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Bullish On Trade Talks - President Donald Trump Suggests The U.S. And China May Be Close To A Big Deal, But Beijing Is A Bit More Cautious; Another In Democrat Joins The Fray -Senator Cory Booker Announces He's Jumping Into The 2020 Race For The White House; An Award-Winning Author, While Also A Refugee Stuck On Manus Island; Mike Pompeo Has Announced The U.S. Withdrawal From The INF Nuclear Treaty. Aired: 8-9a ET

Aired February 1, 2019 - 08:00   ET

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


KRISTIE LU STOUT, HOST, "NEWS STREAM": I'm Kristie Lu Stout in Hong Kong and welcome to "News Stream." Bullish on trade talks - President Donald

Trump suggests the U.S. and China may be close to a big deal, but Beijing is a bit more cautious. Another in Democrat joins the fray -Senator Cory

Booker announces he's jumping into the 2020 race for the White House. And an award-winning author, while also a refugee stuck on Manus Island. We

speak with Kurdish-Iranian, Behrouz Boochani.

And let's begin with a fairly optimistic assessment from the U.S. President about the prospects of a deal with China to end the trade war. Donald

Trump says he thinks he will be able to strike a, quote, "very big trade deal with China by his March 1st deadline," but he also says nothing will

be final until he meets with his Chinese counterpart, Xi Jinping.

Meanwhile, sources tell CNN that Mr. Trump and the North Korean leader, Kim Jong-un are planning to meet in Vietnam in late February for their second

summit.

Our reporters are covering this from every angle. We have Matt Rivers in Beijing, Paula Hancocks joins us from Seoul, Joe Johns in Washington, but

Matt, let's go to you first. We know that Donald Trump, he's very confident of getting a big deal with China, he wants a face-to-face meeting

to seal the deal with Xi Jinping, what do the Chinese want?

MATT RIVERS, CORRESPONDENT, CNN: Well, the Chinese certainly want a deal. I think the fact that, for instance, Kristie, you saw the Chinese

delegation not let the indictments that the U.S. brought against Chinese tech giant, Huawei derail these talks shows you how much China wants a

deal.

But the question is exactly, what deal is going to happen by March 1st, if indeed a deal is going to happen. What you heard from the President is

that he wants to sign a complete deal, which would of course include everything that the U.S. wants -- the big structural changes to China's

economy -- not only intellectual property theft protection, but also stopping forced technology transfers, ending preferential subsidies for

Chinese-state owned businesses, increasing market access for American companies.

These are huge demands that have taken a long time to get to this point, and have also really been the sticking point between the U.S. and China for

a while. He also wants to meet with Xi Jinping, and there's no plans, according to U.S. official, at least as of now, for them to meet by March

1st. So it's really unclear exactly what's going to happen.

Some U.S. officials have floated to CNN that there could be some sort of smaller agreement in place, perhaps China agreeing to buy more American

imports and also providing a little bit more market access and that kind of prevents the tariffs from being increased on March 1st.

So really, we're not sure exactly what's going to happen over the next couple of weeks, but we do know that an American delegation is coming here

the week after next. Of course, next week is Chinese New Year here in China, but the week after next, we'll see an official delegation here in

Beijing to continue talks.

LU STOUT: All right, as we look forward to that potential meeting, another one between Donald Trump and Xi Jinping, let's go to Paula now. Paula,

we're learning more details about the next meeting between Donald Trump and Kim Jong-unto take place at the end of the month, but where?

PAULA HANCOCKS, CORRESPONDENT, CNN: Well, Kristie, we have been hearing from a senior Trump administration official and a second source familiar

with the issue that it is likely to be in Danang. This is coastal city in Vietnam, and we've heard from the U.S. President Donald Trump himself, as

well talking to reporters saying it's really no secret where this summit is going to be. I think you all know.

So Vietnam has been the front-runner, all along, really. So, I think it's a safe bet that it could well be there. Although we are being told by

these sources that the plans have not been finalized up until this point. But Mr. Trump said it would be the end of February. He is expecting to be

able to announce something early next week, he says, potentially, around the State of the Union.

We also heard some interesting points as well from the U.S. Special Envoy to North Korea, Stephen Biegun, he had a speech at Stanford University on

Thursday and he gave more clarification as to what we may be able to expect at this summit.

He did say that the President is ready to declare an end to the Korean War, or at least as clearly as he could say that, saying that they had no plans

to invade North Korea. They have no desire to topple the regime in North Korea, and it was time to end the war.

Now, this is a key demand from North Korea. They have consistently wanted an end to the Korean War. It only ended in an armistice back in 1953. So

that gives us some indication that there may be movement. We may actually see something a little more concrete after this summit, Kristie.

[08:05:02]

LU STOUT: Got it, Paula. So let's go to Joe now from the White House. And Joe, as we heard from Paula and from Matt, President Trump, he's got a

pretty busy schedule ahead of him happening here in Asia. Will he likely meet Xi Jinping around the time of the next Trump-Kim Summit?

JOE JOHNS, SENIOR WASHINGTON CORRESPONDENT, CNN: It's just not clear. What we are hearing is that at this time, there are no plans for the

President to meet President Xi. It does not seem like they're talking about it much, at least so far. But we do know that the relationship

between the United States and China has been playing in the background constantly here, especially because of so many of the trade issues. We're

just going to have to say, we have to get back to you on that question.

LU STOUT: Okay, got it. Paula Hancocks joining us live from Seoul, along with Matt Rivers live in Beijing. Joe, stick around, we are going to be

talking with you very, very soon.

Now, the U.S. President has also been talking about immigration and suggesting that it is likely he will declare a national emergency in order

to build a border wall without Congressional consent.

In an interview with "The New York Times," Mr. Trump called ongoing negotiations on Capitol Hill, quote, "a waste of time." And he singled out

Nancy Pelosi for harsh criticism. So let's take it back to Joe Johns.

And Joe, President Trump in this interview, he says border wall talks, they were a waste of time. Is he just going to go ahead and unilaterally get

his wall?

JOHNS: It certainly sounds like the President is planning to go ahead, and as you say, unilaterally get his wall, indicating that he would like to

wait at least until the conversation is at an end on Capitol Hill - that would be around February 15th or so. After that, the President suggests

that he's going to go ahead and do it.

Of course, there is a report out by the Congressional Research Service here, highly respected, suggesting the President can either declare an

emergency and move forward in that way, which would be subject to numerous court challenges, or he can even take some money from different pots, just

by simply saying there is a national security concern or there are concerns about drugs, and start building his wall that way.

The President apparently has a couple of different options, and not all of them require declaring an emergency, Kristie.

LU STOUT: And also, Joe, before you go, we know that that spat earlier this week between Donald Trump and his Intelligence chiefs, he lashed out

at them, after they appeared to be contradicting him in terms of policy. Have they made up? Where does that stand now?

JOHNS: It certainly sounds like they have made up. The President has tweeted of late, that in fact, his National Security chiefs, his

Intelligence chiefs, if you will, were misquoted or at least taken out of context, if you will suggesting that a broader reading of all of the

remarks indicated that they were much more on the same page on some of the key hot spots around the world, than the President might have thought when

he saw sound bites on television.

And our reporting as he was also concerned about the chyrons - the words that go underneath individuals while their sound bites are playing on

television. The President indicating that they're on the same page and trying to put it to rest.

LU STOUT: And also, another takeaway from "The New York Times" interview that President Trump conducted overnight, what more did he say about the

ongoing Russia investigation that really has been casting a shadow on his presidency?

JOHNS: Well, he made it pretty clear among other things that he had not talked to some key individuals about some of the most important headlines

there in the news, especially Roger Stone, his longtime ally, and just indicating that the President very much wants to see this investigation at

an end. Probably importantly, suggesting that he has been told by none other than Rod Rosenstein, the Deputy Attorney General that he is not a

subject or a target of any investigation.

That is important, certainly, in terms of prosecution. But even if that's the case, when a report from Robert Mueller and the Russia investigation

gets to Capitol Hill, that doesn't preclude the possibility of Members of Congress on the House side, trying to draw up Articles of Impeachment,

based on the conduct that is alleged by the Russia investigation team.

LU STOUT: Joe, never an uninteresting day at the White House. Joe Johns reporting live for us. Thank you so much, sir. Take care.

Turning now to Venezuela where people are waking up to another day in a deeply divided nation and claims by Venezuela's self-declared leader that

his family has been threatened by Special Forces loyal to the sitting President, Nicolas Maduro.

With his family at his side, Juan Guaido, said on Thursday that agents from a special police unit showed up at his apartment to try to intimidate him.

Now, Guaido is not ruling out possible U.S. military intervention in Venezuela and adds he hopes it does not come to that.

In an interview with CNN's Christiane Amanpour, he also repeated his offer of amnesty to the Venezuelan military.

[08:10:10]

(BEGIN VIDEO CLIP)

JUAN GUIADO, SELF-DECLARED ACTING PRESIDENT OF VENEZUELA (Through a translator): We have decreed amnesty and guarantees of law to all

citizens, officials in military that side with the Constitution. It an incentive not only to the Armed Forces, but also for example, to the

Consular officials of the usurper, Maduro, who has asked them to leave their posts, and who instead remain in their posts exercising their duties.

(END VIDEO CLIP)

LU STOUT: Nick Paton Walsh has been following the ongoing crisis in Venezuela from neighboring Colombia. He joins us now live from Bogota.

Nick, good to see you. Let's talk about Venezuela's military. In other words, officers, its soldiers, Special Forces, where do their allegiances

lie?

NICK PATON WALSH, SENIOR INTERNATIONAL CORRESPONDENT, CNN: Well, they're clearly backing Nicolas Maduro at the moment, and from speaking to rank and

file soldiers, they suffer like every Venezuelan from hyperinflation, extreme hunger, lack of food, rocketing food prices, difficulties to get

basic substance all the way through their daily life. It's the military elite - the generals - who seems to still be profiting from the Maduro

government.

Now, that may change as the amounts of money available to the Maduro government begin to reduce owing to sanctions, and Juan Guaido has made

repeated appeals, he says, to those military elite to change sides, even claiming he has met with -- I should point out, one, he hasn't ruled out

the idea of U.S. military intervention. He has also said this frankly, the last thing he would like to see happen.

I think it's fair to say, I think most Venezuelans don't want to see this turn into any kind of military conflict. Their country is in crisis enough

as it is, but you also mentioned the seeming police Special Forces intervention into his home. We haven't seen pictures of that. We have his

word for it, and he initially said, they seemed to have gone into his house near his daughter and his daughter's grandmother.

It later transpired, perhaps it may have been the neighborhood, but still U.S. officials have leapt forward saying that those behind that would be

held accountable for it. They didn't say how. And they've also gone on to suggest that potentially, in the last few days, we've seen quote "last

minute looting of Venezuela's gold reserves." Talking about reports - unconfirmed reports that perhaps gold is being flown abroad and sold on the

open market to boost the Maduro government's cash supply.

Continued Washington rhetoric here, trying to keep the idea of Juan Guaido as a functional President inside the country afloat. He is the interim

President. He's declared himself that. He's very much a popular opposition figure, but his hands are certainly not on the levers of power.

All eyes really on tomorrow's protests, how big will they be, and will they change the mind of those around Maduro -- Kristie?

LU STOUT: All eyes on tomorrow's protest. Also, I wanted to get your thoughts on that announcement that came out yesterday. The European

Parliament voting to recognize Juan Guiado as the interim President. Does that necessarily mean that E.U. member states will follow suit with either

political recognition or sanctions?

PATON WALSH: That's possible. Quite a few have already given recognition of Guaido. The international community, for the last part, with the

exception of Russia, China, Cuba and a few other regional players here are recognizing Juan Guaido as the interim President. They want fresh

elections, too, to confirm that. He is a transitional figure, but the really important point to point out here is that while the United States is

saying it's going to give Juan Guaido access (audio gap).

He is an interim President recognized by international partners and neighbors of Venezuela, in name alone. He is a figure of hope. He is a

man leading protests forward, but you have to remember that he doesn't actually control much of the government at this point. It's still Nicolas

Maduro pulling the levers of power that may begin to change, but it's important frankly for Juan Guaido status as this opposition figure and

internationally recognized interim President by a large number of nations, that he needs to exercise power at some point soon -- Kristie.

LU STOUT: Right, got it Nick. Nick Paton Walsh, we're getting some hits on your line just then, but I got your full analysis nearing the end there.

Nick Paton Walsh reporting live for us from Bogota, thank you so much.

You're watching "News Stream." And still to come right here on the program, protesters in Australia, they are demanding the release of

Bahraini footballer, Hakeem al Araibi. Ahead, he speaks to CNN from a Thai prison. Hear what he has to say. Plus, literary critics called his book,

a voice of a witness, an act of survival. I speak to journalist, Behrouz Boochani from his detention camp on Manus Island. Keep it here.

(COMMERCIAL BREAK)

[08:15:00]

LU STOUT: It's Friday night here in Hong Kong, welcome back. This is "News Stream." Quote, "please fight for me." Those are the exact words

Bahraini footballer, Hakeem al Araibi told CNN while detained in a Thai prison. Al Araibi who holds refugee status in Australia is fighting

extradition back to Bahrain. He was arrested in Bangkok in November last year while on a honeymoon with his wife.

A global campaign to secure his release is ongoing. In Melbourne and Sydney this day, supporters held protests demanding his freedom. Al

Araibi's lawyer told CNN that the professional footballer is due to appear in court on Monday, and will be asked whether he wants to challenge the

extradition request by Bahrain.

If taken back to his home country, rights group say that al Araibi could face imprisonment and torture.

Now, this book written by Kurdish-Iranian journalist, Behrouz Boochani won two of Australia's richest literary prices, worth around $90,000.00.

Instead of celebrating, Boochani received the news in a detention camp in Manus Island. He has been there since 2013 detained for trying to enter

Australia without a valid visa, and while there, Boochani wrote the entire book using only his cell phone and sent it to his publisher via text

message.

(BEGIN VIDEO CLIP)

BEHROUZ BOOCHANI, KURDISH-IRANIAN JOURNALIST DETAINED IN MANUS ISLAND: Literature has the power to give us freedom. Yes. It is true. I have

been in a cage for years, but throughout this time, my mind has always been producing words and these words have taken me across borders, taken me

overseas and to unknown places.

I truly believe words are more powerful than the fences of this place - this prison.

(END VIDEO CLIP)

LU STOUT: And Behrouz Boochani joins us on the phone from Manus Island. And Behrouz, thank you for joining us and congratulations. This is an

incredible achievement. How do you feel about the prize and about this moment?

BOOCHANI (via phone): Yes, thank you very much for having me. Actually, honestly, I feel sad, deeply sad, because when I hear about the award and

when they announced the award, you know, I imagine -- I remember those innocent people who died and were killed by this cruel policy by this cruel

government over the past six years on Manus Island.

Also, I am living with a hundred people who are suffering. Still, we are in limbo. Still, we are - we are kept by this government. This fascist

government, I use this word - the right word - this really fascist government, so we are suffering.

But in the other side, I think this is a great and huge achievement for me, for the refugees on Manus Island ...

[08:20:10]

BOOCHANI (via phone): ... and Nauru Island.

LU STOUT: Behrouz, you write about the refugee experience on Manus Island in your novel which is well over 300-pages long. How did you write it?

BOOCHANI: I can say that it is the result of five years thinking deeply about this system and this prison camp. So I wrote this book, all of this

book in my WhatsApp because WhatsApp is like my office, and at that time, when I was making this book, unfortunately, the guards used to attack our

rooms and take our properties and search our properties.

So, each week, or each two weeks, they suddenly attack us. So, that's why I was worried that if I would write this book on paper, that my work and

that's why I decided to write it on my phone and send it out text by text and bit by bit, to my translator. They took my phone twice and I had to

smuggle another phone to the prison.

So it was actually quite a strange process, but very hard, and with a long process, but I am happy that finally this book came out, you know, people

can read it.

LU STOUT: There is - I wanted you to read a passage from your novel, but you can't. You don't have a copy of your own book while in detention there

on Manus Island. So, if I may, I'm going to quote from your book. You write this, quote, "One month has passed since I was exiled to Manus. I am

a piece of meat thrown into an unknown land. A prison of filth and heat. I dwell among a sea of people with faces stained and shaped by anger.

Faces scarred with hostility."

Behrouz, your words are both brutal and beautiful. Why did you write this?

BOOCHANI: The main reason I wrote this book, I wrote it to tell the tragic story with people, with readers around the world.

LU STOUT: Despite winning this award and the prize money, you're not going to be able to leave the island, is that right?

BOOCHANI: Just imagine if I would have $10 million, I could now leave this island and go somewhere because the government doesn't allow us to leave.

What I think and I expect that this book, you know focuses on our situation and creates some change.

LU STOUT: Literature does have power. We thank you for sharing your story with the world. Behrouz, take care and congratulations.

Now, this just in, another Democrat has just announced plans to challenge Donald Trump in the 2020 presidential election. U.S. Senator Cory Booker

made it official in a video released on the first day of Black History Month. Booker is the second African-American senator to announce his

candidacy following California's Kamala Harris, and he joins an already crowded race.

Before entering the Senate, Booker was the Mayor of Newark, New Jersey. CNN political reporter Rebecca Buck joins us from Newark and Rebecca, it

all begins today for Cory Booker. Tell us more about him internationally. He is known as a U.S. senator, but tell us about his background and why he

says he is running for President.

REBECCA BUCK, POLITICAL REPORTER, CNN: That's right, well, he started his career right here in Newark, as a mayor. Well, first on the city council,

then became a mayor, and really created a national profile as mayor.

He was charismatic, very talented. Tweeted at his constituents, really broke the mold for a mayor in Newark which is a very troubled impoverished

city, and he brought it back, or at least started to bring it back as mayor. And so that is where Cory Booker's store begins.

Now, we know what the next chapter will look like. He is running for President of the United States in as you said, a very crowded Democratic

field. The question is how will he set himself apart? And as you mentioned, he's one of two African-American candidates running in this

race. That is the story and a feature of his story that he is going to play up in this campaign.

As evidenced by the timing of his announcement today on the first day of Black History Month, and some of the visuals in a video he released today,

really harkening to that African-American voter who might be looking at Cory Booker, but also with a very upbeat sort of young take. I want you to

take a look at some of his announcement video.

(BEGIN VIDEO CLIP)

CORY BOOKER, U.S. SENATOR, NEW JERSEY, DEMOCRAT: It's a matter of do we have the collective will? The American will? I believe we do. Together,

we will channel our common pain back into our common purpose. Together, America, we will rise.

I'm Cory Booker and I'm running for President of the United States of America.

[08:25:12]

(END VIDEO CLIP)

BUCK: So, again, a very upbeat, optimistic message from Cory Booker in that video. A really unique video, when you look at how other candidates

have announced for President in the past.

But really, an interesting approach from Cory Booker, setting himself apart from the rest of the field, not only as an African-American candidate.

Also he mentions in this video, he is the only senator who lives in an inner city, Newark, New Jersey, in an impoverished neighborhood, and he is

the youngest senator who will be running for President.

So possibly looking to appeal to millennial voters, younger voters relative to some of his competitors in this race.

LU STOUT: Yes, for all the reasons you laid out, Rebecca, an unconventional candidate, and an unconventional political campaign ad that

you shared with us just now. Rebecca Buck reporting live for us in Newark, New Jersey. Thank you very much, indeed.

Now, the death of an elderly woman in South Korea again is signing a light on a shameful past. Her name Kim Bok-dong. She was one of thousands of

Korean women who were held as sex slaves by the Japanese military during the Second World War. She passed away on Tuesday. Her funeral was held

earlier today, and Paula Hancocks was there.

(BEGIN VIDEO TAPE)

HANCOCKS (voice over): A final farewell to one of South Korea's best known activists, Kim Bok-dong, the so-called comfort woman or sex slave for the

Japanese military before and during World War II. Hundreds joined the funeral procession in downtown Seoul, braving subzero temperatures to say

good-bye to one of the most vocal critics of Japan.

HANCOCKS (on camera): This is where you would find Kim Bok-dong most Wednesdays for the past 27 years. She was at the heart of the weekly

protests just outside the Japanese Embassy here in Seoul.

The only thing that stopped her coming was her failing health.

HANCOCKS (voice over): Kim was a beloved leader of a protest movement that wants a more formal apology and reparations from Japan. Japan says the

issue has been resolved by previous apologies and agreements.

The head of the activist group for comfort women said "Kim taught us lessons about what peace is, what human rights are, and what it is to hug

the weak and the injured." Kim said she was forcibly sent away from Korea at the age of 14. She sought to work in a factory. She says she then

spent eight years in half a dozen countries as a Japanese military sex slave.

(BEGIN VIDEO CLIP)

KIM BOK-DONG, "COMFORT WOMAN" (Through a translator): I can't put into words the scars it left me with. It still keeps me awake at night.

(END VIDEO CLIP)

HANCOCKS (voice over): Kim traveled the world to tell her story, including to Japan. When the Pope visited South Korea, Kim was invited to attend his

mass. She says her experiences ruined her life and her chance of having a child.

(BEGIN VIDEO CLIP)

KIM BOK-DONG (Through a translator): Before I die, I want them to admit that they have done wrong.

(END VIDEO CLIP)

HANCOCKS (voice over): Japanese Prime Ministers have apologized in the past although some ultra conservatives claim the women worked voluntarily

for money. A landmark deal was struck in 2015. Japan again apologized and pledged more than $8 million for a fund to support the surviving comfort

women, but the deal was rejected by the women who say they weren't consulted.

South Korean President Moon Jae-in supported their stance when he took office two years later. Visiting Kim Bok-dong in a hospital last year, and

paying his respects at the funeral home this week.

Kim's passing at the age of 92 comes at a time when relations between South Korea and Japan are more frayed than usual. With just 23 known comfort

women still alive, there are fears this element of the two countries fractious history may not be resolved before all living victims are gone.

Paula Hancocks, CNN, Seoul.

(END VIDEO TAPE)

LU STOUT: You're watching "News Stream," and we are awaiting a live statement from the U.S. Secretary of State Mike Pompeo. The United States

is set to drop a decades-old nuclear treaty with Russia, why it wants out in just a moment.

(COMMERCIAL BREAK)

[08:30:12]

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching "News Stream" and these are the world headlines. Venezuela's opposition leader

says his family has been targeted by forces loyal to sitting President, Nicolas Maduro. Juan Guaido said Thursday that agents went to his

apartment to try to intimidate him. Guaido has declared himself acting President triggering a political showdown with Maduro.

Sources tell CNN that the leaders of the U.S. and North Korea are planning to meet in Vietnam later this month for a second summit. Those sources say

Donald Trump and Kim Jong-un are set to hold talks in the coastal city of Danang.

The U.S. President says he thinks Washington will be able to strike a quote, "very big trade deal" with China by his March 1st deadline, but

Donald Trump also said nothing will be final until he meets with his Chinese counterpart, Xi Jinping. If a deal is not reached in time, the

U.S. plans to increase tariffs on Chinese imports.

Now, any moment now, America's top diplomat is due to announce an anticipated change in policy, a change not seen since the Cold War. You're

looking at live pictures there on your screen from the U.S. State Department. Sources say that the United States is, under the Trump

administration, pulling out of an arms control treaty with Russia. And it would start a 180-day countdown to complete withdrawal. But critics swore

that that will leave the world a much more dangerous place.

Our CNN's Fred Pleitgen reports from Moscow.

(BEGIN VIDEO CLIP)

FREDERIK PLEITGEN, SENIOR INTERNATIONAL CORRESPONDENT, CNN (voice over): After more than 30 years, the U.S. is set to pull out of a milestone

nuclear disarmament agreement -- the treaty on Intermediate Range Nuclear Forces or INF. Washington saying Russia is cheating.

(BEGIN VIDEO CLIP)

MIKE POMPEO, U.S. STATE SECRETARY: We either bury our head in the sand or we take common sense action in response to Russia's flagrant disregard for

the expressed terms of the INF Treaty.

(END VIDEO CLIP)

PLEITGEN (voice over): And this is the missile system that the U.S. says violates the INF, the nuclear capable 9M729. America says it falls within

the prohibited range of between 500 kilometers and 5,000 kilometers and must be destroyed if Russia wants to save the INF Treaty.

Moscow denies the allegations and claims the U.S. is the one breaching the deal. Russia's army even putting on a briefing displaying 9M729 system and

claiming its range is within the limits of the INF.

(BEGIN VIDEO CLIP)

MIKHAIL MATVEEVSKY, LIEUTENANT GENERAL, RUSSIAN ARMY (Through a translator): Russia has implemented and continues to meticulously

implement the requirements of the treaty and does not allow for any violations to happen.

(END VIDEO CLIP)

PLEITGEN (voice over): But journalists were only able to see the launch vehicle and container, not the actual missiles.

PLEITGEN (on camera): The Russians are saying, the reason why this rocket is longer than its predecessor is not because they've increased the range,

but simply because they increased the size of the warhead which would be approximately right here in the container.

PLEITGEN (voice over): The INF Treaty was signed in 1997 by President Ronald Reagan and Soviet leader, Mikhail Gorbachev, aiming to eliminate

land-based medium range nukes.

Today, both Russia and the U.S. view the treaty as largely obsolete, because it constrains the two while non-signatories like China are free to

field medium range nuclear weapons.

Moscow claims it wants to try and turn the INF into --

LU STOUT: Let's take you straight to the U.S. State Department, Mike Pompeo is speaking now. Let's listen in.

POMPEO: ... consideration, the agreements to which we enter must serve American interests and countries must be held accountable when they break

the rules.

[08:35:04]

POMPEO: For years, Russia has violated the terms of Intermediate Range Nuclear Forces Treaty without remorse. To this day, Russia remains in

material breach of its treaty obligations not to produce, possess or flight test a ground-launched an intermediate range cruise missile system within a

range between 500 and 5,500 kilometers.

In spite of this violation, for almost six years, the United States has gone to tremendous lengths to preserve this agreement and to ensure

security for our people, our allies and our partners.

We have raised Russia's noncompliance with Russian officials including at the highest levels of government more than 30 times. Yet Russia continues

to deny that its missile system is noncompliant and violates the treaty.

Russia's violation puts millions of Europeans and Americans at greater risk. It aims to put the United States at a military disadvantage and it

undercut the chances of moving our bilateral relationship in a better direction.

It is our duty to respond appropriately. When an agreement is so brazenly disregarded and our security is so openly threatened, we must respond. We

did that last December when the United States with strong support from all of our NATO allies, formally declared Russia in material breach of the

treaty.

I also then provided notice that unless Russia return to full and verifiable compliance within 60 days, we will suspend our obligation under

that treaty. We've provided Russia an ample window of time to mend its ways and for Russia to honor its commitment.

Tomorrow, that time runs out. Russia has refused to take any steps to return real and verifiable compliance over these 60 days. The United

States will, therefore, suspend its obligations under the INF Treaty effective February 2nd.

We will provide Russia and the other treaty parties with formal notice that the United States is withdrawing from the INF Treaty effective in six

months, pursuant to Article 15 of the treaty.

Russia has jeopardized the United States' security interest and we can no longer be restricted by the treaty while Russia shamelessly violates it.

If Russia does not return to fall in verifiable compliance with the treaty within this six-month period by verifiably destroying its INF violating

missiles, their launchers and associated equipment, the treaty will terminate.

Before close, I want to give a special thanks to our NATO allies who have stood with us in our mission to uphold the rule of law and protect our

people. Their solidarity reflects the historical strength and unity of the NATO alliance. Their support is good for our shared security. It's good

for transatlantic unity, and it's good for international peace and security. President Trump is grateful for all that you have done.

The United States is hopeful that we can put our relationship with Russia back on a better footing, but the onus is on Russia to change course from a

pattern of destabilizing activity, not just on this issue, but on many others as well.

The United States stands ready to engage with Russia on arms control negotiations that advance U.S. and allied and partner security and are

verifiable and enforceable. It must also include all of the partners. They must all responsibly comply with their obligations.

As we remain hopeful of a fundamental shift in Russia's posture, the United States will continue to do what is best for our people and those of our

allies. I'm happy to take a couple of questions this morning.

UNIDENTIFIED MALE: Reuters, Leslie Wroughton.

LESLIE WROUGHTON, REUTERS: Thank you good morning, Mr. Secretary. Mr. Secretary, one of the big things that everyone is worried about that this

could eventually spark an arms race. What are you doing to prevent that? How concerned are you that Russia will not engage in that six months and

that it could see U.S. posture as a threat and take it on?

POMPEO: Well, the very risk that you identified is the very one that we are suffering from today. The Russians are in violation of their

agreement. That is their commitment, this agreement, that's been in place for an awfully long time.

The Russians has been violating it. That is they have begun to move towards what it is that risk that you actually have just identified, you

heard me this morning, we will continue to have conversations with them. We hope they'll come back into compliance. We've had conversations at

every level, at the senior levels, at technical levels, conversations about the nature of the systems.

There's no mistaking that the Russians have chosen to not comply with this treaty and present the risk of continued arms growth in a way that they had

committed to back when they signed this treaty that they would not do. And if you have just one party do a treaty, complying you're down the path that

you described.

We will continue to work with the Russians to achieve an outcome that gets us to a place. President Trump very much wants to have an agreement that

is verifiable and enforceable on these systems.

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POMPEO: And I we hope we can convince the Russians, it's within their best interest as well. We certainly think that it is.

UNIDENTIFIED MALE: One more question, Michael Gordon "Wall Street Journal."

MICHAEL GORDON, WALL STREET JOURNAL: Sir, the Trump administration has withdrawn from agreements it doesn't like, JCPOA, and now you've indicated

your intentions on INF, because of the Russian alleged violation. But the question is whether what new agreements can be worked out to take their

place.

The Russians have said they're prepared to discuss a new start extension. The Treaty expires in two years which is not a lot of time if the

administration plans to take a new approach. When will the United States be prepared to discuss the future of strategic arms control? And what is

your vision of how to go about eliminating or reducing the world's most dangerous arms?

POMPEO: Yes, these are incredibly important questions. I would wager to say that President Trump has put this risk of proliferation as his highest

American national security interest. We're endeavoring to do everything we can to ensure that the risk of proliferation increase in these massively

destructive weapons systems is diminished.

But it does no good to sign an agreement if a party is not going to comply with it. The piece of paper, if it's not being complied with doesn't

reduce the risk. It doesn't take down that threat. The people around the world, the INF document is being violated by the Russians. That is the

very agreement that they signed up for. We didn't force them into the agreement. They decided this was in their best interest. They've now

decided it's not in their best interest to comply with that agreement.

So we're we are prepared to enter into negotiations on these complex arms control issues all the around the world including conversations about the

renewal of other arms control agreements as we move forward, but make no mistake about President Trump's mission set.

President Trump's mission set is to make sure that any agreement that we entered into has America's best interests, that is it protects the American

people, it protects our around the world as well and has provisions that other countries are both capable and willing to comply with and allow us to

verify that they have complied with those agreements.

Absent that, it's just sitting around the table talking. It is incredibly important that we make sure that the provisions of this agreements are

enforceable and verifiable. And that's our aim. That's our aim in every set of important arms control discussions that this administration will

engage in.

Thank you, all, have a great day. Thanks, everybody.

LU STOUT: All right, speaking live from the State Department there in Washington, D.C., that was the U.S. Secretary of State Mike Pompeo. As

expected, he announced that the United States is pulling out of the INF, a decades-old nuclear treaty with Russia. Now, let's get reaction from

Moscow.

Let's bring in Matthew Chance. And Matthew, Russia has been anticipating this. It was last year when President Trump said he was going to do this,

pull out of the INF. So when Mike Pompeo says the onus is on Russia, what is Russia's response?

MATTHEW CHANCE, SENIOR INTERNATIONAL CORRESPONDENT, CNN: You're right. They've been anticipating this announcement. They're expecting a formal

decision, or, rather, a formal notification to be delivered to them as Secretary Pompeo just said on February 2nd.

But they've already made their position quite clear, which is that they reject this idea that they've been in violation of this Cold War era

treaty, but the latest statement we've had from the Kremlin says, look, the United States is not prepared to hear any of our arguments, and I am

slightly paraphrasing what they say, indicating to us at the Kremlin, that the decision to break this treaty is the phrase they used was taken in

Washington a long time ago.

So the suggestion from Moscow is that look, they're saying this, they're saying that the Russians have violated this. That's why they're pulling

out of the treaty, but the suspicion in Moscow is, you know, that was a decision to pull out this arms control deal that was taken for unrelated

reasons some time ago by the administration in Moscow and in fact, one of the ideas talks about quite openly here, and I'm sure elsewhere as well is

that one of the big concerns that the United States has, isn't so much the Russian arsenal. It's the Chinese arsenal.

The Chinese of course are not signatories to the INF and have been free to develop these intermediate range weapons as much as they like, and they've

been doing so sort of prolifically.

LU STOUT: Got it, so there in Russia, people are questioning the motivation behind this U.S. move. You heard that follow-up by one of the

reporters after Secretary Pompeo spoke about concerns about an arms race.

We know that even Mikhail Gorbachev spoke earlier about this before the announcement, but when it was announced that trump was planning to do this,

to dump this nuclear treaty, this is a treaty that Gorbachev signed with Ronald Reagan back in 1987. Could you remind us what he said about all of

this?

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CHANCE: Yes, I mean, you're right. He was the Soviet leader at the time that this kind of landmark arms control agreement was signed. It was his

signature on the document. And he has been lamenting the fact that this and other arms control treaties that he brokered with his U.S. counterparts

have fallen by the wayside.

I mean, he spoke about this latest decision by the United States to pull out of the INF Treaty, this Intermediate Range Nuclear Forces Treaty, as I

am quoting here, "a declaration of a new arms race."

I mean, he wrote that phrase in a column, an op-ed he did for "The New York Times" some months ago. And so, Mikhail Gorbachev, the former Soviet

leader, very regretful that this is happening. But he says, look, there is still hope. We shouldn't give up, neither the Russians nor the other

people on the other side in the west, in the United States should not give up. There is time to still salvage, if not this agreement, then the whole

notion of arms control in the future.

And that kind of tallies what the Russians have been saying as well, contemporary molten politicians in Russia which is that, look, we

understand there are problems with this INF Treaty and with these Cold War era treaties, what we should be doing is expanding them to include other

countries like China, not simply violating them and casting them off as if they are no longer relevant.

LU STOUT: Got it. Matthew Chance, please stand by. We're going to bring in Carlie Atwood now. She is at the State Department, and Kylie, as

expected, Mike Pompeo has announced the U.S. withdrawal from the INF nuclear treaty. But a lot of questions in Russia as you heard from Matthew

just saying, about the intentions here, about the real reasons why the Trump administration is doing this.

KYLIE ATWOOD, U.S. SECURITY REPORTER, CNN: That's right and one country that you that did not hear Secretary Pompeo mention today was China, and we

know that China is in - on the mind of this administration, and this decision. That's because National Security adviser, John Bolton has

referenced the new strategic threat that China poses because they do have these missiles that Russia is now creating, even though they're not

supposed to under the treaty. That's one of the reasons that the U.S. is getting out of this treaty, so that they can become a little bit more

competitive in the missiles sphere with China and with Russia.

Now Pompeo said that these missiles that Russia has which are they are not allowed to have under the treaty are creating a strategic threat. They are

jeopardizing U.S. security and that's why the U.S. is getting out.

LU STOUT: So, the U.S. is getting out because it wants to be able to compete in the missiles sphere, as you put it. So after this move, what

happens next? Will the U.S. be able to immediately start testing and deploying its own weapons?

ATWOOD: Well, what we know is that the top State Department negotiator is not going to be sitting down with Russia for extensive conversations,

unless they come back to the table and say that they are going to take specific steps to get back into the treaty. Therefore, the U.S. is allowed

to engage in research and development of these missile programs, which were once not allowed to be partaken in when they were in treaty.

So the U.S. is going to start that process and then the question becomes when would the U.S. deploy these systems to Europe? And that will be a

very, very serious thing to watch because essentially, it will break down, cut down the time, in which there could be a war.

If Russia moves with its missiles, the U.S. has missile systems in the European region and moves quickly against them, then there could be, as one

former senator explained to me, war by blunder, which is the really scary thing here. But that's not going to happen today or tomorrow. It's going

to be a long time before we see such developments.

LU STOUT: That's right and we have less than a minute left here, but war by blunder is something nobody wants, but have people there expressed

concerns at the U.S. State Department about whether this is going to leave the world - make it a much unsafe place?

ATWOOD: Well, it's not just the State Department, right? It is former U.S. officials who saw that, yes, Russia has not been complying with the

treaty for five years, but conversations with Russia is better than getting out of the treaty.

It's also, as I said, European allies who are within the missile-launching range of Russia, the U.S. is not, so now that Russia is unhinged, that they

can move forward with this missile production and not worry about trying to hide it from the U.S., European allies are the ones that are worried.

Now, Secretary Pompeo addressed the fact that they have been supporting the U.S. in this move, but what are they going to do to reassure those European

allies that they are not creating a more direct threat for them.

LU STOUT: Absolutely. Kylie Atwood at the State Department. Matthew Chance, reporting live from Moscow. A big thank you to you both.

And that is it for "News Stream." I'm Kristie Lu Stout. Don't go anywhere, you're watching CNN.

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