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Houston Over 95 Percent Dry, Businesses to Open Tomorrow; U.S. Calls for Strongest Possible Sanctions Against North Korea; Lawmakers React to Trump's Plan to End DACA; Cat-3 Hurricane Irma Could be Headed for U.S. Mainland. Aired 1:30-2p ET

Aired September 4, 2017 - 13:30   ET

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


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[13:30:00] REP. KEVIN MCCARTHY (R), CALIFORNIA, HOUSE MAJORITY LEADER: And it's the first tranche for FEMA so FEMA can continue to be able to supply. But as the cities and counties get the estimate of the cost of the others, we'll be working with the governor, the Senator, and the delegation to make sure we get the next tranche of the supplemental together to come back to Texas.

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JIM ACOSTA, CNN HOST: CNN's Stephanie Elam joins us live in Houston.

The city's mayor says that Houston is open for business and hopes everything is on track to move forward after Labor Day. What do you see on the ground there, Stephanie? A lot of debris behind you.

STEPHANIE ELAM, CNN CORRESPONDENT: Yes, Jim. You're right, most of this, driving around, seems you can get in. Still, parts under evacuation in west Houston. And neighborhoods like this one where they are just completely gutted by the floodwaters that came through their house in the middle of the night. Imagine the waters rising so fast you have to use an air mattress to float out your grandchildren. That's what one couple had to do. They eventually got a boat to go up and down this street. That's how much water was here. Going up to five feet in their house.

Now that everyone's able to make it back to this neighborhood, this is what they're dealing with. Having to pull everything out of their house, from their carpets and furniture, to the toys, to the drywall, everything. Pulling it out hoping to get ahead of the mold setting in. But this is what it looked like in this northeast Houston neighborhood where they are just, there are piles of rubbish, as people are trying to figure if they can salvage their homes. For many of these people here, Jim, this is where they had all of their worldly possessions within these homes. Work hard to buy these homes and have nowhere else to go. To compound problems, they're having -- most of the cars are lost because they were flooded overnight when this happened. And they're still having to figure how to go to work because they desperately need paychecks. But at the same time, they need to be here working on getting their homes back in order. And they're trying to reach out to FEMA. And for some of the families here, they're saying the process of getting in touch with FEMA, having them come and look, extremely frustrating. They want to know where to begin the process of rebuilding their lives after this massive flooding -- Jim?

ACOSTA: And patience is tested, I'm sure. I assume block after block, that scene you're showing behind us, for miles on end.

ELAM: It very much is. Like you could drive for blocks in either direction, and see this between two bayous and that water just rose up, in fact, coming up through the back of their houses in the middle of the night. Rising so fast within an hour they said they had probably over a foot in their House. So eventually going up to five feet on this side of the neighborhood.

ACOSTA: Incredible images.

Stephanie Elam, thank you very much. We appreciate it.

Just as Houston begins to rebuild, another storm is picking up strength. Details on Hurricane Irma, yes, Hurricane Irma's path as it closes in on the Caribbean. Stay with us.

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[13:32:04] ACOSTA: We're continuing to follow developments in our top story, the growing crisis with North Korea. The U.S. condemning North Korea at the United Nations today following Pyongyang's latest and strongest nuclear test over the weekend. We're also learning that South Korea's president had a phone call with Russian President Vladimir Putin earlier today. South Korean officials say the two discussed cutting off North Korea's crude oil supply, as well as cutting off sources of foreign currency for the regime.

Joining me from Tokyo, CNN's Will Ripley, who was in North Korea until last week.

Will, you heard what the Russians and South Koreans are talking about. Can any of these measures really deter North Korea? Are they showing any signs they'll back down or are these escalations going to continue?

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: From the North Korean perspective, and what they've reiterated to me all of this past year, including last week, no, Jim. They are not afraid of sanctions. When I even asked in Pyongyang if China were to cut off that country economically, completely cut them off, they acknowledged it would be painful. There's a growing consumer class in the North Korean capital. We see Chinese cares on the streets, Chinese goods, and gasoline, oil comes from China.

And they've acknowledged it would be very difficult. It will certainly cut into their standard of living. But they point out they've survived much worse in North Korea. They faced the collapse of the former Soviet Union, a series of natural disasters and economic mismanagement in the latest 1990s leading to the great famine during which hundreds of thousands of people died. People were eating grass and tree bark. And even during that time, the regime stayed in control. People

stayed loyal. And they continued to develop their weapons, their missile program and their nuclear program. You see this defiant message from North Korea, this major nuclear test. And now they may be preparing to launch another intercontinental ballistic missile towards the Pacific Ocean, possibly in the direction of Guam in the coming days -- Jim?

ACOSTA: OK. Will Ripley, in Tokyo. Sounds like more of the same from North Korea. Appreciate your work in and out of the country.

Will Ripley, thanks very much. We appreciate it.

And joining me here, Balbina Hwang, a former senior adviser at the State Department and a visiting professor at Georgetown University.

Democratic Senator Ben Cardin, the ranking member of the Foreign Relations Committee, he was on CNN earlier today, speaking about this potential path the U.S. is on right now with North Korea, this tough talk escalating on both sides. Take a listen.

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SEN. BEN CARDIN, (D), MARYLAND: I think the military options are somewhat limited because of the risk factors involving South Korea, involving Japan. One thing is clear, the president's tough talk has not appeared to change the calculation of North Korea. What the president needs to do is engage China and, hopefully, Russia to put the type of pressure on North Korea that changes their calculations.

(END VIDEO CLIP)

[13:39:56] ACOSTA: And what do you think the impact has been? This tough talk we've seen escalate? The president talking about fire and fury. Even yesterday, the defense secretary saying there would be this massive response if the U.S. is threatened in any way or allies are threatened in any way in that region. What does that do to the situation, do you think?

DR. BALBINA HWANG, VISITING PROFESSOR, GEORGETOWN UNIVERSITY & FORMER SENIOR ADVISOR, STATE DEPARTMENT: I think we have to remember that the context is very important. There's always been fire and fury rhetoric off and on throughout the decades from all sides. And so we are in a state where we have a president who likes to make hyperbolic statements. I think that's just who the president is. But Secretary Mattis yesterday was very, very clear. It was no -- he was not threatening military action, unless North Korea stages some sort of offensive attack against the United States and its allies. So it's important to understand he's talking about defense as an option that we've always had.

ACOSTA: And had Congressman Mike Coffman, on beginning of the hour, and was talking a potential option, conduct yore missile test that we shoot down one of those missiles. How would that be greeted in Pyongyang? What would that do to this crisis, do you think?

(CROSSTALK)

ACOSTA: Would it be considered an act of war by North Korea?

HWANG: Well, I think it would depends. I'm not sure we have the technology to shoot down a missile. It depends where it is. We have active missile defense systems but there's very specified ranges it can effectively destroy a missile. So just sort of flying around, it all depends on the actual missile.

ACOSTA: And let me ask you about some of this trade talk. You hear the president and the White House threatening trade with China. There's even talk of threatening trade with South Korea. The president apparently is not happy with way the South Koreans are talking about this issue in recent weeks, that they may prefer a more diplomatic route in talking with the North Koreans. What is that doing, do you think, to the U.S. position in the region? Is this president becoming more isolated? If he's threatening China and South Korea and so on, in addition to North Korea?

HWANG: Well, again, this is why context is so important. I think we have a president and an administration that was very clear from the very first day that trade was a big issue for the United States. But it's looking at trade through one specific bilateral angle. So U.S. ROK, South Korea trade, there is a trade agreement. That is being viewed separately as from the North Korea issue. Interestingly, President Trump's latest tweet is trying to make the connection between U.S./China bilateral trade and the North Korean issue. That's where it becomes a little messy, actually, quite messy, quite frankly.

ACOSTA: How so?

HWANG: Well, because the United States and China are the two largest economies in the world. And currently Chinese global trading status is crucially important. Actually, so is South Korea's. South Korea is the 12th largest trading -- largest economy in the world, and the seventh largest trading partner. So there's a complex web of multilateral trading relationships.

ACOSTA: And do these sound like empty threats? Can the president really just go and cut off trade with China because he doesn't like he's getting from North Korea? Doesn't that weaken his position somewhat to engage in that kind of rhetoric?

HWANG: The United States probably cannot just cut off all trade with China. Having said that, President Trump likes to tweet these hyperbolic statements.

There may actually be a silver lining in this kind of crude talk in the sense that one thing it did was certainly wake up China and put Xi Jinping on notice that perhaps this president might be serious and that China might need to start taking some real action.

ACOSTA: We'll see what the end result of that is.

Balbina Hwang, thank you for your time. Appreciate it. Another major story taking shape today, President Trump's plan to

terminate the program that protects undocumented immigrants who came to the U.S. as children. The news has sparked reviews on all sides from within his own party. Lindsey Graham weighing in a few moments ago. And we'll bring you that reaction, next.

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[13:48:30] ACOSTA: Sources tell CNN President Trump is expected to end a DACA program designed to protect nearly 800,000 undocumented immigrants who came here as children from deportation. That has sparked backlash from both sides of aisle, with several Democrats and Republicans saying this is the wrong call.

Senator Bernie Sanders tweeting, "If Trump decides to end DACA, it will be one of the ugliest and cruelest decisions ever made by a president in our modern history."

Listen to what House Speaker Paul Ryan had to say recently.

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REP. PAUL RYAN, (R), WISCONSIN SPEAKER OF THE HOUSE: I actually don't think he should do that. And I believe this is something that Congress has to fix.

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ACOSTA: Joining me now to discuss, Javier Palomarez, president and CEO of the United States Hispanic Chamber of Commerce. He's also a member of the president's Diversity Council.

Javier, thanks for joining us.

Let me ask you, will you stay on the president's diversity council if he gets rid of DACA?

JAVIER PALOMAREZ, PRESIDENT & CEO, U.S. HISPANIC CHAMBER OF COMMERCE & MEMBER, WHITE HOUSE DIVERSITY COUNCIL: Jim, thanks for having me, first of all. That remains to be seen. I'm going to work up until the bloody end to try to convince this president to do the right thing by these 800,000 Dreamers who reside in this country. To the points that were made earlier today, the vast majority of them were brought here as children. On average, younger than 6 years of age when they got here.

Some 65,000 Dreamers graduate from high school every year. Some 10,000 graduate from college every year. They have been vetted rigorously. None of them have committed a crime of any sort. They are not eligible for any kind of welfare or government benefits of any sorts. These are the type of young people we need in this country. And I'm going to work until the bloody end to try to convince this president to do the right thing by these young people.

[13:50:22] ACOSTA: Javier, it sounds like, if the president ends this program, even with the six-month delay, you may decide to leave that Diversity Council. Is that right?

PALOMAREZ: That is correct. But again, Jim, I'm going to work with him and his administration. I was just on the phone with the White House. I want to remind him and his team that, from an economic standpoint -- and again, we're business people at the United States Hispanic Chamber of Commerce. If you look at this purely from an economic standpoint, again, none of them young people get benefits of any sorts. They're not costing us anything.

They pay over $2 billion in taxes in the form of state and local taxes. It would cost the American taxpayers over $60 billion to deport all these young people, and over a 10-year period of time, our economy would lose some $280 billion of economic output if we get rid of these Dreamers. Again, there's no reason to take this on. This would be a deplorable action on behalf of this president. And I'm going to work until the bloody end to make sure that my case is being heard.

And, hopefully, hopefully, joined by the likes of Speaker Ryan, John McCain, Orrin Hatch, Congressman Coffman, who was on the program earlier, and many others in the Republican party. Hopefully, we can convince this president to do the right thing here.

ACOSTA: Javier, you heard Speaker Ryan a few minutes ago. We know several top Republicans are not on board with this. But lindsey Graham is weighing in. He sounds somewhat supportive of this. Let me read this to you. It says, "I've always believed DACA was a presidential overreach. However, I equally understand the plight of the Dream Act kids who, for all practical purposes, know no other country than America. If President Trump makes this decision, we will work to find a legislative solution to their dilemma."

How confident are you, Javier, that the Congress can figure this out?

PALOMAREZ: You know, they haven't done it yet, but I think this may be that opportune moment. These are the types of moments that define people, that define American leaders. I hope they had step up to this challenge. I believe Senator Graham will do the right thing. This is a country of broad shoulders and big hearts. We have to be Americans at a time like this. These young people have done to nothing wrong. They were brought here as children, again, usually before the age of 6. This is the only country they have ever known. From an economic or political standpoint, this is the right thing to do. We need to protect the DACA recipients and keep them in America, the only country they know.

ACOSTA: Javier, the president has said he would treat this issue with heart, that he loves the Dreamers. In your view, if he gets rid of DACA, is he showing great heart and is showing he loves these kids?

PALOMAREZ: If he's getting rid of DACA, he's showing that he's a liar. He has said he's going to try to protect the people in the DACA program, that he was focused on getting rid of criminals. We certainly support that piece of his thinking. We certainly want to see the criminals deported from our country. But he said clearly to the American people that he had a big heart, that he was going to treat DACA in the way in which it should be treated, and he would protect these young people that are here in the only country they have ever really known.

ACOSTA: Javier Palomarez, a member of the president's Diversity Council, telling us, a few moments ago, he may leave that Diversity Council if the president decides to terminate the DACA program.

Javier, thank you for joining us. We appreciate it.

PALMOMAREZ: Thanks, Jim.

[13:54:09] ACOSTA: Coming up next, as Texas grapples with the aftermath of Harvey, another powerful storm could be tracking to the U.S. We'll track Hurricane Irma and its likely path when we come back.

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ACOSTA: With Texas still recovering from Hurricane Harvey, there's another dangerous storm churning in the Atlantic. Hurricane Irma is already a category 3 storm, and it could be headed towards the U.S. mainland.

Meteorologist Tom Sater is tracking this.

Tell us this ain't so. Tom, this does not sound good.

TOM SATER, AMS METEOROLOGIST: No. It looks more and more like, Jim, we'll have a major hurricane next weekend impacting the U.S. We know it's a category 3 and most likely will be a category 4 this afternoon or tonight. We know the northern islands of the Lesser Antilles are under warnings right now, Antigua, Barbados, St. Kitts. It looks like Anguilla might have a direct hit. And then we'll be watching the U.S. and British Virgin Islands and Puerto Rico. The computer models continue to have a good handle on the environment.

The National Hurricane Center breaks it right in between the Bahamas and Cuba. At some point, we believe it would be lifted northward. Unfortunately, Jim, we're losing that window that would pick it up near the outer banks and slide it out into the open Atlantic. That window is shutting quickly. By looking at all the models, you see a tight cluster. We want to see that. Is it possible it will go into the gulf? It is, but probably not what we think will happen for sure. We think it will take a right turn.

This could be a category 3 or 4 headed toward the southern coast of Florida or the Carolinas on 9/11. And just to give you an idea, this is the European and the U.S. model on 9/11. Puts it on the U.S. coastline in the southeast as a major hurricane.

ACOSTA: OK, Meteorologist Tom Sater, we'll all be watching Irma. Thank you very much. That's it for me. For our international viewers, "AMANPOUR" is next. For viewers in North America, "NEWSROOM" with Brooke Baldwin starts right now. Thanks for watching.