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Sony CEO Speaks Out On Hack; North Korean Defector Says Chinese City Headquarters of Hackers; Leading Women: Christine Lagarde; Weather Continues To Frustrate Indonesian Search and Rescue Crews; Inside the Battle for Aleppo; Has Fight Against Ebola Turned Corner?

Aired January 6, 2015 - 08:00:00   ET

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


KRISTIE LU STOUT: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream where news and technology meet.

Now a Sony CEO speaks out for the first time about the devastating hack on his company's movie unit.

We visit the town where some say North Korean hackers are operating in China.

And we speak to the former head of the UN's Ebola mission about the continuing fight against the deadly virus.

In the U.S., the focus is back on cyber security. And as Sony's CEO Kazuo Hirai has spoken out publicly for the first time since that

devastating hack on the company's movie studio. More on his comments from the Consumer Electronics Show in Las Vegas in just a moment.

And an hour from now FBI director James Comey will talk about how to put a stop to this kind of cyber warfare at an international cyber security

conference.

Now the White House has blamed the North Korean government for the Sony hack attack, something Pyongyang denies.

Now a North Korean defector says one key location for his country's hacking activities is in China. Now he told our Will Ripley that

businesses owned and operated by Pyongyang are providing perfect cover for hackers.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN CORRESPONDENT: Shenyang has the neon glow of a typical Chinese city. Beneath the bright lights, an unusual sight, the

flag of one of the most isolated countries on Earth.

This is the state-owned Pyongyang restaurant.

Kimchi?

UNIDENTIFIED FEMALE: Kimchi.

RIPLEY: The waitresses are here on what's considered a prestigious three year assignment. They say they're all from the same university in

Pyongyang.

Nearby, the Childosan Hotel (ph), a joint venture between North Korea and China. The art, like everything else -- pure Pyongyang propaganda.

This is North Korea state TV playing right now in our hotel room.

Hallways are kept dark just like in North Korea, which struggles with electricity shortages.

Shenyang is the biggest Chinese city near North Korea, a place where many from Pyongyang come to work.

This defector says they also come here to hack.

"It's easy for them to work secretly. It also has great internet infrastructure," says Kim Hyun-kwan (ph).

The former Pyongyang computer science professor claims North Korean hackers operated secretly in Shenyang for years. Kim says some of his own

students became cyber warriors for the hacker network known today as Bureau 121.

"By day they worked regular jobs," he says, "but the rest of the time they were acting on orders from Pyongyang."

Kim says hackers often worked out of the basements of North Korean- owned buildings. He's found no evidence any hacking activity was occurring at the places we visited, but says locations were kept secret and

constantly changing.

"When they enter China," he says, "they come under different titles. For example, an office worker, an official with a trade company, or even as

a diplomatic staffer."

North Korea has a consulate in Shenyang just minutes from the hotel and restaurant. Representatives for that consulate, the embassy in Beijing

and government officials reached by email in Pyongyang tell CNN they have no comment on the defector's claims.

For its part, China says it opposes any illegal cyber activity on its territory.

In the middle of a bustling Chinese city, a hub for North Koreans and questions about what's really happening beneath the surface.

(END VIDEOTAPE)

LU STOUT: Let's bring in CNN's Will Ripley for more now. He's live from Beijing.

And Will, we learned from your report that North Korea has relied on China for internet connectivity, but China's reaction here. Will China

pressure North Korea on the Sony hack?

RIPLEY: Well, what we're seeing as far as a response from China, you heard in the piece that China certainly does not condone any illegal cyber

activity. And we know that they do have some influence over North Korea's internet in the sense that, you know, long before North Korea had its own

internet connection they would dial in to servers here in China. And then today, still, nearly all of North Korea's internet traffic is routed

through China.

However, what we have heard from the foreign ministry here in Beijing is encouragement that the United States and North Korea talk directly to

each other. So, Kristie, it appears China doesn't want to be caught in the middle here even as they condone any illegal activity, as they put it.

LU STOUT: And Will what did the defector tell you about the sophistication of this Bureau 121 and whether he believes that North Korea

is capable of carrying out something as sophisticated as the Sony hack?

RIPLEY: It really is fascinating, Kristie. Considering that, you know, North Korea just connected directly to the internet four years ago,

but they were developing this cyber army, according to Kim, the defector who we spoke to. They started developing it in the mid-90s. And they say

the activities here in China really peaked from 2005 to 2011, that was before North Korea had readily available high speed internet in Pyongyang.

So, he says during those years, from '05 to '11 you would see a lot of hacking activity happening in China -- codes, monitoring the internet,

learning about different systems and whatnot. And he says even though that activity has now shifted to Pyongyang primarily, he says hackers are still

operating in other countries. And if, indeed, they did launch this cyber attack as the United States claims, we have seen the sophistication of

being able to infiltrate systems, steal information and use it against, in Sony's case, a major corporation.

LU STOUT: And Will, why does North Korea launch cyber attacks? I mean, does it do it to intimidate or to do and carry out real world damage?

RIPLEY: Well, certainly their neighbor to the south, which also suspects North Korea of cyber attacks, specifically on banking systems, on

broadcasters, it's an intimidation factor to say the least. It's also an opportunity for a small, relatively poor relatively poor country to make a

very big impact for a limited amount of money.

Even though North Korea has a very large military. They spend a lot of money on developing their military, their nuclear program, cyber attacks

level the playing field, don't they? Because you don't need that many resources financially or personnel-wise, you just need somebody with skills

and a computer and you can inflict a tremendous amount of damage.

LU STOUT: All right, CNN's Will Ripley reporting live from Beijing, thank you Will.

Now let's go now to the Consumer Electronics Show in Las Vegas where the CEO of Sony made his first public statement on the cyber attack on his

company. Now CNN's business correspondent Samuel Burke is there. He joins us now.

And Samuel, there at CES, the Sony CEO, again, he spoke out for the very first time on the hack attack. What struck you about what he said?

SAMUEL BURKE, CNN CORRESPONDENT: All eyes and ears are on Sony at CES this year, Kristie. And keep in mind that Sony in Japan has largely kept

silent. They don't interfere that much with Sony Pictures. And so when Kazuo Hirai finally spoke about this hack he called it vicious and

malicious, that really stood out to me.

Take a listen to exactly what he said.

(BEGIN VIDEO CLIP)

KAZUO HIRAI, CEO, SONY CORPORATION: I have to say that I'm very proud of all the employees, and certainly the partners that we worked with as

well who stood up against some of the extortionist efforts of the criminals that actually attacked Sony Pictures and its employees and worked

tirelessly, literally 24 hours a day, sometimes on days on end, to bring The Interview to audiences here in the United States and also up in Canada

as well, across online venues as well as in motion picture theaters across the United States and Canada.

(END VIDEO CLIP)

BURKE: Kristie, something that stood out to me when he said that was the word partners. He thanked the employees, but also the partners. And I

really think that he was referring to YouTube there. And they may be the unsung hero in all of this, because we know that behind the scenes Google

and Youtube -- Google, of course, owns YouTube -- was really one of the first groups to step forward and say we're going to help you get this movie

out when other tech companies, other streaming companies, weren't brave enough to stand up and say we're going to get this movie out and stand up

for freedom of speech Google and YouTube stepped forward. And I think that's what he was referencing with the word partners there.

LU STOUT: At the end of the day CES is a product show. And Sony also unveiled some new gadgets there in Vegas. This GoPro rival camera. And

also a new and very pricey Walkman. What can you tell us?

BURKE: Well, Kristie, I remember when I thought it was a lot of money to save up for my first Walkman. I think my parents asked me to put in $30

to it. And so I was saving and saving.

This is the new Walkman. It's called the ZX2. This one, though, a little bit higher pricetag, $1,119.99. Now they say the reason it costs

that much is because Sony is marketing this as the HD of sound, the way you think of HD televisions or 4K televisions, they say this has an incredibly

high sound quality.

So it's for a specific group of people who are looking for that high sound quality. And they have to have a specific type of wallet as well

Kristie.

LU STOUT: Yeah, a $1,200 Walkman you're holding right there, a very niche market indeed.

And finally, Samuel, we've got to talk about TV tech, because there's been this lineup of beautiful screens unveiled at CES. What caught your

eye?

BURKE: I'm always a bit dubious of all these amazing televisions, because, yes, they look great, but they cost so much and it's a long time

before you actually see them in anybody's living rooms. I haven't seen anybody with a curved television. Maybe I need friends with better

wallets.

But I have to say these new televisions with what they call Quantum Color, Samsung has a new line out, the color really is incredible.

I had a chance to talk to Tim Baxter who is the head of Samsung Electronics in the United States and asked him what this color really means

for these televisions and the viewers of these television sets.

(BEGIN VIDEO CLIP)

TIM BAXTER, SAMSUNG U.S.: It's going to raise the bar of color and brightness.

And we're overlaying new technology, not only UHD, but now the top of the top which is SUHD. 4k and UHD, they're and the same.

(END VIDEO CLIP)

BURKE: Really incredible color, Kristie. I don't think I've ever seen color like that in my life except for maybe a trip to the Caribbean.

When you walk in and see these television sets, it is a new line of color. And it's really interesting to me to see the old HD sets next to these 4k

Quantum Color sets. HD looks so old the way that I see old 4x3 videos at CNN that we shot back in the day. Now all of a sudden HD looks kind of old

and dull next to the colors.

So, once these get into your living room I think we'll all notice the difference. And you'll notice the difference in your wallet as well.

LU STOUT: Yeah, it's incredible to hear about that resolution difference. But it comes at a price.

Samuel Burke reporting live from Vegas for us. Thank you, Samuel, and take care.

Now if it feels like almost every CES brings a new type of television technology, that's because it's true. Curved TVs actually made their debut

at CES last year. And before that, CES saw the introduction of Ultra HD/4k television, and internet connected smart TVs, and 3D TV, and ultra thin

OLED TVs.

But all of these different television technologies never quite caught on the way HDTV did. Now that was also introduced at CES all the way back

in 1998.

Now, you're watching News Stream. Still to come, we've known for days that search teams think they found large pieces of AirAsia flight 8501, but

getting to them is proving to be extremely difficult because of the weather. Has today been any different? We'll go live to Indonesia.

Also, one of the West African nations hit hard by Ebola may finally be gaining the upper hand. We'll hear from someone who has just been to

Liberia to tell us where things stand and whether there's reason for optimism.

Plus, Syria's fight for control could boil down to one small piece of territory in the city of Aleppo.

(COMMERCIAL BREAK)

LU STOUT: Now another day is ending in frustration for search teams in the Java Sea. And divers were once again poised to search its waters

for wreckage from AirAsia flight 8501, but like most other days since the crash the weather is making it too dangerous for them to do their work.

Now CNN's Anna Coren is part of our team of reporters tracking all the latest developments. And she's with us now from Surabaya Live.

And Anna, the weather continues to hamper the search effort today. And yet more victim' remains have been retrieved.

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yeah, that's right, Kristie.

As you can imagine, great frustration felt by those members of the search and rescue team who once again were hampered by the bad weather in

their efforts to find the bodies, the plane wreckage and of course those essential black box flight recorders.

Divers had every intention of getting into the water, but the two divers who got in ruled that it was just such bad visibility so the mission

was called off.

As you say, another two bodies were found, taking the total number now to 39. And we spent time, Kristie, with the man in charge of the gruesome

task of identifying those bodies.

(BEGIN VIDEOTAPE)

COREN: The agony and suffering of so many families weighs heavily on his shoulders.

UNIDENTIFIED MALE: Family assistance center and the crisis center.

COREN: But this 55-year-old police forensics commander can't let it in. He's learned over the years not to, otherwise the scale of death he's

witnessed throughout his career will destroy him.

UNIDENTIFIED MALE: We go through the LL (ph)...

COREN: Dr. Anton Castilani, head of Indonesia's disaster victims' identification unit, is running the painstaking operation of identifying

the bodies of AirAsia Flight 8501 that crashed into the Java Sea over a week ago.

It's a slow and difficult process, especially as the days drag on.

ANTON CASTILANI, HEAD OF DISASTER VICTIMS IDENTIFICATION UNIT: Lately, you'll find the dead bodies more decomposed and after the next few

days you'll find maybe not in an intact body, you'll find a fragmented body or maybe worse than that.

COREN: While it's gruesome work, his team is not immune to the horror of disaster.

In 2002, they dealt with the aftermath of the Bali bombings that claimed 202 lives. Then, the Asian tsunami in 2004 swallowed up parts of

the Indonesian coastline and elsewhere in the region, killing more than 200,000 people.

With too many victims, they could only number the bodies before burying them in mass graves.

CASTILANI: Sometimes we used to say that Indonesia is the supermarket of disaster. We have any kind of disaster here.

COREN: His experience allows him to call upon friends who have helped out in previous disasters -- Australia, Singapore, Korea, Malaysia and the

UAE, sending in forensic teams to assist.

STEVE SARGENT, UAE DVI UNIT: It's a difficult job to do. And the Indonesians are very good at it, they've had a lot of experience,

unfortunately. And we're looking at developing ourselves in the UAE to do the same.

COREN: While Indonesian authorities have promised the families of the victims that everybody retrieved will be identified, the harsh reality is

that not all 162 passengers and crew will be recovered. It's a fact not lost on Dr. Castilani and his team here at this hospital who are under

enormous pressure to reunite the dead with their loved ones.

Forensic officers will now have to rely on teeth and bone to ID the victims, skin on fingertips no longer useful due to the state of

decompisition.

And while working with the dead is part of their job, Dr. Castilani admits it takes a toll on his staff.

CASTILANI: Sometimes after one or two weeks, we'll find out that this is flesh, human flesh, not belong to anymore anything. Sometimes that

affect you.

COREN: For now, though, they push those dark thoughts to the back of their minds, knowing their work will help somehow ease the family's pain

and sorrow.

(END VIDEOTAPE)

COREN: But Kristie as you can imagine we're up to day 10 of this search and still no pings from the black boxes. They have some 20 days

until the batteries run out. And then, you know, it really will a difficult task to find out exactly what happened to this AirAsia flight.

LU STOUT: That's right, the clock is ticking to find those black boxes and to get some answers. CNN's Anna Coren reporting live from

Surabaya, thank you, Anna.

Now you're watching News Stream. And coming up next, what must be done to contain Ebola in 2015.

Plus, the man who just stepped down as the head of the UN's Ebola mission.

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong, you are back watching News Stream.

Now we want to turn our attention to the global fight against Ebola. Now there are new signs of progress in Liberia, one of the countries hit

hard by the outbreak.

Now officials plan to reopen schools there next month. They were closed back in July as part of the effort to contain the deadly virus.

Now more people have died of Ebola in Liberia than anywhere else. The country has seen a recent decrease in the number of cases, in fact the

World Health Organization counts more than 8,000 deaths and nearly 21,000 confirmed or suspected cases of Ebola in West Africa.

Now right now the new head of the United Nations Ebola mission is visiting those affected countries. He took over the work from Anthony

Banbury, who joins us now live from CNN New York.

And Anthony, thank you for joining us here on CNN International.

You recently completed a six day tour of the Ebola affected region in Africa, including Liberia. Were you encouraged by what you saw there?

ANTHONY BANBURY, DIR. UNITED NATIONS EBOLA MISSION: I was encouraged by a lot of what I saw. That was the sixth trip I had made in the last

three months throughout the region. And every trip we saw a little more progress being made. We saw improved situation on the ground, more

response capabilities being deployed.

We were far behind this disease when we first deployed. It had a big headstart. I think we've caught up. We're ahead of it now. And we're

making good progress.

LU STOUT: Have you caught up in the remote areas as well. I understand you went to remote areas while visiting Africa. Did you see

enough treatment centers there, enough burial teams, or is more help needed?

BANBURY: We do have enough treatment centers on the ground. We do have enough burial teams. But you're absolutely right, the challenge going

forward is the remote areas. To defeat this disease, we need to be present throughout Guinea, Liberia and Sierra Leone, we need to be able to have an

early detection capability for when there are just a few cases. We know about them early. And we need to be able to respond quickly.

If we're able to do that, we can shut it down. The problem is now in some rural areas a few cases become 20 cases become 40 cases. And that's

what we have to avoid.

LU STOUT: Yeah, a few cases can become many cases. And you have said the only option here is to get to zero cases. How do we get to zero cases?

BANBURY: It's going to be hard, it really is, there's no doubt about it but we have to do it, any other option is just not acceptable. The

costs in human lives, to the economies, to the education system that you were referring to a moment ago would be just far too great.

The way to do it is to have very strong disease surveillance capability built into the national systems across the three countries and

then that ability to respond very quickly.

These governments are going to need some strong international support going forward, no doubt about it. But we have to help them build their own

national health systems so that they will be able to not just for this crisis shut it down whenever there's a small little outbreak, but when this

is all over, we have to make sure we never have a repeat and that the national health systems are able to detect disease as quickly and respond

quickly.

LU STOUT: And when will it all be over? When will the Ebola outbreak end? And could it end this year in 2015?

BANBURY: The UN Secretary-General Ban Ki-moon was also just out in the region. And he gave us very clear marching orders that we need to have

a short-term perspective not a medium-term one. He wants it over in 2015. I think it can be done. I think it should be done.

The world needs to invest the resources necessary to make it happen. The United Nations is doing that. We've had a big mobilization on the part

of the UN, but also other partners like United States, Cuba, African Union, China, many are responding. I believe we'll shut it down in 2015.

LU STOUT: And as the former head of the UN's Ebola mission, what memory of the outbreak will always stay with you?

BANBURY: There are so many, but two really stick out in my mind. One is visiting an Ebola treatment unit in rural Sierra Leone. It was very

well run by the International Federation of the Red Cross. Behind it, though, was a cemetery, a cemetery that I visited, and there were a number

of freshly dug graves with headstones, names of people who had died, their ages, but what was even more difficult were the empty graves. They had

been dug and they were waiting for people from that center who were not going to survive. And that conveyed just the huge responsibility we as the

United Nations and responders had to make sure we could end the disease as quickly as possible, prevent more graves from having to be dug.

Much more encouraging, though, just a few days ago when I was in rural Liberia in a placed called Serkwele (ph) up by the Guinea border, I met a

young girl named Esther (ph) who was a survivor, a 10-year-old girl. She had lost her father, she had lost some siblings, but she was just so full

of spark and life and energy. And it was so encouraging to see that with the right treatment, with a big response, we can help people like Esther

(ph), but also prevent more people like her schoolmates or village neighbors from catching this disease.

So, it's inspiring work that we're doing, but it's also work with a lot of responsibility. And we have to do it well. And we have to do it

fast.

LU STOUT: And our viewers around the world can watch that inspiring video of Esther (ph) off of the UN mirror website. I saw it off of

Twitter.com/UNmirror, your YouTube channel as well. Very inspiring. She says in English, I survived. I lived.

Anthony Banbury, we'll leave it at that. Thank you so much for your work and for your effort. The Ebola outbreak must stop for the sake of

Africa and our shared humanity. Thank you for joining us here on CNN and take care.

BANBURY: Thank you very much.

LU STOUT: Now you're watching News Stream. And still to come on the program, we have a CNN exclusive. We take you to the frontline as Syrian

rebels launch a surprise attack on government forces.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching News Stream. And these are your world headlines.

Now harsh weather is still hampering the search for victims and the main wreckage from AirAsia flight 8501. Divers were once again kept out of

the Java Sea on Tuesday because of the rough conditions. But search teams did recover two more bodies. A total of 39 victims have been found so far

out of the 162 people who were on board the plane.

Now the slide in oil prices is continuing into the new year. On Monday, U.S. crude fell below $50 a barrel for the first time in almost six

years. Amid those falling prices, financial markets are lower from Wall Street to Asia.

Jordan's Prince Ali bin al Hussain says he will run for president of FIFA, the governing body of world football. He says it's time to put the

focus back on sport. Now under the leadership of incumbent Sepp Blatter, FIFA has been hit by allegations of corruption in the World Cup bidding

process.

Now CNN has obtained exclusive footage from the front line of Syria's civil war. It shows part of a key battle for Syria's largest city Aleppo.

Senior international correspondent Nick Paton Walsh gives us a rare glimpse inside this nearly four year long civil war.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN INTERNATIONAL CORRESOPNDENT: In the abandoned mountains of Syria's old elite, a vital battle for its biggest city is

reaching peak. This is just outside Aleppo, Khandaras (ph) key to the last remaining supply line for rebels into the city.

If the regime takes this, tens of thousands of civilians in rebel areas will be besieged.

They show our cameraman, Gabriel Chaim (ph) the regime positions. Now they begin with a surprise attack.

Across open ground, these men are young, breathless, but in this war's carnage that amounts to experience: so many do not last long.

"These are the farms that the regime army took," this commander says. "And they took it, because Arab countries let us down by not giving us

weapons."

Iran is supporting Bashar's army.

There's is a mad dash towards a better equipped regime. Then, position by a dirt wall.

"Shoot now, guys," he says.

"It looks like the 23 millimeter machine guns will shoot at us now," they laugh and then pull back reminding each other to conserve ammunition.

Even three years in, they still fight with makeshift or light weapons.

"Here, we only have Kalashnikovs or grenades," he says, "light weapons against the weapons of mass destruction that the regime have. We have

nothing, only god in the face of the regime and their allies."

A cry of the faithful amid the loneliest, most vital fight.

They take Gabriel to another front line near the airport, another regime stronghold in Aleppo.

UNIDENTIFIED MALE: You see that building there?

UNIDENTIFIED MALE: Yes.

UNIDENTIFIED MALE: That building, the army is over there.

UNIDENTIFIED MALE: It's very near.

UNIDENTIFIED MALE: 50 meters. I think from this point, 50. And another point there, 15.

WALSH: This is their day-to-day existence, cat and mouse amid the rubble of their old world, a stalemate that has swallowed Syria's

commercial hub for two years now.

They fire at the regime. That crack is them returning fire with heavier weapons.

We're shown the firing position through which they can see their enemy.

Our guide has moved back.

"Ach," he says, "I'm hit. The bullet exploded near my face. No, I'm covered in fragments."

The wounds are superficial, though.

First front line you saw around Khandarat (ph) is so key, because if the regime do manage to take it, then potentially 65,000 families, that's

about 300,00 people, risk being besieged by the Syrian government army's soldiers.

Now aid workers are warning of a humanitarian catastrophe if that does happen. Already inside Aleppo this winter, they're burning trees, any wood

they can find growing naturally there for fuel. They're running short of food. They're having problem getting clean drinking water. And many are

worried about the level of warmth children can have inside the shell of that city. If they're besieged, things will get an awful lot worse.

Nick Paton Walsh, CNN, Beirut.

(END VIDEOTAPE)

LU STOUT: And that footage was captured by photographer Gabriel Chaim (ph).

Our series continues at this time tomorrow with a look at Aleppo's secret schools. In all the fighting, these children still insist on their

right to an education.

Nick Paton Walsh introduces us to a teacher whose classes have been bombed five times.

Now you're watching News Stream. And still to come, in its 70 years, she is the first woman to head the International Monetary Fund. Now

Christine Lagarde sat down with CNN to share her experience leading through a global economic crisis.

(BEGIN VIDEOTAPE)

LU STOUT: Welcome back.

Now Christine Lagarde is one of the world's most powerful leaders. And as the first woman to head the International Monetary Fund, she has

shattered gender barriers there.

Now CNN was given rare access to her over four days spanning three different countries. And in this week's Leading Women, she told our

Gabriela Frias how she feels about being a role model.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Christine Lagarde, welcome.

UNIDENTIFIED FEMALE: Richard Quest caught up with the IMF chief Christine Lagarde earlier today.

RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT: Christine Lagarde.

CHRISTINE LAGARDE, IMF CHIEF: Behind every success story I think there is hard work.

I need to check my papers so that I know exactly what I'm going to do.

There is dedication. There is no random success.

GABRIELA FRIAS, CNN INTERNATIONAL CORRESPONDENT: By many accounts, Christine Lagarde is a success story. She is the managing director of the

International Monetary Fund. She holds the world's checkbook and holds her own with world leaders.

From Washington, D.C. to Peru to Chile, we were granted unique access to the woman force called the fifth most powerful in the world, the very

first woman to lead the IMF.

Our cameras went through the IMF board room in Washington. On the walls, you could see the portraits of...

LAGARDE: Many men.

FRIAS: Many men, directors that came before you. How do you feel about it?

LAGARDE: You know, I feel even worse when I look around the table, unfortunately, because there is only one female executive director out of

24 around the table. I hope that there will be plenty of other female paintings, but more importantly many females sitting at the table.

FRIAS: But do you feel the significance of being the first woman leading the IMF?

LAGARDE: Yes, I do. And that's the reason why I think I have to do a good job, because I don't want to let my female colleagues around the globe

down. I don't want them to turn around to me and say, you know, why did you make a mess of it?

FRIAS: Lagarde has always been a pioneer. She was the first woman to chair the global law firm Baker and McKenzie, the first female finance

minister of France. When Lagarde took over the IMF in 2011, the organization was in the middle of a sex scandal involving the former

managing director and in the middle of a global economic crisis.

Do you think women are more capable to lead through a crisis?

LAGARDE: You know, I simply observed that quite often when there is a very difficult situation women are called in to do the work, to sort out

the mess and to reestablish confidence and teamwork.

Now on the South American trip, Lagarde uses the world stage to bring attention to another matter concerning women.

Do you feel that you are in a position right now to bring about some change in the work place?

LAGARDE: Well, look, I'm the managing director of the International Monetary Fund. And not only do people in my organization listen to what I

say, but our voice is listened to by policymakers.

So when we produce empirical research and analysis that point to the strong contribution of women to the economy, of course people listen.

(END VIDEOTAPE)

LU STOUT: Christine Lagarde there.

And that is News Stream. I'm Kristie Lu Stout. But don't go anywhere, World Sport with Amanda Davies is up next.

END