Return to Transcripts main page


Trump administration, pushes for free and open Indo Pacific; Exclusive CNN reporting out of North Korean capital; Raising spirits with India's new wine industry. Aired at 8-9a ET

Aired November 7, 2017 - 08:00   ET



KRISTIE LU STOUT, CNN NEWS STREAM SHOW HOST: I'm Kristie Lu Stout in Hong Kong and welcome to "News Stream."

President Trump says international efforts to pressure North Korea are making progress, but warning that the U.S. will use military force if


The U.S. president's trip triggers demonstrations on the streets of Seoul from both pro and anti-Trump protesters.

And the tragic stories of those lost in the shooting in Texas, the 26 people killed in the church during Sunday services.

U.S. President Donald Trump is addressing a familiar threat from a new and important vantage point on the Korean Peninsula for the firs time. Mr.

Trump spoke a short time ago about the North Korean regime, standing less than 60 kilometers away from the border of North Korea. He and the South

Korean president vowed cooperation in dealing with the nuclear threat. Both leaders expressed the need for other world leaders to step in as well.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: North Korea is a worldwide threat that requires worldwide action. It's time to act with urgency and

with great determination.

MOON JAE-IN, PRESIDENT OF SOUTH KOREA (through translator): We also reaffirmed our view that we are willing to offer North Korea a bright

future. Based on such common approach between our two countries, we will continue to lead efforts to bring peaceful and fundamental solutions to

North Korean nuclear issues. We will maintain close collaboration with the international community, including the neighboring countries.


LU STOUT: Ivan Watson is following President Trump's visit. He joins us now. Ivan, Trump on the face of it, listening to him today, he has left the

fiery rhetoric behind. He is now calling for North Korea to come to the table. Have Trump and Moon reached some sort of middle ground in regards to

North Korea?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, what they have announced that they've truly kind of concrete measures now include a number

of measures. Moon Jae-in, the South Korean president, he pointed out that there would be an increased rotation of basically U.S. military assets here

around the Korean Peninsula.

Another would be to remove limits on the payload for South Korean missiles, the arsenal South Korean missiles, which are limited under an existing

treaty to about 500 kilograms, 1100 pounds.

And a third measure would be for South Korea to immediately embark on trying to acquire U.S. weapons, in particular, Moon Jae-in mentioned

reconnaissance assets. That goes to a theme that is going to kind of come out in the last couple of days both in Japan and here in South Korea, where

President Trump has been sounding a bit like a salesman for U.S. weapon systems and arguing that Japan would also be buying U.S. weapons and that

would be good for jobs back home in the U.S.

But, yes, we've heard reduction in kind of the outright threats that have come from President Trump, the bellicose statements through calling and

insulting the North Korean leader, calling him "rocket man," but at the same time, continuing to talk about military pressure.

President Trump invoked the fact that three U.S. aircraft carriers were in the region as well as a nuclear submarine. And Moon Jae-in echoed that

saying, we have to continue with sanctions and pressure against North Korea with the ultimate goal of bringing the North Koreans to the negotiating

table to dismantle their nuclear weapons.

But we have not heard any sign whatsoever that North Korea will back down from -- what it seems to argue is an existential need, Kristie, and that

its nuclear weapons are needed to protect itself from threat of regime change or invasion. Kristie?

LU STOUT: So, sounds like the U.S.-South Korean military alliance is indeed strengthening. You just mentioned the series of announcement made today to

enhance, to further bolster South Korea's defense capabilities. Is this all meant to send a message to Pyongyang?

WATSON: Yes, for sure. And there is an additional message. You know, President Trump repeated his call for countries around the world, and he

specifically mentioned Russia and China to cut off trade ties with North Korea and to help support the United Nation Security Council resolutions,

many of which have been in place for years, that banned North Korea from conducting nuclear tests,

[08:05:00] from firing missiles. It is worth noting, however, that something seems to have changed at least in the short term. I don't believe

that North Korea has fired a missile really since the middle of September. September is also when it conducted its sixth nuclear weapons test. I'm not

sure why that is, but prior to the middle of September, North Korea was firing missiles on an almost weekly basis. We are not sure what has led to

that pause over the past two months. Kristie?

LU STOUT: Ivan Watson reporting live for us from Seoul. Thank you, Ivan.

Now, President Trump's visit to South Korea has already proved polarizing. The pro and anti-Trump protesters taking to the streets. Paula Hancocks has

more from the South Korean capital.


PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, it's a fairly small crowd of anti-Trump protesters that has gathered here in

downtown Seoul. But they're simply vocal. Organizers say they have about 5,000 people here, pleased themselves, not giving an estimate.

But the message is very clear. They are saying to the U.S. president, Donald Trump, you are simply not welcome here in South Korea. According to

these people here, they believe that Trump has made the situation on the Peninsula even worse.

They believe that he has made it more tense by the heated words that we have heard from him when it comes to not just North Korea but also the

leader, Kim Jong-un. They also -- many of them are against THAAD, the U.S. missile defense system, which the U.S. has brought in.

They have been chanting "no Trump, no war." A little earlier, the Trump motorcade drove straight past these protesters on the way to the state

dinner with President Moon Jae-in. The protesters were ready and they were all chanting "no Trump, no war" as he went past.

There was even a couple of fireworks lit off to mark the occasion. And on the other side of the road, there was a pro-Trump and pro-America

contingent. It was much smaller. The demographic was much older, but they wanted the U.S. president to know that he was very welcome here in South


Police are making sure that the two sides of this argument will not meet, keeping them on the opposite sides of the road. A peaceful protest, a vocal

protest, but one they say with a very clear message: Trump, go home. Kristie?


LU STOUT: So, vocal protests on the streets of Seoul, both for and against the visit of the U.S. president there in the city.

Joining me now is Chung Min Lee. He is a senior fellow at Carnegie Asia Program. A former South Korean official. He works on security issues in

Northeast Asia. Mr. Lee joins us now live from Seoul. Mr. Lee, thank you for very much for joining us. What do you make of this visit? Is Trump's

visit to Seoul a turning point in the nuclear standoff with North Korea?

CHUNG MIN LEE, NONRESIDENT SENIOR FELLOW, CARNEGIE ASIA PROGRAM: I think it surely is, Kristie, for two reasons. Number one, for the first time, a

third world country, a rogue nation, has nuclear capabilities to hit targets in the content of the United States. So this is no longer just a

regional threat but a global and of course to the Americans, a critical threat.

Number two, President Trump is coming to Korea and Asia at a turning point because China is at the apex of its power. And it is crucial for Mr. Trump

to assure its allies and friends all over the world that the U.S. is here to stay on the longer term. Xi cannot -- the U.S. cannot see leadership to

the world through Xi Jinping.

LU STOUT: You have called President Trump's position on North Korea a game changer. How so?

LEE: Because the first time of last 20 years ever since the nuclear crisis began in the 1990s, all previous U.S. and South Korean presidents have

tried engagement, sanctions, diplomacy, and none of them really worked.

I'm not saying that Mr. Trump has a secret plan up his sleeve, but he has told the world and North Korea and China in particular that if you don't --

if China really doesn't push its way and forces Kim Jong-un down the road of denuclearization, the U.S. will take action on its own including perhaps

military actions.

Nobody wants war in the Peninsula. That's the last thing the South Koreans want. But Kim Jong-un is never going to give up nuclear weapons because it

is a part of regime's survival. So, President Xi Jinping must be told very clearly that this is your problem in the backyard, stop calling (ph) North


LU STOUT: We'll see how far President Trump will push Xi Jinping when those two leaders meet later in the week, and whether Xi Jinping will play along.

But focusing now on the sort of the dynamic between South Korea and the U.S., historically, Donald Trump has always said he wants to pressurize

North Korea, he wants more pressure. Moon, more engagement, more dialogue.

LEE: Right.

LU STOUT: Now, today we are hearing Trump wants to make a deal, wants North Korea to come to the table. Do you believe that Moon and Trump have found

this middle ground that they've reconciled their differences on North Korea?

LEE: You know, I think President Moon Jae-in is between a rock in the hard place because he has of course

[08:10:00] have critical security ties to the U.S., our biggest defense partner, we buy a huge amount of U.S. weapons as Japan per year. On the

other hand, our biggest trading partner is China, who has crucial ties with North Korea.

And I think President Trump and President Moon through their discussions tonight and tomorrow will come to some type of a common blueprint which

will then take -- he will take President Trump, will take to Beijing, and tell him, look, the Japanese and the Koreans are on board, any time (ph)

the China is on board as well on this road map towards pressuring North Korea to give up the nuclear weapons.

LU STOUT: President Moon has been tested by North Korea. He has also been tested by perceived strength of the U.S.-South Korea alliance. You know, it

may be smiles and handshakes in front of the cameras today, but it has been tested by, you know, tweets from Donald Trump on appeasement (INAUDIBLE) to

withdraw from the free trade agreement --

LEE: Right.

LU STOUT: Do you think that drama is over or is the alliance --

LEE: Yes, you know, I think it is. I think it is quite solid because, you know, President Moon came into office in early May. He is the second left

of center president. He's a progressive.

On the other hand, on security and core national security issues, he's moved much more to the center, and I think President Trump having seen with

his eyes what the region really is, in visiting U.S. forces today, for example, he sees that military option could lead to major catastrophic war.

So diplomacy is always the best choice. In that sense, President Moon and President Trump will see eye-to-eye on this particular issue to reaffirm

the alliance. My last point on this, Kristie, is that around the world, 38,000 Americans died here in Korea in the Korean war, and we're the only

ally that has become the fourth largest economy in the world, so this is a crucial, I guess, test (ph) for the alliance, but we are the strongest

partner the U.S. has in Asia.

LU STOUT: That's right. It's a crucial (ph) alliance. Final question for you, about the relationship between Trump and Moon, the personal

relationship. I mean, certainly you haven't had the bromance, the gulf games that we've seen between Trump and Shinzo Abe, but could that change

after this visit?

LEE: Right. I think so. You know, President Moon as I said has been in the office for less than six months. And this is his third meeting with

President Trump. As he gets more comfortable with meeting world leaders in the G20, for example at the APEC meetings that are coming up and so forth,

they will have much more personal time.

And President Moon doesn't play golf, but I'm sure that he has other interests that he can talk with President Trump. Both sides have to face

critical domestic issues as well. I think over time, both Trump and President Moon will develop a much closer personal relationship.

LU STOUT: All right. We will leave it at that. Chung Min Lee, thank you very much for joining us here in the program. Take care.

And while the president continues his Asia tour, back home, two of his former staffers are being investigated for ties to Russia, being asked for

more information before they are freed on bail. They were indicted for money laundering and tax fraud as a part of special counsel investigation.

Jessica Schneider has the details.


JESSICA SCHNEIDER, CNN JUSTICE CORRESPONDENT (voice-over): Paul Manafort and Rick Gates remained under house arrest with GPS monitoring. The judge

determined today their financial disclosures weren't clear and asked for more information before deciding whether to ease the condition of their

release next month.

KATELYN POLANTZ, CNN JUSTICE WRITER: In court, the judge suggested that they could modify the bail for Manafort and Gates, that they would possibly

still wear ankle monitors, they would have to stay near their homes, they would have to do things like not going near airports and railroads and have

an evening curfew.

SCHNEIDER (voice-over): Paul Manafort claims to have a net worth of $28 million, according to court filings, and offered up three of his properties

as collateral for his $10 million bond. But prosecutors said the value of his property and net worth have yet to be substantiated.

Manafort and Gates pleaded not guilty to 12 counts including money laundering and false statements, which stemmed from their work as lobbyist

for a pro-Russian-Ukrainian political party. The charges do not explicitly relate to their work during the campaign. The court appearance comes as new

allegations emerge about that Trump Tower meeting attended by Paul Manafort, Jared Kushner, and Donald Trump Jr. in June 2016.

Russian lawyer Natalia Veselnitskaya led that meeting and now tells Bloomberg News, Trump Jr. indicated the law she was lobbying against might

be reexamined if Trump became president. The 2012 Magnitsky Act imposed sanctions on Russian officials accused of human rights abuses. "Looking

ahead, if we come to power, we can return to this issue and think what to do about it," Veselnitskaya describes Trump Jr. as saying.

Veselnitskaya says Trump Jr. also asked for documents backing her claim that a donor to Hillary Clinton's campaign evaded U.S. taxes. The number of

Trump associates with ties to Russia now stands at 11,

[08:15:00] according to CNN's reporting. Commerce Secretary Wilbur Ross is under scrutiny for his investments in a shipping firm with significant ties

to a Russian company linked to President Putin's inner circle. In an interview with the BBC in London, Ross slammed the suggestion his business

ties constitute anything improper.

WILBUR ROSS, UNITED STATES SECRETARY OF COMMERCE: If our government decided to sanction them, that would be a different story. Our government has not

thus far made the determination to sanction. So there is nothing wrong with it. The fact that it happens to be called a Russian company does not mean

that there's any evil in it. Where there is evil is the misstatement that I did not disclose those holdings in my original form.

SCHNEIDER (voice-over): Although Ross met his disclosure requirements, some lawmakers feel they were misled. They are demanding an investigation and

possible resignation.

SEN. RICHARD BLUMENTHAL (D), CONNECTICUT: He apparently deliberately concealed these ownership interests. There ought to be hearings and if he

fails to survive a convincing and compelling explanation, he ought to resign.

SCHNEIDER: In the Paul Manafort-Rick Gates case, the next court appearance will be on December 11th, and that's when the judge could determine a trial

start date. Right now, It looks like May 7, 2018 could be when the trial gets under way, meaning the Russia investigation will stay in the headlines

just as the mid-term congressional races starts to heat up. Jessica Schneider, CNN, Washington.


LU STOUT: Adding to the intrigue, a key person linked to the Russia investigation has vanished. Joseph Mifsud fits the description of "foreign

contact one" in the FBI affidavit against former Trump campaign advisor George Papadopoulos. The lecturer is suspected of being a link to the

Russian government and was last seen at the University in Rome. The day before he disappeared, he told an Italian magazine the claims by

Papadopoulos were (INAUDIBLE).

You're watching "News Stream." Still ahead, we got the latest on the mass shooting at a small Texas church. The killer's violent past should have

prevented him from buying guns, so how was he able to legally purchase the rifle used to the attack? That story is next.


LU STOUT: Welcome back. This is "News Stream." We are learning disturbing new details about the gunman behind the Texas shooting. While in the Air

Force, he was convicted of assaulting his wife and stepson and spent a year in military prison. Now, that should have disqualified him, but he was

still able to buy a gun. CNN's Dianne Gallagher reports.


DIANNE GALLAGHER, CNN NATIONAL CORRESPONDENT (voice-over): The Air Force admitting that they failed to alert federal authorities about Devon Patrick

Kelley's history of domestic abuse. A mistake that could have

[08:20:00] prevented the killer from purchasing the rifle he used to carry out Sunday's massacre, adding to his arsenal of weapons.

DON CHRISTENSEN, FORMER AIR FORCE CHIEF PROSECUTOR: Somebody really dropped a bomb in this case and there's, you know, 26 dead people now.

GALLAGHER (voice-over): An investigation now underway by the Air Force inspector general as court records offer insight into the shooter's violent

past. Back in 2012, the shooter pleaded guilty to assault in 2011 and 2012 against his first wife and aggravated assault against his infant stepson.

CHRISTENSEN: He would often be physically violent with his son, include violently shaking him. As a result of that, his stepson had suffered

fractures and subdural hematoma.

GALLAGHER (voice-over): Kelley was also charged with pointing loaded and unloaded guns at his wife but those charges were dropped as a result of a

plea agreement. As punishment, Kelley served one year in a military prison and was given a bad conduct discharge from the Air Force in 2014, along

with reduction in rank.

That same year, a neighbor at a Colorado RV Park told police that he saw the shooter beat a dog, allegations Kelley denied before being cited for

animal cruelty. Kelley remarried in 2014. Police say the killer had recently become obsessed with a family dispute and he sent threatening text

messages to his mother-in-law, including the morning of the shooting. She was not in church on Sunday, but another family member was. Kelley's wife's

grandmother, Lula White, was killed in the attack.

FREEMAN MARTIN, REGIONAL DIRECTOR, TEXAS DEPARTMENT OF PUBLIC SAFETY: We can't go into details about that domestic situation that is continuing to

be vetted and thoroughly investigated.

GALLAGHER (voice-over): Joaquin Ramirez and his wife Joanne Solis, witnessed the unspeakable horror first hand. Joanne was shot in the arm.

JOANNE SOLIS, TEXAS SHOOTING SURVIVOR: It was so scary and that man was shooting. I mean, he was shooting hard.

GALLAGHER (voice-over): They say the shooting stopped for a moment as the gunman went aisle to aisle looking for survivors.

SOLIS: I thought he was a police when I saw the feet because everybody got really quiet. And be quiet, everybody was, like, be quiet, that's him,

that's him.

GALLAGHER (voice-over): Ramirez says the killer shot crying babies inside the church pointblank. Stephen Willeford, the local resident who confronted

and chased down the killer after he fled the church recounting his story to CNN affiliate KHBS.

STEPHEN WILLEFORD, CHASED SHOOTING SUSPECT: The people at that church, they were friends of mine. They're family. And every time I heard a shot, I knew

that that probably represented a life. I was scared to death.

GALLAGHER (voice-over): Willeford shot the killer once in the leg and torso before police say Kelley took his own life.

WILLEFORD: I'm no hero. I'm not. I think my God, my Lord, protected me and gave me the skill to do what needed to be done and I just wish I could have

got there faster.

GALLAGHER (voice-over): Scott Holcombe lost eight family members, spanning three generations, telling CNN, he met the killer and he is confident

Kelley knew every person in the church where he carried out the massacre. The tight-knit community coming together Monday to remember the victims,

including the 14-year-old daughter of the church's pastor, who was killed in the attack.

SHERRI POMEROY, DAUGHTER KILLED IN MASSACRE: One thing that gives me a sliver of encouragement is the fact that Belle was surrounded yesterday by

her church family that she loved fiercely.


LU STOUT: Such horrific and needless loss of life. The U.S. president is facing questions on the deadly shooting in Texas. While in South Korea, Mr.

Trump was asked if extreme vetting would have prevented the attack.


TRUMP: There would have been no difference three days ago and you might not have had that very brave person who happened to have a gun or a rifle in

his truck go out and shoot him and hit him and neutralize him. And I can only say this, if he didn't have a gun, instead of having 26 dead, you

would have had hundreds more dead.


LU STOUT: That was President Trump speaking in Seoul earlier today. Turning now to an attack in the Afghan capital.



LU STOUT (voice-over): Several gunmen stormed a TV station in Kabul just a few hours ago, opening fire and throwing grenades. At least one security

guard was killed, five people were wounded. The attackers were killed after holding up police for nearly three hours. ISIS has claimed responsibility.


LU STOUT: Egypt's president Abdel Fattah el-Sisi says that he will not seek a third term in office. In an interview with CNBC, Mr. El-Sisi said through

translator, he does not want to run without the will of the people. CNBC has not made the Arabic tape available, so CNN can't confirm the

translation's accuracy.

[08:25:00] In that same interview, he says he supports the U.S. president.


ABDEL FATTAH EL-SISI, PRESIDENT OF EGYPT (through translator): I see that President Trump is managing foreign policy in our region. Can I say in

short that the United States has regained its weight in the region and is preserving security of the region and its countries. We are completely

supported and cooperative with President Trump on this.


LU STOUT: Egyptian president Abdel Fattah el-Sisi there.

Now, Saudi Arabia's anti-corruption purge is getting a thumbs up from the U.S. president. Donald Trump tweeted that he has great confidence in both

the Saudi king and crown prince, but critics haven't been so kind. They say that the move is a power play by the crown prince. The crackdown comes from

the hills of what Saudi Arabia says was a missile attack from Iranian- backed rebels. Becky Anderson reports.


BECKY ANDERSON, CNN ANCHOR (voice-over): Riyadh is in the middle of a political earthquake. First, an intercepted missile, fired at the capital

by Iranian-backed Houthi rebels in Yemen. Then by the scale and scope of a counter-corruption initiative, announced by King Salman, almost


Eleven princes detained. They are among 38 current and former ministers and deputy minsters arrested. The king's son, the all powerful crown Prince

Mohammed bin Salman warned six months ago that this was coming.

MOHAMMED BIN SALMAN, CROWN PRINCE OF SAUDI ARABIA (through translator): I assure you that no one involved in a corruption case will be spared no

matter if he is a prince or a minister. With enough evidence, anyone will be held accountable.

ANDERSON (voice-over): Over the weekend, a newly formed anti-corruption squad has gone after a number of high-profile princes and businessmen. The

government saying the effort is all in line with the kingdom's plans to diversify the economy and modernize society.

In an exclusive interview, Saudi Arabia's Foreign Minister, Adel al-Jubeir, told me there is a zero tolerance policy in place against graft.

ANDERSON (on camera): Was it just by default that people like Prince Al- Waleed bin Talal who is so well known around the world got caught up in this?

ADEL AL-JUBEIR, FOREIGN MINISTER OF SAUDI ARABIA: I can assure you that the Kingdom of Saudi takes very, very seriously the issue of corruption, waste

and mismanagement. We don't -- we want investors to have confidence in our system. We want companies to know that when they come to compete in Saudi

Arabia, they can compete fair and square with any other company and not be subject to people using their influence or their position in order to

extract better deals.

ANDERSON (voice-over): And while fighting corruption at home, Saudi Arabia also waging war in Yemen. The foreign minister describing a failed

ballistic missile attack on Riyadh's international airport in serious terms.

AL-JUBEIR: We see this as an act of war. Iran cannot lob missiles at Saudi cities and towns and expect us not to take steps. It was an Iranian missile

launched by Hezbollah from territory occupied by the Houthis in Yemen.

ANDERSON (voice-over): While the kingdom is moving swiftly at home and abroad, the world is watching. The young crown prince has reshuffled the

government, promised women they will drive, and rolling out an ambitious employment and diversification agenda.

His critics say he's just making a power play and removing potential rivals from his ascent to the throne. However, according to his supporters, this

is a part of his plan to transform the kingdom. Becky Anderson, CNN, Riyadh.


LU STOUT: You are watching "News Stream." We'll have more on our top story. Mr. Trump's visit to South Korea as well as reaction from Pyongyang after

the brake.


[08:30:00] KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout in Hong Kong. You are watching News Stream and these are your world headlines.


LU STOUT: U.S. President Donald Trump spoke alongside South Korean President, Moon Jae-in in Seoul just hours ago. Front and center, the

North Korean nuclear threat. Now both presidents are calling for greater international pressure on Pyongyang. South Korea is the second stop on Mr.

Trump's tour of Asia.

The man who shot and killed 26 people in Texas spent a year in military prison after being convicted of assaulting his wife. But the Air Force

failed to enter its international database -- a move that could have prevented him from buying a gun.

Authorities in France and Switzerland arrested 10 people in joint anti- terror operation. Some of the raids took place near Paris. The assistant general's office says two of the suspects who were on their radar suspected

of having links to ISIS.

In the Afghan capital Kabul, at least one person was killed when gunmen stormed at television station. The attackers opened fire on staff and held

up police for nearly 3 hours. ISIS has claimed responsibility for providing no evidence who was behind the attack.


LU STOUT: Japan's prime minister has also called for more international pressure on North Korea over its nuclear program. And joint news

conferences, President Trump on Monday mentioned additional sanctions.

We have now learned those sanctions on North Korea will freeze the assets of nine organizations and 26 individuals. President Trump has expressed

full support of Japan in his handling of Pyongyang.

And while Mr. Trump is towards Asia, North Korea is taking an opportunity to ramp up its nuclear rhetoric. Will Ripley is in Pyongyang and CNN is

the only U.S. network in the North Korean Capital right now. Will, joins us live from the North Korean capital.

And, Will, first I want to get you -- your thoughts on what President Trump said today and so, he urged North Korea to come to the table. Is the north

willing to do that and discuss giving up its nuclear arsenal?

WILL RIPLEY, CNN CORRESPONDENT: Yes I'm here. But I can't hear anything over there.

LU STOUT: OK, unfortunately we lost connection there with, Will Ripley, in Pyongyang, such a pitiful. Try to reestablish that for you. Our apologies

for that technically issue there. Now let's go back to President Trump's overall visit to Asia.

After South Korea, we know that he will be heading to China and then to Vietnam, and the onwards to the Philippines. And ahead of his visit, the

Trump administration has been laying out a vision of a free and open Indo- Pacific searching from the U.S. west coast to India.

But why are they calling the region, Indo-Pacific when the U.S. has long called it, Asia-Pacific. Perhaps it's not to India. Now, U.S. Secretary

of State, Rex Tillerson talked about expanding strategic ties with India two weeks ago.

And according to an analyst at the Center for Strategic International Studies, it's actually an idea that Prime Minister Shinzo Abe develops that

Japan was going to anchor it's strategy on India, Australia and the U.S., the big maritime Democracies.

Some say Beijing could easily see the move that the U.S. was trying to contain it in a region that China seizes is falling under its sphere of

influence. Still to come right here on News Stream, the occupant of the White House pays a visit to the Blue House. The story behind the South

Korean presidential residence when we come back.


LU STOUT: Welcome back. Now let's return to North Korea for reaction of President Donald Trump's visit to South Korea. Will Ripley standing by in


Again, CNN is the only U.S. network in the North Korean capital right now. And, Will, Trump is asking North Korea to now come to the table. Is that

something Pyongyang was willing to do to discuss giving up its nukes?

RIPLEY: Hi, Kristie. It sends a very strong message from the North Korean point of view. They feel that given the fact that South Korea and Japan

are both going to be investing billions of dollars in U.S. manufactured weapons and coupled with the fact that there continue to be ongoing

military exercises.

There are exercises involving the U.S., South Korea and Australia that happened over the last couple of days. In the coming days, even larger

Naval drills in the Pacific involving three U.S. aircraft carrier strike groups, the North Koreans feel this only justifies they are -- they are vow

to bolster their own nuclear deterrence as what they call it, against the United States.

And so just speaking with the last couple of hours with North Korean officials here in Pyongyang, they reiterated that they will double down on

their vow to round off their nuclear program and that will mean further tests.

They have threatened in recent weeks, everything from aboveground nuclear detonations to launching couple of missiles toward the U.S. territory of

Guam. Neither of those two events have come to fruition but what the North Koreans have said, is that they will conduct a test of their choosing at a

time of their choosing.

The big question, will it be time to coincide with President Trump's visit here in Asia. And of course, they are going to be listening very closely

tomorrow morning local time when President Trump makes that major speech in South Korea before heading over to China.

We have heard a more conciliatory tone from the president speaking in South Korea, even talking about coming to the table and making a deal with the

North Koreans but the administrations also been hinting about possibly a surprise announcement with the president's speech.

And there's some question here in North Korea whether the Trump administration will decide to put North Korea back on the list of state

sponsors of terrorism, unless that they were taken off of nearly 10 years ago, when there were negotiations that time about North Korea's nuclear


We know how that worked out. North Korea now has a bigger nuclear arsenal than ever. They are still continuing to develop and perfect their missile

capabilities but they say they are very close to having that intercontinental ballistic missile that could hit the mainland United


And while words from the president do matter, they see the actions of the U.S. and its allies also matters. So when you are looking at weapons

purchases and military drills, the North Korean say it just might be the right time for them to send a very strong message of their own. Kristie.

LU STOUT: All right, Will Ripley, reporting live for us from Pyongyang inside North Korea. Thank you. Now, as you heard earlier, the occupant of

the White House is now in South Korea and just a few hours ago, he paid a visit to the Blue House.

Now that is the official residence of the South Korean president. You see here, is actually name for the color of its exterior. Its Korean name

literally translates to Pavilion of Blue Tile. According to the South Korean towards some organization, that roof is made of some 150,000 blue


And finally, for many, beer is the go to alcoholic drink of choice to accompany Indian food but there is a new trends emerging out of one of the

holiest places in India. We'll take you to one central Indian city that's become the capital of the new country's new wine industry.


[08:40:00] UNIDENTIFIED MALE: Not because of very rich history, it's considered to be the place (Inaudible) wondered during his years of exile

but the auctions were churned and some of the mythical mixture fall so mild, sombrous draft.

And that's very apt(ph) because Nashik of Indian wine. India had a tradition of wine 500 years ago under the British, India became a spirit

and beyond drinking country. And now wine is making a comeback.

And it's just taking off. It just been 15 years since Sula came in existence. Our wines are exported to 25 countries and Indian wines are

being tasted more and more abroad. They are no longer a novelty item.

UNIDENTIFIED MALE: Hi, my name is (Inaudible). I'm head wine maker at Sula Vineyard in India, Nashik. And let's go for the (Inaudible). Its way

here that you now can procure and demodulate them it a barrel row where we have 1,300 barrel oak in wine, its matter made in heaven.

The oak just lift up the wines and makes it richer, every wine in barrel is a little bit like slow cooking and you just to keep tasting, this is the

way it's done. It's really of open art and the science.

So we are here at the dislodging line where we have our next freezer which is at minus 25 degrees. Make sure there the yeast in the bottle is frozen

and it forms an ice plug that some (Inaudible).

From this bottling line, we can dislodged about 2,400 bottles a day and after they have been dislodged, and they go, the wine here goes forward,

the bottles are cleaned up, and then they come out in automatic fields.

India is so ready for wine. There is really a misconception that Indian food does not go well with wine. It's less than one percent of all

alcoholic beverages consumed in India but it's growing much, much faster than any other Alphabet and it's going to be a very significant beverage in

the years to come.


LU STOUT: And that is News Stream. I'm Kristie Lu Stout but don't go anywhere, World Sport with Alex Thomas is next.