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U.S., China Discuss North Korea; Interview with Hong Kong's Chief Executive; 800 Year Old Mosque Destroy in Mosul. Aired 8-9a ET
Aired June 22, 2017 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[08:00:14] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream.
Now, uniting against a common problem, U.S. and Chinese officials come together to discuss how to deal with North Korea.
A key symbol for ISIS lies in ruins. The U.S. and Iraq say the militant group destroyed the great mosque in Mosul as it retreats.
And I speak to Hong Kong's incoming chief executive to hear how she feels about the local booksellers detained in China.
And we start with the search for common ground over North Korea. Now, two of the Trump administration's top officials met with their Chinese
counterparts to talk about threats posed by Kim Jong-un's regime. Defense Secretary James Mattis and Secretary of State Rex Tillerson insists the
U.S. and China both understand the risks posed by North Korea.
Mattis says China is continuing to work on the issue, but Tillerson did urge Beijing to take a harder stance in dealing with Pyongyang.
(BEGIN VIDEO CLIP)
REX TILLERSON, U.S. SECRETARY OF STATE: They have a diplomatic responsibility to exert much greater economic and diplomatic pressure on
the regime if they want to prevent further escalation in the region.
Whether it is money laundering, extorting Korean expatriates, or malicious cyber activity, North Korea has engaged in a number of criminal enterprises
that help fund its weapons programs.
(END VIDEO CLIP)
LU STOUT: Now, China has pointed out it doesn't bare the sole responsibility for handling the threat from North Korea. And for more on
that, Matt Rivers joins me now live from Shanghai.
Matt, the U.S. wants China to take this firmer line with North Korea, which we've heard before. But what is the latest response from Beijing?
MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: Well, the latest response from Beijing is the exact same response that they give every time one or
another U.S. administration levies this kind of criticism.
As you just mentioned, this is not a new tactic to be taken up by a U.S. administration. It goes back well over 10 years. The trump administration
saying they want China to do more. It's almost common sense, in that point, because there's no other country on Earth that has more economic
leverage with North Korea. So, it makes sense, of course you would then look towards North Korea for - or towards China for some sort of solution
with the North Korea problem.
But what China says every single time is that they're doing as much as they possibly can, that they helped draft two different rounds of UN sanctions
and that they are firmly enforcing those sanctions. And they point to things like banning coal imports from North Korea into China earlier this
year as proof.
Now, the flip side of that, what critics would say is that what China says and what China does are two very, very different things, Kristie. The fact
that Chinese companies still do business in North Korea, the fact that some critics say that China exploits loopholes in the Security Council sanctions
that have been levied. And the fact that just total trade volume between China and North Korea has actually gone up nearly 40 percent year-over-
year, 2016, 2017, in the first quarter of those years.
So, there's a lot of evidence to suggest that China could be doing more, but China's firm line, its position every single time is we're doing as
much as we can.
LU STOUT: And Matt, really want to get your thoughts on that earlier tweet sent out by President Trump saying this, quote, "while I greatly appreciate
the efforts of President Xi and China to help with North Korea, it has not worked out. At least I know China tried!"
How do you read this? I mean, this some sort of passive-aggressive critique of China, a sign of a rift in the relationship?
RIVERS: It could very well be, but you know you notice in that statement even in what he said at that campaign rally, campaign style rally that he
had in Iowa on Wednesday evening. You know, he's ambivalent in a lot of ways. He says on the one hand maybe it's not working out so well. China
isn't doing what it needs to do when it comes to North Korea. But in the same - in that tweet and then what he said at the campaign style rally, he
also praised President Xi, and so he left the door open for praise.
So, you have to wonder what his motivation is there. And the fact is, we simply don't know. His aides told CNN shortly after that tweet that they
didn't know exactly what he was getting at there. They told CNN that anonymously. And so we're really not sure.
But the big question is, and the reason why we talk about these things, Kristie, is because what is the implication of this moving forward if there
is a rift in the relationship? If the Trump administration has decided that China isn't capable of doing what it wants - what the U.S. wants it to
do when it comes to trying to scale back or stop this nuclear weapons development program, what does that mean for the Trump administration?
What's their next move?
And also, how does that have an impact on the broader relationship between the United States and China, which as you know, Kristie, is quite possibly
the most important bilateral relationship in the world. That's why we talk about this stuff, because we don't know what he means in that tweet, but
what he does mean has broad implications around the world.
[08:05:21] LU STOUT: Yeah, the stakes are very, very big here. Matt Rivers live for us from Shanghai, thank you so much. Take care, Matt.
Now, to add to the tensions and uncertainty about North Korea, U.S. officials are concerned that more nuclear tests by Pyongyang could lead
President Trump to consider military options.
Barbara Starr has more.
(BEGIN VIDEOTAPE)
(MUSIC PLAYING)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Kim Jong-un could soon order a sixth underground nuclear test. It could lead to President
Trump considering military action.
U.S. spy satellites spotted personnel and vehicles at one of the tunnel entrances at this test site. U.S. officials familiar with the classified
assessment of Kim's personality profile say he is so unpredictable, there's no way to tell what he might do next.
REX TILLERSON, U.S. SECRETARY OF STATE: We call on the DPRK to halt its illegal nuclear weapons program and its ballistic missile test.
GEN. JOSEPH DUNFORD, CHAIRMAN, U.S. JOINT CHIEFS OF STAFF: We have responsibility, we, the Department of Defense, number one, to deter any
provocation by Kim Jong-un in the meantime and to provide the president with a list of options in the event that hostilities occur. And that's
exactly what we're doing.
STARR (voice-over): But the Pentagon also specifically updated military options to respond to a nuclear test. Some officials say a test could
indicate China's pressure on Kim isn't working and therefore military options could be presented to the president.
And a recent tweet by President Trump adding uncertainty.
"While I greatly appreciate the efforts of President Xi and China to help with North Korea, it has not worked out. At least I know China tried."
Defense Secretary James Mattis set a military red line on North Korea's weapons program.
SEN. LINDSEY GRAHAM (R), S.C.: Is it the policy of the Trump administration to deny North Korea the capability of building an ICBM that can hit the
American homeland with a nuclear weapon on top?
Is that the policy?
GEN. JAMES MATTIS, U.S. SECRETARY OF DEFENSE: Yes, it is, Senator Graham.
STARR (voice-over): But does North Korea already have a missile that could hit the United States?
GEN. JOHN HYTEN, COMMANDER, U.S. STRATEGIC COMMAND: They already have the capability to deploy an intercontinental ballistic missile. The question
is, when will they be able to mate (ph) a nuclear weapon.
STARR (voice-over): Stopping Kim from getting a nuclear weapon with U.S. firepower may be impossible.
UNIDENTIFIED FEMALE: I think it's just too late. Unless you have a full- scale military invasion, where you're going to just go in and sweep the country, we simply will not be able to end these programs.
STARR: So far, there's no indication the Pentagon is getting orders for military action but commanders are making it clear they are ready --
Barbara Starr, CNN, the Pentagon.
(END VIDEOTAPE)
LU STOUT: North Korea is also facing blistering condemnation over the death of American college student Otto Warmbier. In about an hour from
now, funeral services will be held at his high school in the U.S. state of Ohio. He died just days after returning home to the United States in a
vegetative state after being released from detention in North Korea.
And his parents have objected to an autopsy.
Medical experts say that without one, it may not be possible to determine the official cause of death.
The mosque in Iraq where ISIS announced its caliphate three years ago has been destroyed. Now here are the before and after pictures of the great
mosque of al Nuri (ph) in Mosul. Iraq says ISIS blew up the mosque because coalition troops were closing in. Prime Minister al-Abadi says that
amounts to an official acknowledgment by ISIS that it has been defeated.
ISIS claims U.S. war planes bombed the mosque, but U.S. officials tell CNN that is 1000 percent wrong.
Let's get more now from our senior international correspondent, Nick Paton Walsh. He's standing by in Beirut for us. And, Nic, who destroyed the
mosque and what does it mean for the future of ISIS in Mosul?
NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT: The fog of war at this point obviously means we can't tell 100 percent for certain who destroyed
the mosque. We have two sides contradicting each other, but frankly the balance of history here, and the fact that ISIS aren't particularly big on
the truth much of the time would strongly suggest that they blew it up themselves.
There have been lots of reports of explosive being moved around the building frankly from the moment in which Abu Bakar al-Baghdadi finished
his speech back in July 2012, his only public appearance, perhaps never wanting to see this great symbol in their mind fall into the hands of their
enemy.
That is potentially something quite close. We've seen Iraqi special forces moving around the old city now, penetrating into its very narrow and
winding alleyways to try and push ISIS out of these remaining matter of square miles in Mosul, once the largest population center it held certainly
in Iraq.
They're now deeply on their back foot and destroying a symbol like this, as I say, not only where their leader gave his singular public appearance, but
also declared the beginning of their so-called caliphate, is, frankly, an act of desperation. We know how big they are on propaganda on their own
image. I'm sure within their minds they were deeply concerned that they would see this mosque in the hands of those who are defeating them
militarily. That may explain this move.
But it is pretty much a shining example of how ISIS will happily interpret Islamic culture for their own means or perverted in (inaudible). It was a
strike on one of the holiest nights of the holy month of Ramadan, the night of power in which the Koran was said to be given to the prophet Muhammad.
Very shocking symbolism indeed in this act of destruction, those images we've been showing making it clear, quite how devastating the damage is to
the mosque, but also remember similar damage has happened a cross Mosul here. It's really a city in ruins to some degree - Kristie.
LU STOUT: Yeah. And with the world's attention now back on Mosul, what's the situation for civilians there? Not long ago, you reported on the
suffering inside Mosul's old city. What's the situation there now?
WALSH: I mean, for months obviously we'd be having to tell you how ghastly life has been for those civilians caught in the crossfire here, but it's
probably reached its most acute moment here. We're talking about a very small amount of territory here, densely packed. The al-Nouri Mosque was a
gateway to this old city. It is now the focus of the very final stand in Iraq in a large populated area of ISIS. That most hardcore embittered
fighters there dug in. IEDs, booby traps, that is, in walls (inaudible) tens of thousands, if not over 100,000 civilians, some of them hiding in
basements being used a human shields. We've seen images of children staggering through holes in walls, desperate for simply a drop of water
here as the punishing summer heat increases difficulty for Iraqi special forces moving through that area.
It is going to be an absolutely awful, blooding denouement to ISIS's presence in Mosul, and it is just getting underway with this devastating
symbolic (inaudible) destruction apparently by ISIS - Kristie.
LU STOUT: Nick Paton Walsh reporting live from Beirut. Thank you, Nick.
ISIS is on the back foot in Iraq. It's also in its self-declared capital Raqqa. Syrian, Kurdish, and Arab fighters have been encircling the city,
even pushing into parts of Raqqa. Arwa Damon has been following them and found that women were part of the fighting there.
(BEGIN VIDEOTAPE)
(GUNFIRE)
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): The coalition-backed Syrian Defense Forces have managed to clear the first few
neighborhoods of Raqqa. Outside the city, we ran into Clara Raqqa, one of the unit commanders here and a native of the city itself just back from one
of the fronts.
CLARA RAQQA, SYRIAN DEFENSE FORCES UNIT COMMANDER (through translator): In the city, we can see that the city of Raqqa is above ground and there is
another city below ground.
Raqqa was a city that was a mosaic of people that turned into a place of women's enslavement, the place where women were enslaved has to be
liberated by the hands of women.
DAMON: It's a city whose brutality transcends our current vocabulary. Raqqa is the capital of the so called caliphate ruled by ISIS since 2013, where
Yazidi Kurds and even Arab women were sold on the streets as sex slaves; where public executions and beheadings were a regular occurrence; where
journalists and aid workers were held hostage and murdered.
These are the faces of those who lived in Raqqa now in a hastily put together camp, children who have little choice but to witness the stuff of
nightmares. The lines of good and evil blurred for them.
This woman from Raqqa married an ISIS member; a foreigner from the Caucasus who she says had an administrative job.
UNIDENTIFIED FEMALE (through translator): ISIS made a mockery of us. There is nothing else we can say. (on-camera): When they were running away, they
say that they were also fired upon by ISIS fighters who were basically ordering them to return.
DAMON: And then there are also those who went willingly to join. It became a magnet for foreign fighters and others. This woman is from the Caucasus.
She came with her husband and four children claiming they wanted to live in the caliphate. She says they were lured online by the promise of Islamic
utopia and a job for her husband.
This Syrian woman is originally from Homs. She was an English teacher. She eventually married a Moroccan man who went through ISIS military training
although she claims he never fought. ISIS, she says, never allowed the population to escape their brutality.
[08:15:04] UNIDENTIFIED FEMALE: So, when you walk on the streets of Raqqa, there are big screens that are showing beheadings. They have, you know, the
projectors and we are walking in the streets and just watching these videos.
DAMON: How are you going to explain this to your children?
UNIDENTIFIED FEMALE: I pray for God to -- that my children forget this without asking me. They are all the time thinking about war, about killing
and they see a video of cutting heads.
DAMON (voice-over): The battle for the ISIS capital has just begun and what lies ahead is unknown for those who are fighting to liberate it, and for
the civilians who are still trapped inside.
Arwa Damon, CNN, Syria.
(END VIDEOTAPE)
LU STOUT: Now, Hong Kong is getting a new leader in less than two weeks. And coming up here on News Stream, my conversation with incoming chief
executive Carrie Lam, ahead of the 20th anniversary of the Hong Kong handover, hear what she's saying about the state of freedom in the
territory.
And the big secret among select U.S. senators is about to be revealed. We'll soon learn what's in their new health care bill and what it will take
to get it passed. Stay with us.
(COMMERCIAL BREAK)
LU STOUT: Coming to you live from Hong Kong. Welcome back. You're watching News Stream.
Ahead of the 20th anniversary of the handover of Hong Kong from Britain to China, the daughter of a Hong Kong bookseller detained in China is
criticizing Britain for ignoring the erosion of freedom in its former colony.
In an op-ed in The Guardian newspaper, Angela Gui, daughter of Gui Minhei (ph) writes, "21 years ago, then British prime minister John Major pledged
that Britain would continue to defend the freedoms granted to Hong Kong by the Joint Declaration against its autocratic neighbor. Today, instead of
holding China to its agreement, Britain glances down at its shoes and mumbles about the importance of trade."
Now, Gui has been appealing for her father's release since 2015 when she said that he disappeared while in Thailand. Months later, he appeared on
Chinese state TV saying he voluntarily handed himself over to Chinese authorities.
Activists believe Gui, a Swedish national, was detained by China for publishing books critical of Beijing. Now, the case has sparked fears
over freedom of the press as well as illegal arrests in Hong Kong.
Now, earlier today, I spoke to Carrie Lam, the incoming chief executive of Hong Kong who was selected by a largely pro-Beijing committee in March.
Now, we had a wide ranging conversation about the handover and Hong Kong's relationship with mainland China. And in this clip, I gauge her reaction
on the bookseller incident.
(BEGIN VIDEO CLIP)
CARRIE LAM, HONG KONG CHIEF EXECUTIVE: I do share the concern of some people that these sort of reported incidents will give rise to sort of
anxiety and fear of the one country, two systems, this (inaudible) autonomy, this rule of law in Hong Kong being eroded, but at the end of the
day we need evidence before we could actually conclude what actually has happened.
But even on the basis of perceptions and fears I think as the chief executive, I will feel obliged to come up and to speak about my concerns
and worries. And so assure people on Hong Kong, and of course the international community that enforcement of laws in Hong Kong is something
to be carried out by our own law enforcement agencies.
[08:20:30] LU STOUT: Angela Gui, we've spoken to her at CNN. She's the daughter of one of the missing Hong Kong booksellers, Gui Minghei (ph) who
is still detained in China. And she has been campaigning for his release. And she's been asking the world do not forget my father. Do you have any
words of comfort for her?
LAM: Well, I think as the country is now pledging to really govern by the rule of law, where we should really be more sympathetic and perhaps be more
understanding as the thing evolves in the mainland in China. But as far as Hong Kong's position is concerned, one country, two systems means one
country, two systems. We are duty bound to safeguard the Hong Kong system, but it would not be appropriate for us to go into the Mainland or to
challenge what happens in the Mainland. That has to be dealt with in accordance with the Mainland systems.
LU STOUT: So, you would not be able to pledge action, but what about just, again, words of comfort?
LAM: Well, of course, I sympathize with the girl, because as a mother and myself, if any of my relatives were in that sort of situation, then even
out of humanitarian and compassionate grounds, it is only right for me to say the words that I have said.
But at the end of the day we must respect the rule of law in respective jurisdictions.
(END VIDEOTAPE)
LU STOUT: That was part of my conversation with incoming Hong Kong chief executive Carrie Lam. And here is how the daughter of missing bookseller
Gui Minghei (ph) reacted. She describes the response of the Hong Kong government as, quote, "silence acceptance" and calls her father's alleged
abduction an obvious breach of one country, two systems.
Now, in just an hour from now, U.S. Republican Senators will finally reveal what exactly is in their health care bill. And so far, it's been a closely
guarded secret. Most of their fellow Republicans haven't even seen it yet. The unveiling is a do or die moment for Republican efforts to repeal and
replace Obamacare, but will they face a revolt from inside their own party. Here's Suzanne Malveaux.
(BEGIN VIDEOTAPE)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I hope we're going to surprise you with a really good plan.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Senate leadership hoping to appeal to both moderate and conservative Republicans with a bill that is expected to
phase out Medicaid expansion starting in 2021, a year later than the House bill, and defund Planned Parenthood for one year, which could be a deal
breaker for two key Republican senators. Republicans can only afford to lose two votes since no Democrat is expected to support the bill.
SEN. MITCH MCCONNELL (R-KY), MAJORITY LEADER: They made it clear they're not interested in helping.
SEN. CHUCK SCHUMER (D-NY), MINORITY LEADER: In is bill is mean, very mean.
MALVEAUX: The bill is not expected to include the controversial House proposal that would allow states to decide on protections for people with
preexisting conditions. But the Senate may allow for a new set of waivers that could eliminate essential health benefits. There are still details we
don't know about the bill that could decide its fate, including when Obamacare taxes will be repealed, how much money allocated for high-risk
pools, and how the Senate will calculate the distribution of tax credits which are expected to be more generous than the House plan. Already some
Republicans are expressing frustrations.
SEN. RON JOHNSON (R), WISCONSIN: I can't imagine, quite honestly, that I would have the information to evaluate and justify a yes vote within just a
week.
UNIDENTIFIED MALE: Are you satisfied with the process right now?
SEN. JOHN MCCAIN (R), ARIZONA: No. Of course not.
MALVEAUX: Whatever the final draft, Senate aides tell CNN Republican leaders want President Trump to stay far away from the negotiations,
describing an earlier meeting as, quote, "kind of a disaster." The president has not yet endorsed the Senate bill but sounded hopeful at last
night's rally in Iowa.
TRUMP: You know, I've been talking about plan with heart. I said, add some money to it. A plan with heart. But Obamacare is dead.
(END VIDEOTAPE)
LU STOUT: Suzanne Malveaux reporting there.
Russia is preparing a tit-for-tat response for the U.S. renewing sanctions against it. Now that warning comes just hours ago from a Russian foreign
ministry spokeswoman. On Wednesday, Russia abruptly canceled a meeting with top U.S. officials set for Friday designed to improve dialogue between
the two nations. Russia, it seems, is losing patience with the Trump administration.
Now, let's bring in Jill Dougherty. And Jill, this meting, it was a long- planned meeting and it was canceled basically for retaliation, right?
JILL DOUGHERTY, CNN CONTRIBUTOR: Yes, but retaliation for what, exactly, I think - you could certainly divide that. I mean, listening to Maria
Zakharava (ph), who is the spokesperson for the foreign ministry, she said it wasn't specifically in reaction to sanctions that were introduced on
Tuesday, she said basically the atmosphere doesn't allow for this meeting. And interestingly, you can't be open and try to isolate Russia at the same
time.
And I think that, Kristie, is the gist of it. The Russians feel that the United States maybe talking a good game, or at least the Trump
administration has been talking a good game, but ultimately they're looking at sanctions. And you have the sanctions from Tuesday, which were not an
expansion of sanctions. They were really kind of enforcing sanctions that already exist about Ukraine. But there are new sanctions. They passed the
Senate. Now they're kind of stuck in the House. But a whole new round of sanctions facing them down the barrel.
So, there is great concern about that. And I think, you know, it's a serious thing for Russia, because they realize that their economy can
certainly they can improve domestically and they can try to replace things that they would import with domestic product, but ultimately they need
investment from the west. And if you have the United States and Europe with these sanctions it's going to be very, very tough for them to do that.
LU STOUT: OK, so we have this new round of sanctions, the cancellation of this meeting, the incident in Syria that happened earlier this week that
angered the Russians - the U.S. shooting down a Syrian war plane. Russia saying that it could respond by targeting U.S.-led coalition aircraft in
Syria. Jill, is this a dangerous new phase in relations between U.S. and Russia?
DOUGHERTY: Well, you know, I think there probably is less to it than would appear on the surface. They are in some fashion talking, but the danger
here, and you can see it also up in the Baltics, is that when you have a lot of military hardware in the air - planes, et cetera - in the air,
especially in Syria, there's a possibility of mistakes and dangerous mistakes that can then spin out ofcontrol.
And don't forget, you know, in Syria right now, as forces both from the Syrian government, the Russian air force, the Iranians, the United States
with its allies, coalescing around Raqqa, the headquarters for ISIS, is ISIS is about to go down in flames. It's a very, very complex mix of many
forces. And they're all jockeying for land, some people would call it a land grab. That, in itself, creates a lot of danger, some of it really
unpredictable danger, some of it really unpredictable danger.
LU STOUT: Jill Dougherty reporting live from Moscow. Thank you, Jill.
A long time ally of the U.S. seems to be building closer ties to China. When we come back, a top Philippe official tells me whether it means his
country is putting territorial disputes on the back burner.
(COMMERCIAL BREAK)
(HEADLINES)
[08:32:06] LU STOUT: Now, U.S. President Donald Trump is back in campaign mode, and he's taking a victory lap after Republicans won two U.S. House
seats in special elections this week. Joe Johns tells us about the campaign style rally the president held in Iowa on Wednesday.
(BEGIN VIDEOTAPE)
TRUMP: All we do is win, win, win. We won last night.
JOE JOHNS, CNN CORRESPONDENT (voice-over): An energized President Trump returning to the environment he loves the most, a campaign rally.
TRUMP: It's always terrific to be able to leave that Washington swamp.
JOHNS: Going after his favorite targets, the media and Democrats.
TRUMP: And they've been unbelievably nasty, really nasty. I am making it a little bit hard to get their support, but who cares?
JOHNS: While touting his promised border wall.
TRUMP: We're thinking about building the wall as a solar wall. This way, Mexico will have to pay much less money. And that's good, right?
JOHNS: President Trump rallying his loyal supporters with this immigration proposal.
TRUMP: Those seeking admission into our country should not use welfare for a period of at least five years.
JOHNS: A rule that is already the law of the land, and reiterating this rather vague concern about China's influence on North Korea.
TRUMP: I do like President Xi. I wish we would have a little more help with respect to North Korea from China, but that doesn't seem to be working out.
JOHNS: The president also touting his wealthy cabinet picks before making this eyebrow raising statement.
TRUMP: I love all people, rich or poor. But in those particular positions, I just don't want a poor person. Does that make sense?
JOHNS: And only briefly mentioning the Russia investigations hanging over his administration.
TRUMP: They have phony witch hunts going against me.
JOHNS: But Mr. Trump silent about Russia's interference in the 2016 election, an issue the White House continues to dodge when pressed for the
president's position.
SEAN SPICER, WHITE HOUSE PRESS SECRETARY: I have not sat down and talked to him about that specific thing.
JOHNS: A former homeland security secretary testifying Tuesday that evidence of Russian meddling is undeniable.
JEH JOHNSON, FRM. HOMELAND SECURITY SECRETARY: In 2016 the Russian government at the direction of Vladimir Putin himself orchestrated cyber
attacks on our nation for the purpose of influencing our election. That is a fact plain and simple.
(END VIDEOTAPE)
LU STOUT: And that was Joe Johns reporting.
A new attempt by two Communist neighbors to mend relations seems to be running into a road block. Now, China has called off a border defense
meeting with Vietnam citing reasons related to working arrangements. It comes a month after leaders of the two countries agreed to shore up
cooperation. Now their biggest point of contention, territorial disputes in the South China Sea.
The Philippines is also part of that ongoing dispute, but it looks like the country is pulling back from confrontation. Manila sees Beijing as a
source of much needed investment. And earlier, I spoke with Philippine finance minister Carlos Dominguez. And I asked him why the country isn't
leaning on other major western powers instead.
(BEGIN VIDEO CLIP)
[08:35:13] CARLOS DOMINGUEZ, PHILIPPINES FINANCE MINISTER: China is still growing at what is it 6.9 percent. And if you look at the other countries,
it doesn't make sense for us to tie up with countries that are growing at a maximum of maybe of 2.5 percent. And in some areas 1 percent is a big
deal.
So, it's - it makes it a lot of economic sense for us to do so.
LU STOUT: And as the Philippines aligns itself economically more closely to China, what then happens in the South China Sea? You know, we had that
planned visit by Duterte to visit disputed island - I think it's called Situ (ph). He canceled that trip after receiving a warning from Beijing.
So, is Duterte softening his stance on the South China Sea?
DOMINGUEZ: The president said that at any time during his administration, probably towards the end, he will bring these issues up. So, it's now a
matter of building up confidence between our two countries so that we will have the basis for arriving at a peaceful resolution to the issues that we
have.
We have decided that we have issues with China as we have issues with other countries. But we will not let these issues drive our entire relationship.
So, I think that's the mode that we are on right now.
LU STOUT: Yeah, because it wasn't that long ago when Rodrigo Duterte said he was going to ride that jet ski to the disputed island and plant the flag
of the Philippines there and now he's saying, no, China, you're warning me. I'm not going to go visit that disputed island?
DOMINGUEZ: I don't think he says you're warning me, he says maybe it's not the right time to do it.
LU STOUT: OK, maybe it's not the right time to do it, because I understand that an economic alliance comes with conditions?
DOMINGUEZ: I think that he understands that if it's to the benefit of our country, to be at peace with our neighbors and to recognize that not every
issue is - has to be addressed at the moment, that there are times when, like in any marriage, you have to put some issues aside first before you
address them, and address them at the right time.
LU STOUT: So, trade first, prosperity first, then sovereignty, South China Sea issues?
DOMINGUEZ: Trade first, trust and confidence first, with each other, so that it will be very clear that we are looking for a mutually
satisfactorily solution.
(END VIDEOTAPE)
LU STOUT: So, in regards to the South China Sea, not every issue needs to be addressed at the moment, unquote. That was Philippine Finance Minister
Carlos Dominguez speaking to me about why his country is shoring up ties with China.
Now, you're watching News Stream. Still to come right here on the program, a North Korea defector is taking a stand after the death of American
student Otto Warmbier. And now he's planning to use balloons to send a message to North Korea.
(COMMERCIAL BREAK)
LU STOUT: A surprising royal revelation coming out of Britain. Prince Harry says no one in his family is keen to take on the top role. Now the
prince has never made a secret of the fact that he does not want to become king, but in an interview with U.S. magazine Newsweek, the fifth in line to
the throne indicates that no one in the royal family really wants the job either.
But Harry ads, quote, we will carry out our duties at the right time. He says that he and William are trying to modernize the monarchy.
Now, as we mentioned earlier, funeral services will be held shortly for Otto Warmbier. His death didn't only spark outrage in the U.S., a North
Korean defector is sending a flood of propaganda balloons over the border from South Korea. He's doing it to remember Warmbier and to condemn
Pyongyang.
Paula Hancocks has this exclusive report.
(BEGIN VIDEOTAPE)
PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT (voice-over): Under cover of darkness, Park Sang-hak prepares his message to North Korea -- 300,000
fliers, 2,000 $1-bills, and this. A clear message from this defector that North Korea is to blame for the death of Otto Warmbier, the U.S. student
detained for 17 months in North Korea sent back in a coma who passed away this week.
It reads, "Kim Jong-un brutally killed the young American man, Otto Warmbier. Humanity condemns him."
Using massive balloons to float the message across the border into North Korea, this is a drill Park knows well. The activist said these messages
change minds. He wants his people to know the truth about their regime.
PARK SANG-HAK, NORTH KOREAN DEFECTOR AND ACTIVIST (through translator): We're telling 20 million North Korean residents of Kim Jong-un's cruel,
murderous actions. And we're sending this to express our condolences over Warmbier.
HANCOCKS (voice-over): Park knows these propaganda balloons anger North Korea. He survived assassination attempts in the past. This North Korean
agent arrested in 2011 on the streets of Seoul by South Korean intelligence officials, he was trying to meet up with Park. Officials showed us the
poisoned pens he was armed with at the time. But Park refuses to stop and has a message for U.S. President Donald Trump.
PARK (through translator): I want to urge the U.S. government in light of Warmbier's sacrifice to charge Kim Jong-un in the international criminal
court for crimes against humanity and designate North Korea as a barbaric and terrorist country.
HANCOCKS (on camera): Park has been sending these propaganda balloons for well over a decade now. He says he knows not all of them make it to North
Korea depending on the wind. He also says he may never know how many actually read his leaflets, but he's convinced that it is important for him
to try and get some information to his own people who he says are starved of contact with the outside world.
Paula Hancocks, CNN, Seoul.
(END VIDEOTAPE)
LU STOUT: And that is News Stream. I'm Kristie Lu Stout. And World Sport with Alex Thomas is next.
END
