors that's
[29:35] very compelling stuff and this is a very
[29:37] influential Saudi uh shake very
[29:40] important development that
[29:41] >> and very high up Mr. France in this
[29:44] whole operation. In other words, what he
[29:45] he's not he wasn't a peripheral
[29:47] character. Is that correct?
[29:48] >> He was one of the initial investors in
[29:50] BCCI and he was one of the initial and
[29:53] largest investors in First American in
[29:56] that group that took it over in 1981.
[29:58] Adam has been there from the start and
[30:00] Adam is a very curious character because
[30:02] as as we mentioned earlier, he was the
[30:04] former head of Saudi intelligence. He
[30:06] had very strong ties to the US Central
[30:08] Intelligence Agency. And as you look
[30:11] beyond sort of the the headlines on this
[30:14] scandal, I think we may through his
[30:16] participation learn a little bit more
[30:18] about the CIA's involvement in this bank
[30:20] as well.
[30:20] >> But the allegation about the CIA, which
[30:23] the CIA is denied, is for the record is
[30:26] that that they were just may have been
[30:29] one of its customers, not that they were
[30:31] manipulating anything. Is that not
[30:32] correct? In other words, they used the
[30:33] BCCI maybe to transfer money around.
[30:36] >> That's what they've said. I I think they
[30:38] they they use the they use the BCCI for
[30:41] other means also. One of the things they
[30:43] use it for is is as as a window on
[30:45] certain terrorist operations around the
[30:47] world. They watched Abu Nadal and his
[30:50] organization through the London offices
[30:52] of BCCI and I think there may still be
[30:54] some more to come out about
[30:55] >> but is that necessarily an evil thing is
[30:58] what I'm
[30:58] >> No, I don't I'm not necessarily I I'm
[31:00] not I don't believe the CIA was
[31:02] manipulating or running DCCI.
[31:04] >> Yeah. Yeah. You have anything to add to
[31:06] that, Alan Freriedman? Well, I I would
[31:07] only point out that the um the CIA used
[31:10] BCI for legitimate operations, but we
[31:12] also have found a lot of evidence that
[31:15] um that BCCI was used in illegal
[31:17] operations like Iran Contra and I agree
[31:19] with Doug a lot more is going to come
[31:20] out in future on that.
[31:22] >> And that's my final question in a word
[31:24] Alan Freriedman is everything going to
[31:26] come out is the thing now in motion now
[31:28] we going to know what happened and what
[31:29] did not happen on BCCI?
[31:31] >> I think it's going to take years and
[31:33] years before anything uh before we get
[31:35] near threearters of the story. Mr.
[31:37] Morgan thou said this morning, "We're at
[31:38] 50% of the story. I think we still need
[31:41] to understand relations with the CIA. We
[31:43] still need to understand relations with
[31:44] American politicians. There's a lot more
[31:47] to come. The BCCI story is by no means
[31:49] over."
[31:49] >> You agree?
[31:50] >> I do agree. But this was one of the most
[31:52] important developments along the way,
[31:54] the indictment of Clifford and Alman.
[31:55] >> All right, gentlemen. Thank you both
[31:56] very much.
[31:57] >> Thank you.
[31:57] >> Thank you.
[31:58] Still ahead on the NewsHour, getting
[32:00] fathers to support their children,
[32:02] Europe's new refugee crisis, and an
[32:05] amiiwalik essay.
[32:16] Child support is next tonight. The
[32:18] Senate Judiciary Committee held hearings
[32:20] on a bill today to prevent so-called
[32:22] deadbeat dads from crossing state lines
[32:25] to avoid paying child support. It's a
[32:28] subject that has received growing
[32:29] attention recently. Correspondent
[32:31] Elizabeth Brackett has our report.
[32:34] >> Yeah. Ross King, please.
[32:36] >> This is Ross King.
[32:37] >> Hello.
[32:38] >> Hello.
[32:38] >> Yeah. Is this Ross?
[32:39] >> Yeah.
[32:39] >> Yeah. Ross, this is Mr. Burton. I'm
[32:41] calling you from International Tours.
[32:42] How you doing?
[32:43] >> Hi.
[32:43] >> Ross King was happy to hear he had won a
[32:46] big prize.
[32:46] >> It's 15 days roundtrip airfare for two
[32:50] and it's uh $1,500 in cash dispenser.
[32:54] No gimmicks. Everything's free.
[32:59] But when Ross King answered his door to
[33:01] accept the money, he was in for a big
[33:04] surprise.
[33:07] >> Mr. Ross King.
[33:08] >> Yes.
[33:08] >> How you doing? Ross King Jr., please to
[33:10] meet the George County Sheriff's
[33:12] Department.
[33:14] >> In Baltimore, the sheriff's department
[33:16] has gotten serious about enforcing
[33:18] warrants for parents who are behind in
[33:21] child support payments. This scam was
[33:24] part of a 4-day sweep that targeted 100
[33:27] violators and picked up 96.
[33:30] Ross King, who owed $6,000 going back to
[33:34] 1988, was one of them.
[33:36] >> Ross, man, how come you ain't paying
[33:37] child?
[33:38] >> I pay. I pay. I pay.
[33:40] >> Yeah, but you still owe a lot of money.
[33:41] You know, you owe money in the rears.
[33:43] Why aren't you taking care of your kids,
[33:44] man?
[33:46] Baltimore also conducts early morning
[33:48] raids that bring in parents who have
[33:50] fallen far behind in their payments.
[33:54] The city's intensified pursuit reflects
[33:56] the growing effort across the country to
[33:59] enforce child support orders.
[34:01] >> We just want to make sure that he takes
[34:03] gets taken care of and there's no
[34:06] hassles between us so that it doesn't
[34:08] reflect on him.
[34:12] Everything is settled as of today.
[34:16] >> Yes, your honor.
[34:17] >> Here in Colorado, collections doubled
[34:20] between 1987 and 1991. And Colorado and
[34:23] Maryland are not unusual. Nationwide,
[34:26] collections handled by government
[34:27] agencies were up 75%.
[34:31] Even though the number of cases handled
[34:32] by those agencies only increased by 26%.
[34:37] John Burnernhard directs the child
[34:38] support office in Denver. We have a
[34:41] marvelous number of tools at the present
[34:42] time. We can attach people's wages. Uh
[34:45] we can intercept their uh lottery
[34:47] winnings. We can intercept their
[34:48] unemployment winning or unemployment
[34:50] earnings. Uh intercept uh their tax
[34:53] returns. Uh there are variety of
[34:55] remedies. But if somebody truly doesn't
[34:57] want to pay support, they can make it
[34:58] awfully difficult to collect that
[35:00] support.
[35:01] >> So the problem remains enormous. 1990
[35:04] census figures estimate that only half
[35:06] of the 5 million parents supposed to be
[35:09] receiving child support are actually
[35:11] paid in full and one quarter receive
[35:15] nothing at all. For these custodial
[35:17] parents, the majority of whom are women,
[35:20] the system is not working. Joanne Foss
[35:23] is one of them. A year ago, she and her
[35:25] twin sons moved from Minnesota to
[35:27] Colorado and her ex-husband's payments
[35:30] came to a virtual halt. It was almost a
[35:32] manageable amount when we moved here,
[35:35] but since we've moved here, it has just
[35:37] gotten increasingly
[35:40] more and more and more and and less
[35:43] manageable. And we're up to
[35:44] approximately $4,000 right now in a
[35:48] rears, most of which has occurred in the
[35:51] last 6 to seven months.
[35:54] >> This is Joanne. Foss works full-time for
[35:57] a marketing company, but she sorely
[35:59] misses the $416 monthly payment.
[36:03] >> What my paycheck covers is uh the rent,
[36:06] the food, the lights, the basics. There
[36:09] are there is absolutely nothing that
[36:11] that we could afford over and above that
[36:16] if it weren't for my family. So, it
[36:19] isn't a question of um are we paying for
[36:22] um you know this second set of
[36:24] rollerblades or uh a trip to Disneyland.
[36:27] We're talking about we're talking about
[36:29] things like shoes for school, pants, um
[36:32] field trips that school sponsors that
[36:34] you need to send along another $10 or $2
[36:37] or a picture of such and such and so and
[36:40] so. Those are the things that they miss.
[36:42] Frustrated, boss finally asked
[36:44] Colorado's child support office to
[36:46] contact Minnesota.
[36:48] She wanted her ex-husband's employer to
[36:51] begin withholding support payments from
[36:53] his salary. But the case worker warned
[36:56] her there would be no fast solution. She
[36:59] looked me right in the face and said,
[37:00] "Do not expect anything in 30 days
[37:02] because it will not happen. I can
[37:04] guarantee you that. They have 90 days to
[37:07] reply. State to state 90 days. Then if I
[37:11] don't receive anything from the state of
[37:13] Minnesota, we take it to a state level
[37:17] through the state or through the
[37:18] Jefferson County, Colorado, they have 30
[37:21] days. If there is no response from
[37:24] Minnesota, we go back and take it to a
[37:26] federal level and then it's another 30
[37:29] days that they have. What happens after
[37:32] that? I have no idea. I didn't even dare
[37:33] ask. At that point, Foss fears her
[37:36] ex-husband would challenge her claim in
[37:38] court or quit his job. Either move would
[37:42] likely mean a delay in receiving money.
[37:45] >> Still two cases are closed and I'm only
[37:48] seeing the two
[37:49] >> troublesome interstate cases like fosses
[37:52] are believed to be significantly
[37:54] increasing in number. One reason is that
[37:56] some non-paying parents move across
[37:59] state lines to make it harder for
[38:00] authorities to track them down.
[38:03] Also, some states have more liberal laws
[38:05] than others. In Rhode Island, a parent
[38:08] may be required to provide support until
[38:10] his child's 21st birthday. But in
[38:13] neighboring Connecticut, the maximum age
[38:15] is 18. So, to help states deal with a
[38:18] nationwide problem, Congress established
[38:21] the Commission on Interstate Child
[38:23] Support. Margaret Campbell Haynes is its
[38:26] chairwoman. About 30% of all child
[38:29] support cases in this country are
[38:30] interstate. But the enforcement is out
[38:33] of proportion to that because only $1 of
[38:36] every $10 collected is in an interstate
[38:39] case. In fact, there are about 34% of
[38:43] these interstate cases where you don't
[38:45] collect even a dime. The commission
[38:47] spent two years studying the problem and
[38:49] looking for solutions promoting
[38:51] uniformity and cooperation among the
[38:53] states. This deplorable ineffectiveness
[38:56] on the parts of the three different
[38:57] states and very lengthy delays in
[39:00] getting the support to my children has
[39:02] had serious repercussions on the
[39:04] children.
[39:04] >> Next week it will issue a voluminous
[39:07] report making several recommendations.
[39:10] >> One of them is to make non-sup support a
[39:13] criminal offense in certain
[39:14] circumstances.
[39:16] >> There are a number of cases that I call
[39:18] hardcore cases. cases where the person
[39:21] has the ability to pay child support and
[39:23] just does not pay particularly your
[39:26] self-employed cases and we need a
[39:30] criminal non-support statute to give it
[39:33] an extra tool to enforce the case. Um I
[39:36] think we also have to emphasize the
[39:38] symbol symb symbolic importance.
[39:41] I criminal laws are statements by
[39:43] society about what we will not tolerate
[39:47] and certainly non-payment of child
[39:49] support should be one of those offenses.
[39:53] The commission also endorses a program
[39:55] being pioneered in Washington state that
[39:57] targets non-payers in jobs such as
[40:00] construction.
[40:03] Companies in high turnover businesses
[40:05] forward their W4 wage withholding
[40:07] statements directly to the state's child
[40:10] support enforcement office. A computer
[40:12] matches social security information with
[40:15] a list of delinquent payers and
[40:17] immediately alerts the employer to make
[40:19] a deduction from the employee.
[40:22] That system worked with Kent Patterson.
[40:25] >> He took half of all of that all them
[40:28] days. And there was one I went out on,
[40:31] they didn't take any. One, they took
[40:33] half. Uh next one they took less than
[40:37] half.
[40:39] >> People such as Kent Patterson, a cement
[40:41] mason who moves from job to job, used to
[40:44] be hard to track. That's because they
[40:46] had often moved on to their next jobs
[40:49] long before the state's computers caught
[40:50] up with them.
[40:52] But if their employers are part of the
[40:53] program, and most builders are, their
[40:56] wages can be automatically deducted as
[40:59] soon as the first week on the job.
[41:02] Members of Congress continue to propose
[41:04] new enforcement laws. One proposal would
[41:06] make the Internal Revenue Service the
[41:08] central collection agency for child
[41:10] support. The IRS would manage a national
[41:13] registry of child support orders and
[41:16] oversee all income withholding. The
[41:19] legislation would also require parents
[41:20] who couldn't afford to pay their child
[41:22] support to take public service jobs. The
[41:26] prospect of tougher laws provokes an
[41:28] angry response from non-custodial
[41:30] parents, most of whom are fathers.
[41:33] >> This new bill that's coming out across
[41:34] the nation that's supposed to make it a
[41:36] felony to cross state lines if you're
[41:38] more than 6 months behind. It's not
[41:41] going to help out the kids. It may put a
[41:43] few of their fathers in jail. And you
[41:44] have to look at what message that's
[41:45] sending the kids. Bruce Mau is a
[41:47] divorced father of two who has become
[41:50] active in the father's rights movement.
[41:52] >> The kids need to have a positive role
[41:55] model for both a mother and a father.
[41:57] They need both a male and female role
[41:58] model. And they both need to be seen in
[42:00] a positive light. And if the father's
[42:03] going to jail and and told that he's not
[42:07] paying, you know, his child support and
[42:08] whatever else, and he's not allowed to
[42:11] see his killed children, and they're
[42:12] being told that it's because he's
[42:13] abandoned them when it isn't necessarily
[42:15] the case, that's devastating.
[42:18] >> Mau was divorced from his wife three
[42:20] years ago. Now he visits his son and
[42:22] daughter in a nearby Denver suburb twice
[42:24] a week. He spent a night in jail when
[42:27] one of his support payments was late in
[42:29] the mail.
[42:30] >> Let me tie this real quick. Ber believes
[42:32] many fathers fall behind because they
[42:35] have so little control over how the
[42:37] money is being spent and so little time
[42:40] with their children.
[42:41] >> So number one, equal access to the
[42:44] children and if you have equal access to
[42:47] the children, then you have equal
[42:48] expenses between the parents as far as
[42:49] child support.
[42:51] >> Many fathers such as Mau feel the system
[42:53] has treated them unfairly.
[42:56] But nationwide, the problem is much more
[42:58] likely to be defined as fathers failing
[43:01] to pay and the resulting impact on the
[43:03] children.
[43:04] >> You're as likely to be parted
[43:07] by divorce from your partner as you are
[43:10] by death. 50% of our cases end in
[43:13] divorce. So we're no longer in child
[43:16] support cases only talking about the
[43:18] welfare cases.
[43:20] >> We're talking about your next door
[43:22] neighbor, your friend, your sister. And
[43:25] I think as people realize that the child
[43:28] support problem is going to affect them
[43:30] personally, they're much more likely to
[43:32] see it as a a problem that our country
[43:35] needs to give priority to.
[43:37] >> And the country has begun to pay more
[43:39] attention.
[43:40] >> The release of the Interstate
[43:41] Commission's report will undoubtedly be
[43:44] followed by more new federal legislation
[43:47] later this year.
[43:57] Now, a further report on the tragedy of
[43:59] the refugees from Yugoslavia. There are
[44:01] now 2 million of them scattered from
[44:03] their homes and villages by a year of
[44:06] civil war in the republics that used to
[44:08] make up their country. Today, the United
[44:11] Nations Commission on Refugees,
[44:13] including representatives from Europe
[44:15] and the United States, held an emergency
[44:17] meeting in Geneva. Nick Gowing of
[44:19] Independent Television News reports.
[44:24] >> Two million people on the move. The
[44:26] other casualties of war, homeless,
[44:29] dispossessed, condemned to a life with
[44:31] no future, no certainty, no jobs, no
[44:34] money, often with none of their men
[44:36] folk. All of them driven to flee their
[44:38] homes by war. They would love to go
[44:40] home, of course. They cannot. The gunman
[44:43] will not let them.
[44:46] More than two million people seeking
[44:48] sanctuary now, like these Bosnians in
[44:50] Hungary. By autumn, it's expected there
[44:52] will be three million. Europe's worst
[44:54] humanitarian catastrophe since World War
[44:56] II, spiraling at a rate of 10,000 new
[44:59] refugees a day. All of them are fleeing
[45:02] to escape the war. They will go anywhere
[45:04] that will accept them. They keep
[45:06] traveling until they find a sanctuary.
[45:08] But sanctuaries are hard to find and the
[45:10] international community is desperately
[45:12] and belatedly hunting solutions to cope
[45:15] with a human disaster on an
[45:17] unprecedented scale which will not be
[45:19] solved even when eventually the fighting
[45:21] does end.
[45:24] The United Nations High Commission for
[45:26] Refugees in Geneva is overwhelmed and
[45:28] underfunded to tackle an unfolding
[45:30] disaster predicted officially now to
[45:32] cost an enormous amount of money. which
[45:35] is why it summoned ministers from 31
[45:37] nations to an emergency conference
[45:40] designed to coordinate action and pledge
[45:42] new money. An
[45:43] >> assertiated plan of action to help the
[45:45] poor people in the former Yugoslavia.
[45:47] >> By their nature, however, there can only
[45:49] be makeshift solutions for a refugee
[45:51] crisis which because of its magnitude
[45:53] now, everyone agrees will only be solved
[45:55] by a political solution which ends the
[45:58] fighting because without agreement to
[46:00] stop the war, the alternative is
[46:02] terrifying. I'm afraid time is running
[46:05] out. For weeks and months, for too long,
[46:09] people have been attacked and forcibly
[46:12] driven for their homes. It is time and
[46:15] probably the last call for the world to
[46:18] launch a humanitarian counter offensive.
[46:21] >> Within the former Yugoslavia, latest UN
[46:24] estimates show more than 680,000
[46:26] refugees inside Bosnia. Croatia, which
[46:29] says it can't take anymore, has another
[46:31] 600,000. Serbia has 380,000 homeless
[46:34] Serbs from Bosnia and Croatia, but
[46:37] pressure has spread well beyond the
[46:38] former Yugoslav borders. Austria and
[46:41] Hungary have now taken at least 50,000
[46:44] people each and 44,000 have reached
[46:47] Sweden. Germany has taken at least
[46:49] 200,000. Bon wants other EC countries to
[46:52] match its effort.
[46:55] The German operation at camps like this
[46:57] one near Dusseldorf has been generous.
[47:00] Until today, German policy has been at
[47:02] odds with much of the rest of Europe
[47:04] over refugees.
[47:06] >> Countries like France and Great Britain
[47:09] and then the Scandinavian countries
[47:11] should also accept refugees.
[47:14] >> The UN disagrees with the German belief
[47:16] in quotas because it discriminates
[47:18] against future refugees by setting
[47:20] limits. It also disagrees with the
[47:22] principle of transporting refugees such
[47:25] large distances.
[47:27] So it is to solutions like this former
[47:30] police barracks in Belgrade, a new camp
[47:32] that the UN and countries like Britain
[47:34] are looking. Refugees being accommodated
[47:36] with international assistance as close
[47:39] as war allows to the location from which
[47:41] they fled.
[47:43] >> It really does make sense to avoid the
[47:45] trauma, to avoid taking people away from
[47:50] the places they know, their families and
[47:52] friends, when you can actually help them
[47:54] there. In fact, you can help a thousand
[47:56] times more people on the ground in the
[47:58] former Yugoslavia than you could by
[48:00] taking them thousands of miles away.
[48:02] >> But the dangers of such a policy are
[48:05] stark. These recent pictures are rare
[48:07] evidence of a Bosnian refugee camp which
[48:09] was thought to be in a safe area, which
[48:11] then became a target for shelling by
[48:13] Serbian heavy guns. Continuing proof of
[48:15] Serbia's mass ethnic cleansing policy,
[48:18] which using one recent example, the UN
[48:21] High Commission for Refugees confirmed
[48:23] was still taking place.
[48:25] >> The mayor was ask organized a convoy of
[48:29] buses and cars to expel 4,000 Muslim
[48:33] inhabitants of the town. On July 16th,
[48:37] the expulsion was done with great
[48:40] bureaucratic and legalistic zeal. The
[48:43] persons given documents to show that
[48:45] they had given away their properties as
[48:48] gifts and were leaving voluntarily.
[48:52] The UN admits it is powerless to stop
[48:55] such ethnic cleansing, but reports
[48:57] continue to flow in each day of a
[48:59] process the leader of Bosnia's Serbs
[49:01] still denies is taking place.
[49:04] >> The major problem behind the refugee
[49:06] crisis is what is alleged to be the
[49:08] ethnic cleansing. Are you saying there
[49:10] is no ethnic cleansing? No ethnic
[49:12] cleansing. We just allow people to leave
[49:15] the battlefield if they want.
[49:16] >> But the people are being driven out.
[49:18] There is clear evidence of that.
[49:19] >> No, no evidence that they are we we have
[49:22] unassigned papers undersigned by those
[49:24] people who live certain area that they
[49:27] did it deliberately and no ethnic
[49:29] cleansing since we are committed to make
[49:33] possibility for the refugees to return.
[49:35] But what kind of guarantees can you give
[49:37] certainly for the Bosnians, the Muslims
[49:39] and the Croatians who are being pushed
[49:41] out for whatever reason that they could
[49:43] return home in security.
[49:46] >> We give full guarantees according to
[49:48] Geneva Convention for civilians
[49:51] for civilians. But those civilians
[49:54] are not civilians any longer after they
[49:57] take gun and start to fight against
[49:59] Serbian people. That's the problem. And
[50:02] we don't trust each other. It is that
[50:05] complete absence of trust and the terror
[50:07] it generates which will prolong the
[50:08] misery, create everinccreasing numbers
[50:11] of refugees, and thereby continue to set
[50:13] a major challenge for an international
[50:15] community still struggling in its
[50:17] efforts to end the crisis in the former
[50:19] Yugoslavia.
[50:29] Finally tonight, Amay Wallock, art
[50:31] critic for New York Day, has some
[50:33] thoughts about a 20th century giant,
[50:36] Pablo Picasso. Barcelona's favorite son,
[50:39] the artist Pablo Picasso, once said that
[50:42] he wanted to tell stories with the most
[50:44] humble everyday means at hand. And those
[50:47] stories should be as symbolic and
[50:50] profound, he said, as Christ's use of
[50:53] parable. Picasso's parables in painting
[50:56] and sculpture are called stills. But
[50:58] there's nothing in the least bit still
[51:00] about these pictures and playing cards,
[51:04] these guitars
[51:06] and fish and newspaper clippings.
[51:11] They spin visual fables for our times.
[51:15] The Cleveland Museum's international
[51:17] traveling exhibition of Picasso still
[51:19] lives, which is currently at the
[51:20] Philadelphia Museum, is called Picasso
[51:23] and Things. Nearly 20 years after his
[51:26] death, as much as 90 years since the
[51:28] first of them was painted, Picasso's
[51:31] eloquent things add up to a panoramic
[51:34] take on one man's tumultuous life, a
[51:37] tale for our traumatic century.
[51:41] This particular man was a packrat.
[51:44] Picasso surrounded himself with a
[51:46] clutter of things. Nothing of particular
[51:48] value unless it was some painting by an
[51:50] artist he admired. The point was never
[51:54] to collect what already had value, but
[51:56] rather to give value to the ordinary,
[52:00] the throwaway that everyone else had
[52:02] overlooked by transforming it by making
[52:06] it a character in his story.
[52:09] It took him a while to get the hang of
[52:11] it. His first still life painted when he
[52:14] was 20 years old and the century was
[52:16] just beginning in 1901 is just another
[52:19] pretty picture of a pretty good meal.
[52:22] But once Picasso had figured out how to
[52:24] make a red flower alone and out of place
[52:27] in a glass portray the adolescent pathos
[52:31] of his blue period, the still lives
[52:33] became allegorories of life and love,
[52:38] war, aging and death.
[52:41] When he was 26, Picasso and his friend
[52:44] Brock revolutionized the art of this
[52:46] century by inventing cubism, a radical
[52:49] new language for painting. He told the
[52:52] story of a savage struggle to catapult
[52:54] his art into the future through a jog in
[52:56] a lemon, a skull, and paint brushes.
[53:00] The language of cubism fractured,
[53:03] fragmented, and reassembled the real
[53:05] world on canvas.
[53:07] It said that everything even things we
[53:10] see and touch is changing all the time.
[53:15] Picasso changed too. He got himself a
[53:18] new love whom he called Majoli. And he
[53:21] took the unprecedented step of inviting
[53:23] the real world in to tell his stories.
[53:28] The parable of real words, real rope,
[53:32] real wallpaper and sheet music and
[53:34] paintings. a real spoon on a sculpture
[53:37] said that there is no difference between
[53:40] art and life
[53:44] and then he came face to face with
[53:46] death. The world was at war. Ava Majoli
[53:51] died in 1915 and his friends were away
[53:54] at the front. Picasso painted himself as
[53:57] a bottle of spirits forced by the
[53:59] bluebird's shadow to dance the dance of
[54:02] death. He resurrected the bird for a
[54:05] chilling insight into the dark shadows
[54:08] of his empty nest where no fire burned
[54:11] on the hearth.
[54:13] By war's end, the bird had become a
[54:15] pigeon for the plucking. But life goes
[54:18] on. When Picasso's first son, Pablo, was
[54:22] born to his first wife, Olga, in 1921,
[54:25] he expressed for all parents their pride
[54:28] and career at this fragile new life with
[54:31] a sacrificial [ __ ] on a table under
[54:34] which a scared dog waits. By 1925, his
[54:39] marriage was a shambles. A dear old
[54:42] friend had died, and Picasso painted an
[54:44] allegory of fury and frustration. Then
[54:48] he nailed torn cloth to canvas, impaled
[54:51] it with a knitting needle, and called it
[54:53] a guitar. But after he fell in love
[54:56] again with a teenager, even his guitars
[55:00] succumbed to the joy of sex.
[55:10] Then the Red Bull of brutality brought
[55:13] civil war to his native Spain and World
[55:16] War II to everyone. And Picasso's
[55:18] anti-war stories were told with skulls
[55:21] and fllayed flesh.
[55:23] After that, Picasso never lost his
[55:26] fascination with skulls. By then, in his
[55:29] 60s, his 70s, his 80s, he was struggling
[55:32] with aging and the fear of dying.
[55:35] Three years before he finally did give
[55:37] in to death at the age of 91, he painted
[55:40] one of his final still lives. It was a
[55:43] birthday flowers and it raged against
[55:46] going gently. "Hang on," it said to his
[55:49] century. "There's still too much to do."
[55:52] I'm Army Wallik.
[56:01] Again, the main stories of this
[56:02] Wednesday, former Defense Secretary
[56:04] Clark Clifford and his law partner,
[56:06] Robert Alman, were indicted in
[56:07] connection with their alleged role in
[56:09] the Bank of Credit and Commerce scandal.
[56:11] The two men categorically denied all
[56:14] charges. United Nations inspectors left
[56:17] Baghdad after failing to find weapons
[56:19] program evidence in Iraq's agriculture
[56:21] ministry. They said there were signs
[56:24] material had been removed from the
[56:25] building. Good night, Jim.
[56:27] >> Good night, Judy. We'll see you tomorrow
[56:29] night. But before we go, updates of two
[56:31] stories the NewsHour has covered
[56:33] recently. The Food and Drug
[56:34] Administration today said RU486, the
[56:37] French abortion pill that is not licens
[56:40] licensed in this country, will be made
[56:43] available to an American man with brain
[56:45] cancer. David Gro told a Washington
[56:47] hearing yesterday the drug may help
[56:49] prolong his life. The FDA said the
[56:51] manufacturer had decided to release the
[56:53] drug to Grow's doctor for medical
[56:55] research purposes. On another story, rap
[56:58] musician Ice Tea has decided to drop the
[57:01] song Cop Killer from his latest album
[57:03] during a debate about that recording
[57:05] last week. We mistakenly identified
[57:07] actor Charlton H as a board member of
[57:10] Time Warner. He's not. He is a
[57:12] shareholder, not a board member. I'm Jim
[57:15] Lara. Thank you and good night.
[57:18] >> Funding for the McNeel NewsHour has been
[57:20] provided by PepsiCo.
[57:34] Mexico.
[57:36] Part of helping the world live and
[57:38] communicate better is keeping it well
[57:40] informed. That's why funding for the
[57:42] NewsHour is also provided by AT&T
[57:45] and by the Corporation for Public
[57:47] Broadcasting and viewers like you.
[58:06] from childhood, a lesson of life.
[58:09] >> When children do jobs like that, they're
[58:11] working with their parents, with their
[58:13] brothers and sisters. Everybody's paying
[58:14] attention to each other so when they
[58:16] grow up, they always know who they are.
[58:19] There is more than bread making being
[58:21] passed on in this kitchen. To each
[58:23] visitor, a ball of dough,
[58:27] >> hands-on experience.
[58:31] >> Making bread is very good therapy. If
[58:34] you get angry at your neighbor, the best
[58:37] thing in the world you can do is to go
[58:38] in the house and bake a batch of bread.
[58:40] >> Work hard, feel good.
[58:44] >> The oven first. Once a week her family
[58:47] baked bread 3540 loaves a week. But
[58:51] today so few have smelled baking bread.
[58:53] It is distant in the memory. Life has
[58:56] changed has a thought. But here in a
[58:59] kitchen in a farmhouse built in 1869. It
[59:02] is done again.
[59:08] A bit of each of our heritage fresh from
[59:10] the oven.
[59:15] Little of it goes home. It's
[59:17] >> wonderful.
[59:19] >> Ray Summers at large near Aurora.
[59:22] >> The Aurora Colony Historical Society
[59:24] owns the Stoverill Farm. This weekend,
[59:26] Aurora welcomes the world with its
[59:29] annual Aurora Colony Days, including a
[59:31] parade on Saturday.
[59:33] >> Aurora is south of Cani on Highway 99E.
[59:37] Of course, this would not be a day to be
[59:39] baking bread. I guess tomorrow the hot
[59:41] air is going to have something dirty in
[59:43] it.
[59:43] >> Yes, it is. President Ry's here to tell
[59:45] us about that. That's
[59:45] >> right. Just when you thought you were
[59:46] doing your part by conserving water, now
[59:48] the DEEQ wants you to not drive to work
[59:51] tomorrow. Take a bus, take a plane, take
[59:53] an aeroplane, whatever. But don't use
[59:55] your car because cars and gas powered
[59:58] engines create ozone. And we got too
[60:00] much of that when it gets hot.
[60:01] >> All right. Thanks, Randy. Thanks for
[60:03] joining us.
[60:04] >> Come back and see us at 11. Good night
[60:05] for now.