bbc news, westminster. >> neil heywood, the u.k. businessman who was found dead in a hotel room in china, was not a british spy. that was the word from britain's foreign ministry today. the mystery surrounding the continues tood, grow. from beijing, damian grammaticas has the latest. >> before his fall, bo xilai -- the facade of unity so prized here has been shattered. it seemed like he was tapping a fellow leaders' phone calls, even president -- tapping fellow calls,phone even president hu jintao. his wife is under scrutiny in the case, his son, too. it is claimed that his son had a red ferrari and a taste for parties and expensive living. his son has denied that he has ever driven a ferrari. the scandal is creating -- is deeply uncomfortable for the communist party. the death of neil heywood has shown a light on the privilege enjoyed by communist party officials and their family. there is a link between power and wealth in china today. there is growing inequality. and of those things are things that the -- and none of those things

first, the chinese said, neil heywood had died of excessive alcohol. he was very close to this man, bo xilai, a rising political star. in the comments come at the foreign secretary is accused of reacting far too slowly to the changing stories from china. william hakes insist that is not the case. >> -- william hague insist that is not the case. >> the chinese authorities have agreed to conduct an investigation. >> the message is unusually blunt. by insisting the chinese investigation into his death must be free from political interference and must expose the truth, it seems to be suggesting that it has real fears that the precise opposite could be the outcome. the truth, whatever it is, may be the casualty because it is the power struggle within the communist party that dictates the story. bo xilai was brought crashing down very deliberately by opponents of his populism. >> his opponents tend to favor a greater role for the private sector in the economy. as opposed to greater police powers. >> there is another reason the truth may never be known. withi

neil heywood died in a hotel room here last year. the businessman was a close family friend of one of china's top politicians, bo xilai. in an extraordinary twist, the chinese authorities suspect his wife, gu kailai, was involved in neil heywood's murder. the british government pushed authorities to reopen the case. chinese authorities originally said the businessman's death was accidental after excessive drinking. >> it must be investigated on its own merits, without political considerations. i hope they will go about it in that way. i welcome the announcement. "this investigation goes to the heart of power in china. neil heywood was priced for his contact with bo xilai. bo xilai was headed for the top of chinese politics. but he is also under investigation after a report he tried to defect to america earlier this year. all of this makes for china's biggest political scandal in 20 years. it comes as the country prepares for a once in a decade leadership change. >> this is a political decision by the central leadership to hang bo xil

bbc news, westminster. >> neil heywood, the british businessman found dead in a hotel room in china, was not a british spy. that was the word from the foreign minister today. the mystery around mr. heywood, who established close ties with a chinese businessman suspected of involvement in his death, grows still. >> bo xilai. the facade of unity so prized here has been shattered. it seems like bo was tapping his phone calls,rs' even president hu jintao. bo's wife is a suspect in the case. the lifestyle of his son is now under scrutiny, too. it has been claimed that his son has a red ferrari in beijing, that he had a taste for parties and expense of living. his son has denied he has ever driven a ferrari. the scandal is brewing deeply uncomfortable for this -- the scandal is proving deeply uncomfortable for the communist party. it has shown a spotlight on the vast riches being enjoyed by these party -- by the communist party. the communist party does not want these things aired today a-- aired. working with arms like aston martin and the london taxi company, -- firms like aston martin an

neil heywood's unexplained death is part of an enormous political scandal in china. a scandal rocking this year's contest for power at the very highest levels of china's leadership. the new rules china? every major decision affecting china's 1.3 billion people is made by the 25 member bureau. real power lies with its nine member standing committee. bo xilai was seen as a potentially divisive candidate for the very highest post. he made enemies. his involvement in scandals sealed his fate. >> top leaders liked bo xilai and his wife could be doing the kind of things they have been accused of, it is quite demoralizing. the second important issue is that it reveals there are revealsfissures in the top leadership. >> by coincidence, tonight, china's most senior woman politician arrived in the u.k. a state councilor. starting her visit in northern ireland, she is very unlikely to be drawn into comment on the current turmoil at home. >> motorsports governing bodies as the formula one grand prix in bahrain will go ahead as scheduled despite continuing unrest. it will saddest

so the death of neil heywood was apparently covered up from day one. it triggered the downfall of bo xilai, who ran this city, and subsequently the biggest political scandal in china in recent years. >> i feel very much in pain. i have no solution. because even though they're no longer in power, they were in charge of chongqing for four years. their group of associates still had a massive number of people there. they're all in crucial parts of the government, all doing evil. even now, my family is being persecuted by them. my company is persecuted by them. >> i hope one day i can go back to my home and spend time with my family. i hope china will become a democratic country ruled by law, and then i can continue to run my business. people like bo xilai are still around, i don't dare go back. >> well, martin, when you hear what people like lijun there, that businessman, has been saying, you get the impression when it comes to bo xilai, the plot is rather thickening. >> well, that's right. certainly when you speak to people here, people either love him or

the alleged murder of neil heywood what triggered his demise. is a suspect in the case. -- has denied he has ever driven a furry. this is proving to be accountable for the communist party. with the death of neil heywood has been a revelation of the growing rift between the poor and the rich in china. the beijing motor show is all about wealth and ostentation. working with brands like aston martin, this gives access to all this money, that heywood was offering before his death. >> he had the ability to work in relationships. he worked in a way that was immaculate and very professional. he had a very english way of doing things. >> he might have been a spy, as claims have been made, but that was dismissed. the british foreign secretary took the unusual step to say that mr. haywood had never been employed by the british government. that might in some of the speculation about the briton's death at this hotel. there are more claims of corruption, spying coming in fighting. >> a prominent environmental activists was shot dead in cambodia by military p

he is alleged to have revealed that neil heywood had been poisoned. bo has denied wrongdoing.ey are pouring filth on my family," he said. this case of alleged corruption and murder is now seen as one thing more, a sign that china's top leadership may be in trouble. the last time the party faced such a public crisis of confidence from its own people, say some observers, was the tiananmen square uprising in 1989. the questions then are the same questions now. is bo xilai the dark underside of a party where the privileged elite can abuse power at will-- in this case, to the point of murder? barry petersen, cbs news, beijing. >> pelley: police in serbia recover a stolen masterpiece worth more than $100 million. that's next. unlike randy over there. that's one dumb dude. ♪ the new claim satisfaction guarantee. dollar for dollar, nobody protects you like allstate. >> pelley: we got the official word today on what went wrong when a stage collapsed at the indiana state fair last august. seven people were killed when the stage came down in heavy winds as the country group sugarland was

neil heywood's chinese widow isn't talking to journalists. his car, with its 007 license plate, is still in the driveway of their beijing home. and his death is still a mystery. >> sreenivasan: those are some of the day's major stories. now, back to jeff. we look now at the tax system more broadly. where the problems lie and what it would take to fix them. for that we're joined by two people involveded in bipartisan efforts, alice rivlin is the co-chair of a debt task force at the bipartisan policy center. she also served on president obama's debt commission and is founding director of the congression many budget office. donald mar inis the director of the tax policy center. he has searched as a member of the council of economic advisors for president george w. bush and acting director for the c.b.o.. welcome to you both. give me a quick sort of thumbnail on where there's general agreement as to the problems of our tax system. alice rivlin, a, b, c. >> hard to know where to start. it's too complicated for one thing. much too complicated. it t

gu kailai is being investigated in connection with the death of neil heywood in the city of chongqing. what for husband close collaborators fled to the consulate in february. u.s. secretary of state hillary clinton issued a stark warning to north korea today to think twice about conducting a long- range rocket launch, which she said would be a direct threat to regional security. the regime has dismissed concerns that the satellite launch a is a cover for developing missile technology. our correspondent has gained share access to north korea and he has sent us this report. >> vast, empty streets. not a shock front anywhere. welcome to the world last stalinist state preparing a party for its dead, but eternal president. even the walls are being washed. it is like traveling back in time. we were whisked past grim looking villages to be shown this. a farm, all perfect rows. it is the way north korea wants to be sane. order, sufficient, at a modern socialist miracle. she says she is very happy working here and it is thanks to the leaders. everyone here keeps telling us how wise and benevol

neil heywood was found dead last november in a chongqing hotel. police were quoted as saying the murder was motivated by a fight over business interests. >> reporter: people have plenty to say about bo's suspension and his wife is expected in the involvement in the murder. >> translator: i think he's a typical politician with a long list of scandals. >> i don't think the communist rty should have suspended him. we need a politician like him. >> the state-run agency is calling for chinese to stay united. they're asking him to join forces in the communist party's leadership. but the scandal won't just go away. especially given the fact that bo's wife, gu, is being questioned by british police. the british government is asking china to investigate heywood's death. now, foreign secretary is asking for china's action on the case. >> it should be investigated in itself, irrespective of political considerations. >> reporter: the issue involving bo remains political. they hope they've minimized the impact by sidelining him and speeding up the heywood murd

his wife attempted to murder -- or did murder this businessman, neil heywood probably because he waso transfer -- he was transferring the family money out of the country, corruptly, and they were bickering --. >> and it would embarrass them for political purposes. >> he may have threatened to expose this if he diplomat get the price he was asking for. that's one theory. another theory by supporters of bo xilai is this is a frame-up. his opponents are trying to destroy a political rival precisely because he is quite popular. >> he was not a typical leader in china. he was more flamboyant, more interesting. >> and he was actually campaigning for the standing committee, which in china isn't done. people were nervous. it's striking in the year before his -- before this catastrophe for him, six of the nine members of the committee went to chongqing to, in a sense, pay a visit to him and now they're cutting him off at the knees. >> because he was doing a revival of mao. >> he was reviving maoist ideology and at the same time becoming a red capitalist. >> he was a huge capitalist at the sam

development, xinhua says bo's wife, gu kailai is being investigated for the murder of a british citizen neil heywood. the briton was found dead in a chongqing hotel last november. the news agency said gu has been turned over to the judicial authorities. it quoted police as saying the murder was motivated by a rift over economic interests. >>> u.n. arab league envoy kofi annan has urged the syrian government and opposition to end the year-long conflict by thursday. annan made the appeal when he visited syrian refugees at a camp in turkey. >> i believe it's a bit too early to say that the plan has failed. if the will is there, we can still get to cessation of hostilities by the 12th. >> in moscow, the syrian foreign minister said government forces are steadily proceeding with the withdrawal step by step. but reports say they are continuing their attacks on the rebel strongholds of homs and hamas. a syrian human rights organization said 62 people across the country were killed on tuesday. >> the u.s. ambassador to the u.n., susan rirks has urged the syrian government to take a peaceful solution. >> vio

his glamorous wife, gu kailai, has been arrested for the murder of neil heywood, a british man found dead in a hotel room last november. at the time, chinese police said he died of alcohol poisoning. although his family said, he didn't drink. now heywood and g-u are said to have had a falling out over shared business ventures. few other details are known but the scandal has engulfed china's top leadership that likes secrecy above all else. when we met bo more than a decade ago, he was the appointed mayor of a northern city and already marked as a rising star. >> it's a hard job in china today. >> reporter: from there he moved on to be party boss in chongqing, a city of 30 million and one of the fastest growing cities in the world. billions of dollars from foreign investment poured in from companies like coca-cola and ford. and while bo's fortunes soared, he began a ruthless crackdown on his political and business rivals. bo's unraveling began when chongqing's police chief pled to a u.s. consulate seeking political asigh limb. he's alleged to reveal heywood was poisoned. bo denied any

i think that they -- with the have already put out about it, murder of neil heywood and so on, i thinkis -- she is going to be found guilty. i mean, she may well be guilty, but i think she is going to be found guilty. >> thank you all very much. next week, the people of france of votes and begin the process of determining whether nicolas sarkozy will serve a second presidential term. while he has been in office, france has lost its triple a credit rating. his socialist opponent francois hollande claims he can save the economy by spending instead of cutting. a message to voters seem to like. so how is nicolas sarkozy trying to save his presidency? mark urban reports. >> here, a few hours east of paris, there is a shrine to a man and his ideology. general charles de gaulle lived and died here, leaving behind a powerful idea of france. his views on how the country should be run are still so influential that apparently his error as leader of his movement comes here to commune with his spirit -- his heir comes here to commune with this spirit. >> president nicolas sarkozy often comes alone.

of dollars outside china, move her ill-gotten money out of china and this british businessman neil heywood was doing that for her. that they disagreed about his cut and he to get leverage threatened to expose her and she in turn ordered people to poison him. >> you also write about how you have watched as how china has grown steadily more corrupt over the years. can you give us some examples? what have you seen? >> sure. well, china is very impressive in the caliber of the officials, the intelligence of the officials whom it appoints, but those officials have also become steadily more crooked. and one friend of mine is a judge in white collar criminal cases, and i was always a little surprised by his wealth. i gradually realized ep though he was a judge in corruption cases, he was making a living off of taking bribes from defendants in those corruption cases. and this is just so widespread. everywhere you turn there are these extraordinary stories. when i lived in china 20 years ago, corruption might be a cop taking a $10 or $20 bribe. these days the average take in one report, the average

asylum and revealing a sordid tale involving his boss and the cover-up of british businessman, neil heywoodced it under investigation for what is being called serious discipline violations. his wife was arrested earlier this week on suspicion of being involved in the murder of hey wood, who is described as having been a close confidant to the family. a conflict of economic issues and rose between hayward and bo's family. the death initially ruled accidental, alcohol homicide, was actually a homicide. the implications reached far across china. a nine-member standing committee will see seven of its members stepping down, including the preside president. >> to put the story in context as it relates to the future of china's john frisba is the president of the china business council. joining us on the phone is jeff, correspondent for the bureau chief. good to have you on the program, gentlemen. thank you for joining us. jeff, what kind of light does the fall of bo shed on the politics of china, particularly in the change of politics happening? we'll have a new head of the country later this year

british businessman neil heywood found dead in a hotel room last year, and police say he was poisoned by cyanide. soon after, a prominent politician bo xilai once thought to be the president of china soon after lost his job and is totally mia. not for killing heywood but for corruption and wiretapping the country president. spying. the wife was arrested and accused of using cyanide to kill heywood thanks to a business deal gone bad. the story, as we have been saying, james bond-like, but international attention is focusing on the couple's son. question, swirling how the young man once suspended from oxford university in britain because of poor academics got into one of the most elite universities in the world. he's studying public policy at the harvard kennedy school of government. a school that takes 20% of its applicants. average 26 years old three years work experience. he's 24. a source familiar with his academic record told "outfront" during one course in 2010, he didn't turn in a single assignment, yet the following year he was awarded a coveted research grant in public analysis

. >> ( translated ): regarding british citizen neil heywood's death, the relevant information following the due legal process and the jurisdiction department will handle it according to law. >> warner: british prime minister david cameron also weighed in, on a trip to indonesia. >> i think it's very important that we get to the truth about what happened in this very disturbing case, very tragic case. >> warner: and china has clamped down on internet discussions of the scandal. searches for him on weibo today produced a message that reads "according to relevant laws and policies, 'bo xilai' can not be found." for more on this scandal, which comes in a year of political transition in china. we turn to longtime china scholar and journalist orville schell. he now heads the asia society's center on u.s.-china relations. mr. schell, welcome back to the program. what led to bo xilai's downfall? what did he do that earned him such powerful enemies? >> well, i think quite footer from any charges of corruption, which may be proven against him, i think his real affront was he was incredibly flambo

was arrested as the main suspect in the murder of british businessman neil heywood. he was found dead in this chongqing hotel last november. the furor has also extended to bo's free-spending son, a student at harvard. this week he released a statement to harvard's student newspaper denying that he was a party boy who owns a ferrari. but, he wrote, "i understand that at the present, the public interest in my life has not diminished." the same holds true for his father and seemingly, everyone connected to him, as the almost daily disclosures continue. for more on this rapidly unfolding story, we turn to richard mcgregor, a long time correspondent in beijing for the financial times and author of "the party," a book detailing the communist party's control of the country. and xiao qiang, editor of the "china digital times," an online publication. welcome to you both. what do you make of this latest bombshell, that bo chill lie's bugging system wasn't just bugging crime figures but top chinese officials. >> well, it's the latest fascinating insight into the hitherto closed