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>> and now, "bbc world news." welcome to "newsday" on bbc. pushing for reform, hillary clinton holds formal talks with pro-democracy leader aung sang suit keep. >> and fresh sanctions against iran amid its cut to steal nuclear program. >> the united nations says the growing unrest in syria has sent them into civil war. rewriting the rules of the eurozone. at the french president unveils a new blueprint for the future. 12 noon in singapore. >> welcome to our viewers on pbs in america and around the world. this is "newsday."

u.s. secretary of state hillary clinton has begun formal talks with the pro-democracy leader aung san suu kyi. mrs. clinton said the u.s. about would be willing to ease sanctions if further progress is made towards political reform. a warning that this report contains flash photography. >> an american secretary of state shaking hands with the burmese president. hillary clinton and aung san suu kri, face-to-face, unthinkable a few months ago, but things may be changing and this isolette, repressive country. the burmese president laid out his policy for reform.

the american diplomat gave some praise, but said a lot more work was required. she offered incentives to do more and the foreign minister scored an invitation to visit washington. but this is just the beginning of a long process. >> we want to see political and economic reforms take hold, and i told the leadership that we will certainly consider the easing and elimination of sanctions as we go forward in this process together. >> this is the reason for the very cautious optimism. for years, the burmese people have suffered terribly at the hands of the country's leadership. the military is still the power behind the civilian government. hundreds of political prisoners remain in jail. aung san suu kri was only released from house arrest last

year. she said it was important to reform the government, and engagement is worth the risk and she trusts the president. but it appears not everybody is on board with change. the american secretary of state hopes this would not be a solitary visit but the beginning of a long partnership between the united states and burma. that all depends on whether the burmese leadership is able to demonstrate in the coming months that it is serious about reform. washington and the burmese opposition will be watching the president's every move. riggle heartbeat is in the north of thailand, a city that has become rigid racial harvey is in the north of thailand, a city that is at the center of this. it what do they hope for from this visit from mrs. clinton? >> i think that they hope that this real engagement by the data stage -- by the united states

may produce rewards, the incentives may prove enough to continue this reform process, but there are real doubts, in particular they were about the fact that more political prisoners have not yet been released. we've been talking with people who say there are those in jail whose terms have been extended recently. it is still a case of two steps forward, one step back. there is also the issue of economic minorities. clinton will be meeting with ethnic minority leaders today. the key idea is to have a big conference that would bring together all ethnic leaders and opposition leaders and the burmese government together to try to work out a plan so that everyone can benefit in the new burma, but there is a long way to go before we get to that point. >> the burmese government has made reforms, released political

prisoners to try to secure their position. have they been seen to do more for the ethnic minorities? >> not enough is the short answer. there is a feeling in the ethnic minority areas that the focus has been very squarely on the pro-democracy movement, on the political elite in rangoon, and not enough is being done in the ethnic areas where there are still conflicts raging. there have been recent efforts. there was a meeting in the past few weeks on the border between burma and thailand, between a government minister acting as an envoy for the president's and some leaders of the ethnic minority groups. it is very early stages, but if some momentum can be built as well, then i think perhaps the hope in place is that this will grow, that at least there is a process under way which includes everybody.

that is what people want to see, not just narrow reform but something brought. -- broad. >> thank you, rachel harvey. u.s. senate has approved harsh sanctions against iran that would impose sanctions on foreign firms that do business with the iranian central bank after the e.u. tightened its stance against the country following the storming of the british embassy on tuesday. >> european union foreign minister that has this meeting long before the compound was attacked. the incursion gave this summit much greater urgency. >> the sanctions have been at not agreed on. 180 additional -- the sanctions have been agreed on. at 180 additional companies, with shipping lines, with the

iranian revolutionary guard, that is a major extension of the european union's sanctions on tehran. >> tuesday's embassy attacks are still visit. they believe the protestors had links with the conservative establishment and the west is trying to work out ways of tackling the country's hardliners. >> we are looking forward to what comes next. the greatest economic resources it is its oil exports. sales of crude oil line their pockets, sustains human rights abuses, like no other sector of the iranian economy. >> for some, the pressure should focus on the oil fields. the islamic republic is one of the world's largest exporters of oil and it sells to europe. at the summit, some suggested an oil embargo, others opposed it. european union and iran to a lot of business together, but iran's key market is in asia and china

in particular, and that means more european sanctions can only have a limited impact on iran. for now, the west has agreed to concentrate on stopping iran's military from building nuclear weapons. iran says that its ambitions are peaceful. almost 200 individuals and companies now face sanctions. developments in that syria? >> yes, syria's main opposition group has struck a deal with the insurgents who call themselves the free syrian army to work together against the government of president assad. the opposition syrian national council said it would use force only in order to protect civilians. from neighboring turkey, we have this report. >> opposition to president assad comes in many forms. there are those who campaign overseas, building diplomatic

support for their cause. and there are those who fight, risking all inside syria. until now, there is little connection between the former soldiers of the free syrian army and the academic and intellectuals of the syrian national council, the main opposition group, but now their leaders have met in southern turkey and agreed to work together. the free syrian army said they recognized their goal and are non-violent program. agrees that its main job is to protect civilians and it will resist provocations from be a side regime and the two groups will form a committee to work together to form their campaign. all of this is important under the umbrella of the civilian council. can it stop the slide towards civil war? the problem as many of those who have taken up arms are only loosely under the command of the

free syrian army. they may not want to stop ambushing government forces. at anchor in the contested communities of syria over the death of unarmed protesters will make it hard for the armed men to restrain themselves, and that death paul -- that death toll is causing alarm. >> i had said this and is there were more defectors threatening to take up arms, i have said this in august, before the security council, that there would be a civil war. at the moment, that is how i am characterizing this. >> it is the prospect of civil war over its border with syria which has pushed turkey to bring the opposition groups together. it fears that the trickle of refugees that it is now sheltering could become a flood. the events on the other side are proving hard to predict an even harder to control. the president of france

nicolas sarkozy has called for a new eu treaty to impose greater financial discipline on the european governments. he will meet german chancellor angela merkel on monday. they will jointly announce their plan about the future of the eurozone. gavin hewitt said this report from paris. >> in a landmark speech, the french president said that europe would have to make crucial choices in the weeks ahead. he said that europe needs to be re-thought and redesigned. it deals of spoke about what would be unimaginable, life without the euro. >> the euro exists. it's that would have dramatic consequences for the french. it would make our debt unsustainable. the collapse of confidence would paralyze everything. the french would get before. we have no right to let such a disaster occur. >> president sarkozy said that europe could be swept away by the crisis if it does not get a

grip. he said he would push to give the eu a new treaty to enforce strict budgetary discipline. >> france is fighting with germany for a new treaty, more disciplined, more solidarity, more responsibility, a true economic government. >> although there would be much greater control over national budgets, the french president said this would not be a march towards super nationality. he knows how sensitive this would be for the french people. he envisions clochard -- closer integration, not giving more power to brussels but forging closer links between the governments. president sarkozy and chancellor merkel will now meet in paris on monday to work on a joint plan to save -- safeguard the future of the euro. despite recent increases, there are still differences between the leaders. the french hope is that its strict budgetary discipline is

put in place, it will weaken german opposition to the european central bank, acting as the lender of last resort, the one step that may call on the market. tomorrow, david cameron comes to see president sarkozy. people want to explore the proposals for the treaty change and what they mean, and whether an exchange for british support he could win important concessions. gavin hewitt, bbc news. still to come all the program -- the new challenge for china, the world financial problems threaten the health of its booming economy. >> 50 years in the making, elizabeth taylor's glittering gem collection is going under the hammer. the governor of the bank of england has described the current economic situation as it extraordinarily serious and threatening. and his latest assessment of the

state of the u.k. economic health, he urged british banks to build up their financial reserves even further. archie's economic rest on its -- are chief economic correspondent has this report. >> there was a warning a financial storm could be on the way brewing and eurozone and could be battling our shores before too long. that forecast came from the governor of the bank of england and his financial watchdogs, his words unexpectedly blunt. >> nobody looks at the current position could not it is extraordinarily serious and threatening, and therefore those with responsibilities to deal with it need to take action. >> there are concerns about you keep -- about u.k. banks' exposure to greece. for portugal, the total is 16 billion pounds. that is dwarfed by 47 billion pounds of bank london toot

italy and 90 billion of british lending to ireland. big losses elsewhere could hamper the bank's ability to land here, including consumer credit and mortgages. it even fears about future problems could lead to a cutback in lending. regulators want banks to put more money aside now and if need be cut dividends to shareholders and bankers bonuses. the industry says it is already curbing pay packages. >> there may be some bonuses paid in the industry. if they are, they are against a strict code by the financial service authority that they be paid in shares and locked up several years. >> bankers and regulators can only prepare and wait for the tide of events and the eurozone to take its course and hope that the u.k.'s defenses hold fast. this is "newsday" on the

bbc. >> these are the headlines -- >> hillary clinton has held former talks with pro-democracy leader aung san suu kyi. >> harsh sanctions against iran of from the concerns of their controversial nuclear program. new evidence that the crisis in the eurozone is undermining the growth across the world. and china, the world's strongest economy, manufacturing output is shrinking partly because of the falling sales to the fragile eurozone. our business editor reports from china on how they're coping with the destructive forces from the west. >> shanghai, china, the world's second-biggest economy, still growing fast while western economies stagnate. but the eurozone is floundering under its debt and is not buying as much chinese stock. all of this troublesome western

debts? some would say that china is partly to blame for them. just look at the extraordinary wealth of china's economic miracle. the way that china and other asian countries have exported so many critics a much more than they have imported, produced more than the consent. that is what the global economy has been on a fragile foundations. its savings have been lent to us so that we can buy their stuff, and much of the red zone and that the u.s. have become an unsustainably large with that. this farmer is living and working in harsh conditions. china's economic miracle allows his son to escape the poverty of the land. >> my son does not do farm work now. my village is a in an industrial area and the industry has

developed well. on the farm, we live at the mercy of the elements, which means income is not stable. my son will not do farm work. he is not what to do it at all. he is a salesman and a factory. >> because of the millions coming on to the jobs market every year, china's economic growth of 8% each year has perfected social unrest. but with our economy so weak, purchases of chinese goods probably will not allow the prosperity any longer. i asked about the new generation of billionaire is and whether the chinese themselves can be persuaded to spend more. >> yes, it is happening. consumption is growing at a faster rate than the economy. workers' wages have been improving, and that will drive consumption. the older generation does not spend much, but the younger generation has almost the same spending habits as their american counterparts. >> if china re-engineering its

economy so that chinese people spend more and save less, that should help we make our economy so we consume less and export more. in britain, we could hardly sell less for the economy whose feature may determine all of our futures. south korea has a reputation from developing new export industries, from samsung funds to ships, and now is turning its attention to the renewable energy markets. >> in the old days, electricity began down the coal mine. now it starts 60 meters out, inside steel wind turbines like this, a key part of south korea's green growth plan, creating a renewable energy supply at home and new machines to sell abroad. except here at south korea's first wind farm, all of the

turbines are european. when it was built six years ago, there were no career and turbine makers. now that there are, managers say they still buy from europe. >> people said the quality is similar, but to be honest i would buy european because they are tried and tested and there is not much difference in the price. >> locations like this are very rare in south korea, places where you have both wind and access to build turbines. that is a problem for south korean companies because until they can prove their turbines actually work, they will have trouble convincing customers to buy them, even here at home. unless, that is, they are told to. the government has said that utility companies will need to get to% of their energy from renewables by 2022. they're running a testing farm at the main power plant, a turbine from three different

korean companies. >> perhaps if we were a private company, we would see things purely in economic terms, but we are a public company and we feel that we have a role to play in fostering korean industry. the renewable energy market is potentially very big. even if it seems like we are latecomers, we are having a lot of transferrable experience with shipbuilding and semiconductors. >> korea faced stiff competition in electronics and car exports a generation ago. its companies are now market leaders. now as then, creating a domestic market is seen as crucial and south korea is green targets are ambitious, 11% of its energy from renewal by 2030. that means the world's biggest tidal power plant and south korea's first, opened just a few months ago. several more are planned, but there controversy all. opposition from fishermen and

environmental groups have left most of them all but stalled. they said they are listening and farm the regulations, which goes to the heart of the key national strategy. exactly how much cream can you combine with growth? exactly how much green canyon combined with growth? >> you have news about fashion and jules? yes, the treasured possessions of elizabeth taylor will be up for auction and a couple of weeks. there are probably too pricey for most of us. that is a spectacular array of jewelry and clothing amassed over her lifetime, expected to fetch millions and sale in new york. many people want to see what is on offer and the collection is on display in manhattan had of the sale. -- ahead of the sale. >> the epitome of old-fashioned

glamour. as elizabeth taylor was every inch the start, and the glittering jewels are her signature. she married to actor richard burton twice, and he showered her with diamonds. elizabeth taylor was groomed to be a star from childhood. she was the product of a now- defunct hollywood studio system. it her lavish tools were part of her contract with the moviegoing public. it now for a spectacular collection of jewelry and could sure clothing are for sale, if you have a few million dollars to spare. we could try your luck bidding for this emerald and diamond necklace. richard burton used to say, i introduced elisabeth to beer, bulgari.oduced me to akkar they would go shopping for jewelry during their down time. jewels or not just the premiers.

this ring was every day, and other gifts from husband no. 5 and 6. >> he bought it for over $300,000, which at that time was a huge sum of money. she wore this every single day. it is the piece that she was photographed most in, and she loved to where it and share it and that people admired it. >> is a glimpse into the luxurious lifestyle of a hollywood idol of yesteryear. the collection is valued at $30 million, the auction house christie's is hoping the elizabeth taylor factor will drive the prices higher. finally, have a look and listen to this. >> as we sing by the fire walking in a winter wonderland

>> you probably recognize at least one of those characters. it is president barack obama singing winter wonderland with his family, and had at of the lighting of the white house christmas tree. it is the one that is all the outside of the white house. kermit the frog in on the act as well. >> we promised not to sing. you have been watching "newsday." a brief reminder of the main news, u.s. secretary state hillary clinton has held formal talks with pro-democracy leader aung san suu kyi to discuss the progress of democracy in burma. she said that the u.s. would ease sanctions if further progress is made towards political reform. that is it for us from the

moment. thank you for your company. bye-bye. >> make sense of international news at bbc.com/news. >> funding was made possible by -- the freeman foundation of new york, stowe, vermont, and honolulu, newman's own foundation, and union bank. >> union bank has put its global financial strength to work for a wide range of companies.

what can we do for you? >> "bbc world news" was presented by kcet los angeles.