south korea -- let's say north korea implodes. and south korea sees let's say the president and the country is falling apart they are falling in anarchy. the south korea president calls in the chinese ambassador and says it's time. the window is open. it's time for us to unite with our brother and sisters, what will it take to keep you guys out of the war? and the chinese ambassador i can almost for sure tell you this will pull out a preprepared list of things and read it to the president of south korea. key of which we have the following investments in north korea. you will honor those investments when you move into north korea and we will leave you alone. because china has -- they have quadrupled their investments in north korea over the past three years. so do they have some influence? yes, sir, they do. they play a role. unfortunately, for the chinese, the north koreans, like koreans have for the past 4,000 years, continue to do pretty much exactly what they want. >> since the signing of the agreement in 1954, there has been a

kal is hoping it will increase the number of japanese travelers to south korea. it also plans to place four of the a-380s in service to europe and the united states. south korea's government drew up a five-year aviation policy last year that aims to make inchon airport an air traffic hub in asia. competition in commercial aviation between japan and south korea is likely to heat up. >>> and now a recap of the latest market figures. that's all in business news for this hour. back to catherine >> thanks very much, ai. >>> the leaders of china and russia have agreed to increase bilateral trade by more than three times and work closely on international issues. russian president dmitry medvedev and chinese president hu jintao met on wednesday. they will boost to $2 billion. >> reporter: energy is a key area to practical cooperation between china and russia. both sides want to keep pushing forward with this on a mutually beneficial and win/win basis. >> in addition, the two leaders announced that joint declaration on international affairs charging that air strikes on li

north korea proliferates ballistic missiles to south asia and africa. why would north korea be so successful? because there are so many countries to want to weapons of traditional western countries will not sell to them the have to give them from robe states central african republic lot of blanche of tea 54 tanks two years ago and they were caught taking shipment by the south african navy. why would they want to do that? three years after the war? all-white are they still manufacturing the tanks? because that is what the russians did and they want us to hold the tanks because they know people will still buy them. it is a buyer's market in seller's market and is working out well for them but there's more. north korea also proliferates to the non state actors. terrorist groups. dprk provided weapons and training to the tigers write-up until of the issue i get army drove them into the sea. i thought this was an interesting way to fight the counter insurgency knowing that it could kill the bad guys. my hat's off to them. the number three and supplied the tig

per capita income in south korea today is more than $20,000 annually. in communist north korea, just over $1,000 annually. a free and open economy made the difference. today, again, america needs to lead the way, starting with the president. the u.s.-south korea free trade agreement will eliminate or reduce more than 85% of the tariffs between the united states and korea, including the eventual elimination of a 40% korean tariffs on american beef. that is one project that we have been working on in my state. it could mean a $100 million investment in our economy and 500 new jobs. in north dakota, that is a big deal. but these free trade agreements are an even greater deal for america. the south korean free-trade agreement alone will increase our nation's exports to that country by more than $10 billion and create two hundred 80,000 american jobs. for every 4% increase in american exports, we can create 1 million new american jobs. the reality is that nearly 80% of the world purchasing power lies outside the united states. if we do not have those markets,

and south korea was five hundred dollars a year that was an average annual income for a family in south korea in the one nine hundred fifty s. in the one nine hundred sixty s. they started our policies protecting their economy and boom their economy grew the same thing in japan in the one nine hundred sixty s. i mean germany is doing right now china is doing right now india is doing right now he still is trying to right now we have helped south korea grow absolutely that's your evident absolutely. chang is that is the he wrote bad samaritans i strongly recommend you read to jamie's oxford and i'm going to hear there's plenty of economists believe that. these are protectionist policies that help us get into the great depression right god us nonsense trade is only three percent of our you know if you're upside and they're not going to tell us we are talking about somalia that have two years after the great depression people are the problem and what's happening in our politics and i hear happening on this panel is we have been so reduced to it's the labor unions for as the straw man or you

that south korea will not hesitate to strike back if the north carries out another military provocation following the artillery attack on yeonpyeong island back in november. he said china told north korea that it will no longer take sides with north if north korea takes any further provocations. lee did not say how china informed north korea about its decision nor how he obtained the information. there is a growing view that the shelling of the yeonpyeong island and the sinking of a south korean naval vessel in march 2010 were initiated by north korean leader kim jong-il's heir-apparent and son kim jong-un. the south korean government is concerned that kim jong-un may ig interior china's warning and launch a new offensive to gear up for the succession of power. >>> secretary of state hillary clinton says the philippines can count on the united states for maritime defense support. there are concerns about growing tensions between southeast asian nations and china over territorial disputes in the south china sea. clinton spoke on thursday in washington fol

north korea has been increasingly confrontational toward south korea. it recently cut off military communications and says it will no longer deal with the administration of lee myung bak. they've disclosed information about secret negotiations for an inter-korean summit. wie said that south korea is now trying to determine what's behind the growing hostility. >>> we're joined with the latest in business news. midweek we heard from the u.s. central bank and yesterday we heard from the european central bank. so the focus is on interest rates. >> that's right, catherine. and the ecb didn't raise interest rates yet for this month, but many are expecting them to do so next month. the european central bank announced that it willeep its key interest rate unchanged as the credit crisis continues in greece. at its policy board meeting in frankfurt on thursday, the central bank made the decision to keep the rate at 1.25%. in europe, the credit crisis continues in greece as it struggles to rebuild its economy. the central bank kept the interest rate unchanged at a

president, i rise today to speak in support of our pending trade agreements with colombia, panama and south koreae second was on the u.s.-korea free trade agreement. earlier the finance committee held a hearing on the u.s.-colombia trade promotion agreement. these agreements have been thoroughly reviewed by our finance committee. in fact, given that the colombia agreement was signed in 2006 and the panama and south korea agreements in 2007, these agreements have been more than thoroughly reviewed by u.s. elected officials and u.s. agencies over the past several years. for the sake of the u.s. economy and for the sake of our country's standing in the world, it is clearly time to take the next step. it's time for president obama to submit implementing legislation for these agreements to the congress. the u.s. trade agreements with colombia, panama and south korea are good agreements that will benefit the united states and american workers. according to the nonpartisan u.s. international trade commission, these trade agreements, once fully implemented, will likely increase u.s. exports by over $12 b

the day with a six shot lead and saved our here at the third hole before hitting four birdies south korea's former p.g.a. champion yank the second and one of his shots of the day was this approach on the sixteenth. just

south korea is a classic example. who would have thought that south korea would become major iron, steel and ship-building country in the world? makes no sense, right? not with the right choice of natural resources. but 30 years ago in their organized way they decided those are the industries they're going after and they built a fine product. so the asian model works really, really well from the standpoint of productivity for the country and innovation. we've got to find a way to marry that with our cultural ideals and our democracy here in america. >> schmidt says china is already starting to challenge the u.s. as an innovator, sooner than we might have imagined. >> the evidence is that the chinese companies are beginning to do things innovative. much of the new networking ideas are coming out of a company with a research campus as large as silicon valley in a far city in china. so, it's perfectly possible that these people will begin to get into the spaces is that america has historically dominated. >> everywhere yo

. >> you mentioned south korea, 2.6%, which seems extremely high. is there any -- is it better prevalent studies or is there something that may be triggering autism among south korean children? >> right. i don't think we have a simple answer at the moment. i think the study has sort of set the stage for more elaborate study in including at the environmental study but a creative study that's more comprehensive than being used here in the cdc. the korean investigators went into the general schools, the mainstream school trying to identify children who might have been missed. and shockingly, stunningly while they look at the -- just the special schools as we do here, the prevalence is about the same, about .8, .9% but the mainstream school, there was almost 2% of kids that had not been previously detected and served by the community. so i think the lessons here from our perspective is that we should think about using perhaps a more robust methodology so we can get a more accurate reflection of what's going on. >> okay. please. >> i yield. >> thank you,

. >> now, last month the leaders from china and south korea visited japan and supported government's assertion that japanese food -- i mean food from the northeast is safe. does that mean those governments will change their restrictions on japanese food? >> well, china has placed a blanket ban on food and agricultural products from fukushima prefecture and 11 other prefectures located near the damaged nuclear plant. recently it decided to ease its restrictions. also dropped requirement that documents that an item has been tested for radiation must be submitted for some imports. this will apply to dairy products, vegetables and seafood, but south korea still requires certificates for imports of food from fukushima and 12 surrounding prefectures. >> what is the japanese government doing to protect farmers and fishermen from the impact of false information on japanese food supply? >> local governments measure the level of radiation on food products before shipments go out to markets. at the fukushima prefecture, a small fish and japanese trout were found to have exceeded limits for radi

we're just going to stay the way and we just i said we're just not going to defend south korea will save a lot of money and then what happened in north koreans invaded we wanted defending south korea defense spending went through the roof if we had maintained an adequate defense a vague to begin with maybe the north koreans were never attacked never we were never had to waste a kind of money so this notion that somehow which is kind of what larry seventy four is let's just let's have just enough defense and what we think will get the job done that's great if you have enemies that are always going to cooperate this is like this is like people that say i want insurance i want health insurance but i only want health insurance for the diseases that i'm going to get there's a lot of big enemy that's going to attack us right now meaning libya didn't attack us on our soil and we're involved in that you know that's what people asked me on september tenth to who's the enemy that's going to tackle this do you think that it's worth putting our our nation in physical danger because it abso

the islets called takashima and dokdo in south korea are under korean control but japan claims sovereignty over them. maeng has young kyu made the visit wednesday. vice foreign minister kenichiro sasae protested to former vice foreign minister shin kak oo. sasae said it is unacceptable. he said japan strongly demands that no such ministerial visit be repeated. he said the islands are south korea's territory but added that he will convey the message to his government. >>> researchers in japan believe they observed something scientists have not seen until now. their experiment involved the fundamental particles known as neutrinos. they say they've seen neutrinos make a transformation that's never been recorded. the researchers say the observation could provide an important clue about the origin of the universe. the finding was announced on wednesday by a group led by professor takashi kobayashi at the high energy accelerator research organization in ibaraki prefecture. the team generated a large amount of neutrinos at the japan proton accelerator research complex taken aimed them at the supe

and the republic of south korea to conduct a successful transfer. can you give me a feel? it's been delayed. what does it mean? >> yes, sir, senator. based on what i've been briefed on, it was delayed until 2015. there has been a strategic alliance 2015 that was agreed upon by the two, our secretary of defense and the minister of defense. it was the two presidents that agreed to delay the transition. what i believe is this allowed the iraq military to continue to transform their efforts. they have several transformation efforts ongoing. they are a highly capable and competent force. what i've reviewed, there is a time line and a set of well defined milestones through the exercise program that will get us on the road to transition in 2015. if confirmed, i will review the strategic alliance 2015 and those milestones and work close with the iraq chairman and iraq minister of defense and iraq military to help progress them along on that timeline. >> let me also ask you, i know you've heard a little bit of discussion. this is more of a yes or no. but if you want to expand, feel

singapore, south korea, switzerland, iceland, hong kong, finland.said to be ahead of the united states. fareed zakaria is author of "the post american world 2.0" and he's hosting a show called "the american dream." is this true? do you believe that sort of ranking? is that a fair evaluation of where the u.s. is in terms of innovation? >> ali, it's a fair evaluation of where the trend lines are moving. these are all per individual numbers, so if you were to look at the aggregate number, it's probably quite far ahead, but that lead is shrinking every day. and the reason this is crucial, ali, is the jobs of the future are going to come in the united states out of innovation and innovation-based industries. we don't have a steel industry anymore. the auto parts businesses are all going to china and indonesia. we're not going to be able to compete in the low wage manufacturers or even low wage services. the places we'll find new jobs is going to be the high-tech, innovative business products, so if we lose this race, we're going to lose the standard of l

sing pore, south korea, switzerland, iceland, ireland, hong kong, finland all reported to be ahead ofhe united states in innovation. that is according to two notable consulting groups. fareed zakaria is the host of cnn's "fareed zakaria gps." he's the author of "the post-american world, 2.0." he's hosting a special program on sunday 8:00 p.m. eastern called "american dream, how to innovate." always a pleasure to have you here. is this true? do you believe that sort of ranking? is that a fair evaluation of where the u.s. is in terms of innovation. >> it's a fair evaluation of where the trend lines are moving. these are all per capita numbers, per individual. if you were to look at the big number, the u.s. is still quite far ahead. but that lead is shrinking every day. and the reason this is crucial is the jobs of the future are going to come in the united states out of innovation and innovation-based industries. we don't have a steel industry anymore. we don't have -- the auto parts business is all going to china, india, indonesia. we are not going to be able to compete in the low-wage

i'm anxious to hear what our viewers think. >> south korea also has, what? e third largest standing army in the world and a vibe rants economy. >> facing almost a million south korean troops and 20 or 25,000 u.s. troops in between. something like that. >> and we've had those people there for 50 years. >> correct. >> the south korean economy is probably more vibe rants than ours is and better able to afford their own defense than we are keeping these standing armies scattered around the globe. the sheriff's got a point, you know? he's getting killed by the illegal immigration problem and we've got almost 30,000 soldiers guarding the korean border. >> jack, thank you. >>> cnn is using global resources to expose the trade of exploitation of people around the world. it's called the cnn freedom project. sarah has more of her exclusive reporting from india. this is a raid, a small police operation with a big mission to rescue workers enslaved because of debt. the factory is open, but empty. it appears the police are too late. whyss whose place is this? who are you,

-south korea free trade agreement will eliminate or reduce more than 85% of the tariffs between the u.srea, including the eventual elimination of a 40% career in tariff on american beef. -- korean tariff on american beef.

with a marshall plan to the occupation of hundreds of bases around the world, the occupation of south korea. the united states found itself ruling other people for the first time on such an extraordinary scale. and it was a role to which americans were unaccusme

and south korea fought against north korea and what other nation?t union, japan, china or vietnam? stay tune spd we'll tell you the correct answer and why we asked the question. make sure you go to cnn.com/gps for ten more questions. check out our website, the global public square where you'll find smart interviews, blogs, takes by some of our favorite experts. you follow me on twitter and facebook. this week's book of the week is by robert reich "aftershock" looks at what reich says are the underlying causes of the economic crisis and he has solutions for fixing it. if you like what he had to say earlier or if you disagreed with him completely, i think you'll find the book stimulating. he writes with clarity and passion about big economic problems. now for the last look. thames town is a typically idyllic british town. you can't miss the red telephone booths. you can see the london taxi or black cab and the local tudor style pub with real ale, lovely for a summer holiday. how do you get there? don't go to england. thames town is not by the river th

imported into south korea.ma administration has just negotiated a new trade agreement with south korea, which removes that disparity. that is very important. we have to be sure that the trade agreement with dr. not disadvantage the home team, which is america, and when we adopt them, we have to enforce them. we have to make sure the playing field is level. host: ray from florida. caller: i am waiting for the drill baby drill, palin corwd to -- crowd to raise their heads. my neighbors are ready to put a drilling rig it in their backyard picnic we will not see -- in their backyard. we will not see the price go down -- most of the oil goes to the highest bidder, which are china and india. mobil drilling -- more drilling will not even touched the price of gas. guest: since the obama administration has come into office, the amount of domestic oil production has increased by 11%. you have not seen a corresponding drop in the price 11% because oilt is sold on a global market. because we're not competing for those reso

and the republic of south korea to conduct a successful transfer. can you give me a feel? it's been delayed. what does it mean? >> yes, sir, senator. based on what i've been briefed on, it was delayed until 2015. there has been a strategic alliance 2015 that was agreed upon by the two, our secretary of defense and the minister of defense. it was the two presidents that agreed to delay the transition. what i believe is this allowed the iraq military to continue to transform their efforts. they have several transformation efforts ongoing. they are a highly capable and competent force. what i've reviewed, there is a time line and a set of well defined milestones through the exercise program that will get us on the road to transition in 2015. if confirmed, i will review the strategic alliance 2015 and those milestones and work close with the iraq chairman and iraq minister of defense and iraq military to help progress them along on that timeline. >> let me also ask you, i know you've heard a little bit of discussion. this is more of a yes or no. but if you want to expand, feel

many asian countries like india, south korea and vietnam place a premium on boys which lead some couples to abort their babies once they find out it's a girl, it's practiced in ar maine ya, her law makers -- calling special attention to china's holiday which they say has resulted in killing 50 million girls. >> i believe china should be at the hague answering crimes against gender, crimes against humanity for what they have done. >> the assault also targets the united nations politician fund, so when the states asked the politicians, all girls allowed said the u.n. population fund. >> we have two days to vote and we were able to get the votes in and the council decided to do the cutbacks. >> it's one of those issues that has obama reinstated. it's our hard earned tax dollars has to go to things that are better. >> they see it as a win, win, it's not about cutting spending and saving money, it's also about saving longs. capital hill. >> when the reynolds family adopted threes of triplets from russia, they had a set of biological twins, that made 11 children in the family and they're part

european nations will open the valves for about 30% and japan and south korea will supply the remainingr about 10 million barrels. nina. >> andrew, it's only the third time members of the iea have tapped the strategic reserveless. they did it twice, once during the gulf war and once again during hurricane katrina. the market intervention comes at a time when spare oil capacity is in short supply and all of that is within opec. saudi arabia has supplied one to make up for libya's shortfall. cue wait and the united arab emirates are thought to have around half a million barrels. with libya's war months old, the question is why now? earlier this month opec ministers agreed to disagree on raising their own production can quo quotas. that quota is currently 24.84 million barrels of oil a day since back in december 2008. if you actually factor in the likes of iraq, as you can see here, out put is quite a bit steeper than that, currently over 29 million barrels. last month when opec did not act and, of course, with worldwide strox become depleted, it was time for the iea to act as its head tel

and with meari it dumped heavy rain in south korea and china.a as an engineer vessel got caught up in the storm. rough seas churned up by thunderstorm meari. folks in trouble, 12 crew member had to be extricated. but everybody is in good shape. unfortunately, those are the lucky ones. we did have death not only into china but the philippines, as well. an unfortunate scene there. we are done with tropical storm meari. if you are watching the skies, we do have an asteroid, going come to see come close to earth but not hitting us, point your telescope to the north. that will do it for weather. stay with us. "world business" continues after the break. >>> from cnn hong kong, i'm andrew stevens. >> and i'm charles hodson at cnn london. welcome back to "world business today." back to our top story now, the battle that greece's prime minister george papandreou is finding out in parliament there in athens. ministers are discussing the latest austerity plan. it's $110 billion in new measures, and lenders say it must be passed if athens is to receive addi

. >>> south korea's top intelligence officials say north korea has set up a new riot squad to prepare for possible middle east style demonstrations. the director of the national intelligence service made the remark at a closed parliamentary committee meeting on wednesday. a lawmaker who attended quoted him assaying that public frustration is mounting in the north over the crumbling economy. the riot squad is equipped with foreign-made pull lut proof vests to prepare for a possible uprising in the middle east. he warned that the north could conduct another round of cyber attacks on computer systems at financial institutions, power companies, and airlines in the south. >>> nhk has shot footage of a chinese naval ships in okinawa. the defense ministry and self-defense ministers confirmed that the ships were in the sea. three ships were sailing towards china at waters about 120 kilometers northeast of miyako island from 5:45 p.m. to 6:25 p.m. on wednesday. they are the chinese navies most advanced category. the ships are part of a chinese naval fleet which conducted live firing drills in

government officials, asian government officials, in particular south korea, chinese political activists, if you look at that list, it appears whoever was carrying out this hacking did have some form of political motivation because all those people have access to sensitive information. >> doesn't the u.s. have its own e-mail system? it seems odd they would use a system that millions of people around the world also use? >> i'm pretty sure these were e-mail accounts of government officials. i don't think there is anyway that the official e-mail accounts or anyone who has attempted to actually, as we know, hack into the official e-mail accounts of the u.s. government. but google said this appeared to take place in eastern china, but halfway down china in a city there. there is no suggestion at this stage that the chinese government was directly involved. but there has been a scam in the past, as you mentioned in the introduction, that targeted google before, and google once again seemed to point the finger toward china. experts say it is difficult to pin point exactly where a hacking scam l

the white house and capitol hill have worked out agreements on colombia, panama and south korea thatncludes aid for american workers that are displaced when companies go overseas. we'll hear more about that and medicare when those all-important deficit talks when president obama gives a news conference later this morning. >> tracie potts, thank you very much. >>> in afghanistan, the taliban is planning responsibility for a rare nighttime attack in the capital of kabul. a four-hour standoff between militants and police saw at least 11 afghan victims killed, mostly hotel workers, along with eight attackers. nato helicopters brought the siege to an end by firing rockets at gunmen on the roof of the intercontinental hotel. >>> here is a look at other stories making news early today in america. surveillance video in massachusetts show that alcohol and elevators do not mix after a teen plunged 20 feet to the ground. the teen had been drinking before he decided to horse around on the handrail. but luckily his fall left him with just a fractured elbow. >>> a cleveland nursing home was the si

but new trade deals with panama, colombia and south korea have been stalled in congress for months. that standoff may soon end. washington bureau chief darren gersh spoke with u.s. trade representative ron kirk. kirk also is the former major of dallas. darren began by asking why it's been so hard to pass these trade agreements. >> well, because you're in washington. and everything is, you know, everything is hard in this town. but the reason that we took the time to look at korea and panama and colombia, not just from the standpoint of what does it take to pass them, but look at them in the broader context, that what 95% of the world's consumers somewhere other than the united states, part of our success in the future is going to be linked to our ability to take more of what we make, manufacture, innovate, create here in the u.s. and share it with the world. and so within that you've got to have a trade policy that not only speaks to those that say hey, pass these agreements, get going, we need the market access but you've also got to have a trade policy that reflects those that say

established dozens of military bases on the island today along with south korea and due to its proximity to china and taiwan okinawa still represents america's military stronghold in east asia the island hosts thirty eight u.s. bases which house a force of thirty five thousand soldiers. when the where. the growing tension between the u.s. and the soviet union following the war led to an unprecedented global military buildup and to a strategy of exploitation of people's fears that in various forms has continued to this day. you know how bad the the atomic bomb why it's good for you worse than a terrible sunburn specially where you're not covered. in those years america expanded into new territories such as the case of diego garcia a small island in the indian ocean part of the british overseas territories whose inhabitants got caught up in the global power struggle. nobody seems to know that diego garcia used to have a very considerable population it was all entirely bundled up and shipped out in order to as the u.s. navy put it sanitize the players the u.s. wanted a base an indian ocean

the 37-year-old from south korea admitted to hiring women to work as companions for male customers. much generated out of a karaoke bar called honey. he would recruit the woman online and house them in his own home and a nearby apartment. it was actually he himself who tipped them off. >> he came to us almost a year ago with the intent of wanting to have us work investigations against his competitors. >> he faces up to 10 years in prison when he is sentenced. he could be deported because investigators say he is here illegally. >> we'll find out what's next for a d.c. council member accused of corruption. they met behind closed doors to talk about harry thomas jr.'s situation. he's accused of spending more than $300,000 in district money on lavish trips and an expensive suv. that chairmanship could be stripped from him. they filed a lawsuit to try to get the money back. >>> montgomery county police are investigating the stabbing of a 12-year-old honor student. she was found dead last week inside her family's townhome. they're not sure if the girl was killed by someone she knew or a s

japan's loss, however, was south korea's gain. sales for the hyundai kia group sailed 6%.hey recalled prius hybrids for a steering nut that may come loose. google says it prevented hackers in china from breaking into hundreds of gmail accounts of u.s. officials, chinese activists and journalists. >>> finally, here is something to raise your glass to. last year for the first time ever, the united states consumed more wine as a country than france. cheers to that. >>> walking off after the replay. an oriole flashes the leather, and shaq won't be back. plus, it all comes down in the final seconds in the first game for lord stanley's cup. your early morning sports headlines are straight ahead. >>> in weather, the southern half of the country continues to bake in the june heat and more severe storms. your forecast is coming up. you're watching "early today." >>> good morning. if you're just waking up, this is "early today." in sports, the stanley cup finals opened last night with a classic nail biter. here's nbc's fred roggin with an early look at all your sports headlines. >>>