Return to Transcripts main page

IDESK

Trump Faces Resistance As He Tries To Reset; 50 Security Experts Sound Alarm On Trump; Clinton Says Trump's Policies Will Launch New Recession; Putin And Erdogan Meet In Russia In Effort To Repair Strained Relations; Russian Athletes Booed At Olympic Games; Usain Bolt Aims For "Triple-Triple"; Delta Cancels 250 More Flights Tuesday; Putin Says Top Priority With Turkey Is Restarting Bilateral Relationship. Aired 10-11a ET

Aired August 9, 2016 - 10:00:00   ET

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


[10:00:20] ISA SOARES, CNN ANCHOR: Hello, and a very warm welcome to the International Desk, I'm Isa Soares.

We'll begin this hour at flash point in U.S. politics. Dozens of high- profile Republicans are streaming away from Donald Trump just as he's down in the polls, and scrambling to jump start his campaign.

Our Jason Carroll has the story.

(BEGIN VIDEO CLIP)

JASON CARROLL, CNN CORRESPONDENT: Another prominent Republican coming out this morning against Donald Trump. Maine Senator, Susan Collins, pending an

op-ed in "The Washington Post" explaining why she cannot vote for her party's nominee.

I've become increasingly dismayed by his constant stream of cruel comments and his inability to admit error or apologize. This as 50 Republican

National Security Officials warning in an open letter, that Trump is unqualified to be commander-in-chief. The experts who served in Republican

administrations from Nixon to George W. Bush labeling Trump as dangerous, reckless, and lacks the character, values, and experience to be president.

MATTHEW WAXMAN, FORMER U.S. DEPUTY ASSISTANT SECRETARY OF DEFENSE: Our system has produced a candidate who is fundamentally unfit for office.

CARROLL: Trump firing back at those who signed the letter, calling them part of the failed Washington elite who made the world such a dangerous

place.

DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: I want to jump start America. And it can be done. And it won't even be that hard.

CARROLL: The GOP nominee unveiling a new economic plan on Monday, hoping to reset his campaign after hitting a rough path since the convention.

TRUMP: She is the candidate of the past. Ours is the campaign of the future.

CARROLL: Trump is revising his tax plan now, calling for three tax brackets, with the highest rate being 33 percent for individuals and

capping the corporate tax rate at 15 percent. And in an effort to appeal to working class voters, he hopes to make childcare expenses deductible.

TRUMP: At the center of my plan is trade enforcement with China.

CARROLL: Trump once again called for renegotiating trade deals, like the transpacific partnership.

TRUMP: A vote for Hillary Clinton is a vote for TPP.

CARROLL: Wrongly claiming that Hillary Clinton supports it.

HILLARY CLINTON, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: He wants to basically just re-package, trickle down economics.

CARROLL: Clinton slamming Trump's plan, saying there is little in there for the middle class.

CLINTON: Economists left, right, in the middle, all say the same thing. That Trump's policies would throw us into a recession. The last thing we

need.

(END VIDEO CLIP)

SOARES: Jason Carroll reporting. Let's bring in CNN Politics Senior Correspondent Chris Moody, he joins us now from Washington with more and

Chris this is a wide and illusory of list of GOP's. Let's talk a bit about how scathing these comments were and how unprecedented this is.

CHRIS MOODY, CNN POLITICS SENIOR CORRESPONDENT: This is incredibly unprecedented, in the modern era of American politics. Look primaries, when

parties pick their candidates, usually get heated and there are people that are not happy in the initial aftermath. But very quickly, especially during

the conventions, the party gets together, they go behind the nominee, and they move toward the election.

Donald Trump had an opportunity to unite the Republican Party at the convention and in the immediate aftermath of it. It seemed as though there

were a lot of Republicans standing on the sidelines waiting for him to make that so-called pivot from being a primary candidate, focusing just on the

GOP base, to someone that can speak to Democrats, to Independents, people all over these 50 states in the country. But then, he attacked the -- a

Gold Star families, people whose children had died in American wars, and the number of other missteps, and the number of Republicans, including

those who signed the letter, and a growing number of lawmakers on Capitol Hill saying, I just can't do it.

And they're running away. In part, that's to save their own hides, to try to win their own elections in November. But it is something that Donald

Trump needs to try to bring together, but he's just not doing that in the time he'll need, especially with just about 90 days left until Election

Day.

SOARES: So Chris, what were they expecting in that case? I mean what they are hoping to see a new, more self-restrained Mr. Trump here?

MOODY: Throughout the whole primaries, Donald Trump said look, when the time comes, I'm going to be able to stay on message and focus on issues

that can appeal to a majority of Americans all over the country. And people said OK, well, let's see it.

And every turn, or just about every turn, he seems to get distracted, and the Democrats, including Hillary Clinton's campaign, are working very hard

to dangle shining things in front of him, to try to get him off message.

[10:05:05] We saw in his economic speech yesterday, in Detroit, Michigan, where he was reading from a telepromter, behaving himself. I believe there

was more than a dozen protesters, one by one, trying to interrupt him, getting him off message.

We also saw Elizabeth Warren, she's a senator from Massachusetts who's supporting Hillary Clinton, trying to bait him on social media to get him

to respond. Because they know that usually Donald Trump is the kind of person who can't resist himself and will respond and maybe go beyond the

line so to speak, and that is what the Hillary Clinton campaign wants him to do. And the Republican Party, the ones who are still supporting him, is

trying to say look, stay on message, and try to avoid the temptation.

SOARES: But we have heard from Mr. Trump, who basically said they are pretty much, these 50 Republicans are part of the status quo. So who's

paying attention to this? Voters saying that it's attention to this minutia, do you think?

MOODY: Well, taken in one single segment, it might seem like minutia, but think of it as one block in a house that's being built, or a walls being

built around Donald Trump to block him from the nomination.

The letter was a big hit, and it was timed intentionally remember, it came right after his on message, economic speech and then the media focus

changed from what Donald Trump campaign wanted to talk about, to what his opponents even within the Republican Party wanted to talk about.

And so we're seeing this real this trickle that Donald Trump really risked turning into a flood of opposition. People like this giving -- this gives

cover to other Republicans to not support him as well. I think we'll see more defections in the future.

SOARES: Chris Moody, there for us in Washington. Thanks very much Chris for your analysis.

MOODY: Thank you.

SOARES: And coming up later on the show, we'll speak with one of the 50 security experts who signed that letter. A former ambassador now,

denouncing his party's candidate for president, so do stay tuned for that.

I want to turn your attention now to Hillary Clinton, campaigning at battleground state of Florida, and now facing her own crisis. Parents of

two men who died in attacks on Benghazi have filed a law suit. It links the attacks to another Clinton controversy, a use of a private e-mail server as

secretary of state, state the suit that Clinton's reckless handling of confidential information led to their deaths.

Now, to a big meeting in Russia, the Russian and Turkish presidents sat down on today, in fact, just a couple of hours ago I should say.

Just weeks after the failed coup in Turkey for the first time since Turkey downed a Russian war plane last November, if you remember. Any minute now,

we are expecting the two leaders to hold a press conference about the discussion. You're looking at live pictures there of that room.

Matthew Chance is covering the summit for us -- the meeting for us in St. Petersburg. Also Arwa Damon is in Istanbul.

I want to start with Matthew first, and Matthew both countries we all know are struggling with pretty much flagging economies, I think I can say that.

So how much of this meeting is focused on business, or is it mostly to geopolitics?

MATTHEW CHANCE, CNN SENIOR INTERNATOIONAL CORRESPONDNT: Now I think it's, it's going to be -- the meeting itself is mainly going to be focused on

business. I think you're right. It was an economic motive that led these two countries to try and resolve their differences and of course, Turkey

has an economy which is suffering.

The Russian tourists have been banned effectively through charter flights, being suspended, and going to those Turkish resorts is a big hit for the

Turkish economy. And other economic sanctions as well that Russia placed on Turkey after it shot down one of its warplanes in the area of the Syrian

Turkish border last November.

Russia also has a stagnant economy it's in recession, in fact. And it needs as many trading partners as it can. In that trading relationship between

Russia and Turkey is worth billions of dollars and both countries are obviously very keen to get it on track.

But I think the significance of the meeting goes much deeper than just the economy, and particularly because it comes so soon after that attempted

coup on July the 15th inside Turkey. This is Erdogan's first trip after that failed coup attempt.

And, you know, there's a sense in which it sends a message that Turkey may be prepared, likely or not, to move closer towards Russia geopolitically.

And certainly, Russia would be willing and able and with open arms to embrace that idea.

SOARES: Let's stick with that. And let me ask that, post that to Arwa Damon, who's in Istanbul and Arwa like Matthew was saying, this is the

first time we're seeing Erdogan a make a trip since the failed coup took place. How can one read his decision to me of President of Putin? Is this

Erdogan turning his back on the west?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the government here will officially say that no, of course, Turkey is not turning its back

on the west. But if you listen to the rhetoric we've been hearing from top politicians to include Erdogan himself, there is a lot of anger and

frustration being voiced towards Europe and the United States whom they frankly do not feel are really standing behind Turkey, especially during

such a sensitive time.

[10:10:00] They don't feel as if they're seeing sufficient support from the west when it comes to how the west was expressing its concern for the

government after that failed coup, and they feel as if the west is simply too busy trying to criticize Turkey's response to this failed coup,

criticize these mass detentions and people being suspended from their positions that we've been seeing taking place, and not really appreciating

what the country itself is going through.

And then of course, they look at Russia, the president being among the first to call Turkey's president on that very night that everything was

unfolding and the fact that Russia hasn't criticized any of Turkey's actions for whatever reason it may be.

So when you look at it within that framework, Turkey most certainly is probably and has actually been openly questioning what kind of a friend the

west really is. And then of course, it looks to Russia. And Russia right now is saying exactly the right thing.

SOARES: Absolutely opening arms many ways. And Matthew it's no secret, we all know it, that they've had a fractious relationship, but can they now

put the bitterness and anger behind them? Where do you there are tensions still?

CHANCE: Yeah, I mean, I think that's what they both want to do of course, they're still at odds over some very big issues, particularly the conflict

in Syria. They're both on opposite sides of the conflict there of course, so Russia is a major backer of President Assad of Syria.

And Erdogan and Turkey are some of his biggest critics and opponents in the region. And there's no sign that we've seen yet of either side changing

that point of view on that issue. But yeah, there are plenty of areas where they can cooperate, particularly in the area of trade.

And I've mentioned already that the flow of tourists to Turkish resorts from Russia, that's important for Turkey. Russia also wants to do more

energy deals inside Turkey, sees it as a major transit hub for the transportation of its natural gas to European markets.

And so, that was a project that was always already under way. It was called the Turk stream pipeline but it was suspended because of the shoot down of

the warplane. And the hope is that kind of thing can get back on track again and be lucrative for both countries.

SOARES: Matthew Chance for us in St. Petersburg, Russia, and Arwa Damon for us there in Turkey. Thank you very much for you both.

As soon as we have more on that presser, you're looking and we'll show you the live images, as soon as that happens, we shall bring it to you that

it's expected to happen in St. Petersburg. In Russia we're expecting in the next few minutes. Also we'll bring that to you live.

Now, in Syria, the United Nation is calling for an urgent cease fire in Aleppo so humanitarian aid can be provided. The U.N. warns of diet

constipation with access to powering clean water isn't restored to an estimated 2 million civilians.

Supplied routes into the city having cut off, and the intense fighting between rebel as well as government included.

This is the International Desk. Still ahead on the show, we go to Rio for a live update on the Olympics, and high drama, it seems, in the swimming

pool.

Also ahead, another day of waiting for frustrated delta passengers as the airline scrambles to clear out a massive backlog of flight cancellations.

We'll have much more after this.

(COMMERCIAL BREAK)

[10:15:25] SOARES: You are watching the International Desk and I'm Isa Soares. The second international aid worker has been arrested by Israel for

allegedly helping Hamas. The U.N. work is charged for diverting humanitarian resources "To Serve Hamas' military interest."

CNN's Oren Liebermann has joins us now with more details and Oren, talk to us a bit about these allegations against this U.N. worker. What do you know

thus far?

OREN LIEBERMANN, CNN CORRESPONDENT: Well, this case focuses around 38-year- old Waheed al-Borsch, who lives in Gaza and works for the UNDP, the U.N. Development Program which is a humanitarian arm of the United Nations that

works in Gaza.

The Shin Bet which is Israel's security agency has charged al-Borsch and accuses him of using his position with the U.N. to make sure that Hamas his

military wing and Hamas get aid before other Gazas, before the rest of the people in Gaza for example the Shin Bet says that al-Borsch would use his

position to make sure that areas that were destroyed in the 2014 Gaza war where Hamas members lived were rebuilt before areas were -- that weren't as

populated by Hamas members.

In addition the Shin Bet says that al-Borsch used his position to help Hamas construct a military jetty in Northern Gaza. The charges against him

are helping an unauthorized organization, Isa?

SOARES: And Oren, this is of course not a first time that this happened either I believe if I'm correct, correct me if I'm wrong. So how is the

United Nation's reacting to this?

LIEBERMANNS: So the United Nations asking for that a response yet. The UNDP hasn't responded yet to these specific allegations. We are expecting that

soon and we've been in touch with our spokespeople.

The last case which was just last week charges files on Thursday are against Mohammed Halabi. Now he was a worker for US-based World Vision, a

different humanitarian organization that's not part of the U.N. but the Shin Bet, again Israel's security agency, charged him with not only being a

member of Hamas's military wing, but using his position as the Gaza director of the branch of World Vision to siphon millions of dollars away

from World Vision, away from their humanitarian projects, and divert it to Hamas' military wing.

Because of that investigation, because of the seriousness of those charges, two countries, Australia and Germany have already announced that they're

suspending the funding they put for world vision projects in Gaza. World vision has responded. They say they'll cooperate with the investigation,

but they're skeptical of the charges.

Let me read you the statement coming from President and CEO of World Vision Kevin Jenkins. He says, "If any of these allegations are proven to be true,

we will take swift and decisive action. Unfortunately, we still have not seen any of the evidence. World Vision's cumulative operating budget in

Gaza for the past 10 years was approximately $22.5 million, which makes the alleged amount of up to $50 million being diverted hard to reconcile."

A clear statement from world vision there, they're skeptical, but they will go with the investigation pending the conclusion of the investigation, Isa?

SOARES: Oren Liebermanns there for us. Thanks very much Oren, very good to see you.

Now, thousands of lawyers in Pakistan are demanding justice for their slain colleagues. They took to the streets in nationwide strike on Tuesday to

protest an attack targeting lawyers. Dozens of lawyers and journalists were killed in a hospital bombing if you remember in Monday. That's hours after

prominent lawyer was gunned down. The striking lawyers gave a message of unity in the face of terror.

(BEGIN VIDEO CLIP)

LATIT KHOSA, PAKISTAN LAWYER (Through Translator): Those who believe that these lawyers or this nation will become scared or nervous, that they will

succeed in their nefarious designs, we want to give them this message that we will follow them to their last breath, their last resort, their last rat

hole. God willing, we will stand shoulder to shoulder with the whole nation and flush these terrorists out of their last sanctuary.

(END VIDEO CLIP)

SOARES: Both the Pakistan, Taliban group and ISIS have claimed responsibility for that hospital attack.

The world's longest known hunger strike has just ended in India. Irom Chanu Sharmila broke her fast today. She stopped eating back in 2000, after the

killing of 10 people alleged by Indian soldiers.

She was protesting a decades old special powers act which gives the military the right to detain suspect without a warrant and shoot on fight.

Doctors force-fed Sharmila through a drip in her nose for more than a decade. She was being held in a state custody for attempted suicide. It's

believed she'll campaign for office next year in the whole region of Manipur.

[10:20:02] It is the fourth full day of competition at the Olympics in Rio de Janeiro Marquee of action includes U.S. women looking to cement a

dominance in gymnastics, as well as more swimming finals.

Our Amanda Davies is watching all the action for us and joins us now from Rio.

And Amanda, lots of drama happening in the pool, first of all, including last night's face-offs between Russia and the U.S. and between an

Australian-Chinese swimmer, all because I believe doping allegations. How tense was the mood?

AMANDA DAVIES, CNN WORLD SPORT: Yeah Isa, it seems like there's been a bit of a water shed moment really a line drawn in the sand or in the aquatic

center if you like. After the International Olympic Committee's handling of the Russian doping scandal. They refuse -- their decisions that not to ban

all Russian athletes.

Their refusal was the word I was looking for, because last night, Lilly King, the 19-year-old American, announced that it wasn't just about winning

an Olympic gold in the 100 meters breaststroke, or indeed, breaking an Olympic record. It was about making a statement that clean athletes can

compete and win at the top level. Her comments really were aimed at Russia's Yulia Efimova, a Russian swimmer world champion who had previously

been suspended and banned for a doping offense.

She was meant to be banned from this Olympic Games. But forced, she decided to appeal against her suspension and won. So, she took to the pool last

night. She was booed as she walked out. And was very much the subject of the good versus evil debate.

Efimova from her part said that given everything that had happened over the last few weeks, she was just pleased to be there. But you saw the impact

that this has had on her, this treatment because she burst into tears afterwards when speaking to the media. And actually, Isa the rivalry will

resume on Wednesday, both King and Efimova taking part in the 200 meters breaststroke.

SOARES: And Amanda, let's move away from the booing into some Samba action. You, I believe you spoke to Usain Bolt. Is he ready and can he deliver on

obviously on the track, not on the Samba front?

DAVIES: He can certainly deliver on the Samba front. One of the most incredible press conferences I've ever been to more like a carnival really

than a press conference, with Usain Bolt and Samba dancers and Caipirinha on top, which some journalists were taking advantage of given the two-hour

delay for the main man to arrive. I have to say, not to ask but the CNN. We are very, very professional, as always.

But, there were a lot of questions that was raised, when we saw him run the 200 meters in London just a couple of weeks ago. He had been struggling

with a hamstring injury that had seen him miss the Jamaican trials. The big question, everybody wants to know the answer of was, is that is he ready as

you said? He wants to complete that historic treble travel of gold, nine Olympic golds in three games. I was able to speak to him a little bit away

from the crowds and he said he's just desperate to get started.

(BEGIN VIDEO CLIP)

DAVIES: You were so excited about Rio, so focused. You were saying that you are needing your team to keep your feet on the ground. Just a couple of

days to go now, how are you feeling?

USAIN BOLT, OLYMPIC GOLD MEDALIST: I just can't wait to run. It's been boring just sitting around training all the time. I just want to run, you

know I mean? I think this is the longest I've ever been in the village. Normally we get in four days before or five days before, but been here a

week now and I'm just excited to run.

DAVIES: So, what's the difference this time around?

BOLT: I don't know. I don't know why we came in so early. But, as I said, I'm just excited to run. I just want to go there and compete and I'm

looking forward to it.

(END VIDEO CLIP)

DAVIES: And Isa, we'll see him on the track for the first time on Saturday, at the start of what promises to be a fantastic week of athletics on the

track.

SOARES: Yeah, I'm sure he's raving to go. And Amanda, I don't think any of us would judge you if you took a sip of that Caipirinha. Amanda Davies

there for us in Rio de Janeiro, thanks very much Amanda.

Now, it's another rough day for Delta Airlines passengers, a day after that crippling computer outage. We're hearing there are hundreds more flights

being affected.

Samuel Burke joins me with more on that. And Sam you won the story yesterday. We saw some very chaotic scenes. How is it looking like today?

SAMUEL BURKE, BUSINESS & TECHNOLOGY CORRESPONDENT: Well, 1,000 flights canceled yesterday have translated in 250 flights canceled today. Two

hundred flights delayed on top of that. And yesterday, what happened was the number kept on increasing throughout the day.

Delta would tell me it's just 200, then 400, then 600. So, I'm keeping my eyes fixed to see if that number keeps on going up, $200 for any passenger

who had to wait more than three hours. But, of course, as vouchers, they would have to use on Delta.

[10:25:02] SOARES: So they're really still playing catch-up on this front?

BURKE: I mean absolutely, the knock-on effect will go on for days. Remember if you just missed one day, one flight rather and you try and get another

flight, you see how few flights, having two seats there are. So, we're talking about thousands of people trying to get seats now. So it's going to

keep on going on .

SOARES: Right around the world. And do we know some of these because yesterday was very early. We weren't getting many answers from Delta,

because of course they were trying to get people to their destinations. What was behind this?

BURKE: Well, they say that it was some type of power outage within their systems. But, it really was a convergence of issues that has hit not just

Delta, but a lot of other airlines because this is a story that we keep on hearing over and over again. So let me put up on the screen what the issues

are mainly. Experts tell us mergers, you have delta merging with another airline.

They're trying to combine their different software programs. On top of that, each individual airline, before they merge, they have already mixed

systems. You know, when you call up and they say, is this a domestic or an international flight? The reason I asked you that, if they'll use two

separate software programs depending on what's happening. You also have a lack of investment.

People thought that there was a lot of cash in these -- there's lot cash in these airlines. Well, they were cash strapped for a long time and didn't

invest. And many times, it comes back to human error, which comes back to this whole list. There's a lot more chance for human error if dealing with

many different types of system.

SOARES: So no streamlined system?

BURKE: Not at all. We're talking about airlines that may have six or seven different types of systems for what should really only be one if they were

starting fresh today.

SOARES: Samuel Burke, thanks very much. Let us know as soon as you have more.

Now, Italy's beaches get crowded in the summer. We all know that, and we've been there. So crowded, in fact, the coast guard is cracking down on the

so-called towel hogs. Anyone caught staking out a prime a beach spot overnight with a towel, umbrella, or beach chair faces a fine of $220. The

coast guard is also seizing items left unattended before the beaches officially open in the morning.

I will say the Brits and the Germans probably to blame. I want to take you now to Russia, St. Petersburg. President Erdogan with Putin talking now,

let's listen in.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (Through Translator): We have just recently, completed the main part of our negotiations with Mr. President

Erdogan. It's understandable under this meeting has a very significant importance for the fate of Russian and Turkey relationships.

We had constructive talks about entire list of our relationship, as well as the regional issues. Our history of our relationship have different

periods, but the festival I would like to say that despite the complex internal political situation in Turkey, Mr. Erdogan sees the opportunity to

come and see us in St. Petersburg, and it shows the interest of our Turkish partners in renewal of relationship with Russia.

And today, first in a close circle, and then internally with delegations, we talked about our plans, all of our priorities, and further actions so we

can reestablish into state connections. The top priority was reestablishment of our bilateral relationship.

If we remember last year, there was 23 percent drop in our businesses, and it was very sad situation. Now we have to reanimate our economic

cooperation. And this process has already started, but it might take some time in 22nd of July. We had delegation of economical book of Turkish

government, and the special attention is paid in decisions and realizations of the effective projects.

It's very important that our business circles in support of this. After this conference we will have opportunity to talk to heads of major

companies of both countries.

[10:29:58] We also talked about the limitations in embargoes issue with Turkish businesses. We also discussed the scientific cooperation in 2006

and 2019 is just -- we agreed to renew the main mechanisms of our corporations.

We also order at both countries of relevants institutions to have strategic planning a meeting.

I also would like to emphasize that our trade and economic corporation. And the very important place in this is energy sector. And we also discussed

projects in these spheres and continuation of the work that which will require also political decisions. I would like also to say that certain

decisions we took the Turkey's side has already made decisions.

Decisions on the nuclear power station plant, construction, and the Turkish stream pipeline. On the agenda today was also return the low -- the

tourists to Turkey.

I hope that we will manage to achieve pre-crisis level of our tourism. And I think it's just a matter of time.

We also looked within these regards, we also looked at the charter flight reestablishment and I think it will soon be a result. Also we discussed

embargo -- Russia's embargo on Turkish goods and construction work.

We work on this and we will resolve it very soon. And I would like to say that, the massive -- the major developments in the work sitting in our

major projects never actually stopped.

We still have major companies building roads around St. Petersburg.

In details, we exchanged views about -- our views about international problems. We agreed that after this press conference. We will discuss

separately. We'll discuss the all matters related to Syria regulation and settlement. We have -- during this understanding that's about the fact that

the war on terrorism is the most important.

And then I would like to thank President Erdogan for open discussion, sincere discussion today. Of all negotiations and confirmation that we have

everything we need to work together not just in our region, but all around the world. And Russia is ready to do this work. Thank you for your

attention.

RACEP TAYYIP ERDOGAN, TURKISH PRESIDENT (Through Translator): Honorable head of state, my dear friend, honorable ministers, valued members of the

press, ladies and gentleman. I greet you with heartfelt feelings and respect.

First of all, I would like to thank Mr. Putin, President Putin for his hospitality. On my behalf and on behalf of my delegation, we've had very

beneficial discussions today. As you know, this is our first meeting after a long gap and after a certain event incident. We had in Turkey. And this

is my first visit abroad since that event. And I'm exercising this by visiting the Russian federation.

I'd like to say that both parties are determined to improve bilateral relations. And it is my assumption that's the communities of both countries

have this expectation of us.

[10:35:07] We have discussed matters and to decided, to improve the relationship between Turkey and Russian federation to the levels that is

desired. In this context, improving relations between our countries, starting charter flights between countries, and eliminating restrictions on

trade, on Agricultural goods.

These are three regimes to be brought back into practice and similar headline, where some of the areas that we've decided to take steps forward.

Especially, I should mention the nuclear power plant. And our intention to apply a strategic investment status to that project, and we are making

steps in that area. We will increase our cooperation in the defense industry. And in relation to the regional issues, we've decided to set up a

three-country formation, including Azerbaijan, Russian Federation and Turkey.

And it is important that we take steps to speed up our clear (ph) nuclear plant project. And by making there moves we got really improve our

relationship between Ankara and Moscow. And present it as a relationship of friends.

As you know, on the 15th of July, the Turkey was subjected to bloodiest and most detestable attempts at a coup d'etat.

The Fethullah Terrorist Organization was behind that failed attempt. But of course, because of all these -- despite of all these problems we will

continue our bilateral relations and our decisions will be implemented.

And we will work on improving and putting into action the Turkish stream project as well our respective ministry as we are been working hard to

speed up that process.

The fact that the President -- Mr. President was one of the first to contact us to give us, to express us his sport after the failed coup

attempt is very significant and that has been noted as such.

Our relationship does not have only bilateral effects or importance. It is also important to reintroduce stability to our region. In a short moment,

the two of us are going to have one to one discussions. And we are going to talk about these important matters in detail.

And it is our -- thanks to the popular support that we received. Our relationship have grown. My dear friend, Mr. President and I have show --

displayed a joint position. Showing that we have the will to show to the rest of the world that we act -- we will be acting together as friendly

countries. Turkish-Russian relationship will continue to improve and we believed that our relationship is much stronger than it used to be.

I'd like to thank my dear friend, Mr. Putin, for his invitation and for his hospitality on my behalf and behalf of my delegation.

[10:40:00] And I'd like to express my thanks to the rest of the delegation here, the members of the press, ladies and gentlemen and to the communities

of Turkey and Russia.

UNIDENTIFIED MALE: I preside we'd have chancellor ask two questions. The first question comes from Lamia Iham (ph) a news.

SOARES: You have been listening to the Russian and Turkish Presidents talking today. They have been meetings the first time since that attempted

failed coup in Turkey. Lots on the table there.

They both President Putin said it was a sincere and constructive discussion. President Erdogan called it comprehensive and beneficial. Lots

on the table, but perhaps the most important from both of them saying that top priority, establishment of bilateral relationships to pre-crisis level.

That's before, of course if you remember, they were on the strain boat those countries following their Turkish shooting down a Russian jet.

Over the board with Syria Matthew Chance is in St. Petersburg. He's been listening in. And Matthew, plenty there, let's start off with what you

thought was a to apply. For me, was (inaudible) energy and economy playing a very important role here?

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yeah. Look, I mean the energy deals, the economic deals that were going to be reinstated here.

And they haven't been actually signed and sealed yet. But the idea that they're going to reinstate this very lucrative trading relationship between

Russia and Turkey, that was always going to be on the table. They were always going to talk about reestablishing charter flights between Russia

and Turkey, to allow Russian Tourists to go back into those resorts in Turkey that have been so badly hit by these embargoes.

They were always going to be talking about lifting the embargo on Turkish food stuffs. Russia had been a main importer of Turkish products previous

to this crisis.

The exports have gone down something in the region of 60 percent according to the figures that I've seen. And they were always going to talk about

trade in the other direction as well. Russia restarting construction of the Turkish stream gas pipeline. Russia sees Turkey as a major gas distribution

hub for Southern Europe.

And other projects as well. It was talk about a nuclear power reactor. Russia has been in talks previous to the crisis about building Turkey's

first nuclear power reactor. That was, again, mentioned as well.

And so there's a lot of economic stuff and for both countries coming out of this meeting, and coming out of a renewed trading relationship. But you

asked me what struck me most starkly. And I think it was the fact that I counted four or five times that President Erdogan called President Putin

"my dear friend." And that will be something that I think that will be listened to very carefully, if not actually alarm many of Turkey's allies

in the NATO military alliance, in the European Union as well. Because the big concern here is that because Turkey is so angry with the west. It could

turn more geopolitically towards Russia's sphere.

SOARES: Matthew Chance there with us. I want to bring Arwa Damon for us in Istanbul. And Arwa, like Matthew was saying, friendship, friends, many

times coming up.

I heard President Erdogan calling it a relationship of friends. We want a renewal of partnership. And interestingly, as well, I heard President

Erdogan say that Putin's phone call after Turkey's failed coup meant a lot psychologically. How are you interpreting this press conference?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Look, this is a lot of the same rhetoric that we've been hearing from President Erdogan ever since

the night of that failed coup attempt.

Quite frankly, he and by and large the government and many people within the nation as well do not feel as if the west really understood the

severity of what it was that Turkey was facing that night. The potential repercussions of what could have actually happened had the coup succeeded.

And that the west didn't really stand strongly enough behind the Turkish leadership, but instead its been focusing a lot more on criticizing Turkey

for some of its post-coup actions. Such as its widespread and what some would say indiscriminate to a certain degree detentions of tens of

thousands of individuals, who were either thrown behind bars or suspended from their jobs.

And they feel as if an individual like Putin, which is why his name keeps coming up over and over again, said exactly the right thing. He said that

he stood by the Turkish government. And he did not once criticize Turkey for its actions.

This has been something that is being debated over and over again within Turkish media as well. There's difference in attitudes between Russia,

which was a nation with which Turkey was at odds up until very recently and its so-called allies, Europe and the United States.

[10:45:04] So this is again, that sense that perhaps Turkey is looking around, not necessarily sensing the level of warmth or support that it

wants to from the west. And it's looking at what other options it has. Its main option emerging right now most certainly appears to be Russia.

SOARES: How is their new relationship, new friendship being interpreted in Turkey, Arwa?

DAMON: Look, Russia and Turkey always had very, very strong economic and trade ties. Russia is the second largest nation that Turkey exports to, and

those exports did take quite a hit due to these restrictions that were placed by Russia. Turkey also already lost hundreds of millions of dollars

in the first six months of this year due to Russia's restrictions that were placed, that ended up impacting the tourism industry.

When it comes to this trade and economic relationship, that's one conversation was very interesting in all of this is how compartmentalized

these conversations seem to be, because these are two countries that are at complete and total odds when it comes to another vital regional issue, and

that is the war in Syria. Russia firmly standing behind the Assad regime.

Turkey firmly supporting the opposition and yet both countries, as we heard the rhetoric in that press conference, in broad strokes agreeing on the

need to stand strong when it comes to the war against terrorism. So, I think for a lot of Turks at this stage, they do want to see normalization

in relationships because it is going to potentially economically benefit them.

But, this does not necessarily mean that these two countries have even come close to being in agreement on the key issue of Syria. Of course, Turkey

greatly impacted by that war given the sheer volume of refugees and the other repercussions it has felt within its own borders.

SOARES: Arwa, do stay with us, because I want to bring in James Jeffrey, the former U.S. ambassador to Iraq and Turkey and a visiting fellow the

Washington Institute. And Ambassador, I believe you were listening to the press conference. I want to get your thoughts first on this normalizing of

relationships between both of these leaders.

JAMES JEFFREY, FORMER U.S AMBASSADOR TO IRAQ AND TURKEY: Well, Arwa Damon, as usual, got it exactly right. But, what I would add is Erdogan mentioned

a very important project called Turkish stream. This is an idea of Putin's to replace the huge amounts of gas that flow to Europe through Ukraine

currently with a southern route. He tried that through the black sea. It was refused by the European Union.

He's now trying to do this through Turkey. This would be a real strategic game changer. These countries have long had good energy relations. The

nuclear plant, the gas shipments and they remained even during the freeze after the shoot down jet, Russian jet.

But, this new project would have a tremendous impact on the strategic situation and on Ukraine and on Europe. So, I think we need to watch this

very, very closely.

SOARES: And ambassador what did you say on the Turkish stream, they basically said the gas project with Russia will be a realized swiftly, were

the words. So, how are you interpreting this, ambassador? Is this Erdogan turning his back on the west?

JEFFREY: Well, Turkey has always, even before Erdogan tried to play off Russia with NATO, the United States, and Europe. It's been part of their

foreign policy. They see themselves as caught between the two. They're in an alliance, in a trade union with the European Union and America, but they

also want to have a relationship with Russia, too, which is economically important and a strategic problem for them.

Nonetheless, what's dramatic here is the way we reflected -- I would almost say distaste towards Erdogan despite what happened with the coup, which was

a dramatic event for most Turks, while Putin immediately rushed in and embraced Erdogan and we're seeing some of the results of it right now. This

was not handled well, either by the United States or by Europe.

SOARES: And I'm seeing now that Putin basically said that it needs painstaking work, ambassador, to rebuild Russia-Turkey trade ties. How much

of a dent has this had on turkey? Economically I'm talking about.

JEFFREY: It's had a significant impact up to perhaps 10 percent of Turkey's exports were impacted by this. But again, as Putin said, construction

projects continued in Russia and Turkey continued to import Russian gas in the joint nuclear project, nuclear plant project went on.

So some of it stayed in place, some of it was terminated by Putin after the fighter airplane incident. But, it can come back very quickly because

Turkey has a lot of advantages as an exporter.

[10:50:00] Nonetheless, the economics are being separated from the political discussions. You notice they're going to talk about Syria

separately after this press conference. That's very unusual that they're doing it this way, and it indicates that they are trying compartmentalized

a relationship between the happy face which is the economics and perhaps a more difficult discussion over Syria and the situation in the Middle East.

SOARES: Ambassador, do you stays with us. I want to take you back live to that presser between President Erdogan and President Putin. Let's listen

in.

UNIDENTIFIED MALE: From Mr. Putin which you said to you a very happy about after the 15th of July. Linking this question to the current deteriorating

relations between Turkey and United States how does that have -- how would that affect your relation -- Turkey's relation with Russian federation?

PUTIN: Was regard of restoration our relationship do we wanted or not? Yes, we do want it, and we will be doing this. Life is very developing very

quickly and after certain embargoes where imposed within those limitations. Certain transformation took place in life and we have to consider those the

transformations and consider a restoration allow it trade and economic actions.

We today decided and to prepare a scientific cultural and economic collaboration program on the governmental level. I mentioned it today. I

think this program will be set up in the nearest future especially in those matters that does not require a lot of discussion by agencies.

I offer you to follow a work of our commissions and agencies. We just discussed that our colleagues will be continue a contacts without less

bureaucracy as possible and the certain number of matters will be decided upon in a very nearest future.

We have discussed today, we talked about economic collaboration as we also our partners going to write the question about air and transportation, visa

limits, visa regime and we have to consider all -- consider unblock all barriers to economic collaboration.

ERDOGAN: I would like to thank Mr. President. What he just suggesting is to make a comparison between relationships then and now. Let me answer your

question in this way, as far as the relationship between Turkey and Russia is concerned, we have reached $35 billion of trade volume that has gone

down to $27 billion to $28 billion since that period.

But as you know we have an agreement called UDIK and we have a high level strategic partnership agreement was reached between the two of us and we

had filled our work on that foundation.

And now, we are in St. Petersburg and with the intention to continue on our path from where we left it and the next meeting well build on these

discussions. As you know, the target set between Turkey and Russia as a trade volume was $100 billion and we had determined to work towards that

objection and restart the process towards again today. And we will be as determined as we have always been.

[10:55:03] In relation to tourists coming from Russia to Turkey, as you know there was a tremendous amount of facilities possibilities provided to

Turkey. It is not possible for Turkey to ignore that and forget about that or give up that. During our discussions today, Mr. President said that they

will speed up the process to release charter flights to Turkey and that's a good indication of good relations improving even in further.

UNIDENTIFIED MALE: Recently foreign media raised a theme about the United States giving Iran millions of dollars cash. Then there are several

versions like some of them say that it was the payoff for released of four Americans from Iran Iranian prisons. And I would like to hear about details

of this special operation and ask do we have U.S. airplanes flying to us discuss as well? I understand to a certain degree of irony but I can tell

you that we don't do exchanges and we don't pay ransoms but yes .

SOARES: You're listening to the Turkish and Russian presidents meeting for the first time since Turkey downed a Russian warplane last November if you

remember. There they talked about their meeting which they described as beneficial constructive and sincere. Their top priority according to Putin

was establishment of bilateral relationships to pre-crisis levels.

We've also heard a lot on the table specifically on the energy sector as well as on the economy front. They also talked of course about ISIS. They

said about the Syria and they pick up to another meeting (ph).

We'll have much more after this short break "Connect the World" is next.

(COMMERCIAL BREAK)

END