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Kerry Testifies On Iran Nuclear Deal; Obama, South Africans Honor Mandela; Significance Of Handshake Debated; GM Names Female CEO; Govt. Sells Last Shares; More Snow Today

Aired December 10, 2013 - 13:00   ET

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

WOLF BLITZER, CNN ANCHOR: Right now, Secretary of State John Kerry about to testify about a deal to curb Iran's nuclear program. We'll explain. Highlights of the agreement, why Secretary Kerry may face a very tough sell up on Capitol Hill.

Also right now, federal offices here in Washington, they are closed thanks to the weather. The northeast is getting hit with another round of snow, sleet, rain and ice.

And right now, world leaders are heading home after a moving memorial service for Nelson Mandela. We're going to bring you highlights from the service and from President Obama's remarks honoring Mandela's life and his legacy.

Hello. I'm Wolf Blitzer, reporting from Washington.

The goal is to prevent Iran from developing a nuclear weapon. But the dilemma is over how best to reach that goal. The Secretary of State John Kerry's up on Capitol Hill right now. He's trying to convince lawmakers that an interim six-month deal with Iran is certainly the way to go. But some lawmakers are pushing to increase the sanctions against Iran to keep the pressure on.

Our Chief National Security Correspondent Jim Sciutto is here with me with the latest details. It's a tough sell especially before this House Foreign Affairs Committee.

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: No question. Tough because it's bipartisan opposition. You've got both on the Senate side and the House side, Democrats and Republicans who don't trust the deal, in effect, want to add sanctions. Plus the disagreement is so fundamental, the members of the House don't want Iran to have any enrichment program whatsoever. And that's something that the president says he's comfortable with. That's not banned under the interim deal and it's not a goal in a longer term deal. That's a fundamental disagreement.

BLITZER: It's a -- but he wants a very modest enrichment program, not enough necessarily to build a bomb but enough perhaps for peaceful purposes.

SCIUTTO: No question, modest monitored. But that's not a standard that many lawmakers in both parties think is possible, frankly. BLITZER: Right. The critics point out the U.N. Security Council has said no enrichment of uranium. Walk us through the basic elements of the six-month deal because Kerry is there. He's going to be testifying momentarily, making the case for the six-month deal saying if it doesn't work out, you can always increase sanctions later. But don't do it now.

SCIUTTO: Well, it's interesting to look at the differences between how they want these next six months to pan out. If you -- if you look at the proposed new sanctions, they want to close this Iraq heavy water facility, these are members of the Senate as far as the Senate deal is concerned. They want to shut down the entire enrichment program and they want to move out of the country the existing stockpiles of enriched uranium. Those three things are not in this interim deal. You have some slowing down of the building of this heavy water reactor. You have monitoring put on the enrichment program and also no enrichment capacity added but not rolled back. I mean, again, if you look at every one of those measures, they're at opposite ends of the spectrum there. It's difficult to see how they square that circle.

BLITZER: And it's interesting that here the secretary of state with the president's blessings and authority reaches a six-month interim arrangement with Iran. But one of the requirements they say is no new sanctions during this six months. But now, there's a push to increase sanctions. Not necessarily trigger them during the six months but get them ready six months down the road. And you have Democrats, including the chairman of the Senate Foreign Relations Committee, Bob Mendez, Chuck Schumer of New York, the number three Democrat in the Senate, saying it is a good idea to increase sanctions.

SCIUTTO: Well, it's interesting. You have this rare occurrence where you have the Iranian and American presidents making the same argument, in effect, saying that if you put the sanctions on now, that's going to scuttle the path to diplomacy. And the administration -- the U.S. administration takes it a step further. They say it's going to damage our credibility not just with Iran but, more importantly, with their European partners. And Obama made the case this weekend at the Saban forum here in Washington that it would encourage in fact our European partners to go their own way, in effect, fraying the sanctions by adding these new sanctions unilaterally here.

BLITZER: Jim Sciutto is going to be watching this hearing. We'll see what happens, if there are any fireworks, what the secretary of state has to say. He'll make the case, hold off, give this six-month opportunity a chance to succeed. We'll see how he does.

SCIUTTO: We'll be watching.

BLITZER: Thanks very much, Jim, for that.

Meanwhile, world leaders joined with South Africans from all walks of life today to honor Nelson Mandela.

The four-hour memorial service began with the singing of South Africa's national anthem. Even a steady rain couldn't dampen the spirit of those who came to pay tribute to Nelson Mandela. Crowds danced in the stands of the soccer stadium in Johannesburg. It's, by the way, the same location where Nelson Mandela delivered his first major speech after his release from prison back in 1990. During the program, world leaders praised Mandela for his courage, for his dignity in the fight against apartheid. Press Obama says he showed the world what's possible.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Nelson Mandela reminds us that it always seems impossible until it is done. South Africa shows that is true. South Africa shows we can change. That we can choose a world defined not by our differences but by our common hopes. We can choose a world defined not by conflict but by peace and justice and opportunity.

(END VIDEO CLIP)

BLITZER: President Obama's speech paid tribute, of course, to Mandela's life and his legacy but it was also a message about the political challenges he and other leaders face today. He says Mandela's death should cause each of us, he says, to examine our own lives.

We want to break down the president's speech on the world stage. Let's bring in our Chief Political Analyst Gloria Borger who's with us. Gloria, let me play another clip from the president because his words were pointed.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: For around the world today, we still see children suffering from hunger and disease. We still see rundown schools. We still see young people without prospects for the future. Around the world today, men and women are still in prison for their political beliefs and are still persecuted for what they look like and how they worship and who they love.

(END VIDEO CLIP)

BLITZER: All right. So, that was a pretty pointed message especially considering some of the other 90 leaders who were there where political freedom at home is not necessarily something they can --

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: That's right.

BLITZER: -- we take for granted.

BORGER: And I think, you know, the president was speaking both of reconciliation in the spirit Nelson Mandela but also in terms of the challenge that these leaders face and that leaders of all nations face. And, Wolf, what struck me also was that it was such a personal speech for this president. He did not know Mandela well personally. He met him when he was a young -- a United States senator. But he talked about that moment 30 years ago when he first heard Mandela and heard about what he was doing in South Africa. And he said in his speech that it stirred something in his soul and that is why he got into politics.

BLITZER: Let me play a clip because that gets right to the point you're making. Listen to this.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Over 30 years ago, while still a student, I learned of Nelson Mandela and the struggles taking place in this beautiful land and it stirred something in me. It woke me up to my responsibilities to others and to myself and it set me on an improbable journey that finds me here today. And while I will always fall short of Madiba's example, he makes me want to be a better man.

(END VIDEO CLIP)

BLITZER: Madiba being the clan name for Nelson Mandela. So, this is the first African-American president of the United States paying tribute to the first black president of South Africa.

BORGER: Whom he said inspired him personally to get into politics. I think it was quite a moment. I don't think it was lost on anybody in that stadium or around the world, Wolf. This is a president who is very good at giving speeches, as we know, we've heard many of them. But we hear few of them in which he speaks really from his soul about himself. And I think this is a Barack Obama that kind of opened up to the spirit Nelson Mandela who, after all, was one of the most warmest, congenial, open politicians. You know, Obama himself has been criticized as being colder and not as open. And the thing about Mandela is the lesson that all politicians can learn from him is that while he was very strategic, he was also very open, kept his enemies close and was also never too busy for the people.

BLITZER: Yes. I mean, when I -- when I --

BORGER: (INAUDIBLE.) Yes.

BLITZER: -- met him in Cape Town, South Africa back in 1998 at the presidential residence, --

BORGER: Right.

BLITZER: -- he was still president of South Africa. He took me around. He couldn't have been nicer. He couldn't have been warmer. Not just during the formal sit-down interview but privately when we just chatted, spoke about family and other things. He was a very, very impressive dignified man.

BORGER: And you have to wonder whether we're ever going to see the likes of any kind of an inspirational iconic political figure like that again.

BLITZER: Yes.

BORGER: We just don't --

BLITZER: Well, he was unique --

BORGER: Yes, we sure will.

BLITZER: -- and we will miss him. All Right. Gloria, thanks very much. The president, by the way, is getting ready to leave South Africa. He'll be flying back to the United States fairly soon, getting ready to board Air Force One in Johannesburg to make the long, what, 17, 18-hour flight back to the United States.

Meanwhile, a handshake between President Obama and the Cuban President Raul Castro raising some eyebrows, raising some questions as well. Was it just a polite gesture or was there something more? We'll discuss when we come back.

(COMMERCIAL BREAK)

BLITZER: President Obama praising Nelson Mandela as a giant of history, but the president's encounter with another world leader is generating some serious discussion.

Julia Sweig is a senior fellow for Latin America studies at the Council on Foreign Relations. She's here with us right now. Julia, let's talk about the handshake and we'll show it to our viewers once again between the president of the United States, President Raul Castro of Cuba. There is the president. He's walking up. There's Raul Castro. He's pretty happy. He's smiling. He puts his hand up towards his heart. The president is moving on to the president of Brazil, gives her a big couple kisses there on the cheeks. But if you were watching earlier, you saw Raul Castro pretty please by all of this. What's your take?

JULIA SWEIG, SENIOR FELLOW, COUNCIL ON FOREIGN RELATIONS: My take is that is a very public gesture made by the two presidents at an event the context of which is about reconciliation. The image is hard to mistake especially given their speeches. Of course, this could be a big something or it could devolve into a symbol without a lot of substance.

BLITZER: Because, as you know, everyone knew they were going to be on the podium together. This was not a surprise encounter or anything. They had a long time to think about this. And I'm sure the president gave careful consideration when he walks up there. Does he ignore Raul Castro or does he actually go down the line and shake everyone's hand?

SWEIG: I think he could hardly have ignored Raul Castro. And certainly this follows just three weeks ago when the president made a comment in Miami at the home of a Cuban exile, a prominent one, that it's time to update U.S. policy towards Cuba and that recognizing some of the changes under Raul. So, I think this is something that was definitely thought out. He couldn't have ignored him and the message of reconciliation and respecting diversity and dialogue was something that both Raul Castro and President Obama struck in their own talks.

BLITZER: Listen to Jimmy Carter, the former president of the United States speaking about this handshake, this encounter. Jimmy carter also in South Africa right now. He did a telephone interview with CNN's Becky Anderson.

(BEGIN VIDEO CLIP)

JIMMY CARTER, FORMER PRESIDENT OF THE UNITED STATES (via telephone): Well, I think it was something significant. I've known Raul Castro quite well for a number of years. I've -- I don't hesitate to visit Cuba and I want to and I've known his brother Fidel as well. But that was the first time, I believe, that an incumbent American president has shaken hands with a leader of Cuba. And I hope it will be an omen for the future.

(END VIDEO CLIP)

BLITZER: Now, he was mistaken on that part, Jimmy Carter, because Bill Clinton, as the incumbent president of the United States back in 2000, did shake hands not with Raul Castro but with Fidel Castro. You remember that.

SWEIG: I do remember it. And I remember that at first the White House denied the handshake and then corrected its denial and admitted to it. This is a very different moment right now. First of all, Fidel Castro is not in power. Raul Castro is in the second year of his final term in office. So we are four years away from a Cuba when the Castros will not be leading it. That's important.

BLITZER: If that plan works out. They could change their minds.

SWEIG: They -

BLITZER: But this is a -- this is a dictatorship, a tyranny in Cuba right now that's not a full democracy. There are no free and fair elections. If Raul Castro and Fidel Castro, if they're still alive and healthy, if they want to stay in power, they can.

SWEIG: It's true. But I'll tell you, that's a cautious and skeptical and perhaps appropriate view. My view is that they have put in too many reforms in place to move the dial backward now. And that's why I think this is different than 2000.

BLITZER: What I'm told -- what I'm told is that the president of the United States, since taking office five years ago, took some modest steps to improve travel restrictions, for example, between the U.S. and Cuba. He'd like to improve relations. But as long as Alan Gross, the American for four years now being held prisoner is continue to be held prisoner, for all practical reasons, this administration is really not going to do anything dramatic or important.

SWEIG: That's what you've been told. And that was in case - the -- in fact, the case in the first term. But if you look at the second term, what we now have rather than preconditions, that is release Gross and then we'll talk, is we now have a process where the two presidents are together, not always in sync, but in parallel, deploying their diplomats to take modest steps to talk about the easy, low hanging fruit bilaterally, while at the same time moving the dial just a little bit in order to address the issue of Alan Gross. I think we're in a different context right now. The Latin American context is very important. This president has an opportunity there. And I do think that this handshake following his statements a few weeks ago could actually be looked at five years from now as a milestone.

BLITZER: Yes. But if Raul Castro makes that decision to let Alan Gross come back to the United States, that would be a gesture, an important gesture. And if he wants to improve relations with the United States, he should do that immediately.

SWEIG: Yes, he should. And I think what we are - what we can't see is that discussions around precisely how that can happen, the stage for those discussions is now set.

BLITZER: Well, we'll see whether - if Raul Castro follows up the handshake. The president was very nice, shook his hand, made the gesture. Now, I think, the ball is in Cuba's court to see what the Castro brothers do.

All right -

SWEIG: Let's take a look.

BLITZER: Let's see. Julia, thanks very much for coming in.

SWEIG: Thanks for having me.

BLITZER: General Motors made history today when it announced its new CEO. In a minute, I'm going to tell you why and also how the federal government finally settled the books on the auto industry bailout. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Let's take a quick look at the markets right now. The Dow was essentially flat yesterday after soaring on Friday. Checking the big board right now, you see it's down about 25 points. Analysts say stocks could be in a holding pattern until later this month. That's when the Federal Reserve meets to decide if it will keep pumping money into the economy. Right now it spends about $85 billion a month on economic stimulus.

Big change at general Motors today. The carmaker has just named its first female CEO in the company's history. Mary Barra has been the company's head of product development. This announcement also comes just a day after the government announced it has now sold its remaining shares in the company.

CNN's Zain Asher is following this story for us from New York.

So, Zain, what's been the reaction to this dramatic announcement, a woman now leading GM?

ZAIN ASHER, CNN BUSINESS CORRESPONDENT: And, Wolf, you know, the reaction has been very interesting indeed. I've been speaking to industry analysts all morning. Obviously a lot of them praising and applauding GM for a decision that is progressive and symbolic at the same time. But some people are saying, you know, they cannot wait to see a world where GM or any sort of car manufacturer hiring a woman has CEO is a common occurrence and not necessarily headline news. They think that she should honestly be judged on, you know, her contribution, her achievements and not necessarily her gender.

But you cannot get away from the fact that this is traditionally a male oriented company. But I will say this, they have been making progress in their industry. Back in 1993, 15 percent of car manufacturer employees were women. Right now it's 21 percent. So certainly a lot of progress indeed, Wolf.

BLITZER: Well, good - good for her and good for GM, a woman now about to lead General Motors.

So on another issue, how important is this announcement made by the Obama administration that they have finally sold the last shares in GM? Does this close the books on the U.S. government's auto bailout? What's the final tally?

ASHER: Right. So yesterday the government finally announcing they were selling their remainder shares in GM. You remember back during the financial crisis, GM got roughly around $50 billion from the government during the financial crisis. That money was converted into equity. The government bailed out Chrysler, too. The government has made back $39 billion. So the taxpayers are still at a loss of roughly $10 billion.

But despite that loss, the government has said, you know, this bailout was crucial because it was cheaper than the complete collapse of the U.S. auto industry, which would have naturally led to job losses, huge pension costs for retirees. But now car sales are on track to actually be the best since before the recession. Automakers are hiring again and they are once again profitable.

Wolf.

BLITZER: So it's seen as $10.5 billion basic investment in GM and Chrysler. Ford was not part of that financial bailout. But it keeps those twos companies alive, productive. They're selling a lot of cars, creating a lot of jobs. So as far as $10.5 billion in U.S. taxpayer money, presumably money well spent, that Chrysler and General Motors alive and doing relatively well. Very well, I should say, right now. Zain, all right, thanks very much.

ZAIN: Thanks, Wolf.

BLITZER: A race to find a family with four young children in the rocky freezing remote area of northwestern Nevada. The search is widening as the temperatures plummet.

(COMMERCIAL BREAK)