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Trump Closer to Final Decision on Afghan War; Russia Sending Troops to Baltic Borders for Planned Military Exercises Next Month; Trump Faces Criticism for Calling New Hampshire "Drug-Infested Den"; China Pushes Back as Trump Unveils New Approach to China Trade Policies, Criticism over North Korea. Aired 1:30-2p ET

Aired August 03, 2017 - 13:30   ET

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


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[13:31:52] WOLF BLITZER, CNN HOST: President Trump may be moving closer and closer to a final decision on Afghanistan. The president met with his national security adviser, General H.R. McMaster, just a little while ago, with the two expected to talk about the promised new policy. Right now, there's still more than 8,000 U.S. troops on the ground in Afghanistan.

Earlier, I spoke with Jens Stoltenberg, the NATO secretary-general, about the mission and participation by the United States.

(BEGIN VIDEOTAPE)

BLITZER: Secretary-General, thanks so much for joining us.

Have you been given any indication of what the new U.S. policy towards Afghanistan will be?

JENS STOLTENBERG, SECRETARY-GENERAL, NATO: Well, Secretary Mattis met all the -- Mattis met in June and discussed the presence, U.S. presence in Afghanistan and we have agreed to continue to train, assist and advise Afghans forces. We have ended the combat mission in Afghanistan. The focus is now on enabling the Afghans to protect and defend their own country. And we also agreed that there will be an increase in the number of NATO troops in Afghanistan. But the exact number is not yet finally decided.

BLITZER: And has the United States, as far as you know, agreed to increase the number of U.S. troops as part of the NATO mission?

STOLTENBERG: The U.S. has not given any final numbers, but we had the meeting in June with all of the defense ministers, and several NATO allies indicated a willingness, and also announced more, or increased, force contributions. So there will be an increase, but we will not change the nature or the character of the mission. We will not do combat operations in that framework in Afghanistan. The aim is make sure the Afghan sources themselves are able to fight Taliban, fight terrorism and to stabilize the country. We don't think that's an easy task, but we are -- we welcome the fact that it the Afghans now are able to do this themselves. And we are in a supportive role training and assisting them. BLITZER: As you know, the United States has been supplying most of

the troops in Afghanistan. Are you concerned, Secretary-General, that President Trump would pull a few thousand at least U.S. troops out of Afghanistan?

STOLTENBERG: Well, around half of the troops in the NATO mission, the support mission are Europe's and the rest, half of them, older NATO allies or partner nations. So there is a considerable non-U.S. contribution to this mission.

As I said, we haven't gotten a final figure from the U.S., but I expect the U.S., of course, to continue -- to continue to be a part of the mission, because the U.S. is, by far, the biggest force contributor. And the whole reason why NATO is in Afghanistan is in response to a response on the United States. This is the only time NATO has invoked Article V of the collective defense clause. That was an attack on the United States, 9/11/2001. And the reason why we are in Afghanistan is to prevent Afghanistan from becoming a safe haven for international terrorism once again.

[13:3528:] BLITZER: To be precise, as far as the U.S. troop level in Afghanistan, based on latest numbers, about 6,700 U.S. troops are part of the NATO mission, the mission you describe, but there's another 2,100 U.S. troops part of a counterterrorism operation that's not directly related to the NATO operation.

As we speak, Secretary-General, Russia is sending thousands of troops to the borders with several Baltic nations, Estonia, Latvia, Lithuania, all NATO member countries. Russia's planned military exercises next month. Do you see this as a military buildup? Are you concerned about what's going on along these borders?

STOLTENBERG: We don't see any imminent trouble against any NATO ally, including against any of the Baltic States. But we have seen exercises as part of a pattern that we've seen over several years with a significant Russian military buildup. And that's the only reason NATO has responded with the strongest reinforcement or collective offense since the end of the Cold War. We have tripled the size of NATO response force. We have increased our presence in the eastern part of the alliance. And we have deployed four battle groups to the Baltic countries and Poland. At the same time, we don't want a new Cold War. We don't want confrontation with Russia. What we do is balance. It's proportionate. And we continue to seek leadership because Russia is our biggest neighbor. Russia is there to stay. Ad we have to try to keep tensions down.

BLITZER: It's interesting you say that, because President Trump today tweeted this, "Our relationship with Russia is at an all-time and very dangerous low. You can thank Congress, the same people that can't even give us health care."

First of all, do you agree that the relationship -- forget about the U.S. -- the NATO relationship in Europe, the Secretary-General of NATO, is the NATO relationship with Russia right now at an all-time and very dangerous low? STOLTENBERG: This, I think, is correct to say that NATO's

relationship with Russia is -- is more difficult than it has been any time since the end of the Cold War. At the end of the Cold War, we hoped to develop a close partnership with Russia, but especially after the illegal annexation of Crimea in 2014, and the continued Russian destabilization of eastern Ukraine, and the relationship between NATO and Russia has deteriorated considerably. But at the same time, Russia is there. Russia is our neighbor. Russia is there to stay. So we are -- we are pursuing it, a dual approach, which is defense, deterrence and dialogue. And we believe that as long as we are strong, as long as we are predictable, we can also engage in political dialogue with Russia to try to avoid escalation and to avoid a new Cold War.

BLITZER: President Trump blames Congress for this dangerous and low relationship right now with Russia. Interestingly enough, he's not blaming President Putin or the Russians. Who do you blame for this low in this relationship, the dangerous relationship, the worst you've seen since the end of the Cold War with Russia?

STOLTENBERG: I will not go into a domestic U.S. debate. What I can say is, of course, it is Russian behavior that is the reason why we have this with Russia. They have violated international law. They have taken a part of another country, Crimea. The is first time borders have been changed in Europe by the use of force since the Second World War. And they continue their aggressive policies, destabilizing eastern Ukraine with Russian forces, in eastern Ukraine supporting the separatists. So that's the reason why we have seen a worsening in the relationship between the West and NATO and Russia. And that's the reason why NATO has responded, both with our military buildup, but also with economic sanctions, which has been imposed by, not only NATO allies, but NATO allies and European allies.

BLITZER: Secretary-General, thanks so much for joining us.

STOLTENBERG: Thank you.

[13:39:56] BLITZER: Coming up, "a drug-infested den," that's how President Trump labeled New Hampshire in his phone call with Mexico's president. Now New Hampshire Senator Maggie Hassan is calling him out. She's about to join us live. There you see her. She's up on Capitol Hill.

We'll be right back.

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BLITZER: President Trump is now facing serious criticism over comments he made during a phone call with the Mexican President Enrique Pena Nieto. The "Washington Post" released a full transcript of that call that came just a week after his inauguration back in January. While talking about stopping the flow of drugs in the United States, the president said, quote, "I won New Hampshire because New Hampshire is a drug-infested den."

Joining us now from Capitol Hill is Senator Maggie Hassan, Democrat from New Hampshire.

Senator, thanks for joining us.

13:45:03] SEN. MAGGIE HASSAN, (D), NEW HAMPSHIRE: Thanks for having me.

BLITZER: I should point out, first of all, that the president, President Trump actually lost New Hampshire to Hillary Clinton in the general election. He did win the Republican presidential primary there.

You had a very harsh response on Twitter to what the president told the Mexican leader. You called his words "disgusting." What's your message to the president?

HASSAN: Well, his words were disgusting. They're an outrage. And my message really is this: He should stop insulting people and instead work with us to get the resources to our state and states all around the country who are also challenged by this epidemic so that we can roll up our sleeves, get people more medication and treatment and work together do beat this thing. What we've seen from the administration so far is, efforts that would actually undermine what we've done so far.

The administration's attempt to repeal the Affordable Care Act, which had Medicaid expansion in New Hampshire. We have bipartisan Medicaid expansion. And people on the front lines of this epidemic say that's the number-one tool they have to combat the epidemic. Then you see the president' s budget, which would defund critical forces for our ongoing work here. My message, stop insulting people, learn about this illness, and help us combat it and beat this epidemic.

BLITZER: Because he has established a task force to deal with opioid- related deaths. The New Jersey Governor Chris Christie is directly involved and other top officials are directly involved. Have they consulted you? Has the president asked for your thoughts or anyone senior in the administration?

HASSAN: Well, they certainly consulted with a group of us who are Senators from states where this epidemic is particularly challenging. But my message here is, let's stop the talk and let's get to action. People are dying every day from drug overdoses, and from this epidemic. We need to come together and do what the experts in the field already have identified at critical actions. The interim report by the president's commission made recommendations that are action items I've supported a long time.

The National Governors Association rolled out similar recommendations a couple years ago. This isn't about talk. This is about action. And I would invite the president to learn more about this. But more importantly, to commit to providing the resources to New Hampshire and other states who are challenged by this epidemic so that we can beat this thing and save lives.

BLITZER: Is there any prospects, serious prospect, of bipartisan cooperation in the Senate, now that repeal and replace of the Affordable Care Act, Obamacare, has failed? Any prospects of bipartisan cooperation to try to improve, to fix some of the serious problems of Obamacare?

HASSAN: Oh, sure. I mean, you heard Senator Alexander and Senator Murray, chair and ranking member of the Health Committee, on which I serve, announce we would have hearings in September about how to make the improvements that Democrats have been calling for, for some time, and hoping to work with Republicans on. And you know, Democrats and Republicans have been working on the opioid crisis together as well. Senator Young and I have both successfully put into the FDA reauthorization some critical work to make sure that doctors know about the dangers of something called abuse deterrent opioids. So we have been doing some work together. And there is bipartisan interest in particular on the opioid crisis. It affects people from all walks of life, all across our country, and we really need to be coming together and helping people get healthy again.

BLITZER: Senator Maggie Hassan, of New Hampshire. Thanks so much for joining us.

HASSAN: Thank you.

BLITZER: Good luck.

HASSAN: Thank you.

BLITZER: Up next, President Trump set to unveil an aggressive new approach towards China and its trade policies, and China's already pushing back. New information, right after the break.

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[13:52:56] BLITZER: Tensions between China and the United States, the world's two largest economies, could increase as the White House moves closer and closer to launching an investigation into whether Chinese trade practices are unfair. This, as President Trump continues to voice his strong disapproval over the country's handling of North Korea. A Chinese official is already sending a direct warning to the United States.

(BEGIN VIDEO CLIP)

GAO FENG, CHINA COMMERCE MINISTRY SPOKESMAN (through translation): Any trade measures taken by WTO members should abide by the rules of the WTO. We have always considered China/U.S. economic and trade relations the bedrock and propellers of the China/U.S. bilateral relations.

(END VIDEO CLIP)

BLITZER: CNN's international correspondent, Will Ripley, is following the story, joining us live from Beijing right now.

Will, what can you tell us about this investigation?

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, there are several factors at play here, Wolf. One is President Trump's frustration over the North Korea issue. Also trade talks in Washington pretty much fell apart last month. And a lot of U.S. companies in China have complained that for a long time that it's not a level playing field. They are forced to share their technology with Chinese companies as the Chinese government infuses state money into those companies and protects them from competition with American competitors, especially in the high-tech field.

And so there's a lot of fear moving forward that American companies in order to do business in this market where they make money are going to have to give more and more and more. And that's what the Trump administration is expected to launch this investigation. And if the investigation finds unfair trade practices, then the penalties could be steep tariffs on Chinese companies or even pulling some licenses.

BLITZER: What are the other possible consequences you're hearing over there in Beijing?

RIPLEY: Well, we know that China in the past has had a tit-for-tat response in these trade issues. And this wouldn't be coming as a surprise to Chinese officials. You heard the warnings preemptively. Chinese officials also saying that the United States should not conflate the trade issue with the North Korea issue. But nonetheless, U.S. companies could really feel the pinch here. China could halt its imports of soybeans, a major revenue generator, and take other steps to increase the already growing $350 billion trade deficit between the United States and China. We've seen in the past, China really cracked down on companies when they're not happy with the actions of their government. And a lot of people are concerned this could evolve into a trade war, which could have really catastrophic consequences for all sides and cause the stock market to lose a lot of ground after those recent gains -- Wolf?

[13:55:26] BLITZER: Very quickly, any chance the Chinese will squeeze the North Koreans?

RIPLEY: At this point, it seems as if the Chinese feel they are doing what they need to do. And they have no intention, as far as we can tell, of cutting off trade or cutting off the flow of oil to North Korea. They're going to keep going forward because they think that keeping North Korea economically stable keeps the peninsula safer, which, of course, is not what the United States feels.

BLITZER: Will Ripley, reporting from Beijing. Thanks very much.

That's it for me. I'll be back 5:00 p.m. Eastern in "THE SITUATION ROOM."

In the meantime, the news continues right after a quick break.

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