Ifill nafta turns 20. We look at the successes and failures of the landmark agreement that stirred up a firestorm over free trade. Those are just some of the stories were covering on tonights pbs newshour. Major funding for the pbs newshour has been provided by ive been around long enough to recognize the people who are out there owning it. The ones getting involved, staying engaged. They are not afraid to question the path theyre on. Because the one question they never want to ask is, how did i end up here . I started schwab with those people. People who want to take ownership of their investments, like they do in every other aspect of their lives. And by the alfred p. Sloan foundation. Supporting science, technology, and improved Economic Performance and Financial Literacy in the 21st century. And with the ongoing support of these institutions and foundations. And. This program was made possible by the corporation for public broadcasting. And by contributions to your pbs station from viewers like you. Thank you. Woodruff in ukraines capital city, the standoff between police and protesters exploded into mayhem. A doctor working with the protesters reported at least 70 people dead and 500 wounded in kiev. We have a report from james mates of independent Television News. A warning, some of the images may be disturbing. Reporter no one wants to call whats happening in central kiev a war. But its beginning to look very like one. As riot police began to redeploy around the citys Central Square early this morning, protesters moved forward to fill the empty space. And from that moment all hell broke loose. For a while it was hand to hand fighting. Then headlong retreat. And then the normal vocabulary of riot control or violent protest became redundant. There was suddenly no restraint. They were shooting and shooting to kill. This extraordinary footage is of protesters coming under sustained and highly accurate sniper fire. Makeshift shields were beyond useless against live rounds, as one by one they were picked off. Pictures shot from the other side show police with high powered rifles methodically taking aim and shooting at targets along the street. Victims were dragged away some clearly terribly wounded. Its impossible to know how badly. There is no evidence from these pictures that any of those shot were armed. At one end of Independence Square we found a priest giving the last rites to rows of victims, all killed in the previous hour. There were ten of them. We obviously cant show you the pictures, but i saw for myself most had been shot in the head or neck. At the opposite end of the square, the reception area of the Hotel Ukraine had been transformed into a makeshift Field Hospital and temporary morgue. Here another 11 bodies were laid out under sheets. The doctors told us of the scene that had confronted them this morning. What sort of wounds were they directly to neck, heart and lungs and eyes. Reporter so youre sure these were sniper im sure that these snipers are very professional because they dont give chance for us to save life for these 13 people who are laying here. Reporter in the course of the mornings fighting, at least 12 riot police have been surrounded and captured by protesters in the square, then given safe passage through the crowd as a priest led them away. There are, though, conflicting reports as to whether theyre still being held hostage tonight. The site of so many of their friends being shot in cold blood has only stiffened the determination of the men behind the barricades, tired and dirty after days of fighting. This is the new front line that just a few hours ago was held by police. Theyve thrown this up just this morning. The key point about it is if the police attack, they torch it. Tires, wooden pallets, itll all make an enormous burning barricade. There are talks going on but both sides in this battle now have the look of people preparing to fight to the finish. Woodruff in washington, the white house said president obama discussed the situation with german chancellor Angela Merkel by telephone. Spokesman josh earnest said the president has not made a decision yet about new sanctions against ukraine, but is not considering military action. Making a decision about sanctions is cant just be a kneejerk reaction. That its important for us to consider the range of consequences that could ensue from applying some sanctions. So but again, were there is a sense of urgency that is being felt because of the terrible violence that we saw overnight. Woodruff later, Vice President biden spoke by phone with ukrainian president yanukovich, in the latest of a series of conversations theyve had this week. The European Union, for its part, agreed to impose sanctions on ukraines government at an emergency meeting in brussels. Well focus on the diplomatic efforts right after the news summary. Iran and six world powers including the u. S. Wrapped up their opening round of Nuclear Talks today in vienna. Both sides said theyre hoping to reach a final agreement that sets limits on Irans Nuclear program. They agreed to hold further negotiations beginning march 17th. The European UnionsForeign Policy chief Catherine Ashton and irans foreign minister Mohammad Javad zarif sounded optimistic. We have had three very productive days during which we have identified all of the issues we need to address in reaching a comprehensive and final agreement. There is a lot to do. It wont be easy, but we have made a good start. translated the atmosphere of the talks was very serious, but generally all the parties who were present at the talks agreed that it was a little more positive than expected. Woodruff in a related development, the u. N. s Nuclear Agency reported irans stockpile of highergrade enriched uranium has dropped substantially under an initial agreement reached last year. A select few north and south korean families were reunited today at a north korean resort after six decades apart. Brothers, sisters, spouses and other relatives embraced and cried after years with no contact. They traded photos of relatives who couldnt attend or had died. Many are now in their 80s and 90s, and this could be their last chance to see each other. These were the first such reunions in three years. In london, the former editor of the now defunct news of the world was acquitted today on one charge in a phone hacking trial. But, Rebekah Brooks took the stand to defend herself against four other charges. She denied knowing her staffers eavesdropped on voicemails of celebrities, politicians and crime victims. At the Winter Olympics in russia, a ukrainian alpine skier pulled out of her final event, the slalom, in support of the protests in her homeland. Bogdana matsotska said she wanted to return home immediately to join the crowds in kiev. translated my friends are there at the maidan, people i know, Close Friends of mine. To go on the start line when people are dying and when the authorities broke the main rule of the olympic competition, which is peace, i simply cannot do it. Woodruff as for the days competition, a spoiler alert tune out for a moment, if you dont want to know results just yet. In womens hockey, canada beat the u. S. Three to two in overtime to win its 4th consecutive olympic gold, russian figure skater Adelina Sotnikova claimed gold in front of the home crowd and american Maddie Bowman won the womens free ski halfpipe. A report out today challenges the u. S. Militarys efforts to prevent psychological problems in its ranks. The institutes of medicine an arm of the National Academy of sciences concludes theres no proof that the efforts actually work. The report says, quote it also finds that programs are flu season is hitting young and middleaged adults har hard harder than usual, the cdc said those 18 to 64 account for twothirds of all cases, twice the norm. They also make up more than 60 of flurelated deaths. It may be due partly to a surge in swine flu which tends to affect that age group the most. News surveys a pair of new surveys out today raised concerns about the global economy. Chinese manufacturing declined for a second straight month, while European Industrial activity remained slow. Meanwhile, stocks rallied on wall street with word that u. S. Manufacturing is growing at its fastest pace in nearly four years. The Dow Jones Industrial average gained 92 points to close at 16,133. The nasdaq rose more than 29 points to close at 4,267. Still to come on the newshour ukraine protests see their deadliest day, facebook shells out billions for a messaging app, aljazeera journalists go on trial in egypt, a new form of discipline to improve high school life. Plus, the successes and failures of nafta as the trade pact turns 20. Ifill in ukraine, as the battle between Government Forces and protesters became bloodier and deadlier, diplomats labored behind the scenes to find a way to end the violence. Lindsey hilsum of independent Television News reports. Reporter they couldnt even get through the streets. Fighting prevented European UnionForeign Ministers from reaching the president ial palace in kiev this morning. They made it by the afternoon and are reported to be preparing for more talks overnight. President yanukovich reportedly left the meeting at one point to call president putin, but there was no deal. The ministers from france, germany and poland left and diplomacy moved to brussels. E. U. Foreign ministers decided to sanction key members of the ukrainian government, whom they regard as responsible for the violence. We decided as a matter of urgency we need to look at targeted sanctions. Weve agreed to suspend export licenses for equipment for internal repression and weve asked the relevant working bodies of the council to make the necessary preparations immediately. Reporter the Russian Foreign minister visiting baghdad was not impressed. translated the opposition cannot or does not want to distance itself from extremist groups. Our western partners and everyone in europe and the u. S. Have thrown the blame on the government of ukraine, and they do not condemn, as they should, the actions of the extremists. We are very troubled by all of that because the double standards are obvious. Reporter ukraine is pulled between europe to the west and russia to the east. It became independent in 1991 after the collapse of the soviet union. A quarter of its 45 million population are russian speakers, living mainly in the south and east. The majority, who speak ukrainian as a first language dominate the west. Proeurope activists in ternopil, lutsk and Ivano Frankivsk have seized control of Regional Councils and lviv has declared independence. Western ukrainians tend to be catholic, while easterners are mainly orthodox. But so far, this is a fight between the state and protesters, not between divided ukrainians. Outside intervention though may fan the flames, as ukraine becomes the victim of renewed hostility between russia and the west. Ifill the world is watching ukraine. But what do they see, what can they do and whats at stake . For more on that, were joined by William Taylor, a former u. S. Ambassador to ukraine. Hes now a Vice President at the u. S. Institute of peace. And Matthew Rojansky, director of the kennan institute, which focuses on russia and ukraine at the Woodrow WilsonInternational Center for scholars. Mr. Ambassador, United States, germany, sweden, france, poland, all of these countries are now engaged in conversations about what to do in ukraine. Why is ukraine central to their interests . Ukraine is at the heart of europe, so the europeans that you mentioned are very interested to see stability. They are interested to see a market. That is why the discussions between the European Union and the ukrainian on a freetrade agreement have been so important. And thats fairly close. So the Economic Issues are key but the social issues are also important. Ukrainians would like people to recognize that a, theyre sovereign. That b, theyre european. They are at the heart of europe. They know that theyre on the borders between European Union and the russians, as your map shows. So that discussion is an important one for the ukrainians in particular. But the europeans and the russians have things at stakement we have ing thises at stake. We would like to see the ukrainians make their own decisions. We without like to see a sovereign ukraine that is run by a democratic government, macking decisions that affect ukraine. Ifill but what if a sovereign ukraine there are so many russian speakers, so many of the country is still allied with russia. What if a sovereign ukraine chose russia . Well, i think one of the fundamental problems within ukraine now is not just that the country is divided between an east which prefers russia, speaks russia and a west which prefers ukraine or europe, but that the conversation as ambassador taylor mentioned isnt really about geopolitics any more. Its about decency, its about whether people have a right to protest, to speak out about what they want in the first place. Whether the government can simply steal from them with impunity which it has been dporing many years now. And its not about individual political leaders. You know, its not about getting out of prison as it was maybe a year or two years ago, this is about people dying needlessly in the streets for simply exercising basic rights and freedoms. The problem with that scenario even cutting a goo political deal, imagine russia, unit states and europe sit around a table and come tie kploms t doesnt necessarily solve the crisis in the streets swrechlt reached a deadend. Ifill last night we heard there was a truce and there was not a truce. Do we know if it was ever real. It was proposed and agreed on both sides and might have resulted in some discussions. That actually is cause for some hope that when the leaders get together, they can come to an agreement and make some plans to sit down and have a discussion about how to resolve this. Todays violence makes that much more difficult. I would say not impossible, but much more difficult. Ifill why did this escalate so fast, why did it seem, a week two, maybe two weeks ago as if things had been resolved. And then it stirred up again. And it seemed like they were on the brink of something and now were approaching a hundred deaths . I think you have at least two problems. One of them is the spoiler effect. You know, Sergei Lavrov the Russian Foreign minister mentioned the extremists that the russians refuse to condemn there are absolutely people in the crowds who from the beginning have been prepared to use shocking violence just as an almost comical if it werent so tragic example today, some forces actually pulled the bodyguards of the european Foreign Ministers who were visiting out of their cars and roughed them up. So people who are ready to go on violence are on both sides. I think the secretary problem is violence begets violence. And once you had casualties, again, the protests ceased to be about joining with the European Union, they ceased to be about geopolitics, even about domestic politics. Theyre about anger about what has been done to innocent people. And thats something that is very difficult to deescalate. So what are the options. They say that the United States had some leverage, russia had some leverage. And yanukovych is holding his ground. What are his options here . His options are to back down, difficult for him to do. Another option is to declare a state of emergency and use a larger force, the military force, which is not yet done. If he were there is fear that that is. There is fear. And we ought to be making it very clear that that is such a bad idea, that its such a terrible thing for ukraine. And for the rest of the world, for that matter, that we will take strong measures. I heard today, however, that our secretary of defense has been trying to call and isnt getting the phone calls returned, how do we make it clear . They understand this. They understand exactly what the consequences would be, in terms of financial sanctions and the europeans have done the right thing of moving forward. In terms it of travel bans, most of all of the senior people in the government have assets in europe, mainly in europe. They have their children in european schools. They value those things. These sanctions, i think, are something that we ought to push with the europeans. Matthew, what do you think about the prospect of sanctions . Is it the right time or is it too little too late. Well, its already passed in the sense that the United States has imposed a visa ban and other kinds of, i believe, financial sanctions are under way. Europe is well under way as well. My concern here is were stuck between a rock and a hard place. On the one hand we are trying to impose sanctions on people who more or less feel that their lives are at stake. Their political survival. Ukraine is not a country where you leave political office, you give up wealth and power and youre fine. So if these peoples backs are against the wall, telling them you cant vacation in floor ga, the south of france, were going to freeze your assets, it just may not be enough it may be a fe