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Four American Rleeased by Iran Following Lengthy Negotiations; American Journalist Found Dead in Belize; Trump-Cruz Feud Continues. Aired 3-4p ET

Aired January 16, 2016 - 15:00   ET

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


[15:00:09] UNIDENTIFIED MALE: This is CNN breaking news.

POPPY HARLOW, CNN HOST: I'm Poppy Harlow in New York. We want to welcome our viewers here in the United States and around the world. We begin with breaking news this hour.

After more than a year of top secret negotiations, four Americans who spent years, held prisoner in Iran, are finally headed back home. Their families cannot wait to embrace their loved ones. This is miraculous for them. Free prisoners include "Washington Post" reporter Jason Rezaian, who was convicted on espionage charges in Iran last year, along with Marine veteran Amir Hekmati, Pastor Saeed Abedini, and Nosratoliah Khoshawi. A fifth American is being released from Iran, a student named Mathew Trevithick. U.S. officials say his release is not part of this negotiated prisoner swap. That's important.

Here is what we know right now about the top secret deal, 14 months of intense negotiations went on before this was finalized. The United States agreed to drop sanctions related charges against seven Iranians. Their sentences being commuted. At this point we do not have names of the Iranians who are being released.

I want to go straight to my colleague, Wolf Blitzer. He joins me from Washington - Wolf.

WOLF BLITZER, CNN HOST, THE SITUATION ROOM: Poppy, huge name, major breaking news. We have team coverage of the stunning developments unfolding today around the world.

Our international diplomatic editor Nic Robertson is joining us from Vienna, Austria. CNN's Chris Frates is over at the White House. Also, joining us on the phone is Ramin (INAUDIBLE). He is a reporter for the "Los Angeles Times" based in Tehran.

Nic, first to you, the president of the United States, the secretary of the state of the United States, they were pretty widely criticized, especially by Republicans for not insisting that those American prisoners should be released, should be freed as part of the nuclear deal earlier on. Now they are about to be released as the nuclear deal begins formal implementation. You know there have been clearly secret back door channels setting the stage for this deal.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Huge pressure from family members throughout the negotiations in the summer here last year, Wolf. Remember, sitting and listening and talking with Amir Hekmati's family, the former U.S. marine, his family had come to the talks. They were standing outside of the Iranian delegation came out. They would shout questions. This was a family desperate for their loved one to be released. This very important time when the negotiations are going on. They felt this was a time for their voice to be heard.

Plenty of politicians lined up to criticize Secretary Kerry for not being able to bring about the release of these American prisoners inside a feared jail in Tehran, where torture has been commonplace in the past.

But we heard today from the Iranian foreign minister when he turned up here saying that it wasn't just an important day, because Iran was about to be told by the IAEA that had had complied with the nuclear deal so far. It wasn't just important, he said, because this will bring about a huge economic boost for the Iranian economy, tens of billions of dollars of frozen assets through sanctions to be released. He said this was an important day. And remember, this is the beginning of the day, before we heard about the prisoner exchange, when he said this was an important day, most of all for diplomacy. He said that threats and sanctions on Iran didn't work. Of course, many believe it's the sanction that brought Iran to the negotiating table in the first place. But it was very from the Iranian side when the Iranian foreign minister arrived here this morning that he had diplomacy, something going on behind the scenes going on.

Now, we're getting toward the end of the day here, and all through the day, we have been told the Iranian foreign minister and the EU foreign policy chief would come here to the IAEA headquarters, the international atomic energy agency headquarters that there will be some statements, some sort of press conference. That events has been slowly through the day pushed back hour by hour by hour.

There is an expectation here, corridors that it will go ahead soon. But even the nature of it keeps changing. It's now not going to be a statement. Not going to be a press conference. So the details of what it took to get this prisoner exchange and other details we would like to learn about, we may not get them quite as forthcoming as we would like. And of course, a lot of people here now asking the question, why are these planned events here today, why when this prisoner exchange seems to be going ahead, why are the officials not coming forward, not talking about it. It's raising questions here. Some uncertainty, Wolf.

BLITZER: Has the IAEA, Nic, the International Atomic Energy Agency, the nuclear watchdog, have they signed the papers formally said that Iran has fully complied with what they're supposed to do with their nuclear program, setting the stage for implementation?

[15:05:15] ROBERTSON: The Iranians believe that has happened, since earlier in the week, they've been saying that the IAEA, Dr. Yukiya Amano, the director general of the IAEA here would make that statement, that he would issue a report that would be confidential to the members of the p-5 plus 1, that's United States and European allies that helped negotiate with Iran. That this would be confidential statement, but he would - a confidential report, but that he would make a brief statement.

Now, the indications are, this is still, this is still going to happen. We are not hearing anything to say that the IAEA is walking back from what it said previously. The moment, it appears what may be slowing events here, a details to do with the prisoner exchange, rather than the report that the IAEA, the director general, is about to announce, Wolf.

BLITZER: Stand by, Nic. I want to bring Chris Frates. He is over at the White House.

What are you hearing Chris, from U.S. officials.

CHRIS FRATES, CNN INVESTIGATION CORRESPONDENT: Well, we are hearing that the timeline on when the president might speak continues to shift. And as we are hearing from Nic in Vienna there, there is a lot of things in flux. And I think, you know, that's certainly true for the president as well. We are not expecting that he will come out just to talk about the prisoner swap, and the release of the Americans. In fact, you know, they also want to build in the Iran deal. And while those two things were negotiated on separate tracks as we know they're happening today. So the president, the White House here, we're very much in flux, the schedule in flux as well, Wolf.

BLITZER: Stand by over at the White House. I want to go to Tehran right now. Ramin Mostaghim is a reporter for "the Los Angeles Times." He is joining us on the phone from Tehran.

What are you hearing over there Ramin?

RAMIN MOSTAGHIM, REPORTER, L.A. TIMES (on the phone): Everybody here is expecting something to happen, especially the IAEA report. It's very important for Iranians, because that's the beginning of the implementation. So we're baffled by, and media are baffled why it is pushed back hour by hour, because they are expecting it, I mean, as soon as possible, because of midnight. Now it's almost midnight local time. And they don't know why this implementation is not obviously announced.

I mean, the main issue of the society, follow the news, because actually it's involved in their own business. But they ought to shows the media are expecting something to happen, which is pushed back hour by hour. That is, I can say, I mean, suspense diplomacy is important, because swap of the prisoners have been done almost secretly and because we don't see any trace of the release prisoners in Tehran. There is a rumor that Jason Rezaian may land in Frankfort. The other one somewhere else. So it seems that the secret agenda is unfolding, I mean, drop by drop, and we don't know what will happen next.

BLITZER: Well, if you get more information, Ramin, let us know. Ramin Mostaghim is a reporter for the "Los Angeles Times" in Tehran.

Nic Robertson and Chris Frates, we will stand by to get more information from you guys as well. Coming up, we'll have more on the breaking news, five Americans freed

from an Iranian prison, including the "Washington Post" reporter, Jason Rezaian. CNN's Anthony Bourdain spoke with Jason just six weeks before his capture. You are going to hear some of that amazing interview and a whole lot more when we come back.

(COMMERCIAL BREAK)

[15:11:49] BLITZER: We are back with breaking news coverage. Five American prisoners released from Iran after 14 months of intense negotiations. Iran has freed four prisoners as part of a complex swap in exchange for the return of seven Iranians held in U.S. prisons. A fifth American was released without being part of that formal deal.

CNN spoke to the "Washington Post" reporter Jason Rezaian just six weeks before he was captured back in 2014. Anthony Bourdain, the host of "PARTS UNKNOWN," sat down with Rezaian and his wife in northern Tehran. Of course, now we know the couple would soon be forced apart. Jason Rezaian eventually convicted by the Iranians of espionage charges. This clip gives us a closer look at the Rezaian's lifestyle in Tehran just before that would change everything.

(BEGIN VIDEOTAPE)

JASON REZAIAN, U.S. JOURNALIST FREED FROM IRAN: As print journalists, our job is difficult but also kind of easy, because it's so much to write about, you know. The difficult part is convincing people on the other side of the world that what we are telling you, we are seeing in front of our eyes, is actually there. When you walk down the street, you see a different side of things. People are proud, the culture is vibrant. People have a lot to say.

ANTHONY BOURDAIN, CNN HOST, PARTS UNKNOWN: Jason Rezaian the "Washington Post" correspondent for Iran. Ugani, his wife, and a fellow journalist works for the UAE-based newspaper, "the National." Jason is Iranian American. Ugani is a full Iranian citizen. This is their city, Tehran.

The official attitude in general seems to be ever shifting. Is fun even a good idea?

J. REZAIAN: A lot of push and pull. A lot of give-and-take. When I first started coming here, you wouldn't hear pop music in a restaurant.

UGANI REZAIAN, JASON REZAIAN'S WIFE: It's everywhere.

J. REZAIAN: Now, it's everywhere.

U. REZAIAN: We have police, they arrests girls or women for having bad hijab or not being covert enough. But it is not that we live with the police in our head, you know.

BOURDAIN: One of the first things that people will say when you say well, I'm going to Iran, but don't they make women do this, this, and this. J. REZAIAN: Yes.

BOURDAIN: Actually, not so much. Not as much as our friends.

Compare and contrast, women aren't allowed to drive in Saudi Arabia.

U. REZAIAN: That's right or vote.

BOURDAIN: Or vote. You can drive, you can vote.

U. REZAIAN: Yes, of course. My sister is an accountant. She has her own company. Girls are allowed to do almost everything, except we want to go and watch football.

BOURDAIN: Can't go watch football.

U. REZAIAN: We cannot.

BOURDAIN: Women's issues are often at the point of change, or possible change here. On one hand, prevailing conservative attitudes demand certain things. On the other hand, Iranian women are famously assertive, opinionated. It's a striking difference from almost everywhere else in the region.

So why are we so friendly with the Saudis again?

J. REZAIAN: That's a good question. It is really good question.

U. REZAIAN: That question.

[15:15:09] BOURDAIN: Do you like it - are you happy here?

J. REZAIAN: Looks, I made a point now, after five years, where I miss certain things about my home. I miss my buddies. I miss burritos, miss having certain beverages with buddies and burritos, certain types of establishments. But I love it, I love it, and I hate it, you know, but its home. It became home.

BOURDAIN: Are you optimistic about the future?

U. REZAIAN: Yes especially if there is no clear finally happens, yes. Yes. Very much actually.

(END VIDEOTAPE)

BLITZER: Wow. Very moving, that segment there.

Joining us now is our senior media correspondent, Brian Stelter. He is host of CNN's "RELIABLE SOURCES."

Brian, you have been covering the Rezaian story for a long time. How is "the Washington Post" today responding to word of his release?

BRIAN STELTER CNN SENIOR MEDIA CORRESPONDENT: They are cautiously optimistic at this moment, Wolf, because they are still waiting on official confirmation that Rezaian has left the country. That we have been expecting that for some time. Still don't quite have it yet according to the post. Of course, we may have that in the coming minutes or hours here.

You know, the Post is an interesting, they're in an interesting situation here. And Rezaian is too. Each of the men who have been held in Iran are there and were there for different reasons. Rezaian is a journalist, so he is the guy that would be writing about this today, would be doing journalism, would be quoting sources, would be connecting interviews, would be covering this huge new story. But he has been behind bars for almost 18 months or 544 days to be exact. That is far longer than journalists who had been held in a country in past years. So there is a remarkably long and argue which is period of time.

Now, he has been through something that I'm sure he'll write about it in the future. And many of us are very eager to hear his story, because we can only imagine what it would be like. And to think it is worth mentioning, Wolf, journalists are oftentimes competitive, oftentimes even at each other's throats, but in this case, competing newsrooms, journalists to compete all around the world have come together to call for his release.

In fact, just about ten days ago, there was a letter sent from the heads of 25 news organizations, including CNN, AP, Reuters, all the major networks, all uniting to urge the state department to do more to have this day come. Now, of course, we know the negotiations were happening behind the scenes for 14 months. And it puts a lot of the media conversation about Iran and the U.S. into new perspective when we know about what was happening behind the scenes the whole time.

BLITZER: Do we know how the "Washington Post" was working, top officials, top executives there behind the scenes to work for his release?

STELTER: Certainly there was a lot of public diplomacy going on, a lot of public calls. According to the "Huffington Post," the "Washington Post" was also secretly aware of the secret prisoner swap. A number of news outlets knew about this in the fall and made a contest choice not to report on it in order to not possibly hurt and have an adverse outcome about what we are seeing today.

Now, that's something that has happened in the past as well. News outlets that know about journalist that are imperil. For example, David Rhode, who you interviewed earlier this afternoon. News outlet sometimes keep a lid on that information in order to ensure that the outcome is what everyone wanted to see and what we're seeing today.

So in this case, the "Washington Post" was aware of the prisoner swap talks and did not report on it. Of course, no news outlet wants to be the story. And "Washington Post" is fortunate position today.

We should mentioned, I think also, even though this is good news about Jason Rezaian today, the committee to protect journalists, founded in 2015, 199 reporters were being held in prison in different countries all around the world. China and Egypt are the two biggest jailers of journalists, mostly local journalist. We don't usually hear their names, but they are, as we speak, about 200 people who should be reporting the news, instead, behind bars for various reason all around the world.

BLITZER: Good point. Very good point. Very important point as well. Thanks very much, Brian, for your reporting.

STELTER: Thanks.

BLITZER: We want to let our viewers know that we will be re-airing that Anthony Bourdain episode, featuring one of Jason Rezaian's last interviews before he was arrested. You can watch that later tonight here on CNN, 8:00 p.m. eastern, once again. 8:00 p.m. only here on CNN.

Much more news right after this.

(COMMERCIAL BREAK)

[15:22:19] HARLOW: Welcome back to our viewers here in the United States and around the world, as we continue to follow the breaking news out of Iran. The leading presidential candidates in the United States, certainly expressing their pledge that five Americans are being freed by Iran. At the same time, taking swipes at the White House and the broader nuclear deal.

(BEGIN VIDEO CLIP)

SEN. MARCO RUBIO (R), PRESIDENTIAL CANDIDATE: These reports are true. Of course, we're happy for them and their families, but they should have never been there. And the fact of the matter, this tells us all we need to know about the Iranian regime. That they take people hostage in order to gain concessions. And the fact that they can get away with it with this administration is one of the reason I think is created in the Senate for more governments to do this around the world.

SEN. TED CRUZ (R), PRESIDENTIAL CANDIDATE: We don't know the details of the deal that is bringing them home, and that it may well be there are some problematic aspects to this deal. But at least this morning, I am giving thanks that Pastor Saeed is coming home. It is far later than it should have been, but we will be glad to welcome him home with open arms.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Now I have to see what the deal is for the four people. Because somebody said we're getting -- they're getting seven people back. So essentially, they get 150 billion plus seven, and we get four. It doesn't sound too good. But we have to see, because I just heard about this an hour ago. But, and I'm happy they're coming back, but I will tell you, it's a disgrace they've been there for so long. A disgrace, remember that. Total disgrace.

(END VIDEO CLIP)

HARLOW: Of course, we know Donald Trump has been very critical, highly critical of the U.S./Iran deal. Also that $150 billion note, that is, those are assets that are being unfrozen - Iranian asset, as part of the broader deal. That number has certainly been disputed by the White House.

CNN's political reporter M.J. Lee joining me now from Myrtle Beach, South Carolina. We knew that there was going to be political reaction right after. And we knew that the GOP reaction, frankly there are some Democrats in Congress who have been critical of the U.S./Iranian deal. Do you think that this will work with voters on the trail where you are in South Carolina, such a critical primary state?

M.J. LEE, CNN POLITICS REPORTER: Well, Poppy, I can tell you, we're not going to be hearing too many Republicans congratulating President Obama for this prisoner swap deal over the last couple of hours. We have heard many of the 2016 presidential candidates weighing in and giving their reactions. And as we just heard, Republicans like Marco Rubio, Ted Cruz, Donald Trump, all saying and ceasing this moment to say that they are not happy with how the Obama administration has handled this issue. Basically making two points here. One, that these prisoners shouldn't have been imprisoned in the first place. And two, that it took the Obama administration way too long to actually set them free.

I want to point out one other dynamic that is pretty interesting here in South Carolina and Ted Cruz, who actually just finished speaking behind me. He has been using this development to appeal to his evangelical base saying, praise God, that Pastor Saeed has been freed.

[15:25:21] HARLOW: And he also said, M.J., and let me read this quote from Cruz. He said while we celebrate their return, this deal serves as a piece of propaganda both for Iran and the Obama administration.

LEE: That's right. I mean, it is really difficult, I think it is going to be difficult to get these Republicans to say anything nice about this prisoner swap deal, because they want to tell their base, the Republican voters that they are trying to win over that, the Obama administration and their foreign policy, how they handled national security issues, and specifically Iran, has not been good and has not been handled well.

I do want to quickly point out, the tone that we're hearing from some of the democratic candidate is obviously, as you can imagine, is little bit different. Bernie Sanders saying in a press release today, this good news shows, that diplomacy can work, even in this volatile region of the world. So we are really seeing two different sides of this political events that obviously breaking news event of the release of the U.S. prisoners from Iran.

HARLOW: And any word from Hillary Clinton, former secretary of state, obviously who dealt with Iran quite a bit in that former life? Has she said anything?

LEE: That's right. We're still waiting to hear from Hillary Clinton on this issue. I'm sure that she will speaking on this. We know that reporter are going to be asking her where ever she campaigns next. So we will keep you informed on that front.

HARLOW: M.J. Lee reporting for us from Myrtle Beach, South Carolina. Thank you very much.

Coming up next, the "Washington Post" reporter held prisoner in Iran for longer, longer than the Iranian hostage crisis lasted. He is being set free with four other Americans. This is no question, a significant moment in history. Does it open the door further for diplomacy between the United States and Iran? Details ahead.

(COMMERCIAL BREAK)

[15:30:16] HARLOW: Breaking news. Major deal between the United States and Iran. A prisoner swap between the two countries, four Americans who had been held captive in Iran will finally be coming home. Along with them is "Washington Post" reporter Jason Rezaian. A fifth American, who was recently detained, has also been set free separately. That is the student you see on the far side of your screen, Mathew Trevithick.

CNN global affairs, Elise Labott is covering this for us from Washington.

Elise, you had a lot of insight into what went behind this. We are talking about 14 months of secret negotiations.

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: That's right, Poppy. And they were really -- it was really on the sidelines of these nuclear talks that the U.S. was having with Iran and world powers about this nuclear deal. And U.S. officials said today that they were holding parallel meetings with Iranian officials at every session, trying to emphasize how important those Americans and their fate was to the United States.

We understand that those talks, really accelerated after that nuclear deal was passed in July, and was signed in July. In recent months, U.S. diplomats and Iranian negotiators really trying to hammer out that deal. We had those four Americans in exchange for seven dual U.S./Iranian nationals in jail for various violation or economic sanctions against Iran.

But certainly a landmark agreement today. And really, announced on the same day we're expecting implementation of that nuclear deal. And U.S. officials saying today, they really think the kind of goodwill and budding relationship between the U.S. and Iran really helped to make this happen today.

HARLOW: And in terms of those seven that you mentioned, they're not the ones we have on the screen. These are seven Iranian-Americans, Iranian prisoners that are being freed by the United States. But we don't know their names yet. Their identities at all.

LABOTT: We don't know their identities yet. The U.S. hadn't confirmed them yet. We have spoken to the lawyers of a few that we believe these are the names that the Iranians put out. And these are as you said, U.S. Iranian dual nationals in American presence, not for crimes related to any violence or terrorism. There are some that are still in the U.S. jails. But U.S. officials made very clear they were not going to release anybody involved in any terrorists or violent activity. There was a much longer list that the Iranians originally presented. The U.S. whittled down. And we understand that these six of them, U.S.-Iranian nationals, and they were all in jail for violating these economic and trade sanctions that are against Iran. A lot of them being lifted today as part of this nuclear deal, Poppy.

HARLOW: Elise, big picture here. Is this a new day in Iran? And what does this tell us about just the bigger picture of how you have got the president Hassan Rouhani, the foreign minister Zarif, how they were able to convince of hard liners, like the ayatollah, like the Iranian revolutionary guard to go along with this?

LABOTT: Well, clearly the ayatollah communist who has really the final say in Iranian foreign policy signed off on this. But I think it does reflect the fact that President Rouhani, the foreign minister, they were able to get this nuclear deal done, that the more moderate wing of the Iranian regime is winning out here. And I think what U.S. officials are saying is what has happened, not just as a nuclear deal, and not just in the deal released announced today about the prisoners, but if you saw earlier this week, you had ten American sailors that inadvertently drifted into Iranian waters. They were detained by the Iranian revolutionary guard, but they were released in what is really considered record time in Iran, less than 24 hours. And clearly, the Iranian guard who nabbed them must have been told by, you know, the Supreme leader that, you know, they want to get this deal done. They want to get the implementation of the nuclear deal. They didn't want this issue of the sailor to be a distraction on this deal with the prisoners. And I think it shows the fact that the U.S. and Iran really willing to work together to solve some of the problems.

And I think what the U.S. is really hoping is that this budding relationship will pave the way for more cooperation. You have very volatile region in the Middle East. Secretary Kerry has developed a close working relationship with the foreign minister. There is a hope that Iran will play a more constructive role in Syria. I think they're hoping, I mean certainly they're clear eyed about the future, but hoping now that some of these what they call irritants in the relationship, and certainly the detainees were a distraction from some of the larger issues, now that the U.S. has its Americans released, that they can move ahead.

But I have to note there is still two Americans that the U.S., one of them, a businessman, Nezami, that wasn't released today. And then, of course you have Robert Levinson, former FBI agent who disappeared in Iran in 2007. His whereabouts unknown. The U.S. says the Iranian government has promised that it will try to keep seeking information about his whereabouts. They say that they don't know, Poppy.

[15:35:54] HARLOW: Right, exactly. They have maintained that now going on eight, nine years.

Elise Labott, thank you so much. Appreciate the reporting. Elise will be with us throughout our coverage this evening.

Straight ahead, the gloves are off. They're coming off as the two top polling GOP candidates focus on Iowa.

(BEGIN VIDEO CLIP)

CRUZ: The constitution hasn't changed, but the poll numbers have.

(END VIDEO CLIP)

HARLOW: A lighthearted moment in what has become an increasingly contentious campaign between Donald Trump and Ted Cruz. Reaction from both camps next.

(COMMERCIAL BREAK)

[15:19:35] HARLOW: Authorities are investigating the apparent murder of an American journalist, Ann Swaney, who was an online producer with ABC 7 News in Chicago. She was killed while vacationing in the Central American country of Belize. Her body found in a river near a farm where she was staying.

Our Sara Ganim ham has more.

(BEGIN VIDEOTAPE)

SARA GANIM, CNN CORRESPONDENT: Poppy, the family of 39-year-old Ann Swaney is still looking for answers telling me that they are dealing with the fact that this is all happening so far away. Swaney was an executive producer for ABC 7 in Chicago, and she was found murmured Friday in Belize. A police chief there saying she was lying face down in a river in (INAUDIBLE) district near the Guatemalan border. He said there were obvious marks on her neck, a laceration to her head and they believed she was sexually assaulted. She had gone missing the day before from a resort where she was staying and had horseback riding tours, but she had stayed behind to let someone else ride.

Her family told me she has been to the resort before, and friendly with the owner. They said Swaney was a lively, opinionated but also caring person who loved her work, loved to travel, telling me, quote, "she probably first and foremost loved her family and horses. When she wasn't working, she was visiting family or traveling the globe."

The general manager of ABC 7 in Chicago said this, on their Web site about Swaney. She was a trail blazer in the digital news space and one of our first Web site employees, but most importantly, she was a kind person who always had a smile and a positive attitude.

Now, the state department doesn't have any travel warnings or advisories in effect for Belize, but it does site the nation's high rate of crime. And a recent increase in homicides, especially in the Cayo (ph) district where Swaney was staying. Tourists have been targets, especially those traveling alone. And the state department says robberies and sexual assaults are reported in resort areas. Swaney is the second American believed to be murdered abroad this month -- Poppy.

HARLOW: Sara Ganim reporting, thank you very much.

Coming up next, the latest on the historic day in relations between the United States and Iran. Also to politics, the gloves are off. GOP front runners Ted Cruz and

Donald Trump going head to head battling it out for the love of Iowa voters, next.

(COMMERCIAL BREAK)

[15:44:56] HARLOW: No surprise, the campaign rhetoric between GOP front-runners Donald Trump and Ted Cruz is ramping up. That is, of course, to be expected with the Iowa caucus is just over two weeks away, Donald Trump is campaigning in New Hampshire today. He has tweeted blistering criticism of Senator Ted Cruz, targeting him for two undisclosed loans he took out in his 2012 senate raise then tearing into the senator's Canadian birth and whether he can legally become president. Trump tweeting today quote "Ted Cruz is born in Canada and was a Canadian citizen until 15 months ago. Lawsuits have just been filed. There is more to follow. I told you so." Cruz, campaigning in South Carolina today, shot back saying Trump doesn't have the record, temperament and fitness to be commander in-chief.

(BEGIN VIDEO CLIP)

[15:45:41] CRUZ: Well, you know, it seems Donald has a lot of nervous energy. And for whatever reason, Donald doesn't react well when he's going down in the polls.

(END VIDEO CLIP)

HARLOW: Cruz also attack would what he calls Trump's New York values. Here's Trump's response in an interview with Jake Tapper.

(BEGIN VIDEO CLIP)

TRUMP: I don't know what he was thinking about. I think he came across badly. I mean, some people gave him pretty good reviews in the debate. I think he came across very strident and not a nice person, and people don't like that.

(END VIDEO CLIP)

HARLOW: After those quote-unquote "New York values" comments from Ted Cruz, he had to contend with this cover from the New York daily news, drop dead, Ted, that's what it says. He apologized. But did he? You decide. Listen.

(BEGIN VIDEO CLIP)

CRUZ: Well, you are right. Donald Trump and Hillary Clinton and Andrew Cuomo and Bill de Blasio have all demanded an apology. And I'm happy to apologize. I apologize to the millions of New Yorkers who have been let down by liberal politicians in that state.

(END VIDEO CLIP)

HARLOW: Joining me now, Republican strategist, Kellyanne Conway, president of the pro-Cruz super PAC, keep the promise. Also with us CNN political commentator, Trump supporter as well, Jeffrey Lord. Thank you both for being here.

And I want to take you back --

JEFFREY LORD, FORMER REAGAN WHITE HOUSE POLITICAL DIRECTOR: Hello, Poppy.

HARLOW: Hello -- to that moment in the GOP debate when the feud between Trump and Cruz certainly intensified over that New York values comment. Listen.

(BEGIN VIDEO CLIP)

CRUZ: Not a lot of conservatives come out of Manhattan. I'm just saying.

TRUMP: Because he insulted a lot of people, I've had more calls on that statement that Ted made that New York is a great place, it's got great people. It has got loving people. Wonderful people. When the world trade center came down, I saw something that no place on earth could have handled more beautifully, more humanely than New York.

(END VIDEO CLIP)

HARLOW: Kellyanne, it's interesting. Many people really liked the way that Donald Trump responded. We even had Hillary Clinton tweeting yesterday that Trump was right on this. Do you think that Cruz regrets the remarks?

KELLYANNE CONWAY, REPUBLICAN STRATEGIST: It seems that he doesn't based on his response. But let me say this. I was a newlywed living in New York City in a Trump building when those towers fell. And I was a new New Yorker at the time, and I think everything Donald Trump just said about the people in New York and the way that they heroically responded to 9/11, not just on that day, but for months and years after, Poppy and Jeffrey, it's beyond discussion.

And also, there are many wonderful people in New York. I love living there. But the fact is, Donald Trump himself on several occasions has taken the time to talk about his New York values. He has used these words before and he has contrasted them to Iowa in the past. So I think the question for him is what exactly did you mean?

I notice none of the attacks on Senator Cruz by Mr. Trump have anything to do with substance of issues. He has yet to say Senator Cruz, you're out of step with Iowa voters on immigration, national security on taxation.

Let me just also say that even though I lived in New York, my husband has lived here for 25 years, 9/11 was also an American tragedy. We lost people in the Pentagon over Pennsylvania. There were people from California on those planes that were bound from California. So it was an American tragedy as well as New York tragedy. There is no question we all share it. But that is not what Senator Cruz was talking about.

HARLOW: But then, Kellyanne, you come out and say that he hasn't, trump hasn't attacked Cruz on anything substantive. And Jeffrey, to you, he has brought up his citizenship, which some

constitutional lawyers say is substantive question, and at the same time, Jeffrey, your response to Kellyanne saying that there is nothing substantive here, when Ted Cruz repeatedly has been bringing up New York values. Is that substantive?

LORD: Well, I think the New York values thing is substantive. And I think frankly, that's a mistake.

First of all, I love ted Cruz. I think he's terrific. This a primary season. Both of these candidates are doing what primary candidates do. This is what Barack Obama and Hillary Clinton did. This is what George H. W. Bush and Ronald Reagan did. You are having a fight for the presidential nomination. The last thing you do is come out friend over here is better than I am at this. You fight, and you fight over what you perceive as issues of the day. So that's number one here.

Number two in terms of the New York values thing, most of my family are from New York. One of my -- someone I knew from college was on flight 93 that went down here in Pennsylvania. I think Donald Trump's answer on this was magnificent and true, and it just, I think, I would say with respect to Senator Cruz he's made a mistake here. When you're running for president of the united, emphasis on United States, your fire should be concentrated on what's going on in Washington, not what's going on in state a, b, or c, because eventually if Ted Cruz is the nominee, he's going to have to carry New York state. Ronald Reagan carried it twice to the shock of establishment Republicans of the day. And Ted Cruz can certainly do that. But you don't do that by, you know, making New York some sort of an example of bad form.

[15:51:07] CONWAY: Nobody takes on Washington more than Ted Cruz. I mean, I know other people are having rallies and talking about going after Washington, but this is about his day job, it's in Washington.

LORD: I agree.

CONWAY: America doesn't like Washington and Washington doesn't like Ted Cruz. I think, is helping Senator Cruz well beyond Washington.

LORD: Yes.

CONWAY: And I like the way Jeffrey has handled this discussion, Poppy and Jeffrey, because I think the way Jeffrey and I are talking about this is very indicative of the way it seems Donald Trump and Ted Cruz feel about each other. They are the last two to have gone after each other and I think there's been a mutual respect there.

But I would point out there's not one thing that Senator Cruz has said that wasn't in response from something Mr. Trump said. So even if you listen to the debate completely, and I was there, Senator Cruz said, look, Donald has been playing Bruce Springsteen's "born in the USA" at his campaign stops now. You know, so I think he should play "New York, New York" and New York values. And then he said there aren't a lot of conservatives coming out of Manhattan, I'm just saying. That's directly in response to what Mr. Trump said there aren't a lot of evangelicals coming out of Cuba, just saying. HARLOW: Guys, I want to get to South Carolina with you, because this

is critical. Of course, Iowa is still important and so do New Hampshire. South Carolina is critical. This is a state with a track record of picking, you know, Republican presidential nominees. Since 1980, just one candidate has won the Republican nomination without winning South Carolina first. That was Gingrich in '12. Jeffrey, to you, the state make or break for one of these candidates this time around?

LORD: You know, I honestly don't think so.

HARLOW: Why?

LORD: I think this is going to go on for a while. We've had races in the past. I mean, the Reagan/Bush showdown went until, as I recall, May. I guess there was a South Carolina primary in 1980. That was its first year around. But I expect this to go on for quite a while here with each candidate sort of struggling in arm wrestling style. One of them will win, one of them will lose, and then you can reverse the process and winning one or the other is not necessarily a guarantee of anything. And so, I expect it will go on.

HARLOW: All right, Kellyanne, I have to leave it there. Jeffrey Lord, I have to leave it there because we have breaking news on this U.S.-Iran deal today being quote-unquote "implementation day."

I want to take you straight to Vienna. Our Nic Robertson is on the ground there.

Nic, we have been waiting all day and it is very late at night where you are. We have been waiting all say to hear from Doctor Yoko Yumano who is the director of the IAEA, the nuclear watchdog in all of this to say, yes, indeed, Iran has met its obligations under this deal. I understand he just came out with a statement. What do we know?

ROBERTSON: That's precisely what he said, Poppy. That Iran has met its commitments for the first part of the nuclear deal it signed last summer. He say that this now clears the way for the deal to be fully implemented. He says this is a very important day for the international community, but a lot of people have put a lot of work into this.

But significantly, he says, this opens a new phase between the IAEA here, the International Atomic Energy Agency, and Iran. And as part of that new phase Iran will have to enact what's known here as the additional protocols.

Now, those are very significant, because those additional protocols allow IAEA inspectors in Iran to say we would like to go and visit that site, or that site. Without the Iranian side necessarily declaring anything about this particular site or another site. If the inspectors have reason to believe that there may be some activity going on at a location that isn't within the agreement, then the inspectors will have a right to call to go and see it. And this is what Iran will have to sign up for, the director general of the IAEA saying that this begins a new phase of monitoring of this agreement. And, of course, as we know, there will be 15 years Iran's enriched

uranium must remain below a certain level. For ten years its number of centrifuges for enrichment must remain below a certain level, and so it's set through the agreement.

Now, the director general didn't detail all the particular bits of compliance that Iran has now complied with. That's in a separate confidential report. I think we can expect some of those details to come out over the next few weeks. But for now today he is saying quite clearly Iran has met its obligations and it's time to move forward. This, of course, unlocks the door for the Iranians and the frozen assets and sanctions, tens of billions of dollars, Poppy.

[15:55:53] HARLOW: All right. So let's talk about this. This is all of the steps outlined in the P5+1 deal. When you talk about the unfreezing of Iranian assets, there are two key things, Nic, right? The fact Iranian oil will come back on the global market at the time when crisis are indeed depressed. But at the same time, this is what has been so contentiously debated between Republican presidential candidates and the White House. Just exactly how many billions of dollars will flow back into the Iranian economy? What do we know for sure?

ROBERTSON: The maximum figure being talked about is $150 billion. Experts say, look, Iran has a lot of unpaid bills to clear that the final amount that it may sort of take home after this could be much, much lower in the tens of billions of dollars, some midrange estimates say that perhaps there will be $100 billion. It is a significant, significant amount of money going into the Iranian economy at a time when they need it - Poppy.

HARLOW: Absolutely. Nic Robertson, thank you very much live for us with that breaking news from Vienna.

Quick break, back with much more in just a moment.

(COMMERCIAL BREAK)

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HARLOW: Breaking news, we begin this hour. Thank you for joining us to our viewers in the United States and around the world.

After more than a year of top secret negotiations, four Americans who spent years held prisoner in Iran finally headed back home. In just a moment, we will see glide to the wife of a free prisoner, the American pastor, Saeed Abedini. Stay with us for that.