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White House Aircraft Carrier Claim Proves False; Britain's Prime Minister Plans for Early Elections in June; Jon Ossoff Narrowly Missed out on Preventing Runoff in Georgia. Aired 8-9a ET

Aired April 19, 2017 - 08:00   ET

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


[08:00:28] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream.

Now, it was seen as a White House show of force to North Korea, but it turns out an aircraft carrier was not headed to the Korean peninsula after

all. CNN asks the U.S. vice president about the confusion.

A vote to decide on a vote. Britain's prime minister puts her plans for an early election to parliament.

And China approves new trademarks for Ivanka Trump's company, but the timing raises some serious questions.

And we begin with the fresh warnings U.S. is giving North Korea in the face of ever growing nuclear threats and the major bungle that could undermine

America's reassurances to partners in the region.

Now, U.S. Vice President Mike Pence has departed Japan and is now on his way to Indonesia. And before leaving, he spoke to troops on board the USS

Ronald Reagan. He warned North Korea that the U.S. and its allies are prepared to respond to any potential attack with, quote, overwhelming

force. But it turns out, one of President Trump's warnings last week that an armada was on its way to the

Korean Peninsula was not accurate. We have more on that in just a moment.

Meanwhile, new video shows a North Korean celebration to mark the birthday of founder Kim il-Sung over the weekend.

The ceremony culminates in what appears to be a video simulation of the U.S. going up in flames.

Now, CNN's Dana Bash spoke exclusively with Vice President Mike Pence. She joins us now live from Tokyo. And Dana, first, that so-called armada of

U.S. warships that Trump claimed was heading to North Korea, we learned that it was nowhere near North Korea. so, how did the vice president

address the misleading messaging here?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: It was so interesting because we were talking, sitting on a different aircraft carrier, one, of course, that

is here in japan, the USS Ronald Reagan. And there was no denying that he was -- it was clear he knew about the controversy. It was hard to avoid

headlines all over papers and television, not just at home, his home in the U.S., but here in Asia.

So I started by asking him about that.

(BEGIN VIDEOTAPE)

BASH: We are in Japan on the USS Ronald Reagan. I want to ask about something, first of all, that's making headlines in the United States and

here right now. And that is that last week, the U.S. military and the administration announced that another ship, the USS Carl Vinson, was

heading toward the Korean Peninsula. And the White House said it was a powerful deterrent, vis-a-vis North Korea.

And now we learn that it wasn't. In fact, it was going the other direction. So, were these misleading comments deliberate?

PENCE: Oh, I think not. Which have an extraordinary commitment of U.S. Forces in the region. The Carl Vinson and that battle group are be deployed

to the Sea of Japan and will likely arrive here in the coming weeks.

But the presence of U.S. forces, as I saw first-hand in South Korea, more than 30,000 personnel. Here in Japan, more than 50,000 personnel aboard the

USS Ronald Reagan and seeing these extraordinary soldiers, sailors, airmen and Marines gives me great confidence that the United States presence in

the Asian Pacific is strong; and under President Trump's leadership it will be stronger still.

BASH: Let's talk about North Korea and what you've been saying in the region. That the strategy of the U.S. will be to reach out to allies in the

region and that the best path to dialogue, you were saying, is through family of nations. I have to tell you, that sounds a lot like the six-party

talks back in the Bush administration that failed. How is your policy different?

PENCE: I think that the president has made it very clear that, after more than two decades of failed dialogue and even what was called strategic

patience, that the patience of the United States and our allies in this region has really run out. And that we are now going to begin to take such

measures, diplomatically and economically, to isolate the regime in Pyongyang.

The encouraging news, Dana, for anyone looking on is that because of President Trump's leadership, we're not only seeing our allies in South

Korea and Japan and in the wider world standing with us. But China has taken steps now to economically isolate North Korea. Given the fact that

China represents more than 80 percent of the exports from North Korea is enormously important to the economic marketplace. We believe that this is

an important step forward.

[08:05:44] BASH: So I must want to try to drill down on the diplomatic side of this a little bit more. Will the U.S. actually sit down in any way,

shape or form, for diplomatic negotiations with the North Koreans?

PENCE: You know, whether you go back to the agreed framework of the 1990s or the...

BASH: Not that. Looking forward. Whatever version it would be. Will there be any negotiating? Whether it's direct -- I mean, you can answer that;

could you see a direct negotiation with North Korea?

PENCE: Not at this time. The policy that President Trump has articulated is to marshal the support of the allies in the region here in Japan and South

Korea, and nations around the world and China, who have taken the position now for decades of a nuclear-free Korean Peninsula.

(END VIDEOTAPE)

BASH: So you can see, Kristie, that this is nothing new. And when I say this, it is how incredibly vexing the idea of how to penetrate North Korea

and figure out a way diplomatically, of course we're talking about here, to get them to stop its nuclear program. It has alluded the Obama

administration, the Bush administration before it, the Clinton administration before that and now the Trump administration is heading full

steam ahead into trying to figure out a different way. And it's not entirely clear that they have a real handle on the right way to do it which

you can't blame them. It's not so easy when you have a rogue regime like North Korea absolutely determined and confident in their right to have such

a nuclear program.

LU STOUT: You're right. It's not easy when you're dealing with a rogue nation like North Korea, but still, you were pressing for more clarity on

the diplomatic way forward from the vice president. He says that the end of strategic patience is over. We heard that before from other Trump

officials. Rex Tillerson, he says no to direct talks. So, what will be the diplomatic approach taken in regards to North Korea here?

BASH: You're right. That's exactly what I was pressing him on, to get answers to that.

I think the most that I got is a little bit more meat on the bone with regard to what the administration is hoping for from China. Again, using

and hoping -- hoping China uses its leverage, rather, with North Korea is not a new diplomatic approach for the United States. I mean it's been

tried before and it hasn't worked.

What they're hoping inside the Trump administration is that they have a bit more leverage

given President Trump's really tough talk against china during the campaign, and also the fact that they're signaling more willingness to

potentially try to punish China if it doesn't deal with the North Korea issue.

But they're being very vague right now as they try to figure out just how far they want to go

with China as well, Kristie.

Vague words and stern warnings, as always, directed towards North Korea. Dana Bash reporting live from Tokyo. Thank you so much for that.

LU STOUT: Now, the growing threat in North Korea has military strategists working overtime. They have busy assessing the military threat as well as

the damage it could cause.

Now Paula Hancocks talked to the experts in South Korea.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: North Korean special forces attack a mockup of South Korea's presidential compound, propaganda

footage of what Pyongyang claims it could do to Seoul if provoked.

As Washington insists, all options are on the table. South Korean officials warn the military option is unpalatable. One man involved in

calculating the casualty impact says they're working from at least a dozen different scenarios including nuclear attack.

KIM TAE-WOO, KONYANG UNIVERISTY: If North Korea use the Hiroshima bomb- sized nuclear attack against Seoul City, then within one month over 500,000 people will die, and after that

more people continue to die because of the side effects.

HANCOCKS: As Kim Jong-un watches special commandos train, one of his top diplomats warnings nuclear war could break out at any moment, a well used

threat that few in South Korea believe would actually happen.

Fears of conventional or chemical attack are more realistic. South Korea's defense ministry believes Pyongyang has a chemical stockpile of up to 5,000

tons.

PARK HWEE-SHAK, PROFESSOR: I don't think U.S. is fully prepared to cope with all the

side effects of the preemptive strike.

HANCOCKS: But opinion is split in South Korea. Some are optimistic that Kim Jong-un may not even react to an American preemptive strike.

CHUN YUNG-WOO, KOREAN PENINSULA FUTURE FORUM: I see less than 1 percent chance that North Korea responds. If he responds with artillery

bombardment, then he knows that within a matter of days or weeks, North Korean regime will no longer exist.

HANCOCKS: A 2004 study by the joint chiefs of staff estimate some 2.3 million people could be killed or injured in Seoul and its surrounding

areas within the first 24 hours. Now, these are details from a confidential report leaked by a deputy parliamentary speaker. He says he

wants to make sure that the U.S. fully understands the consequences of any military action.

Paula Hancocks, CNN, Seoul.

(END VIDEO CLIP)

LU STOUT: Now, British MPs are preparing for battle after a snap election took both the public and politicians by surprise. Now, leaders were

already in campaign mode during Wednesday's parliamentary session. Leading the fight, Prime Minister Theresa May and her main opponent Labour

Party leader Jeremy Corbyn.

Now, take a listen to their exchange in parliament just a short time ago.

(BEGIN VIDEO CLIP)

THERESA MAY, BRITISH PRIME MINISTER: There are three things a country needs: a strong economy, strong defense and strong, stable leadership.

That's what our plans for Brexit and our plans for a stronger Britain will deliver. And that's what the Conservative Party will be offering up this

election. And we will be out there fighting for every vote; whereas as the right honorable gentleman opposite would bankrupt, bankrupt our economy,

weaken our defenses and is simply not fit to lead.

JEREMY CORBYN, LABOUR PARTY LEADER: We welcome the general election, but, but -- but this is a prime minister who promised there wouldn't be one, a

prime minister who cannot be trusted.

(END VIDEO CLIP)

LU STOUT: Now, lawmakers are to vote on whether to approve an election for June 8. They're currently debating that motion right now.

Nic Robertson is standing by for us outside the prime minister's residence on 10 Downing Street. He joins us live. And Nic, how and how well did

Theresa May defend her decision to hold this snap election in June?

NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: Well, she was really up against sort of two main challenges, if you will. One, Jeremy Corbyn,

leader of the Labour Party. And the polls suggest that Corbyn and his party are doomed to do very, very badly in these elections.

The arguments that he was using: the economy, health service, the education saying that the Conservative Party hadn't delivered on the economy, they

are arguments that he's been using over the past months, yet his party's popularity continues to sag.

So, you know - and that sort of exchange that we heard today, it would seem that Theresa May is on track as the polls predict because he's not bringing

any new arguments to the table.

The Scottish National Party, their lead MP, if you will, Angus Robertson, challenged the prime minister. The prime minister has been - said she's

going to refuse to do TV debates in this election. She said that prime minister question time is when the - essentially when the questions are

asked routinely and people can judge on that, the Scottish National Party MP Angus Robertson said why was she afraid of running scared from the

leader of the Scottish National Party, Nicola Sturgeon? That would be the strength or challenge coming from the Scottish National Party.

It's unlikely the Conservatives could look to winning additional seats in Scotland, so essentially I think at the moment what we're seeing is that

Theresa May is on course at the moment, it appears, judged by the polls, which we have to remember have been notoriously unreliable, but does seem

to be on course to increase her majority. That's if we go by what the polls are

saying, caveat they're often inaccurate.

But on the arguments that were made in prime minister's question time today, they're the arguments we know, they're the arguments that the public

has already, if you will, judged these politicians on.

LU STOUT: And some context here, leading up to this moment, the prime minister may had previously said elections would only be held when

parliament's term expires in 2020. So, why did she change her mind? Is there a bit of political opportunism here?

[08:15:01] ROBERTSON: That's what critics are saying, absolutely, because she's doing so well in the polls, because Jeremy Corbyn's leadership of

Labour is leading them to do so badly in the polls. This is an opportunity to increase her majority. It's currently 17.

She has felt weakened by the challenges she's had in this process. She said she would deliver the triggering Article 50 by the end of March. It

was always clear to any canny politician that she certainly fits that bill that the Easter break would be an opportunity to pause, having triggered

Article 50, to reflect on how that process went and to know that there was a window

of opportunity before the real Brexit negotiations actually begin at the beginning of June to call for a general election. And she said she appears to have done that on the

case that she has said that this wasn't necessary, that she wouldn't be doing that, and she said that as recently as a month or so ago.

She does have to face criticism there. And wouldn't be doing that. She said that as recently as a

month or so ago. She does have to face criticism there and her critics will potentially be proved right, that while she says she's doing this for

the national interest, she's actually doing this for the betterment of the Conservative Party. But the reality was, trying to have a general election

as you're beginning that general election process as the toughest part of the Brexit negotiations are about to happen late 2019 or mid-2019, that

you would be in a position of having sort of offered some pain to the British public over Brexit. They wouldn't get everything they want, and

none of those are longer-term gains and that was always going to be a weak hand going into the election.

So, this calculation always looked a likely one and perhaps the polls favorably towards her

tipped May to making this decision - Kristie.

LU STOUT: All right, Nic Robertson reporting live from Downing Street, many thanks indeed for that.

Now, meanwhile, a heated election has come to an end in Indonesia. And up next, the results from that vote, which was seen as a test of religious

tolerance in the Muslim majority nation.

Plus, U.S. Republicans avoid a major loss for now. What's next in the race for a congressional seat in Georgia?

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong, welcome back, you're watching News Stream.

Now, in the capital of Indonesia, a big election upset for the incumbent governor of Jakarta. The challenger, Anies Baswedan, a Muslim candidate is

emerging as the winner in the run-off vote. Now, he was backed by hard- line Islamic groups. And the race was largely seen as a test of tolerance in the world's most populous Muslim majority nation.

The incumbent, as known by his nickname Ahok, has conceded defeat, though official results

won't be in for two weeks. The ethnic Chinese christian is currently on trial for blasphemy, and there ha been huge protests against him.

Now, another vote, this one in the United States, has put the Republican brand under President Trump to the test. Now, the party nearly lost a

house seat that has been reliably Republican for decades. Democrat Jon Ossoff just missed the more than 50 percent he needed to win the seat

outright. And he will now face Republican Karen Handel is a June runoff.

Now, our senior Washington correspondent Joe Johns joins us now with more on the story. And Joe, we know that President Donald Trump has taken a

very keen interest in this race in Georgia. Tell us why.

[08:20:22] JOE JOHNS, CNN CORRESPONDENT: He certainly has taken a very keen interest. And it's very important because it's seen as, among other

things, a window on the midterm elections next year when a lot of the seats in the United States congress are up for grabs.

Today, last night I should say, Republicans were able to avoid what would have been a humiliating situation in a conservative district in Georgia.

Democrats now hoping that it was, in fact, a window on what could happen next year.

(BEGIN VIDEOTAPE)

JON OSSOFF, DEMOCRATIC CONGRESSIONAL CANDIDATE: You all ready to flip the 6th?

JOHNS (voice-over): The closely-watched special election for Georgia's 6th District headed for a run-off with both sides, claiming victory, after 30-

year-old political newcomer Jon Ossoff fell just short of an outright win in a district held by Republicans since 1979.

OSSOFF: There is no doubt that this is already a victory for the ages.

KAREN HANDEL, REPUBLICAN CONGRESSIONAL CANDIDATE: On June 20, we keep the 6th District red and kick a little Ossoff.

JOHNS: Ossoff will face off against Republican Karen Handel in June for the seat formerly held by Trump's health secretary, Tom Price, in a contest

seen as a referendum on Trump's presidency and a preview of next year's mid-term elections.

President Trump taking credit for the results, hailing the run-off as a win despite Ossoff's strong showing, tweeting, "Despite major outside money,

fake media support and 11 Republican candidates, big 'R' win with run-off in Georgia. Glad to be of help."

The president was personally invested in the election, bashing the Democratic contender in a barrage of tweets and even recording a robocall

to urge Republicans to get out and vote.

TRUMP (via phone): Ossoff will raise your taxes, destroy your health care, and flood our country with illegal immigrants.

JOHNS: President Trump beat Hillary Clinton in this Republican stronghold by just 1 percent last November, compared to Mitt Romney's decisive victory

in 2012, prompting Democrats to target the seat, pumping $8.3 million into Ossoff's campaign. This election comes as the president signs an executive

order targeting highly-skilled foreign workers that he says are taking jobs from Americans.

TRUMP (on camera): We're going to defend our workers, protect our jobs, and finally put America first.

JOHNS: Mr. Donald Trump also touting the successes of his presidency.

TRUMP: No administration has accomplished more in the first 90 days.

(END VIDEOTAPE)

JOHNS: To be clear, Karen Handel does hold the advantage in that runoff election in June, a very uphill climb for Jon Ossoff despite his strong

showing last night, Kristie.

HAYES: Karen Handel is a GOP front-runner in this race, it's put in a very interesting position, because this race is, as you point out in your

report, it's a preview of the midterm elections. It's also being framed as a referendum on Donald Trump and his presidency. So, will Handel align

herself closely with Trump or keep a safe distance from him?

JOHNS: Well, it's pretty clear that in the past she has taken a number of positions in line with President Trump, including his position on building

a wall in the southern U.S. border, defunding Planned Parenthood and abolishing Obamacare as we know it and replacing it.

So, she's taken a number of positions in line with the president. And once again, it is just a rock solid Republican district, Trump country,

essentially, highly unlikely that she'll run against this president in this race.

HAYES: Yeah, Trump popularity put to the test in Trump country, as you put it. Joe Johns reporting for us live from the White House. Thank you, Joe.

Now, there is another critical election coming up in France. Voters are getting ready for Sunday's first round in the presidential election. So

far it's been an unpredictable race. And as Jim Bittermann reports, the region of Lorraine could play a major role in deciding the country's

political landscape.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN INTERNATIONAL CORRESPONDENT: It is the French Rust Belt, played-oout coal mines and abandoned steel plants in the

northeast corner of the country just a few miles from Germany and Luxembourg. Tens of thousands used to work in these mills that once made

the Lorraine region rich and desirable. Now they stand blackened and silent, symbols to the forces of globalization which sent the jobs

elsewhere.

Perhaps it's not surprising that those left behind to scrape together a living are not easy on their political leaders.

Around here, French presidents from both sides of the political spectrum are regarded as, and sometimes even called, traitors. And that's because

for decades in this part of France, people have been promised that they would be protected from the kind of globalized trade that would eliminate

their jobs and send them overseas. It didn't happen.

After decades of voting Communist after World War II, the town of Amneville began voting

to the right in the mid-1960s as the local mills began to decline. And gradually, the vote has become

more extreme. In the past four presidential elections, the extreme right National Front came in first

in the first voting round.

It's not hard to find locals who just like the National Front blame their job problems and job losses on politics, the European Union, and

immigrants.

UNIDENTIFIED FEMALE (through translator): I vote Le Pen because she kick out all the

Arabs. They give so much to immigrants that we don't get anything.

UNIDENTIFIED MALE (through translator): They had promised money for steel works. In the end, it never came through, never did anything. Even the

Sarkozy days.

UNIDENTIFIED FEMALE (through translator): I vote Le Pen. I have no interest in other candidates.

UNIDENTIFIED MALE (through translator): We're going to change just like the Americans.

BITTERMANN: As the Marie Chevalier Music Hall, as senior citizens gather for a snack and a concert, the conversation this month is dominated by the

upcoming elections. This group, many of whom used to work in the steel mills, is fertile ground for the extreme right, something even those

working for one of the mainstream parties have to acknowledge.

UNIDENTIFIED FEMALE (through translator): Indeed I hear people say I am going to vote

National Front. But I think that taking shelter behind political radicals is a catastrophe and it's not a solution.

BITTERMANN: It's not like mainstream politicians haven't tried to find solutions to the economic problems here. One Amneville mayor partly

insulated the town from the region's job losses by building a sports and entertainment complex that includes the world's longest indoor ski run.

But the current mayor understands why his fellow citizens still might follow the lead of the United States.

ERIC MUNIER, AMNEVILLE MAYOR (through translator): Everywhere it's the same. When people are in extreme difficulties and have the impression

traditional politics are not responding to their needs, they're always tempted by extreme solutions.

BITTERMANN: The similarities between this part of France and the Rust Belt in the United

States are undeniable. Unemployment is high, immigration is frequently blamed. People feel abandoned and betrayed by the mainstream politicians

and are tempted to register a protest vote. In a few days we'll know whether French voters will follow a similar path to that of the Americans

when they elect their next president.

Jim Bittermann, CNN, in the French Lorraine region.

(END VIDEOTAPE)

ANDERSON: You're watching News Stream. And still to come, CNN's exclusive interview with the most powerful man in Turkey. Now, President Erdogan

talks about a controversial reform package passed in a referendum that gives him almost unchecked power.

(COMMERCIAL BREAK)

(HEADLINES)

[08:32:11] LU STOUT: Now, still in the U.S., the manhunt for the so-called Facebook killer ended on Tuesday. Police say Steve Stephens shot and

killed himself after a police chase in the state of Pennsylvania.

Stephens killed 74-year-old Robert Godwin, the man you see on the right, Sunday in Cleveland, Ohio. And he posted video of the apparently random

killing on Facebook. It took two hours for Facebook to take the video down.

Now, Facebook's founder and CEO Mark Zuckerberg acknowledged the social network has work to do to prevent this kind of thing from happening again.

(BEGIN VIDEO CLIP)

MARK ZUCKERBERG, FACEBOOK CEO: We're also working on building common ground, not just getting more different opinions out there, but also

helping to bring people closer together. There's a lot to do here. We have a full roadmap of products to help build groups and community, help

build a more informed society, help keep our communities safe, and we have a lot more to do here. We're reminded of this this week by the tragedy in

Cleveland. And our hearts go out to the family and friends of Robert Godwin Sr. And we have a lot of work to do and we

will keep doing all we can to prevent tragedies like this from happening.

(END VIDEO CLIP)

LU STOUT: A lot more work to do, absolutely.

Now, the Turkish President Recep Tayyip Erdogan plans to meet with the U.S. president next month. The Turkish foreign minister made that announcement

Donald Trump was one of the few world leaders who congratulated Mr. Erdogan after the referendum.

Voters passed a reform package that gave Mr. Erdogan new and nearly unchecked power. In a CNN exclusive, he sat down with Becky Anderson for

his first interview since that vote.

(BEGIN VIDEOTAPE)

RECEP TAYYIP ERDOGAN, TURKISH PRESIDENT (through translator): There's something that I say in the squares over and over again. This is not a

system belonging to Tayyip Erdogan. I am a mortal being. I can die at any time.

Therefore, to have a system for a mortal being who could die at any moment, is that possible? The system represents a change, a transformation in the

democratic history of Turkey. That's the purpose of it. We are now removing a dual-head system.

At the moment, the prime minister is head of the executive -- head of the government but as well as being the leader of a political party. What we

are saying is let's get rid of this duality and have a system where we have one president so that we have a much stronger executive position.

[08:35:12] ANDERSON: And with the deepest of respect, your greatest critics will say that this is the march towards dictatorship. What's your response?

ERDOGAN (through translator): For a dictatorship to exist, you don't necessarily have to have a presidential system. Here we have an election, a

ballot box. If you say a ballot box produces a dictator, that will be unjust, unfair to the ballot box process and to those who cast their

ballots in that box.

(END VIDEOTAPE)

ANDERSON: And you can see Becky's full interview with the Turkish president. It's coming up in less than three hours from now, 6:00 p.m. in

Ankara, 11:00 p.m. here in Hong Kong, only on CNN.

Now, Venezuela is bracing for what's being called the mother of all protests in the coming hours. Opposition leaders have called for anti-

government demonstrations throughout the country. And we've seen weeks of violent clashes between protesters and riot police. So, how did Venezuela

find itself in such turmoil? Rafael Romo reports.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN INTERNATIONAL CORRESPONDENT: Turmoil in Venezuela has been exacerbated recently by three major incidents happening in a short period

of time. First, on March 29th, the Venezuelan supreme court dissolved the parliament, transferring all legislative powers to itself. The move

effectively meant the three branches of the Venezuelan were controlled by the ruling United Socialist Party.

The opposition was outraged. They called the move a coup. The decision was reversed three days later, but protests had already erupted.

On Friday, April 7th, the government notified main opposition leader Henrique Capriles that he had been banned from doing any political work for

15 years. The 44-year-old governor who has run for president twice said the government was again acting like a dictatorship.

Then, on April 10th, after several days of violent protests, a 20-year-old student died in the city of Valencia after he was shot in the neck during a

demonstration when police opened fire. He was one of several young people who have recently died in clashes with security forces. Their deaths have

brought even more people out into the streets.

The opposition also complains that a state and local election should have been held months ago and that the government is dragging its feet. A

collapsed economy that has led to shortages of food and medicine for years has also made for a very volatile situation on the streets of Caracas and

other Venezuelan cities -- a combustible mix that has once again caught fire.

Rafael Romo, CNN.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And up next, questions are emerging about Ivanka Trump and her business. Why China's provisional

approval of three trademarks is raising some concern.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. Now, Ivanka Trump is facing new questions about her company and its business dealings in China. Now, CNN learned that

Beijing gave her company provisional approval of three trademarks on April 6. Now, that is the same day she had dinner with the Chinese president at

her father's Mar-a-Lago estate.

Tom Foremand reports.

(BEGIN VIDEOTAPE)

[08:40:10] TOM FOREMAN, CNN CORRESPONDENT (voice-over): When President Trump's granddaughter sang in Mandarin during the China-U.S. summit

meeting, the video was a hit back in the People's Republic, but the real story is how her mother's business is booming there, too.

IVANKA TRUMP, DAUGHTER OF PRESIDENT TRUMP: White diamonds flanking the stone on either side, and it's set in 18-karat yellow gold.

FOREMAN: This year alone, first daughter Ivanka Trump's company has seen at least two new trademarks approved by the Chinese, another one

provisionally, adding to 16 she already holds, as the Associated Press first reported. True she was hiring had Chinese labor and expanding before

the election.

ZHANG HUARONG, CHAIRMAN, HUAJIAN GROUP (through translator): Ivanka is a very good client, but, of course, I never imagined her father would become

president.

FOREMAN: Still, since the start of the year, her father's companies had seen 35 other trademarks preliminarily approved by China, too. Ivanka

says...

I. TRUMP: Any growth is done with extreme caution.

FOREMAN: Her company will neither confirm nor deny those numbers to CNN, instead issuing a statement saying, "We have recently seen a surge in

trademark filing by unrelated third parties, trying to capitalize on the Trump name; and it is our responsibility to diligently protect our

trademark."

I. TRUMP: Happy shopping.

FOREMAN: Nonetheless, that's big business, especially considering how much the Trump family has repeatedly brushed away concerns about politics

affecting their financial interests.

I. TRUMP: I don't think it matters. This is so much more important and more serious. You know, that's the focus.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I think what Ivanka's trying to say is, who cares? Who cares? This is big league stuff. This is our

country.

FOREMAN: An attorney for Ivanka Trump says she has nothing to do with trademarks and it's worth noting that when she became a member of the White

House staff, even an unpaid one, she officially put all her business into a trust so there would be no conflict of interest.

But it's worth bearing in mind, while the president actually has legal protection from conflict

of interest claims, that is not true of his staff. And if she were to step across any lines, she could come under very harsh scrutiny.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

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

END