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Trump: KKK, Neo-Nazis, White Supremacists are "Repugnant"; Tillerson & Mattis Outline Diplomatic Approach to North Korea; Cornell Brooks Reacts to Trump's Latest Statements on Virginia Attack; NYT: Mueller Moves in Russia Probe. Aired 1:30-2p ET

Aired August 14, 2017 - 13:30   ET

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

[13:30:00] WOLF BLITZER, CNN HOST: Whatever anybody goes after, you know how he tweets. Tweets very, very quickly. How do you explain? It took until today, until the noon hour on Monday, to utter those words?

JOHN WHITBECK, CHAIRMAN, VIRGINIA REPUBLICAN PARTY: I think, Wolf, what we saw today in his statement today was really what we would have heard, would have wanted to have heard on Saturday. And I think at one point during Saturday, I remember watching this unfold in this beautiful city thinking this is not Virginia, this is not who we are, this is not Charlottesville. And to have the president come forward and have a lot of our leaders come forward and speak on behalf of Virginia and how much they care about what's going on in our commonwealth has been great for us.

BLITZER: A lot of those hate group individuals, who showed up, the excuse they had, they wanted to protest the dismantling of the Robert E. Lee, the Confederate statue in Charlottesville, Virginia. That may have been their excuse. I don't know how significant that was, but that's become a big issue. Where do you stand? Where does the Republican Party of Virginia stand on that Robert E. Lee statue?

WHITBECK: Our nominee for governor, Ed Gillespie, has spoken on this and we support our nominee.

(CROSSTALK)

BLITZER: What has he said?

WHITBECK: He said he supports of history of Virginia in all its form. You can't just eradicate the bad parts of our history just by taking down statues. I think he's right. One of the things that gets lost in this, these people were there about a statue. They were there to spread their message of hate and bigotry and racism. And it's up to all of us in Virginia, Republicans, Democrats and Independents, to stand against it, 100 percent. And the Republican Party of Virginia does, the RNC does, our president does, and we won't tolerate this.

BLITZER: You don't think that statue should come down?

WHITBECK: I don't think it should come down, but that's not the issue. We have to stop the hatred. We're getting away from that talking about things like Confederate statues. I think we really need to talk about the hatred done in Charlottesville. That's what we're focusing on now.

BLITZER: John Whitbeck is the chairman of the Republican Party in the Commonwealth of Virginia. Appreciate it.

WHITBECK: Thank you very much.

BLITZER: Still ahead, despite President Trump's fiery rhetoric about North Korea, his administration is presenting a rather cool and calm approach to the crisis, at least right now. A closer look at the latest developments when we come back.

(COMMERCIAL BREAK)

[13:36:18] BLITZER: We're getting reaction to the breaking news, reaction of the president's statement on the attack in Charlottesville, Virginia. We'll have a lot more on that coming up. And I'll speak live with Cornell Williams brinks, former head of the NAACP.

First, other important news we're following now. In less than two hours, President Trump is expected to order an official probe into alleged China trade abuses, such as the theft of an intellectual property from U.S. firms. The timing of this could be problematic. The U.S. wants China's help to calm the crisis in North Korea, but Beijing already said publicly that threats could poison its relationship with the United States.

Meanwhile, the secretary of state and the secretary of defense, are weighing in on North Korea. And the "Wall Street Journal" they write this -- let me quote -- "We are replacing the failed policy of strategic patience, which expedited the North Korean threat, with a new policy of strategic accountability."

Let's discuss this with retired Brigadier General Mark Kimmitt, a former assistant secretary of state for political military affairs serving under President Bush. And also with us, CNN military and diplomatic analyst, retired Rear Admiral John Kirby.

General, strategic accountability, strategic patience over. All previous administrations clearly failed, because the North Koreans, now they have a nuclear capability, maybe as many as 60 nuclear bombs. They might be able to soon to miniaturize those bombs, put them on warheads that could launch -- that could be attached to intercontinental ballistic missiles. How do you see strategic accountability?

BRIG GEN. MARK KIMMITT, CNN MILITARY ANALYST: I think the most important thing is, if we come to an agreement with North Korea that there will be a reduction in the number of nuclear weapons or in capabi9lity, it must be verifiable, it must be monitored, and there must be consequences.

BLITZER: Do you think that's at all realistic? North Korea will give up its nuclear capability?

KIMMITT: As you look at the editorial today, they talk about a complete denuclearization of the Korean peninsula. That has been something that China has wanted to see for a long time, that the United States has wanted to see. As long as we can convince North Korea we are not seeking regime change, he can be assured of regime survival, those are the elements in this entire deal.

BLITZER: And Kim Jong-Un, John, the leader of North Korea, he sees that nuclear capability that they clearly now have as his insurance policy for not winding up like Moammar Gadhafi of Libya, who gave up his nuclear program with the assumption he would survive. Where is he now?

REAR ADM. JOHN KIRBY, CNN MILITARY & DIPLOMATIC ANALYST: That's exactly right. They look at the United States as an existential threat. We know that's a ridiculous thing, but they view it that way and they believe it. They view their program, which is advancing faster than people expected it to, as an insurance policy against that threat. There's very little incentive right now, if no incentive, for them to come to the negotiating table.

But what you also saw in the editorial and what you have seen this administration do is also try to push on China. That's the key here. The path to Pyongyang goes through Beijing. They have to use carrots and sticks. You mentioned, one of the sticks is looking to probe into Chinese trade practices. They also need to look at carrots to try to incentivize China to have a different calculus. So far, they've been willing, Chinese, China, has been willing to accept a nuclear-armed North because they don't want a unified peninsula that's allied to the West.

BLITZER: Because China is the key exporter and importer involving North Korea.

KIMMITT: But I also see an opportunity for China in helping with the denuclearization. As we have extended out nuclear umbrella within NATO, causing other NATO members to eliminate their nuclear weapons, could China give that assurance and that insurance to North Korea, which would allow them to reduce their nuclear weapons or eliminate them entirely?

[13:40:06] BLITZER: In other words, you're suggesting China would tell the North Korean government, if you're attacked, you'll have the backing of China's nuclear capability?

KIMMITT: Exactly, as we do in NATO.

BLITZER: Is it realistic?

KIRBY: I think it's worth exploring. And I also think one of the things worth exploring is what former DNI Clapper said on CNN a couple of days ago, which is maybe just get to a point and accept they are a nuclear power and go from there. And that gives --

(CROSSTALK)

BLITZER: I can tell you the president of the United States says the U.S. will not tolerate nuclear weapons in North Korea. KIRBY: I understand that. I think you can still get to

denuclearization, but you start from a clean slate, accepting they have the capability. And as the general rightly points out, look at a way to regulate, inspect, and then withdraw the capability. That's another thing worth exploring as well.

BLITZER: You think?

KIMMITT: I agree.

You think there's any hope this current crisis now can be diffused. Last week, the North Koreans said, by mid-August, that's this week, they don't get the right words coming out of the United States, they will launch four intermediate-range ballistic missiles towards Guam?

KIMMITT: It's being diffused now. The fact the United States has not moved any assets nearer to the North Korean the border, and it has not ramped up it's rhetoric. I think they realize that, at this point, they have got what they want. They're now going to focus on continued nuclear development, not striking the United States.

BLITZER: You know there are supposed to be joint U.S.-South Korean military exercises, intensive exercises this month, which the North Koreans hate.

KIRBY: They always do. But these exercises -- you heard General Dunford say in Seoul today, they're important, not just about message sending, but real readiness and deterrent capabilities. The exercises should go on. And it should be reminding everybody there, these are defensive exercises, not offensive.

BLITZER: We know how the North Korean always react negatively to the joint exercises.

KIRBY: Indeed.

BLITZER: Guys, thanks very much, Mark and John Kirby. Appreciate it very much.

Just ahead, a major business leader quits the Trump advisory council after the president's initial response to the mayhem in Virginia this past weekend. We'll tell you what the CEO of Merck Pharmaceuticals had to say.

I'll be joined by Cornell Williams Brooks, the immediate past president of the NAACP. We'll get his reaction to the president's very public criticism of hate groups, including the KKK, white supremacists, Neo-Nazis, that we just heard only moments ago over at the White House. Much more coming up.

(COMMERCIAL BREAK)

[13:46:47] BLITZER: Last hour, President Trump tried to make amends for failing to condemn white supremacists by name over the weekend in the Charlottesville, Virginia, attack. For many, the damage is clearly already done. Today, one of the most prominent African- American CEOs, Ken Frazier, of Merck Pharmaceuticals, quit the president's manufacturing council. And in statement, Frazier wrote, "America's leaders must honor our fundamental values by clearly rejecting expressions of hatred, bigotry and group supremacy."

President Trump, within minutes, lashed out on Twitter, quote, "Now that Ken Frazier, of Merck Pharma, has resigned from the president's manufacturing council, he will have more time to lower rip-off drug prices."

Let's discuss and more with my next guest, CNN contributor, former president and CEO of the NAACP, Cornell William Brooks.

First, your reaction to Ken Frazier of Merck pharmaceuticals quitting the president's council.

CORNELL WILLIAM BROOKS, CNN CONTRIBUTOR: Well, Ken Frazier is a well- respected CEO and well-respected lawyer. For him to take this move, to take this step is a measure of the frustration, the righteous indignation of many Americans. For him to quit the manufacturers council and one of the nation's most prominent business leaders said what the president failed to do heretofore struck a deep cord of disgust. He did the right thing.

(CROSSTALK)

BLITZER: A lot of people are pointing out, within minutes, the president went after him on Twitter but it's taken several days, Saturday, Sunday, today's Monday, to formally try to fix what he initially should have said on saturday.

Let me play the clip of what he finally said today.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PERSIDENT OF THE UNITED STATES: Racism is evil. And those who cause violence in its name are criminals and thugs, including the KKK, Neo-Nazis, white supremacists, and other hate groups that are repugnant to everything we hold dear as Americans. We are a nation founded on the truth that all of us are created equal.

(END VIDEO CLIP)

BLITZER: What's your reaction?

BROOKS: My reaction is this, let's note this. The president responded within a nanosecond to Ken Frazier quitting the council as a consequence of his moral affairs. It took him several days to call out white nationalists, Klansmen and white supremacists for their violent conduct in Charlottesville. That's a tragedy. When the White House issued a statement, anonymously, clarifying what the president failed to say, suggesting that the president was trying to have his cake and eat it, too. That is to say, condemn implicitly completely white nationalists without calling them out. So today's statement is certainly an improvement but it represents the rhetorical minimum. It is not yet the maximum. Until such time as we see response of -- [13:49:55] BLITZER: He did announce the Department of Justice is formally opening up a civil rights investigation into that individual who allegedly took that vehicle as a weapon, went into the crowd, killed that young woman, injured 20 others.

BROOKS: Yes, it's an important step. Let us note this. We commend the president for sending prosecutorial resources into that particular crime. But to the extent this defendant was standing in the midst of Neo-Nazis, white supremacists, to what degree is a larger crime? The president has not yet spoken to what else happened to Charlottesville. That's critically important, this act, driving a car into a crowd, motivated by racism and anti-Semitism, looks like terrorism.

BLITZER: Clearly, this individual who has been charged now, denied bond early this morning, he, at least in high school, his high school teacher says he was sympathetic to neo-Nazi thoughts. Do you have confidence that the Civil Rights Division at the Justice Department can move forward effectively and get the job done?

BROOKS: Having served in the Civil Rights Division, I have total confidence in the Civil Rights Division and the career professionals in the Department of Justice. As was said earlier, the issue here is the political appointees. The issue is the direction given by the attorney general and given by the White House. So the point being here is that if career prosecutors are allowed to do what it is that they have taken an oath to do, we'll get justice. But we need to hear from the top.

BLITZER: They clearly see this as a hate crime.

Thanks very much, Cornell William Brooks, for joining us...

BROOKS: Thank you.

BLITZER: Coming up, the man spearheading the Russia probe is making bold moves. "The New York Times" reports that Robert Mueller wants to talk to key current and former Trump administration officials. Who is on the Mueller list? We'll have details when we come back.

(COMMERCIAL BREAK)

[13:56:25] BLITZER: Special Counsel Robert Mueller is seeking interviews with key members of the Trump administration, including Reince Priebus, according to "The New York Times." "The Times" also reporting that as part of the investigation into Russia's efforts to influence last year's presidential election here in the United States, Mueller has already asked for details on specific meetings, and is looking into President Trump's decision to fire the FBI Director James Comey.

Our Shimon Prokupecz is following these developments.

What more do we know, Shimon, about the latest developments in the investigation?

SHIMON PROKUPECZ, CNN CRIME & JUSTICE CORRESPONDENT: This story seems to indicate that Mueller's team, some things they getting to is the obstruction. A key in this story is it looks like Mueller and his team wanted to speak to Reince Priebus. Significance of that is, Reince apparently had a meeting with Comey the week before Trump, the president, met with Comey and said, let this investigation go, let the Flynn investigation go. The week prior to that, when Comey meets with Reince, Comey tells Reince, this is inappropriate, you shouldn't be reaching out to the FBI, speaking to us directionally. The key there it seems Mueller wants to know what did Reince relate to the president about whether what's appropriate and what's not appropriate.

In terms of the other parts of the investigation, the financial investigation, we know a lot about Manafort, the search warrant that was executed at his home. Depending on who you talk to, that sometimes means the investigation is near completion, or they may start to make moves of an arrest or other things. Some are telling us they're still going through documents, they're still searching through the various other documents they have received from banks, from corporations, other companies that the folks within the Trump world are a part.

So everything is ongoing. There's no conclusion in sight. We don't see them moving on anything in particular right now. The investigation is just is still ongoing.

BLITZER: Any reaction from the White House so far?

PROKUPECZ: No. Various people at CNN have tried to reach out to the White House and they have responded to us. Neither, none of the president's attorneys, other folks who have attorneys, still at the White House and have attorneys, they have not gotten back to us.

BLITZER: Clearly, Robert Mueller has not been intimidated by some of the criticism that's been leveled against him?

PROKUPECZ: No, if anything, he's digging in. I've spoken to someone over the weekend who knows Mueller, worked for Mueller, and says this is exactly the way he does things, using a grand jury, using subpoenas, using search warrants. It's all part of how he views investigations should be conducted.

BLITZER: It could have been awkward. But today, totally unrelated, the new FBI Director Christopher Wray and the Attorney General Jeff Sessions had a private meeting with the president of the United States. It could have been awkward, but talk a little bit about that.

PROKUPECZ: Interestingly enough, if you notice, it was the attorney general, Jeff Sessions, and the FBI director who went there together. He did not seek to speak to the FBI director alone, which would indicate perhaps maybe he's learned his lessons that this is not appropriate, that he should not be reaching out to the FBI director on his own. It is interesting. It is important that they both went there together, and met with him, and briefed him on the investigation. But we'll see.

BLITZER: And no cameras.

PROKUPECZ: That's right, yes.

BLITZER: It could have been awkward, indeed.

Thanks very much, Shimon Prokupecz for joining us.

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

In the meantime, the news continues right now right here on CNN.

[14:00:14] BROOKE BALDWIN, CNN ANCHOR: Wolf, thank you so much.

Good to --