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CONNECT THE WORLD

Glimpse Inside Reina Nightclub After Shooting; Husband and Wife Survived Istanbul Attack; Battle Over Obamacare; Soldier Found Guilty of Manslaughter; New Law Targets Family Pardons and Blood Money; Pence Strategizes With Republicans on Hill; Trump Casts Doubt on Russia Hacking Allegations; Ambassador's Resignation a Blow to Brexit Plan. Aired 10-11a ET

Aired January 4, 2017 - 10:00   ET

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


(BEGIN VIDEO CLIP)

[10:00:14] UNIDENTIFIED FEMALE: We were, like, seeing people.

(END VIDEO CLIP)

JONATHAN MANN, CNN INTERNATIONAL ANCHOR: Inside the horror of the Istanbul terror attack. A firsthand account from a woman who survived the shooting.

Plus the latest on the manhunt for the suspect. Next we're live in Istanbul.

Also, showdown on Capitol Hill. President Obama and Vice President-elect Pence are readying their parties for the looming battle over Obamacare.

Can the Democrats defend the president's signature policy or will Republicans deliver on their promise and repeal the law? Coming up, we're

live in Washington. And --

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (Through Translator): It was cruelty. This was cruelty against my son. What honor?

(END VIDEO CLIP)

MANN: A new law in Pakistan aimed at stopping so-called honor murders and making sure the victims get justice. Later in the program a report from

Lahore.

Hello, and welcome to CONNECT THE WORLD. I'm Jonathan Mann at CNN center in Atlanta. Thanks for joining us.

Turkey has identified the gunman who killed 39 people in a shooting rampage at an Istanbul nightclub on New Year's Day. They're still not naming him,

though, or revealing his nationality. Police also detained 20 suspected members of ISIS in connection with the attack.

Our Sara Sidner reports the once glitzy Reina nightclub is now scarred by bullet holes and stained with blood.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT: In order to get to the Reina nightclub from the Bosphorus, you of course have to take a boat. We're now entering

where this massacre happened.

It's truly in a beautiful spot. From the beautiful terrace, which is on the Bosphorus, you really can't really see any damage, but the moment you

walk in, you can see the very first bullet hole that we've been able to see from this attack, that is definitely a high caliber weapon. Huge hole.

That's blood from a victim on the wall right, beneath the large bullet hole.

To get some idea of just how frightened people were, look at what they left behind. Shoes, coats, there are purses, there are glasses and scarves. We

also see a hat and that is stained with blood. This is the bar and the dance club area where people would eat and drink, dance and enjoy

themselves.

This area is where people sort of trying to hide behind anything they could but in the end this place where we're standing was strewn with bodies.

From what we can see this is the area that seems to have the most bullet holes and the holes are huge. But surprisingly, there aren't that many

considering all the shooting that happened that night and that is because the terrorist was targeting them one by one by one.

This is the view from the Reina across the Bosphorus and you're looking at the Asia side with its rolling hills and beautiful mosques. This is why

people came here, it is incredibly picturesque. But now so many people will remember that a slaughter happened here. And the owner is really

struggling with figuring out whether or not he will open up this club again. He says he'll leave it up to his employees who both saved people

and died here.

(END VIDEOTAPE)

MANN: And Sara Sidner joins us now live from Istanbul.

Sara, that nightclub has been turned into a killing field. It speaks volumes about what happened there, but you actually spoke to some of the

survivors. What are they telling you?

SIDNER: Their story absolutely harrowing. We talked to a young woman who was married with a child. She's from Jordan. Her husband is from Saudi

Arabia. The two of them inside the club looking to have a great time. They were away from home for the first time in a very long time and then

the shooting began.

(BEGIN VIDEOTAPE)

SIDNER (voice-over): The sound of rapid gunfire captured from afar, the moment of terror, as a gunman began massacring people inside Istanbul's

Reina nightclub. Naef Zakaria Al Wazan and his wife were inside the Reina nightclub having dinner. Their video shows the excitement before the New

Year arrived.

It was supposed to be the honeymoon they never had. Instead, they both ended up pierced with bullets. Naef too exhausted to recount the story.

His wife too shy to show her swollen face, speaks for the both of them.

UNIDENTIFIED FEMALE: When the sound says, OK, let's go, after OK, let's go, after this statement, I hear, like shooting.

[10:05:07] SIDNER: She says her husband begged her to crawl toward an exit. But it was difficult. A young woman had grabbed onto her shoe.

UNIDENTIFIED FEMALE: She was dying, and she was like asking me, cover me, don't go, cover me.

SIDNER: Naef knew they couldn't stop. He was watching the gunman's every move.

UNIDENTIFIED FEMALE: He said to me, don't say anything. He is going to every table and shoot the people.

SIDNER: Then a gaping wound appeared on her knee. She had been shot and Naef knew then survival meant running. They tried, but the gunman

responded. Just as he had done outside the club, he aimed to kill. Naef was hit, a bullet entering his shoulder and exiting his back. He couldn't

run anymore.

UNIDENTIFIED FEMALE: He said to me, sorry, I can't. And he was like, saying, if I die, just be with my son until he gets older and after that,

live your life. I love you, you know how much I love you, and he just give me his ring and -- and his ring were like filled with blood. And he just

gave it for me. He said to me, keep it with you and remember me. If I hurt you someday, don't -- it's not me.

SIDNER: Her husband had surprised here with a trip to Turkey. They left Saudi Arabia with excitement. It was their first trip away from their

young son. But their New Year's Eve was interrupted just one terrible thought inside that club, they may never see their son again.

UNIDENTIFIED FEMALE: We were like seeing people, bodies and -- thank God, thank God, that's where like a dream, dream, that I was like saying to him,

can you just catch my hand and told me if we are in a dream and we were going to open our eyes again, are we alive?

SIDNER: She began dragging her blood-soaked husband. They made it just outside the club. Finally relief. A taxi driver arrived and helped hoist

them to safety.

UNIDENTIFIED FEMALE: If he hear me now, that taxi guy, if he hear me, I say to you, thank you so much. I really appreciated everything you do --

you did for us. You saved my -- my life, me and my husband.

(END VIDEOTAPE)

MANN: It's horrifying and the killer is still on the loose.

Sara, what are Turkish authorities saying about the investigation?

SIDNER: The number of arrests have doubled. There are now 20 people authorities say that have been arrested in Izmir. That is coastal town.

And including in those 20 people, they're now saying -- and this just came in to us -- 11 of those were women. There were children that had to be

detained or taken by authorities because there were so many women that were detained and there is so much more information coming out that perhaps this

attacker was from the central city of Konya. It's also a very conservative place.

But we really just still don't know the name of this attacker. Authorities say they think they have identified him but they certainly haven't given

out any new information about him and his name and where he might be so the manhunt is still underway, Jonathan.

MANN: Sara Sidner, live in Istanbul. Thanks very much.

It's a battle royal on the U.S. Capitol Hill over the Affordable Care Act, Obamacare. President Barack Obama's signature legislation and a big part

of his legacy. He's visiting Democratic lawmakers right now to sketch out a defense plan for Obamacare. Their strategy convinced Republicans a full

repeal would hurt them politically. Meanwhile Republicans will get their own marching orders from Vice President-elect Mike Pence also visiting

Capitol Hill. Donald Trump has vowed to repeal and replace Obamacare when he takes office.

Phil Mattingly joins us now from Washington with a look at what we can expect today and in the months to come.

Phil, we are talking about on one-sixth of the U.S. economy. The health of millions of Americans. It touches the country. It touches every family,

every home. What are the two sides doing?

PHIL MATTINGLY, CNN CORRESPONDENT: Well, I think that's a really important point as we go into this new Congress. Look, Republicans control the

House, they control the Senate, in 16 days they control the White House. That doesn't mean this process is going to be easy, even though Senate

Republicans have already started the process of repealing the Affordable Care Act. The repeal part might not be difficult, the replace part will be

extraordinarily difficult.

And that's where it comes to how these two sides are operating right now. Republicans know they want to repeal. They don't know an agreement on what

a replace would actually look like and you kind of nailed it in terms of what Democrats are doing right now behind closed doors, making very clear

that strategy, messaging, how they defend this law is incredibly important as we go forward, and one of their key kind of points that they want to

make over and over again is what Republicans are going to do by repealing before they replace, send the market into chaos, send coverage into chaos,

perhaps take coverage away from the 19 million to 20 million Americans who have gotten coverage because of Obamacare.

[10:10:15] They believe they have throw Republicans on the defensive and perhaps repeat what Republicans did to them in making Obamacare so

unpopular in the first place -- Jon.

MANN: Now, Phil, while you're talking to us, we are also looking at pictures of a room where we expect to hear from Vice President-elect Pence

and Speaker of the House Paul Ryan when they finish their meeting, so we are expecting to hear more about this. But just to drill down a little bit

more on the point you're making and the one they're going to have to address when they start speaking to the cameras, we have a majority of

Republicans in the House of Representatives, majority in the Senate, and a president-elect who is a Republican, and there is no broad consensus on

what they're going to do after making all these promises for all these years?

MATTINGLY: It's a difficult issue. And I think you made the point. It's one-sixth of the economy, it's an incredibly complex system to begin with.

Repeal is easy, and I think when you talk to Republican -- senior Republican aides, even lawmakers on Capitol Hill, they'd say look, that's

the easy part. We can knock that out quickly. And there are top line agreements on some of the aspects of whatever the Republican alternative

health care plan is going to be.

But if you look over the last six, seven years, basically, Jonathan, there has been no central agreement, really no central plan for Republicans

because it's a lot easier to oppose something that go on the record and support it. And whether exchanges to Medicare or Medicaid, or timelines

for implementation of whatever a replace would actually entail, there are real disagreements, not just among kind of a few senators or a few House

members, but real kind of core groups in both chambers right now, and as long as that exists, it is going to be problematic going forward.

Because look, repeal, because of the mechanism that's being used on Capitol Hill, they can do that with just a simple majority. With just 51 senators.

And Republicans currently control 52 seats. Not a problem. Replace, legislatively, they're going to need Democrats to move that forward. That

changes the dynamic quite a bit and that kind of lays out why this is such a complex process.

MANN: Once again to drill down on the details, because the headline is clear, it's get rid of it.

MATTINGLY: Right.

MANN: But in the absence of a plan, what are they telling the kinds of institutions that have to do long-term planning, insurance companies,

hospitals, or doctors, and above all, patients, millions of Americans waiting to find out what's going to happen in the gap between repeal and

replace?

MATTINGLY: The final group is I think the one that they need to address quickly and forthrightly, if you. I think when you talk to insurance

company lobbyists here on Capitol Hill, when you talk to hospitals here on Capitol Hill, there's a lot of I have no idea. When you listen to some of

their earnings calls a couple of months ago as they started to try and map all this out, they don't exactly have a clear path forward and that's also

the case with the individuals who have coverage through Obamacare.

Now one source who's in the room at the Mike Pence meeting right now said one of the pledges that Mike Pence made to the lawmakers that are sitting

there was there cannot be major disruptions in coverage. There cannot be chaos. Now that seems to imply that they're going to working on some type

of timeline, that they will keep Obamacare in place even after its repeal until a full replacement plan is in place.

But again, this goes back to the original problem, John. If they don't have a kind of central agreement on what a replaced plan will actually be,

how are they going to repeal this and not cause chaos?

MANN: Phil Mattingly in Washington, thanks very much.

And once again, we are waiting for that news conference, the vice president-elect and the speaker of the House of Representatives talking

about millions of Americans and a big chunk of the U.S. economy and what they're planning to do about it. We'll bring that to you live when it gets

underway.

Now to a case that's divided Israel between those who think they witnessed an execution and others who saw self-defense. Well, now a military court

has made up its mind and found an Israeli soldier named Elor Azaria guilty of manslaughter for shooting and killing a wounded Palestinian suspect.

Let's take it back to what happened. Have a look at Azaria at a settlement in Hebron in the West Bank back in March. You're seeing the scene just

minutes after what the Israeli military says was an attack by two knife- wielding Palestinians on some Israeli soldiers there. They shot one alleged attacker, killed him on the spot. But only shot and wounded the

other. He's in black on the left there. Still alive until Azaria cocks his gun and shoots him once in the forehead.

The soldier's state of mind has been the main focus of the case but it's a lot bigger than that. Our Oren Liebermann has been following the trial for

us from Tel Aviv and joins us.

Oren, tell us about this. This has been a long, painful, careful case and it touched a lot of Israelis and obviously a lot of Palestinians in a very,

very basic way. Walk us through what the courts decided.

OREN LIEBERMANN, CNN CORRESPONDENT: Well, it played out very publicly because every witness, every statement, and there were dozens of witnesses

on both sides here, all of that was carried in the media.

[10:15:07] And it wasn't just media commentary. Politicians regularly weighted over the course of a month's long trial here.

You've described exactly what happened and what led up to this trial, the question was, what did Elor Azaria do? What was he thinking, right? The

question was never, did he pull the trigger? We knew that from the very beginning. We saw the video and the Israeli military said there's no

question there. It was, what was he thinking? Was he acting in self- defense or was he acting out of vengeance?

The court, we know what they decided. A unanimous decision from the military court saying that he acted -- they said when he shot, he shot

needlessly and they found him guilty of both manslaughter and of course that was the bigger charge, and improper behavior. But for much of this

trial, it seemed like it wasn't Elor Azaria on trial, it was the values of the Israeli military. This happened back in March at a time when the

Israeli military was facing increased criticism.

Human rights groups saying Israeli soldiers were too quick to pull the trigger, using too much force against a wave of Palestinian stabbings and

ramming attacks. Bigger picture, that was very much at the heart of this trial and that engendered stronger emotions on both sides.

The Israeli military is supposed to be a unifier in society, transcending cultural differences, religious differences, differences in opinion. And

this trial became the military versus one soldier. The Israeli leadership on one side saying that no soldiers accepted a lot of the break to Israeli

military code of ethics. Some politicians on the other side standing by the soldier and saying no soldier should ever be on military trial.

Jonathan, the consequences, the arguments about this trial will end long after -- will go on long after the latest appeal.

MANN: What's going to happen to him now? Some politicians are already talking about trying to get a pardon for him.

LIEBERMANN: And we saw those statements come out very quickly. Some say he never should have been on trial. Now that he has been convicted,

they're saying that he should be pardoned or at the very least his sentence commuted to a shorter sentence. His lawyers have promised to appeal. They

say the military court and the judges there were biased from the very beginning.

Now it's in the hands of the president. If there is a call for a pardon, that has to come officially from the minister of Defense and go to the

president. And that's up to the president. We have seen no indication there. Speaking of the minister of Defense, he said we have to respect the

military judge's decision even if there are those like me who like it less, so he coming out I wouldn't say in favor of the military court's decision

but standing by and saying the Israeli society, the Israeli military has to respect the decision of a military court.

MANN: I wonder if you could parse this for me because what seems to be emerging is that with a soldier on trial, you would expect that the Israeli

military might feel targeted but in fact it sounds like most or much of the brass was harder on this young sergeant than civilian politicians were.

LIEBERMANN: Well, I would say some civilian politicians there. The Israeli military leadership from the IDF chief of staff to the Defense

minister came out and said this was a breach of the code of ethics, this was a soldier who was not following orders. The Palestinian attacker was

wounded. He was on the ground. He no longer posed a threat. In fact the IDF shortly after this happened, their first -- one of their first

statements explaining this said 11 minutes passed between the stabbing attack and Elor Azaria cocking his gun and pulling the trigger and killing

the wounded Palestinian suspect on the ground.

That, the Israeli military said is simply what soldiers don't do. If there's no threat anymore, there's no for further action. Therefore they

say was a breach of the Israeli military code of ethics. And that is what's so important to them and that is what every soldier needs to follow,

that's especially important in a country where almost every Jewish youth serves in the military.

So they see this as much bigger than one soldier on trial. The consequences of this affect every soldier who will serve from now on. It's

a clear statement then. The Israeli military, the leadership that is very much standing by its code of ethics and saying there is no soldier who's

not allowed to follow this. It's incumbent upon every soldier.

As you pointed out some politicians have immediately jumped to the soldier's defense and said we can never put an Israeli soldier on trial,

especially not when he shot a Palestinian attacker. That is the debate we'll continue to see. We may have a guilty verdict here and that verdict

may be upheld or not upon appeal, that debate will continue to play out I suspect for a long time here.

MANN: Oren Liebermann, live in Tel Aviv, thanks very much.

You're watching CONNECT THE WORLD. We'll be back right after this.

(COMMERCIAL BREAK)

[10:21:39] MANN: Welcome back. You're watching CNN. This is CONNECT THE WORLD. I'm Jonathan Mann.

Imagine a situation where a killer can go unpunished just because the victim's family says they forgive him or her. That's been the case in

Pakistan where many who commit honors murders end up serving no jail time and are never tried in the first place because of the pardons. A new law

now aims to abolish that controversial system.

CNN's Alexandra Field has spent time in Lahore reporting on this story. She joins us on this day from Hong Kong. And tell us about this, this is a

scourge, it's astonishing that it continues into the 21st century. What did you find?

ALEXANDRA FIELD, CNN CORRESPONDENT: Well, and, Jonathan, these kinds of killings are not specific to any single country, a single culture, a single

religion, but we do know that they happen out of frankly alarming rate in Pakistan. In 2015, nearly 1,000 people were killed in the name of honor.

These crimes disproportionately affect women. And those who seek to stop these kinds of killings from happening say that a culture of impunity has

fueled these kinds of crimes. They hope that this law will bring justice in some cases, but many still feel that this won't go far enough toward

ending what's frankly a tradition of killing.

(BEGIN VIDEOTAPE)

FIELD (voice-over): For years in Pakistan, the law has let some get away with murder.

Azmat Bibi says she watched her son Ghulam Abbas die, shot in the head by the family of a woman she was accused of having an affair with, then they

killed the girl, too. Victims of a so-called honor killing.

AZMAT BIBI, "HONOR MURDER" VICTIM'S MOTHER (Through Translator): It was cruelty, this was cruelty against my son. What honor? The girl was so

young. She was 13 years old.

FIELD: None of the accused went to prison. Court documents show they were legally pardoned by the families of both victims. The girl's own mother

and her father, who's one of the accused, and Azma Bibi, too.

BIBI (Through Translator): I have placed a rock on my heart. I have to live for my other son who is alive. I cannot maintain enemies.

FIELD: Azma says she didn't accept blood money in exchange for the pardon, but it's a common practice in Pakistan where in 2015 nearly 1100 women and

88 men were victims of honor killings.

Now a new law aims to change that, requiring a new 25-year mandatory prison sentence for those who were convicted in cases of honor killings, making

pardons no longer legal. But there's fear the courts won't be tough enough on killers emboldened by their beliefs, committing crimes that have long

been tolerated.

MUHAMMAD YASIR, "HONOR MURDER" VICTIM'S BROTHER (Through Translator): They have confidence in their murders that they can kill and society will not be

able to do anything to them.

FIELD: Muhammad Yasir's brother Hafiz Shazad Saeed (PH) was murdered along with a woman he was accused of having an affair with. A police report

quotes witnesses naming her family members as the men who tied him up and slit his throat. No one was convicted for crimes.

YASIR (Through Translator): When I see my brother's killers on the streets, I will pray to Allah and I will ask him for justice for there is

no justice in Pakistan.

FIELD: Azmat says she had no way forward but to pardon her son's killers.

BIBI (Through Translator): I will get justice from the house of God. Humans do not give justice.

[10:25:02] FIELD: She has hope in the future Pakistan's courts can do more.

(END VIDEOTAPE)

MANN: Alexandra Field reporting.

Let's go live now to Washington, though, and U.S. Vice President-elect Mike Pence speaking to reporters.

GOV. MIKE PENCE (R), VICE PRESIDENT-ELECT: At their weekly luncheon, and this is a day that our message is very simple. On behalf of the president-

elect and on behalf of all the leadership that we are 16 days away from the end of business as usual in Washington, D.C.

Today our message is very simple. Working with the leadership here in the House and in the Senate. We're going to be in the promise keeping

business. The president-elect campaigned all across this country. He gave voice to the frustrations and the aspirations of the American people. He

laid out an agenda to make America great again and my message on his behalf today before this conference and before members of the Senate is that we

intend to keep those promises.

That begins with assembling a government and the energetic effort through the course of this transition to build a Cabinet that will be able to

implement that agenda speaks for itself. It will literally begin on day one. Before the end of the day, we do anticipate that the president-elect

will be in the Oval Office taking action to both repeal executive orders and also set into motion through executive action policies to implement,

promises that were made on the campaign trail.

Working with the Congress, we're going to have that classic three-part agenda, that the president-elect talked about so often on the campaign

trail. Jobs, jobs, jobs. Folks, this is going to be from day one. And to work with the Congress and you heard about the efforts this week, to begin

to roll back the onerous regulations that have been stifling growth in the American economy and stifling jobs and opportunities.

We're going to be working with the Congress over the course of the first several months to construct the kind of tax reform for businesses and

individuals that are unleashed the bound up energy in the American economy.

We're going to keep our promises to end illegal immigration, build a wall, we'll have an infrastructure built. We'll invest in rebuilding our

military as our commander-in-chief marshal strategies with our military commanders to hunt down and destroy ISIS.

But the first order of business is to repeal and replace Obamacare and that was our message today and it will be our message on Capitol Hill. And it

needs to be done, not just as a promise kept but because in the course of this election, the American people had a choice. And what appeared to many

as against all odds, oftentimes with overwhelming opposition, our president-elect took his case to the American people to repeal and replace

Obamacare and the American people voted decisively for a better future for health care in this country. And we are determined to give them that.

The reality is I was here in March of 2010, in another capacity when Obamacare was signed into law, I remember all those promises. We were told

if you like your doctor you can keep him, not true. We were told if you like your health insurance you can keep it. Not true. We were told that

the cost of health insurance was going to go down, not true.

The reality is today premiums this year are increasing by an average of 25 percent in some states. In Arizona, premiums went up this year 116

percent. 63 percent in Tennessee, 53 percent in Pennsylvania, 40 percent in North Carolina.

Obamacare has worked a hardship on American families, on American businesses, and in a very simple conclusion, the American people have sent

new leadership here because Obamacare has failed. And it has been rejected by the American people. But now is the time for us to keep our promises.

Step one will be to repeal Obamacare, but as the president-elect said today, and I -- I admonished the members of the House Republican Conference

today.

It's important that we remind the American people of what they already know about Obamacare that the promises that were made were all broken and I

expect you'll see an effort in the days ahead to talk about the facts around Obamacare.

And secondly, of course, is to begin that orderly transition to something better. The truth is that to the commitment that the president-elect made

was to repeal and replace Obamacare. And as he said this morning in a tweet, it will be important that we be careful as we do that, that we do

that in a way that doesn't work a hardship on American families who've gained insurance through this program. It doesn't work a hardship on our

economy.

[10:30:09] And as I told the House Republican Conference today, we're working on a strategy in concert with the leadership of the House and the

Senate for both a legislative and executive action agenda to ensure that an orderly and smooth transition to a market-based health care reform system

is achieved.

The speaker of the House used the word stable, and we will do that. In his famous speech in Philadelphia, the president-elect spoke about an orderly

transition. And it will be that. But make no mistake about it, we're going to keep our promise to the American people. And we're going to

repeal Obamacare and replace it with solutions that lower the cost of health insurance without growing the size of government.

Now there is a broad range of ideas about how we do this. And Republicans have been offering those ideas again and again, literally every year since

Obamacare was first signed into law. We're going to be working with Dr. Price on both before and after his confirmation, when he steps into the

role at HHS, working with the Republican leadership in the House and the Senate to bring forward those solutions and to take the case for those

solutions to the American people.

That being said, I couldn't be more humbled and more excited to be back in the Capitol today. I'm -- I was encouraged by the president-elect to come

here to Capitol Hill, the first full day of work for members of Congress, because it's time to get back to work. While others are visiting the

Capitol today talking about defending the failed policies of the past, we are here today speaking to Republican majorities in the House and Senate to

advance policies that will make America great again and have a more prosperous future for all the people of this nation.

Question?

REP. PAUL RYAN (R), HOUSE SPEAKER: No shouting out.

UNIDENTIFIED REPORTER: The question is for Vice President-elect Pence.

RYAN: It's all good, but no shouting out.

UNIDENTIFIED REPORTER: Today (INAUDIBLE) in defense for Russia, compromised the national security. Yet President-elect Trump is citing the

latest (INAUDIBLE) as the source of (INAUDIBLE). Where do you stand on that? With Putin or with President-elect Trump?

PENCE: The president-elect and I will receive a briefing from the leadership of our intelligence agencies this coming Friday. And we'll be

listening in. Look, I think that the president-elect has expressed his very sincere and healthy American skepticism about intelligence

conclusions. We're going to sit down later this week. The president and I have been receiving since the election regular intelligence briefings,

received a presidential daily brief with the president yesterday. And we'll be looking -- we'll be looking at the facts and the information. But

I think given some of the intelligence failures of recent years, the president-elect has made it clear to the American people that he's

skeptical about conclusions from the bureaucracy, and I think the American people hear him loud and clear.

UNIDENTIFIED REPORTER: Mr. Speaker, as mentioned, the president-elect is warning you should be careful here. Is there a danger here? Why move

forward with the repeal of Obamacare when you still don't have a clear plan to --

RYAN: The president-elect is making an important point that we're trying to emphasize right here today and that is, so much damage has already been

done to the country. Obamacare is a story of broken promise after broken promise after broken promise followed by a failing program, higher

premiums, higher deductibles. So we want to make sure as we give relief to Obamacare, we do it in a transition that doesn't pull the rug up from

anybody during that transition period. That's the point that we're all trying to make.

This law has failed, it's getting worse, families are hurting, no one has choices. We've got to fix this by replacing it with something better. And

in that transition we want to make sure we don't pull the rug out from anybody during that transition. That's the point we're all trying to make.

UNIDENTIFIED REPORTER: So why still no plan to replace it?

RYAN: We have a plan to replace it. We have plenty of ideas to replace it. And you'll see, as the weeks and months unfold, what we're talking

about replacing it, how we can get better choices with lower prices by not having across the government take over health care, which is causing all

these problems in the first place. Sherman?

UNIDENTIFIED REPORTER: For the vice president-elect or both of you. We're talking about transition that's going to happen (INAUDIBLE). Is it

possible you could stem some of these provisions (INAUDIBLE) that are popular for a temporary period of time? And I think people want to know

what this is going to look like. And (INAUDIBLE).

[10:35:04] PENCE: Well, Jake, I think it's -- I want to be very clear. And I would commend you and anyone looking on to look into -- no, I was

commending you to do something, not commending you --

(LAUGHTER)

RYAN: Nice guess. That's nice.

PENCE: That's nice. It's good to be back. It really is.

RYAN: It's good. It's good.

PENCE: I would just -- I would commend all of your attention to the president-elect's speech in Philadelphia during the waning weeks of the

campaign, where he laid out a plan to repeal and replace Obamacare. He laid out the principles of harnessing the power of health savings accounts,

allowing Americans to purchase health insurance across state lines.

But his commitment was very clear in that, that we will insist upon and implement, working with the Congress but also using executive authority to

ensure that that is an orderly transition. And we're working right now, the White House staff is, on a series of executive orders that will enable

that orderly transition to take place even as the Congress appropriately debates alternatives to and replacement of Obamacare.

UNIDENTIFIED REPORTER: Sounds like you're talking about some of these provisions might stay in place until there's a new full plan.

RYAN: Jake, we've been saying all along, we don't want to pull the rug out from people while we're replacing this law. The point is, in 2017 we don't

want people to be caught with nothing. We want to be sure that there's an orderly transition so that the rug is not pulled out from under the

families who are currently struggling under Obamacare while we're bringing relief. Yes.

UNIDENTIFIED REPORTER: On the ACA repeal and replace, can you give detail on the executive actions that are planned? And how does that square with

the complex budgetary process that's also involved?

RYAN: They're hand in glove. So we're working on the legislative process right now. As you know, the Senate is going to be acting first next week,

then the Congress will follow, which gives us the budget resolution we need to bring the legislation through while the administration works on the

executive orders that they're talking about to deliver the kind of transition relief that we've been talking about.

The problem is, just remember, Obamacare has failed, families are hurting, they broke the healthcare system. It's a string of broken promises. So

we're going to make sure that we have an orderly transition to a better system so we can get back to what we all want which is lower cost health

care, more choices, so that families can actually get affordable health care at a decent price with more choices, more competition, and not a

costly government takeover that has really bankrupted this health care system and left families struggling.

(CROSSTALK)

PENCE: If I can respond to that. I'd be happy to. We're working out right now with the White House staff and in concert with legislative

leadership, a two-track approach to ensuring that it is an orderly transition as the president-elect has -- you read his tweet this morning

that he has admonished the Congress to be careful and I reiterated that before the Republican conference today.

Look, we're talking about people's lives. We're talking about families. But we are also talking about a policy that has been a failure virtually

since its inception. And we intend to, over the course of the coming days and weeks, to be speaking directly to the American people about that

failure, but about a better future we can have in health care, a future that is built not on growing government, not on mandates, not on taxes, but

also -- but rather a future that's built on giving the American people more choices in health care, allowing the power of the free marketplace to flow

in.

But the transition to that, we will work out in a way that reflects the compassion of the president-elect and the compassion of every member of

Congress to see to it that we do that in a way that serves the best interests of the American people. But look, I think what's clear here is

the American people have spoken. They want to see us repeal and replace Obamacare. And today, my message to members of Congress is that we are

going to be in the promise-keeping business. And the first order of business is to keep our promise to repeal Obamacare and replace it with the

kind of health care reform that will lower the cost of insurance without growing the size of government.

RYAN: Thanks, everybody. Appreciate it.

(CROSSTALK)

UNIDENTIFIED REPORTER: How are you going to prevent private insurers from pulling out?

UNIDENTIFIED MALE: How's the Senate gym?

MANN: The first order of business is to repeal and replace Obamacare. The words of U.S. Vice President-elect Mike Pence after meeting with Republican

lawmakers in Washington. You heard Pence attack the enormous health insurance reform, quoted President-elect Trump calling for an orderly

transition to something better.

[10:40:05] It will be careful or rather it will be important he said to be careful as we do that. That really is the key point. The Republicans do

not agree on what they want to create in place of Obamacare. That is the biggest hurdle they face right now.

Joining us now is Matt Lewis, senior contributor of the "Daily Caller" and CNN political commentator.

Thanks so much for being with us. What did you hear there? A bold statement of resolve or a statement of -- well, they're treading water for

the time being?

MATT LEWIS, CNN POLITICAL COMMENTATOR: No, I think it was positive. I think a few things. Number one, they obviously wanted to make it very

clear that Obamacare is failing, Speaker Ryan and Vice President-elect Pence both reiterated the problems of Obamacare. They want to remind

everyone of the troubles there.

Secondly, I think, is the ambition that this is a top priority that they're going to hit the ground running and I think the last thing that I really

noticed there is these are really good spokesmen. Now we don't know how this is going to work out, this could be a disaster, but in terms of the

optics, in terms of communicating the conservative vision for health care reform, I think Paul Ryan and Mike Pence both very good communicators at

stressing this.

You heard Paul Ryan talk about we don't want to pull the rug out from under American families. That's the kind of thing, if you're out there, if

you're worried about losing health care, I think this would have a calming effect on you.

MANN: Let me ask you a very simple question. The slogan has been repeal and replace. There's been a suggestion that in fact what we're going to

see is repeal and delay. And in fact we heard from the vice president- elect saying it's really important to be careful and from Paul Ryan, we don't want to pull the rug from under Americans.

Are they going to be able to do this quickly or they're going to end up only being able to make clear that they really don't want Obamacare on the

books and then spend a year or two or perhaps even more trying to replace it?

LEWIS: That's going to be the really big question. Because if you're a conservative Republican, it's a lot easier to repeal Obamacare than it is

to replace it. So repealing Obamacare means cutting costs. Replacing Obamacare would possibly entail adding cost to the budget. And so if you

pair them together, if you do it at the same time, if you repeal and replace simultaneously, not only do you avoid the possibility that people

could be without coverage, but you make it easier for Republicans to vote on something that might be budget neutral.

If you try to do it one at a time, you could find yourself in a predicament where you have repealed but cannot have the vote -- enough votes to

replace.

MANN: There is another issue which is the narrative. And I think, correct me if I'm wrong, we were hearing the emerging narrative. We talked about

what good communicators they were. What many people are expecting is a certain amount of confusion and chaos as they try and do these enormous

things. The easy repeal, the difficult replace. That's going to leave potentially a lot of people wondering what's going to come next? It's going

to leave important institutions unsure about how to invest.

Donald Trump tweeted a few hours ago, don't forget to blame Obamacare. The problem is Obamacare. It sounds like they're going to tear down the

structure of Obamacare and then keep blaming it for the confusion that follows.

LEWIS: I think we're going to see partisanship on both sides. The Democrats' strategy is going to be to try to talk about how Republicans are

being dangerous and risky. Democrats are going to demagogue this and play the scare game, and I think Republicans are going to go out of their way to

remind people how bad Obamacare was. So there's going to be a lot on both sides of the aisle, people trying to score points and remind the public of

how scary and dangerous the other side is.

I think the good news for Republicans is if you look at the people who are heading this up, you've got Tom Price, who's a doctor and a former chairman

of the Budget Committee, who is head of HHS. He's going to be charged with implementing a new law. You've got Paul Ryan, who's the speaker of the

House, who's a policy wonk, a budget wonk, who's going to be -- sort of helping craft the legislation. Then you've got Mike Pence, a former member

of Congress, who's very close with Price and Ryan, who's going to be the liaison to the White House.

So they've got the right players in place. They could still bungle this. It could go horribly wrong. But they've got the right people, I believe,

in charge of making this happen.

MANN: Now it's really -- it's really intriguing because you mentioned those figures, and you were entirely right to bring up every one of them,

but there was one name missing from your list, and that was Donald Trump. Is it clear what the president-elect wants beyond the bumper sticker slogan

of repeal and replace?

LEWIS: No, it's not. In fact, Donald Trump has been on all sides of the health care debate in the past supporting single-payer, you know, which

most conservatives would gasp at. But this doesn't concern me greatly.

[10:45:03] You look at past presidents like Ronald Reagan who essentially laid out broad -- a broad vision and then had other people come in and deal

with the details and implement it. So I think it's very fair to say that Donald Trump is not in the weeds, is not a policy wonk, doesn't probably

care about all the specifics of this.

The question is, will the people he has tasked with implementing the actual details be able -- be competent and be effective at doing it?

MANN: We'll be watching. Matt Lewis, thanks so much for talking with us.

LEWIS: Thank you.

MANN: Meanwhile, another very contentious debate in Washington, Russian hacking. President-elect Trump appears to be at odds with the very

agencies that will provide him with intelligence. Trump accusing them on delaying a briefing on cyber attacks in Russia, something the officials

themselves are denying.

Jason Carroll explains.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN NATIONAL CORRESPONDENT (voice-over): President-elect Donald Trump striking a conspiratorial tone yet again against U.S.

intelligence. In a new cryptic tweet Trump writes, "Intelligence briefing on so-called Russian hacking was delayed until Friday. Perhaps more time

needed to build a case. Very strange."

But U.S. intelligence officials say there's no delay. They say the meeting was always set to take place later this week, adding, "President Obama has

yet to receive the full briefing on Russian hacking."

Trump vowed to release inside information he says he has about the hacks by today. Democratic Congressman Adam Schiff responding to Trump's claim,

tweeting, "This week real Donald Trump promises new info about Russian hacking only he knows. Next week what really happened at Roswell."

One U.S. intelligence official telling CNN the director of National Intelligence, James Clapper, was not scheduled to be in New York City where

Trump is until later in the week.

SEAN SPICER, INCOMING WHITE HOUSE PRESS SECRETARY: Later this week they will -- once the final report on the current situation in Russia is made

final by the intelligence community, they will ask for -- they have asked for a briefing from senior members of the intelligence community.

CARROLL: Officials noting that until now Trump's team has not scheduled a meeting with the heads of top intelligence agencies. By contrast,

President Obama met with the intelligence leaders shortly after being elected in 2008.

For months Trump has continued to cast doubts over the conclusion reached by 17 U.S. intelligence agencies that Russia was behind the election cyber-

attacks.

DONALD TRUMP (R), PRESIDENT-ELECT: It could be somebody else. It could be Russia, but it could also be China. It could be lots of other people. It

could also be somebody sitting on their bed that weighs 400 pounds, OK. Maybe there is no hacking.

CARROLL: A conclusion the CIA director says is ironclad.

JOHN BRENNAN, CIA DIRECTOR: I would suggest to individuals who have not yet seen the report, who have not yet been briefed on it, that they wait

and see what it is that the intelligence community is putting forward before they make those judgments.

(END VIDEOTAPE)

MANN: Jason Carroll reporting.

You're watching CNN. The news continues just head. Stay with us.

(COMMERCIAL BREAK)

[10:50:25] MANN: You're watching CNN and this is CONNECT THE WORLD. I'm Jonathan Mann. Welcome back.

Britain's top diplomat to Europe has come out swinging at his own government after quitting his job Tuesday. Ivan Rogers, the UK's

ambassador to the EU bluntly blasted the ill-founded arguments and muddled thinks over Brexit. And this is from a man meant to be leading the country

to its talks to get out of the EU. So if he's been finding it confusing, what about the rest of us?

CNN's Nina Dos Santos is with us now live from London to explain.

Nina, Sir Ivan didn't just quit, he did it in a very public and angry way. What can you tell us?

NINA DOS SANTOS, CNN MONEY EUROPE EDITOR: Yes, I supposed you could say, Jonathan, that he staged a one-man Brexit here in spectacular fashion from

what is normally a very neutral and mild spoken civil service. This is somebody who would have worked behind the scenes here, not used to going

public. But he was also the subject of a big leak about a month ago himself when his views were made public to a British news organization

showing that he had advised the government that it would probably take 10 years rather than the official stance of two to get those Brexit

negotiations fully sorted out, and to have some kind of trade deal in place to replace the relationship that the UK has with the 27 other member

states.

So here's more of what he said in that note to staff that was leaked yesterday. He's saying that the country really needs to beef up its

negotiating position, quote, "serious multilateral negotiating experience is in short supply," he says in Whitehall, that means the government, and

that is not the case back in Europe in the commission or in the council.

And speaking to his staff, he goes on to say senior ministers also need from you detailed, unvarnished even while this is uncomfortable, as nuanced

understanding of the views, interests, and incentives of the other 27 countries.

Now the government has tried to downplay Sir Ivan's resignation saying that some Euro skeptic, members of the government or the Conservative Party

saying that he's not irreplaceable. They'll find somebody else to fill his shoes soon.

But the timing is very unfortunate here, Jonathan, because this comes just about two months before Teresa May was planning on enacting that Article 50

part of the Lisbon Treaty which would mean that she would formally start to hand in her resignation of the EU. And so this definitely span into the

works. This is a country that is looking for around about 300 to 500 specialist trade negotiators according to some reports and they've just

lost the most senior one they have yet.

MANN: Yes. Canada is offering to volunteer to help. How much trouble is Brexit in?

DOS SANTOS: Yes. Canada, New Zealand, there's all sorts of countries that the UK government is reportedly trying to reach out to, trying and get some

negotiating experience. Remember that this is a country that hasn't had to renegotiate a free trade deal for the best part of 30 years. It's a whole

generation of trade lawyers that the government needs to find. Also the various departments beefing up their economic know-how as well and reaching

out to tempt economists away from big banks so I hear from various sources.

When it comes to Brexit, well, there's another potential hurdle that Teresa May has to get over, and that is a Supreme Court ruling that's set to

happen this very month. The Supreme Court in the UK is set to decide whether or not she needs to consult parliament before she can actually hand

in that Article 50 notification to her EU fellow member states in March. So if parliament has to be consulted that could throw off the timing.

When it comes to Sir Ivan's resignation, that's probably not going to stop things. There are other senior members of the government and also the

civil service who could be called upon, but it certainly throws a rift between the civil service which is of a significant neutral part of the

government here and the government itself that is elected -- Jonathan.

MANN: Nina Dos Santos, thanks very much.

Coming up.

A Saudi music video goes viral. The lyrics are catchy, but the song also carries a powerful political message.

(COMMERCIAL BREAK)

[10:56:03] MANN: In today's "Parting Shots," a new Saudi music video charms millions with its catchy lyrics, but the song also makes a

provocative statement about women's rights in the conservative kingdom. Watch this.

I'm Jonathan Mann, this has been CONNECT THE WORLD. Thanks for joining us.

(COMMERCIAL BREAK)

END