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The Mafia -

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different godfathers. They were two very

Separated by 4,000 miles of ocean. John Gotti was "The Teflon Don". adored public attention, A New York mobster who and defied lawmen to get him.

from rural Sicily, Toto Riina was a peasant a boss who operated in the shadows. In the late '80s and early '90s, different approaches it required two very to bring them to justice. crime fighters were unflagging In the United States,

in their pursuit of Gotti. by the people of Palermo In Sicily, it would take a revolution to put Riina behind bars. THEME MUSIC

and reckless hoodlum John Gotti was a violent from his earliest days.

was drinking in a bar A young gangster called Henry Hill the teenage Gotti. when he first came across without saying one word to anybody, All of a sudden, John comes in, and starts whacking a guy comes over to the card table or a fucking pipe or something. with a bat or...maybe with a bat, guy in the head to death. Just beating this fucking He almost killed the guy.

I don't know. He might have killed the guy, they might have threw him The guy might have died, I don't know. in the fucking trunk that night, rule of the mob - Gotti had broken an unwritten when there were no witnesses around. violence should only be used apologises to me. (Laughs) Then he walks over, all over the place. Fucking blood flying I had ever seen him. That was the first time

you know, topcoat, leather topcoat. He had a fucking long black... of a, you know... He just looked the fucking part ..of a fucking gangster. It was clear Gotti feared no-one. as a man destined for the top. To Henry Hill it marked Gotti

He had his own crew. He was a man on the rise. to be somebody. You knew he was going He had that presence. You just knew it. of Gotti's rise. But one man stood in the way Paul Castellano. of the Gambino crime family, He was the head the Mafia families in the US. the most powerful of all Castellano was an old-style hood, behind a veneer of respectability. a Mafioso who disguised his crimes

He could mingle with lawyers, Paul wore two hats. and developers, doctors, real-estate investors talk their language. and he could sit there Then he wore his Gambino family hat,

got to get killed, and discuss why this guy's and say, "OK, he's got to go." Castellano to become boss. Gotti would have to eliminate who wanted him out of the way. But Gotti was not the only one declared war on organised crime. In 1983, President Ronald Reagan ruling body, known as the Commission. The target was the Mafia's On it sat Paul Castellano. anti-Mafia RICO legislation, Under America's tough Castellano and the other bosses crime fighters could prosecute for running a criminal enterprise - the Commission was meeting. if they could prove the only proof the FBI had The Commission was so secret, dated from 1957. of a meeting taking place at FBI headquarters in New York, Then, one morning in May 1984, a call from a mole inside the Mafia. agent Joe O'Brien received to be what is known as He informed me that there was going in a couple of hours. a Mafia Commission meeting to be honest with you. I didn't believe him, much unheard of, Because this was pretty these guys cannot afford to meet. incriminating to them. That can be very a photograph of this meeting, If the FBI could get it would help destroy the Commission. Andy Kurins, O'Brien and a fellow agent, staked out this building, Staten Island, a small house on Camera Avenue, of a senior Mafia don. that belonged to a relative of an unmarked van The agents hid in the back

a few hundred yards down the road. right about where the white car is. The van was right back here, that's about where we were parked. Right in front of the 54 there, there were no cars at that time, And we had a nice straight shot, down the street to 34 Camera. we had a straight shot till about 4:30, So we sat there for three hours, crime family by crime family. and then they started coming out,

The top men in the Gambino, the Lucchese, families all emerged. the Colombo and the Genovese guest of honour, if you will, Then finally our long-awaited Paul Castellano came out. Castellano was the boss of bosses. It was like the king strutting out. You could almost envision a carpeted area. It was a real show of how the mob operates, and mob protocol. It was very exciting. I don't know how Andy managed to keep the camera as still as he did. He used this shoulder, right here. As a tripod. And I just didn't breathe, for the longest period of time. Castellano wasn't in any big rush. Took a couple of puffs on the cigar and got in the car and drove off. The photographs were dynamite. The FBI knew that such striking visual evidence was just the thing to put in front of a jury.

In February, 1985, the FBI seized all five members of the Commission.

Agents O'Brien and Kurins arrested Castellano, and drove him to FBI headquarters in Manhattan. RADIO: Federal authorities and New York City and State law enforcement officials today announced one of the most important indictments of Mafia bosses in this nation's history. In the car, on the way to FBI headquarters,

Castellano heard a radio news bulletin about the arrests. ..racketeering and extortion. The charges carry prison sentences

of up to 20 years. From New York, we have Mike Shipton. It was the beginning of the end of Castellano's reign. RADIO: City authorities made their move late last night. Among those now facing Federal racketeering and extortion charges are Paul Castellano, head of the Gambino family. The key to the investigation was an electronic bug. He turned to Joe, I remember, and said, "Is that true?

"Is that true you listened to my private conversations?" Prosecutors say the recordings are of superb quality. You could almost hear him groan. The agents thought Castellano was squirming because they had taped

his criminal conversations. But Castellano realised they had also learnt

about his secret affair with his young Columbian maid. This was very embarrassing to him.

It was a little embarrassing to us, too, for that matter. He's almost like a little boy, now, confessing this... ..something that he did was bad. He's not talking about, "It was bad that I murdered people, or had, on my authority, "people were murdered." It's, "I'm embarrassed because I had this relationship

"with this young woman who was my maid, "right under my wife's nose." This was a revelation a Mafia don could not afford. He'd broken one of the Mafia's most sacred rules. It was OK to maim and murder, but not to publicly dishonour your wife. Mr Castellano? Mr Castellano!

What do you have to say about... Can you describe the indictment... Castellano waited trial, at which the photos

would be key evidence.

A power vacuum had been created at the heart of the Gambino family. The situation was ripe for war.

If the New York mob wanted to know what a Mafia war was like, they needed to look no further than Sicily. Here the Mafia's boss was Toto Riina, an elusive psychopathic killer from the town of Corleone. Corleone was a Mafia stronghold, set high in the mountains

of central Sicily. It was the place that gave its name to Marlon Brando's character in the film, 'The Godfather'. Riina's cruelty earned him the name "The Beast". Corleone had an unenviable reputation,

as a place where only the toughest Mafiosi were born and bred, as one local anti-Mafia fighter remembers, (Speaks Italians) TRANSLATION: I once met a Corleone Mafia person, and he looked me straight in the eye and said,

"Listen, to be a real man you need to have spent "a few years in jail." This is the philosophy of the Corleone Mafia. For them, going to jail is like a baptism. A Mafia member who hasn't been to jail isn't a real Mafioso. Riina's crime family had seized control of the Mafia in a vicious war. In Palermo, in the early '80s, the streets were awash with the blood of Riina's victims.

During one six-month period, a body was found in the city every three days. Palermo's mayor was Leoluca Orlando, elected to office promising to end such crimes. Even 20 years later, his courageous stand means he must have an armed guard 24 hours a day. Palermo was a city just living in silence and in dark. The way the citizens, to avoid to be involved in these killings was to deny that the Mafia does exist. Just to say, "We don't see, we don't speak, we don't hear. "It's not our problem, they kill each other. "There's no risk for us. "If we don't speak about the Mafia we will never be killed." The man leading the hunt for Riina was an investigating magistrate called Judge Giovanni Falcone. He had grown up in a rough area of Palermo, where some of his schoolboy friends later became Mafiosi. Unlike them, he had chosen to fight for the law, rather than against it. From his headquarters in Palermo's Palace of Justice, Falcone had been battling the Mafia for over a decade.

In 1987, he had enjoyed his greatest moment. In the Maxi Trial, over 300 Mafiosi had been sent to prison, their sentences totalling almost 3,000 years. It was the most stunning blow the Sicilian Mafia had ever received. SHOUTING AND COMMOTION But Mafia boss Toto Riina had escaped the round-up. He remained free, running his criminal empire from an unknown hiding place. Falcone faced another danger, this one closer to home. He had few friends at the Palace of Justice. The people of Palermo stood on the sidelines, waiting to see who would come out on top. Falcone, or the Mafia? Such isolation was dangerous. Other anti-Mafia fighters had met their deaths at the hands of Riina. Falcone could not be too careful.

When he married his fiancee, Francesca, Falcone had Mayor Orlando himself conduct the ceremony. It was held in total secrecy, late on a Saturday evening,

to the astonishment of Orlando's secretary. Suddenly my secretary came and said, "Judge Falcone is arriving!" And I said, "Yes, let's start the wedding." And they got married. There was no-one. And they went away without photo, without friends, without members of family.

It was one of the costs that Giovanni and Francesca had to pay to the fight against the Mafia. A few years earlier, Mafia defector Tomasso Buscetta warned Falcone that Riina would stop at nothing to kill him.

TRANSLATION: Never forget, when you open an account with the Mafia, it will only be settled when you die. The seriousness of the threat was soon revealed.

Falcone rented a vacation apartment on the beach, half an hour's drive from Palermo. When he went there, it seemed that most of Palermo knew about it. (Speaks Italian)

TRANSLATION: When Falcone was on the move, it was like a wedding party.

There were lots of cars, even a helicopter in the sky above.

So everyone knew that Falcone was at the beach house. Yet the ring of steel that protected Falcone made little difference to Riina. One afternoon in June 1989, Falcone relaxed by the beach. An inquisitive security guard noticed a sports bag by the house, seemingly forgotten in the rocks by the water's edge. When he peered inside the bag, he noticed electric wires connected to 58 sticks of plastic explosive. (Speaks Italian) The bag was primed to explode if picked up.

The bomb did not go off. Falcone had cheated death. Soon after the assassination attempt, Falcone spoke to one of his closest friends in the fight against the Mafia.

He made a chilling prediction. (Speaks Italian)

TRANSLATION: When we were talking afterwards, he told me, "My life's mapped out. "It's my destiny to be killed by the Mafia some day. "The only thing I don't know is when." With Riina at large, Falcone was running out of time. Back in New York, the clock was also ticking for the American godfather, Paul Castellano. Castellano waited for his trial on racketeering charges. He rarely ventured from his home, this luxurious mansion in the most exclusive area of Staten Island. Enemies and friends alike called it "the White House", and Castellano lived like a president. That meant he lost touch with feelings on the street. Discontent that would be exploited by his rival, John Gotti. There's a lot of discontent with Castellano, where they thought he was too involved in his legal trials, he wasn't running the family. It had become a family of haves and have-nots, Castellano was making all the money, Guys like Gotti were out there, starving. So there was a lot of dissension in the family. We knew there was meetings going on, and there was a lot of discontent. In fact, Gotti posed as a have-not to win support for his bid to become boss. In reality, Gotti was making a fortune dealing heroin, making him a hero to his supporters. He had his own crew, and we used to do a lot of things together. If you have a lot of money you can do a lot of things with it. And he had it. You know what I mean? And he let everybody else in his family eat off the same dish, as they say. Be in the drug business. To do just about anything they wanted. In the city.

The law was onto Gotti's crew for drug dealing. That brought more heat on Castellano. So he planned to break up Gotti's crew. Gotti knew he had to act. The stage was set for a showdown. On 16 December, 1985, Castellano headed into Manhattan for a meeting with Gotti. They were to meet here, at Castellano's favourite steakhouse. Sparks, in midtown Manhattan. Outside the restaurant, Castellano and his driver were shot dead. Such a daring, public murder shocked New Yorkers. It made the new Gambino boss a celebrity overnight. At the time, Gotti was facing trial on a charge of racketeering. Until the murder, few outside the world of law enforcement had even heard of John Gotti. We went from having what was really, not sleepy, but routine organised crime case... ..to the case, the case of the decade. We had huge throngs of reporters outside the courthouse, in the courtroom. We had a big fish on the line.

At his trial, Gotti was defended

by flamboyant mob lawyer, Bruce Cutler. For many years, Cutler has continued to act as Gotti's apologist. He had a remarkable insight into others. Like a sense, almost a sixth sense, if you will, to size people up. Gotti could certainly size up a jury. In March 1987, the trial reached it's conclusion. Gotti was acquitted of racketeering. But unknown to law officers, a juror had been bribed by one of Gotti's men. Gotti was tried in two other cases, both for assault, both defended by Bruce Cutler. How say you with respect to the defendant, John Gotti, guilty or not guilty? We find him not guilty. CHEERING Both times the Gambino boss got off. Bribery and intimidation of witnesses saw to that. The nickname "The Teflon Don" was born. Gotti was different to almost any other godfather. He made little secret he was a Mafia don, and enjoyed that everyone knew he'd risen from Brooklyn poverty to become boss of bosses. He was born dirt poor. Was on the streets since he's 12. Was on the cover of 'Time' magazine in his 40s. And...he took on the system.

CHEERING In the opinion of his former attorney, Gotti was a latter-day Robin Hood, standing up to those in power. Jewish people, Irish people, working people, union people, construction workers, policemen. My father was a detective. Some of our strongest supporters that used to cheer for us were local police. Not because they're allowed to. But it was the alphabetised government thugs we fought. The FBI. Internal Revenue. INS. CIA. Those faceless, robotic government thugs that come at you, and can destroy your life. The murderous reality of Gotti's brutal reign was very different. Gotti's love of public adoration would be exploited by the FBI, and proved to be the Teflon Don's undoing.

In Sicily, crime fighters had a different problem to their colleagues in the United States. American mob boss John Gotti loved the limelight. But the head of the Sicilian Mafia, Toto Riina, stayed out of sight.

Prosecutor Giovanni Falcone was determined to hunt him down. Falcone needed a way of connecting Mafia boss Riina to the crimes carried out in his name by his army of killers.

The answer lay in America. Richard Martin was a leading official in the US Department of Justice. He and Falcone had worked together for years. Their biggest success, breaking the heroin-smuggling link between Sicily and the United States, known as "the pizza connection". Falcone relished his trips to the US. The life that he led in Sicily was almost the life of a prisoner. He went from a bullet-proof car to a protected office. Instead, when he came to New York, he could go shopping, he could go to restaurants, he could come to our offices, we could go to our homes and meet our families together, and so for him, New York was like freedom. Falcone's visits to New York were for more than pleasure. He had been greatly impressed at the state's tough anti-Mafia laws, laws that allowed the US government to target Mafia boss Paul Castellano, and to bust the Commission. I think it also liberated his thinking. And it allowed him to see beyond his own realm, coming here.

So I think he not only enjoyed it, but I think it was very good for his vision of the way that he was going to attack the Mafia. And the way in which he would work with Italian law enforcement.

In 1991, a new Justice Minister took office in Rome, determined to finally crush the Mafia. He offered Falcone a job at the ministry,

as overlord of the anti-Mafia campaign throughout Italy. Falcone jumped at the chance of leaving Palermo and putting into practice the lessons he had learned in the United States.

His ideas were revolutionary. An Italian equivalent of the FBI was to be formed. Across Italy, the fight against organised crime would be centralised under Falcone's control. Riina, the Beast from Corleone, felt threatened.

A few years before, he had failed to kill Falcone at his beach house. Now Riina would try again. On 23 May 1992, Falcone and his wife Francesca returned to Palermo for the weekend. A few miles from the airport, several of Riina's men had placed a half-ton bomb in a drainpipe under the highway that ran from the airport to the city. The men then hid in a building above the road, armed with a remote-control detonator. BOOM! AMBULANCE SIREN A massive explosion ripped open the highway. The explosion was so enormous it registered on local earthquake monitors.

Giovanni's sister, Maria Falcone, was at home when she heard the news of the explosion. (Speaks Italian) TRANSLATION: When my husband told me what had happened, I rushed out of the room. I phoned the police. They told me Giovanni had been taken to hospital. When I got there, Francesca's brother told me,

"Giovanni's dead."

(Speaks Italian) TRANSLATION: This was the saddest moment ever. Not only for me as a sister, but also as an Italian citizen.

Because we felt that in losing Giovanni, our greatest chance of beating the Mafia had gone. Falcone was not only a colleague - I was proud to think of him as a colleague - but a friend. I was enormously saddened. And it was as if part of what we all worked for had been lost. Riina reputedly threw a party, toasting Falcone's demise in champagne. Along with Falcone, his wife Francesca, and three body guards were also killed. Thousands gathered at the Church of San Domenico in Palermo for their funeral, waiting patiently for hours in the rain. The funeral was broadcast live on national TV. Across Italy, all regular television programs were suspended. Parliament declared a day of mourning. TRANSLATION: When they asked me what I did when I heard the news, I said, "I cried." Someone said, "You're Judge Ferraro, what do you mean, 'you cried'?" I replied, "Yes, I cried. "And I'm not in the slightest bit ashamed of it." Italy was shocked and angered. It didn't deter Toto Riina. Anyone who stood in his way would meet a similar fate. In New York, the net was closing in on the American godfather, John Gotti. This clothing store in Manhattan's little Italy was once the Ravenite Social Club,

the nerve centre of the Gambino crime family operation. Gotti insisted that his crime family visit the Ravenite, to pay public homage to him. The FBI had placed a surveillance team in a block near the Ravenite. This is some of the actual footage shot by the FBI.

Gotti revelled in his public persona as Mafia godfather. He made no attempt to hide the fact that he was meeting with his criminal gang. The rest of the family was required to come down there

as a command performance, to meet with John, to discuss business, kiss his rear end, give him money, what have you. So during the course of a week, you might have all 20 caps in the family down there, on different nights, plus 80 to 90 to 100 soldiers.

All standing out there in broad daylight. And for us it was a goldmine, just seeing and identifying the entire Gambino family in the course of a week, all in the one place. Pictures, though, were not enough. To gain a conviction, the FBI also needed to hear

Gotti talking about his crimes. They had bugged the Ravenite. But the bugs had so far failed to pick up much. Then they had a break. An informant told them Gotti always held his most important meetings

in an apartment upstairs, owned by the elderly widow of a Gambino member. When the old lady went on vacation, FBI agents broke in and placed a bug in the apartment. About a few days later we heard the back door of the Social Club open up, and heard them walking up the stairs, and sure enough we hear the door of apartment number 10 open. And they all sit down, and they start talking. And after a few minutes it became obvious that they weren't concerned about microphones because they had a radio on, but they'd turned it down, 'cause it was too noisy. They all talked loud because, we found out later, John Gotti's deaf in one ear. So the tapes are all loud and clear and tremendous quality. The secret recording reveal the true face of a Mafia godfather. Very different to the one Gotti showed his adoring public. This is John. When John's upset he starts talking loud and clear, and he forgets about things he should not talk about, like past murders. Gotti was arrested. In January 1992 he was sent for trial, facing charges of multiple murder and racketeering.

It would be his fourth trial in six years. Yet again, New York was riveted by John Gotti.

Celebrities flocked to the trial. In the gallery it was almost like a circus-type atmosphere. Mickey Rourke came in one day. Anthony Quinn came in to watch the trial. They sent in a boxer, Renaldo Snipes,

who glowered at the jury and within half an hour was kicked out. This is John. Gotti was his normal cocky self, full of bravado, but when you played those tapes you watched his face, and you knew that's the last thing he wanted to hear, is his big mouth.

Gotti had damned himself. But the tapes would have another, unexpected, impact. Also arrested with Gotti was his loyal right-hand man,

"Sammy The Bull" Gravano.

Dominick Montiglio went to school with Gravano. Later, both men would become mobsters with the Gambino crime family. Sammy was always a tough kid. He and I went to school together from when we were, like, in kindergarten. I mean, he killed his brother-in-law. Louie, which was like his childhood friend, Louie Milito. They grew up together, and hung out together,

they stole together, they did all of that. He killed Louie. You couldn't trust Sammy. Gravano had become disillusioned with Gotti. To Gravano, a real godfather shouldn't be courting publicity. He should be operating in the shadows, like Paul Castellano had done. But Gotti had no respect for anyone, including his underboss. Something that the FBI exploited. At a pre-trial hearing, Agent Bruce Mau played Gotti and Gravano a tape. On it, Gotti was extremely critical of his underboss.

And so you've got Gravano and Gotti sitting side by side, at the defence table, and we start playing that tape, and Sammy turns red, he's starting to explode. He's just ready to burst. John Gotti, for the first time, is embarrassed. He's turning white, he just wants to duck under the table. He's so embarrassed, 'cause he knows he got caught badmouthing his consigliere, his underboss, his right-hand man. Gravano would be the final nail in Gotti's coffin. Bruce calls me one day at my desk, he says to me,

"Are you sitting down?" I said, "Yes, I'm sitting down." He said, "Sammy wants to cooperate."

Sammy was brought in the room, he walked over, shook my hand, and said, "I want to go from our government, to your government." Never before had so senior a figure betrayed the American mob. Gravano's testimony landed the killer blow in court. He revealed how he and Gotti had planned the murder

of their one-time boss, Paul Castellano. Then watched from a car as Castellano was gunned down. Gravano was a fantastic witness, and John Gotti acted like someone who knew he was going to be convicted and he was really worried about it. He was ornery, snapping at me. Snapping at his lawyers. It was...I enjoyed watching it. In April 1992, Gotti was found guilty on 13 charges, including murder and racketeering. The judge sent the godfather to one of the toughest jails in America, Marion, Illinois. And the sentence was steep. Life, without the possibility of parole. Despite the evidence of the tapes and Gravano's testimony, Gotti's attorney in his first re-trial still protests Gotti's innocence. If you're asking me do I agree with the label, that he was boss of some Gambino group, I say no! To you. I've said no all my life. He's said no.

I don't say he was an altar boy or a saint. He was one tough cookie. But he said he was not part of any mob. Gotti was gone. But in Sicily, Mafia boss Toto Riina was about to deliver another shocking outrage. In the United States, the mob boss John Gotti was facing a life sentence in prison. But in Sicily, the Italian government seemed powerless. Mafia godfather Toto Riina killed at will. Anti-Mafia prosecutor Giovanni Falcone had been murdered. Palermo waited anxiously for Riina's next move. Falcone's mantle had fallen to another magistrate, Paolo Borsellino. Borsellino and Falcone had grown up together, and had devoted their adult lives to fighting organised crime. On Sunday afternoon, July 19 1992, two months after the murder of Falcone, Borsellino visited his elderly mother in this apartment block, as he did every weekend. A massive car bomb exploded, killing Borsellino and five of his bodyguards. This outrage was the final straw. It cause a revolution against the Mafia, led by the people of Palermo. After the killing of Paolo Borsellino, the reaction of people, the population of Palermo, was enormous. The women, the children, the people reacted, just crying, "Bastard, no more, enough is enough."

Enough was enough. Thousands poured onto the streets of Palermo, in a wave of anger unprecedented in Sicilian history. Everyone sensed the Mafia's next target was mayor Leoluca Orlando, elected to office pledging to rid Palermo of the Mafia. When he appeared in public, women and children threw a protective cordon around him, daring the Mafia to kill them to get to the Mayor. They send a clear message. that I was not alone. The message was that the Mafia can kill a man, the Mafia can kill 10 men, but the Mafia cannot kill thousands and thousands of women and children. It was the beginning of the end. People power had beaten back the Mafia. The government flooded Sicily with thousands of troops,

determined to crack down hard on the Mafia.

In January 1993, Italian police scooped the biggest prize of all.

Following a tip off, Toto Riina was finally arrested. (Speaks Italian) TRANSLATION: Salavatore Riina was captured in Palermo by the carabinieri this morning. Toto Riina is ours. Astonishingly, Riina had been living in the middle of Palermo,

undetected by the police for over 20 years. When Riina was paraded in public, Italians were shocked. This inoffensive peasant-like character

was responsible for the brutal slaying of Falcone and Borsellino, along with hundreds of others. At his trial, Riina painted himself as a poor old man who knew nothing about the Mafia. (Speaks Italian) This flimsy defence was rejected. Riina was sentenced to life imprisonment, to be served away from Sicily, in a jail on the Italian mainland.

On both sides of the Atlantic, the day of the godfather seemed over. John Gotti died of cancer in prison in 2002, 10 years into his life sentence. With Gotti's death, an era ended. By publicly flaunting the fact that he was boss of bosses, he ensured that law enforcement agencies would leave no stone unturned to finally smash the mob.

The future is pretty grim for the mob if the FBI, and other federal agencies keep the pressure on

to go after these guys. The biggest mistake we can make is declare that the war on the mob is over with, we've won, and go off and do other things. These people are very resilient, in five years they could regroup, re-organise. They'll never be as effective as what they were 30 years ago, but they'll still be a viable criminal force. In the US, the mob are moving with the times.

They're involved in internet fraud, sex phone lines, and stock exchange scams. But they are no longer the power they were. Nor will the FBI let Russian, Chinese, or other criminals dominate their neighbourhoods in the way Italian gangsters once controlled their's. In Sicily, they are also keeping up the pressure. (Speaks Italian) Yet in these hills, even with Riina in prison, the Mafia is still there. Invisible, but deadly. Today there are new leaders. They are also from the Mafia stronghold of Corleone. They have turned their backs on the self-defeating tactics of Toto Riina. No longer do they assassinate public officials. Like the leaders of old, they prefer to pull the strings from the shadows. (Speaks Italian) TRANSLATION: I think we were all a bit deluded. Maybe we were just kidding ourselves that we could destroy the Mafia with just four moves on a chessboard. In the US, the mob is finally in retreat.

But in Sicily, it is rising from the ashes, adapting itself to the times,

changing tactics to ensure that its power remains as unshakable today as it ever was. Closed Captions by CSI *

This program is not subtitled

Tonight - China moves to

crush dissent in Tibet. We are

asking our Chinese Government

please stop the killings in

Tibet, and please go back to

China. And we need freedom,

and we need human right. With

dozens reported killed and mass arrests, Chinese security

forces have ordered all

demonstrators to give

themselves up by midnight or

face punishment. Whether

intentionally or

unintentionally some kind of cultural genocide is taking

place. CC

Good evening, welcome to

Lateline, I'm Tony Jones. Over

the weekend the Deputy PM and Education Minister Julia

Gillard began talking about a

new needs-based system of

funding for public schools.

She talked about the

philosophy, but not the detail.

So would the new system simply

redistribute existing funding

or will it require significant

new Federal funds? Tonight she

confirms the Federal Government will commit new funds to public

schools to make it work. Yes, Tony, we're talking about a

conversation with the States

and Territories in the lead-up

to the schools agreement at the

end of the year which would be

about additional resources to

help combat disadvantage in

education. But in keeping with

current fiscal rectitude, the

new money for needy schools

won't come online until next

year. That interview with

Julia Gillard is coming up.

And we'll also be speaking live

to the Foreign Affairs Minister

Stephen Smith about the crisis

in Tibet. First our other

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the how the wreck of 'HMAS

Sydney' finally found, but

plenty of questions remain

unanswered. Ashes to ashes,

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'Lateline Business' - Bear

Stearns's bailout, a rival

steps in as the subprime poison

spreads. The Tibetan Parliament in exile claims

hundreds of Tibetians have died

in clashes with China's police

in Lhasa. It's a claim the

Chinese Government rejects,

saying that only 13 people have

died in the unrest and their

deaths were caused by

demonstrators. Beijing has

also warned Tibetan protesters

to surrender by midnight in

just over six hours time or

face punishment. China correspondent Stephen McDonnell

reports. Doctors in Tibet's

rundown hospitals are tonight

dealing with an unknown number

of casualties following days of

rioting in the city of Lhasa

and elsewhere. After years of

pent-up anger against Chinese

rule, the destruction wrought

by Tibetan protesters has been

significant. Rioters may have

been given till midnight

tonight to hand themselves in,

but a door-to-door search is

already leading to arrests. As

the rebellion spread beyond the

official border of Tibet, these

mobile phone images show a

large protest in Gansu

Province. Police and military reinforcements have been

trucked in and this region is

now also closed off to the

outside world.

world. TRANSLATION: There is no

freedom or human rights and we

want that. The Chinese

Government is pressing us and a

lot of people were

arrested. With nightfall,

retribution has been swift.

Exiled Tibetians claim at least

80 protesters have been killed.

But the governor of Tibet says

Chinese security forces have

not even fired their weapons.

TRANSLATION: I can say with

all responsibility we did not

use lethal weapons, including

opening fire. I can tell you

these are just baseless

reports. TRANSLATION: We must under the strong leadership of

the party unite as one man with

united strength, full

enthusiasm, high morale and

solid work to achieve the full

victory of this battle in order

to make the people at ease and

make people satisfied. In the

Tibetan capital Communist Party

leaders have been hearing a

rev-up speech from the local

party secretary. Chinese

embassies throughout the world

have faced sometimes violent

demonstrations on their

doorstep. World leaders are

urging a peaceful

resolution. These most recent

developments in Tibet are

disturbing and from my point of

view I would call upon the

China authorities to exercise restraint. Because information

coming out of Tibet is so controlled, most Chinese people

in Tiananmen Square tonight

wouldn't even be aware that

there are allegation s that

Tibetan protesters have been

killed and behind me in the

Great Hall of the people the government leaders who know

what's going on are not about

to tell them. Exiled Tibetans

in Dharamsala are struggling to

confirm reports of violence

inside Tibet. No, China shot 32

people die. So you're saying

today there was a protest of

20,000 people, and 32 people

died? Yeah, 32. The Dalai Lama