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G20 Summit; Energy Facilities Risk Cyber Attack; Turmoil Triggers Exodus of Venezuelans; Mom Accused of Killing Family Appears in Court. Aired 5-6a ET

Aired July 8, 2017 - 05:00   ET

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


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GEORGE HOWELL, CNN ANCHOR (voice-over): World leaders in Hamburg, Germany, the final day of the G20 summit. Later, the U.S. president Donald Trump meets with Chinese president Xi Jinping.

NATALIE ALLEN, CNN ANCHOR (voice-over): On Friday President Trump and Russian president Vladimir Putin agreed on a cease-fire in parts of southwestern Syria. The two sides say they will provide humanitarian aid and ensure compliance by all involved.

HOWELL (voice-over): And ahead, a CNN exclusive: a look inside the city that ISIS calls its capital. We will show you the conditions facing the fighters and residents there in Raqqa, Syria.

ALLEN (voice-over): It's all ahead here. Welcome to our viewers here in the United States and all around the world. We are live in Atlanta. I'm Natalie Allen.

HOWELL (voice-over): And I'm George Howell from CNN World Headquarters. NEWSROOM start right now.

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HOWELL: It's 5:01 on the U.S. East Coast.

The G20 summit is back, underway for its final day. But for the most part, all eyes have been on the U.S. president Donald Trump. He is set to meet with Indonesian president soon and he met with the British prime minister, as you see here, Theresa May earlier. He commented that the U.S. and U.K. have a connection. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: TRUMP: I'd like to thank Prime Minister May for being with us. We've had tremendous talks. There is no country that could possibly be closer than our countries for a long time.

And I just want to say thank you very much.

We are working on a trade deal, which will be a very, very big deal, a very powerful deal, great for both countries. And I think we will have that done very, very quickly.

We have all of our great people. We have Wilbur Ross with us. We have all of the great people. Rex and I had a tremendous meeting yesterday with President Putin. And we've had really great meetings with a lot of people, having a (INAUDIBLE).

Prime Minister May and I have developed a very special relationship and I think trade will be a very big factor between our two countries.

So I want to thank you very much.

QUESTION: Mr. President, did the Russians lie about your meeting yesterday?

TRUMP: I won't be going to London.

QUESTION: When will you be going, sir?

TRUMP: We'll work that out.

(END VIDEO CLIP)

ALLEN: Sounds a bit confusing; those were questions being asked about the Russia meeting.

Mr. Trump also in the past hour joined German chancellor Angela Merkel at an event his daughter, Ivanka, helped to launch, the women's entrepreneurship finance initiative.

And later on, the U.S. president will speak with several more Asian leaders, including major meeting with Chinese president Xi Jinping, North Korea at the top of that agenda. Mr. Trump may try once again to push China to rein in Pyongyang.

HOWELL: Vladimir Putin will also be speaking later. And he is almost definitely sure to get questions about his meeting with Mr. Trump on Friday. There have been mixed signals on what came out of that conversation.

Let's bring in our international diplomatic editor, Nic Robertson, live in Hamburg this hour.

It's good to have you with us, Nic.

So what happened in that meeting?

That's the big question. There were no cameras there. So we will never know exactly what was said. We do know that both sides claimed that it was positive. We know that there were conflicting statements on the Russia meddling issue. We will get into that a little later here with Ivan Watson.

But on the whole, the optics of this meeting?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: The optics of the meeting are that it was productive. That was certainly the way secretary of state Rex Tillerson came out and explained to reporters afterwards in an off-camera but on-audio briefing.

He said, as far as the issue of the question of meddling went, that it became clear that that was a sort of an impasse with President Putin, that they weren't going to make any headway.

He said that it had become very clear early on in the meeting that the two leaders were getting on well, that they decided -- President Trump thought it was more important for -- to continue to --

[05:05:00]

ROBERTSON: -- press on the issue, relitigate the issue of Russian meddling, which, according to Secretary of State Tillerson, when he had put that question at the beginning of the meeting to President Putin, he framed it in the terms of, you know, framing the question for American people are asking this; rather than, I, Donald Trump, am asking you about this, about the meddling.

He framed it in terms of not him asking but the American people having this question.

So but he pushed on past that very quickly and Secretary of State Tillerson characterizing this as both men getting on well and wanting to sort of develop their relationship going forward. That seemed to be the most important thing, an agreement, as you say, on a cease-fire in a small part of southwestern Syria, something that potentially could be built and to further cooperation in Syria, they said.

Very little reported back to us about what may or may not have been said on the issue of Ukraine, which is a big point of contention between the two leaders.

But the narrative that emerges from both sides is one that shapes this relationship as one that is moving forward, one that is positive, not without problems, but really not focusing on the problems, trying to find the areas of cooperation.

HOWELL: Other world leaders from the E.U., from China, also looking at this interaction between a U.S. president and the Russian president; obviously the world was watching that meeting.

But how are those other world leaders, what are they taking away from what they saw?

ROBERTSON: Well, they'll take away from it an American president, who wants to engage with other leaders when he feels that there is something to be gained from it. It's not entirely clear, outside of trade, which President Trump continues to say is important.

He has said, you know, when he was in Warsaw just a couple of days ago, that there were great things coming for Russians and Americans together. And he does continue to push the fact that trade can be done with Russia.

But I think that they will look at that meeting and say when President Trump sees something of value in the relationship, then he will chase that relationship.

You know, over and above the concerns that are being expressed so strongly in his home nation and that is the question of meddling, Russian meddling in the U.S. elections.

But President Xi Jinping, which is perhaps the biggest meeting on President Trump's agenda today, is going to look at it and see someone that is probably not going to see eye-to-eye with, after having had their warm relationship earlier in the year at Mar-a-lago just a couple months ago, there are many points of contention; North Korea will be one of those.

As we heard Secretary of State Tillerson explain with President Putin, on North Korea, both sides accepted that they had different speeds of approach and different tactics, if you will.

And likely I think we can expect the same sort of narrative from that meeting with President Xi Jinping.

But going into that meeting, of course, the United States has sent two B-1B bombers on a training exercise over North Korea, escorted by two -- by F-15s from South Korea, by U.S. F-16s in the area.

And on the way back, the planes will be escorted by Japanese aircraft. So this is not what Xi Jinping wants. He has talked about a deescalation of militarization across all countries in the region, so there will be tension there. So how will he eye President Trump, going into this as an adversary there, he's probably not going to get a whole lot of agreement with.

HOWELL: This important meeting coming up between the U.S. president and Xi Jinping. And again, the many questions that come out of the meeting with President Trump and President Putin, not only in the United States but in regard to the many investigations underway with Russian meddling.

But also with NATO, with the E.U. looking on to see how the United States wants to grow closer through the White House with Russia.

Our international diplomatic editor, Nic Robertson, live, thank you for the report.

ALLEN: Let's get the view from Russia on the meeting between Presidents Trump and Putin. Our Ivan Watson is in Moscow live for us.

Ivan, first I just want to ask you, you know, there seems to be questions about how the meeting went, depending whom you ask. We had a Russian scholar on a couple hours ago, who said in his feeling that Russia is just spinning this. And that this is maybe making a fabrication. And he even said Sergey Lavrov downright lied.

What's the view from there?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I think, first of all, Russian officialdom looked pretty delighted with the meeting, with a number -- [05:10:00]

WATSON: -- of media personalities here, saying that the Trump-Putin meeting overshadowed and eclipsed the entire G20.

But, yes, there is a question that, after this kind of unprecedented meeting that went on so much longer than was originally planned, that the two top diplomats who were in the room came out and gave differing accounts, contrasting accounts, of how that controversial question was discussed of alleged Russian meddling in the U.S. election.

The Russian foreign minister came out and said, hey, Vladimir Putin denied any meddling and the American president accepted it. Take a listen.

(BEGIN VIDEO CLIP)

SERGEY LAVROV, RUSSIAN FOREIGN MINISTER (through translator): President Trump said that he heard firm assertions from President Putin. That is not true. And that Russian authorities have not meddled in these elections and that he said that he accepts these assertions. That's it.

(END VIDEO CLIP)

WATSON: And Lavrov went on to say that President Trump mentioned that certain groups are trying to enflame the situation around this alleged meddling.

Now Secretary Tillerson said that President Trump pressed President Putin on this and that they basically agreed to disagree.

What's interesting is after Foreign Minister Lavrov spoke, a White House official then had to come out, speaking on anonymous, denying that President Trump had accepted Vladimir Putin's denial.

So you have contrasting accounts of this very controversial question, which is not going to go away, given the number of investigations that are underway, into alleged meddling and links, alleged links, in Washington, right now -- Natalie.

ALLEN: As far as the big picture for Putin, he wants to restore Russia's place on the world stage.

Is he any closer to getting there as a result of this meeting?

Or is there a door opened for him?

WATSON: I believe so and I just we heard a top lawmaker here in Moscow, speaking on Russian TV, acknowledging that they would probably be living in a parallel situation in the future.

These sanctions that Russia does not like, that have been imposed by the U.S. and were strengthened just a few weeks ago by the Trump administration, they're not likely to go away. But there are other areas where the two governments will be

cooperating in the future: notably, Syria, where both sides agreed to establish essentially a safe zone in southwestern Syria.

When it comes to the Ukraine conflict, which Russia plays an enormous role in, the U.S. has agreed to appoint a special envoy to help with negotiations on that point.

There seems to be disagreement on North Korea. Rex Tillerson, the U.S. secretary of state, conceded that the Russians view this differently. The Russian position, this week has been, that North Korea did not, in fact, fire an intercontinental ballistic missile, as North Korea has claimed and as U.S. military officials have concluded.

Instead, it was a medium-range ballistic missile.

One other area of contention, Secretary Tillerson said that the U.S., the Trump administration's position is still to call for regime change in Syria, that the Assad family and President Assad must go.

The Russian government continues to firmly support President Assad. So there are some areas of cooperation but still a number of areas of difference. And Secretary Tillerson alluded to that in his statements to the press -- Natalie.

ALLEN: We appreciate you breaking it down from Moscow for us. Thanks, Ivan Watson.

HOWELL: And another angle on Washington, Moscow relations, Russia is stepping up its spying in the United States.

ALLEN: U.S. officials believe the Kremlin feels emboldened by the lack of forceful retaliation for meddling in the U.S. election. Dianne Gallagher looks at some of the cloak-and-dagger operations in the U.S.

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DIANNE GALLAGHER, CNN CORRESPONDENT (voice-over): As President Trump met face-to-face with President Putin, sources tell CNN the Russians are ramping up intelligence gathering inside the U.S., with suspected Russian intelligence officers continuing to enter the country under the guise of other business.

In some cases, Russian spies have tried to gain employment at places with sensitive information.

STEVE HALL, CNN NATIONAL SECURITY ANALYST: They are looking for other ways to be able to attack the United States, should they need to do so. And the most compelling way to do that is basically a cyber attack that would shut down significant American infrastructure.

GALLAGHER (voice-over): U.S. officials say Russians are feeling emboldened by the lack of significant retaliation for meddling in the 2016 election, from both the Obama and Trump administrations. Intelligence experts warn that America and its elections remain at

risk, even after Trump raised the issue with Putin during their meeting. Putin denied any interference.

GEN. JAMES CLAPPER, FORMER DIRECTOR OF NATIONAL INTELLIGENCE: This is an assault on us, our nation, our country and regardless of party. And we need to get to the bottom --

[05:15:00]

CLAPPER: -- of this and figure out what to do to prevent it in the future.

GALLAGHER (voice-over): For decades, Russian intelligence gathering inside the U.S. has been a constant threat.

Before becoming a Moscow media star, Anna Chapman was caught on camera in the U.S., working under cover for the Kremlin. In 2010, she was busted during an FBI probe into 10 Russian deep cover sleeper agents.

Chapman and others were later exchanged in a spy swap with Russia.

Currently intelligence sources tell CNN they believe the Russians have nearly 150 operatives here, quickly replenishing their ranks after the Obama administration expelled 35 diplomats suspected of spying back in December, shuttering two compounds believed to continue sophisticated surveillance equipment.

Russia denies that. But a U.S. official says Russians were seen removing equipment before going home. The compound now is a major point of contention between Russia and the U.S.

HALL: In my view, the administration should absolutely not return them really under virtually any circumstances that I can imagine the Russians agreeing to. There ought to be a price to pay. And this is actually a relatively small price to pay.

GALLAGHER (voice-over): Meanwhile the FBI and Homeland Security have issued new warnings to U.S. energy facilities about the potential of cyber attacks on operating systems at nuclear plants.

Wolf Creek Nuclear Operating Corporation, that runs a nuclear plant in Kansas, was one of the companies targeted, according to a report in "The New York Times."

There is no indication in any of the intrusions, the systems that control the actual plants, have been infiltrated.

A joint statement from the FBI and Department of Homeland Security said, in part, "There is no indication of a threat to public safety as any potential impact appears to be limited to administrative and business networks."

And while the origins of the hackers are being investigated, people familiar with the investigation tell "The New York Times" the techniques seen here mimic those of a Russian hacking group from five years ago.

GALLAGHER: Now "The New York Times" says that joint report between DHS and FBI did not indicate if the attempted hacks were an attempt at espionage, trying to get some trade secrets or something, or, the paper said, an attempt at greater destruction -- Dianne Gallagher, CNN, Washington.

(END VIDEOTAPE)

HOWELL: Dianne, thanks.

Still ahead here on NEWSROOM, a CNN exclusive: CNN senior international correspondent Nick Paton Walsh inside the epicenter of the fight against ISIS. He's in Raqqa, Syria. We'll have that report.

ALLEN: And as you know, the turmoil continues in Venezuela. The economy in shambles and many don't know where their next meal is coming from. We will have the latest on that situation for you. You are watching CNN NEWSROOM.

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HOWELL: Welcome back to NEWSROOM.

In Southwestern Japan, at least 15 people have been killed as torrential rains caused flooding and landslides. Dozens of people are unaccounted for and rescue crews are struggle to reach stranded residents. The disaster management officials say tens of thousands of others there.

ALLEN: Many people can't return to their homes. Schools have been opened as evacuation shelters. And the government has dispatched 12,000 emergency personnel for rescue operations.

There was one encouraging result from Friday's meeting between U.S. President Donald Trump and the Russian president. The two leaders managed to agree on a partial cease-fire in Syria's civil war.

HOWELL: The U.S. secretary of state Rex Tillerson calls it the first indication that the two countries can work together to resolve the conflict. The U.S., Russia and Jordan reached a deal creating so- called deescalation zones in three regions of Southwest Syria.

ALLEN: Under the deal, the U.S. and Russia will ensure compliance, provide humanitarian access and ensure security in this zone. The cease-fire takes effect on Sunday.

HOWELL: I want to take you to the heart of the battle against ISIS in Syria. CNN's Nick Paton Walsh is in Raqqa, Syria, that's the city that ISIS has used as its self-proclaimed capital.

ALLEN: But ISIS getting out squeezed slowly, days ago, Syrian Democratic Forces punched through the wall encircling Raqqa. And Nick became the first Western journalist to get exclusive access.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: We are now inside the old city walls of Raqqa, the capital of ISIS' self-declared caliphate in the territory, from which they will make their final stand in Syria and really the Middle East.

That wall, a key milestone for coalition forces and the Syrian Kurds and Arabs who now control fully 200 or 300 meters inside of the old city. Down that way, 200 meters, are ISIS' positions.

The forces here don't move around much in the daylight because of the risk of ISIS snipers, less so in these streets. But it's at night where the majority of the movement forward is made.

We've seen U.S. forces here, not far from these positions. Anxious not to be filmed or even noticed, frankly. But you understand it's them calling in the airstrikes and the artillery that's allowing these forces to move forth, frankly, so quickly.

I've been surprised how little of the city ISIS are, apparently, in right now, an area possibly one and a half to three miles in terms of size. So increasingly small terrain that they hold.

But as we saw in Mosul in Iraq, civilians, apparently, held in their midst, unable to flee because of the ISIS snipers. A real impediment for these Syrian Kurdish and Arab fighters. But still the progress here marking, potentially, the last time that ISIS can say they hold a city in Syria.

(END VIDEOTAPE)

ALLEN: And that can't happen soon enough. Our Nick Paton Walsh will be there for us in Raqqa.

Well, the political and economic turmoil in Venezuela has forced many people to cross the border to Colombia; nearly half of those making this trip are children. They are just looking for something to eat and they've had to go to another country. Here's Leyla Santiago with our story.

(BEGIN VIDEOTAPE)

LEYLA SANTIAGO, CNN CORRESPONDENT (voice-over): Six-year-old Natalie wants food. She is hungry. Her mother hears, but she doesn't have anything to give her. The family of five sitting on a street corner in Cucuta, Columbia, made the journey from Venezuela last month. Ask Natalie why she is here.

UNIDENTIFIED FEMALE: (Speaking Spanish). SANTIAGO: She says things are tough because of Maduro, the President of Venezuela. Their lives here selling lollipops living day to day are an escape from political unrest, shortages and violence. Here they can make money and eat.

UNIDENTIFIED FEMALE: (Speaking Spanish).

SANTIAGO: She said she is here because she has to make money for the hotel.

The family depends on the generosity of others in a place where some help, many don't and most are too distracted to notice the little boy who hasn't had a meal today.

UNIDENTIFIED MALE: (Speaking Spanish).

SANTIAGO: The mayor of Cucuta says the town cannot afford to support what he calls an exodus of Venezuelans. If anyone understands limited resources, it's Freddie. These lollipops are all they have to sell and to eat. Yet with the little money he collects about $8 on a good day, the family pays for a room and their meal.

Tonight a few bread rolls, a few for his sons and a few for complete strangers, another Venezuelan family just like his. Because at the end of the day, Dad wants his kids to understand this isn't what he wants for them, but it should be appreciated.

UNIDENTIFIED MALE: (Speaking Spanish).

SANTIAGO: This life they are living he says far away from home, no --

[05:25:00]

SANTIAGO: -- money, no school, is still better than what many are living in Venezuela, even if here they feel invisible -- Leyla Santiago, CNN, Cucuta, Columbia.

(END VIDEOTAPE)

HOWELL: Wow.

ALLEN: What a family and what a father. That is heart-wrenching.

HOWELL: A few for his family and a few for strangers there.

Leyla Santiago, thank you so much for bringing us that report.

Here in the U.S. state of Georgia, a mother accused of stabbing five family members made her first court appearance. Those close to her say that she is mourning the loss of her father and struggling with depression.

ALLEN: But her demeanor in the courtroom was anything but the somber one you might expect. Our report from Emily Schmidt (ph).

(BEGIN VIDEOTAPE) EMILY SCHMIDT (PH), CNN CORRESPONDENT (voice-over): A Georgia mother accused of murdering four of her children and her husband made a bizarre court appearance. Isabel Martinez appeared in Gwinnett County Court, smiling, praying and, at one point, looking directly at news cameras and giving a thumbs-up.

The judge gave her a warning as he was reading her charges.

JUDGE MICHAEL THORPE, GWINNETT COUNTY COURT: Ma'am, I'm going to caution to you cut out the display for the cameras. It's really not a good idea and probably not to your benefit.

SCHMIDT (PH) (voice-over): Through an interpreter, Martinez repeatedly waived her right to an attorney.

ISABEL MARTINEZ, ALLEGED MURDERER (through translator): My attorney is the people.

SCHMIDT (PH) (voice-over): Police say Martinez fatally stabbed her husband, Martin Romero (ph), and four of her children, ranging in ages from 1 to 10. A fifth child was also stabbed but survived. She is in serious but stable condition at a children's hospital in Atlanta.

Neighbors and family members were left in shock following the grisly discovery Thursday morning at Martinez' home outside Atlanta, wondering what could have driven a mother to murder her children.

MARIA SALAZAR, GODMOTHER: I couldn't believe that when it happened. I mean, when they said that there had been a tragedy, I thought maybe a car accident.

She was a little down, depressed because of that. But we just didn't think it was so bad.

LETTY PEREZ, NEIGHBOR: She seems all good and happy and she love her kids. I don't know, I don't really know what happened.

SCHMIDT (PH) (voice-over): I'm Emily Schmidt (ph) reporting.

(END VIDEOTAPE)

ALLEN: How terrible.

Coming up here, President Trump gets ready for one of his most important meetings at the G20, the tricky topic: putting Trump at odds with China.

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GEORGE HOWELL, CNN ANCHOR (voice-over): 5:30 am on the U.S. East Coast. Welcome back to our viewers here in the U.S. and around the world. You are watching CNN NEWSROOM. It's good to have you with us. I'm George Howell.

NATALIE ALLEN, CNN ANCHOR (voice-over): And thanks for joining us. I'm Natalie Allen. Here are the top stories.

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ALLEN: Well, for the second time in two days, the United States is flexing its military might over the Korean Peninsula. Two U.S. bombers flew over the region in a 10-hour mission on Friday, joined by South Korean and U.S. fighter jets.

This exercise was a warning to North Korea, Pyongyang, after its launch of what it claimed was an intercontinental ballistic missile earlier this week.

HOWELL: South Korea also stepping up its own military drills. Our Pentagon correspondent, Barbara Starr, has this report for us.

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BARBARA STARR, CNN PENTAGON CORRESPONDENT: South Korea flexing its own military muscle, conducting a naval live-fire military drill to show the world and North Korean leader Kim Jong-un its own military might. For its part, North Korea is still celebrating the launch from the 4th of July.

UNIDENTIFIED MALE (through translator): The great success of the intercontinental ballistic missile launch is a demonstration of our mighty power.

STARR (voice-over): U.S. intelligence is urgently assessing what it knows about the North Korean ICBM test and how soon it will be able to strike U.S. soil.

UNIDENTIFIED MALE: We are still analyzing the latest test at this time.

STARR (voice-over): A key question: did the missile reenter the Earth's atmosphere intact?

That would be a necessary step for a North Korean ICBM to hit a target. Then there's the issue of placing a nuclear warhead on top of the missile.

REP. MICHAEL MCCAUL (R): They are trying to miniaturize this warhead to put it on top of this ICBM delivery system. So I think it's a very serious threat.

STARR (voice-over): A threat that, for now, the U.S. is confronting peacefully.

GEN. JAMES MATTIS, U.S. SECRETARY OF DEFENSE: This is a diplomatically led international effort to stop a worldwide threat that they are bringing to bear.

STARR (voice-over): But what does that look like? Secretary of State Rex Tillerson announced the Trump administration's goal is to roll back North Korea's nuclear and missile program.

REX TILLERSON, U.S. SECRETARY OF STATE: Stopping where they are today is not acceptable to us.

STARR: And a key diplomatic question: would it help to sit down and talk to Kim Jong-un directly?

A fascinating question to which nobody knows the answer -- Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

ALLEN: North Korea, of course, a topic in the coming hours here at the G20 summit.

That's what U.S. president Donald Trump and Chinese president Xi Jinping will be talking about. Let's get more on that meeting with Andrew Stevens. He joins us now live from Beijing.

A very, very important topic, obviously, Andrew, and the question, will these two leaders be able to do something about it?

How did they get along?

ANDREW STEVENS, CNN ASIA PACIFIC EDITOR: Yes, absolutely, Natalie. I mean, there is a lot on the table for these two to talk about. But North Korea looms large over --

[05:35:00]

STEVENS: -- everything, given what's happened in the last week or so. This is the most important bilateral relationship in the world. make no mistake, the U.S. and China. But the relationship between Donald Trump and President Xi has been rocky. Take a look.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: A man that I have gotten to like and respect.

STEVENS (voice-over): It was hailed as a budding bromance, all smiles, as Chinese President Xi Jinping and Donald Trump met at Trump's Mar-a-lago resort in April. A key issue for the two leaders, North Korea. Trump said he listened to Xi explain Chinese/Korean history for ten minutes and made him realize, "It's not what you would think." But in the months since, Trump has had a lesson in real politics. This week's missile tests showing that on North Korea, the U.S. and China are still miles apart.

TONG ZHAO, FELLOW, CARNEGIE NUCLEAR POLICY PROGRAM: The issue with North Korea is quickly becoming a major barrier in the actual relationship between Washington and Beijing. Both countries see North Korea as a major headache. They both want to resolve it earnestly but they are not on the same page how to most effectively deal with North Korea.

STEVENS (voice-over): Trump appears to believe that China is still the key to controlling North Korea, judging from his tweets on China over the past few days. China is North Korea's closest and main trading partner and Trump wants China to apply more economic pressure on Kim Jong-un. China says it has implemented U.N. sanctions including blocking coal exports from North Korea which cuts off a key source of hard currency for the Kim regime.

The U.S. says that's not enough and the bromance has been turning sour. President Xi this week complaining of "negative factors" which is complicating the U.S.-China relationship. China is dismayed with a recent U.S. arms deal with Taiwan, U.S. sanctions on a Chinese bank with alleged ties to North Korea and the U.S. Navy sailing through disputed waters in the South China Sea claimed by China as its own.

UNIDENTIFIED MALE: We are almost at the end of a honeymoon. They are doing things that are getting under China's skin. It's a combined sort of now we like you but on the other hand now we're going to press you. And as if to say, we can manipulate China into behaving the way we want to. I don't think that works too well.

UNIDENTIFIED MALE: That is not the way to play China?

UNIDENTIFIED MALE: I don't think so. I don't think China, especially now, Xi Jinping has to look strong and consistent and be the man of stability. He's not going to do something that is at Trump's bidding.

STEVENS (voice-over): China is also clear it does not want regime change in North Korea.

ZHAO: The dilemma is as follows. In order for economic sanction to be able to force North Korea to denuclearize, the sanction has to be so tough that it threatens the stability of the economic system and therefore threaten the stability of the regime.

(END VIDEOTAPE)

STEVENS: Now we know President Xi's position because we heard it when he met Vladimir Putin and that is the U.S. and North Korea need to get to the negotiating table. And to do that, the U.S. has to stop these joint military exercises with South Korea, which so enrages North Korea.

And at the same time, the North Koreans have to freeze their ballistic missile program.

But as we saw, as you said, Natalie, that second flight of U.S. and South Korean military aircraft over the Korean Peninsula just a few hours ago shows the U.S. is just not taking any notice of that path which is being offered by President Xi.

So can Donald Trump convince President Xi through coercion, through shared interests, to change his mind, to push harder?

That is the real question. ALLEN: Absolutely. We wait to see what happens with that meeting for sure. Andrew Stevens, thank you for your report.

HOWELL: Let's get some analysis now from John Nielsen Wright. He is a senior research fellow at Chatham House Asia Program, live in Paris with us this hour.

It's good to have you with us.

The question now is, which path forward will work?

The U.S. is making it clear that all options are on the table, including military power, with regard to North Korea. But China and, for that matter, Russia also pushing for more dialogue, which the U.S. says has not worked in the past.

JOHN NIELSEN WRIGHT, SENIOR RESEARCH FELLOW, CHATHAM HOUSE ASIA PROGRAM: I think the dialogue is something that the Americans inevitably are going to have to accept.

As you point out, military action is unpalatable. The risks are too high. You've got 10 million people living in Seoul just a few miles away from the DMZ and in range of North Korea missile capabilities. I think any seasoned observer would recognize that while deterrence is important, and that's why I think these recent overflights that we have seen are --

[05:40:00]

WRIGHT: -- an important way of demonstrating American resolve, not to be intimidated by the North, when it comes to putting pressure on Pyongyang, sanctions through the United Nations are a useful way of expressing global symbolic opposition to what the North has been doing, the idea that they will change the North Korean approach I think is fanciful.

And as we've heard from our reporter, the Chinese are resistant to this idea, questioning today, for example, Donald Trump's assertion that trade is increased by 40 percent through China and North Korea in the last quarter.

Beijing is arguing at this stage that that's an exaggeration. It doesn't take into account the fact that trade has actually declined over a three-year period. So I think ultimately we will have to come back to the question of talks.

And in South Korea, of course, you have a president, Moon Jae-in, that favors that approach. So, ultimately, I think, Washington will have to reluctantly have to accept that principle.

HOWELL: So we heard from the previous report, was just about the fact that these two leaders, they want to walk away from this meeting with, you know, the optics of strength.

The question is, you know the U.S. president has been pushing China to do more. President Trump has before tweeted his frustration with that relationship that recently expressed that he has hope that China will use its leverage.

Which way will it go?

WRIGHT: I think what we will probably see is Beijing making some symbolic moves in the direction of increased pressure. Just a week ago, of course, the Americans listed a Chinese bank, the bank of Dandong, which does -- is involved in some trade with North Korea.

They're therefore in a position, Washington is in a position to expand that secondary sanctions regime and to have more impact on Chinese banks. The problem with that approach, of course, is that it will then further antagonize Beijing.

So it's a delicate balance, if you like, a type of almost sanctioned brinkmanship, that the Americans trying to put pressure on the Chinese. Xi Jinping will want to save face, will want to appear to be more compliant to the wishes of the international community.

So I think we will see a stronger rhetorical denunciation of North Korea and perhaps Chinese support through a new resolution at the U.N. Security Council. But the idea that there will be really tough, painful sanctions that have an impact on Pyongyang, with Chinese (INAUDIBLE). I think, is an exaggeration.

But ultimately, Donald Trump, however frustrated he may be by the inability of the Chinese to resolve this, will have to have a new strategy. And at the moment, I think, a weakness in Washington is that the evidence that Donald Trump is thinking comprehensively about (INAUDIBLE) is a little thin on the ground. It needs to be a long- term approach to (INAUDIBLE).

HOWELL: John Nielsen Wright, thank you so much for the insight today.

WRIGHT: Thank you.

ALLEN: And still ahead here on CNN NEWSROOM, we'll have more from the G20 summit in Hamburg. We'll be right back.

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HOWELL: More now from the G20 summit. Earlier, President Trump met with the British prime minister Theresa May and he's meeting with several Asian leaders, including the Chinese president, Xi Jinping. For more, let's bring in Dan Merica, live in Hamburg, German.

It's good to have you with us this hour, Dan.

DAN MERICA, CNN DIGITAL CORRESPONDENT: Thank you.

HOWELL: So the issue of North Korea is sure to be a major point of discussion between President Trump and President Xi.

Can Mr. Trump expect go get more support?

MERICA: I think the hope going into this meeting is some form of a deliverable that they can tout after the meeting on North Korea. What you have seen is the saber-rattling North Korea has been doing, especially in the last few weeks, has worried a lot of leaders here.

And they've talked about it. Been very up front about it. And President Trump has been one of those leaders. But yesterday secretary of state Rex Tillerson after the meeting with Vladimir Putin said that, on China, they actually have seen their response to North Korea as a bit uneven.

And they said they have seen things done: for example, a few months ago, they were touting coal shipments being stopped from China to North Korea. But then the Chinese have taken a step back.

So what I think President Trump is trying to get going into this meeting is a little more certainty. And what they will want is a deliverable that they can come out of the meeting and tout, especially on North Korea.

Now President Trump hasn't exactly been consistent himself on North Korea and especially on China's role; in the span of a few months, even weeks, he has thanked Chinese leader Xi Jinping for his leadership in helping with North Korea, has written him off, has scolded them.

So he has kind of run the gamut in his response to the way China is dealing with North Korea. So going into this meeting, North Korea certainly is the biggest topic. And it will be the focus of questions afterwards.

And I think what you will see is the White House especially wants to get something out of this meeting on North Korea so they can quell fears, especially days after the North Koreans bragged about testing that intercontinental ballistic missile.

HOWELL: All right, Dan. So that is the meeting to come. But, again, the meeting that happened, that meeting between President Trump and President Putin, there was clear disagreement between Russia and the United States over whether Mr. Trump accepted Mr. Putin's explanation on hacking for the basics.

You know, Mr. Putin said that he denied any involvement and Mr. Lavrov later said the U.S. accepted that denial.

However, we understand from a senior official that that was not the case.

Where do things stand on that front?

MERICA: It seemed pretty quickly after the meeting that the White House sort of had the rug pulled out from under them on this meeting. Almost instantly Lavrov had told the media that President Trump agreed and accepted their explanation on 2016 hacking. That was quickly rebuffed by the White House.

But what happened was that Lavrov's response was on camera. The White House did not put Secretary of State Rex Tillerson on camera. So the rug was somewhat pulled out from under them. And the Lavrov tape kind of won the day, especially in the first hour or two hours after the meeting.

There really hasn't been much agreement on that meeting since then. I think the White House is pretty happy with how the meeting went. They liked the personal interactions that Vladimir Putin and Donald Trump had together. They bragged about the fact that the meeting was two hours and 16 minutes, almost four times as long as they had planned.

Secretary of State Rex Tillerson talked about the fact that Melania Trump, the first lady, actually came in an hour and 15 minutes into the meeting to try and break it up. But they went on for another hour.

So there really hasn't been an agreement and I think that will be the major question going forward here is what actually happened in that meeting.

And did President Trump actually agree with Russian president Vladimir Putin's explanation on the 2016 hacking?

HOWELL: Dan Merica, live for us Hamburg, Germany, thank you for the reporting today.

MERICA: Thank you.

ALLEN: A major event --

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ALLEN: -- is about to take place in Antarctica, a giant iceberg, the Larsen B Shelf. If you've heard about it, seen pictures of it, well, Derek is going to tell you what's going on -- when we come back.

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ALLEN: Massive iceberg about to break free from the east coast of Antarctica it's the Larsen Sea, which you have probably heard about, the Larsen Shelf. And Derek's here to tell us about it.

DEREK VAN DAM, AMS METEOROLOGIST: Gargantuan is the probably the best way to describe it. How about the size of Delaware. That's a ginormous ice sheet that is about to break off from this area.

We'll try break and it down for you. I will take you there, you are seeing a kind of an aerial perspective of the Larsen Ice Shelf. There is now a rift about 300 feet wide and 70 miles long that is formed within this area. And it continues to get bigger. At the beginning of June, the ice

shelf was about 8 miles from the edge, from breaking off. Now there is three miles of ice that holds this gargantuan shelf together. So not much solid ice separating the free ocean to the mainland of Antarctica. Here's --

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VAN DAM: -- the bottom portion of the world. We zoom into the eastern coastline of Antarctica. This is the Larsen Ice Shelf. It kind of juts out. It's just south of South America. Here's an aerial photograph of the widening rift that continues to form.

To put this into perspective, it is massive, the potential iceberg that will calve over the coming hours if not days to come. We're expected this thing to be seven times the size of New York City, that's roughly 2,300 square miles for our international viewers, four times the size of London, 6,000 square kilometers this potential iceberg could be.

And if you were to break this down into terms of volume and size, it would be roughly the same amount of water that fills Lake Michigan.

This is another aerial photograph of an airplane trying to fly over this rift that continues to form. And what they're noticing is it continues to elongate but at a rapid pace, especially within the past month or so. We have had this particular region extend by about 5-10 kilometers, just in a short period of time.

And it's clearly seen on this visible satellite image, you can see how it continues to widen.

The issue going forward, a lot of people asking, why is this a big deal?

Well, this is a possible shipping lane, shipping area, also an area for natural gas, gas exploration. And when you have ships and icebergs the size of Delaware, you can see the potential problem there, especially when they're floating around, yes, very scary.

HOWELL: It could happen at any time now.

VAN DAM: It could.

HOWELL: All right, Derek, thank you.

ALLEN: And thank you for watching CNN NEWSROOM. I'm Natalie Allen.

HOWELL: And I'm George Howell. The news continues here after the break.